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Friday, March 29, 2019

Senators Urge USDA to Pull Proposed Food Stamp Rule

USDA should withdraw a proposed rule that would limit state officials’ ability to exempt food stamp recipients from time limits and work requirements for their food aid, 47 senators said Thursday in a letter to USDA Secretary. Sonny Perdue. Public comment on the draft rule closes on Tuesday, April 2. The House Agriculture Subcommittee on Nutrition and Oversight plans a hearing on April 3 to examine the potential effects of the rule, which would make it more difficult for states to receive waivers from USDA. Those waivers now allow states to extend benefits beyond a three-month limit every three years that an able-bodied adult can get aid.

Washington Insider: Rescuing Farmers from Big Ag

Americans are known to be well fed and to have access to an abundance of healthful food and fiber products which cost a far smaller share of their disposable income than in other developed countries. Producers see this as solid economic progress for the nation—but many urbanites don’t. They delight in criticizing efficient farms as “factories” that produce often unhealthful products at heavy cost to the environment. The family farm is idealized, but not clearly defined in spite of the fact that nearly all U.S. farms are family operated and mostly family owned. Still farmers are far fewer in number than they were even one generation ago, so the urban press controls the social image of the US food culture and frequently finds much not to like. This image appears to be translating into politics to some degree. For example, Bloomberg reports as candidates appeal for votes in Iowa they often appeal to family farmers. Bloomberg focuses on one proposal by an East Coast candidate that includes a promise to break up big agricultural businesses to end their “stranglehold” over farmers. Bloomberg notes that several candidate proposals are follow a somewhat similar pattern in their attempts to distinguish themselves in a crowded field by offering competing robust--and progressive – policy proposals. These have included, Bloomberg says, numerous proposals for consumer financial protection since the 2008 banking crisis as well as “ultra-millionaire” tax proposals along with tighter regulations for large technology companies. Such proposals are offered as floods damage the Midwest and “economic setbacks” affect farmers in the region already hit by the trade war with China. Even some Republicans who represent rural areas have warned the administration that low commodity prices and retaliatory tariffs could add voters to a Democratic coalition currently concentrated on the coasts, Bloomberg says. Bloomberg’s report focuses extensively on a proposal that aims at “structural” problems and asserts that the Bayer-Monsanto merger, approved by the Justice Department last year, “never should have happened” while promising the appointment of “trustbusters” who would reverse that merger, along with others said to be anti-competitive. It also criticized the 2017 merger that formed DowDuPont Inc. and China National Chemical Corp.’s 2017 acquisition of Syngenta AG, along with Tyson Foods Inc.’s domination of chicken farming. It charges that corporate consolidation in agriculture is “leaving family farmers with fewer choices, thinner margins, and less independence.” The proposal was released ahead of Democratic candidates’ Heartland Forum on rural issues to be held tomorrow and is expected to draw several presidential hopefuls. Bayer spokeswoman Christi Dixon said regarding the proposal, "We brought together two talented teams and a robust portfolio to offer more choices for farmers." Tyson Foods spokesman Gary Mickelson told Bloomberg that “family farmers are essential to Tyson Foods and their success is important to us.” He added, “The best way for the U.S. government to support farmers and ranchers is to ensure we have bilateral trade agreements in place to help increase exports.” There is little that is new in claims that farmers are paying the price for decisions in Washington that “favor interests of multinational corporations and big business lobbyists,” especially in Iowa or other important farming states. However, at least some of the current focus is unusual in that it bypasses key farm issues, including trade, soil conservation and market development efforts, among many others. Clearly, the structure of agriculture is important to producers everywhere. However, to the extent that emerging proposals are seen by Iowans as catering heavily to the coastal food cultures and their view of an ideal ag system, at least some of its components may be seen as heavily nostalgic. In addition, a subtle message seems to be emerging that paints ag as big, industrial, out of touch with consumers and in need of returning to its roots. Such images have at least some potential of leading to unwelcome interventions and should be watched closely as next year’s campaign intensifies, Washington Insider believes.

USDA Eyes New ERS, NIFI Locations by May

The Department of Agriculture will release it’s shortlist of potential spots for relocating the Economic Research Service and National Institute of Food and Agriculture "in the coming days." USDA is working towards deciding on the final relocation spots by early May, according to Politico. An official from USDA told Congress this week that, under the plan, the Economic Research Service would keep 76 jobs in Washington and relocate 253 positions, while the National Institute of Food and Agriculture would retain just 20 employees in Washington, D.C., and move 315 to the new site. However, those numbers are based on currently appropriated positions. President Trump's fiscal 2020 budget calls for cutting the full-time ERS workforce in half, from about 330 positions to 160. USDA will also provide a cost-benefit analysis with the final recommendation. USDA maintains that taxpayers would benefit from the proposal because USDA would save money on rent by moving outside of the nation's capital. The agency also says employees would benefit from shorter commute times and lower housing prices.

Abundance of Moisture Limits Drought Conditions

An abundance of moisture across the United States has greatly diminished the Drought Monitor’s findings of drought across the nation. Just this week, officials declared California “drought free” for the first time in seven years. There are no areas of extreme, or exceptional drought classifications in the nation, and very few cases of severe drought. However, dryness intensified across parts of the South, while the overall trend toward drought recovery continued in the Four Corners region. Elsewhere, dryness concerns increased in the Northwest where drought expanded slightly. Most of the nation from the central and northern Plains to the Mid-Atlantic and Northeast remained free of drought, with severe flooding the primary concern in the nation’s heartland. Over the next week, an unsettled weather pattern will continue over much of the nation. A pair of Pacific storms are expected to bring relief to the Northwest and northern Rockies. As the system marches east, it will produce rain and snow from the central Plains into the Midwest, though the Upper Midwest will remain dry.

Midwest Flooding Drops Ethanol Production 13%

Flooding in the Midwest impacting ethanol facilities has reduced ethanol production by 13 percent in the United States. Plants in Nebraska, Iowa, South Dakota and Missouri were forced to shut down or scale back production during and following the flooding. Rail lines are washed out, hampering the transportation of products to and from ethanol plants. Some have damaged facilities or soaked stored corn, and local roads need repair around the facilities. The U.S. has some 200 ethanol plants capable of producing 1.06 million barrels per day, and about 100,000 to 140,000 barrels per day of capacity has been taken off line due to the floods, according to Reuters. Nebraska officials say crop damage in the state will exceed $400 million. The flooding disaster comes as the industry is in the midst of low prices and demand falling for the first time in 20 years.

FCA Encouraging Farm Credit System to Work with Borrowers in Flooded Areas

The Farm Credit Administration is encouraging Farm Credit System lenders to work with borrowers who have been affected by the extensive flooding in the Midwest. The mid-March “bomb cyclone” dropped heavy rain and triggered massive snowmelt, which led to widespread flooding in the Midwest, particularly in Nebraska and Iowa. Known damages include loss of livestock, production facilities, and grain in storage. Also, saturated soil is adversely affecting preparations for spring planting. FCA regulations and the solid financial position of lenders offer considerable flexibility in providing disaster relief. FCA says Farm Credit System lenders can alleviate stress for borrowers affected by natural disasters in several ways, including extending the terms of loan repayments and restructuring borrowers’ debt obligations. A Farm Credit Administration official stated, “We encourage institutions to use this flexibility following disasters like this one to help borrowers get back on their feet.”

Bayer to Appeal $80 Million Jury Decision

Bayer, in response to an $80 million award to a California man suing the company over Roundup, says the verdict “does not change the weight of over four decades of extensive science.” Bayer will appeal the action, which is considered the phase two verdict in the case Hardeman v Monsanto. The jury found Bayer liable for Edwin Hardeman's cancer. Bayer acquired Monsanto in a deal that closed last year. Bayer notes that the jury deliberated for more than four days before reaching a causation verdict in phase one, an indication that it was very likely divided over the scientific evidence. The legal rulings under which the court admitted expert scientific testimony from the plaintiff that it called "shaky" is one of several significant issues that the company may raise on appeal. Monsanto moved to exclude the same evidence before trial. Bayer offered sympathy for Hardeman and his family, but added “Bayer stands behind these products and will vigorously defend them.”

Major Food Companies Release Nutrition and Dietary Guidance Framework

A group of major food companies says more can be done to address public health and environmental health concerns, including climate change, through food. The Sustainable Food Policy Alliance was formed by Danone North America, Mars Incorporated, Nestle USA and Unilever to influence food policy. This week, the group released its framework for the 2020-2025 Dietary Guidelines for Americans. The group says the guidelines should be transparent, reflect the current public health environment, incorporate food groups that reflect a wide range of possible healthful diets, and be enhanced through education campaigns, along with clearly stating rational with scientific citations. The groups state the guidelines are “the right place to explore issues like sustainability and emerging areas like Food is Medicine, in order to turn the tide on food and nutrition-related public health concerns.” The framework also says dietary advice should account for how climate change, water scarcity, soil health, and other environmental challenges may impact the availability and nutrient density of foods and beverages.

Thursday, March 28, 2019

Limits on Section 232 national security tariffs

Senate Finance Chairman Chuck Grassley, R-Iowa, expects bipartisan legislation "in the coming weeks" to propose time limits on Section 232 national security tariffs. Grassley's announcement comes days after the one-year anniversary of President Donald Trump imposing 25 percent tariffs on steel and 10 percent tariffs on aluminum via Section 232. The legislation would impose new consultation and reporting requirements through the investigative process to keep lawmakers informed. It would also allow lawmakers to “weigh in on any action” by potentially limiting the lifespan of tariffs or other trade restrictions unless Congress grants an extension. The bill would require the White House to provide reports on how any trade actions are achieving national security objectives. It would also require a “transparent and accountable” process for requesting tariff exclusions.

Senate Moves Forward On Disaster Aid Plan

The Senate voted 90 to 10 to move forward to consideration of a $13.46 billion disaster aid package Tuesday, but that plan will not address current flooding in the Midwest. Senate Majority Leader Mitch McConnell, R-Ky., said disaster aid would get approved in piecemeal fashion as the number of disasters multiplies. "Clearly we will be doing another supplemental here in the near future once we assess the damage in the Midwest," he told reporters Tuesday. Sen. Roy Blunt, R-Mo., said lawmakers had been trying to expand the aid package to include recent flooding in Nebraska, Iowa and Missouri. But if the price tag for those three states exceeds $8 billion, he said, "you would add money later to that fund." The government has an indemnity program for livestock killed by storms and flood, but nothing to compensate growers for grain lost to flooding. For privately stored grain, “we do not have anything in place at USDA,” USDA Undersecretary Greg Ibach said earlier this week. “If Congress passes a disaster package, that may or may not be part of that.” Crops contaminated by flooding cannot be sold for food or feeding because it is considered adulterated. Flood waters may contain sewage, pesticides, pathogens and other toxic substances.

Washington Insider: The US Push to Limit Metal Imports

Amid widespread fights for better access for U.S. exports, the United States is continuing to push for limits on sales of foreign metals, angering allies, the New York Times is reporting this week. The U.S. demand, reiterated in meetings with Canadian officials this week, has been rejected by Canada and Mexico and is eliciting opposition from American companies that use foreign steel and aluminum. This dispute is further complicating efforts to finalize the new NAFTA which faces a long battle in Congress and must be ratified by legislators in all three nations. Canada and Mexico had hoped that the administration would remove the metal tariffs last year when the three countries agreed on the United States-Mexico-Canada Agreement (USMCA). That did not happen and Mexico and Canada are now pushing hard for the United States drop the levies as a condition of ratifying the deal. On Monday, Chrystia Freeland, the Canadian foreign minister, called the tariffs “illegal and unjust” and “completely unacceptable.” Her comments followed a meeting with Robert Lighthizer, the United States Trade Representative, that focused mainly on the tariffs. Freeland said Canadians would be “really troubled” at the prospect of moving forward to ratify the new pact while the tariffs were still in place. “To a lot of Canadians, it just doesn’t make sense,” she said. To try to resolve the impasse, the Trump administration has proposed switching Canada’s current 25% tariff on steel and 10% tariff on aluminum to a quota system, in which specific amounts of Canadian metal would be allowed into the United States each year, the Times says. However, Canada has rejected that idea, as have American companies that use foreign steel and aluminum in their products — from beer brewers to jet makers. They argue that capping metal imports at a specific level would be even more disruptive than tariffs and could result in steep price increases or a scarcity of metals. The United States and Mexico are locked in similar negotiations. Jared Kushner, the president’s son-in-law and a senior White House adviser, traveled to Mexico last week to discuss the tariffs, the new trade deal and investment. On Tuesday, associations representing the aluminum industry in all three countries wrote to the president asking for their industry to be exempted from any tariff or quota. “Replacing a tariff with a quota on aluminum imports in North America would be highly detrimental,” the letter said. However, the president credits the tariffs with reviving the United States steel and aluminum industries and claims that American steel mills are “roaring back to life.” And American giants like United States Steel and Nucor say the tariffs have helped them build new facilities and hire workers. Still, the Times says that “experts believe those gains have come at a high price.” For example, the Peterson Institute for International Economics recently calculated that the administration’s tariffs would create 8,700 jobs in the U.S. steel industry but at a cost to users of $650,000 for each job created. “What we hear from our member companies is tariffs are bad and quotas are worse,” said John Murphy, the senior vice president for international policy at the U.S. Chamber of Commerce. In a recent statement, Canadian leaders of the United Steelworkers called on their government not to ratify the new trade pact until “tariffs and quotas are removed from the equation.” Aaron Padilla, the senior adviser for international policy at the American Petroleum Institute, said quotas would further hinder the oil and gas industry, which needs steel to build pipelines and other infrastructure and has already been affected by tariffs. “With surging production of natural gas and oil, the steel needs have increased,” Padilla said. “Quotas can actually stop steel at the border.” That can result in companies having to either store the metal or have it sent back to the factory at great expense, he said. Traders can also game a quota system, stockpiling metal and then flooding the market when the quota period opens according to the Harbor Aluminum Intelligence Consultancy, the Times said. The report also concludes that the administration’s strategy has strained American alliances and given allies little room to maneuver. However, although Canada and Mexico repeatedly insisted that they would not negotiate a revised NAFTA with the threat of levies hanging over their heads, the three countries signed their pact in November without the levies being lifted. The administration continues to threaten to withdraw from the North American trade pact altogether if Congress does not approve the new deal. Increasingly, the metal tariffs appear to be assuming a growing importance in U.S. trade negotiations with important implications for U.S. consumers, a development producers should watch closely as the trade policy fights continue, Washington Insider believes.

Report: 55% of Corn Acres Face Potential Flooding

A report from Plantalytics says current conditions in the Corn Belt leave 55 percent of the nation’s corn acreage at risk of flooding. Plantalytics is a business weather intelligence firm. The firm reports that major flooding throughout the United States leaves 55 percent of corn acres at risk, along with 60 percent of the nation’s soybean acres to be planted this spring. Thousands of acres have already been inundated with flood waters along the Missouri River, and some will not be used to produce a crop this season. The report follows a forecast by the National Oceanic and Atmospheric Administration, or NOAA, depicting at-risk areas this spring. The Missouri and Mississippi River, throughout nearly all of their length, are at risk for major or moderate flooding. NOAA has much of the eastern U.S. at risk for minor flooding, along with the south and Midwest. The report from Plantalytics based its data on 2018 production of corn and soybeans.

Mississippi Seeks Federal Disaster Declaration

A delegation of elected officials from Mississippi is seeking a federal disaster declaration for the state. Mississippi, much like other states near major U.S. rivers, is experiencing record flooding. In a letter to the Trump administration, the state’s lawmakers reported 43 of the state’s 82 counties have been affected by flooding this spring. The state reports more than 1,300 homes have been damaged, along with 35 bridges and 938 reports of damage to roadways. Earlier this month, the National Oceanic and Atmospheric Administration said flooding in southern states, including Mississippi, could be “potentially historic.” Historic flooding is already occurring across the Midwest and flood waters in several areas have eclipsed previous records held since 1993. Minor to moderate flooding has been a threatening issue to the entire Mississippi and Missouri river basins since last summer and fall. Flood advisories, watches and warning are in effect along nearly the entire length of both the Missouri and Mississippi Rivers.

Trump Wants Quick Action on USMA

President Donald Trump wants lawmakers to move quickly to approve the U.S.-Mexico-Canada Agreement. The USMCA, Trump's replacement for the North American Free Trade Agreement, is currently being navigated through procedural hurdles before the administration can present the final proposed agreement to Congress. Lawmakers must consider the agreement on a simple yes or no vote, with no amendments, with Trade Promotion Authority in effect. Politico reports Trump told House Republicans in a meeting this week the administration is preparing for a vote on the agreement before the summer, but a vote by the end of the year is a more likely timeline. Although, a vote is allowed to happen sometime after the U.S. International Trade Commission submits its analysis of the economic impact of the deal on April 19th. The USMCA agreement is considered Trump's top legislative policy in 2019, before election-year politics muddy the path forward in 2020.

ASA: Growers Not Pleased with Keeping Tariffs in Potential China Agreement

In a statement by the American Soybean Association, leadership of the organization say the group "is not pleased" with recent comments by the President regarding tariffs and the China trade talks. President Trump has suggested that he could leave tariffs in place under an agreement with China. However, ASA considers the removal of tariffs on China part of an exchange for China to lift its retaliatory 25 percent tariff on U.S. soybean imports. ASA president Davie Stephens questioned, "How can the U.S. and China reach any deal without doing so?" ASA in prior statements said “it’s not enough for China to make one-off good will purchases,” of U.S. soybeans over the last three months. Any longer-term plan to manage soybean trade under which China would guarantee to buy specified amounts of soybeans over an extended period—but still keep its 25 percent tariff in place—"is not an acceptable alternative to full market access,” according to ASA.

U.S. to Inspect Brazil Beef Plants

U.S. officials will inspect Brazilian beef plants in June following trade talks between the U.S. and Brazil. In a news release, Brazil’s agriculture minister said U.S. officials will audit the inspection system for Brazil beef and pork from June 10 to June 28, calling the audit “an important step” to allow Brazil to re-export to the United States in the future. Brazil says the U.S. Department of Agriculture inspection intends to verify that Brazilian products meet U.S. sanitary requirements. Brazil and the U.S. last week issued a joint statement agreeing to “science-based conditions” to allow for the importation of U.S. pork, according to the statement. Still, concerns remain within the U.S. regarding allowing products from Brazil into the U.S. market, according to meat industry publication Meatingplace. Agriculture Secretary Sonny Perdue in 2017 suspended imports of fresh Brazilian Beef in the wake of public health concerns, sanitary conditions and animal health issues.

Western U.S. Farmers Urge Lawmakers to Address Water Challenges

More than 100 organization representing Western U.S. agriculture are urging Congress to use infrastructure legislation to address Western water challenges. The groups say, “existing water infrastructure in the West is aging and in need of rehabilitation and improvement.” President Trump has said infrastructure might be one area that both political parties in the 116th Congress can agree upon. The Democratic Party’s to-do list also includes an ambitious infrastructure program. California Farm Bureau President Jamie Johansson says, “many California water users will still face water shortages in 2019,” despite an above average snowpack, highlighting the need for reforms. Representative Peter DeFazio, a Democrat from Oregon, was one of the recipients of the letter. DeFazio now chairs the House Transportation and Infrastructure Committee, where he intends to lead efforts to produce a multi-billion-dollar infrastructure bill to fund transportation and water projects. The letter underscores that water conservation, water recycling, watershed management, conveyance, desalination, water transfers, groundwater storage and surface storage are all needed in a diversified management portfolio.

Badly Injured Montana Rancher Rescued By Neighbor

A rancher in Montana who was injured while working with his cattle on March 6 and was rescued by a neighboring rancher who drove a tractor through snow drifted roads to pick him up. The Billings Gazette reports that the rescue happened after the rancher was badly injured while handling cattle south of Broadview, Mont. Roads were too heavily drifted with snow for emergency vehicles to arrive at the scene. Yellowstone County Sheriff Mike Linder says that the rancher, who was not named in the report, was also too injured to drive himself out. Rancher Justin Downs answered the call from Broadview Fire Department to help rescue his neighbor and came with his tractor. At the time snow depth in Yellowstone County was estimated to be between 12 to 17 inches. “He has pulled people out of the snow banks, and dug people out,” Linder says. “From time to time we run into these things where you can’t get in to them because of the weather conditions and we rely on neighbors to help us out.” Downs and a medic drove out across snow covered pastures approximately 2 miles from the main road before arriving at the ranch. Upon arriving at the ranch the medic was able to stabilize the injured man in a collar and he was loaded into the tractor. It is estimated to have taken 40 minutes to reach the injured rancher and take him back to first responders who were waiting on the road. After Downs dropped off his fellow rancher he went back to the ranch to pick up the medic.

Wednesday, March 27, 2019

'Green New Deal' Resolution Defeated as Expected

The Senate Tuesday voted 0-57 against the non-binding "Green New Deal" resolution (SJRes 8 (116)), with all Republicans voting against, joined by Democratic Sens. Joe Machin of West Virginia, Doug Jones of Alabama, and Krysten Sinema of Arizona, and Sen. Angus King, an Independent from Maine, who caucuses with the Democrats, also voted against the measure. But the remaining Democrats voted "present," protesting what they said was a political stunt by Senate Majority Leader Mitch McConnell, R-Ky., who pushed the vote on the non-binding resolution. Those voting present included the author of the resolution and others who have expressed their support for the plan. Senate Ag Committee Chairman Pat Roberts, R-Kan., was among Republicans expressing dismay at the resolution. In remarks on the Senate floor, he touted the fact that farmers are the original environmentalists and are adapters of new technology. "Show me a farmer who does not practice conservation or does not have access to the very latest technology and I will show you a farmer in trouble," he remarked. Roberts said he could understand where those drawing up the "Green New Deal" were coming from, but called on them to "catch up with the agriculture committee and with farm country."

FSA Announces Conservation-Related Help for Nebraska

FSA has approved emergency grazing of Conservation Reserve Program (CRP) acres for all Nebraska counties due to the flooding, Nebraska FSA State Executive Director Nancy Johner announced. She also announced 45 Nebraska counties have been approved to begin accepting applications for the Emergency Conservation Program (ECP) to address damages from recent flooding. The allowance for emergency grazing of CRP acres is effective immediately and runs through April 30. Producers will be required to contact their local FSA office to complete required paperwork before being able to utilize their CRP acres under the emergency action. There will be no rental reduction for those CRP contract holders to utilize their acres for emergency grazing and they are not allowed to charge livestock producers to graze the acres. ECP helps producers with the recovery cost to restore agricultural land to pre-disaster conditions, with those approved for ECP receiving up to 75% of the cost of approved restoration activity.

Washington Insider: Bloomberg Cautions on New NAFTA Outlook

Bloomberg is reporting this week that the president’s new NAFTA – U.S.-Mexico-Canada Agreement (USMCA) – is “running out of room” to find a path to congressional approval. The report says that the administration’s biggest hurdle is “educating new lawmakers on trade priorities.” In addition, Bloomberg notes that for approval of his new NAFTA to become law “he’ll need the help of a political rival with a track record of blocking such deals.” In 2008, Nancy Pelosi, D-Calif., was House Speaker when Democratic lawmakers denied President George W. Bush’s request for a vote within 90 days on a trade pact with Colombia. The rejection delayed approval of deals the Bush administration negotiated with South Korea and Panama, though all three were later ratified. Once again Speaker, Pelosi will play a pivotal role for the administration’s renegotiated accord with Mexico and Canada – which isn’t one of her legislative priorities. “If the House doesn’t want to move on this, it doesn’t have to. So it’s really up to her,” said Edward Alden, a trade expert at the Council on Foreign Relations. Pelosi is expected to move the deal through the House only if she can find a critical mass of her caucus supporting it and if she extracts concessions unrelated to trade from the White House in return, senior congressional aides say. With 60 new Democratic members who still have to familiarize themselves with their districts’ priorities and the content of the trade deal, the biggest challenge is educating lawmakers, the aides said. U.S. Trade Representative Robert Lighthizer is expected to meet with freshman members in the coming weeks to make his case. Lighthizer is already wooing Democrats to support the updated NAFTA and sympathetic groups are thought to include the New Democrat Coalition, which includes 100 lawmakers who back pro-growth policies. However, the administration expects a tougher challenge from the party’s left flank that includes newcomers including some who identify as democratic socialists and back a sweeping plan to reduce carbon emissions, Bloomberg notes. “That’s the most amorphous piece of this: When is the caucus happy enough that she feels confident moving this? Hard to say," said the National Foreign Trade Council’s Vanessa Sciarra, referring to Pelosi. Bloomberg also notes that some Democrats are calling for changes to sections of USMCA dealing with labor standards and drug patents. The pact commits Mexico to reform its labor laws to allow workers to engage in collective bargaining. But senior Democrats have said the commitments are lack adequate enforcement provisions. America’s biggest federation of labor unions, the AFL-CIO, has said it won’t support USMCA in its current form and would oppose it if the business community forced a “premature” vote. “What we hear on the Hill is the same thing we’re saying: It’s not ready to be voted on,” AFL-CIO President Richard Trumka told Bloomberg on Friday. In addition, Mexico and Canada have warned they may not ratify USMCA unless the U.S. lifts tariffs on steel and aluminum – duties that also are unpopular with lawmakers from Trump’s own Republican Party. For example, Chuck Grassley, R-Iowa, the chairman of the Senate Finance committee, said the agreement wouldn’t be considered as long as the duties remain in place. The administration can make tweaks to the agreement to mollify concerns, but major revisions would require reopening talks with Mexico and Canada, a scenario Lighthizer has ruled out. Canadian Foreign Minister Chrystia Freeland met with Lighthizer and Democratic lawmakers earlier this week in Washington, where she discussed USMCA and urged the removal of metals tariffs. However, time is not be on the administration’s side, Bloomberg thinks. A report on the pact’s economic impact is expected in mid-April and following that, the administration expects to submit legislation to implement the agreement. But if the deal isn’t passed by the time Congress leaves town in August, it may be doomed to languish until after the presidential election in November 2020. Senator Ron Johnson, R-Wis., told Bloomberg that Republicans tried to press the administration to ratify the deal when they controlled the House. “Now, it’s going to be a heavy lift, I fear," he told Fox News. The president has repeatedly threatened to withdraw from the existing NAFTA to pressure lawmakers to approve his new deal, a plan that Pelosi calls “not a good idea.” On Friday, the president said if congressional Democrats don’t ratify USMCA, his alternative would be to “maybe go pre-NAFTA” with trade practices in North America. But with a strong economy expected to be one of Trump’s campaign talking points, he may be more hesitant now to pull the plug. “It’s pretty clear that he’s not willing to take that gamble, given the effect that would have on markets ahead of the 2020 election,” said Alden, of the Council on Foreign Relations. With very important trade deals and policies under consideration in several regions, these ongoing talks are critical to future sector growth — and should be watch closely by producers as they intensify, Washington Insider believes.

Agricultural operations in flooding areas continue to struggle to return to normal

While historic floodwaters that ravaged northeast and north-central Nebraska and parts of Iowa are receding, agricultural operations continue to struggle to return to normal. Ethanol plants and feedlots, in particular, continue to have trouble shipping ethanol and sourcing feedstocks, as many rail lines across the region continue to be down and highways in shambles. Tom Feller, president and CEO of Feller and Company Cattle Feeder that operates along the Elkhorn River in Wisner, Nebraska, said his feedlots are battling higher transportation costs as they work to repair a key roadway into their property. "Our bridge road south of Wisner is out," he said. "South of Wisner is home to about 70,000 cattle. We have cattle on both sides of the Elkhorn River, which causes us added expense of $500 per day to go 22 miles around through Pilger with feed. "All our employees' drive time is greater also. We do have a back road out of our feedlot, so we are bringing corn, hay, etc. in a back driveway. We are hauling the dirt into the bridge approaches from the feedlot, so hopefully this week we can get bridge open and back to normal," he said. Mike Drinnin, owner and manager of Drinnin Feedlots Inc. in Columbus and Drinnin West Cattle Company in Palmer, said damaged highways into Columbus continue to cause problems for his operation. "To ship cattle from our Palmer yard to Cargill (Schuyler, Nebraska) adds at least $250 per load to delivery costs," he said. "Byproduct that we normally source out of ADM (Archer Daniels Midland) Columbus has to come out of Aurora, (Nebraska), and with the extra miles to get to Columbus, adds at least $15 per ton to the cost delivered. Rail lines need to be fixed west of Columbus, and Highway 30 from west into Columbus needs to have extensive repair." The Nebraska Department of Transportation and the railroad have been "working day and night to get things moving," Drinnin said. J.P. Rhea, feedyard manager for Rhea Cattle Company in Arlington, said with the ADM Columbus and other ethanol plants down in the area, his operation has had difficulty sourcing distillers grain.

Canada, Mexico, Continue to Press for Removal of Steel, Aluminum Tariffs

Canada and Mexico this week are again pressing the Trump administration to remove steel and aluminum tariffs. Canadian Foreign Minister Chrystia Freeland met with U.S. Trade Representative Robert Lighthizer earlier this week and threatened to withhold ratification of the U.S.-Mexico-Canada Agreement if the duties remain in place, according to Politico. Agriculture Secretary Sonny Perdue and others have previously said that if the tariffs remain in place following the implementation of the USMCA, the tariffs would offset any gains reached in the agreement. Specifically, Freeland of Canada is urging the administration to lift the tariffs without replacing them with a quota, telling reporters “Canadians feel the right thing is there should be no 232 tariffs or retaliatory measures between our two countries.” A trade official from Mexico echoed the comments, saying “what industry in North America needs is the elimination of this tariff.”

Trump Effort to Change China Trade Drawing Global Support

The efforts by the Trump Administration that seek trade policy changes by China are drawing global support. Reuters reports the European Union shares many of the same frustrations over China’s technology transfer policies and market access constraints and is a “quiet supporter” of Trump’s efforts with China. That comes though as the U.S. is seeking trade talks with the EU, as well, which agriculture is a key sticking point. The ongoing talks with China continue later this week, and the Trump administration claims to be in the final stages of the negotiation. Agriculture Secretary Sonny Perdue has previously said China could double, or even triple its purchases of U.S. agricultural products as part of a trade agreement. The current tariff climate between China and the U.S. slowed China’s purchases of U.S. farm products, including soybeans and pork. Originally thought to be completed at the end of March, some experts now say a deal may be finalized early this summer.

Upper Midwest Farm Bankruptcies on the Rise

The Minneapolis Federal Reserve Bank reports farm stress and bankruptcies have increased in the upper Midwest, which includes dairy country. The Federal Reserve Ninth District reported 103 chapter 12 bankruptcies in 2018, compared to 79 in 2017. Farmers in the region continue to face low prices for commodities, including dairy products, and high production costs. Total costs for inputs like seed, fertilizer, pesticide, fuel, and electricity have risen by 50 percent since 2006 for Minnesota farmers. The district of the Federal reserve includes parts or all of Minnesota, Montana, North and South Dakota, Wisconsin and Michigan. Dairy farmers in particular have seen hard times, with overproduction and low prices. Many farms have gone out of business or shifted to other agricultural production sectors, while surviving dairies are growing. Bankers apparently don’t have the optimism of farmers either as the Minneapolis Fed reports the most recent quarterly ag credit survey conducted in January found that bankers widely predicted lower capital spending and net farm income for the coming three months, as well as more weakness in loan repayments.

FSA Permits Emergency Grazing on Conservation Reserve Program Acres in Nebraska

The Farm Service Agency this week authorized emergency grazing of Conservation Reserve Program acres for 45 Nebraska counties impacted by the recent weather events. The emergency grazing authorization is effective immediately and ends April 30, 2019. The authorization was granted to address the impacts of the recent extreme weather, including flooding, snowmelt and mud. CRP contract holders who are interested in using the emergency grazing authorization must contact their FSA county office to complete required paperwork before allowing grazing to begin. Farmers should also contact their local FSA office to report all damages and losses. CRP participants who use this option will need to obtain a modified conservation plan, which includes emergency grazing provisions, from the Natural Resources Conservation Service. CRP participants can allow others to use their CRP acres under the emergency grazing authorization. However, the livestock owners also will need to complete FSA paperwork indicating their grazing land was adversely impacted by severe weather.

Flooding Impact Could Include Thousands of Rural Water Wells

Thousands of water wells are located within flooded areas of the Midwest that could be contaminated with E. coli, according to the National Ground Water Association. The Association says the number of wells impacted could be substantial because a large portion of the Midwest affected by flooding relies on groundwater for rural and small municipal water supply. Household, farm, and small business wells could be standing in water for several days, raising the potential for contamination. While the exact number of wells possibly affected by contaminated floodwater cannot be readily counted, Census Bureau data show over one million wells in 300 counties impacted by flooding. This estimate includes counties flooded in Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin during the March 2019 winter storm. Following a flood, disinfection and wellhead repair may be common needs among well owners. Well relocation and elevation may also be useful and protective. The association says well owners should continue to monitor and test their systems.

USDA Announces Investments in Water and Wastewater Infrastructure in 23 States

The U.S. Department of Agriculture Tuesday announced a $116 million effort to help rebuild and improve rural water infrastructure for 171,000 rural Americans in 23 states. USDA is working with local partners to provide financing for 49 water and environmental infrastructure projects. The funding is being provided through the Water and Waste Disposal Loan and Grant program. It can be used for drinking water, stormwater drainage and waste disposal systems for rural communities with 10,000 or fewer residents. Acting Assistant to the Secretary for Rural Development Joel Baxley called the funding "foundational to health, safety and economic development." One of the larger projects includes a $2.3 million loan for Lake City, Arkansas, to modernize its wastewater treatment and collection system, which serves more than 2,000 residents. Another effort in rural Northwest Indiana includes a $3.4 million loan and a $1.7 million grant to connect three unserved areas of the city to the sewer system and to replace the main water lift station. Find the list of projects at www.rd.usda.gov.

Brazil inspection mission timetable set

Less than one week after talks with USDA officials, Brazil says an inspection mission timetable that could open the door to a resumption of shipments of Brazilian beef to U.S. markets has been established. Brazil’s Ministry of Agriculture, Livestock and Food Supply says a USDA audit of the inspection system of its “agricultural establishments” will take place between June 10 and June 28, according to a statement on its official website. The announcement followed the release of a joint statement outlining efforts to build a future partnership that could reduce trade barriers on meat products. Concerns about the safety of Brazilian beef prompted USDA Secretary Sonny Perdue to suspend all imports of fresh Brazilian beef in June 2017 in the wake of public health concerns, sanitary conditions and animal health issues, USDA announced at the time. USDA at the time noted that the rejection rate of 11 percent for Brazilian beef was substantially higher than the 1 percent rejection rate for fresh beef arriving from the rest of the world. The upcoming USDA inspections are intended to verify that Brazilian meat products and the plants where they are processed meet USDA sanitary requirements, Brazilian officials announced. A report of the findings are expected to be released on an unspecified date, the announcement added.

Tuesday, March 26, 2019

USDA Lowers Rate of Increase For Grocery Store Price Outlook

USDA now expects food price inflation for food at home (grocery store prices) to be 0.5% to 1.5%, down from their prior outlook for those prices to increase 1% to 2% in 2019 compared to 2018. USDA economists followed a similar pattern with their forecast for 2018 grocery store prices, initially setting the outlook at one percent to two percent, but trimming it to 0.5% to 1.5% in February 2018 with another revision down to steady to up 1% in July. Grocery store prices in 2018 ended up rising 0.4% after having posted annual declines in 2017 and 2018. Compared to February, USDA analysts downgraded their outlooks for several commodities relative to grocery store prices, including meats, poultry and fish, dairy products and fruits and vegetables. USDA trimmed the forecast decline in egg prices and increased its outlook for cereals and bakery products and nonalcoholic beverages. USDA did not change its outlook for overall food price inflation, leaving it at 1.5% to 2.5% compared with a 20-year average of 2.3%.

USDA Sets Enrollment for 2018 MPP For Some Dairy Producers

Dairy producers who enrolled in the Livestock Gross Margin (LGM) insurance product for the 2018 calendar year can now enroll to retroactively participate in the Margin Protection Program (MPP) for that year. Previously, those with the LGM insurance were unable to participate in MPP, but the signup running through May 10 will allow those producers to be able to get a one-time MPP payment for 2018. Producers will be required to visit their local Farm Service Agency office to signup for the limited retroactive MPP program. USDA said this will apply to a "limited' number of dairy producers. The option to get the 2018 MPP coverage in addition to having the 2018 LGM coverage was authorized in the 2018 Farm Bill. USDA is still working on getting the new Dairy Margin Coverage (DMC) program ready to roll, with USDA Secretary Sonny Perdue saying the agency will have portions of it ready to go next month.

Washington Insider: China Promises Openness in Push for US Deal

There is a lot of activity between the U.S. and China these days as well and important promises are being offered. For example, the New York Times says that top Chinese economic policymakers “promised this weekend that Beijing was ready to open up the country’s economy to more market-based competition and international trade.” Clearly, contacts between the two countries have intensified, the Times says. Senior American officials are scheduled to go to Beijing in the coming days for trade talks, with Chinese officials then headed to Washington the following week in an attempt to wrap up a deal. The Times also says that Chinese officials have “an extra incentive in pledging to loosen their hold over the world’s No. 2 economy – and not just to the Trump administration.” In addition to a trade war that is hitting the country’s exporters, China’s economy has also been hurt by private sector business leaders who have become increasingly cautious in recent months about making new investments. Key developments in China include a slowing economy that creates “a self-reinforcing cycle of skepticism that further private investments will be profitable.” State-owned enterprises have claimed a growing share of the loans available in the economy, a sign that the government may be crowding out the private businesses that could drive future growth. The promises of economic opening may sound familiar. Chinese officials have said for years that they were ready to allow foreign competitors to enter their market on a more equal footing, with slow progress. The tone of remarks at this weekend’s session of the China Development Forum, the country’s premier annual economic policy conference, was nonetheless “striking” and coordinated, the Times says. It lists several examples. Han Zheng, one of the seven men who run the country as members of the Communist Party’s Politburo Standing Committee, said that China wanted to keep increasing imports. “We do not strive for a trade surplus,” he said. Yi Gang, the governor of the central bank, said that China wanted more foreign investment. He said the government was looking for ways to let foreign investors trade derivatives and other financial instruments so as to limit their exposure to risk. Such a move could mean loosening Beijing’s controls over the value of its currency — a politically sensitive subject, and one in which Beijing has a mixed record — and Yi offered no details. Han, Yi and other senior officials took turns extolling a new foreign investment law approved by China’s legislature on March 15, describing it as a carefully thought-out framework for making the country a more appealing place to invest. However, foreign lawyers have described the new law as vague, noting that a third of the provisions are no longer than one sentence each and that domestic companies are still covered by separate legislation. China has made similar offers ever since President Trump visited Beijing in November 2017, as part of an effort by Beijing to woo support from Wall Street during the trade war. At the same time, President Trump’s remark on Friday that the United States would keep its 25% tariff imposed last summer on $50 billion of Chinese goods drew irritation at the forum. For the United States to insist on keeping tariffs could “ruin the whole base of this negotiation,” said Zhu Min, an influential adviser on economic policy issues in Beijing and a former senior central banker in Beijing and former deputy managing director of the International Monetary Fund in Washington. The Trump administration had consistently taken a hard line on retaining the tariffs on the $50 billion a year in goods. The administration has been much more willing to discuss removing a 10 percent tariff imposed last autumn on another $200 billion a year in goods. But corporate lobbyists in Washington have mounted a strenuous campaign for the repeal of all tariffs, including on the $50 billion in goods. Chinese officials have been hoping that campaign would be successful. An extensive interagency effort by civil servants and political appointees produced the $50 billion list of products. They came up with product categories in which they did not want the United States to become more dependent on China. Some products were included for reasons of national security, like components for nuclear reactors and aircraft. At a separate gathering on Friday afternoon that was organized by the Center for China and Globalization, a Beijing research group, former senior American and Chinese officials also expressed worry about whether the broader relationship between China and the United States could be quickly fixed even if a trade deal were reached soon. In spite of widespread signs of interest in reaching a deal between China and the United States, there are still important hurdles to be surmounted, both in China and the US. However, the negotiations increasingly appear to be serious and highly focused and should be watched closely by producers as they proceed, Washington Insider believes.

Flood Damages Estimated at $3 Billion

Damages from flooding in the Midwest are now estimated to top $3 billion, with threats of more flooding on the horizon. President Donald Trump has approved federal disaster declarations for counties in Iowa and Nebraska. Iowa officials say agriculture losses are at least $214 million. The Missouri River flooding will continue as an above normal snowpack in the North begins to melt and move downstream. Forecasters warn the flooding could continue through May. Meanwhile, other states in the region have also experienced severe flooding, including Illinois, Missouri, South Dakota and Wisconsin. With Congress back in session, the growing price tag could ramp up pressure on lawmakers to offer additional aid, according to Politico, as flood relief will be in the mix when the Senate takes up a House-passed $14.2 billion disaster aid package. The Senate is expected to vote on the measure this week.

Farm Futures Planting Survey Shows Less Corn Acres than USDA

Farmers indicate they may plant less corn than previously thought by the Department of Agriculture, according to the annual Farm Futures planting survey. The survey of 1,000 producers nationwide says that after planting more soybeans than corn in 2018 for the first time in 35 years, farmers want to return to more normal rotations this spring. However, with the impact of trade tariffs, weather and current conditions in the farm economy, many are looking for alternative crops. The survey reported corn acreage at 90.9 million, up 1.7 million from last year. The 1.9 percent increase was less than the 92 million in the USDA forecast over the winter. Farmers expect soybean plantings at 85.9 million, down 3.3 million, or 3.7 percent from last year. Still, soybean acres are reported higher than the 85 million USDA forecasted recently. The survey also found winter wheat plantings are expected at 31.3 million acres, which would drop all-wheat seedings to 45.9 million, down 2.4 million or 5.1 percent from 2018. That would be the lowest total since at least 1919

Importers of Illegal Pork May Face Fine

The illegal pork discovered by border agents from China could lead to fines for the importer of the products. However, the exporter, being China, is not likely to be penalized, according to officials, who say “It’s very difficult to penalize an exporting country,” adding “You have to have a very large burden of proof to prove what they’re doing,” as reported by Reuters. The U.S. and other nations remain on high alert to illegal imports of pork from nations with African swine fever. Customs Border and Protection say the shipment recently found included pork, but not all items in the one-million-pound shipment were pork, as previously announced. The containers seized also had noodles and tea bags that were used to facilitate the unlawful import of pork products. Because China has wide-spread African swine fever, U.S. agriculture and border officials say the imported pork may contain the virus, which is a threat to the U.S. pork industry. However, the U.S. will not test the product to confirm that, as officials say all products found in violation of U.S. regulations are destroyed.

Coalition Urges Full Funding for Farm and Ranch Stress Assistance Network

A coalition of agriculture groups Monday urged Congress to fully fund efforts to improve mental health in rural America. The groups, including the National Farmers Union, asked Congress to fully fund the Farm and Ranch Stress Assistance Network in fiscal year 2020. The program provides grants for extension services, state departments of agriculture, nonprofit organizations and other entities to provide stress assistance programs to farmers, farmworkers and others. The groups noted the current prolonged farm economy downturn is causing even greater stress for farmers and ranchers, as net farm income in 2018 was nearly 50 percent less than it was in 2013. Congress provided $2 million in the fiscal year 2019 appropriations bill for a pilot of the program. A letter from the coalition sent to the Senate and House agriculture appropriations subcommittees urged lawmakers to fully fund the program at $10 million, calling the effort “critically important” to meeting the mental health needs of farmers.

American Academy of Pediatrics Supports Soda Taxes

Health organizations Monday called for additional taxes on added sugars, like those on sodas and other sugary drinks. In a joint policy statement, the American Academy of Pediatrics and the American Heart Association endorsed a suite of public health measures, including excise taxes, limits on marketing to children, and financial incentives for purchasing healthier beverages, all designed to reduce kids' consumption of sugary drinks. The groups cited evidence of association between added sugars and increased risk of heart disease and other long-term health problems. The groups point out that the 2015-2020 Dietary Guidelines for Americans recommend that children and teens consume fewer than ten percent of calories from added sugars. But, data shows that children and teens now consume 17 percent of their calories from added sugars, nearly half of which comes from drinks alone. So, the groups say local, state and national policymakers should consider raising the price of sugary drinks, such as via an excise tax, along with an accompanying educational campaign, and say tax revenues should go in part toward reducing health and socioeconomic disparities.

AFBF Launches Women in Ag Survey

The American Farm Bureau Women’s Leadership Program has launched “Women in Ag,” an online survey that aims to gauge the goals, aspirations, achievements and needs of women in American agriculture in a variety of areas. All women who are farmers, ranchers, farm employees, employed in agricultural businesses, pursuing ag-related higher education or supportive of agriculture in other ways are invited to participate in the survey at fb.org/women. Respondents must reside in the United States and Farm Bureau membership is not required to participate. The survey asks women in-depth questions about how they are connected to agriculture and what leadership skills they think are most important today, as well as the top business challenges they’re facing. Data collected from respondents will be used to gauge trends related to the achievements of women in agriculture, including leadership positions, business successes and election to public office. Results from the survey are slated for release in the fall and will add to findings gleaned from a similar survey conducted in 2014. Participants will be entered to receive one of five $100 gift cards after the survey closes on June 21.

Monday, March 25, 2019

Focus This Week is on Disaster Aid

A procedural vote in the Senate could come Tuesday on a disaster aid plan in the Senate. Details are uncertain just yet as there is likely some consideration being given to the heavy Midwest flooding situation. The version most recently was for $14.2 billion. A House-passed supplemental appropriations bill would authorize $3 billion in assistance for agricultural losses, largely directed at hurricane damage to crops in the Southeast last fall. But some think that the Midwest flooding will give lawmakers some pause and they will include amounts for those affected producers. USDA Secretary Sonny Perdue expressed view a Midwest flooding aid should be included in any aid plan as USDA disaster assistance programs are unlikely to be sufficient.

US-China Trade Talks Another Attention Point

A US trade negotiating delegation will be in Beijing late this week. Led by U.S. Trade Representative Bob Lighthizer and Treasury Secretary Steven Mnuchin, the two will visit Beijing for two days beginning Thursday for another round of trade negotiations with Chinese Vice Premier Liu He. These will be the first face-to-face talks since President Donald Trump delayed a March 1 deadline to raise tariffs on $200 billion worth of Chinese imports. A Chinese delegation led by Vice Premier Liu He will be in Washington to continue the talks starting April 3. The goal is to button down an agreement by the end of April.

China Purchases U.S. Sorghum, Corn as Trade Talks Continue

The Department of Agriculture reports China last week made another 2.6-million-bushel purchase of U.S. sorghum, to the delight of the National Sorghum Producers. China also announced significant purchases of U.S. corn last week. The purchase occurred as China confirmed continuing the ongoing trade talks with the United States. U.S. Trade Representative Robert Lighthizer and Secretary of the Treasury Steven Mnuchin will meet with Chinese constituents in Beijing later this week. President Trump has also made comments saying he is pleased with positive direction U.S.-China trade negotiations have taken. Concerns remain, however, after President Trump said last week he would keep tariffs in place on $250 billion worth of Chinese goods until it is clear Beijing is complying with any trade deal that is reached. That could be further concerning if China doesn’t agree to remove trade tariffs on U.S. agricultural products implemented as part of last year’s tit-for-tat trade war. Still, signs remain that the trade talks are progressing and could be finalized by early this summer.

Growth Energy Calls on DOT to Provide Rail Assistance During Midwest Flooding

Growth Energy CEO Emily Skor is calling on the U.S. Department of Transportation to help expedite rail delivery of biofuels amid historic flooding. Flooding in a four-state area has delayed transportation of critical supplies of biofuel, which in turn, could impact consumer fuel costs. Rail lines in Nebraska, Iowa and Missouri remain closed with many washouts reported from the flooding. Those rail lines are critical for the daily operation of biofuels facilities in the Midwest to receive and distribute its products. In her letter to U.S. Transportation Secretary Elaine Chao, Skor said: “Further delays could not only impact our industry, but could also ultimately increase fuel costs for American drivers.” Ethanol plants report some damages, delays or even closures as flood waters inundated Nebraska and the Missouri River bottom grounds, home to ethanol facilities and critical rail lines for the region. President Trump issued a federal emergency declaration for Nebraska last week.

USDA Assisting Producers in Flooded Areas

The Department of Agriculture is offering assistance to farmers and ranchers affected by the devastation caused by historic flooding in the Midwest. Agriculture Secretary Sonny Perdue says USDA staff in the regional, state, and county offices are responding and providing a variety of program flexibilities and other assistance to residents, producers, and communities. Perdue encouraged farmers to contact their local USDA Service Center, as USDA will “do everything in their power” to assist producers. USDA can help producers with the Livestock Indemnity Program, Emergency Assistance payments, along with resources through the Environmental Quality Incentives Program, and others. The department can also assist rural communities in removing debris, and offers technical assistance, loans, grants, and loan guarantees to rural communities and individuals to assist with the construction or rehabilitation of utility infrastructure including water and wastewater systems, community infrastructure, and housing.

Dairy Producers Enrolled in Livestock Gross Margin Program Eligible for 2018 MPP

Dairy producers who participated in the Livestock Gross Margin for Dairy Cattle Program now can participate in the Margin Protection Program for Dairy for 2018 coverage. The Department of Agriculture announced the eligibility last week. Producers enrolled in 2018 LGM-Dairy, administered by USDA’s Risk Management Agency under 2014 Farm Bill, were ineligible for coverage under MPP-Dairy, a safety net program available through USDA’s Farm Service Agency. FSA Administrator Richard Fordyce says changes in the 2018 Farm Bill “includes the ability for producers with LGM coverage to retroactively enroll in MPP-Dairy for 2018.” The MPP-Dairy program offers protection to dairy producers when the difference between the national all-milk price and the national average feed cost falls below a certain dollar amount selected by the producers in a dairy operation. LGM-Dairy is an insurance product that provides protection when feed costs rise, or milk prices drop. This retroactive sign-up is only for dairy producers with 2018 LGM coverage who produced and marketed milk in 2018 but did not obtain full year MPP-Dairy coverage.

Canada Expanding Detector Dog Program for ASF Defense

Canada, like the United States, is increasing its defense against African swine fever. Canada recently announced it would more than double the total number of detector dog teams at Canada’s airports within five years. The plan includes new funding of up to $31 million to add 24 Food, Plant, and Animal Detector Dog Service teams for a total of 39. Canada says the new teams are being deployed to help prevent illegally imported meat products from entering into Canada. Canada, like the U.S., is bolstering its efforts to detect potentially illegal animal products from entering its borders as African swine fever remains a threat. Detector dogs in the U.S. recently discovered one million pounds of pork illegally imported from China, where African swine fever is wide-spread. Agriculture and Agri-Food Canada says in a news release that meat and meat products from countries affected by African swine fever “present one of the greatest risks for introducing this animal disease to Canada.”

MillerCoors Suing Anheuser-Busch of Corn Syrup Commercials

MillerCoors has filed a lawsuit against Anheuser-Busch over its series of commercials on the use of corn syrup in the brewing process. Bud Light doesn’t use corn syrup, and MillerCoors does. The lawsuit filed last week alleges the ads are false, misleading and part of a plot to frighten drinkers of Miller Lite and Coors Light to favor of Bud Light, according to the Milwaukee Journal Sentinel. MillerCoors says that contrary to what the ads suggest, there is no corn syrup in the final product, as corn syrup is used only as a fermentation aid and is completely turned into alcohol by the time it is finished. The brewer alleges Anheuser-Busch is deliberately playing on consumers' ignorance that ordinary corn syrup is different from the controversial high-fructose corn syrup. Anheuser-Busch started the conflict with a Super Bowl commercial, which prompted anger amongst corn farmers. MillerCoors is asking a federal court to halt the ads and force Anheuser Busch to launch a new campaign "to correct the false and misleading impressions."

MWGA To Host Bighorn Panel Discussion

The Montana Wool Growers Association will host a Bighorn Sheep Panel on March 29 between Washington State University and the Montana Department of Fish, Wildlife and Parks to present, review and discuss sheep research efforts. Specifically, the panel will discuss recent research/findings at WSU concerning the management of bighorn and domestic sheep. Dr. Mike Mitchell of the University of Montana Wildlife Co-Op Unit will moderate the discussion. A panel discussion between landowner producers and FWP will include sheep producers Nina Baucus, John Helle, and John and Betty Sampsel. The meeting will be held from 1 to 5 p.m. at MT Wild, 2668 Broadwater Ave. in Helena, Mont.

Montana FSA Looking To Fill Three Full-Time Loan Officer Trainees

The Farm Service Agency (FSA) is an exciting and rewarding place to start, build, and/or continue your career. Be part of our team and support the well-being of Montana agriculture and the American public. The Montana Farm Service Agency (FSA) is seeking to fill three full-time, permanent Farm Loan Officer Trainees positions at County Field office locations. These positions will be assigned to the Farm Service Agency in the Farm Loan Branch, located in Billings, Cut Bank, and Miles City, Montana. FSA’s diverse culture and benefits allow for a healthy balance between your career and home life. In addition to a generous salary, positions with FSA offer benefits such as health insurance, life insurance, 401(k) plan, paid holidays, vacation and sick leave, and flexible work schedules. Potential applicants interested in learning more about open positions with the Montana Farm Service Agency and/or applying for these positions should click on the link below: Farm Loan Officer Trainee Locations: Billings, Cut Bank, and Miles City, Montana Dates Open: March 15, 2019 to March 25, 2019 Salary Range: $33,394 to $72,437 per year Link: https://www.usajobs.gov/GetJob/ViewDetails/527550400 Announcement Number: FSA-19-10442794-MP-WY-MT-KGApply at: www.usajobs.govhttp://www.usajobs.gov Questions? Please contact your local FSA Office.

Montana Governor Announces Grizzly Bear Advisory Council

Governor Steve Bullock today announced that he will establish a Grizzly Bear Advisory Council to help initiate a statewide discussion on grizzly bear management, conservation and recovery. The Council will be selected through an application process that ends April 12th. “The recovery of grizzly bears in the Northern Continental Divide and Greater Yellowstone ecosystems is a great conservation success. Still, official federal delisting has yet to come to fruition,” Bullock wrote in a memo to Montana Fish, Wildlife & Parks Director Martha Williams. “Legal uncertainty has created a void requiring our leadership,” Governor Bullock said. “As bears continue to expand in numbers and habitat, we must identify durable and inclusive strategies to address current issues and prepare for the future. This advisory council represents a key step toward Montana embracing the tremendous responsibility and opportunity of long-term Grizzly Bear recovery and management.” Montana is home, in whole or in part, to four grizzly bear recovery zones designated by the U.S. Fish and Wildlife Service (FWS): the Greater Yellowstone Ecosystem (GYE); the Northern Continental Divide Ecosystem (NCDE); the Cabinet-Yaak Ecosystem; and the Bitterroot Ecosystem. While grizzly bear numbers have surpassed recovery objectives in the GYE and NCDE, they have yet to reach recovery levels in the Cabinet-Yaak and Bitterroot. Grizzly bears in the lower 48 states are officially under the jurisdiction of the FWS, but much of the day-to-day management of bears in Montana is done by FWP in partnership and with oversight of the FWS. The FWS delisted the GYE grizzly bear population under the Endangered Species Act in 2017, but a federal court decision last fall relisted the population. This delayed the delisting process for the NCDE and resulted in an appeal of the GYE decision by the State of Montana and others. Grizzly bear populations continue to expand, in some cases into areas they have not occupied for decades. Management challenges and conflicts have increased. FWP, along with partner agencies such as the U.S. Department of Agriculture Wildlife Services and the FWS, work together to respond to conflicts as they occur. However, the situation has become increasingly complex as bears move into areas of Montana outside of existing recovery zones, such as the Big Hole Valley, Little Belt Mountains, and the plains east of the Rocky Mountain Front. Developing strategies to ensure a timely and appropriate response to these conflicts and addressing the needs of communities and landowners most impacted in these areas are key priorities identified for the advisory council’s deliberations. “We’re excited to work with this advisory council, and we see this as a great opportunity to find a way forward that reflects the values and needs of Montana as it relates to grizzly bear management,” FWP Director Williams said. “A council that is inclusive in its composition will allow for the balanced discussion we need to have.” The Grizzly Bear Advisory Council will be tasked with considering broad strategic objectives, such as: Maintaining and enhancing human safety; Ensuring a healthy and sustainable grizzly bear population; Improving timely and effective response to conflicts involving grizzly bears; Engaging all partners in grizzly-related outreach and conflict prevention; and Improving intergovernmental, interagency, and tribal coordination. The Council will focus on providing recommendations to the Governor’s Office, FWP, and the Fish & Wildlife Commission that are clear and actionable on how to move forward with grizzly bear management, conservation and recovery. It will consider several pressing issues including bear distribution, connectivity between ecosystems, conflict prevention, response protocols, outreach and education, and the role of hunting and necessary resources for long-term population sustainability. Governor Bullock is looking for a broad cross-section of interests to serve on the Council, including livestock producers, wildlife enthusiasts, conservation groups, hunters, community leaders, Tribal Nation representatives and outdoor industry professionals. Council application information can be found online

Friday, March 22, 2019

Unchanged Interest Rates in 2019 Better for Agriculture

With the Federal Reserve hinting at leaving interest rates unchanged in 2019, the farm economy has one less chance for deterioration. Low-interest rates have been cited as the reason the current farm economy has not reached the crisis seen in the 1980s. Politico reports that while farmers are having losses, those losses don't compare to the 1980s when interest rates were between 10 and 20 percent, compared to the five or six percent rates seen today. Despite declining farm income and low commodity prices, the low-interest rates are keeping land values strong. The Federal Reserve bank this week signaled interest rates will not likely be raised in 2019, veering away from the previous plan that included two interest rate hikes this year. Chairman Jerome Powell noted that there is "major uncertainty" regarding the U.S. economic picture, suggesting that the outlook is overall positive, but growth "is slowing somewhat more than expected."

EPA Likely to Grant Partial Biofuel Waivers for 2018

The Environmental Protection Agency is poised to issue partial waivers to some of the 39 refiners asking for a reprieve from the Renewable Fuel Standard. Reuters reports the EPA is set to decide on its pending 2018 exemption applications by the end of March, the compliance-year deadline under the RFS. Officials close to the issue say the EPA seems likely to issue partial waivers, a move only made once by the EPA in the past. Expansion under the waiver program has angered farmers, as the waivers reduce ethanol demand. Just last week, reports showed ethanol consumption declined last year for the first time 20 years in the United States. Under the trump administration and then EPA administrator Scott Pruitt, the number of small refinery exemptions granted went from seven in 2015 to at least 34 in 2017. The waivers are intended for small refiners, but the EPA granted waivers to facilities owned by billion-dollar oil companies, including Chevron and Exxon Mobil.

Flood Losses Include Fields, Facilities and Stored Grains

Flood losses along the Missouri River include farm ground and farm facilities, along with stored grains and livestock. The flooding came quick for many, leaving little time to evacuate farm products, animals and equipment. Those damages, topping $1 billion from flooding in a four-state area, includes rural roads, bridges and public infrastructure such as schools. Lawmakers are prepping to quickly consider adding the flooding to a large disaster bill when Congress returns to session next week. However, officials in states like Nebraska say the impact is not yet tallied, as the adverse conditions linger. Meanwhile, flooding continues to move downstream, and weather officials warn of more flooding this spring as the snowmelt begins and broken levees leave large areas unprotected. The National Weather Service Kansas City office reported Thursday the Missouri River was discharging 315,000 cubic feet per second at Rulo, Nebraska, where the river beat its 1993 records earlier in the week. NWS says that’s enough water to fill Kansas City’s Arrowhead Stadium in under nine minutes. The stadium has room for more than 76,000 football fans and stands 260 feet tall.

Long Term Outlook Shows Trade Issues to Define the Next Ten Years

A long-term outlook from the Department of Agriculture predicts trade will continue to dictate the agriculture sector over the next ten years. Specifically, the report says that over the next several years, the agricultural sector will continue to adjust to the ongoing China-U.S. trade dispute. USDA’s Agriculture Projections to 2028 report out this week shows an improved environment, including a continued increase in trade, supports growing global demand for agricultural products. However, slowing global economic growth rates and a relatively strong dollar are expected to weigh on growth in U.S. agricultural exports. The 102-page report does predict increases in nearly all U.S. agricultural exports, adding developing countries will continue to account for most of the growth. However, regarding China, trade tariffs are limiting demand, and the report assumes those tariffs to continue through the projection period. Any trade outcome with China could drastically change U.S. exports to China, making the trade talks a vital step for the next ten years.

Pork Essentially Free of Veterinary Drug Residues

A survey by the Department of Agriculture shows no veterinary drug residues were found and none at levels that even approached U. S. regulatory limits in pork samples. The Survey by the USDA Agricultural Research Service looked at more than 1,000 pork kidney samples. The findings, according to USDA, signal that U.S. pork producers are using veterinary compounds properly and indicate that veterinary drug residues in pork are not posing a health concern to U.S. consumers. A total of 1040 pork kidneys were purchased from four grocery stores in the Midwest and tested for residues of five commonly used veterinary drugs and feed additives. Pork kidneys are commonly used as an indicator meat as they are readily accessible and tend to concentrate drug residues compared to more commonly consumed muscle meats. Only six samples, or 0.58 percent, were positive when screened for antibiotics, indicating those samples potentially contained antibiotic residues.

Chinese Leaders Visit NCGA Offices

Two business leaders from China visited the National Corn Growers Association's offices this week to discuss the U.S. corn industry and NCGA's role in working to create opportunities for farmers. Robyn Allscheid, NCGA director of Research and Productivity, said the visitors were intrigued by NCGA's focused mission of sustainably in a way that is profitable for the nearly 40,000 dues-paying members nationwide, as well as the 300,000 growers who contribute through corn checkoff programs. The two officials from China are part of the U.S. Department of State's Bureau of Educational and Cultural Affairs International Visitor Leadership Program. The program connects current and emerging leaders who travel to the U.S. for programs that reflect their professional interests and U.S. Foreign Policy Goals. Allsheid says they were “were very interested in how farmers make independent planting decisions but also the role the market plays in determining corn prices."

Thursday, March 21, 2019

US-China News Continues to Run Positive, Negative

Statements by President Donald Trump and other officials are continuing a pattern of seemingly getting one step forward and one or even two steps back in the process of reaching an agreement on trade issues between the two. After Tuesday's news flow which saw reports that China was backing away from certain components sought by Washington in any trade deal and then word that top U.S. negotiators were headed to China next week, the pattern continued Wednesday. President Donald Trump said as he left Washington that the U.S. would keep tariffs on Chinese goods for a "substantial period of time," potentially even after a deal is reached. “We have to make sure that if we do the deal with China that China lives by the deal," Trump noted. But he also sounded some positive notes, including that "top representatives" are headed to China next week for negotiations, a reference confirming the reports Tuesday that U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin would head to China for talks. And even despite the warning on tariffs, Trump still labeled the talks as "coming along nicely."

Cruz Says EPA Will Keep Handing Out Small Refiner Waivers

EPA has given "explicit promises" to Sen. Ted Cruz, R-Texas, that the agency will keep granting small refiner waivers under the Renewable Fuel Standard (RFS) and will not retroactively reallocate those waived obligations, according to a report from Bloomberg. Cruz said he extracted those pledges after working with other Republican senators to slow now-Administrator Andy Wheeler's nomination. Cruz said he and others extracted the pledge from Wheeler after warning that their votes were dependent on the administration continuing to lower the regulatory burden for oil refiners. EPA said it would not "backtrack" on what Cruz labeled "vital regulatory relief" by not granting the small refiner waivers. “We are going to hold the EPA and the administrator to those commitments,” Cruz said at the American Fuel and Petrochemical Manufacturers association meeting in San Antonio, Texas. “Those were public commitments that were necessary for his confirmation, and we fully expect him to follow through.”

Washington Insider: Implementing Steel Tariffs

There are a great many questions about the administration’s heavy reliance on tariffs as instruments of trade policy, but one that generally receives little notice is the equity of their application. Bloomberg is reporting this week that a number of firms are now raising questions about the role of the four largest US producers who have made a majority of the objections to other companies’ requests for tariff relief, “sinking many importers’ hopes of escaping the duties.” Nucor Corp., U.S. Steel Corp., AK Steel and TimkenSteel accounted for most of the objections submitted to the Commerce Department concerning steel tariff relief, Bloomberg says, and notes that US Steel and Nucor, respectively, prevailed in getting Commerce to reject tariff relief on 332 out of 333 and 515 out of 544 of decisions recently released, according to Rep. Jackie Walorski, R-Ind. These data show that Commerce has denied more than 90% of applications where an objection was filed, Can Manufacturers Institute President Robert Budway said. Walorski said she was concerned that Commerce may be evaluating “each request in a vacuum” without considering whether companies “can actually produce the cumulative total if they prevail in their objections.” Data on exclusion requests and objections are made public on line where they are posted for comment, although the postings are not always up to date, Commerce notes. For their part, steel producers claimed that they filed only limited objections and did so “in cases where they could produce the steel for which tariff exemptions were sought.” This suggests that producers are relying on the tariffs to hold down supplies, Christine McDaniel, senior research fellow at the Mercatus Center at the George Mason University in Virginia, told Bloomberg. As of Dec. 20, 2018, US producers objected to exclusions on 145.2 million metric tons of steel — well above last year’s domestic production of 81.6 million metric tons, she said. “They would have to literally double or triple their production, which is unheard of,” she said. The American Iron and Steel Institute, the major steelmakers’ trade group, said claims by some opponents of the process are “grossly misleading.” Instead of focusing on the success of any particular request or objection, the focus should be on the impact that the cumulative requests could have. To date, the amount of steel from which US importers have requested relief far exceeds the volume that the entire US imported in 2017, according to the institute. At the same time, delays in getting decisions on 23 exclusion requests filed in June are costly for Mid-Continent Nail Corp., which faces objections from Nucor, according to Adam Gordon of Bristol Group PLLC. While Nucor can produce the products in question, it cannot supply the quantities Mid-Continent needs, he said. Gordon, who represents Mid-Continent, said extraordinary delays in processing exclusions are hurting downstream industries. One of the biggest things that would help speed up the process would be if steelmakers were more candid about their production limitations and choices, he said. Independent Can Co. in Belchamp, Md., has about 24 requests still pending, President and Chief Executive Officer Rick Huether told Bloomberg. Domestic companies lack the capacity to service Independent Can’s needs, he said. Independent Can, which needs an exclusion for tin plate, has spent some $160,000 just on filing the exclusions and paid about $800,000 in tariffs, he said. “For a small company, this is very costly,” he said. A major problem with the system is lack of information on how Commerce makes a decision, trade attorney Bernd Janzen of Akin Gump said. His firm represents Volkswagen Group of America, which is waiting for decisions on requests where objections have been filed. “How do they decide when the requester and the objector say different things?” he asked. Frustration with the delays and general opacity of the system will likely result in litigation, he said. Most manufacturers of industrial products hate the tariffs and the current system and are quick to charge that it raises costs significantly for consumers across the United States. The charges that it adds uncertainty and is widely seen as inequitable are serious shortcomings that will be raised repeatedly as the administration’s trade policies are reviewed in the process of considering approval for the new trade deals now being negotiated — a process producers should watch closely as it proceeds, Washington Insider believes.

Government is adding up how much federal help is needed for flooding

As farmers and ranchers try to get feed to their cattle to keep them alive, or find the ones who have died, the government is adding up how much federal help is needed. According to the eight-page disaster declaration request filed by Nebraska officials, preliminary estimates put agriculture losses from the flooding and blizzard near the $1 billion mark. State officials on Wednesday said the numbers could continue to rise as more-detailed assessments are completed. "Losses to agriculture, the major industry for the state of Nebraska, are already being felt, due to it being calving season," the request said. "Thousands of livestock have perished either due to extreme cold weather, blizzard conditions, or extreme flooding. The loss of water supplies in many areas has caused large concern for large cattle, swine and chicken operations. The farms and feedlots could not be accessed due to floodwater and drinking water for the animals had to be trucked in." So far the Nebraska Cattlemen's Association has estimated feedlot and cow/calf operations have lost $400 million in livestock. Increased transportation costs from infrastructure loss are hitting feedlots to the tune of about $1 million a day, the written request said. In addition, feedlots have lost about $36 million in feed supplies. On the cropping side, state officials estimate a loss of about $440 million. Nebraska Department of Agriculture Director Steve Wellman said on Wednesday that crop estimates include the cost of removing debris from fields, lost supplies stored on the ground and stored grain losses, among other things. As of Wednesday morning, about 375 miles of state roads remained closed. Later on Tuesday night, Nebraska Department of Transportation Director Kyle Schneweis said Nebraska Highway 275 reopened between Wisner and Beemer along the Elkhorn River. About 200 miles of state highways need repair. "We heard from several ag producers about how important this was," Schneweis said on Wednesday. "They can now make way into their fields." The federal disaster declaration request paints an ugly picture for Nebraska's agriculture-based economy.

Midwest Flood Damage Total Approaching $1 Billion

The federal government may have to step in with extra resources to help states like Nebraska and Iowa recover from flood damage. Floodwaters are still receding in the wake of the “bomb cyclone” that hit Midwest states hard and left behind large-scale damage. Ag Secretary Sonny Perdue tells the Fox Business Network that the existing safety net programs probably won’t be enough to cover the catastrophic damage. “Hopefully, we’ll have a supplemental disaster bill out of Congress very soon,” Perdue says. “This may be included in that as well.” Nebraska Agriculture Director Steve Wellman says, “It’s hundreds of millions of dollars, approaching a billion dollars of impact straight to agriculture.” Politico says the damage totals could exceed $400 million in livestock losses and $440 million for crop farmers, who could be forced to delay or even cancel planting entirely. Craig Head of the Nebraska Farm Bureau says, “Those are very early estimates. They don’t even account for the damage done to roads, bridges, barns, fences, and other infrastructure.” Iowa Governor Kim Reynolds says she’s seeking federal aid as soon as possible, citing ruined grain bins and lost livestock. The Des Moines Register says it’s too soon to know the scope of the damage. “Some farms have been completely destroyed,” Wellman said. “We’ll rebound as best we can.”

Brazil Opens Up to More U.S. Wheat Imports

U.S. wheat growers are thrilled about a joint announcement from Washington and Brazil that says the South American country will establish a 750,000-ton quota for tariff-free wheat imports. A Small Grain Dot Org article says U.S. Wheat Associates and the National Association of Wheat Growers welcome the announcement because it fulfills a longstanding obligation under Brazil’s World Trade Organization commitments. U.S. Wheat Associates Chairman Chris Kolstad says they’re grateful to the Trump Administration for championing the interests of U.S. farmers. “Specifically, we say thank you to Chief Agricultural Negotiator Gregg Doud and USDA Under Secretary Ted McKinney for prioritizing Brazil’s WTO commitments,” he says. “This new opportunity gives us a chance to build stronger relationships with Brazilian millers and a more consistent market there for U.S. wheat.” Brazil was the largest importer of wheat in Latin America, as well as the fourth-largest in the world during the 2017-2018 marketing year. The move could bring some relief to U.S. farmers who have lost export sales after President Trump pulled out of the Trans-Pacific Partnership and slapped tariffs on major trading partners, which prompted retaliation against U.S. farm goods.

Jury Finds Roundup Caused Plaintiff’s Cancer

A second California jury found that a man likely developed cancer after being exposed to the Roundup weed killer he used in his yard. The Wall Street Journal says it’s the second case to go to trial over the alleged harm of the popular Bayer product. The six-person jury in the San Francisco-based U.S. District Court will now begin hearing evidence to separately weigh whether Bayer’s Monsanto unit should be held liable. That’s a decision that could bring substantial financial damages against the company as Monsanto will now have to disclose internal documents related to the case. It’s a blow to Bayer, which took over Monsanto’s Roundup product portfolio when it bought the agrichemical giant last year. In a statement after the verdict was announced, Bayer says credible science doesn’t support the plaintiffs’ case and that it plans to “vigorously defend” glyphosate-based products used by both farmers and consumers. The jury will have to decide whether Bayer will have to pay damages to Edwin Hardeman, the 70-year-old plaintiff. His attorneys say they “look forward to presenting this evidence and holding Monsanto accountable for its bad conduct.”

ASF Outbreak Spreading Throughout Asia

The African Swine Fever virus is continuing to march through parts of Asia and Europe. A National Pork Board update says it’s causing increasing disruption to the world’s pork production. Much of the ASF concern centers on China, for good reason, because it’s number one in global pork production. The World Organization for Animal Health now says nearly all of China’s provincial-level administrative units have reported one or more ASF outbreaks. That means all but the far western portion of China now has at least some level of ASF exposure. Official reports now say China has had to cull approximately one million pigs since the outbreak got going last August. However, there are unofficial reports say the actual number of lost animals may be ten times the official number. Economist Steve Meyer with Kerns and Associates, says China’s breeding herd is down 19 percent from a year ago. Total market hogs are down 16 percent from 2018. Non-governmental reports from U.S. pork industry visitors are calling China’s ASF outbreak “endemic,” which means there is little hope of containing the disease or getting rid of it any time soon. Good evidence of this designation is the fact that ASF has now been confirmed in neighboring Vietnam, where 17 provinces in the northern part of the country have confirmed cases of the disease.

DFA Sales Drop More Than $1 Billion in 2018

The largest dairy cooperative in the nation had a “challenging” 2018 and lost a lot in net sales numbers from the previous year. The Dairy Farmers of America cooperative held its annual meeting in Kansas City, Missouri, and reported that net sales fell by $1.1 billion during 2018. That’s a 7.5 percent decrease over 2017. Net sales in 2018 came in at $13.6 billion, while the previous year’s total was $14.7 billion. As most industry folks expected, the decrease is primarily due to lower milk prices. The all U.S. milk price was 8.2 percent lower than the previous year. Prices averaged $16.20 per hundredweight in 2018 compared with $17.65 per hundredweight the previous year. The cooperative’s net income came in at $108.5 million for 2018. That’s an $18.9 million dollar drop from 2017’s income total of $127.4 million. DFA President and CEO Rick Smith says the past year was challenging for many in the dairy farmer community. “However, DFA remains focused on bringing value to our members,” Smith says. “From marketing members’ milk and offering valuable farm services, to expanding our global presence and making strategic investments to strengthen our commercial portfolio, we’re committed to ensuring a strong and sustainable cooperative.” Despite facing challenges in domestic demand, DFA invested in a new cheese and whey processing facility in Michigan during 2018.

Georgia Student Wins National Collegiate Discussion Meet

Kylie Bruce of Georgia is the winner of this year’s American Farm Bureau Federation Young Farmers and Ranchers Collegiate Discussion Meet. The announcement took place at the Farm Bureau’s FUSION Conference. Bruce was awarded the top prize after a discussion on technology as a driving force for innovation in agriculture. Bruce is studying agriculture education and poultry science at Abraham Baldwin Agricultural College and will receive her associate of science degree in May. For those who don’t know, the Collegiate Discussion Meet is designed to replicate a committee meeting where discussion and active participation are expected from each participant. Contestants are judged on their ability to exchange ideas and information on an agricultural topic and find answers or solutions related to it. Bruce qualified for the national competition after winning the Georgia Farm Bureau Collegiate Discussion Meet. As the national winner, she gets a $3,000 scholarship from the CHS Foundation, which sponsors the competitive event. A total of 35 contestants took part in this year’s Collegiate Discussion Meet. The Young Farmer and Rancher Program’s goals are to help younger Farm Bureau members learn more about agriculture, network with other farmers, and realize their full potential as future agricultural leaders.

Wednesday, March 20, 2019

China Could Triple U.S. Ag Purchases

Agriculture Secretary Sonny Perdue this week again said China could triple its purchases of U.S. agricultural products. The U.S. and China are still hashing out the details of a trade agreement, now thought to conclude in June. Perdue told Bloomberg Television this week "we could easily see, if we are able to come to a trade resolution, a doubling or tripling" of normal ag purchases by China over a period of two to five years. China has averaged about $20 billion a year of U.S. ag purchases, before the trade war beginning last year. As part of the talks, China earlier proposed to buy an additional $30 billion of U.S. ag products. Additional massive purchases of U.S. farm products, particularly pork and soybeans which China has targeted in the trade war, would likely be a huge boon for the United States. China began "good-faith" purchases of U.S. agricultural products as the trade talks began in December.