China’s exports of U.S. soybeans are expected to plummet over the next marketing year, according to the latest forecast. A soybean crushing industry executive told Reuters this week that China will almost entirely replace its soybean imports from the United States with Brazilian beans and other origins in the upcoming season. The latest forecast from China predicts Imports from the United States will plunge to just 700,000 metric tons, down from 27.8 million metric tons in the most recent marketing year. The drop in imports of U.S. soy by China stems from the tit-for-tat trade war between the U.S. and China. In July, China imposed a 25 percent tariff on U.S. soybeans, sending purchases lower. The U.S. and China met last month in Washington, DC, but no formal talks are expected to take place soon, prolonging the trade war.

Producers can now apply for the trade mitigation package announced by the Department of Agriculture. Agriculture Secretary Sonny Perdue announced the launch of the program for farmers suffering from damage due to trade retaliation by foreign nations. Producers of certain commodities can now sign up for the Market Facilitation Program, while USDA will also begin to purchase identified commodities under a food purchase and distribution program. Additionally, USDA has begun accepting proposals for the Agricultural Trade Promotion Program, which will help farmers find and access new markets for their products. In total, USDA will authorize up to $12 billion in programs. The payments to farmers are based on 2018 production levels that must be certified and provided to USDA. For soybeans, that’s $1.65 a bushel, for 50 percent of production. For corn, it’s a one cent per-bushel payment, for 50 percent of production.

Two of the biggest ethanol groups in America have sued both the Environmental Protection Agency and Energy Secretary Rick Perry. The focus of the suit is dozens of hardship waivers granted to oil refineries that allowed them to not blend ethanol into the fuel supply. Growth Energy and the Renewable Fuels Association filed the suit to get access to records that detail how the decisions to grant the waivers were made, exempting some refineries from the Renewable Fuels Standard. The ethanol industry says the waivers were granted in secret, without the knowledge of stakeholders, and left billions of gallons of ethanol out of the nation’s fuel supply. The ethanol industry, farm groups, and others are suing the EPA separately for issuing the waivers, which they say is illegal under the law. The lawsuit targets Rick Perry because the EPA must consult with the Energy Department to grant a refinery waiver under the RFS. “EPA should come clean and provide the public with what it deserves,” says Growth Energy CEO Emily Skor. “That’s a full accounting of the stark increase in the number of small refinery exemptions it has granted in recent years.”

(MDA) The Missouri Dairy Association is very disappointed in USDA’s announcement of the dairy-specific financial assistance package to make up for the trade retaliation dairy farmers are experiencing. “It’s a drop in the bucket compared to the price decline in dairy farm prices.” says MDA President Ted Sheppard, a dairy producer from Cabool, Missouri. “The estimated $127 million in direct payments represents less than 10 percent of US dairy farmers’ losses caused by the retaliatory tariffs imposed by both Mexico and China. “Our financial situation is compounded with the drought in our state. Our pastures are burned up in some areas and hay cuttings were less than half of normal. Most dairy farmers I talk with are short on hay to feed this winter,” says Sheppard. “Unlike most farm commodities, we are harvesting a perishable product that needs to find a market now. “We are proud of the fact that Missouri’s dairy industry adds $2 billion to the state’s gross domestic product according to a University of Missouri study,” says Sheppard. “The study also showed an economic output effect per cow in Missouri of $14,464. “The economic pressures brought by lack of markets and feed shortages are forcing dairy farms to close now and will continue if normal trading conditions aren’t resumed sooner, rather than later,” concludes Sheppard.

Bloomberg says President Trump wants to proceed with another $200 billion in tariffs on Chinese imports as soon as the public comment period wraps up this week. Six people familiar with the matter spoke anonymously with Bloomberg for the article. Companies and people have until September 6th to submit comments on duties that will cover everything from semiconductors to selfie sticks. Some sources say the president will implement the tariffs and others say there hasn’t been a final decision yet. It’s possible that the tariffs will either come in installments or several weeks after an official announcement. Bloomberg says the latest tariff threat is causing heated debate within the administration. U.S. Trade Rep Robert Lighthizer and trade adviser Peter Navarro are pushing for quick action. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) and economic adviser Larry Kudlow are asking for more time. If implemented, the $200 billion in additional tariffs would be the biggest number imposed to date and mark a major escalation in the trade war between the worlds’ two biggest economies.

Lawmakers met this week on the farm bill, making “good progress.” However, major differences remain between the House and Senate bills that the conference committee will address next week. Congress returns next week with 16 days in-session scheduled for the Senate in September, and 11 in-session days in the House of Representatives. That means differences in the farm bill must be ironed out quickly to pass the bill before the current one expires at the end of September. Agriculture Chairman Pat Roberts told Bloomberg “some real progress was made,” including on the nutrition title. However, Debbie Stabenow, the top Democrat on the panel, indicates there is much work left to do. Stabenow says “there are big differences between the House and Senate farm bills, not just nutrition,” citing specifically the commodity and conservation provisions. The House version of the bill includes work requirements for recipients of the Supplemental Nutrition Assistance Program, and Freedom Caucus members in the House, the same lobby the voted down the farm bill earlier this year, say: “We want what we have in the House farm bill.”

(RFA) Growth Energy and The Renewable Fuels Association this week filed a lawsuit in federal district court, alleging that the Environmental Protection Agency and Department of Energy have improperly denied agency records requested by Growth Energy, RFA, and others under the Freedom of Information Act. The requested documents relate to exemptions from Renewable Fuel Standard compliance obligations granted by EPA. “The EPA should come clean and provide the public with what it deserves – a full accounting of the stark increase in the number of small refinery exemptions it has granted in recent years,” said Growth Energy CEO Emily Skor. “We deserve to know why EPA has supercharged its approvals of these exemptions without reallocating lost gallons and making sure that RFS volumes are met each year.” Growth Energy and RFA are the named plaintiffs in the lawsuit, filed in the U.S. District Court for the District of Columbia. Both Growth Energy and RFA have submitted several records requests dating back to April 2018 seeking information related to exemptions from the RFS that EPA has granted to small refineries in complete secrecy. EPA and DOE have failed to act within the timeframes required by FOIA and have improperly withheld the requested documents. By filing this lawsuit now, Growth Energy, RFA, and their allies in the renewable fuel industry aim to increase transparency and foster better oversight of EPA’s use of small refinery exemptions.

Year-round E15 sales might be nearing reality. Agriculture Secretary Sonny Perdue told reports in Boone, Iowa at the Farm Progress Show that he has spoken with the President, who wants to make an announcement next week. Perdue told the Iowa City Gazette he received a phone call from the White House while attending the outdoor farm show. Trump told Perdue “let’s get it done,” ordering him to meet with Environmental Protection Agency acting administrator Andrew Wheeler. Following the call, Perdue told reporters he expects to have an announcement “sooner rather than later.” Perdue says the action needs to clear some legal and regulatory hurdles, but added Trump gives executive orders, not suggestions, saying “so we’re going to get it done.” The question remains though, at what cost would E15 sales come under the give-and-take operating nature of the Trump administration, more so with the controversial actions around the Renewable Fuel Standard.