Welcome

Welcome

Friday, September 28, 2018

WTO Members Focus on US Farmer Aid Effort

Questions about the Trump ag trade aid plan, including how long it will run and concerns about its potential to affect global commodity markets, were on display during a World Trade Organization (WTO) Committee on Agriculture meeting held this week.The plan unveiled this summer by USDA to aid U.S. ag producers was aimed providing up to $12 billion to address negative effects of new retaliatory tariffs. The program consists of three facets: The Market Facilitation Program (MFP) which provides payments to producers of commodities hit by the new duties; a Food Purchase and Distribution Program to buy up to $1.2 billion in commodities targeted by retaliation; and the Agricultural Trade Promotion Program (ATP) providing $200 million to help develop new markets for US ag products.USDA has announced the initial phase of MFP payments are expected to total $4.7 billion, with a potential second round to be announced in early December if needed.The primary concerns voiced by WTO members centered on the methodology used to craft the trade aid program, how long it will run and its compliance with U.S. WTO obligations.Australia questioned whether the U.S. accounted for producers who redirected exports to different markets because of new tariffs and whether it could confirm aid provided to such producers would not be used to subsidize those exports.The US responded that “trade diversion does not necessarily mean no damages" and sought to assure other members the aid program is short-term, directed only at mitigating the impact of retaliatory tariffs for 2018 crops and livestock and not intended to subsidize exports or become a public stockholding food program.China and New Zealand expressed concern that due to the aid program, the U.S. risks exceeding its aggregate measurement support (AMS) entitlement limit of $19.1 billion annually required under WTO's Agreement on Agriculture.WTO notifications on the supports are forthcoming, the U.S. noted, adding the programs and support provided by them will not lead the U.S. to exceed its AMS limit.

Washington Insider: Three-Party NAFTA’s Not Dead Yet

Well, U.S. aggies are fully caught up in the U.S.-Canada trade fight and the generally glum outlook for ag exports now in most quarters. However, there’s at least one fairly new theme — Bloomberg says “NAFTA’s not dead yet for Canada if U.S.-Mexico deal moves ahead.”The logic is complex, but Bloomberg says it sees some signs of life. For one, Trudeau is downplaying the urgency of latest deadlines in negotiations, the report says. And, it thinks, Congress could resist the administration’s bid to pursue only a bilateral pact.Still, the Trump administration is set to push forward a Mexico-only NAFTA update as officials from Washington and Ottawa remain at loggerheads despite weeks of face-to-face negotiations to keep the three — country deal. This impasse raises fears the U.S. will leave Canada, its biggest export market, out of the renegotiated bloc, resulting in potential barriers for more than $500 billion in annual cross-border trade.The U.S. is planning to publish the text of its bilateral trade accord with Mexico today, which will likely exclude Canada, Bloomberg says. But it notes that Prime Minister Justin Trudeau doesn’t sound fazed.“We will keep working on a broad range of alternatives, a broad range of paths are ahead of us,” he said Wednesday. “We’re going to keep focusing on trying to get to the right deal for Canadians.”In its coverage, Bloomberg lists “some of the options for the northern nation to preserve its regional trading ties.” The first is that Canada could still join before the deal is signed by Nov. 30, when the current Mexican president leaves office.The countries are in a hurry because, under U.S. trade law, the text of a deal needs to be published 60 days before it can be signed. If Congress turns a blind eye to fudging certain rules, they may be able to. “We’re going to go ahead with Mexico. If Canada comes along now, that’d be the best. If Canada comes along later, then that’s what’ll happen,” U.S. Trade Representative Robert Lighthizer said Tuesday.Some interpreted his comments as a reprieve for U.S.-Canada talks, and “it looks like Canada bought itself a few more weeks,” Bloomberg thinks — but that patience will not be infinite at either White House or in Congress,” according to trade lawyer Dan Ujczo, at Dickinson Wright. “It will be procedurally difficult to shoe-horn Canada in,” he said.The second option is that Congress could intervene. The U.S. began NAFTA renegotiation by triggering a congressional process for a three-country deal. It’s hoping to use that same track to now advance a two-country deal, something key lawmakers have warned won’t fly. That might force President Donald Trump to restart the process, or see Congress simply balk and tell the administration to come back when it has a deal that includes Canada.John Cornyn, R-Texas, the second-ranking Senate Republican, believes it may violate U.S. trade law to try and ram forward with a two-country deal. “That is a really big concern in terms of us getting something approved over here,” he said Wednesday.A third possibility is a separate deal, an idea floated by Lighthizer. This might be accomplished by a “pivot” to separate talks with Canada once the deal with Mexico is approved. “Hopefully, we’ll end up with something with Canada. If not, we’ll have to do it in a separate deal as soon afterwards as we can,” he said on Tuesday. President Trump regularly says he prefers bilateral deals, but that could mean restarting the Congressional clock.Then, Bloomberg says, it is possible to envision “something else.” Amid all this wrangling, the original NAFTA remains on the books. It’s unclear if, or when, the administration will give the required six months’ notice to withdraw from that trade deal, or if it would actually follow through. If that is attempted, yet another fight could loom on Capitol Hill — the U.S. has never quit a major trade deal, and there’s uncertainty over administration powers to do so.For example, Bloomberg says the administration might be able to pull out of the deal, but Congress would need to repeal BAFTA’s enacting legislation. If it doesn’t, Canada would still have some form of the original NAFTA to rely on.So, we will see. It seems clear now that as the US ag sector contemplates the end to part or all of NAFTA, its path to global export growth seems increasingly uncertain—a development that translates directly to significant uncertainty across the sector. This is a fight producers should watch very closely as it intensifies, Washington Insider believes.

U.S. Will Publish NAFTA Text Friday

Bloomberg says the Trump Administration will release the text of a bilateral trade agreement with Mexico on Friday. While the text will likely exclude Canada, it will leave open the possibility of Canada joining the agreement later. U.S. trade law says the text of the deal has to be published 60 days before it can be signed. U.S. Trade Representative Robert Lighthizer says the U.S. is moving forward with the Mexican agreement so the current president can sign it before he leaves office on December 1st. Canada is currently negotiating with the U.S. to join the pact but there are still several issues the two countries haven’t reached an agreement on. Lighthizer says the U.S. doesn’t want to risk having to renegotiate the pact with the incoming president of Mexico. “It wouldn’t be fair to the people involved, certainly U.S. workers, farmers, and ranchers, to start a new negotiation with a new president of Mexico,” says Lighthizer. Trade talks will continue with Canada, even after the deadline passes on Sunday. Lighthizer says the two countries may even carve out a separate deal.

Legislators Call for NAFTA Negotiation Slowdown

Three state representatives are asking U.S. Trade Representative Robert Lighthizer to slow down the pace of the North American Free Trade Agreement negotiations. They feel that gives the U.S. the best opportunity to come to a fair agreement on dairy exports. Representatives from Wisconsin, Washington, and New York all represent states that need open-market access to Canada in order to support their dairy exports. Milk Business Dot Com says there hasn’t been any substantial progress in accessing the Canadian dairy market or dismantling their Class 7 pricing system. Wisconsin and New York dairy farmers were hit the hardest when Canada implemented its Class 7 milk pricing system in the spring of 2017. As dairy prices across the U.S. remain low, the three representatives say their farmers are depending on access to the Canadian market in order to sell their “world-class dairy products.” In their statement, the legislators say, “We urge Ambassador Lighthizer to stop rushing the NAFTA negotiation process and focus on getting the best deal with both Canada and Mexico.” They add the arbitrary deadlines the administration says it faces are its own. “We should not be rushed to complete NAFTA negotiations at the expense of a good outcome,” they say.

Lame-Duck Session a Risk for Farm Bill Passage

The current farm bill is set to expire on Sunday. Top lawmakers now admit they will likely have to finish putting together a new farm bill after the November 6th midterm election. Politico says the timing isn’t surprising to most observers. There’s been a lot more sniping between House and Senate negotiators than there have been signs of progress over the past month. Failure to meet the September 30th deadline is a defeat for ag leaders who said they were determined to finish a new farm bill before the current one expired in order to give needed certainty to farmers and ranchers. Senate Ag Chair Pat Roberts says he hopes negotiations will make enough progress to vote on a final farm bill the week after the election. However, political leverage could shift significantly if Republicans lose control of the House and Senate. Some members of the farm bill conference committee are warning that waiting until November will add a whole lot more challenges to the negotiations. North Dakota Senator Heidi Heitkamp says there “may not be the political will to get it done” after the midterms. Not a single farm bill title had been finalized through the middle of this week.

White House Considers Limits on Biofuel Trading for E15 Deal

Three sources familiar with the discussion told Reuters that the Trump Administration is considering limits on trading biofuels credits. The goal would be to discourage speculation and reduce costs for oil refiners to comply with U.S. biofuels policy. The sources also told Reuters that an announcement could be made in the weeks ahead. The move would be part of a deal to help U.S. corn farmers and biofuels producers by lifting a ban on the summer sales of higher ethanol blends in the nation’s gasoline. President Trump has repeatedly said he supports the lifting the ban on the year-round sale of E15 to help expand the market for corn. However, lifting the ban could also draw legal challenges from the oil industry, which worries that such a move could eat into their market share. The White House is considering capping the number of credits a dealer can hold at 120 percent of their company’s annual compliance obligation. It’s also considering restricting certain parties from holding the credits for more than 30 days.

Groups Ask Court to Halt WOTUS Nationwide

A broad coalition of groups, including the American Farm Bureau Federation, asked a Georgia federal district court to expand a prior order delaying WOTUS implementation. The groups asked the U.S. District Court in southern Georgia to extend its previous injunction to the 22 states that are currently subject to the “controversial and unlawful” rule. The filing was prompted by another court’s decision to strike down an Environmental Protection Agency rule that delayed application of the Waters of the U.S. Rule. In addition to the Georgia court, federal courts in North Dakota and Texas have blocked the WOTUS rule in specific states. The combined court decisions left only 22 states subject to the 2015 rule. If the Georgia court should grant the groups’ request, the WOTUS rule would be blocked from implementation in all 50 states. The court filing says one of the many problems with the rule is the “hodgepodge” of states in which the federal rule is applicable. “This is a deeply troubling state of affairs,” the motion says. “A rule this fundamental to the Clean Water Act’s regulatory scheme should not apply in a patchwork manner.” 

USDA Wants Comments on Dairy Food Labeling

The National Milk Producers Federation welcomes the Food and Drug Administration’s request for public comments on dairy foods labeling. NMPF CEO and President Jim Mulhern says this group is hopeful that this will finally end the misleading practices of plant-based foods imitating real dairy products. The organization will provide additional perspective in explaining why the agency must enforce its own labeling regulations and limit the standardized use of dairy terms to products that come from animals. “We are pleased that after years of engagement, the FDA has finally acting on our concerns that these plant-based products are inappropriately marketed to consumers,” Mulhern says. “Plant-based products are packaged, merchandized, and sold in the same way as real dairy foods. However, they provide fewer nutrients and therefore cannot be considered suitable substitutes.” The concern over accurate labeling is a concern not just about nutritional equivalence and public health. Mulhern says a food identified by a certain standard is more than just a collection of nutrients. “Just adding plant protein, calcium, and a few other ingredients doesn’t make it milk,” Mulhern says.   

Western Ranchers Recognized by BLM During PLC Annual Meeting

PARK CITY, UTAH (September 27, 2018) – The Bureau of Land Management (BLM) 2018 Rangeland and Sagebrush Steppe Stewardship Awards were presented Thursday during the Public Lands Council (PLC) 50th Annual Meeting in Park City, Utah. The awards recognize the effort of individuals and organizations who are dedicated to improving the health and productivity of public rangelands.   

Recipients of the 2018 Rangeland Stewardship Award included Larry and Pennie Hooper, who operate on the Red Mountain lease in New Mexico, and Richard Ward, who operates on the Jim Sage allotment in Idaho. These recipients were nominated by their local field offices for their unique approach to protecting, restoring, and enhancing rangeland.

“Everyone who spends time on public lands reaps the benefits of ranchers’ environmental stewardship,” said Dave Eliason, President of the PLC. “It is important to recognize the work of cattle and sheep producers and understand their role in ensuring the health of our rangeland. There is great potential when we work with agency partners to achieve shared rangeland and management goals. I want to thank the Bureau of Land Management for recognizing these individuals.”

The awards represent one way the BLM recognizes the contributions of public lands ranchers. Other initiatives, like outcome-based grazing projects, also allow the BLM to work with public lands ranchers to explore a variety of innovative approaches to land management. Projects such as these provide managers and grazing permit holders greater flexibility in the management of permitted livestock while emphasizing ecological, economic and social outcomes in cooperative management of public lands.

“The contributions of public lands ranchers matter, and it’s wonderful that rangeland improvements and the benefits of livestock grazing on public land is being recognized by our friends in government,” Eliason said.

Environmental Litigation Reform Needed Restoring balance to environmental litigation

Environmental Litigation Reform Needed Restoring balance to environmental litigation is vital to America’s farmers and ranchers.  America’s farmers and ranchers embrace an ethic of resource conservation while producing food and fiber. But they are frustrated by inequity and lack of transparency in environmental activist groups’ misuse of litigation fee-shifting laws, according to the American Farm Bureau Federation. Testifying today before a congressional subcommittee, AFBF Director of Congressional Relations Ryan Yates said the need for oversight and reform regarding environmental litigation cannot be overstated. Yates told the House Committee on Oversight and Government Reform’s Subcommittee on the Interior, Energy and Environment that a review of how environmental organizations take advantage of the legal system is ripe for timely review. Yates said the misuse of federal fee-shifting statutes by environmental groups has had harmful consequences that Congress never intended. Yates said the Equal Access to Justice Act and other fee-shifting statutes were intended to rebalance the scales and restore equity to the “David-vs-Goliath” task individuals and small businesses and organizations face when suing the federal government. However, he told members of Congress that this principle has been abused in a way that greatly surpasses the measure’s intent of protecting individual rights when holding government accountable. “Congress wanted to make it possible to challenge an unjust cost or penalty, or an unjust denial of hard-earned benefits, without paying more in attorneys’ fees than what an individual would stand to lose or gain in litigation [against the government]. But almost 40 years on, the result is anything but equitable,” Yates said. He detailed examples where attorney fee awards in environmental litigation have “gone off the rails” regarding transparency, fairness, and cost. Yates also said citizen-suit provisions in many environmental laws allow for fee shifting, and those fees come out of an unlimited judgment fund pool, instead of agency budgets. In the 2016 fiscal year, that fund paid out more than $3.8 million in attorney fees for environmental litigation alone. Yates encouraged members of Congress to restore requirements to track and report attorney fees paid in litigation and make that reporting more transparent by posting it online. “To fully understand what is necessary to reform fee-shifting statutes, taxpayers need to know where their money is going,” Yates said. Additional safeguards should also ensure more fairness. Yates said courts have interpreted current law “in a way that overwhelmingly favors environmental groups in terms of their ability to recover attorneys’ fees—and recover handsomely, even without prevailing on the merits of their claims.” A last-minute “technical change” to the law, for example, allows certain non-profits, including most environmental organizations, to recover their legal fees regardless of the wealth held by those organizations. According to Yates, this exception “means that environmental groups funded by millionaires can get taxpayer dollars to sue the government, whereas those millionaires would have to pay if suing on their own.” Such groups often recover fees even if they fail to prove the government was in the wrong. According to Yates, a “prevailing party” recovering fees from the government has come to mean “essentially anyone who gets the government to do something it wants, whether or not a judge has actually determined that the agency made an error.” This was not the purpose of the law, which was to compensate litigants who hold the government accountable for misdeeds. 

National Farmers Union Presses Call For Officials To Formalize Definition Of Protein Products

The National Farmers Union (NFU) has sent a letter to the Food and Drug Administration (FDA) pressing its call for federal officials to formalize the definition of protein products that are not derived from livestock and currently are labeled as cell-cultured “meat.”The group is asking FDA to develop a consistent “standard of identity” for “meat and related products to prevent mislabeling of food in the marketplace.” In the letter NFU President Roger Johnson said the common names given to meat and animal products are widely understood by consumers to be the tissue or flesh of animals that have been slaughtered for food. Therefore, the NFU “opposes labeling of foods produced using cell culture applications as ‘meat’ and as related products such as ‘beef,’ ‘poultry’ and ‘seafood,’ ” he wrote.Johnson said the topic is a concern for the NFU because of “extreme consolidation in the beef, pork and poultry industries, which has diminished family farmers’ and ranchers’ market share.”The letter to the FDA is the NFU’s second request calling for a U.S. government agency to clarify how to distinguish products derived from food animals from those created in a laboratory. Earlier this year, the NFU, National Cattlemen’s Beef Association, U.S. Cattlemen’s Association and Nebraska Farm Bureau sought clarification on the issue from USDA. In May, Missouri lawmakers passed legislation prohibiting products not derived from harvested animals from being marketed as meat. 

FDA wants to know how much consumers know about dairy products

The FDA wants to know how much consumers know about dairy products, and how that knowledge translates to products labeled as milk but made from soy, peas or nuts. A Request for Information was issued in the Federal Register to solicit public comments and feedback on the issue.“Consumers should be able to know at a quick glance what type of product they’re purchasing for themselves and their families,” says FDA Commissioner Scott Gottlieb in a statement on the topic. “We’re interested to know if consumers are aware of, and understand, the nutritional characteristics and differences among these products [plant based dairy alternatives], and between these products and dairy, when they make dietary choices for themselves and their families.”According to Gottlieb, the public comments will help inform the development of draft guidance to provide greater clarity on appropriate labeling of plant-based alternatives. He says FDA is currently assessing products to determine whether labels are misleading consumers in a way that would prompt the department to take action to ensure consumers are not being misled into thinking that their plant-based beverage is a dairy product in disguise.“We welcome the public comment request by the U.S. Food and Drug Administration that we hope will finally curtail the misleading labeling practices of plant-based foods imitating real dairy products,” says Jim Mulhern, president and CEO of the National Milk Producers Federation, in a prepared statement. “NMPF will provide additional perspective explaining why the agency must enforce its own labeling regulations and limit the use of standardized dairy terms to products that come from an animal.”The Request for Information will accept comment through November 27, 2018. To comment, click here and follow instructions.

Mercerization Project Developing Wool Baselayers for U.S. Army

The American Sheep Industry Association continues to be active in the research and development of new, innovative wool products for the United States military. ASI was a awarded a new R&D contract on Sept. 12 with the United States Army to develop three new American wool fabrics for possible use as baselayers in the Cold Temperature and Arctic Protection System. 

The wool for these prototype fabrics will be "mercerized" using a process developed by ASI Education and Technical Services Consultant Roy Kettlewell, and already in global use. The mercerization process reduces the "prickle factor" of wool allowing a broader micron range than normal to be used for baselayer garments. Mercerization is a new product in the United States, which can be processed on the Superwash equipment purchased by ASI and the Sheep Venture Company. The Superwash line is located at Chargeurs Wool USA in Jamestown, S.C. 

In addition to the Army, ASI and Chargeurs, Kentwool and Clover Knits will also be participating in this project.  

Thursday, September 27, 2018

Seventeen months of estimating U.S. ending corn and soybean stocks for 2017-18 comes to an end with USDA's September 1 Grain Stocks report on Friday

At 11 a.m. CDT on Sept. 28, USDA will issue both the Grain Stocks report and a Small Grains Summary.CORNBack on May 10, 2017, USDA's World Agricultural Supply and Demand Estimates (WASDE) report issued its first estimate of U.S. ending corn stocks for the 2017-18 season, settling early on 2.110 billion bushels (bb). As it turned out, that was a pretty good guess this time around. Dow Jones' survey of analysts expects USDA to show 2.002 bb of corn on hand as of September 1, 2018 -- the final inventory of the 2017-18 season.In this case, two wrongs did make a right as USDA's original production estimate was low by 539 million bushels (mb) and the total use estimate was short by 635 mb. Of course, it is possible that a surprise may be waiting in Friday's numbers, but there is no denying the pace of corn exports was strong in the second half of the season.If Dow Jones' survey is correct, fourth quarter corn demand will have hit a record high 3.304 bb, and demand for the entire season will have reached a new record high of 14.935 bb. Credit for corn's new popularity goes to a combination of lower production from South America in early 2018 and a healthy increase in world demand for corn as world incomes are rising. Those same factors are likely to keep U.S. corn demand healthy into the first half of 2019.SOYBEANSUSDA's initial WASDE estimates for soybeans in May 2017 did not show the same good luck USDA had for corn. USDA's initial 480 mb estimate of U.S. ending soybean stocks in May was 86 mb too high, 22% above the 394 mb that Dow Jones' survey expects to see on Friday. If accurate, this will be the 23rd time in the past 28 years that USDA's initial estimate of U.S. ending soybean stocks was too high -- a problematic bearish bias that has unduly punished U.S. soybean prices early in USDA's estimating process.In the case of 2017-18, USDA's bearish start can be traced largely to an initial estimate of 435 mb of beginning soybean stocks that was later adjusted to just 302 mb. If Dow Jones' survey proves correct Friday, total soybean use in 2017-18 will have achieved another record high of 4.321 bb. Even more astonishing, record fourth quarter demand of 828 mb looks likely, in spite of the 25% tariff China enacted on July 6.WHEATIf you are looking for higher wheat prices, Friday's reports probably won't help. Dow Jones' survey pegs September 1 stocks of U.S. wheat at 2.35 bb, up from 2.266 bb a year ago. If true, that will mean first quarter wheat demand only totaled 762 mb in 2018-19, the lowest start in seven years.Keep in mind USDA is currently expecting wheat exports to be up 14% in 2018-19, so it is quite possible Friday's report will also lead to a bearish adjustment in USDA's next WASDE report on Oct. 11.As far as USDA's Small Grains Summary goes, only small tweaks to the production estimates for the various categories of U.S. wheat are anticipated. According to Dow Jones, all wheat production will come in at 1.871 bb Friday, a slight decline from the current estimate of 1.877 bb.Winter wheat production is expected at 1.188 bb, HRW wheat at 661 mb, SRW wheat at 290 mb, white winter wheat at 237 mb, other spring wheat at 610 mb and Durum at 72 mb -- all very close to current estimates.USDA's quarterly grain stocks reports have been known to have big price impacts, but in the specific case of September grain stocks, we haven't seen a dramatic move since 2013 when December corn fell 12 1/2 cents and November soybeans dropped 37 cents on report day. You never know for sure, but a dramatic surprise in this year's numbers doesn't seem likely.**Come back Friday as DTN reporters will be standing by, ready to post all the most interesting details of USDA's numbers after they're released at 11 a.m. CDT. At noon CDT, join DTN's post-report webinar where I will be explaining what the day's numbers mean to grain prices. 

Deadline Weekend Likely to Pass with Little Farm Bill, NAFTA Progress

The farm bill and the North American Free Trade Agreement seem certain not to meet the weekend deadline, leaving more uncertain times for agriculture. Negotiators were trying to reach an agreement on the farm bill this week, but the clock is all but out of time as the current bill expires Sunday. Monday means critical trade programs will not have funding, including the Market Access Program and the Foreign Market Development program, seen as key units of USDA given the current trade climate. Leaders of the farm bill conference committee met Wednesday and are not ready to offer an extension on the current farm bill. House Agriculture Committee chairman Mike Conaway says “the world didn’t stop turning” when previous farm bills expired without a new law in place. Conaway told Politico “putting this off makes no sense whatsoever,” adding “the decisions to be made are on the table.” Adding further uncertainty, the U.S. is likely to forge ahead with its handshake agreement with Mexico on NAFTA, leaving Canada behind, for now. Regarding NAFTA, dairy is one of the main holdups, as the U.S. wants better market access.

U.S. Says Canada Not Making Needed NAFTA Concessions

U.S. Trade Representative Robert Lighthizer charges Canada is not making needed concessions to strike a deal on the North American Free Trade Agreement. As the U.S. ideal deadline will pass this weekend, the U.S. is gearing up to move forward with a Mexico-only agreement. Lighthizer said there was “some distance” between the two sides on issues such as access to Canada’s dairy market and how best to settle trade disputes, according to AgCanada. Lighthizer says the U.S. believes the concessions are “essential” to reaching an agreement. President Trump has demanded changes in NAFTA, including making dairy a top priority, asking for more market access to Canada, and an end to the Class 7 product dumping on the global market. The Trump administration says the text of a deal is needed by Saturday to allow the Mexican government to sign it before leaving office on November 30th.

U.S., Japan, Agree to Negotiate Trade Agreement

The United States and Japan announced Wednesday the two nations would seek a free trade agreement. President Donald Trump and Japan’s Prime Minister Shinzo Abe (Sheen-zoh-ah bay) announced the two nations will soon begin negotiations. Japan has previously feared a bilateral agreement, and instead urged the U.S. to rejoin the Trans-Pacific Partnership. Japan is thought to block opening of its agricultural markets to the U.S. through a two-nation pact, and instead opt for TPP. Following the announcement, Agriculture Secretary Sonny Perdue stated the talks are “welcome news since we know that export income is critical to the financial health of agriculture and is a key contributor to rural prosperity.” Perdue called Japan an important customer for U.S. farmers and ranchers. Perdue also called the announcement “proof” that President Trump’s approach to trade will “benefit our entire economy, including the agricultural sector.”

China Passing on U.S. Soybeans, Purchasing from Brazil

China soybean processors are purchasing record volumes of Brazilian soybeans and cutting purchases of U.S. soybeans. U.S. soybeans face steep tariffs in China thanks to the ongoing tit-for-tat trade war between the U.S. and China. A Singapore-based trader told Reuters that China is “willing to pay higher prices for Brazilian beans than what domestic crushers are paying.” Brazil’s typical soybean export season ends in September, and the U.S. provides to the market through March. However, China is importing a record 14 million metric tons of Brazilian soybeans for arrival in October and November. In 2017, Brazil shipped just under nine million metric tons of soybeans to China in the final quarter, which was the previous record. Brazil is the world's top soybean exporter and the United States is the second top exporter. U.S. farmers are harvesting an estimated record soybean crop this year, but China has purchased just a fraction of soybeans from the U.S. compared to its long-term average.

Cargill CEO Concerned with Long-Term Health of Ag in Trade Dispute

The CEO of Cargill says he is concerned with the long-term health of U.S. agriculture due to impacts from the U.S.-China trade dispute. Cargill CEO David McLennan told Bloomberg News a long-term dispute with China could squeeze the U.S. out as China turns to other sellers of soybeans, as the nation is doing now. Soybean prices are near the lowest levels in a decade as a result of the trade war and an expected record crop in the U.S. this fall. MacLennan of Cargill spoke with Chinese leaders over the summer who told him the country “wouldn’t back down.” He says speculatively, that means China will find alternative sources of supply, but concedes “price can drive a lot of different decisions.” Cargill is spending more time with lawmakers and government officials expressing desire to see a swift end to the trade war. MacLennan says Cargill recognizes the goal of the Trump administration to make trade more fair and balanced, but says “we just think there are other tactics that can be pursued to improve trade relations."

Kansas Representative Exploring Ways to Trade with Cuba

A U.S. representative is seeking ways to open markets with Cuba. Roger Marshall, a Republican from Kansas, spoke with Cuba’s President earlier this week. The two discussed trade opportunities between Cuba and the U.S., a priority over the last few years for U.S. agriculture and more-so given the current trade climate. Marshall says the U.S. “can and should be Cuba's number one supplier of commodities like sorghum, soy, wheat, and corn." Currently, Cuba imports roughly 80 percent of its food from Europe, Latin America and Asia. Marshall says Cuba represent a "significant opportunity" that the U.S. is missing because of "outdated and unnecessary restrictions, at a time when farm country needs new markets the most.” Marshall supports eliminating outdated restrictions between the U.S. and Cuba, and cosponsored the Cuba Trade Act, Americans Freedom to Travel to Cuba Act, and the Cuba Agricultural Exports Act. 

USDA announces four overarching goals for increasing animal disease traceability

USDA announced four overarching goals for increasing animal disease traceability to protect the long-term health, marketability and economic viability of the U.S. livestock industry.Greg Ibach, under secretary for USDA’s Marketing and Regulatory Programs, said a comprehensive system is needed for the best protection against a potentially devastating outbreak like foot-and-mouth disease.“We have a responsibility to these producers and American agriculture as a whole to make animal disease traceability what it should be—a modern system that tracks animals from birth to slaughter using affordable technology that allows USDA to quickly trace sick and exposed animals to stop disease spread,” Ibach said in a statement.USDA’s four goals for increasing traceability are:Advance electronic sharing of data among federal and state animal health officials, veterinarians and industry, including sharing basic animal disease traceability data with the federal animal health events repository (AHER).Use electronic ID tags for animals requiring individual identification to make the transmission of data more efficient.Enhance the ability to track animals from birth to slaughter through a system that allows tracking data points to be connected.Elevate the discussion with states and industry to work toward a system where animal health certificates are electronically transmitted from private veterinarians to state animal health officials.  TimetableUSDA will begin implementing the goals in fiscal year 2019. The agency said it will work with states and industry to establish appropriate benchmarks to show progress.Electronic tagsUSDA said it will not dictate the use of a specific tag technology. Electronic ID tags will allow animals to move more quickly through ports, markets and sales, and will also help ensure rapid response when a disease event strikes, the agency said. To assist with the transition to electronic ID, USDA said it is ending the free metal tags program and instead offering a cost-share for electronic tags.The goals stem from a State and Federal Animal Disease Traceability Working Group that developed 14 key points for advancing traceability, USDA said. They also are in line with feedback the Animal and Plant Health Inspection Service (APHIS) received at stakeholder meetings held across the country. USDA said it is committed to continued discussion and collaboration to ensure traceability efforts are coordinated across the country. 

Trump administration will publish the text for its bilateral trade deal with Mexico on Friday

The Trump administration will publish the text for its bilateral trade deal with Mexico on Friday, which will likely exclude Canada but leave open the possibility for the country to join the agreement later, three people familiar with the matter said.Under U.S. trade law, the text of the pact has to be published 60 days before it’s signed. U.S. Trade Representative Robert Lighthizer said Tuesday that the U.S. is moving forward with the pact by Sunday so current Mexican President Enrique Pena Nieto can sign it before leaving office on Dec. 1. Canada, in negotiations with the U.S. to join the agreement, has been unwilling to make concessions and there are still significant differences over several issues, said Lighthizer.The U.S. doesn’t want to risk having to re-negotiate its bilateral pact with the incoming administration in Mexico, led by President-elect Andres Manuel Lopez Obrador, he said.“If we push it beyond that date then we have a new negotiation with Lopez Obrador and we don’t know where that would go at all,” Lighthizer said at the Concordia annual summit in New York. “It would be unfair to all the people that have been involved, certainly the U.S. workers, farmers and ranchers, to start a new negotiation with a new president of Mexico.”Lighthizer said on Tuesday that trade talks with Canada will continue even after the Sunday deadline. The U.S. and Canada may even carve out a separate deal, he said.Brief ReceptionLighthizer didn’t meet with his Canadian counterpart, Foreign Minister Chrystia Freeland, on the sidelines of the United Nations General Assembly this week. President Donald Trump and Canadian Prime Minister Justin Trudeau had a brief greeting in New York Tuesday, indicating lingering resentment.Lighthizer on Thursday will brief the House Ways and Means Committee with jurisdiction over trade and other House committees on the status of the talks to revise the North American Free Trade Agreement, two of the people said.Lighthizer’s office didn’t respond to a request for comment.The U.S. business community and members of the U.S. Congress have said they want Nafta to remain a three-way deal, as some key Republican lawmakers put pressure on Canada to make concessions to stay in the trading bloc. Congress gets the final vote on the agreement.Trudeau said Wednesday that Canada has a “broad range of paths” ahead of it in Nafta talks but will continue to work toward a trilateral deal. Canada’s ambassador to the U.S., David MacNaughton, speaking to reporters in Toronto Wednesday, said Canada is looking for protection from tariffs the Trump administration has threatened. He also listed other issues of disagreement, including dairy market access and dispute settlement panels.“I don’t like playing chicken with the future of the Canadian economy,” MacNaughton said. 

Public Lands Council Annual Meeting and 50th Anniversary Celebration Kicks Off in Park City

(PARK CITY, UTAH – September 26) Hundreds of cattle and sheep leaders from across the West gathered in Park City, Utah today to kick off the Public Lands Council (PLC) 50th Annual Meeting. The meeting, which will run through Saturday, provides a platform for members to set priorities for the upcoming year and hear updates from prominent policy leaders, elected officials, and national and state affiliates.
 
But 2018 provides an additional exciting draw – an opportunity to celebrate the organization’s 50th anniversary.
 
“The Public Lands Council’s Annual Meeting is the preeminent western public lands gathering in the nation. It provides a needed venue for setting industry priorities for the coming year,” Ethan Lane, Executive Director of the Public Lands Council said. “While our focus is always on the grassroots policy process that is the backbone of our organization, the meeting has built in time to reflect on the rich history of public lands ranching and enjoy beautiful Park City.”
 
The Wednesday evening welcome barbeque kicked off the event on a historical note, highlighting many of the organization’s milestones over the past five decades.
 
“We have numerous PLC past presidents and leaders in attendance this year, along with a number of first-time attendees. Bringing these individuals together is to reflect on the organization is inspiring - It demonstrates the dedication of past generations of ranchers that advocated for our industry and illustrates the bright future ahead of us,“ Dave Eliason, Utah rancher and President of the PLC.
 
The agenda for Thursday and Friday features several high-profile speakers, including: Aurelia Skipwith, Deputy Assistant Secretary for Fish, Wildlife and Parks, Department of the Interior; Brian Steed, Deputy Director of Policy and Programs, Bureau of Land Management; Vicki Christiansen, Interim Chief, U.S. Forest Service; Brad Little, Lt. Governor, State of Idaho. Friday will also feature the President’s Banquet, which will be held at the Red Pine Lodge at the Grand Summit Resort. The meeting will wrap up Saturday with a range tour of two grazing allotments operated by Rowdy Fitzgerald and John Blassard.
 
“I appreciate the hundreds of ranchers who have taken time away from their operations to celebrate the Public Lands Council and ensure industry success for the long term,” Eliason said.
 
The annual meeting is open to all western ranchers who hold grazing permits and stakeholders of the public lands ranching industry. The PLC Annual Meeting and 50th Anniversary Celebration agenda, online registration, and other details are available online.

Wednesday, September 26, 2018

September 30 Farm Bill 'Deadline' Not Likely To Be Met

Senate Ag Chairman Pat Roberts, R-Kan., said this week that Congress will not clear a new farm bill before the current law expires September 30."I am afraid we are going to go past the September 30 date,” Roberts told reporters. “Miracles can happen. We are not giving up.” However, he said he did not want to talk of an extension as that would cause still-more delays in getting the bill done.Roberts said the four ag panel leaders reconciled differences in the commodity title but are awaiting a score from the Congressional Budget Office. Indications are those changes would let producers in drought-hit areas to update yields, but there would also be a provision barring those who have not planted their base acres to a covered commodity since 2009 to no longer claim any farm program payments.Roberts said no agreement is yet in place on work requirements and waivers relative to the Supplemental Nutrition Assistance Program (food stamp) policy. “I think if we could get the waiver challenge behind us, working with the administration, that would be very helpful. If we do that, I think we could get ourselves to a farm bill,” Roberts said.

USDA's Perdue Lays Out NIFA/ERS Move Timeline

USDA Secretary Sonny Perdue sought to reassure top ag lawmakers about USDA’s plan to relocate the Economic Research Service (ERS) and National Institute of Food and Agriculture (NIFA) out of Washington.A six-page letter to Senate Agriculture Chairman Pat Roberts. R-Kan., and ranking member Debbie Stabenow, D-Mich., responds to questions from the two senators about USDA’s proposal.Regarding the lack of cost/benefit analysis, Perdue said there is not enough data yet to project how many staffers will leave, but said USDA will pursue a “focused hiring effort” between June and December 2019 to re-fill those positions. Perdue dismissed criticisms that moving ERS from an independent research arm to under the Office of the Chief Economist (OCE) would make it vulnerable to political influence.“We are confident that ERS will remain a trusted and objective source of information for the food and agricultural sector and provide policy relevant analyses with better coordination within OCE,” he wrote.USDA wants to choose the new locations by January and open them by June. Potential sites have until October 15 to let USDA know they are interested.

Washington Insider: Better Tracking for Food Products

One of the most persistent food industry problems is exposure to contamination that sickens consumers. Even prominent national firms have suffered costly incidents recently and the industry has been reluctant to commit to increased surveillance because of its cost and impacts on the supply chain. This week the New York Times is reporting that a major firm is trying an unusual approach.It says that when dozens of people across the country got sick from eating contaminated romaine lettuce this spring, Walmart did what many grocers would do: It cleared every shred off its shelves, just to be safe.However, Walmart now claims “a better system for pinpointing which batches of leafy green vegetables might be contaminated.” After a two-year pilot project, it announced this week that it would be using a blockchain — the type of database technology behind Bitcoin — to keep track of every bag of spinach and head of lettuce.By this time next year, more than 100 farms that supply Walmart with leafy green vegetables will be required to input detailed information about their food into a blockchain database developed by IBM for Walmart and several other retailers exploring similar moves.The burgeoning blockchain industry has generated a great deal of buzz, investment and experimentation, the Times says. Central banks are exploring whether it would be good for tracking money flows and developing countries are considering such a system for food. Eastman Kodak has explored a blockchain platform that could help photographers manage their collections and record ownership of their work, while a group of reporters and investors are using the technology to start a series of news publications.But essentially the only real-world uses have come from cryptocurrencies like Bitcoin, which use their own blockchains to store transactions, NYT says. Walmart is now trying to bring blockchain into the lexicon of everyday consumers. “It is the first real instance of doing this at scale,” said Brigid McDermott, vice president of IBM Blockchain.For Walmart, the initiative fits squarely into two key strategies: bolstering its digital savvy and emphasizing the quality of its fresh food to customers. The blockchain could also save Walmart money. When another food-borne illness hits—like the E. coli outbreak affecting romaine—the retailer would only have to discard the food that was actually at risk.The Times notes that the technology faces questions from critics, who are skeptical of whether the blockchains being developed by corporations are all that different from old-fashioned online databases.The original blockchain was the online database on which all Bitcoin addresses and transactions were stored. The database is maintained and stored by a network of volunteer computers, so that no single institution, like a bank, is required to keep the records. Because several computers have the records, it is much harder to change or fudge the data after the fact.Many large global corporations have been studying how they might use a similar database design to keep records among a wide array of parties — like the hundreds of people involved in moving spinach from the farm to the grocery shelf. The system that Walmart is using, IBM Food Trust, has been developed for consumer companies, including Dole, Wegmans and Unilever, to track products moving through the supply chain.At each stop along the way, Walmart will require an entry on the blockchain, signing off when handlers receive it and then when they move it on. IBM and Walmart say they are already tracking other products like yogurt and poultry on the system.Blockchains are supposed to make it possible to keep updated databases without any central authority in charge. But currently, all of the records for the Walmart blockchain are being stored on IBM’s cloud computers, for Walmart’s use. That has led to questions about why a distributed database like a blockchain is even necessary.“The idea is right but the execution seems off,” said Simon Taylor, the co-founder of 11:FS, a consulting firm that advises companies on blockchain adoption. “IBM took new tech that doesn’t need a middleman and made themselves the middleman.”McDermott said that the data would be encrypted in a way that will make it impossible for IBM to access or change it. Still, blockchain information tends to be limited. It can capture the digital record of a box of spinach. But cannot tell if someone opened the box and changed the spinach inside. “Blockchains won’t protect you from fraud,” said David Gerard, author of Attack of the 50 Foot Blockchain. “You need human inspectors who know the scams.”Walmart says its blockchain will allow it to track food from the field, through washing and cutting facilities, to the warehouse and finally to the store. It will even be possible to pinpoint which part of the field and at what time the vegetables were harvested.Frank Yiannas, vice president of food safety at Walmart, said the retailer is focusing on leafy green vegetables because, along with beef, they tend to have the highest incidences of contagion. “We can bring trust to the system,” he said.Well, we will see. It is clear that challenges remain before the desired degree of safety is achieved in the U.S. food chain — but the level of detail promised by the new technology seems to promise better security and faster recovery when problems occur. This is a development producers should watch that could lead to better industry performance, Washington Insider believes. 

NCBA Contest Seeks Cowboy Poets

A talent in poetry will win one cattleman or woman a trip to the 2019 Cattle Industry Convention & NCBA Trade Show in New Orleans next February. The National Cattlemen’s Beef Association is seeking applicants to its cowboy poetry contest. Five finalists will be selected by NCBA on October 26th, with public voting on submitted videos held November 6th through December 4th, 2018. The top three will be announced December 5th, 2018. The winner will have the chance to perform their work live on stage at the 2019 Cattle Industry Convention in New Orleans February 1, 2019. The contestant must upload a video performing the poetry work that is five minutes or less, along with the poem in document form, to be considered. For more information and to enter, go to www.ncba.org, then click on conventions and events/Cattle Industry Convention & NCBA Trade Show. 

USDA Welcomes Rehearing on Chlorpyrifos

Agriculture Secretary Sonny Perdue praised a Department of Justice decision to request a rehearing of a pesticide case before the 9th Circuit Court of Appeals. The DOJ has asked for a rehearing in a case in which the court directed the Environmental Protection Agency to ban chlorpyrifos (clo-PEER-uh-foss), a common and useful pesticide, within 60 days. In his statement, Perdue said USDA disagreed with the ruling, adding: “The decision appears to be based on a misunderstanding of both the available scientific information and EPA’s pesticide regulatory system.” The Department of Agriculture says Chlorpyrifos is used on well over 50 crops grown throughout the United States due to its effectiveness and broad-spectrum activity across multiple pests. For some crops and target pests, USDA says chlorpyrifos is the only line of defense, with no viable alternatives.

Perdue Defends USDA Reorganization Plan that Moves Offices Out of DC

Agriculture Secretary Sonny Perdue this week defended every aspect of his proposal to move some Agriculture Department offices out of the Washington Area. USDA has plans to place the Economic Research Service under the Office of the Chief Economist and to move most National Institute for Food and Agriculture employees out of Washington. In a letter to Senate Agriculture Committee leadership, Perdue said he hopes to announce the location to which most ERS and NIFA employees would be moved by January, and to open operations in their new locations by summer. Perdue sent the letter as opposition to the plan started to intensify, according to the Hagstrom Report. This week, the American Statistical Association published links to sign-on letters to Congress opposing the changes to ERS. In his letter, Perdue acknowledged that both ERS and NIFA interact with Congress and other Washington officials, and said: "We are committed to retaining the necessary staff from each agency in the D.C. area to continue to fulfill these important roles."

China Takes Trade War to Iowa

China took aim at Iowa over the weekend in its trade war with the United States, taking out a four-page advertisement in the Des Moines Register. China Daily, an English-based government publication, paid for the advertisement, highlighting the impact the trade war is and will continue to have on Iowa soybean farmers. The content of the advertisement included an article outlining how the trade dispute is forcing Chinese importers to turn to South America instead of the U.S. for soybeans. The advertising targets a state critical to Trump and Republicans at a time the trade war between the world's two largest economies is intensifying, as Bloomberg points out The U.S. has imposed tariffs on an additional $200 billion in Chinese imports this week, on top of the $50 billion in goods already in place. China, meanwhile, called off planned talks with the U.S. that were aimed at finding a path forward for trade between the two nations.

Updated KORUS Protects Current Market Share

The new KORUS agreement offers a sigh of relief for U.S. beef and pork. The U.S. Meat Export Federation says the market access terms secured in the original KORUS not only helped increase U.S. red meat's market share in South Korea, but also bolstered consumption by making U.S. beef and pork products more affordable and accessible to Korean consumers. Those terms are maintained in the new agreement, as a USDA official noted “nothing has changed” for agriculture. U.S. red meat exports to Korea set a record last year of $1.7 billion, up 19 percent year-over-year and up 69 percent from 2012, when KORUS entered into force. The trend continues this year with both U.S. beef and pork export value increasing more than 50 percent compared to a year ago. The United States is the largest supplier of beef to Korea and trails only the European Union as the second-largest pork supplier. Korea is now the second-largest value market for U.S. beef and fourth-largest for U.S. pork.

Roberts: Farm Bill Not Expected by Deadline

Senate Agriculture Committee Chairman Pat Roberts conceded this week a farm bill by the September 30th deadline is not likely. Overseeing the conference committee between the House and Senate, Roberts says it will be tough to see action completed on the farm bill before the November elections. He told Politico, though, he doesn’t want to consider extending the current farm bill because “it gives people the chance to weigh in again and delay” the negotiations, making an agreement a bigger challenge. The biggest challenge for the conference committee remains in the nutrition title of the farm bill, according to Roberts. The House version includes work requirements in the Supplemental Nutrition Assistance Program that is not welcome in the Senate and would prevent a farm bill from passing the chamber. Roberts says if the committee could get beyond the SNAP issue, “I think we could get ourselves a farm bill.”

Tuesday, September 25, 2018

U.S. Signs KORUS, Perdue Issues Statement

“Put this one in the bag and keep hunting for more,” says Agriculture Secretary Sonny Perdue of the signing of an updated trade agreement between the U.S. and South Korea. President Trump signed an updated United States-Republic of Korea Free Trade Agreement, known as KORUS, Monday. Perdue says of the agreement that it adds to the “the momentum building for President Trump’s approach to trade.” In his statement, Perdue says that he is optimistic “the dominoes will continue to fall,” referring to the North American Free Trade Agreement, and new agreements with the European Union, Japan and even China. The new KORUS agreement is a “better deal for the entire United States economy, including the agricultural sector,” according to Perdue. The White House says the agreement is a sign that President Trump has “fulfilled his promise” to fight for American workers and businesses in an amended trade deal with South Korea.

On-time Farm Bill Hopes Dim

Hopes of an on-time farm bill are diminishing as lawmakers now have less than a week to finish a bill, get it passed by both chambers again, and on the President’s desk for signature. The current farm bill expires September 30th, and the conference committee still must agree on changes in the conservation programs of the farm bill and the nutrition title. Top agriculture lawmakers don’t seem to be concerned, but farm groups are sounding the alarm bells as Congress runs out of time. Senate Agriculture Committee leadership last week said the real deadline that would impact farmers is in December. But, as Politico points out,  many programs would be left in limbo regarding funding. For instance, mandatory funding is available for conservation programs, but without a farm bill, the Department of Agriculture’s authority to operate the programs expires. The bill’s Foreign Market Development program, deemed critical to developing new trade markets, could also lose funding. Lawmakers have yet to make any serious considerations towards extending the current farm bill to allow Congress time to deliver the next.

U.S., Canada Talks on NAFTA Offer Little Progress

Stalled talks between the U.S. and Canada regarding the North American Free Trade Agreement are expected to continue this week, as the U.S. desires to reach a deal by September 30th. Informal talks are likely over the next few days, according to Reuters, as global attention turns towards a U.N. meeting this week. Canadian Prime Minister Justin Trudeau (True-doh) says nothing had formally been arranged for this week, however, leaving further uncertainty as to whether the U.S. will continue to seek a trilateral agreement. The U.S. appears likely to forge ahead with a U.S.-Mexico only trade agreement until the U.S. can reach an agreement with Canada beyond the September 30th deadline. Trudeau offered some pushback over the weekend, saying Canada would not be rushed into reaching an agreement and that he would not sign “a bad NAFTA deal.” Dairy market access remains a sticking point between the two nations, among a handful of other remaining issues.

Escalating Trade War with China Will Increase Damage to Farmers

The escalating trade war between the U.S. and China continues to pose long-term harm for U.S. soybean farmers. The American Soybean Association says recent decision by the Trump administration to impose ten percent tariffs on an additional $200 billion in Chinese imports—and China’s subsequent retaliation on $60 billion of U.S. products—deepens and prolongs the trade war between the two countries, posing even more adverse consequences for American soybean farmers. ASA points out that since June, the price of U.S. soybeans at export terminals in New Orleans has dropped 20 percent, from $10.89 to $8.68 per bushel. Farm-gate prices have fallen even further. During the same period, the premium paid for Brazilian soybeans has increased from virtually zero to $2.18 per bushel, or $80 per metric ton. ASA has urged the Administration to quickly end trade disputes, reconsider joining the Trans-Pacific Partnership, and has asked Congress to double funding for the Foreign Market Development and Market Access Programs for export promotion activities.

USDA Adds Shelled Almonds and Fresh Sweet Cherry to Trade Aid Package

Late last week, the Department of Agriculture announced the inclusion of shelled almonds and fresh sweet cherries to the trade relief package. The relief package provides growers with funding through the Market Facilitation Program to help offset harm producers are facing by the administration’s trade agenda. Producers of shelled almonds and fresh sweet cherries may apply for payments at their local Farm Service Agency. The initial payment rates for shelled almonds is three cents per pound, and the rate for fresh sweet cherries is 16 cents per pound. USDA also has expanded the timeline for producers with whom the August 1, 2018, date does not accurately represent the number of head of live hogs they own. Producers may now choose any date between July 15 to August 15, 2018, that correctly reflects their actual operation. Market Facilitation Program applications are available online at www.farmers.gov.

Lower Pork Prices Helping Demand

Pork production is accelerating, prices are lower, and demand is improving. New Data from the Department of Agriculture shows that lower pork prices this year have encouraged domestic and foreign consumers to buy more U.S. pork. Meat industry publication Meatingplace reports 2018 total cold stocks of pork have remained at or below three and five-year averages so far, and large supplies of hogs are expected to keep hog prices significantly below year-ago levels through at least the first half of 2019. Even with the current trade climate, July pork exports were almost nine percent higher than a year earlier. Third-quarter pork exports are expected to be 1.3 billion pounds, almost six percent higher than in the same period a year ago. Pork exports were stronger despite lower shipments to Mexico and China, both of which have imposed retaliatory tariffs on U.S. pork products. July exports were supported by strong shipments to South Korea, Japan, the Philippines, Australia, and Colombia. USDA will release its quarterly Hogs and Pigs report this Thursday, providing more pork production insight.

EPA RFS Waiver Website Doesn’t Include Justification

A new website by the Environmental Protection Agency doesn’t satisfy all sides of the hardship waiver issue under the Renewable Fuel Standard. The National Corn Growers Association called the website a “good place to start,” but says there is “a lot of questions left unanswered.” The EPA launched the website last week, as acting EA administrator Andrew Wheeler cited the move as an effort to increase transparency. Still, NCGA says the new website does not provide the justification for granting a refinery waiver. Further, NCGA President Kevin Skunes, a North Dakota farmer, says without a change in how EPA accounts for those exempted gallons at EPA, “ those waived gallons will still be lost from RFS obligations”. The agency says it granted 49 waivers in 2016 and 2017. Those waivers added up to 2.25 billion gallons in biofuels, which negatively affected roughly 800 million bushels of corn demand. Skunes says corn farmers are “still waiting for a plan to ensure exemptions are accounted.” 

NRCS Accepting Environmental Quality Incentives Program Applications

Sign-up targeting four categories of conservation practices 

BOISE, September 24, 2018 – The Natural Resources Conservation Service (NRCS) in Idaho has announced an early sign-up period for four categories of Environmental Quality Incentives Program (EQIP) projects. Applications may be submitted for conservation practices covered under:·         
The National On-Farm Energy Initiative, The High Tunnel System Initiative, Disaster Relief Funding, this includes any Grassland Reserve Program, Farm and Ranch Lands Protection Program or Agricultural Land Easement Program easements that need repairs; and    Conservation Activity Plans. Applications must be received by Nov. 16 to be considered for this funding cycle. Applications received after the deadline will be reviewed in subsequent funding cycles. “Agricultural producers are always very resilient and known for rising to any challenge,” said Curtis Elke, NRCS State Conservationist for Idaho. “Recognizing that challenges are opportunities to make things better, this early sign-up period is going to enable us to help Idaho’s farmers, ranchers and private timber producers implement useful conservation practices. This will in turn allow them to be more prepared in the face of natural disasters, rising energy costs, and increasing variability in weather conditions.” For more information on how to apply as well as eligibility requirements, stop by your local USDA service center or visit NRCS online athttp://www.id.nrcs.usda.gov/programs/.  

NCBA: KORUS "Tore Down" Trade Barriers, Helped Increase Beef Exports

WASHINGTON (September 24, 2018) – Today National Cattlemen's Beef Association President Kevin Kester released the following statement in response to the signing of the modernized Korea-United States Trade Agreement (KORUS):“KORUS is a prime example of how U.S. producers benefit from trade agreements that reduce tariffs and implement science-based standards. Less than a decade ago, U.S. beef exports to South Korea were severely limited by a 40 percent tariff and a host of non-tariff trade barriers. KORUS tore down those barriers, helping turn South Korea into a leading destination for U.S. beef. In fact, exports to South Korea accounted for over $1 billion annually over the last two years. We applaud President Trump for his leadership in improving KORUS for other sectors and we know that a modernized KORUS agreement will allow U.S. producers to continue focusing on what we do best: Providing safe, high-quality beef for Korean families to enjoy.”   

Montana Judge Puts Yellowstone Grizzly Bear Back on Endangered Species List

Lakewood, CO. - September 24, 2018 - U.S. District Court Judge Dana Christensen issued a decision today, invalidating the delisting of the Greater Yellowstone Ecosystem grizzly bear and returning the bear to the endangered species list—contrary to the recommendation of 20 years of U.S. Fish and Wildlife Service research.  
Ranchers in western Wyoming have faced mounting losses to their sheep and cattle in recent years and have faced more frequent attacks on humans as the grizzly population has continued to swell in number and expand its territory.  “This ruling will allow the grizzly population to continue to grow unfettered under federal management, endangering the lives and livelihoods of westerners who settled the region long ago,” said Cody Wisniewski of Mountain States Legal Foundation, lead attorney on the case.  
Wyoming resident Mary A. Thoman of W&M Thoman Ranches, LLC, whose family has raised sheep in western Wyoming for nearly seven decades, had to give up her family grazing land after her losses became too great. 
"I am afraid that the Western way of life will be lost for future generations,” she wrote in an op-ed published in USA Today. 
The U.S. Fish and Wildlife Service removed the Yellowstone area grizzly from the endangered species list in 2017, after research showed that population numbers in the region had climbed to at least 700, from a low of 136 recorded in 1975.   
“This achievement stands as one of America’s great conservation successes,” said U.S. Secretary of the Interior, Ryan Zinke about the 2017 delisting. 
Earlier this month Judge Christensen issued a temporary restraining order to stop Wyoming and Idaho’s planned grizzly bear hunts while the court made its decision. The court’s decision today, however, puts the agenda of well-financed special interest groups ahead of westerners who live and work in constant fear of this apex-level predator. 
“Congress intended that, when a species was recovered, it would be removed from federal listing and management would be turned back over to State jurisdiction,” said William Perry Pendley, president of Mountain States Legal Foundation.  “Not only does this ruling frustrate the will of Congress; it also exposes westerners who defend themselves against attacking grizzlies to years of federal prosecution, fines, and possible imprisonment.”   

Canada, US Remain At Impasse Over Dairy

Despite ongoing negotiations between the U.S. and Canada over a new North American Free Trade Agreement (NAFTA) deal, the two countries remain at an impasse over dairy. According to Politico, one senior Trump administration official says the debate over dairy is starting to look like a deal breaker.The U.S. wants Canada to open up its markets to U.S. products and do away with the Class 7 pricing mechanism. Canada has been reluctant to do either and wants to be free of tariffs on autos as well as steel and aluminum.Even though the U.S. sees an uphill road to an agreement, Canadian officials say that headway has been made on the dairy dispute. A top Canadian official told Politico that 60% of what needs to done has been resolved, including the Chapter 19 resolution that allows one country to challenge another country’s duties if those duties have been unfairly applied.While Canadian Foreign Minister Chrystia Freeland left Washington without any indication of a breakthrough, she will be at the UN General Assembly in New York this week with Canadian Prime Minister Justin Trudeau. President Trump will address the Assembly this week, and U.S. Trade Representative Robert Lighthizer will be in attendance. Trade talks could break out on the sidelines of this meeting. 

Monday, September 24, 2018

Washington Insider: Growing Attention on Farm Policy Views

As state and national races heat up ahead of the November elections, the urban media is paying particular attention to trade issues and their implications. For example, POLITICO reported this week that Europe Union (EU) can’t replace China as U.S. soy buyer, and spent considerable time elaborating that conclusion.American farmers are now supplying more than half of the EU’s soybeans, and during the 12 weeks from July through mid-September, U.S. soy exports to the EU were 133% higher than during the same period last year. The U.S. accounted for 52% of all EU soybean imports, compared with 25% over the same period in 2017.But there’s a catch, the report says. While the increase in European imports provides real help to farmers, it doesn’t come close to replacing the business with China that U.S. soybean growers have lost due to retaliatory tariffs.The U.S. exported about $587 million worth of soybeans to Europe over the 12-week period, which is roughly $2.5 billion on an annualized basis. China, the world’s largest importer of soybeans, bought up $12.3 billion worth of U.S. soybeans in 2017 — some 60% of all US soy exports.The news is that “those sales have dried up since China imposed a 25% retaliatory duty on soybeans and a host of other U.S. agricultural exports in July,” POLITICO says. And, the price of soybeans has plummeted about $2 per bushel, or 20%, since June — making them “very attractive” to European buyers. It cited a European Commission report released Thursday and noted that USDA projects agricultural exports to China will drop by $7 billion in the fiscal year starting Oct. 1 “as soybean sales are expected to be sharply lower due to retaliatory tariffs.”The EU figures show that the U.S. has now supplanted Brazil as Europe’s top soy supplier, at the same time that Brazilian soy exports have swept into the Chinese market amid the U.S.-China trade spat.POLITICO notes that Europe is a sizable market, “so growth (hopefully sustained) helps,” but according to Chad Hart, an associate economics professor at Iowa State University, “compared to China, this is only a partial offset.”And the trade war shows no signs of easing. China announced on Tuesday that it would place tariffs on another $60 billion worth of U.S. goods this week, shortly after President Donald Trump gave the go-ahead for new tariffs on $200 billion in Chinese imports. The American Soybean Association said Thursday it was “highly concerned” about the latest escalation.Still, absolutely everything is being interpreted in political terms now, including a soy sales uptick that doesn’t offset the current downturn, POLITICO says. EU sales offer “at least some relief…and it’s something the President can claim credit for after he and European Commission President Jean-Claude Juncker agreed in July. “Any gains in soybean trade are significant right now, given the free fall soybean prices have been in,” Hart told POLITICO.In addition to the growing trade issues, the ag establishment is watching the farm bill conference, especially on the issue of proposed changes to the nutrition programs. POLITICO says that conservative groups advocating trimming social safety net programs held a call Thursday urging farm bill negotiators to “go with the House’s work requirements for SNAP recipients.”The call came as House and Senate agriculture leaders are struggling to reach agreement on major portions of the farm bill, including on SNAP policy, which has long been considered the toughest piece of the puzzle.This is a tough fight, POLITICO thinks. Senate Agriculture leaders have been clear for months about their doubts that stricter work requirements can garner the 60 votes needed to pass the Senate – but conservatives on Thursday reiterated they won’t accept one without more work requirements. The call included experts from The Heritage Foundation, the American Enterprise Institute and the Foundation for Government Accountability, as well as state leaders from Texas and Kansas.“From our understanding, the Senate has been intransigent about making a compromise,” said Jason Turner, executive director of Secretaries’ Innovation Group, which represents conservative state officials who administer SNAP and other social aid programs. Asked what a compromise would look like if it doesn’t include stricter work requirements, Turner said: “There's other things that can be done, but they wouldn't be sufficient to call for an agreement.”Well, we will see. Fights over the nutrition programs are not new and typically get settled because the support for renewing the overall bill is very great. However, the times are different now and all battles are tougher. Farm bills are often late and this likely will be no exception. Certainly, this is one of the more important fights producers need to watch as it intensifies, Washington Insider believes. 

EPA Releases RFS Waiver Information Online

The Environmental Protection Agency released aggregated information on small-refinery exemptions to the Renewable Fuels Standard the agency issued over the last couple of years. A DTN report says they’ve also given out information on current and future waiver requests. The agency says it granted 49 waivers in 2016 and 2017. Those waivers added up to 2.25 billion gallons in biofuels, which negatively affected roughly 800 million bushels of corn demand. Because of those waivers, the National Biodiesel Board says that amounted to a loss of 300 million gallons of biofuels. In a statement issued last week, Acting EPA Administrator Andrew Wheeler says, “Increasing transparency will improve implementation of the RFS and provide stakeholders and the regulated community with the certainty and clarity they need to make important business and compliance decisions.” Ag Secretary Sonny Perdue says he hopes making this information public will be beneficial for both the biofuels and agriculture markets. EPA says it will also post the latest Renewable Identification Numbers (RIN) weekly average prices as well as the volume of RINs sold. Growth Energy CEO Emily Skor says her group still has questions about how the EPA will resolve the issue of the lost gallons of biofuels.

U.S. Close to Proceeding With Mexico-Only Trade Deal

White House Economic Trade Adviser Kevin Hassett says the U.S. is getting very close to having to move forward on its trade deal with Mexico without Canada. The deadline to publish the text of an agreement to update the North American Free Trade Agreement is October first. As the deadline approaches, Hassett says the U.S. and Canada haven’t agreed to a deal. “We’re still talking to Canada,” Hassett says, “but we’re getting very, very close to the deadline where we’re going to have to move ahead with Mexico all by itself.” Hassett, who chairs the White House Council of Economic Advisers, says he’s surprised that Canada hasn’t signed an agreement yet. “I worry that politics is trumping common sense because there’s a very good deal in place that was designed by both Mexico and the U.S. to appeal to Canada,” he says. “They’re not signing on to the deal and its got everyone puzzled.” Chrystia Freeland, Canada’s Foreign Minister, left Washington last Thursday with no deal in place.  

U.S. Supplying More Than Half of the E.U. Soybeans

The European Commission released a report that says American farmers are now supplying more than half of the European Union’s soybeans. Over a 12-week period from July through mid-September, U.S. soy exports to the EU were 133 percent higher than the same time period in 2017. Politico says the U.S. supplied 25 percent of the EU’s soybeans needs from July through mid-September in 2017, with that number growing to 52 percent of the EU’s soybeans in 2018. While the increase in soybean exports does provide some relief to American farmers, it still can’t replace all of the lost soybean sales to China. The U.S. exported roughly $587 million worth of soybeans to Europe during that 12-week period, which calculates out to $2.5 billion on an annual basis. China bought $12.3 billion worth of U.S. soybeans in 2017. That’s 60 percent of all U.S. soybean exports. As farmers know firsthand, those sales have dried up since China imposed a 25 percent retaliatory tariff on American soybeans, as well as a host of other U.S. ag exports in July. The E.U. figures show that U.S. farmers have replaced Brazil as the top supplier for Europe. That comes as Brazil has replaced the U.S. as the top soybean supplier to China.

Bayer Files Appeal to California Glyphosate Ruling

Bayer is increasing efforts to defend Roundup, its flagship weed killer. A Dow Jones report says the effort follows a recent verdict in a California court case alleging that the chemical causes cancer sent shares sharply lower. According to the company’s court filing, Bayer wants a California judge to overturn the jury verdict, order a new trial, or reduce the damages. The company is looking to overturn a $289 million-dollar jury award in August. It’s the first of thousands of cases filed by farmers, gardeners, and others who claim Bayer’s Roundup herbicide caused their cancer. The jury reached a unanimous verdict in awarding the damage amount to a California groundskeeper who claimed that frequent use of Roundup caused his non-Hodgkin’s lymphoma. The verdict came just two months after Bayer completed its acquisition of Monsanto, who invented the herbicide. Bayer shares have fallen 22 percent to record-lows that haven’t been seen in five years. The Dow Jones report says business insiders are questioning whether Bayer underestimated the risks of acquiring Monsanto because of the pending lawsuits. Bayer now faces 8,700 plaintiffs in the U.S. alone, a number the company expects will only get larger.

Foreign Market Development Faces Funding Gap

Organizations that use government funds to promote U.S. commodity purchases in foreign countries could face some funding challenges in the near future. The Hagstrom Report says that will likely happen if Congress doesn’t pass a farm bill by September 30. Scott Shearer is a lobbyist who represents the FMD groups, which are called cooperators. “In this time of trade uncertainty and low prices, lack of funding, which likely leads to closing offices and letting staff go is a signal to our competitors that we’re ceding the market to you,” says Shearer. That situation also would complicate the Trump Administration’s plans to help farmers hurt by retaliatory tariffs through the increase of trade promotion programs. The potential funding gap happens because the Congressional Budget Office says programs that are under $50 million go to a zero baseline in their last year of authorization. Only a new farm bill can solve that problem. Shearer says an extension of the 2014 farm bill won’t help. In past years, USDA has issued new allocations of funds in November. However, the agency can’t provide more money until Congress acts on a new farm bill.

Rabobank: Global Poultry Prices Under Pressure

A Rabobank report says a historic drop in poultry exports from Brazil is shaking up trade in the commodity around the world. The latest quarterly outlook on the industry says African Swine Fever could also indirectly affect the industry. Global poultry prices dropped by an average of five to 10 percent in the second quarter of this year. African Swine Fever outbreaks in China may lead to an increase in pork supply because of herd liquidation through the end of the year. That may push all meat prices lower in the months ahead. Analysts in the report say that drop could reverse by 2019. “Chinese consumers may turn from pork to poultry and push prices somewhat higher,” the report says. “While this can paint a pessimistic picture, in reality, the poultry industry performance is still solid around the world.” In the U.S., Rabobank says prices are weakening and margins are going to be soft as protein supplies rise. The industry is still profitable, as it’s being helped by growing exports to Cuba, Taiwan, and Vietnam. Overseas, Rabobank says local poultry industries in Asia, Africa, and Europe are all enjoying profitable margins thanks to balanced supply and demand.  

U.S. dairy exports slowed in July

U.S. dairy exports slowed in July, but aggregate exports were still higher than a year ago. “Exports fell short of the impressive volumes sent abroad in the first half of the year, which reflects the impact of new tariffs, a stronger dollar, and less competitively-priced U.S. dairy products,” says Sarina Sharp, analyst with the Daily Dairy Report. Despite the slowdown, aggregate dairy exports in July were up 15.4% from July 2017, according to data from USDA-Foreign Agricultural Service’s Global Agricultural Trade System (GATS). Only exports of U.S. whey products and cream slipped below year-earlier volumes. Year-over-year exports of dry whey slumped 8.3% in July, while whey protein concentrate (WPC) shipments plunged 18.4%. “Mexico’s higher tariffs on U.S. cheese and China’s higher tariffs on U.S. dairy products took effect in early July, and U.S. cheese exports to these top two markets retreated,” Sharp notes. China is no longer reporting import volumes, but the value of U.S. dairy product exports to China plunged 27% from July 2017, a nearly two-year low, and were down 42% from record-breaking shipments in April. U.S. butter and milkfat exports to all locations in July were 66% larger than year-earlier volumes, but butter imports—particularly from Ireland—also climbed. July butter imports from the Emerald Isle hit a record high, and overall U.S. butter imports were larger than exports, Sharp notes.   Meanwhile, U.S. cheese exports were 1% greater in July 2018 than in July 2017, and milk powder exports were 29.8% larger than a year ago. “U.S. cheese exports in July—driven by waning shipments to Mexico—marked the smallest monthly volume since January,” Sharp states. “Mexican buyers clearly tried to rush orders before higher tariffs on U.S. cheese exports took effect July 5.” Mexico has not changed its tariff policy toward U.S. milk powder. In June, Mexico imported 43% more cheese from the United States than it did in June 2017, but Mexico’s July imports of U.S. cheese were 0.6% lower than 2017’s relatively light volumes. “Combined June and July U.S. cheese export volumes to Mexico suggest that the country’s appetite for U.S. cheese remains robust,” Sharp says. The future of cheese trade with Mexico remains cloudy at this point, Sharp says. The United States, Canada, and Mexico have been renegotiating the North American Free Trade Agreement (NAFTA) for more than 13 months. Recently, the United States and Mexico announced they had reached a preliminary agreement that excludes Canada, but Canada is now negotiating with both the United States and Mexico to become part of the deal. Canada’s Class 7 milk classification as well as its high tariffs on dairy products remain sticking points in the negotiations. The U.S. Congress will need to ratify any new trade agreement, and it appears less likely, but not impossible, that Congress would ratify a bilateral deal with Mexico than an agreement that includes all three NAFTA countries, she adds. 

For the fourth month straight the Cattle on Feed report eclipsed a monthly record

For the fourth month straight the Cattle on Feed report eclipsed a monthly record with the September 1st feedlot inventory eclipsing 11.1 million head, an increase of 5.6% since the same time in 2017. According to USDA, there were 11,125,000 head of cattle in feedlots at the start of September, the highest number for the report that started back in 1996. The monthly inventory not only increased year-over-year, but month-over-month with 32,000 more cattle on feed since the August 1st inventory. In August a monthly record was also set, while July and June saw similar records set. Individual state inventories with the largest increase from last year include California (25%) and Arizona (21%). South Dakota was the only state to see a decline in feedlot inventory with a 7% drop from 2017. The top five cattle feedlot inventory states are as follows: 1.     Texas 2,680,000 head 2.     Nebraska 2,330,000 head 3.     Kansas 2,310,000 head 4.     Colorado 900,000 head 5.     Iowa 680,000 head   August feedlot placements were up 6.9% from last year with 2,070,000 cattle placed in the past month. The most popular class of cattle to be placed were 800-899 lb. followed closely by calves weighing 700-799 lb. Last month 800-899 lb. class cattle were the third most popular placed cattle. The placements went as follows for August: 800-899 lb. = 475,000 head 700-799 lb. = 460,000 head Less than 600 lb. = 430,000 head 600-699 lb. = 335,000 head 900-999 lb. = 240,000 head 1,000 lb. and greater = 130,000 head Fed cattle marketing for July was up 5% since last year with 1.87 million head going through packers.

Friday, September 21, 2018

Canada's Freeland Returns to Ottawa without NAFTA Conclusion

Canadian Foreign Minister Chrystia Freeland returned to Canada Thursday to be at a scheduled event on Friday without reaching a final agreement in the NAFTA 2.0 negotiations."We are really in a continuous negotiation phase. Officials are in pretty much constant contact. It would not be an exaggeration to say they are working 24/7," Freeland said as she exited talks with U.S. Trade Representative Robert Lighthizer.Freeland would only say the talks were "constructive," noting that she chose her words "carefully" to describe the discussions. "Today we discussed some tough issues," she noted.It is not clear when the next sessions will be between the top-level negotiators, but there could be opportunities for Lighthizer and Freeland to meet next week while UN meetings are taking place in New York.

Countries to Press US For More Details On Farmer Aid Plan

Several countries are signaling they will seek more information from the U.S. on the $12 billion farmer aid plan deployed by the Trump administration with an eye on how long the effort is to last, if it meets U.S. World Trade Organization commitments and if it will impact domestic agriculture sectors in other countries.Questions will be coming from New Zealand, Japan, India, the European Union, Canada and Australia, according to notices filed ahead of the Sept. 25-26 meeting.Questions from Australia will focus on when the U.S. would formally notify the WTO, how long the plan will be in effect, how the various programs will fit into WTO rules and what would trigger the second portion of the package and whether that installment would be under the same efforts as the first installment. New Zealand will seek assurances on the plan being a one-time payment and whether it would take the U.S. close to its farm subsidy cap of $19.1 billion annually.How the U.S. determined the payment formulas under the first installment of farmer aid payments totaling $4.7 billion is another point of information countries are seeking while Japan and Canada expressed concern the effort will amount to excessive support for ag production, with Canada also wanting to know if more products would be covered under the Market Facilitation Program.Further, Canada expressed concern on whether the $200 million in trade promotion efforts would be used to subsidize U.S. exports on the global market.

Washington Insider: Cancer Warning for Coffee Not Necessary, FDA Says

There has been a headline-level back and forth in California recently regarding whether coffee should require a cancer warning label. Now, it looks like that won’t be necessary.In March, a judge sided with a nonprofit organization called the Council for Education and Research on Toxics that argued that coffee contains high levels of acrylamide, a cancer-causing chemical compound produced as beans roast.In fact, coffee companies didn't deny acrylamide's presence but argued that it occurs at low levels “that posed no significant health risk” and was outweighed by other health benefits.That argument wasn't compelling to Los Angeles County Superior Court Judge Elihu Berle. He ordered coffee companies in California to carry a cancer warning label under Proposition 65, the state's Safe Drinking Water and Toxic Enforcement Act. The law, which requires the state to maintain a list of harmful substances and businesses to notify customers of exposure, has led to both a reduction in carcinogenic chemicals and quick settlements over labels on foods — along with numerous disputes.Then, last month FDA Commissioner Scott Gottlieb got into the fight with the statement that "if a state law purports to require food labeling to include a false or misleading statement, the FDA may decide to step in," National Public Radio reported.Gottlieb added that a large body of research has found little evidence that coffee causes cancer and instead suggested that it might reduce the risk of some cancers: "Strong and consistent evidence shows that in healthy adults, moderate coffee consumption is not associated with an increased risk of major chronic diseases, such as cancer, or premature death, and some evidence suggests that coffee consumption may decrease the risk of certain cancers."The cancer label warning, he said, may "mislead consumers to believe that drinking coffee could be dangerous to their health when it actually could provide health benefits."The agency also announced that it had written in support of the California Office of Environmental Health Hazard Assessment, which had proposed as exemption for coffee companies like Starbucks from putting the warning label on their products.Of course, advocates of the cancer warning weren’t pleased. For example, attorney Raphael Metzger, who won the court case in March on behalf of the Council for Education and Research on Toxics, told CBS that he was shocked that the state would annul the judge's decision. "The takeaway is that the state is proposing a rule contrary to its own scientific conclusion. That's unprecedented and bad," Metzger said. "The whole thing stinks to high hell."National Coffee Association President and CEO Bill Murray embraced the state regulator's proposed exceptions earlier in August and also welcomed the FDA's actions. "Now that science has so comprehensively established the facts on coffee, we believe it is incumbent on regulators to give citizens confidence in what they are consuming," he told NPR.The federal regulator's involvement also received some praise from a leading cancer institute. Dale Shepard, an oncologist at Cleveland Clinic, who said in a tweet, "Whew! My cup is nearly empty, so happy to see the @US_FDA is weighing in with some common sense on the judicial ruling in California that #coffee is a #cancer risk. Best to rely more on the science."So, we will see. The push to regulate ag chemicals today is much more sensitive to dosage and other conditions of usage than was the case in earlier years when the Delaney clause was in effect and attempted to ban products without regard to degree and conditions of use. And, FDA appears to be using its authority to intervene to establish safe use rules without total bans.Still, chemical use often remains controversial and disputes about how it should be regulated likely will be encountered in the future, as they were in the past. This is a process producers should watch closely as it proceeds, Washington Insider believes.