USDA Stocks/Prospective Plantings Reports Show a Lot of Soybeans

A DTN recap of the USDA Grain Stocks and Prospective Planting reports today shows the U.S. definitely has its share of soybeans, with a whole lot more on the way. Quarterly soybean stocks rose to a record 2.11 billion bushels. That’s 21 percent higher than March of 2017. Soybean acres also officially took the lead over corn acres in 2018’s planting intentions. USDA estimates 89 million acres of soybeans will be planted in 2018, with corn right behind at 88 million acres. Both of those estimates are down from last year, by one percent for soybeans and two percent for corn. USDA says the lower numbers are a consequence of a lot of grain stocks on hand, along with lower commodity prices. The estimate of 2.11 billion bushels of soybeans follows a disappointing marketing quarter for the crop. Between December of 2017 and February of this year, only one percent of the total soybean stocks were moved, nine percent lower than the same time frame from the previous year. USDA estimates that corn stocks were at 8.9 billion bushels as of March 1, three percent higher than last year. The report says farmers are projected to plant 47.3 million acres of wheat, three percent higher than a year ago but still the second-lowest acreage number since the early 1900’s. Cotton producers are predicted to plant 13.5 million acres, up seven percent from last year and higher than most pre-report expectations.

Conaway Says Democrats Wrong to Oppose SNAP Changes

House Ag Committee Chair Mike Conaway says Democrats are not accurately portraying the changes he’s proposing to overhaul the Supplemental Nutrition Assistance Program. Politico quotes Conaway as saying that Democrats on the committee will see the difference between what he’s proposing and “what they’ve been told Republicans are doing,” and will see the value in the idea. Conaway’s proposals include tightening work requirements and eligibility for the SNAP program. The proposals include eliminating broad-based categorical eligibility, breaking the connection between SNAP and a program that subsidizes utility expenses for low-income households, and imposing stricter work requirements on roughly five million people. Democrats also oppose what would be a mandatory employment and training program at the state level. An estimated one million people would no longer be eligible for the program. Democrats also say benefits would be slashed by $20 billion over a decade under the Conaway plan. Conaway says he doesn’t know where that $20 billion figure came from but says no one would be kicked off SNAP. The one million people leaving the program would either have a job that pays more than 130 percent of the poverty level, or they decide not to work at least 20 hours a week or enroll in a training program.

Community Bankers Announce Farm Bill Recommendations

As Congress ramps up its work on a new Farm Bill, the Independent Community Bankers of America released a white paper with its recommended principles for the new bill. ICBA President and CEO Camden Fine says his association believes a new farm bill is vitally important to the nation’s producers and the independent community bankers who work so closely with them. “A new farm bill provides a multi-year framework for farmers and their community bank lenders to engage in longer-term business planning,” Fine says. “It also offers an essential portfolio of risk-management tools.” The white paper asks Congress to adequately fund commodity programs and crop insurance, both of which are key risk-management tools that enable producers to obtain farm loans. They also are asking Congress to enhance the USDA’s Farm Loan Programs. They provided more than $7.7 billion worth of loans to producers in 2017. The loan programs supported 42,000 farmers and ranchers by increasing loan limits, providing greater flexibility for loan approvals while eliminating unnecessary regulatory burdens. Other recommendations included sustaining USDA Rural Development Programs, as well as reforming the Farm Credit System. 

Cargill Installs Controlled Atmosphere “Stunning” System in Canada Operation

Cargill announced today that it’s installing a $22 million Controlled Atmospheric Stunning system at its poultry facility in London, Ontario. Cargill credits the investment to increasing customer and consumer demand for better animal welfare standards in food production. There are also electric stunning systems available to processing plants. Both electric and atmospheric systems are acceptable, approved, and proven as more humane ways to harvest animals. However, Cargill says more and more consumers are in favor of CAS systems in poultry facilities. Cargill first began using a controlled atmosphere system at a U.S. poultry plant more than ten years ago. They were also leaders in the use of third-party remote video auditing. Cargill’s global head of poultry welfare says, “We are dedicated to animal welfare because it’s the right thing to do.” Cargill says it’s made more than $900 million in investments to its North American protein business in recent years.

USDA: No Consolidation in Cow-Calf Operations for Five Years

There’s no question that agriculture has seen its share of consolidation across several sectors. The one major exception is beef production, more specifically as it relates to cow-calf and stocker production. A recent report from the Economic Research Service at USDA shows that all areas of livestock production, with the exception of beef, have fewer and larger operations. James MacDonald, a senior economist with the Economic Research Service, says developments in confinement feeding, along with changes in housing and feeding, brought down the need for a lot of additional labor on farms. Each farm family can more effectively manage larger herds and flocks. Back in 1987, the average beef cow herd was 89 cows. Also back then, the midpoint dairy herd was 80 cows. Ten years later, the average beef cow herd had grown to 100 animals while dairy had grown to 140 head. The latest data shows no change for the average beef cow herd, while average dairy cow herds were up to 900 back in 2012. The midpoint broiler farm doubled between 1987 and 2012, coming in at 680,000 birds. Mid-sized hog operations are 33 times larger than they were three decades ago. 

MLB Fans to Consume a Lot of Hot Dogs This Season

As the season kicks off today, the National Hot Dog and Sausage Council estimates that Major League Baseball fans will consume around 19 million hot dogs this season. Fans will also consume up to 4.6 million sausages during the summer season. The combined hot dog and sausage total could stretch all the way across the United States from Seattle, Washington, to Atlanta, Georgia. That hot dog total by itself would reach as high as 5,332 One World Trade Centers, the tallest building in the western hemisphere and the sixth-tallest in the world. Hot Dog and Sausage Council president Eric Mittenthal says baseball and hot dogs have been a love affair for multiple decades. “Year after year, hot dogs continue to hit it out of the park at the concession stand,” he says. “There’s simply no replacing the unshakable bond between baseball and hot dogs.” Los Angeles Dodgers fans are expected to consume more than 3 million hot dogs, the largest number in the league. San Francisco Giants fans take the top spot in the sausage race by consuming a projected 475,000 this season. The Milwaukee Brewers are the only team in baseball that’s expected to sell more sausages than hot dogs.

All Wheat Acres Planted in the Northwest up 3 percent from 2017 Barley Acres Planted in the Northwest up 4 percent Corn Acres Planted in the Northwest up 2 percent All Hay Acres Harvested in the Northwest down 4 percent

Wheat producers in Idaho, expect to plant 1.24 million acres of wheat for harvest this year, up 6 percent from 2017. Winter wheat acres planted are estimated at 780,000 acres, up 8 percent from last year. Planted acres of Durum wheat in Idaho, are estimated at 20,000 for 2018, down 20 percent from the previous year. Spring wheat planted acres, excluding Durum, are expected to total 440,000 acres, up 5 percent from last year. Total acres planted to wheat in Oregon are estimated at 790,000 acres for 2018, up 2 percent from 2017. Winter wheat accounted for 720,000 acres, up 3 percent from 2017. Other spring wheat planted is estimated at 70,000 acres, down 7 percent from a year ago. Washington is estimated to have 2.23 million total acres planted to wheat in 2018, up 2 percent from last year. Winter wheat planted acres are expected to total 1.70 million acres for this year, unchanged from 2017. Spring wheat acres planted are estimated at 530,000 acres, up 7 percent from last year. Nationally, all planted wheat acres are expected to total 47.3 million acres, up 3 percent from 2017. Winter wheat acres are estimated at 32.7 million acres, up slightly from 2017. Durum wheat planted acres in the United States for 2018 are estimated at 2.00 million acres, down 13 percent from the previous year. All other spring wheat is estimated at 12.6 million planted acres, up 15 percent from 2017. Acres planted to barley in Idaho for 2018 are estimated at 560,000 acres, up 6 percent from 2017. Oregon barley growers are expected to seed 35,000 acres, down 26 percent from last year. In Washington, acres planted to barley are estimated at 105,000 acres, up 11 percent from the previous year. Total barley planted acres in the United States is estimated at 2.29 million acres for 2018, down 8 percent from 2017. Corn planted acres in Idaho are expected to total 330,000 acres for 2018, down 3 percent from last year. Oregon is estimated to plant 95,000 acres, up 12 percent from 2017. Washington corn growers are expected to plant 180,000 acres this year, up 6 percent from the previous year. Total acres of corn planted in the United States are expected to total 88.0 million acres, down 2 percent from last year. All hay acres expected to be harvested in Idaho are estimated at 1.41 million acres, down 1 percent from 2017. In Oregon, all acres to be harvested for hay are estimated at 1.01 million acres, down 8 percent from a year ago. All hay harvested acres in Washington is expected to be 730,000 acres down 1 percent from last year. Nationally, total acres harvested for hay are estimated at 53.7 million acres, down slightly from the previous year.     All Wheat Stocks Stored in Northwest Region Down 23 Percent from March 1, 2017 All wheat stored in all positions on March 1, 2018 totaled 39.0 million bushels in Idaho, down from 55.4 million bushels a year ago. Off-farm stocks were down 41 percent, while on-farm stocks were unchanged compared to the previous year. In Oregon, wheat stored in all positions totaled 22.6 million bushels, down from 27.7 million bushels a year ago. Off-farm stocks were down 12 percent, while on-farm stocks were down 50 percent compared to the previous year. In Washington, wheat stored in all positions totaled 82.9 million bushels, down from 104 million bushels a year ago. Off-farm stocks were down 18 percent, while on-farm stocks were down 39 percent compared to the previous year. Nationally, wheat stored in all positions totaled 1.49 billion bushels, down from 1.66 billion bushels a year ago. Off-farm stocks were down 6 percent, while on-farm stocks were down 26 percent compared to the previous year.  Barley stocks in all positions on March 1, 2018 totaled 34.9 million bushels in Idaho, down from 36.6 million bushels a year ago. Off-farm stocks were down 9 percent, while on-farm stocks were up 4 percent compared to the previous year. In Oregon, barley stored in all positions totaled 640,000 bushels, up from 617,000 bushels a year ago. Off-farm stocks were down 9 percent, while on-farm stocks were up 30 percent compared to the previous year. In Washington, barley stored in all positions totaled 2.84 million bushels, down from 4.23 million bushels a year ago. Off-farm stocks were down 29 percent, while on-farm stocks were down 46 percent compared to the previous year. Nationally, barley stored in all positions totaled 129 million bushels, down from 145 million bushels a year ago. Off-farm stocks were down 8 percent, while on-farm stocks were down 14 percent compared to the previous year. 

MONTANA Off-farm corn stocks in Montana on March 1, 2018 were 67,000 bushels, down 39 percent from March 1, 2017, according to the March 1 Agricultural Survey and March Grain Stocks Report conducted by the Mountain Regional Field Office of the National Agricultural Statistics Service, USDA. All oat stocks in Montana were estimated at 598,000 bushels, down 22 percent from last year. On-farm oat stocks were 540,000 bushels, down 18 percent from a year ago. Oats stored off-farm were down 46 percent from last year to 58,000 bushels. Montana barley stocks in all positions on March 1, 2018 were 24.94 million bushels, down 14 percent from a year ago. Barley stored on farms was 13.50 million bushels, down 21 percent from last year. Off-farm barley storage was down 5 percent from a year ago to 11.44 million bushels. All wheat stocks in Montana on March 1, 2018 were 80.99 million bushels, down 25 percent from March 1, 2017. All wheat stocks stored on farms amounted to 51.00 million bushels, down 29 percent from a year ago. All wheat stored off farms amounted to 29.99 million bushels, down 16 percent from a year ago. Durum wheat stocks on March 1, 2018 were 11.93 million bushels, down 11 percent from a year ago. Other Montana grain stocks were not published separately to avoid disclosing data for individual operations.   

PROSPECTIVE PLANTINGS – MARCH 1, 2018 MONTANA HIGHLIGHTS As of March 1, Montana growers intend to plant 115,000 acres of corn for all purposes in 2018, unchanged from last year's plantings, according to the March 1 Agricultural Survey conducted by the Mountain Regional Field Office of the National Agricultural Statistics Service, USDA.  The area expected to be seeded to oats, at 70,000 acres, is unchanged from a year ago. Growers intend to plant 720,000 acres of barley in 2018, down 50,000 acres from last year's actual plantings. All wheat acreage is expected to total 4.95 million acres for 2018. Winter wheat seeded last fall for harvest in 2018 is estimated at 1.60 million acres, down 150,000 acres from the 2017 crop, and the lowest plantings since 1997. Growers intend to seed 850,000 acres of Durum wheat this year, down 40,000 acres from last year. Growers intend to seed 2.50 million acres of spring wheat this year, unchanged from last year. Hay producers in the State intend to harvest 2.70 million acres this year. This is up 150,000 acres from the acreage cut for hay in 2017. Montana canola producers intend to plant 145,000 acres in 2018, down 10,000 acres from 2017. Flaxseed producers intend to plant 45,000 acres in 2018, down 7,000 acres from last year. The area planted to sugarbeets is expected to be up 200 acres from last year's actual plantings to 43,100 acres. Dry edible bean acreage is expected to total 315,000 acres, up 15 percent from the 275,000 acres planted in 2017. All garbanzo beans (chickpeas) area planted is expected to total 308,000 acres, up 39,000 acres from 2017. Lentil acres planted for 2018 are expected to total 530,000 acres, down 200,000 acres from last year. All dry edible pea area planted is expected to total 390,000 acres, down 135,000 acres from last year. Austrian winter pea area planted is expected to total 15,000 acres, down 5,000 acres from 2017. 

Restrictions lifted on hay hauling for winter weather relief

Requirements for commercial hay hauling have been waived due the impact of the severe weather on hay supplies. Yesterday, Governor Steve Bullock signed an Executive Order that exempts vehicles from certain size and weight limits for a specific, limited time during emergency circumstances. The exemption will be good for 30 days.The EO would allow for baled livestock feed for winter relief efforts within the boundaries of Montana to exceed the statutory limits of weight by 20 percent. It would also allow nighttime transport of oversized hay for loads.“Relieving certain requirements for commercial motor vehicle carriers in Montana will assist Montanans by reducing restrictions on the transport of hay forage,” said Bullock.“With the severe weather over the past few months, many ranchers are needing to purchase additional hay to feed their livestock,” noted Montana Farm Bureau President Hans McPherson. “We had excessive snow that has melted which has resulted in unbelievable mud. During daylight hours, there is too much mud to haul hay to feed yards on ranches, so this EO will be a huge help to bring hay loads in while the ground is still frozen.”The EO noted that commercial vehicle carriers while operating under the Order, may not require or allow fatigued drivers to operate a motor vehicle.For details specific details, contact the Montana Department of Livestock, 406-444-0528. 

Wolf population continues to grow

WDFW spent $1.27 million last year in wolf management…

Northeastern Washington continues to be the area where the bulk of Washington’s gray wolf population resides and is growing. According to an annual statewide survery, the population of wolves in the state has grown for the ninth consecutive year up to 122 wolves.

Those 122 wolves make up 22 packs and 14 successful breeding pairs, the Washington Department of Fish and Wildlife said.

In 2016, it was said that there were 115 wolves in 20 packs and 10 breeding pairs.

“We’re glad to see that Washington’s wolf population continues to grow, and are particularly excited to see a notable increase in the number of successful breeding pairs compared to past years,” said Mitch Friedman, Executive Director of Conservation Northwest. “It’s important to note that social tolerance for wolves continues to grow as well, evidenced in part by growing uptake of deterrence measures by livestock operators and reduced acrimony in the state legislature.”

Three wolves were killed during the year by Colville Tribe members in a limited hunting season on the reservation.

The Washington Department of Fish and Wildlife spent $1.27 million last year in wolf monitoring and efforts like range riders to prevent wolf attacks on livestock. The WDFW said that the wolf population has grown from year to year by an average of 31 percent.

Fifteen of the 22 known wolf packs are located in Ferry, Stevens and Pend Oreille county.

“We are disappointed that more wolf packs have not yet become established in Washington’s North and South Cascades, despite quality habitat available in those areas,” said Friedman. “The recent confirmation of at least one wolf in Western Washington is exciting news, and unconfirmed reports continue to come in from areas south of Interstate 90. It’s our hope that in 2018 we’ll see further expansion of wolves into the South Cascades and Western Washington, and the progress towards state recovery goals such confirmations would bring.”

New packs that are classified this year include the Leadpoint, Togo, Ground Flats and Blue Mountains Pack. Two previously classified packs – the Skookum and Sherman Packs – were not counted because no more than one animal from the pack could be located.

Stevens County Commissioner Don Dashielle said to the Spokesman-Review that he was hoping to see a reduction in the number of wolves or at least a spreading of the distribution of wolves that would allow for delisting wolves from state and federal endangered species protections.

“We continue to have most of the wolves and wolf problems,” he said.
Wolves killed at least eight cattle and injured five others last year. Two wolves from the Smackout Pack and one from the Sherman Pack were lethally removed to discourage cattle attacks.

WDFW processed two claims totalling $3,700 to compensate livestock producers for their losses.

Trump Talks China Trade With Germany, France

President Donald Trump spoke with both German Chancellor Angela Merkel and French President Emmanuel Macron on China trade issues, according to a readout of the discussions provided by the White House. Trump raised issues on intellectual property theft by China and other trade practices by the country with Merkel. "The president and the chancellor discussed joining forces to counter China's unfair economic practices and illegal acquisition of intellectual property," the White House said.The goal was "to reaffirm the cooperative relationship between" the two countries. With Macron, the discussions were on "trade practices between the United States and European Union and the next steps in addressing China's unfair trade practices," the White House said in separate statement.

Washington Insider: Agenda for Rest of 2018

There still is a cloud of uncertainty regarding the Republican agenda for the rest of the year after passing a $1.3 trillion omnibus spending package, The Hill says. It expects that legislative activity will slow down dramatically after the Easter recess as incumbents seek to spend more time campaigning ahead of the fall midterm elections.There also will be a fights over what should be debated and how political these battles will be—in case you thought they couldn’t get more political than they already are. Still, there are several “big deal” efforts outstanding that haven’t had much attention recently—and which the leadership hasn’t talked about much.Infrastructure is one such issue. Pressure is growing for it to take center stage. However, there are deep divisions within the party over the scope of the package, how much it should cost and how to pay for it.For example, Senate Energy Committee Chairwoman Lisa Murkowski R, Alaska, wants it to include energy infrastructure development. Commerce Committee Chairman John Thune R, S.D., wants it to include broadband development in rural areas. Sen. James Inhofe (R-Okla.), says he wants the package to focus on traditional projects such as roads and bridges.And while Republicans agree that the package should be paid for with a mix of public and private financing, there’s no agreement on how much taxpayers should kick in, The Hill says.Conservatives, led by Rep. Mark Meadows (R-N.C.), chairman of the House Freedom Caucus, said at the joint Senate–House GOP retreat in West Virginia that the federal government should contribute no more than $200 million. Other GOP lawmakers argue that Congress needs to spend more money to achieve something close to the $1 trillion package that President Trump promised during the 2016 campaign.It the infrastructure package stalls, GOP leaders are looking at smaller, less-controversial bills. For example, reauthorization of the Federal Aviation Administration and another bill responding to the opioid epidemic, sponsored by Sen. Rob Portman R, Ohio, are options.Portman also has a bill sponsored with Sen. Tim Kaine (D-Va.), to expand Pell Grant eligibility to help workers enter short-term training programs for technically demanding jobs. This effort already has White House support, The Hill says.However, two issues that sparked intense debate in Congress in February and March, immigration and gun violence, are not expected to come to the floor anytime soon. The omnibus included a measure known as the Fix NICS Act designed to improve reporting to the National Instant Criminal Background Check System, dimming the chances of a vote on universal background checks, which Democrats are demanding.“Republicans lobbied hard to get Fix NICS in the budget so that they didn’t have to have an open debate on the Senate floor,” said Sen. Chris Murphy (D-Conn.), an outspoken voice on gun violence.Legislation to curb the rising costs of insurance premiums, which are expected to rise faster because of the repeal of the Affordable Care Act’s individual mandate, also is in limbo because of a fight over abortion language. Still, the most pressing priority after the break will be to confirm Mike Pompeo and Gina Haspel, Trump’s picks to head the State Department and CIA, respectively, The Hill said.Pompeo is likely to have a relatively smooth ride to confirmation, as he received 66 votes to serve as CIA director last year. But, Haspel’s prospects are cloudier as senators have questions about her record on using harsh interrogation tactics. Last week, Sen. John McCain (R-Ariz.), asked Haspel, now the deputy director of the CIA, to explain her role in the agency’s enhanced interrogation program.In addition, Sen. Rand Paul (R- Ky.), has accused her of helping to develop techniques that the federal government now classifies as torture and of destroying video evidence.In addition, the Senate has a backlog of 131 nominees. Majority Leader McConnell set up six nominations before the Senate left for recess. Debate and procedures could easily eat up weeks of April floor time.As the midterm elections near, GOP leaders will look for bills that help their candidates go on the offensive in September and October, The Hill says. It notes they are flirting with moving another tax-reform bill and daring vulnerable centrist Democrats to oppose it.On another front, the Senate Foreign Relations Committee is gearing up to revive the chamber’s war authorization debate. Chairman Bob Corker (R-Tenn.), has scheduled a markup of an authorization for the use of military force for April 19. However, Corker may have difficulty getting floor time for the measure, which divides Republicans. Many in the party don’t want to place limits on the president’s war powers.So, there’s still plenty to do, and plenty to fight about in the area of trade policy and the reauthorization of the new farm bill—which will be highly controversial. These are debates producers should watch closely as they emerge, Washington Insider believes. 

Lighthizer Hopeful of New NAFTA Deal

U.S. Trade Representative Robert Lighthizer told CNBC television Wednesday he is “hopeful” there will be compromise and a deal reached on the North American Free Trade Agreement. His comments follow those from Canadian Prime Minister Justin Trudeau (True-doh), who earlier this week said a “win-win-win deal is not only possible but likely.” Lighthizer said Wednesday he is optimistic the three NAFTA members can “get something done in principle in the next little bit.” He acknowledged there is a short window to reach an agreement, as Mexico will hold summer elections and the U.S. will hold midterm elections in the fall.  Round eight of the negotiations are scheduled for Washington, D.C., in early April. In the last round of talks, some agricultural topics advanced, including sanitary and phytosanitary measures. However, the American Farm Bureau Federation reported there was much work left to be done on market access, referring to the U.S.-Canada dairy trade issue.

KORUS Agreement a Relief to Agriculture

Agriculture was ‘left out’ of the U.S.-Korea Free Trade Agreement renegotiation effort, a relief to the sector. For many in agriculture, there was more to lose than gain in the renegotiation effort. The U.S. is the largest supplier of beef to Korea and the second largest pork supplier. Data from the U.S. Meat Export Federation shows red meat exports to Korea set a record last year of $1.7 billion, up 19 percent from the prior year and up 69 percent from 2012. USMEF spokesperson Joe Schuele (She-lee)  told Meat industry publication Meatingplace the revised KORUS is "excellent news" for U.S. beef and pork because it ensures the U.S. "will continue to be able to serve the growing South Korean market." South Korea is also a top-five importer of U.S. corn, buying more than 5.3 million metric tons in the last marketing year, which is more than 200 million bushels. Under the new agreement, South Korea will limit its steel exports to the U.S. and allow more imports of U.S. autos. The U.S. agreed to exempt South Korea from Trump’s steel and aluminum tariffs.

NCGA Submits Comments on PES Proposed Settlement

The National Corn Gowers Association says poor financial decisions and management caused a Pennsylvania refinery to file for bankruptcy protection, not the Renewable Fuel Standard. NCGA this week submitted formal comments to the U.S. Department of Justice on the proposed settlement agreement between Philadelphia Energy Solutions, or PES, and the Environmental Protection Agency. The settlement stems from the outstanding RFS compliance obligations the refiner has included in its Chapter 11 bankruptcy filing. NCGA claims the settlement would undermine the RFS. The association’s comments state the proposed settlement would allow the refiner “to walk away” from more than half of its outstanding RFS obligations and allow its parent companies to avoid liability. NCGA President Kevin Skunes says the proposal “would have negative policy implications for the RFS and future compliance with the Clean Air Act,” as the settlement does not hold all parties liable for violations of the Clean Air Act. The bankruptcy court will decide on the settlement agreement on April 4th.

Secretary Perdue Announces Third “Back to Our Roots” RV Tour

Agriculture Secretary Sonny Perdue will hit the road again next week in his third “Back to Our Roots” RV tour. Perdue will start the tour Tuesday to hear ideas and concerns from farmers and others. Joining Perdue is Administrator Linda McMahon, the head of the Small Business Administration, for part of the tour. The tour spans from Tuesday to Friday and includes stops in Michigan, Ohio and Kentucky. While Congress works on the next farm bill, Perdue says the tour serves as an opportunity to hear “directly from the American people in the agriculture community.” This is Secretary Perdue’s third “Back to Our Roots” tour since taking office just under a year ago. On his first tour, in August of 2017, Secretary Perdue toured Wisconsin, Minnesota, Iowa, Illinois and Indiana. In September of 2017, Secretary Perdue traveled on his second tour to Connecticut, Massachusetts and New Hampshire. Complete details of the tour can be found online at www.usda.gov.

Global Crop Protection Groups Announce Data Transparency

Global crop protection associations have agreed to a safety data transparency initiative. Crop Life America announced the partnership with its European counterpart as a voluntary commitment to enable more public access to pesticide product safety data from non-commercial use. Doing so, the associations say, will help explain the existing regulatory process, focusing on the European Union, and to address the safety, efficacy and benefits of crop protection products. The initiative stems from the global pesticide industry's commitment to transparency, responsibility and sustainability. In the U.S., federal law requires the Environmental Protection Agency to make pesticide safety data available to the public, which has made the U.S. a world leader in transparency and access to the public. Crop Life America says the association supports a “continuing conversation” with the public on safety issues and the “continued transparency” of pesticide safety data around the world.

Washington State Salmon Farms to Comply With Phase Out Legislation

The operator of salmon farms in Washington State says it will comply with legislation ordering the phase-out of operations by 2025. Cooke Aquaculture says it is "deeply disappointed" in the action by the state legislature and Washington Governor Jay Inslee. However, in a recent company news release, officials say Cooke Aquaculture "will respect the wishes of the legislature." Last month, a spokesperson for the company said: "Any ban on Atlantic salmon farming will be based purely on emotion and ideology, not science." Washington's salmon farms have operated in Puget Sound since the 1980s, but Cooke owns all operations now. The bill by Washington State lawmakers follows the collapse of a pen structure owned by Cooke that allowed the escape of 250,000 salmon. The company says it will evaluate operations and investments in the state moving forward, as it prepared to comply with law. 

U.S. and South Korea have agreed on changes to the existing U.S.-Korea Free Trade Agreement

Today’s announcement that the U.S. and South Korea have agreed on changes to the existing U.S.-Korea Free Trade Agreement (KORUS) is a relief to a U.S. meat industry dependent on exports to key markets like South Korea.   “The announcement of a successfully revised KORUS trade agreement comes as excellent news for the U.S. beef and pork industries because it helps ensure that we will continue to be able to serve the growing South Korean market and a critically important customer base,” U.S. Meat Export Federation spokesman Joe Schuele told Meatingplace.The United States is the largest supplier of beef to Korea and trails only the European Union as the second-largest pork supplier. U.S. red meat exports to Korea set a record last year of $1.7 billion, up 19 percent year-over-year and up 69 percent from 2012.Under KORUS, most U.S. pork products now enter Korea duty free. The duty on U.S. beef has been reduced from 40 percent to 21.3 percent and will continue to decline each year until it is eliminated by 2026.“It is especially important that these tariff rate reductions are maintained,” said Schuele, “because the other major pork and beef suppliers to Korea also have free trade agreements with similar market access terms.”The U.S. and South Korea reached an agreement in principle to amend a decade-old free-trade pact in what the Los Angeles Times called a “modest” victory for President Donald Trump and the first such deal under his toughened approach to America's economic partners.Under the deal, South Korea agreed to limit its steel exports to the United States and made concessions on auto imports. In return, the U.S. agreed to exempt South Korea from the 25 percent tariff on steel that Trump announced this month. 

MDA Announces Noxious Weed Trust Fund Grant Awards

Helena, Mont. - The Montana Department of Agriculture and Noxious Weed Management Advisory Council has awarded over $1.74 million for the development and implementation of noxious weed management programs in March 2018. The grants assist counties, conservation districts, local communities, tribes, researchers and educators in efforts to combat noxious weeds in Montana.  57 local cooperative projects were recommended for funding at a total of $1,218,935 or 70% of all dollars awarded. Ten research projects were recommended for funding at $248,236 or 14% and 11 educational projects are recommended for $279,681 or 16%. Combined research and educational projects recommended for funding total $527,917 or 30% of all funding available. In addition to the $1.74 million grant hearing awards, each of the 56 counties and 7 reservations in the state are eligible to receive $7,500 per year. The Montana Noxious Weed Trust Fund grant program was established by the Montana Legislature in 1985.  The advisory council reviews applications, hears applicant testimony, and provides funding recommendations to the director for final approval. Funding is typically passed through a governmental organization, local weed district, conservation district, extension office, or university.  A compiled list of award recipients is available at http://agr.mt.gov/Noxious-Weed-Trust-Fund-Grants. 

Washington Insider: Chinese Agriculture and Food Tariffs Could Have Significant Effect on Farm Trade

China’s tariff response to proposed U.S. trade sanctions promises to have big impacts on global trade in farm goods – with certain meat, fruit and nuts among the sectors most affected.

The Chinese agriculture ministry has published a list of 128 products that will have additional tariffs applied if the U.S. pushes ahead with actions announced by President Donald Trump on March 22.

While some of these items are of little importance to U.S. exporters, others are worth hundreds of millions of dollars. And for products such as pork, new tariffs will make it harder for the U.S. to compete with key rivals – notably the European Union and Canada – in what is by far the world’s largest market.

If confirmed, China’s retaliatory measures would see tariffs of 15% put on various fruit and nut products, along with wine and modified ethanol.

The tariffs would kick in unless the U.S. and China are able to resolve differences within a "stipulated time."

A second tranche of products would face 25% tariffs after China has “further evaluated the impact of U.S. measures on China.” This second list includes not only pork but also pig offal - a product of huge importance in bilateral trade.

U.S. exports of pig products to China were worth more than $1 billion last year when accounting for both mainland China ($663 million) and Hong Kong ($415 million). Around half of those sales were offal.

With Chinese import demand currently on the wane however, new Chinese tariffs could not come at a worse time for U.S. exporters who have already seen their market share eroded in recent months.

Conversely, the EU and Canada could see big gains if the US-China trade war is not averted. It would also favor China’s domestic pig industry, which has been wrestling with a collapse in prices caused by oversupply.

China’s retaliatory list includes a number of products that the U.S. does not ship to the country in any significant quantity. These include cashew nuts, Brazil nuts and desiccated coconut.

Reduced sales to China would have a significant impact on many other products however, notably almonds, walnuts, pistachios and some types of fruit.

If the trade war escalates, U.S. exporters will be concerned that some even more lucrative products may be hit by Chinese tariffs – above all soy. Given the volume of trade affected, developments in ongoing talks between the U.S. and China over trade issues should be closely watched by producers, Washington Insider believes.

US-Korea Trade Pact Revisions

The United States and South Korea agreed to revise a trade pact with U.S. automakers winning improved market access, according to statements from South Korea. "We had heated discussions," South Korean Trade Minister Kim Hyun-chong told reporters in Seoul. "The latest agreement removed two uncertainties."

However, it appears that expanded access to the South Korean market for U.S. agricultural products is not part of the final outcome of the trade deal updates. President Donald Trump March 23 said an amended deal between the U.S. and South Korea “is very close to being finished.” Commerce Secretary Wilbur Ross said the U.S. is close to a “pretty comprehensive resolution” with South Korea, hoping to have a "real announcement" on a trade deal this week.

Timeline for US Tariffs on Chinese Goods over Intellectual Property

President Donald Trump signed an order to put duties on U.S. imports of Chinese products due to results of an investigation under Section 301 of U.S. trade law on China's actions on intellectual property. The actions include taking the issue to the WTO, investment restrictions and 25% duties on Chinese products. The Office of the U.S. Trade Representative (USTR) will publish with 15 days from March 22 a proposed list of Chinese goods that would be subject to the additional tariffs, though the announced list is expected in the next several days.

The list will be published in the Federal Register with a 30-day comment period. There will also be a public hearing conducted on the proposed tariffs. USTR and the interagency Section 301 Committee will examine and analyze the public comments and those garnered from a public hearing. When that review process is completed, there will be a final determination on the tariff actions and the list will be published in the Federal Register

Washington Insider: More Sophisticated Discussions on Trade

During the recent presidential campaign, both candidates were extremely negative on trade and its impacts, and the media mainly let those arguments stand. More recently, there have been a number of more thoughtful analyses presented as doubts grew about the use of “trade balances” used by administration officials to push for changes.

For example, the New York Times recently carried a review of recent trade policies and developments and reported that the increasingly connected world economy in the 1990s and 2000s brought increased competition and some pain to rich countries, along with benefits that only now are more apparent.

No one should be surprised at the backlash to globalization, given the scale of disruption that has resulted from more interconnected economies. What is surprising is that it has arrived now, the Times says.

That’s because globalization, at least in the form we have known it, “leveled off a decade ago.” And that presents a crucial risk of the recent push to re-set the terms of the global economy. That includes tariffs on steel and aluminum and punitive actions against China.

These policies are coming after the major costs of globalization have already been borne, the Times says. And they come just as billions of people who have become integrated into the global economy are starting to become wealthy enough to become valuable consumers.

The anti-globalization drive spreading across the Western world may be too late to recreate the low-tech jobs that were ended--but may be early enough to risk damaging the ability of rich nations to sell advanced goods and services to the rapidly expanding global middle class.

Today’s globalization is entering a new phase, in which cross-border trade in goods and services is steady as a share of the economy and the international flows of capital are lower than they were before the global financial crisis, the Times says. It is now the spread of information that is rising, with different implications for workers in rich countries than the earlier phase.

Starting in the 1990s, improvements in communications and shipping technology widened global competition. Trade deals reduced tariffs and other barriers to commerce. And many once-poor nations became more integrated into the global economy.

This adjustment provided a wave of affordable goods and opened up new markets for rich countries, but it also boosted competition for certain sectors and areas, especially those involved in manufacturing low-tech products.

The flow of goods and services across national borders as a share of all economic activity hovered near 16 percent through the 1980s and early 1990s, then from 1993 to 2008 shot up to 31 percent. There it stopped and bounced around that level, according to data from the McKinsey Global Institute.

At the same time, the international flow of money had a different pattern. Cross-border financial flows peaked in 2007 at 22 percent of world GDP but were down to 6 percent in 2016, about the same as the 1996 level.

Now, McKinsey says “Global manufacturing has already reconfigured itself. We don’t think globalization is over, but it has taken a new form.”

That form consists of greater connectivity and communication. That includes more people using social media platforms to connect with people in other countries, companies relying on freelance labor located around the globe, and small enterprises doing business with partners around the world through the internet.

It is not a form of globalization that endangers factory jobs, but one that could have big consequences in other areas including technologically advanced white-collar jobs. It also creates enormous new opportunities for American and Western European firms.

The MIT economist David Autor and colleagues believe that the current challenge is competition on more technologically complex products, like automobiles, airplanes or microprocessors.

If the latest trade skirmishes do blow up into a trade war, those new barriers to international commerce might also block a long-predicted reward of globalization: a new world of customers.

The rise in global economic integration has meant hundreds of millions of people becoming more connected to the worldwide economy and achieving higher standards of living in the process. In 1990, only 23 percent of the world’s population fit that category. Today 45 percent do, meaning an additional 2.3 billion humans are now able to afford the luxuries that the global economy provides. The Times argues that it’s wrong to view these billions of people only as competition for good jobs. They also have a massive demand for all types of services.

Rather than view globalization as a perpetual onslaught of low wage competition for American workers, NYT proposes the phenomenon makes everyone both a competitor and a customer.

With trade battles looming on the near horizon, the open question is whether the United States and Europe, having already borne the costs of competition with the developing world, will stick with open trade long enough to enjoy its benefits, the Times says.

So, we will see. We have seen an enormous expansion of ag competition that benefitted the United States. The question remains how to insure that access is expanded rather than constrained, and that trade barriers continue to be reduced. This is a policy debate producers should watch carefully as it proceeds, Washington Insider believes.

Smithfield CEO Sees Limited Impact on China Pork Import Duties

China's import duties on U.S. pork may have a limited impact on Smithfield Foods, according to CEO Kenneth Sullivan. China only buys seven percent of Smithfield's fresh pork output and Sullivan said the company may still ship pork to China. "We will find markets," Sullivan said in a Monday analyst call. "We ship to more than 40 countries. We may very well ship to China even with an increased tariff." China has said it may impose duties on pork and other U.S. products in response to the threat of the U.S. setting steel and aluminum duties on Chinese products.

China's WH Group, the owner of Smithfield, has seen its shares come under pressure in the wake of the Chinese tariff announcement, a situation which Sullivan said was an overreaction by traders. He also said the pressure on pork prices may also end up benefitting Smithfield.

April Could See Senate Farm Bill Action

The next farm bill is on track in the Senate and may move as soon as April, Senate Ag Committee Chairman Pat Roberts (R-Kan.) told Bloomberg Government. Work is underway to prepare the Senate version of the farm bill reauthorization, he noted. "We could have a markup in April," Roberts said. "I do not know if it is that first week but maybe the second, and we will see if we can get it done."

Meanwhile, the House farm bill process has slowed considerably or potentially even halted in the wake of Democratic members of the Ag panel halting negotiations over GOP efforts to reform the Supplemental Nutrition Assistance Program (SNAP). Rep. Collin Peterson (D-Minn.), ranking member on the House Ag Committee, claims the Senate bill actually will increase food stamp benefits and does not propose any cuts to the program. "I am going to be supporting the Senate bill, not the House bill," Peterson said. The current farm bill expires on September 30.

China: U.S. Has “Severely Damaged” the Multilateral Trade System

Steel and aluminum tariffs crafted by the Trump administration based on national security have “severely damaged” the multilateral trade system, according to officials from China. In a translated news release, a Chinese trade official says the nation will take legal actions through the World Trade Organization to “maintain the stability and authority” of multilateral trade. The comment came late last week as China announced a list of 128 products to target in retaliatory measures, including U.S. soybeans and pork. China made a World Trade Organization filing Monday to seek consultations regarding the issue. China calls the move by the U.S. a “safeguard measure” as outlined in WTO rules. Being the two biggest economies in the world, China says the U.S. and China must “focus on cooperation” to promote trade relations between the two countries. The first flight of tariffs from China focuses on fruit, wines and ethanol, among other products, worth an estimated $1 billion. The second flight, should China move forward, covers pork, recycled aluminum, and other products.

Trade Tiff with China Serves as Negotiating Primer

A leading U.S. agricultural economist suggests that the trade issues with China serve as a vehicle for negotiations. Purdue University agricultural economist Chris Hurt says China may be simply signaling the U.S. that the nation wants to negotiate, just as the U.S. has seemed to signal to China in crafting the tariffs. That seems to be the case, too, according to action by some Trump administration officials. The Wall Street Journal reported over the weekend that U.S. officials were discussing with China several issues, from finance to manufacturing, which could ease trade tensions. Hurt points to the proposed tariffs on U.S. soybeans in response to the U.S. tariffs on aluminum and steel as a signal of negotiation. He says that China needs U.S. soybeans, and would rather not start a trade war. The list of proposed tariffs by China on U.S. imports also includes a 25 percent tariff on U.S. pork.

Association of Equipment Manufactures Urges Trump to Lift Tariffs

The Association of Equipment Manufacturers is urging President Donald Trump to lift his tariffs on steel and aluminum imports. In a statement, AEM President Dennis Slater said the mere threat of tariffs or quotas has already contributed to higher steel prices, disrupted business operations for equipment manufacturers, and caused uncertainty in the business climate. AEM represents manufacturers of equipment, including agricultural machinery. The association says the tariffs will have negative impact on equipment manufacturers and their employees. Slater said he was encouraged by the exemption offers for some of equipment manufacturers' largest suppliers of steel, but notes that the overall industry exemption process is confusing and burdensome for businesses. Slater concludes that the best thing President Trump can do to mitigate the negative impacts of the tariffs is to “end them, immediately.”

Growth Energy Objects to EPA-Refiner Settlement

Growth Energy has filed comments with the Department of Justice outlining the biofuel industry's objections to a proposed settlement between the Environmental Protection Agency and a Pennsylvania refiner. The proposed settlement, between Carlyle Group-owned Philadelphia Energy Solutions, or PES, and the EPA was filed and drafted as part of the ongoing PES bankruptcy proceedings. The current settlement agreement would pardon the refinery of key obligations under the Renewable Fuel Standard. Growth Energy CEO Emily Skor says the proposed settlement "sends a terrible message to investors who have played by the rules." Growth Energy alleges that the Carlyle Group pulled hundreds of millions of dollars out of the company and failed to make clean energy investments that have allowed other refiners to thrive. Growth Energy says the proposed settlement would unjustifiably allow PES and its parent companies to substantially avoid their environmental obligations, among other things.

Research Finds New Direction for Halting Citrus Greening

The Department of Agriculture’s Agricultural Research Service says a new study has discovered a path forward to halting the citrus greening epidemic. The research is inching closer to helping scientists understand how to block citrus greening from infecting citrus trees. The disease infects citrus trees through bacteria carried by tiny insects. The researchers have found that young insects appear to be resistant to the bacteria, which needs to pass through the insect’s guts to multiply. The next step will be to identify the mechanism for the resistance in the insects so that it might be manipulated to also halt the spread of the bacteria by the adult insects. Researchers say further studies will help in developing ways to block transmission of the disease by insects in citrus groves. If the research pans out, citrus growers will be “in a much better situation in terms of disease control,” potentially saving the U.S. citrus industry. There is much more to learn, but researchers add that the more they learn, the closer the U.S. will “get to moving citrus production past the threat of citrus greening.”

USDA Announces Support for Veterans and Socially Disadvantaged Farmers

The Department of Agriculture Monday announced up to $8.4 million in available funding for training and technical assistance for socially disadvantaged and veteran farmers and ranchers. The funding through USDA’s Office of Partnerships and Public Engagement was originally authorized by the Food, Agriculture, Conservation and Trade Act of 1990. USDA says the grants "seek to enhance the equitable participation" of socially disadvantaged and veteran farmers and ranchers in USDA resources and programs, such as Farm Service Agency loans or grants through the Beginning Farmer and Rancher Development Program. Projects may focus on conferences, training sessions, educational materials, or new programs to help those farmers and ranchers thrive and succeed. Eligible applicants include community-based organizations, networks, or coalitions of community-based organizations, institutions of higher education, and others. 

US Announces More Country Exemptions for Metals Tariffs

US Representative Robert Lighthizer told the Senate Finance Committee late last week that products from the European Union, Australia, Argentina, South Korea and Brazil would be exempted from tariffs on imports of steel and aluminum that went into effect March 23, while negotiations over other potential exemptions continue. Trump already had exempted Canada and Mexico from the import levies for the duration of talks aimed at renegotiating the North American Free Trade Agreement (NAFTA). In a twist, the Trump administration said it might impose import quotas to prevent too much foreign metal from flooding into the United States.Also, the White House gave allies that won exemptions a May 1 deadline to negotiate “satisfactory alternative means” to address what the administration calls the threat to United States national security resulting from its current levels of steel and aluminum imports. The announcement also left the door open for other allies that did not win exemptions, most notably Japan, to negotiate with the administration over tariffs.“Any country not listed in this proclamation with which we have a security relationship remains welcome to discuss with the United States alternative ways to address the threatened impairment of the national security caused by imports of steel articles from that country,” Trump wrote. Perspective on exemptions to U.S. metals tariffs: More than half of the metal the United States imports will now be free from the announced U.S. tariffs.

Rep. Peterson: Farm Bill Extension Likely

A major farm bill impasse continues in the House as Congress has departed for a two-week recess. An extension of the 2014 Farm Bill appears likely as House Ag Committee Ranking Member Collin Peterson, D-Minn., said the bill “is on life support... If you were a betting person you would want to bet on an extension,” he said. House Agriculture Chairman Mike Conaway, R-Texas, is more upbeat, saying there is still time to enact a new farm bill this year.In remarks late last week at a Washington Examiner event, Conaway said he is moving ahead with his committee’s bill next month, with or without Democratic support. Conaway expressed frustration over the impasse during his remarks. “I’m deeply disappointed and hurt, quite frankly, that Collin led his team to the sidelines,” Conaway said, adding that he will welcome Democrats back “with open arms” if they want to re-engage.

Washington Insider: Farm Products on Front Line as Tariffs Risk Trade War

Although the administration and the Congress avoided another government shutdown last week the president announced new tariffs on China on Thursday. Farm groups worried prominently that the possible tariff fight would hit them hard—at a time when they are economically vulnerable. In addition, U.S. equity values fell sharply at the week’s end, rattled, observers say, by the potential for a global trade war.Most media say that both U.S. agriculture and “the president’s rural political base are in China’s sights as it weighs retaliation against the new tariffs on at least $50 billion in Chinese imports,” Bloomberg reported.For example, in its initial counterstrike, China announced a 25 percent levy on U.S. pork imports- a heavy blow to Iowa, the top pork-producing state and a political battleground that swung to Trump in 2016 after going for Democrat Barack Obama in the previous two elections, Bloomberg said.For the administration, U.S. tariffs on Chinese goods and on steel and aluminum imports are the fulfillment of pledges made in his campaign to crack down on perceived trade abuses. Those promises likely helped him win key states including Michigan, Wisconsin and Pennsylvania, Bloomberg said.The administration has offered exemptions on the steel and aluminum tariffs to some countries, and on Thursday announced that it would at least initially shield allies, including Europe, Australia, South Korea, Argentina and Brazil.However, Bloomberg said that the president risks broader damage to the economy and to his political standing if the tit-for-tat with China escalates into a trade war, an outcome investors worry was growing more likely.“We do not want a trade war with the United States or with anybody else. But we are not afraid of it,” Chinese ambassador Cui Tiankai said in a video posted to the U.S. embassy’s Facebook page. “If somebody tries to impose a trade war on us, we will certainly fight back and retaliate. If people want to play tough, we will play tough with them and see who will last longer.”Voters’ perceptions of the economy are always crucial to the political strength of a sitting president and his party. Trump in particular has staked his success on the strength of the economy, repeatedly promising stronger growth and crediting his policies for improvements.He recognized the electoral impact of trade as he signed the tariff order. “It’s probably one of the reasons I was elected, maybe one of the main reasons,” Trump said at the White House.Trump’s order calls for 25% duties on targeted Chinese products to compensate for what the White House says is harm caused to the American economy by China’s policies, according to a fact sheet released by the U.S. Trade Representative. The proposed product list will include goods in the aerospace, information and communication technology and machinery industries. USTR said it will announce the proposed list within “several days.”China has significant leverage over Farm Belt voters who helped elect Trump, Bloomberg said. He captured 61% of the vote in U.S. rural areas and small towns, according to exit polls. The Asian nation is the most important foreign customer for U.S. agriculture. For example, China purchased about one-third of the entire U.S. soybean harvest last year.Any hit to agricultural producers’ markets would be especially painful right now as falling commodity prices already are hurting producers’ incomes, which is expected to drop 6.7% this year to its lowest level since 2006, USDA says on the basis of estimates that assume normal trade relations with China.“Were farmers faced with falling prices for the exports and higher prices at home because of the import tariffs, the popularity of the tariffs would diminish quickly,” Mike Jakeman, a global analyst at the Economist Intelligence Unit told Bloomberg. “This is a high-risk strategy for the U.S. administration and one that is likely to weaken, rather than strengthen, the global economy,” he said.While some lawmakers welcomed the President’s get-tough approach, those with constituencies most vulnerable to Chinese countermeasures urged caution—as U.S. farmers and manufacturers braced for retaliation, Bloomberg said.Rural lawmakers’ anxiety over the possibility was clear as USTR Robert Lighthizer testified before the Senate Finance Committee last week. Sen. Chuck Grassley, R-Iowa, who represents the nation’s biggest soybean-producing state, raised concerns about Chinese retaliation against American farmers. Sen. Michael Bennet, D-Colo., also expressed his displeasure at the potential impact on rural areas.“Our farmers and ranchers want to be able to export the goods that they are producing here in the United States,” Bennet said. “They don’t need sympathy; they need the administration to act responsibly.”So, we will see what happens. Certainly, a trade war would be bad news for many in the US, as well as farmers. And, while the political winds in Congress seem to be blowing increasingly against dangerous trade interventions just now, the administration seems to be in lock step on the new, higher tariffs--a portent of growing tensions to come even as the midterm elections loom, Washington Insider believes. 

Omnibus Bill Includes Several Ag Provisions

The omnibus spending bill passed by the House and Senate last week includes many victories for agriculture. Farm groups applauded the inclusion of the Fair Agricultural Reporting Method, or FARM Act, that Act exempts air emissions from animal waste from being subject to the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, reporting requirements. Senate Agriculture Committee Chairman Pat Roberts says he was “pleased” with the bipartisan deal, which will fund the federal government through the end of the fiscal year. Roberts says the bill gives farmers and ranchers “some regulatory relief.” The omnibus bill prohibits funding to implement regulations requiring livestock haulers to install electronic logging devices on their trucks to monitor time behind the wheel. That comes after livestock haulers were granted another waiver extension to the law recently. Also included is a solution to address the U.S. Forest Service budget for wildfire suppression, extension of current law of the Pesticide Registration Improvement Act, and legislation relating to dairy product labeling.

Spending Bill Includes Victory for Milk Labeling Standards

The omnibus spending bill passed by the House and Senate last week included language regarding milk labeling. The bill directs the U.S. Food and Drug Administration to take action against mislabeled imitation dairy foods, a move the National Milk Producers Federation says is a major victory for farmers and consumers alike. Federation president and CEO Jim Mulhern says the bill will "ensure action," following "years of inaction" by the FDA regarding labeling of plant-based beverages as milk. The language in the bill comes from the DAIRY PRIDE Act, introduced in January in the Senate by Wisconsin Democrat Tammy Baldwin. NMPF said that Congress’ instructions to FDA should restrict the ability of beverages made from plant foods from using the term “milk” on their labels. The language will also affect products misusing other dairy food names such as “cheese” and “yogurt” that are defined in the Code of Federal Regulations and cited in the congressional bill. 

China Retaliations to Harm U.S. Ag

Agriculture groups say trade retaliation from China will "costs farmers their livelihoods."  China announced retaliation efforts to the Trump administration’s tariffs on steel and aluminum. The American Soybean Association says “It’s extremely frustrating” the administration is targeting the nation’s largest trading partner during a time of low farm income. American Farm Bureau Federation President Zippy Duvall echoed those comments, stating Friday that if the trade situation “continues to deteriorate,” the lives of farmers and ranchers “will become more difficult.” China is mainly targeting U.S. steel products, fresh and dried fruits, and even ethanol, along with U.S. pork. The National Pork Producers Council says the tariffs by China will hurt the rural economy. Last year, the U.S. pork industry exported $1.1 billion of product to China, making that country the number two value market for U.S. pork. China is considering a 25 percent tariff on U.S. pork, along with recycled aluminum goods.

Trade Issues Pose Farm Bill Challenges

During a Senate hearing last week, Senate Agriculture Committee Chairman Pat Roberts linked the state of U.S. trade to the farm bill, remarking trade presents more challenges to the farm bill. Speaking last week at a Senate Finance Committee hearing with U.S. Trade Representative Robert Lighthizer, Roberts simply said: “This is not a good situation.” Speculating that if Congress needs to add payments for farmers to reduce the impact of any trade retaliation, he says that would be another "dust-up" as lawmakers try to write a farm bill in the backdrop of a "severe budget situation," along with low farm income. Roberts, during the hearing, told Lighthizer that the top trade official's agenda must include "a focus on returning the United States to reliable supplier status." Roberts and the Agriculture Committee is actively working on crafting the next farm bill. During field hearings held regarding the farm bill, farmers testified about the need for continued strong export opportunities as well as business certainty from regulatory reform.  

Organic Groups Suing USDA over Livestock Rule

Four organic groups have filed a lawsuit against The U.S. Department of Agriculture, and Agriculture Secretary Sonny Perdue, regarding the organic livestock welfare rule. Led by the Center for Food Safety, the groups say the decision to withdraw the rule was “outrageous and unlawful,” similar to what USDA called the rule. In the March 13th decision, USDA claimed the regulations could not be issued because the agency lacked the authority to regulate practices such as animal space for livestock under the Organic label. The regulations were finalized in the final days of the Obama administration. The Groups say the rule would strengthen the minimum requirements for the care and well-being of animals on organic farms. Represented by CFS legal counsel, the plaintiffs are the Center for Food Safety, Center for Environmental Health, Cultivate Oregon, and the International Center for Technology Assessment.

USDA Wants Input on Statistics Gathering Programs

The Department of Agriculture is seeking feedback on the National Agricultural Statistics Service. Through the 2018 USDA Data Users’ meeting, USDA will seek comments and input on recent and pending changes in various data and information programs. NASS and partner agencies organize the annual meeting for USDA stakeholders. Other participating USDA agencies include the Agricultural Marketing Service, Economic Research Service, Farm Service Agency, Foreign Agricultural Service and the World Agricultural Outlook Board. The U.S. Census Bureau will also participate. Leaders from each agency will provide an overview of current issues and then take questions and comments. The 2018 meeting will be held from 1:00 p.m. to 5:30 p.m. Central Time on Tuesday, April 24th, 2018 at the University of Chicago, in Chicago, Illinois. Attendees can register online for free at www.usda.nass.gov. 

NACD APPLAUDS CONSERVATION MEASURES IN OMNIBUS BILL

WASHINGTON, D.C. – Today, Congress passed and President Donald Trump signed into law a Fiscal Year (FY) 2018 omnibus appropriations package that will improve conservation delivery across the United States.“NACD is encouraged by the strong support for conservation programs in the omnibus,” NACD President Brent Van Dyke said. “These provisions provide both the staff and financial assistance essential to conservationists, and we hope to see similar funding in FY 2019 appropriations this fall.”The omnibus includes strong funding levels for Conservation Operations at $874 million, including conservation technical assistance, and maintains full funding levels for farm bill conservation programs. Additionally, the System for Award Management (SAM) and Data Universal Numbering System (DUNS) requirements to participate in conservation programs were eliminated.“NACD has supported eliminating these requirements for years,” NACD CEO Jeremy Peters said. “Removing the burdensome task of SAM/DUNS reporting allows landowners and operators to prioritize conservation program participation without hindrance.”The omnibus maintains funding for the Environmental Protection Agency (EPA)’s 319 grants and provides continued financial support for the Watershed Operations and Watershed Rehabilitation programs. The package also includes $335 million for the USDA Forest Service State and Private Forestry programs, which is an increase from FY 2017’s levels, with $28 million dedicated to urban forestry efforts.“From rural to urban lands, conservation matters on every acre,” Peters said. “These increases in programmatic funding, as well as the permanent wildfire funding fix laid out in the bill, enable natural disaster mitigation on a variety of landscapes.”“Federal support for these programs is a significant win for landowners nationwide,” said Van Dyke. “There is still work to be done, but these funding levels provide conservationists with increased resources to deliver the best technical assistance possible.” 

BLM announces outcome-based grazing projects for 2018

Initiative provides grazing permit holders flexibility in the management of livestock
WASHINGTON – The Bureau of Land Management today announced 11 demonstration projects in six states for its outcome-based grazing authorizations initiative, which is designed to provide BLM managers and grazing permit holders greater flexibility in the management of permitted livestock.  This initiative emphasizes the Trump Administration’s goal of promoting shared conservation stewardship of public lands while supporting uses such as livestock grazing.The flexibility allowed under the outcome-based grazing authorizations, which were first announced in September 2017, will demonstrate management practices that BLM managers and livestock operators can use to respond to changing, on-the-ground conditions such as wildfires, high moisture years, or drought.  This will better ensure healthy rangelands, high-quality wildlife habitat, and economically sustainable ranching operations.“The demonstration projects will play an important part in establishing outcome-based grazing authorizations as a standard practice,” said Brian Steed, Deputy Director of Programs and Policy.  “We will consider the success of the demonstration projects as we develop guidance for future authorizations.” Outcome-based grazing emphasizes conservation performance, ecological, economic and social outcomes and cooperative management of public lands.  This initiative will help demonstrate that permitted livestock grazing on public lands can operate under a less rigid framework than is commonly used in order to better reach agreed upon habitat and vegetation goals. The demonstration projects will provide BLM, working in partnership with ranchers and other partners, with an opportunity to enhance its guidance and best management practices to use when issuing grazing permits.  The projects will also be used as models for developing cooperative monitoring plans and land health evaluations that will be implemented in future authorizations under this program.    The permit holders chosen to serve as demonstration projects are:Little Snake Land Company in Craig, Colorado (Little Snake Field Office)Deep Creek Ranch LLC in Burley, Idaho (Burley Field Office)Joe King and Sons, Inc. and Gran Prairie Limited Partnership in Lewistown, Montana
(Lewistown Field Office)Winecup-Gamble Ranch in Elko, Nevada (Wells Field Office)Elko Land and Livestock Company in Elko, Nevada (Tuscarora Field Office)Willow Ranch in Battle Mountain, Nevada (Mt. Lewis Field Office)Smith Creek Ranch, Carson City, Nevada (Stillwater Field Office)John Uhalde and Company in Ely, Nevada (Bristlecone Field Office)Roaring Springs Ranch in Burns, Oregon (Andrews/Steens Field Office)Fitzgerald Ranches in Lakeview, Oregon (Lakeview Field Office)PH Livestock in Rawlins, Wyoming (Rawlins Field Office)The BLM looks forward to working with ranchers and other partners on the selected projects to develop innovative, flexible, and forward looking best management practices that can be applied more widely on the public lands.For more information on outcome-based grazing authorizations, please visit http://www.blm.gov/programs/natural-resources/rangelands-and-grazing/livestock-grazing. 

MONTANA COWBOY HALL OF FAME SEEKS NOMINATIONS FOR CLASS OF 2018

The Montana Cowboy Hall of Fame (MCHF) is seeking nominations for the 2018 Hall of Fame induction round. Every year, the MCHF honors living and historical figures that have made notable contributions to Montana’s western heritage.“We invite people from across Montana to identify those in their communities who are most deserving of inclusion in the hall of fame,” said Bill Galt, board president. “Nominations are open and welcome from the public at large.”2018 marks the eleventh year of honoring inductees. The Board of Trustees will cast votes to select inductees from each of the 12 Trustee Districts based on nominations from the public.Nominees can be men, women, ranches, stage coach lines, animals, hotels, etc.—anyone or anything that has made a notable contribution to our Montana Western heritage. A full listing of inductees from 2011-2017, the 2018 Nomination Instructions, and more about the Hall of Fame induction process can be found online at http://www.montanacowboyfame.org.If you would like to make a nomination, you must contact the MCHF at Christy@montanacowboyfame.org or by calling (406) 653-3800 prior to the submission deadline to express your intent to nominate. Nominations must include a cover page, a two-page biography, and a high-quality photograph. All nomination documents must be in electronic format and emailed by May 31, 2018.The 2018 Class of the Montana Cowboy Hall of Fame will be announced by press release by September 1, 2018. Winning inductees will be honored at the 2019 Montana Cowboy Hall of Fame Induction Ceremony & Western Heritage Gathering. 

Trump: China Tariffs Will Total $50 Billion

President Donald Trump announced an estimated $50 billion in tariffs against Chinese imports today. Bloomberg says it’s a retaliatory move against intellectual property violations. The move will take effect on more than 100 different types of Chinese products. The overall value of the tariffs was based on economic estimates of the damage caused by those intellectual property violations. Last year, Bloomberg says Trump instructed U.S. Trade Representative Robert Lighthizer to look into claims that China steals U.S. intellectual property and forces American companies to transfer their technical know-how to Chinese firms as a condition for doing business in the country. Lighthizer confirmed in testimony before the House Ways and Means Committee on Wednesday that the administration is considering both tariffs and curbs on Chinese investment. U.S. companies like Walmart and Amazon have warned the White House that tariffs on Chinese goods will hit consumers with higher prices. The Wall Street Journal says China plans on hitting back against Trump tariffs by targeting goods from states and industries that tend to employ Trump supporters. Ways and Means Chair Kevin Brady cautioned Lighthizer and the administration about “indiscriminate” tariffs against China, noting that “it’s not about backing down, it’s about hitting the target.”

More Tariff Exemptions for U.S. Trading Partners

During testimony before the Senate Finance Committee, U.S. Trade Representative Robert Lighthizer confirmed that the European Union, Australia, Argentina, Brazil, and South Korea will be exempted from tariffs on steel and aluminum. A Politico report says Lighthizer told the committee that, “the president has decided to pause the imposition of the tariffs with respect to those countries.” The levies are set to take effect on Friday. Canada and Mexico had already been exempted from the tariffs. The president agreed that “based on a certain set of criteria, that some countries should get out” and those are the countries that the U.S. has been negotiating with. Lighthizer confirmed the exemptions after ranking member Ron Wyden asked the administration’s trade boss to provide some clarity on the exemption process. “Everyone here wants to be part of the consultation process, which we haven’t had much of, recently,” Wyden said. “Which countries – because it’s going to happen tomorrow – won’t have these steel and aluminum tariffs applied to them?” Lighthizer responded with, “It’s the list I just gave.” The U.S. Trade Representative and the U.S. Commerce Department have been in talks with several countries about exempting them from the steel and aluminum tariffs.

Appropriations Bill Agreed Upon by Congress, Contains Section 199A “Fix”

The Hagstrom Report says congressional leaders have agreed on an omnibus appropriations bill to fund the government through September 30. It passed a House vote today, 256-167, and is expected to pass in the Senate before the weekend. There may still need to be a short-term continuing resolution if any senators object to the bill. The bill does contain a fix to Section 199A of the tax law that currently gives farmers an incentive to sell to cooperatives rather than privately owned companies. The National Grain and Feed Association was happy with what they saw. NGFA President and CEO Randy Gordon says there is a huge sense of urgency in getting this issue fixed as producers continue to make marketing decisions, especially with the recent rally in corn and soybean prices. Ag Secretary Sonny Perdue says the spending plan contains a number of USDA priorities. “Fixing the so-called ‘grain glitch’ problem is simply an issue of fairness and we should not be picking winners and losers through the federal tax code by favoring one side over another,” Perdue says.

Omnibus Spending Bill Also Contains Livestock “Fixes”

The U.S. Cattlemen’s Association was pleased to see that the omnibus appropriations spending bill released on Wednesday night has what it called “two commonsense solutions to regulatory overreach in the Fiscal Year 2018.” The spending bill includes a one-year delay of the Electronic Logging Devices mandate for livestock haulers. It also excludes livestock producers from the reporting requirements of the Environmental Protection Agency’s livestock emissions reporting mandate. Executive Vice President, Kelly Fogarty, says both of the victories in the bill offer commonsense solutions to over-regulation. “The USCA Transportation Committee will use the one-year delay to continue its work with the Federal Motor Carrier Safety Administration and Congress to secure needed flexibility for livestock haulers in the restrictive Hours-of-Service rules,” says Fogarty. “USCA worked hard to avoid yet another EPA overreach on the industry and we will continue to work with the administration and Congress to secure successful outcomes on both of these issues.” USCA says they thank members of Congress for acknowledging and addressing regulatory overreach and its potential negative impact on the livestock industry.

Farmers for Free Trade: Tariffs Make American Farmers a Target

Brian Kuehl, Executive Director of Farmers for Free Trade, says the Section 301 tariff announcement against China is bad news for American agriculture. The group says these tariffs will put a target on the backs of American farmers. Kuehl says, “In fact, in testimony this week, U.S. Trade Representative Robert Lighthizer says that ‘farmers get the short end of the stick’ when we raise tariffs like these on other countries. Given that China is the second-largest export market for American farmers and ranchers, the pain from retaliation could be significant.” The group points out that state-run Chinese media has already indicated that American soy exports could be targeted. That would mean the nearly $14 billion in annual soy exports from American farmers could face an immediate tax. Other reports from China have said that American pork and sorghum exports could also be in the bullseye. “Nobody wins in a trade war,” Kuehl adds, “but it’s also true that some sectors of the economy lose more than others. Over the years, American agriculture has consistently paid the price for protectionism.” With farm incomes declining, the last thing American farmers and rural communities can afford is a tax on the export market they rely on.

NBB Disappointed with No New Biodiesel Tax Credit

The omnibus appropriations bill that’s already won approval in the House of Representatives doesn’t reinstitute the biodiesel tax credit. Kurt Kovarik, National Biodiesel Board VP of Federal Affairs, says his organization is disappointed that Congress once again hasn’t provided pro-growth tax certainty for a domestic energy industry that has broad bipartisan support. “The lack of urgency by Congress to extend this expired tax credit continues to frustrate the producers, blenders, and marketers of biodiesel,” says Kovarik, “and we will work to educate members of the economic and environmental benefits of increased use of biodiesel, so that Congress is poised to drive investments in this American energy industry. “Last February, Congress passed a retroactive biodiesel tax credit that applied to 2017 only. Producers continue to operate in 2018 without a tax credit, which is forcing biodiesel producers nationwide to carry the risk of the uncertainty caused by the lack of the tax credit. For some small biodiesel producers, that can be the difference between keeping the lights on or shuttering down.  

Wheat Grower Organizations: Enforcing Trade Rules is Best Done Within the Rules

ARLINGTON, Virginia — While U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) understand and support the need to enforce international trade rules, we are very concerned about the implications of the Trump Administration’s decision today to impose more than $60 billion in tariffs on Chinese goods under Section 301 of the Trade Act of 1974. 

We agree that unfair Chinese government policies create unnecessary trade distortions that hurt U.S. farmers and other industries. Our organizations urged the U.S. government to challenge China’s domestic price support and tariff rate quota compliance that led to cases disputing these policies within the World Trade Organization (WTO). Such cases served notice to China and our trading partners that the United States would lead a legitimate effort to enforce existing trade rules — by following those rules. We believe that it is in the nation’s best interests, and the interests of the wheat farmers we represent, to challenge trade distorting policies to the maximum extent possible within WTO rules. 

It is unfortunate that the well-intentioned decision to challenge other Chinese trade policies has been implemented in a way that violates the rules outlined in Article II of the GATT Agreement. Recent actions including withdrawal from the Trans-Pacific Partnership and implementing steel and aluminum tariffs on the basis of national security have already undermined U.S. leadership in international trade. Now this action further erodes historical support for rules-based trade policies, even though China will likely bring a case against the tariffs within the WTO dispute settlement process. 

In addition, USW and NAWG fear that applying unilateral tariffs could invite retaliation that, as recent history shows, would be aimed at U.S. agricultural products. This could very well include China throwing up road blocks to U.S. soybeans, wheat, corn and other commodity imports, which would cut into already unsustainable farm incomes. 

We welcome the administration’s strong support for enforcing trade rules. We only wish it would have challenged China’s state-driven policies in ways that complied with and strengthened existing trade rules.

US Will Shield List Of Allies From Tariffs

(Bloomberg) -- The U.S. will shield a list of allies including Europe, Australia, South Korea, Argentina and Brazil from steel and aluminum tariffs that take effect on Friday, according to U.S. Trade Representative Robert Lighthizer.President Donald Trump has decided to “pause the imposition of the tariffs with respect to those countries,” Lighthizer told the Senate Finance Committee on Thursday. “We have the two Nafta countries. We have Europe, Australia, we have Argentina, we have Brazil, and obviously Korea.”  The exemptions would amount to at least half of U.S. imports in 2017. It was unclear from Lighthizer’s remarks to the committee whether those nations wouldn’t have to pay the tariffs while negotiating a solution or if they’re getting more permanent relief. Lighthizer said on Wednesday that the U.S. wanted to wrap up the discussion over which countries will get firm exemptions by the end of April.Trump announced earlier this month he was imposing a 25 percent tariff on imported steel and 10 percent on aluminum but exempted Canada and Mexico as long as they agreed to an updated North American Free Trade Agreement. The president also left the door open for allies to negotiate their own exemptions, sparking a furious lobbying effort by trading partners like the European Union, which is threatening retaliation if it’s hit by the duties.The EU believes it’s on track to be exempted following two days of talks between European Trade chief Cecilia Malmstrom and Trump administration officials in Washington, four EU officials said Thursday on the condition of anonymity.“Cecilia Malmstrom had a good, very fruitful visit to Washington,” commission Vice President Jyrki Katainen said in a Bloomberg Television interview on Thursday. “We have good opportunities now to solve the issue and stabilize, or calm down, the problem.”The EU has been seeking a waiver while warning that a failure to gain one would lead to a tit-for-tat response on 2.8 billion euros ($3.5 billion) of imports of U.S. goods including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey.Trump made the case for restricting steel and aluminum imports to protect national security. The administration says U.S. manufacturing has been decimated by the flood of imports into the U.S. at cut-rate prices because of Chinese overcapacity. The president had said a global tariff was needed to address China’s shipments of the metals that pass through another country en route to the U.S.Companies are also seeking production exemptions in a separate process overseen by Commerce Secretary Wilbur Ross. The secretary told the House Ways and Means Committee on Thursday that his department is already processing up to 200 queries for exclusions and it’s trying to “minimize” the impact of the tariffs for downstream U.S. metal users. 

President Trump Signs Memorandum On Tariffs

President Donald Trump on Thursday signed a memorandum directing U.S. Trade Representative Robert Lighthizer to place tariffs on about $60 billion of Chinese goods, prompting China to threaten reciprocal duties and a meat trade group to warn of harmful consequences for American agriculture.Media reports said China’s Commerce Ministry released a list of more than 120 U.S. products targeted for tariffs if the two countries fail to resolve their trade differences. The Washington Post said a 25 percent tariff could be imposed on items including pork and aluminum and a 15 percent levy placed on other goods such as wine and fresh fruit. In a fact sheet, the U.S. trade representative’s office (USTR) said it will propose 25 percent duties on a range of Chinese imports in response to China’s unfair acquisition of U.S. technology. Products subject to the tariffs will include aerospace, information and communication technology, and machinery, with a proposed list to be announced in the next several days.North American Meat Institute (NAMI) CEO Barry Carpenter, in a statement, said his group is concerned the tariffs will undermine the industry’s access to the Chinese market, noting China was the third largest importer of U.S. pork and fourth largest importer of U.S. beef by value in 2017. Moreover, 60 percent of U.S. hides and skins exports, which total $2 billion annually, are sent to China, he noted.“It’s clear the future growth of the U.S. agricultural economy, and meat and poultry sector, depends upon a robust trade relationship with China. This restrictive trade policy will not only undercut U.S. agricultural exports and economic growth, but will also cause undue harm to America’s agricultural communities, which will likely bear the brunt of China’s retaliatory measures,” Carpenter said.