The U.S. trade gap is widening because of a decrease in soybean exports and other products, according to the U.S. Department of Commerce. The deficit recorded its biggest increase in more than a year in October, suggesting trade would be a drag on growth in the fourth quarter of 2016. When adjusted for inflation, the deficit rose to $60.3 billion from $54.2 billion in September. However, Reuters says the deficit won’t have a significant economic impact. While the reversal in soybean shipments suggests trade is likely to subtract from GDP growth in the fourth quarter, consumer spending and a firming housing market are expected to keep supporting the economy. Third quarter soybean exports had increased on a surge in soybean shipments to China after a poor harvest in Argentina and Brazil. Meanwhile, exports of capital goods were the highest in October since December 2015.

President-elect Donald Trump has chosen Oklahoma Attorney General Scott Pruitt as his Environmental Protection Agency Administrator. Pruitt has spent much of his energy as attorney general fighting the agency he is being nominated to lead, according to the Washington Post. He is suing the EPA over climate change rules and is vastly opposed to the Waters of the U.S. rule, also vastly opposed by agriculture. American Farm Bureau Federation President Zippy Duval says the selection of Pruitt to lead the EPA is “welcome news” for farmers and ranchers. Duvall says Pruitt “should help provide a new degree of fairness for U.S. agriculture.” Pruitt is also a critic of the Renewable Fuel Standard. He argued in a 2013 Supreme Court brief that EPA ignored the risks of gasoline blended with more than 10 percent ethanol pose to fuel systems of vehicles, and the mandate’s effect on food prices.

A continuing resolution budget bill to keep the U.S. government funded through April includes language to provide the Department of Agriculture money for farm loans and summer feeding programs. The Further Continuing and Security Assistance Appropriations Act, which covers 11 of the 12 annual appropriations bills, will maintain government operations at a rate of $1.07 trillion through April 28th, 2017. The House of Representatives is expected to vote on the bill Thursday with the Senate following suit on Friday, according to the Hagstrom Report. The farm loan language for the Agricultural Credit Insurance Fund Program by the Farm Service Agency followed a request for the funding by farm groups. A coalition of farm groups sent a letter to appropriators that it was “absolutely critical” the Farm Service Agency has the resources needed to meet rising demand for farm loans. The bill also includes agriculture emergency watershed and conservation funding.

The U.S. Senate Majority Leader intends to take up the Water Resources Development Act conference report during the lame-duck session. Kentucky Republican Mitch McConnell proclaimed in a floor speech Tuesday his intention to consider the conference report. He says the bill will “invest in our nation’s waterways infrastructure, enhance commerce and support safe and reliable water sources.” The measure includes assistance for families in Flint, Michigan who have been impacted by lead poisoning within the water system, according to the Hagstrom Report. However, Michigan Democratic Senator Debbie Stabenow said she doubts the bill will have enough votes to pass. The House and Senate both overwhelmingly passed WRDA bills earlier this year. However, the conference report has hit a snag this week as California Senate-Democrat Barbara Boxer planned to block the measure. She says the bill would “roll back” the Endangered Species Act.

Ukraine plans to strengthen its checks for genetically modified organisms, with soybeans of particular concern, according to government officials in the nation. Ukraine’s State Food Safety and Consumer Protection Service made the comments this week. While it is not illegal to grow GMO plants in Ukraine, no GMOs have the official registration needed for legal cultivation, according to Pro Farmer’s First Thing Today newsletter. Government officials say that if an export shipment is found to contain GMO products, the watchdog will seize and dispose of the shipment and then investigate its origin to find the producer who broke the rules. The comments come as the country also plans to increase grain export capacity. An agriculture export company in Ukraine intends to build a new terminal to be completed in 2018 with an export capacity of four million metric tons a year.

Researchers at the Ohio State University are expressing some concern regarding an antibiotic resistant gene discovered at a U.S. pig farm. However, as the National Pork Board points out, the U.S. pork supply is safe. The resistant gene identified in the study was not found in a market hog, and there was no threat to food safety. The gene was found in one farrowing barn at a single U.S. pig farm. The Pork Checkoff says it is eager to analyze the initial findings, alongside its authors, and better understand results of the study. Ohio State University researchers acknowledge it is unknown how the bacteria was introduced to the farm and that it could have been introduced by an outside source. The checkoff says the conclusions drawn without further validation, replication and research demonstrate the issue requires additional study.

A monthly measure of the agriculture economy shows post-harvest price rallies have lifted the spirits of farmers over the past month. The Purdue University-CME Group Ag Economy Barometer released Tuesday reached an index point of 116 for November, considerably higher than the October reading of 92. The Barometer surveys 400 farmers monthly. A rating below 100 is negative, while a rating above 100 indicates positive sentiment regarding the agriculture industry. Organizers of the survey say the improved rating can be attributed to an improvement in farmers’ perspective about the future, which was motivated in part by better corn and soybean prices. However, organizers also note the jump in producer sentiment was reflected by fewer respondents with a negative outlook, rather than a notable shift toward a positive outlook on the agricultural economy.