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.”
Farm Policy News
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.”
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.”