The U.S. biodiesel industry continued to face strong headwinds in 2019 due to the demand destruction wreaked by small refinery exemptions (SREs). For example, in a previous farmdoc daily article (March 14, 2019) it was estimated that SREs reduced biomass-based diesel (biodiesel and renewable diesel) demand by over 700 million gallons in 2017, nearly a billion gallons […]
At the direction of President Donald J. Trump, U.S. Secretary of Agriculture Sonny Perdue today announced the third and final tranche of 2019 Market Facilitation Program (MFP) payments aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations. The payments will begin to show up in farmers’ bank accounts by […]
U.S., China Ag Trade- Recent Background Reuters writers Hallie Gu, Muyu Xu and Tony Munroe reported last week that, “China’s imports of U.S. soybeans surged in December from a year earlier, data showed on Friday, as China ramped up purchases during a thaw in the two country’s trade war. “China brought in 3.09 million tonnes of […]
New York Times writers Ana Swanson and Emily Cochrane reported on Wednesday that, “President Trump signed the revised North American Free Trade Agreement into law on Wednesday, fulfilling a key campaign promise and bringing more than two years of tumultuous negotiations over the continent’s trade rules to a close. “The trade deal, now called the United […]
In separate developments this month, a federal appellate court and the U.S. Government Accountability Office, have weighed in with actions that could impact how biofuel waivers that exempt oil refineries from Renewable Fuel Standard requirements are granted. Today’s update looks briefly at each of these issues. U.S. Court of Appeals Decision Reuters writer Stephanie Kelly reported last week that, […]
Before the ink dried on the newly signed Phase 1 trade agreement, dozens of articles and Twitter threads emerged with clever insights into the nuances and subtleties of the agreement. Most debates focused on the base level China agree to buy up from, and the relevant commodities and products. Stepping back from the details, this […]
Soybean futures prices fell again last week on reports of a coronavirus outbreak rattling the Chinese economy and the prospects of a huge Brazilian crop. A double hit associated with increased production from our main competitor and a potential drop in Chinese demand appears set to drive prices lower in the near term. If present […]
Background A recent Congressional Research Service report explained that, “U.S. agricultural exports have been a major contributor to farm income, especially since 2005. As a result, the financial success of the U.S. agricultural sector is strongly linked to international demand for U.S. products.” A recently signed trade-enhancement agreement that will lower agricultural tariffs in Japan, Senate passage of the USMCA agreement, along with […]
After the release of the January WASDE report, the Gardner ARC/PLC Payment Calculator was updated to reflect revised price information for the 2019 and 2020 years. Herein updated estimates of Agricultural Risk Coverage at the County Level (ARC-CO) and Price Loss Coverage (PLC) are presented for corn, soybeans, and wheat. Overall, PLC payments in 2019 are not […]
Managing stored grain throughout the winter is an important part of your grain marketing plan for farm profitability. This winter we are already receiving reports of stored grain going out of condition, which can lower the value and be a hazard to those working around the grain facility. At a minimum, stored grain that has gone […]