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French soft wheat areas to fall to a low in 2024: Argus

  • : Agriculture
  • 23/12/20

Planted areas for French soft wheat are expected to fall to their lowest this side of the millennium, after two months of heavy rain undermined crop conditions.

Argus estimates the planted acreage for France's next soft wheat crop at 4.238mn hectares (42,380km²), based on results from its annual survey of French crop planting. Argus collected feedback from more than 1,200 farmers across France during the week of 7-14 December.

The figures include an estimated 54,500ha of late planting that farmers are due to sow in the coming days, and overall represent a drop of 530,000ha compared with the current marketing year's crop.

A similar scenario occurred ahead of the 2020-21 marketing year, when heavy rainfall in the autumn of 2019 resulted in 4.27mn ha of soft wheat being planted for the 2020 harvest — a year-on-year fall of 731,000ha.

Argus' latest survey found that all regions in France are expecting a year-on-year drop in planted areas for soft wheat. The areas with the highest rainfall over the past two months are largely expecting the largest drop in planted areas. The region of Nouvelle-Aquitaine suffered the greatest impact, with 445mm of cumulative rainfall over the past two months cutting areas by an estimated 29pc.

Other regions recorded 208-355mm of rainfall from 15 October to 14 December.

In addition to Nouvelle-Aquitaine, other areas in the west and south of France — Pays de la Loire, Occitan and Provence Alpes-Cote d'Azur — are expected to see planted areas fall by 20-26pc on the year.

The northern regions of Normandy, Hauts-de-France, Ile-de-France, Centre-Val de Loire and Brittany, which also suffered heavy rainfall, can expect planted areas to be cut back by around 10pc on the year.

Only the east of the country is expected to see cuts to planted acreages of 5pc and below compared with a year earlier.

As for crop conditions, crops are faring best in northeast France, where wheat was sown in early October and was able to establish itself before rain set in.

Rapeseed

Argus estimates France's planted rapeseed areas at 1.341mn ha, slightly below 1.35mn ha last season.

The rapeseed crop has generally fared much better than winter wheat. But crop conditions are worth monitoring, given a particularly low yield in 2020, when a dry spring followed wet weather in the autumn.


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24/07/03

EU’s centre-right EPP mulls Green Deal tweaks

EU’s centre-right EPP mulls Green Deal tweaks

Brussels, 3 July (Argus) — The European Parliament's largest group, the centre-right EPP, is working to complete the bulk of its strategy programme on 4 July at a meeting in Portugal. Key elements in the party's 2024-29 policy agenda include significant changes to the bloc's climate and energy policy for 2030. A draft of the five-point policy plan lists revising CO2 standards for new cars and vans to "allow for the use of alternative zero-emission fuels beyond 2035". The EPP also calls for a new e-fuel, biofuel and low-carbon fuel strategy "with targeted incentives and funding to accompany the EU hydrogen strategy". Additionally, the EPP wants the incoming European Commission to create a "single market for CO2" with a market-based framework for carbon capture and storage (CCS) and carbon capture and utilisation (CCU), through an accompanying legislative package similar to that adopted for the EU's gas and hydrogen markets. The strategy document discusses a "Green Growth Deal" aiming to achieve the EU's 55pc emission reduction target by 2030 — from 1990 levels — and climate neutrality by 2050, while boosting the EU's competitiveness and ensuring technological neutrality. The draft document emphasises the need to transition "away from fossil fuels towards clean energy", also by ramping up international hydrogen production. And the draft advocates for a "simple, technology-neutral, and pragmatic definition for low-carbon hydrogen" in upcoming technical legislation from the commission. More controversial points include postponing application of the EU's deforestation regulation and addressing problems related to its implementation. The EPP also wants to split the EU's industrial emissions directive into "industrial and agricultural parts", conduct a "full-scale" inquiry into why farmers are not receiving fair prices for their products, and require robust impact assessments for the economic viability of farms for any new animal welfare proposals. The group's members of parliament are meeting until 5 July. Commission president Ursula von der Leyen is also attending. She was [recently nominated](https://direct.argusmedia.com/newsandanalysis/article/25825320 by EU leaders for re-election. The EPP programme will significantly influence policy priorities that von der Leyen would support, if she is approved by an absolute majority of 361 votes at a session in Strasbourg on 15-18 July. But von der Leyen may need to drop more controversial points to secure a majority with liberal, centre-left and green support. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

IGC keeps Australian grain output, export forecasts


24/07/02
24/07/02

IGC keeps Australian grain output, export forecasts

Sydney, 2 July (Argus) — The International Grains Council's (IGC) projections of Australia's grain production and exports in 2024-25 remain largely unchanged, despite rainfall in major cropping areas in June. The IGC revised its forecasts for Australia's 2024-25 grain production slightly downward from May by 125,000t to 45.5mn t, and exports by 50,000t to 31.7mn t. Wheat production and exports remained unchanged at 30.1mn t and 21.5mn t, respectively. The Bureau of Meteorology (BoM) June rainfall summary showed national rainfall at almost 10pc above the 1961-1990 average. National area-averaged mean temperature was 0.71 degrees higher than the 1961-1990 average. Rainfall was above average for most of Western Australia in June, or in the top 10pc of June months since 1900, supporting crop germination and development. Areas near the Geraldton cropping region — which accounts for approximately 22pc of WA's wheat crop area — received their highest rainfall on record, according to BoM data and the Grain Industry Association of Western Australia (Giwa) estimates. The seasonally late major rainfall event delayed the state's crop development, but warmer soil temperatures accelerated crop growth. That put the state back on track for at least an average year as opposed to a well below average year, Giwa said in its crop report released in early June . Rainfall remained below average in parts of WA's Albany and Kwinana South cropping regions in June. Dryness in June was even more severe in southern New South Wales (NSW) and Victoria, which received below average or very much below average rainfall in June. The Australian Bureau of Agricultural and Resource Economics and Sciences (Abares) noted earlier in June that yield expectations in NSW's southern cropping regions were highly contingent on sufficient and timely rainfall. Abares expects the state's overall winter crop to yield 2.5 t/hectare in 2024-25. The IGC did not change its 2024-25 world grain output projection in June from 2,312mn t in May. Global carryover stocks in 2024-25 were revised upward by 2mn t, but remained the lowest in a decade at 582mn t. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Denmark to launch carbon tax on agriculture from 2030


24/07/01
24/07/01

Denmark to launch carbon tax on agriculture from 2030

Dalby, 1 July (Argus) — The Denmark coalition government has introduced the world's first carbon emissions tax on agriculture, which will take effect from 2030. The agreement was reached on 24 June after five months of negotiations between the Government of Denmark, the Danish Agriculture and Food Council, the Danish Society for Nature Conservation, the Confederation of Danish Industry, Danish trade union NNF that organises workers within the domestic slaughterhouse and meat industry, and association Local Government Danish. Farmers will have to pay 120 Danish kroner/t ($17.30/t) of emitted CO2 equivalent from livestock from 2030, rising to DKr300 from 2035 onwards. Revenues from the tax will be channelled back to the sector and reinvested into green initiatives, climate technology, and production transformation, targeting agricultural sectors facing the most difficulty transitioning, according to the British Agriculture Bureau (BAB). Copenhagen is a significant exporter of pork and dairy, and agriculture is currently expected to account for 46pc of emissions by 2030. Experts believe the carbon tax will cut these emissions by 1.8mn t in 2030, its first year of operations, enabling Denmark to meet its target of cutting 70pc of its total emissions by that year, according to BAB. Resistant farmers have brought traffic to a standstill in European capitals several times this year, in protests for EU leaders to remove rules designed to clean up the agriculture sector. New Zealand in late 2023 delayed the introduction of a proposed tax on cow emissions which was set to start at the end of 2025, but the newly elected New Zealand government in June cancelled the plan to tax livestock producers on methane production. The then New Zealand government had forecast the levy would have reduced the amount of methane released by livestock into the atmosphere by as much as 47pc by 2050, without disclosing the baseline year. By Jessica Clarke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US House panel advances waterways’ projects bill


24/06/27
24/06/27

US House panel advances waterways’ projects bill

Houston, 27 June (Argus) — A Congressional committee on Wednesday advanced a bill to authorize a bundle of US port and river infrastructure projects for the US Army Corps of Engineers (Corps). The Water Resources Development Act (WRDA) biennially authorizes projects handled by the Corps' civil works program aimed at improving shipping operations at the nation's ports and harbors, and along the inland waterway system. The traditionally bipartisan legislation also approves flood and storm programs, and work on other aspects of water resources infrastructure. The House of Representatives' Transportation and Infrastructure Committee on Wednesday passed the bill by a 61-2 vote. The Senate Committee on Environmental and Public Works passed its own version of the bill on 22 May by a 19-0 vote. Neither the full Senate nor House have yet voted on the bills, which will need a conference committee to sort out different versions. A key difference is that the House bill did not include an adjustment to the cost-sharing structure for lock and dam construction and major rehabilitation projects. The Senate measure adjusted the funding mechanism so that 75pc of costs would be paid for by the US Treasury Department's general fund, with the rest coming from the Inland Waterways Trust Fund. The 2022 version of the bill made permanent an increase to 65pc from the general fund and 35pc from the trust fund, which is funded by a barge diesel fuel tax. The House committee's decision not to include the funding change drew disappointment from shipping interests. The Waterways Council was "disappointed that the House did not include a provision to modernize the inland waterways system", but was hopeful that conference negotiations would result in its inclusion, Tracy Zea, chief executive of the group, said. The latest House version of the bill authorizes 12 projects and 160 new feasibility studies. Among the projects receiving approval were modifications to the Seagirt Loop Channel near the Baltimore Harbor in Maryland. The federal government would pay $47.9mn towards an estimate $63.9mn project to widen the channel, which would help meet future demand for capacity within the Port of Baltimore. That would include increased container volume at the Seagirt Marine Terminal. The project was in the works before the 26 March collapse of the Francis Scott Key Bridge temporarily diverted freight from Seagirt and many other port terminals. The committee also authorized $314.25mn towards a resiliency study of the Gulf Intracoastal Waterway. The study would consider hurricane and storm damage and identify ways to improve navigation, reduce the maintenance requirements, and provide resiliency. The waterway connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. The House version of the bill also includes provisions to strengthen flood control, wastewater, and stormwater infrastructure. "Critically, WRDA 2024 will help communities increase resiliency in the face of climate change," representative Rick Larsen (D-WA) said. By Abby Caplan and Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

ExxonMobil exits, Vitol enters California RD project


24/06/26
24/06/26

ExxonMobil exits, Vitol enters California RD project

New York, 26 June (Argus) — A company hoping to construct a 15,000 b/d renewable diesel refinery in Bakersfield, California, this year has settled a dispute with ExxonMobil and inked a new offtake deal with Swiss commodity trader Vitol, providing a reprieve for a project that has been financially stressed. Global Clean Energy Holdings will pay ExxonMobil $18.2mn as a one-time settlement and cancel all 125,000 shares of Global Class C preferred stock that the US oil major had owned, according to a regulatory filing on Wednesday. Two ExxonMobil employees have exited the Global Clean Energy board. The two companies will also ask the Delaware Court of Chancery to dismiss a complaint brought by ExxonMobil that alleged wrongdoing. ExxonMobil had previously moved to cancel an offtake agreement to purchase much of the plant's expected output, citing various production delays, and asked the Delaware court to compel the release of Global internal files. A Global subsidiary has entered into a new agreement with Vitol, in which the trading firm will be the "exclusive supplier of renewable feedstocks" to the Bakersfield plant and "exclusive offtaker" of all renewable diesel and naphtha produced by the facility and its associated environmental attributes, according to the filing. The two companies also entered into a revolving credit agreement, which provides Global with a working capital loan of $75mn. Global Clean Energy has said it wants the facility's primary feedstock to be camelina oil, which would be more able to capitalize on low-carbon fuel incentives because it comes from a cover crop. But the company said in an April regulatory filing that it expects to use only a "minimal amount" of camelina oil in 2024 and 2025. The filing on Wednesday also lists soybean oil, canola oil, and various waste feedstocks, such as used cooking oil, as potential feedstocks Vitol could supply. The agreement with Vitol provides fresh hope for the long-delayed Bakersfield project, one of a handful of renewable fuels facilities that have set plans to come online in California. Global Clean Energy as recently as last month warned there was "substantial doubt" about its ability to survive, given its debt obligations and the uncertain timing for completing its facility. Vitol can terminate the supply and offtake agreement, which is otherwise set to last for three years and can be extended for two more, if the project is not producing at least 5,000 b/d of renewable diesel by 31 October this year. Global Clean Energy declined to provide more details on its construction timeline today but said in a regulatory filing last month that it planned to commence "the start-up phase" of the project this month and begin initial commercial operations during the third quarter. The facility, if completed, could face additional headwinds. Declining prices over the last year for federal renewable identification numbers (RINs) and California low-carbon fuel standard credits have depressed margins for renewable diesel producers. And the growth of biorefineries in the state — including Phillips 66's Rodeo facility that the company said Wednesday is running at full capacity — could mean steep competition for feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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