Welcome

Welcome

Thursday, May 31, 2018

Brazil Levies Deforestation Fines on Grain Firms

(Dow Jones) -- Brazil's environmental agency announces $29M worth of fines to major grain trading companies, including international giants Cargill and Bunge, for transgressing the country's deforestation policy by purchasing soybeans from protected areas. The Brazilian body, Ibama, used "geospatial data" to confirm the infractions, mainly in Brazil's Cerrado region. A Bunge spokeswoman says the company disputes the charges and is formally contesting them. A Cargill spokeswoman says the company hasn't received official word from Ibama on the matter, and is investigating. Deforestation for decades has been blamed on farmers' push to convert millions of Brazilian land over to crops, and international grain companies have pledged to help curb the practice.

China Could Cut US Trade Surplus by $100B

(Dow Jones) -- Trump initially said he wanted the US/China trade gap to shrink by $100 billion. JPMorgan says that's plausible if China imports more American planes, automobiles, semiconductors and commodity products. But the upgraded $200 billion target? Very challenging, if not impossible, as constraints exist on both sides, the investment bank adds.

China and U.S. Discuss Farm Goods Quarantine Issues

(Dow Jones) -- China and the U.S. held talks on quarantine inspections of various agricultural products imported into both countries, a signal of easing trade tensions between the two countries.Officials from both sides discussed quarantine issues regarding an array of U.S. exports to China, including poultry meat, rice, feed additives, as well as Chinese exports of cooked poultry products, citrus fruits and dates to the U.S., according to a statement on the customs authority's website Tuesday.

New Zealand to Kill 150,000 Cows to End Bacterial Disease

(AP) -- New Zealand plans to slaughter about 150,000 cows as it tries to eradicate a strain of disease-causing bacteria from the national herd.Politicians and industry leaders announced the ambitious plan on Monday. They say it will cost hundreds of millions of dollars, and, if successful, would be the first time an infected country has eliminated Mycoplasma bovis.Farming is vital to the economy in New Zealand, whose isolation has helped protect it from some diseases which affect herds elsewhere.Last July, Mycoplasma bovis was found in the country for the first time. Found in Europe and the U.S., the bacteria can cause cows to develop mastitis, pneumonia, arthritis and other diseases. They are not considered a threat to food safety, but do cause production losses.

Ethanol Coalition Sues EPA Over Secretive RFS Waivers

An ethanol coalition has filed suit against the Environmental Protection Agency in the U.S. Court of Appeals for the Tenth Circuit. The Renewable Fuels Association, the American Coalition for Ethanol, National Corn Growers, and the National Farmers Union are suing the EPA to challenge several waivers to the Renewable Fuels Standard, given out in secret to several profitable refineries. The groups are challenging three specific decisions that were made under clandestine conditions. The EPA gave exemptions to refineries in Oklahoma, Wyoming, and Utah. The companies that own the three refineries have estimated in financial disclosures that the exemptions saved them roughly $170 million in costs. The petitioners aren’t challenging the EPA’s authority to grant the waivers. They’re challenging these three decisions as specific abuses of the EPA’s authority. Bob Dineen, CEO of the Renewable Fuels Association, says the EPA is trying to undermine the RFS under the cover of night. Brian Jennings, CEO of ACE, says the EPA left them no choice but to file suit. “They’re distorting the intent of the law by granting secret hardship waivers under the cover of night,” says Jennings. “We cannot sit by and allow the EPA to violate the RFS, which requires increasing the use of renewable fuels in the U.S.”

Producers Getting Whiplash from Trade Back-and-Forth

American producers are suffering from dizziness, thanks to the back-and-forth headlines regarding the U.S.-China trade dispute. Tuesday, the Trump Administration announced it was moving ahead with plans for protecting intellectual U.S. property. Politico says the administration will take steps to impose 25-percent tariffs on $50 billion worth of Chinese imports, plus, establish broad investment restrictions and pursue litigation with the World Trade Organization. But what’s real and what isn’t? Michelle Erickson-Jones, president of the Montana Grain Growers Association, says, “It’s so hard to tell what’s rhetoric and what’s real, though it would surprise me if we went forward with these tariffs.” The level of uncertainty caused by the U.S.-China conflict, as well as the North American Free Trade Agreement negotiations, is hard on commodity markets. It also jeopardizes relationships with overseas commodity buyers. Jones says countries are already looking for other buyers. As an example, she points out that Mexico recently purchased wheat from Argentina for the first time in modern history. In spite of the president’s recent tendency to back down on threats against China, they still have to be taken seriously because the country is such an important market for American farmers. Kevin Paap (pap), Minnesota Farm Bureau President, says “It’s an emotional issue for soybean growers. China is our safety net.” 

Trade Retaliation Already Hurting Pork Producers

The National Pork Producers called for a swift resolution to the U.S.-China trade dispute because pork producers are feeling the pain. Iowa State University Economist Dermot Hayes says U.S. pork farmers have lost $2.2 billion on an annualized basis. The losses are a direct result of the events leading up to and following China’s 25 percent punitive tariffs in retaliation for U.S. tariffs on aluminum and steel. Jim Heimerl (HI-merle), NPPC President, says U.S. pork has invested significant funds into ramping up pork production in order to take advantage of opportunities around the world, which include China and other markets throughout the Asia-Pacific region. NPPC applauds the president for making agriculture exports a cornerstone in the negotiations with China. “Since March first, when speculation about Chinese retaliation against U.S. pork first started,” Hayes says, “hog futures have dropped by $18 an animal. That translates to a $2.2 billion loss on an annualized basis.” Hayes adds that, while not all of the lost value can be attributed directly to the trade friction between China and the U.S., it certainly is the main factor. The market disruption that’s being caused by the trade uncertainty comes at a time when American pork production is expanding to record levels.

Brazil Trucker Strike Disrupting Ag Exports

The Brazilian trucker strike has officially disrupted supply and exports of farm products from one of the biggest ag exporting countries in the world. A Reuters report says Brazil is the top exporter of soybeans, sugar, coffee, and chickens. The strike over high fuel prices has brought Latin America’s largest economy to a complete stop. Roads are empty and major cities are short on food, gasoline, and medical supplies. However, the strike has also had devastating impacts on livestock. Tens of millions of chickens have been killed because feed supplies have failed. If they begin to starve, chickens will start eating each other, so meatpackers have had to cull their flocks quickly. Some 70 million chickens had died as of Monday. Poultry and pork processing association ABPA says the country has lost 120,000 tons of potential exports since the trucker strike began. Brazil is the world’s largest chicken exporter, supplying a third of all shipments around the world.

Humane Society of the U.S. Rating is Downgraded Again

An Ag Web Dot Com article says 2018 has been a rough year for the Humane Society of the United States. A third charity watchdog has downgraded HSUS. CharityWatch lowered the Humane Society of the U.S. to a D rating in its most recent rankings, thanks in part to its highly inefficient spending practices. The downgrade comes just a few months after HSUS CEO Wayne Pacelle resigned following sexual harassment allegations against him that prompted an uprising from HSUS staff and donors. Earlier this year, Charity Navigator downgraded HSUS, and the BBB Wise Giving Alliance revoked its accreditation of the Humane Society. CharityWatch says it made the decision after learning that 48 percent of the HSUS budget is spent on overhead costs. Humanewatch.org says, “The Humane Society cloaks millions of dollars in overhead as program costs.” Essentially, what HSUS is doing is counting fundraising material as educational costs. Back in February, Animal Charity Evaluators rescinded its HSUS recommendation because “ACE considers ethical leadership and a healthy work environment to be important components for an effective charity.”

Nation’s Number Two Milk Processor Continues to Close Plants

Dean Foods, the nation’s number-two milk producer behind Nestle, continues to shutter businesses in cost-cutting moves. Milk Business Dot Com says supply-and-demand economics appears to be the driving force behind the downsizing. U.S. milk production is continuing to climb as the demand for fluid milk wanes. That’s been hard on Dean’s bottom line as the company reported a year-over-year eight percent drop in gross profit during the fourth quarter of 2017, as well as a four percent drop in the first quarter of this year. Company share prices have dropped more than 50 percent in the last 12 months. The latest Dean Foods plants to close were in Pennsylvania and Massachusetts. Earlier this year, Dean also notified more than 100 producers that their milk contracts would be terminated on May 31. At the time of the announcement, Dean Foods cited a “surplus of raw milk at a time when the public is already consuming less fluid milk.” When the contract announcement was made, Dean Foods also acknowledged that more consolidation was on the way. 

Wednesday, May 30, 2018

DOJ Approves Bayer Purchase of Monsanto

The U.S. Department of Justice Tuesday approved Bayer Ag’s acquisition of Monsanto, with conditions. The Justice Department says Bayer must sell approximately $9 billion in businesses and assets to BASF. The Department says the proposed divestiture to BASF, which it calls an experienced chemical company with a substantial crop protection business, will fully resolve all horizontal and vertical competition concerns. As a result, the Department says “American farmers and consumers will continue to benefit from competition in this industry.” The Antitrust Division Tuesday filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction, while simultaneously filing a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns. Under the terms of the proposed settlement, Bayer must divest businesses that compete with Monsanto. Those include Bayer’s cotton, canola, soybean and vegetable seed businesses, as well as Bayer’s Liberty herbicide business, a key competitor of Monsanto’s well-known Roundup herbicide.

NAFTA Talks Continue, Time Running Short

Negotiations of the North American Free Trade Agreement continue this week in Washington, as all sides are trying to wrap up the talks quickly. Canada’s foreign minister Chrystia Freeland is in Washington this week, meeting with U.S. Trade Representative Robert Lighthizer and others, according to Bloomberg News. However, absent from the table is Mexico’s Economy Minister, who is attending other meetings in Paris. Time is running out for Mexico and Canada to continue to be exempt from U.S . steel and aluminum tariffs, which the “final exemption” according to the White House is set to expire this Friday. Also, Mexico’s election is set for July first, a hurdle in the talks negotiators have been trying to avoid. Mexico’s Economy Minister last week predicted there was a 40 percent chance all sides could reach an agreement before the election. The talks remain focused on the automotive sector, though other barriers remain for all sides to reach an agreement.

U.S. to Continue With Trade Action Against China

Despite a potential agreement on trade issues between the U.S. and China, the Trump administration will continue to pursue action against China. By mid-June, The U.S. is expected to release a list of $50 billion worth of Chinese goods that will be subject to a new 25 percent tariff, according to Reuters. The United States will also continue to pursue litigation against China at the World Trade Organization. China earlier this month agreed to purchase more U.S. agricultural products, and the U.S. said the two had reached a deal for mobile phone manufacturer ZTE to remain in business. However, with nothing finalized, it appears the U.S. will push forward with what it calls "enhanced export controls" related to technology. The previous announcements eased the scare of a trade war, but President Trump last week said any agreement between the two would need “a different structure,” prompting more trade uncertainty.*

Beef Supply Facing Mounting Market Pressures

A recent report from Rabobank shows dryness in the south is pointing towards tightening of beef supplies. The Rabobank Beef Quarterly report shows beef cow slaughter numbers are up ten percent through mid-April from a year ago, driven by ongoing dry pasture conditions, and the likelihood of forced herd liquidation during the coming grazing season, as reported by meat industry publication Meatingplace. Beef production and consumption are both increasing, adding some building pressure on the world’s major beef markets, along with the potential of a drought year in the United States. The limited grazing opportunities in the U.S. forced cattle into feedyards quicker, driving up the number of cattle on feed between September and February. Western Oklahoma remains in an extreme drought, according to the latest U.S. Drought Monitor, along with much of Western Texas classified in a severe drought.

USDA Will Not Recognize Third-Party Inspections Regarding Animal Welfare

The Department of Agriculture’s Animal and Plant Health Inspection Service, or APHIS, will not establish new criteria for recognizing third-party inspection and certification programs when determining the Agency’s own inspection frequency under the Animal Welfare Act. In December of last year, APHIS announced a series of public listening sessions as for leadership to gather information about the concept of third-party inspections from stakeholders, state partners and the public. However, APHIS says it found the vast majority of the comments were not in favor of establishing new criteria for recognizing third-party inspection and certification programs. USDA says stakeholders on all sides of the issue expressed concern about APHIS’ ability to maintain responsibility for inspections and Animal Welfare Act compliance should third-party inspections be taken into account when determining APHIS inspection frequencies.

Reminder: MPP Enrollment Deadline Looming

Dairy farmers have until Friday to enroll in the retooled dairy Margin Protection Program. The Department of Agriculture set a June first deadline for enrollment in the program that was revised by Congress earlier this year. USDA says many producers will see payments in early June, depending on the coverage they elect. The program protects dairy producers by paying them based on the difference between the national all-milk price and the national average feed cost. The 2018 Bipartisan Budget Act made several changes to the safety net program to provide better protections for dairy producers from shifting milk and feed prices. Producers already enrolled in the program must still enroll in the new program, if they have yet to do so already. The new program is retroactive for all of 2018. For more information and enrollment, farmers are encouraged to contact their local Farm Service Agency office. 

Tuesday, May 29, 2018

Changes Coming for H-2A, E-Verify

The Trump administration is working on a proposed rule to streamline the H-2A farmworker visa program while providing new incentives for agribusiness and farmers to use the E-Verify system to check the legal status of employees.USDA and the Departments of Labor, State and Homeland Security are working together on the topic. In a conference call with agricultural groups, officials said the goal was to finalize the changes in time for the 2020 growing season, with USDA the center spot for farms to apply for H-2A workers.The Western Growers Association said they backed changes to the H-2A program, they were concerned about E-Verify becoming part of the plan. "Changes to H-2A should be made to improve the system for the use of all, and any implication that necessary reforms would be limited to those that use E-Verify is concerning," the group said, urging Congress to take action on immigration legislation.In Fiscal Year (FY) 2017, more than 200,000 workers came into the U.S. via the H-2A program.

Washington Insider: The ZTE Deal

The Trump administration told lawmakers late last week it had reached a deal that would keep the Chinese telecom firm ZTE alive, a move that could clear the way for further trade talks with China, the New York Times said. It also thinks the move could “provoke anger in Congress.”Under the agreement brokered by the Commerce Department, ZTE would pay a substantial fine, hire American compliance officers to be placed at the firm and make changes to its current management team.In return, the Commerce Department would lift a so-called denial order that is preventing the company from buying American products, the Times said.President Trump confirmed the news late Friday evening. The deal would allow ZTE to once again begin doing business with American companies, after it was recently banned from buying American technology components for seven years as punishment for violating U.S. sanctions against Iran and North Korea, a penalty that industry analysts say threatened to put the company out of business within weeks.The collapse of ZTE would be an embarrassing outcome for China, and the company’s fate has become a hurdle in trade negotiations between the two countries. President Trump directed the Commerce Department to re-examine ZTE’s penalty based on a personal request from President Xi Jinping of China. This was reported to have set off a fierce pushback from some of Trump’s national security advisers, as well as lawmakers from both parties.Trump, however, has appeared unmoved by those concerns, the Times said. “The administration has been seeking to cut a deal on ZTE in exchange for trade concessions, including purchases of American agriculture and energy products.”Wilbur Ross, the commerce secretary, is scheduled to travel to China on June 2 to begin another round of the talks with top Chinese officials.Such a deal is likely to face fierce resistance on Capitol Hill, the Times said. Top lawmakers, including Mr. Schumer, D-N.Y., and Senator Marco Rubio, R-Fla., have urged the administration not to bend on ZTE, which they consider a law enforcement and national security issue.“ZTE presents a national security threat to the United States — and nothing in this reported deal addresses that fundamental fact,” Sen. Chris Van Hollen, D-Md. “If President Trump won’t put our security before Chinese jobs, Congress will act on a bipartisan basis to stop him.”On Thursday, the House passed a bill that would prevent the administration from easing restrictions on ZTE, and on Tuesday, the Senate Banking Committee approved a similar amendment that would prevent the president from modifying penalties on Chinese telecom companies that had violated American law in the past year.A group of 27 bipartisan senators also sent administration officials a letter last week warning them not to “compromise lawful U.S. enforcement actions against serial and premeditated violators of U.S. law, such as ZTE.”“Yes they have a deal in mind,” Rubio said in a tweet on Friday. “It is a great deal... for #ZTE & China. Now congress will need to act,” he added.The telecom company’s fate has consumed top administration officials, who have tried to defuse lawmakers’ concerns about a deal while responding to Trump’s entreaties to “get it done.” Last week, Ross and Steven Mnuchin, the secretary of treasury, briefed a group of Senate Republicans, including Mr. Rubio, John Cornyn, R-Texas, and Bob Corker, R-Tenn., on their plans for ZTE. Mr. Ross and Mnuchin sought to assure the lawmakers that they were planning on harsh penalties for ZTE, and appealed to Republicans to dampen their public criticism so a deal could be reached, a person briefed on the discussions said.Schumer argued on Friday that “simply a fine and changing board members would not protect America’s economic or national security, and would be a huge victory for President Xi, and a dramatic retreat by President Trump.”Defense officials have also been concerned about the Chinese telecom firm and its products, which they believe may be vulnerable to Chinese espionage or disruption. In early May, a spokesman for the Department of Defense said the Pentagon was stopping the sale of phones made by ZTE and a Chinese competitor, Huawei, in stores on American military bases around the world because of security concerns.The Chinese telecommunications firm has been on the brink of shutting down, following penalties imposed by the Commerce Department. It also agreed to a $1.19 billion fine and other penalties in March 2017, after it was found to have violated American sanctions. In April, the Commerce Department said it had had also made false statements relating to disciplining senior officials, and announced a seven-year ban on the company’s purchases of American products.That ban has crippled the Chinese firm and threatened to put tens of thousands of Chinese employees of the company out of work. The Chinese government had made clear that lifting ZTE’s penalty would be a condition for continuing with trade talks, and that if the penalty was not lifted, American companies operating in China might face further retaliation, people briefed on the discussions said.Trump administration officials have said repeatedly in the last week that ZTE is a law enforcement issue and that it is being considered independently from trade negotiations with China. But trade experts say that the administration’s actions and the president’s own statements indicate that ZTE’s fate has become inextricably linked to Trump’s goal of reaching a trade deal with China.So, we will see. China seems to be setting a high price on U.S. access to its markets, one that likely will affect trade interests in the United States — and the debate over U.S. farm policy, a fight producers should watch closely as it emerges, Washington Insider believes. 

Ross Heading to China June 2-4

U.S. Commerce Secretary Wilbur Ross will be in China June 2-4 for another round of talks amid trade tensions between the world’s two largest economies. Reuters says The trade dispute got a little more complicated this week when President Donald Trump announced a national security investigation into imports of cars and trucks. The probe could possibly result in tarfifs against China, as well as against key U.S. allies like Germany, Canada, Japan, and Mexico. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) says Ross will be looking to negotiate a framework that could turn into binding agreements between companies. The constructive comments from both the U.S. and China after the last round of talks eased fears of a trade war between the countries. However, President Trump said this week that any deal would need a “different structure,” fueling yet more uncertainty over negotiations. Trump threatened to impose $150 billion worth of tariffs on Chinese goods, fueling threats of equal retaliation from Beijing, including tariffs on large U.S. imports like soybeans.

Grassley-Conaway Subsidy Feud Escalates

Iowa Senator Chuck Grassley had some harsh words for House Ag Committee Chair Mike Conaway of Texas. The Grassley response came as Conaway said Grassley is wrong “every single time” when he complains about loopholes in the process by which USDA makes subsidy payments to farmers. Earlier this week, Grassley had said he would use the Senate farm bill to go after loopholes that non-farmers exploit to collect a lot of subsidy cash from the government. The House version of the farm bill doesn’t contain any payment limitations. House Freedom Caucus Chair Mark Meadows failed in his effort to promote an amendment that would rein in how much USDA is authorized to grant farmers coping with low commodity prices. In a three-tweet thread on Twitter, Grassley says Conaway should tell farmers why “I’m wrong for wanting to limit farm subsidies to FARMERS and not WALL ST Bankers living high on the hog. Farm subsidies meant as a safety net for farmers w/dirt under their nails.” Grassley encouraged the Freedom Caucus to vote against the House Farm Bill when it comes up again in June.

OTA: Higher Organic Standards Up to Industry

The USDA recently withdrew its organic livestock and checkoff rules, which signals that the agency likely won’t be setting any higher standards for the organic seal. Laura Batcha (BATCH-ah), CEO of the Organic Trade Association, says it’s up to the industry to take over from here. At the OTA annual policy conference, she said USDA has gone as far as it’s willing to go with this. “It’s a real watershed moment for the industry,” she says. “This is the first time we are seeing the market impacted.” The Hagstrom Report says Batcha was referring to a flattening in the growth of organic egg and dairy sales. The livestock and poultry requirements would have imposed outdoor living requirements for animals involved in dairy and egg production. That rule has been withdrawn by USDA. At the same time, organic egg companies have labeled their eggs as pasture-raised and consumers have responded. Batcha says the dairy market is a little more complicated. There’s been an oversupply of organic milk at the same time that consumers are also turning to more plant-based protein. Batcha says the OTA is continuing its lawsuit against USDA for withdrawing the livestock and poultry rule.

Wine is Newest Entry into Canada-U.S. Trade Challenges

Ag Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer announced that the Trump Administration has requested the World Trade Organization establish a dispute settlement panel. This time, the U.S. wants the panel to examine unfair rules governing the sale of wine in grocery stores in British Columbia. The USTR Office is challenging BC regulations that discriminate against U.S. and other imported wine by allowing only BC-produced wines to be displayed and sold on regular store shelves. Perdue says, “We just want customers in British Columbia to have the opportunity to buy our great American wine. The practice of discriminating against U.S. wine is unfair and cannot be tolerated any longer. Our wine producers rely on export markets and deserve fair treatment from our neighbors to the north.” Lighthizer adds that Canada is an important market for U.S. winemakers, saying that “B.C. and other Canadian provinces need to play by the rules. The Trump Administration will continue to hold our trading partners accountable by vigorously enforcing U.S. rights under our trade agreements and by promoting fair and reciprocal trade through all available tools.” The B.C. regulations exclude all imported wine from being displayed on grocery store shelves.

Brazil Truck Drivers Quit Working Because of High Diesel Prices

Brazilian truck drivers were protesting high diesel prices for a fourth day this week on Thursday. The truckers don’t plan to quit with blockades until measures to reduce fuel taxes are enshrined in the official gazette. Protests have been crippling highways across the nation. Brazil’s lower house of Congress voted to reduce taxes on diesel. The Senate has yet to vote on tax cuts that truckers say are needed before they’ll end the protests that threaten grain exports, industrial output, and even fuel supply at airports and gasoline stations. The state-run oil company announced a temporary ten-percent diesel price cut at the refinery. However, the head of a trucker’s group says that move isn’t sufficient. The truckers’ group, which is known as ABCAM, says the move isn’t sufficient because the cuts only last 15 days. After that, the company returns to setting domestic prices based on international oil prices. Even if the price cuts truckers are looking for get passed, it will still likely take several days to normalize cargo deliveries in the country when demonstrations come to an end. As of Friday, a Bloomberg report says the largest port in Brazil is running out of soybeans.

Rural Mainstreet Index Chief Eyeing Two Economic Red Flags

The Rural Mainstreet Index has been steadily climbing over the last four months, signaling improving conditions in farm country. However, the man behind the RMI, Ernie Goss from Creighton University, says he has his eyes on two issues; trade and interest rates. A Farm Journal report says Goss credits exports as one of the biggest reasons for improving economic conditions, in spite of trade “saber rattling.” Because of the rattling sabers, Goss says he’s very concerned about the future of trade going forward. Goss says, “What about trade with China? What about trade with Japan?” He tells Chip Flory of Agri-Talk that he’s very concerned about trade with Asia as well as the North American Free Trade Agreement. “NAFTA is very important to us,” he says, “but now we have a NAFTA deal that may not even be sealed until the next session of Congress.” The other red flag he’s keeping an eye on is interest rates. The Federal Reserve recently indicated that an interest rate hike could possibly happen during the June meeting. 

The U.S. cattle on feed inventory on May was 11.6 million head, a 5 percent increase from the year-earlier tally

The U.S. cattle on feed inventory on May was 11.6 million head, a 5 percent increase from the year-earlier tally, USDA said in a report Friday.The second-highest May 1 inventory taken since the USDA report began in 1996 was right in line with what analysts expected.Placements in feedlots during April totaled 1.70 million head, 8 percent below in 2017. Analysts predicted a 9.4 percent decline based on higher placements last fall and earlier in the year due to poor pasture and winter wheat conditions.Net placements were 1.63 million head. During April, placements of cattle and calves weighing less than 600 pounds were 320,000 head,600-699 pounds were 230,000 head, 700-799 pounds were 415,000 head,800-899 pounds were 445,000 head, 900-999 pounds were 205,000 head, and 1,000 pounds and greater were 80,000 head.Daily Livestock Report analysts note that a drop in placements in March and April will have little impact on marketings in the summer but will impact availability by fall and early winter.Marketings of fed cattle during April totaled 1.80 million head, 6 percent above 2017 and right in line with analysts’ expectations. 

Montana Farm Bureau Summer Conference slated for Fairmont Hot Springs

The theme Legendary Leadership serves as the cornerstone for speakers and workshops during Montana Farm Bureau Federation Summer Conference June 12-14 in Fairmont Hot Springs. The Summer Conference is a time when advisory committees meet to discuss current agricultural issues and surface ideas for policy development.Leadership speakers for the conference include Angela Hofmann, Farmers for Free Trade, who kicks off Wednesday morning’s program with the latest news on trade concerns affecting Montana farmers and ranchers. William Perry Pendley of Mountain States Legal Foundation will discuss continuing challenges to private property rights.Wednesday’s informational sessions cover topics Leadership/Advocacy; Issues; and Industry. The leadership session will address working with the media; Issues will include updates on the farm bill as well as transportation including Hours of Service and Electronic Logging Devices; and Industry will examine Montana’s rural economy and demographics. Another informational session highlights Extension updates on the Montana Fire Information Directory, water quality testing and the Soil Moisture Network and tools.Commodity Advisory Committee meetings will be held during the afternoon and Wednesday evening is the Montana Farm Bureau Foundation Fundraiser, “Spring Thaw.”Thursday’s interesting tour covers Butte’s diverse past and present including a visit to the toxic Berkeley Pit and the fascinating World Museum of Mining Museum, with lunch at Headframe Spirits, a local micro-distillery. The tour wraps up with a detailed look at the Silver Bow County restoration/weed project. Members not participating in the tour will enjoy competing in the MFB Foundation Golf Scramble.For more information visit www.mfbf.org or call 406-587-3153.

TESTER WORKS ACROSS THE AISLE TO STRENGTHEN MONTANA’S #1 INDUSTRY, PROTECT CLEAN WATER

U.S. Senator Jon Tester today worked across the aisle to strengthen Montana’s #1 industry and protect clean water for rural communities.Tester used his position as a senior member of the Senate Appropriations Committee to include funding for important Montana initiatives in two recent bipartisan laws.  During a committee meeting, Tester voted in favor of both the Senate Agriculture Appropriations Bill and the Senate Energy and Water Appropriations Bill, sending them to the Senate floor for a final vote.“Both of these priorities reflect the infrastructure, agriculture, and business needs of Montana,” Tester said.  “When we invest in our farmers and our infrastructure, we see big returns to Montana’s economy.  This is further proof that when Republicans and Democrats work together, good things get done.” The Senate Agriculture Appropriations Bill contains the following Montana provisions:·         $3.7 million to keep the Fort Keogh Research Lab in Miles City from closing.·         $5.6 million for the Northern Plains Research Lab in Sidney to continue its Wheat and Barley Scab Initiative.·         $1.5 billion to keep Farm Service Agency open in farming and ranching communities.·         $558.1 million for the USDA Rural Development Water and Wastewater Disposal loan and grant program.·         $127.2 million for Wildlife Services to help manage and compensate producers for conflicts between natural predators and livestock.·         $243.7 million to support State Agricultural Experiment Stations that do agricultural research.·         $300 million for Smith-Level and Cooperative Extension, which connects land-grant institution educations and local agriculture professionals to provide expertise to farmers and consumers.·         $425 million for a broadband pilot program aimed at improving high-speed internet services to rural America.Tester also included important report language in the Agriculture Appropriations Bill urging the U.S. Agriculture Secretary to work with the Canadian government to resolve the unfair wheat grading practices in Canada that unfairly target Montana grain producers, as well as report language pushing the Appropriations Committee to invest more resources to expand access to high-speed internet in rural areas. The Senate Energy and Water Appropriations Bill contains the following Montana provisions:·         $10 million for the Blackfeet Water Compact.·         $12 million for the Crow Water Compact.·         $4.7 million for the Fort Peck and Dry Prairie Rural Water Project.·         $3.9 million for the Rocky Boy’s and Northcentral Montana Rural Water Project.·         $6 million for watercraft inspection stations in the Columbia River Basin.·         $4.8 million for the Missouri River Recovery Program.·         $1.9 million for the Milk River Project, including St. Mary’s Diversion Dam.·         $2.6 million for the Libby Dam.As a member of the Senate Appropriations Committee, Tester is responsible for writing the 12 government bills that fund the federal government. 

Friday, May 25, 2018

US Presses China on Imports Of Ag Goods

President Trump is pushing China to boost its imports of U.S. ag products by $25 billion, a dramatic increase from the current import tally of around $20 billion.USDA Secretary Sonny Perdue said the two countries would need several years to ramp up trade to that level. USDA has been working on a list of potential ag products that China could purchase, with input from several U.S. ag industry officials who were asked about the topic.Commerce Secretary Wilbur Ross will bring the shopping list to China when he leads a delegation there to resume trade talks.USDA’s Foreign Agricultural Service has been “intimately involved” with U.S. trade negotiators and will be included in a delegation headed to China led by Ross, Perdue told reporters. Perdue added that he’d like to see a wider variety of ag exports sent to China, such as rice, corn and poultry. “There's several commodities in that basket that we're capable of selling a lot more to China,” he said.Another area being targeted by USDA in talks is streamlining biotechnology approvals.“We’re also looking at non-tariff measures regarding some of the policies and protocols that restrict U.S. products of going in to China. That will be part of the technical discussions as well," Perdue said. Of particular interest are U.S. foods grown using biotechnology, such as those utilizing genetically modified organisms (GMOs).

Commerce Dept. Launches Section 232 Investigation on Automobile Imports

An investigation of whether imports of autos in the U.S. present a national security threat has been initiated by the U.S. Commerce Department, setting up the potential for duties of 25% to be imposed on such imports."There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry," Commerce Secretary Wilbur Ross said in a statement. "The Department of Commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security."Imports of passenger vehicles have grown from 32% of cars sold in the United States to 48% over the past 20 years, Commerce said, while from 1990 to 2017, employment in motor vehicle production declined by 22%, even though Americans are continuing to purchase automobiles at record levels. The investigation under Section 232, the same provision used relative to steel and aluminum imports, will focus on whether imports autos and auto parts potentially reduce research, development and jobs for skilled workers in connected vehicle systems, autonomous vehicles, fuel cells, electric motors and storage, advanced manufacturing processes, and other cutting-edge technologies, Commerce said.Commerce Secretary Ross sent a letter to Secretary of Defense James Mattis informing him of the investigation.Some observers say Trump’s call is merely a tactic to goad Canada and Mexico into accepting an overhaul of the North American Free Trade Agreement (NAFTA 2.0).And Senate Majority Leader Mitch McConnell, R-Ky., expressed concern that the potential duties could have on U.S. agriculture.

Washington Insider: Farm Bill Complications Continue

It appears that the House Agriculture Committee is still determined to pass its farm bill in its current form, without Democratic support, Bloomberg is reporting. To do that, committee chair Mike Conaway, Texas will need Freedom Caucus votes but he still lacks a “pledge of support” from that quarter yet, Bloomberg says.Mark Meadows, R-N.C., chairman of the conservative House Freedom Caucus, told reporters last week that he can’t promise his members will provide the necessary farm bill votes—even if they succeed in forcing a separate vote on unrelated immigration legislation. “We haven’t guaranteed anything,” said Meadows. “We’re still negotiating on immigration.”The farm bill was defeated 198-213 after 30 Republicans joined all Democrats in opposition. The House conservatives sought to use their votes against the farm bill as leverage to press for action on an unrelated immigration bill, while Democrats objected to provisions in the farm bill that would set new work requirements for food stamp recipients.“I’m hopeful that whoever leadership is negotiating with will commit to a certain number of yes votes,” House Ag Committee Chairman Mike Conaway, R-Texas, told Bloomberg May 23.The House deadline to vote on a motion to reconsider the farm bill was extended to June 22 by language attached to the rule governing floor consideration of three bills on the House floor this week.House Majority Leader Kevin McCarthy, R-Calif., has offered the Freedom Caucus a vote on Judiciary Chairman Bob Goodlatte‘s R-Va., immigration bill — a measure that would provide temporary and renewable status to undocumented immigrants who were brought to the U.S. as children. The immigrants, known as “Dreamers,” would not get a path to citizenship.“I’m 100 percent confident that we will have some kind of a farm bill by September whether it’s an extension of the existing policy or new policy we will have that in place,” said Meadows. So far, authorizers and leadership are not conceding that an extension might be needed.The vote on a motion to reconsider doesn’t allow Conaway to make any changes to his bill. If he did, he would have to introduce the measure all over again and return to the House Rules Committee.“I don’t have any more things to change,” Conaway told reporters. “We’re going to pass [our bill].”The House bill would reauthorize various commodity, trade, rural development, agricultural research, and food and nutrition programs. Under the current farm law, program authorizations will expire Sept. 30 or at the end of the applicable crop year.Democrats had opposed additional work and work-training requirements for SNAP recipients in the House bill. But following the original failure of the bill, committee ranking member Collin Peterson, D-Minn., signaled their willingness to reopen bipartisan talks, especially on the Supplemental Nutrition Assistance Program.Peterson told Bloomberg this week that he hasn’t heard from Conaway regarding any re-negotiation. “It’s not my place to call him, he’s in charge,” said Peterson. “It doesn’t surprise me, given what he’s done so far.”So, it is too early to estimate what all of this means. There is still a strong sense that a farm bill will pass, but the budget hawks’ opposition to the current Supplemental Nutrition Programs is quite strong, as is Democratic support for the program. In addition, the high level of uncertainty regarding ag export market access under ongoing trade negotiations likely will build-in even greater than usual support for farm safety net programs. Certainly, these are fights that producers should watch even more closely than usual as they proceed, Washington Insider believes. 

USDA-EPA Discuss Year-Round E15

U.S. Department of Agriculture and Environmental Protection Agency officials met today to discuss ways to increase ethanol usage and to address refiner concerns about volatility in the market for biofuel credits. An Agri-Pulse report says the meeting followed months of discussions at the White House on the issue. It also follows months of concerns over the way EPA Administrator Scott Pruitt is overseeing the program. The ethanol industry is pressing the EPA to finally move forward with issuing a vapor pressure waiver that will allow E15 to be sold all year. Growth Energy CEO Emily Skor says President Trump promised to protect the statutory targets under the RFS. “We support Secretary Perdue’s efforts to ensure the EPA upholds the commitment to rural families,” Skor says, “and there’s no reason to delay or attach unrelated gimmicks to benefit a few refinery owners.” The meeting comes as Marathon, the nation’s second-largest refining company, is seeking a waiver from the RFS blending requirements. Iowa Senator Chuck Grassley says the Marathon request shows that the “embarrassing loophole,” as he calls the RFS waiver authority, needs to be fixed.

Cattle Groups Applaud Introduction of Livestock Hauling Bill

The National Cattlemen’s Beef Association, as well as the U.S. Cattlemen’s Association, were both pleased with the introduction of the Transporting Livestock Across America Safely Act on Wednesday. The NCBA says the legislation will reform the Hours of Service Rules in a way that ensures animal welfare, highway safety, and the well-being of livestock haulers. NCBA President and California producer Kevin Kester says the current Hours of Service rules for livestock haulers present big challenges for the industry and can also jeopardize the health and well-being of livestock. “Hauling livestock is much different than hauling products like paper towels or bottles of water,” he says. “Live cattle can’t simply be left unattended in a trailer.” USCA Transportation Committee Chair Steve Hilker says they asked, and Congress answered, calling it a historic moment for livestock haulers. “They get needed flexibility in the restrictive Hours of Service rules,” Hilker says. “We commend the bipartisan group of Senators for working together with the industry for a common-sense solution.” The U.S. Cattlemen look forward to working with members of the House and Senate to get the Transporting Livestock Across America Safely Act across the finish line.

U.S. and Mexico Talking Cars in NAFTA 2.0 Discussions

Two sources familiar with the negotiations have told Bloomberg that the U.S. and Mexico are discussing automobiles in an attempt to break an impasse over auto-production rules in an updated North American Free Trade Agreement. The anonymous sources say officials are meeting to discuss Mexico’s automotive proposal. The auto issue has been a key sticking point during the nine months of negotiations between the U.S., Mexico, and Canada. The push is coming as the Trump Administration tries to get an agreement in time for the current session of Congress to approve the deal before the November midterm elections. If the U.S. can’t hit that deadline, negotiations will run into 2019. Trump said Wednesday that negotiating NAFTA is “very difficult, but autoworkers are going to be very happy with the results.” Mexico and the U.S. have disagreed over the U.S. proposal that 40 percent of a car’s value be made with high-wage labor. People familiar with the discussions say Mexico’s counteroffer is that 20 percent of a car’s value be made with high-wage labor.

USDA Heavily Involved in Trade Talks

The USDA’s Foreign Agricultural Service has been “intimately involved” with U.S. trade negotiators and will be included in an upcoming trip to China. Politico says the U.S. delegation will be led by Commerce Secretary Wilbur Ross. Ag Secretary Sonny Perdue says the Foreign Ag Service, “was at Secretary Ross’ left elbow last week during the discussions specifically on commodities we believe we could expand our efforts to China with.” Perdue says China and the U.S. have discussed the possibility of China approving imports of more U.S. food grown using biotechnology. Perdue adds, “We’re also looking at non-tariff measures regarding some of the policies and protocols that restrict U.S. products from going into China. That will be part of the technical discussions as well.” Perdue wants a wider variety of ag exports sent to China, such as soybeans, rice, corn, and poultry, among others. China hinted on Wednesday when it’s Ministry of Commerce posted a statement saying, “China welcomes high-quality, competitive American products to enter the Chinese market.”

Trump Raises Doubts About U.S.-Chinese Trade

President Donald Trump cast doubts on Wednesday regarding the prospects for talks between the U.S. and China that are aimed at heading off a trade war. An Associated Press report says just four days after the two countries suspended their plans to impose up to $200 billion in tariffs on each other, Trump declared in a tweet that a more detailed agreement “will be too hard to get done.” While he says the talks are moving along nicely, Trump added that the negotiations would require a different structure and would need to allow the U.S. to verify results after completion. It’s not immediately clear what kind of structure the president has in mind. Talks in Washington, D.C., last week resulted in an agreement in which Beijing said it would “substantially reduce” America’s trade deficit with China. However, China didn’t commit to any specific amount of reduction. It also didn’t address the big issues between Washington and Beijing, which is the method China uses to try to overtake the U.S. technological supremacy, which is to demand that U.S. companies hand over some of their technology in exchange for access to the Chinese market.

Trump Cabinet Members Modifying H-2A Program

Ag Secretary Sonny Perdue, as well as the Secretaries of State, Labor, and Homeland Security are working together to streamline and simplify the H-2A agricultural visa program. The goal is to reduce cumbersome bureaucracy and ensure adequate protections for U.S. workers. The administration is working to modernize the H-2A visa program in a way that’s more responsive to stakeholder concerns and enables agriculture to have more confidence in the program as a valid source for legal labor. They also want to reinforce the programs strong employment and wage protections for the American workforce. By reducing the complexity of the current program, the administration is also planning to incentivize farmers’ use of the E-Verify program to make sure that their workforce is legally authorized to work in the United States. All four of the agencies issued a joint statement saying they’re looking forward to rolling out a more responsive program in the near future.

Thursday, May 24, 2018

Senators propose bill that would help alleviate the strain of transportation laws

Eleven Senators proposed a bipartisan bill that would help alleviate the strain of transportation laws such as the Electronic Logging Device (ELD) and hours of service rules for truckers hauling livestock.The Transporting Livestock Across America Safely Act was introduced by a bipartisan group led by Sen. Ben Sasse (R-Neb.) on May 23.The bill provides some fixes for the hours of service and the ELD through the following measures:Providing that hours of service and ELD requirements are inapplicable until after a driver travels more than 300-air miles from their source. Drive time for hours of service purposes does not start until after 300-air mile threshold.Extends the hours of service on-duty time maximum hour requirement from 11 hours to a minimum of 15 hours and a maximum of 18 hours of on-duty time.Loading and unloading times are exempt from the hours of service calculation of driving time, so are time spent waiting at facilities such as packing plants.Grants flexibility for drivers to rest at any point during their trip without counting against hours of service time.Allows drivers to complete their trip – regardless of hours of service requirements – if they come within 150-air miles of their delivery point.After the driver completes their delivery and the truck is unloaded, the driver will take a break for a period that is 5 hours less than the maximum on-duty time (10 hours if a 15 hour drive time).“Our ranchers and haulers are professionals who make the well-being of livestock their top priority and that includes safe transportation,” Sen. Sasse says. “The Department of Transportation’s current regulations endanger livestock during hot summers and cold winters causing significant stress on the animals and concern for the drivers. This bipartisan bill is good for our ranchers, good for our haulers, and good for our livestock.”Other Senators signing the bill include: Heidi Heitkamp (D-N.D.), Jerry Moran (R-Kan.), Joni Ernst (R-Iowa),  Jon Tester (D-Mont.), John Hoeven (R-N.D.), Tina Smith (D-Minn.), Pat Roberts (R-Kan.), Rand Paul (R-Ky.), Marco Rubio (R-Fla.) and Doug Jones (D-Ala.).“The transport of agricultural commodities, particularly livestock, poses unique challenges not faced by other segments of the trucking industry,” says Sen. Ernst. “The Transporting Livestock Across America Safely Act addresses these realities and the shortcomings of the current hours of service regulations by giving truckers the flexibility they need to get cattle, hogs, and other live agricultural commodities to their destination.” Livestock groups are pleased to see the proposed legislation with the U.S. Cattlemen’s Association (USCA), the National Cattlemen’s Beef Association (NCBA) and the National Pork Producer’s Council (NPPC) all backing changes to the hours of service rules. “We asked, and Congress answered. This is a historic moment for livestock and insect haulers to finally be afforded needed flexibility in the restrictive hours of service rules,” says Steve Hilker, USCA Transportation Committee Chairman and owner of Steve Hilker Trucking in Kansas. “Thank you to everyone who has put in many hours, many miles and many late nights to get this piece of legislation brought forth to the Senate floor. We look forward to working with the Senate - and the House - to get the Transporting Livestock Across America Safely Act across the finish line.” 

Administration Discord Over China Tariffs

Sources close to the White House tell Bloomberg that President Donald Trump backed off imposing billions of dollars in tariffs on Chinese goods because of discord within the administration. There’s also concern within the White House over the possibility of harming negotiations with North Korea. Trump also reportedly succumbed to pressure from farm-state Republicans, who heavily lobbied the administration to settle its differences with China, which had threatened to levy its own tariffs on American agricultural imports. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) said over the weekend that the administration’s plan to impose tariffs on Chinese goods has been suspended. However, former Trump chief strategist Steve Bannon told Bloomberg the deal was “capitulation.” Some White House officials say the retreat on tariffs is a result of discord on Trump’s economic team. Bloomberg says divisions are raw between free trade supporters like Mnuchin and White House Economic Adviser Larry Kudlow and the China hawks led by White House trade adviser Peter Navarro. Mnuchin and Navarro were said to have argued over China policy during a trip to Beijing earlier this month, and Navarro wasn’t as deeply involved during negotiations last week with a Chinese delegation that made a trip to Washington, D.C.

U.S.-China Trade War a Win For Other Nations?

A Politico report says the real winners of a trade war with China could be some of America’s top global trade competitors. As the two countries push toward a trade deal, long-term trends could be stacked against American producers when it comes to Beijing’s consumption. China will likely keep pouring resources into other countries in an attempt to diversify its sources for everything from agricultural goods to consumer goods. Brazil could bring millions of new acres into production faster with the help of Chinese investments in its roads and railways, which could be a detriment to American growers. The South American nation has taken over the globe’s number one spot as top soybean producer, supplanting the U.S. USDA estimates show that Brazil is already projected to increase soybean acres dramatically over the next 10 years. The challenge will be difficult to overcome for U.S. producers, who have all but maxed out their growable acres. China is also encouraging its own soybean farmers to increase their production.

Japan, Russia, and Turkey Talk Potential Trade Retaliation

The World Trade Organization says Japan, Russia, and Turkey have all warned the United States about possible trade retaliation for U.S. tariffs on steel and aluminum imports. An Agriculture Dot Com article says those tariffs would up the total U.S. tariff bill around the world to $3.5 billion annually. The three countries recently notified the World Trade Organization of their compensation claims. That follows similar moves by the European Union, India, and China. Each filing showed how much the U.S. tariffs would add to the cost of steel and aluminum exports to the United States. Russia says the Trump-imposed tariffs add up to $538 million in duties to its exports. Japan put the amount at $440 million and Turkey added another $267 million. They all reject the view that the U.S. tariffs are a matter of security concerns and are therefore exempt from WTO rules. Neither Japan or Russia specified how they will retaliate against U.S. exports, but Turkey listed 22 American goods it was planning to target, ranging from nuts, rice, and tobacco, to cars and steel products.

U.S. Government to Spend $50 Million in Seed Quality

The U.S. is trailing China in federal ag research and seed-breeding investments. China has outspent the U.S. in those categories for the past ten years. To help combat the low spending, House Democrats Mark Pocan of Wisconsin and Darren Soto of Florida introduced the Seeds for the Future Act earlier this year. A Farm Journal report quotes a release from the National Sustainable Agriculture Coalition as saying farm businesses need to overcome a host of obstacles to stay viable in today’s economy. The obstacles include increasingly unpredictable weather patterns, invasive pests, and previously unseen crop diseases. The release also says, “The Seeds for the Future Act will increase farmers’ access to these 21st-century seeds by making much-needed investments in breeding programs.” Funding will focus on developing seeds that help farmers combat the challenges they face in today’s growing environments. The Act ensures federal investments to support farmers and researchers who are working to develop seeds that will be effective in diverse farming operations and locations.

Marathon Petroleum Asks for RFS Waiver

Marathon Petroleum Corporation, one of the largest refining companies in the nation, requested a “hardship waiver” from the Environmental Protection Agency. Marathon wants one of its facilities exempted from its requirements under the Renewable Fuels Standard. Growth Energy CEO Emily Skor was not pleased with the news. She says, “Two of the largest corporations in the country are set to create an oil monopoly and they’re still expecting ‘small refiner’ handouts. This is what happens when the EPA regulators are permitted to ignore the president’s commitments to rural communities.” Skor says these waivers have already siphoned away billions of dollars from farm families to enrich some of the world’s largest oil companies, as well as a few well-connected investors like Carl Icahn. Skor adds, “Those gallons need to be restored and American consumers need immediate, year-round access to E15 as well.” Even Iowa Senator Chuck Grassley weighed in on the topic, saying, “That an oil company making billions of dollars in profits thinks it’s got a shot at receiving a hardship waiver shows how broken the process is.” The smallest Marathon refiner producers 93,000 barrels of product a day at its Canton, Ohio, location.

Crop Protection Companies Readying for Robot Sprayers

A solar-powered robot that looks like a table on wheels was recently moving through a field of sugar beets in Switzerland. The robot scans rows of crops with its camera, identifies weeds, and zaps them with blue liquid from its mechanical tentacles. A Reuters report says the Swiss robot is undergoing its final testing before the blue liquid is replaced with actual weedkiller. The machine is a new breed of AI weeders that investors say could disrupt the $100 billion pesticides and seeds industry by reducing the need for universal herbicides and the genetically modified crops that tolerate them. The industry is bracing for the impact of digital agricultural technology and some of the biggest companies are already changing their business models in anticipation. The stakes are high as herbicides are worth $26 billion a year in sales and account for 46 percent of pesticide revenue overall. Industry experts say some of the profit pools that are in the hands of major agrochemical companies could wind up in the hands of farmers and equipment manufacturers. While still in its infancy, the plant-by-plant approach is a marked change from the standard method of crop production. 

NCBA Applauds Introduction of Legislation Addressing Hours of Service Changes for Livestock Haulers

Group Calls For Passage of TLAAS Act Before Oct. 1 ELD Deadline

WASHINGTON (April 16, 2018) – The National Cattlemen’s Beef Association today applauded the introduction of the Transporting Livestock Across America Safely (TLAAS) Act, saying it would reform federal Hours of Service (HOS) rules in a way that ensures animal welfare, highway safety, and the well-being of livestock haulers. The bill was introduced today by U.S. Sens. Ben Sasse of Nebraska, Heidi Heitkamp of North Dakota, Jerry Moran of Kansas, John Hoeven of North Dakota, Jon Tester of Montana, Joni Ernst of Iowa, Marco Rubio of Florida, Tina Smith of Minnesota, Pat Roberts of Kansas, and Rand Paul of Kentucky. 
 
“The current Hours of Service rules for livestock haulers present big challenges for our industry and can often jeopardize the health and well-being of livestock,” said NCBA President and fifth-generation California rancher Kevin Kester. “Hauling livestock is inherently different than hauling products like paper towels or bottles of water. Live cattle can’t simply be left unattended in a trailer – especially in very hot or cold weather – for extended periods of time, and this bill takes that into account. Senator Sasse deserves a lot of credit for his leadership on this issue, and we thank all of the original cosponsors who stepped up to show their support for livestock haulers and cattle producers across this country.”
 
Livestock haulers are scheduled to have to start using Electronic Logging Devices (ELDs) to track their driving times and distances on Oct. 1, 2018. Under current rules, they would be required to turn on their ELDs after crossing out of the 150-air-mile radius from their loading point, after which they can only drive for 11 hours before taking a mandatory 10-hour break.
 
The TLAAS Act takes into full consideration the fact that there are living and breathing animals on the trailer that must be kept moving, and that they must get to their destination as quickly and as safely as possible.  This bill provides for more drive time for livestock haulers, as well as granting the flexibility for drivers to rest at any point during the trip without the break counting against HOS time. This bill also allows for another 150 air mile exemption on the back end of a livestock haul to account for the wait time that occurs when unloading live animals.
 
“Given the unique nature of livestock hauling – often very long distances between cow-calf operations and feedlots or processing facilities – and the fact that we’re transporting live animals that must be treated humanely – this legislation is vitally important and I think it strikes a balance coupled with common sense for everybody involved,” Kester added. “I hope Congress will pass this bill as quickly as possible so we can have this issue resolved before the ELD mandate for livestock haulers goes into effect on Oct.1.”

Wednesday, May 23, 2018

Washington Insider: The Fragile Trade Truce With China

POLITICO is reporting this week that the current trade “detente” with China is fragile, in spite of the president's partial victory claims, and despite the recent the market reaction.The reality behind the scenes is significantly less rosy, the group argues.The temporary detente is “masking continuing internal White House battles over how hard to push China for major concessions.” And, it papers over threats that a tariff battle could easily reignite over multiple flash-points including U.S. sanctions on China telecom giant ZTE and China’s role in high-stakes talks between the U.S. and North Korea.“In the long-term there is a 100% chance that the trade war reignites because we have not crafted anything close to a long-term solution,” said Derek Scissors, a China expert at the American Enterprise Institute.Nevertheless, the president was in a celebratory mood on Twitter on Monday. He issued a series of tweets praising the relatively muted joint statement – in which the Chinese only pledged to “significantly increase” purchases of U.S. goods and services, rather than the specific $200 billion commitment the U.S. wanted.Trump did inject a note of caution, tweeting that “China must continue to be strong & tight on the border of North Korea until a deal is made.”Beneath the surface, however, there remain sharp differences within the White House negotiating team over the approach to China with more hawkish voices including trade adviser Peter Navarro, Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer arguing that much bigger structural changes are needed from China rather than just some commitments to buy more U.S. products.On Sunday morning, Treasury Secretary Steven Mnuchin declared on Fox News that “we’re putting the trade war on hold” sending Asian markets higher and setting the stage for a Wall Street rally. But on Sunday evening, Lighthizer issued a statement that took a seemingly much sharper line.The differences were still sharply apparent on Monday morning, despite White House efforts to tamp them down.Ross appeared on TV to argue that the U.S. essentially has a gun pointed at China’s head.“This is not a definitive agreement. This is what we hope will be a path forward. If it doesn't work, the tariffs will go into effect,” Ross said before invoking the U.S. review of Chinese trade practices. "The review is still there. Our trade tools are getting ready to be used. And if need be, they will be used."Those words contrasted sharply with the sunnier views offered on Monday by Mnuchin and National Economic Council Director Larry Kudlow who together represent the more staunchly pro-free trade wing of the White House.Mnuchin on Monday rejected the idea that his comments on Sunday were at odds with Lighthizer’s statement. “The team is unified on this.”"We’re going to continue to have meetings and if these things aren’t fixed and we don’t get what we want, the president can always put tariffs back," Mnuchin said.Mnuchin declined to comment on a shouting match he had recently in Beijing with Navarro or blind quotes in the press from administration officials criticizing the Treasury Secretary for taking a soft line with the Chinese.Senior administration officials say the internal disputes are real and significant with Kudlow now taking over the free-trade advocacy portfolio that once belonged to his predecessor, Gary Cohn. One senior official said on Sunday night that Trump himself, for the moment, is siding with Kudlow and Mnuchin but that he could easily slip back into a desire to punish China with tariffs, siding once again with the White House hawks.For now, Trump’s threat to put as much as $150 billion in tariffs on Chinese exports to the U.S., and China’s threat to retaliate is on hold. But it could easily come back if the Chinese drag their feet on actions that could actually reduce the $375 billion trade deficit the U.S. has with China, which is the president’s biggest concern.And administration officials acknowledge that much of Trump’s inclination to take a softer line with China is based on his hope that they will help him with an upcoming summit meeting with North Korean leader Kim Jong-un. Trump is counting on China to play a major role in helping deliver an agreement that would see North Korea drop its nuclear program in return for an easing of economic sanctions.There is also the fraught issue of ZTE, sharply sanctioned by Ross' Commerce Department last month after the Chinese telecoms giant was caught violating the terms of a March 2017 $1.19 billion penalty agreement for making illegal sales to Iran and North Korea.Chinese Vice Premier Liu He, who led the recent round of negotiations for China in Washington, has made relief for ZTE a key component of any agreement with the U.S. on trade. U.S. negotiators refused to include anything on ZTE during talks over the weekend, leading the Chinese to decline to agree to any specific dollar target for new U.S. imports. Congress is also moving to block any effort by the Trump administration to remove sanctions on ZTE, meaning the White House may not even be able to offer the biggest thing the Chinese want.So, if the Chinese determine that the U.S. has failed to deliver on the thing they want the most, they could back out of any agreement, putting the trade war back into effect. “You saw what happened with Trump’s ZTE tweet just a week ago and how much blowback he got from that,” Scissors said. “There are just so many ways this deal could blow up.”So, there is much to be concerned about on trade issues, but some reasons for optimism, as well. This is a fight producers should watch closely as it proceeds, Washington Insider believes.

Some Lawmakers Push Back on 'Deadlines' for NAFTA 2.0 Talks

North American Free Trade Agreement (NAFTA 2.0) talks should proceed as needed to “get these negotiations right,” Senate Finance Committee Chairman Orrin Hatch, R-Utah, said this week in remarks on the Senate floor. He says the most important factor for determining when Congress will vote on an eventual agreement is the quality of the deal.Hatch said substance matters “and we should not allow other considerations to impede achieving our goals.”Meanwhile, a group of senators also warned U.S. Trade Representative Robert Lighthizer against using a potential threat to withdraw from NAFTA to force Congress to support the trade deal.

House Vote on Farm Bill After Immigration Measure

The House will have another chance to vote on the farm bill June 22, according to House Agriculture Committee Chairman Mike Conaway, R-Texas.Conaway said the Freedom Caucus will get the immigration vote that it demanded before the House takes the farm bill up again. The bloc of conservative Republicans helped sink the bill as all Democrats and 30 Republicans voted against the package. Conaway said he does not plan to alter the farm bill, adding it was defeated because of the immigration vote issue between House leaders and the conservatives.The Freedom Caucus has demanded a floor vote on a conservative immigration bill (HR 4760) by Rep. Bob Goodlatte, R-Va."I got the votes if we have the immigration thing settled. The issue Friday was immigration not the bill," Conaway said. "My magic number is 215 given the current seven (open) seats."House Majority Whip Steve Scalise, R-La., said the plan is to vote on the Goodlatte immigration bill some time before the June 22 second vote on the farm bill.

Tentative Next Steps for House Farm Bill

The House Farm Bill will get another vote on June 22 after a separate vote on a conservative immigration bill. House Majority Whip Steve Scalise (Ska-LEESE) announced the schedule on Monday. The conservative immigration bill is sponsored by House Judiciary Chair Bob Goodlatte of Virginia and Homeland Security Chair Michael McCaul of Texas. Roll Call reports the bill contains border wall funding, security and enforcement provisions, cuts to legal immigration, and a process for Deferred Action for Childhood Arrivals Program recipients to obtain three-year renewals of their work permits. Scalise says, “We’re looking at moving the farm bill on June 22 and having the Goodlatte/McCaul bill come up during the third week of June.” The Freedom Caucus was part of the group helping to sink the farm bill last Friday over a desire to vote on immigration first. Caucus Chair Mark Meadows says the timeline announced by Scalise is fine with him as long as the Goodlatte/McCaul bill is brought to the floor under its own rule. As of right now, the McCaul/Goodlatte bill is expected to be short of the votes needed to pass, but Scalise says there’s an effort underway to come up with something that would pass. 

What’s Next for China-U.S. Trade?

Politico says the preliminary trade agreement between China and the U.S. announced over the weekend raises more questions than it answers. No one knows how soon it comes together and things start to happen. While China agreed to buy significantly more American agricultural products, there aren’t any hard numbers attached to that promise yet. U.S. Commerce Secretary Wilbur Ross will be traveling to Beijing to negotiate long-term agricultural and energy sales contracts. Last November, Ross announced more than $250 billion in business deals between the U.S. and China. One of those was a $43 billion agreement involving the sales of liquified natural gas from Alaska to China. But, during a Monday television appearance, Treasury Secretary Steven Mnuchin (Muh-NOO-chin) seemed to be talking about that very same agreement as evidence of China’s new commitment to buy American agricultural and energy products. Politico says the temporary trade pause seems to be masking internal White House battles over how hard to push China for major concessions. In the meantime, President Trump once again took to Twitter, touting the pause in tensions as a major victory.

Farmers for Free Trade Suggestions on Improving China/U.S. Trade Relations

Farmers for Free Trade call the framework of a trade agreement between the U.S. and China as a good first step toward ending tensions that have hurt American agriculture. The group applauds the Trump Administration’s focus on supporting U.S. agricultural exports. However, they do note that there’s still a lot of work to do in order to put a solid agreement in place. Among the things Farmers for Free Trade would like to see happen in negotiations between the two countries, they’d like to see U.S. officials address the non-tariff barriers that have always been a mechanism that China uses to keep American agriculture exports lower than they should be. Farmers for Free Trade also says the U.S. needs to provide farmers with a clear strategy on defusing tensions caused by steel and aluminum tariffs, as well as the North American Free Trade Agreement. The group also wants to see USDA officials at the negotiating table with the U.S. and China, calling them the “experts and advocates” for American agriculture. The other key aspect Farmers for Free Trade hopes to see from Washington, D.C., is the continued emphasis on opening new markets for American goods. They’d like the focus moved away from old agreements and to reaching new ones instead.

Farmers Union Wants Immediate Action on E15 Waiver

The Environmental Protection Agency’s delay in allowing year-round use of E15 gasoline threatens to harm markets for family farmers. National Farmers Union President Roger Johnson wrote a letter to EPA Administrator Scott Pruitt, urging the EPA to immediately institute a waiver for summertime sales of E15. Johnson says the year-round use of E15 would have significant benefits for farmers, the economy, energy independence, and the environment. Currently, an arbitrary restriction on the use of E15 in summer months limits the amount of ethanol that can be blended into the nation’s fuel supply. EPA has been actively working on allowing year-round use of E15 since October of 2017, plus, President Trump committed to allowing an E15 waiver earlier this year. However, EPA has yet to take any action or provide any timetable as to when a waiver can be expected. This delay in issuing the waiver is threatening to upend any potential benefits of a waiver in the upcoming summer months of 2018. “It’s now May, and the summer restrictions on E15 for this year are looming with no apparent movement from EPA on the matter,” Johnson says in his letter to Pruitt. “Year-round use of E15 is not a new issue for EPA.” The letter goes on to urge Pruitt to act in an expedited manner to allow the use of E15 this summer.

House Members Want Thailand Ban of U.S. Pork Ended

Members of the House of Representatives sent a letter to Taiwan’s Ambassador to the U.S. asking for the removal of import restrictions on American agricultural products, including pork. The bipartisan letter was signed by 44 House members and sponsored by Republican David Young of Iowa and Wisconsin Democrat Ron Kind. The letter calls for the U.S. to suspend trade benefits enjoyed by Thailand if it doesn’t grant reciprocal access to American goods. Jim Heimerl (HI-merle), National Pork Producers President, says it’s time for Thailand to end its unwarranted ban on U.S. pork. “We thank Representatives Young and Kind for leading this call to action on behalf of America’s pork producers and other farmers,” he says. The Office of the U.S. Trade Representative agreed with the NPPC request to review Thailand’s eligibility for the U.S. Generalized System of Preferences program because of that country’s failure to provide access to its market for U.S. products, which includes pork. The NPPC is asking the Trump Administration to reduce or eliminate the benefits Thailand receives under the program, which gives duty-free access to certain goods entering the United States. The program allows the U.S. to remove market access for other countries that don’t provide the U.S. “equitable and reasonable access” to its market.

Organic Farmers Association Applauds Organic Checkoff Withdrawal

The Organic Farmers Association is happy the U.S. Department of Agriculture took action to terminate the rulemaking process to establish a mandatory national research and promotion program for organic. The proposed program was causing divisions among the organic community. Checkoff programs must have the support of an entire industry to be implemented, which this didn’t have. The proposed Organic Research and Promotion Program would have required all certified organic operations, even those exempted from the checkoff, to submit annual gross sales reports. All entities whose gross sales exceeded $250,000 a year would have been legally required to pay .0001 percent of their annual organic sales. Jennifer Taylor, Vice President of the OFA, says, “Organic farmers already fulfill a heavy load of paperwork for their annual organic certification. Additional federally-mandated paperwork would have been overly burdensome, especially for the 75 percent of certified organic farmers who would have been exempt from the checkoff.” 

ICYMI: Gianforte Leads Effort to Reduce Burden of ELD Mandate on Montana’s Small Business Truckers

Three Congressmen Ask FMCSA To Grant OOIDA’s ELD Exemption
May 18, 2018 Three Republican congressmen sent a letter to Federal Motor Carrier Safety Administration Administrator Ray Martinez calling for his support for ELD exemption for small-business trucking firms. In a May 8 letter, U.S. Reps. Greg Gianforte, R-Mont.; Steve King, R-Iowa; and Brian Babin, R-Texas, asked Martinez to grant an exemption request filed by the Owner-Operator Independent Drivers Association seeking relief from the ELD mandate on behalf of small business truckers with a proven safety record. The letter cites the economic impact on small-business trucking, prompting rate increases for freight and adding burdensome costs to the bottom line of trucking companies without providing much in the way of safety benefits. “OOIDA’s petition is the most extensive solution for resolving these concerns regarding the ELD mandate,” the letter states. “When granted, this petition will help farmers and ranchers who operate their own trucks and are concerned about animal health and welfare. The burden of the ELD mandate falls disproportionately on our rural communities, since they are heavily dependent on agriculture.” OOIDA’s petition requests that motor carriers considered to be a “small transportation trucking business” who do not have a Carrier Safety Rating of “unsatisfactory” and can document a proven history of safety performance with no attributable at-fault crashes should be exempted from the ELD requirement. The Small Business Administration classifies a small transportation trucking business as earning $27.5 million or less in average annual receipts. The Association is asking FMCSA for a five-year exemption from electronic logs. “Granting OOIDA’s request would further illustrate the administration’s commitment to delivering regulatory relief to help sustain economic growth,” the letter states.  

Public Lands Council Calls for Project Proposals to Strengthen Federal Lands Ranching

WASHINGTON (May 22, 2018) – Today the Public Lands Council (PLC) launched a formal Request for Proposals (RFP) for projects designed to strengthen the long-term viability of the public lands ranching industry. Funded by the PLC Endowment Trust, the RFP calls for submissions that address key issues facing federal lands ranchers. Desired project themes include:Generating current, relevant data on the public perception and misconceptions amongst suburban/urban and non-western consumers and voters regarding public lands ranching and surrounding issues;Strategies for young livestock producer engagement and development;Contributing to the body of science and data illustrating the importance of grazing to western land management, ecosystem services and other benefits of grazing, and other such relevant science and data; andExploring the topics of feral horse and burro numbers as well as potential solutions to solve the overpopulation problem.With more than 22,000 public land ranchers maintaining 250 million acres of U.S. public land, grazing on federal lands contributes to the economic and social sustainability of America’s rural communities. All those interested in submitting a proposal should click here for the full RFP. The proposal form and any additional materials should be submitted via email to anelson@beef.org no later than Sunday, July 15, 2018.The PLC Endowment Trust was established for the purpose of maintaining an endowment to protect, enhance and preserve public lands and the public lands livestock grazing industry. For more details please visit www.publiclandscouncil.org. 

Tuesday, May 22, 2018

Perdue: Trump Holding Tough on Biofuel Policy

President Donald Trump has "hung tough" on U.S. biofuel policy as various interests have tried to push several policies that could negatively impact the biofuel mandates, USDA Secretary Sonny Perdue said in Nebraska last week."He has been a real stalwart," Perdue stated. One focal point has been the liberal use of waivers of Renewable Fuel Standard (RFS) obligations for small refiners, and Perdue noted that the deal brokered by the White House has called on EPA to reallocate those waived obligations to other refiners.The prospect of allowing exported ethanol to count toward RFS obligations is one that Perdue labeled acceptable as it will drive demand and will come in concert with the reallocation of waivers, "making sure we reallocate those waived gallons for the future," Perdue said. He indicated the waivers would be "reallocated in the next volume obligation."EPA is expected to announce their proposal on 2019 biofuel (2020 biodiesel) Renewable Volume Obligations in late June or early July. It is currently under review at the Office of Management and Budget (OMB).

Lawmakers Worried About What Concessions US May Be Offering China

Reports China has agreed to import large amounts of U.S. ag goods as part of a tentative framework deal to resolve a trade dispute between the nations have prompted some lawmakers to express concern about what kind of concessions the administration may be offering China.Leading up to the latest round of talks, China lifted tariffs on U.S. sorghum and the U.S. eased sanctions on the Chinese telecom equipment maker ZTE Corp., allowing the company to stay in business.U.S. lawmakers from both political parties have pointed questions about what the administration has agreed to give up in exchange for a truce with China. The Commerce Department had banned ZTE from receiving imports from its U.S. suppliers, a move that crippled the corporation. The administration would face a "real backlash" if it offers concessions to ZTE as part of the trade talks, Sen. Lindsey Graham, R-S.C., told Fox News.Larry Kudlow, Trump's top economic advisor, told ABC that although there may be "perhaps some small changes around the edges" in U.S. action on ZTE, there will still be big fines and other remedies, and, he added, "do not expect ZTE to get off scot-free. It ain't gonna happen."

Washington Insider: New Tariffs on Hold for Chinese Goods

Well, it appears that the administration has changed its mind on tariffs on Chinese goods. On Sunday, Treasury Secretary Steven Mnuchin told the press said that the administration put its trade war with China “on hold” after two days of talks in Washington that he said had produced an agreement on increased Chinese purchases of American products and measures to make it easier for U.S. companies to operate in China, the Washington Post and most other urban media reported.Even though the agreement lacked specifics, it halted tariffs that the administration had threatened to impose on up to $150 billion in Chinese products.In an earlier sign of softening, the president directed administration officials to consider easing harsh penalties on a prominent Chinese telecom company that had violated US sanctions on Iran and North Korea.Responses to the decision were mixed. The Washington Post said that “President Trump’s tough-guy persona is taking a beating from China, judging from the reaction of some of his allies on Capitol Hill and in the trenches of the trade wars.”“The former business executive, who prides himself on his negotiating savvy, is now facing criticism for bending to the Chinese government on two key trade disputes in the space of a week,” the Post said.“It’s a huge disappointment, given the expectations,” said Scott Paul, president of the Alliance for American Manufacturing, a partnership between steelworkers and their employers. “It plays right into Beijing’s hands ... and is more of the same old failed policies we saw under the Bush and Obama administrations.”Administration officials on Sunday scrambled to cast the Chinese talks as a victory.“Not good enough. Time to take the gloves off,” Dan DiMicco, former chief executive of the steelmaker Nucor, tweeted Saturday.Sen. Marco Rubio, R-Fla., warned in a tweet Sunday that by continuing to talk while putting the tariffs on hold “China has out-negotiated the U.S. again.”The president personally demonstrated an appetite for harsher measures, saying at one point that trade wars were “good and easy to win.”The administration’s rocky handling of relations with China reflects a complex intermingling between economic and national security, the Post said. Trump on Friday proclaimed that the United States “has entered a new era in trade policy that is based on the recognition that our economic security is critical to our national security.”In March, he cited national security to justify imposing tariffs on imported steel and aluminum, a move designed to boost domestic employment. But now, national security concerns are causing him to give ground on other economic objectives.Dennis Wilder, a former China analyst for the Central Intelligence Agency, said the president’s softer line was linked to his desire for a successful June 12 summit with North Korean leader Kim Jong Un, a Chinese ally.The recent visit to Beijing of a North Korean delegation of municipal and provincial officials—the first such visit in eight years—suggested that Beijing might have been preparing to relax its sanctions on Pyongyang, perhaps in retaliation for Trump’s tariff threats, Wilder said.“The administration has been a little rattled by how quickly the China-North Korea rapprochement occurred,” he said. “He probably believes that China is using the North Korea card in the trade negotiations.”Mnuchin said the two sides have agreed on a “framework” to avoid the sanctions that require China to lower tariffs on unspecified American goods, protect US technology and buy more made-in-the-USA items.“Right now we have agreed to put the tariffs on hold while we try to execute the framework,” Mnuchin said on Sunday.Commerce Secretary Wilbur Ross will be dispatched to Beijing “immediately” to work out the details of accelerated Chinese purchases, said Mnuchin, who led the U.S. delegation in the talks with a Chinese team headed by Vice Premier Liu He.Amid concerns that Trump was also preparing to soften the punishment for a major Chinese telecom company that had illegally traded with Iran and North Korea, Mnuchin said the administration “didn’t agree to any quid pro quo.” Last week, after Trump directed the Commerce Department in a tweet to help the company return to normal operations, lawmakers from both parties objected. The Republican-controlled House Appropriations Committee amended a must-pass annual spending bill to bar the department from lifting the penalties.“I can assure you that the president wants us to be very tough on ZTE, and all he did was ask the secretary to look into this,” Mnuchin said.Kudlow on Friday said that ZTE would have to overhaul its top management ranks before the United States would ease the enforcement action.Mnuchin also suggested that Trump was prepared to wait until 2019 to wrap up negotiations aimed at a new North American trade deal. He confirmed that the United States, Mexico and Canada remain “far apart” after nine months of talks, having missed a deadline set by House Speaker Paul Ryan, R., Wis., last week to reach a deal on which lawmakers could vote this year.“The president is more determined to have a good deal than he is worried about any deadline,” the treasury secretary said.So, we will see. Cynics see the growing anger among producer groups as the fall elections near as important, along with the talks with North Korea. But, whatever the source of the policy shift, it is a new trend that producers should watch closely as the season progresses, Washington Insider believes. 

House Farm Bill Dormant Amid Immigration Dispute

House Republican leadership is currently struggling with immigration issues and it’s put the House farm bill that didn’t pass on Friday right on the back burner. The Hagstrom Report describes the bill as “dormant.” Speaker Paul Ryan called for reconsideration of the bill immediately after the vote on Friday. He declared that the “ayes” had won the voice vote but didn’t call for a roll call vote. The schedule of bills considered on Monday evening didn’t contain the farm bill. Under House rules, it has two legislative days to take a vote on reconsideration of a bill. The House is scheduled to leave on Thursday afternoon for a week-long Memorial Day break. Every House Democrat and 30 Republicans voted against the House farm bill. The Republicans were a mix of the Freedom Caucus members, as well as moderate Republicans, who consider the bill’s changes to the Supplemental Nutrition Assistance Program to be too restrictive. Members of the House Freedom Caucus want leadership to bring up a restrictive immigration bill. Moderate Republicans are attempting to force a vote on a proposal to protect the immigrant students without legal status, known as Dreamers.

USDA Official Hopeful by Recent Trade Advancements with China

While a trade war may be on hold between the U.S. and China, a Department of Agriculture official says the Trump administration remains ready to support farmers and ranchers, if needed. China and the U.S. put the trade war tariffs on hold, for now, as the two sides are negotiating. Speaking at the ONE18: The Alltech Ideas Conference, USDA Undersecretary Bill Northey told attendees “we’ll see how that all plays out.” Northey told attendees Agriculture Secretary Sonny Perdue and President Trump are committed to “make sure that we have protection for agriculture,” through a trade war “if and when those things happen.” Further, Northey said he “hopes there is real opportunity to grow our exports to China” as China “needs the products we produce.” However, as for timing, Northey said with a chuckle from the audience “the next little while could be the next Tweet.” At nearly the same time, President Trump on Twitter said of the potential deal with China, that: “They will purchase from our great American farmers practically as much as our farmers can produce.”

China Promises to Buy More American Agricultural Goods

After two rounds of trade talks between the world’s largest economies, China has promised to buy significantly more U.S. agriculture and energy products to help reduce its trade surplus with America. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) outlined his targets for boosting sales over the weekend but it remains unclear if China has agreed to reduce the deficit by the $200 billion that the Trump Administration has been asking for. Mnuchin told Fox News Sunday that Commerce Secretary Wilbur Ross will be going into China looking for hard commitments in agriculture, “where we expect to see a very big increase, 35-40 percent increases, in agriculture this year alone.” In the meantime, Politico says the U.S. will hold off on its threat to slap tariffs on up to $150 billion in Chinese goods as a way to deter intellectual property theft and forced technology transfers. A joint statement from the two countries issued over the weekend didn’t specify whether or not the two countries would back off on penalties already imposed relating to the administration’s steel and aluminum tariffs.

Administration Focusing on Good, Not Quick, NAFTA 2.0

Bloomberg says the U.S., Canada, and Mexico are all on separate pages when it comes to a new North American Free Trade Agreement. Treasury Secretary Steven Mnuchin (Muh-NOO-chin says the administration is more focused on reaching a good deal rather than an immediate one. Mnuchin says it doesn’t matter if it’s passed in this session of Congress or the next one. Canadian Prime Minister Justin Trudeau said last week that there was a good NAFTA deal already on the table. However, U.S. Trade Representative Robert Lighthizer said just hours later that the “governments were nowhere close to a deal.” Mnuchin’s comments are the latest to suggest that the door may be open to finishing the NAFTA negotiations sometime after the Mexican presidential election on July first. However, he did raise the prospect of the president having multiple options on the table. “I’m not saying he’s willing to let it spill over,” Mnuchin says, “but he has all his alternatives. I’m just saying that, right now, we’re focused on negotiating a good deal and not focused on deadlines.” Mexico’s chief negotiator says the three countries have agreed on nine of about 30 chapters in the agreement.

John Deere Raising Prices to Cover Steel Costs

Deere & Company is raising equipment prices in order to protect profits as costs rise. The farm and construction machinery manufacturer says profits were up 50 percent and equipment sales were up 34 percent annually in its latest quarter. However, a Dow Jones report says those numbers disappointed analysts. Deere’s share rose nearly six percent as investors are focusing on Deere’s strong outlook for sales growth this year. Rising expenses in recent quarters have weighed down Deere’s performance, even as machinery demand picks up. Deere joined a number of U.S. manufacturers in reporting rising costs as a growing U.S. economy drives up the prices for materials and shipping. Prices for steel and aluminum have been pushed up by U.S. tariffs on imported metal products. Deere says it will raise prices because of both higher production costs, as well as increasing transportation costs, as it begins to take orders on 2019 models. The company predicts overall sales of farm and construction equipment will increase by 33 percent this year to $33.7 billion.