Wall Street Journal writers Kirk Maltais and Jacob Bunge reported on Friday that, “The Trump administration outlined a plan to boost biofuel demand, aiming to ease Farm Belt frustrations over recent changes to federal policies affecting the production of ethanol.”
Farm Policy News
Biofuels Blending Agreement at Hand
Bloomberg writers Jennifer A Dlouhy, Mario Parker, and Jennifer Jacobs reported yesterday that, “The Trump administration has agreed to a new plan for boosting renewable fuels and offsetting waivers exempting oil refineries from mandates to use them, according to three people familiar with the matter who asked for anonymity before a formal announcement.”
Executive Branch Quiet About Potential Biofuels Blending Agreement
Last week, Reuters writers Jarrett Renshaw and Stephanie Kelly reported that, “The U.S. Environmental Protection Agency granted some refineries full waivers from biofuels regulation for the 2018 compliance year, even though the Department of Energy had recommended partial exemptions, according to an EPA memo seen by Reuters.”
China Buys U.S. Soybeans & Explores Soymeal Exports from South America, as Trade Talks Set for October
Reuters writer Karl Plume reported last week that, “Chinese importers bought about 10 boatloads of U.S. soybeans on [Sept. 23rd] following deputy-level trade talks in Washington [Sept. 19th – 20th] that were overshadowed by the abrupt cancellation of a U.S. farm state visit by Chinese agriculture officials.”
U.S., Japan Sign Partial Trade Agreement That Lowers Agricultural Tariffs
Wall Street Journal writers Vivian Salama and Josh Zumbrun reported yesterday that, “President Trump and Japan’s Prime Minister Shinzo Abe signed a trade-enhancement agreement that will lower agricultural tariffs in Japan, industrial tariffs in the U.S. and set new rules for digital trade between the world’s first- and third-largest economies.”
Farmers Anxious About Tentative Agreement on Executive Branch Biofuels Blending Rules
Bloomberg writers Jennifer A Dlouhy, Jennifer Jacobs, and Josh Wingrove reported last week that, “Global disputes over trade and nuclear weapons have consumed plenty of President Donald Trump’s time and attention — but a narrow, domestic clash over U.S. biofuel policy may be giving those issues competition.”
Despite Commodity Purchases, Trump Uninterested in “Partial” Trade Deal, as Chinese Cancel U.S. Farm Visit at U.S. Request
Wall Street Journal writer Vivian Salama reported last week that, “President Trump said China has started to buy U.S. agricultural products, and signaled optimism that his administration will be able to sign a trade deal with China before the 2020 presidential election.”
Trump Administration Rolls Back “Waters of the U.S.” Rule
Last week, New York Times writers Lisa Friedman and Coral Davenport reported that, “The Trump administration on [September 12] announced the repeal of a major Obama-era clean water regulation that had placed limits on polluting chemicals that could be used near streams, wetlands and other bodies of water.”
Progress on a Tentative Agreement on Biofuels Blending
Reuters writers Stephanie Kelly and Jarrett Renshaw reported last week that, “White House officials on Wednesday urged U.S. biofuel producers and oil refiners to accept a deal to lift biofuel blending mandates in 2020, saying overlong negotiations could make it hard to enact the change in time for next year, sources familiar with the discussions said.”
Trade Tensions Simmer; China Purchases U.S. Farm Goods as African Swine Fever Impacts Pork Market
On Thursday, Wall Street Journal writers Lingling Wei, Chao Deng and Josh Zumbrun reported that, “China is looking to narrow the scope of its negotiations with the U.S. to only trade matters, seeking to put thornier national-security issues on a separate track in a bid to break deadlocked talks with the U.S.”
Federal Reserve: Observations on the Ag Economy- August 2019
Last week, the Federal Reserve Board released its August 2019 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.
U.S., China Trade Talks Set to Resume; Agricultural Export Markets Continue to Adjust
Bloomberg writers Michael Hirtzer and Dominic Carey reported last week that, “The trade war between the U.S. and China continues to surprise agricultural markets, even delivering an unexpected reprieve for American farmers who have otherwise been roiled by the conflict.”
Executive Branch Biofuels Draft Plan Falls Short of Expectations
Reuters writers Chris Prentice and Stephanie Kelly reported late last week that, “U.S. President Donald Trump is expected to meet with Department of Agriculture and Environmental Protection Agency officials late Thursday to consider a plan that would include boosting biofuels requirements for 2020 by 1 billion gallons, according to two sources familiar with the discussions.”
On Ethanol, President Trump Plans to Regain Farmers’ Trust
Late last month, Des Moines Register writer Stephen Gruber-Miller reported that, “Gov. Kim Reynolds called President Donald Trump ‘an advocate for farmers’ on [August 27th], but said he may not have understood the damage caused by the ethanol waivers his administration granted.”
USDA Agricultural Trade Outlook- FY19 Export Forecast Lowered Again
Gary Crawford explained in a segment for USDA Radio on Thursday that, “Back in May, Agricultural Department analysts were forecasting this 2019 Fiscal Year’s U.S. ag exports to be $137 billion, down $4.5 billion from their previous forecast, and down $6.3 billion from 2018…In their latest look [on Thursday], they have sliced another $2.5 billion off the forecast.”
2019 Farm Sector Income Forecast, August
The USDA’s Economic Research Service (ERS) indicated on Friday that, “Net farm income, a broad measure of profits, is forecast to increase $4.0 billion (4.8 percent) from 2018 to $88.0 billion in 2019. Net cash farm income is forecast to increase $7.6 billion (7.3 percent) to $112.6 billion.”
U.S. and Japan Reach a Trade Deal in Principle
Wall Street Journal writer Rebecca Ballhaus reported earlier this week that, “President Trump said Sunday the U.S. and Japan had reached a trade deal ‘in principle’ that would pave the way for more U.S. farm exports to Japan, while dropping the threat of increased U.S. tariffs on Japanese cars.”
To Mitigate the Fallout from Waivers, Trump Administration Looks at Biofuel-Blending Quotas
Late last week, Bloomberg writers Jennifer A Dlouhy and Mario Parker reported that, “Top Trump administration officials met Thursday to consider options for quelling a backlash in politically important farm states over recent biofuel policy moves, including revoking waivers given to some oil refineries from requirements they use renewable fuel such as corn-based ethanol.”
As U.S, China Trade War Escalates, American Farm Goods are Targeted Again
Alan Rappeport and Keith Bradsher reported on the front page of Saturday’s New York Times that, “On Friday, China said it would increase tariffs on $75 billion worth of American goods, including crude oil, automobiles and farm products like soybeans, pork and corn in response to Mr. Trump’s plan to tax an additional $300 billion worth of Chinese goods in September and December.”
Impacts of Unprecedented Spring Weather Linger as Yield Assessments Unfold
Wall Street Journal writer Lauren Silva Laughlin reported earlier this month that, “Losses are popping up in farmers’ income statements and the pain can be seen in the share prices of the companies that depend on them. After a challenging planting season due to wet weather, trade uncertainty has ravaged farm profitability. Flooding throughout the spring caused what JPMorgan Chase deemed a ‘planting season from hell.'”