Ag News, Tuesday November 10, 2015

NCGA Disappointed in House Members for Signing Anti-Ethanol Letter

A group of House lawmakers have asked the Environmental Protection Agency to reduce the volume of ethanol in the nation's fuel supply—a move the National Corn Growers Association expressed deep disappointment over. In a letter to EPA Administrator Gina McCarthy dated November 4th, House members ask the EPA to reduce the Renewable Volume Obligation, the amount of biofuels blended into the nation's fuel supply - despite the fact that doing so would violate congressional statute. Electronic document properties have since revealed that the letter was drafted by an oil industry lobbyist, as reported by Bloomberg News. House from corn producing states such as Illinois, Kansas, Ohio and Missouri, among others, signed the letter.

Study Shows Farmers Return on Wheat Checkoff

U.S. wheat producers invested an average of $4.9 million in checkoff funds per year in promoting their milling wheat overseas between 2010 and 2014, and for every one of those dollars they received up to $45 back in increased net revenue. Study results released last week by U.S. Wheat Associates shows the return on investment for farmers. U.S. Wheat Associated commissioned the study with funding from the USDA Foreign Agricultural Service. Researcher, Dr. Harry Kaiser said “The econometric models we used showed that between 2010 and 2014 the total investment in wheat export promotion by farmers and the government increased total annual gross revenue by $2.0 billion to $3.0 billion.” For every $1 farmers and the government invested, the estimated return in gross revenue to the U.S. economy was between $112 and $179.

Japan Increasing Corn Purchases from Brazil, Ukraine

With prices roughly $10 per metric ton cheaper than U.S. supplies, Japanese corn buyers are set to increase purchases from Brazil and the Ukraine. Bloomberg reports Imports from the U.S. may drop 20 percent next quarter amid slowing Japanese demand, putting a drag on corn futures. Meanwhile, a Japanese source says purchases from Brazil, Ukraine and other non-U.S. exporters will expand about 20. The swing to Brazilian grains began after Chicago futures rallied to a one-year high in July amid concerns about wet weather, and accelerated as the Brazilian real tumbled to a record low against the dollar in September, making the nation’s produce more competitive in the global market. Overall corn demand is shrinking in Japan as high feed costs are forcing inefficient farmers to quit production, leading to a drop in the nation’s cattle herd, according to Bloomberg.

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