Daybreak March 24: Big trade announcement coming for Ag?

Ag Secretary Brooke Rollins teased on Friday that she will have a major announcement involving farmers coming soon. Rollins posted on X an interview with Fox News in which she expressed confidence that farmers overwhelmingly supported President Donald Trump even though they knew they might be harmed by retaliatory tariffs.

“They understood that there may be a little bit of short-term uncertainty for the long-term prosperity and the good for the country,” Rollins said in the interview. She led the X post with this: “BIG ANNOUNCEMENT COMING SOON.”
 
Keep in mind: Rollins is working on a trade compensation package that will involve using USDA’s Section 32 spending authority, according to what lawmakers have been told.

Industry weighs in on U.S. shipbuilding proposals

The Office of the U.S. Trade Representative will hear comments today from U.S. industries on recent proposals for spurring U.S. shipbuilding and eroding China’s dominance.

Representatives from the American Soybean Association, North American Export Grain Association, Dole and the Agriculture Transportation Coalition are slated to testify in a two-day hearing set for today and Wednesday.

Why it matters: Officials are considering imposing a steep surcharge on Chinese-made or operated vessels and new requirements for moving some U.S. exports on domestic ships. But ag exporters are concerned it could significantly increase shipping costs.

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In comments submitted to USTR last week, CSC Sugar’s Paul Farmer said the proposals are already hurting U.S. exporters. He described freight offers “drying up,” as companies face uncertainty around future costs.

A recent study warned that if all the proposals are adopted, U.S. wheat, rice and cotton exports could plummet to half their current levels as shippers scramble to adjust.

Brazilian officials suggest linking ethanol tariff talks with sugar

Multiple Brazilian officials have suggested Brazil should link any discussions around lowering its tariff on U.S. ethanol with calls for increased access to the U.S. sugar market.

U.S lawmakers and officials have been eying Brazil’s 18% duty on U.S. ethanol exports as an example of the type of nonreciprocal trade terms the U.S. should seek to address. But the Brazilian government says the tariff benefits domestic sugarcane producers in much the same way as the U.S.’ own duties on sugar.

Take note: Top trade official in Brazil’s Agriculture Ministry Luis Rua told Brazil’s Valor news on Friday that any negotiations around ethanol should include “some sort of compensation.”

“For us, that’s sugar,” Rua said.

His comments echoed those from Agriculture Minister Carlos Fávaro earlier in the week. Fávaro complained during a Senate hearing that the U.S. won’t reconsider its own high out-of-quota sugar duties. Brazil’s government also compared its ethanol tariffs to the U.S. sugar program in a recent submission to USTR – which they argue also uses tariffs to support domestic producers.

Georgia jury awards man $2 billion-plus in Roundup case

A Georgia man who claimed that long-term exposure to Roundup caused his non-Hodgkin lymphoma has won a $2.1 billion jury verdict against Bayer.

The company says it will appeal. The punitive damages of $2 billion are likely to be reduced because they are more than 10 times the compensatory damages of $65 million, a benchmark laid down by the Supreme Court.

Plaintiff John Barnes began using Roundup in 1999 and was diagnosed with cancer in 2020. In 2021, he sued in state court in Cobb County.

In arguing for a directed verdict from the judge before the jury’s decision, Bayer said Barnes’ claims were time-barred – he should have filed the lawsuit within 10 years of the date he first used Roundup.

The jury verdict came shortly after the state’s legislature passed a bill to limit the types of lawsuits filed by Barnes. The bill is awaiting Gov. Brian Kemp’s signature.

Report: Bioeconomy generates $210 billion in economic impact

A new report pegs the direct economic impact of the U.S. bioeconomy at $210 billion, with indirect impacts of more than $830 billion. 

The report being released today by the Biotechnology Innovation Organization and the consulting firm Kearney predicts the bioeconomy could reach $400 billion by 2030.

The report also says biobased products could generate up to $291 billion in economic impact by 2030, while plant and animal biotechnology could contribute $56 billion.

U.S denies water delivery request from Mexico amid dispute

The Trump administration is denying Mexico’s request for a special delivery of Colorado River water to the city of Tijuana amid an ongoing dispute between the two countries over another river — the Rio Grande.

In an X post, the State Department’s Bureau of Western Hemisphere Affairs announced it would deny the “non-treaty” water request, saying shortfalls in Rio Grande water deliveries from Mexico are “decimating American agriculture.”

Take note: Mexico is supposed to deliver 1.75 million acre-feet of Rio Grande water to the United States over a five-year period under a 1944 treaty but has lagged in its deliveries during the current cycle, which ends in October. 

Final word

“I am committed to supporting our American farmers in the Rio Grande Valley – that is why with @POTUS’ leadership, we will hold Mexico accountable for failing to uphold their end of the 1944 Water Treaty.” – Ag Secretary Brooke Rollins in a post on X.

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