Deere Cotton-Bale Packager Files ITC Complaint Against Chinese Companies’ Knockoff

Bloomberg writer Charlie McGee reported earlier this month that, “A company that develops packaging for cotton bales harvested with Deere & Co. tractors says it’s facing Chinese knockoffs and wants a U.S. trade agency to block the copycats from entering the country.

“Israel-based Tama Group and its U.S. unit filed a complaint on July 7 with the U.S. International Trade Commission saying two Chinese companies and their North American distributors are working together to sell cheaper replicas of a plastic wrapping Tama designed and patented more than a decade ago.

“TamaWrap is exclusively designed for John Deere tractors that Tama’s complaint says revolutionized cotton baling, enabling ‘a single machine to do what, until then, was impossible — harvest, collect, bale, and uniquely wrap cotton with a single machine and on-board wraps.'”

The Bloomberg article stated that, “The ITC complaint names Zhejiang Yajia Cotton Picker Parts Co. and its distributor, Arkansas-based Southern Marketing Affiliates Inc. It also names Hai’an Xin Fu Yuan of Agricultural Science and Technology Co. and its distributor, Canada-based Gosun Business Development Co.

“Tama says the companies’ knockoffs use its trademarked yellow color and are designed to uniquely work inside John Deere machines, but don’t work as well. The company received exclusive patent rights in the U.S. for the plastic cotton-baling material in 2004, and TamaWrap launched in the country in 2009.”

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Mortgage Rates Fall Below the 3% Mark

Orla McCaffrey reported today at The Wall Street Journal Online that, “In a year of financial firsts, this one stands out: Mortgage rates have fallen below the 3% mark.

The average rate on a 30-year fixed mortgage fell to 2.98%, mortgage-finance giant Freddie Mac FMCC -0.93% said Thursday, its lowest level in almost 50 years of record keeping. It is the third consecutive week and the seventh time this year that rates on America’s most popular home loan have hit a fresh low.

“The coronavirus pandemic has upended markets around the world—sending stocks on a wild ride and yields on U.S. government debt to record lows—but its effect on the 30-year mortgage is especially significant. Consider its history: In the early 1980s, it peaked above 18% after the Federal Reserve raised rates to fight runaway inflation.”

The Journal article noted that, “Below 3% is a ‘tremendous benchmark,’ said Jeff Tucker, an economist at Zillow Group Inc. ‘It’s also an indication that we remain in a crisis here.’

“The average rate on the 30-year mortgage stood at 3.72% at the beginning of the year and 3.81% a year ago, according to Freddie Mac.”

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Plaintiffs Ask Federal Court to Vacate Navigable Waters Protection Rule

DTN writer Todd Neeley reported earlier this week that, “The plaintiffs in one of several lawsuits challenging the Navigable Waters Protection Rule have asked a federal court to vacate the rule.

“In a motion for summary judgment filed at the end of last week, the South Carolina Coastal Conservation League alleges the EPA’s new rule is ‘arbitrary, capricious and unlawful’ and asked the U.S. District Court for the District of South Carolina to throw it out.

Agriculture, petroleum and other interest groups have intervened in the case, including the American Farm Bureau Federation, American Petroleum Institute, National Cattlemen’s Beef Association, National Corn Growers Association, National Pork Producers Council and U.S. Poultry and Egg Association, among others.”

The DTN article stated that, “The South Carolina Coastal Conservation League alleged in its lawsuit in April that the EPA and the U.S. Army Corps of Engineers completed the rule based on ‘political winds and currents.’

“The rule, published in the Federal Register on April 21, is alleged by the groups to have the effect of ‘dramatically reducing the universe of waters protected’ by the Clean Water Act.

“In its motion for summary judgment, the South Carolina Coastal Conservation League said the protection of the nation’s waters are at stake.”

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Latest Silicon Valley Start-Up Isn’t High Tech, so Much as an Old-School Alternative to the Farmers Market

Washington Post writer Heather Kelly reported recently that, “On a recent Friday night in one of the wealthiest neighborhoods in California, a line of eight idling cars stretched out across the shared parking lot of the still-closed library and arts center. Most of the drivers had their trunk popped open and a piece of paper pressed to their window with names of fruit scribbled in marker.

“They listed pounds of yellow and red cherries, flats of organic strawberries and blueberries, or a box of miscellaneous veggies. A team of teenagers loaded produce into the back of each car, completing the last phase of what’s become an elaborate weekly bulk-fruit and vegetable-selling operation that started with a post on Nextdoor.

“A passion for start-ups is still humming in Palo Alto, even as the heart of Silicon Valley goes into its fourth month of coronavirus restrictions. But its latest invention isn’t high-tech so much as an old-school alternative to the farmers market, with a pandemic twist. It doesn’t hurt that Silicon Valley is just a couple hours from the state’s produce-rich Central Valley, which produces a fourth of the food in the United States. That helps explain the bargain prices, such as $34 for 12 pints of organic strawberries.”

The Post article stated that, “Located near Stanford University, Palo Alto is home to companies including Tesla and Palantir. Its residents include founders such as Facebook’s Mark Zuckerberg and Google’s Larry Page, as well as a number of other tech billionaires, including Laurene Powell Jobs. It has one Whole Foods.

Local resident Maria Gregorio is the mastermind behind the bulk-fruit buy and pickup, which she calls Giving Fruits. She came up with the idea just before Mother’s Day after meeting a woman named Marisol Lopez who was selling bulk amounts of cherries she’d brought from a farm in Sacramento through social media. Gregorio, an IT professional at Stanford University, extended the offer to more people online and contacted other farms directly herself to expand the options.”

Ms. Kelly added that, “Gregorio is not alone in finding new ways to move food. People have been exploring different ways to get, share and sell food during the pandemic, including bartering, buying grocery staples from restaurants with wholesale contacts, and signing up for community supported agriculture, or CSA, boxes.”

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“Business Interruption” Insurance Issues Persist During Pandemic

Leslie Scism reported late last month at The Wall Street Journal Online that, “One of the biggest legal fights in the history of insurance has begun.

A cavalcade of restaurateurs, retailers and others hurt by pandemic shutdowns have sued to force their insurers to cover billions in business losses. A video berating the industry ran for most of June on a giant screen in New York’s Times Square, four times each hour around the clock.

“‘Insurance companies: Do the right thing,’ was the chorus at the end of the video. Repeating the words were a musician, a dancer, a chef, a rabbi, comedian Whoopi Goldberg—and a New Orleans plaintiffs’ lawyer, John Houghtaling II, who paid for the video.”

The Journal article noted that, “Millions of businesses across the U.S. have ‘business interruption’ insurance. The pandemic, no question, interrupted their businesses.

But insurance companies have largely refused to pay claims under this coverage, citing a standard requirement for physical damage. That is a legacy of its origins in the early 1900s as part of property insurance protecting manufacturers from broken boilers or other failing equipment that closed factories. The insurance is also known as ‘business income‘ coverage.

More than half of property policies in force today specifically exclude viruses. The firms filing the lawsuits mostly hold policies without that exclusion. Their argument for getting around the physical-damage requirement is that the coronavirus sticks to surfaces and renders workplaces unsafe.”

Ms. Scism also pointed out that, “Hundreds of lawsuits have been filed, and lawyers anticipate many more. Some plaintiffs’ lawyers speculate the issue could deal losses to insurers rivaling their liability from asbestos litigation about 30 years ago. That was about $100 billion, according to A.M. Best Co. A Wells Fargo Securities analyst puts insurers’ worst-case business-interruption liability at $25 billion, which would match losses from some Category 5 hurricanes.

“The volume of plaintiffs and variety of venues raise the chance of sympathetic judges or juries finding for small-business plaintiffs, some lawyers say.”

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Additional Commodities Eligible for Coronavirus Food Assistance Program

A news release yesterday from USDA’s Farm Service Agency (FSA) stated that, “Today, U.S. Secretary of Agriculture Sonny Perdue announced an initial list of additional commodities that have been added to the Coronavirus Food Assistance Program (CFAP), and that the U.S. Department of Agriculture (USDA) made other adjustments to the program based on comments received from agricultural producers and organizations and review of market data. Producers will be able to submit applications that include these commodities on Monday, July 13, 2020.  USDA’s [FSA] is accepting through Aug. 28, 2020, applications for CFAP, which helps offset price declines and additional marketing costs because of the coronavirus pandemic. USDA expects additional eligible commodities to be announced in the coming weeks.

“‘During this time of national crisis, President Trump and USDA have stood with our farmers, ranchers, and all citizens to make sure they are taken care of,’ said Secretary Perdue. ‘When we announced this program earlier this year, we asked for public input and received a good response. After reviewing the comments received and analyzing our USDA Market News data, we are adding new commodities, as well as making updates to the program for existing eligible commodities. This is an example of government working for the people – we asked for input and we updated the program based on the comments we received.’

“USDA collected comments and supporting data for consideration of additional commodities through June 22, 2020.”

Yesterday’s update added that, “Producers have several options for applying to the CFAP program:

  • Using an online portal, accessible at farmers.gov/cfap, allows producers with secure USDA login credentials—known as eAuthentication—to certify eligible commodities online, digitally sign applications and submit directly to the local USDA Service Center.  New commodities will be available in the system on July 13, 2020.
  • Completing the application form using our CFAP Application Generator and Payment Calculator found at farmers.gov/cfap. This Excel workbook allows customers to input information specific to their operation to determine estimated payments and populate the application form, which can be printed, then signed and submitted to their local USDA Service Center.  An updated version with the new commodities will be available on the website on July 13, 2020.
  • Downloading the AD-3114 application form from farmers.gov/cfap and manually completing the form to submit to the local USDA Service Center by mail, electronically or by hand delivery to an office drop box. In some limited cases, the office may be open for in-person business by appointment. Visit farmers.gov/coronavirus/service-center-status to check the status of your local office.”

 

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Global Merger and Acquisition Deal Volume About Half of 2020

Bryce Elder reported earlier this month at The Financial Times Online that, “It has been a rotten year for bid rumours and a rotten year for bids.

Global merger and acquisition deal volume nearly halved year-on-year in the first six months of 2020 to $1.1tn, according to Dealogic data. That is the lowest haul in at least 15 years. Reasons for the slump are obvious enough. Covid has erased revenues and played havoc with profit forecasts, while market volatility has outfoxed even the most predatory of buyers.

“Lockdowns have also had a chilling effect on the free flow of speculation. With bars closed and international travel rationed, the peripatetic types who trade stock market ideas found themselves with nowhere to go. And though chat continued over the encrypted messaging services, there was suddenly a lot less to talk about.”

The FT article noted that, “Life always finds a way, however, and the second half has already thrown up its first unlikely bid rumour: Apache, the Houston-based oil and gas company, was said to have been working with advisers on putting together a bid for UK peer Premier Oil. Both companies declined to comment.”

Mr. Elder added that, “Though stocks have rebounded on central bank support, the outlook for corporate earnings remains murky. But while credit keeps getting cheaper for companies that do not need it, there are still some easy pickings for buyers among those companies that do. What little M&A there is, will probably be confined to the bargain bin.”

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Judge Casts Doubt on Bayer’s Roundup Settlement

Wall Street Journal writer Sara Randazzo reported yesterday that, “A federal judge cast doubt on Bayer AG’s proposal to neatly resolve all future lawsuits over the safety of its Roundup weedkiller, potentially snagging the German company’s attempts to move past the massive liability.

“Bayer said recently it would pay up to $10.9 billion to settle tens of thousands of current Roundup cases and create a system for handling future cases. The deal came after three juries in recent years awarded large verdicts to plaintiffs alleging Roundup caused non-Hodgkin lymphoma, spooking investors.

But with Roundup still being sold and no plans to change the label or active ingredients, settling the litigation isn’t as easy as paying those who have already sued. Bayer proposed a novel type of class action to capture all future claims, which would be guided by the conclusions of a court-approved panel of scientists chosen to study Roundup’s potential carcinogenicity.”

The Journal article noted that, “U.S. District Judge Vince Chhabria in San Francisco, who must approve the class action, said Monday he was skeptical of the plan and likely to reject the idea. In a four-page order refusing to delay a July court hearing in the case, he questioned ‘whether it would be constitutional (or otherwise lawful)’ to hand the issue to a panel of scientists instead of judges and juries.

“The company’s shares fell by 5% Tuesday in Europe.

“‘In an area where the science may be evolving, how could it be appropriate to lock in a decision from a panel of scientists for all future cases?’ the judge wrote. Bayer had proposed giving the panel four years to study existing research on whether Roundup and its active ingredient, glyphosate, cause cancer.”

Ms. Randazzo added that, “Meanwhile, no one could bring new Roundup lawsuits, and if the panel found the weedkiller to be safe, it would essentially shut down any future cases. If the panel concluded Roundup was dangerous at certain exposure levels, lawsuits could go ahead, but those suing couldn’t seek any punitive damages.

“The judge said he also found it ‘dubious’ that news of the class action could possibly reach all farmer workers, gardeners and other Roundup users who haven’t gotten cancer yet and may want to sue.”

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USDA Improves Crop Insurance Policies with New Options

A news release yesterday from USDA’s Risk Management Agency (RMA) stated that, “[USDA] today announced changes to several crop insurance policies improving options for producers, including introducing a new Quality Loss Option, a new unit structure assignment option for Enterprise Units (EU) and new procedures for Multi-County Enterprise Units (MCEU).

“‘In addition to making the changes required by the Farm Bill, we are making updates to provide producers more flexibility and options. We continually listen to producers and other stakeholders, and we adjust these policies when necessary,’ said Martin Barbre, Administrator of [RMA]. ‘With these changes, producers will have more coverage choices.'”

Yesterday’s update noted that, “Specifically:

  • The new Quality Loss Option is in response to the 2018 Farm Bill that required the Federal Crop Insurance Corporation (FCIC) to research and develop methods of adjusting for quality losses. The new Quality Loss Option allows producers to replace post-quality production amounts in their Actual Production History (APH) databases with pre-quality production amounts, thereby increasing their actual yields for individual crop years.
  • For EUs and MCEUs, a new unit structure assignment option was added. Now, if the producer doesn’t qualify for separate EUs on both practices (EUs for both irrigated and non-irrigated practices, or EUs for both Following Another Crop (FAC) and Not Following Another Crop (NFAC) cropping practices, as authorized), an EU may apply to one practice meeting EU requirements and basic/optional units on the other practice.”
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USDA Announces Flexibilities for Producers Filing ‘Notice of Loss’ for Failed, Prevented Planted Acres

A news release last week from USDA’s Farm Service Agency (FSA) stated that, ” [USDA] is providing additional flexibilities for producers to file on acres with failed crops or crops that were prevented from planting because of extreme weather events. USDA’s [FSA] is adding these flexibilities for Notice of Loss on both insured and uninsured crops to enable Service Centers to best assist producers.

“‘With many program deadlines approaching, our Service Centers are working hard to accommodate as many producer appointments as possible,’ said FSA Administrator Richard Fordyce. ‘By providing flexibilities to our Notice of Loss policy, we can ensure we provide the best customer service.'”

The FSA update noted that, “For insured crops, producers who timely filed a prevented planted claim with the reinsurance company but filed a Notice of Loss (CCC-576) form after the deadline will be considered timely filed for FSA purposes. FSA can use data from the Risk Management Agency (RMA) for accepting the report of prevented planting with FSA. If the information is not available through RMA, the producer may also provide proper evidence to FSA that the prevented planted claim was timely filed with the reinsurance company.”

Last week’s update added that, “For failed acreage of uninsured crops, the Notice of Loss (CCC-576) must be completed, signed and verified before the disposition of the crop;” and, “A Notice of Loss cannot be filed for a crop before the final planting date, but it can be filed before completing the crop acreage report.”

“Producers who miss FSA’s July 15 acreage reporting deadline will not face a late filing fee if filed within a month of the deadline.

“For questions, please contact your FSA county office. To locate your FSA county office at your Service Center, visit farmers.gov/service-center-locator.”

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