More Refinery Waivers Filed; Ethanol Industry Concerned

The Environmental Protection Agency recently released a list of updated data on several small-refinery hardship waivers filed under the Renewable Fuels Standard. Ethanol Producer Dot Com says seven new waivers have been filed for the 2018 compliance year. One new petition for 2017 compliance has also been added to the list. All of the waivers were filed between November 10 and December 18. As of December 18, the EPA has received 22 waiver requests for the 2018 compliance year. That’s up from the petitions that were filed between November 10 and December 18. For 2017, EPA has received a total of 37 small refinery petitions, up from the 36 it had received by November 10. The agency has approved 29 petitions so far, with seven still currently pending and one declared ineligible or withdrawn. The 29 petitions that have been approved so far have exempted roughly 1.46 billion renewable identification numbers (RINs), keeping just over 13.6 billion gallons of gasoline and diesel from meeting the RFS blending targets. A coalition of ethanol-related groups recently filed a lawsuit against the EPA over the small-refinery waivers. Brian Jennings of the American Coalition for Ethanol says the coalition believes the EPA is abusing the hardship waivers.

Trump Weighing NAFTA Cancellations to Push USMCA Through Congress

President Donald Trump and his advisers are said to be considering canceling the North American Free Trade Agreement to help push the U.S.-Mexico-Canada Agreement through Congress. A ProFarmer report says if the move gets made, it may present Congress with a hard choice to make. Marc Short is a former White House Director of Legislative Affairs who says, “It could be that he withdraws from NAFTA even before USMCA ratification gets to Congress. I think there’s a high probability of that, yes.” If the U.S. does end up withdrawing from NAFTA, it would take six months to go into effect. That gives Congress a deadline of six months to either approve USMCA or have tariffs slapped on about $1.3 billion worth of goods traded between the U.S., Canada, and Mexico. Emily Davis, a spokesperson for the U.S. Trade Representative, says they’re very confident that Congress will eventually approve NAFTA. “From the beginning, U.S. Trade Representative Robert Lighthizer has worked closely with Democrats and Republicans in the House and Senate while renegotiating the agreement,” says Davis Speculation is that the Democratic-controlled House will take up the agreement around March or April.

VA Tech Ag Economist Recaps 2018

The economic book is closing on 2018, and Dr. David Kohl, Professor Emeritus at Virginia Tech University, said several elements shaped the landscape. In an article written for Corn and Soybean Digest, he said the agriculture industry is in the sixth year of what he refers to as a reset, also known as a “grinder.” He says the elongated poor economic conditions are taking a serious toll on the well-being of those involved in the ag industry. Some segments are facing more difficulty than others. A good example is the dairy industry, into its fourth year of low prices, leading to a serious loss of equity and producers exiting the industry. Production in the pork and poultry industries has greatly expanded. The result is a large supply of product on hand, what economists are calling a “Great Wall of Protein.” International trade agreements and stronger domestic demand will be important moving forward into the new year. The beef industry has led the way with an increase in demand after years of decline. However, the demand increase is showing signs of growing softer. The grain and crop sector had good production but not good profits. The health of the U.S. economy, the status of international trade agreements, and the strength of the U.S. dollar will all be keys to moving ahead in 2019 and beyond.

Shutdown Resolution Likely Won’t Happen Before January

In spite of the fact that the House and Senate were in session late in the Christmas week, House members were told there wouldn’t be any votes. The Hagstrom Report says that makes it likely that resolving the partial government shutdown won’t happen until the new Congress is in place and the Democrats take over the House of Representatives on Thursday, January 3rd. The Senate will convene briefly on Monday, December 31st, and won’t be back in session until Wednesday, January 2nd. They’ll resume consideration of the House Message to Accompany H.R. 695, the legislative vehicle for the continuing resolution. The Agriculture Department, the Food and Drug Administration, and the Commodity Futures Trading Commission are all reduced to essential services. However, the Farm Credit Administration is open for business because it’s funded through fees rather than any taxpayer funds. The shutdown is going on because President Trump wants Congress to include $5 billion in funding for a border wall between the U.S. and Mexico. Politico says Incoming Speaker of the House Nancy Pelosi can either pass a full-year continuing resolution, pass a six-bill funding package, as well as a continuing resolution for Homeland Security, or pass the stopgap bill the Senate passed. All of those options result in Trump getting $1.3 billion for border security, not the $5 billion he wants.

Judge Sides With White House on Packer Rules

Appellate Judges with the Eighth Circuit Court of Appeals have sided with the USDA on packer rules. The judges ruled the agency was not “arbitrary and capricious” in withdrawing an interim final rule that would have made it easier for farmers and ranchers to sue meatpackers on claims of unfair treatment. The court denied a petition by the Organization for Competitive Markets to review the decision. The OCM contends that USDA violated a congressional mandate given in the 2008 Farm Bill to publish a regulation outlining criteria around contracting practices by June 2010. OCM filed the lawsuit after USDA, under the new Trump Administration, withdrew the final interim rule, known as the Farm Fair Practice Rules, which were implemented at the end of the Obama Administration in 2016. The interim rule would have made it much easier for farmers and ranchers to prevail in cases where they claim that packers treated them unfairly in contracts because it would have all but eliminated the need for the plaintiffs to prove competitive harm. A Meating Place Dot Com article says implementing the Farmer Fair Practice rules would have represented a change in USDA regulatory approach. It would have also conflicted with the courts’ historical interpretations of the Packers and Stockyards Act.

American Farm Bureau Offering Paid Internships Next Summer

The American Farm Bureau is accepting online applications for five paid summer internships through January 7th. The internships will run from mid-May through mid-August, depending on schedules, and last between eight and 10 weeks. Farm Bureau prefers internships begin no later than June 10. Interns will be supervised by an intern coordinator within their assigned departments and will also be responsible for their own housing. Students should have at least completed their sophomore year of undergraduate education, preferably with a major in agriculture or public policy-related field. The skill level for the internships is perfect for undergraduate students. Farm Bureau is accepting applications for intern positions in the Business Operations and Revenue Development; communications; Leadership, Education, and Engagement; Public Policy – Economic Analysis; Public Policy – Legislative. Interested applicants can find more information about how to apply online at www.fb.org and follow the links through the career tab. Again, Farm Bureau is accepting those internship applications through January 7th, 2019.

President Trump and his advisers are weighing whether to cancel the North American Free Trade Agreement

President Trump and his advisers are weighing whether to cancel the North American Free Trade Agreement (NAFTA) to force through the U.S.-Mexico-Canada Agreement (USMCA). Jim Wiesemeyer of ProFarmer said if this move is taken, it would present Congress with a hard choice. “It could be that he withdraws [from NAFTA] before [USMCA ratification] even reaches Congress,” said Marc Short, former White House director of legislative affairs. “I think there’s a high probability of that, yes.” Wiesemeyer said if the U.S. formally withdraws from NAFTA, Trump would set a hard deadline of six months for Congress to approve the USMCA or face having tariffs reintroduced on substantial portions of the approximately $1.3 trillion worth of trade between the U.S., Canada and Mexico. Congress will have to make a choice of the USMCA or pre-NAFTA, which worked very well, Trump said. “We are very confident that Congress will approve USMCA,” said Emily Davis, a spokesperson for the U.S. Trade Representative, in a statement provided by the White House press office. “From the beginning, Ambassador (U.S. Trade Representative Bob) Lighthizer has worked closely with Democrats and Republicans in the House and Senate on the renegotiation of this agreement.” At this juncture, Wiesemeyer said the Democratic-controlled House will likely wait to consider the USMCA, with some earmarking the March-April timeframe at the earliest. Before that occurs, Democrats will insist on several enforcement mechanisms relating to environmental and labor provisions embodied in the USMCA. Tariffs Continue to Affect Pork Industry Bill Even, CEO of the National Pork Board, said the retaliatory tariffs are continuing to impact the pork industry. "We're still moving product internationally, but we've seen two things," Even said. "The product moves to different markets, for example South Korea is a great bright spot, but then we've seen the price of product decline equivalent to the tariff. In other words, we move a lot of ham to Mexico, and there's a 20 percent tariff. Guess what - the price of ham to Mexico dropped roughly 20 percent." President Trump joined the leaders of Mexico and Canada in signing the USMCA on Nov. 30 in Buenos Aires

New Zealand is working on being the first country to rid itself of Mycoplasma bovis by killing up to 100,000 cows from its herd of 6.5 million dairy cattle and 3.5 million beef cattle

An eradication program in New Zealand is working to rid the country of the cattle disease Mycoplasma bovis, and as a result 50,000 cows have been culled with nearly as many still to be killed. If the program is successful New Zealand would become the first country to rid itself of the disease.
Thus far, there have been 50,000 cows culled and the program was slated to eliminate up to 100,000 head. While M. bovis doesn’t pose a risk to consumers of beef or dairy the government and industry have spearheaded an eradication program because of the costly implications of an outbreak to the domestic herd. The bacterial disease results in a number of conditions in cattle like mastitis, pneumonia, abortions and lameness. On Dec. 17, government officials were touting the success of the program. “At this stage I have confidence the approach we are taking to eradicate is the right one and we remain committed to this,” says Prime Minister Jacinda Ardern. When the program was originally announced it the government expected 126,000 cows to be culled. The figured has been backed down to 100,000 head. The government is funding approximately 68% of the response, while industry is accounting for the remainder. “Based on all the evidence presented to us, we are confident that eradication is possible and that we are on track in what’s a world-first but necessary action to preserve the value of our national herd and economic base,” adds Agriculture Minister Damen O'Connor. Cattle are an important part of New Zealand’s agriculture economy. Beef exports came in at more than $2 billion (NZ$3 billion) for the 2017-18 season, up 14% from the previous time period. Dairy is even more valuable with $11.87 billion (NZ$16.667 billion) worth of products exported from the country in the first six months of 2018. Industry groups have been encouraged by the success of the program. “We are cautiously optimistic, and still have fingers and everything else crossed,” says Federated Farmers dairy chair Chris Lewis. “It would be a massive achievement to beat the disease.” DairyNZ has been appreciative of the work that has been done and believes farmers will benefit in the long run. “It hasn’t been easy for the 1,000 farmers affected, whether they were under active surveillance or restriction, or the disease was found on their farm. DairyNZ is here to support our farmers and we are actively involved every day in managing this disease out of New Zealand, whether it’s providing advice on biosecurity measures on farm, or through the on the ground teams supporting impacted farmers,” says Jim van der Poel, DairyNZ Chair. Officials from DairyNZ and Beef + Lamb New Zealand are planning to have consultations with farmers in late January to get feedback on the program. “The progress so far illustrates the value of a collaborative approach to fighting M. bovis with government and industry working in partnership,” says Beef + Lamb New Zealand Chairman Andrew Morrison. “Our view has always been that eradication was only on the table for a limited time and once it was off the table, it would be off forever, so we had to give this a go.” M. bovis was first discovered on the South Island of New Zealand in July 2017. New Zealand is home to approximately 6.5 million dairy cattle and 3.5 million beef cattle.

Cattle feeding and packer profit margins were mostly steady the week ending December 21

Cattle feeding and packer profit margins were mostly steady the week ending December 21, with cash prices for fed cattle slightly higher. Cattle feeders saw average profits of $31 per head, down les than $1 from the previous week. Packer margins averaged $141 per head, an increase of $4 per head, according to the Sterling Beef Profit Tracker. Cash cattle prices were $119, about 70 cents per cwt. higher. The beef cutout was nearly steady at $211.62. The cost of finishing a steer last week was calculated at $1,600, which is $10 higher than the previous week and $5 higher than the same week a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore. A year ago cattle feeders were earning an average of $48 per head. Feeder cattle represent 71% of the cost of finishing a steer compared with 73% a year ago. Farrow-to-finish pork producers saw their margins slip $1 to average losses of $27 per head. Lean carcass prices traded at $46.71 per cwt., $1.53 per cwt. lower than the previous week, and $6.45 lower than a month ago. A year ago pork producer margins were at breakeven. Pork packer margins averaged a profit of $43 per head last week. Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2018 will average $162 per cow. That would be steady compared to the $164 estimated average profit for 2017. Estimated average cow-calf margins were $176 in 2016, and $438 per cow in 2015. For feedyards, Nalivka projects an average profit of $21 per head in 2018, which would be $160 less than the average of $181 per head in 2017. Nalivka expects packer margins to average about $168 per head in 2018, up from $120 in 2017. For farrow-to-finish pork producers, Nalivka projects 2018 profit margins will average a profit of $2.50 per head in 2018, compared to profits of $21 in 2017. Pork packers are projected to earn $19 per head in 2018, down from $25 profit per head in 2017.

Timeline Murky for Lifting US Metal Tariffs

Despite President Trump and others in his administration pledging steel and aluminum tariffs would be lifted for Mexico and Canada when a new NAFTA accord was signed, no such move came after the three countries agreed to the U.S.-Mexico-Canada Agreement (USMCA). U.S. officials now say signing the new USMCA is not enough. They also want Canada and Mexico to agree to new quotas on their metals exports to the U.S. before the U.S. will lift the Section 232 tariffs. Canada is the largest foreign supplier of steel to the U.S., with a 20 percent import share. The U.S. goal of quotas would be to limit steel supply to keep domestic steel prices high. Meanwhile, the U.S. dairy sector has consistently stressed importance of lifting the metal tariffs on Canada and Mexico. While the USMCA opens a slightly larger share of the Canadian dairy market to U.S. producers, Mexico remains the largest destination for U.S. dairy exports. U.S. dairy products face a 25 percent tariff in Mexico imposed in retaliation for the steel and aluminum tariffs. The small gains USMCA brings U.S. dairy in Canada may not make up for the export losses to Mexico, a point backed up in a November analysis by the Farm Foundation. Concerns over the uncertainty and ongoing hardship associated with the metals tariffs has some in Congress looking at legislation that would rein in President Trump's ability to implement Section 232-related (national security) trade constraints.

Partial Shutdown Likely To Continue Into 2019

It is now a near certainty that the partial government shutdown will enter a second week, and very likely drag into the new year. Congressional Democrats and the White House remain at loggerheads over President Donald Trump's insistence on funding for a wall along the U.S.-Mexico border. Senate Minority Leader Chuck Schumer, D., N.Y., rejected the latest White House offer, saying the two sides remained far apart. Spending bills require 60 votes to clear procedural hurdles in the Senate, where Republicans hold a slim 51-49 majority, giving Democrats leverage in the talks. Rep. Steve Scalise, R., La., the majority whip, told House members on Wednesday that no votes were expected for the rest of the week. Meanwhile, on Thursday the Senate adjourned until next week. "We have not been able to reach agreement, with regards to the leadership on both sides," Sen. Pat Roberts, R., Kan., told reporters Thursday following a short Senate session. "In Dodge City, Kansas, they say a horse divided against itself cannot stand. That's about where we are." If the shutdown lasts until the new Congress begins on January 3, Nancy Pelosi, D., Calif., the Democratic leader who is likely to regain the speakership, is expected to move quickly to pass a spending bill extending to February 8 with no border wall funding and send it to the Senate. If the likely Pelosi measure clears that hurdle, it would still need to be signed by the president to end the impasse. "She could pass a very liberal spending bill with Democrat-only votes and probably find enough Republicans to go along in the Senate but it will be met with a less than enthusiastic response in the White House," Rep. Mark Meadows, R., N.C., said in an interview with the Wall Street Journal.

Washington Insider Trade Policy Summit Planned

Well, observers are laser-focused on the next step in the trade fight with China planned for early next month in Beijing. A key part of the discussion is the "concerted efforts to end the standoff with the U.S.," by the Chinese, who remain "uncertain that their efforts will be satisfactory," Bloomberg says this week. Since Presidents Xi Jinping and Donald Trump came to a temporary truce almost a month ago, China has removed a retaliatory duty on U.S. automobiles and is drafting a law to prevent forced technology transfers. It's also slashed import tariffs on more than 700 products and began buying U.S. crude oil, liquefied natural gas and soybeans again. Officials also have been in constant contact "with the U.S." to try to determine what else is needed to move things forward in January, Bloomberg says. It appears to Chinese officials that the U.S. itself isn't clear on what it wants, Bloomberg adds. China wants the U.S. to remove the punitive tariffs that have been imposed and not add new ones. However, it suspects the U.S. will ask for more before it agrees to do that, Bloomberg says. Officials are working on alternative retaliatory measures in case the talks collapse. "After the meeting in Argentina, the incentive for China to speed up opening up and reform has increased," said Lu Xiang, an expert in bilateral ties at the state-run Chinese Academy of Social Sciences in Beijing. "The key obstacle to a deal is whether the U.S. demands are a bottomless pit." The newly announced measures are responses to the "appropriate U.S. concerns," he said, using the term in the Chinese truce statement which referred to some of the issues the U.S. has raised. China's flurry of policy announcements since the Argentina meeting between Trump and Xi happened despite Canada's arrest of a top Huawei Technologies executive as requested by the U.S. and a fiery speech Xi made declaring "China wouldn't be dictated to by anybody." China underscored its determination to implement the agreement by including it as a key segment in an important annual policy statement published last week. Deputy U.S. Trade Representative Jeffrey Gerrish will lead the Trump administration's team heading to Beijing the week of Jan. 7, Bloomberg said. The group will also include Treasury Undersecretary for International Affairs David Malpass. China's Ministry of Commerce spokesman Gao Feng confirmed in a regular briefing Thursday in Beijing that the two sides planned to sit down for talks next month. Gao provided no date and said both countries continue to maintain close communication. News of the talks was followed by a potential source of renewed strain: a Reuters report saying Trump might declare a national emergency next month that would ban U.S. companies from using telecommunications equipment made by Huawei and ZTE Corp. Asked about the report Thursday, Chinese Foreign Ministry spokesman Hua Chunying said a "certain country" needed to address cybersecurity concerns with facts and stop politicizing national security issues. China is eager to seal a deal while at the same time it is intent on preserving its economic system, said Jonathan Fenby, chairman of China research at TS Lombard in London. It aims to give Trump enough to be able to claim victory by March, enabling it to get on with the business of modernizing its economy, he said. The U.S. administration has agreed to put on hold a scheduled increase in tariffs on $200 billion in annual imports from China while the negotiations take place. Trump is pushing the Asian nation to reduce trade barriers and stop the alleged theft of intellectual property. The delay in tariffs is through the start of March. In response, China temporarily lowered tariffs on U.S. car imports for the same period. China's significant recent efforts to unveil policies that address Trump's concerns have been underappreciated in the U.S., said Wang Huiyao, an adviser to the State Council, or cabinet. China has shown it wants to make a deal, but it can't meet all the U.S. demands, he said. After the recent U.S. stock market's plunge, the U.S. should quit the trade row "while it's still ahead," said Wang, founder of the Center for China and Globalization, a Beijing-based think tank. There's still skepticism about the prospects for an agreement. China thought it had a deal in May, only for President Trump to back out. Some in Beijing warn the same could happen again. If there is an agreement, it would just be a framework deal, according to Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation affiliated with the Ministry of Commerce. "Trump showed no spirit of respecting contracts in the past, and I suspect he will do so again this time. Will he backtrack even after a deal is inked?" So, we will see. These are important talks -- and the trade fight is increasingly seen as having very important implications for both sides. Clearly, these discussions should be watched closely as they proceed, Washington Insider believes.

FSA Offices To Close After Friday

WASHINGTON (DTN) -- Despite a partial government shutdown that includes Agriculture Department offices, Farm Service Agency county offices remain open through Friday. The FSA offices are staying open using money appropriated in prior years that can be carried forward. FSA can continue to serve customers until that money is used up. FSA county offices are accepting applications for the Market Facilitation Program that makes payments to farmers in reaction to the retaliatory tariffs that have led to reductions in U.S. farm exports. Farmers do not need to have finished harvest to sign up, and have until May 1 to certify production. FSA noted that the signup for the MFP ends on Jan. 15. After Friday, it appears that FSA county offices will be closed until Congress and the Trump administration reach an agreement to end the shutdown. FSA urged farmers to call their local office to make sure it is open before making the trip. Farm loan services will be limited, FSA said.

U.S. and China Will Be Face-To-Face in January

Two people familiar with the matter tell Bloomberg that U.S. officials will travel to Beijing on January seventh to talk trade with Chinese officials. Deputy U.S. Trade Representative Jeffery Gerrish will lead the Trump Administration’s team to China for the talks. A Chinese Ministry of Commerce spokesman did confirm that the two sides will get together in January but didn’t provide a specific date for the talks to take place. The January meeting will be the first time the two sides have held face-to-face discussions since President Trump and Chinese President Xi (Zhee) Jinping agreed to a 90-day truce during da meeting in Argentina. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) did tell Bloomberg the two sides have had phone discussions since then. Bloomberg says the meeting adds to signs that the two largest economies in the world are cooling off trade tensions. Beijing recently announced a third round of tariff cuts, lowering the duties on more than 700 goods starting January first. Two people in Beijing with knowledge of the discussions told Bloomberg that China isn’t clear on exactly what the U.S. wants. President Trump has agreed to hold off on $200 billion in additional tariffs while negotiations are taking place.

Trade-Aid Payment Deadline May Need To Be Extended

The majority of the U.S. Department of Agriculture hasn’t been disrupted by the partial government shutdown yet. If the dispute between Congress and the White House drags on, it could potentially affect how quickly the second round of trade aid payments get to farmers. Farm Service Agency offices remain open through Friday (today). That’s when money appropriated in previous years runs out. Farm Journal says if the standoff continues into January, it will more than likely affect the timing of at least a portion of the MFP payments. The article says if the dispute does drag on into early January, FSA will likely have to extend the application deadline for those payments, which is currently January 15th. That would be one consequence of any potential work stoppage at USDA. There are also some major reports that could be disrupted if the shutdown drags on. USDA would not get to issue some major reports, including the daily export sales numbers. That means it will have an impact on some major agricultural data.

South American Soybean Production May Put a Damper on 2019 U.S. Exports

Upcoming trade negotiations between the U.S. and China in January and the possibility of trade conflict resolution rallied prices after the G-20 summit in Argentina. However, Todd Hubbs of the University of Illinois says changes in the export market look to be minimal in the months ahead, even with China buying more beans from the U.S. “The potential for strong South American soybean export competition in the marketing year is the limiting factor in expanded U.S. soybean exports,” says Hubbs, an agricultural economist. “That’s in spite of any possible trade resolution with China.” The USDA World Production report estimates crop production in the major South American soybean-producing countries to be 7.02 billion bushels. Hubbs says that forecast is likely lower than what the real final number will be, due in large part to optimum growing conditions in Brazil. Overall, Hubbs says the prospects for a large South American soybean crop look very good, on top of an already excellent U.S. crop.

NASS Collects Nearly Half-Million Census of Ag Questionnaires Online

The National Ag Statistics Service wrapped up its Census of Agriculture collection in 2018. The agency plans to release the new up-to-date Census data in 2019. “Over the course of 2018, NASS conducted the single-largest federal agricultural data collection in the United States with an improved questionnaire and asked some new questions to document changes and emerging trends in American farming,” says NASS Administrator Hubert Hamer. “These efforts, along with the partnership of hundreds of farm organizations across the country, and participation by hundreds of thousands of producers who completed the census, provide public data to tell the changing story of agriculture since 1840.” NASS received 445,000 responses online, a 57 percent increase from the 283,000 responses in 2012. The overall national response rate from the more than three million known and potential farms and ranches across the United States was 71.8 percent. That number was down from the 74.5 percent in the 2012 Census of Agriculture. The new Census of Agriculture results will include first-time-information on military service, food marketing practices, and on-farm decision-making. These additions will help to better capture the roles and contributions of beginning farmers, women farmers, and others involved in running a farm enterprise.

China Relaxes Hog Transport Restrictions

The Chinese hog industry has been hit hard by the African Swine Fever virus. The disease has a nearly 100 percent mortality rate among infected animals. Earlier this year, the Chinese government placed transportation restrictions on moving hogs in provinces that had ASF outbreaks. As a result, pork supplies are running low in certain areas. Chinese officials have relaxed those restrictions to make sure the country has adequate supplies. Breeder pigs and piglets from provinces without infection can now be transported to other provinces. Breeders and piglets from infected provinces can now be moved anywhere within that province. Hogs in infected areas of China can be moved to large slaughterhouses if the farm they were raised on meets certain biosecurity requirements. The Chinese Ministry of Commerce wants to grow its hog supplies ahead of the Chinese New Year and the Spring Festival in early 2019. China is home to the world’s largest hog herds, containing 55 percent of the world hog population. Forty percent of those are called “backyard hogs,” which makes the disease that much harder to contain.

Food Banks Struggling With Too Much Milk

A USDA program designed to buy and distribute almost $50 million in dairy products is overwhelming food pantries in Iowa and Illinois. An Associated Press article says River Bend Foodbank CEO Mike Miller says about 80,000 half-gallons of milk will be sent to food banks across the Quad City (Iowa) region through March. The large rise in milk donations comes from a USDA program designed to help dairy farmers caught in the middle of a trade dispute between the U.S. and several key trading partners. Retaliatory tariffs have cost American dairy farmers more than $1 billion since May. The USDA is buying the milk to help dairy farmers facing low milk prices and an oversupply of milk. The USDA is distributing the milk that would have been sold overseas to food banks across the country. “It’s certainly helpful to farmers who are hurt by tariffs placed on their products going into China,” Miller says. “It’s also a huge help to hungry people in our communities.” He says it’s challenging because milk has such a short shelf life, so it has to move quickly. Some food banks also lack adequate storage for the large number of dairy donations and don’t have a large enough staff to help distribute the milk quickly.

Washington Insider Long-Term Trade Impacts

The New York Times published a retrospective by Justin Wolfers, a professor of economics and public policy at the University of Michigan. Wolfers first points out that the president's protectionist trade policies so far have barely changed a fundamental reality: That the United States is still less protectionist than it has been throughout most of its history or than most nations are today. Still, the article is a warning -- that even if the tariffs currently in place inflict only limited damage on the economy, the consequences will be much more severe if Mr. Trump follows through on his threats for much more aggressive action. The average tariff rate in the United States was about 1.4 percent, according to the latest data compiled by the United States International Trade Commission. That was nearly as low as it has ever been. However, that figure only includes tariffs imposed in the administration's first year. In March 2018, the White House added a 25 percent tariff to about $31 billion worth of imported steel, and a 10 percent tariff to $17 billion of imported aluminum, excluding imports from Argentina, Australia and Brazil. Then, in July and August, Mr. Trump imposed an extra 25 percent tariff on $50 billion worth of imports from China, who retaliated, so Mr. Trump punched back, imposing an additional 10 percent tariff on $200 billion in Chinese goods. The Times says that Chad Bown, a trade policy expert at the Peterson Institute for International Economics, a Washington think tank, weighed in on the question of how consequential these changes would be. He calculated that the recent Trump actions would increase America's annual tariff revenue by about $42 billion. That sounds like a big number and it has garnered major headlines. But if you consider the scale of international trade, the figure starts to seem more modest: Last year, Americans spent roughly $2.3 trillion on imports. These numbers suggest the average tariff rate in 2018 will rise by about 1.8 percentage points, to about 3.2 percent, roughly their level at the beginning of President Bill Clinton's administration. Even so, average tariffs remain lower — by quite a large margin — than they have been through most of United States history. Even after these recent tariff increases, Wolfers says, the United States will charge lower tariffs than most countries, although it has become notably more protectionist than major trading partners like Canada and the European Union. Compared with the Smoot-Hawley tariffs of the 1930s, which averaged about 20 percent, the current rates are lower. Even those were below rates of the early 1900s, when it was about 30 percent. Still, most economists, Wolfers says, generally favor freer trade and the current tariffs are moving sharply in the wrong direction. Imposing tariffs on China, only to see China retaliate with tariffs on the United States, is in the interest of neither country. It has caused disruption in both nations, and made neither better off, he said. Furthermore, fighting a trade war when tariffs around the world are already pretty low is difficult. That's because if you "win," you can force your trading partners to knock their tariff rate down from a few percentage points above zero to something a bit closer to zero. That's not a big deal. The major weapon used in such fights is the threat of substantially higher tariffs and if negotiations become deadlocked, these can persist. The prize for winning a trade war is small, but the costs are potentially very large because of a troubling asymmetry that comes into play. Wolfers says that economic theory provides a rule of thumb that the cost of tariff-induced distortions rises with the square of the tariff rate. Put simply, small tariffs do relatively little harm--a tariff rate of 1 percent, for instance, probably won't prevent you from buying something you really want. If, however, the tariff rate jumps to 10 percent, the cost of tariff-induced distortions won't just be 10 times as great, but could be more like 100 times the damage. Thus, large tariff increases don't just lead to fewer imports. They also persuade people to cut back purchases of items they really value. Under this logic, even if relatively small tariff increases haven't imposed much pain, further escalation could have far more severe consequences. The administration has already announced plans to increase the second round of tariffs on China and could raise the average rate to 4.5 percent. Trump is threatening to broaden his tariff offensive, imposing a 25 percent tariff on all of the roughly $500 billion of goods and services imported from China. That would cause the average tariff rate to rise to about 7.2 percent. If that happens, the average tariff rate for the entire economy could rise into double digits. Even worse, the administration says it is considering withdrawing the United States from the WTO which would mean that it would no longer be bound by past multilateral trade agreements that together determine nearly all American tariff rates. If the U.S. withdrew from the trade organization, then an executive order could lead tariffs to revert to the much higher rates when they were last set by Congress as part of the Smoot-Hawley act. So, we will see. There are a lot of moving pieces involved, including current talks with China and others and reviews by Congress that could affect the outcome of the current posturing. Still, trade policy is a critical debate for producers and everyone on agriculture, and should be watched closely as it proceeds, Washington Insider believes.

Second Round of Trade Aid Payments Underway

USDA is moving forward on the second and final round of trade mitigation payments to farmers hurt from retaliation by America’s trading partners. Commodity producers are now eligible to receive Market Facilitation Payments on the second half of their 2018 production. USDA has been sending out the first round of MFP payments to producers since September on the first 50 percent of their 2018 production. The MFP payments are designed for almond, cotton, corn, dairy, hog, sorghum, soybean, fresh sweet cherry, and wheat producers. Producers are only required to register one time for both the first and second round of payments. The MFP signup period runs through January 15, 2019, but producers actually have until May 1 to certify their 2018 production numbers. Farmers who haven’t done so can find signup information and instructions at www.farmers.gov/mfp. Eligible producers must wait until harvest is completely finished as payments are made based on 2018 total production. Farmers that have already applied, completed harvest, and certified their production, will receive a second payment on 50 percent of their production, multiplied by the MFP rate for each commodity.

Foreign Ag Service Worked to Expand Trade in 2018

The USDA worked diligently in 2018 to expand trade opportunities around the world for U.S. ag producers. Those efforts paid off as global sales remained strong in spite of challenges in the trade arena through the year. Ted McKinney, Undersecretary for Trade and Foreign Agricultural Affairs, says it’s been a “rollercoaster ride this year,” but U.S. farm exports remain strong, thanks in no small part to the Foreign Agricultural Service. One of the biggest highlights of the year was the successful negotiation of the U.S.-Mexico-Canada trade agreement. USDA also broke down trade barriers and provided more access to overseas markets for several commodities. They included poultry and dairy to Canada through the USMCA, as well as lamb and goat meat to Japan, beef and pork in Argentina, poultry to India and Namibia, lamb to El Salvador, beef and poultry to Morocco, eggs to South Africa, and dairy to Turkey. FAS staff also worked around the globe to assist U.S. exporters in releasing hundreds of shipments that had been detained in foreign ports. USDA made sure that more than $77 million of perishable U.S. products arrived safely at their intended destinations. Among them was beef to Bulgaria, cherries to Taiwan, cranberries to China, and even lobsters to the United Arab Emirates.

Poultry Production Likely Slower in 2019

U.S. broiler markets are still weak, and prices are depressed. As a result, Rabobank says poultry production is likely to slow down in 2019. Nan-Dirk Mulder is a senior analyst for animal protein at Rabobank, who says the outlook for the global poultry industry will gradually improve as the year progresses. The biggest improvements likely arrive in the second half of 2019, thanks to rising Chinese imports spurred by the impact of African Swine Fever on protein demand in the country. That demand is expected to lead to more poultry imports, especially from the U.S. However, the market is struggling with oversupply from record-high broiler and red meat production that’s resulted in low domestic prices and high cold storage levels. That means the market needs to rebalance itself before things head in a positive direction. Rabobank’s Poultry Quarterly report says record broiler production at 3.89 billion pounds during October has pushed boneless breast meat prices well past historical lows. Most of the big-bird operations have seen sizeable losses in recent weeks, with the small-bird options faring just slightly better on production that’s down eight percent year-over-year. “Chicken demand remains weak as large supplies of competing proteins, especially pork, make for a very competitive retail marketplace,” says Mulder.

Livestock Haulers Freed From ELD Requirements

The U.S. Department of Transportation officially suspended the requirement that livestock haulers use electronic logging devices (ELDs) in their trucks. Back in 2012, the Commercial Motor Vehicle Safety Enhancement Act mandated that drivers of commercial motor vehicles replace their paper logs with ELDs by December 18th of 2017. The National Pork Producers Council requested a waiver from the requirement on behalf of all the U.S. livestock sectors. The NPPC also asked for an exemption from the regulation, citing the incompatibility between transporting livestock and the Department of Transportation’s Hours of Service Rules. Those regulations limit truckers to driving 11 hours daily, after 10 consecutive hours off duty, and restrict their on-duty time to 14 consecutive hours, which includes non-driving time. NPPC was granted the waiver but a permanent fix was yet-to-be-determined. The NPPC applauds the Trump Administration and its commitment to U.S. agriculture, marking this as a huge win for both U.S. livestock producers and haulers.

China Feed Manufacturer Found With ASF Virus in Feed Supplies

Chinese officials have found the African Swine Fever Virus in some protein powders made from pork blood produced by a Chinese company. The General Administration of Customs issued a statement saying that the raw material in 79.93 tons of contaminated protein products, mainly used in animal feed, came from 12 slaughterhouses. This happened in spite of the fact that Chinese health officials banned the use of food waste and pig blood as a raw material for the production of pig food. Officials implemented the ban in September in an effort to control the spread of the disease. China has already reported more than 90 cases of African Swine Fever virus infection, which is deadly to pigs but doesn’t harm humans. China first detected the disease in its herds back in August. The customs department also has issued an alert, that will last for six months, to strengthen testing for the African Swine Fever virus in exports of similar products. The alert also urges farms in Hong Kong and Macau (Mah-COW) to tighten their checks on animal feed imports.

Red Meat Exports Deliver Value to Corn Producers

The U.S. Meat Export Federation says an updated study shows the value that red meat exports deliver to U.S. corn producers. A Drovers’ Report says a study conducted in 2016 by World Perspective, Incorporated, took a look at the previous year’s exports and determined that those exports accounted for 11.7 million tons of combined corn and dried distiller’s grains. In a similar study, WPI found that 2018 exports will use a combined total of 14.9 million tons of corn and distiller’s grains. That amounts to an additional 460 million bushels of corn produced, an increase totaling 29 percent over the 2015 predictions. USMEF President and CEO Dan Halstrom says, “The USMEF receives outstanding support from the feed grain and oilseed industries because those producers understand that red meat exports boost the profitability of their largest customer, which is the U.S. livestock industry.” USMEF says, since 2015, one in every five bushels of added feed demand for corn is due to beef and pork exports.

Cattle and calves on feed for the slaughter market in the United States totaled 11.7 million head on Dec.1

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on Dec.1, 2018. The inventory was 2 percent above Dec. 1, 2017, according to USDA’s latest monthly Cattle on Feed report issued on Dec. 20. Placements in feedlots during November totaled 2.0 million head, 5 percent below 2017. Net placements were 1.92 million head. During November, placements of cattle and calves weighing less than 600 pounds were 550,000 head, 600-699 pounds were 495,000 head, 700-799 pounds were 416,000 head, 800-899 pounds were 315,000 head, 900-999 pounds were 115,000 head, and 1,000 pounds and greater were 105,000 head. Marketings of fed cattle during November totaled 1.87 million head, 1 percent above 2017. Marketings were the highest for November since the series began in 1996.

USDA Not Arbitrary And Capricious In Withdrawing Interim Rule

USDA was not “arbitrary and capricious” in withdrawing an interim final rule that would have made it easier for farmers and ranchers to sue meatpackers on claims of unfair treatment in business contracts, the Eighth Circuit Court of Appeals has ruled. The appellate judges denied a petition to review brought by the Organization for Competitive Markets, which contends that USDA has violated a congressional mandate given in the 2008 farm bill to publish a regulation outlining criteria around contracting practices by June 2010. OCM, on behalf of two poultry growers and a cattle rancher, filed the lawsuit late last year after USDA, under the new Trump administration, withdrew an interim final rule — known as the Farmer Fair Practices Rules — implemented at the end of the Obama administration in 2016. That interim final rule would have made it easier for farmers and ranchers to prevail in cases where they claim packers treat them unfairly in contracts because it would have essentially eliminated the need for proof of competitive harm. Implementation of the Farmer Fair Practices Rules would have represented a change in USDA’s regulatory approach and would have conflicted with the courts’ historic interpretations of the Packers and Stockyards Act (PSA). In its ruling, the panel of appellate judges wrote, “USDA explained that it was withdrawing the interim final rule and taking no further action on the proposed regulations because the proposed regulatory change of course would generate protracted litigation, adopt vague and ambiguous terms, and might prevent innovation and foster vertical integration that would hinder new market entrants. … These are legitimate regulatory and substantive concerns.” USDA attorneys told the court last fall that the agency planned to put the issue of the PSA rules on its spring 2019 regulatory agenda, with a possible notice of proposed rulemaking coming sometime after that, and then another rulemaking process to follow that notice.

China Considers Domestic Policy Changes

As high-level U.S.-China trade talks continue to take place, China has announced it is considering changes to government policies concerning technology transfer -- an area of key concern for the U.S. and a catalyst for the ongoing trade war. China said it held vice-minister-level talks with the U.S. over the phone late last week, according to a statement on its Ministry of Commerce’s website. The two sides exchanged views on trade balance and enhancement of intellectual property rights protections during the call and made "new progress," the ministry said. They also discussed arrangements for next call and visits. China and the U.S. held a same-level phone call on December 19. Meanwhile, new efforts to address policies that motivated U.S. trade actions against China have also surfaced. China is considering a new law on foreign investment that would reiterate the illegality of forced technology transfer. The measure could replace three existing rules on wholly foreign-owned enterprises, Chinese-foreign equity joint ventures and contractual joint ventures. Forced technology transfers were a key issue cited by the U.S. when it initiated trade actions against China earlier this year. A Section 301 investigation conducted by the Office of the U.S. Trade Representative found Chinese government "acts, policies and practices" promoted forced tech transfer, deeming such actions "unreasonable or discriminatory" and a burden to U.S. commerce. The conclusions of report were the motivating factor for tariffs the U.S. went on to impose on scores of Chinese imports. That initial round of duties marked the beginning of a trade war between the two nations that escalated throughout the year.

More Signs Shutdown Could Drag Into 2019

Chances the partial federal government shutdown may drag on into early 2019 appeared to increase as remarks by President Donald Trump indicated he is not budging on border security funding demands. Meanwhile, Democratic leaders maintained the president lacks the necessary support in Congress to clear a bill with his requested funding provisions. "I can't tell you when the government is going to be open," Trump told reporters Christmas Day. "I can tell you, it's not going to be open until we have a wall, a fence, whatever they'd like to call it. I'll call it whatever they want." Those remarks followed a Christmas Eve tweet from the president that implored congressional Democrats to "make a deal on desperately needed border security," and added, "Democrats not wanting to make a deal will cost our country more money than the border wall we are all talking about." For their part, top Democrats argue Trump and conservative House lawmakers lack the support needed to pass a funding package that meets their demands for more money for a wall on the U.S.-Mexico border. "As long as the president is guided by the House Freedom Caucus, it’s hard to see how he can come up with a solution that can pass both the House and Senate," Senate Minority Leader Chuck Schumer, D., N.Y., and House Minority Leader Nancy Pelosi, D., Calif., wrote in a joint Christmas Eve statement. The Democratic leaders also said it was difficult to negotiate with the White House as different officials have said "different things about what the president would accept or not accept," making it "impossible to know where they stand at any given moment." The rhetoric, along with other comments, including earlier ones by Office of Management and Budget (OMB) Director and incoming Acting White House Chief of Staff Mick Mulvaney, further suggest an agreement to end the shutdown may not emerge before year's end.

Washington Insider Perils To Firing The Fed Chair

There seems to be wide and growing concern about a bitter fight between the President and the Fed. Bloomberg says the president says he likes winning, but concludes that "it’s difficult to count up anything but losers if he fires Federal Reserve Chairman Jerome Powell." The president has been discussing whether he can dismiss Powell, Bloomberg says, and that is prompting Treasury Secretary Steven Mnuchin and others to say that president doesn’t believe he has that authority. If he decides to push ahead anyway, the president will be up against powerful forces that could deliver unwelcome verdicts in three principal arenas: the financial markets and economy, the U.S. Senate and the courts, Bloomberg warns. For example, firing Powell could undermine the U.S. currency, leading to higher longer-term interest rates as foreign investors who are critical to financing America’s growing deficit balk, said Mark Spindel, the head of Potomac River Capital, a Washington investment fund. "I can’t think of one U.S. asset you would want to own," said Spindel, co-author of a book on the Fed’s relationship with Congress. "Where is the president helped by any of this?" The president has been simmering for months over Fed policy, claiming rising interest rates are putting a brake on his economic plans, though many companies have cited the trade war as negatively impacting business. On Wednesday, Fed officials raised the benchmark lending rate a quarter point to reflect a strong economic outlook for 2019. That decision was unanimous, with all of Trump’s appointees and the five reserve bank presidents who aren’t politically appointed voting in favor. Policy makers also forecast that they expect to hike borrowing costs twice in 2019. Stocks tumbled further amid confusion over the Fed’s message and a separate fight over a government shutdown. The irony is that if the president does try to fire Powell, it could erode the central bank’s economic outlook and hit growth and hiring. In that case, policy makers might have to pause their rate hikes. Then, it would become a matter of who the public blames for the slowdown: the president or the Fed. "Firing the Fed Chairman over a one quarter-point move, with real economic data as strong as they have been, would be utter madness and highly counterproductive," said Jeffrey Lacker, a former Richmond Fed president, now a professor at Virginia Commonwealth University. Ultimately, the president’s influence is limited. "The president can try and fire the chairman but he can’t change the whole Federal Reserve because he is not responsible for its creation," Michael Bordo, a professor at Rutgers University, said. The second arena involves the Senate, which confirmed Powell and, together with the House, presides over the Federal Reserve Act. It isn’t clear that the Senate would blithely accept Trump’s wishes and rubber stamp a new chairman. Alabama Republican Senator Richard Shelby, a former chairman of the Senate Banking Committee, publicly warned Trump against the move on Saturday after Bloomberg reported the discussions said, "The independence of the Fed is foundation of our banking system." Powell could stay on as a governor and be elected Federal Open Market Committee chair even if the president removed him as Fed Board chair, because the two positions are distinct. The FOMC, the Fed panel that sets interest rates, could even elect a non-politically appointed Fed bank president as chair. The third arena involves the legal battle over removal. The Federal Reserve Act stipulates that the president can only remove a Fed governor - and Powell is also a governor - "for cause," a reason that typically doesn’t cover policy differences. Powell’s Senate confirmation and fixed terms provide more protection and have been interpreted by the courts as limiting the president’s authority to dismiss his own appointments in order to grant an agency greater independence. So, we will see, but certainly this is a fight producers should watch closely if it does emerge, Washington Insider believes.

Some USDA Functions Still Running Despite Partial Government Shutdown

U.S. Secretary of Agriculture Sonny Perdue today detailed which functions of the U.S. Department of Agriculture (USDA) will remain available in the event of a lapse in government funding. “There may be a lapse in funding for the federal government, but that will not relieve USDA of its responsibilities for safeguarding life and property through the critical services we provide,” said Secretary Perdue. “Our employees work hard every day to benefit our customers and the farmers, ranchers, foresters, and producers who depend on our programs. During a shutdown, we will leverage our existing resources as best we can to continue to provide the top-notch service people expect.” Some of the programs that will continue: Meat, poultry, and processed egg inspection services. Grain and other commodity inspection, weighing, grading, and IT support services funded by user fees. Inspections for import and export activities to prevent the introduction and dissemination of pests into and out of the U.S, including inspections from Hawaii and Puerto Rico to the mainland. Care for animals, plants and associated infrastructure to preserve agricultural research and to comply with the Wild Horses and Burros statute. Eligible households will still receive monthly Supplemental Nutrition Assistance Program (SNAP) benefits for January. Most other domestic nutrition assistance programs, such as the Commodity Supplemental Food Program, WIC, and the Food Distribution Program on Indian Reservations, can continue to operate at the State and local level with any funding and commodity resources that remain available. The Child Nutrition (CN) Programs, including School Lunch, School Breakfast, Child and Adult Care Feeding, Summer Food Service and Special Milk will continue operations into February. Meal providers are paid on a reimbursement basis 30 days after the end of the service month. Carryover funding will be available during a lapse to support FY 2019 meal service. Provision of conservation technical and financial assistance (such as Conservation Reserve Program, Environmental Quality Incentives Program, and easement programs).Some farm payments (including direct payments, market assistance loans, market facilitation payments, and disaster assistance programs) will be continued for the first week of a shutdown. Market Facilitation Program payments. Trade mitigation purchases made by USDA’s Agricultural Marketing Service. Agricultural export credit and other agricultural trade development and monitoring activities. USDA’s Market News Service, which provides critically important market information to the agricultural industry.

Ag Groups Pleased 2018 Farm Bill is Finished

Ag commodity and policy groups across the board are pleased the 2018 Farm Bill is over the finish line. The National Corn Growers Association says it’s pleased farmers can look forward to 2019 with the certainty of a new farm bill in place. An NCGA statement says, “Between depressed commodity prices, record low farm incomes, as well as tariff and trade uncertainty, this is welcome news.” The American Soybean Association is happy with provisions in the bill that maintain the ARC and PLC programs, as well as a strong crop insurance program, funding for Foreign Market Development program, and many of its other priorities. Incoming House Ag Chair Collin Peterson says the new bill provides expanded, affordable risk management options for dairy farmers, as well as permanent, mandatory funding for a host of other valuable programs. The National Cotton Councill says the legislation means the continuation and enhancements of a much-needed safety net, crucial for many producers still dealing with the aftermath of natural disasters in 2018. The U.S. Meat Export Federation says one of the most critical components in the new bill is support for the international promotion of U.S. agricultural products. The American Farm Bureau says the bill improves on risk management programs, invests in research and beginning farmer programs, is budget neutral, and ensures environmental stewardship programs continue to be available.

Ag Broadband Coalition Applauds Connectivity Provision in Farm Bill

The Agricultural Broadband Coalition welcomes the Precision Agriculture Connectivity Act included in the just-signed 2018 Farm Bill. Coalition co-Chair Nick Tindall says, “U.S. farmers and ranchers are deploying more and more data-driven technologies and solutions in their operation, and their need for reliable broadband connections in the field is intensifying. This important provision highlights this need to expand broadband services, including mobile coverage, to U.S. croplands and ranchlands.” Zippy Duvall, President of the American Farm Bureau, says bringing together the USDA, the Federal Communications Commission, along with public and private stakeholders to address the needs of precision agriculture ensures current and future generations of farmers and ranchers will have the necessary connectivity to achieve their goals. Brian Cavey, Senior Vice President of Government Affairs for CoBank says, “Rural communities depend on broadband to keep their businesses competitive in the marketplace. The inclusion of the connectivity provision in the 2018 Farm Bill is an important step towards developing widespread broadband internet access across America’s farmland.”

Ag Groups Insist Agriculture Be Included in EU Trade Deal

A coalition of food and agriculture groups insist that any future trade agreement between the U.S. and the European Union include agriculture. The groups also want the agreement to address the EU’s restrictive tariff and non-tariff barriers to U.S. farm products. Those 53 organizations sent a letter to the Office of U.S. Trade Representative Robert Lighthizer. They want the administration to continue stressing to the EU that only a truly comprehensive agreement will be acceptable to the administration and the U.S. Congress. The EU has openly expressed reluctance to include agriculture in any future trade agreement with the U.S. An agreement would require the EU to lift import barriers that protect their farmers and remove regulatory measures that are scientifically unjustified or overly restrictive. Because of those barriers, the U.S. had a trade deficit at nearly $11 billion last year, and it’s only increased over the years. The trade deficit with the EU was $1.8 billion back in 2000.

Perdue Looks Back at USDA Accomplishment in 2018

Ag Secretary Sonny Perdue took a look back at a busy year for the USDA and said his agency accomplished a lot of good things for American agriculture. “We fought for American farmers, ranchers, and producers by delivering new and improved trade deals like USMCA and a re-negotiated KORUS agreement, provided trade assistance to farmers because of illegal trade retaliation, and helped our fellow citizens through devastating natural disasters,” Perdue says. “I’m proud to say that every day at USDA we do our best to live by our motto to ‘Do Right and Feed Everyone.’” He says accomplishments include making strides toward reigning in dependence on government assistance by beginning the rule-making process to move more able-bodied adults without dependents off the SNAP program and to self-reliance. USDA also provided a broad range of assistance to residents, agricultural producers, and impacted communities at large following Hurricanes Florence and Michael in 2018. Over the past year, the USDA Forest Service treated more than 3.5 million acres to reduce hazardous fuels and improve forest health through timber sales and prescribed fire. The agency also successfully merged the Agricultural Marketing Service, Grain Inspection, Packers and Stockyards Administration, and the Farm Service Agency’s Commodity Operations programs to better meet the needs of farmers, ranchers, producers, and consumers, while also improving customer service and maximizing efficiencies.

House Democrats Introduce Bill to Stop ERS, NIFA Moves

The Hagstrom Report calls it a “sign of things to come.” House Democrats introduced a bill designed to stop the Trump Administration’s idea of placing the Agriculture Department’s Economic Research Service under the USDA chief economist. The bill would also prevent the administration from moving most of the 600-plus employees of the ERS and the National Institute of Food and Agriculture out of the Washington metropolitan area. Ag Secretary Sonny Perdue proposed the changes based on the idea that they would increase efficiency, be cheaper, and closer to the nation’s farmers and ranchers. A total of 136 different communities responded to a USDA request for expressions of interest in hosting the two agencies. However, multiple research organizations have said the changes would not only disrupt the lives of the employees, but it would also diminish the Ag Department’s status as one of the finest agricultural research institutions in the world. The move would also make it difficult for researchers to interact with other federal agencies. Georgia Representative Sanford Bishop signed on as a co-sponsor of the bill. He says, “Abruptly relocating these agencies and politicizing their leadership will disrupt the important work they are doing and could also cause an unnecessary loss of valuable expertise through possible staffing losses. None of this will be helpful at a time when our farmers are facing retaliatory tariffs and years of declining commodity prices.”

Perdue Announces Site-Selection Criteria for possible ERS, NIFA Location

Ag Secretary Sonny Perdue says the USDA has developed a set of criteria to evaluate the 136 expressions of interest received from groups in 35 states. Those locations are all possible new homes for the National Institute of Food and Agriculture and the Economic Research Service. “We don’t undertake these relocations lightly,” Perdue says.”We’re doing it to improve the performance and services these agencies provide. We’ll be placing those agencies closer to many stakeholders, most of whom live and work far from Washington, D.C.” He says the move will save money for taxpayers and improve the USDA’s ability to retain more employees in the long run. They’ll also increase the probability of attracting highly-qualified staff with training and interests in agriculture. UDA will apply a set of guiding principles, including locations meeting USDA travel requirements, locations with specific labor force statistics, and locations with work hours most compatible with USDA office schedules.

High Hopes for Possible Bioengineered Cannabis

Genetically modified cannabis might turn into a lucrative cash crop someday. Already, scientists are racing each other to sequence the cannabis genome. That would enable producers to highlight desired traits, make the plants less dependent on pesticides, or possibly develop new medical treatment options for cannabis. There aren’t many regulations guiding the budding business sector. That makes things uncertain for both growers and consumers. Modified marijuana is still in the research and development stage, but the products could jump from labs to farms within only a few years. Politico says there is no framework in place for studying the safety risks of biotech cannabis for humans and other plants. Cannabis is still illegal at the federal level, so USDA and FDA can’t regulate the product like they can for other genetically engineered plants. Large agribusiness companies like Bayer and Syngenta aren’t active in the emerging business space yet, leaving startups to dominate the field so far.

Montana Farm Bureau Statements on Zinke resignation

On the notice of Interior Secretary Ryan Zinke’s resignation earlier this week: Montana Farm Bureau President Hans McPherson: “Montana Farm Bureau was very disappointed to hear about the resignation of Interior Secretary Zinke. We had a western man with western values, and we are proud to have had a Montanan in the Cabinet. The politics in Washington, D.C. make it a tough environment. We wish him success in the future.” Montana Farm Bureau Executive Vice President John Youngberg: “We are disappointed to see him leave. Under Zinke’s leadership, the Western states in general and Montana, specifically, had much more access to the Secretary than at any time in the past. He understood agriculture and resource issues and his voice will be missed.” American Farm Bureau President Zippy Duvall: “On behalf of the American Farm Bureau Federation, we offer our sincere appreciation and gratitude to Secretary Ryan Zinke for his service, vision, and leadership at the U.S. Department of the Interior. His admiration for rural America, dedication to management of our public lands, and support for traditional western values have not gone unnoticed. We look forward to working with President Trump’s next Interior Secretary to advance the interests of Americas farmers and ranchers and to ensure effective management of our public lands.”

LIVESTOCK HAULERS NO LONGER REQUIRED TO USE ELDS

The U.S. Department of Transportation this week permanently suspended the requirement that livestock haulers use electronic logging devices (ELDs) in their trucks. As part of the 2012 Moving Ahead for Progress in the 21st Century Act, the Commercial Motor Vehicle Safety Enhancement Act mandated that drivers of commercial motor vehicles replace by Dec. 18, 2017, their paper logs with ELDs, which record driving time, engine hours, vehicle movement and speed, miles driven and location information. NPPC requested on behalf of the U.S. pork industry and other livestock sectors a waiver from the requirement. The organization also asked for an exemption from the regulation, citing the incompatibility between transporting livestock and DOT’s Hours of Service rules. Those regulations limit truckers to 11 hours of driving daily, after 10 consecutive hours off duty, and restrict their on-duty time to 14 consecutive hours, which includes nondriving time. NPPC was granted the waiver, but a permanent fix was not determined. NPPC applauds the Trump administration’s commitment to U.S. agriculture, marking this as a huge win for U.S. livestock producers and haulers.

MSLF Appeals Judge’s Decision to Return Yellowstone Grizzly to the Endangered Species List

Denver, CO. – December 21, 2018 – Mountain States Legal Foundation filed an appeal Thursday, urging the Ninth Circuit to overrule the District Court in Montana and to return management of the Greater Yellowstone Ecosystem grizzly bear to state and local wildlife management authorities. Mountain States Legal Foundation appealed to the United States Court of Appeals for the Ninth Circuit on behalf of its clients, Wyoming Farm Bureau Federation, Wyoming Stock Growers Association, Charles C. Price, and W&M Thoman Ranches, LLC. Mountain States Legal Foundation will ask the appeals court to uphold the original purpose of the Endangered Species Act (ESA) and to allow U.S. Fish and Wildlife Service (USFWS) to return management of the recovered grizzly bear to the states where the animal lives and has a direct impact on citizens. Once a successful recovery occurs, the ESA stipulates that management is supposed to return to the states. “If this decision is allowed to stand, it will be nearly impossible for USFWS to delist any recovered species in the future,” said Cody J. Wisniewski of Mountain States Legal Foundation, lead counsel on the case. “The court cannot impose additional delisting requirements on USFWS that the ESA does not contemplate—especially requirements that run contrary to the purpose of the Act.” In September 2018, Judge Dana Christensen of the U.S. District Court of Montana ordered that the Greater Yellowstone grizzly bear be returned to the endangered species list, contrary to the recommendation of USFWS researchers (Crow Indian Tribe v. United States of America). After years of research and careful monitoring, the USFWS found in June of 2017 that the Greater Yellowstone region’s grizzly bear population exceeded the minimum population goal set by scientists in 2013 and was fully recovered. USFWS scientists determined it was time to remove the Yellowstone grizzly from the Endangered Species List. “This achievement stands as one of America’s great conservation successes,” said U.S. Secretary of the Interior, Ryan Zinke, about the 2017 delisting. But several Indian tribes and environmental groups sued to force the grizzly back onto the list and to require USFWS to retain management control of the bear. Ranchers in western Wyoming have faced mounting losses to their sheep and cattle in recent years and have faced more frequent attacks on humans as the grizzly population has swelled and expand its territory. A Wyoming hunting guide was killed in a grizzly attack only ten days prior to Judge Christensen’s ruling. MSLF will ask the Ninth Circuit to reaffirm that the ESA is designed to assist the states with recovery, when necessary, and then to return management of the species to the states once recovery goals are met.

Cattle feeding and packer profit margins both declined last week

Cattle feeding and packer profit margins both declined last week as cash cattle prices were modestly lower. Cattle feeders eared $31 per head, $68 less than the previous week, while packer margins dipped $8 per head to $137, according to the Sterling Beef Profit Tracker. Cash cattle prices were $118.30, about 60 cents per cwt. lower. The beef cutout was nearly steady at $211.38. The cost of finishing a steer last week was calculated at $1,590, which is $59 higher than the previous week and $8 higher than the same week a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore. A year ago cattle feeders were earning an average of $60 per head. Feeder cattle represent 71% of the cost of finishing a steer compared with 73% a year ago. Farrow-to-finish pork producers saw their margins slip $6 to average losses of $26 per head. Lean carcass prices traded at $48.24 per cwt., $2.9 per cwt. lower than the previous week, and $4.69 lower than a month ago. A year ago pork producer margins were at breakeven. Pork packer margins averaged a profit of $43 per head last week. Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2018 will average $162 per cow. That would be steady compared to the $164 estimated average profit for 2017. Estimated average cow-calf margins were $176 in 2016, and $438 per cow in 2015. For feedyards, Nalivka projects an average profit of $21 per head in 2018, which would be $160 less than the average of $181 per head in 2017. Nalivka expects packer margins to average about $168 per head in 2018, up from $120 in 2017. For farrow-to-finish pork producers, Nalivka projects 2018 profit margins will average a profit of $2.50 per head in 2018, compared to profits of $21 in 2017. Pork packers are projected to earn $19 per head in 2018, down from $25 profit per head in 2017.

Trump Signs Farm Bill, References New USDA Rule On SNAP

President Donald Trump signed the 807-page farm bill into law, capping off a process that was filled with fits and starts as the legislation finally ended up being approved by both chambers via overwhelming votes. "Today's action will help Americans transition from welfare to gainful employment, strengthening families and uplifting communities," Trump said. "That was a difficult thing to get done, but the farmers wanted it done. We all wanted it done. I think, in the end, it's going to make a lot of people very happy." Getting to the point of Trump's signature had been an arduous task as the House-passed version of the bill included new work requirements for recipients under the Supplemental Nutrition Assistance Program (SNAP), provisions that prompted every Democrat in the House to oppose the bill. And those work requirements were also rejected by the Senate and in the end, they were stricken from the bill. Trump made mention of a USDA proposal unveiled earlier in the day that would propose changes to the program. Now that the bill is signed into law, USDA will embark on the process of implementation. That is a process that will take countless hours and weeks ahead for the agency as it takes the legislative language and develops the regulations that will bring the measure to farmers. While the program changes are not significant, there are several areas where USDA will make changes to reflect adjustments in areas like commodity loan rates, changes to the Ag Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. Conservation programs were also adjusted in the bill, all areas where USDA will have to change regulations that came with the 2014 Farm Bill. The regulatory timeline will go well into 2019 and will culminate with farmers being allowed to enroll in the new programs for the 2019 crop season and beyond. But they will get a choice in the farmer safety-net programs starting with the 2021 crop year.

Opposition to Moving ERS/NIFA Continues To Grow

USDA's proposal to move the Economic Research Service (ERS) and National Institute for Food and Agriculture (NIFA) outside of the Washington, DC, metro area remains a plan that is generating more and more opposition. The latest voices that have been added to the choir opposing the move are all Democratic members of the House Agriculture Appropriations Subcommittee. The lawmakers, headed by Reps. Chellie Pingree, D-Maine, Sanford Bishop, D-Ga., Rosa DeLauro, D-Conn., and Mark Pocan, D-Wis., introduced legislation Thursday to thwart the move. The Agriculture Research Integrity Act of 2018 would specify that ERS, NIFA and the National Ag Statistics Service (NASS) remain under the Undersecretary for Research Education and Economics, and "may not be vested in the head of another agency within the Department." That provision aims at the plan to reorganize the reporting structure for ERS and NIFA, putting them under the Office of the Chief Economist. As for the physical relocation of ERS and NIFA to somewhere outside the Washington, DC, metro, the legislation simply states those agencies must remain "within the National Capital Region." The legislation is also backed by some Democratic members of the House Ag Committee along with Rep. Steny Hoyer, D-Md.

Washington Insider: Ag Policy Peace Avoided

In case you wondered whether things would get too quiet in the ag policy area now that the formal Farm Bill debate has ended, you can relax – USDA is proposing a modified rule to more strictly enforce existing work requirements on more food-stamp recipients by reining in states’ ability to waive time restrictions, Politico said this week. The rule was released at the same time the president was expected to sign the bill into law, an intentional link, Politico said. The proposal, which was initially expected to be released before the midterm elections, is the administration’s response to concessions House Republicans made on food stamps in the final bill. The bill does not mandate stricter work requirements or tighten eligibility criteria for the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, which accounts for more than three-quarters of farm bill spending. The White House and USDA Secretary Sonny Perdue had backed the House Republican efforts to overhaul the nutrition programs. The president used his Twitter platform to press for stronger work requirements, even late into conference negotiations, where food stamps were a major sticking point. Ultimately, the farm bill dispensed with all of the House GOP’s controversial SNAP proposals, and left out an effort by Senate Agriculture leaders that could have blocked USDA’s regulatory action. The regulations USDA is proposing targets a group of Supplemental Nutrition participants known as able-bodied adults without dependents, or ABAWDs, which includes recipients ages 18 through 49 who are not disabled or caring for children or other dependents. As of 2016, they accounted for a small slice, 3.8 million, of the nearly 40 million Americans who receive SNAP benefits to help them purchase groceries. Under current law, ABAWDs can’t receive food stamps for longer than three months during a three-year period, unless they are working or enrolled in an education and training program for at least 80 hours a month. However, states can waive this time limit when unemployment is high or there aren’t enough jobs available — an opportunity that was utilized widely during the recent recession, Politico noted. The proposed rule would tighten the criteria states must meet when applying for waivers from USDA, and it is projected to save an estimated $15 billion over a decade, Brandon Lipps, administrator of USDA’s Food and Nutrition Service, told reporters. Nearly 74% of the ABAWD population, or about 2.8 million people, do not work. That figure is tracked by states, USDA says. An estimated 755,000 of these individuals would lose SNAP benefits over three years if the USDA proposal is implemented. Lipps said the number of areas across the country with waivers would shrink by 75%. Currently, 36 states and territories waive the time limit for at least some portion of their ABAWD population. Seven have statewide exemptions, including Alaska, Louisiana, New Mexico and the District of Columbia. California, Florida, Texas and New York all have partial waivers. They are the four most populous states and also happen to have the largest ABAWD populations. In 2016, USDA estimated that there were 570,000 ABAWDs receiving SNAP benefits in California. The proposal makes several major changes to the criteria used to determine whether states or regions qualify for waivers. States have a handful of ways to qualify: Their unemployment rate can be above 10%, or they can demonstrate that they don’t have enough jobs available. Lipps said clarity has been lacking in how an “insufficiency of jobs” in an area is substantiated, and that’s allowed waivers to be approved for states or regions where unemployment is as low as 4%. USDA’s plan would set a firm unemployment-rate requirement of 7%, Lipps said. USDA said the current proposal would not affect as many SNAP participants as the House GOP’s farm bill would have, but “anti-hunger groups are likely to decry the administration’s proposal as too harsh on low-income families.” Politico said. Senate Agriculture ranking member Debbie Stabenow, D-Mich., said the USDA proposal “blatantly ignores” the compromise farm bill heading to Trump’s desk, as well as more than 20 years of history giving states flexibility to request waivers based on local job conditions. “I expect the rule will face significant opposition and legal challenges,” Stabenow said. “Administrative changes should not be driven by ideology. I do not support unilateral and unjustified changes that would take food away from families.” House Agriculture Chairman Mike Conaway, R-Texas, said that the USDA proposal would ensure that waivers are preserved for communities that truly need them. “Paired with the farm bill’s modernized [education and training] programming and increased investment, this proposed rule will allow ABAWDs to seek new opportunities and achieve their goals,” Conaway said. The USDA plans to take comments on the proposal for 60 days. We will see what happens in this seemingly endless debate. Once a farm bill is signed into law, nearly all sides are traditionally reluctant to “reopen” to past fights that then may be difficult — or impossible — to control. However, Senator Stabenow’s reaction is likely indicative of the feelings of Democratic members of the ag establishment and likely will lead to some “midnight oil” being burned as supporters of the most recent bill consider how to react to the new effort to trim the nutrition programs, Washington Insider believes.

Trump Signs Farm Bill, Won’t Sign Stopgap Funding Bill

President Donald Trump signed the 2018 Farm Bill on Thursday during a White House ceremony. The five-year bill sets agriculture policy and reauthorizes farm, conservation, nutrition, rural development, agricultural trade, as well as many other programs. The legislation also removes hemp from the Controlled Substances Act, which legalizes hemp production. The Minneapolis Star Tribune says the signing is good news for farmers, who have been buffeted on all sides by trade wars, low commodity prices, and generally uncertain futures. However, the question is whether those reauthorized programs will actually have funding available. A short-term spending bill has made its way through Congress this week, and initially, Trump said he would sign it to keep government funded until February. A CBS News report says Speaker of House Paul Ryan met with the president and then made the announcement that Trump will not sign it. The president wants funding for a border wall between the U.S. and Mexico, which the Senate bill does not have. Ryan tells reporters,” We want to keep the government open but we also have legitimate concerns about securing our border.”

USDA Changing State Waiver Requirements for SNAP Benefits

It turns out Republicans could get more stringent work requirements added to the Supplemental Nutrition Assistance Program after all. The USDA is changing requirements for states to issue waivers on SNAP benefits. Politico says it’s not a coincidence that the announcement came out on the same day that President Trump is expected to sign the new farm bill. As the current law is written, able-bodied adults without dependents can’t get SNAP benefits for more than three months during a three-year period. To get more benefits from the program, those able-bodied adults have to be working or enrolled in an education or training program for 80 hours a month. However, states are allowed to waive those requirements when unemployment spikes or there aren’t enough jobs available. USDA issued a proposed rule that would tighten the requirements states have to meet in order to issue those waivers. An estimated 755,000 of those able-bodied adults would lose SNAP benefits over three years if the proposal is implemented. USDA says the plan should save up to $15 billion over a decade.

Large Soybean Supply Keeping Prices Low Despite China Purchases

USDA has confirmed China bought even more soybeans, 1.19 million metric tons worth. It’s the biggest purchase China has made in more than a year, and the ninth-largest purchase in the last ten years. However, it’s not been a big boost to soybean prices. Chip Nellinger of Blue Reef AgriMarketing told AgDay TV that it’s good to see China once again in the market for U.S. soybeans. The purchases would have had more effect on the market a few months ago because we didn’t know how big the U.S. crop was, as well as the progress of South American soybeans. Nellinger said the fact that we know the answers to both of those questions has taken some of the excitement surrounding Chinese purchases out of the market. There’s a lot of soybeans still sitting out there to sell yet, both domestically and overseas, which is the biggest challenge to higher prices. Nellinger says, “It’s great that China is buying beans again but we’ve got a lot of beans around the world to still get rid of.” The latest USDA report put carryover at 955 million bushels. Nellinger says it’s definitely putting a lid on prices. Even if China purchases two-thirds of what USDA trimmed off expectations, there’s still a carryover of about 700 million bushels.

USDA Announces Bioengineered Food Disclosure Standard

Ag Secretary Sonny Perdue says USDA has established the National Bioengineered Food Standard. The standard will require food manufacturers, importers, and certain retailers to make sure bioengineered foods are properly disclosed to consumers. Perdue says the new standard will increase the transparency of our nation’s food system by establishing guidelines on how to disclose bioengineered ingredients. “This ensures clear information and labeling consistency for consumers about the ingredients in their food,” Perdue says. “The standard also avoids a patchwork of state-by-state systems that could be confusing to consumers.” The Standard will define bioengineered foods as those that contain detectable genetic material that has been modified through lab techniques and can’t be created through conventional breeding or found in nature. The implementation date is January first of 2020. Smaller food manufacturers will have an implementation date of January first, 2021. There are several disclosure options, including written text, symbols, electronic or digital link, and/or text message. Options like phone numbers or websites will be available to smaller food manufacturers. A congressional law passed in June of 2016 required USDA to come up with a standard to disclose which foods that are or may be bioengineered.

Ag Groups Support New Food Disclosure Rule

Most key agricultural groups seem to support the USDA’s final rule implementing the National Bioengineered Food Disclosure Standard. The National Corn Growers Association says the standard is designed to inform consumers about the presence of bioengineered genetic material in their food. USDA’s disclosure standard stands firmly with science is stating there is no risk to eating bioengineered crops. NCGA President Lynn Chrisp says, “American’s corn farmers need a consistent, transparent system to provide consumers with information without stigmatizing this technology.” Dave Stephens, American Soybean Association President, says soybean farmers are pleased that USDA took its time to do the rule in the right way. “We believe it allows transparency for consumers while following the intent of Congress that only food containing modified genetic material be required to be labeled,” Stephens says. The National Council of Farmer Cooperatives also applauded the USDA’s standard. “This rule gives the public more information than ever before on how their food was produced,” says Chuck Conner, NCFC President. “At the same time, farmers and food producers still have access to the technology needed to provide safe and affordable food to a growing world population.”

NFU Supports USDA-FDA Joint Oversight of Cell Culture Technology

The National Farmers Union supports efforts by the USDA and the Food and Drug Administration to establish a joint regulatory framework overseeing the production and sale of animal cell culture technology. NFU President Roger Johnson is asking the agencies to provide clarity to consumers as to whether or not they are purchasing meat products raised in a traditional manner or products grown in a lab. “Animal cell culture technology needs to be regulated and should include roles for both the USDA Food Safety and Inspection Service and the FDA,” Johnson says. “it’s important that this joint regulatory framework promotes fair competition for producers and the health and safety of consumers.” Johnson points out that NFU members oppose labeling alternative protein sources as “meat.” The NFU policy says common names given to meat and animal products are widely understood by consumers to be the tissue and flesh of animals that have been slaughtered for food. “Lab-grown products are likely to be produced by large companies, including the major global meatpackers, which will exacerbate the anti-competitive practices that currently face farmers and ranchers,” Johnson adds. “Fairly and accurately labeling animal cell culture products would provide some protection for family farmers’ and ranchers” market share.”

Northwest Region Potato Stocks on December 1, 2018 Totaled 183 million Hundredweight

Potato stocks in Idaho on December 1, 2018 totaled 100 million cwt. Disappearance of the Idaho crop to date was 38.6 million cwt. December 1 potato stocks in Oregon totaled 21.0 million cwt. Disappearance to date was 7.5 million cwt. In Washington, December 1 potato stocks totaled 62.0 million cwt. Disappearance to date totaled 44.4 million cwt.
Nationally, the 13 major potato States held 283 million cwt of potatoes in storage December 1, 2018, up 3 percent from December 1, 2017. Potatoes in storage accounted for 68 percent of the fall storage States' 2018 production, 1 percentage point less than last year. Potato disappearance, at 135 million cwt, was up 7 percent from December 1, 2017.

Season-to date shrink and loss, at 13.4 million cwt, was 13 percent higher than the same time last year. Processors in Idaho and Malheur County, Oregon used 24.1million cwt of potatoes for the season, down 3 percent from December l, 2017. In Washington and other Oregon counties, 36.3 million cwt of potatoes had been used by processors for the season, up 10 percent from the previous year. Processors in the 8 major States used 72.6 million cwt of potatoes for the season, up 5 percent from December 1, 2017. Dehydrated usage accounted for 12.5 million cwt of the total potatoes processed, up 18 percent from the previous year.

Montana Farm Bureau extremely pleased with Farm Bill signing

The Montana Farm Bureau is extremely pleased that the 2018 Farm Bill has been signed into law by President Donald Trump. Hans McPherson said, “With the signing of the 2018 Farm Bill, we are pleased that farmers and ranchers have the security they need and the ability to continue to produce the safest, most abundant, most affordable food in the history of the world. We are pleased that those without means will be able to have the food and nourishment they need to sustain themselves. Farmers truly want everyone who is hungry to be fed and this is why the 2018 Farm Bill is a win-win not only for farmers, but consumers.” MFBF National Affairs Director Nicole Rolf added, “We are so pleased to see the 2018 Farm Bill signed in to law in 2018. It really came down to the wire, but thanks to the good work of House and Senate Ag Committee leadership, as well as our own Montana Senators and Congressman, a very good product has become law and many of Farm Bureau’s priorities are included. Crop insurance is maintained, the sugar program was protected, Title 1 commodity programs are maintained and even enhanced, and certain programs in the conservation title still provide farmers and ranchers useful tools that benefit their farms and ranches, as well as the environment, and much more. This is all good news for Montana agriculture.” The Montana Farm Bureau looks forward to working with its farmer and rancher members as the new bill is implemented.

Gianforte and Loebsack’s Rural EMS Bill Now Law

WASHINGTON – President Trump today signed into law the Supporting and Improving Rural EMS Needs (SIREN) Act of 2018. Congressmen Gianforte and Loebsack’s bipartisan law reauthorizes a federal grant program that helps rural communities and the EMS providers that serve them. “Our rural EMS providers are the first line of care for Americans in more remote areas who face a medical emergency,” Gianforte said. “The SIREN Act provides access to resources so that EMS providers in our rural areas have the training and equipment they need to get the job done. I appreciate working with Congressman Loebsack to get the SIREN Act signed into law.” “Patients in rural areas have the same medical conditions requiring an emergency response as those in urban areas do, however many rural EMS agencies face unique challenges in delivering quality care,” said Loebsack. “I am pleased to have worked with Rep. Gianforte to get this bipartisan legislation signed into law to invest in our rural communities and ensure they have the tools necessary to treat patients no matter where they live.” The SIREN Act creates a $10 million grant program for EMS agencies in rural areas to help address issues they face, including personnel recruitment and retention, providing continuing education and preparedness training, purchasing updated equipment, maintaining adequate coverage during prolonged transport times, and obtaining qualified medical oversight. The SIREN Act was included in the 2018 Farm Bill, which President Trump signed into law.

USDA To Propose Rule to Tighten Job Requirements For People On Food Aid

OMAHA (DTN) -- USDA on Thursday will propose a rule to tighten job requirements and state rules around people on food aid who are classified as "able-bodied adults without dependents." USDA is attempting to implement, by rulemaking, a plan that got hung up in Congress, created a partisan divide in the House, was rejected in the Senate and eventually by the full Congress in adopting the 2018 farm bill. The move comes as comes as President Donald Trump is scheduled to sign the 2018 farm bill into law Thursday afternoon. Agriculture Secretary Sonny Perdue indicated in a press call Wednesday that USDA's moves would save $15 billion over 10 years "and give President Trump comfort enough to support a farm bill he might otherwise have opposed." President Trump has repeatedly pushed for tighter SNAP work requirements through tweets and comments on the farm bill in the past several months. Those provisions failed to make it into the final farm bill, which passed both chambers of Congress last week with broad bipartisan support. Perdue told reporters Trump will sign the farm bill that reinforces the farm safety net, but Congress "missed an opportunity" to tighten the rules for the Supplemental Nutrition Assistance Program, so USDA will move ahead and do so itself. Perdue said the welfare reform mantra of the 1990s that federal handouts "are a second chance, not a way of life" has gotten worn down by "out of control" state flexibility standards under SNAP. With unemployment at 3.7% unemployment nationally -- the lowest since 1969 -- Perdue said it's reasonable to expect able-bodied people to look for work. Perdue and other USDA officials said the move will provide able-bodied adults without dependents more opportunities through work