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Month: June 2024
US employers add a robust 272,000 jobs in May
WASHINGTON — America’s employers added a strong 272,000 jobs in May, accelerating from April and a sign that companies are still confident enough in the economy to keep hiring despite persistently high interest rates.
Last month’s sizable job gain suggests that the economy is still growing steadily, propelled by consumer spending on travel, entertainment and other services. U.S. airports, for example, reported record traffic over the Memorial Day weekend. A healthy job market typically drives consumer spending, the economy’s principal fuel. Although some recent signs have raised concerns about economic weakness, May’s jobs report should help assuage those fears.
Still, Friday’s report from the government included some signs of a potential slowdown. The unemployment rate, for example, edged up for a second straight month, to a still-low 4%, from 3.9%, ending a 27-month streak of unemployment below 4%. That streak had matched the longest such run since the late 1960s.
President Joe Biden is still likely to point to Friday’s jobs report as a sign of the economy’s robust health under his administration. The presumptive Republican nominee, Donald Trump has focused his criticism of Biden’s economic policies on the surge in inflation, which polls show still weighs heavily in voters’ assessment of the economy.
Hourly paychecks accelerated last month, a welcome gain for workers although one that could contribute to stickier inflation. Hourly wages rose 4.1% from a year ago, faster than the rate of inflation and more quickly than in April. Some companies may raise their prices to offset their higher wage costs.
The Federal Reserve’s inflation fighters would like to see the economy cool a bit as they consider when to begin cutting their benchmark rate. The Fed sharply raised interest rates in 2022 and 2023 after the vigorous recovery from the pandemic recession ignited the worst inflation in 40 years.
Friday’s report will likely underscore Fed officials’ intention to delay any cuts to their benchmark interest rate while they monitor inflation and economic data. Although Chair Jerome Powell has said he expects inflation to continue to ease, he has stressed that the Fed’s policymakers need “greater confidence” that inflation will fall back to their 2% target before they would reduce borrowing costs. Annual inflation has declined to 2.7% by the Fed’s preferred measure, from a peak above 7% in 2022.
“This report is going to complicate the Fed’s job,” said Julia Pollak, chief economist for ZipRecruiter. “No one’s getting those very clear signals that they were hoping for that a rate cut is appropriate in July or September.”
Last month’s hiring occurred broadly across most of the economy. But job growth was particularly robust in health care, which added 84,000 jobs, and restaurants, hotels and entertainment providers, which gained 42,000.
Governments, particularly local governments, added 43,000 positions. Professional and business services, which includes managers, architects and information technology, grew by 33,000.
One potential sign of weakness in the May employment report was a drop in the proportion of Americans who either have a job or are looking for one; it fell from 62.7% to 62.5%. Most of that drop occurred among people 55 and over, many of whom are baby boomers who are retiring.
A surge in immigration in the past three years has boosted the size of the U.S. workforce and has been a key driver of the healthy pace of job growth. (Economists have said it isn’t clear whether the government’s jobs report is picking up all those gains, particularly among unauthorized immigrants.)
When the Fed began aggressively raising rates, most economists had expected the resulting jump in borrowing costs to drive unemployment to painfully high levels and cause a recession. Yet the job market has proved more durable than almost anyone had predicted. Even so, Americans remain generally frustrated by high prices, a continuing source of discontent that could imperil Biden’s reelection bid.
The economy expanded at just a 1.3% annual rate in the first three months of this year, the government said last week, a sharp pullback from the 3.4% pace in last year’s final quarter. Much of the slowdown, though, reflected reduced stockpiling by businesses and other volatile factors, while consumer and business spending made clear that demand remained solid.
In April, though, consumer spending, adjusted for inflation, declined. That raised concern among economists that elevated inflation and interest rates are increasingly pressuring some consumers, particularly younger and lower-income households.
A key reason why the economy is still producing solid net job growth is that layoffs remain at historic lows. Just 1.5 million people lost jobs in April. That’s the lowest monthly figure on record — outside of the peak pandemic period — in data going back 24 years. After struggling to fill jobs for several years, most employers are reluctant to lay off workers.
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UNICEF: 1 in 4 young children lives in severe food poverty
UN development agency installing solar energy at Zimbabwean clinics, hospitals
Zimbabwe is facing long hours of power cuts due to its dilapidated infrastructure and the impact of recurring droughts on hydropower. To help, the United Nations Development Program is installing solar panels on government-owned health facilities. Columbus Mavhunga reports from Bulawayo.
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Boeing’s Starliner spacecraft detects leaks on journey to ISS
SpaceX’s mega rocket completes its fourth test flight from Texas without exploding
Boca Chica, Texas — SpaceX’s mega Starship rocket completed its first full test flight Thursday, returning to Earth without exploding after blasting off from Texas.
The previous three test flights ended in explosions of the rocket and the spacecraft. This time, both managed to splash down in a controlled fashion.
The world’s largest and most powerful rocket — almost 121 meters tall — was empty as it soared above the Gulf of Mexico and headed east on a flight to the Indian Ocean.
Minutes after Thursday morning’s liftoff, the first-stage booster separated from the spacecraft and splashed into the gulf precisely as planned, after firing its engines.
An hour later, live views showed parts of the spacecraft breaking away during the intense heat of reentry, but it remained intact enough to transmit data all the way to its targeted splashdown site in the Indian Ocean.
“And we have splashdown!” SpaceX launch commentator Kate Tice announced from Mission Control at company headquarters in California.
It was a critical milestone in the company’s plan to eventually return Starship’s Super Heavy booster to its launch site for reuse.
SpaceX came close to avoiding explosion in March, but lost contact with the spacecraft as it careened out of space and blew up short of its goal. The booster also ruptured in flight, a quarter-mile above the gulf.
Last year’s two test flights ended in explosions shortly after blasting off from the southern tip of Texas near the Mexican border. The first one cratered the pad at Boca Chica Beach and hurled debris for thousands of feet (meters).
SpaceX upgraded the software and made some rocket-flyback changes to improve the odds. The Federal Aviation Administration signed off Tuesday on this fourth demo, saying all safety requirements had been met.
Starship is designed to be fully reusable. That’s why SpaceX wants to control the booster’s entry into the gulf and the spacecraft’s descent into the Indian Ocean — it’s intended as practice for planned future landings. Nothing is being recovered from Thursday’s flight.
NASA has ordered a pair of Starships for two moon-landing missions by astronauts, on tap for later this decade. Each moon crew will rely on NASA’s own rocket and capsule to leave Earth, but meet up with Starship in lunar orbit for the ride down to the surface.
SpaceX already is selling tourist trips around the moon. The first private lunar customer, a Japanese tycoon, pulled out of the trip with his entourage last week, citing the oft-delayed schedule.
SpaceX’s founder and CEO has grander plans: Musk envisions fleets of Starships launching people and the infrastructure necessary to build a city on Mars.
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War traumatizes, haunts both Israeli and Palestinian children
Many Israeli and Palestinian children are suffering from trauma because of the October 7 Hamas attack on Israel and the ensuing eight months of war between the two sides. Therapists in both communities say the emotional scars could linger for years. Linda Gradstein reports from Jerusalem.
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Novo Nordisk braces for generic challenge to Ozempic, Wegovy in China
SHANGHAI, China — Novo Nordisk is facing the prospect of intensifying competition in the promising Chinese market, where drugmakers are developing at least 15 generic versions of its diabetes drug Ozempic and weight loss treatment Wegovy, clinical trial records showed.
The Danish drugmaker has high hopes that demand for its blockbuster drugs will surge in China, which is estimated to have the world’s highest number of people who are overweight or obese.
Ozempic won approval from China in 2021, and Novo Nordisk saw sales of the drug in the greater China region double to $698 million last year. It is expecting Wegovy to be approved this year.
But the patent on semaglutide, the active ingredient in both Wegovy and Ozempic, expires in China in 2026. Novo is also in the midst of a legal fight in the country over the patent.
An adverse court ruling could make it lose its semaglutide exclusivity even sooner and turn China into the first major market where Novo is stripped of patent protection for the drugs.
Those circumstances have drawn several Chinese drugmakers to the fray. At least 11 semaglutide drug candidates from Chinese firms are in the final stages of clinical trials, according to records in a clinical trial database reviewed by Reuters.
“Ozempic has witnessed unprecedented success in mainland China … and with patent expiry so close, Chinese drugmakers are looking to capitalize (on) this segment as soon as possible,” said Karan Verma, a health care research and data analyst at information services provider Clarivate.
Front-runner Hangzhou Jiuyuan Gene Engineering has already developed one treatment that it says has “similar clinical efficacy and safety” as Ozempic and applied for approval for sale in April. The company has not published efficacy data and did not respond to a request for information.
The company said in January that it expected approval in the second half of 2025, but it cautioned that it would not be able to commercialize the drug before Novo’s patent expires in 2026, unless a Chinese court makes a final ruling that the patent is invalid.
The Danish company’s semaglutide patent is expiring in China far ahead of its expiry in key markets such as Japan, Europe and the U.S. Analysts attribute variations in patent expiry timelines to term extensions Novo has won in specific regions.
Even more pressing for Novo is the China patent office’s 2022 ruling that the patent is invalid for reasons related to experimental data availability, which the company has challenged.
China’s top court said it was not able to say when verdicts are likely ready.
A Novo spokesperson said it “welcomes healthy competition” and was awaiting a court decision on its patent case. The spokesperson did not answer follow-up queries on the matter.
Other Chinese drugmakers who are running the final stages of clinical trials for Ozempic generics include United Laboratories, CSPC Pharmaceutical Group, Huadong Medicine and a subsidiary of Sihuan Pharmaceutical Holdings Group.
CSPC said in May it expected approval for its semaglutide diabetes drug in 2026.
Brokerage Jefferies estimated in an October report that semaglutide drugs from United Laboratories will be launched for diabetes in 2025 and obesity in 2027. United Laboratories did not respond to a request for comment.
Impact on prices
The number of adults who are overweight or obese in China is projected to reach 540 million and 150 million, respectively, in 2030, up 2.8 and 7.5 times from 2000 levels, according to a 2020 study by Chinese public health researchers.
If shown to be as safe and effective as Novo’s, Chinese drugmakers’ products will increase competition and bring down prices, analysts say.
Goldman Sachs analysts estimated in an August report that generics could lead to a price reduction of around 25% for semaglutide in China. The weekly Ozempic injection costs around $100 for each 3mL dose through China’s public hospital network, Clarivate’s Verma said.
Novo acknowledges the intensifying competition.
“In 2026 and 2027 we might see a few more players showing up due to the clinical trials” in progress, Maziar Mike Doustdar, a Novo executive vice president, told investors in March, referring to the China market.
But he also questioned the capability of some of the players to provide meaningful volumes, adding, “We will watch it as we get closer.”
Novo also faces competition from internationally well-known firms, including Eli Lilly, whose diabetes drug Mounjaro received approval from China in May. HSBC analysts expect China’s approval this year or in the first half of 2025 for Lilly’s weight loss drug with the same active ingredient.
Eli Lilly did not reply to a request for a comment on Chinese approval of the drug, which in the U.S. is called Zepbound.
Supplies of both Wegovy and Zepbound remain constrained, but the companies have been increasing production.
Zuo Ya-Jun, general manager of weight loss drugmaker Shanghai Benemae Pharmaceutical, said a product being competitive would depend on distinguishing features such as efficacy, durability of the treatment and a company’s sales abilities.
“It will be a market with fierce competition, but who will be [the leader] is hard to say,” she said.
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NASA unveils catalog of 126 exoplanets
UN chief warns target to limit global warming is slipping away
NEW YORK — The U.N. secretary-general said Wednesday that the world is “at a moment of truth” to reach targets in the 2015 Paris climate accord to limit global warming, as the planet has just experienced the 12 hottest consecutive months on record.
“The truth is, almost ten years since the Paris Agreement was adopted, the target of limiting long-term global warming to 1.5 degrees Celsius is hanging by a thread,” Antonio Guterres told an audience at New York’s American Museum of Natural History, where exhibits about extinct dinosaurs offered their own planetary warning.
“The World Meteorological Organization reports today that there is an 80% chance the global annual average temperature will exceed the 1.5-degree limit in at least one of the next five years,” he said.
“We are playing Russian roulette with our planet,” he warned in a special climate speech under the museum’s famous blue whale, marking World Environment Day.
The U.N. chief said the richest 1% of countries are emitting as much pollution as two-thirds of all humanity.
He said the planet is emitting around 40 billion tons of carbon dioxide annually and will burn through its remaining “carbon budget” of around 200 billion tons well before 2030. Guterres also said global emissions need to fall 9% each year between now and 2030 in order to keep the 1.5 degree Celsius limit alive. Last year, they rose by 1%.
The bill for the climate crisis will keep growing without meaningful action.
“Even if emissions hit zero tomorrow, a recent study found that climate chaos will still cost at least $38 trillion a year by 2050,” Guterres said.
Fossil fuels
The climate crisis has been a signature issue of Guterres’ tenure since becoming the world’s top diplomat seven-and-a-half years ago. He has repeatedly called for the phasing out of coal and other fossil fuels in favor of cleaner renewable energies like wind and solar power — which already produce nearly a third of the world’s electricity.
He raised the ante Wednesday, urging banks to stop financing oil, coal and gas and invest in renewables instead. He called on countries to ban advertising from fossil fuel producers and said news and technology platforms should stop taking their advertising.
“I call on leaders in the fossil fuel industry to understand that if you are not in the fast lane to clean energy transformation, you are driving your business into a dead end — and taking us all with you,” the U.N. chief said, adding that the oil and gas industry invested only 2.5% of its total spending on clean energy in the last year.
He urged public relations companies and lobbyists to stop enabling the industry’s “planetary destruction” and drop those clients.
“Many in the fossil fuel industry have shamelessly greenwashed, even as they have sought to delay climate action — with lobbying, legal threats, and massive ad campaigns,” he said.
Leveling the field
The secretary-general reiterated his stance that those who have contributed the least to the climate crisis are suffering the most — mainly poorer nations in Africa and small island states. The G20 major economies produce 80% of the world’s emissions.
“It is a disgrace that the most vulnerable are being left stranded, struggling desperately to deal with a climate crisis they did nothing to create,” he said.
Guterres warned that the difference between 1.5 and 2 degrees could mean survival or extinction for some small island nations and coastal communities.
“1.5 degrees is not a target. It is not a goal. It is a physical limit,” he said.
Global warming is already hurting the planet’s oceans, their coral reefs and marine ecosystems, and melting sea ice. Across the globe, severe floods, droughts, heatwaves, wildfires, and other climate-related catastrophes are becoming all too frequent.
The secretary-general said there must be more financing and technical support from richer countries to mitigate climate impacts and invest in renewables for lower income states. He also said a global early warning system must be in place by 2027, to protect everyone on Earth from hazardous weather, water or climate events.
He urged citizens to continue to make their voices heard and said it is time for leaders to decide whose side they are on.
“Now is the time to mobilize; now is the time to act; now is the time to deliver,” he said to a standing ovation. “This is our moment of truth.”
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No more chicken Big Macs – EU court rules against McDonald’s in trademark case
Brussels — McDonald’s MCD.N does not have the right to use the term “Big Mac” for poultry products in Europe after not using it for them for five consecutive years, the region’s second top court said on Wednesday, a partial win for Irish rival Supermac’s in a long-running trademark dispute.
The Luxembourg-based General Court’s ruling centered on Supermac’s attempt in 2017 to revoke McDonald’s use of the name Big Mac, which the U.S. company had registered in 1996 for meat and poultry products and services rendered at restaurants.
The European Union Intellectual Property Office (EUIPO) dismissed Supermac’s application for revocation and confirmed McDonald’s use of the term for meat and chicken sandwiches, prompting the Irish company to challenge the decision.
Supermac’s, which opened its first restaurants in Galway in 1978 and had sought to expand in the United Kingdom and Europe, sells beef and chicken burgers as well as fried chicken nuggets and sandwiches.
The General Court rejected McDonald’s arguments and partially annulled and altered EUIPO’s decision.
“McDonald’s loses the EU trade mark Big Mac in respect of poultry products,” judges ruled.
“McDonald’s has not proved genuine use within a continuous period of five years in the European Union in connection with certain goods and services.”
The U.S. fast-food chain said in an email it can still continue to use the Big Mac trademark, which it uses chiefly for a beef sandwich.
Supermac’s founder Pat McDonagh told Ireland’s Newstalk Radio that the decision was “a big win for anyone with the surname Mac.”
“It does mean we can expand elsewhere with Supermac’s across the EU, so that is a big win for us today,” he told the radio station.
Trademark owners should pay attention to the ruling, said Pinsent Masons IP lawyer Matthew Harris.
“This is a huge wakeup call and owners of well-known trademarks cannot simply rest on the premise ‘it is obvious the public know the brand and we have been using it’,” he said.
“The case highlights that even global renowned brands are held to the same scrutiny when having to evidence genuine use of a trademark in a given territory.”
The ruling can be appealed to the Court of Justice of the European Union, Europe’s highest.
The case is T-58/23 Supermac’s v EUIPO – McDonald’s International Property (BIG MAC).
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NASA tries for third time Wednesday to launch first crewed flight of Boeing Starliner spacecraft to ISS
Study finds Earth warming at record rate, no evidence of climate change accelerating
Panel rejects psychedelic drug MDMA as a PTSD treatment
washington — Federal health advisers voted Tuesday against a first-of-a-kind proposal to begin using the mind-altering drug MDMA as a treatment for PTSD, handing a potentially major setback to advocates who had hoped to win a landmark federal approval and bring the banned drugs into the medical mainstream.
The panel of advisers to the Food and Drug Administration sided 10-1 against the overall benefits of MDMA when used to treat post-traumatic stress disorder. They cited flawed study data, questionable research conduct and significant drug risks, including the potential for heart problems, injury and abuse.
“It seems like there are so many problems with the data — each one alone might be OK, but when you pile them on top of each other … there’s just a lot of questions I would have about how effective the treatment is,” said Dr. Melissa Decker Barone, a psychologist with the Department of Veterans Affairs.
The FDA is not required to follow the group’s advice and is expected to make its final decision by August, but the negative opinion could strengthen FDA’s rationale for rejecting the treatment.
The vote followed hours of pointed questions and criticisms about the research submitted on MDMA — sometimes called ecstasy or molly. Panelists pointed to flawed studies that could have skewed the results, missing follow-up data on patient outcomes, and a lack of diversity among participants. The vast majority of patients studied were white, with only five Black patients receiving MDMA, raising questions about the generalizability of the results.
“The fact that this study has so many white participants is problematic because I don’t want something to roll out that only helps this one group,” said Elizabeth Joniak-Grant, the group’s patient representative.
The FDA advisers also drew attention to allegations of misconduct in the trials that have recently surfaced in news stories and a report by the nonprofit Institute for Clinical and Economic Review, which evaluates experimental drug treatments. The incidents include a 2018 report of apparent sexual misconduct by a therapist interacting with a patient.
Lykos Therapeutics, the company behind the study, said it previously reported the incident to the FDA and regulators in Canada, where the therapist is based. Lykos is essentially a corporate spinoff of the nation’s leading psychedelic advocacy group, the Multidisciplinary Association for Psychedelic Studies, or MAPS, which funded the studies. The group was founded in 1986 to promote the benefits of MDMA and other mind-altering substances.
MDMA is the first in a series of psychedelics — including LSD and psilocybin — that are expected to come before the FDA in the next few years. The panel’s negative ruling could further derail financial investments in the fledgling industry, which has mainly been funded by a small number of wealthy backers.
MDMA’s main effect is triggering feelings of intimacy, connection and euphoria. When used to enhance talk therapy, the drug appears to help patients process their trauma and let go of disturbing thoughts and memories.
But the panel struggled with the reliability of those results, given the difficulties of objectively testing psychedelic drugs.
Because MDMA causes intense, psychological experiences, almost all patients in two key studies of the drug were able to guess whether they had received the MDMA or a dummy pill. That’s the opposite of the approach generally required for high-quality drug research, in which bias is minimized by “blinding” patients and researchers to whether they received the drug under investigation.
“I’m not convinced at all that this drug is effective based on the data I saw,” said Dr. Rajesh Narendran, a University of Pittsburgh psychiatrist who chaired the panel.
Panelists also noted the difficulty of knowing how much of patients’ improvement came from MDMA versus simply undergoing the extensive therapy, which totaled more than 80 hours for many patients. Results were further marred by other complicating factors, including a large number of patients who had previously used MDMA or other psychedelics drugs recreationally.
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LogOn: Swarms of drones can be managed by one person
The U.S. military says large groups of drones and ground robots can be managed by a single person without added stress to the operator. In this week’s episode of LogOn, VOA’s Julie Taboh reports the technologies may be beneficial for civilian uses, too. Videographer and video editor: Adam Greenbaum
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Many Americans still shying away from EVs despite Biden’s push, poll finds
Washington — Many Americans still aren’t sold on going electric for their next car purchase. High prices and a lack of easy-to-find charging stations are major sticking points, a new poll shows.
About 4 in 10 U.S. adults say they would be at least somewhat likely to buy an EV the next time they buy a car, according to the poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago, while 46% say they are not too likely or not at all likely to purchase one.
The poll results, which echo an AP-NORC poll from last year, show that President Joe Biden’s election-year plan to dramatically raise EV sales is running into resistance from American drivers. Only 13% of U.S. adults say they or someone in their household owns or leases a gas-hybrid car, and just 9% own or lease an electric vehicle.
Caleb Jud of Cincinnati said he’s considering an EV, but may end up with a plug-in hybrid — if he goes electric. While Cincinnati winters aren’t extremely cold, “the thought of getting stuck in the driveway with an EV that won’t run is worrisome, and I know it wouldn’t be an issue with a plug-in hybrid,″ he said. Freezing temperatures can slow chemical reactions in EV batteries, depleting power and reducing driving range.
A new rule from the Environmental Protection Agency requires that about 56% of all new vehicle sales be electric by 2032, along with at least 13% plug-in hybrids or other partially electric cars. Auto companies are investing billions in factories and battery technology in an effort to speed up the switch to EVs to cut pollution, fight climate change — and meet the deadline.
EVs are a key part of Biden’s climate agenda. Republicans led by presumptive nominee Donald Trump are turning it into a campaign issue.
Younger people are more open to eventually purchasing an EV than older adults. More than half of those under 45 say they are at least “somewhat” likely to consider an EV purchase. About 32% of those over 45 are somewhat likely to buy an EV, the poll shows.
But only 21% of U.S. adults say they are “very” or “extremely” likely to buy an EV for their next car, according to the poll, and 21% call it somewhat likely. Worries about cost are widespread, as are other practical concerns.
Range anxiety – the idea that EVs cannot go far enough on a single charge and may leave a driver stranded — continues to be a major reason why many Americans do not purchase electric vehicles.
About half of U.S. adults cite worries about range as a major reason not to buy an EV. About 4 in 10 say a major strike against EVs is that they take too long to charge or they don’t know of any public charging stations nearby.
Concern about range is leading some to consider gas-engine hybrids, which allow driving even when the battery runs out. Jud, a 33-year-old operations specialist and political independent, said a hybrid “is more than enough for my about-town shopping, dropping my son off at school” and other uses.
With EV prices declining, cost would not be a factor, Jud said — a minority view among those polled. Nearly 6 in 10 adults cite cost as a major reason why they would not purchase an EV.
Price is a bigger concern among older adults.
The average price for a new EV was $52,314 in February, according to Kelley Blue Book. That’s down by 12.8% from a year earlier, but still higher than the average price for all new vehicles of $47,244, the report said.
Jose Valdez of San Antonio owns three EVs, including a new Mustang Mach-E. With a tax credit and other incentives, the sleek new car cost about $49,000, Valdez said. He thinks it’s well worth the money.
“People think they cost an arm and a leg, but once they experience (driving) an EV, they’ll have a different mindset,” said Valdez, a retired state maintenance worker.
The 45-year-old Republican said he does not believe in climate change. “I care more about saving green” dollars, he said, adding that he loves the EV’s quiet ride and the fact he doesn’t have to pay for gas or maintenance. EVs have fewer parts than gas-powered cars and generally cost less to maintain. Valdez installed his home charger himself for less than $700 and uses it for all three family cars, the Mustang and two older Ford hybrids.
With a recently purchased converter, he can also charge at a nearby Tesla supercharger station, Valdez said.
About half of those who say they live in rural areas cite lack of charging infrastructure as a major factor in not buying an EV, compared with 4 in 10 of those living in urban communities.
Daphne Boyd, of Ocala, Florida, has no interest in owning an EV. There are few public chargers near her rural home “and EVs don’t make any environmental sense,″ she said, citing precious metals that must be mined to make batteries, including in some countries that rely on child labor or other unsafe conditions. She also worries that heavy EV batteries increase wear-and-tear on tires and make the cars less efficient. Experts say extra battery weight can wear on tires but say proper maintenance and careful driving can extend tire life.
Boyd, a 54-year-old Republican and self-described farm wife, said EVs may eventually make economic and environmental sense, but “they’re not where they need to be” to convince her to buy one now or in the immediate future.
Ruth Mitchell, a novelist from Eureka Springs, Arkansas, loves her EV. “It’s wonderful — quiet, great pickup, cheap to drive. I rave about it on Facebook,″ she said.
Mitchell, a 70-year-old Democrat, charges her Chevy Volt hybrid at home but says there are several public chargers near her house. She’s not looking for a new car, Mitchell said, but when she does it will be electric: “I won’t drive anything else.”
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Rare fossil of adolescent Tyrannosaurus – ‘Teen Rex’ – found by US kids
Chinese lunar probe returning to Earth
US farmers opt for soy to limit losses as all crop prices slump
Chicago — Mark Tuttle planted more soy and less corn on his northern Illinois farm this spring as prices for both crops hover near three-year lows and soybeans’ lower production costs offered him the best chance of turning a profit in the country’s top soy producing state.
He even planted soybeans in one of his fields for a second straight year, breaking the traditional soy-corn-soy rotation for field management. He and many other farmers are hoping to just minimize losses.
Planting more soy at a time of sputtering demand from importers and domestic processors will only serve to drive prices lower, further swell historically large global supplies and erode U.S. farm incomes already poised for the steepest annual drop ever in dollar terms.
But Midwest farmers’ other main options — seeding more corn or leaving fields fallow — could have resulted in even wider losses.
“There’s a better chance of making money with soybeans than there is for corn right now,” Tuttle said. “But if we have another bigger crop, prices are going to go lower and that’s not going to bode well for the farmer.”
In March, the U.S. Department of Agriculture forecast farmers would plant 86.5 million acres of soybeans nationwide this spring, the fifth most ever. Some analysts expect soybean acres to increase by another million acres or more as heavy rains close the window on corn planting.
In nearby Princeton, Illinois, Evan Hultine also increased soy plantings and scaled back corn. High production costs due in part to a jump in interest rates looked likely to erode most or all of his corn returns, while soybeans remained marginally profitable, he said.
The farm’s profits will likely be the thinnest in at least five years, Hultine said.
In an annual early season crop budget estimate, University of Illinois agricultural economists projected negative average farmer returns in the state for both crops, though losses would be smaller for soybeans.
Unprofitable crops
In northern Illinois, farmers could lose $140 per acre on average for corn and $30 an acre for soybeans with autumn delivery prices of $4.50 and $11.50 a bushel, respectively, the analysis showed. Actual returns vary significantly from farm to farm, however, depending on factors like crop yields, the timing of grain sales and whether farmers own or rent their land.
Fertilizer costs are down from highs last year, but crop prices are also down, while land costs remain elevated and borrowing rates for operating loans and equipment have jumped, likely forcing farmers to cut expenses, the economists said.
When looking to cut costs, farmers often favor planting soybeans rather than corn because they require less fertilizer and pesticides and seed costs tend to be lower.
High interest rates have been a particularly painful expense recently.
“If you’re borrowing $700 an acre to put a corn crop in at 7% to 8%, you’re talking about some real dollars there just on the price of money. You can put a bean crop in a lot cheaper. Your interest cost per acre might be half,” Tuttle said.
More soy, less corn
An early-spring forecast from the USDA projected soy plantings would expand by 3.5% this year while corn plantings were expected to shrink 4.9%.
The expansion is expected to swell the U.S. soy stockpile next season by more than 30% to the highest in five years and the sixth highest level on record as demand from the domestic and export markets is not keeping pace with rising production, according to the USDA.
Now, rain-saturated fields in some areas could clip corn acres and even further expand seedings of soybeans, which, unlike corn, can be planted well into June without significant risk to yields.
Cash prices offered for the next corn and soybean harvest have improved from earlier this spring in Spencer, Iowa, where Brent Swart has been struggling to plant the last of his corn acres due to overly wet weather. But neither crop pencils a profit at current prices.
Nearly a foot of rain over the past month, seven inches more than normal, has left his fields too soggy for field work. Swart estimates his remaining corn fields may not be in shape to plant until after his planting deadline date of June 1, when crop insurance benefits begin to drop with each day.
Swart’s best option in some of his fields may be to file an insurance claim saying he was prevented from planting due to waterlogged soils. Soybean prices remain some 40 cents a bushel under his estimated cost of production, he said.
“If you switch to soybeans, you’re potentially looking at a loss. If you prevent plant, you’re looking at more of a breakeven scenario,” Swart said.
Only farmers with severe weather issues will be able to file for insurance, however.
Weather delays and a favorable price versus corn could boost soy plantings by 500,000 to 1 million acres above the USDA’s latest forecast for 86.5 million, said Tanner Ehmke, lead economist for grains and oilseeds at CoBank.
“The signal from the marketplace to the farmer right now is that, if you have a doubt about your acreage, send those acres to soybeans,” he said.
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