China Monday accepted the 25 percent tariff on U.S. soybeans, as a vessel waiting to dock for five weeks reached port and began unloading. The move marks the first shipment of U.S. soybeans to be accepted with a 25 percent tariff stemming from the U.S.-China trade war. China’s state grain stockpiling company accepted the shipment, even as government officials warned over the weekend China would source products, such as soybeans, elsewhere. The company will pay the tariff on the 70,000 metric ton shipment, with the tax estimated at $6 million, according to Reuters. The Chinese company claims the ship was delayed by port congestion, though the port has not seen any major backlogs for more than a month. U.S. soybean exports to China in 2017 were worth $12.7 billion, but the trade war between the two nations has sparked concerns over how much U.S. soy China will purchase. Two other ships carrying U.S. soybean have been anchored along China’s coast for a few weeks now, and many expect China to start sourcing more soybeans from Brazil.

China threatens that U.S. agriculture won’t recover from the tit-for-tat trade war between the two countries. In the South China Morning Post, a government official warned that U.S. agriculture may never regain lost market share stemming from the trade war. China alleges that “many countries have the willingness” and capacity to take over market share occupied by U.S. goods. Since the trade war began, China has imposed duties on 90 percent of agricultural goods from the United States. China charges that addition tariffs will cause “a great decrease” in exports from the U.S. with “limited impact” on China due to diversified import sources. China’s vice agriculture minister also claimed that Chinese companies had “basically stopped” importing soybeans from U.S. farmers and would deal with the impact by finding alternative ingredients for animal feeds. China is the world’s biggest importer of soybeans, which it uses to make cooking oil, biodiesel and livestock feed.

A U.S. appeals court ordered the Environmental Protection Agency to ban chlorpyrifos within 60 days. The decision by the U.S. Court of Appeals for the Ninth Circuit reverses a Trump administration reversal of an Obama administration plan to impose a ban. Chlorpyrifos is used on cotton, corn, almonds and fruit trees including oranges, bananas and apples, to kill worms and insects. The pesticide has been linked to learning disabilities in children, according to the Hagstrom Report. EPA previously, in 2000, banned household use of chlorpyrifos over concerns the pesticide can harm the brain and nervous system. The Environmental Working Group calls the decision a “huge victory for public health. Meanwhile, CropLife America expressed disappointment with the decision, and is hopeful “EPA will consider all avenues of appeal” after review of the decision.

The Department of Agriculture is forecasting a record high corn yield and soybean production for 2018. This month’s 2018/19 U.S. corn outlook is for larger supplies, greater feed and residual use, increased exports, and larger ending stocks. Corn production is forecast at 14.6 billion bushels, up 356 million from the July projection. The season’s first survey-based corn yield forecast, at a record 178.4 bushels per acre, is 4.4 bushels higher than last month’s trend-based projection. The season-average corn price was projected at a range of $3.10 to $4.10 per bushel. Soybean production is forecast at 4.5 billion bushels, up 276 million on higher yields. The first survey-based soybean yield forecast of 51.6 bushels per acre is 3.1 bushels above last month and 2.5 bushels above last year. The U.S. season-average soybean price for 2018/19 is forecast at $8.90 per bushel at the midpoint, down 35 cents from last month. Finally, the outlook for wheat this month is lower supplies, greater use, and reduced stocks. Wheat production was lowered four million bushels to 1.8 billion. The projected season-average farm price range is $4.60 to $5.60 per bushel.

A poll by Farm Futures shows support to Donald Trump from farmers is slipping. The survey found that 60 percent of farmers would vote for the president if the election were held today. That’s down from the 75 percent support level Trump received from growers in the 2016 election. Meanwhile, 24 percent said they would not vote for reelection and 17 percent were unsure. 78 percent of those who voted for the president in 2016 said they would still vote for him today. Trade policy appears to be the biggest sticking point as farmers and ranchers have applauded much of Trump’s policy moves. 86 percent of those surveyed said Trump’s move to reduce regulation is good for their farm. Even 42 percent of Clinton voters backed the president on that effort. However, just eight percent of farmers support Trump’s claim that “trade wars are good and easy to win.” Farm Futures surveyed 924 growers from July 20 to August 2. Farmers were invited by email to fill out an online questionnaire.

U.S. exports of grain in all forms are on track to set a new record in 2017/2018, with two months of sales left to report, according to data from the U.S. Department of Agriculture and analysis by the U.S. Grains Council. During the first ten months of the marketing year, September 2017 to June 2018, the United States exported 98.3 million metric tons, or 38.7 billion bushels, of grain in all forms, up two percent year-over-year from last year’s record-setting pace. The feed grains in all forms calculation helps capture how much of U.S. coarse grain production is actually used in the world market by including the corn equivalent of co-products like ethanol and distiller’s dried grains with solubles, as well as beef, pork and poultry meat exports. Mike Dwyer, Grains Council chief economist, predicts grains in all forms exports could top 116 million metric tons, or 4.57 billion bushels, by the end of the marketing year. USGC says that achievement would come “despite a tumultuous trade environment, serving as a reminder of the resiliency” of U.S. exports and of the quality and price competitiveness of U.S. coarse grains and co-products.

The Department of Agriculture Thursday announced it would move some jobs out of Washington, D.C. under a realignment plan. The agency says the moves are intended to “improve customer service, strengthen offices and programs, and save taxpayer dollars.” As per the announcement, The Economic Research Service, currently under USDA’s Research, Education, and Economics mission area, will realign with the Office of the Chief Economist under the Office of the Secretary. Additionally, most employees of ERS and the National Institute of Food and Agriculture will be relocated outside of Washington, DC. The movement of the employees is expected to be completed by the end of 2019. New locations have yet to be determined, and it is possible that the two may be co-located when their new homes are found. The movement of the Economic Research Service under the Office of Chief Economist, according to USDA “simply makes sense because the two have similar missions.” Agriculture Secretary Sonny Perdue says the changes “are more steps down the path to better service to our customers.”

The farm economy in seven Midwestern states dipped in the second quarter of 2018, alongside a sharp drop in prices of key commodities and weakened agricultural credit conditions. The Kansas City Federal Reserve Bank’s Agricultural Credit Survey released Thursday shows that despite challenges in the farm economy, farmland values have remained relatively steady and provided ongoing support to agricultural credit markets. A decline in farm income accelerated slightly in the second quarter as crop prices plummeted in June. Farm income was expected to remain subdued in the coming months, especially in states more heavily concentrated in commodities, such as soybeans, that have been targeted by retaliatory tariffs. The report says that ongoing weakness in the farm economy continued to dampen spending throughout the sector, and bankers indicated they expect borrowers to continue to reduce spending in coming months. Agricultural credit conditions also weakened at a slightly faster pace in the second quarter, and bankers continued to report a modest increase in problems with loan repayment.