AFIA Supports UC-Davis White Paper on GHG Emissions

The American Feed Industry Association is pleased to support a white paper from the University of California-Davis on greenhouse gas emissions from livestock.  The paper is titled “Livestock’s Contribution to Climate Change: Facts and Fiction.”  The document dissects animal agriculture and other areas that produce greenhouse gas emissions, with the consensus that the livestock industry is not a driving force in climate change.  The author states “Efficiencies in US livestock agriculture have lowered the industry’s combined emissions to a historic low of 4 percent of the nation’s total.”  The author adds that furthering those advancements will be paramount to meeting global demand for protein without depleting natural resources.  The EPA says energy production and transportation are the largest contributors, together equaling more than half of the total US emissions.

USGC Looks At Potential For Sales Growth in Colombia

The recently release US Grains Council “Outlook Colombia 2030” report found new market development opportunities in Colombia.  Opportunities in the market come about, as feed imports are likely to expand dramatically in the country, even faster than historical trends suggested.  Colombia’s corn imports are expected to reach 5.5 MMT by 2020, and 7.8 MMT by 2030.  The bullish outlook is due to continued economic growth in Colombia that will expand the middle class and lead to increased meat consumption.  Colombia’s livestock sector is expected to increase its output by more than 50 percent to meet the demand by 2020.  The country’s lagging crop production performance is projected to continue, which means Colombia’s livestock producers will have to rely on imports to support their expected expansion.

Kansas City Fed Issues Farm Economy Report

The Kansas City Federal Reserve Bank issued a report on the farm economy that said farm lending remains “brisk,” but agricultural credit conditions have “deteriorated” as repayment rates have gone down.  The report also says that banks are increasingly using real estate as collateral and raising interest rates.  The report says farmland values have remained relatively strong, but a poor outlook for cash flow could continue to pressure a large share of farm borrowers, particularly those who are highly leveraged.  National Farmers Union President Roger Johnson said the Federal Reserve’s assessment of farm credit conditions, and the signs of deterioration, have NFU concerned about hard times ahead.

Alfalfa Checkoff Will Start Collecting Money In September

A national, voluntary, $1/bag alfalfa checkoff will start collecting money in September, based on summer and fall seed sales.

“Alfalfa is the third most valuable field crop, but it is the only one without a checkoff program,” says Beth Nelson, president of the National Alfalfa & Forage Alliance (NAFA). While USDA supports some alfalfa research, it’s typically less than 10% of those dollars directed toward crops like corn and wheat.

The new checkoff program, approved by the NAFA Board in February, will be voluntary.  Alfalfa brand managers were asked to tell NAFA by the end of April whether they will participate in the program.

“Most of the major seed brands will participate,” says Nelson, generating perhaps $500,000 annually. If everyone participated, the program could generate $800,000. The $1/bag assessment will be made on any product that is at least 80% alfalfa.

Participating seed companies will charge growers $1 per bag, and then will remit that money to NAFA.  NAFA will take no money to administer the program. The money will be targeted to support public alfalfa research looking at yield, water use, and new storage or harvest systems. A call for research proposals will go out this summer, and the final selection of projects to be supported will be made in December.

2016 Food Trend: Extra Cheese

So if history is any guide, this year's food trend should be extra cheese.

The reason is the U.S. is sitting on more butter and cheese than it knows what to do with, and the Europeans are to blame.

Exports from the European Union have climbed so far this year and last -- even after the bloc's once-largest customer, Russia, banned trade in retaliation for sanctions over its incursion in Ukraine. A glut of milk, plunging prices and a weakening euro mean the EU has been able to grab customers in Asia and the Middle East, while U.S. sales have fallen.

European dairy products are so cheap right now that the U.S. itself has become the new No. 1 customer for some products -- imports of EU butter doubled last year and rose 17 percent for cheese, according to the European Commission. All that excess supply is building up in U.S. refrigerators, especially as American dairy production heads to a record this year. 

USDA statistics show cheese inventories at the end of March were the highest for the date since 1984, the year Prince's "Purple Rain" was released. More than half of the supply is American cheese, while Swiss accounts for about 2 percent, and the rest the government classifies as "other."

 "It's been difficult for them to export, given the strong dollar, and they're sucking in imports," said Kevin Bellamy, a global dairy market strategist at Rabobank International in Utrecht, the Netherlands. “Where the U.S. has lost out on business, Europe has gained.”

This year, the EU has boosted butter exports by 27 percent while cheese shipments rose 13 percent, according to the European Commission.

Even though sales increased, things are still pretty dire for European dairy farmers, who've warned for months that rock-bottom prices risk putting them out of business. Average raw milk prices in the EU have slumped to the lowest levels since 2010. U.S. prices have also started falling, with cheddar on the Chicago Mercantile Exchange trading this week at a five-year low.

Washington Insider: Another View on Consumers’ Take on Food Technology

One of the most puzzling aspects of the fight over GMO labels is the strong opposition from consumers, in spite of scientists’ conviction that the technology is fully as safe as conventional approaches.

This week, the Wall Street Journal carried a sophisticated opinion piece by Oklahoma State professor Jayson Lusk, who raises basic questions about the poll results widely cited to support the view that consumers oppose GMOs. The pollsters didn’t dig deeply enough, he says.

The poll results are deeply dubious, he says, since most consumers know so little about the issue. He cites his own survey results of large groups who supported what Lusk calls, “an absurd hypothetical policy mandating labels for foods containing DNA” —which was approved by some 80% of respondents. A follow-up survey asked about whether the statement “all vegetables contain DNA” was true or false. More than half, 52%, said “false.” The correct answer, of course, is “true.”

He goes further and reports that when consumers are questioned on how they want the issue of GMO labeling to be decided, they do not turn to politicians or their fellow citizens, but “a strong 61% majority preferred to put the matter to experts at the Food and Drug Administration.” He thinks this has been “borne out at the ballot box: To date, referendums on mandatory labeling have been held in five states, and none has passed,” Lusk says.

Even worse, Lusk says the debate overlooks “a deeper debate about the future of our food system” which really is heavily driven by “romantic traditionalism,” a desire for food that is purportedly more in line with nature. So, he points out how different today’s food is from that eaten even a few hundred years ago. At that time, carrots were purple before random mutations and selective breeding led to their signature color during the 16th century in the Netherlands which later claimed the new varieties were to honor King William of Orange.

Broccoli, kale, cauliflower and brussel sprouts all emerged from the same wild plant. Potatoes and tomatoes originated in the Americas and were never eaten in Europe and Asia until after the New World was discovered. Today we eat more and better than ever, precisely because we did not accept only what nature provided, in spite of what the foodies often claim.

Biotechnology has the potential for similar improvements, but only if we are willing to embrace them and not let critics block new innovations, Lusk argues. He points to golden rice, which is genetically engineered to provide vitamin A to malnourished children.

Lusk thinks that there are impressive examples of biotech progress that can be appreciated already. “If you’ve eaten cheese lately or taken insulin, thank a scientist. Cheese-making requires rennet, an enzyme that was once extracted from calf intestines but is now made by genetically modified bacteria or yeast. Insulin used to be drawn from cow pancreases but is now made in a lab by GMO microorganisms. Crops that resist insects and tolerate herbicides have created real benefits for farmers, which are passed along to consumers via lower prices, he says.

And, he argues that the “next generation of innovation” is just around the corner: apples that will not brown, potatoes that produce fewer carcinogens when fried, staple crops in the developing world fortified with micronutrients, field crops in the Midwest that require less nitrogen fertilizer. He concludes that “one day soon, when the fad against GMOs fades, retailers might be clamoring to add the tag: 'proudly produced with genetic engineering.'”

It is interesting to hear from a technology supporter willing to confront deeply ingrained public opinion. However, no matter how convinced he is that voters won’t support labels that discriminate against GMOs because they haven’t on some occasions in the past seems to be rapidly approaching a crucial test this summer – and the wind seems to be blowing in the foodies’ direction at the moment.

Whether the politicians in the Senate can see their way clear to prevent confusing rules that work against powerful food technologies remains to be seen, but it seems increasingly likely that the labeling issue will provide a serious test of the US commitment to the science necessary to provide abundant and affordable food for the growing global population. It is a fight that producers should watch closely as it proceeds, Washington Insider believes.

Senate Committee Ask GAO to Investigate Cattle Price Drop

The Senate Judiciary Committee is asking the Government Accountability Office to investigate the 2015 cattle price collapse.  The move comes in response to a request from R-CALF USA to have the government look into the sudden price drop.  The letter to the GAO requests that it investigate the cause of the sudden 15.1 percent drop in fed cattle prices in the second half of that year.  R-CALF CEO Bill Bullard says he’s happy the Senate Judiciary Committee agrees with the evidence they provided on the dysfunctional nature of our fed cattle markets warrants an investigation into the structure of the industry.  It also warrants investigating the susceptibility of our industry to anti-competitive practices.

Farm and Food Groups Ask Congress To Reject TPP

Criticism of the Trans-Pacific Partnership intensified after 160 farm, food, and faith groups sent a letter to Capitol Hill asking lawmakers to reject the pact.  The group said the main beneficiaries of TPP are companies that buy, process, and ship raw Ag commodities, and not farmers who face real risks from rising import competition.  They say TPP imports will compete against US farmers who are facing declining farm prices that are projected to stay low for years.  The White House has promoted TPP as an export boon for farmers.  The letter notes that past trade agreements have not always delivered on export promises.  The groups say the US total exports of corn, soybeans, and wheat have remained steady at 100 MMT for the last 30 years, despite a raft of free trade agreements since the mid-1990s.

EWG Report on Farm Subsidies Using Old Data

Last week, the Environmental Working Group sent out a report titled “The Rich Get Richer: 50 Billionaires Got Federal Farm Subsidies.”  A group called Farm Policy Facts said the report was meant to draw attention to the “problem” of well-known celebrities and billionaires pocketing farm subsidies.  The lone comment on the EWG report noted the data used stopped at 2007.  The group notes that loopholes allowing the wealthy to receive farm subsidies were closed in the 2008 Farm Bill.  Some still get environmental conservation subsidies, which the EWG supports.  Those subsidies were omitted from the current billionaires report.  Farm Policy Facts points out that the EWG publishes a report like this every 18 months to try to get the rest of the farm safety net.

Ag Funding Bill Prevents GIPSA implementation

The House Appropriations Committee approved an amendment to the fiscal 2017 agricultural spending bill that prevents the Grain Inspection, Packers, and Stockyards Administration from implementing regulations that would negatively affect livestock producers.  GIPSA proposed sweeping regulation changes in 2010, called the “GIPSA Rule,” that would limit farmers ability to sell animals, dictated private contract terms, and made it harder to get farm financing.  The Pork Network said it would lead to more vertical integration in the livestock industry.  An Informa Economics study found the proposed rule would have cost the US Ag economy almost 23,000 jobs and reduced GDP by $1.56 billion annually.  It would have cost the pork supply chain over $300 million per year.

NPPC Pleased that Trademark Payments Approved

The USDA Ag Marketing Service announced it would approve the $3 million annual payment by the National Pork Board to the National Pork Producers Council for a trademark purchase.  NPPC President John Weber says it’s for “Pork, the Other White Meat” slogan and icon and he’s pleased with the decision.  The approval comes as the Humane Society is challenging USDA’s approval of the “Pork, the Other White Meat” trademark in court.  Weber said the Ag Marketing Service found the value of the trademark exceeds the value of the original purchase price, which his group knew all along.  Weber said NPPC would continue working with USDA as the court case proceeds. Earlier, the NPPC and the Pork Board put pressure on USDA, which was thought to be in settlement negotiations with HSUS regarding the court case earlier this year.  They wanted USDA to mount a strong defense of the purchase agreement. 

Grain Groups Urge APHIS Not to Rush Biotech Regs

Changes to biotech regulations associated with genetically engineered plants should be made in a cautious and deliberative manner, according to a statement by the National Grain and Feed Association (NGFA) and four other grain industry organizations on plans announced by USDA’s Animal and Plant Health Inspection Service (APHIS) relative to GE crops.

The statement responds to an APHIS notice announcing that the agency intends to prepare an Environmental Impact Statement (EIA) concerning potential revisions to its Part 340 biotech regulations.

Other groups joining NGFA in issuing the statement were the North American Export Grain Association, Corn Refiners Association, North American Millers Association and National Oilseed Processors Association.

“To create a truly workable biotech regulatory framework for the future, APHIS must take the necessary time and make the necessary effort to address the challenge of achieving regulatory coherence and compatibility in the global market," the groups said. “We believe that any changes to US biotech regulatory processes - including Part 340 - should be considered only after advance, robust and thorough discussions with competent government authorities in countries that represent important US export markets."

The groups also asked APHIS to develop a regulatory process for biotech-enhanced ag products that takes into account their downstream effects in the supply chain. Specifically, they encourage establishing thresholds at which the GE trait can be present in the supply chain.

APHIS should coordinate the review of its biotech regulations with an ongoing review of the Coordinated Framework for biotechnology being undertaken by other federal agencies, including the Food and Drug Administration (FDA) and Environmental Protection Agency (EPA), according to the groups.

The concept of “conditional deregulation” for situations where a GE trait has been identified as not posing a plant pest or noxious weed risk should also be considered by APHIS, the groups said. This would allow owners and providers of GE crops to minimize the potential for market disruptions, by preventing such crops from entering the supply stream when doing so would conflict with regulations in important US export markets.

FAPRI: US Biofuels Still Driven Mainly by Policy

U.S. ethanol and biodiesel policy continues to be driven mainly by policy actions, according to the International Biofuels Baseline Briefing Book compiled by the Food and Agricultural Policy Research Institute (FAPRI).

Global ethanol policy summary:

In November 2015, the US Environmental Protection Agency published the 2014, 2105, and 2016 renewable fuel standard rule and 2017 biomass-based biodiesel mandate.

U.S. will continue importing ethanol mostly derived from sugarcane to meet California’s low carbon fuel standard (LCFS) requirement.

As of March 2015, the government of Brazil increased the domestic ethanol mandates from 25% to 27%. In Brazil, the state run fuel supplier Petrobras controls the ethanol blended fossil fuel retail price.

Canadian federal government mandated 5% renewable fuel in gasoline. Canada has provincial ethanol blending mandates too. British Columbia, Alberta, and Ontario have an ethanol blending mandate rate of 5%, while Saskatchewan has a 7.5% rate and Manitoba has an 8.5% ethanol blending mandate rate.

British Columbia has a low carbon fuel standard that targets a 10% decrease in carbon intensity between 2010 and 2020.

The European Union implemented the EU Energy and Climate Change Package in April 2009 and Renewable Energy Directive (RED) in June of 2009. According to RED by 2020, there needs to be a 20% reduction in greenhouse gas emissions compared to 1990. 20% of the total EU energy mix would come from renewable energy and there is a 10% renewable energy blending target in transport fuel. Further, in April 2015 EU amended the original RED to include the 7% cap on crop based biofuels.

EU’s antidumping duties on bioethanol has restricted U.S. from exporting ethanol to EU for fuel use.

NAMI Condemns Osteopath Study on Meat

A review of large-scale studies published in the Journal of Osteopathic Association calls out meat for a host of mortality causes. The meatingplace.com website said the North American Meat Institute said it’s based on “weak correlation data.” The review was conducted by the Mayo Clinic in Arizona and is titled “Is Meat Killing Us?” The authors analyzed six studies and came up with recommendations that physicians should advise their patients to limit animal products when possible and consume more plants than meat. The North American Meat Institute calls it another example of taking weak correlation data and trying to make a broader conclusion from it. NAMI said the study authors left out one recent large-scale study that contradicted their findings entirely. They say physicians are best suited to follow the US Dietary Guidelines that affirm red and processed meats can be part of a balanced diet.

Stripe Rust Threatens Winter Wheat Fields

Winter wheat fields from Nebraska to Texas recently received moisture that should help the crop get to the finish line. The recent rains were followed by damp, cool weather, and that is a perfect environment to develop stripe and leaf rust. Successful Farming at Agriculture.com says stripe rust infestations are hit and miss in the high plains. Fields that don’t have any infestation yet likely will develop some in the wake of rain, cool temperatures, and dew. Dampness increases the risk that the disease will move to the upper leaves of the plant, which contribute most of the energy used by the plant to make grain. If rust is present on the flag leaves at the lower levels of the plant and most of the green area is intact, a fungicide application can be beneficial. If 25 percent of the upper leaves are destroyed, there won’t be as much benefit to the plant. Most fungicides should be applied before the plant starts flowering. 

Lower Horsepower Tractors Bright Spot in Machine Sales

US retail sales of farm tractors under 40 horsepower were up 33 percent for March of 2016, and up 26 percent year-to-date. A report on Successful Farming at Agriculture.com says the 2 wheel drive category of tractors between 40 and 100 horsepower saw sales increase 10 percent in March compared with a year ago. High horsepower tractors didn’t fare as well. Two-wheel-drive tractors over 100 HP declined 32 percent. January to March sales dropped 38 percent compared to a year ago. The Association of Equipment Manufacturers says sales of the smaller tractors benefit from a broad customer base in smaller acreage farms and some livestock operations. Sales of larger production equipment are still significantly lower than a year ago as producers still feel the effects of lower commodity prices and higher used equipment inventories.

FBI, USDA Warn of Equipment Hacking Risks

The FBI is warning agriculture against data breaches that may expose farming data through internet-connected farming equipment, according to Precision Farming Dealer magazine. The FBI, along with USDA, issued the warning last month. Together, the two agencies say farmers should be very mindful of the way they configure technology devices on the farm. The FBI suggested farmers should ensure that companies managing farm data, including digital management tools, application developers and cloud service providers, develop cybersecurity and breach response plans. The FBI says so-called “hacktivists” may be targeting farmers as a way of protesting U.S. agricultural policies. A similar incident occured last fall when an anonymous hacker leaked data of USDA employees to protest against Monsanto.

Canada Extends Rules to Speed Rail Transport of Grain

Last week, Canada issued a one-year extension of rules aimed at speeding grain movement by rail. The rules were put in place after a massive backup of grain occurred in Canada’s Western Prairies in 2014. Pro Farmer’s First Thing Today reports the rules give U.S. railways more access to Canadian shipments and require the two main Canadian railways, Canadian National Railway and Canadian Pacific Railway, to ship a minimum amount of grain. The minimum grain shipment requirements have since been lifted, but the extension continues the government's authority to enact them again, if needed. The rules will now be in place through August first of next year.

American Sheep Industry Association Continues Push for Pricing Rules

The American Sheep Industry Association continues to press USDA for a resolution regarding Livestock Mandatory Reporting rules and regulations. In addition to filing comments on behalf of the industry for updated changes proposed by USDA’s Agricultural Marketing Service, ASI has been meeting with USDA’s Market News branch on the absence of key lamb reports since early February. The Associations says the lack of formula carcass price reporting places the sheep industry in a blind position regarding lamb trades based upon quality. Lamb price reporting has been absent since the purchase of one lamb processor by another this winter. The Association says that creates an inability for one the largest lamb processors to share public data because it operates as a cooperative. The sheep industry requested that AMS use a more literal interpretation of "packer-owned" lambs, using the regulatory definition for lamb reporting, and allow the processor to participate in the reporting program.

Vermont Grocers Seeking Labeling Law Delay

The Vermont Retail and Grocers Association wants the state to delay its GMO labeling law that is slated to start July first. The Vermont Business Magazine reported Monday that the Association is supporting an amendment under consideration by the Vermont Senate delaying the law until July of next year. However, the Association recommends delaying the law until 2018. While expressing support for disclosing GMO information to consumers, the Association says there will likely be some interruptions in supply this summer as food companies change over their labeling to comply with Vermont’s first in-the-nation-labeling law. The law brings national implications as many food suppliers in the U.S. are planning to comply with the Vermont law. The U.S. Senate has unsuccessfully tried to pass a bill containing a national GMO labeling standard earlier this year. Retailers in Vermont say the delay would make implementation of the law smoother. The delay would also give the U.S. Congress more time to craft a compromise between lawmakers on a national GMO labeling standard.

Chances Dimming for Action on Spending Bills

The U.S. House Majority leader says spending bills will not be considered by the full legislative body before lawmakers head to recess at the end of this week. Following Friday, the House will not be in session until May 10th. That leaves more doubt in completing the appropriations process by the October deadline. Still, Majority Leader Kevin McCarthy, a California Republican, says he has not given up on the appropriations process, according to DTN. Four spending plans are ready this week, including the Agriculture spending plan and the Energy and Water bill. House Minority Whip Steny Hoyer, a Maryland Democrat, suspects Congress will have to pass another catch-all spending plan in September, known as a continuing resolution. Because of the election year, the U.S. House will go on a seven-week break starting July 15th. The summer break leaves lawmakers with 18 in-session days to meet the October deadline, if spending bills are not completed before the July break.

Livestock analysts saw Friday’s Cattle on Feed and Cold Storage reports as mildly bullish for cattle and meat prices

Cattle on Feed

“There were no major surprises in the report but it could be considered mildly bullish with placements on the low end of expectations,” wrote Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel in the Cow/Calf Corner newsletter. Nevertheless, this is the second month of year over year increases in feedlot placements, a trend that will continue as feeder supplies continue to grow in the coming months.

The latest Cattle on Feed report showed feedlot inventories on April 1 of 10.853 million head, 100.5 percent of year ago levels. March feedlot marketings were 107 percent of last year and placements were 104.6 percent of year earlier placements.  There was one more business day in March 2016 compared to one year ago.

Peel also noted all of the increase in March placements were feeders over 700 pounds. These cattle will hit the market mid to late third quarter and in the fourth quarter of the year.

Looking at the quarterly breakdown of steers and heifers on feed, Peel noted the total inventory of heifers on feed on April 1 was up 4.5 percent year over year, which was the first increase in quarterly heifers on feed inventory in 14 quarters, since July of 2012.

“This likely reflects both a growing heifer supply and some slowdown in heifer retention,” Peel wrote. “Herd expansion is likely still occurring, but at a slower pace in 2016.”

In contrast, the inventory of steers in feedlots on April 1 was down 1.3 percent from one year ago. This is the first year over year decrease in quarterly steer inventory in feedlots since July 2014.

“While the survey results were a bit more bullish than expectations, we are not sure it is enough to change the bearish view of the current cattle market,” the analysts in the Daily Livestock Report, published by Steve Meyer and Len Steiner Inc. 

They noted plentiful protein supplies, anemic beef export demand and sticky retail prices the market is now encouraging the feeder to accelerate sales, pushing prices down in the process.

Cold Storage

USDA reported the supply of beef, pork and poultry in cold storage at the end of March was 2.235 billion pounds, 0.7 percent lower than a year ago and 1.2 percent lower than the previous month. In four of the last five years March inventories increased from the previous month. Only in 2014 inventories were down.

“The fact that inventories declined should be seen as positive for prices going into the high demand spring period,” according to the DLR.

Peel, however, pointed out that cold storage inventories of beef represent a minimal pipeline level of supplies in the industry from month to month. The average monthly supply of beef in cold storage in 2015 was less than 2 percent of total beef disappearance for the year.

“The build-up of cold storage in 2015 was a useful indicator of sluggishness in beef movement (especially certain products) and large beef imports but was not, by itself, a major supply factor,” wrote Peel. 

No Hearing From US Court Of Appeals On Sixth Circuit WOTUS Ruling

(DTN) -- There will be no hearing of the full U.S. Court of Appeals for the Sixth Circuit on the waters of the United States rule as a result of an order issued Thursday by the court in Cincinnati.

Instead of the entire 23-judge court reviewing the case, the illegal future of the rule will remain in the hands of a three-judge panel. Ag groups, states and others that had sued over the Clean Water Act rule were pushing for an "en banc" hearing, meaning they essentially wanted all 23 judges of the Sixth Circuit Court to rehear the arguments on jurisdiction.

"The court received six petitions for rehearing en banc," the court said in an order issued Thursday. "The original panel has reviewed the petitions for rehearing and concludes that the issues raised in the petitions were fully considered upon the original submission and decision of the cases.

"The petitions then were circulated to the full court. No judge has requested a vote on the suggestion for rehearing en banc. Therefore, the petitions are denied."

US Fish & Wildlife Service Head Claims No Collusion With Environmental Groups

(DTN) -- Although accused of doing so, the head of the U.S. Fish and Wildlife Service said Thursday his agency was not colluding with environmental groups when it comes to the Endangered Species Act.

There has been an outcry from farmers and ranchers in the West who say the federal government is overreaching and protecting species and their habitats, essentially assuming control of private land after the federal government strikes deals with litigants behind closed doors.

Dan Ashe, director of the U.S. Fish and Wildlife Service, told lawmakers during a subcommittee hearing of the U.S. House of Representatives Oversight and Government Reform Committee that his agency is trying to be proactive and avoid litigation. The subcommittee held two hearings on the Endangered Species Act on Wednesday and Thursday in Washington.

Ashe pointed to the successes of public-private partnerships in protecting the sage grouse as a sign of the changing times when it comes to the Endangered Species Act.

"It would be an ethical and legal violation," Ashe said about settlements. "There is no evidence to show that occurred. If it did, it would be a serious violation."

Lawmakers held the hearing to look at ways to improve the process to de-list endangered and threatened species.

The majority of species that are candidates for listing under the Endangered Species Act are found in Western states. However, many species are located in Corn Belt states including Nebraska, Kansas, Missouri, Iowa, Illinois and Indiana.

In the past week or two, USFWS republished a proposed rule to improve the petition process following public comment.

The latest proposed changes to the process include limiting citizen lawsuits to one petition per species, and to require petitioners to give a 30-day notice to states before official petitions are filed.

DELISTING NUMBERS LOW

According to the USFWS, 63 species have been de-listed since the law went into effect 44 years ago. There are about 2,000 species listed. The reason is environmental groups have largely opposed efforts to de-list species although some are no longer in need of federal protection, he said.

"The list is getting bigger," Ashe said.

There is bipartisan support for ESA reform, but legislative efforts in recent years have been unsuccessful. Ashe told the subcommittee his agency could benefit from increased federal funding that would help improve the de-listing process.

Lowell Baier, an attorney from Bethesda, Maryland, and a lifelong conservationist and wildlife advocate, said during Wednesday's hearing that environmental groups have learned to take advantage of the specifics deadlines outlined in law.

"The outlier is a small set of fiercely dedicated and brutally effective special-interest litigants that have developed the capacity to serialize endangered species litigation and grind the entire endangered species program to a halt," he said.

Baier said the groups' effectiveness is best illustrated by a 2011 settlement between the Center for Biological Diversity and WildEarth Guardians, and the U.S. Fish and Wildlife Service.

The groups spent the better part of a decade "inundating the service" with deadline litigation that "diverted resources from actual conservation and sapped agency morale," Baier said.

The groups entered into a settlement that established 1,559 enforceable deadlines covering 1,030 species, subspecies and populations, as well as "outlining the entire Fish and Wildlife Service listing agenda" for five years, Baier said.

USFWS entered into the settlement to reduce the number of listing petitions and lawsuits it faced.

"But in the four-and-a-half years since the settlement was finalized," Baier said, "33 separate lawsuits have been filed against the service and other federal agencies by the two groups involved in the settlement specifically regarding species covered by the settlement, and a further seven cases have been filed by other groups attacking the settlement."

One particular case with the northern Rocky Mountain population of gray wolf, Baier said, shows where environmental groups stand on delisting.

The species was reintroduced beginning in 1995. A recovery plan deemed the wolf would be recovered when Idaho, Montana and Wyoming had a combined total of 300 wolves that includes 30 breeding pairs for three successive years.

"This goal was achieved in 2002 and has since been exceeded continuously," Baier said. "As of the Fish and Wildlife Service's Dec. 31, 2015, report, there were at least 1,704 wolves in 282 packs with 95 breeding pairs.

"For over a decade, the Fish and Wildlife Service has recognized that the population is recovered and should be de-listed, and it has taken steps in that direction numerous time. At every turn, the process has been halted by litigation."

ESA LISTINGS SEEM PERMANENT

Joel Bousman, a rancher from Boulder, Wyoming, and a county commissioner, told the committee that state and local officials need certainty that efforts to recover species are supported by all stakeholders.

"As many of us in the West have known for quite some time, when a species is put on the Endangered Species Act list, it's a bit like checking into the Hotel California," he said.

House Members Call on USTR, USDA to Address TPP Dairy Issues

A coalition of 47 U.S. House members is calling on USDA Secretary Tom Vilsack and U.S. Trade Representative Michael Froman to address three dairy priority areas in the Trans-Pacific Partnership. As Congress slowly prepares to consider the agreement, the group of lawmakers penned a letter to Froman and Vilsack last week regarding their concerns, according to the Hagstrom Report. The list of priorities includes ensuring Canada faithfully implements its TPP commitments. The lawmakers also want to ensure U.S. trading partners, particularly major markets such as Japan, adhere to the intent of the TPP  geographical indication commitments. Finally, the lawmakers want Froman and Vilsack to address U.S. procedures to ensure compliance with market access terms the U.S. will provide to TPP trading partners. The letter was organized by House members representing California, Washington and Wisconsin.

No WOTUS Hearing Coming From The 6th Circuit Court Of Appeals

OMAHA (DTN) -- There will be no hearing of the full U.S. Court of Appeals for the Sixth Circuit on the waters of the United States rule as a result of an order issued Thursday by the court in Cincinnati.

Instead of the entire 23-judge court reviewing the case, the illegal future of the rule will remain in the hands of a three-judge panel. Ag groups, states and others that had sued over the Clean Water Act rule were pushing for an "en banc" hearing, meaning they essentially wanted all 23 judges of the Sixth Circuit Court to rehear the arguments on jurisdiction.

"The court received six petitions for rehearing en banc," the court said in an order issued Thursday. "The original panel has reviewed the petitions for rehearing and concludes that the issues raised in the petitions were fully considered upon the original submission and decision of the cases.

"The petitions then were circulated to the full court. No judge has requested a vote on the suggestion for rehearing en banc. Therefore, the petitions are denied."

The waters of the U.S. rule, commonly called WOTUS, was meant to clarify EPA and U.S. Army Corps of Engineers authority over areas around waterways where the federal government has authority to either require a federal permit or stop any activity that would disturb the waterway. Opponents claim the rule would give the regulatory agencies broad authority over basic farming practices simply because water may pool somewhere after a rain or fill a ditch.

The battle over the rule continues to play out on several fronts. President Barack Obama vetoed legislation earlier this year that would have sent EPA and the Army Corps back to the drawing board in drafting a rule. On Thursday, a vote that would have prevented the agencies from implementing the rule got 56 votes but failed because it needed 60 votes to get into legislation.

In the court case, a number of industry groups led by the American Farm Bureau Federation filed the fairly unique request with the court for rehearing en banc on motions to dismiss the consolidated group of cases. Instead, industry groups wanted to allow cases around the country to revert back to the individual district courts.

Agricultural and other industry groups are unconvinced legal challenges to the rule should be heard by the Sixth Circuit Court even though judges have indicated in previous rulings they may be sympathetic to those groups that claim the rule is a flawed federal overreach.

US Fish & Wildlife Service Head Denies Collusion With Environmental Groups on ESA

(DTN) -- Although accused of doing so, the head of the U.S. Fish and Wildlife Service said Thursday his agency was not colluding with environmental groups when it comes to the Endangered Species Act.

There has been an outcry from farmers and ranchers in the West who say the federal government is overreaching and protecting species and their habitats, essentially assuming control of private land after the federal government strikes deals with litigants behind closed doors.

Dan Ashe, director of the U.S. Fish and Wildlife Service, told lawmakers during a subcommittee hearing of the U.S. House of Representatives Oversight and Government Reform Committee that his agency is trying to be proactive and avoid litigation. The subcommittee held two hearings on the Endangered Species Act on Wednesday and Thursday in Washington.

Ashe pointed to the successes of public-private partnerships in protecting the sage grouse as a sign of the changing times when it comes to the Endangered Species Act.

"It would be an ethical and legal violation," Ashe said about settlements. "There is no evidence to show that occurred. If it did, it would be a serious violation."

Lawmakers held the hearing to look at ways to improve the process to de-list endangered and threatened species.

The majority of species that are candidates for listing under the Endangered Species Act are found in Western states. However, many species are located in Corn Belt states including Nebraska, Kansas, Missouri, Iowa, Illinois and Indiana.

In the past week or two, USFWS republished a proposed rule to improve the petition process following public comment.

The latest proposed changes to the process include limiting citizen lawsuits to one petition per species, and to require petitioners to give a 30-day notice to states before official petitions are filed.

DELISTING NUMBERS LOW

According to the USFWS, 63 species have been de-listed since the law went into effect 44 years ago. There are about 2,000 species listed. The reason is environmental groups have largely opposed efforts to de-list species although some are no longer in need of federal protection, he said.

"The list is getting bigger," Ashe said.

There is bipartisan support for ESA reform, but legislative efforts in recent years have been unsuccessful. Ashe told the subcommittee his agency could benefit from increased federal funding that would help improve the de-listing process.

Lowell Baier, an attorney from Bethesda, Maryland, and a lifelong conservationist and wildlife advocate, said during Wednesday's hearing that environmental groups have learned to take advantage of the specifics deadlines outlined in law.

"The outlier is a small set of fiercely dedicated and brutally effective special-interest litigants that have developed the capacity to serialize endangered species litigation and grind the entire endangered species program to a halt," he said.

Baier said the groups' effectiveness is best illustrated by a 2011 settlement between the Center for Biological Diversity and WildEarth Guardians, and the U.S. Fish and Wildlife Service.

The groups spent the better part of a decade "inundating the service" with deadline litigation that "diverted resources from actual conservation and sapped agency morale," Baier said.

The groups entered into a settlement that established 1,559 enforceable deadlines covering 1,030 species, subspecies and populations, as well as "outlining the entire Fish and Wildlife Service listing agenda" for five years, Baier said.

USFWS entered into the settlement to reduce the number of listing petitions and lawsuits it faced.

"But in the four-and-a-half years since the settlement was finalized," Baier said, "33 separate lawsuits have been filed against the service and other federal agencies by the two groups involved in the settlement specifically regarding species covered by the settlement, and a further seven cases have been filed by other groups attacking the settlement."

One particular case with the northern Rocky Mountain population of gray wolf, Baier said, shows where environmental groups stand on delisting.

The species was reintroduced beginning in 1995. A recovery plan deemed the wolf would be recovered when Idaho, Montana and Wyoming had a combined total of 300 wolves that includes 30 breeding pairs for three successive years.

"This goal was achieved in 2002 and has since been exceeded continuously," Baier said. "As of the Fish and Wildlife Service's Dec. 31, 2015, report, there were at least 1,704 wolves in 282 packs with 95 breeding pairs.

"For over a decade, the Fish and Wildlife Service has recognized that the population is recovered and should be de-listed, and it has taken steps in that direction numerous time. At every turn, the process has been halted by litigation."

ESA LISTINGS SEEM PERMANENT

Joel Bousman, a rancher from Boulder, Wyoming, and a county commissioner, told the committee that state and local officials need certainty that efforts to recover species are supported by all stakeholders.

"As many of us in the West have known for quite some time, when a species is put on the Endangered Species Act list, it's a bit like checking into the Hotel California," he said.

Bousman added, "At the county level, we do not deny the value of protecting truly endangered species. But it is troubling to see that for some the goal of the ESA appears to be permanent and perpetual listings rather than actual species recovery. It is equally troubling that the ESA itself has created a system that favors closed-door litigation over transparent cooperation with local governments."

USDA's Vilsack: Will Move Ahead with GIPSA Rule

Moves by House appropriators to block USDA from finalizing the so-called "GIPSA rule" will not deter USDA from doing just that, USDA Secretary Tom Vilsack said Wednesday.

An amendment blocking finalization of the GIPSA rule, named after the Grain Inspections, Packers and Stockyards Administration (GIPSA), was included in a Fiscal 2017 ag appropriations bill approved by the House Appropriations Committee Apr. 19. Congress had passed similar provisions to block the GIPSA rule in previous appropriations bills, but they were not included in the Fiscal 2016 omnibus spending plan, allowing USDA to move forward with the rule.

The proposed GIPSA rule includes measures aimed at increasing the rights of contract poultry producers, including broadening the definition of unfair contracting practices, setting a base price for growers of the same variety of poultry and requiring processors release sample contracts in the interest of transparency.

The House amendment is “extremely problematic,” Vilsack said during an Apr. 20 speech at the 2016 Food Tank Summit. He noted that the rule is intended to “level the playing field” for contract poultry farmers.

Vilsack cited support from some farm organizations for the rule, however, many others in the industry do not support the rule. “It is puzzling to me, with as many farm organizations who represent farms and who speak on behalf of producers who express strong support for what we're doing,” that the Appropriations Committee would “disregard the will of its producers,” Vilsack said.

The ag spending plan now heads to the House floor, but leadership has yet to announce a date for floor consideration and a vote on the bill. Vilsack indicated that it is his intent to finalize the rule before the end of the Obama administration.

Senate Strikes Down Anti-WOTUS Amendment

The U.S. Senate failed to pass a measure that would block the Clean Water Act rule, otherwise known as the Waters of the U.S. rule. Senators voted 56-42, failing to reach the required 60 votes to attach the amendment to the fiscal 2017 funding bill for the Army Corps of Engineers. Agri-Pulse reports North Dakota Republican Senator John Hoeven originally planned to attach the amendment to the EPA funding bill, however the White House had threatened to veto the bill if passed. Meanwhile, the 6th Circuit Court of Appeals declined to grant a rehearing on its decision regarding where the court dispute over WOTUS should be deliberated. The involved parties asked the court to send the matter to district courts, but the appeals court declined. The same court issued a nationwide stay of the rule last year, indicating the states involved in one lawsuit were likely to win their case.

Traders Searching for Reasons behind Grain Market Rally

Much to the delight of farmers and the confusion to traders, soybeans have rallied a dollar higher since the beginning of March, trading around the $10-per-bushel level this week. Soybean futures on the Chicago Board of Trade opened the month of March near the $8.75 level and topped $10-per-bushel at one point this week. Meanwhile, corn futures traded around $4-per-bushel this week. However, trade experts caution the rally may be short-lived, according to Reuters. One thing traders are confident on is the influx of money from commodity funds pouring into the market, but the reason for massive funds entering the markets remain puzzling. Some of the short-term market factors include new concerns with South America’s current corn and soybean crops and current stockpile levels. Some see the political uncertainty in Brazil as another sticking point for grain markets while there has been very little talk on the potential La Niña weather pattern, which could bring dryness to the central United States. For farmers, the rallies have provided an unexpected opportunity to sell grain they've kept in storage for months.

Australia Defers Decision on Land Deal

Australia's government is pushing back a decision on whether to permit the sale of one of the nation’s largest cattle operations. A joint Chinese-Australian group has reached an agreement to buy Kidman & Company, Australia's biggest farming estate. However, as Pro Farmer’s First Thing Today reports, the agreement needs approval from regulatory bodies in Australia and China. Australia has chosen to defer approval until after the country’s federal elections in July. A takeover had previously been blocked by Australia's Foreign Investment Review Board because Kidman's Anna Creek cattle station in South Australia is close to a military rocket test site. Sellers have since removed the property from the offering. The 33,000 square miles of ranchland equals one percent of all land in Australia, or an area bigger than Ireland, and is home to roughly 150,000 head of cattle. The deal is worth 370 million Australian dollars, or 288 million U.S. dollars.

March Milk Production up 1.8 Percent

Milk production in the 23 major dairy producing states during March totaled 17.2 billion pounds, up 1.8 percent from March of last year.  USDA’s monthly milk production report shows the number of milk cows on farms in the major dairy producing states was 8.64 million head, 19,000 head more than March of 2015, and 9,000 head more than February of this year. Production per cow averaged 1,993 pounds for March, 31 pounds above last year. This is the highest production per cow for the month of March since the 23-state report began in 2003. USDA also revised the February milk production estimate by four million pounds to 15.8 billion pounds, 4.6 percent higher than a year earlier. USDA says milk production in the United States during the January-March quarter totaled 53.0 billion pounds, up 2.1 percent from the January-March quarter last year.

Study Finds University Extension Programs Keep Farmers in Business

A new study says federal cooperative extension programs at land-grant universities help farmers stay in business. The researchers say since 1985, 137,000 farmers would have left the industry without the federal program. The study says cooperative extension and agricultural research translate into higher farm profits, allowing farmers to stay in agriculture. The researchers say that unlike extension and research programs, farm subsidies or commodity programs may not have the intended effect of keeping farmers on their farms. The study found areas receiving more subsidies or commodity dollars also saw a greater loss of farmers three or four years later.

Senate Turns its Back on Western Communities

Votes for permanent reauthorization of controversial federal land acquisition fund

WASHINGTON (April 20, 2016) – As part of the Energy Security and Research Bill (S.2012) passed today by the U.S Senate, the Senate inappropriately included a provision permanently reauthorizing the $900 million Land and Water Conservation Fund with a requirement that not less than 40 percent of LWCF money be spent on federal acquisitions. In the process, the Senators voted down even common-sense reform amendments like that of Sen. Lankford (R-Okla.) which would have required a maintenance component to any new federal acquisition. “It’s disappointing to see Senators from Western states turn their backs on their constituents that are so heavily impacted by the large federal footprint in the West,” said Brenda Richards, Public Lands Council president. “The Land and Water Conservation Fund has never been fully funded because it is so controversial; to permanently authorize LWCF eliminates any opportunity to ever have a conversation about reform that is so badly needed.” LWCF is the chief land acquisition tool of the federal government. The federal government already owns more than 660 million acres of land, which is approximately one-third of the entire United States landmass. Over 90 percent of this land is found in the West and the presence of federal land ownership greatly complicates local and state governance. “We realize that there may be certain times that land acquisition is necessary,” said Tracy Brunner, National Cattlemen’s Beef Association president. “But in the face of an $18 billion federal maintenance backlog, new federal land acquisitions without adequate funding for ongoing care and maintenance is just irresponsible.” To see if your Senators were among those that voted NO to commonsense controls on LWCF spending, click here.

El Nino blasts Southwest, West with big storms

As temperatures warm and planting wraps up across the West and Southwest, young crops are either emerging or reaching various stages of early growth just as an El Nino driven winter storm clashed with an exceptionally powerful moist Gulf of Mexico inflow that brought record snows to Colorado and heavy rains and sporadic tornadoes across Texas and Oklahoma Sunday and into early Monday bringing death and damage across a wide area.

In Southeastern parts of Texas and along the Texas coast, the heaviest rains—more than 17 inches—have fallen in Harris County where farms and ranch homes were filled with water, and recently planted cash crops were damaged or destroyed Monday. National Weather Service (NWS) forecasters called one-day rain totals historic.

In metro Houston, flood waters inundated over a thousand homes and claimed the lives of at least six people. That number was expected to rise as firefighters reached new areas across the city as flood waters began to recede early Tuesday. Rescuers were also busy assisting stranded motorists all across the city.

Texas Gov. Greg Abbott declared a state of disaster for several counties. Houston Mayor Sylvester Turner also urged residents to stay home, citing the severe floods as too dangerous to navigate.

In northern reaches of the state, dozens who live near the Brazos River in Parker County were rescued from water rising into their homes Monday. Water being released from Possum Kingdom Lake caused the river to rise rapidly, eventually cresting at 26 feet. Residents near Possum Kingdom Lake and south of Weatherford were also forced to evacuate, according to law enforcement officials.

In Central Texas, just west of Austin, Highland Lakes residents in Marble Falls were advised to watch for rising flood water on creeks and streams that feed the Highland Lakes, and large areas of the Texas Hill Country reported flooding on the Guadalupe and Pedernales rivers.

Homes near Wiley, Texas, were heavily damaged Monday by softball-sized hail, and across Mid-Western wheat fields homeowners who rushed to cover roofs with large tarps were reporting heavy rain pouring into their homes from Tuesday's heavy storms.

Rains also spread north into Oklahoma and Kansas, dropping significant rains on wheat, mostly considered beneficial for significantly drought-stressed Mid-West wheat.

Meanwhile, a significant winter storm assaulted the mountainous West over the weekend and dumped exceptionally heavy snow on the Rockies across Colorado. Denver received nearly 52 inches of fresh snow just west of Pineclife with an incredible 49 inches of fresh snow near Golden by Sunday. More than 33 inches of a fresh snow fell over parts of Wyoming with the Northern New Mexico mountains receiving nearly a foot of snow by Sunday afternoon.

The threat of a tornado outbreak also threatened parts of Texas and the Deep South early Tuesday prompting farmers to suspend planting operations across wide areas across the Southwest and Southeast early this week.

Syngenta Chief Says ChemChina Aquisition On Track

(Dow Jones) -- Syngenta AG Chief Executive John Ramsay said regulatory reviews of the Swiss seed and pesticide company's $43 billion acquisition by ChemChina are on track so the deal should close by the end of the year.

"We're still very much on course for all regulatory reviews," Mr. Ramsay said in an interview with The Wall Street Journal.

In February, Syngenta agreed to be acquired by government-owned China National Chemical Corp., as ChemChina is formally known, for $43 billion cash.

The deal faces regulatory reviews particularly in regions with large agriculture sectors including the European Union, U.S. and Brazil.

The deal faces particular scrutiny in the U.S. given Syngenta's ownership of chemical facilities there. The Committee on Foreign Investment in the U.S., or CFIUS can review foreign takeovers for any security concerns.

On Wednesday, Syngenta reported that first-quarter sales fell 7% to $3.7 billion, a decline driven by the stronger U.S. dollar. Excluding the effects of currency changes, sales were unchanged during the first three months of the year compared with the same period last year.

Sales fell 4% to Europe, Africa and the Middle East, though they rose 6% at constant exchange rates. Sales were down 2% at constant exchange rates to North America.

Mr. Ramsay said he expects the company to adjust to changes in foreign exchange markets, and that currencies should affect Syngenta's bottom line by only around $75 million this year.

"We're trying to match costs with revenues in the same currency," he said.

Syngenta has been able to raise prices in countries such as Russia and Ukraine that have seen substantial devaluations of their currencies.