Senators question USFS role in sage grouse review

Thirteen Democratic senators, including Oregon Sens. Ron Wyden and Jeff Merkley, are questioning what role the U.S. Forest Service played in the Trump administration’s recent decision to review protections for the greater sage grouse.

Thirteen Democratic senators, including Oregon Sens. Ron Wyden and Jeff Merkley, are questioning what role the U.S. Forest Service played in the Trump administration’s recent decision to review protections for the greater sage grouse.

In a letter sent Dec. 20 to USFS Chief Tony Tooke, the senators pose a list of 10 questions stemming from federal orders to review the 2015 sage grouse plans, which sought to keep the peculiar bird off the Endangered Species List.

Those plans, the senators argue, were the hard-won results of negotiations between farmers, ranchers, sportsmen, conservationists and government officials to preserve sage grouse habitat while balancing rural economies. On June 7, however, Secretary of the Interior Ryan Zinke issued an order to re-examine the plans to see if any provisions might hinder job creation and energy development.

Since then, the Forest Service has also announced its intent to prepare an environmental impact statement for multiple national forests and grasslands in Idaho, Montana, Nevada, Utah, Wyoming and Colorado, which the agency says may warrant changes in land management for the sage grouse.

The notice includes:

• Idaho and southwest Montana (Beaverhead-Deerlodge, Boise, Caribou-Targhee, Salmon-Challis and Sawtooth national forests, and Curlew National Grassland).

• Nevada (Humboldt-Toiyabe National Forest).

• Utah (Ashley, Dixie, Fishlake, Manti-La Sal and Uinta-Wasatch-Cache national forests).

• Wyoming and Colorado (Bridger-Teton and Medicine Bow-Routt national forests, and Thunder Basin National Grassland).

The deadline for public comment is Friday, Jan. 5, though the senators are asking the Forest Service to extend that period by at least 45 days to account for the acreage and stakeholders involved.

Sage grouse are found in 11 Western states, and are known for their elaborate courtship and mating rituals. The population was once estimated at 16 million birds, but has since dwindled to somewhere between 200,000 and 500,000. More than half the remaining habitat is on land managed by either the Forest Service or Bureau of Land Management.

In addition to Wyden and Merkley, the Dec. 20 letter was signed by Washington Sens. Maria Cantwell and Patty Murray; New Mexico Sens. Tom Udall and Martin Heinrich; Montana Sen. Jon Tester; Colorado Sen. Michael Bennet; Nevada Sen. Catherine Cortez Masto; California Sen. Dianne Feinstein; Michigan Sen. Debbie Stabenow; Maryland Sen. Chris Van Hollen; and Rhode Island Sen. Jack Reed. All are Democrats.

Among their questions, they ask how the Forest Service was involved in working with the Department of the Interior on its recommendation to review sage grouse plans, and if the agency held any meetings with local stakeholders.

They also ask why the USFS is considering changes when the BLM’s National Technical Team, the U.S. Fish and Wildlife Service’s Conservation Objectives Team, the U.S. Geological Survey’s Summary Report and the Western Association of Fish and Wildlife Agencies all agreed on key elements in the final 2015 sage grouse plans.

“Because of the profound economic and cultural implications of upending this range-wide solution — including a potential Endangered Species Act listing of the sage grouse that could result from USFS and BLM changes to the 2015 plans — we ask that you respond to the following questions and requests for information by Jan. 12, 2018,” the senators write.

A spokeswoman for the Forest Service in Washington, D.C. said they have received the letter and are working on a reply.

Capital Press

Wolf pack detected in foothills north of Boise

A pack of wolves has been detected in the Boise foothills area for the first time. There have been sporadic, lone wolf sightings in the area for years but Idaho Wildlife Services is now keeping an eye on the seven-wolf pack.

BOISE — Idaho Wildlife Services is keeping its eyes on a pack of seven wolves that has been detected recently in the foothills north of Boise.

News that a pack of wolves has been detected in that area was not welcomed by the state’s cattle industry.

There have been lone wolf sightings in the Boise foothills over the years but this is the first time a pack has been detected in the area.

IWS State Director Todd Grimm said seven different sets of wolf tracks have been found near Avimor Subdivision, which is located in the foothills north of Boise, by far the state’s largest urban area.

Wildlife Services is a USDA agency that solves conflicts between humans and animals.

Grimm said there have been no reported livestock depredations associated with the pack, “but there are cattle in that vicinity, as well as pets, so the possibility is certainly there for a conflict.”

Idaho Cattle Association Executive Vice President Cameron Mulrony said he has not heard of any problems associated with the pack from cattlemen in the region but the news is certainly not welcomed by them.

Just having wolves in the area can cause cattle to put on less weight and reduce their breed-back percentage, both of which can cost ranchers a significant amount of money, he said.

“Any time there is an additional predator around that can cause a hit on a rancher’s bottom line, that’s not great news,” Mulrony said.

Jennifer Struthers, a regional wolf biologist with the Idaho Department of Fish and Game, said there is typically one or two wolf sightings a year in the foothills area during the winter time, when elk and deer come down onto winter range.

Outside of those sporadic sightings, not much is known about the predators, she said.

“The wolves come down because the game come down,” Struthers said. “We get a few sightings most winters by the public or when we fly. Where they go in the spring and summer time, we really don’t know.”

Idaho Farm Bureau Federation Broadcast Services Manager Jake Putnam said local sheepherders reported a couple wolf sightings in March but no depredations were associated with the animals.

“It doesn’t come as a surprise to Idaho Farm Bureau that wolves are that close to the city,” he said. “There have been sightings of wolves there in years past, but this is the first time a pack has been reported and this is a concern to us.”

According to Wildlife Services, there have been seven confirmed wolf livestock depredations in Ada County since the predators were re-introduced to Idaho in the mid-1990s.

Those depredations have occurred higher up in the mountain areas, said IDFG spokesman Mike Keckler.

Capital Press

FSIS Official Counters Brazil Talk of Reopening US market to Brazil Beef

A Brazilian meat executive caused a stir Nov. 28 when he told Reuters that his company Minerva, SA is getting ready to resume exports of fresh beef to the U.S. as early as the first quarter of 2018.USDA officials, however, have dismissed the idea as “inaccurate” and stated again that they have never given a time frame for when the ban would be lifted. USDA suspended imports on June 22, when a government audit discovered food safety deficiencies in the wake of Brazil’s inspection scandal.In an interview Friday (Dec. 1), Carmen Rottenberg, USDA’s Food Safety and Inspection Service’s acting deputy undersecretary, told IEG Policy that USDA is still waiting for Brazilian authorities to provide information on how they’ve resolved concerns that caused the ban to be imposed in the first place.“Nothing has changed,” Rottenberg said. “The ball is really in Brazil’s court to provide us with information that we’ve requested. We have had back and forth with Brazil and they’ve provided us with some information and we’ve asked for additional information. But the notion that we’ve given them some sort of a timeline, is completely inaccurate.”According to Rottenberg, at this time it is not possible to estimate when the ban may be lifted, because even when Brazil provides the additional information, the agency will likely still have to conduct a verification audit.“There is a process here and we are following that process and basing our decision on science,” Rottenberg added.Rottenberg’s comments come in a response to a Nov. 28 report by Reuters, in which the CEO of Minerva SA, Fernando Galletti, indicated that the company expects to resume fresh beef imports to the United States in the first quarter of 2018.“This is the expectation we are hearing from the Agriculture Ministry,” Galletti said, according to Reuters.This is not the first time that Brazilian officials have given overly optimistic estimates about when the suspension would be lifted.

Report signals Trump to meet with petroleum interests on biofuels

President Donald Trump has agreed to meet and discuss U.S. biofuels policy with the U.S. refining industry and lawmakers related to those interests, according to a report by Reuters.The newswire quoted two sources familiar with the situation who asked not to be named. One source indicated Trump has been "briefed" on the situation and agreed to the meeting, with a session potentially to be the week of December 11 once a window of opportunity can be found.However, Politico is reporting the meeting will be with Sen. Ted Cruz, R-Texas, and will not include any petroleum/refining industry officials. Cruz has put a hold on the nomination of Bill Northey to be an undersecretary at USDA, saying his hold will last until he gets a meeting with the White House on biofuel policy.While this has set off considerable speculation that it could lead to reform of US biofuel policy, most contacts believe that is not likely to be the case.

Washington Insider: Work on Avoiding Government Shutdowns

The Senate passed a tax reform bill over the weekend, and Bloomberg is reporting that on Saturday, House Republicans already announced a plan to pass a two-week extension of federal government funding without Democratic votes to avoid a shutdown on Dec. 8.The legislation would push the next deadline to the Friday before Christmas, “giving House and Senate lawmakers time to knit together their respective tax-cutting bills into a single piece of legislation to present to President Donald Trump.”Representative Rodney Frelinghuysen, R-N.J., chairman of the House Appropriations Committee, told the press that this step is “necessary to ensure the programs and services that all Americans rely on are maintained and available to all.”Representative Richard Hudson, R-N.C., said earlier that that the leadership team planned to press rank-and-file members to vote for the funding extension without any extraneous provisions that could cause delays. A handful of conservatives, including Republican Reps. Scott Perry of Pennsylvania and Jim Jordan of Ohio, had said earlier that they wouldn’t vote for it.The short-term spending bill would still need support from some Democrats in the Senate, where 60 votes will be required to advance the measure and Republicans have only 52 members. But being able to get it through the House by relying just on the Republican majority removes some Democratic leverage to press to include other issues.The Dec. 8 deadline was set in September when the President agreed with Democratic leaders to fund the government and suspend the debt limit for three months. Bloomberg says that Republicans are betting that putting all their energy into a legislative win on tax cuts will convince enough of their own members to push the spending negotiation off.Following the Senate vote on Saturday, a conference committee will begin meeting in days to reconcile the two versions of the tax plan into a final bill that must be passed by both chambers before heading to the President for his signature.The strategy for the funding measure grew in part from the complicated coalition that Republican leaders have to build for their tax overhaul, Bloomberg said.As part of the negotiation to convince moderate Republican senators like Susan Collins of Maine to support the tax bill, Majority Leader Mitch McConnell, R-Ky., promised that a bipartisan proposal to stabilize health-insurance markets would be attached to must-pass legislation -- like a spending bill to avoid a government shutdown -- before the end of the year. Collins made the demand because the Senate tax bill would end the Obamacare mandate that individuals have health coverage, which is forecast to make insurance premiums rise.The leading health proposal, from Republican Lamar Alexander of Tennessee and Democrat Patty Murray of Washington, is unpopular in the House, and Speaker Paul Ryan, R-Wis., said as recently as November that he doesn’t support it. Attaching the bipartisan health-care bill to a stopgap spending bill would risk enraging conservatives.By creating another government shutdown deadline on Dec. 22, Senate leadership can still try to fulfill its promises to moderates by attaching the Lamar-Alexander legislation to a must-pass bill before the end of the year -- and hope by then the tax overhaul is already on the president’s desk.Another lingering contentious issue is the legal status of young immigrants brought to the US illegally as children. There’s support in both parties for legal protection that would allow so-called Dreamers to remain under certain conditions. The President earlier ended the Obama-era Deferred Action for Childhood Arrivals program and gave Congress until March to come up with a fix.Democrats and some Republicans, including Sen. Jeff Flake, R-Ariz., and Florida Representative Carlos Curbelo, R-Fla., demand a solution before the end of the year.Curbelo said he would vote for a short-term spending bill that lasts until Dec. 22, but “I would not support funding the government beyond Dec. 31 unless we have a solution for DACA,” he said on Friday.Also, appropriators probably won’t have time to finish their package of actual spending bills before Dec. 22, because Republican and Democratic leaders still haven’t agreed on top-line spending levels.That means the legislation to avert a government shutdown on Dec. 22 will probably have to be another stopgap measure lasting until at least sometime in January, Bloomberg said.Still, even with remarkable Republican unity on the tax overhaul buying some goodwill, there are Republican House members who resent being forced to perform the most basic function of Congress -- funding the government -- via a series of short-term crisis-avoidance bills. Several Freedom Caucus member point to a “whole host of concerns” about the strategy to fund the government for just two weeks, “I don’t know if it’s a failure of leadership,” a caucus member told Bloomberg, “But it seems to me to be a failure of vision.”So, while Saturday’s tax bill deal may end one battle, there are several more on many issues, including spending and trade, that can be expected to cause major angst, and which producer s should watch closely as they proceed, Washington Insider believes. 

NAFTA May be Nearing Breaking Point

Forbes speculates that the North American Free Trade Agreement negotiations may be reaching a breaking point. Little progress has been made in previous talks as the U.S. continues to push a hardline stance that the governments of Canada and Mexico aren't going to accept. Last week, a government official from Mexico left a meeting with the Trump Administration with a negative outlook. In a separate statement, U.S. Trade Representative Robert Lighthizer says he is “concerned about the lack of headway.” Lighthizer says that so far, there is no evidence that Canada or Mexico are “willing to seriously engage on provisions that will lead to a rebalanced agreement.” Forbes says that Trump's team appears to be threatening to be ready to cancel NAFTA if serious concessions aren't made. Mexico and Canada, however, are willing to stall and wait for Congress and U.S. business chambers to increase the pressure on the Trump administration to preserve the current framework.

USGC, NCGA Reiterate Support for KORUS, NAFTA

Leadership from the U.S. Grains Council and National Corn Growers Association last week spent time in South Korea and Mexico to talk trade. The two organizations met with customers and government officials during what they call a period of policy uncertainty in the U.S. corn industry’s top markets. Mexico is the top purchaser of U.S. corn, while South Korea is ranked third. The joint delegation in South Korea emphasized the success of the U.S.-Korea Free Trade agreement for U.S. exports of feed grains and co-products. A second group traveled to Mexico and met with the major grain associations representing the top buyers of U.S. grain products, among others. NCGA President Kevin Skunes warns the loss of market access to South Korea and Mexico “would have immediate and far-reaching impacts on farm economics across the United States," if negotiations to rework trade agreements fail.

Perdue Predicts Strong 2018 Exports

Agriculture Secretary Sonny Perdue predicts fiscal year 2018 farm exports will remain strong. Responding to the Department of Agriculture’s export forecast published last week, Perdue says “exports continue to be a major driver of the rural economy,” mentioning that exports generate 20 percent of U.S. farm income. The USDA forecast predicts farm exports for the 2018 fiscal year will reach a value of $140 billion, which would be the fourth-best year in history. Fiscal year 2017 closed with the third-highest export total on record. Perdue also noted that agriculture’s trade surplus is expected to grow eight percent, from $21.3 billion last year to $23 billion in 2018. Perdue says USDA continues to work “around the clock” to boost export prospects “not only by expanding existing markets and improving existing trade agreements, but also by aggressively pursuing new markets and new opportunities.”

Grain Elevator Profit Margins Could Increase in 2018

A new report from CoBank says 2018 could bring an increase in profit margins for grain elevators. The report cites a weak harvest basis, along with low transportation rates, and other issues for the prospect of improved profit margins. A CoBank researcher also says a large carryover and another huge crop have “created an attractive carry in futures markets, particularly for wheat,” adding that current market conditions will provide elevators with better returns year-over-year if they are able to purchase the grain. U.S. ending stocks for corn and soybeans in 2018 are currently estimated to be the largest since 1987 and 2006, but stocks-to-use ratios remain manageable. However, the supply situation for wheat remains more burdensome, with large stocks expected to continue to weigh on the market in the coming year. The report says that because of the large supplies, localized storage shortages have developed in the Western Corn Belt, especially Nebraska, Iowa and Kansas.

Idaho Will Consider Ag Education Requirement for High School Students

A high school senior will propose a bill to Idaho lawmakers that would require high school students to complete at least two agriculture education classes. The bill will be introduced in the 2018 Idaho legislative session by 17-year-old Anna Peterson, an FFA member from Nampa, Idaho, according to the Capitol Press. Peterson says the legislation would mean that every high school student in the state would “emerge from those classes with at least a basic understanding of the farming and ranching industry and where their food comes from.” Peterson says she wants the classes to cover animal and plant science as well as agriculture's importance to Idaho's economy and teach students about some of the many career opportunities involved with the industry.

General Mills Contributes to National Wheat Foundation

General Mills has sent a contribution of $735,000 to the National Wheat Foundation. The funds are earmarked for the foundation to work with the Soul Health Partnership to advance adoption and implementation of soil health practices. The funds, equally distributed over the next three years, will be used to conduct soil health research on wheat farms and education outreach to more than 125,000 wheat farmers across the Northern and Southern Plains. The contribution brings General Mills' recent financial commitments to nearly $3 million for promoting the expanded adoption of soil health practices. As part of the agreement, General Mills has partnered with the Soil Health Partnership and the National Wheat Foundation to provide on-farm mentorship for the farm operators. Farmers, their agronomists, and Soil Health Partnership Field Managers will train new and existing farm staff in advanced nutrient management and tillage methods. 

USDA PUBLISHES SCHOOL MEALS RULE, EXPANDS OPTIONS, EASES CHALLENGES

WASHINGTON, Nov. 29, 2017 – The U.S. Department of Agriculture (USDA) today provided local food service professionals the flexibility they need to serve wholesome, nutritious, and tasty meals in schools across the nation. The new School Meal Flexibility Rule, published today, makes targeted changes to standards for meals provided under USDA’s National School Lunch and School Breakfast Programs, and asks customers to share their thoughts on those changes with the Department.U.S. Secretary of Agriculture Sonny Perdue said the rule reflects USDA’s commitment, made in a May proclamation (PDF, 123 KB), to work with program operators, school nutrition professionals, industry, and other stakeholders to develop forward-thinking strategies to ensure school nutrition standards are both healthful and practical.“Schools need flexibility in menu planning so they can serve nutritious and appealing meals,” Perdue said. “Based on the feedback we’ve gotten from students, schools, and food service professionals in local schools across America, it’s clear that many still face challenges incorporating some of the meal pattern requirements. Schools want to offer food that students actually want to eat. It doesn’t do any good to serve nutritious meals if they wind up in the trash can. These flexibilities give schools the local control they need to provide nutritious meals that school children find appetizing.”This action reflects a key initiative of USDA’s Regulatory Reform Agenda, developed in response to the President’s Executive Order to alleviate unnecessary regulatory burdens. Other USDA initiatives of this kind will be reflected in the forthcoming Fall 2017 Unified Agenda of Federal Regulatory and Deregulatory Actions.The interim final rule published today gives schools the option to serve low-fat (1 percent) flavored milk. Currently, schools are permitted to serve low-fat and non-fat unflavored milk as well as non-fat flavored milk. The rule also would provide this milk flexibility to the Special Milk Program and Child and Adult Care Food Program operators serving children ages 6 and older. States will also be allowed to grant exemptions to schools experiencing hardship in obtaining whole grain-rich products acceptable to students during School Year (SY) 2018-2019.Schools and industry also need more time to reduce sodium levels in school meals, Perdue said. So instead of further restricting sodium levels for SY 2018-2019, schools that meet the current – “Target 1” – limit will be considered compliant with USDA’s sodium requirements. Perdue again lauded the efforts of school food professionals in serving healthful, appealing meals and underscored USDA’s commitment to helping them overcome remaining challenges they face in meeting the nutrition standards.“We salute the efforts of America’s school food professionals,” Perdue said. “And we will continue to support them as they work to run successful school meals programs and feed our nation’s children.”This rule will be in effect for SY 2018-2019. USDA will accept public comments on these flexibilities via www.regulations.govto inform the development of a final rule, which will address the availability of these three flexibilities in the long term.USDA’s Food and Nutrition Service administers 15 nutrition assistance programs that include the National School Lunch Program, School Breakfast Program, Supplemental Nutrition Assistance Program, Special Supplemental Nutrition Program for Women, Infants and Children (WIC), and the Summer Food Service Program. Together, these programs comprise America’s nutrition safety net. For more information, visit www.fns.usda.gov. 

Cattlemen Respond to National Monument Reductions: "Egregious Example of Federal Overreach Corrected in Win for Rural Communities"

(SALT LAKE CITY – December 3, 2017) – The National Cattlemen’s Beef Association and Public Lands Council applauded the White House’s plan to reduce the Bears Ears and Grand Staircase-Escalante National Monuments. The decision – which follows an extensive review of monument designations by the Department of Interior – is a clear win for rural communities who have suffered the consequences of egregious federal overreach.

“Previous administrations abused the power of the Antiquities Act, designating huge swaths of land as national monuments without any public input or review,” said Dave Eliason, president of the Public Lands Council. “Rural communities in Utah and across the West have paid the price. Sweeping designations locked up millions of acres of land with the stroke of a pen, undermining local knowledge and decimating rural economies.”

The President’s decision means that traditional uses of the land, including livestock grazing, will be restored on public land in Utah.

“We are grateful that today’s action will allow ranchers to resume their role as responsible stewards of the land and drivers of rural economies,” said Craig Uden, president of the National Cattlemen’s Beef Association. “Going forward, it is critical that we reform the Antiquities Act to ensure that those whose livelihoods and communities depend on the land have a voice in federal land management decisions.”

Ranchers who hold grazing permits on public land do vital work that benefits public land including the improvement of water sources, conservation of wildlife habitat, and maintenance of the open space that Americans enjoy. Limitless power to make massive designations under the Antiquities Act poses a serious threat to that noble mission and rich heritage.

Washington Insider: US and Europe in New China Fight

Much of the world is focused on the administration’s tax proposals just now, and these are certainly the economic and political headliners. However, another battle deserves attention, the New York Times says. It is reporting that the United States has filed arguments to the World Trade Organization in a looming dispute over China’s future role, and says that the outcome of this fight could shape the global trading system for decades to come.The Times said that senior United States officials reported on Wednesday that they had filed a brief to the WTO as a third party in a case that China has brought against the European Union. The brief argues that China does not deserve the designation of a “market economy,” a distinction that would entitle it to preferential economic treatment under the WTO.However, the move is likely to ratchet up trade tensions with China, which the White House has called one of the world’s biggest trade offenders. And if China is awarded the designation against the wishes of the United States, it could test the Trump administration’s willingness to remain in the WTO, an international body for establishing trade rules and settling disputes. The administration has previously called the organization a “disaster.”China is now classified as a nonmarket economy, which allows the United States and other countries to use a special framework to decide whether it is “dumping” its products in other countries at unfairly low prices. This framework allows the United States to add an extra duty on some Chinese products.China argues that the United States and other WTO members promised to award it the market economy label in 2016, the 15th anniversary of its accession to the WTO. But the United States and the European Union are opposing that, claiming that China has failed to hold up its end of the bargain by curtailing the state’s role in the economy. United States officials say the Chinese government’s heavy hand distorts costs and prices in the country and harms competitors abroad.Last December, China challenged both the European Union and the United States at the WTO, saying that it was merely protecting its lawful rights. The case with the EU is proceeding and could serve as precedent in China’s challenge against the United States, which a WTO panel will consider next.If China succeeds in this case, that would weaken the ability of European and American officials to levy anti-dumping duties against it. It could also strengthen the resolve among top Trump administration officials in their claims that the WTO has been ineffective in defending the interests of Americans abroad — and perhaps lead to the organization’s demise altogether.Those officials include Robert Lighthizer, the United States trade representative, who in his confirmation hearing before the Senate in June described China’s challenge against Europe and the United States as “the most serious litigation matter we have at the WTO right now.”Lighthizer said that he had “made it very clear that a bad decision” on China’s status “would be cataclysmic for the WTO” Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics, said Lighthizer’s statements called into question whether the United States was looking for a reason to withdraw from the WTO.The WTO and its predecessor, the General Agreement on Tariffs and Trade, have been led for decades by the United States and other relatively developed and open economies. As other countries joined, the presumption was always that they were seeking to become more market-driven economies like the United States.But the rise of China has called this into question. Since beginning to open up to world trade in the 1980s, China has maintained an economy that melds market capitalism with state control. Some analysts argue that the state has taken a bigger role in the economy in the last few years, under the leadership of President Xi Jinping.The Trump administration has identified recalibrating trade with China as one of its defining challenges. The president repeatedly referenced China on the campaign trail, and his message that cheap Chinese imports decimated American manufacturing resonated with voters.The Trump administration says it is preparing a range of trade actions that could affect China, including investigations into imports of steel and aluminum, as well as China’s violations of intellectual property.Members of Congress on both sides of the aisle have proposed tighter restrictions on Chinese purchases of American companies and technology.On Wednesday, United States officials said that China’s behavior violated the language of the agreement China signed when it joined the WTO 15 years ago, as well as the text of the WTO’s precursor, the General Agreement on Tariffs and Trade, which calls for using market-determined prices in calculations.Clearly, this effort will be extremely important to the WTO, and to U.S. trading partners. The extent to which China’s support for state-owned enterprises can be limited is singularly important to U.S. producers and should be watched closely as the WTO processes unfold, Washington Insider believes. 

Nearly $1 Billion of Administration's Disaster Request For USDA

Almost $1 billion out of the $44 billion in disaster aid requested by the Trump administration would be earmarked for USDA, with around $465 million for the Farm Service Agency (FSA) and $500 million for the Natural Resources Conservation Service (NRCS).Of the amount for FSA, around $375 million would be for the Emergency Conservation Program, $50 million for the Emergency Forest Restoration Program and $40 million for Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish program, according to USDA acting deputy undersecretary for farm production and conservation Rob Johannson told House appropriators. 

Ethanol Applauds EPA RVO Announcement, Biodiesel Disappointed

The Environmental Protection Agency Thursday finalized a rule that establishes the required renewable fuel volumes under the Renewable Fuels Standard program for 2018, and biomass-based diesel for 2019. The agency set a total renewable fuel blending obligation of 19.29 billion gallons next year, maintaining the statutory requirement of 15 billion gallons of conventional biofuel such as corn-based ethanol and 4.29 billion gallons of advanced biofuel, including 288 million gallons of cellulosic biofuel, a slight increase from earlier proposals. The 2019 biodiesel amount is set for 2.1 billion gallons. American Coalition for Ethanol CEO Brian Jennings says, “ACE members are very pleased” that EPA set the RVO for ethanol at the statutory level of 15-billion gallons, as other industry groups applauded the announcement. However, the National Biodiesel Board noted that the EPA recommended only 4.29 billion gallons of advanced biofuels and 2.1 billion gallons of biomass-based diesel, a reduction and a flatline, respectively, from last year. Doug Whitehead of the National Biodiesel Board says: “EPA Administrator Scott Pruitt has disappointed the biodiesel industry for failing to respond to our repeated calls for growth.”

Ontario Proposes 10 Percent Ethanol Mandate

The government of Ontario is proposing changes to biofuels regulations, including increasing the current five percent ethanol mandate to ten percent in 2020. Advanced Biofuels Canada notes that a 10 percent ethanol mandate is likely to see sales of E15 and higher blends to meet the new average. The organization says the proposal will create expanded job and growth opportunities for Ontario’s agricultural, forestry, and waste sectors. Growth Energy CEO Emily Skor says if finalized, the proposal will be “a win for Canadian consumers.” In March, Growth Energy filed comments to Canada’s Ministry of the Environment and Climate Change, focusing on including ethanol in the development of Ontario’s fuel standard. The comments claimed that the easiest way to reduce greenhouse gas and other harmful emissions is to increase ethanol blended gasoline at a minimum of ten percent.

South Korea To Hold KORUS Public Hearing

South Korea will hold a second public meeting regarding the U.S.-Korea Free Trade Agreement, known as KORUS. The meeting was announced after the first public meeting was disrupted by angry farmers and livestock breeders, according to the Korea Herald, a Korea-based newspaper. The second public hearing taking place Friday (today) allows Policymakers, trade experts and citizens to take part in the talks to discuss issues related to the five-year-old deal. Farmers criticized the November 10th hearing, claiming the gathering did not reflect the damage they had suffered. In the earlier hearing, the ministry unveiled an economic feasibility study that claimed a possible amendment to the KORUS FTA is not likely to have a visible impact on the South Korean economy because the two countries have already scrapped tariffs in many sectors. The study didn't disclose detailed figures on each sector due to worries it would reveal South Korea's strategies before entering full-fledged renegotiations with the US.

Crawford Renews Calls to Open Ag Trade with Cuba

Arkansas Representative Rick Crawford is renewing his call to open agricultural trade with Cuba. The Republican says his proposal is an alternative to repealing the Cuban trade embargo, allowing the U.S. to tap into Cuba’s $2 billion agricultural market, according to Politico. Crawford first proposed the bill in January that would cut back restrictions on U.S. financing for agriculture exports, allowing Cubans to purchase U.S. products with credit. Current law allows U.S. producers to legally export agricultural products, but they must be paid in cash and cannot offer credit. The bill is backed by a bipartisan group of 62 lawmakers, along with companion legislation in the Senate sponsored by North Dakota Democrat Heidi Heitkamp and Arkansas Republican John Boozman. Cuba currently imports largely from China, Spain, Brazil and Canada. 

EPA is proposing to delay the effective date of the 2015 rule defining waters of the United States WOTUS

The Environmental Protection Agency (EPA) is proposing to delay the effective date of the 2015 rule defining waters of the United States (WOTUS) until two years after the regulation is finalized and published in the Federal Register.Implementation of the 2015 WOTUS rule, which re-defines the scope of federal jurisdiction under the Clean Water Act, is on hold due to a federal circuit court stay and the Supreme Court’s pending decision on whether the court of appeals has jurisdiction to review challenges to the rule. The Supreme Court held oral arguments Oct. 11, 2017, and could issue a decision resolving the appeals court jurisdiction question anytime, EPA said.Concurrent with the court review, EPA said it is engaged in a two-step rulemaking process to reconsider the WOTUS rule. The first step proposes to rescind the definition of “waters of the United States” and re-codify the previous definition. In step two, EPA and the U.S. Army Corp of Engineers are working to “substantively reconsider” the definition of waters of the United States, EPA said.A two-year extension of the effective date of the WOTUS rule would ensure that the scope of CWA jurisdiction will be administered as it is now and that there is sufficient time for reconsidering the definition of WOTUS in the regulatory process, the agency said.The proposed rule amending the effective date was published in the Federal Register last week, and the public comment period closes on Dec. 13, 2017. 

Trump Administration Self-Initiates Aluminum Investigations

The Trump administration launched a pair of investigations that could lead to import duties of aluminum sheet valued at more than $600 million, the first time in at least 25 years a U.S. administration has "self-initiated" an antidumping or countervailing duty case.While working with the aluminum industry to develop the case, Ross said Commerce is initiating the investigations, which could take up to a year. Then, the U.S. International Trade Commission will have to determine if U.S. producers have been materially injured or threatened with material injury by the imports."In this case, available evidence indicates that Chinese producers are selling aluminum sheet in the United States at prices that are less than fair value and that the Chinese government is providing unfair subsidies to producers of aluminum sheet," Commerce Secretary Wilbur Ross said. The efforts announced Tuesday are in addition to two other investigations – one on aluminum imports from China and a broader Section 232 probe.

Canada Heads to WTO over Softwood Lumber Import Duties Proposed By US

Canada has requested consultation at the WTO with the U.S. over import duties imposed by the U.S. on softwood lumber from Canada."We are reviewing the consultations request," U.S. Trade Representative spokeswoman Amelia Breinig said in a statement. "We are confident that the Department of Commerce's determinations fully comply with WTO rules." She noted the action by Canada is "premature" since the duties are not in place yet and are awaiting a final injury determination by the U.S. International Trade Commission December 18.The proposed anti-subsidy duties range from 3.2% to 8.89%, and countervailing duties range from 3.34% to 18.19%.

Washington Insider: War Over Tax Proposal Details

The fog of the political budget war continues to thicken, the Washington Post reported Wednesday. It said that “outside groups on the right are furiously mobilizing against an agreement that Republican leaders made with Bob Corker, R-Tenn., yesterday to get the tax bill through the Senate Budget Committee.”Apparently, Corker negotiated a deal in September that the tax cuts “cannot increase the national debt by more than $1.5 trillion over the next 10 years.” But, now he’s concerned about various gimmicks and overly rosy assumptions in the bill “that would almost certainly mean the true impact on the debt is far greater than that.”So, the retiring senator has been pushing in recent days to include a “trigger” that would automatically increase taxes down the road if the bill fails to generate the level of economic growth that Republicans leaders keep publicly predicting. This, it seems, has led to all sorts of angst.In addition, the Post says “it’s not clear what exactly GOP leaders promised Corker, who declined to share specifics with reporters.” He said the amendment will be included in an updated version of the bill that is likely to be released publicly on Thursday.This has led to something of a political explosion. The constellation of groups funded by the billionaire industrialist Koch brothers – including Americans for Prosperity and Freedom Partners – came out strongly against any trigger Wednesday last night, and were joined by Grover Norquist from Americans for Tax Reform, the Wall Street Journal editorial board and the U.S. Chamber of Commerce.These groups argue that such a trigger would likely increase taxes during an economic downturn—with strong negative impacts, and which they fear would cause stagnation. They also complain that it would inject even more uncertainty into the tax system, which would make it harder for businesses to plan their long-term investments.Corker asked President Trump about a trigger during a private lunch Wednesday for Senate Republicans—and, the president replied that he does not like the idea “but will accept it if that’s the only way a bill can pass,” the Post said. “There’s agreement in principle, very strong agreement, with Sen. McConnell, R-Ky., with the Finance Committee — and of course the White House has been in the midst of all this, too — but the agreement was made with McConnell and the Finance Committee leadership,” Corker said later in the day.In addition to Corker, the compromise is being crafted to win over other on-the-fence Republicans like Sens. James Lankford of Oklahoma, Jeff Flake of Arizona and Jerry Moran Kansas.With no Democrat planning to vote for the measure, Republicans can only afford two defections when they bring the bill up later this week for a vote on the floor.This new flash point in the delicate negotiations draws attention to the deeper identity crisis for the GOP in the Age of Trump, The Post says. For example, the President, who has declared bankruptcy several times, has made clear that he’s not a fiscal conservative. And Congressional Republicans, when they last had unified control of the federal government under George W. Bush, spent heavily, as vice president, Dick Cheney reportedly declared that Ronald “Reagan proved deficits don’t matter.”The tea party movement that emerged after Republicans lost power during the 2008 financial crisis put a heavy emphasis on tackling the debt, and conservatives running for office chastised the establishment GOP for its lack of fiscal restraint. Many current members of Congress got elected promising they wouldn’t repeat those same mistakes.But once they got power over the purse strings, especially after President Trump took over their party, the tone of most elected Republicans changed once again, The Post says. Meanwhile, the national debt exceeded $20 trillion for the first time ever this fall.Despite this rift, The Post says, the sense in the Capitol now is that there is real momentum toward getting this done. Sen. Susan Collins R-Maine, appeared ready to fall in line after a private meeting with the President yesterday.Still, a challenge remains for Senate GOP leaders, who have two holdout members who want to make the tax cuts more generous, but another half dozen or so Republicans who are still uneasy about potential additions to the debt. These contradictory demands complicate negotiations and will force Senator McConnell to decide who he needs to placate most.It’s not clear for example that he’ll be able to win over Sen. Ron Johnson, R-Wis., who wants to give “pass-through” businesses the same benefits as large corporations—which would increase the cost of the bill by more than $100 billion. Sen. Steve Daines, R-Mont., also wants this change, but he may agree to vote for the bill with a compromise that costs less.So, we will see. Everybody hates taxes and loves tax breaks, but some also really, really hate debt. This will mean still more hard, complicated choices that should be watched closely as the debate proceeds, Washington Insider believes.

Cash receipts in the livestock sector are forecast to grow 7.6%

OMAHA (DTN) -- Cash receipts in the livestock sector are forecast to grow 7.6% for all of 2017 while receipts for crop producers are projected to fall 2%, according to USDA's latest farm income forecast released Wednesday.Overall, net farm income is stabilizing and expected to provide a small bump in 2017 to $63.2 billion, or a 2.7% increase over 2016 numbers. The increase in the overall farm sector comes after three consecutive years of declines.Still, when factoring in inflation, the net farm income -- a broad measure of farm profits -- is relatively unchanged from a year ago.The farm income figures released Wednesday show a slightly better picture looking at "net cash farm income." That measure increased $3.7 billion, or 3.9%, to $96.9 billion. Taking inflation adjustments into account, net cash farm income rose 2.1%.USDA designates "net cash farm income" as a measure counting cash receipts from sales of crop inventories at the beginning of the year. The net cash farm income counts those as current-year income. The "net farm income" measure counts the sales of those beginning-of-the-year inventories as part of prior-year income.Even though both income measures are rising, net farm income in 2017 is still below all years from 2009 to 2015, and net cash farm income is lower in 2017 than the stretch of years from 2011 to 2015.The median household income for farms in 2017 is $77,551, showing an increase of 1.7% for the year after falling 6% in 2015 and remaining flat last year. That was largely due to a 2.3% increase in off-farm income to an average of $67,973 for 2017. Median farm income remains in negative territory at -$1,093 as more than half of farms lost income on their farm operations.While income remained low, comparatively, from seven or eight years ago, farm asset values increased by $81.1 billion, or 2.7%, to $3 trillion in 2017. Farm debt rose 2.9% to $385.2 billion. Nationally, farm equity, a measure of assets to debt, is up $70.1 billion, or 2.7%, to $2.65 trillion in 2017. The increase in assets is attributed to a 3.3% increase in the value of farm real estate. Subsequently, the rise in farm debt is also tied to higher farm real-estate debt.All cash receipts in agriculture are projected at $365.1 billion for 2017, an $8.6 billion increase, or 2.4% higher than 2017. The main driver for higher cash receipts was a $12.4 billion bump in revenue from the livestock sectors. Dairy, poultry-eggs, hogs and cattle receipts all increased in 2017, USDA stated. That was reflected in both price and volumes sold.Cash receipts for crops fell for crops by $3.8 billion, or 2%, to $189.9 billion. The main drivers were declines in receipts for soybeans, as well as the fruit and nut sectors.Despite declines in crop cash receipts, farm program payments are projected to decline $1.8 billion as well, to $11.2 billion, as large declines in Agricultural Risk Coverage (ARC) payments more than offset increases in Price Loss Coverage (PLC) payments, USDA stated.Total production expenses for agriculture are up 1.5% after two years of declines to $355.8 billion. Higher costs were led by higher interest costs, hired labor and fuels-oil. USDA saw declines in prices for feed and fertilizer expenses. 

Montana Farm Bureau submits comments on Sage Grouse Land Management Plan

The Montana Farm Bureau has submitted comments to the Department of the Interior regarding the Bureau of Land Management’s Greater Sage Grouse Land Management Plan. The state’s largest agricultural organization encouraged the DOI to make several improvements to the plan in order to make it more workable for multiple-use lands.The comments highlighted issues in the plan that need to be addressed before the DOI moves forward.:Minimum stubble height requirements on perennial grass and other types of vegetation during certain times of the year: These restrictions limit the extent to which ranchers can graze their animals on public lands, since grazing beyond a certain point risks leaving the grass below the minimum height specified in the plan.  In many cases prairie grass doesn’t reach the proposed minimum height, especially in dry years or years following drought.Requirements that new structures on lands covered by the plans have a neutral or beneficial effect on Greater Sage Grouse habitat: This requirement curtails placement of management structures, such as fences, windmills, and various water developments, that are essential for ranching and farming.Restrictions on construction of new permanent facilities within 1.2 miles of occupied Greater Sage Grouse leks: These restrictions effectively prohibit the construction and use of certain facilities in certain areas. These facilities may include corrals, water tanks and windmills, etc., which are necessary to farming and ranching.Mandatory removal of livestock ponds in certain perennial channels: When a livestock pond in a perennial channel is deemed to have a negative effect of riparian habitats, the proposed plan requires it to be removed. Obviously, reservoirs are often vital for watering herds of livestock in Montana and removal would cause undue harm to ranchers and their livestock.Forced removal or modification of certain fences in areas within 1.2 miles of Greater Sage Grouse leks: Ranching and herding require fences to manage livestock, but the plan variously bans or requires modification of fences in ways that will require more labor for ranchers and make ranching less efficient.Various plans need to work together with the states management plan: There cannot be one plan for private land and another for public land.  The State of Montana worked very hard to establish a management plan that would satisfy requirements and protect the species. The state plans have been approved by the Fish and Wildlife Service for the protection of Greater Sage Grouse; therefore, those plans should be used for public lands, as well. Evaluating and reforming the current Sage Grouse Land Management Plan will allow sage grouse, cattle and other multiple uses to flourish together in the American West. 

New kind of farm going up in southeastern South Dakota

There’s a new kind of farm going up in southeastern South Dakota. Its barns will house cattle like many farms in the area, but these cattle won’t be raised for meat or milk. They’ll be producing antibodies that can treat human diseases.

SAB Biotheraputics, based in Sioux Falls, uses cloned cattle with certain human DNA. The cows are injected with a vaccine and produce antibodies to fight disease. By taking the plasma from their blood and sterilizing it in a lab, the antibodies could be used in humans to battle some of the worst diseases, including Ebola and Zika. The company’s latest focus is treating the type of flu that puts people in the hospital. Some people don’t respond to flu shots, but an influenza therapeutic produced by SAB could help them.

The company is working toward the first clinical trials on influenza, and if approved, SAB’s cattle are ready to produce the treatment. The new facility could make enough of the antibody to meet worldwide demand, using just 20% of its capacity.

SAB just completed its first trial in humans for treating MERS or Middle East Respiratory Syndrome. The results showed that the cow-made antibodies worked just like human antibodies to treat the disease.
SAB will start by moving its 35 cows that now live at the Trans Ova Genetics facility across the border in Iowa. Those cows were implanted with embryos the day after the groundbreaking, preparing to create the next generation of antibody-producing bovines.

The first biosecure barn, measuring 360’x50’, will hold up to 80 cows. At full capacity, the 80-acre site and facility could handle 400 head of cows and 40 employees, according to SAB.  

GAO has made several recommendations to USDA for improving oversight of commodity checkoff programs

The U.S. Government Accountability Office (GAO) has made several recommendations to USDA for improving oversight of commodity checkoff programs, including better review of subcontracts and display of key documents on program websites.There are 22 federal agricultural research and promotion programs, funded by a fraction of the sale of each unit of a commodity. In 2016, check-off funds totaled over $885 million.GAO reviewed eight of the programs, finding that USDA’s Agricultural Marketing Service (AMS) has improved its oversight since the agency’s Office of Inspector General (OIG) made recommendations in a 2012 report. AMS has developed and implemented standard operating procedures and begun to conduct internal reviews of its oversight functions.However, GAO also found that AMS does not consistently review subcontracts, which impairs its ability to prevent misuse of funds, and that only four of the eight checkoff programs shared all key documents, including budget summaries and evaluations of effectiveness, with stakeholders on program websites.In addition to recommending better subcontract oversight and transparency on websites, GAO also suggested that AMS establish a mechanism for tracking checkoff board management review, follow steps to improve annual audits, and develop criteria for assessing whether standard operating procedures are met. 

US Farm Exports To South Korea Show Big Increase

South Korean imports of U.S. meat, grains, fruits, vegetables and other farm products have risen by 25 percent this year from January through September, according to a report from the U.S. ag attache office in Seoul, South Korea."Despite escalated competition from export-oriented competitors, consumer-oriented American products continued to lead the expansion of export market in Korea, which reflected Korean consumers' increased demand for better value, quality and diversity," the report said. Of note, the analysis said U.S. farm product exports to South Korea will continue to increase next year, adding the current Korea-U.S. (KORUS) trade accord is partially responsible along with an improving South Korean economy

Head of Brazil's Minvera Sees US Market Reopening To Brazil Beef in First Quarter 2018

Exports of Brazilian beef to the U.S. market are expected to resume in the first quarter of 2018, according to Minvera CEO Fernando Galetti. He told reporters that view is based on consultations with the Brazilian ag ministry.He also noted the situation is unchanged relative to Russia's ban on certain Brazilian meat exports, but the Brazilian government was working to lift that ban "soon."

Canada Group Issues Report on Trade Without NAFTA

A Canada-based financial group outlines trade without the North American Free Trade Agreement in a new report called “The Day After NAFTA.” BMO Financial Group of Montreal published the report that says the Canadian food and beverage industry would be highly vulnerable without NAFTA, and that Canadian and U.S. crop producers would face a moderate level of vulnerability. Specifically,  Canadian food and beverage producers would face among the highest U.S. tariffs of all industries post-NAFTA, according to the Hagstrom Report. For beverage and tobacco exports to the U.S., Canada could see tariff rates approach 20 percent. Food exports would see U.S. tariffs return to around 4.5 percent, far lower than vice tariffs, but still the third-highest of all industries. However, the report points out that less than 20 percent of Canadian crop products are sold into the U.S. marketplace, which would limit the impact on industry costs and profitability. Meanwhile, U.S. crop producers would also be affected, as the report says they would face tariffs averaging nearly four percent on exports to Canada and a lofty 11 percent on exports to Mexico.

Eliminating Poultry Trade Barriers Part of NAFTA Negotiation Objectives

New items added to the list of negotiation objectives include eliminating Canadian tariffs on U.S. poultry as part of the next round of North American Free Trade Agreement talks. The next round of negotiations, scheduled for next month in Washington, D.C., will include the new objectives by U.S. Trade Representative Robert Lighthizer, according to meat industry publication Meatingplace. Lighthizer recently updated the objectives list to include the elimination of all remaining Canadian tariffs on imports of U.S. dairy, poultry and egg products, along with the elimination of “discriminatory barriers and unjustified technical barriers,” including those affecting U.S. grain and alcohol beverages, among other objectives. However, Lighthizer issued a statement last week that said he was “concerned about the lack of headway” in NAFTA talks.

2017 Census of Agriculture Gets Underway

The Department of Agriculture’s National Agricultural Statistics Service is mailing the 2017 Census of Agriculture to the nation’s producers this week. Conducted once every five years, the census aims to get a complete and accurate picture of American agriculture. Data collected in the census is used by farmers, trade associations, researchers, policymakers and others to help make decisions in community planning, farm assistance programs, farm advocacy and rural development, according to USDA. Agriculture Secretary Sonny Perdue says the census “gives every producer the opportunity to be represented.” The census will be mailed in several phases through December. Farm operations of all sizes which produced and sold, or normally would have sold, $1,000 or more of agricultural product in 2017 are included in the census. The census response deadline is February 5th, 2018 and responding to the Census of Agriculture is required by law.

Biodiesel Industry Lobbying for Tax Credit

Nearly 100 members of the National Biodiesel Board are on Capitol Hill this week encouraging lawmakers to reinstate the biodiesel tax credit, which expired in December 2016. As part of an annual fly-in to the Capitol, NBB members are meeting with lawmakers to support the tax credit to “stabilize the business environment” for the industry, according to NBB CEO Doug Whitehead. They are also sharing results of a new survey conducted with 1,000 registered voters nationwide. The survey found that 82 percent of registered voters support a federal tax incentive. The same percentage of people polled expressed support for a national Renewable Fuel Standard. The visits come as the Environmental Protection Agency is expected to release the final RFS volumes this week. Since the July proposal was released, NBB has repeatedly called for growth in the volumes. The July proposal offered up a reduction in advanced biofuels, of which biodiesel fills roughly 90 percent and a flatline of biomass-based diesel.

FSA County Election Deadline Looming

The deadline to return Farm Service Agency county committee election ballots is approaching. The Department of Agriculture says eligible producers must return the ballots to their local FSA office, or be postmarked by December 4th, 2017, to ensure their votes are counted. FSA acting administrator Steve Peterson says approximately 1.5 million producers are eligible to vote in this year’s election, adding that it is “your opportunity to have a say in how federal programs are delivered in your county.” Eligible voters who have not received a ballot can obtain one from their local FSA office. Nearly 7,700 FSA county committee members serve FSA offices nationwide. Each committee has three to 11 elected members who serve three-year terms of office. One-third of county committee seats are up for election each year.

EU Grants Glyphosate License Renewal

After two years of dispute, the European Union has extended the license for glyphosate for five years. Representatives from a majority of the EU's 28 nations approved the five-year license renewal of glyphosate, the most widely used herbicide in the world. The unexpected move unblocked a two-year deadlock after the World Health Organization's International Agency for Research on Cancer concluded that glyphosate has the potential to cause cancer in humans, according to a report by Dow Jones. Eighteen countries voted in favor of the renewal, including Spain and the U.K. Nine nations including France voted against it and Portugal abstained. The European Commission is now set to renew the five-year license before December 15th, when the current license expires. 

Continuing trend of strength in the bred female markets in October and weakness in other classes

Across the nation there was a continuing trend of strength in the bred female markets in October and weakness in other classes. The early November rally in the fed and feeder cattle markets likely added support to female prices but occurred after press time and are not included here. Bred heifers, which posted $200 per head gains in September, added a modest $10 per head average gain in October. Open females suitable to go back to the country also posted modest gains in October. Other female classes saw prices decline, though not significant.Bred heifers sold at auction for an average of $1,170 in October, up from September’s $1,165. Young and middle-aged bred cows posted only a modest $4 per head increase to $1,149 per head. Older bred cows gained $12 per head after September’s large $189 price decline.Open female prices were mostly higher. Heiferettes traded $4 per cwt higher, followed by the young and middle aged cows adding $3 per cwt. Aged open cows declined $5 per cwt. A 1,000-lb. open cow suitable to go back to the country is still trading at about $40 to $50 per head higher than this same time last year.
The market for cow-calf pairs is seasonally thin, as few cattle are marketed as pairs at the end of the grazing season. Cows with small calves held steady at $1,306 per set in October, while cows with large calves lost $57 per pair. Aged cows with calves declined $60 per pair.Slaughter cow prices also declined during October. Utility and commercial cows sold at $58.67 per cwt, down $5.17 per cwt. Canner and cutter cows traded at $54.55, a decline of $3.91 per cwt. 

Survey Shows Young Farmers Ready to Defy Odds

The new generation of young farmers expects to overcome major barriers to their success in agriculture, according to a freshly released national survey. Young farmers expect to tackle barriers including access to land, affordable health care, and mounting student loan debt in their quest to farm. However, the 2017 National Young Farmer Survey says success will require deliberate policy change at all levels of government. Released by the National Young Farmers Coalition, the survey collected data from more than 3,500 young and aspiring farmers under 40 years of age. The report found that the top challenge cited by young farmers is land access, particularly finding and affording land on a farm income. It is also the main reason why farmers quit farming and why aspiring farmers haven’t yet started, according to the survey. With the release of the survey, the coalition is calling on Congress to enact a slate of policy reforms it calls the “Young Farmer Agenda.” The agenda includes addressing land access, student debt management, and increasing the skilled agricultural workforce. The survey can be found at www.youngfarmers.org. 

Trade Tops China, Canada Meeting Agenda

Trade will top the agenda between China and Canada next week during Canadian Prime Minister Justin Trudeau’s (True-doh) visit to China. The visit is aimed at promoting a "progressive trade agenda” that Canada says will “create good, middle-class jobs," according to Bloomberg News. The trip comes as Canada is in the midst of renegotiating the North American Free Trade Agreement with the U.S. and Mexico. China was Canada's second-largest trade partner behind the U.S. last year, with nearly $70 billion in total trade. Merchandise shipments to China rose four percent to almost $21 billion in 2016, led by forest and agricultural products. Officials from China say a potential bilateral trade deal with Canada would boost economic integration in the Asia-Pacific region.

Former BPI Employees Apply for Financial Aid Fund

Roughly 700 former Beef Products Inc. employees have applied for financial aid from a fund created by a lawsuit settlement with ABC News. Meat industry publication Meatingplace reports that BPI representatives are currently reviewing the applications to determine how it will distribute the funds, taking into account how employees were financially impacted and their length of service. The $10 million fund was established to benefit BPI employees negatively affected by plant closures in 2012. The fund was announced after BPI reached a settlement with ABC News in its defamation lawsuit. BPI closed three of its production facilities in 2012 and laid off about 750 employees after business fell off following a series of media reports that referred to the company’s Lean Finely Textured Beef product as “pink slime.” 

Capitol Christmas Tree Arrives

A nearly 80-foot tall Christmas tree arrived Monday at the U.S. Capitol in Washington, D.C. The Department of Agriculture's Forest Service provides a tree each year from a different state for the Capitol. This year's tree, an Engelmann Spruce, is 79 feet tall and comes from northwest Montana. The 15,000 lbs., the 76-year-old tree made a two-week, 3,400-mile journey to reach the Capitol. With the tree, around 70 companion trees, ranging anywhere from six to 20 feet tall, and all from Montana, will go to Senate and congressional offices. The annual tree-lighting ceremony at the Capitol is scheduled for December 6th. 

Eliminating Canadian tariffs on U.S. poultry products and expanding transparency on other trade issues are among items for the upcoming NAFTA negotiations

Eliminating Canadian tariffs on U.S. poultry products and expanding transparency on other trade issues are among the new items in an update of the U.S. Trade Representative’s (USTR) objectives for the upcoming North American Free Trade Agreement (NAFTA) negotiations.U.S. Canadian and Mexican negotiations last week completed the fifth round of talks on revising NAFTA and are scheduled to resume meetings next month in Washington, D.C. USTR recently updated the objectives list issued in July 2017 to include several new items, including:The elimination of all remaining Canadian Tariffs on imports of U.S. dairy, poultry and egg products.The elimination of “discriminatory barriers and unjustified technical barriers,” including those affecting U.S. grain and alcohol beverages.Reinforce commitments to promptly publish laws and rulings that affect trade and investment and provide opportunities for public comment before measures are finalized.Ensuring transparency and accountability in the development, implementation and review of regulations.Increasing opportunities for US. firms to sell U.S. products and services into the NAFTA countries.The new update also expands previously listed provisions covering small- and medium-sized enterprises (SMEs), specifically establishing a NAFTA trilateral committee and dialogue on increasing commercial opportunities within NAFTA for SMEs.USTR Robert Lighthizer issued a statement last week that said he was “concerned about the lack of headway” in NAFTA talks. 

Cash fed cattle prices declined 50 cents per cwt. last week

Cash fed cattle prices declined 50 cents per cwt. last week, but average feedyard closeouts showed profits of nearly $90 per head, a $61 improvement over the previous week. Margin gains were the result of a $5 per cwt. decline in closeout break even prices, according to the Sterling Beef Profit Tracker.The cost of feeder cattle calculated against last week’s marketings declined $6.60 per cwt., while feed costs dropped $14 per head, according to the weekly average calculations.Beef packer margins improved an average of $28 per head to $120. The beef cutout declined $1.72 per cwt. to $204.81. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.Break even prices for steers sold last week averaged $112.15 per cwt., and average feed costs totaled $217 per head. Cattle placed on feed last week have a projected breakeven of $114.38 per cwt.The cost of finishing a steer last week was calculated at $1,561 per head, which is $67 less than the $1,537 a year ago. A month ago cattle feeders were earning $168 per head, while a year ago losses were calculated at $31 per head. Feeder cattle represent 75% of the cost of finishing a steer, compared to 72% last year.Farrow-to-finish pork producers lost an average of $2.35 per head last week, a decline of $2 per head from the previous week. Lean carcass prices traded at $58.81, a dip of $1.66 per cwt. from the previous week. A year ago pork producers lost an average of $33 per head. Pork packer margins totaled $40 per head last week, about $5 per head higher than the previous week.Cash prices for fed cattle are $10 higher than the same week a year ago. Lean hog prices are about $15 per cwt. higher than last year.Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2017 will average $136 per cow. That would be $46 per head less than the estimated average profit of $177 for 2016. Estimated average cow-calf margins were $438 per cow in 2015.For feedyards, Nalivka projects an average profit of $228 per head in 2017, which compares favorably with average losses of $4.25 per head in 2016. Nalivka expects packer margins to average about $118 per head in 2017, up from $114 in 2016.For farrow-to-finish pork producers, Nalivka projects 2017 profit margins to average $20 per head, compared to $5 per head last year. Pork packers are projected to earn $24 per head in 2017, up slightly from $24 profit per head in 2016. 

A federal court has delayed a mandate for livestock producers to report certain emissions

OMAHA (DTN) -- A federal court has delayed until Jan. 22, 2018, a mandate for livestock producers to report certain emissions, according to an order handed down from the U.S. Court of Appeals for the District of Columbia Circuit on Wednesday.Back in April, the court threw out a U.S. Environmental Protection Agency decision to not require livestock operations to report emissions, essentially allowing the reporting rule to take full effect on Nov. 15, 2017. The rule requires livestock producers to report emissions of more than 100 pounds per day of either ammonia or hydrogen sulfide.Animal feeding operations that confine more than 1,000 head of cattle, 2,500 head of hogs, or 125,000 chickens are defined as concentrated animal feeding operations, or CAFOs, by EPA. Ammonia and hydrogen sulfide emitted from livestock lagoons have been classified as "hazardous" and "extremely hazardous." 

Strong stocker demand pushed calf prices counter-seasonally higher before Thanksgiving

For the week ending November 17, the Oklahoma combined auction price for 475 pound, medium/large, number 1 steers was $183.34/cwt.  That is the highest price for that category of steers since May of 2016 and is $28.86/cwt higher than the same week last year.  Across weight groups, feeder cattle prices are generally 17 to 24 percent higher than one year ago.  Steer calves are bringing $140-$200/head more than last year and heifer calves are bringing $100-$150/head more.  The strength in feeder cattle prices has been quite remarkable given increased supplies.  Auction volumes have been 25 percent higher than last year for the last four weeks.Prices for bigger feeder cattle dropped last week under the pressure of declining Feeder futures.  However, heavy feeder prices have been a bit stronger relative to calves all fall and thus remain very good.  Steer prices are realigning to a more typical rollback with heavy weights declining relative to calf prices.  Heifers, however, continue to have a very flat price structure with heifers from 475 to 725 pounds all priced within $3.00/cwt. last week.The November Cattle on Feed report was a continuation of recent months.  Placements were larger than expected, up 10.2 percent year over year.  Marketings were up 5.6 percent leading to a November 1 on-feed total of 11.332 million head, up 6.25 percent over last year.  Feedlot inventory growth is slightly higher in the north with year over year Nebraska and Iowa on-feed totals up 8.6 and 15.0 percent while Kansas and Texas are up 2.2 and 6.0 percent. Year to date steer and heifer slaughter is up 5.5 percent year over year with steer slaughter up 2.5 percent and heifer slaughter up 12.0 percent.  However, in the last eight weeks, steer and heifer slaughter is up just 4.4 percent year over year. So far this year cow slaughter is up 7.1 percent led by a 10.4 percent year over year increase in beef cow slaughter and a 4.2 percent increase in dairy cow slaughter.  Fed carcass weights continue to inch toward a seasonal peak but remain well below year ago levels.  Latest steer carcass weights were 902 pounds compared to 913 pounds the same week last year.  Heifer carcass weights are currently 833 pounds, nine pounds less than the 842 pound level at this time last year. Beef production is up 4.1 percent for the year to date but the year over year increase is declining.  In the last eight weeks, beef production is up only 1.8 percent compared to the same period last year.  Boxed beef prices enjoyed a nice rally through early November but have since pulled back with most holiday meat sales already completed.  October retail beef prices were steady with year ago levels for both Choice and All-Fresh beef. All in all, cattle and beef markets appear set to finish 2017 on a strong note. 

Canada's wheat exports (excluding durum) at 4.7327 million metric tons the week-ending Nov. 19

The Canadian Grain Commission reported Canada's wheat exports (excluding durum) at 4.7327 million metric tons as of week 16, or the week-ending Nov. 19. This volume is 8.4% ahead of the same period in 2016/17, as seen on the accompanying graphic, although is still well behind the pace of movement seen in the 2013/14 through 2015/16 period and is 4% behind the five-year average for this period.This comes at a time when major wheat exporters are struggling. Friday's sales and shipments data in the U.S. shows that country's sales and shipments are both 8% behind the year-ago pace. The European Commission has reported that cumulative exports of wheat since the beginning of the crop year is 2 mmt behind the same period last crop year as of the latest week, with increased competition from Russia and the strength in the Euro weighing on E.U. prospects. On Thursday, European analyst AgriTel reported on Russian statistics, which points to record on-farm stocks of wheat in that country as of Nov. 1, which suggests the situation may not change for some time. As of Nov. 1, Russia's total wheat stocks were estimated to be 20% higher than last year while milling wheat stocks were estimated 28% higher than the same period in 2016.Trade data to be released in the upcoming weeks should point to continued movement into the U.S. Week 16 data points to exports from licensed terminals at 4.3985 mmt, which reflects 93% of total licensed exports. This compares to 98% of exports in the same period of 2016/17 originating from export terminals while the three-year average is 96.2%. This suggests a higher share of exports originating from direct rail movement to the south.Can this pace continue? Total commercial stocks are reported at 3.046 mmt, up 45.5% from the volume reported in week 16 of the 2016/17 crop year. Of this volume, 1.459 mmt is reported in export terminals, up 22.8% from last year. Volume held in Pacific terminals is reported at 264,600 metric tons, down 2.9% from last year. The largest year over year change in inventories is seen in licensed primary elevators in the country, with stocks increasing 81% year over year at close to 1.5 mmt, the highest country stocks seen for this week in four years.Perhaps one concern is seen with the report for in-transit stocks, western rail in-transit stocks reported at 54,700 mt, the lowest weekly volume seen in five weeks and down nearly 74% from the same week in 2016/17.

EPA Maintains RFS Point of Obligation Requirement

The Environmental Protection Agency decided Wednesday to maintain the Renewable Fuels Standard Point of Obligation. A Farm Futures Dot Com report notes that EPA administrator Scott Pruitt followed through on a promise to a group of Midwest senators that he would deny a petition from oil refiners to change the point of obligation. He followed through on Wednesday when the Federal Register noted that the petition had been denied. Petitioners had claimed that changing the point of obligation would result in an increase in the production, distribution, and use of renewable fuels in the U.S. and would reduce the cost of fuel for consumers. An EPA news release says the agency doesn’t believe that the petitioners proved that changing the point of obligation would be beneficial. The EPA says, “While we do not anticipate a benefit from changing the point of obligation, we do believe that such a change would significantly increase the complexity of the RFS program, which could negatively impact its effectivness.” POET CEO Jeff Broin says, “I applaud the President and EPA for standing up to the special interest groups within the oil industry who seek to undermine American-made biofuels.”

Some Corn Belt Farmland Values are Stabilizing

Although it’s not region-wide, there are some signs that farmland values in the Corn Belt have begun to stabilize. A Top Producer report says Iowa farmland values rose two percent in the six months prior to September. Those same values are also three percent higher than at the same time last year. The Iowa Chapter of Realtors Land institute survey says that’s the first increase in three years. Other Corn Belt states are showing steady to slightly lower values over the same time period. The report notes that the run-up in farmland value started in Iowa and then spread to other states. The downturn over the last couple years also began in Iowa and spread to the other states. The overall volume of properties currently for sale remains tight, which the report says tends to be supportive for the higher-quality land for sale. The number of farmland properties for sale typically rises in the winter. However, if the overall volume stays low, that may actually help values in other states, especially in the Corn Belt, begin to follow Iowa’s lead and stabilize further. 

Grassley, Ag State Senators Maintain Push for NAFTA

Iowa Republican Senator Chuck Grassley remains optimistic that the North American Free Trade Agreement negotiations will come to a conclusion that benefits agriculture. The Gazette Dot Com said Grassley’s optimism remains in spite of the hard-line taken by the Trump administration in the negotiations. Grassley and other ag-state senators have been continually pushing for the trilateral agreement to continue. The U.S. Chamber of Commerce says NAFTA supports 138,000 jobs and $5.3 billion in exports from Grassley’s home state. At a recent appearance in Cedar Falls, Iowa, Grassley noted that he expects the hard-line negotiations from the Trump administration to continue, but he also says, “surely they’re not going to let this thing fall through.” Grassley says he, fellow Iowa senator Joni Ernst, and Senate Ag Committee Chair Pat Roberts of Kansas have all been continuing to push for the agreement in meetings with several key Trump advisers. He’s had three or four meetings with trade adviser Pete Navarro, two or three with Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer met with Grassley for 45 minutes.

South Korea Minister Says No Concessions in Farm-Sector KORUS Discussions

The South Korean trade minister says his country will not take a step backward in the upcoming discussions on updating the South Korean – U.S. free trade deal, known as KORUS. The Korean Herald Dot Com says he told reporters that the government is taking a “strong stand on the agriculture sector and will not retreat any further.” This was similar to a comment made by the top Korean negotiator back in October that said the ag sector is a “red line.” The U.S. is looking to narrow the trade deficit it currently faces in trade with South Korea. The trade minister said America is looking to export more goods from the auto and steel industries but did say another option the U.S. may want is to export more farm goods. Over five years after the deal was first ratified, U.S. calls for renegotiation are worrying the South Korean ag sector that it might be undermined as the country is already dealing with product oversupply. A public hearing on November 10 in South Korea was interrupted by farmers demanding the deal be ended. They were upset about a government feasibility study that showed renegotiation would have little impact on the economy, saying it “misrepresented the local ag economy.”

H-2A Minimum Wage for Guest Workers Likely to Rise in Several States

The minimum wage for H-2A guest workers is likely to rise in several states during 2018. The National Ag Statistics Service surveys the prevailing wages of field and livestock workers in different regions across the country. The NASS calculations are normally adopted by the U.S. Department of Labor in December as the Adverse Effect Wage Rates for the coming year. The AEWR is above state minimum wages and is intended to prevent domestic wages from being impacted by an influx of foreign workers. For example, the new minimum wage for H-2A visa guest workers in Washington and Oregon will likely rise over five percent to $14.12 per hour. While the wage is higher, the region ranking slips from the highest minimum wage to the second-highest in the nation. Hawaii is number one at $14.37 per hour. California’s wage is projected to rise almost five percent to $13.18. Idaho and Wyoming will likely drop three cents to $11.63. Florida, Georgia, and North Carolina are the top three states in the U.S. in terms of the overall number of H-2A guest workers, with Washington and California rounding out the top five states.