Last week, Bloomberg writers Jennifer A Dlouhy and Jennifer Jacobs reported that, “Trump administration officials have decided to pare the number of oil refineries granted waivers from biofuel mandates, according to two people familiar with the matter.”
Farm Policy News
Secretary Perdue Discusses MFP at House Ag Committee Hearing
Bloomberg writer Mike Dorning reported on Wednesday that, “U.S. Agriculture Secretary Sonny Perdue sees a ‘less than 10%’ chance that U.S. farmers will get another round of trade aid this year, despite a tweet from President Donald Trump last month raising the possibility.”
A Closer Look at Phase 1 Commitments, as Coronavirus “Has Scrambled” the Outlook
Writing recently at the CARD (Center for Agricultural and Rural Development) Agricultural Policy Review, from Iowa State University (“The Phase One Trade Deal: Projections and Implications”), Chad Hart and Lee Schulz stated that, “The Phase One deal alters the agricultural trade landscape—China has agreed to specific targets for agricultural purchases for this year and next year.”
A Brief Look at Spring Flooding Variables
Bloomberg writer Brian K Sullivan reported on Friday that, “For the second year in a row, much of the U.S. is primed to suffer multi-billion dollar flood losses, with farmers already steeling themselves for planting delays.”
China Purchase of U.S. Sorghum Highlights Willingness to Buy When it Makes Economic Sense
Bloomberg writers Isis Almeida and Michael Hirtzer reported on Tuesday that, “China is back in the market for U.S. sorghum this week, signaling the world’s top food importer is willing to buy U.S. agricultural products only when they are cheaper.”
The 2020 Outlook for U.S. Agriculture From USDA’s Chief Economist
Speaking on Thursday at USDA’s Agricultural Outlook Forum in Arlington, Virginia, USDA Chief Economist Robert C. Johansson provided a broad outlook for U.S. agriculture. Today’s update provides an overview of key aspects of Dr. Johansson’s presentation.
Highlights from USDA Trade and Commodity Outlook Reports
Following this month’s release of the USDA’s Long-Term Projections, on Thursday, the Department released its quarterly Outlook for U.S. Agricultural Trade. This update provided an overview of agricultural trade based on the 2020 fiscal year, which began in October, months before the U.S. and China signed the Phase-One trade agreement. Recall that Phase One farm purchase commitments are based on the calendar year.
China Considering U.S. Farm Purchases by March as Coronavirus Impacts Persist
Bloomberg News reported this week that, “China is considering making some purchases of U.S. agricultural goods by early March as a way to show it’s still committed to its phase one trade deal, according to people familiar with the matter.”
Federal Reserve Ag Credit Surveys- 2019 Fourth Quarter Farm Economy Conditions
Last week, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the fourth quarter of 2019. And earlier this year, the Federal Reserve Bank of Dallas released its Agricultural Survey for the fourth quarter of 2019. Meanwhile, a recent update posted at the Federal Reserve Bank of St. Louis, which has also historically released quarterly farm credit conditions, stated that, “The St. Louis Fed’s Agricultural Finance Monitor has been discontinued.” Today’s update highlights core findings from the Fed reports.
USDA Agricultural Projections to 2029- Focus on Corn, Soybeans
On Friday, the U.S. Department of Agriculture released its 10-year projections for the food and agricultural sector. Today’s update highlights aspects of the report that focused on corn and soybeans.
Coronavirus Cases Increase, But More U.S. Soybean Sales Expected
Wall Street Journal writers Wenxin Fan, Natasha Khan, and Chao Deng reported this week that, “New cases of the coronavirus rose sharply after Chinese authorities changed the criteria for diagnosing the illness, raising questions about how soon the outbreak will peak.”
2020 Farm Sector Income Forecast, February
The USDA’s Economic Research Service (ERS) indicated on Wednesday that, “Net cash farm income is forecast to decrease $10.9 billion (9.0 percent) to $109.6 billion in 2020, relative to the 2019 forecast. Net farm income, a broader measure of profits, is forecast to increase $3.1 billion (3.3 percent) from 2019 to $96.7 billion in 2020.”
China Reassures U.S. on Phase One Trade Purchase Goals
Bloomberg writer Peggy Collins reported late last week that, “China’s leader Xi Jinping reassured U.S. President Donald Trump in a phone call that Beijing would meet purchase goals outlined in the recent trade deal between the countries — despite the impact of the coronavirus on the Asian nation, White House economic adviser Larry Kudlow said Friday.”
China to Cut Tariffs on Some U.S. Imports as Coronavirus Worries Linger
Wall Street Journal writer Lingling Wei reported on Thursday that, “China said it would slash tariffs on $75 billion of U.S. imports in half as part of its efforts to implement a recently signed trade agreement with Washington.”
“Export Boom” From Phase One Deal Potentially Delayed by Coronavirus
Bloomberg writer Ana Monteiro reported on Tuesday that, “The ‘export boom’ from the U.S.’s trade deal with China will be delayed because of the coronavirus outbreak, but the economic impact ‘is going to be minimal,’ White House economic adviser Larry Kudlow said.”
Sec. Perdue Highlights EU Ag Trade Issues
Bloomberg writer Jonathan Stearns reported last week that, “Agriculture Secretary Sonny Perdue became the latest American official to face European Union complaints about U.S. threats to global trade rules and punitive tariffs on EU farm goods.”
After U.S., China Phase One Deal, Coronavirus Adds Additional Wrinkle
Reuters writers Hallie Gu, Muyu Xu and Tony Munroe reported last week that, “China’s imports of U.S. soybeans surged in December from a year earlier, data showed on Friday, as China ramped up purchases during a thaw in the two country’s trade war.”
President Trump Signs the USMCA
New York Times writers Ana Swanson and Emily Cochrane reported on Wednesday that, “President Trump signed the revised North American Free Trade Agreement into law on Wednesday, fulfilling a key campaign promise and bringing more than two years of tumultuous negotiations over the continent’s trade rules to a close.”
Federal Appellate Court Decision, and GAO Review Highlight Biofuel Waiver Issues
In separate developments this month, a federal appellate court and the U.S. Government Accountability Office, have weighed in with actions that could impact how biofuel waivers that exempt oil refineries from Renewable Fuel Standard requirements are granted. Today’s update looks briefly at each of these issues.
Costs of Corn and Soybean Production in 2020, ISU Report
In a recent update from Iowa State University Extension (“Estimating costs of crop production vital for 2020
farm businesses”), Alejandro Plastina explained that, “Thin profit margins in corn and soybean production have become the norm over the past five years, increasing the need for proper budgeting and marketing strategies among crop producers.”