The Union of Concerned Scientists recently released a report analyzing the influence of lobbying on food and agriculture systems. The report finds that agribusinesses, industry associations, and other interest groups have spent more than US$500 million to influence legislation, including the Farm Bill, between 2019 and 2023. The Farm Bill is an omnibus bill that covers issues across food and agriculture systems including financial credit for farmers, resource conservation and the Supplemental Nutrition Assistance Program. It is renewed approximately every five years by Congress.

 The current Farm Bill, which expired in September 2023, was extended for an additional year, but that extension has now expired. The researchers looked at quarterly lobbying disclosure reports and campaign donations to Congress officials associated with the Farm Bill during reelection periods in 2019-2023 to determine the reach of influence of corporate lobbying over the bill. Karen Stillerman, Deputy Director of the Union of Concerned Scientists, emphasized the responsibility of legislators to uphold the needs of small and midsize farms, historically marginalized farmers, food workers, and consumers.

The Union of Concerned Scientists recently released a report analyzing the influence of lobbying on food and agriculture systems. The report finds that agribusinesses, industry associations, and other interest groups have spent more than US$500 million to influence legislation, including the Farm Bill, between 2019 and 2023. The Farm Bill is an omnibus bill that covers issues across food and agriculture systems including financial credit for farmers, resource conservation and the Supplemental Nutrition Assistance Program. It is renewed approximately every five years by Congress. The current Farm Bill, which expired in September 2023, was extended for an additional year, but that extension has now expired. The researchers looked at quarterly lobbying disclosure reports and campaign donations to Congress officials associated with the Farm Bill during reelection periods in 2019-2023 to determine the reach of influence of corporate lobbying over the bill. Karen Stillerman, Deputy Director of the Union of Concerned Scientists, emphasized the responsibility of legislators to uphold the needs of small and midsize farms, historically marginalized farmers, food workers, and consumers.-NAFB

Scientists examining corporate influence over farm bill

A federal judge rejected a petition from environmental activists for more strict regulation of large livestock operations in a win for the U.S. meat industry. The U.S. Court of Appeals for the Ninth Circuit, based in San Francisco, threw out a lawsuit that would have changed how the Environmental Protection Agency regulates concentrated animal feeding operations. Pork producers applauded the decision. The lawsuit, filed and led by Food &amp; Water Watch, challenged the EPA’s decision last year to deny a petition that would have required all farms to obtain permits to operate their CAFOs unless they could prove they’re not a source of pollution.

 In their petition, activist groups argued livestock operations are releasing pollution into waterways in violation of the Clean Water Act. In its decision, however, the court agreed with the EPA’s approach to regulating livestock production, including the formation of a subcommittee to study water quality issues, saying it was important to “seek information about how best to tackle the problem” before crafting new regulations.

A federal judge rejected a petition from environmental activists for more strict regulation of large livestock operations in a win for the U.S. meat industry. The U.S. Court of Appeals for the Ninth Circuit, based in San Francisco, threw out a lawsuit that would have changed how the Environmental Protection Agency regulates concentrated animal feeding operations. Pork producers applauded the decision. The lawsuit, filed and led by Food &amp; Water Watch, challenged the EPA’s decision last year to deny a petition that would have required all farms to obtain permits to operate their CAFOs unless they could prove they’re not a source of pollution. In their petition, activist groups argued livestock operations are releasing pollution into waterways in violation of the Clean Water Act. In its decision, however, the court agreed with the EPA’s approach to regulating livestock production, including the formation of a subcommittee to study water quality issues, saying it was important to “seek information about how best to tackle the problem” before crafting new regulations.-NAFB

Court denies petition for stronger EPA regulation of large livestock farms

U.S. agricultural exports were at $13.01 billion in August, essentially unchanged from July, against imports of $17.19 billion, which were down 2% from July, resulting in a monthly trade deficit of $4.18 billion. AgWeb reports exports thus far this fiscal year total $161.3 billion compared to imports of $188.82 billion, creating a cumulative deficit of $27.52 billion. The sector has recorded monthly deficits in 10 out of 11 months in FY 2024, with three months seeing deficits of $4 billion or more and eight months with a deficit of $1 billion or more. 

USDA forecasts agricultural exports at $173.5 billion and imports at a record $204 billion for a projected record trade deficit of $30.5 billion. In FY 2023, the trade gap was $17.1 billion. Based on the FY 2024 forecasts and cumulative trade data, agricultural exports in September would need to reach $12.2 billion to meet the USDA forecast, while imports would need to be $15.18 billion.

U.S. agricultural exports were at $13.01 billion in August, essentially unchanged from July, against imports of $17.19 billion, which were down 2% from July, resulting in a monthly trade deficit of $4.18 billion. AgWeb reports exports thus far this fiscal year total $161.3 billion compared to imports of $188.82 billion, creating a cumulative deficit of $27.52 billion. The sector has recorded monthly deficits in 10 out of 11 months in FY 2024, with three months seeing deficits of $4 billion or more and eight months with a deficit of $1 billion or more. USDA forecasts agricultural exports at $173.5 billion and imports at a record $204 billion for a projected record trade deficit of $30.5 billion. In FY 2023, the trade gap was $17.1 billion. Based on the FY 2024 forecasts and cumulative trade data, agricultural exports in September would need to reach $12.2 billion to meet the USDA forecast, while imports would need to be $15.18 billion.

USDA projects a record ag trade deficit in 2024

Cattle producers, like other farmers, are generally an optimistic bunch. A Drover’s beef industry survey shows that 64 percent of the respondents remain optimistic about the future. Over half (51 percent) of the producers plan to grow their herd size in the next five years, and another 38 percent will maintain their herd sizes. Parts of the U.S. still face dry conditions, but the situation is better than at this time in 2023. 

Producers are looking to the future, with 59 percent saying they’re planning to add a family member to the operation within the next five years. That number was 54 percent last year. While beef cow inventories continue to stabilize this year, the industry could experience a longer transition period as significant risks mute profit signals that would normally jump-start herd rebuilding efforts. Rabobank is forecasting a stable cow herd between 27.9 and 28.3 million over the next three years.

Cattle producers, like other farmers, are generally an optimistic bunch. A Drover’s beef industry survey shows that 64 percent of the respondents remain optimistic about the future. Over half (51 percent) of the producers plan to grow their herd size in the next five years, and another 38 percent will maintain their herd sizes. Parts of the U.S. still face dry conditions, but the situation is better than at this time in 2023. Producers are looking to the future, with 59 percent saying they’re planning to add a family member to the operation within the next five years. That number was 54 percent last year. While beef cow inventories continue to stabilize this year, the industry could experience a longer transition period as significant risks mute profit signals that would normally jump-start herd rebuilding efforts. Rabobank is forecasting a stable cow herd between 27.9 and 28.3 million over the next three years.-NAFB

Many cattle producers still optimistic about their futures

McDonald’s has filed a lawsuit against Tyson Foods, JBS, and other major meat packing companies. The fast food chain is accusing the packers of colluding for years to limit beef supplies. The suit says that the collusion allowed the companies to boost their profits while forcing their company to pay inflated prices for their meat supplies. McDonald’s says the companies conspired to reduce production levels beginning on January 1, 2024, which would artificially drive up market prices. 

McDonald’s has filed a lawsuit against Tyson Foods, JBS, and other major meat packing companies. The fast food chain is accusing the packers of colluding for years to limit beef supplies. The suit says that the collusion allowed the companies to boost their profits while forcing their company to pay inflated prices for their meat supplies. McDonald’s says the companies conspired to reduce production levels beginning on January 1, 2024, which would artificially drive up market prices.

McDonald’s sues meatpackers for collusion

National Corn Growers Association President Kenneth Hartman Jr. told Biden administration officials that farmers are living through difficult economic times. However, he also said Congress and the administration can help by removing barriers so growers can access expanding markets for U.S. corn. Hartman’s comments came during an event called “Farmers and Ranchers in Action” hosted by the White House. 

“On behalf of my fellow growers, I spoke about the need to make it possible for producers to access tax credits for sustainable aviation fuels,” Hartman says.  “The tax credit would help us expand the ethanol market, which is important for growers while boosting the airline industry’s efforts to lower greenhouse gas emissions.” He touched on a number of other priorities that growers hope Congress will tackle and asked administration officials to help in any way they can with pending legislation, including the long-awaited farm bill.

National Corn Growers Association President Kenneth Hartman Jr. told Biden administration officials that farmers are living through difficult economic times. However, he also said Congress and the administration can help by removing barriers so growers can access expanding markets for U.S. corn. Hartman’s comments came during an event called “Farmers and Ranchers in Action” hosted by the White House. “On behalf of my fellow growers, I spoke about the need to make it possible for producers to access tax credits for sustainable aviation fuels,” Hartman says. “The tax credit would help us expand the ethanol market, which is important for growers while boosting the airline industry’s efforts to lower greenhouse gas emissions.” He touched on a number of other priorities that growers hope Congress will tackle and asked administration officials to help in any way they can with pending legislation, including the long-awaited farm bill.-NAFB

NCBA President calls for action at White House meeting

USDA announced an additional $250 million in automatic payments for distressed direct and guaranteed farm loan borrowers. This step continues USDA’s commitment to keeping farmers and ranchers financially viable and supporting agricultural companies. “USDA continues to invest in the future of producers through our loan portfolio,” says Zach Ducheneaux, Farm Service Agency Administrator. “The payments announced today help to ensure that more than 4,600 producers across the country will see another production season.”

 He also says these ongoing investments come on the heels of critical Farm Service Agency Loan Reforms that recently went into effect. Building on the momentum, USDA announced an estimated additional $250 million in assistance to approximately 4,650 distressed direct and guaranteed farm loan borrowers. This includes about $235 million in assistance for an estimated 4,500 delinquent direct and guaranteed borrowers who have not received prior IRA assistance. Producers should reach out to local FSA staff for assistance.

USDA announced an additional $250 million in automatic payments for distressed direct and guaranteed farm loan borrowers. This step continues USDA’s commitment to keeping farmers and ranchers financially viable and supporting agricultural companies. “USDA continues to invest in the future of producers through our loan portfolio,” says Zach Ducheneaux, Farm Service Agency Administrator. “The payments announced today help to ensure that more than 4,600 producers across the country will see another production season.” He also says these ongoing investments come on the heels of critical Farm Service Agency Loan Reforms that recently went into effect. Building on the momentum, USDA announced an estimated additional $250 million in assistance to approximately 4,650 distressed direct and guaranteed farm loan borrowers. This includes about $235 million in assistance for an estimated 4,500 delinquent direct and guaranteed borrowers who have not received prior IRA assistance. Producers should reach out to local FSA staff for assistance.-NAFB

USDA assistance for distressed farm loan borrowers

Reports from the University of Illinois says the ag sector is closely watching the fertilizer markets this week because of the ongoing war in the Middle East. Following months of tight supplies, global nitrogen values started rising last week. The story of the week was Iran’s attack on Israel. The Middle East is an important area for fertilizer production in general, but it’s especially important for nitrogen. 

“When you look at the attack on Israel, Iran didn’t impact any shipping lanes, it didn’t have any impact on fertilizer production, yet prices moved higher,” says Josh Linville of StoneX. He also says the attack on Israel may have forced the market to finally admit that supplies are tight, and it’s manifesting in higher prices. Urea prices are one example of moving higher, up 10 percent as of last week. Linville advises farmers to contact their fertilizer retailers as soon as possible.

Reports from the University of Illinois says the ag sector is closely watching the fertilizer markets this week because of the ongoing war in the Middle East. Following months of tight supplies, global nitrogen values started rising last week. The story of the week was Iran’s attack on Israel. The Middle East is an important area for fertilizer production in general, but it’s especially important for nitrogen. “When you look at the attack on Israel, Iran didn’t impact any shipping lanes, it didn’t have any impact on fertilizer production, yet prices moved higher,” says Josh Linville of StoneX. He also says the attack on Israel may have forced the market to finally admit that supplies are tight, and it’s manifesting in higher prices. Urea prices are one example of moving higher, up 10 percent as of last week. Linville advises farmers to contact their fertilizer retailers as soon as possible.

Middle East conflict affecting fertilizer markets

The legislation that would set food and farm policy for the next five years is in limbo, waiting for lawmakers to decide its fate after the election. The latest deadline for the Farm Bill passed unceremoniously at midnight on Sept. 30th, without a push from lawmakers to pass a new bill or an extension. Congress will have to scramble in the lame-duck session set to begin Nov. 12 to come up with some agreement before benefits run out at the end of the year — which if allowed to happen eventually would have major consequences. 

The legislation that would set food and farm policy for the next five years is in limbo, waiting for lawmakers to decide its fate after the election. The latest deadline for the Farm Bill passed unceremoniously at midnight on Sept. 30th, without a push from lawmakers to pass a new bill or an extension. Congress will have to scramble in the lame-duck session set to begin Nov. 12 to come up with some agreement before benefits run out at the end of the year — which if allowed to happen eventually would have major consequences.

Lame duck session seen as last chance to save farm bill

In a victory for the U.S. pork industry, the U.S. Court of Appeals for the Ninth Circuit based in San Francisco rejected a lawsuit from several activist groups who sought to impose sweeping changes to the Environmental Protection Agency’s concentrated animal feeding operation (CAFO) rules. Last month, The National Pork Producers Council participated in oral arguments before the Ninth Circuit, successfully urging the court to reject the lawsuit. At that hearing, the Ninth Circuit expressed frustration and concerns with Food &amp; Water Watch’s approach and candor.

In its decision, the court made clear that EPA’s preferred approach to regulating livestock production to study water quality issues is the appropriate path for EPA and does not warrant throwing out decades of established law. NPPC stated that the lawsuit sought to use the court to upend livestock production across the country. By attacking core notions of due process and fundamental civil rights, animals rights activists sought to put pork producers around the country out of business.&nbsp;

In a victory for the U.S. pork industry, the U.S. Court of Appeals for the Ninth Circuit based in San Francisco rejected a lawsuit from several activist groups who sought to impose sweeping changes to the Environmental Protection Agency’s concentrated animal feeding operation (CAFO) rules. Last month, The National Pork Producers Council participated in oral arguments before the Ninth Circuit, successfully urging the court to reject the lawsuit. At that hearing, the Ninth Circuit expressed frustration and concerns with Food &amp; Water Watch’s approach and candor.In its decision, the court made clear that EPA’s preferred approach to regulating livestock production to study water quality issues is the appropriate path for EPA and does not warrant throwing out decades of established law. NPPC stated that the lawsuit sought to use the court to upend livestock production across the country. By attacking core notions of due process and fundamental civil rights, animals rights activists sought to put pork producers around the country out of business.&nbsp;-NAFB

NPPC secures 9th circuit victory defending Producers' freedom to farm

The Environmental Protection Agency announced a final rule to restore the pesticide Application Exclusion Zone requirements under the 2015 Agricultural Worker Protection Standard. The AEZ is an area surrounding outdoor pesticide application equipment where people are prohibited while pesticides are applied. This rule finalizes the agency’s 2023 proposed rule without change and advances the agency’s commitment to protecting farmworkers, pesticide handlers, their families, and agricultural communities. 

It reinstates AEZ protections, extends protection for neighboring communities, makes requirements easier to understand, and provides flexibility for family farms without compromising protections. “Farmworkers help provide the food that feeds our families every day, and it’s our job to keep them safe from pesticides,” says EPA’s Michael Freedhoff. “No one should be at risk from pesticide-related illnesses because of their job or where they live.” The regulation protects over two million agricultural workers, their families, and pesticide handlers who work for over 600,000 agricultural establishments.

The Environmental Protection Agency announced a final rule to restore the pesticide Application Exclusion Zone requirements under the 2015 Agricultural Worker Protection Standard. The AEZ is an area surrounding outdoor pesticide application equipment where people are prohibited while pesticides are applied. This rule finalizes the agency’s 2023 proposed rule without change and advances the agency’s commitment to protecting farmworkers, pesticide handlers, their families, and agricultural communities. It reinstates AEZ protections, extends protection for neighboring communities, makes requirements easier to understand, and provides flexibility for family farms without compromising protections. “Farmworkers help provide the food that feeds our families every day, and it’s our job to keep them safe from pesticides,” says EPA’s Michael Freedhoff. “No one should be at risk from pesticide-related illnesses because of their job or where they live.” The regulation protects over two million agricultural workers, their families, and pesticide handlers who work for over 600,000 agricultural establishments.-NAFB

EPA finalizes rule on pesticide exclusion zones

Kenneth Hartman Jr., a corn farmer from Waterloo, Illinois, is the new President of the National Corn Growers Association. His term began this week and he has a number of things to work on, including pushing Congress to pass a robust farm bill, expand markets, and address tariffs that are being placed on ag supplies and passed on to farmers. He also wants to extend consumer access to higher blends of ethanol. 

The key to accomplishing big goals like this is building relationships. “My theme as president is ‘Building Bridges,’” Hartman says. “We need to build on our ties with existing allies while cultivating new relationships with other organizations inside and outside of agriculture.” He also says corn growers need to continue reaching out to policymakers and other leaders who may not represent rural communities but who benefit indirectly from the work of farmers. 

Kenneth Hartman Jr., a corn farmer from Waterloo, Illinois, is the new President of the National Corn Growers Association. His term began this week and he has a number of things to work on, including pushing Congress to pass a robust farm bill, expand markets, and address tariffs that are being placed on ag supplies and passed on to farmers. He also wants to extend consumer access to higher blends of ethanol. The key to accomplishing big goals like this is building relationships. “My theme as president is ‘Building Bridges,’” Hartman says. “We need to build on our ties with existing allies while cultivating new relationships with other organizations inside and outside of agriculture.” He also says corn growers need to continue reaching out to policymakers and other leaders who may not represent rural communities but who benefit indirectly from the work of farmers.

National Corn Growers Association elect a new president

The September Purdue University/CME Group Ag Economy Barometer reached its lowest readings since March 2016. Declining income expectations pushed farmer sentiment down as the barometer fell to 88, and the Index of Future Expectations dropped 14 points to 94. The Index of Current Conditions also fell seven points to 76, nearly matching levels seen in April 2020, during the height of COVID. September’s survey revealed that farmers are increasingly worried about commodity prices, input costs, agricultural trade prospects, and the potential impact of the upcoming election on their farm operations. 

The September Purdue University/CME Group Ag Economy Barometer reached its lowest readings since March 2016. Declining income expectations pushed farmer sentiment down as the barometer fell to 88, and the Index of Future Expectations dropped 14 points to 94. The Index of Current Conditions also fell seven points to 76, nearly matching levels seen in April 2020, during the height of COVID. September’s survey revealed that farmers are increasingly worried about commodity prices, input costs, agricultural trade prospects, and the potential impact of the upcoming election on their farm operations.

Farmer sentiment reaches lowest point since 2016

Now that the farm bill extension reached its deadline on Monday, what’s next? While the bill expired on September 30th, the funds don’t run out until the end of the year. Some lawmakers, including Senate Ag Committee Ranking Member John Boozman, have called for another one-year extension. House Republicans said that another extension would fail to stop the bleeding in the current farm economy. 

House Democratic Leader Hakeem Jeffries puts the farm bill third on his list of must-pass bills for the lame-duck session of Congress, behind only averting a government shutdown and assuring military preparedness. “Farmers and ranchers do not have the luxury of waiting until the next Congress for an enactment of an effective five-year farm bill,” says House Ag Committee Chair Glen Thompson. Earlier this month, over 300 ag groups flew to Washington to lobby for an expedient, modernized farm bill passage.

Now that the farm bill extension reached its deadline on Monday, what’s next? While the bill expired on September 30th, the funds don’t run out until the end of the year. Some lawmakers, including Senate Ag Committee Ranking Member John Boozman, have called for another one-year extension. House Republicans said that another extension would fail to stop the bleeding in the current farm economy. House Democratic Leader Hakeem Jeffries puts the farm bill third on his list of must-pass bills for the lame-duck session of Congress, behind only averting a government shutdown and assuring military preparedness. “Farmers and ranchers do not have the luxury of waiting until the next Congress for an enactment of an effective five-year farm bill,” says House Ag Committee Chair Glen Thompson. Earlier this month, over 300 ag groups flew to Washington to lobby for an expedient, modernized farm bill passage.-NAFB

Lawmakers push for post-election farm bill 

The Food and Drug Administration reached a significant milestone when it approved its reorganization and created its new unified Human Foods Program (HFP). It is one of the most significant reorganizations in FDA’s history. The new model for field operations and other significant modernization efforts is set for Oct. 1st as the implementation date. According to FDA, the new Human Foods Program will “notably enhance the agency’s ability to oversee and protect the human food supply and other products the FDA regulates. 

The FDA says it is focused on transforming the agency to be more efficient, nimble, and ready for the future with the ever-changing and complex industries it regulates. That includes the emergence of new food technologies, the impacts of globalization, climate change, and other factors that require the FDA to adapt to an evolving world quickly.

The Food and Drug Administration reached a significant milestone when it approved its reorganization and created its new unified Human Foods Program (HFP). It is one of the most significant reorganizations in FDA’s history. The new model for field operations and other significant modernization efforts is set for Oct. 1st as the implementation date. According to FDA, the new Human Foods Program will “notably enhance the agency’s ability to oversee and protect the human food supply and other products the FDA regulates. The FDA says it is focused on transforming the agency to be more efficient, nimble, and ready for the future with the ever-changing and complex industries it regulates. That includes the emergence of new food technologies, the impacts of globalization, climate change, and other factors that require the FDA to adapt to an evolving world quickly.-NAFB

FDA set to launch Human Foods Project on October 1st

Colombia lifted a ban on American beef imports from the states where bird flu was detected in dairy cows. According to USDA’s export library, beef exporters in 14 states will get restored access to Colombian markets. Colombia was the only country to ban U.S. beef imports over the H5N1 outbreak in dairy cattle. Agriculture Dive says Colombia’s ban hurt U.S. beef export purchases and reduced Colombia’s spending by as much as 70 percent during the summer. 

Colombia lifted a ban on American beef imports from the states where bird flu was detected in dairy cows. According to USDA’s export library, beef exporters in 14 states will get restored access to Colombian markets. Colombia was the only country to ban U.S. beef imports over the H5N1 outbreak in dairy cattle. Agriculture Dive says Colombia’s ban hurt U.S. beef export purchases and reduced Colombia’s spending by as much as 70 percent during the summer.

Columbia lifts ban on U.S. beef imports

Legislation introduced in the House and Senate would extend a new sustainable aviation fuel tax credit for biofuels for ten years and prevent foreign producers from accessing the credits. Groups like the National Corn Growers Association applauded the legislation that supports domestic producers. “Corn growers are making every effort to help the airline industry lower its greenhouse gas emissions through the use of corn ethanol,” says NCGA President Harold Wolle. 

The 45Z tax credit provides incentives to refineries that produce biofuels that can be used in commercial aircraft. The National Oilseed Processors Association and the American Soybean Association also hailed the legislation. “NOPA commends this bipartisan, bicameral legislative effort that puts U.S. fuel producers, crushers, and farmers first,” says NOPA President Kailee Buller. “While we support free trade and open markets, we don’t believe foreign feedstocks should benefit on the backs of U.S. taxpayers and to the detriment of U.S. farmers.”

Legislation introduced in the House and Senate would extend a new sustainable aviation fuel tax credit for biofuels for ten years and prevent foreign producers from accessing the credits. Groups like the National Corn Growers Association applauded the legislation that supports domestic producers. “Corn growers are making every effort to help the airline industry lower its greenhouse gas emissions through the use of corn ethanol,” says NCGA President Harold Wolle. The 45Z tax credit provides incentives to refineries that produce biofuels that can be used in commercial aircraft. The National Oilseed Processors Association and the American Soybean Association also hailed the legislation. “NOPA commends this bipartisan, bicameral legislative effort that puts U.S. fuel producers, crushers, and farmers first,” says NOPA President Kailee Buller. “While we support free trade and open markets, we don’t believe foreign feedstocks should benefit on the backs of U.S. taxpayers and to the detriment of U.S. farmers.”- NAFB

Groups respond to SAF tax credit guidelines

The Commodity Futures Trading Commission approved the first guidelines for the trading of voluntary carbon credit derivative contracts in the country. Carbon credit derivative contracts are financial instruments that derive their value from carbon credits, which represent the right to emit one metric ton of carbon dioxide or an equivalent amount of greenhouse gasses. Reports  say the contracts allow traders and market participants to hedge against or speculate on the future price of carbon credits, similar to how traditional derivative contracts function in commodities or financial markets. 

Regulators pushed for heightened scrutiny of voluntary carbon markets, which have developed outside government oversight due to concerns over quality and double counting. “The CFTC’s mission focused on risk mitigation and price discovery puts us on the front lines of the global nexus between financial markets and decarbonization efforts,” says CFTC Chair Rostin Benham. “We’ve outlined guidance to crack down on manipulation.”

The Commodity Futures Trading Commission approved the first guidelines for the trading of voluntary carbon credit derivative contracts in the country. Carbon credit derivative contracts are financial instruments that derive their value from carbon credits, which represent the right to emit one metric ton of carbon dioxide or an equivalent amount of greenhouse gasses. Reports say the contracts allow traders and market participants to hedge against or speculate on the future price of carbon credits, similar to how traditional derivative contracts function in commodities or financial markets. Regulators pushed for heightened scrutiny of voluntary carbon markets, which have developed outside government oversight due to concerns over quality and double counting. “The CFTC’s mission focused on risk mitigation and price discovery puts us on the front lines of the global nexus between financial markets and decarbonization efforts,” says CFTC Chair Rostin Benham. “We’ve outlined guidance to crack down on manipulation.”-NAFB

CFTC issues first carbon credit market guidelines

For the 13th consecutive month, the Rural Mainstreet Index sank below growth neutral. That’s according to a September survey of bank CEO’s in rural areas of a ten-state region dependent on agriculture and-or energy. The region’s reading in September sank from 40.9 in August to 37.5. It is the lowest level since COVID began in spring 2020. The index ranges from 0 to 100, with 50.0 representing growth neutral. 

“Weak agriculture commodity prices, sinking agriculture equipment sales, and elevated input costs pushed the Index below growth neutral for the 13th straight month,” says Ernie Goss of Creighton University. For the fourth time in five months, farmland prices sank. The region’s farmland index fell to 43.8 from 45.5 in August. “Only 4.2 percent of bank CEOs reported that farmland prices expanded from August levels,” Goss adds. “One-fourth of the bankers anticipate a 10 to 20 percent downturn in prices over the coming year.”

For the 13th consecutive month, the Rural Mainstreet Index sank below growth neutral. That’s according to a September survey of bank CEO’s in rural areas of a ten-state region dependent on agriculture and-or energy. The region’s reading in September sank from 40.9 in August to 37.5. It is the lowest level since COVID began in spring 2020. The index ranges from 0 to 100, with 50.0 representing growth neutral. “Weak agriculture commodity prices, sinking agriculture equipment sales, and elevated input costs pushed the Index below growth neutral for the 13th straight month,” says Ernie Goss of Creighton University. For the fourth time in five months, farmland prices sank. The region’s farmland index fell to 43.8 from 45.5 in August. “Only 4.2 percent of bank CEOs reported that farmland prices expanded from August levels,” Goss adds. “One-fourth of the bankers anticipate a 10 to 20 percent downturn in prices over the coming year.”-NAFB

Rural mainstreet index stays below growth neutral

The National Corn Growers Association applauded the House of Representatives for passing a bill last week that would overturn tailpipe emissions standards from the Environmental Protection Agency. Those standards focus solely on using electric vehicles to lower greenhouse gas emissions. “The members of Congress who passed this legislation understand there are many different tools that we can use to reduce greenhouse gas emissions,” says NCGA President Harold Wolle.

“While it could take years to realize the potential that EVs offer, ethanol is an effective part of a portfolio of options for addressing climate concerns and is fully available for use today.” Wolle added. A decision of this magnitude will have long-lasting negative impacts on the rural economy because it ignores the benefits of ethanol. It’s uncertain whether the Senate will consider the legislation before the end of 2024. The Corn Growers are also currently litigating in federal court against that rule.

The National Corn Growers Association applauded the House of Representatives for passing a bill last week that would overturn tailpipe emissions standards from the Environmental Protection Agency. Those standards focus solely on using electric vehicles to lower greenhouse gas emissions. “The members of Congress who passed this legislation understand there are many different tools that we can use to reduce greenhouse gas emissions,” says NCGA President Harold Wolle.“While it could take years to realize the potential that EVs offer, ethanol is an effective part of a portfolio of options for addressing climate concerns and is fully available for use today.” Wolle added. A decision of this magnitude will have long-lasting negative impacts on the rural economy because it ignores the benefits of ethanol. It’s uncertain whether the Senate will consider the legislation before the end of 2024. The Corn Growers are also currently litigating in federal court against that rule.-NAFB

NCGA applauds house vote on tailpipe emissions

The USDA launched the Distressed Borrowers Assistance Network, an initiative designed to provide support to financially distressed farmers and ranchers across the nation. Through a series of Cooperative Agreements, this national network will connect distressed borrowers with individualized assistance to help them stabilize and regain financial footing. Network partners include Farm Aid, the University of Arkansas, the University of Minnesota, and others.

 “Having someone with experience in ag finance who helps producers work through financial difficulties can be the difference between losing the farm or prospering,” says FSA Administrator Zach Ducheneaux. “The Distressed Borrowers Assistance Network underscores our dedication to farmers and ranchers receiving the tailored support they need.” He also says the initiative will address the immediate needs of distressed borrowers and provide comprehensive, wraparound services aimed at addressing the unique challenges faced by financially distressed producers. Investments will build a support network for agriculture in the years ahead.

The USDA launched the Distressed Borrowers Assistance Network, an initiative designed to provide support to financially distressed farmers and ranchers across the nation. Through a series of Cooperative Agreements, this national network will connect distressed borrowers with individualized assistance to help them stabilize and regain financial footing. Network partners include Farm Aid, the University of Arkansas, the University of Minnesota, and others. “Having someone with experience in ag finance who helps producers work through financial difficulties can be the difference between losing the farm or prospering,” says FSA Administrator Zach Ducheneaux. “The Distressed Borrowers Assistance Network underscores our dedication to farmers and ranchers receiving the tailored support they need.” He also says the initiative will address the immediate needs of distressed borrowers and provide comprehensive, wraparound services aimed at addressing the unique challenges faced by financially distressed producers. Investments will build a support network for agriculture in the years ahead.-NAFB

 USDA launches support network for financially stressed producers

The Fall and Winter holidays are still a few months out, but USDA says the essentials for holiday cooking have been accumulating in cold storage. Stocks of bone-in and boneless hams at the end of July totaled nearly 140 million pounds, 1.2 percent above last year. Whole-hen turkey stocks totaled nearly 110 million pounds at the end of July, an increase of 12.5 percent from the same time last year. That’s even though the 2024 turkey production is projected to be lower than a year ago. 

The Fall and Winter holidays are still a few months out, but USDA says the essentials for holiday cooking have been accumulating in cold storage. Stocks of bone-in and boneless hams at the end of July totaled nearly 140 million pounds, 1.2 percent above last year. Whole-hen turkey stocks totaled nearly 110 million pounds at the end of July, an increase of 12.5 percent from the same time last year. That’s even though the 2024 turkey production is projected to be lower than a year ago.

Stocks of hams, turkeys, and butter are higher than 2023

The Energy Information Administration says ethanol output fell to its lowest level in three months while inventories rose slightly during the week that ended on September 13. The agency said production sank to an average of 1.04 million barrels a day, down from 1.09 million barrels a day the previous week. It’s also the lowest output since the middle of June. 

The Midwest, which produces the most ethanol of any region in the country, saw production drop to an average of 986,000 barrels a day from 1.02 million the week prior. That’s the lowest point in the region since June 7th. That was the entirety of the losses as Gulf Coast production rose to an average of 28,000 barrels a day, East Coast output was unchanged at 12,000 barrels a day, and Rocky Mountain production was steady at 14,000 barrels. West Coast production remained at an average of 9,000 barrels per day.

The Energy Information Administration says ethanol output fell to its lowest level in three months while inventories rose slightly during the week that ended on September 13. The agency said production sank to an average of 1.04 million barrels a day, down from 1.09 million barrels a day the previous week. It’s also the lowest output since the middle of June. The Midwest, which produces the most ethanol of any region in the country, saw production drop to an average of 986,000 barrels a day from 1.02 million the week prior. That’s the lowest point in the region since June 7th. That was the entirety of the losses as Gulf Coast production rose to an average of 28,000 barrels a day, East Coast output was unchanged at 12,000 barrels a day, and Rocky Mountain production was steady at 14,000 barrels. West Coast production remained at an average of 9,000 barrels per day.-NAFB

Ethanol production falls to near three-Month low

Kicking off an expected loosening of U.S. monetary policy, the Federal Reserve cut interest rates by half a percentage point on Wednesday. The move brings a larger-than-normal reduction in the cost of borrowing, which followed growing concern about the health of America’s job market. Reports show that the higher interest rates have hit the agricultural sector much harder than the rest of the U.S. economy. 

Kicking off an expected loosening of U.S. monetary policy, the Federal Reserve cut interest rates by half a percentage point on Wednesday. The move brings a larger-than-normal reduction in the cost of borrowing, which followed growing concern about the health of America’s job market. Reports show that the higher interest rates have hit the agricultural sector much harder than the rest of the U.S. economy.

Fed cuts interest rates, some relief for agriculture

A judge in Missouri dismissed a lawsuit accusing agricultural giants like Bayer, Corteva, Syngenta, and others of price fixing. The suit accused the companies of conspiring with wholesalers and retail outlets to fix prices for seeds and crop protection chemicals, forcing farmers to pay higher prices. A St. Louis-based judge says that the farmers and other plaintiffs failed to present sufficient allegations that the companies had violated U.S. antitrust laws. 

A judge in Missouri dismissed a lawsuit accusing agricultural giants like Bayer, Corteva, Syngenta, and others of price fixing. The suit accused the companies of conspiring with wholesalers and retail outlets to fix prices for seeds and crop protection chemicals, forcing farmers to pay higher prices. A St. Louis-based judge says that the farmers and other plaintiffs failed to present sufficient allegations that the companies had violated U.S. antitrust laws.