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July featured cooler temps, above-normal rainfall... July weather is widely regarded as the most important factor in determining corn yields. Ag meteorologist Craig Solberg noted July temperatures averaged 0.8 degrees Fahrenheit below the long-term average and were just slightly cooler than last year. Corn Belt rainfall was 0.97 inch above normal last month, making it the wettest July since 2016.
Argentine backlog at ports due to worker strike reaches 36 ships... The number of grain ships facing loading delays in Argentina rose to 36 on Thursday, the CAPyM ports chamber told Reuters due to a strike by oilseed workers. The strike started Tuesday, halting shipments from ports that have soy processing facilities. Only two ports among Argentina’s main ag shipping hubs, all located north of the city of Rosario on the Parana River, do not have soybean crushing plants.
Drought covers half of U.S. but crops footprint relatively small... As of Aug. 6, the Drought Monitor showed 52% of the U.S. was covered by abnormal dryness/drought, up three points from the previous week. USDA estimated drought covered 5% each of corn and soybean production areas, 18% of spring wheat and 13% of cotton. Agriculturally, the bulk of the dryness/drought was in the Plains and PNW.
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Stabenow blames GOP for stalled farm bill talks... Senate Ag Committee Chair Debbie Stabenow (D-Mich.) announced that progress on the farm bill has stalled due to Republican resistance to compromise on SNAP and climate funding. Republicans are advocating for significant increases in crop subsidy spending, cuts to SNAP funding, and the use of climate funds for soil and water projects that do not mitigate carbon emissions. Stabenow supports smaller increases in crop support, opposes SNAP cuts and insists on strict regulations for climate funding.
“This year, we’re stuck because of an increased sense of partisanship and a desire by Republicans to really, really play politics with food,” said Stabenow during a Zoom call to rural Americans by the Harris/Walz campaign on Tuesday night.
Minnesota Governor Tim Walz, who has been instrumental in previous successful farm bills (2008, 2014 and 2018), has also been active in the current discussions, Stabenow said. Walz’s efforts include “marker” bills focused on land stewardship and supporting new farmers, particularly veterans. The 2018 Farm Bill adopted several of Walz’s proposals for veterans in agriculture, providing expanded access to education, training, crop insurance benefits and premium subsidies.
Minnesota offers tax credits and financial support for beginning farmers, including a program by the Rural Finance Authority to reduce borrowing costs and grants to help with farm down payments. Walz emphasized the vital role of agriculture in Minnesota’s economy and the importance of supporting both current and new farmers, especially in challenging times.
USDA to be more flexible on farm loans... USDA will amend its farm loan rules, effective Sept. 25, to provide more flexibility in repayment terms for producers and to reduce the collateral required for borrowing. Zach Ducheneaux, administrator of the Farm Service Agency, said these changes aim to remove lending barriers and increase access to credit for borrowers, especially those in need. USDA serves as the lender of last resort for creditworthy producers unable to secure financing from other sources, offering direct and guaranteed loans for operating costs and farmland purchases.
Key revisions include the creation of the Distressed Borrower Set-Aside program, which allows distressed or delinquent borrowers with direct USDA loans to defer one annual loan installment at a reduced interest rate. Flexible repayment plans will also be introduced to help eligible loan applicants improve profitability and build cash reserves. These plans aim to create upfront positive cash flow, enabling borrowers to include a reasonable margin for increased working capital reserves and savings for retirement and education.
Additionally, USDA will relax loan security requirements for direct farm loans.
Grain export facility project in Louisiana canceled... The $800 million grain export facility project planned by Greenfield Louisiana LLC in Wallace, Louisiana, has been canceled after extensive delays in obtaining federal permits. The project, which had been in the works for over three years, faced significant opposition from local community groups and encountered repeated delays from the U.S. Army Corps of Engineers. The primary reason for the cancellation was the prolonged permitting process.
The U.S. Army Corps of Engineers announced another six-month delay, which extended the permitting timeline to over three years. This latest delay was the fifth in the past 18 months, leading Greenfield to abandon the project. The cancellation is a significant economic blow to the region. The facility was expected to create 1,000 construction jobs and over 300 permanent positions. It was also projected to generate approximately $300 million in state tax revenue.
Governor Jeff Landry criticized the Corps for yielding to pressure from special interest groups, highlighting the economic loss for St. John Parish. The project faced strong opposition from local community groups, particularly The Descendants Project, which is focused on preserving the heritage and environment of the area.
The proposed site for the facility is in a historically significant area known as “Cancer Alley,” which has a high concentration of industrial facilities and associated health risks. Residents and activists argued the facility would disrupt the rural character of the area and pose environmental justice issues.
CHS to build Brazilian grain terminal... CHS Inc., the largest U.S. farmer cooperative, will partner with Brazilian train operator Rumo SA to build a major grain terminal in Brazil’s largest port. The companies have agreed to create a joint venture that will construct and share control of the new terminal in the southern port of Santos with capacity to handle 9 MMT o grains and 3.5 MMT of fertilizer annually. Brazil has rapidly expanded port capacity for agricultural exports amid its expanding production and global export prowess.