Canadian Fertilizer Company Profits Drop In 3rd Quarter

(Dow Jones) -- Potash Corp. of Saskatchewan Inc.'s third-quarter profit and sales came in well below year-earlier levels as a continued slump in fertilizer-nutrient prices outweighed a pickup in volumes.The big Saskatoon, Saskatchewan-based fertilizer company, which earlier this year agreed to merge with peer Agrium Inc., said potash sales volumes were a record in the quarter, and spot prices for the key fertilizer ingredient were up about 15% from lows earlier in the year. Still, on a year-over-year basis, potash prices slumped about 40%, offsetting record potash sales volumes of 2.5 million metric tons.Prices for nitrogen and phosphate, two other key fertilizer components produced by the company, were also well below year-earlier levels.Overall, Potash's third-quarter earnings fell 71% to $81 million, or 10 cents a share. Analysts were expecting earnings of 9 cents, according to FactSet.Sales fell 26% to $1.14 billion. 

USDA Announces CRP Payments; Acreage Cap Looms

Payments totaling nearly $1.6 billion under the Conservation Reserve Program (CRP) have been issued, according to USDA, on nearly 24 million acres of ground in the program. Sources, however, signal the 24-million-acre cap on the program for Fiscal 2017 looms as a factor ahead for the program.Data from USDA at the end of August indicated that the agency enrolled 411,000 acres of ground into the program under the last general signup held, 101,000 acres under the new CRP-Grasslands effort and it showed 836,000 acres had been enrolled during Fiscal 2016 under the continuous signup effort.However, in announcing the CRP payments, USDA said the level of acres enrolled via the continuous signup for Fiscal 2016 was 1.3 million acres, about double the Fiscal 2015 level.Given that there were 23.9 million acres in the program as Fiscal 2016 wound down, with new entries that have contract starts of Fiscal 2017 via the general signup and grassland effort, plus 1.67 million acres of contracts maturing, sources did not provide a specific total of how much ground is now in the CRP. But, that level is "pretty close" to the 24 million acre limit that is in place for Fiscal 2017, one source advised.USDA data show contracts on 2.52 million acres of ground will mature as of September 30, 2017, freeing up space in the program. Of those, 1.98 million acres are from general signups and 540,000 are from continuous signups. 

Farm Lending Declined in Third Quarter 2016

 The Kansas City Federal Reserve Bank says farm lending at commercial banks fell in the third quarter of 2016 but remained elevated as lenders continued to assess the downturn in the U.S. agricultural economy. In a new report, the bank said the need for short-term financing in the farm sector remained high as profit margins remained weak. The volume of farm loans originated in the third quarter decreased about 19 percent from a year ago but remained elevated by historical standards. Consistent with recent trends, the Fed report said loans for operating expenses continued to drive the demand for new loans. So far in 2016, loans used to finance operating expenses total about 70 percent of all non-real estate farm loans and nearly 60 percent of total loan volume.

Trade Essential for U.S. Beef and Poultry Markets in 2017

An analyst with Rabobank says “all roads lead to China” when describing the potential for the U.S. poultry sector’s success in 2017. At the National Chicken Council annual meeting last week, Will Sawyer said trade with China would be critical to the success of the U.S. poultry sector next year, while another analyst said trade was the key to the U.S. beef sector. Meatingplace reports expected increases in supplies and decreased prices of chicken, beef, pork and grain had a panel of analysts at the meeting thinking along the same lines. Their expectations were more or less in line with USDA forecasts for 2017 compared with 2016. Sawyer’s enthusiasm for the Chinese market for U.S. chicken comes as China’s poultry production is expected to decrease by 10 to 15 percent in 2017 from 2016.

Biodiesel Industry Urges Extension of Tax Incentive

The National Biodiesel Board is urging Congress to extend the biodiesel tax incentive before it expires on December 31st. In a letter to House and Senate tax committee leaders last week, NBB says failure to support the extension could lead biodiesel producers to “cut jobs and production,” at a time when they are “poised to expand and hire.” Policy stability will help the industry sustain growth, according to NBB leaders. The letter to lawmakers says the growth of the U.S. biodiesel industry in recent years is paying tremendous dividends in reducing emissions, strengthening energy security and creating jobs and economic activity in every state. NBB says the biodiesel industry supports nearly 48,000 jobs and $1.9 billion in wages across the country.

Vilsack as Chief of Staff for Clinton Possible

Politico speculates again that current Agriculture Secretary Tom Vilsack could be in position to become Hillary Clinton’s Chief of Staff, should Clinton beat Donald Trump in the presidential election. Clinton campaign chairman John Podesta is Clinton’s top pick for the post, but has made it clear he does not want the same job he held during the Bill Clinton administration. More than half a dozen insiders have told Politico that Vilsack, a decades-long Clinton ally, is being widely discussed for the position. However, Vilsack finds himself in the same spot he was in during the Vice President search for Clinton—a top-tier contender, but facing stiff competition. Beyond Podesta and Vilsack, Joe Biden chief of staff Ron Klain and Clinton policy adviser Jake Sullivan are also being considered. As for whom a Clinton administration might pick for Vilsack's current seat, Politico says the top contenders to lead USDA include California’s agriculture secretary Karen Ross, former Arkansas Senator Blanche Lincoln, former USDA deputy secretary Kathleen Merrigan, Colorado Governor John Hickenlooper and former Kentucky Governor Steve Beshear. The Clinton Transition team told the Hagstrom Report last week she may even choose a Republican Agriculture Secretary, should she become President.

Amazon Targeting Grocery Sector

Online retailer Amazon wants to open 20 grocery stores over the next two years and believes the U.S. market has room for up to 2,000 of the Amazon Fresh-branded stores in the next decade. Business Insider reports Amazon is planning to operate a 20-location pilot program for its grocery stores by the end of 2018, in places like Seattle, Las Vegas, New York, Miami, and the San Francisco Bay Area. The company wants to experiment with different versions of stores during the pilot program. Ten of the grocery stores will be "click-and-collect" drive-up spots for Amazon customers to pick up their online orders. The other ten will be traditional stores allowing shoppers to stroll the aisles. While the business plans could change, physical stores are becoming increasingly central to Amazon's business ambitions. Amazon has studied the move for years and if the pilot program is successful could start opening 200 stores a year.

World Wildlife Numbers Down 60 Percent Since 1970

A new report from the World Wildlife Fund says populations of wildlife around the globe have plunged near 60 percent since 1970. Reuters says the data shows conservation efforts in the last 40 years have proven stagnant as human activities overwhelm the environment. An index compiled with data from the Zoological Society of London to measure the abundance of biodiversity was down 58 percent from 1970 to 2012 and would fall 67 percent by 2020 on current trends, according to the World Wildlife Fund report. The index tracks about 14,200 populations of 3,700 species of vertebrates - creatures that range in size from pea-sized frogs to 100 foot-long whales. And the report claims the rising human population is threatening wildlife by clearing land for farms and cities, while other factors include pollution, invasive species, hunting and climate change. 

OIG Finds BLM Wild Horse and Burro Programs Out of Compliance

WASHINGTON (Oct. 28, 2016) – In a report from the Office of Inspector General for the Department of the Interior, the OIG found the Bureau of Land Management’s wild horse and burro program does not maximize efficiencies and is not compliant with federal regulation. Public Lands Council President and Utah rancher, Dave Eliason, said this report confirms what public lands ranchers have long known to be true.

“The fact is that wild horse and burro populations are growing at unsustainable rates on our nation’s public lands,” said Eliason. “The unchecked growth of these populations threatens the productivity of public grasslands and the health and welfare of the wild horse and burro populations. The BLM’s solution has been to move more of these wild horses and burros off the range and into short-term holding facilities, some horses being held in those facilities for an average of five years, rather than transporting horses to the under-utilized long-term holding facilities. The OIG report points out that this solution is not financially sustainable or efficient.”

The BLM was charged under the Wild Free-Roaming Horse and Burros Act of 1971 with managing and protecting the nation’s wild horses and burros. Under BLM’s management, horse and burro populations have exponentially exceeded the appropriate management levels and continue to grow at a rate of 20 percent per year. Additionally, 45,000 horses and burros remain in long-term holding facilities at a cost to taxpayers of $50,000 per animal.

“It is clear that we must manage our wild horse and burro population to ensure we meet sustainable appropriate management levels,” said Eliason. “Earlier this year the BLM’s own Wild Horse and Burro Advisory Board recommended selling horses to private owners and euthanizing animals that cannot be sold. Wild horses and burros are a part of our nation’s heritage, but no one wins when these populations outgrow the resources available.”

OIG recommends BLM develop and implement policy to use appropriate rate determinations and adjustments for wild horse and burro populations and a plan for sustainable on and off-range population management. The report finds that implementing these strategies and maximizing the transition to long-term facilities would save taxpayers $3.7 million. PLC urges the BLM to allow for the sale of wild horses and restore a thriving ecological balance. 

Montana Livestock Producers Reminded To Enroll In LFP Program By January 30, 2017

Livestock producers in 14 Montana counties have until Jan. 30, 2017 to enroll in the 2016 Livestock Forage Disaster Program (LFP)Eligible 2016 LFP counties include Big Horn, Carbon, Carter, Fallon, Flathead, Granite, Lewis and Clark, Missoula, Park, Powder River, Powell, Stillwater, Sweet Grass and Teton.LFP provides compensation to eligible livestock producers in qualifying counties for drought on dryland pasture. Eligible livestock producers must own or lease dryland pasture physically located in a qualifying county and eligible livestock must use this ground during the normal grazing period for the county. The following 14 counties have met the qualifying drought criteria for 2016 in Montana: Big Horn, Carbon, Carter, Fallon, Flathead, Granite, Lewis and Clark, Missoula, Park, Powder River, Powell, Stillwater, Sweet Grass and Teton. Livestock eligible for LFP include alpacas, beef cattle over 500 lbs, buffalo, beefalo, dairy cattle, deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep or swine that have been or would have been grazing the eligible grazing land or pastureland during the county’s grazing period. Eligible land includes dryland native pasture, improved pasture, and small grains, annual ryegrass and forage sorghum planted specifically for grazing.   Irrigated acres used for grazing or aftermath grazing are not eligible under this program. If all eligibility requirements are met, livestock producers in Carter County will receive for four monthly payments; livestock producers in the following 13 counties will receive one monthly payment: Big Horn, Carbon, Fallon, Flathead, Granite, Lewis and Clark, Missoula, Park, Powder River, Powell, Stillwater, Sweet Grass and Teton. Livestock producers are encouraged to contact their local FSA office with any questions regarding eligibility.Producers must complete an application and provide supporting documentation for 2016 losses by Jan. 30, 2017. Please contact the local FSA office ASAP to schedule an appointment to begin the application process and for questions on FSA programs.  For more information, visit Montana FSA online at www.fsa.usda.gov/mt and www.usda.gov/disaster. 

Conservative Republicans Step Up Opposition to Extending Energy Tax Credits

A coalition of conservative groups has again called for lawmakers to reject a package of renewable energy tax credits that supporters claim was mistakenly left off last year’s Fiscal 2016 omnibus spending bill negotiations.The group of 47 conservative organizations wrote to congressional leadership to prevent consideration of a provision to extend tax credits for certain wind energy facilities, geothermal heat pumps and fuel cell projects, all of which expire at the end of this year. The effort is being led by the Heritage Foundation and the Koch brothers-backed Americans for Prosperity.Majority Leader Mitch McConnell, R-Ky., said during a Sept. 29 news conference that the Senate could “take a look at” the tax extenders during the lame duck session while Minority Leader Harry Reid, D-Nev., has been pushing an extension of the credits for most of 2016.As part of the tax extender deal, as well as the Fiscal 2016 omnibus spending bill, Congress agreed to a separate five-year extension of major wind production and solar investment tax credits. The measure, however, did not address credits for investments in geothermal, combined heat and power properties, fuel cell facilities and smaller wind projects. Both sides of the aisle have acknowledged that those credits were mistakenly left out, but Congress has yet to find an appropriate place to attach the extension.The conservative groups have pushed back against the need for any of the renewable energy tax credits, arguing for an open market approach to energy, rather than allowing the federal government to choose “winners and losers” through favorable policies. “Government subsidies, loans, mandates, and tax policies regarding renewables have consistently failed to deliver on their promises of long-term job creation and economic viability,” the groups wrote. “Americans deserve access to energy solutions that are affordable and reliable — ones that should be able to stand on their own in the marketplace.”The White House has made extending the left-out subsidies a priority in the lame-duck session of Congress, coordinating with the Democratic leadership for what one senior White House adviser called a clean energy "end game." 

Farmers Willing to Walk Away from Cash Rent Agreements

A recent Farm Journal poll on Twitter showed 57 percent of respondents are willing to walk away from cash rental agreements if they can’t be renegotiated. Even more surprising is the Pro Farmer Landowner Survey that showed farmers saying if land prices don’t come down, they may walk away too. “44 percent of our members and subscribers are willing to walk away from a cash lease if it can’t be lowered in 2017,” said Mike Walsten, Editor of the Pro Farmer Landowner newsletter. Walsten said the number of farmers willing to walk away from cash rent agreements is up to 14 percent, which means cash rent conversations could be even tougher this year than they were last year. He said land values could also see a drop, but probably not as much as in years past. However, these numbers don’t mean there isn’t a market out there for farmland. Walsten said when the chance to acquire new acres comes up, there are farmers that come looking for the right price. “We see that 30 percent of our audience is willing to get back into the land market if the right price comes along,” Walsten said. 

Administration Given More Time to Defend WOTUS

The Environmental Protection Agency and the U.S. Army Corps of Engineers now have an extra month to file their defense of the Waters of the U.S. Rule, or WOTUS. Pro Farmer’s First Thing Today says the Sixth Circuit Court of Appeals extended the deadline to file their response in defense of the rule from December 23rd of this year to January 18th of 2017. The Justice Department asked for extra time after states, businesses, and other municipal groups challenging the rule were given extra time to file their briefs. Those groups have until November 1 to file their paperwork with the court. The Justice Department will file a consolidated brief on behalf of the EPA and the Corps. The court also set a deadline of February 19, 2017, for intervenors to file briefs either in support of or opposition to the rule.

Trade Deal Between Canada and EU Back On

The Prime Minister of Belgium and other political leaders have reached a consensus supporting the proposed trade deal between Canada and the European Union. The French-speaking region of Wallonia was primarily responsible for holding up the deal. Officials in the Socialist region wanted stronger protections for labor, as well as stronger environmental and consumer standards. The leaders of the different regions in Belgium drew up an addendum that answered additional concerns. Part of the trade agreement involved creating courts to handle disputes between businesses and governments. An article on BBC Dot Com says Wallonia was concerned that would give too much power to multinational entities. They also wanted protections for Wallonia’s farmers, who would now face competition from Canadian imports. Belgian federal law says the country cannot approve any type of deal until the six regional parliaments have all signed off on it. The deal with the Belgians will still have to get approval from the 27 other nations in the European Union

Poll Shows Trump Leading in Farm Country

A new nationwide poll is out that shows farmers and ranchers favoring Donald Trump over Hillary Clinton in the presidential sweepstakes. 55 percent of respondents in the Agri-Pulse Farm and Ranch Poll say they’ll vote for the Republican candidate while 18 percent say they’ll cast a vote for Democrat Hillary Clinton. The poll shows two percent of the respondents planning to vote for Libertarian candidate Gary Johnson and one percent casting a vote for Green Party candidate Jill Stein. However, those numbers could change as 15 percent of the respondents remain undecided and eight percent refused to answer the question as to who they were supporting. Trump attracted 59 percent of the male voters and 37 percent of female voters. Clinton drew support from 15 percent of males and 33 percent of females. The GOP nominee scored particularly well in two battleground states, with 68 percent of Ohio farmers and ranchers supporting Trump and 58 percent of farmers and ranchers in Florida also said they will support Trump. 86 percent of respondents were “somewhat” or “very dissatisfied” with the way things are going in the country, which is higher than the 75 percent number back in a January survey. 

Wet Fields In Canada Turning Durum Wheat Crop Into Soggy Mess

Wet fields in Canada are turning what was supposed to be a stellar crop of durum wheat into a soggy mess, much to the dismay of pasta makers.The prospects for quality durum have been dashed by rain and snow that has delayed and even halted operations. The wheat that’s stuck outside is vulnerable to disease because of the wet conditions. The high-protein grain makes up the bulk of pasta ingredient expenses, and domestic prices have risen in the last several years after repeated harvest hurdles.To see the pain for pasta makers, look no further than Chris Curran, the 50-year-old owner of Bagga Pasta, which annually makes 25,000 kilograms (55,000 pounds) of everything from fusilli to linguine in Victoria, British Columbia. The 20-kilogram bags of durum flour she buys now cost about C$30 ($22.44), almost double the C$16 she paid about three years ago. And because of the quality problems for this year’s crop, she’s not expecting prices to fall anytime soon.“Instead of the price going down as I would’ve expected, it will probably remain the same,” said Curran, who added that it’s the first time in her 30 years of pasta-making that she’s seen this kind of sustained jump in costs. “We’re just a very small company trying to survive amid very high prices.”Fungal DiseaseThe quality problems are coming as farmers are poised to harvest record durum supplies in Canada, the world’s top exporter of the variety. But the wet fields mean that some of the crop is damaged by the fungal disease fusarium, which can hurt yields and produce chemicals known as mycotoxins that can be poisonous for humans or livestock. With less high-quality crop available, grain companies are struggling to find enough supplies that are suitable to be milled into flour for pasta, said Jerry Klassen, a manager of Canadian operations and trading at Gap SA Grains & Produits in Winnipeg, Manitoba.Prices for high-quality durum have risen to more than C$8 a bushel, up from about C$6.50 to C$7 before the harvest, said Chuck Penner, the owner of LeftField Commodity Research in Winnipeg, Manitoba. Canada will probably see a drop in exports as overseas buyers don’t want low-quality durum, and some supplies may not even be fit to feed livestock because of fungal contamination, he said. Other staple Canadian crops, including canola, oats and spring wheat, have also seen price gains because of harvest problems. The Canadian Pacific Railroad Ltd. this month cut its profit target for the year partly as grain shipments in western regions fell behind schedule because of the heavy rain. Light rain and a lack of cold to freeze the ground are continuing to hinder the country’s wheat and canola harvest, Commodity Weather Group said in an e-mailed report Thursday.U.S. OutputThe reprieve for flour millers may come from their southern neighbor. U.S. farmers are forecast by the government to collect the biggest durum crop in seven years. Quality issues have been limited compared with Canada, though farmers are still dealing with some fungal damage. Globally, inventories of all wheat varieties are poised to reach an all-time high, and benchmark futures in Chicago are down almost 13 percent this year. 

USDA Announces Loans For Rural Electric Grid

(DTN) -- USDA announced on Wednesday the release of nearly $3.6 billion in loans for projects across 31 states to improve the rural electric grid.The funding will build or improve 12,500 miles of transmission and distribution lines. That includes $216 million for smart grid technologies. Such technology uses remote controls or automation to increase or reduce power loads at certain times or better alert companies to problems in their distribution system.The largest single loan is to Oglethorpe Power Corporation in Georgia for a $448 million loan for generation improvements for 41 rural electric cooperative utilities across the state. The national Rural Utilities Finance Corp in Virginia received $375 million to provide loan guarantees to rural electric cooperatives. CoBank in Colorado also received $375 million to provide similar loan guarantees for rural electric cooperative infrastructure.Agriculture Secretary Tom Vilsack announced the Rural Development loans at an event in Missouri where he cited that the state would receive a total of $108 million for projects to build or improve more than 300 miles of power lines and also invest in smart-grid technology."For 80 years, rural electric utilities have provided reliable and affordable electricity to help rural communities increase productivity and build stronger economies," Vilsack said. "These loans will help them continue to do that. The utilities and cooperatives will use some of the money to finance energy efficiency projects, renewable fuel systems and smart grid technologies to increase our energy independence and improve rural electric infrastructure."About $35 million of the funds also will go for renewable energy, $26 million for environmental improvements, and nearly $1.8 million for energy efficiency. 

Optimism in Agriculture

While it seems that the typical ag press report these days focuses heavily on weak markets, Bloomberg reported this week that there is “optimism in agriculture despite shrinking wallet size.” It says that investments by companies and venture capitalists in agricultural technology reached a record of as much as $25 billion globally in 2015 “and that figure will probably grow again this year.”The sources of the new estimates are Boston Consulting Group and AgFunder which connects investors with agricultural companies and proposals online. The investments included are a broad range of products including R&D, purchases, partnerships, equity stakes and technology centers. Early-stage funding from venture capital firms reached $3 billion globally, up from $900 million in 2013 and $400 million in 2010, the groups said.“The total dollars were impressive,” said Decker Walker, Boston Consulting Group’s managing director in the Chicago office and one of the report’s authors. “It is striking that it’s happening at a time when farmer income is declining.” However, the report tends to focus more on larger farms who tend invest more heavily in advanced technology.The company noted that while slumping grain, meat and dairy prices have eroded agriculture incomes generally, more farmers are turning to precision-agriculture methods to help increase efficiency. “Companies including Deere & Co. are joining the race to create new products for the market that Goldman Sachs Group Inc. estimates could be worth $240 billion by 2050,” Walker said. In addition, USDA recently noted that the new technologies are helping to boost profits for many farming operations.Perhaps the most interesting aspect of the report is Wallker’s comment that “There is clearly some optimism despite the shrinking farmer wallet size.”The report covered technologies encompassing everything from granular data analysis that enhances planting decisions to drones that provide field views around the clock. The report is based on a survey of more than 50 executives from seed, fertilizer, meat, grain and farm-equipment companies as well as 15 venture-capital investors.It suggested that the current surge in technology may be coming later in agriculture than in other industries because past challenges have included a lack of connectivity on vast, remote farms. The perception that agriculture being a “sleepy industry” that’s slow to adopt technology is changing, Walker said.USDA earlier reported that about 80% of large U.S. farmers are using GPS devices to steer their tractors, while 70% to 80% use yield mapping to determine the most productive areas of their land. The new, private report estimated that crop protection and seed companies have invested the highest percentage of revenue in “agtech.”In addition, it notes that agribusiness investors are often “cautious” and “defensive,” meaning they are geared to boost core businesses rather than create new ones, according to the report. As a result, almost 60% of the venture capital firms said they expect their investments in start-ups to lead to sales to larger agricultural companies, rather than disrupt the big players, Walker said.Overall, the report suggests that U.S. agriculture continues to be highly focused on increasing efficiency and competitiveness and in expanding its markets—in spite of the widespread anti-trade sentiment that has been one of the stronger themes in this year’s political fights. This optimism and investment trend also runs counter to the popular criticisms of ag technology that have been featured in urban dailies recently.Given the expected growth in global food needs in the coming decades, it is certainly not surprising that the sector would turn increasingly to technology to fill those needs. The fact that it is doing so against both economic and social headwinds makes the recent trends especially important and encouraging, Washington Insider believes. 

USDA Downgrades 2016 All Food, Grocery Store Price Forecasts

U.S. consumers will see a smaller bill at the grocery store in 2016 compared to 2015 and overall food price increases are now seen at 1%, a range of 0.5% to 1.5%, according to the Food Prices update from USDA's Economic Research Service (ERS).Food at home or grocery store prices are now forecast to range between minus 0.75% to up 0.25%, Which ERS said is a "rate of inflation (or possibly deflation) that would again fall below the 20-year historical average of 2.5%. The forecast has been lowered due to recent declines in prices for beef and veal, poultry, and eggs. Lower transportation costs due to deflated oil prices as well as the strength of the US dollar have placed additional downward pressure on food prices in the first half of 2016."The U.S. dollar strength is impacting the competitiveness of U.S. goods on the global market, "leaving more potential exports on the domestic market," ERS noted.So far in 2016, ERS said grocery store prices are down 1.1% compared to this point in 2015. "Retail food prices have remained flat or decreased for seven of the first nine months in 2016," ERS detailed.For 2017, ERS now forecasts food prices to rise between 1% and 2%. "Despite the expectation for declining prices in 2016, beef and veal, poultry, and dairy prices are expected to rise in 2017," ERS said, adding their usual caveats that the forecasts for 2017 could be altered by several factors, including weather, energy prices and the value of the U.S. dollar. 

WHO Cancer Agency Asked Experts to Withhold Glyphosate Documents

An exclusive report by Reuters reveals The World Health Organization's cancer agency advised academic experts not to disclose documents they were asked to release under U.S. freedom of information laws. The WHO’s International Agency for Research on Cancer is facing criticism over how it classifies carcinogens, amid a recent classification regarding glyphosate. A letter and email obtained by Reuters shows officials from IARC cautioned scientists who worked on a review in 2015 of glyphosate against releasing requested material. The review, published last year, concluded glyphosate is "probably carcinogenic," putting IARC at odds with regulators around the world. Critics say they want the documents to find out more about how IARC reached its conclusion. The agency says it was seeking to protect its work from external interference and defending its panels' freedom to debate evidence openly and critically.

EPA Investigating Reports of Improper Dicamba Use

The Environmental Protection Agency is investigating dicamba drift issues reported in southeastern Missouri. Pro Farmer reports the EPA executed search warrants earlier this month looking for signs that the herbicide had been used improperly. The searches were prompted by complaints that the herbicide damaged 41,000 acres of soybeans and other crops, reportedly because improperly applied dicamba drifted into neighboring fields. The herbicide can injure crops that are not resistant to dicamba. Reports of drift issues started surfacing this year in parts of the Midwest and Mid-South regions of the United States. The Missouri Department of Agriculture in August said it was investing more than 90 dicamba drift complaints. The St. Louis Post-Dispatch says insurance companies will not compensate farmers for losses caused by wrongful or “off-label” herbicide applications, leaving civil lawsuits as a potential recourse for growers trying to recover damages. Meanwhile, the EPA is expected to decide whether to approve "over the top" dicamba application on soybean fields later this fall

River Infrastructure a Major Concern for Corn Farmers

The National Corn Growers Association says eroding river infrastructure is a major concern for corn farmers. An NCGA spokesperson says “upgrading the navigational efficiency of these waterways is a priority for corn farmers,” more so as most prospective customers of U.S. corn are now overseas. The comments come as new research by the Mid-America Freight Coalition finds the failure of the nation’s aging river locks and dams along the Mississippi River would cost billions of dollars in lost jobs and reduced economic activity. USDA research shows a disruption at Lock & Dam 25 on the Upper Mississippi River, a key location on the river system, would significantly hamper economic activity. The report concludes a Lock 25 closure could result in a loss of more than 7,000 jobs, $1.3 billion of labor income and about $2.4 billion of economic activity annually.  A total of 36 locks and dams, 28 on the Upper Mississippi River, are maintained at a nine-foot depth navigation channel for barge transportation. 

Judge Considering Merits of Beef Checkoff Lawsuit

A decision on whether or not a lawsuit against the Beef Checkoff can continue will be issued at an “unannounced future date.” A federal judge heard arguments for 55 minutes this week from attorneys representing R-CALF and Agriculture Secretary Tom Vilsack about the Beef Checkoff program, according to Food Safety News. R-CALF alleges the Beef Checkoff is allowing the Montana Beef Council to use checkoff funds without oversight. Specifically, R-CALF says the state council is using checkoff dollars to promote international beef, and Montana producers cannot opt-out of the program. Justice Department attorneys representing the Department of Agriculture say beef producers may request that all their check-off dollars be redirected to the Cattleman’s Beef Board, but there is little record of any Montana producers filing a request. Currently, half of the $1-per-head assessment goes to the Cattlemen’s Beef Board, and for Montana, the other half goes to the Montana Beef Council. Secretary Vilsack believes the challenge should be dismissed for lack of jurisdiction or for failure to state a claim by R-CALF. 

Ag Tech Investments Reach Record Despite Sluggish Ag Economy

Investments in agricultural technology reached a record $25 billion globally last year, despite a softer global agriculture economy. A new report released this week by the Boston Consulting Group and AgFunder expects the to figure grow again this year as well. The two firms say real-time data analytics, sensors and robots are raising the prospect of the "next green revolution" and are spurring start-ups focusing on new agricultural technology. Boston Consulting Group's Decker Walker says the investments in total were “impressive” at a time when farm income is declining. Early-stage funding from venture capital firms reached $3 billion globally, up from $900 million in 2013 and $400 million in 2010, according to the report. Goldman Sachs estimates the market for new agriculture technology products could be worth $240 billion by 2050.

Canada PM Warming up to TPP, CETA Still Possible

Canada’s Prime Minister appears to be warming up to the Trans-Pacific Partnership trade agreement following the stalled negotiations of a trade deal between the European Union and Canada. Justin Trudeau (True-doh) told a youth summit this week it was “difficult to imagine” Canada rejecting the TPP. Specifically, he says: “It’s difficult to imagine a world where Canada would turn its back on three of its top five trading partners,” being the United States, Japan and Mexico. Politico reports that the TPP was finalized before Trudeau took office, and he has yet to take a formal stance on the deal. Meanwhile, talks between Belgium and the European Union are reportedly progressing regarding opposition to the trade deal between the EU and Canada. Belgium’s Wallonia region has blocked the Comprehensive Economic and Trade Agreement, but the EU says it is possible the deal could still be signed this week. An official with the European Commission commented Wednesday that: “When it happens is less important than that it happens.” The EU and Canada had planned to sign the trade agreement at a summit Today (Thursday) in Canada. 

Bayer AG Executive Defends Planned Acquisition of Monsanto Co

(Dow Jones) -- Bayer AG Chief Executive Werner Baumann Wednesday defended the company's planned $57 billion acquisition of U.S. agrochemical group Monsanto Co. amid concerns the deal could face an uphill battle with regulatory authorities over antitrust issues."This step is entirely logical," Mr. Baumann said of the merger with Monsanto. "The two companies are a perfect fit and complement each other ideally."The deal with Monsanto, valued at $66 billion including debt, is the latest in a wave of consolidation in the $100 billion global crop seeds and pesticides market over the past year. Tie-ups between Syngenta AG and China National Chemical Corp. and between Dow Chemical Co. and DuPont Co. have been held up by ongoing antitrust reviews by the European Union.Mr. Baumann said the German pharmaceuticals and chemicals giant would submit its application to EU regulatory authorities in the first quarter of 2017 and to U.S. authorities by the end of this year. He reiterated that he expected the deal to close by the end of 2017.Mr. Baumann's remarks came as the company announced its earnings results for the third quarter of 2016. Bayer posted a 19% rise in net profit and raised its full year earnings guidance, boosted by continued uptake of its recently launched blockbuster drugs.Net profit for the period ended Sept. 30 was EUR1.19 billion ($1.3 billion), compared with EUR999 million for the same period last year. The figure beat analysts' forecasts of a EUR1.1 billion profit, according to a recent poll by The Wall Street Journal.Bayer said it now expects to achieve a high-single-digit percentage increase in core earnings a share for 2016, up from its previous forecast of a mid-to-high-single-digit percentage improvement. The company also reiterated its sales outlook for the full year, saying it expects sales of between EUR46 billion and EUR47 billion.Analysts at Commerzbank called Bayer's profitability "excellent," while saying the company had delivered an overall "positive" set of third quarter figures.Quarterly sales rose 2.3% to EUR11.26 billion, driven by sales of blockbuster drugs like blood thinner Xarelto and eye medicine Eylea.The company's closely watched measure of earnings before interest, taxes, depreciation and amortization before special items climbed by 6%, to EUR2.68 billion, driven by strong earnings growth at its pharmaceuticals unit. Ebitda before special items for pharmaceuticals jumped 13.4% to EUR1.42 billion.The group's recently separated specialty plastics business, Covestro AG, also posted strong earnings growth, with Ebitda before special items rising 19.5% to EUR564 million. Bayer spun off Covestro last year through a public offering but still maintains a roughly 64% stake in the company.However, growth at Bayer's increasingly core crop science division was held back by persistent weaknesses in the global agricultural market. Ebitda before special items at the unit rose just 0.6% to EUR318 million.The crop division has taken center stage since the company agreed last month to acquire Monsanto. The deal would significantly reshape Bayer's portfolio. Crop science sales would comprise roughly half of overall revenue, compared with 30% in 2015, while the health care business would constitute the other half.Analysts have widely said the two companies are complementary. Bayer has a strong footprint in crop protection chemicals, while Monsanto is a leader in biotechnology and seeds.The merged company would be the largest supplier by sales of both seeds and pesticides. 

Senate Ag Appropriations Subcommittee Seats Up For Grabs

(DTN) -- With the four Republicans and two Democrats on the Senate Agriculture Committee who are running for re-election likely to win another term, attention must be turned to who will serve on that committee and the Senate Agriculture Appropriations Subcommittee in the next Congress.This map from Cook Political Report shows the various rankings of Senate races across the country and the likelihood they could change parties. (Graphic courtesy of Cook Political Report)That's especially true considering poll trackers such as Cook Political Report peg Democrats as picking up five to seven seats in the Nov. 8 election and thus taking back the Senate majority. The current makeup of the Senate is 54 Republicans, 44 Democrats and two independents who largely lean Democratic. There are 34 Senate seats up for election, of which 24 are held by the GOP.If the Democrats take control of the Senate, Senate Agriculture Committee ranking member Debbie Stabenow, D-Mich., would become chairwoman, a position she held when the 2014 farm bill was debated and passed. But the real question would be which additional Democrats might be added to the committee and which Republicans might have to drop off the committee in order to give the Democrats a majority.The Cook Political Report ranks Republican Sens. John Boozman of Arkansas, John Hoeven of North Dakota and John Thune of South Dakota and Democrat Sen. Patrick Leahy of Vermont as "solid" for re-election. Cook also ranks Republican Charles Grassley of Iowa and Democrat Michael Bennett of Colorado as "likely" to be re-elected.The Senate Agriculture Committee website lists Grassley and Thune at the bottom of the seniority list. But that's because Grassley chairs the Senate Judiciary Committee and Thune chairs the Commerce, Science and Transportation Committee; Agriculture is a secondary committee for them. Just above them on the Republican list are the more recently elected Ben Sasse of Nebraska, Thom Tillis of North Carolina and Joni Ernst of Iowa.There could also be changes on the Senate Agriculture Appropriations Subcommittee where Hoeven and Leahy also serve. Cook ranks Republican Sen. Jerry Moran of Kansas, who chairs the subcommittee, as "solid" for re-election.But Cook has put Republican Sen. Roy Blunt of Missouri, another subcommittee member, in a "toss-up position." The Washington Post reported on Sunday that Jason Kander, the Democrat running against Blunt, as making headway in his race because Blunt's wife and children are lobbyists. The Post said that Republican presidential candidate Donald Trump's campaign against the Washington establishment has resonated with Missouri voters.If the Democrats win control of the Senate, Sen. Jeff Merkley of Oregon, the current ranking member on the Senate Agriculture Appropriations Subcommittee, is in line to become chairman. The current ratio is seven Republicans to six Democrats, and that presumably would switch. The subcommittee roster lists Sen. Steve Daines of Montana at the bottom of the Republicans.There are other races also of interest to agriculture, in some cases because they would influence which party controls the Senate and in others because of ties to agriculture.In addition to the Blunt-Kander race, Cook ranks these Senate races held by Republicans as "toss-ups":-- Florida: Republican Sen. Marco Rubio is challenged by Democratic Rep. Patrick Murphy.-- Indiana: In the race to replace retiring Republican Sen. Dan Coats, former Democratic Sen. Evan Bayh is running against Republican Rep. Todd Young.-- New Hampshire: Republican Sen. Kelly Ayotte is challenged by Democratic Gov. Maggie Hassan.-- North Carolina: Republican Sen. Richard Burr is challenged by Deborah Ross, a former Democratic state representative.-- Pennsylvania: Republican Sen. Pat Toomey is challenged by Katie McGinty, a former chief of staff to Democratic Gov. Tom Wolf.Cook also ranks the Nevada race to succeed Senate Minority Leader Harry Reid, D-Nev., as a "toss-up."The candidates in the Nevada race are Republican Rep. Joe Heck and Democrat Catherine Cortez Masto, a former state attorney general.In Arizona, Republican Sen. John McCain, who has been a vocal opponent of both farm bills and ethanol, is running against Democratic Rep. Ann Kirkpatrick. Cook ranks the race as "leaning Republican."In Ohio, Republican Sen. Rob Portman, a former U.S. trade representative who has been a reliable supporter of trade agreements until this year, is running against former Democratic Gov. Ted Strickland. Cook also ranks that race as "leaning Republican."In the dairy state of Wisconsin, Republican Sen. Ron Johnson is running against former Democratic Sen. Russ Feingold. Cook ranks the race as "leaning Democratic."In the important agricultural state of Illinois, Republican Sen. Mark Kirk is fighting a challenge from Democratic Rep. Tammy Duckworth. Cook rates the Illinois race as "leaning Democratic."Charlie Cook wrote in a recent National Journal column, "The numbers tend to favor Democrats, but keep in mind that the swing voters who cast ballots for [Democratic presidential candidate Hillary] Clinton may not fully trust her and might buy the GOP argument that she shouldn't have 'a blank check.' This could lead to ticket splitting that could shift the advantage, ever so slightly, to Republicans." 

Ag Mega-Mergers Delayed

Two agriculture industry mergers expected to be completed by the end of the year now look delayed into the early part of 2017. Dow Chemical and DuPont’s merger may be delayed until February, as European antitrust officials take more time to consider potential competition issues in pesticides and crop seeds, according to Bloomberg. The European Commission this month delayed its decision deadline until February 6th as it sought additional information about the transaction. Meanwhile, the Syngenta-ChemChina deal will likely take more time for regulatory approval after the two failed to submit paperwork by a deadline Friday. For that deal, The Wall Street Journal says European regulators have set an initial deadline for the merger probe for October 28th to decide whether to clear the deal unconditionally, or open an in-depth investigation, which would last several more months and likely lead the EU to demand concessions. One analyst expects the deal to be completed within the second half of next year.

Export Exchange Wrapping up in Detroit

The 2016 Export Exchange hosted by the U.S. Grains Council and the Renewable Fuels Association comes to a close Wednesday. More than 200 international buyers and end-users of coarse grains and co-products from more than 35 countries were attending the event in Detroit, Michigan. The Export Exchange, occurring once every two years, allows attendees to meet and build relationships with domestic suppliers of corn, distiller's dried grains with solubles and other commodities. Grains Council CEO Tom Sleight says the event is “critical for our industry” at a time when farmers are looking at a record corn harvest and “the clear need for international trade.” As part of the conference, RFA President Bob Dineen presented an overview of the upcoming U.S. presidential election and its potential impact on trade. Dineen says despite who wins the election next month, “trade is too important to our consumers, our agricultural system and our entire economy to be relegated to the kind of hyperbolic, overblown and ultimately counterproductive political rhetoric.” 

Federal Reserve Member Looking to December for Next Rate Boost

Federal Reserve Bank of San Francisco President John Williams says the best time for the U.S. central bank to raise rates again likely will be at its policy gathering in December. Williams still expects one rate increase this year, and says it could happen at either of the two remaining rate-setting Federal Open Market Committee meetings in 2016. However, he says it could be better to wait a bit longer to boost what is now a 0.25 percent to 0.50 percent overnight target rate range, according to Pro Farmer’s First Thing Today. That is because Fed Chairwoman Janet Yellen will have a press conference at the December meeting, but not at the gathering scheduled for November. Williams says: “We can always take policy actions at any meeting, but I think there are some advantages, in my own mind, around a press conference." 

Estate Tax Proposed Changes Would Lose Court Battles

A Kansas Farm Bureau representative and agriculture law professor says proposed changes to the estate tax would likely be struck down if finalized and litigation followed. Roger McEowen (Mc-Allen) predicts that if the Internal Revenue Service finalized a proposal that would crack down on a tactic for family operated companies to reduce asset values to skirt the estate tax, plaintiffs suing the agency are likely to prevail. Politico reports that the IRS proposal, in general, would end most of the so-called valuation discounts, which can be applied to intra-family transfers of interest when there are restrictions attached, such as on liquidation and voting rights. The American Farm Bureau Federation and its state organizations, including Kansas, plan to request the IRS scrap the entire proposal. McEowen says the issue has been a source of litigation against the IRS, and courts have routinely held that the valuation discount is reasonable. 

US Set To Capture Higher Share Of Global Wheat Market

The U.S. will capture a higher share of the global wheat market this season as poor weather that’s hurt French and Canadian crops helps the second-largest exporter step up shipments from a 44-year low last season. U.S. wheat exports are forecast to rebound 26 percent in the year that began June 1 to 26.5 million metric tons, according to U.S. Department of Agriculture data. The nation’s share of global wheat exports is also estimated to rise to 15 percent, the highest in three years, from 12 percent last season. Growing U.S. stockpiles have helped push down prices and lure buyers. U.S. wheat futures in Chicago hit a decade low at the end of August and are now trading at about $4.02 a bushel. Apart from increasing exports in its traditional markets in Latin America and Asia, the U.S. is expected to expand its footprint in North Africa, according to a USDA report dated Oct. 12. European Union wheat has lost market share in that region because of low output and quality problems. The Philippines, Mexico, Japan and Brazil have been among the biggest buyers of U.S. wheat this year. Other countries that have also boosted purchases include Algeria and Indonesia. Top Exporters “The U.S. is in the strongest position to export quality wheat out of all the top exporters including Canada, EU and Australia, which have been hit by quality concerns,” said Benjamin Bodart, a director at farm adviser CRM Agri-Commodities in Newmarket, England. France, the EU’s biggest wheat producer, saw its soft-wheat output plummet 32 percent to 28 million tons this season after excessive rains cut yields to the lowest in three decades. Wheat that can be exported to the EU and countries outside the bloc is estimated at 5 million tons this season, down 60 percent from last year, according to Soufflet unit AIT Ingredients. The French Ministry of Agriculture warned of quality being too poor to meet requirements of large buyers including Algeria and Morocco. Its loss in the global market has been the U.S.’s gain, with Algeria set to buy 193,740 tons from America since the marketing year began, according to the USDA. This is the largest commitment for this time of year in nine years, USDA data shows. “It’s simply a function of the poorer crop in France, ” said Mike O’Dea, a risk management consultant at INTL FCStone Inc. in Kansas City, Missouri. “The French would typically take those sales. Right now, we’re filling the void from the lack of supply from the EU.” Red Wheat Sales of hard red winter wheat, the bread variety grown in the U.S. plains, have been particularly strong, according to Vince Peterson, vice president of overseas operations at U.S. Wheat Associates. Spring wheat, which has high protein, also has seen rising demand, partly as Canada’s crop quality dimmed from rain and snow, he said. The relative quality advantage that is giving the U.S. a leg up comes at a time when the nation’s wheat stocks have swelled. U.S. wheat inventories at the end of the marketing year on May 31 are forecast to rise to the highest in 29 years, according to the USDA. The country has had a far higher market share in past years, reaching as high as 29 percent less than a decade ago. The U.S. grip on the global market has steadily declined since peaking at more than half of shipments in the 1970s. Russia, the world’s largest wheat exporter, has been hurt lately by rising oil prices that have strengthened the ruble, pushing up prices for its sales abroad. Gains in the ruble from rising oil prices may keep benefiting the U.S., according to Tracey Allen, an agricultural commodities strategist at JPMorgan Chase Bank NA in London. The lender sees oil prices reaching $60 per barrel by the end of 2017 compared with about $50 currently. “We could see the pace of U.S. exports sustaining over the next six to eight months on the back of its huge stock availability, and an expected moderation in the dollar,” Allen said. “Higher oil prices and corresponding strength in oil-producer currencies may weigh on the relative export competitiveness of countries like Russia.” 

Klamath County cattle owners receive compensation for wolf kills

KLAMATH FALLS — Compensation payments were made for four cattle killed and one injured by wolves during Monday's meeting of the Klamath County Wolf Depredation Committee.

DeTar Livestock of Dixon, California, which grazes cattle on the Nicholson Ranch near Fort Klamath, will receive roughly $3,660 for four cattle killed earlier this month by wolves. The payments — $1,212, $792, $764 and $893 — are based on recent cattle sales. DeTar runs cattle on Wood River Valley land owned by Bill Nicholson and managed by Butch Wampler. The wolf kills were confirmed by wildlife biologists.

The committee also approved a $407 payment to Dave Wirth, who owns a ranch in the Pine Grove area, for a February wolf attack that injured a heifer.

A request for payments will be submitted to the Oregon Department of Agriculture in January, with payments expected in February. The compensation does not include veterinary bills or other costs. During discussion, Nicholson emphasized the payments do not consider weight losses caused by stress among cattle when they are threatened by wolves. Jason Chapman, a Poe Valley rancher and wolf committee member, echoed Nicholson's concerns but said there is no way to quantify the impacts of stress.

The DeTar-Nicholson compensation request will be kept open in case of a future incident. Nicholson said the remaining cattle are scheduled to be shipped out Wednesday, although other Wood River Valley ranchers don't plan to move cattle to winter pastures, mostly in Northern California, until late November.

The payments were approved after the committee heard updates on wolves in the Klamath Basin and discussions on a range of topics.

Committee member Tom Mallams, a Klamath County commissioner, complimented efforts by Klamath Falls-based offices of the Oregon Department of Fish and Wildlife and the U.S. Fish and Wildlife Service to detract wolves, but he decried legal threats by pro-wolf groups that prompt changes in enforcement regulations. Wolves in Western Oregon are on the federal endangered species list and therefore protected, while wolves east of Highways 395, 78 and 95 fall under Oregon's less restrictive wolf management plan.

Laurie Sada, USFWS Klamath Falls office supervisor, said the agency has proposed legislation to delist wolves for several years but said no action has been taken by Congress. She said the agency "feels wolves have recovered and should be delisted" and disagrees with some pro-wolf supporters.

"There's a lot of folks who say any grazing should stop if wolves are present. No," she insisted.

Sada and John Muir, assistant wildlife biologist for the state's Klamath district office, disagreed with Mallams, who cited wolf-caused deaths in Canada and Alaska in 2005 and 2010 and said wolves pose a threat to humans. No deaths have been reported in the lower 48 states.

"This is not just a livestock issue. This is a human issue," Mallams said, questioning why alerts are issued for things like possible toxic algae in lakes but not about wolves.

"I'm not interested in playing up the Little Red Riding Hood scenario," Muir responded.

Muir also said wolves are opportunists, noting, "There's no evidence wolves get a taste for beef ... If the opportunity is there, they'll teach them (young wolves) how to survive."

Mark Coats, a member of Working Circle, a Siskiyou County group formed to create strategies to prevent wolf depredations, discussed efforts to discourage wolf-livestock interactions. He said the group wants to expand to Southern Oregon and make control expenses "more tolerable." He said the presence of humans, called hazing, has proven the most effective method of discouraging wolf attacks.

Coats said no California wolves have radio collars used for tracking but said their movements have been detected by trail cameras and by experts studying tracks and scat. By forecasting wolf movements, ranchers can take steps to reduce potential attacks. He said information on California wolves is lacking because the state has no wolf depredation compensation program, which he believes discourages ranchers from reporting livestock kills.

Muir said efforts to trap and collar wolves, especially members of the Rogue Pack believed responsible for the four recent Wood River Valley kills, have been unsuccessful. Sada said there is no chance all wolves will ever be collared, cautioning, "The reality is you're not going to know where these animals are."

The committee will meet in January to discuss its 2017 budget request and consider methods to discourage wolf attacks, including possible participation in the Working Circle. Last year Klamath County requested $15,000 for preventive measures and received about $8,000. The county has received $20,000 through a USFWS grant to be used over a four-year period for prevention efforts and has $5,000 in state funds that must be used in the next three months for deterrent procedures, such as range riders, special fencing, guard dogs, burying or disposing of livestock carcasses, firing cracker shells and using strobe lights.

Four Montana Farmers Union junior youth receive Scholarship Award

Four Montana Farmers Union junior youth received the Mildred Stoltz Scholarship Award at the organization’s 101 annual meeting and convention at the Youth Luncheon in Great Falls on Saturday, October 22, 2016. The 2016 Mildred Stoltz award recipients are: Will Anderson of Great Falls, son of James Anderson & Julie Kuykendall; Jaxson Parkinson of Power, son of Sara Linder-Parkinson and Corey Parkinson; Nicole Hartford-Hilbig of Great Falls, daughter of Steve Hilbig & Destri Hartford- Hilbig, and Wyatt Wientjes of Molt, son of John and Rebecca Wientjes. The recipients received a plaque, $50 and a free camp registration for the next camp season. Mildred Stoltz was MFU’s education director for more than 18 years.  In her honor, the Farmers Union Oil Company of Great Falls – now Mountain View Co-op – set up a fund to recognize youth for their leadership skills and cooperative spirit.  Each year youth are selected from Arrowpeak Junior Camp, which is located in the Highwood Mountains. 

Total red meat supplies were a record high for the month of September

Total red meat supplies were a record high for the month of September, since the data was first recorded in 1946.In the short term, the glut of red meat may keep prices in check, according to the Daily Livestock Report. According to USDA, total beef, pork and poultry supplies in refrigerated warehouses at the end of September were estimated at 2.4 billion pounds, 1.6 percent larger than the previous month, and 11 percent higher than the five-year average.Total red meat supplies in freezers were up 7 percent from the previous month and up slightly from last year, according to USDA’s Cold Storage report. Total pounds of beef in freezers were up 9 percent from the previous month and up 4 percent from last year.Total pounds of beef were a record high for the month of September, since the data was first recorded in 1932.“The increase in inventories comes at a time when U.S. beef imports have declined sharply, implying that significantly more domestic boneless beef is ending up in cold storage,” the DLR analysts wrote. “This should dampen demand for some beef products in the short term. ... We suspect that part of the reason for the increase is due to the oversupply of fat beef trim.”Meanwhile, frozen pork supplies were up 5 percent from the previous month but down 2 percent from last year. Stocks of pork bellies were down 22 percent from last month but up 130 percent from last year.“Overall demand for pork remains in good shape and packers have been quite successful in keeping the flow of product moving through the various channels,” the DLR analysts also noted. “However, not all is good in the pork complex. Slaughter in October is expected to be even bigger and exports are showing signs of slowing down. We expect pork inventories to increase further in October. For now, however, we think markets will view the curret report as generally neutral for prices in the short term."Total frozen poultry supplies on Sept. 30 were down 2 percent from the previous month but up 2 percent from a year ago, according to USDA. Total stocks of chicken were down 1 percent from the previous month and down 4 percent from last year. Total pounds of turkey in freezers were down 4 percent from last month but up 14 percent from Sept. 30, 2015. 

DuPont Planning Sale of Herbicide Business

DuPont is planning to sell a company-owned herbicide business to reduce potential antitrust concerns to a $59 billion merger with U.S. competitor Dow Chemical Co. Bloomberg reports the sale is expected to generate several hundred million dollars and Delaware-based DuPont is also considering the disposal of insecticide and seed units that might be an obstacle to the deal moving forward. A host of competitors, from BASF to FMC and private equity firms are monitoring opportunities to pick up assets as the biggest-ever wave of consolidation in the agrochemical and seed business spurs antitrust reviews and forced sales. For its part, Dow is selling a unit making copolymers used in food packaging. Dow and DuPont are pushing to complete the merger by the end of this year. 

Rural Mainstreet Index Reaches Lowest Level Since Recession

The October Rural Mainstreet Index by Creighton University fell to its lowest level since April of 2009. The monthly survey fell below the neutral growth mark for the 14th straight month as bankers report one in five grain farmers are experiencing negative cash flows. The index, which ranges between 0 and 100, fell to 31.8 from September’s 37.3. Survey organizer Ernie Goss says lower grain prices and a 19 percent drop in livestock prices over the last 12 months have contributed to the drop. Also tracked by the survey, the farmland and ranchland-price index for October fell to 25.0 from September’s 40.3. This is the 35th straight month the index has landed below growth neutral of 50.0. Finally, the October farm equipment-sales index sank to 13.1 from September’s 14.3. The overall Rural Mainstreet Index represents a snapshot of the rural economy of 10 agriculture-dependent states in the Midwest.

Federal Court to Decide Fate of R-CALF Suit Against Beef Checkoff

A federal court today (Tuesday) will consider a lawsuit against the Beef Checkoff. Food Safety News reports anything from a dismissal to a temporary restraining order for the plaintiffs could occur. The challenge to the Beef Checkoff was filed this spring in a Billings, Montana federal court. The Ranchers-Cattlemen Action Legal Fund of the Stockgrowers of America, or R-CALF, filed the lawsuit against the U.S. Department of Agriculture, which oversees checkoff programs. R-CALF claims checkoff money is being used to promote international and domestic beef, and that there is no way for ranchers to opt out of the fee. R-CALF was a supporter of U.S. Country of Origin Labeling and CEO Bill Bullard says: “there is now a worldwide effort to render the origins of U.S. cattle irrelevant on a global scale.” Bullard says Montana ranchers, and others, deserve the option to opt-out of the worldwide effort. USDA says there is an opt-out option for producers, and is seeking dismissal. Government attorneys argue R-CALF lacks standing to continue the case. 

USDA Cold Stocks Report Bearish To Dairy Industry

On a whole, Friday’s USDA Cold Stocks Report brought bearish news to the dairy industry. However, butter stocks declined significantly which analysts say was necessary in the current market. Butter stocks fell 49.6 million lbs. in September to arrive at 269.2 million pounds. In addition, USDA reduced last month’s stocks number by 3.4 million pounds. However, according to analysts at INTL FCStone stocks are still 43.5% higher than they were last year and about 85.2 million lbs. above the 5-year average.  Cheese stocks were bearish. American cheese stocks were 6.5% higher than a year ago. INTL FCSTone says it’s normal to reduce American cheese stocks in September, not add them. Total cheese inventories were 1,2038.01 million pounds, up 0.3% over last month and a total of 7.4% higher than one year ago. Hopefully holiday demand will contract stocks going into November. 

Union Pacific the Latest Railroader to Miss

(Dow Jones) -- Union Pacific (UNP) logs its own 3Q profit miss as earnings slide more than anticipated amid the continued industry softness in railroad traffic. UNP's carloads fell 6% as an 11% rise for agriculture was more than offset by declines elsewhere--including 19% for coal and 13% for industrial products. With shares up 24% this year, expect profit-taking today. UNP is inactive premarket.**Big Fees Loom for Monsanto Advisers(Dow Jones) -- Banks stand to get quite the payday for their roles on Bayer's (BAYN.XE) proposed $57B deal to buy Monsanto (MON). A merger proxy shows Morgan Stanley (MS) would make $120M if the deal closes; it advised MON. Meanwhile, upstart investment bank Ducera received a $10M fairness-opinion fee and stands to receive an additional $35M if the buyout is completed. It also worked with MON. 

CFTC Plans To Scale Back Proposal To Prevent Trading Glitches

(Dow Jones) -- The Commodity Futures Trading Commission plans to scale back a controversial proposal to prevent automated trading glitches from roiling futures and derivatives markets, granting some relief to proprietary traders that could have had to devise new risk controls.Under an approach described Friday by CFTC Chairman Timothy Massad, traders could use their own risk controls or rely on those of their futures brokers. The CFTC's original plan, issued last year, would have required brokers and traders to devise separate systems to avoid trading mishaps caused by haywire trading algorithms or programs."We got a lot of comments that that was excessive and could simply lead to conflict," Mr. Massad told reporters after a speech in New York.The change will be included in a revised proposal that the CFTC will soon issue overhauling aspects of its original plan. Traders have also criticized a provision of the CFTC plan that would force them to provide the computer code that drives trading strategies to their regulator upon request. Critics of that measure say the CFTC should need to acquire a subpoena to get the source code.Mr. Massad said earlier this week that the CFTC would amend its proposal to seek source code but wouldn't retreat completely. He said the agency was studying ways to ensure the formulas aren't disclosed publicly and that access is limited even among regulatory officials.Under the new proposal, fewer algorithmic traders could have to register and submit to the agency's rules. Mr. Massad said the new plan would include "a volume-based" test that captures "the most active firms.""We received many comments that our registration requirement was too broad and burdensome," he said in the speech to the Managed Funds Association, a group that represents hedge funds. 

NOAA Predicts La Nina Will Be Weak, If At All

(DTN) -- The winter 2016-17 forecast issued by the NOAA Climate Prediction Center (CPC) this week took note of the projected influence of La Nina in the Pacific Ocean, stating that if we see a La Nina, it will be a weak one.Eastern Pacific Ocean temperatures are above normal and not showing a cooling tendency toward La Nina. (NOAA graphic)La Nina is the term used to identify the occurrence of widespread cooler-than-normal temperatures in the equatorial Pacific, along with jet stream patterns which feature a magnified northern jet stream and limited subtropical jet energy over the continental U.S.The CPC forecast cites La Nina's influence in calling for above-normal precipitation in the northern tier of the U.S., as well as generally dry conditions in the Southern Plains through the Gulf Coast, along with most of the Far West. But, the Pacific conditions have not been clear-cut. The CPC issued a La Nina Watch back in May, but removed it from ocean-related commentary in September, only to reinstate the La Nina Watch earlier this month."If La Nina does develop, it looks weak," said CPC Deputy Director Mike Halpert in a conference call. "In some respects, we have actually gone against the model depictions based on La Nina."The biggest change in the CPC forecast is in temperature outlooks. The western and southern two-thirds of the continental U.S. have above-normal temperatures predicted, with other areas showing "equal chances" of above normal, normal, or below-normal temperatures. But, especially in the northern states, that's a major difference from La Nina form. "La Nina would favor colder than normal in the northern tier," Halpert said.Regarding the back-and-forth of issuing or removing a La Nina Watch, Halpert said the weak cooling tendency of the Pacific is responsible. "We had the watch in effect, and then by September the Pacific had relaxed back to normal. The dynamical (forecast) models had everything going flat," he said. "So, the watch was dropped. Then, the ocean changed and the models responded. This highlights the difficulty of predicting a weak event."There is some question as to whether even a weak La Nina may develop. Eastern Pacific temperatures logged by DTN Senior Ag Meteorologist Mike Palmerino have actually been above normal for some time. "My September temperature reading was plus-0.3 (Celsius), and it's hung there through the first half of October," Palmerino said. "I don't think that you can ignore that warmth." Palmerino's region of emphasis is in the eastern equatorial Pacific; the CPC closely tracks the central Pacific equator region for its analysis of either El Nino or La Nina conditions.The impact of a possibly weak or short-term La Nina is especially noteworthy for the recently dry Southern Plains. Forecast models are hinting at higher chances for precipitation in the Southern Plains during the early-November time frame. "That would actually be more of an El Nino-ish happening," Palmerino said. 

Informa Expects More Soybeans In 2017

Informa Economics is predicting that soybeans will take away a significant number of acres from corn and wheat during the 2017 planting season. They project the number of acres planted to corn will drop just over 3.5 million acres from this year’s levels to 90.9 million acres in 2017, a 3.7 percent drop. Pro Farmer’s First Thing Today says early Informa projections for the 2017 corn crop are 14.2 billion bushels, with an average yield of 170 bushels per acre. Informa expects soybean acreage to climb 4.7 million acres from 2016 levels to a record 88.4 million acres, which is a 5.7 percent rise. Informa’s early predictions for the soybean crop are 4.1 billion bushels based on a yield of 47.2 bushels per acre. Informa is also predicting the number of wheat seedings will drop to its lowest level since 1970, right at 48.9 million acres. The company estimates wheat farmers will harvest 35.4 million acres in 2017. 

An Early Farm Bill Means More Money for Ag

House Ag Committee Ranking Member Colin Peterson of Minnesota feels there may be some pressure on Congress to do something in the upcoming lame-duck session about the sagging farm economy. He’s afraid that many farmers won’t be able to obtain financing for the next growing season because of falling revenue thanks to low commodity prices. Peterson said lawmakers would have more money to work with for farm programs if they did the work early. Another reason for getting the work done early is the dairy farming dilemma. A global oversupply of milk is keeping prices lower. The margin insurance program created in the last Farm Bill has low participation and Peterson said it needs improvement. It won’t be easy no matter when Congress acts. Peterson said urban lawmakers have no idea how much money it takes to plant a crop. Even if the situation gets worse, Peterson said he’s not sure if Congress will act even then.  

USDA Reports September Milk Production Up 2.1%

The United States Department of Agriculture reported this afternoon that September milk production shot up 2.1%. U.S. cow numbers dipped 3,000 head from August, but are still up 21,000 head compared to a year ago. In August, cow numbers were up 26,000 head versus the previous year.California again saw milk production decline for the 22nd consecutive month. Production was off just 0.1%. Cow numbers in the Golden State are down 11,000 head versus a year ago but down just 1,000 cows from August.Wisconsin, the #2 dairy state, was up 3.3% in milk though cow numbers dipped 2,000 head from a year ago. Milk per cow in Wisconsin shot up 65 lb. in October versus the previous year.The highest gain in milk production came from Kansas, with output up 6.3%. Cow numbers there were up 3,000 head, and milk per cow was up 75 lb./cow.Michigan grew milk production 5.8%, with cow numbers up 12,000 head. Texas was up 5.3%, with cow numbers up 26,000 head. And South Dakota was up 5.1%, with cow numbers there up 7,000. 

USDA Streamlines Loans for Small and Urban Farmers

The Department of Agriculture Thursday announce a streamlined version of USDA guaranteed loans, which are tailored for smaller scale farms and urban producers. The program, called EZ Guarantee Loans, uses a simplified application process. The program is for beginning, small, underserved and family farmers and ranchers, according to USDA. Through the program, they can apply for loans of up to $100,000 from USDA-approved lenders to purchase farmland or finance agricultural operations. USDA Secretary Tom Vilsack said the loans would help farmers obtain needed capital to start or expand their operation. USDA also unveiled a new category of lenders that will join traditional lenders, such as banks and credit unions, in offering USDA EZ Guarantee Loans. Microlenders, which include Community Development Financial Institutions and Rural Rehabilitation Corporations, will be able to offer their customers up to $50,000 of EZ Guaranteed Loans, helping to reach urban areas and underserved producers

World Wine Output Slipping to 20 Year Low

Global wine volumes are expected to decline this year as adverse weather damaged grapes during the growing season. World wine output could fall by 5.3 percent because of excess rain that spoiled grape harvests in South America and adverse weather in French vineyards, resulting in one of the smallest vintages of the past 20 years. Bloomberg reports Wine volume may fall to 259.5 million hectoliters from 273.9 million last year, according to estimates from the International Organization of Vine and Wine, a Paris-based group. Expected output is equivalent to about 35 billion bottles. Wine production in Chile may fall 21 percent, while Argentina is positioned to slump 35 percent. Italy is expected to remain the world’s biggest wine producer, with output slipping just two percent. France is expected to keep second place, even as production slumps 12 percent. French grape growers struggled with a combination of spring frost, hailstorms, drought and fruit rot that is expected to lead to the country’s smallest wine volume in four years.

Industry Calls for Clearing up of Organic Marketing

The organic industry wants more certification for organic products. The Organic Trade Association told public officials during a Thursday roundtable consumers need to trust organic marketing of products beyond food. That includes cosmetics, household cleaners and other non-food products claiming to be organic. The Organic Trade Association presented its case during the roundtable to the Federal Trade Commission and the U.S. Department of Agriculture. OTA says the roundtable was organized to determine if the FTC needs to issue further guidance to makers of non-food products that use the organic claim or term, but do not use the USDA Organic seal or make any reference to organic certification. A survey by OTA found consumers who are buying organic feel that both organic food products and non-food products claiming to be organic should be regulated in the same manner. The National Organic Program regulates strict organic standards for agricultural products. However, the program’s enforcement authority does not extend to certain types of non-food or non-agricultural products

RFS Sent to OMB for Review

The final 2017 Renewable Fuel Standard is now under review by the White House Office of Management and Budget. The White House review is expected to be completed within the next 90 days to set renewable volume obligations in the RFS. DTN reports the OMB received the final rule from the Environmental Protection Agency on Wednesday and that puts the EPA on track to finalize volumes by the statutory November 30th deadline. Over the last few years, EPA has struggled to meet the deadline. EPA proposed a 2017 total RFS volume of 18.8 billion gallons, including 14.8 billion gallons of corn-based ethanol and two billion gallons of biodiesel. DTN says the final rule could be released within the next 30 days, depending on how long the OMB analysis takes.

It’s the Great Pumpkin, Charlie Brown Celebrates 50

Some have fond memories watching “It’s the Great Pumpkin, Charlie Brown.” The television special is celebrating its 50th anniversary since the Charles Schultz cartoon hit the airwaves.To honor this milestone, farmers across the country have featured “Peanuts” themed corn mazes this season.The MAiZe, Inc. specializes in corn maze designs, mapping out planting and cutting the corn to 90 farms this season honoring the classic cartoon.“It’s the Great Pumpkin, Charlie Brown” will air on Friday Oct. 28 on ABC stations.

Corn Hybrid Failing To Live Up To Promises

A type of corn marketed by Dow Chemical Co. and DuPont Co. is failing to live up to promises that it prevents a damaging worm from feeding on the crop, according to a group of insect experts.Corn containing the Herculex trait isn’t controlling the western bean cutworm, six entomologists from Michigan, Indiana, Ohio, New York and Pennsylvania wrote in an "open letter to the seed industry" posted last week on the website of Purdue University. The scientists urged seed companies to stop labeling Herculex for control of the pest so farmers won’t be lulled into a false sense of security."People are frustrated and angry and, more importantly, yield was lost," they wrote in Purdue’s Pest & Crop Newsletter. "Before growers make seed choices for 2017, we again urge the seed industry to acknowledge the reality of what is happening in the field."Spokesmen for Dow and DuPont didn’t immediately respond to requests for comment Wednesday.Resistant PestsOther genetically modified crops have lost some effectiveness after years of use. The root-chomping western corn rootworm has been showing signs of resistance to Monsanto Co.’s YieldGard corn for years. It’s one of five major crop pests known to have overcome insecticides produced by engineered corn and cotton. These crops produce insecticidal proteins derived from Bacillus thuringiensis, or Bt, a soil bacterium, that can replace chemical insecticides. The problematic Bt protein in Herculex is called Cry1F."Cry1F has failed in our states," the entomologists wrote. "For growers in our states, the costs of scouting and spraying Cry1F corn negates a major reason they purchased and planted a hybrid with the trait in the first place."The scientists investigated the efficacy of the trait amid “dozens of phone calls and e-mails,” they said.Western bean cutworms feed on corn kernels. Untreated, they can lead to the growth of fungus and elevated levels of hazardous mycotoxins. Herculex is marketed for protection against eight other insects.Also failing are Monsanto’s Roundup Ready crops, engineered to tolerate sprays of Roundup weedkiller. To combat an increasing number of weeds no longer killed by Roundup, the company has developed crops that also tolerate dicamba herbicide, while Dow has created competing technology based on the weedkiller 2,4-D.

Latest US Meat Production Reports

Commercial red meat production for the United States totaled 4.32 billion pounds in September, up 4 percent from the 4.14 billion pounds produced in September 2015. Beef production in September, at 2.18 billion pounds, was 4 percent above the previous year. Cattle slaughter totaled 2.62 million head, up 6 percent from September 2015. The average live weight was down 12 pounds from the previous year, at 1,370 pounds.Veal production totaled 6.2 million pounds, 10 percent below September a year ago. Calf slaughter totaled 42,500 head, up 14 percent from September 2015. The average live weight was down 61 pounds from last year, at 251 pounds.Pork production totaled 2.13 billion pounds, up 4 percent from the previous year. Hog slaughter totaled 10.2 million head, up 5 percent from September 2015. The average live weight was unchanged from the previous year, at 280 pounds.Lamb and mutton production, at 12.0 million pounds, was down 2 percent from September 2015. Sheep slaughter totaled 193,300 head, slightly above last year. The average live weight was 125 pounds, down 3 pounds from September a year ago. January to September 2016 commercial red meat production was 37.0 billion pounds, up 3 percent from 2015. Accumulated beef production was up 6 percent from last year, veal was down 8 percent, pork was up 1 percent from last year, and lamb and mutton production was down 1 percent.

Global Wheat Trade Expected to Set New Record

By Stephanie Bryant-Erdmann, USW Market Analyst

A fact that may be undervalued in a market fixed on supply news is that trade volume in wheat, the world’s most traded grain, is on a steady increase. In its latest round of estimates, USDA now expects 2016/17 world wheat trade will reach a record large 175 million metric tons (MMT) (6.42 billion bushels). Along with rising global demand and a potential shortfall of milling quality supplies, wheat buyers would do well to watch for any price effects and act quickly to cover their needs at the best value.

In its October World Agricultural Supply and Demand Estimates (WASDE) report, USDA noted that, if realized, world wheat trade would be 9 percent greater than the 5-year average of 160 MMT (5.86 billion bushels). The trade volume increase represents availability of large supplies and the continued growth of global wheat consumption. USDA expects total consumption will increase for the fourth consecutive year and reach a record 731 MMT (26.8 billion bushels), compared to the 5-year average of 694 MMT (25.5 billion bushels). That includes estimated feed wheat demand growing 6 percent to a record high 145 MMT (5.32 billion bushels). Rain increased winter wheat yields but also hurt milling quality in many production areas. In turn, lower prices are making feed wheat more competitive with corn.

USDA expects 2016/17 world wheat production to reach 744 MMT (27.3 billion bushels), up 1 percent from 735 MMT (27.0 billion bushels) in 2015/16 and 5 percent above the 5-year average. If realized, it would be the fourth consecutive year of record world production. USDA projects production will increase in six of the eight major exporting countries. Record-large world carry-in stocks add to the global surplus, resulting in the largest estimated world wheat supply on record, of which China is now expected to hold 46 percent by the end of the marketing year. USDA estimates 2016/17 world carry-in stocks at 240 MMT (8.80 billion bushels), up 11 percent from last year and greater than the 5-year average of 196 MMT (7.22 billion bushels). Total world supply will reach a projected 984 MMT (36.1 billion bushels), up 24.1 MMT from the record set in 2015/16 and 9 percent above the 5-year average of 903 MMT (33.2 billion bushels).

The ample world supply will help meet strong global wheat demand. According to USDA’s trade forecast, the U.S. will end 2016/17 with a 15 percent market share in the world wheat trade. This is up from the 2015/16 figure of 12 percent, the lowest on record, but still below the 5-year average of 17 percent. USDA now expects U.S. wheat exports to reach 26.5 MMT, up 26 percent year over year.

USDA predicts the majority of top U.S. wheat customers will import about the same amount or slightly more wheat in 2016/17 than in the prior year. Japan, the top U.S. customer over a 5-year period, will import an estimated 5.80 MMT (213 million bushels), up 1 percent from 2015/16 but 5 percent less than the 5-year average. USDA expects imports by Mexico will decline 4 percent year over year to 4.60 MMT (169 million bushels), but imports to the Philippines will increase by 3 percent to 5.00 MMT (184 million bushels). Imports by Nigeria are expected to remain unchanged year over year, but are up 3 percent from the 5-year average. Korean imports will increase 13 percent to 5.00 MMT (184 million bushels).

USDA expects Brazil to import 11 percent less wheat in 2016/17, but the origin of the Brazilian imports will also change. Argentina, Brazil’s top supplier will export 12 percent less wheat in 2016/17, so Brazil will need to shift to other origins. Year to date U.S. wheat exports to Brazil total 995,000 metric tons (MT), nearly double total U.S. sales to Brazil in 2015/16.

USDA also expects India and Morocco to import more wheat after drought hurt their domestic production. India is expected to import the largest wheat volume in a decade this year after back to back years of drought. USDA estimates Indian wheat imports will grow to 3 MMT in 2016/17, compared to the 5-year average of 116,000 MT. India is the second largest producer and consumer of wheat in the world behind China, producing an average 91.5 MMT of wheat each year. India’s beginning stocks of 14.5 MMT are 23 percent below the 5-year average of 18.9 MMT. However, Indian wheat production rebounded 4 percent year over year to 90.0 MMT, which is still 1.5 MMT below the 5-year average.

According to USDA, Moroccan wheat production will fall 66 percent year over year to 2.73 MMT, compared to the 5-year average of 6 MMT. Consequently, Moroccan’s imports are expected to reach 5.00 MMT in 2016/17, an increase of 13 percent year over year and 25 percent greater than the 5-year average.

While global wheat supplies are large, the quantity of milling quality wheat is tightening as discussed in the Aug. 25 Wheat Letter. Continued growth in wheat trade means increased competition for that smaller, high-quality wheat supply, a market dynamic that could push prices higher. Your local USW representative is ready to help ensure you are getting the wheat you need at the greatest possible value. 

USDA Reports Private Export Sales of 192K Metric Tons Of Soybeans To Unknown Destinations

(Dow Jones) -- Private exporters reported to the U.S. Department of Agriculture the following sales activity:-Export sales of 192,000 metric tons of soybeans for delivery to unknown destinations during the 2016-17 marketing year.-Export sales of 114,000 metric tons of soft white wheat for delivery to unknown destinations during the 2016-17 marketing year.The marketing year for soybeans began Sept. 1.The marketing year for wheat began June 1.USDA issues both daily and weekly export sales to the public.Exporters are required to report to the USDA any export sales activity of 100,000 metric tons or more of one commodity made in one day or quantities totaling 200,000 tons or more in any reporting period to one destination, by 2 p.m. CT on the next business day. Export sales of less than these quantities must be reported to USDA on a weekly basis.

Europe Trade Woes Spelling Trouble for TTIP

The Comprehensive Economic and Trade Agreement between the European Union and Canada may not be passed by the deadline this week. Politico reports one of Belgium’s regional leaders vowed on Tuesday not to support the deal by Friday, and Belgium cannot sign the agreement without consent from its five regional parliaments. Further, the EU cannot ratify CETA without unanimous support from its members. The European Commission will vote Friday on the trade agreement after postponing Tuesday’s vote. The deal must be approved this week to be signed at next week’s trade summit with Canada. The deal is seen as a test of whether or not the EU still has the power to negotiate trade deals. CETA is also considered a precursor to the success of the Trans-Atlantic Trade and Investment Partnership being sought between the United States and the EU. Failure of CETA would be another likely death blow to TTIP, which negations for broke down at a recent meeting. Many political leaders involved in the talks say TTIP is effectively dead at this point. Meanwhile, farmers in the EU protested both trade deals last weekend.

Ryan: Cuba Embargo Will Continue

Despite the Obama Administration lifting restrictions last week on Cuba and a quest to normalize relations with the nation, House Speaker Paul Ryan says the embargo against Cuba will continue. The Wisconsin Republican blasted the Obama administration’s latest round of regulatory changes meant to chip away at the U.S. embargo against Cuba and ease trade and travel with the island nation. The Miami Herald reports the strong rhetoric by Ryan on Cuba appears to be increasing. The embargo withholds financing for U.S. commodity shipments to Cuba as the transaction and shipment of U.S. commodities currently can only take place with third party financing. Ryan says allowing normal financing would only finance “the Castros’ grip on power” and jeopardize property rights of American businesses. The announcement last week does allow financing for farm inputs, such as crop protection products and machinery. The administration also removed a shipping barrier, keeping U.S. ships traveling directly to Cuba from returning for 180 days.

Syngenta Seeking Appeal in Viptera Lawsuit

Syngenta is seeking an appeal in a lawsuit filed by farmers regarding Agrisure Viptera branded corn. The corn contains a biotech trait that at the time of question was not approved for import to China, but was found in U.S. shipments to China in 2013 and 2014. A group of farmers is seeking $5 billion in a lawsuit because they say the discovery of Viptera corn in the export system led China to reject U.S. corn, causing a price collapse of the commodity. The court decision created nine classes within the suit. DTN reports Syngenta is asking for a chance to appeal the decision. All farmers in the U.S. who priced corn for sale after November 18th, 2013, were approved as a major class in the lawsuit. The company is dealing with multiple lawsuits regarding the issue and argues the case is unprecedented given the guarantee that tens of thousands of cases will remain separate from the class. Attorneys for Syngenta said that creating a nationwide class of farmers for the case was not fair because it would include farmers who were not harmed by the trade dispute.

USCA Opposes CME Proposed Changes to Live Cattle Futures

The U.S. Cattlemen’s Association says proposed changes to live cattle futures by CME Group will not address the concerns of producers across the country. CME group is considering switching to a cash settlement process for live cattle futures, the same settlement process for other livestock futures operated by CME. Modifications to the physical delivery process are also being considered. USCA Marketing Committee Chair Allan Sents explains “the need to evaluate the current state of the livestock marketplace is real,” but says the proposal is a step in the wrong direction. USCA says the proposed changes will do nothing to impact the amount of high frequency, overly speculative trading, which the organization says must be addressed to achieve market stability. USCA concludes “efforts must instead be made toward encouraging ‘long’ participation and addressing the many issues currently within the futures market, not the settlement process.