July 4th Cookout Cost Stable Compared to Year Ago

U.S. consumers will pay just a few cents less for their favorite Independence Day cookout foods compared to last year, including cheeseburgers, pork chops, chicken breasts, homemade potato salad, strawberries and ice cream. The American Farm Bureau Federation reveals the average cost of a summer cookout for ten people remains affordable at $59.50, or less than $6 per person. The cost for the cookout is down 16 cents, less than one percent, from last year, but eight percent higher compared to 2019. The largest year-to-year price increase was for strawberries. Survey results showed two pints of strawberries at $5.30, up 22 percent from last year, due to strong demand and the effects of several weather events, including severe rain, hail and high winds that caused significant setbacks to the harvest early in 2021. AFBF's summer cookout menu consists of cheeseburgers, pork chops, chicken breasts, homemade potato salad, pork & beans, strawberries, potato chips and fresh-squeezed lemonade with ice cream and chocolate chip cookies for dessert.

NPPC Urges Administration to Appeal Line Speed Court Ruling Before Deadline

 A federal district court ruling striking down faster harvest facility inspection speeds takes effect today (Wednesday, June 30). The Biden administration has until the end of August to file an appeal, as requested by the National Pork Producers Council. NPPC says the ruling will quickly lead to increased pork industry concentration and packer market power, and seeks waivers for the impacted plants until a longer-term solution, acceptable to all industry stakeholders, is achieved. Iowa State University Research shows the ruling eliminates 2.5 percent of pork packing plant capacity nationwide and will result in $80 million in reduced income for small U.S. hog farmers this year alone. NPPC President Jen Sorenson states, “NPPC continues to urge the administration to appeal before the ruling inflicts irreversible damage to small hog farmers and seismic changes to our entire sector.” Last week, more than 70 lawmakers sent letters asking Agriculture Secretary Vilsack and Acting Solicitor General Prelogar to appeal the court decision.

Over 1,000 Counties Approved for Emergency Haying and Grazing on CRP Acres

More than 1,000 counties are eligible for emergency Conservation Reserve Program haying and grazing. An American Farm Bureau Federation Market Intel analysis shows the most recently published list of counties with permitted haying and grazing on CRP land includes 1,021 counties, or 32 percent of counties. Primarily located in the West, 860 of those counties have been designated in 2021. In June alone, emergency haying and grazing on CRP acres was authorized in 196 counties. Between June 17 and June 24, 39 counties were added to the designation list, an increase of four percent in one week. Every week, USDA updates the map of counties eligible for emergency haying and/or grazing based on the U.S. Drought Monitor. Counties are approved for emergency haying and grazing when they are designated as level “D2 Drought - Severe” according to the U.S. Drought Monitor. The latest report shows 35 percent of the U.S. in D2 or worse drought, with 61 percent of the continental U.S. in some form of drought.

Strong Demand and Competitive Bidding Pushes Land Prices Higher

Interest in purchasing agricultural land has grown since a coronavirus pandemic-induced slowdown blanketed the land market last spring. Farmers are feeling more financially secure as strong commodity prices arrived on top of large government payments in 2020. This is propelling farmers to bid more aggressively for additional land than has been the case during the past six years, according to Farmers National Company. Individual investors, both first-time, and experienced buyers, are stepping into the land market as they search for a safe, long-term real estate investment in a low interest rate environment. The increase in ag land prices is happening in most areas of the Grain Belt and with most types of land. Higher land values will bring more sellers into the market as estates, trusts, recent inheritors, and family groups evaluate whether to sell the farm or ranch and capture the higher prices. An additional consideration is the uncertainty surrounding future tax policies, which may trigger a sale sooner rather than later for some.

AVMA supports legislation to strengthen dog importation requirements

The American Veterinary Medical Association Tuesday reaffirmed its support for the Healthy Dog Importation Act. The legislation is designed to reduce the spread of diseases that could be dangerous to human and animal health. The bill provides the Department of Agriculture with additional resources to monitor and safeguard the health of dogs brought into the United States. The goal is to ensure imported dogs are in good health and not a risk to spread disease. Representatives Kurt Schrader, an Oregon Democrat, and Dusty Johnson, a South Dakota Republican, Co-chairs of the Veterinary Medicine Caucus, reintroduced the legislation. The bill would require every imported dog to have a certificate of veterinary inspection from a licensed veterinarian confirming the dog is healthy and has received all vaccinations and passed all tests required by the USDA. More than one million dogs are imported into the U.S. each year, but less than one percent of these dogs are inspected for diseases.

Next COVID Casualty Could be Coffee

COVID-19 shockwaves could create a round of trouble for the coffee industry, according to Purdue University. Starting in the 2011-12 growing season, a powdery orange fungus called coffee leaf rust spread throughout Latin America and Central America, damaging crops on 70 percent of farms and causing more than $3.2 billion in damage. Coffee crop management programs helped growers mitigate the fungus. Now, the COVID-19 pandemic caused reduced management, and closed borders, limiting or eliminating movement of migrant workers essential for coffee harvests in Latin America and Central America. Without crops being harvested, profits fall further, and the feedback loop intensifies. Without efforts to eradicate coffee leaf rust, global coffee supplies could dwindle, making a cup of coffee more costly. Researchers suggest a number of measures that could help with rust issues, including sourcing coffee from more areas, including those not as severely impacted by the fungus and diversifying farms and livelihoods of coffee farmers.

Washington Insider: Trade Promotion Authority to Expire

July 1 will bring about the expiration of a trade policy tool used by several administrations for decades -- Trade Promotion Authority (TPA) which used to be known as "fast-track" trade authority.

So far, the Biden administration had not submitted legislation to Congress to reauthorize TPA. President Joe Biden should be familiar with the current version of TPA because it was approved by Congress and signed into law in June 2015 by President Barack Obama.

So what does TPA do? It allows an administration to negotiate a trade deal with a foreign country or countries, and bring the implementing legislation for the deal to the U.S. Congress for their approval via an up-or-down vote with no amendments possible.

The reasoning is that no country would likely want to enter into a trade deal with the U.S. if the 435 members of the House of Representatives and 100 members of the Senate could change the deal.

To be covered by TPA, the trade deal has to be negotiated during the time period for which TPA is in effect and it has to advance U.S. trade negotiating objectives that are spelled out in the TPA legislation.

Originally, the current version of TPA was only effective until July 1, 2018, but could be extended through July 1, 2021 if the president asked for an extension. President Donald Trump did that March 20, 2018. To have prevented the extension, Congress would have had to clear a disapproval resolution within 60 days of July 1, 2018. They did not.

The roots of "fast track" go back to the Trade Act of 1974. The term Trade Promotion Authority was adopted in the Bipartisan Trade Promotion Authority Act of 2002.

It was first used to enact the Tokyo Round Agreements Act of 1979 which implemented the 1974-1979 multilateral trade liberalization agreement that were reached during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT). That trade body was the forerunner to the current World Trade Organization (WTO).

TPA has been renewed four times -- 1979, 1988, 2002 and 2015. In 1993 -- a short-term extension was approved by Congress to allow the completion of the GATT Uruguay Round of trade negotiations. According to the Congressional Research Service (CRS), TPA has been used for 14 bilateral/regional free trade agreements (FTAs) and one additional set of multilateral trade liberalization agreements under GATT. One FTA was approved by Congress without TPA -- The U.S.-Jordan FTA. That deal was viewed as noncontroversial and only covered a small amount of U.S. trade.

In the current version of TPA, there are trade objectives spelled out that Congress included that they insist an administration follow if they want the trade deal to be implemented using the TPA rules. There are three categories of trade objectives in the current TPA, including (1) overall objectives; (2) principal objectives; and (3) capacity building and other priorities.

There are separate negotiating objectives for agriculture, 21 in total. The current version had three objectives added to the 18 that previously were a part of TPA. The three new ones covered trade relative to sanitary and phytosanitary measures, that trade negotiators had to make sure on transparency of tariff-rate quotas so they did not impede trade, and the third seeks to eliminate and prevent the improper use of geographical indicators, according to CRS.

As for the Biden administration, only USDA Secretary Tom Vilsack has indicated that TPA is needed. U.S. Trade Representative Katherine Tai, when pressed by House Ways and Means Ranking Member Kevin Brady, R-Texas, about whether the administration would be seeking a renewal of TPA, would only say Tai would only say that the administration wants to win bipartisan support for renewal and wants to rethink the objectives of trade agreements before seeking the authority.

The potential impacts if TPA is allowed to lapse would be on the UK and Kenya trade deal negotiations that were launched under the Trump administration. The Biden administration has only said it is examining those negotiations before deciding whether to move forward.

And, the Biden administration has made clear they are focused on enforcing existing trade deals, not negotiating new ones.

So we will see. TPA is a tool that has been used by both parties and letting it lapse has raised even more concerns about the trade focus for the U.S. and the situation needs to be watched closely, Washington Insider believes.

US-EU Civil Aircraft Dispute 'Solution' Still Reveals Tensions

Even as the U.S. and European Union (EU) agreed to a five-year suspension of trade action in the dual civil aircraft dispute involving Airbus and Boeing, the two clashed a bit during a WTO Dispute Settlement Body (DSB) session June 28 in Geneva.

The U.S. challenged the EU to provide status reports in the matter after the EU requested a status update on a separate trade issue. The U.S. said the EU was being contradictory in asking the U.S. for a status update over U.S. antidumping and countervailing duty transfers to the domestic industry under the Continued Dumping and Subsidy Offset Act of 2000.

The EU countered it is only required to provide status updates at certain stages in the dispute settlement process and the portion of the dispute related to Airbus was still pending appeal and therefore, they were not required to provide a status update.

This shows that even the "agreement" reached between the two sides, there is still a ways to go before the situation is totally resolved.

Potato Growers Push Biden Administration On Mexico Access

The National Potato Council (NPC) is calling on the Biden administration to keep pushing Mexico in the dispute over their potato import actions.

While a recent Mexican Supreme Court ruling was "significant progress" in the dispute, the NPC said, "there are serious concerns about the long-term prospects for successful market access for U.S. potatoes in Mexico." NPC contends that Mexico's potato cartel CONPAPA is "exerting great political pressure" to impede competition from the U.S.

They noted Mexico's SENASICA in April changed the U.S. fresh potato import protocol without notification to the U.S. and involves additional sampling of U.S. potatoes to be sent to a lab selected and paid for by CONPAPA. "The clear goal of this unilateral change is to manufacture a reason to close the market to U.S. fresh potatoes at some point in the future," NPC said in the letter to USDA Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai.

Vilsack is currently scheduled to meet with Mexican Agriculture Secretary Victor Villalobos Arambula in early August where issues on GMO corn, glyphosate and the potato trade situation are expected to be key topics

Wednesday Watch List

Markets

The private firm, ADP, reports on U.S. private sector job growth Wednesday at 7:15 a.m. CDT, an early hint of Friday's June unemployment report. The U.S. Department of Energy releases its weekly energy inventories at 9:30 a.m., followed by USDA's Acreage and June 1 Grain Stocks reports at 11 a.m. CDT. Grain traders will give USDA's reports plenty of attention, but will also be keeping an eye on the latest weather forecasts.

Weather

More showers are expected along a frontal boundary that is starting to shift around the Plains and Midwest Wednesday. The pivot point of this front around Missouri, which has seen flooding rains since the weekend, will have the best chance for seeing flooding today. More scattered showers are expected south and east of the front as well, which may continue to delay winter wheat harvest. Dryness north of the front will stress developing row crops in the Northern Plains while heat continues to bake the Pacific Northwest and Canadian Prairies.

Supreme Court Rejects Petition Against California Prop 12

The U.S. Supreme Court Monday denied a petition to review California’s Proposition 12. The denial was included in a batch of announcements by the Supreme Court. Earlier this month, the North American Meat Institute supported its petition, stating the law “provides no benefit to consumers and increases breeding sow mortality.” The Meat Institute file the petition in February, challenging the constitutionality of California’s Proposition 12: The Farm Animal Confinement Initiative. In March, 20 state attorneys general filed a brief with the Supreme Court supporting the petition. The California law establishes minimum space requirements based on square feet for calves raised for veal, breeding pigs, and egg-laying hens and bans the sale of animals confined to areas below minimum square-feet requirements. The primary issue raised by NAMI and states is that the law extends to producers located outside of California, imposing "crushing burdens on out-of-state farmers and producers who have no political voice to shape the regulations.”

USDA Amends the National List for Organic Livestock And Handling

The Department of Agriculture announced changes to the National List of Allowed and Prohibited Substances in organic livestock production. USDA’s Agriculture Marketing Service is finalizing three amendments to the National List. Published in the Federal Register Friday, the final rule provides additional options for organic farms and businesses, by adding three substances to the list of substances allowed for organic production and handling. The final rule allows oxalic (ok-sal-ik) acid as a pesticide for use in beekeeping, nonorganic pullulan (pull-you-lan) for use in dietary supplements with "made with organic" claims regarding capsules and tablets, and collagen gel as a casing for organic products like sausages. Once effective, producers and handlers of organic products will be allowed to use these substances in organic production and organic products. USDA says the changes are based on public input and the April 2019 National Organic Standards Board recommendations. The final rule takes effect July 26, 2021.

House Republicans Sound Alarm on Plan to Navigable Waters Protection Rule

Top Republican leaders in the House of Representatives warn that the Environmental Protection Agency may be returning to the Obama-era Waters of the United States definition. In a letter to EPA Administrator Michael Regan announced Friday, the members outlined their concerns regarding the intention to rewrite the Navigable Waters Protection Rule. The Members wrote, “With all the other crises confronting our nation it makes little sense to unravel a final rule that has taken decades of Agency action, litigation, and legislation to settle.” They urged the EPA and Army Corps not to ignore the input of the general public, small businesses, Federal and state agencies, and the rest of the regulated community to create another rule that provides less regulatory certainty for the involved stakeholders. Representatives David Rouzer, Glenn GT Thompson, Kevin McCarthy, Sam Graves and Cathy McMorris Rodgers, along with Bruce Westerman and Blaine Luetkemeyer and others, signed the letter.

China Plans Pork Purchases for State Reserves

Chinese officials announced Monday a plan to buy pork for state reserves to support prices, which rebounded sharply after reaching a two-year low recently. Hog prices in China, the world's top pork-producing nation, plunged 65 percent in the first half of 2021 as disease outbreaks triggered panic selling, according to Reuters. China reports average weekly prices entered an “excessive decline” last week. However, China does not disclose how much pork is in state reserves or how much new purchases will total. A Rabobank analyst told Reuters, "Since the frozen pork inventory is probably already high due to strong imports in the previous months, I don't think they'll buy too much." China last made pork purchases in February and March of 2019, totaling 200,000 metric tons. So far in 2021, China has imported nearly two million metric tons of pork, up 13.7 percent. The purchases followed a record 4.4 million metric tons last year.

New Beef Processing Facility Announced in Iowa

Cattlemen’s Heritage plans to build a $325 million beef processing plant in southwest Iowa. The facility will employ 750 people with a target to begin operations in late 2023, according to the Des Moines Register. Cattlemen’s Heritage, a newly formed company, plans to build the facility near Council Bluffs to process 400,000 head of cattle annually. Investor Chad Tentinger told the newspaper weak cattle prices, strong consumer demand, and available investment capital that had been sidelined during the COVID-19 pandemic helped drive the decision to build the facility. The facility expects to process cattle from Iowa, Nebraska, and South Dakota. The facility helps address the issue of cattle processing capacity in the United States, a hot topic in agriculture today. The four largest meatpackers in the United States process roughly 85 percent of the nation's beef supply. Disruptions in beef cattle markets started in 2019 when a fire halted beef processing at a Tyson Foods facility in Holcomb, Kansas.

Gas Prices Resume Increase

After declining last week, the nation’s average gas prices have begun to climb again, rising 2.5 cents per gallon from a week ago to $3.09, according to GasBuddy. The national average now stands 4.7 cents higher than a month ago and 92.1 cents higher than a year ago. The national average price of diesel has risen 2.3 cents in the last week and stands at $3.24 per gallon. Gas Buddy’s Patrick De Haan states, “As we approach July 4, it appears the only way forward is for gas prices to continue to rise as Americans’ demand for gasoline continues to act as a catalyst.” Crude oil inventories saw another plunge last week, falling 7.6 million barrels and now stand six percent under the average for this time of year. Gasoline inventories also dipped, dropping 2.9 million barrels. U.S. gasoline demand fell slightly after reaching new records for consecutive weeks. Nationally, weekly gasoline demand fell 2.1 percent.

Washington Insider: China Firms Scale Back Investment in US

Each year, the China General Chamber of Commerce-USA releases a survey of Chinese businesses that operate in the U.S., and this year it showed a decline in their level of investment in the U.S.

About 39% of Chinese companies saw their investment in the U.S. drop so far in 2021, compared with 17% last year, the survey said. It was taken in March and April with a sampling of 183 respondents. Only 12% of the Chinese businesses increased their investment, Bloomberg reported, down from 23% in 2020 and 39% in 2018. The figures from 2018 are notable as that was just ahead of the Trump trade war launched against China in the form of tariffs, etc.

Of course, COVID factored into the situation. "Respondents suggested revenue and profitability suffered in 2020 due to a tougher business environment in the U.S., primarily related to COVID-19," the report said. "The pandemic's impact was negative for most but varied by sector. Expectations on when revenue and profitability will return to pre-pandemic levels vary by sector, as well, but generally, Chinese companies surveyed are somewhat more positive on the near-term economic outlook than they were last year."

But there were other themes running through the data. The Biden administration has not greatly altered the U.S. policy toward China, and in some respects, it perhaps has been tightened compared with the actions from the Trump administration.

And Chinese companies operating in the U.S. have felt these impacts as the report said that 79% said the investment and business environments have worsened, the highest level since at least 2018. One year ago, that level stood at just 55%.

"Chinese companies indicated they continue to adapt to changing U.S. government policies and enforcement priorities at the federal and state levels," the report stated. "After several years of enhancing employee training and working with third-party organizations, Chinese companies reported they are also prioritizing strengthening their compliance systems and procedures to navigate what is perceived to be a complex legal and regulatory environment in the U.S."

Even though there was still a level of optimism with Chinese companies operating in the U.S., the report said that only 43% expected higher revenues over the next two years, down from 57% in 2020 and 63% in 2019. Almost 20% of those surveyed predicted lower sales.

And that outlook has fallen since 2015. In 2015, over 60% viewed the environment positively in the U.S. positively and only 4% held a negative view. "This year, only about a quarter (27%) held positive views, whereas 40% held negative views," the report said.

And they noted things are perhaps a little less certain in terms of U.S. rules and regulations, an interesting observation given the rapid-fire changes in U.S. policy toward China that took place during the Trump administration. "This year, the top compliance challenges faced by surveyed Chinese companies shifted from lack of knowledge on relevant laws and regulations to navigating perceived complicated laws and regulations and potential conflicts between U.S. and Chinese laws and regulations," the report said.

The survey showed lessening levels negative effects of U.S. government policies or positions, with 73% citing tightening work visa authorizations or immigration policies. That level stood at 76% in 2020. High tariffs on Chinese products were cited by 59% in 2021 while that stood at 73% in 2020. Two new options were added for companies, including general economic and trade sanctions where 58% said that was a factor, with 35% citing export controls and 28% cited the Holding Foreign Companies Accountable Act.

Bloomberg pointed out that the Biden administration has been "adding more Chinese firms to blacklists, sending more warships through the Taiwan Strait, barring solar imports from Xinjiang and pressing Beijing on Hong Kong and new investigations into the origin of the COVID-19 pandemic."

But despite those actions, 65% of those surveyed said the year-over-year challenges in conducting business in the U.S. reflected "complex China-U.S. relations." By contrast, that was labeled as a challenge by 74% in 2020 and 75% in 2019.

So we will see. It's interesting that even though little has changed in terms of U.S. policy toward China and some areas have been more restricted, Chinese businesses remain optimistic. Still, this is an area that needs to be watched closely as the China-U.S. relationship unfolds, Washington Insider believes.

USDA Raises Food Price Inflation Outlook

Consumer food costs are increasing and USDA has raised its forecast for overall food price inflation and its outlook for food at home (grocery store) and food away from home (restaurant) prices. Overall food price inflation is now seen at 2.5% to 3.5% in 2021, up from their month-ago outlook that food price inflation would be 2% to 3%. Grocery store prices are now seen rising 2% to 3% in 2021 compared with their month-ago outlook that grocery store price would rise 1.5% to 2.5%.

Restaurant prices are now seen up 3% to 4% from 2020 levels, an increase from the prior outlook that they would increase 2.5% to 3.5%.

The updated forecasts also mean that prices are seen rising for all three categories by more than their 20-year average. Those averages are 2.4% for all food prices, 2.8% for restaurant prices, and 2% for grocery store prices.

However, it is important to note that leading up to 2020 and now 2021, consumers saw grocery store prices either increasing at less than the 20-year average or decreasing over the 2015 to 2019.

Republicans Note Concerns Over WOTUS Redo

House Republicans sent a letter to EPA Administrator Michael Regan and acting Assistant Secretary of the Army for Civil Works Jaime Pinkham outlining concerns with the administration's intention to undo the Trump administration's Navigable Waters Protection Rule.

The EPA on June 9 said it and the U.S. Army Corps of Engineers plan to launch rulemakings to restore the pre-2015 definition of the waters of the United States (WOTUS) under the Clean Water Act.

"We are concerned that the approach the Agencies intend to take in re-vising this important regulation will regress from the clarity provided by the Navigable Waters Protection Rule and will reimpose a vastly overbroad interpretation of federal jurisdiction over waters around the Nation," the lawmakers said.

Tuesday Watch List

Markets

Trading in grains is apt to be quiet ahead of Wednesday's USDA reports. A report on consumer confidence is the only thing on Tuesday's docket, set for 9 a.m. Traders will continue to watch over the latest weather forecasts and any news of export sales. Any news of change in biofuels policy has also put traders on edge lately.

Weather

The front that has remained stationary from West Texas to Lower Michigan over the past couple of days continues on Tuesday, producing showers along the front that could result in flooding. Behind the front, scattered showers are expected except in the Northern Plains, where conditions are becoming drier, a trend that will continue for the rest of the week as the front pushes southeast.

Supreme Court Delivers Blow to Ethanol Industry

A Supreme Court ruling Friday left the biofuels industry disappointed. The Supreme Court overturned a 2020 appellate court ruling that struck down three small refinery exemptions granted by previous Environmental Protection Agency administrators. However, because certain elements of the appellate court ruling were left unchallenged and were not reviewed by the Supreme Court, the groups remain optimistic that the Biden administration will discontinue the past administration’s “flagrant abuse” of the refinery exemption program. A coalition, including the Renewable Fuels Association, National Farmers Union, National Corn Growers Association, and the American Coalition for Ethanol, responded, “we will not stop fighting for America’s farmers and renewable fuel producers.” The decision stems from a May 2018 challenge brought against EPA in the U.S. Court of Appeals for the Tenth Circuit by the coalition. The petitioners argued that the small refinery exemptions were granted in direct contradiction to the statutory text and purpose of the RFS.

NCBA Welcomes House Processing Capacity Bill

Introduction of the Butcher Block Act in the House of Representatives last week received a warm welcome from the National Cattlemen’s Beef Association. The legislation would establish a stand-alone loan program through the Department of Agriculture to help processors expand capacity, improve marketing options for cattle producers and encourage competitive markets and pricing for live cattle. The supply of live cattle and the demand for U.S. beef are both strong, but a lack of processing capacity or "hook space" has stifled producer profitability. The legislation authorizes the Agriculture Secretary to establish a grant program that would support a range of research and training efforts aimed at strengthening the workforce to meet labor needs, and helping processors become federally inspected to increase capacity. NCBA President Jerry Bohn says the legislation “addresses both of those hurdles, and would go a long way to alleviating the bottleneck that is depressing live cattle prices for our farmers and ranchers.”

Lawmakers Ask Biden Administration to Help Hog Farmers

More than 70 lawmakers late last week asked the Department of Agriculture to stop a recent court order the National Pork Producers Council says will cause harm to hog farmers. Lawmakers made the request in a letter led by Iowa Republican Senator Chuck Grassley and Minnesota Republican Representative Jim Hagedorn. The letters call on the Biden administration to appeal a recent federal district court ruling striking down pork harvest facility line speeds allowed under USDA New Swine Inspection System. NPPC claims the order will lead to pork industry concentration and increased market power for plant operators at the expense of small hog farmers. NPPC President Jen Sorenson states, “While the administration can appeal the court’s decision until the end of August, the damage to U.S. pork producers will be immediate.” Pork Industry Economist Steve Meyer says the order “reduces competition because the impacted plants will process fewer hogs, leaving more pigs available to other packers.”

Top House Ag Republican Opposes Growing Climate Solutions Act

The top Republican on the House Agriculture Committee opposes the Growing Climate Solutions Act passed by the Senate last week. Representative Glen GT Thompson, a Republican from Pennsylvania, says the bill is a “big-government solution in search of a problem.” The Senate passed the bill last week, with support from many agriculture groups. However, Thompson says, “The consequences of government intrusion into voluntary carbon markets have not been adequately explored and Congress should continue educating itself and vetting these issues before legislating.” However, Senate Agriculture Committee Chair Debbie Stabenow called the bill a “win-win for farmers.” The legislation proposes a certification program at USDA to mitigate technical entry barriers to farmer and forest landowner participation in carbon credit markets. The bill also creates an online resource for farmers looking to connect with experts and establishes an Advisory Council to provide input to USDA and ensure the program remains effective and works for farmers.

Ag, Manufacturing Groups, Welcome Infrastructure Framework Progress

The White House released the framework of an infrastructure package last week, supported by equipment manufactures and soybean farmers. The $1.2 trillion framework includes $109 billion for roads and bridges, $65 billion for broadband infrastructure and $7.5 billion for electric vehicles infrastructure. The plan to overhaul the country’s transportation, water and broadband infrastructure would invest resources proposed in President Joe Biden’s American Jobs Plan. The American Soybean Association, a long-standing advocate of investments for ports, waterways and road transportation, welcomed the announcement. ASA President Kevin Scott says, “We are thankful to see these issues prioritized and that the plan avoids tax provisions that would negatively impact farmers and their families, such as drastic changes to stepped-up basis.” The Association of Equipment Manufacturers welcomed the details, but stated, “the job is not done.” AEM’s Kip Eideberg says, “Despite what skeptics say, we can and must get this deal all the way across the finish line in a bipartisan manner.”

Interagency Agreement to Coordinate Broadband Funding Deployment

The Department of Agriculture and other Federal Agencies Friday announced an interagency agreement to coordinate the distribution of broadband deployment funds. USDA, the Federal Communications Commission and the National Telecommunications and Information Administration signed the agreement. Each federal agency partner agrees to share information about existing or planned projects that receive funding from the various federal funding sources. The agreement also requires the federal agency partners to consider basing the distribution of funds from the programs on standardized broadband coverage data. Agriculture Secretary Tom Vilsack says broadband “is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected, adding, “USDA remains committed to being a strong partner with rural communities.” Commerce Secretary Gina Raimondo (Roh-MUN-doh) says the announcement “lays important groundwork for collaboration between agencies to ensure the federal government’s efforts to expand broadband access are as effective and efficient as possible.”

Washington Insider: The Supreme Court and Biofuels

The U.S. Supreme Court on Friday issued a long-awaited ruling in a case involving biofuels, siding with refiners in the case. The nation's top court ruled in the HollyFrontier Cheyenne Refining vs. Renewable Fuels Association (RFA) that the Tenth Circuit Court of Appeals ruled in error when it invalidated three small refinery exemptions (SREs) for the 2016 compliance year.

Those SREs allow small refiners to be excused from their obligations under the Renewable Fuel Standard (RFS) if they can show meeting them would cause "disproportionate harm" to their survivability.

The initial RFS included exemptions for these small refiners, those with an output of less than 75,000 barrels per day, through 2011. In the time from 2011 through 2015, typically less than 10 SREs were granted.

The level of SREs applied for and granted exploded during the Trump administration, leading to the suit that eventually reached the Tenth Circuit Court of Appeals and finally the U.S. Supreme Court.

The Tenth Circuit had invalidated the SREs granted for the 2016 compliance year by the Trump administration, ruling that in order for the refiners to be able to get the SREs for that year the had to have them continuously since 2011. Under the law, it said that the SREs could be extended.

But that definition of extended was at the heart of the Tenth Circuit Court ruling.

The refiners affected by the decision opted to elevate the matter to the U.S. Supreme Court. The Biden administration in February announced they were now siding with the Tenth Circuit Court in its decision and that was expected to potentially add to the defense of the RFS in the Supreme Court session that heard the case in April.

But that definition of "extension" was where the Supreme Court said the Tenth Circuit had erred. The majority opinion in the 6-3 case was written by Justice Neil Gorsuch, who argued that even Congress will "extend" a program via legislation even after that program had lapsed. He also likened it to a study not meeting a deadline to turn in a report on a Friday and the teacher then allowing that student to turn the report in on Monday.

The court did note that the term "extension" is not defined in the RFS and that it can mean "an increase in time." The Court said that the Tenth Circuit "erred" when it imposed the definition that the SREs had to have "unbroken continuity." The top court simply stated, "The plain meaning of 'extension' does not require unbroken continuity."

Justice Amy Coney Barrett wrote the dissenting opinion and noted that even while the majority opinion sides with HollyFrontier on the definition of "extension," she noted the refiner "does not dispute that when used to refer to 'an increase in the length of time,' the word 'extension' can -- and commonly does -- refer to something that is prolonged without interruption."

Just as Gorsuch used a real-world example in the majority opinion, Coney Barrett opted to do the same. "Consider a hotel guest who decides to spend a few more days on vacation. That guest likely would ask to 'extend [her] visit,'" Coney Barrett wrote. "Now suppose the same guest returns to the same hotel three years later and, upon arrival, requests to 'extend' her prior stay. The hotel employee would no doubt 'scratch her head.'"

Observers on both sides of this issue believe refiners won in this case. And markets appeared to take the same view. The prices for Renewable Identification Numbers (RINs), the biofuel credits that refiners can purchase to demonstrate compliance with the RFS if they do not blend enough biofuels to gasoline to meet those mandates, fell in the wake of the Court's decision.

That alone could lower the costs for refiners to comply with the law. Recall that the suit also focuses on the "disproportionate" harm that these small refiners would face if they complied with the law. Now those compliance costs will be lower and reports indicated that refiners had backed out of the RIN market in recent weeks as they bet the Supreme Court would side with them.

This, of course, raises questions on whether the reduced RIN prices now mean those refiners would no longer be facing "disproportionate harm" in complying with the law.

And this further muddies the waters over the 50 SREs that are pending for the 2019 and 2020 compliance years, not to mention the 20 that were pending for the 2011-2018 compliance years as refiners sought to hedge their bets and apply for SREs in the prior years just in case the Supreme Court sided against them.

Today, biofuel backers will be offering up their views on the Supreme Court ruling. They clearly will not be pleased.

So we will see. This adds yet another layer onto what has become a controversial policy and one that is a key for agriculture and must be watched closely given the portion of corn and soybean production that goes to making biofuels, Washington Insider believes.

Reuters: Mexico Rejected Three Shipments From Smithfield Plant Before Delisting

Mexican inspectors rejected three cargoes of pork skins from the Smithfield plant in Tar Heel, North Carolina, before delisting the plant relative to its ability to ship pork into Mexico June 16, according to a report from Reuters.

Rava Forwarding was also delisted by Mexico June 18 and the country's health safety agency Senasica said Rava was the third-party company involved in the situation.

Smithfield issued a statement last week after the delisting that issue was not linked to Smithfield or the Tar Heel plant but an unnamed third-party company. Reuters reported that Senasica said it rejected a shipment April 15 from the Tar Heel plan after inspectors observed rotting product covered with "yellowish spots."

Two more rejections took place in June, the report said, which may have included a mix of product from both plants. Senasica said the decision to delist the two facilities was based on the "accumulation" of tainted cargoes of refrigerated pork skins.

It is not clear how long the delisting will last, but it could take at least a few months, the agency said.

House Appropriations Subcommittee Clears FY 2022 USDA/FDA/CFTC Funding

The House Appropriations Agriculture Subcommittee approved the Fiscal Year (FY) 2022 spending plan covering USDA, the Food and Drug Administration (FDA) and the Commodity Futures Trading Commission (CFTC).

The plan would boost discretionary spending by 1.3% to $26.6 billion compared with $23.4 billion in FY 2021. Total spending in the plan would be at $196.7 billion. Among provisions in the package is an increase for the ReConnect program that is aimed at expanding broadband service in rural communities.

The plan would allocate $800 million for the effort, up from $635 million in FY 2021 and above the $700 million requested by the Biden administration.

There is another $347.4 million that will go toward USDA programs on climate change.

There were not major amendments or changes to the bill at the subcommittee level, but the markup set for June 30 by the House Appropriations Committee could see more activity.

Monday Watch List

Markets

Traders remain glued to the latest weather forecasts and will be checking rainfall amounts from over the weekend. USDA's weekly grain export inspections report is set for 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Corn and soybean crop ratings will reflect the haves and have-nots of the latest rains and traders will also note wheat harvest progress.

Weather

A zone of scattered showers will continue along a stalled front from Texas through Michigan and may cause flooding on Monday, with scattered showers behind it across the rest of the Plains and Midwest. Regardless of flooding potential, the rains will disrupt the HRW wheat harvest. Additional flooding potential may occur in areas that received lots of rain this weekend in the Midwest, but the showers will be beneficial for developing corn and soybeans.

Ag Groups Welcome Senate Passage of GSCA

Agriculture groups responded favorably to the Senate passage of the Growing Climate Solutions Act Thursday. American Farm Bureau Federation President Zippy Duvall says, “We appreciate lawmakers putting aside their differences to work on bipartisan solutions to the challenges facing farmers and ranchers.” The legislation is supported by more than 75 agriculture, food, forestry and environmental groups that are part of the Food and Agriculture Climate Alliance. AFBF says the legislation provides clarity and guidance for farmers, ranchers and forest landowners interested in voluntary participation in private carbon credit markets. National Farmers Union President Rob Larew says of the legislation, “It will be no small task to curtail this existential threat – but by leveraging the full potential of every sector, including agriculture, we have the ability to protect our planet.” Farm Credit Council President and CEO Todd Van Hoose calls the bill an “important step” to developing a voluntary, market-based system for carbon markets.

Farm Debt Declines Further and Credit Stress Eases

Agricultural debt at commercial banks continued to decline in the first quarter of 2021, and farm loan performance improved. The Kansas City Federal Reserve Bank this week released the data that shows both real estate and production loans decreased, reducing farm debt by more than five percent from a year ago. The reduction in agricultural loan balances was less pronounced among banks most concentrated in agriculture, driven by modest growth in real estate debt. Delinquency rates on farm debt dropped notably from a year ago and, alongside strong earnings, profitability at agricultural banks improved from the end of last year. The outlook for agriculture remains strong heading into the summer months. However, increases in production costs and persistent drought in many regions lingered as concerns. And profitability for cattle producers remained narrow. Overall, strength in aggregate conditions and lasting support of government aid and lending programs have continued to limit increases in farm debt and ease agricultural credit stress.

Florida Judge Blocks Debt Relief for Minority Farmers

A federal judge in Florida this week blocked the Department of Agriculture’s debt relief program for minority farmers. A white farmer in Florida challenged the program, facing farm loans and financial hardship during the pandemic. The farmer claims the debt relief program discriminated against him by race. A District Judge this week blocked the $4 billion program, ruling the farmer had established a “strong likelihood” of the policy violating his right to equal protection under the law, according to Reuters. A separate judge in Wisconsin granted a temporary restraining order on the program earlier this month. USDA is defending the debt relief program, saying USDA employees and programs have discriminated against socially disadvantaged farmers by denying loans and delaying payments. House Agriculture Committee Chairman David Scott, A Black Democrat from Georgia, weighed in on the lawsuits earlier this week. Scott says, "I strongly support and thank Secretary Vilsack for standing up and fighting for this critical, urgent and much-needed legislation.”

Experimental Vaccine Protect Cattle from Johne’s Disease

Scientists with the Agricultural Research Service Thursday announced a new experimental vaccine to protect cattle from the bacterium that causes Johne’s (yo-knee’s) disease. The disease is a chronic intestinal disorder that can cause diarrhea, weight loss, poor health and sometimes death in cattle. In the United States, Johne’s disease is most prevalent in dairy herds, costing the industry more than $220 million annually. Researchers created a so-called cocktail of four proteins from the bacteria to create the vaccine. Encouraged by test results with mice, the researchers scaled up their efforts to produce the four proteins and combine them into a single vaccine "cocktail" that could be administered to calves. Trials with dairy calves indicate the vaccine did not disappoint, rendering the young animals immune to the disease over the course of a year of monitoring. The researchers note the need for additional efficacy trials and welcome collaboration with an industry partner to further explore the patented vaccine cocktail's commercial potential. 

USDA to Investing $10 Million to Support Climate-Smart Agriculture and Forestry

The Department of Agriculture is providing $10 million to support climate-smart agriculture and forestry through voluntary conservation practices in ten targeted states. Available through the Environmental Quality Incentives Program, the funding will help producers plan and implement voluntary conservation practices that sequester carbon, reduce greenhouse gas emissions, and mitigate climate change. Producers in Arkansas, Florida, Georgia, Michigan, Minnesota, Mississippi, Montana, North Carolina, Pennsylvania and Wisconsin can apply for the funding. Each state will determine its own signup period, with signups expected to begin on or around June 24 in most states. USDA’s Natural Resources Conservation Service, which administers EQIP, selected states based on demand for additional support for climate-smart practices. A USDA official states, “Farmers, ranchers and forest landowners are the best stewards of our lands and waters, and they play a critical role in climate change mitigation,” The pilot will be expanded across all states and programs in fiscal year 2022.

Biden Extends Moratorium of Residential Evictions in USDA Multifamily Housing Communities

The Centers for Disease Control and Prevention Thursday extended the moratorium on evictions of Americans who live in multifamily housing communities supported by the Department of Agriculture. The extension grants the moratorium through July 31, 2021. USDA Rural Development undersecretary Justin Maxson says the action gives tenants at USDA-supported properties “essential relief while the Department extends the emergency rental assistance provided by the American Rescue Plan Act.” Beyond July 31, 2021, USDA will continue to offer emergency assistance to USDA multifamily housing property owners and tenants who are experiencing financial hardship due to the pandemic. USDA’s Multi-Family Housing Programs provide affordable multifamily rental housing in rural areas by financing projects geared for very-low-income families, the elderly, people with disabilities, and domestic farmworkers. USDA also extends assistance through loan guarantees for affordable rental housing for very-low- to moderate-income residents in rural areas and towns. Additionally, USDA provides grants to organizations to repair or rehabilitate housing for eligible families.

Washington Insider: More Pressure on China Over Forced Labor

The U.S. Customs and Border Protection (CBP) as issued a Withhold Release Order (WRO) on silica-based products made by Hoshine Silicon Industry based in Xinjiang, China, and its subsidiaries.

“This WRO is based on information reasonably indicating that Hoshine used forced labor to manufacture silica-based products,” CBP said. “As a result, personnel at all U.S. ports of entry have been instructed to immediately begin detaining shipments that contain silica-based products made by Hoshine or materials and goods derived from or produced using those silica-based products.”

This means that all of those products made by Hoshine will be stopped at the U.S. border and held by CBP.

Additionally, the U.S. Department of Commerce (DOC) announced that Hoshine Silicon Industry (Shanshan) Co., Ltd., Xinjiang Daqo New Energy Co., Ltd., Xinjiang East Hope Nonferrous Metals Co., Ltd., Xinjiang GCL New Energy Material Technology Co., Ltd., and the Xinjiang Production and Construction Corps (XPCC) have been added to the U.S. Entity List, saying they were for “accepting or utilizing forced labor in the implementation of the People's Republic of China's campaign of repression against Muslim minority groups in the Xinjiang Uyghur Autonomous Region.”

The WRO does not cover all silica products from China, but indications are that CBP could be collecting information that could lead to a broader application of the WRO. They followed that pattern previously relative to cotton and tomatoes and tomato products, originally targeting just the products from the XPCC and later they broadened it to all products from Xinjiang.

The South China Morning Post downplayed the potential impact on Hoshine, quoting Peng Peng, general secretary with the China New Energy Investment and Financing Alliance, as saying the U.S. market for Chinese solar panels is not that big. However, she also noted there were few alternatives outside of China for the products -- China produces about 76% of the world's polysilicon, with production bases mainly in Xinjiang, the Inner Mongolia autonomous region, Sichuan province and Yunnan province.

"I believe Chinese companies have been preparing for any U.S. sanctions since the trade war began. So, we need to think next about how to counter the U.S. sanctions by swapping the origin of production, by shifting orders within China," she said.

Predictably, the reaction within China has been critical of the U.S. actions. Commerce ministry spokesman Gao Feng repeated the Chinese stance that the “so-called forced labor issue” in Xinjiang is “completely contrary to the facts.” Gao also said the U.S. is “again using its state power to practice protectionism and bullying in the name of so-called human rights, which seriously damages the international economic and trade order and poses a serious threat to the security of the global supply chain.”

From China's Foreign Ministry, spokesman Zhao Lijian said, China will “make necessary responses to resolutely safeguard its own interests.”

The pressure on China is clearly rising from the U.S., but what is of even greater concern for China is if European countries follow suit. That could create even more potential pressure on China and Chinese businesses if they are blocked out of the EU market.

Already, some companies in Europe have opted to include provisions in contracts that require proof that no Xinjiang forced-labor cotton is involved in textiles or clothing items. That may be a tough task, but the fact companies are doing so is a clear signal that the issue is not going away.

So we will see. If the pressure mounts on China, their warnings of “protecting their interests” could take several forms, including actions against imports of U.S. products, something which needs to be closely watched, Washington Insider believes.

No Conclusions From Senate Hearing On Cattle Market

The Senate Agriculture Committee explored the issue of U.S. cattle markets and as expected, did not come to any conclusions about what needs to be done to address market conditions.

The panel heard testimony from cattlemen and academics who focused on the need for price discovery improvements with some pushing for livestock price reporting requirements to be tweaked to improve market clarity.

There was also considerable discussion about processing capacity in the U.S., with lawmakers hearing about the costs involved in setting up new slaughter facilities.

This is why Senate Agriculture Chair Debbie Stabenow, D-Mich., will take more time for the industry to reach agreement, something that will take a major effort and time. Expect any plan from Congress to likely come about later rather than sooner given the breadth of issues.

Federal Judge Halts Socially Disadvantaged Farmer Debt Relief

A Federal judge in Florida has issued a preliminary injunction that halts the implementation of the program to provide debt forgiveness to socially disadvantaged farmers. U.S. District Judge Marcia Morales Howard halted the program, saying it does not do away with racial discrimination.

“Congress also must heed its obligation to do away with governmentally imposed discrimination based on race,” Morales Howard said. “It appears that in adopting Section 1005's strict race-based debt relief remedy Congress moved with great speed to address the history of discrimination, but did not move with great care.”

The provision referenced by the judge would have USDA's Farm Service Agency (FSA) pay up to 120% of direct and guaranteed loan outstanding balances as of January 1, 2021, for socially disadvantaged farmers and ranchers. However, the judge indicated that USDA could still continue preparations to deliver the debt relief until the program is found “constitutionally permissible.”

The program had already been on hold die to a separate restraining order in Wisconsin, but this Florida decision is seen as a nationwide suspension of the program.

The suit in Florida was brought by white farmer Scott Wynn who said he had federal farm loans and could not apply for the debt forgiveness as he was white.

Friday Watch List

Markets

A report on U.S. personal incomes and consumer spending for May is due out at 7:30 a.m. CDT, followed by the University of Michigan's consumer sentiment index for June at 9 a.m. Traders will be watching the latest weather forecasts and maps of actual rain amounts. USDA's cattle on feed report for June 1 is due out at 2 p.m. CDT.

Weather

Heavy rain fell across southern Iowa and northern Missouri on Thursday and that trend looks to continue to spread across the much of the Corn Belt and Plains on Friday. Moderate to heavy rain is expected for many areas, disrupting the wheat harvest but benefiting developing corn and soybeans where flooding does not occur. The Northern Plains will see some showers moving through but amounts will be much lighter, while Minnesota largely stays dry for another day.

R-CALF: Concentration and Globalization Behind Cattle Market Issues

As the Senate Agriculture Committee focused on potential cattle market manipulation Wednesday, R-CALF USA says concentration and globalization are the core problems. Separate from the committee hearing, R-CALF submitted comments to USDA this week responding to a request for input on transforming America’s food system. R-CALF, short for The Ranchers Cattlemen Action Legal Fund United Stockgrowers of America, points out four multinational beef packers control 85 percent of the fed cattle market and 80 percent of the boxed beef market. The comments explain, “they have now consolidated their control over both the supply side and demand side.” To address this, R-CALF’s first recommendation for reversing the effects of globalization is to require all beef sold in America to be labeled with a country-of-origin label. Doing so, R-CALF says, consumers can begin making purchasing choices between foreign beef and domestic beef. The comments include nearly 30 separate recommendations to strengthen the domestic cattle and beef supply chains.

Republicans Launch Conservative Climate Caucus

House Republicans Wednesday launched the Conservative Climate Caucus. The caucus includes more than 50 representatives from every committee with jurisdiction over climate policy and various ranking members. Utah Representative John Curtis chairs the caucus, stating, “We do care about climate – and we already have solutions and plan to find more.” The goal of the Conservative Climate Caucus is to bring members of the Republican party together to educate each other on climate policies that will make progress on reducing emissions through American innovation and resources. In a news release, Curtis says proposals to reduce emissions and be good stewards of the earth do not have to hurt the American economy, adding, “There is a way to lower global emissions without sacrificing American jobs and principles.” A webpage describing the caucus states that with innovative technologies, fossil fuels can and should be a major part of the global solution, adding, “reducing emissions is the goal, not reducing energy choices.”

Senators Introduce the Define WOTUS Act

Senate Republicans from Iowa, Chuck Grassley and Joni Ernst, and Indiana's Mike Braun introduced the Define WOTUS Act this week. The bill legislatively defines "waters of the United States," and makes a definition of the term permanent. Grassley and Ernst recently sent a letter to Agriculture Secretary Tom Vilsack to express concerns over the Biden administration's decision to roll back the previous administration's Navigable Waters Protection rule. Grassley states, "Adding more federal red tape for home builders during construction or to a farmer's day-to-day decisions on the farm is government overreach." Braun of Indiana says, "Farmers and families need a reasonable, practical definition for WOTUS, and that’s why Congress should do its job and define the law.” The EPA earlier this month announced intent to rewrite the Navigable Waters Protection rule. American Farm Bureau’s Don Parrish said at the time, “this is not a fight about protecting water quality, because the Navigable Waters Protection rule does that, this is a fight over land use.”

USDA Invests $185 Million to Improve Rural Community Facilities

The Department of Agriculture Wednesday announced funding for rural facilities and essential services in rural America. USDA is investing $185 million to equip, rebuild, and modernize essential services in rural areas of 32 states, benefiting three million rural residents. Specifically, USDA is investing in 233 projects through the Community Facilities Direct Loan and Grant Program. Of these, 74 awards, totaling $4 million, will help communities with their long-term recovery efforts following natural disasters such as hurricanes, floods and tornadoes. USDA Rural Development undersecretary Justin Maxson says, “These loans and grants will help rural communities invest in facilities and services that are vital.” More than 100 types of projects are eligible for Community Facilities funding. Eligible applicants include municipalities, public bodies, nonprofit organizations and federally recognized Native American tribes. Projects must be in rural areas with a population of 20,000 or less. To learn more about Community Facilities Program funding opportunities, contact a USDA Rural Development state office.

Britain Begins Talks to Join CPTPP

Britain is negotiating to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP. Talks began earlier this week to join the trade deal Britain sees crucial to its post-Brexit pivot away from Europe, according to Reuters. The CPTPP agreement removes 95 percent of tariffs between its members, including Japan, Canada, Mexico and others. While joining the agreement won't significantly increase exports for Britain, it will lock in market access, and increases market influence. Reuters points out Britain will need to demonstrate it can meet the existing members' standards on tariff removal and trade liberalization, and provide clear details on how and when it will do so. The United States left the trade agreement, then known only as the Trans-Pacific Partnership, during the Trump administration. However, during his campaign, President Joe Biden expressed the possibility of renegotiating and rejoining the CPTPP, but has yet to announce any plans to do so.

Farmers Union Opposes Longer Mail Delivery Times

A proposal to permanently slow down First-Class Mail delivery would be “catastrophic” for family farmers, according to the National Farmers Union. NFU submitted comments this week to the U.S. Postal Service on the proposal. Currently, First-Class mail is supposed to be delivered within a one- to three-day time frame. However, in an effort to cut costs, USPS has proposed extending that range to five days. NFU contends that because rural areas often lack both services like banks, pharmacies, polling places, and supply stores as well as access to broadband internet and private delivery services, residents disproportionately depend on USPS to receive medication, vote, communicate with friends and family, cash checks, and conduct business. NFU says the delay would be particularly detrimental for packages containing time-sensitive materials such as live animals, perishable foods, ballots, and prescription medications. The proposal, according to the NFU filed comments, could put “rural businesses and livelihoods at risk.”

Washington Insider: Supreme Court Decision on Farm Access

The U.S. Supreme Court has ruled that a California regulation that allows union organizers to enter ag properties without the employer's consent violated their property rights. The nation's top court issued the decision with a 6-3 vote, the conservative judges voting in the affirmative while the three liberal judges dissented.

Cedar Point Nursery and Fowler Packing Company brought the suit against the decades-old California regulation, the California Agricultural Labor Relations Board regulation that has been in place since 1975. That regulation allowed union organizers with notice to the regulators and employer, to enter agricultural premises to talk to workers for three non-working hours per day during four 30-day periods each year.

The reg does not require the organizers to get the approval from the employer, only that they have to notify the employer.

The court ruled that the regulation is essentially equivalent to the government taking private property for public use without justification, in violation with the Constitution's Fifth Amendment.

"The access regulation grants labor organizations a right to invade the growers' property. It therefore constitutes a per se physical taking," Chief Justice John Roberts said in the majority opinion.

But those on the minority argued differently, with Justice Stephen Breyer stating that the union activity was only temporary in nature. "The regulation does not appropriate anything. It does not take from the owners a right to invade (whatever that might mean)," Breyer wrote. "Most such temporary-entry regulations do not go 'too far.' And it is impractical to compensate every property owner for any brief use of their land.”

The case was elevated to the Supreme Court after the Ninth U.S. Circuit Court of Appeals threw out the challenge brought by the companies after organizers at Cedar's property had disrupted work with bullhorns while Fowler had denied access to the property by union organizers. The Ninth Circuit ruled that the rule did not rise to the level of being an unconstitutional taking because of the temporary nature of the action.

The California Supreme Court upheld the rules on a 4-to-3 vote in 1976, and the provisions have gone unchallenged until now.

Breyer also said that on remand to lower courts, California at least should have the chance to compensate the growers as that would then allow the union organizers to maintain access. However, the growers want the regulation to end.

Those seeking to keep the regulation in place argued that the matter was not a taking and that ending the regulation could allow landowners to bar access to their property by federal food inspectors and potentially others, even law enforcement.

But Ilya Somin, a law professor at George Mason University, pointed out in an op-ed item in The Hill that the court ruling “does not mean all government-mandated entry on private property qualifies as a taking. The court lists several exceptions to its general rule, including most 'health and safety' inspections, and enforcement of regulations that bar owners from violating common law rights of others (as by creating a nuisance).” He noted the health and safety inspections are “conditions for the conferral of various government benefits.”

But the scope of those exceptions, Simon said, “isn't entirely clear and will likely be a subject of future litigation.”

But what the Supreme Court has done is upheld the rights of property owners. And that is something that agricultural property owners have fought to keep intact. Those arguments have prevailed in other cases and now again this time around.

So we will see. As Somin points out, there will likely be other challenges ahead, and that means these potential cases in the futures bear watching closely by agriculture, Washington Insider believes.

Biofuel Supporters Keep on Message in Senate Hearing

A Senate Agriculture subcommittee Tuesday examined issues on renewable energy and the U.S. rural economy, with the panel hearing a consistent message from supporters of biofuels -- using biofuels can contribute to the Biden administration's goal of net-zero emissions by 2050.

Emily Skor of Growth Energy stressed that accurate modeling on ethanol's lifecycle greenhouse gas (GHG) emissions was a key need so that the fuel gets proper credit for its benefits over straight gasoline. “Important for us is that you have a modeling that reflects the most current science and reflects all of the innovation that's taking place, not only at the plant, but also on the field,” she stated. She also said that a low carbon fuel standard (LCFS) is something the ethanol industry supports, but said it has to be technology neutral and be science-based.

As for refiner contentions that compliance costs relative to their Renewable Fuel Standard (RFS) obligations have risen so high that their survivability is in question, Skor said, “There is no correlation to the price of complying with the RFS and refinery profits. This is something that has been affirmed by many experts, including the EPA several times.”

Biden, Vilsack Going To Wisconsin Next Week

President Joe Biden and USDA Secretary Tom Vilsack will be in Wisconsin on Tuesday June 29 to discuss agriculture and rural economies, according to the White House.

Dairy is likely to figure high on the list of issues that will be focused on with the administration having announced additional aid will be coming to the sector over the next 60 days.

But there has been little detail on the aid plans as of yet. However, the expectation is that as Biden and Vilsack visit the nation's key dairy state, there will be some kind of policy announcement forthcoming as Wisconsin is viewed as a potential battleground state in the 2022 midterm elections.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, an update of first quarter U.S. GDP and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly natural gas inventory report is set for 9:30 a.m. CDT. Traders remain closely tied to the latest weather forecasts.

Weather

A complex of moderate rain was situated from Iowa through eastern Kansas early Thursday morning. This cluster should diminish this morning as it continues east, but more rain is on the way for the Plains and western Midwest Thursday as a system develops along a cold front. Some of these storms could be severe across the Kansas-Nebraska border region east and northeast into Wisconsin and Illinois.

Senators Want Reasons for Replacing the Navigable Waters Protection Rule

West Virginia Republican Senator Shelly Moore Capito (CAP-ih-toe) and several Republican colleagues want to know why the Biden EPA decided to replace the Navigable Waters Protection Rule. Capito, the Ranking Member of the Senate Environment and Public Works Committee, says, “After the administration’s continued commitments to transparency, engagement, and communication with stakeholders and Congress on this issue, the lack of transparency surrounding the decision to abandon this legally defensible and environmentally sound rule is disheartening.” The Republican Senators point out that on a briefing call after announcing the decision to replace the rule, the Environmental Protection Agency and the Corps of Engineers made several assertions as justification for the move. The agencies say the decision was based on “significant environmental damage” and “ongoing environmental harm,” as well as several implementation challenges. “To date, the limited details provided to support those assertions has contributed to only greater uncertainty for Congress, the states, and regulated entities,” the letter continues. “The agencies haven’t provided a complete analysis to back their assertions.”

Brazil Corn Harvest Forecast Drops Over Eight Percent

Brazilian farmers will harvest just under 94 million tons of corn this season. A Reuters poll of ten harvest forecasters indicates a fall of 8.5 percent from the last forecast due to a severe drought. Second-crop corn failure will lead to higher imports and lower exports of the crop. The forecasters say Brazil, home to some of the world’s largest meat processors, will need to keep the grain to make it livestock feed. One agribusiness consultant cut her corn export forecast to 22.5 million tons, down from a previous prediction of 32 million tons, and told Reuters she estimates Brazilian corn import needs may reach four million tons. If the dry weather persists, corn yields may fall even further in some of the key corn-producing states in Brazil. In April, a Reuters poll of 11 forecasters predicted a record corn crop of 107 million tons, but poor weather during the development stage damaged that prospect. Brazil’s second-corn crop, which gets planted after the country’s soybeans get harvested at the end of Brazil’s summertime, has been hit hardest by a lack of rainfall.

Farm Bank Lending Stay Strong in 2020

Despite a global slowdown in 2020 brought on by COVID-19, agricultural lending by U.S. farm banks remained strong at $98.6 billion, just a 1.8 percent drop from the prior year. The American Bankers Association’s annual Farm Bank Performance Report attributes the change to a 6.7 percent decline in agricultural production loans. By contrast, the outstanding loans secured by farmland increased 2.1 percent to $56.7 billion. The report says rising costs, supply and production bottlenecks, price volatility, and a significant increase in federal cash payments depressed demand for agricultural production loans in 2020. Government payments also helped producers pay down existing loan balances. The Chief Economist for the ABA says American farm banks have remained healthy over the past year and continue to play a critical role in supporting farmers and the broader U.S. economy through the turbulence of 2020. The report also says the strong asset quality and capital levels of America’s farm banks will help ensure that they continue to provide support to rural communities. Farm banks also continued to build strong capital reserves throughout 2020 and are well-insulated from risks associated with the agriculture sector. Equity increased nine percent to $52.6 billion.

Colorado Supreme Court Blocks Livestock Measure

The Supreme Court in Colorado blocked a statewide ballot initiative that would have expanded animal cruelty regulations from appearing on the November 2022 ballot. The Supreme Court says the initiative advances two subjects in its language, violating the state’s single-subject requirement for state statutes. Center Square Dot Com says the proposed ballot measure is called Initiative 16 and would impose new restrictions on animal husbandry that required ranchers to wait at least one-quarter of an animal’s life before sending it to slaughter. Ranchers in violation of the measure may have been charged with a crime. The measure would also have expanded the statutory definition of animal cruelty to include artificial insemination and other penetrations, “however slight.” The court says that the two subjects invite a “potential for the very kind of surprise that the single-subject requirement seeks to guard against.” Voters may not understand that what is called a livestock initiative would also affect the care of all animals or vice versa. Initiative 16 was approved by the state’s Title Board in late April and immediately drew the wrath of rural communities and the state’s agricultural community.

NBB Highlights Policy Priorities in Letter to Congress

The National Biodiesel Board delivered a letter to Congress signed by more than 50 companies outlining the industry’s policy priorities. The priorities include maintaining tax incentives for low carbon biofuels, supporting infrastructure to deliver more clean fuels to consumers, and optimizing the Renewable Fuel Standard to maximize environmental benefits. “As Congress develops legislation to address the nation’s infrastructure, climate, and economic priorities, we ask that you support the continued growth of the biodiesel and renewable diesel industry,” they say in the letter. “U.S. biodiesel and renewable diesel producers are meeting America’s need for better, cleaner transportation fuels right now. We are also generating economic, environmental, and health benefits for many states and communities.” The letter highlights the $17 billion annual economic impact of the biodiesel and renewable diesel industries  employ more than 65,000 Americans. It also highlights the carbon benefits the industry delivers. Last year, the U.S. used three billion gallons of renewable diesel and biodiesel, which achieved an average 74 percent reduction in carbon emissions compared to petroleum diesel. The NBB is hosting a virtual Advocacy Day Fly-In today (Wednesday).

FSA Accepting Nominations for County Committee Members

The Farm Service Agency is accepting nominations for county committee members. Nomination forms for the 2021 election must be postmarked or received by the local FSA office by August 2. Elections will take place in certain Local Administrative Areas for these members who’ll make important decisions about how federal farm programs are administered locally. “We need enthusiastic, diverse leaders to serve other agricultural producers locally on FSA County Committees,” says FSA Administrator Zach Ducheneaux. “Just as our nation’s agriculture industry is diverse from coast to coast, so are the viewpoints and experiences that you can represent on your local committee.” He also says now is the time to step up and truly make an impact on how federal farm programs are administered at the local level to reach all producers fairly and equitably. Producers who participate or cooperate in a USDA program and reside in the LAA that’s up for election this year may be nominated for candidacy for the county committee. Around the nation, more than 7,700 dedicated members of the agricultural community are serving on FSA county committees.

Washington Insider: China Port Woes Backing Up Global Shipping

Shipping issues have again roiled the global transportation market, with impacts emanating from one area of the world -- China. This time, the bottlenecks in China and not the Suez Canal.

While global demand for goods produced in Asia is one factor, the New York Times reported that problems in the third largest container port in the world of Shenzhen is making the problems even worse. "The shipping delays are related to the Chinese government's stringent response to a recent outbreak of the virus," the Times said. "Shenzhen, with a population of more than 12 million, has had fewer than two dozen locally transmitted coronavirus cases; city health officials have linked them to the Alpha variant, which was first identified in Britain."

What is key is that the China has ordered testing of all 230,000 that live hear the Yantian container port where the first case was found May 21. But what is really snarling the system? Contact between port employees and sailors has been banned. "The city has required port employees to live in 216 hastily erected, prefabricated buildings at the docks instead of going home to their families every day," the Time said.

The situation has resulted in the port capacity to handle containers being very strained, still at 30% below its capacity as of last week. State media in China has said that it could take the rest of the month before a full recovery can be seen.

However, the times quoted Tim Huxley, the chairman of Mandarin Shipping which is based in Hong Kong, it could take the rest of the year to short out all the shipping delays at Yantian and elsewhere.

Already, scores of ships have been anchored off Shenzhen and Hong Kong with wait times to get to the dock at 16 days for the Yantian container port.

While the Yantian port had halted loading export containers for six days early in June, the problems have continued. The situation is now causing global delays similar to those seen in the Suez Canal situation where the Ever Given ran aground and blocked shipping for a week.

This has sent shipping rates skyrocketing. "The average cost of shipping a 40-foot container from East Asia to Europe or North America has roughly quadrupled in the past year," the Times noted. "Rates have soared this month with the Yantian difficulties."

Within China there are also impacts being seen. The Shenzhen Daily reported that an international logistics company in the Yantian District was hit by the delays and it faced penalties and fines for the delays at the port. The China Council for the Promotion of International Trade (CCPIT) Shenzhen issued a proof letter of limited service at the port, which the report said lessened the company's liability for the delay; CCPIT Shenzhen said that it has handled 2,022 business-related proof documents, the report noted.

The Suez Canal situation backed up a lot of container shipping around the globe and now the situation in China is expected to further delay a return to normal. But even as shipping issues wane there is still the matter of getting cargoes unloaded at destination ports like Los Angeles or Long Beach.

The strains on the ports there are from the heavy volume of containers arriving which is taxing systems to move those goods from the port inland. Similar situations are being reported in China as getting goods onloaded and offloaded has become a challenge.

This is one more challenge for agricultural exports. Containers have already become a bottleneck issue for agriculture, with the Federal Maritime Commission opening an investigation into companies opting to ship empty containers back to China and other Asian destinations so that they can more quickly return with goods in demand from U.S. consumers. But this latest snag in China has probably greatly reduced the benefit that shippers expected to reap by not hauling ag cargoes.

So we will see. Agricultural interests may feel somewhat relieved that they might not be as impacted as they could otherwise be, but it still represents the challenges that the increasing focus on U.S. ag exports. And the shipping situation is one that bears watching closely, Washington Insider believes.

Two US Facilities Delisted From Exporting To Mexico

USDA's Food Safety and Inspection Service (FSIS) said that the Smithfield Foods plant at Tar Heel, North Carolina, and the Rava Forwarding facility in Laredo, Texas, have been delisted as plants eligible to ship products to Mexico.

FSIS said the Smithfield facility was delisted June 16 relative to slaughter, boning, cut up, grinding, and processing pork, while the Rava Forwarding cold storage facility was delisted June 18. The facility is listed as cold storage for beef, poultry, pork, bison, sheep and wild game.

The Smithfield situation involved Mexican concerns over quality of a specific lot of hog skins sold to a third-party company that were eventually exported to Mexico, according to Keira Lombardo, Smithfield chief administrative officer. "We have conducted a thorough internal inquiry and have determined that the issue originates with the third-party company, not with Smithfield nor the facility," Lombardo said.

Reuters reported that Mexico's health safety agency Senasica was reviewing the matter.

Republicans on Senate Panel Seek More Explanation From EPA On WOTUS

Republican members of the Senate Environment and Public Works Committee are asking EPA and the U.S. Army Corps of Engineers for the review the agencies said was conducted which prompted them to conclude that the Trump administration's Navigable Waters Protection Rule needed to be repealed and replaced.

"After the administration's continued commitments to transparency, engagement, and communication with stakeholders and Congress on this issue, the lack of transparency surrounding the decision to abandon this legally defensible and environmentally sound rule is disheartening," the lawmakers said in the letter to EPA Administrator Michael Regan and acting Assistant Secretary of the Army for Civil Works Jaime Pinkham.

The lawmakers said the administration has not provided its analysis to back up their claims the Trump-era rule caused "significant environmental damage" and "ongoing environmental harm" and that it faced "implementation challenges."

They are asking for specifics of the harm, damage and implementation issues and information on the 333 projects that did not require a permit under the Trump rule but would have under the Obama-era Waters of the U.S. (WOTUS) rule. The lawmakers are seeking a response by July 5.

Refiners Over One Billion Dollars Short on RINs

U.S. refiners are short on $1.6 billion worth of credits they need to comply with U.S. biofuel laws. Reuters reviewed corporate earnings disclosures to come up with that total. The big liability comes as the Biden Administration considers potential relief for oil refiners from biofuel mandates. Refiners say they need the relief because of soaring credit costs and the economic hardship brought on by COVID-19 that’s hurt the industry. RIN prices are higher since the start of 2021 because of higher feedstock costs and market uncertainty. RINs were trading at the highest price since the program began 13 years ago. Prices have dropped 50 cents since hitting a recent high of $2 a credit. If the Biden administration grants some relief from the mandates, refiners may not need to fulfill all their obligations. Some lawmakers and refining industry representatives have requested help for the industry. The White House hasn’t said what actions President Biden will take to relieve refiners of their obligations under the Renewable Fuel Standard.

USDA Considering Tougher Organic Livestock Rules

Ag Secretary Tom Vilsack says the Biden Administration will reconsider the Trump Administration’s interpretation of the Organic Foods Production Act. The Trump administration said the Act doesn’t authorize USDA to regulate the practices that were the subject under the 2017 Organic Livestock and Poultry Practices final rule. “I have directed the National Organic Program to begin a rulemaking to address this statutory interpretation and to include a proposal to disallow the use of porches as outdoor space in organic poultry production over time,” Vilsack says. “The rulemaking will also include other topics that were the subject of the OLPP final rule.” The secretary also says they anticipate sending the proposed rule to the Office of Management and Budget within six to nine months from the date of the remand. “We look forward to receiving public comments on those topics and, after reviewing those comments, USDA will publish a final rule,” he adds.

Wheat Growers Applaud Further Resolution in U.S., UK Dispute

U.S. Wheat Associates and the National Association of Wheat Growers welcomed the announcement that the United Kingdom and the U.S. dropped competing tariffs. The two sides agreed to a five-year moratorium on retaliatory tariffs for large civil aircraft subsidies. This break suspends retaliatory tariffs the UK had in place on non-durum U.S. wheat imports. The long-running dispute at the World Trade Organization allowed the UK and the EU the right to impose tariffs on non-durum U.S. wheat imports, which mainly impacted hard red spring and some hard red winter wheat. “The wheat industry is thankful to President Biden and Ambassador Tai’s commitment to prioritize the trade relationships between the United States, European Union, and now the United Kingdom,” says Wheat Growers CEO Chandler Goule. “Each five-year truce with the U.K. and the European Union removes a significant trade barrier on wheat exports and provides long-term certainty for wheat growers in the Upper Midwest.” Wheat Associates President Vince Peterson is hopeful that this agreement provides the basis for an open dialogue on trade that will pre-empt the use of retaliatory tariffs in the still unresolved steel and aluminum dispute between the U.S. and the UK.

Rural Bankers Say Local Economies are Stronger

For the seventh month in a row, the Creighton University Rural Mainstreet Index stayed above growth neutral. The overall index is still strong at 70, falling almost nine points from May’s record high of 78.8. The index ranges from zero to 100, with 50 being growth neutral. That comes from a monthly survey of bank CEOs in rural areas of a 10-state region that depends on agriculture and energy. Approximately 46 percent of bank CEOs report their local economy expanded between May and June. “Strong grain prices, the Fed’s record-low interest rates, and growing exports have underpinned the rural main street economy,” says Ernie Goss of Creighton University, who oversees the index. He did say that several bankers raised future concerns. Steve Simon, CEO of the South Story Bank in Iowa, says, “Continued dry conditions will start to have an effect on markets and crops soon” For the ninth straight month, the farmland price index advanced significantly above growth neutral. The June farmland index slipped lower but is still strong at 75.9. The June Farm Equipment Sales Index rose to 71.6, the highest level since 2012.

Lamb Board Hosts Zoom Cooking Class to Showcase Lamb

Almost 150 home cooks attended a recent virtual cooking class put on by the American Lamb Board. Educating consumers on using American lamb in their home kitchens is a big part of the board’s efforts to grow the industry. For the Zoom class, the lamb board teamed up with Homemade, a partner of the nature conservancy that offers weekly cooking classes and an earth-friendly blog. Class participants joined chef Joel Gamoran (GAM-eh-ron), the host of A & E’s hit series “Scraps” in making a Lamb Bahn (Bon) Mi (me) burger, which is a Vietnam take on the classic American burger. The dish uses ground lamb mixed with garlic, ginger, fish sauce, honey, lime, and a side of pickled vegetables. Besides his TV series, Gamoran is a regular on NBC’s Today Show, where he showcases recipes that promote environmental sustainability to a worldwide audience. Participants in the online session received a recipe booklet with outdoor cooking American Lamb recipes and an insulated reusable grocery bag from ALB. The cooking class is also a part of the Lamb Board’s Outdoor Cooking Adventures Campaign, which challenges consumers to showcase their outdoor cooking prowess with American lamb.

Dairy Checkoff Launches Monthly Podcast

National and local dairy checkoff organizations are working together to get into podcasting. They’ve launched a monthly program called “Your Dairy Checkoff,” which will showcase how checkoff programs across the country are working together to build dairy sales and trust in today’s changing marketplace. Each episode will be hosted by dairy farmers or industry experts. Listeners will hear conversations focusing on local, national, and global dairy promotion, including consumer research, dairy nutrition, as well as science and issues updates. Farmers will have a hand in the selection of topics by providing feedback. “The dairy checkoff is excited to take advantage of increasingly popular podcast programming to share examples of how the dairy promotion organizations are working together to deliver results for us,” says Missouri dairy farmer Alex Peterson, who serves as Chair of the National Dairy Promotion and Research Board. The first episode is called “Reaching Gen Z: Through the World of Gaming,” and it features a conversation about how the checkoff is looking to online video gaming to reach this consumer segment, which is 10 to 23 years old.

Washington Insider: Confirming an Administration

The process of building a new administration takes time, especially when you consider there are some 4,000 politically appointed positions that need filled each time a new administration takes office in Washington.

Of those 4,000, there are more than 1,200 that the U.S. Senate has to confirm. The Washington Post and the Partnership for Public Service have been tracking the nominees for about 795 of the 1,200 positions requiring Senate confirmation -- include Cabinet secretaries, chief financial officers, general counsels and scores of sub-Cabinet roles that are key in the process of operating the government.

As of mid-June, President Joe Biden has seen 67 confirmed into those positions, putting him ahead of President Donald Trump, but still lacking the pace seen under the presidencies of Barack Obama and George W Bush.

As for Cabinet nominees, Biden actually moved quicker than either Trump or Obama as they took nearly a month longer to get officials confirmed into those roles. And, the Post notes, “Biden is the first president in decades to secure those picks without a failed nominee, despite an evenly divided Senate.” All of Biden's Cabinet picks were confirmed before April.

But it hasn't been a controversy-free run for Biden, either. The White House withdrew the nomination of Neera Tanden to head up the Office of Management and Budget was withdrawn after facing bipartisan opposition. She is the highest profile pick that has not made it through, but the White House opted to pull the nomination rather than have it be defeated in the Senate.

There are several agencies where there have been no nominations made. At the Office of the U.S. Trade Representative, only Katherine Tai has been confirmed out of at least four positions that require Senate confirmation. Sarah Biachi's nomination to be a deputy USTR was sent to the Senate May 27 and nomination of Jayme White as another deputy USTR was sent forward June 9. Both had been announced as nominees April 16.

But no nominee has either been announced or sent to the Senate for the combined post of Deputy USTR and representative to the WTO and key for agriculture, no nominee as the chief U.S. ag negotiator has been announced. But Trump did not send the nomination of Gregg Doud to that role until June 19, 2017, and the Senate Ag Committee favorably reported out the nomination October 24 of that year. It took until March 1, 2018, before Doud was confirmed to the role.

At USDA, Tom Vilsack was announced as Biden's pick as Agriculture Secretary December 8, with the nomination sent forward January 20. The Senate Ag Committee reported out the nomination February 2 -- the same day as his confirmation hearing -- and the Senate confirmed Vilsack to the role February 23.

Trump named Sonny Perdue as his pick to run USDA on January 17, 2017, with the nomination sent to the Senate Ag Committee March 9 and he was reported favorably out of the panel March 30. He was confirmed April 24, 2017.

But few have joined Vilsack at USDA so far, with only Jewell Bronaugh confirmed May 13 as deputy secretary, the number two spot at the agency.

So far, Robert Bonnie has been nominated to be undersecretary for farm production and conservation, with his nomination reaching the Senate April 27. No hearing date has been set. But barring a major setback, he should be in the role quicker than his Trump predecessor, Bill Northey, whose nomination took until September 2017 to be announced and sent to the Senate and the Senate Ag Committee reported his nomination out October 18 of that year. But he did not win full Senate okay until February 27, 2018, as holds were placed on his nomination.

But there has been no one named for undersecretary for trade and foreign agricultural affairs so far in the Biden administration, a post that Vilsack declared an important one during his confirmation hearing. Ironically, that post was created in the 2014 Farm Bill while Vilsack was heading USDA for the Obama administration, yet he never filled that role.

Ted McKinney held the post in the Trump administration after being nominated June 2017, referred to the Senate Ag Committee in August, with the panel favorably reporting out his nomination October 2 and the Senate cleared him October 3.

The Biden administration has named Jennifer Moffitt as undersecretary for marketing and regulatory programs, a seemingly key post in this administration given their focus on market concentration. Her nomination was sent to the Senate Ag Committee April 28, a day after it was announced. But no action beyond that has taken place.

Somewhat surprisingly, there has not been a pick for assistant secretary for civil rights so far by the Biden team. But that post went unfilled for the four years Trump held office.

Sometimes the slowness is getting individuals willing to take the role. Other times, it has been the first or even second choices not being able to make it through the confirmation process. And several Trump nominees that had been lingering at the end of the term of Congress that started with Trump's time in office were sent back to the White House after not being acted on. And some of those nominations were never sent forward again to the Senate.

So we will see. Getting an administration fully staffed can take typically years, at least relative to those positions that require Senate confirmation. But those positions are key for the operations of a host of USDA functions that directly affect farmers so the progress on this front needs to be closely watched, Washington Insider believes.

China Focus on Commodity Prices Continues

China's National Development and Reform Commission (NDRC) on Thursday unveiled new rules for the management of commodity price indices “as part of its ongoing efforts to curb unreasonable price swings and maintain stable prices in the commodity market,” according to a report on the announcement by China Daily.

The new rules take effect August 1 and require those providing price indices to be “independent of the direct stakeholders in the commodity and service markets covered by the index, and the basic information of the index providers, the index compiling plan and other necessary information should be fully disclosed,” the report said, noting that authorities “can conduct compliance reviews and take disciplinary measure for noncompliance.”

Meng Wei, spokesperson for the NDRC, said the agency will “also work with relevant parties to release batches of (reserves) in a timely manner for some time to come, to increase the market supply, ease the strain on enterprises costs and guide the prices to return to a reasonable range.” She noted that efforts to far to address unreasonable and rapid commodity price rises this year “have taken the heat out of market speculation” and that prices for items like iron ore, steel and copper have started to return to more-normal levels.

But she also issued what can be read as a clear warning to market participants: “The NDRC will closely monitor changes in the market, strengthen regulation of both futures and spot markets and maintain the normal order of the market.”