Wednesday March 25 Ag News

Senate Passes Additional Coronavirus Relief Package with Fischer’s Support

U.S. Senator Deb Fischer (R-Neb.) released the following statement today after the U.S. Senate passed an additional relief package to combat the outbreak of novel coronavirus. Senator Fischer has worked with her colleagues in a bipartisan manner to pass this relief for Nebraska families, businesses, and communities affected by COVID-19.

“We are in a crisis. We must provide people with relief and get our economy on the road to recovery, and that is exactly what the bipartisan legislation we passed today does. It includes relief for individuals, families, businesses, and communities. For small businesses, it ensures that they can keep their employees working and don’t have to shut their doors for good. For health care providers and first responders, it includes substantial hospital funding as well as my bipartisan bill with Rep. Bacon to help produce a sufficient supply of respirator masks. For communities, it creates a new coronavirus relief fund with $150 billion for state and local governments to help them address this pandemic.  And for agriculture, which provides one in four Nebraska jobs, it increases emergency response funding for producers impacted by COVID-19. We need to battle this virus, provide relief to our people through this stressful time, and get our economy stabilized,” said Senator Fischer.

More information on the relief package:

Agriculture:
-          Provides $9.5 billion in emergency COVID-19 response funding for livestock producers, including cow/calf producers and feeders who are facing depressed prices and a volatile futures market
-          Safeguards supply chain to fulfill increased consumer demand during the crisis
o   This package provides funding for critical elements of oversight in that chain—including Food Safety and Inspection Service (FSIS) money for continued slaughter and packaging inspections and Agricultural Marketing Services (AMS) money for continued commodity grading and inspection

Individuals:
-          Provides recovery checks of $1,200 for all individuals with adjusted gross income up to $75,000 or $112,500 in the case of those with a head of household filing status. Check amounts begin phasing out for incomes greater than $75,000 and completely phase out for individuals earning more than $99,000.
o   $2,400 for married couples with adjusted gross income up to $150,000
o   An increase of $500 for every child
-          Waives the 10 percent early withdrawal penalty for individuals withdrawing from qualified retirement accounts for virus-related challenges
-          Extends the amount of time a person can receive unemployment insurance and increases the amount of unemployment insurance available per person for up to 4 months

Small- and Medium-Sized Businesses:
-          Paycheck Protection Program: Makes funds available for Small Business Administration (SBA) to give forgivable loans to businesses, certain nonprofits, and veterans’ organizations with 500 or fewer employees who keep their employees on payroll
o   Loans of up to $10 million are eligible for full forgiveness if used to pay debt obligations and keep employees on payroll
o   Businesses can use these funds to cover costs related to payroll, interest payments on a mortgage, rent, utilities, health care benefits, and interest on any other debt obligations
-          Allows borrowers that have received or will receive an Economic Injury Disaster Loan (EIDL) between January 31, 2020 and December 31, 2020 to be eligible for certain assistance under this program.

States:
-          Provides $150 billion for states to use for COVID-19 expenses, allocated by population proportions, with a minimum of $1.25 billion for states with relatively small populations

PREP Act:
-          Includes Senator Fischer’s legislation with Senator Sinema (D-Ariz.) to amend the PREP Act and ensure a sufficient supply of NIOSH-certified respirators
o   Current law, via the PREP Act, allows the Department of Health and Human Services (HHS) to issue a declaration granting limited liability protection to manufacturers and distributors of certain countermeasures against diseases—which includes respirators—when the government calls up that equipment to be used in the event of an outbreak or epidemic.
o   However, respirators which are overseen by NIOSH—an office within the Centers for Disease Control and Prevention (CDC)—are not currently eligible for that protection.
o   This provision ensures that these respirators are eligible for the same federal liability protections as other medical products, vaccines, and drugs

Healthcare:
-          Expands an existing Medicare accelerated payment program to ensure Critical Access Hospitals have a reliable and stable cash flow during COVID-19 response
-          Increases reimbursement for all Medicare providers, including an add-on 20% payment for hospitals for COVID-19 care specifically
-          $100 billion to ensure healthcare providers continue to receive the support they need for COVID-19 related expenses and lost revenue.
-          $275 million to expand services and capacity for rural hospitals, telehealth, poison control centers, and the Ryan White HIV/AIDS program
-          $1.32 billion for Community Health Centers and extend those set to expire on May 22, until Nov 30, 2020.
-          Makes over $330 million available to promote the use of telehealth technologies and the internet connectivity needed to boost telehealth networks.
o   Now more than ever, telehealth capabilities are critical for increasing access to screening and monitoring for patients, while minimizing COVID-19 exposure to others.

Students and Educational Institutions:
-          Defers student loan payments, principal, and interest for 6 months without penalty to the student



Fortenberry Statement on $2 Trillion Coronavirus Relief Package

Congressman Jeff Fortenberry (NE-1) offered the following statement today on the $2 trillion coronavirus relief package coming up for a vote in the Senate.

“Extraordinary times call for extraordinary measures.  People are suffering, and America is uncertain.  The bill acts to protect America’s health care system, protect individuals and families, and protect small business.  We are fighting to turn the corner on the disease and the loss of economic well-being at the same time.  With social distancing and aggressive health measures such as a surge in testing, we will keep you safe while helping small business stay open,” Fortenberry said.

“This bill gives $1200 per person, $2400 per couple, $500 per child, within certain limits.  Small businesses can quickly access loan funds through their local financial institutions, with a direct grant for eight weeks of wages and rent to keep people on the payroll.  Other provisions increase unemployment insurance, direct help to hospitals and deliver support to state and local governments,” Fortenberry added



NCBA Applauds Senate's Unanimous Passage of Relief Legislation That Will Benefit American Cattle Producers

NCBA Vice President of Government Affairs, Ethan Lane, tonight released the following statement in support of U.S. Senate passage of Coronavirus relief legislation that provides crucial federal disaster assistance for American cattle producers:

"Tonight’s passage of the CARES Act by the Senate represents the culmination of more than a week of unprecedented bipartisan work on behalf of the American people. This bill marks an important step toward ensuring America’s cattlemen and women will be able to continue the critical work of feeding the nation during this time of crisis. The beef community greatly appreciates the leadership of Senate Majority Leader Mitch McConnell, as well as Sen. John Thune R-SD, Sen. John Hoeven R-ND, Sen. Jerry Moran. R-KS, Sen. John Cornyn R-TX,  Sen. Roy Blunt R-MO, Sen John Boozman R-AR, and Sen. Deb Fischer, R-NE, for their efforts to provide financial tools and security for cattle producers who have suffered economic hardship as a result of the global Coronavirus pandemic.

"The entire agriculture community requires the certainty this bill provides to ensure their livelihoods and the well-being of rural communities across the nation. We applaud the Senate’s action tonight and urge the House of Representatives to quickly pass the CARES Act and send it to the President’s desk."



NPPC Statement on Economic Stimulus Package

Today, Congress released language on its third stimulus package to aid those sectors of the economy impacted by COVID-19. As part of the funding, $14 billion was provided to the U.S. Department of Agriculture's Commodity Credit Corporation to help agriculture, as well as a separate appropriation of $9.5 billion for livestock and specialty crops. A Senate vote is scheduled for later today, with the House expected to follow suit shortly thereafter. National Pork Producers Council President Howard "A.V." Roth, a pork producer from Wauzeka, Wisconsin, had the following statement:

"There is nothing more essential than food and water. U.S. pork producers can't telecommute and remain hard at work to provide pork products to American kitchens. But we have already suffered losses due to COVID 19-related concerns. These new financial setbacks come on the heels of two very difficult years during which pork was at the tip of the trade retaliation spear. We are pleased that the stimulus package includes funding for much-needed relief to livestock farmers, and we recognize a vote is pending. We look forward to working with Congress and the administration to make sure that all pork producers can access this critically important lifeline as we remain committed to keeping food on American tables."



Coronavirus Response Plan Provides Welcome Aid for Dairy; NMPF Thanks Congress

The National Milk Producers Federation commended members of Congress for successfully crafting a bipartisan package to provide support and relief during the coronavirus pandemic to all Americans, including dairy and other agricultural producers who are working night and day to provide a steady, safe supply of food to consumers nationwide.

“Dairy farmers have worked 24/7 to produce safe, affordable, and nutritious products for families throughout the coronavirus crisis, even as their own economic outlook grows darker,” said Jim Mulhern, President and CEO of NMPF, the largest organization of U.S. dairy farmers. “Forecasts for milk prices have dropped significantly in the past month, with greater declines possible as the COVID-19 outbreak continues. We are very grateful that Congress understands the significant economic challenges our farmers face and is rising to that challenge on a bipartisan basis.”

Congress is expected to pass quickly the Senate’s coronavirus relief package, released today. The measure creates a $9.5 billion coronavirus agricultural disaster fund that specifically includes livestock and dairy producers, as well as critical assistance to small businesses that are a key link in the entire dairy supply chain. This essential funding will boost finances – and morale – at a crucial time, given the likelihood of widespread economic damage that may affect consumer demand and international trade. The bill also provides $14 billion in additional funding for the Commodity Credit Corporation that USDA can use to assist producers.

“We commend the bipartisan Senate negotiations that produced this outcome. We especially wish to thank Senators Chuck Schumer and Debbie Stabenow for ensuring that dairy farmers will receive significant support,” Mulhern said. “Their work greatly improved this bill. We look forward to its passage.”

NMPF is also grateful to House Agriculture Committee Chairman Collin Peterson for putting forward multiple dairy provisions in the House of Representatives that will be helpful as the coronavirus-driven economic situation evolves, and to Rep. Glenn ‘GT’ Thompson for his ongoing advocacy and work during this challenging process.

NMPF also commended Agriculture Secretary Sonny Perdue for his Department’s proactive, ongoing work to help agriculture manage the impacts of COVID-19. “Secretary Perdue and his team have worked tirelessly to assist dairy and all of agriculture as we deal with the challenges of this pandemic by taking actions across the scope of the agency to provide flexibility and assistance. We are very thankful for their collaboration,” Mulhern said.

NMPF looks forward to working with Congress and the Trump Administration on the additional legislative and administrative responses that are anticipated in upcoming weeks.



Coronavirus Aid Package Critical for Farmers
American Farm Bureau President Zippy Duvall

The coronavirus aid package negotiated by Sen. Mitch McConnell (R-KY) and agreed to by Senate leaders and the White House will help ensure farmers and ranchers are able to continue feeding America in the midst of the COVID-19 crisis.

“Thanks to Leader McConnell and all the senators who diligently fought for farmers and ranchers to ensure they have our backs in the unprecedented COVID-19 crisis. The aid to farmers in this package, including funding for the CCC and the Office of the Secretary, will allow USDA to begin crafting an appropriate relief program for agriculture.

“America’s farmers and ranchers face enormous volatility as markets and supply chains rapidly react to changes, but I’ll say again that farmers and ranchers will not let Americans down. All members of Congress must understand that farmers have almost no control over the prices of the goods we produce, so fulfilling our commitment to America requires a team effort.

“We urge swift passage and will continue working with Congress and the Administration to ensure there are sufficient resources to assist farmers, ranchers, rural communities and those in need in these very trying times.”

Background:
-    COVID-19 impact on agriculture includes a rapid and unanticipated decline in commodity prices, the likely closure of ethanol plants, the dramatic decline in full-service restaurant and school meal demand, and the reduction in direct-to-consumer sales.
-    The agreement reportedly includes a $14 billion increase in USDA’s borrowing authority under the Commodity Credit Corporation, consistent with a long history of the CCC being tapped to responsibly support agriculture in times of crisis, and $9.5 billion to assist specialty crop producers, direct retail farmers and livestock operators.
-    Forty-eight agriculture groups joined Farm Bureau in calling on Congress to expand USDA’s borrowing authority under the Commodity Credit Corporation.



Stimulus Bill Would Address Most Urgent Concerns for Family Farmers and Rural Hospitals, NFU Says

To alleviate the current and potential economic fallout from the global COVID-19 pandemic, U.S. lawmakers are poised to pass a response, relief, and stimulus package with a nearly $2 trillion price tag.

The bill, which is the most expensive in the country’s history, includes direct payments to individuals, $130 billion for hospitals, $14 billion to support family farmers and ranchers through the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC), $150 billion for local and state governments, and $300 billion in financial aid for small businesses. Additionally, it allocates funding for nutrition assistance programs, rural broadband, and rural health resources, as well as assistance for specialty crop growers, local food producers, and livestock and dairy farmers.

National Farmers Union (NFU) is extremely concerned about the public health and financial implications of this pandemic for rural and agricultural communities. On behalf of its nearly 200,000 family farmer and rancher members, the organization has asked the administration to ensure that rural hospitals are adequately prepared for this crisis and that that our food system can continue to operate. In a statement, NFU President Rob Larew thanked Congress for heeding many of those requests and urged them to enact the legislation as soon as possible.

“The challenges our country is currently facing are unprecedented – and they call for unprecedented solutions.

“Top of mind for most rural Americans is the health and well-being of their families and neighbors. Rural hospitals have historically been overlooked and underfunded, leaving most without the equipment or personnel they need to handle an onslaught of critically ill patients. This is particularly concerning as rural citizens are, on average, older and more likely to have other health conditions, making them more vulnerable to the virus. 

“Though public health is the most immediate and pressing matter, family farmers and ranchers are worried about their long-term financial stability as well. Many were already strained after a multi-year farm economy crisis and a global trade war. Now markets are evaporating as restaurants and schools shutter and exports stall. Farm labor is in short supply with borders closed and visa processing at a standstill. And falling commodity prices are quickly eroding farm income. If these disruptions continue, many operations won’t be able to last more than a few months.

“By providing much-needed support for rural health care and family farm agriculture, the stimulus bill would address many of our most urgent concerns. In the coming weeks, we will learn more about the additional needs of our rural health care system, farmers, and rural communities, and we urge Congress to be ready to address them."



Ramping Up Beef Promotion & Education
The Nebraska Beef Council wants to share how they are connecting with consumers and helping them deal with cooking at home, buying and storing beef and other topics. Although these are activities they do on a daily basis, they are ramping up some specific topics that are timely due to the COVID-19 situation. They will continue these efforts and will be nimble based on the consumer needs.

Beef Quick Tips are being distributed via social media platforms including Facebook and Instagram to help consumers utilize the beef products they are stocking in their refrigerators and freezers. Digital platforms allow for quick message distribution giving us access to over 30,000 Nebraska consumers in just one weekend.

With so much beef product being purchased for at-home use, food safety information is also being distributed to ensure proper handling & storage.

Beef. It’s What’s for Dinner. Helps Consumers Prepare Beef At Home
 The Global Marketing and Research team at the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff, along with State Beef Councils across the country, are leveraging their extensive library of content, including advertisements, recipes, cooking videos and educational materials about beef nutrition to help consumers while they are home during the pandemic.

“We know consumers are seeking preparation and recipe tips for cooking beef at home,” said Alisa Harrison, senior vice president of Global Marketing and Research at NCBA.  “The good news is that BeefItsWhatsforDinner.com and our partners with the Federation of State Beef Councils have great recipe ideas, resources and cooking tips that can help consumers as they transition to eating at home more.”

These same recipes and resources are also being provided to food influencers, supply chain partners and the news media to support their efforts to educate consumers about food preparation and healthy eating. Additionally, NCBA, is keeping in close contact with supply chain partners to provide support as they adjust to the current consumer and business environments. Beef preparation and recipes tips that are being provided to consumers through Checkoff-funded content include:

    Recipe Collections – While Beef. It’s What’s For Dinner. has many recipe collections, current efforts are focused on sharing recipes that are easy, simple, affordable and kid friendly.
    
    Cooking Lessons – These lessons provide step-by-step instructions and tips for a dozen different cooking methods, from grilling to pressure cooking, these cooking lessons are a great resource for all levels of home chefs.
    
    Beef Safety Information – From beef handling and storage information to preparation guidelines and additional tips, the Beef Checkoff is providing consumers with the information they need for a safe eating experience.



Nebraska Agriculture in the Classroom Offers Virtual At-Home Learning and Online Resources

The Nebraska Agriculture in the Classroom (AITC) program is offering virtual at-home learning resources for teachers, students, and parents during the COVID-19 outbreak.

“We know this is a difficult time for educators and families in Nebraska. In continuing with our mission, we are happy to provide AITC materials in a convenient and helpful way for teachers and families now completing educational activities virtually and at home,” said Courtney Schaardt, director of outreach education.

The new virtual and at-home learning resources include live experiences, self-guided opportunities for students, and activity guides to aid parents and teachers.

The live experiences include a reading of the book Right This Very Minute. This beautifully illustrated book celebrates food and farming and inspires readers of all ages to learn more about where their food comes from – right this very minute. The video of the book read by Dawn Kucera, a farmer from Madison County, can be found on the Nebraska Farm Bureau Foundation Facebook page.

There will also be two virtual field trips to a Nebraska pig farm. These field trips will be live on the Nebraska Farm Bureau Foundation’s Facebook page. The first field trip is scheduled for April 14 at 1:00 p.m. (CT) with the subject of pig habitats, and the second field trip will be May 5 at 1:00 p.m. (CT) and will focus on the variation of pig traits.

“Facebook LIVE gives us an opportunity to allow pig farmers to open their barn doors to show what happens on their farm,” said Schaardt. “We’ve done virtual field trips for students in the classroom. Facebook gives us the opportunity to get into the homes of these students to continue their learning.”

The self-guided opportunities include many Agriculture in the Classroom resources, including all six editions of AgMag which highlight agriculture and the ways that we are connected to Nebraska agriculture. There are also a variety of websites available that are fun and interactive that highlight agriculture.

Virtual classroom visits will be an entertaining and unique way for students to get up close with learning about food, the environment, nutrition, and business. Each lesson is aligned to Nebraska State Standards for science, social studies, math, or language arts. The videos include a teacher teaching the lesson along with supplemental materials to coincide with the lessons. Visits will be available on the Nebraska Farm Bureau Foundation Facebook page starting April 15, with a new one being posted each week for at least six weeks. Virtual classroom visits will also be available on the Foundation’s YouTube channel.

“Virtual classroom visits will allow students to participate at their own pace,” said Schaardt. “Topics include pollination, water and soil, plant parts, future’s markets, pig habitats, and corn plastic.”

The Foundation revamped its resources to make the transition from in-person classroom learning to virtual learning and the plan is to add resources and learning opportunities as this challenging situation continues. Access all of the materials at www.nefbfoundation.org/virtual-learning.

Nebraska Agriculture in the Classroom (AITC) is a statewide program that helps K-12 students and teachers develop an awareness and understanding that agriculture is their source of life’s necessities. AITC has a long history of creating resources tied to state education standards to assist teachers in connecting their students to their source of food, fiber, and fuel – agriculture!

Agriculture in the Classroom ® is a program coordinated by the National Agriculture in the Classroom Organization and supported by the United States Department of Agriculture (USDA). In Nebraska, the Agriculture in the Classroom program is managed by the Nebraska Farm Bureau Foundation, whose mission is to engage youth, educators, and the general public to promote an understanding of the vital importance of agriculture in the lives of all Nebraskans. For more information about the Nebraska Farm Bureau Foundation, visit www.nefbfoundation.org.  



Center for Rural Affairs offers loan relief, emergency credit

The Center for Rural Affairs, based in Lyons, Nebraska, is offering relief to its borrowers experiencing a drop in revenue due to COVID-19.

“The Center for Rural Affairs is committed to helping our local business partners cope with the economic impact of COVID-19,” said Kim Preston, Center for Rural Affairs’ Rural Enterprise Assistance Project (REAP) director. “We know this is a difficult time for many, and we want to do what’s right for small business owners.”

Borrowers with loans in good standing who are experiencing a decline in revenue are eligible to request reduced payments or loan deferment for up to 90 days. In addition, for the next 90 days, all fees including late payment, overdraft, and rescheduling fees, will be waived for existing loans.

The Center for Rural Affairs is also making emergency credit available to qualifying Nebraska small business owners.

“We’re implementing an Express Loan based largely on credit history and pre-COVID-19 income that offers expedited funding of up to $7,500 for new borrowers and up to $10,000 for return borrowers with strong payment histories,” Preston said. “We will continue to offer affordable small business financing of up to $150,000 for small businesses in Nebraska through our traditional loan products.”

Staff, working remotely as much as possible, continue to provide free coaching and resources to small business owners. These services are offered in both English and Spanish.

“Our borrowers are an important part of the communities we serve,” Preston said. “We are committed to supporting local businesses. We’re in this for the long haul.”

The Center for Rural Affairs has lent more than $21 million to Nebraska small businesses since establishing its REAP program in 1990.

Visit cfra.org/onlineapplication to apply. Current borrowers can contact their loans specialist or call 402.687.2100.



 EPA Will Not Appeal 10th Circuit SRE Ruling

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today after the Environmental Protection Agency (EPA) decided not to appeal a ruling from the U.S. 10th Circuit Court of Appeals. In that ruling, the court found that the EPA had overstepped its authority in granting a handful of small refinery exemptions (SREs) and ordered the agency to reconsider the exemptions.

“This is the right decision by the EPA. Recently, I led a bipartisan group of my Senate colleagues in a letter urging the EPA not to appeal the 10th circuit’s decision, and I’m pleased to see the administration heed our advice. This is a victory for Nebraska’s economy, especially our farmers and ethanol producers who are struggling due to the economic downturn and low commodity prices,” said Senator Fischer.

In late January, the 10th Circuit Court of Appeals struck down three small refinery exemptions that were deemed improperly issued by the EPA. The court ruling stems from a May 2018 challenge brought against EPA by the Renewable Fuels Association, the National Corn Growers Association, the American Coalition for Ethanol and National Farmers Union. The court ruled that the RFS statute only allows agencies to grant extensions for continuously extended exemptions that have been in effect since 2011, which was not the case for these three exemptions.

In March, Senator Fischer led 16 of her Midwest colleagues in writing a letter to President Trump which encouraged EPA to not appeal the 10th Circuit Court decision.



IRFA: Trump Should Apply 10th Circuit Court Ruling Nationwide

The deadline has passed for the Trump administration to file an appeal of the 10th Circuit Court decision on refinery exemptions from the renewable fuel standard (RFS).

Earlier this year a 3-judge panel of the U.S. 10th Circuit Court unanimously found EPA abused their authority when granting refinery exemptions. Some refiners have appealed the decision, requesting a rehearing before the full 10th Circuit Court. With the deadline to file appeals past, Iowa Renewable Fuels Association Executive Director Monte Shaw made the following statement:

“The Trump administration’s decision today not to join the refiner appeals is good news in the midst of dark time for American biofuels producers, who are still hurting from three years of refinery exemption abuse, trades wars, and the demand-destruction caused by the spread of and global response to the coronavirus.

“But the future is still in limbo. We hope the Trump administration will quickly make clear to the market that they intend to do the right thing and apply the 10th Circuit Court decision nationwide. The Court’s decision is in line with Congressional intent of the RFS law. Applying this decision nationwide would be a key step to returning integrity to the RFS and ensuring 15 billion gallons will really mean 15 billion gallons.”



Upholding the 10th Circuit Court Ruling Brings Stability to the Renewable Fuels Industry

Iowa Secretary of Agriculture Mike Naig issued the following statement in response to the Trump administration’s decision to allow the 10th Circuit Court of Appeal’s ruling, which limited the use of small refinery waivers, to stand.

“We appreciate President Trump’s administration for upholding the unanimous 10th Circuit Court's decision,” said Secretary Naig. “Unfortunately, our biofuels producers are still struggling through the economic downturn, trade uncertainty and plummeting fuel demand. Many plants are reported to be ceasing production or closing. But, today, this is welcome news in a very uncertain time. President Trump’s actions signal that he has no intention of leaving rural America behind.”

The renewable fuels industry accounts for more than $5.3 billion — or about 3 percent — of Iowa’s GDP, $2.5 billion in household incomes and more than 48,000 jobs.



Renewable Fuels Coalition Welcomes Administration’s Decision Not to Seek Re-Hearing of Tenth Circuit SRE Ruling

Ethanol and farm groups today welcomed the Trump administration’s decision not to seek a re-hearing of a recent ruling by the U.S. Court of Appeals for the Tenth Circuit that struck down certain small refinery exemptions (SREs) under the Renewable Fuel Standard. On Jan. 24, a panel of Tenth Circuit judges unanimously ruled that the U.S. Environmental Protection Agency had vastly exceeded its authority in granting exemptions from 2016 and 2017 RFS requirements to three refineries.

The challenge was brought against EPA in May 2018 by the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol and National Farmers Union in response to the massive demand destruction caused by the Agency’s illegal and indiscriminate use of SREs. In the wake of today’s decision not to seek a re-hearing of the Renewable Fuels Association et al. v. EPA decision, the four groups called upon the EPA to immediately apply the court decision nationwide. The renewable fuels coalition released the following statement:

“We are pleased the Trump administration has decided not to side with oil refiners in seeking a re-hearing of this unambiguous and well-reasoned court decision in the Tenth Circuit. We trust this also means the administration does not plan to petition the Supreme Court for an appeal. Abiding by the court’s ruling is the right thing to do at a time when our industries and rural America are already suffering from the effects of COVID-19, the Saudi-Russia oil price war and ongoing trade disputes. We look to the RFS as a source of demand stability and certainty, especially in these troubling times. Requesting a re-hearing would have only prolonged uncertainty in the marketplace and exacerbated the pain and frustration already being experienced in the Heartland. With this key milestone now behind us, we look forward to EPA applying the Tenth Circuit decision nationwide to all SRE petitions, beginning with the 25 pending petitions for 2019 exemptions.”

In addition, the coalition noted that fully restoring the integrity of the RFS means also taking immediate action to restore 500 million gallons of inappropriately waived 2016 blending requirements, as ordered by the U.S. Court of Appeals for the D.C. District in 2017 (Americans for Clean Energy v. EPA). “This is EPA’s opportunity to turn the page and start a new chapter—one in which the Agency faithfully follows the law and implements the RFS in a manner consistent with Congressional intent,” the coalition stated.

For the 2016-2018 RFS compliance years, EPA issued 85 SREs eroding more than 4 billion gallons of renewable fuel blending requirements. In addition to the Tenth Circuit decision and ACEI remand, the coalition continues to consider other actions that can recapture that lost demand.



NBB Welcomes Trump Administration Decision Not to Appeal 10th Circuit Ruling

The National Biodiesel Board (NBB) today welcomed President Trump's decision not to join an appeal of the U.S. Court of Appeals for the 10th Circuit's ruling in Renewable Fuels Association v. EPA. The Court's January decision invalidated three small refinery exemptions that the Environmental Protection Agency granted retroactively for the 2016 Renewable Fuel Standards, ruling they were not extensions of existing exemptions as required by the language of the law. The 10th Circuit Court further stated that EPA unlawfully considered factors outside the RFS and ignored evidence that refiners recoup any cost to comply with the program.

Although several petroleum refiners requested an en banc rehearing by the Circuit Court, NBB expects EPA to consider all pending 2019 exemption petitions in a manner consistent with the nationwide application of the 10th Circuit's decision.

Kurt Kovarik, NBB's Vice President of Federal Affairs, said, "NBB and its members greatly appreciate President Trump's commitment to support the biodiesel industry and the Renewable Fuel Standard. Last October, the President directed EPA to mitigate the damage to the industry and the RFS from small refinery exemptions. EPA should put an end to the unwarranted expansion of small refinery exemptions.

"EPA's small refinery exemptions destroyed demand for hundreds of millions of gallons of biodiesel and renewable diesel over the past three years. Producers are still struggling to regain momentum and growth; a handful of facilities remain closed after shutting down last year. The industry is also facing the economic impacts of the coronavirus and the threat to U.S. energy security from foreign countries flooding the markets with cheap oil. Applying the Court's ruling nationwide would eliminate an unnecessary ongoing challenge for the industry."

Beginning with the 2016 RFS obligations, EPA rapidly expanded the number of small refinery exemptions. The agency granted exemptions to 85 small refineries over three years, excusing 38.3 billion gallons of gasoline and diesel from the RFS obligations. That action destroyed demand for more than 4 billion gallons of renewable fuel, including advanced biofuels such as biodiesel, renewable diesel, and sustainable aviation fuel. In a supplement to the 2020 RFS rule, EPA acknowledged that it must account for the exempted volumes in order to ensure that RFS volumes are met, as Congress intended.



Weekly Ethanol Production for 3/20/2020

According to EIA data analyzed by the Renewable Fuels Association for the week ending Mar. 20, ethanol production scaled back by 2.9%, or 30,000 barrels per day (b/d), to 1.005 million b/d—equivalent to 42.21 million gallons daily and the lowest volume since October. The four-week average ethanol production rate declined 1.1% to 1.041 million b/d, equivalent to an annualized rate of 15.96 billion gallons.

Ethanol stocks diminished by 1.9% to 24.1 million barrels for a seven-week low. Inventories shifted lower across all regions except the East Coast
(PADD 1). A majority of the stocks draw took place in the Gulf Coast (PADD 3).

There were zero imports of ethanol recorded for the second straight week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of January 2020.)

The volume of gasoline supplied to the U.S. market dropped 8.9% to 8.837 million b/d (371.15 million gallons per day, or 135.47 bg annualized). Refiner/blender net inputs of ethanol declined 4.5% to 874,000 b/d—equivalent to 13.40 bg annualized and a six-week low.

Expressed as a percentage of daily gasoline demand, daily ethanol production increased to 11.37%.



Retail Fertilizer Trends Again Mixed

According to retailers tracked by DTN, fertilizer prices for the third week of March 2020 are evenly mixed. The COVID-19 pandemic has had an effect on most everything in the world, even the fertilizer industry.

As has been the case in recent weeks, four fertilizers were lower compared to last month while the other four were higher. A new feature of the market last week, however, is the price of urea.

The nitrogen fertilizer was 6% more expensive compared to last month. The fertilizer's average price was $382/ton.

Three other fertilizers were higher in price compared to last month but none were up a considerable amount. 10-34-0 had an average price of $466/ton, anhydrous $491/ton and UAN32 $278/ton.

The remaining four fertilizers, meanwhile, had a slight price decrease compared to last month. DAP had an average price of $408/ton, MAP $433/ton, potash $370/ton and UAN28 $235/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.41/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.44/lb.N.

Retail fertilizers are now all lower in price from a year ago. DAP is 20% lower, MAP is 19% less expensive, anhydrous is 18% lower, both UAN28 and UAN32 are 13% less expensive, urea is 5% lower, potash is 4% less expensive and 10-34-0 is 1% lower from last year at this time.



Cattle on Feed
Brenda Boetel, Dept of Ag Econ, University of Wisconsin - River Falls

The USDA released the latest Cattle on Feed report on March 20. Overall the report was neutral, and there were only slight deviations from the analyst's expectations for the report.

Cattle and calves on feed for feedlots with capacity of 1,000 or more head totaled 11.8 million head on March 1, 2020. This is essentially unchanged from 2019, which was 11.7 million. Cattle on feed over 90 days is up 0.2%.

Marketings of fed cattle during February totaled 1.78 million head, 5.5% over 2019, with the same number of marketing days. Marketings represented 14.9% of the cattle on feed. March will likely see higher year-over-year marketings as well given the number of cattle on feed and the higher number of cattle on feed over 90 days.

Placements in feedlots during February totaled 1.71 million head, 7.9% below 2019. Net placements were 1.65 million head, down 7.8%. Although placements were expected to be lower, due to improved grazing conditions, the decrease in feedlot profit opportunity has contributed to the even lower placement numbers. Just one month ago, I was at a cattle producer meeting in Wisconsin talking about the profit potential feedlot producers would have this year. Today, cattle placed in March no longer have that opportunity and instead will experience losses.

Given the smaller placements in February and the likely smaller placements in March, expect smaller marketings later this summer.



Farm Futures planting intentions 2020: Farmers see corn as safe-haven
Jacqueline Holland, Grain Market Analyst, Farm Futures

While investors flocked to bonds for safety amid COVID-19 fears in recent weeks, farmers are resorting to their own version of a safe-haven asset: planting more corn acres.

According to Farm Futures’ latest survey, U.S. farmers intend to plant 96.4 million acres of corn during the 2020 planting season as a record number of 2019 prevented plant acres come back into 2020 production. Acreage projections for the 2020 season are the second-highest planting on record after 97.3 million corn acres were planted in 2012. The USDA releases its Annual Planting Intentions survey next Tuesday, March 31.

Our result is over 2 million more corn acres compared to USDA’s forecast of 94 million acres, released February at USDA’s Annual Outlook Forum. In the time between the two forecasts, the COVID-19 pandemic upended the global economy. Increased economic uncertainty, historically cheap input prices, and weakened soybean demand from China appears to have made corn the most optimal production choice amid limited options for Midwest farmers.

Survey respondents expect U.S. corn plantings to increase 6.7 million acres from last year’s planted acreage. Using a five-year average yield from 2014-2018, 2020 production could top out at a record-high 15.2 billion bushels, inflating domestic supplies following a lackluster year of exports.

Soybeans up as well
Farmers responding to the March 2020 Farm Futures survey also expect to plant 82.7 million acres of soybeans in 2020, up nearly 6.6 million acres from 2019 plantings. Survey results were 2.3 million acres shy of USDA’s February Outlook projection as farmers exhibited strong preferences for corn acreage in lieu of soybeans. But that could easily shift in the next couple weeks, depending mainly on weather factors.

The benchmark soybean-corn ratio has hovered at or near the pivotal 2.4 mark for much of the year. At its current level below 2.4, the markets favor corn acreage. But corn prices have lost strength in the last week amid corn basis collapsing across the Corn Belt last week on reduced ethanol demand.

The ratio is increasingly moving towards a preference for soybean acreage as ethanol plants across the country make downward production adjustments to offset shrinking profit margins. Potential purchases from China as part of the Phase 1 trade deal could further strengthen soybean prospects in 2020.

Weather will continue to be the dark horse in the race for 2020 planting acreage. Farmers in the Dakotas, Minnesota, Wisconsin, and Michigan are still scrambling to harvest the last of 2019 crops left in the fields following a cold and wet 2019 harvest season.

If early showers continue to saturate Midwest soils in upcoming weeks, soybean acreage and corn prices alike may get a boost; farmers may be further delayed finishing 2019 harvest and beginning 2020 planting.  If rain continues to plague the Midwest, corn and soybean acreage may both end up lower this year.

Wheat gets demand boost from pandemic
Respondents also expect to plant more wheat acres. Those surveyed indicate 31.7 million acres of winter wheat had been planted, half a million acres more than USDA’s official estimate. Surveyed growers expect to plant 14.2 million spring wheat and durum acres, up 1% from last year. Farm Futures’ final wheat estimate of 45.8 million acres is approximately 800,000 acres more than USDA’s February Outlook estimate of 45.0 million acres.

Wheat demand received an unexpected boost in recent weeks from panic buying as consumer stockpiling increased demand for bread, pasta, and flour. An unexpected Chinese purchase of 12.5 million bushels of hard red winter wheat last week was a strong windfall for the wheat markets.

The uptick in demand could position 2020 wheat acreage as an alternative to corn and soybean acres as winter wheat plantings remain at the second-lowest acreage in history amid record-high global stocks.

Outlook for other crops
Sorghum estimates from the March 2020 Farm Futures survey placed 2020 planting intentions at 6.5 million acres, up nearly 1.2 million acres from 2019 plantings following a rebound in Chinese exports.
Global cotton manufacturing was an early casualty in the initial days of the pandemic and its bleed will likely continue through the 2020 growing season. Cotton growers in the Farm Futures survey projected a 2 million acre drop in 2020 acreage to 11.7 million acres as the industry recovers from the simultaneous supply and demand shocks incurred by the pandemic.

Forecasts in February could not have predicted the economic collapse witnessed in the past several weeks. With that in mind, remember that next week’s report is merely an indication of what farmers want to happen, not necessarily what will happen. Markets are at the mercy of uncertainty and volatility, which means significant factors today may shift by the time the 2020 crop is put into the ground.

The Farm Futures March survey was administered to 1,083 respondents on March 4-20 via an email questionnaire. During that time, the COVID-19 pandemic wreaked havoc on global markets and commodities. The U.S. energy and biofuel industries have become casualties in an oil price war between Saudi Arabia and Russia within the same period.



NGFA, ag groups, request expansion of hours-of-service exemption for all agricultural haulers during COVID-19 pandemic

In a letter to the Federal Motor Carrier Safety Administration (FMCSA), the National Grain and Feed Association (NGFA) and 53 other agricultural groups today urged that the agency grant relief from federal drive time rules for all truck drivers hauling agricultural goods.

“As trucking capacity and the availability of drivers tightens due to COVID-19, neither surge nor normal trucking capacity may be adequately available to provide the required just-in-time deliveries to animal feeding operations, food processing and manufacturing plants, distribution facilities, export facilities and retail outlets, which could result in significant food chain supply disruptions,” the groups said.

The agency previously issued an emergency declaration due to COVID-19, but that only exempted drivers delivering food to distribution and retail facilities from compliance with federal hours-of-service rules that limit drive time until at least April 12. The agency expressly included livestock in the exemption. However, today’s letter notes that FMCSA’s previous action “was insufficient to adequately encompass the major beginning and middle segments of the food and agricultural supply chain….Each sector of that chain is linked, and when one segment is affected adversely, the ripple effects extend throughout the supply chain.”

To address tightening trucking capacity and disruptions to truck transport, the groups urged FMCSA “to expand and extend the hours-of-service relief from farm-to-fork.”

The NGFA and other groups said the emergency declaration should be extended to include truck transport of: raw and processed agricultural commodities, animal food and feed ingredients, processed food and food ingredients, honey bees and farm supplies (such as seed, fertilizer and other agricultural products and chemicals needed by farmers to grow crops) “to adequately preserve the resiliency of our nation’s food supply during the pandemic.”

The U.S. Department of Homeland Security (DHS) recently identified the full food and agricultural supply chain as essential critical infrastructure workers that have a special responsibility to continue operations, the letter noted.

“The operations within the food and agricultural chain are closely linked and continuing operations requires timely shipping and receiving…We urge FMCSA to extend the hours-of-service relief to include all food and agricultural critical infrastructure operations to ensure the viability of the food distribution system,” the groups stated.

The groups also requested that FMCSA add flexibility to the process for obtaining new restricted agricultural commercial driver’s licenses, assist in keeping truck washouts open that are necessary for the sanitary transportation of many food products, and provide leadership in harmonizing the temporary increases in truck weight limits that have been announced by several states.



The Andersons to Temporarily Close Some Ethanol Facilities

The Andersons, Inc. announced that it will idle its ELEMENT ethanol facility in Colwich, Kansas, in the coming days for an extended maintenance and repair period and will take spring maintenance shutdowns at the four facilities owned by The Andersons Marathon Holdings LLC (TAMH), a joint venture between The Andersons and Marathon Petroleum Corporation.

"Our primary reason for taking these actions now is the accelerating decline in demand resulting from the coronavirus (COVID-19) pandemic.

"In the case of the ELEMENT plant, The Andersons and ICM will use the time to focus on the remaining steps needed to gain what we anticipate will be an industry-low carbon score," said Jim Pirolli, president of The Andersons Ethanol Group.

"For the TAMH plants, we will extend the spring maintenance shutdowns, allowing us to practice social distancing and good hygiene to protect our employees and the essential contractors who are required for the shutdown.

"We continue to communicate regularly with all our employees about staying healthy and modifying work practices to reduce the spread of the COVID-19 virus," added Pirolli.

The company expects to produce ethanol and its coproducts at approximately 50 percent of capacity in April, with a return to more normal production when demand improves.

It also anticipates bringing the ELEMENT plant back into production in the latter part of the second quarter.