Trump Administration Approves Summer E15 Fuel Sales

The Renewable Fuels Association welcomed a decision by the Environmental Protection Agency to allow uninterrupted sales of lower-cost E15 this summer. At a time of rising gasoline prices, year-round sales of E15 will help American drivers save money at the pump, strengthen the rural economy, and boost energy independence. The RFA thanked EPA Administrator Lee Zeldin and the White House for announcing waivers that will allow continued sales of E15 at almost 5,000 gas stations across the country. “With geopolitical conflict roiling energy markets worldwide, we applaud the President and Administrator Zeldin for acting quickly and decisively to combat potential fuel shortages and help keep a lid on gas prices this summer,” said RFA President and CEO Geoff Cooper. In announcing the decision, EPA pointed out that the lower-cost, American-made E15 blend is legally approved for use in more than 95 percent of vehicles on the road today. 

Klobuchar Touts Improvements in the Domestic Supply Chain

Senator Amy Klobuchar (D-MN), the Ranking Member of the Senate Agriculture Committee, addressed the recent Agri-Pulse Ag and Food Policy Summit conference. She said one of the most important things on her mind is the price of fertilizer. “Last month, as farmers began preparations for the spring planting season, fertilizer components like urea spiked 25 percent,” she told attendees. “Ammonia, phosphate, sulfate, and potassium have also sharply eroded what little profit margin exists on the farms this year.” Klobuchar also said that, since the 1980s, the number of companies producing ammonia has declined substantially. “Today, four companies control more than three-quarters of the nitrogen fertilizer in the U.S., while potash and phosphate fertilizer markets are 100 percent controlled by these four companies,” she added. “The increased concentration in the fertilizer industry has put the farmers in a really hard situation, and the Iran war only makes that situation even worse.” 

Groups Call for Reasonable Guidelines for Aviation Tax Credits

A letter signed by over 20 agricultural and biofuel groups was sent to officials at the Agriculture, Treasury, and Energy Departments, and the White House, asking for reasonable guidelines to allow farmers to benefit from the 45Z tax credit. The credit is intended to facilitate the sale of ethanol and other biofuels in the aviation sector. “Farmers are facing structural economic issues where projected costs exceed expected revenues,” the letter said. “Biofuels are a critical market for U.S. farmers, and tax incentives like the 45Z tax credit are essential policy instruments to secure long-term demand for liquid fuels made from American-grown feedstock.” The letter also said stable, long-term market incentives will help farmers outpace their global competitors, and allow them to make capital, input, and management decisions that shape the next several growing seasons. “Clear 45Z guidance is critical for farmers and their lenders to plan ahead with confidence,” the groups said. 

Spring Arrives on the Upper Mississippi River

Army Corps of Engineers staff locked the Motor Vessel Crockett through Lock and Dam 2 in Hastings, Minnesota, this week, with two additional barges en route to St. Paul, Minnesota. She was immediately followed by four additional tows. The lockages marked the unofficial start to the navigation season because the lock and dam is the last one before reaching St. Paul. The average first tow arrives around the third week in March. The earliest date for a tow to reach St. Paul occurred on March 4 in 1983, 1984, and 2000. Keeping the Mississippi River navigation system open is critical for the nation’s economy. A 15-barge tow is the equivalent of more than 1,050 semi-trailers or 200 rail cars. One barge can carry more than 50,000 bushels of wheat, enough to make 2.1 million loaves of bread. Shipping commodities on the river saves money and ultimately helps reduce grocery store costs. 

Food and Agriculture Generate 20 Percent of All U.S. Economic Activity

Every year, the Feeding the Economy report provides a comprehensive look at the full economic footprint of U.S. food and agriculture. Among the report’s biggest takeaways is that food and agriculture support $10.4 trillion in total U.S. economic output, representing about 20 percent of all economic activity. The sector supports almost 29 million jobs, or roughly 30 percent of total U.S. employment, even though on-farm jobs account for less than two percent. Food and agriculture generate over $1.3 trillion in tax revenue, reinforcing their role as a foundation of local, state, and federal economies. Maintaining domestic food and agriculture production helps anchor jobs, income, and economic activity within the United States. The report highlights a broad reality: agriculture is not just one sector of the overall economy, but it is a foundational driver of economic activity, supporting millions of jobs, trillions in output, and significant tax revenue across every state. 

Compeer Awards Over 100 Scholarships to Future Ag Students

Compeer Financial selected 105 high school seniors out of 447 eligible applicants to receive a scholarship worth $2,000 toward the pursuit of a degree related to agriculture. This year’s recipients excel academically with an average GPA of 3.9. In addition, 74 percent are involved in FFA, while 20 percent are members of 4-H. Areas of study receiving the most interest among the scholarship winners include ag, plant, animal, and veterinary sciences; agricultural business; and ag education. “Compeer is committed to sustaining agriculture and our rural communities, and the next generation is integral to supporting the expanding industries that contribute to a dynamic, collaborative, and thriving rural environment,” said Karen Schieler, manager of Compeer Giving within Compeer Financial. “Compeer Giving is proud to help these hard-working students as they pursue a degree in agriculture or a related field and enable them to explore the vast career opportunities across ag-related industries.” 

Thursday Watch List

Markets

USDA will lead off Thursday with their weekly Export Sales report at 7:30 a.m. CDT. Later in the afternoon, USDA will release the quarterly Hogs and Pigs inventory report at 2 p.m. CDT. Otherwise, the market will of course be in tune to developments regarding the ongoing war in the Middle East.

Weather

A strong front is diving south through the northern half of the country on Thursday. Scattered showers are already occurring with it, but it will be more potent Thursday afternoon and evening across the Midwest as strong-to-severe thunderstorms are expected to develop from Missouri to Ohio.