CFAP 2 Payments Over $11.1 Billion

Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) total $11.15 billion as of November 29.

Acreage-based payments total $5.5 billion and account for 49% of payments made, while livestock payments are at $3 billion, sales commodities are at $1.6 billion, dairy is at $$1.1 billion and eggs/broilers are at $44.35 million.

Payments for five commodities total $1 billion or more—corn ($3.0 billion), cattle ($2.4 billion), sales commodities ($1.6 billion), soybeans ($1.2 billion) and milk ($1.1 billion).

Iowa still leads all states at $1 billion, with the rest of the top five states being Nebraska ($755.8 million), California ($751.67 million), Minnesota ($719.8 million), and Illinois ($706.3 million).

Signup for CFAP 2 runs through December 11.

USDA Forwards Final Rule On Hemp Program To OMB

The process of getting a final rule for a domestic hemp production program is closer as USDA's Agricultural Marketing Service (AMS) has forwarded its revised final rule to the Office of Management and Budget for review.

The current target for a final rule is listed as October 2021.

USDA reopened its comment period on the interim final rule through October 8, 2020, and the stop-gap funding plan that keeps the government operating through December 11 included a provision to extend the hemp pilot program through September 2021.

Meanwhile, USDA's Risk Management Agency (RMA) also expanded the pilot multi-peril crop insurance plan for hemp to include Arizona, Arkansas, Nevada and Texas, and added 13 counties in states where the coverage was already available. RMA also made other adjustments to the pilot effort.

Wednesday Watch List

 Markets

Wednesday's reports start with private sector U.S. job growth for November from ADP at 7:15 a.m. CST, an early hint at Friday's unemployment report. The U.S. Energy Department reports on weekly energy inventories at 9:30 a.m. and is followed by the Federal Reserve's Beige Book at 1 p.m. Export news and the latest weather forecasts will also be noted.

Weather

A system will bring moderate showers to the Southern Plains Wednesday, along with moderate snowfall in southwest Kansas, western Oklahoma, and the northern Texas Panhandle. Western areas are likely to see winter wheat go dormant while the moisture will benefit winter wheat in the eastern Plains. Other areas will be dry.

China Purchases of U.S. Commodities Still Lagging

China’s purchases of U.S. farm commodities still lag behind targets set in the Phase One Agreement, according to research by the Peterson Institute. Through October 2020, China's year-to-date total imports of covered products from the United States were $75.5 billion, compared with a prorated year-to-date target of $137.3 billion. Over the same period, U.S. exports to China of covered products were $70.3 billion, compared with a year-to-date target of $125.4 billion. Through the first ten months of 2020, China's purchases of all covered products were thus only at 56 percent for U.S. exports or 55 percent of Chinese imports of their year-to-date targets. Through October 2020, China's imports of covered agricultural products were $15.6 billion, compared with a year-to-date target of $27.1 billion. Over the same period, US exports of covered agricultural products were $17.5 billion, compared with a year-to-date target of $24.6 billion. The data is based on October 2020 statistics released last week.

EPA Releases Draft Biological Evaluation for Glyphosate

The Environmental Protection Agency recently released a draft biological evaluation for glyphosate. EPA's draft biological evaluation for glyphosate includes an effects determination for listed species and designated critical habitats and finds that glyphosate is likely to adversely affect a significant percent of endangered species and critical habitats. If EPA determines glyphosate may affect a listed species or its critical habitat, the agency will consult with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service as appropriate. Of more than 1,700 species considered, EPA claims roughly 93 percent were likely to be adversely affected by glyphosate, with more than half the species being plans. EPA followed its March 2020 Revised Method for National Level Listed Species Biological Evaluations of Conventional Pesticides to conduct this biological evaluation. The assessment could mean further restrictions and controls on glyphosate. Glyphosate is used on about 298 million acres of agricultural cropland annually.

USDA Announces Expansion, Other Improvements to Hemp Crop Insurance

The Department of Agriculture Monday announced the expansion of the pilot Multi-Peril Crop Insurance plan for hemp. The expansion and other improvements to the plan, will begin in the 2021 crop year. USDA Risk Management Agency Administrator Martin Barbre says, “Hemp offers exciting economic opportunities for our nation’s farmers, and we are listening and responding to their risk management needs.” The program expansion allows for additional states and specific counties to be included in the program. The changes also allow broker contracts for hemp grain and adjust program reporting and billing dates. Sales closing, cancellation, production reporting and termination dates were adjusted to match dates of similar crops. Meanwhile, USDA adjusted Acreage Reporting Dates based on regional final planting dates. The premium billing dates for all states changed to August 15. For more information on USDA risk management programs for hemp producers, they are encouraged to visit farmers.gov/hemp.

USDA to Conduct 2020 Local Food Marketing Practices Survey

The Department of Agriculture’s National Agricultural Statistics Service will conduct the 2020 Local Food Marketing Practices Survey, beginning this month. First conducted in 2015, the Census of Agriculture special study will look at local and regional food systems and provide new data on how locally grown food in the United States are marketed and sold. The results will be available in November 2021. The 2020 Local Food Marketing Practices Survey is part of the Census of Agriculture Program and is required and protected by law. Federal laws require producers to respond and USDA to keep identities and answers confidential. Farmers and ranchers who receive the survey may complete it securely and conveniently online at www.agcounts.usda.gov or by mail. The deadline for response is February 16, 2021. The survey will ask producers about their production and local marketing of foods during the 2020 calendar year, including the value of food sales by marketing channels such as farmers markets, restaurants, and roadside stands.