Pink slime and green dollar payout | Sen. Menendez trial | Funding Trump’s wall | RVers as farm workers | Status quo for sugar in farm bill | | U.S. corn exports | China smog action impacting ag | China wants to boost livestock, dairy output | India’s new biofuel policy | China and unhackable data
— Disney paying at least $177 million to settle ‘pink slime’ lawsuit... In a footnote on the company’s quarterly earnings report on Tuesday, Disney (parent company of ABC News) said it paid $177 million that was “incurred in connection with the settlement of litigation,” at least some of which was related to a years-long legal dispute with South Dakota-based meat processor Beef Products Inc. A lawyer for BPI told CNNMoney that its settlement was worth even more than $177 million.
— A federal judge rejected an attempt by Sen. Bob Menendez (D-N.J.) to avoid trial on corruption charges. The trial begins Sept. 6 with jury selection later this month. Menendez’s lawyers argued that the charges against him are based on a flawed theory the Supreme Court rejected when it overturned former Virginia Gov. Bob McDonnell’s unrelated corruption conviction. The judge in the Menendez case did not rule on the merits of that argument, saying it should be determined during his trial. Republicans could pick up the seat if Menendez is forced from office as New Jersey has a Republican governor (Chris Christie). But it would likely be a short-lived gain with a Democrat widely expected to win in the 2018 election.
— A big wall to climb for wall funding. The White House wants to deal to avert a government shutdown this fall by agreeing to lift the spending caps long opposed by Democrats in exchange for border wall funding. “Marc Short, the White House’s director of legislative affairs, met with top staffers from both parties on the Senate Appropriations Committee last week to sell the proposal. President Trump keeps insisting on funding for a border wall, but Democrats continue to strongly resist.
— Ag industry looking to “RVers” for farm labor support. Farming operations throughout the U.S. have had difficulty attracting farm labor due to several reasons. Technology is aiding some, with the growing use of robots in the horticultural and dairy sectors. But others are tapping into a custom-worker-like concept that includes legal seasonal laborers who contract for such work, normally at planting or harvest time. Farmers contract for the help via third-party consultants. They frequently travel as groups in Recreation Vehicles (RVs). Besides work on farms, the bands of workers frequently work at state parks and after the farming harvest season is completed, they frequently work at Amazon distribution centers.
— Key farm-state lawmaker sees “status quo” for sugar program. House Ag Chairman Mike Conaway (R-Texas) does not see a need to change the sugar program, often a target for reform from conservatives and sugar users. He made that clear during an appearance earlier this week in San Diego at an annual sugar industry confab.
— U.S. corn exports to EU should not be greatly impacted by EU import duty. The European Union (EU) this week deployed an import duty on corn of 5.16 euros ($6.10) per tonne as import prices fell and triggered the quota for the first time in three years, according to the European Commission. The move had been expected given pressure on U.S. corn prices and a rally in the euro. “This will ensure that European producers are not put at a disadvantage in the current market conditions,” the Commission said. According to USDA data for the week ended July 27, total export commitments of U.S. corn for 2016/17 to the EU stood at 897,000 tonnes, with 857,700 tonnes already shipped. Export commitments stood at just 322,000 tonnes at this point in the 2015/16 marketing year.
— Report: China efforts to temper smog in some areas impacting soymeal, other production. Prices for soymeal in Shandong, China, have risen this week as environmental inspectors are in the province to monitor air quality for a fourth time, according to Reuters. The news service said that many soybean crushers had reportedly suspended operations this week in Shandong ahead of the inspections, but Reuters said it could not confirm the actions. Still, the news service said soymeal prices in Shandong had risen this week despite there being hefty domestic supplies. The situation is also boosting gasoline prices in the region as smaller refiners are said to have suspended operations for lack of licenses or meet emissions requirements.
— China seeks to boost livestock, dairy output in Northeast. Increasing livestock and dairy production in the main grain production areas in Northeast China is a goal being set forth by the Chinese Agriculture Ministry as they seek to whittle down mountainous supplies of grain. Heilongjiang, Jilin, Liaoning and Inner Mongolia produce about 25% of China’s grain, but those supplies have to be shipped to areas further south in the country to feed mills that supply hog and poultry farms.
“Accelerating the development of modern animal husbandry in the main producing areas of northeastern China is an urgent need to digest corn stocks and optimize the agricultural structure,” the ministry said in new guidelines posted on its website. Boosting hog, beef and dairy production would also temper impacts of production in more-populated areas along China’s coast.
The ministry did not signal how it will achieve the rise in production, but said it wants the Northeast part of the country to produce 15% of China’s meat and 40% of its milk by 2020 and by 2025 be fully modernized and become the “national meat, egg and milk supply base.” The government said the region needs to develop its feed processing sector and large-scale production of forage crops like corn silage and alfalfa.
— India to announce new biofuel policy as it seeks to cut oil, gas & coal imports. India will soon announce efforts to boost biofuels as it wants to trim greenhouse gas emissions and cut imports of fossil fuels, according to Oil Minister Dharmendra Pradhan. “The roadmap to lower crude oil imports is connected to biofuel,” Pradhan said. India, the world’s third-biggest oil consumer, aims to cut its crude imports by 10% by 2022. The county is aiming to create a biofuel economy worth 1 trillion rupees ($15.6 billion) in the next two years, he said a renewable energy conference. India’s three top state-owned oil companies are pledging a total of $2 billion on research into biofuel technologies with the government guaranteeing a return on their investment, Pradhan said.
— China has demonstrated a world first by sending potentially unhackable data over long distances using satellites, laying the basis for next generation encryption based on so-called “quantum cryptography.”
