The U.S. Department of Agriculture (USDA) reported that producers have received more than $4 billion to date through the Emergency Relief Program (ERP), representing about 67 percent of the $6 billion projected in its first phase. The USDA mailed pre-filled applications in late May to producers with crop insurance who suffered losses due to natural disasters in 2020 and 2021. Commodity and specialty crop producers have until July 22 to complete applications. The USDA is implementing ERP in two phases, with the first utilizing existing claim data and the second intended to cover other producers and fill-in gaps.
The USDA reminds farmers who have not yet completed their crop acreage reports to do so before July 15 with their local Farm Service Agency (FSA) office. The reports will help farmers become eligible for many FSA programs, including disaster assistance. Filing acreage reports, including failed and prevented planted acres, can prevent the loss of program benefits.
The House Appropriations Committee passed its draft FY 2023 agriculture appropriations bill, which funds agencies and programs within the USDA and U.S. Food and Drug Administration. For FY2023, the bill provides $27.2 billion – an increase of $2.075 billion or 8 percent – above FY2022. Notably, the bill provides nearly $3.6 billion for agricultural research programs, including the Agricultural Research Service, National Institute of Food and Agriculture and highest ever level for Agriculture and Food Research Initiative, USDA’s flagship competitive research program. The legislation also invests over $560 million for the expansion of broadband service to enhance rural development, including $450 million for the ReConnect program. This is in addition to the $2 billion broadband investment in the recently enacted infrastructure package.
The White House Office of Management & Budget released an updated regulatory agenda for the coming months which pegged September for the final rule on the canola renewable diesel Renewable Fuel Standard (RFS) pathways. The U.S. Canola Association (USCA) submitted comments and looks forward to a final rule that approves canola renewable diesel for RFS eligibility.
On June 3, the Environmental Protection Agency (EPA) finalized RFS volumes and rules for 2021 and 2022 as well as reset volumes and standards for 2020. As shown in the table below, the EPA slightly increased biomass-based diesel volumes for 2022 after holding them level from 2020 to 2021. The biomass-based diesel industry welcomed the final rule as a positive step toward addressing high fuel prices and shortages. A recent study from the World Agricultural Economic and Environmental Service, sponsored by Clean Fuels Alliance America (formerly the National Biodiesel Board), shows that U.S. production of biodiesel and renewable diesel provides an essential addition to fuel supplies and lowers the price of diesel fuel by 4 percent.
Final Volume Requirements for 2020-22 (billion gallons):
Category | 2020 | 2021 | 2022 |
Cellulosic Biofuel | 0.51 | 0.56 | 0.63 |
Biomass-Based Diesel | 2.43 | 2.43 | 2.76 |
Advanced Biofuel | 4.63 | 5.05 | 5.63 |
Total Renewable Fuel | 17.13 | 18.84 | 20.63 |
Researchers at the U.S. Department of Energy’s Argonne National Lab released an updated analysis of greenhouse gas (GHG) emissions for biodiesel and renewable diesel production from various feedstocks, including canola. Overall, the analysis reinforces the emission benefits of these biofuels when replacing petroleum diesel. This updated analysis finds that biodiesel and renewable diesel can reduce GHG emissions by 64 to 86 percent relative to petroleum diesel. Notably, it finds biofuels produced from tallow and used cooking oils are lower than previous estimates. Canola fares better than most feedstocks.
The California Air Resources Board (CARB) is evaluating scenarios for achieving economy-wide carbon neutrality by 2035 and 2045. The one recommended by CARB would maintain an important role for biofuels rather than full electrification. CARB’s modeling assumes at least 2.4 billion gallons per year of biomass-based diesel being produced in or imported into California starting in 2025 and remaining through 2045. This represents a doubling of current consumption rates. Clean Fuels Alliance America (formerly the National Biodiesel Board) submitted joint comments with the California Advanced Biofuels Alliance supporting CARB’s move away from draconian alternatives.
Crop protection products are facing challenges on several fronts. This month, the Supreme Court declined to hear industry appeals of two lower court rulings (Hardeman and Pilliod cases) against glyphosate. Meanwhile, juries in Missouri and Oregon voted in favor of Bayer. There have now been seven jury verdicts – three for plaintiffs and the last four consecutive verdicts in Bayer’s favor. Non-governmental organizations (NGOs) are also challenging the EPA’s interim registration decision on glyphosate. In January 2020, as part of its routine registration review of glyphosate, the EPA published its interim favorable decision. In March 2020, a group of NGOs filed petitions with the U.S. Court of Appeals for the Ninth Circuit challenging the EPA’s decision. On June 17, the court issued a split ruling on the NGOs’ petition. Most notably, it vacated the human health portion of the EPA’s interim determination and remanded it back for “further analysis and explanation” that glyphosate is safe for use and not carcinogenic. Current glyphosate product registrations remain in place and growers can continue to use the products based on label instructions.
On June 16, the EPA released three final Biological Evaluations (BEs) for the neonicotinoid insecticides clothianidin, imidacloprid and thiamethoxam. These products are currently undergoing routine registration review by the EPA. As part of the review, endangered species assessments (ESAs) are being conducted. BEs are the first step in the ESA process and the EPA will now consult with the U.S. Fish and Wildlife Service (FWS) and National Marine Fisheries Service (NMFS) to decide if additional protective measures are needed. Registrants, grower groups and others will continue to have opportunities to participate in this process to help ensure any new measures proposed by the EPA are fully informed based on sound science and actual use. BEs are based on highly conservative assumptions and do not conclude that current uses of these insecticides have impacted any endangered species. Instead, and as an example of the highly conservative nature of the evaluations, the EPA’s method includes the highest labeled use rates and maximum usage footprints allowed based on current labels. In the majority of instances, this results in endangered species receiving “may affect” determinations but the products are still approved for use. None are taken off the market and therefore, do not impact sales. This process will continue through 2025 and could trigger additional protective measures on existing labels.
The USCA joined 14 agricultural groups on comments submitted to the USDA about the benefits and potential of biotechnology, urging continued efforts to streamline regulatory barriers that are stifling innovation.