Startups Move to Grab Electric Scooter-Sharing Market in Asia

Wall Street Journal writer Jake Maxwell Watts reported last week that, “Dozens of young companies burned through billions of dollars vying to dominate ride-hailing and bike-sharing in Asian megacities from Beijing to Jakarta. The race to transform urban transport is still on and now a fresh pileup looms—over electric scooters.

“The scooter-sharing industry is growing in U.S. cities and other developed markets such as Spain and France. As it moves to the Asia-Pacific region, local startups are moving early to grab market share, setting up a battle with global players like U.S.-based Lime.

Thirteen companies including Lime have applied for licenses to operate commercially in the city-state of Singapore, which they say is both an appealing market and a gateway to Southeast Asia, a region of 600 million people.”

The Journal article indicated that, “Some of the 13 already have begun operating in Malaysia, Thailand, Indonesia and Australia. China, which manufactures almost all the world’s electric scooters, has yet to see any significant growth in e-scooter sharing as transport providers there instead focus on the fast-growing markets for shared bicycles, and more recently, electric mopeds.

“Asia’s e-scooter market is nascent: It generates less than $10 million in annual revenues, according to India-based research firm Mobility Foresights, compared with about $315 million in the U.S. and $251 million in Europe.”

Last week’s article added that, “To many in the industry, the battle for dominance is reminiscent of ride-hailing, and some of the new startups are staffed or advised by ride-hailing veterans.

“Uber ultimately conceded defeat in both China and Southeast Asia, taking minority stakes in regional competitors Didi Chuxing and Grab Inc., respectively. The new e-scooter startups hope to emulate Grab’s success by understanding the needs of customers and regulators in a region that is less homogenous than Europe or the U.S.

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Program to Pay Minnesota Homeowners to Turn Their Lawns into Bee-Friendly Habitat

Minneapolis Star Tribune writer Greg Stanley reported last month that, “The state of Minnesota will help homeowners turn their lawns into bee-friendly habitat under a spending plan approved by the Legislature and sent this week to Gov. Tim Walz.

“The state will set aside $900,000 over one year to assist homeowners by covering much of the cost of converting traditional lawns by planting wildflowers, clover and native grasses in an effort to slow the collapse of the state’s bee population. The plan was trimmed down from the original House and Senate proposals, which would have provided funding for three years.

“The plan could help replenish food sources for pollinators of all kinds, but will specifically aim at saving the rusty patched bumblebee, a fat and fuzzy species on the brink of extinction that seems to be making its final stand in the cities of the Upper Midwest.”

The article noted that, “The program would cover up to 75% of the cost of each conversion project, and up to 90% in areas with a ‘high potential’ to support rusty patched bees.

Research at the University of Minnesota has shown that bumblebees are particularly important to the region. They land on flowering stems and vibrate at a frequency close to a musical C note, which unlocks pollen other insects can’t reach.”

“State Rep. Kelly Morrison, DFL-Deephaven, who introduced the bill in the House, said she hopes it will be ready for residents by next spring,” the article said.

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EPA To Allow Year-Round Sale Of E15 Gasoline

A news release today from the Environmental Protection Agency (EPA) stated that, “Today, [EPA] Administrator Andrew Wheeler signed the final action that would remove the key regulatory barrier to using gasoline blended with up to 15% ethanol (E15) during the summer driving season and reform the renewable identification number (RIN) compliance system under the Renewable Fuel Standard (RFS) program to increase transparency and deter price manipulation. Taken together, these steps follow through on the Trump Administration’s commitment to responsible environmental protection that promotes energy independence, regulatory reform, and increasing the use of biofuels to give consumers more choices, while supporting American farmers.

“‘Following President Trump’s directive, today’s action expands the market for biofuels and improves the RFS program by increasing transparency and reducing price manipulation,’ said EPA Administrator Andrew Wheeler. ‘As President Trump promised, EPA is approving the year-round sale of E15 in time for summer driving season, giving drivers more choices at the pump.’

“With today’s action, EPA is finalizing regulatory changes to apply the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 during the summer months so that it applies to E15 as well. This removes a significant barrier to wider sales of E15 in the summer months, thus expanding the market for ethanol in transportation fuel.”

The EPA update added that, “EPA is also finalizing regulatory changes to reform certain elements of the RIN compliance system of the RFS program to increase transparency and deter price manipulation in the RIN market. The reforms include requirements for public disclosure if a party’s RIN holdings exceed certain thresholds and additional data collections to improve EPA market monitoring capability. These new reforms will also help EPA continue to gather the information needed to decide whether further action is needed to ensure stability in the RIN market.”

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USDA Reminds Producers of Approaching Marketing Assistance Loan Deadlines

A recent news release from USDA’s Farm Service Agency (FSA) stated that, “[FSA] Administrator Richard Fordyce reminds producers of the May 31, 2019, deadline to apply for crop year 2018 marketing assistance loans for feed grains, upland cotton, soybeans and minor oilseeds.

“‘These commodity loans provide short-term financing, allowing producers to meet interim cash flow needs and market their crops following a timeline that is the most advantageous,’ Fordyce said.

“These marketing assistance loans are considered nonrecourse, meaning they can either be redeemed by repaying the loan or delivering the pledged collateral – i.e., the crop – at loan maturity to the Commodity Credit Corporation (CCC) as full payment. In circumstances where the county commodity price falls below the county loan rate, producers may repay loans at less than loan rate (principal) plus accrued interest and other charges, therefore, receiving a market loan gain. Alternatively, producers who are eligible for marketing loans are also eligible for Loan Deficiency Payments (LDPs) should the county price fall below the county loan rate.”

The news update added that, “Producers can check their daily LDP rates online at fsa.usda.gov.

“‘Although many producers may have already marketed their 2018 crops, it’s not too soon to begin thinking about harvest and marketing decisions for your next crop,’ Fordyce said.

“To apply for a loan, contact your local FSA office. To find your local office visit farmers.gov. Additional information is available at fsa.usda.gov/pricesupport.”

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Court: EPA Failed to Follow Administrative Procedures Act on WOTUS Rule

DTN writer Todd Neeley reported today that, “The 2015 waters of the United States, or WOTUS, rule may have suffered a final defeat, as a Texas court Tuesday granted a motion for summary judgement to the American Farm Bureau Federation that sends the rule back to EPA.

“The U.S. District Court for the Southern District of Texas ruled EPA violated the law in making changes in the final rule that were not proposed in the preliminary rule.

“‘The court finds that the final rule violated the notice-and-comment requirements of the APA (Administrative Procedures Act) and therefore grants summary judgment in favor of the plaintiffs on this ground,’ the court said in its ruling.”

Mr. Neeley noted that, “In drafting the 2015 rule, EPA relied heavily on a so-called draft connectivity report that included the agency’s analysis of numerous studies on the connected nature of the nation’s waters.

“After an EPA scientific advisory board issued comments on the draft connectivity report on Oct. 24, 2014, the agency re-opened the public comment period on the rule for one month.

“‘However, the agencies declined to do the same after issuing the revised version of the connectivity report on Jan. 15, 2015,’ the court said in its ruling.”

The DTN article added that, “On April 3, 2019, Texas Attorney General Ken Paxton asked the Texas court to issue a national injunction on the 2015 WOTUS rule, after a court in Ohio denied a similar motion earlier this spring.

“After a long series of court actions the past couple of years, a split remains between states still under jurisdiction of the 2015 rule and those that are not.

“At present, the rule is on hold in 28 states and in effect in 22.

“In the meantime, EPA continues to work on finalizing a new rule.”

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New Graduate: Set up my Start-up or Work for Somebody Else?

Earlier this month, Jonathan Black indicated in a column in The Financial Times that, “Students are being increasingly encouraged by universities and government to consider starting up their own business as a serious and viable career option. Incubators, accelerators and innovation centres are springing up in campuses, cities and science parks to support entrepreneurs and their start-ups.

It is not that the corporate role is safer, but for a new graduate it is probably the better option. At this stage in your career you need to build experience of how organisations work, and how complex it is to achieve change: for example to integrate new systems and processes into existing businesses.”

Mr. Black explained that, “Recent research reveals that the career path from founding a start-up to a new corporate role can be more difficult compared with moving from another corporate role. Tristan Botelho and Melody Chang, from Yale School of Management, discovered that 24 per cent of applicants with a corporate background were called for interview, compared with 14 per cent of those from a failed start-up, and just 11 per cent of those from a successful start-up.”

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USDA Announces Support for Farmers Impacted by Unjustified Retaliation and Trade Disruption

Des Moines Register writers Donnelle Eller and Stephen Gruber-Miller reported yesterday that, “The federal government will send another round of aid — $16 billion — to help farmers reeling financially by President Donald Trump’s ongoing trade war with China.

“The trade assistance package would send $14.5 billion in direct payments to farmers, U.S. Department of Agriculture leaders said Thursday.

“The president knows ‘that because of the agricultural trade surplus, our farmers, producers and ranchers will bear the brunt of these trade disputes disproportionately,’ said Sonny Perdue, the U.S. agriculture secretary.”

The Register article noted that, “The direct payments to farmers will be provided county by county, based on the acres of production, USDA officials said.

“‘We look at the trade damage each county is feeling,’ USDA Under Secretary Bill Northey said. ‘Then we divide that by the acres planted within the county, and then have a single-payment, no matter which of those crops you plant.’

“Those rates won’t be available until after planting intentions are made public in July or August, Perdue said.

“‘We want to make sure that farmers are planting for the market,’ said Northey, Iowa’s former agriculture secretary, adding that the payments won’t fully cover farmers’ losses from trade.”

The article also stated that, “It’s a shift from how the first $12 billion trade mitigation package was implemented. It provided direct payments based on production. USDA paid different rates, depending on the crop.”

“Sen. Joni Ernst, in a conference call with reporters Thursday, said the additional assistance from the federal government is helpful, but it’s important to open new markets and expand existing markets where farmers can sell their goods,” the Register article said.

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Crop Insurance Benefits Available to Military Veteran Farmers, Ranchers

A news release on Wednesday from USDA’s Risk Management Agency (RMA) stated that, “[RMA] today announced new benefits available to military veterans with farms or ranches who are seeking federal crop insurance coverage, including exemptions from fees and additional coverage options provided by the 2018 Farm Bill and effective for the 2019 crop year.

For veterans seeking crop insurance, the 2018 Farm Bill provides:

  • An exemption from paying the administrative fee for catastrophic and additional coverage policies;
  • An additional 10 percent premium subsidy for additional coverage policies that have premium subsidy;
  • The ability to use another person’s production history for the specific acreage transferred to veterans who previously were involved in the decision making or physical activities of crop production on the acreage; and
  • An increase in yield adjustment, from 60 to 80 percent of the applicable transitional yield.

“‘The 2018 Farm Bill provides improved benefits for military veterans interested in pursuing opportunities in production agriculture,’ said RMA Administrator Martin Barbre. ‘RMA offers great risk management tools for beginning farmers and ranchers, and we’re excited to now offer these tools to our veterans who have so selflessly served our country.'”

The RMA update added that, “On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. RMA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.

“For more information, visit rma.usda.gov or contact an approved insurance provider.”

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Potential Industry Deals in Agriculture on Hold as Trade War Continues

Bloomberg writers Mario Parker, Javier Blas, and Isis Almeida reported today that, “The agriculture deals buzz has gone quiet.

For a while, it looked as if the big trading houses that dominate agriculture were about to see their biggest shakeup in 20 years. Bunge Ltd. was targeted by rivals Glencore Plc and Archer-Daniels-Midland Co., while Louis Dreyfus Co. also explored potential deals. Meanwhile, mid-sized traders prepared to buy up any spoils that might roll out from any big merger.

Fast forward to today and the chatter of 2017 and 2018, involving deals worth as much as $15 billion each, has all but faded. Uncertainty surrounding the U.S.-China trade war and the U.S. presidential election have put big deals on hold, according to a dozen interviews with industry executives, bankers and consultants from Geneva to New York and Chicago.”

The Bloomberg article stated that, “The trade war, in particular, ‘makes it hard for anyone to make a decision,’ said Chris Shaw, an analyst at boutique research and broker firm Monness Crespi Hardt & Co. in New York.”

Today’s article added that, “Speaking in private, commodity executives say it’s difficult to value a business right now because it remains unclear how the world of farming will look until Washington and Beijing reach a trade deal.”

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Organic Food Sales Outpace Broader Market

Kristen Leigh Painter reported last week at the Minneapolis Star Tribune that, “U.S. organic sales continue to outpace the broader market, surpassing $50 billion for the first time last year, as pesticide-free, non-GMO products take a bigger slice of the total consumer dollars spent every year.

That rate is slowing from earlier this decade, a sign that the organic market is maturing and new types of health and wellness claims are fragmenting consumer spending.

“The annual survey, published Friday by the Organic Trade Association, is primarily composed of organic food sales, but includes a rapidly growing nonfood segment of personal-care products, household goods and pet food.”

“U.S. organic sales pass $50 billion mark for first time,” by Kristen Leigh Painter. The Minneapolis Star Tribune (May 17, 2019).

The Star Tribune article noted that, “Fruits and vegetables remain the largest driver, accounting for more than one-third of all U.S. organic-food sales.

“Organic’s second-largest sector, dairy, struggled in 2018 along with its nonorganic counterpart. Despite diet trends that shifted consumers away from dairy and eggs, organic sales in those categories eked out nearly 1% growth last year with $6.5 billion in sales.”

Ms. Painter added that, “Last year, organic-food sales grew 5.9% compared to 2.3% for total U.S. food sales.”

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