Latest News From Jim Wiesemeyer

 Some Republican House and Senate members have expressed their concerns to USDA Secretary Tom Vilsack, particularly regarding the new payment formula used for ERP in 2022.

Farmers are opting to tap into their savings from recent prosperous years instead of taking out loans at the highest interest rates since 2007, according to surveys conducted by regional Federal Reserve banks.

While the U.S. and EU aim to make progress during an upcoming summit, reaching a final agreement is uncertain. This issue has significant implications for U.S./EU ties, climate goals, and geopolitics.

With the government funding in place for now, work on a new farm bill can continue, with the same questions (timing, funding, Title 1 reform, etc.) still being unanswered. 

As brent crude futures soar toward $100, it's creating a new battle in the Federal Reserve's effort to fight inflation. One money manager warns another rate hike is likely. 

For 2024, USDA projects that food price inflation will be lower than that seen in 2023 and significantly lower than the rise seen in 2022.

House Republicans, particularly on the House Ag Committee, are debating changes to the Conservation Reserve Program as part of the upcoming farm bill reauthorization.

EPA has been asked to exclude ditches from the definition of federal waters, include wetlands when they can't be distinguished from navigable waters, and erase the independent interstate waters and wetlands category.

The Farmland Security Act of 2023 seeks to further boost transparency in foreign ownership of U.S. farmland.

The leaders also drafted a proposed legislation earlier this month that promises treaty-like benefits for businesses seeking cross-border investment opportunities via the tax code.

House Ag Committee Chairman G.T. Thompson, along with other members, is seeking additional funding sources for the bill, but that will likely be the biggest farm bill hurdle that may trip up lawmakers.

EPA has a deadline from the Eight Circuit Court of Appeals to offer a progress report on the Waters of the U.S. rule by Sept. 15.

State officials find these states serve as early examples of the challenges other places may face in response to the recent Sackett ruling on WOTUS.

Meanwhile, service prices and the core index (which excludes food and energy) remain high, with the core CPI descending to 4.8%.

This slump, deeper than May's 7.5% drop, represents the largest decline since February 2020.

Dr. Carl Zulauf of Ohio State University, via a FarmDoc Daily article, proposes merging General CRP and Continuous CRP into a Site Specific CRP.

During a bilateral meeting on Thursday, U.S. Trade Representative Katherine Tai discussed with Mexico's Secretary of Economy Tatiana Clouthier various issues concerning energy and biotech corn.

Erik Lichtenberg, University of Maryland professor, says Congress could reorient farm bill conservation funds for climate change, but it could cut into their support.

Beijing on Monday announced export controls on gallium and germanium. Now the Biden administration is set to restrict Chinese companies’ access to U.S. cloud-computing services that use AI chips.

EPA plans to revise the "Waters of the United States" (WOTUS) regulation by Sept. 1. Both the EPA and the Corps of Engineers have regulatory duties for federal waterways.

While Sen. McConnell says the budget has little give, Sen. Boozeman has consistently said he will not support a farm bill that doesn't provide an increase in the Price Loss Coverage (PLC) program's reference prices.

Senate Ag Chair Debbie Stabenow (D-Mich.) opened the door to shifting almost $20 billion from her party’s climate and tax credit law enacted last year to more general spending in the upcoming farm bill.

Under the bill, the USDA and the FDA would become members of CFIUS and their powers would be expanded to better consider ag needs when it decides if a purchase would create national security risks.

Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.

Senate Ag Chair Debbie Stabenow, (D-Mich.) says there will be no new funding for the 2023 farm bill. However, Stabenow stressed she will not allow a cut in conservation funding.

The Senate and House Ag committees are facing delays in drafting the next farm bill, and it is expected to be the most expensive farm bill to date, clocking in at around $1.5 trillion.

China's exports to Russia reached a record high in April, amounting to $9.6 billion.

John Kerry, Special Presidential Envoy for Climate, says ag need to be "front and center" as the climate solution.

Rep. Thompson signaled he wants to hear “commitment from everyone, including the president, that we will get this done and in the manner I've been speaking about. Bipartisan, bicameral, on time and highly effective.'"

Lenders In the hearing seemed to agree on a boost to lending limits in USDA guaranteed loans as lawmakers ready for the next farm bill.

Exports rose 2.1% in March from the prior month to a seasonally adjusted $256.2 billion while imports declined 0.3% to $320.4 billion, the Commerce Department said.

Currently, foreign meat that is processed in U.S. plants can be labeled “Product of USA.”  Arun Alexander, Canada’s deputy ambassador, isn't convinced this is a good practice.

Michael Regan, EPA administrator, appeared before the House Ag Committee on Wednesday to discuss everything from WOTUS to the farm bill. Here are the highlights that will directly impact producers.

Non-tariff barriers “are real and can be more significant hurdles than tariffs,” U.S. Trade Representative Katherine Tai says.

While Tai has faced strong criticism about a lack of new trade agreements being pursued, she claimed this week that the U.S. is “nearing a consensus on the need to do things differently.”

Rail strikes ran headlines in late 2022 and came to an end in December when Congress passed an agreement. But there may be another strike looming in the transportation sector unless the Biden administration changes pace.

We need to know the final funding level in the debt limit debate before there are can be any attempt to mix and match farm bill titles and funds.

A resolution introduced Tuesday would support the “preservation” of the rule and “oppose efforts to impose new taxes on family farms or small businesses.”

The EPA’s new definition of Waters of the U.S. takes effect Monday. Here's a rundown of what is considered WOTUS and, therefore, subject to federal regulation.

Former President Donald Trump placed tariffs on more than $300 billion in Chinese goods during his presidency, raising costs for American companies, according to the ITC.

"It would be a lost opportunity if we just sit on the sidelines and watch other countries engage while the playing field continues to tilt against us," said Rep. Smith (R-Neb.).

"The prioritization of resource concerns must be left to the local level where producers decide how they can best address their unique and varied landscapes and needs," said Sen. John Boozman.

"In this current situation, the traditional approach to free trade agreements — which isn't just tariff cuts, but that they do tariff cuts on a fully comprehensive basis — isn't what we need right now,” Tai says.

“Over the long term, our projections suggest that changes in fiscal policy must be made to address the rising costs of interest and mitigate other adverse consequences of high and rising debt," CBO Director Swagel said

A Senate Ag Committee hearing Thursday on the new farm bill raised a issue that is now evident: the Title 1 farm bill safety net can no longer deal with the current ag environment.

The price surge comes as Europe announced a ban on Russian diesel fuel and G7 countries vowed to price-cap Russian oil products.

With Republicans now in control of the House, Rep. RandyFeenstra (R-Iowa) said he wants to introduce legislation shielding the stepped-up basis and like-kind exchanges.

“It’s a mystery as to why the USDA began to hide the names of many recipients,” said Scott Faber, senior vice president for government affairs for the Environmental Working Group.

The revamped foods program would absorb the functions of Center for Food Safety and Applied Nutrition and the Office of Food Policy and Response, as well as some of the work of the Office of Regulatory Affairs.

Vilsack said USDA believes there are more options for farmers other than “get big or get out. There’s got to be a system in which the many and most have a fair shot.”