How Will Washington Fix Estate And Income Taxes?

(DTN) -- Keep a close eye on how Washington chooses to fix estate and income taxes after President-elect Donald Trump takes office. "There's more than ample room for housecleaning in the tax code," CliftonLarsonAllen CPA and ag tax principal Andy Biebl said. "It doesn't get massive publicity in the grand scheme of things, but we're overdue for a cleanup." The Republicans' surprise election means one likely quick reversal will be IRS efforts to end stock discounting when families transfer minority interests in their business, Biebl and other ag CPAs now say. That's been a popular tax saver for larger farm estates, permitting discounts of 30% to 40% in many cases. An IRS regulation proposed by the Obama administration last August had been expected to ban the practice in early 2017, but more than 3,500 organizations voiced opposition to the change. A public hearing is scheduled Dec. 1, but Biebl and other accountants now expect IRS to drop its attack. More important, House Speaker Paul Ryan, R-Wis., and Ways and Means Chairman Kevin Brady, R-Texas, are likely to take the opportunity to propose massive reforms, perhaps the most significant since the 1986 landmark tax act during the Reagan era. Back then, Congress replaced 15 personal income tax rates with two brackets and reduced the top federal rate from 50% to 28%. It also took a massive swipe at tax shelters that had attracted passive investors to cattle feeding and oil investments. COMPETING PLANS Today's tax reform could be equally comprehensive. Both House and Senate tax leaders have been floating tax overhaul proposals for much of the past five years, so much of the groundwork already has been laid for wholesale reform now, other tax advisers say. What's not clear, however, is whose version of tax simplification will eventually prevail. "I'm sure those earlier drafts will be resurrected, but this is really sausage-making legislation," said Brian Kuehl, director of federal affairs for KCoe-Isom. "The House and Senate will have different versions of reform, and they're not going to be a mirror image of each other." House Republican leaders posted their "Better Way" version of tax reform last summer (https://abetterway.speaker.gov/… ), but also in the mix is a detailed 2014 proposal from former House Ways and Means Chairman Dave Camp, R-Mich., and President-elect Trump's own election promises. Former Senate Finance Committee Chair Max Baucus, D-Mont., also drafted a massive plan for tax reform, just prior to his retirement several years ago. "The 'Better Way' proposal is more aspirational than directional," said Kuehl, a former Baucus senior staffer. "If you waved a wand, it's what House Republicans want in a bill, but the numbers have to add up." Because of those competing versions, for example, "terms of how estate taxes would be treated are pretty sketchy," Biebl agreed. For example, while House leaders pledged to end estate taxes, President-elect Trump had advocated a 20% capital gains tax on estates over $10 million that hold appreciated property, in effect treating property within the estate as if it had been liquidated at death. President-elect Trump's website initially proposed exemptions for farms, but the exact language has yet to be detailed. At the moment, estate tax experts surmise that rule would exempt working businesses and farms until the death of the second owner (spouse) or until the business was sold. But the rules are "vague and incomplete" at this stage, said Nick Houle, another CliftonAllen CPA and wealth adviser. "There's also no mention of gift tax treatment or the generation-skipping tax," he added, provisions that could circumvent estate taxes unless new guidelines are drawn. Otherwise, people could simply gift assets away during their lifetime. Also on the table are significant cuts in income tax brackets for individuals and small business, an end to the Alternative Minimum Tax, reduced taxation on savings and investments, larger standard deductions and perhaps instant write-offs of most business investments other than land. The House Republicans' "Better Way" plan calls for lowering rates on business income for sole proprietors and other pass-through entities to no more than 25% on their individual tax returns, down from current rates that can reach as high as 44.6%. If enacted, it would be the lowest rates for small-business owners since before World War II. Just be aware some sacred cows may be culled to help pay for reforms, so agriculture may need to fight to keep its special treatment, Kuehl warned. Curbs on cash accounting could be a top target, since the method is widely used not just by farmers, but by engineers, accountants and architects to defer taxes. Ending that provision alone could raise $23.6 billion over a decade, budget analysts say. It's a sizable down payment to reduce the deficit or fund other priorities. A 2014 Informa Economics study, commissioned by KCoe-Isom, estimated that even if farms with sales above $10 million were forced to adopt accrual accounting for tax purposes, the rule would affect 73% of beef production and 30% of the U.S. milk supply. Farm operations would owe $4.84 billion in accrued tax liabilities but have only $1.4 billion in cash on hand to pay their tax burden. "It's really important for farmers and ranchers to look at tax reform holistically and study the whole package," Kuehl said. "You might be able to immediately expense your purchases, but if you can't carry losses backward or forward, it's hard to know if you'd come out ahead." Another question mark is whether interest payments on land will be deductible. With so many variables, KCoe-Isom is building a computer simulator to help its ag clients assess how they would fare under various proposals and over various ag cycles. "We want to take some guesswork out of it," he said. "We can do better than shoot from the hip this time." Stakes are high, so keep abreast of news. Even with cash accounting and other special tax privileges for agriculture, farm businesses can pay sizable taxes now. "Wage earners pay a little bit of tax each week in their withholding. If you're a successful farm proprietor, you have to write one big check when filing your Schedule F. Often the numbers can be eye-popping," Biebl said.

US Dept. of Commerce Issues Determination on Mexico-US Sugar Trade Deal

There is some indication that not all the requirements are being met relative to the U.S.-Mexico sugar trade agreement and there may be instances of noncompliance, according to a notice posted by the US Department of Commerce (DOC).The decision was previously delayed, with the most recent delay taking place November 23.The announcement came after the DOC conducted a review requested by sugar companies of the U.S.-Mexico agreement reached in 2014.The U.S. government needs more information, however, to finish the review of the deal, according to a memo by a DOC official, Paul Piquado, Reuters reported.Given that the agency is looking for additional information, it's clear this is not the final chapter in this situation and it is one that ag interests beyond sugar will monitor in case any additional trade frictions mount between the two sides and spill into other commodity areas. 

Cargill, BASF Developing Omega-3 Rich Canola

A new type of canola could give aquaculture farmers a more sustainable way to raise fish rich in omega-3 fatty acids. Cargill and BASF are developing the canola as an alternative to fish oil in aquaculture feed that could ease harvest pressure on wild fish populations that currently supply much of that oil. In feeding trials conducted with salmon, Cargill was able to completely replace fish oil in feed rations with oil from the special canola variety. A Cargill spokesperson says the new canola could “create tremendous opportunities across the global food and feed markets.” Currently, raising fish rich in omega-3s means supplementing their feed with fish oil. This new canola, which is genetically engineered to make long chain omega-3 fatty acids, will offer a more sustainable alternative as it eases pressure on finite marine resources. Testing and regulatory approval for both the canola and the enhanced canola oil is underway, and it is expected to reach market sometime after 2020. 

Trump EPA Administrator Pick on the Horizon

President-elect Donald Trump could soon pick his choice to lead the Environmental Protection Agency. Politico reports the shortlist includes Oklahoma Attorney General Scott Pruitt and Kathleen Hartnett White, director of the Armstrong Center for Energy and the Environment at the Texas Public Policy Foundation. Both candidates oppose the EPA’s Waters of the U.S. rule, also opposed by most agriculture groups. Pruitt was one of the first state attorneys general to file suit against EPA over WOTUS, and he opposes other agency regulations that he says amount to regulatory overreach. Hartnett White calls WOTUS a power grab. She has previously headed the Texas Commission on Environmental Quality and is a member of the Texas and Southwestern Cattle Raisers Association

Mexico Prepared to Modernize NAFTA, Wants Guest-Worker System

An ambassador of Mexico says the nation is prepared to modernize the North American Free Trade Agreement and seeks to restart a guest-worker system. Mexico says restarting the guest-worker system could address concerns about illegal immigration. Mexico’s ambassador to the U.S., Carlos Sada (Sah-duh) said: “There is no need to fight each other,” according to the Arizona Daily Star newspaper. His comments come in response to U.S. President-elect Donald Trump’s pledge to renegotiate NAFTA. Those efforts, according to Mexico, could include renaming NAFTA and educating citizens of both countries on the benefits of the agreement. Sada also said the movement of workers across the border must be reinstated. He says many of the workers that have crossed the border have expressed a desire to return to Mexico and maintain their homes and families there. He says: “The circular migration of the past was broken, and that’s when the problems began,” adding “We need to re-establish the movement."

Japan Still Determined on Completing TPP

Officials from Japan are urging Canada to join the fight against U.S. trade protectionism. Japan is still determined to save the 12-country Trans-Pacific Partnership, despite U.S. President-elect Donald Trump’s vow to take the United States out of the agreement. Japan hopes Trump can still be persuaded to back off from his opposition to TPP before his January inauguration, according to the Canadian Press news agency. TPP would deepen economic ties between Canada and Japan. The two nations have sought increased trade with each other for years, setting aside a bilateral trade agreement in 2014 as TPP talks progressed. Japan is not ready to restart the bilateral talks in fear of sending the wrong signal to President-elect Trump. TPP’s rules dictate that the deal cannot go ahead unless it has the backing of countries making up 85 percent of the pact’s GDP –that effectively gives the U.S. and Japan the power to kill the trade deal.

More Cattle Culling Planned in Canada Amid Bovine TB

Thousands of more cattle are booked for culling amid a bovine tuberculosis outbreak in Alberta, Canada. The Canadian Food Inspection Agency, or CFIA, announced this week a herd of animals known to co-mingle with the six confirmed TB-infected cattle has expanded to cover adult cattle and calves on 18 premises, up from just six. Online publication Ag Canada reports the total size of the herd now runs roughly around 10,000 head of cattle, which either have been or will be destroyed. Nearly all the adult animals in the herd have been tested. However, calves will be destroyed without testing, according to the CFIA. Meat from destroyed animals that are later ruled TB-negative will be eligible for food use. The investigation follows a notice from the U.S. Department of Agriculture that bovine TB was detected in a cow from Alberta at a U.S. packing plant. The strain of the bovine TB organism found so far in the probe is different from strains previously discovered in Canada. It is, however, “closely related” to a strain originating from cattle in central Mexico in 1997. 

California is taking its fight against global warming to the farm

The nation's leading agricultural state is now targeting greenhouse gases produced by dairy cows and other livestock.Despite strong opposition from farmers, Gov. Jerry Brown signed legislation in September that for the first time regulates heat-trapping gases from livestock operations and landfills.Cattle and other farm animals are major sources of methane, a greenhouse gas many times more potent than carbon dioxide as a heat-trapping gas. Methane is released when they belch, pass gas and make manure."If we can reduce emissions of methane, we can really help to slow global warming," said Ryan McCarthy, a science advisor for the California Air Resources Board, which is drawing up rules to implement the new law.Livestock are responsible for 14.5 percent of human-induced greenhouse gas emissions, with beef and dairy production accounting for the bulk of it, according to a 2013 United Nations report.Since the passage of its landmark global warming law in 2006, California has been reducing carbon emissions from cars, trucks, homes and factories, while boosting production of renewable energy.In the nation's largest milk-producing state, the new law requires dairies and other livestock operations to reduce methane emissions 40 percent below 2013 levels by 2030. State officials are developing the regulations, which take effect in 2024."We expect that this package ... and everything we're doing on climate, does show an effective model forward for others," McCarthy said.But dairy farmers say the new regulations will drive up costs when they're already struggling with five years of drought, low milk prices and rising labor costs. They're also concerned about a newly signed law that will boost overtime pay for farmworkers."It just makes it more challenging. We're continuing to lose dairies. Dairies are moving out of state to places where these costs don't exist," said Paul Sousa, director of environmental services for Western United Dairymen.The dairy industry could be forced to move production to states and countries with fewer regulations, leading to higher emissions globally, Sousa said."We think it's very foolish for the state of California to be taking this position," said Rob Vandenheuvel, general manager for the Milk Producers Council. "A single state like California is not going to make a meaningful impact on the climate."Regulators are looking for ways to reduce so-called enteric emissions — methane from the bodily functions of cows. That could eventually require changes to what cattle eat.But the biggest target is dairy manure, which accounts for about a quarter of the state's methane emissions.State regulators want more farmers to reduce emissions with methane digesters, which capture methane from manure in large storage tanks and convert the gas into electricity.The state has set aside $50 million to help dairies set up digesters, but farmers say that's not nearly enough to equip the state's roughly 1,500 dairies.New Hope Dairy, which has 1,500 cows in Sacramento County, installed a $4 million methane digester in 2013, thanks to state grants and a partnership with the local utility, which operates the system to generate renewable power for the grid.But co-owner Arlin Van Groningen, a third-generation farmer, says he couldn't afford one if he had to buy and run it himself."The bottom line is it's going to negatively impact the economics of the California dairy industry," Van Groningen said of the new law. "In the dairy business, the margins are so slim that something like this will force us out of state."State officials say they're committed to making sure the new regulations work for farmers and the environment."There's a real opportunity here to get very significant emissions reductions at fairly low cost, and actually in a way that can bring economic benefits to farmers," Ryan said. 

New Study Shows Beef Contains Antioxidants Not Found In Plant Food

Beef contains many antioxidants not found in plant food that are vital for human health and child development, new research out of Texas A&M concluded.The study, funded by the Beef Checkoff, notes right off the bat that beef consumption in the U.S. has declined by about 14 percent over the past decade “due to a variety of factors, including insufficient knowledge of animal protein.”Published in the Journal of Animal Science, the study examined the composition of amino acids in the beef chuck, round and loin, finding that all are excellent sources of proteinogenic and antioxidant amino acids and peptides to improve human growth, development and health.“Our findings may help guide future decisions regarding human and animal nutrition,” the A&M authors wrote. 

Winter Wheat Conditions Steady

(DTN) -- U.S. winter wheat conditions held steady last week compared to the previous week, according to the last weekly USDA Crop Progress report of 2016 released Monday.USDA reported 92% of the winter wheat crop had emerged as of Sunday, even with a year ago and even with the five-year average of 92% emerged."Fifty-eight percent of the winter wheat crop was rated good to excellent, resulting in keeping DTN's Winter Wheat Condition Index unchanged at 147. The index is up from 146 a year ago and above the five-year average of 132. Monday's report is neutral for winter wheat," said DTN Analyst Todd Hultman. 

GAO Says RFS Likely to Fall Short of Greenhouse Gas Goal

The Government Accountability Office (GAO) Monday claimed advanced biofuels are not likely to get the fuel market penetration the Renewable Fuel Standard predicted. Online newspaper The Hill reports that means greenhouse gas emissions are unlikely to fall as much as predicted under the 2007 law. A pair of GAO reports reached the conclusion after explaining there is limited production of advanced biofuels for blending and a limited potential for expansion by 2022. A report on greenhouse gasses stated: “In the absence of advanced biofuels, most of the biofuel blended under the RFS to date has been conventional corn-starch ethanol, which achieves smaller greenhouse gas emission reductions compared with advanced biofuels.”

China: Potential Trade War Not a ‘One-Way Street’

Officials in China are warning a potential trade war between the U.S. and China would not serve as a ‘one-way street.’ The comments stem from the possibility President-Elect Donald Trump could impose tariffs on Chinese goods, sparking a feared trade war between the two nations. Beijing has signaled some optimism regarding the issue as Trump has backed off of some other campaign pledges. Still, as Bloomberg reports, the message from China is that any move to tax Chinese imports would bring retaliation, the U.S. economy would take a hit, and America would damage its longstanding ties with Asia. China’s Foreign Affairs Committee chair said a trade war is not something China wants, but while referring to Trump’s campaign pledges regarding trade with China, warned: “It won’t be one-way traffic.” For now, Bloomberg speculates China has a two-pronged response to Trump: Warn him of the consequences of unilateral action and accelerate efforts to secure an Asia-wide trade pact that does not include the United States.

Obama Administration Finishing Many Regulations

Before President-elect Donald Trump takes office next month, the Obama Administration is working to issue as many as 98 final regulations. Politico reports 17 of those actions under review are considered "economically significant," with an estimated economic impact of at least $100 million a year. Agencies under the Obama Administration are rushing the final rules before a new Congress takes over next year, despite vows by Republicans in Congress to block many of the regulations. One of the more significant rules sets preliminary steps for the Environmental Protection Agency to regulate methane emissions from existing oil and gas infrastructure. Also, the Bureau of Land Management’s major rule on leases for wind and solar projects on federal land is expected before Obama leaves office.

Vilsack Disappointed in China Biotech Approval Delays

U.S. Agriculture Secretary Tom Vilsack expressed disappointment following meetings between the U.S. and China last week that failed to make progress on biotechnology approval delays. The U.S.-China Joint Commission on Commerce and Trade did not focus on approval delays for biotechnology, or genetically modified crop traits. Vilsack says China has made progress in the approval process, but “has not fully implemented commitments” on biotechnology approvals. In 2015, China agreed to streamline the nation’s biotech approval process. Last week, the U.S. requested that China clarify how its approval system for biotech traits will operate in a “predictable, transparent, and scientific manner.” Vilsack says the U.S. will be watching China’s National Biosafety Committee meeting next month and expects the remaining eight biotech traits will be reviewed based on science and risk, and approved. 

Russia May Face Wheat Export Problems

Russia may have a harder time exporting its wheat this season as bumper crops expected in Australia and Argentina increase competition for buyers.Shipments from Russia, the world’s biggest exporter, have so far lagged expectations after a record harvest. That means the country has more left to sell as the southern hemisphere producers add to global supplies.Wheat crops in both Australia and Argentina will rise to the highest levels in five years, according to the U.S. Department of Agriculture. They are the fifth- and eighth-largest exporters, respectively, according to the International Grains Council.“If they offer discounted prices to compete on our main markets such as Egypt and Bangladesh, things may get more difficult,” Oleg Kryukovskiy, a trader of Russian wheat at GTCS Trading DMCC in Dubai, said by phone. “It’s a factor we’ll need to take into account.”Argentina may collect 14.4 million metric tons of wheat, 27 percent more than last year, according to the USDA. Australia’s crop will rise 16 percent from the previous year to 28.3 million tons. Argentina and Australia end wheat harvesting in January. That’s when supplies from the countries will start coming to market, according to Kryukovskiy.Low PricesRussia will probably have exported 13.3 million tons by December since the start of the 2016-17 season in July, according to consultant SovEcon in Moscow. That compares with 14.4 million tons two years ago, government statistics show, the latest comparable figures because of delays registering cargoes related to a wheat-export tax in later periods.On the flipside, low prices may curb supplies from southern-hemisphere producers.Australia won’t sell at prices that are too low, the Australian Export Grains Innovation Centre said. The low cost of borrowing in large wheat-producing nations such as Australia means farmers don’t have to rush to sell their crops to meet repayments, Ross Kingwell, the researcher’s economics and business-analysis manager, said by phone from Sydney.“A lot of businesses can afford the cost of carrying stocks,” Kingwell said. “Farmers will say, ‘I’m not going to sell at an even lower price. I’ll just hang on to the grain.”’Yet as winter sets in, Black Sea storms and ice cover in the Azov Sea may hamper port traffic, further slowing Russian exports. In addition, a higher-than-usual share of low-quality wheat, typically used as animal feed, has cut demand for Russian supplies.Egypt, one of the biggest customers, suspended purchases for most of September over a dispute with traders, and a stronger ruble this year has made Russian supplies less competitive. 

Northwest Farm Credit Services Montana President Receives Award

SPOKANE, Wash. (Nov. 28, 2016) – Northwest Farm Credit Services’ Montana President Bill Perry recently received an award for his outstanding service to agriculture. Montana State University’s College of Agriculture named Bill Perry Outstanding Alumni 2016. From Judith Gap and now living in Bozeman, Perry graduated from MSU in 2002 with a B.S. degree in ag business. As a student at MSU, he was vice president of the student body and a hiring committee member in 2000 for MSU President Geoffrey Gamble. He subsequently received his M.S. degree in ag economics from Kansas State University. Perry was chair of the board of directors for the MSU Alumni Association and was named Alumni Relations Board Volunteer of the Year. He currently serves on the board of directors for MSU’s Alpha Gamma Rho fraternity. Perry joined Northwest FCS in 2004 and was named the company’s Montana president in 2015. 

Latest Cold Storage Inventories

Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist 

Considerable ado has been made about large beef cold storage totals for the past year.  This has resulted in questions, concerns and confusion among cattle producers and others about the implications of large cold storage holdings.I have gotten numerous questions about “huge supplies of beef in cold storage that would keep beef markets depressed”.  Misunderstanding has been increased by misleading media stories about cold storage.One such recent article by a major news service was entitled “U.S. Beef Supplies at Highest in Records Dating Back a Century”.  The article was referring to the reported October beef cold storage total of 532 million pounds, the largest monthly total since records began in December 1915. However, beef cold storage, which is frozen beef supplies maintained in commercial warehouses for more than 30 days, represents roughly two percent of annual beef production. In other words, 98 percent of beef is marketed as chilled fresh beef and does not pass through cold storage.Record cold storage inventories do not imply record beef supplies.  Indeed, beef supplies, as measured by total annual beef production, exceeded the projected 2016 beef production total in 17 of the past 21 years.October cold storage represented 2.15 percent of annual beef production (a rolling twelve month total of beef production), fractionally less than the 2.16 percent from one year ago and less than the record monthly level of 2.19 percent in January, 2016. Cold storage inventories typically increase seasonally in the winter and decrease into the middle of the year. Since beef in cold storage is typically held for six to twelve months, a twelve-month average of monthly cold storage inventories provides a good measure of cold storage management over time.  The twelve-month average of cold storage inventories for October was 1.97 percent of annual beef production compared to 2.01 percent at the same time last year.Since 2012, the monthly cold storage pipeline has averaged 1.82 percent of annual beef production and has ranged from 1.61 percent (October and November, 2014) to 2.07 percent (January, 2016). Therefore, cold storage inventories, or more correctly, changes in cold storage inventories from month to month are too small to be a direct beef supply issue except possibly in a few specific markets.While cold storage is only a minor component of total beef supplies, cold storage behavior is indicative of market conditions and challenges.Cold storage inventories include an unspecified mix of boneless beef trimmings and muscle cuts along with bone-in beef cuts.  Bone-in beef cuts in cold storage have generally declined over time and represented 7.2 percent of October total cold storage inventories; the lowest proportion in over 20 years.The bulk of cold storage inventories are boneless product and are believed to consist mostly of trimmings and end meats.  Rarely, and only under exceptional circumstances, significant quantities of middle meats may be put into cold storage.  These frozen high quality steaks do not enter normal chilled meat markets when marketed and are typically sold at a discount.  Trimmings and end meats are more commonly frozen though maintaining frozen stocks is expensive and is not done without a good economic reason.Holding beef in cold storage is motivated primarily by two separate but related market activities: the ground beef market and international beef trade.Changing flows of beef imports and exports may contribute to variation in cold storage inventories.  For example, the build-up of cold storage in late 2015 was undoubtedly related to the dramatic increase in beef imports last year, most of which was frozen processing beef and was pulled out of cold storage over several months. Beef destined for frozen exports may contribute to increased cold storage inventories when exports are growing.Increased fed slaughter in 2016 has produced more fed trimmings and lean beef supplies are larger due to additional cow slaughter. Sharply growing beef production and a relatively weak ground beef market in 2016 likely account for the build-up to record cold storage supplies in October.Despite being only a small part of the overall beef supply, large current cold storage inventories of beef certainly reflect the marketing challenges that accompany growing beef production in 2016. 

USDA Forecasts 2016 Grocery Store Food Price Decline

Food-at-home (supermarket) prices are now forecast to decrease between 1.25% and .25% in 2016, the first year since 1967 that grocery store food prices could reflect annual deflation, according to an updated forecast from USDA's Economic Research Service (ERS)."Recent declines in prices for beef and veal, poultry, and eggs" are behind the now-lower forecast, ERS noted. "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. A strong U.S. dollar makes U.S. goods less desirable to foreign markets, leaving more potential exports on the domestic market. Comparing the 2015 average price level with the 2016 level to date, the CPI for food-at-home is down 1.1%."Another factor: "Retail food prices have remained flat or decreased for eight of the first ten months in 2016."The reduction in grocery store prices also lowered the overall food price increase to a range of 0.25% to 1.25%, putting the rise in line with the lowest level seen since at least 1974 of an increase of 0.8% seen in 2010.One area not revised is for forecast for food-away-from-home costs to rise 2.5% to 3.5%. "Food-away-from-home prices have been rising consistently month-over-month due, in part, to differences in the cost structure of restaurants versus supermarkets or grocery stores," ERS observed. "Restaurant prices primarily comprise labor and rental costs with only a small portion going toward food. For this reason, decreasing farm-level and wholesale food prices have had less of an impact on restaurant menu prices."While forecast to rise in 2017, ERS economists now forecast that increase to be just 0.5% to 1.5%, down from their month-ago outlook. "Despite the expectation for declining prices in 2016, poultry, fish and seafood, and dairy prices are expected to rise in 2017," ERS said. They included their usual caveat that weather, unforeseen events, the value of the US dollar or shifts in energy prices could alter the 2017 outlook.Reductions in 2016 from forecasts the prior month were noted in meats, poultry, fish, eggs and dairy products, with individual meat products such as pork, beef and other meets revised down again. 

Feedlots Continue Strong Marketing Pace

Feedlots continued a strong marketing pace in October with marketings up 4.6 percent year over year, despite one less business day in the month.October placements followed the September monthly decrease with another 5 percent reduction in placements year over year.  The combination of large marketings and fewer placements left the November 1, 2016 cattle on feed inventory down 1.3 percent from one year ago.Despite the year over year decreases in placements in September and October, total feedlot placements are up 673,000 head from 2015, a 3.9 percent increase for the year to date.  However, year-to-date feedlot marketings through October are up an impressive 5.2 percent year over year, some 855,000 head more than the same period last year. In fact, in the last six months, the year over year increase in feedlot marketings has been more than double the increase in the number of cattle placed in feedlots compared to last year.The faster pace of cattle movement through feedlots has translated in more cattle slaughter and more beef production in 2016 than previously expected.Year-to-date beef production is up 5.3 percent from last year.  Steer slaughter, in particular, has exceeded expectations this fall and is up nearly 7 percent year over year so far this year, though is expected to moderate to smaller year over year increases for the remainder of the year.Additional steer slaughter, combined with year over year increases in heifer and cow slaughter have pushed total cattle slaughter up 5.6 percent so far this year.Increased slaughter is partially offset with lower carcass weights since May. Weekly steer carcass weights have averaged 9 pounds less since May with heifer and cow carcass weights down about 2 pounds on a weekly average basis.Carcass weights have been down from last year’s record levels despite excellent feeding conditions this fall.  Both steer and heifer carcass weights appear to have peaked seasonally the last week of October and should decline for the remainder of the year.  The first winter storm which covered the central and northern plains last week may help pull carcass weights down faster in November.The decrease in feedlot placements in September and October likely means that some feeder cattle are being retained and will be pushed into next year.Certainly there has been plenty of market incentive for cattle to be retained out in the country this fall.  This may result is some additional increase in feeder supplies in 2017 on top of growing feeder supplies due to a bigger 2016 calf crop.  (Remember, however, that growing domestic feeder supplies are being partially offset by a 29 percent year over year decrease in Mexican and Canadian feeder cattle imports so far this year, totaling 336,000 head fewer imports through September.)These delayed fall feeder cattle are not expected to burden feeder markets excessively unless they get bunched up next spring.However, these retained feeders are being held in a wide variety of stocker and backgrounding programs across the country and will likely be spread out in weight and timing next spring.  Wheat pasture stocking has been slow this fall and additional stocker placements on wheat may continue after January 1 as producers look to graze out more wheat acres unless wheat market prospects improve significantly. 

MSU COLLEGE OF AGRICULTURE STUDENTS WIN MORE THAN $400,000 IN SCHOLARSHIPS

The Montana State University College of Agriculture distributed more than $400,000 in scholarships to more than 200 agriculture students at its annual student scholarship banquet held earlier this month.The banquet, held during the college’s annual Celebrate Agriculture event, attracted more than 300 Montana agricultural supporters and students.College of Agriculture faculty and staff acknowledged agriculture students who received scholarships from a variety of donors during the 2016-2017 year, in addition to recognizing the college’s 2016 Outstanding Agricultural Leader, Jim Hagenbarth. The banquet dinner featured a Montana-made meal highlighting local and regional foods and their agricultural producers.With more than 110 distinct, named scholarships housed in the College of Agriculture, Montana businesses, families and individuals contributed scholarship donations in every size and shape, from a “full ride” (tuition and fees) to a silver belt buckle, according to Nora Smith, assistant dean of the College of Agriculture and Montana Agricultural Experiment Station.“We are so fortunate to have such outstanding support for our students and such a commitment from our scholarship donors,” Smith said. “Our donors understand the importance of keeping college accessible for Montana students, and they clearly see the value in investing in our agriculture future, which begins with our students.”The more than 200 College of Agriculture students who received scholarships represented every option and curriculum in the college’s academic departments, with scholarships recipients averaging  a 3.6 (out of 4.0) cumulative GPA, according to Smith.  The college’s scholarship selection committee considered nearly 400 scholarship applications, Smith added, and noted that the committee consists of faculty from every department in the college. The committee is coordinated by Smith and Jessica Murdock, MSU College of Agriculture student services coordinator.“These awards are not only going to students who are in financial need, but they are also awarded on merit and interests,” Smith said. “The scholarships are going to high-achieving, motivated students who are engaged on and off campus, who are excelling in a variety of classroom environments. A lot of these students are really involved in the college’s clubs and organizations as well.”The college hosts an online platform for scholarship applications for students, which streamlines the application process into a singular submission for the scholarship selection committee. That process gained particular notice in a national poll that ranked the College of Agriculture as the fourth best college of agriculture in the country, according to Campus Explorer.Many of the scholarships provided to students come from current and historical Montana producers and generations of families who have long and storied connections to the college, according to Kevin Brown, senior development director for the College of Agriculture.“What’s remarkable about scholarship giving, particularly in the College of Agriculture, is the commitment to supporting the next generation of agricultural leaders – from all walks of life and from every industry,” Brown said. “The agriculture community in Montana has a healthy and wonderful commitment to supporting current students who want to carry on MSU’s agricultural legacy.”Some of the scholarship funds date as far back as the 1950s, and continue today bearing the name of a family member from a farm or ranch, or former MSU Cooperative Extension agents, or Montana Agricultural Experiment Station or college faculty, Brown said. Other scholarships are given from regional and local commercial agribusinesses, the Montana Wheat and Barley Committee, Montana FFA, Montana Cattlewomen’s Association, First Security Bank, Alpha Zeta Society, statewide crop and beef producers and a host of College of Agriculture alumni.The College of Agriculture includes six academic departments and seven off-campus research stations through the Montana Agricultural Experiment Station. More than 1,200 students from 44 states and 15 countries are represented in the college’s student populace. 

President-Elect Trump To Dial Back Regulatory Restrictions On Energy

On energy, Trump made it clear he would dial back regulatory restrictions on exploration or production of fossil fuels. By doing so, the president-elect indicated that unleashing such production would lead to millions of new jobs. Trump said he would cancel "job-killing restrictions on the production of American energy, including shale energy and clean coal, creating many millions of high-paying jobs. That's what we want. That's what we've been waiting for."Trump did not offer details about other regulatory changes except to say he would create a rule that says for every one new regulation, two old regulations must be eliminated. "So important," Trump said of the proposal.Tying infrastructure to national security, Trump said he asked the Department of Defense and chairman joint chiefs to create a plan to protect vital infrastructure from "cyberattacks and all other forms of attacks."Regarding immigration, Trump said his first action would be to direct the Department of Labor to investigate all abuses of visa programs that undercut the American worker.Trump's ethics reform agenda seemed to target and limit the job opportunities for outgoing Obama administration officials. Trump said that, "as part of our plan to drain the swamp, we will impose a five-year ban on executive officials becoming lobbyists after they leave the administration, and a lifetime ban on executive officials lobbying on behalf of a foreign government." 

Milk Prices Look Better For End Of The Year

Milk prices certainly look a whole lot better for the end of the year than they looked just one month ago. Cheese prices have moved contra seasonally and could result in Class III milk prices that that could be the highest of the year if it holds. The December contract is still wide open for impact from the underlying cash as it is just beginning to be priced as far as the trade is concerned. Cheese prices will need to hold near this level for the next month for this to become a reality. If cheese prices decline, Class III contracts will follow. The question is, “Can these prices hold through the next month?”USDA’s Dairy Market News publication reported “some Midwest manufactures report signs of the holiday cheese pipeline filling.” Time of year would be right for much of the holiday demand to be nearly satisfied, but as long as fresh cheese demand is strong and supply tight, block cheese price will remain high. Cheese production is expected to increase over Thanksgiving as more milk will be available for manufacturing. This certainly will not overwhelm the market and increased milk supply will be welcomed by many plants.Not only is domestic demand good, but there may be increased interest from the international market due to lower milk production in other countries and well as a steady rise in world prices. The latest Global Dairy Trade auction increased 4.5% moving it to the highest trade weighted average since July 2014. Butter price on the auction reached $1.90/lb with cheese reaching $1.68/lb. Although these prices are better than they had been, domestic prices still remain higher and on top of that we have a very high U.S. Dollar which makes it more expensive. However, a high currency may not mean much of world supply tightens and buyers step up to purchase at whatever price they can get it.The U.S. certainly has a plentiful cheese supply that can be used to fill market voids if the product is right to meet the needs of the buyers.Strong milk production will insure sufficient supply for those who want it. Spot milk has been somewhat difficult to find by those plants that desired to keep operations running on full schedules. That may begin to change soon as milk production remains strong and high demand for the holidays eventually declines. The latest milk production report for October showed U.S. milk production up 2.5% from a year ago. This is the highest percentage gain of milk production so far this year on a monthly basis once the adjustment is made for leap day. Milk production is increasing and prospect for higher prices through the end of the year and next year will keep production strong. However, even if cash prices and milk price decline early next year, it likely will not make any difference as far as milk production is concerned. There was very little, if any slowing earlier this year when milk prices moved back to 2009 levels for one month. Increasing prices after May improved the outlook and resolve of dairy farmers to keep barns full and production strong. The only way we may see a contraction of milk production is to have an extended duration of low milk prices and we certainly do not want to see that happen. If only world prices continue to increase and international buyers come to our shores looking for dairy products can we breathe a sigh of relief otherwise, we may possibly see a dip in milk prices before a long-term trend of higher prices is realized. That dip is one you will want to avoid using a flexible marketing strategy. 

Milk Production Climbs Over 2.5%

The United States Department of Agriculture reported milk production climbed 2.5% over year-earlier levels in October with cow numbers also up 15,000 head. Cow numbers did dip 2,000 head from September. More striking, California milk production surged 1.8% over a year ago, the first time in 23 months that milk production was up year-over-year. The gains came on the strength of more milk per cow in the Golden State, because cow numbers are still down an estimated 11,000 head from a year ago. Texas reported the largest jump, with milk production up 8.2% from a year-ago and cow numbers up some 26,000 head. These larger herd numbers might still be the result of fallout from last winter’s blizzard. Producers there are still waiting to see if cows will recover from the blizzard in their next lactation, and are still holding on to large numbers of heifers in case they don’t. Kansas was also up 7.7% in October, with cow numbers up 5,000 head (+3.5%). Of the major dairy states, Wisconsin was up 2.2%, Idaho, +4.0%; New York, 4.7%; and Pennsylvania, 2.2%. Michigan was up 4.9% (with cow numbers up there 12,000) and South Dakota, up 4.4%. 

Northwest Farm Credit Services’ Idaho State President Receives Award

SPOKANE, Wash. (Nov. 22, 2016) – Northwest Farm Credit Services’ State President Blair Wilson of Nampa, Idaho recently received an award for his outstanding service to cooperatives. Idaho State President Wilson received the Northwest Regional Cooperative Award, which is determined by nomination and selected by cooperatives in Idaho, Oregon and Washington. The award recognizes a lifetime of exceptional service to cooperatives in the Pacific Northwest. Wilson, who grew up on a ranch in Lapwai, Idaho, graduated from the University of Idaho in agribusiness in 1979. His career has spanned more than 37 years with Northwest FCS, which named him Idaho state president in 2015. Wilson has also been involved as a volunteer, board member and office holder with a number of ag-related groups, including Leadership Idaho Ag, Idaho Co-op Council, Idaho Ag in the Classroom, Food Producers of Idaho and University of Idaho Ag Consulting Council. He currently serves as chair of the Idaho Foodbank. Northwest FCS is a $10.9 billion financial cooperative providing financing and related services to farmers, ranchers, agribusinesses, commercial fishermen, timber producers, rural homeowners and crop insurance customers in Montana, Idaho, Oregon, Washington and Alaska. Northwest FCS is a member of the nationwide Farm Credit System that supports agriculture and rural communities with reliable, consistent credit and financial services. For more information, go to northwestfcs.com 

Inspections Report Bullish For Corn, Soybeans And Wheat

OMAHA (DTN) -- Corn, soybean and wheat inspections were all bullish in this week's export inspections report, according to DTN Analyst Todd Hultman.Corn weekly export inspections were 34.5 million bushels (875,976 metric tons) for the week ending Thursday, Nov. 17. This is above 19.7 mb for the same week a year ago. Inspections for 2016-17 totaled 462 million bushels, up 83% from the previous year and well above USDA's projected 17% demand increase. Monday's report was bullish for corn, Hultman said.Soybean weekly export inspections were 98.0 mb (2,666,079 mt) for the week ending Nov. 17. This is above 68.1 mb for the same week a year ago. Inspections for 2016-17 total 805 million bushels, up 21% from the previous year and above USDA's projected 6% demand increase. Monday's report was bullish for soybeans, Hultman said.Wheat weekly export inspections were 15.8 mb (429,770 mt) for the week ending Nov. 17. This is above 10.0 mb for the same week a year ago. Marketing-year inspections for 2016-17 total 473 mb, up 29% from the previous year and above USDA's projected 26% demand increase. Monday's report was bullish for wheat, Hultman said. 

Trump And Advisers To Push For NAFTA Changes

(Dow Jones) -- Rather than kill the North American Free Trade Agreement, Donald Trump and his advisers appear set to push for substantial changes to the rules governing trade with Mexico and Canada, an effort that could prove difficult to negotiate and perilous to the regional economy.The president-elect vilified the agreement during the campaign and threatened to pull the U.S. out of the trade deal -- but only if Mexico doesn't agree to substantial modifications.Trump hasn't released a blueprint for his new vision of NAFTA, but his comments and those of his advisers suggest they want to make big changes. Among the likeliest would be special tariffs or other barriers to reduce the U.S. trade deficit with Mexico and new taxes that would hit American firms that have moved production there. His team may also seek to remove a NAFTA provision that allows Mexican and Canadian companies to challenge U.S. regulations outside the court system.Soon after he takes office, Trump is set to ask government officials to examine the ramifications of abandoning NAFTA, according to a transition-team memo, CNN reported. Longstanding disputes between the U.S. and its neighbors -- including country-of-origin labels for beef and Canada's softwood-lumber exports -- could be addressed in a revised NAFTA, according to the memo.The stakes are high. The U.S. imported and exported a total of $1.1 trillion in merchandise to and from Canada and Mexico last year, compared with about $700 billion with the European Union and $600 billion with China.Canada and Mexico are intertwined in a complex system of supply chains, with some components crossing borders more than once before the final product is sold to consumers. Breaking up NAFTA would upend numerous industries, and the biggest victim would be Mexico, which promotes itself as a platform offering global manufacturers duty-free access to the U.S.Mexican officials say they are willing to update the 22-year-old treaty, including adding new chapters on e-commerce and other aspects that didn't exist in the mid-1990s. Mexico would also sign on to any pledge to prevent currency manipulation given that it has a free-floating currency.But Mexican officials are wary of revisiting tariffs and export quotas."We can't get lost in an old debate about traditional tariffs ... that's a debate from the last century," Economy Minister Ildelfonso Guajardo told a business conference earlier this month. Reopening the treaty would create "a long line" of special interests in all three countries trying to get protection, he added.Jaime Serra, Mexico's trade minister when NAFTA was negotiated, said that steps like agreeing to voluntarily restrict exports should be off the table. Export quotas, he said, would be 'the beginning of pure protectionism, and it would be shooting both of our countries in the foot."Concluded in the George H.W. Bush administration and enacted with amendments under former President Bill Clinton, NAFTA eliminated tariffs among the North American countries over time and set rules of the road for investment, labor and the environment.Trump repeatedly warned of across-the-board, double-digit tariffs on imports from Mexico to reduce the trade deficit, which he links to the loss of manufacturing jobs. While Congress has given the president the ability to levy big emergency tariffs, they could eventually be challenged successfully at the World Trade Organization.Trump's brash warnings to trading partners may be just the opening bid in negotiations that could end with relatively low tariffs or other barriers to Mexican goods.Trump and his aides appear fixated on the U.S. trade deficit -- $61 billion last year with Mexico alone -- and ways it could be reduced.Some Democrats and labor groups have also embraced blunt measures to reduce the trade deficit. The House Democrats who led the opposition to President Barack Obama's Pacific trade agreement said they're willing to work with Trump on a more balanced trade policy.Rep. Brad Sherman (D., Calif.) suggests negotiating within the framework of NAFTA the option for Washington to impose special tariffs of up to 4% on Mexican goods to reduce the bilateral trade deficit to $25 billion, excluding oil and agricultural goods. "Good neighbors have balanced trade relationships," Sherman said.Besides traditional trade barriers, enforcement cases and tariffs, Trump and his advisers have discussed special taxes that could be levied on goods produced by U.S. companies that have moved production off shore.Among various tax plans, one supported by House Republicans would raise money off goods imported into the U.S., in a similar fashion to the value-added tax that affects American products sold abroad. The "destination-based cash-flow tax" could be challenged at the WTO, but Trump's advisers say they will use Washington's leverage at the Geneva-based trade body to change the treatment of VAT and other border-adjusted taxes.Some experts following Trump's trade plans say he is likely to negotiate removing some NAFTA provisions that have grown increasingly unpopular, such as an international arbitration system known as investor-state dispute settlement.The arbitration, codified in NAFTA's chapter 11, allows investors from one country to sue the government of another country and obtain compensation outside the traditional court system when their rights are violated or their property is seized.If Trump doesn't get what he wants in the talks, as president he has the authority to pull the U.S. out of NAFTA in a matter of months and could do so, perhaps warning about such a move in his first days in office, lawyers say. If the U.S. leaves NAFTA, then the two-decade-old agreement could be replaced with bilateral trade agreements, which Trump advisers say they prefer to multilateral tie-ups. 

Trump Restates Desire To Withdraw From TPP

(DTN) -- If there were any doubt, President-elect Donald Trump made it clear in a video released late Monday that he would withdraw from the Trans-Pacific Partnership in one of his first executive actions once taking office in January. In the 2-minute-and-37-second YouTube video, Trump said in his plan to restore wealth to America that he will drop out of the Trans-Pacific Partnership, cut regulations on energy, launch an immigration investigation and implement sweeping changes to lobbyist ethics regarding former federal officials. Trump said he was providing an update to the American people on the transition and his first 100 days in office. He called the transition process "smooth and efficient" before turning to some of his agenda items that he said would create wealth and jobs for American workers. "My agenda will be based on a simple core principle -- putting America first," Trump said. "Whether it's producing steel, building cars or curing disease, I want the next generation of production and innovation to happen right here on our great homeland, America." Trump said he has asked his transition team for a list of executive actions on the first day of office "to restore our laws and bring back our jobs -- it's about time." The first item on that agenda included issuing a notification of intent to withdraw from the Trans-Pacific Partnership, which Trump called "a potential disaster for our country." Instead, Trump said the U.S. would negotiate bilateral trade deals "that bring jobs and industry back onto American shores." TPP is a 12-country trade deal in the Pacific Rim that President Barack Obama's administration has touted would eliminate tariffs on more than 18,000 U.S. products. Canada, Mexico, Australia and Japan are all part of the trade pact, along with Vietnam, Singapore, Brunei, New Zealand, Chile and Peru. Most commodity and agricultural groups have aggressively supported the trade pact. Still, Trump made ending the TPP a major part of his populist campaign. On energy, Trump made it clear he would dial back regulatory restrictions on exploration or production of fossil fuels. By doing so, the president-elect indicated that unleashing such production would lead to millions of new jobs. Trump said he would cancel "job-killing restrictions on the production of American energy, including shale energy and clean coal, creating many millions of high-paying jobs. That's what we want. That's what we've been waiting for." Trump did not offer details about other regulatory changes except to say he would create a rule that says for every one new regulation, two old regulations must be eliminated. "So important," Trump said of the proposal. Tying infrastructure to national security, Trump said he asked the Department of Defense and chairman joint chiefs to create a plan to protect vital infrastructure from "cyberattacks and all other forms of attacks." Regarding immigration, Trump said his first action would be to direct the Department of Labor to investigate all abuses of visa programs that undercut the American worker. Trump's ethics reform agenda seemed to target and limit the job opportunities for outgoing Obama administration officials. Trump said that, "as part of our plan to drain the swamp, we will impose a five-year ban on executive officials becoming lobbyists after they leave the administration, and a lifetime ban on executive officials lobbying on behalf of a foreign government."   

TPP Countries Forging on Without or Without U.S.

At least six countries included in the Trans-Pacific Partnership aim to complete the trade deal with or without the United States. Reuters reports Mexico, Japan, Australia, Malaysia, New Zealand and Singapore are all pledging to continue forward with TPP if the United States does not. The six nations are among 12 signatories of the trade deal, which currently cannot take effect without being ratified by the United States. President-elect Donald Trump condemned the deal on the campaign trail, leaving its fate dim. However, Mexico's Economy Minister recently said: “We determined that our countries will press ahead with this agreement independently of what Washington decides.” The trade deal could be implemented without the U.S. if it meets strict GDP requirements

Conaway urges CFTC to Delay Controversial Rulemaking

House Agriculture Committee Chair Michael Conaway has sent the Commodity Futures Trading Commission a letter urging against "pushing through controversial regulations" before President Barack Obama leaves office. The Texas Republican wrote that: "While we may not agree on which regulations are overreaching or unnecessary, we should agree that the American people have asked for someone else to make that judgment." Pro Farmer’s First Thing Today reports specifically, Conaway requested that CFTC not move forward on position limits rulemaking and for the Commission to extend the comment period for Regulation Automated Trading

COOL Not on the Agenda for Trump

Country-of-Origin meat labeling will not be making a comeback under a Trump administration. Politico reports that Trump's Agriculture Advisory Committee was quick to mobilize and inform Trump’s transition team that such a policy — which has been litigated in both the U.S. court system and the World Trade Organization — is a non-starter for most farm groups. Leaked portions of Trump’s plan for his first 100 days in office highlighted a provision to potentially include COOL in a renegotiation of NAFTA. Farm groups from Canada threatened trade retaliation if COOL in the U.S. were to be reinstated. But a spokesperson for Trump's Agriculture Advisory Committee said no one knows how COOL got into the plan, adding COOL is “dead as a doornail.

California Egg Law Challenge Struck Down

A federal appeals court last week ruled against six states challenging a California law placing restrictions on egg sales from other states. The 2008 ballot initiative approved by California voters set strict requirements for housing egg-laying hens. The court ruled that the states—Missouri, Nebraska, Oklahoma, Alabama, Kentucky and Iowa—failed to show how the law would impact them and not just individual egg farmers, upholding a lower court decision that dismissed the lawsuit. However, Food Safety News reports that while the three-judge panel affirmed the dismissal, they did so in a way that does not close the door on the dispute between California and the other egg-producing states, paving the way for future lawsuits. The next possible step in the case is for Midwestern egg producers to file a lawsuit on their own.

Canada Confirms More Bovine TB cases

The Canadian Food Inspection Agency has confirmed five more cattle from southeastern Alberta have been infected with the bacteria that causes bovine tuberculosis. Ag Canada reports the five animals were discovered during the removal and destruction of the initial cow’s index herd. The source of infection is still unknown. The investigation follows a notice from the U.S. Department of Agriculture that a cow from Alberta had tested positive for the disease at a U.S. packing plant. While the index herd is the only herd so far to turn up infected cows, quarantines remain in place on approximately 34 farms in Alberta and two in southwestern Saskatchewan. All cattle from the index herd are in the process of being removed from the ranch and humanely destroyed.

Brexit May Open British Farmers to GM Crops

Great Brittain’s exit from the European Union may open the door for British farmers to grow genetically modified crops. British officials are drawing up plans that could allow GM crops in the future. Britain’s Agriculture Minister said: “The government's general view remains that policy and regulation in this area should be science-based.” Numerous scientific studies have shown the safety and benefits of GM crops, but are largely ignored across the EU. Only one type of genetically modified crop has ever been grown commercially in Europe. A UK farmer told the website Farming UK that exiting the EU means Britain is “open for business” when it comes to GM crops, adding “farmers would not choose to grow these unless they saw benefits.” 

House Passes Legislation to Curb 'Midnight Regulations'

A bill to curb all regulations issued in the final months of a president's term, often called midnight regulations, passed the House November 17 by a vote of 240-179, after all amendments offered by Democrats were defeated.The Midnight Rules Relief Act (HR 5982) was sponsored by Rep. Darrell Issa, R-Calif. It would amend the Congressional Review Act (CRA) to allow Congress to disapprove multiple regulations en bloc that had been issued in the last 60 legislative days of the final year of a president's term.Given the number of legislative days in the current Congress, all regulations finalized since May would be subject to disapproval."On Election Day, the American people delivered a resounding message to Washington: Do not continue the Obama administration's policies; stop the regulatory, big-government onslaught that has been killing our jobs, strangling recovery and suffocating our futures," said House Judiciary Committee Chairman Bob Goodlatte, R-Va. "Passage of this bill is the way to say immediately we have heard you loud and clear."The White House already said President Barack Obama would veto the bill if it were presented to him. Further, with few days remaining in the legislative session, the bill is unlikely to advance in the Senate. 

ASI Awarded MAP and FMD Funding

The U.S. Department of Agriculture's Foreign Agricultural Service announced the names of the more than 70 agricultural organizations that are recipients of the Fiscal Year 2017 funding for the Market Access Program and Foreign Market Development program. 

The American Sheep Industry Association has once again been granted funding through each of these programs. The awards include $482,594 for MAP and $135,250 for FMD. Additionally, ASI cooperates with the Quality Samples Program, which has been key in assisting new customers to try American wool. 

"This is extremely important funding for the U.S. wool industry as it continues to explore and maintain export markets. The programs are key to maintain the current customers and effective when investigating in markets that are either high-risk or developing," said Rita Kourlis Samuelson, ASI's director of wool marketing. 

The MAP program shares the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities. ASI uses this funding for projects such as top-combing and scouring trials, trade show participation, trade missions and reverse-trade missions. 

The FMD program focuses on trade servicing and trade capacity building by helping to create, expand and maintain long-term export markets for U.S. products. This supports other FAS programs, which enables the wool industry to provide samples of American wool. These samples help a foreign customer learn about U.S. wool and have been a key program in developing long-term customers who have purchased millions of pounds of American wool.  

MSGA To Celebrate 132 Years In December

December 7-9. Montana Stockgrowers Association (MSGA) will celebrate 132 years of serving the state’s ranchers with their Annual Convention & Trade Show. This year’s meetings at the Radisson Hotel in Billings will host a trade show, educational workshops, policy meetings, over $100,000 in prizes and live music.“It is time to make plans to attend the Annual Convention in Billings. Greet old friends and meet new ones while you work together to discuss important issues and set policy to guide your leadership for the 2017 legislative session,“ says MSGA President, Gene Curry from Valier.  “While there you will have opportunity to listen to informative speakers and educational programs. You will also have a chance to bid on a John Deere Gator, win a lease on a Massey tractor or drive home a new Ford truck!”NCBA President, Tracy Brunner will be the featured speaker during Thursday’s Opening General Session.A broad range of educational workshops will be offered during the Stockgrowers College. Speakers will touch on topics of vaccination programs, calf health and nutrition, calf management, antibiotic use, Grizzly Bear management, UAV’s in agriculture, DNA technology, livestock marketing, risk management and estate planning.Each night of Annual Convention will feature viewing of the NFR on the big screens. Thursday night will include the second NFR Calcutta at MSGA Annual Convention, benefiting the Montana Stockgrowers’ Foundation. Friday night will feature live music from Insufficient Funds Band.Friday’s Grand Finale Banquet will be highlighted by the annual live auction for Cattle Directory Priority Page advertisements. Over $100,000 in prizes will be awarded including a Ford F-250 Super Duty pickup and a Massey Ferguson tractor lease.Policy meetings will take place on Wednesday and Thursday of Annual Convention. Guest speakers will address a number of topics affecting Montana’s ranching communities during the past year and in months to come. They will set policy and priorities for the upcoming Legislative Session. A Trade Show with over 100 booth spaces will be open to the public Thursday and Friday from 10:00 a.m. to 8:00 p.m.A full meeting agenda, hotel information, details of policy meeting discussions and Stockgrowers College workshops is available on the MSGA website at www.mtbeef.org. Online and discounted registration closes Thursday, December 1. On-site registration will be available starting December 7. For more information, contact the Montana Stockgrowers Association at (406) 442-3420. 

Improve NAFTA, Don’t Withdraw From TPP

Ohio Republican Senator Rob Portman was the U.S. Trade Representative under George W. Bush, and he’s cautioning President-elect Donald Trump against walking away from the North American Free Trade Agreement. In an interview this week, he did say the pact between the United States, Canada, and Mexico could be improved. During the presidential campaign, Trump spoke more than once about withdrawing from the agreement if he won the Oval Office. In the interview, Portman also noted that there were several areas in the 23-year old agreement that could be improved for the U.S. In the meantime, with the Obama Administration no longer pursuing passage of the Trans-Pacific Partnership, attention is turning to President-elect Trump. Japanese Prime Minister Shinzo Abe urged Trump not to walk away from the deal, which can’t go into effect without American approval. Abe did say failure to move on TPP could shift trade focus to the Regional Comprehensive Economic Partnership, which is being led by China and doesn’t include the United States. 

Lawsuit against CA poultry cage rules rejected

Six states filed a lawsuit to stop California’s new poultry law that prohibits the sale of eggs from chickens that aren’t raised within strict space requirements. A federal appeals court says the states failed to show how the law would affect the states themselves rather than individual farmers. An Associated Press report says California voters approved a ballot measure back in 2008 that required the state’s egg-laying hens to spend their days with enough space to allow them to lie down, stand up, turn around, and fully extend their wings. In 2010, California legislators added to that law by banning the sale of any eggs from hens that weren’t raised within those standards. The Ninth U.S. Circuit Court of Appeals upheld a lower court ruling that dismissed the lawsuit. The six states involved in the suit were Iowa, Missouri, Nebraska, Oklahoma, Alabama, and Kentucky.

Farmland Prices May Drop 20 percent

The price of American farmland may be heading for its first significant drop since the mid-1980s. MetLife Agricultural Finance says that based on certain measurements, market conditions are the worst they’ve been since the Farm Crisis. Agri Money dot Com says land prices likely will fall 20 percent from the top end that was established early last year. MetLife, one of America’s largest ag mortgage lenders, said the slump will end sometime in 2018, blaming the pending downfall on low farm profits. MetLife expects corn and soybean prices to hit bottom next year, but the lower trend likely hangs on through most of 2017 because of record crop production this year. MetLife added lower cash incomes will lead to a reduction in inflation-adjusted farmland prices in 2018, the first significant correction since the ‘80s. Recent data shows farmland prices in Iowa, Illinois and Indiana dropping three percent from July-September of this year

One of Three Major U.S. Drought Areas Will Improve

The U.S. Drought Monitor shows roughly 11 percent of the contiguous United States is under what it calls “severe, extreme, or exceptional” drought. The areas where the drought continues to be in control include three different areas of the country. Rebecca Lindsey is the Managing Editor of Climate dot Gov, and she said one of the more prominent drought areas includes the southeast United States. That area has been in the news as wildfires have recently burned over 80,000 acres of land. Southern California has been suffering from a drought for the past five years and it continues today. Northern New England also has a good-sized portion of its land mired in a drought as well. As far as any potential relief goes in any of those areas, Lindsey said it’s on the way for only one of those three hot spots. “Of the country’s hardest-hit areas, only inland areas of New England are likely to improve throughout the month,” she says. “In the Southeast and Southern California, drought-stricken areas are likely to persist or worsen, and possibly expand.

Photosynthesis on Steroids

Scientists can now manipulate a plant’s genes to help it use sunlight more efficiently. It’s a breakthrough that could possibly lead to more food grown for an expanding world population. Photosynthesis is how a plant converts sunlight, carbon dioxide, and water into food. But the process is very inefficient, using only one percent of available energy. A plant’s protective system kicks in when there’s too much sunlight, allowing it to get rid of extra energy safely. Scientists genetically modified a part of that system and could increase leaf growth as much as 14 to 20 percent. An Associated Press article says the study was published this week in the journal Science.  Scientists aren’t turning the protective system off and on, they’re modifying the system to make the plant turn it on and off faster than normal. The study’s lead author, Stephen Long, says, “Now that we know it works, it wouldn’t be too hard to do it to other plants. If you look at other crops around the world, it would increase yields by many million tons of food.”

Conaway Open to Farm Bill Split

House Agriculture Committee Chair Mike Conaway hinted he would be open to splitting the Farm Bill ahead of the 2018 cycle. The Texas Republican said he is “committed to getting both sides of the Farm Bill extended on time” following a meeting examining the Supplemental Nutrition Assistance Program. Conaway says the process is to be determined but said “If it's together, great. If it's separate, great. Whichever is the easiest path,” when asked about farm bill negotiations in the next Congress. Politico says the controversial idea is opposed by many farm and anti-hunger groups. Before the election, Farm Bill talks were expected to start sometime in early 2017

Ousted Kansas Representative Wants Top USDA Post

Outgoing Kansas U.S. House Representative Tim Huelskamp (Hugh-els-camp), who lost his reelection bid in the Republican primary, says he was approached by President-elect Donald Trump’s transition team about becoming secretary of the Department of Agriculture. The Topeka Capital Journal reports the outspoken Republican says he sent his resume to Trump’s team, which he says reached out to him this week. Huelskamp holds a doctorate in agriculture policy from American University in Washington, D.C., where he graduated in 1995. However, he was kicked off the House Agriculture Committee in 2012 and lost his reelection bid in one of the largest agriculture-focused districts in the nation. Kansas farm groups endorsed his challenger, Roger Marshall, who now takes Huelskamp’s seat in the House. And former USDA Secretary Dan Glickman said he would be surprised if Huelskamp is chosen due to his “adversarial relationship with congressional leaders.” Glickman says: “You cannot have burned bridges,” adding “You have to work with Congress” as USDA Secretary

Mexico Loaded up on corn Ahead of U.S. Election

Pro Farmer reports that Mexico purchased 709,200 metric tons of U.S. corn the week prior to the U.S. elections, which was three times the average volume for the preceding month. Pro Farmer says the move proved prudent, since the results of the U.S. election sent the peso to an all-time low against the dollar, increasing corn prices in pesos ten-fold. Traders and industry analysts report that Mexican demand for U.S. grain imports has since slumped. However, they also stress that Mexico has few other options for grain besides the U.S. and it needs to import around 10 million metric tons or more of corn each year. Mexico is the number one buyer of U.S. corn and pork

Thanksgiving Dinner Ticks Down to Less Than $5 Per Person

The annual Thanksgiving dinner survey by the American Farm Bureau Federation shows the cost of Thanksgiving dinner is estimated at less than $5 per person. The average cost of classic items found at the Thanksgiving dinner table indicates the average cost of this year's feast for ten is $49.87, a 24-cent decrease from last year's average of $50.11. The big-ticket item—a 16-pound turkey—came in at a total of $22.74 this year. That's roughly $1.42 per pound, a decrease of two cents per pound, or a total of 30 cents per whole turkey, compared to 2015. The AFBF survey shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, pumpkin pie with whipped cream, and coffee and milk, all in quantities sufficient to serve a family of ten with plenty for leftovers

USDA, EPA Announce U.S. Food Loss and Waste 2030 Champions

Agriculture Secretary Tom Vilsack and Environmental Protection Agency Administrator Gina McCarthy Wednesday announced the inaugural class of Food Loss and Waste 2030 Champions. The Champions are U.S. businesses and organizations pledging concrete steps to reduce food loss and waste in their operations 50 percent by the year 2030. Champions announced Wednesday include Campbell Soup Company, Conagra Brands, General Mills and Walmart, just to name a few. USDA Secretary Vilsack said: “The founding 2030 Champions have shown exceptional leadership in the fight to reduce, recover and recycle food loss and waste.” The EPA estimates that more food reaches landfills and incinerators than any other single material in our everyday trash, about 21 percent of the waste stream. USDA and EPA both say that keeping food in our communities and out of landfills helps communities and the 42 million Americans that live in food insecure households.

Zoetis Genomic Testing Now Available Through Red Angus Association of America

Distribution agreement gives breeders access to enhanced genomic testing PARSIPPANY, N.J. (November 17, 2016)—Red Angus breeders are now able to order the Zoetis HD 50KTM and i50K™ genomic tests, as well as tests for parentage and genetic conditions for seedstock animals directly from the Red Angus Association of America (RAAA). Zoetis and the RAAA today announced a distribution agreement between the two organizations. The RAAA will process orders, execute billing, and submit samples on behalf of breeders to Zoetis for genotyping.  “We’re excited about the partnership with Zoetis and are looking forward to having them more involved in the Red Angus breed,” said Tom Brink, CEO, RAAA. “We want as many Red Angus cattle as possible to be genomically tested as to further grow our base population. This is good for all Red Angus breeders.” The agreement means a new process for Red Angus breeders to submit orders and DNA samples for testing directly to the RAAA, as well as new billing procedures and a new order form.
“This partnership between the RAAA and Zoetis is a collaboration for dependable member service, further advancement of Red Angus genetics, and ongoing opportunities for innovation in cattle breeding,” said Kent Andersen, Director of Genetics Technical Services, U.S. Cattle-Equine with Zoetis. “Zoetis is pleased to offer Red Angus breeders and commercial users of Red Angus genetics another means to get dependable genomic enhanced expected progeny differences (GE-EPDs) for the complete range traits to make more profitable selection, breeding and marketing decisions.” Red Angus breeders and their bull buyers can use GE-EPDs and parentage verification powered by i50K to help make more dependable breeding decisions involving young animals. This is especially beneficial for difficult, time-consuming and expensive to measure traits (i.e., direct and maternal calving ease, stayability, marbling). Early in life, more information about an animal’s genetic potential can be known than if that animal had 10 – 20 progeny, daughter and carcass records contributing to its traditional EPDs.1 Knowing more, sooner, about an animal’s genetic potential helps breeders make selection, mating and marketing decisions with greater efficiency. Early on, breeders can more dependably know, for example, if animals should be selected to enter the breeding herd as replacement females, further developed and marketed as open or bred females, used as donor females in embryo transfer or culled for feeding purposes. i50K also better guides decisions on whether bull calves should be performance tested and eventually sold as bulls for a variety of more clearly determined purposes, or castrated for feeding.   Zoetis i50K for Red Angus is available now. To learn more about i50K and how it can be used to help improve the accuracy, scope and profitability of breeding decisions – as well as ordering - contact a Zoetis or RAAA representative or visit www.i50K.com.

Crop Outlook and International Durum Forum Addresses Grower Challenges

Members of the U.S. durum industry met this week in Minot, ND, for the 2016 Crop Outlook and International Durum Forum. The annual event, hosted by the U.S. Durum Growers Association and the North Dakota Wheat Commission (NDWC), brings growers and members of the grain industry from across the United States together to hear from experts, participate in panel discussions and hold breakout sessions on some of the crop’s most pressing challenges. The event also provides a unique opportunity for producers, millers, grain trade and pasta manufacturers to interact and share information.

“Not only does the forum provide information on timely durum related topics, it also provides a platform for the industry and growers to discuss issues that affect the industry as a whole and work together toward common goals,” said NDWC Administrator Neal Fisher. ­“The connections made at this meeting every year are priceless and provide the necessary link from producer to processor to consumer.”

Many speakers focused their presentations on addressing vomitoxin (DON) levels. The northern plains durum crop is coming through a year of adverse environmental conditions that favored the development of Fusarium head blight or scab and challenged even the most vigilant of growers. North Dakota State University (NDSU) Plant Pathologist Dr. Andrew Friskop highlighted the environmental conditions necessary for scab development and recent field trials evaluating the effectiveness of various control methods. NDSU Food Safety Program Director Dr. Paul Schwarz shared a basic history of the fungal pathogen, including background on how current regulatory DON limits were established. Schwarz spends the majority of his research time working with barley and the brewing industry, which faces many of the same DON challenges as durum growers and end users. Brian Adams, from the Federal Grain Inspection Service (FGIS), spoke on DON testing, including efforts to ensure consistent test results across laboratories, methods and locations. FGIS is working on studies to evaluate variables in procedures, such as how the particle size of wheat after grinding for the DON test may affect results.

Though there seem to be no easy answers to reducing DON levels, particularly in years with wet, humid growing conditions during the flowering stage of the durum plant, a great deal of work continues to identify best practices for growers and using technology to find long-term solutions.

Also at the conference, USW Vice President of Policy Dalton Henry appeared on a panel titled “Current and Future Durum Policy” with National Association of Wheat Growers (NAWG) President Gordon Stoner and Ward County Farm Service Agency (FSA) Director Grant Buck. Henry highlighted USW’s work overseas and discussed export trends and the role that trade policy plays in facilitating exports of U.S. grown commodities. The panel answered questions about how best to adjust current U.S. farm policy to encourage durum production, possible trade priorities of the next U.S. administration and the need to continue improving market access for U.S. growers and their customers overseas. Other presentations included national pasta consumption trends and supply and demand outlooks for durum and hard red spring wheat.

The 2016 Crop Outlook and International Durum Forum is just one example of a number of meetings this season that involve growers in key discussions about the future of their industry.

Congress Back in Session, Look Ahead to 115th Congress

Following the elections, Congress came back into session this week and is starting to look ahead to the next Congress.  Republicans will maintain control of the both the Senate and House, and Majority Leader Mitch McConnell (R-KY) and House Speaker Paul Ryan (R-WI) will remain in their respective roles.  For the Democrats, the retirement of Minority Harry Reid (D-NV) meant that new leadership elections were held in the Senate; Senator Chuck Schumer (D-NY) was selected by the caucus to be the new Minority Leader.  In the House, the Democratic Caucus will not be holding elections until after the Thanksgiving holiday recess, but Minority Leader Nancy Pelosi (D-CA) has said that she is running to continue in her role.

There have been a number of leadership changes for some key Congressional Committees.  While the Republican and Democratic leadership of both the Senate and House Agriculture Committees will likely remain unchanged, there were some changes atop the Senate Appropriations Committee and the Senate Environment and Public Works (EPW) Committee, both of which have jurisdiction over key policies affecting agriculture.  For the Appropriations Committee, Senator Thad Cochran (R-MS) is expected to maintain the chairmanship; however, Ranking Member Barbara Mikulski (D-MD) is retiring from the Senate at the end of the Congress; Senator Patrick Leahy (D-VT), who is the most senior Democrat on the panel, will likely be the new Ranking Member.  Senator John Barrasso (R-WY) is expected to replace Senator James Inhofe (R-OK) as chairman of the EPW Committee and Senator Tom Carper (D-DE) would be the next Senator in line to be Ranking Member.  Many of these positions will be finalized in the coming weeks.

NAWG is also engaged with the FY 2017 Appropriations process.  The federal government is currently operating under a Continuing Resolution that expires on December 9, 2016.  It remains to be seen what sort of action Congress will take in terms of either another short-term CR or moving on a full omnibus appropriations bill.  This week, House Appropriations Committee Chairman Harold Rogers (R-KY) indicated that they would be working on another short-term Continuing Resolution through March 2017.  However, there haven’t yet been clear indications about the Senate’s preference. 

Washington Insider: Organic Rules Increasingly Controversial

More than two decades ago, Congress told USDA to set up a national organics program that would regulate and certify certain production processes to qualify products for an “organic” label.As you might expect, USDA set up advisory boards and committees and developed such a process. However, the agency is still in the business of deciding what should be allowed to be labeled and what should not. For example, certain biotech products were originally eligible, but that was changed after a storm of protest.USDA depends on recommendations of a 15 member Organic Standards Board that hammers out recommendations over which production methods are acceptably organic. The current Board is meeting this week, and at least one question on the agenda is “roiling the world of organic farming,” the New York Times says. It thinks that the answer could redefine “what it means to farm organically.”On one side are the growing number of big and small growers raising fruits and vegetables in hydroponic systems who argue that their production methods are not basically different from those of farmers who grow plants in dirt. They also think their approach makes organic farming more sustainable by, for instance, reducing water use.“Soil to me as a farmer means a nutrient-rich medium that contains biological processes, and that doesn’t have to be dirt,” Marianne Cufone, an aquaponic farmer and the executive director of the Recirculating Farms Coalition, which lobbies for aquaculture, told the Times.Not so, say many farmers who have spent years developing practices to draw nutrients from the soil. They argue that organic production is first and foremost about caring for the soil, which produces environmental benefits that go beyond growing plants.“Soil has always been the basis of organic production,” Steve Sprinkel, an organic farmer in Ojai, California told the Times. “...taking care of the soil is the bedrock of organic farming.”The answer will be important, because the market for organic products is large and growing, worth $40 billion last year the Times says. “Keeping up with the demand is difficult and expensive, and financiers and entrepreneurs, many of them from Silicon Valley, have started pouring money into these alternative systems.”“It’s like using an intravenous needle to administer exactly what we think the plant needs instead of allowing the plant to get what it needs in the amount it needs out of the ground,” Dan Barber, a chef in New York and author of “The Third Plate,” told the Times.In 2010, the Board recommended that hydroponic systems be ruled ineligible for organic certification because they excluded “the soil-plant ecology intrinsic to organic farming systems.” At that time, there were only 39 hydroponic growers with organic certification.USDA has not yet acted on the board’s recommendation, so organic certification of crops grown in hydroponic systems is continuing. The number of hydroponic growers with organic certification dropped to 30, but there were 22 certified aquaponic growers and 69 certified operations growing plants in containers lined with things like peat moss and coconut husks.So, once again USDA is caught in the middle. “The recommendation did not adequately address the diversity of practices and systems in the industry,” Miles McEvoy, the official who oversees the USDA’s organic program, said. USDA even assigned a task force to report on current practices, but that group split into two camps, mirroring the current debate, the Times says.Some 24 countries in Europe – including England, the Netherlands and Spain – as well as Mexico, Canada, Japan and New Zealand, do not allow organic certification for hydroponically grown produce.Colin Archipley’s farm, Archi’s Acres, grows kale, herbs and other produce hydroponically in greenhouses in San Diego. “The reason this has become such a big deal is that systems like ours are becoming more popular because they’re more efficient, which means farmers are more sustainable and profitable,” he told the Times. “That’s put competition on farmers, specifically in Vermont, and so what this really is about is market protection.”So, the issue continues to simmer and, once again and it will be interesting to see what the Board and USDA decide to do. Still, consumers may have a word in the outcome of the debate—especially, if hydroponic products are significantly cheaper to produce and their quality is high. The USDA Board’s deliberations should be watched closely as they proceed, Washington Insider believes. 

Trump Election Leaves Agriculture Awaiting Clarification on Issues

A new report from Rabobank says the election of Republican Donald Trump as President of the United States has the food and agriculture sector awaiting clarification on his policies and positions. The Rabobank Food and Agribusiness Research and Advisory group authored the report on the possible implications of the election. Rabobank analysts say Republican-controlled Executive and Legislative branches could “mean swift action when the new administration takes office.” Rabobank notes the advisory group is watching trade, labor and farm bill talks for potential policy changes that could have longer-term implications on the industry. The report says while President-elect Trump's policies are yet to be clearly defined, his statements during the campaign suggest drastic changes from current policy could be on the horizon. Finally, the report predicts agriculture markets may be impacted by foreign exchange volatility in the short term as Trump takes office in January.

New Zealand Wants to Talk Trade with Trump

New Zealand’s Prime Minister John Key wants to talk trade issues with U.S. President-elect Donald Trump. In a phone call between the two this week, Key told Trump he wished to talk further about trade and the Trans-Pacific Partnership. Key told Radio New Zealand that TPP was “worthy of a much fuller discussion,” adding that Trump needs the chance to get a proper assessment before seeing how “we can move things forward.” The Prime Minister said Trump was not rejecting the notion. New Zealand indicated the nation would give the new U.S. administration time to fully consider its trade agenda. That comes after New Zealand’s Parliament approved legislation last week allowing the nation to join TPP, despite the likelihood the trade deal will not proceed

Canada Cattle Producers urge Trade Fight if Trump Revives COOL

Cattle producers from Canada will urge the nation to retaliate against the United States, should U.S. President-Elect Donald Trump revive the U.S. Country-of-Origin meat labeling program (COOL). An internal memo within Trump’s transition team detailed how the new administration would immediately initiate changes to the North American Free Trade Agreement with Canada and Mexico, according to Reuters. That could include measures on COOL, which would reignite a six-year trade battle between the U.S. and Canada. U.S. lawmakers repealed COOL last December after the World Trade Organization approved more than $10 billion in trade retaliations by Canada. Canadian Cattlemen’s Association spokesperson John Masswohl says: “We’re watching, and if we think it discriminates against our cattle, our recommendation is going to be that tariffs go into place immediately.” However, he added that until it’s clear how Trump might approach COOL, no action is necessary.

Lawmakers Mixed on WRDA Lame-duck Changes

The 2016 Water Resources and Development Act (WRDA) may face an uphill climb during the lame-duck session of Congress as the House and Senate versions of the bill differ greatly. House and Senate staff members met this week to hash out differences between the two bills, but lawmakers are conflicted on whether or not a bill can pass. Politico reports Peter DeFazio of Massachusetts, the top Democrat on the House Transportation and Infrastructure Committee, gave a final bill long odds, saying, “I don’t think there’s going to be much legislating done in the next few weeks.” DeFazio opposed the House-passed version of the bill earlier this year after a provision to increase spending from the industry-funded Harbor Maintenance Trust Fund was dropped. Meanwhile, Senate Environment and Public Works Committee Chairman Jim Inhofe of Oklahoma reiterated that the Senate’s $220 million package for Flint, Michigan and other communities would have to be included for the deal to clear the Senate. Inhofe said he was still “optimistic there will be a deal” during the lame-duck session.

Senate Ag Committee Urges Obama to Press China on Biotech Approvals

The Senate Agriculture Committee penned a letter to President Obama this week urging him to press China to prioritize biotechnology approvals. The bipartisan letter contains 37 signatures, 16 of which are Senate Agriculture Committee members, and asks the President to urge China to move forward in deregulating products awaiting final approval. The letter says: “The Chinese government fails to remain transparent, science-based, and timely in its regulatory process,” impacting farmers and ranchers abilities to access critical markets in China. The letter also called on President Obama to eliminate trade barriers due to regulatory systems the lawmakers claim “don’t operate based on scientific assessments.”

Bayer Taking Steps to Fund Monsanto Acquisition

Dow Jones reports Bayer is taking steps to fund the company’s acquisition of Monsanto. Bayer announced this week the company has placed four billion euros—or the equivalent of $4.28 billion—in convertible notes in the first step for financing its $57 billion acquisition of Monsanto. Bayer said the notes would be converted into shares in November 2019, the first component of Bayer's plan to raise about $19 billion in equity to fund the acquisition of St Louis, Missouri-based Monsanto. Bayer expects the acquisition to close by the end of 2017 and plans to submit its application to regulatory authorities in the European Union in the first quarter of next year and to U.S. authorities by the end of this year.