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Tuesday, May 31, 2016

Banks Tightening Credit For US Farmers

(Dow Jones) -- Banks are tightening credit for U.S. farmers amid a rise in delinquencies, forcing some growers to turn to alternative sources of loans.
When U.S. agriculture was booming this decade, banks doled out ample credit to strong performers and weaker growers alike, said Michael Swanson, an agricultural economist at Wells Fargo & Co. But with the farm slump moving into its third year, banks have become pickier, requiring some growers to cough up more collateral and denying financing outright to some customers who need it to pay for seeds, crop chemicals and rent. Farmers this year have been grappling with low commodity prices, mounting debt and weaker incomes.
Claude Sem, chief executive of Farm Credit Services of North Dakota, said he asked some farmers to put up more land or machinery to back loans this spring.
Collateral requirements could increase for more farmers if crop prices remain low, he said, noting that the cash price for wheat in northern North Dakota recently was about $4.50 a bushel, roughly a dollar below what it costs many farmers to raise the crop.
"Below break-even, everything tightens up," Mr. Sem said, adding that falling land values also have spurred lenders to boost collateral requirements, with cropland prices down as much as 20% in some parts of North Dakota.
With traditional bank loans harder to come by, farmers are turning to sources like CHS Inc., a large farmer-owned cooperative in the U.S., which operates grain elevators and retail stores across the Midwest. CHS said its loans to farmers increased 48% in both number and volume in the 12 months to March and have more than doubled since 2014.
It "suggests there are many farmers struggling to obtain financing," said Randy Nelson, president of the co-op's financing subsidiary, CHS Capital.
CHS said its interest rates on farm loans for crop-production expenses generally range from 3.75% to 6%. Commercial banks in the Farm Belt recently have charged about 4.9%, according to the Chicago Federal Reserve Bank of Chicago and bankers.
A recent rally in some U.S. agricultural markets has brightened the picture considerably for growers of crops like soybeans, but many farmers still are facing losses this year thanks to a large buildup in global grain stockpiles that has pressured prices for other U.S. commodities like corn and wheat.
The Chicago Fed earlier this year said the volume of the district's farm-loan portfolio with major or severe repayment difficulties hit 5% in late 2015, which compares with 2.9% a year earlier and is the highest in more than a decade. Illinois banker Eric McRae said repayment problems are deemed serious when growers carry debt from year to year or are 90 days delinquent on loan payments.
Farmers typically take out loans in the first three months of the year before spring planting begins. But this year, growers, including some who had been turned away by their primary lenders, had been searching for financing as late as April, when planters already were rolling in fields across the Farm Belt.
"There's hardly a day that goes by that I don't get approached by someone turned down by another bank," said Grant Lindell, vice president of First United Bank in Michigan, N.D. As late as May, Mr. Lindell said he still was working with several longtime customers to help them make ends meet by selling equipment or taking out a mortgage on their land.
Farmers also are seeking more help from the government. Demand for loans from the Farm Service Agency, an arm of the U.S. Department of Agriculture that administers financial support to growers, is projected to increase 23% in 2016, according to the USDA. That rise in part reflects banks' requests for government guarantees on farm loans and other types of loans like microloans to beginning farmers.
Loan demand has been so strong that the Farm Service Agency already has spent 75% of its allotted funds for the fiscal year, which ends Sept. 30, triggering an obligation to alert Congress to the quicker-than-normal lending pace.
The USDA has said net farm income will slide this year to $54.8 billion, down 56% from its peak in 2013 and the lowest level since 2002. Debt-to-asset ratios among farmers are expected to rise for the fourth year in a row.
Bankers said they generally don't expect anything like the financial strain of the 1980s, when tumbling land values and rising indebtedness pushed many growers and agricultural lenders out of business. Lending activity in the U.S. is still strong, and delinquency rates on farm loans remain relatively low, though they have risen in some parts of the Farm Belt.
But lenders are closely watching their portfolios for signs of stress. Data from the nation's Federal Reserve Banks in mid-May showed growers are appealing to lenders for more loans to cover farm operations even as the rate at which existing debt is being paid off falls.
Some borrowers this spring faced tough decisions over whether to sell assets like farmland or equipment, appeal to landlords to reduce rents or stop farming altogether, said Mark Jensen, chief risk officer at Farm Credit Services of America. About 90% to 95% of the bank's farm loans are classified as "acceptable," but its list of loans to watch is building, he said.
Nathan Kauffman, Omaha branch executive at the Kansas City Fed, said lenders in his district are working to restructure debt for borrowers but can't do so indefinitely. Mr. Kauffman said, "2016 is going to be a critical year."

USDA Extends Deadline for Recording Farm Structure

Agriculture Secretary Tom Vilsack announced a one-time 30-day deadline extension to the June first deadline for recording farm organization structures related to Actively Engaged in Farming determinations. This date is used to determine the level of interest an individual holds in a legal entity for an applicable program year. Farming operations now have until July first to complete their restructuring or finalize any operational change. USDA issued the extension in response to farmers and ranchers who requested more time to comply.

Electric City to host Montana Stockgrowers Association’s MidYear Meeting

Helena, MT – The Montana Stockgrowers Association’s MidYear Meeting will be held June 9-11 in Great Falls at the Hilton Garden Inn. This year’s MidYear event will be highlighted by a Cattlemen’s College workshop, policy committee meetings and a tour of Ryan Dam!
Mid-Year is one of two major meetings MSGA holds annually where members will gather to discuss the issues facing Montana ranching families and set interim policy to guide the association through the rest of the year. Topics that will be covered in policy committee meetings include the Yellowstone grizzly bear delisting, brucellosis, elk management, the bison quarantine and an update from the Department of Livestock’s executive officer.
The Cattlemen’s College workshops presented by Carrie Mess will kick off events on Thursday afternoon. Ranchers will have the opportunity to learn how to effectively communicate their story and connect, both online and in person with their customers. Area business leaders and the community are invited to a special fundraiser event on Thursday night for MSGA’s Research & Education Endowment Foundation, held at the Hilton Garden Inn with live music by Insufficient Funds Band.
Friday’s Opening General Session will feature a panel of supply chain stakeholders who have formalized Canada’s beef sustainability program and the progress being made in the U.S. The panel includes Bob Lowe, the Alberta Beef Producers Chair; Nancy Labbe, Senior officer of World Wildlife Fund’s sustainable ranching program; and Emily Murray, General Manager of McDonald’s Beef at Cargill.
After policy meetings Friday morning, Ranchers will gather for a Tour of local businesses followed by a steak dinner, fun and music!
For more information about MSGA’s 2016 Mid-Year Meeting, contact MSGA’s office at (406) 442-3420 or join the Facebook event. Visit mtbeef.org for more details.

California ag faces further economic losses as drought persists

Despite nearly normal rainfall and snowpack during the 2015-16 rainy season, California farmers and agribusinesses could face up to $1.5 billion in losses due to persistent drought conditions, according to a new report from CoBank. The drought’s lingering effects will lead to another round of water restrictions for producers for the remainder of the growing year and beyond.

While northern California saw the most precipitation during the rainy season, much of the state is still blanketed by severe drought, especially in the central and southern regions. Government agencies in the state will again need to enforce water restrictions, allocating less than 60% of the state’s contracted water supplies. These restrictions will result in a 5-7% loss in net cash income for farmers, ranchers and agribusinesses across the state, according to the report.

“Although California’s cities, rural communities and farmland are less parched today than they were a year ago, water remains in short supply,” said Leonard Sahling, vice president with CoBank’s Knowledge Exchange Division. “While, for some areas, water allocations will be more than double last year’s amounts, growers will still fallow up to 350,000 acres this year.”

In addition to fallowing land, growers have several other options to offset water restrictions and drought effects, including increasing their use of groundwater stores, purchasing additional water from senior rights holders, increasing the use of crop insurance to mitigate risk and lost income and shifting their crop mix in favor of crops that require less water.

“Some sectors will feel the effects of these water restrictions more so than others,” Sahling said. “Crops that yield the highest returns on investment, like permanent plantings of tree crops and vines, should be impacted the least. At the same time, we expect a large reduction in acreage for field crops that require significant amounts of water, including corn, wheat, cotton and alfalfa.”

For cattle and dairy farms, the biggest drought-related risk stems from potentially higher feed costs. “Fallowing decisions will affect the price and availability of locally grown feed ingredients,” Sahling said. “However, grain and feed prices have declined across the nation, mitigating this risk.”

Despite a projected reduction in farm income, Sahling said California’s agriculture sector remains strong enough to manage through another year of drought.

“Looking beyond this year, the outlook for California agriculture will depend on how much moisture the state receives, continued availability of groundwater and future regulations that impact access to surface and groundwater,” Sahling said.

CoBank is a $118 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colo., CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

Farm groups want extension of USDA's program eligibility deadline

Editor's Note: Agriculture Secretary Tom Vilsack announced May 27 USDA is extending the deadline for restructuring farm operations under the 2014 farm bill for one month from June 1 to July 1.

New payment limit rules are rarely good news for larger, commercial-sized producers of program crops, but the timing of USDA’s latest regulations regarding program eligibility could not have been much worse, farm groups say.
USDA announced new restrictions on the amount of payments growers can receive last Dec. 15. But it didn’t complete training on the new rules for country Farm Service Agency employees until late March, and many producers didn’t learn about them until March 28.
At press time, the organizations were awaiting a response to a letter they sent Agriculture Secretary Tom Vilsack asking him to extend the deadline from the current June 1 to the end of 2016 to allow time for growers to restructure their farming operations and remain eligible for program benefits.
“Most farming operations have negotiated lease agreements, secured production financing, made crop insurance decisions, selected which varieties of commodities to plant and, in many cases, have put seed in the ground,” said the letter, which was signed by 70 commodity and farm organizations.
“Unfortunately, the deadline to file status changes within a farm structure with FSA is June 1, well after these important decisions have been made.”

Loopholes

The new eligibility rules are based on language aimed at tightening the payment eligibility rules in the Agricultural Act of 2014. The author, Sen. Charles Grassley, R-Iowa, has said repeatedly he believes program payments should be restricted to small, “family farms.”
Grassley’s amendment said a farm can have one non-family member, a manager, who is also eligible for a farm program payment should one be made under the Agricultural Risk Coverage or Price Loss Coverage programs or loan deficiency payments.
USDA’s new regulations say farming operations can have an additional non-family member manager if the operation is in excess of 2,500 acres. It can have up to three managers if the operation isn’t just large but complex.
Bill Bridgforth, an attorney from Pine Bluff, Ark., who has worked on many restructurings of farm operations, says the situation is ludicrous on many fronts, including the fact Sen. Grassley has filed new legislation – the Farm Payment Loophole Elimination Act – which would restore his original language in the farm bill.
(Speaking at the Mid-South Agricultural and Environmental Law Conference, Bridgforth says he believes Sen. Grassley is dedicated to destroying production agriculture in America because of his stance on payment eligibility.)

One manager for 20,000 acres

“In Grassley’s bill, the manager listed would again be limited to one even if you farm 20,000 acres,” Bridgforth says. “He also takes issue with non-family members being easily involved in farming operations. The bill says if you’re a family member but aren’t active on the farm you can’t qualify for payments.
“He apparently doesn’t realize that the only family member that doesn’t have to qualify is a spouse. Whether he’s talking about doing away with the spouse rule, I don’t know but he’s trying to limit it.”
Further, the bill says a manager must do “management activity” performed on a regular, continuous and substantial basis and meet one of the following requirements: 25 percent of total management hours or at least 500 hours of management.
“If your client wants more than one manager, not only do they have to have the 500 hours and make particular management contributions, but they must maintain contemporaneous records or activity logs,” says Bridgforth.
“The records must include the location where the management activity was performed. Can you imagine? ‘Sitting at breakfast table with wife. Made decision to irrigate Field Six.’ Plus, you have to record how much time it took to make the management decision. If you’re driving down the highway and make a decision, you’re supposed to pull over to record it. It’s so onerous it seems obvious the rule was written by someone who’s never been involved in farming activity.”

2016 season already underway

The farm groups’ letter notes that because most farms already have made all their plans for the 2016 crop year and the growing season is underway, USDA should provide an extension of the June 1 status date to allow producers the time to thoughtfully make any necessary changes following this crop season and by the end of ’16.
“Without an extension of the status date, many farmers will be forced to hastily make critically important decisions about the structure of their farms that could have costly, negative consequences.”
To read the farm groups’ letter, click on http://www.cotton.org/issues/2016/upload/16engagelet.pdf
For more information on the Agricultural Act of 2014, visit http://1.usa.gov/1TGjgj0.

Saturday, May 28, 2016

IGC Increases Global Grain Production Forecast

LONDON (Dow Jones) -- The International Grains Council on Thursday increased its forecast for global grain production in 2016-17 by 10 million metric tons to 2.015 billion tons on improving prospects for the wheat harvest in the E.U., Russia and the U.S.
If the forecast is correct, the 2016-17 harvest will be the second-largest on record after the 2.046 billion-ton crop of 2014-15, the London-based IGC said.
The wheat crop forecast was lifted by 5 million tons to 722 million tons. The corn forecast was raised 5 million tons to 1.003 billion tons as harvest prospects improved in the U.S. and Argentina.
As a result, the IGC expects global grain stocks to climb from 468 million tons at the end of the current year to a record-high 474 million tons at the end of 2016-17. China's share of that total could exceed 40%.
For the current 2015-16 crop year, the IGC cut its forecast for soybean production by 5 million metric tons to 314 million tons, a 2% drop from the previous year's output, due to bad weather in South America.
In a "highly tentative" forecast for 2016-17, the IGC said soybean production could rebound to 320 million tons, but this year's smaller harvest and increasing demand will mean global stocks are likely to dwindle. It cut its soybean stocks forecast for the end of 2016-17 by 3 million tons to 29 million tons.

USDA Cuts FY 16 Export, Import Forecasts

U.S. ag exports are now forecast for Fiscal 2016 at $124.5 billion with imports slashed to a still-record $114.8 billion to boost the forecast U.S. ag trade surplus to $9.7 billion, USDA said in its updated Outlook for US Ag Exports.
In February, USDA had forecast ag exports at $125 billion against imports of $118.5 billion for a surplus of $6.5 billion.
On the export side, USDA raised their outlook for grain and feed exports to $27.7 billion, up $500 million from February on "larger wheat and corn volumes and higher unit values for corn and sorghum."
USDA also increased oilseed and product exports to $26.1 billion, a $700 million increase. But those increases were more than offset by a $100 million reduction for cotton exports; livestock, poultry and dairy also are projected down $300 million; and the biggest decline is a $1.2 billion reduction in horticultural product exports.
On the horticultural products, USDA noted, "This is the second consecutive quarter-to-quarter downward revision and the total would be the first year-over-year decline since Fiscal 2009. This reduction is mainly due to sharply lower unit prices of pistachios and walnuts, as well as reduced almond shipments to the EU and China."
As for imports, USDA cut the outlook $3.7 billion, to $114.8 billion, "mostly from a decline in tropical products."

Oklahoma Wheat Harvest Waits

Oklahoma wheat and canola farmers are waiting for fields to dry out enough for harvest after recent rains. Farmers’ stress levels are on the rise as they wait for the crops to dry out enough in the fields to allow combines to get rolling. Oklahoma’s Farm News Update reports storms on Wednesday night hit several north central Oklahoma counties. A tornado in Carver County knocked out power in several locations and a Burlington Northern-Santa Fe train may have derailed because of the twister. A lot of western Oklahoma had 90-degree weather on Wednesday, and if they can stay dry, the crops should dry out and be ready for harvest quickly. However, chances of rain continue this week so the best wheat harvest prospects are in areas that get missed by the rain.

National Farmers Union Defends Farmers at Hearing

The Senate Agriculture Committee held a hearing this week to discuss challenges and opportunities in the poultry and livestock sectors. The National Farmers Union defended much-needed market relief efforts because of the current low prices and a consolidated market facing farm families. Producers faced a drop in beef prices last year despite forecasts of higher than average prices. USDA forecasts show lower prices and higher beef production into 2017, and NFU President Roger Johnson said that will make it tough for producers to recover financial losses from the recent decline. The situation is more troubling because of a sharp decline in the number of family farmers and ranchers over the last decade due to a heavily concentrated cattle market. That makes it tougher for independent producers competing against packers. Roger Johnson said at the hearing that “the marketplace is tipped disproportionately against the family producer.” He said four packers currently account for 70 percent of the value of all livestock purchased for slaughter.

USCA Testimony Highlights Market Volatility, Opportunities for Success

WASHINGTON (May 26, 2016) – The United States Cattlemen’s Association (USCA) testified today during the Senate hearing, “A Review of the U.S. Livestock and Poultry Sectors: Marketplace Opportunities and Challenges”. Joe Goggins (Billings, Montana), Vice President Vermilion Ranch Co., Public Auction Yards, Billings Livestock Commission Co., Western Livestock Auction and Northern Livestock Video Auction, testified on behalf of USCA.

Goggins was joined on the hearing panel by Mr. Tracy Brunner, President, National Cattlemen's Beef Association; Mr. Ronald Truex, Chairman, United Egg Producers; Dr. Howard Hill, Past President, National Pork Producers Council; and Mr. John Zimmerman, Producer, National Turkey Federation/Minnesota Turkey Growers Association. The witnesses represented a wide range of voices in the livestock industry and brought unique perspectives from each sector of the supply chain.

Goggins’ testimony focused on the opportunities and challenges that lie ahead for the U.S. livestock industry while also noting several contributing factors to both the current market volatility and issues that will aid the industry in the years to come.

Goggins specifically referenced ways in which the industry can continue to enhance transparency, achieve market stability and encourage improvements and innovation across industry standards.  “The 2018 Farm Bill offers a timely vehicle for addressing many of the issues discussed today.  Whether it be a continued emphasis on beginning farmer and rancher programs or addressing necessary revisions and modernizations in current market regulations, today’s hearing offered a chance to spotlight these issues and begin constructive dialogue on each.”

Goggins reiterated a concluding point from his testimony, “We look forward to working with everyone in the livestock industry to examine the fundamentals and functions of the cattle market in order to bring back competition, transparency, and true price discovery.  I appreciate the opportunity to have testified today and thank Chairman Roberts and Ranking Member Stabenow for convening this hearing.”

Thursday, May 26, 2016

US Army Corps Of Engineers In California Enforcing Aspects Of Halted WOTUS Rule

(DTN) -- The waters of the United States rule may be halted nationally by a federal court but a district of the U.S. Army Corps of Engineers in California already is and has been enforcing aspects of the rule, according to testimony given to a U.S. Senate committee Tuesday.
A California scientist claims in written testimony to the Senate Committee on Environment and Public Works Subcommittee on Fisheries, Water and Wildlife, that Corps officials in the Sacramento district have been inconsistent in the way they make Clean Water Act determinations and have required permits for agriculture activities that are exempt.
Jody Gallaway, a California Farm Bureau member and a regulatory biologist who works with the Corps in the Sacramento district, said she expects reprisal from the Corps for coming forward about problems faced by her clients when it comes to agency interpretations of farming exemptions.
Gallaway stated that the Clean Water Act is "being abused by regulators to thwart, interrupt and challenge" existing farming operations.
"It was a difficult decision for me to provide testimony to this committee," she stated in her written testimony. "I hesitated to put my name, company, and 12 employees at risk because our work depends on maintaining a professional relationship with California-based Corps staff in the Sacramento, Redding and San Francisco offices."
Throughout the hearing Gallaway sat next to Don Parrish, senior director of regulatory relations for the American Farm Bureau Federation, but did not testify live before the committee.
The change in the Clean Water Act defining waters of the U.S. by EPA and the Corps has been tied up because of federal court battles. In recent months the U.S. Court of Appeals for the Sixth Circuit in Cincinnati ruled it has jurisdiction to hear numerous legal challenges to the rule. Agriculture and other industry interest groups are concerned the rule expands federal jurisdiction on private land.
Gallaway stated Corps officials in Sacramento began "jumping the gun" in August 2015 in implementing the rule even before it was finalized.
"I saw it when the Corps started automatically regulating additional features not historically hydrologically connected," Gallaway stated in the written testimony. Corps regulators expanded jurisdiction to features that could not be seen on the ground with the human eye. Gallaway's clients, who were in various planning stages of agricultural development and infrastructure projects became concerned, and frustrated.
When contacted by DTN for comment Tyler Stalker, deputy chief of public affairs for the Corps in Sacramento offered the following:
"The clean water rule has been stayed and we are interpreting the rules as defined prior to the clean water rule," he said.
William Buzbee, professor of law at Georgetown University Law Center, told the committee claims of regulatory overreach and expansion are "legally and factually erroneous" when it comes to the new rule.
"The clean water rule and connectivity report are directly responsive to the pleas and rulings of a majority of U.S. Supreme Court justices," he said. "Far from being illegal, they are directly responsive to Supreme Court law and well-grounded in peer-reviewed science and the long enduring Clean Water Act."
Farm groups have lamented EPA's new attempts to regulate land features using satellite imagery, as a possible violation of due process.
"No majority of the Supreme Court has ever so held, and the science contradicts this view," Buzbee said. "After all, much of the United States is often dry if not suffering from drought; when waters do flow, those channeling and connecting geographic features are of critical importance and require protection against pollutant discharges that will degrade precious and scarce water."
AG EXEMPTIONS
Parrish told the committee the Corps is paying no heed to agriculture exemptions.
When asked by Sen. James Inhofe, R-Okla., about whether the federal agencies are requiring farmers to obtain permits to do work involving otherwise-exempt agriculture activities Parrish responded, "Yes, Mr. Chairman, they are."
The concern, Parrish said, is what is happening in California will be reality for farmers across the country. The Sacramento district is regulating plowing, for example, which also is exempt.
"In the Corps' Sacramento district, any plowing no matter how shallow, in a WOTUS such as a vernal pool or ephemeral drain requires a permit," Parrish said. "The Corps issues threatening letters if farmers plow a fire break, change from alfalfa hay farming to cattle grazing and back to alfalfa hay farming or when the agency 'thinks' the farmer was plowing too deep or changing land use."
Damien Schiff, an attorney with the Pacific Legal Foundation pointed to the case of Fort Bridger, Wyoming, landowner Andy Johnson as an example of how the Corps and EPA may no longer follow the law with agriculture exemptions. Johnson had faced large penalties although he built a stock pond which is exempt from the Clean Water Act. Under a settlement, Johnson will not pay fines and won't need a permit.
Buzbee said the only activities regulated are those that lead to discharges to regulated waters, meaning "neither ordinary farming activities nor basic uses of lands, wetlands, and other covered waters are prohibited."

Administration Reacts to GIPSA Testimony

A spokeswoman for Ag Secretary Tom Vilsack said the administration finds opposition to the GIPSA rule “unacceptable.” The administration said the rule is designed to ensure fair treatment to livestock and poultry producers. The Hagstrom Report says opposition to the rule was heard during testimony at a House Ag subcommittee hearing. North Carolina Republican Representative David Rouzer, said, “It remains unclear why Secretary Vilsack decided to move forward with these costly regulations.” However, the spokeswoman said the recent GIPSA riders in past USDA funding bills represents “a complete lack of concern for hardworking families. The focus should be on providing a fair marketplace and level playing field for farm families.”

Corn Exports Add $74 Billion to Economy

US corn and corn product exports generated $74.7 billion in economic output in 2014. According to a study by Informa Economics, sales of all US feed grain products added $82 billion to the economy. The analysis says corn and corn product exports added 29.8 billion dollars to the GDP over what would have happened without those exports. The number of full-time jobs linked to those exports, either directly or indirectly, numbered over 330,000. The study also found that for every $1 of grain exports, it adds $3.23 in business sales across the US. The same study also found that if these exports were halted, over 47,000 jobs would be lost and $2.8 billion in GDP would be lost in the farming, ethanol production, and meat production industries alone. NCGA President Chip Bowling said the report underscores the need to approve the TPP, which would give farmers more access to the Asia/Pacific region.

House Committee Marks Up FY2017 Spending Bill

NCBA President Tracy Brunner said the spending bill marked up by the House Interior Appropriations Subcommittee has a number of good things for cattle producers. Specifically, this bill would defund the Environmental Protection Agency’s “Waters of the US” final rule. By defunding it, Congress will prevent members and taxpayers from expending more resources on future court battles. The bill also clarifies agricultural exemptions in the Section 404 process and continues defunding of new regulations under the Clean Air Act and Greenhouse Gas reporting for manure management systems. The Public Lands Council was pleased the bill would block the President’s administrative fee which would be on top of a grazing fee already raised by 25 percent earlier this year.

Cheese Stocks At Record High For Month Of April

The United States Department of Agriculture reported that natural cheese stocks are at a record high for the month of April. And that’s after 100 years of record keeping, says USDA.
Total natural cheese stocks stand at 1.2 billion lb., up 2% over March and 12% over April 2015.
American cheese stocks are up 2% over last month, and 15% over a year ago. Swiss is at similar levels of last month, but 2% higher than a year ago. And other natural cheese varieties are up 2% over March and 8% over a year ago.
Butter is also very much in abundance, with 298 million lb. in storage. That’s up 23% from March, and 28% from a year ago.

University Of Wisconsin Says Daily Prices Will Continue Low Levels

Dairy farmers across the country have been operating below the cost of production for quite some time. Unfortunately, the pain is likely to continue, according University of Wisconsin’s Bob Cropp. He says Class III milk prices are on their way to levels not seen since the 2009 dairy crisis. Cropp is forecasting the May Class III price to be $12.75/cwt. In 2015 the May Class III price was $16.00/cwt. Cropp says exports aren’t currently significant enough to make up for the increasing supplies

House Interior Appropriations Committee Marks Up FY17 Spending Bill


WASHINGTON (May 25, 2016) – Statement by National Cattlemen’s Beef Association President Tracy Brunner on the House Appropriations Subcommittee on Interior, Environment and Related Agencies mark-up of the fiscal 2017 spending bill:

“The spending bill marked up by the Interior Appropriations Subcommittee contained a number of priorities for cattlemen and women. Specifically this legislation would defund EPA’s ‘waters of the United States’ final rule. Cattle producers continue to voice their opposition to the flawed WOTUS rule and defunding by Congress would prevent our members and taxpayers from expending future resources on continued litigation. The bill also clarifies the agricultural exemptions in the section 404 permitting process and continues defunding of new regulations under the Clean Air Act and Greenhouse Gas reporting for manure management systems.”

Statement by Public Lands Council President Brenda Richards:

“Public lands ranchers were pleased to see several of our priorities addressed in the FY 2017 Interior spending bill. The bill maintains the one-year delay on further rulemaking or listing of the Greater Sage Grouse under the Endangered Species Act and blocks the President’s proposed administrative fee on top of the grazing fee that was already raised by 25 percent earlier this year. The bill also reduces funding for the Land and Water Conservation Fund at $322 million, restoring some responsibility and prioritizing state and local projects while reducing funding for land acquisition. We are pleased that Payment in Lieu of Taxes was fully funded, offsetting the loss of local tax revenue for public lands. Finally, the bill increases funding for wildfire suppression at $3.9 billion.

While these go a long way to meet the needs of the West, we were greatly disappointed to see that the bill did not include the broad bi-partisan language reining in the President’s abuse of the Antiquities Act.”

Montana meeting held to address grizzly bears' expansion onto prairie

An estimated 200 people attended the Montana Fish, Wildlife and Parks' meeting in Valier to discuss what agency officials said was an "exceptional" year for grizzly bear sightings on the prairies along the Rocky Mountain Front. Cattle and sheep producers urged more state and federal action to keep the bears away from livestock.

Montana Sage Grouse Oversight Team starts work on conservation plan

On Tuesday, the Montana Sage Grouse Oversight Team began their work to protect sage grouse and habitat by deciding which proposed conservation easements would share in the $5 million available for preserving habitat. Those lands will be put in a mitigation bank, which can be used for credits by development projects. Despite a lack of a "habitat quantification tool," which would assign rankings of each conservation project, members decided to forge ahead so landowners could tap into federal matching funds available this month.

Interior Sec'y tours Idaho wildfire rehab project, announces new $10M plan

On Tuesday, Interior Secretary Sally Jewell was in Idaho where she toured the Soda Fire restoration project in Owyhee County that embodies the federal government's new wildfire strategy, and she also announced $10 million in funding for projects in 12 states to reduce wildfire risk. Colorado and Utah will each receive $1 million to improve Gunnison sage grouse habitat. Idaho will get $500,000 to remove conifers from greater sage grouse habitat, and Southern Utah will get $3.5 million to improve habitat for that species.

JBS Completes Utah Beef Processing Complex

JBS USA has completed the expansion work on its Hyrum, Utah, beef processing complex that will allow the company to boost production by more than 400 head of cattle a day and increase product offerings, according to a report in The Herald Journal.
Employees toured the new facilities on Monday, the report said. The $75-million expansion project added new fabrication and ground beef facilities and a distribution center to the plant, which JBS purchased in 2007. The company has said the expansion would create about 120 new jobs.
The plant was originally built in 1936 by E.A. Miller Meat & Livestock Co. and processed nearly a half million head of cattle per year, with about 20 percent of its production exported to countries including Japan, Taiwan, Korea and Mexico.

Organization For Animal Health Recommends Strategy To Fight antimicrobial Resistance

The Paris-based World Organization for Animal Health (OIE) has recommended a strategy to fight antimicrobial resistance that aims to protect the effectiveness of antibiotics used in veterinary medicine and the molecules used in human medicine.
The organization asked its member nations to adopt the plan, which assists countries in preparing a legal framework to manage the problem and builds on international standards it developed and revised in 2015.
The OIE, which also helped develop the World Health Organization’s action plan against antimicrobial resistance, said the international initiatives can only work if they are supported at the national level in individual countries. But underfunded veterinary services, an absence of legislation to carry out mandates and the existence of parallel markets outside the control of health authorities remain consistent barriers.
The new plan will enable OIE to assist countries in carrying out the following actions:
  • regulate the manufacture, circulation and use of antimicrobials in animals, according to international standards;
  • train animal health professionals; 
  • communicate to raise awareness among stakeholders;
  • ensure veterinary supervision of antimicrobial use in animal health;
  • monitor antimicrobial use and the development of resistance.

STEM CELL DISCOVERY BOOSTS CORN YIELD DRAMATICALLY

Scientists from Cold Spring Harbor Laboratory (CSH) in New York have found a technique that boosted corn yields by up to 50% in an initial study. The team of scientists, led by David Jackson, isolated a chemical signal from the leaves of a plant that acts like a brake on stem cell growth to control the plant's growth and development.
In a CSH video, Jackson used an architecture analogy to help illustrate the signal's importance: "Architects make the plans and then they give those plans to a builder who lays down the bricks to make a foundation and the walls," he said. "So imagine those bricks are sending a signal back to the architect to change the way the house should look based on the local environment."
The scientists identified the receptor that receives this braking signal from the leaves, a structure called FEA3. They examined mutant plants where FEA3 didn't work properly and found that without the "brake" receptor, stem cells proliferated and overwhelmed the plant with the production of more kernels than it could support. Smaller ears and lower yielding plants were the result.
To reverse the effect, scientists grew FEA3 mutants with a weakened, but not disabled, receptor. With the "brake" released just slightly, more stem cells grew but not so many as to overwhelm the plant's resources. The resulting plants produced ears with more rows of kernels and a 50% higher yield than non-mutant corn plants.
This newly discovered regulatory pathway is common in most plants. Jackson and his colleagues are hopeful that it could be used to increase yield in many major crops beyond corn. For now, the scientists are testing the weakened FEA3 trait in elite, high-yielding corn hybrids and other crops. Their work is funded by a diverse group: DuPont Pioneer, the National Science Foundation Plant Genome Research Program, the Gatsby Charitable Foundation, the Swedish Research Council, and the Rural Development Administration of Republic of Korea.

House Lawmakers Propose Legislation To Spray Pesticides ON Water To Combat Mosquitos

(DTN) -- A federal requirement for permits to spray pesticides on water to combat mosquitos would be eliminated under legislation proposed by U.S. House of Representative lawmakers. The legislation is likely to fail, however, as the Obama administration Monday said in a statement it opposes the bill, rebranded last week as the "Zika Vector Control Act."
The bill comes as the president has criticized Congress for now passing funding to prevent more Zika cases in the U.S. Congress and the president have been battling over funding since the beginning of the year.
So House leaders repurposed the "Reducing Regulatory Burdens Act" into the Zika Vector Control Act without changing anything in the original bill. The legislation, which has bounced around Congress for years, would eliminate the federal requirements to get a permit to spray pesticides on or near water. This is something agricultural groups have wanted for years.
The Federal Insecticide, Fungicide, and Rodenticide Act requires spray applicators to obtain Clean Water Act permits to spray on water to combat mosquitos. Ag interests opposed the U.S. Environmental Protection Agency rule because of concerns about the costs to comply and that the requirement would make it difficult to address immediate mosquito concerns.
The Zika bill may come to the House floor for a vote this week. It likely is doomed to the veto pen as the Obama administration said in a statement Monday it does not support the legislation, saying it would "weaken" the Clean Water Act, and noting it was just rebranded.

Goule New CEO of National Wheat Growers

The National Association of Wheat Growers announced that Chandler Goule will be their new Chief Executive Officer. Goule is currently the Senior Vice President of Programs at the National Farmers Union. He comes to the Wheat Growers with 11 years of ag policy experience on the House side of Capitol Hill and takes over his new role on July 5th. Wheat Growers President Gordon Stoner, a grower from Outlook, Montana, said the industry is at a critical juncture, so “with Chandler’s guidance, we know the National Wheat Growers Association will be in a great position to advocate for all U.S. wheat producers. Stoner believes with all of Goule’s experience, he’ll provide beneficial guidance to the Wheat Growers when it comes time to draft the next Farm Bill.

Monsanto to Reject Bayer Bid, Seeks Higher Offer

Monsanto will reject the 62 billion dollar bid from Bayer and seek a higher price. Monsanto company officials say they believe a deal with the German-based Bayer could get antitrust and regulatory approval. That means a deal is not out of the question. However, the Monsanto Board of Directors says the current offer is incomplete and financially inadequate. Bayer will have to decide if it wants to raise its bid in the face of shareholder criticism that the $122 per-share price tag is already too high. Other options for Bayer include walking away from the deal or mounting a hostile takeover bid. Bayer said Monday it would finance the bid with a combination of debt and equity. The Monsanto Board of Directors has not set a timeline for further discussion with Bayer. Global agrochemical companies are trying to consolidate, in part, due to lower commodity prices. Seed and pesticide markets are also increasingly converging.

White House Threatens to Veto Energy and Water Bill

On Monday, the White House threatened to veto the House’s energy and water spending bill, which will hit the House floor this week. The House will consider the 37.4 billion dollar spending bill for 2017, which is slightly larger than what the Senate passed recently. The Hill reports the bill contains a host of environmental riders likely to turn off Democrats. In a statement issued through the Office of Management and Budget, the administration rejected what it called “highly problematic ideological provisions.” In particular, the administration wants more funding for the Advanced Research Projects Agency-Energy, as well as energy efficiency and renewable energy programs.   

TPP Moving Slowly in Japan

The U.S. is not the only country where momentum for getting the Trans-Pacific Partnership agreement passed has been slowed by politics. The Japanese government has also slowed its process to approve the deal despite formal debate being started in the legislature. The current session ends on June first, and sources say lawmakers are unlikely to vote on the TPP for a number of reasons. Politico says an April earthquake in the country has diverted legislative efforts to recovery, taking attention off TPP. Election politics are also in play as an election is set for July in the upper house of Japan’s bicameral legislature. Some lawmakers suggest the Prime Minister may want to see parallel movement on TPP in the U.S. and hopes ratification will take place in a similar timeframe to the United States.

El Nino Has Ended

El Nino has ended as the tropical Pacific Ocean has returned to a neutral state, and outlooks are suggesting no chance of returning to an El Nino state. Australia’s Bureau of Meteorology said that means mid-May marks the end of the event that reduced Indian rainfall, parched farmland in Asia, and reduced cocoa harvest in parts of Africa. Weather watchers are now waiting for La Nina, a cooling of tropical Pacific waters that some view as the opposite of El Nino. The US Climate Prediction Center says there is a 75 percent chance it will develop by years’ end, but some models say it could develop sooner. La Nina can upset agricultural markets as it can change the weather, including more hurricanes in the Atlantic and produce more heavy rains in India and Indonesia. The El Nino that just ended was one of the hottest on record, generating the hottest global temperatures in more than 130 years. 

Oregon hearing on Owyhee wilderness sparks stand-off warning

At an informational hearing Monday before the Oregon House Interim Committee On Rural Communities, Land Use and Water on a proposal to designate 2.5 million acres of canyonlands and desert in southeastern Oregon into a federally protected monument, ranchers showed up in droves to protest the plan, which would affect grazing leases. Malheur County Sheriff Brian Wolfe said he feared such a designation would spark another armed standoff like the one earlier this year at the Malheur National Wildlife Refuge, although ranchers dismissed such an action.

Cold Storage Report Shows Plentiful Supplies

USDA’s monthly Cold Storage report showed plentiful supplies of meat, which analysts expect to keep meat price inflation down over the summer months.
“We would view the results as generally supportive for beef prices, neutral to slightly negative for pork and negative for chicken,” wrote the analysts in the Daily Livestock Report.
USDA estimated total frozen poultry supplies on April 30, 2016 were up 4 percent from the previous month and up 4 percent from a year ago.
Total stocks of chicken were up 2 percent from the previous month and up 5 percent from last year. Total pounds of turkey in freezers were up 8 percent from last month and up 1 percent from April 30, 2015.
Total red meat supplies in freezers were up slightly from the previous month but down 8 percent from last year.
Total pounds of beef in freezers were down 3 percent from the previous month and down 7 percent from last year. The DLR analysts noted this decline came even as beef slaughter is up from a year ago. Stephens Inc. analyst Farha Aslam attributed the lower stocks, in part, to lower beef imports.  
Frozen pork supplies were up 4 percent from the previous month but down 9 percent from last year. Stocks of pork bellies were up 12 percent from last month and up 3 percent from last year. The DLR analysts said this build up in supplies was typical of this time of year and Aslam noted increased pork exports were helping demand. 

Food Label Program Overhaul Coming

The percentage of U.S. consumers who read federally mandated nutrition labels on food products is declining even as the Food and Drug Administration (FDA) moves forward with plans to overhaul the program, according to a new report from NPD Group.
The global research company said 24 percent of consumers surveyed now do not read the labels, a sharp increase from the 15 percent reported 10 years ago. Consumers who do read the labels also have shifted their focus toward the amount of sugars included per serving rather than the calories that generated the most attention in previous surveys. Calorie counts are now the second-most popular item checked by consumers these days, NPD reported.
The fact that labels have not been updated for 20 years is one of the reasons consumers are tuning them out, explained Darren Seifer, food and beverage industry analyst at NPD. “The fact that there is a new label and it will be more reflective of consumer interests and how they actually eat may recapture their interest,” he added.
The FDA changes include listing added sugars for the very first time in addition using portion or serving sizes that better reflect what the average consumer actually eats. The FDA estimates that about 20 percent of all nutrition labels will be affected by the changes and food manufacturers will have until July 2018 to comply with the new rules.

Friday, May 20, 2016

April Milk Production up 1.2 Percent

The monthly USDA milk production report finds production for April was 1.2 percent higher compared to the same period last year. Milk production in the 23 major milk producing states during April totaled roughly 18 billion pounds. USDA also revised the March production to 17.2 billion pounds, up 1.8 percent from March of 2015. The March revision represents an increase of seven million pounds or less than 0.1 percent from last month's preliminary production estimate. The number of milk cows on farms in the 23 major states was 8.65 million head, 21,000 head more than April of 2015, and 4,000 head more than March of this year. USDA also says production per cow in the 23 major States averaged 1,900 some pounds for April, the highest production per cow for the month of April since the 23 state report began in 2003.

Monsanto Reviewing Bayer Proposal

Monsanto publicly announced late Wednesday that the company was reviewing a proposal by Bayer AG to acquire Monsanto. Earlier in the week, BASF and Bayer were reportedly interested in acquiring the St. Louis, Missouri-based company. Monsanto confirmed the company has received what officials call an “unsolicited, non-binding proposal” from Bayer, subject to “due diligence, regulatory approvals and other conditions.” Further, the company says the Board of Directors of Monsanto is reviewing the proposal, in consultation with its financial and legal advisors. The proposal by Bayer comes a year after Monsanto was making offers to purchase Swiss-based Syngenta worth up to $46 billion. However, state-owned ChemChina and Syngenta agreed to an all-cash deal worth $43 billion.

Health Concerns Delay EU vote on Glyphosate

European Union countries have chosen to delay a vote that would allow the continued sale and use of glyphosate herbicides, leaving little time before the EU license for glyphosate expires. A spokesperson for the European Commission said since a majority could not be reached, no vote was held this week as previously planned, according to the Wall Street Journal. The commission had proposed to reauthorize glyphosate for nine years once its current sales license runs out next month. After failing to receive a majority approval in March, the commission had reduced the proposed authorization from to nine years to 15 years. Glyphosate is one of the most popular weed killers in the EU. Complicating the vote is the World Health Organization’s International Agency for Research on Cancer findings last year that say glyphosate probably has the potential to cause cancer in humans. If the commission fails to vote before June 30th, glyphosate sales and use will no longer be authorized in the EU.

Senate Ag Committee Holds Farm Credit Hearing

Farm groups confirmed their support for the Farm Credit System as the Senate Agriculture Committee held a hearing Thursday regarding farm lending. Two panels gave testimony during the hearing titled “The Farm Credit System: Oversight and Outlook of the Current Economic Climate.” More than 50 farm groups wrote the Senate Agriculture Committee this week telling lawmakers the current farm economy makes “the role of the Farm Credit System more important than ever.” The American Farm Bureau Federation says the array of credit products offered by both the Farm Credit System and commercial banks ensures farmers and their industry sector partners have access to financial tools that are vital to their success. Committee Chairman Pat Roberts, a Republican from Kansas, announced at the opening of the hearing that the Farm Service Agency has seen a 21 percent increase in farm loans compared to last year.

International Trade Commision Says TPP Would Be Gain For US Dairy Industry

The International Trade Commission (ITC) reported this week the Trans Pacific Partnership (TPP) would be a $1.5 billion net gain for the U.S. dairy industry by 2032, with total U.S. dairy output growing 1.3%.
The report estimates dairy exports to TPP countries would grow by some $1.846 billion while imports would increase by roughly $350 million.  In percentage terms, dairy exports to TPP countries would grow 18% while imports would grow 10%.
The ITC says the greatest export opportunities offered by TPP are to Canada, Japan and Vietnam. “But U.S. exporters would still face restrictive  tariff rate quotas (TRQ) for certain products in large TPP markets such as Japan and Canada that would limit the growth of U.S. exports even after full TPP implementation,” states the report.
On the import side, trade partners would be granted additional access. But the ITC says many of the additional TRQ volumes granted under the agreement would likely not be filled. That’s because countries such as Canada and Peru are already net importers of dairy products, and would have limited products to export.
The ITC also does not see a threat from New Zealand, even though it would be granted more access, especially as the agreement progresses 15 and 20 years down the road. “Exporters such as New Zealand produce dairy products more suited to China and other Asian markets, such as whole milk powder, a product not demanded in high volumes in the United States,” says the report. Plus, the U.S. dairy industry is highly competitive in other products New Zealand might want to export.
For their part, TPP is a historic pact, say Tom Suber, president of the the U.S. Dairy Export Council and Jim Mulhern, president and CEO of the National Milk Producers Federation, in a joint statement issued this morning. They add: "Included in the deal are ground breaking new commitments on sanitary and phytosanitary issues and significant improvements in how geographical indications (generic trade names) are handled.
"But the benefits of the TPP can only be realized is the United States assures that signatories live up to their commitments under the agreement as well as their prior trade agreement." 

Lawmakers Introduce Legislation For National Date Labeling System

Lawmakers on Wednesday introduced legislation to establish a uniform national date labeling system to simplify regulatory compliance for companies and reduce food waste.
Sen. Richard Blumenthal (D-Conn.) and Rep. Chellie Pingree (D-Maine) called the variety of labels — such as “sell by,” “use by” and “expires on” — confusing to consumers, adding that the confusion contributes to 90 percent of Americans prematurely tossing perfectly safe food.
“Items at the grocery store are stamped with a jumble of arbitrary food date labels that that are not based on safety or science. This dizzying patchwork confuses consumers, results in food waste, and prevents good food from being donated to those who need it most,” Blumenthal said in a news release.
The Food Date Labeling Act would establish a uniform national system for date labeling that clearly distinguishes between foods that bear a label indicating peak quality from foods that bear a label indicating they may become unsafe to consume past the date. The bill would also ensure that food is allowed to be sold or donated after its quality date and educate consumers about the meaning of new labels so that they can make better economic and safety decisions.
The announcement comes on the heels of a report by the Harvard Food Law and Policy Clinic and other groups that concluded that consumer confusion over date labels is a significant factor contributing to food waste.
About 40 percent of the food produced in the United States goes uneaten, resulting in 62.5 million tons of wasted food each year, the groups said. Consumers interpret date labels to mean that the food is no longer safe to eat.
“Without uniformity in the system, consumers are tossing out millions of pounds of perfectly healthy and safe food because a mishmash of labeling practices are telling them it's the right thing to do,” added Sally Greenberg, executive director of the National Consumer League. “America's food waste — throwing out 25 percent of the food we buy — has environmental, financial, and moral consequences, and the food waste epidemic is at a tipping point.”

USW Ready to Help Customers Adjust to Columbia Snake River System Upgrade

U.S. wheat importers are likely aware that the Columbia Snake River System (CSRS) will close for extended maintenance beginning Dec. 12, 2016, and ending March 20, 2017. This will allow the U.S. Army Corps of Engineers to make essential renovations to all the navigation locks on the Columbia River and the Snake RiverNo barge traffic will be able to pass during this time. 

USW welcomes this investment as a critical need that will underpin the United States as the world’s most reliable wheat supplier to our customers for years to come. However, importers may be concerned about supply, cost impact and logistical options because of the closure. We take those concerns seriously and want to help you minimize any possible impact before, during and after the river system closure. 

Such extended closures are unusual, but as our overseas customers learned during the last extended closure in 2010/11, the entire PNW system is fully capable of ensuring an uninterrupted supply of wheat to export terminals. 

USW believes the industry will consider every logistical option to keep wheat — especially SW wheat — flowing to export elevators. Significant changes will help make this closure more manageable. For example, total export terminal storage capacity on the Columbia River has grown substantially since 2011. The addition of a brand new terminal, plus the construction of new storage at several others, has increased storage capacity from 564,000 MT to 866,000 MT today. The PNW’s total up-country grain storage capacity has also grown to 17.3 MMT from 16.4 MMT. 
Rail shipments made up 54 percent of SW wheat sourced by rail during the outage in 2010/11. Rail shipping will likely make up most of the barge capacity shortfall during this closure as well. PNW exporters already source an estimated 80 percent of their HRW and 90 percent of their HRS supplies by rail. For SW to move west, rail sourcing will have to increase as much as 25 percent (see chart below). Fortunately, railroads have been investing in capacity, and there are now four shuttle train-loading terminals in eastern Washington, compared to two that were operational in 2010/11. The system is even better prepared to meet demand in 2016/17.   

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How U.S. Wheat Normally Moves to PNW Export Terminals 

Wheat Class        Barge Delivery            Rail Delivery 
SW/Club        75%                    25% 
HRW                20%                    80% 
HRS                10%                    90%   

Source: USDA 

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Given advanced notice of the closure, exporters, grain originators, barge operators, railroads and trucking lines are already planning to minimize interruptions and costs. Alternatives include: 
·        Pre-positioning the maximum number of barges to load SW before the closing (the Bonneville Lock and Dam should re-open after 8 weeks, which would open facilities up river to The Dalles, about 307 km east of Portland); 
·        Moving more rail cars and locomotives into the region to handle increased demand from rail-loading interior elevators; 
·        Coordinating truck and rail delivery from the Willamette Valley, south of Portland. 

Buyers can help themselves by preparing for the maintenance period. USW believes there will be sufficient volume of all U.S. wheat classes normally available from the PNW. Buyers can also help lower the risk of interruption and minimize potential costs by taking a longer view of their purchase needs. 

USW advises its customers to consider: 
·        Consulting with PNW exporters as early as possible to help give exporters more time to respond to your needs and to manage their logistical challenges. 
·        Scheduling a meeting soon with the local USW representative to identify buying strategies that fit specific needs and capabilities; 
·        Analyzing inventory needs and logistical capabilities; 
·        Increasing SW purchases now through harvest (export prices generally are at their lowest in June; see U.S. Wheat Export Price Cycle in Buyers’ Favor above) 
·        Increasing SW wheat and/or flour storage; 
·        Deferring as an offset some HRW and HRS shipments from the immediate post-harvest period into the maintenance period. 

As an objective voice for U.S. wheat producers, USW greatly values the trust customers have in our products and service. Our focus remains fixed on helping buyers, millers and wheat food processors learn how to grow their enterprises using our wheat. Working together, we believe we can help ease any concerns related to the closure and even strengthen our partnership. We look forward to assisting you now, as always. 

About the Columbia Snake River System. The CSRS is a vital transportation link for wheat producers in the states of Idaho, Montana, Oregon and Washington. The economies of these four states rely heavily on the commerce that flows up and down this system. The CSRS is the #1 U.S. wheat export gateway. The deep draft channel supports 46 million tons of cargo each year, valued at $20 billion. The inland system supports more than 9 million tons of cargo. 

For more information, visit the Pacific Northwest Waterways Association online at http://www.pnwa.net/.