Bayer and Monsanto appear to be getting closer to a deal as negotiations seem to be in the final stretch. An agreement between the two companies would allow them to merge into the world’s biggest seed and pesticide maker. Bloomberg reports that people familiar with the matter say a deal could be reached as early as next week. The Bayer supervisory board is scheduled to meet this week to discuss the deal and Monsanto’s board will meet next week. Bayer announced “advanced negotiations” this week and a higher offer to Monsanto of $127.50 per share, roughly $65 billion, which is 18 percent above Monsanto’s closing price last week. People familiar with the deal who asked not to be identified say that Monsanto wants a price closer to $130 per share. They’re also said to be discussing the fee that Bayer would pay Monsanto if the deal doesn’t get approval from regulators.

Agricultural leaders from Kansas, Missouri, Nebraska, and Iowa met recently in St. Joseph, Missouri, with each state reporting on findings from surveys of farmers and experts in the financial industry. A list of recommendations to improve the ag economy would then be forwarded to policy makers. Some of the common themes included the importance of international trade, supporting younger producers’ desire to return to the farm, and helping producers recognize where their break-even points are. News Press Now dot Com said lower commodity prices are pressuring both producers and their lenders. One Extension expert said lenders are watching their clients closely and operating loans are becoming harder to acquire. For example, cattle producers in Missouri and Kansas are having a hard time finding operating capital. A general consensus of recommendations to be passed on to the U.S. Department of Agriculture included the need for states to continue to work together, saying it’s important to do so because the current economic situation is projected by some to last all the way to 2020. There is also a need for states to work together to find common farm bill policies. Missouri Department of Agriculture Director Richard Fordyce, who hosted the event, said the farm economy will face another two years of down prices, adding “It’s not as easy to tighten belts as it was 20 years ago.”

The Environment Protection Agency violated the personal privacy rights of thousands of farmers and ranchers. That unanimous ruling came from the United States Eighth Circuit Court of Appeals on Monday. The ruling concerns the EPA’s decision in 2013 to release to three environmental groups a large number of spreadsheets containing personal information of farmers and ranchers that raise poultry and livestock in 29 states. The American Farm Bureau Federation and the National Pork Producers Council vs. the EPA case also involved producer information in seven states that hadn’t been released yet. The EPA said it was required to release the information under the Freedom of Information Act. The information released included the names of farmers, ranchers, sometimes other family members, home addresses, GPS coordinates, telephone numbers, and email addresses. “This was an unwarranted invasion of personal privacy by a federal agency in violation of the law,” said AFBF General Counsel Ellen Steen. “EPA has to recall all of the information from FOIA requestors, but the groups have had the information for three years and most feel the damage has already been done.”

Corn: This month’s 2016/17 U.S. corn outlook is for lower production, reduced feed and residual use, lower stocks, and higher prices. Corn production is forecast at 15.093 billion bushels, down 61 million from last month. Corn supplies for 2016/17 are lowered from last month but are still forecast at a record 16.859 billion bushels, as a smaller crop more than offsets a small increase in beginning stocks due to a reduction in 2015/16 exports. Feed and residual use for is lowered 25 million bushels with a smaller crop and higher expected prices. Exports are unchanged from last month, reflecting the competitiveness of U.S. corn on the world market. Corn ending stocks are down from last month but, if realized, would still be the highest since 1987/88.

Soybeans: Soybean production is projected at a record 4,201 million bushels, up 141 million due to a higher yield forecast. Soybean supplies are raised with higher production more than offsetting lower beginning stocks. Despite higher crush and exports, 2016/17 soybean ending stocks are projected at 365 million bushels, up 35 million from last month due to higher supplies. Changes for 2015/16 include higher exports and lower ending stocks. Exports are increased 60 million to a record 1,940 million bushels based on official trade through July and indications from record high August export inspections. Ending stocks are projected at 195 million bushels, down 60 million from last month. The U.S. season-average soybean price is forecast at $8.30 to $9.80 per bushel, down 5 cents on both ends of the range.

Wheat: The U.S. 2016/17 wheat supply and demand estimates are unchanged from last month. The marketing year average price received by producers is lowered $0.10 per bushel at the midpoint to a range of $3.30 to $3.90. The reduction is due to lower than expected prices to date. Global wheat supplies for 2016/17 are raised 0.4 million tons on a 1.4-million-ton production increase that is partially offset by decreased beginning stocks. Global exports are raised 2.1 million tons led by a 1.0-million-ton increase for Australia and a 0.5-million-ton increase for Kazakhstan, both on larger crops. Export gains are partially offset by a 1.0-million-ton decrease in EU exports on the continued decline in supplies. Total global use is up 4.2 million tons with increases in both food and feed use. With total use rising faster than supplies, world ending stocks are lowered 3.8 million tons but remain record large.

Rice: U.S. 2016/17 all rice supplies are reduced 0.6 million hundredweight due to a lower production forecast that is mostly offset by increased beginning stocks. Imports are also lowered 0.5 million hundredweight. All rice production is lowered 7.2 million tons on both lower area and yield. The production estimate reflects excessive rain and flooding that has in several areas of the Southern production region. The long-grain crop is lowered 4.8 million hundredweight to 177.9 million, but is 44.9 million hundredweight above the previous year and the largest crop since the 2010/11 record. Medium- and short-grain production is lowered 2.3 million hundredweight to 59.3 million. Total rice exports are unchanged, but domestic and residual use is lowered 5.0 million hundredweight to 133.0. Ending stocks are raised 4.4 million hundredweight.

Sugar: Sugar production for the fiscal year 2016/17 is increased 63,904 short tons, raw value to 9.272 million resulting from new sugar crop forecasts made by NASS in the September Crop Production report. Partially offsetting is a beet sugar production decline of 31,632 STRV based on a lower sugar per acre implied by NASS’s sugarbeet yield forecast decrease of 0.1 tons/acre to 31.3 and an area harvested reduction of 3,000 acres. Imports for 2016/17 are reduced by 366,000 to 2.652 million. All of the reduction is attributable to a decrease in imports from Mexico for 2016/17. Total use for 2016/17 is unchanged from last month. Ending stocks for 2016/17 are projected at 1.656 million, implying an ending stocks-to-use ratio of 13.5 percent.

Livestock, Poultry, and Dairy: The forecast for total red meat and poultry production for 2016 is reduced from last month as beef, pork, and broiler production forecasts are lowered. Turkey production is raised. Beef production is forecast lower on lower expected third quarter steer and heifer slaughter. Pork production for 2016 is lowered on expectations of slightly lower carcass weights for the third quarter. The milk production forecast for 2016 is raised from last month as the cow inventory appears to have steadied in the face of expected improvements in returns. The production forecast for 2017 is raised to reflect slightly more rapid growth in milk per cow.

The Environmental Protection Agency set a goal of issuing a decision on Monsanto’s new dicamba products by the end of this year. The products are designed to be used with the Roundup Ready Xtend crops. However, the approval process has been bogged down by reports of farmers using an older version of the herbicide and have done some damage in nearby crops that aren’t resistant to the weed killer. In April, the EPA proposed allowing the use of the herbicide designed to be used with the Monsanto Xtend crops, but it hasn’t actually approved it yet. Some farmers filled in the gaps with older versions of the herbicide. The acting Director of the EPA’s pesticide registration division, Michael Goodis, said those uses are illegal and could be subject to criminal prosecution. Goodis also said the chemical’s effects on nearby crops raise concerns about Monsanto’s new herbicide being contained in fields where it’s applied.

Farmers and ranchers cut their production costs by roughly nine percent last year. A report in Successful Farming said the cuts were caused by an end to the agricultural boom and a resulting collapse in farm income. Farmers paid out a total of $362.8 billion last year, the lowest outlay since 2012 according to estimates from the USDA Farm Expenditures Report. The peak outlay for expenses was 2014, when farmers spent nearly $400 billion, just as commodity prices began a sharp decline. Average spending per farm last year was $171,000, down just over $15,000 from the previous year. Crop farmers were aggressive in cost cutting, lowering expenditures by $22 billion dollars, or 11 percent from the previous year. The biggest cuts were in equipment, fuel, and farm repairs and supplies. Rent was the biggest single expenditure and it dropped five percent from the previous year to $25.4 billion. University of Illinois Grain Economist Gary Schnitkey says farmers should expect marginally lower revenues from corn and soybean this year, with another drop in revenues in 2017. He said farmers will need to continue to cut costs, especially if they have a low amount of working capital.

The European Union’s antitrust regulator said the deadline for a review into the proposed Dow DuPont merger has been suspended because the companies have yet to turn in the required information. A European Commission spokesman said, “To comply with merger deadlines, the companies must submit the required information to investigators in a timely fashion.” A Dow Jones report said the EU opened an in-depth investigation into the proposed deal on concerns that the merger would cut down on competition in crop protection, seeds, and certain petrochemicals. The proposed merger was first disclosed in December of 2015, and would unite the two companies before the split into three separate units. Dow and DuPont quietly made concessions to the EU in July in order to address concerns about antitrust issues. The commission will restart its clock on the merger review once the companies submit the required paperwork. The most recent deadline for the review had been set for early 2017.

The Environmental Working Group and the Union of Concerned Scientists gave their reactions to the Heritage Foundation paper on the upcoming 2018 Farm Bill. The Heritage report called for an end to commodity support programs and federal crop insurance, saying that farm programs should only help in times of deep crop losses. The Hagstrom Report says Environmental Working Group Vice President Scott Haber said the report confirms how far the “so-called safety net” has strayed from its intended purpose. “It’s to help farmers weather the ups and downs in agriculture, and not to guarantee a level of income that’s well above incomes in average American households.” He said the EWG doesn’t support all the recommendation in the Heritage Foundation report, but they are pleased that the report will force policymakers to examine these programs more closely. Mike Lavender is the Washington representative for the Food and Environment Program within in the Union of Concerned Scientists. He said, “The Heritage report highlights many of the ill effects of the current farm program.” Lavender said there must be continued support for farmers, especially when they need it most, but added, “That support shouldn’t come at the cost of incentivizing certain crops and practices over others or supporting the largest and wealthiest farm businesses over others.”