World Bank: Commodity Prices to Drop Through 2024

Global commodity prices are expected to drop this year at the fastest clip since the beginning of COVID-19. A World Bank report says that clouds the prospective growth of approximately two-thirds of the developing economies that depends on exports. The Commodity Markets Outlook says the drop in prices is expected to bring little relief to the almost 350 million people around the world who are facing food insecurity. While food prices are expected to drop by eight percent this year, they will be at their second-highest level since 1975. Food price inflation is at 20 percent globally, the highest level in 20 years. “The surge in food and energy prices after Russia’s invasion of Ukraine has largely passed due to slowing economic growth, a moderate winter, and reallocations in commodity trade,” the report says. Overall, commodity prices are expected to fall by 21 percent in 2023, relative to last year.

House Amendment Preserves Renewable Fuel Tax Credits

Clean Fuels Alliance welcomed an amendment to House legislation that would raise the nation’s debt limit and make substantial changes to clean energy tax credits. The amendment would preserve the biodiesel and renewable diesel blenders’ credits as they are written in current law. “The clean fuels industry thanks all the House members who sought to preserve predictability and stability in tax policy,” says Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. Midwestern House Republicans were also concerned about the bill’s elimination of ethanol tax credits. A manager’s amendment eliminated those provisions that would have eliminated tax credits for biofuels that were part of the Inflation Reduction Act. The amendment added a grandfather clause in a section that eliminates sustainable aviation fuel and alternative fuel tax credits for those engaged in activities who would have received a credit after the Inflation Reduction Act passed and before it was introduced.

Ag Groups Testify on Farm Bill Priorities

American Soybean Association President Daryl Cates testified before the House Agriculture Committee’s Subcommittee on General Farm Commodities, Risk Management, and Credit. Cates offered ASA’s perspectives on the 2023 Farm Bill and asked for help with two priorities under the subcommittee’s jurisdiction. The first was protecting crop insurance, and the second was improving the Title 1 farm safety net for soybeans.  Cates called crop insurance, “The most effective and important component of the farm safety net for soybean farmers.” National Sorghum Producers Chair Craig Meeker also testified during the hearing. “It’s clear that more resources will be necessary to enact a strong farm bill this year as there’s a major shortfall of funding compared to previous bills,” Meeker says. He also reaffirmed his group’s support for crop insurance, noting that he would not be the sixth generation on his family farm without it. Crop insurance has been critical in managing an ongoing drought.

From Drought to Flooding in Six Months

Last fall, the main topic of discussion with historically-low water levels on the Mississippi River and other navigable rivers. Now, high water levels are presenting a challenge to barge transportation, especially along the Upper Mississippi River levels. Significant snowfall and rain over the past several weeks have resulted in a sizable increase in water levels. Many of the Mississippi River locks between St. Paul, Minnesota, and Quincy, Illinois, have been closed by the high water conditions. Many will likely stay closed until the first and second week of May. Mike Steenhoek, executive director of the Soy Transportation Coalition, says, “Closures of these locks will obviously impede the delivery of any remaining soybeans or grain for the export markets. However, lock closures at this time of year will particularly impact northern fertilizer shipments.” The USDA estimates that 2.4 million tons of fertilizer have been delivered during the first 12 weeks of 2023.

USDA Kicks Off Implementation Phase of Partnerships for Climate-Smart Commodities

The USDA kicked off the implementation phase for projects funded through the $3.1 billion Partnerships for Climate-Smart Commodities effort. As projects get started, the agency is also launching the Partnerships for Climate-Smart Commodities Learning Network, which will generate key lessons learned as projects get implemented. “Farmers, ranchers, and forest landowners are on the frontlines of climate change,” says Ag Secretary Tom Vilsack. “At the same time, they are uniquely positioned to deliver climate solutions through climate-smart production that reduces greenhouse gas emissions and sequesters carbon.” Vilsack also says through these projects, the agency’s partners are working to create new markets for climate-smart commodities while developing the tools needed to quantify impacts and help producers implement those climate-smart practices on their land. Producers interested in participating in projects can go to the Partnerships for Climate-Smart Commodities Active Project Dashboard to find projects in their areas. For more information on projects, go to usda.gov.

Canadian Farmers Planting More Wheat This Year

As Canadian farmers gear up for spring planting, they expect to plant more wheat this year and increase crops of canola and soybeans. The University of Illinois’ Farm Policy News says, “Canada’s farmers forecast planting 26.97 million acres of wheat in 2023, six percent higher than 2022 but still well below the 8.2 percent annual increase recorded last year.” The spring wheat area will increase 7.5 percent to 19.39 million acres, durum wheat is predicted to edge up 0.9 percent to just over six million acres, and the winter wheat area is anticipated to jump more than 12 percent to 1.52 million acres. Geopolitical concerns may be behind Canada’s increasing wheat crop. Canada’s farmers are planting the most wheat in 22 years as the war in Ukraine and a significant drought in the U.S. tighten global supplies. Global wheat stocks and vegetable oil supplies are limited by obstacles facing Ukraine’s exports

Friday Watch List

Markets

The Federal Reserve's preferred inflation gauge, the PCE index, will be out at 7:30 a.m. CDT Friday, the same time as the employment cost index for the first quarter and reports on U.S. personal incomes and spending in March. The University of Michigan's consumer sentiment index for April will be out at 9 a.m. Traders will keep up on the latest weather forecasts and pause at 8 a.m., not knowing if USDA has an export sale, a cancellation or neither.

Weather

A couple of systems are pushing through the country on Friday, producing areas of scattered showers from the Southern Plains to the Northeast and places in between. Some stronger thunderstorms will be possible across Texas later today as well as some breezy winds behind a front across the western Plains.

NCGA Outlines Farm Bill Priorities

Corn growers are optimistic that Congress can make key farm bill programs more effective and responsive to the needs of farmers, according to the National Corn Growers Association. NCGA President Tom Haag, a Minnesota farmer, testified to the House Agriculture General Farm Commodities, Risk Management, and Credit Subcommittee. The committee hearing focused on stakeholder priorities for the crop insurance and commodity titles. Haag says, "Corn growers consistently rank crop insurance as the most important program and title of the farm bill. NCGA broadly supports increasing the affordability of crop insurance." Haag also offered recommendations for the commodity title, saying NCGA supports increasing the maximum rate in the Agriculture Risk Coverage County program to provide increased assistance to growers who experience significant revenue losses. Haag says NCGA recommends increasing the coverage level for ARC County to make the program more responsive to revenue losses. NCGA supports the improvement of the Price Loss Coverage program, investment to expand international markets and trade promotion.

NCBA Reiterates Importance of Food Safety, Opposes PRIME Act

The National Cattlemen's Beef Association Wednesday once again announced opposition to the Processing Revival and Intrastate Meat Exemption, or PRIME Act. Representatives Thomas Massie, a Kentucky Republican, and Chellie Pingree, a Maine Democrat, introduced the bill. The legislation would allow beef processed in a non-U.S. Department of Agriculture inspected facility to be distributed interstate, posing a threat to food safety and consumer trust in beef. NCBA President Todd Wilkinson says, "While the PRIME Act is well-intentioned, allowing uninspected beef to enter the retail market is dangerous to consumers." NCBA supports federal and state meat inspection efforts and has previously supported legislation like the DIRECT Act. That legislation would allow state-inspected beef to be sold interstate in limited quantities, direct-to-consumer, and through e-commerce. Unlike the PRIME Act, these measures would create the necessary paper trail to trace and contain any potential food safety concerns.

AEM Calls on Congress to Bolster American Competitiveness

The Association of Equipment Manufacturers is mobilizing thousands of industry supporters through its I Make American grassroots campaign. The supporters call on lawmakers to address national priorities, including modernizing the permitting process necessary to build critical infrastructure and boost domestic energy production. Other priorities include ensuring that infrastructure funding moves expeditiously from Washington to urgently needed project sites, and passing a farm bill to guarantee a safe and abundant food supply for all Americans. AEM’s Kip Eideberg says, "Lawmakers must act to ensure that the 2.3 million men and women of our industry can out-innovate and outcompete the rest of the world. The campaign includes 88,000 letters to Capitol Hill. AEM’s I Make America campaign engaged CONEXPO-CON/AGG 2023’s 139,000 attendees to raise awareness for the policies that will strengthen the industry and ensure that equipment manufacturers can continue to make the equipment that builds, powers, and feeds the world.

USDA: Meat and Dairy Production Lead Food Sector Sales

New data from USDA’s Economic Research Service shows meat processing and dairy product manufacturing are the largest components of food sector sales. Food and beverage manufacturing plants transform raw food commodities into products for intermediate or final consumption by using labor, machinery, energy, and scientific knowledge. These plants accounted for nearly $267 billion or 16.8 percent of sales, shipment values, and revenue from all U.S. manufacturing plants in 2021, according to the latest data from the U.S. Department of Commerce, Bureau of the Census’ Annual Survey of Manufactures. Meat processing is the largest industry group in food and beverage manufacturing, with 26.2 percent of sales in 2021. Meat processing includes livestock and poultry slaughter, processing, and rendering. Dairy product manufacturing, which ranges from fluid milk to frozen desserts, accounted for the second-most sales at 12.8 percent in 2021. Other important industry groups by sales include other foods, beverages, and grain and oilseeds. Other foods include snack foods, coffee and tea, flavorings, and dressings.

NFU: Colorado Right to Repair Law a Win for Farmers Across the Country

The National Farmers Union calls the signing of Colorado’s Right to Repair law a win for all farmers and ranchers. Colorado Governor Jared Polis signed the Consumer Right to Repair Agricultural Equipment Act this week. NFU President Rob Larew says, "seeing a bill like this cross the finish line is a testament to the persistence of our members and the need for this issue to be addressed nationally." Major farm equipment manufacturers have refused to make the software tools necessary to repair modern tractors, combines, and other farm equipment available to farmers and independent mechanics. This leaves farmers no choice but to take their broken equipment to licensed dealerships, which has led to repair delays and inflated repair costs. Right to Repair is a key issue in NFU's Fairness for Farmers campaign, which aims to build fairer and more competitive agricultural markets, and to address the monopoly crisis in agriculture.

USDA’s CLEAR30 Enrollment Open

Farmers and landowners with certain expiring Conservation Reserve Program contracts can receive additional rental incentives and extend that land’s role in conservation for another 30 years. The Department of Agriculture has opened the signup period for its Clean Lakes, Estuaries, And Rivers enrollment, known as CLEAR30, now through July 31, 2023. CLEAR30 is a part of the CLEAR initiative, which prioritizes water quality practices as a part of Continuous CRP enrollment, and is one of several CRP enrollment opportunities. CLEAR30 allows producers and landowners enrolling certain water quality practices to enroll in 30-year contracts, extending the lifespan and strengthening the benefits of important water quality practices on their land. Like other CRP enrollments, CLEAR30 is a voluntary, incentive-based conservation opportunity offered by USDA’s Farm Service Agency. To sign up for CLEAR30, landowners and producers should contact their local USDA Service Center by July 31, 2023.

Thursday Watch List

Markets

USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as U.S. weekly jobless claims, first-quarter U.S. GDP and an update of the U.S. Drought Monitor. An index of U.S. pending home sales in March is out at 9 a.m., followed by the Energy Department's natural gas storage report at 9:30 a.m.

Weather

A system is moving across the South with areas of thunderstorms and heavier rainfall. This system continues to press eastward and may contain some severe storms near the Gulf Coast. To the north, another system is moving through the Northern Plains and will produce scattered showers as its cold front dives south throughout the day. Frosts occurred in the eastern Midwest again this morning, yet another day of risk for more-advanced wheat and emergent corn and soybeans.

Number of U.S. Farms Continues to Decline

New data released Tuesday by USDA’s Economic Research Service shows the number of U.S. farms continues to decline. After peaking at 6.8 million farms in 1935, the number of U.S. farms and ranches fell sharply through the early 1970s. Researchers say the rapidly falling farm numbers in the mid-20th century reflect the growing productivity of agriculture, increased mechanization, and increased nonfarm employment opportunities. Since 1982, the number of U.S. farms has continued to decline, but much more slowly. In 2022, there were 2.0 million U.S. farms, down from 2.2 million in 2007. Similarly, the acres of land in farms continue a downward trend with 893 million acres in 2022, down from 915 million acres ten years earlier. The average farm size in 2022 was 446 acres, only slightly greater than the 440 acres recorded in the early 1970s. The data comes as USDA this year predicts net farm income at $136.9 billion in calendar year 2023, a decrease of $25.9 billion relative to 2022.

Inflation Impacting Organic Fresh Produce Sales

Inflation continued to impact organic fresh produce sales in the first quarter of 2023. Overall dollar sales grew by slightly less than one percent, and volume declined by 3.4 percent from the same year-over-year period. The data was released by the Organic Produce Network this week and included in its Q1 2023 Organic Produce Performance Report. Overall, the total produce department gained 2.6 percent in dollars for Q1 2023 compared to the same period in 2022 and declined by 1.3 percent in volume. Sales of organic fresh produce totaled nearly $2.4 billion for the first quarter of 2023, while overall volume topped 703 million pounds. Conventional produce dollars rose higher than organic dollars by about two percent and declined in volume by a smaller degree than organic. Current trends show both conventional and organic produce volume shrinking year over year. However, while volume for conventional produce is below 2020 and organics are on par with 2020, both are consistently gaining in dollars.

Coalition Urges Protection of IRA Conservation Funds in Farm Bill

A coalition of lawmakers urges the House Agriculture Committee to protect the nearly $20 billion from the Inflation Reduction Act for climate-smart agriculture programs in the upcoming 2023 Farm Bill. The House Sustainable Energy and Environment Coalition made the request this week in a letter to Committee leadership. The letter states, “The $19.5 billion in Inflation Reduction Act investments for Farm Bill Title II conservation programs and technical assistance within USDA is critical to fighting climate change, and the next Farm Bill represents a significant opportunity to strengthen climate-resilience.” The letter was signed by coalition co-chairs, Representatives Chellie Pingree and Kim Schrier, along with the 16 other members of the task force. The letter explains that because agriculture also holds the potential to store significant quantities of carbon, it represents a unique opportunity to tackle climate change. The coalition was founded in January 2009 to advocate for policies for clean energy innovation, environmental protection, and policies that address global climate change.

USDA Proposes Changes to Salmonella Regulations for Select Poultry Products

USDA's Food Safety and Inspection Service proposed to declare Salmonella an adulterant in breaded stuffed raw chicken products. Under the proposal, FSIS would consider any breaded stuffed raw chicken products that include a chicken component that tested positive for Salmonella at one colony forming unit per gram before stuffing and breading to be adulterated. FSIS also proposes to carry out verification procedures, including sampling and testing the chicken component of breaded stuffed raw chicken products prior to stuffing and breading, to ensure producing establishments control Salmonella. Agriculture Secretary Tom Vilsack says the proposal "represents the first step in a broader effort to control Salmonella contamination in all poultry products." The announcement is part of USDA's proposed regulatory framework to reduce Salmonella infections linked to poultry products, released in October 2022. The Centers for Disease Control and Prevention estimates that Salmonella bacteria cause approximately 1.35 million human infections in the United States every year, with 23 percent attributed to poultry consumption.

USDA APHIS Announces New Strategic Plan

USDA's Animal and Plant Health Inspection Service Tuesday released a new five-year strategic plan for the agency. The plan incorporates input received from stakeholders on the strategic framework published in June 2022. The plan includes six strategic goals, outlining the objectives and performance measures that set the direction for the agency. The goals focus on protecting agriculture from plant and animal diseases and pests, positioning the agency's workforce to better meet current and future challenges, delivering solutions that reduce the impacts of zoonotic and emerging diseases, and ecosystem changes, such as climate change, expanding safe trade, managing wildlife diseases, and promoting the welfare of animals. The Animal and Plant Health Inspection Service protects the health of U.S. agriculture and natural resources against invasive pests and diseases, regulates genetically engineered crops, administers the Animal Welfare Act, and helps people and wildlife coexist. APHIS also certifies the health of U.S. agricultural exports and resolves phytosanitary and sanitary trade issues.

Vroom Joins Stratovation Group Board

Stratovation Group Tuesday announced the addition of Jay Vroom to its Board of Advisors. After retiring as President and CEO of CropLife America, Vroom continues to be active as an agricultural leader and consultant to numerous national agricultural organizations. Vroom says, “Stratovation is bringing exciting new energy to the food and ag market with innovative approaches to both research and strategic advice for clients.” Vroom joins other executives on the Stratovation Group Board of Advisors, including Missouri Farmer Blake Hurst; Russ Green, managing director of MACKAYBEN; Kristen Snow, CEO of Level D&I; Jenn Wells, president of TalentID; and Ward Hill, CEO of Candor Hill. Stratovation Group Chief Operating Officer Mace Thornton says of Vroom, “He’s the kind of person who cares and you want to have in your corner.” Stratovation Group provides market research and intelligence, strategy and consulting, marketing and branding, along with web content services to the agricultural sector.

Wednesday Watch List

Markets

A report of U.S. durable goods orders in March will be watched at 7:30 a.m. CDT Wednesday as the market is wary of a possible slowdown in the economy. The U.S. Energy Department will have its weekly inventory report at 9:30 a.m., including ethanol production. As usual, the latest weather forecasts will also be of interest.

Weather

A storm system has been and continues to produce heavier rainfall in the Southern Plains on Wednesday. The rain does come with a risk of severe storms, mostly across parts of central Texas, but the heavy rain should reduce the impacts of the deep drought that have gripped the region. Still, one storm will not eliminate drought. Other showers will move across the Northern Plains and Canadian Prairies throughout the day as well. Cold temperatures remain in place with frosts this morning and another day of risk tomorrow across the eastern Midwest.

Court issues another blow to WOTUS

Another day, another ruling against the Biden Administration’s Waters of the United States rule. This time the Sixth Circuit Federal Court of Appeals issued a stay on enforcing the rule in Kentucky until May 10. That means WOTUS is now the law of the land in only 23 states.

Kentucky Attorney General Daniel Cameron says the ruling stops the Biden administration from enforcing what he considers to be a burdensome rule.

“This is an important win for Kentuckians, especially our farmers, who were being unnecessarily burdened by these new restrictions,” Cameron says. “We are grateful to the court and will be working to make this ruling permanent in the weeks and months ahead.”

A federal judge had previously denied a request by the State of Kentucky and the Kentucky Chamber of Commerce to issue an injunction against WOTUS. The State and Chamber then asked the appellate court to issue a stay pending their appeal.

In their ruling, Circuit Court Judges Ralph Guy, Raymond Kethledge and John Bush said they granted the stay because the federal government failed to identify any particular interest in immediate enforcement of WOTUS.

“Given the circumstances, an administrative stay is necessary to preserve the status quo and to provide us with the opportunity to give reasoned consideration to the plaintiff’s motion for an injunction pending appeal,” the judges said in their ruling.

This is the latest in a series of legal blows against WOTUS. In March, a federal court judge issued an injunction halting the rule in Texas and Idaho. On April 12, a North Dakota District Court Judge issued an injunction against the law in 24 additional states.

While multiple lawsuits continue to make their way through various courts, all eyes remain on the Supreme Court and its ruling in the Sacket v. EPA case. That ruling is expected by early summer. Many observers believe the court’s decision could significantly limit EPA’s regulatory authority.

AFBF: Families Deserve Truth in Food Labeling

America's families deserve to know what they're buying when shopping in the dairy aisle, according to the American Farm Bureau Federation. AFBF Monday filed comments with the Food and Drug Administration. The comments call on the agency to enforce food labeling standards for dairy substitute products and enforce existing prohibitions on the misleading labeling of nut- and other plant-based beverage products as "milk." AFBF supports a consumer's right to access dairy-free products, but one in four Americans, 83 million people, are confused or have been misled about whether dairy alternatives contain milk, according to a survey used by FDA. AFBF Public Policy Vice President Sam Kieffer says, "Consumers know the healthiness of dairy labels such as 'milk' and may infer that any product bearing this term possesses the same or an equivalent nutritional profile." AFBF is urging FDA to require non-dairy products to be labeled accurately, as is required in several markets outside of the U.S. For instance, "almond milk" is labeled "almond beverage" in Canada.

USDA Announces New National Institute of Food and Agriculture Director

The Department of Agriculture Monday announced the appointment of Manjit K. Misra as the new Director of the National Institute of Food and Agriculture. Agriculture Secretary Tom Vilsack says, “Dr. Misra is an esteemed scientist and educator whose devotion to studying and sharing his knowledge of seeds with the world will benefit society and inspire generations to come.” Before joining USDA, Dr. Misra served as a Professor of Agricultural and Biosystems Engineering at Iowa State University. For more than 30 years, he was Director of the university’s Seed Science Center. The center has administered the National Seed Health System, authorized by USDA's Animal and Plant Health Inspection Service, since 2001. Dr. Misra also was founding Director of the Iowa State’s Biosafety Institute for Genetically Modified Agricultural Products. The NIFA Director leads the agency’s work in advancing agricultural research, education, and extension to solve societal challenges. Dr. Misra will start his new role on Monday, May 8, 2023.

Winter Cover Crops Could Reduce Nitrogen in Drainage Water

As Corn Belt states seek ways to curb nitrogen flow from farms into the Gulf of Mexico, new research suggests winter cover crops can help. Research from the University of Illinois finds widespread planting of cereal rye in Illinois could reduce nitrate in the state's tile drainage water by 30 percent. The team simulated both cover crop planting and fertilizer timing under real climatic conditions in Illinois between 2001 and 2020. They used a crop simulation model known as Decision Support System for Agrotechnology Transfer, which allows multi-year growth projections for more than 42 crops. Two management implications were revealed in the study. One is that farmers should apply a winter cover crop, such as cereal rye, to reduce tile water flow and nitrate loss by 25 and 30 percent, respectively. The data also reinforced that farmers should switch to spring fertilization, if possible. Cover crop adoption remains low in Illinois and the Midwest despite the availability of cost-sharing programs and growing evidence touting benefits.

California Lawmakers Request Disaster Relief for Farmers

A coalition of California lawmakers Monday requested a disaster recovery package to aid California farms and ranches devastated by historic storms earlier this year. The coalition, which includes Representatives Jim Costa, Jimmy Panetta and Zoe Lofgren, made the request in a letter to House leadership. The letter states, “We, therefore, request a disaster recovery package be swiftly put together to allow the rebuilding and recovery process to begin,” From December 27, 2022, to January 16, 2023, California had nine atmospheric rivers–each of which held as much water as a hurricane–producing powerful storms. Areas of California saw more than $500 million in estimated flood and storm damage to agricultural operations. Subsequent storms in California from February through March complicate recovery efforts further–with claims filed with the Farm Service Agency already numbering more than 1,000 and assessments still ongoing. California has more agricultural production than any other state in the union, with nearly 70,000 farms operated on 24.3 million acres.

USDA: Number of Limited-Service Restaurants in Rural America Growing

The food-away-from-home retail landscape continues to evolve. USDA’s Economic Research Service recently examined the changing food-away-from-home landscape in nonmetropolitan counties between 1990 and 2019, with a focus on the most rural counties. As of 1990, full-service restaurants were the most common restaurant type, making up 76 percent of all food-away-from-home establishments in these counties. However, over the last several decades, the composition shifted. While full-service restaurants remain the most common in rural counties, their prominence has fallen from about 75 percent of establishments to about 50 percent of establishments in 2019. By contrast, quick-service restaurants have become increasingly popular. Quick-service restaurants accounted for 18 percent of the total number of establishments in rural counties in 1990 but have since doubled, making up 36 percent of all food-away-from-home establishments in 2019. USDA researchers conclude that the shift could affect overall food options available for consumers in these rural areas.

Sorghum Bran Rises as an Ingredient for Enhancing Gluten-Free Bread

Sorghum bran, often a low-cost byproduct of sorghum milling, can enhance gluten-free bread's nutritional value without compromising its flavor, according to a new study. USDA’s Agricultural Research Service studied sorghum bran to improve gluten-free foods. One of the USDA researchers says, “we used optimization models to create a gluten-free bread with enhanced dietary fiber while preserving other desirable bread attributes such as color, texture, and flavor.” The study found that people liked the gluten-free bread that contains 14.2 percent sumac sorghum bran. According to the National Institutes of Health, about two million people in the United States have celiac disease, an autoimmune condition, and must avoid dietary gluten, a protein found in wheat, rye, and barley. Additionally, over 20 percent of U.S. consumers purchase gluten-free products without a medical reason. The potential health benefits provided by tannin-containing sorghum bran in gluten-free foods can benefit consumers who must avoid gluten as well as those seeking other food options.

Tuesday Watch List

Markets

Traders will keep up with the latest weather forecasts and pause at 8 a.m. CDT Tuesday for a possible export sales announcement. Reports on U.S. new home sales in March and consumer confidence in April will both be out at 9 a.m. USDA's monthly report of cold storage follows at 2 p.m.

Weather

A storm system will enter into the Southern Plains on Tuesday, with increasing coverage and intensity of showers and thunderstorms throughout the day, providing some relief for the hardest-hit drought areas in the country. Colder temperatures continue east of the Rockies, limiting fieldwork and planting.

Natural Gas May Get More Expensive in the Future

Natural gas is an important source of energy for U.S. farms. While U.S. natural gas futures prices have fallen sharply recently, CoBank says higher prices and increased volatility could be on the long-term horizon as the energy transition accelerates and European markets respond to recent supply constraints. Rising U.S. exports of liquefied natural gas, fewer opportunities for fuel switching between coal and gas, and supply chain bottlenecks may contribute to higher domestic energy costs in the future. “Over the past 100 years, the U.S. has been a natural gas island with domestic supply sufficient to meet the nation’s requirements,” says a CoBank report. “From a pricing perspective, domestic consumers benefited from their proximity to natural gas reserves and experienced only brief periods of high prices.” However, as natural gas production expanded, it became necessary for exports to grow, increasing potential price volatility as the U.S. and EU markets became more connected.

Consumers Save 25 Cents a Gallon With E15

A new analysis from the Renewable Fuels Association shows American drivers saved an average of more than 25 cents per gallon since the beginning of 2022 with E15. RFA analyzed more than 3,000 actual pump prices for E15 and E10 submitted by drivers to E15prices.com. The average of 1,520 prices reported for E10 was $3.69 per gallon, while the average for corresponding E15 prices was $3.41 per gallon. Thus, the average discount for E15 was 27 cents per gallon or 7.4 percent. “The review of prices submitted by drivers shows lower-carbon E15 is providing real savings for American families,” says RFA President and CEO Geoff Cooper. “At a time when U.S. drivers were facing record high gas prices, this report confirms that E15 delivered relief at the pump.” As a result, Cooper’s group is urging the administration to carefully review data as it considers allowing the sale of E15 this summer.

FDA Extends Comment Period on Plant-Based “Milk” Labeling

The U.S. dairy industry is concerned about plant-based milks in grocery stores carrying the label “milk.” The Food and Drug Administration announced it is reopening the public comment period on draft guidance for labeling plant-based products. “The FDA is reopening the comment period in response to requests from industry stakeholders for more time for interested people to develop and submit comments,” the agency says. Food Safety News says the draft recommendations were initially published in February and are for industry comments on naming plant-based beverages that are marketed and sold as alternatives to milk. The draft guidance also recommends voluntary nutrient statements for labeling some of the plant-based milk alternatives. Products made from plant materials like tree nuts and legumes are often labeled “milk.” The FDA’s draft guidance from February doesn’t apply to other plant-based dairy alternatives like plant-based cheese or yogurt alternatives. Interested parties can submit their comments at regulations.gov.

China Aims for More Self-Sufficiency in Food Production

China is one of the biggest trading partners for the U.S. However, the South China Morning Post says the Southeast Asian nation may be attempting to change that. The country aims to increase soybean production this year in an attempt to become more self-sufficient and import less food. Escalating geopolitical tensions are one of the big reasons for the change. China will try to increase its national soybean yield by 11 pounds per mu, which is a Chinese unit of land measurement equal to approximately 0.165 acres. China imports more than 80 percent of the soybeans used to feed its people and livestock, and shipments come mainly from Brazil and the U.S. That heavy reliance on imported commodities has raised significant governmental concerns about its food security. However, Chinese farmers appear less motivated to grow beans than last year because of the low market price of soybeans and their low benefits.

Lamb Board Releases Final Video in Lamb Quality Series

The American Lamb Board released the final video in its five-part series emphasizing lamb quality. The final video’s title is “Retail Meat Yield.” The overall goal of the video series is to help the U.S. lamb industry provide a consistently high-quality product for Americans’ dinner plates. “By emphasizing lean meat growth in U.S. sheep, we can make lambs with more muscle and less fat and improved yield and value,” says Peter Camino, ALB Chair. “That increases our commercial lamb industry competitiveness with imported lamb and other animal protein sources.” He also says it’s in the best interest of progressive sheep producers to produce a protein product that consistently meets consumers’ expectations and delights their taste buds.” Trim, muscular lambs harvested at the appropriate time return more value for the entire U.S. sheep and lamb industry. “Retail Meat Yield” is available at LambResourceCenter.com or on the American Lamb Board’s YouTube channel.

Corn, Soybean Export Sales Drop

Data from USDA shows that corn and soybean sales to overseas buyers declined in the seven days ending on April 13. Exporters sold 312,400 metric tons of corn for offshore delivery for 2022-2023, down 41 percent from the prior week and 79 percent from the four-week average. The top three buyers were China, Saudi Arabia, and Colombia. Exports rose 42 percent to 1.3 million metric tons. USDA says soybean sales were down 73 percent week-over-week to 100,100 metric tons for 2022-2023. The top three buyers were the Netherlands, Mexico, and China. The USDA report says exports dropped 15 percent week-over-week to 582,800 metric tons. Wheat sales improved 91 percent from the prior week and 93 percent from the four-week average, coming in at 259,000 metric tons. South Korea was the top wheat buyer, followed by Taiwan and the Philippines. Overall exports for the week dropped 28 percent to 202,800 metric tons.

Top 5 Things to Watch - Cold Slows Crop, Markets Look for Direction, Economic Reports Weigh In

OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 23. Watch for coverage of these and other topics throughout the week on our subscription platforms.

1. Crop (sort of) progress: We're a bit anxious to get the weekly USDA Crop Progress report Monday afternoon, as DTN reporters have been noting a lot of equipment moving in the central and lower Midwest the past two weeks. Some early corn is beginning to spike in Illinois and surrounding areas. That's the complete opposite of conditions in the upper Midwest, where last week's snow squalls and another cold shot this week are keeping shed doors closed.

2. Weather continues to throw curve balls: The frost and freeze advisories from the weekend could continue through the early part of this week, into areas with that spiking corn. The system moving across the Southern Plains could bring rain, along with some colder-than-wanted temperatures there.

3. Markets looking for direction: Mixed signals pick up in ag markets. The continued slow thaw, and lack of fieldwork, in the north is beginning to get trade attention, but any bullishness there may be shadowed by Brazilian corn and soy crops that appear larger each week. Look for more on both of those fronts.

4. Economic reports weigh in: This week also is filled with a number of broader economic touchstones that analysts will be touching on. Wednesday brings March U.S. durable goods orders and weekly U.S. energy inventories. Thursday morning will break with USDA weekly export sales, weekly U.S. jobless claims and first-quarter U.S. GDP reports. Friday we'll watch first-quarter employment cost index reports.

5. Irrigation companies pivot on parts availability: The heavy winds of the past few seasons have made many irrigation systems look like Tinker Toys after a 2-year-old's temper tantrum. That's put a stressor on parts for damaged systems as well as hindered farmers wanting to add new pivots. DTN Reporter Russ Quinn will investigate how pivot manufacturers are working to get the water flowing again.

Monday Watch List

Markets

Starting a new week, traders will check the latest weather forecasts and be attentive to any news affecting outside markets. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Recent concerns include planting in the Northern Plains, falling soybean prices in China and the condition of Brazil's corn crop.

Weather

A trough of low-pressure overhead continues cold temperatures across most areas east of the Rockies Monday, including some frosty temperatures this morning as far south as Oklahoma and Tennessee. A small trough moving down the Rockies will develop showers in the Southern Plains later today, which will be enhanced over the next couple of days, bringing optimism for those in drought.

U.S. Government Planning Year-Round Sales of E15 Next Year

The Biden administration is planning to begin year-round sales of E15 in 2024. Oil Price Dot Com says the Environmental Protection Agency feels the move will help reduce the retail price of fuel. Eight Midwestern states originally asked the EPA for waivers to provide E15 fuel this summer. EPA chief Michael Regan says the agency studied if they could make the change this year but decided there wasn’t enough time to allow for final adequate rule-making. Regan told the House Agriculture Committee that the agency will look into issuing temporary emergency waivers to allow sales of E15 this summer. The EPA proposed a rule in March that would allow year-round sales of E15 beginning in 2024. “There would be a significant disruption to consumer pricing and the like if we moved too quickly in 2023,” Regan says. “We are confident year-round E15 sales will be ready to go in 2024.

Oklahoma Signs Trade Pact with the UK

British Trade Minister Nigel Huddleston signed a trade deal with the state of Oklahoma during a recent trip to Washington, D.C. Oklahoma Governor Kevin Stitt says the pact will focus on increasing trade through wider economic development on both sides of the Atlantic Ocean. It will also maintain a focus on reliable and affordable energy. As Oklahoma and the UK grow their economies through increased trade and development cooperation, that will strengthen businesses and create jobs on each side. The agreement will also allow the sides expand academic and research ties, as well as together in agriculture and food production. “Both the United Kingdom and Oklahoma share the same vision for providing reliable, affordable energy for our citizens,” Stitt says. “We can learn a lot from each other.” After the signing, Huddleston said, “I’m delighted that we’ve taken an important step forward in deepening our commercial and economic ties with Oklahoma.”

U.S. Dairy Leading on Climate Coalition

The National Milk Producers Federation and the U.S. Dairy Export Council have signed a set of principles and a new partnership with National Agricultural Organizations from several other countries. The goal is to constructively engage governments and international organizations around the world on the issues of livestock, agriculture, climate, and trade. The countries in the new partnership include Argentina, Brazil, Paraguay, Uruguay, Chile, Bolivia, and Colombia. USDEC and the NMPF will coordinate and support engagements with government officials and international organizations in promoting policies that encourage sustainable productivity growth while taking into consideration the unique needs of the livestock industry as well as profitability for farmers. The U.S dairy groups point out that, “Far too often, global convenings and climate proposals reflect ideologies at the expense of science, ignore any progress that the industry already made in reducing emissions, and try to impose one-size-fits-all solutions on industries they don’t fully understand.”  

Smithfield Foods Wins Environmental and Safety Awards

The North American Meat Institute recently held its 2022 environmental awards and worker safety recognition programs. Smithfield Foods won awards for its environmental and safety achievements. “Protecting the environment, including decreasing our carbon footprint, implementing water conservation strategies, and reducing packaging have all been Smithfield priorities for decades,” says Stewart Leeth, chief sustainability officer for Smithfield. “These priorities are all part of our constant commitment to producing good food the right way.” Five Smithfield facilities were recognized with NAMI’s environmental recognition awards, which acknowledge commitment to continuous environmental improvement through the development and implementation of Environmental Management Systems. Forty of the company’s facilities were recognized with Tier 4 awards, the highest recognition in the category. Also, 29 Smithfield locations earned the organization’s highest worker safety recognition awards. Smithfield earned an honorable mention in the DEI category for its industry-leading programs that attract and retain minority and underrepresented employees and customers.

Legislation to Improve Flexibility of Farmland Conservation Program

Senators Michael Bennett of Colorado and Roger Marshall of Kansas introduced the Conservation Reserve Enhancement Program Improvement Act. The bill would provide the flexibility family farmers and ranchers need to conserve water on working lands while fairly compensating them for retiring their water rights or limiting their water use. “With the CREP Improvement Act, we can give farmers the flexibility they need to conserve their water supply and pass their operations to their kids and grandkids,” Bennett says. The act would improve the CREP program in several ways, including directing USDA to allow dryland agricultural uses on CREP acreage where appropriate. Other improvements include specifically adding dryland crop production and grazing to the list of appropriate conservation practices for the CREP program. “Time and again, we hear USDA is being too rigid in their interpretation of good programs, and this bill will help give farmers and ranchers more flexibility,” Marshall says.

Iowa Legislature Passes Bill Allowing Raw Milk Sales

It’s taken years, but the Iowa Legislature gave its final approval on a bill that would allow Iowa residents to buy fresh-from-the-farm raw milk. After several failed attempts, the state Senate approved the final bill 37-13 and sent it to Governor Kim Reynolds for her signature. The bill previously passed the Iowa House with amendments. It allows producers to sell unpasteurized milk from their farms directly to Iowa residents, as well as cheese, yogurt, ice cream, and other raw milk products. “I call it the fresh milk bill,” says Senator Jason Schultz, the bill’s manager on the Senate floor. He told the Des Moines Register that he’s waited 17 years for a raw milk bill to get through the Iowa legislature. The bill’s supporters say raw milk tastes better and has more nutrients. Opponents say it can contain bacteria that are dangerous to children and could spark a public health outbreak.

Friday Watch List

Markets

After two days of bearish risk-off selling, traders may be a little touchy at the end of the week, but Thursday's economic news was not encouraging. Traders will continue to keep watch over the latest weather developments and any talk of what the Federal Reserve will do on May 3. At 2 p.m. CDT, USDA will issue the cattle on-feed report for April 1, the only significant report of the day.

Weather

A storm system spinning in northern Minnesota is producing scattered snow showers across the Northern Plains and Upper Midwest, which may come in short, heavy bursts at times throughout the day. A front is bringing showers from far east Texas to Indiana that will be pushed eastward throughout the day. Cold temperatures are filling in behind the front, which will lead to some frosty morning temperatures in the Plains over the weekend.

Continuing Contract Negotiations at West Coast Ports Concerning

Increasing attention is getting devoted to the West Coast port contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union. The concern is because of the recent and continued slowdowns and temporary work stoppages at the Ports of Los Angeles and Long Beach. “Given how the tension between the two parties appears to be increasing, this topic will likely remain a significant point of discussion for the foreseeable future,” says Mike Steenhoek (STEEN-hook), executive director of the Soy Transportation Coalition. A recent work stoppage from April 6 to April 7 at both ports and the subsequent slowdowns were “deliberately disruptive,” according to the PMA, the group that represents 70 terminal operators. The two parties have been negotiating a new five-year contract since July 1, 2022. These negotiations don’t apply to the bulk of exports of soybeans and grain from Pacific Northwest ports, which operate under separate contracts.  

Farm Lending Slows as Interest Rates Rise

Growth in farm lending activity at commercial banks was limited in the first quarter of 2023 as interest rates climbed higher. The Kansas City Fed says alongside additional increases in the federal funds’ rates, interest rates on farm loans rose sharply. The rapid rise has shifted the range of rates offered to borrowers considerably higher. Non-real estate farm loan volumes decreased about 10 percent from the previous year in the first quarter of 2023, following average growth of 15 percent in 2022. Lending activity was pushed down by fewer new loans and smaller-sized operating loans. The outlook for farm finances remains favorable alongside elevated commodity prices, but higher interest rates, increased production costs, and drought remain key ongoing concerns. Strong farm income during recent years has bolstered liquidity for many producers and supported historically strong farm loan performance. Despite higher interest rates, the availability of credit remains strong at agricultural banks.

USCA Affirming Safety, Transparency of Beef Supply Chain

The U.S. Cattlemen’s Association responded to efforts in the Missouri State Legislature to regulate products sold, distributed for use, or administered to a person that are designed to alter their genome. Missouri House Bill 1169 attempts to implement a regulatory framework for labeling products that could act as “gene therapy” or that could potentially impact, alter, or introduce genetic material or a genetic change in the user. This came about because of concerns that mRNA vaccines are being introduced into the nation’s cattle supply. “The USCA strongly supports truth in labeling on consumer goods and full transparency throughout the supply chain,” the group said in a statement. “Currently, there are no mRNA vaccines licensed for beef cattle in the U.S..” Similar legislation is also being introduced in Tennessee, Arizona, and other states. The USCA will be forming a task force to develop a fact- and science-based assessment of the issue.

WOTUS Veto Override Fails in Congress

The House of Representatives was unsuccessful in getting enough votes to override President Biden’s veto of legislation undoing a rule defining the Clean Water Act’s jurisdiction. The vote failed 227-196 and didn’t meet the two-thirds requirement for overriding a presidential veto. Successful Farming says Republicans persuaded ten Democrats to vote against the Biden EPA’s rule, including House Ag Ranking Member David Scott (D-GA) and Rep. Sanford Bishop (D-GA). The rule specified what wetlands, streams, and other waterways qualify for federal protection as Waters of the United States. Critics like farmers, land developers, and construction companies have called the policy “extreme government overreach.” In March, both the House and Senate passed a disapproval resolution with bipartisan support that would have scrapped Biden’s Waters of the U.S. Rule. Two federal judges have issued preliminary injunctions against implementing the WOTUS rule in 26 states while lawsuits are heard regarding the validity of the regulation.

The Number of Dairy Herds Fell in 2022

A USDA report says roughly six percent of U.S. dairy farms quit milking cows in 2022, but that was a slower rate of decline than during the past five years. Twenty years ago, there were 70,375 dairy herds in the country. In 2022, there were 27,932 herds, down from 29,842 in 2021. Calendar-year 2022 saw an exit of 1,910 dairy herds across the nation, which was about six percent of the country’s dairy operations.  That compares to a loss of 1,794 herds nationwide, or 5.7 percent of the country’s total, in 2021. However, the decline was larger during the previous three years. Over the past two decades, the U.S. lost an average of 2,300 dairy herds per year. Meanwhile, dairy cow numbers dropped slightly. The average herd size is growing, and per-cow and total milk production have increased. The average dairy herd size reached a record high of 337 head in 2022.

NCBA Files Comments on USDA Traceability Rule

The National Cattlemen’s Beef Association filed comments on the USDA’s proposed traceability rule. The rule would emphasize the importance of electronic animal identification to protect the cattle industry from the threat of a foreign animal disease. USDA’s proposed rule would apply to cattle 18 months or older only when moving interstate. “Traceability is about risk protection and ensuring we have the tools to quickly identify and respond to an outbreak while strengthening consumer trust in our high-quality beef,” says NCBA President Todd Wilkinson. “Our comments emphasize protecting U.S. cattle herds from the threat of a foreign animal disease while also protecting producers’ private data, limiting the cost of tagging devices, and operating at the speed of commerce.”  Without a national traceability system in place, the impact of a foreign animal disease outbreak would be magnified. The system would also support cattle producers in quickly returning to normal operations after an outbreak.

Thursday Watch List

Markets

USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m., followed by U.S. existing home sales in March and an index of U.S. leading indicators at 10 a.m.

Weather

A system is moving through the middle of the country Thursday morning with a line of thunderstorms from Iowa to Oklahoma, more in the Great Lakes, and snow in the Northern Plains and Canadian Prairies. The system will continue to wind up over the middle of the country today, with a risk of severe storms from Illinois down through Texas. Winds across the Plains and Midwest will be breezy and more dust storms are possible for western Kansas. Temperatures are falling rapidly behind a cold front moving through.

NPPC Issues Q2 Economic Update

The National Pork Producers Council released its second quarter pork industry economic update that provides a look at the top pork industry issues, trends, and market conditions impacting farmers. The report shows pork production increased 2.3 percent through the first quarter, with the USDA now projecting a 1.4 percent annual increase in pork production this year. Retail, wholesale, and farm-level prices show a year-over-year decline. Pork and variety meat exports gained momentum in the first quarter of 2023. Pork producer returns for the remainder of this year will be influenced by various factors, including domestic and export pork demand and input prices. “The U.S. is a worldwide leader in pork production, which is a significant contributor to the U.S. economy,” says Duane Stateler, NPPC Vice President. “Pork producers will continue navigating the economic challenges to ensure we raise safe, wholesome, and affordable food for communities here and around the world.”

USDA Announces Grassland Conservation Reserve Program Signup

The USDA announced that agricultural producers and private landowners can begin signing up for the Grassland Conservation Reserve Program now through May 26. Among CRP enrollment opportunities, Grassland CRP is a unique working lands program, allowing producers and landowners to continue haying and grazing practices while conserving grasslands and promoting plant and animal biodiversity as well as healthier soil. “Grassland CRP clearly demonstrates that agricultural productivity and conservation priorities can not only coexist but also complement and enhance one another,” says Zach Ducheneaux, administrator of the Farm Service Agency. “The strength of the program lies in its many benefits.” More than 3.1 million acres were accepted through the 2022 Grassland CRP signup from agricultural producers and private landowners. That was the highest-ever level of signups for the program. The current total participation in Grassland CRP is 6.3 million acres. For information or to signup, go to your local USDA Service Center.

Wall Street Rules Don’t Belong on Family Farms

Wall Street rules intended for publicly-traded companies shouldn’t extend to family farms. That’s the message from the American Farm Bureau and six other agricultural groups to the Securities and Exchange Commission. The SEC proposed a rule to require public companies to report on Scope 3 emissions, which are the result of activities not owned or controlled by a publicly-traded company but contribute to its value chain. Public companies that produce goods from agricultural products would need to report emissions from the relevant agricultural operations. The farm groups’ concern is that the rule will burden family farmers and ranchers and drive further consolidation in agriculture, all for no real environmental benefit. “The tracking will be extremely expensive, invasive, and burdensome for farmers and ranchers, at the cost of improved production practices that will generate actual environmental gains,” the groups say in the letter to the SEC. “Family farms will get hit hardest.”

Scott Condemns SNAP Work Requirements

House Agriculture Committee Ranking Member David Scott (D-GA) released a statement responding to House Speaker Kevin McCarthy’s debt limit framework. If that framework gets passed as proposed, it will include what Scott calls additional “punitive” work requirements for SNAP participation. “Let me be perfectly clear,” Scott says. “Holding food assistance hostage for those who depend on it, including 15.3 million children, 5.8 million seniors, and 1.2 million veterans, in exchange for increasing the debt limit is a non-starter.” He also points out that the “ransom note” McCarthy unveiled in front of a crowd of Wall Street bankers is dead on arrival. “Republican attempts to punish low-income families to pay for tax cuts they pushed through under President Trump will not result in self-sufficiency,” Scott says. “It will only drastically increase hunger for our American people.” He says the additional work requirements on top of already-existing work rules won’t spur economic growth.

USDA Offers More Funding for Expanding High-Speed Internet in Rural Areas

The USDA announced the availability of $20 million to deliver broadband technical assistance resources for rural communities and to support the development and expansion of broadband co-ops. The agency is offering the funding under the new Broadband Technical Assistance Program. The program supports technical assistance projects such as feasibility studies, completing network designs, and developing broadband financial assistance applications. Applicants can choose from one of three funding pools. “USDA is committed to making sure that people, no matter where they live, have access to high-speed internet,” says USDA Under Secretary for Rural Development Xochitl (zo-CHEEL) Torres Small. “That’s how you grow the economy not just in rural communities but across the nation.” The undersecretary also says the agency is partnering with small towns, local utilities, cooperatives, and private companies to increase access to a critical service. “The service builds brighter futures by creating more opportunities across rural America,” she says.

Ag Retailers Association List Top Five Farm Bill Priorities

The Ag Retailers Association says it’s cautiously optimistic the Farm Bill gets written on time. However, the association is worried that debt limit discussions may interfere. It’s going to be tough this year with the farm bill coming up right as the debt ceiling discussion hits the deadline,” says Hunter Carpenter with the Ag Retailers Association. “I’m cautiously optimistic.” The group has five priorities they’re advocating for in the bill. They want the continuation of a strong farm safety net and crop insurance. They want to maintain the current acreage dedicated to conservation programs. Other priorities revolve around biologicals. The previous farm bill started to build a structure around defining plant biologicals. The new farm bill can go further in providing uniform definitions. They’d like to see the farm bill support research functions of USDA, including the National Agricultural Statistics Service. “We’re pushing hard to get it done this year,” he says.

Wednesday Watch List

Markets

The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m. CDT, including ethanol production. The Federal Reserve's Beige Book will follow at 1 p.m. Traders will continue to monitor the latest weather events around the world as the northern Hemisphere gradually shakes off a long winter season.

Weather

A multi-pronged system is moving into the Plains Wednesday and will be setting up conditions that favor increasing showers and thunderstorms across the middle of the country throughout the day, including some severe thunderstorms for the eastern Plains into Iowa. Across the north, it is cold enough for areas of snow in Montana, North Dakota and across the border into Saskatchewan and Manitoba, where snowfall is likely to be heavy. Winds continue to be breezy across the Plains, which is unfavorable for crops in drought, mainly wheat.

Farm Credit Reports on Ag Economy and Condition of Its System

The Farm Credit Administration recently received a quarterly update on economic issues affecting agriculture as well as an update on the performance of the Farm Credit System through 2022. Inflation continues to be a core economic issue despite recent declines. Inflation has been driven, in part, by a tight labor market and rising production costs and consumer demand. The report also says strong prices for many commodities have continued into 2023. Tight global grain stocks, declining cattle inventory, and disruptions to specialty crop production continued to support prices. Input costs will remain high this year and curb farm profitability. With the end of the three-year La Niña pattern, drought conditions have improved across many parts of the country. The update also says the System reported strong financial results in 2022, including strong loan growth and higher earnings. The System’s loan portfolio continued to perform well, and portfolio credit quality remained strong.  

Consider Corn Challenge Still Finding New Uses for Corn

The National Corn Growers Association is launching its fourth Consider Corn Challenge. The open-innovation contest invites participants to submit proposals for new uses of field corn as a primary feedstock for producing novel sustainable chemicals and products with quantifiable market demand. “Consumers have a genuine interest in biobased products, and corn is investing in solutions that meet that need,” says NCGA Market Development Action Team Chair Troy Schneider. “In order to continue drawing in game-changing participation, the prize pool has increased to $250,000.” If all 15 winners of the first three Consider Corn Challenges reach full commercialization with products in the marketplace, the potential for additional corn demand would be approximately 3.4 billion bushels. One to six winners will be selected for the fourth Consider Corn Challenge. The submission deadline is June 30 at 5 p.m. Central Time, and winners will be announced in October. To learn more, go to ncga.com/ConsiderCorn.

NFU Supports Torres Small for Deputy Ag Secretary

The National Farmers Union released a letter in support of the nomination and confirmation of Xochitl (Zo-CHEEL) Torres Small to serve as the Deputy Secretary of Agriculture at USDA. NFU President Rob Larew says current Under Secretary for Rural Development Torres Small has tirelessly served family farmers in New Mexico and the country. “She’s done amazing work for rural communities and supply chains that support our entire economy,” says Larew. “I’m proud to share our support knowing that Under Secretary Torres Small will make a positive impact as Deputy Secretary of the USDA.” NFU has a long history with Torres Small going back to her time as a member of Congress when she represented family farmers and ranchers in New Mexico. NFU urges the Senate Committee on Agriculture to advance Torres Small’s nomination to serve as Deputy Secretary of USDA and looks forward to working with her in the new role.

Taylor Leads USDA Trade Mission to the Netherlands

USDA’s Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor launched the first-ever regional agribusiness trade mission to the Netherlands in Amsterdam. The delegation includes representatives from 31 agribusiness and farm organizations and ten state departments of agriculture. The group aims to expand economic partnerships between the U.S. and the Netherlands and markets throughout Scandinavia. “As the gateway to Europe for U.S. exports, the Netherlands is an important trading partner,” Taylor says. “Company representatives from Belgium, Denmark, Finland, Germany, Iceland, Norway, and Sweden are joining us in Amsterdam.” She also says with combined total agricultural and related exports to these markets topping $4.5 billion in 2022, Taylor is confident the delegation will be successful in building new relationships that are critical to expanding opportunities for increased trade. USDA will help facilitate business-to-business meetings between small and medium-sized agribusinesses and regional buyers looking to import American farm and food products.

Optimism Despite Headwinds in the Ag Equipment Market

Equipment manufacturers are still recovering from pressures brought on by COVID-19, but they’re working toward a state of normalcy despite trials and tribulations. Kip Eideberg is the Senior Vice President of Government and Industry Relations for the Association of Equipment Manufacturers. Eideberg says supply chain pressures and a lack of workforce retention have been ongoing struggles for the industry, and individual sectors are facing their own problems as well. A recent AEM survey of its members detailed the strains and pressures that have built up in the global ag sector during the last few years. “Overall, far too many equipment manufacturers still feel the impact of COVID and supply chain disruptions in operations, lead times on components, labor force participation, and financial performance,” says Eideberg. In tracking sales and global data, the ag equipment market is in a good position right now, and there’s more optimism moving forward despite economic headwinds.

Illinois Farmland Prices Up 45 Percent in Two Years

Illinois farmland prices continued their upward curve in the last several years, and it applies to all classes of farmland throughout the state. That’s according to a report issued during the 2023 Illinois Farmland Values Conference sponsored by the Illinois Society of Professional Farm Managers and Rural Appraisers. Last year continued to see a sharp rise in land values. While certain parts of the state saw more strength than others, Illinois land values were up across the board. Class A land across Illinois rose 45 percent from 2021-2022. While premium acreage always carries the flag, the report says lesser quality acreage saw increases of over 25 percent and, in some instances, over 40 percent during the same period. The state’s professional farmland managers and appraisers said reduced transactions in 2020, historically-low interest rates, strong demand, increased commodity prices, and overall fear in other economic sectors all play a role in rising prices.

Tuesday Watch List

Markets

Overnight, China reported first quarter GDP was up 4.5% from a year ago, better than expected, reported RTTNews.com. China's unemployment rate was 5.3% in March, also better than expected. A report on U.S. housing starts in March will be out at 7:30 a.m. CDT Tuesday. In addition to watching the latest weather developments, traders may be leery of Russia's next move.

Weather

A storm system in the West will move into the Plains on Tuesday, increasing showers and a few thunderstorms. Bouts of snow will develop over the far Northern Plains and into the Canadian Prairies. Winds will also be a little breezy in the Plains, unfavorable for winter wheat.

Texas Barn Fire Kills 18,000 Dairy Cattle

A Texas dairy farm suffered an explosion and fire that possibly resulted in the largest single-incident livestock death toll in history. Agriculture Dot Com says the Southfork Dairy Farm in Dimmitt, Texas, reports approximately 18,000 dairy cattle died in the blaze. The Castro County Sheriff’s Office said that was about 90 percent of the farm’s total herd. Investigators are working to find out the cause of the devastating fire. “They’re trying to determine if it came from machinery known as a honey wagon that sucks out manure and water,” says Castro County Sheriff Sal Rivera. “It may have possibly ignited methane gas.” The farm employs 60 workers, and all were accounted for. One female was trapped inside, and first responders were able to rescue her from the structure and airlifted her to a nearby hospital, where she’s critical but stable. Southfork Dairy Farm had been running for less than a year.

Brazil’s Record Soybean Harvest Continuing

Brazil’s farmers will produce 153.6 million metric tons of soybeans this year. CONAB (KOH-nab), a private company that works under Brazil’s Ministry of Agriculture, says that’s up 1.5 percent from their outlook last month. The USDA had projected Brazil’s soybean harvest to reach 154 million metric tons, one million tons higher than the previous forecast. USDA data showed that Brazil produced 130.5 million metric tons a year ago. Global soybean stocks were forecast by the agency at 100.3 million metric tons, up from the prior forecast of 100 million. If reached, that would be up from 99.7 million tons a year earlier. Brazil’s CONAB also expects the country’s corn production to reach a record 124.9 million metric tons, slightly higher than last month’s forecast. The forecast for Argentina’s soybean harvest continues to drop, coming in at 27 million metric tons. That’s six million tons lower than the March USDA forecast.

Farmers, Conservationists Ask Court to Strike Down Dicamba

Public-interest groups representing farmers and conservationists filed arguments in court seeking to have the Environmental Protection Agency’s approval of dicamba struck down. The arguments are a continuation of an earlier lawsuit that resulted in a 2020 court ruling overturning prior approvals of dicamba as unlawful. The groups say the new litigation was prompted by the EPA’s decision to ignore the court’s ruling and move forward with reapproving the pesticide. “We now have years of incontrovertible evidence revealing that these dicamba products cannot be used without causing grave harm to other farmers and the environment,” says George Kimbrell, legal director of the Center for Food Safety and counsel in the case. The petitioners say dicamba drift and runoff damage natural areas and wildlife refuges, injuring wild flowering plants, including some federally-protected species on which bees and other insects rely. Plaintiff groups include the National Family Farm Coalition, Pesticide Action Network, and others.

Vilsack Urged to Deny Petitions on Make Allowance Hearing

The American Dairy Coalition sent a letter to Ag Secretary Tom Vilsack asking him to deny two recent petitions for hearings on the Federal Milk Marketing Order. The petitions from processor groups ask USDA to increase payments from farmers to processors to offset higher input costs. The coalition says holding a federal milk pricing hearing on these “make-allowances” without looking into additional concerns facing dairy farmers is misaligned, and therefore ADC can’t support it. “As a grassroots dairy farmer organization, ADC believes a comprehensive FMMO hearing is needed,” says ADC CEO Laurie Fischer. “We do not support ‘make allowance’ updates based on processors having the ability to voluntarily participate in the cost surveys, which undoubtedly would exclude essential relevant data.” ADC also says farmers need transparency in order to understand how their net payment is calculated, and these make allowances are not line items, but they’re embedded in pricing formulas.

Ford Phasing Out AM Radios Globally

Ford Canada confirms that it’s removing AM radios from all vehicles globally. Ford’s Canadian division says Canada will no longer have access to the AM band in upcoming vehicles. Radio Ink Dot Com says it’s the first confirmation that removing AM from dashboards won’t be isolated to the U.S. A Ford Canada spokesperson says that to listen to AM, all drivers have to do is link their phones to the vehicles entertainment system and stream the stations they’re looking for. Canada has more than 180 AM radio stations. Many of those stations broadcast news and information needed in remote areas that have less than ideal data coverage, making streaming difficult, if not impossible. The Canadian Association of Broadcasters says this marks another profound challenge to AM radio. “It’s unfortunate that the assumption is made that internet streaming of stations will be a suitable substitute in remote Canadian areas,” the group says.  

U.S. Wheat Planted Area Projected at Seven-Year High

The National Agricultural Statistics Service recently estimated the total U.S. 2023-2024 wheat planted area will be 49.9 million acres. That’s up nine percent from the previous year and would be the highest total since 2016-2017. The total winter wheat area is projected up 13 percent as high prices and strong profitability provides major incentives to plant. Hard Red Winter Wheat is projected up 13 percent to 26 million acres, even higher than the January 12 forecast. HRW production regions continue to be impacted by drought, which is likely to affect harvested area and yield. Soft Red Winter Wheat plantings are forecast up 19 percent from the previous year to 7.8 million acres, slightly below the January forecast. Hard Red Spring area is projected down three percent to ten million acres. But the area planted for this class will depend on planting conditions. Durum is projected up nine percent to 1.8 million acres.

Top 5 Things to Watch - Field Progress, Frost Watch and Cattle on Feed

OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 16. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com.

1. Frosty week: Weather models took a turn to the colder side as the weekend approached. DTN Ag Meteorologist John Baranick is watching to see if the trend continues through the week. This could bring frost to hard red winter areas, but unlikely be cold enough or long enough to cause much further damage. And, while planters have begun to move, it's also unlikely that there are too many emerged plants in the path of any significant frosts. Early planted gardens might benefit from some cover, however, on species prone to frost damage. 

2. Fertilizer trending lower: Our DTN Staff Reporter Russ Quinn, who keeps a close eye on the fertilizer beat, has been documenting the downtrend in fertilizer prices -- and has noted anhydrous prices getting close to that $1,000 level. He'll report where prices landed the previous week. 

3. Dairy disaster: We've been reporting on the terrible fire and cattle deaths at the dairy in Dimmit, Texas. Progressive Farmer Senior Editor Victoria Myers will continue following the saga to see if there are lessons to be learned for other large animal units. 

4. Market news on our radar: DTN analysts will watch several market-moving actions through the week, especially the ongoing saga of the Black Sea grain deal. We'll have the USDA weekly export inspections at 10 a.m. CDT Monday, with soybean crush numbers from the National Oilseeds Processors Association later Monday morning. Also on Monday, at 3 p.m. CDT, USDA's Crop Progress and Livestock, Dairy and Poultry reports will be out. It will be interesting to see how planting progressed with the warmer weather the week of April 9.

5. Latest cattle call: Friday will see the USDA Cattle on Feed report, due out around 3 p.m. CDT. Watch for preview thoughts ahead of that, and DTN Livestock Analyst ShayLe Stewart's thoughts on the report soon after its release.

Monday Watch List

Markets

Back from the weekend, traders will get acquainted with the latest weather forecasts and any news, especially regarding Russian comments about the Black Sea grain deal. USDA's weekly export inspections will be out at 10 a.m. CDT Monday, followed by a report on members' soybean crush from the National Oilseeds Processors Association, later Monday morning. At 3 p.m., USDA's Crop Progress and Livestock, Dairy and Poultry reports will be out.

Weather

A storm system continues to bring snow to the Great Lakes area Monday, including heavy snow for parts of Wisconsin. This system will be winding down tonight but there is another one entering the Pacific Northwest which will send several pieces of energy through the country for the rest of the week.

Colorado Passes First Right to Repair Legislation

Colorado farmers will get the first opportunity to fix their own equipment next year, thanks to newly-approved right-to-repair legislation. Manufacturers will now be required to provide their customers with diagnostic software manuals and other aids. Colorado is the first U.S. state to approve this kind of law. The “Consumer Right to Repair Agriculture Equipment Act” passed the Colorado Senate 46-14 this week, while the state House passed the bill in February. The bill had bipartisan support as farmers’ profits were squeezed by expensive repairs and rapidly rising input prices. The legislation mandates that farm machinery manufacturers like Deere and CNH Industrial furnish their customers with diagnostic tools, software documents, and repair manuals beginning on January 1, 2024. Manufacturers must also provide those resources to independent technicians. A Deere spokesman told Reuters that the company supports farmers’ right to repair but believes this bill wasn’t necessary and will carry unintended consequences.

Ag Groups Respond Positively to Court Halting WOTUS Rule

A court ruling out of North Dakota halted implementation of the 2023 Waters of the United States Rule in 24 states, and ag groups responded positively. American Farm Bureau President Zippy Duvall says his group proudly stood with the 24 states involved and more than a dozen organizations in this challenge. “Two District Courts have acknowledged the new rule oversteps EPA’s authority under the Clean Water Act,” Duvall says. “With the rule on hold in more than half the country, EPA and the U.S. Army Corps should do the right thing, listen to our legitimate concerns, and rewrite the rule.” The National Cattlemen’s Beef Association also applauded the court’s decision. “Cattle producers in a total of 26 states now have some additional certainty while this rule is being litigated, and we’re optimistic the Supreme Court will provide nationwide clarity on the federal government’s water jurisdiction,” says NCBA President Todd Wilkinson.  

Sorghum Foundation Opens 2023-2024 Scholarship Applications

The National Sorghum Foundation opened three scholarship applications for college students studying agriculture in the upcoming 2023-2024 academic year. The application deadline is June 1, 2023. In the 22 years that the National Sorghum Foundation has been in operation, more than 50 scholarships have been awarded to deserving agricultural students who excel in academics, leadership, and service. “The Foundation is excited to announce that three scholarships will be offered during the spring 2023 semester,” says National Sorghum Foundation Chair Jeff Dahlberg. “These scholarships are named in memory of three giants of the sorghum industry who served for many decades.” Each scholarship includes an award of $1,500 to be applied to one semester of tuition expenses, and one scholarship also includes an all-expense paid trip to Washington, D.C., with the National Sorghum Producers. More information about each scholarship’s criteria and application forms for each scholarship can be found online at SorghumGrowers.com/foundation-scholarships.

USDA: Most Improved Award Winner in Best Place to Work Rankings

The USDA announced that it’s received recognition for being the “Most Improved” for large federal agencies in the Partnership for Public Service’s 2022 Best Places to Work Rankings. The department now ranks 12th among very large agencies in the Best Places to Work Rankings, up from a 16th place ranking in 2020. “At USDA, we are committed to reaching new heights by cultivating a workplace environment that is collaborative, service-oriented, mission-centered, healthy, and inclusive,” says Ag Secretary Tom Vilsack. “I’m pleased to see these results as we strive to live up to the moniker of ‘the People’s Department,’ and we will continue to move forward with a strong commitment to making improvements on behalf of all employees, attracting talent that represents the diversity of America, and putting people at the center of everything we do.” He says they’re working together to create an engaging environment and cultivate an exceptional workforce.

U.S. Potato Exports Hi $2.1 Billion in 2022

Potato exports reached a record $2.1 billion in sales in 2022. Compared to 2021, volume sales dropped 4.2 percent but were higher than in 2018 and 2020. The value of U.S. potato exports rose across all potato types, resulting in an 11 percent increase over the previous year. Global price hikes and inflation can be attributed to this growth. Demand for U.S. potatoes remained strong in 2022, showing that the slight drop in export volume resulted from tight supply. Over the year, the top export markets for U.S. potatoes were Mexico, Canada, Japan, South Korea, and the Philippines, in descending order. The value of U.S. frozen potato exports rose almost 14 percent, reaching $1.34 billion. However, volume dropped 2.5 percent compared to 2021. The top destinations for U.S. frozen potatoes were Japan, Mexico, South Korea, and the Philippines. Potatoes USA says despite inflation-driven price increases of U.S. products, global potato demand remained strong.

Iowa House Passes Bill Restricting Drone Surveillance of Livestock Facilities

The Iowa House of Representatives passed a bill that restricts drone surveillance of livestock facilities without permission from the property owner.  If House File 572 becomes law, remotely piloted aircraft couldn’t fly within 400 feet of homesteads or other areas where animals are kept. People caught in violation would face a simple misdemeanor for intruding on farm airspace. If the device happens to record images, sounds, or other data, that increases the penalty to a serious misdemeanor charge. Agriculture Dot Com says the bill comes in response to animal welfare organizations documenting the conditions and treatment of animals at Iowa’s livestock and dog-breeding facilities. Iowa’s legislators have repeatedly passed “ag-gag” laws to attempt to criminally penalize activists who record and publish images and videos of livestock facilities. Judges have ruled in the past that those laws are unconstitutional. Rep Derek Wulf says the bill “provides privacy rights for our farmers and ranchers.”

Friday Watch List

Markets

The U.S. Commerce Department will report on March retail sales at 7:30 a.m. CDT Friday, followed by the Fed's report on March industrial production at 8:15 and a consumer sentiment index for April at 9 a.m. Traders will keep an eye on the latest weather forecasts and watch for a possible export sale announcement at 8 a.m.

Weather

A disturbance continues to move northeast out of the Gulf of Mexico, spreading showers through the Southeast on Friday. Behind it, another system is leaving the Rockies with increasing showers across the Plains and Upper Midwest. It remains very warm ahead of this system, with another day or two of good weather for fieldwork for some areas before a more active pattern starts back up.

EPA’s Tailpipe Standards Overlook Ethanol’s Low-Carbon Benefits

The Environmental Protection Agency released its proposed tailpipe emissions standards for 2027 and beyond. The Renewable Fuels Association says the agency blatantly tipped the scales in favor of electric battery vehicles. The EPA also overlooked a significant near-term opportunity to achieve significant vehicle efficiency improvements and carbon emissions reductions through increased use of high-octane, low-carbon ethanol fuel blends. “We strongly disagree with the policy approaches that arbitrarily pick technology winners and losers with no clear scientific basis,” says RFA President and CEO Geoff Cooper. RFA points out that a flex fuel vehicle running on E85 made from certain forms of ethanol would provide similar or even lower carbon emissions at a far lower cost. “Today’s EPA proposal would effectively force automakers to produce more electric battery vehicles and strongly discourage them from pursuing other technologies that could achieve the same or better environmental performance at a lower cost for families,” Cooper says.  

Court Grants Request to Block Biden Administration’s WOTUS Rule in 24 States

The U.S. District Court of North Dakota issued a preliminary injunction against the Biden administration from implementing its final rule redefining the Waters of the United States in 24 states. The court’s move comes in response to a motion filed by Montana Attorney General Austin Knudsen. According to the Montana Farm Bureau Federation, estimates from the similar Obama-era rule would have placed nearly 90 percent of Montana’s land under the jurisdiction of the Environmental Protection Agency. “This injunction resulting from our lawsuit is welcome relief to farmers and ranchers and workers in mining, energy, and other industries who would be harmed if this unconstitutional rule is allowed to take effect,” Attorney General Knudsen says. “This is just the first step to stopping the overreaching WOTUS rule.” Knudsen also says he will continue to fight the Biden administration and prevent them from claiming federal jurisdiction over massive swaths of land and water.

China Is Now the World’s Largest Wheat Importer

The USDA’s Foreign Agricultural Service issued its “Grain: World Markets and Trade Report” and says China is now the biggest wheat importer in the world. The report says China’s wheat imports are forecast up to 12 million tons this year, the country’s highest level of imports since 1995-1996, when imports totaled 12.5 million tons. China’s domestic grain prices have remained high given the country’s minimum support price policy and reduced auction activity amidst uncertainty surrounding the government’s COVID policies. Chinese wheat prices have lingered around $450 per ton during the past year, while China’s corn prices averaged $400 per ton. FAS says competitive pricing has prompted China to import large volumes of both milling and feed-quality wheat. Australian wheat is especially competitive following three consecutive years of record crops. China continues to aggressively import Australian wheat supplies, with July through February wheat imports up 66 percent compared to the previous year.

Harvester Sales Continue Recent Gains

Combine harvester sales in the U.S. and Canada continued growing while tractor unit sales stayed close to their five-year average. That’s according to new data from the Association of Equipment Manufacturers. Overall, U.S. ag tractor sales continued sliding in March despite gains in the four-wheel drive segments, which were up 106 percent. U.S. self-propelled combine sales grew 45 percent in March, keeping the year-to-date gains above 100 percent. All other tractor segments fell, with the sub-40 horsepower segment leading the losses in March by dropping 14.2 percent. Total U.S. farm tractor sales fell 12.1 percent compared to March 2022 and are down 15.1 percent this year. In Canada, combine harvester sales continue growing, up 190 percent for the month and almost 200 percent year to date. Total Canadian tractor sales finished March down 24 percent. “The March tractor and combine report is a mixed bag,” says Curt Blades of AEM.

NPB Hires First Chief Sustainability Officer

The National Pork Board has hired James “Jamie” Burr as its first Chief Sustainability Officer. Burr brings over 20 years of experience to help the pork industry meet sustainability goals in his new role. “Jamie’s input has been invaluable to several key producer-funded initiatives for over a decade,” says Bill Even, National Pork Board CEO. “He’s served on and chaired several Pork Board environmental and sustainability committees and task forces, so his leadership has already helped shape the industry’s sustainability vision.” Even also says establishing a CSO position and adding Burr to the team continues to demonstrate the industry’s strong commitment to advancing pork sustainability. Burr comes to the NPB from Tyson Foods, where he recently served as director of environmental compliance and was the environmental lead for all of Tyson’s live-animal production businesses. Burr earned a Master’s Degree in Soil Science and a Bachelor of Science in Agronomy from Missouri State University.  

Food Help on the Way to Arkansas After Tornadoes, Severe Storms

Approximately 7,000 families in Cross and Pulaski Counties in Arkansas were hit hard by recent tornadoes and severe storms. They’ll soon get food packages containing nutritious, high-quality foods that are 100 percent grown and produced on farms in the U.S. The packages are known as USDA Foods. “In challenging times like this, USDA plays a critical role in supporting Americans, and none are more challenging than climate-related disasters that threaten lives, destroy communities, and disrupt food systems,” says Ag Secretary Tom Vilsack. “Until their recovery is complete, we will continue to coordinate with our state, local, and federal partners to help get food and nutrition assistance to them when they need it most.” The Disaster Household Distribution program was approved to start on April 7. Arkansas officials will work directly with partners and local food banks to issue food boxes to participants located in affected areas. More information is available at fns.usda.gov.

Thursday Watch List

Markets

USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, the producer price index for March and an update of the U.S. Drought Monitor. The U.S. Energy Department reports on natural gas in storage at 9:30 a.m. Traders will keep track of the latest weather developments, especially in the U.S. and Brazil.

Weather

A storm system moving north from the Gulf of Mexico is spreading showers into the Southeast on Thursday. Another system moving through the West will see showers increasing across the Plains as well. Some heavy snow will move through Montana while the snowpack farther east will continue melting. Warm and breezy conditions continue ahead of the storm system with another good day for fieldwork occurring for most areas.

WOTUS Stopped in 26 States After Ruling - Federal Judge in North Dakota Issues Injunction in 24 States

OMAHA (DTN) -- The waters of the U.S. rule is now on hold in 26 states after a federal judge in North Dakota issued a preliminary injunction on Wednesday in the 24 states that filed a lawsuit against the Biden administration.

The U.S. District Court for the District of North Dakota's ruling now prevents enforcement of the WOTUS rule in Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming.

Texas and Idaho previously received an injunction from the U.S. District Court for the Southern District of Texas.

The states along with several agriculture and other industry groups have argued in the lawsuit the latest WOTUS rule is a federal overreach and would exact serious costs to states and others to comply.

In his opinion and order, Judge Daniel L. Hovland said he agreed.

"The numerous declarations filed in this case by state officials outline in detail the specific costs of state compliance with the EPA's new 2023 rule, as well as the significant infringement on state sovereignty that confers standing on the named plaintiffs," Hovland said in the ruling.

"The 2023 rule does cause injury to states because they are the direct object of its requirements. And the states are also landowners with direct obligations under the Clean Water Act. There is not a mere possibility the new regulations will impact the states -- it is a given. The irreparable harm to the states that occurs with the implementation of the new 2023 rule is clear and undisputed."

Ag groups led by the American Farm Bureau Federation had asked the court to issue a national injunction against the rule, but the judge stopped short of that.

The track the legal challenges to the new rule are taking is nearly identical to what occurred with the 2015 rule.

At one point during the legal battles on the Obama-era rule, there was a near 50-50 split on where the rule was being enforced.

AG REACTION

The National Cattlemen's Beef Association, one of the ag groups intervening in the lawsuit in North Dakota, said the ruling was important.

"Once again, the courts have affirmed that the Biden administration's WOTUS rule is overreaching and harmful to America's beef farmers and ranchers," NCBA President Todd Wilkinson said in a statement.

"Cattle producers in 26 states now have some additional certainty while this rule is being litigated, and we are optimistic that the Supreme Court will provide nationwide clarity on the federal government's proper jurisdiction over water."

Sometime this spring it is expected the Supreme Court will issue a ruling in Sackett v EPA. A ruling could determine how EPA and the U.S. Army Corps of Engineers make Clean Water Act determinations -- particularly when it comes to wetlands.

Agriculture and other groups pressed the agencies to hold off issuing the new rule until after the Supreme Court delivers an opinion. Hovland criticized EPA for moving forward with a rule while the Supreme Court ruling was pending.

"There is little public interest or any efficiency gained by implementing a new rule which codifies the 'significant nexus' test before the United States Supreme Court issues a decision in Sackett," Hovland said in the opinion.

Hovland added, "Common sense dictates that it only makes sense to wait. There is no urgency to implement the 2023 rule. The Supreme Court's decision in Sackett will be issued by June 2023 and will likely address many of the unresolved legal issues and jurisdictional determinations at the heart of this lawsuit."

Environmental groups and the federal agencies have tried to make the case that an injunction will lead to further environmental damage to water resources.

The judge disagreed.

"There is no legitimate concern that natural resources are threatened because all local lands and waters remain under the state's traditional protection," Hovland said in the opinion.

"A delay allows for a full and final resolution on the merits and is in the best interests of the public. The court finds that a far broader segment of the public would benefit from a preliminary injunction because it would ensure that federal agencies do not extend their power beyond the express delegation from Congress."