Trump Administration Self-Initiates Aluminum Investigations

The Trump administration launched a pair of investigations that could lead to import duties of aluminum sheet valued at more than $600 million, the first time in at least 25 years a U.S. administration has "self-initiated" an antidumping or countervailing duty case.While working with the aluminum industry to develop the case, Ross said Commerce is initiating the investigations, which could take up to a year. Then, the U.S. International Trade Commission will have to determine if U.S. producers have been materially injured or threatened with material injury by the imports."In this case, available evidence indicates that Chinese producers are selling aluminum sheet in the United States at prices that are less than fair value and that the Chinese government is providing unfair subsidies to producers of aluminum sheet," Commerce Secretary Wilbur Ross said. The efforts announced Tuesday are in addition to two other investigations – one on aluminum imports from China and a broader Section 232 probe.

Canada Heads to WTO over Softwood Lumber Import Duties Proposed By US

Canada has requested consultation at the WTO with the U.S. over import duties imposed by the U.S. on softwood lumber from Canada."We are reviewing the consultations request," U.S. Trade Representative spokeswoman Amelia Breinig said in a statement. "We are confident that the Department of Commerce's determinations fully comply with WTO rules." She noted the action by Canada is "premature" since the duties are not in place yet and are awaiting a final injury determination by the U.S. International Trade Commission December 18.The proposed anti-subsidy duties range from 3.2% to 8.89%, and countervailing duties range from 3.34% to 18.19%.

Washington Insider: War Over Tax Proposal Details

The fog of the political budget war continues to thicken, the Washington Post reported Wednesday. It said that “outside groups on the right are furiously mobilizing against an agreement that Republican leaders made with Bob Corker, R-Tenn., yesterday to get the tax bill through the Senate Budget Committee.”Apparently, Corker negotiated a deal in September that the tax cuts “cannot increase the national debt by more than $1.5 trillion over the next 10 years.” But, now he’s concerned about various gimmicks and overly rosy assumptions in the bill “that would almost certainly mean the true impact on the debt is far greater than that.”So, the retiring senator has been pushing in recent days to include a “trigger” that would automatically increase taxes down the road if the bill fails to generate the level of economic growth that Republicans leaders keep publicly predicting. This, it seems, has led to all sorts of angst.In addition, the Post says “it’s not clear what exactly GOP leaders promised Corker, who declined to share specifics with reporters.” He said the amendment will be included in an updated version of the bill that is likely to be released publicly on Thursday.This has led to something of a political explosion. The constellation of groups funded by the billionaire industrialist Koch brothers – including Americans for Prosperity and Freedom Partners – came out strongly against any trigger Wednesday last night, and were joined by Grover Norquist from Americans for Tax Reform, the Wall Street Journal editorial board and the U.S. Chamber of Commerce.These groups argue that such a trigger would likely increase taxes during an economic downturn—with strong negative impacts, and which they fear would cause stagnation. They also complain that it would inject even more uncertainty into the tax system, which would make it harder for businesses to plan their long-term investments.Corker asked President Trump about a trigger during a private lunch Wednesday for Senate Republicans—and, the president replied that he does not like the idea “but will accept it if that’s the only way a bill can pass,” the Post said. “There’s agreement in principle, very strong agreement, with Sen. McConnell, R-Ky., with the Finance Committee — and of course the White House has been in the midst of all this, too — but the agreement was made with McConnell and the Finance Committee leadership,” Corker said later in the day.In addition to Corker, the compromise is being crafted to win over other on-the-fence Republicans like Sens. James Lankford of Oklahoma, Jeff Flake of Arizona and Jerry Moran Kansas.With no Democrat planning to vote for the measure, Republicans can only afford two defections when they bring the bill up later this week for a vote on the floor.This new flash point in the delicate negotiations draws attention to the deeper identity crisis for the GOP in the Age of Trump, The Post says. For example, the President, who has declared bankruptcy several times, has made clear that he’s not a fiscal conservative. And Congressional Republicans, when they last had unified control of the federal government under George W. Bush, spent heavily, as vice president, Dick Cheney reportedly declared that Ronald “Reagan proved deficits don’t matter.”The tea party movement that emerged after Republicans lost power during the 2008 financial crisis put a heavy emphasis on tackling the debt, and conservatives running for office chastised the establishment GOP for its lack of fiscal restraint. Many current members of Congress got elected promising they wouldn’t repeat those same mistakes.But once they got power over the purse strings, especially after President Trump took over their party, the tone of most elected Republicans changed once again, The Post says. Meanwhile, the national debt exceeded $20 trillion for the first time ever this fall.Despite this rift, The Post says, the sense in the Capitol now is that there is real momentum toward getting this done. Sen. Susan Collins R-Maine, appeared ready to fall in line after a private meeting with the President yesterday.Still, a challenge remains for Senate GOP leaders, who have two holdout members who want to make the tax cuts more generous, but another half dozen or so Republicans who are still uneasy about potential additions to the debt. These contradictory demands complicate negotiations and will force Senator McConnell to decide who he needs to placate most.It’s not clear for example that he’ll be able to win over Sen. Ron Johnson, R-Wis., who wants to give “pass-through” businesses the same benefits as large corporations—which would increase the cost of the bill by more than $100 billion. Sen. Steve Daines, R-Mont., also wants this change, but he may agree to vote for the bill with a compromise that costs less.So, we will see. Everybody hates taxes and loves tax breaks, but some also really, really hate debt. This will mean still more hard, complicated choices that should be watched closely as the debate proceeds, Washington Insider believes.

Cash receipts in the livestock sector are forecast to grow 7.6%

OMAHA (DTN) -- Cash receipts in the livestock sector are forecast to grow 7.6% for all of 2017 while receipts for crop producers are projected to fall 2%, according to USDA's latest farm income forecast released Wednesday.Overall, net farm income is stabilizing and expected to provide a small bump in 2017 to $63.2 billion, or a 2.7% increase over 2016 numbers. The increase in the overall farm sector comes after three consecutive years of declines.Still, when factoring in inflation, the net farm income -- a broad measure of farm profits -- is relatively unchanged from a year ago.The farm income figures released Wednesday show a slightly better picture looking at "net cash farm income." That measure increased $3.7 billion, or 3.9%, to $96.9 billion. Taking inflation adjustments into account, net cash farm income rose 2.1%.USDA designates "net cash farm income" as a measure counting cash receipts from sales of crop inventories at the beginning of the year. The net cash farm income counts those as current-year income. The "net farm income" measure counts the sales of those beginning-of-the-year inventories as part of prior-year income.Even though both income measures are rising, net farm income in 2017 is still below all years from 2009 to 2015, and net cash farm income is lower in 2017 than the stretch of years from 2011 to 2015.The median household income for farms in 2017 is $77,551, showing an increase of 1.7% for the year after falling 6% in 2015 and remaining flat last year. That was largely due to a 2.3% increase in off-farm income to an average of $67,973 for 2017. Median farm income remains in negative territory at -$1,093 as more than half of farms lost income on their farm operations.While income remained low, comparatively, from seven or eight years ago, farm asset values increased by $81.1 billion, or 2.7%, to $3 trillion in 2017. Farm debt rose 2.9% to $385.2 billion. Nationally, farm equity, a measure of assets to debt, is up $70.1 billion, or 2.7%, to $2.65 trillion in 2017. The increase in assets is attributed to a 3.3% increase in the value of farm real estate. Subsequently, the rise in farm debt is also tied to higher farm real-estate debt.All cash receipts in agriculture are projected at $365.1 billion for 2017, an $8.6 billion increase, or 2.4% higher than 2017. The main driver for higher cash receipts was a $12.4 billion bump in revenue from the livestock sectors. Dairy, poultry-eggs, hogs and cattle receipts all increased in 2017, USDA stated. That was reflected in both price and volumes sold.Cash receipts for crops fell for crops by $3.8 billion, or 2%, to $189.9 billion. The main drivers were declines in receipts for soybeans, as well as the fruit and nut sectors.Despite declines in crop cash receipts, farm program payments are projected to decline $1.8 billion as well, to $11.2 billion, as large declines in Agricultural Risk Coverage (ARC) payments more than offset increases in Price Loss Coverage (PLC) payments, USDA stated.Total production expenses for agriculture are up 1.5% after two years of declines to $355.8 billion. Higher costs were led by higher interest costs, hired labor and fuels-oil. USDA saw declines in prices for feed and fertilizer expenses. 

Montana Farm Bureau submits comments on Sage Grouse Land Management Plan

The Montana Farm Bureau has submitted comments to the Department of the Interior regarding the Bureau of Land Management’s Greater Sage Grouse Land Management Plan. The state’s largest agricultural organization encouraged the DOI to make several improvements to the plan in order to make it more workable for multiple-use lands.The comments highlighted issues in the plan that need to be addressed before the DOI moves forward.:Minimum stubble height requirements on perennial grass and other types of vegetation during certain times of the year: These restrictions limit the extent to which ranchers can graze their animals on public lands, since grazing beyond a certain point risks leaving the grass below the minimum height specified in the plan.  In many cases prairie grass doesn’t reach the proposed minimum height, especially in dry years or years following drought.Requirements that new structures on lands covered by the plans have a neutral or beneficial effect on Greater Sage Grouse habitat: This requirement curtails placement of management structures, such as fences, windmills, and various water developments, that are essential for ranching and farming.Restrictions on construction of new permanent facilities within 1.2 miles of occupied Greater Sage Grouse leks: These restrictions effectively prohibit the construction and use of certain facilities in certain areas. These facilities may include corrals, water tanks and windmills, etc., which are necessary to farming and ranching.Mandatory removal of livestock ponds in certain perennial channels: When a livestock pond in a perennial channel is deemed to have a negative effect of riparian habitats, the proposed plan requires it to be removed. Obviously, reservoirs are often vital for watering herds of livestock in Montana and removal would cause undue harm to ranchers and their livestock.Forced removal or modification of certain fences in areas within 1.2 miles of Greater Sage Grouse leks: Ranching and herding require fences to manage livestock, but the plan variously bans or requires modification of fences in ways that will require more labor for ranchers and make ranching less efficient.Various plans need to work together with the states management plan: There cannot be one plan for private land and another for public land.  The State of Montana worked very hard to establish a management plan that would satisfy requirements and protect the species. The state plans have been approved by the Fish and Wildlife Service for the protection of Greater Sage Grouse; therefore, those plans should be used for public lands, as well. Evaluating and reforming the current Sage Grouse Land Management Plan will allow sage grouse, cattle and other multiple uses to flourish together in the American West. 

New kind of farm going up in southeastern South Dakota

There’s a new kind of farm going up in southeastern South Dakota. Its barns will house cattle like many farms in the area, but these cattle won’t be raised for meat or milk. They’ll be producing antibodies that can treat human diseases.

SAB Biotheraputics, based in Sioux Falls, uses cloned cattle with certain human DNA. The cows are injected with a vaccine and produce antibodies to fight disease. By taking the plasma from their blood and sterilizing it in a lab, the antibodies could be used in humans to battle some of the worst diseases, including Ebola and Zika. The company’s latest focus is treating the type of flu that puts people in the hospital. Some people don’t respond to flu shots, but an influenza therapeutic produced by SAB could help them.

The company is working toward the first clinical trials on influenza, and if approved, SAB’s cattle are ready to produce the treatment. The new facility could make enough of the antibody to meet worldwide demand, using just 20% of its capacity.

SAB just completed its first trial in humans for treating MERS or Middle East Respiratory Syndrome. The results showed that the cow-made antibodies worked just like human antibodies to treat the disease.
SAB will start by moving its 35 cows that now live at the Trans Ova Genetics facility across the border in Iowa. Those cows were implanted with embryos the day after the groundbreaking, preparing to create the next generation of antibody-producing bovines.

The first biosecure barn, measuring 360’x50’, will hold up to 80 cows. At full capacity, the 80-acre site and facility could handle 400 head of cows and 40 employees, according to SAB.  

GAO has made several recommendations to USDA for improving oversight of commodity checkoff programs

The U.S. Government Accountability Office (GAO) has made several recommendations to USDA for improving oversight of commodity checkoff programs, including better review of subcontracts and display of key documents on program websites.There are 22 federal agricultural research and promotion programs, funded by a fraction of the sale of each unit of a commodity. In 2016, check-off funds totaled over $885 million.GAO reviewed eight of the programs, finding that USDA’s Agricultural Marketing Service (AMS) has improved its oversight since the agency’s Office of Inspector General (OIG) made recommendations in a 2012 report. AMS has developed and implemented standard operating procedures and begun to conduct internal reviews of its oversight functions.However, GAO also found that AMS does not consistently review subcontracts, which impairs its ability to prevent misuse of funds, and that only four of the eight checkoff programs shared all key documents, including budget summaries and evaluations of effectiveness, with stakeholders on program websites.In addition to recommending better subcontract oversight and transparency on websites, GAO also suggested that AMS establish a mechanism for tracking checkoff board management review, follow steps to improve annual audits, and develop criteria for assessing whether standard operating procedures are met.