DTN writer Todd Neeley reported yesterday that, “Numerous legal challenges to the waters of the United States rule will be consolidated as a result of a federal court order Monday in the U.S. Court of Appeals for the Sixth Circuit in Cincinnati. The three-judge panel made the decision because of the sheer number of legal challenges filed.

“The Sixth Circuit ruled in April there would be no hearing of the full 23-judge court as requested by a group of petitioners led by the American Farm Bureau Federation.

“‘Although the administrative record is voluminous and the parties numerous, the petitions present a limited number of legal issues and the parties represent discrete sets of interests,’ the court said in the order Monday, indicating that ‘clarity and efficiency’ are important in the cases.”

Mr. Neeley explained that, “The waters of the U.S. rule, commonly called WOTUS, was meant to clarify U.S. Environmental Protection Agency and U.S. Army Corps of Engineers authority over areas around waterways where the federal government has authority to either require a federal permit or stop any activity that would disturb the waterway. Opponents claim the rule would give the regulatory agencies broad authority over basic farming practices simply because water may pool somewhere after a rain or fill a ditch.

“The battle over the rule continues to play out on several fronts. President Barack Obama vetoed legislation earlier this year that would have sent EPA and the Army Corps back to the drawing board in drafting a rule. On Thursday, a vote that would have prevented the agencies from implementing the rule got 56 votes but failed because it needed 60 votes to get into legislation.

“Without consolidation, the court said Monday, the cases would take much longer to resolve. The order is calling for all parties involved to now prepare briefs arguing the merits of the case.”

Geoffrey Mohan reported on the front page of today’s Los Angeles Times that, “Bryce Lundberg is elated, which is saying a lot for a California farmer these days.

“‘Hop on in,’ he says, wading into eight acres of ragged stalks, their seed tassels turning russet in the desert sun.”

Today’s article explained that, “Lundberg, 54, soon is chest-high in quinoa, a crop that is thriving in an unexpected place: on a patch of mediocre soil that lies below sea level in the scorching-hot Imperial Valley, more than 4,500 miles removed and some 10,000 feet down in elevation from its native range in South America’s Andes Mountains.

“If the harvest proves profitable here, California could dominate yet another niche crop, as the grain-like seed graduates from health-craze fad to a popular ingredient in energy bars, cereals and even drinks. Acreage dedicated to quinoa may reach into the thousands in the next two years in California, a state that already is a hub for quinoa imported from South America. That’s about where kale was in 2007 before it took off.”

Mr. Mohan noted that, “With a reputation for ruin and not much of a market, quinoa was a miracle food in need of a miracle until the mid-2000s, when food shows, social media and Oprah’s diets pushed it into the mainstream.

“That’s when California transplant Sergio Nuñez de Arco became the king of quinoa. A former development worker at the United Nations, Nuñez de Arco returned to Bolivia, where a few exporters were packaging quinoa in retail-sized bags under their own labels. Nuñez de Arco had more ambitious plans. He would pool the crops of subsistence farmers and create a reliable supply chain for big bulk shipments of quinoa, stretching from the Andes to California and beyond.”

The article added that, “In 2005, he sold only $25,000 worth of quinoa through his company, Andean Naturals. Today, the Yuba City importer sells $26 million from its facilities in Bolivia and about $40 million from other facilities, and recently partnered with agro-industrial giant ADM.

“‘That’s how you ended up seeing it in Trader Joe’s, Costco,’ he said. ‘Now, it’s in Quaker bars and Kellogg Special-K cereals.'”

Christopher Doering reported in today’s Des Moines Register that, “Farmers in Iowa and across the Corn Belt struggling to reach profitability this year got some good news from the U.S. Department of Agriculture on Tuesday.

“The USDA said producers are expected to grow a record 14.43 billion bushels of corn, and 3.8 billion bushes of soybeans, which would be the third best crop ever. While the bumper crops are likely to cap the possibility of a large rebound in prices anytime soon, the federal government surprised the market by increasing its estimates for feed usage and exports. Corn and soybean prices soared following the prospect of higher-than-expected demand.”

Mr. Doering added that, “USDA forecast average farm prices for corn and soybeans at $3.35 and $9.10 a bushel, respectively, in 2016. A year ago, cash prices for corn were $3.60 and soybeans $8.85. Iowa was the nation’s biggest producer of both crops in 2015.”

Today’s article noted that, “A prolonged slump in commodity prices has squeezed farm income, forcing some producers to cut spending or turn to their banks for help. Farm income this year is forecast to fall to $54.8 billion, its lowest level since 2002 and down 56 percent from the high of $123.3 billion just three years ago, according to the USDA.”

Jesse Newman reported in today’s Wall Street Journal that, “U.S. crop prices surged Tuesday, extending an unexpected run in agricultural prices that has drawn in big investors like hedge funds.

“The gains promise much needed relief for a farm economy battered by the slump in prices for major row crops over the past three years.

“At the same time, they could mean higher prices for consumers going into the summer.”

Ms. Newman explained that, “The catalyst was a closely watched government report that said rising exports would eat into the glut in farm commodities by next year. The big surprise was a projection that U.S. soybean inventories would fall by a steep 24%.”

“Corn futures rose 3.3% to $3.81 a bushel,” the Journal article said.

And Reuters writer Mark Weinraub reported yesterday that, “May 10 World and U.S. soybean supplies will be tighter than expected for the next two years due to reduced harvests in South America and rising global demand, the U.S. Agriculture Department said on Tuesday.

“The report jolted the soy market, with the most active Chicago Board of Trade futures soybean contract surging 4.5 percent and hitting its highest since August 2014. Soymeal futures rallied to a 16-1/2-month peak.”

A recent news release from Rep. Sanford D. Bishop (D., Ga.) indicated that, “Rural Business-Cooperative Service Administrator Sam Rikkers today announced a new resource to help food hubs improve their financial performance. A food hub is a business or organization that manages the aggregation, distribution, and marketing of locally-produced food which to satisfy growing demand for local products.

“The new resource is a report, Running a Food Hub: Assessing Financial Viability, that includes information on how food hubs can maximize profits and control costs. It is part of a multi-volume series published by USDA Rural Development. The report gives technical assistance for food hubs at different stages of development. For example, it provides beginning food hubs with expertise on writing sound business plans. The report includes guidance on how established food hubs can expand into financially viable long-term businesses.”

The release added that, “Rural Development’s efforts to support food hubs and other regional food enterprises are part of USDA’s Know Your Farmer, Know Your Food Initiative (KYF). The initiative breaks down barriers that prevent rural ag producers from connecting with communities and consumers, including those in urban and metro areas. In addition to providing more market opportunities for rural ag producers, it provides rural businesses with assistance in areas such as processing, aggregating and distribution that help bring their products to market.”

A recent survey from Iowa State University (ISU) Extension indicated that cash rents in Iowa have decreased slightly in 2016.

More specifically, the ISU publication included the following table and map:

The Belleville News-Democrat reported Online last week that, “Hog producers in Illinois have already filed half as many expansion notices with state regulators as they did all of last year.

“According to the state Department of Agriculture’s website, there were 61 intent-to-construct applications filed so far in 2016. There were 122 such applications for the entirety of 2015.

“Final regulatory say on new Illinois hog farms is with the state Department of Agriculture, which notes there are usually 100 to 120 applications for new and expanded hog operations each year.”

The article indicated that, “Phil Borgic, who has a hog operation near Raymond, said the expansion is being driven by demand from consumers and improved pork prices. He said exports to Asia have played a part in heightening demand for pork from the state.”

“In 2012, Illinois was the fourth-biggest state for hog production with $1.5 billion in annual sales, per the most recent census of the U.S. Department of Agriculture.”