Two Midwestern lawmakers are calling on the Department of Agriculture to enact payment limits through farm programs. Senate Republican Chuck Grassley of Iowa along with and Representative Jeff Fortenberry of Nebraska penned a letter to Agriculture Secretary Sonny Perdue, urging him “use his existing regulatory authority” in order to ensure that individuals receiving farm payments are actively engaged in farming.

The letter states the farm safety net “was never intended to maximize government payments.” The letter calls for “an effective payment limit system,” one in which each farm is subject to the same limitation. Grassley has been a vocal advocate for farm payment limitations. A Grassley amendment to close a loophole allowing an unlimited number of so-called managers to qualify for federal subsidies was included in the last two farm bills.

In both of the last two farm bill negotiations, Grassley’s amendment was removed from the final bill. Before the last farm bill, the Government Accountability Office documented that at least $259 million was paid out through the actively engaged loophole Grassley’s amendment sought to close.

The House Appropriations Committee 2020 Agriculture spending bill rejects many of the cuts proposed by President Trump. Representative Nita Lowey, a New York Democrat who chairs the full Appropriations Committee, says the bill “rejects the President’s misguided budget and instead invests in important initiatives for the people.”

Subcommittee Chair Sanford Bishop, a Democrat from Georgia, says the bill “invests in America’s fundamental needs and rejects the Administration’s radical cuts.” The bill allocates $24 billion, four percent above the fiscal year 2019 enacted level, and more than $5.1 billion above the budget request. The bill provides nearly $4 billion for rural development, $1.8 billion in farm programs, $3.3 billion for agricultural research, and fully funds the Supplemental Nutrition Assistance Program.

For the Food and Drug Administration, the bill provides $3.2 billion in discretionary funding, which is $185 million above fiscal year 2019. The bill reported out of committee in a vote of 29 to 21 and now awaits further consideration by the full U.S. House of Representatives.

A House subcommittee hearing on the relocation proposals for two Department of Agriculture agencies highlights further contention regarding the move. USDA has proposed relocating the Economic Research Service and the National Institute of Food and Agriculture to one of the following areas, the Kansas City metro, Indiana, or to Research Triangle Park in Raleigh, North Carolina.

Subcommittee chair Stacey Plaskett, a Democrat from the U.S. Virgin Islands, opened the hearing stating the proposal will “undermine the integrity of these agencies and their ability to operate.” The National Farmers Union contends the proposal is already damaging the industry, as experienced researchers scramble to find new jobs, alleging that NIFA and ERS have both “lost decades of institutional knowledge.”

However, the top Republican on the House Agriculture Committee, Mike Conaway, states, “There is nothing that prevents USDA’s mission from extending outside of the beltway.” Conaway adds, “The elitist notion that all wisdom and knowledge stems from Washington, D.C. is offensive to me and should be offensive to anyone who resides in rural America.” Conaway called the hearing a distraction that fails to focus on the pressing issues facing agriculture today, such as farm income, weather and trade.

Environmental Protection Agency Administrator Andrew Wheeler Tuesday announced the final rule amending the Emergency Planning and Community Right-to-Know Act, which exempts farmers. The amendments clarify that reporting of air emissions from animal waste at farms is not required under the law.

Wheeler says the change “allows emergency responders and farmers to focus on protecting the public and feeding the nation, not routine animal waste emissions.” Farm groups welcomed the exemption. The rule is the final piece in the implementation of the FARM Act, which passed Congress with bipartisan support last year and eliminated the need for livestock farmers to estimate and report emissions from the natural breakdown of manure.

National Pork Producers Council President David Herring says the measure was approved because “it was unnecessary and impractical” for farmers to report. And, National Cattlemen’s Beef Association President Jennifer Houston says Congress made “a common-sense decision” to exempt livestock producers, adding NCBA is “glad to see EPA fully implement the law.”

Federal Reserve Chairman Jerome Powell is open to cutting interest rates if necessary, due to trade disputes between the U.S. and others. Powell opened a Chicago Fed conference stating “we do not know how or when these issues will be resolved,” adding “we are closely monitoring the implications,” according to Bloomberg News.

Powell says the Federal Reserve will “act as appropriate” to sustain the current economic expansion in the United States. Earlier in the week, St. Louis Fed President James Bullard called for a rate cut, citing the threat to economic growth posed by trade tensions. Investors appear to expect up to a half percentage point cut in the rate.

Meanwhile, President Trump has increased trade tensions, escalating the trade war with China after nearly reaching an agreement, and threatening new tariffs against Mexico. The already historically low-interest rates prompt some fear that the Federal Reserve Bank would have a limited response, should an economic recession occur, as rates generally can’t be cut below zero.

The Ag Economy Barometer dropped again in May. The barometer reading of 101 was 14 points lower than a month earlier and was the lowest barometer reading since October 2016. For the second month in a row, the decline in farmer sentiment was attributable to big declines in both the Index of Current Conditions, which fell from 99 in April to 84 in May, and the Index of Future Expectations, which fell from 123 in April to 108 in May.

A rating below 100 is negative, while a rating above 100 indicates positive sentiment regarding the agriculture industry. This month’s declines in the barometer and its two sub-indices effectively erased all of the large improvement in farmer sentiment that took place following the November 2016 election.

Producers’ confidence that the trade dispute with China will be resolved quickly is dissipating as farmers were also less confident that the trade dispute would ultimately be resolved in a way that favors U.S. agriculture than they were earlier in the year.

Midwest convenience store chain Casey’s General Stores and Growth Energy Monday announced the retailer will expand E15 offerings to more than 60 new sites this summer. E15, known by consumers as Unleaded 88, is a fuel with 15 percent ethanol and is approved for all cars 2001 and newer.

The two say the move follows the Environmental Protection Agency’s final rule to allow for year-round sales of E15 announced Friday in Iowa. A Casey’s spokesperson says, “we are expanding E15 at a faster pace to stay ahead of our competition,” due to the rule change. Growth Energy CEO Emily Skor welcomed the move from Casey’s, adding that conversations with other retailers show “they will soon be joined by others who’ve been waiting for this day.”

Founded in 1952 in Des Moines, Iowa, Casey’s General Stores has grown to include more than 2,100 convenience stores in 16 states in the Midwest and the South. E15 is currently sold at more than 1,800 stations in 31 states across the nation.

The weekly Crop Progress report shows little progress in planting the nation’s corn and soybean crops as unrelenting rains continue to inundate much of the corn belt. Corn plantings across the nation increased to 67 percent, compared to 58 percent a week ago and the five-year average of 96 percent. Just 39 percent of estimated soybean acres have been planted, compared to 29 percent last week, and the five-year average of 79 percent.

Missouri, Indiana, Ohio and South Dakota have yet to plant 20 percent of estimated soybean acres. The National Weather Service says another three inches of rain could fall over parts of the Western corn belt this week, adding more moisture to saturated and flooded fields.

Meanwhile, a Farm Journal poll shows nearly one-third of corn farmers will file for prevent plant payments on some of their farmland in 2019. The poll found less than half, 45 percent, do not plan to file for prevent plant payment. However, 21 percent remain undecided. The poll asked 1,017 growers regarding their prevent plant intentions.