Tawnell D. Hobbs reported in today’s Wall Street Journal that, “A tiny spider-like creature that lives in caves on his property is causing a giant headache for Texas rancher John Yearwood.

“The Bone Cave harvestman, a blind arachnid found in Central Texas, has been on the U.S. endangered species list since 1988.

“But Mr. Yearwood wants the harvestman—which resembles a spider but technically is more of a cousin sometimes called a daddy longlegs—removed from protected status. He said its discovery on his land hinders the use of at least 35 acres north of Austin that has been in his family since 1871.”

From the January 6 edition of the Wall Street Journal.

Today’s article noted that, “‘It’s the government telling me that I, at my own expense, have to have a preserve for everyone in America,’ Mr. Yearwood said. ‘I pay taxes on the land every year. And there’s no way I can sell it—nobody will buy it.’

“Federal law prohibits modifications or degradation of habitats of endangered species that could impact their breeding, feeding or sheltering, except under federal permit. Those permits are mostly available for conservation and scientific purposes. Harming or harassing the species, physically or through noise or light is also prohibited.”

Today’s article added that, “[Mr. Yearwood] and other property owners have filed a lawsuit against the U.S. Fish and Wildlife Service, which oversees endangered species rules, to delist the harvestman, saying it isn’t endangered and is unnecessarily restricting use of their property. Mr. Yearwood’s suit also contends that the federal government is exceeding its authority by regulating ‘noneconomic activity.’

“Last month, the state of Texas threw support behind Mr. Yearwood in a friend-of-court brief filed in U.S. District Court in the Western District of Texas, calling the situation a ‘clear overreach in the use of federal power.’

“The rancher’s dilemma is a peculiar example of broader tensions in the West over federal oversight of land. In this case, the conflict confronts federal rules for privately owned land.”

Front page of the business section in today’s Des Moines Register.

An update yesterday at BartellPowell noted that some Midwestern senators had sought a meeting with President-elect Trump’s choice to head the Environmental Protection Agency, Oklahoma Attorney General Scott Pruitt.

The Senators were “seeking promises [that Pruitt] won’t gut federal policies that promote renewable fuels such as corn-based ethanol.”

Joseph Morton reported in today’s Omaha World-Herald that, “Nebraska and Iowa Republican senators seemed satisfied as they emerged Thursday from a meeting with President-elect Donald Trump’s nominee for the Environmental Protection Agency.

“Sen. Chuck Grassley, R-Iowa, arranged the sit-down to discuss the importance of renewable fuels with Oklahoma Attorney General Scott Pruitt, who has been critical of policies such as the Renewable Fuel Standard [RFS] in the past.

“Grassley and other senators indicated they liked what they heard.”

Mr. Morton noted that, “‘It was a very positive meeting,’ Grassley told reporters as he stood next to Pruitt. ‘As far as I know, every senator was very satisfied with the answers we got.'”

“‘I think the whole room is supportive,’ Sen. Deb Fischer, R-Neb., said. ‘He’s just open and honest.'”

Meanwhile, Donnelle Eller reported on the front page of the business section in today’s Des Moines Register that, “Midwest Republican senators got reassurances from EPA chief nominee Scott Pruitt that he will ‘follow the law’ that requires ethanol and biodiesel to be blended into the nation’s fuel supply, Sens. Joni Ernst and Chuck Grassley said.”

“‘He has no intention to undermine the RFS,’ Ernst said, adding that Pruitt ‘went a step further,’ criticizing the current EPA administration for missing deadlines that set RFS fuel blending requirements.”

Writing last month at U.S. News Online, Dawn Reiss indicated that, “Every year farmland is lost to urbanization. According to American Farmland Trust, a nonprofit that works to save farmland from development, the U.S. loses 40 acres of farmland every hour, with 37 percent of America’s developed land having been converted in the last three decades. In 2015, a little more than 2 million farms were left in the U.S. according to the USDA.

“For those who own it, it’s called ‘gold with a coupon’ since farmland pays rental income to investors who are collecting from farmers while generating capital appreciation that can be used to hedge against inflation.”

Ms. Reiss noted that, “Unlike real estate, which is tied to a local economy, some investors are using farmland to diversify their portfolios because returns tend to be immune to stock or bond fluctuations.

“‘It does have a fairly high cash yield compared to other asset classes with similar risks,’ says Greyson Colvin, managing partner and founder of Colvin & Co., an agriculture-focused investment manager in New York. ‘For institutional investors, this is a great alternative to treasury and corporate bonds.’

“But farmland is difficult to access. It’s privately owned in patchwork pieces across the U.S., much of which is sold at local auctions.

“‘There’s no way to access the best tracts unless you’ve got real expertise,’ [Eric O’Brien, co-founder and managing director at Fall Line Capital in San Mateo, California, a private equity firm specializing in acquiring and developing U.S. farmland] says. ‘We pass on 90 percent of the deals we see for physical or economic reasons. It’s a difficult asset to get your arms around.'”

The U.S. News article added that, “Anyone who invests in farmland should recognize that this is a long-term investment. Experts say many farmland investors fall into two categories – those who want to sell after a decade or so and those who look at this an intergenerational investment that can be inherited…[I]t’s important to understand the difference between annual row crops like corn, soybeans and wheat, and permanent crops such as almonds, peaches and grapes – anything grown in a vineyard or orchard.

“‘They have completely different investment risk and return characteristics,’ [Hunt Stookey, director of research and investment strategy for Ceres Partners, headquartered in South Bend, Indiana] says, citing the larger consistent global demand for row crops that contrasts the popularity boom-and-bust cycles many permanent crops face.”

Ms. Reiss also stated that, “Farming should be measured over cycles of 5 to 10 years and not over one crop. Colvin says his grandfather told him in a five-year period there will be one disaster crop, three adequate crops and one bumper crop that would sustain a farmer for that period.”

Joseph Morton reported on the front page of today’s Omaha World-Herald that, “Oklahoma Attorney General Scott Pruitt has a date with a group of Midwestern senators seeking promises he won’t gut federal policies that promote renewable fuels such as corn-based ethanol.

“Pruitt’s ability to assure those farm-state lawmakers during the meeting, scheduled for this afternoon, could determine whether he’s confirmed as President-elect Donald Trump’s pick to head the Environmental Protection Agency.”

Clip from the front page of today’s Omaha World-Herald.

Mr. Morton explained that, “Pruitt has criticized the agency for what he considers regulatory overreach — a position that thrills regulation-weary farmers and the Republican senators who represent them.

“But Pruitt also has criticized the agency’s Renewable Fuel Standard, echoing complaints from the oil industry that such a policy is simply unworkable. The RFS, which by law requires certain amounts of renewable fuels be blended into the gasoline supply, has been key to the explosive growth of the ethanol industry, particularly in Iowa and Nebraska — the No. 1 and No. 2 ethanol-producing states.”

Today’s OWH article added that, “[Deb Fischer (R., Neb.)] met with Pruitt separately on Wednesday. She said he assured her that he believes in following the law, which calls for the RFS to continue. She said she has heard some concerns from Nebraskans about Pruitt’s nomination.

“‘I’m hopeful that we’ll be able to put their concerns at ease in the nomination process,’ Fischer said.”

Since the drought of 2012, U.S. corn production has been robust, and corn used for ethanol has become an important demand variable in the corn balance sheet.

U.S. corn production has been robust since the drought of 2012.

Although stable for the past few years, corn used for ethanol is still an important component of demand and use.

Beyond corn, the Renewable Fuel Standard also has implications related to advanced biofuels and the biomass-based diesel volume requirement, which could have broader impacts on the soybean complex.

Purdue University agricultural economist Chris Hurt indicated yesterday at the farmdoc daily blog (“Weekly Outlook: More Pork in 2017 With Higher Hog Prices?“) that, “The latest Hogs and Pigs report released on December 23 indicated that pork supplies in 2017 will be larger than pre-report expectations.”

Dr. Hurt explained that, “Hog prices were extremely depressed in the final quarter of 2016 when live prices averaged about $37 per hundredweight. That was the lowest quarterly price since 2003. The lowest prices were in mid-November, touching the extremely low $30s. Recovery came quickly with prices rising to the lower $40s by the end of the year. For all of 2016 live hog prices averaged about $46.

“What will hog prices be in 2017? With three percent higher production one might expect annual prices to be lower, but there are additional items to consider. First, retail prices did drop in 2016, but there is opportunity for those prices to come down more. Lower retail prices will stimulate the quantity of pork that consumers purchase. Secondly, USDA expects exports to expand by five percent which will move more of the increased production to foreign customers. Finally, with the addition of new processing capacity, the farm-to-wholesale margins are expected to drop. Lower margins at the processing stage may contribute to stronger bids to hog producers.

“Live hog prices are expected to be about $48 in 2017, $2 higher than in 2016. By quarter prices are expected to average $45 in the first quarter, the very-low $50s in the second and the third quarters, and then $43 in the final quarter of 2017. A range of $2 higher or lower would be reasonable for price projections.”

Yesterday’s farmdoc update added that, “Pork exports to China will bear watching in 2017. Last year, exports to China nearly doubled growing to near 16 percent of total exports. Also of deep interest to the pork industry in 2017 will be the position of the new administration on trade issues and how that might impact agriculture. Mexico became the number one destination for U.S. pork in 2015 and 2016 so that trade relations with Mexico will need to be watched carefully for potential impacts on the hog market.”

A news release yesterday from the U.S. Department of Agriculture’s Farm Service Agency (FSA) indicated that, “Agriculture Deputy Under Secretary Lanon Baccam today announced that beginning Jan. 9, 2017, [USDA] will offer an early termination opportunity for certain Conservation Reserve Program (CRP) contracts, making it easier to transfer property to the next generation of farmers and ranchers, including family members. The land that is eligible for the early termination is among the least environmentally sensitive land enrolled in CRP.

“This change to the CRP program is just one of many that USDA has implemented based on recommendations from the Land Tenure Advisory Subcommittee formed by Agriculture Secretary Tom Vilsack in 2015. The subcommittee was asked to identify ways the department could use or modify its programs, regulations, and practices to address the challenges of beginning farmers and ranchers in their access to land, capital and technical assistance.

‘”The average age of principal farm operators is 58,’ said Baccam. ‘So, land tenure, succession and estate planning, and access to land is an increasingly important issue for the future of agriculture and a priority for USDA. Access to land remains the biggest barrier for beginning farmers and ranchers. This announcement is part of our efforts to address some of the challenges with transitioning land to beginning farmers.'”

Yesterday’s update noted that, “Normally if a landowner terminates a CRP contract early, they are required to repay all previous payments plus interest. The new policy waives this repayment if the land is transferred to a beginning farmer or rancher through a sale or lease with an option to buy. With CRP enrollment close to the Congressionally-mandated cap of 24 million acres, the early termination will also allow USDA to enroll other land with higher conservation value elsewhere.”

“Acres terminated early from CRP under these land tenure provisions will be eligible for priority enrollment consideration into the CRP Grasslands, if eligible; or the Conservation Stewardship Program or Environmental Quality Incentives Program, as determined by the Natural Resources Conservation Service,” the news release said.