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Friday, March 31, 2017

President Donald Trump will sign a pair of executive orders Friday focusing on trade

(WASHINGTON (DTN) -- Sticking to campaign promises to lower the trade deficit and get tougher with countries that violate trade rules, President Donald Trump will sign a pair of executive orders Friday focusing on trade.One of the executive orders involves the Commerce Department compiling a detailed, product-by-product examination regarding why the U.S. has large trade deficits with some countries. The second order tightens import rules to ensure the U.S. collects a missing gap of roughly $2.8 billion in duties slapped against trade partners to ensure those funds are being collected on imports.The White House briefed reporters about the details of the executive orders Thursday evening."These actions are designed to let the world know that this is another step in the president fulfilling his campaign promise to do several things," said Secretary of Commerce Wilbur Ross.One, Ross said, is the president wants stricter enforcement of trade rules than in the past. Second, the president wants to use the Commerce Department be more proactive on trade actions. "Commerce has always had the power to initiate trade actions, but very rarely used them," Ross said.Ross will lead an "omnibus order" that calls for a large-scale investigation "to try to identify every form of trade abuse and every non-reciprocal practice that now contributes to the U.S. trade deficit," Ross said."What's driving this is the U.S. has the lowest tariff rates and the lowest non-tariff barriers of any developed country," Ross said. "So while many countries talk about free trade, they are actually far more protectionist than we are. And that reflects itself both in terms of the barriers they erect on their borders and their behavior in terms of our borders."Breaking down trade country by country and product by product "will form the basis for decision making by the administration" after the investigation is done, Ross said. Those decisions, then, "will be based on hard facts and not theories," Ross added.Within 90 days, the Commerce Department will come back to Trump with explanations highlighting the problems with the two-way flow of goods and services. Ross said the U.S. has never made such an analysis to follow up with trading partners and assess how the trade relationship has worked out or why a deficit developed."So the kinds of things that will be key questions for the investigation is the extent with which our bilateral deficit with countries is the result of cheating or other inappropriate behavior," Ross said.Second, the investigation will look into whether the deficits with countries are because of specific free-trade agreements that did not produce positive results they were expected to generate for U.S. businesses and workers, Ross said.The investigation will also look into possible lax enforcement by the World Trade Organization on other countries relative to the U.S. The Commerce Department will also look into whether the trade deficits are caused by currency manipulation or misalignment to the U.S. dollar."In many cases, needless to say, there will be multiple of these reasons helping to account for some of the deficits," Ross said.The countries involved will be those that have the largest overall trade surpluses with the U.S. Nearly all of the countries involved are major trading partners for agriculture, but also are some with major barriers on U.S. agricultural goods.Those countries, including China with a $347 billion trade deficit, combined for an $803 billion trade deficit with the U.S. last year.Just because the country is on the list and has a trade surplus with the U.S., that doesn't mean it is an "evildoer," Ross added. In some cases, it may become obvious that the U.S. imports a product such as oil from that country -- such as Canada -- or U.S. businesses heavily import a product or other natural resource not produced in the country. In other cases, Ross said, it may be that the other country can simply build a product cheaper or easier that the U.S."Undoubtedly, there will be some countries we will conclude there is no action that shall be taken," he said.The second executive order, spearheaded by Peter Navarro, director of the White House National Trade Council, will deal with "a long-festering problem" by tightening enforcement and collection of anti-dumping and countervailing duties levied by the U.S. against trade partners. Navarro said there are currently roughly $2.8 billion in uncollected duties by U.S. officials after it was determined a trading partner was violating trade rules. Navarro said federal agencies will now take more enforcement actions when goods come into the country to collect those duties."We have been collecting these duties," Navarro said. "We just haven't been doing it very well."Further, the administration will also tighten import inspections for copyright and patent infringement to stop the import of pirated and counterfeit goods from coming into the country, Navarro said.The executive orders come as the Wall Street Journal is reporting that the Trump administration is floating a plan around Congress to start renegotiating the North American Free Trade Agreement with Canada and Mexico. The Wall Street Journal reported the draft document shows the White House "is serious about opening the door to "Buy American" provisions and negotiating greater flexibility to impose or reinstate tariffs on Mexican and Canadian goods." 

Perdue Nomination Poised for Full Senate Vote

The confirmation of Agriculture Secretary nominee Sonny Perdue now awaits a full Senate vote after the Senate Agriculture Committee on a voice vote approved the nomination. The vote occurred off the Senate floor in the midst of floor votes Thursday morning. Full Senate action has yet to be scheduled, and a packed schedule next week could mean the Senate won't be able to consider Perdue's nomination until after a two-week Easter recess that starts at the end of next week. The Senate is expected to consider the nomination of Neil Gorsuch for the Supreme Court next week, and that process is expected to be time-consuming. All but one Senate Ag Committee member voted in favor for Perdue. New York Democrat Kirsten Gillibrand insisted on a no vote and Perdue's cousin, Georgia Senator David Perdue, abstained.

Trump May Seek Only Minor Tweaks to NAFTA

The Donald Trump administration seems more likely to pursue modest changes to the North American Free Trade Agreement in negotiations with Canada and Mexico. Trump called NAFTA a “disaster” during his campaign for President, but The Wall Street Journal reports his suggestions for NAFTA seem less likely to make sweeping reforms to the trade agreement. According to an administration draft proposal being circulated in Congress by the U.S. trade representative’s office, the U.S. would keep some of NAFTA’s most controversial provisions, including an arbitration panel that lets investors in the three nations circumvent local courts. The draft, reviewed by The Wall Street Journal, talks of seeking “to improve procedures to resolve disputes,” rather than eliminating the panels. However, experts caution that the draft could be revised. The administration must give Congress 90 days’ notice under trade law before beginning formal NAFTA renegotiations.

EPA Denies Petition to Remove Chlorpyrifos from the Market

The Environmental Protection Agency this week denied a petition to remove chlorpyrifos (clo-PEER-uh-foss) from the market. The NGO, or non-government organization petition, failed to fall in line with scientific research, according to agriculture groups. CropLife America says EPA's decision to deny the chlorpyrifos petition is a hopeful indication that EPA is recommitting to established requirements and guidelines relating to transparency, public process, and scientific integrity. The crop protection industry is “encouraged by EPA's detailed rationale set forth in the denial order and supports EPA's commitment to a thorough registration review of chlorpyrifos.” An official with the Department of Agriculture’s Office of Pest Management Policy said: “This is a welcome decision grounded in evidence and science.” National Corn Growers Association President Wesley Spurlock said the organization was pleased the EPA will return to the standard pesticides review process as called for under the Federal Insecticide, Fungicide, and Rodenticide Act, adding “the overwhelming scientific consensus is that chlorpyrifos is safe for use by farmers, and we are confident that the pesticide review process will reaffirm this.

U.S. Hogs and Pigs Inventory Up Four Percent

The Department of Agriculture’s Quarterly Hogs and Pigs report released Thursday shows the current U.S. inventory of hogs and pigs up four percent from March of last year. USDA’s National Agricultural Statistics Service says there were 71 million hogs and pigs on U.S. farms as of March 1, 2017. While an increase year-over-year, that figure is down one percent since the December 2016 report. The report also found that of the 71.0 million hogs and pigs, 64.9 million were market hogs, while 6.07 million were kept for breeding. Further, between December 2016 and February 2017, 31.4 million pigs were weaned on U.S. farms, up four percent from the same period one year earlier. Also, U.S. hog producers intend to have 3.01 million sows farrow between March and May 2017, and 3.05 million sows farrow between June and August 2017.

India Still Top Global Milk Producer

Data by the U.S. Department of Agriculture shows India remains the global leader in milk production, trailed by the United States, which is the second largest milk producing country. India is unique among the major milk producers because more than half of its production comes from water buffalo, rather than cattle. However, India’s dairy herd is the largest in the world. Since 1980, production has grown consistently at an average of 4.5 percent per year. India surpassed the United States as the largest dairy producer in 1997 when both countries produced roughly 70 billion tons, each. In 2016, total production reached 154 billion tons compared with 96 billion produced in the United States.

Men, Young Adults, Most Likely to Grocery Shop Online

A new study shows men and young adults are more likely to be online shoppers of groceries. The NPD Group report, The Virtual Grocery Store, finds since many younger adults are delaying marriage and the formation of families, and many Boomers are becoming widowers, more than 40 percent of primary grocery shoppers are men and 60 percent of men, ages 18 to 44, have purchased groceries online. The report says the Internet is becoming the virtual grocery store for many American consumers with 52 million currently grocery shopping online. Grocery shopping online appeals to those who find grocery shopping a necessary evil and many of those who feel that way are men, according to the report. NPD has found that men tend to make grocery shopping a mission and spend less time in brick and mortar stores compared to women. Young adults of the Gen Z and Millennial generations, who were born and raised in the tech era, also favor grocery shopping online. 

Canadian pulse exporters temporarily settled a dispute with India

Canadian pulse exporters temporarily settled a dispute with India that had threatened to halt shipments valued last year at C$1.1 billion ($820 million).India, the world’s top consumer of lentils and peas, extended by three months an exemption that allows commodity imports to be fumigated upon arrival, according to the country’s Farm Ministry. A waiver had been scheduled to expire Friday that exempts shippers including Canada and the U.S. from having to fumigate pulses for pests before export.“We will maintain ongoing trade while officials on both sides continue to work towards a long-term science-based solution,” Canadian Minister of Agriculture Lawrence MacAulay and Minister of International Trade Francois-Philippe Champagne said Thursday in a joint statement.India had signaled last fall that it may end the fumigation exemption as it seeks to cut its dependence on pulse imports. The move sent North American prices tumbling almost 30 percent since January as temperatures are too cold most of the year to make fumigation effective in the northern U.S. and Canada, the world’s largest pulse exporter.Large green lentil prices have dropped 27 percent to 48 cents a pound in Canada since January, according to Brian Clancey, president and senior market analyst at Vancouver-based Stat Communications Ltd.Forty percent of Canada’s pulse crops that include dried peas are shipped to India and farmers harvested a record 3.2 million metric tons of lentils and 4.8 million tons of peas in 2016, government data show. In the U.S., pulse plantings surged last year as farmers sought alternatives to low-priced grain crops. Lentil production more than doubled to an all-time high, and dry edible pea output climbed 52 percent, U.S. Department of Agriculture data show.India’s extension means shipments in transit won’t be rejected when they arrive, Pete Klaiber, vice president of marketing at the Moscow, Idaho-based USA Dry Pea and Lentil Council, said in an email. The group will continue to work with the USDA to find a long-term solution to maintain market access while protecting India from pests, he said.The spat will probably be resolved as Canada is the main supplier of pulses to India and the current demand gap is growing by 1 million tons a year, Murad Al-Katib, chief executive officer of Saskatchewan-based AGT Food and Ingredients, the world’s largest exporter of peas and other pulses, said in a March 23 interview.Lentils and chickpeas are a staple for most of India’s 1.3 billion residents, and demand has been growing. India’s pulses demand was about 23.66 million tons in 2015-16, and domestic output is set to climb to a record 22.1 million tons in 2016-17, the government estimates. India is seeking to increase production to 24 million tons by 2021, according to the Farm Ministry.“When you look at the availability of pulses, this is not a nice to have, it’s a need to have,” Al-Katib said. 

EPA Administrator to Cattlemen: “You Care Deeply About Clean, Healthy Environment”

WASHINGTON (March 30, 2017) – U.S. EPA Administrator Scott Pruitt addressed cattlemen and women at the National Cattlemen’s Beef Association annual legislative conference today in Washington D.C. In his remarks, Administrator Pruitt said he is working to build a partnership between the agency and the men and women who serve as the stewards of our natural resources.“In Oklahoma, I saw first-hand that cattlemen care deeply about a clean and healthy environment, because their livelihoods depend on it,” said Pruitt. “Looking forward, we will build a partnership with landowners across the country and create commonsense rules that protect our environment.”Craig Uden, NCBA president, said he appreciated the candid comments and looks forward to working in collaboration the Administration.“After eight years of aggressive regulatory overreach, it is reassuring to have an Administrator that wants to work with our nation’s farmers and ranchers,” said Uden. “We are the front line in terms of environmental stewardship. A one-size-fits-all approach to environmental conservation simply doesn’t work, and we look forward to working with Administrator Pruitt to create an environment that incentivizes voluntary conservation and provides the flexibility needed for cattlemen and women to care for their land.”Pruitt’s appearance at NCBA’s annual legislative conference caps off an action-packed three days during which hundreds of cattle and beef producers stormed Capitol Hill, met with their Senators and Members of Congress about the issues that affect them, got updates from Administration officials, and helped announce the re-establishment of the Congressional Beef Caucus at a Capitol Hill news conference. 

USDA Accepting CSP Contract Renewals

Today USDA announced it is accepting contract renewal sign-up for the Conservation Stewardship Program (CSP).  CSP now has over 80 million acres enrolled and producers with contracts that expire on December 31 have until May 5th to apply for renewal.  Through the renewal process, producers will use the updated CSP program application and revised enhancements. Additional information on the CSP and the enhancements can be found on the NRCS website.  Producers are also encouraged to check with their local NRCS office for state specific details and to sign-up.  

Trump administration is considering imposing tariffs of 100 percent on some EU businesses

The Trump administration is considering imposing tariffs of 100 percent on Perrier mineral water, Vespa motor scooters and Roquefort cheese in response to the European Union’s (EU) ban on American beef from hormone-treated cattle, the Wall Street Journal reported. The beef case will offer an early demonstration of how aggressive the administration is likely to be with trading partners, according to the article.In 1998, the EU lost a case at the World Trade Organization for banning American beef. In 2009, the U.S. negotiated an agreement to allow limited market access for specially produced beef that meets EU standards, but the U.S. beef industry has been prevented from gaining the intended benefits from the agreement because of increased imports under the duty-free quota from non-U.S. suppliers.Separately, the Washington Post reported that the Trump administration will seek modest but numerous changes to the North American Free Trade Agreement (NAFTA), citing a draft of a letter sent to Congress last week.Trump last month downplayed the extent of changes he will seek in U.S./Canadian trade as he looks to re-negotiate NAFTA. 

Thursday, March 30, 2017

Feed barley prices dipped to $155 per metric ton delivered Lethbridge area earlier this month

Feed barley prices dipped to $155 per metric ton delivered Lethbridge area earlier this month, with reports of a modest increase into the $160 range since, but it may be unwise to expect the typical spring rally in feed prices.Over the past five crop years (2011/12 through 2015/16), feed barley prices have rallied an average of $31/mt, or 15.2%, from the early March low to the high reached as early as May 2 and as late as July 9, according to data reported by the Alberta Canola Producers Commission. The smallest increase was seen last crop year, when price increased $11/mt, or 5.3%, over this period.The recently released Canfax Alberta and Saskatchewan Cattle-On-Feed Report, March 1, 2017, shows the numbers in feedlots (1000+ head) estimated at 871,956 head as of March 1, down 6% from last year, while 5.7% below the five-year average.In addition to the lower numbers, increased feed supplies are also weighing on the market. Crop insurance claims point to 960,000 acres of unharvested grains in Alberta along with approximately 1.3 million acres in Saskatchewan, with a great deal of the cereals likely to be looking for a home in the feed market following the expected spring harvest.Current AAFC estimates include a year-over-year increase in durum expected to disappear in feed markets (Feed, Waste and Dockage category) at 875,000 mt, an increase of 437,000 mt of wheat along with an increased disappearance of 277,000 mt of barley, a combined increase of 1.6 million metric tons over 2016/17. At the same time, all three grains are expected to add substantially to ending stocks in 2016/17, with exports behind the expected pace, which could push a higher-than-expected volume into feed channels and weigh further on price. 

World's largest beer company announces it will buy 100% of its electricity from renewable energy sources by 2025

(DTN) -- On the same day President Donald Trump signed an executive order to end the Clean Power Plan, the world's largest beer company announced it would buy 100% of its electricity from renewable energy sources by 2025. Anheuser-Busch InBev will start renewable energy shifts in Mexico, which is home to the company's largest brewery. The company will be buying power from a major wind and solar project being built in Mexico. Trump's executive order actually states that it is in the national interest to produce "affordable, reliable, safe, secure and clean" energy whether it is from coal, natural gas, nuclear, water, or renewable energy. The executive order calls on agencies to remove rules that hinder the development of energy while rescinding several of former President Barack Obama's executive orders on clean energy. The White House also stops the production of federal climate action plans and strategies. EPA Administrator Scott Pruitt must also begin reviewing the agency's Clean Power Plan and consider withdrawing it. The White House also disbanded a federal working group that created a per-ton economic cost of carbon dioxide emissions called the social cost of carbon. The biggest move in Trump's order is lifting a moratorium that would open up federal lands to coal leases, which could increase fossil fuel production. The move will bring back jobs to the coal industry, the president said. "We will unlock job-producing natural gas, oil and shale energy," the president said. "We will produce American coal to power American industry." The executive order likely reflects that the Trump administration won't be advancing any efforts to reduce emissions from other industries, such as agriculture. That would prevent livestock farmers, for instance, from having to report emissions from livestock. Rescinding the Clean Power Plan likely will still require a long legal battle once the rulemaking process begins at EPA. If successful, it also likely means the U.S. doesn't have a plan for showing reduction in carbon emissions agreed to by the Obama administration in the Paris climate agreement in 2015. The U.S. had committed to reduce emissions by at least 26% from 2005 levels by 2025. The National Rural Electric Cooperative Association along with 39 rural power cooperatives petitioned the U.S. Court of Appeals in 2015 to reject the Clean Power Plan, leading to the current legal stay of the power rule by the Supreme Court. 

Notice for NAFTA Talks Planned for Week of April 3

The Trump administration hopes to notify Congress the week of April 3 of its intention to launch trade negotiations with Canada and Mexico, Democratic lawmakers said following a meeting with senior officials.Commerce Secretary Wilbur Ross told members of the House Ways and Means Committee that work on the notice to renegotiate and update the 1994 North American Free Trade Agreement (NAFTA) is on track and could be sent to Capitol Hill before the spring congressional recess, Rep. Sander Levin, D-Mich., said. Congress will adjourn from April 10 through April 21, going out of session April 7.The 90-day notice, required under Trade Promotion Authority (TPA/fast-track), would pave the way for talks to begin as early as July.The Mexican government would like to conclude the talks in 2017, Ross said during the closed-door meeting in the Ways and Means hearing room, adding that he would not hold up the negotiations. But Rep. Bill Pascrell, D., N.J., ranking member of the Subcommittee on Trade, said this timeline was not realistic.The Trump administration wants a "seamless transition" between the exiting NAFTA agreement and a modernized version, Ways and Means Committee Chairman Kevin Brady, R-Texas, said. He added that the administration is seeking to increase market access for U.S. agriculture, manufacturing and services.Ross, acting U.S. Trade Representative Stephen Vaughn and deputy general counsel Maria Pagan listened to lawmakers' concerns. But they offered few specifics in return on White House negotiating objectives or how they plan to address issues ranging from agricultural market access to labor standards.Ross told the committee that the Trump administration still has yet to decide what structure the deal will take, said Rep. Kristi Noem, R-S.D. "He hasn't necessarily decided whether it will be a bilateral or a trilateral agreement," said Noem, a member of the Subcommittee on Trade.On agriculture, some farm state lawmakers are worried about any rise in tensions with either Mexico or Canada during negotiations. "They're very good customers of ours today and we want to maintain that relationship, so in these negotiations we don't want to lose any market access," Noem said. When she raised the issue with Ross, she added, "He said he agreed with me, so I took it." 

Study Find Some Confusion Regarding New Fuel Choices

A new nationwide study has found Americans seem to remain confused about new fuel choices at the pump and their appropriate usage. The study was commissioned by the Outdoor Power Equipment Institute and surveyed more than 2,000 adults online. The poll found that more consumers have reported mis-fueling engines not recommended for ethanol blends higher than 10 percent, which includes small engine outdoor power equipment, increasing from three percent in 2015 to five percent in the most recent study. Study results show ethanol awareness in fuels remains steady, at 84 percent, and that 44 percent of outdoor power equipment owners are paying attention to the type of fuels they are using. Ethanol blends greater than 10 percent in small engines is not authorized by the Environmental Protection Agency. Regardless of the fuel, the Outdoor Power Equipment Institute says it’s also important to drain fuel out of small engines if they will be left unused for more than 30 days, or to add a fuel stabilizer.

Cargill Making a Case for International Trade

Cargill’s CEO took a stand for international trade during a speaking engagement this week. David MacLennan told the Financial Times Commodities Summit in Switzerland that the world is at a critical tipping point in international trade policy. He called on industries represented at the event to support the development of sound trade agreements and to be on guard against a growing sentiment toward more restrictive trade measures. MacLennan told the audience: “The success of our companies, our employees and the wider world depends on us making a strong, collective stand for trade.” In addition to advocating for comprehensive trade agreements, MacLennan argued for public policies that will result in the creation of a "new workforce paradigm" in which the public and private sectors work together to provide ongoing education and training to workers, including those whose jobs are threatened either by the consequences of trade, or by other factors such as greater implementation of robotics and information technology.

Report Names Ag Labor in Human Trafficking List

A new report on sex and labor trafficking in the United States places agriculture labor in the top 25 industries for human trafficking. The Typology of Modern Slavery report announced Wednesday breaks down instances of sex and labor trafficking into 25 distinct categories. The report ranked agriculture 11th in known instances of human trafficking. Specifically, the report classifies agriculture labor as “Agriculture and Animal Husbandry.” Restaurant and Food Service took the ninth spot on the list, which included a top ten dotted with several categories of sex trafficking. Construction ranked 14th, while manufacturing was listed as 20th, and forestry and logging took the 23rd spot. The report was commissioned by Polaris, a self-described leader in the global fight to eradicate modern slavery. The report relies on data gathered from Polaris-operated hotlines between December 2007 and December 2016. During that time, Polaris received reports of 32,200 cases of potential human trafficking and 10,000 potential cases of labor exploitation.

Farmers Union Urging trump to Oppose Dow-DuPont Merger

The National Farmers Union is asking President Donald Trump to oppose the merger between Dow and DuPont. NFU wants the administration to block the deal because of concerns it would lead to reduced competition and less innovation, as well as less choice and higher prices for farm inputs. NFU President Roger Johnson says: “If the Dow-DuPont and Bayer-Monsanto mergers were both approved, there would effectively be a duopoly in the corn and soybean seed markets.” Farmers Union says the merger of Dow and DuPont, the fourth and fifth largest firms, would give the resulting company about 41 percent of the market for corn seeds and 38 percent of the market for soybean seeds. The European Union approved the merger after Dow and DuPont agreed to sell off assets, including key research and development activities. The deal is still to be approved by regulators in the United States, Brazil, China, Australia and Canada. 

THE SUGAR BEAT

March 28, 2017 Big Candy Company Expands Abroad...in AmericaU.S. sugar prices are as low today as they were in the 1980s. Yet, candy company lobbyists falsely tell lawmakers prices are high as part of their campaign to gut no-cost sugar policy.Confectioners proved to be recession proof and added jobs during the Great Recession while other industries contracted. Yet, candy company lobbyists still claim they are struggling.There are more than 100 examples of sweetened-food manufacturers expanding in America since 2012. And last week, there was a major story of a huge candy company expanding into the United States.Here's how the Milwaukee Journal Sentinel reported the news:The German giant that originated the gummy bear will open its first North American candy factory in Pleasant Prairie [Wis.],  bringing hundreds of jobs and nearly a quarter-billion dollar investment to the rapidly growing border area, Gov. Scott Walker announced Thursday.Haribo of Bonn, Germany, will invest $242 million in the plant and create 400 jobs there when the factory opens in 2020, the GOP governor said."These are well-paying jobs above market (salary) and they tend to offer a full benefit package," Walker said at a Capitol news conference.That is great news for the U.S. economy and for U.S. beet and cane producers, who are eager to supply high-quality affordable sugar to the new candy production plant.So why did Haribo decide to build its first U.S. facility?Even though sugar prices have historically been higher in Europe than the United States, according to the International Sugar Organization, price probably had little to do with it. After all, there is less than 7 cents worth of sugars in a $2.87 bag of gummy bears.Europe subsidizes its sugar farmers to the tune of about $665 million a year, compared to an American policy that costs taxpayers $0. But, the decision probably wasn't policy driven either.Our guess is that Haribo's decision was made because America is a great place to do business. U.S. workers are the best in the world, U.S. technology is world class, and proximity to U.S. consumers and U.S. sugar producers is key.It kind of makes you wonder why the Big Candy lobby continues to push an agenda on Capitol Hill to outsource America's sugar production to less efficient subsidized foreign growers. 

EPA chief, Administrator Scott Pruitt was at President Donald Trump’s side as the president signed an executive order repealing the Waters of the U.S. rule

Just days into his tenure as EPA chief, Administrator Scott Pruitt was at President Donald Trump’s side as the president signed an executive order repealing the Waters of the U.S. rule. In an exclusive interview with the American Farm Bureau, Pruitt said the WOTUS repeal is ushering in a new era at EPA, one in which states have primacy and private property owners have certainty.  According to Pruitt, regulators totally missed the marked with WOTUS, going well beyond the authority afforded the agency under the Clean Water Act and writing a rule that had farmers, builders and many others fearful for their livelihoods. I’m so thankful that we are taking steps already to address this. The agency doesn’t have jurisdiction over puddles. [Regulators] don’t have jurisdiction over dry creek beds. People across the country can rest assured that we are going to get that fixed. —  EPA Administrator Scott Pruitt on WOTUSPruitt is particularly focused on restoring states’ leadership when it comes to the environment.“At the end of the day the goal has to be regulatory certainty, objectively measured, so that the role of the EPA and the role of the state departments of environmental quality, and the water resources boards and all those agencies at the state levels—as well as private property owners and towns and municipalities across the country that make land-use decisions—that their authority, their power, their decision-making is respected and that we stay in our lane,” he said.In that vein, Pruitt said the agency will no longer issue de facto rules under the guise of guidance.“Guidance is supposed to do what? It’s supposed to give you guidance in respect to rules that are already in existence,” Pruitt noted, emphasizing that there’s a well-defined rulemaking process designed to ensure that all stakeholders’ voices are heard by regulators.“We don’t have all the answers here, and when agencies make rules, they need to know how it impacts people in all the states across the country and they need to hear from those people and respond to those folks and say, ‘I hear you, and here’s how we’re going to address that and we think that’s an important point.’ That’s what rulemaking should be about,” he said.Acknowledging that there’s a time and place for enforcement, and, if need be, prosecution, Pruitt emphasized that the agency will first approach states as allies, rather than adversaries.“I really believe citizens care about the water they drink and the air they breathe. We need to believe that, trust that and restore that trust between this agency and the states,” he said. 

Cattlemen Applaud Re-establishment of Congressional Beef Caucus

WASHINGTON (March 29, 2017) – At a Capitol Hill news conference today, the National Cattlemen’s Beef Association (NCBA) applauded the re-establishment of the bipartisan Congressional Beef Caucus. The Beef Caucus will organize and educate Members of Congress and their staff on policy issues that impact America’s cattle and beef producers.The Congressional Beef Caucus will be co-chaired by U.S. Reps. Henry Cuellar (D-28thDistrict, Texas) and Kevin Yoder (R-3rd District, Kansas,) who joined NCBA at today’s news conference. The Beef Caucus currently stands 35 Members of Congress strong, hailing from 21 different states.“On behalf of America’s cattlemen and women, I want to thank Congressmen Cuellar, Yoder, and every other Member who has already joined the Congressional Beef Caucus – and I’d encourage every other Member of Congress to join today,” said NCBA President Craig Uden, a fourth-generation cattleman from Nebraska. “From trade to taxes, and from federal lands to the farm bill, there are many issues that affect our ability to help provide the world’s safest and most abundant food supply. The Beef Caucus will help us highlight those issues on Capitol Hill so lawmakers know how those policies affect cattle producers back home in their districts.”The announcement of the re-establishment of the Beef Caucus comes as hundreds of livestock producers storm Capitol Hill this week as part of NCBA’s and the Public Lands Council’s annual Legislative Conferences. The conferences kicked off on Tuesday, highlighted by a luncheon meeting with U.S. Interior Secretary Ryan Zinke. Today, NCBA members will fan out across Capitol Hill to talk with their Senators and Congressmen, and tomorrow will huddle with a variety of officials from the executive branch. 

Cattle feeding margins climbed $36 per head higher last week

Cattle feeding margins climbed $36 per head higher last week, for total average cash profits of $475. That’s $175 more than a month ago, and represents the 18 consecutive week of feedyard profitability, according to the Sterling Beef Profit Tracker. Feedyards have clearly held the marketing leverage for most of 2017, but packers are also enjoying healthy profits. Last week packer margins averaged $164 for every animal slaughtered, a $16 decrease from the previous week, but $147 better than a month ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore. Last week’s 5-area cash fed cattle price was steady at $128.11, about $10 higher than a month ago. The cost of finishing a steer was calculated at $1,307 per head, which is $625 less than the $1,932 a year ago. A month ago cattle feeders were earning $302 per head, while a year ago losses were calculated at $42 per head. Feeder cattle represent 72% of the cost of finishing a steer, compared to 78% last year. Farrow-to-finish pork producers earned $23 per hog last week, about $3 per head lower than the previous week. A month ago farrow-to-finish pork producers showed a profit of about $34 per head. Pork packers saw their margins decline $3 per head to $16. Negotiated prices for lean hogs were $68.03 per cwt. last week, about $1.21 per cwt. lower. Cash prices for fed cattle are $8 per cwt. lower than last year and prices for lean hogs are about $4 higher than last year. Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2017 will average $78 per cow. That would be $99 per head less than the estimated average profit of $177 for 2016. Estimated average cowcalf margins were $438 per cow in 2015. For feedyards, Nalivka projects an average profit of $133 per head in 2017, which compares favorably with average losses of $4.25 per head in 2016. Nalivka expects packer margins to average about $51 per head in 2017, down from $114 in 2016.   Cargill said stronger consumer demand for beef and higher cooked chicken exports out of Southeast Asia helped lift the company’s third-quarter earnings. Earnings in the animal nutrition and protein unit rose significantly against a weak year-ago period, the company said. Although below the earnings pace set in the first half, the North American protein business continued to benefit from renewed consumer demand for beef, which pulled more boxed beef and case-ready volume through its supply chain, Cargill said. In the poultry business, higher cooked chicken exports out of Southeast Asia and improved processing yields and fresh chicken sales in Europe gave an additional boost to results. Cargill’s adjusted operating earnings rose 50 percent to $715 million in the third quarter ended Feb. 28, from $476 million in the same quarter a year earlier. Net earnings rose 42 percent in the quarter, to $650 million from $459 million a year earlier, also lifted by improved results in the food ingredients business. Revenue increased 8 percent to $27.3 billion. BMO Capital Markets analyst Kenneth Zaslow said strong North American beef packer margins benefited from lower cattle prices and improved consumer demand. However, Cargill's margin strength likely occurred early in its quarter, as industry margins collapsed in February before recovering in March, Zaslow said in a note to clients after the earnings release.   

Wednesday, March 29, 2017

OMB Details Specific Fiscal 2017 Spending Cuts

The Office of Management and Budget has proposed $17.9 billion in specific spending cuts to offset higher proposed defense and border security spending in the current fiscal year, which ends September 30, according to a document.In a spreadsheet outlining the Fiscal 2017 reductions shared with some Republican lawmakers, the White House budget office suggests cutting Pell Grant funding by $1.3 billion; National Institutes of Health funding by $1.2 billion; and the Community Development Block Grant program by $1.5 billion, among billions of dollars in other reductions across federal agencies, including USDA. The document shows spending reductions spread across nine Appropriations subcommittees that allocate nondefense discretionary dollars.The department-by-department breakdown shows Trump is targeting domestic programs including education, health care and housing, as well as international food aid -- cuts that are in line with the administration's 'skinny budget' for next year.None of the spending reductions would go into effect without Congress' approval, and appropriators already were balking at such dramatic changes in current year funding. Negotiations are concluded on some spending bills.The proposal calls for about $1 billion in cuts to USDA's FY 2017 spending, including:$363 million from Food for Peace.$136 million cut to essentially eliminate funding for the McGovern-Dole international food program, a bipartisan initiative that feeds millions of schoolchildren throughout the world. "This program lacks evidence that it is being effectively implemented to reduce food insecurity," OMB said.A call for Congress to eliminate the funds USDA has left over from its last major fight against avian flu. USDA has $80 million to $90 million remaining from the $1 billion Congress gave it to fight avian flu in 2015, Jack Shere, the department's chief veterinary officer, said last Thursday, Reuters reported. The budget document said that the administration is proposing to strike $50 million in funds from USDA's Animal and Plant Health Inspection Service that represents "a proposed rescission for APHIS' unobligated balances from the transfer of no-year CCC funds in FY15 to respond to the Highly Pathogenic Avian Influenza (HPAI) outbreak. The response to the FY15 outbreak is complete, and USDA should still have enough balances to respond to the two recent HPAI outbreaks in TN this year."***Mexico Given US Sugar Trade Proposal Last Friday
This Wednesday, the U.S. expects to see Mexico's reaction to its latest proposal on how to manage sugar imports, a Commerce Department official said. The Commerce Department submitted its formal position on Friday and expects to resume face-to-face talks in Washington soon, the official said.The two countries agreed earlier this month to continue efforts to salvage the trade suspension agreements, which hold off antidumping and countervailing duties on Mexican sugar imports in favor of an arrangement that manages trade by setting minimum prices and quantitative restrictions. Commerce was set to issue a final determination in an administrative review of the deals by April 4 but the deadline was extended to May 1, Commerce Secretary Wilbur Ross said after a March 10 meeting with Mexican Economy Secretary Ildefonso Guajardo Villarreal.U.S. sugar producers want the agreements to be modified to avoid alleged circumvention of restrictions on how much refined sugar Mexico can export under the deal. Mexican producers have been accused of shipping semi-refined sugar that needs minimal processing yet avoids quantitative restrictions on refined sugar exports. U.S. refiners said they have been impacted by a shortage of raw sugar supplies.Washington Insider: Ag Trade Reality
Because trade was firmly linked rhetorically to U.S. job losses during the campaign, there has been a lot of angst among ag interests regarding what new administration policies might turn out to be. It was widely noticed that Ag Sec nominee Sonny Purdue went to great pains in his confirmation hearing las week to commit to strong support for trade.Earlier, Ray Starling, special assistant to the president on agriculture, agricultural trade and food assistance, told the press that the White House has been meeting with representatives of the industry to discuss concerns over the U.S. withdrawal from the Trans-Pacific Partnership trade deal and the proposed renegotiation of NAFTA."I think a lot of people on the ag front feel like what we got out of our NAFTA was generally good and that we certainly don't want to regress on any of the gains that we made there for ag," Starling had been speaking to a "National Ag Day" event organized by the Agriculture Council of America.However, this week there was bad news from Mexico in spite of Starling's upbeat assessment. The Financial Times is reporting that Mexico, the largest buyer of U.S. corn is considering offering duty-free access to attract Brazilian and Argentine corn as an alternative to imports from the United States. Such a move could have "big consequences for U.S. farmers" already worried about the administration's trade and tax agenda, FT reported.Mexico at present imports 98% of its corn from the U.S., and total U.S. farm sales to Mexico were $17.7 billion last year — five times greater than when the NAFTA came into force in 1994, FT says. Mexican corn imports from the U.S. were worth $2.3 billion in 2015, according to USDA. Nevertheless, the administration has said NAFTA is unfair to the U.S. and has vowed to renegotiate the deal or walk away. This threat is impelling Mexico to speed up a search for alternative suppliers in South America, FT says."I am pretty optimistic about the possibility of having a deal with these countries soon," Juan Carlos Baker, Mexico's deputy economy minister, told the FT. "We're pretty far advanced with Brazil... Argentina is a few steps behind," he said, adding that he expected to visit Argentina in April or May and soon after to meet Brazilian officials in his sixth such bilateral meeting since 2015. Baker said Mexico could give South American producers the same terms U.S. farmers now enjoyed. "It's going to be the result of negotiations but... if we want to give zero [tariffs], we have the possibility, if it suits us," he said.The Times also says U.S. rice industry concerns may be growing about Mexico's efforts to source commodities from countries other than the U.S. It reports that U.S. rice saw a 31.4% jump in shipments over the first two months of 2017 compared to the same period in 2016, and that milled rice exports to Mexico nearly tripled to 22,478 metric tons, "nearly half of total milled exports in all of 2016." "Two months do not a trend make, but it's very good news," said Hugh Maginnis, USA Rice's vice president international. The FT suggests that producers worry that recent trade increases could be at risk from Mexico's search for alternative suppliers.Also this week, White House strategy advisor Steve Bannon, who is no fan of trade, told Politico that the White House would be more active on policy issues in the future and mentioned a new Executive order on trade.Thus, while ag advocates have been comforted some by growing administration outreach efforts on trade, especially from Governor Perdue, they also are worried by evidence that existing market ties are being weakened by lingering campaign rhetoric and by fights over immigration and other social issues. While the Perdue hearing showed strong political support for the sector, it also indicated that the new secretary faces severe challenges as the new administration works to put its political stamp on national economic and trade policy, Washington Insider believes. 

American Farm Bureau Federation, the National Farmers Union and six groups representing commodities grown mostly in the northern states have reached consensus on a series of farm bill proposals

The American Farm Bureau Federation, the National Farmers Union and six groups representing commodities grown mostly in the northern states have reached consensus on a series of farm bill proposals, but groups representing generally southern crops have not signed off on them.The coalition, which includes the American Soybean Association, the National Association of Wheat Growers, the National Barley Growers Association, the National Corn Growers Association, the National Sunflower Association, the U.S. Canola Association as well Farm Bureau and the NFU, reached agreement on a number of issues.Their agreement was attached to the testimony submitted by the wheat growers and the soybean growers Tuesday at a House Agriculture subcommittee hearing on part of Title I, the commodity title of the next farm bill.But the addendum to the testimony also contained the following note: “The National Cotton Council, Southern Peanut Farmers Federation and USA Rice have also participated in these discussions but do not have sufficient policy yet to support these provisions. All three of those groups, as well as those listed on this statement, intend to continue to work together to see if we can come to further agreements on these and other 2018 farm bill issues.”The document says the groups in the coalition have reached consensus on the following points:Overarching issues- Increase funding in the 2018 Farm Bill in order to address the significant reductions in farm prices and income incurred since 2013, and to meet other critical needs.- Federal crop insurance and commodity programs are our top funding priorities.Commodity programs- Change the ARC [Agricultural Risk Coverage] and PLC [Price Loss Coverage] programs to make them more effective and fairer to all farmers.- If the ARC and PLC programs continue, farmers must be allowed to re-elect and re-enroll on a crop-by-crop basis.- Commodity program payments should be based on recent historical crop production rather than on current year planting.Crop insurance programs- Oppose reducing premium discounts.- Continue a counter-cyclical program like the PLC program and a revenue program like the ARC program.Conservation programs- Maintain strong funding for federal conservation programs which preserve environmental benefits, while continuing the prioritization of working lands conservation programs.- Maintain strong funding of the Environmental Quality Incentives Program and the Conservation Stewardship Program.- Examine the rental rates of the Conservation Reserve Program and the Conservation Reserve Enhancement Program annually at enrollment to ensure they mirror the rental rates of comparable land in the immediate area.- Improve State Technical Committees to make them more ag-friendly by encouraging producers’ participation and input.Other programs- Ensure adequate funding for agricultural research and education.- Continue work on simplifying procedures, reducing paperwork requirements and streamlining interactions between the Farm Service Agency, the Natural Resources Conservation Service and the Risk Management Agency via the Acreage Crop Reporting Streamlining Initiative.- Continue and work to improve the Young and Beginning Farmer Programs implemented in the 2014 farm bill.

Senate Ag Schedules Perdue Confirmation Vote

The Senate Agriculture Committee will hold a business meeting Wednesday to consider the nomination of Sonny Perdue as Agriculture Secretary. Committee Chairman, Republican Senator Pat Roberts of Kansas, announced the meeting Tuesday. A favorable vote for Perdue will move the former Georgia Governor a step closer to taking his post at the U.S. Department of Agriculture. It’s unclear, however, whether the full Senate will then move to confirm Perdue before it leaves for its two-week April recess at the end of next week. The Atlanta Constitution-Journal reports that if senators don’t get to Perdue before they leave, he won’t be able to get sworn in until the last week of April, at the earliest. When asked if the Senate will confirm Perdue before the Easter break, Chairman Roberts replied: “Hope springs eternal.”

Trump Document Proposes Cuts to 2017 USDA, FDA Spending

An internal budget document by the Donald Trump administration outlines a plan to cut funding to the Department of Agriculture and Food and Drug Administration this fiscal year. The document, sent to the House and Senate appropriations committees last week and obtained by Politico, offers detailed recommendations to make $18 billion of cuts in spending legislation that lawmakers must enact by April 28th to avoid a government shutdown. The cuts are aimed at the last five months of the current fiscal year and would compound the 21 percent proposed reduction for USDA that the administration included in its 2018 budget outline. The proposal includes a $40 million cut to the FDA, a $363 million cut from the Food for Peace program, a $136 million cut to eliminate funding for the McGovern-Dole food program and a $49 million cut to Rural Business and Cooperative Grant Programs

Judge Approves Settlement to Protect Farmers’ Privacy

The American Farm Bureau Federation and the National Pork Producers Council this week closed the final chapter of their lawsuit challenging the Environmental Protection Agency’s release of farmer and rancher personal information. A federal judge has approved a settlement that secures the private information of thousands of livestock and poultry farmers in 36 states. AFBF and NPPC filed the lawsuit in 2013 after EPA released a compilation of spreadsheets containing personal information about farmers and ranchers in 29 states who raise livestock and poultry. In some cases, the data included the names of farmers, ranchers and sometimes other family members, home addresses, email addresses, GPS coordinates and phone numbers. EPA was poised at that time to release more spreadsheets containing similar information on farmers in an additional six states. The settlement agreement, reached with current EPA Administrator Scott Pruitt, eliminates the need for a court order by spelling out exactly what information can remain in the spreadsheets released by the agency: only the city, county, zip code and permit status of an operation will be released.

Beef Industry Urges Trump to Talk Trade with China

The National Cattlemen’s Beef Association is urging President Donald Trump to raise the restoration of U.S. Beef access to China when he meets with China’s President next month. NCBA signed a letter, along with the U.S. Meat Export Federation and the North American Meat Institute asking the President to talk beef trade with Chinese President Xi Jinping (she-gin-ping) in April at Trump’s Mar-a-Lago resort in Florida. American beef producers have been denied access to China, a $2.6 billion import market, since 2003. Last fall China announced that it had lifted its ban on imports of U.S. beef, but attempts since then to negotiate the technical terms of access have been unsuccessful. NCBA CEO Kendal Frazier told Trump in the letter that "we strongly encourage you to take this important opportunity to convey the urgent need for China to reopen its market to U.S. beef." In 2016, American beef producers sold $6.3 billion worth of U.S. beef to customers around the world, with three of the industry's top foreign markets located in Asia.

No Farm Bill Without SNAP

The Ranking member of the House Agriculture Subcommittee on Nutrition says there will be no farm bill without the Supplemental Nutrition Assistance Program, or SNAP. Democrat James McGovern of Massachusetts at the opening of a hearing titled The Next Farm Bill: The Future of SNAP, warned lawmakers, by saying “don’t even think of separating the nutrition title from the farm bill.” He said such a move would be a “huge mistake” and guaranteed there “will be no farm bill,” if the committee separates SNAP from the farm bill. Further, he wanted the House Agriculture Committee to not “screw around with the program.” McGovern says there is no reason to undermine SNAP through structural changes or further restrictions. McGovern says he has read reports that the committee may consider changing provisions to able-bodied adults without dependents. However, he says, the committee needs to find a way to make SNAP better, including increasing SNAP benefits.

NFU Says EPA Executive Order Reverses Climate Change Progress

In a sweeping and regressive executive order on energy, The National Farmers Union says President Donald Trump reversed years of progress in the U.S.-led fight against climate change. The order dismantles Obama-era policies that NFU says prepare the United States to mitigate and adapt to the effects of climate change. Farmers Union President Roger Johnson says the order “sends a very clear message to Americans and the rest of the world that our country will not lead the global effort to curtail climate change.” Trump’s executive order rescinds more than half a dozen federal regulations and guidance that aid in making the U.S. food system more climate resilient, according to NFU. This includes an August 2016 White House guidance for federal agencies to consider climate change in environmental reviews and a November 2013 order instructing the federal government to prepare for the impacts of climate change. Johnson says the Obama-era climate policies “created a path of sustainability” for farmers dealing with climate change by curbing carbon emissions that trap heat and change the climate. 

Secretary Zinke Headlines Public Lands Council Legislative Fly-in

 WASHINGTON (March 28, 2017) – U.S. Department of Interior Secretary Ryan Zinke addressed the livestock grazing industry today during the annual Public Lands Council’s legislative fly-in, in Washington D.C. Secretary Zinke said the agency hasn’t been the best neighbor, but he will be holding the agency accountable and will restore trust in the department.

“We're going to manage our properties just like you (ranchers) would manage your private lands,” said Zinke. “ Washington D.C. needs to understand that we work for the people, not the other way around.”

The Public Lands Council represents the 22,000 ranchers that utilize grazing permits on federal lands. PLC President Dave Eliason said Zinke was a welcomed addition to the conference and that the ranchers are looking forward to his tenure with the Interior Department.

“Secretary Zinke has consistently been an advocate for western communities that depend on the ranching industry,” said Eliason. “Ranchers have been marginalized and overlooked during planning processes for far too long. We believe Secretary Zinke will bring stakeholders back to table and stand up for those that have invested their time and livelihoods into the management and improvement of our federal lands. We look forward to working with him in his new role and restoring balance to the management of our Western Lands.”

Colorado State University Begins Construction On Food Safety Facility

Colorado State University said Tuesday it has begun construction of a $15 million facility to help advance best practices in food safety, meat sciences and animal welfare, helped by a major gift from JBS USA.The JBS Global Food Innovation Center in Honor of Gary & Kay Smith will enhance CSU’s teaching and research in meat sciences, as well as offer a space for industry collaboration through continuing education and training, and equipment development and testing. Students will learn about meat processing in a hands-on environment that is not currently available in existing CSU facilities.JBS has entered into a strategic partnership with Colorado State University that is currently valued at $12.5 million. That includes a $7.5 million philanthropic contribution to build the innovation center and a $5 million employee educational programming investment.“The JBS gift to Colorado State University is an investment in the future competitiveness of food and farming in the state of Colorado and across the United States,” said Wesley Batista, Global CEO of JBS, in a news release. “JBS is a people-focused company, which means that empowering and creating opportunities for young people is at the heart of our culture. We envision this facility as a place that will allow the best and brightest CSU students to innovate, discover and explore as they prepare for future careers in the industry.”  The new facility is named after Professor Emeritus Gary Smith and his late wife, Kay. Smith spent more than 20 years as a professor in CSU’s Department of Animal Sciences. Smith, a world-renowned expert in meat science and food safety, is a University Distinguished Professor Emeritus and serves as a visiting professor of animal sciences and special advisor to CSU President Tony Frank. The agricultural industry has long relied on Smith’s expertise and innovations in food safety.For decades, CSU’s Meat Sciences program has played a leading role in advising industry and producing innovations that have helped ensure meat products are safe and secure. For example, the new facility will have spaces dedicated to testing packaging and developing food products, reflecting the fact that ready-to-eat foods and packaging are growing areas within the meat industry. Additionally, the new building will have a culinary kitchen and demonstration area as well as a retail meat and dairy store with a café.The facility will also include an educational space designed by CSU professor Temple Grandin, where students will learn about animal handling and welfare in a hands-on setting. Led by Grandin, a world-renowned professor of animal sciences and animal welfare expert, CSU has played a leading role in enhancements to animal handling and wellbeing.“Many of our most promising young team members come to JBS from Colorado State University,” said Andre Nogueira, CEO of JBS USA. “While we enjoy a global presence, the location of our North American headquarters in Greeley makes Colorado a special place for our company. The innovation and education that will take place in this new facility will help to train the next generation of dynamic food and agricultural leaders in Colorado and across the nation.”“This remarkable gift solidifies the long-standing partnership that CSU and JBS have built over the years,” said Brett Anderson, vice president for University Advancement. “It helps us create a platform to deliver the world’s leading science and education in food, food systems, and food safety. It allows CSU to continue to pursue excellence and innovation in agriculture and prepare future industry leaders.” 

Tuesday, March 28, 2017

Mexico Considering Duty-free Corn Trade with Brazil, Argentina

Mexico is mulling over drafting trade agreements that offer Brazil and Argentina duty-free access to the Mexican market for corn. Mexico is the world's biggest buyer of U.S. corn, and the potential move by Mexico is seen as a shift away from American imports, according to DTN. An eagerness to renegotiate the North American Free Trade Agreement by President Donald Trump has corn buyers in Mexico concerned and exploring other options. Trump has called NAFTA unfair to the U.S. and has vowed to renegotiate the deal or walk away. Mexico currently imports 98 percent of its corn from the U.S. and total U.S. farm sales to Mexico were worth an estimated $17.7 billion last year, five times greater than when NAFTA came into force. The U.S. Department of Agriculture says corn imports by Mexico from the U.S. were worth $2.3 billion in 2015.

Singapore Plans to Ratify TPP

Singapore will push forward to ratify the Trans-Pacific Partnership, a change from other nations taking a wait and see approach after President Donald Trump withdrew the U.S. from the trade agreement. While the effort may be mostly symbolic, it does signal to other TPP nations that Singapore is still open to the agreement without the United States. Singapore’s Prime Minister said during a visit to TPP member nation Viet Nam last week that “Singapore is proceeding with the ratification,” according to online publication World Trade News. After Trump’s move, Singapore’s Ministry of Trade and Industry had said that it would be focusing on other regional trade initiatives as TPP cannot come into effect in its current state. A Singapore trade official says that ratifying TPP is an effort by the country to "study the new balance of benefits" with other TPP members. Singapore is interested in either bilateral deals with TPP member countries or implementing TPP without the United States. U.S. agricultural exports included in the trade agreement were estimated to be worth $4 billion.

Avian Influenza Spreads to Georgia

Georgia, the nation’s top poultry-producing state, confirmed Monday the likely presence of low pathogenic avian influenza. The state's agriculture department confirmed the presumptive low pathogenic avian influenza in a northwestern Georgia county that borders Alabama and is near Tennessee, the sites of other reported avian influenza cases. The virus was identified during routine pre-sale screening for a commercial facility and was confirmed as H7 avian influenza by the U.S. Department of Agriculture's National Veterinary Services Laboratory. As a precaution, the affected flock has been depopulated. Officials are testing and monitoring other flocks within the surveillance area and no other flocks have tested positive or experienced any clinical signs. Poultry contributes $25.9 billion to Georgia's economy and accounts for 104,000 jobs in the state.

China, Others, Resume Meat Imports from Brazil

Bans on meat imports from Brazil following the announced investigation into alleged bribery over meat safety issues were short-lived as China, Chile and Egypt have resumed imports from Brazil. Meat industry publication Meatingplace reports the temporary bans by the three nations were lifted over the weekend. However, meat purchases from the processing plants under investigation will remain suspended. The countries were among more than a dozen nations that have restricted purchases from Brazil, following the March 17th announcement of an investigation into alleged corruption involving 33 public sanitary inspectors and 21 meat processing plants. The decisions to resume purchases brings some relief to the Brazilian meat industry, which accumulated millions of dollars in losses last week due to the temporary bans. China alone is the second largest importer of Brazilian poultry and the third largest buyer of pork.

EU Approves Dow DuPont Merger with Agreement to Sell R&D Assets

The European Union has approved the Dow DuPont merger after the companies agreed to sell substantial assets including key research and development activities. The EU approved the $130 billion deal Monday after Dow and DuPont agreed to address concerns that the merger would leave few incentives to produce new crop protection products in the future. An EU spokesperson taking part in the review of the merger said the decision “ensures that the merger between Dow and DuPont does not reduce price competition for existing pesticides or innovation for safer and better products in the future.” In return for the EU approval, DuPont will divest large parts of its global pesticides business, including its global research and development organization, according to Reuters. Dow, in turn, will sell two acid co-polymer manufacturing facilities in Spain and the United States. The deal is still to be approved by regulators in the United States, Brazil, China, Australia and Canada, but the companies said they were confident of clearance in all remaining jurisdictions.

President Signs Resolution to Repeal BLM Planning 2.0

President Donald Trump Monday signed a congressional resolution directing the Bureau of Land Management to repeal their Planning 2.0 Rule. The resolution was supported by the National Cattlemen's Beef Association, the American Farm Bureau, and others. The American Farm Bureau had suggested the rule, which was finalized in December, would negatively impact federal lands use. Ethan Lane, executive director of the Public Lands Council, applauded the action and called it a significant victory for western ranchers. He says the rule would have caused a wholesale shift in management focus at BLM by prioritizing social and environmental change over ensuring the multiple use of public lands. Lane says the Public Lands Council looks forward “to working with the new Administration to bring together a streamlined planning process that works for livestock ranchers and the western communities that depend on the use of BLM lands.” 

NCBA Praises Trump For Resolution

The National Cattlemen’s Beef Association on Monday praised President Donald Trump for signing a congressional resolution directing the Bureau of Land Management to repeal their Planning 2.0 Rule. NCBA also urged Trump to press China to let U.S. beef enter its market. Ethan Lane, executive director of the Public Lands Council and the NCBA Federal Lands, called the signature a significant victory for western ranchers.“BLM’s Planning 2.0 Rule would have caused a wholesale shift in management focus at BLM by prioritizing ‘social and environmental change’ over ensuring the multiple use of public lands,” said Lane.NCBA also sent a letter to Trump, urging him to raise restoring U.S. beef access to China when he meets with Chinese President Xi Jinping in April. Leaders from the U.S. Meat Export Federation and the North American Meat Institute also signed the letter.U.S. beef has been denied access to China since 2003. Last fall China announced that it had lifted its ban on imports of U.S. beef, but attempts since then to negotiate the technical terms of access have been unsuccessful.GIPSA pleaLast week, NCBA, along with the National Pork Producers Council, the National Turkey Federation, the National Chicken Council and the Meat Institute issued public statements asking the Trump administration to rescind a Grain Inspection, Packers and Stockyards Administration (GIPSA) interim final rule and withdraw the proposed rules that would give producers more power in legal challenges with processors.Congress had blocked the rules multiple times since they were proposed in 2010, but failed to block them in 2016, allowing GIPSA to move ahead in the final weeks of the Obama Administration.The so-called “scope” interim final rule would make it unnecessary for a producer to show harm to competition generally when challenging a particular practice by a packer. 

Recent Bills Give Boost To Youth In AG Allowing 4-H And FFA Students To Keep More Income They Earn

A pair of recently introduced bills gives a boost to young people in agriculture by allowing 4-H and FFA students to keep more of the modest income they earn. The students can turn around and put the money toward their education or future agricultural projects.                     The Agriculture Students Encourage, Acknowledge, Reward, Nurture (EARN) Act (S. 671) and the Student Agriculture Protection Act (SAPA) (H.R. 1626) would create a tax exemption for the first $5,000 of income students 18 years of age or younger earn from projects completed through 4-H or FFA.The Farm Bureau-supported measures were introduced by Sens. Jerry Moran (R-Kan.) and Joni Ernst (R-Iowa) and Rep. Michael McCaul (R-Texas). “The long-term sustainability of agriculture depends on talented young people pursuing careers in farming and ranching and other agricultural production and food chain professions. Student agricultural projects increase awareness of and foster an interest in fields of study that will provide the next generation of farmers and ranchers, food scientists, agricultural engineers, agronomists, horticulturalists and soil scientists,” American Farm Bureau Federation President Zippy Duvall said in a letter to Moran, Ernst and McCaul. 

Monday, March 27, 2017

China reopens its consumer market to Brazilian meat exports

(Dow Jones) -- China reopened its consumer market to Brazilian meat exports, officials in the South American country said Saturday, after a scare over alleged corruption in Brazil's sanitary inspection services prompted major importers to bar shipments.After a week of frantic negotiations, Brazilian Agriculture Minister Blairo Maggi said China had lifted "preventive measures" put in place to keep Brazilian meat from reaching consumers."This is a categorical testament to the robustness and quality of the Brazilian sanitary system," Maggi said in a statement.China, the biggest importer of Brazilian meat, was among a number of countries to impose trade restrictions after Brazil's Federal Police alleged on March 17 that 21 meatpacking plants had committed violations that included bribing health inspectors for certificates.The investigation, dubbed Weak Flesh, left Brazil cut off from some of its most important export markets, including China, Egypt and the European Union.China's reopening didn't apply to the 21 plants under investigation, nor to any meat inspected by the officials accused of corruption.With the economic cost of the restrictions mounting, Brazilian officials hope other nations will follow in China's footsteps. A delegation from the European Union, Brazil's No. 2 market for meat exports, is visiting the South American country in coming days to meet with health and food-safety officials."China, with this decision, shows that it understood that there were problems with a few meatpackers that don't reflect the entire system," said Pericles Salazar, head of an association that represents small and medium-size slaughterhouses in Brazil. "China's decision is going to stimulate other countries to lift sanctions." 

AG Producers Lobbying For NAFTA Renegotiation

(Dow Jones) -- U.S. agricultural producers are lobbying hard on both sides of the Mexico border to try to ensure that a renegotiation of the North American Free Trade Agreement doesn't turn U.S. farm exports into collateral damage.Farm groups are making their case in Washington in the hopes that changes to the 23-year-old trade deal don't hurt what has become the No. 1 market for many U.S. grain, meat and dairy products, often from states that supported President Donald Trump in the election.Agriculture groups have also been flocking to Mexico in recent weeks to strengthen ties with clients and the government amid rising concerns that Mexico could slap retaliatory tariffs on goods if the U.S. pulls out of Nafta.Mexico Foreign Minister Luis Videgaray raised that threat last month, saying that retaliatory duties could be used as a response to unilateral trade barriers. In 2009, Mexico did just that: following a dispute over allowing Mexican trucks to cross the border, Mexico put import tariffs on up to 99 products, affecting some $2 billion in U.S. farm exports."We've got to have export markets, it's that simple. We can't survive without them," said Phillip Councell, chairman of the U.S. Grains Council, a Washington-based organization which promotes grains exports. Mr. Councell, who farms nearly 2,000 acres of grain and vegetables in eastern Maryland, was part of a delegation that visited Mexican officials and clients in mid-March.Mr. Trump has called Nafta -- which also includes Canada -- "the worst trade pact" the U.S. has ever made, saying it is responsible for millions of factory jobs being lost to Mexico. He has said that he expected talks to begin this year, and that they would either revamp the pact in favor of American workers or he would scrap it altogether.Mr. Trump has also asserted his support for U.S. farmers. "As my Administration fights for better trade deals, agriculture will be an important consideration so that its significant contributions will only increase in the years ahead," he wrote on Tuesday.Nafta has greatly aided the industrialization of Mexico as U.S. firms built factories to supply American consumers. But Mexico also made significant concessions in the pact by opening its markets to more efficient U.S. and Canadian farmers -- at the expense of many poor, small Mexican farms.U.S. farm imports are now critical for Mexico's food supply, providing all of the country's corn and sorghum imports, for example.Mexico has about a $60 billion trade surplus with the U.S., mostly due to manufactured products such as cars. In turn, Mexico enjoys a surplus of $7 billion in agricultural products, providing U.S. consumers with winter vegetables such as tomatoes and fruits.U.S. farmers have expressed concerns about Mr. Trump's trade agenda and its focus on manufacturing. This month, 11 major farm groups met with Gary Cohn, director of the National Economic Council, a White House office that advises the president."Our big concern is touching Nafta at all: It's hard for us to improve on our access to Canada and Mexico," said Kent Bacus, director of international trade and market access at the National Cattlemen's Beef Association.The White House and the U.S. Trade Representative declined to comment on the farmers' message about Nafta.Commerce Secretary Wilbur Ross, during his confirmation hearing earlier this year, suggested the U.S. has the upper hand. Since many trading partners depend on food imports, the U.S. can use its competitive edge in agriculture in trade talks, he said.But the U.S. farm lobby wants the administration to remember that Mexico has leverage, too. With the productivity of U.S. agriculture growing faster than domestic demand, the sector relies heavily on exports to sustain prices and revenue.U.S. farm exports to Mexico totaled close to $18 billion last year, according to U.S. trade figures, compared with $4.2 billion in 1994, the year Nafta was signed.Mexico is also seeking to lessen its dependence on U.S. farm products as Nafta talks loom. "We have increased and accelerated our visits to countries for the purpose of quickly further diversifying Mexican imports," Secretary of Agriculture José Calzada Rovirosa said recently in announcing trade missions to Asia and Europe.U.S. lobbyists said their meetings with Mexican officials were constructive and that local clients seemed reassured. Mexico's Economy Ministry, which leads Nafta's renegotiation, declined to comment on the talks with these groups.Should talks on Nafta break down, Mexico's retaliatory tariffs in 2009 are an example of what could happen. Mexico imposed the tariffs after it won a Nafta dispute resolution that the U.S. had unfairly blocked Mexican trucks from U.S. roads.Though the $2 billion of targeted goods -- including Oregon Christmas trees, certain California fruits and frozen ham -- represented a fraction of total bilateral trade, they were carefully chosen to have an impact on certain congressional districts, to put pressure on the U.S. to comply with the ruling."The products were chosen in a political way," said Luis de la Calle, a former Mexican official who participated in the negotiations to create Nafta. The retaliatory measures forced the U.S. government to change its policy. "The lesson is very clear: retaliatory measures work."Tom Vilsack, president of the U.S. Dairy Export Council and the Obama administration's agricultural secretary, said producers are working to convince U.S. legislators and policy makers that the possibility of a punitive reaction on agriculture exports is real."If we do our jobs, we should hopefully avoid ever putting the Mexican government in a position where they feel compelled to take a look at a reaction," he said after a day of meetings with clients and authorities in Mexico City. 

European Union has approved the proposed merger of Dow Chemical and Du Pont

The European Union has approved the proposed merger of Dow Chemical and Du Pont, saying that the companies' commitments to divest businesses have addressed its concerns.Both plan to join in a $62 billion deal and then break apart into three separate, publicly traded companies. The companies would focus on agriculture, material science, and the production and sale of specialty products.EU antitrust chief Margrethe Vestager said Monday that the bloc's conditional approval ensures that the merger "does not reduce price competition for existing pesticides or innovation for safer and better products in the future."Dow and DuPont said in February they were willing to divest more business to address concerns. The EU says they will sell DuPont pesticide businesses and "almost the entirety of DuPont's global R&D organization."

Mexico Considers Duty-Free Corn Deals With Brazil, Argentina: Financial Times

Mexico, the world's biggest buyer of U.S. corn, is considering offering duty-free access to Brazilian and Argentine corn as an alternative to American imports in a move that could have big consequences for U.S. farmers worried about Donald Trump's trade and tax agenda, the Financial Times reported.Mexico at present imports 98% of its corn from the U.S., and total U.S. farm sales to Mexico were $17.7 billion last year — five times greater than when the North American Free Trade Agreement (NAFTA) came into force in 1994. Mexican corn imports from the U.S. were worth $2.3 billion in 2015, according to USDA.But President Donald Trump has said NAFTA is unfair to the U.S. and has vowed to renegotiate the deal or walk away, impelling Mexico to speed up a search for alternative suppliers in South America. "I am pretty optimistic about the possibility of having a deal with these countries soon," Juan Carlos Baker, Mexico's deputy economy minister, told the Financial Times in an interview. "We're pretty far advanced with Brazil... Argentina is a few steps behind," he said, adding that he expected to visit Argentina in April or May and soon after to meet Brazilian officials in his sixth such bilateral meeting since 2015.Baker said Mexico could give South American producers the same terms U.S. farmers now enjoyed. "It's going to be the result of negotiations but... if we want to give zero [tariffs], we have the possibility, if it suits us," he said.

Livestock and Poultry Groups Appeal To USDA To Kill GIPSA Rule

The meatpacking industry has joined livestock and poultry groups in asking the Trump administration to withdraw a rule that would set standards of proof for challenging marketing practices in the livestock and poultry industry.The rule, which the outgoing Obama administration issued in December, is set to take effect April 22. The interim final rule is intended to aid producers in challenging processor contracting and buying practices.In comments to USDA, the North American Meat Institute, which represents packing companies, said the rule would "set in motion a cascade of litigation" that would "roll back the significant process" that the industry has made in meeting consumer demands. But some farmers who support the rule say they have been unfairly required to prove that they harmed the entire market.The new rule would tell courts that a practice can violate the Packers and Stockyards Act without a legal finding of harm to competition. 

Black Market Hackers Selling Tractor Repair Software Illegally

A battle is brewing in at least eight states over “right-to-repair” legislation. Tractors have gone high tech and often require software downloads to aid in the repair process. Fox News Tech Dot Com reports that software hackers overseas are creating and selling hacks to John Deere software. Local repair shops in America’s farm country are downloading the hacks and using them to repair the company’s tractors. The article says when farmers are in crunch-time, like harvest, they usually don’t have time to wait for a dealership employee to come out and authorize a download to help with repairs. But farmers who buy John Deere equipment have to sign a license agreement that doesn’t allow virtually all types of unauthorized repair and modification to the software embedded in most of the new machines. The agreement allows repairs to the actual machinery but no work on the software.  Nebraska is one of eight states considering the “right-to-repair” legislation that would invalidate the John Deere licensing agreement. It would also prevent farmers from suing for "crop loss, lost profits, loss of goodwill, or loss of use of equipment arising from the performance or non-performance of any aspect of the software." John Deere is against the legislation, noting that any non-authorized modifications to the software increase the risk that the machinery won’t work as designed.

JBS Suspends Brazil Product After Meat Scandal

The world’s biggest packer, JBS, suspended meat production at 33 of its 36 meatpacking plants in Brazil as countries continue to ban Brazilian beef due to the corruption scandal and ongoing investigation. Reuters is reporting that a Brazil police investigation is alleging that multiple meat processors bribed inspectors to turn a blind eye to unsanitary or irregular activity. Those activities are causing challenges to the condition of Brazil’s meat exports. JBS is one of the dozens of firms that police are looking into as part of the ongoing meat investigation, but the company admits to no wrongdoing. Countries that have implemented full or partial bans on Brazilian meat include Egypt, China, Mexico, Canada, the European Union, Saudi Arabia, Japan, Switzerland, Hong Kong and Chile. The United States Food Safety and Inspection Service has issued no ban on beef products from Brazil. However, the service has put pathogen testing in place and increased the examination of all imports of raw beef and ready-to-eat products coming in from Brazil. Donald Trump’s nominee for Ag Secretary, Sonny Perdue, said at his confirmation hearing that he wouldn’t call for a ban either, fearing retaliation from other countries against American agricultural products.

Study: 82% of U.S. Households Buy Organic Regularly

A recent study by the Organic Trade Association finds that 82 percent of U.S. households in the lower 48 states buy organic products regularly. The Association says those findings build a strong case for continued U.S. Department of Agriculture funding under incoming secretary Sonny Perdue. Laura Batcha (Bat-cha), CEO and Executive Director of the Association, says, “The organic community is looking forward to working with new leadership coming into the USDA.” She says they’re looking forward to showing how important adequate funding is to keep a strong organic program moving forward and to help organic become a part of healthy diets across the country. The survey results showed the five states where organic is growing the fastest include North Dakota, Rhode Island, Wyoming, South Dakota, and Wisconsin. The Association says organic accounts for 5 percent of total food sales, amounting to $40 billion in annual spending. 

Cattlemen Call on USDA to Withdraw Damaging GIPSA Rules

WASHINGTON (March 24, 2017) – Today, the National Cattlemen’s Beef Association called on USDA to withdraw the Grain Inspection, Packers and Stockyards Act interim final and proposed rules, collectively labeled with the misleading title, Farmer Fair Practices Rules. Craig Uden, NCBA president, said the rules stand to threaten market incentives, the quality of American beef the industry is known for, and will ultimately cost $954 million to the cattle industry.

“These rules are just as troubling as they were when USDA initially proposed them in 2010, after which Congress immediately stepped in to defund the rules, recognizing them as a flawed concept that limits producers’ ability to market their cattle and adding layers of crippling bureaucracy,” said Uden.

Two proposed rules and one interim final rule came out on December 20, 2016, one month before the end of the Obama Administration. The interim final rule regarding the scope of the Packers and Stockyards Act and the proposed rule regarding undue preference and unjust treatment have a direct negative impact on the cattle industry.  

Alternative Marketing Arrangements reward cattle producers for producing the quality beef consumers demand. Under the interim final rule, USDA or a producer no longer needs to prove true economic harm but rather one only needs to say that he or she was treated "unfairly" to sue a packer or processor.
 
“This approach is counter to the decisions of seven federal courts of appeals and it is this change that ultimately makes the interim final rule a trial attorney’s dream and jeopardizes the Alternative Marketing Arrangements cattle producers utilize,” said Uden. “What incentive would a packer have to pay for superior cattle when they may be sued for rewarding quality? The industry will be forced back to treating all beef as commodity beef under a one-size-fits-all approach.”  

Much like the interim final rule, this proposed rule introduces more litigation into the cattle marketing system. The unfair practices and undue preferences provisions in the proposed rule are extremely vague and so ambiguous that broad interpretation is expected and compliance will be difficult. 

“Vague and ambiguous rules typically result in producers and each segment of the beef supply chain unable to determine which practices are prohibited or permissible,” said Uden. “The resulting uncertainty will simply lead producers to incur litigation costs to protect their respective marketing arrangements. Conversely, it provides other producers an opportunity to file a lawsuit to challenge such arrangements.”

Furthermore, GIPSA admits it is “unable to quantify the benefits” of these proposals. 

 “This is concerning since issuing rules with no discernable benefits should alone be grounds to withdraw the interim final rule and the proposed rule,” said Uden.

USDA’s monthly Cattle on Feed report

USDA’s monthly Cattle on Feed report on Friday showed U.S. cattle placed on feed in March at 100 percent from a year ago, in line with analyst expectations of placements at around 100.1 percent, according to a pre-report survey by Urner Barry.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 March 1, 2017. The inventory was slightly above March 1, 2016.Ahead of the report, analysts noted in the Daily Livestock Report, published by Steiner Consulting Group, that what stood out is the variance in analyst estimates of the number of cattle placed on feed during February. "On average analysts polled by Urner Barry expect placements in February to be 1.2 percent lower than a year ago, but some believe placements could be down as much as 6 percent from last year, while three of the analysts polled expect placements to be up by around 3 percent compared to last year," they wrote.Placements in feedlots during February totaled 1.69 million head, 1 percent below 2016. Net placements were 1.64 million head. During February, placements of cattle and calves weighing less than 600 pounds were 315,000 head, 600-699 pounds were 330,000 head, 700-799 pounds were 490,000 head, 800-899 pounds were 395,000, 900-999 pounds were 124,000, and 1,000 pounds and greater were 40,000 head.Marketings of fed cattle during February totaled 1.65 million head, 4 percent above 2016. Other disappearance totaled 56,000 head during February, 3 percent below 2016. 

SOUTH DAKOTA TB STRAIN PREVIOUSLY FOUND ONLY IN MEXICO, NEW TO U.S

Bovine Tuberculosis (TB) was identified in three beef cows during routine slaughter inspection by U.S. Department of Agriculture Food Safety Inspection Service inspectors at two Nebraska slaughter plants in February, 2017. The cows had been in feedlots in Nebraska and South Dakota since November, 2016.Market records were used to identify the herd of origin, which was tested by state and federal animal health officials, revealing additional infected animals. The herd remains quarantined and 41 infected animals have been removed from the herd. Final disposition of remaining animals in the herd is being determined.Thirteen adjacent herds, comprised of over 8,000 head, were quarantined for testing. One herd has been released from quarantine with negative results of testing in all cattle two years of age and older. Testing is in progress in the remaining adjacent herds and the majority of that work should be completed over the next three weeks.The National Veterinary Services Laboratory in Ames, Iowa, has conducted whole genome analysis of the bacteria isolated from some of the affected animals from the Harding County herd. Experts have concluded that this strain of bacteria is nearly identical to a strain that is known to exist in dairy cattle in the Central region of Mexico and that it has not previously been identified in the U.S. This strain is not related to the recent strain found in Canadian cattle, previous cases identified in South Dakota cattle or in Michigan wildlife and livestock. 

Friday, March 24, 2017

The National Wheat Yield Contest is open and accepting entries for its second year

(DTN) -- Wondering how your wheat management stacks up against other growers? Now is your chance to find out: The National Wheat Yield Contest is open and accepting entries for its second year. "We're going into the year with a lot of excitement among wheat leaders," said Steve Joehl, executive director of the wheat contest for the National Wheat Foundation, which hosts the contest. "A lot of growers are starting to understand how [the contest] can help transfer technology among growers so they can improve their productivity." Because it was new, last year's contest flew slightly under the radar but still ended up with 169 entries, Joehl said. He's optimistic that this year's participation will double and possibly even triple that number. Registration is already far ahead of last year's pace, with 50 growers signed up and months to go before the May 1 deadline for winter wheat and the August 1 deadline for spring wheat. Entries will likely pick up as growers get a sense of the crop's potential as it comes out of dormancy. David Eickholt, who placed in the contest last year with a dryland winter wheat yield of 147.74 bushels per acre (bpa), is already eying his central Michigan fields for the 2017 contest. "We're planning on entering, but it just depends on how the spring plays out," he told DTN. "We started scouting last week and some of it looks very good." Last year delivered ideal wheat-growing weather for much of the country, and the overall national yield winner, Phillip Gross of Warden, Washington, hit 192.85 bpa with an irrigated WestBred winter wheat variety. The 2016 contest helped cast a spotlight on an innovative group of wheat farmers who manage wheat as intensively as they do corn and soybeans. "I can't tell you how much I learn from these growers," Joehl said. "They're scouting their wheat weekly and -- in critical times of the season -- two or three times a week." Among the inputs and management tactics that were highlighted by the winners of last year's contest were fungicide applications, nitrogen use and seeding rates carefully calibrated to each growers' region. This year, Eickholt has his eye on a new variety from the Michigan Crop Improvement Association, and says the spring weather will determine how he manages fungicides and micronutrients in any contest fields. "We do more scouting on wheat and we use more fungicides, and that's been very successful," he said of his operation. Growers must be members of either a state wheat association or the National Association of Wheat Growers to participate in the contest. Youth is no barrier; the minimum age is 14, and last year's national winner for irrigated winter wheat was Jagger Borth, a high school senior from Meade, Kansas. The contest will be divided into the same four categories as last year: dryland winter wheat, irrigated winter wheat, dryland spring wheat and irrigated spring wheat. The winner of each category will be determined by how many percentage points the crop yields above the county average, and an overall highest yield winner will also be recognized. The contest also recognizes the growers recording the highest yield above the county average within each state. The entered field must have at least five continuous acres of a certified or branded wheat variety. Growers who are planning to enter should keep careful records of every planting metric and input throughout the growing season. The entry fee is $100. The contest has very specific rules on how to harvest and check yield for the entered field, and a recheck is required if your field yields above 150 bpa. You can find those specifics, along with all the rest of the contest's rules and regulations, here: http://bit.ly/… The contest's original four sponsors of BASF, Monsanto, John Deere and Croplan are joined by Syngenta, Indigo Agriculture and The McGregor Company this year.