Poll Shows Free Trade Support is Growing

A new poll by the Wall Street Journal shows an increase in support for free trade in the United States. The growing support comes despite anti-trade sentiments by President Donald Trump and his removal of the U.S. from the Trans-Pacific Partnership, along with intent to renegotiate the North American Free Trade Agreement. The poll last week found that 43 percent of Americans surveyed thought positively of free trade between the U.S. and foreign countries, while 34 percent of respondents thought free trade hurt the country. The results represent a sharp reversal from a similar poll from March of last year. That poll found just 27 percent of Americans favored free trade, and 43 percent said free trade harmed the nation. Increasingly positive views of the net benefits of trade came mainly from Democrats, as 57 percent of them said free trade helped more than hurt, up from 34 percent in 2016.

Mexico Won’t Negotiate New Tariffs in NAFTA

Mexico issued a warning to the United States over the weekend, saying if any North American Free Trade Agreement renegotiations include new tariffs, the nation’s trade leaders would “get up from the table.” Mexico’s Economy Minister said the country “refuses to even discuss the kind of tariffs President Donald Trump” has suggested, according to Bloomberg. Trump wants to build a border wall and impose a 20 percent tax on imports from Mexico, along with another possible tax on automobiles. Without NAFTA, the U.S. and Mexico would be subject to stricter tariff limits by the World Trade Organization, if both countries choose to be WTO compliant. The U.S. is the biggest trading partner for Mexico, but the nation has trade deals with 40 other countries and is accelerating trade talks with Brazil and Argentina, two possible sources to replace corn purchases from the United States. Trade officials from Mexico have said they expect NAFTA talks to start in June.

Ag Groups Ask Trump to fill USDA Trade Role

A group of 29 agricultural and food organizations, including the National Pork Producers Council, last week urged the Donald Trump administration to fill a key trade position within the U.S. Department of Agriculture. The groups penned a letter to the president, urging him to fill the position quickly. The organizations asked that an Under Secretary for Trade and Foreign Agricultural Affairs be appointed. The position was established in the 2014 Farm Bill, but the Obama administration never filled the post. “Such a position will bring unified high-level representation to key trade negotiations with senior, foreign officials and within the Executive Branch,” according to the letter.

CoBank Loan Volume Up 10 Percent

CoBank says loan volumes increased in 2016, as did the bank’s net income. CoBank is a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States. In its financial results for 2016, the bank says net income for the year rose one percent to $945.7 million, reflecting increased net interest income offset by a greater provision for loan losses, as well as higher Farm Credit insurance fund premiums. Net interest income increased by seven percent to $1.4 billion, as a result of higher loan volume and increased earnings. Meanwhile, CoBank's average loan volume increased 10 percent in 2016, to $91.6 billion, driven by higher levels of borrowing from affiliated Farm Credit associations, grain cooperatives, food and agribusiness companies, rural electric cooperatives and communications service providers.

New Research Challenges 2050 Agriculture Production Needs

New research suggests the world's agricultural production may not need to double by 2050, but offered a wide range in what the increase in production may need to be. Penn State University researchers say production likely will now need to increase between 25 percent and 70 percent to meet 2050 food demand. The first “double production by 2050” claim originated in 2005, some 12 years ago. Since that time, researchers say agricultural production has increased. However, much of the research announced by Penn State University focused mostly on what researchers say is an “out of balance” narrative in agriculture, between food production and ensuring a healthy environment. The researchers say agriculture needs quantitative targets for both food and environmental impacts to “clarify the scope of the challenges” agriculture will face in the coming decades.

Atrazine Reregistration to Begin Next Year

Renewing the registration of Atrazine, the most popular herbicide in the United States, will start next year. The University of Missouri Extension says more than 500,000 farmers use atrazine to control grass and broadleaf weeds on 50 percent of the country's cornfields. Atrazine's last registration received approval in 2003. The Environmental Protection Agency reviews products every 15 years after a lengthy process that often involves public opinion and scientific data. Closer scrutiny of atrazine use comes when it appears in drinking water supplies at higher rates than allowed by EPA. The University says farmers can do their part to help minimize scrutiny over atrazine and prevent runoff by applying atrazine when weather conditions are right and using proper land management practices. University officials also say, if atrazine is running off fields and into water systems, it also means farmer are losing money and weed control. 

Mexico’s top trade negotiator doubled down on threats to break off talks to rework NAFTA

Mexico’s top trade negotiator doubled down on threats to break off talks to rework NAFTA, saying his country will walk away if the U.S. insists on slapping duties or quotas on any products from south of the border.“The moment that they say, ‘We’re going to put a 20 percent tariff on cars,’ I get up from the table,” Mexican Economy Minister Ildefonso Guajardo said in an interview. “Bye-bye.”This doesn’t mean, Guajardo emphasized, that Mexico would be looking to scrap NAFTA. But by saying it refuses to even discuss the kind of tariffs President Donald Trump has long trumpeted, the country is ratcheting up the pressure on U.S. negotiators and effectively daring them to pull out of the 23-year-old pact.Trump has lambasted the accord -- which also includes Canada -- as unfair and responsible for a “massive” imbalance favoring Mexico. It last year shipped $294 billion worth of goods north while the U.S. sent $231 billion south.Mexican officials have said they expect official talks to start in June. And if they fail? “It wouldn’t be an absolute crisis,” said Guajardo, who headed the Nafta office of the Mexican embassy in the U.S. in the early 90s, when the pact was being written and implemented.Tariff TalkWithout Nafta, trade between Mexico and the U.S. would be ruled by World Trade Organization strictures limiting tariffs either country can impose on the other, with the average for Mexico at around 3 percent, according to the Mexico City-based political-risk advisory firm Empra. That “would take away some of our margin of competitiveness,” the minister said, but would be manageable.One thing that could help mitigate the impact is the tumble in the peso. It’s plunged 25 percent against the dollar in the past two years, swelling profit margins for exporters.As things stand now, most products go back and forth duty free; automobiles, televisions sets and some other goods have to contain a certain amount of content sourced in North America to get full NAFTA benefits. But there’s been a lot of talk in Washington about taxing imports.White House spokesman Sean Spicer in January floated the idea of a 20 percent levy on goods from Mexico to pay for a border wall. That trial balloon went up after Mexican President Enrique Pena Nieto canceled a trip to the American capital in response to Trump’s repeating a campaign pledge about charging Mexico for the cost of building the wall.Pandora’s BoxSome Republicans in Congress have called for what they refer to as a border-adjustment tax, affecting all countries, to help finance cuts in the corporate income tax. During the campaign, Trump was a fan of a 35 percent tax on auto imports from Mexico.Guajardo said part of the reason his country is unwilling to consider any new Nafta duties is because of a possible domino effect. “Opening the door to tariffs is very dangerous, because it’s like opening Pandora’s box -- the lines of people asking for protectionism in Washington would reach to Maryland, and in Mexico City they’d reach to Puebla.”The border-adjustment tax, he said, is something that’s squarely a domestic fiscal matter for the U.S. He also said it would be complicated to implement, and would no doubt result in mirror changes from other nations that would aim to level the playing field. Washington’s going that route “would require a crazy amount of control on the origin of merchandise and inputs.”TPP InviteThe U.S. is by far Mexico’s biggest single trading partner. But Mexico has pacts with more than 40 other countries, and has been accelerating free-trade talks with Brazil and Argentina after changes in those nations’ governments have them looking more favorably on open markets.In Brazil in particular, Mexico sees what Guajardo called “very, very high potential” in areas including automobiles. “I’m not going to negotiate with Brazil for its pretty face. I’m going to negotiate with Brazil because they’re going to open their car-manufacturing market,” said the minister, who has overseen negotiations for the Trans-Pacific Partnership and is working to update the country’s free-trade agreement with the European Union.Mexico is also seeking to have TPP members join the Pacific Alliance, which includes Chile, Peru and Colombia. TPP nations have been invited to participate in the Latin American group’s meeting in March, Guajardo said. In one of his first acts as president, Trump pulled the U.S. out of the Pacific trade deal, designed to knit together almost 40 percent of the global economy.For all his tough talk, Guajardo was optimistic the U.S., Mexico and Canada could come to terms on revamping Nafta. “I think there is a way to find a very good agreement that will be a win-win for the three countries,” he said.And while Trump has called NAFTA the worst trade deal ever, Treasury Secretary Steven Mnuchin said last week that he’s not worried about trade relations with Mexico and also sees a “win-win” result that can come out of Nafta talks.Guajardo said he wants talks to wrap up early in 2018. Otherwise, “we’d be irresponsibly injecting uncertainty after uncertainty because of the U.S. mid-term election and the presidential election in Mexico.” Mexicans go to the polls to choose a president in July 2018, and the U.S. mid-terms are that November. 

State officials are investigating claims that a south-central Idaho dairy pumped manure into a canal

State officials are investigating claims that a south-central Idaho dairy pumped manure into a canal, and tests are being conducted on water coming from faucets in nearby homes where residents are complaining the water is discolored and has a bad odor.4 Bros. Dairy intentionally pumped material from the 10,000-cow dairy into the canal, Lynn Harmon of the Big Wood Canal Company in Shoshone told The Times-News in a story on Saturday. "Apparently, this wastewater has found its way into the drinking water," Harmon said.The South Central Public Health Department on Wednesday ordered homes within a 20-mile radius of the dairy to boil water.Dairy owner Andrew Fitzgerald didn't return a call from the newspaper.The Idaho Department of Environmental Quality, Idaho State Department of Agriculture and the Environmental Protection Agency are investigating. Tap water from 20 homes is being tested.Casey Kelley, fire chief with the Shoshone City Rural Fire Protection District, said he took water samples Wednesday at the district's fire station in the area of concern."It came out positive for e-coli bacteria and chloroform," Kelley said. "The water has a definite light green color and a definite smell. We've never had the smell or color before."Harmon said the dairy had runoff that flowed into canal that was incidental because of flooding, but he said the dairy also pumped material into the canal.He said he ordered the dairy to stop pumping into the canal and notified the Idaho Department of Agriculture and the Lincoln County Sheriff's Office.Sheriff Rene Rodriguez, after sending deputies to the dairy, notified county emergency coordinator Payson Reese, the South Central Public Health Department and the Idaho Department of Environmental Quality.About 40 domestic wells are in the area of concern that extends into eastern Gooding County, Lincoln County Commissioner Rebecca Wood said. 

President Donald Trump signed an executive order on Friday requiring federal agencies to establish task forces aimed at cutting federal regulations considered to be "costly" and "unnecessary,"

(DTN) -- President Donald Trump signed an executive order on Friday requiring federal agencies to establish task forces aimed at cutting federal regulations considered to be "costly" and "unnecessary," according to the president's order. This perhaps will open the door for the elimination of a number of environmental regulations the agriculture industry has said hurt farmers and ranchers, including the waters of the United States, or WOTUS, rule. Trump's first executive order calling for the elimination of two regulations for every new regulation, already faces a legal challenge by the Natural Resources Defense Council. Don Parrish, senior director of regulatory affairs at the American Farm Bureau Federation, said it's not likely the president can eliminate the WOTUS rule through executive order. Instead, actual changes to the regulation would have to be done by Congress. The WOTUS rule currently has been stayed by a federal court. The U.S. Supreme Court sometime this year is expected to consider a jurisdictional challenge on WOTUS, even before a court would get to the merits of the rule. The president's order on Friday requires every agency to establish a regulatory reform task force to "eliminate red tape." "Each regulatory reform task force will evaluate existing regulations and identify candidates for repeal or modification," the order says. "Each agency's task force will focus on eliminating costly and unnecessary regulations. To hold the task forces accountable, agencies will measure and report progress in achieving the president's directives." According to a news release from the White House, "the regulations from the last administration cost American taxpayers $873 billion in total" in finalizing more than 3,000 regulations. In a speech before the USDA Agricultural Outlook Forum earlier this week in Arlington, Virginia, AFBF President Zippy Duvall said federal regulations are hurting agriculture. "We should not allow regulations to strangle our economy or strangle the innovation and optimism our nation needs," he said. "Many of our farmers are at a breaking point in terms of generating income to cover the cost of production. Increased regulation raises that cost of production, and farmers and ranchers simply cannot bear that burden in today's ag economy." In his first speech, EPA Administrator Scott Pruitt said earlier this week that he believes environmental protection and economic growth can go hand in hand. "I believe that we as a nation can be both pro-energy and jobs, and pro-environment," he said. "We don't have to choose between the two. I think our nation has done better than any nation in the world at making sure that we do the job of protecting our natural resources, and protecting our environment, while also respecting economic growth." The president's executive order received mixed reaction. In a statement to DTN, the American Sustainable Business Council said it was concerned about how far federal agencies will go. "Regulations exist for a reason," ASBC Chief Executive Officer David Levine said. "Critical standards and safeguards protect businesses and the public from a range of real risks and threats that markets cannot adequately address. In addition, good regulations encourage innovation, a key ingredient to a robust economy. Let's not lose those vital benefits. Innovation and accountability should be the guideposts. This executive order is misguided. What businesses need are a level playing field and regulatory compliance assistance." American Petroleum Institute President and Chief Executive Officer Jack Gerard said the order was a good step. "In the past few years, our industry has faced a regulatory onslaught with 145 new rules and regulations aimed at hindering the development of our nation's energy resources," he said. "Today's action by President Trump will unleash innovation across the nation, and it will allow our economy to grow, help lower energy costs for consumers, and help American workers." Environmental interest group Waterkeeper Alliance said in a statement the administration's actions may threaten clean water. "On the heels of Steve Bannon declaring that the Trump administration selected particular cabinet nominees to intentionally destroy their federal agencies, President Trump signed an executive order today setting up 'regulatory reform officers' and 'task forces' within the agencies to help carry out the destruction of regulations," the group said. "The harsh words the administration chose to describe its agenda are intentional and must be taken seriously. Stopping regulatory 'overreach' is one thing, but destroying agencies and regulations that, for example, ensure the tap water your children drink doesn't contain pollutants that cause cancer or brain damage, is outrageous and immoral." Trump signed the new executive order, according to a pool press report, with the CEOs of a number of companies, including Dow Chemical, Archer Daniels Midland, 3M and Campbell Soup. "Excessive regulations are killing jobs, driving companies out of our country like never before," Trump said. "Every regulation should have to pass a simple test: Does it make life better or safer for American workers or consumers. If the answer is 'no,' if the answer is 'no,' we will be getting rid of it and getting rid of it quickly. We will stop punishing companies for doing business in the United States."   

Sonny Perdue is Waiting for Confirmation

During a farm bill field hearing last week, Kansas Republican Senator Pat Roberts said: “Sonny Perdue is just waiting.” The Senate Agriculture Committee chairman says his committee has not received the required paperwork from the White House yet to schedule a confirmation hearing for Perdue. Insiders with the Department of Agriculture have hinted that a confirmation hearing and vote is likely in early-to-mid March. Perdue was the final Cabinet selection for President Donald Trump, with Trump announcing the selection the day before being sworn into office. Roberts appears eager to perform and wrap-up the confirmation process for Perdue so the committee can focus on other confirmation hearings of lesser USDA post and farm bill discussions.

AFBF President Addresses USDA Ag Outlook Forum

“This could be the best of times…and possibly the worst of times in agriculture,” according to American Farm Bureau Federation President Zippy Duvall, who spoke last week at the Department of Agriculture’s Ag Outlook Forum. He told the attendees: “there are some early indications that it could be the worst,” according to the Hagstrom Report. His remarks were addressing what he called “the elephant in the room,” being President Donald Trump. Expressing concerns about trade and immigration, specifically aggressive action on deportation, Duvall said: “this could cost $60 billion in agriculture production.” Duvall called for a workable guest worker program run by USDA. Meanwhile, Duvall pointed to AFBF’s priorities for the year and the ‘best of times’ outlook for agriculture, being getting serious on immigration, tax, and regulatory reforms, providing much-needed relief for farmers

NFU: Trump Administration Building Positive Record on Renewable Fuels

Stressing the need for certainty around the administration’s support for the renewable fuels industry, the National Farmers Union recognized the Donald Trump Administration’s growing positive record in support of renewable fuels. The National Farmers Union calls the support a reaffirmation that renewable fuels are a means to spur economic growth, provide good-paying jobs, and benefit American family farmers, ranchers, and rural economies. In a recent letter to ethanol industry leaders, President Trump acknowledged that renewable biofuels are critical to his vision for American energy. Farmers Union President Roger Johnson said: “It is important for his administration to build a positive record on renewables, and provide much-needed certainty to the industry.” President Trump has indicated he wants to cut unnecessary regulations that hinder growth of the biofuels industry, and Johnson says “we stand behind this notion.”

USDA Increases Fiscal Year 2017 Specialty Sugar TRQ

The Department of Agriculture Friday announced an increase in the fiscal year 2017 specialty sugar tariff-rate quota, or TRQ. The increase of 40,000 metric tons-raw value is needed to accommodate the growing domestic demand for organic sugar and other specialty sugars, according to USDA. The sugar will be permitted entry into the United States beginning March first. In May of last year, USDA established the fiscal year 2017 refined sugar TRQ at 162,000 metric tons-raw value. 141,000-some metric tons was reserved for the importation of specialty sugars as defined by the Office of the U.S. Trade Representative.

State COOL Legislation Fails in South Dakota

The South Dakota legislature has stopped a move to require country-of-origin labeling on beef sold within the state. Only 13 senators voted in favor of rewriting the state’s COOL law, according to online publication Meatingplace. While those in favor of the law say consumers have the right to know, voters against the bill say federal regulations would supersede an amended South Dakota law. South Dakota’s State Cattlemen’s Association also said the measure would not be enforceable. The U.S. repealed COOL in December 2015 after Canada and Mexico convinced the World Trade Organization that the rule was discriminatory and violated international trade laws. The South Dakota Stock Growers Association supported the measure, along with the South Dakota Farmers Union.

Analysts say Bacon Shortage Not Likely

Despite record low U.S. pork belly inventories, analysts say a bacon shortage is not likely. In early February, the Ohio Pork Council fueled alarms by publicizing that pork belly stocks were at their lowest levels in half a century. While the group added there was not an actual bacon shortage, several media outlets published reports suggesting otherwise. Market analysts tell Reuters more supply will soon be available. Industry analysts attributed low belly stocks to prolonged demand for bacon, as well as a decline in physical storage by speculators after the demise of Chicago Mercantile Exchange belly trading pit. The Department of Agriculture data for January on pork bellies, from which bacon is made, put total stocks at 14 million pounds. It was a record-low for the month and down four million pounds from the December record. Analysts say there’s no worry for a shortage, though, because hog slaughter totals are expected to rise four percent through the spring, and commercial pork production for 2017 is expected to increase by five percent, compared to last year. 

The United States Department of Agriculture reported this week that dairy cow slaughter was up 16,000 head over December

The United States Department of Agriculture reported this week that dairy cow slaughter was up 16,000 head over December, a jump of 6.3%.And culling through federally inspected slaughter plants was also up 3,500 head over January, 2016. However, January 2017 had one more business day than a year ago. So on a daily basis, January 2017 over a year ago slaughter actually declined about 465 head per day, or about 3.5%.Total cattle slaughter was up 9.2% over a year ago, and on a daily basis, up 4.3%. 

Wheat exports seem to be robust despite record world wheat supplies and a relatively strong dollar, according to the USDA

Wheat exports seem to be robust despite record world wheat supplies and a relatively strong dollar, according to the USDA.The department is expecting wheat exports to exceed expectations calling for a 50 million bushel increase in the 2016 and 2017 marketing year.That forecast includes both hard red spring wheat and hard red winter wheat.USDA says export demand is helping prices, but it’s still below the 5- and 10-year average.Some analysts say high quality and strong protein demand is the bull behind the wheat market.“A lot of countries, because they haven’t been able to get their typical 11 to 12 percent protein winter wheat out of the United States, they’ve had to buy 14 percent protein to do a lot of the blending,” said Tregg Cronin of Halo Commodities. “A lot of countries that don’t usually buy spring wheat like Venezuela and Egypt because their quality wasn’t the greatest, we’ve been exporting spring wheat to Canada.”Cronin says the U.S. is looking at declining stocks of spring wheat and building bushels of winter wheat. 

Diary Exports Soar In Second Half Of 2016

Dairy Exports: Despite industry challenges including strong competitors and unfavorable exchange rates, exports soared through the second half of 2016. In fact, the US Dairy Export Council says the second half of last year posted one of the “best second halves” in history. According to the industry group, the volume of major products grew 15% over the last six months, compared to the final half of 2015. “The 996,000 tons exported from July-December was second only to 1 million tons shipped in the second half of 2013—the current peak year for U.S. dairy exports,” USDEC says. Among the stars of 2016 are cheese, nonfat dry milk powder, whole milk powder and whey, which was by far the best performer. Total U.S. whey shipments grew 33% from July-December, driven by record shipments to China, USDEC reports. During the same time frame, whey enjoyed a price advantage over the EU. Similarly USDEC reports cheese and butter prices becoming more competitive last fall. Will the U.S. export market remain strong throughout 2017? Possibly. “Prospects for continued U.S. export volume gains are mostly positive,” USDEC reports. “U.S. pricing is better aligned with the world market, and the United States remains the only major supplier with excess product to sell.” However, caution is advised. Following last year’s price run-up, global markets are in a lull USDEC says. "Buying interest has waned, particularly from more price-sensitive importers,” they says. “Heavy EU stockpiles of SMP (352,000 tons in Intervention, equivalent to 1.5% of annual EU milk production) are casting a long shadow on the market.” In addition, the strong U.S. dollar and soft oil prices are depressing purchasing power around the world. 

Appropriations Letter Shows Widespread Support for USDA Wildlife Services

The American Sheep Industry Association, along with 205 additional livestock, aviation, sportsmen, civil, conservation and commodity stakeholders, sent a letter to U.S. House and Senate appropriations committee and subcommittee members urging their continued support for USDA Wildlife Services. ASI President Mike Corn, said this letter shows the broad impact WS has on the U.S. economy. 

"For sheep producers, the Wildlife Services predation management program is critically important to our ability to maintain profitability and protect the safety of our flocks," said Corn. "Wildlife Services' efforts go far beyond just protecting the livestock industry. Its work keeps Americans safe in the air through their aviation program, protects rural and urban civil infrastructure, protects critical wildlife habitat for recreation and keeps our food supply safe by working with aquaculture, dairy and commodity row crop producers." 

Wildlife causes more than $12.8 billion in damage each year to natural resources, public infrastructure, private property and agriculture. WS works to prevent, minimize or manage this damage and protect human health and safety from conflicts with wildlife. 

"Every year, Wildlife Services is called to do more, often with fewer resources available," said Corn. "In 2016, the agency conducted over 67,000 technical assistance projects to reduce wildlife damage to property across the country; including schools, homes, roads, airports and utility systems. That is a 4 percent increase over 2015. While Wildlife Services has over 3,000 cooperative agreements to help cost-share many of these projects, we will work to ensure this program has the federal resources they need." 

ASI is asking Congress to fully fund USDA Wildlife Services in the fiscal year 2017 and 2018 appropriations process.  

Daines to Lead Montana Ag Summit 2017 Ag Chairman Pat Roberts to Deliver Keynote Address

U.S. SENATE —U.S. Senator Steve Daines today announced that he will be spearheading the Montana Ag Summit 2017 in Great Falls this spring.     The summit, sponsored by Daines, will take place in Great Falls on May 31 and June 1, 2017. U.S. Senator Pat Roberts, the Chairman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry will deliver a keynote address at the summit.     “The summit will highlight our state’s number one economic driver by bringing together agricultural leaders to discuss how to keep our agricultural heritage strong for generations to come,” Daines stated. “Farmers and ranchers are the backbone of Montana’s economy and I look forward to a Montana family conversation about the future of agriculture.”     Audio of Daines’ statement is available for download HERE.     Chairman Pat Roberts: “I am pleased to travel to Montana with one of our Committee’s newest members, Senator Daines, to speak at his Agriculture Summit. I appreciate Senator Daines’ hard work and enthusiasm for promoting and serving farmers and ranchers. His leadership on behalf of Montana’s rural constituents will serve his home state well during the 115th Congress.”     The Montana Ag Summit will bring the nation’s agricultural leaders to Montana’s Golden Triangle. The focus of the summit is on strengthening international relationships for Montana agriculture, showcasing technological advancements, promoting the next generation of farmers and ranchers, and discussing the challenges of federal policies and regulations.     John Youngberg, Montana Farm Bureau Federation Executive Vice President: “We are excited that Senator Daines has chosen to host an Agriculture Summit in Montana. Senator Daines understands the importance of agriculture to Montana's economy and we appreciate that he is bringing this great opportunity to our state.”      Lola Raska, Executive Vice President of the Montana Grain Growers Association: “The 2017 Montana Ag Summit offers an exciting opportunity to meet with some of our nation’s key ag leaders, who will be speaking on issues important to the Montana growers who work hard to provide food for their families and for the world’s consumers. We owe a big thank you to Senator Steve Daines for setting a place at the table for our farmers and ranchers and for his recognition of agriculture’s importance to Montana’s economy.”     Errol Rice, Montana Stockgrowers Association Executive Vice President: “The Montana Ag Summit will provide a great platform to discuss the opportunities and challenges facing Montana’s farmers and ranchers. The Montana Stockgrowers Association is enthusiastic about participating and thanks Sen. Daines for his ongoing work on behalf of Montana’s ranchers and for bringing ag leaders from across the state and nation to Great Falls for the summit.”     John Rauser, President, Montana Pork Producers Council: “Montana Pork Producers are looking forward to participating in the Montana Ag Summit sponsored by Senator Daines. A tremendous portion of pork produced in the U.S. Is exported overseas, including hogs supplied by Montana hog farms. We are a part of the global market, and we want to be a proactive member involved in markets domestically and internationally. The Montana Ag Summit 2017 will be hosted at the Montana ExpoPark Pacific Steel & Recycling Arena in Great Falls.”     Kim Murray American Pulse Association Board Montana Pulse Advisory Committee: “Pulse crop acres have increased dramatically in recent years bringing with it new jobs and an excitement for the future of agriculture in our great state of Montana. Having Senator Daines placed on the Senate Ag Committee along with being on the Senate Appropriations Committee is huge for Montana farmers and ranchers. Thank you for hosting the Montana Ag Summit and for all you do for Montana. We look forward to working with you going forward.”     Dave McEwen, President of the Montana Wool Growers Association – Galata: “The Montana Wool Growers Association is pleased and excited to participate in the Montana Ag Summit, which is set to be hosted by Senator Daines in Great Falls in late Spring 2017.  Montana’s agriculture producers are leaders in their communities and in philanthropy , leaders in developing innovative agriculture commodities and land conservation practices, and leaders in producing food and fiber that cloth and feed the world.  As such, the Association is particularly excited that Senator Pat Roberts, Chairman of the Senate Agriculture Committee will be coming to Montana as part of that event to directly hear the legislative priorities of Montana’s agriculture producers and to see our producers in their own fields   Since his election to Congress, Senator Daines has been a steadfast supporter of Montana’s biggest economic generator, agriculture, and this Summit is just another way the Senator is making agriculture and natural resources a priority.”      Webb Brown, CEO, Montana Chamber of Commerce: “We’re excited to work with Senator Daines to focus on the backbone of Montana’s economy – agriculture.  From family farms to high-tech operations, we’ll examine the challenges and opportunities in Big Sky Country.  Join us!”     Krista Lee Evans, Executive Director of Montana Agricultural Business Association: “Agriculture in Montana continues to face multiple challenges from multiple angles and we welcome the opportunity to meet with our nations key agricultural leaders.  The Montana Agricultural Business Association commends Senator Daines and his ongoing support for agriculture and its importance in Montana. We look forward to participating in the 2017 Montana Ag Summit.”      Larry Hendrickson, Liberty County Commissioner, Chair of the MACO Ag Committee: “It is very exciting to have Senator Daines hosting the Montana Ag Summit in Great Falls.  It is a great opportunity for local Ag producers to have input on the upcoming farm bill.  I hope to see you there!”     Daines serves as a member of the U.S. Senate Committee on Agriculture, Nutrition and Forestry and is the Chairman of the Conservation, Forestry and Natural Resources Subcommittee.     To register and for more information please visit www.agsummitmontana.com.    

2017 Montana Legislature Week 8 Update

On Tues, Feb 21, MGGA Treasurer Lyle Benjamin testified before the Senate Ag Committee in opposition to SB 247, a bill that would prohibit the use of neonicotinoid insecticides. In his testimony, Benjamin noted that the active ingredient in neonicotinoids is the only product available to Montana grain producers to target wireworms, which can cause extensive economic damage to farmers. In stating that the bill is overly broad, ambiguous and encourages individual lawsuits, he also noted that the Montana Department of Ag already has a Montana Pollinator Protection Plan in the drafting and comment process that offers a balanced approach to this issue. The bill was amended in committee but failed to pass second reading in the Senate and is probably dead.On Friday, the Senate adjourned for its transmittal break, wrapping up the first half of the 2017 session, and will return on March 6. Bills that will not affect state revenue, or those that do not have fiscal notes, are considered dead unless they have passed out of one house and into the other chamber. The House plans to meet until Wednesday, March 1, before taking its transmittal break and will return March 7. 

USDA’s monthly Cattle on Feed report came in much as analysts had expected

After a number of surprises in recent months, USDA’s monthly Cattle on Feed report came in much as analysts had expected. Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on Feb. 1, 2017, up 1 percent from Feb. 1, 2016, just slightly higher than analysts’ average estimate, according to a pre-report survey by Urner Barry.Placements in feedlots during January totaled 1.98 million head, 11 percent above 2016, also in line with analysts’ expectations.Net placements were 1.93 million head. During January, placements of cattle and calves weighing less than 600 pounds were 380,000 head, 600-699 pounds were 445,000 head, 700-799 pounds were 585,000 head, 800-899 pounds were 410,000, 900-999 pounds were 116,000, and 1,000 pounds and greater were 45,000 head.New placement weight categories available starting this month are 800-899 pounds, 900-999 pounds, and 1,000 pounds and greater. Placements in both those categories were up slightly from a year ago. By weight category, the largest increases in placements compared to a year ago were in the 600-699 pounds and 700-799 pounds ranges. Placements in the 800-899 category were down slightly.Marketings of fed cattle during January totaled 1.75 million head, 10 percent above 2016 and in line with analysts’ expectations.   Other disappearance totaled 53,000 head during January, which was 5 percent below 2016. 

MSGA NOW TAKING APPLICATIONS FOR YOUNG CATTLEMAN’S CONFERENCE

Don’t miss this opportunity to learn more about the structure of the U.S. cattle industry and gain insight on the legislative process that guides our business. Montana Stockgrowers Foundation will send one Montana delegate on this year’s Young Cattlemen’s Conference (YCC), held May 31 – June 8, 2017. Applications, due March 1, are available at mtbeef.org. The Young Cattlemen’s Conference is an opportunity for cattlemen and cattlewomen between the ages of 25 and 50 to visit segments of the beef industry in other parts of our nation with young ranchers from other states. Facilitated by the National Cattlemen’s Beef Association (NCBA), participants will travel with national attendees to Denver, Chicago and Washington D.C., visiting JBS Five Rivers facilities, Chicago Board of Trade and Capitol Hill. Last year we had two Montana delegates, Andy Kellom from Hobson, Mont. and Ariel Overstreet-Adkins from Great Falls, Mont. The primary objective is to develop leadership qualities in young cattlewomen and cattlemen and expose them to all aspects of the beef industry. The tour helps these young leaders understand all areas of our industry ranging from industry structure to issues management, from production research to marketing. The Montana Stockgrowers Foundation will ensure funding for one participant for the full cost of the tour along with travel expenses. Remaining expenses are the responsibility of the participant, who will be chosen from those who apply. Participants must be a member of Montana Stockgrowers Association and National Cattlemen’s Beef Association. To learn more about the Young Cattlemen’s Conference and to complete an application, visit the MSGA website, mtbeef.org/young-cattlemens-conference. In addition to the form questions, two letters of reference are required to complete the application process. All applications must be complete and postmarked or received by March 1, 2017. Please mail or fax to MSGF at the following address: Montana Stockgrowers Association | Attn: YCC, 420 N. California St.  Helena, MT  59601. If you have any questions about the application process or YCC trip, please call the MSGA Office at (406) 442-3420 or e-mail jesse@mtbeef.org 

LIVESTOCK SLAUGHTER – JANUARY 2017 UNITED STATES HIGHLIGHTS

Commercial red meat production for the United States totaled 4.29 billion pounds in January, up 6 percent from the 4.06 billion pounds produced in January 2016. Beef production, at 2.12 billion pounds, was 8 percent above the previous year. Cattle slaughter totaled 2.58 million head, up 9 percent from January 2016. The average live weight was down 11 pounds from the previous year, at 1,370 pounds. Veal production totaled 6.3 million pounds, 5 percent below January a year ago. Calf slaughter totaled 46,600 head, 12 percent above January 2016. The average live weight was down 39 pounds from last year, at 235 pounds. Pork production totaled 2.15 billion pounds, 3 percent above the previous year. Hog slaughter totaled 10.1 million head, 4 percent above January 2016. The average live weight was down 1 pound from the previous year, at 284 pounds. Lamb and mutton production, at 12.3 million pounds, was 9 percent above January 2016. Sheep slaughter totaled 177,000 head, 10 percent above last year. The average live weight was 138 pounds, down 1 pound from January a year ago.

Central and Southern Plains HRW is Generally Dry and Vulnerable to Frost Damage

By Stephanie Bryant-Erdmann, USW Market Analyst

USDA reported state planted area statistics for hard red winter (HRW), soft red winter (SRW) and soft white (SW) winter wheat in its Jan. 12 Winter Wheat and Canola Seeding Report. At this week’s Wheat Quality Council and Plains Grains Inc. board meetings in Kansas City, MO, however, HRW producers shared state updates of crop conditions, soil moisture conditions and planted area. A summary of what we learned from the producers supplemented with current USDA data by state follows.

Colorado. Colorado farmers planted 891,000 hectares (2.20 million acres) of wheat in the fall of 2016, down 6 percent from 2015. Farmers reported that southeast Colorado planting conditions were very dry, but the rest of the state had ample moisture. According to USDA data, topsoil moisture is short or very short for 35 percent of the state, compared to just 22 percent short or very short at the same time last year. Subsoil moisture is 42 percent short or very short across the state compared to 23 percent last year. Farmers noted warm weather has pushed the crop 7 to 10 days ahead of normal across the state, which makes it more vulnerable to late frost damage. On Jan. 30, USDA rated 36 percent of Colorado winter wheat in good to excellent condition compared to 47 percent good to excellent when the wheat went into dormancy last fall.

Kansas. Farmers reported western Kansas is very dry. Subsoil moisture is rated at 41 percent short or very short, compared to 22 percent last year. USDA rated 37 percent of topsoil moisture as short or very short, compared to 19 percent in 2016. Early planted wheat established good stands last fall, but later planted wheat condition is more uncertain. On Jan. 30, USDA rated 45 percent of winter wheat as good to excellent compared to 52 percent good to excellent reported on Nov. 28. Last fall, Kansas planted 3.00 million hectares (7.40 million acres), down 13 percent year over year and the lowest planted area in 60 years.

Montana. Last fall, wet field conditions prevented some wheat planting in Montana. With a poor outlook for winter wheat prices, strong competition from peas and lentils shifted more acres in Montana. They planted 770,000 hectares (1.90 million acres) of wheat in 2016, down 16 percent from 2015. Farmers noted normal crop development and sufficient soil moisture, though some areas had below normal snow cover that increased the risk of winterkill. USDA rated topsoil moisture supplies at 13 percent short or very short, 77 percent adequate and 10 percent surplus, compared to 17 percent short or very short, 79 percent adequate and 4 percent surplus last year on the same date. On Jan. 30, USDA rated 70 percent of Montana winter wheat in good to excellent condition compared to 77 percent good to excellent when the wheat went into dormancy last fall.

Nebraska. Farmers reported good stands last fall, but western Nebraska is dry. The last measurable precipitation for that region occurred on Christmas day. USDA rated subsoil moisture supplies at 31 percent short or very short, compared to 19 percent on the same date last year. Topsoil moisture supplies are 23 percent short or very short, compared to 14 percent last year. With wheat now 5 to 7 days ahead of normal, the Nebraska crop is also more vulnerable to late frost damage. USDA rated 47 percent of Nebraska winter wheat in good to excellent condition on Jan. 30, compared to 53 percent good to excellent last November prior to dormancy. Nebraska farmers planted 441,000 hectares (1.09 million acres) of wheat in 2016, down 20 percent from 2015 and the lowest planted area on record for Nebraska.

Oklahoma. Most of Oklahoma received precipitation over the last few weeks that prevented further depletion of soil moisture, but it was insufficient to alleviate drought conditions. USDA rated topsoil moisture supplies at 38 percent short or very short compared to 60 percent short or very short last year. Subsoil moisture supplies are 56 percent short or very short, compared to 70 percent one year prior. Farmers noted wheat development is 12 days ahead of normal making it more vulnerable to late frost damage. Oklahoma farmers planted 1.82 million hectares (4.50 million acres) of wheat in 2016, down 10 percent from the prior year because late-season rain prevented some wheat planting. USDA rated 33 percent of Oklahoma winter wheat in good to excellent condition on Jan. 30, compared to 53 percent good to excellent when the wheat went into dormancy last fall.

South Dakota. Beneficial moisture last fall allowed for good stand establishment in South Dakota. Abundant snow cover is protecting the wheat and limiting winterkill risk. Topsoil moisture supplies rated 84 percent adequate, compared to 79 percent adequate last year. Subsoil moisture supplies rated 23 percent short to very short, 76 percent adequate and 1 percent surplus compared to 26 percent short or very short, 72 percent adequate and 2 percent surplus in 2016. USDA rated 62 percent of South Dakota winter wheat in good to excellent condition compared to 51 percent good to excellent when the wheat went into dormancy last fall. South Dakota farmers planted 364,000 hectares (900,000 acres) of winter wheat, down 24 percent year over year.

Texas. Last fall, Texas farmers planted 1.82 million hectares (4.50 million acres) of wheat, down 10 percent from the prior year in very dry field conditions. In the past two years, Texas planted wheat area has dropped by 20 percent. Early planted wheat emerged last fall, but the later planted wheat did not emerge until after beneficial precipitation fell in December. Farmers estimate the earlier planted wheat is 7 days ahead of normal development, while the later planted wheat is still emerging. USDA reported 93 percent of winter wheat had emerged by Jan. 30. On Jan. 30, USDA rated 29 percent of Texas winter wheat in good to excellent condition compared to 41 percent good to excellent when the wheat went into dormancy last fall.

USDA will release its next crop progress update Feb. 28 and will resume weekly crop condition reporting April 3. 

Cost-Sharing, Public-Private Partnership Set Crop Insurance Apart

The cost-sharing structure and the unique partnership between the U.S. Department of Agriculture (USDA) and the private sector are key to the success of crop insurance, according to National Crop Insurance Services President Tom Zacharias.Zacharias, who recently spoke at the 2017 USDA Agricultural Outlook Forum, said crop insurance has become popular on Capitol Hill and in rural America because "it serves as a hand-up, not a handout, when farmers need help rebuilding after a disaster.""Farmers help fund their own safety net by paying premiums and by shouldering part of losses through deductibles," he explained. "And private companies pay part of the indemnities when disaster strikes, helping shield taxpayers from risk."All told, farmers have collectively paid nearly $50 billion from their own pockets into the crop insurance system since 2000. Today, about 90 percent of U.S. farmland is insured, providing $100 billion in protection to more than 125 different kinds of crops in all 50 states.Crop insurance is now the cornerstone of U.S. farm policy, Zacharias said, which was made possible by a close working relationship between the government and the private sector. Insurance providers and agents sell and service insurance policies, while the USDA oversees the program, making it affordable and widely available to all growers."As a result, farmers usually get assistance within days or weeks of a verified claim, not months or years as was the case with old ad hoc disaster bills," he told the group.This public-private partnership is also important to stamping out waste and protecting taxpayer investments in the farm safety net. The USDA sets guidelines and closely monitors all activities, and insurers spend millions every year on new research and technologies, as well as training and education programs.Earlier this month, the USDA released crop insurance's improper payment rate for 2016. This measure of efficiency and accuracy is required of all major federal programs, and crop insurance's marks were twice as impressive as other government programs – 2 percent compared to the 4.67 percent government-wide average.Zacharias believes these successes will serve crop insurance well as Congress begins debate of the next Farm Bill.

USDA Outlook Report: CATTLE AND BEEF

With feed prices projected to stay stable in 2017, the U.S. cattle herd is expected to head into its fourth year of expansion. USDA's January 2017 cattle report pegged the cow-calf herd at 93.6 million head, 2% higher that month compared to 2016. The beef cow herd also grew 3% to 31.2 million head. According to producer reports, 1% more heifers are expected to be retained in U.S. herds this year, and 1% more heifers are expected to calve. Commercial beef production is set to increase by 3% to 26 billion pounds in 2017, the highest level of production since 2011. Total commercial cattle slaughter is expected to increase by just below 3%, and carcass weights are estimated to increase to just over 828 pounds. Beef exports in 2017 are forecast at 2.72 billion pounds, a nearly 7% hike from 2016. That's slower than the growth trend from 2016, when exports grew by 13%, bolstered by falling prices and a declining Australian herd. Australia is working on expanding their herd in 2017, but "biological constraints" will likely keep any herd growth in check and limit exports that could compete with the U.S. However, a strong U.S. dollar is likely to continue checking U.S. export growth. Beef imports in 2016 declined 11%, due to increased domestic production. That trend is expected to continue into 2017, with imports for the year forecast at 2.74 billion pounds, a 9% drop from 2016, thanks to increased U.S. cow slaughter and lower prices for domestic lean processing-grade beef. The 5-area steer price for Texas/Oklahoma/New Mexico; Kansas; Nebraska; Colorado; Iowa/Minnesota feedlots in 2017 is forecast to average $109 to $116 per cwt, down from 2016's average of $121. Feeder steer prices are pegged at an average of $132 to $139 per cwt, down from $143 in 2016.

USDA Again Ups FY 2017 US Agricultural Export Forecast

The value of U.S. agricultural exports in Fiscal 2017 is now seen at $136 billion, up from a prior outlook of $134 billion, according to USDA Chief Economist Robert Johansson at USDA's annual Outlook Forum near Washington, D.C., and USDA's Outlook for U.S. Agricultural Exports report."Overall, U.S. agricultural exports are forecast at $136 billion for FY 2017, with a rebound in Chinese demand and strong export sales in the beginning of this year," Johansson said. "In FY 2017, U.S. exports to China are projected at $22.3 billion, up more than $3 billion from 2016 and making it the top export market for U.S. agriculture. Exports to Canada and Mexico are also projected to increase. Together those three countries purchase 45 percent of total U.S. agricultural exports."Factors in the increase: Strong foreign demand and higher prices help boost livestock, poultry, and dairy exports by $1.6 billion, with beef, pork, and dairy leading the increase from the last report. Grain and feed exports are forecast down $1 billion to $28.6 billion, as declines in feeds and fodders and coarse grains more than offset higher wheat exports. Cotton exports are forecast at $5 billion, a $600 million increase, due to strong demand from most major markets and a larger, higher quality U.S. crop. Oilseed and product exports are forecast at $31.6 billion, up $600 million as strong soybean prices more than offset reductions in soybean meal exports. Horticultural product exports are unchanged at $34 billionU.S. agricultural imports in Fiscal 2017 are forecast at $114.5 billion, up $2 billion from the November forecast, and would be a new record. Horticultural product imports lead the increase and are expected to reach a new record of $54.4 billion.The U.S. agricultural trade surplus is forecast at $21.5 billion, unchanged from the level USDA forecast in November.

Iowa Gov. Branstad: Beef, Corn Traits Key Trade Focuses in China

Getting China to allow in U.S. beef and breaking down barriers to U.S. genetically modified corn traits approved in China will be among issues that Iowa Gov. Terry Branstad said he will focus on in his coming role as the U.S. ambassador to China.Since bovine spongiform encephalopathy has not been present in the U.S. for years, Branstad, a Republican, said in remarks at the USDA Outlook Forum near Washington that there is "no reason China should restrict U.S. beef." He wants to "serve U.S. beef" at the U.S. embassy in China and to serve it to Chinese officials. "They already buy a lot of pork, I just want to add beef," he added.China's restrictions on distillers' dried grains (DDGs) are another area Branstad will work on. "I would like to see them eliminated," Branstad said, adding that ethanol production is a key for his state and he also added a push for expanded use of ethanol in the U.S.On China's failure to approve certain U.S. GMO corn traits, Branstad noted he will focus on food safety said "I intend to do what I can." Branstad will meet with China's ambassador to the U.S. while in Washington, an official he said he has a "personal relationship" with. Those personal relationships are highly valued by the Chinese, Branstad added, something which can "help break down some of the barriers."Getting a level playing field for U.S. agriculture is another key, Branstad observed, noting he was on a trade mission to Japan and China immediately after the election. "I tried to tell them there is no question that President Trump wants to improved agreements we have in terms of trade. He feels the trade imbalance is too great," he said. Ideally, Branstad said he is hopeful Trump will work to "improve bilateral agreements and enhance our opportunity to export."

Effective Dairy Safety Net Requires Federal Spending

The first 2018 Farm Bill development meeting took place this week. Legislators have been encouraging the nation’s producers to speak up about what worked in the last Farm Bill and what didn’t. Online publication Milk Business quotes Senate Agriculture Committee Chair Pat Roberts as saying: “We need clear direction on what is and what is not working in farm country.” Dairy farmers have been very vocal of late regarding the Margin Protection Program established in the last Farm Bill. The dissatisfaction began in 2015 and that spilled over into the next year. In spite of the fact that dairy cash flow was down, participation was described as “anemic.” University of Missouri economist Scott Brown said the ongoing concern within the dairy industry is that the MPP doesn’t provide a strong enough safety net. Lawmakers have discussed improving the Margin Protection Program in the next Farm Bill but Brown says that’s going to cost some money. “It’s extremely difficult to construct a strong enough safety net program for dairy while reducing federal spending,” he says, adding: “There’s a high correlation between government expenditures and the effectiveness of the safety net.”

Ag Groups Ask for Infrastructure Help

Over 200 groups with a stake in agriculture and rural areas sent a letter to President Donald Trump asking for rural needs to be part of any plan to improve the nation’s infrastructure. Politico says a few of the groups that signed the letter included Farm Credit Council, American Farm Bureau Federation, and the American Soybean Association, among many others. The letter stated: “Past infrastructure initiatives often focused on urban and suburban infrastructure while not adequately addressing the unique needs of rural communities.” The groups add that American agriculture truly feeds the world and creates jobs. To ensure that America remains a leader in world agricultural production, they say infrastructure needs have to be addressed, noting that the nation’s deteriorating infrastructure threatens that leadership role in feeding the world. The groups caution that the federal government can’t do it alone, saying it should partner with local governments and find private funding sources, a move supported by Trump advisers. Alabama Republican Robert Aderholt is Chair of the House Appropriations Committee, who’s promised to make investing in rural infrastructure a high priority in fiscal 2018 allocations for the U.S. Department of Agriculture.

$1 Trillion Free-Trade Agreement Now In Force

Despite strong anti-trade comments from President Trump, a $1 trillion free trade agreement went into effect on Wednesday of this week, called the Trade Facilitation Agreement. A CNN Money report says the agreement is designed to cut through red tape and help solve problems like border delays and transportation bottlenecks. The World Trade Organization says it will cut a day and a half off the time needed to import goods and cut two days off the time need to export products. The WTO’s Director-General says: “The Trade Facilitation Agreement is the biggest reform of global trade this century.” WTO officials are predicting a 2.7 percent growth in trade around the world by 2030. Officials also say the agreement will cut the cost of shipping goods to other countries by 14 percent. The deal includes all 164 members of the World Trade Organization, including the United States. The U.S. approved the deal during the Obama Administration. A spokesman for the current U.S. Trade Representative didn’t immediately respond to a request for comments

Largest Ag Producers Changing Crop Protection Plans

A new study from Millenium Research shows that the nation’s largest farmers are still uncommitted or making changes to their crop protection plans. The “Farmer Speaks” study shows producers being more aggressive in cutting costs after a tough year in 2016. Growers who farm 1,000 or more acres are planning on making the highest percentage of cost-cutting at ten percent. Crop protection products and seed traits are the two areas where farmers look to make the biggest cost cuts. 25 percent of the respondents say they are using a different weed control system in their corn and soybean fields this year. Corn farmers say they’re looking at a 50 percent change in their crop protection products. Several of the nation’s largest producers say they haven’t made decisions yet regarding crop protection products on at least 1,000 acres. Growers are showing an increasing interest in soybean traits this year. 44 percent of soybean growers making changes this year will use a different product versus 2016. One-third of growers say insecticides and fungicides for soybeans and corn are their most undecided products heading into the planting season.

South Dakota’s legislature has scrapped a move to require country-of-origin labeling on meat sold in that state

South Dakota’s legislature has scrapped a move to require country-of-origin labeling on meat sold in that state, according to a report by the Rapid City Journal.Representatives of the 21 senators who voted against the proposal said federal regulations would supercede an amended South Dakota law. Only 13 senators voted in favor of rewriting the state’s COOL law.Sen. Lance Russell (R-Hot Springs) was prime sponsor of Senate Bill 135 on behalf of the South Dakota Stockgrowers.The U.S. repealed COOL in December 2015 after Canada and Mexico convinced the World Trade Organization that the rule was discriminatory and violated international trade laws. Earlier this month, Wyoming's legislature also began an effort to require COOL in that state.

Canada, Mexico Want All NAFTA Partners at Renegotiation Table

Senior officials from Canada and Mexico say renegotiations of the North American Free Trade Agreement will happen with all nations at the table. The trade agreement between the U.S., Canada and Mexico is being targeted by President Donald Trump for “tweaking.” Trump has indicated he may pursue individual trade agreements with both Canada and Mexico. However, the two nations said this week any renegotiations should include all three involved nations. Canada’s Foreign Minister Chrystia Freeland says “we very much recognize that NAFTA is a three-country agreement.” Leaders from Mexico say the deal is a “three partners conversation,” and will continue to be, according to Politico. Freeland said any formal launch of trade talks are still far away. She says Canada’s priority right now is to make clear to U.S. administration officials and lawmakers the value of Canada as a trading partner.

House Agriculture Subcommittee’s Plan Farm Bill Hearings

The House Agriculture Committee has scheduled two subcommittee hearings on the next farm bill next week. The Subcommittee on Conservation and Forestry will hold a public hearing next Tuesday morning regarding conservation policy in the next farm bill. That afternoon, the Subcommittee on Livestock and Foreign Agriculture will hold a public hearing regarding international market development and the next farm bill. The hearings follow a full House Agriculture Committee pre-farm bill hearing last week, and a Senate field hearing this week. House Agriculture Committee Chairman Michael Conaway, a Texas Republican, earlier this month called for a different farm bill approach than 2014, deciding program needs first, before proposing budget cuts. Conaway noted real 2014 farm bill savings were $100 billion, not the $23 billion claimed at the time.

Trump Pledges Support of the Renewable Fuel Standard

President Donald Trump penned a letter this week reiterating his support for the Renewable Fuel Standard. The Renewable Fuels Association released the letter during the National Ethanol Conference in San Diego, California. Trump told the ethanol industry in the letter that “your president and this administration values the importance of renewable fuels to America’s economy.” RFA President and CEO Bob Dinneen thanked Trump for reaffirming his support, which has been in question because Trump appointed former Oklahoma Attorney General Scott Pruitt to head the Environmental Protection Agency, according to the Hagstrom Report. Pruitt has close ties to the fossil fuel industry, but has upheld that he will enforce the RFS as per the laws set by Congress.

Bayer CEO Confident Monsanto Deal Will Close by Years’ End

Bayer AG CEO Werner Baumann says he expects the Bayer-Monsanto deal will close by the end of this year. Bauman says he is confident the planned $57 billion acquisition of Monsanto would overcome any regulatory obstacles and close by the end of the year, despite delays with U.S. and European antitrust authorities, according to a report by Dow Jones. Bauman made the comments during Bayer’s annual earnings conference. Bayer filed for approval with the Justice Department for the agreement at the end of last year, but has put off filing for regulatory approval with the European Commission until the second quarter of this year. The delay, according to Bayer, follows a request by officials for new documents regarding the transaction. The merger would create the world's top supplier by sales of both seeds and pesticides, creating a "one-stop solution for farmers" that regulators could see as undermining competition. However, President Donald Trump has touted the deal because of Bayer’s commitment to creating new jobs in the United States.

Bird Flu Strain Becoming More Severe in China

China reported this week the nation is assessing a new strain of avian influenza, H7N9, which officials report has evolved into a more severe form in birds. The outbreak of the more severe strain is localized in a single province in China, but given the livestock production within the nation, Chinese officials report preventing the spread of the new strain would be difficult, according to Reuters. Until now, the H7N9 virus has shown little or no clinical symptoms in birds, despite being highly pathogenic when it infects humans. 304 human infections were reported over the last month in China. The World Health Organization said this week China has detected an evolution in the virus that is capable of causing severe disease in poultry and requires close monitoring.  Animal health experts say bird flu infection rates on Chinese poultry farms may be far higher than previously thought, because the strain of the deadly virus in humans is hard to detect in chickens and geese.

Animal Health Market Forecasted to Reach $58 Billion by 2025

A new report projects the animal health market will be worth $58.5 billion by 2025. Grand View Research reports the market is driven by technological advancements in veterinary care, which are anticipated to serve future growth opportunities to the market. The research agency says the advanced work of identifying emerging animal health issues in developing economies provides a high growth potential in the future. The report also found that vaccines are expected to exhibit lucrative growth rates during the forecast period. The report also says the companion animal segment, or pets, is anticipated to grow at an exponential rate, owing its success as a consequence of associated health benefits for humans, which includes lower blood pressure, greater psychological stability, and reduced anxiety attacks.

Corn inspections bullish, soybean inspections neutral to bullish and wheat inspections neutral to bearish

OMAHA (DTN) -- Corn inspections were bullish again while soybean inspections were neutral to bullish and wheat inspections were neutral to bearish, according to DTN Analyst Todd Hultman.Corn weekly export inspections were 45.4 million bushels (1,152,233 metric tons) for the week ending Thursday, Feb. 16. This is above 35.8 mb for the same week a year ago. Inspections for 2016-17 totaled 961 million bushels, up 74% from the previous year and well above USDA's projected 17% demand increase. Tuesday's report remained bullish for corn, Hultman said.Soybean weekly export inspections were 39.6 mb (1,076,390 mt) for the week ending Feb. 16. This is below 56.8 mb for the same week a year ago. Inspections for 2016-17 total 1.568 billion bushels, up 14% from the previous year and above USDA's projected 6% demand increase. Tuesday's report was neutral to bullish for soybeans, Hultman said.Wheat weekly export inspections were 20.5 mb (558,252 mt) for the week ending Feb. 16. This is above 9.9 mb for the same week a year ago. Marketing-year inspections for 2016-17 total 675 mb, up 27% from the previous year and below USDA's projected 32% demand increase. Tuesday's report was neutral to bearish for wheat, Hultman said. 

TRUMP'S LETTER OF SUPPORT

On Tuesday, Trump sent a letter of support to attendees of the National Ethanol Conference, reiterating his support for the renewable fuels industry."Rest assured that your president and this administration value the importance of renewable fuels to America's economy and to our energy independence," Trump said in the letter."As I emphasized throughout my campaign, renewable fuels are essential to America's energy strategy. As important as ethanol and the Renewable Fuel Standard are to rural economies, I also know that your industry has suffered from overzealous, job-killing regulation."I am committed to reducing the regulatory burden on all businesses, and my team is looking forward to working with the Renewable Fuels Association and many others, to identify and reform those regulations that impede growth, increase consumer costs, and eliminate good-paying jobs without providing sufficient environmental or public health benefit," Trump said.During the panel discussion, one oil industry representative said the new administration is opening doors for his industry and renewable fuel interests to find common ground."I think we all have an opportunity to take a deep breath," said Marty Durbin, executive director for market development at the American Petroleum Institute, or API."We were all planning for a different outcome (to the presidential election). But the election result does provide some interesting opportunities for new coalitions."Chet Thompson, president of the American Fuel and Petrochemical Manufacturers and former general counsel at EPA under the George W. Bush administration, said his group is encouraged by the Trump administration's pursuit of regulatory and tax reform.In addition, Thompson said Trump's America-first approach is expected to open the door to expand energy production across the board."We're thrilled by what we're seeing in the first month," Thompson said. "If you look at the executive orders on regulatory reform and two-for-one policy, Congress getting in the game, there's lots of opportunities for us in manufacturing."Trump signed an executive order calling for federal agencies to eliminate two regulations for every new regulation proposed. That order faces a court challenge from a number of environmental groups.Thompson said he believes Pruitt will be a "champion" for the energy industry as a whole."For eight years, EPA has fought all of liquid fuels," Thompson said. "We think the opportunity is now to make lasting changes. In the last eight years, the EPA has issued nine rules that at least each come with $1 billion in compliance costs." 

U.S. Department of Agriculture export sales activity

WASHINGTON (Dow Jones) -- Private exporters reported to the U.S. Department of Agriculture the following export sales activity:- Export sales of 111,200 metric tons of corn for delivery to unknown destinations during the 2016-17 marketing year.- Export sales of 138,650 metric tons of wheat for delivery to unknown destinations. Of the total 92,650 metric tons is for delivery during the 2016-17 marketing year and 46,000 metric tons is for delivery during the 2017-18 marketing year.The marketing year for corn began Sept. 1.The marketing year for wheat begins June 1.USDA issues both daily and weekly export sales to the public.Exporters are required to report to the USDA any export sales activity of 100,000 metric tons or more of one commodity made in one day or quantities totaling 200,000 tons or more in any reporting period to one destination, by 2 p.m. CT on the next business day. Export sales of less than these quantities must be reported to USDA on a weekly basis.(BAS) 

Groups Pen Letter Urging Lawmakers to Reject any Farm Bill Cuts

A letter spearheaded by the American Farm Bureau Federation asks lawmakers to reject any funding cuts in the next farm bill. More than 500 groups joined the letter that claims additional funding cuts would “hinder development and passage of the 2018 farm bill.” The last farm bill contributed $23 billion in savings to deficit reduction over 10 years at the time of passage. That was the first time when spending for a farm bill was voluntarily reduced before Congress even began considering the measure. The groups say cuts made under the 2014 farm bill helped the nation’s deficit reduction effort, but add that additional cuts to the 2018 farm bill would present “perils on many fronts.” The letter strongly urged congressional leaders “to reject calls for additional cuts” during a time when the agricultural and rural economies are showing stress. The letter points out that U.S. farm income has declined 46 percent from three years ago.

U.S. Corn a Better Deal for Mexico than Corn from Brazil, Argentina

The CEO of global agribusiness company Bunge Limited says U.S. corn is a better deal for Mexico than corn from Argentina or Brazil. Soren Schroder (shrow-der) says he does not think Mexico would start heavily buying corn from South America, simply because the U.S. offers a better deal, according to DTN. Schroder says Mexico purchasing corn other than from the U.S. would require a price shift in Brazil and Argentina. Concerns over Mexico sourcing corn beyond the U.S. surfaced this month after a Mexican lawmaker planned to introduce legislation to instruct the nation to buy corn from South America, rather than the United States. The bill is seen as a response to trade rhetoric by U.S. President Donald Trump. Trump plans to renegotiate the North American Free Trade Agreement, and build a wall between the U.S. and Mexico while implementing an import tax of 20 percent on Mexican goods entering the United States.

Rural Mainstreet Index Improving

The February Rural Mainstreet Index remained weak with a reading below growth neutral for the 18th straight month. But at 45.8, it reached its highest level in more than a year. The index ranges between 0 and 100. A rating below 50 suggests economic retraction, while a rating above 50 represents expansion. The index represents a 10-state region in the Midwest with strong economic ties to agriculture. Index organizer Ernie Goss says weak farm commodity prices continue to squeeze Rural Mainstreet economies. However, Goss says “the negatives are getting less negative.” Only 14.9 percent of bankers reported that their local economy was expanding. Approximately 34 percent indicated their local economy was in a recession with the remaining 51.1 percent indicating little or no economic growth. The farmland and ranchland-price index for February dipped to 33.7 from January’s 33.8. This is the 39th straight month the index has languished below growth neutral. Bankers indicated that farmland prices in their area had declined by an average of 5.1 percent across the region over the past 12 months. Meanwhile, the February farm equipment-sales index increased to 20.5 from 16.7 in January. 

OPEC of Sugar Announces Another Subsidy

When it comes to sugar production, Brazil is the big, bad bully on the block.Using at least $2.5 billion a year in subsidies and other government goodies, Brazil has staked claim to nearly half of the world's sugar exports. And with that kind of market dominance, Brazil has an unparalleled impact on world sugar prices, which might help explain the huge price peaks and valleys in recent years.Apparently, $2.5 billion a year isn't enough. According to a Jan. 16 report from Reuters:Brazil will increase a subsidized credit line available to farmers to prepare for the 2017-2018 crop by about one-fifth to 12 billion reais ($3.72 billion), President Michel Temer told Reuters on Monday.The new crop financing will allow Brazilian producers to purchase agricultural inputs such as seeds, fertilizers and pesticides at reduced interest rates to better plan future production.Last year, the government made 10 billion reais available to prepare for the 2016-2017 crop, which is on track to break records.Here's how the subsidy works.The state-controlled Banco do Brasil offers agricultural producers preferential interest rates on operating loans. The government then makes up the difference between the low loan rate and the bank's cost for raising the capital – in essence shielding sugar producers from inflation and helping them remain atop their perch as the world's top producer and exporter.And if Brazil decides to take a page out of India's playbook, don't be surprised if repayment of the subsidized loans is altogether forgiven, enabling it to shoot subsidy checks directly to growers grappling with Brazil's economic downturn.Such is the world in which efficient U.S. sugar producers must compete, which is why we cannot unilaterally disarm our no-cost sugar policy and should strive for worldwide subsidy reform. 

The Consumer Price Index (CPI) for supermarket food prices continues to fall on an annual basis

The Consumer Price Index (CPI) for supermarket food prices continues to fall on an annual basis, while lower prices for beef are sending grocery sales for protein measurably higher, according to separate U.S. government and industry reports.The CPI for food prepared at home fell nearly 2 percent on a seasonally adjusted, year-over-year basis, in the 12 months ending in January, the U.S. Bureau of Labor Statistics reported. Much of the decline can be traced to the 4.9-percent decrease in the fruits and vegetables index over the year that ended January 2017, the agency said. The monthly CPI specifically for meats, poultry, fish and eggs – which had declined for 26 consecutive months – rose 0.7 percent, mostly because of a 14.3-percent increase in the index for eggs during the month.Meanwhile, lower meat prices and more promotions and sales in supermarkets have fueled consumer appetite for meat, according to an official at the National Cattlemen’s Beef Association. The organization noted that U.S. consumers took advantage of lower “feature average prices,” which were down 7.6 percent. Consumers increased their purchases of beef on sale to 31.4 percent of beef purchased in the 52 weeks that ended Dec. 31, 2016 compared with 26.8 percent of purchases in same period in 2015.“Wholesale prices and ultimately retail prices adjusted downward, improving margins for retail operators and affordability for consumers,” said Alison Krebs, director of market intelligence at the association. She added that overall meat prices fell by more than 15 percent last year compared with the mid-2015 peak meat prices.Krebs also noted that the share of total beef purchases for organic, naturally raised, grass-fed or antibiotic-free beef is holding steady at 4.2 percent of total retail beef sales. 

NILE Foundation Scholarship Program benchmarks tremendous growth in 2017

Billings, Mont.--Giving away more money than ever before the NILE Foundation Scholarship Program benchmarks tremendous growth in 2017.
"Since 2009, the NILE's Scholarship Program has grown by 600% for today's kids involved agriculture," says NILE Foundation President Butch Bratsky. 
"Each year we increased the amount of money given, this year we are thrilled to announce that $30,000 has been set aside for the scholarship and internship program." 
Over time, the NILE has awarded scholarships to over 150 deserving FFA and 4-H students. To be eligible for a scholarship high school and college students must be enrolled in 4-H or FFA, actively involved in their communities, excel in the classroom, and participate in NILE events.  
Scholarship applications and guidelines can be found on the NILE's website, or by contacting the NILE Office at (406) 256-2495. Applications must be submitted to the NILE Office by March 1, 2017 at 5 p.m. Incomplete or late applications will not be considered. Scholarships recipients announced in early April 2017. 
There are numerous ways for kids to participate in NILE events. Each year the NILE touches the lives of nearly 10,000 youth through its many youth programs: Jr. Fed Show, 4th Grade Ag Education, Merit Heifer Program, 4-H and FFA Contests, Internships, and Jr. Cattle Breed Shows.
Every year the NILE provides over $55,000 in cash and "live" animal scholarships. The live animal scholarships includes the Merit Heifer Program which awards kids a heifer to feed, halter break, breed, show and report on for a year. After satisfactory completion of the program the kids earn full ownership of the heifer. 
"Promoting the future of agriculture through the support of youth via scholarships is a long standing tradition of NILE." says Jennifer Boka, General Manager of the NILE. "Educating today's youth to be tomorrows ag proponents is crucial to the entire world and we are NILE are proud to support and embrace the future of agriculture."
The NILE Foundation was established in 2009 as a supporting arm of the NILE organization, which is dedicated to the promotion of livestock, agriculture education, and respect for the western culture. 

Costco Converting Australian Beef To US Product In South Korea

American beef has been rapidly building momentum in South Korea, and it received a further boost last week as Costco officially began converting its imported chilled beef selection from Australian beef to 100 percent U.S. product.The move follows a multi-year effort by the U.S. Meat Export Federation (USMEF) to persuade store managers that sales of American beef – a popular item at Costco – would match or exceed Australian beef sales due to revived consumer confidence in the safety of American beef.Costco currently has 13 warehouses in Korea, with two new locations scheduled to open this year. On Feb. 13, the company began transitioning two of those warehouses to 100 percent American chilled beef. The others will be converted in May.In total, Costco’s move represents an opportunity for about 15,000 metric tons (mt) of incremental new beef business in 2017, said Jihae Yang, USMEF director in Korea. Yang noted that the theme of American beef promotions in Korea has gradually moved from food safety to consumer enjoyment and product quality.USMEF is also providing support to Costco to ensure a smooth transition to U.S. chilled beef, helping re-acquaint customers with the full range of American beef cuts.“Korean consumers love the high quality of U.S. beef and really enjoy the flavor of our product,” added Dan Halstrom, USMEF senior vice president for marketing. “In Korea, Costco is the gold standard when it comes to imaging food products, especially beef. USMEF, along with our partners in the U.S. beef industry, have been working hard to recapture market share in Korea. We’ve been able to do that, but mostly on the frozen side. The marquee items at Costco are the chilled beef cuts and we finally have that chilled section of the meat case back.”American beef exports to Korea totaled 179,280 mt in 2016, up 42 percent year-over-year. Export value reached $1.06 billion, up 31 percent from a year ago and breaking the previous value record (from 2014) by 25 percent. Chilled beef exports to Korea totaled 24,572 mt in 2016, up 47 percent year-over-year, valued at $216.4 million (up 43 percent).American beef captured 42 percent of Korea’s imported beef market in 2016, up from 35 percent the previous year, while Australia’s market share fell from 57 percent to 49 percent. But Yang notes there is still room for further growth, citing pre-BSE data from 2003.“Prior to the December 2003 market closure, U.S. beef accounted for the majority of imported beef sales in Korea and 49 percent of total sales – including domestic beef,” she explained. “So while U.S. beef has made excellent progress in Korea, the market still holds strong growth opportunities.” 

Foreign demand accounts for a significant share of U.S. animal products production

Latest-available trade data show that foreign demand accounts for a significant share of U.S. animal products production, USDA reported in its monthly Livestock, Dairy and Poultry Outlook report.In 2016 beef exports accounted for 10.1 percent of commercial production. Asia was the largest export market last year, accounting for 63 percent of beef exports.In 2016, 21 percent of U.S. pork production was exported, with Asia (45 percent) and Mexico (31 percent) taking the largest share of exports.The U.S. poultry sector (broilers, other chicken, and turkey) exported 15.6 percent of production, with a large number of relatively small shipments (“Other”) accounting for 56 percent of exports.Almost 4 percent of U.S. lamb and mutton production was exported in 2016. “Other”— which in this case consists of several Caribbean nations — accounted for 41 percent of exports, while Mexico accounted for 40 percent. 

PLC and Legal Community Comment on the Range Allotment Owners Association

WASHINGTON (Feb. 20, 2017) -- Ethan Lane, executive director of the Public Lands Council, today released the following statement and open letter regarding the Range Allotment Owners Association:

"The Public Lands Council is the only organization in Washington, DC, who solely represents the 22,000 ranchers who operate on public lands. Since 1968, PLC has had boots on the ground in the halls of Congress and the federal land management agencies, working to ensure that rancher’s voices are heard.

"Recently, a group has materialized, claiming to be the only organization that represents the public lands rancher. This group, called the Range Allotment Owners Association, is advancing a compelling but dangerous theory, that ranchers who hold grazing permits on public lands are not merely permittees, but allotment owners. While we at PLC fight every day for the preference and property rights of ranchers, we feel that this particular theory goes beyond our legal rights and could ultimately result in the loss of permits and subsequent destruction of family ranches. 

"We are lucky in this industry to have a deep bench of legal talent that is focused on our issues and represent our interests in the courts. These assembled legal minds have released the following open letter on this general topic, which we present to you independent of our opinions and analysis. That so many of the names on the attached letter will be familiar to you is a testament to their commitment to our industry and their years of work on behalf of ranchers." 

Deere & Co. said Friday demand for its farm machinery is improving

(Dow Jones) -- Deere & Co. said Friday demand for its farm machinery is improving, offering fresh optimism that the three-year-long slide in equipment sales is beginning to ease.Deere, the world's largest manufacturer of tractors and harvesting combines, raised its sales growth forecast for 2017. The company topped sales and profit expectations in its fiscal first quarter with help from the sale of a portion of its distribution business for landscaping supplies.The company predicted that sales of its farm and construction machinery will rise about 4% this year to about $24.3 billion, after forecasting a 1% expansion in November. The company also bumped up its net income forecast to about $1.5 billion from $1.4 billion, implying earnings per share at about $4.54. Analysts were expecting $4.53.The Moline, Ill.-based company offered an upbeat outlook for its farm-equipment business, despite a continued weakness in the U.S. market where Deere dominates. The company said it now expects sales of its farm equipment to increase by about 3% this year after earlier predicting a 1% increase. Deere executives said dealer inventories have shrunk, allowing Deere to accelerate factory production to resupply its dealers and fulfill orders from farmers. The company said the used equipment market is stabilizing as well, giving farmers better trade-in prices on older equipment when they order new models."We aren't seeing a significant decline in that retail environment as we had both in 2015 and 2016," said Tony Huegel, investor relations director for Deere, during a conference call Friday with analysts.Deere still expects industrywide sales of farm machinery in the U.S. and Canada to fall by 5% to 10% this year from 2016. Lower prices for farm commodities have squeezed farmers' incomes, driving down demand for tractors and harvesting combines since 2014. Deere predicted that U.S. cash receipts from farming will be flat this year with 2016.Deere is counting on significantly better machinery demand this year from farmers in Latin America, especially Brazil, where the company sees rising crop prices and available government-sponsored financing that fueled robust equipment sales in past years.For the quarter ended Jan. 29, sales of Deere's farm machinery were flat from a year earlier at $3.59 billion, while operating income rose 48% to $213 million with a one-time income infusion from the sale of a portion of the SiteOne distribution business.Sales of Deere's construction and forestry equipment dropped 6% during the quarter to $1.1 billion as operating income plunged 51% to $34 million. Deere expects a sharp turnaround in the lackluster business as the year unfolds, predicting sales will increase 7% this year. Deere said first-quarter orders for construction equipment in the U.S. and Canada were up by one-third from same period the year before. The company said equipment rental companies have accelerated their orders recently and the company expects housing construction and slightly better U.S. gross domestic product growth to drive higher sales during the second half of the year. Deere's construction business is largely concentrated in North America."What we saw in the [first] quarter was a very, very strong order book," said Mr. Huegel. "That's what's driving that confidence in terms of where that outlook improved."Rival construction-equipment maker Caterpillar Inc. reported Friday that retail sales of its construction equipment during the three month months ended in January slipped 13% in North America from a year earlier.Overall for the first quarter, Deere reported a profit of $193.8 million, or 61 cents a share, down from $254.4 million, or 80 cents a share, a year earlier.Machinery sales fell 1.5% to $4.69 billion. Total sales, which include revenue from Deere's finance unit, rose 2% $5.62 billion. Analysts had forecast earnings of 55 cents a share with $4.68 billion of equipment sales. 

Senate Panel Hears From Trump Trade Official

Several Senate Finance Committee members said they remain confused on the Trump administration’s trade strategy even after meeting with the director of the newly created White House National Trade Council. Peter Navarro, the former University of California-Irvine economist, spent about an hour with Democratic and Republican Finance Committee members Wednesday and laid out several trade principles. In a separate meeting Tuesday, GOP committee members spoke with White House international trade negotiator Jason Greenblatt.Navarro “offered few details about the administration’s objectives on trade and no strategy for how it plans to achieve them,’’ Finance ranking member Ron Wyden, D-Ore., said in a statement about Wednesday’s presentation. “In some cases, the officials’ message conflicted with recent statements made by the president regarding his trade policy. In other cases, the message appeared to contradict Congressional directives on trade that became law in 2015.”President Trump has said Navarro and Commerce Secretary nominee Wilbur Ross will set the administration’s trade agenda while working with the U.S. trade representative. Trump’s USTR nominee is Robert Lighthizer.Sen. Pat Roberts, R-Kan., chairman of the Senate Agriculture Committee, said he stressed agriculture’s need for strong export markets. He said trade is especially important since USDA has forecast a drop in net farm income for a fourth year. Roberts suggested that Navarro, Greenblatt and eventually Lighthizer pursue trade in several markets such as Japan, and avoid policies that could harm agricultural sales overseas. 

Day Without Immigrants Protests Slowed some Meatpacking Operations

Last week’s Day Without Immigrants protests caused some slowdowns at meatpacking operations in the United States, but Tyson Foods and Cargill said all plants were operational last Thursday. A Cargill spokesperson told meat industry publication Meatingplace the impact was “minimal,” and a Tyson Foods spokesperson said absentee levels at some locations were “higher than normal,” but noted all plants were operating. North American Meat Institute President Barry Carpenter said some operations were slowed or modified because of the protests across the nation. Carpenter said: "We respect the rights of our employees to express themselves,” noting that the meat industry has long supported comprehensive immigration reform. Media reports listed several types of business closures, largely in urban areas, and including grocery stores and restaurants from fast food to fine dining.

East Coast Dock Workers Starting Contract Negotiation Early

Dock workers and cargo companies along the east coast are getting an early start to contract negotiations, an effort that could prevent a port slowdown like the one seen on the west coast during 2015. The International Longshoremen’s Association held informal contract talks last week with the United States Maritime Alliance, which represents the employers of some 25,000 unionized Atlantic and Gulf Coast port workers, according to the Wall Street Journal. In a joint statement, the two organizations say the discussions were “productive and peaceful.” The meeting came 19 months before the current contract, agreed to in 2013, is set to expire in September of 2018. Talks first began in 2015, after labor negotiations at west coast seaports forced a slowdown in exports and congested ports on that side of the nation. 

Mexico Looking at Argentina, Brazil, for Yellow Corn

Mexico is turning its attention to South America, given uncertainty over U.S. President Donald Trump’s trade policies. Mexico’s agriculture minister last week announced he would lead a business delegation to Argentina and Brazil to explore buying yellow corn from the two nations. The trip was attributed to an effort to consider lessening Mexico’s dependence on the United States, according to Reuters. Exact dates have yet to be set, but Mexico confirms the trip will happen within the next 20 days, and Mexico could explore quotas and changing the tariff regime for imports from South America if needed. The announcement follows a threat to retaliate against the U.S. by a Mexican Senator who is considering legislation to direct the country not to buy corn from the United States. The threats stem from Mexico’s opposition to a President Trump proposal to build a border wall and impose a 20 percent import tax on Mexican goods to cover the cost and the consideration of renegotiating the North American Free Trade Agreement.

Senate Agriculture Committee Holding Farm Bill Field Hearing

The Senate Agriculture Committee will hold its first farm bill field hearing this week in Kansas. The hearing, planned for Thursday at Kansas State University in Manhattan, Kansas, will feature testimony from a variety of agricultural producers, according to committee sources. Titled “Hearing from the Heartland: Perspectives on the 2018 Farm Bill from Kansas,” committee members will get an update on “what is working and what is not working in farm country,” according to Committee Chairman Pat Roberts, A Kansas Republican. The field hearing will follow the House Agriculture Committee’s pre-farm bill hearing last week. The Senate Agriculture Committee will live stream the hearing online at ag dot senate dot gov (www.ag.senate.gov). A time for the hearing had not been confirmed as of Friday afternoon.