The U.S. Food and Drug Administration has announced guidelines regarding grain that has come into contact with flood waters. Affected grain is considered adulterated and must be destroyed or receive diversion approval by FDA due to the potential for contaminants from flood waters.

While there are few, if any, crops growing right now, previously harvested crops or siloed feed materials may be contaminated and no longer suitable for feeding.

For more information, please contact the FDA’s Kansas City District Office at (913) 495-5110.
Guidance on flooded grain disposal can be found here: https://www.extension.iastate.edu/…/management_of_flooded_g…
https://dnr.mo.gov/pubs/pub189.htm

March flooding throughout the Midwest caused shortages of ethanol as production was reduced, with threats of more flooding on the way. The decreased ethanol production is also fueling the increase seen in gas prices, according to Reuters, as ethanol prices on the coasts spiked due to shortages. Midwest producers have been unable to take advantage of the price increase because of washed-out rail lines.

In Southern California, including Los Angeles, the ethanol shortages are one of the factors that are pushing gas prices towards $4 a gallon, a level not seen since 2014. The multi-billion dollar damages in March impacted farms, homes and infrastructure, as well as cutting ethanol production by 13 percent.

The biggest problem facing the industry, getting ethanol to market, will continue as repairs are made to railways and U.S. ethanol inventories rise to near record levels. Additionally, storms across the Midwest and Great Plains threaten further flooding, further impacting plants and the transportation systems they rely on.

Canada is refreshing a list of tariffs on the U.S. as section 232 steel and aluminum tariffs remain against Canada. Politico reports the effort is part of Canada pressuring President Donald Trump to remove the tariffs he imposed last year.

Removing the tariffs, though separate, were thought to be part of reaching an agreement on the U.S.-Mexico-Canada Agreement that will replace the North American Free Trade Agreement. But Trump has yet to remove the tariffs and Agriculture Secretary Sonny Perdue had previously said would negate any benefits on the updated trade agreement.

Canada has also stated it would not implement the agreement if the tariffs are not removed. David MacNaughton, Canada’s ambassador to the United States, said this week the refreshed list of tariffs is not yet complete, and he expects “a significant number” of agricultural products to be on the new list. While it’s too early to name specific products, he noted some in Canada have called for including apples, pork and ethanol.

Pressure on farm finances appears likely to continue, according to the 2019 U.S. Baseline Outlook from the Food and Agriculture Policy Research Institute at the University of Missouri. The report finds projected net farm income will increase in 2019 but remains below the 2014-17 average. Longer-term projections suggest little change in real net farm income over the next decade, resulting in continued increases in the farm sector’s debt-to-asset ratio.

Projected prices for U.S. soybeans and other products affected by current trade disputes remain below levels that would prevail if foreign tariffs were removed. Marketing-year-average soybean prices are projected to stay below $9.00 per bushel for a second straight year in 2019/2020, and corn prices are estimated to increase from averaging $3.53 in the current marketing year, up to $3.81.

Further recovery in wheat prices could be limited by continued large global supplies, while cotton prices could fall in response to increased U.S. production. The estimates were prepared before the March 29 USDA planting intentions report was released, which suggests slightly more acres of corn and fewer acres of wheat and cotton than included in the outlook.

Significant work remains in trade talks with China, according to a statement from U.S. Trade Representative Robert Lighthizer’s office. President Trump has indicated a deal could be reached in the next four weeks, but the two sides offered little details regarding last week’s meetings, according to Reuters.

Lighthizer says negotiation team members “will be in continuous contact to resolve outstanding issues.” The most recent negotiations included intellectual property, or IP, forced technology transfer, non-tariff barriers, agriculture, services, purchases and enforcement.

Agriculture Secretary Sonny Perdue has previously said the negotiations could conclude with a doubling or tripling of U.S. ag exports to China. U.S. agriculture is impatiently waiting for the results of the talks which stem from the trade war enacted last year between the U.S. and China. The talks are now expected to conclude sometime within the next few months, well beyond the original deadline set by President Trump of March first. However, Trump extended the deadline because the talks were making progress.

Farmers appears set for a familiar weather event this week as forecasters say another bomb cyclone, or similar event, will hit parts of the Great Plains and Midwest. Numerous weather forecasters now say models are showing one to two feet of snow, if not more, in the northern reaches of the Missouri River basin, the same area that flooded in March from a bomb cyclone event.

The storm this week overlaps areas hit last month, but the bulk of the predicted heavy snowfall is expected further north, into South Dakota and Minnesota. The so-called cyclone, which presents a unique shape clearly defined on weather maps, is expected to form Wednesday afternoon. The storm creates a swirling air pattern and includes conditions that allow for significant precipitation.

However, forecasters say round two should not be as disastrous as the first bomb cyclone in March, as spring seasonal conditions are limiting the potential of the storm. Still, the storm signals more flooding along the Missouri and Mississippi Rivers. The National Weather Service last month predicted flooding to last into July.

The National Biodiesel Board is grateful that several representatives in the House introduced legislation that would provide a two-year extension of the biodiesel and renewable diesel tax incentive. The NBB says the Biodiesel Tax Credit Extension Act will provide certainty for 2018 and 2019 to biodiesel producers and their employees.

“NBB and its members are grateful to the representatives for their leadership to extend the expired biodiesel tax incentive,” says Kurt Kovarik, Vice President of Federal Affairs. “We continue to appreciate the strong bipartisan support in Congress for biodiesel and renewable diesel industry workers.” He says biodiesel companies and their workers are facing a lot of uncertainty in their future because the biodiesel tax incentive has been expired for 15 months.

“The economic pressure is building and it’s threatening the future of the industry,” he says. “It’s putting good-paying, blue-collar jobs and production of a low-carbon, domestic fuel at stake. It’s also adding economic pressure to farmers who’ve already been hit hard from both sides by unfavorable weather and trade disputes.” Kovarik adds that this bill will provide the agricultural economy some certainty and relief for 2018 and 2019.

Mexican President Obrador pledges to help make sure the nation’s Senate will overhaul labor laws to enforce workplace standards. Politico says that’s a major sticking point for American lawmakers as they look at possibly ratifying President Trump’s signature trade achievement. During a press conference, Obrador said, “We don’t want there to be any excuse to reopen the negotiations for the deal.”

The good news is that Mexican officials are optimistic the new laws will be passed soon. However, they’re less sure of the legal time frame needed to implement the changes. Congressional Democrats aren’t sure the current rules in the USMCA agreement are secure enough to enforce labor standards. Many have called for reopening the deal to strengthen that language. That’s an idea that Mexico, Canada, and the Trump Administration all oppose.

Vice President Mike Pence says the White House wants Congress to get the deal ratified by this spring. House Speaker Nancy Pelosi says she won’t bring the pact up for a vote until she sees evidence of the revised Mexican labor laws in effect. Last Thursday, the Speaker said she won’t try to use the trade pact as a bargaining chip to achieve Democratic policy priorities.