Latest News
-
Draft shows EU wants to cap farming subsidies in budget overhaul
Brussels will propose capping the EU subsidy a single farm can receive every year in an effort to redistribute massive farming subsidies to smaller businesses. A draft European Commission proposal, seen by, revealed this. The document will be part of the Commission’s proposal for the next budget of the European Union, which is due to appear on Wednesday. The EU's massive Common Agricultural Policy (CAP), which provides farming subsidies, is worth approximately 387 billion euro ($451 billion) today. This represents a third the entire budget of the EU for 2021-2027. According to the draft, the Commission's proposal would try to redistribute subsidies to smaller farms by capping the amount of income-based support that they can receive at 100,000 euros per annum. The amount of money paid per hectare would be gradually reduced for those who receive the most. The draft stated that, for example, if a farmer receives area-based income assistance above 20,000 Euros per year, their payments will be reduced by 25%. Payments above 50,000 Euros per year will be cut in half, and payments over 75,000 euro by 75%. It is not the first attempt by Brussels to cap subsidies and limit payments to large landowners or agroindustrial companies. In the previous CAP approximately 80% of payments were made to only 20% of beneficiaries. Previous proposals were rejected by EU countries concerned about their agricultural industries. The new budget for the period 2028-2034 must be approved by the EU countries as well as the European Parliament. A spokesperson for the Commission did not respond immediately to a comment request on the draft. It could be changed before publication. The draft would establish EU-wide, overarching green targets, which farmers must achieve to qualify for subsidies. However, it would also oblige countries to set local, additional conditions. The draft stated that "the new CAP will be a simplified and more targeted Union Common Policy, with greater flexibility for farmers, and a move from requirements to incentives." The draft didn't confirm the size of a new CAP. The core of the new CAP would remain direct income support to farmers. This would be "ring-fenced", meaning that it could not be used for anything else. The proposal would combine the CAP's two-pillar structure to one fund, a move that is opposed by influential European farmers' group COPA-COGECA. ($1 = 0,8574 euros) Reporting by Kate Abnett Editing Tomaszjanowski
-
US Judge delays the transfer of Argentina's 51% YPF stake in order to allow an appeal
A U.S. Judge on Monday temporarily halted the enforcement of her order requiring Argentina's 51% stake in the oil and gas company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District judge Loretta Preska, while criticizing Argentina's actions and extending the deadline for the completion of the turn-over by three days until July 17, has pushed back Monday's deadline. She stated that the delay was only to allow Argentina to file a complaint with the 2nd U.S. Circuit Court of Appeals of Manhattan. Argentina filed an Emergency appeal On July 10, the court heard a case. Preska refused to extend the stay. She stated that Argentina "continues its delay and circumvention of its obligations" in relation to the $16.1 billion judgement, citing legislation to prevent the YPF turn over. The Manhattan-based Manhattan judge wrote: "The Republic has abused court accommodations and will not receive additional ones." Requests for comment from an attorney and Argentina's representatives were not immediately responded to. The three-day extension is a temporary relief to the cash-strapped nation, which warned that its economy would be unstable if forced to sell the YPF stake. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Burford's U.S. lawyer and Burford did not respond immediately to requests for comments on the Monday order. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina appeals this judgment. The U.S. Foreign Sovereign immunity Act protects the YPF shares from being sold. In an emergency appeal, Argentina stated that a YPF turn-over would irreparably damage its sovereignty, violate the international law, and expand U.S. court's power in a wrong way. It said that it would also be unfair to give its controlling stake in country's biggest energy company up now because it would probably be irrevocable, even if they won the case. Burford claimed that Argentina's years of evasion, combined with a commercial immunity exception, was the reason for YPF's turnover. (Reporting and editing by William Mallard, Richard Chang, and Jonathan Stempel from New York)
-
Russian rouble, stock market gain after Trump's statement on Russia
The Russian rouble recovered its losses against the dollar, and climbed against China's Yuan after U.S. president Donald Trump warned that he would impose a "very serious tariff" on Russia in 50 days if a deal was not reached on settling pacifically. According to LSEG's data based upon over-the counter quotes, as of 1605 GMT the rouble had fallen 0.2% at 78.10 against the dollar, after reaching 78.75 earlier in the day. The rouble has gained 45% against the US dollar since the beginning of the year, according to LSEG data based on over-the-counter quotes. Trump announced on Monday new weapons for Ukraine and threatened to hit Russian export buyers with sanctions. He expressed frustration at Russian President Vladimir Putin over the lack of progress made in ending the conflict in Ukraine. Artyom Nicholasev, an analyst from Invest Era, said that Trump's performance was below expectations. "He gave the Russian leadership 50 days to come up with an offer and extend the negotiations track. Trump is fond of delaying and extending such deadlines. The rouble gained 0.8% against the Chinese Yuan, which is the most commonly traded currency in Russia. It had fallen by more than 1% Friday. According to the Moscow Stock Exchange, after Trump's remarks, Russian stocks rose by 2.7%. (Reporting and editing by Richard Chang; Gleb Bryanski)
-
Britain and Czech Republic will work together to develop small nuclear plants
The UK and Czech Republic announced on Monday that they will explore the possibilities for small modular reactors (SMRs). This partnership could lead to Rolls Royce SMR exporting up to six units into the east European country. Last month, Britain pledged 2,5 billion pounds for the construction of SMRs. It hopes that this will help to increase energy security while helping the country achieve its climate targets and create export opportunities. The SMRs are made in factories with small parts that can be transported by barges or trucks. They are assembled faster and cheaper than large nuclear plants. In a statement issued by the UK Department for Energy Security and Net Zero, which also cited his Czech counterpart, UK Prime Minister Kierstarmer stated: "By working together with our Czech colleagues on small modular reactors we are supporting British engineering, strengthening the industrial base and putting the UK into a leading position for exporting the technologies of tomorrow." Rolls Royce won the contract to build Britain's SMRs last month. Great British Energy, Britain's state owned energy company, is expected to sign the contract and select a location for new plants later this year. Last year, Czech electricity producer CEZ announced that it would acquire a stake in Rolls Royce’s SMR business of around 20%. It also planned to install up to three gigawatts in the country. This is equivalent to six units. Each unit can power approximately one million homes. Starmer and Czech Premier Peter Fiala are hosting a roundtable discussion as part of Fiala's London visit, in order to promote closer links for trade and investment between the two nations. (Reporting by Susanna Twidale, Editing by Aidan Lewis).
-
Earnings and tariffs are a focus for the market, as well as inflation data.
MSCI's global index of equity prices edged lower on Monday, while U.S. Treasury rates edged higher. The latest U.S. Tariff threats kept investors on their toes as they awaited inflation readings due later this week and the beginning of the earnings season. After Donald Trump threatened to impose a 30 percent tariff on imports of goods from the European Union, Mexico and Canada starting August 1, the euro briefly fell to its lowest level in almost three weeks. The dollar index remained stable. The threat of tariffs caused European shares to fall on Monday. The EU announced that it would suspend countermeasures against U.S. Tariffs until early August, and continue to push for a negotiated solution. However, Germany's Finance Minister called for a firm response if levies were implemented. This week the U.S. earnings period begins, and the banks are leading the way. According to LSEG, S&P profits are expected up 5.8% compared to the previous quarter. Now, it's all about the earnings season. They don't know what to expect. They want to remain optimistic. Robert Pavlik is a senior portfolio manager with Dakota Wealth, Fairfield, Connecticut. He said that earnings seasons are usually better than expected. However, he also noted that trading values were "a little expensive compared to the 5-year average". The money manager said that people are waiting to see what happens next, given the recent announcements of tariffs. At 10:54 am on Wall Street, the Dow Jones Industrial Average dropped 53.36 points or 0.12% to 44,318.15, while the S&P500 fell 6.66 points or 0.11% to 6,253.09. The Nasdaq Composite increased 18.05 points or 0.09% to 20,603.58. The MSCI index of global stocks fell 0.12% or 1.07 points to 921.49, while the pan-European STOXX 600 fell 0.26%. POWELL PRESSURE Trump has increased political pressure to ease interest rates more aggressively, despite the fact that U.S. Federal Chairman Jerome Powell had signalled patience on this issue. Kevin Hassett, the White House's economic adviser, warned Trump over the weekend that renovation costs at the Fed headquarters in Washington could be a reason to fire Powell. Trump said that Powell's resignation would be great. The yield on the benchmark 10-year U.S. notes increased by 1 basis point, to 4.433% from 4.423% at the end of Friday. Meanwhile, the 30-year bond's yield rose by 2.2 basis points, to 4.9791%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve fell by 1.8 basis points, to 3.896% from 3.914% at late Friday. Investors are waiting for the U.S. consumer prices data for June due Tuesday. They will also be watching for any upward pressure coming from tariffs. The data on producer prices and import prices, which are due this week, will provide a glimpse of the impact that tariffs may have on supply chain costs. Retail sales figures will also give a good indication of consumer health. The dollar index, which measures greenbacks against a basket including the yen, euro and yen, increased 0.09% at 97.98. The dollar rose 0.07% against the Japanese yen to 147.5. The Mexican peso fell 0.65% against the dollar to 18.767. Mexican President Claudia Sheinbaum is confident that a deal can be reached by the deadline of August. Bitcoin reached the $120,000 mark for the first and last time. It was up by 1.48% to $120,891.36. Oil prices dropped on Monday, after reaching their highest level in the last three weeks. Investors were watching for further U.S. sanction against Russia and tariffs that could affect global supply. U.S. crude dropped 0.64% to $68.01 a barrel. Brent was down to $70.07 a barrel, 0.41% lower on the day. The gold price has stabilized following a three-week high on Monday, as attention was focused on U.S. data and trade negotiations. Silver prices have climbed to their highest level since September 2011, Spot gold dropped 0.41% to $3341.63 per ounce. U.S. Gold Futures increased 0.04% at $3,357.20 per ounce. (Reporting and editing by Christopher Cushing; Sharon Singleton, Ali Williams, and Ali Williams.
-
16 people are killed in attacks on Syrian security forces sent out to quell sectarian conflicts
The defence ministry reported that 16 members of Syria's Security Forces were killed in Sweida (a predominantly Druze city), after they were deployed to quell deadly inter-sectarian violence which local media reported resumed on Monday. After months of tensions, Sunday's clashes between Druze tribal fighters and Bedouin militiamen marked the first instance of sectarian violence in Sweida. The defence ministry issued a press release in which it said that "outlawed group", who were not identified, had attacked several of its units before dawn. It claimed that its forces had responded to the attack, and pursued groups who refused to cease hostilities or continued to target security personnel. In a previous statement, the Defence Ministry said that the fighting on Sunday had left 30 dead. This prompted Syria's Security Forces to send units into the city in order to restore calm and ensure safe passage for any civilians who wanted to leave. Sweida24, a local news outlet, reported that violent clashes erupted again on Monday. According to a second source, the Syrian army will try to establish state control in the entire province to stop any further violence. However, this may take several days. The latest bloodshed was a result of sectarian violence in Syria. Minority groups are increasingly afraid since islamist-led rebels ousted President Bashar Al-Assad and installed their own government. Sunni Muslim Arab groups that fought Assad in the war have agreed to dissolve and become part of the Defence Ministry. However, efforts to integrate armed groups from minorities - such as Druze and Kurds – are largely stalled. Israel's policy of not allowing Syria's army to move south of Damascus, and insisting that Sweida along with neighbouring provinces form a demilitarized area has complicated efforts in southern Syria. In a statement published by state media, Interior Minister Anas Khattab stated that "the absence of state institutions, particularly military and security institutions is the major cause of ongoing tensions in Sweida" and its surrounding areas. Witnesses said that the violence on Sunday was a result of a series of kidnappings including Friday's abduction of Druze merchants on the highway connecting Damascus and Sweida. Khalil Ashawi, Maya Gebeily and Nayera Abdallah in Beirut; Tala Ramadan and Aidan Lewis in Dubai contributed to the report.
-
US Court of appeal delays the sale of Argentina's 51% YPF share
A U.S. Judge on Monday temporarily halted the enforcement of an order requiring Argentina's 51% stake in oil company YPF as partial satisfaction of a $16.1 Billion court judgment. The U.S. District Court Judge Loretta Preska's decision in Manhattan provides temporary relief for the cash-strapped South American nation, which warned that its economy would be unstable if it was forced to give up YPF's stake. Preska had originally scheduled a turnover for Monday but extended the deadline until July 17 in order to give time to appeal. Argentine president Javier Milei is trying to boost foreign currency reserves, rein in inflation and deal with a heavy debt burden. The dispute arose after Argentina decided in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minority shareholders Petersen Energia Inversora or Eton Park Capital Management. Burford Capital is representing these shareholders. Burford Capital has stated that it expects to receive between 35% and 73% respectively of Petersen and Eton Park’s damages. Preska has ordered Argentina to pay $1.71 billion and $14.39 billion in September 2023 to Petersen. Argentina is appealing the judgement. Preska, on June 30, ordered that the government turn over its YPF stake in 14 days. Burford said Argentina's years of evasion and a commercial exception justified a turn-over. Argentina said in a filing to the court on Thursday that "the stakes couldn't be higher." It warned that forcing a turn-around would irreparably damage its sovereignty, interfere in foreign relations, violate the international law, and expand wrongly the power of U.S. Courts. The Argentina compared a turn-over to a foreign judge ordering the U.S. Government to ship gold stored at Fort Knox out of the country, because this court misinterpreted U.S. laws. It also claimed that it would be unfair for the country to relinquish its control of the largest energy company in the country, even if it won the case. Reporting by Jonathan Stempel, New York; Editing by William Mallard
-
China informs EU of new climate targets coming in autumn
Teresa Ribera, the green chief of the European Commission, said that Chinese officials told the European Union their country would produce a national plan in the fall to combat climate change. China and the EU missed the February deadline for submitting new national climate change goals to the United Nations. These targets set out the amount a country would reduce its greenhouse gas emission by 2035. They will be used to evaluate global progress in avoiding catastrophic levels of warming. Ribera told reporters that both parties were working to achieve their national determined contributions (NDCs) ahead of the U.N. climate summit in November. Teresa Ribera oversees EU climate policy. She said, "They have committed themselves to an NDC which is comprehensive, in that it includes the entire economy, and takes into account all greenhouse gasses." She said that they would be releasing a concrete update in the fall. The Chinese foreign ministry has not responded to an immediate comment on the timeline. In April, President Xi Jinping stated that China would announce their new goal prior to COP30. He did not specify a specific date. Despite the fact that U.S. president Donald Trump pulled his country from global climate talks, and reduced U.S. funding for clean energy, Brazil is hosting COP30. It has tried to convince major economies to set aggressive targets and reaffirm commitments to combat climate change. Most nations still haven't announced their climate plans. This month, the EU proposed a climate target for 2040. The 27 EU member countries will now negotiate with the European Parliament. The EU is yet to confirm the 2035 climate target. (Reporting and writing by Liz Lee and Kate Abnett, Ethan Wang, Kirsty Donovan, Alison Williams).
As solar capability grows, some of America's most efficient farmland is at risk
Dave Duttlinger's very first thought when he saw a thick band of yellowishbrown dust smearing the sky above his Indiana farm was: I alerted them this would take place.
About 445 acres of his fields near Wheatfield, Indiana, are covered in solar panels and associated machinery-- land that in April 2019 Duttlinger rented to Dunns Bridge Solar LLC, for one of the biggest solar advancements in the Midwest.
On that blustery spring afternoon in 2022, Duttlinger stated, his phone sounded with questions from disappointed neighbors: Why is dust from your farm inside my truck? Inside my house? Who ought to I contact us to clean it up?
According to Duttlinger's solar lease, examined , Dunns Bridge said it would utilize commercially sensible efforts to minimize any damage to and disruption of growing crops and crop land triggered by its building activities outside the task website and not eliminate topsoil from the home itself. Still, sub-contractors graded Duttlinger's fields to help the structure of roadways and installation of posts and panels, he said, in spite of his cautions that it might make the land more vulnerable to disintegration.
Teams improved the landscape, spreading out fine sand throughout big stretches of abundant topsoil, Duttlinger stated. When visited his farm last year and this spring, much of the land below the panels was covered in yellow-brown sand, where no plants grew.
I'll never ever be able to grow anything on that field again, the farmer stated. About one-third of his approximately 1,200-acre farm-- where his family grows corn, soybeans and alfalfa for cattle-- has actually been leased.
The Dunns Bridge Solar task is a subsidiary of NextEra Energy Resources LLC, the world's largest generator of eco-friendly energy from wind and solar. Duttlinger stated when he approached NextEra about the damage to his land, the company stated it would evaluate any remedial work required at the end of its agreement in 2073, as per the regards to the arrangement.
NextEra declined to talk about the matter or on what future dedications it made to Duttlinger, and might not separately verify them. Job designer Orion Renewable Energy Group LLC directed questions to NextEra.
The solar market is pushing into the U.S. Midwest, drawn by cheaper land rents, access to electrical transmission, and a. wealth of federal and state incentives. The region also has what. solar needs: wide-open fields.
A renewable energy boom risks damaging some of America's. richest soils in crucial farming states like Indiana, according to a. analysis of federal, state and local information; numerous. pages of court records; and interviews with more than 100 energy. and soil researchers, agricultural economic experts, farmers and. farmland owners, and local, state and federal legislators.
A few of Duttlinger's farm, including parts now covered in. solar panels, is on land classified by the U.S. Department of. Farming (USDA) as the most productive for growing crops,. according to a analysis.
For landowners like Duttlinger, the pledge of earnings is. appealing. Solar leases in Indiana and surrounding states can. use $900 to $1,500 an acre per year in land rents, with annual. rate boosts, according to a evaluation of solar leases. and interviews with four solar project developers. In. contrast, farmland lease in leading corn and soybean manufacturers. Indiana, Illinois and Iowa balanced about $251 per acre in 2023,. USDA data shows.
Farmland Partners Inc, a publicly traded farmland genuine. estate financial investment trust (REIT) has leased about 9,000 acres. across the country to solar firms. Much of that ground is extremely. efficient, stated Executive Chairman Paul Pittman.
Do I believe it's the very best use of that land? Most likely not. However our investors would eliminate us if we didn't pursue this, he. stated.
Some renewable resource developers said not all leases end up being. solar jobs. Some are developing their sites to make it. possible to grow crops between panels, while others, like Doral. Renewables LLC, said they use livestock to graze around the. panels as part of their land management. Designers also argue. that in the Midwest, where more than one-third of the U.S. corn. crop is utilized for ethanol production, solar energy is crucial for. powering future electric automobiles.
Some farming economists and agronomists counter that. taking even percentages of the very best cropland out of production. for solar development and destructive important topsoil effects. future crop potential in the United States.
Typical solar farm building and construction practices, including clearing. and grading large areas of land, also can cause significant. disintegration and major runoff of sediment into waterways without. correct remediation, according to the U.S. Environmental. Defense Company and the Justice Department.
Solar development comes amidst increasing competition for. land: In 2023, there were 76.2 million - or nearly 8% - fewer. acres in farms than in 1997, USDA data programs, as farmland is. converted for domestic, industrial and industrial use.
In reaction to ' findings, USDA stated that urban. sprawl and advancement are currently larger contributors to. farmland loss than solar, pointing out reports from the Department of. Energy and agency-funded research.
BUILDING ON PRIME CROPLAND
No one understands how much cropland across the country is presently under. photovoltaic panels or leased for possible future development. Land. offers are generally private deals.
Scientists at the United States Geological Survey and the. U.S. Department of Energy's Lawrence Berkeley National. Lab have actually been compiling a database of existing solar. centers across the nation. Work on the U.S. Large-Scale. Solar Photovoltaic Database started in 2020 and includes data on. 3,699 facilities in 47 states and the District of Columbia.
While that task is incomplete and ongoing, discovered. that around 0.02% of all cropland in the continental U.S. converged in some method with massive, ground-based solar. panel websites they had identified as of 2021.
The total power capability of the solar operations tracked in. the data set represents over 60 gigawatts of electrical power. capability. In the following 2 years, solar capacity has nearly. tripled, according to a Dec. 2023 report from the Solar power. Industries Association (SEIA) and Wood Mackenzie.
To much better comprehend future land-use patterns, . evaluated federal government data to recognize cropland that USDA. classified as prime, distinct, or of local or statewide. importance. likewise reviewed more than 2,000 pages of. solar-related documents filed at regional county recorders' offices. in a little sample of four Midwestern counties-- Pulaski, Starke. and Jasper counties in Indiana, and Columbia County in. Wisconsin.
The counties, representing an area of land a little bigger. than the state of Delaware, are where a few of the country's. biggest projects are being established or built. The sample is not. necessarily representative of the wider United States however. provides an idea of the possible effect of solar projects in. farm-heavy counties.
discovered the portion of these counties' most. productive cropland protected by solar and energy business since. end of 2022 was as follows: 12% in Pulaski, 9% in Starke, 4% in. Jasper and 5% in Columbia.
Jerry Hatfield, former director of USDA Agricultural. Research study Service's National Lab for Agriculture and the. Environment, said ' findings in the four counties are. worrying.
It's not the variety of acres transforming to solar, he stated. It's the quality of the land coming out of production, and what. that indicates for local economies, state economies and the. country's future capabilities for crop production.
More than a dozen agronomists, in addition to renewable energy. researchers and other specialists spoken with , stated the. approach to measuring solar's impact was fair. The news agency. likewise shared its findings with 6 solar developers and energy. firms operating in these counties. 3 said ' sample size. was too little, and the range of findings too wide, to be a reasonable. representation of industry siting and building and construction practices.
By 2050, to fulfill the Biden Administration's decarbonization. targets, the U.S. will need as much as 1,570 gigawatts of electric. energy capability from solar.
While the land needed for ground-based solar advancement to. attain this goal won't be even by state, it is not expected to. exceed 5% of any state's acreage, except the tiniest state of. Rhode Island, where it might reach 6.5%, by 2050, according to. the Energy Department's Solar Futures Research study, published in 2021.
Scientists at American Farmland Trust, a non-profit. farmland protection company which champions what it calls. Smart Solar, forecast last year that 83% of new solar energy. development in the U.S. will be on farm and ranchland, unless. existing government policies changed. Almost half would be on the. country's finest land for producing food, fiber, and other crops,. they warned.
FUEL ARGUMENT
5 sustainable developers and solar power firms spoke with. counter that the industry's usage of farmland is too. little to impact domestic food production overall and need to be. balanced with the requirement to decarbonize the U.S. energy market in. the face of climate modification.
Doral Renewables, the developer behind the $1.5 billion. Mammoth Solar project in Pulaski and Starke counties, does not. consider corn or soybean yields in its siting decisions.
Instead, the business takes a look at the land's topography, zoning. and nearness to an electrical grid or substation-- and attempts to. avoid wooded areas, ditches and environmentally delicate areas,. said Nick Cohen, Doral's president and CEO.
Moving corn acres for solar? I do not see it as replacing. something that is crucial to our society, Cohen said. Solar can. make farmland more productive from a financial point of view, he. added.
Indiana farmer Standard Welker says he got a better offer leasing. 60% of his farmland to Massive than he would have growing corn,. with rates dipping to three-year lows this year.
We've got mounds of corn, we're below the expense of. production, and today, if you're renting land to grow corn--. you're losing money, Welker stated. By doing this, my financial. scenarios are great..
(source: Reuters)