China Major Focus in Annual Report On US Trade Barriers

Chinese trade practices, such as excess capacity, forced technology transfer and online piracy is a major focus in the 2017 National Trade Estimate Report on Foreign Trade Barriers, issued by the Office of the U.S. Trade Representative (USTR). The report lists major problems posed for U.S. exports and investments on a country-by-country basis with the intention of reducing barriers and opening markets to U.S. goods and services.The 19 pages in the report devoted to China includes the lack of access for U.S. beef, and will provide ammunition for President Donald Trump and his trade team when they meet their Chinese counterparts April 6-7 in Florida.Regarding China, the following are two commentaries from the report:Agricultural Biotechnology: Overall delays in China’s approval process for agricultural products derived from biotechnology worsened in 2016, creating increased uncertainty among traders and resulting in adverse trade impact, particularly for U.S. exports of corn. In addition, the asynchrony between China’s product approvals and the product approvals made by other countries widened. China has made repeated bilateral commitments to work with the U.S. and to improve its approval process, without demonstrable progress. Currently, eight products of importance to U.S. export interests are awaiting biotechnology approvals in China.Beef: China’s longstanding import ban on U.S. beef creates a significant trade barrier that appears to lack scientific justification and consistency with international standards. Even though the U.S. is internationally recognized by the World Organization on Animal Health (OIE) as one of the safest producers of beef and has “negligible risk” status, China has banned imports of U.S. beef since 2003, and it is seeking to impose onerous requirements on future imports of U.S. beef, including full traceability of the cow from birth farm to slaughter facility. 

Agriculture Groups Focus on Importance of Immigration Reform in Letter to President

The Agriculture Workforce Coalition last week emphasized the importance of immigration reform for America’s farmers and ranchers in a letter sent to President Donald Trump. 70 groups representing a variety of crops grown in every region in the country joined in sending the letter that calls for reforms to ensure that American agriculture has a legal, stable supply of workers in both the long and short-term for all types of producers. The groups say farmers are facing growing shortages of legally authorized and experienced workers each year. The letter says the labor shortage “negatively impacts economic competitiveness, local economies and jobs.” The groups say they support strengthening the border and says the U.S. must relieve pressure on the border by providing a lawful path for foreign workers to enter the U.S. on a nonimmigrant basis. The groups point out the only current guest worker program available, the H-2A visa program, is cumbersome and dysfunctional and only allows for temporary or seasonal workers. Therefore, it cannot be used by farmers.

FMC to Acquire Part of Divested DuPont Crop Protection Business

FMC Corporation announced Friday it would acquire a portion of DuPont's crop protection business that DuPont is divesting as part of its merger agreement with Dow. Additionally, DuPont will acquire FMC Health and Nutrition and receive $1.2 billion in cash. The European Union agreed to approve the Dow-DuPont merger, if the companies divested some assets, including research and development. FMC will acquire DuPont’s global chewing pest insecticide portfolio, its global cereal broadleaf herbicides, and a substantial portion of DuPont’s global crop protection research and development capabilities. After closing of the acquisition, FMC Agricultural Solutions will become the fifth largest crop protection chemical company in the world by revenue, with estimated annual revenue of approximately $3.8 billion. The transaction is subject to the closing of the Dow and DuPont merger. Closing is expected to occur in the fourth quarter of 2017. 

GRAIN STOCKS – MARCH 1, 2017 MONTANA

Off-farm corn stocks in Montana on March 1, 2017 were 109,000 bushels, up 98 percent from March 1, 2016, according to the March 1 Agricultural Survey and March Grain Stocks Report conducted by the Mountain Regional Field Office of the National Agricultural Statistics Service, USDA. All oat stocks in Montana were estimated at 768,000 bushels, up 30 percent from last year. On-farm oat stocks were 660,000 bushels, up 20 percent from a year ago. Oats stored off-farm were up 151 percent from last year to 108,000 bushels. Montana barley stocks in all positions on March 1, 2017 were 29.01 million bushels, up 18 percent from a year ago. Barley stored on farms was 17.00 million bushels, up 55 percent from last year. Off-farm barley storage was down 12 percent from a year ago to 12.01 million bushels.   PROSPECTIVE PLANTINGS – MARCH 1, 2017 MONTANA HIGHLIGHTS As of March 1, Montana growers intend to plant 120,000 acres of corn for all purposes in 2017, up 5,000 acres, or 4 percent from last year's plantings, according to the March 1 Agricultural Survey conducted by the Mountain Regional Field Office of the National Agricultural Statistics Service, USDA. The area expected to be seeded to oats, at 55,000 acres, is down 5,000 acres from a year ago. Growers intend to plant 690,000 acres of barley in 2017, down 300,000 acres from last year's actual plantings, and the lowest plantings since 1953. All wheat acreage is expected to total 5.19 million acres for 2017. Winter wheat seeded last fall for harvest in 2017 is estimated at 1.90 million acres, down 350,000 acres from the 2016 crop, and the lowest plantings since 2004. Growers intend to seed 690,000 acres of Durum wheat this year, down 90,000 acres from last year. Growers intend to seed 2.60 million acres of spring wheat this year, up 450,000 acres from last year. Hay producers in the State intend to harvest 2.60 million acres this year. This is down 50,000 acres from the acreage cut for hay in 2016. Montana canola producers intend to plant a record high 110,000 acres in 2017, up 48,000 acres from 2016. Flaxseed producers intend to plant 25,000 acres in 2017, down 4,000 acres from last year. The area planted to sugarbeets is expected to be down 600 acres from last year's actual plantings to 45,000 acres. Dry edible bean acreage is expected to total 210,000 acres, up 104 percent from the 103,000 acres planted in 2016. All garbanzo beans (chickpeas) area planted is expected to total 198,000 acres, up 99,000 acres from 2016. Lentil acres planted for 2017 are expected to total 640,000 acres, up 120,000 acres from last year. All dry edible pea area planted is expected to total 460,000 acres, down 150,000 acres from last year. Austrian winter pea area planted is expected to total 15,000 acres, unchanged from 2016.   

All Wheat Stocks Stored in Northwest Region Report

All Wheat Stocks Stored in Northwest Region Up 36 Percent from March 1, 2016 All wheat stored in all positions on March 1, 2017 totaled 55.4 million bushels in Idaho, up from 36.4 million bushels a year ago. Off-farm stocks were up 57 percent, while on-farm stocks were up 41 percent compared to the previous year. In Oregon, wheat stored in all positions totaled 27.7 million bushels, up from 21.6 million bushels a year ago. Off-farm stocks were up 22 percent, while on-farm stocks were up 72 percent compared to the previous year. In Washington, wheat stored in all positions totaled 104 million bushels, up from 80.0 million bushels a year ago. Off-farm stocks were up 26 percent, while on-farm stocks were up 96 percent compared to the previous year. Nationally, wheat stored in all positions totaled 1.66 billion bushels, up from 1.37 billion bushels a year ago. Off-farm stocks were up 24 percent, while on-farm stocks were up 9 percent compared to the previous year. Barley stocks in all positions on March 1, 2017 totaled 36.6 million bushels in Idaho, up from 29.8 million bushels a year ago. Off-farm stocks were up 17 percent, while on-farm stocks were up 33 percent compared to the previous year. In Oregon, barley stored in all positions totaled 617,000 bushels, down from 662,000 bushels a year ago. Off-farm stocks were down 8 percent, while on-farm stocks were down 5 percent compared to the previous year. In Washington, barley stored in all positions totaled 4.23 million bushels, up from 3.12 million bushels a year ago. Off-farm stocks were up 30 percent, while on-farm stocks were up 62 percent compared to the previous year. Nationally, barley stored in all positions totaled 147 million bushels, up from 138 million bushels a year ago. Off-farm stocks were up 13 percent, while on-farm stocks were down 2 percent compared to the previous year. Oats stored in off-farm locations on March 1, 2017 totaled 323,000 bushels in Idaho, up from 165,000 bushels a year ago. In Oregon, oats stored in off-farm locations totaled 434,000 bushels, up from 368,000 bushels a year ago. In Washington, oats stored in off-farm locations totaled 78,000 bushels, up from 58,000 bushels the previous year. Nationally, oats stored in all positions totaled 63.2 million bushels, down from 75.2 million bushels a year ago. Off-farm stocks were down 16 percent, while on-farm stocks were down 17 percent compared to the previous year. Corn stored in off-farm locations on March 1, 2017 totaled 6.45 million bushels in Idaho, up from 5.49 million bushels a year ago. In Washington, corn stored in off-farm locations totaled 10.7 million bushels, down from 12.3 million bushels a year ago. Nationally, corn stored in all positions totaled 8.62 billion bushels, up from 7.82 billion bushels a year ago. Offfarm stocks were up 6 percent, while on-farm stocks were up 13 percent compared to the previous year. 

All-Acres Northwest Report

All Wheat Acres Planted in the Northwest down 1 percent from 2016 Barley Acres Planted in the Northwest up 9 percent from Last Year Corn Acres Planted in the Northwest down 3 percent from 2016 All Hay Acres Harvested in the Northwest up 1 percent from Last Year Wheat producers in Idaho, expect to plant 1.175 million acres of wheat for harvest this year, down slightly from 2016. Winter wheat acres planted are estimated at 730,000 acres, down 4 percent from last year. Planted acres of Durum wheat in Idaho, are estimated at 15,000 for 2017, up 50 percent from the previous year. Spring wheat planted acres, excluding Durum, are expected to total 430,000 acres, up 5 percent from last year. Total acres planted to wheat in Oregon are estimated at 780,000 acres for 2017, down 4 percent from 2016. Winter wheat accounted for 710,000 acres, down 1 percent from 2016. Other spring wheat planted is estimated at 70,000 acres, down 22 percent from a year ago. Washington is estimated to have 2.25 million total acres planted to wheat in 2017, up slightly from last year. Winter wheat planted acres are expected to total 1.70 million acres for this year, unchanged from 2016. Spring wheat acres planted are estimated at 550 thousand acres, up 2 percent from last year. Nationally, all planted wheat acres are expected to total 46.1 million acres, down 8 percent from 2016. Winter wheat acres are estimated at 32.7 million acres, down 9 percent from 2016. Durum wheat planted acres in the United States for 2017 are estimated at 2.00 million acres, down 17 percent from the previous year. All other spring wheat is estimated at 11.3 million planted acres, down 3 percent from 2016. Acres planted to barley in Idaho for 2017 are estimated at 630,000 acres, up 5 percent from 2016. Oregon barley growers are expected to seed 50,000 acres, up 11 percent from last year. In Washington, acres planted to barley are estimated at 145,000 acres, up 32 percent from the previous year. Total barley planted acres in the United States is estimated at 2.55 million acres for 2017, down 17 percent from 2016. Corn planted acres in Idaho are expected to total 320,000 acres for 2017, down 6 percent from last year. Oregon is estimated to plant 90,000 acres, up 13 percent from 2016. Washington corn growers are expected to plant 160,000 acres this year, down 6 percent from the previous year. Total acres of corn planted in the United States are expected to total 90.0 million acres, down 4 percent from last year All hay acres expected to be harvested in Idaho are estimated at 1.36 million acres, up 2 percent from 2016. In Oregon, all acres to be harvested for hay are estimated at 1.11 million acres, down 2 percent from a year ago. All hay harvested acres in Washington is expected to be 860,000 acres up 2 percent from last year. Nationally, total acres harvested for hay is estimated at 52.8 million acres, down 1 percent from the previous year. 

Farmers And Ranchers Urge Lawmakers To Include Estate Tax Repeal In Tax Reform Legislation

As congressional lawmakers turn their attention to taxes, farmers and ranchers are urging them to include estate tax repeal in any tax reform legislation they consider this year.                                                                                                                                          “The estate tax is especially damaging to agriculture because we are a land-based, capital-intensive industry with few options for paying estate taxes when they come due. Unfortunately, all too often at the time of death, farming and ranching families are forced to sell off land, farm equipment, parts of the operation or take out loans to pay off tax liabilities and attorney’s fees,” 32 agriculture organizations, including the American Farm Bureau Federation, wrote to House Ways and Means Committee Chairman Kevin Brady (R-Texas) and Ranking Member Richard Neal (D-Mass.). The groups also asked lawmakers to ensure the benefits of estate tax repeal are not eroded by the elimination of or restrictions to the use of the stepped-up basis.The American Taxpayer Relief Act of 2012 permanently extended the estate tax exemption level to $5 million per person/$10 million per couple indexed for inflation, and maintained stepped-up basis, but the current economy, combined with the uncertain nature of agricultural production has left many farmers and ranchers guessing about their ability to plan for estate tax liabilities and unable to make prudent business decisions, the letter noted. “Until the estate tax is fully repealed it will continue to threaten the economic viability of family farms and ranches, as well as the rural communities and businesses that agriculture supports,” the groups wrote. Emphasizing that the most effective tax code is a fair one, the organizations asked that “any tax reform legislation considered in Congress [strengthens] the business climate for farm and ranch families while ensuring agricultural businesses can be passed to future generations.”