Stabenow Announces Senate Ag Committee Agenda

Incoming Senate Agriculture Committee Chair Debbie Stabenow laid out her agenda for the committee Thursday. The Michigan Democrat says, "My vision for the committee revitalizes our food and farm economy to grow new opportunities in American agriculture and provide access to healthy food for American families.” Stabenow says the committee will build on past bipartisan achievements to strengthen the diversity of agriculture, support the millions of jobs in the farm and food economy, protect land and water, strengthen small towns and rural communities, and support families working hard to make ends meet. The agenda includes responding to COVID-19 to address hunger and the food supply chain, and address climate change with voluntary, producer-led, bipartisan solutions. Additionally, Stabenow seeks to fight childhood hunger with stronger nutrition programs, and create jobs and improve the quality of life in rural America. Stabenow says the committee will fill key leadership positions at the Department of Agriculture and lay the groundwork for the next bipartisan farm bill.

Senators Seek Guidance for Farmers Applying for PPP Loans

A pair of U.S. Senators want the federal government to issue guidance excluding Coronavirus Food Assistance Program payments from farmers’ and ranchers’ 2020 gross receipts for purposes of obtaining a second draw loan through the Paycheck Protection Program. Senators John Thune, a South Dakota Republican, and Tammy Baldwin, a Wisconsin Democrat, made the request in a letter to the Department of Treasury and the U.S. Small Business Administration. The Senators refer to the interim final rule on the PPP loans released in early January. In outlining how businesses must demonstrate a 25 percent reduction in gross receipts in 2020 compared to 2019, the interim final rules state that forgiven first draw PPP loans do not count toward gross receipts. However, the Senators say the rules are silent on whether or not Coronavirus Food Assistance Program payments count towards farmers’ and ranchers’ 2020 gross receipts for purposes of demonstrating a 25 percent reduction in receipts in 2020 compared to 2019. 

NCBA Welcomes House Introduction of Bipartisan DIRECT Act

The National Cattlemen’s Beef Association hailed the introduction of bipartisan legislation to create new opportunities for cattle producers and processors to market beef products. The Direct Interstate Retail Exemption for Certain Transactions, or DIRECT Act of 2021, would allow retail quantities of meat processed under state-inspection to be sold across state lines through e-commerce. NCBA Policy Division Chair Todd Wilkinson says, "The DIRECT Act will allow cattle producers and smaller beef processors to more easily evolve to meet the growing demand for e-commerce sales." Many states currently have inspection programs approved by the Department of Agriculture's Food Safety and Inspection Service as “at least equal to” federal standards. However, state-inspected products can only be sold interstate if approved to do so under the Cooperative Interstate Shipping Program. The DIRECT Act would amend the retail exemption to allow processors, butchers, or other retailers to sell normal retail quantities of State Inspected Meat online to consumers across state lines.

Organic Groups Seek Swift Finalization of Origin of Livestock Rule

A coalition of organic groups urges the Department of Agriculture’s National Organic Program to finalize the Origin of Livestock rule. In a letter to the acting Agriculture Secretary, the groups say, “We need a strong, enforceable Origin of Livestock rule as soon as possible.” The letter, signed by 118 organic organizations and 249 organic farmers from across the nation, strongly urges the Secretary of Agriculture to oversee finalization of the origin of organic livestock rule and ensure that the rule is enforceable. Last June, USDA's National Organic Program missed a deadline Congress set for the NOP to finalize the long-awaited rule. Organic Farmers Association Executive Director Kate Mendenhall says, “Organic dairy farmers have been left behind by the NOP, and the years of broken promises of fixing this regulatory loophole have been devastating.” The organic groups say that each month that goes by without implementation of this rule “puts more family organic dairy farmers out of business across the country.”

CoBank: Uneven Foodservice Recovery Implies Same for Animal Protein

As COVID-19 spread across the country last year, it spurred the "great grocery grab of 2020" - a shift to at-home food consumption not seen since the early 1980s. The abrupt change also forced the most significant shift in meat supplies the industry has experienced, diverting massive volumes of meat and other food originally intended for restaurants into retail distribution channels and grocery stores. U.S. animal protein supplies have returned to normal, and foodservice sales have improved since the onset of the pandemic but may not return to pre-pandemic levels until the second half of 2022, according to a new report from CoBank's Knowledge Exchange. A CoBank spokesperson says the trends in demand “are central to the profitability and viability of the U.S. animal protein supply chain.” The beef and pork sectors have some flexibility to adapt, as major packers sell their products to a variety of retail, foodservice and export customers. In the poultry sector, however, many integrators and poultry plants focus either on retail or foodservice, but not necessarily both.

Army Corps to Repair $54 Million of Missouri River Navigation Channel

The U.S. Army Corps of Engineers 2021 civil works plan includes approximately $54 million for the repair of navigation structures along the Missouri River. The structures were damaged from high water and flooding over the past three years. The funding will address the highest priority repairs which pose an imminent threat to the navigation channel function, or significantly jeopardizes nearby critical facilities, structures, or property. The large volume of water that has passed through the system has damaged hundreds of river structures from Sioux City, Iowa, to St Louis. Those structures are critical and provide for a stable navigation channel when river conditions are within the lower range of operational flows. The 2020 navigation season, which saw a lower water year on the river, was challenged by shoaling in the navigation channel. The Corps of Engineers intends to restore full capacity and system reliability to pre-flood conditions providing that funding is appropriated and available.

Washington Insider: Easy Money to Continue

Bloomberg is reporting this week that Fed Chair Jerome Powell declared once again that the battle against COVID-19 is not over and that the Fed will work to keep the monetary spigots wide open to aid the pandemic-hit economy. He continued to brush aside concerns the super-easy stance will spawn a stock market bubble and too-high inflation.

“We have not won this yet,” he told a press conference on Wednesday, after the Fed voted to keep short-term interest rates pegged near zero. “We're a long way from a full recovery.”

Powell frequently referred to the poor condition of the labor market even as reporters asked about the meteoric rise of GameStop Corp. shares and frothy stock market prices. He spoke fervently about the plight of those whose lives have been upended by the virus, repeatedly pointing to the 9 million Americans still without jobs as a result of the pandemic.

“He's doubling down on the human angle,” said Priya Misra, global head of rates strategy at TD Securities. “His job isn't to get the stock market to a certain level, it is to get to full employment and he doesn't see a risk of inflation overshoot.”

It was a message for some Fed officials who have entertained the notion that the recovery could be stronger than expected, requiring the Fed to start pulling back on asset purchases this year. It was also a signal to the new administration that the Fed shares its goal of getting Americans back to work as quickly as possible and spreading the benefits of a tight labor market to Blacks and other groups frequently left behind.

As Powell spoke, stock prices slumped, suffering their biggest losses since October on growing concerns that the rapid rise of equities in recent months had left them overvalued. The Fed chairman declined to comment on the price gyrations in GameStop, a video-game retailer that has seen its market value skyrocket as a surge in retail buying has forced hedge funds to cover their short positions in the stock.

Democratic Senator and former presidential candidate Elizabeth Warren of Massachusetts cited the frenzy around GameStop in pressing the administration of President Joe Biden to crack down on Wall Street. “It's long past time for the SEC (Securities and Exchange Commission) and other financial regulators to wake up and do their jobs – and with a new administration and Democrats running Congress, I intend to make sure they do,” she said.

While Powell steered clear of commenting on GameStop, he evinced little concern about the broad-based run-up in stock prices, saying the Fed's focus is on the resilience of the financial system as a whole. “Financial stability vulnerabilities overall are moderate,” he said.

Although the Fed theoretically could raise interest rates to try to head off a stock market bubble, that's not something it has ever done or plans to do, he added.

The Fed chairman also played down worries about a spike in inflation as the economy enjoys what could be strong second half growth with newly vaccinated Americans returning to restaurants, movie theaters and sporting events. While some increase in inflation is likely, it probably won't be large or long-lasting, according to Powell.

“We're going to be patient” and not pull back on support for the economy on the first sign of stepped-up price pressures, he said.

In that regard, Powell said it was premature to talk about tapering the Fed's massive purchases of U.S. Treasury and mortgage-backed bonds, saying it would take “some time” to achieve the threshold for reducing them from their current clip of $120 billion per month. That's good news for the Biden administration, which is pushing for Congressional passage of a $1.9 trillion stimulus package that would greatly increase the supply of U.S. Treasury debt.

Bloomberg added that “Powell considers falling short of a full recovery as a much more significant risk compared to the possibility of higher inflation. This is in line with his recent public comment that now is not the time to talk about a policy exit. Instead, it confirms our assessment that the central bank stands ready to provide additional support to the economy, primarily through even more aggressive asset purchases.”

Powell, who's received the first vaccination of two against the virus, said the Fed remained focused on the downside risks to the outlook and the danger that the pandemic will leave lasting scars on the economy.

“Even after the economy fully reopens, I think we are still going to need to keep people in mind whose lives have been disrupted because they've lost the work that they did,” Powell said. “It would be wise for the longer run productive capacity of the country if we were to look out for those people and help them find their way back into the labor force even if means continuing support for an additional period of time.”

For Brett Ryan, senior U.S. economist with Deutsche Bank AG, “The message was simple. They are going to keep pedal to the metal,” he said. “They are not going to use monetary policy as a tool to pop bubbles in asset markets.”

So, we will see. The political scene is fully as toxic as it has been recently and economic and monetary policies are playing a central role in that outlook. These are developments producers should continue to watch very closely as emerge, Washington Insider believes.

Senate Republicans Seek To Protect Trump Waters Rule

More than two dozen Republican senators, led by Sen. Joni Ernst, R-Iowa, introduced a resolution seeking to preserve the Trump administration's Navigable Waters Protection rule put forth by EPA, which replaced the Obama-era waters of the U.S. (WOTUS) rule.

Republican lawmakers, especially those from rural states, have long complained the WOTUS rule is a prime example of overregulation.

“Everyone should agree that clean water should be a national priority. But I can't stand by and allow for another Washington power grab that will make it harder for Iowans to farm, ranch, and build,” Ernst said in a statement.

Trump EPA's rule set a significantly narrower definition of which waters are covered under federal protections, excluding wetlands connected to covered waters through groundwater, many ditches, and ephemeral streams, or streams that flow with rainwater. Environmentalists said that went further than rolling back the Obama-era regulation, excluding from federal protections waters that have been covered for decades.

The Biden administration is expected to revisit the issue as it is among the Trump-era rules that the new administration has under review

FSA Temporarily Suspends CFAP Payments

USDA has temporarily suspended making payments under the Coronavirus Food Assistance Program (CFAP), citing the regulatory review underway by the new Biden administration.

“In accordance with the White House memo, Regulatory Freeze Pending Review, USDA has suspended the processing and payments under the Coronavirus Food Assistance Program,” USDA's Farm Service Agency (FSA) announced. “Additional Assistance and has halted implementation until further notice. FSA local offices will continue to accept applications during the evaluation period.”

The agency further noted, “In the coming days, USDA and the Biden Administration intend to take additional steps to bring relief and support to all parts of food and agriculture during the coronavirus pandemic, including by ensuring producers have access to the capital, risk management tools, disaster assistance, and other federal resources.”

In guidance issued to state and county offices, FSA advised that “some activities have been suspended during the transition between Administrations. This routine action was taken to provide an opportunity for the incoming Administration to understand and evaluate the features of CFAP, including recent statutory provisions included in the Consolidated Appropriations Act, 2021.”

FSA said that the suspension of activity applies to “additional assistance under CFAP 1 and 2.”

Friday Watch List

Markets

At 7:30 a.m. CST Friday will be the release of personal income, consumer spending and core inflation numbers. We will also be watching for the announcement of any additional China purchases of corn and soybeans, and weather in South America.

Weather

Dry conditions will cover the entire central and eastern U.S. Friday. Temperatures will be seasonal north and east and above normal south and west. A winter storm in the western U.S. is slated to cross into the Midwest during the weekend with potentially heavy rain and snow.

USDA Announces COVID-19 Farm Loan Relief

The Department of Agriculture Wednesday announced the temporary suspension of past-due debt collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs. The measures are to provide relief to farmers during the COVID-19 pandemic. USDA will temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice. USDA has extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers. The announcement expands previous actions to lessen financial hardship. According to USDA data, more than 12,000 borrowers, approximately ten percent of all borrowers, are eligible for the relief. The temporary suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place.

NFU: USDA Debt Relief Will Help Keep Farmers in Business

The National Farmers Union says the Department of Agriculture debt relief action Wednesday will provide farmers much-needed relief. USDA announced that it will temporarily suspend past-due debt collections and foreclosures for farmers borrowing under the Farm Storage Facility Loan and the Direct Farm Loan programs while also offering flexibilities under the Guaranteed Loan Program. Additionally, the agency plans to halt foreclosures and evictions that are already underway. The announcement comes as a relief to NFU, which has been pushing legislators and administration officials to provide family farmers and ranchers with the support they need to withstand the added challenges caused by the pandemic. In a statement, NFU President Rob Larew lauded the action, saying that it will be particularly beneficial to beginning and socially disadvantaged farmers. Larew says, “By suspending debt collections and foreclosures, the agency will help struggling farmers stay on their land and continue growing food for their fellow Americans.”

USDA Announces More Key Staff Appointments

The Department of Agriculture announced more names of folks serving in key staff positions Wednesday. Rebecca Piazza was named Senior Advisor for Delivery in the Food, Nutrition and Consumer services undersecretary’s office. Most recently, she served as Vice President of Program Delivery at Nava Public Benefit Corporation. Steffanie Bezruki was named Chief of Staff in Rural Business Services. During nearly seven years on Capitol Hill, she served in various leadership positions, including most recently as Legislative Director for Congresswoman Abby Finkenauer. Abbey Meller was named Confidential Assistant in the Congressional Relations Office. She served as an Organizing Associate at the Center for American Progress in Washington, D.C. Paul Zeiss was named Confidential Assistant in the Office of Intergovernmental Affairs. Before joining USDA, Zeiss served in various capacities on President Joe Biden’s campaign, most recently as a field organizer. And, Tharun Vemulapalli was named Confidential Assistant in the Farm Production and Conservation undersecretary’s office. Vemulapalli previously served as a field organizer for the Democratic Party, working primaries, caucuses and the general election.

Senate Ag Committee Schedules Vilsack Confirmation Hearing

The Senate Agriculture Committee scheduled a confirmation hearing for Agriculture Secretary nominee Tom Vilsack. The committee will meet Tuesday, February 2, at 10:30 ET, to consider the nomination. Committee leadership, Michigan Democrat Debbie Stabenow and Arkansas Republican John Boozman made the announcement Wednesday. Vilsack is expected to enjoy a smooth confirmation process overall. Vilsack previously served as Agriculture Secretary for all eight years of the Obama administration before heading up the U.S. Dairy Export Council. The Iowa native has broad support from agriculture in returning to the Department of Agriculture. However, a coalition of progressive groups, including Food and Water Watch and Progressive Democrats of America, urged Senators to block the confirmation, claiming, "Tom Vilsack is in the pocket of "Big Ag." Last week, President Joe Biden assigned Kevin Shea as the acting Agriculture Secretary until Vilsack is confirmed by the Senate. Shea has been the administrator of USDA's Animal and Plant Health Inspection Service since 2013.

Executive Order Seeks to Conserve 30% of U.S. Lands and Oceans by 2030

President Joe Biden signed an executive order Wednesday that his administration says will help restore balance on public lands and waters. The executive action focused on climate change directs the Interior Department to outline steps to achieve the President's commitment to conserving at least 30 percent each of lands and waters by the year 2030. Interior will undertake the process with broad engagement, including agricultural and others, to identify strategies that reflect the priorities of all communities. The Biden Administration says it will work to achieve the goal by supporting local, state, private, and tribally led nature conservation and restoration efforts that are underway across America. The action also directs the Interior Department to pause new oil and natural gas leasing on public lands and offshore waters. The Biden administration says the order will create jobs, and provide a path to align the management of America’s public lands and waters with the nation’s climate, conservation, and clean energy goals.

Americans to Eat Record 1.42 Billion Chicken Wings for Super Bowl LV

The National Chicken Council says consumers will eat two percent more chicken wings during the upcoming Super Bowl. On Super Bowl weekend, Americans will devour an estimated record of 1.42 billion wings while watching the Kansas City Chiefs and Tampa Bay Buccaneers battle for the Lombardi Trophy. The National Chicken Council’s annual Wing Report shows several reasons for the uptick. NCC spokesperson Tom Super says, "restaurants like wing joints and pizza places were built around takeout and delivery, so they didn't have to change their business model that much during the pandemic." Wings also align with consumer desire for comfort food during the pandemic. Department of Agriculture data also confirms the demand. According to the most recent Cold Storage Reports, there was a 29 percent reduction in November and a 24 percent reduction in December in year-over-year wing inventories in cold storage, meaning restaurants and retailers took a lot of wings out of freezers and stocked up months in advance for the big game.  

Washington Insider: Challenges for USDA

The New York Times carried a detailed retrospective this week on the “State of the Union for food.” It began by noting that “transition memos from the left flank of American agriculture” have been piling up including pleas small and large.” It listed several: fix the rules for raising organic livestock and reverse the department's track record with Black farmers. Restore school food standards and strengthen GMO labels. Prioritize the climate crisis. There was even a suggestion to change the name to the Department of Food and Well-Being, among many others.

Still, the Times said that a key perspective about USDA for “food warriors,” who worry that their issues were shoved back several squares on the game board under former President Trump is that USDA is an understaffed agency facing staggering hunger and safety challenges.” It will likely be led by Tom Vilsack, who was Agriculture secretary in the Obama administration is expected to be confirmed by the Senate for another turn, NYT said and commented that “he has already sketched out his agenda.”

“There are probably five very, very large challenges ahead that have to be dealt with very quickly,” Vilsack said. Topping the list is protecting Agriculture Department employees and people who process the nation's food from the virus, and figuring out which land-grant universities, government laboratories and other department offices might be able to store and administer vaccines.

Hunger relief was listed as a pressing issue, as are two of his boss's other priorities: promoting social justice and fighting climate change. Next comes propping up regional food systems and helping farmers.

However, the Times also notes that Vilsack is returning to a vastly different department from the one he ran in the Obama era, when it landed on the Forbes list of America's best employers. Morale is low and many positions are unfilled – especially in agencies that provide the data and scientific research for policy decisions.

The Agriculture Department, with a budget of $153 billion and nearly 100,000 employees, runs 29 agencies and offices whose jobs range from feeding the poorest Americans and regulating what public schoolchildren eat to managing forests and helping farmers sell commodities like soybeans abroad.

Under President Obama, childhood nutrition and the quality of school food became a priority. Michelle Obama created a permanent White House garden and climate-friendly policies gained traction.

When President Trump arrived at the White House, his supporters joked about turning the garden into a putting green. His USDA secretary, Sonny Perdue, moved the department's largest science-based research agencies, the Economic Research Service and the National Institute of Food and Agriculture, from Washington to Kansas City, Mo. Many employees resigned rather than move – the staffs were gutted, limiting the agencies' effectiveness.

Also, President Trump became a champion in many rural communities, easing regulations and paying farmers when his “get tough” trade policies and the pandemic hurt sales.

But the mood was bleak on the other side, according to Laura Batcha, the chief executive officer of the Organic Trade Association which represents a $50 billion segment of the food industry. “The root of it was a hyper-anti-regulatory agenda with no respect for organics or other forms of sustainable agriculture.”

The Times says that some advocates, like Batcha, have strong hopes for Vilsack – but others consider him a retread and not even all agribusiness and commodity farmers are happy with his nomination. Still, the new president went with experience, seeking someone who could immediately get to work on pandemic-related safety and nutrition issues. The number of Americans who face hunger rose by some estimates to more than 50 million in 2020, from about 34 million in 2019, the Times said.

Last week, President Biden signed an executive order that would increase both the amount of federal food assistance for about 12 million people who use the supplemental nutrition programs and the grocery money given to families with school-age children. He has also included more money for other federal feeding programs in his proposed $1.9 trillion stimulus package.

The pandemic has shown how fragile the food-supply chain is, Vilsack said, and has underscored the need to open more regional and local markets and increase the number of meat processors so the country isn't so reliant on a handful of plants.

Changes that many people thought were decades away, like universal school meals, stronger urban-rural supply chains and e-commerce for agriculture, have accelerated during both the pandemic and the Trump administration, said Krystal Oriadha, the senior director of policy and programs at the National Farm to School Network.

Farmers, environmentalists and anti-hunger advocates were forced to strengthen relationships based on a new understanding of how interconnected and vulnerable the food system is. “This is a new moment, with a new generation of voters is putting pressure on ideas around environmental and racial-justice issues like we haven't had before,” she said.

“If we have one-idea-fits-all at the national level, it just gets watered down,” she said. “I can't think nationally anymore. I need to act locally. I need to go where the doors are open.”

So, we will see. Clearly, the ag industry is far more complicated now than it used to be and many of its key issues are extremely controversial—especially those linked to the environment and other social issues. These are concerns that producers should watch especially closely as they emerge, Washington Insider believes.

Sinclair Confirms Receipt of RFS Waivers In Court Filing

Sinclair Oil Corporation said in court filings this week it was the recipient of waivers of its Renewable Fuels Standard (RFS) obligations via small refinery exemptions (SRES) granted by the Trump administration earlier this month.

Reuters reported that Sinclair was the recipient of at least two of the three waivers granted.

Sinclair made the admission in court filings defending the waivers in response to the Renewable Fuels Association (RFS) filing to block the waivers; The U.S. Court of Appeals for the DC Circuit ruled the three waivers granted by EPA should be stayed. Sinclair filed the statement in court, saying it had the right to intervene in the matter as if the SREs are blocked, it would face financial harm. It is not clear if Sinclair was the recipient of all three waivers issued by the Trump administration last week — two for the 2019 compliance year and one for the 2018 compliance year.

The SRE issue is just one of the biofuel policy matters facing the new administration as EPA also now has to put forth proposed levels for the 2021 biofuels and 2022 biodiesel levels under the RFS.

USDA 's FAS In China Still Notes Uncertainty On Over-Quota Tariffs On Corn Imports

The USDA Foreign Agricultural Service (FAS) in China has kept its import forecast for corn at 22 million metric tons for 2020-21, indicating that the country will likely use imports of sorghum, barley and other grains in feed rations.

But the report also addressed the issue of China's corn imports, which FAS pegs at 4.5 mmt more than the official USDA level. The calendar year 2020 corn imports by China surpassed the 7.2 mmt tariff-rate quota (TRQ), the report noted, “with no slowdown in sight.”

But the issue of the 65% tariff that is applied to imports above the TRQ remains a question, as the report said, “It remains unclear if the 65% out of quota duty was applied to imported corn or if additional TRQs were quietly issued as official government agencies remain silent on the matter. In addition, there is rampant industry speculation of a 'special TRQ' that will be used for China to import U.S. corn to meet its purchase commitments under the U.S.-China Phase One Economic and Trade Agreement.”

It is interesting that even USDA's on-the-ground offices in China are unable to unearth additional details on the 65% tariff that applies to imports above the TRQ levels, a key question given that China's appetite continues strong for U.S. corn, including 1.36 mmt of purchases announced Tuesday by USDA.

Thursday Watch List

Markets

At 7:30 a.m. CST Thursday, USDA's weekly export sales report, weekly U.S. jobless claims, a report of U.S. GDP for the fourth quarter and the latest U.S. Drought Monitor all are set for release. U.S. new home sales and a U.S. index of leading indicators are due out at 9 a.m., followed by natural gas inventory at 9:30 a.m. Traders continue to keep a close watch on the latest weather forecasts and any export news that develops.

Weather

Dry conditions are in store across the central U.S. Thursday. Precipitation will be confined to light snow in the Great Lakes. Temperatures will be seasonally cold in the Midwest and near to above normal in the Plains. A storm system in the western U.S. is indicated to bring rain and snow to the Midwest during the weekend.

Biden to Approach China with Strategic Patience

The Biden administration will approach economic and trade relations with China with “strategic patience.” The administration is starting to review current policies, including reviewing tariffs, but that doesn’t mean Biden favors removing tariffs. White House Press Secretary Jen Psaki (Sock-ee) said early this week the President “will take a multilateral approach to engaging with China, and that includes evaluating the tariffs currently in place,” adding, “the President is committed to stopping China’s economic abuses on many fronts." The Phase One trade agreement between the U.S. and China has increased China's purchases of U.S. farm commodities. However, the purchases are still not on target to reach levels pledged in the agreement. China is expected to continue the increased purchases in 2021. A China Foreign Affairs Ministry Spokesperson responded, "We hope the new U.S. administration will learn from the Trump administration's lessons where they carried out the wrong policies on China.”

U.S. and EU Groups Seek Tariff Relief

A group of 72 EU and U.S. organizations urges leaders to remove or at least suspend all additional and retaliatory tariffs affecting or threatening Trans-Atlantic trade. In a letter addressed to President Joe Biden and the EU Commission President, the groups say suspending the tariffs is urgently needed to address economic harms. Specifically, the groups refer to tariffs on large civil aircraft and steel and aluminum disputes. Food and agricultural goods make up a disproportionate number of the EU’s overall tariff line, according to a 2020 analysis by the American Farm Bureau Federation. The most impacted group includes alcohol, tobacco and cotton. The next largest category is oilseeds, oils and fats. The letter states, “We believe immediate suspension of these tariffs is a necessary and fundamental action, which will provide an economic stimulus at a time when it is needed most.” Groups signing the letter include the American Soybean Association, the National Association of Wheat Growers, the U.S. Grains Council and others.

Farmer Co-ops Applaud White House Call to Buy American

The National Council of Farmer Cooperatives applauded President Joe Biden’s Buy American executive order signed this week. The action supports manufacturers, businesses and workers to ensure that federal purchasing programs follow Buy American requirements. The order seeks to close loopholes in how domestic content is measured, create a new position at the Office of Management and Budget to oversee the issue, and increase oversight of waivers to domestic preference laws. The Council has long supported enforcing and strengthening the Buy American provisions in programs administered by the Department of Agriculture, such as the National School Lunch and School Breakfast Programs. NCFC and its members have expressed deep concern in recent years over a marked increase in the amount of foreign-produced food served under the school lunch and breakfast programs. NCFC President and CEO Chuck Conner says, "Sourcing non-U.S. foods—even when competitively priced domestic alternatives are available—not only runs counter to the law, but destroys jobs across the value chain.”

Tester: QLA Does Not Provide Adequate Support for Feed Grain Producers

U.S. Senator Jon Tester says the Farm Service Agency has further delayed disaster assistance support for farmers who were hit by quality losses in 2018 and 2019. Despite the recent rollout of the Quality Loss Assistance Program, the Montana Democrat says some producers were left out of the assistance package. Tester says QLA does not provide adequate support for producers that sold grain as feed. Under existing QLA guidelines, producers must submit quality discount settlement documentation, which is not often issued for feed wheat. Without documentation, Tester says, “this means that the producers who need QLA the most are unable to make full use of this program." The Department of Agriculture QLA program's announcement earlier this month was meant to provide relief to producers who suffered crop quality losses in 2018 and 2019. It was created to supplement relief provided to farmers through the Wildfire, Hurricane, and Indemnity Program Plus. Tester urged the Farm Service Agency to correct the claimed errors.

Family-owned Farms Account for 96% of U.S. Farms

Family farms comprise 96 percent of all U.S. farms and 82 percent of the value of all agricultural products sold. The Department of Agriculture's National Agricultural Statistics Service recently released the data in the 2017 Census of Agriculture Farm Typology report. The report focuses on the family farm, defined as any farm where the majority of the business is owned by the producer and individuals related to the producer. The report classifies all farms into unique categories based on two criteria, who owns the operation and GCFI, gross cash farm income. GCFI includes the producer’s sales of crops and livestock, fees for delivering commodities under production contracts, government payments, and farm-related income. The data shows that small family farms, those farms with a GCFI of less than $350,000 per year, account for 88 percent of all U.S. farms, 46 percent of total land in farms, and 19 percent of the value of all agricultural products sold. However, the number of family farms decreased by four percent since 2012.

Corn Belt Land Market Seeing Strong Prices

Buying interest in farmland has been stable for the past several years. However, the level of interest grew starting last summer in the eastern Corn Belt. Farmers National Company reports prices for top-quality cropland sold at auctions and listings increased significantly since before harvest. Demand for good farmland has improved, and good cropland is selling for prices last seen in 2013. Government payments, low-interest rates, and rising grain prices sustained farmers' interest in buying land, especially in the fall. The boost in net farm income provided the financial comfort for farmers to step into the land market. Farmers National Company's land sales volume was up 35 percent during the final quarter of 2020 compared to 2019 despite a normal to lower supply of land for sale in the overall market. Looking ahead, the company suggests investor interest and farmer demand coupled with a low supply of good cropland on the market will continue to drive the land prices in 2021.

Washington Insider: New Efforts to Prevent Future Pandemics

Bloomberg is reporting this week that the new Biden administration is arguing that even without a “home run antiviral” for COVID-19, Dr. Francis Collins is proposing a big push to develop a treatment from scratch to prepare for future coronavirus outbreaks.

That work will likely take several years, the longtime director of the National Institutes of Health acknowledged. By then the nation should be long past “herd immunity” in the present crisis.” But even with the unprecedented success of vaccine development for COVID-19 — much of which built on decades of basic research funded at the NIH — Collins sees the need for a lot of work ahead.

“We must not lose this opportunity. Even as we hope we're going to get past the worst of SARS-CoV-2, we've got to keep this momentum going. There will be other pandemics. And some of them may very well be coronaviruses.”

When Dr. Collins was reappointed to lead the nation's biomedical research programs, he became the only NIH director to be tapped by three different presidents for the role — and also will be one of the longest-serving NIH directors of all time.

Collins said that Jan. 22 was the third day working under his third administration — and he focused on priorities both for the COVID-19 response and beyond.

The decision to keep Collins isn't surprising, as he's one of the few bipartisan political appointees in a very partisan environment, Bloomberg said. President Barack Obama first nominated Collins in 2009 and it was a group of Republicans who urged then President-elect Donald Trump in late 2016 to keep him.

Collins said that his renomination came after a “very nice, brief conversation” with President-elect Joe Biden about the need for consistent leadership in an important moment for biomedical research and how the two had worked well together when Biden was the vice president. Biden led the Cancer Moonshot initiative to double the rate of progress on cancer prevention and therapies.

Biden told Collins that “he had a lot of confidence in what he was doing and what he could do. And so, he was saying, and asked, Will you agree to be carried over?' And, of course, I said yes.”

“Of course, Tony Fauci is very much in the center of what is being done about COVID. And Tony and I do speak nowadays several times a day on making sure to make the most of this opportunity for science to lead the effort,” he said, referring to the director of the NIH's National Institute of Allergy and Infectious Diseases who's Biden's chief medical adviser on COVID-19.

Their priorities include more work on vaccines, new therapeutics, and better tests, Collins said.

On the vaccine effort, NIH is starting a program to understand whether virus mutations lessen how well vaccines and monoclonal antibodies work. They're also working on a testing pilot project with the Centers for Disease Control and Prevention that would essentially flood a community with free, at home testing to see if it changes behaviors.

“We are still not yet at the point where we need to be in terms of knowing what's the right approach to testing to get schools reopened, to make it safe for everybody to come back to the workplace, to open up restaurants and other places that people would like to go, which is just not safe right now,” Collins said.

Collins said he hopes the testing pilot program will be up and running in a few weeks.

On therapeutics, Collins said the agency has worked to identify the most promising ideas among hundreds and hundreds to put them into well-designed, rigorous, and faster, protocolâ??driven clinical trials. There have been some successes, including recent findings that full-dose blood thinners reduce the need for life support and led to better outcomes for hospitalized COVID-19 patients.

Collins said “the study showed actually it caused no more side effects—and that it was clearly successful in terms of keeping people from ending up on the ventilator.”

Scientists are also moving forward with more monoclonal antibody therapeutics, Collins said. But long term there's a need to develop antivirals that are specific to the coronavirus, such as remdesivir, an antiviral mediation.

“We hoped that there might be some that had already been developed for other viruses and remdesivir was really the only one that came through. But it is not a home run. It's a benefit, but it's not what you really hope to have,” Collins said.

The NIH director said he's hoping there will be additional funding, particularly under supplemental virus relief packages. While the pandemic has been the top R&D priority, Collins mentioned a number of other research areas he wants to advance as part of the $42.9 billion agency he oversees. These include cancer immunotherapy, gene therapy, and research in Alzheimer's disease, the opioid crisis and the long-term effects of COVID-19.

“That's just a short list,” he said. “We really want to get fully empowered again.”

So, we will see. There is still a “fog of war” surrounding the virus, its mutations and how best to treat it and how to prevent similar outbreaks in the future, so Dr. Collins and his colleagues have their work cut out for them for some time. These efforts will be central to full U.S. economic recovery, and producers should watch them closely as they continue to be implemented, Washington Insider believes.

Proposed Rule From EPA On Biofuel and Biodiesel Levels Formally Withdrawn From OMB Review

The proposed rule on 2021 biofuel and 2022 biodiesel levels under the Renewable Fuel Standard (RFS) that has been shown as under review at the Office of Management and Budget (OMB) since May has been formally withdrawn.

The development means that the Biden administration EPA will now have to send forth a new proposed rule on the levels. The Trump administration had previously set a goal of putting for the proposed levels by December and finalizing them by June. It is not clear what the new timeline will be for the proposed and final levels.

The move is not surprising given the Biden administration undertaking a review of uncompleted and completed regulations from the Trump administration.

Normally, the proposed RFS levels are released in June or July of the year prior to them taking effect with a statutory deadline of November 30 for the levels to be finalized for the coming year (biodiesel levels are set a year in advance).

New Republican Members Of House Ag Committee Set

There will be seven new Republican members of the House Ag Committee, according to recommendations from the House Republican Steering Committee.

New members include Reps. Michelle Fischbach of Minnesota, Tracey Mann of Kansas, Randy Feenstra of Iowa, Michael Cloud of Texas, Kat Cammack of Florida, Barry Moore of Alabama and Mary Miller of Illinois. Democrats have not yet finalized their Ag panel membership.

The new slate of members underscores the need for educating new members on U.S. farm policy, a situation which has seemingly increased with each election cycle as members with years/decades of experience in farm policy are either replaced or retire.

Wednesday Watch List

Markets

At 7:30 a.m. CST Wednesday, the U.S. Commerce Department releases a report of U.S. durable goods orders for December. The U.S. Energy Department releases its weekly energy inventory report, including ethanol, at 9:30 a.m. The Federal Reserve concludes its open market committee meeting at 2 p.m. and is expected to keep the federal funds rate target near zero. Traders continue to examine the latest weather forecasts and watch for any export news.

Weather

Light snow is in store for the southern Midwest Wednesday. Other crop areas will be dry, allowing for clearing of roads in areas that had heavy snow earlier this week. Northern areas will be very cold; wind chill bulletins cover much of the far Northern Plains. A large storm system bringing rain and snow to the Far West is indicated to be a rain and snow producer in the Midwest during the coming weekend.

Biden Speaks with Canada’s Trudeau

President Joe Biden spoke with Canadian Prime Minister Justin Trudeau Friday in his first call with a foreign official. The leaders discussed combatting the COVID-19 pandemic, strengthening economic ties, defense and climate change. They also discussed the U.S.-Canada supply chain, along with promoting and protecting the economic relationship between the U.S. and Canada, including bilateral trade and energy commitments. Trudeau raised Canada’s disappointment with the United States’ decision on the Keystone XL pipeline, underscoring “the important economic and energy security benefits of our bilateral energy relationship,” as well as his support for energy workers. Biden halted construction on the controversial pipeline via an executive order on his first day in office. The White House noted Biden acknowledged the disappointment regarding the decision, adding Biden "reaffirmed his commitment to maintain an active bilateral dialogue and to further deepen cooperation with Canada.” The two leaders agreed to meet next month to continue the dialogue. 

USDA Announces Heather Dawn Thompson as Director, Office of Tribal Relations

The Department of Agriculture Monday announced Heather Dawn Thompson's appointment as Director of the Office of Tribal Relations. USDA says Thompson is a member of the Cheyenne River Sioux Tribe, a Harvard Law School graduate, and an expert in American Indian law, tribal sovereignty, and rural tribal economic development. With Thompson in place, USDA will return the position directly under the Secretary, “restoring the office’s important government-to-government role.” A USDA spokesperson says it's "important to have a Director who can serve as a lead voice on tribal issues, relations and economic development within the Office of the Secretary." Most recently, Thompson served as a member of the American Indian Law Practice Group, where she worked on federal Indian law and Tribal agriculture. In the private sector, Thompson was previously a partner at Dentons, where she was one of only a handful of Native American partners at an “AmLaw 100” law firm.

2021 Pork Industry Forum Will be a Virtual Event

The National Pork Board recently announced the 2021 Pork Industry Forum will be a virtual event. The organization says the decision comes after much consideration and guidance from health officials. The event largely serves as a planning session for the National Pork Board. The virtual event, scheduled for March 3-5, 2021, includes the Pork Act Delegate session. The 15 producers who serve as members of the National Pork Board and Pork Checkoff staff leadership will hear directly from Pork Act delegates appointed by the Secretary of Agriculture. Each year the delegates confer, vote on resolutions and advisements and provide direction on the issues facing pork producers and the industry. All pork producers and media are invited to attend the Pork Act Delegate Session. The National Pork Board says a detailed agenda and registration details will be available soon. The 2020 event was held in Kansas City, Missouri. The 2022 Pork Industry Forum will be held in Louisville, Kentucky.

Colorado Senators Ask Biden to keep BLM HQ in Colorado

Colorado U.S. Senators Michael Bennet and John Hickenlooper recently reiterated their support for a fully functioning Bureau of Land Management headquarters in Grand Junction, Colorado. The Democrats penned a letter to President Joe Biden touting the benefits of a fully-fledged headquarters on the Western Slope. Despite committing to move the headquarters to Colorado, the Department of the Interior assigned 41 senior staff positions to Grand Junction, many of which they rushed to fill at the end of 2020. Bennet has supported moving the BLM national headquarters West for years, commenting on the idea in August 2017. As Governor, Hickenlooper advocated for the BLM to move its headquarters and touted the economic benefits for the state. In July 2019, then-Secretary Bernhardt announced that the BLM headquarters would move to Grand Junction, and just over a year later the department signed an order formalizing the move. However, the Senators say, “Despite these important and symbolic steps, the Trump Administration did not follow through on their commitment to Grand Junction.”

Rising Dairy Consumption Providing Comfort in a Challenging Time

Data shows dairy is bringing some comfort during a challenging time. Throughout the market ups and downs of the pandemic era, consumers love of dairy products has been constant, even rising in 2020 from 2019, according to the National Milk Producers Federation. Retail dairy purchases, which jumped at the pandemic's beginning, remained elevated throughout the year. With more meals being prepared at home, dairy has provided comfort in uncomfortable times. Coffee was complemented with real dairy cream or half-and-half. Milk remained essential to family nutrition. Milk consumption itself saw gains across all categories. Buttermilk use rose with the baking revival, organic and conventional volumes of fluid milk rose, and lactose-free milk saw increases comparable to those of plant-based beverages – which, is a comparably-sized market to that of lactose-free alone. Milk sales also grew more than plant-based beverages during the pandemic, nearly $1 billion in growth compared to less than $400 million for plant-based drinks.

Growing the Future of Agriculture through Give FFA Day

The National FFA Organization will again hold Give FFA Day. In 2020, through generous donations from FFA supporters, students and teachers across the country were able to continue to make a difference.  Once again, during National FFA Week, individuals will have an opportunity to step up and support FFA and agricultural education through Give FFA Day on Thursday, February 25. This year, the organization has a goal of getting 1,500 donors during the 24-hour period. FFA corporate partners will also participate in increasing contributions by matching them dollar-for-dollar on Give FFA Day. The first $25,000 donated will be matched by Carhartt, and the second $25,000 will be matched by John Deere. Other challenges will be announced throughout the day.  In addition, former FFA members and FFA alumni are encouraged to donate $19.71 in honor of the 50th anniversary of the National FFA Alumni, which was chartered in 1971. To prepare for Give FFA day, visit FFA.org/GiveFFADay.

Washington Insider: Reviving WTO, US Trade Policy

Bloomberg is reporting this week that the U.S. has considerable work to do before it rolls out its trade policy modifications. For example, the U.S. delegation to the WTO, in a statement Monday, said it's “not in a position” to back a proposal on appellate panel members, citing Biden's inauguration five days ago and continuing work on the transition.

The delay affects attempts to fill the vacancies on the WTO's appellate body – a seven-seat panel that has the final say on disputes that affect billions of dollars in commerce. The gridlock began after the Trump administration unilaterally opposed all new appointments to the panel.

While the U.S. has indicated its intention to work with allies to address mutual international concerns, the fate of the appellate body could remain in a holding pattern as the president attends to more pressing domestic issues. Furthermore, the U.S. Senate has yet to confirm the administration's nominee for U.S. Trade Representative, Katherine Tai, who is expected to lead the administration's approach to WTO reform.

In the meantime, the EU says it plans to introduce a new proposal aimed at addressing U.S. concerns with the appellate body in an effort to engage Washington on substantive reforms to the WTO. “We need a new EU-U.S. understanding on the appellate body or on the dispute settlement system,” EU Director-General for Trade Sabine Weyand said earlier this month.

Weyand said the EU will build upon a roadmap developed by WTO general council chairman David Walker to clarify the WTO's dispute settlement rules and potentially negotiate new ones to address the changes that have emerged since they were first agreed in 1995.

In addition, Bloomberg is reporting that recent remarks from Chinese President Xi indicate his determination to “stay the course” on trade and his charge that the world should abandon “ideological prejudice” and shun an “outdated Cold-War mentality.”

It's vital to stay committed to international law and international rules “instead of staying committed to supremacy,” Xi told the Davos Agenda event on Monday, in his first address since President Biden entered the White House. “Confrontation will lead us to a dead end,” he said, and urged a return to mutual respect to help the recovery from the pandemic.

“To build small circles and start a new Cold War, to reject, threaten or intimate others, to willfully impose decoupling, supply disruptions, or sanctions, or to create isolation or estrangement, will only push the world into division and even confrontation,” he said.

Xi's speech had been widely anticipated for the tone it would set for relations between the world's biggest economies over the next four years. Though Xi did not name Biden by name, many of his comments were clearly targeted at the new U.S. administration. Xi repeated many of the same talking points about multilateralism and “win-win” outcomes that he deployed in his last address to Davos four years ago, days before Donald Trump's inauguration, but he also signaled that he does not intend to change course in the face of U.S. pressure.

“Each country is unique with its own history, culture and social system, and none is superior to the other,” Xi said, warning against imposing a “hierarchy on human civilization” or forcing one's own systems onto others.

During the address, Xi hinted at his desire to reestablish high-level dialogue with the incoming administration, calling for countries to “enhance political trust through strategic communication.” The Chinese leader succeeded in building a cordial personal relationship with Trump even as the two powers descended into a trade war. That effort led to the development of official dialogue tracks which eventually disintegrated over the course of Trump's presidency.

By the time Biden was sworn in, more than 100 officially organized exchange forums had been disbanded and tariffs imposed on almost $500 billion of products. While Biden hasn't given many specifics on how he'll deal with these and other flashpoints, he has signaled a shift from confrontation to competition.

In his speech, Xi steered clear of the triumphal tone evident in some of his domestic addresses in recent years. In a speech last September, Xi said China's pandemic response demonstrated the “superiority” of China's political system. In others, he has argued that “China is moving closer to the center of the world stage.”

And Bloomberg thinks “the president spoke from a position of strength.” China has been the only major economy to report growth amid the pandemic last year, and economists are forecasting an expansion of 8.3% this year, compared with 4.1% in the U.S.

So, we will see. The administration is facing numerous difficult transition objectives just now, including efforts to control the coronavirus and its impacts on the economy. Certainly, the links to China and the EU will eventually be of central importance and producers should watch closely as these key policy links are debated and implemented, Washington Insider believes.

Few Pending Regs at OMB in Wake of Biden Administration Review

Very few regulations remain under review at the Office of Management and Budget (OMB) as the Biden administration undergoes a review of prior and pending regulatory actions from the Trump administration.

There are currently no USDA regulations pending review at OMB, and prior regulations that were at OMB have been mostly withdrawn, including ones dealing with the Supplemental Nutrition Assistance Program (SNAP), the use of radio frequency identification tag for cattle and bison, and a final rule on imports of small ruminants relative to BSE.

Of five pending from EPA, the list still shows the 2021 biofuel and 2022 biodiesel proposed levels as being under review. The regulatory agenda from the Biden administration continues to take shape, but it is clear that many of their initial actions will be linked to likely altering any pending actions left from the Trump administration and then deciding how to proceed relative to regulations that were put in place over the past four years.

WSJ: China Seeking High-Level Meeting With New US Administration

China has continued to push for a meeting between top-level officials from both countries as the Biden administration continues to take shape, according to the Wall Street Journal (WSJ).

Beijing is pressing for a meeting of its top diplomat with senior aides to President Joe Biden to explore a summit between the two nations' leaders, the report said, citing people with knowledge of the initiative. The proposal, made soon after President Xi Jinping congratulated Joe Biden on his election victory, was through letters by the Chinese ambassador to the U.S., Cui Tiankai, and through conversations with intermediaries, the WSJ noted.

Beijing raised the idea starting in December of dispatching Yang Jiechi, a member of the Politburo, the Communist Party's top decision-making body, to Washington. Yang plans to focus on climate change, the pandemic and getting an initial meeting between Biden and Chinese President Xi Jinping, with the focus shifted away from trade — the issue that has dominated Sino-U.S. relations.

Biden, however, has said he would meet first with allies to discuss issues including how to jointly confront China. He has already spoken with Canadian Prime Minister Justin Trudeau and others. The WSJ said Chinese officials believe that the Biden administration will eventually want to renegotiate the U.S.-China Phase One trade deal, but it added it is unclear whether Biden's choice for U.S. Trade Representative Katherine Tai will push for enforcement of the Phase One deal or press for a new round of negotiations.

Given that the Biden administration has made the U.S. economy a priority and trade has been relegated to a lower focus, and the administration's signal that it wants to enlist U.S. allies to take on China, a top-level meeting is not expected to take place soon.

Tuesday Watch List

Markets

Traders continue to watch the latest weather forecasts, including winter storms across the U.S. and will take a time out at 8 a.m. CST to see if USDA has an export sale to announce. The only official report on Tuesday's docket is an index of U.S. consumer confidence, due out at 9 a.m. CST.

Weather

Moderate to heavy snow will cover much of the Midwest Tuesday. The snow will create transportation and safety issues and be stressful to livestock. We'll also see areas of rain in the Southeast. Snow forming in the Southwest will move into the southern Plains during Tuesday-Wednesday. Northern areas will be cold and dry.

New Swine Fever Virus Affecting Chinese Herds

Industry insiders tell Reuters that a new form of African swine fever is popping up on Chinese pig farms. The timing is not good for the world’s biggest pork producer that’s still trying to recover from a devastating epidemic. Two new strains of African Swine Fever have infected over 1,000 sows on several farms owned by China’s fourth-largest pork producer. It’s also showing up in pigs being fattened for the firm by contract farmers. A company spokesperson says the disease isn’t quite the same as the wild African Swine Fever Virus because the new variant doesn’t kill the large number of pigs that China lost in 2018 and 2019. The new strain causes a chronic condition that reduces the number of healthy piglets born to sows. But infected pigs are culled from herds to prevent the spread, which makes the disease ultimately fatal. Many Chinese farmers turned to unapproved products to help protect their animals. Chinese experts fear the illicit vaccines created accidental infections that have begun to spread. There’s no approved vaccine for ASF, which is not harmful to humans.

JBS Offers Bonuses to Workers Who Get Vaccinated Against COVID-19

Meatpacker JBS and chicken company Pilgrim’s Pride Corporation say they’ll pay 100 dollars to American workers who voluntarily get the COVID-19 vaccine. Yahoo News Dot Com says thousands of U.S. meatpacking workers were infected last year, so the bonus will hopefully encourage employees to get the inoculations. COVID outbreaks temporarily halted most meat production in the spring of 2020, which pushed meat prices higher as supplies tightened up on consumers. Company surveys already show that between 60 and 90 percent of their employees at different facilities were willing to be vaccinated. The companies launched educational efforts to promote the vaccine as a positive step for their employees, some of whom are immigrants from around the world. According to the U.S. Centers for Disease Control, food and agricultural workers will receive the vaccine during a later phase of the rollout, after healthcare workers and people over 75 years old. Rival company Tyson Foods said late last week that it will offer the vaccines on-site at its facilities, so employees can get inoculated while they’re at work.

Farm Bureau Report Recommends Improvements at NASS

A new report from the American Farm Bureau lays out several recommendations to improve the way the National Agricultural Statistics Service collects surveys and reports data. It also gives recommendations to improve accuracy and farmer confidence in the survey results. The USDA-NASS Working Group made up of 10 farmer-members, spent over four months looking at the processes and methodologies that USDA-NASS uses to put farmer survey data into monthly reports. The recommendations include increasing transparency on how the agency arrives at the numbers reported and providing clarity on the relationship between aggregate, state, and field-level reported numbers. Farm Bureau would also like to see the agency accelerate its adoption of new and innovative technologies. Farm Bureau also wants to work closely with NASS in a variety of ways, including working to encourage farmers’ accurate and timely participation in NASS data collection. “We hope the work done by this group will provide a framework for USDA to make timelier adjustments to these key reports and restore trust in the data we’ve relied on for a long time,” says AFB President Zippy Duvall.

Biodiesel Industry Looking for Progress in 2021

During the recent National Biodiesel Conference and Expo, the National Biodiesel Board celebrated the industry’s many achievements in the face of adversity. The NBB hosted more than 550 biodiesel and renewable diesel producers, distributors, retailers, and other industry advocates and partners to talk about the direction of the industry. The NBB has set a goal of six billion gallons of production by 2030. “Our industry has seen its fair share of challenges over the years, but I am proud to say that the biodiesel and renewable diesel industries never gave up, even in the middle of a pandemic,” says NBB CEO Donnell Rehagen. “Our members continually beat expectations year after year, and there’s a lot to be excited about as we move forward.” The group shared updates from each of its core program areas, including federal affairs. “Emerging proposals in Washington that would decarbonize the energy and ag sectors, modernize transportation infrastructure, and incentivize research and development can provide new market opportunities for biodiesel,” says Kurt Kovarik, NBB Vice President of Federal Affairs. The group also discussed state programs that are driving demand for a low-carbon future, as well as sustainability, communications, and outreach and development programs.

Benham Elected Acting Chair of CFTC

The Commodity Futures Trading Commission announced that it unanimously elected Commissioner Rostin (RUSS-tin) Behnam as acting chairman. The Hagstrom Report says Behnam succeeds Heath Tarbert, who served as chair since July of 2019, and who will remain as a commissioner until 2024. Behnam says the work of the CFTC is critical to supporting the stability and growth of the American economy through strong oversight and regulation of the derivatives markets. “As a commissioner, I’ve focused on making sure our rules emphasize protecting customers, look into potential systemic risks in the markets, and gaining a better understanding of what regulators can do to address climate-related financial market risk,” Behnam says. “I’m grateful to my fellow commissioners for their support.” Senate Ag Committee Chair Debbie Stabenow says she’s been impressed with Behnam’s proactive work to protect the economy from the urgent impacts of climate change. “He’s been a vigilant advocate for Wall Street reform to hold bad actors accountable,” she says. “I look forward to working with him to continue protecting the families, farmers, and the businesses that rely on our agricultural and financial markets.” Behnam previously worked for Stabenow before becoming a CFTC commissioner in 2017.

Groups Oppose the SAFE Rule

A group of farm, biofuels, and environmental organizations filed a court brief objecting to the Safer Affordable Fuel Efficiency Vehicle Rule. Their objection is based on grounds that it both fails to account for toxic pollution from aromatic-laden fuels and ignores the important role that ethanol can play in improving fuel efficiency and reducing greenhouse gas emissions. The rule was finalized last April by the Environmental Protection Agency and the National Highway Traffic Safety Administration. It reversed an Obama-era rule that called for a five percent improvement in vehicle efficiency. In place of that, the SAFE rule established a much smaller 1.5 percent increase in vehicle efficiency each year for light-duty vehicles. The brief was led by the National Farmers Union and includes support from the Clean Fuels Development Coalition, the Governors’ Biofuels Coalition, and several other industry stakeholders. “As written, the SAFE rule puts the interests of oil corporations ahead of those in the renewable fuel industry, the environment, and the public at large,” says NFU President Rob Larew. “It will increase our overall emissions, delay the development of renewable fuels, all of which erodes air quality, contributes to climate change, to health risks, and increases the cost of fuel for consumers.”

Washington Insider: Renewed Fights Over Clean Air and Carbon Issues

Bloomberg is reporting this week that President Joe Biden has teed up a “slew” of clean air and carbon issues and made them “top environmental priorities” for his administration in a new executive order signed this week. The directive affected dozens of Trump-era rules, including carbon emissions, clean air rollbacks, and Clean Air Act rules on science and costs.

However, Bloomberg also argued that “any bold standards Biden has in mind to stem emissions from industry through the Clean Air Act will almost certainly get challenged in court.”

The unending cycle of rulemakings followed by years-long lawsuits is a signal that the Clean Air Act needs to be amended to give the executive more direct authority, Schiff Hardin LLP environmental partner Jane Montgomery said. “Hopefully, with Biden's experience in Congress, he can recognize that lawsuits are a result of bad law,” she said.

Biden may have to choose between innovative actions or traditional “nuts and bolts” regulation under the statute in order to avoid defeat in a 6-3 conservative Supreme Court skeptical of broad agency powers, Loyola University New Orleans Law Professor Robert Verchick said. “It's going to be a lot harder to do more flexible, ambitious, and innovative programs under these older laws because the court, I don't think, is going to have the appetite for it,” he said.

The report focused on what it called the most “closely watched air issues” on President Biden's to-do list.

In addition, it noted that the U.S. Court of Appeals for the District of Columbia Circuit handed the new administration a huge win Jan. 19 when it struck down President Donald Trump's carbon rule for coal-fired power plants. The new White House now has a fresh start to craft greenhouse gas standards for existing sources.

The DC Circuit opinion affirmed Obama-era justifications for regulating power plant carbon under the Clean Air Act, but Hana Vizcarra, a staff attorney at Harvard Law School's Environmental and Energy Program, says she is not expecting what was called “Clean Power Plan 2.0.”

“Even the ambitions of the Clean Power Plan were limited compared to what the ambitions of this administration are,” she said.

Companion performance standards for new plants were released by the outgoing administration earlier this month. Though the standards were left unchanged from 2015 levels, the Trump administration added a new threshold that sources must meet in order to be regulated under the rule.

States and groups quickly launched legal challenges against the most recent rulemaking, claiming the new threshold was added illegally without proper public input. And Biden asked the EPA to swiftly reexamine Trump rules on scientific considerations and cost-benefit analyses under the Clean Air Act.

Both rules put limits on how scientific research and cost and benefits are weighed under the statute, which critics worry could further hem Biden's ability to craft new air regulations. The new cost-benefit rule finalized late last year would require agencies to analyze a rule's primary targeted benefits separately from co-benefits like reducing greenhouse gas emissions. The newly finalized science rule puts a limit on how much weight agencies can give nonpublic scientific data in rulemaking analysis.

Also on the “chopping block” is a rule that scraps enforcement of a decades-old policy locking in toxic air pollution controls for large facilities. The Clean Air Act requires large refineries and other facilities to always be regulated under the maximum toxic air standards if they qualify as a major source. Trump's EPA crafted a rule that would let those sources off the hook if they managed to lower their emissions — a policy that is expected to be reviewed early in the new administration.

Bloomberg also notes that environmentalists are calling on the Biden administration to boost national ambient air quality standards, also called NAAQS, after the previous administration's refusal to beef up protections against dangerous levels of soot and smog pollution.

Groups say that stronger NAAQS and the “once in always in” rule are particularly important in stemming the disproportionate air pollution burden carried by communities “on the fence line” of industrial facilities — often comprised predominately people of color.

Although it was still enmeshed in lengthy legal battles, Trump administration softened rules on tailpipe greenhouse gas emissions and these are also likely on the Biden administration's radar.

The two-part Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule scrapped California's historic waiver to set its own vehicle emission standards and pared back fuel efficiency standards for car manufacturers from 5% to 1.5%. The new administration's order says agencies “should consider the views of representatives from labor unions, States, and industry” when evaluating the rule.

Finally, Bloomberg says the new EPA is set to examine emissions regulations for the oil and gas sector on methane, a highly potent greenhouse gas. The Trump administration last year scrapped 2016 methane leak monitoring requirements. The move was celebrated by smaller producers, though some large oil and gas companies in compliance with the Obama-era requirements criticized the rollback.

Judges refused to put the rule on ice after environmentalists sued to freeze implementation. Legal challenges currently pending on Trump's methane, tailpipe, and other emissions rules could be declared moot when the new Biden administration starts new rulemaking.

So, we will see. Clearly, the new administration is pressing for additional environmental rules, in part to replace those recently abandoned but also to impose tighter regulations in support of increasing environmental quality. These will be generally controversial and should be watched closely as they are proposed and litigated, Washington Insider believes.

New Acting Chief at CFTC Selected

The Commodity Futures Trading Commission (CFTC) unanimously elected Commissioner Rostin Behnam as acting chairman. Behnam succeeds Heath Tarbert, who has served as chairman since July 15, 2019, and announced his departure from the role on Thursday.

Tarbert remains a commissioner, serving a term expiring on April 13, 2024. He is on a list of those that may be in the role permanently.

Farm Bureau Urges More Transparency, Adoption Of New Technology To Boost Confidence In NASS Data

More transparency of the data released by the National Ag Statistics Service (NASS) and adoption of new and innovative technology would help improve confidence in the agency's estimates, according to a report from the American Farm Bureau Federation (AFBF).

The group also said that the agency needs to deploy even faster computers and needs more resources to boost its development of more-innovative ways of data gathering and analysis.

The group also pledged to work with NASS to help the effort to bolster their data, including what the group said was a key: “Finally, and most importantly, Farm Bureaus across the U.S. should actively work to encourage farmers' accurate and timely participation in NASS data collection efforts.”

AFBF put the working group together after its members voted to have the group study the NASS data collection and reporting methodologies in the wake of surprise data releases from NASS in 2019 in the wake of flooding and weather-related planting delay

Monday Watch List

Markets

Back from the weekend, traders will check the latest weather forecasts and watch for any new export sales announcements at 8 a.m. CST. USDA's weekly report of grain export inspections is due out at 10 a.m. CST, followed by a monthly cold storage report at 2 p.m. Some state NASS offices have Crop Progress reports scheduled for Monday afternoon, but there are no significant economic reports on the docket.

Weather

A snowstorm is in store for the central Plains and much of the Midwest Monday through Tuesday. Heavy snow, cold air and strong winds will be hazardous for transportation and will be stressful to livestock. The snow will offer benefits to southern Plains winter wheat. We'll also see moderate to heavy rain develop in the Delta and portions of the southern Midwest. Some far northern areas will have wind chill issues due to an incursion of cold air.

Biden Names Acting Federal Agency Leaders

President Joe Biden designated acting leaders to federal agencies to oversee the government until his political appointments are confirmed upon taking office. Biden assigned Kevin Shea as the acting Agriculture Secretary. Shea will assume the duties until the Senate confirms Biden’s pick, Tom Vilsack, for the top post at USDA. Shea has been administrator of USDA’s Animal and Plant Health Inspection Service since 2013. Vilsack is well-known to agriculture, serving as the Obama administration’s Agriculture Secretary. Biden also appointed Jane Nishida (nah-she-dah) as acting administrator of the Environmental Protection Agency. She is the Principal Deputy Assistant Administrator in the EPA Office of International and Tribal Affairs. She will assume the duties until Michael Regan, Biden’s pick to head the EPA, can be confirmed. Regan spent more than nine years working for the EPA under the Clinton and Bush administrations, and eight years at the Environmental Defense Fund. Regen has spent the last four years leading the North Carolina Department of Environmental Quality.

USDA Announces Three Deputy Undersecretaries

The Department of Agriculture Thursday announced three senior appointments. USDA named nutrition policy expert Stacy Dean as deputy undersecretary for food, nutrition, and consumer services. Before joining USDA, Dean served as vice president for food assistance policy at the Center on Budget and Policy Priorities in Washington, D.C. USDA also announced Justin Maxson, CEO of the Mary Reynolds Babcock Foundation, as deputy undersecretary for rural development. The Mary Reynolds Babcock Foundation is an organization that works toward poverty alleviation and economic justice in southern states. USDA also announced Mae Wu as deputy undersecretary of marketing and regulatory programs. Before joining USDA, Wu served as a senior director at the Natural Resource Defense Council, helping to lead its health and food work. Katharine Ferguson, chief of staff in the Office of the Secretary, says, “We are honored to have professionals of the caliber of Stacy, Justin and Mae join our team.”

D.C. Circuit Court Stays Last-minute EPA Waivers

The U.S. Court of Appeals for the D.C. Circuit ordered a temporary block to last-minute small refinery waivers issued by the Trump administration. The stay is in response to an emergency motion filed Tuesday evening by the Renewable Fuels Associations. Thursday, the court ordered that the Environmental Protection Agency action to grant three small refinery petitions must be “administratively stayed pending further order of the court.” The order prevents EPA from further processing the small refinery exemptions, at least until the court has had “sufficient opportunity to consider the emergency motion for stay.” EPA has until February 3 to respond to the motion, and any replies are due to the court by February 10. The stay was issued roughly 36 hours after EPA approved two 2019 waiver petitions and one 2018 petition, which—if allowed to stand—would waive another 260 million gallons of Renewable Fuel Standard blending requirements. RFA President and CEO Geoff Cooper says, “We took this action immediately to prevent the agency from doing further economic damage.”

Republican Senators Criticize Biden Action on Keystone XL Pipeline

Following the executive orders signed by President Joe Biden, a group of Republican Senators announced opposition to the halting of construction of the Keystone XL Pipeline. The effort was led by Senator Steve Daines of Montana and Republicans from Idaho, Wyoming, Kansas, Oklahoma and North Dakota. Several other western senators are expected to sign on to legislation Daines will introduce to authorize the pipeline's continued construction. In a statement, the Senators say, “It’s only day one, and with the stroke of a pen, Biden has already taken steps to kill American energy projects.” The Senators claim revoking the Keystone XL Pipeline will drive up the price of gas at the pump, cost thousands of jobs, crush the energy industry and put the country back on a path to dependence on foreign oil. The pipeline is also a priority for Canada. President Biden is expected to meet with Canadian Prime Minister Justin Trudeau by phone Friday.

Tyson Agrees to Price-Fixing Settlement

Tyson Foods this week agreed to $221.5 million to settle claims related to price-fixing lawsuits. The settlements are with three consumer and commercial purchasing groups who bought chickens directly from Tyson and require a federal judge's approval. Tyson did not admit liability in agreeing to settle and said the payments will be reflected in its first-quarter financial statements, according to Reuters. The company still faces price-fixing claims from large corporations, including Chick-fil-A, Walmart and Sysco. Earlier this month, Pilgrim’s Pride agreed to a $75 million settlement in the litigation. Sanderson Farms and Perdue Farms are also included in the litigation. The lawsuit claims chicken producers have conspired since 2008 to inflate prices through tactics such as restricting production and sharing nonpublic data about supply and demand. The U.S. Department of Justice in April of 2019 subpoenaed major chicken firms over the issue. The investigation followed a private antitrust suit brought in 2016 by chicken buyers seeking damages from major producers who allegedly conspired to raise prices.

Former Agriculture Secretary Perdue Privileged to Serve Farmers

In modern societal norms, perhaps leaving your employer is not official until announced on social media. Former Agriculture Secretary Sonny Perdue did so this week via Twitter. Perdue stated, “It has been a privilege to serve America’s farmers, ranchers, and producers the past four years." The Trump-era head of the Department of Agriculture promised to continue to fight for U.S. agriculture. Perdue highlighted his visits to farms in all 50 states, saying, "I have learned that while accents and commodities may vary, the heart of the farmer remains the same.” Perdue calls agriculture a selfless profession of men and women who strive to feed a growing population. Perdue added, “I want to thank President Trump for the opportunity he gave me to serve you. Let’s continue to do right and feed everyone.” Perdue served as Agriculture Secretary throughout the entirety of the Trump administration, along with several familiar names to Midwest agriculture in other USDA positions.

Washington Insider: Measuring Social Costs of Carbon

Bloomberg is wandering fairly deeply into the regulatory weeds this week as it notes that the Biden climate agenda is working now to measure the “social costs” of carbon. The report highlights that among President Joe Biden's first acts in office was the reassembly of a cross-government team to figure out this cost that Bloomberg calls a “wonky number with broad impacts on federal agency rules.” 

The president signed an executive order Wednesday directing a team to publish an interim estimate of the social costs of carbon within 30 days. Environmentalists and climate scientists agree that undoing the Trump administration's rules regarding how these costs are calculated and used will play a big role in federal policy, as well as in states that take their lead from the federal government.

Bloomberg explains that the issue is the estimated cost to society of releasing a ton of carbon dioxide, the main greenhouse gas, into the atmosphere. The revised metrics are to take into account everything from lost agricultural productivity to property damages from strong storms, to diminished fresh water availability – all because of climate change.

Measuring the cost to society – real and potential – from greenhouse gas impacts affects how regulators weigh the costs versus benefits of proposed rules. If a rule change would increase emissions, the social costs of carbon are multiplied by the number of extra tons of greenhouse gases expected and added to estimates of the rule's costs. If a rule would lower emissions, the figure derived gets added to the benefits ledger.

Actually, such calculations have been U.S. policy for some time, Bloomberg says. The Obama administration's Interagency Working Group on the Social Cost of Greenhouse Gases set the first federal social cost of carbon at $21 per ton. By the time President Obama left office in 2017, the figure had risen to $52 per ton.

However, President Trump disbanded the working group by executive order soon after taking office and his administration came out with new estimates that were as low as $1 per ton. A figure that low makes it easier for agencies to issue new regulations that are much more permissive because they can more readily find benefits that outweigh the costs.

Now, the new administration is reconstituting the former interagency working group, which pulls together experts from across the federal bureaucracy under the auspices of the White House Council of Economic Advisers and the Office of Management and Budget. The administration intends to estimate an “interim social cost” that ensures agencies are accounting for the full costs of pollution from carbon dioxide and other greenhouse gases, “including climate risk, environmental justice, and intergenerational equity,” Bloomberg says.

In June, the Government Accountability Office said the EPA under the Trump administration had arrived at much lower estimates because, among other things, it only considered domestic rather than global costs. It is almost certain that the Biden team will revert to the government's pre-Trump approach.

Michael Greenstone, an economics professor at the University of Chicago, said reverting to the Obama-era calculations would yield a social cost of carbon of $125 per ton, assuming it took into account lower interest rates in recent years.

Bloomberg notes that the working group will be housed within the executive office, so the president has latitude to put the team back together without involving Congress directly. The same is true of calculating new cost estimates.

Interagency task forces are a common approach for issues where more than one agency has a stake, said Naomi Oreskes, a climate science professor at Harvard University. And Biden wants climate considerations to be part of every agency's mission, not just the Environmental Protection Agency.

“That's not to say that the usual suspects won't get out their forces to try to undermine, challenge, or deny” the working group's new findings, Oreskes said. “In the past they always have.”

Any figure the Biden team comes up with almost certainly will be challenged extensively in court, so the new effort is expected to be defended through formal notice and comment procedures, Greenstone said.

Just now, the legal status of “social cost” estimates in executive decisions is somewhat uncertain. Judges have ordered a lot of additional climate analyses recently but haven't often dealt directly with the cost impacts of carbon. When environmentalists have sued to force agencies to use the metric in their environmental reviews, courts have often required additional analysis but deferred to agencies to decide which analytical tools to use.

The Federal Energy Regulatory Commission, for example, has for years rejected calls to consider the social cost of carbon in pipeline decisions, saying the metric is too speculative to be useful. Courts have largely accepted that, though groups are still pushing the issue in various cases.

In one major 2020 ruling, a federal judge delved into the technical aspects of the social cost of carbon and faulted the Trump administration for using an estimate that ignored global climate impacts.

So, we will see. The new administration appears to be quite serious about efforts to regulate impacts of climate change and can be expected to pursue a number of new rules for that purpose – including those concerning agriculture, which likely will continue to be highly controversial – and which should be watched closely by producers as they emerge, Washington Insider believes.

Biden Administration Halts All Pending Regulatory Actions

The incoming Biden administration has ordered a halt to all pending regulations that were not finalized before the end of the Trump administration.

That would include a handful of regulations from USDA, including the use of radio frequency identification (RFID) tags on cattle and bison.

This is a usual step that takes place in a change of administration and comes after a review of virtually all regulations promulgated by the Trump administration, including ones linked to the Waters of the U.S. (WOTUS) rule put in place by the Obama administration and revised by the Trump administration.

Temporary Leadership At USDA Named

As with other government agencies, a series of officials have been put into temporary roles at USDA while the Biden administration assembles its team. Kevin Shea is serving as acting Agriculture secretary while Tom Vilsack awaits Senate confirmation.

Shea has been the administrator of the Animal and Plant Health Inspection Service since 2013. Robert Bonnie, an advocate for creating an ag carbon bank at USDA, was named deputy chief of staff for policy and senior adviser for climate. He is a former USDA undersecretary for natural resources. Katharine Ferguson is USDA's new chief of staff. She held senior posts in the Obama administration.

Matt Herrick is the communications director for USDA, having left the International Dairy Foods Association. Herrick previously served as a spokesman for USDA and then for the U.S. Agency for International Development during the Obama administration.

Justo Robles, a Biden campaign official, will be the White House liaison. Robles was the campaign's deputy coalitions director in Georgia. Sara Bleich, a professor at Harvard's Chan School of Public Health, was named senior adviser to Vilsack for COVID-19.

Kumar Chandran, a former chief of staff to the department's undersecretary for food, nutrition and consumer services in the Obama administration, was named senior adviser to Vilsack on nutrition.

Friday Watch List

Markets

Friday morning starts with USDA's weekly export sales report at 7:30 a.m. CST, followed by a report on U.S. existing home sales at 9 a.m. The Energy Department's weekly natural gas inventory is set for 9:30 a.m. and other energy inventories follow at 10 a.m., including ethanol. At 2 p.m. CST, USDA releases its estimate of U.S. cattle on-feed for Jan. 1.

Weather

Light to moderate rain is in store for the Deep South and Southeast Friday. Other crop areas will be mainly dry except for light snow crossing the central Plains. Rain and snow are indicated for the Plains and Midwest later Saturday through Sunday. Temperatures have a more seasonally cold trend through the weekend.

Ag and Food Groups Welcome President Biden

Agriculture groups welcomed President Joe Biden to Washington, D.C., while looking forward to tackling current issues. American Farm Bureau Federation President Zippy Duvall says AFBF "congratulates President Joe Biden,” adding the same for Vice President Kamala Harris “as she makes history as the first woman to serve as America's vice president." Duvall laid out the issues facing rural America in his statement, including labor, broadband and sustainability goals, adding, "Let's get to work on solutions." National Farmers Union President Rob Larew says, “We stand ready to work with the Biden administration to ensure they are implemented in a way that supports the success” of farmers and ranchers. While congratulating Biden, American Feed Industry Association President and CEO Constance Cullman stated, “Our country is facing tough challenges, but just as a farmer does not give up on farming after a difficult growing year, we will not give up in our belief that we can and will meet these challenges.”

Biden Signs Executive Orders Following Inauguration

Day one of the Biden administration brought several executive orders signed by the President, including those reversing actions taken during the Trump Administration. President Joe Biden called for unity during his inauguration speech, stating, "We must end this uncivil war that pits red versus blue, rural versus urban,” before planning to sign 17 executive orders later in the day. Of note to rural America and agriculture, the actions include an executive order to rejoin the Paris Climate Agreement and to block the Keystone XL pipeline. Another executive order halts construction of the border wall by terminating the national emergency declaration used to fund it. Another action seeks to rejoin the World Health Organization. Additionally, the President took steps to extend COVID-19 policies around evictions and student loans.  Other actions include executive orders covering human rights, Immigration and ethics. However, his first action created a mask mandate on federal property and public transportation.

USDA Announces Key Staff Appointments

The Biden-era Department of Agriculture Wednesday announced the names of those who will hold senior staff positions in Washington, D.C. Gregory Parham was named Interim Deputy Assistant Secretary for Administration. Parham served as Assistant Secretary for Administration from 2013-2016. Katharine Ferguson was named Chief of Staff in the Office of the Secretary. Ferguson served in the Obama Administration as Chief of Staff for the White House Domestic Policy Council and as Chief of Staff for Rural Development at USDA. Robert Bonnie was named Deputy Chief of Staff for Policy and Senior Advisor for Climate. Bonnie led the USDA transition team for the Biden administration. Sara Bleich was named Senior Advisor for COVID-19. From 2015-2016, she served as a White House Fellow in the Obama Administration. Kumar Chandran was named Senior Advisor for Nutrition. He served as Chief of Staff to the Undersecretary for Food, Nutrition, and Consumer Services in the Obama Administration. And Justo Robles was named White House Liaison. Before joining USDA, Robles served as Georgia Deputy Coalitions Director for Biden for President.

China Hopeful for Better U.S. Relations with Biden Administration

With President Joe Biden taking over in Washington, D.C., China retired it’s claimed stance of improving relations with the United States. A Chinese government official stated Wednesday, “We are committed to developing a relationship with the United States.” That would include trade relations following the Trump trade war. Last week, The U.S. China Business Council called for an end to the trade war, stating failing to do so would cause both short-term shocks to company supply chains. China also issued sanctions on former Trump administration officials Wednesday, as President Biden was sworn into office. Those sanctions included Former Secretary of State Mike Pompeo, who was a vocal critic of China. When asked if the nation will miss Pompeo as an “easy target,” a Chinese Foreign Affairs spokesperson says, "Of course. He's such a good laughing stock. It's like a new drama every day. But I think he has done irreparable damage to the U.S. national image and reputation.”

RFA Files Petition and Emergency Motion to Halt Last-minute SREs

The Renewable Fuels Association filed a petition for review and an emergency motion to stay the effectiveness of three small refinery exemptions granted Tuesday. The Environmental Protection Agency announced the waivers with less than 24 hours remaining in the Trump administration. RFA’s emergency motion says, “EPA’s decision will inflict substantial, immediate, and irreversible harm.” Data released by EPA Tuesday evening show that the two 2019 compliance exemptions reduced that year’s RFS standards by 150 million gallons, while one 2018 exemption erased 110 million gallons of renewable fuel requirements. The total eliminated volume of 260 million gallons is equivalent to shutting down three or four ethanol plants for a full year, according to the Renewable Fuels Association. RFA President and CEO Geoff Cooper says the waivers "are completely without legal merit," adding the organization's request seeks to immediately prevent the agency from doing further economic damage to the ethanol industry.

Commodity Classic Announced Dates for Virtual Event

Commodity Classic has set the dates for its 2021 Special Edition, which will take place March 2-5, 2021, as a digital experience. Registration will open Tuesday, January 26, 2021, at CommodityClassic.com. The registration fee is waived for the first 5,000 farmers. All other registrants and farmers after the first 5,000 will be charged $20. The registration covers all online educational sessions and events and access to all archived sessions through April 30, 2021. Organizers say the digital experience will focus on providing educational sessions and farmer networking opportunities. Participating sponsors will showcase new products, services and innovation through a variety of online presentations, educational sessions and interactive discussions. Additionally, a lineup of agriculture thought leaders, top-yielding farmers, agribusiness representatives and Commodity Classic association leaders are expected to be on the schedule. In October, Commodity Classic announced that it was pivoting to a digital event due to restrictions related to the COVID-19 pandemic. The 2021 Commodity Classic was originally scheduled for San Antonio, Texas, in early March.