6 years ago by Jim Dewey
A group of Senators from the Midwest are urging President Donald Trump to cease Renewable Fuel Standard waivers for refiners. The waivers, intended for small, struggling refiners, has been reportedly issued to some of the nations largest, essentially letting them ‘off the hook’ for their biofuel blending responsibility. The Senators, including Iowa’s Chuck Grassley and Joni Ernst, along with Deb Fischer of Nebraska, John Thune of South Dakota, and Roy Blunt of Missouri, say the “hardship” waivers issued by the Environmental Protection Agency are being used in an “unprecedented manner.” The letter, which was issued the same day Trump was considering RFS proposed changes at the White House, urges the President to call on the EPA to cease the waivers “until the agency’s administration of the RFS can proceed in a more transparent and impartial manner.” Grassley charged last week that the EPA is “chipping away” at the RFS by allowing the hardship waivers to refiners, harming corn demand for U.S. farmers.
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NAFTA Talks Progressing
Trade officials from the U.S., Mexico and Canada are hopeful to reach a consensus on the North American Free Trade Agreement by early May. A trade negotiator from Mexico says “there’s a very high probability of reaching an agreement in principle,” within the next month, according to the Wall Street Journal. Trade leaders from each nation met in Washington, D.C. last week, seeking to step up negotiations. The timeline, outlined by Mexico, would allow the U.S. enough time to present the agreement to lawmakers following the November midterm elections. Some trade experts speculate that given the Trump administration is battling with China on trade, the administration appears to be in a hurry to wrap up the NAFTA talks. The talks continue this week. However, there still appears to be little movement on dairy trade issues between the U.S. and Canada, thus far.
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Proposed Tariff’s Realigning Soybean Trade
The proposed tariffs on U.S. soybeans as part of the trade war beginnings between China and the U.S. is shifting trade habits. Trump announced the intention last week to seek $100 billion of tariffs on additional Chinese products, which comes after China announced intention of a 25 percent soybean tariff. Data from the Department of Agriculture Friday shows other nations are buying U.S. soybeans. Trade analyst say “unknown destinations” for U.S. soybean buys from Friday likely are processors from European Union nations, including the Netherlands and Germany. Jack Scoville, analyst with the Price Futures Group, told Reuters “we’re seeing a realignment of trade,” and he attributes the changes to politics driving up Brazilian soybean prices. The U.S. Soybean Export Council speculates that Brazilian soybeans will likely go to China in the near-term, leaving U.S. soybeans available for others. Meanwhile, Jim Bower of Bower Trading pointed out that trade may shift, but global demand should not decrease overall, because the U.S. and South America are the only major soybean growing areas.
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Farm Groups Want Farm Bill to Address Farmer Suicides
A group of farm organizations led by the National Farmers Union are urging Congress to address farmer suicide rates in the next farm bill. the Coalition of 35 farm groups are asking lawmakers to make mental health treatment more accessible to farmers through the Farm and Ranch Stress Assistance Network. NFU points out that farmers and ranchers commit suicide at a rate five times that of the general population. The groups sent a letter to U.S. Senate and House agriculture committees’ leadership Monday. The letter states that economic conditions, like seen currently, along with unpredictable weather and heavy workloads “place a significant strain on a farmer or rancher’s mental and emotional well-being.” The 2008 Farm Bill established the assistance network to provide grants to extension services and nonprofit organizations that offer stress assistance programs. However, the network has never received funding from Congress.
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Organic Valley Cooperative Post Losses in 2017
The $10 million loss posted by Organic Valley during 2017 is the cooperatives biggest financial loss in 20 years. Leaders say increased milk inventories, falling prices and a slowdown in sales growth are to blame for the losses. Gross sales were up four percent to more than $1.1 billion for the year. The Wisconsin-based company is now the top national brand for organic, 100 percent grass-fed dairy and meat. Organic Valley leaders expressed optimism last week in announcing the financial figures during it's annual meeting. CEO George Siemon notes that the farming industry today is similar to the conditions seen when the cooperative started 30 years ago. Meanwhile, Organic Valley leaders say they plan to be the largest food company in the world powered only by renewable energy no later than next year.
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Brazil Packer Acquiring Controlling Stake of U.S.-based National Beef
Brazil meatpacker Marfrig (Marr-FRIG) Global Foods will purchase a controlling stake of U.S.-based National Beef Packing Company. The $969 million agreement will hand over 51 percent of National Beef Packing to Marfrig Global and would create the world's second-largest beef processor. The agreement was announced Monday. A leader in the U.S. beef industry, National Beef exports to 40 countries, including Japan, which is a market currently closed to beef exports from Brazil. Founded in 1992, National Beef reported sales of $ 7.3 billion in 2017. National Beef says its operations and management will remain unchanged in the agreement, as Tim Klein will continue as National Beef President and Chief Executive Officer upon completion of the transaction. The transaction will require regulatory approvals. It is expected to close in the second quarter of 2018.
