NPPC Helped Push Contract Producer Aid, Modifications in CFAP 2 Announcement

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China: U.S. faces “most severe” inflation risks of any major economy
 


In Today’s Digital Newspaper


 

Market Focus:
• China: U.S. faces “most severe” inflation risks of any major economy
• Covid-19 outbreaks in sparsely vaccinated Asian countries disrupting factories
• U.S. banks bought a record $150 billion in Treasury bonds last quarter
• This Illinois County is losing people faster than anywhere in the U.S.

• Toyota to hike price of steel by steepest rate in more than a decade
• Wheat traders: Next big news is Canada's crop report Monday
NYT maps tell the story of two Americas: one parched, one soaked
• Potential hurricane for center Gulf late weekend
• Ag demand update

Corn and soybeans paring overnight losses
• Another round of rain for dry areas of the Midwest
• Anec raises its August corn export forecast for Brazil, cuts bean forecast
• German wheat crop likely a 3.6% drop from LY on adverse weather
• Record-setting Romanian wheat crop this season
• Corteva launched new GM soybean product in Brazil, just ahead of planting season
• Chinese pork prices edged down last week
• Month-plus streak of beef gains comes to an end
• Futures’ discount to cash hog index overdone

Policy Focus:
• House passes blueprint for a $3.5 trillion social plan
• USDA announces contract grower aid, including modifications pushed by NPPC
• USDA sets Oct. 12 for CFAP 2 signup deadline
• Why did Biden admin. punt on appealing judge's order re: disadvantaged farmers?

Afghanistan:
• Biden plans to stick to his Aug. 31 deadline for military withdrawal; asks for contingencies
• U.S. has helped evacuate more than 70,000 since Aug. 14
• Why is U.S. evacuating so many more Afghans than Americans?
• Unsanitary conditions at U.S. bases in Europe and Mideast holding Afghan refugees
• 2 Congress members fly to Kabul amid chaotic evacuation; Pelosi issues warning  
• Republicans call for formal Pentagon investigation into Afghanistan withdrawal
• China contacted Taliban about buying some of the left Black Hawk helicopters
• World Bank suspends funding for dozens of projects in Afghanistan
• Afghanistan faces an enormous economic
• Afghanistan sitting on deposits estimated to be worth $1 trillion or more

China Update:
• Ships resume berthing operations at halted container terminal in Ningbo, China
• Severe cargo backlogs developing at Shanghai’s Pudong airport
• Nearly 6% of world’s dry-bulk fleet idled at anchor off China’s coast
• Labor shortages materializing across China as young people shun factory jobs
• Huawei reportedly back in business with U.S.: Reuters
• Chinese pork prices edged down last week
• USTR Tai discusses China trade policy but offers little light on Biden team review

Trade Policy:
• Mexico signals car crash ahead re: USMC implementation

Energy & Climate Change:
• Interior Dept. announces oil, gas lease sales resumption


Livestock, Food & Beverage Industry Update:
• Labor shortages slowing supply chain; struggles to get food to stores on time
• McDonald’s drops milkshakes from menus in U.K. on supply chain issues
• OMB finishes review of prerule on labeling meat, poultry made from cell culture tech
• USDA issues FAQs outlining enforcement of Trump-era P&SA Act final rule


Coronavirus Update:
• U.S. intelligence agencies delivered classified report to Biden on virus’ origins
• J&J: Second dose of its Covid-19 vaccine generates a strong immune response
• USDA launches pandemic warning system
• Tyson offers $10,000 vaccine carrot

Politics & Elections:
• Herschel Walker, former NFL star and ally to Trump, is running for Senate in Georgia
• 55% now disapprove of Biden job performance: poll
• Emmy organizers stripped Andrew Cuomo of honorary award

Congress:
• Bill expanding federal power in voting procedures passes House; hurdles in Senate


Other Items of Note:
• Supreme Court reinstates Trump 'Remain in Mexico' policy
• A third or more of the phosphorous in Iowa's waterways comes from eroding stream banks

 


MARKET FOCUS


 

Equities today: Global stock markets were mixed to weaker overnight. The Dow opened slightly higher but is currently trading around 75 points lower. Asian stock markets were mostly weaker Wednesday on fears the surging coronavirus variant will once again dent economic growth in Asia. Japan’s Nikkei was down 7.30 points, 0.03%, at 27,724.80. Hong Kong’s Hang Seng fell 33.97 points, 0.13%, at 25,693.95. Meanwhile, markets in mainland China saw gains. European equities are mixed in early dealings. The Stoxx 600 is flat with regional markets seeing losses of 0.5% to gains of 0.3%.

     U.S. equities yesterday: The Dow gained 30.55 points, 0.09%, at 35,366.26. The Nasdaq rose 77.15 points, 0.52%, at 15,019.80. The S&P 500 gained 6.70 points, 0.15%, 4,486.23.

     Stocks

On tap today (see detailed list of events and reports below):

     • U.S. durable goods orders for July are expected to fall 0.5% from the prior month. (8:30 a.m. ET)
     • San Francisco Fed President Mary Daly speaks on fintech, racial equity and the financial system at 1 p.m. ET.
     • President Biden will host executives from major technology, financial and energy companies for a summit on national cybersecurity.

U.S. faces the “most severe” inflation risks of any major economy due to the large deviation between the growth of its money supply and GDP since the pandemic, the People’s Bank of China said recently in its quarterly monetary policy report. On Tuesday, Governor Yi Gang said he’ll aim to match money supply and nominal economic growth rates.

Covid-19 outbreaks in sparsely vaccinated Asian countries is disrupting factories, adding to a long list of challenges to delivering goods ahead of the holiday season. Authorities in Vietnam have ordered some plants to shut and others to drastically reduce workers, affecting Western brands — such as Adidas, Crocs and Steve Madden — that rely heavily on manufacturing there. The added costs from lockdowns in the region will further increase the sales price of consumer goods such as shoes, which in July was up 4.6% from a year earlier in the United States.

     Pandemic-linked inflation and labor shortages are putting the Fed’s new policy framework to a very public test. For more on that, link to NYT article.

U.S. banks bought a record $150 billion in Treasury bonds last quarter, hugely expanding their holdings relative to the new loans they have written. But with loan demand remaining sluggish, lenders are reluctantly buying bonds guaranteed to generate skimpy returns.

     Bonds

This Illinois County is losing people faster than anywhere in the U.S. Even in a decade when populous U.S. counties grew and less-populated ones shrank, tiny Alexander County in far southern Illinois stood out, the Wall Street Journal reports (link). Census Bureau data shows that between 2010 and 2020, it lost 36% of its residents, leaving 5,240, when no other county lost more than 30%. The decline adds to pressure on already stressed local-government finances and leaves residents asking whether there’s any future there. A yearslong plan to revive the port in once-bustling Cairo — where the Ohio and Mississippi rivers meet — may be the area’s last hope.

     Alexander County

Market perspectives:

     • Outside markets: The U.S. dollar index is higher ahead of U.S. economic updates with the euro and British pound both weaker against the greenback. The yield on the 10-year U.S. Treasury note has firmed to trade above 1.30%. Gold and silver futures are under pressure from a stronger US dollar, with gold under $1,795 per troy ounce and silver under $23.76 per troy ounce.

     • Crude oil has steadied after overnight weakness, with U.S. crude around $67.95 per barrel and Brent around $71.60 per barrel. Futures were weaker in Asian trading, with U.S. crude down 25 cents at $67.29 per barrel and Brent down 22 cents at $70.85 per barrel.

     • Toyota will raise the price of steel it sells to its suppliers by the steepest rate in more than a decade. Link.

     • Wheat traders say next big news is Canada's crop report Monday.

        The following reflect estimates of 15 traders and analysts (source: Reuters):

 

Average estimate

Lowest estimate

Highest estimate

Statscan 2020

 

(mln tonnes)

     

All wheat

22.6

18.9

25.4

35.183

Spring wheat

15.9

12.8

17.9

25.8415

Durum

4.1

3.3

5.4

6.5711

Canola

14.1

11.4

16.2

18.7197

Oats

3.0

2.4

3.3

4.5758

Barley

7.4

6.2

10.1

10.7406

Lentils

2.1

1.6

2.6

2.8678

Flax

0.448

0.344

0.560

0.578

Peas

2.9

2.4

3.8

4.5943

     • Ag demand: Importers in the Philippines tendered to buy 168,000 MT of animal feed wheat. Morocco received no offers in its tender to buy around 363,000 MT of durum wheat from the U.S. as part of a reduced tariff import quota tender. The Taiwan Flour Millers’ association issued an international tender to buy 48,875 MT of grade 1 milling wheat from the U.S. Tunisia tendered to buy 100,000 MT of soft wheat and 100,000 MT of animal feed barley from optional origins.

     • NYT maps tell the story of two Americas: one parched, one soaked. Link

     •  Potential hurricane for the center Gulf late weekend.  The European model has the storm coming up the Mississippi River while other models take it more to Southern Texas. 

     • NWS weather: Isolated severe thunderstorms and the potential for flash flooding forecast across the Northern Plains and Upper Midwest on Thursday... ...Persistent heat and humidity continues throughout much of the central and eastern United States, while dangerously hot temperatures return to the Southwest.

        NWS
        Wx Today

Items in Pro Farmer's First Thing Today include:

     • Corn and soybeans paring overnight losses
     • Another round of rain for dry areas of the Midwest
     • Anec raises its August corn export forecast for Brazil, cuts bean forecast
     • German wheat crop likely a 3.6% drop from LY on adverse weather
     • Record-setting Romanian wheat crop this season
     • Corteva launched new GM soybean product in Brazil, just ahead of planting season
     • Chinese pork prices edged down last week
     • Month-plus streak of beef gains comes to an end
     • Futures’ discount to cash hog index overdone

 


POLICY FOCUS


 

— Pelosi, moderates reach budget deal as House approves budget resolution, paving way for $3.5 trillion social spending package. The action came after a pressure campaign by Democratic leaders that included calls to lawmakers by the president and his top aides. Ten moderate Democrats had threatened to block the vote unless the House first passed a separate bipartisan Senate infrastructure deal. The deal used an obscure procedural tool and set a Sept. 27 deadline for passing the approximately $1-trillion physical infrastructure bill. The tool, called a “deem and pass,” allowed Democrats to approve the budget resolution without holding a separate vote on it. Instead, by a 220-212 vote, they approved the rules governing debate of an unrelated voting rights bill, which included language declaring that the budget had passed. Passing the budget resolution allows the committees to begin writing their sections of the $3.5-trillion reconciliation bill. Much of that work has already begun behind the scenes. The Senate intends to pass the spending bill using the reconciliation process, which allows certain budget-related legislation to be approved with 51 votes — a number Democrats can reach with the help of independents and Vice President Kamala Harris — rather than the normal 60-vote threshold needed to overcome a filibuster.

     Timelines: The Senate is scheduled to be out until Sept. 13. The House is not scheduled to return for votes until Sept. 20. Democrats have given committees a soft Sept. 15 deadline to complete the details of the spending bill, expected to include funding for climate change and an expansion of child-care assistance, paid family leave and Medicare. They hope to pass that measure in the House by Oct. 1, but the process could take longer in the Senate.

     Comments: The Sept. 27 deadline for a House vote on the infrastructure bill, pushed by centrist Democrats, means that vote could come while the budget package is still being negotiated — diminishing liberals’ leverage in those talks. Although the 10 House moderates, who had planned to vote against the budget unless the infrastructure vote came first, did not get that demand met, they did get leadership to agree to holding the infrastructure vote no later than Sept. 27, a few days before surface transportation authorizations are set to expire Oct. 1.

— USDA sets Oct. 12 for CFAP 2 signup deadline as it announces contract grower aid, including modifications. Updated assistance for producers under the Coronavirus Food Assistance Program 2 (CFAP 2) was announced by USDA with the agency setting an Oct. 12 deadline for producers to sign up for the assistance or modify existing applications for aid under the program. The shifts include that aid is now available for contract producers of eligible livestock and poultry and producers of specialty crops and other sales-based commodities.

     Contract grower aid: CFAP 2 payments for eligible contract producers of broilers, pullets, layers, chicken eggs, turkeys, and hogs and pigs, with ducks, geese, pheasants, and quail produced under contract also eligible commodities, along with breeding stock of eligible livestock and eggs of all eligible poultry types raised by contract producers.

     Contract grower payments were originally to be based on a comparison of eligible revenue for the periods of Jan. 1-Dec. 27, 2019, and Jan. 1-Dec. 27, 2020. With the changes, contract producers can now use eligible revenue from the period of Jan. 1-Dec. 27, 2018, instead of the 2019 date range “if it is more representative,” USDA said.

     USDA said the shift is aimed at making the program more flexible and equitable for contract growers who had reduced revenue in 2019 versus a normal production year. The revenue difference will be multiplied by 80% to figure a final payment. “Payments to contract producers may be factored if total calculated payments exceed the available funding and will be made after the application period closes,” USDA said. The Covid aid plan approved included $1 billion for payments to contract growers.

     USDA also announced additional flexibilities for those that increased the size of their operation in 2020 and did not have a full period of revenue for the Jan. 1-Dec. 27 period in either 2018 or 2019. USDA said that assistance is also now available to new contract producers who began their farming operation in 2020.

     Changes for sales-based commodities: USDA is amending the CFAP 2 payment calculation for sales-based commodities — primarily specialty crops — to allow producers to substitute 2018 sales for 2019 sales. Previously, payments for sales-based commodities were based only on 2019 sales, with 2019 used as an approximation of the amount the producer would have expected to market in 2020. Producers can now use 2018 sales for this approximation, including 2018 crop insurance indemnities and 2018 crop year Noninsured Disaster Assistance Program (NAP) and Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments.

     USDA also said that grass seed is now an eligible sales commodity under CFAP 2.

     Comments: It took USDA many months to issue the details amid growing frustration among some in the hog industry about the delay. While some have openly chastised NPPC officials for not pushing more for the aid, sources say the group’s officials worked a lot with USDA and lawmakers to modify the program to be more producer friendly and USDA took the advice in its announcement. USDA sent the changes to the Office of Management and Budget (OMB) for review Aug. 5 and the review was completed Aug. 18. USDA will most likely offer further details of the changes in a subsequent Federal Register notice which could provide additional information on the expected aid payment levels by commodity (per head payments), etc. Sen. John Boozman (R-Ark.), ranking member on the Senate Ag Committee, said that while he was “pleased to see USDA is now moving forward with implementation, it should not take well over half a year for hard-hit and previously left-behind producers to get emergency relief. I urge the department to swiftly process applications so that producers who desperately need this long-awaited help receive it.”

— Why did Biden administration punt on appealing a judge's order backing a preliminary injunction on a $4 billion program to provide debt relief to socially disadvantaged farmers? Legal experts said the Justice Department’s (DOJ) likely aims to avoid a potential Supreme Court showdown that could set back other affirmative action programs. Law requires the DOJ to formally notify Congress whenever the Justice Department decides to not defend an existing law.

     But others note there already is a Plan B: The Senate Agriculture Committee in upcoming reconciliation negotiations is pushing debt relief language.

 


AFGHANISTAN


 

— President Biden said that he planned to stick to his Aug. 31 deadline for military withdrawal but was willing to adjust “should that become necessary.” The decision flies in the face of efforts by U.S. lawmakers from both parties and foreign allies, who have pressed the White House to extend the deadline. With an estimated 10,000-15,000 Americans left, plus thousands of Afghans and other foreign nationals waiting to get out, many are betting the U.S. will have to stick around in some way after August 31 after all. Still, the Taliban controls the area around Kabul's airport, as the U.S. removes its final 5,800 troops — and shrinks the security perimeter they've been providing. Meanwhile, the Taliban said they would no longer allow Afghan citizens to reach the airport.

     The U.S. has helped evacuate more than 70,000 since Aug. 14. Only a fraction are believed to have entered the U.S. — though the administration won't say how many. Homeland Security Secretary Alejandro Mayorkas is using humanitarian parole to allow certain people leaving Afghanistan to come to the U.S. who would otherwise have no legal status. This could include people who've not yet completed the Special Immigrant Visa (SIV) process, an official said. Al Udeid Air Base in Qatar has been a top initial destination. The Biden administration announced last week that Bahrain, Denmark, Germany, Italy, Kazakhstan, Kuwait, Tajikistan, Turkey, the UAE, the U.K. and Uzbekistan are accepting people fleeing Afghanistan.

      Some are asking: Why is the U.S. evacuating so many more Afghans than Americans? President Biden has said that rescuing American citizens is the administration's top priority? As it stands, it appears that U.S. planes have evacuated about five Afghans for every one American.

— Unsanitary conditions at U.S. bases in Europe and the Mideast temporarily holding Afghan refugees have forced the military to look for new ways to get people moving to their next destination, which for many won’t yet be the U.S. Airbnb said it will offer free temporary housing for 20,000 Afghan refugees around the world.

— Two House members secretly flew to Kabul on an unauthorized oversight mission to witness the frenzied evacuation of Americans and Afghans, infuriating Biden administration officials and prompting House Speaker Nancy Pelosi (D-Calif.) to urge other lawmakers not to follow their example. The two members — Reps. Seth Moulton, Democrat of Massachusetts, and Peter Meijer, Republican of Michigan, both veterans — said in a statement that the purpose of their trip was “to provide oversight on the executive branch.” Both lawmakers have blasted the Biden administration in recent weeks, accusing top officials of dragging their feet on evacuating American citizens and Afghan allies. “There is no place in the world right now where oversight matters more,” they said.

— Republicans call for formal Pentagon investigation into Afghanistan withdrawal. Republicans are calling on the Pentagon's inspector general to launch a formal investigation into the Biden administration's bungled withdrawal from Afghanistan, including its decision to abandon scores of American-made weapons that are now in the Taliban's possession. Meanwhile, reports have surfaced that China has already contacted the Taliban about buying some of the left Black Hawk helicopters.
 

— World Bank suspended funding for dozens of projects in Afghanistan Tuesday, citing questions over the legitimacy of Taliban rule. The Washington-based institution has committed around $5.3 billion for reconstruction and development projects in Afghanistan since 2002 through its International Development Association that helps the world’s poorest countries.

     Afghanistan faces an enormous economic shock. The former head of the country’s central bank warned in an opinion article for the Financial Times (link/paywall) of an imminent financial and humanitarian crisis after the Taliban takeover.

— Afghanistan is sitting on deposits estimated to be worth $1 trillion or more, including what may be the world’s largest lithium reserves — if anyone can get them out of the ground, Bloomberg reports (link).

     Minerals
 


CHINA UPDATE



— Ships have resumed berthing operations at a halted container terminal in Ningbo, China, adding to optimism that full activity at one of the world's busiest ports will be restored shortly after a two-week shutdown to quarantine dockworkers. At least five container ships have left the Meishan terminal at Ningbo in the past few days after berthing there, according to shipping data compiled by Bloomberg. However, severe cargo backlogs are developing at Shanghai’s Pudong airport since a coronavirus outbreak triggered flight diversions, according to the South China Morning Post (link). Nearly 6% of the world’s dry-bulk fleet is idled at anchor off China’s coast because of severe port congestion.
 

— Labor shortages are materializing across China as young people shun factory jobs and more migrant workers stay home, offering a possible preview of larger challenges ahead as the workforce ages and shrinks, the Wall Street Journal reports (link). With global demand for Chinese goods surging this year, factory owners say they are struggling to fill jobs that make everything from handbags to cosmetics. Some migrant workers are worried about catching Covid-19 in cities or factories, despite China’s low caseload. Other young people are gravitating toward service industry jobs that pay more or are less demanding. The trends echo similar labor market mismatches in the U.S., where some employers are finding it hard to hire enough workers. But China’s problems also reflect longer-term demographic shifts — including a shrinking labor pool — that are legacies of the country’s decadeslong one-child policy, which was formally abandoned in 2016.

     China old

— Huawei is reportedly back in business with the U.S. According to Reuters (link), the blacklisted Chinese company can buy chips from the U.S. for its auto component enterprise.

— Chinese pork prices edged down last week. The average pork price across 16 provincial levels regions tracked by China’s ag ministry stood at 20.21 yuan ($3.10) per kilogram Aug. 16-20. That was a 2.6% dip from the week prior and a dramatic 57.6% under year-ago levels. Chinese supplies of pork have stabilized this year as herds rebuilt from African swine fever and consumer demand for pork faded, with some of the recent increase in supply driven by panic selling of overweight hogs as ASF continues to threaten production in some areas.

— USTR Tai discusses China trade policy but offers little light on administration’s review. U.S. Trade Representative (USTR) Katherine Tai met with the U.S. Chamber China Center Advisory Board and the leadership of the U.S./China Business Council recently to discuss China trade issues. A readout on the meeting indicated Tia “emphasized the importance of a thorough strategic assessment to craft resilient trade policy” and the administration’s commitment to “addressing China’s unfair trade policies and non-market practices that undermine American businesses and workers.” There was little indication on the status of the review of U.S./China trade policy Tai is conducting.
 


TRADE POLICY


— Car crash ahead? Mexico is warning that the U.S. interpretation of the USMCA trade deal that also includes Canada could push automakers to abandon the region due to cumbersome and costly content requirements.
 


ENERGY & CLIMATE CHANGE


— Interior Dept. announces oil, gas lease sales resumption. The Department of Interior (DOI) Tuesday (Aug. 24) announced it will resume the offshore oil and gas leasing program in the wake of a district court ruling against the pause in the lease sales announced by the administration earlier this year. DOI said it will comply with the ruling while an appeal is pending. In the court filing, DOI said it would submit the Record of Decision for Lease Sale 257 in the Gulf of Mexico by the end of August with a sale notice to be published in September. The Bureau of Ocean Energy Management (BOEM) will also a Draft Environmental Impact Statement on Lease Sale 258 in Cook Inlet. The Bureau of Land Management (BLM) via state offices will post parcels included in the Quarter 1 and Quarter 2 2021 leasing deferrals by the end of August. After the 30-day scoping period, BLM will conduct environmental reviews of parcels for potential leasing. While stating the actions paused earlier this year will move ahead, DOI said they will “continue to exercise the authority and discretion provided under law to conduct leasing in a manner that fulfills Interior’s legal responsibilities, including to take into account the programs’ documented deficiencies.” DOI said it is still reviewing what it called “noted shortcomings” in the lease/sales program and will complete a report on the matter. Plus, they will explore what changes need to be made to meet the administration’s target of cutting greenhouse gas emissions in half by 2030.
 


LIVESTOCK, FOOD & BEVERAGE INDUSTRY



— Labor shortages are slowing the supply chain, and distributors are struggling to get food to stores on time. Some of the largest U.S. food distributors are reporting difficulties in fulfilling orders as a lack of workers weighs on the supply chain, Bloomberg News reported. Sysco Corp., North America’s largest wholesale food distributor, is turning away customers in some areas where demand is exceeding capacity. The Houston company also said prices for key goods such as chicken, pork and paper products for takeout packaging are climbing amid tight supplies. In particular, production has slowed for high-demand, labor-intensive cuts such as bacon, ribs, wings and tenders, Sysco said.

     Another major distributor, United Natural Foods Inc., is having trouble getting food to stores on time. The company said the labor shortages, as well as delays for some imported goods — including cheese, coconut water and spices — are causing the problems. “We anticipate additional supplier challenges in the short term with gradual improvement through the fall and winter,” a United Natural Foods representative said.

     Sysco is aggressively hiring warehouse workers and truck drivers and offering referral and sign-on bonuses along with retention money for current staff. The entire food sector is seeing “massive labor shortages,” said Benjamin Walker, senior vice president of sales, marketing and merchandising at Baldor Specialty Foods, a New York distributor. “Service levels are the lowest I’ve seen in my 16-year career, and it doesn’t seem like it’s going away anytime soon.” Finding truck drivers is “next to impossible,” he said, and freight costs are rising daily. The company’s orders are arriving late and consequently facing delays in being sent to customers.

     On the outbound side, on-time deliveries are still above 50% but have fallen from the usual rate of more than 90%.

     Meanwhile, McDonald’s dropped milkshakes from its menus in the U.K. because of what it called “supply chain issues.”

— OMB finishes review of USDA prerule on labeling meat, poultry made from cell culture technology. The Office of Management and Budget (OMB) has completed its review of a prerule from USDA’s Food Safety and Inspection Service (FSIS) it received June 7 for an advanced notice of public rulemaking (ANPRM) covering labeling of meat and poultry products made using animal cell culture technology. The plan aimed at gathering public input on the topic. Meat and poultry products are required to be labeled under the Federal Meat Inspection Act and the Poultry Products Inspection Act.

     It is not clear when FSIS will finalize their plans as the unified agenda from the administration released earlier this year only indicated that the ANPRM was planned for release in July this year. But the final plan from USDA, whenever it emerges, will be an important one for the meat and poultry industry.

— USDA issues FAQs outlining enforcement of Trump-era Packers and Stockyards Act final rule. USDA has issued new guidance on how it will enforce the Packers and Stockyards Act relative to a final rule issued in December 2020 covering undue or unreasonable preferences or advantages under the law. The new guidance is presented in the form of a series of “frequently asked questions” (FAQs) that outline “how problematic provisions of the 2020 Undue Preferences rule will not apply to cases that seek to protect producers from a range of circumstances such as retaliation and racial discrimination by giant agribusinesses.” The FAQs (link) outline “additional criteria that may be utilized” in undue preference cases under the law and were developed in response to the executive order signed in July on competition and come as USDA is writing three new rules on enforcement of the Packers and Stockyards Act. USDA said in announcing the FAQs that it shows that it will “intent to use every weapon in its arsenal to ensure that growers and producers are protected from harm, even while the agency engages in the rulemaking process to update its rules.”
 


CORONAVIRUS UPDATE



Summary: Global cases of Covid-19 are at 213,269,438 with 4,453,725 deaths, according to data compiled by the Center for Systems Science and Engineering at Johns Hopkins University. The U.S. case count is at 38,075,232 with 630,816 deaths. The Johns Hopkins University Coronavirus Resource Center said that there have been 363,915,792 doses administered, 171,367,657 have been fully vaccinated, or 52.2% of the U.S. population.

— U.S. intelligence agencies delivered a classified report to Biden on the virus’ origins. The Wall Street Journal reports (link) the assessment by U.S. spy agencies didn’t yield a definitive conclusion, in part because of the lack of detailed information from China. It highlights the challenge the Biden administration confronts in getting Beijing to cooperate — something the Trump administration worked at for almost a year, ending in bureaucratic infighting and failure. Link to WaPo coverage of report.

— J&J said a study found a second dose of its Covid-19 vaccine generates a strong immune response, justifying a booster. Link for details.

— USDA launches pandemic warning system. USDA will spend $300 million to expand surveillance for Covid-19 and other diseases in animals, as well as establish an early warning system to better avoid future pandemics. The funds stem from the American Rescue Plan Act.  The department estimates it will require multiple years to build. Up to 75% of emerging diseases in humans “can also impact the health of animals,” said USDA Secretary Tom Vilsack.

— Tyson offers $10,000 vaccine carrot. Employees at nearly 50 Tyson chicken plants can win $10,000, once a week for the next five weeks, if they've received at least one dose of Covid vaccine, Worth Sparkman of Axios Northwest Arkansas writes from an internal flyer posted on Facebook. Tyson, America's biggest meatpacker, employs 139,000 people, most of them in the U.S., with about 24,000 in Arkansas. Only employees at the company's chicken plants are eligible for the $10,000 giveaway. Tyson's prepared foods, beef and pork plants are offering other monetary incentives.
 


POLITICS & ELECTIONS




— Herschel Walker, former NFL star and ally to Donald Trump, is running for the Senate in Georgia as a Republican. Walker, 59, was born and raised in Georgia, where he won the Heisman Trophy as a star halfback on the University of Georgia’s football team in the early 1980s, but he had lived outside the state for most of his adult life before changing his voter registration to Atlanta last week, The Atlanta Journal-Constitution reported Monday (link). Agriculture Commissioner Gary Black, who launched his campaign in June, recently mocked Walker for “pretending to change your car tags” and called on him to get off the sidelines and set stakes in Georgia if he was going to run. The Journal-Constitution says Walker’s name recognition and “Trump’s seal of approval” make him “the instant Republican front-runner.” But, “some senior Republicans worry that Walker will inevitably stumble against Warnock.”

— 55% now disapprove of Biden job performance: poll. President Biden's approval rating has dropped to 41% in light of the Taliban's takeover of Afghanistan, a USA Today-Suffolk University poll found. According to the survey results, 55% of those surveyed disapproved of Biden's job in office.

     62% said they disapproved of Biden's handling of the withdrawal of U.S. forces from Afghanistan, while 26% said they approved and 12% said they were undecided. Roughly 82% of participants said the issue of Afghanistan was either "very" or "somewhat" important to them. Biden's approval rating fell below 50% in several polls over the past week for the first time since he took office.

— Emmy organizers stripped Andrew Cuomo of an honorary award it gave the now former governor for last year’s Covid briefings. Link for details.
 


CONGRESS  


— House voted to strengthen federal oversight of state election laws. Senate Republicans will likely filibuster the bill.
 


OTHER ITEMS OF NOTE     


—  Trump’s ‘Remain in Mexico’ stands as Supreme Court rejects Biden lawyers’ appeal to reverse migrant asylum policy.  The Supreme Court by a 6-3 vote upheld a Texas judge’s order that would require the Biden administration to follow President Trump’s so-called Remain in Mexico policy. That program sought to deter Central American migrants from seeking asylum in the United States by requiring them to stay in Mexico until their cases were heard in the U.S. Biden’s lawyers said the Texas ruling conflicted with the principle that the executive branch has leeway on how best to enforce the immigration laws. In a brief order, the justices said the Biden administration “failed to show a likelihood of success on the claim that the memorandum rescinding the Migrant Protection Protocols [Remain in Mexico] was not arbitrary and capricious.” The order cited last year’s 5-4 decision that blocked Trump from repealing the Obama-era immigration program that shielded immigrants who were brought to this country as children and lived here illegally.

— A third or more of phosphorous in Iowa's waterways comes from eroding stream banks. That works out to a long-term average of 7,680 tonnes a year of the plant nutrient that also is a factor in the "dead zone" in the Gulf of Mexico. Link for details.
 


EVENTS AND REPORTS


 

Wednesday, August 25

· Subsidies and farmland protection. The World Resources Institute (WRI) holds a virtual discussion on a new report titled "Repurposing Agricultural Subsidies to Restore Degraded Farmland and Rural Prosperity."

· ASEAN trade. U.S. Trade Representative Katherine Tai will meet with international union presidents in advance of the Association of Southeast Asian Nations (ASEAN) Economic Ministers-USTR Consultations in September.

· Energy issues. The Business Council for International Understanding (BCIU) holds a virtual discussion on the Biden Administration's strategic approach to energy security in the Middle East/North Africa region, the establishment of a Net-Zero Producers Forum, and the ways in which the Energy Department is working to increase US energy exports to the region.

· Financial system. The Aspen Institute holds a virtual discussion on "Fintech, Racial Equity, and an Inclusive Financial System."

· Economic report. Durable Goods Orders     

· Energy reports. EIA Petroleum Status Report | Weekly Ethanol Production

· USDA reports. ERS: Food Price Outlook  NASS: Broiler Hatchery | US and Canadian Cattle | US and Canadian Hogs


 

 

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