Late last month, Des Moines Register writer Donnelle Eller reported that, “Rain has slowed the harvest across the state in recent days. National Weather Service data for Des Moines showed that central Iowa on [October 23rd] matched the October rainfall record of 7.29 inches, set in 1941. Any more rain in the remaining eight days of the month would set a new record — a landmark in a year that already is one of the wettest in recorded Iowa history.”
Farm Policy News
USDA Baseline Background, Outlook, and Recent Projections
Last week, the USDA’s Economic Research Service (ERS) released a report discussing the USDA’s baseline, while the USDA’s Office of the Chief Economist (OCE) released selected tables from the Department’s Agricultural Projections to 2029. Today’s update highlights aspects from both the ERS report, and the OCE projections that focused on soybeans and corn.
China’s Ag Import Capacity Considered as Phase One Trade Talks Continue
Reuters writers Heather Timmons and Hallie Gu reported last week that, “U.S. President Donald Trump’s demand that Beijing commit to big purchases of American farm products has become a major sticking point in talks to end the Sino-U.S. trade war, according to several people briefed on the negotiations.”
Small-Refinery Exemptions Discussed at House Committee Hearing
Reuters writer Richard Valdmanis reported this week that, “The U.S. oil and corn industries continued a long-running public battle over America’s biofuels policy on Tuesday during a Congressional hearing about the Trump administration’s use of ‘secret waivers’ for refineries.
EPA Biofuels Blending Plan Disconnect- Additional Background on SREs
Last week, Bloomberg writer Jennifer A Dlouhy reported that, “Administration officials warned that an EPA plan for boosting biofuel-blending requirements violated the spirit of a deal brokered by President Donald Trump. The White House blessed it anyway.”
U.S., China Phase One Trade Deal Progresses, as China Purchases Some U.S. Soybeans
Bloomberg writers Michael Hirtzer and Tatiana Freitas reported last week that, “China is clearing the way for more purchases of American soybeans in an apparent boon for U.S. farmers. There’s just one thing getting in the way — cheap Brazilian supplies.”
Kansas City Fed: Farm Lending Growth Slows, But Weakness in the Sector Persists
In an update last week from the Federal Reserve Bank of Kansas City (“Farm Lending Slows but Remains High”) Cortney Cowley and Ty Kreitman stated that, “Growth in farm lending activity slowed in the third quarter of 2019;” but, “Despite a slowdown in the pace of debt accumulation, weaknesses in the sector persisted, continuing to pressure farm cash flows and agricultural credit conditions.”
Progress on Phase One Trade Deal with China, Chinese Soy Processors Granted Additional Tariff Waivers
Reuters writer Dominique Patton reported last week that, “China is still a long way from forking out $50 billion for farm goods from the United States, agriculture industry analysts said on [Oct. 14th], cautioning that getting there is contingent on removing substantial technical and political hurdles.”
Federal Reserve: Observations on the Ag Economy- October 2019
On Wednesday, the Federal Reserve Board released its October 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.
Farmers and Lawmakers Dismayed Over Details in Proposed EPA Ethanol Formula
Reuters writer Stephanie Kelly reported yesterday that, “The Trump administration, in an effort to mend fences with the powerful corn lobby, proposed a new formula on Tuesday to boost biofuels demand, but the proposal instead only provoked more consternation from the industry.”
Freezing Temperatures and Snow Bring Harvest Challenges
Late last week, Bloomberg writers Brian K Sullivan and Ashley Robinson reported that, “A large snowfall is set to sweep out of the Rocky Mountains later this week, bringing snow by the foot across the Dakotas, slowing wheat harvests and ending any chance for still-maturing corn crops to flourish.”
U.S., China Take Initial Step on Trade Deal; China Agrees to Buy $40-$50 Billion in U.S. Farm Goods Amid Rough Details
William Mauldin, Chao Deng and Vivian Salama reported in Saturday’s Wall Street Journal that, “The U.S. and China took an initial step to cement a trade agreement that had been derailed, with Washington saying on Friday it would shelve a planned increase in tariffs on goods imported from China, while Beijing would increase purchases of U.S. agricultural products.”
China Offers Agricultural Purchases as Trade Talks Set to Resume
Tom Mitchell reported on Wednesday at The Financial Times Online that, “Chinese officials are offering to increase purchases of US agricultural products as they seek an interim agreement between Beijing and Washington that will stave off a new round of tariff hikes on October 15, according to people briefed on the two countries’ ongoing negotiations.”
Chinese Purchases of U.S. Soybeans Continue, as Range of Topics in Trade Talks Narrows
Bloomberg News reported last week that, “Chinese companies bought U.S. soybeans after the Xi Jinping administration issued more waivers from its retaliatory import tariffs, according to people familiar with the situation.”
Biofuels Agreement Announcement Welcomed, but Details Lacking
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.”
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.”