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Mexico-U.S. to Focus on New Tariff Threat

4 years, 10 months ago National AG News

Mexico is warning of possible retaliation if President Trump moves forward with planned tariffs on Mexico due to border crossings. Mexican officials flew to Washington over the weekend ahead of a planned summit Wednesday. President Trump over the weekend continued his pressure on Mexico, taking to Twitter to say, “We want action, not talk,” regarding the border crisis. Trump says he will impose the tariffs to pressure Mexico to block Central American migrants from crossing the border into the United States. Those tariffs would increase by five percent every month through October, capping at 25 percent. Advocacy group Farmers for Free Trade says in a statement the move by Trump “will likely invite retaliation on the products we export to Mexico,” including agricultural products, electronics, and car parts, among others. The group says tariffs on imports from Mexico could lead to $25 billion in higher costs for American consumers. The tariffs promised by Trump were announced as the U.S.-Mexico-Canada Agreement made progress towards implementation in all three member countries last week.

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Planting Progress Remains Slow

The weekly Crop Progress report shows little progress in planting the nation's corn and soybean crops as unrelenting rains continue to inundate much of the corn belt. Corn plantings across the nation increased to 67 percent, compared to 58 percent a week ago and the five-year average of 96 percent. Just 39 percent of estimated soybean acres have been planted, compared to 29 percent last week, and the five-year average of 79 percent. Indiana, Missouri, Ohio and South Dakota have yet to plant 20 percent of estimated soybean acres. The National Weather Service says another three inches of rain could fall over parts of the Western corn belt this week, adding more moisture to saturated and flooded fields. Meanwhile, a Farm Journal poll shows nearly one-third of corn farmers will file for prevent plant payments on some of their farmland in 2019. The poll found less than half, 45 percent, do not plan to file for prevent plant payment. However, 21 percent remain undecided. The poll asked 1,017 growers regarding their prevent plant intentions.

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Retailers Expanding E15 Purchase Points

Midwest convenience store chain Casey’s General Stores and Growth Energy Monday announced the retailer will expand E15 offerings to more than 60 new sites this summer. E15, known by consumers as Unleaded 88, is a fuel with 15 percent ethanol and is approved for all cars 2001 and newer. The two say the move follows the Environmental Protection Agency’s final rule to allow for year-round sales of E15 announced Friday in Iowa. A Casey’s spokesperson says, “we are expanding E15 at a faster pace to stay ahead of our competition,” due to the rule change. Growth Energy CEO Emily Skor welcomed the move from Casey’s, adding that conversations with other retailers show “they will soon be joined by others who’ve been waiting for this day.” Founded in 1952 in Des Moines, Iowa, Casey’s General Stores has grown to include more than 2,100 convenience stores in 16 states in the Midwest and the South. E15 is currently sold at more than 1,800 stations in 31 states across the nation.

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Study: Consumer Knowledge of Chicken Production Environmental Impact Low

A new survey unveiled by the National Chicken Council shows knowledge of the environmental impact of chicken among consumers is low. The research sought to find how deeply consumers understand sustainable food practices as it relates to broiler chicken production, an industry the National Chicken Council says maintains one of the lowest environmental footprints in animal agriculture. According to survey results, only half of survey participants, or 51 percent,  are moderately knowledgeable about chicken's impact on the environment, while three-quarters, or 71 percent, are moderately knowledgeable about how chicken is produced. While most are familiar with topics related to animal welfare and processing, knowledge related to sustainability topics in the industry like water usage, greenhouse gas emissions and water impact is limited. In addition, when it comes to factors driving purchase decisions today, the environmental impact of chicken is as important as animal welfare. However, 82 percent of respondents say taste, while 65 percent say price, are the top drivers of purchase decisions.

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Corteva Agriscience Completes Separation from DowDuPont

Corteva announced Monday the company has successfully completed its separation from DowDuPont, becoming a global “pure-play” agriculture company. American Soybean Association President Davie Stephens, along with National Corn Growers Association President Lynn Chrisp, joined Corteva Agriscience for the opening bell ceremony at the New York Stock Exchange Monday celebrating its launch. Jim Collins, Chief Executive Officer of Corteva Agriscience says the company is “well positioned to compete and win by providing farmers the complete solution they need for sustainable, long-term growth and improved profitability.” The distribution of Corteva common stock was completed on June 1, with each DowDuPont stockholder of record receiving one share of Corteva common stock for every three shares of DowDuPont common stock held as of the close of business on May 24, 2019. With a presence in more than 140 countries, Corteva Agriscience generated $14 billion in net sales in 2018. The Company has more than 150 research and development facilities and more than 65 active ingredients.

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USDA Celebrates National Homeownership Month

Highlighting it’s rural development efforts, the Department of Agriculture is celebrating National Homeownership Month. USDA’s Rural Development agency helps residents of America’s small towns and cities purchase, maintain and improve homes in rural areas. USDA Single Family Housing programs have served more than 4.4 million families in rural America since President Truman signed the Housing Act in 1949. Acting Assistant to the Secretary for Rural Development Joel Baxley says through USDA’s efforts, the agency is “supporting benefits that extend far beyond the home, resulting in stronger, more prosperous rural communities.” Loans and grants from USDA Rural Development assist in purchasing homes in rural areas, along with improvement to infrastructure to homes, such as removing and replacing faulty wiring. USDA Rural Development also provides loans and grants to help expand economic opportunities and create jobs in rural areas. The assistance supports infrastructure improvements, business development, housing, community facilities such as schools, public safety and health care, and high-speed internet access in rural areas. To learn more, visit www.rd.usda.gov.

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More filling stations will likely sell E15 during the summer driving season, now that EPA’s finalized a rule allowing year-round sales of the fuel. But, an ethanol industry official says battles over the renewable fuel could continue.

Renewable Fuels Association President Geoff Cooper says up to 1,800 filling stations can immediately sell 15-percent ethanol-blended gasoline during the summer months, while others that don’t now sell it, reconsider…

“The longer-term impact is, yes, absolutely, there are retailers that have told us that they weren’t interested in E15, because they couldn’t sell it year-round.  Now, that’s not the case, they can sell it year-round…and I think you’ll see a number of retail chains, kind of, revisit the question of whether to add E15 or not, and I think you’ll see a lot of them move forward with E15.”

Cooper meantime, dismisses EPA’s denials that the agency’s indiscriminately given out blending waivers to undeserving refiners…

“Well, we certainly would disagree, based on documents that we’ve seen, as part of our litigation against EPA on small refinery exemptions.  We would disagree, based on some things that have been reported in the press, about who is getting these exemptions, and why.  If EPA undermines today’s action by granting more small refinery exemptions, then this is all for naught.”

Cooper says the Renewable Fuels Association will continue its fight to stop the waivers and restore lost volumes.

Separately, Cooper says a feared rules change to restrict on-site retail E15 blending, never happened…

"It isn't entirely clear, how EPA is planning to regulate or manage parties who are making E15 that way…but it does seem like they're essentially saying, 'look, we're not finalizing any substantive changes to the status quo, to the current practices."

EPA’s Air Office chief Bill Wehrum told reporters Friday, any tightening of on-site E15 blending requirements, by mixing E85 and E10, is being handled separately.

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