Farm groups oppose duties on critical herbicide 2,4-D

Jul 17, 2024

NCGA leads call to rethink tariffs on vital agricultural chemical.

By Farms.com

The National Corn Growers Association and five other agricultural groups have sent a significant letter to the Department of Commerce, expressing deep concerns over the proposed tariffs on imports of 2,4-D herbicide. This action follows a petition by Corteva, which if approved, would limit the availability of a crucial farming input.

The letter underscored the potential wide-ranging effects on the agricultural sector, particularly at a time when farmers are grappling with historically high expenses and declining crop values.

With Corteva as the only significant domestic producer and current supplies unable to meet demand, the groups fear that tariffs would lead to critical shortages, undermining farmers' ability to maintain productive operations.

The coalition—which includes organizations like the American Soybean Association and the National Sorghum Producers—highlighted the timing as particularly detrimental. They cautioned that the financial burdens imposed by the tariffs could force reductions in farm spending, impacting yields and the economic vitality of farming communities.

As the Department of Commerce prepares to issue preliminary duty rates in September, the agricultural sector remains on edge.

The decision could dictate farming strategies and economic outcomes for numerous growers across the nation, underlining the crucial balance between protecting domestic industries and supporting agricultural productivity.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.