IARN — Democrat Angie Craig of Minnesota and Republican Dusty Johnson of South Dakota introduced the Renewable Fuel Standard Integrity Act into the House of Representatives last week. The goal of the legislation is to reduce the secrecy currently surrounding the small refinery exemption process and bring more certainty into the renewable fuel marketplace. Read more
Fewer Farms In Iowa Last Year Than Previous Year
Statewide Iowa — The total number of farms in Iowa in 2020 was 85,000, down 300 farms from 2019, according to the USDA, National Agricultural Statistics Service – Farms and Land in Farms 2020 Summary report. Read more
Changes To PPP Could Help Farmers, Other Ag Industry Workers
Statewide Iowa — Changes members of Congress made to the Paycheck Protection Program could mean bigger payments to Iowa farmers who’ve seen their operations hurt by the pandemic. Read more
Iowa Fuel Choice Coalition opposes Gov Reynolds ethanol mandate
IARN — Last month, Governor Kim Reynolds expressed her desire to mandate all fuels in Iowa contain at least 10% ethanol or 11% biodiesel. There would still be non-biofuels options available, but that gas stations would be limited to only having one pump available for those non-blended fuels. While the biofuels industry hails this as a step towards increasing the demand for the biofuels that drive a large portion of Iowa’s economy, not everybody is on board with the initiative.
There are Study bills in both chambers of the Iowa Legislature. House Study Bill 185 and Senate Study Bill 1179. According to the Fuel Choice Coalition, a group made up of many fuel retailers in the state., the legislation would severely limit choice at the pump, raise fuel prices, and be a burden to many rural businesses which sell fuel around the state.
More information, along with the associated interview audio, can be found by visiting the Iowa Agribusiness Radio Network.
China surpasses U.S., becomes EU’s biggest trading partner
IARN — New data from the European Union puts China ahead of the United States as the EU’s biggest trading partner. A spokesperson from China’s Foreign Affairs Ministry calls the data “great news for both sides.” 2020 saw China-EU economic and trade ties grow stronger against the COVID-19 pandemic. Read more
Tractor Supply acquires Orscheln Farm and Home
IARN — Tractor Supply Company, the largest rural lifestyle retailer in the United States, has announced it has entered into an agreement to acquire Orscheln Farm and Home in an all-cash transaction for approximately $297 million.
Orscheln Farm and Home operates 167 stores in 11 states including Iowa, Missouri, Kansas, Nebraska, Indiana, Oklahoma, Arkansas, Texas, Kentucky, Illinois, and Ohio. There are 14 store locations in Iowa. The acquisition is conditioned on the receipt of regulatory approval and satisfactory completion of customary closing conditions.
Barry Orscheln, Chairman and CEO of Orscheln Farm and Home, commented, “For more than 60 years, my family, our Orscheln Farm and Home employees and I have been committed to serving the needs of rural communities across the Midwest. I am very proud of all that we have accomplished over this time. I am confident that with Tractor Supply our stores will be well-positioned to continue Orscheln’s tradition of taking care of our customers and communities for the next phase of growth.”
Tractor Supply’s preliminary estimates indicate the acquisition will be immediately accretive to earnings per share upon closing. The earnings accretion is anticipated to grow over time as planned synergies are achieved. Tractor Supply intends to fund the acquisition through existing cash on hand.
For Tractor Supply, Goldman Sachs & Co. LLC is acting as financial advisor, and Bass, Berry & Sims PLC is acting as legal advisor. Fifth Third Securities is acting as financial advisor to Orscheln Farm and Home, while Stinson LLP is acting as legal advisor.
Story courtesy of the Iowa Agribusiness Radio Network
Image from Tractor Supply