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Peterson Warns RIN Market Reform Could Bog Down E15 Rule

House Agriculture Committee Chairman Collin Peterson warns the Environmental Protection Agency’s efforts in connecting E15 with RIN market reform may “bog down moving forward on both.” The EPA regulates the Reid vapor pressure of gasoline sold at retail stations between June 1 and September 15.

During that time frame, gasoline blends with 15 percent ethanol are not allowed to be sold at retail stations. Now, the EPA is proposing to grant a Reid vapor pressure wavier for E15 fuels, allowing year-round sales, while also reforming the RIN market in the same proposal. Peterson calls the E15 proposal “long overdue,” but added he encourages the administration to find a “more efficient pathway process at EPA.”

Further, Peterson contends the proposal “doesn’t lessen the damage caused by the Administration’s misuse of the small refinery exemption.” The waivers allow refineries to avoid their blending requirements under the RFS. Before major changes are proposed to the RIN marketplace, Peterson says the EPA should address the overuse of these waivers.

U.S., EU Reach Tentative Beef Agreement

The United States and the European Union have reached an “agreement in principle” to allow U.S. farmers a share of the EU’s annual 45,000-ton quota for hormone-free beef imports. Politico reports the agreement has been sent to EU member nations for approval. The import quota was set in 2009 by the EU after the bloc lost a World Trade Organization dispute over its ban on hormone-treated beef.

However, other nations have largely served to meet the quota, crowding out U.S. beef producers. Negotiations to include the U.S. in the EU beef market started in September of last year, as the Trump administration is seeking a trade agreement with the European Union. Those talks have been slow going as the European Union has been reluctant to include agriculture in trade negotiations with the United States. Still, both sides are trying to move forward in the initial negotiation.

Crop Insurance Deadline Approaches

The Farm Service Agency is reminding producers that the crop sales deadline for 2019 Noninsured Crop Disaster Assistance Program (NAP) coverage is March 15. This deadline applies to forage, pasture and most fruits and vegetables. Eligible producers can file an application, pay the applicable service fees and complete acreage reports at their local county FSA office.

The deadline for Marketing Assistance Loans (MAL) and Loan Deficiency Payments (LDP) for 2018 wheat, barley, canola, crambe, flaxseed, honey, oats, rapeseed, and sesame is March 31. Since the 31st falls on a weekend, applications will be accepted through Monday, April 1, 2019. MALs provide producers interim financing after harvest to help them meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows.

For a full listing of program deadlines, NAP sales closing dates, observed holidays, and more, visit www.fsa.usda.gov/mo.

Wednesday’s Closing Grain Bids

March 13th, 2019

 

St Joseph

 

Yellow Corn

3.52

White Corn

no bid

Soybeans

8.43 – 8.53

LifeLine Foods

3.60

 

 

Atchison

Yellow Corn

 3.61 – 3.68

Soybeans

 8.41

Hard Wheat

 4.21

Soft Wheat

 4.07

 

 

Kansas City Truck Bids

Yellow Corn

3.51 – 3.66

White Corn

3.78 – 3.85

Soybeans

8.48 – 8.75

Hard Wheat

4.22 – 4.67

Soft Wheat

 4.17 – 4.27

Sorghum

5.83 – 5.92


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

NBB Urges Lawmakers to Quickly Extend the Biodiesel Tax Incentive

The National Biodiesel Board Tuesday urged the House Ways and Means Committee to quickly extend the biodiesel tax incentive. Kurt Kovarik, Vice President of Federal Affairs for the National Biodiesel Board, submitted testimony to the Temporary Policy in the Internal Revenue Code hearing.

The NBB official told lawmakers the biodiesel industry urgently needs an immediate extension of the biodiesel and renewable diesel tax incentive to end the current climate of policy uncertainty. In the testimony, Kovarik writes, “The biodiesel and renewable diesel industry cannot reach its full potential with on-again, off-again tax policy.”

Specifically, the Biodiesel Board is asking lawmakers to immediately extend the biodiesel tax incentive for 2018 and 2019, at least, “to end the current climate of uncertainty surrounding the industry.”

NASDA Disappointed with Trump Budget Proposal

The National Association of State Departments of Agriculture expressed disappointment this week in the content of President Trump’s budget proposal. NASDA CEO Barbara Glenn says the budget request would “negatively impact agriculture, particularly at a time when many in agriculture are facing a serious economic downturn.”

NASDA expects Congress to ensure the programs agriculture needs, including those within the Department of Agriculture, Food and Drug Administration and the Environmental Protection Agency are adequately funded. The budget includes cuts to crop insurance and other programs. However, one positive thread throughout the budget, according to NASDA, was the theme of cooperative federalism, particularly in the realm of food safety.

The proposal called for a $16 million increase in funding to advance implementation of the Food Safety Modernization Act with a specific focus on cooperative agreements. NASDA is a nonpartisan, nonprofit association which represents the elected and appointed commissioners, secretaries, and directors of the departments of agriculture in all fifty states and four U.S. territories.

EPA Releases Year-round E15 Rule

The Trump Administration on Tuesday released its proposal to allow for year-round E15 sales. The proposal would remove a barrier that limited the year-round sales, while also making changes to credits refiners use to prove they are using biofuel.

In a news release, Environmental Protection Agency Administrator Andrew Wheeler stated, “EPA is working to propose and finalize these changes by the summer driving season,” which starts June first and is also the date when E15 sales are restricted. The proposal would provide a Reid Vapor Pressure waiver for the summer months that has historically been applied only to E10.

Growth Energy CEO Emily Skor called the rule a “critical milestone.” However, proposed changes to the RIN market are questioned by the industry. While many are still reviewing the proposal, Skor says Growth Energy wants to make sure that changes “do not upend the marketplace, and continue to encourage investment in E15 and other higher ethanol blends.” Before finalizing the rule, EPA will now accept comments from biofuel producers, farmers, and other stakeholders.

Tuesday’s Closing Grain Bids

March 12th, 2019

 

St Joseph

 

Yellow Corn

3.52

White Corn

no bid

Soybeans

8.39 – 8.49

LifeLine Foods

3.59

 

 

Atchison

Yellow Corn

 3.60 – 3.63

Soybeans

 8.37

Hard Wheat

 4.17

Soft Wheat

 4.08

 

 

Kansas City Truck Bids

Yellow Corn

3.51 – 3.66

White Corn

3.76 – 3.83

Soybeans

8.44 – 8.70

Hard Wheat

4.28 – 4.73

Soft Wheat

 4.23 – 4.33

Sorghum

5.91 – 6.00


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

Crop Insurance Industry/NFU Respond to President’s Budget Proposal

Several organizations within the crop insurance industry were not happy with President Trump’s proposed budget cuts announcement this week. The budget included steep spending cuts at the Department of Agriculture and to the federal crop insurance programs.

However, the American Association of Crop Insurers, the Crop Insurance and Reinsurance Bureau, along with many other organizations issued a statement saying they were disappointed with the crop insurance cuts. “Those proposed cuts come just months after the importance of crop insurance was reaffirmed by the passage of the 2018 Farm Bill,” the groups said in a joint statement. “If this shortsighted proposal would be adopted, it would seriously undermine a critical safety net for farmers when they need it most.”

National Farmers Union President Roger Johnson was in agreement. “There’s a real disconnect between the president’s priorities and the economic realities facing family farmers, ranchers, and rural communities,” says Johnson. “Rather than undermine the 2018 Farm Bill by proposing cuts to important programs, the President should be working to build on that success by providing additional needed support to family farmers and ranchers.”

No Trump-Xi Meeting Scheduled Yet

There are no in-person trade talks between China and the United States on the schedule right now. A White House official says there’s still “much work left to be done” in the negotiation process. The Director of the National Economic Council says, “We’re on the phone talking with them every day, but no one has made any concrete trip plans yet.”

Politico says administration officials have been quick to caution that an agreement with China isn’t “imminent.” That’s in spite of President Trump’s desire to meet with Chinese President Xi Jinping sometime this month to hopefully get a deal between the world’s biggest economies wrapped up.

Speaking of trade news, Trump recently told reporters he’ll be sending the U.S.-Mexico-Canada Agreement to Capitol Hill for ratification “very shortly.” That would jump-start a 90-day clock during which lawmakers would have to approve or reject the president’s trade deal.

The NAFTA 2.0 deal is likely the biggest item on the congressional agenda for this year. While the submission will kickstart the administration’s final push for support, there are still many Democrats that are working on changes to the deal’s drug pricing and labor enforcement provisions.

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