Trade Associations Ask EPA to Meet Important November Deadline for E15

Trade associations representing feedstock providers, advanced biofuel producers, and low-carbon fuel customers want EPA to propose and finalize robust 2026 Renewable Fuel Standard volumes by November’s deadline. The groups’ letter to Environmental Protection Agency Administrator Michael Regan highlights the dramatic drop in the value of RFS compliance credits because of EPA’s unreasonably low 2023-2025 volumes. According to the association’s letter, the situation prompted several production facilities to close and now threatens investments in feedstock processing capacity as well as the production of sustainable aviation fuel. “We recognize that sustainable biofuels offer some of the most substantial immediate benefits to deliver carbon reductions,” the letter says. “While we continue to make investments in producing, distributing, and using low-carbon fuels, EPA can and should send a strong signal to the market through a robust RVO.” Groups signing on to the letter include Clean Fuels Alliance, the American Soybean Association, and many others.

Strong Farmland Demand Remains

The agricultural economy has faced some challenges during the past year, with increased interest rates and decreased commodity prices. However, farmers are the eternal optimists. Farmers National Company reports that overall farmland demand remains extraordinarily strong and land values are holding steady in most areas. Troy Swee, Assistant Vice President of Farmers National, says even in the slight downward turn in the ag sector, the company continues to get phone calls and emails from farmers and investors looking to expand their landholdings. “High-quality land continues to sell at a level comparable to the spring of 2023,” he says. “However, lower quality farms and farms with a few blemishes on them have seen a seven to 15 percent reduction in price.” He also predicts that land values will continue holding steady for the first half of 2024, even after getting into early summer, when the sales volume typically begins to shrink.

Global Fertilizer Growth Expected Despite Challenges

Operating costs keep getting higher while commodity prices fall at the same time. Rabobank says this combination has led to a squeeze on farmers’ operating margins, which are now below the average of the past two years, making farmers more cautious about investing in their farms. “Despite these headwinds, the fertilizer sector is showing resilience,” says Bruno Fonseca, senior analyst of farm inputs at Rabobank. “Geopolitical factors, among other issues, could present further obstacles, yet growth in fertilizer use is anticipated to persist.” There are certain fertilizers vulnerable to a decline in demand. Nitrogen fertilizer prices are on a downward trajectory, influenced by diminished demand and falling natural gas prices. The phosphate market experienced a price surge early in 2024 when China shifted its focus to domestic needs, curtailing global exports. Potash is witnessing a robust supply due to increased exports from Belarus and Russia, leading to lower prices.

Milk Checkoff Drives Consumption in Cincinnati

A checkoff-led pilot in Cincinnati schools that offered lactose-free chocolate milk increased consumption and reached students who weren’t drinking milk because of real or perceived lactose intolerance. The National Dairy Council and American Dairy Association Mideast worked with Cincinnati Public Schools to offer the country’s first single-serve lactose-free chocolate milk package to six elementary and four high schools in the fourth quarter of 2023. Because of the program’s success, it was expanded to include all 15 CPS high schools through June of this year. Key findings of the pilot were that when students have the option to choose lactose-free milk, both milk selection and meal participation increase overall. When compared to the rest of the district, the pilot schools experienced a 16-percent increase in milk consumption and a seven percent higher meal participation. Tracy Enslen of ADA Mideast says the pilot proved meeting unmet demand with innovative offerings can drive consumption.

Stakeholders for the SAF Coalition

Forty companies and organizations that hold a stake in the development and deployment of sustainable aviation fuel united to form the Sustainable Aviation Fuel Coalition. The organization is made up of airlines and aircraft operators, agricultural enterprises, aircraft and aircraft equipment manufacturers, airports, technology developers, labor unions, and biofuel producers. The goal of the new nonprofit, nonpartisan coalition is to rapidly scale investment in the SAF sector and advocate for the incentives and policies necessary to promote U.S. economic competitiveness in the emerging SAF marketplace. While SAF Coalition members have been working together informally for years, this newly formed organization will leverage the collective strength of the entire SAF value chain to accelerate the development and deployment of sustainable aviation fuels in the U.S. “The membership of this coalition shows the deep support that the SAF enjoys across aviation’s many stakeholders,” says Alison Graab, the Executive Director for the Coalition.

Lawmakers Want Support for American West Amid Drought

Senators and representatives from Western states called on the Biden administration to make further investments to address long-term drought. “Drought remains a severe risk for American farmers and ranchers and threatens farmland and local economies that rely on dwindling water resources, especially in states West of the 100th Meridian,” the letter says. “We’re asking the administration to bring all resources to bear in helping address the long-term drought and aridification of the Western United States.” The lawmakers applauded the ongoing efforts by the administration to support the American West as it faces a 1,200-year-level drought, including through the Western Water and Working Lands Framework and by opening up Inflation Reduction Act funding. “Investments to comprehensively address the short-term drought recovery and future resilience in the American West must include both smaller-scale on-farm measures and larger-scale upstream watershed restoration and improvements,” the letter adds. “Reliable water is critical to any rural community.”

Tuesday Watch List

Markets

The U.S. Labor Department's employment cost index for the first quarter will be out at 7:30 a.m. CDT. The Federal Reserve begins its two-day FOMC meeting and is expected to keep the federal funds rate target unchanged with an upper limit of 5.50%. Traders continue keeping close watch on the latest weather forecasts in major growing areas.

Weather

Another storm system in the active pattern is moving through the Plains and into the Upper Midwest for Tuesday. Scattered showers and thunderstorms will develop across the middle of the country yet again, with potential for severe weather from eastern Kansas through Iowa. Large hail and damaging winds are the primary threats with these storms.

SAF Climate Model Coming on Tuesday

The University of Illinois Farm Policy News says the Biden administration is expected to release a climate model for its sustainable aviation fuel subsidy program on Tuesday. The rule will dictate how ethanol producers can use climate-smart agriculture to qualify for tax credits in the production of SAF. The ethanol industry views SAF as a way to build demand for its products going forward, as gasoline consumption is expected to decline. A Reuters report says the administration will release a preliminary climate mode for its sustainable aviation fuel subsidy program in the coming weeks that’s more restrictive than what the ethanol industry had expected. The report says it will leave producers with a pathway to the subsidies if they can partner with corn growers that use sustainable farming practices. “To access SAF subsidies, producers must demonstrate that their feedstock is 50 percent lower in emissions than jet fuel,” Reuters says.

Colombia Restricts U.S. Beef Imports Due to HPAI

Colombia has become the first country to restrict U.S. beef imports due to HPAI infections in dairy cattle. The U.S. Meat Export Federation says there is “no scientific basis” for the restrictions. “Columbia is the only country that has officially restricted imports of U.S. beef,” the organization says. “We are encouraged that the vast majority of our trading partners are following the science on the matter.” The U.S. is Colombia’s largest supplier of imported beef, making Columbia’s attempt to suspend beef imports from specific U.S. states is unworkable and misguided. “It’s created uncertainty for Colombian importers and their customers and suppliers,” USMEF says. “This will greatly disrupt trade.” The organization appreciates the efforts of the U.S. government to address Colombian officials’ concerns, and they’re hopeful that the matter can be resolved as soon as possible. The U.S. exported about $40 million in beef and beef products to Colombia last year.

USDA Finalizes Salmonella Policy in Chicken Products

The USDA’s Food Safety and Inspection Service announced its final determination to declare Salmonella an adulterant in raw breaded chicken products when they exceed a specific contamination threshold. The final determination is part of the FSIS’ broader efforts to reduce Salmonella illnesses associated with America’s raw poultry. FSIS will set requirements for other poultry products later in 2024. “The policy will allow us to stop the sale of these products when we find levels of Salmonella contamination that could make people sick,” says Ag Secretary Tom Vilsack. However, the National Chicken Council says the policy will likely cost jobs. “This abrupt shift in longstanding policy has the potential to shutter plants, cost jobs, and take safe food and products off the shelves,” says NCC President Mike Brown. “These changes are designed to reduce outbreaks in a product that’s only been associated with one outbreak in the last nine years.”

Sorghum Crop Graded Number One for Five Straight Years

The U.S. Grains Council released its 2023-2024 Sorghum Quality Report and for the fifth year in a row, U.S. Sorghum was, above average, graded above the requirements for U.S. No. 1 certification. “The Council’s annual sorghum quality report is an extremely important tool for defending our existing export markets and gaining market share in new ones because it shows exactly what to expect from the U.S. product every year,” says Brent Boydston “The report is always well-received by everyone along the sorghum value chain, and the Council is proud to have offered it for the last half-decade and for many years into the future.” The report is funded through the USDA’s Foreign Agricultural Service Agricultural Trade Promotion Program and the United Sorghum Checkoff Program. It provides international customers and other interested parties with accurate information about the 2023-2024 U.S. sorghum crop. Samples were drawn central and southern regions of America.

Texas Ag Commissioner Expresses Gratitude for Help

As Texas continues recovering from the devastating fires in the Panhandle, The Texas Agriculture Department thanks their valued counterparts in other state ag departments around the nation. Departments in states like Alabama, Iowa, and South Carolina have provided unwavering support, prayers, and resources which have been an example of solidarity and compassion. “The outpouring of support from our fellow state agriculture leaders has been moving during this tough time,” says Texas Ag Commissioner Sid Miller. “I’d like to give a Texas-sized thank you to our fellow states for having our backs.” For example, the Alabama Ag Department delivered 27 loads of hay totaling 546 round bales in the Texas Panhandle. The South Carolina Ag Department and in-state partners donated 12 tractor-trailer loads of hay, consisting of 402 bales of hay. “Across our nation, the agriculture community always pulls together when it matters most,” says South Carolina Ag Commissioner Hugh Weathers.

NCBA Statement on Final Traceability Rule

National Cattlemen’s Beef Association President Mark Eisele, a Wyoming rancher, reacted to USDA’s final animal traceability rule. USDA’s final traceability rule updates the existing requirement for animal identification that has been in place since 2013, switching from solely visual tags that are both electronically and visually readable for certain classes of cattle moving interstate. “Many producers are already familiar with using these visual tags and under the new rule, they will instead use electronic tags,” Eisele says. “NCBA worked hard to secure $15 million in funding for producers to reduce the cost of implementing the change.” He also says NCBA remains committed to safeguarding producers’ private data and continuing to reduce the cost of ear tags for farmers and ranchers. To avoid the potential of devastating financial losses during a possible foreign animal disease outbreak and help producers return to commerce, NCBA says America needs an efficient animal disease traceability system.

Top 5 Things to Watch - Sustainable Fuels Ruling, Storms Recovery, Mental Health Lead the Week

1. Planting progress: There have been a lot of spring crops put in the ground between rainstorms -- and it's also been a weekend of wild weather in the heart of the country. On Monday, we'll cover USDA NASS's weekly Crop Progress report, due out at 3 p.m., to get the national and state-by-state perspective as we get ready to roll into May.

2. Stormy weather: From Friday through the weekend, the Plains and Midwest have gone through several rounds of storms and severe weather, including an outbreak of dangerous tornadoes, heavy rain, large hail and high winds. As rural communities and cities cleaned up from the storm damage, there are areas starting the week with flood watches and warnings stretching from Kansas and Missouri down to the Gulf Coast. More rain is likely through the week and weekend. Areas that need rain will welcome the moisture. We'll especially watch Kansas, as drought continues to creep in there. In the Eastern Corn Belt and Delta, where it's been wet, farmer hope to be spared more rainfall. On top of watching planting progress around the storms, we'll keep tracking the potential for severe weather threats.

3. Aviation fuel ruling: We could see a final rule on what products qualify for the sustainable aviation fuel tax credit. Hanging in the balance is how ethanol fairs as such fuel, and a favorable ruling could lift some weight off corn prices.

4. Mental health special issue: This week, Progressive Farmer subscribers will receive the May issue, which features an in-depth package on mental health on the farm and in rural America. We'll look at the unique challenges farmers and ranchers face, from significant stress to limited access to options in rural areas. However, we'll also include the rays of hope -- including useful information to help maintain your mental wellness and how to help others. We'll kick off the coverage of those stories online later in the week.

5. Economic reports this week: Reports start Monday at 10 a.m. with U.S. Grain Inspections. At 2 p.m. we'll see livestock and meat data and the latest poultry production numbers, followed by USDA NASS's weekly Crop Progress report at 3 p.m. Then Tuesday includes 7:30 a.m. release of Employment Cost Index, then 8 a.m. S & P Case-Schiller Home Price Index. At 9 a.m. the latest Consumer Confidence numbers are released followed by 2 p.m. NASS Agricultural Prices report. Wednesday's reports include 7:15 a.m. ADP Employment numbers, 9 a.m. Construction Spending, ISM Manufacturing and Job Openings (JOLTS). At 9:30 a.m. is the EIA Weekly Petroleum numbers, including ethanol. At 1 p.m. the Fed's interest rate decision becomes public, followed by Fed Chair Jerome Powell's press conference at 1:30 p.m. At 2 p.m. we'll see the release of Broiler Hatchery, Fats and Oils, Flour Milling and Grain Crushings reports. Thursday starts with 7:30 a.m. release of Grain Export Sales, Initial Jobless Claims, U.S. Trade Balance and Productivity reports. At 9 a.m. the Factory Orders report hits, and at 10:30 a.m. is the Weekly Economic Index. Friday sees the U.S. Employment and Unemployment and the U.S. Hourly Wages reports at 7:30 a.m. At 2 p.m. is the Consumer Credit numbers, then the 2:30 pm. release of the CFTC's Commitment of Traders report.

Monday Watch List

Markets

Traders will return from the weekend, checking the latest weather forecasts around the globe and any news from the world's hot spots. USDA's report of weekly export inspections will be out at 10 a.m. CDT Monday. NASS's weekly Crop Progress report follows at 3 p.m.

Weather

Another week of busy weather is on tap with a system on Monday bringing scattered showers to portions of the Midwest and Delta. Storm damage and flooding from the weekend will create some delays to planting.

Rabobank released its North American Agribusiness Review

Rabobank released its North American Agribusiness Review, a bi-monthly analysis of market conditions and trends across North American agriculture. Among the highlights, the report says American consumers have proven far more resilient than expected, and they continue analyzing the drivers behind evolving consumption patterns. Grocery sales have started to recover as food inflation has slowed. “Our upstream market expectations are mixed, with continued weakness in some sectors and expected recovery in others,” says RaboResearch head Roland Fumasi. For example, in the beef sector, Rabobank says in early 2024, U.S. beef imports will expand while exports shrink. However, U.S. beef and cattle demand posted early highs this year. In corn, the industry consensus is that farmers will find a way to get planted corn acres up to 91 million as most planting conditions have been favorable. Headwinds against soybeans include higher interest rates and a stronger dollar, which appreciated against several currencies.

AMI Calls for Worker Protections at Beef Facilities

As the USDA issued a nationwide order requiring lactating dairy cows to test negative for HPAI before transport, the American Meat Institute says that properly prepared beef remains safe to eat. The Institute is asking the USDA and Centers for Disease Control and Prevention to provide worker safety guidance specific to beef processors to ensure workers get better protected from infection. “We’re calling on the agencies to issue additional specific guidance to ensure USDA Inspectors and meat company workers stay protected from infection,” says NAMI President and CEO Julie Anna Potts. “We will continue to work with USDA, state and local veterinarians, and our cattle producer partners to both stop the spread of the virus and to ensure beef production continues.” She also commends the USDA and CDC for working overtime to understand the spread of the virus and to determine its effects on the health of people and animals.

NMPF Supports USDA Orders on Lactating Cows

The National Milk Producers Federation supports USDA orders on lactating cows. “Since the virus was first discovered in cows, H5N1 in dairy cattle has been primarily an animal health concern,” says Gregg Doud, President and CEO of the National Milk Producers Federation. “The USDA announcement and actions underscore that concern and focus on the well-being of animals and those who care for them.” USDA, FDA, and scientific research have established what accumulated science has indicated all along: The consumer milk supply is safe. “Pasteurization renders the H5N1 virus, like other viruses, inactive, an important reminder for consumers of its value as a basic safeguard for human health,” Doud says. “That said, the presence of this virus in dairy herds, as well as dairy farmers’ own commitment to animal and human health, makes USDA’s actions on testing and interstate travel appropriate.” Dairy farmers stand ready to ensure healthy animals, workers, and consumers.

Growth Energy Applauds Nebraska SAF Credit

Growth Energy celebrated the significant legislation that will speed investment in Nebraska’s production of sustainable aviation fuel. The bill was signed by Nebraska Governor Jim Pillen and will provide a 75-cent per gallon tax credit for the production of aviation fuel that reduces lifecycle emissions by at least 50 percent. That number is calculated based on the most recent version of the GREET model. “We applaud every one of the biofuel champions in Nebraska who worked hard to advance this exciting legislation,” says Growth Energy CEO Emily Skor. “These incentives promise to propel Nebraska into a leadership position on SAF, which is the single most promising new market for low-carbon biofuels.” She also says with the right incentives and the best available science, as afforded by the Argonne National Laboratory’s GREET model, this approach promises to fast-track investments in low-carbon aviation that will benefit our climate, economy, and rural communities.

USDA Continues Investing in Rural High-Speed Broadband

USDA Deputy Secretary Xochitl (so-CHEEL) Torres Small announced that the agency is partnering with rural cooperatives, local organizations, and tribes to support more high-speed internet deployment in 11 states. USDA is awarding $5.2 million in cooperative agreements through the Broadband Technical Assistance Program, which is funded through the Bipartisan Infrastructure Law. The funding will extend the reach of other high-speed internet programs to meet the goal of connecting every community with affordable, reliable high-speed internet. “Keeping the people of rural America connected with reliable, high-speed internet brings new and innovative ideas to the rest of the country,” Torres Small said during an appearance in Texas. “USDA is partnering with small towns, cooperatives, local utilities, and private companies working to ensure that people, no matter where they live, have access to high-speed internet.” She also says that’s how to grow the economy, not just in rural communities, but across the nation.

Rising Gas Prices May Plateau Soon

After weeks of paying higher prices, those increases at the gas pump may be nearing a halt as refineries complete the transition from winter to summer gas blends. The changing fuel blends come with the changing seasons. Depending on the calendar, gas prices can be more expensive based on the blend drivers choose to use. “As the nationwide changeover to summer gasoline is now behind us, at least one of the three factors that had been actively causing prices to rise in the last couple of months is behind us,” says Patrick DeHaan of GasBuddy. “The largest pain point is refinery maintenance, and that will take a few more weeks to complete.” He also says production output should increase as that work finishes, which will likely put downward pressure on gas prices. Triple A says the distinction between summer and winter fuel is how easily it evaporates based on the temperature.

Friday Watch List

Markets

U.S. personal incomes and consumer spending will be out at 7:30 a.m. CDT Friday, the same time as the PCE inflation index for March. The University of Michigan's final consumer sentiment index for April is due out at 9 a.m. Traders will continue to keep a close watch over the latest weather forecasts.

Weather

A storm system in the Central Plains will move northeast into the Upper Midwest on Friday. Widespread areas of rain and thunderstorms developed Thursday night and will continue in waves through Friday as well. Some of those thunderstorms will be severe throughout the day with the emphasis in the mid-Missouri Valley for the strongest storms Friday afternoon and evening.

USDA Requires H5N1 Testing for Interstate Movement of Dairy Cattle

The Department of Agriculture Wednesday mandated testing for H5N1 of dairy cattle that cross state lines. The move is to protect the U.S. livestock industry from the threat of avian influenza. Before interstate movement, dairy cattle are required to receive a negative test for Influenza A virus at an approved National Animal Health Laboratory Network laboratory. Owners of herds in which dairy cattle test positive for interstate movement will be required to provide epidemiological information, including animal movement tracing. USDA has identified spread between cows within the same herd, spread from cows to poultry, spread between dairies associated with cattle movements, and cows without clinical signs that have tested positive. On April 16, APHIS microbiologists identified a shift in an H5N1 sample from a cow in Kansas that could indicate that the virus has an adaptation to mammals. USDA has not found changes to the virus that would make it more transmissible to humans and between people.

FDA Reaffirms Pasteurization is Effective against HPAI

The Food and Drug Administration confirmed again this week pasteurization of milk consistent with the federal Grade "A" Pasteurized Milk Ordinance destroys harmful pathogenic bacteria and other microorganisms, including Highly Pathogenic Avian Influenza. The data cited by the FDA is consistent with other studies demonstrating that the legally required temperature and time for milk pasteurization will readily inactivate HPAI. Viral fragments detected after pasteurization are nothing more than evidence that the virus is dead and have zero impact on human health. Further, federal rules prohibit milk from sick cows from entering the food supply chain. The National Milk Producers Federation and International Dairy Foods Association encourage the FDA to continue to gather scientific data and information that is consistent with its plans. The FDA has also remained consistent in its vigilance against raw milk consumption. Raw milk is a key vehicle in the transmission of human pathogens. As this situation continues to evolve, the dairy organizations strongly discourage the consumption of raw milk.

Vilsack Announces New School Meal Standards

Agriculture Secretary Tom Vilsack Wednesday announced major steps to promote the health of America's children through school meals. Nutrition standards for school meals will be gradually updated to include less sugar and flexibility with menu planning between Fall 2025 and Fall 2027. The Department arrived at these changes after listening closely to public feedback and considering the latest science-based recommendations from the Dietary Guidelines for Americans. The new rule continues the work of the Biden Administration to address both food and nutrition security. Vilsack says, “When we raise the bar for school meals, it empowers our kids to achieve greater success inside and outside of the classroom.” For the first time, added sugars will be limited in school meals nationwide. Schools can continue offering flavored and unflavored milk, which provides essential nutrients children need, such as calcium, vitamin D and potassium. Current nutrition standards for whole grains will not change.

Crop Insurance Payments to Farmers Vary by Farm Type

About 13 percent of U.S. farms participated in Federal crop insurance programs in 2022, with the highest share from small family farms. USDA’s Economic Research Service reports small family farms accounted for 54 percent of the participants in Federal crop insurance programs and received 12 percent of the insurance payments. Small family farms harvested 26 percent of all cropland acres. Midsize and large-scale family farm operators accounted for a slightly lower proportion of Federal crop insurance participants, 42 percent, but harvested most of the U.S. cropland acres, 67 percent, and received 80 percent of payments from Federal crop insurance. Larger farms like these account for 46 percent of agricultural acres operated in 2022. Researchers with USDA's Economic Research Service examined survey data and found that participation rates varied widely across commodity production. In 2022, 62 percent of farms producing row crops purchased Federal crop insurance, while nine percent of farms growing specialty crops, such as fruits, vegetables, and nursery crops, did the same.

USDA Urging South Texas to Protect Citrus from Invasive Pests

South Texas citrus is under attack and USDA's Animal and Plant Health Inspection Service (APHIS) is asking residents for their help. Texas citrus in the Lower Rio Grande Valley is at risk of being infested by invasive and damaging fruit flies. APHIS and the Texas Department of Agriculture are inspecting and surveying fruit trees in residential yards and commercial properties to check for signs of invasive plant pests and to protect the food supply and agricultural economy. Residents can help by cooperating with surveys and taking steps to keep invasive fruit flies off their backyard fruit. The main threat this season is an invasive fruit fly that is native to Mexico and Central America. While this fruit fly is harmless to people and pets, it feeds on more than 40 kinds of fruits and vegetables. Invasive fruit fly larvae, more commonly known as maggots, can infest homegrown fruit, mature into adult flies, and then fly into commercial areas and spoil new harvests.

NCBA Offers Fall Semester Internships

The National Cattlemen’s Beef Association seeks applications for fall internships. The programs include a public policy internship and a meetings and events internship. The public policy internship, based in Washington, D.C., is held in conjunction with the Public Lands Council and gives students an opportunity to learn about government relations and advocacy on behalf of the cattle industry. The meetings and events internship, based in Denver, Colorado, provides students with the chance to learn about managing large events like NCBA’s annual convention and summer business meeting. NCBA Vice President Gene Copenhaver says, “Interning at NCBA is a great way to start your career and the work you do will have a positive impact on America’s hardworking farmers and ranchers.” Both internship applications are now open and available on the careers page of ncba.org. Internships begin in August 2024 and end in December 2024. Applications are due by May 31, 2024. Learn more online at beef.org.

Thursday Watch List

Markets

USDA's weekly export sales will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, and updates of first-quarter U.S. GDP and the U.S. Drought Monitor. U.S. pending homes sales in March are set for 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m.

Weather

A stalled front and a system approaching from the West will increase showers and thunderstorms across the Plains on Thursday. Severe weather will be a risk from Nebraska southward with all hazards on the table. Background winds will likely be breezy as well. Frosty morning temperatures in the Midwest will quickly rise Thursday morning.

Pipe Supplier Sues Summit Carbon Solutions

An Arkansas pipe manufacturer is suing Summit Carbon Solutions for 15 million dollars. Summit wants to build a carbon dioxide pipeline system in multiple Midwestern states, including Iowa. The lawsuit, filed by Welspun Tubular, says Summit hired the company to produce 785 miles of pipe starting in May 2023 at a cost of $183 million. However, Summit’s pipeline network is scheduled to cover 2,500 miles in five states but has taken longer than expected to get approval. Summit says construction may begin in early 2025. An agreement allowed Summit to delay pipe production for up to six months until November 2023. Welspun notified Summit it would proceed with pipeline production in February, but Summit eventually canceled the agreement. The Nebraska Examiner says state regulators in North and South Dakota rejected the company’s initial pipeline routes. The Iowa Utilities Board is poised to decide whether to issue the company a permit.  

Drone Operators Urged to Give Right of Way

The U.S agricultural industry is entering the growing season, which means things will get busy. The National Agricultural Aviation Association is asking all uncrewed aircraft system (UAS) operators (or drones) to be mindful of low-altitude crewed or manned agricultural aircraft operations. Agricultural vehicles treat 127 million acres of cropland in the U.S. each year to help farmers increase productivity and protect their crops, in addition to pastureland, rangeland, and forestry. UAS are not allowed above 400 feet without a waiver from the Federal Aviation Administration, and manned agricultural aircraft fly as low as ten feet off the ground when making an application. This means they share the low-altitude space with many drones. “With the growing number of uncrewed aircraft operations over the last few years, it’s critical for their operators to be aware of low-flying, manned agricultural aircraft,” says Andrew Moore, chief executive officer of the National Ag Aviation Association.

Investing in Clean Energy and Domestic Biofuels

The USDA is funding more than 700 clean energy projects to help lower energy bills, expand access to domestic biofuels, create new jobs, and find new market opportunities for farmers and ranchers. Deputy Secretary Xochitl (so-CHEEL) Torres Small announced more than $238 million in loans and grants available through the Rural Energy for America Program and the Higher Blends Infrastructure Incentive Program. “As we celebrated Earth Day, we’re excited to partner with hundreds more family farms and small businesses to address the impacts of climate change, grow the economy, and keep rural communities throughout the country strong and resilient,” Torres Small says. $194 million in loans and grants will be available through the REAP program to support projects in 35 states and Puerto Rico.  USDA is also investing $43 million in grants through the HBIIP to business owners that will help increase the availability of domestic biofuels in 15 states. 

Farmers Oppose Sale of Iowa Fertilizer Plant

The University of Illinois Farm Policy News says Iowa farmers told officials that they should block the sale of the Iowa Fertilizer Company to Koch Industries. The sale is worth 3.6 billion dollars. Farmers attending the Iowa Farmers Union’s listening session told Lina Khan, the Federal Trade Commission Chair, that consolidation is already squeezing their slim profit margins. The plant located in southeast Iowa received approximately $45 million in local, state, and federal economic development incentives and tax benefits over a decade ago to encourage the plant’s construction. Farmers point out that the acquisition would be the latest in a series of mergers and consolidations that have limited the number of companies they can purchase farm supplies and equipment from and sell livestock and crops. Four companies account for 75 percent of the nation’s supply of nitrogen. Khan didn’t say whether the FTC is investigating the Iowa Fertilizer Company sale.

March Milk Production Drops Almost One Percent

Milk production in the 24 major states during March totaled 18.8 billion pounds, down 0.9 percent from March 2023. February revised production, at 17.4 billion pounds, was up 2.9 percent from February 2023. The February revision represented an increase of about 82 million pounds, or 0.5 percent, from last month’s preliminary production estimate. Adjusting the February production for the additional day due to the leap year causes February’s revised production to be down 0.7 percent on a per-day basis. Production per cow in the major states averaged 2,115 pounds for March, three pounds below March 2023. The number of milk cows on farms in the 24 major states was 8.88 million head, 71,000 less than in March 2023, and 7,000 head less than February 2024. Milk production during the January-March quarter totaled 56.9 billion pounds, up 0.1 percent from 2023. The average number of milk cows during the quarter totaled 9.33 million head.

Weekly Corn Export Inspections Improve

USDA data shows inspections of corn for overseas delivery rose week to week while bean and wheat assessments declined during the week ending on April 18. The agency report says export inspections of corn rose to 1.62 million metric tons, up from 1.35 million tons the previous week. That’s well above the 938,000 tons assessed during the same week last year. Examinations of soybeans for offshore delivery declined to 435,000 tons from more than 446,000 a week earlier. However, that number was up from the 380,000 tons inspected a year ago. USDA says wheat inspections were reported at 450,275 tons, down from just over 620,000 tons the previous week. Since the start of the marketing year, the agency has inspected 30.3 million metric tons of corn for delivery, up from 22.4 million last year. Soybean assessments now total 38.5 million tons, while wheat inspections are now at 16.4 million tons.

Wednesday Watch List

Markets

A report on U.S. durable goods orders in March is set for 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m. USDA's monthly cold storage report will be out at 2 p.m. Traders are keeping close watch on weather conditions around numerous global crop regions.

Weather

A stalled front in the southern half of the Plains will be the focus for some showers and thunderstorms on Wednesday, the precursor to some more active weather the region will see over the next couple of weeks. Across the Midwest, that front has brought in a round of colder air, which led to some frosts Wednesday morning and probably more widespread cold for Thursday morning.

25 States Sue EPA Over Vehicle Emissions

Attorneys from 25 states sued the Environmental Protection Agency last week to block rules intended to reduce emissions from cars and light trucks and encourage electric vehicle manufacturing. The group of attorneys general says the agency exceeded its authority. The lawsuit is challenging the regulations for passenger vehicles, finalized on March 20 by the Biden administration. The group of states was led in the filing by Kentucky and West Virginia. Kentucky Attorney General Russell Coleman says the rules would harm the American economy, threaten jobs, and raise prices while undermining the U.S. electrical grid. Coleman also says there is very little interest in electric vehicles in his state. “The administration is willing to sacrifice the American auto industry and its workers in service of its radical green agenda,” Coleman says. “We aren’t buying it.” EPA chief Michael Regan says the rule imposes “absolutely no mandate” on manufacturers to adopt electric vehicles.

Fed Releases April Beige Book

The Federal Reserve Board released its April Beige Book last week. It summarizes current economic conditions and includes observations on the agricultural economy. In Atlanta’s Sixth District, agricultural conditions showed improvement in recent weeks, with continued resilience in the cattle market and strong dairy demand. In the Seventh District of Chicago, fieldwork in preparation for planting was well ahead of the usual pace given warmer-than-normal temps. In the Eighth District of St. Louis, total acres planted at the end of March were similar to last year, but there are concerns about wet weather in multiple states. In Minneapolis’s Ninth District, warm weather and widespread mild drought conditions led to a mixed outlook going into planting. In the Eleventh District of Dallas, drought remained prevalent in West Texas and Southern New Mexico. In the Twelfth District around San Francisco, rainfall provided much-needed water for crops but did cause some flooding.

Trade Mission Underway in India

Alexis Taylor, USDA Undersecretary for Trade and Foreign Agricultural Affairs, arrived in New Delhi, India this week to launch a USDA-sponsored agribusiness trade mission. Taylor leads a delegation of officials from 47 agribusinesses and farm organizations and 11 state departments of agriculture. All are seeking to develop and expand business opportunities with importers in India. “As the world’s most populous country and fifth-largest economy, India is primed for continued growth as a top destination for U.S. food and agriculture products,” says Taylor. “With a growing middle class that’s expected to exceed 660 million by 2030, India presents a strong consumer-oriented market where exports from American agribusinesses and producers can flourish.” Participants representing a diverse array of American food and agricultural products get the chance to reinvigorate existing relationships and forge new connections with local importers. The U.S. and India have a long history of agricultural trade and an enhanced bilateral relationship.

FARM Program Celebrates Dairy Conservation Efforts

The National Dairy Farmers Assuring Responsible Management (FARM) Program released findings from its Conservation Practice Questionnaire highlighting the leading stewardship of dairy farmers. The findings were released as FARM and the National Milk Producers Federation observed Earth Day. The questionnaire, a voluntary addition to the FARM Environmental Stewardship (ES) Program, highlights some of U.S. dairy farmers’ conservation efforts, including practices and technologies that show effective water, energy, and other resource stewardship. As of this month, the questionnaires show that 79 percent of dairy farmers reuse or recycle water on their farms. Ninety percent of participating farms report implementing field conservation practices. Also, 68 percent of farmers use recycled manure, recycled sand, or byproducts as bedding for their cows. More than 97 percent of participating dairy farmers use energy-saving technologies and practices. To further support dairy farmers’ efforts to implement conservation practices and technologies, FARM launched a searchable database of resources.

One Billion for Emergency Food Aid

The USDA and the U.S. Agency for International Development will deploy $1 billion in Commodity Credit Corporation funding to buy U.S. commodities to provide emergency food assistance around the world. “America’s farmers are the most productive and efficient in the world, and we rely on them to supply safe and nutritious food not only to our nation but to the global community,” says USDA Secretary Tom Vilsack. “The U.S. produces more commodities than we can consume, so we have the opportunity to partner with USAID and extend this food to those in our global community who are struggling.” An initial $950 million will support the purchase, shipment, and distribution of U.S. wheat, rice, sorghum, lentils, chickpeas, dry peas, vegetable oil, cornmeal, navy beans, pinto beans, and kidney beans. These are commodities that align with traditional USAID international food assistance programming. USAID has selected 18 countries for the initial round of support.

Cattle on Feed Up One Percent on April 1

USDA data shows the number of cattle on feed at the start of this month rose one percent year-over-year. Cattle and calves on feed for slaughter in feedlots with a capacity of 1,000 or more rose to 11.8 million head in the week through April 1. An agency report says inventories included 7.27 million steers and calves, a two percent increase, and 4.56 million heifers and heifer calves, a one percent increase from the same point last year. March placements, meanwhile, plunged 12 percent to 1.75 million head. Net placements totaled 1.69 million head. 330,000 head of cattle weighing less than 600 pounds were placed in feedlots. Cattle between 600 and 699 pounds totaled 260,000 head. Around 460,000 head weighing between 700 and 799 pounds were placed, as were 466,000 head weighing 800 to 899 pounds. Marketings of fed cattle also dropped in March, falling 14 percent to 1.71 million head.

Tuesday Watch List

Markets

Traders have several points of weather attention to monitor, including the U.S., South America, Europe and southwestern Russia. A report on March U.S. new home sales will be out at 9:00 a.m. CDT and is the only significant report of the day.

Weather

A small storm system is moving through the Midwest on Tuesday and should bring scattered showers to the region. Some isolated showers may develop along the cold front across the Southern Plains as well. Temperatures will fall again behind the front, leaving some frosty conditions for Wednesday and Thursday mornings in the Midwest.

EPA Issues Waiver for E15 Sales

The Environmental Protection Agency is issuing an emergency fuel waiver to allow E15 gasoline to be sold during the summer driving season. The agency says the move will provide communities with relief at the pump from ongoing market supply issues created by the ongoing Ukraine war and conflict in the Middle East by increasing the fuel supply and offering a variety of fuel blends that consumers can choose from. “EPA is taking action to ensure that American consumers have more choices at the pump,” says Administrator Michael Regan. “Allowing E15 sales during the summer driving season will increase fuel supply while supporting American farmers, strengthening our nation’s energy security, and providing relief to drivers across the country.” Current estimates indicate that on average, E15 is about 25 cents a gallon cheaper than E10. The Clean Air Act allows the EPA administrator to temporarily waive certain fuel requirements to address shortages.  

Corn Growers Applaud EPA Decision on E15

The Environmental Protection Agency used its authority to prevent drivers from losing access to lower-cost and lower-emission E15, a higher ethanol blend marketed as Unleaded 88. The National Corn Growers, who have advocated for the move, applauded the decision. “This waiver is good news for corn growers and those in rural America who will benefit economically from this decision and for consumers who will save money at the pump during a busy travel season,” says NCGA President Harold Wolle. “We deeply appreciate the EPA, the administration, and our congressional allies for all their work on this issue.” Under current policy, E15 cannot be sold at terminals beginning on May 1 and at retail stations starting on June 1. NCGA is working with allies, including the petroleum industry, on federal legislation that would provide permanent, year-round access to E15. Higher ethanol blends help significantly cut greenhouse gas emissions and fuel prices.

Cattle Producers Wrap Up in Washington, D.C.

The National Cattlemen’s Beef Association finished a successful Legislative Conference in Washington, D.C. The three-day event brought in cattle producers from across the country to Washington to meet with federal agencies and their elected members of Congress. “The conference was a great opportunity to meet with our representatives and discuss issues with agencies like USDA, EPA, and the Fish and Wildlife Service,” says NCBA President Mark Eisele. “I’m thankful for the NCBA team’s work they do every day in D.C., and meetings like this are so valuable for showing policymakers how the decisions they make in Washington impact our farms and ranches thousands of miles away.” This year, 300 cattle producers traveled to Washington and participated in 170 meetings on Capitol Hill. During the three-day event, NCBA members discussed their priorities for the next farm bill, including the need for animal health, disaster relief, risk management, and voluntary conservation programs. 

USDA Accepting Application for Colombia Trade Mission

USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an agribusiness trade mission to Colombia on August 13-15. USDA is now accepting applications from current and potential U.S. exporters who have interest in joining the delegation. “Colombia represents a top-tier food and agricultural destination for American farmers, ranchers, and processors,” says Taylor. “As the second-most populous country in South America, Colombia enjoys highly favorable demographics coupled with 20 years of continuous economic growth,” she says. Colombia is the largest South American market for U.S. agricultural products and the seventh-largest market for U.S. food and beverage exports globally. Since the U.S.-Colombia Trade Promotion Agreement was implemented in 2012, U.S. ag exports to Colombia have grown 237 percent, reaching a record $3.7 billion in 2023. Export opportunities to Colombia include healthy foods, fresh fruit, meat and meat products, beans, seafood, dairy products, and more. For more information, go to fas.usda.gov.

Volatile Weather Possible in Early May

AccuWeather forecasters say the spring severe weather season may quickly shift into high gear with favorable tornado conditions in the final days of April and through the first two weeks of May. “It’s the time of the year when you don’t have to wait long for one severe weather outbreak to give way to another one,” says Long Range Forecaster Joe Lundberg of AccuWeather. “Springtime is a severe weather time of year, and we expect that this May will be no exception.” A cold front will move across the Midwest, Ohio Valley, and the Northeast starting on April 23. It will stall out across the South-Central Plains and the northern Gulf states by April 25 and 26. Showers and thunderstorms can develop along the front in the Central Plains. “A strong, slow-moving storm will rotate through the southern Rockies and into the Plains in late April,” says Paul Pastelok of AccuWeather.  

BLM Rule Threatens Multiple Use of Public Lands

The National Cattlemen’s Beef Association and Public Lands Council expressed concerns with a new rule from the Bureau of Land Management. The BLM’s final “Conservation and Landscape Health” rule reimagines the agency’s requirements to manage lands for multiple uses, including grazing. “Ranchers have always and will always be serious partners in conservation and sensible land management, but after a year of feedback from agricultural organizations and local stakeholders, BLM has decided to move forward with the most concerning parts of this proposal,” says NCBA President Mark Eisele. “It is incredibly concerning that this rule makes serious additions to the land leasing structure for federal lands without authorization or direction from Congress.” The final rule runs counter to the agency’s multiple-use mandate under the Federal Land Policy and Management Act of 1976. NCBA and PLC fear the rule will open the door for grazing to get removed from federal rangelands entirely.

Top 5 Things to Watch - Active Weather, What's New in Land Trends

1. Land trends: We continue our tracking of latest land trends with the start of a series featuring data from a new information partner. Watch as we kick off that land feature, with more information on the background of it, this week.

2. More active precipitation systems: Colder air moving through the weekend and early in the week brings some frost and freeze warning dangers, as well as sparking general precipitation across the South and parts of the Midwest. This and previous systems are easing drought conditions in many areas, a welcome tradeoff for some planting delays. There's especially good signs of rain moving through the Southwest and into the Plains states.

3. View From The Cab introductions: One of most popular long-term series, View From the Cab, kicks off this week with introductions of our featured farmers from Idaho and Kentucky. We're in our 20th year of this series, which each week tracks the activities and thoughts of a pair of farm families as they work through the crop season.

4. Podcast conversations: Our weekly Field Posts podcast series continues with comments around the latest Cattle on Feed reports, as well as existing episodes featuring farmer entrepreneurs and our take on recent grain market reports. 

5. Economic reports this Week: Monday, USDA's weekly export inspection numbers are out at 10 a.m. Then USDA NASS's weekly Crop Progress report is at 3 p.m., followed by our analysis. Tuesday sees March U.S. new home sales report at 9 a.m. On Wednesday, the U.S. durable goods orders in March is set for 7:30 a.m., followed by the Energy Department's weekly inventory report at 9:30 a.m. USDA's monthly cold storage report will be out at 2 p.m. Then Thursday starts with USDA's weekly export sales at 7:30 a.m., the same time as weekly U.S. jobless claims and as updates of first-quarter U.S. GDP and the U.S. Drought Monitor. U.S. pending homes sales in March are set for 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Friday we'll watch for U.S. personal incomes and consumer spending at 7:30 a.m., the same time as the PCE inflation index for March. The University of Michigan's final consumer sentiment index for April is due out at 9 a.m.

Monday Watch List

Markets

After Israel fired a missile at Iran on Thursday evening, you can bet traders will be monitoring any new developments over the weekend as well as checking weather forecasts around the world. USDA's report of weekly export inspections is at 10 a.m. CDT Monday. NASS's weekly Crop Progress report is at 3 p.m.

Weather

Chilly air brought some frosts to the Midwest Monday morning. A small system will work across the northern tier with isolated showers across the Canadian Prairies, Northern Plains, and Upper Midwest. Winds will be a bit breezy in these areas as well. Otherwise, it will be a rather quiet day in most areas and should be a good one to get out and do some fieldwork where soil conditions allow.

Groups Ask ITC to Kill Possible Herbicide Duties

Six of the nation’s major commodity groups sent a letter to the U.S. International Trade Commission today encouraging it to vote no in advancing a petition from Corteva Agribusiness. The petition asks ITC to place antidumping and countervailing duties on imports of the herbicide 2-4D shipped from India and China. The letter says if the case continues beyond the preliminary stage, farmers across the country could soon find it difficult to access critical supplies. “Corteva is the only U.S. supplier of 2-4D,” the letter says. “To put it simply, America’s farmers cannot rely on a sole domestic supplier of 2-4D to meet nearly all of the market’s needs, which cannot fully be met without imports.” Duties on 2-4D imports from the two countries would intensify an already difficult period for many growers as key input costs continue to rise. The USDA is projecting record-high farm production cash expenses for 2024.

CNH Industry Moving Jobs to Mexico

CNH Industrial plans to lay off over 200 employees at its Racine (RAY-seen), Wisconsin facility and shift that work to Mexico. That’s according to a statement from Wisconsin Senator Tammy Baldwin. CNH Industrial, a manufacturer of agricultural equipment, intends to reduce costs by $150 million as part of a company-wide reorganization. “Agricultural machinery has been made in Racine for over 175 years and made Case-New Holland into an international manufacturing powerhouse,” Baldwin wrote in a letter to Scott Wine, CEO of CNH Industrial. “Moving production to Mexico is a slap in the face to the workers who have given so much, and it would destroy the institutional knowledge that your workforce has developed over decades.” Over 1,000 United Auto Workers members ratified a new contract with CNH in January 2023 after a strike lasted over 260 days. Baldwin questioned if this round of layoffs was “retribution” following the UAW strike.  

USDA Announces New Financial Access Tools and Resources

The USDA has a new Livestock Indemnity Program Decision Tool and farm loan resources available to agricultural producers who help other producers access USDA disaster assistance and farm loan programs. The new LIP tool and the farm loan informational video resources were developed in partnership between FarmRaise and USDA’s Farm Service Agency. “By providing a collaborative outreach and technical assistance to the agricultural community, the FSA’s partnerships with organizations like FarmRaise increase the awareness of and the broader participation in our extensive suite of farm and farm loan programs,” says FSA Administrator Zach Ducheneaux. “Offering innovative tools and resources with help from our cooperators breaks down program delivery barriers ensuring equitable access to our programs for millions of rural, urban, and small-scale to mid-sized producers.” The LIP Decision Tool helps producers who suffered losses, while the optional decision tool gives the producers guidance on needed documentation. For information, go to farmraise.com/usda-fsa.

Bright Forecast Ahead for U.S. Sugar Industry

The University of Missouri’s Food and Agricultural Policy Research Institute recently released its outlook for U.S. agriculture. They project that American sugar production remains strong and is expected to grow despite challenges seen over the past couple of years. Those challenges include factory closures in Montana and Texas. “Despite the new and existing challenges, the forecast is bright for American sugar production as long as the farmers’ safety net is strengthened,” says Dr. Rob Johansson, director of economics and policy analysis at the American Sugar Alliance. Most of America’s sugarbeet growers are planting their crops, while California’s growers have started their harvest. Sugarcane producers in southern states are finishing their harvest. USDA is forecasting a near-record 9.2 million tons of sugar will be produced in the U.S. this year, meeting about 74 percent of U.S. demand with domestically-produced supplies. That would make America the fifth-largest sugar producer in the world.

Nunn Introduces Year-Round E15 Bill

Iowa Third District Congressman Zach Nunn introduced the Year-Round E15 Act that would allow the eight states that’ll have year-round E15 in 2025 to have it this year too. “Let me be clear,” Nunn says on his website. “This bill wouldn’t be necessary if the Administration had done the right thing to begin with, but it’s needed to provide certainty for farmers, producers, and the families who benefit from less expensive fuel.” Nunn also says biofuels support 57,000 jobs in his home state of Iowa, which reduces pump prices and decreases greenhouse emissions by roughly 50 percent. The bill would extend the Reid Vapor Pressure volatility waiver to ethanol blends above 10 percent to allow for year-round E15 sales in Iowa, Illinois, Missouri, Minnesota, Nebraska, Ohio, South Dakota, and Wisconsin. Don Bacon and Adrian Smith of Nebraska, Nikki Budzinski and Eric Sorenson of Illinois, and Minnesota’s Brad Finstad are co-sponsors.

USDA Settles Packers and Stockyards Case

The USDA entered into a stipulation agreement with Dennis Kolb Dairy Sales of Pennsylvania on February 13 for alleged violations of the Packers and Stockyards Act. Under the agreement terms, Dennis Kolb Dairy Sales waived the right to a hearing and paid a civil penalty of $12,600. An investigation by the Agricultural Marketing Service revealed between March 2023 and July 2023, the company failed to pay timely on 18 livestock purchases totaling over $96,300. Payments were up to 40 days late. The P&S Act requires subject entities to issue the full payment for livestock by the close of the first business day following the purchase and transfer of possession. Failure to pay for livestock purchases in a timely manner is a violation of the P&S Act. The Act authorizes the Ag Secretary to assess civil penalties of up to $33,896 per violation against anyone after notice and a hearing opportunity.

Friday Watch List

Markets

The University of Michigan's consumer sentiment index for April is due out at 9 a.m. CDT Friday. USDA's Cattle on Feed report for April 1 is set for 2 p.m. with 11.844 million head expected to be found on feed, up 2% from a year ago. Traders continue to monitor weather forecasts and events in the Middle East.

Weather

A strong cold front is moving through southern and eastern areas of the U.S. on Friday. Some showers and thunderstorms are possible along the front. Behind the front, cold air continues to pour into the country, which will create widespread frosts and freezes across much of the Plains and Midwest through the weekend.

Report Shows Ransomware Attacks in Ag Industry

The Food and Agriculture – Information Sharing and Analysis Center released its first annual report on ransomware incidents in the U.S. food and agriculture sector. The report shows that while there were fewer ransomware incidents in the industry than other sectors, ransomware actors have shown a level of sophistication and understanding of sector victims. The Food and AG-ISAC found 167 ransomware attacks against the sector out of 2,905 total ransomware incidents studied in 2023, which was 5.5 percent of all attacks. Ransomware hackers use malicious code to encrypt critical data so an organization cannot access files, databases, or applications, rendering systems unusable unless the victim pays a ransom. “Ransomware remains a serious threat to all business sectors, including the food and ag industry,” says Jonathan Braley, Director of the Food and Ag-ISAC. “Despite several hacker disruptions by law enforcement, cyber attackers often operate in countries that turn a blind eye to their efforts.”

AFBF to USDA: Restore NASS Surveys

The American Farm Bureau urged USDA to reverse its decision to cancel livestock and crop surveys that are crucial to the success of America’s farmers and ranchers. The National Agricultural Statistics Service recently announced it would no longer provide a July cattle inventory survey, as well as county-level estimates for crops and livestock and the objective yield survey for cotton. Farm Bureau President Zippy Duvall sent a letter to USDA emphasizing the importance of the surveys, particularly the July cattle report. “NASS’s two reports regarding the total U.S. cattle inventory, published in January and July, give farmers, ranchers, researchers, and other data users a full picture of supplies in the U.S. cattle sector at the beginning and in the middle of each year,” he says. “This allows for a fair assessment of the cattle market for the next six months.” Eliminating the mid-year report will put the market in the dark.

Land O’ Lakes CEO in TIME’s Top 100 List

TIME names Beth Ford, Land O’ Lakes president and CEO, to the 2024 TIME 100, its annual list of the 100 most influential people in the world. The list recognizes the impact, innovation, and achievement of the world’s most influential individuals. “I’m honored to be mentioned among this impressive group of people,” Ford says. “Our farmers, cooperatives, and ag retailers carry the most risk in the food system.” She also says without investment in rural America, including its communities, businesses, and families, the interconnected global food chain is vulnerable. “We all owe so much to the grit, determination, and resilience of the people who feed us all,” she adds. Ford has held senior positions in seven companies in six industries. She leads by not only addressing and delivering financial performance but also by addressing the important global issues and structural changes that can improve areas directly impacted by food and agriculture.

Hormel Settles Price-Fixing Litigation

Hormel Foods is the latest U.S. pork producer to reach a settlement in the ongoing allegations of a price-fixing conspiracy in the meat industry. In the first settlement round, Hormel will pay $2.43 million to the commercial indirect purchaser class in the case. “Meat and Poultry” says court documents reveal this is the third settlement between commercial and institutional indirect purchasers following earlier settlements with JBS and Smithfield Foods. The monetary relief in the case is now up to more than $57 million. The price-fixing litigation dates back to 2018. The allegations were consolidated and transferred to a Minnesota district judge in December 2022. Seaboards Foods LLC previously reached a settlement with plaintiffs in which it agreed to pay almost $10 million. Plaintiffs previously alleged that a group of pork processors who control 80 percent of the pork market manipulated the market in an attempt to keep a ceiling on prices.

House Ag Committee Plans Farm Bill Markup by Memorial Day

House Ag Committee Chair Glenn Thompson says his committee will “without a doubt” mark up a farm bill before Memorial Day on May 27. After repeated delays in the farm bill process, Successful Farming reports that Republicans on the Senate Ag committee plan to release a farm bill framework shortly after the House panel takes action. However, Senate Ag Chair Debbie Stabenow says the Senate hasn’t set a specific timeline to move the bill. A farm bill is six months overdue. Legislators say they’re working hard to pass a farm bill this year despite impasses on crop subsidies, climate, and SNAP cuts. “We’ll move on the bill when I know we can get it done,” Stabenow says. “I do see a path to doing that.” Thompson’s package will get released before the committee vote and will offer a robust farm safety net that’s strengthened with money drawn from a USDA reserve.

USDA Helps Increase Healthy Food Access

USDA Deputy Secretary Xochitl (so-CHEEL) Torres Small announced that the agency is partnering with Reinvestment Fund to help improve access to healthy foods in underserved communities. The partnership will help strengthen local food financing programs. “No matter where you live across America, you should be able to get affordable, fresh, and healthy food,” Torres Small says. “We’re working to strengthen local and regional food systems so affordable locally grown foods are available closer to home.” She also says USDA is proud to partner with Reinvestment Fund so even more people can find good food options anywhere they live, all while supporting local farmers and ranchers. Reinvestment Fund has selected 16 public-private partnerships to receive $40.3 million in grants under the Healthy Food Financing Initiative. It will help expand access to nutritious and affordable foods in up to 20 states and Washington, D.C. For more information on the partnerships, go to usda.gov.

Thursday Watch List

Markets

USDA's weekly export sales will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. U.S. existing homes sales in March and the U.S. index of leading indicators are both set for 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Traders continue to monitor events in the Middle East with an Israeli attack on Iran looking more likely after Hezbollah attacked northern Israel Wednesday.

Weather

A strong cold front is moving into the Central Plains and western Midwest with areas of scattered showers. The front will continue to move south and east throughout the day. Some areas of severe storms will be possible from Texas into the Ohio Valley. Behind the front, temperatures are dropping and will be quite chilly going into the weekend.

Agriculture Emissions Hit Lowest Level in Ten Years

America’s farmers and ranchers lead the way in greenhouse gas emissions reduction through voluntary conservation efforts and market-based incentives. The Environmental Protection Agency released the “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2022.” The report shows that American agriculture reduced emissions by two percent from 2021 to 2022, the largest decrease of any economic sector. “The latest numbers demonstrate farmers’ and ranchers’ commitment to growing the food and fiber America’s families rely on while improving the land, air, and water, a benefit to the farm and climate,” says AFBF President Zippy Duvall. AFBF’s Market Intel report says U.S. agriculture represents just under ten percent of total U.S. emissions compared to other economic sectors. EPA says emissions from agriculture totaled 634 million metric tons in CO2 equivalents, or 9.99 percent of all emissions in 2022. That’s a 1.8 percent decrease or a drop of 12 million metric tons from 2021.

First HPAI Infection in Minnesota

The first case of Highly Pathogenic Avian Influenza is now confirmed in Minnesota. The USDA’s Animal and Plant Health Inspection Service confirmed the first 2024 outbreak in Minnesota in a Meeker County flock. The current outbreak, confirmed on April 11, has affected 70,100 birds. Meeker County saw four outbreaks in commercial turkey flocks in 2023. Earlier this spring, the Minnesota Board of Health issued guidance for biosecurity measures to help all poultry owners in the state. “Poultry owners might be used to us sounding an alarm on HPAI this time of year and talking about how biosecurity can limit the impact of this disease,” says Shauna Voss, the senior veterinarian for the Minnesota Board of Animal Health. “This year, we’re taking a new approach, and instead of highlighting one disease, we’re highlighting one solution for many diseases, which is effective biosecurity.” Since 2022, the virus has affected 88.11 million birds.

Farmers Sue the Biden Administration

On behalf of several Texas farmers, the Southeastern Legal Foundation and the Mountain States Legal Foundation filed a preliminary injunction regarding disaster payments. Specifically, they’re asking a federal court to stop the Biden Administration’s USDA from unconstitutionally and unlawfully funneling disaster and COVID-19 relief funds to certain farmers based on race and gender. Precision Risk Management says the plaintiffs are Alan and Amy West, Bryan Baker, and Rusty Strickland. They’ve owned their farms for decades and suffered from the effects of droughts and COVID-19. Rather than help them, USDA is harming them by favoring other producers at their expense based on factors like race and sex that were not authorized by Congress. USDA provides more money to “socially disadvantaged” farmers like women, American Indians, Asians, and many other groups. SLF is suing USDA on the plaintiffs’ behalf for violating the Fifth Amendment Equal Protection Clause and the Administrative Procedure Act. 

Global Wheat Stocks Forecast at Eight-Year Low

The USDA’s April Wheat Outlook shows global wheat ending stocks for 2023-2024 are projected down this month by 0.6 million metric tons to 258.3 million metric tons. The agency says that’s the lowest level in eight years. The biggest factor in this month’s decline is India’s wheat stocks, which are forecast down 2.1 million metric tons to 6.9 million metric tons. India’s government stocks estimates implied a stronger pace of use than previously expected. If this forecast is realized, India’s ending stocks will have declined more than 20 million metric tons from the peak of 27.8 million tons in 2020-2021. Global stocks have slipped 39 MMT from the peak level of 297 MMT in 2019-2020, with China estimated to account for 18 MMT of that decline. Total exporter-held ending stocks have been relatively consistent over the last several years, not showing the same declining trend as China and India’s stocks.

Ethanol Industry Grateful for Multi-National Recognition

The U.S. ethanol industry expressed appreciation for the joint statement from President Biden and Japanese Prime Minister Kishida (Kih-SHEE-dah)on the importance of ethanol as a decarbonization solution. The leaders recognized ethanol as a solution within the transportation sectors in both their respective countries. In the statement on April 10, Biden and Kishida said, “We will advance widespread adoption of innovative new clean energy technologies and seek to increase the globally available supply of sustainable aviation fuel or feedstock, including those that are ethanol-based and show promise in reducing emissions.” The U.S. Grains Council, Growth Energy, and the Renewable Fuels Association issued a joint statement saying, “Our organizations appreciate the dedication and support of USDA’s Foreign Agricultural Service, the U.S. Trade Representative, and other government agencies in advocating for grain-based ethanol in their international discussions. It can be used immediately as a carbon-mitigation tool for the on-road, aviation, maritime, and biochemical sectors.”

USDA Workshops on a New Insurance Option

The USDA’s Risk Management Agency has expanded the Nursery Value Select crop insurance program to all counties in all states and will host two virtual information workshops on Thursday, April 18. Start times are 1:00 p.m. CDT and 6:00 p.m. PDT for interested nursery producers who want to learn more about the program. These sessions will be valuable for producers in the newly expanded areas and especially for the Nursery Field Grown and Container crop insurance program, which ends with the 2026 crop year. The Nursery Value Select Insurance Program is a pilot program that allows nursery producers to select the dollar amount of coverage that best fits their needs. NVS, which is an asset-based form of insurance, covers damage due to, but not limited to, things like adverse weather conditions and fire. NVS is based on the existing nursery crop insurance program but has a simpler application and renewal process.

Wednesday Watch List

Markets

The Energy Department's weekly inventory report is set for 9:30 a.m. CDT Wednesday and includes ethanol production. The Federal Reserve's Beige Book follows at 1 p.m. USDA's Livestock, Dairy and Poultry Outlook will be out at 2 p.m. Traders remain wary about possible retaliation from Israel after Iran's attack over the weekend.

Weather

A system that has brought some heavy rain to the western half of the Corn Belt this week will see showers being less widespread as it moves through the Great Lakes on Wednesday. However, some areas of heavy rain and severe thunderstorms are still possible. Behind it, a stronger cold front will be moving through the Northern Plains. It may not have a lot of showers until it reaches Nebraska Wednesday night, but it will be bringing through a burst of colder air that will spread out through the country.

Marshall Eying Republican Majority for Farm Bill

Senator Roger Marshall, over the weekend, suggested Congress should wait until a Republican-led Senate to create the next farm bill. The Kansas Republican told the Hagstrom Report Congress may need to pass another one-year extension instead, then write the next bill once Republicans take over the Senate, if they take over the Senate. Marshall made the comments on the sidelines of the Commodities Futures Trading Commission's 2024 Agricultural Commodity Futures Conference. Marshall says, "I think we will have a better farm bill for the farmer if we have a Republican majority [in the Senate] and a Republican president in the White House." In that scenario, Marshall claims the farm bill will be better for the farmer. Democrats are resistant to nutrition and climate-related conservation cuts to fund crop insurance programs. However, Marshall claims there must be cuts to the Supplemental Nutrition Assistance Program because “there are “healthy adult men who have not worked for years” receiving benefits.

TFI Releases Latest Report on Fertilizer Industry Sustainability

The Fertilizer Institute Monday released new data highlighting industry improvement in sustainability performance of workforce safety, energy and the environment, fertilizer use, and industry innovation. TFI has collected data since 2013 on metrics that provide insight into the industry's sustainability efforts. The data announced Monday was gathered in 2023 and reflects industry operations in 2022. Participating members reported a total of 25 zero-discharge facilities, at which all wastewater is recycled. Farmers in the U.S. have a nitrogen use efficiency of 70 percent, which is much higher than the world average of 55 percent. The 2023 4R Advocates had an average of 100 percent nitrogen use efficiency. TFI President and CEO Corey Rosenbusch says, "Each step of the supply chain is focused on doing more with fewer resources while limiting impacts on communities and the environment." The data includes metrics on segments of the fertilizer industry, including fertilizer use on farms, worker safety, energy and environment, and industry innovation.

Retail Food Price Inflation Varied Geographically in 2023

Retail food price inflation varied by locality in 2023, according to USDA’s Economic Research Service. New data shows food-at-home, or grocery prices, rose the fastest last year in Houston, Texas, by 7.8 percent, followed by Boston, Massachusetts, at seven percent. In contrast, food-at-home prices declined by 1.3 percent in 2023 in Anchorage, Alaska, and rose by the lowest amount—1.7 percent—in Honolulu, Hawaii. Across the United States, food-at-home prices increased by 5.0 percent on average in 2023. Differences in retail overhead expenses, such as labor and rent, can explain some of the variation among cities, because retailers often pass local cost increases to consumers in the form of higher prices. Furthermore, differences in consumer purchasing patterns for specific foods may help explain variations in inflation rates among cities. Products that consumers purchase vary regionally, and each metro area’s inflation rate is calculated based on a representative set of foods unique to the area.

U.S. Pork Exports Continue to Surge in 2024

Exports of U.S. pork continued their robust growth in the first two months of 2024, according to recently released data by the U.S. Departments of Agriculture and Commerce. They increased ten percent in volume, to 502,585 metric tons, and ten percent in value, to $1.37 billion, over the same period last year. As it was for all of 2023, Mexico was the top destination for U.S. pork in January and February, totaling 196,452 metric tons, worth nearly $397 million, up 12 percent and 15 percent, respectively, from the same time in 2023. Exports accounted for $61.45 in average value from each hog marketed, which is the price producers received in January and February, up four percent from the same period in 2023, according to the National Pork Producers Council. Exports accounted for 25 percent of total production, an increase of 1.7 percent from the same month one year ago.

USDA Partners With Puerto Rico to Improve Food Supply Chain

USDA’s Agricultural Marketing Service Monday announced a cooperative agreement with Puerto Rico under the Resilient Food Systems Infrastructure Program. USDA and Puerto Rico are working together to offer more than $3.5 million in competitive grant funding for projects designed to build resilience across the middle of the supply chain. Puerto Rico is accepting applications for this Infrastructure Grant funding through June 30, 2024. Using the funding, the Puerto Rico Department of Agriculture will bolster the island's agricultural infrastructure with an emphasis on establishing advanced industrial processing facilities. The department will fund projects that expand processing capacity, support new wholesale product lines, increase packaging and labeling capacities, increase cold storage, and purchase specialized equipment and delivery vehicles. The island's priorities are informed by stakeholder engagement and outreach to underserved producers to understand their needs better. USDA Marketing and Regulatory Programs Undersecretary Jenny Lester Moffitt says, “The projects will create new opportunities for the region’s small and midsize producers to thrive.”

Gas Prices Higher Again, Diesel Lower

The national average gas price increased again last week, climbing 3.1 cents from a week ago to $3.60 per gallon. The national average is up 14.2 cents from a month ago and 5.5 cents per gallon lower than a year ago. The national average diesel price fell 1.2 cents last week and is $4.01 per gallon—16 cents lower than one year ago. GasBuddy's Patrick De Haan cautions, "With Iran's attack on Israel over the weekend, the stakes couldn't have been higher for a major potential impact on oil and gasoline prices." "If Israel responds with further attacks, the move could push oil prices higher. However, motorists can expect other factors to influence what they're paying at the pump, such as the switch to summer gasoline. The switch could result in prices in the Mid-Atlantic and Northeastern U.S. to increase as much as 20 to 50 cents per gallon for gas.

Tuesday Watch List

Markets

A report on March U.S. housing starts will be out at 7:30 a.m. CDT Tuesday, followed by March industrial production at 8:15 a.m. Traders will continue to keep close watch on South American weather and events in the Middle East.

Weather

A strong storm system in the Plains continues northeast into the Midwest on Tuesday. The system has had a history of producing severe storms, which continues to be a threat Tuesday as well. Those in Iowa, Illinois, and Missouri stand the best threat of that. Heavy rain that comes with these thunderstorms may slow down planting a bit but will help to increase soil moisture for early crop growth. Winds remain strong around the system as well, which is drying out soils in the southwestern Plains that were bypassed yet again.

Senators Continue Pushing for Summertime E15 Waiver

Senators Chuck Grassley (R-IA), John Thune (R-SD), and Dick Durbin (D-IL) are calling on the administration to permit nationwide E15 sales this summer. They sent a letter underscoring the geopolitical importance of uninterrupted biofuel access and noted that the president directed the Environmental Protection Agency to issue summertime waivers in 2022 and 2023. “Enabling the year-round sale of E15 helped allow our energy supply chain to ‘address extreme and unusual fuel supply circumstances’ caused by the war in Ukraine that are affecting all regions of the nation,” they said. “To counter these influences, we must pursue an all-of-the-above energy strategy, which includes leveraging domestic biofuels.” They also said as previous temporary waivers have proven, permitting the sale of higher blends of biofuels like E15 through the 2024 summer driving season bolsters domestic fuel supply, lowers consumer costs at the pump, and promotes the environmental benefits of American biofuels and modern agriculture.

FCA Board Gets Quarterly Update on Ag Conditions

The Farm Credit Administration board received a quarterly report on economic issues affecting agriculture and an update on the financial conditions affecting agriculture. They also got an update on the financial condition and performance of the Farm Credit System. Interest rates remain high after recent inflation reports came in higher than expected, but rate cuts by the Federal Reserve are possible later in the year. Other measures of the economy are favorable, such as low and stable unemployment levels and economic growth. Agricultural producers are facing tightening margins, with cash receipts expected to decline this year and high input costs likely to persist. Crop prices have declined because of elevated supplies. Issues in the livestock industry include recovering from the Texas wildfires and recent HPAI infections in dairy cattle herds. Full earnings for the Farm Credit System were up compared to the prior year but provisions for credit losses increased.

Large Tractor Sales Increase Again

For the second straight month, unit sales of 100-plus horsepower ag tractors increased in the U.S. New data from the Association of Equipment Manufacturers says March sales jumped 3.2 percent compared to last year, following February’s increase of 2.8 percent compared to 2023. Total year-to-date sales of ag tractors and combines are below 2023’s pace. Tractors are down 13.3 percent while combines fell 20.4 percent. “Seeing the continued growth in 100-plus horsepower tractor sales is a welcome sight as 2024 progresses, despite the softness in other tractor sizes,” says AEM Senior Vice President Curt Blades. “As we start the planting season, we’re optimistic about the future of the ag equipment market.” Unit sales of 100-plus horsepower tractors also grew in Canada during March, rising 2.7 percent compared to 2023. Four-wheel drive ag tractor unit sales jumped 27.3 percent compared to last year and are up 11 percent year-to-date compared to 2023.

Forest Service Invests in Rural Communities

The USDA’s Forest Service announced it’s issuing more than $232 million to support public schools, roads, and other municipal services through the agency’s Secure Rural Schools Program. As the agency invests in ways for forests to generate more economic opportunities in rural areas, it also aims to support the quality of life in those communities. “National forests and grasslands cover more than 193 million acres, including across rural counties that are important partners in helping sustainably manage resources,” says Ag Secretary Tom Vilsack. “The Secure Rural Schools program is able to contribute to the economic vitality and well-being of the communities intertwined with our forests.” Forest Service Chief Randy Moore says the Secure Rural Schools Program is just one of the ways the Forest Service supports communities nationwide. “This funding aids schools and roads, reimburses counties for national forest emergency services, and assists in creating community wildfire protection plans,” Moore says.

Brazil Could Expand Cropland by 35 Percent

Brazil is a major soybean, corn, and cotton grower but could expand its crop area by more than a third. Successful Farming says Brazil could do that by converting overgrazed or overgrown pastureland says a research agency in Brazil’s Ministry of Agriculture. A team of university economists say besides the potential addition of 70 million acres of cropland, Brazil could also increase production by devoting more land to second-crop corn. “The potential for Brazil to expand its agricultural output through converting degraded pastureland into cropland is huge,” the U.S. analysts said while writing in Farmdoc. “With approximately 70 million acres identified as suitable for conversion, Brazil could increase its total planted area by 35 percent compared to this year.” There are currently 45 million acres of “degraded” pastureland in four states that are leading corn and soybean producers in Brazil. Experts say Brazil has a lot of unfarmed land with potential.

Weekly Corn Export Sales Decline

USDA data shows export sales dropped to a marketing year low in the seven days that ended on April 4, although soybean and wheat sales increased. Corn sales dropped 325,500 metric tons, down 66 percent week to week and 72 percent from the prior four-week average. The agency says that’s the lowest level since the marketing year began on September 1. Japan was the big buyer at 221,100 metric tons, followed by Mexico and South Korea. Weekly exports for the week hit 1.56 million tons, down five percent from the previous week. Soybean sales to overseas buyers rose to 305,300 metric tons, a three percent drop from the average for this time of year. Mexico bought 172,600 tons. Exports totaled 503,400 tons, eight percent lower than the prior week. Wheat sales for export totaled 80,700 metric tons, higher than the prior week’s 16,100 tons but two percent below the average.

Top 5 Things to Watch - Cattle Numbers, Storm Front Top the Watch List

1. Crop Progress update: Monday's USDA NASS' weekly national Crop Progress report, due out at 3 p.m., will be of interest as there was a bit more field activity this past week where rains didn't keep tractors parked. We'll compare the progress with previous years' early April activity.

2. Cattle on Feed Friday: Latest cattle numbers will hit midday Friday, and we'll have both expectations in a preview piece early in the week as well as the report and professional analysis of it later Friday. S

3. More precipitation in forecast: As much of the country headed into a warmer, but windy, weekend, DTN meteorologists are watching a trough off the West Coast that will move eastward during the weekend and into the middle of the country early the week of April 14th. That storm is likely to produce widespread precipitation, strong winds, severe storms, and areas of snow as it slowly moves across the country throughout the week.

4. Wheat conditions improve: We'll track additional reports from wheat country as that crop begins to kick off spring growth.

5. Economic reports this week: Monday kicks off with the 7:30 a.m. release of U.S. Retail Sales, then at 9 a.m. we'll see Business Inventories and Home Builder Confidence Index. At 10 a.m., weekly Grain Inspections report is due, followed by 11 a.m. release of the Oil Crops Outlook. At 2 p.m. is the Feed and Wheat Crop outlooks, then at 3 p.m. is the USDA NASS' Crop Progress report, followed by our full analysis of the reports. Tuesday the general economic condition reports include the 7:30 a.m. release of U.S. Housing Starts and Building Permits. At 8:15 a.m. is the Industrial Production and Capacity Utilization numbers. â?¯Wednesday we'll see the 10 a.m. release of Weekly Petroleum Status report from EIA, including ethanol data.â?¯ At 2 p.m. the Broiler Hatchery report is released. Thursday starts with 7:30 a.m. release of Grain Export Sales and Initial Jobless Claims.â?¯ At 9 a.m., Existing Home Sales and U.S. Leading Economic Indicators is out, with the Weekly Economic Index hitting at 10:30 a.m. On Friday, at 2 p.m., the Cattle on Feed report is released, followed by DTN analysis of the report. The CFTC Commitment of Traders report surfaces at 2:30 PM.

Monday Watch List

Markets

Back from the weekend, traders will keep close watch over the latest weather forecasts and check news updates from the Middle East. A report on March U.S. retail sales is set for 7:30 a.m. CDT Monday. USDA's report of weekly export inspections is at 10 a.m. The National Oilseeds Processors Association will have an estimate of members' soybean crush in March later Monday morning. NASS's weekly Crop Progress report is at 3 p.m. with the first estimates of soybean plantings to be included.

Weather

A storm system in the Rockies will move out into the Plains on Monday. Winds are increasing ahead of it and could create some additional risks of wildfires where it has been dry. Scattered severe thunderstorms are expected to form in the Plains as well, with large hail being the most likely hazard.

April WASDE Calls for Lower Corn and Higher Soybean Ending Stocks

The April World Agricultural Supply and Demand Estimates Report predicts lower corn and higher soybean ending stocks. The 2023-2024 U.S. corn outlook is for greater corn used for ethanol, feed, and residual use. With no supply changes and use rising, ending stocks dropped 50 million bushels to 2.1 million. The season-average farm price is lowered five cents to $4.70 a bushel. The U.S. soybean outlook includes lower imports, residual use, exports, and higher ending stocks. With trade changes and slightly lower residual use, soybean ending stocks were raised 25 million bushels to 340 million. The season-average soybean price is forecast at $12.55 a bushel, down ten cents. The supply and demand outlook for U.S. wheat is for lower supplies, reduced domestic use, unchanged exports, and higher ending stocks, which are raised 25 million bushels to 698 million, 22 percent above 2023. The season-average farm price is down five cents at $7.10.

U.S. Ethanol Industry Comments on Brazilian Ethanol Tariffs

The U.S. Grains Council, Growth Energy, and the Renewable Fuels Association jointly submitted comments to the Brazilian Chamber of Foreign Trade regarding the Brazilian tariff on imported U.S. ethanol. In October 2023, Brazil’s association of fuel importers formally requested the government drop the ethanol duties because data showed the tariff raised fuel costs for Brazil’s domestic consumers. In anticipation of the open comment period, the three organizations mobilized a number of industry stakeholders to seek a permanent removal of Brazil’s tariff on imported U.S. ethanol. As of January 1, 2024, the current duty stands at 18 percent, while Brazilian ethanol imported into the U.S. enjoys free access to the American market. In their comments, the groups say, “We’d like to stress that the U.S. industry will continue to advocate for restrictive measures to entry for Brazilian ethanol into the U.S. if the Brazilian government doesn’t rethink the current tariff policies.”

Survey on Farmers and Sustainable Practices

McKinsey and Company research reveals that a vast majority of American farmers have an understanding of sustainable farming. While 90 percent of farmers understand the practices, the uptake remains low. Even where farmers are adopting sustainable practices, they are only implementing them on a small share of their acreage, typically under 30 percent. The survey shows a positive outlook for the future of sustainable farming as farmers are willing to adopt the practices. Some major barriers to adoption remain, including obtaining a market premium for sustainably grown crops and implementation difficulties. Adoption of practices is correlated with perceived return on investment. Practices with the highest perceived ROI, such as applying fertilizer based on soil sampling, have the highest adoption rates. Practices that require only behavioral changes, such as reduced or no-till, have the highest adoption levels at 68 percent. Despite the perceived benefits of sustainable practices, farmers expect costs to remain high.

Republicans Propose a Crop Insurance Subsidy Boost

The University of Illinois’ Farm Policy News says Republicans on the Senate Agriculture Committee proposed putting $4 billion into the national crop insurance program. That means the government would pay a larger share of the policy premiums for the highest coverage levels. The plan, called the FARMER Act, would inject $4.2 billion over ten years. Premium support for revenue and yield protection at the 80 percent coverage level would rise from 68 to 77 percent. At the 85 percent coverage level, protection would increase from 53 to 68 percent. The proposed increases would only be provided to enterprises and whole farm units. The plan counters an earlier suggestion on crop insurance from Senate Ag Chair Debbie Stabenow, who said her proposal was just intended to jump-start negotiations on the farm bill, and she’s “glad it worked.” AFBF President Zippy Duvall says, “The FARMER Act will make higher coverage more affordable.”

Iowa Takes Action on Foreign Land Ownership

Iowa Governor Kim Reynolds signed into law new reporting requirements and harsher penalties related to foreign land ownership in Iowa. Reynolds says Iowa plays an important role in America’s food chain, and when Iowa speaks on threats to American agriculture, the country listens. “American soil belongs in American hands,” Reynolds says. The law grants the Iowa attorney general more powers related to foreign land ownership. Those powers include the ability to subpoena foreign landowners for financial records and land purchase agreements for investigations into potential violations of foreign farmland owner restrictions. Foreign landowners would be required to provide details to the state about their land owned in other states if it’s more than 250 acres. It also requires the Iowa Secretary of State to file an annual report on foreign farmland ownership in Iowa for consideration by state officials. The law also raises the fine levels on violations for reporting requirements.

USDA Sets Date for Pecan Referendum

The USDA will conduct a referendum May 10 through June 24 for eligible domestic pecan producers and importers to decide whether to continue their research and promotion program. Current producers that have domestically produced 50,000 pounds of in-shell pecans or 25,000 pounds of shelled pecans from October 1, 2022, through September 30, 2023, are eligible to vote in the referendum. Importers who have brought in 50,000 pounds of in-shell pecans or 25,000 pounds of shelled pecans during the same period can also vote in the referendum. The order will continue if it is favored by the majority of domestic producers and importers voting in the referendum who have been engaged in the production or importing of pecans. The USDA’s Agricultural Marketing Service will conduct the referendum by express mail and electronic ballot. AMS staff will express mail ballots and voting instructions to all known eligible pecan producers and importers during the voting period.

Friday Watch List

Markets

The University of Michigan's consumer sentiment index for April is due out at 9 a.m. CDT Friday. Traders will keep watch over the weather forecasts in South America and other major crop areas. Any further fighting in the Middle East or Ukraine will also continue to get attention.

Weather

A storm system continues to slowly push through the Northeast on Friday while another is just off the West Coast. Winds will still be breezy in the East for Friday while quieter conditions will be felt in the middle of the country.

House Ag Chair Intends on Farm Bill Markup in May

House Agriculture Committee Chairman Glenn GT Thompson says "without a doubt," the farm bill will be out of his committee by Memorial Day. Speaking exclusively to Agri-Pulse, The Pennsylvania Republican says he found a way to fund commodity program changes, adding, "it's going to allow us to do what we know needs to be done in terms of safety net issues." Getting a five-year farm bill across the finish line remains the priority for agriculture, following last years' one-year extension of the 2018 farm bill. However, lawmakers in the Senate, like Senator Chuck Grassley, are not optimistic. Grassley said to reporters this week, "What they need is a five-year extension, but I'm very pessimistic about there being an agreement in the Senate on a bipartisan farm bill this year." While the House may ultimately pass a bill, Grassley adds, "I don't think you should assume that that's got much to do with what's happening in the United States Senate.”

March Consumer Price Index: Small Increases in Food Prices

The Consumer Price Index for All Urban Consumers increased 0.4 percent in March on a seasonally adjusted basis, the same increase as in February. Over the last 12 months, the all items index increased 3.5 percent before seasonal adjustment. The food index increased 0.1 percent in March, while the food at home index was unchanged. Both indexes were unchanged in February. Three of the six major grocery store food group indexes decreased over the month while the remaining three had price advances. The cereals and bakery products index decreased 0.9 percent over the month, the largest 1-month seasonally adjusted decrease ever reported in the series. The food away from home index rose 0.3 percent in March, after rising 0.1 percent in February. The food at home index rose 1.2 percent over the last 12 months, while the index for food away from home rose 4.2 percent over the last year, and the overall food index has increased 2.2 percent over the last year.

EPA Finalizes PFAS Drinking Water Limits

The Environmental Protection Agency Wednesday finalized PFAS drinking water limits, a move the agency claims will protect 100 million people from PFAS pollution. Farmers and ranchers do not produce PFAS; however, these chemicals can be found in the water that is provided to their livestock and crops. In certain areas of the country, PFAS levels have risen in milk, beef, and row crops, according to the American Farm Bureau Federation. EPA is taking steps to protect public health by establishing legally enforceable levels for several PFAS known to occur individually and as mixtures in drinking water. This rule sets limits for five individual substances. EPA estimates that between about six percent and ten percent of the 66,000 public drinking water systems subject to this rule may have to take action to reduce PFAS to meet these new standards. All public water systems have three years to complete their initial monitoring for these chemicals.

APHIS Supports Projects to Control and Prevent Chronic Wasting Disease

USDA's Animal and Plant Health Inspection Service this week announced the availability of more than $12 million to control and prevent chronic wasting disease in wild and farmed deer and elk. CWD is an infectious, degenerative disease of cervids that causes brain cells to die, ultimately leading to the death of the affected animal. The incubation period can be lengthy, and infected animals may look healthy until the end stages of the disease, making it difficult to distinguish them from healthy animals. Animals infected with CWD can transmit the disease to other animals during the "silent" incubation period. The disease has spread widely, and the limited number of tools and their efficacy impact the ability to control the disease effectively. Eligible applicants may submit multiple proposals for each funding opportunity, requesting up to the maximum amount for that funding opportunity in each proposal. The funding opportunity announcements are posted on Grants.gov. Applications are due on June 10, 2024.