The National Biodiesel Board says the Environmental Protection Agency should set the 2020 Biomass-based Diesel obligation at 2.8 billion gallons and appropriately account for small refinery exemptions. Testifying to the EPA during a public hearing on the Renewable Fuel Standard Wednesday, NBB and its members asked the EPA to make the change based on the agency’s own analysis in the proposed rule showing that the volume is achievable next year. NBB also told the EPA it must reduce the uncertainty it has caused by issuing retroactive small refiner hardship exemptions. The action, according to NBB executives, is needed to “provide the certainty that the biodiesel industry needs.” EPA has estimated that the small refinery hardship exemptions it retroactively granted to refiners reduced the 2016 and 2017 RVOs by a combined 2.25 billion gallons. NBB estimates the 2016 and 2017 exemptions reduced demand for biodiesel by more than 300 million gallons.

While the United States remains engaged in a trade disruptive environment, the European Union and Japan have signed a free trade agreement. The agreement, signed Tuesday, is hoped to counteract the protectionist trade environment fueled by the U.S. and President Donald Trump, according to Reuters. The agreement creates one of the world’s largest open economic areas. Japan’s Prime Minister Shinzo Abe said: “I want Japan and the EU to lead the world by bearing the flag of free trade.” The deal removes EU tariffs of ten percent on Japanese cars and will also scrap Japanese duties of some 30 percent or more on EU cheese and 15 percent on wines, along with allowing for more EU dairy products to enter Japan. The move comes as the U.S. is in the middle of a trade war with China, and ongoing trade disputes with others, that started with steel and aluminum tariffs implemented by the Trump Administration.

The House of Representatives placed the farm bill back in the court of the Senate, voting to move towards conference. The voice vote approval paves the way for the Senate to consider similar action so the two chambers can appoint conferees to mend differences between the House and Senate versions of the farm bill. The House also passed a Democratic motion to instruct conferees to insist on 10-year permanent funding for an animal vaccine program. That motion passed the House 392 – 20. The House bill has permanent funding, but the Senate bill has only an authorization for appropriations. The motion to proceed also makes it possible for the House to appoint conferees. The Senate must also vote to proceed to conference and appoint conferees. However, when the conference committee will convene remains uncertain, before or after the August recess. The current farm bill expires September 30th.

Following the vote, House Democratic Leader Nancy Pelosi named democrats to serve on the conference committee, including 10 Agriculture Committee members. Listed by committee, they include:

Agriculture: Collin Peterson (D-Minn.), David Scott (D-Ga.), Jim Costa (D-Calif.), Tim Walz (D-Minn.), Marcia Fudge (D-Ohio), Jim McGovern (D-Mass.), Filemon Vela (D-Texas), Michelle Lujan Grisham (D-N.M.), Ann Kuster (D-N.H.), Tom O’Halleran (D-Ariz.)
Education and Workforce: Alma Adams (D-N.C.)
Energy and Commerce: Paul Tonko (D-N.Y.)
Financial Services: Maxine Waters (D-Calif.)
Foreign Affairs: Eliot Engel (D-N.Y.)
Natural Resources: Raul Grijalva (D-Ariz.)
Oversight and Government Reform: Stacey Plaskett (D-V.I.)
Science, Space and Technology: Eddie Bernice Johnson (D-Texas)
Transportation and Infrastructure: Cheri Bustos (D-Ill.)

Republican Conferees include:

Agriculture: Chairman Mike Conaway, R-Texax, Glenn ‘GT’ Thompson, R-Pa., Bob Goodlatte, R-Va., Frank Lucas, R-Okla., Mike Rogers, R-Ala., Austin Scott, R-Ga., Rick Crawford, R-Ark., Vicky Hartzler, R-Mo., Rodney Davis, R-Ill., Ted Yoho, R-Fla., David Rouzer, R-N.C., Roger Marshall, R-Kan., Jodey Arrington, R-Texas
Education and the Workforce: Chairwoman Virginia Foxx, R-N.C., Rick Allen, R-Ga.
Energy and Commerce: John Shimkus, R-Ill., Kevin Cramer, R-N.D.
Financial Services: Chairman Jeb Hensarling, R-Texas, Sean Duffy, R-Wis.
Foreign Affairs: Chairman Ed Royce, R-Calif., Steve Chabot, R-Ohio
Natural Resources: Chairman Rob Bishop, R-Utah, Bruce Westerman, R-Ark.
Oversight and Government Reform: Mark Walker, R-N.C., James Comer, R-Ky.
Science, Space, and Technology: Ralph Abraham, R-La., Neal Dunn, R-Fla.
Transportation and Infrastructure: Jeff Denham, R-Calif., Bob Gibbs, R-Ohio

Mexico and Canada want to wrap up the renegotiation of the North American Free Trade Agreement this year, according to the Hagstrom Report. While in Washington, D.C. this week, The Mexican ambassador to the United States says the incoming Mexican president wants NAFTA to “be completed before he takes office on December 1.” An official from Canada said the nation would welcome completion of the agreement this year. The talks, however, appear to stall and avoid highly contentious issues, while missing tentative deadlines repeatedly. For agriculture, Canada maintains that any proposed changes to Canada’s dairy supply management system are “unacceptable.” Canada points out it is the second largest export market for U.S. dairy products after Mexico, and that the products enter Canada duty-free.

The U.S. struck back at retaliating nations this week, filing a complaint with the World Trade Organization. The U.S. complaint says the steel and aluminum tariffs imposed by the Trump administration were justified, but claim retaliation in response to the tariffs from trading partners was not justified. The complaint includes China, the European Union, Turkey, Canada and Mexico. In a statement from the U.S. Trade Representative’s office, USTR Robert Lighthizer said of the retaliation: “These tariffs appear to breach each WTO Member’s commitments under the WTO Agreement.” Specifically, Lighthizer says the retaliations are designed to punish American workers, farmers and companies. In the statement, Lighthizer says the U.S. will “take all necessary actions to protect our interests,” while urging the five WTO members named in the complaint to “work constructively” with the United States to resolve the matter.

Agriculture Secretary Sonny Perdue Tuesday called farmers “some of the best patriots in America,” while speaking at an event, but said farmers “can’t pay the bills with patriotism.” Perdue made the comments at Axios 360, an event held by news website Axios, in Washington, D.C. Tuesday morning. Perdue says farmers and ranchers are “bearing the brunt” of the ongoing trade disputes between the United States and others, like China. Many of the retaliatory tariffs from U.S. trading partners due to U.S. steel and aluminum tariffs are on U.S. agricultural products. Also attending the event were former U.S. Trade Representative Mike Kirk and House Agriculture Committee chairman Mike Conaway. Conaway told attendees that: “I can’t un-roil the waters on trade, but I can get this farm bill done.” A vote to send the farm bill to conference is expected sometime this week in the House of Representatives, or at the latest, early next week.

Union Pacific CEO Lance Fritz says trade disruptions are threatening to undermine an otherwise robust economy. The rail company, headquartered in Omaha, Nebraska, told the Omaha World-Herald that the current trade disruption: “Affects the 7,300 communities Union Pacific serves.” Specifically, the North American Free Trade Agreement renegotiation effort is harming U.S. railways. About 40 percent of Union Pacific traffic originates or ends outside the United States. And the railroad handles 70 percent of the business going in and out of Mexico. Union Pacific is also feeling the impact of the steel and aluminum tariffs on China as it plays a role in importing products from China. In a speech to the National Press Club in Washington, D.C. last week, Fritz said he applauds the administration for attempting to level the playing field with China, but says the best way to do so is through “a united front with allies,” and modernizing trade agreements. On the overall economy, Fritz says recent trade policies are “creating uncertainty that’s going to cause capital investment to slow down.”