Criticism from the oil industry caused the Trump Administration to restart talks over a proposal to require large refineries to blend more biofuel to make up for exemptions granted to smaller refineries. Three people with knowledge of the situation told Bloomberg that, because of the new discussions, the Environmental Protection Agency called off a planned Friday announcement on proposed biofuel quotas for 2019. It’s the latest stalemate in the clash over U.S. biofuels policy between two key Trump constituencies, which are the oil and agricultural industries. Ethanol producers and farm-state lawmakers say that recent waivers granted to small refiners have undercut the Renewable Fuels Standard. The administration’s plan to make up for the lost biofuel gallons would have put the burden on non-exempted refineries, prompting an outcry from the two top oil industry trade groups. The EPA had been preparing to unveil a rule that would set biofuel blending targets for 2019 on Friday. EPA Administrator Scott Pruitt and Ag Secretary Sonny Perdue had planned to travel to Missouri for what was expected to be the biofuel blending announcement.

The Environmental Protection Agency is expected to roll out a proposal for volume requirements under the Renewable Fuel Standard for 2019 today (Friday). Some suspect the proposal will include a reallocation of gallons displaced by hardship waivers, according to Politico. Agriculture Secretary Sonny Perdue said late last month that he spoke with EPA administrator Scott Pruitt about the hardship waivers. Perdue said the proposal would require hardship waivers to be granted before the volume requirements for the year go into effect, to allow for reallocation of the displaced gallons to other refiners. This month, administrator Pruitt appeared to reverse course from his alleged attack on the biofuels industry, visiting an ethanol plant in Kansas, and telling a group of agriculture leaders that the EPA would move forward with a waiver to allow year-round E15 sales. Still, the ethanol industry is awaiting further word of action on the issue.

A government reorganization plan by President Trump would rename the Department of Health and Human Services to the Department of Health and Public Welfare. Notably, the plan would move the Supplemental Nutrition Assistance Program from the Department of Agriculture to the new so-called welfare department. The plan would also reorganize USDA’s Food Safety and Inspection Service and the food safety functions of the Food and Drug Administration into a single agency within USDA. The administration’s proposal would move USDA’s rural housing program to the Department of Housing and Urban Development. Many of the proposals would require congressional approval and are expected to face significant opposition from both Democrats and some Republicans, according to the Washington Post. The plan introduced Thursday would also merge the education and labor departments of the federal government, move the Army Corps of Engineers Civil Works from the Department of Defense to the Department of Transportation and Department of the Interior, and make consolidations in the Department of Energy.

The House of Representatives Thursday passed its version of the farm bill 213-211. The narrow vote followed a failed attempt at passing significant immigration reform in the House. The bill again received no support from House Democrats, just as it did when the House failed to pass the legislation previously. Attention now turns to the Senate, expected to consider its version of the farm bill within the next two weeks. The Senate bill was crafted in a bipartisan way and is expected to pass. However, the House version of the bill, greatly differs, with work requirements included for recipients of the Supplemental Nutrition Assistance Program. House Agriculture Chairman Mike Conaway of Texas says he looks forward to “working with the Senate and the president” to deliver an on-time farm bill. The current farm bill expires in September.

A $3.1 million grant will fund research studying the impacts of California’s new legislation limiting the use of antimicrobial drugs given to livestock raised in the state. Meat industry publication Meatingplace reports the grant from the Wellcome Trust will fund research at George Washington University’s Milliken Institute School of Public Health. The California law took effect this year and is the first in the nation to ban antibiotics for routine disease prevention in food animal production. The grant, according to the University, will enable an investigation to find clear links between antimicrobial use in poultry and human antibiotic-resistant infections. The research will benefit from work already underway and funded by the National Institutes of Health. The Wellcome Trust is self-described as a global charitable foundation headquarter in the United Kingdom that supports scientists and researchers.

The National Pork Producers Council wants access to Thailand. If not granted, NPPC says Thailand’s preferential access to the U.S. should be revoked or reduced. Thailand is a top beneficiary of the U.S. Generalized System of Preferences program, which gives duty-free treatment to certain goods entering the United States. The program allows for removal of a country’s benefits if it fails to provide the United States “equitable and reasonable access” to its market. An NPPC spokesperson during a U.S. Trade Representative Hearing this week said; “. President Trump has called for reciprocity in our trading relationship with other countries, but there is no reciprocity at all in our trading relationship with Thailand when it comes to pork.” Thailand holds a ban on imports of U.S. pork by banning products produced with ractopamine, a feed ingredient approved. Following an NPPC petition, the U.S. Trade Representative’s office in May agreed to review Thailand’s eligibility for the U.S. GSP program.

China could ratchet up its trade war tactics against the United States as President Donald Trump has escalated the trade war between the two nations this week. Politico points out that China knows how to fight a trade war and could go beyond retaliatory tariffs next. China has been known to successfully encourage its 1.4 billion population to give up products from targeted countries, such as Big Macs, and make business harder for U.S. companies in China. While China has far fewer U.S. imports to impose tariffs on, a trade expert told Politico: “The reality is the Chinese can do quite a bit to hurt U.S. companies in the Chinese market.” Tariffs that have yet to take effect will target U.S. agricultural products. Earlier this week, business and agriculture groups penned a letter to Congress seeking lawmakers involvement to reign in Trump’s trade agenda. The group asked for congressional oversight, while detailing how Congress has the power to regulate foreign trade.