U.S. dairy groups are now calling on governors to halt new changes in Canadian dairy rules

(DTN) -- Just a few weeks after writing to President Donald Trump, U.S. dairy groups are now calling on governors to halt new changes in Canadian dairy rules. A coalition of 17 American dairy organizations, farmers and milk processors have written governors in 25 states asking them to press Canada into halting a new dairy pricing strategy set to go into effect on Wednesday. The groups point to Canadian provincial policies for ingredient class milk prices that the groups state are displacing U.S. exports to Canada. Essentially, Canadian provinces created a new class of milk ingredients that was done largely as a strategy to reduce similar milk products from the U.S. The policy "is conservatively estimated at $150 million worth of ultra-filtered milk exports being lost by companies in Wisconsin and New York, which are highly reliant on their trade with Canada," Beginning Feb. 1, Canada will expand the different dairy products under the provincial rules and take the program national. Canadian dairy groups argue the new national ingredient strategy was needed to ensure the country's supply management system responds to changes in the market. The U.S. dairy groups argue Canada's new policy will "disrupt skim powder milk markets around the world by using the new program to dump excess milk powder on global markets." In writing 25 governors, the U.S. dairy groups and companies asked officials to "consider all tools at their disposal to ensure Canada understands the seriousness of the issue." U.S. dairy groups argue the new Canadian program is protectionist and violates the North American Free Trade Agreement. The dairy groups reached out to state officials because the Trump administration isn't exactly in position to help U.S. dairy farmers as of yet. The U.S. Trade Representative, Department of Commerce and USDA cabinet nominees are still pending. Trump also has not named a new ambassador to Canada. The dairy groups argue that U.S. and Canadian trade "cannot be a one-way street with Canada expecting to enjoy the benefits of exporting its products of interest to our market while denying a sector accounting for hundreds of thousands of jobs in rural America reliable access to the Canadian market," the group said in its letter to the governors. "[An existing provincial] program has already cost U.S. companies tens of millions of dollars in exports, thereby harming the dairy farmers, dairy plant employees and rural communities that depend on the benefits those foreign sales bring." The letter was spearheaded by the National Milk Producers Federation, International Dairy Foods Association and U.S. Dairy Export Council. "In the current trade climate across North America, it is foolhardy for Canada to continue provoking the United States with a course of action that so blatantly violates our trade agreements," said Jim Mulhern, president and CEO of NMPF. "We need our nation's governors to join in our call for Canada to step back from the brink of what it is about to do and take steps to remind Canada how critical trade is to its own interests, as well." States sent the letter include Arizona, California, Colorado, Idaho, Iowa, Indiana, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Vermont, Virginia, Washington and Wisconsin. 

Agriculture-Related Regulations Among Those Subject to Trump Order

Several regulations in the review stage under the Obama administration on agriculture and other areas now have a more-uncertain time line after Trump officials marked them as withdrawn, sending them back to their respective departments, according to the Office of Management and Budget (OMB) website as of January 27.To advance, the withdrawn rules would need to be submitted again to OMB. The moves are part of the Trump administration's broader regulatory freeze signed just hours after the president's January 20 inauguration. Since then, the OMB has effectively cleared the table of regulations under review. The decree put a halt on any new regulations until March 21.In the last few weeks of President Barack Obama's term, the White House finalized a slew of long-awaited regulations, including rules creating a checkoff program for the organic industry and others overhauling poultry farming contracts. Because of Trump's regulatory freeze, the implementation of some of those rules could be delayed or abandoned altogether. The rules withdrawn by the administration had yet to be reviewed, finalized and sent out for implementation by OMB.The freeze, in part, halts plans for USDA to seek public comment on implementing legislation creating a nationwide labeling system for foods made with genetically modified organisms (GMOs). Congress passed a GMO labeling law in mid-2016 and asked USDA to finalize the rules by 2018.The order could prevent the department from taking comments on an advance notice of proposed rulemaking and could also push back the time line for the department to complete a study on whether electronic labels such as QR codes are an effective way to convey GMO information. That study was expected to be completed by mid-2017.Trump's order also put a halt to a proposed rule that would establish standards for organic fish farms. That rule had been under review at OMB since August 2015.***US-Mexico Sugar Trade Suspension Agreement
Efforts to revise the 2014 U.S.-Mexico sugar trade suspension agreement have been lengthy and unresolved issues remain. The U.S. has tried to get Mexico to agree to a proposed solution but to date Mexico has not accepted, despite the U.S. offering Mexico a proposal of which Mexico has not yet responded.Mexico is the top supplier to the U.S. sugar industry and negotiators from both countries are in talks to the suspension agreement that prescribes the balance of raw and refined sugar that heads to the U.S. to ensure refiners have what they need. Among the terms that the some in the U.S. sugar industry have proposed to Mexico are clauses that specify what type of refiner can receive Mexican imports under the deal.The U.S. Department of Commerce in preliminary findings from a review of the 2014 U.S. antidumping and countervailing duty suspension agreements involving exports of sugar from Mexico to the U.S. released Nov. 29, 2016, indicated some transactions may be out of compliance with the agreement, among other issues.But Commerce said it had not yet found a sufficient basis to make a reliable judgment as to whether the Government of Mexico and the Mexican respondent mills have adhered to the terms of the agreements and whether they continue to meet the requirements. The Commerce has delayed several times its final review of the matter, with the latest date said to be April.Sugar trade between the two countries, absent any updated trade suspension agreement, would be impacted should the NAFTA accord be revised or if the U.S. officially withdraws from the pact. If so, Mexico would not be able to send much sugar to the U.S. as the U.S. sugar import quota was established during a time when Mexico did not sell much sugar to the U.S. 

Refugee Regulations Could Squeeze U.S. Meatpackers Labor Pool

An executive order by President Donald Trump to suspend refugee arrivals could harm meatpacking companies. The Wall Street Journal reports meatpackers that rely on foreign-born workers to fill tough jobs in rural America could face labor shortages. The executive order suspended the refugee program four months and would cut the number of refugees allowed into the United States in half to 50,000. The move comes as dozens of meatpackers are expanding or building new facilities, following two years of high profits. Meatpackers often look for foreign-born workers to fill jobs most Americans are unwilling to perform. North American Meat Institute CEO Barry Carpenter says he hopes the Trump administration “will give careful consideration” the impact these changes would have on meatpacking companies, and on foreign-born workers “who are eager to build new lives in America” through the jobs meatpackers can offer

U.K. Says Trump Ready to Begin Trade Talks

The United Kingdom says U.S. President Donald Trump has agreed to start trade talks between the U.K. and the United States. British Prime Minister Theresa May says the two agreed to start preliminary talks on a trade deal but stressed that no deal would be signed until the U.K. exits the European Union. Politico reports the two leaders agreed to set up joint working groups to start “scoping out” what can be achieved while waiting for the United Kingdom to leave the EU. The signal of bilateral talks continues Trump’s campaign pledge of one-on-one trade deals with other nations. Trump on Friday said he looked forward to working with the United Kingdom. U.K. Prime Minister May said both sides were discussing a “trade negotiation agreement” as the first step of crafting a trade deal between the two countries. The wording suggests there will be an official pledge between May and Trump to negotiate a trade agreement once the United Kingdom leaves the EU

Germany Urging EU to Speed Trade Deal Negotiations Amid Protectionist Policy Fears

Germany asked the European Union last week to speed-up trade talks to open trade with more than a dozen countries. The effort is aimed at boosting support for free trade in response to protectionist trade policy from U.S. President Donald Trump. In a statement to the EU, Germany repeated its view that Trump, along with Britain leaving the EU, posed risks for the world economy, according to Reuters. Germany called on the EU to bolster common policies in defense, diplomacy and the economy. Germany also asked the EU to push against trade protectionism and support free trading relationships and “international cooperation.” In his first week as President, Trump signed an executive order to withdraw the United States from the Trans-Pacific Partnership trade agreement. Trump is also targeting reforms to the North American Free Trade Agreement

Former Trump Transition Leader Warns of Two-thirds Cut of EPA Staff

A leader involved in the Trump Transition team says to expect budget and employment cuts to the Environmental Protection Agency. Myron Ebell(Eb-bell) was the former head of President Donald Trump’s EPA transition team and has suggested cutting the EPA workforce to 5,000, about a two-thirds reduction over the next four years. He says the EPA’s $8.1 billion budget would also be sliced in half under his recommendations, according to the Washington Post. Ebell, along with Trump, favors the cuts as a way to curb regulatory overreach by the EPA. Ebell says the overreach would be much harder if “the agency is a lot smaller.” While he says cutting 10,000 staffers may not be realistic, he called it an “aspirational goal,” saying “you’re not going to get Congress to make significant cuts unless you ask for significant cuts.”

USDA NASS Conducting Certified Organic Survey

The Department of Agriculture’s National Agricultural Statistics Service is conducting the 2016 Certified Organic Survey to gather data on organic crops and livestock in the United States. USDA says the survey is critical to help determine the economic impact of certified organic agriculture production in the United States. The survey is being mailed to all known certified organic farms and ranches throughout the country and asks producers to provide information on acreage, production, and sales, as well as production and marketing practices. USDA NASS says certified organic sales totaled $6.2 billion in 2015, up 14 percent from 2014. A USDA spokesperson says as sales grow, so will the demand for accurate data. The report, to be released September of this year, will also assist producers, suppliers and others in the private sector in planning the production and marketing of new products. All information in the survey is confidential, and USDA is asking producers to return the survey by February 19th.

Monsanto to Appeal California Glyphosate Ruling

Monsanto will appeal a ruling by a California judge allowing the state to force Monsanto to label Roundup as a possible cancer threat because it contains glyphosate. Monsanto sued the nation's leading agricultural state, saying California officials illegally based their decision to require the labels on information from the International Agency for Research on Cancer, according to the LA Times. The agency has categorized glyphosate as a likely carcinogen, against many other science and environment agencies findings. Following the findings, California took its first step in 2015 to require the warning labels. Monsanto contends California is delegating its authority to an unelected foreign body with no accountability to U.S. or state officials in violation of the California Constitution. Monsanto’s Roundup is sold in 160 countries, and farmers in California use it on 250 types of crops. 

Could Montana Beef Council be a template for other state checkoff programs?

What are the consequences when a state checkoff organization cedes authority to USDA? The text of a new agreement established at the tail-end of 2016 erases boundaries and could carry implications for the entire U.S. commodity checkoff system.On Dec. 22, 2016, a Memorandum of Understanding (MOU) became effective between the Montana Beef Council (MBC) and the USDA-Agricultural Marketing Service (AMS), allowing AMS oversight of MBC’s use of checkoff funds from the standard $1 per head assessment.“Since this is tied to pending litigation, we cannot comment at this time,” AMS officials say.Could the MOU serve as a blueprint for other state-federal relations in the checkoff system? “This MOU is a historic shift and change in perception from the current federal-state relationship between a state beef council and AMS,” says Harrison Pittman, director of the National Agricultural Law Center in Fayetteville, Ark. “Historically, state programs have maintained a level of autonomy in terms of the half of the assessment that stayed in the state.”Why would MBC hand over authority to AMS? MBC is locked in a Montana federal district court battle with the Ranchers-Cattlemen Action Legal Fund (R-CALF). Pared down, R-CALF claims the $1 per head assessment is used to subsidize MBC, which they say is a private entity because it lacks sufficient federal oversight and therefore is a violation of free speech and the First Amendment. On Dec. 12, Magistrate Judge John Johnston recommended the district court deny USDA’s motion to dismiss and grant R-CALF’s preliminary injunction. Johnston said R-CALF has standing to pursue its claims in court, although the recommendation is subject to more review.“We view the MOU as an eleventh hour attempt to persuade the court not to grant a preliminary injunction. The MBC appears to be surrendering its authority to the federal government; rendering their own board members irrelevant and handing the government absolute control over all operations,” says Bill Bullard, CEO of R-CALF.Echoing AMS, MBC officials declined to comment on the MOU, referencing ongoing litigation.(For more, see Legal Jumble Over Beef, Soybean Checkoff Dollars)The MOU details direct AMS control of MBC on matters many state programs don’t worry about now, Pittman says. For example, the MOU details MBC must submit an annual budget for approval. Plans, proposals, contracts and agreements “shall become effective only upon AMS’ approval.” The MOU also allows third parties to be audited by USDA or “agents of the Beef Promotion Operating
Committee or the Beef Board.” It also provides directions for the decertification of MBC and mutual termination of the contract.Citing active litigation, the Beef Board declined to comment.By weight of the text, if MBC fails to follow the MOU, AMS is allowed to “direct the Beef Board to decertify MBC as a QSBC [Qualified State Beef Council].” The MOU also requires mutual termination for either party to exit the agreement.Pittman believes the MOU is exportable to other state councils and could fundamentally alter the federal-state partnership of checkoff programs. “The MOU subjects entities such as land-grant universities to audit at will by the USDA or CBB [Cattlemen’s Beef Board], and that’s stunning,” Pittman notes.Brianna Schroeder, an attorney with Janzen Agricultural Law, in Indianapolis, says the MOU is a “warning shot” to commodity groups. “The MOU provides a template that any federal group could use to take more control from states. Whether this is good or bad is up to the reader,” she notes. “The feds can use this as a means to take control over budgets and messages from state boards that receive checkoff funds.”Schroeder advises producers to stay in contact with state checkoffs and ask questions. “There is no legal reason this lawsuit or MOU can’t be replicated in your state,” she says. “Don’t think because it’s in Montana it can’t happen in Indiana.”State councils that applaud the MOU might be clapping with one hand. After all, what the government gets, it tends to keep. “One thing is quite clear: In Montana, AMS is now in direct control, at least at the moment,” he says. “What about other states?” 

When Japan Demands Quality, the U.S. Delivers

Japan is halfway around the world from the U.S. but continues to be a critical customer of American-made wheat. The U.S. supplies 57% of Japan’s total annual wheat imports. That adds up to 10% of total U.S. wheat exports for hard red winter (HRW), soft white and hard red spring.

For HRW wheat, Japan is the fourth-largest buyer, on average. This past year, the country imported 3.3 million bushels of HRW, or 1⁄25th of the entire U.S. crop.

According to the Kansas Wheat Scoop newsletter, the Japanese market is quality conscious and values the reliability and choices provided by the U.S. wheat supply chain from farm to port. As a result, Japan issues large tenders for U.S. wheat on a consistent basis through its import state-trading enterprise.

The Ministry of Agriculture, Fisheries and Forestry purchases nearly all of Japan’s wheat imports and then sells to Japanese flour mills. Japanese millers are highly sophisticated and efficient with the ability to produce up to 500 different products daily. Japanese millers primarily use HRW for noodle production.

While most of the wheat Japan purchases comes from targeted geographies, the total volume of imports raises the demand and price for all HRW farmers, says Shawn Campbell, assistant director of the U.S. Wheat Associates West Coast office.

“Without the Japanese, farmers in states like Montana would be forced to sell HRW at a much discounted price in order to compete in the domestic market,” he adds. 

Livestock Industry Supports Legislation to Address BLM Planning Rule

WASHINGTON (Jan. 31, 2017) – The Public Lands Council and the National Cattlemen’s Beef Association applaud the introduction of concurrent resolutions in both the Senate and House disapproving the Bureau of Land Management’s Planning 2.0 rule finalized last December. The resolutions, introduced by Senate Energy and Natural Resources Chairwoman Lisa Murkowski (R-AK) and Rep. Liz Cheney’s (R-Wyo.) respectively, would reverse damage done in the final hours of the Obama administration. Ethan Lane, Executive Director of PLC and NCBA Federal Lands said the rule represents a wholesale shift in management focus at BLM; prioritizing “social and environmental change” over multiple use, and eliminating stakeholder and local input into the planning process.

“It’s critical that Congress step in to halt implementation of this midnight regulation before it does irreparable harm to our ability to manage federal lands,” said Lane. “Despite paying lip-service to our input in the final rule, the fundamental problems with Planning 2.0 remain, and the rule must be withdrawn. We applaud Senator Murkowski and Rep Cheney’s leadership on this critical issue and look forward to working with Congress and the new Administration to undo this kind of regulatory overreach.”

PLC and NCBA urge Congress to pass these resolutions without delay.  

Trump Mexico Tax Would Hurt Agriculture

President Donald Trump’s plan to implement a 20 percent tax on all goods imported from Mexico would likely harm agriculture and consumers alike. The tax is seen as a way to pay for a border wall between the U.S. and Mexico, estimated to be worth billions of dollars. The tax would presumably apply to agricultural products, including fruits and vegetables that are staples in U.S. grocery stores, according to the Hagstrom Report. The United Fresh Produce Association says the tax, and renegotiating trade agreements to include similar tariffs, risk provoking a trade war. United Fresh says a 20 percent hike in the cost of foods such as bananas, mangoes and other products that we simply can’t grow in the United States, would burden consumers.

Trump Trade Action Impact on U.S. Grains

Newly-inaugurated President Donald Trump has already followed through with key campaign promises related to trade policy - moves that have caused concern among grain farmers whose price is being supported by export sales. Trump withdrew the United States from the Trans-Pacific Partnership and intends to renegotiate the North American Free Trade Agreement. The U.S. Grains Council says these moves are intended to pave the way for new negotiations. However, in the short term – and coming soon after serious trade policy issues with China – they could severely curtail U.S. grain farmers’ market access globally and open up existing export markets to new levels of competition. Over the past two decades, U.S. agricultural exports to Canada and Mexico tripled and quintupled, respectively, according to the U.S. Chamber of Commerce. One in every 10 acres on American farms is planted to feed hungry Canadian and Mexicans. The Grains Council says its leadership will continue to assess all trade policy changes by the new administration and aim to work with the Administration to maintain and expand the benefits of existing or new trade dialogues.

Landowner Wins Case against Army Corps

The National Cattlemen’s Beef Association says landowners scored a victory last week when a federal district court ruled against the Army Corps of Engineers for incorrectly claiming jurisdiction over private property. The Corps had claimed a piece of property owned by Hawkes Company, and used by Hawkes to harvest peat, was a “waters of the United States” which requires a federal dredge and fill permit under the Clean Water Act. In a resounding victory, the Supreme Court ruled unanimously in favor of Hawkes, setting a precedent that landowners may challenge the Corps’ jurisdictional determinations. NCBA environmental counsel Scott Yager said the case “highlights the subjectivity of how the agencies determine the presence of a WOTUS.” He says the ruling adds to the momentum of getting the flawed WOTUS rule fixed.

Bird Flu Fears Growing

The global spread of bird flu is increasing concerns the viruses will be transferred to humans. Global infections of highly pathogenic avian influenza have reached unprecedented levels, according to Reuters. The presence in so many parts of the world at the same time increases the risk of viruses mixing and mutating, and possibly jumping to people. While the U.S. has escaped much of the recent outbreaks, widespread avian influenza has been confirmed across Europe, Africa and Asia in the last three months. Global health officials are worried another strain could make a jump into humans like H5N1 did in the late 1990s. Disease experts fear a deadly strain of avian flu could then mutate into a pandemic form that can be passed easily among people - something that has not yet been seen. But, while there would normally be around two or three bird flu strains recorded in birds at any one time, now there is at least half a dozen, which is prompting the fears

40 Percent of Farms Managed by Multiple Operators

New data released last week by the U.S. Department of Agriculture shows nearly 40 percent of all U.S. farms are managed by more than one operator. USDA’s Economic Research Service says in 2015, 39 percent of the more than 800,000 U.S. farms had secondary operators. USDA says commercial-sized farms often require more management and labor than an individual can provide.  Also, additional operators can offer other resources, such as capital or farmland.  Having a secondary operator may also provide a successor when an older principal operator phases out of farming. Because nearly all farms are family-owned, family members often serve as secondary operators and nearly two-thirds of all secondary operators were spouses of principal operators. Multiple-operator farms are most prevalent among nonfamily farms, accounting for 85 percent of that group. Some multiple-operator farms are also run by multiple generations. About 6 percent of all farms, and 16 percent of all multiple-operator farms, were multiple-generation farms, with at least 20 years' difference between the ages of the oldest and youngest operators. 

Plant Breeding Innovations to Help Meet Increasing Demand for Safe, Affordable Food

Through advancements in agriculture and the development of new crop varieties, humans have historically strived to meet the needs of a growing population and to develop a safe, reliable and sustainable food supply. How will we continue to meet this challenge, while dealing with a changing climate and threats of new pests and diseases? The American Seed Trade Association (ASTA) affirms that continued innovation is paramount to the future of agriculture and to our shared quality of life. Plant breeders including those who develop new wheat varieties will need access to available tools to responsibly meet these challenges. 

The fundamental practices of plant breeders have not changed over time, ASTA notes. Plant breeders still select the best plants for their desired goal, which may be higher yields, disease resistance, improved end use characteristics or better nutrition. However, the tools and information that plant breeders use have evolved, allowing them to take advantage of the growing understanding of plant science and genetics. Today, with the capability to sequence plant genomes and the ability to link a specific gene or genes to a specific characteristic, breeders are able to more precisely make improvements in plant varieties. Breeders can also make specific changes in existing plant genes in ways similar to changes that could occur in nature. 

Innovative breeding methods include a variety of tools that mimic processes that have been used in traditional breeding since the early 20th century. ASTA reports that breeders may opt to use the newer methods rather than classical breeding to reach the same endpoint more accurately and efficiently. As with more traditional breeding methods, some of the newer methods focus on using a plant’s own genes, or genes from the plant’s wild relatives, to create a desired characteristic, such as disease resistance or drought tolerance. It is a more precise way of creating genetic variation — a longtime goal of plant breeders. To read more about innovations in wheat breeding, visit http://www.heartlandinnovations.com/about-us/kansas-wheat-innovation-center. 

It is important to note that seeds are comprehensively regulated by USDA. A key feature of the plant breeding process is extensive testing and evaluation starting early in the process and continuing until the final product is commercially available. These tests are based on procedures breeders have used for many decades to create new plant varieties that are safe to grow and eat. 

The world’s farmers and food manufacturers understand that America’s agriculture producers face the very real challenge of providing for a growing population so future generations have access to the same diverse, nutritious and high quality food we enjoy today. ASTA believes improved breeding methods will help meet these needs more efficiently and economically through agriculture practices that preserve natural resources and biodiversity. These new breeding methods are accessible to both public and commercial plant breeders in developed and developing countries, and they can be used across all agriculturally important crops, including food, feed, fiber and fuel crops.  

Landowner Wins Case against Army Corps

WASHINGTON (Jan. 27, 2017) – Earlier this week, landowners scored a victory when a federal district court ruled against the Army Corps of Engineers (Corps) for incorrectly claiming jurisdiction over private property. The Corps had claimed a piece of property owned by Hawkes Company, and used by Hawkes to harvest peat, was a “waters of the United States” which requires a federal dredge and fill (404) permit under the Clean Water Act.

In March 2016, NCBA filed an amicus brief with the U.S. Supreme Court to support Hawkes’ private property rights and argue that jurisdictional determinations should be reviewable by courts. In a resounding victory, the Supreme Court ruled unanimously in favor of Hawkes, setting a precedent that landowners may challenge the Corps’ jurisdictional determinations. The case was then remanded back to the district court for a final decision on the facts, which found the Corps failed to prove that a WOTUS was present on Hawkes’ land.

“This week’s district court decision is the cherry on top of a significant legal victory for landowners,” said Scott Yager, NCBA environmental counsel. “This case highlights the subjectivity of how the agencies determine the presence of a WOTUS. It also gives landowners the option to use the courts for impartial review when confronted with questionable WOTUS determinations. Before Hawkes, the Corps had a rubber stamp on WOTUS determinations.”

The Hawkes case involved three companies engaged in mining peat in Minnesota. Due to the difficulty inherent in determining the need for a 404 permit, the Corps allows property owners to obtain a jurisdictional determination if a particular piece of property contains a WOTUS and therefore requires a 404 permit before using the land. Upon receiving an approved jurisdictional determination that their land did contain a WOTUS, the companies exhausted the administrative remedies available and then filed suit in Federal District Court challenging the Corps’ jurisdictional determination.

“Not only is the Hawkes decision a significant victory itself, it adds to the momentum of getting the flawed WOTUS rule fixed” said Yager. “NCBA is litigating the WOTUS rule, lobbying Congress, and working closely with the new administration to roll back this flawed rule.” 

Landowner Wins Case against Army Corps

WASHINGTON (Jan. 27, 2017) – Earlier this week, landowners scored a victory when a federal district court ruled against the Army Corps of Engineers (Corps) for incorrectly claiming jurisdiction over private property. The Corps had claimed a piece of property owned by Hawkes Company, and used by Hawkes to harvest peat, was a “waters of the United States” which requires a federal dredge and fill (404) permit under the Clean Water Act.

In March 2016, NCBA filed an amicus brief with the U.S. Supreme Court to support Hawkes’ private property rights and argue that jurisdictional determinations should be reviewable by courts. In a resounding victory, the Supreme Court ruled unanimously in favor of Hawkes, setting a precedent that landowners may challenge the Corps’ jurisdictional determinations. The case was then remanded back to the district court for a final decision on the facts, which found the Corps failed to prove that a WOTUS was present on Hawkes’ land.

“This week’s district court decision is the cherry on top of a significant legal victory for landowners,” said Scott Yager, NCBA environmental counsel. “This case highlights the subjectivity of how the agencies determine the presence of a WOTUS. It also gives landowners the option to use the courts for impartial review when confronted with questionable WOTUS determinations. Before Hawkes, the Corps had a rubber stamp on WOTUS determinations.”

The Hawkes case involved three companies engaged in mining peat in Minnesota. Due to the difficulty inherent in determining the need for a 404 permit, the Corps allows property owners to obtain a jurisdictional determination if a particular piece of property contains a WOTUS and therefore requires a 404 permit before using the land. Upon receiving an approved jurisdictional determination that their land did contain a WOTUS, the companies exhausted the administrative remedies available and then filed suit in Federal District Court challenging the Corps’ jurisdictional determination.

“Not only is the Hawkes decision a significant victory itself, it adds to the momentum of getting the flawed WOTUS rule fixed” said Yager. “NCBA is litigating the WOTUS rule, lobbying Congress, and working closely with the new administration to roll back this flawed rule.” 

WESTERN MONTANA GRAZING AND AG CONFERENCE (WMGAC) TO BE HELD IN MISSOULA

Held Thursday and Friday, Feb. 9th and 10th at the DoubleTree Inn in Missoula, the Western Montana Grazing and Ag Conference (WMGAC) will bring together over 25 speakers!  Researchers, resource specialists and agricultural producers at both local and regional levels will be represented!  The conference will feature keynote speakers, educational concurrent sessions and panel discussions.  Food will be served including a light breakfast and full lunch both days and a social at Kettlehouse Brewery with BBQ dinner on Thursday night!  All this for $50 if registered before January 31stor $75 thereafter.  This is a great opportunity to learn about local agricultural innovation and connect with many of Montana’s exceptional farmers and ranchers! The full agenda for the conference can be found HERE.  The WMGAC will feature many opportunities to “pick your poison” by attending the events that most interest you and your operation. Ranchers and Farmers, large and small, resource professionals, landowners, gardeners and interested community members are encouraged to attend!
To register online: Lake County CDOr Send a check to:Lake County Conservation District64352 US Hwy 93Ronan, MT  59865 For Questions, Please Call:Heidi Fleury, Lake County Conservation District: (406) 676-2841 ext. 102,  lakecountycd@ronan.netBen Montgomery, Ronan NRCS Office: (406) 676-2841 ext. 111, ben.montgomery@usda.gov

U.S. feedlots brought in 18.0 percent more cattle in December than the year-earlier month

U.S. feedlots brought in 18.0 percent more cattle in December than the year-earlier month, the U.S. Department of Agriculture said on Friday, which topped forecasts and reached a six-year high for that month.Higher prices for slaughter-ready, or cash, cattle last month improved profit for feedlots. That allowed them to draw more animals off winter wheat grazing pastures in parts of the U.S. Plains, said analysts.Some ranchers pulled heavy calves off pastures to avoid potential illness and death loss from the onset of wintry weather.Additionally, more heifers entered feeding pens driven by the prolonged period of dwindling profit among cow/calf operators.Cattle placed in commercial feeding pens last month could begin arriving at packing plants in June, which could pressure cattle prices at that time, said Allendale Inc chief strategist Rich Nelson.USDA's report showed December placements at 1.795 million head, a substantial increase from 1.527 million in December 2015. That was above analysts' average forecast of 1.655 million and the highest for that month since 1.8 million in December 2010.The government put the feedlot cattle supply as of Jan. 1 at 10.605 million head, about 100 percent of a year ago at 10.575 million. Analysts, on average, had forecast a 1.0 percent decline.The government said the number of cattle sold to packers, or marketings, grew 7.0 percent in December from a year earlier, to 1.787 million head.Analysts had projected a 6.7 percent rise from 1.674 million last year."We had a bullish trend occurring in December with cattle prices, and last month's placements may have been the result of low placements in September and October," said Nelson.David Anderson, a Texas A&M University economist, attributed December's huge placements to mild fall and early winter weather in parts of the Northern Plains, which kept a large number of cattle out on pasture due to supportive cattle prices."In early December, the situation changed and winter hit. It forced some ranchers to sell a lot of heavy calves," said Anderson.Friday's report included quarterly numbers for heifers on feed as of Jan. 1 at 3.58 million head, up from 3.4 million a year ago.This suggests slower herd expansion after cow/calf producers suffered a long stretch of lower profits, said Anderson.Analysts viewed the report as bearish for CME live cattle on Monday because of the larger-than-anticipated placement outcome. 

Washington Insider: Border Adjustment Tax Proposal Heats Up

There's a lot of attention on U.S. borders just now, with talk of immigration and new barriers intensifying. In addition, Bloomberg says, the chief tax-law writer in the U.S. House, Kevin Brady, R-Texas, chairman of the House Ways and Means Committee is engaged in a public-relations "blitz" aimed at selling border tax adjustment plan to Republican skeptics.That task likely will not be easy, Bloomberg says, based on the early reviews from the GOP retreat in Philadelphia. Brady's idea is to tax imports but not export. The plan is supported by House Speaker Paul Ryan, R-Wis.In fact, the "border-adjustment" idea is key to a House GOP blueprint for overhauling individual and corporate taxes. The "adjustment" concept would generate sufficient revenue to allow generous income tax-rate cuts across the board, Bloomberg says, and cites the conservative Tax Foundation.The additional revenue could make the tax cuts "revenue neutral," a requirement under current Senate rules for passage of a tax bill without Democratic votes.Beyond that, though, Brady argues that a border-adjustment approach is vital for U.S. businesses to regain their competitiveness."There are severe consequences to the U.S. We will fall behind our competitors and jobs will suffer" without it, Brady told the Republican retreat in Philadelphia. He has touched on similar themes in speeches to the U.S. Chamber of Commerce and the Financial Services Roundtable over the past few days, Bloomberg notes.Still, many Republicans say they are undecided, caught between likely winners like aircraft manufacturers and other net exporters and net importers such as retailers like Wal-Mart Stores Inc. who import large amounts of products.In addition, the President told the Wall Street Journal recently that Brady's border adjustment approach is "too complicated." He wants "a direct tax on goods produced by U.S. companies that move jobs overseas" instead.Brady said his colleagues are "working hard" to win Trump's approval. On Wednesday, he met for 90-minutes or so with Senate Finance Chairman Orrin Hatch, R-Utah, whose committee handles tax legislation on the Senate side, and who hasn't taken a position on the border-adjustment approach.Hatch said he will "need to see the legislative text and have a better understanding of how this would be structured before being able to weigh in on whether it's something he can get behind," Julia Lawless, a spokeswoman said.During the session, which also included Representative Peter Roskam, R-Ill., and Senator Rob Portman, R-Ohio, members were told that without the offsets from border adjustment, tax rates would have to be higher than most Republicans want.While Ryan is a strong supporter of border adjustment, Senate Majority Leader Mitch McConnell, R-Ky., is not and insists that any tax overhaul be revenue neutral.Senator Rand Paul, R-Ky., said he hasn't made up his mind. "We have some companies in our state saying it would be good for them and we have others saying it wouldn't be so good for them," he said. "So I haven't made a final opinion, other than that the tax burden for the country overall should be less."Other opponents include the conservative group Club for Growth, which has labeled border adjustments a "middle-class consumer tax." Koch Industries, a traditional ally of GOP leaders, has warned of "devastating" consequences for the economy.The National Retail Federation is lobbying against a border adjustment, arguing on its website that it could make retailers' tax costs "three to five times larger" and "dramatically drive up the price of imported merchandise."Still, Brady supporters include anti-tax activist Grover Norquist and Rep Charlie Dent, a Pennsylvania Republican. They told reporters this week that border adjustments were "on the table" and preferable to punitive tariffs.However, Democrats, already unlikely to support the tax cuts that Republicans want, are also skeptical of border adjustment. "I don't think it works," Senator Ben Cardin, D-Md., said calling the approach a "consumption tax." Senator Ron Wyden, R-Ore., the top Democrat on the Finance Committee, also told Bloomberg he was unpersuaded, saying that it could end up hitting American consumers. "There certainly are a lot of questions about how you would do this," Wyden said. "Are we going to get taxed on the essentials that the working class buys?"If you think it is strange to see mainline Republicans working to raise taxes -- you would be right; except for the argument that the tax would be used to offset lower rates elsewhere. However, that argument also faces the criticism that the border adjustment tax would be levied on products nearer the consumer end of the supply chain, while the proposed tax cuts likely would benefit corporations and high income individuals.Still, no one ever said tax policy would be easy. Clearly, the tax policy debate has serious implications for many producers and should be watched closely as it proceeds, Washington Insider believes.

Will Trump Team Resurrect COOL for Beef, Pork?

Whether the Trump administration would resurrect mandatory Country of Origin Labeling (COOL) for ground and muscle cuts of beef and pork is a the question some are asking following President Donald Trump's "American First" slogan and reports that some members of Trump's advisory panels favor such labeling.Contacts advise there has been "some" mention of COOL by those on Trump advisory panels, but those sources indicate that is extent of the situation at this stage.The U.S. COOL issue was settled with Canada and Mexico via a WTO dispute settlement panel ruling leading the U.S. to withdraw its previous proposal that Canada and Mexico found wanting. If the U.S. were to resurrect COOL, Canada and Mexico could retaliate immediately if they disliked the approach based on the WTO panel decision.A return of COOL is not likely based on sources in Congress and observers of the Trump administration in its early days.

Japan Hesitant to Invite China into TPP

Japan isn’t enthusiastic about inviting China into a pacific-rim trade deal abandoned by the U.S.A., fearing increased clout from Beijing and loosening the standards on what it calls “the gold standard for trade rules.” Government officials don’t appear in a hurry to begin two-way trade talks with Washington, although some officials said they can’t rule it out. The Japanese Prime Minister said he won’t comment on trade talks with the U.S. until President Trump’s cabinet has been chosen and eventual policies become clearer. Australia and New Zealand said they hope to save the Trans-Pacific Partnership by asking China and other countries to join in. Chile has invited the ministers from TPP countries, along with China and South Korea, to a summit in March to discuss how the deal can move forward, which won’t happen after U.S. withdrawal without changing the rules of the deal.

Americans to Eat 1.33 Billion Chicken Wings

American consumption of what’s becoming a Super Bowl weekend staple, chicken wings, is expected to hit 1.33 billion wings. That number comes from a National Chicken Council Report and represents a two percent jump, or about 30 million wings, over last year’s report. It’s 6.5 percent higher, or 80 million wings, over the 2015 Wing Report. To get an idea of how many wings that is, if you laid 1.3 billion wings end to end, they would stretch from Gillette Stadium in Massachusetts to the Georgia Dome in Atlanta almost 80 times. To put it another way, 1.33 billion wings weighs over 166 million pounds, 338 times more than the combined weights of all 32 NFL teams. As New England gets set to face Atlanta, those two regions eat their share of wings. Patriots country in the northeast U.S. eats 12 percent more wings than other regions in the country, while down south in Falcons country they eat 13 percent more than other regions.

Bill Would Move H2A Program to USDA

A bill introduced earlier this month into the House of Representatives (H.R. 281) is titled the Family Farm Relief Act, dealing specifically with immigration. Politico’s Morning Ag Report says the legislation is sponsored by New York Republicans Elise Stefanik and Chris Collins and would move the H2A immigration program from the Department of Labor to the Department of Agriculture. Stefanik says the program would “be in the hands of those who best understand the specific needs of our farms.” The bill would also let applicants fill out an application online or a paper application. It would require a more user-friendly online system. The bill would bring an end to “burdensome requirements on advertising and prevailing practice surveys.” The legislation would let farm cooperatives and other agriculture groups apply for workers for their members. The dairy and livestock industries have struggled with the H2A program and this legislation aims to make the system more workable for both groups. Stefanik represents a rural district in New York that has a large number of dairy farms. Collins is one of the closest allies on Capitol Hill of President Donald Trump.

NAWG/USW Winter Conference in DC January 30 – February 2

The National Association of Wheat Growers and U.S. Wheat Associates will be holding their annual Winter Conference in Washington, DC, beginning next Monday and concluding on Thursday.  The conference promises to include in-depth debate within NAWG’s policy committees about Farm Bill programs and continuing discussions that have been occurring to establish priorities for the next Farm Bill.  NAWG and USW will also hold meetings of their Joint Biotechnology Committee and Joint International Trade Policy Committee, and their full boards will convene a joint board session on Thursday to continue their collaboration on a variety of policy issues.  The conference will conclude Thursday afternoon with NAWG and USW both holding their respective board meetings.

On Wednesday, wheat farmers from across the country will hit the Hill to discuss with their Members of Congress the difficult economic conditions in rural America, the importance of maintaining a strong safety net, the role that voluntary conservation programs play in protecting the environment and helping farmers be more productive, the need for regulatory reform, and several funding priorities for FY 2017 and FY 2018 agriculture appropriations.  That evening, the groups will hold a reception hosted by BNSF Railway.

NAWG extends special appreciation to BNSF, Syngenta, and WestBred for their generous support of the Winter Conference.  NAWG and the National Wheat Foundation also thank Bayer for their generous support of NWF’s Wheat Organization Leaders of the Future program, which will be taking place immediately preceding the Winter Conference.  

Senate Agriculture Committee to Hold First Field Hearing in February

On Wednesday, Senate Agriculture Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI) jointly announced that the Committee would hold its first field hearing of the 115th Congress on February 23, 2017 in Manhattan, KS.  The intention of the hearing will be to hear from farmers about how Farm Bill programs have been working for them.  The announcement of this hearing is further indication that Congressional efforts to reauthorize the Farm Bill will be beginning quickly.  As NAWG will be holding its Winter Conference next week in Washington, DC, we urge producers to come to the meeting ready to discuss and debate priorities for the upcoming reauthorization process.  

The Trans-Pacific Partnership (TPP) trade deal cannot proceed without the United States, Canada said on Tuesday

The Trans-Pacific Partnership (TPP) trade deal cannot proceed without the United States, Canada said on Tuesday, even as Australia and New Zealand pledged to salvage it.U.S. President Donald Trump withdrew from the 12-nation TPP on Monday, following through on an election promise days after his inauguration."This agreement was so constructed that it can only enter into force with the United States as a ratifying country," Foreign Affairs Minister Chrystia Freeland told reporters in Calgary. "So the TPP as a deal cannot happen without the United States being a party to it."Earlier on Tuesday, Australia and New Zealand said they hoped to save the deal by encouraging China and other Asian countries to join the trade pact.Canadian farmers produce far more grain, oilseeds and meat than the country can consume, and some farm groups had hoped to see the deal proceed."It’s disappointing," said Robin Speer, executive director of Western Canadian Wheat Growers. "We know trade improves productivity, innovation and supply chains, and helps drive economic growth."Canada is one of the world's biggest exporters of wheat, beef and pork.Ranchers were hoping to expand beef exports to Japan under lower tariffs included in TPP, said Dennis Laycraft, executive vice-president of Canadian Cattlemen's Association. Laycraft said Canada should now focus on a trade deal with Japan.Canadian dairy farmers, who operate in a tightly controlled system that manages supplies and price, have raised concerns about competing against more imports allowed under trade pacts. Dairy Farmers of Canada spokeswoman Isabelle Bouchard said the group has never opposed trade deals themselves, however.Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said the Canadian auto sector, especially small- and medium-sized companies, will escape a threat from foreign competitors if TPP dies. The trade agreement would have allowed parts and autos to enter Canada duty-free with just 30 percent to 45 percent of their content produced by a TPP nation, Volpe said.

Wholesale food prices are sharply lower across several categories

Wholesale food prices are sharply lower across several categories, including wholesale beef prices, which are trading 18% lower than at this time last year.Despite those lower prices, prices for beef – and other food items – have not declined accordingly at grocery retailers and foodservice outlets. The Bureau of Labor Statistics says that while grocery store food prices have declined for eight consecutive months, the price of food products sold by retailers is just 2.2% lower than a year ago, although retail beef prices are about 7% lower than last year.Foodservice prices, however, have barely responded to lower wholesale food prices. Prices for food consumed away from home in December were 2.3% higher than a year earlier.Industry analysts say foodservice prices tend to be less volatile and stickier than those at retail grocery stores. That’s due to a variety of reasons, including the fact that foodservice outlets have some processing and cooking steps, while retailers sell fresh products. Analysts also say foodservice outlets continue to struggle with rising labor costs, health care costs and distribution costs.Whatever the reason for the widening gap between grocery store and foodservice costs, analysts believe the net effect is more traffic for grocery stores, and that should be a positive trend for beef as it has good exposure at retail outlets and still holds a favored position among consumers. 

MSU Extension Pulse Production Workshop February 15 in Conrad and Fort Benton

MSU Extension will be hosting a Pulse Production workshop Wednesday, February 15, 2017, in both Conrad and Fort Benton.  With decreased commodity prices in cereal grains, there is additional interest in raising pulse crops.  However, many production and marketing challenges exist, which this workshop will address for beginning producers.  The workshop will cover production, marketing, insurance, disease management, and common mistakes with chemicals and inoculants and conclude with a producer panel. Both locations will begin with registration at 8:30 a.m. and will conclude by 4 p.m.  The Conrad workshop will be held at the Pondera Shooting Sports Complex, 972 Granite Road, Conrad, and the Fort Benton workshop will be held at the Ag Center, 1205 20th Street.  Dr. Perry Miller, Land Resources and Environmental Sciences professor at Montana State University will lead participants through an interactive pulse crop production based discussion.  The presentation will cover necessary field preparations and seeding recommendations, growing season management, and equipment and techniques necessary for safely handling pulse crops during harvest.  He will also provide recommendations for crop rotations when using pulses.  Dr. Miller was awarded an Excellence Award as a Researcher from the Northern Pulse Growers Association in 2009 and was named an American Society of Agronomy Fellow in 2014.

Jeff Winkler, Mountain View Cooperative Pulse Specialist, will cover the need for and proper use of inoculants and chemicals.  Jeff will explain the common mistakes that he’s seen regarding inoculant and chemical use, and share tips on how to prevent those mistakes in the field.  Jeff has 10 years of hands-on experience with pulse crop agronomy and merchandising, and been working in agriculture business for 20 years. Chrissy Cook will bring her expertise to the pulse workshop to discuss markets and contracts. She will also talk about different pulses and varieties, and their current demand in the marketplace. Chrissy is a native of Colorado and graduated from Colorado State University with her Bachelors of Science and Master’s degrees. She currently works for Hodgkiss Seed in Choteau, MT. Hodgskiss Seed is a family owned and operated seed business established in 1968. They are growers, processors, and retailers of foundation, registered, and certified seed.
The insurance portions will be covered by Kevin Swanson of Leavitt Insurance, in Conrad, and by Shawn Fladager from Northwest Farm Credit Services Insurance of Great Falls, at the Fort Benton workshop.  The speakers will cover availability of insurance products for pulse producers and how those products can help producers manage risk. For farmers with no history of pulse production, it is important to know how to determine insurable yields and how to protect their investment in a new crop. Dr. Jessica Rupp, MSU Extension Plant Pathologist, will cover diseases identification and management of pulse crops.  North Dakota and Canadian farmers are already facing numerous disease challenges in their pulse crops, and Dr. Rupp will provide education for best management practices to prevent these diseases from making it to the Golden Triangle.  Some additional topics that will be covered include rotation guidelines for disease management and options available for seed treatments and foliar fungicides. Both locations will conclude with a producer panel of local pulse crop producers sharing their experiences and tips and tricks they’ve learned through growing pulse crops with the day wrapping up by 4 p.m. Pesticide points have been applied for and lunch will be available on site at cost.  For any questions regarding the event or to RSVP, please contact Tyler Lane (MSU Extension – Chouteau County, 622-3000, tyler.lane@montana.edu) or Shaelyn Meyer (MSU Extension – Pondera County, 271-4054, shaelyn.meyer@montana.edu).  Please RSVP by Friday, February 10, to ensure an accurate headcount for lunch. 

Court Puts WOTUS Cases on Hold

OMAHA (DTN) -- The U.S. Court of Appeals for the Sixth Circuit in Cincinnati has put the legal fight on the waters of the United States, or WOTUS, rule on hold pending a review by the U.S. Supreme Court, according to an order handed down Wednesday.

The U.S. Supreme Court last week granted a request to hear a legal challenge by the National Association of Manufacturers and other plaintiffs as to whether the appeals court is the proper venue for a number of lawsuits filed against the rule. That appeals court ruling had led to more than 100 cases being consolidated in the Sixth Circuit. Although the high court granted the petition, the case does not get to the merits of the rule itself.

On Monday, the plaintiffs asked the appeals court to put the cases on hold, especially in light of the Trump administration's recent actions on federal regulations. Earlier this week, the administration issued a regulations freeze.

"Continuing with costly and burdensome briefing and appendix preparation while the Supreme Court considers whether this court has jurisdiction over the petitions is especially unnecessary in light of the new administration's repeated promises to reconsider the WOTUS rule," the plaintiffs said in a court motion filed Monday.

"The new administration's statements raise the possibility that, even assuming the Supreme Court holds that this Court has jurisdiction, this court will never need to address the current rule in the current procedural posture."

Farm groups have been closely monitoring the legal challenges to the controversial rule change to the Clean Water Act, which the groups see as a major expansion of EPA authority. At least 30 states and multiple industries have sued in cases across the country.

The Sixth Circuit has placed the rule on hold nationally. A number of lawsuits were filed in district courts across the country.

Thirteen states sued EPA over the rule in the U.S. District Court for the District of North Dakota, where originally those states received a stay on the rule. The Sixth Circuit Court of Appeals issued a national stay while considering the legal merits of additional multiple cases filed there.

A February 2016 ruling by the Sixth Circuit indicated a split among three justices about whether it was correct to use a pesticide sprayer case, National Cotton Council v. EPA, as a precedent for determining questions of jurisdiction. In the 2009 National Cotton Council case, the Sixth Circuit threw out an EPA rule that would have exempted pesticides sprayed on water from the Clean Water Act rules.

Instead, the decision led to states requiring farmers across the country to get permits to spray pesticides. There are 22 petitions for review involving more than 150 petitioners, according to court documents from the Sixth Circuit.

The WOTUS rule was touted by the EPA as a means to clarify which areas around waterways the federal government has authority to either require a federal permit or stop any activity that would disturb the waterway. Opponents claim the rule would give the regulatory agencies broad authority over basic farming practices simply because water may pool somewhere after a rain or fill a ditch.

The Sixth Circuit stayed the rule nationally in October 2015, pending its review.

Agricultural and other industry groups were unconvinced legal challenges to the rule should be heard by the Sixth Circuit. Judges in that court have indicated in previous rulings they may be sympathetic to those groups that claim the rule is a flawed federal overreach. However, opponents of the rule fear that if legal challenges to the WOTUS rule are tried in the wrong jurisdiction, any rulings could face appeals.

U.S. Ag Group Signs $300 Million Algeria Deal

An Algerian company recently signed a deal with an American farm group to set up $300 million in agricultural projects in the country. Algeria’s Ag Minister says the north African country is seeking to reduce its dependence on imports. A privately-owned Algerian dairy company signed the deal with the American international Agriculture Group to develop agricultural projects that include cereals, potato, fertilizers, along with dairy and feed projects. A Reuters report says Algeria imports most of its ag-related products due to weak domestic output. It’s looking to diversify the economy by adding farm products and getting away from oil and gas products after a drop in the price of oil hit state finances. The company also approved a new law allowing incentives for foreign and local firms that are willing to invest in the non-oil sectors of the economy. As the OPEC member nation struggles to diversify the economy, oil and gas profits still account for 60 percent of the state budget and 95 percent of the country’s exports.

Perdue Confirmation Hearing Not Set

The Senate Agriculture Committee likely won’t have a hearing on Sonny Perdue’s nomination until mid-to-late February. Politico’s Morning Agriculture Report says it’ll take that long for Perdue’s financial disclosures to be analyzed in case of potential conflicts of interest and to finish an FBI background check. Financial disclosure paperwork questions have led to delays in the confirmation of other Cabinet nominees, including Education Secretary Betsy DeVos. Perdue’s financial statements from his run for Georgia governor in 2006 show he was worth about $6 million and his businesses about $2.8 million. He is a founder of Perdue Partner’s LLC, a global trading firm that helps companies to export ag products like grains, nuts, produce, and alcohol, in addition to industrial supplies, pet food, and cosmetics. He’s also owned several grain-and-feed-processing and transportation companies. 

Global beef exports are expected to increase year over year in 2017

Global beef exports are expected to increase year over year in 2017 with growth in several major beef exporting countries supported by growing production in most cases.  However, the situations vary among beef exporting countries and market conditions will keep international markets dynamic for the foreseeable future.  Beef exports from the top four exporting countries (Brazil, India, Australia and the U.S.) are projected in 2017 to account for 73 percent of total exports from the top ten beef exporting countries.Brazil and India, with roughly equal beef export totals, are projected to lead the world in beef exports in 2017. Both countries are experiencing growing production and growing international market demand and access.  Brazil, which has a dominant position in European and Middle Eastern markets is seeing increased access to China as well as the U.S.  Late in 2016, the U.S. and Brazil announced an agreement that would allow Brazil to export fresh or frozen beef to the U.S. along with cooked product. Brazilian exports have also been boosted by the currency weakness of the Real.  India has also seen growing production and international demand for Indian beef, much of which is carabeef (water buffalo).  Recent announcements indicate that India has an agreement with China for direct access to the Chinese market.  Previous Indian beef shipments to China were transshipped through other countries such as Vietnam.Australia has slipped to the number three beef exporting country as the extended herd liquidation through 2015 (which resulted in temporarily higher exports in 2014 and 2015) is now resulting in reduced beef production and exports.  Low cattle inventories, combined with herd rebuilding on better forage conditions, will suppress beef production and exports in 2017 and beyond.  Australia has enjoyed expanded beef market access in China and most recently began shipping live cattle to China as well.The U.S. will maintain its rank as the number four beef exporting country in 2017.  Beef exports increased in 2016 (after dropping in 2015) as production increased and beef prices dropped from record levels.  Improved beef exports are projected for 2017 despite the headwind of a continued strong dollar.  However, considerable uncertainty surrounds potential changes in trade policy that may accompany the Trump administration.  Renegotiating the North American Free Trade Agreement (NAFTA) exposes the beef industry to less favorable trade conditions while the apparent demise of the Trans-Pacific Partnership (TPP) will maintain restricted U.S. access or less favorable tariffs in some markets, most notably Japan.  The U.S. does not currently have direct access to the rapidly growing Chinese beef market.  Unofficial U.S. beef exports to China have occurred in recent years as transshipments through Hong Kong and Vietnam.  In the fall of 2016, China announced a willingness to move forward with an agreement for the U.S. to export beef to China.  However, no agreement is in place at this time and the current status of these discussions is unclear given the political changes in the U.S. and the confrontational posture of the Trump administration towards China.The next tier of beef exporting countries are significantly smaller in export volume compared to the top four beef exporting countries.  These include, in descending order based on projected 2017 exports: New Zealand, Canada, Paraguay and Uruguay. Combined beef exports from these four countries are smaller than the total of either Brazil or India. Each of these countries is expected to maintain or expand beef exports in 2017.  Mexico, with beef exports that have expanded sharply in recent years, ranks as the number ten beef exporting country just behind the European Union. Mexican beef exports are expected to continue growing in 2017 with significant expansion of Mexican feedlot and beef packing infrastructure in 2016. The majority of Mexican beef exports are imported by the U.S.  

January’s fed cattle rally has helped boost cattle feeding margins

January’s fed cattle rally has helped boost cattle feeding margins to $172 per head, according to the Sterling Beef Profit Tracker. Last week’s 5-area direct price of $122 represented a $3 increase, and helped secure the ninth consecutive week of average feedyard profitability.Packers had their worst profit week in months, with margins declining $29 per head to $19. Much of that decline was due to higher fed cattle costs and a $1 per cwt drop in the beef cutout, which ended the week of Jan. 13 at $190.97.The total cost of finishing a steer last week was $1,525, compared with $1,537 the week before and $2,068 last year. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.A month ago cattle feeders were earning $136 per head, while a year ago losses were calculated at $202 per head. Feeder cattle represent 76% of the cost of finishing a steer, compared to 80% last year.Farrow-to-finish pork producers earned $16 per hog last week, about $6 more than the week before. A month ago farrow-to-finish pork producers lost about $8 per head.Pork packers saw their margins decline $6 per head to $22. Negotiated prices for lean hogs were $65.19 per cwt. last week, about $2.76 per cwt. higher. Cash prices for fed cattle are $12 per cwt. lower than last year and prices for lean hogs are about $8 higher than last year.Sterling Marketing president John Nalivka projects average cash profit margins for cow-calf producers at $144 per cow for 2016. In 2017, Nalivka projects cow-calf profits of $43 per cow. Estimated average cow-calf margins were $432 per cow in 2015. 

Trump Signs Executive Order To Support Keystone XL Pipeline

(DTN) -- The Trump administration signed an executive order Tuesday to support the Keystone XL pipeline that was shelved by a series of legal challenges and rejection of a presidential permit from the previous administration.The Trump administration Tuesday signed executive orders to open the door for building the Keystone XL and Dakota Access pipelines. (DTN file photo by Chris Clayton)Environmental groups, farmers and ranchers fought TransCanada for years to stop the building of a 2,000-mile pipeline that would carry 830,000 barrels of bitumen oil per day from Alberta, Canada, to the Gulf of Mexico. Their concern was the pipeline would pass through sensitive habitats across the Nebraska Sandhills and they feared any pipeline breaches could harm the environment. Also, TransCanada planned to use eminent domain with about 2% of landowners to acquire the land needed to build the pipeline, upsetting those who were potentially affected.In addition, a second executive order moves forward the Dakota Access pipeline that has faced extensive protest and opposition from Native American and environmental groups. The Dakota Access pipeline would run from North Dakota to Illinois. Dakota Access requires a permit from the U.S. Army Corps of Engineers, while the Keystone XL needs a presidential permit.TransCanada said it would reapply for a permit for Keystone."We are currently preparing the application and intend to do so," the company said in a statement to DTN."KXL creates thousands of well-paying construction jobs and would generate tens of millions of dollars in annual property taxes to counties along the route as well as more than $3 billion to the U.S. GDP (gross domestic product). With best-in-class technology and construction techniques that protect waterways and other sensitive environmental resources, KXL represents the safest, most environmentally sound way to connect the American economy to an abundant energy resource."Meanwhile, TransCanada is still continuing with a complaint filed against the United States in June 2016, claiming the more than seven-year delay before rejecting the Keystone XL pipeline route through South Dakota and Nebraska was in violation of the North American Free Trade Agreement. The company is seeking through a NAFTA tribunal $15 billion in damages as a result of lost revenues.FARMER REACTION VARIESArt Tanderup farms 160 acres just north of Neligh, Nebraska, that would have been in the pathway of the Keystone pipeline. Tanderup said he refused to sign an easement with pipeline developer TransCanada and his farm became a rallying point for people opposed to the project."As a farmer and landowner on the rejected Keystone XL route, I was extremely disappointed to hear that the Trump administration is pursuing it again," he told DTN in an email.Tanderup raises corn, soybeans and rye on his eastern Sandhills farm sitting atop the Ogallala Aquifer. He said several years ago his operation launched no-till farming and planting cover crops to prevent erosion on his land where the aquifer sits close to the surface."Needless to say, there is a massive amount of clean water in a very porous environment," he said. "Placing a 36-inch tar sands pipeline through this fragile environment provides numerous risks ... For farmers, taking land for private gain through eminent domain is a big issue. How can a foreign corporation take American farmland for their corporate benefit? ... We will continue to work to prevent the construction of KXL."Mark Rohrich, a sunflower farmer from south-central North Dakota, lives within 30 miles of the Dakota Access pipeline route. In a Twitter exchange with DTN, Rohrich said the ongoing protests and delay in the project have hurt his state."My biggest joy is the move for the Dakota Access to completion," he said."This has been a burden on our state and needs a completion that will no doubt help North Dakota in moving its oil. I am also glad that we will get the Keystone back on track to move both Canadian and U.S. oil and help with energy independence."Rohrich said the Dakota Access route would run within 30 miles west of his property, so his land is unaffected."I am satisfied with these newer pipeline safety measures which are no doubt better than they ever have been," he said."It is more about the economic windfall for our state in boosting oil production on wells that are already there. And extra revenue for our state carries into keeping ag research funded as well as infrastructure. We live across the state from what was the oil boom, but I know there were people who resided in our town that did travel to work there."EXECUTIVE ORDERSThe Obama administration rejected the Keystone XL permit although the U.S. State Department study gave the project a green light. Regarding Trump's executive order, a number of media outlets reported Tuesday the Keystone project would be subject to renegotiated terms.Trump also signed an executive order Tuesday directing pipelines to be built using American steel."We are -- and I am -- very insistent that if we're going to build pipelines in the United States, the pipe should be made in the United States ... unless there is difficulty with that because companies are going to have to sort of gear up," Trump said during the signing. "Much pipeline is bought from other countries. From now on we're going to start making pipeline in the United States."Jane Kleeb, president of Bold Alliance, an environmental activist group that fought against Keystone XL for years, said Trump should instead stand up for property owners."Nebraska farmers and ranchers need a president standing up for property rights and our clean water to produce American food," she said in a statement to DTN."Foreign tar sands pipelines headed to the export market have no place in the Heartland. There is no application for Keystone XL and there never has been an approved route in Nebraska. The president should focus on American energy independence rather than taking land away from farmers using eminent domain for private gain."American Petroleum Institute President and Chief Executive Officer Jack Gerard lauded Trump's actions."We are pleased to see the new direction being taken by this administration to recognize the importance of our nation's energy infrastructure by restoring the rule of law in the permitting process that's critical to pipelines and other infrastructure projects," Gerard said in a statement."Critical energy infrastructure projects like the Keystone XL and the Dakota Access pipelines will help deliver energy to American consumers and businesses safely and efficiently."NEWS WELCOMEDHouse Energy and Commerce committee Chairman Rep. Greg Walden, R-Oregon, House Subcommittee on Energy Chairman Rep. Fred Upton, R-Mich., and House Subcommittee on Environment Chairman Rep. John Shimkus, R-Ill., offered the following statement:"We welcome today's news and we're looking forward to working with a president and an administration that value American energy affordability, jobs, security, and new infrastructure development," they said. "It is time for the federal government to stop picking winners and losers in the energy sector."National Association of Manufacturers President and Chief Executive Officer Jay Timmons said in a statement the pipelines are good for the economy."President Trump has wasted no time in boosting our manufacturing economy," he said. "As I discussed with President Trump in his office last June, building the Keystone XL and Dakota Access pipelines is simply the right thing to do -- for working families, for energy security, for job creation and for our future. That is why broad coalitions of businesses and labor groups alike have supported construction."CONTINUING TO FIGHT PIPELINESOil Change International, an anti-oil advocacy group, proclaimed in a statement Tuesday the pipelines would not be built."Both the Keystone XL and Dakota Access pipelines will never be completed, no matter what President Trump and his oil-soaked cabinet try to do," said David Turnbull, campaigns director."Trump's first days in office saw massive opposition, marking the beginning of four years of resistance to his dangerous policies. We stopped Keystone XL and Dakota Access before and we'll do it again. These are fights Trump and his bullies won't win."The Progressive Change Campaign Committee said the order would harm landowners."Big oil and billionaires are running the White House," the group said in a statement."By pushing the Keystone XL and Dakota Access pipelines, Trump is siding with corporations and Wall Street over working families, ranchers and indigenous communities. This is a disaster for ordinary Americans and a disaster for the environment." 

Dupont Pushes Back Merger Closing Date

(Dow Jones) -- DuPont Co. pushed back the closing date for its merger with Dow Chemical Co., as European antitrust authorities scrutinize the companies' agricultural businesses.DuPont Chief Executive Ed Breen said the companies are negotiating potential divestitures in their pesticide operations to win approval for the deal, which would create an industrial behemoth worth nearly $129 billion.The deal, announced in December 2015, has faced delays as antitrust regulators sought reams of information concerning the companies' competing businesses in insecticides, weedkillers and crop seeds. Dow and DuPont initially expected their deal to close late last year, but Mr. Breen told analysts Tuesday it is now unlikely to be completed until after March."The main concern is in the crop protection area," Mr. Breen said on a conference call discussing DuPont's fourth-quarter results. "That's where we've been focused with a remedy package."Mr. Breen said the negotiations also concern some research and development commitments to soothe competition authorities' concerns that farmers could be left with fewer product choices, and a slimmer pipeline of new seeds and sprays."One of the reasons we're doing the merger is to create a new ag company with more resources in new product development," Mr. Breen said.DuPont and Dow aim to unite their vast portfolios of chemicals, crop seeds, plastics and electronic components, eliminate $3 billion in annual costs and split into three separate companies within about 18 months. One company will be focused on agriculture, another on materials, and the third on specialty products like food ingredients and safety equipment. Mr. Breen said Tuesday the regulatory delays hadn't changed the cost-cutting target or the timeline for the breakup.The companies are pursuing their deal amid global challenges facing industrial and agricultural companies. Regulators also are evaluating proposed agricultural deals between Bayer AG and Monsanto Co., and China National Chemical Corp. and Syngenta AG.DuPont expects the U.S. dollar to continue strengthening in 2017, Chief Financial Officer Nick Fanandakis said, making U.S.-made products more expensive abroad. Meanwhile developing economies like Brazil have stalled and political uncertainty in the European Union is growing.DuPont forecast first-quarter 2017 earnings would fall 18% but increase 8% on an adjusted basis. The past year's cost-cutting efforts are paying off, Mr. Breen said, but DuPont's agricultural division will suffer as U.S. farmers plant fewer acres of corn this year in favor of soybeans, a smaller business for the company.Shares of DuPont gained 1.5% early in Tuesday's trading session.DuPont reported an overall profit of $353 million or 29 cents a share for the quarter, compared with a loss of $421 million, or 26 cents a share, a year earlier. Excluding items, the company earned 51 cents a share, up from 27 cents.Revenue dropped 2% to $5.21 billion. Analysts polled by Thomson Reuters had forecast earnings of 42 cents on $5.29 billion in revenue. 

Non-Browning Genetically Engineered Apple to Reach Stores Next Month

The first genetically engineered apple variety will reach store shelves next month after years of development and protest. A limited “test run” release of the non-browning Arctic Apple branded fruit is expected to find its way to select Midwest grocery stores in February. The apple variety has been genetically modified to eliminate the browning that occurs when an apple is left out in the open air. Genetic engineering advocates tell the Washington Post the apple could be a turning point in the debate over genetically modified organisms. While genetic modifications have in the past been mainly defended as a way to protect crops, the Arctic Apple would be one of the first GMOs marketed directly to consumers. The founder of the company marketing the Arctic Apple says: “We see this as less about genetic modification and more about convenience.” 

TPP Member Nations Seek to Save Trade Agreement

Trans-Pacific Partnership member nations are hoping to salvage the trade deal after U.S. President Donald Trump withdrew the United States from the agreement by executive order. Fulfilling a campaign pledge, Trump signed the order this week, pulling the U.S. out of the massive trade deal. Both Australia and New Zealand remain hopeful the deal can be salvaged without the United States. Both nations talked with Japan on continuing the agreement, according to Reuters. Australia’s Prime Minister said the U.S. withdrawing from the deal is “a big loss,” but added there is potential for China to join the agreement. China has proposed a counter pact, the Free Trade Area of the Asia Pacific and has championed the Southeast Asia-backed Regional Comprehensive Economic Partnership. Meanwhile, TPP requires ratification by at least six countries accounting for 85 percent of the combined gross domestic product of the member nations. A meeting between the remaining TPP nations is expected in the coming months, according to a New Zealand trade official.

Trump Freezes EPA Grants and Communications

The Donald Trump administration has ordered a freeze on grants and contracts from the Environmental Protection Agency and ordered EPA staff to halt external communications. A memo to EPA staff instructs the employees not to publish press releases, blog messages or social media postings. The memo also says media request will be carefully screened and no new content can be placed on any EPA website. Political analysts say the move is not uncommon, but further overreaching than a typical freeze by a new administration, according to the Huffington Post. The EPA awards roughly $4 billion in grant funding each year. President Trump and his transition team have promised a reduction of regulatory grasp by the EPA, specifically targeting Clean Air Act regulations and the Waters of the U.S. rule.

Agricultural Research Service Receives Communication Guidance

An internal email sent to the Agricultural Research Service allegedly directs the department not to release any public facing documents, but the Department of Agriculture says the email “was flawed” and that new guidance would be issued to replace it. According to Reuters, the email was sent Monday, the first business day of the new Donald Trump administration. The email directed ARS staff not publish press releases, photos, fact sheets or social media content until further notice. A similar memo was sent to staff of the Environmental Protection Agency. However, in a statement, USDA said peer-reviewed scientific papers from the unit should not be blocked, adding that ARS “is committed to maintaining the free flow of information between scientists and the American public." The Agricultural Research Service is tasked with scientific research info issues facing agriculture, including long-term climate change

GIPSA, Organic Livestock Rules, Suspended for Review

The Donald Trump administration has suspended all new or pending regulations from taking effect for 60 days to allow for review by new leadership. For agriculture, that means the organic livestock welfare rule announced in the final week of the Obama administration will be suspended for at least another 60 days, along with the Grain Inspection, Packers and Stockyards Administration regulations announced last month. At the least, the suspension adds 60 days to all pending regulations before taking effect or resuming a comment period in the Federal Register. The organic welfare rule would set strict guidelines for raising organic livestock. The GIPSA rules refer to the practices of poultry and meat processors relative to the farmers that supply them with live animals

2016 Biodiesel Market Skunks Previous Records

U.S. consumers saw a record of almost 2.9 billion gallons of biodiesel and renewable diesel in 2016, outpacing the previous record by nearly 40 percent. Also for the first time, the monthly market topped 300 million gallons, with December’s numbers coming in at 362 million gallons. The National Biodiesel Board welcomed the numbers but says that success is undermined by imports. Imports provide more than a third of the U.S. biodiesel market. Figures by the Environmental Protection Agency show the 2.9 billion gallons represented an 800 million gallon increase of biodiesel and renewable diesel from 2015.  At the same time, domestic production rose from about 1.4 billion gallons in 2015 to more than 1.8 billion gallons in 2016, well below available capacity, according to NBB. Imports increased by more than 50 percent from an estimated 670 million gallons in 2015 to over one billion gallons in 2016, which the Biodiesel Board says shortchanges potential economic benefits to U.S. producers. 

133 Organizations Send President A Letter Pledging To Work to Modernize NAFTA

A total of 133 organizations and companies from the food and agriculture sector, which supports more than 15 million jobs nationally, sent President Donald J. Trump a letter this week expressing their eagerness to work with his Administration to modernize the North American Free Trade Agreement (NAFTA), while preserving and expanding the gains achieved to date.“U.S. food and agricultural exports have produced a trade surplus for nearly 50 years,” the letter notes.  “Consistent growth over this period resulted in over $130 billion worth of exports, which created $423 billion in U.S. economic activity in 2015.”  The letter also noted that in the 20 years since NAFTA was implemented, the market integration it fostered helped quadruple the value of U.S. food and agricultural exports to Canada and Mexico.“With a few key sector exceptions that still require attention, North America intraregional food and agriculture trade is now free of tariff and quota restrictions….,” the letter continues.  “Because of these market access gains, the food and agricultural sectors of the North American region have become far more integrated, as is evidenced by rising trade in agricultural products and substantial levels of cross-border investment in the agriculture and food sectors….[W]e look forward to working with your Administration on reducing the non-tariff trade barriers that continue to inhibit our exports to the NorthAmerican marketplace, as well as to addressing the remaining tariffs impeding access for some U.S. export sectors.” 

U.S. Fish and Wildlife Service Proceeds with Regulatory Action Despite Trump Administration Directive

WASHINGTON (Jan. 24, 2017) – In a move that some believe violates the spirit of President Donald Trump’s recent directive freezing all agency regulatory activity, the U.S. Fish and Wildlife Service has indicated that it will decline to extend a 90-day comment period to evaluate the status of the Lesser Prairie Chicken under the Endangered Species Act. This denial comes despite the soon expected public release of a new population survey for the species by the Western Association of Fish and Wildlife agencies – information that will be critical to determining the success of ongoing conservation actions.NCBA President Tracy Brunner said the decision denies stakeholders the opportunity to weigh in with thoughtful comments and the most up-to-date science, and places political pressure ahead of what’s best for the species.“The incoming Trump administration acted immediately to freeze just this kind of exclusionary regulatory process. We believe FWS is violating the spirit of that presidential order to placate radical environmental groups bent on listing the Lesser Prairie Chicken,” said Brunner. Significant conservation efforts have already been undertaken across millions of acres over five states to improve habitat and diminish threats to the Lesser Prairie Chicken. The LPC Range-wide Conservation Plan, which has resulted in a 25 percent increase in the population of Lesser Prairie Chicken from 2014 to 2015, has been consistently ignored by the administration despite being a prime example of what the FWS says that it wants – landscape scale conservation efforts.In 2014, after FWS ignored the conservation efforts and forced a listing of the bird, the U.S. District Court for the Western District of Texas overturned the Administration’s listing calling it arbitrary and capricious.The Western Association of Fish and Wildlife Agencies is currently compiling its 2016 LPC Range-wide Conservation Plan Annual Progress Report. As it has for the last couple of years, the report will provide critical information regarding LPC conservation activities related to the Range-Wide Plan.“We believe it is critical that the FWS postpone action and consider the report – and provide the public opportunity to comment on the report – before taking any further action toward a final determination on the listing of the species,” said Brunner. “It is inconsistent with the spirit of the regulatory freeze for FWS to ignore their obligation to consider the best available science, shutout stakeholders, and thus allow a fringe movement to advance a purely political agenda. Further, FWS should respect the wishes of the incoming President and allow time for review of controversial regulatory initiatives held over from the Obama Administration. ” 

Cattlemen Express Concerns With Trump Administration's Trade Action"Sparking a trade war with Canada, Mexico, and Asia will only lead to higher prices for American-produced beef in those markets," NCBA Says

 WASHINGTON (Jan. 23, 2017) -- Tracy Brunner, President of the National Cattlemen’s Beef Association, today released the following statement in response to President Trump’s announcement that he is withdrawing the United States from the Trans Pacific Partnership (TPP) trade deal and may seek to take action on the North American Free Trade Agreement (NAFTA): “TPP and NAFTA have long been convenient political punching bags, but the reality is that foreign trade has been one of the greatest success stories in the long history of the U.S. beef industry.“Fact is American cattle producers are already losing out on $400,000 in sales every day because we don’t have TPP, and since NAFTA was implemented, exports of American-produced beef to Mexico have grown by more than 750 percent. We’re especially concerned that the Administration is taking these actions without any meaningful alternatives in place that would compensate for the tremendous loss that cattle producers will face without TPP or NAFTA.“Sparking a trade war with Canada, Mexico, and Asia will only lead to higher prices for American-produced beef in those markets and put our American producers at a much steeper competitive disadvantage. The fact remains that 96 percent of the world’s consumers live outside the United States, and expanding access to those consumers is the single best thing we can do to help American cattle-producing families be more successful.” 

Trump Signs Executive Order to Remove U.S. From TPP

President Donald Trump Monday followed through on a campaign promise by signing an executive order to remove the U.S. from the Trans-Pacific Partnership trade agreement. Trump also said he plans to begin renegotiating the North American Free Trade Agreement with Canada and Mexico. Agriculture groups demonstrated disappoint with the decision. American Soybean Association President Ron Moore said in a statement: “TPP held great promise for us.” Moore says ASA expects “to see a plan in place as soon as possible” to engage the 11 other TPP member nations on trade to “capture the value” lost from the withdrawal. American Farm Bureau President Zippy Duvall says it is critical the new administration “begins work immediately” to develop new markets for agriculture. National Cattlemen’s Beef Association President Tracy Brunner said: “Sparking a trade war with Canada, Mexico, and Asia will only lead to higher prices for American-produced beef in those markets.” Brunner called foreign trade one of the greatest success stories for U.S. beef. The American Feed Industry Association condemned the action, saying trade deals like TPP are key to setting the terms and rules for future trade relationships