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Iran launches attack on U.S. base in Qatar, Trump raises hopes of de-escalation... Iran’s military said it carried out a missile attack on the Al Udeid U.S. airbase in Qatar, retaliating for the American bombing of its nuclear sites on Sunday. Qatar’s defense minister told Al Jazeera its air defenses had intercepted missiles directed at the Al Udeid air base, the largest U.S. military installation in the Middle East.
Despite the escalating conflict and tensions in the Middle East, crude oil prices posted sharp losses. Iran’s retaliatory actions were telegraphed and expected, largely a symbolic move.
President Donald Trump raised hopes of de-escalating the Middle East conflict after Iran’s strike against a U.S. base, saying the attack was “very weak” and telegraphed ahead of time by Tehran.
“I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured,” the president said in a social media post. “Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same.”
Meanwhile, war risk insurance premiums in the Middle East have surged amid the escalating warfare in the region.
Corn conditions unexpectedly decline... USDA rated the corn crop as 70% “good” to “excellent,” down two percentage points from the previous week. Analysts expected no change. The “poor” to “very poor” rating increased one point to 6%.
USDA reported 97% of the crop was emerged, one point behind the five-year average. Corn silking stood at 4%, one point ahead of normal for this date.
Soybean conditions unchanged... USDA rated 66% of the soybean crop as “good” to “excellent,” unchanged from the previous week. Analysts expected a one-point improvement. The “poor” to “very poor” rating held at 7%.
USDA estimated the soybean crop was 96% planted, one point behind average. Emergence stood at 90%, equal to average. USDA reported 8% of the crop was blooming, one point ahead of normal.
Spring wheat conditions unexpectedly decline... USDA rated the spring wheat crop as 54% “good” to “excellent,” down three points from last week. Analysts expected the good/excellent ratings to be unchanged. The “poor” to “very poor” rating increased six points to 15%.
USDA reported 93% of the crop was emerged (97% average) and 17% was headed (18%).
Winter wheat harvest continues to lag... USDA reported 19% of the winter wheat crop was cut as of Sunday, nine points behind average. Harvest stood at 70% in Texas (73% average), 35% in Oklahoma (73%) and 20% in Kansas (31%).
Cotton conditions decline... USDA rated the cotton crop as 47% “good” to “excellent,” down one point from last week. The “poor” to “very poor” rating increased one point to 20%.
USDA reported cotton planting at 92% (95% average), with 26% squaring (26%) and 5% setting bolls (6%).
USDA advances supplemental disaster relief program rules for review... USDA has submitted its Supplemental Disaster Relief Program rules to the Office of Management and Budget (OMB) for review. The program is designed to provide financial assistance to agricultural producers facing losses in revenue, quality or crop production due to weather-related disasters in 2023 and 2024. USDA had aimed to send the rules to OMB by June 7, with a goal of completing the review by June 27. This timeline is intended to allow producers to begin signing up for assistance as early as July 7.
APHIS launches listening sessions on screwworm solutions... USDA’s Animal and Plant Health Inspection Service (APHIS) is inviting public input on the next phase of New World screwworm (NWS) eradication efforts. The initiative aims to drive innovation to combat the pest across Mexico, Central America and to safeguard U.S. animal agriculture.
Starting June 27, APHIS will host four virtual listening sessions focused on sterile fly production, alternative eradication tools, the benefits and costs of domestic versus international sterile fly operations and other new ideas. Stakeholders are encouraged to register in advance, provide brief oral comments and submit written input before or after the sessions.
Session schedule:
- June 27: Sterile Fly Production Technology.
- July 2: Eradication Tools and Technologies Aside from Sterile Fly Production.
- July 7: Benefits and Barriers of Enhanced Domestic vs International Sterile Fly Production.
- July 11: Other Innovative NWS Ideas.
For more information and registration details, visit the APHIS website.
Congress split on biofuel tax credit overhaul... The House and Senate reconciliation bills both propose major changes to the 45Z Clean Fuel Production Tax Credit, aiming to extend and reshape federal support for biofuels. While both chambers extend the credit through 2031 and relax greenhouse gas (GHG) emission calculations by excluding indirect land-use change, they sharply diverge on rules for feedstock sourcing, credit value and how flexibly the credits can be transferred.
House Reconciliation Bill
- 45Z credit extension: Extends the 45Z credit through Dec. 31, 2031, replacing prior biofuel subsidies like the ethanol tax credit (VEETC) and biomass-based diesel credit.
- 40B credit extension: No provision.
- Feedstock restrictions: After Dec. 31, 2025, fuels must use feedstocks exclusively grown or produced in the U.S., Canada or Mexico to qualify. Foreign feedstocks are banned.
- Emissions calculation: Indirect land-use change emissions are excluded from greenhouse gas (GHG) assessments, making conventional biofuels (e.g., corn ethanol) more likely to qualify.
- Credit value: Offers up to $1.00 per gallon for non-aviation fuel and $1.75 per gallon for aviation fuel if wage/apprenticeship requirements are met.
- Manure-based biogas: Transportation fuels derived from animal manures — including dairy, swine, and poultry waste — are eligible for the 45Z credit. Distinct emissions rates for manure feedstocks. Rather than applying a generic carbon-intensity rate, mandates unique emissions rates for each type of animal manure, increasing accuracy and improving credit certainty.
- Transferability: Repeals transferability for fuel produced after 2027.
- Foreign ownership limits: Significantly broadens definition of a “Prohibited Foreign Entity” (PFE), covering both “Specified Foreign Entities” and “Foreign-Influenced Entities.” Covered entities: Includes Chinese military companies, entities subject to the Uyghur Forced Labor Prevention Act, battery producers ineligible for DOD contracts (e.g., CATL, BYD, Envision, Gotion), and any entity controlled (over 50% ownership or beneficial interest) by China, Russia, North Korea, or Iran. Scope: The bill prevents most IRA energy tax credits from being claimed by companies that are PFEs or that have significant business relationships (licensing, sourcing, payments) with PFEs. Attribution: The House bill applies strict attribution rules, potentially sweeping up public entities and complex ownership structures.
- Cost impact: Estimated to cost $45 billion from 2025–2034, with $8.5 billion in FY 2031 alone. Critics argue this subsidizes mature industries without incentivizing innovation.
Senate Reconciliation Bill
- 45Z credit extension: Extends 45Z through 2031.
- 40B credit extension: Short-term extension of the 40B credit. Specifically, the extension covers biodiesel and renewable diesel produced through Sept. 30, 2025. This extension is designed to provide a bridge for producers as the industry transitions to the 45Z credit.
- Feedstock rules: Allows foreign feedstocks but imposes a 20% reduction in credit value for fuels using non-U.S. feedstocks after Dec. 31, 2025.
- Emissions calculation: Also excludes indirect land-use change emissions.
- Aviation fuel: Retains the SAF premium but removes land-use change accounting.
- Manure-based biogas: Actively encourages biogas from animal waste, like the House bill. It not only qualifies manure-derived fuel but also enforces manure-specific carbon accounting, a policy feature aimed at rewarding genuine GHG reduction through waste-derived energy.
- Transferability: Maintains full transferability for the credit’s duration, unlike the House version.
- Foreign ownership limits: FEOC rules retained, but modified: The Senate bill keeps the House’s framework but makes several clarifications and adjustments to make the rules more administrable for industry. Thresholds and control: The Senate increases the ownership and debt thresholds that trigger restrictions, making it less likely for minor foreign involvement to result in credit denial. Payment rules: Only payments to a foreign entity that result in “effective control” (rather than any payment over a low threshold) can trigger a denial of credits, which is less punitive than the House version. Effective Dates: The Senate bill delays the effective date of these restrictions compared to the House, providing a longer transition period for compliance. Complexity: While more workable, the Senate approach still introduces administrative complexity and the risk of inadvertent credit denials due to nuanced attribution rules.
- Cost structure: No direct cost estimate, but the 20% reduction for foreign feedstocks aims to curb spending while supporting domestic agriculture.
Final legislation will need to bridge these differences. The House is pushing for strict domestic sourcing and large, less-flexible subsidies, while the Senate aims for a more moderate approach that balances support for U.S. agriculture with fiscal restraint and international trade considerations.
USDA to launch new national SNAP information database... USDA is creating a new National Supplemental Nutrition Assistance Program (SNAP) Information Database, according to a recent Federal Register notice. Operated by the Food and Nutrition Service (FNS), the system is designed to “validate the accuracy of eligibility determinations and strengthen SNAP and government program integrity,” responding to recent Executive Orders to combat waste, fraud and abuse.
The new database will cross-check SNAP recipient eligibility against federally maintained data, flag duplicate enrollments and conduct enhanced eligibility and integrity checks by leveraging data-sharing across federal and state systems. The database will include details linked to EBT transactions, such as the total value of benefits received by participants.
USDA said the data may be shared with the Department of Justice, Congress, legal proceedings and other federal agencies as permitted by law. Technical safeguards will be deployed to protect sensitive information.
Public comments are invited, though no deadline has been set. The system is set to become effective July 23 unless amended in response to public feedback. Any changes resulting from comments will be published in a revised notice.