Corn and biofuel groups Tuesday made comments to the Environmental Protection Agency regarding its Renewable Fuel Standard proposal. 

EPA proposes Renewable Volume Obligations that Growth Energy says would undercut blending requirements for biofuel in 2021, and retroactively waive 2.96 billion gallons from 2020 RVOs finalized almost two years ago. 

Under the proposal, 2022 volumes return to statutory levels, and the administration pledges to deny all improper small refinery exemption applications. 

Growth Energy CEO Emily Skor welcomed some of the changes but says the proposal “sets an extremely troubling precedent of revising finalized volumes for 2020 and back-setting volumes for 2021 rather than driving growth in renewable fuels.” 

National Corn Growers Association President Chris Edgington says corn farmers produce low-carbon ethanol that offers immediate emissions reductions allowing agriculture to help address climate change. Edgington adds, "our success helping you meet these commitments depends on EPA sending a clear and firm message that volume requirements will be enforced.”

Corn and biofuel groups Tuesday made comments to the Environmental Protection Agency regarding its Renewable Fuel Standard proposal. EPA proposes Renewable Volume Obligations that Growth Energy says would undercut blending requirements for biofuel in 2021, and retroactively waive 2.96 billion gallons from 2020 RVOs finalized almost two years ago. Under the proposal, 2022 volumes return to statutory levels, and the administration pledges to deny all improper small refinery exemption applications. Growth Energy CEO Emily Skor welcomed some of the changes but says the proposal “sets an extremely troubling precedent of revising finalized volumes for 2020 and back-setting volumes for 2021 rather than driving growth in renewable fuels.” National Corn Growers Association President Chris Edgington says corn farmers produce low-carbon ethanol that offers immediate emissions reductions allowing agriculture to help address climate change. Edgington adds, "our success helping you meet these commitments depends on EPA sending a clear and firm message that volume requirements will be enforced.”

Corn, biofuel groups testify to EPA on RFS

R-CALF calls the White House action plan for the meat supply chain progress, but the group remains skeptical about the plan. 

The effort includes government funding intended to slowly rebuild the competitive marketing channels for cattle and beef, which has created what the administration calls a "bottleneck" in the nation's food supply chain. 

R-CALF USA CEO Bill Bullard says, "We recognize that this level of government involvement is unprecedented, and that it's critical for reversing the decades of inattention." 

But Bullard says his group remains skeptical about the plan's strategy for addressing decades of nonenforcement of U.S. antitrust laws and the 100-year-old Packers and Stockyards Act. 

R-CALF has waited for years, and by 2019 “it was clear the government was disinclined to protect the cattle industry” from alleged packer buying practices. R-CALF alleged the practices were harming cattle producers in the group’s private antitrust lawsuit filed against the largest packers in April of that year.

R-CALF calls the White House action plan for the meat supply chain progress, but the group remains skeptical about the plan. The effort includes government funding intended to slowly rebuild the competitive marketing channels for cattle and beef, which has created what the administration calls a "bottleneck" in the nation's food supply chain. R-CALF USA CEO Bill Bullard says, "We recognize that this level of government involvement is unprecedented, and that it's critical for reversing the decades of inattention." But Bullard says his group remains skeptical about the plan's strategy for addressing decades of nonenforcement of U.S. antitrust laws and the 100-year-old Packers and Stockyards Act. R-CALF has waited for years, and by 2019 “it was clear the government was disinclined to protect the cattle industry” from alleged packer buying practices. R-CALF alleged the practices were harming cattle producers in the group’s private antitrust lawsuit filed against the largest packers in April of that year.

R-CALF recognizes progress but skeptical of White House action plan

The U.S. dairy industry celebrated a decision published Tuesday, which found Canada is improperly restricting access to its market for U.S. dairy products. The restrictions violate U.S.-Mexico Canada Agreement tariff-rate quota commitments. 

The case is the first of any kind brought before a USMCA Dispute Settlement Panel and was launched with broad bipartisan support last May. 

National Milk Producers Federation President and CEO Jim Mulhern says, "The United States and Canada negotiated specific market access terms covering a wide variety of dairy products, but instead of playing by those mutually agreed-upon rules, Canada ignored its commitments." 

TRQs are a system of tariffs negotiated between countries that allow a predetermined quantity of imports at a specified tariff rate, where that rate is often at or near zero. 

Any additional imports above that predetermined quantity are subject to significantly higher tariffs. In the case of U.S. dairy products, the additional Canadian tariffs typically price U.S. dairy products out of Canada’s market.

The U.S. dairy industry celebrated a decision published Tuesday, which found Canada is improperly restricting access to its market for U.S. dairy products. The restrictions violate U.S.-Mexico Canada Agreement tariff-rate quota commitments. The case is the first of any kind brought before a USMCA Dispute Settlement Panel and was launched with broad bipartisan support last May. National Milk Producers Federation President and CEO Jim Mulhern says, "The United States and Canada negotiated specific market access terms covering a wide variety of dairy products, but instead of playing by those mutually agreed-upon rules, Canada ignored its commitments." TRQs are a system of tariffs negotiated between countries that allow a predetermined quantity of imports at a specified tariff rate, where that rate is often at or near zero. Any additional imports above that predetermined quantity are subject to significantly higher tariffs. In the case of U.S. dairy products, the additional Canadian tariffs typically price U.S. dairy products out of Canada’s market.

U.S. dairy Calls USMCA dispute panel decision a win 

Politico reports the White House and the Environmental Protection Agency target February for the administration’s WOTUS debut. WOTUS, the Waters of the United States rule, continues its seesaw reputation since first announced during the Obama administration. 

The Trump administration overhauled the rule, and now, the Biden administration is doing the same. The EPA moved last month to formally remove the Trump-era rule, known as the Navigable Waters protection rule. 

However, the rule hasn’t been in use since a federal judge in Arizona threw it out at the end of August. The American Farm Bureau said of the Trump-era rule, that it "protects water resources, respects the law and provides greater clarity so the agencies, farmers and the public can identify regulated federal waterways.” 

EPA Administrator Michael Regan has said he sees flaws in both versions of the rule, and wants a “durable” definition. The comment period for the new rule closes on February 7, 2022.

Politico reports the White House and the Environmental Protection Agency target February for the administration’s WOTUS debut. WOTUS, the Waters of the United States rule, continues its seesaw reputation since first announced during the Obama administration. The Trump administration overhauled the rule, and now, the Biden administration is doing the same. The EPA moved last month to formally remove the Trump-era rule, known as the Navigable Waters protection rule. However, the rule hasn’t been in use since a federal judge in Arizona threw it out at the end of August. The American Farm Bureau said of the Trump-era rule, that it "protects water resources, respects the law and provides greater clarity so the agencies, farmers and the public can identify regulated federal waterways.” EPA Administrator Michael Regan has said he sees flaws in both versions of the rule, and wants a “durable” definition. The comment period for the new rule closes on February 7, 2022.

New WOTUS slated for February unveil

Farm groups mostly welcomed the Biden administration’s meat supply chain action plan Monday. American Farm Bureau Federation President Zippy Duvall says his organization “appreciates the Biden administration’s continued work to ensure a fair and competitive meat processing system.” 

The U.S. Cattlemen’s Association also welcomed the action plan, which they say will bring transparency and true price discovery to the cattle marketplace and truth in labeling through the closure of the Product of the USA loophole. 

However, the meatpacking industry disagrees. The North American Meat Institute claims the government intervention will not help consumers or producers. NAMI President Julie Anna Potts says, “The Biden Administration continues to ignore the number one challenge to meat and poultry production: labor shortages.” 

Further, the organization claims the Biden administration is “conveniently ignoring” the fact the beef industry has changed little for almost 30 years, and that prices reflect supply and demand in a healthy market.

<figure>
 <img src="https://media.eaglewebservices.com/public/2022/1/1641316095735.png" alt="Photo Courtesy of Biden Administration" />
 <figcaption>Photo Courtesy of Biden Administration</figcaption>
 </figure>Farm groups mostly welcomed the Biden administration’s meat supply chain action plan Monday. American Farm Bureau Federation President Zippy Duvall says his organization “appreciates the Biden administration’s continued work to ensure a fair and competitive meat processing system.” The U.S. Cattlemen’s Association also welcomed the action plan, which they say will bring transparency and true price discovery to the cattle marketplace and truth in labeling through the closure of the Product of the USA loophole. However, the meatpacking industry disagrees. The North American Meat Institute claims the government intervention will not help consumers or producers. NAMI President Julie Anna Potts says, “The Biden Administration continues to ignore the number one challenge to meat and poultry production: labor shortages.” Further, the organization claims the Biden administration is “conveniently ignoring” the fact the beef industry has changed little for almost 30 years, and that prices reflect supply and demand in a healthy market.

Industry reacts to meat supply chain action report

President Joe Biden and Agriculture Secretary Tom Vilsack met with farmers and ranchers at the White House Monday to announce a meat supply chain action plan. 

The plan includes four core strategies for creating a more competitive, fair, resilient meat and poultry sector, with better earnings for producers and more choices and affordable prices for consumers. 

The core strategies include expanding independent processing capacity, supporting workers at independent processors, strengthening rules to protect farmers and consumers, and promoting vigorous and fair enforcement of the existing competition laws. 

That includes issuing new and stronger rules under the Packers and Stockyards Act and new product of USA labeling rules so “consumers can better understand where their meat comes from.” The action plan includes $1 billion to expand independent processing capacity. 

The White House calls the meat and poultry processing sector a textbook example of an industry dominated by a handful of large companies, with lack of competition hurting consumers, producers, and the economy.

<figure>
 <img src="https://media.eaglewebservices.com/public/2022/1/1641315926779.png" alt="Photo Courtesy of Biden Administration" />
 <figcaption>Photo Courtesy of Biden Administration</figcaption>
 </figure>President Joe Biden and Agriculture Secretary Tom Vilsack met with farmers and ranchers at the White House Monday to announce a meat supply chain action plan. The plan includes four core strategies for creating a more competitive, fair, resilient meat and poultry sector, with better earnings for producers and more choices and affordable prices for consumers. The core strategies include expanding independent processing capacity, supporting workers at independent processors, strengthening rules to protect farmers and consumers, and promoting vigorous and fair enforcement of the existing competition laws. That includes issuing new and stronger rules under the Packers and Stockyards Act and new product of USA labeling rules so “consumers can better understand where their meat comes from.” The action plan includes $1 billion to expand independent processing capacity. The White House calls the meat and poultry processing sector a textbook example of an industry dominated by a handful of large companies, with lack of competition hurting consumers, producers, and the economy.

Biden announces meat supply chain action plan

WASHINGTON (AP) — President Joe Biden met virtually with independent farmers and ranchers on Monday to discuss initiatives to reduce&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-lifestyle-health-business-poland-f559465c6a822d12b2dd513f122d5a31">food prices</a>&nbsp;by increasing competition within the meat industry, part of a broader effort to show his administration is trying to&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-joe-biden-health-business-richard-nixon-ae06d5cccf066239f9aa7f06491c7698">combat inflation</a>.

“Capitalism without competition isn’t capitalism — it’s exploitation,” Biden said.

Higher-than-expected inflation has thwarted Biden’s agenda, hurt his public approval rating, become fodder for Republican attacks and prompted&nbsp;<a href="https://apnews.com/article/manchin-rejects-biden-spending-bill-democrats-election-e7a0ca4c25c686e91cb21e166c44821b">Sen. Joe Manchin, D-W.Va.</a>, to cite higher prices as a reason to sideline the Democratic president’s tax, social and economic programs. In November, consumer prices&nbsp;<a href="https://apnews.com/article/latest-inflation-numbers-consumer-prices-616055db3bf67691b4fdc0015fc00783">rose 6.8%</a>&nbsp;over the prior 12 months — a 39-year high.

On food costs, Biden is building off a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/" target="_blank">July executive order</a>&nbsp;that directed the Agriculture Department to more aggressively look at possible violations of the 1921 Packers and Stockyards Act, which was designed to ensure fair competition and protect consumers. Meat prices have climbed 16% from a year ago, with beef prices up 20.9%.

The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic.

The administration is targeting meat processing plants, which can shape the prices paid to farmers and charged to consumers. The White House issued a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/01/03/fact-sheet-the-biden-harris-action-plan-for-a-fairer-more-competitive-and-more-resilient-meat-and-poultry-supply-chain/" target="_blank">fact sheet</a>&nbsp;saying that the top four companies control 85% of the beef market. In poultry, the biggest four processing firms control 54% of the market. And for pork, the figure is 70% for the four biggest firms.

Many industry groups are pushing back against the administration’s planned oversight of the food industry.

Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said the coronavirus and higher costs for energy and labor are driving meat prices higher, not the corporate structure of the industry.

Bradley said the administration is practicing politics instead of economics and “government intervention would likely further constrain supply and push prices even higher.”

Mike Brown, president of the National Chicken Council, said, “This looks like a solution in search of a problem.” He said the administration is using the food industry as a “scapegoat for the significant challenges facing our economy. ”

Biden outlined plans to distribute $1 billion from the&nbsp;<a href="https://apnews.com/article/house-vote-coronavirus-relief-package-33f4902ca9a2aed4e76274af6bb2ea5c">coronavirus relief package</a>&nbsp;to help independent meat processors expand. He also highlighted money to train workers in the industry and improve conditions, as well as issue new rules for meatpackers and labeling requirements for being designated a “Product of USA.”

The Justice Department and the Agriculture Department will launch a joint effort to make it easier to report anti-competitive actions to the government. The administration will also seek to improve the transparency of the cattle market, with Biden saying, “A free market isn’t truly free without transparency around prices.”

The effort is part of a broader attempt to regain control of America’s economic narrative. Besides inflation, the repeated&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-lifestyle-health-travel-80caac77e0cfed7e0e08cfa024ed3a9b">waves of coronavirus outbreak</a>&nbsp;have dampened people’s opinions about the economy despite&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-economy-gross-domestic-product-119b8182404771d0362da6d0d49891c0">strong growth</a>&nbsp;over the past year.

Biden will have an opportunity to highlight the economy’s strengths with the December jobs report being released Friday. Economists surveyed by FactSet expect that the United States added 362,000 jobs last month with the unemployment rate ticking down to 4.1%. Gains of that magnitude would indicate that the U.S. added roughly 6.5 million jobs last year, more than in any other previous year in a reflection of population growth and government spending.

<figure>
 <img src="https://media.eaglewebservices.com/public/2022/1/1641245951468.png" alt="The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic-White House photo" />
 <figcaption>The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic-White House photo</figcaption>
 </figure>WASHINGTON (AP) — President Joe Biden met virtually with independent farmers and ranchers on Monday to discuss initiatives to reduce&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-lifestyle-health-business-poland-f559465c6a822d12b2dd513f122d5a31">food prices</a>&nbsp;by increasing competition within the meat industry, part of a broader effort to show his administration is trying to&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-joe-biden-health-business-richard-nixon-ae06d5cccf066239f9aa7f06491c7698">combat inflation</a>.<div><iframe src="https://www.facebook.com/plugins/video.php?height=314&href=https%3A%2F%2Fwww.facebook.com%2FWhiteHouse%2Fvideos%2F1615116315497364%2F&show_text=true&width=560&t=70" width="560" height="429" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share" allowFullScreen="true"></iframe></div>“Capitalism without competition isn’t capitalism — it’s exploitation,” Biden said.Higher-than-expected inflation has thwarted Biden’s agenda, hurt his public approval rating, become fodder for Republican attacks and prompted&nbsp;<a href="https://apnews.com/article/manchin-rejects-biden-spending-bill-democrats-election-e7a0ca4c25c686e91cb21e166c44821b">Sen. Joe Manchin, D-W.Va.</a>, to cite higher prices as a reason to sideline the Democratic president’s tax, social and economic programs. In November, consumer prices&nbsp;<a href="https://apnews.com/article/latest-inflation-numbers-consumer-prices-616055db3bf67691b4fdc0015fc00783">rose 6.8%</a>&nbsp;over the prior 12 months — a 39-year high.On food costs, Biden is building off a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/" target="_blank">July executive order</a>&nbsp;that directed the Agriculture Department to more aggressively look at possible violations of the 1921 Packers and Stockyards Act, which was designed to ensure fair competition and protect consumers. Meat prices have climbed 16% from a year ago, with beef prices up 20.9%.The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic.The administration is targeting meat processing plants, which can shape the prices paid to farmers and charged to consumers. The White House issued a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/01/03/fact-sheet-the-biden-harris-action-plan-for-a-fairer-more-competitive-and-more-resilient-meat-and-poultry-supply-chain/" target="_blank">fact sheet</a>&nbsp;saying that the top four companies control 85% of the beef market. In poultry, the biggest four processing firms control 54% of the market. And for pork, the figure is 70% for the four biggest firms.Many industry groups are pushing back against the administration’s planned oversight of the food industry.Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said the coronavirus and higher costs for energy and labor are driving meat prices higher, not the corporate structure of the industry.Bradley said the administration is practicing politics instead of economics and “government intervention would likely further constrain supply and push prices even higher.”Mike Brown, president of the National Chicken Council, said, “This looks like a solution in search of a problem.” He said the administration is using the food industry as a “scapegoat for the significant challenges facing our economy. ”Biden outlined plans to distribute $1 billion from the&nbsp;<a href="https://apnews.com/article/house-vote-coronavirus-relief-package-33f4902ca9a2aed4e76274af6bb2ea5c">coronavirus relief package</a>&nbsp;to help independent meat processors expand. He also highlighted money to train workers in the industry and improve conditions, as well as issue new rules for meatpackers and labeling requirements for being designated a “Product of USA.”The Justice Department and the Agriculture Department will launch a joint effort to make it easier to report anti-competitive actions to the government. The administration will also seek to improve the transparency of the cattle market, with Biden saying, “A free market isn’t truly free without transparency around prices.”The effort is part of a broader attempt to regain control of America’s economic narrative. Besides inflation, the repeated&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-lifestyle-health-travel-80caac77e0cfed7e0e08cfa024ed3a9b">waves of coronavirus outbreak</a>&nbsp;have dampened people’s opinions about the economy despite&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-economy-gross-domestic-product-119b8182404771d0362da6d0d49891c0">strong growth</a>&nbsp;over the past year.Biden will have an opportunity to highlight the economy’s strengths with the December jobs report being released Friday. Economists surveyed by FactSet expect that the United States added 362,000 jobs last month with the unemployment rate ticking down to 4.1%. Gains of that magnitude would indicate that the U.S. added roughly 6.5 million jobs last year, more than in any other previous year in a reflection of population growth and government spending.___

🎥 Biden talks with farmers, ranchers on reducing food prices

The first week of the new year could be a big one for several agricultural groups and stakeholders. 

The Supreme Court will likely hear several high-stakes cases that could affect America’s farmers and ranchers. 

A DTN report says the court recently distributed three of four agriculture cases scheduled for a January 7 conference. 

Those high-profile petitions include challenges to California’s Prop 12, an appeals court ruling that eliminated year-round E15 ethanol, and a long-fought Clean Water Act case dealing with Environmental Protection Agency authority over farmers and ranchers. 

Bayer has also filed a court petition on the Roundup settlement case that’s worth many millions of dollars. 

While the case hasn’t yet been distributed for a Supreme Court conference, the court recently invited the U.S. Solicitor General to file a brief in the case, asking for more information. Justices hold a conference every Friday during their session to decide what petitions they’ll accept.

The first week of the new year could be a big one for several agricultural groups and stakeholders. The Supreme Court will likely hear several high-stakes cases that could affect America’s farmers and ranchers. A DTN report says the court recently distributed three of four agriculture cases scheduled for a January 7 conference. Those high-profile petitions include challenges to California’s Prop 12, an appeals court ruling that eliminated year-round E15 ethanol, and a long-fought Clean Water Act case dealing with Environmental Protection Agency authority over farmers and ranchers. Bayer has also filed a court petition on the Roundup settlement case that’s worth many millions of dollars. While the case hasn’t yet been distributed for a Supreme Court conference, the court recently invited the U.S. Solicitor General to file a brief in the case, asking for more information. Justices hold a conference every Friday during their session to decide what petitions they’ll accept.

Agriculture waits for big decisions on Supreme Court cases

The new year will see inflation rates that will continue to impact the food industry and cause prices to rise at grocery stores across the country. Research firm IRI says food prices are estimated to rise by five percent during the first half of 2022. 

However, the level of increases will depend on each grocery store and its location. The IRI report says price increases are showing up in everyday items like breakfast meats, frozen poultry, and pet food. 

Prices of produce like potatoes and celery are expected to increase because of higher freight costs. Fortune.com says other factors contributing to the jump in the price of food are higher oil prices and companies that have to pass on the cost of more expensive transportation. 

Major food distribution companies recently announced price hikes heading into 2022. General Mills, Kraft Heinz, and others are raising prices on candy, cereal, Jell-O, and many other products.

The new year will see inflation rates that will continue to impact the food industry and cause prices to rise at grocery stores across the country. Research firm IRI says food prices are estimated to rise by five percent during the first half of 2022. However, the level of increases will depend on each grocery store and its location. The IRI report says price increases are showing up in everyday items like breakfast meats, frozen poultry, and pet food. Prices of produce like potatoes and celery are expected to increase because of higher freight costs. Fortune.com says other factors contributing to the jump in the price of food are higher oil prices and companies that have to pass on the cost of more expensive transportation. Major food distribution companies recently announced price hikes heading into 2022. General Mills, Kraft Heinz, and others are raising prices on candy, cereal, Jell-O, and many other products.

The price of food in 2022

The Energy Information Administration says ethanol output rose slightly week-to-week while stockpiles declined. Production of the biofuel increased to an average of 1.059 million barrels a day during the week ending on December 24. 

That’s up from an average of 1.051 million barrels a day during the previous week. In the Midwest, which is by far the biggest-producing region, output increased to an average of 1.001 million barrels per day, up from 991 million barrels a week earlier. 

That was where all the gains took place as East Coast and West Coast production remained at 12,000 barrels a day and 10,000 barrels, respectively. Production in the Rocky Mountain and Gulf Coast regions dropped to 23,000 barrels a day and 13,000 barrels, respectively.&nbsp;&nbsp;

Ethanol inventories during the week ending on December 24 fell to 20.76 million barrels, down from 20.705 million the week before. That’s the lowest level since the week ending on December 3.

The Energy Information Administration says ethanol output rose slightly week-to-week while stockpiles declined. Production of the biofuel increased to an average of 1.059 million barrels a day during the week ending on December 24. That’s up from an average of 1.051 million barrels a day during the previous week. In the Midwest, which is by far the biggest-producing region, output increased to an average of 1.001 million barrels per day, up from 991 million barrels a week earlier. That was where all the gains took place as East Coast and West Coast production remained at 12,000 barrels a day and 10,000 barrels, respectively. Production in the Rocky Mountain and Gulf Coast regions dropped to 23,000 barrels a day and 13,000 barrels, respectively.&nbsp;&nbsp;Ethanol inventories during the week ending on December 24 fell to 20.76 million barrels, down from 20.705 million the week before. That’s the lowest level since the week ending on December 3.

Ethanol production rises slightly

New York will soon be the biggest state to require biodiesel to be blended into its heating oil. Recent legislation says that starting in July 2022, petroleum-based heating oil sold in the state will get blended with increasing amounts of biodiesel. 

The goal of the move is to help New York get to its goal of lowering greenhouse gas emissions.&nbsp;&nbsp;Biodiesel industry advocates estimate that the fuel will cut New York’s annual petroleum diesel consumption by about 200 million gallons every year. 

That will drop the state’s annual carbon emissions by roughly one million metric tons. New York’s governor says the bill is a step toward meeting the goals of the state’s Climate Leadership and Community Protection Act. 

All heating oil sold in New York must have at least five percent biodiesel by July 1, 10 percent by 2025, and 20 percent by 2030. Blending requirements are already in effect in Long Island and New York City.

New York will soon be the biggest state to require biodiesel to be blended into its heating oil. Recent legislation says that starting in July 2022, petroleum-based heating oil sold in the state will get blended with increasing amounts of biodiesel. The goal of the move is to help New York get to its goal of lowering greenhouse gas emissions.&nbsp;&nbsp;Biodiesel industry advocates estimate that the fuel will cut New York’s annual petroleum diesel consumption by about 200 million gallons every year. That will drop the state’s annual carbon emissions by roughly one million metric tons. New York’s governor says the bill is a step toward meeting the goals of the state’s Climate Leadership and Community Protection Act. All heating oil sold in New York must have at least five percent biodiesel by July 1, 10 percent by 2025, and 20 percent by 2030. Blending requirements are already in effect in Long Island and New York City.

New York will require biofuel blending in heating oil

The Chinese government considering safety approval for more genetically modified corn varieties put out by its domestic producers. Bloomberg says that could lead to planting more of these crops within the world’s top corn buyer. 

China’s agriculture ministry is looking for public opinion on the safety approval of three GMO corn varieties and seven new GMO cotton strains. Beijing allows imports of GMO crops for processing, and they can’t be used as seeds. 

Genetically modified crops are grown by many of the world’s top crop producers, including the U.S., Brazil, and Argentina. Other countries limit their use due to health and environmental concerns. 

China’s move comes as the country has bought large amount of grain supplies from around the globe to feed their hog herd, which is still recovering from African Swine Fever. Beijing focused more on its own food security through the past year, including more self-sufficiency in staple grains.

The Chinese government considering safety approval for more genetically modified corn varieties put out by its domestic producers. Bloomberg says that could lead to planting more of these crops within the world’s top corn buyer. China’s agriculture ministry is looking for public opinion on the safety approval of three GMO corn varieties and seven new GMO cotton strains. Beijing allows imports of GMO crops for processing, and they can’t be used as seeds. Genetically modified crops are grown by many of the world’s top crop producers, including the U.S., Brazil, and Argentina. Other countries limit their use due to health and environmental concerns. China’s move comes as the country has bought large amount of grain supplies from around the globe to feed their hog herd, which is still recovering from African Swine Fever. Beijing focused more on its own food security through the past year, including more self-sufficiency in staple grains.

China to approve domestic GMO corn varieties

U.S. farmland supply-and-demand is different than in recent years. As commodity prices rose this year and investor interest returned to the market, the supply of available farmland followed suit. 

Randy Dickhut of Farmers National Company tells Ag Web Dot Com that over the past year, most of the Grain Belt saw increasing amounts of land getting sold. 

“A number of states saw at least a 10 percent rise in the number of transactions,” Dickhut says. 

Schrader Real Estate and Auction company tells Ag Web that his firm had twice as many sales above $10,000 an acre as they did in 2019. This year saw 60 percent more sales above $10,000 per acre than they did last year. 

Dickhut says if the factors supporting land prices stay pointed in the same direction, the market should stay firm and may even climb somewhat higher. “Things could change if those factors change, or unexpected events take place,” Dickhut says.

U.S. farmland supply-and-demand is different than in recent years. As commodity prices rose this year and investor interest returned to the market, the supply of available farmland followed suit. Randy Dickhut of Farmers National Company tells Ag Web Dot Com that over the past year, most of the Grain Belt saw increasing amounts of land getting sold. “A number of states saw at least a 10 percent rise in the number of transactions,” Dickhut says. Schrader Real Estate and Auction company tells Ag Web that his firm had twice as many sales above $10,000 an acre as they did in 2019. This year saw 60 percent more sales above $10,000 per acre than they did last year. Dickhut says if the factors supporting land prices stay pointed in the same direction, the market should stay firm and may even climb somewhat higher. “Things could change if those factors change, or unexpected events take place,” Dickhut says.

Farmland prices in 2022

The Wall Street Journal says farmers plan to plant more corn, soybeans, and wheat than last year, but they also face more uncertainty. 

The Wall Street Journal says a banner year for grain prices has U.S. farmers planting even more commodities than they did last year. 

However, high fertilizer prices, forecasts for more weather challenges, and the threat of China slowing its demand for global commodities may put a damper on the anticipation. 

“Row crops this year soared to highs not seen in years,” the Wall Street Journal article says. “Those highs came about because of surging global demand and inflation, so farmers will likely increase planting as they try to sustain the momentum of 2021.” 

However, analysts and investors say geopolitics may bring more volatility to prices next year. The biggest potential disruptions to international trade include U.S. and China tensions and the Russian troop buildup near Ukraine’s border.

The Wall Street Journal says farmers plan to plant more corn, soybeans, and wheat than last year, but they also face more uncertainty. The Wall Street Journal says a banner year for grain prices has U.S. farmers planting even more commodities than they did last year. However, high fertilizer prices, forecasts for more weather challenges, and the threat of China slowing its demand for global commodities may put a damper on the anticipation. “Row crops this year soared to highs not seen in years,” the Wall Street Journal article says. “Those highs came about because of surging global demand and inflation, so farmers will likely increase planting as they try to sustain the momentum of 2021.” However, analysts and investors say geopolitics may bring more volatility to prices next year. The biggest potential disruptions to international trade include U.S. and China tensions and the Russian troop buildup near Ukraine’s border.

More planting, more uncertainty ahead

The University of Illinois’ Department of Agricultural and Consumer Economics set its corn and soybean break-even prices for 2022. 

Break-even prices farmers need to reach to cover their total cost of production are projected at $4.73 a bushel for corn and $11.06 a bushel for soybeans. These break-even prices are quite high compared to historical levels. 

From 2013 to 2021, actual break-even prices for corn averaged $4.00 a bushel, well below the 2022 projected level. 

The break-even prices for soybeans averaged $8.92 a bushel, well below the 2022 level.&nbsp;&nbsp;While many recent bids were above break-even levels, the higher break-evens present a risk in 2022 as corn and soybean production costs will increase to record levels. 

The factors pushing costs higher include high commodity prices, inflation pressures, and supply disruptions. By far, the input with the biggest cost increase will be fertilizer. The University of Illinois says commodity pricing some grain at current levels would be prudent.

The University of Illinois’ Department of Agricultural and Consumer Economics set its corn and soybean break-even prices for 2022. Break-even prices farmers need to reach to cover their total cost of production are projected at $4.73 a bushel for corn and $11.06 a bushel for soybeans. These break-even prices are quite high compared to historical levels. From 2013 to 2021, actual break-even prices for corn averaged $4.00 a bushel, well below the 2022 projected level. The break-even prices for soybeans averaged $8.92 a bushel, well below the 2022 level.&nbsp;&nbsp;While many recent bids were above break-even levels, the higher break-evens present a risk in 2022 as corn and soybean production costs will increase to record levels. The factors pushing costs higher include high commodity prices, inflation pressures, and supply disruptions. By far, the input with the biggest cost increase will be fertilizer. The University of Illinois says commodity pricing some grain at current levels would be prudent.

U of Illinois sees higher corn and soybean break-even prices

The USDA says the Consumer Price Index for Food moved higher in November, rising 0.5 percent from October to reach levels that are 6.1 percent higher than November 2020. 

The level of food price inflation varies depending on whether the food was purchased for consumption at home or away from home. 

The food-away-from-home, or restaurant purchases, CPI increased 0.6 percent in November 2021 and was 5.8 percent higher than November of last year. The food-at-home, or grocery store purchases, CPI increased 0.3 percent from October to November and was 6.4 percent higher than November 2020. 

So far this year, the year-to-date average food-at-home prices have increased 3.1 percent and food-away-from-home prices increased by 4.2 percent. 

The all-food Consumer Price Index combined to jump by an average of 3.6 percent. The beef and veal category had the biggest relative price increase of 8.7 percent. The vegetable category saw the smallest jump at 0.9 percent.

The USDA says the Consumer Price Index for Food moved higher in November, rising 0.5 percent from October to reach levels that are 6.1 percent higher than November 2020. The level of food price inflation varies depending on whether the food was purchased for consumption at home or away from home. The food-away-from-home, or restaurant purchases, CPI increased 0.6 percent in November 2021 and was 5.8 percent higher than November of last year. The food-at-home, or grocery store purchases, CPI increased 0.3 percent from October to November and was 6.4 percent higher than November 2020. So far this year, the year-to-date average food-at-home prices have increased 3.1 percent and food-away-from-home prices increased by 4.2 percent. The all-food Consumer Price Index combined to jump by an average of 3.6 percent. The beef and veal category had the biggest relative price increase of 8.7 percent. The vegetable category saw the smallest jump at 0.9 percent.

Price of food moves higher in November

A recent Bloomberg report says China, which consumes half the world’s pork, has a goal to be mostly self-sufficient in pork production. That means it will need more grain imports to feed the world’s biggest pig herd. 

China’s agriculture ministry says the country will maintain a target to produce 95 percent of their protein at home by 2025. It wants to be self-sufficient in poultry and eggs, 85 percent for beef and mutton, and 70 percent for dairy. 

Farm Policy News says the targets will likely bolster overseas purchases of soybeans and feed grains needed to fatten hogs, cattle, and poultry. China is already the world’s largest importer of soybeans and corn. 

The Asian nation has been purchasing unprecedented amounts in the past two years to help feed a hog herd recovering from Swine Fever. China’s president Xi Jinping recently urged his country to protect farmland and expand soybean and oil crops planting.

A recent Bloomberg report says China, which consumes half the world’s pork, has a goal to be mostly self-sufficient in pork production. That means it will need more grain imports to feed the world’s biggest pig herd. China’s agriculture ministry says the country will maintain a target to produce 95 percent of their protein at home by 2025. It wants to be self-sufficient in poultry and eggs, 85 percent for beef and mutton, and 70 percent for dairy. Farm Policy News says the targets will likely bolster overseas purchases of soybeans and feed grains needed to fatten hogs, cattle, and poultry. China is already the world’s largest importer of soybeans and corn. The Asian nation has been purchasing unprecedented amounts in the past two years to help feed a hog herd recovering from Swine Fever. China’s president Xi Jinping recently urged his country to protect farmland and expand soybean and oil crops planting.

China’s pork production increases mean more grain imports

Kansas City Southern says its sale to Canadian Pacific Railway is officially complete. The deal is estimated to be worth $31 billion. CP President and CEO Keith Creel says it’s a historic day for both companies. 

“CPKC will become the backbone connecting our customers to new markets, enhancing competition in the U.S. rail network, and driving economic growth across North America,” Creel says. 

“All of this happens while we will deliver significant environmental benefits. We’re excited to be on a path to creating a truly unique North American railroad.” The Kansas City Southern board of directors and management team says they are proud of the countless contributions and achievements of all those who work for KCS. 

A company statement says, “We are excited for the possibilities that open to us through this combination with CP and look forward to the next chapter.” The companies await approval from the Surface Transportation Board allowing CP’s control of KCS railroads.

Kansas City Southern says its sale to Canadian Pacific Railway is officially complete. The deal is estimated to be worth $31 billion. CP President and CEO Keith Creel says it’s a historic day for both companies. “CPKC will become the backbone connecting our customers to new markets, enhancing competition in the U.S. rail network, and driving economic growth across North America,” Creel says. “All of this happens while we will deliver significant environmental benefits. We’re excited to be on a path to creating a truly unique North American railroad.” The Kansas City Southern board of directors and management team says they are proud of the countless contributions and achievements of all those who work for KCS. A company statement says, “We are excited for the possibilities that open to us through this combination with CP and look forward to the next chapter.” The companies await approval from the Surface Transportation Board allowing CP’s control of KCS railroads.

Kansas City Southern Railroad sale completed

As of December 1, U.S. farms held 74.2 million hogs and pigs, a four percent drop from the same time in 2020. It’s also a one percent drop from September 1, 2021. 

Those numbers come from the latest Quarterly Hogs and Pigs Report published by the National Agricultural Statistics Service. Of those 74.2 million hogs and pigs, 68 million were market hogs, and just over six million were kept for breeding. 

Between September and November of this year, U.S. farmers weaned 33.7 million pigs, down four percent from the same period in 2020. Hog producers also weaned an average of 11.19 pigs per litter. 

U.S. hog producers intend to have 2.94 million sows farrow between December 2021 and February 2022. They’ll also have just over three million sows farrow from March to May 2022. Iowa had the largest inventory among the states at 23.8 million head, followed by Minnesota at 8.9 million.

As of December 1, U.S. farms held 74.2 million hogs and pigs, a four percent drop from the same time in 2020. It’s also a one percent drop from September 1, 2021. Those numbers come from the latest Quarterly Hogs and Pigs Report published by the National Agricultural Statistics Service. Of those 74.2 million hogs and pigs, 68 million were market hogs, and just over six million were kept for breeding. Between September and November of this year, U.S. farmers weaned 33.7 million pigs, down four percent from the same period in 2020. Hog producers also weaned an average of 11.19 pigs per litter. U.S. hog producers intend to have 2.94 million sows farrow between December 2021 and February 2022. They’ll also have just over three million sows farrow from March to May 2022. Iowa had the largest inventory among the states at 23.8 million head, followed by Minnesota at 8.9 million.

U.S. hog inventory down four percent

After already struggling with drought, California farmers have lost big overseas sales numbers because of a serious shortage of shipping containers brought on by COVID-19. 

A study from the University of California-Davis says the state’s farm belt lost $2.1 billion in exports during a five-month stretch this year because of “containergeddon.” 

A University of Connecticut study says the supply chain mess tying up world commerce has caused California growers 17 percent of their export sales from May to September. 

California nut tree farmers lost big, with estimates at $520 million, followed by the wine industry at $250 million and rice growers losing $120 million. 

Industry experts tell the Sacramento Bee that some export sales are gone and not just delayed. The tree nut market is very seasonal, with big demand at Christmas time, which is now gone for good. The U.C.-Davis report says the losses this year are larger than the financial damage done during the 2018 U.S.-China trade war.

After already struggling with drought, California farmers have lost big overseas sales numbers because of a serious shortage of shipping containers brought on by COVID-19. A study from the University of California-Davis says the state’s farm belt lost $2.1 billion in exports during a five-month stretch this year because of “containergeddon.” A University of Connecticut study says the supply chain mess tying up world commerce has caused California growers 17 percent of their export sales from May to September. California nut tree farmers lost big, with estimates at $520 million, followed by the wine industry at $250 million and rice growers losing $120 million. Industry experts tell the Sacramento Bee that some export sales are gone and not just delayed. The tree nut market is very seasonal, with big demand at Christmas time, which is now gone for good. The U.C.-Davis report says the losses this year are larger than the financial damage done during the 2018 U.S.-China trade war.

CA farmers lose billions over supply chain challenges

American ethanol inventories took a surprising drop last week while production also fell. The Energy Information Administration says U.S. ethanol inventories totaled 20.7 million barrels during the week ending on December 17. 

That’s a drop of almost 200,000 barrels from the prior week. Dow Jones industrial analysts did a recent survey that found stocks forecast to rise anywhere from 200,000 barrels to over 300,000 barrels. 

Daily production also dropped during the week, with production down by 36,000 barrels per day to 1.05 million a day. Analysts had expected production to rise slightly from the previous week. 

The Midwest is by far the largest producing region in the country, but output still fell to 991,000 barrels a day, on average, from 1.025 million barrels the previous week.&nbsp;&nbsp;Output for the week ending December 17 was the lowest total in three weeks. Inventories were down narrowly, falling to 20.705 million barrels, down from 20.88 million barrels the previous week.

American ethanol inventories took a surprising drop last week while production also fell. The Energy Information Administration says U.S. ethanol inventories totaled 20.7 million barrels during the week ending on December 17. That’s a drop of almost 200,000 barrels from the prior week. Dow Jones industrial analysts did a recent survey that found stocks forecast to rise anywhere from 200,000 barrels to over 300,000 barrels. Daily production also dropped during the week, with production down by 36,000 barrels per day to 1.05 million a day. Analysts had expected production to rise slightly from the previous week. The Midwest is by far the largest producing region in the country, but output still fell to 991,000 barrels a day, on average, from 1.025 million barrels the previous week.&nbsp;&nbsp;Output for the week ending December 17 was the lowest total in three weeks. Inventories were down narrowly, falling to 20.705 million barrels, down from 20.88 million barrels the previous week.

Ethanol stocks unexpectedly decline

A three-judge panel unanimously dismissed a challenge to the North Carolina “Right to Farm” Act. 

National Hog Farmer says the challenge got brought by the Rural Empowerment Association for Community Help, North Carolina Environmental Justice Community Action Network, and Waterkeeper Alliance in 2019. 

The ruling was similar to a decision made earlier this year by a special panel of three Superior Court Judges. In 2017, North Carolina lawmakers passed legislation to clarify and strengthen the state’s Right to Farm laws to protect and ensure farming can continue in the state. 

The Act first got passed in 1979 and then further strengthened in 2013. Legislators added more clarification in 2017 and 2018 after a federal judge allowed nuisance lawsuits to get filed against swine farms in federal court.&nbsp;&nbsp;

This case got brought against the Right to Farm Act as a whole, so there is a possibility it could get challenged again in the future over a specific incident.

A three-judge panel unanimously dismissed a challenge to the North Carolina “Right to Farm” Act. National Hog Farmer says the challenge got brought by the Rural Empowerment Association for Community Help, North Carolina Environmental Justice Community Action Network, and Waterkeeper Alliance in 2019. The ruling was similar to a decision made earlier this year by a special panel of three Superior Court Judges. In 2017, North Carolina lawmakers passed legislation to clarify and strengthen the state’s Right to Farm laws to protect and ensure farming can continue in the state. The Act first got passed in 1979 and then further strengthened in 2013. Legislators added more clarification in 2017 and 2018 after a federal judge allowed nuisance lawsuits to get filed against swine farms in federal court.&nbsp;&nbsp;This case got brought against the Right to Farm Act as a whole, so there is a possibility it could get challenged again in the future over a specific incident.

N.C. “Right to Farm” Act upheld in Court of Appeals

Following approval by the Massachusetts Legislature, Governor Charlie Baker Wednesday signed into law a measure delaying implementation of the state's Question 3 initiative. 

Delayed until August 15, 2022, the 2016 ballot initiative, like California’s Proposition 12, will ban the sale of pork from hogs born to sows housed in pens that don’t comply with Massachusetts’ new standards. 

It applies to any uncooked pork sold in the state, whether it’s produced there or outside its borders. Nearly all pork currently produced in the United States fails to meet Massachusetts’ arbitrary standards. 

National Pork Producers Council President Jen Sorenson says, "Question 3, like Prop. 12, lacks any scientific, technical or agricultural basis and only will inflict economic harm on America's pork producers." 

In addition to delaying the initiative's implementation, the compromise measure requires the Massachusetts Department of Agricultural Resources to write rules and regulations for the law, in consultation with the state's attorney general within six months.

Following approval by the Massachusetts Legislature, Governor Charlie Baker Wednesday signed into law a measure delaying implementation of the state's Question 3 initiative. Delayed until August 15, 2022, the 2016 ballot initiative, like California’s Proposition 12, will ban the sale of pork from hogs born to sows housed in pens that don’t comply with Massachusetts’ new standards. It applies to any uncooked pork sold in the state, whether it’s produced there or outside its borders. Nearly all pork currently produced in the United States fails to meet Massachusetts’ arbitrary standards. National Pork Producers Council President Jen Sorenson says, "Question 3, like Prop. 12, lacks any scientific, technical or agricultural basis and only will inflict economic harm on America's pork producers." In addition to delaying the initiative's implementation, the compromise measure requires the Massachusetts Department of Agricultural Resources to write rules and regulations for the law, in consultation with the state's attorney general within six months.

Massachusetts delays effective date of Question 3

Several of the country's leading agricultural cooperatives are mobilizing to support communities impacted by severe weather that swept the South and Midwest this month. 

AgFirst, CoBank, Farm Credit East, Farm Credit Illinois, Farm Credit Mid-America, Farm Credit Services of America, Farm Credit of Western Arkansas, Land O'Lakes, and Rural 1st have committed nearly $700,000 to national, state and local charities. 

The beneficiaries are the American Red Cross, Feeding America, the Kentucky Agriculture Relief Fund, the Kentucky Rural Electric Disaster Fund, the Tennessee Farm Disaster Response Fund, the Mayfield Tornado Relief Fund, and Rotary International Dresden, Tennessee. 

Meanwhile, Tyson Foods donated $100,000 in wildfire relief to Kansas farmers and ranchers. The Kansas Livestock Foundation is accepting donations to support farmers and ranchers impacted by the fire. The fires burned an estimated 400,000 acres across four counties, a region home to several cattle suppliers for Tyson Foods.

Several of the country's leading agricultural cooperatives are mobilizing to support communities impacted by severe weather that swept the South and Midwest this month. AgFirst, CoBank, Farm Credit East, Farm Credit Illinois, Farm Credit Mid-America, Farm Credit Services of America, Farm Credit of Western Arkansas, Land O'Lakes, and Rural 1st have committed nearly $700,000 to national, state and local charities. The beneficiaries are the American Red Cross, Feeding America, the Kentucky Agriculture Relief Fund, the Kentucky Rural Electric Disaster Fund, the Tennessee Farm Disaster Response Fund, the Mayfield Tornado Relief Fund, and Rotary International Dresden, Tennessee. Meanwhile, Tyson Foods donated $100,000 in wildfire relief to Kansas farmers and ranchers. The Kansas Livestock Foundation is accepting donations to support farmers and ranchers impacted by the fire. The fires burned an estimated 400,000 acres across four counties, a region home to several cattle suppliers for Tyson Foods.

Donations announced for tornado outbreak, Kansas wildfire victims

Culver's Thank You Farmers Project has now raised more than $3.5 million since its creation in 2013. In 2021, the program raised $500,000 toward its mission of advocating for the positive impact agriculture has on the world. 

Culver's reaches the milestone at a critical time, as the rapidly growing world population places increasing reliance on a climate-smart agricultural system to produce an abundant, nutritious food supply. 

Money raised through the project directly supports people making a positive impact in the industry, including those involved with local agriculture efforts in the communities Culver's calls home and larger, national projects advancing the industry. 

Culver's also took steps in 2021 to support the creation of a more resilient and sustainable agricultural future by joining the Decade of Ag Movement. The Decade of Ag Movement is the first food and agriculture sector-wide movement to create a shared vision for a climate-smart agricultural system.

Culver's Thank You Farmers Project has now raised more than $3.5 million since its creation in 2013. In 2021, the program raised $500,000 toward its mission of advocating for the positive impact agriculture has on the world. Culver's reaches the milestone at a critical time, as the rapidly growing world population places increasing reliance on a climate-smart agricultural system to produce an abundant, nutritious food supply. Money raised through the project directly supports people making a positive impact in the industry, including those involved with local agriculture efforts in the communities Culver's calls home and larger, national projects advancing the industry. Culver's also took steps in 2021 to support the creation of a more resilient and sustainable agricultural future by joining the Decade of Ag Movement. The Decade of Ag Movement is the first food and agriculture sector-wide movement to create a shared vision for a climate-smart agricultural system.