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Tuesday, October 31, 2017
Lawmakers Eye Senate Ag Spending Changes for Farm Bill
Cotton and dairy program changes in the Fiscal 2018 ag appropriations package could help cotton and dairy farmers who maintain their safety net programs under the 2014 Farm Bill are not adequate.For cotton, the Fiscal 2018 appropriations bill (S1603) would direct USDA to make cottonseed eligible for payments under the Price Loss Coverage program beginning with the 2018 crop year. Current farm bill language does not include cottonseed among eligible oil seed crops and USDA has maintained they do not have the authority to make cottonseed an eligible oilseed.As for dairy, Sen. Patrick Leahy, D-Vt., ranking member on the Senate Appropriations Committee, says he and other dairy state lawmakers included industry-backed changes to make the dairy program more effective and affordable for farmers. The bill would replace the bimonthly calculations with monthly formulas supporters say will provide more real-time tracking of dairy market conditions. The spending bill also would allow participating farmers to insure more milk at a lower cost and waive a $100 administrative fee for underserved dairy farmers. Those changes are expected to trigger payments to participating farmers more quickly in times when milk prices decline, animal feed costs rise or there is a combination of low prices and higher feed prices.
TPP-11 Want Deal That Leaves Door Open to US: Australian Official
Keeping the Trans-Pacific Partnership (TPP) trade pact in a form that might lure the U.S. back is a key point of discussion for negotiators from the remaining 11 countries, according to deputy secretary of Australia's Department of Foreign Affairs and Trade, Justin Brown."A key objective that we all share is to try and use this agreement to encourage interest in the U.S. to reconsider their approach," Brown said at an Australian Senate committee hearing last week. TPP-11 countries recognize that means keeping in place the pact's provisions on market access aspects, including tariff elimination and access for services and investment, Brown reported.Those are extremely important issues for American exporters and businesses, "so there is a strong view among the TPP-11 not to disturb the market access package for that reason," Brown told the hearing. Australia's primary aim is to prevent any changes to TPP deal that might lead to its unraveling or that might impede its rapid entry into force, he added.
Washington Insider: Judd Gregg on Inflation, or the Lack of It
Judd Gregg is a former Republican governor and three-term senator from New Hampshire who served as chairman and ranking member of the Senate Budget Committee and as ranking member of the Senate Appropriations Foreign Operations subcommittee. In all those jobs, he has become well known for his views on monetary policy. So, it is especially interesting that he wrote this week for Roll Call a cautionary note on dealing with inflation as the administration moves to name new Fed leadership.Gregg begins by noting that for those “who lived through the double-digit inflation of the late 1970s and early 1980s, inflation is something to be genuinely feared.” And, for those who lived through the stagflation of the early 1990s, inflation is something to be genuinely concerned about. He believes that nothing wipes out wealth faster or reduces the standard of living of a culture more dramatically than an economy caught up in runaway inflation.He argues that the root cause of inflation “is often the failure of the government to curb the way it controls its money supply.” And, he thinks that a printing press that makes money can be a dangerous and destructive thing when put in the hands of people who govern.This is why, in 1913, Congress separated “the people who govern from those who print our money” by forming the Federal Reserve. The Fed’s primary goal from its earliest days was to “suffocate inflationary forces and protect the value of the dollar.” Later, it was also given the charge of pushing for full employment.More recently, Gregg says, during the 2008 financial meltdown, the Fed took the extraordinary, unprecedented tack of printing enormous sums of money. Those new dollars, which took the Fed balance sheet from approximately $850 billion to over $4 trillion, were used to flood the economy. The intention was to stabilize the financial system by injecting huge amounts of liquidity into it.It worked, he says.The banking system of America, and especially Main Street, did not fail. What could have been a Depression ended up being a serious but economically survivable recession. We now face the issue of what to do with all these extra dollars that have been printed and that are theoretically slogging around the country.Then the article notes that classic “economic theory says that since between $3 trillion and $4 trillion were printed, those dollars should create great inflationary pressure as conditions improve.” He asserts that we should be on the verge of an upward inflationary spiral, but “where is it?” We are essentially at full employment, at least using all the traditional yardsticks—and, we have a stock market that is at historic highs and continues to climb. And, the rate of inflation does not seem to be moving up in parallel.In fact, “except for early signs of a movement in labor costs, inflation does not seem to be an issue,”In addition, Gregg says, the Fed has signaled that it wants to begin to take some of its dollars out of the economy. “Doing so should help control inflation. But there is a problem: There really does not seem to be any inflation to control,” he says.Something else is going on here, he says and concludes that this is a period of disruption across the economy, as well as in our culture. Radical transformations are underway, and “they affect everything from computing to communication to calling a cab.”And, he thinks that the disruption also has affected the drivers of inflation so the initial printing of exceptional sums of money did not drive inflation “because the colossal contraction generated by the financial meltdown absorbed it.” This means that “the waters we are in are uncharted,” he says.This means especially, he says, if the Fed wants to handle its balance sheet in a manner that allows the economy to deal with all the new dollars, it needs economic growth.In that case, “all these dollars do not need to be removed from the economy.” They need to be absorbed by the economy in a non-inflationary fashion. This can occur through an expansion, driven by this unique period of disruption.He recognizes that historically, an economy at full employment “that has excess dollars” is a recipe for uncontrolled inflation. But “history is being re-written by the unpredictable forces of disruption,” he says, and argues that for the foreseeable future, we seem to have moved into a “totally different economy, one that is full of technological forces that appear to be countercyclical to inflation.”He concedes that inflation may “rear its unwanted head again and that the Fed needs to be sensitive to that possibility.” But it should also take into account that the forces of disruption may take precedence over historic norms.He suggests that growth without inflation is possible for the foreseeable future. This means that “the Fed should wait a bit before it pushes down too hard on the pedal of historic economic theory. It is dealing with a very different time.”Well, we will see. There seems to be a lot of support for policies that undergird growth, but at the same time, these are deeply involved with politics. Gregg’s view is certainly timely and likely will receive considerable attention as the administration tax-reform proposals emerge, Washington Insider believes.
NAFTA Renegotiation Agreement Depends on Tax Reform, Agriculture
The fate of the North American Free Trade Agreement depends on U.S. tax reform and agriculture. That’s according to Former U.S. ambassador to Mexico Jim Jones, who told Politico that if tax reform passes, President Donald Trump will be “more interested in listening to reason” on NAFTA and other issues. Jones says: “Trump is less interested in substance than he is in political victories.” Following a decision on tax reform, Jones says agriculture groups will be critical in persuading the administration to stick with NAFTA, adding that pressure from farm groups will increase after the tax reform debate. He says that once tax reform is concluded, agriculture leadership would be “so outraged at the possibility of leaving NAFTA that there’s a good chance we’ll negotiate.” U.S. Trade Representative Robert Lighthizer and Senate Agriculture Committee Chairman Pat Roberts have both said agricultural trade would be critical to ensuring a successful NAFTA agreement.
Trade Lawyer Tells Companies to Prepare for no NAFTA
A trade lawyer in the U.S. says companies should start contingency planning amid trade uncertainty. Dan Ujczo (Yoot’-zoh), an international trade lawyer specializing in Canada-U.S. matters, told Canada's Globe and Mail newspaper that growing uncertainty over the future of the North American Free Trade Agreement means companies need to brace themselves, including for the possibility that President Donald Trump walks away from a deal. The trade expert says companies involved in trade, including agriculture, need to "understand this is very real," regarding the potential of no NAFTA agreement. In echoing his comments made a month ago, Ujczo said there are some practical matters to consider, such as looking at the supply chain to determine how exposed a business would become if some of the tougher proposals, such as stricter rules of origin for the materials used in auto manufacturing, come to pass.
Consumers See ‘Organic’ and ‘non-GM’ Food Labels as Synonymous
A study by Florida State University shows consumers regularly mix up food labels. Florida State University’s Institute of Food and Agricultural Sciences says consumers mix up foods labeled “organic” and “non-genetically modified” and some view the two labels as the same. A national survey of more than 1,000 consumers gauged their willingness to pay for food labeled genetically modified versus non-genetically modified. In the study, when consumers looked at packages of granola bars labeled "non-GMO Project," they were willing to spend 35 cents more than for the boxes that had text that read, "contains genetically engineered ingredients." With the "USDA Organic" label, consumers were willing to pay nine cents more. Meanwhile, consumers indicated they were willing to pay 35 cents more for apples labeled "non-GMO Project" and 40 cents more for apples labeled "USDA Organic." Organizers say the results led them to conclude that consumers don't distinguish definitions of the two food labels. For example, the researchers say it's possible that a product labeled, “Non-GMO Project Verified” more clearly communicates the absence of GM ingredients than a product labeled “USDA Organic.”
Insurer Suing ABC over BPI Settlement
AIG Specialty Insurance Co. is suing ABC News over its settlement with Beef Products Inc. regarding ABC's "pink slime" reports. AIG Specialty Insurance is one of the insurers for ABC's parent company, the Walk Disney Company. AIG is suing Disney over its insistence that its settlement with BPI, which cost Disney $177 million, after the amounts covered by insurance, is not, in fact, covered by its policy with AIG. Meat industry publication Meatingplace reports AIG said that its policy specifically excludes coverage for legal claims that allege “malice,” which BPI’s product defamation lawsuit did include. Court documents outline a series of meetings between AIG and Disney over the summer, seeking to hammer out an agreement. By filing a lawsuit, AIG is seeking to prevent Disney from pursuing coverage from the company through arbitration. The lawsuit was filed in the New York State court system.
Wheat Growers Association President Resigns for Potential FSA Appointment
The National Wheat Growers Association said Monday that association president David Schemm has resigned from his position to pursue other professional opportunities in his home state. The High Plains Journal says Schemm, a Sharon Springs, Kansas, wheat grower, has reportedly been tapped to accept the position of Kansas Farm Service Agency executive director. Wheat Growers CEO Chandler Goule (gool) said that as president, Schemm “helped move the wheat industry forward, grew its presence on Capitol Hill, and improved its relationship with the media and other farm organizations.” National Wheat Growers Association past president and Montana farmer Gordon Stoner has been chosen to assume duties and the role of president. Stoner will fulfill the role as president until the 2018 Commodity Classic, when the association will hold its next officer election, in Anaheim, California.
Drivers Surpass 2 Billion Miles on E15
Growth Energy says that in just five months, American drivers have surpassed another billion miles on E15, bringing the total miles driven across the U.S. to two billion. This comes on the heels of Growth Energy’s recent announcement that more than 1,000 stations across the country are currently offering E15 to consumers. Growth Energy CEO Emily Skor says the milestone “cements the fact that drivers have embraced” E15 fuels. E15 is approved for use in all vehicles 2001 and newer, as well as, all flex fuel vehicles, which combined represent more than 87 percent of the vehicles on the road. Meanwhile, more than 1,000 fuel stations around the country are offering E15—nearly triple the number of stations from the same time last year, and almost 16 million American adults have access to the fuel
Monday, October 30, 2017
National Farmers Organization Talks NAFTA
The National Farmers’ Organization took its turn to weigh in on the North American Free Trade Agreement negotiations. The Hagstrom Report says the NFO called on the Trump Administration to be “cautious” when it comes to the negotiations, noting that there would be substantial fallout for American farmers and ranchers if the agreement is terminated. Paul Olson, NFO President, says, “Canada and Mexico are two of the largest export markets for U.S. agriculture products, quadrupling since NAFTA began in 1994.” Olson stressed that revoking the agreement would be disastrous for commodity prices here in America. Mexico and Canada make up a significant share of American agricultural sales in commodities like corn, wheat, sorghum, red meat, and dairy products. Olson said National Farmers has long advocated for supply management in the U.S. However, he says farmers continue to produce more than the domestic market can use. Terminating NAFTA would not be good for the country’s job market, either. “Agriculture is not an isolated industry, either,” Olson says, “because our American farmers create jobs for others.”
NAFTA Notice Would Devastate Farm Economy
President Trump has been weighing the idea of giving notice that the U.S. intends to withdraw from the North American Free Trade Agreement as a way of taking a tough stance on the negotiations. Politico’s Morning Ag Report says even giving the notice would cause immediate harm. A group of 86 food and agriculture groups sent a letter to Commerce Secretary Wilbur Ross that says, “contracts would be canceled, sales would be lost, competitors would rush in to seize our export markets, and litigation would abound, well before withdrawal would actually take effect.” The groups contend that if a withdrawal notice is issued, that action would result in a loss of at least 50,000 jobs in the U.S. food and agriculture industry, as well as a $13 billion drop in GDP. Mexico has already said that a Trump message to Congress invoking NAFTA article 2205, which allows any country to walk away after six months, would mean Mexico pulling out of negotiations immediately. Canadian Prime Minister Trudeau would also face immediate pressure to leave negotiations as well.
EPA Releases Guidance on Air Emissions
The Environmental Protection Agency released guidance to help farmers report the release of hazardous air emissions from animal waste at their farms. Pork Business Dot Com says the EPA made the information available to aid farmers in preparing for the reporting deadline, which is November 15. EPA Administrator Scott Pruitt says his agency is working on addressing the undue regulatory burden on American farmers. “While we examine our options regarding reporting requirements for emissions from animal waste,” Pruitt says, “the guidance is intended to help farmers with current requirements.” It was back on April 11 that the D.C. Circuit Court vacated the rule that gave farmers exemptions from reporting air releases of hazardous materials from animal waste. Unless the Court allows further delays, all farms that have hazardous releases into the air from animal waste equal to, or greater than, the minimum reportable quantities of those materials in the same 24-hour period, must report those releases. The EPA guidance information, available on its website, includes resources to help farmers calculate emissions from each species of livestock.
Kansas Communities Expanding Pushback Against Tyson
There was a time when agriculture companies wanted to expand, with a promise of new jobs in potential new communities as a big incentive. However, a community opposition movement that’s very well-organized may make the Tyson Foods effort to build a new plant there much more difficult. Ag Fax Dot Com says Tyson canceled plans to build its first new facility in the U.S. in 20 years near Tonganoxie (tahn-geh-knocks’-ee). Tyson recently announced three new communities as finalists for the new facility. The finalists include Cloud and Montgomery counties, as well as the Greater Wichita region. Groups are still actively pushing back against Tyson. Don Stull, a retired professor from the University of Kansas, claims to have studied the impact of packing houses on communities since 1986. He feels people don’t really know about the issues in poultry production. Stull says some of the issues raised include Tyson’s environmental record and the harsh working conditions that come with these jobs. Tyson says the poultry complex in Kansas is on hold while they evaluate options, including looking at other states.
New Film Discusses GMO Misinformation
The maker of a film called Food Evolution, supported by the U.S. Farmers and Ranchers Alliance, says his documentary shows how easily misinformation can overwhelm objective analysis. Scott Hamilton Kennedy is an Academy Award-nominated filmmaker who produced the movie. Kennedy says the GMO story shows how important it is to use science to make decisions. “I was very honored that the film could defend scientists and farmers in a way that hadn’t been done in a long time,” he says. “It’s been a great honor to put those people on film and to see their responses to the film.” Food Evolution was commissioned by the Institute of Food Technologists and described as an independent investigation into biotechnology. Kennedy says the film is being criticized by a group of people he calls “fringe activists” who oppose all GMOs. However, he’s confident that the film is scientifically accurate. “We stand by the evidence in the film and the response to the film is validating that,” Kennedy adds. Food Evolution is currently available on the streaming service Hulu.
One Step Closer to Tax Cuts?
National Hog Farmer Dot com says the fiscal year 2018 budget proposed by Republicans and passed by Congress is a step forward toward possible tax cuts. Republicans will be able to use a procedural move that lets tax legislation be passed in the Senate with 50 votes. The goal of the Trump Administration and Republican leaders is to get the tax bill done by the end of the year. The fiscal year 2018 budget is estimated to increase the deficit by $1.5 trillion over the next decade. The 2018 budget won’t require any reductions in farm bill spending. The already-passed House version requires $10 billion in cuts over the next decade. The Senate budget didn’t include any required cuts. That’s good news as the House and Senate Ag Committees work on a new farm bill using the existing baseline. Funding is going to be a huge challenge in the farm bill as 37 expiring programs in the current farm bill don’t have funding beyond 2018. Some of the expiring programs deal with conservation, bioenergy, trade, rural development, and more. The committees will have to find new funding for the programs to continue.
Radical Environmental Groups File Suit aimed at U.S. Sheep Experiment Station
Last week, Western Watershed Project and Wildearth Guardians filed suit against the U.S. Forest Service challenging the service's authorization of domestic sheep grazing permits on the Snakey Canyon and Kelly Canyon allotments within the Caribou-Targhee National Forest. These allotments are permitted to the U.S. Sheep Experiment Station for research purposes. Citing the Payette decision and faulty risk analysis modeling, the radical environmental groups are also seeking an emergency temporary restraining order and preliminary injunction to prevent the use of these allotments on the intended start date of Nov. 6, 2017. Chase Adams, senior policy and information director for the American Sheep Industry Association, pointed out that this action relies on false science and a flawed interpretation of "species viability" under the Forest Planning Rule.
"This charge brought by Western Watersheds is a clear example of what happens when you try to litigate science," said Adams. "Their pleadings are false on their face, disease is not transmitted, and domestic sheep are not 'immune' to the pathogens that lead to die-offs. Yet, Western Watersheds and other radical groups continue to rely on flawed science to harass agriculture on all fronts. We know that the pathogens that lead to disease are endemic in bighorn sheep herds across the west. Further, under the most recent case law in Biodiversity Conservation Alliance v. Jiron, it is clear that the Forest Planning Rule gives the Forest Service great deference in managing the forest as a whole to achieve desired results."
The American Sheep Industry Association will continue to work to ensure grazing decisions on public lands are based on sound science and protect the critical research being done at the U.S. Sheep Experiment Station.
More information can be found on the ASI website at: http://www.sheepusa.org/Issues_AsiPositions.
"This charge brought by Western Watersheds is a clear example of what happens when you try to litigate science," said Adams. "Their pleadings are false on their face, disease is not transmitted, and domestic sheep are not 'immune' to the pathogens that lead to die-offs. Yet, Western Watersheds and other radical groups continue to rely on flawed science to harass agriculture on all fronts. We know that the pathogens that lead to disease are endemic in bighorn sheep herds across the west. Further, under the most recent case law in Biodiversity Conservation Alliance v. Jiron, it is clear that the Forest Planning Rule gives the Forest Service great deference in managing the forest as a whole to achieve desired results."
The American Sheep Industry Association will continue to work to ensure grazing decisions on public lands are based on sound science and protect the critical research being done at the U.S. Sheep Experiment Station.
More information can be found on the ASI website at: http://www.sheepusa.org/Issues_AsiPositions.
MONTANA STOCKGROWERS SEEKING APPLICANTS FOR LEADERSHIP SERIES
The Montana Stockgrowers Association (MSGA) is excited to announce the third year of a leadership program for young leaders in the ranching industry. The Stockgrowers Leadership Series is designed to provide training and skills to future leaders of Montana’s ranching communities. The 16-month class kicks off in January 2018 in Helena. Applications are due November 20.“We are excited to continue and expand the Leadership Series,” says Errol Rice, MSGA Executive Vice President. “Investing in leadership is a core strategy of MSGA’s long-range plan and our industry’s success will rely on our ability to develop a pipeline of leaders who are disciplined, well trained and inspired by the future of ranching.”The Leadership Series is a 16-month program where participants will take part in a number of workshops and sessions exposing them to different aspects of the ranching business today. These topics include policy work, banking and finance, management, business relationships, awareness of industry topics, media training, and beef consumer concerns.Program participants will also work with a designated leadership coach to build upon their strengths and skills. Sarah Bohnenkamp, former Executive Director for the Denver based, American National CattleWomen, will coach the class in a series of workshops, webinars and at-home tasks throughout the year. Bohnenkamp has more than 14 years’ experience with leadership development and is familiar with topics faced by the ranching industry, having trained youth for the National Beef Ambassador program for many years.The Leadership Series class will meet in several locations across Montana over the course of 16 months. Sessions will allow participants to travel on a summer ranch tour, network with industry leaders, gain valuable skills for their careers and be given further opportunities to be engaged in leadership positions upon completion of the course.Applicants for the Stockgrowers Leadership Series should be between the ages of 25 and 40, be involved in the Montana ranching industry and have a strong interest in improving their leadership and business skills.For more information, contact the Montana Stockgrowers Association at (406) 442-3420 or email Kori Anderson at kori@mtbeef.org. Applications are available at mtbeef.org/leadership-series. All submissions should be postmarked no later than November 20, 2017.
MONTANA BEEF COUNCIL WANTS TO INVEST $860,000 IN PROGRAMS
The Montana Beef Council would like to invest $860,000 into programs of beef promotion, education, consumer information, industry information, foreign marketing and producer communications in the fiscal year 2018, which began Oct. 1. Programs approved could be funded through Montana’s 50 cents in-state portion of the $1 per head beef checkoff, after Montana producers provide affirmative consent to Montana Beef Council to retain that portion of their assessment.In action concluding its Sept. 20-22 meeting in Billings, the MBC Board of Directors—all Montana volunteers, including members from nearly all segments of the beef supply chain—approved checkoff funding for a total of 26 demand-building and producer communication project funding requests for checkoff funding, in the fiscal year.“As always, the projects that the board reviewed this year have the potential to be very impactful and made for great discussion as we determined programs that best aligned with our strategic priorities and our potential funding ability,” said Jim Taber, Montana Beef Council president, a cow-calf producer and backgrounder from Shawmut, Mont. Jim Taber was elected at this meeting as president and Kiley Martinell, a cow-calf producer from Dell, Mont. was elected as vice president. The officer terms are two years in length.As a result of its deliberations, the board of directors preliminarily approved requests from 18 different organizations that will strive towards the mission of protecting and increasing demand for beef and beef products.The Fiscal Year 2018 Work Plan for the Montana Beef Council includes: · $30,023 for in-state education programs, including American Heart Association partnerships, children’s museum presence, health professional beef education, Team Beef athletes, classroom education, farm fairs, health professional pasture to plate tour and tradeshows across the state;· $45,500 for promotional programs, focusing on in-state tradeshows, consumer radio and digital advertising, barbecue cook-offs, a meat processor competition, a foodservice partnership and a targeted consumer event in the Northeast United States;· $16,250 for in-state beef safety and issues management comprised of the Montana Beef Quality Assurance program, as well as disseminating accurate information about the beef community to counter misinformation;· $30,510 for in-state producer communications, which includes producer outreach using digital and radio communication as well direct communications to producers about checkoff results;· $260,000 for domestic consumer marketing to continue consumer outreach, digital advertising, beef safety research, nutrition research, quality research, issues management, retail support, influencer engagement and foodservice support; and· $113,600 for foreign marketing and education in over 80 countries including Japan, China, Latin America and much more.Other anticipated expenses funded through the budget include $353,367 for administration, which includes office lease, insurance, equipment, office supplies, postage, telephone, Department of Livestock administration expenses, collection administration expenses, board expenses, travel for programs and producer communication and administrative staff compensation for program implementation. Checkoff collection remains mandatory, however, the above programs will only be carried out by Montana Beef Council after Montana producers complete and return the Producer Request to Retain Beef Checkoff Assessments Form. The form can be obtained at www.MontanaBeefCouncil.org or by calling the Montana Beef Council at (406) 656-3336.
Friday, October 27, 2017
House of Representatives on Thursday passed the fiscal year 2018 budget resolution that had earlier cleared the U.S. Senate
WASHINGTON (DTN) -- The House of Representatives on Thursday passed the fiscal year 2018 budget resolution that had earlier cleared the U.S. Senate, setting the stage for the Republicans to write a tax reform bill.The budget resolution will allow the Senate to consider a tax-reform bill without needing 60 votes in the Senate to end debate.The vote was 216-212. Twenty Republicans joined all 192 Democrats in voting against the resolution, giving the Republican leadership a margin of only four votes. Five members did not vote.The White House praised the action. A statement from Press Secretary Sarah Sanders said, "This resolution sets the stage for Congress to put America first by providing economic relief for the American people in the form of tax cuts and tax reform."The statement added, "President Trump has always made cutting taxes for hard-working American families, creating more jobs for American workers, and simplifying the rigged and burdensome tax code a priority, and he looks forward to further cooperation with Congress to advance the Administration's pro-growth and pro-jobs agenda."Some Republicans expressed reservations that the bill may increase the national debt and that tax reform may end the deduction for state and local taxes. House Budget Committee Chairwoman Diane Black, R-Tenn., defended the budget resolution, "I am proud that Congress agreed to a budget that reflects the shared priorities of both chambers and represents the golden key to unlock historic tax reform," Black said. "Through tax reform, we can put more money in the pockets of hardworking Americans, provide much-needed tax relief and create more jobs. By passing this budget, I am pleased we can begin the process of advancing tax reform and ultimately get legislation to the president's desk for his signature."But a spokesman for the Democratic Congressional Campaign Committee said, "With this budget, House Republicans are officially on the record supporting a middle-class tax increase -- something they'll be forced to defend repeatedly in the midterms.""Speaker [Paul] Ryan's [R-Wis.] foolish decision to force his most vulnerable members to walk the plank on a toxic tax increase for a huge group of hardworking Americans has further imperiled his majority."Farm leaders have expressed enthusiasm for tax reform, but are beginning to have reservations about current tax breaks that farmers might lose in the Republican attempt to reduce the corporate income tax rate.This week the National Council of Farmer Cooperatives expressed strong reservations about the provision in the Republican document "Unified Framework for Fixing our Broken Tax Code" that would eliminate the Section 199 deduction that is passed down by farmer co-ops to their member-owners.Section 199, also known as the Domestic Production Activities Deduction (DPAD), was enacted as part of the American Jobs Creation Act of 2004 and applies to proceeds from agricultural products that are manufactured, produced, grown, or extracted by farmer cooperatives, or that are marketed through co-ops, NCFC explained.If the provision is passed, NCFC said, "Money will flow from the pockets of farmers and rural communities to investment bankers on Wall Street and venture capitalists in Silicon Valley."The great majority of cooperatives pass the benefit through directly to their farmer-members, and it is estimated that the deduction returns nearly $2 billion annually to rural areas in all 50 states.Patricia Wolff, the tax adviser at the American Farm Bureau Federation, has spoken repeatedly of farmers' concerns about the tax bill. This week she told Financial Times that farmers want to hold on to the interest deduction because they rely heavily on debt to buy their land, finance equipment and purchase seeds and other raw materials.
NAFTA 2.0 Update
Top Trump administration officials have reportedly told Canada and Mexico there is "no give" on the part of the U.S. when it comes to negotiations, but veteran trade policy observers say this is yet another of the Trump team's negotiating tactics.Meanwhile, USDA Secretary Sonny Perdue in Indianapolis yesterday revealed he met this week with President Donald Trump, U.S. Trade Representative (USTR) Robert Lighthizer, Commerce Secretary Wilbur Ross and others for an update on NAFTA 2.0. Perdue said they believe "all three countries really want a deal at the end of the day." Like others, including Ross, Perdue said negotiations are still in the early stages and that most of the hard lifts in decisions will come in the waning days of talks.
Brazil Ag Ministry Seeking Duty-Free Quota for 750,000 Tonnes Of Wheat
A downturn in wheat production due to a combination of lower acreage and unfavorable weather is prompting Brazil's agriculture ministry to seek approval from the country's foreign trade chamber Camex for a duty-free import quota of 750,000 metric tons of wheat from outside the Mercosur trade bloc.One of the exporters eyeing the market is Russia, and the head of Brazil's food safety agency told Reuters a big hurdle is that the issue of a bilateral phytosanitary agreement between the two countries had been resolved. As for U.S. wheat, Brazil has ranked anywhere from fifteenth (2012/13) to second (2013/14) in terms of importers of U.S. wheat. They were the seventh largest buyer in 2016/17 with 1.207 million metric tons. Currently, export commitments to Brazil total 94,900 metric tons for 2017/18 (all shipped) compared to nearly 1 million metric tons at this point one-year ago which were mostly shipped.
Washington Insider: Agriculture and Politics
From the earliest days of this administration, the strong political support it received from rural voters has been emphasized by the media. Now, however, a number of reports focus on a somewhat different theme — rural disaffection. For example, Politico reported that “there is growing evidence that the U.S. withdrawal from the TPP is taking a sharp toll on rural America.”In addition, Politico notes that both Vice President Mike Pence and Agriculture Secretary Sonny Perdue were widely known as free traders before joining the administration but now are hard pressed, and even directly critical, as they defend the president’s desire for “beautiful” new trade deals to replace the TransPacific Partnership and his continued pressure on NAFTA.Bloomberg also reported this week that an intra-agency fight is forcing USDA to backtrack on its plan to move the Codex agency, which develops science-based international food safety standards, to a new trade and foreign affairs office.Agriculture Secretary Sonny Perdue notified Congress of the delay earlier this month in a letter to Senate Agriculture Committee Chairman Pat Roberts, R-Kan., The Secretary said the Codex move merits “further discussion given issues raised by stakeholders,” including 94 public comments in response to a Federal Register notice, feedback during meetings, and discussions with the administration.Why the administration, and USDA, decided the Codex move was a good idea is hard to fathom, a number of former administrators argued. The office, an interagency partnership that engages stakeholders in creating food standards, is currently housed in USDA's Food Safety and Inspection Service. The plan was to move it from FSIS to the newly created Trade and Foreign Agricultural Affairs office.The proposals received significant support from a variety of stakeholders, according to Perdue's letter, but some also “expressed concerns,” he said. The USDA realignment was a part of the plan to “improve coordination on trade and international activities.”The Food and Drug Administration opposed the move in a strongly worded letter that warned that “folding U.S. Codex under trade leadership could undermine the scientific credibility of U.S. delegations and U.S. positions at Codex.”The letter added that transfer of the U.S. Codex Office under a trade umbrella would build a perception that the United States “places a stronger priority on advancing trade over public health.”“The strength of the U.S. Codex efforts rests on its scientific efforts,” the letter said. “FDA is highly concerned that this would compromise the effectiveness of U.S. delegates who participate in Codex, a majority of whom are from FDA.”The letter lays out the strong relationship the FDA and the Codex office have had since the 1960s. It also said that a panel of the National Academy of Public Administration was assigned by Congress in fiscal 2015 to assess USDA reorganization, and it opposed moving the office. Perdue criticized the FDA letter during a public forum earlier this month, saying if the FDA made an intra-agency move he wouldn't “write the press and complain about it.” He said that, it's unfortunate that we didn't have the opportunity to discuss this with my [FDA] counterparts.”Well, it is unlikely that many of the rank-and-file ag supporters care much about exactly where the U.S. Codex office is located, but they certainly do care a lot about access to foreign markets, including Mexico and Canada and elsewhere—so the notice being given to the U.S. NAFTA discussions can be expected to have much more direct impacts on USDA’s day to day operations.Thus, the Secretary is widely expected to build administration support for global market access for U.S. products, and work against efforts that undercut access already gained—even though this may be difficult given the anti-trade inclinations of many current officials, Washington Insider believes.
Senate Confirms Ibach to USDA
The Senate Thursday afternoon confirmed Greg Ibach (eye-bah) to the Department of Agriculture. Senate Agriculture Committee Chairman Pat Roberts announced the approval of Ibach as the Under Secretary of Agriculture for Marketing and Regulatory Programs at USDA. Ibach previously served as the Nebraska Director of Agriculture. Agriculture Secretary Sonny Perdue welcomes the approval, saying Ibach “will bring experience and integrity to his new role at USDA.” The Senate Agriculture Committee held a hearing regarding Ibach’s nomination earlier this month. He was favorably reported out of the committee with a bipartisan voice vote and has the support of more than 60 farm and conservation organizations.
Congress Member Questions Trump’s Ability to Withdraw From NAFTA
Wisconsin Representative Ron Kind, a Democrat who represents a district of dairy farmers, is questioning President Donald Trump’s ability to withdraw from the North American Free Trade Agreement. Kind said this week: “Constitutionally, I think the president would be on pretty shaky grounds if he tries,” according to Politico. Congressman Kind made the comments during a speech to the National Foreign Trade Council. Kind said he believes any tariff changes would “have to come under Congress.” Kind represents Wisconsin’s Third Congressional District, which kind calls one of the most productive farming regions in the country. Kind was actively involved in calling on the administration earlier this year to address a dairy trade issue with Canada. Kind told U.S. Trade Representative Robert Lighthizer at the time that “it is important that leveling the playing field for Wisconsin dairy farmers be a top priority,” as part of the NAFTA renegotiations.
Dairy Industry Applauds Introduction of School Milk Nutrition Act
The nation’s dairy industry applauded the introduction of a bipartisan bill this week that would help reverse the decline of milk consumption in schools. The National Milk Producers Federation and the International Dairy Foods Association say the School Milk Nutrition Act of 2017 would make permanent the administrative changes in the school lunch program proposed earlier this year by the U.S. Department of Agriculture. The bill would allow schools to offer low-fat and fat-free milk, including flavored milk with no more than 150 calories per 8-ounce serving, to participants in the federal school lunch and breakfast programs. The bill allows individual schools and school districts to determine which milkfat varieties to offer their students. Agriculture Secretary Sonny Perdue, in one of his first official actions earlier this year, supported giving school districts the option to offer a variety of milk types as part of the National School Lunch and School Breakfast programs.
Conaway Supports House Guestworker Bill
House Agriculture Committee Chairman Mike Conaway offered his approval to a bill that would bring reforms to agriculture labor. Wednesday, the House Judiciary Committee approves the Ag Act, which supporters say would replace the flawed H-2A guestworker program. Conaway says the bill would help provide farmers with access to a legal, steady supply of workers. Saying, it’s time for a program that “respects our nation’s immigration laws and keeps American agriculture competitive,” Conaway says the bill “cuts red tape and institutes a flexible program that accounts for the different labor needs of various producers.” The bill was first introduced earlier this month by Virginia Republican Representative Bob Goodlatte [GOOD-lat] . At that time, more than 60 dairy groups penned a joint letter calling the bill a "significant, positive step forward." However, United Farm Workers and the AFL-CIO told Congress the bill would "create even more unfairness and dysfunction" in the immigration system.
More Soybeans Expected for 2018
Industry analysts are expecting U.S. farmers to plant more soybeans next year, up from this year’s record acreage of 88.7 million acres. Experts say farmers could plant anywhere from 86 to 90.5 million acres of soybeans in 2018, according to Farm Journal’s AgWeb. However, University of Illinois ag economist Todd Hubbs is warning against planting more soybeans next year. He says soybean acreage may need to decline in 2018 to generate a 2018-19 marketing year average farm price in the mid-$9.00 range to cover the cost of production. He recommends that farmers monitor soybean exports and demand before making 2018 planting decisions. Specifically, he says farmers should study the Department of Agriculture’s release of the Winter Wheat Seedings report for the first indication of farmer acreage decisions in early January.
Bloomberg Speculates Illegal Spraying Caused Dicamba Injuries
Illegal spraying seems to be the cause of a majority of crop damage earlier this year from dicamba-based herbicides. Given that BASF sold enough dicamba herbicide to cover roughly 52 percent of the dicamba-tolerant acres planted in Arkansas, Bloomberg speculates that a large quantity of off-label dicamba could have been used to fill the gap. Such versions of the herbicide can be highly volatile, meaning the chemical vaporizes and can easily move to neighboring fields. However, investigations continue as experts seek to find the specific causes of each complaint of spray drift. Arkansas’ State Plant Board received almost a thousand complaints alone this year. The amount of complaints prompted the Environmental Protection Agency to place to regulations for dicamba herbicides, including making the ingredient a restricted-use product.
USDA Offering $5 Million in Farm to School Grants
The Department of Agriculture is offering $5 million in grants to schools through the USDA Farm to School Program. The program has been awarding grants to schools and communities since 2013. Farm to School refers to efforts that bring locally or regionally produced foods into school cafeterias. USDA says that also includes hands-on learning activities such as school gardening, farm visits, and culinary classes, and the integration of food-related education into the regular, standards-based classroom curriculum. Schools, Native American tribes, farmers and other organizations may be eligible to apply for up to $100,000 for planning, implementing or training on farm to school programs. Applications are due by December 8th, 2017. Application information is available online at www.fns.usda.gov
Equine Infectious Anemia Confirmed in Gallatin County Horses
Helena, Mont. – The Montana Department of Livestock (MDOL) reports that multiple horses on a Gallatin County premises have been diagnosed with equine infectious anemia (EIA). EIA was last diagnosed in Montana in 2011 in Carbon County. Also known as swamp fever, EIA is a potentially fatal viral disease of equines spread by biting insects. No vaccine or treatment is available for the disease, which is characterized by fever, depression, progressive weakness, weight loss, edema (fluid under the skin or in body cavities) and anemia. Not all horses show signs of illness, however, these animals serve as carriers capable of transmitting the disease. The infected animals were discovered when they tested positive to a screening test required for equine movement into or out of the state. Otherwise known as a Coggins test, the preliminary results were confirmed by the USDA-APHIS National Veterinary Service Laboratories (NVSL) in Ames, Iowa. Follow-up testing on other equines located at the premises, which is currently under quarantine, is underway. Additionally, MDOL has contacted all horse owners within 200 yards of the affected herd regarding potential exposure and testing requirements. Due to strict regulations and no available treatment, owners of EIA-infected equines have few options. Infected horses can be placed under a lifetime quarantine with a minimum of 200 yards distance between the quarantined animal and other equines, euthanasia, or donating the animal for EIA-related research. The incidence of EIA has decreased since Coggins testing began in 1972, with approximately 50 cases of EIA diagnosed in the United States annually. Pockets of the disease continue to be found in populations with limited interstate movement which are rarely tested.
APHIS has issued a notice that Canada has updated its ID requirements for breeding cattle entering the country from the United States
The USDA’s Animal and Plant Health Inspection Service (APHIS) has issued a notice that Canada has updated its ID requirements for breeding cattle entering the country from the United States. Effective February 1, 2018, U.S. breeding cattle exported to Canada will need an 840 radio-frequency identification (RFID) tag and a USA tattoo in the right ear. The USDA metal tag will no longer be accepted as an option for identification of cattle for export to Canada.APHIS notes that U.S. regulations require special procedures for applying an 840 RFID tag to an animal already tagged with official identification. Veterinarians or exporters can refer to the IREGS website for further informationThe Canadian Food Inspection Agency has begun issuing import permits for breeding cattle to reflect these new requirements, according to APHIS. The protocols and certificates for breeding cattle are updated accordingly on the APHIS IREGS website and Veterinary Export Health Certificate System.This change is intended to reduce time during inspection at the Canadian border and eliminate the need for U.S. animals to be retagged with Canadian identification upon reaching their destination in Canada.
Thursday, October 26, 2017
Grassley Wants NAFTA Negotiations to Address High-Skilled Visas
The North American Free Trade Agreement's (NAFTA) high-skill visa program should be put on the negotiating table with an eye on better protecting U.S. workers, Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, said in a letter to U.S. Trade Representative (USTR) Robert Lighthizer.The nonimmigrant NAFTA professional (TN) visa program allows high-skilled Canadian or Mexican nationals to reside in the U.S. for three years, after which they can renew their status. There are around 60 categories of professions allowed in the TN visa program including doctors, lawyers, engineers and interior designers. Those categories and were "imported wholesale" from the U.S.-Canada agreement of the mid-1980s, Demetrios Papademetriou, a former head of immigration policy at the Department of Labor under President George H.W. Bush, told Bloomberg.Grassley argued the TN visa program offers an "uncapped and under-recognized pool of high skill employees" that he estimates could reach 100,000 workers in the U.S. These individuals "could negatively affect U.S. workers in certain industries that already rely heavily on foreign workers," Grassley wrote."Given President Trump's willingness to reevaluate – or reject – any and all of the NAFTA agreement, and in the interest of protecting American workers, I recommend that you specifically include temporary workers in the ongoing NAFTA review," Grassley urged. "I also ask that you consider whether the admittance of unlimited temporary workers under a multinational trade agreement – as opposed to through the existing statutory and regulatory frameworks employed by the Departments of State, Homeland Security, and Labor in other worker visa categories – best serves the interests of the American people and American workers."
Wyden Puts Hold On Some USTR Nominees over NAFTA
Sen. Ron Wyden, D-Ore., has put a hold on some nominees for positions at the Office of the U.S. Trade Representative (USTR) as he said that folks are in the dark about NAFTA negotiations. "It's my intention to not support moving from the committee any additional trade nominees until federal law is complied with and the summaries are actually updated," Wyden said at a hearing on Kevin McAleenan to head the U.S. Customs and Border Protection agency.The block would apply to two deputy positions at USTR – Dennis Shea to be U.S. ambassador to the World Trade Organization and C.J. Mahoney to be deputy USTR for China, Africa and the Western Hemisphere. The action, however, would not impact other trade nominees including McAleenan and those of Gregg Doud to be the USTR chief ag negotiator, Jason Kearns to be on the U.S. International Trade Commission and Jeffrey Gerrish to be a deputy USTR. Doud and Kearns were approved by voice votes by the panel Tuesday and Gerrish was approved on a 15-11 vote.
Washington Insider: Trade Frictions Grow
Politico is reporting this week that Japanese officials are expressing growing frustration with the Trump administration’s economic policies and are vowing to continue striking trade deals with other countries that undercut U.S. agricultural exports rather than seek new trade deals with the United States.The frustration comes both from President Donald Trump’s harsh rhetoric on trade and from his pullout from the 12-nation Trans-Pacific Partnership--which Japan still hopes can provide a bulwark against China’s growing influence in the Asia-Pacific region.Meanwhile, there is growing evidence that the U.S. withdrawal from the TPP is taking a sharp toll on rural America, Politico says. In August, the volume of U.S. sales of pork to Japan dropped by 9 percent year over year, a serious blow to farmers who had been preparing for a big increase in sales because of lower tariffs in the TPP.Instead, other countries that export meats, grains and fruits have seized on their advantage over American growers and producers in the wake of the U.S. pullout from the TPP.Politico also notes a new Reuters poll that shows Trump’s favorability in rural America — once a great stronghold — dropped from 55% last winter to 47% in September. The poll also showed a plunge in support for Trump’s trade agenda among rural voters.Both Vice President Mike Pence and Agriculture Secretary Sonny Perdue, who were widely known as free traders before joining the administration, have pointed to the president’s desire for “beautiful” new trade deals to replace the TPP.Perdue said this month that crafting a new deal with Japan was a top priority. And next week, Pence will meet with his Japanese counterpart as part of an effort to reboot the economic relationship between the two countries.Politico also reports that it has interviewed more than half a dozen senior Japanese officials who said they were uneasy with use of bilateral deals to replace the TPP, arguing that the goal of the multinational agreement was to create a wide international playing field.These officials said they are dismayed by Trump’s seeming inability to understand the importance of a multinational pact to establish U.S. leadership in the region and set the trade rules for nations on both sides of the Pacific Ocean as a counterweight to China’s rising influence.“Our prime minister has made it quite clear that we respect the U.S. decision, and that is our official position, but I think withdrawal from TPP is very wrong,” said one senior official. “Honestly, it has diminished many of things that the U.S. has achieved in the region.”In response, Japan has continued negotiating with American trade competitors, striking a political deal on a landmark free-trade agreement with the European Union in July while continuing to work toward closing a deal with the 11 remaining members of the TPP. Interviews with senior Japanese officials made clear their ultimate goal is to persuade the United States to rejoin the TPP, Politico says.There are some signs the Japanese strategy is working, Politico notes. Republicans in Congress, many of whom were TPP supporters, are expressing impatience with the administration and a conviction is growing that U.S. agricultural industries are suffering because of tensions unleashed by the TPP pullout."We cannot allow much more time to lapse in creating opportunities to have other agreements, and especially when you look at Japan," said Rep. Dave Reichert, R-Wash., chairman of the House Ways and Means Trade Subcommittee, as his panel wrapped up a hearing last week on trade opportunities in the Asia Pacific region.However, the President has shown no sign of reconsidering his earlier pullout from the TPP and recently told Forbes magazine, “I consider that a great accomplishment, stopping that. And there are many people that agree with me,” Trump said. “I like bilateral deals.”Ag secretary Perdue, who has often sought to counter Trump’s skepticism about free-trade agreements, raised the stakes with comments this month suggesting he shared a sense of urgency about getting a new deal in place.“We are eager to enter into bilateral trade negotiations with Japan and lower those barriers to address the preferences they seem to have currently for [rival agricultural producers] Australia, the EU, Chile, Mexico and other countries,” Perdue said at an international trade-association meeting. “We think our geopolitical relationship with Japan should lead to a preferred status in that way as well.”However, the Agriculture secretary has recently been commenting on growing frustration in the farm belt where producers expect to continue losing market share in meat exports to other countries, in spite of growing U.S. production and stocks. The main cause of this trend is seen as new, high import tariffs on the other side of the Pacific.Well, there clearly is a disconnect between at least some of the administration’s trade goals and those of many U.S. economic sectors, including much of agriculture. This is largely a behind-the-scenes fight now, but that could change dramatically if the administration moves to make major changes in NAFTA, or to take steps to reduce access to other key markets, especially in Asia, Washington Insider believes.
Bill to overhaul the country's agricultural guest-worker program advances out of the House Judiciary Committee
A bill to overhaul the country's agricultural guest-worker program advanced out of the House Judiciary Committee on Wednesday with just a one-vote margin after extensive debate about the impact of a new guest-worker program on farm jobs, but also on the meatpacking and logging industries.The Agricultural Guestworker Act drafted by Judiciary Committee Chairman Bob Goodlatte, R-Va., passed on a 17-16 vote. The bill would scrap the current H-2A temporary ag worker program and replace it with a new program, dubbed H-2C, that would allow farmers and other employers to bring in 410,000 foreign workers for farm jobs, as well as 40,000 foreign workers for meatpacking plants.The bill has the support of an array of agricultural groups, including the American Farm Bureau Federation, as well as groups representing dairy, cattle, pork, fruit and vegetable commodities, along with the meat-processing industry.Still, the immigration bill also has strong opposition from both sides of the political spectrum. Under the bill, the 450,000 visas would increase each year, meaning that within three years, the H-2C program could lead to 1.3 million foreign workers in farming and other related industries.Unlike H-2A, the bill would allow foreign workers to work in agricultural jobs to stay in the country for up to three years before requiring workers to return home. This would provide more stable labor for farmers, such as dairy producers, who need workers year-round.Ideally, current farmworkers living in the U.S. illegally would register under the H-2C program and become legal workers. However, Goodlatte modified his original bill and the new version does not offer any pathway for agricultural workers to receive green cards for permanent residency.The bill also makes a major shift in regulatory oversight of the guest-worker program by moving H-2C out of the Labor Department and into the U.S. Department of Agriculture. USDA would oversee the requests for workers by farmers and other companies, and the approval process. Other enforcement duties for the foreign workers and employers would remain under the Department of Homeland Security.The bill eliminates some of the onerous provisions of the current H-2A program that farmers have complained about for years. For instance, employers would not have to provide free housing or transportation to job sites. The bill also gets rid of the H-2A local prevailing wage rules, but would require employers to pay a minimum of $8.34 an hour for field workers. Those 40,000 visas for the meatpacking industry would have to pay a minimum of $10.88 an hour.At 450,000 possible guest workers, the new program would be nearly three times larger than the H-2A program this year. The Department of Labor shows 160,084 temporary H-2A ag jobs around the country were filled in the first nine months of Fiscal Year 2017, more than double the volume from just a few years ago. Georgia, North Carolina, Florida, Washington and California combined for just over 50% of the H-2A requests and positions filled.Democrats on the Judiciary Committee complained that the bill broadens the definition of agricultural labor to include jobs such as meat processing and logging. Democrats charged the new guest-worker program would effectively pull down the wages in those industries for American workers."We are actually in this bill making it easy to pay a very low amount per hour to foreign workers to come in and displace American workers in an area that has no shortage, where the pay is such you can achieve or aspire to a middle-class lifestyle," said Rep. Zoe Lofgren, D-Calif. "Why we would want to bring in hundreds of thousands of foreign workers to displace American workers is beyond me."Goodlatte disagreed with the notion the bill would undercut wages for American workers. Foreign workers would not agree to come into the U.S. to earn low wages. Those foreign workers also would be allowed to change jobs for better opportunities."The prevailing wage is going to be well, well above the minimum wage in almost every circumstance," Goodlatte said.Regarding poultry processing jobs, Rep. Doug Collins, R-Ga., said there is a chronic shortage of workers already in the industry."If we had everybody there and Americans filling these jobs, then this bill would not be necessary," Collins said. He later added, "I don't think the worry here is depressing wages. The wages will continue to be there because you are not going to lose workers, and we don't have that many folks coming in to take these jobs to start with."Farmers have increasingly struggled to find labor, especially since the federal government and states have tightened enforcement against undocumented workers. The California Farm Bureau released survey results last week stating that farmers and ranchers across the state were facing chronic hiring problems finding qualified and willing workers. Among farmers who hire seasonal employees, 69% stated they faced labor shortages. At the same time, only about 3% of farmers who responded to the survey used the current H-2A program."Even though more farmers have tried it, H-2A remains too cumbersome for most. Farmers in California and elsewhere in the country need an improved system to allow people to enter the U.S. legally to work on farms and ranches," said Paul Wenger, president of the California Farm Bureau.The Judiciary Committee was continuing debate late Wednesday on a related bill that would require all employers in the U.S. to use the E-Verify system when hiring workers.
GAO Climate Change Report Estimates Lost Crop Revenues
A report by the Government Accountability Office predicts climate change will cost U.S. agriculture up to $9.2 billion between 2020 and 2039 in lost crop yields. The report also details how extreme weather events, including wildfires, has cost the government $350 billion over the last decade, when including crop and flood insurance costs. In the long term, for 2080 through 2099, the annual sector-specific economic effects varied from a range of $12 billion in benefits to $53 billion in costs for the agriculture sector. The report was made available this week by the GAO. The report anticipates various regions of the U.S. will experience crop yield losses, increased road damage and changes in water supply and demand. The GOA says the report recommends the White House uses the information to help identify significant climate risks facing the federal government and craft appropriate federal responses.
Midwest Senators Introduce Farm Safety Net Fix
A bipartisan bill introduced this week seeks to strengthen and improve the Agriculture Risk Coverage-County Level program, which helps farmers when commodity prices fall to damaging levels. Introduced by North Dakota Democrat Heidi Heitkamp and Iowa Republican Joni Ernst, the bill aims to strengthen the safety net program in the next farm bill to “better support farmers” and make sure farmers “get the accurate payments they deserve.” The ARC county program provides revenue loss coverage at the county level when the actual county crop revenue of a covered commodity is less than the ARC guarantee. Senator Ernst of Iowa noted that some farmers have experienced payment discrepancies due to the program’s reliance on administrative county lines, rather than a farm’s actual physical location. The bill, the Senators say, would Improve data used to make the payments and calculate safety net payments, so they reflect what's owed to producers in the physical counties where their farms are located.
Farm Bankruptcy Relief Bill Sent to Trump
Legislation that would make it easier for family farmers to reorganize debts when facing bankruptcy received final approval this week, sending the measure to the president’s desk for signature. The bill was included as part of the supplemental appropriations package approved Tuesday in the Senate by a vote of 82-17. The measure would rectify a 2012 Supreme Court ruling on a previous bankruptcy reform law that ignored Congress’ goal of helping family farmers, according to sponsors of the legislation. The Family Farmer Bankruptcy Clarification Act of 2017 is sponsored by Senate Republican Chuck Grassley of Iowa and Democrat Al Franken of Minnesota. Franken said the bill is a “commonsense fix to ensure that the law functions as intended,” and that the bill would protect family farmers across the nation.
Agriculture Leading Commodity Trade Job Changes
Job changes in the commodities markets are led this year by agriculture, which makes up 43 percent of all job changes in the industry. Bloomberg reports that shrinking profits stemming from years of bumper harvest levels is reducing volatility and trading opportunities for major trade clearinghouses, forcing them to tighten their belts. At least 40 senior managers and executives in agriculture left their positions at clearinghouses such as Archer-Daniels-Midland and Louis Dreyfus this year, based on a count collected by Bloomberg. While in many cases the positions have been refilled, it represents an unprecedented changing of the guard. Specific reasons vary for the changes, but the moves come against a backdrop of tougher trading conditions. Bloomberg says the industry, which for a century has been dominated by ADM, Bunge, Cargill and Louis Dreyfus, has been forced to make wide-ranging changes. Firms have turned to asset sales, trading in niche markets or even processing meat to generate more cash. And, executives are putting more pressure on traders to deliver profits, and trade experts say that’s becoming harder to do.
Pennsylvania Governor Requesting RFS Waiver
Pennsylvania Governor Tom Wolf has sent a letter to President Donald Trump seeking a waiver for his state from the Renewable Fuel Standard. The Democrat sent Trump the letter last Friday, just as the administration was announcing it would direct the Environmental Protection Agency to abandon proposals that Midwest Senators said would weaken the RFS. DTN reports that Wolf wrote to Trump, saying: “The merchant refiners of the Northeast are not able to acquire enough RIN credits to meet their RFS obligations because they have limited blending capacity. Because of that, Wolf said the refiners must purchase RINs on the secondary market, where prices have increased significantly. If those refiners close, Wolf alleges that the refiners in the U.S. golf would have to increase capacity, and the move would lead to price spikes. However, Renewable Fuels Association President and CEO Bob Dinneen said that studies have shown merchant refiners recover the costs of RINs at the wholesale level. Also, he says there has been little evidence that RIN credit prices affect prices at the pump.
Egypt Issuing Wheat Import Guidelines to Tackle Trade Problems
Egypt plans to issue a streamlined guide on wheat import regulations for global traders. The guidelines will detail all specifications, procedures and regulations for traders selling to the world’s largest buyer, Egypt. The guidelines will be issued within the next two weeks. Reuters says Egypt is looking to calm nervous suppliers who have been adding high-risk premiums because of what they say are inconsistent import rules and erratic inspection procedures. Two wheat shipments were halted in recent months for containing poppy seeds, and dozens have been delayed for costly additional procedures. That followed a handful of stopped shipments of wheat last year due to a small amount of fungus found in testing by Egypt, amounts lower than the global standard threshold. Suppliers have said the high risks associated with selling to Egypt has led to premiums of up to $500,000 per shipment. With Egypt's state grain buyer expecting to import around seven million metric tons of wheat in the fiscal year that began in July, the premiums could add millions of dollars to the government’s food subsidy bill.
Wednesday, October 25, 2017
Agriculture Committees expected to make several changes to the Agricultural Risk Coverage program in the next farm bill
OMAHA (DTN) -- While it's widely expected that the House and Senate Agriculture Committees will make several changes to the Agricultural Risk Coverage program in the next farm bill, a pair of senators put down their bipartisan marker for adjusting the way ARC-County calculates county revenue. Sen. Joni Ernst, R-Iowa, and Sen. Heidi Heitkamp, D-N.D., introduced a bill Tuesday to shift the data used for ARC-County and change how payments are determined based on where a farm is physically located. Along with that, the senators want to give state Farm Service Agency committees more discretion to change county yields as well. The senators, both members of the Senate Agriculture Committee, stated their bill's goal is to strengthen ARC-County "to better support farmers during tough times like low commodity prices or drought and make sure they get the accurate payments they deserve." While the bill makes some changes to how yields are plugged into the ARC-County benchmark formula, the proposed changes by the two senators do not address the declining overall revenue protection under ARC-County. Declining market-year average prices over the past four years have eroded ARC-County's revenue protection. Among the changes in the bill, the senators want to require the Farm Service Agency to use crop-insurance yields reported by farmers and insurers to the Risk Management Agency as the first data used for yield calculations in ARC-County. Currently, FSA uses survey data from farmers reported to the National Agricultural Statistics Service as the first data of choice. NASS, however, has struggled with survey responses in at least some counties. Crop insurance data reported to RMA does provide more data points for calculating the average county yield. Still, one interesting twist in switching from NASS to RMA data is that it could reduce the likelihood of an ARC-County payment in some instances. Farmers generally report higher yield numbers to crop-insurance companies than farmers report on the NASS surveys. That's because insurance yields are used to determine a farmer's long-term Actual Production History for future crop insurance protection levels.
Mexico Continues to Seek Non-US Supplies of Some Products If NAFTA Fails
Mexico has some margin to compromise if the North American Free Trade Agreement (NAFTA) talks fail with the U.S. and Canada, according to Mexico's economy minister Ildefonso Guajardo, but he did not say what those areas of compromise were.Further, he continued to warn that Mexico would not just keep buying from the U.S. if the talks fail. "It is very simple: If today I am the top buyer of yellow corn, of fructose, rice, chicken, pork from the U.S., I need to open a space for trade with Brazil and Argentina so that at the table people realize that we have options," Guajardo said over the weekend at an event in the Mexican city of San Luis Potosi.Guajardo criticized the Trump administration’s focus on a loss of U.S. manufacturing jobs since NAFTA took effect in 1994. U.S. automotive production has soared thanks to productivity gains, and the nation has created millions more jobs in service industries than it lost in car production over the period, he remarked. "It appears that some governments aren’t noticing the transformations" in the global economy, he added.The U.S., Canada and Mexico wrapped up the fourth round of NAFTA talks in Washington last week and said negotiations will run through the end of March 2018, rather than the original goal of wrapping up talks this year. They also extended the time between negotiating rounds, giving themselves more space to consider proposals.Canada and Mexico have rejected what they say are unpalatable U.S. proposals on dairy, automotive content, dispute panels, government procurement and a sunset clause. Negotiators plan to meet next in Mexico November 17-21.US Commerce Sets Preliminary Antidumping Duties on Argentine, Indonesian Biodiesel
Affirmative preliminary determinations in antidumping duty (AD) investigations on imports of biodiesel from Argentina and Indonesia were announced late Monday by the U.S. Department of Commerce. The finding concludes that Argentine biodiesel was being sold into the U.S. market at dumping margins of 54.36% to 70.05% and Indonesian biodiesel was being sold at dumping margins of 50.71%.The decision gives the U.S. Customs and Border Protection (CBP) the means to collect cash deposits from importers of biodiesel from Argentina and Indonesia based on these preliminary rates. A statement from Commerce Secretary Wilbur Ross noted the U.S. and Argentina are in discussions on possible suspension agreements that could suspend the duties announced Monday and those announced in August. Argentina and Indonesia said they will contest the latest U.S. action.
Affirmative preliminary determinations in antidumping duty (AD) investigations on imports of biodiesel from Argentina and Indonesia were announced late Monday by the U.S. Department of Commerce. The finding concludes that Argentine biodiesel was being sold into the U.S. market at dumping margins of 54.36% to 70.05% and Indonesian biodiesel was being sold at dumping margins of 50.71%.The decision gives the U.S. Customs and Border Protection (CBP) the means to collect cash deposits from importers of biodiesel from Argentina and Indonesia based on these preliminary rates. A statement from Commerce Secretary Wilbur Ross noted the U.S. and Argentina are in discussions on possible suspension agreements that could suspend the duties announced Monday and those announced in August. Argentina and Indonesia said they will contest the latest U.S. action.
Senate Committee Advances Chief Ag Negotiator Nominee
The Senate Finance Committee Tuesday advanced the nomination of Greg Doud (Dowd) as chief agriculture negotiator to the full Senate. The move puts Doud closer to the North American Free Trade Agreement negotiations, with one vote remaining until he can take his post at the U.S. Trade Representative’s office. Chairman Orrin Hatch of Utah says of the Trump Administration that it is “essential that his administration is well-staffed and ready to get to work,” on trade in urging the Senate to act quickly to confirm Doud. Last week, Senate Agriculture Committee Chairman Pat Roberts said Doud needs to be at the negotiating table to represent U.S. agriculture as part of the NAFTA talks. Roberts and the White House agreed that agriculture exports are key to addressing the U.S. trade deficit as part of the NAFTA talks.
Korea Sends KORUS Analysis, Says No to Opening Ag Trade
A review of the U.S.-Korea Free Trade Agreement by South Korea claims to show little basis to support the U.S. desire for renegotiation. A South Korea-based newspaper reports that Korea submitted an analysis to Washington, D.C. showing that preferential U.S. duties as part of KORUS had almost no direct effect on the increase in South Korean exports to the U.S. over the past five years. The findings indicate that the effects of preferential duties were not statistically significant for 11 of the items, including automobiles, steel, general machinery, and agriculture products. The report follows an announcement by South Korea last week saying the renegotiation will have to focus on other areas instead of agriculture. Korea's Trade Minister said South Korea would "consider all possibilities, including no deal being reached." He also reported that the demands by the U.S. for additional openness in the agricultural sector are something “completely unacceptable.”
National Council of Farmer Cooperatives Lists Farm Bill Priorities
The National Council of Farmer Cooperatives is urging Congress to finish the next farm bill on time. In releasing the organization's farm bill priorities Tuesday, President and CEO Chuck Conner noted the “challenging price environment” farmers are dealing with in explaining the need for a timely farm bill. The council’s framework outlines eight general principles to be included in the next farm bill, including a focus on promoting farm cooperatives and “their abilities to enhance competition in the agricultural marketplace by acting as bargaining agents” for cooperative members. The organization also calls for the expansion of all U.S. agriculture exports, support for a strong safety net and an assurance that farmers and ranchers will have access to needed labor. The National Council of Farmer Cooperatives has supported farmer cooperatives since 1929 and represents more than 2,000 local farmer cooperatives throughout the nation.
NCGA Offers Reminder on Dicamba Label Changes
The National Corn Growers Association is urging farmers to be aware of the label changes for dicamba herbicides next year. NCGA says farmers interested in using dicamba as part of their crop strategy in the 2018 growing season need to be aware only certified applicators, or those under direct supervision, will be allowed to apply the product. The Environmental Protection Agency recently classified dicamba as restricted use, among placing further restrictions and regulations on the use of dicamba herbicides. The label change reflects an agreement between the EPA, Monsanto, BASF and DuPont on measures to further minimize the potential for drift to damage neighboring crops from the use of dicamba herbicides. The new restrictions include the need for special training to apply dicamba, limiting applications to when maximum wind speeds are below 10 miles per hour, and a requirement for farmers to maintain specific records regarding the use of dicamba products to ensure compliance with label restrictions.
Nestle Leaving Grocery Manufacturers Association
Nestle Foods announced it would leave the Grocery Manufacturers Association trade group by the end of the year, following the heels of Campbell Soup Company. Politico reports that Nestle has been at odds with GMA on some of the most high-profile food issues in Washington, D.C. in recent years. Nestle was one of a handful of companies that backed labeling for added sugars and supported voluntary efforts for food companies to cut back on sodium, both issues GMA lobbied against. Nestle officials also were unhappy with GMA’s opposition to GMO Labeling. Association spokesperson Roger Lower told Politico the group was “disappointed” by the move. However, he noted that: “Companies decide to join and leave trade associations for a variety of reasons over time.” Campbell Soup Company announced it would leave the trade group in July, in part due to differences in opinion on GMO labeling.
Plant-Based Foods Increasing in Popularity
The use and popularity of plant-based foods is increasing, but that doesn’t mean a change in course for the world population. A recent survey by the restaurant food delivery service GrubHub reported that vegan orders have increased in popularity by 19 percent in 2017. However, the number of vegan or vegetarian consumers has remained around five percent of the world’s population. Meat industry publication Meatingplace says the statistics simply reflect a trend of meat-eaters choosing to vary their diets more with an increasing array of non-meat options. Meatingplace also points out that not all vegans or vegetarians stick with the diet. The United Kingdom’s Daily Caller recently asked vegetarians why they went back to eating meat. The ex-vegetarians said they “couldn’t deny the cravings,” and one said: “I dreamed of cheeseburgers.” The most common reason though was from mothers who said they wanted to ensure a healthy pregnancy.
Cattle feeders earned an average of $17 per head on cattle shipped to market last week
Cattle feeders earned an average of $17 per head on cattle shipped to market last week, a gain of about $7 per head from the previous week. Cash cattle markets held relatively steady at $111 per cwt., while total costs of feeding a steer dipped $37 per head, according to the Sterling Beef Profit Tracker.Beef packers saw their margins slip $6 per head, but held on to very strong positive margins of $158 per head. Last week’s beef cutout price was $197, up $1 from the previous week.Break even prices for steers sold last week averaged $109.68 per cwt., also steady with the previous week. However, cattle placed on feed last week have a projected breakeven of $115.47 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.The cost of finishing a steer last week was calculated at $1,527 per head, which is $37 less than the $1,564 a year ago. A month ago cattle feeders were earning $27 per head, while a year ago losses were calculated at $199 per head. Feeder cattle represent 74% of the cost of finishing a steer, compared to 74% last year.Farrow-to-finish pork producers earned an average of $11 per head last week, with lean carcass prices at $64.39, fully $4 higher than the previous week. A year ago pork producers lost an average of $39 per head. Pork packer margins totaled $13 per head last week, about $12 per head lower than the previous week.Cash prices for fed cattle are $13 higher than the same week a year ago. Lean hog prices are about $16 per cwt. higher than last year.Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2017 will average $131 per cow. That would be $46 per head less than the estimated average profit of $177 for 2016. Estimated average cow-calf margins were $438 per cow in 2015.For feedyards, Nalivka projects an average profit of $210 per head in 2017, which compares favorably with average losses of $4.25 per head in 2016. Nalivka expects packer margins to average about $120 per head in 2017, up from $114 in 2016.For farrow-to-finish pork producers, Nalivka projects 2017 profit margins to average $15 per head, compared to $5 per head last year. Pork packers are projected to earn $26 per head in 2017, up slightly from $24 profit per head in 2016.
Tuesday, October 24, 2017
Two followers of renegade Nevada rancher plead guilty over armed standoff
(Reuters) - Two supporters of renegade Nevada rancher Cliven Bundy each pleaded guilty on Monday to obstructing a U.S. court order for their role in a 2014 showdown between armed militia members and federal agents who had seized Bundy’s cattle.
Eric J. Parker, 34, and O. Scott Drexler, 47, both from Idaho,
each faces up to a year in federal prison and a $100,000 fine for taking part
in the standoff, which became a rallying cry for right-wing extremists
challenging U.S. government authority in the American West.
Both defendants
are scheduled to be sentenced on Feb. 2, 2018, federal prosecutors in Las Vegas
said in a statement announcing the guilty pleas.
The
two men, accused of threatening law enforcement officers with guns, were
originally tried on several more serious charges for which they faced at least
57 years in prison if convicted.
Defense
lawyers argued that the two men, along with four co-defendants, were exercising
constitutionally protected rights to assembly and to bear arms, casting the
showdown as a patriotic act of civil disobedience against government
over-reach.
Although
two of the six defendants were convicted, four others, including Parker and
Drexler, won a mistrial in April when jurors failed to reach a unanimous
verdict in the case against them.
A
retrial in August ended with the jury finding Parker and Drexler not guilty on
most of the charges, but deadlocked on other counts. Rather than seek another
retrial, prosecutors negotiated a deal with Parker and Drexler to settle the
unresolved charges.
The
pair ended up pleading guilty to one count each of obstructing the federal
court order that had led U.S. officers to seize 400 of Bundy’s cattle after he
refused to pay the required fees to graze his livestock on public lands.
Parker
and Drexler were among hundreds of supporters, many of them armed, who rallied
to Bundy’s cause. Outgunned federal agents retreated rather than risk bloodshed
in the ensuing standoff near Bunkerville, Nevada, and Bundy’s followers
prevailed in recovering his herd.
But Bundy and
others who participated in the confrontation, including four of his sons, were
later charged with conspiracy, assault and other offenses. The elder Bundy,
sons Ammon and Ryan Bundy, and a third supporter face trial next week.
The two Bundy
brothers and five other people were acquitted in a separate federal court trial
in Portland last October of conspiracy charges stemming from an armed takeover
of a U.S. wildlife center in Oregon in 2016.
Sierra Club Sues EPA for Overdue RFS Environmental Impact Study
The Environmental Protection Agency (EPA) is almost four years past a deadline for its study of the environmental impact of the Renewable Fuel Standard (RFS). Lawmakers need that information to assess the program’s effectiveness or make needed changes, the Sierra Club said in a lawsuit aimed at compelling the agency to complete the study."EPA’s failure to analyze and address the impacts of the agency’s annual standards, which have drastically increased biofuel volumes in our nation’s fuel mix, has led to unchecked land conversion," the club said in a statement. "Approximately 40% of the U.S. corn crop is diverted to biorefineries for fuel production, up from nine percent in 2001," with the associated runoff causing algae blooms in the Great Lakes and a dead zone in the Gulf of Mexico."What Administrator Pruitt said in his confirmation hearing still stands: he doesn’t want to take any steps to undermine the objectives in the statute of the RFS," EPA spokeswoman Liz Bowman said. "We continue to work with RFS stakeholders to ensure EPA is applying the statute."
Japanese Editorial Calls For Hardline Stance on Potential US Trade Talks
A high-profile editorial in one of Japan’s major national newspapers on Friday called on its government to stand firm against what it views as the United States’ “protectionist” trade strategy, one that it says has been on display in the U.S. handling of the NAFTA and KORUS renegotiations.Following recent discussions between Vice President Pence and Japanese trade officials, and ahead of President Trump’s visit to Japan next month, the editorial advocated against making any concessions beyond what was on the table when the Trans-Pacific Partnership (TPP) agreement was negotiated. It also called for Japan to remain focused on advancing TPP-11 and its pending agreement with the European Union as the best way to compel the U.S. into a fair bilateral trade negotiation and a possible re-evaluation of its stance against multi-lateral trade agreements.
Canada “Extremely Worried” About NAFTA Direction
Canada is “extremely worried” behind the scenes regarding the North American Free Trade Agreement negotiations. News network CTV of Canada reports the latest round of negotiations has caused concerns. The U.S. has since tabled a measure to dismantle Canada’s dairy supply management system, but the issue is likely to come up again. Canada refuses to make changes to the system, while the U.S. dairy industry is supporting the proposal. However, dairy is one a several U.S. proposals Canada calls “unreasonable.” A Canada NAFTA Advisory Council member says more people are saying “it looks like the Americans are driving towards a cliff on this, and Canada will have to follow.” Trade officials from Canada say the U.S. has set the stage for the nation to either pull out or get the "America first" agreement, which “doesn’t put Canada in a very good spot.” The negotiations will continue next month in Mexico.
Coalition Calls for Double the Funding for USDA Research
More than 60 farm and commodity groups are calling for lawmakers to double the funding for agriculture research in the next farm bill. The coalition of 63 organizations sent a letter to House and Senate agriculture leaders, requesting the lawmakers increase the Department of Agriculture’s research, education and extension budget to $6 billion over the life of the next farm bill. The letter shows China has doubled its commitments to agricultural research. American Soybean Association President Richard Wilkins, whose organization is part of the coalition, said: “We need to regain and maintain our nation’s place as the international leader.” Coalition members range from conventional agricultural groups to those that often question large-scale, industrial agriculture, and their letter outlines ten specific policy recommendations, according to the Hagstrom Report.
Canada Won’t Place Further Restrictions on Dicamba
Canada will not follow a move by the U.S. to place further restrictions on dicamba herbicides. Health Canada, responsible for regulations of herbicides, says it supports the current Canadian labels for dicamba. The U.S. Environmental Protection Agency recently increased restrictions on the use of dicamba sprayed over crops, after the first season of use for dicamba-resistant soybeans turned up about three million acres with crop damage. However, as AgCanada reports, there appeared to be a much lower level of damage in Canada. In a statement, Health Canada said it was aware of the dicamba drift challenges in the U.S., but says Canada has already mandated that labels of dicamba products include spray drift precautions, use directions and buffer zones. The U.S. made dicamba herbicides for crop use restricted products, meaning applicators must be certified and follow a specific set of regulations, including what time, and under what conditions dicamba can be applied.
Reuters Says WHO Glyphosate Report Full of Lies
A new report by Reuters says the World Health Organization purposefully distorted it’s finding on glyphosate, resulting in the United Nations claiming the weed killer is a carcinogen. Reuters examined documents from the International Agency for Research on Cancer’s assessment of glyphosate, a report that has prompted international disputes and lawsuits. The examination found key sections of the report by the WHO underwent significant changes and deletions before the report was finalized and made public. Analysts say: “In one instance, a fresh statistical analysis was inserted - effectively reversing the original finding.” A draft of the report reviewed by Reuters in a comparison with the published report showed the removal of multiple scientists' conclusions that their studies had found no link between glyphosate and cancer in laboratory animals. A Monsanto spokesperson, whose flagship product RoundUp uses glyphosate as a primary ingredient, told Reuters the changes to the draft shows how the WHO “manipulated and distorted scientific data.”
U.S. Milk Production Slows Increase Level
U.S. milk production increased last month, but at a slower pace than seen earlier this year. The Department of Agriculture’s monthly Milk Production Report found September milk production was up just 1.1 percent, the smallest increase all year if you ignore February, according to the website Milk Business. February 2016 was a leap year, so this year’s February milk production was reported to be down 1.3 percent, but on a daily basis was actually up two percent. Estimated U.S. cow numbers also dipped slightly in September, down 4,000 head, but remain at 9.4 million. This is the fifth consecutive month of cow numbers at or above the 9.4 million level. California again reported a drop in milk production, down 3.4 percent. Meanwhile, four states reported milk production up at least five percent. Texas reported a ten percent increase, while Colorado milk production was up 7.4 percent. An increase of 6.9 percent was reported in Utah, and a 5.2 percent was reported in Kansas.
USDA Offers Help to California Agriculture
The U.S. Department of Agriculture has set aside $4 million to help farmers and ranchers impacted by the California wildfires recover. USDA also announced Monday that households impacted by recent wildfires in Northern California could be eligible for help buying food through USDA’s Disaster Supplemental Nutrition Assistance Program. USDA’s Natural Resources Conservation Service, or NRCS, will issue waivers for those interested in the Environmental Quality Incentives Program to enable recovery work to begin immediately. Meanwhile, the Farm Service Agency and Risk Management Agency in California will meet farmers and landowners to assess damages and discuss technical and financial assistance. USDA says the Farm Service agency can help farmers and ranchers with a range of disaster assistance including compensation for livestock death and feed losses, risk coverage for specialty crops, and repair of damage to agricultural and private forest land. The wildfires have impacted seven counties in California’s wine country.
Perdue has notified Congress that he will take more time to consider shifting the Codex food safety office
Secretary of Agriculture Sonny Perdue has notified Congress that he will take more time to consider shifting the Codex food safety office to the agency’s trade arm as part of a planned reorganization.The reorganization would have transferred oversight of the Codex Office to USDA’s Foreign Agricultural Affairs division from the Food Safety Inspection Service (FSIS). Codex manages the nation’s participation in the Codex Alimentarius Commission (CAC), which sets worldwide standards for food safety covering more than 180 nations. The CAC also works with the United Nations’ Food and Agriculture Organization and the World Health Organization (WHO) by helping to resolve trade disputes under the World Trade Organization (WTO).Critics – including the U.S. Food and Drug Administration (FDA) and former USDA undersecretary of agriculture for food safety and Meatingplace blogger Dr. Richard Raymond – contend that the shift might result in more focus on trade issues rather than food safety. FDA also sent USDA a letter earlier this month endorsing the 2015 findings by the National Academy of Public Administration to assess options regarding any USDA reorganization. The FDA agreed that moving Codex under trade leadership “could undermine the scientific credibility of U.S. delegations and U.S. positions at Codex.”Sec. Perdue and the Trump administration said the Codex Office move could enhance the Trade Office’s global status. In a letter to Congress, Perdue contended that the overall reception to the reorganization has been positive, but he recognized that there have been concerns expressed by “some stakeholders.”In the letter to U.S. Sen. Pat Roberts, chairman of the committee on agriculture, nutrition and forestry, Sec. Perdue said the Codex Office move and the proposed merger of GIPSA and the Agricultural Marketing Service (AMS) “merit further discussion given (the) issues raised by stakeholders.”The letter – emailed to Meatingplace by USDA’s communications office – did not specify a timetable for making further determinations on either the Codex or GIPSA issues.
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