On Tuesday, the University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI) released its June Baseline Update for U.S. Agricultural Markets. The update incorporates government payment programs that were announced before June 1, 2020 and analyzes some of the market impacts of those programs.
Farm Policy News
EPA Offers Clarity to Farmers in Light of Dicamba Court Ruling
Late last week, Wall Street Journal writer Jesse Newman reported that, “Bayer AG was dealt a setback in its efforts to provide farmers with new weapons against hard-to-kill weeds, after a federal appeals court vacated the Trump administration’s approval of a controversial weedkiller made by the agribusiness giant.”
Soybean Exports in Focus
Reuters columnist Karen Braun indicated on Friday that, “U.S. soybean exports had a dismal April performance and possibly an even worse showing in May as shipments to China remain historically low, but corn exports hit a one-year high in April and improved on those volumes last month.”
Phase One Trade Deal Progress: USTR Feels “Very Good”
Earlier this week, Bloomberg News reported that, “American soybean exporters sold several cargoes to Chinese state-run buyers, according to people familiar with the matter, showing that some transactions are still going through even after officials in Beijing ordered a pause in some purchases.”
FY 2020 U.S. Agricultural Exports Forecast Lowered
Last week, USDA’s Economic Research Service (ERS) and Foreign Agricultural Service (FAS) released the Outlook for U.S. Agricultural Trade, a quarterly report examining U.S. agricultural trade.
Federal Reserve: Observations on the Ag Economy- May 2020
On Wednesday, the Federal Reserve Board released its May 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.
Phase One Purchases Behind Schedule, as China Halts Some U.S. Farm Imports
David J. Lynch and Emily Rauhala reported on the front page of Saturday’s Washington Post that, “President Trump on Friday leveled an extraordinary broadside at the Chinese government, accusing it of a comprehensive ‘pattern of misconduct’ and ordering U.S. officials to begin the process of revoking Hong Kong’s special status under U.S. law.”
COVID-19 Impacts on Livestock Markets Persist, While Fed Says Ag Sector “Under Severe Stress”
Recent news articles continue to highlight the ripple effects COVID-19 is having on some aspects of the U.S. livestock market. Meanwhile, the minutes from the Fed’s April meeting noted that, “The agricultural sector was under severe stress due to falling prices for some farm commodities and pandemic-related disruptions, such as the closing of some food processing plants.”
China Reiterates Pledge to Implement Phase One Agreement
Bloomberg News reported yesterday that, “China reiterated a pledge to implement the first phase of its trade deal with the U.S. despite setbacks from the coronavirus outbreak, and as tensions escalate between the world’s two biggest economies.”
Biofuel Issues Abound: Blending Quotas, RFS Waivers, COVID-19 Relief for Ethanol, and Gasoline Demand
Earlier this week, Bloomberg writer Jennifer A Dlouhy reported that, “The Environmental Protection Agency has drafted a plan to slightly lift biofuel-blending targets next year, while so far skirting potentially controversial decisions about exempting refineries from U.S. mandates to use plant-based fuels, according to three people familiar with the matter.”
USDA Announces Details of Coronavirus Food Assistance Program (CFAP) Aid Payments
Bloomberg writers Mike Dorning and Teaganne Finn reported yesterday that, “President Donald Trump announced rules Tuesday for a $19 billioncoronavirus farm aid package covering a broad swath of U.S. agriculture that producers can begin claiming by next week.”
A Closer Look at U.S. Pork Exports from USDA’s Economic Research Service
Yesterday, USDA’s Economic Research Service (ERS) released its monthly Livestock, Dairy, and Poultry Outlook, which included updated information regarding U.S. pork exports. Illinois is a leading pork producing State.
Amid Phase One Frustration, China Asks Food Companies To Boost Commodity Supplies as COVID-19 Fears Linger
David J. Lynch reported on the front page of Saturday’s Washington Post that, “President Trump on Friday linked China’s handling of the initial coronavirus outbreak with his irritation over slow progress toward implementing the trade deal he signed with Beijing in January, saying ‘it’s not like we’re thrilled’ with the Chinese government.”
Federal Reserve Ag Credit Surveys- 2020 First Quarter Farm Economy Conditions
On Thursday, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of 2020. Earlier this month, the Federal Reserve Bank of Minneapolis released its first quarter agricultural credit conditions survey, while the Federal Reserve Bank of Dallas released its Agricultural Survey for the first quarter of 2020 earlier this year.
U.S., China Trade Issues: Meeting Phase One Targets a “‘Herculean Task”
Emiko Terazono and Sun Yu reported today at The Financial Times Online that, “Brazil’s soyabean shipments to China hit a monthly record of more than 9m tonnes in April, casting doubt on whether Beijing can meet the first-year targets of its trade deal with Washington.”
COVID-19 Roils Ag Markets- Income, Food Prices, Production Impacted as Legislators Weigh In
Washington Post writers David J. Lynch, Annie Gowen and Laura Reiley reported this week that, “President Trump promised this year to deliver a financial bonanza for American farmers, boosted by two historic trade deals that would free them from their dependence on government bailouts.”
As Americans Get Back Behind the Wheel, Better News for Ethanol
Bloomberg writer Isis Almeida reported last week that, “There’s light at the end of the tunnel for the battered American ethanol market, according to producer Green Plains Inc.”
COVID-19 Has Caused an “Agricultural Tsunami” – While USDA and DOJ Investigate Livestock Market Issues
Donnelle Eller reported on the front page of Sunday’s Des Moines Register that, “The coronavirus has caused an agricultural tsunami that’s ripped through Iowa and the nation. Markets have been disrupted as schools, restaurants and hotels have shuttered, and meatpacking plants are slowing or closing as about 10,500 workers — including 1,650 in Iowa — have tested positive for COVID-19.”
U.S., China Trade Talks Remain “On Track,” Phase One Obligations Expected To Be Met
Bloomberg News reported last night that, “The top trade negotiators for China and the U.S. pledged to create favorable conditions for implementation of the bilateral trade deal and cooperate on the economy and public health.”
Sec. Perdue Expects Meat Plants to Reopen Within 10 Days
Sky Chadde and Kyle Bagenstose reported on the front page of today’s USA Today that, “The meatpacking industry hit a grim milestone this week when the number of coronavirus cases tied to outbreaks at its beleaguered plants passed 10,000, according to USA TODAY and Midwest Center for Investigative Reporting tracking.”