US stimulus bill earmarks $14bn for CCC: Update
The US Senate has allocated $14bn to support agricultural price protection and farm income programs as part of its massive stimulus bill intended to provide economic relief from the coronavirus disruption.
The emergency funds will be sent to the Commodity Credit Corporation, a federal corporation which manages domestic farm income programs as well as foreign market development.
Sustained depreciation in product values and weakened demand stemming from measures implemented to stunt the spread of the coronavirus are set to squeeze farmer income in 2020, but could be mitigated if the senate's package is approved and signed into law.
Additionally, the bill also earmarks $9.5bn in emergency coronavirus funding to support agricultural producers affected by the pandemic, including specialty crop growers, producers that supply local food systems and livestock producers.
Congressional leaders negotiated the bipartisan $2 trillion deal in just five days, as the death toll in the US from the outbreak surpassed 700 and shuttered US businesses laid off what some analysts expect could be millions of workers. The deal would funnel the equivalent of nearly 10pc of US GDP to struggling businesses, states, hospitals and workers through a variety of grants, loans, cash payments and increased government benefits.
US Senate majority leader Mitch McConnell (R-Kentucky) said the deal would offer billions of dollars in emergency loans to businesses and rush new resources to healthcare facilities already struggling to manage the first wave of coronavirus patients. The agreement is also expected to send direct cash payments to most taxpayers.
"We are going to pass this legislation later today," McConnell said.
But the agreement will not include $3bn that would have gone to purchase 77mn bl of crude to refill the US Strategic Petroleum Reserve, something President Donald Trump wanted to help oil producers struggling from a collapse in prices. Senate minority leader Chuck Schumer (D-New York) touted the removal of the funds in a letter to Democratic colleagues this morning.
"Eliminated $3 billion bailout for big oil," the letter said.
The agreement, text of which has yet to be released, will save "hundreds of thousands of airline industry jobs," Schumer said in the letter. It will also prohibit airlines from stock buybacks and providing bonuses to chief executives. Crucial to the agreement was the inclusion of a Democratic demand for increased oversight of a $500bn fund for businesses, and a prohibition on Trump's hotel and other businesses from receiving loans and investments from those funds.
The prospect of a stimulus deal being reached helped send the US Dow Jones Industrial Average up by 11.4pc yesterday.
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Doubts abound over US midcon E15 shift: NATSO
Doubts abound over US midcon E15 shift: NATSO
Houston, 7 May (Argus) — An effort by eight US midcontinent states to start selling 15pc ethanol (E15) gasoline blends year-round starting in 2025 remains unlikely, according to US fuel retailer trade association NATSO. The US approved last month the request from Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin for year-round E15 gasoline sales starting next year. But even with that approval there are many barriers to making those sales a reality, said David Fialkov vice president of government affairs for NATSO, which represents truck stops and travel center operators. This includes a lack of investment from pipelines and refiners to prepare for the changes, as well as the higher costs of separating and selling different gasoline specifications at the retail level. "I remain pessimistic that it will come to fruition," Fialkov said Tuesday at a conference held by fuel retail industry group SIGMA in Austin, Texas. Political pressure to delay or abate the change in the midcontinent states will probably continue until refiners, pipeline companies and retailers begin to make the investments necessary, said Fialkov. E15 has been available for sale across the US since 2019, but a federal court in 2021 found that the Clean Air Act offers a fuel volatility waiver to refiners to produce only 10pc ethanol gasoline. The Environmental Protection Agency (EPA) has worked around this ruling for the last two summers by issuing temporary emergency orders allowing the sale of E15 because of the war in Ukraine's squeeze on crude prices. A group of midcontinent refiners has petitioned the EPA to delay implementation of the E15 rule until the summer of 2026. The EPA has not yet ruled on the request. Fialkov said a legislative solution to the issue at the federal level would provide a clear and uniform pathway to E15, as opposed to the the EPA's rule which leaves some states still relying on the waiver and others opting to go with year-round E15. By Zach Appel Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EPA sets new oil and gas methane reporting rules
EPA sets new oil and gas methane reporting rules
Washington, 7 May (Argus) — Federal regulators have updated emissions reporting requirements for oil and gas facilities as they prepare to implement a methane "waste" fee for the industry. The US Environmental Protection Agency (EPA) on Monday finalized new rules it says will improve the accuracy of data from the oil and gas sector under the federal greenhouse gas emissions reporting program. Oil and gas facility owners and operators will be required to estimate emissions from additional types of equipment under the rule, and they can draw on newer technologies, like remote sensing, to help estimate emissions. "EPA is applying the latest tools, cutting edge technology, and expertise to track and measure methane emissions from the oil and gas industry," agency administrator Michael Regan said. "Together, a combination of strong standards, good monitoring and reporting, and historic investments to cut methane pollution will ensure the US leads in the global transition to a clean energy economy." Data to support new fee The revisions to the "Subpart W" reporting requirements will be used to determine the amount of methane that will be subject to a "waste emissions charge" created by the Inflation Reduction Act. Under the law, the charge will be calculated based on the annual data that about 8,000 oil and gas sources are now required to report. The charge will begin at $900/t for 2024 methane emissions above a minimum threshold using current measurement data. It will then rise to $1,200/t in 2025 and $1,500/t in subsequent years. Industry officials had raised "serious concerns" about several aspects of the original proposal , warning it could lead to inflated emissions data. "We are reviewing the final rule and will work with Congress and the administration as we continue to reduce GHG emissions while producing the energy the world needs," American Petroleum Institute vice president of corporate policy Aaron Padilla said. The industry group previously said it will ask Congress to repeal the fee, which is only likely to occur if Republicans win control of the White House. Data collected since 2010 Oil and gas facilities have reported emissions under Subpart W since 2010. To simplify reporting, operators often count the equipment they have deployed, and use industry-wide averages to estimate emissions, in addition to other direct and indirect measurements. The industry has argued the Subpart W data is not accurate enough to collect the methane charge, which is expected to cost operators more than $6bn over the next decade. Environmental groups have had their own criticisms of the data, which they say omits vast amounts of emissions such as those from "super-emitter" events and poorly maintained flares. The final rule seeks to respond to some of those concerns by relying on updated emission factors, incorporating additional empirical data on emission rates, collecting data at a more granular level and relying on remote sensing technologies to detect large emission events. EPA also revised Subpart W to include more types of sources, including produced water tanks, nitrogen removal units and crankcase venting. The final rule also sets a threshold of 100 kg/hr of methane for requiring the reporting of emissions from "other large release events." The new data rules will take effect on 1 January 2025 and will first apply to reports submitted in early 2026 for next year's emissions. EPA is allowing the use of the new methodologies for calculating 2024 emissions, but operators can still use the existing rules. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Superbac busca reestruturação de dívidas
Superbac busca reestruturação de dívidas
Sao Paulo, 7 May (Argus) — A empresa brasileira de fertilizantes Superbac entrou com pedido no Tribunal de Justiça do estado de São Paulo (TJ-SP) para renegociar dívidas com credores e bloquear temporariamente os pagamentos por 60 dias, de acordo com solicitação arquivada em 3 de maio. O pedido, feito para a 1ª Vara de Falências e Recuperação Judicial de São Paulo, não é uma solicitação formal de recuperação judicial, mas sinaliza que a Superbac poderá solicitar o processo no futuro. De acordo com a petição inicial, a razão para a interrupção é uma "dificuldade financeira momentânea, porém reversível". A empresa afirma no pedido que a suspensão dos pagamentos é essencial para preservar os ativos da Superbac. Os pagamentos apenas beneficiariam um pequeno grupo de credores e colocariam a empresa em risco, informou a empresa. A dívida total da Superbac é de cerca de R$650 milhões. Em meio aos credores mencionados no arquivo, estão empresas de fertilizantes como a BPC; bancos como BTG, Santander, Daycoval e XP; fundos de investimentos; e empresas de logística como Multitrans e Coocatrans. A XP adquiriu uma participação na Superbac em julho de 2023, totalizando R$300 milhões. Localizada em Cotia, em São Paulo, a Superbac é uma empresa de biotecnologia, fundada em 1995, com operações em diferentes setores, como agricultura, fertilizantes e biofertilizantes, petróleo, gás e saneamento básico. A Superbac corresponde por 50pc dos fertilizantes organominerais e 6pc dos fertilizantes especiais no Brasil, de acordo com a petição. A empresa informou que a queda global no preço das commodities está prejudicando seu crescimento, uma vez que o setor de agricultura representa 99pc de sua receita. A Superbac tem uma fábrica de fertilizantes organominerais no Paraná, assim como centros de pesquisa nos Estados Unidos, Colômbia, Israel e Singapura. Por João Petrini Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
Mato Grosso sobe estimativa de soja para safra 2024-25
Mato Grosso sobe estimativa de soja para safra 2024-25
Sao Paulo, 7 May (Argus) — Mato Grosso deve produzir 12pc a mais de soja na safra 2024-25 em comparação com 2023-24, de acordo com o Instituto Mato-grossense de Economia Agropecuária (Imea). O estado deve produzir 43,7 milhões de toneladas (t) de soja, ante 39,1 milhões de t na temporada anterior. Essa é a primeira estimativa do Imea para a temporada 2024-25. A área plantada para a temporada 2024-25 deve alcançar 12,6 milhões de hectares (ha). Isso é ligeiramente acima dos 12,5 milhões de ha da safra 2023-24, uma vez que a desvalorização do preço da soja e os custos de produção mais altos fazem com que agricultores diminuam os investimentos para a safra. A produtividade da soja 2024-25 está estimada em quase 58 sacas de 60kg/ha, crescimento de 11pc ante as 52,2 sc/ha em 2023-24. Porém, a projeção ainda é prematura, uma vez que as condições climáticas, incidência de pragas e incertezas sobre os investimentos para a safra podem alterar as projeções. A produção do ciclo 2023-24 ficou 14pc abaixo da temporada anterior, em razão da falta de chuva nos estágios de desenvolvimento da safra, que reduziu a produtividade. Esse é o menor volume dos últimos dois anos, agora que o Imea consolidou os dados da temporada. A produtividade da soja 2023-24 ficou 16pc abaixo da produtividade de 2022-23, enquanto a área plantada ficou 2,9pc acima da área em 2022-23. Milho sobe Mato Grosso espera produzir 45 milhões de t de milho no ciclo 2023-24, crescimento de 4,1pc ante a projeção de abril, mas queda de 14pc ante o volume da temporada 2022-23, de acordo com o Imea. A produtividade foi estimada em 108,2 sc/ha em maio, em comparação com 103,9 sc/ha na última projeção, uma vez que a maior parte da safra demonstrou boas condições até o fim de abril e mais de 90pc da oleaginosa foi semeada durante a janela ideal de plantio. Porém, a produtividade representa uma queda de 7,4pc ante as 116,8 sc/ha registradas na safra 2022-23. As estimativas para a área semeada do milho 2023-24 ficaram estáveis em 6,9 milhões de ha, em relação ao mês anterior, mas 7,3pc abaixo da safra 2022-23. Algodão também cresce O Imea aumentou suas estimativas para o algodão em pluma 2023-24 para 2,6 milhões de t, alta de 2,4pc ante a projeção de abril, seguindo o aumento de mesma proporção na produtividade esperada. A produção está 9,5pc acima da registrada em 2022-23. A estimativa de produtividade aumentou para 291,1 sacas de 15kg/ha neste mês, ante 284,3 sc/ha na estimativa anterior, impulsionada pelas condições climáticas favoráveis nas fases finais da temporada, que possibilitaram um bom desenvolvimento da safra. O volume ainda está 6,4pc abaixo da produtividade de 2022-23. A estimativa de área plantada permaneceu em 1,4 milhão de ha, estável ante a projeção de abril e alta de 17pc em comparação com a área plantada no ano passado. Por Maria Albuquerque Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
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