Wednesday, June 13, 2012

Tuesday June 12 Ag News

Johanns Introduces Legislation Banning EPA Aerial Surveillance

Sen. Mike Johanns (R-Neb.) today introduced an amendment to the farm bill banning the Environmental Protection Agency’s (EPA) use of aerial surveillance after the agency failed to provide comprehensive answers about the program’s use nationwide.

“This is a trust issue, and farmers and ranchers don’t trust EPA doing low-level surveillance flights over their operations,” Johanns said. “EPA’s surveillance program only adds to the deficit of trust this closed-door agency has earned of late. It’s past time for Congress to put an end to EPA's use of aerial surveillance.”

Johanns’ amendment specifically prohibits EPA from conducting aerial surveillance to inspect or to record images of agricultural operations. The amendment does not affect the use of traditional on-site inspections.



EPA Flyovers

Larry F Howard, Extension Educator, UNL Extension


There has been a great deal of discussion in the media in recent weeks regarding the EPA Flyovers of Nebraska livestock operations.  In our area, based on discussions I have had with producers this is in fact old news.
We have always tried to be proactive and informed on the issues that face the agricultural industry.  I was contacted in late December 2011 by Region 7 EPA staff asking if we would consider hosting an Outreach Session in our area so they could visit with livestock producers about items related to environmental issues.  I have a good working relationship with both the staff at Region 7 EPA and Nebraska Department of Environmental Quality and have worked hard to maintain a positive relationship between the regulatory and livestock groups.  So I told the group that we would work with them to find a time to host the session.

The public meeting was held in West Point on March 13 (three months ago) and covered the topics: EPA’s Inspection Program including the utilization of aerial over flights to access CAFO’s; What producers can expect during an inspection; Winter feeding areas; Medium CAFO’s; Manure/Litter Stockpiles and other areas of concerns. I had the opportunity to moderate the program and thought the EPA staff did a good job of sharing what their responsibilities are, which is to make sure that livestock operations do not violate the Clean Water Act by discharging waste into streams and rivers.

The audience had the opportunity to ask questions to EPA staff in the public session as well as to address questions individually. Some of the important take home messages that I recall from the informative session were:
·    That the majority of livestock producers in our area are doing a very good job from an environmental standpoint.
·    The flyovers are conducted in a four seat Cessna airplane with EPA staff taking the photos.  They never said they were drones.  They even shared the flight paths of their trips.  They have shared that over 90 percent of the operations viewed from the air have been in compliance which eliminates the need for an onsite inspection.
·    Photos were shared of both good and bad situations related to environmental management.
·    The meeting was very cordial and staff stayed to make sure that producers had a chance to have their questions addressed. They even offered copies of their presentation which several did request and receive.

I do realize that few like to have government involved in their lives.  But we do have to follow the rules and laws that are set. We are fortunate to live in a country where we can work with our elected officials to modify laws as necessary.

As a group of livestock producers shared with me this past week, “If you are doing things right you should not have to worry”.  I am proud to say that the majority of our producers are doing things right.



Five States' Beef Industries Top $2 Billion

USDA's annual publication "Meat Animal Production, Disposition and Income" shows that 5 states had a 2011 value of cattle production in excess of $2 billion: Texas, Nebraska, Kansas, Oklahoma and California. The total for the U.S. was a record $45.176 billion, up $8.2 billion from the year before.



Regulations Halting Farm Growth


Strict rules in place on livestock units are preventing producers from benefitting from economies of scale, in a bid to avoid regulation, according to research by the USDA's Economic Research Service. In 2003, the U.S. Environmental Protection Agency strengthened Federal Clean Water Act regulations governing the handling and application of manure by livestock operations. An important and unchanging feature of these CWA regulations is that operations confining more than a specific number of livestock face more stringent rules. In recent decades, livestock production has increasingly shifted to larger operation sizes that have lower production costs per head. As a result of this structural shift, over time, more operations will face the more stringent regulations. However, farmers could avoid CWA regulations by adjusting the size of their operations to just below the cutoff.

Bunching in the size distribution of livestock operations, an unexpectedly large number of farms located just below the regulatory threshold, suggests that some operators may be keeping the size of their herds at a certain level to avoid the costs of regulation. In the process, they may reduce the regulation's effectiveness and forego economies of scale that increase the efficiency of their operations. Bunching implies that some livestock operators give up lower production costs per head at larger sizes rather than deal with the added costs of regulation.

ERS researchers used US Census of Agriculture data from 2002 and 2007 to examine the size distribution of livestock operations before and after the adoption of the stricter 2003 regulations. The research focused on finish-only hog farms--operations where pigs are raised until they reach market weight. The CWA size threshold was constant at 2,500 head over this period, which made it easier to examine how farm size changed in response to the new rules.

Evident from the findings is the general shift to larger sizes between 2002 and 2007, with fewer operations with less than 1,700 head and more operations with greater than 3,500 head. The distribution varies smoothly across the regulatory threshold prior to adoption of the 2003 CWA rules but shows a sharp discontinuity at the 2,500-head threshold by 2007. Four years after the announcement of the new rules, an estimated eight per cent of potentially regulated operations near the threshold “avoided” regulation by remaining just below the cutoff. Results vary sharply by region, with up to 23 per cent of operations avoiding regulations in some States.



Russian Trade Bill Means Big Opportunities for Soybean Farmers


The American Soybean Association (ASA) welcomes the introduction today of a Senate bill that would graduate Russia from the Jackson-Vanik Amendment to the Trade Act of 1974, and authorize President Barack Obama to establish permanent normal trade relations (PNTR) with the world’s sixth largest economy. ASA urges the immediate passage of the bipartisan bill introduced by Senators Max Baucus (D-Mont.), John Kerry (D-Mass.), John McCain (R-Ariz.) and John Thune (R-S.D.), which enables the U.S. to take advantage of the many market opening commitments that form Russia’s accession package to the World Trade Organization, to which the country was formally invited in late 2011.

Russia is a leading export market for U.S. soy, meat, poultry, egg and dairy products, importing more than $770 million in these products last year.

“Today’s announcement from Sens. Baucus, Kerry, McCain and Thune is an exciting one for farmers,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb. “As Russia’s economy and purchasing power grows, Russian demand for soy products, poultry, pork, dairy and eggs grows as well, and that’s great news for American soybean farmers.”

Russia is home to more than 140 million consumers and a fast-growing economy. As part of its accession to the WTO, Russia will be obligated to bind its agricultural tariffs, adding more predictability to the trading relationship and opening export opportunities for the U.S. agricultural industry. WTO membership will also require Russia to adhere to internationally-recognized scientific standards when regulating meat imports, thereby ensuring greater predictability for U.S. exporters seeking to supply the Russian consumer market.

The establishment of PNTR with Russia is different from a free trade agreement, in that the move will not require the U.S. to provide any market access benefits, lower any U.S. tariffs, or make other changes to our trade laws as a result of Russia’s WTO accession



NCBA Opposes Federal Mandate on Animal Agriculture


Tom Talbot, chairman of the National Cattlemen’s Beef Association (NCBA) Cattle Health and Well-Being Committee, said despite challenges cattlemen and women face, raising healthy cattle is and always has been a top priority. Talbot, who is a veterinarian and California cattle rancher, is appalled that animal care could be taken out of the hands of experts and placed in the control of the federal government. Specifically, Talbot is referring to amendment 2252 to the 2012 Farm Bill offered by Sen. Dianne Feinstein (D-Calif.). The amendment, which would mandate on-farm production practices, was also introduced as legislation, Egg Inspection Act Amendments of 2012 (S. 3239 and H.R. 3298), by Sen. Feinstein and Congressman Kurt Schrader (D-Ore.).

“The U.S. beef community has changed through the years, but the one thing that remains the same is our commitment to raising healthy cattle and providing our animals the best care possible,” Talbot said. “NCBA’s Cattle Health and Wellbeing Committee relies on the latest information from government officials, veterinarians and cattle health experts to ensure our policies reflect the latest science and ensure effective cattle care practices on cattle operations throughout the country.”

Talbot said while cattlemen make it their top priority to care for their animals, there are organizations that attempt to paint a different picture of animal agriculture. Talbot said the amendment to the farm bill would codify an agreement entered into by the Humane Society of the United States and the United Egg Producers to seek federal legislation to mandate egg production practices. Talbot said the agreement creates a slippery slope to allow the federal government to mandate on-farm production practices for all sectors of the agricultural industry.

“This legislation opens up Pandora’s Box on Capitol Hill. While this bill currently only applies to the egg industry, it’s not a far stretch to see it applied to all animal agriculture,” Talbot said. “Cattlemen proactively worked with veterinarians and cattle health experts to develop production guidelines. We worked together to improve our industry. Unfortunately, a one-size fits all federal mandate telling farmers and ranchers how to do their jobs is not acceptable.”

Talbot said he is disappointed in Sen. Feinstein and urges all U.S. senators to side with family farmers and ranchers by rejecting amendment 2252 to the farm bill and the legislation altogether.



Update on Grain Export Progress


Although much of the attention in crop markets is rightly focused on the potential size of the northern hemisphere crops, the ongoing pace of consumption is an important measure of demand strength and the likely level of year-ending stocks, according to University of Illinois agricultural economist Darrel Good.

Following is Good's report focusing on the U.S. export sector for wheat, corn, and soybeans.

"With the 2011-12 marketing year having ended for wheat on May 31, the cumulative export inspections for the year totaled 1.036 billion bushels, slightly above last month's USDA projection of 1.025 billion bushels," Good said. "Through April, cumulative Census Bureau export estimates were about 4 million bushels less than cumulative inspections. Assuming that margin persisted through May, marketing year exports were about 7 million bushels larger than forecast.

"For the marketing year that began on June 1, the USDA has projected exports at 1.150 billion bushels," Good said. "As of May 31, new sales plus unshipped sales from the past marketing year totaled 235.6 million bushels, near the level of sales of a year earlier."

Good said that to reach the USDA projection, shipments will need to average about 22.1 million bushels per week this year. Export inspections during the first week of the year were reported at 21.5 million bushels.

The final quarter of the 2011-12 marketing year for corn and soybeans began on June 1.

"Cumulative corn export inspections during the first three quarters of the year totaled 1.221 billion bushels," Good said. "Through April, cumulative Census Bureau export estimates exceeded inspections by 23 million bushels. Assuming that margin persisted through May, exports during the first three quarters totaled 1.244 billion bushels, 122 million less than during the same period last year."

Good said that the USDA currently forecasts marketing year exports at 1.7 billion bushels. Exports during the final quarter of the year will need to total 456 million bushels, or 34.7 million bushels per week, to reach the projection. Inspections averaged only 26.3 million bushels during the six weeks ended June 7 and dropped to a marketing-year low of 17 million bushels in the latest reporting week. Unshipped sales as of May 31 were reported at 304 million bushels, 87 million less than on the same date last year.

"For sales to reach 1.7 billion bushels, new sales will need to average 11.5 million bushels per week," Good said. "The average sales pace for the five weeks ended May 31 was 7.4 million bushels. Export commitments to date are much larger than those of a year ago for China and Mexico, but down sharply for Japan, Taiwan, and South Korea.

"It now appears that exports for the year will be 75 to 80 million bushels less than projected as U.S. corn has lost market share to feed wheat," Good said. The USDA will update the projection on June 12.

Good reported that the cumulative export inspections of soybeans totaled 1.164 billion bushels during the first three quarters of the 2011-12 marketing year. Through April, cumulative Census Bureau export estimates were about 6 million bushels less than inspections.

"If that margin persisted through May, exports totaled about 1.158 billion bushels, 237 million less than in the first three quarters last year," Good said. "For the year, USDA has projected exports at 1.315 billion bushels. To reach that projection exports during the final quarter will need to total 157 million bushels or an average of 11.9 bushels per week.

According to Good, inspections during the six weeks ended June 7 averaged 14.9 million per week. Unshipped sales as of May 31 totaled 192 million bushels, compared to 154 million on the same date last year. It now appears that marketing-year exports could exceed the USDA projection (to be updated on June 12) by as much as 25 million bushels as the U.S benefits from the shortfall in South American production.

Good said China continues to be the major purchaser of U.S. soybeans (62 % to date) and has already made large purchases for delivery during the 2012-13 marketing year.

"It appears that corn exports will come up well short of 1.7 billion bushels, pointing to larger year-ending stocks than currently projected," Good said. "Some of the shortfall in exports may be made up by slightly larger consumption for ethanol production as during the first three quarters of the year, ethanol production was about 2 percent larger than a year earlier.

"The big unknown, however, is the magnitude of feed and residual use of corn during the last half of the year. Quarterly use in that category has been difficult to anticipate over the past two years. The June 1 corn stocks estimate, along with the level of wheat prices, and the pace of maturity of the 2012 corn crop will shed more light on use in that category," Good said.

Good said that while month-end acreage and stocks reports will be important for crop prices, prices will continue to be heavily influenced by 2012 yield prospects.

"To date, the corn market has displayed relatively little concern about the cumulative and upcoming moisture deficits in large areas of the central, eastern, and southern growing areas," Good said.



May Tractor Sales Up From Last Year


The Association of Equipment Manufacturers' monthly Flash Report says the sales of all tractors in the U.S. for May 2012 were up 13% compared to the same month last year.  Two-wheel-drive smaller tractor (under 40 HP) were up 7% from last year, and 40 & under 100 HP were up 20%. Sales of two-wheel-drive 100+ HP were up 28% from last year, and four-wheel-drive tractors were up 5% for the month.  Combine sales were down 2% for the month.

For the year 2012, a total of 74,387 tractors were sold, which compares to 69,609 sold through May 2011.  For the first five months, two-wheel drive smaller tractors (under 40 HP) are up 7% from last year, while 40 & under 100 HP are up 9%. Sales of 2-wheel drive 100+ HP are up 5%, while 4-Wheel Drive tractors are down 0.9% for the year.  Sales of combines for the first five months totaled 2,421, a decrease of 33% over the same period in 2011.



Hundreds of Organizations Ask Congress to “Hold the Line” on Conservation Programs in the Farm Bill


Today, more than 500 organizations, businesses and individuals signed a letter asking congressional leaders not to further cut funding to the Conservation Title of the Farm Bill. Noting that conservation programs already have been significantly cut in recent years and will bear more than their fair share of deficit reduction in the Farm Bill as currently drafted, the letter asks Congress to “hold the line” on conservation funding at the amounts provided in the bill approved by the Senate Agriculture Committee.

The 523 signatories comprise large and small organizations, businesses and landowners from all across America, collectively representing tens of millions of Americans.

The letter notes that conservation programs are essential to the sustainability of agriculture and forestry in the United States and to meeting the growing demand for food and fiber at home and abroad. These programs are “high-leverage investments in rural America,” protecting natural resources by funding a variety of voluntary partnerships and cooperative conservation efforts between the U.S. Department of Agriculture and private landowners.

“Since the 2008 farm bill was enacted, Conservation Title programs have already been cut significantly through the annual appropriations process, particularly in the last two agriculture appropriations bills, and these cuts have had real and unfortunate impacts on the ground. The additional significant cuts to conservation funding included in the bill advanced by the Senate Agriculture Committee, if enacted, mean that the Conservation Title is already contributing more than its fair share to budget deficit reduction. While policy improvements can help reduce the impact of these additional cuts, they will, nevertheless have a negative impact on the ground. Further cuts would jeopardize this country’s entire system of successful agricultural and forestry conservation programs. And so we urge you to hold the line on Conservation Title funding at the amounts provided in the bill approved by the Senate Agriculture Committee on April 26th, 2012,” states the letter.

Conservation Title programs “are both popular and highly effective,” state the groups in the letter. These programs “recognize that the health of America’s soil, water, wildlife, and other natural resources is essential to the long term productivity and economic viability of agriculture and forestry, that protecting and managing our natural resources is critical to the future of American communities, and that most of our nation’s opportunities for hunting, fishing, and observing nature depend upon privately owned habitat on working farms, ranches and forest land.”

The letter concludes, “Maintaining, strengthening, and providing sufficient funding for the Conservation Title programs will deliver multiple benefits for every region of America. Not the least of these is helping America’s farmers, ranchers, and private forest land owners to stay on the land as stewards of America’s natural resources.”

The letter was coordinated and distributed by 11 agricultural, forestry, and conservation organizations. They are American Farmland Trust, Association of Fish and Wildlife Agencies, Ducks Unlimited, Environmental Defense Fund, Land Trust Alliance, National Association of Conservation Districts, National Sustainable Agriculture Coalition, National Wildlife Federation, The Nature Conservancy, Theodore Roosevelt Conservation Partnership and Trout Unlimited.



FFA Agricultural Career Network Connects Students with Employers


The National FFA Organization has announced a first-of-its-kind formation of partnerships to assist its members’ efforts toward career success.  Through the Agricultural Career Network (AgCN), FFA will work in collaboration with Career Cruising, a provider of age-appropriate career planners, assessments and other resources; and AgCareers.com, a leading provider of Human Resources services to agricultural companies. These partnerships will provide valuable tools and assistance for students in their pursuits of more than 300 careers in agriculture.

Launched last December, AgCN is a nationwide system designed to help FFA members document their educational achievements, create robust portfolios and pursue award, scholarship, internship and employment opportunities. The network will provide a database of students who are interested in particular career fields within the industry.

Through the National FFA Organization’s relationship with Career Cruising, members will have easy access to career information within selected fields of interest. Career Cruising will provide online career exploration tools that lead to recommending classwork and hands-on learning opportunities while guiding members along a path tailored to their abilities. With its ccInspire platform, Career Cruising connects individuals to career mentors and employers in their community

The partnership with AgCareers.com will allow members to search for career opportunities within their particular field of study or within a selected geographic area through a very robust job board. By including these tools on AgCN, FFA members will have a convenient home for career exploration. The partnership will continue to provide members with job placement access throughout their postsecondary educations as they pursue internship and career options.

“These partnerships will be wonderful tools for our membership, and they will continue to help young people achieve career success even after they’ve taken off their blue jacket,” said Dwight Armstrong, CEO of the National FFA Organization. “With the help of these great companies, we will provide students with a clear pathway from talent to career.”

The partnerships will allow AgCN to intuitively identify career paths for our students based on their interests, accomplishments and achievements. These enhancements to the AgCN will be available to students beginning in the fall of 2012. In addition, graduating FFA members will be offered a free, five-year associate membership in the National FFA Alumni Association, which will allow for continued network access beyond their years of active FFA membership.



Farm Service Agency County Committee Nomination Period Begins June 15


Agriculture Secretary Tom Vilsack announced today that the nomination period for local Farm Service Agency (FSA) county committees begins on Friday, June 15.

"I urge all farmers and ranchers to participate in this year's county committee elections by nominating candidates by the August 1 deadline," said Vilsack. "County committees are a vital link between the farm community and the U.S. Department of Agriculture and provide a voice to landowners, farmers and ranchers so that they have an opportunity for their opinions and ideas to be heard.”

To be eligible to serve on an FSA county committee, a person must participate or cooperate in a program administered by FSA, be eligible to vote in a county committee election and reside in the local administrative area in which the person is a candidate.

Farmers and ranchers may nominate themselves or others, and organizations representing minorities and women also may nominate candidates. To become a candidate, an eligible individual must sign the nomination form, FSA-669A. The form and other information about FSA county committee elections are available online at http://www.fsa.usda.gov/elections. Nomination forms for the 2012 election must be postmarked or received in the local USDA Service Center by close of business on Aug. 1, 2012. Elections will take place this fall.

While FSA county committees do not approve or deny farm operating loans, they make decisions on disaster and conservation programs, emergency programs, commodity price support loan programs and other agricultural issues. Members serve three-year terms. Nationwide, there are about 7,700 farmers and ranchers serving on FSA county committees. Committees consist of three to 11 members that are elected by eligible producers.

FSA will mail ballots to eligible voters beginning Nov. 5. The voted ballots are due back to the local county office either via mail or in person by Dec. 3. Newly elected committee members and alternates take office on Jan. 1, 2013.



Israeli-American Scientist Wins 26th Annual World Food Prize


Secretary of State Hillary Rodham Clinton delivered the keynote address at a ceremony at the U.S. Department of State on June 12, where Daniel Hillel, a scientist born in the United States and raised in Israel, was named winner of the 2012 World Food Prize.

Hillel’s work to bring water to crops in dry-land regions revolutionized food production, first in the Middle East and then around the world over the past five decades.  Hillel developed what is called “micro-irrigation,” which reduces the amount of water needed to irrigate crops while improving agricultural yields.

Secretary Clinton said, “Today, farmers using micro-irrigation produce high-yield, nutritious crops on more than 6 million hectares worldwide.”  Hillel’s work is in step with her goals, she said, noting that the department’s Feed the Future initiative focuses on “spurring innovation and finding ways to do more with less and deliver results to people in need.”

World Food Prize Foundation President and former U.S. Ambassador to Cambodia Kenneth M. Quinn, in announcing the winner, emphasized not only Hillel’s scientific achievement but also his dedication to working across borders to increase food. “Confronting hunger can bring diverse people together across even the broadest political, ethnic, religious or diplomatic differences," he said. 

Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs Kerri-Ann Jones hosted the ceremony, which also included Jonathan Shrier, the State Department’s acting special representative for global food security.

This is the 26th anniversary of the World Food Prize, which includes an award of $250,000.  More than 4,000 organizations worldwide are invited to nominate candidates.  Hillel’s nomination contained support from Jordan, Egypt and the United Arab Emirates.

The award will be formally presented to Hillel, a citizen of the U.S. and Israel who splits his time between the two countries, at the Iowa State Capitol in Des Moines, on October 18, 2012. 



Vilsack: Farm Exports Are Creating Jobs and Growing the Rural Economy


Agriculture Secretary Tom Vilsack today met with business and community leaders to discuss how continuing demand for American food and agricultural products abroad has led to the three best consecutive years for U.S. farm exports in our nation's history. Vilsack said the success of American agriculture is a positive economic story that is creating jobs in rural America and benefitting people around the world. Vilsack also highlighted a report released this week by the White House Rural Council and the U.S. Department of Agriculture which notes progress that has been made in the agricultural economy and details steps the Obama Administration has taken to help strengthen the farm economy and support jobs in rural America.

"In 2010, President Obama committed to doubling U.S. exports in five years, and just two years later, we are on pace to meet that goal," said Vilsack. "Meanwhile, people around the world continue to demand U.S. food and agricultural products, boosting American businesses and supporting our rural communities. To ensure these successes continue, USDA has aggressively worked to expand export opportunities and reduce barriers to trade. Less restrictions abroad, stronger trade deals for U.S. agriculture, and greater export assistance for U.S. businesses supports more than 1 million Americans jobs in industries from packing and shipping, to food processing, to transportation. This is an American-made success story worth sharing with our friends, family and neighbors."

Speaking to business leaders in Iowa, one of the nation's most productive agricultural economies, Vilsack pointed to the state's low unemployment rate of 5.1 percent as proof of agriculture's success story. Last year, Iowa exported a record $7 billion in agricultural products, which supported nearly 60,000 jobs on and off the farm. Thus far in 2012, the state's farm exports show a 15-percent gain over last year's record total.

Vilsack also highlighted a joint report released this week by the White House Rural Council and USDA, which notes how the President's National Export Initiative has opened new markets for U.S. agricultural products and services and contributed to a historic level of agricultural exports. Other highlights from the report include:

    Innovation: Innovation in U.S. agriculture has kept America's farms among the most productive in the world. U.S. farm sector income reached a nominal record of $98.1 billion in 2011. Adjusting for general inflation, real farm income in 2011 recorded its 3rd highest level in the last 50 years.

    Clean Energy: The Administration has pursued polices that promote domestic energy alternatives like biofuels, bioenergy, and wind power to provide new opportunities for farmers, ranchers, and forest managers. Pursuit of an all-of-the-above clean energy and energy efficiency strategy saved Americans a projected 6.5 billion kWh - enough energy to power over 590,000 homes for a year - and nearly doubled the amount of installed wind energy generation in the U.S. over the past three years from about 25,000 MW in 2008 to 47,000 MW in 2011.

    New Industries: The Administration has supported new industry diversification within the agricultural economy. The retail value of the organic industry grew to $31.4 billion in 2011, up from $21.1 billion in 2008. The number of operations certified organic grew by 1,109 - or more than 6% - between 2009 and 2011.

    Community Investment: The rural economy has been strengthened by investments in over 6,250 new community facilities. Additionally, over the last three years, 12,000 USDA grants and loans have been issued to assist over 50,000 rural small businesses.

Just a few weeks ago, USDA forecast 2012 farm exports to reach the second highest level on record, after 2011, making the past three years the strongest collective performance in our nation's history. Today, only 1 percent of U.S. companies export, and yet 95 percent of the world's consumers live outside the borders of the United States, creating significant opportunities for U.S. food and agriculture.

Responding to that demand since 2009, U.S. farmers and ranchers have delivered three of the four highest levels of U.S. agricultural exports in American history. In fiscal year 2012, the latest forecast sees $134.5 billion in U.S. farm exports, the second highest level ever and $3.5 billion greater than the previous forecast. And Vilsack said he expects new trade agreements with South Korea, Panama and the European Union to deliver even greater returns for U.S. businesses.

Vilsack said USDA is committed to expanding export opportunities for all producers. When asked about outcomes of USDA's March trade mission to China—the department's largest trade mission to date—he highlighted that the delegation included 39 U.S. companies, representatives from six state departments of agriculture, and achieved nearly $2 million in immediate sales.

In terms of new agreements beyond South Korea and Columbia, Vilsack pointed out a recent, major partnership with the potential for substantial returns: the United States and European Union equivalency arrangement for organic agricultural goods. The U.S. and EU are the world's largest producers of organics, said Vilsack, and estimates show the market for U.S. organics sales to the EU could grow substantially within the first few years of this arrangement. Moreover, the arrangement will provide expanded market access, reduce duplicative requirements and reduce certification costs while protecting organic integrity.



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