USDA Announces Intention to Take Another Swing At GE Crop Rules

USDA's Animal and Plant Health Inspection Service (APHIS) announced it is considering changes to rules on genetically engineered crops that would allow the agency to focus on "risks that may be posed by certain GE organisms rather than on the methods used to produce the product."Changes to the APHIS rules would also make the regulatory process "more transparent while removing unnecessary regulatory burdens," according to the agency.The notice to be in today's Federal Register provides little insight into how the rules might be revamped, asking for stakeholder input on an array of issues related to APHIS' authority over GE plants and how interested parties may be affected.The move marks the third time APHIS has launched a rulemaking to try and change its 30-year old GE crop regulations.

Sen. Brown is talking with USTR to exempt Canada, Mexico from steel tariffs

Sen. Sherrod Brown, D-Ohio, said he was working with U.S. Trade Representative (USTR) Robert Lighthizer on a way to exempt Canada and Mexico from steel and aluminum tariffs imposed by President Donald Trump.Brown said Trump's tariffs were necessary to protect U.S. steel and aluminum producers against the damaging effect of Chinese excess capacity. But he said shared the concern of many senators about Canada and Mexico being covered by the tariffs."I am working with the administration to reach a solution through negotiations. I encourage my colleagues to do the same," Brown said. "I talked to Ambassador Lighthizer last night. We are in a holding pattern with the NAFTA talks until Mexico’s election on July 1. But soon after that election, the NAFTA talks will pick right back up and steel and aluminum tariffs will be part of that dialogue.”

Washington Insider: A New COOL Debate

Food Safety News is reporting this week that two influential groups are arguing that it would help domestic producers and consumers alike if USDA would change its labelling policies for meat. The Lincoln, Neb.,-based Organization for Competitive Markets and the Denver-based American Grass-fed Association have petitioned the Food Safety and Inspection Service (FSIS) for the policy amendment.FSN says that current USDA policy permits labeling meat as a “Product of the USA” if it meets either one of two criteria. The first is if the country to which the product is exported requires the labeling and the product is processed in the U.S.The second is if the product is processed in the U.S.Instead, the two groups want new language that would read, “If it can be determined that significant ingredients having a bearing on consumer preference such as meat, vegetables, fruits, dairy products, etc., are of domestic origin (minor ingredients such as spices and flavorings are not included). In this case, the labels should be approved with the understanding that such ingredients are of domestic origin.”OCM and AGA are concerned that the current USDA policy allows foreign imported meat and meat products to be brought into the U.S., processed through a USDA inspected plant and labeled “Product of U.S.A.” They say that is counter to the legal authority granted to FSIS in federal law and by its regulations.As a result, they argue that the current policy is having the very adverse outcomes on farmers and consumers that Congress specifically stated were the consequences it intended to prevent when enacting the Federal Meat Inspection Act.Now, FSIS has opted to put the petition out for public comment until Aug. 17, a sign the agency may give serious consideration to the change.The current policy has more impact on some market segments than others, FSN says. About 91% of U.S beef consumption is from domestic production. However, only 20 to 25 of the grass-fed beef market in the U.S. is from local suppliers. Grass-fed beef from Australia and South America make up the difference; some with a “Product of USA” labels due to USDA’s policy.The organizations argue that the products most affected by the current policy are those from firms who have been transitioning their operations to grass-fed beef. “This market opportunity has been the one bright spot in U.S. cattle production with sales nearly doubling annually,” the petition says.OCM is a national organization with the stated purpose of working on behalf of America’s farmers and consumers to ensure agricultural markets are fair and transparent. It is a public policy research and advocacy organization. OCM has been a leader in efforts to ensure consumers have “the information they need to know the origin of their meat and meat products.” The group played a crucial role in the passage of mandatory Country of Origin Labeling in 2002, FSN says.OCM claims the current USDA labeling policy hinders its effort to assist US family farmers in connecting with U.S. consumers who demonstrate a preference for US domestic meat and meat products. AGA is the nation’s leading organization in the development of grass-fed meat production and market development for producers of grass-fed beef, dairy, and pastured pork.Congressionally mandated Country-of-Origin labeling was repealed after the World Trade Organization found it violated restrictions on non-tariff barriers to international trade. WTO would have permitted Canada and Mexico to imposed retaliatory tariffs on the US if the COOL regulations had remained in place.In spite of the findings of the international regulatory authorities concerning the earlier COOL regulations--and the certain strong opposition from trading partners to the new labels--protectionist sentiments across country are much stronger now than they were when the earlier labels were imposed. So, we will see. This is yet another fight that could affect markets and trade and one producers should watch closely as it emerges, Washington Insider believes.

Senate Passes Farm Bill, Next Stop: Conference

The Senate passed a bipartisan farm bill Thursday, sending the legislation to conference so the House and Senate can mend their differences. The vote, 86 to 11, capped off a day of consideration on the Senate floor. In a way, the Senate offered a warning shot to the House, tabling an amendment Thursday afternoon that would tighten work requirements under the Supplemental Nutrition Assistance Program, in a lopsided vote 68-30, showing resistance to similar language in the House bill. Meanwhile, House Republicans charge it may be difficult to pass a final bill through the House without SNAP reforms. The Senate bill was blocked Thursday morning by Senator Marco Rubio regarding Cuba trade provisions by Senator Heidi Heitkamp, but the two reached an agreement to allow USDA trade funding to Cuba, if it’s in accordance with administration policy, and allow consideration of the farm bill Thursday.Overall, the Senate bill offers little fanfare in major changes, compared to the current bill that expires later this year. The bill includes Senator John Thune’s amendment to allow partial haying and grazing on Conservation Reserve Program land, which was approved by voice vote before final consideration of the bill. Included in the bill is Senator Chuck Grassley’s proposal to reform the definition of “actively engaged” in a farming operation in order to receive farm payments. Before passage, the Senate defeated an amended by Senator Mike Lee that farm groups, such as the National Cattlemen’s Beef Association, say “sought to undermine commodity checkoff programs.

CDC Retracts Farmer Suicide Rate Findings

The Centers for Disease Control and Prevention a week ago confirmed its widely cited research on farmer suicides was wrong. The research from 2016 reported that farmers have the highest suicide rate in the country. That report found that workers in the “farming, fishing, and forestry,” job category held a suicide rate over four times the national average, far and away the highest in the study. But, the CDC told New Food Economy in an email it had misclassified farmers as farming, fishing, and forestry, or “Triple-F,” workers. The revised rate for Triple-F workers is now third among occupational groups in the study, while CDC has yet to release a suicide rate for farmers. Under technical terms, farmers are considered managers, according to federal guidelines. The suicide rate among managers, in contrast, was average. Still, of those in the “Triple F” category, nearly 90 percent are agricultural workers.

International Lawsuit Targets Heart of Trump Tariffs

A lawsuit filed at the Court of International Trade targets the heart of President Trump's trade agenda, the Section 232 steel and aluminum tariffs. An industry group that represents steel importers and traders will also challenge the constitutionality of the law that gave the president the power to enact the tariffs. The American Institute for International Steel filed the lawsuit, along with two of its member companies, and seeks a court order preventing further enforcement of the 25 percent tariff increase. The tariffs are impacting multiple U.S. industries, from equipment manufacturers, brewing companies that use aluminum cans, automakers and nail and fastener makers. The tariffs, according to the industry group, has prompted a 50 percent increase in product prices for U.S. steel-using manufactures. Additional waves of impacts are expected through retaliatory tariffs, including those from China on U.S. agricultural products that are set to start late next week.

Dairy Industry Asks Trump to Suspend Steel and Aluminum Tariffs

More than 60 companies and organizations representing American dairy farmers and cheese makers commended President Donald Trump this week for his efforts on equitable trade and for insisting that Canada halt its market-distorting dairy practices. At the same time, the companies urged the administration to reconsider its imposition of new tariffs on Mexico in light of it’s “constructive engagement” in North American Free Trade Agreement negotiations, and the harm that Mexico’s retaliatory tariffs will have on U.S. dairy’s trade with its largest market. In retaliation for U.S. actions on steel and aluminum imports, Mexico recently added new tariffs, some of which will reach as high as 25 percent next month, on American-made cheeses, among other products. The National Milk Producers Federation says the tariffs will “certainly diminish demand for high-quality dairy products that are produced across the United States.”

Arrest Made in $5.8 Million Cattle Fraud Case

A Texas man has been arrested on theft charges in a case that encompasses more than ten counties in Texas and Oklahoma, 8,000 head of cattle and outstanding loans of more than $5.8 million. The investigation by the Texas and Southwestern Cattle Raisers Association and Texas Rangers started more than a year ago. A bank contacted authorities after Howard Lee Hinkle, 67, defaulted on several loans worth millions. When bank officials acted on a court order to gather the approximately 8,000 yearling cattle put up as collateral they were unable to locate any of the animals. As the investigation continued, the Rangers identified various properties and cattle listed in the loans, but found that none were legitimately owned by Hinkle. Authorities suspect that Hinkle deceived the bank by showing them fraudulent documentation and cattle that belonged to other individuals. Hinkle was arrested this week and faces felony charges and up to life in prison.

Nationwide Awards 29 Fire Departments with Grain Bin Rescue Technology

The self-proclaimed number one farm insurer in the United States is providing grain bin rescue technology to 28 fire departments throughout the United States. Nationwide, in partnership with the National Education Center for Agricultural Safety, selected the fire departments as winners of the fifth annual Nominate Your Fire Department Contest. The contest was created in accordance with Grain Bin Safety Week, after identifying a lack of specialized resources available to rural fire departments, who are often the only line of defense against grain bin entrapments. Brad Liggett, president of Nationwide Agribusiness, says that until farmers are “convinced to develop a zero-entry mentality,” Nationwide will continue to make rescue resources as widely available as possible. Over the last 50 years, more than 900 cases of grain entrapments have been reported in the United States, and have resulted in a 62 percent fatality rate. Since 2014, Nationwide has awarded rescue tubes and specialized training to 77 fire departments across 23 states. 

NCBA: “Rejection of Lee-Booker Amendment is a Win for America’s Cattle Producers”

WASHINGTON – (June 28, 2018) -- Kevin Kester, President of the National Cattlemen’s Beef Association, today released the following statement in response to the U.S. Senate's rejection of an amendment to the 2018 Farm Bill offered by U.S. Sens. Mike Lee (Utah) and Cory Booker (N.J.) that sought to undermine commodity “checkoff” programs:
 
“The rejection of this amendment is a win for America’s cattle producers, who voluntarily created and continue to overwhelmingly support the beef checkoff system. Legislation like the Lee-Booker amendment is largely pushed by militant vegans and extreme political organizations that essentially want to end animal agriculture.
 
"We're happy that producers can continue to lead the checkoff system and contract with whatever producer-led groups will best promote beef consumption and research."

"We want to thank Senate Majority Leader Mitch McConnell, Agriculture Committee Chairman Pat Roberts and every other Senator who opposed this wrong-headed amendment today." 

Montana Farm Bureau praises Senate passage of farm bill

The Montana Farm Bureau is pleased the 2018 Farm Bill has passed the Senate.“Today is a great day because the 2018 Farm Bill has passed the Senate in a timely manner,” said MFBF President Hans McPherson. “We are very thankful for Senator Jon Tester and Senator Steve Daines’ support of this bill. Farmers and ranchers face a challenging agricultural economy and are concerned about our export markets. At least the passage of this bill is some bright news for ag.”American Farm Bureau President Zippy Duvall said, “Chairman Roberts and Ranking Member Stabenow worked with other members of the Senate Agriculture Committee to deliver a bill that will continue to provide the risk management tools that America’s farmers need more than ever before. And the fact that Leader McConnell agreed this should be a legislative priority helped move this very important bill forward in the Senate.”“Of course, no bill is ever perfect, but this bipartisan effort gives us a solid framework for progress,” said Duvall. “We do have concerns about some of the provisions that were added to the bill that make it harder for farmers to manage risk, but we are confident that those issues can be satisfactorily addressed by the House/Senate conference committee. We look forward to working with conferees from both houses to get the best possible farm bill done for rural America.” 

National Cattlemen’s Beef Association releases statement in response to passage of the Senate Farm Bill

WASHINGTON – (June 28, 2018) -- Kevin Kester, President of the National Cattlemen’s Beef Association, today released the following statement in response to passage of the Senate Farm Bill, which passed by a vote of 86-11:

“Today’s successful Senate vote is another step forward for the Farm Bill, but much work remains to address the priorities of American cattlemen and women. While the Senate version includes permanent authorization of the Foot and Mouth Disease Vaccine Bank, zero dollars are provided. The Senate version also left out important changes to the Conservation Title that were included in the House version of the bill.  We appreciate all the Senate’s work on behalf of cattle producers, but the House bill includes provisions of critical importance to NCBA members.”   

Week's export sales report should be viewed as bearish for wheat and neutral for soybeans, corn and milo

OMAHA (DTN) -- This week's export sales report should be viewed as bearish for wheat and neutral for soybeans, corn and milo, according to DTN Analyst Todd Hultman.Weekly export sales of corn totaled 58.5 million bushels (mb) (1,486,700 metric tons) as of June 21 with 33.5 mb (849,900 mt) for the 2017-18 season. Total shipments plus outstanding sales in 2017-18 are now 2.254 bb, 3% more than the previous marketing year. Weekly export shipments of 58.3 mb put total marketing year shipments down 6% from a year ago. Thursday's report is neutral for corn, Hultman said.Weekly export sales of soybeans totaled 36.8 mb (1,000,800 mt) with 13.2 mb (358,500 mt) for the 2017-18 marketing year. Total shipments plus outstanding sales are now 2.087 bb, 4% less than a year ago. Weekly export shipments of 18.4 mb put total marketing year shipments down 7% from last year's total. Thursday's report is neutral for soybeans, Hultman said.Weekly export sales for all wheat totaled 20.7 mb (563,700 mt), all for the new 2018-19 season. Total shipments plus outstanding sales of 204 mb are 31% less than a year ago. Weekly wheat shipments of 13.1 mb put total shipments down 50% in 2018-19 from the previous year. Thursday's report remains bearish for wheat, Hultman said.Weekly export sales of grain sorghum (milo) showed no new export sales for 2017-18. Total shipments plus outstanding sales of 203 mb are up 16% from a year ago. No weekly export shipments either put the 2017-18 total up 19% from a year ago.  

Perdue Reveals Target Date for Tariff-Related Farmer Aid

USDA Secretary Sonny Perdue told reporters at the United Fresh trade show in Chicago that he hopes to have a plan for shielding farmers from tariff-related losses in place before the fall harvest.He later clarified his position in an interview with the Chicago Tribune, saying he’s “probably” going to stick with a Labor Day deadline for making decisions on farm aid.He stressed all parties involved would like to see some sort of resolution by July 7, the day after the U.S. and China will implement new rounds of tariffs.In other remarks in Chicago, Perdue said farmers know China has "not been a fair player." He added, "We will not allow agriculture producers to bear the brunt of China's retaliation as we defend our own interests as a nation.Perdue also confirmed the Commodity Credit Corp (CCC) could be one of the major tools used in any plan to compensate farmers.

Trump Urged to Suspend Mexican Steel Tariffs Slamming US Dairy

President Donald Trump should suspend the steel and aluminum tariffs on Mexican products during North American Free Trade Agreement (NAFTA) negotiations, as U.S. dairy exporters fear Mexico’s new tariffs will swing the door wide open for EU dairy products, said more than 60 dairy companies and trade groups in a letter to the White House this week.In retaliation for Trump’s steel and aluminum tariffs, Mexico added new tariffs on American-made cheeses and other products, which are expected to reach as high as 25%. Before now, U.S. dairy processors enjoyed duty-free access to the Mexican market under the trilateral NAFTA.While the companies and organizations praised the president’s tactics in calling attention to market roadblocks for U.S. dairy products in Canada, Mexico is a very different situation.“Your insistence that Canada, for example, open its closed market to U.S. dairy and halt market-distorting pricing schemes is both commendable and refreshing,” they said. ‘Unlike Canada, Mexico has long been a model for open dairy trade with the United States. Through investment and cooperation with Mexico, we have succeeded in becoming the country’s biggest foreign dairy supplier, with cheese purchases last year alone totaling nearly $400 million,” farmers and cheese makers said in the June 26 letter to Trump.But the U.S. market in Mexico is in “grave jeopardy.” And, “our competitors in the European Union will use this opportunity in the wake of their recently concluded Free Trade Agreement with Mexico to gain market share,” said U.S. dairy companies

Washington Insider: Administration Internal Trade Fight

Well, the policy tensions in Washington are near the max as almost everyone awaits the administration’s next steps on trade and investment policies. On Wednesday, tea-leaf watchers at the New York Times said that President Donald Trump “signaled” that he may accept a “softer” plan for new investment restrictions on China.However, the Times also signaled that this may not be not final and that the President could ultimately decide to move ahead with the tough bans on Chinese investment in American companies that he has been threatening.The administration, which has already threatened China with tariffs on as much as $450 billion worth of its products, had promised to “outline” proposed restrictions on Chinese investment soon.Details are expected by Saturday. The constraints on sensitive American technologies could have a significant impact on United States companies since they could limit the ability of American companies to sell a range of products to China, the Times said.Now, however, the Times says “people familiar with the discussions are saying that, at least on the issue of Chinese investment, the White House is now leaning toward endorsing a current effort in Congress to tighten rules on the Committee on Foreign Investment in the United States (CFIUS) based on a comment the President made Tuesday.In a Wednesday response, China’s Commerce Ministry said that officials “are playing close attention to it and will assess the potential impact on Chinese companies.” The Times noted that a congressional overhaul to CFIUS would include a list of “countries of special concern” that allow it to review investments from those nations, but stops short of specifically naming China as the target.If you think this is complicated, you would be right. The meat of the Times story is the interpretation that the President’s decision would be a victory for the administration’s “more moderate economic advisers, including Steven Mnuchin, the Treasury Secretary, who has tried to de-escalate trade tensions with China.Mnuchin has argued internally that congressional efforts to strengthen current security checks were both sufficient to guard against threats to American technology and targeted enough to avoid disrupting the American economy, the Times said.Mnuchin tried earlier to prevent the administration from employing aggressive measures against China, including an effort to use the International Emergency Economic Powers Act, which would allow the administration to take broad action against China by declaring a national emergency. Mike Pompeo, the secretary of state, had recently joined Mnuchin in his arguments, the Times said.Trump had campaigned on punishing China over its trade practices and has been pushed in that direction by his hardline trade advisers, Peter Navarro and Robert Lighthizer. At the same time, Mnuchin, a former Goldman Sachs executive, has counseled Trump against pursuing restrictions that would target China specifically, warning that could create unnecessary diplomatic and legal complications.The Times says that in late May, Mnuchin helped orchestrate a meeting among the president, top White House advisers and Republican lawmakers, in which he appealed to lawmakers to help make the case that legislation could be a more targeted way to police Chinese investment. But Peter Navarro and Robert Lighthizer, the United States trade representative, who were also at the meeting, objected to that approach, and at that time, the president overruled Mnuchin, saying he supported the congressional legislation but that it alone was not enough.Congress is expected to vote on the legislation as part of a defense-spending bill this year. On Tuesday, the House passed its version of the bill, which would grant CFIUS broader authority to block investments over national security concerns.In recent weeks, Mnuchin had maintained a low profile as the White House proposed tough trade measures that he had opposed. But on Monday, amid growing fears that the Trump trade wars could hurt American companies, Mnuchin re-emerged.At least partly in response to the press reports Secretary fired off a Twitter post “on behalf of” Trump calling the stories “fake news” and hinting that Treasury would support a broader proposal to protect American intellectual property that would not be “specific to China, but to all countries that are trying to steal our technology.”Then on Wednesday, the White House moved forward with plans to limit Chinese investments but chose a less a confrontational approach, deciding against invoking a rarely used law reserved for economic emergencies. The President embraced the legislation under consideration in Congress to strengthen the CFIUS, so it can prevent companies from violating intellectual-property rights of American companies.Bloomberg reported that Wednesday’s announcement tamped down fears of an abrupt escalation in the trade war between the US and China that had roiled financial markets on Monday. Stocks in the U.S. and Europe rallied after the announcement.So, we will see. This “soft news” could cool down some of the growing disputes — or, it could turn out to be yet another bum lead. Certainly, these are conflicts producers should watch closely as they evolve, Washington Insider believes. 

JUNE 1 GRAIN STOCKS

The importance of USDA's quarterly tallies of grain stocks cannot be overemphasized. They are the heart of fundamental analysis and the main check and balance on USDA's World Agricultural Supply and Demand Estimates (WASDE) estimates. Grain stocks reports have been known to shatter prior illusions of grain demand, and there is always a chance that will happen again Friday.Dow Jones' survey of analysts expects 5.26 billion bushels (bb) of U.S. corn stocks on June 1. If true, that means 11.68 bb of U.S. corn would have disappeared in the first three quarters of 2017-18, slightly less than 11.72 bb of disappearance a year ago. Because of this year's drought in Argentina and dry weather in Brazil, there is a chance that grain stocks will be lower than expected.For soybeans, the outlook is more bearish, thanks to last fall's record U.S. soybean harvest, Brazil's record harvest in early 2018 and China's success in avoiding U.S. soybean purchases while trade tensions are high. Dow Jones' survey is looking for 1.22 bb of U.S. soybeans on hand as of June 1, up from 966 million bushels (mb) from a year ago.One thing to keep in mind Friday is that even if USDA's count of soybean stocks comes in less than expected, buyers may still be reluctant to respond ahead of next Friday, July 6. On that day, China is set to enact a 25% tariff on U.S. soybeans. Because soybean prices have already suffered sharp declines in June, a bearish report on Friday could also see a muted price impact.June 1 wheat stocks happen to mark the end of the 2017-18 season for wheat and are expected to total 1.10 bb, according to Dow Jones, slightly above the 1.08 bb predicted in the June WASDE report. It is difficult to argue that wheat stocks will be lower than expected when U.S. exports were such a struggle in 2017-18. If there is good, but not necessarily bullish news for wheat prices, Friday's report will probably not have much price impact, as traders are now more concerned about the new-crop season.The anticipation of Friday's USDA reports will likely feel familiar to traders with dry mouths and tight guts in the minutes leading up to 11 a.m. CDT. However, the context of this year's reports are different with corn looking at the anticipation of lower world corn supplies and soybeans wondering if or when the world's largest soybean buyer will return anytime soon. Friday's reports will offer important clues for where prices go from here, but we also need to remember how far prices have already fallen. 

Senate Farm Bill to Include Grassley Payment Limits

The Senate farm bill now contains 18 additional amendments, including Iowa Senator Chuck Grassley’s payment limits amendment. Grassley was the lone vote against the bill when it passed through committee because it did not contain his amendment. The change would “amend actively engaged in farming requirements by allowing only one person or legal entity per farming operation to be considered ‘actively engaged’ in farming based on active personal management.” Grassley said earlier this week that he had the votes on the Senate Agriculture Committee to get the amendment approved at the markup of the bill, but ran into a last-minute procedural problem that prevented him from offering it, according to the Hagstrom Report. The amendment is one of 18 attached to the farm bill and announced Wednesday by Senate Agriculture Committee Chairman Pat Roberts in an effort to expedite the passage of the bill.

Perdue Signals Aid Plan Announcement Possible Around Labor Day

Agriculture Secretary Sonny Perdue in Chicago this week says he is hopeful his aid program for farmers will be released by Labor Day and the harvest season. Perdue spoke at the United Fresh event Tuesday and told the Chicago Tribune that while farmers want "trade, not aid," the Department of Agriculture is following the trade war on a "weekly basis,” and assessing the impacts of trade disputes while having a plan ready to assist farmers. Perdue continues to hold off on announcing those plans, but conceded he has "probably" given himself a "Labor Day deadline" with the corn and soybean harvest looming. Perdue says he and USDA see the trade environment as "temporary." A 25 percent tariff on U.S. soybeans as part of the trade dispute will take effect next week. While there may not be enough export capacity globally for China to stop all U.S. soybean purchases completely, Brazil's production and exports are growing, and China is seeking alternatives to U.S. agricultural products.

Canada Announces Pork Sector Investment

Amid global trade uncertainty and U.S. pork facing tariffs, Canada is investing to expand its swine sector. While the two moves are not directly related, Canada Agriculture and Agri-Food Minister Lawrence MacAulay just announced a federal investment of up to (Canadian) $12.7 million to Swine Innovation Porc, a non-profit corporation that facilitates research in the Canadian swine sector. The non-profit will contribute up to an additional $5.8 million to the project. The investments will be used to examine new ways of feeding piglets that could help provide immunity from diseases; determine best methods for the classification of pork based on quality attributes; and, examine long-distance transport effects on the health and welfare of early weaned pigs. Canada is the 9th largest pork producer in the world, representing approximately two percent of global production. In 2016, Canada exported approximately 70 percent of overall Canadian hog production, with a value of $3.8 billion.

Oil Industry: EPA Makes Right Call on Not Reallocating Waived Volumes

The American Petroleum Institute says the Environmental Protection Agency “made the right call” to not reallocate volumes of biofuels displaced by hardship waivers from the Renewable Fuel Standard. The EPA volume proposal this week included a small overall increase, but kept conventional ethanol at 15 billion gallons for 2019. API made the comments while at the same time calling the RFS an example of “a broken government program.” The proposal by the EPA followed a Reuters report that the EPA “consistently ignored” direction from the Department of Energy to restrict or reject the hardship waivers. Growth Energy CEO Emily Skor says the waivers are “at odds” with the Department of Agriculture, President Trump, and now the Department of Energy. The ethanol industry contends the waivers are destructing demand, and the recent volume proposal for convention ethanol “isn’t a real number” because the EPA won’t make up lost volumes or stop the waivers.

NC Governor Vetoes Bill That Would Protect Hog Farms from Lawsuits

North Carolina Governor Roy Cooper has vetoed a bill that would provide protection to hog farms from lawsuits. The bill passed by state lawmakers aimed to protect the ability of farms to “operate as surrounding development encroaches” and protect farms from” frivolous nuisance lawsuits.” Governor Cooper stated following his veto: “While agriculture is vital to North Carolina’s economy, so property rights are vital to people’s homes and other businesses.” Further, Cooper stated that giving one industry special treatment at the expense of its neighbors is unfair. Lawmakers in the state passed the bill after $50 million in damages were awarded to neighbors of a hog operation in the state. A federal judge later slashes the award to $2.5 million. Other similar nuisance lawsuits in the state are expected to follow, with one lawsuit already in progress.

Women in Agribusiness Now Accepting Award Nominees

The Women in Agribusiness Summit is seeking award nominations for the Women in Agribusiness Demeter Award of Excellence. Now in its fifth year, the award is bestowed upon “some of the most innovative, action-oriented movers and shakers in the agribusiness sector.” Nominations must have a minimum of ten years of experience in agriculture, be a positive example and break down barriers for others and exemplify professionalism. The recipient of the award, named after Demeter, the goddess of the harvest from ancient Greek mythology, will receive her award on stage at the 2018 Women in Agribusiness Summit in Denver, September 24-26th. There is no limit to the number of entries, and self-nominations will be accepted as well. Entry forms and guidelines for submissions are available online at www.womeninag.com. Nominations will be accepted through Friday, July 20th, 2018. 

Cattle feeders have now experienced a month’s worth of losses

Cattle feeders have now experienced a month’s worth of losses, while packer margins hover at the $300 per head level. Feedyard closeouts revealed a $17 loss on every animal sold last week, a $33 per head improvement over the previous week, according to the Sterling Beef Profit Tracker.Cash prices for fed cattle declined $2 per cwt last week, and the beef cutout declined $4 per cwt, closing at $215.59. The cost of finishing a steer last week was calculated at $1,531, which is $116 higher than the $1,415 a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.A year ago cattle feeders were earning $273 per head. Feeder cattle represent 73% of the cost of finishing a steer compared with 72% a year ago.Farrow-to-finish pork producers saw their margins decline $1 to $47 per head. Lean carcass prices traded at $84.05 per cwt., a $0.78 per cwt. improvement from the previous week. A year ago pork producers earned an average of $61 per head. Pork packer margins averaged a loss of $6 per head last week.Cash prices for fed cattle are $12 per cwt. lower than the same week a year ago. Lean hog prices are about $5 per cwt. lower than last year.Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2018 will average $128 per cow. That would be $30 per head less than the estimated average profit of $158 for 2017. Estimated average cow-calf margins were $173 in 2016, and $438 per cow in 2015.For feedyards, Nalivka projects an average profit of $51 per head in 2018, which would be $185 less than the average of $236 per head in 2017. Nalivka expects packer margins to average about $147 per head in 2018, up from $120 in 2017.For farrow-to-finish pork producers, Nalivka projects 2018 profit margins will average a loss of $1.72 per head, compared to profits of $21 in 2017. Pork packers are projected to earn $13 per head in 2018, down from $25 profit per head in 2017. 

EPA Unveils RFS Proposals

EPA Tuesday released its proposed levels for 2019 biofuels and 2020 biodiesel under the Renewable Fuel Standard (RFS), with the proposed levels matching levels that had been widely expected since last week.For 2019, EPA is proposing “Conventional” renewable fuel volumes, primarily met by corn ethanol, would be maintained at the implied 15-billion gallon target set by Congress. The advanced biofuel standard for 2019 would be increased by almost 600 million gallons over the 2018 standard. The cellulosic biofuel standard for 2019 would be increased by almost 100 million gallons over the 2018 standard.For 2020, the biomass-based diesel standard would be increased by 330 million gallons as compared to the standard for 2019.Absent from the plan is any proposals relative to reallocating obligations for small refiners. Those totaled around 1.6 billion gallons for 2017 and have been the subject of ire among biofuel backers.

Biodiesel Board, Others Push for Renewal, Extension of Biodiesel Blender Credit

A diverse group has come out in favor of renewing and extending the $1-per-gallon biodiesel blender credit for 2018 and 2019, and the groups are pushing for a long-term solution, "including a permanent tax incentive at a level that will continue to foster growth in the domestic biodiesel fuel market."The groups argue the uncertainty by letting the credit expire periodically have stymied investment by the industry. Signing the letter to leaders of the House and Senate tax-writing committees were the Advanced Biofuels Association, American Trucking Associations, National Association of Convenience Stores, National Biodiesel Board, National Renderers Association, NATSO (Representing America's Travel Centers and Truckstops), New England Fuels Institute, Petroleum Marketers Association of America and the Society of Independent Gasoline Marketers of America.However, efforts previously to get a permanent extension have not met with success and House Ways & Means Chairman Kevin Brady, R-Texas, has previously been against the annual parade of tax extenders.

Washington Insider: Tariffs and Corporate Trade Fight

The New York Times this week is reporting that while corporate America has largely avoided “sticking its head over the parapet in the trade war,” but sees that position increasingly threatened as the bellicose trade rhetoric transforms into action.Harley-Davidson is a case in point, the Times said. On Monday, it announced it was planning to shift some production out of the United States to lessen the cost of tariffs that the European Union imposed in response to those put in place by the Trump administration.Harley-Davidson’s move reveals the uncomfortable choices companies face as they navigate escalating trade tensions. The company, by making more motorcycles beyond its United States factories, is already drawing increased criticism from the administration and US advocates of protectionism. But if Harley-Davidson does not adapt to the rising trade barriers, it stands to sell fewer motorcycles, which could harm its profits, the Times said.So far, large companies have mostly left it to their trade groups to speak out against Trump’s trade policies. But when financial pain grows and increasingly threatens companies’ bottom line, public companies say they are obliged to publicly react. Almost by default, then, they are forced to enter the fight. And as more companies react the way Harley-Davidson did, the debate over trade wars will focus on what the Times calls the trade fight’s “nitty-gritty.”The European Union last week raised tariffs on Harley-Davidson motorcycles to 31% from 6%. The company said the increase would add $2,200 on average to the cost of a motorcycle exported to Europe from the United States. Harley-Davidson said it would not raise the suggested prices of its motorcycles to cover the cost of the tariffs. It expects, at least for a little while, to bear the additional expense of the tariffs itself, which would cost the company an estimated $90 million to $100 million a year.However, over the longer term, Harley-Davidson, based in Milwaukee, says it will make more motorcycles in countries that are not subject to the tariffs. That plan could take nine to 18 months to put into effect, the company said.A year ago, Trump lauded the firm for manufacturing in the United States. “We’re proud of you! Made in America, Harley-Davidson,” he said, when executives from the company drove motorcycles onto the White House lawn.The firm’s negative corporate announcements bring a jarring specificity to trade wars that can spread through financial markets and the wider economy, Bloomberg said. Harley-Davidson’s stock was down over 7% on Monday. The Standard & Poor’s 500-stock index was down 1.8%. The benchmark is now only up 1.1% since the end of 2017 and down 5.9% from its all-time high.As markets appeared to weaken, Bloomberg speculated that the trade war may be weakening the “Trump rally.” It raises the question of how many more Harley-Davidsons there are on the stock market.In response, the President turned on an iconic American company he once embraced, accusing Harley-Davidson Inc. of using new tariffs on trade as cover to shift some production abroad."A Harley-Davidson should never be built in another country - never!" Trump tweeted Tuesday. "Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end - they surrendered, they quit! The Aura will be gone and they will be taxed like never before!"The high-profile spat pits the president against one of the best-known manufacturers in Wisconsin, a state of high political importance to Republicans. Trump won the state’s 10 electoral votes by a narrow margin of just over 22,000 votes in 2016, and has repeatedly focused his attention on bolstering the state’s economy while in office, Bloomberg said.The early-morning missive from the president marked the second consecutive day Trump took aim at the motorcycle maker, after the company said in an SEC filing on Monday that tariffs enacted by the European Union in response to Trump’s penalties on imported steel and aluminum would add as much as $100 million a year to its costs.Harley-Davidson’s headquarters are in Milwaukee, and on Monday the office of House Speaker Paul Ryan, a Wisconsin Republican who has opposed Trump’s move to impose tariffs, said the company’s announcement was evidence of the detrimental effect of the president’s trade policy.“This is further proof of the harm from unilateral tariffs,” AshLee Strong, a Ryan spokeswoman, said Monday. “The best way to help American workers, consumers, and manufacturers is to open new markets for them, not to raise barriers to our own market.”So, we will see. Part of the administration staff embraces protectionism, but part does not. How the administration interprets moves like the one by Harley Davidson may yet affect the administrations basic policies — or, they may not, depending on how much pushback they receive from the economy including how much pushback comes from threats to well established ag markets, Washington Insider believes.

Senate Farm Bill Making Progress

The Senate early this week showed large support for the farm bill, or at least debate on the bill. The procedural cloture vote Monday passed easily, 89-3. Senate Majority Leader Mitch McConnell says the chamber has the opportunity to finalize this bill this week. Senate Agriculture Committee Chairman Pat Roberts spoke on the Senate floor Tuesday, calling the legislation “the best bill possible under these circumstances.” He says the goal of the farm bill is to provide agriculture “certainty and predictability during these very difficult times,” referring to the depressed farm economy. The bill is expected to soon enter the amendment process on the Senate Floor. Roberts will allow consideration of Senator Chuck Grassley’s farm payment limits amendment. The lack of the amendment in the committee-passed bill prompted Grassley to be the lone vote against the legislation at the time.

EPA Proposes Increase in RVO Announcement

The Environmental Protection Agency is proposing an increase in the total renewable fuel volume to 19.88 billion gallons, up from the 19.29 billion expected gallons. However, biofuels groups say the proposal falls short of damage done to the Renewable Fuel Standard from hardship waivers granted to refiners. The proposed conventional biofuel amount of 15 billion gallons maintains the level set for 2018. The proposal also calls for 4.88 billion gallons of advanced biofuel, including 381 million gallons of cellulosic biofuel and 2.43 billion gallons of biodiesel for 2020. The National Corn Growers Association says: “what’s not included in EPA’s proposed rule says more than what’s included.” Growth Energy CEO Emily Skor says the conventional biofuel amount from ethanol, “isn’t a real number we can count on.” Skor says by neglecting to reallocate gallons lost to waivers, the EPA is “doubling down” on another year of demand destruction. The National Biodiesel Board says the 2.43 billion gallons of biodiesel for 2020 sends a “hopeful signal,” but added the hardship waivers undercut prior year volumes and could negatively impact future standards.

Trade Promotion Authority to Auto-Renew

Trade Promotion Authority will auto-renew at the end of this month due to no congressional action. Originally authorized by Congress during the Obama administration for the advancement of the Trans-Pacific Partnership, TPA will auto-renew for another three years. The renewal comes due to the inaction by the House and Senate during a three-month window to pass a resolution of disapproval to deny the extension, according to Politico. The U.S. Trade Representative's office describes Trade Promotion Authority as a legislative procedure that spells out detailed oversight for trade negotiations. The policy allows, or perhaps restricts, Congress to a simple up or down vote, without amendment, regarding the approval of trade agreements. Most recently passed in 2015, TPA was favored by a majority of agriculture groups which supported the Trans-Pacific Partnership.

China Dropping Tariffs on Feed Grains from Asian Countries

China is dropping tariffs on feed ingredients from five Asian countries as it seeks supplies that do not originate in the United States. The ongoing trade war between the U.S. and China is bringing further tariffs on U.S. soybeans and coproducts imported to China, as retaliation on U.S. tariffs implemented on China. Thus, China is seeking cheaper soybeans, soymeal, soybean cake, rapeseed and fishmeal originating from Bangladesh, India, Laos, South Korea and Sri Lanka starting July first. A market analyst from Shanghai told Reuters the move "demonstrates the government's attitude that we will import from other countries." While China had already planned to cut the tariffs since March of this year, as part of the Asia-Pacific Trade Agreement signed in Thailand last January, the move is still seen as a step to reduce China’s dependence on U.S. soybeans amid the ongoing trade war.

Brazil Soybean Exports Expected to Pass U.S.

A forecast by the Department of Agriculture shows an increase in production could drive Brazil to pass the U.S. in soybean exports. Brazil is already the leading global producers of soybeans, and the second-largest exporter of the crop. USDA says Brazil’s soybean output is currently forecasted to exceed that of the United States by the 2018/19 marketing year. The milestone would represent a 22 percent increase in production over the last three years for Brazil. Almost all the increased production has made its way to the export market,  according to USDA, which has risen 34 percent over the same time. In addition to significant growth in sales to China, Iran and Russia, domestic conditions in 2018 have also driven up exports. In May, Brazil’s soybean shipments reached a record high, despite a trucker strike in the nation and stalled deliveries to ports.

USDA Taking Comments on Product of USA Label

The Department of Agriculture is accepting public comment on a policy that allows foreign beef to be labeled as “Product of USA” if inspected in the United States. The comment period opened last week following a petition by the American Grassfed Association and the Organization for Competitive Markets. The petition demands the Food Safety Inspection Service policy be changed to ensure only U.S. domestic meat products can be labeled “Product of USA.” The groups allege the current policy allows food companies to “skirt the federal law and regulations governing labeling and leads to violations of FSIS’s own policies and regulations that clearly mandate truthfulness in labeling.” The Petition refers to research that says U.S. consumers want to know where their food comes from and consumers place a higher financial value on food that is local, regional and from the United States. The public comment period closes in mid-August. 

USDA will consider a petition calling for a change in policy in the way the phrase “product of USA” can be used

USDA’s Food Safety and Inspection Service will consider a petition calling for a change in policy in the way the phrase “product of USA” can be used on the labels of meat and poultry processed in the U.S., even if the meat itself is imported, the agency said in a letter posted on its website.To that end, it is asking for public and stakeholder comments through the regulations.gov website, until August 17.The petition, submitted by the Organization for Competitive Markets and the American Grassfed Association, specifically targets grass-fed beef. About 75 to 80 percent of these products sold in the United States are of meat imported from Australia and South America, among other countries. The overall beef market in the United States is about 9 percent imported meat.“Hit hardest by misbranding of U.S. meat products are those U.S. producers who have been transitioning their operations to grassfed beef. This market opportunity has been the one bright spot in U.S. cattle production with sales nearly doubling annually,” the petition says. 

Prosecutors in Brazil on Monday charged JBS SA former Chairman and two others with corruption

Federal prosecutors in Brazil on Monday charged JBS SA former Chairman Joesley Batista, and two others with corruption.The charges were filed against Batista, Francisco Assis a former JBS executive, and Marcello Miller, a former federal prosecutor, before a federal court in Brasilia.Batista and Assis had been exempted from prosecution for confessing to bribery and agreeing to cooperate with authorities in a plea deal signed last year. The Brazilian Supreme Court is deciding whether to annul the pleaLawyers for Batista and Assis said in a statement their clients were innocent and the charges unfounded.The charges, which are under seal, accuse Miller of being paid 700,000 reais ($185,415) by Batista to help him and Assis reach plea deals while Miller was still a federal prosecutor.The testimony of Batista and other JBS executives included allegations that they bribed nearly 2,000 politicians at all levels of government in the past decade - including President Michel Temer.Temer faced corruption charges, but they were blocked from going to trial by Brazil’s Congress late last year. 

Senate Easily Approves Start of Farm Bill Debate

The Senate Monday evening voted 89-3 to limit debate on proceeding to the House-passed farm bill, which will serve as the legislative vehicle for the Senate 2018 farm bill.The five-year bill passed the House on a 213-211 vote June 21. The Senate bill cleared the ag panel June 13 on a 20-1 vote, a clear and now unusual bipartisan measure.The Congressional Budget Office (CBO) estimates that the Senate bill would cost $428 billion in the first five years and $867 billion over CBO’s 10-year scoring window of fiscal 2019 through 2028. The House farm bill would cost about the same for both time periods.

Washington Insider: Trade Fight’s Danger Signs

The pushback against trade policies that threaten healthy overseas markets appears to be growing, although the Congress appears to have backed away from a direct confrontation with the administration. However, Bloomberg is reporting this week that the main statistic used to support the growing trade fight is both partial and limited, and that the administration’s focus on trade in goods ignores recent totals in trade benefits.”Bloomberg says that while the administration “has called the surplus the European Union generates trading goods with the U.S. “unfair” and has used it to stir up conflict with the 28-nation bloc, when trade in services and other payments such as dividends and remittances, the U.S. has a 12 billion-euro ($14 billion) surplus.Perhaps equally significantly, Bloomberg also says that the escalating trade battle between the U.S. and the rest of the world “is raising the risk of a meaningful slowing in an otherwise vibrant American economy.”While the tariffs already in place and set to be implemented will barely dent U.S. growth, economists say, “the panoply of additional measures being considered would take a perceptible bite out of gross domestic product if they go ahead.”“It’s going to be more noticeably painful,” said Peter Hooper, chief economist at Deutsche Bank AG in New York told Bloomberg.Hooper, who expects the economy to expand 3% this year, said the steps already taken or in the works would clip just 0.1 percentage point off GDP growth. “However, when the administration threats to slap a 10% tariff on an additional $200 billion of Chinese imports and a 20% levy on car shipments from the European Union, then the impact grows to 0.3 point to 0.4 point,” he said. And the fallout could even be greater if heightened tensions begin to infect consumer, business and investor confidence.“It really dings the economy but certainly doesn’t undermine it,” said Mark Zandi, chief economist at Moody’s Analytics Inc., who agreed with Hooper’s estimate of a roughly 0.3 percentage point impact from the accumulated trade actions.Even though markets have taken the contretemps largely in stride, U.S. equity futures followed Asian shares lower recently after an escalation of tensions. As a result, central bankers are taking notice, Bloomberg says. Federal Reserve Chairman Jerome Powell said on June 20 that officials are beginning to hear that companies are postponing investment and hiring due to uncertainty about what comes next.“Changes in trade policy could cause us to have to question the outlook,” he said during a panel discussion at a European Central Bank conference in Portugal.The increasing tariff strife poses particular problems for the central bank because it’s likely to both raise inflation and depress growth.Still, administration officials have played down expected economic impacts of the trade battle. “Anyone who thinks the economy is being wrecked doesn’t know what they’re talking about,” Commerce Secretary Wilbur Ross told Bloomberg recently.The worsening trade friction comes at a time when the U.S. economy is, in the words of Powell, “performing very well,” as tax cuts power both consumer and company spending that could be the strongest in almost four years.The tariffs though could have an impact on activity going forward by raising costs for households and businesses. “It’s starting to chip away at the tax cut,” said Nariman Behravesh, chief economist at IHS Markit. “If they keep down this path, all the positive effects of the tax cut will be gone.”“The U.S. can afford a trade war relatively more than Europe, China” and other countries because its economy is more domestically driven, said Christian Keller, head of economic research for Barclays Plc.Exports amounted to almost 12% of U.S. GDP in 2016, compared with close to 20% for China and 43% for the EU, World Bank data show.While China has policy levers it can pull to try to offset the impact from trade struggles, Europe is more vulnerable, Zandi said. The ECB’s benchmark interest rate is already at zero.Of course, Europe’s troubles could redound back on the U.S. if the euro weakens against the dollar, as seems likely, he said.It could be a “tipping point” for the global economy if the administration goes ahead with tariffs on $200 billion more of Chinese goods and a 25% tax on all car imports, said Ellen Zentner, chief U.S. economist for Morgan Stanley.So, we will see. Especially difficult to explain will be negative impacts on important ag markets that have recently been growing, in spite of the Commerce Secretary’s optimism. Producers of a number of commodities likely are more worried about those specific markets than about impacts on overall performance of the economy—trends that producers should watch closely as policy trends materialize, Washington Insider believes. 

Perdue: Trump Will Protect Farmers

Agriculture Secretary Sonny Perdue says President Donald Trump will protect U.S. farmers from trade retaliations. In a USA Today editorial, Perdue says if China does not soon mend its ways, “we will quickly begin fulfilling our promise to support producers.” Perdue says Trump knows U.S. farmers feed, fuel and clothe the world, and that he will "not allow U.S. agriculture to bear the brunt" of China's retaliations. China is retaliating against the Trump trade war by targeting U.S. agricultural products, such as soybeans, and many others. The Department of Agriculture has yet to release its plan to support farmers through a trade war. Perdue says it’s a simple case of ‘not releasing your plan when the opposing team is watching.’ However, agriculture is eager to see what’s in store as trade tensions rise. Meanwhile, Perdue says, if Trump is successful, “farmers will reap the benefits.”

EU, China, Working to Strengthen Trade Ties

The European Union is working to strengthen trade ties with China as the U.S. and China are embattled in a trade war. Repercussions of the trade war are being felt throughout U.S. agriculture, as the retaliatory tariffs from China will soon go into effect. Meanwhile, the EU is taking full advantage of the situation, and engaging with China to further develop trade. A European Commission news release says both sides agreed to exchange market access offers at an upcoming summit to give political motivation to an ambitious EU-China Comprehensive Agreement on Investment. China and the EU say the U.S. unilateral approach comes at the risk of a global recession and vowed for a multilateral approach to counteract the U.S. trade agenda, and to uphold a rules-based trading system through the World Trade Organization.

Uncertainty Brewing from RFS Target Announcement Delay

Uncertainty remains amid the Renewable Fuel Standard as the Trump Administration backed away from a planned announcement last week. The proposed volume obligation requirements, or biofuels targets, are still expected any day, though oil industry opposition apparently led the Trump administration to temporarily abandon the proposal, according to Bloomberg News. The proposal is estimated to require 19.88 billion gallons of biofuels to be used in 2019, a 3.1 percent increase over 2018 requirements. With a quota for 4.88 billion gallons of advanced biofuels, that would mean the EPA is proposing to require 15 billion gallons of conventional renewable fuels, including corn-based ethanol, the same as required in 2018 and the maximum that can be compelled under federal law. American Fuel and Petrochemical Manufacturers President Chet Thompson called the proposal a “back-room deal,” in a statement opposing the alleged proposal. The EPA apparently was planning to make up volumes lost through hardship waivers granted to refiners under the RFS. The oil industry is vowing to fight the proposal if it moves forward.  

USDA Assisting Cotton Growers with Safety Net Changes

The Department of Agriculture is helping cotton farmers prepare for new safety net coverage. The Farm Service Agency is sending acreage history and yield reports to agricultural producers with generic base acres covered by the Agriculture Risk Coverage and Price Loss Coverage programs. USDA says the data will help producers decide the best options for how to allocate generic base acres, given the addition of seed cotton as a covered commodity in the programs. The Bipartisan Budget Act of 2018 amended the 2014 Farm Bill, adding seed cotton as a covered commodity under the ARC and PLC programs. This week, FSA will start sending producers information on current generic base acres, yields and 2008-2012 planting history. FSA administrator Richard Fordyce says the data will help farmers “make critical decisions” about the USDA programs. All producers electing to participate in either the ARC or PLC program will be required to make a one-time, unanimous and irrevocable election, choosing between ARC and PLC for the 2018 crop year for seed cotton only.*

Tyson, Merck Fund Poultry Research Facility

Merck Animal Health and Tyson Foods are providing funding to Texas A&M University’s College of Agriculture and Life Sciences’ Poultry Science department to build a new research facility. Meat industry publication Meatingplace reports the two companies have provided a $500,000 gift for the laboratory where scientists will focus on solving intestinal health issues in poultry. A University spokesperson says the gift will help serve the need for research and evaluation to increase bird health and welfare. Dr. Patrick Stover, vice chancellor for the agriculture and life sciences department at the University, says the laboratory will "facilitate scientific discovery with direct industry application in support of student education." The University noted that U.S. consumers spend roughly $85 billion a year on poultry.

Canada Reopens Penitentiary Farming Operations

Canada will reopen its penitentiary farms in Kingston, Ontario. The Canadian government announced the farm operation will include both dairy cows and dairy goats. A phased approach, slated to begin in Fiscal Year 2018-19, will be adopted to implement new models for penitentiary farm operations at two locations, with full implementation expected over the course of the next five years. Canada says the reopening of the farms represents a renewal of the penitentiary farms model that includes additional technical skills certifications and community partnerships. A Correctional Service official says the plan will “further develop meaningful employment opportunities to help offenders successfully reintegrate into society." Offenders will be involved in building and renovating necessary infrastructure as well as working to repair and rebuild farmland in the coming months to prepare for crops. 

Supreme Court declines to hear the appeals of two Indian tribes to jurisdiction over 1.48 million acres of Wyoming

DENVER, CO.  The Supreme Court of the United States today declined to hear the appeals of two Indian tribes to the Tenth Circuit’s December of 2017 opinion rejecting the tribes’ claims to jurisdiction over 1.48 million acres of Wyoming.  The Wyoming Farm Bureau Federation, represented by Mountain States Legal Foundation, had challenged the Environmental Protection Agency’s (EPA’s) 2013 decision to grant the Northern Arapahoe Tribe and the Eastern Shoshone Tribe—of the Wind River Indian Reservation— jurisdiction over large swaths of state and private land, including the town of Riverton.  Farm Bureau members who live, work, and own property in and near Riverton and who would be subject to tribal jurisdiction although they are not tribal members, argued the EPA’s order ignores more than one hundred years of actions by Congress, Wyoming, the Tribes, and various rulings by a host of federal and state courts.  In November of 2017, the U.S. Court of Appeals for the Tenth Circuit in Denver, ruled 2-1 against the EPA. The EPA, perhaps recognizing the wisdom of the Tenth Circuit’s decision, declined to sign onto the Tribes’ ill-fated petition to the Supreme Court.                "We are pleased and gratified that the Supreme Court declined to review this decision," said William Perry Pendley president of Mountain States Legal Foundation.  "Judge Tymkovich issued a thoughtful and  

Grilling for July 4th more affordable this year

A cookout of Americans’ favorite foods for the Fourth of July, including hot dogs, cheeseburgers, pork spare ribs, potato salad, baked beans, lemonade and chocolate milk, will cost slightly less this year, coming in at less than $6 per person, says the American Farm Bureau Federation. Farm Bureau’s informal survey reveals the average cost of a summer cookout for 10 people is $55.07, or $5.51 per person. The cost for the cookout is down slightly (less than 1 percent) from last year. “This is a very tough time for farmers and ranchers due to low prices across the board. It is appropriate that this very painful situation hitting farmers be reflected at the retail level as well,” said AFBF Director of Market Intelligence Dr. John Newton. “We are seeing record meat and dairy production in 2018 so that has also influenced retail prices and so, for consumers, this year’s Fourth of July cookout costs will be slightly less than last year’s.” AFBF’s summer cookout menu for 10 people consists of hot dogs and buns, cheeseburgers and buns, pork spare ribs, deli potato salad, baked beans, corn chips, lemonade, chocolate milk, ketchup, mustard and watermelon for dessert.

“Milk production in 2018 is projected at a record 218 billion pounds, contributing to lower retail milk prices,” Newton said. While fluid milk prices have declined, tighter stocks of American cheese contributed to slightly higher cheese prices, he added. 

Competition in the meat case continues to benefit consumers through lower retail prices, making grilling for July Fourth even more affordable for consumers this year, according to Newton. In Montana, prices were even lower than the national average for burgers, hot dogs, buns, deli potato salad and baked beans, but higher for pork ribs. Montana Farm Bureau Federation Shopper Janet Krob said, “While enjoying the affordable cookout, keep in mind that farmers and ranchers are seeing record low prices for the delicious and nutritious food they are producing. I hope everyone this summer appreciates the variety of food available in Montana this time of year.” A total of 96 Farm Bureau members in 28 states served as “volunteer shoppers,” checking retail prices for summer cookout foods at their local grocery stores for this informal survey.

The summer cookout survey is part of the Farm Bureau marketbasket series, which also includes the popular annual Thanksgiving Dinner Cost Survey and two additional surveys of common food staples Americans use to prepare meals at home. 

The year-to-year direction of the marketbasket survey tracks closely with the federal government’s Consumer Price Index report for food at home as both the index and the marketbasket remained relatively flat compared to year-ago levels. 

As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped. 

“Through the mid-1970s, farmers received about one-third of consumer food expenditures for food eaten at home and away from home. Today, farmers receive approximately 14.8 cents of every food marketing dollar, according to the Agriculture Department’s revised Food Dollar Series. However, after accounting for the costs of production, U.S. farmers net 7.8 cents per food dollar.” Newton said.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this $55.07 marketbasket would be $8.15.

AFBF is the nation’s largest general farm organization with member families in all 50 states and Puerto Rico. Learn more at http://facebook.com/AmericanFarmBureaufacebook.com/MontanaFarmBureau or follow @FarmBureau and @MTFarmBureau on Twitter. 

New U.S. Wheat Associates Officers Begin Terms at 2018 Annual Meeting

Seattle, WASHINGTON — The U.S. Wheat Associates (USW) Board of Directors seated new officers at its annual meeting June 24, 2018, in Seattle, Wash. USW is the export market development organization representing U.S. wheat farmers. 

USW officers for 2018/19 are: Chairman Chris Kolstad of Ledger, Mont.; Vice Chairman Doug Goyings of Paulding, Ohio; Secretary-Treasurer Darren Padget of Grass Valley, Ore.; and Past Chairman Mike Miller of Ritzville, Wash. USW officers were elected to these one-year positions at the February 2018 board of directors meeting in Washington, D.C. 

The directors also welcomed members of the Philippine Association of Flour Millers as special guests at their meeting. Executive Director Ricardo Pinca presented information about the potential threat from Turkish flour imports. Several years ago, the association proved to their government that Turkish companies were dumping flour into the Philippines that created a “material threat” to their business. That threat extended to U.S. wheat sales because Philippines millers import more than 95 percent of their commodity from the United States. Duties were imposed on Turkish flour but they will expire in 2019, so Pinca explained how USW and local millers can work together to fight the future risk of continued dumping. 

USW's next Board meeting will be held jointly with the National Association of Wheat Growers (NAWG) Oct. 29 to Nov. 2, 2018, in Tampa, Fla. 

Chris Kolstad is the fourth generation of his family to farm in Montana’s “Golden Triangle” region. He and his wife Vicki have four children, including their son Cary who is a partner in their operation. They grow hard red winter (HRW) wheat, dark northern spring wheat, durum, barley and dry peas. A commissioner of the Montana Wheat and Barley Committee, Kolstad has been a USW director since 2012. He is also a member of the Montana Grain Growers Association and Montana Farm Bureau. He is a regular blood donor and his community leadership includes past service on the local school board, in his family’s church and on the Montana Commission on Community Service. 

Darren Padget is a fourth-generation farmer in Oregon’s Sherman County, with a dryland wheat and summer fallow rotation currently producing registered and certified seed on 3,400 acres annually. Previously, Padget held positions on the Oregon Wheat Growers League board of directors and executive committee for seven years, serving as president in 2010. He chaired the NAWG Research and Technology Committee and served on the Mid-Columbia Producers board of directors, for which he was an officer for 10 years.

Doug Goyings’ family has been farming in northwestern Ohio since 1884. Goyings and his family grow soft red winter (SRW) and have hosted numerous trade teams on their farm. He has served in Ohio and national agricultural leadership positions for 37 years. Goyings has been a member of the USW board since 2009 and is a past chairman of the USW Long-Range Planning Committee. He serves as a director for the Ohio Small Grains Checkoff Board, is a past-president of his local Farm Bureau and has served as a director for the Ohio Veal Growers Inc., Creston Veal, Inc. and Paulding Landmark, Inc. 

Mike Miller is a fourth-generation farmer who operates a dryland wheat farm and grows multiple crops on a separate, irrigated farm in east central Washington. He has served on many local, state and national boards, and this is his seventh year as a USW director representing the Washington Grain Commission. Miller is also very active in supporting wheat research and development. He and his wife, Marci, have three children. 

USW’s mission is to develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service.  

House Vote on Second Immigration Plan Possible

The House Thursday rejected a plan by Rep. Bob Goodlatte, R-Va., on immigration and that prompted a delay on a vote on a second package. That delay has now moved the vote to this week after a closed-door meeting of House Republicans.Some conservatives complained that the compromise omitted a requirement that employers use the E-Verify system to check workers’ immigration status, while others lawmakers wanted reassurances on how the legislation addressed young immigrants brought to the country illegally as children, often called Dreamers. A provision in the compromise bill would also end the practice of separating adults and children crossing the border by detaining them together, allocating money for family detention facilities.The compromise bill would appropriate $23.4 billion for border security, including a wall and physical barriers along the southern border, and provide six years of renewable legal status to Dreamers. It would also end the diversity-visa lottery program and cut the family-based visa program.President Trump on Friday urged Republican lawmakers to "stop wasting their time on immigration" until after November's midterm elections, which he predicted will bring enough GOP members to Washington in a "Red Wave" to allow the party to pass legislation on its own. Some lawmakers have said Trump is jeopardizing efforts to pass legislation. House Majority Whip Steve Scalise, R-La., said, "Unfortunately, I think what the president was expressing is the frustration that Democrats have refused to engage in solving the problem."

Trump Administration Unveils Government Reorganization Plan

The White House released a 132-page plan that would make major changes in U.S. government agencies, including moving the Supplemental Nutrition Assistance Program (SNAP) out of USDA and into a reconfigured Department of Health and Human Services (HHS), which would be named the Department of Health and Public Welfare.It would also seek to move the food safety functions from USDA and FDA to one agency – the Federal Food Safety Agency. Plus, it would move some USDA housing programs to Housing and Urban Development (HUD) and move some functions of the Army Corps of Engineers to a civil works agency.However, most of the changes suggested in the report require congressional approval and indications are there is little appetite in Congress to make the kinds of changes the administration is proposing, giving the full plan extremely low odds of happening.

Washington Insider: The Fight for Steel Tariff Waivers

There is a new government policy scene these days, as the Trump administration decides who should and should not receive waivers from the new import tariffs, the New York Times said this weekend.The Times said there is a broad scramble underway to figure out what criteria will be applied and how the decisions will be made.While the administration granted seven companies the first set of exclusions from its metal tariffs this week it rejected requests from 11 other companies — but the main work remains to be done, as the Commerce Department is in the process of responding to the 20,000 applications that companies have filed for individual products.The Department announced last week that it had granted exclusions from the 25% steel tariffs to seven companies that requested them for 42 products. The companies included the razor maker Schick Manufacturing and Nachi America, which makes cutting tools, bearings and hydraulics.But the department denied 56 products, from companies that included Seneca Foods, a fruit and vegetable producer; Bekaert, a maker of steel wire; and Mills Products, a metal fabricator. Some businesses, such as Primrose Alloys, a metals trading company, and Wright & McGill, a maker of fishing gear, were denied several applications.Some applications, like those of Seneca and Mills Products, were rejected because they were deemed incomplete, according to decision memos posted online. But several companies whose applications were denied faced objections from American steel makers.Nucor, an American steel company that has supported the tariffs, argued against Bekaert’s request for an exclusion for wire rod that it uses to produce cord that goes in tires. Nucor said Bekaert had access to enough of the rod without requiring an exclusion.While companies say they still have uncertainties about the requirements for exemptions, many of the approvals and denials so far appear to have come down to whether an American steel or aluminum manufacturer objects to the request. If a United States company opposes a request, the Commerce Department is more likely to reject the application, according to Wilbur Ross, the Commerce Secretary.In fact, Ross says he expected the majority of requests being received will be denied, since many of them are not based “on the idea that the products are not really available.”“Many of the requests are effectively requesting relief simply because the product prices are higher than they would be with the imports, and that’s not a sufficient reason to grant the exclusions,” he said.United States Steel, which said it was restarting idled furnaces around the country in response to the tariffs, has filed objections against a slew of companies seeking exclusions, sometimes opposing dozens of requests from the same source. In most filings, U.S. Steel said it was capable of producing the metal for tubing, casing, piping and sheeting that companies asked for permission to import.The Commerce Department must still deal with nearly 20,000 petitions in its queue. While the administration has said the exclusions are an effective way to ensure the fairness of the tariffs, companies that have applied for the exclusions criticized the exercise as both long and disorganized.“This is the most screwed-up process,” said Mark Mullen, president of Griggs Steel, a steel distributor in the Detroit area. “This is a disservice to our industry and the biggest insult to our intelligence that I have ever seen from the government.”Mullen has made 90 requests and has not been told the status of any of them. He is waiting to submit 2,000 more requests, “but they take so damn long,” he said.As the chaotic exclusion process continues, President Trump is expanding his trade efforts on multiple new fronts, threatening tariffs on up to $450 billion of products from China and roughly $350 billion of imported autos and auto parts.As you might expect, the handful of companies that have received exclusions to the tariffs are so far pleased. Even so, one producer said he filed a request for the exclusion months ago, along with roughly 60 others for various products that he has not yet heard about. The Commerce Department did not inform him that his request had been granted. Instead, he found out by checking for updates online every day.“This has been a very frustrating saga for us,” said Todd Adams, the vice president of Stainless Imports in Florida, after a reporter informed him Friday that his application had been denied, with no reason provided.Last summer, the company landed an order worth several million dollars for a Midwest dairy project. Adams was asked whether his company could provide stainless steel tubes with unusual dimensions. He eventually found a Chinese supplier and was at a port inspecting the first two containers when he heard about the Trump administration’s tariff plan.“This is a personal hit,” he said, likening the payment of hundreds of thousands of dollars in tariffs to a ransom for his own products.It is hard to see how this process overall meets the federal rules typically required for allocation of important benefits such as these waivers – suggesting that much more formal criteria and competitive allocations will be required in the near future. In the meantime, the current process suggests that the government is very much in the process of selecting winners and losers in a significant part of the U.S. economy — an effort that is likely to face a fairly tough political reckoning in the near future, Washington Insider believes. 

EPA Calls Off Biofuel Quota Announcement

Criticism from the oil industry caused the Trump Administration to restart talks over a proposal to require large refineries to blend more biofuel to make up for exemptions granted to smaller refineries. Three people with knowledge of the situation told Bloomberg that, because of the new discussions, the Environmental Protection Agency called off a planned Friday announcement on proposed biofuel quotas for 2019. It’s the latest stalemate in the clash over U.S. biofuels policy between two key Trump constituencies, which are the oil and agricultural industries. Ethanol producers and farm-state lawmakers say that recent waivers granted to small refiners have undercut the Renewable Fuels Standard. The administration’s plan to make up for the lost biofuel gallons would have put the burden on non-exempted refineries, prompting an outcry from the two top oil industry trade groups. The EPA had been preparing to unveil a rule that would set biofuel blending targets for 2019 on Friday. EPA Administrator Scott Pruitt and Ag Secretary Sonny Perdue had planned to travel to Missouri for what was expected to be the biofuel blending announcement.

Senate Farm Bill Setting Up for Debate

Senate Majority Leader Mitch McConnell set the process in motion for considering the farm bill on the Senate floor. On Monday evening, Politico says the Senate is scheduled to hold a procedural vote on the motion to proceed to the farm bill legislation, which will likely pave the way for debate. The Congressional Budget Office posted its breakdown of the Senate Farm Bill. Under the bill, the dairy industry would see an additional $200 million in support over a decade. Row crop farmers participating in the Agricultural Risk Coverage (ARC) Program would also see some of that financial support over the next ten years. Overall spending on the commodity title is expected to be about $400 million less than current law provides, primarily due to the elimination of “economic adjustment assistance” for the cotton industry. The drop is also due to a proposal to reduce the means test that determines eligibility for crop subsidies from $900,000 to $700,000 in adjusted gross income. Total spending on conservation programs would hold steady over the next decade, but the amounts allocated to different initiatives would shift around from current law.

China Says Washington Trade Actions Will Hurt American Workers

A Reuters report says China accused the Trump Administration of being capricious in its handling of trade issues. Chinese government officials warned U.S. workers and farmers that they’ll be hurt because of the administration’s brandishing of “big sticks.” Beijing officials said previous bilateral discussions with the U.S. were effective. However, the commerce ministry spokesman says Beijing has had to respond in a strong manner because of U.S. tariff threats. President Donald Trump recently threatened to hit an additional $200 billion worth of Chinese imports with a ten percent tariff, if Beijing retaliates against his previous announcement of tariffs on $50 billion in imports. The U.S. has accused China of stealing intellectual property. The Chinese Commerce Ministry says that’s a “distortion of reality” and they are prepared to respond with qualitative and quantitative tools if Washington releases a new list of tariffs. China says it could hit back at several firms listed on the U.S. Dow Jones Industrial Average if the president keeps raising the tensions with China over bilateral trade issues.

NPPC Wants Regulations Reined In Further

American pork producers are facing the triple-whammy of declining income, a growing labor shortage, and volatile markets caused by trade disputes. They don’t also need to contend with costly red tape and unfunded mandates from Washington. Those were key points in National Pork Producers Council testimony at a congressional hearing on impacts of regulations on small businesses and farmers. “Regulations add to the cost of doing business, and right now, pork producers don’t need more costs,” said NPPC Past President John Weber, an Iowa pork producer. “Because of trade disputes with China and Mexico and the tariffs they’ve put in place on American pork, hog farmers could lose up to $2 billion this year.” Weber testified before the House Committee on Small Business Subcommittee on Agriculture, Energy, and Trade, saying that pork producers have had to contend with many ill-conceived, burdensome, and costly regulations over the past decade. As examples, he pointed to regulations on the buying and selling of livestock, labeling meat, trucking, air emissions, clean water, antibiotic use, and organic livestock production. NPPC written testimony says the administration and Congress have done a good job of reining in red tape, but Weber says, “more needs to be done.”

Doggett Named Corn Growers Interim CEO

The National Corn Growers selected Jon Doggett, the current NCGA Executive Vice President, as their new interim CEO. He’ll start the new duties August 1, after the departure of current CEO Chris Novak. Doggett has been in the EVP role since 2014. Prior to that, he was the Vice President of Public Policy and continues to manage the NCGA’s 11-person Washington office, as well as leading the organization’s public policy efforts. A Montana native who grew up on his family’s ranch, Doggett has substantial knowledge of production agriculture and more than 30 years of agricultural policy experience. Prior to joining the NCGA, Doggett worked for 11 years at the American Farm Bureau Federation as the lead lobbyist on a number of public policy issues, including ethanol, climate change, land use, conservation, and endangered species. He’s also worked for the National Cattlemen’s Beef Association/Public Lands Council, and as a senior legislative assistant. More information about the formal search process for a permanent CEO will be made at a later date.

EPA Considering Dicamba Registration as Injury Reports Climb

Herbicide injury reports are mounting in the South and the Midwest. A DTN report says state regulators and the Environmental Protection Agency are looking at the situation carefully. Most of the damage reports revolve around dicamba. However, there are 2,4-D damage reports coming out of the southern states. Most of the dicamba injury complaints are coming out of the South, but there are more and more reports in the Midwest. Post-emergence spraying in Roundup Ready Xtend soybeans is still going on and double-crop soybeans haven’t been sprayed yet. Weed scientists tell DTN that injury to non-soybean crops like fruits, vegetables, ornamentals, and trees is being seen at a higher rate than in 2017. The EPA is planning to make a decision about extending the registration of crop protection products that contain dicamba by mid-August. An EPA spokesman tells DTN in an email that their goal is “to make a regulatory decision in time to inform seed and weed management purchasing decisions for the 2019 growing season. Missouri is facing 42 dicamba injury complaints as of June 18th, Tennessee has 19 complaints, and Mississippi has 13, so far. Arkansas is facing 43 complaints in spite of the fact that in-season application is banned. 

House Passes Sheep-Friendly Farm Bill

The U.S. House of Representatives approved the Farm Bill on Thursday by vote of 213 to 211. House Agriculture Committee Chairman Mike Conaway (Texas) shepherded the legislation through committee and onto the House floor this week. 

The legislation is the strongest in decades for the American sheep industry with wool and cotton textile provisions and mandatory funding provided for minor species animal drug development. These were two key requests of the American Sheep Industry Association. Additional risk management is reauthorized with crop insurance and a wool marketing loan. ASI also actively supported the vaccine development program for disease preparedness, which is newly funded in the Farm Bill, as well. 

"Chairman Conaway is commended for his leadership and support for the American sheep industry," said ASI President Mike Corn of New Mexico. 

Also of interest are programs reauthorized for livestock emergencies, as included in testimony of ASI before the committee leadership. 

ASI recognizes Rep. Liz Cheney (Wyo.), who secured an amendment with beneficial language to address the threat to the sheep business posed by wild sheep activists. The language was co-sponsored by Rep Dan Newhouse (Wash.) and supported by Conaway. 

Amy Hendrickson, executive director of the Wyoming Wool Growers Association and a critical sponsor of the congresswoman's amendment, shared enthusiasm for this language. The amendment directs the U.S. Forest Service and U.S. Department of the Interior to make vacant allotments available to grazing permit or lease holders in the event of conflict with wildlife or natural disaster. There is also language that prevents a court injunction in the event that the agency is unable to make a vacant allotment available.  

House Passes Farm Bill 213-211

After the vote total on the House version of the farm bill hung at a tie vote, the eventual tally for the bill moved it forward from the chamber 213-211. No Democrats supported the package and 20 Republicans voted no with four lawmakers (two Republicans and two Democrats) not voting.A relieved House Ag Committee Chairman Mike Conaway, R-Texas, said after the victory that the focus now will shift to the Senate and a hoped-for conference that can be wrapped up before the 2014 Farm Bill expires September 30. "Now we're ready to anxiously await Pat's success next week in the Senate, if he can get his bill done," Conaway told reporters, referring to Senate Ag Committee Chairman Pat Roberts, R-Kan.House Ag Committee Ranking Member Collin Peterson, D., Minn., did not talk with reporters, but said in a statement, "The only upside to its passage is that we're one step closer to conference, where it's my hope that cooler heads can and will prevail." Peterson parted ways with Conaway over work requirements and other provisions on the Supplemental Nutrition Assistance Program (SNAP). He commented that while the current Senate bill is not perfect, "it avoids the hardline partisan approach that House Republicans have taken here today."Conaway said he expects Peterson to "weigh in on behalf of the production of agriculture in the way he has always done."Senate consideration of their version of the farm bill is now expected to take place next week.

Commerce's Ross Believes Soybean Price Drop 'Exaggerated'

U.S. lawmakers this week have stepped up their criticism of steel and aluminum import duties put in place by the U.S., with a Senate Finance Committee session with Commerce Secretary Wilbur Ross bringing those views to the forefront.The current tit-for-tat over steel and aluminum and other trade policies mean U.S. farmers "are bearing the brunt of retaliation for these actions," Senate Finance Chairman Orrin Hatch, R., Utah, told Commerce Secretary Wilbur Ross during the hearing.Hatch said the Trump administration’s tariffs and trade policies are hurting US manufacturing and agriculture without showing a clear strategy for countering China. Ross said the huge spike in steel prices “is not a result of the tariff” but of “antisocial behavior by participants in the industry” — behavior triggered by the tariffs.When Senator John Thune, R-S.D., warned that the resulting soybean price decline was costing South Dakota soybean farmers hundreds of millions of dollars, Ross responded by saying he heard the price drop “has been exaggerated.” He also blamed the price drop on market speculators.Sen. Chuck Grassley, R-Iowa, said the price fall for soybeans equated to $61.25 per acre

Washington Insider: Administration Proposing Safety Net Reorganization

The nutrition safety net expected to be included in the next farm bill has already been the focus of strong opposition in the House, but likely will be kept largely intact in the Senate version. Now, However, the administration is has released a sweeping plan for reorganizing the federal government to consolidate welfare programs — and to rename of the Department of Health and Human Services (HHS), Politico reported recently.Politico also thinks that the biggest changes outlined by the White House are unlikely to be implemented quickly because moving multibillion-dollar programs and renaming federal departments generally requires congressional action. “But the plan, like the president’s annual budget, demonstrates the administration’s thinking on a range of domestic policy issues. It also offers a strong political selling point for the Trump White House as it tries to burnish an image of an administration dedicated to conservative principles and smaller government.”“The administration already put a lot of stuff out in this year’s budget related to cuts, but that was the easy stuff,” the administration official said. “This [report] is the harder stuff.”The new name for HHS would emphasize programs that provide assistance to low-income Americans. HHS, an enormous Cabinet-level agency that spends roughly $1 trillion annually already oversees the Temporary Assistance for Needy Families program, which provides cash assistance to low-income people, as well as Medicaid, the health coverage program for the poor that insures more than 70 million Americans.White House officials have been working on their bid to reorganize the government for months but have kept an unusually tight lid on the plan. The effort stems from an executive order President Trump signed in March of last year directing OMB to come up with a plan to overhaul the government to make it more efficient. Only recently have some of the ideas begun to circulate outside OMB.The plan appears to draw, at least in part, from recommendations made last year by The Heritage Foundation, the conservative think tank that has deeply influenced Trump’s agenda in his first year and a half in office.Heritage recommended that all nutrition functions at USDA, including food stamps, nutrition education and school meal programs that serve some 30 million children each day — be transferred to HHS. It charged that “USDA has veered off of its mission by working extensively on issues unrelated to agriculture.“By moving this welfare function to HHS, the USDA will be better able to work on agricultural issues impacting all Americans.” However, moving nutrition out of USDA, where it makes up roughly three-quarters of the department’s budget, would be regarded as a big blow to the profile of the department, Politico said.Still, conservatives often favor moving food stamps over to HHS, in part because HHS has been out front on instituting first-ever work requirements in the Medicaid program. Already, HHS has approved work requirements for Medicaid enrollees in four states."Generally speaking, we're in favor of the idea," said Kristina Rasmussen, vice president of federal affairs at the Foundation for Government Accountability, a conservative group that's grown increasingly influential among GOP leaders seeking to spend less on welfare programs. "HHS has been doing some pretty exciting things on the work requirements front for able-bodied adults."The New York Times said the Mulvaney proposals likely would be part of a rebranding effort. “They have been using the word welfare because it is pejorative,” said Elaine Waxman, a senior fellow in the Income and Benefits Policy Center at the Urban Institute, a nonpartisan Washington think tank told the Times. “The programs you can call welfare are actually very small in comparison to SNAP, which is an income support necessary to help families, workers and millions of kids.”The Times called Mulvaney’s proposal, “in part, a back-to-the-future bureaucratic move.” From 1953 to 1979, the Department of Health, Education and Welfare housed most of the nation’s social welfare and economic support programs. It was abolished by Congress under President Jimmy Carter, and split into the Department of Health and Human Services and the Department of Education, in recognition that no single department could manage all of the old department’s functions.So, we will see. It is no secret that budget hawks generally would like to push the nutrition programs out of the typical farm-bill support coalition — a development Collin Peterson, D-Minn., House Ag Committee minority leader, said earlier this year would defeat the bill. Currently, most observers think the reorganization the budget hawks are now considering remains a long shot, but one producers should watch closely as this debate proceeds, Washington Insider believes.