USDA's Perdue talks more about farmer aid

USDA Secretary Sonny Perdue confirmed to Reuters in an interview that the aid package for U.S. farmers unveiled by the administration will see dollars start to flow to farmers by late September and into October.That matches the expectation when the plan was announced given that farmers have to harvest their crop or know what their production is before getting the payouts.And, he signaled that around $8 billion would be the amount paid out to farmers with another $200 million for trade promotion efforts.That would leave around $4 billion for the purchase of surplus commodities from the market for use in food/feeding and donation efforts.USDA is still developing the regulations to make the payments a reality, with a target date of completing that work by in August and Perdue signaled the start of signup could be around September 4 which would most likely mean for wheat producers and those in the southern U.S. that have already harvested their crops and know their actual production for 2018.

USDA's Perdue Marks Return of US Pork to Argentine Market

U.S. pork is back on the table in Argentina, with USDA Secretary Sonny Perdue marking the occasion while in Argentina for a meeting of global ag ministers.“The U.S. is the world’s third-largest pork producer and a top exporter,” Perdue said as he sliced a 10-pound honey-baked ham. “This new market is a big victory for American farmers and ranchers. I am confident that once the people of Argentina get a taste of American pork products, they will only want more. This is a great day for our agriculture community and an example of how the Trump Administration is committed to supporting our producers by opening new markets for their products.”The event has been a while in the making, with agreements reached earlier this year for the return of U.S. pork to Argentina that was announced by President Donald Trump.Since that time, U.S. and Argentine trade officials have been finalizing details of the terms of trade and those agreements were completed in April.

Washington Insider: Farm Worries Grow in Spite of New Aid

There was a good bit of farmer angst across the farm belt last week in spite of the administration’s new farmer assistance plan, Bloomberg and others are reporting. While USDA’s plan buoyed markets, “it didn’t win over skeptics on Capitol Hill, including Republicans from politically important agricultural states.” Bloomberg said.Recently, the administration has been pointing to an expected bump in export sales to the European Union (EU) as a result of a U.S.-EU conference, but analysts are downplaying those efforts as solutions for expected impacts of the administration’s “get tough” policy. As an example, Senator Ron Johnson, R-Wis., said, “My thoughts are the thoughts of farmers. They want trade, not aid. It’s really just that simple."One reason that farmers are concerned is that many are convinced that their market losses from the administration’s policies may be much larger than the improved European market access promised by the president. For example, Bloomberg says it expects that the promise President Trump extracted from the European Union to buy more U.S. soybeans “won’t put much of a dent in the potential losses from a continuing trade war with China.”The EU is the second-biggest buyer of the U.S. oilseed, but is “a distant second to China,” which bought $12.3 billion worth of U.S. soy last year compared with the $1.6 billion exported to the EU.Even if the EU bought soybeans exclusively from the U.S., it would add about 10 million metric tons of demand and offset only about 35 percent of the 27 million tons of demand lost if China completely halted U.S. purchases, said Michael Magdovitz, an oilseeds analyst at Rabobank International.Still, Republicans are hoping the EU agreement helps offset some of the potential political damage. House Agriculture Committee Chairman Michael Conaway, R.-Texas, thanked the Trump administration on Wednesday “for having our farmers’ and ranchers’ backs, including today’s announcement on expanded market access in Europe."In addition, the administration recently unveiled a new $12 billion farm aid program that was welcomed in many farm areas but was widely seen as having limited impacts. For example, Sen. Ben Sasse, R-Neb., said the administration’s tariff policies had been “cutting the legs out from under farmers” and yet its plan “is to spend $12 billion on gold crutches.” Sens. Rand Paul, R-Ky., Bob Corker, R-Tenn., Chuck Grassley, R-Iowa, and Jerry Moran, R-Kan., also joined in the criticism.Part of the concern about the administration’s aid program may be the result of administration efforts to minimize its potential impacts. For example, USDA Secretary Perdue echoed the comments of White House economic adviser Larry Kudlow who said Wednesday that the aid package is only temporary and that the entire $12 billion in assistance that was announced might not be needed.“Nobody’s really thrilled about this,” Kudlow said. “We’re just trying to protect American agriculture from some of the unfair trading practices.” Both Kudlow and Perdue emphasized that the aid is temporary and “unlikely to be extended in future years” even if tariff battles continue, Perdue said.Farmers who planted this year "had no idea what was coming about" on trade, Perdue said. Once a new market equilibrium is established, there would be much less, if any, need for additional assistance, he said. "We don’t expect trade disruption as much in future crops."The administration continues to promise that farmers will “emerge from a trade war better off” and many farmers are accepting that message, Bloomberg says. Still, an extended trade dispute that lingers into the fall harvest – and midterm elections — could weaken the President’s political support and he has been under pressure from lawmakers representing rural parts of the country to back away from imposing tariffs.That pressure won’t work, President Trump said last week. "China is targeting our farmers, who they know I love & respect, as a way of getting me to continue allowing them to take advantage of the U.S.," Trump tweeted. "They are being vicious in what will be their failed attempt."So, we will see. Much of the uncertainty is a deep and growing disagreement over the purpose of the ongoing fight — focused on trade deficits, rather than market access or growth. Most economists are highly skeptical over the importance of the trade deficit metric and question the policies being used to reduce it. At the same time, several key officials deeply believe that deficits are crucial and must be confronted.So, we are likely to experience deeper, more-bitter disputes over trade policies in the near future, especially if severe market declines are experienced. This is a fight producers should watch closely as it proceeds, Washington Insider believes. 

Trade Aid for Farmers Could Start Late September

The aid package announced to offset harm by the Trump administration’s trade policy for agriculture could be ready to go by October, according to Agriculture Secretary Sonny Perdue. While in Argentina as part of the G20 meeting of agriculture ministers, Perdue told Reuters the aid package could have payments reaching farmers by late September. The plan would include between $7 billion and $8 billion in direct cash relief as the Department of Agriculture expects U.S. farmers to take an $11 billion hit due to retaliatory tariffs after Washington placed duties on Chinese goods. However, Perdue cautioned: “Obviously this is not going to make farmers whole.” Checks will go out to farmers “as soon as they prove their yields,” according to Perdue, who says the yields will be based on actual production, not historical averages. The program is a response to trade tariffs implemented on U.S. agriculture goods for the 2018 crop year only, as Perdue says “we do not expect to do this over a period of time.”

U.S. Chamber: Trade Aid for All Could Cost $39 Billion

Providing aid to industries impacted by negative trade policy could cost the nation $39 billion, according to new data by the U.S. Chamber of Commerce. Farmers are expected to receive a $12 billion aid package to lessen the burden of trade disputes by the Trump administration. The U.S. Chamber of Commerce calls farmers and ranchers the “hardest hit” by Trump’s trade policy, suffering deep economic losses. However, agriculture is not alone, and an analysis by the U.S. Chamber found that offering so-called bailouts to all industries affected by trade policies would cost taxpayers $39 million. The Chamber says the administration’s focus should be expanding free trade and removing harmful tariffs, “not allocating taxpayer’s money to only marginally ease the suffering” for some of the industries feeling the pain of the trade war. Farmers and ranchers in unison have told the Trump administration they want trade, not aid.

NAFTA Renegotiation Showing Signs of Progress

The U.S. and Mexico are nearing an agreement on the trade of automobiles as part of the North American Free Trade Agreement renegotiation effort. Politico reports the U.S. and Mexico are in the "final stages" of reaching a deal on the automotive rules of origin section of NAFTA, key to completing the renegotiation. A team of negotiators is in Washington, D.C. this week to continue the talks. However, other issues within the negotiations, including a sunset provision and dispute settlement, along with dairy trade, remain unsettled. President Trump has leaned towards striking a deal with Mexico first, before moving on to hashing out details with Canada. However, officials from Canada and Mexico agree that any final deal would be trilateral between the three nations. U.S. Trade Representative Robert Lighthizer said last week that finishing the talks with Mexico could put pressure on Canada to reach an agreement. Scrapping Canada’s dairy supply management system, a goal for the U.S. as part of the negotiations, remains “unacceptable,” according to trade officials from Canada.

Letter Urges Trump to Rejoin

TPPA letter from the Freedom Partners is urging the President to rejoin the Trans-Pacific Partnership, now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Freedom Partners started in 2011 to promote the benefits of free markets and a free society. The group launched an advertising campaign this week against President Trump's trade policy and ongoing trade war with China, that is expected to cost farmers and ranchers $11 billion. In a corresponding letter, the group said “we must join them,” referring to nations that are “not waiting for us,” and signing trade deals to eliminate tariffs. The organization calls the new TPP agreement one that includes better standards for trade and significantly lowered tariffs. Once in full effect, the group alleges that the agreement will put American businesses at a distinct competitive disadvantage and will increase trade losses to other countries.

Nebraska, Iowa, to Lead Antimicrobial Research

Three universities will partner to lead research on antimicrobial resistance. The Association of Public and Land-grant Universities and the Association of American Veterinary Medical Colleges recently announced the University of Nebraska-Lincoln, Iowa State University and the University of Iowa will partner to lead a new national institute addressing antimicrobial resistance. Meat industry publication Meatingplace reports the institute will be jointly funded by the University of Nebraska-Lincoln and Iowa State at a combined $525,000 per year for three years, totaling $1.5 million. A University of Nebraska official called antimicrobials a critically important tool for maintaining human, animal and crop health. The spokesperson added that the institute will “accelerate discoveries and engage producers in new and impactful ways that will enhance the stewardship and prolong the shelf life” of antibiotics.

NCGA Seeking Good Steward Nominations

The National Corn Growers Association "Good Steward" nomination deadline is fast approaching, Monday, August 6th. NCGA is asking for nominations of someone who is “doing a stellar job on their farm of demonstrating the economic and conservation value of soil management.” This year anyone can nominate a candidate for recognition if they are a corn grower member of the association. NCGA affiliate states and organizational partners may also submit nominations. One recipient will be selected from a field of nominees submitted by NCGA state affiliates and other corn industry and organizational partners. Nomination forms must be completed jointly by the nominating party and the nominee and will be processed through NCGA. Selection of the Good Steward Recognition will be made by experts in the field of agricultural conservation, environment and sustainability. The announcement of the recipient will be made at Commodity Classic in Orlando, Florida, next year. 

BEEF PARTNERSHIP TO FEED IDAHO’S HUNGRY KICKS OFF IN AUGUST

BOISE (July 30, 2018)   Idaho’s beef industry stands as the state’s second largest agricultural industry, making it a strong contributor to the state’s economy. Yet Idaho’s cattle ranchers contribute to the community in many other ways as well. In August, the Idaho Beef Council (IBC) is one of several partners kicking off a month-long Beef Counts campaign to benefit The Idaho Foodbank.  Beef Counts is an industry-driven initiative that helps put nutritious beef on the tables of the food-insecure. Sponsored by Albertsons, Agri Beef and IBC, the upcoming Beef Counts campaign begins on Wednesday, August 1, with a BBQ from 3 -7 p.m. in the parking lot of Albertsons at 1219 W. Broadway Ave. in Boise. This will be followed by a second Beef Counts BBQ event held Saturday, August 4 from 11 a.m. to 3 p.m. at the Albertsons at 590 E. 17th St, Idaho Falls. The events feature the popular Cowboy Ninja on American Ninja Warrior and Idaho beef producer, Lance Pekus, who will be available to greet fans and sign autographs. During each BBQ, beef will be on the menu as Albertsons serves up Double R Ranch Beef Hot Dogs with chips and a drink. A Beef Counts Raffle will complete the week’s events by providing a made-in-Idaho Sawtooth Pellet Grill and an Double R Ranch’s “Best of the West” Beef Collection to the winner valued at approximately $1,500. Raffle tickets will be sold at both BBQs, with the drawing to be held at 3 p.m. on Saturday following the second BBQ. The events draw attention to the needs of the Idaho’s hungry and the families that rely on The Idaho Foodbank for crucial meals. During the entire month of August, Albertsons and Agri Beef will donate up to $20,000 based on purchases of Double R Ranch Beef at southern Albertsons stores. “The Beef Counts program is a great way to give back to the community,” says Trish Dowton, IBC Secretary/Treasurer of the Board and Pahsimeroi valley rancher. “As a rancher, I believe strongly in the quality and commitment that goes into producing beef and beef products in this state. As a good neighbor, I and other ranchers want to make sure that all Idahoans have access to the nutrient-dense protein of our beef.” A growing body of research shows the value of beef in the daily diet of children, adults and athletes. One 3 ounce cooked serving of beef provides 25 grams of protein, roughly 50% of the Daily Value, as well as 10 essential nutrients including protein, zinc, iron and B vitamins. For low-income populations and The Idaho Foodbank recipients, the nutrients found in beef are a highly concentrated way to support good health.For further information, contact T.K. Kuwahara, Executive Director, Idaho Beef Council, tkuwahara@idbeef.org, (208) 376-6004. 

Trump to Approve Year-Round E15 Soon

President Trump says his administration is “very close” to approving the year-round sale of the E15 blend of ethanol very soon. During a trip to Iowa on Thursday, Trump told the audience, “I’m very close to pulling off something that you’ve been looking forward to for many years, and that’s the 12-month E15 waiver. We’re getting very close to doing that.” The Quad City Times says Trump called the process “very complex.” The President noted that he stuck with ethanol, saying most of the other candidates “weren’t there, to put it mildly.” Pro-ethanol group Growth Energy says, “We are pleased to hear President Trump say he’s ‘very close’ to making E15 available year-round, fulfilling his promise to America’s farmers.” Growth Energy says increased access to U.S. markets will provide America’s farmers with some financial confidence and they hope the President will direct the Environmental Protection Agency to act quickly to provide year-round RVP (Reid Vapor Pressure) relief.

EU Insists Agriculture Not a Part of Trade Truce with Trump

The European Union says that the proposed trade talks with the United States wouldn’t include farming. The website Business Times Dot Com says this directly contradicts what President Donald Trump says. An EU Commission spokeswoman says they’ve been very clear on that fact. The spokeswoman adds that agriculture is not part of it, only the things that were specifically mentioned in the statement that came out Thursday. “The joint statement shows no mention of agriculture, as such you’ll see a mention of farmers and a mention of soybeans, which are part of the discussion,” says Mina (MEE-nah) Andreeva. “That is part of the discussion and we will follow up on that.” The EU clarification comes one day after the president called the agreement a “major victory for U.S. farmers,” who’ve seen plummeting exports due to Washington’s trade policies. Trump told a rally in Iowa that “We’ve just opened up Europe for you farmers.” The EU may be feeling pressure to emphasize that there was no farming concession made to Trump because of opposition in Europe to more genetically modified imports from America.

Bankers: Farmers Want Trade Not Handouts

Following the president’s announcement of a $12 billion trade assistance package to farmers, the nation’s bankers echoed farmer sentiments, saying producers want free trade and not handouts. A Farm Journal report quotes ag lender Alan Hoskins as saying it’s far too soon to know how beneficial the aid will be. Hoskins did say one thing is clear; it’s not what farmers want. “They want to be able to turn a profit by selling their grain,” Hoskins says, “and not by getting government handouts.” Hoskins says cash flow is going to be very tight this year, which will lead to some difficult conversations between producers and lenders. However, he says it’s not something to be feared by producers, but rather it’s an opportunity to sit down and work together to figure out something that will benefit farmers. Illinois producer Michael Cox tells Farm Journal that the aid package is just a temporary fix, at best, because there are too many questions about the program. Hoskins says many farmers are wide open to market volatility at this point and those payments will come in handy. 

Lighthizer Testimony: NAFTA Deal Possible in August

During congressional testimony on Thursday, U.S. Trade Representative Robert Lighthizer told lawmakers that it’s entirely possible that the three North American Free Trade Agreement members will reach a deal in August. Lighthizer says that would meet the Mexican objective of having current President Enrique Pena (PAIN-ya) Nieto (KNEE-eh-toe) sign the deal before he leaves office in December. Bloomberg says U.S. trade law requires a three-month waiting period before the parties can sign off on the deal. Should the three countries not reach a deal until September or later, the incoming President of Mexico would have to sign off on it after he takes office. Lighthizer says Canada may be the sticking point in reaching a new NAFTA agreement. “My hope is that we’ll have a quick resolution with Mexico, and, as a result of that, Canada may come in more willing to compromise,” Lighthizer said in testimony. The current Mexican Economy Minister says it is possible they will reach a deal with the U.S. in August. The chief NAFTA negotiator for the incoming government says he’s more “cautiously optimistic” about the direction of the talks.

Senate Stalls on Farm Bill Conference

The Senate left Washington on Thursday without voting to move the farm bill forward to conference, or even naming conferees. Politico says those were two goals that Ag Chair Pat Roberts and Ranking Member Debbie Stabenow wanted to get done before Senators left town. Politico says the delay could be a result of a number of different things, including backdoor, last-minute deals and jostling by Senators who want to get a seat on the conference committee. Iowa Senator Chuck Grassley says he and South Dakota Senator John Thune, who represent key ag states, could be left off the committee if leadership only names five Republicans to the panel. If the lingering issues get worked out over the weekend, the earliest the Senate could vote would be Monday afternoon. The House left for its summer recess last Thursday. However, a spokesman for Senate Majority Leader Mitch McConnell tells the Hagstrom Report that the Senate is expected to vote to go to conference in the coming week.

Groups Want “Fake Meat” Regulated by USDA

Seven groups that represent meat and poultry producers, as well as processors, wrote a letter to President Trump asking him to place cell-cultured protein products under USDA regulation. The meat industry website Meating Place Dot Com says the groups want these products held to the same high standards for food safety and labeling that meat and poultry are held to under the USDA regulatory system. In the letter, the groups say, “Cell-cultured products that purport to be meat or poultry should be subject to the same comprehensive inspection system that governs amenable meat and poultry products to ensure that they are wholesome and safe for public consumption.” The groups also want the products regulated in a way that ensures they are labeled and marketed in a manner that levels the playing field in the marketplace. The groups also say that the Food and Drug Administration tried to assert itself as the primary regulator of cell-cultured products at a public meeting the USDA was excluded from. The groups say that is inconsistent with meat and poultry inspection statutes, as well as a White House Agency reorganization plan that consolidates food safety inspection duties into a single USDA agency. 

Montana Farm Bureau VP hones speaking skills at communications boot camp

Montana Farm Bureau Vice President Cyndi Johnson learned all about giving speeches and working with media at the 12th Annual American Farm Bureau Women’s Communications Boot Camp. Johnson was one of 15 farm and ranch female leaders who were recognized by AFBF as graduates of the comprehensive training. The intensive three-day course comprised hands-on sessions regarding public speaking, working with the media and messaging. Johnson, a small grains farmer from Conrad, said their first order of business was to give a speech on trade, the farm bill or the Endangered Species Act (ESA). Johnson opted for the latter, explaining to the group why grizzly bears are becoming more prevalent in wheat country.Following their speeches, the women learned about writing and giving public presentations. “The first tip was to know your audience and know their needs. Don’t make the speech all about yourself,” Johnson said. “If you are talking to a group who has no clue about grizzly bears and where they live, you need to know that when you give your speech. We were instructed to use words like farmers and ranchers instead of producers and name the actual product instead of using the word ‘commodity.’  Use words such as cattle, hogs and wheat. Some verbiage is obvious to someone in our line of work but remember that not everyone knows what we do. You need to make what you say understandable to your audience.”When preparing the speech, participants were advised to clean up what they wanted to say. “Get to the facts quickly and present your message. Give the audience stories to support the message. If you use statistics, be sure to have the information to back them up.”The group was interviewed by mock newspaper, television and radio reporters, and later critiqued. The “final exam” was rewriting the original speech using skills gleaned from the sessions and presenting it to the group.Participants were encouraged to visit Capitol Hill. Since Johnson had recently met with all three Montana Congressmen during the MFBF Advocacy and Action Incentive Program trip to Washington, D.C., she opted to visit with Dan Gerig, Senator Daines’ ag liaison.“I used knowledge gained from research for my speech at boot camp and visited with him about the ESA and ESA reform,” said Johnson. “We discussed trade, the farm bill and farming. I even invited him to come to our farm and drive the combine.” 

European Union Agrees to Buy More U.S. Soybeans

President Donald Trump and European Union leaders announced they’ve agreed to work toward “zero tariffs” and “zero subsidies” on a wide range of non-automobile goods. The sides will also work to resolve U.S. tariffs on steel and aluminum which are hitting the European markets hard. In a news conference on Wednesday, the President said the EU has agreed to buy “a lot of soybeans” and increase imports of natural gas from the U.S. European Commission President Jean-Claude Juncker (Zhean Claude-Yunker) says the two countries have agreed to hold off on implementing any more tariffs while they work to avoid a crippling trade dispute. An Associated Press article quotes the President as saying it was a “very big day for free and fair trade.” Trump says they will “resolve the steel and aluminum tariffs and the retaliatory tariffs.” He says America does have some of its own retaliatory tariffs that will be resolved as a part of the trade talks. Juncker says he came to America to make a deal, which they’ve done. “We’ve identified a number of areas to work together on, including working toward zero tariffs on industrial goods,” Juncker says. As American soybean farmers have struggled in recent months, Juncker says the EU can buy more soybeans and will immediately do so. 

NAFTA Back in the Spotlight

The Mexican negotiating team is back in Washington to continue the North American Free Trade Agreement renegotiation after talks among the U.S., Mexico, and Canada stalled two months ago. The Mexican Economy Minister will meet with U.S. Trade Representative Robert Lighthizer for the first time since the Mexican presidential election on July first to formally restart the talks. A source close to the talks tells Politico there’s hope that the U.S. might have a new position in the talks. “It wouldn’t make sense to restart the talks if there’s no change in position,” the source says. A big part of this week’s meeting between the U.S. and Mexico will be to see if the U.S. “has found a way to work through the challenges with Mexico.” There is some skepticism that may be the case. A vice president with the National Trade Council doesn’t see how (Trade Rep) Lighthizer will back down, saying “he’s been pretty consistent on the poison pill issues.” Mexico and Canada both shut down the idea on Wednesday that the NAFTA renegotiation could be split into two bilateral deals with the U.S. in spite of President Trump’s repeated comments that the U.S. could reach a deal with Mexico first.

Ag Committee Leaders Meet to Discuss Farm Bill

Senate Ag Committee Chair Pat Roberts, Ranking Member Debbie Stabenow, House Ag Chair Michael Conaway, and Ranking Member Collin Peterson met today about the farm bill conference. The meeting took place even though the Senate hasn’t voted to go to conference. The Hagstrom Report says, “The Big Four,” as they’re sometimes called, issued a brief joint statement that didn’t mention any of the major differences between the two bills. The biggest differences between the two bills are the work requirements for the Supplemental Nutrition Assistance Program and payment limits. The statement says, “We look forward to working together to get a farm bill done as quickly as possible and we’re committed to finding solutions to resolve the differences. We must keep working to provide American farmers and families with the certainty and predictability they need and deserve.” An aide involved in the talks say the four have agreed to weekly phone calls, have begun discussing when they can meet in August and are committed to having a new farm bill in place by September 30.

USDA Preparing Alternative to WHO Antibiotic Guidelines

USDA officials are reportedly developing an alternative set of guidelines on antibiotic use in animal agriculture, rather than abide by those developed at the World Health Organization. The WHO recommendations first came out last November, proposing to end the use of medically important antibiotics in healthy animals to promote growth and prevent disease. The agency wanted the drugs only used in sick animals, or in healthy animals that were being raised near infected animals. WHO also wants a complete ban on using antibiotics in animals that are used to treat humans. The agency’s goal is to keep the drugs as effective as possible for human use. USDA rejected those findings, saying it should have a broader role in developing the guidelines. A Bloomberg report quotes a USDA official as saying the WHO policies “are not in alignment with U.S. policy and not supported by sound science.” The report says USDA officials are working on a series of guidelines that Bloomberg says aren’t as stringent as the WHO recommendations. A draft of the USDA guidelines allows antibiotics to be used in healthy animals for disease prevention and offers potential uses to promote animal growth, which is currently illegal in the U.S. 

Study: Farmers Will Buy Less Crop Insurance if it Costs More

Crop insurance critics have said for a long time that it’s such a vital product that a rise in premium rates will have no impact on farmer participation. A peer-reviewed study says such claims may be convenient for special interest groups hoping to weaken the risk-management tool by making it more expensive. However, those claims aren’t correct. Dr. Josh Woodard of Cornell University says, “crop insurance would likely respond fairly quickly to large cuts.” Woodard’s work was recently published in the Journal of Risk and Insurance. He says crop insurance demand is clearly responsive to price. That’s been proven by a rise in participation following Congressional actions over the years to provide premium support instead of ad hoc disaster payments. “Crop insurance is already expensive, but participation is necessary to obtain new loans to invest in new technologies and conservation practices,” Woodard says. “Significantly cutting this support would not only hinder farmers ability to run sustainable operations, it will push many farmers out of crop insurance and out of the business.” The findings are quite a bit different from past studies which assumed that crop insurance demand would be unresponsive to price changes.

Farm Bureau Recognizes Boot Camp Graduates

The American Farm Bureau Federation recognized the 15 farm and ranch women leaders that graduated from the organization’s 12th annual Women’s Communications Boot Camp. The graduates completed an intensive three-day course which included hands-on sessions on public speaking, working with the media, and messaging. “It’s gratifying to see the increased confidence of these women leaders as they sharpen their skills for sharing messages about agriculture,” says Sherry Saylor, an Arizona row crop farmer and Chair of the AFB Women’s Leadership Committee. “Boot Camp graduates are more persuasive and effective in connecting with influencers at the local, state, and national level.” The AFB Women’s Leadership Committee partners with Farm Bureau staff to provide training for the Women’s Communications Boot Camp. This is the 12th year of the program, which has more than 180 graduates. It’s open to all women in the Farm Bureau. There is an application process used to select each year’s participants. 

Groups Urge President To Allow USDA To Regulate Cell-Cultured Protein

Seven groups representing meat and poultry producers and processors have written directly to U.S. President Donald Trump urging that USDA be given authority for regulating cell-cultured protein products.Such products should be held to the same rigorous food safety and labeling standards as meat and poultry under the regulatory system administered by USDA, the groups asserted.“Cell-cultured protein products that purport to be meat or poultry should be subject to the same comprehensive inspection system that governs other amenable meat and poultry products to ensure they are wholesome and safe for consumption, and to ensure they are labeled and marketed in a manner that provides a level playing field in the marketplace,” the groups said.The American Farm Bureau Federation, American Sheep Industry Association, National Cattlemen’s Beef Association, National Chicken Council, National Pork Producers Council, National Turkey Federation and North American Meat Institute signed the letter.They noted the U.S. Food and Drug Administration (FDA) indicated plans to assert itself as the primary regulator of cell-cultured products at a recent public meeting that FDA excluded USDA from attending.FDA’s “power grab” comes on the heels of the White House’s recently released government reorganization plan that included moving primary federal food safety functions into a single agency housed within the USDA.“Having cell-cultured protein products regulated by FDA is not only inconsistent with the meat and poultry inspection statutes, but also with the White House’s reorganization plan,” the groups said. 

Annual Spring Wheat Tour Sees Improvement from 2017 Drought Impact

 By Amanda J. Spoo, USW Assistant Director of Communications

This week, the Wheat Quality Council hosted its annual hard red spring (HRS) and durum crop tour. Participants spent three days mainly in North Dakota surveying this year's crop and estimating yield. The tour, which surveyed a total of 342 fields, estimated weighted average HRS yield at 41.1 bushels per acre (bu/a), slightly higher than last year’s HRS average of 38.1 bu/a, which was impacted by ongoing drought conditions in western areas. The durum weighted average yield was 39.3 bu/a, in line with last year’s average of 39.7 bu/a.  

Cattlemen Urge President Trump to Support USDA Oversight of Lab-Grown Fake Meat

WASHINGTON (July 26, 2018) – Today the National Cattlemen’s Beef Association (NCBA) and other leading organizations in the animal agriculture industry (“the Barnyard”) sent a letter to President Donald J. Trump urging him to ensure the U.S Department of Agriculture (USDA) acts as the primary regulatory authority over lab-grown fake meat products. The Federal Meat Inspection Act (FMIA) designates USDA as the main oversight body for emerging lab-grown products. However, in recent weeks the Food and Drug Administration (FDA) has moved aggressively to assert regulatory jurisdiction over lab-grown fake meat. “The American people elected President Trump because they trusted him to promote a level playing field for American products around the world,” said Kevin Kester, President of NCBA. “Now, the President has the chance to demonstrate his support for free and fair markets right here at home. By supporting USDA oversight of lab-grown fake meat, the President will protect American consumers and ensure that America’s farmers and ranchers are not disadvantaged in the marketplace.”In the letter, the Barnyard groups highlight the critical role USDA plays in enforcing the same rigorous food safety and labeling standards for all meat and poultry products.

“Undoubtedly, USDA’s exacting standards impose regulatory burdens on meat and poultry producers – as they should,” the groups wrote. “However, if cell-cultured protein companies want the privilege of marketing their products as meat and poultry products to the American public, in order to ensure a fair and competitive marketplace, they should be happy to follow the same rules as everyone else. Consumers expect and deserve nothing less.”The groups also questioned the FDA’s “regulatory power grab” and noted that the agency’s actions are inconsistent with a recently-released White House government reorganization plan. 

Wolf kills affect 113 Idaho livestock producers

BOISE, Idaho (KIFI/KIDK) - The Idaho Rangeland Resources Commission (IRRC) has confirmed 61 head of domestic livestock have been killed by wolves so far this calendar year. Seven sheep were killed in three separate attacks in the Sawtooth National Recreation Area between July 9th and July 13th.

According to the commission, federal authorities have responded to a record 113 different sheep and cattle ranches where livestock kills were confirmed during fiscal year 2018. In total, federal officials investigated incidents on 217 properties.

"We need to keep wolf numbers down to a manageable level, and that takes persistent diligence by all concerned to work on this chronic issue," said Carey rancher and IRRC board member John Peavey. "Wolves are here to stay. But we need to keep them as wild as possible to ensure they're eating wild game such as moose, elk and deer, like they're supposed to do. Once they start killing livestock, they need to removed, because we know they'll go out and kill livestock again." 

Producers say there are "chronic livestock depredation" issues in Lemhi, Custer, Valley, Idaho, and Elmore counties. They say there are at least 80 to 100 wolf packs living in Idaho and essentially occupy the entire state north of Interstate 84.

The Idaho Wolf Depredation Control Board, with funds from the Idaho Legislature, supports Wildlife Services' control work to protect ranchers from continued wolf kills.  

Trade Assistance Details Still Being Worked Out

The Trump Administration announced its $12 billion plan to help farmers struggling under the escalating trade wars. Politico says there are still important details to be worked out, including just how much help farmers will get and how they’ll prove economic harm. More details are scheduled to come out after Labor Day. USDA Chief Economist Robert Johansson says soybean farmers, who are big exporters, are expected to benefit the most. In addition, farmers won’t know until harvest exactly how much assistance they’ll be eligible for. The USDA is relying on mechanisms authorized under the charter act of the Commodity Credit Corporation, which is a government-owned bank used to support or stabilize prices. That means it doesn’t require approval from Congress. However, the specifics of the plan will still be subject to a federal rulemaking process. The three-part plan will aid farmers through programs that are focused on payments, purchases, and trade promotion efforts. Ag Secretary Sonny Perdue says the plan incorporates functions of the Farm Service Agency, Agricultural Marketing Service, and the Foreign Agricultural Service.

Not All Reactions to Trade Assistance Are Positive

The President’s plan to aid farmers in the midst of the trade war is not sitting well with several groups, including a number of Republicans in Congress. Senator Ron Johnson of Wisconsin says, “This is becoming more and more like a Soviet-style economy here with commissars in the administration figuring out where to sprinkle around benefits.” According to the Hagstrom Report, Growth Energy CEO Emily Skor says the administration missed an opportunity to provide long-term relief to farmers by increasing domestic demand for ethanol through RVP relief. “Allowing year-round sales of higher blends like E15 is one way to address sales lost because of tariffs and give a little more certainty for farmers,” says Skor. The Heritage Foundation’s Trade Economist Tori Whiting says the plan is a misguided attempt to mitigate the harm caused by tariffs at taxpayer expense. “Bad policy doesn’t justify more bad policy,” Whiting says. “The administration’s plan to throw more money at a problem it created will not increase the freedom to trade in America.” North Dakota Senator Heidi Heitkamp says the lost markets overseas will be very difficult to bring back because they took years to create.

U.S., EU to Talk Trade

President Donald Trump says the U.S. and the European Union should drop all tariffs, subsidies, and barriers. This comes as EU trade officials were set to meet with him on Wednesday. In a Tuesday night Tweet, Trump said “I have an idea for them. Both the U.S. and EU drop all tariffs, barriers, and subsidies. That would finally be a fair market and free trade. Hope they do it, we are ready – but they won’t!” A Bloomberg Report says the European Commission President and Trade Adviser will both meet with Trump this week in Washington with the goal to negotiate a bilateral trade agreement with the U.S. The meeting is a last-ditch attempt to avoid U.S. imposition of tariffs on automobile imports from the European Union, which would be a serious economic blow to the 28-nation group’s economy. Should the U.S. eventually follow through on its tariff threat, the Commission is preparing a list of retaliatory tariffs on $20 billion dollars of U.S. imports

EPA Approves Sorghum Oil for Biofuels

Environmental Protection Agency Administrator Andrew Wheeler approved sorghum as an eligible feedstock under the Renewable Fuels Standard. The announcement marks a significant step toward leveling the playing field for ethanol plants that extract oil from sorghum. The National Sorghum Producers worked closely with EPA over the past two years to establish a biofuels pathway for sorghum oil in the RFS. Tuesday’s announcement now provides new market access for sorghum producers. NSP Chair Don Bloss of Nebraska says Tuesday was a great day for sorghum farmers and their partners in the ethanol and biodiesel industries. “A pathway for sorghum oil opens new markets for ethanol plants extracting sorghum oil and will ultimately add value to the grain farmers produce,” says Bloss. NSP Board Director Tom Willis says the pathway for sorghum oil reaches far beyond the farmer. “This is an avenue to creating the jobs in rural America that we so desperately need, and it provides energy security from a renewable water-conserving source,” says Willis. Growth Energy CEO Emily Skor applauded the move, calling it “long overdue and very welcome news for the renewable fuels industry.” 

Eliminating Antibiotic Use Would Cost Cattlemen $1.8 Billion

Kansas State University recently announced the results of a study on the economic impact of treating high-risk groups of animals with antimicrobials. They undertook the study to contribute to the growing public debate on antibiotic use in animal agriculture. The study focused on the practice (called metaphylaxis) of treating an entire pen of high-risk animals to eliminate or minimize the onset of disease. USDA says metaphylaxis is (Met-ah-PHIL-axis) used selectively by 59 percent of American feedlots on 20 percent of all cattle on feed. “There’s a general sentiment and public policy concern about the use of antibiotics in animal agriculture,” says Ted Schroeder, a Kansas State Livestock Economist. “Our study assessed the economic impacts on the beef cattle industry and consumers of using the practice in the beef cattle industry.” The major finding was if metaphylaxis were eliminated in the U.S. without viable alternatives, it could cost the industry as much as $1.8 billion dollars. The resulting reduction in profitability through the beef industry would be passed on to consumers in the form of higher prices

Livestock Groups Highlight Misuse of Environmental Laws

Cattle and sheep producers warned Congress that environmental laws are increasingly being misused by fringe activist groups and pose a growing threat to grazing on federal lands. The House Oversight and Government Reform Subcommittee on the Interior, Energy, and the Environment held a hearing. It was in response to mounting challenges faced by ranchers who graze livestock on federal lands and the opportunities for productive range management practices. All of the livestock groups present say that litigation through the National Environmental Policy Act and the Equal Access to Justice Act is now an unavoidable obstacle for ranchers seeking to put conservation benefits on the ground. A major example in the sheep industry is the loss of grazing over conflicts with agenda-driven activists. A Montana sheep producer testified that pathogen transmission concerns without scientific basis have been used to force a separation between domestic and bighorn sheep in the state. “Our reward for working with the state to introduce bighorn sheep has been three years costly federal litigation,” he says. “A loss in litigation means we won’t be able to graze lands we’ve used for multiple generations.” Another major issue impacting farmers and ranchers across the country is misuse of the Endangered Species Act. 

USDA Unveils Plan to Assist Farmers Impacted by Tariff Retaliation

On July 24, USDA Secretary Sonny Perdue announced a plan to assist farmers in response to trade damage from unjustified retaliation. Specifically, USDA will authorize up to $12 billion in programs, which is in line with the estimated $11 billion impact of the unjustified retaliatory tariffs on U.S. agricultural goods. These programs will assist agricultural producers to meet the costs of disrupted markets. Secretary Perdue said, “The President promised to have the back of every American farmer and rancher, and he knows the importance of keeping our rural economy strong. Unfortunately, America’s hard-working agricultural producers have been treated unfairly by China’s illegal trading practices and have taken a disproportionate hit when it comes to illegal retaliatory tariffs.  USDA will not stand by while our hard-working agricultural producers bear the brunt of unfriendly tariffs enacted by foreign nations.” 

These assistance programs were announced:

Market Facilitation Program - authorized under the Commodity Credit Corporation (CCC) Charter Act and administered by the Farm Service Agency; will provide payments incrementally (as 2018 production becomes known) to producers of soybeans, sorghum, corn, wheat, cotton, dairy, and hogs.


Food Purchase and Distribution Program - implemented through the Agricultural Marketing Service to purchase unexpected surplus of affected commodities such as fruits, nuts, rice, legumes, beef, pork and milk for distribution to food banks and other nutrition programs.


Trade Promotion Program - administered by the Foreign Agriculture Service in conjunction with the private sector to assist in developing new export markets for our farm products.USDA officials indicated that Market Facilitation Program payments to farmers will be based on 2018 actual production multiplied by a ‘to-be-determined’ payment rate. USDA Trade Counsel Jason Hafemeister stressed that the assistance programs will not be a long-term platform that bleeds into 2019. “This is a short-term bridge to help the president successfully negotiate these deals,” he said. Hafemeister also explained that the payments should easily fall within current WTO guidelines for domestic support. Greg Ibach, Under Secretary for Marketing and Regulatory Programs, when asked about relief for ag input and service providers who may also be affected by tariff retaliation, said, “As a farmer myself, I can assure you that as we improve the economic conditions of our nation’s farmers and ranchers, as a community we are notorious about reinvesting those funds back into our community in purchasing goods and services that allow us to have continuing and viable farm operations. So the indirect and ripple effect of these investments will be seen in that way.” The plan detailed by USDA does not require congressional approval. More details will be announced in mid-August with signup for the Market Facilitation Program expected to begin in early September.  

USDA Assistance for Farmers Impacted by Trade Retaliation

Ag Secretary Sonny Perdue says the USDA will take several steps to assist farmers suffering from trade damage due to unjust trade retaliation. USDA will authorize up to $12 billion in programs, which is in line with the estimated $11 billion impact of the retaliatory tariffs on U.S. agricultural goods. These programs will help producers to meet the costs of disrupted markets. A disproportionate number of the retaliatory tariffs were aimed directly at agricultural products. Perdue says this is a short-term solution that will allow the President more time to work on long-term trade deals to benefit agriculture and the U.S. economy. “The President promised to have the backs of every American farmer and he knows the importance of keeping our rural economy strong,” Perdue says. “USDA will not stand by while our agricultural producers bear the brunt of unfriendly tariffs enacted by foreign nations. The programs we’re announcing today help ensure our nation’s agriculture continues to feed the world.” The programs that USDA will use to assist American farmers include the Market Facilitation Program, develop a Food Purchase and Distribution Program, and a Trade Promotion Program. The aid doesn’t require congressional approval but would be provided through the Commodity Credit Corporation.

Ag Groups Respond to Trade Aid for Farmers

The Trump Administration announced a $12 billion plan to provide emergency aid to farmers who are struggling under an escalating trade war with China and other trading partners. While the groups were grateful for the aid, they all pointed out this is a short-term fix to a long-term problem. John Heisdorffer, American Soybean Association President, says the best idea is to expand other markets and develop new ones to buy soybeans that America isn’t selling to China. National Pork Producers Council President Jim Heimerl says the restrictions that American pork faces in critical markets like Mexico and China, the top two export markets last year, has placed U.S. pig farmers in dire financial straights. Farm Bureau President Zippy Duvall says the USDA announcement is substantial but says they cannot overstate the dire situation that farmers face because of lost export markets. Farmers Union President Roger Johnson says the livelihoods of American farmers are on the line with every “tweet, threat, or tariff action that comes from the White House.” Johnson says they appreciate the stopgap assistance, but this plan is a short-term solution to a long-term problem.

House Vote on Guest Worker Bill in Doubt

House Republican leaders appear to be going back on a promise to hold a vote ahead of the August recess on a conservative immigration bill that includes a new guest-worker program for farmers. Back in June, House Majority Leader Kevin McCarthy promised several members there would be a vote. Politico says House Republican leaders now don’t have any plans to take up the guest-worker program before the upcoming summer break. Sources tell Politico that Speaker of the House Paul Ryan doesn’t want to call a bill to the floor that might fail. Dennis Ross, a Florida Republican, says the deal was that the bill would be taken up regardless. “A lack of sufficient votes to pass shouldn’t preclude the promised vote,” Ross says. “Some of us need to go back home and show that we’re doing all we can to do what we said we would do.” Ross says if the bill fails, it fails. More than 200 Ag groups support the bill, including the American Farm Bureau Federation. A McCarthy spokesman says they have every intention of voting on the bill. But “more work needs to be done in order to gather the support necessary to pass the legislation.”

Opposition to Ag Workforce Bill Growing Out West

While House Republican leaders grapple over whether or not to hold a vote on the ag guest-worker program, Western Growers and the California Farm Bureau are strongly opposed to the bill. Western Growers is the largest representative of the fruit and vegetable growers in the country. The Hagstrom Report says the new H-2C program would be for both seasonal and permanent employers but would also require them to use the E-Verify System to make sure workers are in the country legally. Tom Nassif, President and CEO of Western Growers, says the provisions would actually constrict rather than expand the supply of immigrant workers in the country. He says the bill would “enact E-Verify without providing adequate protections for existing farm workers or properly ensuring a sufficient flow of future guest workers.” A touchback provision in the bill would require workers in the country illegally to identify themselves, leave the country, and hope they get new visas. Western Growers and the California Farm Bureau say that’s a non-starter. The two organizations did say that several of the bill’s provisions represent an improvement over the current system. However, they say the imposition of a cap would severely restrict farmers’ access to an adequate supply of employees

Higher Inventory and Tariffs Impacting Cattle Markets

The USDA released the Cattle Inventory, July Cattle on Feed, and July Livestock Slaughter reports last week. The Cattle Inventory report provides the first real estimate of the 2018 calf crop, as well as a look at how rapidly the U.S. cattle herd is increasing. The July first all cattle and calves number was one percent higher than last year, the preliminary estimate of the U.S. calf crop was two percent higher, and the cattle on feed inventory was four percent larger than in 2017. Professor James Mintert of Purdue University looked at the numbers and says lower feed grain prices this fall may lead to more placements of lighter-weight cattle on feed, which will impact fed cattle marketings in 2019 because the lighter weights mean cattle need to stay on feed longer. Cattle slaughter has been two percent higher than last year, picking up speed in May and June. More females are in the slaughter mix, which means herd growth could be coming to an end. Mintert says, “The rise in females in the slaughter mix isn’t large enough to suggest that liquidation is taking place, but it is indicative of waning interest in herd expansion.” Rising tariffs on U.S. meat exports are also expected to have a heavier impact during the second half of 2018.

One Week Left to Complete Census of Agriculture

The National Ag Statistics Service is ending all of its data collection for the 2017 Census of Agriculture on July 31. Anyone who received the Census questionnaire is required by law to respond by that date. They can also fill out the census online at Ag Census Dot USDA Dot Gov. NASS Administrator Hubert Hamer says the Census of Agriculture, which is conducted once every five years, provides the only source of comprehensive agricultural data for every state and county in the nation. “Your information helps ensure that future decisions about U.S. agriculture represent you, your industry, and your community,” says Hamer. “Every response matters, even the ones that tell us you’re not, or are no longer a farm.” He points out that the same law that requires farmers to respond also requires the federal government to keep all of the information confidential. It’s used only for statistical purposes. Data is only published in aggregate form to prevent disclosing the identity of any individual producer or farm operation.

Wheat Organizations Continue to Support an End to Trade War as Administration Offers Help for Farmers

ARLINGTON, Virginia — The Trump Administration announced today that it would provide $12 billion to help farmers cope with the results of the current trade dispute ignited by new U.S. tariffs. 

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are glad that the Administration recognizes farming as a risky business and acknowledges that farmers need help to manage the additional risk from its trade policies. However, our concerns still lie in a lengthy trade war that will cause long-term, irreparable harm to U.S. agriculture. We urge the Administration to recognize this self-inflicted damage and to end the trade war immediately as well as to work within the rules-based trading system in partnership with like-minded countries to address serious problems in the global economy. 

While tariffs aren’t the answer, the wheat industry greatly appreciates the Administration’s efforts to push back on China’s unfair trade practices through dispute settlement cases at the World Trade Organization. The policies being challenged hurt U.S. farmers and have undermined trust in the rules-based trading system. President Trump understands that the farm economy is struggling and is working to improve the livelihoods of growers across the country through these efforts. 
  
Agriculture needs strong trading partners, so we also encourage the Administration to rejoin the Trans-Pacific Partnership and finalize NAFTA negotiations so that the U.S. Trade Representative can focus on new trading partners that will be as important as ever. These actions will have lasting benefits to wheat growers across the country. 
 
To repeat, this damage is self-inflicted, so the Administration is right to take steps to address it, but the next step should be ending the trade war. We will also be closely engaged with Administration officials as the details of the announcement made today are developed.    

Cattle and sheep producers warn Congress that environmental laws are increasingly being misused by fringe activist groups

Washington (July 24, 2018) - Cattle and sheep producers today warned Congress that environmental laws are increasingly being misused by fringe activist groups and pose a growing threat to grazing on federal lands. Their testimony came at a hearing held by the House Oversight and Government Reform Subcommittee on the Interior, Energy, and Environment today held a hearing titled Preserving Opportunities for Grazing on Federal Land.  This hearing comes in response to mounting challenges faced by ranchers who graze livestock on federal land and the opportunities for productive rang management practices.
The testimonies of Dave Eliason, a fourth-generation Utah cattle producer testifying on behalf of the National Cattlemen's Beef Association and Public Lands Council, and John Helle, a third-generation sheep and wool producer from Montana testifying on behalf of the American Sheep Industry Association, pointed out that litigation through the National Environmental Policy Act (NEPA) and the Equal Access to Justice Act (EAJA) had become an unavoidable obstacle for ranchers seeking to put conservation benefits on the ground.
For the sheep industry, a major example has been the loss of grazing over conflicts with agenda-driven activists.  Helle has personally been impacted as pathogen transmission concerns without scientific basis have been used to enforce separation between domestic and bighorn sheep on the Gravely Mountain range of Southwest Montana.
"Our reward for working cooperatively with our state fish and game agency to introduce bighorn sheep was to be subject to what is now going on three years of costly federal litigation," Helle said. "And, if we are to ultimately lose the litigation, we are subject to losing our ability to graze the lands we have grazed for multiple generations. I cannot imagine this scenario is what Congress envisioned when it passed the National Environmental Policy Act."
Another issue impacting farmers and ranchers across the entire United States is the Endangered Species Act (ESA), a law Eliason said has been used as a weapon by extreme environmental groups.
"This litigation-driven focus on listings has derailed true species conservation efforts and rendered the current ESA largely dysfunctional," Eliason, President of the PLC, said. "While well-intended hen first passed over forty years ago, the ESA has evolved into the favorite weapon of these habitual litigants."
These litigants include the Center for Biological Diversity, Defenders of Wildlife, and WildEarth Guardians, which are responsible for 46 percent of active petitions under the ESA. Eliason cites the gray wolf as an a species these groups have used to target the livestock community.
"Despite following the process, doing their homework, and going through the full delisting process, FWS was immediately litigated on their final rule. That litigation ultimately resulted in the rule being overturned." Eliason said. "As a result, the gray wolf remains listed to this day despite exploding populations and increasing predator issues. That's not science, it's a hijacking."
The American Sheep Industry, National Cattlemen's Beef Association, and Public Lands Council recognize the unique roles the livestock industry plays in federal land management and continues to advocate for greater flexibility to manage for conditions on the ground.

Agriculture Secretary announces program to help farmers bearing the brunt of Trump’s trade tactics

Agriculture Secretary Sonny Perdue announced a $12 billion program to help farmers who are currently bearing the brunt of President Trump’s trade tactics. “Today were formally announcing that the Trump administration will be taking several actions to assist farmers in response to the trade damage caused by the illegal retaliatory tariffs that have been imposed on the United States in the past few months,” Perdue said in a press conference on Tuesday. “The programs we’re announcing today are a firm statement that other nations cannot bully our agriculture producers to force the United States to cave in.”According to Perdue, the funds will be paid out through three programs administered by USDA under the Commodity Credit Corporation Charter Act. “This administration will not stand by while our hard-working agriculture producers bear the brunt of unfriendly and illegal tariffs enacted by other nations,” Perdue said. The $12 billion program is “directly in line” with estimated $11 billion impact illegal tariffs are having on farmers, according to Perdue. The programs include a market facilitation program which would result in farmer payments, a food purchase and distribution program which would purchase surplus of goods going to nutrition programs, and a trade promotion program to provide private sector assistance to new markets. “The Trump Tariff Aid plan draws on the financial resources of a program known as the Commodity Credit Corporation (CCC) and Section 32 funding,” said Jim Wiesemeyer Pro Farmer’s Washington policy analyst. “The initiative does not authorize any new money and thus not need approval from Congress. But U.S. taxpayers will see deficits go still higher.” Details MurkyOfficials called this program a "one-time" action. While farmers should be prepared to take advantage of the program, how it will actually work is still unclear.“USDA says it will take some time to develop the needed rules and regulations for the efforts and there will be a Federal Register notice published,” Wiesemeyer said. “There will be a relatively simple signup —producers will need to tell USDA what their 2018 production is for the crops targeted, and that level of what they actually produced times a payment rate and producers would get a payment based on that formula.”Specific details for how the program will work, how the program will be implemented and how farmers can sign up for payments have not been announced. According to USDA undersecretary, Greg Ibach, the details will be released closer to Labor Day when USDA plans to fully implement the program.  “Payments are expected to start going to producers in September and will be also dictated by when the producer actually harvests the crops where the direct payments will be made,” Wiesemeyer said. “That would signal most wheat producers would be first up to receive the payments along with pork and dairy producers.” A Long Road AheadThis announcement came the same day that President Trump sent a tweet expressing his love for tariffs as a trade tactic and prior to a schedule trip to Iowa on Thursday. 

Feedyards post small average profits

A $2 per cwt. rally in cash fed cattle prices last week helped feedyards post small average profits of $4 per head, and erased the previous week’s $43 per head loss. Beef packers saw margins decline $10 per head, according to the Sterling Beef Profit Tracker.The beef cutout declined $2 per cwt., closing at $203.04. The cost of finishing a steer last week was calculated at $1,564, which is $171 higher than the $1,393 a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.A year ago cattle feeders were earning $270 per head. Feeder cattle represent 73% of the cost of finishing a steer compared with 74% a year ago.Farrow-to-finish pork producers saw their margins decline $10 to $22 per head. Lean carcass prices traded at $73.29 per cwt., $4.73 per cwt. lower than the previous week. A year ago pork producers earned an average of $62 per head. Pork packer margins averaged a profit of $11 per head last week.Cash prices for fed cattle are $7 per cwt. lower than the same week a year ago. Lean hog prices are about $14 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. 

USDA announces aid for farmers impacted by trade tariffs

Industry welcomes news but calls for long-term solution.

Agriculture Secretary Sonny Perdue today announced up to $12 billion in programs to aid farmers affected by the retaliatory trade tariffs associated with the ongoing negotiations between the U.S. and China as well as several other countries.

The U.S. Department of Agriculture said a host of U.S. commodities -- including field crops like soybeans and sorghum, livestock products like milk and pork and many fruits, nuts and other specialty crops -- have all been affected. Additionally, the agency said there is evidence that American goods shipped overseas are being slowed from reaching market by unusually strict or cumbersome entry procedures, which can affect the quality and marketability of perishable crops.

As such, USDA will use the following programs to assist farmers:

• The Market Facilitation Program, authorized under The Commodity Credit Corp. (CCC) Charter Act and administered by the Farm Service Agency (FSA), will provide payments incrementally to producers of soybeans, sorghum, corn, wheat, cotton, dairy and hogs. This support will help farmers manage disrupted markets, deal with surplus commodities and expand and develop new markets at home and abroad.
• Additionally, USDA will use the CCC Charter Act and other authorities to implement a Food Purchase & Distribution Program through the Agricultural Marketing Service to purchase unexpected surpluses of affected commodities such as fruits, nuts, rice, legumes, beef, pork and milk for distribution to food banks and other nutrition programs.
• Finally, CCC will use its Charter Act authority for a Trade Promotion Program administered by the Foreign Agriculture Service (FAS) in conjunction with the private sector to assist in developing new export markets for U.S. farm products.

USDA said the program total of up to $12 billion is in line with the estimated $11 billion impact on U.S. agricultural goods. Further details about the exact nature of the relief measures will be unveiled later in the summer, USDA officials said.

“This is a short-term solution to allow President [Donald] Trump time to work on long-term trade deals to benefit agriculture and the entire U.S. economy,” Perdue said.  “The President promised to have the back of every American farmer and rancher, and he knows the importance of keeping our rural economy strong. Unfortunately, America’s hard-working agricultural producers have been treated unfairly by China’s illegal trading practices and have taken a disproportionate hit when it comes illegal retaliatory tariffs.”

He continued, “USDA will not stand by while our hard-working agricultural producers bear the brunt of unfriendly tariffs enacted by foreign nations. The programs we are announcing today help ensure our nation’s agriculture continues to feed the world and innovate to meet the demand.”

Perdue noted that, for decades, China has engaged in unfair practices as well as in the forced transfer or outright threat of intellectual property. “It’s clear to everyone that President Trump has gotten China’s attention like never before,” he said.

“The programs we are announcing today are a firm statement that other nations cannot bully our agricultural producers to force the United States to cave in,” Perdue added.

Long-term solution needed

The U.S. agriculture industry’s reaction to the USDA announcement was mostly positive as many groups expressed appreciation for the “temporary” assistance to farmers. However, several emphasized the necessity of achieving a long-term solution for market restoration to key trading partners.

“The $12 billion package of agricultural assistance announced today by the Administration will provide a welcome measure of temporary relief to our farmers and ranchers who are experiencing the financial effects of the trade war,” American Farm Bureau Federation president Zippy Duvall said. “This should help many of our farmers and ranchers weather the rough road ahead and assist in their dealings with their financial institutions.”

He continued, “We are grateful for the Administration’s recognition that farmers and ranchers needed positive news now, and this will buy us some time. This announcement is substantial, but we cannot overstate the dire consequences that farmers and ranchers are facing in relation to lost export markets. Our emphasis continues to be on trade and restoring markets, and we will continue to push for a swift and sure end to the trade war and the tariffs impacting American agriculture.”

The National Pork Producers Council (NPPC) hailed the news, as pork has been heavily targeted by retaliatory tariffs.

“President Trump has said he has the back of U.S. farmers and today demonstrated this commitment with an aid package to sustain American agriculture cut off from critical export markets as his Administration works to realign U.S. global trade policy,” said NPPC president Jim Heimerl, a pork producer from Johnstown, Ohio.

U.S. pork began the year in expansion mode to capitalize on unprecedented global demand but now faces punitive tariffs on 40% of its exports, he explained. “The restrictions we face in critical markets such as Mexico and China – our top two export markets by volume last year – have placed American pig farmers and their families in dire financial straits. We thank the President for taking immediate action,” Heimerl said.

The National Milk Producers Federation (NMPF), which has been engaged in ongoing discussions with USDA about how to reduce the economic harm caused by the trade disagreements between the U.S. and other nations, said the newly announced plan “should provide badly needed economic assistance to dairy farmers facing significant financial losses."  

“We thank the Administration for incorporating our recommendations. We will continue working with USDA on program details to achieve provisions that are efficient, cost effective and equitable to farmers of all sizes in all regions,” NMPF president and chief executive officer Jim Mulhern said.

NMPF is also encouraging the Administration to conclude the North American Free Trade Agreement negotiations and pursue new trade opportunities, “which is the long-term solution to the current situation. We need this assistance for now, but we also need new trade deals that allow our farmers to reach customers in other nations,” Mulhern said.

Sen. Chuck Grassley (R., Iowa) released a statement saying he doesn’t fault the President for trying to get a better deal for Americans but said it is unfair fair to expect farmers to bear the brunt of retaliation for the entire country in the meantime.

“The President’s announcement of billions of dollars in aid that will be made available to struggling farmers later this year is encouraging for the short term. What farmers in Iowa and throughout rural America need in the long term are markets and opportunity, not government handouts,” Grassley said.

Farm Bureau Joins In Criticism of Navarro On Impact Of Tariffs

White House trade adviser Peter Navarro told CNBC last Thursday that the damage from the trade war so far is no big deal. “We got two economies that add up to around $30 trillion in annual GDP. The amount of trade we’re affecting with the tariffs is a rounding error compared to that,” he said.Navarro's remarks drew a sharp rebuke from Sen. Joni Ernst, R-Iowa.The American Farm Bureau Federation added their views, stating they have watched retaliatory tariffs hit US agriculture especially hard.“Prices for all of our export-sensitive farm goods have tanked since May, when this tariff game started. Farm income was already off by half compared to four years ago, with debt levels rising — hardly a strong position for agriculture going into this trade war,” said the Farm Bureau. “This situation will only worsen as combines roll between now and the fall election season. The nation’s farmers and ranchers support the broader goal of strengthening our overall economy and trade balance, but not at the risk of long-term, irreparable harm to our ag exports and the jobs they create.”

Senate to Soon Name Farm Bill Conferees

Senate will name farm bill conferees today or Wednesday, setting the stage for the conference process to take another step.Senate Agriculture Chairman Pat Roberts, R-Kan., said Monday there will be seven or more likely nine Senate conferees named, far fewer than the 47 House conferees announced last week.Wednesday will likely begin conference negotiations among the four principal negotiators: the chairmen and ranking Democrats on the Senate and House Agriculture committees.When asked what he plans to tell House Agriculture Chairman Mike Conaway, R-Texas, about the Senate bill, Roberts said: “It passed 86-11.”

Washington Insider: G20 Finance Ministers Warn of Global Risks of Trade War

Reports from the G20 meeting in Buenos Aires this week stress that talks by Finance Ministers “to ease an escalating trade war between the United States and the rest of the world sputtered to a close with no breakthroughs” on Sunday. The headline also said that “the predicament over President Trump’s tariffs was casting a pall over the global economy, the New York Times said.“Growth has been less synchronized recently and downside risks over the short- and medium-term have increased,” the meeting’s final communiqué said. “These include rising financial vulnerabilities, heightened trade and geopolitical tensions, global imbalances, inequality and structurally weak growth, particularly in some advanced economies.”The International Monetary Fund projected last week that the currently announced tariffs would reduce global economic output by $430 billion, or half a percent, in 2020, if they remained in place and weakened investor confidence. It argued that the United States was particularly vulnerable to a slowdown because it would bear the brunt of tariff retaliation from other countries.“I urged once more that trade conflicts be resolved via international cooperation without resort to exceptional measures,” Christine Lagarde, managing director of the fund, said on Sunday, referring to the message that she delivered to policymakers in meetings.Steven Mnuchin, the U.S. Treasury Secretary, said he disagreed with Lagarde’s assessment of how the United States would fare. The Trump administration has said the tariffs have hurt certain industries in the United States but, at this point, not the broader economy.The United States is engaged in major trade disputes on three fronts, the Times said. It is attempting to renegotiate NAFTA with Canada and Mexico; it is engaged in tit-for-tat tariffs with China; and it faces a fierce backlash from the European Union over recently imposed steel and aluminum tariffs and the prospect of new duties on car imports.Trump has made restructuring trade pacts and reducing America’s trade deficit a central plank of his economic agenda but his negotiating tactics have angered the country’s allies, the Times said.“World trade cannot base itself on the law of the jungle, and the unilateral increase of tariffs is the law of the jungle,” said Bruno Le Maire, the French finance minister. “We call on the United States to see sense, to respect the rules of multilateralism and to respect their allies.”International summit meetings, which once showcased American leadership, have under the Trump administration become awkward affairs in which the United States is increasingly isolated. That remained the case in Argentina, where Mnuchin traveled on behalf of the United States on a fraught mission of economic diplomacy, the Times reported. Although he said his conversations with other leaders were cordial, he acknowledged that talks on trade were often very “direct.”His trip came a day after Trump lashed out at the European Union and China, accusing them of manipulating their currencies to put the United States at an economic disadvantage. The suggestion had raised concern that a currency war could be on the horizon--but the joint statement reaffirmed the group’s exchange rate commitments.One of Mnuchin’s goals before the meeting was to encourage the European Union, Japan and other countries to work with the United States to pressure China to change its trade practices. However, the Treasury secretary said that no progress was made on that front in multi-country meetings, and that aside from pleasantries, he had no communication with the Chinese delegation.Europe, which is increasingly anxious that President Trump will impose auto tariffs, is taking Mnuchin up on his offer to meet this week. European Union officials, including Jean-Claude Juncker, the president of the European Commission, will travel to Washington for a meeting with Trump and his economic team in hopes that car tariffs can be avoided.The G20 meeting also offered the United States an opportunity to jump-start talks with Canada and Mexico about renegotiating NAFTA. Mnuchin and Bill Morneau, Canada’s finance minister, expressed hope that such talks could gather momentum now that the Mexican election is over. “My job is to continue to be optimistic,” Mr. Morneau said, suggesting that he sensed a desire by the United States to preserve the trilateral pact.However, Morneau warned that tariffs would raise prices on Americans and Canadians and that if Trump levied another round of them, Canada would have no choice but to retaliate again.Besides trade, officials from the countries discussed issues such as cryptocurrencies, international tax and terrorism financing. Although drafting the communique has been a struggle in previous meetings, officials said this one was agreed to with relative ease despite the differences on trade and tariffs.So, we will see. While Secretary Mnuchin pushed back against the premise that the United States had become a pariah in international forums with the comment that he “didn’t feel isolated at all,” the Times said. Still, the Times concluded that the two days of “fitful” talks “appeared only to raise the odds that the friction will intensify as President Trump threatens more tariffs and other countries vow to retaliate. Nonetheless, there are talks scheduled with many trading partners, along with Congressional hearings in the near future—a debate producers should watch closely as it proceeds, Washington Insider believes. 

Senate to Hold Trade Hearing This Week

U.S. Trade Representative Robert Lighthizer will be the only witness to give testimony during a hearing this week before a Senate Appropriations Subcommittee. Lighthizer is one of the key Trump administration members at the center of the president’s trade strategy that’s led to retaliatory tariffs from China, Mexico, Canada, the European Union, and others. Many of those tariffs are hitting the farm sector extremely hard and provoking ag groups and farm-state lawmakers to become much more vocal in their opposition to Trump’s tariffs. The opposition is growing after Trump repeated a threat to add even more tariffs to Chinese goods. He told CNBC that he’s “ready to go to $500 billion.” The U.S. originally hit China with $34 billion in tariffs back in July, but then added another $200 billion to that after China matched the first $34 billion. The escalation was combined with White House Trade Adviser Peter Navarro’s complete disregard for the damage the tariffs are doing to the ag economy, drawing sharp responses from ag leaders. Navarro told CNBC that the trade losses due to Chinese tariffs amounted to a “rounding error.”

Republicans Introduce New Immigration Bill in House

Republicans in the House of Representatives have introduced a new immigration bill that they say will benefit agriculture. A Pro Farmer report says the Agriculture and Legal Workforce Act would take the place of the current H-2A visa program. It would require farmers, as well as all employers, to use the E-Verify Program to make sure that all their workers are in the United States legally. The new bill actually includes some of the same provisions that were in a broader GOP immigration bill that was voted down recently in the House. The bill would authorize up to 450,000 H-2C visas annually, which would be good for three years. There is some controversial language in the new bill that would require those workers to have health insurance. A press release from the House Judiciary Committee says the H-2C program would be available to temporary and year-round agricultural employers. The release also says the bill provides generous visa allocations to ensure that labor needs are met, gives needed flexibility to avoid farm disruptions, eliminates regulatory burdens, and provides effective means of enforcement and monitoring.

Farm Bill in Senate’s Court

Senate Majority Leader Mitch McConnell and Minority Leader Chuck Schumer are expected to appoint their members of the farm bill conference committee this week. Politico says the upper chamber will need to clear some procedural hurdles on the floor before that can officially happen. During the last farm bill debate, 12 senators, including seven from the majority and five from the minority, were appointed to the committee. The task ahead will be to reconcile differences with the House version of the farm bill. These are the final steps before the farm bill reconciliation process can officially get going. The challenge is that House lawmakers leave for the August recess after this week. House Ag Chair Michael Conaway says that even though he won’t be in Washington, he’ll stay in touch with staff members working on reconciling the two versions of the farm bill. McConnell has actually canceled most of the August recess for the Senate, so most of the chamber’s members will be in town for the bulk of the negotiations.

University of Missouri Reports 1.1 Million Acres of Dicamba Damage

University weed scientists from farm country estimate that 1.1 million acres of soybeans have been accidentally damaged by dicamba in spite of stricter usage limits. Those are the latest findings from a University of Missouri report. Damage was highest in the number one soybean-growing state, Illinois, where 500,000 of those 1.1 million damaged acres are located. Arkansas was second with an estimated 300,000 acres. By way of comparison, an agriculture dot com article says there were 2.5 million acres of soybean damage reported at this point in 2017. Agronomy Professor Bob Hartzler of Iowa State University says state officials have received 121 complaints of herbicide drift, compared to 82 complaints in early July of 2017. Hartzler wrote that “The significant increase in pesticide misuse cases during the first part of the growing season indicates a pesticide stewardship problem.” The Environmental Protection Agency gave a two-year license to dicamba, so the agency will soon need to revisit the decision on allowing the use of dicamba.

Large Livestock Loan Drive Rise in Farm Lending

The Federal Reserve’s Agricultural Finance Databook says lending activity in the agricultural sector increased slightly in the second quarter of 2018. The overall number of non-real estate farm loans was roughly two percent higher than at the same time in 2017. The slight increase was supported primarily by larger loans for livestock. In the short term, The Kansas City Fed says higher livestock prices were likely responsible for the increased size of livestock loans, at least in the short term. Looking longer term, the size of livestock loans has been trending higher, suggesting that farm consolidation has contributed to fewer and larger farms with larger lending needs. Increased lending for farming operations comes as the overall risk in the ag sector is increasing. Adjusted for inflation, livestock loans reached a historical high point in the second quarter, while the volume of farm machinery and equipment loans shrank to the lowest second-quarter level in three years. Expectations of larger supplies and trade disputes have contributed to sharp declines in most of the major commodity prices through the month of June. 

Continued Drought Could Lead to Cattle Culling in Southern States

A Texas A & M AgriLife Extension expert says southern beef producers should be planning ahead when it comes to the size of their herds, should the drought continue. Jason Banta says a shortage of forage and hay might mean producers would need to reduce their herd sizes. A plan to cull their herds could save producers money in both the short term and long term. There wasn’t a lot of hay carryover from last year. Because of the drought, this year’s first alfalfa cutting, which is typically one of the best, was below average. The second cutting was also below normal in both quantity and quality. Hay stocks are also low in several other states like Oklahoma, Kansas, Arkansas, and Missouri. Banta says producers should adjust their stocking rates to avoid overgrazing pastures. “It’s probably a good idea to have plans on how to reduce herd numbers to save some forage supplies and reduce the need for hay in the winter,” Banta says. He adds that producers should also be mindful of cow body condition, as keeping weight on easier than recovering lost pounds. Banta also says producers may want to wean calves one to two months earlier than normal to help keep cows in better shape going into winter.