Trump Administration Self-Initiates Aluminum Investigations

The Trump administration launched a pair of investigations that could lead to import duties of aluminum sheet valued at more than $600 million, the first time in at least 25 years a U.S. administration has "self-initiated" an antidumping or countervailing duty case.While working with the aluminum industry to develop the case, Ross said Commerce is initiating the investigations, which could take up to a year. Then, the U.S. International Trade Commission will have to determine if U.S. producers have been materially injured or threatened with material injury by the imports."In this case, available evidence indicates that Chinese producers are selling aluminum sheet in the United States at prices that are less than fair value and that the Chinese government is providing unfair subsidies to producers of aluminum sheet," Commerce Secretary Wilbur Ross said. The efforts announced Tuesday are in addition to two other investigations – one on aluminum imports from China and a broader Section 232 probe.

Canada Heads to WTO over Softwood Lumber Import Duties Proposed By US

Canada has requested consultation at the WTO with the U.S. over import duties imposed by the U.S. on softwood lumber from Canada."We are reviewing the consultations request," U.S. Trade Representative spokeswoman Amelia Breinig said in a statement. "We are confident that the Department of Commerce's determinations fully comply with WTO rules." She noted the action by Canada is "premature" since the duties are not in place yet and are awaiting a final injury determination by the U.S. International Trade Commission December 18.The proposed anti-subsidy duties range from 3.2% to 8.89%, and countervailing duties range from 3.34% to 18.19%.

Washington Insider: War Over Tax Proposal Details

The fog of the political budget war continues to thicken, the Washington Post reported Wednesday. It said that “outside groups on the right are furiously mobilizing against an agreement that Republican leaders made with Bob Corker, R-Tenn., yesterday to get the tax bill through the Senate Budget Committee.”Apparently, Corker negotiated a deal in September that the tax cuts “cannot increase the national debt by more than $1.5 trillion over the next 10 years.” But, now he’s concerned about various gimmicks and overly rosy assumptions in the bill “that would almost certainly mean the true impact on the debt is far greater than that.”So, the retiring senator has been pushing in recent days to include a “trigger” that would automatically increase taxes down the road if the bill fails to generate the level of economic growth that Republicans leaders keep publicly predicting. This, it seems, has led to all sorts of angst.In addition, the Post says “it’s not clear what exactly GOP leaders promised Corker, who declined to share specifics with reporters.” He said the amendment will be included in an updated version of the bill that is likely to be released publicly on Thursday.This has led to something of a political explosion. The constellation of groups funded by the billionaire industrialist Koch brothers – including Americans for Prosperity and Freedom Partners – came out strongly against any trigger Wednesday last night, and were joined by Grover Norquist from Americans for Tax Reform, the Wall Street Journal editorial board and the U.S. Chamber of Commerce.These groups argue that such a trigger would likely increase taxes during an economic downturn—with strong negative impacts, and which they fear would cause stagnation. They also complain that it would inject even more uncertainty into the tax system, which would make it harder for businesses to plan their long-term investments.Corker asked President Trump about a trigger during a private lunch Wednesday for Senate Republicans—and, the president replied that he does not like the idea “but will accept it if that’s the only way a bill can pass,” the Post said. “There’s agreement in principle, very strong agreement, with Sen. McConnell, R-Ky., with the Finance Committee — and of course the White House has been in the midst of all this, too — but the agreement was made with McConnell and the Finance Committee leadership,” Corker said later in the day.In addition to Corker, the compromise is being crafted to win over other on-the-fence Republicans like Sens. James Lankford of Oklahoma, Jeff Flake of Arizona and Jerry Moran Kansas.With no Democrat planning to vote for the measure, Republicans can only afford two defections when they bring the bill up later this week for a vote on the floor.This new flash point in the delicate negotiations draws attention to the deeper identity crisis for the GOP in the Age of Trump, The Post says. For example, the President, who has declared bankruptcy several times, has made clear that he’s not a fiscal conservative. And Congressional Republicans, when they last had unified control of the federal government under George W. Bush, spent heavily, as vice president, Dick Cheney reportedly declared that Ronald “Reagan proved deficits don’t matter.”The tea party movement that emerged after Republicans lost power during the 2008 financial crisis put a heavy emphasis on tackling the debt, and conservatives running for office chastised the establishment GOP for its lack of fiscal restraint. Many current members of Congress got elected promising they wouldn’t repeat those same mistakes.But once they got power over the purse strings, especially after President Trump took over their party, the tone of most elected Republicans changed once again, The Post says. Meanwhile, the national debt exceeded $20 trillion for the first time ever this fall.Despite this rift, The Post says, the sense in the Capitol now is that there is real momentum toward getting this done. Sen. Susan Collins R-Maine, appeared ready to fall in line after a private meeting with the President yesterday.Still, a challenge remains for Senate GOP leaders, who have two holdout members who want to make the tax cuts more generous, but another half dozen or so Republicans who are still uneasy about potential additions to the debt. These contradictory demands complicate negotiations and will force Senator McConnell to decide who he needs to placate most.It’s not clear for example that he’ll be able to win over Sen. Ron Johnson, R-Wis., who wants to give “pass-through” businesses the same benefits as large corporations—which would increase the cost of the bill by more than $100 billion. Sen. Steve Daines, R-Mont., also wants this change, but he may agree to vote for the bill with a compromise that costs less.So, we will see. Everybody hates taxes and loves tax breaks, but some also really, really hate debt. This will mean still more hard, complicated choices that should be watched closely as the debate proceeds, Washington Insider believes.

Cash receipts in the livestock sector are forecast to grow 7.6%

OMAHA (DTN) -- Cash receipts in the livestock sector are forecast to grow 7.6% for all of 2017 while receipts for crop producers are projected to fall 2%, according to USDA's latest farm income forecast released Wednesday.Overall, net farm income is stabilizing and expected to provide a small bump in 2017 to $63.2 billion, or a 2.7% increase over 2016 numbers. The increase in the overall farm sector comes after three consecutive years of declines.Still, when factoring in inflation, the net farm income -- a broad measure of farm profits -- is relatively unchanged from a year ago.The farm income figures released Wednesday show a slightly better picture looking at "net cash farm income." That measure increased $3.7 billion, or 3.9%, to $96.9 billion. Taking inflation adjustments into account, net cash farm income rose 2.1%.USDA designates "net cash farm income" as a measure counting cash receipts from sales of crop inventories at the beginning of the year. The net cash farm income counts those as current-year income. The "net farm income" measure counts the sales of those beginning-of-the-year inventories as part of prior-year income.Even though both income measures are rising, net farm income in 2017 is still below all years from 2009 to 2015, and net cash farm income is lower in 2017 than the stretch of years from 2011 to 2015.The median household income for farms in 2017 is $77,551, showing an increase of 1.7% for the year after falling 6% in 2015 and remaining flat last year. That was largely due to a 2.3% increase in off-farm income to an average of $67,973 for 2017. Median farm income remains in negative territory at -$1,093 as more than half of farms lost income on their farm operations.While income remained low, comparatively, from seven or eight years ago, farm asset values increased by $81.1 billion, or 2.7%, to $3 trillion in 2017. Farm debt rose 2.9% to $385.2 billion. Nationally, farm equity, a measure of assets to debt, is up $70.1 billion, or 2.7%, to $2.65 trillion in 2017. The increase in assets is attributed to a 3.3% increase in the value of farm real estate. Subsequently, the rise in farm debt is also tied to higher farm real-estate debt.All cash receipts in agriculture are projected at $365.1 billion for 2017, an $8.6 billion increase, or 2.4% higher than 2017. The main driver for higher cash receipts was a $12.4 billion bump in revenue from the livestock sectors. Dairy, poultry-eggs, hogs and cattle receipts all increased in 2017, USDA stated. That was reflected in both price and volumes sold.Cash receipts for crops fell for crops by $3.8 billion, or 2%, to $189.9 billion. The main drivers were declines in receipts for soybeans, as well as the fruit and nut sectors.Despite declines in crop cash receipts, farm program payments are projected to decline $1.8 billion as well, to $11.2 billion, as large declines in Agricultural Risk Coverage (ARC) payments more than offset increases in Price Loss Coverage (PLC) payments, USDA stated.Total production expenses for agriculture are up 1.5% after two years of declines to $355.8 billion. Higher costs were led by higher interest costs, hired labor and fuels-oil. USDA saw declines in prices for feed and fertilizer expenses. 

Montana Farm Bureau submits comments on Sage Grouse Land Management Plan

The Montana Farm Bureau has submitted comments to the Department of the Interior regarding the Bureau of Land Management’s Greater Sage Grouse Land Management Plan. The state’s largest agricultural organization encouraged the DOI to make several improvements to the plan in order to make it more workable for multiple-use lands.The comments highlighted issues in the plan that need to be addressed before the DOI moves forward.:Minimum stubble height requirements on perennial grass and other types of vegetation during certain times of the year: These restrictions limit the extent to which ranchers can graze their animals on public lands, since grazing beyond a certain point risks leaving the grass below the minimum height specified in the plan.  In many cases prairie grass doesn’t reach the proposed minimum height, especially in dry years or years following drought.Requirements that new structures on lands covered by the plans have a neutral or beneficial effect on Greater Sage Grouse habitat: This requirement curtails placement of management structures, such as fences, windmills, and various water developments, that are essential for ranching and farming.Restrictions on construction of new permanent facilities within 1.2 miles of occupied Greater Sage Grouse leks: These restrictions effectively prohibit the construction and use of certain facilities in certain areas. These facilities may include corrals, water tanks and windmills, etc., which are necessary to farming and ranching.Mandatory removal of livestock ponds in certain perennial channels: When a livestock pond in a perennial channel is deemed to have a negative effect of riparian habitats, the proposed plan requires it to be removed. Obviously, reservoirs are often vital for watering herds of livestock in Montana and removal would cause undue harm to ranchers and their livestock.Forced removal or modification of certain fences in areas within 1.2 miles of Greater Sage Grouse leks: Ranching and herding require fences to manage livestock, but the plan variously bans or requires modification of fences in ways that will require more labor for ranchers and make ranching less efficient.Various plans need to work together with the states management plan: There cannot be one plan for private land and another for public land.  The State of Montana worked very hard to establish a management plan that would satisfy requirements and protect the species. The state plans have been approved by the Fish and Wildlife Service for the protection of Greater Sage Grouse; therefore, those plans should be used for public lands, as well. Evaluating and reforming the current Sage Grouse Land Management Plan will allow sage grouse, cattle and other multiple uses to flourish together in the American West. 

New kind of farm going up in southeastern South Dakota

There’s a new kind of farm going up in southeastern South Dakota. Its barns will house cattle like many farms in the area, but these cattle won’t be raised for meat or milk. They’ll be producing antibodies that can treat human diseases.

SAB Biotheraputics, based in Sioux Falls, uses cloned cattle with certain human DNA. The cows are injected with a vaccine and produce antibodies to fight disease. By taking the plasma from their blood and sterilizing it in a lab, the antibodies could be used in humans to battle some of the worst diseases, including Ebola and Zika. The company’s latest focus is treating the type of flu that puts people in the hospital. Some people don’t respond to flu shots, but an influenza therapeutic produced by SAB could help them.

The company is working toward the first clinical trials on influenza, and if approved, SAB’s cattle are ready to produce the treatment. The new facility could make enough of the antibody to meet worldwide demand, using just 20% of its capacity.

SAB just completed its first trial in humans for treating MERS or Middle East Respiratory Syndrome. The results showed that the cow-made antibodies worked just like human antibodies to treat the disease.
SAB will start by moving its 35 cows that now live at the Trans Ova Genetics facility across the border in Iowa. Those cows were implanted with embryos the day after the groundbreaking, preparing to create the next generation of antibody-producing bovines.

The first biosecure barn, measuring 360’x50’, will hold up to 80 cows. At full capacity, the 80-acre site and facility could handle 400 head of cows and 40 employees, according to SAB.  

GAO has made several recommendations to USDA for improving oversight of commodity checkoff programs

The U.S. Government Accountability Office (GAO) has made several recommendations to USDA for improving oversight of commodity checkoff programs, including better review of subcontracts and display of key documents on program websites.There are 22 federal agricultural research and promotion programs, funded by a fraction of the sale of each unit of a commodity. In 2016, check-off funds totaled over $885 million.GAO reviewed eight of the programs, finding that USDA’s Agricultural Marketing Service (AMS) has improved its oversight since the agency’s Office of Inspector General (OIG) made recommendations in a 2012 report. AMS has developed and implemented standard operating procedures and begun to conduct internal reviews of its oversight functions.However, GAO also found that AMS does not consistently review subcontracts, which impairs its ability to prevent misuse of funds, and that only four of the eight checkoff programs shared all key documents, including budget summaries and evaluations of effectiveness, with stakeholders on program websites.In addition to recommending better subcontract oversight and transparency on websites, GAO also suggested that AMS establish a mechanism for tracking checkoff board management review, follow steps to improve annual audits, and develop criteria for assessing whether standard operating procedures are met. 

US Farm Exports To South Korea Show Big Increase

South Korean imports of U.S. meat, grains, fruits, vegetables and other farm products have risen by 25 percent this year from January through September, according to a report from the U.S. ag attache office in Seoul, South Korea."Despite escalated competition from export-oriented competitors, consumer-oriented American products continued to lead the expansion of export market in Korea, which reflected Korean consumers' increased demand for better value, quality and diversity," the report said. Of note, the analysis said U.S. farm product exports to South Korea will continue to increase next year, adding the current Korea-U.S. (KORUS) trade accord is partially responsible along with an improving South Korean economy

Head of Brazil's Minvera Sees US Market Reopening To Brazil Beef in First Quarter 2018

Exports of Brazilian beef to the U.S. market are expected to resume in the first quarter of 2018, according to Minvera CEO Fernando Galetti. He told reporters that view is based on consultations with the Brazilian ag ministry.He also noted the situation is unchanged relative to Russia's ban on certain Brazilian meat exports, but the Brazilian government was working to lift that ban "soon."

Canada Group Issues Report on Trade Without NAFTA

A Canada-based financial group outlines trade without the North American Free Trade Agreement in a new report called “The Day After NAFTA.” BMO Financial Group of Montreal published the report that says the Canadian food and beverage industry would be highly vulnerable without NAFTA, and that Canadian and U.S. crop producers would face a moderate level of vulnerability. Specifically,  Canadian food and beverage producers would face among the highest U.S. tariffs of all industries post-NAFTA, according to the Hagstrom Report. For beverage and tobacco exports to the U.S., Canada could see tariff rates approach 20 percent. Food exports would see U.S. tariffs return to around 4.5 percent, far lower than vice tariffs, but still the third-highest of all industries. However, the report points out that less than 20 percent of Canadian crop products are sold into the U.S. marketplace, which would limit the impact on industry costs and profitability. Meanwhile, U.S. crop producers would also be affected, as the report says they would face tariffs averaging nearly four percent on exports to Canada and a lofty 11 percent on exports to Mexico.

Eliminating Poultry Trade Barriers Part of NAFTA Negotiation Objectives

New items added to the list of negotiation objectives include eliminating Canadian tariffs on U.S. poultry as part of the next round of North American Free Trade Agreement talks. The next round of negotiations, scheduled for next month in Washington, D.C., will include the new objectives by U.S. Trade Representative Robert Lighthizer, according to meat industry publication Meatingplace. Lighthizer recently updated the objectives list to include the elimination of all remaining Canadian tariffs on imports of U.S. dairy, poultry and egg products, along with the elimination of “discriminatory barriers and unjustified technical barriers,” including those affecting U.S. grain and alcohol beverages, among other objectives. However, Lighthizer issued a statement last week that said he was “concerned about the lack of headway” in NAFTA talks.

2017 Census of Agriculture Gets Underway

The Department of Agriculture’s National Agricultural Statistics Service is mailing the 2017 Census of Agriculture to the nation’s producers this week. Conducted once every five years, the census aims to get a complete and accurate picture of American agriculture. Data collected in the census is used by farmers, trade associations, researchers, policymakers and others to help make decisions in community planning, farm assistance programs, farm advocacy and rural development, according to USDA. Agriculture Secretary Sonny Perdue says the census “gives every producer the opportunity to be represented.” The census will be mailed in several phases through December. Farm operations of all sizes which produced and sold, or normally would have sold, $1,000 or more of agricultural product in 2017 are included in the census. The census response deadline is February 5th, 2018 and responding to the Census of Agriculture is required by law.

Biodiesel Industry Lobbying for Tax Credit

Nearly 100 members of the National Biodiesel Board are on Capitol Hill this week encouraging lawmakers to reinstate the biodiesel tax credit, which expired in December 2016. As part of an annual fly-in to the Capitol, NBB members are meeting with lawmakers to support the tax credit to “stabilize the business environment” for the industry, according to NBB CEO Doug Whitehead. They are also sharing results of a new survey conducted with 1,000 registered voters nationwide. The survey found that 82 percent of registered voters support a federal tax incentive. The same percentage of people polled expressed support for a national Renewable Fuel Standard. The visits come as the Environmental Protection Agency is expected to release the final RFS volumes this week. Since the July proposal was released, NBB has repeatedly called for growth in the volumes. The July proposal offered up a reduction in advanced biofuels, of which biodiesel fills roughly 90 percent and a flatline of biomass-based diesel.

FSA County Election Deadline Looming

The deadline to return Farm Service Agency county committee election ballots is approaching. The Department of Agriculture says eligible producers must return the ballots to their local FSA office, or be postmarked by December 4th, 2017, to ensure their votes are counted. FSA acting administrator Steve Peterson says approximately 1.5 million producers are eligible to vote in this year’s election, adding that it is “your opportunity to have a say in how federal programs are delivered in your county.” Eligible voters who have not received a ballot can obtain one from their local FSA office. Nearly 7,700 FSA county committee members serve FSA offices nationwide. Each committee has three to 11 elected members who serve three-year terms of office. One-third of county committee seats are up for election each year.

EU Grants Glyphosate License Renewal

After two years of dispute, the European Union has extended the license for glyphosate for five years. Representatives from a majority of the EU's 28 nations approved the five-year license renewal of glyphosate, the most widely used herbicide in the world. The unexpected move unblocked a two-year deadlock after the World Health Organization's International Agency for Research on Cancer concluded that glyphosate has the potential to cause cancer in humans, according to a report by Dow Jones. Eighteen countries voted in favor of the renewal, including Spain and the U.K. Nine nations including France voted against it and Portugal abstained. The European Commission is now set to renew the five-year license before December 15th, when the current license expires. 

Continuing trend of strength in the bred female markets in October and weakness in other classes

Across the nation there was a continuing trend of strength in the bred female markets in October and weakness in other classes. The early November rally in the fed and feeder cattle markets likely added support to female prices but occurred after press time and are not included here. Bred heifers, which posted $200 per head gains in September, added a modest $10 per head average gain in October. Open females suitable to go back to the country also posted modest gains in October. Other female classes saw prices decline, though not significant.Bred heifers sold at auction for an average of $1,170 in October, up from September’s $1,165. Young and middle-aged bred cows posted only a modest $4 per head increase to $1,149 per head. Older bred cows gained $12 per head after September’s large $189 price decline.Open female prices were mostly higher. Heiferettes traded $4 per cwt higher, followed by the young and middle aged cows adding $3 per cwt. Aged open cows declined $5 per cwt. A 1,000-lb. open cow suitable to go back to the country is still trading at about $40 to $50 per head higher than this same time last year.
The market for cow-calf pairs is seasonally thin, as few cattle are marketed as pairs at the end of the grazing season. Cows with small calves held steady at $1,306 per set in October, while cows with large calves lost $57 per pair. Aged cows with calves declined $60 per pair.Slaughter cow prices also declined during October. Utility and commercial cows sold at $58.67 per cwt, down $5.17 per cwt. Canner and cutter cows traded at $54.55, a decline of $3.91 per cwt. 

Survey Shows Young Farmers Ready to Defy Odds

The new generation of young farmers expects to overcome major barriers to their success in agriculture, according to a freshly released national survey. Young farmers expect to tackle barriers including access to land, affordable health care, and mounting student loan debt in their quest to farm. However, the 2017 National Young Farmer Survey says success will require deliberate policy change at all levels of government. Released by the National Young Farmers Coalition, the survey collected data from more than 3,500 young and aspiring farmers under 40 years of age. The report found that the top challenge cited by young farmers is land access, particularly finding and affording land on a farm income. It is also the main reason why farmers quit farming and why aspiring farmers haven’t yet started, according to the survey. With the release of the survey, the coalition is calling on Congress to enact a slate of policy reforms it calls the “Young Farmer Agenda.” The agenda includes addressing land access, student debt management, and increasing the skilled agricultural workforce. The survey can be found at www.youngfarmers.org. 

Trade Tops China, Canada Meeting Agenda

Trade will top the agenda between China and Canada next week during Canadian Prime Minister Justin Trudeau’s (True-doh) visit to China. The visit is aimed at promoting a "progressive trade agenda” that Canada says will “create good, middle-class jobs," according to Bloomberg News. The trip comes as Canada is in the midst of renegotiating the North American Free Trade Agreement with the U.S. and Mexico. China was Canada's second-largest trade partner behind the U.S. last year, with nearly $70 billion in total trade. Merchandise shipments to China rose four percent to almost $21 billion in 2016, led by forest and agricultural products. Officials from China say a potential bilateral trade deal with Canada would boost economic integration in the Asia-Pacific region.

Former BPI Employees Apply for Financial Aid Fund

Roughly 700 former Beef Products Inc. employees have applied for financial aid from a fund created by a lawsuit settlement with ABC News. Meat industry publication Meatingplace reports that BPI representatives are currently reviewing the applications to determine how it will distribute the funds, taking into account how employees were financially impacted and their length of service. The $10 million fund was established to benefit BPI employees negatively affected by plant closures in 2012. The fund was announced after BPI reached a settlement with ABC News in its defamation lawsuit. BPI closed three of its production facilities in 2012 and laid off about 750 employees after business fell off following a series of media reports that referred to the company’s Lean Finely Textured Beef product as “pink slime.” 

Capitol Christmas Tree Arrives

A nearly 80-foot tall Christmas tree arrived Monday at the U.S. Capitol in Washington, D.C. The Department of Agriculture's Forest Service provides a tree each year from a different state for the Capitol. This year's tree, an Engelmann Spruce, is 79 feet tall and comes from northwest Montana. The 15,000 lbs., the 76-year-old tree made a two-week, 3,400-mile journey to reach the Capitol. With the tree, around 70 companion trees, ranging anywhere from six to 20 feet tall, and all from Montana, will go to Senate and congressional offices. The annual tree-lighting ceremony at the Capitol is scheduled for December 6th. 

Eliminating Canadian tariffs on U.S. poultry products and expanding transparency on other trade issues are among items for the upcoming NAFTA negotiations

Eliminating Canadian tariffs on U.S. poultry products and expanding transparency on other trade issues are among the new items in an update of the U.S. Trade Representative’s (USTR) objectives for the upcoming North American Free Trade Agreement (NAFTA) negotiations.U.S. Canadian and Mexican negotiations last week completed the fifth round of talks on revising NAFTA and are scheduled to resume meetings next month in Washington, D.C. USTR recently updated the objectives list issued in July 2017 to include several new items, including:The elimination of all remaining Canadian Tariffs on imports of U.S. dairy, poultry and egg products.The elimination of “discriminatory barriers and unjustified technical barriers,” including those affecting U.S. grain and alcohol beverages.Reinforce commitments to promptly publish laws and rulings that affect trade and investment and provide opportunities for public comment before measures are finalized.Ensuring transparency and accountability in the development, implementation and review of regulations.Increasing opportunities for US. firms to sell U.S. products and services into the NAFTA countries.The new update also expands previously listed provisions covering small- and medium-sized enterprises (SMEs), specifically establishing a NAFTA trilateral committee and dialogue on increasing commercial opportunities within NAFTA for SMEs.USTR Robert Lighthizer issued a statement last week that said he was “concerned about the lack of headway” in NAFTA talks. 

Cash fed cattle prices declined 50 cents per cwt. last week

Cash fed cattle prices declined 50 cents per cwt. last week, but average feedyard closeouts showed profits of nearly $90 per head, a $61 improvement over the previous week. Margin gains were the result of a $5 per cwt. decline in closeout break even prices, according to the Sterling Beef Profit Tracker.The cost of feeder cattle calculated against last week’s marketings declined $6.60 per cwt., while feed costs dropped $14 per head, according to the weekly average calculations.Beef packer margins improved an average of $28 per head to $120. The beef cutout declined $1.72 per cwt. to $204.81. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.Break even prices for steers sold last week averaged $112.15 per cwt., and average feed costs totaled $217 per head. Cattle placed on feed last week have a projected breakeven of $114.38 per cwt.The cost of finishing a steer last week was calculated at $1,561 per head, which is $67 less than the $1,537 a year ago. A month ago cattle feeders were earning $168 per head, while a year ago losses were calculated at $31 per head. Feeder cattle represent 75% of the cost of finishing a steer, compared to 72% last year.Farrow-to-finish pork producers lost an average of $2.35 per head last week, a decline of $2 per head from the previous week. Lean carcass prices traded at $58.81, a dip of $1.66 per cwt. from the previous week. A year ago pork producers lost an average of $33 per head. Pork packer margins totaled $40 per head last week, about $5 per head higher than the previous week.Cash prices for fed cattle are $10 higher than the same week a year ago. Lean hog prices are about $15 per cwt. higher than last year.Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2017 will average $136 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 $228 per head in 2017, which compares favorably with average losses of $4.25 per head in 2016. Nalivka expects packer margins to average about $118 per head in 2017, up from $114 in 2016.For farrow-to-finish pork producers, Nalivka projects 2017 profit margins to average $20 per head, compared to $5 per head last year. Pork packers are projected to earn $24 per head in 2017, up slightly from $24 profit per head in 2016. 

A federal court has delayed a mandate for livestock producers to report certain emissions

OMAHA (DTN) -- A federal court has delayed until Jan. 22, 2018, a mandate for livestock producers to report certain emissions, according to an order handed down from the U.S. Court of Appeals for the District of Columbia Circuit on Wednesday.Back in April, the court threw out a U.S. Environmental Protection Agency decision to not require livestock operations to report emissions, essentially allowing the reporting rule to take full effect on Nov. 15, 2017. The rule requires livestock producers to report emissions of more than 100 pounds per day of either ammonia or hydrogen sulfide.Animal feeding operations that confine more than 1,000 head of cattle, 2,500 head of hogs, or 125,000 chickens are defined as concentrated animal feeding operations, or CAFOs, by EPA. Ammonia and hydrogen sulfide emitted from livestock lagoons have been classified as "hazardous" and "extremely hazardous." 

Strong stocker demand pushed calf prices counter-seasonally higher before Thanksgiving

For the week ending November 17, the Oklahoma combined auction price for 475 pound, medium/large, number 1 steers was $183.34/cwt.  That is the highest price for that category of steers since May of 2016 and is $28.86/cwt higher than the same week last year.  Across weight groups, feeder cattle prices are generally 17 to 24 percent higher than one year ago.  Steer calves are bringing $140-$200/head more than last year and heifer calves are bringing $100-$150/head more.  The strength in feeder cattle prices has been quite remarkable given increased supplies.  Auction volumes have been 25 percent higher than last year for the last four weeks.Prices for bigger feeder cattle dropped last week under the pressure of declining Feeder futures.  However, heavy feeder prices have been a bit stronger relative to calves all fall and thus remain very good.  Steer prices are realigning to a more typical rollback with heavy weights declining relative to calf prices.  Heifers, however, continue to have a very flat price structure with heifers from 475 to 725 pounds all priced within $3.00/cwt. last week.The November Cattle on Feed report was a continuation of recent months.  Placements were larger than expected, up 10.2 percent year over year.  Marketings were up 5.6 percent leading to a November 1 on-feed total of 11.332 million head, up 6.25 percent over last year.  Feedlot inventory growth is slightly higher in the north with year over year Nebraska and Iowa on-feed totals up 8.6 and 15.0 percent while Kansas and Texas are up 2.2 and 6.0 percent. Year to date steer and heifer slaughter is up 5.5 percent year over year with steer slaughter up 2.5 percent and heifer slaughter up 12.0 percent.  However, in the last eight weeks, steer and heifer slaughter is up just 4.4 percent year over year. So far this year cow slaughter is up 7.1 percent led by a 10.4 percent year over year increase in beef cow slaughter and a 4.2 percent increase in dairy cow slaughter.  Fed carcass weights continue to inch toward a seasonal peak but remain well below year ago levels.  Latest steer carcass weights were 902 pounds compared to 913 pounds the same week last year.  Heifer carcass weights are currently 833 pounds, nine pounds less than the 842 pound level at this time last year. Beef production is up 4.1 percent for the year to date but the year over year increase is declining.  In the last eight weeks, beef production is up only 1.8 percent compared to the same period last year.  Boxed beef prices enjoyed a nice rally through early November but have since pulled back with most holiday meat sales already completed.  October retail beef prices were steady with year ago levels for both Choice and All-Fresh beef. All in all, cattle and beef markets appear set to finish 2017 on a strong note. 

Canada's wheat exports (excluding durum) at 4.7327 million metric tons the week-ending Nov. 19

The Canadian Grain Commission reported Canada's wheat exports (excluding durum) at 4.7327 million metric tons as of week 16, or the week-ending Nov. 19. This volume is 8.4% ahead of the same period in 2016/17, as seen on the accompanying graphic, although is still well behind the pace of movement seen in the 2013/14 through 2015/16 period and is 4% behind the five-year average for this period.This comes at a time when major wheat exporters are struggling. Friday's sales and shipments data in the U.S. shows that country's sales and shipments are both 8% behind the year-ago pace. The European Commission has reported that cumulative exports of wheat since the beginning of the crop year is 2 mmt behind the same period last crop year as of the latest week, with increased competition from Russia and the strength in the Euro weighing on E.U. prospects. On Thursday, European analyst AgriTel reported on Russian statistics, which points to record on-farm stocks of wheat in that country as of Nov. 1, which suggests the situation may not change for some time. As of Nov. 1, Russia's total wheat stocks were estimated to be 20% higher than last year while milling wheat stocks were estimated 28% higher than the same period in 2016.Trade data to be released in the upcoming weeks should point to continued movement into the U.S. Week 16 data points to exports from licensed terminals at 4.3985 mmt, which reflects 93% of total licensed exports. This compares to 98% of exports in the same period of 2016/17 originating from export terminals while the three-year average is 96.2%. This suggests a higher share of exports originating from direct rail movement to the south.Can this pace continue? Total commercial stocks are reported at 3.046 mmt, up 45.5% from the volume reported in week 16 of the 2016/17 crop year. Of this volume, 1.459 mmt is reported in export terminals, up 22.8% from last year. Volume held in Pacific terminals is reported at 264,600 metric tons, down 2.9% from last year. The largest year over year change in inventories is seen in licensed primary elevators in the country, with stocks increasing 81% year over year at close to 1.5 mmt, the highest country stocks seen for this week in four years.Perhaps one concern is seen with the report for in-transit stocks, western rail in-transit stocks reported at 54,700 mt, the lowest weekly volume seen in five weeks and down nearly 74% from the same week in 2016/17.

EPA Maintains RFS Point of Obligation Requirement

The Environmental Protection Agency decided Wednesday to maintain the Renewable Fuels Standard Point of Obligation. A Farm Futures Dot Com report notes that EPA administrator Scott Pruitt followed through on a promise to a group of Midwest senators that he would deny a petition from oil refiners to change the point of obligation. He followed through on Wednesday when the Federal Register noted that the petition had been denied. Petitioners had claimed that changing the point of obligation would result in an increase in the production, distribution, and use of renewable fuels in the U.S. and would reduce the cost of fuel for consumers. An EPA news release says the agency doesn’t believe that the petitioners proved that changing the point of obligation would be beneficial. The EPA says, “While we do not anticipate a benefit from changing the point of obligation, we do believe that such a change would significantly increase the complexity of the RFS program, which could negatively impact its effectivness.” POET CEO Jeff Broin says, “I applaud the President and EPA for standing up to the special interest groups within the oil industry who seek to undermine American-made biofuels.”

Some Corn Belt Farmland Values are Stabilizing

Although it’s not region-wide, there are some signs that farmland values in the Corn Belt have begun to stabilize. A Top Producer report says Iowa farmland values rose two percent in the six months prior to September. Those same values are also three percent higher than at the same time last year. The Iowa Chapter of Realtors Land institute survey says that’s the first increase in three years. Other Corn Belt states are showing steady to slightly lower values over the same time period. The report notes that the run-up in farmland value started in Iowa and then spread to other states. The downturn over the last couple years also began in Iowa and spread to the other states. The overall volume of properties currently for sale remains tight, which the report says tends to be supportive for the higher-quality land for sale. The number of farmland properties for sale typically rises in the winter. However, if the overall volume stays low, that may actually help values in other states, especially in the Corn Belt, begin to follow Iowa’s lead and stabilize further. 

Grassley, Ag State Senators Maintain Push for NAFTA

Iowa Republican Senator Chuck Grassley remains optimistic that the North American Free Trade Agreement negotiations will come to a conclusion that benefits agriculture. The Gazette Dot Com said Grassley’s optimism remains in spite of the hard-line taken by the Trump administration in the negotiations. Grassley and other ag-state senators have been continually pushing for the trilateral agreement to continue. The U.S. Chamber of Commerce says NAFTA supports 138,000 jobs and $5.3 billion in exports from Grassley’s home state. At a recent appearance in Cedar Falls, Iowa, Grassley noted that he expects the hard-line negotiations from the Trump administration to continue, but he also says, “surely they’re not going to let this thing fall through.” Grassley says he, fellow Iowa senator Joni Ernst, and Senate Ag Committee Chair Pat Roberts of Kansas have all been continuing to push for the agreement in meetings with several key Trump advisers. He’s had three or four meetings with trade adviser Pete Navarro, two or three with Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer met with Grassley for 45 minutes.

South Korea Minister Says No Concessions in Farm-Sector KORUS Discussions

The South Korean trade minister says his country will not take a step backward in the upcoming discussions on updating the South Korean – U.S. free trade deal, known as KORUS. The Korean Herald Dot Com says he told reporters that the government is taking a “strong stand on the agriculture sector and will not retreat any further.” This was similar to a comment made by the top Korean negotiator back in October that said the ag sector is a “red line.” The U.S. is looking to narrow the trade deficit it currently faces in trade with South Korea. The trade minister said America is looking to export more goods from the auto and steel industries but did say another option the U.S. may want is to export more farm goods. Over five years after the deal was first ratified, U.S. calls for renegotiation are worrying the South Korean ag sector that it might be undermined as the country is already dealing with product oversupply. A public hearing on November 10 in South Korea was interrupted by farmers demanding the deal be ended. They were upset about a government feasibility study that showed renegotiation would have little impact on the economy, saying it “misrepresented the local ag economy.”

H-2A Minimum Wage for Guest Workers Likely to Rise in Several States

The minimum wage for H-2A guest workers is likely to rise in several states during 2018. The National Ag Statistics Service surveys the prevailing wages of field and livestock workers in different regions across the country. The NASS calculations are normally adopted by the U.S. Department of Labor in December as the Adverse Effect Wage Rates for the coming year. The AEWR is above state minimum wages and is intended to prevent domestic wages from being impacted by an influx of foreign workers. For example, the new minimum wage for H-2A visa guest workers in Washington and Oregon will likely rise over five percent to $14.12 per hour. While the wage is higher, the region ranking slips from the highest minimum wage to the second-highest in the nation. Hawaii is number one at $14.37 per hour. California’s wage is projected to rise almost five percent to $13.18. Idaho and Wyoming will likely drop three cents to $11.63. Florida, Georgia, and North Carolina are the top three states in the U.S. in terms of the overall number of H-2A guest workers, with Washington and California rounding out the top five states.

John Deere Sales and Income Numbers Climb

Improving farm and construction equipment markets contributed to higher sales and income numbers for the fourth quarter and full year for John Deere. The company’s performance benefitted from advanced products and a flexible cost structure. John Deere’s 2018 income forecast calls for a net income of $2.8 billion. Net income for Deere and Company was just over $510 million, or $1.57 per share, for the fourth quarter ending on October 29. By way of comparison, 2016 fourth-quarter income attributable to Deere and Company was $285.3 million, or 90 cents per share. The Fiscal year 2017 income totaled $2.159 billion, or $6.68 per share. That compares to $1.54 billion, or $4.81 per share, last year. Worldwide net sales and revenues increased 23 percent for the fourth quarter, as well as 12 percent for the full year. Samuel R. Allen, John Deer Chair and CEO says the year’s sales and earnings were the fifth-highest in company history. “John Deere has completed another successful year as markets for farm and construction equipment showed improvements, while our actions to build a more durable business model yielded stronger results,” he adds. 

CS Beef Packers will use a $1.1 million state grant announces 701 new workers at the company’s new beef plant in Kuna

CS Beef Packers will use a $1.1 million state grant announced Friday to hire and train 701 new workers for full-time positions at the company’s new beef plant in Kuna, Idaho.  CS Beef Packers, a joint venture between Texas-based Caviness Beef Packers and Idaho-based agribusiness J.R. Simplot Co., began operations at the 400,000-square-foot facility on May 30.Trevor Caviness, president of Caviness Beef and an owner of CS Beef Packers, told Meatingplace the plant currently employs 600 people, and 701 will represent full staffing. The plant is processing 1,200 head of cattle per day.Idaho’s Workforce Development Training Fund grant, for which CS Beef Packers applied last year, will help the company hire and train production workers, drivers, safety technicians and supervisors. Training will focus on food processing safety, OSHA standards and meat master equipment training.
The company will pay an average wage of $17.28 per hour plus employer assisted medical benefits, according to the state’s news release.CS Beef Packers’ services include packing, rendering and tanning hides. 

Montana Farm Bureau selected to run Ag in the Classroom

The Montana Farm Bureau Federation has been selected to continue the mission of the Ag in Montana Schools (AMS) program. Under the direction of MFBF, the program will be titled Ag in the Classroom.“Agriculture in Montana Schools was a very reputable program and we don’t want to see the efforts of that organization end. We plan to continue their mission and share the importance of Montana agriculture with students across the state,” said Rikki Murrill, MFBF regional manager who will coordinate the Ag in the Classroom program on behalf of Farm Bureau.With the transition to MFBF, the program will be called ‘Montana Farm Bureau’s Agriculture in the Classroom,’ and be primarily driven by the MFB Women’s Leadership Committee (WLC). “This program will be a collaborative effort of Montana Farm Bureau’s other programs, like the Young Farmers and Ranchers Committee and the Promotion & Education Committee,” noted WLC Chair Gretchen Schubert. “So many of our members care about agricultural education for all ages and understand that the future leaders of our industry are in classrooms across Montana.”Ag education is a comfortable fit with MFBF’s Women’s Leadership Committee and their focus on agricultural education. Currently, the WLC provides Accurate Ag Books and accompanying materials to county Farm Bureau to share with their local schools.“AITC, which is local as well as national in scope, will provide a broader spectrum to work with and hopefully result in a larger impact,” Schubert said. Many Farm Bureaus manage the AITC in their states.The well-established drawing contest will continue under the direction of Montana Farm Bureau’s Ag in the Classroom program. Teachers and school staff are encouraged to participate in this activity for students in grades K-6. Official rules are available on www.mfbf.org.“We are thrilled to begin Montana’s Ag in the Classroom and to connect with students and teachers while relaying the importance of agriculture in our communities and state,” Schubert concluded.For more information contact: Rikki Murrill, rikkim@mfbf.org or (406) 231-4422. 

Cattlemen Applaud Court-Ordered Stay in CERCLA, EPCRA Reporting Mandate

"One More Thing For Which to Be Thankful," Uden SaysWASHINGTON (Nov. 22, 2017) -- Craig Uden, president of the National Cattlemen’s Beef Association, today released the following statement in response to the DC Circuit Court’s decision to stay a mandate that agricultural entities file reports under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA) –

“Cattle producers have one more thing for which to be thankful this Thanksgiving weekend. Agricultural operations were never intended to be regulated by these laws, so this court-ordered stay until January 22 is very welcome news. We’ll use this additional time to continue working on the introduction of stand-alone legislation to fix this issue, and we’ll also promote corrective language in the appropriations process.”

For more information about the CERCLA/EPCRA reporting issue and how it affects cattle producers, visit NCBA’s website here. 

Sen Grassley: McConnell to Help Lift Hold On Northey for Key USDA Role

Senate Majority Leader Mitch McConnell, R-Ky., has committed to help get the hold lifted that Sen. Ted Cruz, R-Texas, put in place on USDA nominee Bill Northey, Sen. Chuck Grassley, R-Iowa, told reporters Tuesday.Grassley and Sen. Joni Ernst, R-Iowa, "had a conversation" with McConnell on getting Northey to be voted on by the U.S. Senate to be an undersecretary at USDA dealing with farm and conservation programs, an "important" role."When it comes to the farm bill, we need him in place," Grassley said. "And from that standpoint, the leader said he would help move it along."It's not clear what McConnell will do to get Cruz to lift his hold, Grassley said, adding that he and Ernst were clear in stating that it needs to happen no later than early December.Cruz placed a hold on Northey's nomination after EPA made commitments Grassley, Ernst and other farm-state senators not to change U.S. biofuel policy, including changes backed by Cruz. The Texas Republican has demanded a meeting with the White House on the biofuel policy issues, but that has not taken place.

US Commerce Sets Preliminary CVD on Olives from Spain

Exporters of ripe olives from Spain have received subsidies of 2.31% to 7.24%, the U.S. Commerce Department announced late Tuesday in an affirmative preliminary determination.Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of ripe olives from Spain based on these preliminary rates.“The U.S. values its relationships with Spain, but even friendly countries must play by the rules,” Commerce Secretary Wilbur Ross said. “We will continue to review all information related to this preliminary determination while standing up for American workers and companies.”Unless the final determination is postponed, Commerce is currently scheduled to announce its final countervailing duty (CVD) determination on April 4, 2018. If the final determination is affirmative and the International Trade Commission makes an affirmative final injury determination, a CVD order will be issued.The final determination from the ITC is to be made on or about May 18, 2018.

Washington Insider: Congressional Approval Needed to Change NAFTA

Much of the talk about NAFTA these days is quite bearish, including that from the right side of the political aisle. In fact, Bloomberg took care to cite Senator John Cornyn, R-Texas, this week, and his statement that the “administration needs to keep Congress in mind and know that lawmakers will need to approve any renegotiated NAFTA.” The comments came as the latest round of negotiations to update the trade agreement was ending in in Mexico.Cornyn's comments came following testimony minutes earlier from industry groups reiterating the importance of the agreement to their industries and the economy. Negotiators from Canada, Mexico, and the U.S. that had been meeting in Mexico City for the latest round, that closed this week.“It's even more important that we stay in close communication with the negotiators, so that we can negotiate something that actually has a chance to be passed by Congress, pursuant to the trade promotion authority,” Cornyn said.Cornyn’s views are important since he chairs the trade subcommittee of the Senate Finance Committee and is Senate Majority Whip. And, he is a long-time NAFTA supporter. Cornyn said he held the hearing to tell the story of NAFTA and how it has benefited the economy.Cornyn heard earlier from Stephen Vaughn, general counsel at the Office of the U.S. Trade Representative, as well as from trade associations at the Nov. 20 hearing. Vaughn outlined some of the changes the administration wants to see in NAFTA, including a five-year sunset clause, Cornyn sided with industry in its opposition to such a provision. He thinks it would discourage investment. “The idea that you would encourage somebody to invest millions of dollars into some plant or business model and then pull the plug on it in five years is undermining the whole process.”The San Antonio hearing was held on the anniversary of the signing of the draft agreement in 1992. Afterwards, Cornyn held a news conference by a plaque outside a San Antonio hotel commemorating the event.“I believe NAFTA is working, certainly it's working for Texas,” Cornyn said. “When people say there are winners and losers in NAFTA, I'm wondering where those losers are. Maybe we need to hear more about that because obviously we care about the welfare of all Americans, but certainly here in Texas it is working.”The rhetoric about withdrawing from the agreement may just be a negotiation tactic, Cornyn said, as a panel of industry representatives disagreed with the USTR position. While modernization is necessary to update the agreement on topics such as intellectual property and technology in cross-border operations, it is important to keep other provisions intact, including the rules of origin define the share of components that must come from NAFTA countries.The agriculture industry is very concerned about the administration's threat to walk away from the agreement, Russell Boening, head of the Texas Farm Bureau told Bloomberg after the hearing.Representatives from the American Farm Bureau met with Mexican agriculture organization representatives and Canadian agricultural representatives in Washington, Boening said. “We're having the same conversations because they're just as concerned as we are,” Boening said. “A trade deal is a trade deal. There are a lot of imports as well, because we can't grow tomatoes here in January.”The Texas Association of Business President Jeff Mosley told Bloomberg that “there is a strong commitment to timely resolution because businesses, of course, will sit on the sideline where there is uncertainty,” Mosley said. “Just the fact there are negotiations have caused Canadian, Mexican, and U.S. businesses to sit back and wait and see, and that has a chill on the existing trade we enjoy.”The Texas Association of Business also organized a trade coalition called the Texas-Mexico trade coalition.“The group has been very vigorous in opening a dialogue, not only with Texans working in Mexico but with our Mexican trading partners,” Mosley said. “We believe a new NAFTA agreement should benefit all parties so we have to make sure our trading partners interests are heard.”The negotiations will result in a modernization of the NAFTA agreement, Cornyn said, because consequences of a failure of the talks, “are really going to be very bad for all three countries involved. I really don't see failure as an option.”So, we will see. Certainly, ag groups are badly worried about the administrations negotiating signals so far. The industry seems to feel confident that it has strong support from USDA, but is increasingly concerned that may not be sufficient. This is yet another debate producers should watch closely as it proceeds, Washington Insider believes.

Senators Want Commerce Secretary to Analyze NAFTA Withdrawal Cost

A bipartisan group of Senators sent a letter this week to Commerce Secretary Wilbur Ross, asking the administration to collect a “robust economic analysis” to evaluate how changes to the North American Free Trade Agreement would affect agriculture. The letter says, “It’s imperative that before any changes are made to NAFTA or any other free trade agreement, that economic analysis illustrating the impact on the full supply chain of the industries involved gets looked at. As such, we request an economic analysis that evaluates the impacts to crop and livestock sectors as a result of any change to NAFTA.” America is the world’s top exporter of food and agricultural products. U.S. agriculture depends on access to international markets in which to sell their goods. As the fifth round of the NAFTA negotiations wrapped up today (Tuesday), the senators clearly stated that any changes to U.S. trade policy must be positive for agriculture. That’s especially important because farmers and ranchers have been struggling with lower prices for their products.

Agriculture Among NAFTA Topics on Final Day

The fifth round of North American Free Trade Agreement negotiations wrapped up today (Tuesday). A Politico report describes the talks as relatively quiet. Canadian negotiators haven’t been making many counteroffers to U.S. proposals. Instead, they’re using closed-door meetings to challenge American proposals with data and to ask for explanations of why the U.S. feels the need for certain things to change. The strategy is reported to be increasingly irritating to U.S. negotiators, who say it does little to advance progress in negotiations. On the last day in Mexico City, negotiators focused on agriculture, technical barriers to trade, auto rules of origin, dispute settlement, and investment. The agriculture industry is still working to convince officials of just how negative the effect on agriculture would be if America withdraws from NAFTA. Russell Boening, Texas Farm Bureau president, spoke before a Senate Finance Subcommittee hearing in San Antonio. He told the officials that exports helped to offset a serious drop in farm income over the last several years. “Due to the current state of the farm economy, a full withdrawal from NAFTA would devastate the entire American Ag community and our nation,” he says. “We must make sure that doesn’t happen.” 

Tyson Building New Tennessee Plant; Kansas on Hold

Tyson Foods announced it will build a chicken-processing plant in western Tennessee. A Drovers’ report says the plant will be up and running by 2019 and will provide more than 1,500 new jobs. The $300 million plant will be built in the city of Humboldt. Tyson had already invested money in Tennesse as it announced an $84 million dollar expansion of its plant in Union City. Tyson chose Humboldt for its new site over several other locations in the state. A similar plant was proposed in Leavenworth County, Kansas, but public backlash over the plant kept the plan from getting any footing. There were three other locations discussed as potential replacement sites. Kansas Department of Agriculture officials issued a statement congratulating Tennessee on the announcement. “We look forward to continuing to work with Tyson as they further evaluate expansion of their poultry business unit growth opportunities,” says Heather Lansdowne, KDA Communications Director. Tyson officials say they are still interested in building a production plant in Kansas but those plans don’t look to be happening in the near future.

Peterson Likes Senate Tax Bill Better Than House Version

House Ag Committee ranking member Collin Peterson says the Senate tax bill is closer to something he can support than the House Bill. The Minnesota Democrat hopes changes will be made so he can support the conference report. Peterson tells the Hagstrom Report that he supports lowering corporate tax rates but not at the expense of raising taxes on individuals. He also supports raising the exemption on the estate tax but not eliminating it. He wants the provision allowing co-ops to pass along production and marketing cost tax breaks to their members to continue. The current House and Senate bills both eliminate the provision, known as Section 199. “Co-ops don’t pay income taxes and therefore, if this is taken out, the co-ops get nothing from this bill,” Peterson says. “Also, the provisions to eliminate or reduce the deduction for the state and local taxes are a problem and I’ve heard about it from my constituents.” He’s in favor of eliminating the individual insurance mandate under the Affordable Care Act but says that cutting it out will make passing a tax bill that much more difficult. The White House has said the Trump administration understands that particular provision may have to be taken out of the legislation to pass the bill.

China Is The New Top Buyer of American Agricultural Goods

New numbers out this week show that China is the new number one buyer of American agricultural goods. Pork Business Dot Com says the fiscal year 2017 numbers show that China bought $22 billion worth of agricultural products, which is a large jump from the $19.2 billion purchased the year before. That jump meant China moved into the number one customer spot. America’s NAFTA partners were number two and three on the list. Second-place Canada bought $20.4 billion worth of goods, a slight jump over the previous year. Number three Mexico bought six percent more goods in the fiscal year 2017, coming in at $18.6 billion. USDA says the total number of exports jumped $10 billion dollars, coming in at $140.5 billion, the third-highest on record. Farmers produced another record corn crop and the protein sector continues to expand, so it’s going to take expanded exports to chew through the extra product that’s available.  Ag Secretary Sonny Perdue says the ag sector posted an annual trade surplus of $21.3 billion, an amazing 30 percent rise over the previous year. 

Updated Negotiating Objectives for NAFTA

The update includes some of the provisions that Mexico and Canada have both balked at or come out in opposition to, according to the release from the Office of the U.S. Trade Representative (USTR). One is a five-year “sunset review” mechanism that would automatically terminate the agreement unless all three countries decide to renew it.Of note, the updated negotiating objectives feature a reference to the idea. Trump's revised objectives mention a major goal of opening Canada’s market for dairy, poultry and eggs. The U.S. also included a provision related to cross-border trucking, with USTR adding a line calling for the ability to “retain flexibility for U.S. non-conforming measures," including for maritime and long-haul trucking services.Ag Cuts Proposed As Offset for Hurricane Aid 
The third disaster request from the Trump administration for hurricane aid totaled $44 billion and this time included suggested budget offsets. Some $3 billion in cuts for agriculture spending were offered as part of $59.23 billion in cuts to domestic programs to help pay for the aid.Most of the programs were already singled out for cuts in the Trump administration’s fiscal 2018 budget proposal including rural business loans, upgrades to federal research facilities, $3.9 billion from the Pell Grant surplus, $212 million from the Agricultural Research Service's building and facilities account, $800 million from the Special Supplemental Nutrition Program for Women, Infants and Children $204 million in emergency conservation funds, $1.4 billion in unobligated balances for mandatory conservation programs, which includes money set aside for future agreements under the Regional Conservation Partnership Program. However, lawmakers are not expected to go along with the proposed reductions.

Washington Insider: Tax Reform Battle Continues Behind Closed Doors

Bloomberg is reporting this week that the Republican tax-overhaul effort is in for a marathon debate on the Senate floor at the end of this month, with dozens of doomed Democratic amendments. But, it thinks that “the real action will be elsewhere, behind closed doors."Two parallel and largely private negotiations will determine the content of the bill that’s due for a full Senate vote as early as Nov. 30: One is aimed at getting about a half-dozen wavering GOP senators on board. The other will attempt to smooth the path for a final House-Senate compromise in December.Neither will be easy, Bloomberg says. GOP leaders must write a bill that can pass under the Senate’s strict budget rules while cobbling together 50 Senate votes without alienating the House GOP’s coalition of conservatives and moderates from high-tax districts. They’ll also have to avoid political land mines such as the divisive health-care debate that has divided Republicans for much of this year.House and Senate staff members are already working on ways to avoid a drawn-out process for reconciling their different legislation, said Neil Bradley, chief policy officer for the U.S. Chamber of Commerce. He said he’s bullish on the prospects for a compromise next month. “The fact that they have hit all of their marks so far, it is now more likely,” he said. Key questions include how to tax partnerships and other so-called pass-through entities and how to rewrite international tax laws to limit corporate tax avoidance, he said.Bill Hoagland, a former GOP Senate staff member who helped shepherd former President George W. Bush’s 2003 tax cuts through Congress, said he’s “totally convinced” lawmakers will try to fast-track the formal methods for resolving House-Senate differences -- like a “conference committee” in which members work out differences in a deliberative process. “A true conference committee would drag out into next year,” said Hoagland, now a senior vice president at Washington’s Bipartisan Policy Center, an independent research group.At the same time, Sen. Susan Collins, R-Maine, said this weekend that the Senate plan “needs work.”“I want to see changes in that bill, and I think there will be changes,” she said. Asked directly whether she can vote for the measure as written, Collins said, “I haven’t reached that conclusion yet.”If no Democrats vote for the Senate bill, Republicans can afford to lose only two votes and still pass it under Senate rules. Sen. Ron Johnson, R-Wis., has already said he can’t back the bill as written. And President Donald Trump yesterday warned on Twitter that Sen. Jeff Flake, R-Ariz., who is not seeking re-election, will "be a NO on tax cuts because his political career anyway is ‘toast’.”Collins said it was a “problem” for her if the provision to remove the individual mandate of the Affordable Care Act is repealed as part of the effort to overhaul U.S. tax law. “I don’t think that provision should be in the bill. I hope the Senate will follow the lead of the House and strike it.”However, that may be in the cards. Also on Sunday, Mick Mulvaney, director of the Office of Management and Budget, said that the White House would be OK removing the mandate if it is an “impediment” to passage of the Senate bill, although White House legislative director Marc Short said “we like the fact that the Senate has included it.”Well, time is winding down for the reforms, it seems—but the administration’s health concessions could mean progress. Still, this is incredibly complex legislation with broad implications for agriculture which produces should watch closely as it proceeds, Washington Insider believes. 

Fifth Round of NAFTA Talks Moving Slowly

The fifth round of negotiations on the North American Free Trade Agreement got off to a slow start and continue to move slowly this week. A source tells CBC dot com that negotiators have talked through a dozen topics but there hasn’t been much movement. However, that same source also says while progress has been slow, there haven’t been any fireworks behind the scenes, which is a change in tone from the last round in Washington D.C. During the previous round of negotiations, the U.S. tabled several proposals that Canada and Mexico objected to. The U.S. is reported to be frustrated because Canada and Mexico are hesitating to give counterproposals to U.S. positions on key issues. The U.S. has made several proposals that have been referred to as “poison pills.” For example, the Trump Administration wants to raise the made-in-America requirements in the auto sector, kill Canada’s supply management program in dairy, and restrict Mexican and Canadian access to U.S. government contracts. The CBC source said procurement was a topic during the discussions, with the U.S. showing no flexibility in its demand that Mexico and Canada’s access should be on a dollar-for-dollar basis.

Pro-Trade Republicans Unhappy with U.S. NAFTA Positions

Pro-trade Republicans are increasingly worried that the Trump Administration will pull out of the North American Free Trade Agreement, rather than negotiate a deal that keeps core benefits intact. As the fifth round of talks winds up on Tuesday, Pennsylvania Republican Charlie Dent says, “I think the administration is playing a dangerous game with the sunset provision.” He says the threat of NAFTA disappearing every five years makes it difficult for businesses in his district, which includes Hersey’s, to invest in supply chains and manage their operations. Business groups have said millions of jobs would be in jeopardy if tariff rates in Canada and Mexico revert back to what they were in the 1990’s. 74 House of Representatives members signed a letter to the administration this week opposing U.S. proposals on rules-of-origin which would require 50 percent U.S. content in NAFTA-built vehicles and 85 percent regional content. Representative Pete Sessions disagrees with the Trump approach of “trying to beat someone in the negotiations,” saying we need to offer a fair deal. Half of the $231 billion in exports from Texas goes to Mexico and Canada. “If we want them to take our cattle,” he says, “we need to take their avocados.”

Holiday Drivers Save by Choosing E-15 Fuel

Triple-A recently predicted a record number of drivers will be on the road for the Thanksgiving holiday. Growth Energy says those drivers could save up to $4 million by filling up with E-15. Growth Energy is encouraging drivers to take advantage of the value E-15 brings and go to Get Ethanol dot com to locate the nearest E-15 station while they’re on the road this weekend. “E15 is a great value anytime, but when families are traveling further to see loved ones for Thanksgiving, it gives them an opportunity to keep a little extra money in their pockets since E15 can cost up to 10 cents less than regular gasoline,” says CEO Emily Skor. “If every driver filled up with E15, it could mean savings of up to $4 million. That’s a reason to celebrate.” E15 is available at almost 1,200 locations in 29 states. America recently surpassed two billion miles driving with E15. Skor adds, “E15 is a good choice for engines and the environment, making it a better value all around.” E15 is approved for 2001 and newer vehicles, which make up about 90 percent of the vehicles on the road today.*

Census of Ag Helps Farmers Influence Future Policy

USDA Census of Agriculture forms will start showing up in farmers’ mailboxes in December. The national census is conducted by the National Ag Statistics Service every five years and it’s extremely important that farmers take time to respond. Barbara Ratner is the census and survey director at NASS and she says, “The census is aimed at getting a complete count of all farms, ranches, and the people who operate them. The census looks at land use and ownership, operator characteristics, production practices, income, and expenses.” The last Census of Ag found two million farms and ranches covering more than 914 million acres in America. The census is a critical item that gives farmers and ranchers a chance to influence future policy decisions. “This information is important to all those agencies that serve farmers, ranchers, and the rural communities they live in,” says Ratner. “Everyone from federal, state, and local government agencies to agribusinesses and trade associations all look at the numbers.” Federal law requires all agricultural producers to complete the census and requires NASS to keep all of the information private.  

Department of Transportation has placed a 90-day delay on the implementation of electronic logging devices for agriculture commodities

The Department of Transportation (DOT) has placed a 90-day delay on the implementation of electronic logging devices (ELD) for agriculture commodities.The announcement was made by DOT’s Federal Motor Carrier Safety Administration(FMCSA) at a briefing on Nov. 20. FMCSA still plans to move forward with the ELD rule on Dec. 18, 2017. ELDs are a record keeping device synchronized to a truck engine that logs information digitally. In real-time an ELD records data such as time spent on the road, miles driven, location and engine hours.A 90-day waiver for agriculture commodities will begin on Dec. 18 in an effort for FMCSA to evaluate issues revolving around the hours of service requirements. The primary concern for agriculture has come from livestock haulers.Organizations like the United States Cattlemen’s Association (USCA), the National Cattlemen’s Beef Association (NCBA), the National Pork Producers Council (NPPC) and the Livestock Marketing Association (LMA), have questioned the hours of service mandates affiliated with the ELD.“The ELDs regulation poses some serious challenges for livestock haulers and the animals in their care,” says NPPC President Ken Maschhoff, a pork producer from Carlyle, Ill. “This waiver will give the department time to consider our request that truckers transporting hogs, cattle and other livestock be exempt from the ELDs mandate.”Under the ELD rule, truckers have an hours of service limit of 11 hours of driving in a 24 hour period. Drivers can be on-duty a total of 14 hours consecutively, including the 11 hours of drive time. After 11 hours are reached, drivers must rest and be off-duty for 10 consecutive hours.The hours of service stipulations make it difficult to transport livestock long distances without either stopping to unload midway at holding facilities or keeping livestock in the trailer for the 10 hour wait time. Another option to stay within regulations would be using teams of drivers, but there has been a shortage of drivers, especially for livestock transportation.FMCSA plans to have a comment period in the coming weeks to seek guidance on a potential hours of service exemption for agriculture commodity transport. The government organization will also help clarify the 150 air mile exemption and the related hours of service.“We look forward to continuing this dialogue with the agency to provide relief for transporters from the restrictive hours of service rules, a regulatory burden that will have a severe impact on the ability of livestock haulers to continue to do business in a way that is both economically feasible and ensures the utmost consideration for animal welfare and safety,” Lia Biondo, director of policy and outreach at USCA.FMCSA says in a statement, “Public participation in this guidance is essential to the process, so we ask for continued engagement from all impacted stakeholder groups across industries.” 

Warnings on PAYGO Impacts to Farm Programs Likely Overblown

Some Democratic lawmakers, a National Farmers Union official and others have warned the Republican tax-reform plan could devastate U.S. farm programs.Those citing that concern are noting a Congressional Budget Office (CBO) analysis in their warning that the increase in the federal budget deficit allowed by the GOP tax proposals could devastate farm programs. The CBO analysis concludes the programs subject to the automatic cuts are not large enough to accommodate the $136 billion in cuts that would have to be made. “That would be a disastrous trade,” said National Farmers Union (NFU) President Roger Johnson.As for those contentions that the PAYGO requirements could have a major impact, House Ag Chairman Mike Conaway, R-Texas, said while spending cuts would be “devastating,” he was confident Congress would waive the budget rules. That is what Congress has done many times, both those led by Republicans and Democrats.Since its enactment in 2010, Congress has waived Statutory PAYGO requirements 29 times in which the budgetary effects, in whole or in part, were excluded from the PAYGO scorecards, according to a Congressional Research Service memorandum. And, both political parties have waived PAYGO when they have been in the majority, and it’s been waived with bipartisan majorities, and often times by unanimous consent.Based on history, Republicans feel that this should be a perfunctory exercise. 

Activists sue for records of wolf killings

SPOKANE, Wash. (AP) — An environmental group is suing the Washington Department of Fish and Wildlife for access to some public records on wolf deaths in the state.

The Center for Biological Diversity is seeking records about the killing of a wolf from the Smackout Pack this summer and the killing of nearly the entire Profanity Peak pack in 2016.

The lawsuit was filed Tuesday in Thurston County Superior Court.

“The public has every right to know how and why wolves are being killed in Washington,” said Amaroq Weiss, wolf advocate for the center. “It’s frustrating that state wildlife officials won’t come clean with the full details on these lethal operations.”

Bruce Botka, a spokesman for the Department of Fish and Wildlife in Olympia, said the agency did not comment on the filing of legal complaints and had not yet reviewed the lawsuit with attorneys.

Wolves are listed as endangered by the state in the eastern third of Washington, where they are relatively abundant, and have federal endangered species protection in the western two-thirds of the state.

Gray wolves were hunted to extinction in Washington early in the past century. But the animals started migrating into the state in the early 2000s from Idaho and Canada.

At the end of 2016, the state estimated there were a minimum of 115 wolves, 20 packs and 10 successful breeding pairs in the state. All of the documented wolf packs are east of the Cascade Range.

The state has killed 18 wolves since 2012, the center said.

This summer, the state issued new rules that allow the Department of Fish and Wildlife to move more quickly when a wolf pack begins preying on livestock.

Under the new rules, a hunt can be initiated if there are at least three attacks by wolves on livestock within 30 days, or four events within 10 months, including one that was not confirmed to be caused by wolves. The previous rules allowed a hunt only after at least four confirmed attacks by wolves over a year or six over two years.

The state rules also require the expectation that attacks will continue, and that the killing of problem wolves is not expected to harm the animals’ ability to reach statewide recovery goals.

On June 30, a wolf from the Smackout Pack was killed by a ranch hand, the center said. The Department of Fish and Wildlife reported that the wolf was caught in the act of attacking livestock and that the killing complied with state law.

But the department has so far refused to release documents related to the killing or subsequent investigation, the center said.

Last week, the agency announced that another wolf was killed on Oct. 27, again allegedly while caught in the act of attacking livestock, the center said.

“Each gray wolf killed in Washington makes state wildlife officials’ lack of transparency all the more troubling,” Weiss said.

The agency has also failed to turn over records sought by the center about the 2016 killing of the Profanity Peak Pack in response to livestock depredations, the center said.

EPA Formally Proposes Delay for WOTUS Rule

A delay for the effective date of the Waters of the U.S. (WOTUS) rule is formally being proposed by the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers, according to a document submitted for publication in the Federal Register.Delaying the effective date until two years after a final rule on the proposal would "maintain the status quo by proposing to amend the effective date of the 2015 Rule and thus provide continuity and regulatory certainty for regulated entities," the notice said. EPA had previously signaled they would delay the effective date of the WOTUS rule, and the action announced today formalizes that effort.The move comes as the agencies look to rework or scuttle WOTUS, and after its implementation was stayed nationwide in October 2015 by the U.S. Court of Appeals for the Sixth Circuit. The 2015 WOTUS rule sought to redefine waterways under the Clean Water Act (CWA).In its proposal, the agencies cited President Donald Trump's February executive order, which instructed them to review the 2015 rule.Given the move, and the previous stay, the previous definition of "Waters of the U.S." that existed prior to the issuance of the 2015 rule would remain in effect until EPA is able to promulgate a replacement. Comments on the proposed delay will be accepted for 21 days following its publication in the Federal Register.

Washington Insider: Administration’s Controversial Trade Approach

Well, the President returned from his recent Asian trip claiming success, in spite of numerous skeptics, including many deep within his Republican supporters. For example, the New York Times reported that the President’s “isolationist approach to trade” is rattling what little uneasy peace remains within the party. It calls administration trade policies “at odds with longstanding conservative orthodoxy about the benefits of free and open markets.”Republicans have long believed that by allowing markets to operate unhindered, nations can boost domestic industries, lift their wages and improve living standards, the Times says. But that view is not shared by Trump whose approach is “sowing concern among many Republicans and business groups that the United States will wind up on the losing end of an integrated global economy.”Trump said he told other leaders as he traveled across Asia that his tougher approach had begun to take effect, and that nations around the world have renewed respect for the United Sates.Nevertheless, “he appears to have returned from the trip empty-handed, without any new trade deals in process,” the Times said. At the same time, several of the nations he visited announced they were moving forward with the Trans-Pacific Partnership, an 11-country trade deal that had support from Republicans but which Trump jettisoned during his first days in office.As a result, Republicans and business groups “are now warily eyeing talks over the North American Free Trade Agreement, which resumed again this week against the backdrop of Mr. Trump’s get-tough talk,” the Times said. The White House could soon be forced to decide whether to accept minor changes to the accord in a face-saving gesture or withdraw entirely, “since neither Canada nor Mexico shows signs of bending.”Canadian and Mexican negotiators believe that renegotiating the pact to more heavily favor the United States would cost them politically at home — and that, even if they agreed to Trump’s demands, the United States Congress would not approve them.The Times sees the new fissures over trade as a product of a surge in populism on both the political right and left.Growing anxieties about the unforeseen costs of globalization, the overhang of the financial crisis and the stagnation of the middle class have deeply damaged voters’ faith in the ability of free markets to deliver prosperity — and fractured the Republican Party in the process as conservative populism has become increasingly ascendant, while free market Republicans have been left increasingly marginalized, the Times says.NYT also points to a new poll by the Pew Research Center that says Republicans are now more likely than Democrats to say that NAFTA is bad for the United States. The opinion of Republicans toward free trade has worsened sharply since the George W. Bush administration, when the party was more likely than Democrats to describe trade, in general, as a good thing.While free trade has been broadly beneficial to the United States, politicians and business leaders in past decades oversold its potential to benefit all, Stefan Selig, a former trade official in the Obama administration, said. The benefit to the average American of being able to buy cheaper products was no match for the concentrated damage that global trade — in addition to forces like automation — has wrought in some American communities.The Trump campaign appealed to voters by advocating a heavier hand to prevent further damage from trade, including the use of tariffs on foreign products and renegotiating trade pacts.However, pushback from this political realignment has grown, NYT says, as the business community, a traditional ally of the Republican Party, has increasingly protested the president’s plans to rewrite NAFTA, the Times said.Some Republicans, including those from farming and border-states, have protested the president’s threats to withdraw from NAFTA arguing its loss would deeply harm their constituents.However, the Times concludes that responses from other quarters — including congressional leadership — has been surprisingly muted, given how deeply the president’s actions contradict the Republican Party’s longstanding faith in freer trade, and the intensity of opposition form well established markets to potential losses.Now, the Times says that trade advisers are reporting that congressional leaders are pressing the United States trade representative, who handles the negotiations, behind the scenes. Still, most have not been willing to create an open rift with the president on trade that could put at risk their current efforts of reforming taxes, said Phil Levy, a senior economist for trade during the Bush administration.“There is little enthusiasm among congressional Republicans for open conflict, but that doesn’t make the tensions go away,” Levy said.So, the Times report is moderately bad news for the ag sector, it seems. It also argues for intensification in the already active opposition by ag leaders to the administration’s anti-NAFTA leaders who seem to ignore the looming reality of damage to important markets from a weakened or terminated NAFTA, Washington Insider believes.

Farm Groups React to House Passage of Tax Reform

Farm groups offered a mixed reaction to House passage of a tax reform package. The American Farm Bureau Federation called the action a “step closer to a tax code that works for all farmers and ranchers.” The National Cattlemen’s Beef Association called the passage a “step in the right direction,” noting specifically the language within the package that would immediately double the death-tax exemption and put the tax on the path to extinction in five years. However, NCBA also expressed concern that the reform package would significantly limit the ability of some businesses from deducting their interest expenses. The National Council of Farmer Cooperates called passage of the bill “unfortunate,” as the organization says the reform package will raise taxes on farmers and co-ops across the country by eliminating the Section 199 deduction. And, The National Farmers Union said it was "alarmed" by the passage because the legislation would jeopardize farm bill funding, while increasing the federal debt and harming farmers and ranchers.

Ag Coalition Stressing Importance of NAFTA

A coalition of agriculture groups is stressing the importance of the North American Free Trade Agreement to state governors. The coalition representing more than 100 agriculture groups is asking the governors to let President Trump know that they “support a modernized NAFTA that maintains and enhances food and agricultural trade,” according to the Hagstrom Report. The letter comes as U.S. Trade Representative Robert Lighthizer complained earlier this week about agriculture groups lobbying regarding NAFTA, saying the public comments “makes the negotiations harder.” Meanwhile, top trade officials from Canada and Mexico, along with Lighthizer of the U.S., have chosen not to participate in the current round of NAFTA negotiations. In a joint statement, the trade officials said they would not attend so negotiators can continue to make progress on key chapters discussed during the last round of talks.

Senator Urging Farmers to Stand Up for NAFTA

Republican Senator Jerry Moran (more-ran) penned an open letter to farmers and ranchers this week asking them to “do more” regarding concerns surrounding the North American Free Trade Agreement. The letter urges farmers, farm groups, and others, to “raise their concerns” with President Trump. He challenged the industry to do so via op-eds, letters, social media campaigns, and other venues about the importance of trade. Moran says the voice of lawmakers raising alarm only goes so far, adding that “the real power to change the conversation lies with the American people. The senator wrote that he is convinced the U.S. is headed down a path toward withdrawal from NAFTA unless action is taken by agricultural groups to change the administration’s course. Also, Moran stated he was impressed with the knowledge and conviction exhibited in defense of agricultural trade so far.

U.S. Farm Exports Hit Third Highest Level on Record

Agriculture exports totaled $140.5 billion in fiscal year 2017, climbing nearly $10.9 billion from the previous year to the third-highest level on record, according to Agriculture Secretary Sonny Perdue. The Department of Agriculture announced the findings Thursday, saying that as it has done for well over 50 years, the U.S. agricultural sector once again posted an annual trade surplus. The trade surplus reached $21.3 billion, up almost 30 percent from last year’s $16.6 billion. China finished the fiscal year as the United States’ largest export customer, with shipments valued at $22 billion, followed closely by Canada at $20.4 billion. U.S. agricultural exports to Mexico reached $18.6 billion, a six percent gain from last year, while exports to Japan grew 12 percent, to $11.8 billion. USDA says exports are responsible for 20 percent of U.S. farm income, also driving rural economic activity and supporting more than one million American jobs both on and off the farm.*

Study Says Ethanol Production Creates More Carbon Emissions

A study by the University of Wisconsin says carbon emissions increase when land is converted into crops for ethanol. The study released this week says the carbon emissions increase since the ethanol mandate in 2007 is equivalent to 20 million new cars driving on American roadways every year. The Milwaukee Journal Sentinel reports the study underscores the unintended consequences of a federal policy meant to reduce America's reliance on fossil fuels. While adding ethanol means burning fewer fossil fuels, the study found that the benefits were lost as even greater amounts of carbon held in the soil were released into the atmosphere in newly cultivated farm fields. The study noted major land changes between 2008 and 2012, and the shifting of more than seven million acres into cropland. The Renewable Fuels Association responded to the study, saying the results were “grossly overstated." The association pointed out that corn production has fallen more than three percent between 2007 and 2017, while production per-acre increased by 16 percent over that time.*