NPPC Calls on Senate to Adopt House Aid Provision

The National Pork Producers Council (NPPC) is calling on the Senate to include the provisions on direct payments to producers forced to euthanize livestock that were part of the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act).

The House passed legislation includes provisions for additional direct payments to producers and compensation for euthanized livestock, which NPPC President Howard AV Roth called “a lifeline” for farmers.

He also spoke favorably about animal health laboratory funding and mental health provisions included in the bill. As Congress works on the next COVID-19 relief package, NPPC is “encouraging the Senate to adopt these [House] provisions in companion legislation, with all due haste, and to work with the House to deliver much needed additional relief to American farmers,” Roth said.

Without further aid “we will see thousands of hog farmers liquidate their family farms, resulting in a contracted and more consolidated industry,” he added, saying that result would be bad for both farmers and consumers.

USDA Cuts FY 2020 Export, Import Forecasts on COVID-19 Impacts

U.S. agricultural exports in Fiscal Year (FY) 2020 are now expected to be valued at $136.5 billion, down from $139.5 billion in February, while the value of imports is now seen at $130.2 billion, down from $132.5 billion.

The economic impacts from the COVID-19 situation were flagged for the downward revisions to the outlook. The outlook would leave a trade surplus of $6.3 billion.

The COVID-19 situation is hitting with a one-two punch, the Economic Research Service (ERS) said, “damaging the ability of individuals and firms to produce goods and services while simultaneously changing the consumption behavior of consumers and businesses across the globe.”

Global real per capita GDP growth is seen declining by 5.5% compared to 2019 with the U.S. result now expected at a decline of 7.1%. Their prior outlook was for expansion of 1.1%, which means the downgrade translates in reduction of $1.8 trillion in economic activity.

USDA will update its trade data Thursday with April figures.

Tuesday Watch List

Markets
There are no official reports on Tuesday's docket, but traders will be watching for a possible soybean export sale announcement after rumors circulated Monday. The latest weather forecasts will be of interest and after Monday's confusing experience, it wouldn't be surprising to find other rumors develop, concerning China.

Weather
Dry with very warm to hot conditions will cover most crop areas Tuesday. Precipitation will be confined to light rain crossing the northern Midwest. Heat and sunlight will generally favor crop progress, with adequate to surplus soil moisture in many areas.

NPPC Asks Senate to Pass Ag Provisions in HEROES Act

The National Pork Producers Council is asking the Senate to adopt the agricultural provisions in the HEROES Act that was recently passed by the House. Howard “A.V.” Roth (Rowth), NPPC President, says they’re asking the Senate to make the move as quickly as possible. “All pork producers are hurting, and immediate action is necessary,” Roth says. “We need the Senate to act quickly to provide this critical lifeline to hog producers.” He says without immediate government assistance, family farmers, many of whom have been on their farm for generations, will be bankrupted by the impact of COVID-19. That won’t just hurt the farmers themselves, but instead will destroy the livelihoods of countless communities across rural America. That will directly lead to consolidation and contraction in a farm sector that generates more than 500,000 jobs and $23 billion in personal income. The Hagstrom Report says U.S. hog producers are looking at a potential $5 billion loss this year. That’s even though hog processors are working at a faster pace than they were even a couple of weeks ago. However, there is still a backlog of up to 150,000 hogs every week, and producers are losing about $50 to $60 per hog.

Growth Energy Celebrates the First Anniversary of Year-Round E15

This weekend marked the first anniversary of the Environmental Protection Agency’s final rule that allowed American drivers to purchase ethanol year-round. The rule was issued on May 31 of 2019. It lifted summertime E15 restrictions and represented the culmination of a ten-year campaign that began with Growth Energy’s 2009 “Green Jobs Waiver” petition, which first opened E15 to all model year 2001 or newer light-duty vehicles. “COVID-19 slowed fuel demand in recent months, but the promise of E15 remains stronger than ever as we mark the first anniversary of year-round sales,” says Growth Energy CEO Emily Skor. “This was a landmark victory for our members, congressional champions, retail partners, and consumers across the country who fought by our side to lift outdated barriers to higher-octane, lower-carbon fuel options.” As drivers begin to return to the roads, Skor says E15 is likely poised for rapid growth. In fact, a recent survey shows that 65 percent of American drivers have big plans for extra summer travel once COVID-19 restrictions are lifted. “We already know that customers who try E15 are coming back, again and again, to take advantage of this more affordable and cleaner fuel,” Skor adds. “Last summer alone, E15 sales jumped 46 percent on a per-store basis from the previous year thanks to year-round sales.”

Dairy Management, Inc., Showcasing the Resilience of the U.S. Dairy Industry

In celebration of June Dairy Month, Dairy Management, Inc., as well as state and regional checkoff teams across the country, are showcasing dairy’s resilience and community impact during COVID-19. The efforts kicked off on June 1, which is World Milk Day, with a video titled “Raising Gallons.” It features Olympians, NFL players, famous chefs, and others raising a gallon of milk to show their appreciation for dairy farmers while supporting the checkoff’s goal of getting nutritious dairy to food-insecure Americans through its Feeding America partnership. “This pandemic has shown just how essential Feeding America and dairy farmers are to helping feed those in need,” says Marilyn Hershey, a Pennsylvania dairy farmer and DMI Chair. “We’re working toward a common goal and our checkoff strategy of getting dairy into the hands of those who need it wouldn’t be possible without Feeding America and its nationwide network of 200 local food banks.” Additional checkoff-led efforts nationally and locally will promote “30 Days of Dairy” throughout June. Each day of the month will be filled with virtual farm tours and content that celebrates the role dairy plays in people’s lives while illustrating dairy farmers’ resilience and contributions to their communities. The checkoff will promote dairy-centric recipes for summer, with stay-at-home cooking expected to continue as a major activity for many families. The content will be published on DMI’s redesigned website at www.usdairy.com.

U.S. Soy Ready to Meet the Needs of the Global Aquaculture Industry

The U.S. Soybean Export Council hosted a global digital conference called “COVID-19 and the Implications to Aquaculture.” It featured almost 900 global customers and soybean industry representatives from 60 countries. The event focused on COVID-19’s impact on global aquaculture production and marketing supply chains. USSEC says as global markets adapt to these times, U.S. soy is ready to meet the needs of the global aquaculture industry. “Our industry has always prioritized innovation and adaptability to better serve our customers and meet the needs within the global seafood industry, and the COVID-19 pandemic is no different,” says USSEC CEO Jim Sutter. “At USSEC, we’ve had an active program in aquaculture for 35 years, with partners ranging from small fish farms in Asia to other large international operations across the globe.” He says no matter who USSEC works with, their top priority is to proudly optimize and demonstrate the value and nutritional benefits of U.S. soy in aquaculture diets. By 2030, USSEC says 62 percent of all seafood produced for human consumption will be a product of aquaculture. With the help of U.S. soy, expanding feed-based aquaculture can address the needs of both supply and demand.