Heineman's Tax Reform Bills Move to Hearings
(from the NE Soybean Assoc)
The Legislature's Revenue Committee has announced the hearing dates on Governor Heineman's tax reform bills. LB 405, introduced by Sen. Beau McCoy, will be heard on Feb. 6, and LB 406, also introduced by Sen. McCoy will be heard on Feb. 7. Both bills will increase taxes on farmers and ranchers by imposing the state sales tax (5.5%) on seed, energy and fuel, chemicals and fertilizers. LB 405 would also impose the sales tax on agricultural machinery and equipment, semen and artificial insemination services and chemicals used in livestock production. In total, taxes on farmers and ranchers could increase somewhere between $200-$300 million.
DETAILS:
LB 405 proposes to completely eliminate both individual and corporate income taxes at the state level and repeal approximately $2.4 billion worth in sales tax exemptions to help offset the revenue lost from eliminating income taxes. Exemptions being targeted in this bill that are beneficial to agriculture include the sales tax exemptions on water used in irrigation and manufacturing ($824,384), agricultural machinery ($67 million), seed for commercial use ($42 million), agricultural chemicals ($87 million), and energy used in agricultural operations ($82 million). LB 406 represents a scaled-down version of LB 405 in that it proposes to reduce state income taxes by $395 million and remove an equivalent amount of sales tax exemptions to offset. Unfortunately, the agricultural inputs of seed, chemicals, and energy remain disproportionately targeted under this proposal, accounting for over 50% of the value of sales tax exemptions at risk under this bill. Other sales tax exemptions that are being targeted in one or both of the bills include manufacturing machinery, energy used in industry, college/hospital room rentals, railroad rolling stock, medical equipment, prescription drugs, ingredient/component parts ($1.4 billion), molds, dyes and containers.
REVENUE Committee members include:
Hadley, Galen Dist. 37 (402) 471-2726 Kearney
Hansen, Tom Dist. 42 (402) 471-2729 North Platte
Harr, Burke J. Dist. 8 (402) 471-2722 Omaha
Janssen, Charlie Dist. 15 (402) 471-2625 Fremont
McCoy, Beau Dist. 39 (402) 471-2885 Omaha
Pirsch, Pete Dist. 4 (402) 471-2621 Omaha
Schumacher, Paul Dist. 22 (402) 471-2715 Columbus
Sullivan, Kate Dist. 41 (402) 471-2631 Cedar Rapids
NEBRASKA CATTLE INVENTORY DOWN 2 PERCENT
All cattle and calves on hand January 1, 2013, in Nebraska totaled 6.30 million head, down 2 percent from a year ago according to USDA’s National Agricultural Statistics Service, Nebraska Field Office. All cows on hand January 1, at 1.86 million head, were 4 percent below last year. The 2012 calf crop was estimated at 1.72 million head, up 2 percent from 2011. Cattle and calves on feed for slaughter in all Nebraska feedlots on January 1 totaled 2.55 million head, down 4 percent from last year.
IOWA:
All cattle and calves in Iowa as of January 1, 2013 totaled 3.85 million head, according to the latest USDA, National Agricultural Statistics Service – Cattle report. This estimate is down 50,000 from January 1, 2012. Beef cows, at 925,000 head, were 3 percent above last year. Milk cows, at 205,000 were unchanged from last year.
All heifers 500 pounds and over, at 950,000 head, were up 3 percent from last year. Heifers for beef cow replacement were up 7 percent to 150,000 head; heifers for milk cow replacement at 120,000 head were down 25 percent from the previous year; and all other heifers were up 10 percent to 680,000 head.
Steers weighing 500 pounds and over were down 4 percent from last year at 1,250,000 head. Bulls weighing 500 pounds and over were unchanged from a year ago at 60,000 head. Calves under 500 pounds on January 1, 2013 totaled 460,000 head, down 12 percent from last year.
The 2012 calf crop was estimated at 1.05 million head, equal to the 2011 calf crop. Cattle and calves on feed for slaughter in all feedlots on January 1, 2013 was 1,280,000 head, down 2 percent from one year ago.
USDA January 1 Cattle Inventory Down 2 Percent
All cattle and calves in the United States as of January 1, 2013 totaled 89.3 million head, 2 percent below the 90.8 million on January 1, 2012. This is the lowest January 1 inventory of all cattle and calves since the 88.1 million on hand in 1952.
All cows and heifers that have calved, at 38.5 million, were down 2 percent from the 39.4 million on January 1, 2012. This is the lowest January 1 inventory of all cows and heifers that have calved since the 36.8 million head in 1941.
• Beef cows, at 29.3 million, were down 3 percent from January 1, 2012.
• Milk cows, at 9.2 million, unchanged from January 1, 2012.
Other class estimates on January 1, 2013 and the change from January 1, 2012, are as follows:
• All heifers 500 pounds and over, 19.1 million, down 1 percent.
• Beef replacement heifers, 5.4 million, up 2 percent.
• Milk replacement heifers, 4.6 million, down 2 percent.
• Other heifers, 9.2 million, down 3 percent.
• Steers weighing 500 pounds and over, 15.8 million, unchanged.
• Bulls weighing 500 pounds and over, 2.1 million, down 2 percent.
• Calves under 500 pounds, 13.8 million, down 2 percent.
• Cattle and calves on feed for slaughter in all feedlots, 13.4 million, down 5 percent.
• The combined total of calves under 500 pounds, and other heifers and steers over 500 pounds outside of feedlots was 25.5 million, up 1 percent.
Calf Crop Down 3 Percent
The 2012 calf crop was estimated at 34.3 million head, down 3 percent from 2011. This is the smallest calf crop since the 33.7 million born during 1949. Calves born during the first half of 2012 are estimated at 25.0 million, down 3 percent from 2011.
All cattle and calves as of Jan 1, 2013 (1,000 head, % of previous year)
Iowa ..........: 3,850.0 99%
Kansas ......: 5,850.0 96%
Nebraska ...: 6,300.0 98%
2012 Calf Crop - (1,000 head, % of previous year)
Iowa ...............: 1,050.0 100%
Kansas ..........: 1,250.0 88%
Nebraska .......: 1,720.0 102%
Nebraska LEAD 31 Travels to Hong Kong, Vietnam and Taiwan
Twenty nine Nebraska LEAD 31 Fellows recently returned from the 2013 International Study/Travel Seminar to Hong Kong, Vietnam and Taiwan.
"Our international study is designed to provide first-hand appreciation and understanding of our international community and the potential for people of all nations to work together," said Terry Hejny, Nebraska LEAD Program director and group leader.
During the Jan. 12-24 seminar, LEAD Fellows attended briefings at the U.S. Consulate offices in Hanoi and Ho Chi Minh City and met with American business, agricultural trade and commodity groups. Additionally, LEAD Fellows were able to meet with officials at the Hanoi University of Agriculture, the Vietnam Farmers Union and the Taiwan Council of Agriculture, Executive Yuan.
"The people-to-people encounters provided the members of Nebraska LEAD Group 31 an opportunity to view characteristics, conditions and trends of Hong Kong, Vietnam and Taiwan and determine relationships to issues and situations in our country," Hejny said. "Through this experience participants develop techniques in identifying comparisons and contrasts of the countries we recently studied in areas such as politics, economics, religion, culture and history as well as technology, trade, food, art and philosophy."
LEAD 31 Fellows that participated in alphabetical order are: Sondra Anderson, Harrisburg; David Bray, Omaha; Brandon Carter, Gothenburg; Brock Elsen, Sumner; Josh Fries, Imperial; Jeff Henn, Omaha; Chandra Horky, Sargent; Jerad Hutchens, Lincoln; Tom Jasnoch, Ogallala; Tony Johanson, Oakland; Suzanna Klaasmeyer, Hershey; Sara Lemburg, Ewing; Matt Miller, Mitchell; Sean Minahan, Plattsmouth; Gerri L. Monahan, Lincoln; Brian Mumm, Geneva; Nathan Oligmueller, Alliance; Tracy Olson, North Platte; David Pandorf, Callaway; Todd Reed, Lincoln; Jeremy Reineke, Gretna; Ryan Reuter, Minatare; Kurt Rewinkel, Wakefield; Joe Richeson, Gothenburg; Jim Schneider, Aurora; Rochelle Schoneberg, Sutton; Jeff Stuehmer, Lincoln; Desiree Wineland, Cambridge; and Michael Wisnieski, Omaha.
The Nebraska LEAD Program includes men and women, currently active in production agriculture and agribusiness and is a two-year leadership development program under the direction of the Nebraska Agricultural Leadership Council, in cooperation with the University of Nebraska-Lincoln's Institute of Agriculture and Natural Resources.
For more information, or to request an application for Nebraska LEAD 33, contact the Nebraska LEAD Program, 318 Biochemistry Hall, University of Nebraska-Lincoln, Lincoln, NE 68583-0763, telephone 402-472-6810 or email Shana at sgerdes2@unl.edu. The application deadline is June 15.
Corn Cobs Eyed for Bioenergy Production
Corn crop residues are often left on harvested fields to protect soil quality, but they could become an important raw material in cellulosic ethanol production. U.S. Department of Agriculture (USDA) research indicates that soil quality would not decline if post-harvest corn cob residues were removed from fields.
This work, led by Agricultural Research Service (ARS) soil scientist Brian Wienhold, supports the USDA priority of developing new sources of bioenergy. ARS is USDA's chief intramural scientific research agency.
Wienhold, with the ARS Agroecosystem Management Research Unit in Lincoln, Neb., led studies that compared runoff rates and sediment loss from no-till corn fields where postharvest crop residues were either removed or retained. The scientists also removed cobs from half of the test plots that were protected by the residues.
After the test plots were established, the scientists generated two simulated rainfall events. The first occurred when the fields were dry, and the next occurred 24 hours later when the soils were almost completely saturated.
During the first event, on plots where residue was removed, runoff began around 200 seconds after the "rain" began. Runoff from plots protected by residues didn't start until around 240 seconds after it started to "rain."
Runoff from the residue-free plots contained 30 percent more sediment than runoff from all the residue-protected plots. But the presence or absence of cobs on the residue-protected plots did not significantly affect sediment loss rates.
Wienhold's team concluded that even though cob residues did slightly delay the onset of runoff, sediment loss rates were not significantly affected by the presence or absence of the cobs. The results indicated that the cobs could be removed from other residue and used for bioenergy feedstock without significantly interfering with the role of crop residues in protecting soils.
In a related study, Wienhold examined how the removal of cob residues affected soil nutrient levels. Over the course of a year, his sampling indicated that cobs were a source of soil potassium, but that they weren't a significant source of any other plant nutrients.
Results from this work have been published in Agronomy Journal. Read more about the research in the January 2013 issue of Agricultural Research magazine.
Total Sheep and Lamb Inventory Down 1 Percent
All sheep and lamb inventory in the United States on January 1, 2013, totaled 5.34 million head, down 1 percent from 2012. Breeding sheep inventory decreased to 3.98 million head on January 1, 2013, down 1 percent from 4.0 million head on January 1, 2012. Ewes one year old and older, at 3.14 million head, were 1 percent below last year. Market sheep and lambs on January 1, 2013, totaled 1.36 million head, down 1 percent from January 1, 2012. Market lambs comprised 94 percent of the total market inventory. Twenty-three percent were lambs under 65 pounds, 12 percent were 65 - 84 pounds, 22 percent were 85 - 105 pounds, and 37 percent were over 105 pounds. Market sheep comprised the remaining 6 percent of total market inventory.
The 2012 lamb crop of 3.46 million head, was down 2 percent from 2011. The 2012 lambing rate was 109 lambs per 100 ewes one year old and older on January 1, 2012, unchanged from 2011.
Shorn wool production in the United States during 2012 was 28.5 million pounds, down 3 percent from 2011. Sheep and lambs shorn totaled 3.93 million head, also down 2 percent from 2011. The average price paid for wool sold in 2012 was $1.53 per pound for a total value of 43.6 million dollars, down 11 percent from 48.9 million dollars in 2011.
Sheep death loss during 2012 totaled 229 thousand head, a decrease of 5 percent from 2011. Lamb death loss decreased 4 percent from 380 thousand head in 2011 to 365 thousand head in 2012.
Total Goat and Kid Inventory Down 2 Percent
All goat inventory in the United States on January 1, 2013, totaled 2.81 million head, down 2 percent from 2012. Breeding goat inventory totaled 2.32 million head, down 2 percent from 2012. Does one year old and older, at 1.73 million head, were 2 percent below last year's number. Market goats and kids totaled 490 thousand head, up one percent from a year ago.
Kid crop for 2012 totaled 1.79 million head for all goats, down 5 percent from 2011.
Meat and all other goats totaled 2.32 million head on January 1, 2013, down 2 percent from 2012. Milk goat inventory was 360 thousand head, unchanged from January 1, 2012, while Angora goats were down 7 percent, totaling 136 thousand head.
Mohair production in the United States during 2012 was 770 thousand pounds. Goats and kids clipped totaled 136 thousand head. Average weight per clip was 5.7 pounds. Mohair price was $3.89 per pound with a value of 2.99 million dollars.
IOWA:
All sheep and lambs inventory in Iowa totaled 175,000 head, down 10 percent from last year according to the latest USDA, National Agricultural Statistics Service – Sheep and Goats report. Total breeding stock, at 128,000 head, is approximately 10 percent lower than a year ago. Compared to last year, market sheep and lambs decreased 10 percent to 47,000 head, and the lamb crop decreased 3 percent to 150,000.
Sheep and Lamb Inventory by Class
-----------------------------------------------------------------------------------------------------------
: All sheep and lambs : Total breeding : Total market
State :---------------------------------------------------------------------------------------
: : : 2013 as: : : :
: 2012 : 2013 : percent : 2012 : 2013 : 2012 : 2013
: : : of 2012: : : :
----------------------------------------------------------------------------------------------------------
:-- 1,000 head -- percent ----------- 1,000 head ----------
Iowa ............: 195.0 175.0 90 143.0 128.0 : 52.0 47.0
Kansas ........: 70.0 65.0 93 44.0 42.0 : 26.0 23.0
Nebraska .....: 77.0 80.0 104 62.0 66.0 : 15.0 14.0
2012 Lamb Crop (1,000 head, % of previous year)
Iowa ..............: 150.0 97%
Kansas .........: 43.0 91%
Nebraska ......: 73.0 104%
Refuge Compliance Report Shows Increased Compliance in 2012
The National Corn Growers Association is pleased to announce that the enhanced Compliance Assurance Program, which includes on-farm refuge assessments, an online survey and IRM education and awareness, is seeing strong success and an increase in the number of growers planting their corn refuge.
The CAP is designed to improve compliance with Insect Resistance Management requirements. The Agricultural Biotechnology Stewardship Technical Committee, a consortium of Bt corn registrants, submits an annual CAP report to the U.S. Environmental Protection Agency describing industry-coordinated compliance assurance efforts for Bt traits.
In 2011, ABSTC launched a new IRM on-farm assessment program that focuses more assessments on growers who may not have purchased sufficient refuge seed according to their purchase records.
“The on-farm assessment process has proven to be an effective mechanism to identify Bt corn growers who are not following refuge requirements and provide assistance so that they can achieve compliance. The vast majority of growers found out of compliance in 2011 were found to be complying with the IRM requirements during the 2012 season,” said Mike Smith, ABSTC IRM subcommittee co-chairman.
In addition to on-farm assessments, an anonymous IRM grower survey was conducted. Highlights of the survey indicate a decrease in the percentage of growers not planting any refuge acres and strong adoption of integrated refuge products, which include Bt and refuge seed interspersed in a single bag or seed box.
The CAP continues to be effective for all Bt corn products with structured refuge requirements
In 2012, the majority of growers surveyed planted the required refuge size on their farms and the majority of growers surveyed planted a refuge within the required distance for all of their Bt corn fields. Furthermore, the survey indicates that the percentage of growers not planting any refuge acres has declined from 16 percent in 2011 to less than 10 percent in 2012.
“We are pleased to see that the number of corn growers not planting a refuge declined last season,” said Nick Storer, ABSTC steering team member. “We will continue to focus our education efforts in areas of highest risk of insect pest resistance development in the Corn Belt, as well as the cotton growing area, where IRM continues to be important.”
Adoption of integrated refuge products result in automatic compliance in the Corn Belt
The 2012 survey was the first year integrated refuge products were included, and 50 percent of growers indicated they planted an integrated refuge product on their farm. ABSTC projects that the adoption of integrated products will continue to increase, contributing to the overall increase in compliance, which helps preserve Bt corn technology durability.
Roger Zylstra, a grower from Lynnville, Iowa, planted integrated refuge products on his farm last season.
“Planting integrated refuge products is a very convenient way to manage my corn acres,” said Zylstra. “It’s simple, saves time, is the responsible thing to do for Bt trait durability, and eliminates any refuge compliance questions giving me peace of mind.”
“We’re pleased to see the strong adoption of integrated refuge products by growers coupled with the overall decline in growers not planting refuge acres,” said Jim Zimmerman, Chairman of the NCGA Trade Policy and Biotechnology Action Team. “The vast majority of corn growers have always followed refuge requirements to help protect the efficacy of this important technology, but all growers must follow these requirements to help preserve the long-term value of this technology.”
The ABSTC continues to promote education programs and strategies to preserve the efficacy of Bt technology. As part of these efforts, all seed registrants have incorporated prominent graphics illustrating the required refuge size of the seed product on the seed bag or bag tag. In addition, the ABSTC continues to partner with NCGA to ensure that NCGA’s membership and networks are fully informed of refuge requirements and the CAP. One collaborative example is the NCGA IRM calculator. Farmers can access the IRM calculator via computer, tablet or a smart phone by simply logging on to www.irmcalculator.com.
Activities under the enhanced Compliance Assurance Program continue to promote refuge compliance and help preserve the Bt corn technology. Industry and grower commitment to Bt corn product stewardship is further demonstrated through the implementation of the enhanced CAP and rapid adoption of integrated refuge products in the Corn Belt. With the introduction of integrated refuge products, growers have an additional choice in adhering to refuge requirements.
Informa Sees Brazil Soy Crop at 84 Million Metric Tons
Private analytical firm Informa Economics on Friday raised its outlook for Brazil's 2013 soybean and corn production, traders said, but dry conditions led to lowered forecasts for corn and soybean production in Argentina.
Informa, a closely watched crop forecaster, pegged Brazil soybean production at 84 million metric tons, up 1.1 million metric tons from its January estimate, traders said. The firm projected Brazil corn production at 70.3 million metric tons, up 4.1 million metric tons from its previous forecast.
Informa lowered its forecasts for Argentina corn and soybean production. Informa pegged Argentina soybean output at 54.5 million metric tons, down 3.9 million from its January forecast, and it lowered its Argentina corn forecast by two million metric tons to 25 million.
In Argentina, Informa noted, dry conditions have lowered yield potential of both corn and soybeans, and further losses are likely if the dry situation continues into February, traders said.
U.S. Department of Agriculture in its Jan. 11 supply-and-demand report estimated Brazil soy production at 82.5 million metric tons and Argentina soy output at 54 million. USDA pegged Brazil corn production at 71 million metric tons and Argentina's corn crop at 28 million.
Informa estimated Argentina's 2013 wheat production at 9.5 million metric tons, which is unchanged from Informa's previous forecast and, if realized, would be 6.5 million metric tons below 2011.
Informa also issued estimates for U.S. cotton, forecasting for 2012 production at 17.1 million 480-pound bales, 85,000 larger than USDA's January forecast and 1.5 million larger than last season's weather-reduced total.
USDA will release its latest estimates on U.S. and world supply and demand Feb. 8.
Russia Proposes Suspending Grain Import Duty Through Aug 1
Russia's economy ministry has proposed suspending import duties on grain until Aug. 1 in an effort to help bolster the supply used in grain intervention sales that have tried to stabilize domestic prices.
The government said in a statement on its website that First Deputy Prime Minister Arkady Dvorkovich--who oversees agricultural issues--had commissioned a study "in the near future" on how best to implement such a move and coordinate decision-making.
The agriculture ministry has sold more than 1.5 million tons of intervention grain worth about 13 billion rubles ($434 million) dating back to late October, after widespread drought caused domestic prices to shoot up.
The ministry said Jan. 24 that it was planning to sell nearly 3 million metric tons of grain at intervention tenders between now and the end of the current marketing year June 30.
The ministry said at this time the grain intervention reserve held 3.33 million tons of grain.
USDA Preserves $4 Billion in Agricultural Exports in 2012 by Knocking Down Barriers to Trade
Agriculture Secretary Tom Vilsack today highlighted how the U.S. Department of Agriculture (USDA) resolved dozens of export issues in 2012, freeing up an estimated $4 billion in U.S. agricultural and forestry exports and protecting roughly 30,000 American jobs in the process. The work is highlighted on Performance.gov, a resource for demonstrating how the Obama Administration is improving performance and accountability for the American people and businesses.
"As consumers around the world demand high-quality, American-grown products, USDA staff are monitoring more than 160 markets to ensure an open system of trade, free from unwarranted and unjustified barriers," said Vilsack. "Since 2009, USDA has acted to remove hundreds of unfair barriers to trade for American companies and is providing businesses with the resources they need to reach new markets. These efforts have resulted in the most successful period in the history for American agriculture and a boon for America's rural economies and agriculture-related businesses."
Over the past year, USDA has aggressively worked to eliminate barriers, open new markets, secure the release of U.S. shipments detained at foreign ports, and ensure the safe movement of agricultural products in a manner consistent with science and international standards. Overall, a highly-dedicated group of USDA Foreign Service officers, animal and plant health experts, and analysts monitor 162 markets around the world, ensuring a level playing field for U.S. businesses and products. USDA works in partnership with the Office of the U.S. Trade Representative (USTR) and other federal offices and agencies.
Currently, the American brand of agriculture is surging in popularity worldwide, while U.S. agricultural exports support more than 1 million jobs in communities across the country. Fiscal years 2009 through 2012 generated more than $478 billion in agricultural exports, and 2013 agricultural exports remain on track to set new records. Overall, America's agricultural sector is playing a key role in helping to achieve President Obama's goal under the National Export Initiative of doubling exports by the end of 2014.
This success builds on USDA's efforts to break down barriers to trade and expand access for U.S. goods around the world. Earlier this week, USDA announced that the Government of Japan—the fourth largest agricultural export market for the United States—agreed to expand access for U.S. beef. Under these new terms, which enter into effect on February 1, 2013, Japan will now permit the import of beef from cattle less than 30 months of age, compared to the previous limit of 20 months, among other steps. It is estimated that these important changes will result in hundreds of millions of dollars in exports of U.S. beef to Japan in the coming years. This agreement also goes a long way toward normalizing trade with Japan by addressing long-standing restrictions that Japan introduced in response to bovine spongiform encephalopathy (BSE).
As American businesses look to reach the 95 percent of consumers outside of U.S. borders, USDA is providing support and service. For example, in 2012, USDA has been able to help conduct more than 110 trade shows around the world to help more than 1,000 U.S. companies make more than $500 million in on-site sales. The majority of these were small and medium-sized businesses. While strong exports benefit farms and rural communities, agricultural trade is also a building block for a strong national economy.
Along with their federal partners, USDA's Animal and Plant Health Inspection Service (APHIS) works to protect the health and value of American agriculture and natural resources in the international environment. Last year, APHIS successfully negotiated and resolved 150 animal and plant health issues involving U.S. agricultural exports. Examples include:
- Spearheaded a 6-month pilot program with China's animal and plant health authority which established the resumption of log exports from Virginia and South Carolina, resulting in more than $1.5 million in U.S. hardwood log exports to China from those States. The pilot program was recently extended by China. The pilot program signals renewed Chinese confidence in Virginia and South Carolina forestry exports. The United States exported more than $7.7 billion in forestry products in 2011, supporting more than 65,000 jobs. During the first eleven months of 2012, U.S. log exports to China from all states reached nearly $730 million. Nearly 25 percent of those exports landed in China, the second largest market for U.S. timber. Seaports in Virginia and South Carolina handled more than half-a-billion-dollars in U.S. forestry exports in 2011.
- Worked with Mexican officials to spur U.S. table eggs exports to Mexico valued at $45 million per year.
- Secured Japanese market access for poultry and poultry products from New York, Ohio and South Dakota. In 2011, U.S. poultry exports to Japan totaled $88 million.
- Supported the shipment of U.S. cattle to new markets in 2012 by engaging foreign counterparts in preparation for exports and approving seven temporary export inspection facilities to supplement the agency's permanent export facilities, reducing the distance cattle traveled before export and helping exporters meet shipping deadlines. Turkish and Russian purchases alone during fiscal year 2012 were valued at roughly $300 million.
- Secured the release of 324 shipments of U.S. agricultural products detained at foreign ports, valued at more than $41 million. For example, APHIS recently secured the release of seven grain shipments valued at $1.8 million from the port of Haiphong, Vietnam, and the agency continues to work with Vietnamese officials and the U.S. grain industry on a permanent solution that will keep exports moving efficiently to that market.
There are approximately 170 Foreign Service officers in USDA's Foreign Agricultural Service (FAS), staffing 98 offices covering 162 countries. U.S. farmers, ranchers, trade associations and private companies depend on FAS staff to guide them through export of their products. FAS provides reports on hot market prospects and offers expertise when trade barriers arise. Over the past year, FAS has helped to knock down hundreds of barriers to trade. Examples include:
- Negotiated the release of hundreds of detained shipments in dozens of countries, valued at well over $60 million, and ranging from soybean meal in Latvia, to white zinfandel in the EU, rice bran pellets in Norway, Massachusetts scallops in Spain, and U.S. meat and poultry products in Taiwan.
- Began implementing trade agreements with South Korea, Colombia and Panama, ensuring duty free access for a wide variety of U.S. food and farm products expected to boost U.S. agricultural exports by more than $2.3 billion per year when fully implemented, and support nearly 20,000 domestic jobs in the process.
- Negotiated expanded access for U.S. beef to the United Arab Emirates and El Salvador. In 2012, U.S. beef and beef product exports to United Arab Emirates and El Salvador reached $47 million.
- Engaged with China on a memorandum of understanding on soybean trade that prevented disruptions to over $12 billion of U.S. exports. Maintained market access for U.S. dairy—valued at over $432 million in 2012—by coordinating a draft dairy export certificate with the government of China.
- Spearheaded negotiations with Indonesia to exempt countries with food safety recognition, including the United States, from new restrictions on a variety of imported fruit and vegetables. U.S. fresh fruit exports to Indonesia were $110 million in 2012.
- Helped to negotiate the organic equivalence arrangement with the European Union. This partnership between the two largest organic-producers in the world will establish a strong foundation from which to promote organic agriculture, benefiting the growing organic industry and supporting jobs and businesses on a global scale.
- Engaged with India on a measure likely to have halted U.S. apple and pear exports valued at nearly $110 million annually.
- Expanded market access for U.S. potatoes in Asia, and positioned U.S exporters to take advantage of the U.S.-Korea Trade Agreement that permits duty-free entry of up to 3,000 metric tons of U.S. potatoes each year. Last year, the United States exported $7 million of fresh potatoes to Korea.
- Worked with Mexico to remove a 16 percent tax on dehydrated U.S. cranberries that had been erroneously applied for two months.
The Obama Administration, with Agriculture Secretary Vilsack's leadership, has aggressively worked to expand export opportunities and reduce barriers to trade, helping to push agricultural exports to record levels. U.S. agriculture is currently experiencing its best period in history thanks to the productivity, resiliency, and resourcefulness of our producers and agribusinesses. Today, net farm income is at record levels while debt has been cut in half since the 1980s. Overall, American agriculture supports 1 in 12 jobs in the United States and provides American consumers with 83 percent of the food we consume, while maintaining affordability and choice. Strong agricultural exports contribute to a positive U.S. trade balance, create jobs, boost economic growth and support President Obama's National Export Initiative goal of doubling all U.S. exports by the end of 2014.
USDA Announces Commodity Credit Corporation Lending Rates for February 2013
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for February 2013. The CCC borrowing rate-based charge for February 2013 is 0.125 percent, unchanged from 0.125 in January 2013. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during February 2013 is 1.125 percent, unchanged from 1.125 in February 2013.
Interest rates for Farm Storage Facility Loans approved for February 2013 are as follows, 1.250 percent with seven-year loan terms, up from 1.125 in January 2013; 1.875 percent with 10-year loan terms, up from 1.625 in January 2013 and; 2.125 percent with 12-year loan terms, up from 1.875 percent in January 2013.
Tyson Foods Posts Strong 1Q Earnings
Tyson Foods Inc.'s (TSN) fiscal first-quarter earnings jumped 11% as the meat processor's results from chicken and beef sales improved on stronger prices and margins.
Shares rose 3.1% premarket to $22.80 after Tyson beat earnings expectations. As of Thursday's close, the stock was up 29% over the past three months.
Tyson and other food companies have been challenged by rising feed costs stemming from a drought in the Midwest. The company also has faced weak demand for beef and pork products as consumers grapple with rising food costs and as a sluggish economy has shoppers keeping a close watch on their budgets.
In the chicken sector, in addition to high grain costs, meatpackers such as Tyson also have grappled with an oversupplied market.
Tyson has been cutting its costs and debt and striving to expand sales in emerging markets in an effort to mitigate the impacts of high commodities costs.
For the period ended Dec. 29, Tyson reported a profit of $173 million, or 48 cents a share, up from $156 million, or 42 cents a share, a year ago. Sales edged up 0.9% to $8.4 billion.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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