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The News:
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Earlier this week, the Biden administration linked arms with ag groups and sent a clear message to the Supreme Court: "Prop 12βs gotta go."
(And the pork-producing crowd goes wild)
"Quick" refresher (buckle up): Proposition 12 requires that pork sold in California must come from hogs born of sows raised with specific housing/space requirementsβincluding out-of-state pork sold to Californians.
And with less than 4% of U.S. sow housing meeting those requirements, thatβs a big problem.
After passage in 2018, ag groups quickly challenged it, stating it violated the U.S. Constitutionβs interstate commerce clause. But in July 2020, the 9th Circuit Court of Appeals said, "Nahβ¦ we think itβs fine."
Implementation was delayed. Then back in September, the U.S. Supreme Court agreed to hear the ag groupsβ petition for higher review.
Friendly brief: As multiple ag groups file amicus briefs with the court, U.S. Solicitor General Elizabeth Prelogar joined in and filed a "friend of the court" brief of her own.
Her thoughts? Prop 12 violates the interstate commerce clause, and the 9th Circuit Court done messed up.
Citing a past high court decision, she noted: "[California] βhas no legitimate interest in protectingβ the welfare of animals located outside the state."
Where this goes: The administration canβt tell the court what to do (thank you, separation of powers), but ag groups and Biden are hoping this "gentle nudge" will point them in the right direction.
Oral court arguments are scheduled for October 11.
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β No wood-be relief. President Biden is pondering tariff relief on certain goods to ease inflation, but isnβt currently considering tariff cuts on Canadian lumber, according to the U.S. Treasury Secretary.
β Will pay in wheat. In an attempt to attract more buyers, a developer in China advertised that potential customers could pay their down payment on a house with wheat instead of cash.
β A berry important policy change. Mexico wonβt allow subcontracting of day laborers anymore in the avocado and berry industries, in an effort to comply with stipulations from its trade agreement with the U.S. and Canada.
β More Zβs needed. A study in Nebraska found that farmers and ranchers sleep about 28 fewer minutes each night during busy seasons like harvesting or planting.
β More dough for dairies. USDA is offering more than $100M in funding for dairy businesses to process capacity expansion, make on-farm improvements, and pay for technical assistance.
β Dollars for disease (prevention). More than $24M in funding is on the table from USDAβs Animal and Plant Health Inspection Service for projects that can help with animal disease preparedness and response.
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99 Problems But Methane Ain't One |
Christina Felsing | Getty Images / Jupiter Images
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U.S. and Australian company CH4 Global is making waves with its first commercial sale of a seaweed-based product to help reduce methane emissions from ruminant animals.
Tell me more: Asparagopsis (not asparagus) is an important ingredient in CH4βs formulation. Thereβs this active ingredient called bromoform in the bovine gut that Asparagopsis is especially high in.
By disrupting the gut microbes, this special seaweed has shown an 80% reduction in cattle methane emissions when cows eat it, and with the CH4 formulation, up that to 90% with just .5% dry matter feed using Asparagopsis.
Must seek kelp: The supplement made by CH4, which is sourced from marine and tank cultivation, will be used in feedlots in Australia. The company that went seaweed shopping first is CirPro, an Australian protein manufacturer and meat processor.
Soundbite: "CirPro is excited to partner with CH4 Global for the first commercial supply of Asparagopsis seaweed-supplement in Australia. This marks an important milestone towards the goal of a carbon-neutral beef industry in Australia by systemically reducing, not just offsetting, emissions. It represents a win for the beef industry, a win for Australia, and a win for the planet." β Roger Smyth, CirPro CEO
Where this goes: The company hopes to reach 150M cattle, or 10% of cows everywhere within the next five years.
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Rice balance sheets are on the brink, according to Texas A&Mβs Agriculture and Food Policy Center.
Pressureβs on: Riceβs infrastructure and market go against the grain from other commodities. Input prices have climbed across the board, but rice hasnβt seen corresponding gains in commodity price.
Out of 15 representative rice farms, only five will cash flow under current conditions, according to Texas A&M. The rice industry is at risk of losing producers at a pace never seen before.
Budget busted: It could cost growers up to $1,000 to fuel up their tractors. Increasing fertilizer prices are taking their toll, but farmers canβt pass those inflated costs down.
Soundbite: "The mills actually set the price. The world market sets the price on us, and that's a whole different ball game," said Southeast Texas farmer Casey Dishman.
Where this goes: Dr. Joe Outlawβco-director of A&Mβs Ag & Food Policy Center, professor, and extension economistβhas proposed Congress use adjusted formulas from the Coronavirus Food Assistance Program to support rice producers. He also suggested indexing the Price Loss Coverage reference price to cost of production.
USA Rice is involved in conversations with the government to secure near-term financial support for farmers.
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A new July Fourth Food Inflation Report from Wells Fargo found that hosting a party of ten for a holiday cookout would cost 11% more this year versus 2021. Oh, snap.
Can you rank the cookout food items below from largest percentage price increase to smallest?
- Avocados
- Hot dogs
- Pork chops
- Tomatoes
Answer at the bottom of the email.
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Avocados: +24%
Hot dogs: +12%
Pork chops: +3.1%
Tomatoes: +1%
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Written & Edited by Kevin Cross, Sheridan Wimmer, Kelsey Faivre, Ashley Scoby, and Travis Martin
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