Speaker 1: it is Tuesday september 6 2022. And this is D. C.
Speaker 1: Signal to noise since we last talked Russia decided not
Speaker 1: not to restart the flow of natural gas through the
Speaker 1: nord stream pipeline. You know, they completed the maintenance and
Speaker 1: just decided we don't have to turn it back on now.
Speaker 1: The biden administration has asked for another $47.1 billion. The U. S.
Speaker 1: Jobs state in august got a goldilocks label and the
Speaker 1: Iowa State Cyclones won their first game of the season
Speaker 1: and won it pretty easily. Thank God. All right, Jim Wiesemeyer,
Speaker 1: pro farmer policy analyst. Good morning Jim.
Speaker 2: The nationals have won three in a row, two against
Speaker 2: the Mets and one against my ST louis. Cardinals
Speaker 1: wow. Are they still playing
Speaker 2: baseball?
Speaker 2: Did you see,
Speaker 1: did you see that the cubs decided to go ahead
Speaker 1: and pitch the pool holes
Speaker 2: and you know, he's only five away I guess from
Speaker 2: another record serving them up.
Speaker 1: Unbelievable. Unbelievable. Welcome to you all. I'm glad that you're
Speaker 1: with us on this Tuesday morning. I'm agritalk host chip
Speaker 1: Flory
Speaker 1: uh Senate comes back to work today. The house is
Speaker 1: still on recess until september 13th jim. So we should
Speaker 1: start to see some movement on some of the critical
Speaker 1: uh issues that uh that that we have talked about
Speaker 1: in the past year. Uh
Speaker 1: the comments tab on your screen, click on that and
Speaker 1: you a dialog box will pop up, you can be
Speaker 1: involved in the conversation if you would like to be
Speaker 1: involved and melody, Good morning. It's good that you're back
Speaker 1: that like to see that jim let's start with the
Speaker 1: question that we had on
Speaker 1: the comments I believe just last week about the magnetosphere.
Speaker 2: Yes. What
Speaker 1: what did you learn?
Speaker 2: Well it's it's made the Earth hospitable. It protects us
Speaker 2: from the space weather, but it's weakened apparently about 10%
Speaker 2: or so over the last 160 years. So I guess
Speaker 2: the concern is that if it continues to weaken that
Speaker 2: it will affect
Speaker 2: the Earth uh whether cycles are or whatever that's kind
Speaker 2: of the bottom line is just something else to worry about.
Speaker 1: And there's a cycle to the strength of the magnetosphere, right?
Speaker 2: Yes. It can flip flop, it can flip flop. That
Speaker 2: that was made clear to me as well. Yeah.
Speaker 1: Yeah. That might be why we have periods of warming
Speaker 1: and periods of cooling in the country in the globe.
Speaker 1: But
Speaker 1: be
Speaker 2: careful how you say it
Speaker 1: just saying, I'm not saying no and I'm not denying,
Speaker 1: but I'm saying,
Speaker 1: alright. Uh some of the things that happened over the weekend,
Speaker 1: Russia will not restart the flow of gas to Germany
Speaker 1: as planned.
Speaker 1: Uh You were watching the the european energy markets yesterday
Speaker 1: jim tell us about it. U.
Speaker 2: K. Energy prices went up 30% intra market chip, they
Speaker 2: settled 10% higher and throughout Europe they've gone up, I
Speaker 2: mean and they were already sky high as you well
Speaker 2: know now the
Speaker 2: european officials are going to meet friday to approve a huge, uh,
Speaker 2: consumer aid package. And we're talking a lot of money
Speaker 2: chip to bring down the cost of electricity and gas.
Speaker 2: So this is affecting not only europe, but it will
Speaker 2: eventually affect the United States again, uh, as well, we've got, uh,
Speaker 2: uh, Brent crude over right around $92. So they're on
Speaker 2: their way up. In addition, opec plus, uh, monday, decrease
Speaker 2: their production by 10%. Not much, you know,
Speaker 2: 100,000, I shouldn't say 10%.
Speaker 1: 100,000.
Speaker 2: Yes, But it was the psychological, you know, factor there that,
Speaker 2: that helped, you know, surge prices as well.
Speaker 1: Oh, absolutely, Absolutely. Um, jim how serious
Speaker 1: we're talking about a huge amount of money that Putin is,
Speaker 1: is, um, um, saying that he could be generating a
Speaker 1: lot of money from the sales. Okay, by restarting the
Speaker 1: nord stream pipeline. The money is important to him. There's
Speaker 1: no question about that. How serious is he with this
Speaker 1: threat not to restart the flow?
Speaker 2: Very serious because their officials told the West they're not
Speaker 2: going to open the spigot again on North Stream one
Speaker 2: until the West, uh,
Speaker 2: uh, you know, lifts its sanctions. Well, it's not gonna happen,
Speaker 2: you know, very soon. So we're in this for the
Speaker 2: long haul. So connecting the dots chip, you've got Ukrainian
Speaker 2: president saying, hey, we need to accelerate our action in
Speaker 2: this war because Putin and Russia is in for the
Speaker 2: long haul. So all these are, are tied together and
Speaker 2: Russia for the first time really
Speaker 2: admitted uh in a report that I think Bloomberg was
Speaker 2: the first to report on of increasing degradation to their
Speaker 2: economy as a result
Speaker 1: the
Speaker 2: sanctions. So we're getting some truth now.
Speaker 1: Yeah, absolutely. I saw the, I found the numbers now
Speaker 1: from your your morning update. Uh it could cost Russia
Speaker 1: as much as 400 billion rubles, about $6.6 billion dollars
Speaker 1: a year and lost tax revenues,
Speaker 1: You know, with the kind of numbers that we tossed
Speaker 1: around in the US $6.6 billion. Does't sound like that
Speaker 1: much anymore. Jim.
Speaker 2: No, but you know, Russia's economy. It does. Plus they're
Speaker 2: going to it's going to grow on Russia because with
Speaker 2: them having to replace parts for for their manufacturing industry
Speaker 2: that they relied on
Speaker 2: the west. So they're going to be increasingly inefficient chip
Speaker 2: and they'll have to close some plants down as well
Speaker 2: that you're seeing also in in Germany increased in the future. Uh,
Speaker 2: So yeah, this is having a world impact and that's
Speaker 2: why the uh W. T. O. Uh general uh
Speaker 2: over the weekend was rather somber assessment on the outlook ahead,
Speaker 2: not only for trade volume, I think they're going to
Speaker 2: reduce it in the next few days but also on
Speaker 2: the impact of all these things. We've been talking about
Speaker 2: energy etcetera, how it will affect the entire global economy.
Speaker 1: So last week we talked about the plan to put
Speaker 1: a cap on Russian oil prices. Now it looks like
Speaker 1: there is a plan on how that cap is going
Speaker 1: to be enforced.
Speaker 2: Yeah. And two different dates I forget the exact dates.
Speaker 2: One it's december and the other one I think is
Speaker 2: sometime early
Speaker 1: next february.
Speaker 2: Yeah, in february. But you know, Russia holds the trump
Speaker 2: card I think on this one because they're gonna move
Speaker 2: even more of their volume if they do this. Okay,
Speaker 2: to Asia.
Speaker 2: And so unless you have the vast majority of countries
Speaker 2: in this coalition for this plan ship, I don't think
Speaker 2: it's gonna work. That's what the real good thinkers are saying.
Speaker 1: Okay, so the plan to enforce the cap is, there's
Speaker 1: a group of wealthy countries moving ahead
Speaker 1: with a plan to ban the insurance and financing of
Speaker 1: Russian oil shipments unless they're priced at a certain level
Speaker 1: or below.
Speaker 2: Yes. and 90% of their of their shipments are, you know,
Speaker 2: basically insured by Europe.
Speaker 1: Right,
Speaker 1: right, right. Absolutely. Okay. Questions are starting to come in, Michael,
Speaker 1: I see you there. He says, I am denying, I
Speaker 1: appreciate that. Gary Rasmussen comes in with has Putin made
Speaker 1: a de facto reserve energy currency.
Speaker 2: Uh,
Speaker 2: well, Putin before the invasion, uh, for years, for several years,
Speaker 2: built up Russian currency reserves. So I think you can't
Speaker 2: get away from the dollar that easily, but in part,
Speaker 2: he is tempered,
Speaker 2: Uh, you know, this with a, uh, a, uh, a
Speaker 2: pseudo energy currency to a degree. Not totally, but he,
Speaker 2: he cannot escape the world impacts because of the Russian
Speaker 2: economy for what 20 years? Well ever since the fall
Speaker 2: of the Soviet Union was becoming more geopolitical
Speaker 1: jim, I just recalled something that I think you said
Speaker 1: on the free for all on a great talk on
Speaker 1: friday
Speaker 1: when, when you said that that Russia will continue to
Speaker 1: move
Speaker 1: to Asia.
Speaker 1: You said on friday that Asia is then turning around
Speaker 1: and selling that Russian oil out into the global market.
Speaker 1: Is that happening? And how, how widespread is it?
Speaker 2: It's probably widespread. It's hard to track chip because even
Speaker 2: some of these ships now that they've found that, that
Speaker 2: their decoy ng, some of their signals so you can't follow.
Speaker 2: So it's, it's, it's, I think intelligent speculation, but because
Speaker 2: you're seeing the volumes go over to china and they
Speaker 2: can't even use it all. So yeah, they're making some profits.
Speaker 2: So china and India India especially.
Speaker 1: Okay. Uh Tanner makes a good point and Tanner came
Speaker 1: in with, doesn't Germany have inventories near their goal of 75%
Speaker 1: of last year's needs in regards to natural gas. I
Speaker 1: know that they have built up significantly their inventories. I
Speaker 1: don't know if it's all
Speaker 1: way to their goal yet. Is it?
Speaker 2: It's 85%,,
Speaker 1: 85%.
Speaker 2: So that tells you, yeah, they have made substantial progress
Speaker 2: now it depends on the temperature, it depends on their
Speaker 2: other actions, but it looks like they're you know, they're
Speaker 2: doing what they have to do.
Speaker 1: Okay. And then Melody came in with the point that
Speaker 1: that that I just made, sorry Melody Russia is selling
Speaker 1: oil
Speaker 1: uh, and guess to china that in turn is selling
Speaker 1: it to europe. We just discussed that.
Speaker 2: Yeah, that's just like our grain embargo. Remember the carter,
Speaker 2: grain embargo? Similar things happened. It's just it's just hard
Speaker 2: to track.
Speaker 1: Right? Right, okay. There's uh,
Speaker 1: e sunday L. A. B. Sundial says this is a
Speaker 1: big mass all fertilizer plants around the Baltic sea are
Speaker 1: shut down. We are now struggling to buy even if
Speaker 1: we want there is halting availability of fertilizer products around
Speaker 1: the Baltic,
Speaker 2: It's going to continue as an issue. Yeah. This fertilizer
Speaker 2: thing is not going to go away anytime soon. So yeah,
Speaker 2: we could be right back in the soup, you know,
Speaker 2: and look at you look at diesel prices while gasoline
Speaker 2: prices have come down rather significantly diesel is what over
Speaker 2: over five
Speaker 1: dollars. Yeah.
Speaker 2: So yeah, you're you're you're spot on
Speaker 2: fertilizer. Nobody knows with any significant odds of when the
Speaker 2: fertilizer market will be tempered. And so it'll be a
Speaker 2: plus side again for for, you know, world egg
Speaker 1: right? If you want some perspective on what's going on
Speaker 1: in the fertilizer markets, we had josh linville from Stone
Speaker 1: X Group. He is he's kind of the go to
Speaker 1: guy on a lot of fertilizer issues for many
Speaker 1: uh news outlets right now. But we had him on
Speaker 1: agri talk on Wednesday last week, give that conversationalist and
Speaker 1: I think it'll shed some light on exactly what's going
Speaker 1: on out there.
Speaker 1: Um okay let's talk a little bit more about Russia
Speaker 1: and their activities in Ukraine. What are they doing? Are
Speaker 1: they targeting a nuclear plant?
Speaker 2: You know, it's shut down over the weekend because they
Speaker 2: lost electricity so they had to fire it down so
Speaker 2: that just the odds are at least increasing of the
Speaker 2: dramatic impact on that chip. And that's all I really
Speaker 2: want to say because I'm gonna let uh the experts
Speaker 2: talk on that one. But the but the the outlook
Speaker 2: on that is not good. I also want to point
Speaker 2: out before I forget over the weekend, Russia approved
Speaker 2: uh giving Putin more freedom
Speaker 2: uh in countries that have Russian citizens now, I I
Speaker 2: don't want to hype it too much but just think
Speaker 2: of this, he can go into a country to help Russians,
Speaker 2: you know, much like he did in in uh in
Speaker 2: the Crimea, you know remember when he said he was
Speaker 2: just helping the Russian citizens so they gave him more flexibility.
Speaker 2: That's not a good sign,
Speaker 2: wow,
Speaker 1: Wow. Okay let's move to another spot. Another potential hotspot
Speaker 1: that everybody is watching and China has threatened over the
Speaker 1: weekend to take countermeasures after the Biden administration approved the
Speaker 1: sale of more than $1.1 billion dollars worth of arms
Speaker 1: to Taiwan. This is pretty much standard operating procedure stuff,
Speaker 1: isn't
Speaker 2: it? It is. And this is what the biden administration
Speaker 2: I think of
Speaker 2: um accurately said that this was uh you know, coming,
Speaker 2: this should not have been a surprise to china, but again,
Speaker 2: they're going into their party congress chip on october 16th
Speaker 2: so they have to appear that they're not backing down
Speaker 2: one iota to the United States. So I think this
Speaker 2: is more noise rather than any signal to me at
Speaker 2: this particular
Speaker 1: time.
Speaker 1: As long as we're talking china and and conflicts here,
Speaker 1: it looks like the White house is going to keep
Speaker 1: the trump era tariffs in place for a while. Right?
Speaker 2: Yes. U S. T. R U. S. Trade rep Put
Speaker 2: out a statement friday and they're going to call for
Speaker 2: more comments but this is just delaying it right now
Speaker 2: because you had a number of US manufacturers that wants
Speaker 2: to keep those tariffs on. So I think that the
Speaker 2: the way Washington, I don't care whether it's Democratic or
Speaker 2: Republican administrations,
Speaker 2: the way they think that they solve problems is just
Speaker 2: to extend something chip. So you know, they don't know
Speaker 2: really what they want to do on this one.
Speaker 1: Gotcha. Gotcha.
Speaker 1: Um Okay. The
Speaker 1: I feel like I need to back up to something. Jim.
Speaker 1: Where was it? I just saw them.
Speaker 2: Well
Speaker 1: yeah, no, we're gonna get there. We're going to get there.
Speaker 1: Oh I know what it was I know what it
Speaker 1: was when we talked about energy issues.
Speaker 1: We need we need to talk about the U. S.
Speaker 1: Commitment to restock the spr every time we talk about
Speaker 1: it
Speaker 2: now. Okay.
Speaker 1: What is the level of commitment?
Speaker 2: Well eventually yes but in in part of this package
Speaker 2: that the White House sent to Congress friday I think
Speaker 2: it was friday. I haven't seen much reporting other than
Speaker 2: on pro farmer yet. So others are gonna follow us
Speaker 2: up on this one.
Speaker 2: But in there they've requested 500 million more dollars for
Speaker 2: the Strategic Petroleum Reserve. So it will give them a
Speaker 2: longer time to refill it. And there's other reasons for
Speaker 2: the you know funding request for the S. P. R.
Speaker 2: But that caught my eye and some of the request
Speaker 2: so that answers your question last week. Chip is how
Speaker 2: soon will they start refilling it? I don't think it's
Speaker 2: any time soon.
Speaker 1: Okay.
Speaker 1: It
Speaker 1: it's got to be before the end of the
Speaker 2: Year it gets into by the end of fiscal 2023.
Speaker 2: That starts October one. That's kind of what the language
Speaker 2: kind of signaled.
Speaker 1: So
Speaker 2: they have a full year.
Speaker 1: Oh man.
Speaker 2: Yeah about 15 months.
Speaker 1: Yeah it's it's going to be a uh it's going
Speaker 1: to be a shock to the system when the when
Speaker 1: the U. S. Comes in and starts competing for for
Speaker 1: oil on the global market
Speaker 2: at that particular time. But they could always, you know,
Speaker 2: the emergency declarations. I mean the White House,
Speaker 2: I can probably say there's an emergency and or they
Speaker 2: could put another line in the coming uh you know,
Speaker 2: continuing resolution to give them more flexibility. Those are the
Speaker 2: things we you know, we're watching for.
Speaker 1: Okay, let's talk currencies here just real quickly because Adam
Speaker 1: had a question says good morning, good morning Adam, how
Speaker 1: significant is the dollar index cracking above 1 10?
Speaker 2: Uh The dollar strength which now continues to go higher.
Speaker 2: Uh The Wall Street Journal had an interesting article today
Speaker 2: saying that around the world, traders are flocking to the
Speaker 2: US equities market now because it's it's one of the
Speaker 2: few uh games in town uh knowing what's going on
Speaker 2: uh in in the rest of the world for some
Speaker 2: of the reasons we've already talked about
Speaker 2: Uh that that's giving us consumers more power, more flexible
Speaker 2: power for their buying power. So but yeah, you with
Speaker 2: the Fed going to increase interest rates probably seven another
Speaker 2: 75
Speaker 2: basis points september 21st the 20th and the 21st on
Speaker 2: the next FomC meeting, you're going to see a continued,
Speaker 2: well at worst, a stable dollar uh if not an increasing,
Speaker 2: you know, dollar strength. And you're seeing that in the
Speaker 2: girl that went under parody again
Speaker 2: and the british pound and the yen. Uh So yes
Speaker 2: that that's unless uh we have the G. Seven go
Speaker 2: in and and and settle this thing down again. But
Speaker 2: you can't rule out that either Jeff.
Speaker 1: Right. Right. Yeah. The dollar index this morning is up
Speaker 1: about 680 points at that 1, 10.20. I saw a
Speaker 1: comment last week that the dollar is so strong in
Speaker 1: Europe that even the Europeans have to call it soccer now.
Speaker 2: Yeah.
Speaker 2: And a number of americans are going to europe and
Speaker 2: to buying real estate and houses. So yeah, these are
Speaker 2: the things you see when currencies get out of alignment
Speaker 2: and it'll it'll come to the G. Seven attention. We've
Speaker 2: been through this before. What, several decades
Speaker 1: ago?
Speaker 1: Let's get to uh this one because this is a biggie.
Speaker 1: No question about it. The Biden White House has asked
Speaker 1: for $47.1 billion 11.7 billion in military and budgetary aid
Speaker 1: for Ukraine. Jim. This is gonna sound kind of cold
Speaker 1: and heartless.
Speaker 1: But another $11.7 billion mrs in Mississippi is tell them
Speaker 1: not to drink the water.
Speaker 2: Yeah. Yeah. Yeah that's it's it's a yeah that's gonna
Speaker 2: get them in trouble eventually if they keep it up.
Speaker 2: But this is a proxy war. This is not Ukraine
Speaker 2: uh fighting uh you know Russia by itself. This is
Speaker 2: the proxy war with the U. S. And in europe,
Speaker 2: you know that is clear. And administrations always uh you
Speaker 2: know suggest supplemental spending and they're usually very important things
Speaker 2: and this is one of them but still more aid
Speaker 2: for Ukraine but included in there with $6.5 billion chip
Speaker 2: for disaster aid
Speaker 2: up which a billion and a half is for crops
Speaker 2: and livestock disasters this year.
Speaker 1: Now,
Speaker 2: just as soon as we reported on that over the weekend,
Speaker 2: I got a flood of emails saying is that all
Speaker 2: that the er emergency relief program which will it'll probably
Speaker 2: be implemented that way that all that's going to total?
Speaker 2: No uh far
Speaker 2: state lawmakers have now have a history of increasing that
Speaker 2: once they get into the details of what we will
Speaker 2: eventually have a continuing resolution or a stopgap funding measure
Speaker 2: to be approved by the end. But by the end
Speaker 2: of this month chip, so we're gonna know, but I
Speaker 2: want to tell listeners we don't know the full amount.
Speaker 2: Uh Number two, it will probably go out via the E. R. P.
Speaker 2: Program because USDA now has the regulations for that. Uh
Speaker 2: they have history of that and they're able to get
Speaker 2: the money out uh in a more efficient manner. So
Speaker 2: again additional aid is coming and this would be multiple
Speaker 2: years now for the ag disaster aid which causes some
Speaker 2: questions in the
Speaker 2: crop insurance area that eventually is this gonna be a
Speaker 2: yearly program. And if so how will that affect farmers
Speaker 2: attitudes for toward buying crop insurance.
Speaker 1: Absolutely.
Speaker 1: Um
Speaker 1: And it's it's the amount of ad hoc spending on
Speaker 1: disaster programs has got to have an impact on the
Speaker 1: debate, the negotiations of the next farm bill.
Speaker 2: It will. Yes. Yes. Absolutely. But you know, I and
Speaker 2: uh in uh at the farm progress show G. T.
Speaker 2: Thompson
Speaker 2: uh had had a presser and he made clear that
Speaker 2: if if he is the new House ag committee chairman,
Speaker 2: if the republicans do take over the House uh an
Speaker 2: extension of the current farm bill is not an option chip.
Speaker 2: So he made that clear and that's the feeling we got.
Speaker 2: If you recall when I
Speaker 2: had dinner with him and his wife uh a month ago,
Speaker 2: I guess. Uh So he's following suit on that. But
Speaker 2: I'll tell you a farm bill is gonna it's, you know,
Speaker 2: after watching 10 of them uh first and foremost is
Speaker 2: they have to settle on how much funding is going
Speaker 2: to be available for food and nutrition.
Speaker 2: If you don't get that, you won't have a farm bill.
Speaker 2: We saw that the last farm bill. So there has
Speaker 2: to be, and it's usually a lot more money once
Speaker 2: you have that settled, then you can discuss, okay, how
Speaker 2: much funding is available and they're gonna request from the budget,
Speaker 2: you know, committees, additional funding above and beyond what the
Speaker 2: traditional farm bill baseline would look like. And I think
Speaker 2: they're gonna need it.
Speaker 1: Yeah, I think they're definitely going to need it, uh
Speaker 1: this look at what the uh federal payments,
Speaker 1: the ad hoc payments, the emergency relief payments have meant
Speaker 1: to total farm income. You had those numbers last week.
Speaker 2: Yes. And it was a dramatic change in their net
Speaker 2: farm and net cash income from what USDA forecast in february.
Speaker 2: I'm not faulting USDA, They didn't know some of these
Speaker 2: payments would be approved. They have to go on the
Speaker 2: on the policy existing at the time they make therefore
Speaker 2: cast. So yeah, this shows you the importance until we
Speaker 2: get hopefully settled down in the years ahead that you
Speaker 2: won't have to rely on these ad hoc payments that,
Speaker 2: but they're needed. I'll tell you, I get a lot
Speaker 2: of emails and calls where it's needed, it's needed significantly.
Speaker 2: And that happens to be the west west of the Mississippi,
Speaker 2: that's where
Speaker 1: it's needed.
Speaker 1: Yeah, I'm telling you jim. And even with the amount
Speaker 1: of money that has been spent in in the egg
Speaker 1: industry over the last 23 years, uh there are some
Speaker 1: that have still been left out.
Speaker 1: You know, and I'm looking at the hog industry and
Speaker 1: and some of those hog producers, they they experienced, you know,
Speaker 1: huge costs, huge costs that still have not been covered
Speaker 1: much of any. And I don't know if that's ever
Speaker 1: gonna happen.
Speaker 2: Well some has been covered, but not nearly enough to
Speaker 2: be fair, I don't think it's been equitable to the
Speaker 2: hog hog sector, some of this uh you know, financial assistance.
Speaker 2: And if that's the case, I know brian Grady chatted
Speaker 2: with me last week because he knows I have a
Speaker 2: lot of contacts in the hog industry
Speaker 2: and we're trying to confirm a rather a trend that
Speaker 2: we're picking up in some of our sources ship of liquid,
Speaker 2: some liquidation in the hog sector. And we're gonna, we're
Speaker 2: probably gonna see those numbers come into fruition
Speaker 2: in the latter part of this year.
Speaker 1: Right. Right. Um It uh yeah, that's exactly right. That's
Speaker 1: the bottom line there. It's in some markets, it's hard
Speaker 1: to get sales in right now. You make the phone call.
Speaker 1: It might be three weeks before you get cells into
Speaker 1: before you can move them. So Okay, just a couple
Speaker 1: of minutes left. What else are you watching closely this week?
Speaker 2: Well, I want to see action again on this continuing
Speaker 2: resolution in the White House budget request. We have the
Speaker 2: crop report coming out what september the 12th. So the
Speaker 2: key things there will be what if that second digit
Speaker 2: on the corn yield the trade is at a 71 72.
Speaker 2: About the pro farmer estimate had a six in there.
Speaker 2: Uh So that's the key. But even at 1 72
Speaker 2: corn prices will be uh you know, relatively firm. We're
Speaker 2: going to have to watch the acreage to see if
Speaker 2: nasa uh agrees with uh pro farmer, I think we
Speaker 2: went up about 500,000 acres
Speaker 1: on on
Speaker 2: soybeans and kept corn the same. And so uh
Speaker 2: Kind of we're gearing up their Australia Monday. Put out
Speaker 2: a huge wheat crop estimate and a good canola crop
Speaker 2: estimate as as well. So that that's what we're watching
Speaker 2: and of course Fed action coming up here on the
Speaker 2: 20th and the 21st.
Speaker 1: Okay. Very good. I'm going to have Jeff cooper from
Speaker 1: our F. A. The C. E. O. At R. F. A.
Speaker 1: On the show this morning
Speaker 1: talking about the administration's plans to come with a three
Speaker 1: year R. V. O. Renewable volume obligations.
Speaker 1: Is that even legal under the RFs jim.
Speaker 2: I think it's probably legal that
Speaker 1: that
Speaker 2: that they've given E. P. A pretty good flexibility which
Speaker 2: they should. And again as we discussed on agritalk on
Speaker 2: friday if they do that, it was first writer story
Speaker 2: if they if E. P. A releases three years that's
Speaker 2: good for the industry because then you can plan, there's
Speaker 2: always subject to changes as we get into that particular
Speaker 2: year
Speaker 2: because you know, market situation changes. But at least you
Speaker 2: can kind of plan a lot better than after the
Speaker 2: fact Jeff. We've gone what well over a year on
Speaker 2: some getting some of the final, you know, numbers for
Speaker 2: the R. V. O. S. Of the RFs.
Speaker 1: Right. Right. Yeah. So I'm looking forward to that conversation
Speaker 1: with Jeff. We'll get to some of the details and
Speaker 1: we can obviously talk about some of the other issues
Speaker 1: that are happening in the
Speaker 1: in the industry. Jim. I'll admit I might be a
Speaker 1: little distracted this
Speaker 2: week.
Speaker 1: I'm just saying it is beat Iowa week, it's Iowa
Speaker 1: Iowa state this weekend
Speaker 1: and and uh so I might be just a touch distracted.
Speaker 1: Hopefully I can hold it together until we get to
Speaker 1: the weekend and try to uh to figure it out.
Speaker 1: You know, I figure after the way the Hawkeyes played
Speaker 1: this weekend, I figure if we can keep them from punting,
Speaker 1: If we can keep them from punting we might stand
Speaker 1: a chance of winning the game. It's one of the
Speaker 1: strangest things. Have you ever seen a team get to
Speaker 1: seven
Speaker 1: With a field goal and two safeties
Speaker 2: that Yeah, it's not often
Speaker 1: and it's because of that punter. There's no question about it. Alright.
Speaker 1: Uh like I said, I've got Jeff cooper from our F. A.
Speaker 1: On this morning. Courtney uh up from the national pork
Speaker 1: board is also going to be on the show today.
Speaker 1: We've got a great lineup including
Speaker 1: I will be remote at a wetland at a wetland
Speaker 1: in Iowa Waverly Iowa on thursday this week. And the
Speaker 1: Iowa corn is uh is sponsoring that show. We're gonna
Speaker 1: be talking about some of the the benefits and um
Speaker 1: of wetland restorations and what it means for nutrient runoff
Speaker 1: and so on. So
Speaker 2: I want to be like that today. In fact, shortly
Speaker 2: after this program, I do my quarterly taxes UGG.
Speaker 2: And once again, it tells me that it's taxpayers that
Speaker 2: pay for all these transfer payments. The government just implements
Speaker 2: these programs. So
Speaker 2: my and other people's taxes help pay for needed things
Speaker 2: needed things. I'm not needed things.
Speaker 1: Let's let's spend wisely. Not, not just broadly, not just broadly.
Speaker 1: Let's spend wisely. Jim. Thank you so much, buddy. Have
Speaker 1: a great week. Keep watching for those signals.