USDA Investment to Strengthen Hispanic-Serving Higher Education

The Department of Agriculture recently announced $12 million for Hispanic-serving Institutions of higher education. The announcement last week was part of a launch of the first in a series of virtual roundtable engagement sessions with Minority-serving Institutions and Land-grant Universities serving underrepresented students. The funding is part of USDA's National Institute of Food and Agriculture's Hispanic-serving Institutions Education Grants Program. It includes investments in Arizona, California, Colorado, Florida, New Mexico, New York, Oregon, Puerto Rico and Texas. As part of the funding, California State University, Long Beach, will use $975,000 for its "Leveraging Interdisciplinary Nutritional Knowledge" Program. The program aims to support undergraduate and graduate students in the food and human sciences professional and scientific workforce. Texas A&M, Kingsville, will use its $975,000 grant to support its Getting Occupational Student Training in Agricultural Research Through Novel Workshops project. Through this project, students are exposed to experiential-based learning and partnerships with USDA researchers.

McDonald's Seeks net Zero Emissions by 2050

McDonald's Corporation recently announced a commitment to achieve net-zero emissions across its global operations by 2050. The company is joining the United Nations Race to Zero campaign and signing on to the Science Based Targets initiative's Business Ambition for 1.5°C campaign. McDonald's will increase the emissions reduction levels in its existing 2030 science-based target and will set a long-term reduction target to reach net-zero emissions. Efforts underway since 2018 have already resulted in an 8.5 percent reduction in the absolute emissions of restaurants and offices and a 5.9 percent decrease in supply chain emissions intensity against a 2015 baseline. McDonald's says a world with lower greenhouse gas emissions will result in more favorable conditions for farmers and ranchers. Efforts by the company to meet the goal include reducing emissions in its supply chain, empowering employees to innovate and use locally tailored solutions, and offer insights to others to reduce emissions in forest, land and agriculture.

Oil Prices Reach 7 Year High, Gas Prices Surge

Oil prices reached a seven-year high last week, pushing fuel prices higher. The national average price of gas jumped 5.2 cents to $3.25 a gallon, and the price of diesel increased 10.4 cents to $3.45 a gallon, according to GasBuddy. Gas prices were pushed to their highest since 2014, all on OPEC’s decision not to raise production more than it already agreed to in July. GasBuddy’s Patrick De Haan says, “The OPEC decision caused an immediate reaction in oil prices, and amidst what is turning into a global energy crunch, motorists are now spending over $400 million more on gasoline every single day than they were just a year ago.” De Haan adds the problems continue to relate to a surge in demand as the global economy recovers, combined with deep cuts to production from early in the pandemic. With OPEC last week deciding against an additional rise in oil production to meet rising demand, supply will likely remain tight.

Tuesday Watch List

Markets

Four USDA reports are on Tuesday's docket, starting with weekly grain export inspections at 10 a.m. CDT. USDA's WASDE and Crop Production reports are both due out at 11 a.m. CDT, followed by Crop Progress at 3 p.m. Traders will continue to keep an eye on the latest weather forecasts and watch for any news of an export sale that might emerge.

Weather

A strong system that is already producing snow in the front range of Montana and Wyoming will develop a strong low in Colorado later Tuesday. This will cause showers and thunderstorms to spring up across the Plains later Tuesday and especially Tuesday night. Some thunderstorms across the Southern Plains may be severe and winds may be breezy in the Plains as well. Heavy rainfall amounts will continue with this system as it spreads north and east through Wednesday as well, causing harvest delays but improving soil moisture for winter wheat.

USDA Considering Waivers for Slower Pork Plant Processing Lines

Ag Secretary Tom Vilsack says the USDA is working on a proposal for a waiver system for hog plants forced by a federal court to slow down their processing lines. Waivers that would allow plants to speed up processing lines again could renew concerns about worker safety but boost profits for pork companies and farmers. Vilsack didn’t specify what those waivers would do or how they would get implemented. A federal judge ruled earlier this year against the Trump administration rule that allowed pork plants to run slaughter lines without speed limits, as long as they prevented contamination and minimized bacteria. Reuters says the United Food and Commercial Workers Union had challenged the 2019 rule because of worker safety issues. The Biden administration’s USDA didn’t appeal the ruling. However, the agency is now looking at ways to allow more adequate processing speeds but doing so without endangering worker health and safety. Vilsack told a Congressional hearing that USDA is working with the pork industry and workers’ representatives on the issue. Seaboard Foods sped up its plant in Oklahoma last year, becoming the first company to operate under the 2019 rule. Before the rule change, six other U.S. pork plants had bypassed previous speed limits with special USDA permission.

House Ag Committee Dems Want Ag Spending Preserved

House Ag Committee Chair David Scott and fellow Democrats sent a letter to House and Senate leadership asking them to preserve the ag spending provisions in the Build Back Better Act. They point out that the provisions included in the agriculture portion of the Build Back Better Act will make transformative investments that will benefit agricultural producers and rural communities for years in areas of agricultural research, rural development, renewable energy, biofuels, conservation, and forestry. “America has been the world leader in agricultural research and innovation, but that position is at risk if we do not make key investments in research and education programs,” they say in the letter. The Democrats also note that the funding provided for climate-smart agricultural practices will help address the fact that the current farm bill conservation programs are already oversubscribed, with continuing backlogs that show the demand from producers and landowners who are willing to undertake efforts to reduce greenhouse gas emissions and rebuild soil carbon. “We encourage you to keep these crucial investments in place, and we look forward to furthering discussions on the importance these investments will have, especially as we prepare to write the next Farm Bill,” they added.

Torres Small Confirmed as Undersecretary for Rural Development

The U.S. Senate confirmed Congresswoman Xochitl (So-CHEEL) Torres Small as the USDA’s Undersecretary for Rural Development. “As Undersecretary for Rural Development Xochitl Torres Small will build on her legacy as a champion for small towns and rural communities, much like the one she grew up in in New Mexico,” says Senate Ag Chair Debbie Stabenow. “She will give voice to 60 million rural Americans at the highest levels of USDA, and I look forward to working with her to address critical rural needs including high-speed internet, infrastructure, and good-paying jobs.” Ranking Senate Ag Committee Member John Boozman says that while the committee handles a wide range of issues, everything they do boils down to improving the livelihoods and future for those who call rural America home. “There are many pressing challenges facing our rural communities that we must work together to address,” he says. “I congratulate Undersecretary Torres Small and am ready to work with her to expand access to affordable high-speed broadband, ensure continued access to reliable energy production, improve water infrastructure, and create new economic opportunities in rural America.”