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Perdue Promises Five Percent Budget Cut as part of Trump Plan

Agriculture Secretary Sonny Perdue will help President Donald Trump reach his goal of reducing agency budgets by five percent next year. Perdue has promised to cut his budget five percent, as last week Trump asked every Cabinet agency except the Pentagon to make a five percent cut. During the meeting, Trump told the leaders to “get rid of the fat, get rid of the waste.” A Department of Agriculture spokesman said, “USDA stands with the president and his goal of being fiscally responsible with taxpayer dollars and will absolutely meet his target,” according to the Hagstrom Report. Perdue said following the meeting that USDA would participate in the Trump plan and that he thinks USDA will “be able to meet greater than the five percent target.” The five percent announcement followed reports that the government’s budget deficit has reached a six-year high.

Daily Cash Grain Bids

October 22nd, 2018

 

St Joseph

 

Yellow Corn

3.38

White Corn

3.38

Soybeans

7.73 – 7.92

LifeLine Foods

 3.45

 

 

Atchison

Yellow Corn

 3.35 – 3.44

Soybeans

 7.71

Hard Wheat

 4.47

Soft Wheat

 4.33

 

 

Kansas City Truck Bids

 

Yellow Corn

3.44 – 3.49

White Corn

no bid

Soybeans

8.13

Hard Wheat

5.08

Soft Wheat

 4.83

Sorghum

5.53


USDA Cash Grain Prices

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

China Has Culled 200,000 Pigs Due to Swine Fever Outbreak

China, the world’s largest pork producer, has culled 200,000 pigs from its herds due to the outbreak of African Swine Fever. A Reuters report says Chinese health officials made the announcement last week. That number represents a small part of the 700 million pigs that China slaughters every year for food consumption. However, due to restrictions on transporting animals that are designed to help curb the spread of the disease have created tight pork supplies in parts of the country. Forty-one disease outbreaks have affected 27 different cities across the country. The Chinese Animal Health and Epidemiology Center say the disease, which is deadly to pigs but not to humans, is very hard to detect and prevent. China has culled pigs on each of the farms hit by outbreaks, as well as all the animals on other farms within a three-mile range of each outbreak. Most of the swine fever outbreaks have happened in northeast China. That’s an area which typically sends its hogs to slaughter in the south, closer to consumption centers.

Farm Bill on the Campaign Trail

Vice President Mike Pence made several campaign stops last week, including locations in Kansas and Iowa. Going into the trip, a spokesman confirmed that the vice president would bring up the yet-to-be-finished farm bill during his speeches. The White House message is similar to that of the House Republicans: The unemployment rate is low and a lot of jobs are open. Because of that, Republicans want Democrats to get on board with more work requirements for millions of food-stamp recipients. The House farm bill would greatly expand the pool of able-bodied workers, all of whom would be required to work an average of 20 hours per week. Politico says that’s an idea “dead on arrival” in the Senate. However, the White House also wants to ensure that Democrats don’t get what it calls a “free pass” for voting no on the farm bill. In the meantime, USDA already has a proposal in place to tighten work requirements on able-bodied adults under review at the Office of Management and Budget. Ag Secretary Sonny Perdue doesn’t want to get ahead of Congress on the issue, which means it’s uncertain as to when his agency will release the rule.

EPA Chief Says E15 Expansion Doesn’t Need Congress

Andrew Wheeler, Acting Environmental Protection Agency Administrator, says his agency can expand E15 sales to year-round without Congressional approval. Wheeler also said last week that the oil industry needs to drop its lawsuit threat against the move. Last week, President Trump said he was directing the EPA to lift the ban on summertime sales of E15, a move designed to help farmers struggling with low commodity prices. An Agriculture Dot Com article says the oil industry calls the move a violation of the nation’s biofuel law and threatened a lawsuit to block the move. “We do have the authority to move forward on E15,” Wheeler says. “I’d hope the oil industry would join us in helping make U.S. biofuel policy function better for the American public, rather than take it to court.” The oil industry opposes lifting the ban on year-round ethanol because the move would cut into its share of the fuel market. The EPA is already moving ahead on the idea. A filing with the Office of Management and Budget says the agency will release a draft on E15 by February of 2019 and will conclude deliberations by May. The American Fuel and Petrochemical Manufacturers, which represents oil refiners, says the industry will challenge the final proposal in court.

Friday’s Closing Grain Bids

October 19th, 2018

 

St Joseph

 

Yellow Corn

3.36

White Corn

no bid

Soybeans

7.72 – 8.08

LifeLine Foods

 3.42 (Truck dump hours open this Saturday 7am-4pm)

 

 

Atchison

Yellow Corn

 3.32 – 3.42

Soybeans

 7.69

Hard Wheat

 4.56

Soft Wheat

 4.39

 

 

Kansas City Truck Bids

 

Yellow Corn

3.42 – 3.47

White Corn

no bid

Soybeans

8.09 – 8.12

Hard Wheat

5.16

Soft Wheat

 4.90

Sorghum

5.48


USDA Cash Grain Prices

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

Study: E15 to Provide Limited Ethanol Market Impact

Year-round E15 sales will have a limited ethanol market impact, according to analysts. President Donald Trump recently announced a directive to move towards year-round E15 sales, and industry analysts say that would have a limited impact on the depressed U.S. ethanol market, with record supplies and prices for the fuel hovering near the lowest in a decade. There are more than 1,300 stations with pumps that can dispense E15, according to the Renewable Fuels Association. However, that is a small portion of the estimated 122,000 stations in the country, according to the National Association of Convenience Stores. RFA does say the number of stations offering E15 could double to around 2,700 by late 2019 to early 2020. Mark Lytle of Pro Petroleum told Reuters his company would consider adding ethanol tank storage if fueling stations start demanding more of the biofuel. However, due to the uncertainty regarding challenges to the measure, expansions in the short-term are unlikely.

Conaway Determined to Complete Farm Bill

House Agriculture Committee Chairman Mike Conaway remains determined to finish the farm bill this year. During an event in Omaha, Nebraska, Conaway told DTN “there’s plenty of motivation for the four of us to get this farm bill done,” referring to the four leaders of the farm bill conference committee. Conaway says farm bill negotiators are still working through issues with commodity and conservation programs, along with other titles of the bill. Conaway acknowledged that farmers are well familiar with the history of delays with the farm bill, but added stressors, such as low commodity prices and trade issues, are driving anxiety. Add to that, a rising suicide rate among farmers, Conaway says “I feel really badly about that, saying lawmakers “should have gotten that off their backs,” referring to the anxiety farmers are facing. Conaway says that issue alone helps fuel the drive to finish the farm bill. Conaway notes Peterson also has said he does not want to carry the farm bill into 2019 even if the House flips in the midterm elections.

USMCA a Framework for Future Trade Deals

A White House adviser says the U.S.-Mexico-Canada Agreement is a model for future trade agreements. USMCA will replace the North American Free Trade Agreement, if approved. Kevin Hassett, chairman of the White House Council of Economic Advisers, said this week that other potential agreements will “look very much alike, and very much like this,” according to Politico. His comments come as the Trump administration this week announced the intention to seek bilateral free trade agreements with Japan, The European Union and The United Kingdom. However, the Trump administration this week also threatened to apply tariffs on Europe’s auto industry. That is also similar to the NAFTA talks, as the U.S. pledged, and threatened, tariffs, depending on how the negotiations were moving. The U.S. and the EU first agreed to explore an agreement this summer.

Thursday’s Closing Grain Bids

October 18th, 2018

 

St Joseph

 

Yellow Corn

3.38

White Corn

3.38

Soybeans

7.78 – 8.15

LifeLine Foods

 3.46

 

 

Atchison

Yellow Corn

 3.21 – 3.44

Soybeans

 7.76

Hard Wheat

 4.54

Soft Wheat

 4.38

 

 

Kansas City Truck Bids

 

Yellow Corn

3.51

White Corn

no bid

Soybeans

8.29

Hard Wheat

5.15

Soft Wheat

 4.88

Sorghum

5.55


USDA Cash Grain Prices

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

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