An ethanol coalition has filed suit against the Environmental Protection Agency in the U.S. Court of Appeals for the Tenth Circuit. The Renewable Fuels Association, the American Coalition for Ethanol, National Corn Growers, and the National Farmers Union are suing the EPA to challenge several waivers to the Renewable Fuels Standard, given out in secret to several profitable refineries. The groups are challenging three specific decisions that were made under clandestine conditions. The EPA gave exemptions to refineries in Oklahoma, Wyoming, and Utah. The companies that own the three refineries have estimated in financial disclosures that the exemptions saved them roughly $170 million in costs. The petitioners aren’t challenging the EPA’s authority to grant the waivers. They’re challenging these three decisions as specific abuses of the EPA’s authority. Bob Dineen, CEO of the Renewable Fuels Association, says the EPA is trying to undermine the RFS under the cover of night. Brian Jennings, CEO of ACE, says the EPA left them no choice but to file suit. “They’re distorting the intent of the law by granting secret hardship waivers under the cover of night,” says Jennings. “We cannot sit by and allow the EPA to violate the RFS, which requires increasing the use of renewable fuels in the U.S.”

Despite a potential agreement on trade issues between the U.S. and China, the Trump administration will continue to pursue action against China. By mid-June, The U.S. is expected to release a list of $50 billion worth of Chinese goods that will be subject to a new 25 percent tariff, according to Reuters. The United States will also continue to pursue litigation against China at the World Trade Organization. China earlier this month agreed to purchase more U.S. agricultural products, and the U.S. said the two had reached a deal for mobile phone manufacturer ZTE to remain in business. However, with nothing finalized, it appears the U.S. will push forward with what it calls “enhanced export controls” related to technology. The previous announcements eased the scare of a trade war, but President Trump last week said any agreement between the two would need “a different structure,” prompting more trade uncertainty.

The U.S. Department of Justice Tuesday approved Bayer Ag’s acquisition of Monsanto, with conditions. The Justice Department says Bayer must sell approximately $9 billion in businesses and assets to BASF. The Department says the proposed divestiture to BASF, which it calls an experienced chemical company with a substantial crop protection business, will fully resolve all horizontal and vertical competition concerns. As a result, the Department says “American farmers and consumers will continue to benefit from competition in this industry.” The Antitrust Division Tuesday filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction, while simultaneously filing a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns. Under the terms of the proposed settlement, Bayer must divest businesses that compete with Monsanto. Those include Bayer’s cotton, canola, soybean and vegetable seed businesses, as well as Bayer’s Liberty herbicide business, a key competitor of Monsanto’s well-known Roundup herbicide.

Negotiations of the North American Free Trade Agreement continue this week in Washington, as all sides are trying to wrap up the talks quickly. Canada’s foreign minister Chrystia Freeland is in Washington this week, meeting with U.S. Trade Representative Robert Lighthizer and others, according to Bloomberg News. However, absent from the table is Mexico’s Economy Minister, who is attending other meetings in Paris. Time is running out for Mexico and Canada to continue to be exempt from U.S . steel and aluminum tariffs, which the “final exemption” according to the White House is set to expire this Friday. Also, Mexico’s election is set for July first, a hurdle in the talks negotiators have been trying to avoid. Mexico’s Economy Minister last week predicted there was a 40 percent chance all sides could reach an agreement before the election. The talks remain focused on the automotive sector, though other barriers remain for all sides to reach an agreement.

The Rural Mainstreet Index has been steadily climbing over the last four months, signaling improving conditions in farm country. However, the man behind the RMI, Ernie Goss from Creighton University, says he has his eyes on two issues; trade and interest rates. A Farm Journal report says Goss credits exports as one of the biggest reasons for improving economic conditions, in spite of trade “saber rattling.” Because of the rattling sabers, Goss says he’s very concerned about the future of trade going forward. Goss says, “What about trade with China? What about trade with Japan?” He tells Chip Flory of Agri-Talk that he’s very concerned about trade with Asia as well as the North American Free Trade Agreement. “NAFTA is very important to us,” he says, “but now we have a NAFTA deal that may not even be sealed until the next session of Congress.” The other red flag he’s keeping an eye on is interest rates. The Federal Reserve recently indicated that an interest rate hike could possibly happen during the June meeting.

Iowa Senator Chuck Grassley had some harsh words for House Ag Committee Chair Mike Conaway of Texas. The Grassley response came as Conaway said Grassley is wrong “every single time” when he complains about loopholes in the process by which USDA makes subsidy payments to farmers. Earlier this week, Grassley had said he would use the Senate farm bill to go after loopholes that non-farmers exploit to collect a lot of subsidy cash from the government. The House version of the farm bill doesn’t contain any payment limitations. House Freedom Caucus Chair Mark Meadows failed in his effort to promote an amendment that would rein in how much USDA is authorized to grant farmers coping with low commodity prices. In a three-tweet thread on Twitter, Grassley says Conaway should tell farmers why “I’m wrong for wanting to limit farm subsidies to FARMERS and not WALL ST Bankers living high on the hog. Farm subsidies meant as a safety net for farmers w/dirt under their nails.” Grassley encouraged the Freedom Caucus to vote against the House Farm Bill when it comes up again in June.

U.S. Commerce Secretary Wilbur Ross will be in China June 2-4 for another round of talks amid trade tensions between the world’s two largest economies. Reuters says The trade dispute got a little more complicated this week when President Donald Trump announced a national security investigation into imports of cars and trucks. The probe could possibly result in tarfifs against China, as well as against key U.S. allies like Germany, Canada, Japan, and Mexico. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) says Ross will be looking to negotiate a framework that could turn into binding agreements between companies. The constructive comments from both the U.S. and China after the last round of talks eased fears of a trade war between the countries. However, President Trump said this week that any deal would need a “different structure,” fueling yet more uncertainty over negotiations. Trump threatened to impose $150 billion worth of tariffs on Chinese goods, fueling threats of equal retaliation from Beijing, including tariffs on large U.S. imports like soybeans.