NCBA Files Motion to Strike Down WOTUS

The National Cattlemen’s Beef Association filed a motion in the U.S. District Court of Southern Texas asking it to strike down the Biden administration’s Waters of the U.S. Rule. The motion comes in light of the Supreme Court’s decision in Sackett v. EPA. “A full rewrite of the Biden administration’s WOTUS definition is the only path to comply with the Sackett decision,” says NCBA Chief Counsel Mary-Thomas Hart. “NCBA is seeking summary judgment in our lawsuit against the Biden WOTUS rule and urging the Southern District of Texas to strike the rule from the books.” Separate from the Sackett case, NCBA led a coalition in filing suit against the Biden rule to keep it from taking effect. NCBA helped secure injunctions in 27 states to temporarily halt the rule. “NCBA has been fighting the overreaching WOTUS rules for years, and this is the latest example of our fight,” says Hart.  

USDA Investments Promote Competition and Strengthen the Supply Chain

The USDA is making investments to increase independent meat and poultry processing capacity, expand market opportunities for farmers, and support a growing workforce in rural areas. “While American farmers and ranchers have been responding to the demand to produce more, their communities have struggled to see their share of benefits,” says Ag Secretary Tom Vilsack. “We’re committed to championing meat and poultry processors, increasing competition, and lowering the costs for working families.” USDA is providing 15 awards totaling $115 million in 17 states. The agency is also providing another five awards totaling $38 million through the Meat and Poultry Processing Expansion Program. USDA will also provide ten awards totaling $77 million under the Meat and Poultry Intermediary Lending Program. The announcement supports projects from Colorado, Connecticut, Maryland, Montana, and several other states. The investments will build a pipeline of well-trained meat processing workers and support safe workspaces with fair wages.

Colombia Lifts Ban on U.S. Poultry Exports

Quick action resolved an issue that temporarily stopped American poultry product exports to Colombia, the tenth-largest market for those products. Colombia’s Ag Ministry instructed all Colombian ports to deny import permits to any poultry products beginning June 1 due to concerns about Highly Pathogenic Avian Influenza. Approximately $1.1 million worth of U.S. exports were impacted between June 3 and June 8. The Foreign Ag Service, Animal and Plant Health Inspection Service, and the U.S. Trade Representative worked together to leverage the free trade agreement to pressure Colombian officials to lift the ban. The cooperative effort brought a reversal to fruition on June 8. The previous denial of import licenses, stuck shipments of U.S. poultry, and the uncertainty of market access directly impacted consumers and American businesses. Tyson Foods, PriceSmart, and McDonald’s were some of the main companies hit by the ban. The market accounted for over $100 million in 2022.

Drought Tightens Grip on Midwest, Eastern Great Plains

The Midwest and east-central Great Plains saw conditions worsen with widespread crop stress and lower stream flows in this week’s Drought Monitor. Heavy rains in parts of Ohio and Kentucky led to some improvements in the short-term drought. However, much of the Midwest saw conditions stay the same or get worse, especially in central Indiana, Illinois, Missouri, southwest Wisconsin, southeast Minnesota, and southeast Iowa. Almost completely-dry weather in Missouri and southern Illinois created potential problems for corn and soybean production. In southeast Iowa, producers reported rolling corn leaves and stunted soybeans. The weather was varied in the High Plains. Much of the northern parts, except for eastern Nebraska and eastern Kansas, saw widespread precipitation, some of it heavy. Conditions got drier in southeast Nebraska and northeast Kansas. Much warmer than normal temperatures covered the western half of the South. Most of the West was near to below-normal in temps during the week.

Former NCGA President to Lead MAIZALL

John Linder, a former president of the National Corn Growers Association, was elected to serve as the president of MAIZALL (Mayz-all). The Ohio corn grower will lead the international farm organization that focuses on eliminating regulatory obstacles to innovation in agriculture. The group contains members from the U.S., Brazil, and Argentina. His one-year term starts on July 3, and NCGA’s current leadership expressed enthusiasm over the news. “John is a dedicated leader, and he will no doubt do an outstanding job leading MAIZALL,” says current NCGA President Tom Haag (HAYG). MAIZALL engages private sector stakeholders, national government officials, and leaders from international organizations like the World Trade Organization and the Food and Agriculture Organization. The goal is to work towards alignment on regulatory barriers to trade. “Trade is vital to American farmers,” Linder says. “As MAIZALL president, I will encourage foreign governments and international organizations to embrace science-based regulatory decision-making.”

NMPF Issues Letter on Lab-Produced “Milk”

The National Milk Producers Federation sent a letter to the Food and Drug Administration regarding lab-produced fake “milk.” A company called Bored Cow calls its product milk, which the U.S. dairy industry says is completely false. “They take water and add what we believe to be one unidentified, lab-engineered ‘whey protein’ along with a highly processed concoction of food additives, preservatives, oil, sugar, and several added vitamins, and claims it is ‘animal-free dairy milk,” says NMPF President and CEO Jim Mulhern. “It’s baseless, absurd, and preposterous to call the resulting product ‘milk.’” The federation has repeatedly called on FDA to enforce its identity standards for milk as plant-based fakes have proliferated. It’s now warning the agency that lab-based milk imposters will be next without agency action. Lab-based milk imitators are following the plant-based playbook and plastering “milk” and other standardized dairy terms on products that have nothing in common with true dairy.

Friday Watch List

Markets

Reports on U.S. personal incomes and consumer spending are due out at 7:30 a.m. CDT Friday, along with the PCE index for May, the Federal Reserve's favorite inflation indicator. The University of Michigan's index of consumer sentiment is set for 9 a.m., followed by USDA's Acreage and Grain Stocks reports at 11 a.m.

Weather

A hot ridge continues over the South-Central U.S. on Friday, and areas of thunderstorms will pass along the northern rim from Kansas and Nebraska through the Ohio Valley again throughout the day. While another derecho, like one that occurred on Thursday, is not anticipated early this morning, some areas of severe weather are likely to occur.

Ag Groups Motion Texas Court to Vacate Biden Waters of US Rule as EPA Starts Rewrite

LINCOLN, Neb. (DTN) -- Agriculture groups asked a federal court in Texas to strike down the Biden administration's waters of the U.S. rule (WOTUS) even as the EPA announced this week it would rewrite and issue a new proposed rule by Sept. 1.

Ag groups led by the National Cattlemen's Beef Association, American Farm Bureau Federation and others filed a motion for summary judgement in the U.S. District Court for the District of Southern Texas in Galveston on Wednesday, telling the court the recent ruling by the Supreme Court in Sackett v EPA establishes the Biden rule as "unlawful."

The Texas court previously issued a preliminary injunction against the rule for the states of Texas and Idaho.

The ag groups asked the court to require the EPA and the U.S. Army Corps of Engineers to apply the Supreme Court's decision as the "operative framework" for making jurisdictional determinations and approving permit applications, until the administration promulgates a new rule.

The Supreme Court declared unlawful the agencies' use of the significant-nexus test when making Clean Water Act determinations.

The EPA motioned for a stay in a lawsuit filed in a federal court in North Dakota this week, telling the court the agency will be issuing a new proposed rule by or before Sept. 1.

"Business plaintiffs' members and their clients who operate in every state remain subject to that rule in the 23 states in which it is not enjoined," the ag groups said in their Texas motion.

"Worse, although Sackett determines the agencies' jurisdiction in the vast majority of circumstances, the Corps has announced that it will not issue AJDs (jurisdictional determinations) anywhere until the agencies promulgate a new rule, putting business plaintiffs' members and their clients at continuing risk of criminal and civil penalties for ordinary use of their property. Only vacatur of the rule, agency adherence to Sackett to process AJDs and permits and prompt promulgation of a new rule can end this arbitrary roadblock to the lawful use of the land."

NCBA's Chief Counsel Mary-Thomas Hart said in a press release, "A full rewrite of the Biden administration's WOTUS definition is the only path to comply with the Sackett decision."

In its motion for summary judgement the ag groups said the court should "immediately supply clear directions to Corps offices and other stakeholders that ephemeral and isolated waters are no longer jurisdictional" and that jurisdictional determinations should reflect that.

"Delay in providing clear direction perpetuates the conduct for which the agencies were admonished in Sackett," ag groups said.

"There is no warrant for the agencies, after nearly two decades during which they unlawfully expanded their authority by imposing a significant nexus test on land users, to continue to hold the threat of criminal and civil sanctions over businesses for ordinary land uses now that the Supreme Court has established clear jurisdictional rules."

Reintroduced Legislation Would Improve Freight Rail Service

Lawmakers in the U.S. Senate Thursday reduced the Reliable Rail Service Act. The legislation seeks to help address the unreliable service and high costs of rail shipping for American businesses. Supported by members of the agriculture industry, labor organizations, energy producers, and manufacturers, the bill ensures the largest freight railroads provide American businesses reliable services at reasonable rates. Rail shippers, including farmers, continue to face poor service, significant service disruptions, and sky-high prices that are impacting communities, and consumers, all while the nation's largest railroads' profits are at record highs. Senators Roger Marshall, a Kansas Republican, and Tammy Baldwin, a Wisconsin Democrat, reintroduced the legislation. Marshall says, "Service failures hurt our shippers who use the rail to deliver their products to key export facilities." The bill establishes specific criteria for the Surface Transportation Board to consider when evaluating whether carriers are meeting their common carrier obligation to give shippers much-needed certainty that is currently lacking.

Lawmakers Seek PFAS Farm Bill Funding

A group of lawmakers is asking for Farm Bill funding to help rural communities with PFAS contamination. In a letter to leadership of the House and Senate Agriculture Committees, the lawmakers say, "It is imperative that we take decisive action to provide assistance and relief to those affected by PFAS.” The use of PFAS chemicals in various industrial and commercial applications has led to widespread contamination, posing a significant threat to our environment, public health, and agricultural systems. Farmers and rural communities, in particular, bear the brunt of PFAS contamination, according to the letter, as it affects their drinking water, soil quality, and livestock health. The lawmakers urge Farm Bill writers to include the Healthy H2O Act within the legislation. The bill aims to address PFAS contamination in water supplies by funding water testing, treatment, and remediation. The effort was led by Senator Democrat Tammy Baldwin of Wisconsin and Susan Collins, a Republican from Maine.

USDA Solicits Nominations to the Tribal Advisory Committee

The Department of Agriculture Wednesday announced it will establish a Tribal Advisory Committee and is requesting nominations for membership. The notice is among USDA’s efforts to remove barriers to service for tribal governments, citizens, and tribal nations. Agriculture Secretary Tom Vilsack called the committee “an important step towards ensuring tribal perspectives are well represented at USDA and positioned to inform how the Department meets its trust responsibility to tribes across the nation." Authorized in the 2018 Farm Bill, the Tribal Advisory Committee provides advice and guidance to the Secretary of Agriculture on matters relating to tribal and Indian affairs. As a federal advisory committee, the Tribal Advisory Committee will provide invaluable recommendations on USDA programs and policies, including through an annual report to Congress. The nomination period for membership to serve on this advisory committee will be open through August 14, 2023. Specific information and nomination instructions are available in the Federal Register.

Genetically Modified Seed Prices Rising Faster Than Non-GM

Prices farmers paid for crop seed increased significantly faster than the prices farmers received for crop commodities between 1990 and 2020. USDA’s Economic Research Service reports that during that period, the average price farmers paid for all seed rose by 270 percent, while the crop commodity price index rose 56 percent. For crops planted predominantly with genetically modified seed – corn, soybeans, and cotton – seed prices rose by an average of 463 percent between 1990 and 2020. During this period, GM seed prices peaked in 2014 at 639 percent above 1990 price levels. Despite their higher cost, GM crop varieties have provided significant productivity gains for farmers, partly through higher yield, but also by lowering farm production costs. For example, GM traits for insect resistance reduce the need for insecticide applications. Similarly, GM traits for herbicide tolerance provide a substitute for mechanical tillage, thus reducing labor, machinery, and fuel previously used for controlling weeds.

Survey Highlights Barriers to Effective Herbicide-Resistant Weeds Management

A recent survey of certified crop advisors in all 50 U.S. states shows they are concerned about the escalation of herbicide resistance and the impediments to effective weed management. The Weed Science Society of America survey found that four out of ten crop advisers were concerned about the challenges in managing herbicide-resistant weeds over the next five years – a significantly higher percentage than those concerned about resistance to insecticides or fungicides. Concern was greatest among those working with large-scale growers in the West or the Great Plains states and those supporting corn, rice or beet production. Crop advisors listed economics as the number one barrier to effective management of herbicide-resistant weeds, followed by management complexity, supply constraints, limited available technology, time constraints and the misguided perception that a "silver bullet" will emerge to support the management-resistant weeds. In addition, 82 percent of those surveyed agree or strongly agree that growers need to evolve how they think about resistance management.

NACD Applauds USDA Bolstering Working Lands for Wildlife Program

The National Association of Conservation Districts welcomed this week’s expansion of USDA’s Working Lands for Wildlife program. The expansion includes close alignment of the Natural Resources Conservation Service and Farm Service Agency, centered around WLFW Frameworks for Conservation Action. The frameworks are biome-level conservation strategies rooted in the latest science and best practices. Their research and conservation tools are used to align stakeholders and prioritize conservation actions to achieve landscape scale objectives and benefit both people and wildlife. NACD President Kim LaFleur says, “This strategy will provide producers and land stewards in critical biomes across the country the opportunity to voluntarily implement conservation that enhances wildlife habitats. Since 2010, more than 8,400 producers in 48 states have teamed up under WLFW to conserve and enhance nearly 12 million acres of working agricultural lands. Conservation districts, land operators, and partners can learn more about participating in the WLFW program by visiting the program’s webpage and talking with their local NRCS staff.

Thursday Watch List

Markets

USDA's weekly export sales report is set for 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, first quarter U.S. GDP and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas supplies follows at 9:30 a.m. and traders will continue to pay close attention to the latest weather forecasts.

Weather

Disturbances moving through the Corn Belt will bring rounds of showers and thunderstorms on Thursday, especially from Nebraska to Indiana. Some of these storms may become severe with wind and hail the most likely threats and centered on Illinois, where the rain would be most welcome. South of this zone of precipitation, heat continues to build with triple digits extending up into Missouri and perhaps southern Illinois.

Cost of Summer Cookout Down Slightly From 10-Year High

Celebrating the 4th of July with a cookout will cost significantly more than two years ago, although prices have fallen slightly from record highs in 2022. Families will pay $67.73 to host an Independence Day cookout with ten family members or friends, based on the 2023 American Farm Bureau Federation marketbasket survey. The $67.73 grocery bill is down three percent from 2022, but still approximately 14 percent higher than prices were just two years ago. Last year set a record high since AFBF began the survey in 2013, and 2023 comes in as the second-highest cost. The cookout favorites include cheeseburgers, chicken breasts, pork chops, homemade potato salad, strawberries and ice cream, among other products. The marketbasket survey shows a year-to-year increase in the cost of hamburger buns, beef and potato salad, while there are drops in the cost of chicken breasts, lemonade and cookies. Although historically high, the cost of the cookout breaks down to less than $7 per person.

USDA: Cost of Home-grilled Cheeseburger up 10 Cents From 2022

Following the Farm Bureau marketbasket survey, USDA’s Economic Research Service Tuesday reports that cheeseburgers will cost more this year for an Independence Day cookout. USDA says that in May 2023, the ingredients for a home-prepared ¼-pound cheeseburger totaled $2.17 per burger, an increase of 10 cents from 2022. Prices for cheeseburger ingredients grew more slowly over the year than prices for all groceries, which rose 5.8 percent from May 2022 to May 2023. Ground beef made up the largest cost of the burger at $1.24, and Cheddar cheese accounted for $0.37. Both these items increased in price by 3.5 percent between 2022 and 2023 and together accounted for half the increase in costs. Bread prices rose the fastest, by 21.5 percent, and added 4 cents to the cost of a burger between 2022 and 2023. Tomato prices fell slightly over the year, but an increase in lettuce prices added one cent to total costs.

USDA Announces Investment in Wildlife Conservation

The Department of Agriculture Tuesday expanded wildlife conservation investments by $500 million over the next five years. The effort leverages all available conservation programs, including the Conservation Reserve Program, through its Working Lands for Wildlife effort. The commitments will ramp up the conservation assistance for farmers, ranchers, private forest owners and tribes with a focus on working lands in key geographies across the country. The funding will help deliver a series of cohesive Frameworks for Conservation Action, which establish a common vision across the partnership of public and private interests and goals for delivering conservation resources in a given ecosystem, combining cutting-edge science with local knowledge, according to USDA. The new funding includes $250 million from the Agricultural Conservation Easement Program and $250 million from the Environmental Quality Incentives Program. USDA Undersecretary Robert Bonnie says, “Working Lands for Wildlife is ready to go to the next level, and today’s incorporation of the Conservation Reserve Program into its vision is a major leap forward.”

CFTC Announces Second Voluntary Carbon Markets Convening July 19

The Commodity Futures Trading Commission announced the second voluntary carbon markets convening set for next month. The meeting will be held on Wednesday, July 19, at the CFTC's Washington, D.C. headquarters at 11:30 a.m. The purpose of the meeting is to discuss recent private sector initiatives for high-quality carbon credits, current trends and developments in the cash and derivatives markets for carbon credits, and public sector initiatives related to carbon markets. CFTC Chairman Rostin Behnam says, “The voluntary carbon markets are at a critical point in their development and growth, and the has an important policy responsibility to promote product innovation, price discovery, and liquidity for high-quality carbon credits.” As the voluntary carbon markets evolve, the goal of the meeting is to build upon the information discussed at the CFTC’s first convening and the information learned from public comments as submitted in response to the Commission’s June 2022 Request for Information on Climate-Related Financial Risk.

Animal Food Manufacturers Vital to US Economy

New research from the American Feed Industry Association shows the industry drives economic growth across the national and local economies. The organization's economic contribution study estimates that in 2023, the total animal food industry, including indirect and induced effects, will generate $267.1 billion in sales. The industry will employ roughly 760,000 full- and part-time and contract employees, paying out $55 billion in salaries and employee benefits before year-end. At the local, state and national levels, the industry will file $18.5 billion in taxes in 2023. The 83-page report showed that the top five states for feed and pet food sales this year will be California, with an estimated $19.5 billion, Missouri at $18.6 billion, Texas at $17.1 billion, Iowa at $16.5 billion, and Kansas at $16.2 billion. The states with the most feed mills included Texas, Iowa, Minnesota, Wisconsin and Pennsylvania. Missouri employs the most animal food manufacturing employees with over 54,350, followed by California, Texas, Iowa and Pennsylvania.

Biden Administration Announces Allocations for High-Speed Internet Program

The Department of Commerce’s National Telecommunications and Information Administration this week today announced allocated funding for reliable high-speed internet. States, D.C., and territories will use funding from the $42.45 billion Broadband Equity, Access, and Deployment program to administer grant programs within their borders. Secretary of Commerce Gina Raimondo says, “What this announcement means for people across the country is that if you don’t have access to quality, affordable high-speed Internet service now – you will.” The funding will be used to deploy or upgrade broadband networks to ensure that everyone has access to reliable, affordable, high-speed Internet service. Once deployment goals are met, any remaining funding can be used to pursue eligible access-, adoption-, and equity-related uses. States, Washington D.C., and territories will receive their formal notice of allocation on June 30, 2023. To view state-by-state funding across the Biden Administration's high-speed Internet portfolio, visit InternetforAll.gov.

Wednesday Watch List

Markets

The U.S. Energy Department's weekly inventory report is set for 9:30 a.m. CDT, including ethanol production. Traders continue to keep a close watch on weather and the latest forecasts ahead of Friday's Acreage and Grain Stocks reports from USDA.

Weather

A few weak disturbances will be moving through the Corn Belt on Wednesday with areas of scattered showers and thunderstorms. Some severe weather will be possible, mostly centered on Wisconsin, though we may see that threat expand elsewhere in the region. Heat that had been over Texas early this week will expand up into Kansas and the Ozarks Wednesday and farther north and east the rest of the week with triple-digit readings for a few days.

Biden Administration Set to Issue New WOTUS Rule by Sept. 1, Asks for Court Stay

LINCOLN, Neb. (DTN) -- EPA plans to complete a proposed rewrite of the 2023 waters of the U.S. rule on or before Sept. 1, 2023, after a Supreme Court ruling in May essentially struck down the Biden administration rule.

The agency filed a motion to stay an ongoing WOTUS lawsuit in federal court on Monday, telling the U.S. District Court for the District of North Dakota that a rewrite is on the way.

"Federal Defendants respectfully request that the court stay this case," EPA said in its motion. "Good cause exists for this request. Federal defendants are developing a new rule to amend the 2023 rule consistent with Sackett."

The agency said in its motion it would be best to preserve resources and conserve "judicial economy" by staying the case. The federal court in North Dakota had issued a 24-state preliminary injunction against the Biden rule.

"Federal defendants' new rule may resolve, or at least narrow, the issues in this case," the agency said in the motion. "A stay will allow the parties time to assess the new rule and determine whether to continue to litigate this case. A stay will also serve the interest of judicial economy because it may result in avoiding unnecessary litigation and/or narrowing the issues."

The injunction is in effect 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.

In addition, an injunction is in place in Texas and Idaho as a result of a lawsuit filed in Texas.

In Sackett v EPA, the Supreme Court ruled that a tract of land owned by Michael and Chantell Sackett in Idaho was not a WOTUS. In addition, the court struck down the agency's use of the so-called "significant-nexus" standard to make Clean Water Act determinations.

EPA and the U.S. Army Corps of Engineers have used significant nexus for years. The standard essentially allows regulators to claim jurisdiction over even dryland features, if there is scientific evidence of a chemical and biological connection to an actual navigable water such as lakes, streams and rivers.

The Sacketts have filed many appeals on the EPA decision in the past 15 years.

The U.S. Court of Appeals for the Ninth Circuit had sided with EPA's wetland assessment on the Sacketts' property. The court's ruling sends the appeals court decision back to the court for reconsideration.

Justice Samuel Alito said in writing the majority opinion that EPA's interpretation of the law "gives rise to serious vagueness concerns in light of the CWA's criminal penalties."

"Due process requires Congress to define penal statutes 'with sufficient definiteness that ordinary people can understand what conduct is prohibited,'" Alito wrote, "and 'in a manner that does not encourage arbitrary and discriminatory enforcement.' Yet the meaning of 'waters of the United States' under the EPA's interpretation remains hopelessly indeterminate.

"The EPA contends that the only thing preventing it from interpreting 'waters of the United States' to 'conceivably cover literally every body of water in the country' is the significant-nexus test."

Alito's ruling noted in defining "waters of the U.S.," the court revisits what has been "a contentious and difficult task." Alito said the phrase "waters of the U.S." has sparked decades of EPA action and litigation.

The boundary between "significant" and insignificant is far from clear, Alito wrote.

EPA argued that "waters" also include wetlands. But Alito points to the presence of puddles and noted in an earlier decision that ponds are not considered part of waters of the U.S.

Plan Would Increase Access to Crop and Livestock Insurance

Representatives Randy Feenstra (R-IA) and Angie Craig (D-MN) introduced the Crop Insurance for Future Farmers Act. It would equip new producers, beginning farmers, and U.S. veterans with the crop insurance protections they need to be productive, profitable, and successful. The legislation would align the definition of “Beginning Farmer” to match most other beginning-farmer programs, extending crop and livestock insurance protections to ten years for new and beginning farmers. This increase to ten years would apply to all federal crop insurance programs, including livestock policies. “We have to do a better job of helping new farmers build successful operations,” Craig says. “We’re working to strengthen the farm safety net and ensure we’re preparing the next generation of family farmers.” Recent estimates say 34 percent of all U.S. producers are over 65 years old, while only eight percent were under 35. Forty percent of all farmlands will transfer ownership over the next 20 years.  

USDA Investing $500 Million to Expand Domestic Biofuels

The USDA is planning to invest up to $500 million to increase the availability of domestic biofuels and give Americans additional cleaner-fuel options at the pump. “By expanding the availability of homegrown biofuels, we’re strengthening our energy independence, creating new market opportunities and revenue streams for American producers, and bringing good-paying jobs and other economic benefits to rural and farm communities.” The first group of applicants for funding through the Higher Blends Infrastructure Incentive Program will receive $25 million for 59 infrastructure projects. In July, the USDA will start accepting applications for another $450 million in grants through the HBIIP. These grants will support the infrastructure needed to lower out-of-pocket costs for transportation, fueling, and distribution facilities to install and upgrade biofuel-related infrastructure like pumps, dispensers, and storage tanks. Grants cover up to 75 percent or $5 million of total project costs to help facilities convert to higher-blend fuels.

BLM Extends Public Comment Period on Conservation Rule

The Bureau of Land Management extended the public comment period on its new land use rule through July fifth. The bureau wants more feedback on its proposal to elevate conservation on federal lands. The announcement is getting significant pushback from the Public Lands Council, conservatives, energy companies, and ranchers in the Mountain West. Under the proposal, conservation would get equal footing to other land uses like oil and gas drilling, mining, grazing, and timber harvesting. Environmental groups would be allowed to lease federally owned parcels for preservation and habitat restoration. Opponents say changes to the rules for 246 million acres of land would undermine the industries that rely on those lands. Wyoming Governor Mark Gordon says, “Simply put, if it ain’t broke, don’t fix it. It pits productive uses of public lands against conservation – a gross mischaracterization of the concept.” The House and Senate already have bills to halt the rule.

Lawmaker Reintroducing Bill to Get EV Industry into Biofuel Program

A Democratic lawmaker announced plans to reintroduce a bipartisan bill that would get electric vehicles into the national biofuel blending program. The legislation would allow electricity generated from renewable biomass to qualify for credits under the Renewable Fuel Standard. The White House recently stopped plans to do so for fear of lawsuits. Under the bill, companies that produce power generated from renewable gas used for charging EVs would be eligible to generate lucrative credits under the RFS. That’s a slight but important difference from the Environmental Protection Agency’s approach, which would have allowed EV manufacturers like Tesla to generate the credits. “The manufacturers don’t produce the electricity,” says California Representative John Garamendi, the bill’s sponsor. “We know that the biomass/biogas industry can produce electricity in a way that benefits the overall economy and ecology of the nation.” The bill directs the EPA, which oversees the RFS, to implement the plan.

USDA Approves Lab-Grown Chicken

The USDA gave two startup companies the go-ahead to sell lab-grown chicken. GOOD Meat, a subsidiary of food tech company Eat Just, Inc., and UPSIDE Foods will be allowed to sell their products that have been cultivated from real animal cells. Investopedia says chicken from GOOD Meat and UPSIDE has been declared safe to eat by the USDA. The announcement followed a “no questions” letter from the Food and Drug Administration earlier this year. Cultured meat, also called cell-based or lab-grown, uses stem cells from animal fat or muscle tissue to feed cells, allowing them to grow. It’s then grown to the proper density in bioreactors before getting separated by a centrifuge. “This news was a major moment for our company, the industry, and the food system,” says Josh Tetrick, CEO of GOOD Meat and Eat Just. Analysts predict the cell-cultured meat industry will eventually be worth approximately $25 billion.

Lawmaker’s Working Group to Address Farm Labor Shortage

Members of the House Agriculture Committee have formed a bipartisan Agricultural Labor Working Group to tackle the ag industry’s continual labor shortage and address other workforce issues. The group is chaired by Representatives Rick Crawford (R-AR) and Don Davis (D-NC). It will look at solutions to the agriculture industry’s labor needs, including reforming the existing H-2A visa program. Those visas currently allow agricultural employers who meet specific requirements to bring a limited number of foreign nationals to the U.S. to fill temporary, seasonal farm jobs. However, in recent years the number has been insufficient to meet the workforce needs of livestock farmers that need year-round employees. The National Pork Producers Council supports expanding the H-2A visa program to year-round agricultural laborers. It also backs reforming the visa system to help with complexity, backlogs, predictability, and costs. The committee will issue an interim report detailing both the challenges and potential solutions.

Tuesday Watch List

Markets

A report on U.S. durable goods orders in May will be out at 7:30 a.m. CDT Tuesday, followed by May U.S. new home sales and a report on U.S. consumer confidence in June at 9 a.m. Traders remain keen on the latest weather forecasts and USDA has not had a daily export sales announcement since June 9.

Weather

Another couple of disturbances will be moving through the Plains on Tuesday, over the top of a strong heat ridge in Texas. Thunderstorms could be very strong in a few areas, especially along the Kansas-Oklahoma border, where conditions are more favorable for very strong winds out of a convective system that may invoke the term derecho if it comes together.

U.S. and India Announce Resolution on Key Trade Issues

U.S. Trade Representative Katherine Tai announced that the United States and India have agreed to terminate six outstanding disputes at the World Trade Organization. India also agreed to remove retaliatory tariffs that it imposed in response to the U.S. Section 232 tariffs on steel and aluminum. The Indian tariffs included American products like chickpeas, lentils, almonds, walnuts, and apples. These tariff cuts will restore and expand market opportunities for U.S. agricultural producers and manufacturers. “This agreement represents the culmination of intensified bilateral engagement over the last two years to deepen our economic and trade ties,” Tai says. “The result is U.S. producers and manufacturers will now enjoy renewed access to a critical global market, and we will strengthen our trade relationship with one of our closest partners.” As India’s Prime Minister makes an official state visit to the U.S., Tai says the agreement opens a new chapter of bilateral cooperation.

Ag Reacts to the Dispute Settlement Between the U.S. and India

Farmers for Free Trade issued a statement responding to the resolution of a number of trade disputes between India and the U.S. FFT Executive Director Brian Kuehl (KEEL) says India has always represented an enormous market for America’s ag exports. “While there has long been frustration over unnecessary barriers to entry into the Indian market, this announcement is a positive step forward in removing tariffs and opening trade,” he says. “The fact that India placed tariffs on U.S. products in the first place is a reminder of the damage trade wars caused here at home.” Ag Secretary Tom Vilsack says the removal of the tariffs is a major win for America’s farmers. “Producers will now be able to increase sales of apples, chickpeas, lentils, almonds, and walnuts to one of America’s top trading partners,” Vilsack says. “USDA applauds the Office of the USTR for their diligence in reaching this welcome agreement.”

USDA Supporting American Producers, School Meals, and Emergency Operations

Ag Secretary Tom Vilsack says USDA is providing $2.7 billion to support American farmers, students participating in school meal programs, and emergency food operations. Almost $1.3 billion goes to states to purchase foods to be distributed to schools for their meal programs, and almost $1 billion for states to order commodities from USDA vendors for emergency food providers. Those emergency providers include food banks and community kitchens that face high demand and supply chain disruptions. USDA is also making up to $400 million in grants available to help support domestic fertilizer production capacity and lower costs for producers. “American agriculture has continued to be resilient in the face of significant and unpredictable challenges,” Vilsack says. “Today’s comprehensive set of investments will help producers by increasing commodity purchases for schools and emergency food providers and supporting expanded domestic fertilizer capacity to help lower costs. This better prepares us for the future.” 

Senate Appropriations Approves Ag-FDA Funding Bill

Senate appropriators unanimously approved a bill to fund the Agriculture Department and Food and Drug Administration through fiscal year 2024. That’s a level of consensus that stands in stark contrast to the deep partisan divides on display during the House’s markup of their agriculture and FDA spending bill last week. The Senate spending bill, which the panel approved 28-0 after just over an hour of discussion, would fund the agencies at $25.993 billion, more than $8 billion above the funding level in the Republican-led House bill. That House spending proposal drew intense pushback from Democrats on the Appropriations Committee over the course of a more than eight-hour markup on June 14. That session ended very abruptly after a particularly heated exchange between Representative Steny Hoyer (D-MD) and committee chair Kay Granger (R-Texas). New Mexico Democrat Martin Heinrich, chair of the subcommittee, lauded the bipartisan collaborative nature of the Senate’s spending bill.

American Agri-Women Release Vision for 2023 Farm Bill

The American Agri-Women released their vision for what’s important in the 2023 Farm Bill. “Agriculture is on the front lines of challenges like dealing with climate, food security, national security, and world-class telecommunications to enable further developments in natural resource management,” says AAW President Heather Hampton-Knodle (Kuh-NO-dle). The group’s recent work builds on concepts the group published in 2022 that include fundamentals like well-funded, flexible crop insurance; revitalizing research infrastructure; access to markets and inputs and credit to help pay for exponential increases in inputs and equipment; and modernizing aging utilities for water and underserved telecommunications in rural areas. Their additions to the original vision include using export programs to secure global supply chains, increasing programs to support rural large-livestock veterinarians, and workforce development for the timber industry. “The farm bill is needed for food security and national security as well as playing roles in a positive trade balance,” says Hampton-Knodle.   

Drought Intensifies in Several Parts of Rural America

Despite mostly near- to below-normal temps in much of the Midwest, excluding the Upper Midwest and Western Corn Belt, much of the region didn’t see appreciable rainfall. As a result, short-term dryness continued to worsen, leading to widespread deterioration. The only improvements took place in the Eastern Corn Belt and Kentucky. Much of the Northern Plains had below-average rainfall during the week, adding to short-term precipitation deficits. Above-normal temps and high winds only made drought conditions worse by increasing moisture loss from soils and vegetation. Several rounds of heavy rainfall with thunderstorms traveled through the south from Oklahoma to Mississippi, leading to targeted improvements in abnormal dryness. Improvements took place in the Texas Panhandle because of well-above-average rainfall. However, the Lower Mississippi and Tennessee Valleys saw short-term dryness continue to increase. Another week of above-normal rainfall across many areas of the Intermountain West resulted in widespread but targeted improvements. 

Monday Watch List

Markets

Back from the weekend, traders will examine rainfall amounts and the latest forecasts. 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.

Weather

A cold front moving through the Mid-Atlantic and South will keep areas of showers and thunderstorms going for Monday, after bringing widespread rains to much of the Corn Belt over the weekend. The Great Lakes will see some showers as well as small parts of the Plains and Prairies. South of the front it will be very hot, with another round of triple digit heat for Texas and nearby areas.

Lawmakers Introduce American Farmers Feed the World Act

Lawmakers this week introduced the American Farmers Feed the World Act of 2023. The bipartisan bill would “keep food in America’s international food aid programs.” Specifically, the legislation aims to restore the original intent of the Food for Peace program without spending additional Farm Bill resources, all while safeguarding the interests of U.S. farmers. U.S. Wheat Associates joined the National Association of Wheat Growers and other agricultural organizations for the introduction of the bill Thursday. USW Director of Trade Policy Peter Laudeman says, “The reforms in the American Farmers Feed the World Act of 2023 will ensure that more food gets to more people in need throughout the world, without spending any additional resources.” Representative Tracy Mann, a Kansas Republican who joined colleagues to introduce the legislation, says, “This bill puts a stake in the ground: it’s a noble thing to feed hungry people, and we should use American commodities as we do it.”

Vilsack to Announce Biofuels Funding Monday

Agriculture Secretary Tom Vilsack heads to the Twin Cities area in Minnesota Monday. The Department of Agriculture says Vilsack will announce significant new funding being awarded by USDA to bolster and expand the availability of homegrown biofuels nationwide. During the event, USDA says Vilsack will also underscore USDA's efforts to invest in climate-related research and development in states like Minnesota, which helps result in scientific breakthroughs such as innovative biofuel technologies that combat the climate crisis, lower costs for American producers and families, and boost American energy independence. In the briefing regarding the announcement, USDA did not announce an exact location for the event. The announcement is part of President Biden's Investing in America agenda to rebuild our economy from the bottom up and middle out by rebuilding our nation's infrastructure, creating good-paying jobs, and building a clean energy economy to tackle the climate crisis and make our communities more resilient. 

California Delays Prop 12 Implementation

California this week delayed the implementation of Proposition 12. Granting six months of additional relief for products in the supply chain allows grocery stores to remain stocked so Californians have uninterrupted access to pork products, especially with rising food prices, according to the National Pork Producers Council. In a statement, NPPC claims, “While this temporary solution does not solve the challenges and uncertainty California Proposition 12 brings to our industry, NPPC looks forward to working with Congress to find a permanent solution to this problem.” The U.S. Supreme Court ruled in favor of the law earlier this year, stating Congress, not the courts, has the authority to block the law. Proposition 12 requires veal calves, breeding pigs, and egg-laying hens to be housed in systems that comply with specific standards for freedom of movement, cage-free design, and specified minimum floor space. Implementation of Proposition 12 is now set for January 1, 2024.

USDA Announces $300 Million Investment for Underserved Producers

The Department of Agriculture Thursday announced its selection of 50 projects for potential award, totaling approximately $300 million, for underserved producers funding. The projects will help improve access to land, capital, and markets for underserved farmers, ranchers, and forest landowners. The funding comes from the Increasing Land, Capital, and Market Access Program. Agriculture Secretary Tom Vilsack says, "By providing the resources, tools and technical support needed to directly help local farmers and ensure we have a strong agricultural system across the country." For one of the projects, the Community Development Corporation of Oregon will work to provide long-term and sustainable land access to disadvantaged refugee and immigrant beginning farmers in Oregon's east Multnomah and Clackamas counties. Another project by Maine Farmland Trust will work with low-income farmers on access to low-interest capital for land purchase or business operations, farm upgrades and infrastructure investments. See the full list of Increasing Land Access Program selected projects at www.fsa.usda.gov.

USDA: Access to Primary Care Varies Across the Country

New data released this week from USDA’s Economic Research Service shows access to primary care physicians varies across the United States. The number of primary care physicians per 10,000 residents is generally higher in much of the Northeast, along the West Coast, in Hawaii, and parts of the mountainous West and upper Midwest. The availability of primary care physicians per capita is generally lower in much of the Great Plains—especially the Southern Great Plains—and the Lower Mississippi Delta and Southeast. However, there are substantial variations in the availability of physicians within these regions. For instance, in rural counties, there are fewer physicians per capita in counties adjacent to urban counties than in those farther from urban areas. USDA says this is likely because residents travel from nearby rural areas to urban doctors. The lowest rates of physicians per capita are in rural counties with an urban population of less than 2,500.

Pivot Bio Releases First Impact Report

Pivot Bio, a sustainable agriculture company, released its inaugural impact report this week. The report documents how farmers are using their products to improve their productivity and profitability without synthetic fertilizer polluting local rivers or contributing to climate change. In 2022 alone, Pivot Bio helped its customers replace over 32,000 tons of synthetic nitrogen fertilizer, avoiding roughly 226,400 metric tons of CO2e - equivalent to powering 44,000 U.S. homes for a year. Pivot Bio CEO Karsten Temme says, "This data shows farmers are using biological nitrogen to reliably increase their productivity, profitability, and sustainability." The company's microbial nitrogen is manufactured with an emissions footprint that is just two percent that of synthetic fertilizer and uses 1,000 times less water. Pivot Bio's microbial nitrogen can replace approximately a quarter of a farmer's synthetic nitrogen. In 2022, it was used by farmers on over three million acres in the United States, and the company reported revenue of over $60 million.

Friday Watch List

Markets

USDA's export sales report is due out at 7:30 a.m. CDT Friday, but expectations are low as the week only had one modest soybean sale announcement, reported to unknown destinations. At 2 p.m., USDA's June 1 cattle on-feed and monthly cold storage reports are set to be released. The latest weather forecasts remain the primary concern of grain traders.

Weather

A front that has been stuck in the Northern Plains all week continues to be active on Friday. Showers and thunderstorms have been rather sporadic this week but are expected to increase in intensity as a system in the West approaches Friday night. Additional severe storms are possible near the Texas Panhandle yet again today. An upper-level system continues to spin around the East Coast where showers will be possible across the far eastern Midwest. In between the two, another day of hot and dry conditions continue to stress crops.

EPA Sets Final Renewable Fuel Volumes for 2023-2025

The Environmental Protection Agency Wednesday released final volume requirements under the Renewable Fuel Standard for 2023, 2024 and 2025. EPA Administrator Michael Regan says, “Today’s final rule reflects our efforts to ensure stability of the program for years to come.” The announcement provides for annual growth in total renewable fuel volumes, although with lower conventional biofuel volumes than EPA had proposed. For 2023, EPA set an implied 15.25-billion-gallon requirement for conventional ethanol, which includes a supplemental 250 million gallons a prior court decision required EPA to restore to the RFS. For 2024 and 2025, EPA holds the implied conventional volume level at 15 billion gallons, despite proposing 15.25 billion gallons for those two years. National Corn Growers Association President Tom Haag says, “A multi-year RFS volume rule offers stability and certainty for renewable fuels. However, when it comes to addressing pressing energy, environmental and economic challenges, EPA’s final rule falls short of the emission reductions and cost-saving benefits the higher proposed ethanol volumes would have provided.”

Grassley Condemns Biden Biofuels Bait-And-Switch

Senator Chuck Grassley Wednesday criticized the Environmental Protection Agency’s final rule setting minimum biofuels blending levels for the next three years below current production capabilities. The Iowa Republican says, “For an administration obsessed with reducing carbon emissions, this rule makes absolutely no sense.” While the plan makes modest increases to blend levels for certain biodiesel products, the overall biofuels volume remains unchanged, and ethanol volumes were reduced from proposed rule levels. The American Soybean Association also criticized the EPA announcement, as the rule does not accurately reflect the growth expected in the industry and falls far below the industry's current production. ASA President Daryl Cates of Illinois says the announcement fails "to account for the progress being made in biofuels investment and growth." Expanded crush capacity coming online in the next few years translates into about 700 million gallons of renewable diesel, far above EPA's three-year RVO growth of only about 590 million gallons.

Ernst, Stabenow, Introduce FARMLAND Act

Senators Joni Ernst and Debbie Stabenow this week introduced The Foreign Agricultural Restrictions to Maintain Local Agriculture and National Defense, or FARMLAND Act. The legislation would overhaul the current system that has allowed China’s malign influence to threaten American food security and national security by buying up agricultural land in the United States. Ernst, an Iowa Republican, says, “America needs to know how our foreign adversary has been allowed to use loopholes to attempt to exploit any potential vulnerability and assert control over our agriculture industry.” Stabenow, a Michigan Democrat, adds, “This bill safeguards our nation’s farmland and food supply by overhauling the system for federal oversight of foreign land ownership.” Foreign ownership and investment in U.S. agricultural land has nearly doubled over the last decade, according to USDA. Among other things, the FARMLAND Act would develop a publicly available database of agricultural land owned by foreign persons, and prohibit them from participating in Farm Service Agency programs.

USDA Reminds Producers to File Crop Acreage Reports by July 17

Agricultural producers who have not yet completed their crop acreage reports after planting should make an appointment with their local USDA office before the applicable deadline, which for many places and crops is July 17. USDA’s Farm Service Agency also reminds producers with login access to farmers.gov of several features that can help expedite acreage reporting, such as the ability to view, print and label maps. FSA Administrator Zach Ducheneaux says, “Filing an accurate and timely crop acreage report is an important step in receiving USDA program benefits, including safety net, conservation, and disaster assistance support.” July 17 is a major deadline for most crops, but acreage reporting deadlines vary by county and by crop. Producers should also report crop acreage they intended to plant but were unable to plant because of a natural disaster. Producers can contact their FSA county office for acreage reporting deadlines that are specific to their county. 

2022 USDA Nutrition Assistance Spending Declines

Federal spending on USDA’s food and nutrition assistance programs totaled $183.0 billion in fiscal year 2022, down six percent from the record-high spending of $194.7 billion in 2021, adjusted for inflation to 2022 dollars. Before adjusting for inflation, total 2021 spending was $183.3 billion. In 2022, the Supplemental Nutrition Assistance Program maximum allotment permanently increased after the Thrifty Food Plan was re-evaluated, and several States also ended SNAP emergency allotments, which temporarily raised all recipients’ benefits to at least the maximum for their household size. SNAP spending totaled $119.5 billion in FY 2022, one percent less than the inflation-adjusted record-high spending in 2021. Spending on the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC, totaled $5.7 billion—an increase of seven percent from inflation-adjusted spending in 2021, reflecting an increase in program food costs per participant. Combined spending on child nutrition programs totaled $35.1 billion in FY 2022, increasing 19 percent from the inflation-adjusted total in the previous year.

USDA Promoting Summer Food Safety

Whether you’re a grill master or a first-time barbecue cook, food safety should always be part of your routine to ensure a healthy and happy Fourth of July. USDA is promoting summer food safety tips as consumer behavior studies have shown that individuals don’t always properly wash their hands or use a food thermometer. Ensure your food is safe to eat this Fourth of July by following a series of food safety steps. Start with cleaning the grill and other items before the touch food, avoid cross contamination of raw meats and vegetables, and use food thermometers to ensure your grilled food is ready. Although frozen products may appear to be pre-cooked or browned, treat them as raw food and cook thoroughly. The final tip is to chill food properly. Perishable food should be consumed or refrigerated within two hours, one hour if outdoor temperatures are 90 F and above.

Thursday Watch List

Markets

Thursday morning activities start with weekly U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m., but no export sales report until Friday. U.S. existing home sales and leading indicators for May follow at 9 a.m. U.S. Energy Department's report of natural gas storage is set for 9:30 a.m., followed by weekly energy inventories at 10 a.m. Federal Chairman Jerome Powell goes before the Senate, likely repeating Tuesday's testimony to the House.

Weather

A persistent weather pattern this week continues on Thursday with a front stuck up in the Northern Plains that should remain active and a system in the Southeast that continues to spin. Thunderstorms are expected to develop in the High Plains yet again Thursday, which may be severe. Elsewhere in the Corn Belt it will be hot and dry, with stresses continuing to mount as the region looks forward to weekend rainfall.

Poll Shows Voters Think Rural Health Care Lags Behind Urban Areas

A new survey from One Country Project shows that voters think health care in rural communities is markedly worse than in the rest of America. Those findings were revealed soon after the OCP hosted its annual Rural Progress Summit. Stakeholders from across the U.S. gathered to discuss challenges facing rural communities and the importance of elevating rural priorities on the national stage. “Access to quality, affordable health care shouldn’t be determined by your zip code,” says OCP Founder and former Senator Heidi Heitkamp. More than 130 rural hospitals have closed since 2010. That leaves rural residents with no option but to travel hours to the nearest medical center, which is especially dangerous in a life-threatening emergency. Air ambulances are often relied on, and the survey shows overwhelming support, at 84 percent, for increasing the Medicare reimbursement rate for air medical services. Medicare currently covers just 50 percent of the associated costs.

Rural Mainstreet Index Reaches Highest Level Since 2022

After dropping below growth neutral in March, the June Rural Mainstreet Index expanded above the threshold for a third-straight month to its highest point since May 2022. That’s according to the June monthly survey of bank CEOs in rural areas of a ten-state region dependent on agriculture. The overall June reading is 56.9, the highest since 2022 and up from May’s 55.8. The index range is zero to 100, with 50 representing growth neutral. “After negative growth during the first quarter of 2023, the Rural Mainstreet economy experienced positive but slow economic growth for the second quarter,” says Ernie Goss of Creighton University. The region’s farmland price index jumped from 56.3 in May to 59.3 in June. Bank CEOs ranked Federal Reserve rate hikes as the greatest challenge ahead during the next 12 months. Bankers also continue to have a positive outlook for payment of farm loans in the next year.

Five Benefits of Modern Dairy Practices

Dairy is an important part of the diets of millions of Americans. The average person consumes about 276 pounds of dairy in a year. However, despite its positive impact, a significant portion of the population often misunderstands dairy. The Association of Equipment Manufacturers’ Dairy Leadership Group put together the top five benefits of modern dairy. The first is the U.S. dairy industry produces more milk than in 1944 with 16 million fewer cows. The dairy industry accounts for 3.5 percent of total U.S. GDP. By way of comparison, the entire auto industry accounts for three percent. Dairy is also more environmentally friendly, having reduced its GHG footprint by 17 percent and water usage by 10 percent in the last 15 years. Ninety-seven percent of the 34,000 dairy farms are family-owned and operated. Dairy is also an excellent source of 18 of the 22 essential nutrients needed for a healthy life.

American Farmland Trust Applauds No EMIT’s Act

Representatives from Wisconsin and California introduced the “Naturally Offsetting Emissions by Managing and Implementing Tillage Strategies” or “NO EMIT’s Act.” The bill would help support farmers in improving soil health. American Farmland Trust applauded the bipartisan bill’s introduction and its inclusion of one of AFT’s top farm bill priorities: establishing a federal match for state and Tribal soil health programs. “In recent years, states have begun creating innovative soil health programs that fill current gaps in support and help producers voluntarily adopt soil health practices in locally tailored ways,” says Tim Fink, AFT Policy Director. “State programs can struggle to keep pace with producer demand, so creating a federal program to match state and Tribal funding would help leverage existing soil health programs and incentivizes others to create programs of their own.” Creating that federal matching program has broad support from AFT, six state agencies, and stakeholders from 29 states.

USDA Accepting Applications for Chile Agribusiness Trade Mission

The USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for a trade mission to Santiago, Chile, September 25-29. American agribusinesses will participate in business-to-business meetings with potential importers from both Chile and Peru. The trade mission coincides with Peru’s USDA-endorsed food trade show that offers additional networking opportunities for participants. “This year, we are celebrating the 200th anniversary of U.S.-Chile diplomatic relations,” says FAS Administrator Daniel Whitley. “Chile and the neighboring Peru are some of our key trading partners, representing the second and third-largest markets in South America.” Total agricultural exports to these markets have grown significantly since establishing the Chile Free Trade Agreement and the Peru Trade Promotions Agreement. Exports to this region exceeded $2 billion in 2022. During January-April 2023, U.S. ag exports to Chile have increased by four percent from the same period last year. The region features relatively high per capita incomes and purchasing power.

PLC Leads Grassroots Campaign Against BLM Land Rule

The Public Lands Council launched a grassroots campaign regarding the Bureau of Land Management’s Proposed rule titled “Conservation and Landscape Health.” The proposed rule creates significant concerns about changes to the BLM’s authority to manage the nation’s public lands and opens the door to removing livestock grazing from the range. “The BLM must follow the law in managing our nation’s public lands for multiple uses and sustained benefits for all,” says PLC Executive Director Kaitlynn Glover. “Public lands grazing is an important conservation tool that protects these landscapes and is integral to national food security.” PLC also wants to remind the bureau that grazing is an essential use of America’s public lands, and they hope all stakeholders will join the agency in sending a letter to the BLM’s leadership underscoring the responsibility to be good partners, especially since they’ve “fallen short,” according to Glover. The agency stops accepting comments on July 5.

Wednesday Watch List

Markets

Traders will be paying attention as Federal Reserve Chairman Jerome Powell speaks to Congress Wednesday and to the Senate Thursday, interested in any comments about the future of interest rates. The Environmental Protection Agency is expected to release renewable volume obligations sometime Wednesday, as rumored numbers began circulating Tuesday. Traders will stay close to the latest weather forecasts and consider Tuesday afternoon's lower crop ratings for corn, soybeans and spring wheat.

Weather

A system continues to spin in the Southeast on Wednesday, which will continue to produce scattered showers and thunderstorms. A front in the Plains will be active as well. Between the two, hot and dry conditions will pressure remaining soil moisture.

Tuesday Watch List

Markets

Back from the three-day weekend, traders will be paying close attention to weather data and the latest forecasts, the main focus of June's grain markets. A report on May U.S. housing starts is set for 7:30 a.m. CDT, followed by USDA's weekly report of export inspections at 10 a.m. The Crop Progress report will have the latest crop condition ratings at 3 p.m.

Weather

A pair of ridges are trying to connect up early this week, causing heat to build from Texas into parts of the Midwest. The ridges have stalled a front across the Northern Plains and eastern Canadian Prairies, where showers will come in waves the next few days. A system stuck in the Southeast will see showers continue there as well.

USDA Investing $320 Million to Strengthen Supply Chains

The USDA is investing $320 million to create new and better markets for agricultural producers and food businesses in 19 states across rural America. “Our goal is to expand processing capacity, create fairer markets and more revenue streams and market opportunities to help bring down food costs for families at the grocery store,” says Ag Secretary Tom Vilsack. “We’re partnering with entrepreneurs in rural areas to build brighter futures, connect business owners to new markets, and create good jobs for generations to come.” USDA is investing the funds to strengthen food supply chains and create more opportunities for producers and entrepreneurs in 19 states, including Alabama, Connecticut, Iowa, Minnesota, and others. For example, family-owned businesses like a meat market and a bison processing facility will be able to expand their production capabilities, maintain the highest quality control possible, and save jobs. For more information on opportunities through USDA Rural Development, go to rd.usda.gov.

National Drought Summary Showing a Mixed Outlook

The Weekly Drought Monitor showed above-normal precipitation and below-normal temperatures resulting in another week of some improvements in the western U.S. The exception is the Pacific Northwest, where drought conditions continue to worsen along the northern Cascade Mountains. The monitor shows a mix of improving and worsening conditions in the Great Plains. Improvements are confined mainly in the western Great Plains. The Corn Belt is seeing widespread degradation of moderate drought and abnormal dryness. High evaporation rates have resulted in significant loss of soil moisture. Any rainfall over the past week in the Southeast U.S. fell in areas that didn’t need it. Virginia is showing moderate drought and abnormal dryness is showing in other locations through the southeast. The Southern U.S. has more mixed totals. Locations in Louisiana, Mississippi, and Tennessee experienced increasing dryness. In western parts of the Southern Plains, pockets of heavy rainfall continued adding to 60-day precipitation surpluses.

Young Cattlemen’s Conference Graduates 71 Leaders

The National Cattlemen’s Beef Association Young Cattlemen’s Conference program concluded its successful relaunch after a three-year hiatus. This year’s class included 71 leaders from across the country and every sector of the beef industry. After nine days of intensive training, including a five-city tour showcasing every facet of the beef industry, members completed the trip with a full day of representation in Washington, D.C. The event is designed to expose participants to the full supply chain. Completing the YCC prepares participants to serve as leaders within their state associations in addition to being advocates for the NCBA and the beef community. “During the YCC, each member of the class has had the opportunity to better understand the cattle and beef industries and the complex relationships that represent the industry today,” says 2023 YCC Chair Jake Feddes of Montana. “Each member has also made connections that will benefit them in the future.”

County Committee Nominations are Now Open

The USDA is accepting nominations for county committee members. Local elections will occur later this year. County committee members make important decisions on how federal farm programs are administered locally. All nomination forms for the 2023 election must be postmarked or received by the local Farm Service Agency by August 1. “Producers serving on FSA county committees play a critical role in the day-to-day operations of the agency, serving as the eyes and ears of the producers who elected them,” says FSA Administrator Zach Ducheneaux. Elections for members will take place in certain Local Administrative Areas (LAA). Ag producers who participate or cooperate in a USDA program or reside in the LAA that’s up for election this year may be nominated for candidacy. Nationwide, more than 7,700 dedicated members of the agricultural community serve on FSA county committees, which are made up of three to 11 members serving three-year terms.

Legislation Supports Advancements in Ag Research and Innovation

Several senators introduced legislation to invest in public research, develop regionally adapted seed varieties and animal breeds, and enable the U.S. to maintain a robust food and ag system. The Seeds and Breeds for the Future Act promotes the development of ready-to-use, regionally adapted, and publicly available seed varieties and animal breeds. This would give farmers more tools to confront drought and varying growing conditions, and to have plant and animal varieties that are better suited to their area. Regionally developed seed varieties often result in substantial increases in hardiness and yields. It will also ensure America’s farmers have access to domestically produced seeds and breeds that are developed through publicly available research. “We must make sure our farmers and producers have the tools they need to adapt and compete on a global stage,” says bill co-sponsor Tammy Baldwin of Wisconsin. “This will make sure our research keeps up with farmer innovation.”

Lamb Board Building Local Relationships

The continuing trend toward local food sourcing has put hometown butchers and specialty meat shops on the radar of likely lamb consumers. In June, the American Lamb Board connected with 50 of these U.S. businesses through its new “Butcher Box” direct mail kit. The goal is to reengage with this audience for long-lasting relationships that lead to increased sales of domestic lamb. ALB research found that 24 percent of consumers made retail lamb purchases at independent markets and-or butcher shops. Of those consumers, 30 percent were heavy lamb users, and 35 percent were light lamb users. Some of the selected shops already carry lamb, while some don’t routinely offer it. The initial 50 butchers have a chance to get selected as one of 25 “American Lambassadors” to advocate for American lamb. For information on the new list of the 25 American Lambassadors and places to buy lamb, go to americanlamb.com.

Top 5 Things to Watch - Market Holidays and Weather Markets

OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of June 18. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com.

1. Markets take a holiday: The week kicks off with U.S. markets closed for the national Juneteenth holiday Monday. Electronic markets open at 7 p.m. CDT and DTN market updates will pick up Tuesday morning.

2. Will the weather market continue?: Weather models are inconsistent and more varied than usual, but we're likely in for a warmer and drier week, which grain traders will watch closely, given the bullish actions of late. There are chances of showers into the weekend, though trusting those inconsistent models at the moment makes a good meteorologist wince. 

3. Pest get attention: It's that time of the year where insect infestations can spring up quickly, so the DTN Crops team will be watch for the latest outbreaks and update their pest reports.

4. Will cattle culling continue?: While rain showers have given respite to some areas, in general soil moisture levels remain low. That's continuing to put a strain on forage and hay supplies. We'll explore the continued potential for summer herd culling. The June cattle on-feed report will hit at 2 p.m. Friday; look for DTN analysis soon after the report is released.

5. RFS delays: The first multi-year (2023-25) numbers for the Refined Fuels Standard will be announced, with our coverage soon after the report's release Wednesday.

Tentative Labor Agreement at West Coast Ports

On Wednesday night, the Pacific Maritime Association and the International Longshore and Warehouse Union announced a tentative agreement on a new six-year contract. The agreement covers all of the West Coast ports and must still be ratified by both sides. “We are pleased to have reached an agreement that recognizes the heroic efforts and personal sacrifices of the ILWU workforce in keeping our ports operating,” says MPA President James McKenna and ILWU President Willie Adams in a joint statement. “We’re also pleased to turn our full attention back to the operation of the West Coast Ports.” U.S. Meat Export Federation President and CEO Dan Halstrom says this is tremendous news for U.S. red meat exporters and their overseas customers. “This agreement will restore stability and confidence in the performance of the West Coast ports and is essential for our industry,” Halstrom says. “We thank both sides for their hard work.”

Senate Bill Will Address Prop 12

Kansas Senator Roger Marshall will introduce a bill designed to address California’s Prop 12, which was recently upheld by the Supreme Court. The Hagstrom Report says Marshall’s bill would stop states from enacting laws that affect agricultural production in other states. The Ending Agricultural Trade Suppression (EATS) Act will preserve the right of states and local governments to regulate agriculture within their jurisdictions free from the interference of other jurisdictions. “U.S. agriculture currently lacks access to new markets because of non-tariff trade barriers overseas,” Marshall says. “The last thing we need is a big state like California imposing its will on ag-heavy states with regulations that will restrict our ability to trade among the states.” Bill co-sponsor John Cornyn of Texas says California shouldn’t be able to tell ranchers in his state how to do their jobs.  Iowa Representative Ashley Hinson plans to introduce a companion measure at a later date.

Farm Bureau Continues Advancing Farmers’ Right to Repair

The American Farm Bureau Federation signed a memorandum of understanding with CLAAS (CLAHS) of America regarding the right to repair. This brings the number of signed MOUs with ag manufacturers to five. Combined, the agreements cover about three-quarters of the agricultural machinery sold every year in the United States. “The MOU with CLAAS demonstrates our continued commitment to ensuring farmers have access to the tools they need to keep their farms running and America’s families fed,” says AFBF President Zippy Duvall. “Farmers and ranchers are more dependent on technology than ever, and they asked us to find a private-sector solution on the right to repair.” Eric Raby, senior VP for the Americas with CLAAS says, “We’re providing the promised solutions for our customers’ businesses, as their success and ours go hand in hand.” The agreement means farmers and independent repair shops can now access everything needed to self-repair their machines. 

USDA Updates ERP Phase Two

The USDA is updating the Emergency Relief Program (ERP) Phase Two. The goal is to provide a method for valuing losses and accessing program benefits to eligible producers of certain crops. Those crops can include grapes grown and used by the same producer for wine production or forage that’s grown, stored, and fed to livestock, that don’t generate revenue directly from the sale of the crop. These updates ensure that ERP benefits better reflect these producers’ actual crop losses resulting from 2020 and 2021 natural disaster events. The Farm Service Agency will begin accepting Phase Two applications from eligible wine grape and forage producers once the technical correction to ERP is published in the Federal Register, which should happen by this Friday (today), June 16. The deadline to submit applications for ERP Phase Two is July 14. FSA Administrator Zach Ducheneaux says these updates address the unique needs of different producers.

NCGA Elects New Leadership

The National Corn Growers Association’s Board of Directors elected Ken Hartman, Jr., as the organization’s next first vice president for the new fiscal year starting on October 1. He’s a fifth-generation farmer operating a grain farm with his wife, Anita, daughter, Amanda, and mother, Joan, in Illinois. “I’m honored to continue serving America’s corn farmers with NCGA,” says Hartman. “I look forward to working with my fellow officers as we tackle issues that are critically important to corn growers and rural America.” Hartman currently chairs the NCGA Finance Committee. Hartman was honored by Prairie Farmer magazine with a Master Farmer Award in 2021 for his exceptional ag production skills and commitment to family and service. On October 1, Tom Haag (HAYG) of Minnesota becomes chairman, and the current first vice president, Harold Wolle (WO-lee) of Minnesota, becomes NCGA president. In October 2024, Wolle becomes chairman, and Hartman becomes the organization’s President.

Public Lands Council, Western Governors Lead BLM Rule Opposition

A proposed rule allowing the Bureau of Land Management to offer conservation-only leases was written without consulting people like farmers and ranchers who depend on the land. In a letter to BLM director Tracy Stone-Manning, about 60 livestock groups say cattle and sheep producers have partnered with BLM in managing 245 million acres of federal land in the West for generations. However, BLM didn’t engage them in developing the proposed rule and gave no warning ahead of time that it was developing a rule. “Individually, each of the components of the proposal would have required detailed discussion,” the letter says. “Together, the components demand BLM do the necessary work of engaging stakeholders to avoid conflict and develop lasting outcomes.” BLM’s five public information sessions have done little to compensate for the agency’s lack of advanced discussions. Instead of engaging stakeholders where they operate, BLM is holding briefings in urban areas. 

Friday Watch List

Markets

Other than the University of Michigan's report on U.S. consumer sentiment, due out at 9 a.m. CDT, there are no significant reports Friday. Traders will be closely watching the latest weather forecasts. Markets will close at their normal times Friday, ahead of the Juneteenth market holiday on Monday and resume trading at 7 p.m. CDT Monday evening.

Weather

A system that has moved into the Plains will continue to slowly progress eastward on Friday. Areas of showers and thunderstorms continue to be possible there as well as across the Gulf Coast. Some severe weather cannot be ruled out but should not be as widespread as the last few days.

USDA Launches Effort to Strengthen Substantiation of Animal-Raising Claims

The Department of Agriculture Wednesday began implementing a multi-step effort to strengthen the substantiation of animal-raising claims. The agency says the effort builds on the work of USDA to protect consumers from false and misleading labels. Agriculture Secretary Tom Vilsack adds, "USDA is taking action today to ensure the integrity of animal-raising claims and level the playing field for producers who are truthfully using these claims." Animal-raising claims, such as "grass-fed" and "free-range," are voluntary marketing claims that highlight certain aspects of how the source animals for meat and poultry products are raised. These claims must be approved by USDA's Food Safety and Inspection Service before they can be included on the labels of meat and poultry products sold to consumers. FSIS will conduct a sampling project to assess antibiotic residues in cattle destined for the "raised without antibiotics" market. FSIS will also issue a revised industry guideline to recommend that companies strengthen the documentation they submit to the agency to substantiate animal-raising claims.

Biden Administration Outlines Strategic Priorities for Wildfires

The Biden administration Wednesday announced guidance to federal agency leaders with wildfire responsibilities outlining their vision and goals for managing wildland fires this year. The guidance comes from a joint memo issued by Agriculture Secretary Tom Vilsack and Secretary of the Interior Deb Haaland. The memo highlights other strategic priorities to reduce wildfire risk, restore ecosystems, engage in post-fire recovery, and make communities more resilient to fire. The memo also references the National Cohesive Wildland Fire Management Strategy as a guide to working with partners to restore and maintain landscapes and help communities become fire adapted. Vilsack says, “We need to better support our firefighters and that’s why President Biden has proposed long-term reforms that will provide permanent pay increases, better housing, better mental and physical health resources, and better work-life balance.” USDA and the Interior Department aim to have more than 17,000 wildland firefighters on board by the end of this year to help support communities increasingly impacted by wildfires.

Midwest Lawmakers Aim to Expand Biofuel Production Opportunities

Midwest lawmakers this week introduced the Sustainable Aviation Fuels Accuracy Act of 2023. The bipartisan legislation would update federal standards to align with the definition of sustainable aviation fuel at the Federal Aviation Administration. The bill would also require agencies to adopt the Greenhouse gases, Regulated Emissions, and Energy use in Technologies, or GREET Model, the most accurate tool for measuring lifecycle emissions. Iowa Republican Senators Chuck Grassley and Joni Ernst introduced the bill along with Deb Fischer from Nebraska, and Democrat Tammy Duckworth of Illinois. Grassley says, “Our bill fixes the problem by requiring the FAA reference the most accurate GREET model for emissions assessments, consistent with many other federal agencies.” The GREET Model was commissioned by the Department of Energy’s Argonne National Laboratory. It considers crops, land uses and carbon reduction practices and is the best available model that recognizes the agriculture industry’s contributions to advancing domestic energy goals.

Legislation Would Bring Whole Milk Access to All Schools

Senator Roger Marshall this week introduced legislation that amends the Richard Russell National School Lunch Act to allow schools participating in the program to serve whole milk. The Dietary Guidelines for Americans reports that nearly 90 percent of Americans do not meet their daily dairy intake recommendations. The Kansas Republican says, "I truly believe food is medicine, and by increasing kids' access to milk, we will help prevent health complications down the road and encourage nutrient-rich diets for years to come." In 2010, Congress passed the Healthy, Hunger-Free Kids Act which amended nutrition standards in the School Lunch Program. Among the changes, the law mandated that flavored milk must be fat-free within the program. In May of 2017, USDA announced a rule that allowed schools to receive waivers for low-fat flavored milk, rather than only fat-free. Leading nutritionists have found that whole dairy fats have no negative effect on a diet, and may even reduce risk of heart disease.

CRP Reaches 22 Million Acres in 2022

USDA’s Economic Research Service reports that in 2022, Conservation Reserve Program acreage rose to 22 million acres. USDA's Conservation Reserve Program was established by Congress in 1985. By 1986, the program began to use contracts to retire highly erodible cropland from crop production for 10–15 years. Enrollment grew quickly, reaching 33 million acres in 1990. After the initial contracts were awarded, program goals expanded to include water quality and wildlife habitat improvements in addition to soil erosion reduction. Between 1990 and 2008, CRP enrollment fluctuated around 33 million acres before falling to a 30-year low in 2021. Annual enrollment caps for eligible land are set at each iteration of the Farm Bill. Earlier this week, Agriculture Secretary Tom Vilsack announced USDA would accept more than one million acres from the signup period this year. Offers for new land in the general signup totaled about 295,000 acres. Producers submitted re-enrollment offers for about 891,000 expiring acres.

USDA Seeks Fiscal Year 2024 Suggestions for Plant Protection Projects

USDA’s Animal and Plant Health Inspection Service seeks input for fiscal year 2024 Plant Protection Act funding to protect American agriculture and natural resources. The open period for submitting suggestions for Plant Pest and Disease Management and Disaster Prevention Program funding runs through August 9, 2023. APHIS will provide $75 million in plant protection funding for the projects, including at least $7.5 million for projects under the National Clean Plant Network. APHIS will set aside up to $4 million in funding to support Tribes, Tribal organizations and universities, as well as other minority-affiliated organizations. Under the Plant Pest and Disease Management and Disaster Prevention Program, APHIS provides funding to its partners to help them safeguard against, detect, and respond to invasive plant pests and diseases. Climate change has increased the level of plant pest infestations and disease infection, allowed pests to produce more generations each year, and extended the suitable habitat for plant pests. To submit suggestions, visit www.aphis.usda.gov.

Thursday Watch List

Markets

USDA's weekly export sales report is set for 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, U.S. retail sales in May and an update of the U.S. Drought Monitor, followed by a report on U.S. industrial production at 8:15 a.m. The U.S. Energy Department's weekly report of natural gas storage will be out at 9:30 a.m. and USDA's Livestock, Dairy and Poultry Outlook comes out at 2 p.m. Traders will continue to keep close track of the latest weather forecasts.

Weather

A front that has remained stalled across the southern tier of the country with active weather continues to be active on Thursday. Clusters of strong to severe storms will again be possible near the Gulf Coast while a more significant severe threat exists in the Southern Plains, including the word derecho. More areas of showers and thunderstorms will spread north through the rest of the Plains and Canadian Prairies, being heavier in Alberta and easing drought concerns there. Some needed showers will go through eastern areas of the Midwest as well.

USDA Enrolls Over One Million Acres in CRP

Ag Secretary Tom Vilsack says that USDA is accepting over one million acres in this year’s Conservation Reserve Program general signup. This is one of several signups that the Farm Service Agency is holding for the program. The results of CRP’s general signup reflect the continued importance of the program as a tool to help producers invest in the long-term health, sustainability, and profitability of their land and resources. Offers for new land in the general signup totaled about 295,000 acres nationwide. Producers submitted re-enrollment offers for about 891,000 expiring acres, reflecting the success of participating in CRP for the long term. The total number of acres will climb when FSA accepts acres from the Grassland CRP signup that closed on May 26. Producers will still need to develop a conservation plan before contracts go into effect on October 1. The number of accepted acres will be confirmed later this year. 

Over $700 Million Available to Expand Rural Internet Access

USDA is making $714 million dollars in grants and loans available to connect thousands of rural residents, farmers, and business owners to reliable high-speed internet. “High-speed internet is a key to prosperity for people who live and work in rural communities,” says USDA Secretary Tom Vilsack. “With this funding, we can ensure that rural communities have the internet connectivity needed to continue expanding the rural economy to make sure it’s a place of opportunity to live, work, and raise a family.” The announcement includes $714 million available for investments in 19 states, including Arizona, Idaho, Kansas, Minnesota, and several others. USDA continues connecting more and more people to high-speed internet in this fourth funding round of the ReConnect Program. The department has invested in a total of 142 ReConnect projects that will bring high-speed internet access to 314,000 rural Americans. More information on rural investment resources is available at rd.usda.gov.

Food Prices Rise Slightly in May

After two straight months of flat food prices, the cost of food increased slightly during May. Overall food prices rose 0.2 percent from April to May. The New York Times says U.S. grocery prices rose 0.1 percent in May, up from April, when prices dropped 0.2 percent. The price of food at restaurants continued climbing, up 0.5 percent during the month. Food prices are rising at a slightly slower rate than they were during recent months but are still much higher than the prices were before COVID-19. Food prices have risen 6.7 percent higher during the past 12 months. After rising 0.5 percent in April, fruit and vegetable prices rose 1.3 percent in May. The index for meats, poultry, fish, and eggs dropped 1.2 percent during May after dropping 0.3 percent in April. The price of eggs dropped almost 14 percent, the largest drop in that index since January 1951.

NCGA Leadership Academy Applications Are Now Open

Applications for the National Corn Growers Association’s Leadership Academy Class are now open. The program is designed to bring together a diverse group of grower-leaders who want to improve their ability to serve their state organizations, enhance their communication skills, and understand the important role of advocacy – all to advance the priorities of the nation’s corn growers and build the next generation of industry leaders. Through the program, NCGA members are empowered to pursue their leadership journey and utilize their skills to inspire others to act. The 2023-2024 class will meet in St. Louis, Missouri from August 7-9, for sessions on leadership, communication, and personal branding. The class then comes together in Washington, D.C., from January 22-24, 2024, for advocacy training. NCGA puts on the program with help from sponsors like UPL and FMC. First launched in 2019, the NCGA Leadership Academy has become the organization’s primary leadership development tool.

Concerns Remain at West Coast Ports

Agricultural exporters are paying close attention to contract negotiations at the nation’s West Coast ports. The Pacific Maritime Association is accusing workers of deliberately slowing down operations. The union says that’s not happening. The association says terminal operations at the Port of Seattle halted over the weekend. Capital Press says International Longshore and Warehouse Union President Willie Adams points out that the West Coast ports are open while negotiations continue. Over 22,000 workers at 29 ports on the West Coast are working without a contract and have done so since July 1, 2022, and  negotiations have lasted 13 months. During the last lengthy negotiations as recently as 2015, farm goods were delayed in getting shipped out. “We aren’t hearing about delays yet,” says Washington Potato Commission director of government affairs Matt Harris. “That doesn’t mean it can’t happen, and it would potentially disrupt the export growth that we’re trying to achieve.”

Soybean Stocks Rise Higher in June

The Economic Research Service issued its June Oil Crops Outlook that predicted higher soybean ending stocks for the month. A higher carryover raised the 2023-2024 U.S. soybean ending stocks forecast by 15 million bushels to 350 million bushels. The increase in expected carryover stocks is due to a reduced 2022-2023 soybean export forecast from 2.01 billion bushels to two billion bushels on strong foreign competition. Despite an unchanged soybean crush volume in June, the higher extraction rates increased U.S. soybean meal supply. With higher supply and lower domestic demand, soybean meal exports for the 2022-2023 marketing year increased this month by 0.2 million short tons to 14 million short tons. The 2023-2024 global soybean ending stocks are estimated higher this month at 123.3 million metric tons on increased carryover from 2022-2023 and reduced crush in Argentina. Reduced soybean meal supplies in Argentina are partially offset by Brazil’s higher soybean meal exports. 

Wednesday Watch List

Markets

The U.S. Labor Department will release its May report of producer prices at 7:30 a.m. CDT Wednesday, followed by weekly energy inventories at 9:30 a.m. from the Energy Department. Many will tune in at 1 p.m. to see if the Federal Reserve raises the federal funds rate target or not, followed by a press conference for Fed Chairman Jerome Powell. The Environmental Protection Agency was supposed to announce final renewable volume obligations for biofuels Wednesday, but postponed the deadline one week to June 21. Weather remains the main attraction for grain traders.

Weather

A disturbance moving along an old frontal boundary will continue to create widespread areas of showers and thunderstorms from the southeastern Plains through the Southeast on Wednesday. Conditions favor some strong thunderstorms with potential for significant severe weather. All hazards are possible out of these storms. Meanwhile, another system is moving into the Canadian Prairies with promises for heavier rain in dry parts of Alberta. The front to that system will move into Montana with scattered showers later in the day.

Farm Credit System Issues Ag Economic and Outlook Report

The Farm Credit Administration board received a quarterly report on economic issues affecting agriculture recently. According to the report, inflation remains elevated in certain sectors of the economy despite interest rate hikes and supply chain improvements. For agriculture, drought has declined substantially across the western half of the country, and good spring weather conditions sped up planting progress for many crops. For several states in the Great Plains and Southwest, drought conditions will need to continue to be monitored. With strong prospects for large crops and the building of grain stocks in 2023, prices have weakened. While many input costs also have fallen, crop producers are likely facing tighter margins this year. Because of rising interest rates and seasonal lending fluctuations, Farm Credit System growth was slower in the first quarter of 2023 than it was for the same quarter the previous three years. The loan portfolio continued to perform well, but nonperforming assets increased. Despite the increase, the overall level of nonperforming assets remained low, at 0.53 percent of loans outstanding and other property owned.

Safe American Food Exports Act Introduced

Lawmakers Monday introduced the Safe American Food Exports Act. The legislation would codify USDA’s role in negotiating regionalization agreements that allow livestock, poultry, and other animal products from unaffected areas of the country to continue to be safely exported in the event of an animal disease outbreak. Although USDA already works with the U.S. Trade Representative to develop the agreements, the legislation explicitly expresses congressional support for establishing regionalization agreements and promoting robust agricultural trade policies before any animal disease impacts the nation. Representative Randy Feenstra, an Iowa Republican, and Jimmy Panetta, A California Democrat, introduced the legislation in the House of Representatives. Feenstra says, “Like every producer fears, foreign animal disease can devastate flocks and herds, preventing our farmers from selling their high-quality product on the global market.” Feenstra says his bill ensures a disease outbreak in one part of the country does not impact other regions' ability to produce and export agricultural goods.

Canada Canola Council Supports Canada Joining USMCA Dispute Settlement

The Canola Council of Canada supports the Government of Canada in joining the dispute settlement consultation with Mexico on agricultural biotechnology. The consultation was initiated by the United States under the U.S.-Mexico-Canada Agreement, and Canada joined today as a third party. There have been challenges to regulatory predictability in Mexico over the last few years, according to Canola Council. Regulatory approaches not grounded in sound science risk stifling access to innovations that farmers need to contribute to food security challenges, address climate-related production issues, and remain competitive and profitable. Canola Council of Canada President Jim Everson says, “It is essential that Canada's trading partners support and implement science-based regulatory systems.” Everson says more formal and substantive assurance is required to provide clarity and certainty about the regulatory approach moving forward. Mexico is a leading and valued market for Canadian canola and is Canada's largest agri-food export to that country, valued at $1.6 billion in 2022.

USDA Welcomes 2023 Tribal College Fellows to Washington, D.C.

The Department of Agriculture Monday welcomed five faculty and staff from tribal colleges and universities and one state land-grant university to learn about USDA. The visitors are learning about research opportunities, programs, and services through The Tribal Fellowship. The program is part of USDA’s commitment to remove barriers to service for tribal nations. The Tribal Fellowship Program is administered by USDA’s Office of Tribal Relations. Agriculture Secretary Tom Vilsack says, "Tribal colleges are anchors in their communities, and these fellowships enhance the collaborations between tribal nations and USDA." The fellows will participate in intensive cross-training with USDA program leaders across the Department to identify areas for collaboration. At a later date, select fellows will spend a week at a USDA Agricultural Research Service research facility to collaborate on research between the tribal colleges and USDA. On their return home, the fellows can share their insights and experiences with students and colleagues in their communities.

Rural Social Connections Draw Healthcare Professionals

The availability of healthcare professionals in rural areas lags that of urban areas, partly because of difficulties in recruiting and retaining healthcare professionals. USDA's Economic Research Service reports that when choosing rural locations to practice, healthcare professionals most often cite social aspects, such as the friendliness of the town, as an important factor in their decision. Similar factors come into play when these professionals choose to stay in their rural small towns. Other factors that reflect the importance of social relationships included being a good place to raise a family, having relatives or friends living nearby, familiarity with the area, the quality of professional contacts, and if the professional's family was settled in the town. Other factors, such as the quality of the medical community, the quality of schools, and opportunities for professional growth, also were cited as important. USDA compiled the data for its Healthcare Professionals Seek Social Connections When Moving to Rural Towns publication.

Demand Pushing Gas Prices Higher

After falling last week, the nation’s average price of gasoline rebounded, rising 5.6 cents from a week ago to $3.57 per gallon. GasBuddy’s Patrick De Haan says, “The good news has continued for average diesel prices, which again fell last week to their lowest since early 2022, helping to relieve some pressure on hard-hit consumers of diesel.” The national average diesel price fell 1.6 cents in the last week and stands at $3.87 per gallon. Diesel prices at the top ten percent of stations in the country average $4.91 per gallon, while the bottom ten percent average $3.17 per gallon. While oil prices had rallied last week on OPEC+’s production cuts announced for 2024 and Saudi Arabia’s July cut of 1 million barrels, markets are still jittery over the potential for more rate hikes amidst stubborn inflation and banking sector challenges. In addition, Goldman Sachs cut its price forecast for crude by nearly ten percent as it sees Russian supply recovering.