Portland, Oregon’s city council recently voted to phase out petroleum diesel sales and replace the product with biofuels. 

The policy focuses on diesel fuel, phasing in requirements for cleaner, renewable fuels, with the goal of achieving 99 percent renewable blend of all diesel fuel sales in Portland by 2030. 

The rulemaking process and the interim rule allows flexibility to adjust the policy based on real market conditions. 

While renewable fuel producers are confident that supply will be available in Oregon by 2026, the rollout timeline was extended to 2030 in response to concerns from local industry about supply and cost. 

City leaders say the efforts reduce dependence on nonrenewable fossil fuels by increasing the required percentage of renewable fuels blended with petroleum diesel. 

The standard only applies to retailers of diesel fuel located within the city of Portland. Replacing petroleum diesel at the pump is one of the 43 priority actions listed in the Portland Climate Emergency Workplan.

Portland, Oregon’s city council recently voted to phase out petroleum diesel sales and replace the product with biofuels. The policy focuses on diesel fuel, phasing in requirements for cleaner, renewable fuels, with the goal of achieving 99 percent renewable blend of all diesel fuel sales in Portland by 2030. The rulemaking process and the interim rule allows flexibility to adjust the policy based on real market conditions. While renewable fuel producers are confident that supply will be available in Oregon by 2026, the rollout timeline was extended to 2030 in response to concerns from local industry about supply and cost. City leaders say the efforts reduce dependence on nonrenewable fossil fuels by increasing the required percentage of renewable fuels blended with petroleum diesel. The standard only applies to retailers of diesel fuel located within the city of Portland. Replacing petroleum diesel at the pump is one of the 43 priority actions listed in the Portland Climate Emergency Workplan.

Portland to replace petroleum diesel sales with biodiesel

USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for a regional trade mission to Panama from March 19-23, 2023. 

FAS Administrator Daniel Whitley says, "This is a perfect time to increase U.S. agricultural and food exports to Central America." 

USDA staff and regional experts will provide in-depth market briefings while in the country. 

The agency will also arrange targeted business meetings with potential customers from Panama, a bilateral Free Trade Agreement partner, and buyers from countries in the multilateral Central America and Dominican Republic Free Trade Agreement. The region offers strong capabilities in logistics, distribution, processing, cold chain, and more. 

Strong opportunities exist for exporters across many industries, including poultry, pork, dairy, beer and wine, snack foods and health foods. This will be the first USDA Agribusiness Trade Mission in 2023. The deadline to apply for the CAFTA-DR trade mission is Friday, December 30. Complete information is available at fas.usda.gov/.

USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for a regional trade mission to Panama from March 19-23, 2023. FAS Administrator Daniel Whitley says, "This is a perfect time to increase U.S. agricultural and food exports to Central America." USDA staff and regional experts will provide in-depth market briefings while in the country. The agency will also arrange targeted business meetings with potential customers from Panama, a bilateral Free Trade Agreement partner, and buyers from countries in the multilateral Central America and Dominican Republic Free Trade Agreement. The region offers strong capabilities in logistics, distribution, processing, cold chain, and more. Strong opportunities exist for exporters across many industries, including poultry, pork, dairy, beer and wine, snack foods and health foods. This will be the first USDA Agribusiness Trade Mission in 2023. The deadline to apply for the CAFTA-DR trade mission is Friday, December 30. Complete information is available at fas.usda.gov/.

USDA accepting applications for Panama Agribusiness Trade Mission

The Federal Trade Commission recently finalized a consent order settling Tractor Supply Company’s acquisition of rival chain Orscheln Farm and Home LLC. 

Following a public comment period, the FTC determined the acquisition would have harmed competition among farm stores in the Midwest and South. 

The consent order imposes a number of requirements, including that Tractor Supply divest some Orscheln stores, as well as Orscheln’s corporate offices and Missouri distribution center, to Bomgaars ), an Iowa-based farm store chain, and other stores to Buchheit, another chain with farm stores in Missouri and Illinois. 

Tractor Supply Company announced it closed the Orscheln Farm and Home acquisition in October in a deal valued at $320 million. 

The consent agreement also requires that for a period of three years, the companies buying the divested farm stores must obtain prior approval from the FTC before selling any of the Orscheln stores they acquired.

The Federal Trade Commission recently finalized a consent order settling Tractor Supply Company’s acquisition of rival chain Orscheln Farm and Home LLC. Following a public comment period, the FTC determined the acquisition would have harmed competition among farm stores in the Midwest and South. The consent order imposes a number of requirements, including that Tractor Supply divest some Orscheln stores, as well as Orscheln’s corporate offices and Missouri distribution center, to Bomgaars ), an Iowa-based farm store chain, and other stores to Buchheit, another chain with farm stores in Missouri and Illinois. Tractor Supply Company announced it closed the Orscheln Farm and Home acquisition in October in a deal valued at $320 million. The consent agreement also requires that for a period of three years, the companies buying the divested farm stores must obtain prior approval from the FTC before selling any of the Orscheln stores they acquired.

FTC: Tractor Supply Company must sell some Orscheln stores

Twenty-four members of the House of Representatives Ways and Means Committee sent a letter to U.S. Trade Representative Katherine Tai about Mexico. 

They want a resolution to a lingering trade dispute with Mexico over biotech corn imports. 

“We’ve been working closely with Congress on this issue, and it’s inspiring to see congressional champions faithfully taking up the mantle,” says National Corn Growers Association President Tom Haag. 

“These members are now looking to Ambassador Tai to uphold the integrity of USMCA.” The letter is the latest development and response from U.S. officials as the ag community braces for a fallout if Mexico follows through on its promise to ban biotech corn shipments in early 2024. 

Ninety percent of U.S. corn is biotech corn. Ag Secretary Tom Vilsack traveled to Mexico City and met with Mexican President Lopez Obrador, saying the U.S. would consider all options, including formal steps to enforce the terms of USMCA.

Twenty-four members of the House of Representatives Ways and Means Committee sent a letter to U.S. Trade Representative Katherine Tai about Mexico. They want a resolution to a lingering trade dispute with Mexico over biotech corn imports. “We’ve been working closely with Congress on this issue, and it’s inspiring to see congressional champions faithfully taking up the mantle,” says National Corn Growers Association President Tom Haag. “These members are now looking to Ambassador Tai to uphold the integrity of USMCA.” The letter is the latest development and response from U.S. officials as the ag community braces for a fallout if Mexico follows through on its promise to ban biotech corn shipments in early 2024. Ninety percent of U.S. corn is biotech corn. Ag Secretary Tom Vilsack traveled to Mexico City and met with Mexican President Lopez Obrador, saying the U.S. would consider all options, including formal steps to enforce the terms of USMCA.

Representatives send letter to USTR on Mexico’s upcoming corn ban

The Farm Credit Administration received a quarterly report on economic issues affecting U.S. agriculture and an update on the performance of the Farm Credit System. 

Inflation and rising interest rates continue to be major economic issues despite a recent slowdown in inflation. 

Consumer reaction to inflation, higher interest rates, and the labor market will be key drivers for the economy in 2023.&nbsp;&nbsp;Input costs will be important for farmers next year. 

Volatility in the price of natural gas will continue to be passed on through fertilizer prices. Supply chain difficulties persist with agricultural equipment, leading to high prices and long waits for new equipment and replacement parts. 

Through the first nine months of 2022, the Farm Credit System reported favorable financial results, including continued loan growth, increased earnings, and robust capital levels despite some decline in the System’s capital-to-asset ratio. Portfolios remained strong despite challenging operating conditions in certain sectors and regions.

The Farm Credit Administration received a quarterly report on economic issues affecting U.S. agriculture and an update on the performance of the Farm Credit System. Inflation and rising interest rates continue to be major economic issues despite a recent slowdown in inflation. Consumer reaction to inflation, higher interest rates, and the labor market will be key drivers for the economy in 2023.&nbsp;&nbsp;Input costs will be important for farmers next year. Volatility in the price of natural gas will continue to be passed on through fertilizer prices. Supply chain difficulties persist with agricultural equipment, leading to high prices and long waits for new equipment and replacement parts. Through the first nine months of 2022, the Farm Credit System reported favorable financial results, including continued loan growth, increased earnings, and robust capital levels despite some decline in the System’s capital-to-asset ratio. Portfolios remained strong despite challenging operating conditions in certain sectors and regions.

FCA issues latest report on the Ag economy

U.S. Trade Rep Katherine Tai and Japan’s Ambassador to the U.S. confirmed that amendments to the beef safeguard trigger level under the U.S.-Japan Trade Agreement will trigger on January 1, 2023. 

The letters confirmed both countries completed their procedures to put the protocol in place. 

“The new beef safeguard agreement will ensure that America’s farmers and ranchers can continue to meet Japan’s strong demand for high-quality U.S. beef,” says Tai. 

“I’m grateful to leaders and stakeholders in both countries for their dedication and ingenuity, which were important in reaching this outcome.” The new protocol amends the beef safeguard trigger level with a new three-trigger safeguard mechanism. 

The new amendment allows U.S. beef exporters to more reliably meet Japan’s growing demand for high-quality beef, provides more predictability, and reduces the probability that safeguard duties would get imposed on U.S. beef. All three criteria must be met to impose a tariff on U.S. beef.

U.S. Trade Rep Katherine Tai and Japan’s Ambassador to the U.S. confirmed that amendments to the beef safeguard trigger level under the U.S.-Japan Trade Agreement will trigger on January 1, 2023. The letters confirmed both countries completed their procedures to put the protocol in place. “The new beef safeguard agreement will ensure that America’s farmers and ranchers can continue to meet Japan’s strong demand for high-quality U.S. beef,” says Tai. “I’m grateful to leaders and stakeholders in both countries for their dedication and ingenuity, which were important in reaching this outcome.” The new protocol amends the beef safeguard trigger level with a new three-trigger safeguard mechanism. The new amendment allows U.S. beef exporters to more reliably meet Japan’s growing demand for high-quality beef, provides more predictability, and reduces the probability that safeguard duties would get imposed on U.S. beef. All three criteria must be met to impose a tariff on U.S. beef.

Beef agreement between U.S., Japan officially set for January 1, 2023

The prospect of permanent, nationwide availability of the E15 ethanol blend moves closer with new House legislation, according to the Renewable Fuels Association. 

Representatives Angie Craig, a Minnesota Democrat, and Adrian Smith, a Nebraska Republican, this week introduced the Consumer and Fuel Retailer Choice Act of 2022. 

RFA President and CEO Geoff Cooper says the legislation will “finally remove a burdensome and nonsensical barrier to the broader deployment of cleaner, more affordable fuels.” 

Specifically, the legislation would harmonize fuel volatility regulations for ethanol-blended fuels across the country, allowing for the year-round sale of E15 in conventional gasoline markets. 

It also would supersede an effort by Midwest state governors to make regulatory changes that would assure the availability of E15 sales year-round in their states. In November, RFA and the American Petroleum Institute led a broad coalition that called on Congress to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations.

The prospect of permanent, nationwide availability of the E15 ethanol blend moves closer with new House legislation, according to the Renewable Fuels Association. Representatives Angie Craig, a Minnesota Democrat, and Adrian Smith, a Nebraska Republican, this week introduced the Consumer and Fuel Retailer Choice Act of 2022. RFA President and CEO Geoff Cooper says the legislation will “finally remove a burdensome and nonsensical barrier to the broader deployment of cleaner, more affordable fuels.” Specifically, the legislation would harmonize fuel volatility regulations for ethanol-blended fuels across the country, allowing for the year-round sale of E15 in conventional gasoline markets. It also would supersede an effort by Midwest state governors to make regulatory changes that would assure the availability of E15 sales year-round in their states. In November, RFA and the American Petroleum Institute led a broad coalition that called on Congress to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations.

Lawmakers introduce Consumer and Fuel Retailer Choice Act of 2022

October exports of U.S. pork were the largest in more than a year, and beef export volume also increased from a year ago, according to the U.S. Meat Export Federation. 

U.S. beef exports are on a record pace in 2022 and have already exceeded $10 billion. 

Pork exports reached 238,190 metric tons in October, up five percent from a year ago and the largest since June 2021. 

Pork export value increased 13 percent to $697.3 million, the highest since May 2021. 

For January through October, pork exports were 12 percent below last year at 2.18 million metric tons, valued at $6.26 billion.&nbsp;&nbsp;October beef exports totaled 125,466 metric tons, up eight percent from a year ago. 

Export value was $929.8 million, down three percent from the large total reported in October 2021. In the first ten months of 2022, beef export value increased 18 percent from last year's record pace to reach $10.05 billion.

October exports of U.S. pork were the largest in more than a year, and beef export volume also increased from a year ago, according to the U.S. Meat Export Federation. U.S. beef exports are on a record pace in 2022 and have already exceeded $10 billion. Pork exports reached 238,190 metric tons in October, up five percent from a year ago and the largest since June 2021. Pork export value increased 13 percent to $697.3 million, the highest since May 2021. For January through October, pork exports were 12 percent below last year at 2.18 million metric tons, valued at $6.26 billion.&nbsp;&nbsp;October beef exports totaled 125,466 metric tons, up eight percent from a year ago. Export value was $929.8 million, down three percent from the large total reported in October 2021. In the first ten months of 2022, beef export value increased 18 percent from last year's record pace to reach $10.05 billion.

October pork exports largest in 16 months; beef exports already top $10 billion

Agriculture Secretary Tom Vilsack travels to Alabama Monday to announce the second round of investments of the Partnerships for Climate-Smart Commodities funding. 

Projects from the second funding pool will emphasize the enrollment of small farming and ranching operations, including underserved producers, as well as measurement, monitoring, reporting and verification activities developed at minority-serving institutions. 

The investment in projects nationwide will expand markets for climate-smart commodities, leverage the greenhouse gas benefits of climate-smart commodity production and provide direct, meaningful benefits to production agriculture, according to USDA. 

In September, Vilsack announced USDA is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. 

USDA first announced details of the Partnerships for Climate-Smart Commodities opportunity in February 2022. The 70 projects announced in September are from the first funding pool, which included proposals seeking funds ranging from $5 million to $100 million.

Agriculture Secretary Tom Vilsack travels to Alabama Monday to announce the second round of investments of the Partnerships for Climate-Smart Commodities funding. Projects from the second funding pool will emphasize the enrollment of small farming and ranching operations, including underserved producers, as well as measurement, monitoring, reporting and verification activities developed at minority-serving institutions. The investment in projects nationwide will expand markets for climate-smart commodities, leverage the greenhouse gas benefits of climate-smart commodity production and provide direct, meaningful benefits to production agriculture, according to USDA. In September, Vilsack announced USDA is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. USDA first announced details of the Partnerships for Climate-Smart Commodities opportunity in February 2022. The 70 projects announced in September are from the first funding pool, which included proposals seeking funds ranging from $5 million to $100 million.

Vilsack to announce second round of Climate-Smart Commodities investments

The U.S. is about to more than double its production capacity for renewable diesel. 

Reuters says that prediction comes from Greg Heckman, the CEO of Bunge, who says the country’s production capacity should hit five billion gallons by 2024. 

Heckman recently said his company hasn’t changed its own capacity plans after the recent RFS blending requirements didn’t increase as much as the industry expected. 

“Demand is up,” he says. “It’s sure not affecting us as we’ve been making plans for the long term.” Bunge formed a joint venture with Chevron in 2021 and announced plans to expand processing capacity by 2024 at Bunge’s soy-crushing facilities in Illinois and Louisiana. 

Those beans can be used to produce soy-based biodiesel. Other companies like JP Morgan say the EPA’s proposal on biofuel blending requirements calls for a “surprisingly low amount of growth,” and they worry about an oversupply of biodiesel without large enough mandates.

The U.S. is about to more than double its production capacity for renewable diesel. Reuters says that prediction comes from Greg Heckman, the CEO of Bunge, who says the country’s production capacity should hit five billion gallons by 2024. Heckman recently said his company hasn’t changed its own capacity plans after the recent RFS blending requirements didn’t increase as much as the industry expected. “Demand is up,” he says. “It’s sure not affecting us as we’ve been making plans for the long term.” Bunge formed a joint venture with Chevron in 2021 and announced plans to expand processing capacity by 2024 at Bunge’s soy-crushing facilities in Illinois and Louisiana. Those beans can be used to produce soy-based biodiesel. Other companies like JP Morgan say the EPA’s proposal on biofuel blending requirements calls for a “surprisingly low amount of growth,” and they worry about an oversupply of biodiesel without large enough mandates.

Bunge expecting big jump in renewable diesel production

The top Republican on the House Ag Committee wants a stronger safety net for U.S. farmers. 

Pennsylvania Republican Glenn Thompson wants Congress to strengthen crop insurance and farm subsidy programs so producers don’t have to rely on stop-gap federal aid to survive challenges like trade wars, natural disasters, and COVID-19. 

“The need for a reliable farm safety net is paramount,” says Thompson.&nbsp;&nbsp;He will likely become the committee chair in January when Republicans gain a slim majority in the House. 

Agriculture Dot Com says almost 80 percent of federal agriculture funding has moved through bailout programs since 2018.&nbsp;&nbsp;Farm groups want higher reference prices, a factor in calculating subsidy payments, and more protection under the federal crop insurance program. 

Some industry experts say a status-quo farm bill is possible because of the small majorities in the House and Senate and a potential lack of new funding sources for the farm bill.

The top Republican on the House Ag Committee wants a stronger safety net for U.S. farmers. Pennsylvania Republican Glenn Thompson wants Congress to strengthen crop insurance and farm subsidy programs so producers don’t have to rely on stop-gap federal aid to survive challenges like trade wars, natural disasters, and COVID-19. “The need for a reliable farm safety net is paramount,” says Thompson.&nbsp;&nbsp;He will likely become the committee chair in January when Republicans gain a slim majority in the House. Agriculture Dot Com says almost 80 percent of federal agriculture funding has moved through bailout programs since 2018.&nbsp;&nbsp;Farm groups want higher reference prices, a factor in calculating subsidy payments, and more protection under the federal crop insurance program. Some industry experts say a status-quo farm bill is possible because of the small majorities in the House and Senate and a potential lack of new funding sources for the farm bill.

Top House ag republican wants enhanced safety net

The Christmas tree industry wants Americans to know there will be enough trees available to meet the demand for real Christmas trees. 

Marsha Gray, executive director of the Real Christmas Tree Board, says,” The industry met the demand in 2021 and will do so again this year. This is a year with few surprises.” 

Gray also says their annual survey found that 86 percent of real Christmas tree buyers had no problems finding a nearby place to get their trees in 2021. 

“Our grower survey tells us the demand for real trees is healthy,” Gray says. “Retailers see steady consumer interest in real Christmas trees and supply is pretty well matched to that interest.” 

Like many other sectors of U.S. agriculture, Christmas tree growers say their input costs have risen compared to last year. Consequently, many growers had a five to 15 percent increase in their wholesale prices compared to last year.

The Christmas tree industry wants Americans to know there will be enough trees available to meet the demand for real Christmas trees. Marsha Gray, executive director of the Real Christmas Tree Board, says,” The industry met the demand in 2021 and will do so again this year. This is a year with few surprises.” Gray also says their annual survey found that 86 percent of real Christmas tree buyers had no problems finding a nearby place to get their trees in 2021. “Our grower survey tells us the demand for real trees is healthy,” Gray says. “Retailers see steady consumer interest in real Christmas trees and supply is pretty well matched to that interest.” Like many other sectors of U.S. agriculture, Christmas tree growers say their input costs have risen compared to last year. Consequently, many growers had a five to 15 percent increase in their wholesale prices compared to last year.

There are enough Christmas trees to meet the demand

Fertilizer consumption suffered in 2022 due to market volatility and record-high prices. 

However, a new Rabobank report says a recovery in consumption is possible in some regions next year, with fertilizer prices lowering and commodity prices at historically high levels. 

“The affordability index’s moving average is trending lower as fertilizer prices are returning to pre-Ukraine War levels,” says Rabobank. 

“For the next three months, the index will continue to trend downward but remain above normal.” The key point to watch for is nitrogen products, as the natural gas crisis in Europe has the potential to make urea and ammonia more expensive and could keep the index at a high level. 

Rabobank says the nitrogen-based fertilizer market is the most volatile among all fertilizers due to its connection with oil and natural gas markets. As those commodities get more volatile, urea and ammonia prices are expected to go along with the tide.

Fertilizer consumption suffered in 2022 due to market volatility and record-high prices. However, a new Rabobank report says a recovery in consumption is possible in some regions next year, with fertilizer prices lowering and commodity prices at historically high levels. “The affordability index’s moving average is trending lower as fertilizer prices are returning to pre-Ukraine War levels,” says Rabobank. “For the next three months, the index will continue to trend downward but remain above normal.” The key point to watch for is nitrogen products, as the natural gas crisis in Europe has the potential to make urea and ammonia more expensive and could keep the index at a high level. Rabobank says the nitrogen-based fertilizer market is the most volatile among all fertilizers due to its connection with oil and natural gas markets. As those commodities get more volatile, urea and ammonia prices are expected to go along with the tide.

Rabobank: Fertilizer prices lower in 2023

The National Cattlemen’s Beef Association welcomed the release of the final rule from the USDA to establish the Cattle Contract Library Pilot Program. 

This program was authorized following NCBA’s congressional engagement on the Consolidated Appropriations Act of 2022. 

“We are pleased that USDA listened to the feedback from industry stakeholders like NCBA while crafting the final rule for the Cattle Contract Library Pilot Program,” says NCBA senior director of government affairs Tanner Beymer. 

“We are hopeful that this pilot program will strike an appropriate balance between offering cattle producers additional insight into the market while also protecting their proprietary business information.” 

Beymer also says a Cattle Contract Library is just one of the many tools that NCBA has advocated for to help producers make informed business decisions and capture the most value possible for their cattle at sale time. NCBA provided USDA with feedback throughout the testing phase of the program.

The National Cattlemen’s Beef Association welcomed the release of the final rule from the USDA to establish the Cattle Contract Library Pilot Program. This program was authorized following NCBA’s congressional engagement on the Consolidated Appropriations Act of 2022. “We are pleased that USDA listened to the feedback from industry stakeholders like NCBA while crafting the final rule for the Cattle Contract Library Pilot Program,” says NCBA senior director of government affairs Tanner Beymer. “We are hopeful that this pilot program will strike an appropriate balance between offering cattle producers additional insight into the market while also protecting their proprietary business information.” Beymer also says a Cattle Contract Library is just one of the many tools that NCBA has advocated for to help producers make informed business decisions and capture the most value possible for their cattle at sale time. NCBA provided USDA with feedback throughout the testing phase of the program.

NCBA pleased with Cattle Contract Library Final Rule

A poll of voters commissioned by the International Dairy Foods Association shows strong support for reforming immigration policy as a way to help control food prices. 

Almost 90 percent of Democrat voters and 79 percent of Republican voters support the idea of immigration reform. 

When asked about the price of food, it was an almost unanimous 94 percent who said that rising food prices are a problem in America. 

It turns out that over 40 percent of the voters see a connection between immigration issues and rising food costs. Democrat and Republican voters aren’t aligned in connecting immigration issues with rising food costs. 

Over half of Republican voters say they’re connected while only one-third of Democrats do. Over half of the voters, including 55 percent of Democrats and 58 percent of Republicans, support Congress passing substantial immigration reform. Older voters, post-graduate voters, and urban voters are the most supportive of reform.

A poll of voters commissioned by the International Dairy Foods Association shows strong support for reforming immigration policy as a way to help control food prices. Almost 90 percent of Democrat voters and 79 percent of Republican voters support the idea of immigration reform. When asked about the price of food, it was an almost unanimous 94 percent who said that rising food prices are a problem in America. It turns out that over 40 percent of the voters see a connection between immigration issues and rising food costs. Democrat and Republican voters aren’t aligned in connecting immigration issues with rising food costs. Over half of Republican voters say they’re connected while only one-third of Democrats do. Over half of the voters, including 55 percent of Democrats and 58 percent of Republicans, support Congress passing substantial immigration reform. Older voters, post-graduate voters, and urban voters are the most supportive of reform.

Poll shows voters support immigration reform

USDA’s Economic Research Service finds cover crop mixes account for 18 to 25 percent of acres with cover crops. 

However, the use of single-species cover crops is more common. For corn fields in 2021, almost 75 percent of acres with cover crops used a grass or small grain cover crop, such as cereal rye, winter wheat, or oats. 

At 44 percent of acreage, cereal rye was almost twice as common as winter wheat as the cover crop on corn for grain fields. 

Rye and winter wheat were also the most common cover crops on soybean fields in 2018. Winter wheat was the most common cover crop used on cotton fields in 2019. 

Farmers add cover crops to a rotation to provide living, seasonal soil cover between the planting of two cash or forage crops. Including cover crops in a rotation can provide benefits such as improved soil health and water quality, weed suppression, and reduced soil erosion.

USDA’s Economic Research Service finds cover crop mixes account for 18 to 25 percent of acres with cover crops. However, the use of single-species cover crops is more common. For corn fields in 2021, almost 75 percent of acres with cover crops used a grass or small grain cover crop, such as cereal rye, winter wheat, or oats. At 44 percent of acreage, cereal rye was almost twice as common as winter wheat as the cover crop on corn for grain fields. Rye and winter wheat were also the most common cover crops on soybean fields in 2018. Winter wheat was the most common cover crop used on cotton fields in 2019. Farmers add cover crops to a rotation to provide living, seasonal soil cover between the planting of two cash or forage crops. Including cover crops in a rotation can provide benefits such as improved soil health and water quality, weed suppression, and reduced soil erosion.

Cover crop mixes account for 18 – 25% of cover crop acreage

In response to relatively stronger net farm incomes, U.S. farm sector capital expenditures have increased dramatically in the last three years, according to research by the University of Illinois. 

In 2019, farm sector capital expenditures were approximately $30.1 billion. The forecasted value for 2022 is $44.2 billion. 

Capital expenditures include tractors, trucks, autos, machinery, buildings, land improvements, and miscellaneous expenditures. 

Capital consumption represents the declining balance of capital stock or economic depreciation. The ratio of capital expenditures to capital consumption increased from 1.06 in 2019 to 1.70 in 2022. The data implies that farmers have used a portion of their strong net farm incomes in the last few years to replenish their capital stock. 

The changes in expenditures during the last four years have differed among expenditure categories. Specifically, increases were larger for tractors and machinery than for autos, trucks, buildings, and land improvements.

In response to relatively stronger net farm incomes, U.S. farm sector capital expenditures have increased dramatically in the last three years, according to research by the University of Illinois. In 2019, farm sector capital expenditures were approximately $30.1 billion. The forecasted value for 2022 is $44.2 billion. Capital expenditures include tractors, trucks, autos, machinery, buildings, land improvements, and miscellaneous expenditures. Capital consumption represents the declining balance of capital stock or economic depreciation. The ratio of capital expenditures to capital consumption increased from 1.06 in 2019 to 1.70 in 2022. The data implies that farmers have used a portion of their strong net farm incomes in the last few years to replenish their capital stock. The changes in expenditures during the last four years have differed among expenditure categories. Specifically, increases were larger for tractors and machinery than for autos, trucks, buildings, and land improvements.

Farm capital expenditures increasing with farm income rise

The national average gas price fell 15.8 cents over the last week, down to $3.36 per gallon.&nbsp;&nbsp;The national average is down 43 cents from a month ago and 1.5 cents per gallon higher than a year ago. 

The national average diesel price fell 13.6 cents last week to $5.06 per gallon. 

GasBuddy's Patrick De Haan says, “it remains very possible the national average could fall under $3 per gallon by Christmas.”&nbsp;&nbsp;

De Haan expects diesel prices to fall under $5 per gallon this week, and soon reach its lowest level since March of this year.&nbsp;&nbsp;While the declines are welcomed, De Haan cautions that there may be some concerns coming as the price cap on Russian oil kicks in. 

Further, retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production. Meanwhile, U.S. retail gasoline demand rose last week by 2.3 percent, bouncing back the week after Thanksgiving.

The national average gas price fell 15.8 cents over the last week, down to $3.36 per gallon.&nbsp;&nbsp;The national average is down 43 cents from a month ago and 1.5 cents per gallon higher than a year ago. The national average diesel price fell 13.6 cents last week to $5.06 per gallon. GasBuddy's Patrick De Haan says, “it remains very possible the national average could fall under $3 per gallon by Christmas.”&nbsp;&nbsp;De Haan expects diesel prices to fall under $5 per gallon this week, and soon reach its lowest level since March of this year.&nbsp;&nbsp;While the declines are welcomed, De Haan cautions that there may be some concerns coming as the price cap on Russian oil kicks in. Further, retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production. Meanwhile, U.S. retail gasoline demand rose last week by 2.3 percent, bouncing back the week after Thanksgiving.

Gas, and diesel prices fall again

The Environmental Protection Agency released its draft “set” rule, which sets the annual biofuel blending targets for 2023-2025 under the Renewable Fuel Standard. Soy farmers were initially pleased with EPA’s 2022 volume target, which included the highest-ever number for total renewable fuels and specifically biomass-based diesel since the RFS was created.

 The new proposal goes in the other direction. “This rule slams the breaks on progress being made in biofuel investments and growth,” says American Soybean Association president Brad Doyle. “Instead of continuing to support available low-emission, plant-based fuel sources, EPA has changed course and seems to ignore major investments in and consumer demand for biomass-based diesel and other biofuels that exist right now.” 

The multi-year set rule is supposed to provide consistency and encourage investment in the biofuels industry. ASA says these insignificant volume increases for 2023-2025 could not only stifle growth but also jeopardize the existing biofuels industry.

The Environmental Protection Agency released its draft “set” rule, which sets the annual biofuel blending targets for 2023-2025 under the Renewable Fuel Standard. Soy farmers were initially pleased with EPA’s 2022 volume target, which included the highest-ever number for total renewable fuels and specifically biomass-based diesel since the RFS was created. The new proposal goes in the other direction. “This rule slams the breaks on progress being made in biofuel investments and growth,” says American Soybean Association president Brad Doyle. “Instead of continuing to support available low-emission, plant-based fuel sources, EPA has changed course and seems to ignore major investments in and consumer demand for biomass-based diesel and other biofuels that exist right now.” The multi-year set rule is supposed to provide consistency and encourage investment in the biofuels industry. ASA says these insignificant volume increases for 2023-2025 could not only stifle growth but also jeopardize the existing biofuels industry.

Soy growers disappointed in EPA RFS proposal

The National Corn Growers Association appreciates Ag Secretary Tom Vilsack’s efforts by traveling to Mexico City to discuss Mexico’s pending ban on biotech corn imports that goes into effect in 2024. Vilsack spoke with Mexican President Lopez Obrador about the importance of finding an acceptable resolution on the matter. 

President Obrador indicated last week that there might be room for compromise, suggesting the country would continue allowing imports of yellow corn used for livestock feed but would block white corn, imported mainly for human consumption. 

However, yellow corn is also food grade and nutritious in hundreds of products consumers enjoy. “Any decision to block biotech crops by Mexico would be illegal under the USMCA agreement,” says NCGA President Tom Haag. “Eliminating white corn will in no way resolve this matter.” Haag also says his group highly appreciates Secretary Vilsack for “going to the mat” on this issue for American farmers.

The National Corn Growers Association appreciates Ag Secretary Tom Vilsack’s efforts by traveling to Mexico City to discuss Mexico’s pending ban on biotech corn imports that goes into effect in 2024. Vilsack spoke with Mexican President Lopez Obrador about the importance of finding an acceptable resolution on the matter. President Obrador indicated last week that there might be room for compromise, suggesting the country would continue allowing imports of yellow corn used for livestock feed but would block white corn, imported mainly for human consumption. However, yellow corn is also food grade and nutritious in hundreds of products consumers enjoy. “Any decision to block biotech crops by Mexico would be illegal under the USMCA agreement,” says NCGA President Tom Haag. “Eliminating white corn will in no way resolve this matter.” Haag also says his group highly appreciates Secretary Vilsack for “going to the mat” on this issue for American farmers.

NCGA: Mexico banning white corn a “non-starter” in negotiations

The Senate passed a bill to avoid a potentially catastrophic U.S. railroad strike and sent the bill to President Biden’s desk for his signature. Crossroads Today says the vote came after mounting pressure on lawmakers to move swiftly. Without action, a strike could have taken place on December 9, which the president said would be catastrophic to the nation’s economy. 

Railroads transport 6,300 carloads of food and farm products every day. The bill passed the Senate by a vote of 80 to 15. A separate vote on adding seven days of paid sick leave to the agreement didn’t pass. 

Biden was reluctant to override the vote against the contract by four unions but stressed the rail shutdown would devastate the economy. “I know that many in Congress were reluctant to bypass union ratification procedures, but the consequences would have been too great for working families across the country,” Biden said.

The Senate passed a bill to avoid a potentially catastrophic U.S. railroad strike and sent the bill to President Biden’s desk for his signature. Crossroads Today says the vote came after mounting pressure on lawmakers to move swiftly. Without action, a strike could have taken place on December 9, which the president said would be catastrophic to the nation’s economy. Railroads transport 6,300 carloads of food and farm products every day. The bill passed the Senate by a vote of 80 to 15. A separate vote on adding seven days of paid sick leave to the agreement didn’t pass. Biden was reluctant to override the vote against the contract by four unions but stressed the rail shutdown would devastate the economy. “I know that many in Congress were reluctant to bypass union ratification procedures, but the consequences would have been too great for working families across the country,” Biden said.

Senate passes bill to avert catastrophic rail strike

Clean Fuels Alliance America criticized the Environmental Protection Agency’s proposed Renewable Fuel Standard volumes for 2023 through 2025 for undercutting investments in biodiesel and renewable diesel capacity. 

The minor increase for biomass-based diesel volumes in 2023, 2024, and 2025 are below the industry’s existing production and ignores the clean fuels industry’s significant investments in new capacity. 

The group says those volumes provide no additional space for sustainable aviation fuel and short-circuit the nation’s carbon emission goals. 

“The volumes EPA proposed ignore the over three billion gallons currently in the market and fail to account for the planned growth of the sector,” says Kurt Kovarik, CFA vice president of federal affairs. 

“The soybean and canola industries invested over $4 billion to bring additional feedstock capacity online in the future.” An additional 2.4 billion gallons of renewable diesel capacity is coming online by 2024, and Kovarik says EPA’s numbers undercut the investments.

Clean Fuels Alliance America criticized the Environmental Protection Agency’s proposed Renewable Fuel Standard volumes for 2023 through 2025 for undercutting investments in biodiesel and renewable diesel capacity. The minor increase for biomass-based diesel volumes in 2023, 2024, and 2025 are below the industry’s existing production and ignores the clean fuels industry’s significant investments in new capacity. The group says those volumes provide no additional space for sustainable aviation fuel and short-circuit the nation’s carbon emission goals. “The volumes EPA proposed ignore the over three billion gallons currently in the market and fail to account for the planned growth of the sector,” says Kurt Kovarik, CFA vice president of federal affairs. “The soybean and canola industries invested over $4 billion to bring additional feedstock capacity online in the future.” An additional 2.4 billion gallons of renewable diesel capacity is coming online by 2024, and Kovarik says EPA’s numbers undercut the investments.

Clean Fuels Alliance says EPA proposal underestimates biomass-based diesel

The Environmental Protection Agency released the long-awaited 2023-2025 Renewable Fuel Standard blending volumes. 

The Renewable Fuels Association says the proposal creates a path for sustainable growth in the production and use of low-carbon renewable fuels. 

EPA proposes setting the 2023 RFS requirement at 20.82 billion gallons, of which 5.8 billion gallons will come from advanced biofuels and 15 billion from conventional renewable fuels. 

EPA also proposes an extra 250 million gallons in addition to the standards to address a 2017 D.C. Court decision. For 2024, the proposal is for 21.87 billion gallons, 6.62 billion gallons of advanced biofuels, and 15.25 billion of conventional. 

In 2025, EPA proposes requiring 22.68 billion gallons of total renewable fuels, including 7.43 billion gallons of advanced biofuels and 15.25 billion conventional. “The proposal solidifies a role for the RFS to reduce carbon emissions and enhance our energy security,” says RFA president and CEO Geoff Cooper.

The Environmental Protection Agency released the long-awaited 2023-2025 Renewable Fuel Standard blending volumes. The Renewable Fuels Association says the proposal creates a path for sustainable growth in the production and use of low-carbon renewable fuels. EPA proposes setting the 2023 RFS requirement at 20.82 billion gallons, of which 5.8 billion gallons will come from advanced biofuels and 15 billion from conventional renewable fuels. EPA also proposes an extra 250 million gallons in addition to the standards to address a 2017 D.C. Court decision. For 2024, the proposal is for 21.87 billion gallons, 6.62 billion gallons of advanced biofuels, and 15.25 billion of conventional. In 2025, EPA proposes requiring 22.68 billion gallons of total renewable fuels, including 7.43 billion gallons of advanced biofuels and 15.25 billion conventional. “The proposal solidifies a role for the RFS to reduce carbon emissions and enhance our energy security,” says RFA president and CEO Geoff Cooper.

EPA releases 2023-2025 RFS volumes

The National Cattlemen’s Beef Association supports the Senate version of the Protect Farmers from the SEC Act, a companion bill to legislation introduced into the House of Representatives by Oklahoma Republican Frank Lucas. 

“The Securities and Exchange Commissions’ overly broad rulemaking has the potential to increase burdens on cattle producers by requiring data that’s impossible to provide,” says NCBA Chief Counsel Mary-Thomas Hart. 

“The NCBA is proud to support the act because it ensures that federal regulators don’t overstep their jurisdiction and protects cattle producers from government red tape.” 

The act excludes agriculture from the reporting Scope 3, or supply chain, greenhouse gas emissions under the SEC’s proposed climate disclosure rule. 

While the rule is aimed at large publicly-traded companies, ag operations could be subjected to additional reporting as part of the supply chain for public restaurants and retailers. “We thank Senators Boozman and Braun for focusing on the issue,” Hart says.

The National Cattlemen’s Beef Association supports the Senate version of the Protect Farmers from the SEC Act, a companion bill to legislation introduced into the House of Representatives by Oklahoma Republican Frank Lucas. “The Securities and Exchange Commissions’ overly broad rulemaking has the potential to increase burdens on cattle producers by requiring data that’s impossible to provide,” says NCBA Chief Counsel Mary-Thomas Hart. “The NCBA is proud to support the act because it ensures that federal regulators don’t overstep their jurisdiction and protects cattle producers from government red tape.” The act excludes agriculture from the reporting Scope 3, or supply chain, greenhouse gas emissions under the SEC’s proposed climate disclosure rule. While the rule is aimed at large publicly-traded companies, ag operations could be subjected to additional reporting as part of the supply chain for public restaurants and retailers. “We thank Senators Boozman and Braun for focusing on the issue,” Hart says.

NCBA applauds protect Farmers from the SEC ACT in senate

The House of Representatives Wednesday took action to avert a pending rail strike. 

House Speaker Nancy Pelosi, on the house floor Wednesday, stated, "A shutdown would grind our economy to a halt, and every family would feel the strain,” while adding, “Small businesses wouldn't be able to get their products to market.&nbsp;&nbsp;Many of them, as I say, farmers.” 

National Farmers Union President Rob Larew says the action is “a positive step toward keeping that chain moving,” referring to the agricultural supply chain’s reliance on rail access. The resolution will now go to the Senate for consideration. 

It will need 60 votes to pass the Senate before arriving at President Biden’s desk for his signature. Pelosi pledged two actions by the House, with the first being the resolution to prevent a rail strike. 

The second action by the House is a separate measure that would give railway employees seven days of paid sick leave per year.

The House of Representatives Wednesday took action to avert a pending rail strike. House Speaker Nancy Pelosi, on the house floor Wednesday, stated, "A shutdown would grind our economy to a halt, and every family would feel the strain,” while adding, “Small businesses wouldn't be able to get their products to market.&nbsp;&nbsp;Many of them, as I say, farmers.” National Farmers Union President Rob Larew says the action is “a positive step toward keeping that chain moving,” referring to the agricultural supply chain’s reliance on rail access. The resolution will now go to the Senate for consideration. It will need 60 votes to pass the Senate before arriving at President Biden’s desk for his signature. Pelosi pledged two actions by the House, with the first being the resolution to prevent a rail strike. The second action by the House is a separate measure that would give railway employees seven days of paid sick leave per year.