Sizing Up 45Z Program for Farmers | Vilsack on Carbon Intensity Guidelines

News/Markets/Policy Updates: Jan. 16, 2025

Other topics in this dispatch include: (1) House GOP wants Trump team to delay Biden-era rollbacks; (2) Scott Bessent’s Treasury nomination hearing today; (3) What EPA administrator nominee Lee Zeldin will tell hearing today; (4) What Doug Burgum, Trump’s Interior nominee, will say at confirmation hearing; (5) Netanyahu and Hamas dispute ceasefire terms; (6) John Deere responds to FTC lawsuit; (7) USDA partially resumes CRP activity; (8) Stricter rules for carbon dioxide pipelines; (9) Bloomberg interview USTR Tai; (10) Rival exporters accuse Canada of dumping dairy products.

— Equities today: Asian and European stock markets were mixed to firmer overnight. U.S. Dow opened flat to slightly higher. In Asia, Japan +0.3%. Hong Kong +1.2%. China +0.3%. India +0.4%. In Europe, at midday, London +0.7%. Paris +2%. Frankfurt flat.

Equities yesterday: All three major indices scored solid gains in the wake of the CPI update and on a decline on bond yields. The Dow finished up 703.27 points, 1.65%, at 43,221.55. The Nasdaq rose 466.84 points, 2.45%, at 38,444.58. The S&P 500 gained 107.00 points, 1.83%, at 5,949.91. The closing bell concluded a rally that has helped all three major stock indices recover losses and post overall gains since the start of 2025.

— Bank of America tops estimates on better-than-expected investment banking, interest income. Earnings: 82 cents vs. expected 77 cents LSEG estimate; Revenue: $25.5 billion vs. expected $25.19 billion.

— Target raises Q4 sales outlook amid holiday gains. Target revised its fourth-quarter sales outlook, now expecting comparable sales to grow by about 1.5%, up from its prior forecast of flat growth. This adjustment reflects a stronger-than-anticipated holiday season. However, the retailer kept its profit outlook unchanged, signaling that heavy discounts during Black Friday and Cyber Monday drove the sales boost. Despite the improved outlook, investor response has been muted.

— John Deere responds to FTC lawsuit; defends innovation and repair practices. On Wednesday (Jan. 15), John Deere issued a statement addressing charges brought by the Federal Trade Commission (FTC) and the attorneys general of Illinois and Minnesota. The FTC sued John Deere, claiming the tractor maker illegally forced farmers to rely only on authorized dealers for repairs, padding its profits. “Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” said FTC Chair Lina Khan in a statement. The FTC commission voted 3-2 to bring the lawsuit with both Republicans voting against it, including Andrew Ferguson, President-elect Donald Trump’s pick to lead the commission. The company strongly refuted the allegations, describing the lawsuit as baseless and legally flawed. Key points from John Deere’s response include:

• Commitment to repair access: John Deere emphasized its long-standing dedication to customer self-repair, noting its history of publishing manuals, selling parts directly, and providing digital tools like Customer Service ADVISOR.
• Defense of innovation: The company stated that the lawsuit “punishes innovation and procompetitive product design.”
• Settlement efforts: John Deere disclosed ongoing settlement negotiations with the FTC prior to the lawsuit and criticized the agency for relying on “inaccurate information and assumptions.”
• Recent initiatives: Highlights included the launch of Equipment Mobile in 2023, upcoming upgrades to the John Deere Operations Center, and a pilot program to enhance farmers’ repair options.

John Deere pledged to “vigorously defend itself” and criticized the lawsuit for ignoring its progress and commitment to empowering customers. The company’s Vice President, Denver Caldwell, asserted that the FTC lacked an accurate understanding of the industry and John Deere’s practices.

— BOJ considers January rate hike amid cautious optimism. The Bank of Japan (BOJ) is eyeing a potential interest rate hike next week, contingent on the absence of disruptive surprises from Donald Trump’s return to the White House, according to insider sources cited by Bloomberg. BOJ officials are leaning toward raising rates from the current 0.25% during their Jan. 24 meeting, provided economic data and global market conditions align. The yen strengthened against the dollar, reaching its highest level in a month at 155.21 per dollar, before settling slightly lower. Economic indicators suggest inflation and wage growth trends are on track, bolstering confidence in achieving the BOJ’s 2% inflation target. However, officials remain cautious, watching for potential shifts in U.S. economic policies under the new administration. Market expectations for a hike surged to 80% following the latest developments.

— Decline in Chinese government bond yields highlights flight to safety. The Chinese 10-year government bond yield fell to 1.65%, reflecting strong demand for safe-haven assets as investors seek to mitigate risks amid economic and financial uncertainties. Key drivers of this trend include:

1. Currency weakness: The yuan’s depreciation, crossing the 7.3 mark against the US dollar, is prompting a shift toward value-preserving assets.

2. Struggling equity markets: Chinese stocks entered a bear market, with indices like the MSCI China Index down 20% since late 2024 and the CSI 300 Index declining over 5% in early 2025.

3. Real estate woes: Property market challenges persist, with prices falling 12% since 2021 and weakened consumer confidence due to significant household exposure to real estate.

4. Shift to safe-haven assets:
Government Bonds: Yields have dropped to historic lows as bond demand surges.
Gold: Prices climbed 28% in 2024, marking it as China’s best-performing asset.
Outlook: While investors favor safety, ongoing efforts by Chinese policymakers to stabilize the economy may influence future sentiment.

— Ag markets today:

Grains face pressure overnight. Grain markets traded lower overnight, led by double-digit losses in soybeans. As of 7:30 a.m. ET, corn futures were trading 3 to 5 cents lower, soybeans were 11 to 14 cents lower and wheat futures were 4 to 9 cents lower. The U.S. dollar index was around $1.75 higher, and front-month crude oil futures were about 75 cents lower.

Cash cattle have traded at mostly steady prices so far this week. While that signals the eight-week string of cash gains may be stalling, feedlots are current on marketings and won’t likely be willing sellers at prices less than recent levels.

Cash hog index rises again. The CME lean hog index is up 11 cents to $81.10 as of Jan. 14, the third straight daily increase. The pork cutout rose 62 cents on Wednesday to $90.83 as gains in ribs, hams, picnics and bellies more than offset losses in loins and butts.

— Ag trade: Japan purchased 132,888 MT of milling wheat via its weekly tender, including 48,308 MT U.S., 56,520 MT Canadian and 28,060 MT Australian.

— USDA daily export sales:

• 132,000 MT soybeans to China during 2024-25 marketing year
• 135,000 MT of corn to Taiwan, 2024-25 marketing year

— Sales of U.S. soybeans, cotton, and beef mark weekly export sales activity to China. USDA weekly Export Sales data for the week ended Jan. 9 included sales activity to China for 2024-25 including net sales of 213,890 metric tons of soybeans and 18,690 running bales of upland cotton. No activity for corn, wheat, and sorghum was reported. For 2025, USDA reported net sales of 3,470 metric tons of beef and 295 metric tons of pork.

— Agriculture markets yesterday:
• Corn: March corn rallied 4 1/4 cents to $4.78 3/4 and marked a seven-month high close.
• Soy complex: March soybeans fell 4 3/4 cents to $10.42 3/4, nearer the daily low. March soybean meal fell $3.80 to $302.00, near the session low. March soybean oil rose 5 points to 46.27 cents, near mid-range and hit a two-month high early on.
• Wheat: March SRW wheat rose 3/4 cent to $5.47, forging a mid-range close, while March HRW fell 3 1/4 cents to $5.57 1/2, closing nearer the session low.
• Cotton: March cotton rose 27 points to 67.77 cents and nearer the daily high.
• Cattle: Nearby February live cattle rose $1.125 to $198.525, while most-active March feeder futures climbed $1.60 to $269.80. Expiring January feeder futures rallied $1.125 to $275.225.
• Hogs: February lean hog futures closed 50 cents lower to $83.125 and nearer session lows.

— Exchange cuts Argentine corn crop estimate, warns soybean crop will be reduced. The Rosario Grain Exchange cut its Argentine corn production forecast to 48 MMT from a previous range of 50 MMT to 51 MMT due to drought impacts. The exchange also said soybean production would be below its forecast range of 53 MMT to 53.5 MMT, without providing a new estimate, noting hot and dry conditions ruled out “the high productivity scenarios that were considered until recently.”

— Argentine government accused of skewing auction to upgrade Parana River. President Javier Milei’s administration started a tender process in November for a 30-year contract to keep bulk carriers sailing up and down the Parana River. Dredging companies have been waiting to bid on a new contract after the last one expired in 2021. They have until Feb. 12 to apply. But the tender process is coming under fierce criticism, including from two suitors that accuse Argentina’s government of favoring the current contractor. DEME of Belgium and Rohde Nielsen A/S from Denmark allege the terms of the auction suit rival Jan de Nul NV to such an extent that it’s almost impossible for anyone else to compete. The bidding process is also being criticized by Argentine congressmen and shipping and port authorities.

— Soyoil supplanting palm oil in India’s imports. India’s palm oil imports are set to plunge to a near five-year low in January amid negative refining margins as its premium drives buyers to more competitively priced soyoil, government and industry officials told Reuters. Two vegoil brokers and a shipping company that compiles data on vessels lined up to unload at ports estimated that imports could range between 340,000 MT and 370,000 MT this month, which would be the lowest monthly total since March 2020. Soyoil, which traditionally commands a premium over palm oil, is now offered at a discount. India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.

— Philippines sees no need to hike rice imports. The Philippines sees no need to increase rice imports for now although there are concerns about the prices businesses are charging consumers for the national staple, the agriculture minister said. Instead, he said the government would consider a recommendation from the national price council to declare a “food emergency” and release buffer stocks to help bring down retail prices. The state-run National Food Authority, which manages the country’s grain supply, could start selling its 300,000 MT of rice stocks in February. The Philippines is expecting to import around 4.3 MMT to 4.5 MMT of rice this year, lower than 4.7 MMT in 2024.

— USDA partially resumes CRP activity. USDA announced the resumption of work on Conservation Reserve Program (CRP) contracts signed before Oct. 1, 2024, which expand acreage under the program. These activities had been suspended following the expiration of the 2018 Farm Bill on Sept. 30. However, other CRP activities, including the continuous signup, remain on hold. The Farm Service Agency (FSA) has indicated these will restart under the one-year extension of the 2018 Farm Bill enacted in December.

— Oil prices surge amid market tightness and geopolitical developments. Oil prices surged on Wednesday, with Brent crude climbing 2.64% to $82.03 per barrel — its highest since August — and U.S. WTI up 3.28% to $80.04, reaching levels last seen in July. The rally followed a significant drop in U.S. crude inventories to their lowest since 2022 due to increased exports and reduced imports. New U.S. sanctions on Russian oil amplified supply concerns, compounded by difficulties offloading Russian crude. The market reacted to a ceasefire agreement between Israel and Hamas, which eased some geopolitical risks, partially tempering gains. Additional drivers included a weaker U.S. dollar, boosting oil prices, and optimism about potential Federal Reserve rate cuts. OPEC maintained its global oil demand growth forecast at 1.43 million barrels per day for 2026, consistent with its 2025 projection.

— Vilsack comments on carbon intensity (CI) guidelines re: 45Z changes. USDA Secretary Tom Vilsack said preliminary CI calculations show that farmers under the USDA rule have the potential to get carbon intensity scores per bushel significantly lower, including down about 70% for corn grown in a part of Illinois and about 90% for sorghum in an area of Kansas.The new guidance allows farmers to use climate-smart practices individually or in combination, unlike prior rules around the now expired “40B” tax credit for production of sustainable aviation fuel, which involved bundling specific practices. Such bundling proved impractical in certain regions. The new guidelines also add sorghum to the list of crops, rather than only corn and soybeans as part of a test program last year. Sorghum is one of the world’s top five cereal crops and the U.S. is the world’s largest producer of grain sorghum.

— Paul Neiffer of Farm CPA Report explains the implications of new USDA guidance on carbon intensity (CI) scoring practices and their impact on biofuel tax credits under Section 45Z (link). While biofuel producers directly benefit from these credits, farmers can only participate through direct payments for low-carbon crops.

USDA’s new calculator allows farmers to estimate CO2 reduction based on practices like reduced tillage, no-till tillage, cover crops, and enhanced nitrogen practices. By inputting their state, county, and chosen practices, farmers can determine potential CO2 reductions, which translate into tax credits for biofuel producers.

For example, according to Neiffer:

• A no-till practice reducing CO2 by 1,900 results in 52 cents per gallon in credits for biofuel producers (calculated as CO2 reduction ÷ 219.78 × 6 cents).
• If manufacturing sustainable aviation fuel (SAF), the credit increases by 75%.

However, several uncertainties remain:

• County-specific carbon baselines and adjustments.
• Yield variations and their impact on credit calculations.
• Fertilizer usage and types, which are currently unaccounted for.

Challenges also include the timeline for implementing practices (e.g., cover crops for the 2025 crop year needed planting in 2024) and administrative costs, which could consume up to a third of the potential credit.

Neiffer highlights a regional analysis, showing no-till tillage as the most beneficial practice in terms of credit per bushel, followed by cover crops. Farmers may ultimately receive only a fraction of the biofuel producers’ credit, but this initiative is an essential step toward integrating carbon-smart practices into farming.

(Paul Neiffer, Farm CPA Report )

This score is important for determining the amount of tax credit a biofuel producer can receive under Section 45Z. However, it’s essential to note that the biofuel producer, not the farmer, directly receives the credit. The farmer’s participation is limited to receiving direct payments from the biofuel producer for providing low-carbon crops.

USDA also launched a calculator that estimates CO2 reduction in corn, soybeans, and sorghum production by county. The practices evaluated in the calculator include reduced tillage, no-till tillage, cover crops, and enhanced nitrogen practices. Farmers can input their state, county, and practice type to calculate CO2 reductions, which biofuel producers can use to estimate potential credits.

To calculate the possible credit, the CO2 reduction is divided by 219.78 and multiplied by 6. For example, a CO2 reduction of 1,900 kilograms from no-till tillage results in a potential credit of about 52 cents per gallon for the biofuel producer. The credit would be higher if the biofuel is Sustainable Aviation Fuel (SAF), with a 75% boost.

However, several uncertainties remain, such as whether reductions in carbon per bushel vary by county, and how factors like fertilizer application and yield adjustments will affect the final score. The calculator currently doesn’t address these variables, leaving some calculations open to interpretation.

Neiffer says this is a positive first step, but there’s still a long way to go before farmers can fully understand the value of their crops in the Section 45Z program. Moreover, new administration policies could alter or eliminate the credit entirely. Many practices for the 2025 crop year are already too late to implement, so the full impact of this credit will likely be seen in 2026, if at all, he concludes.

— Biden administration proposes stricter rules for carbon dioxide pipelines. The Department of Transportation announced proposed rules aimed at enhancing the safety of carbon dioxide pipelines. These guidelines cover the design, installation, operation, maintenance, and reporting standards for transporting carbon dioxide in a gaseous state. This initiative follows a 2020 pipeline rupture in Satartia, Mississippi, which hospitalized 45 people and forced the evacuation of 200 residents.

With the Pipeline and Hazardous Materials Safety Administration (PHMSA) projecting a tenfold increase in CO₂ pipeline mileage by 2050 from the current 5,000 miles, the regulations are designed to address growing safety concerns. The proposal, which will undergo a 60-day public comment period once published in the Federal Register, is expected to be finalized under the Trump administration.

— Fed Beige Book highlights economic growth amid tariff mentions. The Federal Reserve’s Beige Book noted an uptick in mentions of tariffs as President-elect Donald Trump’s inauguration approaches. Economic activity grew “slightly to moderately” across the United States in late November and December, driven by strong holiday sales, according to the Fed’s survey of regional business contacts.

(Fed Beige Book, Bloomberg )

— Canada prepares tariffs in anticipation of Trump trade moves. Canada is drafting a C$150 billion ($105 billion) tariff list on U.S. products to retaliate if President-elect Donald Trump imposes tariffs on Canadian goods. This pre-emptive strategy was discussed during a meeting between Prime Minister Justin Trudeau and Canada’s provincial premiers, where most leaders agreed to a united approach against US protectionism.

However, Alberta Premier Danielle Smith opposed curbs on energy exports, a key sector for the province. Ontario Premier Doug Ford emphasized national unity, asserting that Trump’s economic threats target all Canadians, not specific regions.

Canada’s significant trade relationship with the U.S. — totaling C$487 billion in imports annually — places high stakes on the outcome of this escalating trade tension. Trudeau underlined the importance of energy partnerships, suggesting that Canada remains a better alternative than China for critical minerals.

Internal divisions among Canada’s provinces, particularly on energy policy, may challenge the country’s ability to present a cohesive response. Ford captured the prevailing sentiment with his bold statement: “Canada is not for sale.”

(StatsCanada, Bloomberg)

(Angus Reid Institute, Bloomberg)

— Rival exporters accuse Canada of dumping dairy products. New Zealand, Australian, and U.S. dairy groups have accused Canada of underpricing its milk products and dumping them on global markets. These groups claim Canada’s milk pricing mechanisms incentivize surplus disposal at artificially low prices, undermining international markets.

In 2023, Canada exported nearly C$500 ($348.45 million) in dairy products, mainly to the U.S., while a paper in Ecological Economics highlighted 7 billion liters (approximately 1.849 billion gallons) of wasted milk since 2012. New Zealand has initiated trade negotiations with Canada under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), while all three nations urge their governments to hold Canada accountable for its trade practices under WTO and regional agreements.

Global milk production is expected to rise in 2025, intensifying competition and trade disputes, with Canadian policies drawing sharp criticism from rivals who advocate for coordinated international action.

— USTR Tai warns Trump not to rely on tariffs for revenue. Katherine Tai, President Joe Biden’s outgoing U.S. Trade Representative (USTR), cautioned President-elect Donald Trump against relying on tariffs as a primary revenue source, calling the idea “very, very dangerous.” In a Bloomberg interview, Tai argued that tariffs used to replace income taxes would disproportionately burden lower-income Americans, a practice reminiscent of the Gilded Age. While tariffs can incentivize companies to reshore critical manufacturing, Tai emphasized they should not fund the government. Trump recently proposed creating an “External Revenue Service” to collect tariffs, aiming to offset income taxes.

Tai defended the Biden administration’s strategic use of tariffs to support industrial policy, rejecting claims that tariffs significantly drive inflation. Instead, she cited supply shocks, like the shipping disruptions of 2022, as the main contributors to rising prices. Under Biden, many of Trump’s trade policies, including tariffs on Chinese goods and tech-related imports, were maintained or expanded.

Reflecting on her tenure, Tai underscored the need to “reimagine globalization” and make trade policy more responsive to domestic economic challenges. She also expressed regret over unfulfilled ambitions in U.S./EU trade relations and highlighted opportunities to modernize the US-Mexico-Canada Agreement to enhance supply chain resilience.

Tai’s tenure, marked by a focus on labor and industrial policy, signals continuity in addressing global trade distortions. She expressed hope for collaboration with allies under the Trump administration’s incoming trade leadership.

A few excerpts from Bloomberg’s conversation on Tuesday:

• Her own report card. “I feel tremendously proud of the contributions we have already made to the project of re-imagining globalization and reforming our institutions and changing the way people talk about trade.”
• On tariffs: “In terms of the role of tariffs in trade and the economy, we have to have a more nuanced conversation about this. Tariffs are a tool. It’s how you wield that tool and what you’re trying to accomplish with that tool that matters. If we can get people to climb off of their reactive stances where they say ‘Tariffs are always good’ because they feel good when you talk about tariffs or ‘Tariffs are always bad’ because of too simplistic logic that tariffs increase costs, then that’s a good evolution.”
• Tai connected her tenure to those of her Republican predecessor Robert Lighthizer and Trump’s choice to follow her, Jamieson Greer, saying all three share a recognition of distortions in global trade, and that she hopes the Trump administration will work with allies to address them.
• On disputes with the European Union over large civil aircraft, steel and aluminum: “I wish that we had been able to do more and that we had been able to move faster. That said, we’ll take the progress that we made. Looking forward, whether or not we get the rest of the way is really going to be up to not just my successor, but really up to Europe.”
• On issues in the upcoming U.S.-Mexico-Canada Agreement review, since it took effect in mid-2020, the automotive industry “is under acute pressure from competition from China that’s been based on a kind of monopolistic industrial policy. That is top of mind for many people, but I would just caution that that’s not the only one. For our three economies, the more comprehensive and holistic this conversation around our industrial supply chains can be in these next years, the better off we’ll find ourselves.”

— House GOP debates costs and offsets for extending 2017 tax cuts. House Republicans are deliberating the tax component of their reconciliation plans, focusing on the costs of extending the 2017 Trump tax cuts and potential offsets. Concerns were raised about how reduced tax revenue would impact the budget. Rep. Ryan Zinke (R-Mont.) emphasized the need to address funding gaps from lower taxes, while Rep. Ralph Norman (R-S.C.) stressed the importance of agreeing on a topline number before finalizing the resolution. A follow-up meeting is planned for next week.

— Contentious confirmation hearing highlights Vought’s stance on impoundment. Russell Vought’s confirmation hearing Wednesday for the position of Director of the Office of Management and Budget (OMB) spotlighted heated debates over his approach to federal spending, particularly concerning Ukraine aid.

Vought’s stance on impoundment. Vought refrained from committing to disbursing already appropriated Ukraine aid, asserting he would “follow the law” but deeming the Impoundment Control Act of 1974 unconstitutional. The act mandates the executive branch to spend funds as directed by Congress, aiming to check presidential authority. His stance reflects President-elect Donald Trump’s pledge to challenge the act, emphasizing presidential impoundment authority to reduce government spending.

Democratic opposition. Democratic senators strongly opposed Vought’s position:

• Sen. Gary Peters (D-Mich.) scrutinized Vought’s previous delays in disaster funding for Puerto Rico.
• Sen. Richard Blumenthal (D-Conn.) labeled Vought’s responses “disqualifying.”
• Sen. Maggie Hassan (D-N.H.) demanded assurances that Vought would resist presidential orders to withhold disaster relief funds.

Republican response. Even within his party, concerns emerged: Chairman Rand Paul (R-Ky.) supported Vought but reiterated that appropriated funds must be spent as intended.

Of note: Vought’s confirmation hearing underscores potential shifts in federal fund management under a Trump administration. His stance on impoundment could provoke constitutional disputes and reshape executive-legislative power dynamics. As the confirmation process advances, the long-term implications of Vought’s views on budget management and his alignment with conservative fiscal policy remain pivotal.

— USDA updates list of Central American countries affected by screwworm. USDA has formally notified that Guatemala, Honduras (link), Nicaragua (link), Panama, and Costa Rica (link) have been added to the list of regions affected by screwworm, as detailed in recent Federal Register notices. The Animal and Plant Health Inspection Service (APHIS) explained that regions are added based on screwworm detections reported by veterinary officials, the World Organization for Animal Health (WOAH), or other credible sources. These updates reflect actions primarily taken in 2024 or earlier and do not indicate new screwworm findings in the listed countries. Currently, 124 countries are on the affected list, with Mexico temporarily restricted due to screwworm.

— USDA officially updates poultry payment rules, withdraws fair competition proposal. USDA officially published its final rule on Poultry Grower Payment Systems and Capital Improvement Systems, set to take effect on July 1, in the Federal Register (link). The rule’s future remains uncertain, as it could be subject to changes under the Trump administration.

Simultaneously, the USDA has withdrawn its proposed rule on Fair and Competitive Livestock and Poultry Markets (link). Despite this, the Agricultural Marketing Service (AMS) affirmed its continued support for the rule’s intent and purpose. The withdrawal provides an opportunity to revisit the matter in the future and work with stakeholders to implement the Packers and Stockyards Act. AMS emphasized that this decision does not reflect a change in its interpretation of authority.

Of note: Given the administration’s stance, it is unlikely that rulemaking for the withdrawn proposal will resume.

— Study shows Iowa’s Pork Industry is a pillar of economic strength. A recent study for the Iowa Pork Producers Association highlights the pivotal role of Iowa’s pork industry in the state’s economy. As the nation’s top pork producer, Iowa contributes 33% of the U.S. hog inventory and supports over 120,000 jobs. In 2024 alone, the pork sector added $15.4 billion in economic value to Iowa, generating $8 billion in household income and $40.5 billion in total sales. The study was conducted by Decision Innovation Solutions (DIS) in 2024. Highlights:

• Job creation: 64,000 jobs from hog production, 39,000 from hog slaughter, and 16,000 from hog processing.
• Economic impact: $9.9 billion from hog production, $3.9 billion from slaughter, and $1.5 billion from processing.
• Record hog inventory: 25 million hogs in December 2023, driving $9.328 billion in cash receipts.

Beyond economic benefits, Iowa’s pork industry emphasizes sustainability. Hog manure enriches soil, reducing reliance on synthetic fertilizers, while the use of local feedstuffs bolsters efficiency. Iowa pig farms, rich in heritage and innovation, exemplify a self-sustaining agricultural model that supports local communities and strengthens the U.S. food supply chain.

— NWS outlook: Improvement in fire weather conditions across southern California... ...A brief moderation of temperatures across the central U.S. before an arctic front plunges into the northern U.S. on Friday... ...Lake effect snow expected on Thursday and snow also expected for the central Appalachians.

(NWS)

20: Inauguration Day
20: College football national championship
24: USDA Food Price Outlook
26: AFC and NFC football championships
27: First day IRS will begin accepting 2024 federal tax returns
28: Florida’s 1st and 6th special primaries
31: Employers and financial institutions should send out W-2 and 1099 tax forms
31: Federal Open Market Committee meets
31: USDA Cattle

Economic aid for farmers | Disaster aid for farmers | Farm Bureau summary of aid/disaster/farm bill extension | 45Z tax incentive program | Poultry and swine line speeds | WASDE | Crop Production | USDA weekly reports | Crop Progress | Food prices | Farm income | Export Sales weekly | ERP dashboard | RFS | IRA: Biofuels | IRA: Ag | SCOTUS on WOTUS | SCOTUS on Prop 12 pork | Gov’t payments to farmers by program | Farmer working capital | USDA Ag Outlook Forum |