Court Rules Against EPA Interpretation Used to Temper 2014-2016 RFS Levels

EPA's stance that they reduced Renewable Fuel Standard (RFS) mandated volumes under the program in a rule promulgated in 2015 on 2014-2016 biofuel requirements (and 2017 biodiesel) due to insufficient demand being the same as insufficient supply was rejected by the U.S. Court of Appeals for the DC Circuit.Americans for Clean Energy and aligned petitioners claimed EPA erred in how it interpreted "inadequate domestic supply" waiver provisions in the RFS statute, according to the Court. "We hold that the 'inadequate domestic supply' provision authorizes EPA to consider supply-side factors affecting the volume of renewable fuel that is available to refiners, blenders, and importers to meet the statutory volume requirements," the Court said. "It does not allow EPA to consider the volume of renewable fuel that is available to ultimate consumers or the demand-side constraints that affect the consumption of renewable fuel by consumers."Based on that view, the Court said they granted Americans for Clean Energy petition and "vacate EPA’s decision to reduce the total renewable fuel volume requirements for 2016 through use of its 'inadequate domestic supply' waiver authority, and remand the rule to EPA for further consideration in light of our decision."The Court also said they reject "EPA’s attempt to bootstrap the definition of 'renewable fuel' into a boundless general waiver authority." While EPA contended the phrase in the statute referring to renewable fuel that "is used" does "not mean that biofuel transforms into renewable fuel only when it is actually pumped into gas tanks." The Court pointed to the following argued by Americans for Clean Energy contention that "term ‘used’ merely defines the qualifying uses to which the biofuel may be put."However, the Court rejected other petitioners arguments as the court said EPA does not have to address which companies bear the obligation for complying with the program in annual rules and it upheld EPA's separate waiver to reduce cellulosic requirements. Plus, the court said EPA does not need to consider the amount of leftover renewable identification numbers (RINs) from prior years when it sets future volumes. Further, the court also determined EPA has the right to set biofuel requirements even if they miss the statutory deadline to do so.

US Beef Industry Expresses Concerns on Amendments to KORUS

The call by the Trump administration to address issues under the U.S.-Korea free trade agreement (KORUS) is raising concern from the U.S. beef industry that they could lose benefits they have gained from the trade deal."Under KORUS, the U.S. beef industry has seen an 82 percent increase in annual sales to South Korea, from $582 million in 2012 to $1.06 billion in 2016," officials from the National Cattlemen's Beef Association, North American Meat Institute and U.S. Meat Export Federation said in a letter to U.S. Trade Representative Robert Lighthizer and USDA Secretary Sonny Perdue."Simply put, KORUS created the ideal environment for the U.S. beef industry to thrive in South Korea," the lawmakers said. "We would not support any changes in the terms of the KORUS that would jeopardize either our market share or the significant investment that has been made in rebuilding Korean consumer confidence in the safety, quality and consistency of U.S. beef."

Washington Insider: Worries About Mexican Trade Retaliation

There is more than a little anxiety in ag trade circles as discussions regarding NAFTA get underway, Bloomberg says. As a result, USDA Secretary Sonny Perdue has weighed in with his view that trade tensions are unlikely to drive Mexico to abandon the U.S. as a supplier of corn and soybeans.“I did not get any indication that they're seriously considering that,” Perdue told the press on Friday’s conference call when asked if Mexico planned to buy more corn and soybeans from Brazil and Argentina. He spoke after meeting with Mexican Agriculture Secretary Jose Calzada Rovirosa in Merida, Mexico, ahead of the negotiations that are set to begin Aug. 16.Mexico earlier launched talks with other major corn-exporting countries after threats by President Trump that he would withdraw from NAFTA. “While they may feel they need to say they're looking elsewhere, we have great history and relationships and supply chains they hope won't be disrupted,” Perdue said.The U.S. has a “corner store” location and “frankly we will continue to take advantage of that,” Perdue said. It also has a “productive and logistical advantage” that rivals such as Brazil and Argentina cannot match, he added.At a July 26 House Agriculture Committee hearing, Floyd Gaibler, director of trade policy & biotechnology at the U.S. Grains Council, said the council had “strong but unconfirmed evidence” that Mexico is slated to purchase seven to eight cargoes of corn from South America beginning in August and September. He said U.S. corn exports to Mexico have declined 7 percent by value since the start of the year.Perdue was also asked how the administration planned to balance the concerns of agriculture with manufacturers. While the agriculture sectors both in the U.S. and in Mexico have “benefited tremendously” under NAFTA, U.S. manufacturing has not, he noted. President Donald Trump is “very rightly” concerned about that, he said.“How we reconcile those two concerns will remain to be seen,” Perdue said, adding that the hope is to “do it without diminishing the beneficial impact that NAFTA has had on the agricultural sector.” More education is needed on how many manufacturing jobs are created by agricultural production, he said.The administration also understands that not all agricultural sectors have benefited equally from NAFTA, Perdue said when asked about the dumping of Mexican fruits and vegetables. There is some overlap in growing seasons between Mexico and South Florida, he said.Florida fruit and vegetable producers have complained that Mexican producers have flooded the market with unfairly low priced tomatoes, bell peppers, and cucumbers, among other commodities. The administration would welcome ideas from this sector on what could be done to ameliorate the situation, according to Perdue.The administration is also working on a legal guest worker program for Mexican citizens, Perdue said, adding that he did not expect this to be addressed in the NAFTA talks.Perdue is right to be concerned that more than a few of the beneficial trade arrangement now in place under NAFTA could be rattled by insensitive diplomacy—as has been the case in the recent past. In fact, some of the agricultural provisions in the current agreement were negotiated only with difficulty and could be upended significantly if the upcoming negotiations are not conducted with these fully in mind.Secretary Perdue is a long-time expert in international trade, and he is right to emphasize that the comparative advantage of US products in Mexico is very significant. But, Floyd Gaibler also is a long time trade expert and the Council has an extensive and able staff in Mexico – and his danger signals need to be taken very seriously. In general, the upcoming NAFTA talks are potentially very important to U.S. producers and should be watched closely as they proceed, Washington Insider believes. 

Perdue: Japan Tariff Increase Could Increase Trade Deficit

Agriculture Secretary Sonny Perdue Friday voiced concerns that Japan’s tariff increase on U.S. frozen beef could increase the U.S. overall trade deficit with Japan. He says the potential deficit increase would harm the U.S. bilateral trade relationship with Japan on agricultural products. Japan announced that the increase in frozen beef imports from the U.S. in the first quarter of the Japanese fiscal year triggered a safeguard, resulting in an automatic increase to Japan's tariff. The tariffs will begin August first, and last through March 31st, 2018. Perdue says he has asked representatives of Japan's government to "to make every effort" to address his concerns and the harm that could result to consumers from the U.S. and Japan.

Japan Beef Tariff Increase Highlights Need for Trade Agreement

The National Cattlemen’s Beef Association says the increased tariff on beef imports to Japan underscores the “urgent need” for a bilateral trade agreement between Japan and the United States. Japan announced it would increase the tariff on frozen beef imports from 38.5 percent to 50 percent until April 2018. NCBA President Craig Uden says the tariffs “unfairly distort the market and punish both producers and consumers. Japan was the top export market for U.S. beef, valued at $1.5 billion in 2016. According to data compiled by the U.S. Meat Export Federation, first quarter U.S. beef sales to Japan increased 42 percent over 2016. In addition to the United States, the 50 percent safeguard tariff also applies to imports from Canada, New Zealand, and other countries that do not have a free trade agreement with Japan.

Trucks Carry Majority of NAFTA Freight

Trucks carry more freight between the U.S., Mexico and Canada under the North American Free Trade Agreement than railcars. The Department of Transportation's Bureau of Transportation Statistics last week reported that trucks carried 63.4 percent of NAFTA freight between May 2016 and May 2017. U.S.-NAFTA freight totaled $98.2 billion during that time, with trucks accounting for $32.2 billion of the $53.5 billion of imports and $30.1 billion of the $44.7 billion of exports. Vehicles and vehicle parts were noted as the top products being moved between the U.S., Canada and Mexico. Those statistics come just weeks before the Trump administration is set to renegotiate NAFTA, which includes the top trading partners for U.S. agriculture.

Farmers Union Relieved by Failed ACA Repeal Vote

The National Farmers Union released a statement Friday announcing “relief” by the failed Senate vote on a so-called skinny repeal of parts of the Affordable Care Act. NFU says the bill would have risked access to health care for 16 million people and marketplace stability. Farmers Union President Roger Johnson says rural residents, including farmers and ranchers, need and desire a solution to rising premiums and an unstable marketplace. However, of the skinny repeal, he says the bill would have made matters worse for rural residents. Johnson says the organization now looks forward to working towards a bipartisan solution that improves access to affordable, high-quality health care for family farmers, ranchers and rural Americans.

Grains Council Meeting in Vancouver

The U.S. Grains Council summer meeting is getting underway this week in Vancouver, Washington. Starting today (Monday) and lasting through August 2nd, the meeting includes the USGC 57th Annual Board of Delegates Meeting. More than 300 Grains Council members, delegates and guest are taking part in the meeting. The meeting schedule will offer deep dives into emerging ethanol opportunities, China’s growing influence in global trade and the U.S. approach to trade policy negotiations, including the coming modernization of the North American Free Trade Agreement. Advisory teams for USGC are also meeting to track progress toward the implementation of the 2017 Unified Export Strategy. More information is available at Grains dot org (www.grains.org).

Wind Power Advancing in U.S.

A new report from the American Wind Energy Association finds 357 megawatts in new wind energy projects were brought online during the second quarter of the year. Nationally, the U.S. now has 84,405 megawatts of installed wind power capacity, with more than 52,000 commercial wind turbines currently operating in 41 states plus Guam and Puerto. Another 25,819 megawatts are under construction or in advanced development, according to the U.S. Wind Industry Second Quarter 2017 Market Report. Nearly 80 percent of current wind turbine construction and advanced development activity is found in the Midwest, Texas and the Mountain West, as America's rich wind resources draw even more business to heartland states. 

Much of Montana and parts of the Dakotas, Nebraska, and Kansas had no rain this past week

Much of Montana and parts of the Dakotas, Nebraska, and Kansas had no rain this week; some areas have been drier than normal for the last 2 to 3 months; and some drought indicators reflect dryness for the last 12 months. D3-D4 were expanded in northeast Montana, and D3 expanded in northwest South Dakota and was added in southeast South Dakota, where the Standardized Precipitation Index (SPI) was consistently at those dry levels for the last 1 to 9 months. D1-D4 expanded in northwest North Dakota where the SPI was consistently at those dry levels for the last 1-6 months. D0-D2 expanded across much of Nebraska, with collateral expansion of D1-D2 in adjacent South Dakota, D1 in adjacent Iowa, and D0-D1 in southeast Wyoming, and D0 expanded in parts of eastern Kansas and northeast Colorado, due to 30-90 day precipitation deficits and high evapotranspiration caused by excessive heat. Governors provided much-needed response to the dire drought impacts.Montana Gov. Steve Bullock issued an executive order declaring a drought disaster in 28 counties and five Indian reservations in the eastern part of the state. Nebraska Gov. Pete Ricketts issued an emergency proclamation, allowing the state Emergency Management Agency to address unmet drought needs, particularly those related to wildfires. According to July 23rd USDA reports, 92% of the topsoil moisture and 88% of the subsoil moisture were rated short or very short in Montana, 82%/81% of the topsoil/subsoil moisture was short or very short in South Dakota, 71%/66% in Nebraska, 67%/62% in North Dakota, 61%/58% in Wyoming, and 45%/41% in Colorado. More than half of the pasture and rangeland were rated in poor to very poor condition in North Dakota (75%), South Dakota (73%), and Montana (56%). In South Dakota, 37% of the corn crop, 34% of soybeans, 57% of sorghum, and 76% of the spring wheat were in poor to very poor condition. In North Dakota, 23% of the corn crop and 39% of the spring wheat were in poor to very poor condition. In Montana, 55% of the spring wheat was in poor to very poor condition. According to media reports, as of July 25th, the Lodgepole Complex wildfire in Montana was the largest wildfire in the CONUS. 

MDA launches Agriculture Fire & Drought Assistance Hotline

Helena, Mont. – As drought conditions worsen and fires burn throughout the state, the Montana Department of Agriculture has launched the Agriculture Fire and Drought Assistance Hotline. The hotline will serve as a tool to help connect those affected to available resources, programs and donations, as well as to provide information on how others can help. Questions related to hay/feed donations, livestock, fencing, and transportation can be directed to the hotline. The hotline number is 1-844-515-1571 and will be staffed 8 am to 5 pm Monday through Friday.
“Montana’s agriculture industry has been disproportionately impacted by disasters this year, both drought and fire,” said MDA Director Ben Thomas. “There’s currently a major need for resources and there’s been an overwhelming swell of support from folks across the state and throughout the country. We saw a need to get information out about resources available and ways to help connect people to those resources.”
Montana Agriculture Fire & Drought Assistance Hotline
1-844-515-1571
Monday-Friday, 8 am–5 pmThe hotline is not an emergency number, if you are in an emergency please call 911. 

NCBA Responds to Japan Raising Tariff on U.S. Beef Imports: "Underscores Urgent Need for Bilateral Trade Agreement"

WASHINGTON (July 28, 2017) - National Cattlemen’s Beef Association (NCBA) President Craig Uden issued the following statement in response to the announcement that the Government of Japan is triggering the safeguard tariff increase on frozen beef imports:“We're very disappointed to learn that the tariff on frozen beef imports to Japan will increase from 38.5 percent to 50 percent until April 2018. Japan is the top export market for U.S. beef in both volume and value, and anything that restricts our sales to Japan will have a negative impact on America’s ranching families and our Japanese consumers. NCBA opposes artificial barriers like these because they unfairly distort the market and punish both producers and consumers. Nobody wins in this situation. Our producers lose access, and beef becomes a lot more expensive for Japanese consumers. We hope the Trump Administration and Congress realize that this unfortunate development underscores the urgent need for a bilateral trade agreement with Japan absent the Trans-Pacific Partnership.”Background: Japan was the top export market for U.S. beef, valued at $1.5 billion in 2016. According to data compiled by the U.S. Meat Export Federation, first quarter U.S. beef sales to Japan increased 42 percent over 2016. In addition to the United States, the 50 percent safeguard tariff also applies to imports from Canada, New Zealand, and other countries that do not have a free trade agreement with Japan.

Drought Still Growing Across the U.S.

The latest Drought Monitor shows soils continuing to dry out and crops suffering as drought and abnormal dryness expands and intensifies across the Plains, Midwest, northern Rockies, and Virginia. Montana saw the most severe level of drought, called exceptional drought, grow by 10 points in a week. 12 percent of the state is in exceptional drought and 24 percent is under extreme conditions. In neighboring North Dakota, eight percent of the state is in exceptional drought. Another 30 percent of the state is in extreme drought. In the Corn Belt, drought conditions have shown up in Iowa. The state’s moderate drought grew to 34 percent. All states east of the Mississippi River are drought free for now, but patches of abnormal dryness mean it could change as early as next week. USDA meteorologist Brad Rippey says drought conditions are intensifying across the central United States. The Corn Belt has seen double-digit percentage increases. Drought coverage is growing around the nation, with the current drought monitor showing over 32 percent of the country in some form of drought.  

Exports Slip on NAFTA Uncertainty

A panel of expert witnesses told the House Agriculture Committee this week that speed is a critical factor in renegotiating the North American Free Trade Agreement. The uncertainty over how negotiations may play out is causing some importers to look elsewhere for suppliers. Many of the importers that are looking elsewhere for chicken and grain products are located in Mexico. Those buyers are looking at South America to supply their needs and it shows in America’s export numbers. Corn, sorghum, and barley exports are down seven percent and will only get worse if negotiations drag on for a long period of time. Foreign importers are worried that President Donald Trump will follow through on his threat to pull the U.S. out of NAFTA altogether. “That threat prompted the Mexican government to look to Brazil and Argentina for alternative sources of corn and other grain products,” says Floyd Gaibler (Gayb’-lur), a Director with the U.S. Grains Council. Government and trade sources have told Agri-Pulse that they hope to wrap up negotiations by the end of this year, but that’s not a firm deadline. Ag groups fear exports will fall further if it’s not done by the end of 2017.

EPA Formally Proposes WOTUS Withdrawal

The Environmental Protection Agency and the U.S. Army Corps of Engineers will formally propose to withdraw the “Waters of the U.S. Rule,” a controversial Obama-era rule on clean water. This move will mark the end of years of efforts by farm groups to get rid of something they called a burdensome federal overreach. Politico’s Morning Ag Report says the proposed rule to withdraw WOTUS was first revealed back in June, but it hadn’t been noticed in the Federal Register. That formal step kicks off a 30-day public comment period. Critics of the withdrawal have called for more time to weigh in on the matter. The proposed rule to withdraw WOTUS won’t have much of a noticeable effect out in the countryside. WOTUS was only in effect for a short time before the Sixth U.S. Circuit Court of Appeals put it on hold. The repeal rule is seen as a possible safety net in the event that the U.S. Supreme Court determines that the Court of Appeals didn’t have jurisdiction over the case and lifts the hold. While the repeal rule keeps the status quo, the Trump Administration will work on its own plan to decide which waters are subject to federal regulation and will reveal the plan in December.

United States is calling a special joint committee meeting under the U.S.-Korea Free Trade Agreement

Earlier this month, President Donald Trump directed U.S. Trade Representative Robert Lighthizer to formally notify South Korea that the United States is calling a special joint committee meeting under the U.S.-Korea Free Trade Agreement (KORUS) to re-negotiate parts of the pact.He did. And the meat industry is nervous about it.“President Trump continues to keep his promises to lower our trade deficit and negotiate better trade deals for American workers, farmers, ranchers and businesses,” Lighthizer said in a statement. “Since KORUS went into effect, our trade deficit in goods with Korea has doubled from $13.2 billion to $27.6 billion, while U.S. goods exports have actually gone down.” The meeting is to take place in Washington, D.C., on a date in August to be agreed upon.Beef industry concerned
Three U.S. meat industry groups this week sent letters to Lighthizer and Agriculture Secretary Sonny Perdue urging the Trump administration not to jeopardize access to the industry’s second-largest export market.The CEOs of the National Cattlemen’s Beef Association, the North American Meat Institute and the U.S. Meat Export Federation sent the letters to highlight the success the U.S. beef industry has experienced with its exports to South Korea since KORUS began.“Simply put, KORUS created the ideal environment for the U.S. beef industry to thrive in South Korea," the letter said. "We would not support any changes in the terms of the KORUS that would jeopardize either our market share or the significant investment that has been made in rebuilding Korean consumer confidence in the safety, quality and consistency of U.S. beef.”The groups noted that under KORUS, the U.S. beef industry has seen an 82 percent increase in annual sales to South Korea, from $582 million in 2012 to $1.06 billion in 2016, making South Korea the second-largest export market for U.S. beef.Many cuts like short ribs and chuck rolls receive a significant premium in South Korea over prices in the U.S. market. KORUS also established strong science-based trade measures and a schedule for the elimination of South Korea’s 40 percent tariff on U.S. beef -- terms that have allowed the U.S. beef industry to be very competitive in South Korea, the letter pointed out.

The Environmental Protection Agency, U.S. Army and Army Corps of Engineers have proposed a rule to rescind the Clean Water Rule

The Environmental Protection Agency, U.S. Army and Army Corps of Engineers have proposed a rule to rescind the Clean Water Rule and re-codify the regulatory text that existed prior to 2015 defining "waters of the United States," the agencies said in a news release.The agencies’ intent to propose such a rule was announced in late June, but the actual publication was delayed. Now that it’s published, the 30-day comment period begins.Many fans of the WOTUS rule, including environmental groups, have complained that 30 days is not long enough to substantively weigh in on the implications of repealing the 2015 rule. Today’s proposal indicated the agencies “will engage in a substantive re-evaluation of the definition of ‘waters of the United States,’” the release said.“This is the first step in the two-step process to redefine 'waters of the U.S.,' and we are committed to moving through this re-evaluation to quickly provide regulatory certainty, in a way that is thoughtful, transparent and collaborative with other agencies and the public," EPA Administrator Scott Pruitt is quoted as saying in the release.The newly proposed rule follows the Feb. 28 presidential executive order on "Restoring the Rule of Law, Federalism, and Economic Growth by Reviewing the 'Waters of the United States' Rule." The February order states that it is in the national interest to ensure that the nation's navigable waters are kept free from pollution, while at the same time promoting economic growth, minimizing regulatory uncertainty, and showing due regard for the roles of Congress and the States under the Constitution.The actual effect on operations of any changes to the regulations would be negligible; a legal stay on the 2015 rule meant that it barely went into effect in the first place.

Grown in Montana Store kicks off at Montana State Fair

Nearly 20 companies participating this yearGreat Falls, Mont.—The Montana Department of Agriculture will host the Grown in Montana Store at the Montana State Fair in Great Falls, July 28ththrough August 5th. The Grown in Montana Store will showcase value-added agriculture products that are grown in Montana and processed by Montana businesses. Nearly 20 Montana companies from all corners of the state will have products available for purchase.“Montana has seen significant growth in the value-added sector of our ag economy over the past few years and we are excited to again showcase some of these companies at the Grown in Montana store at the state fair.” said MDA Director Ben Thomas. To learn about which companies will be showcasing their products at the store, visit the Department’s website at http://agr.mt.gov/Grown-in-Montana-Store. You can find the Grown in Montana Store in the Trades and Industries Building near the exit to the grandstand and midway. The store will be open daily, from noon until the fair closes, and will accept both cash and credit or debit cards. To learn more about the Made in Montana program, visit www.madeinmontanausa.com.

Farmers and ranchers urged to comment on WOTUS

The Montana Farm Bureau is urging farmers and ranchers to submit comments regarding how the Water of the U.S. (WOTUS) Rule would negatively affect them. On June 27, 2017, EPA proposed to do what Farm Bureau has wanted for years—DITCH the RULE! Farmers and ranchers support clean water and work hard to protect our natural resources. But the WOTUS rule had more to do with land than water. “WOTUS would have created a huge regulatory burden for farmers, ranchers and others who depend on their ability to work the land,” noted Montana Farm Bureau Executive Vice President John Youngberg. “It would increase the costs for farmers and ranchers, and produced confusion and uncertainty. The rule has never been implemented because it was temporarily halted by both a federal district court and a federal court of appeals. EPA’s current proposal would eliminate the 2015 WOTUS rule permanently, while the agency goes back to the drawing board to develop a WOTUS definition that protects water quality without asserting federal regulatory power over puddles in farm fields.   “However, this isn’t the time to think the rule is already ditched,” noted Youngberg. “Environmental activist groups desperately want to preserve the 2015 land grab. They are gearing-up their fundraising and mass-comment campaign to stop EPA from Ditching the Rule. They are saying the withdrawal of the rule will harm water quality. That’s simply false. The only thing being eliminated is the largest federal land grab of our time.”

Korean Wheat Crop Survey Trade Team Visits United States to Inform Purchasing Decisions

By Amanda J. Spoo, USW Assistant Director of Communications

When making major purchasing decisions, there are a variety of factors to consider and balance. Global wheat buyers typically consider price, reliability, customer service and wheat quality, and USW makes it possible for overseas wheat buyers to review these factors with the people who develop, produce and sell U.S. wheat.

USW welcomed a trade team of four Korean executives from major flour milling companies to the United States July 16 to 23, 2017. USW collaborated with the Montana Wheat & Barley Committee (MWBC), Washington Grain Commission (WGC) and Oregon Wheat Commission (OWC) to organize and host this trade team. Funding also came from the USDA Foreign Agricultural Service (FAS).

“Three of the team members recently took on new responsibilities for wheat purchasing, so this experience was essential to help them learn about the U.S. quality assurance system and to better understand the wheat supply chain,” said Chang Yoon Kang, USW Country Director for Korea. “They had a firsthand look at the 2017 crop, which will help them prepare their upcoming purchasing plans.”

USDA reports that in marketing year 2016/17, South Korea imported 1.13 million metric tons (MMT) of U.S. wheat, including U.S. soft white (SW), hard red winter (HRW) and hard red spring (HRS) wheat.

Kang, who led the trade team, explained that the Korean wheat foods market is developing in a way that is similar to the U.S. market. End-product flour specifications in Korea are becoming more complicated because consumers demand quality and an increasingly wide range of products.

The team began its trip in Montana, where it immediately took a broad look at the complete supply chain with visits to: the Northern Ag Research Center; CHS Big Sky; EGT, LLC; and Columbia Grain. The team members also visited MWBC Director Randy Hinebauch’s farm and observed the HRS crop harvest.

Next, the team traveled to Washington for a focus on wheat breeding and research. During a visit to the USDA Agricultural Research Service (ARS) Western Wheat Quality Lab in Pullman, the team participated in a blind taste test for noodles produced with flour from various varieties and wheat classes, and provided their feedback.

“The team had an extensive discussion about how quality is determined to correlate with end-users,” said Glen Squires, WGC CEO. “The lab team explained how over time, the aggregate quality of Pacific Northwest wheat has been increasing as new varieties are released.”

The team met with three breeders: Arron Carter, Washington State University (WSU) winter wheat breeder; Mike Pumphrey, WSU spring wheat breeder; and Kim Campbell, ARS club wheat breeder. They explained the breeding process and shared what they have learned from previous experiences meeting with customers and discussing end use needs, and how they have applied that knowledge to their work.

The team also stopped by some local SW and club wheat fields.

“Korea was one of the first countries I visited as a USW board member,” said Gary Bailey, USW director from the WGC and a wheat farmer from St. John, Wash. “I strongly feel it is important to listen to our buyers to better understand their needs and concerns, along with what they like. I appreciate being able to meet with these customers to discuss this year’s crop with them.”

On the last leg of their trip, the team traveled to Oregon, and in Portland met with the Wheat Marketing Center (WMC), Federal Grain Inspection Service (FGIS) and Pacific Grain Exporters Association. They also visited the Columbia Grain Export Terminal and toured some farms in the Willamette Valley.

"This trip let us see firsthand, the quality of U.S. wheat and to meet the people who grow it,” said team member Dong Bae Nam, Executive Director, Sajodongaone Company. “I came with questions about U.S. wheat production, and meeting with FGIS and learning about the wheat breeding system showed me the quality and safety of U.S. wheat. We appreciate the hospitality and opportunity to build relationships with U.S. farmers."

Annual Spring Wheat Tour Sees Drought Taking Toll on Yield Potential

By Erica Oakley, USW Director of Programs

This week, the Wheat Quality Council hosted its annual hard red spring (HRS) and durum crop tour. Participants spent three days in North Dakota surveying this year's crop and estimating yield. The tour, which surveyed a total of 496 fields, estimated weighted average HRS yield at 38.1 bushels per acre (bu/a), significantly lower than last year’s HRS average of 45.7 bu/a because of ongoing drought conditions in western areas. The durum weighted average yield was 39.7 bu/a, down from 45.4 bu/a in 2016. Results from six HRW fields showed a weighted average of 46.6 bu/a.

Participants on the tour always represent a wide range of the wheat industry, including millers, traders, media, farmers, researchers and government officials. There were 76 participants on this tour, who traveled along eight distinct routes covering most of the state’s wheat production. I joined my USW colleague Assistant Director of Policy Elizabeth Westendorf on the tour.

It was insightful to see the conditions on the ground after reading reports about the drought. It was also interesting to see the difference in field conditions along each of the routes over all three days.

On the first day, participants drove between Fargo and Bismarck, with two routes going farther into the western part of the state, and others covering western Minnesota and northern South Dakota. Conditions on the eastern side looked good, though there was evidence of drought stress. Reports from the west included evidence of much more severe conditions. The Day 1 weighted average yield was 38.8 bu/a, down from 42.9 bu/a in 2016. For HRS specifically, the yield was 37.9 bu/a, down from 43.1 bu/a in 2016. The scouts surveyed 207 fields on Day 1, of which 194 were HRS, 10 durum and three HRW.

On Day 2, the tour surveyed 225 fields, 188 of which were HRS; along with 34 durum and 3 HRW. The group moved from Bismarck to Devils Lake. The more western routes reported drought stress, though not as severe as the scouts saw in southwestern North Dakota on Day 1. Overall average for Day 2 was 35.7 bu/a, down from 46.5 in 2016. For HRS, the yield was 35.8 bu/a, down from 46.9.

The third day of the tour included a half day of crop surveying. The participants then all returned to North Dakota State University’s Northern Crops Institute in Fargo to compile the overall crop report. On Day 3, participants surveyed at total of 61 HRS fields and three durum fields. The Day 3 weighted average yield for HRS was 46.2 bu/a, down from 51.9 bu/a in 2016. The weighted average durum yield from just three fields was 46.2 bu/a, down from 52.1 bu/a in 2016.

The results reflect a snapshot of yield potential observed by the participants in the fields they scouted.  

"There is still a question of abandonment because of the dryness,” said Dave Green, executive vice president of the Wheat Quality Council. “We do not yet know how much of the crop has been hayed — how much of it has been plowed under."

View highlights and photos from the tour by searching #wheattour17 on Facebook and Twitter. For more information and for results from previous tours, visit the Wheat Quality Council’s website at www.wheatqualitycouncil.org. 

Diminishing Low Protein Premiums Add Value to Soft White Export Supplies

By Stephanie Bryant-Erdmann, USW Market Analyst

Four consecutive years of drought, which shrunk soft white (SW) production and increased average protein levels, had the market rationing demand through low protein premiums. Now, after two years of more normal weather patterns, low protein premiums are quickly disappearing providing an excellent buying opportunity for U.S. wheat customers.

In marketing year 2016/17 (June to May), the protein premium for 10.5 percent maximum protein SW shrunk to an average 60 cents per metric ton (MT), compared to the 5-year average of $10 per MT (U.S. protein is calculated on a 12 percent moisture basis). The protein premium for 9.5 maximum protein SW fell to $14 per MT. So far in 2017/18, the 10.5 maximum protein premium has increased slightly to 71 cents per MT due to the uncertainty of harvest; however, the 9.5 maximum protein premium has continued to shrink to an average $6 per MT due to expectations of “normal” protein distributions and an ample supply of SW.

According to USW Crop Quality data, the 5-year average protein for SW is 10.4 percent, which includes two higher protein years (2014/15 and 2015/16). Prior to 2014/15, the 5-year average was 9.9 percent. The expectation of “normal” protein distributions is a direct result of more normal growing conditions. Idaho, Oregon and Washington received timely and ample moisture throughout the growing season, resulting in good stands and grain-fill.

In USDA’s latest winter wheat condition report for 2017/18, winter wheat conditions across the three states averaged 78 percent good to excellent. On July 24, spring wheat conditions in Idaho and Washington were rated 63 percent and 40 percent good to excellent, respectively. Roughly 87 percent of SW is winter wheat and 13 percent is spring wheat.

In addition to good crop conditions, USDA also expects average yield to reach 65.9 bushels per acre (4.43 MT per hectare) or 3 percent above the 5-year average. If realized, that would still be 7 percent below 2016/17 yields. USDA expects large 2017/18 SW beginning stocks to offset an anticipated 11 percent decline in production. Total 2017/18 SW supply is projected to remain stable year over year at 9.77 million metric tons (MMT).

It is important to note that the decline in low protein premiums are currently being driven not by actual data, but by the expectation of normal protein distributions and decent yields at this point because the 2017 SW harvest is only just underway. As always, nothing is guaranteed until the wheat is safely in the bins, but customers can take advantage of the decline in low protein premiums to secure high quality, low-protein SW at reasonable prices.

Customers are encouraged to keep abreast of harvest conditions and to contact their local USW representative with any questions about U.S. wheat supplies and production. 

National Wheat Yield Contest Spring Wheat Deadline is August 1st!

The National Wheat Yield Contest enrollment is finishing out its last couple of weeks. Entering its second year, the contest is sponsored by the National Wheat Foundation. The Contest is entirely web based and growers can enter at http://yieldcontest.wheatfoundation.org. Deadline to enter for spring wheat is August 1, 2017! 

One of two men convicted in trial against federal authorities in Nevada was sentenced on Wednesday to 68 years in prison

One of two men convicted in the first of several trials stemming from a 2014 standoff led by renegade rancher Cliven Bundy against federal authorities in Nevada was sentenced on Wednesday to 68 years in prison for his role in the armed confrontation.Gregory Burleson, 53, of Phoenix, was found guilty in April of eight felony counts, including charges of threatening and assaulting federal officers, obstruction of justice, interstate travel in aid of extortion and firearms offenses related to a crime of violence.The uprising at Bundy's ranch near Bunkerville, Nevada, 75 miles (120 km) northeast of Las Vegas, grew out of a dispute in which federal agents seized Bundy's cattle over his refusal to pay fees required for grazing his livestock on government land.The standoff became a flashpoint in long-simmering tensions over federal ownership of vast tracts of public lands in the West, and a rallying point for right-wing militants who challenge the U.S. government's authority in the region.Burleson was the first of 17 defendants from the Bundy revolt to be tried, convicted and sent to prison. A co-defendant found guilty by the same jury faces sentencing in September.Four others granted a mistrial in April are being retried in Nevada. Two more groups of defendants, including Bundy and his sons, are scheduled to stand trial later this year and next.Two others charged in the case pleaded guilty separately. One received a seven-year prison term, the other will be sentenced in January, said Trisha Young, a spokeswoman for the U.S. Attorney's Office in Las Vegas.Two of Bundy's sons and four followers were acquitted of conspiracy charges in a separate trial in October stemming from their armed takeover of a federal wildlife center in Oregon in early 2016.Wednesday's sentencing came days before various militia groups plan a weekend rally near Colorado Springs, Colorado.Burleson and the five others with whom he was tried were described by prosecutors as Bundy's "gunmen and followers," who showed up at his ranch from neighboring Western states armed with assault rifles and other weapons.Prosecutors said all six were among hundreds who descended on Bunkerville in April 2014 for a showdown with federal officers providing security during a court-ordered roundup of Bundy's cattle.Outgunned by Bundy's supporters, authorities released the cattle and left the area. Although no shots were fired, prosecutors said Burleson and his five co-defendants aimed rifles at law enforcement.

Analysts Say Amazon's Acquisition of Whole Foods More Evidence Of Expansion Into Food Business

The business world was startled last month when Amazon announced plans to acquire Whole Foods, but analysts say it’s just more evidence of Amazon’s ambitious expansion into the food business.In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization, and it’s the eighth largest employer in the United States. Food industry analysts have noticed Amazon has registered a number of trademarks for meal-kit concepts and prepared foods that would fit into its home delivery model.And Amazon has been developing its own lines of pre-made food aimed at people searching for more quality ingredients. For instance, the company has around 10 trademarks related to the phrase “single cow burger.”The single cow burger concept stems from Wagyu grass-fed beef burgers Amazon already sells. In advertisements, the company asks, “How many cows does it take to make one burger? Thanks to Amazon, just one.” The single-source beef burgers are available exclusively on Amazon Prime.Amazon’s venture into the beef business may open new avenues for sales and help increase consumer demand for beef. However, Amazon’s growing influence on the food industry also suggests greater demand for beef with buzzword attributes – high quality, humanely raised and sustainable. 

Heat continues to stress crops in Montana as harvest begins

Hot, dry, and windy conditions with very limited precipitation occurred across the majority of the state, according to the Mountain Regional Field Office of the National Agricultural Statistics Service, USDA.Harvest is beginning for winter wheat, oats, peas and lentils.As of July 24, some 39 percent of the winter wheat was harvested for grain; 27 percent of the lentils and 29 percent of the peas were combined, and 3 percent of the oats were cut.According to the USDA, much of the barley and spring wheat have been cut for hay or grazed out due to dry conditions.Producers in areas where precipitation has been adequate and that have hay are hesitant to sell more of it until the second cuttings of hay are finished.Tim Fine, Montana State University Extension agent in Richland County, where dry conditions exist, said producers are looking for hay or alternatives to hay.“The heat stress has affected the small grain crops. Some of the crops did not have heads fill, so they were swathed and hayed,” he said. There is still more hay needed throughout eastern Montana.Fine also has irrigated producers in his county, in addition to dryland, and even the irrigated producers are noting crops are becoming heat-stressed.Duane Peters, ag manager at Sidney Sugars said producers are reporting as low as 4 bushels/acre of barley with no heads filling.“Our crops here in the Valley are very dry. Dryland crops were planted into dry soils, and with little rain, they have not developed,” Peters said.Out in the irrigated fields, producers are getting a 50-60 bushel/acre wheat or barley crop, where they normally would have had around 80 bushels/acre.“Because of irrigation, they will still have a crop,” Peters said. “Guys without irrigation are not getting much in the way of bushels because of this heat.”Eastern Montana ranchers are also suffering from the massive Lodgepole complex fires that so far have burned about 270,000 acres of private, state and federal lands in an area noted as in extreme drought on the U.S. Drought Monitor. The complex is composed of four fires: Bridge Coulee, Barker (20 miles north of Sand Springs), South Breaks and Square Butte.This area is composed of a lot of ranches with rangeland and pastures that have been burnt to the ground. Fencing is destroyed, and some facilities are gone, along with many homes.With the extreme drought, the fires added to the struggles of farmers in the area. Some farmers and ranchers are helping battle the fires or providing supplies.Montana requested emergency help to battle the wildfires, and was turned down by U.S. government officials. The state appealed and U.S. Sen. Jon Tester brought the appeal to the forefront, asking for reconsideration.Firefighters continue to make progress on the fires south of Lake Fort Peck.Throughout the state of Montana, high temperatures ranged from the upper 80s in the southwest to 107 degrees in the southeast, where many farms are struggling from the heat as harvest begins.Low temperatures ranged from 32 degrees in Wisdom to the upper 50s in the south central region.The highest amount of precipitation was recorded in Ridgeway with 0.81 of an inch of moisture while other stations recorded between zero and 0.61 of an inch of moisture.Since April 1, many areas are way below normal on precipitation including Plentywood, 19 percent of normal; Wolf Point, 23 percent of normal; and Culbertson, 27 percent of normal, which are all towns in the northeast. In the southeast, Miles City is at 29 percent of normal, and Broadus is at 35 percent of normal precipitation.Crop conditions continue to deteriorate due to the hot, dry weather.Soilmoisture conditions are declining with 92 percent of topsoil rated very short to short compared with 34 percent of topsoil last year rated very short to short.Some 88 percent of subsoil is rated very short to short, compared with 37 percent of subsoil last year rated very short to short.It is one of those years when crop development depended on which region of the state a producer farmed in.Winter wheat condition is rated 45 percent good to excellent, and 40 percent fair, compared with the five-year average of 60 percent good to excellent.First cutting of alfalfa is 93 percent complete while second-cutting of alfalfa is 28 percent completed. Grass hay is 92 percent complete of first cutting, and other grass hay second-cutting is 5 percent completed.According to the NASS, pasture and range conditions are 28 percent in fair condition, and 15 percent in good condition.

Political Calendar Favors Quicker NAFTA 2.0 Deal: Commerce's Ross

Factors signaling that North American Free Trade Agreement (NAFTA) renegotiation should be concluded sooner rather than later include the expiration of trade promotion authority (TPA) in mid-2018, Commerce Secretary Wilbur Ross told the Economic Club of Washington this week.TPA allows the president to submit implementing legislation for a trade deal to Congress for a straight-up or down vote. The mechanism prevents potentially deal-busting amendments. The current congressional grant of TPA applies to agreements reached before July 1, 2018, with a possible extension to July 1, 2021. Implementing bills may get no amendment consideration if negotiated during the time period for which TPA is in effect.“You never know. And it's probably a big mistake to set a particular date,” Ross said when asked how long the NAFTA talks with Mexico and Canada would last. “But the political calendar both here and there suggest it should get done pretty quickly,” he said.Ross also cited the U.S. midterm elections, July 2018 presidential elections in Mexico and provincial elections in Canada as “political calendar” reasons bolstering the proposition that “quicker is more likely to be conclusive than waiting.” NAFTA talks are scheduled to start Aug. 16.TPP and NAFTA 2.0. The Trans-Pacific Partnership (TPP) would not have garnered enough political votes for passage by the time of the 2016 election, Ross said. Trump pulled the U.S. out of the 12-nation pact shortly after his inauguration. But Ross said there were “some very good features” to the TPP, which also included NAFTA partners Canada and Mexico. “Some of those are features we'll be trying to build upon in subsequent trade negotiations,” he said, without providing further specifics. TPP member Japan has not said it is yet ready to negotiate a bilateral trade pact with the U.S., Ross said.Clovis Officially Nominated For Key USDA Post 
President Donald Trump officially nominated Sam Clovis for USDA undersecretary for research, education and economics on Tuesday. His nomination has been controversial although many farm and commodity groups recently noted their support.Senate Agriculture Chairman Pat Roberts, R-Kan., said a nominee who regarded crop insurance as unconstitutional "might as well not show up" to his committee hearing. In a 2013 interview with an Iowa talk radio host, Clovis listed crop insurance subsidies as spending that he said was unconstitutional.Roberts later said "it's too early" to say whether Clovis' expected nomination should be withdrawn. Clovis should have the opportunity to talk with the Agriculture Committee leaders and explain "why in the hell he said that," Roberts said. 

NCBA Warns Congress on COOL

The National Cattlemen's Beef Association warned lawmakers Wednesday not to resurrect Country of Origin Labeling for meat through North American Free Trade Agreement renegotiations. NCBA CEO Kendal Frazier told the House Agriculture Committee that if the Trump administration gave COOL new life in NAFTA, trade retaliations would be imminent. Canada and Mexico have been two of America's top five export markets for beef, with approximately $1 billion each in annual sales. COOL was a law for six years, as Frazier told lawmakers it "failed to deliver" on its intention of building consumer confidence and adding value for producers. The World Trade Organization authorized Canada and Mexico to create retaliatory tariffs of more than $1 billion unless repealed. Congress repealed COOL in 2015, but Canada and Mexico still have the authority to retaliate against the United States if COOL is brought back into effect.

Grain, Ethanol Groups, Applaud Brazil Tariff Delay

U.S. grain and ethanol groups applauded Brazil’s announcement to delay a tariff on U.S. ethanol imports. Brazil announced this week it would impose a 30-day delay of a decision on a pending proposal to impose a 20 percent tariff on U.S. ethanol imports. The proposal would allow 500 million liters, or 132.1 million gallons, annually of U.S. ethanol imports before triggering the tariff. In a joint statement, the U.S. Grains Council, Growth Energy and the Renewable Fuels Association said they were “encouraged” by the postponement. The groups say the proposed action on U.S. ethanol imports will go against Brazil's longstanding view that ethanol tariffs are inappropriate and will harm the development of the global ethanol industry.

Clovis Nomination Sent to the Senate

The White House has sent the U.S. Senate the presidents nomination of Sam Clovis to a top Department of Agriculture post. The Senate confirmed this week it received President Trump's nomination of Clovis as the USDA undersecretary for research, education and economics, according to the Hagstrom Report. The nomination is coming under some scrutiny, as Senate Agriculture top Democrat Debbie Stabenow questioned his merits to serve as the USDA chief scientist, and his comments against crop insurance. In 2013, Clovis commented that he thought crop insurance was unconstitutional. Those comments would be a "nonstarter" to the leadership of the Senate Agriculture Committee, whose chairman said they would like to know why he said that. It does not, however, appear to be an issue for farm groups. 20 farm and agriculture groups offered their support for Clovis in a letter earlier this week.

Antitrust Institute, NFU, Say Monsanto-Bayer Merger Puts Farmers at Risk

The American Antitrust Institute, along with Food & Water Watch and the National Farmers Union penned a letter to the Department of Justice denouncing the Monsanto-Bayer merger. The groups say the deal would likely harm competition, farmers and consumers. The letter notes that the merger would complete a sweeping restructuring of the agricultural biotechnology industry, creating the “Big 3” companies where just two years ago, there were six major rivals. Roger Johnson, NFU’s president, pointed out that the merger is likely to affect not only the markets for genetically-modified seed, but also for important non-genetically modified, or “conventional” seed. Johnson says: “Farmers want and deserve choice in what they plant, with seed that is appropriate to their region and climate.” The letter notes that over time, firms have cut back on their conventional seed offerings, making it more difficult and costly for farmers to secure appropriate seed.

EWG Study Finds High Nitrate Levels in Rural Drinking Water Systems

The Environmental Working Group says rural water systems have high levels of nitrates. A new report and database released by EWG this week found that the 30 utilities with the distinction of the highest nitrate contamination in tests between 2010 and 2015 all exceeded the legal limit. And all 30 served small populations in rural, farm-based economies, according to Politico. The research says that nitrates, a chemical from animal waste or agricultural fertilizers, was detected in more than 1,800 water systems in 2015, serving seven million people in 48 states above the level that research by the National Cancer Institute shows increases the risk of cancer – a level just half of the federal government’s legal limit for nitrate in drinking water. EWG’s recently released national Tap Water Database allows users to search by zip code and learn about tap water quality. EWG researchers spent the last two years collecting data from state agencies and the EPA for drinking water tests conducted from 2010 to 2015 by 48,712 water utilities in all 50 states and D.C.

Study Claims to Find Glyphosate in Ben &Jerry’s Ice Cream

The Organic Consumers Association claims it found traces of glyphosate in 10 of 11 samples of Ben & Jerry’s Ice Cream. The detected levels were far below the ceiling set by the Environmental Protection Agency. Among the flavors tested, Ben & Jerry’s Chocolate Fudge Brownie showed the highest levels of glyphosate, with 1.74 parts per billion. However, such amounts might seem insignificant. John Fagan, the chief executive of the Health Research Institute Laboratories, which did the testing for the Organic Consumers Association, calculated that a 75-pound child would have to consume 145,000 eight-ounce servings a day of Ben & Jerry’s Chocolate Fudge Brownie ice cream to hit the limit set by the EPA. Still, a Ben & Jerry’s spokesperson told the New York Times the company was working to ensure that all the ingredients in its supply chain come from sources that do not include genetically modified organisms, saying “We’re working to transition away from GMO as far away as we can get.” Monsanto labeled the research “bad science” and the rehashing of a study done five years earlier. 

Canada Quickly Moving from Customer to Competitor

POLICY  |  BY: FRAN HOWARD
U.S. dairy exporters have been losing markets this year due in part to new classes of milk in Canada and strained relations with Mexico. However, beginning in mid-August, U.S. trade representatives will have a chance to renegotiate the North American Free Trade Agreement (NAFTA).“If recent trade data from Canada and Europe are any indication, competition in global milk powder trade will be intense the rest of this year,” says Sara Dorland, analyst with the Daily Dairy Report and managing partner at Ceres Dairy Risk Management, Seattle.According to USDA’s Foreign Agricultural Service (FAS), Canada will be able to export more milk powder going forward by aggressively pricing milk proteins produced in Canada under the country’s new Class 7 milk price.“The Class 7 milk price allows Canada to sidestep the World Trade Organization ruling that prevents the country from exporting government subsidized skim milk powder,” notes Dorland. “FAS believes Canada prices its Class 7 milk off the lower of either the skim milk powder or whole milk powder (WMP) prices in New Zealand, Europe, and the United States, effectively guaranteeing that Canadian skim milk powder will always be competitive on the world market.”Canada’s new Class 7 milk price accomplishes two things. First, it makes U.S. ultrafiltered milk less attractive to Canadian buyers, and second it ensures that Canadian milk powders are competitive with U.S. nonfat dry milk in the global market. While the loss of the ultrafiltered milk market in Canada had an almost instantaneous negative impact on U.S. dairy producers, the impact of higher Canadian exports is just now starting to become evident, Dorland says.Through May 2017, Canada exported 19,924 metric tons (MT) of skim milk powder, which is 237% more than in January through May 2016. For the first five months of this year alone, Canada exported more skim milk powder than it did annually each year between 2010 and 2015. Perhaps even more worrisome for the U.S. dairy industry than losing Canada as a market for ultrafiltered milk is that in the first five months of this year Canada also increased exports to three of the top four destinations for U.S. nonfat dry milk—Mexico, the Philippines, and Indonesia, Dorland notes.At the same time, Canada is facing increased demand for butterfat and is thus putting more milk into butter, which means its milk protein surplus is also growing. According to FAS, the country’s surplus milk proteins could grow to 105,000 metric tons by 2021-22, up from 79,200 metric tons in 2014-15.“More milk powder from Canada along with unchanged domestic demand will mean more exports and likely more competition for U.S. exporters in key markets,” Dorland says. “And Canada is not the only exporter with surplus skim milk powder.”Europe’s total skim milk powder exports rose to 80,043 metric tons in May, the highest monthly volume over the past decade. Europe’s year-to-date skim milk powder exports to Mexico hit 18,733 metric tons—an increase of 332% from the same period last year—while May exports to Mexico of 6,819 metric tons were the highest since January 2002.“The value of the euro to the Mexican peso provided some incentive to buyers in Mexico to source EU milk powders,” notes Dorland. “But Mexico also could be looking for alternatives to U.S. suppliers, which could give Mexico some leverage in the upcoming NAFTA discussions”Not all the news is bad news for the United States, though. “Currency exchange rates are working in favor of U.S. exporters,” says Dorland. “And the upcoming NAFTA discussions will focus partly on reinforcing the dairy trade relationship between the United States and Mexico while seeking to level the playing field with Canada.” 

China has imposed a temporary ban on beef products from six Australian processors

China has imposed a temporary ban on beef products from six Australian processors because of concerns about label non-compliance, according to an Australian news agency.Australian government officials confirmed the ban and vowed to work closely with the beef industry and Chinese trade officials to resolve the issue, according to the ABC Ruralwebsite. The dispute does not involve health or food safety problems, but stems from non-compliance issues centered on the labeling of meat from Australian processors that include two facilities owned by Brazil’s JBS SA, the report said.Australia’s trade minister told ABC there may be “very significant amounts of trade” involved in the beef ban, including shipments that already are on the water. Australian officials are hopeful the issue can be resolved before the ships arrive in China, the report added.China is the fourth-largest beef market for Australia, whose beef exports to the country were worth more than $600 million in 2016, ABC said. 

National Cattlemen’s Beef Association CEO Testifies on Capitol Hill: “Please Do No Harm!”

Frazier Outlines How NAFTA Has Benefited U.S. Beef Producers: Billions in Annual Sales, “Difficult to Improve Upon Duty-Free, Unlimited Access to Canada and Mexico”

 WASHINGTON (July 26, 2017) – National Cattlemen’s Beef Association (NCBA) CEO Kendal Frazier today testified on Capitol Hill in support of the North American Free Trade Agreement (NAFTA) and warned Congress against using the treaty’s renegotiation to resurrect failed policies like mandatory Country-of-Origin Labeling (COOL.)“Quite frankly, it is difficult to improve upon duty-free, unlimited access to Canada and Mexico, and we are pleased to see the Office of the U.S. Trade Representative announce its support for continued reciprocal duty-free access,” Frazier told members of the U.S. House Committee on Agriculture. “Even still, our message remains the same: please do no harm and do not jeopardize our access.”Frazier pointed out that on average, Canada and Mexico have been two of America’s top five export markets for beef, with approximately $1 billion each in annual sales. While spotlighting the benefits that NAFTA has delivered for cattle and beef producers, Frazier also discussed the ways in which mandatory Country-of-Origin Labeling hurt producers when it was tried previously.“COOL was U.S. law for over six years and failed to deliver on its promises to build consumer confidence and add value for our producers,” Frazier pointed out. “Instead, COOL resulted in a long battle in the World Trade Organization - with the United States facing the promise of more than $1 billion dollars in retaliatory tariffs from Mexico and Canada unless COOL was repealed. Canada and Mexico still have the authority to retaliate against the United States if COOL is brought back into effect – and rest assured they will retaliate against us if necessary.”“We must learn from the mistakes of the past and not repeat them,” Frazier concluded. “We encourage you to build on the success that current NAFTA provisions have given U.S. beef producers.” 

From One Of The Highest To One Of The Lowest Investment Returns: Agribusiness

OMAHA (DTN) -- Major agribusinesses have gone from being among the highest-returning investments for shareholders prior to 2012 to being among the lowest returners from 2012 to 2016 due to the downturn in the ag economy, according to a survey of 40 global agriculture companies released this week.A new report from the Boston Consulting Group on the state of agribusiness, however, shows times are good for processed-protein companies, while those companies that find a way to navigate the near-term challenges in agriculture will come out on top.Seven of the top 10 companies in terms of shareholder returns are in processed proteins, while the remaining three are a fertilizer producer, an agriculture equipment company and a processed crop producer. Three of the top 10 are U.S. companies.According to "Sowing the Seeds of Recovery, The 2017 Agribusiness Value Creators Report," agribusinesses went from being the top investment for shareholders among industry groups surveyed to near the bottom.The average annual shareholder return between 2012 and 2016 for those businesses surveyed was about 7%, lower than all but two other industry groups surveyed."This performance is a 180-degree turnaround compared with 2007 through 2011, when the agribusiness industry's TSR was higher than that of every other industry surveyed," the report said. TSR is the annual percentage return to owners, which comes from capital gains plus dividends.Although commodity prices show no signs of rebound in the near term, the report said agribusinesses have an opportunity for growth."Notwithstanding the agribusiness industry's ongoing challenge, several long-run demand trends including population growth, higher per capita calorie consumption, and the increasing use of crops in biofuel, will continue to support opportunities for value creation over the long term," the report said."The question is which companies will weather the near-term challenges, navigate through a crowded field of yield-enhancing technologies, and emerge as the strongest competitors. We believe it will be those that place farmers' economics at the center of decision making.
"FERTILIZER COMPANY RETURNS TAKE HIT
The survey showed fertilizer producers have taken the biggest hit as a result. Those companies led the survey in terms of shareholder returns from 2007 to 2011, but in the latest survey reported negative returns.Despite the hits to agribusinesses during the commodity price declines, the survey said, agriculture companies appear ready for a rebound."An increase in valuation multiples across industry subgroups reflects the market's expectation that a cyclical recovery of commodity prices will boost performance over the long term," the report said.The top 10 companies and their average shareholder returns include: Marine Harvest, Norway, 46.6%; PhosAgro, Russia, 35.3%; NH Foods, Japan, 29.2%; Glanbia, Ireland, 29%; Tyson Foods, United States, 25.8%; Kubota, Japan, 23.3%; Ingredion, U.S., 21.3%; Dean Foods, U.S., 17.1%; JBS, Brazil, 15.2%; China Mengniu Dairy, 13.7%.BCG surveys what it calls 40 pure-play public agribusiness companies that generate most of their revenue from the direct production of agriculture inputs and outputs, with market capitalizations from $1 billion to $40 billion.The survey does not include state-owned enterprises, private companies such as Cargill, J.R. Simplot and Koch Industries, or diversified companies such as DuPont, Dow Chemical, BASF and Bayer. The survey also does not include cooperatives such as Land O'Lakes or companies such as Hormel."For many agribusinesses, depressed prices for agricultural commodities have been the main factor impeding value creation," the report said."Corn prices, for example, have fallen by more than 50% since 2012. In the United States, the collapse of commodity prices has driven down net farm income to less than half of the peak reached in 2013. The resulting pressure on farmers' economics has reduced margins for farm inputs, such as seeds and equipment.
"MERGERS, ACQUISITIONS
The BCG report took a look at the effects of mergers and acquisitions, finding the "combined deal value of mergers pending approval in 2017 is more than that of all mergers completed during the previous 10 years."The report said that merger and acquisition activity hit a record high in 2011 with $14 billion in total transactions completed in agribusiness. From 2012 to 2016, however, the average annual transactions were about $7 billion.A number of megadeals remain in the works in 2017, potentially valued at more than $200 billion, including Dow and DuPont, Bayer and Monsanto, ChemChina and Syngenta, and PotashCorp and Agrium."Although three of the 'big ag' players involved in pending deals -- Bayer, Dow and DuPont -- were excluded from our sample owing to their diversified businesses, it is important to understand what is motivating the industry's largest players to join forces," the report said."Big ag players have not escaped the effects of farmers' constrained economics. Farmers' prices sensitivity has driven down revenues and margins, while R&D productivity has declined and R&D costs steadily increased. Faced with these challenges, the large players are combining in order to achieve a variety of objectives."The BCG report said if all the pending mergers and acquisitions are completed, the new companies will control about 70% of the global pesticide market, more than 60% of commercial seed sales and about 80% of the U.S. corn seed market."The outcome of the regulatory process will dictate how the broader market is affected," the report said."Given the requirement for divestitures, other large players (such as BASF) will have an opportunity to create value by acquiring strategic assets."The report points to FMC Corp.'s market value, which soared by more than $1 billion on the day the company announced an acquisition of a portion of DuPont's crop protection business. 

U.K. and U.S. Taking First Steps to Trade Deal

British International Trade Secretary Liam Fox and U.S. Trade Representative Robert Lighthizer have taken the first steps towards a U.S.-U.K. free trade agreement. The duo recently met to create a working group that will “lay the groundwork” for a bilateral trade deal, according to Politico. However, official negotiations cannot begin until the United Kingdom formally leaves the European Union around April 2019. In 2014, the U.K. was reported to rely on the EU for 27 percent of its food imports. Just four percent of food items in the U.K. originated from North America, and 54 percent of food consumed in the U.K., originated in the U.K., according to the U.K. Department for Environment, Food and Rural Affairs. The newly established U.S.-U.K. Trade and Investment Working Group will explore trade priorities for the two nations.

Crop Insurance Comments Could Jeopardize Clovis Nomination

Comments made by Senate Agriculture Committee leaders suggest that Sam Clovis’s position on crop insurance could jeopardize his nomination for a top post at the Department of Agriculture. Senate Agriculture Ranking Democrat Debbie Stabenow and Chairman Pat Roberts both eluded to the nominee’s statements on crop insurance. Clovis has previously questioned the constitutionality of crop insurance. Stabenow said: “It is important we all continue to work together to make sure we have the resources we need for crop insurance,” while Roberts commented that: “If there is some nominee who is coming before the committee who says crop insurance is unconstitutional, they might as well not show up.” Roberts said after Tuesday’s hearing that it is too early to say whether the Trump administration should withdraw Clovis’s nomination, but that Clovis should have an opportunity to explain his comments to him and Stabenow, according to the Hagstrom Report. Clovis was nominated by President Trump to serve as the USDA undersecretary for research, education and economics.

Bankers List Goals for New Farm Bill, Ways to Prevent Farm Crisis

The Independent Community Bankers of America is urging Congress to adopt a new long-term farm bill incorporating five broad goals and offered enhancements to USDA programs to prevent a farm credit crisis. Testifying before the Senate Agriculture Committee Tuesday, an ICBA representative advocated for Congress to adopt a dynamic multi-year farm bill to provide continuity and enable agricultural producers and their lenders to engage in multi-year business decision making. The organization wants Congress to provide producers ample funds for commodities, crop insurance and credit programs to help them weather a potential farm income or farm credit crisis. Other goals include: considering any program changes that benefit producers and their community banks, directing agencies to reduce regulatory burdens and prohibit regulations not based on statutory language, require federal agencies' rules to treat all categories of program participants fairly, and requiring direct loan programs to complement, not undercut, private sector lending.

Perdue to Attend House Farm Bill Listening Session

Agriculture Secretary Sonny Perdue will attend a farm bill listening session in Texas next week. The listening session by the House Agriculture Committee will feature comments from Texas farmers on farm bill priorities. The “Conversations in the Field” is planned for 10:00 a.m. central time Monday, July 31st, at Angelo State University in San Angelo, Texas. It follows a listening hearing last month at the University of Florida in Gainesville, Florida, and a handful of hearings on Capitol Hill by both the House and Senate Agriculture Committees. House Agriculture Committee Chairman Mike Conaway earlier this year vowed to complete the 2018 farm bill "on time," adding that completing the farm bill on time will avoid adding more uncertainty to an already strained farm economy.

Pork Industry Supports No Regulation Without Representation Act

The National Pork Producers Council Tuesday expressed support for the No Regulation Without Representation Act of 2017. The legislation, introduced in the U.S. House by Wisconsin Republican James Sensenbrenner, would stop states from adopting laws and regulations that ban the sale of out-of-state products that don’t meet their criteria. NPPC says that means the bill would prohibit a state from imposing tax or regulatory burdens on businesses, including pork operations, that are not physically present in the state. NPPC CEO Neil Dierks testified to Congress Tuesday saying: “Changes in production practices should be driven by the marketplace, not government fiats or even ballot initiatives.” Nine states have banned, through legislation or ballot measures, gestation stalls, battery cages and veal crates, but only California and Massachusetts extended the bans to sales in their state of products produced anywhere in the country that don’t comply with their housing standards.

Chlorpyrifos Ban Introduced in U.S. Senate

Connecticut Democrat Richard Blumenthal and New Mexico Democrat Tom Udall Tuesday introduced a bill in the U.S. Senate to ban chlorpyrifos (clo-PEER-uh-foss), a widely used agricultural insecticide. Udall explained that The American Academy of Pediatrics says chlorpyrifos use "puts all children at risk,” adding that “we need to listen to the experts” and ban the pesticide.” The Obama-era Environmental Protection Agency was poised to ban Chlorpyrifos. However, new EPA administrator Scott Pruitt denied the petition calling for the ban, arguing that the EPA needs more time to study the health risks of the chemical. Chlorpyrifos has been used as a pesticide since 1965 in both agricultural and non-agricultural sectors, according to the EPA. The chemical is used to protect a number of crops such as soybeans, wheat, alfalfa, citrus, tree nuts, peanuts, vegetables, and others, from losses to insect pests. 

USDA’s monthly Cold Storage report

USDA’s monthly Cold Storage report revealed total frozen poultry supplies on June 30, 2017 were up 4 percent from the previous month and up 4 percent from a year ago.Total stocks of chicken were up 3 percent from the previous month but down 1 percent from last year. Total pounds of turkey in freezers were up 7 percent from last month and up 12 percent from June 30, 2016.Total red meat supplies in freezers were down 3 percent from the previous month and down 7 percent from last year.Total pounds of beef in freezers were up 1 percent from the previous month but down 10 percent from last year.Frozen pork supplies were down 5 percent from the previous month and down 4 percent from last year. Stocks of pork bellies were down 29 percent from last month and down 65 percent from last year. 

Lodgepole Complex Fire Grows To Over 226K Acres, Generosity Of Friends And Neighbors Continues To Grow

Sand Springs--The Lodgepole Complex Fire West of Sand Springs, Montana has grown to over 226,000 acres over the last four days. Despite the unpredictability of this capricious monster, one thing is certain: The generosity of friends and neighbors has been immense and continues to grow.Since the fire took off on Friday July 21, volunteers have shown up from across the county and the state to bring water tankers, graders, generators, food and anything they can to help.Community members have utilized Facebook to make and answer requests. Mary Brown from LO Cattle Company 10 miles west of Sand Springs off of Highway 200 says, "The outpouring of love has been so generous with food and groceries that food and water is no longer a concern for the firefighters. Now, we are looking at all the people that have been completely devastated by this fire who are trying to find ways to pay for hay and take care of their cattle. The only way they can do that is through finding trucking, money and hay sources."The fires continue to burn as the wind has picked up on Monday morning.  Many ranchers are still fighting to defend what land and livestock they have left and can only dream at this point of what "rebuilding" will look like.
For those who are interested in helping, here is a running list of what is needed and where you can help or donate: FOR FIRE SUPPRESSION ASSISTANCE:·        Anne Miller: 406-853-3610·        Dale Ann Billing: 406-853-2998·        Garfield County Sherriff: 406-557-2540 HAY, TRUCKING AND CATTLE FEEDING COORDINATION:·        Circle - Jana Hance, Redwater Valley Bank: 406-485-4782·        Miles City - Bart Meged 406-951-3005 & Misty Meged 406-951-4840 FENCING DONATIONS (Labor and Materials):·        Anne Miller (Jordan): 406-853-3610·        Reeverts Fencing LLC: 406-487-2363 accepting monetary donations for fencing supplies by phone CASH DONATIONS:·        Checks can be made to Garfield County Fire Foundation c/o Garfield County Bank PO Box 6, Jordan, MT  59337 or send to Circle c/o Redwater Valley Bank, PO Box 60, Circle, MT 59215·        Cash and credit card donations for fuel are accepted at Farmers Union Oil / Cenex in Jordan at 406-557-2215 FOOD/FIRST AID/PERSONAL DONATIONS: (Recommended: On the go foods, travel size toiletries, fruits)·        Jeana Stanton 406-230-2217·        Sherlie Hains 406-230-1672·        Ryan's Grocery in Jordan 406-557-2744 OTHER DROP-OFF LOCATIONS:FIRE AREA DROP-OFFS:·        Jordan: VFW Hall·        Sand Springs: Sand Springs Store (Sandy Gibson) 30 miles west of Jordan on Hwy 200·        Fairview Hall - Brusett Road 

Washington Insider: More Pressure Against Ag Checkoff Programs

USDA has long run programs to promote consumption of particular commodities basically on the theory that the government has a stake in maintaining strong markets for U.S, farm products. The programs are overseen by USDA, and are prohibited from lobbying Congress. Farmers grumble about the programs’ costs, but frequently vote to support them on the theory that they do what individual farmers cannot.However, The Hill reminds that not everyone likes these programs, especially those who wish to promote their own brands. Others focus on a broad range of social issues such as small farmers, and animal rights activists. Groups of program opponents flew to Washington recently to meet with lawmakers and push for legislation they say will bring needed reforms.At issue are the mandatory fees for the programs, The Hill says, even though the funds have been used for such popular campaigns as the "Got Milk" ads and the "Beef: It's What's for Dinner" campaign and many others.Program critics argue that those programs promote policies for industrialized agriculture, not small farmers and ranchers and the recent fly-in this month was organized by the Humane Society of the United States and Humane Society Legislative Fund. Program opponents have many and various reasons for opposition. “The least we are asking for is transparency,” Eric Swafford, Tennessee HSUS state director and a former Republican state representative, told The Hill.“No one can see how these checkoff dollars are being spent, and there is no accountability. The system is inherently broken,” Swafford, a fourth-generation cattleman, added.One of the opposition bills, the Opportunities for Fairness in Farming Act, would enforce greater transparency on how the funds are used.The bill has bipartisan support and was introduced by Sens. Mike Lee, R-Utah, and Cory Booker, D-N.J., Reps. Dave Brat, R-Va., and Dina Titus, D-Nev., are working on companion legislation in the House.“Federal checkoff programs, which impose a mandatory tax on farmers and ranchers, are in desperate need of reform,” Booker told The Hill. “Checkoff programs need to do a better job of spending their dollars in ways that benefit small family farmers, and the legislation that Senator Lee and I have introduced will increase transparency and help restore trust in checkoff program practices.”The OFF Act would require checkoff programs to publish all budgets and expenditures of funds and to submit periodic audits by the USDA inspector general.In 2005, checkoff dollars were ruled as government taxes rather than producer fees, but there is insufficient attention to auditing those funds, the Hill asserts, although the programs are required to submit frequent reports to Congress.The promotional ad campaigns have helped boost American agriculture, but they are opposed by both larger and smaller farmers and ranchers, who complain that their needs are not being met. They even accuse the programs of lobbying for legislation that promotes the interests of big producers and blame lax oversight at the Agriculture Department. “Young and alternative farmers are seeking a voice, but are being deprived of the opportunity,” Swafford said.Another reform bill, the Voluntary Checkoff Program Participation Act, introduced by Lee and Brat in the House, would take the OFF Act a step further by prohibiting the compulsory checkoff programs altogether.Many of the attendees were hopeful the Trump administration would back their push.The programs have almost always been controversial, but the opponents seem a little better organized now—and, it would be surprising if the new administration will favor what is, after all, another government program with mandatory private funding.There also has long been a low-level suspicion that the programs may not do much good, especially given the problems the US faces with obesity today—in spite of library shelves full of reports on positive cost-benefit ratios. So, this is another area of potential change that producers should watch closely as yet another “checkoff” debate proceeds, Washington Insider believes. 

Soybean, corn and spring wheat condition ratings all worsened in the last week

OMAHA (DTN) -- Soybean, corn and spring wheat condition ratings all worsened in the last week, according to USDA's weekly Crop Progress report released Monday.Soybeans were rated 14% poor to very poor in the week ended July 23, compared to 11% last week. Fifty-seven percent of the crop was rated good to excellent, compared to 61% last week."Fifty-seven percent of the soybean crop was rated good-to-excellent, resulting in a DTN Soybean Condition Index of 135, which is down 11 points from last week," Said DTN Analyst Todd Hultman. "The index is down from 170 a year ago and is also lower than the past four years. Monday's report is bullish for soybeans."Sixty-nine percent of soybeans are blooming, while 29% are setting pods. That compares to 52% and 16% last week, 74% and 33% last year and averages of 67% and 27%.Corn conditions were rated 12% poor to very poor, compared to 11% last week. "Sixty-two percent of the corn crop was rated good-to-excellent, resulting in a DTN Corn Condition Index of 147, down 5 points from last week," said Hultman. "DTN's index is down from 184 a year ago and is still lower than the past four years. Monday's report is bullish for corn."Sixty seven percent of the corn is silking and 8% is in the dough stage, compared to 40% and NA last week, 76% and 12% last year and averages of 69% and 13%.Spring wheat was rated 40% poor to very poor, compared to 41% last week. "Thirty-three percent of spring wheat was rated good-to-excellent, resulting in a DTN Spring Wheat Condition Index of 37 which is the same as a week ago," Hultman said. "DTN's index is down from 160 a year ago and is still the lowest since 1988. Monday's report remains bullish for spring wheat."Winter wheat is 84% harvested, compared to 75% last week, 82% last year, and an 80% average. Hultman said this was neutral for the market.Sorghum is 38% headed and 21% coloring, compared to 31% and 20% last week, 48% and 22% last year, and averages of 42% and 25%. Sorghum condition worsened to 59% good to excellent, compared to 63% last week.Barley is 97% headed, compared to 89% last week, 97% last year and a 97% average. Barley condition worsened, with more of the crop moving into the fair rating and out of the good to excellent category.Oats are 24% harvested, compared to 14% last week, 35% last year and a 31% average. 

Multiple Rounds of NAFTA Negotiations Expected

A top official from Mexico expects between six to nine rounds of negotiations between the United States, Mexico and Canada on the North America Free Trade Agreement. Mexico’s Economy Minister said last week the NAFTA members were looking at avoiding gaps of more than three weeks between negotiating rounds with a view to making quick progress, according to Reuters. The three countries had already agreed to an aggressive timetable to broker a deal on NAFTA to avoid politicizing Mexico's presidential election in July 2018. The first round of talks on renegotiating NAFTA is due to begin in Washington on August 16th.

Drought, Prices Weaken Rural Midwest Bankers’ Outlook

After rising to growth neutral for two straight months, the Creighton University Rural Mainstreet Index fell below the 50.0 threshold for July, according to the latest monthly survey of bank CEOs in 10 Midwestern states. The index, which ranges between 0 and 100, tumbled to 40.7, its lowest level since November of last year, and down from 50.0 in June. Organizer Ernie Goss says drought conditions and weak grain prices are to blame, as they have attributed negatively to economic conditions. For the month, the July farmland and ranchland-price index sank to 36.6 from June's 40.0. The July farm equipment-sales index fell to 20.0 from 26.2 in June. Borrowing by farmers was very strong for July as the loan-volume index climbed to 81.5, the second highest reading on record, and up from 78.3 in June. Finally, the confidence index, which reflects expectations for the economy six months out, slumped to a weak 38.4 from 48.9 in June, indicating a continued pessimistic outlook among bankers.

Farm Groups Support Clovis Nomination

While some lawmakers have voiced concerns, agriculture groups Monday vocalized support for the nomination of Sam Clovis to a Department of Agriculture position. President Trump announced he would nominate Clovis to serve as the USDA undersecretary for research, education and economics, which also serves as the departments chief scientist. Senate Agriculture Committee ranking member Debbie Stabenow, Senate Appropriations Committee ranking member Patrick Leahy, and Senator Chris Coons, all Democrats, have questioned the nomination because Clovis does not have a scientific background. However, more than 20 agriculture groups signed a letter to Senate Agriculture Committee Chair Pat Roberts Monday expressing support for the nomination. The groups, including the National Council of Farmer Cooperatives and the American Farm Bureau Federation, said USDA already has lots of scientists, according to the Hagstrom Report. The letter stated: “They do not need a peer. They need someone to champion their work before the administration, the Congress, and all consumers around the world.”

Senate Committee Blocks E15 Bill

The Senate Environment and Public Works Committee has halted a bill that would have allowed gasoline with 15 percent ethanol to be sold year-round. The bill was co-sponsored by Republican Senators Deb Fischer of Nebraska and Chuck Grassley of Iowa, along with Democratic Senator Joe Donnelly of Indiana. Despite the bipartisan support, the legislation was unable to muster enough support in the committee. Committee leaders announced Friday that there would be no action on the bill before the August recess. It also remains unclear whether the legislation will be resurrected sometime in the fall. Ethanol groups say the fight for year-round E15 sales doesn’t end with the failure of support for the bill. Further, Environmental Protection Agency Administrator Scott Pruitt said in May that the EPA was working to determine whether the agency had the authority to allow year-round sales of E15 fuels

Class Action Lawsuit Aimed at Monsanto Over Dicamba Spraying

A lawsuit filed last week accuses Monsanto sales representatives of secretly giving farmers assurances of using “off label” methods for a dicamba herbicide formulation. The St Louis Post-Dispatch reports the lawsuit claims: “This was Monsanto’s real plan: publicly appear as if it were complying, while allowing its seed representatives to tell farmers the opposite in person.” A Tennessee weed management expert, Larry Steckel, says in the suit that “it’s almost impossible” to follow label directions for dicamba-based herbicides, given the recent changes that have surfaced over drift allegations. Formulations were changed to dicamba-based herbicides following an outbreak of drift incidents last year to reduce volatility and drift. However, those changes have not seemed to slow reports of drifts problems in 2017. The suit says the defendants “actually benefit” from rampant drift, because it pressures farmers to adopt dicamba-tolerant seed to avoid damage. Monsanto and BASF indicated to the Post-Dispatch that they were aware of the suit but declined to comment on specific allegations. Both companies cited their efforts to educate growers about correct application of dicamba.

Shareholders File Class Action Suit Against Chipotle

A New York law firm last week announced it would lead a class action lawsuit against Chipotle by the company’s shareholders. The lawsuit was filed against Chipotle Mexican Grill and its officers, on behalf of shareholders who purchased Chipotle securities between February 5th, 2016, and July 19th, 2017. The class action seeks to recover damages for alleged violations of federal securities laws under the Securities Exchange Act of 1934. The suit alleges that Chipotle made false statements relating to the chains food quality and safety measures, following several occasions of illness outbreaks relating back to Chipotle restaurants. The most recent outbreak of norovirus originating from a Chipotle restaurant in Virginia, and a report of rats falling out of a Chipotle restaurant ceiling in Dallas, Texas, sparked the lawsuit. This is not the first time a class action suit was filed on behalf of Chipotle shareholders. A similar suit was filed in the wake of E. coli and norovirus outbreaks of 2015. 

Ranchers placed 16.1 percent more cattle in U.S. feedlots last month than in June 2016

Ranchers placed 16.1 percent more cattle in U.S. feedlots last month than in June 2016, making it the most for the month in more than a decade, the U.S. Department of Agriculture reported on Friday.Good profits for feedlots in June allowed them to buy more calves for fattening for sale to packing plants, said analysts.They said an increasing number of cattle in parts of the northern Plains were entering feedyards as drought grips the region.On Monday, Chicago Mercantile Exchange live cattle futures deferred contracts may open lower - largely based on Friday's report on placement outcome, the analysts said.USDA's report showed June placements at 1.770 million head, up from 1.525 million a year earlier and above the average forecast of 1.618 million. It was the most for the month since 1.95 million in 2006.The government put the feedlot cattle supply as of July 1 at 10.821 million head, up 4.5 percent from 10.356 million a year ago. Analysts, on average, forecast a 2.9 percent gain.USDA said the number of cattle sold to packers, or marketings, were up 4.0 percent in June from a year ago, to 1.989 million head.Analysts had projected an increase of 4.7 percent from 1.912 million last year.Worsening drought in the upper Plains resulted in more cattle taken off grazing land, contributing to larger-than-anticipated June placements, said U.S. Commodities analyst Don Roose.He said ramped up beef demand was needed to compensate for increased cattle supplies ahead.Livestock Marketing Information Center (LMIC) director Jim Robb attributed June's cattle placement surge to feedlot profitability, which encouraged them to pull in more animals from a broad region of the country - including areas stricken by drought.LMIC calculated that feedlots in June, on average, made a profit of $210 per steer sold to meat companies versus a roughly $80 loss a year earlier.On Friday the government simultaneously issued the semi-annual cattle inventory report. It showed the July 1 U.S. cattle herd at 102.6 million head, up from 98.2 million two years ago.USDA did not publish the July 2016 cattle inventory data due to budgetary issues.The report suggests the herd continues to expand, said Robb. He added that the second half of 2017 would be more critical than the first half, in terms of the rate of expansion, because of the drought and more heifers entering feedlots.