Evening Report | September 26, 2023
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Ship insurance facility set up for Ukraine grain exports... A new marine insurance facility for Ukrainian grain exports using the country’s humanitarian corridor has been set up in conjunction with Ukraine’s authorities, insurance broker Miller said. London-headquartered Miller said it had teamed up with British maritime technology company Clearwater Dynamics (CWD) to develop a war risks insurance facility for grains shipments via three ports at Chornomorsk, Odesa and Pivdennyi. Miller declined to name the underwriters involved in the facility, which offered both cargo and hull insurance for a ship.
The facility will use CWD’s technology to enable ship tracking and real time monitoring of a vessel in transit, in port and until it exits the high-risk area, Miller said.
Canada says it will launch review of proposed Bunge/Viterra merger... The Canadian government will review a planned merger between U.S. grains merchant Bunge and Glencore-backed Viterra, Canadian Transport Minister Pablo Rodriguez said. As part of the review, the transport ministry will launch a public interest assessment of the proposed acquisition, which must be completed by June 2, 2024, he added.
Vilsack details potential USDA shutdown impact on nutrition programs and farming... USDA Secretary Tom Vilsack explained the potential consequences of a government shutdown on USDA nutrition programs and the farming sector at a White House press briefing on Monday. Vilsack noted programs like the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and assistance to farmers would be affected. He emphasized the negative impacts on families, local economies and rural communities, and the risk of disrupting vital nutrition assistance and farming support. Vilsack also stressed the need for Congress to reach a resolution and avoid a shutdown that would harm essential services, including crop loans and rural housing loans.
“We anticipate and expect that more than 50,000 of those who work for USDA will be furloughed,” Vilsack said. “And when they’re furloughed, it means that they don’t receive a paycheck. Because they don’t receive that paycheck, their local economies get impacted and affected. It’s across the board. It’s every county in the country. We have a presence in every county in the country. So, it’s going to impact and affect literally every county in the country. It’s FSA offices. It’s rural development offices. It’s NRCS [Natural Resources Conservation Service] conservation employees. It’s some of the Forest Service employees. It’s a lot of the researchers and people who work for the Agricultural Research Service — ARS. It’s — it’s administrative staff.”
Regarding food safety, Vilsack said inspectors for meat, poultry and processed eggs who work for USDA’s Department's Food Safety and Inspection Service would remain on the job but he referred questions about other food inspections to the Food and Drug Administration.
As for new farm bill impacts, Vilsack said any shutdown would make it impossible for USDA employees to provide the technical assistance that congressional leaders ask for in writing it. “They call our office for technical assistance,” Vilsack said. “The phone is not going to get answered because no one is there. Why aren’t they there? Because we’re in a shutdown.”
Vilsack addresses concerns about foreign ownership of U.S. agricultural land... Vilsack also discussed the issue of foreign ownership of U.S. agricultural land and businesses during a White House briefing in anticipation of an upcoming Senate Agriculture Committee hearing on the topic Wednesday. Responding to questions about whether the purchase of U.S. farmland by Chinese entities poses a threat to national security or food security, Vilsack expressed concern, particularly regarding instances such as Chinese interests acquiring land near military installations in North Dakota. He emphasized the need for greater engagement in the Committee on Foreign Investment in the United States (CFIUS) process to address these concerns, acknowledging there is work to be done to enhance the tools and mechanisms for monitoring such transactions. Vilsack also mentioned the complexity of tracking land purchases, as every county has its own recorder’s office, making it challenging to identify foreign purchasers. To better address the issue of foreign land ownership, Vilsack highlighted the necessity of developing methods to collect and analyze information promptly, enabling a more effective determination of potential threats. Additionally, he discussed the possibility of the Agriculture secretary becoming a member of the CFIUS committee to enhance oversight and improve the process.
IEA emphasizes urgency of a more rapid reduction in fossil fuel usage... While cleaner energy technologies, such as electric vehicles and solar power, are gaining traction, the International Energy Agency’s (IEA) latest report underscores the necessity for a quicker decline in fossil fuel consumption to avert severe climate consequences. However, some industry experts have expressed reservations, suggesting IEA remains overly optimistic in its projections regarding the reduction of oil and coal demand. This highlights the ongoing debate surrounding the pace at which the world should transition away from fossil fuels to address the pressing issue of climate change.
