Another meeting about the Renewable Fuel Standard (RFS) seemed to grab the farming community’s attention this week. Sen. Ted Cruz (R-Texas) and Sen. Chuck Grassley’s (R-IA) messages to the farming community were vastly different following the meeting on Tuesday.
Friday’s Farmer Forum took the issue head on.
“I feel like we are playing whac-a-mole here, and it’s not fun, and it’s not a game anymore…it is demand destruction,” said Iowa Farmer Pam Johnson. “Informa did a study last fall that showed the effects of decreases in ethanol exports and it showed that it could affect corn up to 56 cents a bushel.”
AgriTalk host Chip Flory has said he believes the plan Cruz is touting, to reallocate RFS obligations to exports, is illegal. Grassley’s office sent comment to Flory stating that this was in no way part of the plan that came from the meeting on Tuesday.
Discussion Friday also included NAFTA negotiations, the house Farm Bill, and this weeks USDA Report. Below are some highlights from Johnson, Shaun Haney, Jim Wiesemeyer:
On NAFTA Negotiations
About a May 17th deadline announced to allow Congress to vote on a new deal
“I think the reality here is that the US isn’t really all on the same side…I think we are going to hear this big discussion now about what can the president actually do regarding approving NAFTA 2.0 without congress, it not a treaty, it’s an agreement…the May 17th thing is fine and dandy, there’s just too many things they have no agreed on yet.”- Shaun Haney
On the need for Crop Insurance in the Farm Bill
“Just take a look at this spring, and see why it’s so important. It’s about the only risk management tool that is solid for us with all the other uncertainty in markets. We’ve got to have it, we always hear it from farmers this is our #1 priority for risk management”- Pam Johnson
“I think the reason why the soybean estimate was so far off from the trade was because so many analysts misread USDA’s from what they can assume. Even if China announced that they would retaliate against soybeans the world board cannot assume that until its actually done.” – Jim Wieseyer
Catch the rest of the discussion from AgriTalk by clicking on the player above