The government shuts down for the first time since 2018…which was the longest ever at 34 days, NBC News’ Sahil Kapur, Julie Tkierkin and Gabe Gutierrexz reported, further stating, “There is no clear path to a solution, with the two sides fundamentally at odds over how to resolve the impasse.”
A Lapse in Funding Plan, released by USDA indicates around 42,000 USDA staff would be furloughed, which is roughly half of the agency’s employees. Essential roles such as food safety inspections and some lab operations are set to continue, though non-mandatory data collection and research will cease.
Significant agency activities expected to lapse include:
Payment processing, disaster assistance processing, technical assistance, contracts and agreements not related to exempted programs, financial management beyond funds management, regulatory work, travel, trainings, trade negotiations, timber sales, hazardous fuels treatments, special use permits, surveys for high-risk plant pests and diseases for certain swine, cattle, and aquatic animal diseases, long-term studies and research on animal diseases, research and report publications, website updates, data products, and the majority of Risk Management Agency, Natural Resources Conservation Service, Foreign Agricultural Service, Food and Nutrition Service, National Institute of Food and Agriculture, Economic Research Service, National Agricultural Statistical Service, Rural Development, and Staff Office activities.
Agency activities that will continue include:
Certain farm loan processing items, certain natural resource and conservation programs, core nutrition safety net programs, essential food safety operations (inspections and laboratory work) to protect public health, responding to and preparing for wildland fires, activities supported by user fees (including grading, assessment, inspection, import and export), animal and plant health emergency programs (including new world screwworm, highly pathogenic avian influenza, exotic fruit flies, African swine fever, and rabies), Section 521 Rental Assistance Program outlays of prior obligations, human resource policies and systems, critical IT infrastructure and cybersecurity, emergency operations, and national defense and homeland security readiness.
Trump touts he’ll confront China over lack of soybean purchases…Soybean futures rebounded from session lows today after President Trump posted on Truth Social stating, “The Soybean farmers of our Country are being hurt because China is, for “negotiating” reasons only, not buying. We’ve made so much money on Tariffs, that we are going to take a small portion of that money, and help our Farmers. I WILL NEVER LET OUR FARMERS DOWN!”
Trump further stated soybeans will be a major topic of discussion when he meets with Chinese president Xi Jinping in four weeks at the Asia-Pacific Economic Cooperation summit.
“The Farming economy is not in a good place” …stated Agriculture Secretary Brooke Rollins in an appearance on Fox Business’s “Making Money with Charles Payne” on Tuesday morning.
Rollins noted, “The president has committed to supporting our farmers, and we’ll have an announcement very soon, likely next week.”
She further indicated that the “Golden Age” was “around the corner” for farmers.
Corteva to split seed, pesticide units… Global agriculture technology company Corteva announced plans on Wednesday to separate into two independent, publicly traded entities: “new” Corteva, which will continue to sell crop protection products – herbicides, fungicides, insecticides and biologicals – and SpinCo, which will focus on the seed genetics business.
SpinCo will include Pioneer, the company’s legacy seed brand established in 1926, as well as Brevant and regional seed brands, including Dairyland Seed.
Upon separation of the companies, Greg Page, current Corteva chairman will lead new Corteva, while Chuck Magro, current Corteva CEO, will become CEO of SpinCo.
In announcing the decision by Corteva, Magro said the farmer-centric organization appreciates that its customers want and need choice across their input decisions. See the full story by Rhonda Brooks here.
Investment could provide opportunities for Indiana corn growers…A project planned for Lafayette, IN will consume approximately 42,000 bushels of corn per day.
Ben Forsythe, Indiana Corn Marketing Council Sustainability and Value Creation and Innovation Director, noted, “We are always looking for ways to add value and drive new demand for Indiana corn, and this project would be a great win in that regard. We’ve had opportunities to meet with the Primient and Sustainia teams over the last year and are excited to help them see the project through.”
Sustainea Bioglycols is an innovative company focused on manufacturing sustainable plant-based chemicals with a low-carbon footprint, has announced plans to invest $400 million in Lafayette, IN. The company will work closely with Primient, a local producer of food and industrial ingredients from plant-based renewable sources.
Sustainea will ultimately convert corn-based dextrose precursors provided by Primient into Bio-MEG (monoethlene glycol), a chemical intermediate used in everyday products from bottles and food containers to footwear and more. The renewable feedstock will reduce the need for additional fossil-based plastics.
Oil slides to 16-week low…at midweek as a U.S. government shutdown spurred concerns around the global economy, while traders expected more oil supply to flood the market with a planned output boost by OPEC+ next month.
One of the country’s top oil producers, Diamondback Energy, stated earlier today that U.S. oil production will stall if prices stay near $60.00 per barrel as fewer driller sites are profitable at that level.
Tyson Foods agreed to pay $85 million…to settle a lawsuit by consumers who accused the largest U.S. meat company of conspiring with rivals to inflate pork prices by limiting supply in the $20 billion market.
The preliminary class action settlement disclosed on Wednesday is the largest in more than seven years of antitrust litigation by the consumers against pork producers, surpassing Smithfield Foods’ $75 million settlement in 2022.
It would boost consumers’ overall recovery to $208 million, including settlements with Brazil’s JBS, Hormel Foods and other defendants.
Its settlement requires approval by U.S. District Judge John Tunheim in Minneapolis.
Milei Government sells dollars again as peso drops for a third day…Argentina’s government sold dollars in the spot market on Wednesday to stem a slump in the peso that is now in its third day, according to Bloomberg, citing two people with direct knowledge of the matter.
The government sold more than $450 million, limiting the drop in the peso to 3.1% against the dollar, according to one of the contributors. “It’s the second day that President Javier Milie’s government has intervened in the spot market. On Tuesday it sold dollars before buying the greenback in block trades outside the market, ending the day with a net balance of $30 million in purchases.”
Ignacio Olivera Doll notes, “the sales highlight the strain the peso is under, even after the U.S. pledged aid and local authorities reintroduced restrictions late last week, including a 90-day ban on reselling dollars. Investors have noticed a sharp increase in demand for dollars from individuals, who are taking advantage of a rally in the currency last week that followed a flood of dollars into the market from agricultural exports.”