Bloomberg News reported on Wednesday that, “U.S. and Chinese negotiators plan to discuss progress of their trade deal in the coming days, with Beijing pushing to widen the agenda to include Washington’s recent crackdown on businesses including TikTok and WeChat.”
Farm Policy News
Farm Bankruptcies, Drought, Derecho, and Land Values: Recent Ag Econ Variables in Focus
Wall Street Journal writer Jesse Newman reported last week that, “More U.S. farmers are filing for bankruptcy, as federal payments projected to reach record levels this year fall short of compensating for the coronavirus pandemic and a yearslong slump in the agricultural economy.”
Research Shows the Profile of Brazilian Digital Agriculture During the Pandemic
An unprecedented survey carried out by the Brazilian Agricultural Research Corporation (Embrapa) reveals the behavior around the use of digital solutions in the field in Brazil during of the Covid-19 pandemic.
China Soybean Imports Robust in July, But Soy a Lower Component of U.S. Farm Exports
Bloomberg News reported on Thursday that, “China’s soybean imports were the second highest on record in July as processors increased purchases of cheaper Brazilian supplies and demand for hog feed recovered.”
Department of Energy Finishes Recommendation on Retroactive RFS Exemption Requests
Reuters writer Stephanie Kelly reported this week that, “The U.S. Department of Energy has recommended that some of the oil refiners that applied for retroactive exemptions from the nation’s biofuel blending law be granted partial relief, two sources familiar with the matter said on Tuesday.”
U.S., China to Discuss Phase One Trade Deal Later this Month
Lingling Wei and Bob Davis reported in today’s Wall Street Journal that, “The U.S. and China have agreed to high-level talks on Aug. 15 to assess Beijing’s compliance with the bilateral trade agreement signed early this year, according to people briefed on the matter.”
New Locust Clouds Appear in Argentina and Country Declares State of Agricultural Emergency
The Argentine Ministry of Agriculture recently decreed a state of agricultural emergency after receiving an alert for a new locust cloud. Currently, there are four monitored regions: Formosa, Chaco, Salta and Entre Ríos provinces.
China Makes (Another) Record U.S. Corn Purchase in July, But Achieving Phase One Targets May Still be a Stretch
Bloomberg writers Elizabeth Rembert and Michael Hirtzer reported last week that, “China took another step toward meeting agricultural commitments made in the phase one trade agreement with the U.S. with its biggest-ever purchase of American corn.”
Senate Releases Draft COVID Relief Measure (HEALS Act), a Follow-Up to CARES Act, but Different From House Passed HEROES Act
Washington Post writers Erica Werner, Jeff Stein and Seung Min Kim reported earlier this week that, “A fraught showdown over the next coronavirus relief bill got underway Monday as Senate Republicans unveiled a $1 trillion package [the Health, Economic Assistance, Liability Protection and Schools Act, or HEALS Act], and congressional Democratic leaders met with top White House officials.”
China Requires Covid-19 Tests on Meats and Calls for Mass Testing of Brazilian Meatpackers
Last week, the National Health Commission of China published a series of guidelines for the meat processing industry from several countries, such as Brazil. One includes the requirement for nucleic acid testing to identify the new coronavirus in fresh products.
Perspective on U.S., China Trade, as Phase One Purchases “Strong” this Summer
Last week, the USDA’s Foreign Agricultural Service (FAS) released its “2019 U.S. Agricultural Export Yearbook,” that provided “a statistical summary of U.S. agricultural commodity exports to the world and the United States’ primary trading partners.”
Kansas City Fed: Agricultural Financing Activity Slowed in Second Quarter
In an update last week from the Federal Reserve Bank of Kansas City (“Agricultural Lending Consistently Slower”), Nathan Kauffman and Ty Kreitman stated that, “Agricultural financing activity slowed in the second quarter, according to the Survey of Terms of Lending to Farmers.”
Science Magazine Study on Illegal Deforestation Causes a Strong Reaction From the Brazilian Government
A study published in the magazine Science caused a strong reaction from the Brazilian government last week. The publication shows that at least 17% of the meat and 20% of soybeans from the Amazon and the Cerrado that were exported to the European Union may have been produced in illegally deforested areas.
Farm State Lawmakers: Ethanol a Priority in Senate COVID Relief Package
Reuters writer Stephanie Kelly reported late last week that, “U.S. lawmakers from Iowa are trying to add aid for the biofuels industry into a pending coronavirus relief package in the Senate, U.S. Senator Chuck Grassley said on Friday.”
Federal Reserve: Observations on the Ag Economy- July 2020
On Wednesday, the Federal Reserve Board released its July 2020 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.
China Makes Record U.S. Corn Purchase
Bloomberg writers Michael Hirtzer and Isis Almeida reported on Tuesday that, “China made its biggest purchase ever of U.S. corn in another boost to meeting agriculture targets set in the countries’ first-phase trade accord.”
Brazilian Agribusiness Exports Set a Record, as Domestic Supply Difficulties Begin
Brazilian agribusiness exports were at record levels in June 2020, with foreign sales of US$ 10.17 billion. There was a growth of 24.5% in relation to exports in June 2019 (US$ 8.17 billion). The result was released last Friday by the Department of Commerce and International Relations of the Ministry of Agriculture of Brazil.
Phase-Two Deal With China Unlikely, As U.S. Corn Exports Continue
Josh Zumbrun and Catherine Lucey reported on the front page of Saturday’s Wall Street Journal that, “President Trump damped expectations for a promised phase-two trade pact with China on Friday, saying the relationship between the countries has been too badly damaged by the coronavirus pandemic.”
Amid Weaker Economic Conditions, Reports Suggest Farmland Values Holding Steady
Last week, the Federal Reserve Bank of Dallas released its Agricultural Survey. In part, the quarterly report stated that, “Bankers responding to the second-quarter survey reported overall weaker conditions across most regions of the Eleventh District.”
U.S. Corn and Cotton to China, But Buying Pace Needs a Big Boost to Meet Phase One Pledges
Bloomberg writers Michael Hirtzer and Dominic Carey reported last week that, “While U.S. shippers sent sizable orders of wheat, corn, cotton, pork and other agriculture goods to China in May, China would need to pick up the buying pace further to meet its trade-deal pledges.”