April proved to be a solid month for U.S. beef and pork exports despite COVID-19 related interruptions in production and trade. U.S. Meat Export Federation President and CEO Dan Halstrom says, “despite these significant headwinds, global demand for U.S. beef and pork remained strong." 

Beef exports were below last April's large totals but still topped $600 million in value. Pork exports remained well above year-ago levels but slowed from the record pace established in the first quarter.&nbsp; 

While May export results will likely reflect similar obstacles, Halstrom noted that red meat production continues to recover, setting the stage for a strong second half of 2020. 

April beef exports were down six percent from a year ago to 98,600 metric tons, with value falling 11 percent to $600.9 million. For pork, April volume reached 264,000 metric tons, up 22 percent from a year ago but the lowest since November 2019. Export value was $682.8 million, up 28 percent year-over-year but the lowest since October 2019.

April proved to be a solid month for U.S. beef and pork exports despite COVID-19 related interruptions in production and trade. U.S. Meat Export Federation President and CEO Dan Halstrom says, “despite these significant headwinds, global demand for U.S. beef and pork remained strong." Beef exports were below last April's large totals but still topped $600 million in value. Pork exports remained well above year-ago levels but slowed from the record pace established in the first quarter.&nbsp; While May export results will likely reflect similar obstacles, Halstrom noted that red meat production continues to recover, setting the stage for a strong second half of 2020. April beef exports were down six percent from a year ago to 98,600 metric tons, with value falling 11 percent to $600.9 million. For pork, April volume reached 264,000 metric tons, up 22 percent from a year ago but the lowest since November 2019. Export value was $682.8 million, up 28 percent year-over-year but the lowest since October 2019.

April red meat exports weather production challenges, economic headwinds

The Environmental Protection Agency late Monday canceled the registrations for three dicamba herbicides. The move follows a Ninth Circuit Court of Appeals ruling vacating the registrations of Bayer’s XtendiMax with vapor grip technology, BASF’s Engenia, and Corteva’s FeXapan. 

The EPA says growers and commercial applicators may use existing stocks that were in their possession on June 3, 2020, the effective date of the Court decision. Such use must be consistent with the product’s previously-approved label, and may not continue after July 31, 2020. 

EPA Administrator Andrew Wheeler calls the &nbsp;action “consistent with EPA’s standard practice following registration invalidation.” He adds the court decision “has threatened the livelihood of our nation’s farmers and the global food supply.” 

Distribution or sale by any person is generally prohibited except for ensuring proper disposal or return to the registrant. The court decision and EPA action does not include Syngenta’s dicamba herbicide, called Tavium.

The Environmental Protection Agency late Monday canceled the registrations for three dicamba herbicides. The move follows a Ninth Circuit Court of Appeals ruling vacating the registrations of Bayer’s XtendiMax with vapor grip technology, BASF’s Engenia, and Corteva’s FeXapan. The EPA says growers and commercial applicators may use existing stocks that were in their possession on June 3, 2020, the effective date of the Court decision. Such use must be consistent with the product’s previously-approved label, and may not continue after July 31, 2020. EPA Administrator Andrew Wheeler calls the &nbsp;action “consistent with EPA’s standard practice following registration invalidation.” He adds the court decision “has threatened the livelihood of our nation’s farmers and the global food supply.” Distribution or sale by any person is generally prohibited except for ensuring proper disposal or return to the registrant. The court decision and EPA action does not include Syngenta’s dicamba herbicide, called Tavium.

EPA cancels Dicamba registrations

The COVID-19 pandemic and resulting stay-at-home orders have dramatically impacted Americans' food spending, according to the Department of Agriculture. 

USDA's Economic Research Service says, unlike previous economic shocks, the COVID-19 shock has led to a pronounced substitution from food away from home towards food at home. Inflation-adjusted expenditures at grocery stores and other retailers, described as food at home, were 6.5 percent higher in February 2020 compared with February 2019. 

The same spending was 18.8 percent higher in March 2020 compared with March 2019. Comparing spending for the same month accounts for seasonal food spending patterns. Inflation-adjusted February 2020 expenditures at eating-out establishments, restaurants, school cafeterias, sports venues and other places, were 39.3 percent lower than February 2019 expenditures. 

March 2020 food-away-from-home spending was 51 percent lower than March 2019 spending. During the Great Recession of 2007-09, expenditures on both food at home and food away from home decreased, with the largest decrease in February 2009.

The COVID-19 pandemic and resulting stay-at-home orders have dramatically impacted Americans' food spending, according to the Department of Agriculture. USDA's Economic Research Service says, unlike previous economic shocks, the COVID-19 shock has led to a pronounced substitution from food away from home towards food at home. Inflation-adjusted expenditures at grocery stores and other retailers, described as food at home, were 6.5 percent higher in February 2020 compared with February 2019. The same spending was 18.8 percent higher in March 2020 compared with March 2019. Comparing spending for the same month accounts for seasonal food spending patterns. Inflation-adjusted February 2020 expenditures at eating-out establishments, restaurants, school cafeterias, sports venues and other places, were 39.3 percent lower than February 2019 expenditures. March 2020 food-away-from-home spending was 51 percent lower than March 2019 spending. During the Great Recession of 2007-09, expenditures on both food at home and food away from home decreased, with the largest decrease in February 2009.

Away from home eating drops 51 percent in March

The National Cattlemen’s Beef Association applauded the introduction of the bipartisan, bicameral PASTURE Act of 2020. PASTURE stands for Pandemic Authority Suitable To Utilize Easements. The Bill was introduced in the House by Kansas Republican Roger Marshall and Minnesota Democrat Angie Craig. 

Companion legislation in the Senate was introduced by South Dakota Republican John Thune and Minnesota Democrat Tina Smith. “Yesterday’s introduction of the PASTURE Act is a welcome step toward providing grazing flexibility to livestock producers during the COVID-19 pandemic,” says Ethan Lane, the NCBA Vice President of Government Affairs. 

“As farmers and ranchers are keeping and feeding livestock for longer periods of time, Congress must ensure that producers do not face a forage shortage. Emergency haying and grazing of Conservation Reserve Program Acreage is a relied-upon practice for livestock and forage management.” 

The PASTURE Act gives USDA the ability to open up CRP acreage for emergency haying and grazing during the COVID-19 pandemic. Back in mid-May, NCBA and 35 state affiliates sent a letter to Congress urging them to take action on this issue.

The National Cattlemen’s Beef Association applauded the introduction of the bipartisan, bicameral PASTURE Act of 2020. PASTURE stands for Pandemic Authority Suitable To Utilize Easements. The Bill was introduced in the House by Kansas Republican Roger Marshall and Minnesota Democrat Angie Craig. Companion legislation in the Senate was introduced by South Dakota Republican John Thune and Minnesota Democrat Tina Smith. “Yesterday’s introduction of the PASTURE Act is a welcome step toward providing grazing flexibility to livestock producers during the COVID-19 pandemic,” says Ethan Lane, the NCBA Vice President of Government Affairs. “As farmers and ranchers are keeping and feeding livestock for longer periods of time, Congress must ensure that producers do not face a forage shortage. Emergency haying and grazing of Conservation Reserve Program Acreage is a relied-upon practice for livestock and forage management.” The PASTURE Act gives USDA the ability to open up CRP acreage for emergency haying and grazing during the COVID-19 pandemic. Back in mid-May, NCBA and 35 state affiliates sent a letter to Congress urging them to take action on this issue.

NCBA applauds emergency grazing legislation

So, where do things stand on the U.S.-Mexico-Canada Trade Agreement as it goes into effect in less than a month? Politico says North American leaders are selling USMCA as a big win that will remove uncertainty in the region. 

However, there are still some agricultural issues between the U.S. and Mexico that have to be worked out yet. Kenneth Smith Ramos, Mexico’s former chief USMCA negotiator, says Southern U.S. growers and U.S. Trade Representative Robert Lighthizer are still talking through seasonal produce concerns. 

Seasonal produce growers mainly located in Florida and Georgia have pushed for special provisions in USMCA that would allow them to more easily petition for anti-dumping or countervailing duties on Mexico, but that was left out of the final agreement. 

Still, they’re pushing for rules that would allow them to fight Mexican growers. In the meantime, Mexican officials are still concerned about talk of the U.S. doing more border inspections. Mexico agreed to increased border inspections as part of a tomato suspension agreement, but now there’s a push to extend that to other agricultural goods entering the United States.

So, where do things stand on the U.S.-Mexico-Canada Trade Agreement as it goes into effect in less than a month? Politico says North American leaders are selling USMCA as a big win that will remove uncertainty in the region. However, there are still some agricultural issues between the U.S. and Mexico that have to be worked out yet. Kenneth Smith Ramos, Mexico’s former chief USMCA negotiator, says Southern U.S. growers and U.S. Trade Representative Robert Lighthizer are still talking through seasonal produce concerns. Seasonal produce growers mainly located in Florida and Georgia have pushed for special provisions in USMCA that would allow them to more easily petition for anti-dumping or countervailing duties on Mexico, but that was left out of the final agreement. Still, they’re pushing for rules that would allow them to fight Mexican growers. In the meantime, Mexican officials are still concerned about talk of the U.S. doing more border inspections. Mexico agreed to increased border inspections as part of a tomato suspension agreement, but now there’s a push to extend that to other agricultural goods entering the United States.

Less than a month before USMCA goes into effect

The Justice Department has made a formal demand for information from the country’s four biggest meatpackers as they investigate potential antitrust violations. A Bloomberg article says that deepens the scrutiny of an industry that’s already been hit hard by plant shutdowns due to the coronavirus. 

The department’s antitrust division sent civil investigative demands, which are similar to subpoenas, to the companies. The Justice Department is also talking with state attorneys general about the probe after a group of states called for an official investigation. 

The four meatpackers that control more than 80 percent of the U.S. beef processing market include Tyson Foods, JBS, Cargill, and National Beef Incorporated. 

Their dominance in the industry has sparked concerns about their pricing power over livestock suppliers for years. 

Bloomberg says three of the companies didn’t immediately respond to a request for comment. National Beef, based in Kansas City, Missouri, confirmed they did get the civil investigative demand from the Justice Department, but they noted that ”The request is very narrow in scope, which leads us to believe that the DOJ doesn’t necessarily believe there is an antitrust issue.” 

The Justice Department subpoenas to meatpackers follow criminal charges last week against four current and former executives of chicken processing companies.

The Justice Department has made a formal demand for information from the country’s four biggest meatpackers as they investigate potential antitrust violations. A Bloomberg article says that deepens the scrutiny of an industry that’s already been hit hard by plant shutdowns due to the coronavirus. The department’s antitrust division sent civil investigative demands, which are similar to subpoenas, to the companies. The Justice Department is also talking with state attorneys general about the probe after a group of states called for an official investigation. The four meatpackers that control more than 80 percent of the U.S. beef processing market include Tyson Foods, JBS, Cargill, and National Beef Incorporated. Their dominance in the industry has sparked concerns about their pricing power over livestock suppliers for years. Bloomberg says three of the companies didn’t immediately respond to a request for comment. National Beef, based in Kansas City, Missouri, confirmed they did get the civil investigative demand from the Justice Department, but they noted that ”The request is very narrow in scope, which leads us to believe that the DOJ doesn’t necessarily believe there is an antitrust issue.” The Justice Department subpoenas to meatpackers follow criminal charges last week against four current and former executives of chicken processing companies.

Justice department subpoenas information from meatpackers

Price fixing indictments in the chicken processing sector highlights the need for greater oversight, according to the National Farmers Union. Four current and former executives at Pilgrim’s Pride Corp. and Claxton Poultry Farms, both of which produce chicken, were indicted this week for colluding to inflate the prices of birds sold to grocery stores and restaurants. 

NFU says the indictments show there is a need for greater antitrust enforcement and farmer protections. NFU President Rob Larew says price fixing is “extremely harmful” to agriculture and consumers. 

However, he says price fixing is only a symptom of the much bigger problem of corporate consolidation, and companies are only able to employ anticompetitive business practices when they’ve gathered control over their respective industries. 

Larew says price fixing can be avoided by enforcement of antitrust policy, restoring competition in the agricultural marketplace reinstatement of the Grain Inspection, Packers and Stockyards Administration and developing strong protections for farmers.

Price fixing indictments in the chicken processing sector highlights the need for greater oversight, according to the National Farmers Union. Four current and former executives at Pilgrim’s Pride Corp. and Claxton Poultry Farms, both of which produce chicken, were indicted this week for colluding to inflate the prices of birds sold to grocery stores and restaurants. NFU says the indictments show there is a need for greater antitrust enforcement and farmer protections. NFU President Rob Larew says price fixing is “extremely harmful” to agriculture and consumers. However, he says price fixing is only a symptom of the much bigger problem of corporate consolidation, and companies are only able to employ anticompetitive business practices when they’ve gathered control over their respective industries. Larew says price fixing can be avoided by enforcement of antitrust policy, restoring competition in the agricultural marketplace reinstatement of the Grain Inspection, Packers and Stockyards Administration and developing strong protections for farmers.

NFU comments on price fixing indictments

An expected warm and dry summer has the Missouri River forecast on an average path for 2020. Water releases from Gavins Point Dam will remain at 33,000 cubic feet per second in June, which is about average, according to the Army Corps of Engineers. 

May runoff in the upper basin was about 130 percent of average. However, the summer climate outlook indicates a return to warmer and drier conditions in the upper basin. Still, the 2020 calendar year upper basin runoff forecast is 32.3 million acre feet, 125 percent of average. 

The June 1 forecast is in the top 25 percent of the 122 years of runoff record. Soils are drying out in the upper Missouri River Basin, following much wetter-than-normal conditions in 2018 and 2019. 

The potential for flooding remains in the Missouri River Basin, particularly in the lower river, due to the potential for locally heavy rain and runoff. Further, levee repairs continue from flooding last spring, kicked off by the March 2019 bomb-cyclone weather event.

An expected warm and dry summer has the Missouri River forecast on an average path for 2020. Water releases from Gavins Point Dam will remain at 33,000 cubic feet per second in June, which is about average, according to the Army Corps of Engineers. May runoff in the upper basin was about 130 percent of average. However, the summer climate outlook indicates a return to warmer and drier conditions in the upper basin. Still, the 2020 calendar year upper basin runoff forecast is 32.3 million acre feet, 125 percent of average. The June 1 forecast is in the top 25 percent of the 122 years of runoff record. Soils are drying out in the upper Missouri River Basin, following much wetter-than-normal conditions in 2018 and 2019. The potential for flooding remains in the Missouri River Basin, particularly in the lower river, due to the potential for locally heavy rain and runoff. Further, levee repairs continue from flooding last spring, kicked off by the March 2019 bomb-cyclone weather event.

Warmer, drier summer makes for average Missouri River forecast

The Department of Agriculture Thursday announced the approval of more than $545 million in payments to farmers through the Coronavirus Food Assistance Program, known as CFAP. 

The Farm Service Agency began taking applications on May 26, and the agency has received more than 86,000 applications. FSA has already made payments to more than 35,000 producers. Out of the gate, the top five states for CFAP payments are Illinois, Kansas, Wisconsin, Nebraska and South Dakota. FSA will accept applications through August 28, 2020. 

Through CFAP, USDA is making available $16 billion in financial assistance to farmers and ranchers who have suffered a five-percent-or-greater price decline due to COVID-19, and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities. 

Agriculture Secretary Sonny Perdue says FSA has the resources to “complete applications as smoothly and efficiently as possible.” Producers can download the CFAP application and other eligibility forms from farmers.gov.

The Department of Agriculture Thursday announced the approval of more than $545 million in payments to farmers through the Coronavirus Food Assistance Program, known as CFAP. The Farm Service Agency began taking applications on May 26, and the agency has received more than 86,000 applications. FSA has already made payments to more than 35,000 producers. Out of the gate, the top five states for CFAP payments are Illinois, Kansas, Wisconsin, Nebraska and South Dakota. FSA will accept applications through August 28, 2020. Through CFAP, USDA is making available $16 billion in financial assistance to farmers and ranchers who have suffered a five-percent-or-greater price decline due to COVID-19, and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities. Agriculture Secretary Sonny Perdue says FSA has the resources to “complete applications as smoothly and efficiently as possible.” Producers can download the CFAP application and other eligibility forms from farmers.gov.

USDA issues first coronavirus food assistance program payments

Federal Lawmakers from Wisconsin seek answers from Agriculture Secretary Sonny Perdue for dairy farmers. In a letter this week, four legislators from Wisconsin asked how contracts are awarded through the Department of Agriculture’s Farmers to Families Food Box Program.

In May, USDA announced it was awarding $1.2 billion in contracts out of the $3 billion program, which is meant to support farmers struggling with food supply chain disruptions by purchasing agricultural products to distribute to those in need. 

However, the lawmakers say USDA has released few details regarding the awardees and the process used to determine which companies receive contracts. 

Wisconsin, one of the nation's top dairy-producing states and home to well-established dairy producers, processors, and distributors, has received less than one percent of the contracts made for dairy products through the program. 

Representative Ron Kind, a Wisconsin Democrat, says, “Our dairy farmers are the heart of our rural communities, and they deserve additional clarity and more support from USDA.”

Federal Lawmakers from Wisconsin seek answers from Agriculture Secretary Sonny Perdue for dairy farmers. In a letter this week, four legislators from Wisconsin asked how contracts are awarded through the Department of Agriculture’s Farmers to Families Food Box Program. In May, USDA announced it was awarding $1.2 billion in contracts out of the $3 billion program, which is meant to support farmers struggling with food supply chain disruptions by purchasing agricultural products to distribute to those in need. However, the lawmakers say USDA has released few details regarding the awardees and the process used to determine which companies receive contracts. Wisconsin, one of the nation's top dairy-producing states and home to well-established dairy producers, processors, and distributors, has received less than one percent of the contracts made for dairy products through the program. Representative Ron Kind, a Wisconsin Democrat, says, “Our dairy farmers are the heart of our rural communities, and they deserve additional clarity and more support from USDA.”

Lawmakers call on Secretary Perdue to provide answers for Wisconsin’s dairyland

Iowa leaders want the Department of Agriculture to include egg producers in the Coronavirus Food Assistance Program, known as CFAP. 

Both Senators from Iowa, Republicans Chuck Grassley and Joni Ernst, Along with Iowa Governor Kim Reynolds and Iowa Agriculture Secretary Mike Naig, sent the request in a letter to Agriculture Secretary Sonny Perdue. 

With nearly 70 percent of Iowa’s layer flocks producing for the liquid egg market, the COVID-19 market disruption has proved to be devastating to Iowa’s egg producers. 

Egg producers lost markets due to the closing of restaurants, schools and other egg buying businesses during the COVID-19 pandemic, as the liquid egg market saw a 68 percent price decline. 

Senator Ernst says, “These hardworking folks need relief and assistance, and that's what we're fighting for and pushing USDA to provide.” Iowa is home to more than 58 million egg-laying hens and about one in six eggs consumed in the United States each year.

Iowa leaders want the Department of Agriculture to include egg producers in the Coronavirus Food Assistance Program, known as CFAP. Both Senators from Iowa, Republicans Chuck Grassley and Joni Ernst, Along with Iowa Governor Kim Reynolds and Iowa Agriculture Secretary Mike Naig, sent the request in a letter to Agriculture Secretary Sonny Perdue. With nearly 70 percent of Iowa’s layer flocks producing for the liquid egg market, the COVID-19 market disruption has proved to be devastating to Iowa’s egg producers. Egg producers lost markets due to the closing of restaurants, schools and other egg buying businesses during the COVID-19 pandemic, as the liquid egg market saw a 68 percent price decline. Senator Ernst says, “These hardworking folks need relief and assistance, and that's what we're fighting for and pushing USDA to provide.” Iowa is home to more than 58 million egg-laying hens and about one in six eggs consumed in the United States each year.

Iowa leaders call on USDA to provide CFAP funds for egg producers

The Nutrition Coalition alleges there is a serious threat to the integrity and trustworthiness of the nation's federal nutrition policy. The coalition Wednesday released allegations made by one or more members of the Dietary Guidelines Advisory Committee, under the direction of the Department of Agriculture. 

The coalition expressed concerns about the committee's process and in particular, its review of the scientific studies underpinning what will be the next version of the Dietary Guidelines for Americans, due out at the end of this year. 

The guidelines are issued only once every five years. The allegations range from deleting scientific reviews without public notice to failing to adopt reforms mandated by the National Academies of Sciences, Engineering, and Medicine. 

The coalition claims USDA needs more time to develop the guidelines and consider more scientific evidence and reviews. Nutrition Coalition Executive Director Nina Teicholz says, “The American people deserve trustworthy nutrition policy based on a comprehensive review of the most rigorous science.”

The Nutrition Coalition alleges there is a serious threat to the integrity and trustworthiness of the nation's federal nutrition policy. The coalition Wednesday released allegations made by one or more members of the Dietary Guidelines Advisory Committee, under the direction of the Department of Agriculture. The coalition expressed concerns about the committee's process and in particular, its review of the scientific studies underpinning what will be the next version of the Dietary Guidelines for Americans, due out at the end of this year. The guidelines are issued only once every five years. The allegations range from deleting scientific reviews without public notice to failing to adopt reforms mandated by the National Academies of Sciences, Engineering, and Medicine. The coalition claims USDA needs more time to develop the guidelines and consider more scientific evidence and reviews. Nutrition Coalition Executive Director Nina Teicholz says, “The American people deserve trustworthy nutrition policy based on a comprehensive review of the most rigorous science.”

Nutrition coalition urges delay, review of dietary guidelines

Brazil, the world’s biggest beef and chicken exporter and the fourth-largest pork exporter, is now struggling with coronavirus in its meatpacking industry. 

Over 25 percent of the confirmed coronavirus cases in Brazil’s state of Rio Grande do Sul are among workers in meat plants. Meatpackers in the state employ 50,000 people. 

A statement from Brazil’s labor prosecutor says an estimated 2,399 employees from 24 slaughterhouses in 18 municipalities of the state are now confirmed. That’s a total of 25.7 percent of the 9,332 cases of confirmed coronavirus. Reuters says the findings corroborate the evidence that meatpackers have become hotspots in Brazil for the coronavirus. 

Brazil has more than half-a-million cases and nearly 30,000 deaths. Two of Brazil’s largest meatpackers own plants in Rio Grande do Sul and both of them had to temporarily close their units due to outbreaks of coronavirus. 

Around Brazil, the average number of workers per plant is approximately 2,000. Brazil’s agriculture ministry says the country has 446 meat plants, including 194 beef, 148 poultry, 90 pork plants, and 14 that process other types of meats.

Brazil, the world’s biggest beef and chicken exporter and the fourth-largest pork exporter, is now struggling with coronavirus in its meatpacking industry. Over 25 percent of the confirmed coronavirus cases in Brazil’s state of Rio Grande do Sul are among workers in meat plants. Meatpackers in the state employ 50,000 people. A statement from Brazil’s labor prosecutor says an estimated 2,399 employees from 24 slaughterhouses in 18 municipalities of the state are now confirmed. That’s a total of 25.7 percent of the 9,332 cases of confirmed coronavirus. Reuters says the findings corroborate the evidence that meatpackers have become hotspots in Brazil for the coronavirus. Brazil has more than half-a-million cases and nearly 30,000 deaths. Two of Brazil’s largest meatpackers own plants in Rio Grande do Sul and both of them had to temporarily close their units due to outbreaks of coronavirus. Around Brazil, the average number of workers per plant is approximately 2,000. Brazil’s agriculture ministry says the country has 446 meat plants, including 194 beef, 148 poultry, 90 pork plants, and 14 that process other types of meats.

Brazil meatpackers now struggling with coronavirus

The National Biodiesel Board delivered a letter to Andrew Wheeler, Environmental Protection Agency Administrator, asking for transparency on small refinery exemption petitions the agency received before 2019. 

“The U.S. biodiesel and renewable diesel industry values and relies on your commitment to transparency regarding small refinery exemptions,” says the NBB in the letter, referring to Wheeler creating the EPA Small Refinery Exemption Dashboard. 

However, both Wheeler and an Undersecretary at the U.S. Department of Energy responded to questions about “gap” petitions during Senate committee testimony. The NBB says, “it’s concerning that no record of any of these petitions exists on the Agency’s dashboard. Gap filings would render the program entirely unpredictable for renewable fuel producers.” 

Kurt Kovarik, NBB Vice President of Federal Affairs, says, “EPA’s small refinery exemption sprees over the past three years undermined the RFS and destroyed demand for hundreds of millions of gallons of biodiesel. We’re asking Administrator Wheeler to restore confidence in the RFS.”

The National Biodiesel Board delivered a letter to Andrew Wheeler, Environmental Protection Agency Administrator, asking for transparency on small refinery exemption petitions the agency received before 2019. “The U.S. biodiesel and renewable diesel industry values and relies on your commitment to transparency regarding small refinery exemptions,” says the NBB in the letter, referring to Wheeler creating the EPA Small Refinery Exemption Dashboard. However, both Wheeler and an Undersecretary at the U.S. Department of Energy responded to questions about “gap” petitions during Senate committee testimony. The NBB says, “it’s concerning that no record of any of these petitions exists on the Agency’s dashboard. Gap filings would render the program entirely unpredictable for renewable fuel producers.” Kurt Kovarik, NBB Vice President of Federal Affairs, says, “EPA’s small refinery exemption sprees over the past three years undermined the RFS and destroyed demand for hundreds of millions of gallons of biodiesel. We’re asking Administrator Wheeler to restore confidence in the RFS.”

NBB letter asks EPA for transparency on “gap” SRE petitions

Tensions are rising once again between the U.S. and Hong Kong, which in turn led the Chinese government to order state-run agricultural firms to temporarily stop buying U.S. commodities, including corn, soybeans, and cotton. Several buyers specifically canceled pork orders. 

Despite the government mandate, state-owned companies still purchased 180,000 metric tons of U.S. soybeans on Monday, with shipments due in the fall. Politico says U.S. traders note that Chinese importers still haven’t covered a large share of their October and November soybean needs. 

China was supposed to buy at least $36.5 billion in U.S. ag products this year under the phase one trade agreement. “Phase One always was on weak legs and now we’re seeing that,” says Scott Kennedy, senior adviser at the Center for Strategic and International Studies. 

“If President Trump walks away from the deal, that will make it harder for American farmers and others in the Midwest to count on exports to fuel their recovery from the coronavirus pandemic.” Kennedy also says the apparent ag import freeze could be linked to Trump’s threats to remove Hong Kong’s privileged trade status.

Tensions are rising once again between the U.S. and Hong Kong, which in turn led the Chinese government to order state-run agricultural firms to temporarily stop buying U.S. commodities, including corn, soybeans, and cotton. Several buyers specifically canceled pork orders. Despite the government mandate, state-owned companies still purchased 180,000 metric tons of U.S. soybeans on Monday, with shipments due in the fall. Politico says U.S. traders note that Chinese importers still haven’t covered a large share of their October and November soybean needs. China was supposed to buy at least $36.5 billion in U.S. ag products this year under the phase one trade agreement. “Phase One always was on weak legs and now we’re seeing that,” says Scott Kennedy, senior adviser at the Center for Strategic and International Studies. “If President Trump walks away from the deal, that will make it harder for American farmers and others in the Midwest to count on exports to fuel their recovery from the coronavirus pandemic.” Kennedy also says the apparent ag import freeze could be linked to Trump’s threats to remove Hong Kong’s privileged trade status.

China companies buying ag products despite government order to desist

The Department of Agriculture last week lowered its export forecast for fiscal year 2020. USDA’s Economic Research Service says the COVID-19 outbreak has created a shock to world economies that will cause an unusually high level of uncertainty for the foreseeable future. 

ERS projects 2020 agricultural exports at $136.5 billion, down $3.0 billion from the February forecast, primarily due to reductions in bulk commodities. 

Projections for soybean exports were reduced $1.9 billion to $16.5 billion due in part to increasingly competitive Brazilian exports. Cotton exports are forecast down $1.0 billion on lower volumes and value as the COVID-19 pandemic has reduced foreign demand. 

Corn exports were projected at $8.0 billion, down $500 million, pressured by ample exportable supplies and weak domestic use for fuel ethanol. 

The forecast for wheat exports is down $300 million to $6.1 billion. And, livestock, poultry and dairy exports are unchanged from the February projection of $32.4 billion. The forecast doesn’t take into account the recent news of China halting some purchases of U.S. agricultural products.

The Department of Agriculture last week lowered its export forecast for fiscal year 2020. USDA’s Economic Research Service says the COVID-19 outbreak has created a shock to world economies that will cause an unusually high level of uncertainty for the foreseeable future. ERS projects 2020 agricultural exports at $136.5 billion, down $3.0 billion from the February forecast, primarily due to reductions in bulk commodities. Projections for soybean exports were reduced $1.9 billion to $16.5 billion due in part to increasingly competitive Brazilian exports. Cotton exports are forecast down $1.0 billion on lower volumes and value as the COVID-19 pandemic has reduced foreign demand. Corn exports were projected at $8.0 billion, down $500 million, pressured by ample exportable supplies and weak domestic use for fuel ethanol. The forecast for wheat exports is down $300 million to $6.1 billion. And, livestock, poultry and dairy exports are unchanged from the February projection of $32.4 billion. The forecast doesn’t take into account the recent news of China halting some purchases of U.S. agricultural products.

USDA lowers ag export outlook

National gas prices rose again last week, gaining seven cents per gallon to reach $1.97. Demand continues to recover from the pandemic and stay at home orders this spring and provides some optimism to the recovery ethanol demand. 

However, GasBuddy reports the average price of diesel last week fell one cent to $2.49 a gallon. And, Patrick DeHaan of GasBuddy says, “The pace of increases has begun to throttle back over the last week in most states as gasoline demand’s recovery has slowed.” 

While crude oil prices continued their upward move over the last week, it has been a much slower rise than recent weeks. As the global economy continues a slow recovery and more countries ease up on travel restrictions, demand for oil has rebounded as supply remains lower due to the coronavirus curbing demand. 

U.S. oil inventories saw a large 7.9 million barrel boost in last week’s data from the Energy Information Administration, while gasoline inventories fell again by some 700,000 barrels and distillate inventories jumped 5.5 million barrels.

National gas prices rose again last week, gaining seven cents per gallon to reach $1.97. Demand continues to recover from the pandemic and stay at home orders this spring and provides some optimism to the recovery ethanol demand. However, GasBuddy reports the average price of diesel last week fell one cent to $2.49 a gallon. And, Patrick DeHaan of GasBuddy says, “The pace of increases has begun to throttle back over the last week in most states as gasoline demand’s recovery has slowed.” While crude oil prices continued their upward move over the last week, it has been a much slower rise than recent weeks. As the global economy continues a slow recovery and more countries ease up on travel restrictions, demand for oil has rebounded as supply remains lower due to the coronavirus curbing demand. U.S. oil inventories saw a large 7.9 million barrel boost in last week’s data from the Energy Information Administration, while gasoline inventories fell again by some 700,000 barrels and distillate inventories jumped 5.5 million barrels.

Fuel demand continues recovery

China is halting imports of some U.S. agricultural products through state-run agricultural companies. The move comes as a response to tensions between the U.S. and China regarding Hong Kong. 

Bloomberg News reports state-owned traders Cofco and Sinograin were ordered to suspend purchases. The action is the latest by China, which puts a trade agreement full of wins for U.S. agriculture in jeopardy. Last week, President Donald Trump threatened to punish China for its relations with Hong Kong. 

China responded by pausing purchases of U.S. ag products, including recent inquiries to purchase U.S. soybeans. A China Foreign Affairs spokesperson says of Trump’s comments, “the measures announced gravely interfere with China's internal affairs and undermine bilateral relations and will be detrimental to both sides.” 

However, the retaliation is likely temporary, as China will need more soybeans and pork, among other products. China was increasing purchases of U.S. ag products as the nation reopens following the coronavirus pandemic, but at a slower than expected pace to fulfill the Phase One trade agreement.

China is halting imports of some U.S. agricultural products through state-run agricultural companies. The move comes as a response to tensions between the U.S. and China regarding Hong Kong. Bloomberg News reports state-owned traders Cofco and Sinograin were ordered to suspend purchases. The action is the latest by China, which puts a trade agreement full of wins for U.S. agriculture in jeopardy. Last week, President Donald Trump threatened to punish China for its relations with Hong Kong. China responded by pausing purchases of U.S. ag products, including recent inquiries to purchase U.S. soybeans. A China Foreign Affairs spokesperson says of Trump’s comments, “the measures announced gravely interfere with China's internal affairs and undermine bilateral relations and will be detrimental to both sides.” However, the retaliation is likely temporary, as China will need more soybeans and pork, among other products. China was increasing purchases of U.S. ag products as the nation reopens following the coronavirus pandemic, but at a slower than expected pace to fulfill the Phase One trade agreement.

China halts some purchases of U.S. ag products

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.

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.

NPPC asks senate to pass ag provisions in HEROES act

Energy Information Administration data recently analyzed by the Renewable Fuels Association shows a rise in ethanol production for the week ending May 22. Production increased by 61,000 barrels a day, a nine percent increase from the previous week. 

The total production came in at 724,000 barrels a day, equivalent to 30.4 million gallons daily, and was the largest volume since March. That was good news unless it’s compared to the same time in 2019. 

COVID disruptions have tempered the production rate, which came in just over 31 percent lower than the same week last year. Still, over the past month, the four-week average ethanol production rate rose almost eight percent to 651,000 barrels per day, equivalent to an annualized rate of 9.98 billion gallons. 

Ethanol stocks continue to drop, even though it’s a slow decline. Stocks thinned out by 1.9 percent, coming in at a 19-week low of 23.2 million barrels. Inventories continue to tighten up in all the major ethanol production areas, except for the Rocky Mountains. 

Total reserves are still 2.4 percent higher than where the volume was in 2019. The volume of gasoline supplied to the U.S. market, which is considered a measure of implied demand, rebounded by 6.8 percent from the previous week but was still 23 percent lower than the same week last year.

Energy Information Administration data recently analyzed by the Renewable Fuels Association shows a rise in ethanol production for the week ending May 22. Production increased by 61,000 barrels a day, a nine percent increase from the previous week. The total production came in at 724,000 barrels a day, equivalent to 30.4 million gallons daily, and was the largest volume since March. That was good news unless it’s compared to the same time in 2019. COVID disruptions have tempered the production rate, which came in just over 31 percent lower than the same week last year. Still, over the past month, the four-week average ethanol production rate rose almost eight percent to 651,000 barrels per day, equivalent to an annualized rate of 9.98 billion gallons. Ethanol stocks continue to drop, even though it’s a slow decline. Stocks thinned out by 1.9 percent, coming in at a 19-week low of 23.2 million barrels. Inventories continue to tighten up in all the major ethanol production areas, except for the Rocky Mountains. Total reserves are still 2.4 percent higher than where the volume was in 2019. The volume of gasoline supplied to the U.S. market, which is considered a measure of implied demand, rebounded by 6.8 percent from the previous week but was still 23 percent lower than the same week last year.

U.S. ethanol production continues to slowly rebound

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.”

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.”

Growth energy celebrates the first anniversary of year-round E15

Experts are saying that the African Swine Fever outbreak that continued last year could have an even bigger impact in 2020. The Guardian says that the highly-contagious virus that is fatal to pigs is still spreading at a rapid rate. 

While human attention is on the COVID-19 outbreak, the concern is growing around the world that countries are not putting enough focus on halting the spread of ASF through better biosecurity practices, cooperating on vaccine development, or being transparent about the scope of outbreaks. 

Despite being present in the world for more than 100 years, there is still no vaccine for the disease that kills almost every animal it infects. “The ASF virus is much more potent than COVID-19 because it can survive in the environment or processed meats for weeks and months,” says Dirk Pfeiffer, a veterinary science professor at City University in Hong Kong and one of the world’s leading experts on ASF. 

The disease reached China in the fall of 2018 and unofficially led to culling more than 200 million pigs from the world’s largest hog herd. Global ASF infection numbers by the end of April showed this year is close to or above the infection numbers from 2019. 

China, Vietnam, the Philippines, and Eastern Europe are the current focal points for outbreaks, with new outbreaks showing up in India and New Guinea.

Experts are saying that the African Swine Fever outbreak that continued last year could have an even bigger impact in 2020. The Guardian says that the highly-contagious virus that is fatal to pigs is still spreading at a rapid rate. While human attention is on the COVID-19 outbreak, the concern is growing around the world that countries are not putting enough focus on halting the spread of ASF through better biosecurity practices, cooperating on vaccine development, or being transparent about the scope of outbreaks. Despite being present in the world for more than 100 years, there is still no vaccine for the disease that kills almost every animal it infects. “The ASF virus is much more potent than COVID-19 because it can survive in the environment or processed meats for weeks and months,” says Dirk Pfeiffer, a veterinary science professor at City University in Hong Kong and one of the world’s leading experts on ASF. The disease reached China in the fall of 2018 and unofficially led to culling more than 200 million pigs from the world’s largest hog herd. Global ASF infection numbers by the end of April showed this year is close to or above the infection numbers from 2019. China, Vietnam, the Philippines, and Eastern Europe are the current focal points for outbreaks, with new outbreaks showing up in India and New Guinea.

African swine fever impact even greater in 2020

The first four months of 2020 were profitable for Brazilian ag exporters. Brazil’s agricultural exports to China were worth $31.4 billion from January through April. 

MercoPress reports that it marked a 5.9 percent increase year-over-year. The growth in agricultural exports to China resulted in a more than 11 percent increase in export volume, while the index price actually suffered a drop of 4.7 percent. 

The Brazilian Department of Trade and International Relations says those sales numbers broke the record for the largest amount ever shipped between January and April. The agricultural exports accounted for almost half of the total number of Brazilian exports (46.6 percent) during the first four months of this year. 

Brazil took in $4.57 billion worth of imports, which resulted in an agribusiness trade surplus of $26.83 billion during that time. Soybean exports were big from January through April, setting records in terms of revenue worth $11.5 billion and quantity at 33.66 million tons shipped. That’s despite a 4.2 percent drop in the average price for soybeans. 

Brazil sent China a whopping 73.4 percent of its total grain exports and sold a record $2.13 billion worth of fresh beef to China.

The first four months of 2020 were profitable for Brazilian ag exporters. Brazil’s agricultural exports to China were worth $31.4 billion from January through April. MercoPress reports that it marked a 5.9 percent increase year-over-year. The growth in agricultural exports to China resulted in a more than 11 percent increase in export volume, while the index price actually suffered a drop of 4.7 percent. The Brazilian Department of Trade and International Relations says those sales numbers broke the record for the largest amount ever shipped between January and April. The agricultural exports accounted for almost half of the total number of Brazilian exports (46.6 percent) during the first four months of this year. Brazil took in $4.57 billion worth of imports, which resulted in an agribusiness trade surplus of $26.83 billion during that time. Soybean exports were big from January through April, setting records in terms of revenue worth $11.5 billion and quantity at 33.66 million tons shipped. That’s despite a 4.2 percent drop in the average price for soybeans. Brazil sent China a whopping 73.4 percent of its total grain exports and sold a record $2.13 billion worth of fresh beef to China.

Brazil’s ag exports to China are “booming”

The Trump Administration sent a formal notice to Congress that it doesn’t see Hong Kong as an autonomous region from China. Politico says that puts Hong Kong’s status as a separate customs territory at risk and opens up Beijing to sanctions. 

The move would hurt Beijing but also lessen Hong Kong as an Asian center for business and finance. “I fully expect the U.S. to proceed with sanctions on individuals and entities deemed to be undermining Hong Kong’s autonomy,” says Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies. 

Politico says Beijing recently proposed a “national security law” that would bypass Hong Kong’s legislature and give China more authority to crack down on protests. What’s next for the U.S. is currently up to President Trump, who hinted at the possibility of sanctions on the Asian nation. China has already vowed to retaliate if the U.S. takes strong actions because of its moves against Hong Kong. 

Assistant Secretary of State for East Asian and Pacific Affairs David Stilwell says the possibilities include personnel sanctions, visa sanctions, economic sanctions, as well as numerous other options. The U.S. Chamber of Commerce says any changes to Hong Kong’s status could have serious impacts on the more than 1,300 U.S. companies that operate in the island nation.

The Trump Administration sent a formal notice to Congress that it doesn’t see Hong Kong as an autonomous region from China. Politico says that puts Hong Kong’s status as a separate customs territory at risk and opens up Beijing to sanctions. The move would hurt Beijing but also lessen Hong Kong as an Asian center for business and finance. “I fully expect the U.S. to proceed with sanctions on individuals and entities deemed to be undermining Hong Kong’s autonomy,” says Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies. Politico says Beijing recently proposed a “national security law” that would bypass Hong Kong’s legislature and give China more authority to crack down on protests. What’s next for the U.S. is currently up to President Trump, who hinted at the possibility of sanctions on the Asian nation. China has already vowed to retaliate if the U.S. takes strong actions because of its moves against Hong Kong. Assistant Secretary of State for East Asian and Pacific Affairs David Stilwell says the possibilities include personnel sanctions, visa sanctions, economic sanctions, as well as numerous other options. The U.S. Chamber of Commerce says any changes to Hong Kong’s status could have serious impacts on the more than 1,300 U.S. companies that operate in the island nation.

Hong Kong trade status, U.S. relationship with China, in limbo

The Iowa Department of Agriculture is launching a disposal assistance program to help pork producers who are unable to harvest pigs due to COVID-19 supply chain disruptions. COVID-19-related worker shortages are causing meat processing facilities to drastically reduce production. 

Iowa State University estimates that, as of mid-May, approximately 600,000 pigs in Iowa were unable to be harvested. 

The Department is offering producers $40 per approved animal to help cover some of the disposal costs for market-ready hogs, weighing at least 225 pounds. Producers must provide documentation, including proof of proper disposal, and an affidavit from their herd veterinarian confirming impending welfare issues, to receive funding. 

The disposal assistance funding will be made available to Iowa producers in at least three rounds. Each approved applicant will receive funding for at least 1,000 animals and up to 30,000 animals per round, depending on the number of applicants. 

To qualify for the first round of funding, producers must submit their applications to the Iowa Department of Agriculture before May 29.

The Iowa Department of Agriculture is launching a disposal assistance program to help pork producers who are unable to harvest pigs due to COVID-19 supply chain disruptions. COVID-19-related worker shortages are causing meat processing facilities to drastically reduce production. Iowa State University estimates that, as of mid-May, approximately 600,000 pigs in Iowa were unable to be harvested. The Department is offering producers $40 per approved animal to help cover some of the disposal costs for market-ready hogs, weighing at least 225 pounds. Producers must provide documentation, including proof of proper disposal, and an affidavit from their herd veterinarian confirming impending welfare issues, to receive funding. The disposal assistance funding will be made available to Iowa producers in at least three rounds. Each approved applicant will receive funding for at least 1,000 animals and up to 30,000 animals per round, depending on the number of applicants. To qualify for the first round of funding, producers must submit their applications to the Iowa Department of Agriculture before May 29.