Wednesday June 24 Ag News

Bacon, Spanberger to Introduce Growing Climate Solutions Act

Congressman Don Bacon (NE-R-02) joined Congresswoman Abigail Spanberger (VA-D-07) to announce plans to introduce the Growing Climate Solutions Act in the House. Introduced in the Senate by Senators Mike Braun (R-IN) and Debbie Stabenow (D-MI), the bill seeks to help farmers, ranchers and foresters participate in the voluntary carbon market by establishing a Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program through the United States Department of Agriculture (USDA).

Through the Certification Program, USDA will help connect landowners to private sector actors who can monetize their sustainable farming practices. This will allow private landowners the ability to generate purchasable carbon credits and increase their yearly revenues. Through the program, USDA will administer a new website, which will serve as a “one stop shop” of information and resources for producers and foresters who are interested in participating in this marketplace.

“Many of our nation’s farmers and foresters do not know how to implement projects or navigate the current carbon credit marketplace,” said Rep. Bacon. “As a strong supporter of our agriculture and environmental industries, I am pleased to lead this bill in the House and help reduce barriers for our agriculture sector. Nebraska farmers and ranchers take great pride in being good environmental stewards and this bill can help them monetize that.”

“Central Virginia farmers and producers have a long record of successful participation in USDA’s voluntary conservation programs. They truly understand the complex ecosystems they inhabit, and they’re proud to be stewards of the land. At the federal level, we can do more to support them as they embrace practices that both boost yields and contribute to sustainable, climate-friendly farming practices,” said Spanberger. “The Growing Climate Solutions Act is an opportunity to make carbon credits more accessible to our district’s growers, and I’m proud to introduce this legislation alongside my colleague Congressman Bacon. Our legislation would also provide new technical assistance for farmers looking to enroll in the carbon marketplace, and it would support ongoing efforts related to carbon sequestration, grassland management, on-site energy generation, and more. Farmers were our nation’s first conservationists, and with their voices at the table, they’ll be instrumental in tackling the climate challenges of the future.”

This bill will help reduce the barriers to market entry and help our nation’s farmers, ranchers, and foresters promote sustainable farming practices.



NPPC Supports Bill Helping Farmers Participate in Carbon Markets

The National Pork Producers Council (NPPC) strongly supports legislation being discussed during a Senate Agriculture Committee hearing today that creates important elements needed to support a private carbon credit offset market. The bill would reward the valuable current and future contributions by pork producers and other sectors of agriculture to reduce greenhouse gas emissions.

The Growing Climate Solutions Act, introduced by Sens. Mike Braun (R-Ind.), Debbie Stabenow (D-Mich.), Lindsey Graham (R-S.C.) and Sheldon Whitehouse (D-R.I.), would direct the U.S. Department of Agriculture to create a program to provide transparency, legitimacy and informal endorsement of third-party verifiers and technical service providers that help private landowners generate carbon credits through a variety of agriculture and forestry related practices.

"U.S. pork producers, who have been at the forefront of environmental sustainability, are committed to the long-term protection of our country's natural resources," said NPPC President Howard "AV" Roth, a hog farmer from Wauzeka, Wisconsin. "Thanks to continuous on-farm improvements in nutrition, genetics and overall pig care, U.S. pork producers are doing more with less. This bipartisan effort will help give the private sector the standards and certifications needed to recognize and reward the important work being done by U.S. hog farmers to reduce our carbon footprint. We thank the senators for their leadership and look forward to passage of this important legislation."

According to recent Environmental Protection Agency findings, the production of U.S. pork is responsible for only 0.3% of all agriculture greenhouse gas emissions in the country. Likewise, according to a 2019 study by the National Pork Board, U.S. pork producers have used 75.9% less land, 25.1% less water and 7% less energy since 1960. This also has resulted in a 7.7% smaller carbon footprint.



Carbon Markets Contribute to Financial and Environmental Sustainability of Family Farm Agriculture

As family farmers grapple with the dual crises of a global pandemic and climate change, carbon markets present a critical solution for both, according to National Farmers Union (NFU) President Rob Larew.

In testimony presented today to the U.S. Senate Committee on Agriculture, Nutrition and Forestry, Larew highlighted the many challenges the American agriculture industry is currently enduring. “Family farmers and ranchers face an uncertain economic future,” Larew said, citing low commodity prices and unstable export markets, both of which have been exacerbated by the COVID-19 pandemic. As a result, farmers are holding record levels of debt and declaring bankruptcy at the highest rate since 1981.

Though the pandemic has “roiled domestic markets and exposed weaknesses in the food supply chain and farm safety net,” ultimately, it is a relatively short-term problem that will likely be resolved within the next several years. Climate change, on the other hand, “is the single greatest long-term challenge facing family farmers and ranchers, rural communities, and global food security.” Rising average temperatures, shifting precipitation patterns, changing growing seasons, increasingly frequent and severe weather events, and rising sea levels are already making it more difficult to grow crops and raise livestock – difficulties that will only intensify over time.

But the United States isn’t helpless to address the climate crisis; there are ways to adapt to and mitigate climate change, and “farmers and ranchers, if provided the right tools, can be a key part of a solution,” as Larew told the committee. Primarily, they can “reduce greenhouse gas emissions on a meaningful scale” through land management practices that build soil health and sequester atmospheric carbon. Coincidentally, these practices also promote farmland’s resilience to drought and flooding. On top of that, farmers can “contribute to a clean energy future thorough the production of renewable energy and biofuels, which will be key in ensuring the United States’ long-term energy security.”

These efforts, though effective, often require a considerable temporal and monetary investment, as well as technical expertise and labor, all of which may be particularly onerous for farmers to take on as they cope with the economic fallout of the pandemic. That’s where carbon markets come in. By creating “a sustainable revenue stream for farmers as they work to sequester carbon,” carbon markets can contribute to both the financial and environmental sustainability of family farm agriculture.

The Growing Climate Solutions Act, which would create a certification program for technical service providers to work with farmers as they implement practices to sequester carbon and sell the credits, is an important move towards establishing such markets. NFU endorsed the bipartisan bill when it was introduced earlier this month. In today’s testimony, Larew reiterated his support, indicating that that bill is a “sound first step in developing strong bipartisan climate policy for America’s family farmers and ranchers.”

Larew suggested several additions to strengthen the bill, including mechanisms to prevent farm-level consolidation, robust funding for public climate research, and protections for farmers from bad actors or faulty market efforts. “NFU commits to working with the committee to ensure the Growing Climate Solutions Act adequately reflects the needs of family farmers and ranchers,” he said in conclusion. “I look forward to continuing this dialogue about the role of family farmers and ranchers in addressing the climate crisis.”



Growth Energy Submits Comments on Growing Climate Solutions Act

Growth Energy CEO Emily Skor submitted comments to the record for today’s U.S. Senate Committee on Agriculture, Nutrition, and Forestry hearing on the Growing Climate Solutions Act, which aims to accelerate innovations in climate-friendly farming.

“With many states and localities increasingly exploring public policy options to lower carbon emissions, the use of biofuels can immediately contribute to lowering greenhouse gas emissions, reduce harmful air toxics, and provide affordable solutions to consumers and lawmakers alike,” wrote Skor. “These benefits are significantly attributed to innovations in agricultural practices like reduced tillage, use of cover crops, and continued ethanol plant innovation.”

Specifically, Skor pointed to the vast trove of public, private, and academic research illustrating  how continuous innovation has elevated ethanol as the single most affordable and abundant low-carbon alterative to toxic additives in the fuel mix.



Newly released white paper addresses crop insurance access

The backbone of rural communities in the Midwest, family farm operations rely on sound risk management options and practices to keep going.

A tool for many farmers to manage risk is federal crop insurance. However, according to a white paper released today by the Center for Rural Affairs, it is not an option used by all farms and ranches.

Authored by Policy Manager Anna Johnson, the white paper “Crop Insurance: Taking a Look at Access in Nebraska and Iowa” outlines the Center’s outreach efforts with underserved producers, which first began in 2017 and expanded in 2019.

Traditional crop insurance is available mostly for corn, wheat, and soybeans, leaving out many organic, small grain, fruit, and vegetable crops and livestock. In outreach efforts, Center staff stressed the value of diversification.

“Diversification can be another important strategy for mitigating risk,” Johnson said. “But, lack of access to reliable crop insurance is one reason many farmers avoid incorporating additional crops into their operation.”

As outlined in the paper, the federal crop insurance product Whole-Farm Revenue Protection (WFRP) may make diversifying easier. Available nationally, WFRP can be purchased along with other standard crop insurance for corn and soybeans, to add protection for third or fourth crops or livestock.

Though a variety of options are available to manage risk, the Center’s outreach efforts indicated there was a general lack of understanding among many diversified farmers about how crop insurance works and its value.

“While they are concerned about risk, many farmers and ranchers of diverse crops and livestock don’t see crop insurance as a viable risk management option,” Johnson said.

To read the full white paper, “Crop Insurance: Taking a Look at Access in Nebraska and Iowa,” visit cfra.org/publications/CropInsuranceAccess.



Joint Statement from USDA and FDA on Food Export Restrictions Pertaining to COVID-19

Today, U.S. Secretary of Agriculture Sonny Perdue and FDA Commissioner Stephen M. Hahn, M.D., issued the following statement regarding food export restrictions pertaining to COVID-19:

“The United States understands the concerns of consumers here domestically and around the world who want to know that producers, processors and regulators are taking every necessary precaution to prioritize food safety especially during these challenging times. However, efforts by some countries to restrict global food exports related to COVID-19 transmission are not consistent with the known science of transmission.”

“There is no evidence that people can contract COVID-19 from food or from food packaging. The U.S. food safety system, overseen by our agencies, is the global leader in ensuring the safety of our food products, including product for export.”

Background:
The U.S. Centers for Disease Control and Prevention (CDC), in conjunction with the U.S. Occupational Safety and Health Administration (OSHA), has issued guidance for manufacturing facilities, including food facilities, specific to controlling the spread of COVID-19 between workers. But the COVID-19 guidelines from CDC and OSHA are separate and distinct from the food safety requirements that all U.S. food facilities must follow to ensure food safety. 



Federal Agents Seize Almost 10 Tons of Illegal Meat at California Port

Officials with the U.S. Customs and Border Protection (CBP) intercepted 19,555 pounds of prohibited pork, chicken, beef and duck products arriving from China at the ports of Los Angeles and Long Beach (see photo courtesy of CBP). According to an official CBP statement, most of the animal products were mixed in boxes of headphones, door locks, kitchenware, LCD tablets, trash bags, swim fins, cell phone covers, plastic cases and household goods. CBP agriculture specialists identified, examined and seized 12 shipments containing a total of 834 cartons that lacked the required USDA entry documentation.

“Our close collaboration with our USDA strategic partners has resulted in an increased number of prohibited food products interceptions in a relatively short period of time,” said Carlos Martel, CBP director of field operations in Los Angeles. “CBP agriculture specialists remain committed and vigilant of foreign animal disease threats.”

In the first five months of fiscal year 2020, the interception of prohibited meats from China at the LA/Long Beach Seaport has increased 70% compared with the same period a year ago.



Weekly Ethanol Production for 6/19/2020

According to EIA data analyzed by the Renewable Fuels Association for the week ending June 19, ethanol production jumped 6.2%, or 53,000 barrels per day (b/d), to 893,000 b/d—equivalent to 37.51 million gallons daily and a thirteen-week high. However, production remains tempered due to COVID-19 disruptions, coming in 16.7% below the same week in 2019. The four-week average ethanol production rate rose 5.3% to 834,000 b/d, equivalent to an annualized rate of 12.79 billion gallons.

Ethanol stocks narrowed 1.5% to 21.0 million barrels. Reserves were even with the last week of December and 2.5% below year-ago volumes. Inventories tightened across all regions except the Gulf Coast (PADD 3).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, leapt 9.4% to 8.608 million b/d (131.96 bg annualized). However, gasoline demand was 9.1% lower than a year ago.

Refiner/blender net inputs of ethanol increased 5.3% to 831,000 b/d, equivalent to 12.74 bg annualized but 12.6% below the year-earlier level.

There were no imports of ethanol recorded for the fifteenth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of April 2020.)



Wheat Industry Applauds Bipartisanship Around the Grain Standards Reauthorization Act

Today, the U.S. Senate Committee on Agriculture held a business meeting to markup the United States Grain Standards Reauthorization Act (GSA) of 2020. The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) applaud the Committee for their bipartisan work to move the bill forward and reauthorize the GSA through September 30, 2025.

“Thanks in part to the advantage and premium international buyers place on the grain inspection system, U.S. wheat continues to maintain its competitiveness in the international market. Given the current uncertainty in trade agreements and many of the bearish factors working against U.S. wheat exports, it is critical we maintain one of our key advantages,” said National Association of Wheat Growers (NAWG) President and Cass City, MI farmer Dave Milligan. “To avoid any disruption in inspection services and keep the flow of grain moving NAWG encourages Congress to act quickly to reauthorize the Grain Standards Act before expiration in September.”

The United States Grain Standards Reauthorization Act of 2020, introduced by Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI), extends the authorization for the Federal Grain Inspection Service (FGIS) of the U.S. Department of Agriculture (USDA) to continue providing inspection services and to maintain an official marketing standard for certain grains and oilseeds. On July 31, 2019 Kansas wheat farmer Brian Linin testified to the Senate Committee on Agriculture on behalf of NAWG in support of reauthorization of GSA. Linin also serves on the Kansas Wheat Commission and is a board member of the U.S. Wheat Associates.

“Our exports markets are critical to U.S. wheat farmers’ bottom lines as they see 50 percent of U.S. wheat exported each year,” said U.S. Wheat Associates (USW) Chairman and Paulding, Ohio, wheat farmer Doug Goyings. “The grain inspection system is one of our key advantages over our competitors that has helped wheat and other U.S. commodities grow export markets. Our overseas customers value the independent system in place through the Grain Standards Act.”



U.S. SOY INDUSTRY PIVOTS CUSTOMER ENGAGEMENT AMID PANDEMIC TO STRENGTHEN PAN-ASIA RELATIONSHIPS

To continue to proactively market U.S. Soy to international buyers in the COVID-19 global landscape, the U.S. Soybean Export Council (USSEC) hosted two digital conferences in June for more than 1,700 customers and soybean industry representatives from the Pan-Asia region. The events, the Pan-Asia Soy Food Summit and Asia Trade Exchange 2020, demonstrated U.S. Soy’s versatility as both food and feed and highlighted how the soy industry has remained reliable and sustainable since the onset of the pandemic.

While COVID-19 has substantially impacted markets around the world, U.S. soybean farmers are meeting market needs through innovative tactics despite the challenges. Reaching key soy importers at each event, U.S. farmers and globally recognized experts discussed world agricultural trends, the 2021 U.S. soybean crop outlook, soybean demand fluctuations, U.S. Soy's deep commitment to sustainable production and more. Participants also heard about the initiatives and long-term investments U.S. Soy has undertaken to ensure that they have access to the most consistent supply of high-quality soybeans on the market.

“Pan-Asia is a significant market region for U.S. Soy. Our farmers are honored to provide a high-quality, nutritious product that contributes so greatly to the cultural fabric of people's lives across the region,” said Jim Sutter, USSEC CEO. “We’ve pivoted to engage customers virtually in new ways and maintain these thriving relationships to reiterate our unwavering dependability and adaptability as a proud supplier of choice.”

The events provided key decision makers and industry participants the opportunity to attend virtual trade shows with U.S. exporters and interact with other conference attendees in real-time. This unique digital convening provided a similar experience to meeting in person, but technology offered the flexibility to watch the sessions (at any time), visit organizations in a virtual exhibit hall or interact one-on-one with other industry professionals, with the benefit of embedded translation to break down language barriers.

“Southeast Asia continues to be a region that holds tremendous potential. The agricultural landscape in this part of the world is diverse with a growing population that consumes large amounts of U.S. Soy and soybean products,” said Tim Loh, USSEC’s Southeast Asia & Oceania Regional Director. “We continue to innovate to reach customers and stakeholders around the world. Many customers in attendance expressed appreciation for the opportunity to hear from experts in the field and network with U.S. and Pan-Asia organizations virtually that have a vested interest in utilizing soy in their products.”

U.S. soybean farmers also had a prominent presence at the Pan-Asia Soy Food Summit and Asia Trade Exchange, sharing their perspective of the 2020 planting season and discussing the sustainability practices that they’ve implemented on their farm.

“While the growing season is keeping us busy, these interactions are table stakes for our farmer leaders. We always hear from our customers that they like the total package provided by U.S. Soy, spanning the quality, consistency, reliability and the logistics superiority of our transportation infrastructure delivering the product,” said Monte Peterson, Chairman of USSEC, board member of the American Soybean Association and soybean farmer in Valley City, N.D. “Aside from the product itself, our importers have appreciated the professionalism and educational sessions that U.S. Soy offers. Looking ahead, it is important that we cultivate our partnerships in this region even further.”

USDA Secretary Sonny Perdue delivered a welcome address to kick off both conferences, in which he spoke on the importance of trade relationships and his confidence in U.S. Soy.

“I'm very proud of the reputation America's farmers have earned on the world stage. Other countries continue to recognize the United States as a reliable supplier of high-quality soybeans and other farm and food products. I'm confident that this virtual conference and trade show will result in even more mutual wins. And my hope is that this event gives suppliers of U.S. Soy an opportunity to connect and reconnect with buyers from across Asia to create new business relationships benefiting us all.”



Settlement Reached in Roundup® Weed Killer Cancer Litigation

Weitz & Luxenberg, and many other plaintiffs’ firms, have reached a settlement with Monsanto on behalf of almost one hundred thousand Americans who have been diagnosed with cancer after exposure to Roundup, the world’s most popular weed killer.

Weitz & Luxenberg was the first law firm to file suit against Monsanto in the fall of 2015, alleging that exposure to their widely used herbicide Roundup was causing Non-Hodgkin Lymphoma in tens of thousands of Americans from farmers to landscapers and maintenance workers to homeowners. The firm was also co-lead counsel in the Roundup multi-district products liability litigation in the Northern District of California before the Honorable Vince Chhabria. The settlement comes as Weitz & Luxenberg was preparing for trial dates that had already been set for 33 of those plaintiffs.

“It has been a long journey, but we are very pleased that we’ve achieved justice for the tens of thousands of people who, through no fault of their own, are suffering from Non-Hodgkin Lymphoma after using a product Monsanto assured them was safe,” said Robin Greenwald, Practice Group Chair, Environmental Pollution and Consumer Protection at Weitz & Luxenberg.

Weitz & Luxenberg did not participate in any way in the proposed class settlement for future Roundup claims that Monsanto also announced today. The firm will comment once it has the opportunity to review it.

The settlement between Monsanto and Weitz & Luxenberg is being overseen by court-appointed mediator Kenneth Feinberg.

“I want to thank Ken Feinberg for working with the parties to reach settlement and to help so many victims achieve some level of closure in their case,” said Perry Weitz, managing partner at Weitz & Luxenberg. “With so many claims against Monsanto scheduled to go before courts around the country in the coming year, and the multiple thousands of cases that would never see trial dates, we feel that this settlement is the best way to ensure that victims receive justice.” 



NAWG Responds to Bayer’s Announcement to Settle Pending RoundUp Lawsuits

Today, Bayer issued a statement announcing that it has decided to settle thousands of U.S. lawsuits around the company's Roundup® products.

NAWG President and Michigan farmer Dave Milligan made the following statement in response:

“Glyphosate, the active ingredient in Roundup, has been on the market for more than 40 years and has undergone some of the most extensive worldwide human health, safety and environmental scientific reviews.

“The U.S. Environmental Protection Agency (EPA) recently concluded its regulatory review of glyphosate, reaffirming that ‘there are no risks of concern to human health when glyphosate is used according to the label and that it is not a carcinogen.’

“Wheat growers work every day to produce a safe, affordable crop that balances crop rotation, input costs, production goals, and improvement of natural resources to protect the long-term sustainability of their farming operation. To achieve this goal, growers need all available tools at their disposal including glyphosate.

“Glyphosate is an exceptional product, relied on by many wheat growers including those working to implement conservation tillage practices and cover crops into their operations.

“NAWG acknowledges that in these settlements, Bayer has not admitted fault and has reiterated that glyphosate is not a carcinogen.”



INTL FCStone Inc. is Changing its Name to StoneX Group Inc.

INTL FCStone Inc. (NASDAQ: INTL) (the “Company”), a leading provider of execution, post-trade settlement, clearing and custody services across asset classes and markets worldwide, today announced that it is rebranding the firm as StoneX Group Inc. (“StoneX”). The StoneX Group name was approved by an overwhelming majority at this morning’s shareholder meeting and effective July 6, 2020 the Company will be traded under the symbol SNEX.

The StoneX Group name and its trade name “StoneX” carries forward the foundation established by Saul Stone in 1924 to today’s modern financial services firm. Today, the StoneX Group provides an institutional-grade financial services ecosystem connecting its clients to 36 derivatives exchanges, 175 foreign exchange markets, nearly every global securities marketplace, and a number of bi-lateral liquidity venues via its network of highly integrated digital platforms and experienced professionals. Our platform delivers support throughout the entire lifecycle of a transaction, from consulting and boots-on-the-ground intelligence, efficient execution, to post-trade clearing, custody and settlement.

Sean O’Connor, CEO, commented on today’s news, “Our firm has experienced transformational growth in recent years – in terms of the breadth and depth of our offering, our technology platforms and our global client base. This re-brand will help us better define and communicate our strategic focus on driving innovation and digitalization in the global markets going forward.”

In 2003, the Company set out to become a leading provider of financial services with the mission to meet the needs of underserved clients in specialized markets. As larger investment banks derisked after the financial crisis by withdrawing from markets, raising their minimums, and narrowing their offerings, the Company was able to occupy the gaps in the marketplace and seize opportunities left behind by these larger firms. Additionally and concurrently, as regulations and capital pressures drove mergers amongst smaller players in the industry, INTL FCStone Inc. became an opportunistic consolidator executing strategic acquisitions across business lines. These acquisitions all served as part of the Company’s transition to a global financial services firm that provides a unified digital platform that offers efficient access and connectivity to all major financial markets around the world. Simultaneously, INTL FCStone Inc. worked with larger institutions to meet their growing need for an institutional-grade partner to help them execute their market strategies and serve their clients.

“Our transition to the StoneX brand signals an exciting new phase for our company and our clients. We owe all of our success to our clients, and we will continue to put them at the center of everything we do as we pursue our goal of becoming recognized as a best in class financial services franchise,” added O’Connor.