Final Amendments to USGSA

The U.S. Grain Inspectors, Packers, and Stockyards Administration has issued final amendments to its rule on implementation of the U.S. Grain Standards Act. As you will recall, NAEGA and NGFA submitted comments to these proposed amendments in April. In response to the comments received, GIPSA has issued final amendments that include:

  • Definition of Emergency – GIPSA Changed proposed definition of Emergency from “Any situation outside of the control of the Service or a delegated State that prevents prompt issuance of certificates in accordance with Sec. 800.160(c).” to “Any situation that is outside the control of the applicant that prevents official inspection or weighing services within 24 hours of the scheduled service time.”
  • Request for Emergency Waivers – GIPSA is omitting the proposed sections 800.118(b)(7)(B)&(C) from the final rule and is not adding a new blanket category of waivers for situations in which the buyer and seller agree to waive official inspection or Class X Weighing.
  • User Fees – GIPSA agrees with our proposal for setting the trigger for adjusting fees at the midpoint of 4.5 months. Didn’t agree with our suggestion to eliminate the cap on Schedule A fees. Also, GIPSA believes that an annual review of fees wouldn’t be worthwhile. As a result, will continue to review every 5 yrs. As you recall, they already have suspended the 530 account (officially designated agencies).
  • 72 Hour Advance Notice of Declination of Service – GIPSA didn’t incorporate our recommendation that delegated states impact all impacted export port locations 72 hours in advance of intent to discontinue service. According to GIPSA, based on the Reauthorization Act language only they, not the delegated state are to inform either Congress or the impacted party of the disruption.
  • Delegated States and GIPSA Review – GIPSA “intends” to begin the formal review process prior to Sep. 30, 2016. In addition, GIPSA finds the inclusion of language stating that the process be done through appropriated funds, “unnecessary,” since delegation reviews fall under compliance related activities which are already covered by appropriated funds.

More detailed analysis will be shared when it becomes available. Please contact Gary or Ryan for more information.

OECD/FAO Agricultural Outlook

The Organization for Economic Cooperation and Development (OECD) and the Food and Agriculture Organization (FAO) have released their 2016-2025 Agricultural Outlook. In this year’s Outlook OECD/FAO indicated that it sees the period of high prices in crops, livestock and fish products to be largely over, and a new normal of lower prices to set in over the next few years. Demand for agricultural products will continue to be driven by growth in developing countries, whose increasing consumption will reduce the global proportion of people who are malnourished from 11 percent to 8 percent. It is projected that this rising demand will be satisfied through increased productivity gains, with some of the largest gains coming from Sub-Saharan Africa. In Sub-Saharan Africa yield will surpass area growth on this larger production.

The OECD/FAO estimates that demand for cereals will continue to stagnate except in the demand for feed crops and inputs for oils. Over the next decade demand for global trade in grains will be led by growth in feed grains and soybeans, reflecting the increased demand for meat products and oils.

For more information on the results of the report, please visit the Outlook’s website, here.