Congress, Usda, Iowa discussed on The Big Show

The Big Show


Twelve thirty five on the big show Clock Bob. Quitting the big show today. Andy and I have been going over this Latest Corona Virus Food Assistance Program For Agriculture Andy We talked with Secretary of Agriculture. Mike Nag in there was an area that was not covered in here. Well a couple of areas. You talked about One of those though The ethanol industry and we have on the telephone line with us. I believe Andy Mighty shos talking to us today. Good friend of the Big Show. Executive Director. Our renewable fuels association here For some real time reaction to USDA's announcement or I guess money in your case non-announcement announcement What do you? What do you make all of this? Well rightly or wrongly. You know the. Usda for the last several weeks is pretty much and sometimes in fairly blunt language told us that you know they're not going to give any money to the biofuels industry to help get through this time unless Congress directs them to we think that's a mistake Along with a lot of other people around the world or around the country I guess we do think the. Usda has the authority to do this and And should do it. And they have and they have funds there that they could use to do this But if that's going to be their position then we have no choice but to look to Congress and the house Recently passed a provision that would provide some economic assistance to us. And maybe as early as today I don't really WANNA scoop their their news. But I do believe that Senator. Grassley is operatives working on some legislation introduced that would would Provide some support as well. What what type of support do you need money or or how would you like to see that done you know? I mean I'd like to be creative. I like to think outside the box. But we're in a situation where there's just not a lot of options right now. We we expect about forty percent of Iowa's ethanol capacity is production capacity as offline We'll get some new numbers later today. It might be a little bit below that but it's still going to be close to forty There's just no way. The government can hit some magic button and restore that demand in short order. So you're basically left with a choice and that is you're either going to provide a cash infusion to get these facilities through this You Know Covid era of demand destruction or you're going to see a lot of them you know. Run out of money going bankruptcy. Some not have the cash to even by corn to start up when demand does ultimately return so That's what the government has done for many other industries And while it's not necessarily creative they do it because it works and If we want to see these locally owned ethanol plants you know stay locally owned and and survive this that's what Congress or the USDA. He's GonNa have to step up and do well and The ripple effect obviously down through the industry to what we're talking about with corn and soybean prices greatly depends on that industry being viable and being operational and being in place. Yeah if you think about it about nationwide real close to forty percent of corn goes into an ethanol plant Upper thirty percents On a typical year now. Obviously we're making more than ethanol we're making the distillers grains and there's corn oil and there's lots of other products even to that people have learned is pretty important in lots of industries The comes from US but here in Iowa it's close to sixty percent so almost sixty percent of corn first time it's going to be processed. There's going to be an and all and I mean that's just a huge part of our market It's something that we've always been very happy about it. I mean that's the whole reason. Farmers got involved in created the modern dry mill. Ethanol industry was they wanted to add value and create a market for their ever-growing yields of corn. And so we've always prided ourselves on being a good place to take that corn and having to be a win win so you know it's it's hard to see these plants shut down into see farmers you know looking for other options of of where to go with her their corn or of livestock producers. You know not not having access to the steelers grains that they become So accustomed to it's a great affordable source of protein and and we want get these plants going but the bottom line is going to take months to get demand back to levels where you don't have all this capacity offline overhanging the market even now when you get a little bit of good news like plants pop on and then it like more plants come on back online than are required for the little bit of good news and we're just GonNa see that Little Ping Pong Until we get back to normal demands. And that's going to be a long time. And that's that's why we definitely need some help and you know we'd like the USDA to just to do it we think they have the authority and the cash to do it but if it takes congress than we are asking our legislative leaders to to direct the USDA to do it Well we'll keep in touch Will keep up with. What's going on money? I guess I just ask. What do you think be You know what do you think? The chances are something coming through Congress at this point. I think people understand how important this is. I don't think it seems to me that the you know the the bill they pass out house is probably not going to fly through the Senate to say the least but the Senate is going to work on. I do think that they will come together. With another proposal. To help out the economic devastation. From from all these shutdowns and you know the shelter in place orders and everything and and I think there's a good shot. We can get by a biofuels package in there I think what the House did was very similar to to what industry been asking for from the USDA differences here. And there you know is it. Bushels is a gallons but the end of the day. We need a reasonable way to give an appropriate amount of of assistance to these facilities and and to see them through and we either do that. or. I think you're going to see some of them. Go Away so I'm actually optimistic. That while this next package might take a few weeks yet to put together we we can. We can be in the final pack Well like I said. We'll we'll keep in touch with the as we have been As we all get through this and appreciate your time today money as always anytime thank you. Yeah you bet. Monte Shaw Executive Director Iowa Renewable Fuels Association Bob With you continued still out there. And that's one of the things that Secretary Nag mentioned earlier was This direct assistance isn't perfect and certainly renewable fuels have been hit hard during this period. Also yeah exactly and I think Monty Is Talking to as well about another eight package that Still working through Congress. There may be something in there for renewable fuels but Secretary Nag pointed that out earlier force. Hey Andy let's move on the three big things you need to know brought to you by your Iowa. Soybean farmers planting progress in fact corn planning basically is complete here in the state of Iowa before Memorial Day with a big number showing up with. Usda NASA their weekly report ninety six percent to the crop in the ground sixty three percent of it has emerged soybeans Coming along nicely as well. Crop moved to eighty six percent planted almost nearly a month ahead of last year and three weeks ahead of average cares with the. Usda NASU says about a quarter Dean are off the ground nationally eighty percent complete planning wise fifty three percent Soybean wise eighty percent on corn. And you can see all of the numbers out on the big show. Website seeing an increased price of gasoline and therefore that start to be good because it indicates increasing demand six and a half cents higher this past week Patrick. Dehaan of gas buddy says the increase is attributed to eight nearly five percent increase in gasoline demand. gasoline dancing that quotas long states continue to loosen restrictions. It'll mean more motorists on the road and filling their tank direct assistance details continue to filter out from USDA as to how it is going to assist of food fuel and fiber producers for disruptions in the industry beyond their control caused by covid nineteen in the pandemic. You know this is much needed assistance first and foremost and so. We're appreciative of First Congress Allocating these dollars and then. Usda and the trump administration. You know getting these pushed out and in doing so by the end of May which is what they said they do. So high was secretary of Agriculture. Mike Nagging daily addressed to the food and fiber industry. Right here on. The big show says that Sign up period will begin may twenty sixth at the FSI office now. There are some specifics to this. We continue to learn more and more. But I've got the very latest posted including assigned values for crop or livestock available social media. Wise big show farm twelve forty four on the big show and those are the three things you need to know attention. Farmers Make your investment yield big be an active participant in the Iowa Soybean Association at no additional cost just click on how can I join? Asa at a soybeans dot com and reap the benefits of belonging weather brought to you by hurts real estate services farmland auction brokerage and evaluations? Big thing to hurts real estate services nate. Let's take a look at what's going on. South America where the harvest is coming in quick update absolutely in Brazil starting in Mata Grosso to sue and the provinces they're mostly dry until Thursday's GonNa see some scattered showers on Friday in the southern part of the region in the northern part of the region on Saturday. Some rain their tempers nearer to above normal today above normal Wednesday until Friday. In the near below normal on Saturday Ruganda apart now they will have mostly dry conditions until Wednesday moderate heavy showers Thursday and Friday possible. They're scattered showers on Saturday. Temperatures near to above normal day above normal Wednesday Thursday and Friday than below normal on Saturday and Argentina will see a strong system of rain with widespread showers in the middle of this week. Benefiting their emerging wheat crop look worldwide. Weather brought to you by. It's real estate services pertz real estate services for all your family and sale needs hurts is the first call to make learn. Personalized customer. Care is all about farmland auctions brokerage in evaluation seventy plus years of experience will benefit you. They entered five nine three five to six three or anytime at hurts dot egg. We're talking about this Coronavirus Food Assistance Program. The application date has been posted. Now it is at the F. Essay offices and that application first date is may twenty six so next Tuesday is the first day that they'll be taking applications. Also Handy has posted Matrix there of What some of these Values are going to be for payouts. It's on the big show. Website talk to allies coming up here on a big show..

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