House Farm Bill Comes Under Several Attacks, Including from Sen. Stabenow

ECB cuts rates | Brazil places export tax on goods | HPAI confirmed in Iowa dairy herd | Human dies from HPAI in Mexico | U.S. trade deficit rises again

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June 06, 2024 08:59 AM

ECB cuts rates | Brazil places export tax on goods | HPAI confirmed in Iowa dairy herd | Human dies from HPAI in Mexico | U.S. trade deficit rises again

Today’s Digital Newspaper

MARKET FOCUS

ECB as expected cuts key lending rates… what’s next?
U.S. trade deficit widened to $74.6 billion in April 2024, largest since October 2022
Manufacturers still not meeting their stated lead times
Saudi Aramco lowered prices for all its oil to Asia next month
Ag markets today
USDA daily export sale: 152,000 MT corn to unknown destinations, 2023-2024 MY
Brazilian gov’t export tax on goods; notable impact on meal market
Ag trade update
NWS weather outlook
Pro Farmer First Thing Today items

RUSSIA & UKRAINE

Russia not expected to ban grain exports in emergency declaration
Ukraine maintains grain forecast for now despite unfavorable weather

POLICY

Stabenow takes shots at House farm bill commodity title
Others attack House farm bill
Texas farmers face rising costs as drought and heat intensify

PERSONNEL

Senate votes on FERC nominees set for next week

CHINA

China clears books on outstanding 2023-24 U.S. wheat sales; another buy for 2024-25
China denies using EV subsidies barred by WTO

LIVESTOCK, NUTRITION & FOOD INDUSTRY

HPAI confirmed in Iowa dairy herd
Germany confirms case of ASF
Colorado’s free school meals program faces budget shortfall, threatening rural benefits

HEALTH UPDATE

Human bird flu death confirmed in Mexico
NYU surgeons remove pig kidney from Lisa Pisano due to blood flow issues

OTHER ITEMS OF NOTE

USDA’s FGIS releases interim rule to increase inspection fees

MARKET FOCUS

— Equities today: Asian and European stock indexes were mixed to firmer overnight. U.S. Dow opened up slightly higher after an unexpected rise in weekly unemployment claims from the Labor Department. The Labor Department’s weekly unemployment claims unexpectedly rose to 229,000 vs. 219,000 in the previous week. They were expected to fall to 216,000. In Asia, Japan +0.6%. Hong Kong +0.3%. China -0.5%. India +0.9%. In Europe, at midday, London +0.4%. Paris +0.5%. Frankfurt +0.8%.

U.S. equities yesterday: All three major indices ended higher with the Nasdaq and S&P 500 both scoring new record finishes, the 13th for the Nasdaq and 25th for the S&P 500. The Dow ended up 96.04 points, 0.25%, at 38,807.33. The Nasdaq gained 330.86 points, 1.96%, at 17,187.90. The S&P 500 rose 62.69 points, 1.18%, at 5,354.03.

— Ag markets today: Corn and soybean futures were supported by corrective buying overnight, while wheat pivoted around unchanged. As of 7:30 a.m. ET, corn futures were trading 4 to 5 cents higher, soybeans were 6 to 7 cents higher, winter wheat markets were steady to a penny higher and spring wheat was 2 to 3 cents higher. The U.S. dollar index and front-month crude oil futures were both modestly higher this morning.

Beef rally halted. Wholesale beef prices posted sharp losses on Wednesday, with Choice down $2.09 and Select $3.57 lower, though movement remained solid at 115 loads. Traders will monitor the wholesale beef market closely to see if yesterday marked a seasonal top in prices, as demand typically fades after retailers have purchases secured for the “beef” holidays that conclude July 4.

Cash hog index climbs, pork slides. The CME lean hog index is up another 13 cents to $92.06 as of June 4. The premium in both June and July lean hog futures is virtually gone, with those contracts closing at $92.10 and $92.20, respectively, on Wednesday. The pork cutout value slipped 45 cents yesterday to $100.31 as all cuts except bellies declined. The cutout continues to show no signs of moving too far away from the $100.00 level.

— Agriculture markets yesterday:

Corn: July corn fell 3 1/4 cents to $4.39 1/4, closing near the session low.
Soy complex: July soybeans fell 1 3/4 cents to $11.77 1/4, nearer the session low and closed at a four-week-low close. July soybean meal closed up $4.40 at $359.50 and nearer the session low. July soybean oil lost 49 points at 43.13 cents, nearer the session low and hit a three-week low.
Wheat: July SRW wheat fell 11 1/2 cents to $6.46 3/4, while July HRW futures closed 11 cents lower at $6.76 1/4, each ending nearer the session low. July HRS futures ended 11 cents lower at $7.12 1/2.
Cotton: July cotton closed up 96 points at 74.44 cents today and near mid-range.
Cattle: Expiring June live cattle futures dipped 30 cents to $181.775, while most-active August fell 57.5 cents to $177.875. August feeder futures dropped $1.20 to $254.825.
Hogs: July lean hog futures plunged $1.725 to $92.20, while nearby June futures sank 60 cents to $92.10.

— Quotes of note:

“Manufacturers are still not meeting their stated lead times.” — An unnamed respondent in the ISM survey for service-sector activity in May, which showed supplier delivery performance reached its worst level since November 2022.
$3,250: Average price for a 40-foot high-cube sea container in China in May, up 45% from the April price, amid worsening shortages for boxes due to Red Sea vessel diversions, according to Container xChange.

— ECB cuts interest rates for first time in five years. The European Central Bank (ECB) reduced interest rates for the first time in nearly five years, cutting its benchmark deposit rate by a quarter percentage point to 3.75%. This decision comes amid the biggest price surge in a generation and ahead of similar actions by the U.S. and UK. The ECB’s rate-setting committee “is not pre-committing to a particular rate path,” the bank said.

ECB President Christine Lagarde stated the bank will continue a “data-dependent and meeting-by-meeting approach” to policy decisions.

Despite a recent slowdown in Eurozone inflation, May’s inflation rate unexpectedly rose to 2.6%, prompting the ECB to slightly raise its inflation forecasts for the coming years.

This rate cut follows similar actions by central banks in Canada, Brazil, Mexico, Chile, Switzerland, and Sweden. Conversely, the U.S. Federal Reserve and Bank of England are expected to maintain their current high rates.

Impacts: While this could boost Europe’s growth in the short term, the gap could also complicate the work of policymakers, especially in Europe.

— U.S. trade deficit widened to $74.6 billion in April 2024, the largest since October 2022, from a revised $68.6 billion in March, but below the forecasted $76.1 billion gap. Imports surged 8.7% to $338.2 billion, driven by passenger cars, computer accessories, telecommunications equipment, and crude oil, while transport imports declined. Exports rose slightly by 0.8% to $263.7 billion, mainly in pharmaceuticals, electric apparatus, and semiconductors, but fell for industrial supplies, travel, and financial services. The largest trade gap was with the European Union, increasing 11% to $22.5 billion, while the deficit with China narrowed 11% to $22 billion, and the gap with Mexico decreased by 5% to $12.8 billion.

Source: U.S. Department of Commerce and Wells Fargo Economics

Market perspectives:

— Outside markets: The U.S. dollar was weaker. with the euro only slightly higher against the greenback. The yield on the 10-year U.S. Treasury note was firmer, trading around 4.29%, with a mostly lower tone in global government bond yields. Crude oil futures were higher, with US crude around $74.90 per barrel and Brent around $79.20 per barrel. Gold and silver futures were firmer ahead of US market action, with gold around $2,377 per troy ounce and silver around $30.38 per troy ounce.

— Saudi Aramco lowered prices for all its oil to Asia next month, the first reduction since February, amid concerns over the strength of demand in its biggest market. Aramco will reduce the price of its flagship Arab Light crude by 50 cents to $2.40 a barrel above the regional benchmark, according to a pricing sheet seen by Bloomberg. The company had been expected to lower the official selling price by 40 cents, according to a survey. The OPEC+ decision coincided with a Saudi government offer to sell about $12 billion in Aramco shares.

— Brazilian government places export tax on goods, which has had a notable impact on the ag market. This move is part of a broader strategy to manage the country’s economic conditions and trade dynamics. The imposition of the export tax has contributed to market fluctuations, particularly in the soymeal market. Brazil is the second-largest exporter of soybean meal in the world after Argentina . Its main export destinations in 2022 were Indonesia, Thailand, Netherlands, Germany, and Vietnam

Yesterday’s rally in the meal market can be attributed to this new export tax, as traders and investors reacted to the potential implications for supply and pricing. The market this morning appears to be using the news of the export tax as a reason for short covering. Short covering occurs when traders who have previously sold short buy back their positions to cover their trades, often in response to new information that could affect market prices.

Brazil has been experiencing significant changes in its export patterns and economic conditions. For instance, Brazil’s trade surplus hit a record high in 2023, driven by strong exports of commodities like oil and soybeans. However, there have been fluctuations in different sectors, such as a decline in agricultural exports earlier this year. Additionally, the Brazilian government has been taking measures to support domestic industries, such as the auto sector, and reduce reliance on imports of high-tech and value-added products. These efforts are part of a broader push for re-industrialization and economic diversification under President Luiz Inácio Lula da Silva’s administration.

Details: The main products affected by the export tax in Brazil are primary and semi-finished products. This new tax, introduced as part of the Amendment to the Constitution No 132/2023, is intended to fund infrastructure and housing projects. The tax will be valid until Dec. 31, 2043, and marks a return to a scenario like the one before 1996, when state VAT was charged on exports of non-industrialized products. Primary and semi-finished products, as defined by Complementary Law No 65/1991, include raw materials and goods that have undergone initial processing but are not yet finished products. This tax could potentially impact a wide range of commodities and goods that fall under these categories, affecting their export dynamics and market prices.

The new export tax in Brazil is likely to have several impacts on the country’s trade surplus:

Increased costs for exporters: The imposition of the export tax, such as the 9.2% tax on crude oil exports, will increase the costs for Brazilian exporters. This could make Brazilian goods less competitive in the international market, potentially reducing the volume of exports.
Potential reduction in export volumes: Higher costs due to the export tax may lead to a decrease in the volume of exports. For instance, crude oil, which has historically been a significant export for Brazil, might see reduced demand if buyers turn to cheaper alternatives from other countries.
Impact on trade surplus: Brazil’s trade surplus has been bolstered by strong export performance, particularly in the agricultural and extractive sectors. However, the new export tax could dampen this performance by making Brazilian exports more expensive and less attractive to international buyers. This could lead to a narrower trade surplus if the reduction in export volumes is significant enough to outweigh any potential increases in export prices.

— USDA daily export sale: 152,000 MT corn to unknown destinations, 2023-2024 marketing year.

— Ag trade update: South Korea purchased 133,000 MT of corn, with 65,000 expected to be sourced from South America and 68,000 expected to be sourced from South America or South Africa. Japan purchased 103,767 MT of milling wheat via its weekly tender, including 31,600 MT U.S., 49,707 MT Canadian and 22,460 MT Australian. Japan is seeking 65,000 MT of feed wheat and 25,000 MT of feed barley. Tunisia tendered to buy 50,000 MT of soft milling wheat and 75,000 MT of feed barley — both optional origin.

— NWS weather outlook: Excessive Heat Warnings in effect across the California’s Central Valley and much of the Desert Southwest... ...Severe Thunderstorms and Excessive Rainfall possible over portions of the Central Plains and Middle Mississippi Valley on Friday.

Items in Pro Farmer’s First Thing Today include:

• Corn and beans firmer, wheat choppy overnight
• Argentine maritime unions strike

RUSSIA/UKRAINE

— Russia not expected to ban grain exports in emergency declaration. Russia will boost financial support to farmers but is not expected to ban grains exports if a federal emergency is declared due to frosts last month that damaged crops, industry sources told Reuters. “We don’t expect strict restrictions on exports, but reduction in our supply to the world market is quite possible. We will be less flexible on prices, recognizing the limitations of our supply,” said Eduard Zernin, head of Rusgain, an exporter group which regularly meets with the government to discuss their views on the state of the industry.

— Ukraine maintains grain forecast for now despite unfavorable weather. Ukraine maintained its grain production forecast of 52.4 MMT despite poor weather in May, acting Ag Minister Taras Vysotskiy said. Frosts in the first half of May and an ensuing drought in most regions of Ukraine created unfavorable conditions for all crops and may affect yields. The prolonged absence of rain across most of Ukraine caused a deterioration of crop conditions, but there has not been irreversible damage if timely rains develop the remainder of the growing season.

POLICY UPDATE

— Stabenow takes shots at House farm bill commodity title. Senate Ag Committee Chairwoman Debbie Stabenow (D-Mich.) expressed significant concerns regarding the House Agriculture Committee’s farm bill, particularly its provisions related to commodity programs.

During an online conversation with former Sen. Heidi Heitkamp (D-N.D.), Stabenow said the House bill would substantially increase payments for Southern producers, specifically those with cotton, rice, and peanut base acreage. She cites analysis from the University of Illinois and Ohio State that the proposal would essentially put the farm bill back to a system in place before the 2014 where “you get a government payment whether it’s a good time or a bad time.” Increasing reference prices by 70% would mainly benefit “big farmers” in the South, she said, citing estimates indicate these payments would more than double under the proposed legislation.

The House bill aims to bolster commodity programs by increasing reference prices and coverage levels, which would result in higher payments to farmers when market prices fall below these reference points. For instance, the reference price for corn would increase from $3.70 to $4.10 per bushel, soybeans from $8.40 to $10 per bushel, and wheat from $5.50 to $6.35 per bushel. These changes are intended to provide a stronger safety net for farmers but have raised concerns about the disproportionate benefits to certain crops and regions.

Stabenow’s criticism reflects broader opposition to the bill’s approach, which some argue favors wealthier farmers and specific commodities at the expense of other priorities, such as climate funding and food aid.

Senate Ag ranking member John Boozman (R-Ark.) intends to release a framework this month detailing Republican farm bill priorities, three Republican aides told Bloomberg Government. The framework proposes increase in reference prices and support for commodity crops, congressional aides, who spoke under condition of anonymity to discuss plans that aren’t public, said. The Republican Senate measure isn’t expected to include spending limits for the Commodity Credit Corporation proposed by the GOP-controlled House because of Democratic control over the Senate Budget Committee

As for what’s ahead, Stabenow said she is eyeing the lame duck session of Congress as the best chance. “I think if we decide we want something that brings the whole coalition together we can absolutely get this done,” Stabenow said. “Maybe not before the election, but we absolutely can get it done by the end of the year… “It could be before the election,” she added. If the package isn’t finalized this year, Stabenow said the 2018 Farm Bill has “served pretty well” and that “hopefully we can get that extended without a lot of trouble.”

House Ag Committee Chair GT Thompson (R-Pa.) told Politico that he is “not interested” in passing another extension of the 2018 Farm Bill. “And, quite frankly, Senator Stabenow should not be interested in an extension,” he said. “That just continues hardships on the American farmer.”

Upshot: The bill’s contentious nature and the divided government make its path to becoming law uncertain, with significant negotiations and potential revisions likely needed to achieve bipartisan support.

Comments: Stabenow is raising the crop and regional differences that some farm policy analysts say distort the push to get a new farm bill. One veteran farm bill observer emailed: “Which bill do you think real farmers with dirt on their hands will like better? The rest is just noise by Stabenow and her team (and, yes, U of I is an extension of her team).”

— Others attack House farm bill. The House Agriculture Committee is using questionable financial calculations to justify a significant increase in crop subsidy and crop insurance spending, according to analysts at a think tank discussion. Josh Sewell from Taxpayers for Common Sense criticized the committee’s methods, saying, “It makes voodoo economics look great.”

Nan Swift of the R Street Institute warned that the farm bill’s dubious finances might spark opposition from fiscal conservatives in the House, potentially blocking a floor vote. “They’ve created an enormous hurdle by being greedy,” she remarked.

The Republican-led committee passed the bill on May 24 with a 31-21 vote, including four Democratic votes. The bill proposes a $53 billion increase in crop subsidy and insurance spending, a $30 billion cut in SNAP funding, and the rejection of a Biden administration climate initiative. The plan claims to offset the increased spending by restricting USDA access to a $30 billion reserve fund, but the Congressional Budget Office estimates the savings at only $8 billion.

“You have one committee trying to … force CBO to make up math,” said Swift at an American Enterprise Institute (AEI) discussion. Vince Smith from AEI criticized the committee’s tactics, saying, “They should be ashamed.” (Link to video)

Dr. Joe Glauber, former USDA chief economist, noted that the reserve fund has traditionally been used for emergency aid but is now being treated as an annual entitlement, marking a significant shift in policy.

— Texas farmers face rising costs as drought and heat intensify. Texas farmers are facing rising expenses due to intensifying drought conditions, exacerbated by increasing temperatures. According to The Texas Tribune (link), a recent analysis of federal crop insurance data reveals that the financial costs of drought in Texas have surged significantly over the past decades. The Environmental Working Group’s (EWG) analysis, based on USDA data, shows that Texas leads the nation in crop insurance payouts due to drought, with these costs expected to rise further due to climate change. (EWG is a longtime critic of the federal crop insurance program.)

“Drought and heat are expected to get worse in Texas,” said Anne Schechinger, the author of the EWG analysis. “Climate change is going to increase costs for both taxpayers and farmers.”

Payouts for drought-related losses in Texas have escalated from an average of $251 million per year in the 2000s to $516 million per year in the 2010s, and now to $1.1 billion per year in the first four years of the 2020s. These rising costs reflect not only the losses suffered by farmers but also the publicly funded premium subsidies that keep them afloat during disasters.

The federal crop insurance program, which provides heavily subsidized coverage to American farmers, is under financial strain from increasingly severe weather. In 2022, the program’s most expensive year on record, it subsidized 62% of policyholder premiums at a cost of $12 billion.

Dr. Joe Glauber, a former chair of the federal crop insurance program, emphasized the need for reform to encourage adaptation to long-term changes in temperature and rainfall. “You don’t want crop insurance to insulate farmers from market signals,” Glauber stated. “You don’t want to encourage risky behavior. You don’t want to encourage growing crops on marginal land by virtue of the fact that you can insure it.”

In Texas, nearly 60% of crop insurance payouts to date have covered cotton, the state’s most widely cultivated crop. The state experienced severe droughts in 2011 and 2022, with the latter destroying 74% of the Texas cotton crop. This led to almost $3 billion in crop insurance payouts for Texas cotton farmers in 2022 alone. Brad Rippey, a meteorologist with USDA’s Office of the Chief Economist, noted that without crop insurance, the economic impact would have been disastrous.

“Even with crop insurance, the Texas Comptroller said the 2022 drought caused almost $8 billion in direct agricultural losses and nearly $17 billion in total losses,” the article reported. “Cotton farmers lost about $2.1 billion in total economic activity, not including the losses covered by crop insurance.”

Efforts are being made to adapt to these challenging conditions. Farmers are implementing practices to boost soil moisture retention and improve soil health, which can enhance crop resilience during droughts. Research at the University of Houston is exploring the use of algae additives and specific microbes to promote drought tolerance in crops.

“Poor soil health correlates to lower drought tolerance for crops that grow in it,” said Abdul Khan, a biotechnology researcher at the University of Houston. “This consortium of microorganisms is really helping with drought stress conditions. They are basically improving the defense mechanism of plants to reduce the drought stress impacts.”

PERSONNEL

— Senate votes on FERC nominees set for next week. The U.S. Senate will take up the nominations of David Rosner, Lindsay See, and Judy Chang to be members of the Federal Energy Regulatory Commission (FERC) on Tuesday. The trio were cleared by the Senate Energy and Natural Resources Committee on solid bipartisan votes and their full Senate confirmation is expected. If they are confirmed as expected, it will have FERC operating with all five commissioners in place.

CHINA UPDATE

— China clears books on outstanding 2023-24 U.S. wheat sales, makes another buy for 2024-25. USDA weekly export sales data for the week ended May 30 showed net reductions for wheat export sales to China for 2023-24 of 4,586 metric tons, when combined with exports of 366 metric tons, that puts their outstanding sales at zero for the marketing year that ends May 31. Sales activity of 60,478 metric tons of wheat was reported for 2024-25. Other activity for the week included net sales of 136,171 metric tons of corn, 3,154 metric tons of sorghum, net reductions of 742 metric tons of soybeans, and net sales of 71,691 running bales of upland cotton. Another 2,2,00 running bales of upland cotton sales for 2024-25 were reported. Net sales for 2024 of 509 metric tons of beef and 8,860 metric tons of pork were also reported.

— China denies using EV subsidies barred by WTO. China doesn’t use subsidies for electric vehicles that have been prohibited by the World Trade Organization (WTO), a spokesperson for its foreign ministry said. “China’s new energy products, including electric vehicles (EVs), are widely popular in the international market,” the spokesperson said. “They are the result of the combined effects of comparative advantages and market laws.” The comments came in response to remarks by President Joe Biden that China provides subsidies to flood the U.S. market with EVs, concerns echoed by other administration officials. Subsidies cannot make up for industrial competitiveness, the Chinese spokesperson said.

LIVESTOCK, NUTRITION & FOOD INDUSTRY

— HPAI confirmed in Iowa dairy herd. The Iowa Department of Agriculture and Land Stewardship said that the Animal and Plant Health Inspection Service (APHIS) has detected a case of highly pathogenic avian influenza (HPAI) in a dairy herd in O’Brien County, the first reported case in the state.

It would mark the tenth U.S. state where HPAI has been found in dairy cows.

USDA has now confirmed more than 80 cases of HPAI in dairy since March.

Iowa ag secretary comments. “Poultry producers and dairy farmers should immediately take steps to harden their biosecurity defenses, limit unnecessary visitors and report symptomatic birds or cattle to the Department (of Agriculture and Land Stewardship),” Mike Naig, the state’s agriculture secretary, said Wednesday. Naig said unspecified “additional response steps” are forthcoming from the department.

Iowa has about 850 dairy farms that range in size from 25 to 10,000 cows. A typical dairy has about 250.

The state agency also said that genomic sequencing of the virus found at a Sioux County, Iowa, mega flock of layer hens was “consistent with the variant identified in affected dairies in other states.” The case involved 4,287,400 commercial table egg layer birds.

The state agency also said that the genomic sequencing on the HPAI strain at a Cherokee County, turkey flock (100,000 birds) or the O’Brien County dairy herd has not yet been completed and officials said they are trying to determine how the virus reached the flocks and the dairy herd.

— Germany confirms case of ASF. A case of African swine fever (ASF) has been confirmed on a pig breeding farm in Greifswald in the eastern state of Mecklenburg-Vorpommern, the state’s ag ministry said. China and other countries banned imports of German pork in 2020 after an ASF outbreak in the country. China’s import ban remains in place.

— Colorado’s free school meals program faces budget shortfall, threatening rural benefits. The “Healthy School Meals for All” (HSMA) program in Colorado, which provides free breakfast and lunch to every K-12 student, is facing a budget shortfall that could end benefits for rural schools, children, and food producers, according to The Daily Yonder (link). A 2023 Feeding America study highlighted that 9 out of 10 food-insecure counties in the U.S. are rural. In Montezuma County, 57% of students qualified for free or reduced lunch in 2022.

Established by Proposition FF in 2022, HSMA funds these meals through a tax on earners above $300,000 a year. The initiative has helped families manage budgets, saving them about $1,250 per child annually. However, the program’s success led to a higher-than-expected participation rate, resulting in a $24 million deficit this year, projected to rise to $50 million next year.

Without additional funding, the program may end after the 2025 school year. Efforts are being made to secure funding through a new bill in the next legislative session. Meanwhile, schools will utilize the Community Eligibility Provision (CEP) program, which funds free meals for all students in low-income areas.

The HSMA also aims to support local food sourcing and increase cafeteria worker wages. Programs like the Local Food Program Pilot have enabled schools to source local products, benefiting both students and local economies.

HEALTH UPDATE

— Human bird flu death confirmed in Mexico. The World Health Organization (WHO) has confirmed the first human death from the H5N2 strain of highly pathogenic avian influenza (HPAI) in Mexico. The deceased was a 59-year-old man who passed away on April 24, 2024. This case marks the first time the H5N2 strain has been detected in a human globally and the first instance of an H5 virus infecting a person in Mexico.

Symptoms and health condition: The individual experienced fever, shortness of breath, diarrhea, nausea, and general malaise. He had multiple underlying health conditions, including chronic kidney disease and type 2 diabetes, and had been bedridden for three weeks prior to the onset of acute symptoms.
Source of infection: The source of the man’s exposure to the virus remains unknown. He had no known contact with poultry or other animals, although H5N2 has been reported in poultry populations in Mexico.
Public health risk: WHO has stated that the current risk to the general population from this virus is low. There is no evidence of person-to-person transmission in this case, and all individuals who had contact with the deceased have tested negative for the virus.

Context and Comparison:

H5N2 vs. H5N1: The H5N2 strain involved in this case is different from the H5N1 strain currently affecting dairy herds in the United States, which has also led to human infections. The H5N1 strain has been confirmed in three dairy farm workers in the U.S., who developed mild symptoms, primarily eye infections.
Surveillance and preparedness: The WHO emphasizes the importance of continued surveillance and preparedness to monitor and respond to zoonotic influenza threats. Scientists are particularly vigilant for any signs that the virus is adapting to spread more easily among humans.

Bottom line: Observers say the death of the 59-year-old man in Mexico from the H5N2 strain of bird flu underscores the need for ongoing vigilance and monitoring of avian influenza viruses. While the immediate risk to the general population is considered low, the situation highlights the potential for avian influenza viruses to infect humans.

— NYU surgeons remove pig kidney from Lisa Pisano due to blood flow issues less than two months post-transplant. Surgeons at NYU Langone removed a pig kidney from Lisa Pisano, a 54-year-old woman with kidney failure, less than two months after the transplant due to inadequate blood flow. Pisano, who also required a mechanical heart pump, had the transplant on April 12 following a heart pump implant on April 4. Despite no signs of organ rejection, the kidney’s function declined due to insufficient blood flow caused by the heart pump issues. Link to details via Wired.

The kidney came from a genetically engineered pig by Revivicor to prevent immediate rejection. The team removed the kidney on May 29, with Pisano now back on dialysis. Her medical team praised her as a pioneer in the effort to find sustainable organ transplant options. Pisano was the second living person to receive a pig kidney; the first, Richard Slayman, died two months post-transplant, though not due to the kidney itself. This research aims to address the global organ donor shortage by using genetically edited pig organs to reduce immune system rejection.

OTHER ITEMS OF NOTE

— USDA’s Federal Grain Inspection Service (FGIS) has released an interim rule (link) to increase inspection fees for official inspection and weighing services under the U.S. Grain Standards Act (USGSA). Effective July 8, this rule aims to help FGIS operate with the required 3 to 6 months of operating reserves. The new fees, modeled after other AMS user-fee grading programs, address FGIS’s recent financial losses partly due to limits on annual fee adjustments. The 2023 fees were lower than those in 2016. Without this increase, FGIS warned it would be unable to provide mandatory services for the grain industry. While stakeholders cautioned against significant fee hikes, they recognized the importance of FGIS’s role. The new fees reflect FGIS’s actual costs and the necessity to rebuild its operating reserve.

KEY LINKS

Policy Updates