EPA Proposals on ESA Commitments Worry U.S. Soybean Farmers

Milei elected president of Argentina | Bayer woes continue | Dollar at 11-week low

Jim Wiesemeyer

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November 20, 2023 08:55 AM

Milei elected president of Argentina | Bayer woes continue | Dollar at 11-week low

Today’s Digital Newspaper

MARKET FOCUS

Shares of Microsoft gain after hiring Sam Altman & Greg Brockman, former OpenAI
Bayer shares tumble to a 12-year low after drug trial is stopped
Missouri jury ordered Bayer to pay $1.56 billion in damages related to Roundup
Sustainable funds losing capital
Fed-funds futures market pricing in four 25-basis-point cuts by end of 2024
Bloomberg dollar spot index has reached lowest point since August
Italian banks experiencing a surge in stock prices
50%: Approximate pay raise Americans said they would need to be happy
Credit crunch in U.S. office sector is escalating
Ag markets today
USDA daily export sale: 104,000 MT corn to Mexico during 2023-2024 marketing year
Brent crude futures increased to approximately $81 per barrel on Monday
Indonesia plans to introduce nickel tracing
UAW union announces 64% of workers at the Detroit Three automakers have voted to ratify new contracts
Worst appears to be behind North American railroad industry
Cocoa prices reach highest levels since 1978
India expected to maintain its curbs on overseas sales well into next year
NWS weather outlook
Pro Farmer First Thing Today items

ISRAEL/HAMAS CONFLICT

Conflict President Biden’s support for Israel to the test: WSJ
Seizure of Israeli-owned ship by Iran-backed rebels sparks concerns over shipping
Arab foreign ministers press China to support end to Israel-Hamas fighting

RUSSIA & UKRAINE

Zelenskyy shakes up military leadership for operational improvements

POLICY

EPA proposals on ESA commitments worry soybean farmers

PERSONNEL

Ron Klain, former chief of staff for President Biden, joining Airbnb

CHINA

People’s Bank of China (PBoC) maintained lending rates at November fixing
Taiwan’s export orders contracted at the slowest pace in more than a year
Era of undisputed U.S. submarine supremacy over China is coming to an end: WSJ
Chinese renewable energy project: more generating capacity than New Zealand
China’s sow herd declines for tenth consecutive month
EU: ramping up pressure on Beijing only way to tackle huge bilateral trade deficit
Why Xi tried to assure U.S. he has no plans for Taiwan invasion
Chinese, Saudi central banks sign currency swap worth $7 billion.

ENERGY & CLIMATE CHANGE

U.S. subsidies fuel boom in global auto trade
POET concerned Biden’s tax credit decision may force exit from SAF market

LIVESTOCK, NUTRITION & FOOD INDUSTRY

USDA begins reporting hogs raised in compliance with animal confinement legislation

POLITICS & ELECTIONS

Argentina elected Javier Milei, a libertarian political outsider, as president
Trump vows to kill Asia trade deal being pursued by Biden if elected

OTHER ITEMS OF NOTE

USDA launches 2023 irrigation and water management survey for selected irrigators

MARKET FOCUS

— Equities today: Asian and European markets were mixed in overnight trading. U.S. Dow opened slightly lower but then went slightly higher. Traders continue to assess the outlook for monetary policy, with FOMC minutes due tomorrow set to provide further clues on what the Fed will do next year. On the corporate front, shares of Microsoft gained about 1.7% in premarket trading after news that the company has hired Sam Altman and Greg Brockman, former OpenAI, to lead a new advanced AI research team. In Asia, Japan -0.6%. Hong Kong +1.9%. China +0.5%. India -0.2%. In Europe, at midday, London -0.2%. Paris +0.2%. Frankfurt -0.2%.

U.S. equities for the week and Friday: U.S. stock indices finished in positive territory Friday, notching gains for another week. The Dow was up 2%, The Nasdaq gained 2.5% and the S&P 500 rose 2.3%.

On Friday, the Dow was up 1.81 points, 0.01%, at 34,947.28. The Nasdaq gained 11.81 points, 0.08%, at 14,125.48. The S&P 500 was up 5.78 points, 0.13%, at 4,514.02.

— Bayer AG suffered its largest market value loss ever, amounting to approximately €7.6 billion ($8.3 billion). This decline follows significant legal setbacks and drug development challenges, putting pressure on the company’s new leader to devise a turnaround strategy. Five years after Bayer’s $63 billion acquisition of Monsanto Co., the negative impact of the deal continues to grow. Ongoing litigation related to Monsanto’s weedkiller Roundup poses a significant financial risk to Bayer, especially after a recent unfavorable jury verdict that may require Bayer to utilize all or even more than the $16 billion it has allocated for Roundup lawsuits. Simultaneously, Bayer is facing a crisis in its pharmaceutical division due to the suspension of a crucial study for its most important experimental drug due to efficacy concerns.

Shares fell as much as 21% in Frankfurt trading. As a result, Bayer’s market valuation has shrunk to approximately $37 billion, less than half of what it paid for Monsanto and allocated for legal issues stemming from the acquisition. Bill Anderson, who took over as CEO earlier this year, is now under increased pressure to consider breaking up the conglomerate, which includes pharma, agriculture, and consumer health divisions. Bayer’s Monsanto unit has recently faced multiple jury verdicts linking Roundup to cancer. While Bayer intends to appeal these verdicts and maintains the product’s safety, the legal risks may complicate any potential spin-off of the agriculture division.

— Following Sam Altman’s ouster from OpenAI on Friday, Microsoft said he and Greg Brockman, OpenAI’s president, were joining the company to lead a new advanced AI research team.

— $14 billion: The amount investors withdrew from sustainable funds this year, leaving them with $299 billion, according to Morningstar. Conventional funds also lost money, but the pain was more acute for climate funds. At least five funds announced they would drop their ESG mandates this year, while another 32 sustainable funds will close, according to data compiled by Morningstar and WSJ.

— Agriculture markets Friday:

Corn: March corn futures fell 8 cents to $4.85 1/4 and near the session low at Friday’s close. For the week, March corn rose 6 1/4 cents.
Soy complex: January soybeans fell 20 cents to $13.40 1/4 and gave up 7 1/2 cents on the week. December meal dropped $13.50 to $453.30 but gained $3.90 week-over-week. December soyoil rose 38 cents to 52.01 cents and gained 81 cents on the week.
Wheat: March SRW wheat futures fell 5 1/4 cents to $5.75 3/4, near the session low and hit a seven-week low. For the week, March SRW lost 23 1/2 cents. March HRW wheat futures dropped 8 1/2 cents to $6.27 1/2 and hit a 27-month low. For the week, March HRW fell 23 1/4 cents. March spring wheat futures ended the week at $7.31 3/4, down 8 3/4 cents on the day and 10 3/4 on the week.
Cotton: December cotton rose 24 points to 78.92 cents, while March futures rose 63 points to 81.51 cents, marking 160- and 201-point gains on the week, respectively.
Cattle: Cattle and feeder futures rebounded moderately from Thursday’s big losses. December live cattle climbed $1.00 to $175.75, which represented a $1.575 weekly advance. January feeder futures also rallied $1.00 to $228.50 at Friday’s close, marking a weekly rise of $2.075.
Hogs: Hog futures proved mixed Friday, with nearby December slipping 50 cents to $70.975, along with a February loss, whereas deferred futures posted modest gains. December hogs ended the week having declined 92.5 cents from last Friday.

— Ag markets today: Soybean futures firmed despite a gap lower on the overnight open, corn futures have pivoted near unchanged while wheat continued recent weakness. As of 7:30 a.m. ET, corn futures were steady to a penny lower, soybeans were 2 to 5 cents higher and wheat futures were 2 to 5 cents lower. Front-month crude oil futures were modestly firmer following reports of OPEC considering production cuts, and the U.S. dollar index was lower and trading on 11-week lows.

Neutral Cattle on Feed report. Last Friday’s Cattle on Feed Report showed the Nov. 1 feedlot inventory up 1.7% from year-ago, as placements rose 3.8% and marketings declined 2.5%. All three categories were close to the pre-report estimates, so there should be limited price impact.

Cash hog index continues to decline. The CME lean hog index is down 59 cents to $75.09 (as of Nov. 16), marking a new low in the seasonal decline. While the cash market has shown glimpses of an early seasonal low, pressure is still being felt as market-ready supplies build.

— Quotes of note:

The federal-funds futures market is pricing in four 25-basis-point (one-quarter percentage point) cuts by the end of 2024 in the wake of the latest CPI print, according to the CME FedWatch site. From the current target range of 5.25%-5.50%, the futures market prices discount the initial trim coming on May Day next year, with another at the end of July, followed by moves in mid-September and mid-December. This would be the seventh time since mid-2022 that the markets anticipated a “pivot” by the Fed toward lower short-term interest rates, according to a client note by Deutsche Bank macro strategist Henry Allen following the CPI report. “On the previous six occasions, those hopes have been dashed, since inflation has remained too fast for the Fed to be comfortable cutting rates,” he wrote.
50%: The approximate pay raise that Americans said they would need to be happy, according to a new survey of about 2,000 people by financial-services company Empower. But just how much happier a 50% raise would make any given person is hard to determine, researchers said. The reality: According to consulting firm Mercer, employers are planning on an average pay increase of 3.9% in 2024 for nonunion employees.
“This will be the go-to metals transition company in the world.” — Glencore Chief Executive Gary Nagle. Mining giant Glencore recently agreed to a multimillion-dollar deal that will eventually rid the company of its coal mines. The Wall Street Journal reports (link) the big strategic shift will allow Glencore to focus on bolstering its position as a major supplier of metals needed for electric-vehicle batteries and other green technologies.

— Credit crunch in the U.S. office sector is escalating, and by some measures, it’s even worse than during the 2008-09 global financial crisis. Moody’s Analytics reports that in the first nine months of 2023, only one out of every three securitized office mortgages that came due was paid off by the end of September. This represents the lowest repayment rate for the first nine months of any year since at least 2008. The primary cause behind this trend is that many office property owners are struggling to repay their existing loans because they are unable to secure new mortgages in the current economic environment, the Wall Street Journal reports (link).

Market perspectives:

— Outside markets: The U.S. dollar index fell, with the euro and British pound stronger against the greenback. The yield on the 10-year U.S. Treasury note was higher, trading around 4.48%, with a positive tone in global government bond yields. Crude oil futures were higher, with U.S. crude around $77.25 per barrel and Brent around $82.10 per barrel. Gold and silver futures were down ahead of US market action, with gold around $1,975 per troy ounce and silver around $23.48 per troy ounce.

— The Bloomberg dollar spot index has reached its lowest point since August, while Treasury yields are showing a slight increase in anticipation of a closely-watched 20-year bond auction. Investors are currently factoring in a roughly 30% probability of the Federal Reserve implementing its first rate cut as early as March. They are eagerly awaiting the release of the minutes from the Fed’s November decision, which may provide additional insights into the central bank’s future interest rate trajectory.

— Italian banks are experiencing a surge in their stock prices following Moody’s Investors Service’s decision to revise its outlook on Italy’s debt to stable. This action removes the immediate risk of Italy’s debt being downgraded to junk status, providing a positive development for the country’s financial stability.

— Brent crude futures increased to approximately $81 per barrel on Monday, building on gains from the previous session. This rise is due to investor anticipation of an upcoming OPEC+ meeting during the weekend, where the group is expected to consider deepening supply cuts to bolster oil prices. Crude prices surged by about 4% on Friday after OPEC+ stated that it was contemplating additional supply cuts at the November 26 meeting. Analysts also anticipate that Saudi Arabia and Russia may extend their voluntary cuts into early next year. However, oil prices are still down about 20% from their September highs due to indications of ample supplies and the diminishing war-risk premium linked to the Israel-Hamas conflict. Recent data shows a notable increase in crude oil inventories in the U.S., and Russia has recently lifted its ban on gasoline exports.

— Indonesia plans to introduce nickel tracing and push local producers to reach global mining standards to help the country move closer to securing a critical minerals deal with the U.S. Link to more via Bloomberg.

— United Auto Workers (UAW) union announced that 64% of workers at the Detroit Three automakers have voted to ratify new contracts. These votes come after strikes at General Motors (GM), Ford Motor, and Chrysler-parent Stellantis. The ratification of these contracts locks in the UAW’s tentative agreement with the automakers through April 2028. The agreements include a 25% increase in base wages and will ultimately raise the top wage by 33%, when compounded with estimated cost-of-living adjustments, to over $42 an hour.

— The worst appears to be behind the North American railroad industry as volume declines may make way for high-single-digit growth next year, according to a 2024 outlook from Bloomberg Intelligence.

— USDA daily export sale: 104,000 MT corn to Mexico during 2023-2024 marketing year.

— Cocoa prices have reached their highest levels since 1978 when Hershey Co. introduced Reese’s Pieces, according to Bloomberg. The delay in the start of the harvest season in Ivory Coast and Ghana, the world’s largest cocoa producers, compared to the previous season has raised concerns of a potential supply shortage, driving prices up. This surge in cocoa prices is benefiting Ecuador, Latin America’s largest cocoa producer, in its efforts to surpass Ghana and become the second-largest cocoa producer globally.

— India, the world’s top rice exporter, is expected to maintain its curbs on overseas sales well into next year, a move likely to hold the staple grain at close to its highest price levels since the food crisis of 2008. Link to more via Bloomberg.

— NWS weather outlook: Enhanced Risk of severe weather across the Deep South later today/tonight ahead of a low-pressure system... ...Locally heavy rain and possibly strong thunderstorms across the Mid-Mississippi Valley today and then across the interior Mid-Atlantic Tuesday into early Wednesday... ...High-elevation snows and lower elevation rain across the central and southern Rockies/High Plains expected to taper off tonight... ...Santa Ana winds develop over southern California during the next couple of days.

Items in Pro Farmer’s First Thing Today include:

• Beans firmer, wheat lower and corn caught in the middle overnight
• Brazil to likely receive helpful rains
• Brazil planting pace remains slow

ISRAEL/HAMAS CONFLICT

— Iranian-backed Houthi rebels, located in Yemen, have captured a cargo ship in the Red Sea and are holding 25 crew members as hostages. The rebels claim they seized the vessel due to its alleged connections to Israel, warning previously that they consider all Israeli ships as potential targets. However, Israel’s government asserts that the ship is British-owned and Japanese-operated. Although the ship’s owner is a company registered in Britain, it is reportedly owned by an Israeli billionaire. This incident highlights ongoing tensions and conflicts in the region involving different actors and their interests.

— Ongoing conflict between Israel and Hamas in Gaza is placing President Biden’s support for Israel to the test, the Wall Street Journal reports (link). Biden is facing difficulties in convincing Israeli Prime Minister Benjamin Netanyahu to adopt measures that U.S. officials believe could de-escalate the situation in Gaza. This strain in their relationship is significant given their historical alliance. While there have been points of agreement, such as Israeli commanders heeding American advice not to immediately enter Gaza, U.S. officials remain uneasy about Israel’s long-term intentions for Gaza and are alarmed by the high number of Palestinian casualties.

— Arab foreign ministers press China to support end to Israel-Hamas fighting. Wang Yi backs ‘immediate ceasefire’ as Beijing seeks to step up influence in Middle East. Link/paywall to details via the Financial Times.

RUSSIA/UKRAINE

— Zelenskyy shakes up military leadership for operational improvements. Volodymyr Zelenskyy, the President of Ukraine, has removed the commander of Ukraine’s medical forces and called for rapid improvements in the country’s military operations. Zelenskyy emphasized the necessity for a significant enhancement in the level of medical support for Ukrainian soldiers, prompted by allegations from paramedics that their leader, Tetiana Ostashchenko, failed to ensure an adequate supply of first-aid kits. These changes in leadership and medical support come at a challenging time, as Ukraine faces difficulties in its counter-offensive efforts against Russia.

POLICY UPDATE

— EPA proposals on ESA commitments worry soybean farmers. Proposals from the Environmental Protection Agency (EPA) regarding its commitments under the Endangered Species Act (ESA) related to pesticides have raised concerns among soybean farmers, according to the American Soybean Association (ASA). It says one of the proposals alone could potentially restrict or eliminate pesticide use on nearly 13 million acres of cropland, including over 5 million acres of soybeans. Link to ASA analysis.

The Vulnerable Species Pilot Project (VSPP) proposed by EPA aims to streamline the ESA compliance process for growers. However, this project would require extensive efforts to protect specific endangered species within predetermined areas to achieve ESA compliance, without waiting for individual species evaluations. The VSPP areas proposed by EPA are based on the ranges of 27 endangered species in the continental United States. EPA has indicated that additional species with larger ranges may be included in future pilot expansions.

Under the VSPP proposal, there would be “avoidance areas” covering over 20 million acres with strict pesticide application restrictions, requiring prior consent from the Fish and Wildlife Service months in advance. Additionally, there would be “mitigation areas” where pesticide bans would not be outright but would involve various hurdles for farmers to navigate to continue pesticide use.

The proposed mitigation measures vary depending on the species, region, and crop type, adding layers of complexity and cost. The financial impact on landowners and farmers in the program could be severe, with some areas potentially becoming unsuitable for agriculture due to the inability to use pesticides or the high cost of mitigations.

Impact: EPA’s broad approach to ESA compliance may result in the removal of hundreds of thousands to millions of acres of farmland from production, according to ASA analysis. The VSPP has not been finalized yet, and EPA has until Sept. 30, 2024, to determine if the proposal should be expanded. The ASA suggests that the EPA consider alternative measures that protect endangered species while also supporting the livelihoods of farmers and agricultural productivity.

PERSONNEL

— Ron Klain, the former chief of staff for President Biden, is joining Airbnb as the company’s chief legal officer. Klain’s move to the home-rental company comes several months after he left his position at the White House. With his extensive experience and connections in Washington, Klain is expected to contribute significantly to Airbnb’s operations. However, Klain’s appointment to Airbnb may also signal that he will not be part of President Biden’s re-election campaign, a possibility that had been speculated about in Democratic circles.

CHINA UPDATE

— China appears to be shifting away from further interest rate cuts as a means of supporting its economy and stabilizing credit growth as it approaches the new year. The country’s commercial banks on Monday maintained their benchmark lending rates, including the five-year loan prime rate used as a reference for mortgages. This aligns with expectations following the People’s Bank of China’s decision to hold the medium-term lending facility rate steady. China has previously implemented rate cuts to aid economic recovery, but constraints on the yuan, capital outflows, and narrowing bank profit margins have limited their effectiveness. Rising time deposits have also increased banks’ costs. Consequently, China is exploring alternative methods to boost liquidity and support lending.

The focus is shifting towards coordinating credit extension and providing credit support to specific sectors as a means of expanding domestic demand and boosting confidence. The People’s Bank of China has also taken other measures to support the economy, such as injecting liquidity into the financial system. This approach is seen as more effective than further interest rate cuts.

Of note: Chinese regulators are drafting a list of 50 developers eligible for a range of financing, the nation’s latest effort to put a floor under the property crisis.

— Era of undisputed U.S. submarine supremacy over China is coming to an end, the Wall Street Journal reports (link). China is closing a significant gap between the U.S. and Chinese military capabilities, particularly in submarine technology and undersea detection capabilities. These recent advancements underscore not only China’s progress but also a deficiency in the U.S. submarine fleet. The WSJ item discusses China’s advancements and their implications for the U.S. and its Pacific allies. This shift in submarine capabilities has raised concerns about the changing dynamics and strategic balance in the region.

— Taiwan export orders fall the least in 13 months. In October 2023, orders for Taiwanese exports declined by 4.6% compared to the previous year, reaching a total of $52.87 billion. This marked a significant improvement from the steep 15.6% drop observed in September and was slightly better than market expectations, which had predicted a 4.93% decline. It represents the smallest decrease in export orders since the ongoing contraction sequence began in September 2022.

— A Chinese firm has announced it will build a renewable energy project with more generating capacity than New Zealand in a vast inland desert province. Link to details via Bloomberg.

— China’s sow herd declines for tenth consecutive month. Data from the Chinese Ministry of Agriculture and Rural Affairs revealed that China’s sow herd has decreased to 42.1 million, down from 42.4 million in September, marking a tenth consecutive month of declines. However, state broadcaster CCTV indicated that the government still considers this level to be higher than necessary, as pork consumption has been lower than anticipated, and productivity has continued to rise. This situation has put pressure on hog prices in China, which are now 42% lower than they were a year ago.

The ministry has stated its intention to “stabilize” the situation and encourage a more reasonable level of production. However, specific details about the policy shifts that may be implemented to achieve this goal have not been provided.

— ‘We were not hard enough’: how past trade tensions inspired Brussels’ fresh China crackdown. EU believes ramping up pressure on Beijing is the only way to tackle huge bilateral trade deficit. Link/paywall to Financial Times article.

— Why Xi tried to assure U.S. he has no plans for Taiwan invasion. Chinese leader plays for stability while facing economic stress at home. Link to details via Nikkei Asia.

— Chinese, Saudi central banks sign currency swap worth $7 billion. China and Saudi Arabia have signed a local-currency swap agreement worth around $7 billion, deepening their ties as countries across the Middle East look to shift more of their non-oil trade away from the dollar. Link to more via Bloomberg.

ENERGY & CLIMATE CHANGE

— U.S. subsidies fuel boom in global auto trade. Global auto trade is experiencing a significant boost, particularly in auto exports from Europe and Asia, driven by generous subsidies for electric vehicles in the U.S. and other countries. Dealers are working to rebuild inventories that have yet to reach pre-pandemic levels. This surge in the auto industry stands in contrast to the overall weakness in exports due to a slowdown in the global economy. It highlights how the West’s adoption of industrial policies aimed at promoting domestic manufacturing and reducing reliance on fossil fuels is reshaping the dynamics of global trade patterns, the Wall Street Journal reports (link).

— POET concerned Biden’s tax credit decision may force exit from SAF market. POET, a biofuel maker, expressed concerns that the Biden administration’s decision on tax credits for sustainable aviation fuel (SAF) could lead them to withdraw from the SAF market. The company has received significant interest in developing low-carbon projects with airlines and fuel producers in the SAF market. However, the economic feasibility of these projects is heavily dependent on the value of the tax credits proposed by the White House.

Background. Biofuel advocates have been urging the administration to establish a model that favors corn-based ethanol as a feedstock for SAF credits. Without favorable tax credits, POET may find it economically unfeasible to continue operating in the SAF sector, and political support for a more sustainable SAF policy could diminish. The Biden administration is expected to provide guidance on the tax credits in December.

LIVESTOCK, NUTRITION & FOOD INDUSTRY

— USDA today begins reporting on number of hogs raised in compliance with animal confinement legislation (ACL), such as California’s Proposition 12, for the first time. Prop 12 requires that pork produced on farms outside California provides breeding sows with at least 24 square feet of floor space, the same as required within the state.

This new classification will be included in the National Weekly Direct Swine Non-Carcass Merit Premium report, according to the Agricultural Marketing Service (AMS). Until now, ACL-compliant hogs were categorized as “other,” which included hogs raised under various programs focusing on animal welfare, antibiotics, diet, genetics, meat quality, process verification, sow housing, and weight. The volume of ACL-compliant hogs under federal livestock reporting laws has grown large enough to warrant a separate listing, as per AMS.

USDA said this addition will provide valuable information to stakeholders in the pork industry, allowing them to make informed decisions related to ACL-compliant hogs. The National Pork Producers Council has been involved in advocating for this reporting and has stayed engaged with the USDA’s Agricultural Marketing Service throughout the process. California has set Jan. 1 as the compliance date for Prop 12.

POLITICS & ELECTIONS

— Javier Milei, a far-right libertarian often likened to Donald Trump, has been elected as Argentina’s next president in a significant rightward shift for the country. Milei, a 53-year-old economist and former TV personality with limited political experience, won with 56% of the vote, defeating center-left economy minister Sergio Massa, who conceded defeat before official results were released.

Milei’s platform includes promises to reduce spending and taxes, eliminate Argentina’s central bank, and replace the currency with the U.S. dollar. He has also advocated for banning abortion, loosening gun regulations, and aligning Argentina with countries opposing socialism, such as the United States and Israel.

Of note: While Milei’s victory aligns with the global far-right movement, some analysts suggest that many Argentines voted for him out of desperation for change rather than endorsing his far-right ideology. The Argentine economy presents a significant challenge for Milei, who has proposed radical reforms, including dollarizing the economy and cutting government spending.

Milei’s ascent has raised concerns about his potential impact on Argentina’s democracy due to his pre-emptive claims of voter fraud and downplaying of the atrocities committed during Argentina’s military dictatorship. He will be sworn in as president on Dec. 10, marking a significant shift in the country’s political landscape.

Trade policy impact: Milei has said he wants to withdraw from Mercosur. The EU wants to finalize its push to ratify its trade deal with the South American bloc over the next few weeks. Brussels is trying to get it done by Dec. 6, when Brazil hands over the presidency of Mercosur to Paraguay. As previously noted, Milei will be sworn in on Dec. 10.

— Former President Donald Trump received the endorsement of Texas Governor Greg Abbott during an event near the U.S./Mexico border, where the focus was on Trump’s plans to take a tough stance on immigration if he runs and wins the 2024 election. The event in Edinburg, Texas, included a visit with Texas National Guard soldiers, Texas Department of Public Safety troopers, and other service members stationed at the border. According to Reuters, Governor Abbott expressed concerns about President Biden’s border policies, stating that they pose a threat to communities across the United States. He credited Trump with reducing border crossings to the lowest levels in decades during his presidency. Abbott emphasized the need for a president who would prioritize border security and claimed that President Biden was facilitating terrorism by reversing certain Trump-era immigration policies, such as those related to deportations and asylum seekers waiting in Mexico for their hearings.

— Trump vows to kill Asia trade deal being pursued by Biden if elected. Donald Trump, the frontrunner for the Republican presidential nomination, said on Saturday that he would kill off a Pacific trade pact being advanced by U.S. President Joe Biden if he were to win the 2024 election and return to the White House. Link to more via Reuters.

OTHER ITEMS OF NOTE

— USDA launches 2023 irrigation and water management survey for selected irrigators nationwide. USDA’s National Agricultural Statistics Service (NASS) has initiated the 2023 Irrigation and Water Management Survey, sending survey codes to selected irrigators across all 50 states. These irrigators are invited to respond online to the survey, which is a special study linked to the 2022 Census of Agriculture. The survey aims to compile a comprehensive dataset on irrigation practices and water usage in American farms, ranches, and horticultural operations. The data collected from producers will support the USDA’s efforts to promote efficient irrigation methods and the long-term sustainability of water resources in the United States.

The survey will be distributed in phases, with paper questionnaires set to follow in January. Producers are only required to respond once, whether online or by mail, and the online option offers time-saving features designed to accommodate busy producers. The deadline for all responses is February 15, 2024.

NASS Administrator Hubert Hamer emphasized the critical importance of water in agricultural and horticultural operations and encouraged farmers of all sizes to complete and return their questionnaires. Responding to the survey is a legal requirement under Title 7 USC 2204(g) Public Law 105-113. The law also mandates that NASS keeps all information confidential, uses the data solely for statistical purposes, and publishes it in aggregate form to protect the anonymity of individual producers or farm operations.

The survey’s data will be released on Nov. 14, 2024, on the NASS website at www.nass.usda.gov. Producers can conveniently respond through the USDA NASS Online Respondent Portal at www.agcounts.usda.gov, which also provides access to other resources and historical reports.

KEY LINKS

Policy Updates