USDA Weekly Crop Progress - Corn Planting Falls Further Behind Average Pace

OMAHA (DTN) -- U.S. corn planting equaled last year's pace as of Sunday, April 28, but fell further behind the five-year average, according to USDA NASS' weekly Crop Progress report on Monday. As of Sunday, 15% of the nation's corn was planted, equal to 15% at the same time last year but 12 percentage points behind the five-year average of 27%. In last week's report, corn planting was 6 percentage points behind the average. "Noticeable progress was made in Missouri, Iowa, Nebraska and Kansas," noted DTN Lead Analyst Todd Hultman. "Minnesota, Indiana, Michigan and Ohio are all 2% planted, and South Dakota has yet to start." Corn emerged, reported by NASS for the first time this season, was estimated at 3%, also equal to last year but slightly behind the five-year average of 5%. Soybean planting was estimated at 3% as of April 28, down from last year's 5% and also below the five-year average of 6%. Planting was still mainly taking place in the Southern states. Like corn, spring wheat planting also fell further behind the five-year average. NASS estimated that 13% of spring wheat was planted as of Sunday, 20 percentage points behind the five-year average of 33%. In last week's report, planting was 17 percentage points below the five-year average. Idaho and Washington are past the halfway mark and lead the planting effort, while progress in the Dakotas and Minnesota is still in the single digits. Winter wheat progress came in at 19% headed as of Sunday, near last year's 18% but down 10 percentage points from the five-year average of 29%. Meanwhile, winter wheat condition continued to improve. NASS estimated 64% of winter wheat was in good-to-excellent condition, up 2 percentage points from the previous week. Fifty-eight percent of Kansas winter wheat was considered in good-to-excellent condition. "States in the eastern Midwest show poor-to-very-poor ratings in the double digits," Hultman noted. Sorghum was 20% planted, compared to 26% last year and a 25% five-year average. Cotton planting was 11% complete, compared to 12% last year and a 13% average. Rice was 38% planted, compared to 54% last year and a 57% average. Twenty-seven percent of rice was emerged, compared to 28% last year and an average of 37%. Oats were 43% planted as of April 28, compared to 38% last year and a 61% average. Oats emerged were at 31%, compared to 29% last year and a 41% average.

US-Japan Trade Talks Conclude But Early Conclusion In Doubt

Japan will not be able to concede on ag trade issues before the July Japanese elections, Japanese Prime Minister Shinzo Abe told President Donald Trump Friday, according to the Financial Times. U.S. Ambassador to Japan William Haggerty told the paper that Trump was "very clear in reminding the prime minister ... that his goal is to achieve a more reciprocal relationship with Japan." Trump urged Abe to reduce tariffs on U.S. farm goods, again signaling he could levy tariffs on the approximately 1.7 million cars that Japan sends annually to the United States as negotiating leverage. Trump said that Japan “puts very massive tariffs on our agriculture.” But he added, “We do not tariff their cars so I think that (is) something we will work out.” Abe pointed out that Japan accounts for tens of billions of dollars of investment in the U.S., along with tens of thousands of jobs created by that investment. Trump said he would like to possibly sign a deal during his planned trip to Japan in late May for the enthronement of Japan’s incoming emperor, Naruhito. The Group of 20 summit meeting is scheduled for the Japanese city of Osaka in June, while the Group of 7 meeting is set for France in August and the East Asia Summit in Thailand. Japan's chief trade negotiator Toshimitsu Motegi said that a trade deal with the U.S. could require U.S. congressional approval, a sign that Japan could be looking at seeking major concessions from the U.S. in exchange for opening their agricultural markets.

More Time for MFP Certification

May 1 was the date that farmers originally had to submit their 2018 production evidence to the Farm Service Agency in order to receive Market Facilitation Payments (MFP) under the tariff aid plan put in place by the Trump administration. But USDA Secretary Sonny Perdue this weekend announced farmers will have until May 17 to get that info to FSA offices. Weather factored into the decision to extend the deadline, as USDA noted that extended the deadline because heavy rainfall and snowfall have delayed harvests in many parts of the country, preventing producers from certifying acres. To date, more than $8.3 billion has been paid to nearly 600,000 applicants. MFP provides payments to producers of corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries and shelled almonds. However, he reiterated what he has said before on this topic – the MFP/trade aid effort was only for 2018 crops and will not be resurrected for 2019 production.

Washington Insider: Negative Effects of Tariffs Widespread

To nobody’s surprise, agricultural and manufacturing firms have been among those hardest hit by the new tariffs levied in the year-long trade war, according to a new survey of business economists, The Hill says this week. The National Association for Business Economics reported that about one year after President Trump’s steel and aluminum tariffs took effect in March 2018 businesses felt impacts that varied greatly depending on the type of firm. Three-quarters of respondents in the goods-producing sector including agriculture, mining, construction and manufacturing reported that recent “tariffs have had a negative impact on their firms.” That compares to 40% of respondents in the transportation, utilities, information and communications sector who said the tariffs had a negative impact; 11% of respondents in the finance, insurance and real-estate sector; and 25% of respondents in the services sector. Overall, some 28% of respondents reported that recent tariffs have had a negative impact on their businesses, while 1% said they had a positive impact. A plurality of respondents, 43%, said they had no impact on their firms while another 13% said that the tariffs have been "neutral" for them. A little over one in five respondents said that tariffs have boosted costs for their companies in the past year with 13% reporting a negative impact on sales. In the goods-producing sector, 67% reported higher costs, 50% reported higher selling prices and 42% reported a negative impact on sales. Fifty-four percent of respondents in the goods-producing sector reported sourcing changes or supply chain shifts, 31% reported delayed investments and 23% reported delayed inventory because of actual or potential trade-policy changes. Among all respondents, two-thirds reported no changes to hiring and investment as a result of actual or potential trade activity. The survey results come as Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer travel to China to begin trade talks today. The Chinese government will send a delegation to Washington for more discussions about trade starting on May 8, the White House said. The U.S. and China both put tariffs on each other's products last year, but President Trump agreed in December not to raise tariffs further while the countries work to reach a deal. The administration has made trade one of its top economic issues. The president touted the economy on Friday, after the Commerce Department reported economic growth in the first quarter of this year of 3.2%. NABE also asked its members about the Federal Reserve’s pause in raising interest rates. President Trump has forcefully pushed back against the increases, arguing they are stifling economic growth. Half of respondents said they expect the rate increase pause to be favorable for business conditions at their firms, while 7% said they expect it to be unfavorable and 39% said it will have no change. While analyses show that U.S. tariffs on Chinese goods are chipping away at the goods-trade deficit with China, The Hill noted “other questions to answer when it comes to whether the tariffs are having their desired effect. For example, Axios questioned whether the tariffs are “helping American businesses,” and that observers should remember that U.S. “companies that import pay the tariffs.” When the full slate of tariffs went into effect in October, tariff collections topped $5 billion, the highest amount ever recorded. The amount of tariffs paid by these American companies has doubled since May, including an increase of more than 30% from August to October. Companies as varied as truck manufacturer Cummins, equipment maker Caterpillar, chipmaker Nvidia and washing machine manufacturer Whirlpool have all separately issued lower 2019 guidance citing the tariffs as a direct cause. An analysis of 7,000 individual products subject to new tariffs shows that there has been a measurable slowdown in purchases from both the U.S. and China. However, both Chinese and American firms are largely finding substitutes or eating the price increases instead of passing them on to consumers, Axios said. While economic metrics for China have fallen during the tariff war, along with the country's stock market, the pullback has been largely in line with expectations for the country's move from an export- to service-driven economy. Who is benefiting? India, Brazil, Cambodia and other countries who can offer substitute products and locations. India's exports to China from June-November 2018 increased by 32% and rose 12% to the U.S. Brazil, the world's second largest soybean producer, more than doubled its shipments to China, the largest soybean importer in October, while China imported just 66,955 metric tons of American soybeans that month, compared to 1.33 million metric tons a year earlier. While it is hard to ignore the extremely uneven business impacts from the trade wars for “frontline” and other subsectors of the economy, the Trump administration’s political base seems to be largely holding fast even as political fights intensify. These budget and economic policy battles should be watched closely as they become increasingly controversial and last even longer over the coming months, Washington Insider believes.

USDA Extends Market Facilitation Program Deadline

The Department of Agriculture Monday extended the deadline to May 17 from May 1 for producers to certify 2018 crop production for payments through the Market Facilitation Program. The trade relief program payments will be issued only if eligible producers certify acres before the updated May 17 deadline. Farm Service Agency Administrator Richard Fordyce says the deadline was moved because rainfall and snowfall have delayed harvests in many parts of the country, preventing producers from certifying acres. The program helps producers who have been significantly affected by foreign tariffs, resulting in the loss of traditional exports, according to USDA. MFP provides payments to producers of corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries and shelled almonds. To date, more than $8.3 billion has been paid to nearly 600,000 applicants. Producers can certify production by contacting their local FSA office or through farmers.gov.

Trump Promises Ag Focus in Japan Trade Talks

President Donald Trump promises agriculture will be a focal point in trade talks with Japan. Farmers are hoping a deal with Japan will make up for lost market access after the U.S. withdrew from the Trans-Pacific Partnership. Japan and TPP-member countries have signed a new agreement now in place, giving other nations reduced tariffs and improved access to Japan, resulting in a decline of U.S. products flowing to Japan. Before meeting with Japanese Prime Minister Shinzo Abe (sheen-zoh ah-bay) last week, Trump stated the two would be “discussing very strongly agriculture,” according to Politico. Japan will be seeking market access in return, which could include growing markets for its specialty agricultural products. The U.S. and Japan earlier this month agreed to accelerated trade talks in hopes of reaching a speedy deal by focusing on agriculture automobile trade. The benefits seen in a new trade deal with Japan are likely to be similar to those agriculture welcomed during the TPP negotiating process.

Next Two Rounds of China Trade Talks Critical

Treasury Secretary Steven Mnuchin hopes the next couple rounds of trade talks with China will bring a deal or a decision to “move on.” He told Fox Business there is a “strong desire” to wrap up the talks, or move on. The negotiations have entered the final stages, according to Mnuchin. The U.S. and China meet again this week in Beijing. Officials from China are scheduled to then revisit Washington to continue the negotiations next week. Meanwhile, the South China Morning Post reports that Chinese President Xi Jinping (Shee Jihn’-ping) may visit the White House in June, in what would be an expected meeting to sign an agreement. Mnuchin believes both sides want to reach a deal. Agriculture groups are seeking an agreement that removes tariffs on U.S. products implemented as part of the tit-for-tat trade war between the U.S. and China. However, Trump has previously stated that U.S. tariffs, those China retaliated against U.S. ag products over, may remain following an agreement.

RFA “Strongly Supports” EPA Proposal to Allow Year-Round E15

In comments submitted to the Environmental Protection Agency, the Renewable Fuels Association Monday said it “strongly supports” the year-round E15 proposal. The proposal would extend the Reid Vapor Pressure waiver for fuels blended with 15 percent ethanol year-round. The waiver currently applies to E10 only during the summer months. According to RFA, the EPA proposal would allow year-round sales of E15 in conventional gasoline markets for the first time, opening the marketplace more broadly to a fuel that provides consumers higher octane, lower cost, and reduced tailpipe emissions. RFA President and CEO Geoff Cooper says, “President Trump was correct when he called the summertime prohibition on E15 unnecessary and ridiculous.” However, just 32 days remain before the start of the summer driving season. Cooper says to honor the President’s commitment, EPA must act quickly to complete the rule. RFA’s comments also discouraged EPA from finalizing any of the four proposed Renewable Identification Number market reforms. RFA is concerned that changes may be counterproductive, undermine the efficient operation of the RIN market mechanism.

Representative Crawford Eyeing Top GOP Spot on House Ag Committee

Representative Rick Crawford of Arkansas is seeking the top Republican seat on the House Agriculture Committee after the 2020 election. Crawford told the Arkansas Farm Bureau last week that if the Republicans win control of the House, he will run for chair of the committee. House Republican rules limit members from serving in leadership positions on a committee for more than six years, preventing current ranking member Mike Conaway from serving as the top Republican beyond the current Congress. Crawford said he believed his biggest competition for the role would come from Representatives Austin Scott of Georgia and Glenn “G.T.” Thompson of Pennsylvania, according to the Arkansas Democratic Gazette. If Republicans regain majority control of the House after the 2020 elections, and Crawford is reelected, he would be running for the Chairmanship of the committee. Democrat Collin Peterson of Minnesota currently chairs the committee. Reelection and winning the top committee seat would put Crawford in the driver’s seat leading up to the next farm bill.

Ag Champion Richard Lugar Passes

A champion for agriculture, former Senator Richard Lugar of Indiana passed away Sunday. Farmers for Free Trade Co-Chair Max Baucus, a former Senator from Montana, says Luger “leaves behind an unmatched legacy of bipartisan achievement” on agriculture and foreign policy. Luger, a Republican, served as U.S. Senator representing Indiana from 1977 to 2013. He twice served as chairman of the Senate Agriculture Committee. Upon leaving office, Lugar created The Lugar Center which focuses on global food security, and other international issues. Former President Barack Obama called Lugar a problem solver, calling him “an example a public servant can make” by focusing on common ground. Vice President Mike Pence of Indiana called Luger a friend, saying his “contributions to the life of our nation are countless.” Luger, 87, was surrounded by family during his passing following a short illness in a hospital.

Montana Weekly Ag Summary

AGRICULTURAL SUMMARY: Scattered storms and windy conditions were observed across Montana during the past week, according to the Mountain Regional Field Office of the National Agricultural Statistics Service, USDA. Topsoil moisture conditions for the state were 84 percent adequate to surplus, compared to 92 percent in the previous week and 84 percent in the previous year.

Subsoil moisture conditions were 85 percent adequate to surplus which is above last year’s 70 percent. Reporters in Phillips County noted that wind has dried out the soil profile and cool temperatures have limited grass growth. Barley planted is at 23 percent complete, above last year’s progress of 17 percent. Durum wheat planted was reported at 13 percent, which is ahead of last year’s 1 percent, but slightly behind the 5-year average of 16 percent.

Cattle receiving supplemental feed was reported as 68 percent this week, compared to 70 percent in the same week last year. Grazing accessibility increased with 83 percent of pastures open, compared to 74 percent in the previous week. Calving progress was reported at 83 percent complete compared to 76 percent in the previous week, and 86 percent at this time last year.

Judith Basin and Fergus County’s reported a snowstorm hit hard this past weekend, which could halt fieldwork and livestock being moved to pasture in the area.

Winter wheat was reported with 92 percent of the crop breaking dormancy. Winter wheat conditions were rated as 78 percent good to excellent compared to 58 percent this time last year.

China Won't Challenge WTO Ruling on Domestic Producer Supports

While China expressed disappointment at the decision by the WTO that their supports to domestic wheat and rice producers did not meet their WTO commitments. The WTO ruling "once again highlights the unfair treatment suffered by developing members with regard to the WTO rules on agricultural subsidies," the Chinese stated. But, in a surprising turn, China announced it would not file an appeal in the case, a Geneva trade official said. China's decision paves the way for the decision to be adopted, which would then require China to implement changes in a "reasonable" period of time or compensate the U.S. for continued non-compliance.

EPA Rejects Comment Period Extension on E15 Proposal

EPA received two requests to extend the comment period beyond April 29 on its proposed rule to allow year-round sales of E15 rule and to make reforms to the Renewable Identification Number (RIN) market regulations – one from the National Wildlife Federation and one from the American Petroleum Institute. But EPA has rejected the requests, saying the agency "continues to believe that the current 39-day comment period is appropriate and therefore is denying the request for an extension of the comment period." EPA said in denying the requests that the "regulatory modifications detailed in this proposal are necessary to finalize by the start of the summer driving season on June 1 and extending the comment period would hinder the Agency's ability to make a decision in a timely manner."

Washington Insider: Storm Aid Battle Intensifies

The head of the Federal Emergency Management Agency sided with Republicans in a bitter congressional dispute over the amount of government assistance that should be made available for rebuilding Puerto Rico. FEMA’s head said “it wouldn’t be good for the island if Washington paid the full cost for recovery efforts after Hurricane Maria.” Pete Gaynor, FEMA’s acting administrator, said Friday that “repairing the damage from Hurricanes Irma and Maria in 2017 will be faster and more efficient if Puerto Rico continues to shoulder some of the cost. That gives the island an incentive to ensure the work is done properly.” “If you don’t have skin in the game, then it’s not in anyone’s best interest,” Gaynor told the press. As long as the island maintains responsibility for part of the price, he said, “then everyone’s a winner. And it’s in their interest to do it as quickly as possible.” Congress has been at odds for some time now over a major disaster relief supplemental spending bill to fund a wide range of flooding, wildfire and hurricane recovery. The main dispute concerns how aid to Puerto Rico should be handled. President Trump has accused Puerto Rico of squandering past aid and he told Republicans he opposes more money for the island. Bloomberg is reporting that the dispute is becoming increasingly bitter. The House in January passed a bill that would increase the federal government’s share of Puerto Rico’s disaster funding to 100 percent from 90 percent for most types of projects, while also providing a $600 million funding boost to its nutrition assistance program. That bill stalled in the Senate. Republicans and Democrats have also sparred over the actual cost of increasing the federal government’s share of Puerto Rico disaster aid. Democrats say that the 100 percent match would cost about $400 million based on current allocations of recovery money. Republicans have focused on long-range estimates that the provision would end up costing $5 billion. The House plans to vote the week of May 6 on a $17 billion version of its bill that also contains more funds for recent Midwest floods. The House is expected to pass the measure but there is no sign the standoff between Democrats and Republicans in the Senate on the bill will end anytime soon. "Hurricane Maria was one of the deadliest and most destructive storms in American history, and the severe effects of the hurricane are still lingering,” said Evan Hollander, the Democratic spokesman for the House Appropriations Committee. “Attacking struggling Puerto Ricans with baseless claims that they aren’t doing enough to help their own recovery is insulting.” Gaynor defended his agency’s efforts in Puerto Rico, saying that FEMA has almost 3,000 employees working on recovery from Irma and Maria. He added that since the beginning of the year, FEMA has obligated an average of $50 million a week to the island. Still, he said he understood the island’s concerns about the pace of recovery. “It’s probably fair that it’s not moving fast enough,” Gaynor said. “When you’re a disaster survivor, or whether you’re the governor of any state, you want recovery to happen as fast as possible. I fully understand that.” Gaynor said the extent of the devastation on the island makes recovery more difficult. “Part of our challenge is the scale of destruction and damage in Puerto Rico,” Gaynor said. “We’re trying to rebuild infrastructure that took 50 years to build.” These funding questions are sure to come up when Gaynor testifies before the House Appropriations Committee on tomorrow. “We are fully invested in Puerto Rico,” Gaynor said. “We don’t want to fail at recovering Puerto Rico, because it’s not good for Puerto Rico residents or the government. And it’s definitely not good for FEMA or the federal government.” So, the current proposal is big and complex, and contains much needed aid for large numbers of producers and others. Assistance to ag, especially in the Midwest, is by far the largest component. Even so, it is not clear what the eventual outcome of the current standoff will be. This certainly is a battle producers should watch closely as it proceeds, Washington Insider believes.

Peterson Leading Trade Mission to Central/South America

House Agriculture Committee Chair Collin Peterson of Minnesota is leading a trade mission to Central and South America. The Hagstrom Report says the delegation is scheduled to make stops in Brazil, Argentina, and Honduras. They’ll meet with agriculture leaders from the public and private sectors of each country. Patrick Delaney, the committee’s communications coordinator, says discussions will include the effects of the changes in U.S. trade policy. “This includes what openings the administration’s trade war has created for our competition in those countries,” Delaney says, “as well as how Chinese investment has increased the competitive capacity of South American producers.” Other discussions will cover ag trade issues that are important to each country. In Honduras, the delegation members will meet with American service members stationed in that country. Peterson says Trump Administration officials had encouraged him to include that particular stop in Honduras. Delaney didn’t provide the names of other trade delegation members, preferring to leave it up to each member to discuss the trip when they return to the U.S.

USGC Focusing on Saudi Arabia Opportunities

U.S. Grains Council staff members recently made a long trip to Saudi Arabia with the goal of promoting sorghum and other products to buyers and other end-users in the country. As the Saudi government continues to revise its subsidy rates, that could lead to more opportunities for U.S. sorghum or corn imports used for animal feed. Saudi Arabia purchased 11 million bushels of U.S. sorghum last year, as well as 16.5 million gallons of ethanol. Roughly 80 percent of the country’s poultry market is controlled by 15 farms and 85 percent of the Saudi dairy market is controlled by nine farms. An increasing number of animal feed rations in both industries are coming from imports. The USDA’s Ag Trade Promotion Program is also expanding engagement for potential customers by promoting sorghum and DDGs in Saudi Arabia. Large Saudi importers and end-users will be traveling to a buyer’s conference in Europe this summer. Looking for feed supplies doesn’t end there as a team of Saudi buyers and end-users will also likely travel to the United States this fall.

Agriculture Consensus on Labor Fixes

Ag industry lobbyists tell Politico that the industry appears to have come together to reach consensus on a potential fix to the shortage in farm labor. The lobbyists tell Politico that the potential fix would give workers a path to legalization for farm laborers currently in the country. It would also expand the H-2A foreign guest worker program to help make it easier for farmers to find the help they need to run their operations. Multiple lobbyists say those are the two elements that would help the potential fix win support from all segments of agriculture. Different segments of agriculture have been sharply divided in recent years on how to fix the labor shortage. Ag groups that lobby in Congress say organizations ranging from fruits and vegetables to dairy are more together on the issue than they’ve ever been in the past. Lawmakers, who return this week from Easter break, are in the beginning stages of negotiating legislation. Discussions in the House will likely pick up steam soon. “We’re hopeful for some sort of grand bargain and that our labor needs are addressed,” says Nick Giordano, VP of Government Affairs for the NPPC. “However, we know the odds are long.”

NE Right to Farm Legislation Update Set for Final Vote

Nebraska state senators are working on a revised bill that would expand agricultural producers’ protections under Nebraska’s 1982 Right to Farm Act. They’ve sent the legislation on to the final stage of the process. The North Platte Telegraph says Legislative Bill 227 deals with nuisance lawsuits against farms. Senators set a two-year time limit to file nuisance suit against a change in the way a farm or public grain warehouse operates. The bill’s author wants to give farmers and livestock producers more protection when they expand, in case their neighbors consider the expansion an intrusion into their quality of life. Current state law says no suits can be filed over any changes in an agricultural operation if the farm or warehouse already existed and wasn’t considered a nuisance before the change. The bill passed by a vote of 31-7 in the first round before passing in the second round 38-0 after an amendment was inserted that limits nuisance lawsuits to within two years of a supposed “offensive change” to an operation. The amendment says “no lawsuit shall be maintained” if filed after two years. The only way it would be allowed is if the suit is brought to enforce a previous court order telling the producer to correct a previous nuisance.

More States Working on Hemp Production

A Florida bill unanimously passed by its Senate means hemp could be joining oranges, strawberries, and tomatoes as top Florida crops. An Associated Press article says the bill passed last week with the goal of helping an industry that’s been hard to get off the ground. Hemp can be used to make everything from ropes to building materials to feed. The bill before the Florida legislature would create a state program to administer and oversee hemp growing. Republican Senator Rob Bradley says agriculture has been hit by setbacks like citrus diseases to hurricanes over the last 20 years and hemp could be a valuable addition to farmers’ plans. Further west, Louisiana farmers could be expanding into help growing if lawmakers agree to a proposal going before the full House. The measure would legalize growing and processing of industrial hemp in Louisiana and do so in line with what’s allowed under the federal farm bill. The bill’s author says hemp production would help Louisiana’s struggling farmers and create new jobs. “The idea is to grow and take advantage of a crop we haven’t been growing since 1938,” says Louisiana Ag Commissioner Mike Strain.

Farm Bureau Wants Congress to Quickly Pass Rural Electric Co-op Bill

The American Farm Bureau is asking Congress to quickly pass the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. The recently-introduced legislation will ensure that electric cooperatives won’t put their tax-exempt status in jeopardy when they accept government grants for things like expanding broadband or restoring power after storms and other disasters. Most electric cooperatives are tax-exempt. In order to maintain that status, they must get at least 85 percent of their income from members. However, the Tax Cuts and Jobs Act re-characterized those grants as income. The unintended consequence is that the Act makes it much harder for cooperatives to meet the tax-exempt definition. “Farm Bureau works hand-in-hand with rural electric cooperatives on the shared goal of ensuring that rural America and the farmers and ranchers that live there have access to reliable power and high-speed internet,” says AFBF President Zippy Duvall. “We are asking lawmakers to act quickly on this important measure to allow rural electric cooperatives to continue their critical work without risking their tax-exempt status.”

U of I Launches Fundraising And Construction Project For Meat Science Center

Representatives from the University of Idaho last week launched a fundraising and construction project to build an $8 million meat science and innovation center at the school’s Moscow, Idaho, campus. Agri Beef Co. will provide $2 million to help fund the project, which will replace the existing meat science facility on campus to create a modern research and retail sales center, the Boise, Idaho-based school said in a news release. The new Agri Beef Meat Science and Innovation Center Honoring Ron Richard will spotlight the legacy of Idaho meat science teacher Ron Richard, who died in October 2018. His students learned the science and practical aspects of supplying nutritious, safe and innovative meat products to businesses and the public through Richard’s classes, the release noted. The center also will be the new home of Vandal Brand Meats, a retail shop that each year sells more than $325,000 worth of sausages, steaks, hot dogs and hamburger produced by University of Idaho students. Other local companies and individuals in the livestock industry have shown “strong interest” in supporting the project financially, the release added, including a $200,000 commitment from Northwest Farm Credit Services. No timetable for the project’s completion was announced.

Washington Insider: Europe and Administration Tariffs

Amid press reports that the U.S.-China talks are close to bearing fruit, the New York Times is reporting that European studies are suggesting that tariffs on Europeans are not having as much impact as formerly expected. For example, President Trump’s trade war was supposed to make Europeans feel so much pain they would beg for mercy at the negotiating table, NYT says. “But it’s not working very well, according to a new study by the European Central Bank.” Almost a year after the White House imposed tariffs on European steel and aluminum, the actual damage to European exports has been surprisingly mild. Some industries, notably manufacturers of heavy equipment, may have even profited “because the White House imposed a broader array of tariffs on Chinese products, making competing European goods less expensive by comparison and allowing them to gain market share,” the Times says. The tariffs “pose only a modest adverse risk to the global and euro area outlooks,” the economists at the European Central Bank reported. The new study, which comes as Europe and the United States prepare to begin high-level trade talks, reinforces other research showing that the tariffs on European goods have, by themselves, not amounted to very much. “They have probably hurt the United States economy more than the intended targets,” the European report says. One reason is that much of the steel that Europeans sell to the United States is especially formulated for specific uses like aircraft parts or oil drilling equipment. American companies sometimes cannot find domestic suppliers able to provide the same products, which often contain patented combinations of minerals or other metals. So, they simply wind up paying the tariffs of 10% on aluminum and 25% on steel and passing the extra cost on to American consumers. “There was not necessarily a lot of production capacity in the U.S. to pick up the slack,” said Oliver Rakau, chief German economist at Oxford Economics, who was not involved in the central bank study. At the same time, the trade war is having a significant psychological impact, the Times says. The administration has rattled European confidence with the tariffs and the U.S. threats to expand them to include cars. Fearful of what may come next, businesspeople are delaying plans to expand their factories or hire new workers. “Uncertainty related to protectionism is weighing on economic sentiment,” the central bank study said, adding that was only one of the reasons for Europe’s tepid growth. Many economists have said that putting tariffs on cars would raise the stakes significantly and cause a lot more damage. As part of the new study, which appears in the European Central Bank’s monthly bulletin, Gunnella and Quaglietti also calculated what would happen if the United States imposed 10 % tariffs on imports from all countries and if all of the countries hit by the tariffs retaliated in kind. The United States economy would suffer the most damage in such a trade war because American products would become more expensive abroad, the central bank economists estimated. China would come out ahead. In Europe, the damage to business confidence in the hypothetical trade war would largely be canceled out by increases in exports to countries other than the United States. European companies would be able to take market share from their American rivals in China. There are already signs that European manufacturers of factory machinery, construction vehicles and other heavy equipment are exploiting the administration’s trade war with China. Industrial machinery is Germany’s second-biggest category of exports after cars and an important sector in countries like the Netherlands and Italy. In recent years, Chinese companies have become more skilled at producing sophisticated machinery and challenging the dominance of European rivals. But White House tariffs on Chinese products have given the European companies at least a temporary price advantage. Still, few business managers are feeling good about the turmoil. “Further trade conflicts would not be in our interest,” Trumpf, a German company known for machines that use lasers to cut steel, said. The United States and China are Trump’s two biggest foreign markets and it has factories in both countries, the company noted. There has long been U.S. discussion and debate about the administration’s basic trade objectives, especially its focus on trade balances limited to goods—and its willingness to intervene in markets with tariffs and other tools that can significantly roil long established markets including those for ag products. The China debate widened the fight to include pressure for structural changes that included the role of government — and which had wider political support in the United States, but which are extremely difficult to enforce. The debate with Europe is still in early stages while the U.S.-China fight appears to be closer to resolution, but the politics involved in the deals being considered — including the new NAFTA — are often murky and complicated, especially as they involve the Congress and its reviews. These are debates producers should watch closely as they intensify, Washington Insider believes.

Corps of Engineers Release Three Week Missouri River Forecast

The U.S. Army Corps of Engineers updated its near-term forecast for the Missouri River this week as the basin prepares for mountain snowpack to melt and collect in the system. The three-week forecast calls for increased water output from the Missouri River water control facilities along the river. Currently, system reservoirs are below their exclusive flood control pool elevations. However, as the mountain snowpack melts, the pool elevations will increase significantly. Storing water in the exclusive flood control pools at reservoirs in the middle of the system limits flexibility for reducing flood risk from upstream or downstream rain events. Thus, officials say they will maintain release levels higher than inflows. Gavins Point releases are forecast to remain steady at 55,000 cubic feet per second to continue evacuating runoff from the spring plains snowmelt. John Remus, chief of the Corps’ Missouri River Basin Water Management Division, says fluctuations to river stages downstream from Gavins Point are possible due to rain events occurring downstream from Gavins Point. Some areas downstream are still at flood stage and have been since last month's bomb cyclone weather event.

USGC Updates Protocols to Guard against African Swine Fever

The U.S. Grains Council has strengthened biosecurity safeguards for overseas travelers and USGC-led trade teams in recognition of the severity and spread of African swine fever. As part of the updated protocol, no USGC-led or organized teams will visit swine farms or operations in the United States in 2019, and teams from confirmed affected countries will not visit any type of U.S. livestock operation. Travelers will still be able to meet with livestock companies to discuss livestock production and feeding practices. Tom Sleight, USGC president and chief executive officer, says USGC is “taking precautions to limit exposure,” as African swine fever is not in the United States. USGC says the updated protocols limit risk while still enabling the Council to work to build international markets for U.S. feed grains and co-products. The National Pork Board and the National Pork Producers Council have fully detailed biosecurity guidelines for pork industry-related international travel, which USGC used in it’s updated protocols.

Farmer’s Share of the Food Dollar Falls to All-Time Low

The farmers share of the food dollar has reached an all-time low. For every dollar American consumers spend on food, U.S. farmers and ranchers earn just 14.6 cents, according to a report recently released by the U.S. Department of Agriculture's Economic Research Service. This value marks a 17 percent decline since 2011 and the smallest portion of the American food dollar farmers have received since the USDA began reporting the data in 1993. The remaining 85.4 cents cover off-farm costs, including processing, wholesaling, distribution, marketing, and retailing. National Farmers Union President Roger Johnson says the data, among other economic conditions, shows "we are in the midst of an agricultural financial crisis." Johnson points out that conditions for farmers have been eroding since 2011, and "many have already made the heartbreaking decision to close up shop." In the past five years, the United States lost upwards of 70,000 farm operations. Johnson is hopeful the report "will open policymakers' eyes" to the financial challenges in agriculture.

Argentina Seeking Expanded Trade with China

Argentina wants to increase agricultural trade with China ahead of a bumper crop of soybeans. China, the world’s largest buyer of soybeans, purchased $3.48 billion worth of Argentine exports, with more than 86 percent of which were from the agricultural sector. Argentina’s agriculture secretary said in a statement, “We believe Argentina still has a big chance to advance agro-industrial trade and increase its role as a reliable supplier of food to China,” while leading a trade delegation in China. Farmers in Argentina are expected to harvest 55.9 million metric tons of soybeans this season, or 48 percent more than the previous year, according to Reuters. The move comes as the U.S. continues to negotiate a trade agreement with China following a tit-for-tat trade war that shut off U.S. soybean exports to China. Complicating the market further, China uses the soybeans for animal feed, as it is the largest pork producing nation. However, African swine fever is projected to reduce pork production in China by more than 20 percent this year.

Congress to Return with Push for USMCA

Lawmakers return to Washington next week with a renewed industry push to approve the U.S.-Mexico-Canada Agreement. Following the International Trade Commission Report, few steps remain to reach implementation. Vice President Mike Pence touted the deal during a stop in Michigan this week, and a road tour from Farmers for Free Trade is crossing the country building support for passage of the agreement. The ITC Report found the agreement will increase U.S. agricultural exports by $2.2 billion, according to the American Farm Bureau Federation. The Trump administration must submit the final text of the agreement to Congress 30 days before it is formally introduced. The House Ways and Means Committee and Senate Finance Committee may then take up to 45 days before introducing the bill to the full bodies of Congress. The bill will be considered by the House first, followed by the Senate. Because of Trade Promotion Authority, the deal will be considered with no amendments on an up or down vote.

U.S.-Japan Accelerated Trade Talks Continue

The U.S. and Japan are meeting again to wrap up the week in the second round of trade talks. Japan’s Economy Minister is meeting with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. Meanwhile, Japan’s Prime Minister Shinzo Abe (sheen-zoh ah-bay) plans to meet President Donald Trump today (Friday) in Washington. The negotiations continue to focus on reaching a quick agreement on agriculture and automobiles. The U.S. wants better access to Japan’s agricultural products market, as trade agreements between Japan and other nations have made products from other countries more lucrative to Japanese buyers. Nearly 100 farm groups sent a letter to Lighthizer this week outlining the market loss U.S. producers are facing from competing trade agreements, including the new Trans-Pacific Partnership, the agreement Trump removed the U.S. from upon taking office. Just last week, the U.S. and Japan agreed to accelerate trade talks to reach a fast agreement.

Lawsuit Alleges Meatpacker Conspiracy - Class Action Points to Cattle Price Fixing Through Slashing Slaughter Volumes

OMAHA (DTN) -- The nation's largest meatpacking companies conspired to unlawfully depress fed-cattle prices paid to ranchers starting in 2015, a national cattle group alleges in a new class-action lawsuit filed in federal court in Illinois on Tuesday. The Ranchers-Cattlemen Action Legal Fund United Stockgrowers of America (R-CALF USA) filed the lawsuit on behalf of four cattle-feeding ranchers in Iowa, Nebraska, Kansas and Wyoming. The lawsuit alleges the nation's largest meatpacking companies engaged in fed-cattle price fixing, unjustly enriched their businesses, manipulated the prices of fed cattle and as a result the Chicago Mercantile Exchange live cattle futures and options, and committed a number of violations of the Commodity Exchange Act, among other allegations. Named in the lawsuit are Tyson Foods, Inc., Tyson Fresh Meats, Inc., JBS S.A., JBS USA Food Company, Swift Beef Company, JBS Packerland, Inc., Cargill, Inc., Cargill Meat Solutions Corp., Marfrig Global Foods S.A., and National Beef Packing Company, LLC. In addition, the lawsuit also names 10 unidentified cattle futures and options traders who trade on the Chicago Mercantile Exchange. Collectively, the companies process more than 80% of fed cattle in the United States. The lawsuit filed in the U.S. District Court for the District of Northern Illinois in Rockford seeks punitive damages and restitution in requesting a jury trial. In its lawsuit R-CALF USA alleges the packers conspired to "suppress the price of fed cattle that they purchased in the United States," beginning on Jan. 1, 2015, and continuing to the present. "Packing defendants' coordinated conduct, including slashing their respective slaughter volumes and curtailing their purchases of fed cattle in the cash cattle market, precipitated an unprecedented collapse in fed cattle prices in 2015," the group alleges. "Packing defendants then continued to suppress the price of fed cattle through coordinated procurement practices and periodic slaughter restraint. Packing defendants' conspiracy -- which is confirmed by witness accounts, trade records, and economic evidence -- impacted both the physical fed-cattle market and the market for live-cattle futures and options traded on the CME." The lawsuit said fed-cattle prices increased steadily between 2009 and 2014, "in response to strong beef demand and a shortage of fed cattle following the droughts of 2011 through 2013." Then after prices peaked in November 2014, the cattle industry expected fed-cattle prices to stabilize in 2015 and continue around that level for a number of years, the lawsuit said. "This widely predicted price stability did not occur," the lawsuit said. "Instead, packing defendants used their market power, price sensitivities, and the thin cash-cattle trade to their advantage and embarked upon a conspiracy to depress fed-cattle prices." The plaintiffs argue the practices are estimated to have depressed prices by an average of 7.9% since January 2015. "R-CALF USA is taking this historic action to fulfill its promise to its members to prevent the Big 4 packers from capturing the U.S. cattle market from independent U.S. cattle producers," R-CALF USA Chief Executive Officer Bill Bullard said in a statement. "We have exhausted all other remedies." COMPANIES RESPOND In a statement to DTN, Tyson denied the allegations. "We're disappointed this baseless case was filed," the company said. "As with similar lawsuits concerning chicken and pork, there's simply no merit to the allegations that Tyson colluded with competitors. This complaint is nothing more than another transparent and opportunistic attempt by attorneys to make money for themselves at the expense of consumers. Tyson operates with integrity every day. We welcome competition, which makes us a better company, enhances the quality of our products and provides more choices at greater value to our customers. "We depend on thousands of independent cattle, pig and chicken farmers and ranchers as a vital part of our supply chain. Contrary to the assertions in this lawsuit, Tyson wants its suppliers to succeed. Tyson will vigorously defend itself and its proud heritage of supporting America's farmers and ranchers." Cargill said in a statement to DTN, "For many years, Cargill has served as a trusted partner to American cattle ranchers, committed to supporting their family farms and livelihoods. We believe the claims lack merit, and we are confident in our efforts to maintain market integrity and conduct ethical business." A spokesperson for Marfrig told DTN the company would not comment, as it had not officially been notified of the lawsuit. DTN's attempts to reach other defendant companies for comment were unsuccessful. SEPARATE CLASSES The lawsuit attempts to recover losses suffered by two classes. The first includes cattle producers who sold fed cattle to any one of the companies from January 2015 to the present. The second consists of traders who transacted live-cattle futures or options contracts on the CME during the same time. The lawsuit alleges the conspiracy involved the packing companies "periodically" reducing slaughter volumes to reduce demand for fed cattle; curtailing their purchase and slaughter of cash cattle during those same periods; coordinating their procurement practices for cash cattle; importing foreign cattle at a loss so as to reduce domestic demand; and simultaneously closing and idling plants. The lawsuit said a confidential witness previously employed by one of the companies "confirmed that packing defendants expressly agreed to periodically reduce or restrain their respective slaughter volumes so as to reduce demand for fed cattle." FUTURES MARKETS ALLEGATIONS In alleging manipulation of the live-cattle futures and options markets, the lawsuit points to an action taken by Tyson in 2015. "For example, on Aug. 14, 2015, Tyson announced that it was closing its Denison, Iowa, beef plant, which resulted in price declines in the cash and futures markets," the lawsuit said. "In particular, the spot or front-month August contract fell $0.004 per pound ($160 per live cattle future) and the October 2015 contract fell $0.01 per pound ($400 per live cattle future). According to one market participant, 'some feedlots may have surrendered after seeing futures fall earlier in the session, partly on word that Tyson closed a beef plant.'" R-CALF said despite a "drastic collapse" in fed-cattle prices, the packing companies and their wholesale customers continued to benefit from record beef prices. "This disconnect allowed packing defendants to reap record per-head meat margins during the class period at the expense of fed-cattle producers," the lawsuit alleges. "The same data demonstrate that packing defendants drastically reduced their purchases of cash cattle during these periods of slaughter restraint. Packing defendants did so in an attempt to 'back-up' (that is, create a glut in) the number of slaughter-ready cash cattle and encourage producers to accept lower prices for their highly perishable product. Doing so not only dropped cash cattle prices, but also the prices paid under packing defendants' formula and forward contracts. "Once packing defendants had broken the cash-cattle trade and created a relative supply glut, packing defendants collectively ramped up their cash cattle purchases and reaped supra-competitive profits at the expense of the producers."

U.S.-China Talks Resume Next Week

The U.S. and China will resume trade talks next week. U.S. Trade Representative Robert Lighthizer will travel to China to meet with trade officials along with Treasury Secretary Steve Mnuchin. China is also expected to return to the U.S. for negotiations on May 8th. Next week’s discussions will cover intellectual property, forced technology transfer, non-tariff barriers, agriculture, services, purchases, and enforcement, according to a White House statement. Both sides appear hopeful to reach a draft agreement by the end of May. The negotiations, which stem from the tit-for-tat trade war last year, bring hope that tariffs will come to an end for U.S. agriculture. However, the ongoing African swine fever outbreak in China, which is forcing a more than 20 percent drop in China's hog production, will also reduce demand for soybeans and feed products, a top agriculture export product for the United States. If the two sides can reach a favorable agreement, the U.S. could be in a position to provide addition pork exports to China to cover the production loss.

Farm Bank Lending Rises to $108 Billion in 2018

U.S. farm banks increased agricultural lending by 5.3 percent, or $5.5 billion, to $108 billion in 2018. The American Bankers Association recently released its annual Farm Bank Performance Report. The report found that in 2018, farm banks' asset quality remained healthy and non-performing loans stayed at a pre-recession level of 0.52 percent of total loans. The report is an analysis by ABA's economic research team based on FDIC data and examines the performance of the nation's 1,700 banks that specialize in agricultural lending. ABA defines farm banks as banks whose ratio of domestic farm loans to total domestic loans is greater than or equal to the industry average. More than 94 percent of farm banks were profitable in 2018, with more than 63 percent reporting an increase in earnings. Farm banks also served as job creators, adding more than 1,500 jobs in 2018, a 1.8 percent increase, and employing more than 86,000 rural Americans. Since 2008, employment at farm banks has risen 24.4 percent.

R-CALF Files Class Action Lawsuit Against Beef Packers

The Scott+Scott law firm has filed a class action lawsuit in federal district court in Chicago on behalf of R-CALF USA and four cattle-feeding ranchers from Iowa, Nebraska, Kansas, and Wyoming. The suit alleges the nation's four largest beef packers violated U.S. antitrust laws, the Packers and Stockyards Act, and the Commodity Exchange Act by unlawfully depressing prices paid to American ranchers. The complaint was filed against Tyson Foods, Inc., JBS S.A., Cargill, Inc., and National Beef Packing Company, LLC. The suit claims the packers, which purchase and processes more than 80 percent of U.S. fed cattle, conspired to depress the price of fed cattle they purchased from American ranchers, thereby inflating their own margins and profits since January of 2015. The class action lawsuit seeks to recover losses suffered by two classes believed harmed by packers alleged conduct. The first class includes cattle producers who sold fed cattle to any one of the companies from January 2015 to the present. The second class consists of traders who transacted live cattle futures or options contracts on the Chicago Mercantile Exchange from January 2015 to the present.

New York Mayor Announces Own Green New Deal

New York Mayor Bill de Blasio announced a Green New Deal of his own this week, calling for a reduction in purchases of processed meats in New York City. The deal, according to the mayor’s office, would ensure a near 30 percent reduction in emissions by 2030. The plan was passed by the New York City Council last week. As part of the plans waste and carbon reductions, it calls for the city to end “unnecessary purchases of single-use plastic foodware, phase out the purchase of processed meat, reduce the purchase of beef by 50 percent and commit to a carbon neutral City fleet by 2040.” Brooklyn Borough President Eric Adams said of the deal he is “particularly thrilled” that the city “has taken up our mantle to reduce our overconsumption of meat through the phasing out of processed meat purchasing and the reduction of beef purchasing.” The New York Green New Deal also bans the “inefficient” steel and glass skyscrapers that adorn the city, and calls for vast changes to make current building more efficient.

Tariffs Could Skyrocket Tomato Prices in the U.S.

Threatened tariffs could hike U.S. tomato prices between 40 and 85 percent. Research commissioned by the Fresh Produce Association of America suggests that if the U.S. withdraws from the Tomato Suspension Agreement on May 7, and applies duties on Mexican tomatoes, consumer prices could rise up to 40 percent in the period from May to December. During other periods, such as winter, prices for certain varieties like vine-ripened tomatoes, tomatoes on the vine and Romas could rise more than 85 percent. At the request of tomato growers from Florida, U.S. Commerce Secretary Wilbur Ross announced the U.S. would end the current suspension agreement between the two countries. By doing so, the U.S. would resume an anti-dumping investigation that could result in steep duties on Mexican tomatoes. The Tomato Suspension Agreement is an agreement suspending the antidumping investigation on fresh tomatoes from Mexico, which stops Mexico from dumping tomato exports on the U.S. market.

Study: Red Meat Safe Shelf Life Seven Weeks

A new study suggests red meat can safely be stored for up to seven weeks. Advancements in storage and vacuum packaging may extend the shelf life of red meat, according to researchers from the British Meat Producers Association and Meat and Livestock Australia. The research indicated that raw beef doesn’t become toxic with the bacterium that causes botulism until 50 days after first developing spores. The beef needed to be chilled at 46 degrees Fahrenheit or below, noting that it takes 45 days for lamb and 25 days for pork to land in similar circumstances at the same temperature. U.K. officials initially set a shelf-life rule of ten days for fresh beef in 1992, with revised guidance issued in 2008. Meat industry publication Meatingplace reports the findings could give meat processors the ability to apply longer retail shelf lives to their products, benefitting consumers and the environment thanks to lower levels of food waste and improved sustainability.

Deadline for 2019 Hemp License Applications Fast Approaching

Application form available online Helena, Mont. –The Montana Department of Agriculture is reminding producers that the application deadline for 2019 hemp licenses is one week away. An application and the appropriate fees must be received by the Department no later than May 1, 2019. The department will be issuing hemp grower licenses in two progressive stages. A conditional license will be issued to eligible applicants so they may purchase seed. Conditionally licensed applicants are those that have paid the initial fee. Full grower license requirements include growing location(s), seed variety(s), land owner signature(s), the signed Risk Acknowledgement Statement and any additional fees. For more information visit agr.mt.gov/hemp. An industrial hemp license issued by the state provides authorization for the production of industrial hemp at a particular growing area by a particular individual or entity. Licenses expire on the last day of April following the year the license is issued. Completed applications can be sent to the Department at: Montana Department of Agriculture Hemp Program PO Box 200201 Helena, MT 59620

Business Groups Warn Trump Against Keeping Tariffs On Chinese Goods

U.S. business and farm groups are warning President Donald Trump against keeping tariffs on Chinese goods if he reaches a trade deal with Beijing. In a letter, companies called for the "full and immediate removal of all added tariffs" on Chinese goods in a deal, saying anything less would be a "loss for the American people... American businesses and farmers... were promised that tariffs were merely a means to an end, and that all this damage would be worth it," they wrote to Trump. "A deal that fails to lift tariffs would represent a broken promise to these hardworking Americans." The letter noted that, "To date, Americans have paid over $21 billion in taxes due to the imposition of new tariffs. Furthermore, every single second the tariffs remain in place, Americans are paying over $1,500 in added tariffs," The groups said the figures do not reflect the "impact of retaliatory tariffs on U.S. farmers, manufacturers and exporters." Commenting on a major topic of ongoing negotiations, the business groups wrote the administration "must avoid any enforcement mechanism that would trigger future tariffs and result in long-term economic uncertainty." They added: "We agree that enforcement must be part of a final deal. However, coming home from the bargaining table with a deal that results in perpetual tariffs would be a failure."

Risk Management Agency Changes Livestock, Dairy Insurance

Ranchers can insure more of their cattle and hogs using Livestock Risk Protection, which shields against drops in market prices, based on changes announced by USDA's Risk Management Agency (RMA) that become effective July 1. Coverage has expanded to all states, and the federal government will cover up to 35% of premiums, compared with 13% under prior rules. The updated Dairy Revenue Protection removed the 70% and 75% coverage levels and modified the minimum declared butterfat from 3.5 to 2.5 pounds. The program insures for unexpected declines in the quarterly revenue from milk sales compared with a guaranteed coverage level. As for the Livestock Gross Margin program, livestock individual capacity limitation was removed for cattle, swine, and dairy which was previously limited to $20 million per fiscal year. Plus, dairy producers will be able to utilize LGM and the new Dairy Margin Coverage program from FSA on the same production via a change contained in the 2018 Farm Bill.

Washington Insider: African Swine Fever Outbreak Threatens China’s Hog Herd

There have been reports for some time about disease problems in the Chinese swine herd. The New York Times is reporting this week that government is having significant problems dealing with the outbreak. It says that African swine fever (ASF), which does not attack humans, has swept across the country, the world’s largest pork producer. Perhaps the worst news, the Times says, is that “the government knows about only some of the cases.” By China’s official estimates, the present outbreak has already been catastrophic. More than a million animals have been culled, according to the Chinese government. As a result, “a billion-plus pork-loving people are facing much tighter supplies. The need to fill the gap is influencing meat markets worldwide,” the Times says. Furthermore, the Times thinks the “reality of the epidemic may be grimmer still.” Several hog producers reported that they had not declared potential infections among their animals to the local authorities. As a result, many farmers and livestock analysts say they assume that the highly contagious disease has infected more animals in more places than Chinese officials have acknowledged. The article cites a number of producers who said they “did not tell the authorities” when the disease struck, and that some have severe “doubts that the government can afford to keep its promise to compensate farmers who have been affected by the outbreak.” The need to “get a grip” on African swine fever could not be more urgent for China, the world’s largest producer and consumer of pork, NYT says. Yet the official response seems to fit a pattern from previous crises involving public health and safety in the country, including an AIDS epidemic in the 1990s, an outbreak of severe acute respiratory syndrome in the early 2000s and a widespread tainting of baby formula in 2008. In the current crisis, the distrust is being felt not just by farmers and industry specialists, but by consumers as well. Some Chinese shoppers, skeptical of assurances that the disease does not harm human health, are starting to shun pork, the Times report noted. The fever, which is extremely difficult to treat, has spread to every Chinese province and region, and has also jumped the border into Cambodia, Mongolia and Vietnam. Analysts at the Dutch bank Rabobank, which lends heavily to the global agriculture industry, have predicted that China will produce 150 million to 200 million fewer hogs this year because of deaths from infection or culling. That would be a hefty chunk of the 700 million head of swine slaughtered in China in 2018, the article said. Also, the Chinese economy, already slowing, is starting to feel the effects. Higher pork prices helped push inflation to a five-month high in March. The nation’s stock of live pigs has fallen by a fifth from a year ago. The government, anticipating shortfalls, has bought frozen pork to build up its strategic reserve. Hog futures in the United States have rallied as traders bet that China will buy more American-produced meat. China has introduced new hygiene requirements, imposed quarantines and restricted the transporting of swine. But such measures will be of limited use if the authorities have an incomplete picture of the problem — or if they have more a complete picture that they do not make public. “There’s no way to control something that you don’t acknowledge exists,” said Christine McCracken, a Rabobank analyst. In places where infections were not reported or acknowledged, farmers and pork producers might not be taking adequate safety precautions, she said. They may even be selling and processing infected animals. African swine fever can linger for weeks or months in uncooked and frozen pork. “It only takes one infected piece of meat entering the chain to muck it all up again,” McCracken said. Financial pressures may be shaping local officials’ response to the epidemic, NYT concluded. China is promising around $180 for every pig a farmer culls from an infected herd. This cost is split between the national and local administrations. But the central government pays a bigger share in poorer provinces, which might give wealthier provinces like Shandong an incentive to avoid reporting suspected outbreaks to higher authorities. The national government ultimately decides which outbreaks to confirm. The ASF outbreak in China is a disaster that will have global impacts and could lead to infections in other hog producing countries. USDA says it has three steps it uses to avoid similar outbreaks, including continuing qualitative assessments of the likelihood of an outbreak, as well as a “non-animal origin feed ingredient risk evaluation framework,” and detailed reviews of “non-animal origin feed ingredients and the transmission of viral pathogens of swine.” In addition, USDA reports that it is working closely with other federal and state agencies, the swine industry, and producers to take the necessary actions to protect our nation’s hogs and pigs and to keep this disease away from U.S. herds. Clearly, this disease is a continuing global threat and should be monitored closely at all times, Washington Insider believes.

Ag Seeks Swift Agreement in U.S.-Japan Trade Talks

A large coalition of agriculture groups is urging for swift action in the negotiation and implementation of a U.S.-Japan trade agreement. The National Association of State Departments of Agriculture, along with many agriculture organizations, signed a letter to U.S. Trade Representative Robert Lighthizer this week. The groups say the U.S. food and agriculture industry is increasingly disadvantaged by competing regional and bilateral agreements with Japan that have already been implemented, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the European Union-Japan Economic Partnership Agreement. As a result, U.S. exporters of wheat, beef, pork, dairy, wine, potatoes, fruits and vegetables, and other products are facing collapse of their Japanese market share as these sales are handed over to their competitors. Agriculture is seeking an agreement with Japan that includes market access provisions that at least equal the terms of the other agreements. Further, the groups say the agreement must include an accelerated phase-in of tariff cuts to ensure the U.S. is not facing a disadvantage compared to other countries, and address non-tariff barriers.

Study Claims Majority of Consumers Approve Non-Dairy Items Labeled as Diary

A study commissioned by the Plant-Based Foods Association says 76 percent of survey respondents are in favor of allowing dairy terms on plant-based items, while those self-described as consumers were 97 percent in favor. The Food and Drug Administration accepted comments on the issue of labeling non-dairy imitators as dairy items recently. National Milk Producers Federation spokesperson Chris Galen says, however, that the survey shows "that the vegan community was confused about the question being asked by FDA." Galen says the purpose of the FDA comment period was to assess whether all consumers, "not just those sending back postcards," understand the nutritional inferiority of the plant-based alternatives, per comments made by former FDA commissioner Scott Gotlieb. Galen called the comment period “a qualitative review of evidence that there is a lack of understanding that not all products labeled as ‘milk’ have the same nutrition.” The National Milk Producers Federation is confident the data it and other organizations provided will help provide the rationale for the FDA to enforce its standards against labeling plant-based alternatives as dairy products.

USDA Seeks Another Experimental ASF Vaccine License, Years from Implementation

The Department of Agriculture intends to grant an experimental license for an African swine fever vaccine. The intent was published in the Federal Register this week that USDA’s Agricultural Research Service intends to grant the license to a company in Bulgaria that manufactures and markets human and animal health products. Currently, there is no commercially available vaccine to protect swine from the deadline virus. Despite the work by the company in Bulgaria and others, National Pork Producers Council Veterinarian Liz Wagstrom told Reuters in February that researchers at USDA believe a vaccine is “a decade away.” Researchers in the European Union believe development of a vaccine may take 20 years. The threat of the disease spreading to the U.S. prompted the cancellation of the World Pork Expo this summer. Since its discovery in China in August 2018, Rabobank estimates that African swine fever has affected 150 million to 200 million pigs, which is nearly 30 percent larger than annual U.S. pork production and equivalent to Europe’s annual pork supply, according to the National Pork Board.

80 Percent of Chinese Farms Not Restocking Following ASF Outbreak

Many farms in China infected with African swine fever are not restocking with pigs. Bloomberg News reports that 80 percent of farms infected with the deadly virus are not restocking, leaving a significant gap in production. China is the world’s largest pork producer, but agriculture officials in China say production has dropped 21 percent since African swine fever was first reported last August. And, a new outbreak on an island province was reported over the weekend. The declining hog production in China will result in lower demand for soybeans and feed products, but an increase in the need for pork products. Officials in China say, “if confidence among breeders fails to recover, it will hurt consumers.” They predict pork supplies could start to tighten and prices may hit record levels in the second half of the year, before tightening further in 2020. Pork accounts for more than 60 percent of meat consumption in China.

NCBA CEO Kendal Frazier Announces Plans for Retirement

After 34 years with the National Cattlemen’s Beef Association, the past four as CEO, Kendal Frazier announced his plans for retirement Tuesday. Frazier’s career began as a farm broadcaster in Kansas, where he also served as director of communications for the Kansas Livestock Association, before moving to Denver, Colorado, to join the staff of the National Cattlemen’s Association, the predecessor organization to NCBA. Frazer says it “has been an honor to serve the men and women who make their living in the cattle business,” adding he is confident that he is “leaving NCBA in a good place.” During his tenure, the organization says his commitment to improving domestic and international demand for beef has been unwavering. Likewise, he has dedicated significant resources to ensuring beef producers continue to enjoy the freedom to operate by ensuring member’s priorities in Washington, D.C., remain a core focus for the association. NCBA will begin the search process to select a new CEO immediately, and Frazier will remain in place to assist with the transition process, until December 31, 2019.

ACLU Suing Iowa Over Ag-gag Law

ACLU Iowa has filed a lawsuit challenging the sates new ag-gag law. Filed Monday, the lawsuit claims the law is unconstitutional, like the 2012 law passed in Iowa that was struck down in a federal court in January. The new law creates a new crime, called “agricultural production facility trespass,” that makes it illegal for a person to gain access to an agricultural production facility through deception if the person intends to cause “economic harm or other injury” of the facility. ACLU Iowa claims the new law “aims to silence critics of worker rights abuses, animal cruelty, unsafe food safety practices, and environmental hazards in agricultural facilities.” However, Iowa agriculture secretary Mike Naig told the Des Moines Register that the law “provides important protections that allow producers to raise their livestock without the fear of special interest groups with malicious intentions harming their animals or businesses.” Lawmakers say the new law narrowly focused on false speech that is intended to cause harm.

US Farm Banks Increase Ag Lending

U.S. farm banks increased agricultural lending by 5.3%, or $5.5 billion, to $108 billion in 2018, according to the American Bankers Association’s annual Farm Bank Performance Report. The report—an analysis by ABA’s economic research team based on FDIC data—examines the performance of the nation’s 1,772 banks that specialize in agricultural lending. ABA defines farm banks as banks whose ratio of domestic farm loans to total domestic loans is greater than or equal to the industry average. In 2018, farm banks’ asset quality remained healthy and non-performing loans stayed at a pre-recession level of 0.52 percent of total loans. More than 94% of farm banks were profitable in 2018, with more than 63% reporting an increase in earnings. Farm banks also served as job creators, adding more than 1,500 jobs in 2018, a 1.8% increase, and employing more than 86,000 rural Americans. Since 2008, employment at farm banks has risen 24.4%. “Even in the face of a slowing ag economy and harsh weather, farm banks continue to perform strongly while meeting the credit needs of farmers, ranchers and their communities,” said ABA Chief Economist James Chessen. “They play a critical role in the success of farms large and small, and their civic engagement and the jobs they provide make them the lifeblood of many rural communities across the country.” Farm banks also continued to build high-quality capital throughout 2018 and are well-insulated from risks associated within the agricultural sector. Equity capital at farm banks increased 6.1% to $48.7 billion, while Tier 1 capital increased by $3.3 billion to $46.7 billion. The capital-to-assets ratio improved as well with the median Tier 1 leverage ratio for farm banks rising by 42 basis points during 2018. The entire banking industry – not just farm banks – provides farmers and ranchers with the credit they need. At the end of 2018, banks held $186 billion in farm and ranch loans. The U.S. banking industry is also a major source of funding to small farmers with more than $76 billion in small and micro farm and ranch loans on the books at the end of 2017. A small farm loan is a loan with an original value of $500,000 or less and a micro farm loan is a loan with an original value of $100,000 or less. The Farm Bank Performance Report also provides regional summaries: • The Northeast region’s 12 farm banks increased farm loans by 14.7% to $1.3 billion. Ag production loans rose 3.6% and farmland loans rose 17.66%. • The South region’s 181 farm banks increased farm loans by 7.49% to $8.4 billion. Ag production loans increased 9.84% and farmland loans rose 6.55%. • The Cornbelt region’s 842 farm banks increased farm loans by 5.24% to $47.9 billion. Ag production loans increased 3.31% and farmland loans rose 6.88%. • The Plains region’s 677 farm banks increased farm loans by 4.64% to more than $40.3 billion. Ag production loans increased 2.6% and farmland loans rose 6.95%. • The West region’s 60 farm banks increased farm loans by 5.4% to $10.1 billion. Ag production loans increased 5.64% and farmland loans rose 5.3%

NCBA President Announces Retirement

After 34 years with the National Cattlemen’s Beef Association (NCBA), the past four as CEO, Kendal Frazier on Tuesday announced his plans for retirement. Frazier’s career began as a farm broadcaster in Kansas, where he also served as director of communications for Kansas Livestock Association, before moving to Denver, Colo., to join the staff of the National Cattlemen’s Association (NCA), predecessor organization to NCBA. When NCA merged with the National Livestock and Meat Board in 1996, Frazier was a member of the team who worked with staff and beef industry volunteer leaders to address a steep decline in demand, helping to address the consumer concerns which had led to losses in market share and falling prices. This work ultimately helped to reverse those declines and set the industry on a new, consumer-focused path. Frazier was also instrumental in helping secure the passage of the checkoff referendum and worked to secure resources for the first checkoff-funded public relations and issues management work conducted by NCBA as a contractor to the Beef Checkoff in 1998. That work would prove to be vital to the long-term success of the beef industry in 2003, when the first domestic case of bovine spongiform encephalopathy was announced. The work done by Frazier and the NCBA team helped maintain consumer confidence around the globe and ensured very effort was made to minimize the impact on the beef industry. “It has been my pleasure to work closely with Kendal for many years and I can say without a doubt that we are far better off because of his service to cattlemen and cattlewomen,” said NCBA President Jennifer Houston. “His steady hand and thoughtful leadership have been a key part of so many opportunities and challenges that have shaped the beef industry now and literally for the past few decades,” said Ross Wilson, CEO of Texas Cattle Feeders Association. "We truly are a better industry because of Kendal Frazier.” NCBA immediately will begin the search process to select a new CEO, and Frazier will remain in place to assist with the transition process, until Dec. 31.

February data shows imports slide more than exports

The value of U.S. ag exports fell to $10.87 billion in February, down from $11.93 billion in January, but the decline in the value of imports was even greater – imports were valued at $9.95 billion compared with $11.36 billion in January. That elevated the U.S. ag trade surplus to $929 million, up from $564 million in January. So far in Fiscal Year (FY) 2019, U.S. ag exports total $57.9 billion, down from $62.01 billion at this point in FY 2018, while imports are at $53.21 billion, up from $52.24 billion at this stage in FY 2018. That puts the cumulative trade surplus at $4.69 billion so far in FY 2019, down more than 50 percent from the $9.78 billion at this point in FY 2018. This marked three months in a row where the U.S. trade surplus was under $1 billion. This also was the first month since September that the value of U.S. ag imports has been below $10 billion.

China expects surge in pork imports

Pork prices are likely to see "drastic" increases in 2019 in China due to African swine fever (ASF) and imports of pork are expected to rise more than 40% from last year and hit 1.7 million metric tons, according to a report released at the China Agricultural Outlook Conference. The conference is sponsored by the Agricultural Information Institute which is a part of the Chinese Academy of Agricultural Sciences. Xinhua said the report also indicated that the area planted to rice, wheat and corn will remain around 95.87 million hectares (237 million acres) in 2019, with soybean area to increase by about 666,666 hectares (1.6 million acres). The report said imports of cotton, edible oils, sugar and dairy products will continue to rise this year, but the Xinhua recap did not specify any tonnages.

Washington Insider: Trade Policy Efforts Intensify

Bloomberg is reporting this week that Japan’s Prime Minister Shinzo Abe is heading to Washington and the U.S. ag industry is unusually active in pushing efforts toward “more open” markets in Japan. Bloomberg’s report notes that the Prime Minister will be hosted by President Trump at the White House April 26-27. The report commented that President Trump is under strong pressure from the agriculture industry, among others, to reach a deal soon that will can “crack open” Japan’s market—and to reduce a $60 billion trade deficit. Abe wants to avoid tariffs or quotas on lucrative auto exports. U.S. farmers, including beef and pork producers, are urging quick action and argue that the Japan-U.S. talks are critical in light of the administration’s decision to abandon the Trans-Pacific Partnership shortly after taking office. U.S. producers are particularly worried about losing Japanese sales now that competitors enjoy a tariff advantage under the new 11-member Comprehensive and Progressive Trans-Pacific Partnership. “That’s a real political problem for President Trump, because those interests are concentrated in a lot of the states that he won” in 2016, said Matthew Goodman, a senior adviser for Asian economics at the Center for Strategic and International Studies. A first round of talks earlier this month in Washington focused on agriculture and cars with digital trade set to be discussed at a later date, Japan’s economy minister Toshimitsu Motegi told reporters after the discussions. He said negotiations will now take place at an accelerated pace. In fact, the discussions with Japan are only one of several important trade related efforts underway just now. For example, trade watchers are looking for a vote in the Mexican Congress to clear labor overhaul legislation, which is critical for advancing the U.S.-Mexico-Canada Agreement (USMCA), Bloomberg says. The Mexican Senate is reviewing the labor reform provisions in the proposed deal and lawmakers expect to vote on it this week, according to a Mexican embassy official. The bill, which recently passed the lower house, would require the Mexican government and companies protect workers’ rights to vote for independent unions through a secret ballot process and recognize their right to strike. Other provisions would prohibit violence against workers and forced labor. However, Democrats in the U.S. Congress say the USMCA’s labor provisions are inadequate without action from Mexico. U.S. House Speaker Nancy Pelosi, D-Calif., recently said treatment of Mexican workers is an issue that must be resolved before the USMCA can be considered. Also on the calendar in Congress this week, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, will convene his committee to review the International Trade Commission report on the USMCA. The discussion will be with Republican committee staff and will focus on the report’s conclusions. Grassley said he is in the process of reviewing the ITC report and along with other studies of the USMCA’s potential impact. Supporters say the report illustrates the need to move quickly. Opponents and those yet to take a formal position are arguing that the new pact will fail in Congress without improvements. In addition, the deal is approaching a critical juncture as the administration decides when to submit implementing legislation to Congress. Mexico’s ambassador to the U.S., Martha Barcena Coqui, is in this country now, participating in a conference at Georgetown University’s Center for the Advancement of the Rule of Law in the Americas that is exploring whether and how Democrats’ demands on labor, environment, and access to medicines can be addressed, including whether they can be included in the implementing bill or as additions to the agreement. The administration is courting labor support for the pact, but AFL-CIO President Richard Trumka warns against rushing the pact through, adding the federation opposes congressional approval without labor and environment enforcement improvements. Trumka will participate in an interview with Economic Club President David Rubenstein on Tuesday. USMCA and global trade are among the topics. Trade policy has been a central issue all through the administration’s tenure and many of the key decisions have been both extremely aggressive and highly controversial. As a result, the further intensifying discussions of issues old and new this spring are extremely important and should be watched closely by producers as those debates proceed, Washington Insider believes.

USDA Weekly Crop Progress - Corn, Spring Wheat Planting Well Below Average Pace

OMAHA (DTN) -- U.S. corn planting came in at 6% this week, remaining behind the five-year average of 12%. Spring wheat planting is 5% completed, also well behind the five-year average of 22%, according to USDA NASS' weekly Crop Progress report on Monday. For the week ended Sunday, April 21, the nation's corn crop gained 3 percentage points from the previous week, but is 2 percentage points behind this time last year and is 6 percentage points behind the five-year average. "There were notable gains in Tennessee, Kansas and Missouri -- a sign that planting is migrating slowly northward," DTN Lead Analyst Todd Hultman said. Soybeans came in at 1% planted, below the five-year average of 2%. Early activity was noticed in Louisiana, Mississippi and Arkansas Spring wheat planting was up 3 percentage points from last week and 2 percentage points from this time last year. However, spring wheat planting is currently 17 percentage points below the five-year average. Outside of the Pacific Northwest, Montana was 10% planted and South Dakota was 2% planted. Progress of the winter wheat crop came in at 9% headed as of Sunday, 6 percentage points lower than the same time last year and also behind the five-year average of 18%. The condition of the winter wheat crop, on the other hand, increased 2 percentage points and is now at 62% good to excellent, well above this time last year when the condition was just 31% good to excellent. "The top producer, Kansas, showed winter wheat crops at 57% good-to-excellent. Ohio and Michigan continue to have the highest poor-to-very poor ratings at 26% and 22%, respectively," said Hultman. Sorghum was 17% planted, compared to 23% last year and a 22% five-year average. Cotton planting was 9% complete, compared to 10% last year and a 9% average. Rice was 31% planted, compared to 47% last year and a 47% average. Eighteen percent of rice was emerged, compared to 20% last year and an average of 25%. Oats were 36% planted as of April 21, compared to 31% last year and a 51% average. Emergence was at 18%, compared to 20% last year and a 25% average.

USDA Announces Enhancements to Livestock and Dairy Insurance Programs

The Department of Agriculture's Risk Management Agency Monday announced several enhancements to the Dairy Revenue Protection, Livestock Gross Margin and Livestock Risk Protection Programs. Risk Management Agency Administrator Martin Barbre says the changes "strengthen risk management options and provide peace of mind in times of unpredictable market fluctuations." The Livestock Gross Margin program protects against loss of gross margin or the market value of livestock minus feed costs. The Bipartisan Budget Act of 2018 removed the livestock capacity limitation, which allowed the program to remove the individual capacity limitation under the cattle, dairy and swine program. The Livestock Risk Protection program protects livestock producers from the impact of declining market prices. Improvements include expanded coverage for swine, fed and feeder cattle to all states. The Dairy Revenue Protection program is designed to cover unexpected declines in the quarterly revenue from milk sales compared with a guaranteed coverage level. Improvements for the 2020 crop year include changes in minimum declarations for butterfat and adjusting coverage levels. Learn more about the changes at https://www.rma.usda.gov.

Trade Coalition Calls for Tariff Elimination in U.S.-China Negotiations

Americans for Free Trade, a coalition of business organizations, is urging the Trump administration to include tariff elimination in the U.S.-China trade talks. The coalition Monday sent a letter to Trump urging five specific outcomes from U.S.-China trade talks, which the White House has said are nearing completion. The letter, which was signed by 151 coalition association partners, is asking for the full and immediate removal of all recently imposed tariffs, including U.S. tariffs and China’s retaliatory tariffs as part of a final deal. The organization also wants a deal that levels the playing field for U.S. companies by addressing China’s unfair trade practices that put American technology, innovation and intellectual property at risk. Further, the coalition seeks the avoidance of any enforcement mechanism that would trigger further tariffs, and clarity on how the tariff exemption process will be carried out in the event of a deal. Finally, the coalition is asking for an economic assessment by the administration examining the costs of tariffs for American businesses and consumers.

Ag Groups Welcome USMCA ITC Report

Agriculture groups welcomed the International Trade Commission report on the U.S.-Mexico-Canada Trade Agreement released late last week, even though it lacks full benefits for agriculture. National Corn Growers Association President Lynn Chrisp says the report “doesn’t fully capture” the economic benefits of trade with Canada and Mexico because it’s an update to NAFTA, which already eliminated most tariffs on exports of U.S. food and agriculture products. Brian Kuehl (keel) of Farmers for Free Trade called the report an important step, but noted “the benefits of North American trade are already well understood, particularly by farmers and ranchers.” Under the North American Free Trade Agreement, ag exports to Canada and Mexico, grew from $8 billion in 1993 to $40 billion last year. Farm groups are urging Congress to pass the agreement. U.S. Dairy Export Council President and CEO Tom Vilsack says that without USMCA, U.S. dairy farmers “lose out” on new rules that make reforms to Canada’s diary system. Vilsack also noted the importance of Mexico to U.S. dairy, as the U.S. shipped $1.4 billion in dairy products to Mexico last year, accounting for more than one-fourth of U.S. dairy exports

Farm Groups Request Disaster Relief

Farm groups and agriculture lenders are urging lawmakers to pass disaster aid. More than 135 farm groups and banks last week penned a letter urging President Trump and Congress to “put aside political differences and supply urgently needed relief.” The organizations, including the American Farm Bureau Federation, highlighted the “unprecedented destruction” in the letter from 2018 and 2019. Farmers and ranchers are especially anxious for relief because the disasters have come on top of an ongoing downturn in farm income. In response, many banks have tightened credit, placing some growers in jeopardy of not receiving critical funds needed to plant this year's crops without some form of federal relief. Estimated agriculture losses in Alabama, Florida, Georgia, North Carolina, and South Carolina alone total nearly $5.5 billion. Nebraska, Iowa and Missouri currently estimate losses at more than $3 billion. Father, the groups say droughts have devastated the Southwest, and wildfires have done the same in the West. Meanwhile, Puerto Rico encountered its own humanitarian crisis from hurricanes Irma and Maria. For many farmers, the groups say, these events have meant near complete losses.

New Legislation Would Ease Chapter 12 Bankruptcy Rules Amid Farm Economy Slump

A bill announced last week would ease the process of reorganizing debt through Chapter 12 bankruptcy rules, making more farms eligible. The move comes amid a continued downturn in the farm economy. Led by Representative Antonio Delgado, the legislation is the companion bill to a measure already filed in the Senate. The New York Democrat says The Family Farmer Relief Act “will provide the critical restructuring and repayment flexibility” farmers need to get through hard times. Specifically, the legislation expands the debt cap that can be covered under Chapter 12 bankruptcy from $3.2 million to $10 million. The changes reflect the increase in land values, as well as the growth over time in the average size of U.S. farming operations and are meant to provide farmers additional options to manage the downturn in the farm economy. The legislation is endorsed by the American Farm Bureau Federation and National Farmers Union. The bill will now be referred to the House Judiciary Committee for consideration.

Culver’s #Farming Fridays on Social Media Returns

Back for its fourth consecutive year, Culver’s #FarmingFridays return April 26, 2019. Created in 2016, the social media series profiles influential people who are passionate about educating others about agricultural. The influencers will share their stories on Culver's Facebook, Instagram, Twitter and Snapchat accounts. Different folks that represent and work in agriculture will participate in April, June, August, September and October. A Culver’s spokesperson says the restaurant chain “feels it's important to celebrate and support the hard work that goes into providing our country with food.” #FarmingFridays is part of Culver's Thank You Farmers Project, which supports agricultural education programs. To date, Culver's and its guests have donated over $2 million to agricultural education efforts, such as the National FFA Organization. Find the dates and list of influences who will participate at www.culvers.com.

MDA Announces Noxious Weed Trust Fund Grant Recipients

Helena, Mont. - The Montana Department of Agriculture and Noxious Weed Management Advisory Council has awarded over $1.79 million for the development and implementation of noxious weed management programs across Montana. The grants, which were awarded in March, assist counties, conservation districts, local communities, tribes, researchers and educators in efforts to combat noxious weeds in Montana. 58 local cooperative projects were funded at a total of $1,247,871 or 70% of all dollars awarded. Twelve research projects were funded at $309,380 and 11 educational projects were awarded $234,591. Combined research and educational projects were awarded a total of $543,971 or 30% of all funding available. In addition to the $1.79 million grant hearing awards, each of the 56 counties and 7 reservations in the state are eligible to receive $7,500 per year. The Montana Noxious Weed Trust Fund grant program was established by the Montana Legislature in 1985. The advisory council reviews applications, hears applicant testimony, and provides funding recommendations to the director for final approval. Funding is typically passed through a governmental organization, local weed district, conservation district, extension office, or university. A compiled list of award recipients is available at http://agr.mt.gov/Noxious-Weed-Trust-Fund-Grants. Applications for 2020 Noxious Weed Trust Fund grants can be found at https://fundingmt.org in mid-July, for completion and submission by January 6, 2020. The Montana Department of Agriculture’s mission is to protect producers and consumers, and to enhance and develop agriculture and allied industries. For more information on the Montana Department of Agriculture, visit agr.mt.gov.