Wednesday March 18 Ag News

Celebrating Nebraska Agriculture
By Governor Pete Ricketts

All across America, producers, consumers, and educators are participating in National Ag Week from March 16th-21st.  Here in Nebraska, the celebration recognizes many faces within our number one industry. Whether it’s a farm family’s decades-long success or the creativity of future ag leaders, those who contribute to agriculture in Nebraska come from many backgrounds.

During National Ag Week, I’m working with the Nebraska Department of Agriculture to promote the ag industry, which contributes up to $23 billion dollars annually to Nebraska’s economy. On Monday, I visited Omaha, Broken Bow, North Platte, and Seward to recognize the success of our state’s many agribusinesses. Nebraska’s Ag Director Greg Ibach, Nebraska Farm Bureau President Steve Nelson, and chair of the Legislature’s Agriculture Committee, Senator Jerry Johnson, joined me on the tour.     

This month, I have teamed up with the Nebraska Department of Agriculture to publish its annual magazine, “Nebraska Agriculture and You.” This issue includes success stories from Nebraska’s poultry, honey, popcorn, and potato businesses.  The magazine’s 2015 “featured family” highlights a dairy farm in northeast Nebraska, which spans 44 years and 2 generations.  Mike and Joy Malena share ownership of their operation, near Leigh, with their 3 grown children and their children’s spouses. The family produces and sells 120,000 pounds of milk, per day, and also farms more than 2,000 acres of corn and alfalfa. The Malena Family’s story exemplifies the pride, loyalty, and hard work many Nebraskans can relate to when sharing the success of an agribusiness with a new generation. Readers may request magazines by calling 800-422-6692. A digital copy of the magazine is also available on the NE Dept. of Ag website, at www.nda.nebraska.gov.

National Ag Week also celebrates some of our state’s youngest ag visionaries, with a Nebraska Department of Agriculture-sponsored poster contest. This year, Nebraska’s elementary-aged students portrayed “a day on the farm” in their drawings, and I am honored to help judge the contest.    

Keeping our youth inspired and informed about agriculture starts with education. Members of Nebraska’s Agricultural Youth Council (NAYC) are college-age students who advocate agriculture on behalf of our state’s youngest residents. NAYC members promote the industry to elementary students, and also introduce high school juniors and seniors to ag-related leaders and programs, through the Nebraska Agricultural Youth Institute (NAYI). A few weeks ago, both groups participated in their first-ever “Youth in Agriculture” meeting at my Governor’s Ag Conference in Kearney. Close to 100 students met, and more joined via the internet, to hear stories from several recent college graduates, now working within Nebraska’s ag industry. NAYC Counselors Trent Mastny and Johnny Ference moderated the event, and hope to return to their home communities to work in agriculture. Both are great examples of up-and-coming talent within our state. After graduation, Trent plans on gaining outside agribusiness experience to help his family farm in Howells, and Johnny is already working to establish his own seed corn and agronomy services business in Ord.  

I’ve long said that Nebraska’s number one resource is our people. Preparing our next generation of ag leaders is more important than ever, to keep Nebraska growing so we can continue to feed the world. As your Governor, I am proud of our state’s top industry and efforts by young Nebraskans to promote agriculture. We must also take time to thank our state’s many ag producers, who are working every day to Grow Nebraska.

As agriculture continues to grow, my administration welcomes new ideas from each and every one of you across our great state. 



U.S. Requests WTO Panel to Examine Indonesia’s Import Restrictions on U.S. Agriculture

United States Trade Representative Michael Froman announced today that the United States has requested the World Trade Organization (WTO) to establish a dispute settlement panel to examine Indonesia’s wide-ranging import restrictions on fruits and vegetables (such as apples, grapes, and potatoes), animal products (such as beef and poultry), and other agricultural products.  These measures include a ban on poultry and certain meat products and Indonesia’s trade-restrictive import licensing regimes for horticultural products and animals and animal products.  Indonesia’s prohibitions and restrictions have unfairly limited opportunities for U.S. farmers and ranchers to export their world-class products to Indonesia’s large and growing market.  The United States has been working closely with New Zealand in this dispute, and New Zealand is also requesting the establishment of a WTO panel to examine Indonesia’s import restrictions.

In 2014, the United States exported a record-high $155.1 billion of agricultural exports to the world, supporting over a million American jobs. Increasing those exports and protecting the trade rights of American farmers and ranchers is a high economic priority for President Obama.

“American-grown agriculture exports are tremendously beneficial to the economy of America’s heartland,” said U.S. Trade Representative Michael Froman. “That’s one of the chief reasons that President Obama’s historic trade agenda is a major component of his Middle Class Economics strategy. I’m proud to take this action today standing up on behalf of farmers and ranchers across the United States who have been shouldering unfair export barriers to the fourth largest country in the world, Indonesia. This announcement comes at a time when the Obama Administration is fighting to unlock other economic opportunities for American agricultural exporters across the Asia-Pacific region through the Trans-Pacific Partnership.”

“USDA welcomes this next step in the WTO dispute settlement process,” said Secretary of Agriculture Tom Vilsack.  “USTR and USDA have worked over the past two years to hold Indonesia to its trade commitments. America’s farmers and ranchers are among the most productive in the world, but they need a level playing field.  When our trading partners don’t play by the rules it costs American jobs, so it is critical we hold them accountable.”

“The implications of Indonesia’s trade regulations are particularly relevant for Washington State, because my state is one of the top exporters of horticultural products, including apples, to Indonesia,” said Rep. John Larsen (WA-2). “This barrier to a critical market has created a guessing game about what Indonesia’s future needs will be, leading to major uncertainty for our farmers. I am pleased USTR has taken action to hold our trading partners accountable.”

“By limiting access to an important market for Washington’s apples and pears, Indonesia’s trade restricting actions have harmed Washington’s thriving agricultural sector which supports communities across the state,” said Rep. Dave Reichert (WA-8). “I applaud Ambassador Froman for his commitment to challenging these barriers, so that our specialty crop producers can reliably access a top market.”

“It is imperative to my constituents and I that we see strong enforcement of U.S. trade agreements to give us confidence that these provisions will protect American workers and businesses,” said Rep. Kurt Schrader (OR-05).  “The unfair trade restrictions being imposed by Indonesia are hurting America’s producers and it’s critical that the USTR continue to take the enforcement actions necessary to maintain a level playing field for U.S. small businesses, especially our farmers and ranchers. Our small business owners need the ability to export their high-quality products, free of prohibitive limitations and I hope this measure will prevent further economic growth from being stifled.”

“Nebraska is one of the top exporters of agricultural products – especially beef – and access to foreign markets is a critical component of the economy,” said Rep. Brad Ashford (NE-2).  “Increasing open access to these foreign markets for U.S. goods means more jobs at home, and allows our producers to be more competitive in the global marketplace.  I support Ambassador Froman and Secretary Vilsack in taking this action, and working to provide a more level playing field for U.S. goods abroad.”

Indonesia is the fourth most populous country in the world and an increasingly important export market for many U.S. agricultural products, with exports of agricultural products affected by Indonesia’s import licensing regimes totaling nearly $200 million in 2014.

In 2014, U.S. exports of affected horticultural products to Indonesia exceeded $122 million – including $50 million of apples and over $37 million of grapes.  In the absence of Indonesia’s trade-restrictive import licensing regime, however, we would expect U.S. farmers to be able to compete more effectively for sales to Indonesian consumers.  In 2014, exports of affected horticultural products to Malaysia, a similar market, totaled $128.5 million, $6 million more than exports to Indonesia, despite the fact that Indonesia’s population is over eight times larger than Malaysia’s.

U.S. exports of affected animals and animal products totaled $63.2 million in 2014.  As with exports of horticultural products, however, we would expect U.S. producers to compete more effectively in the Indonesian market in the absence of Indonesia’s trade restrictions.  For example, U.S. exports of affected animals and animal products to the Philippines, another similar market, totaled $248.3 million in 2014, notwithstanding the fact that the population of the Indonesia is 2.5 times larger than that of the Philippines.

Today’s action confirms the President’s commitment to leveling the playing field for U.S. exports, and to holding our trading partners to their WTO commitments.

Background
Since 2012, Indonesia has maintained unjustified and trade-restrictive licensing regimes for the importation of horticultural products and animals and animal products.  Indonesia has amended its regimes several times, adding additional trade-restrictive requirements.  The United States consulted with Indonesia in January 2013 and, working together with New Zealand, consulted again in August 2013 and in May 2014 to address the modifications to Indonesia’s import licensing restrictions.

In conjunction with its import licensing regimes, Indonesia prohibits the importation of certain products at certain times and restricts the sale of imported products within Indonesia.

U.S. agricultural products affected by Indonesia’s import licensing regimes and related prohibitions and restrictions include fruits, such as apples, grapes and oranges; vegetables, such as potatoes, onions and shallots; dried fruits and vegetables; flowers; juices; cattle; beef, including a ban on secondary cuts; poultry, including a ban on chicken parts; and other animal products.

Through its import licensing regimes and related measures, Indonesia appears to have acted inconsistently with its WTO obligations.  In particular, the measures appear to breach Article XI:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article 4.2 of the Agreement on Agriculture, which prohibit restrictions on the importation of goods, including those made effective through import licenses.  



Breuer Named Dairy Specialist for Northwest Iowa

Ryan Breuer joins the Iowa State University Extension and Outreach dairy team as dairy specialist for northwest Iowa. He will serve Audubon, Buena Vista, Calhoun, Carroll, Cherokee, Clay, Crawford, Dickinson, Emmet, Humboldt, Ida, Kossuth, Lyon, Monona, O’Brien, Osceola, Palo Alto, Plymouth, Pocahontas, Sac, Sioux, Webster and Woodbury counties. Breuer’s office will be in the Sioux County Extension Office in Orange City. He fills the position formerly held by Kevin Lager.

Leo Timms, Iowa State University professor in the Department of Animal Science and extension dairy specialist said the dairy industry in northwest Iowa is progressive. “Breuer has the dairy farm background and veterinary expertise giving the support they need to flourish. I see him as highly enthusiastic and yearning to learn, taking his education a step further by collaborating with dairy owners,” said Timms.

At a recent dairy industry meeting of the statewide Dairy Advisory Group of partners and stakeholders, Timms mentioned, “Breuer was jumping right in to participate. He’s very excited and will be a great fit for northwest Iowa.”

In 2012, Breuer received his doctorate in veterinary medicine from the University of Wisconsin - Madison, with a special focus on food animals and bovine medicine. His bachelor’s degree is in pre-veterinarian studies with a concentration on biological sciences and chemistry from Marian University in Fond du Lac, Wis.

Breuer has worked as a food animal and bovine veterinarian with River Valley Veterinary Clinic in Plain, Wisconsin, and most recently was associate practitioner at the Mayville Animal Clinic in Wisconsin. He spent his veterinary internships practicing dairy medicine and ambulatory rotations with numerous veterinary services in California, Idaho and Wisconsin.

Breuer’s interests include dairy medicine, transition cow health and calf health-care management. “I believe the most important keys to success for livestock producers are keeping up-to-date with the newest dairy cattle advancements, research and industry support tools to help them operate more efficiently and effectively while still maintaining high standards of animal welfare and health, to produce excellent quality products for consumers,” he said.

As ISU Extension and Outreach dairy specialist Breuer will be focusing on engaging dairy producers and professionals serving them. “One of my goals will be to provide dairy producers with a better understanding of the dairy industry tools available,” said Breuer. He plans to use informational pamphlets, workshops, instructional meetings and on-farm dairy programs to enhance understanding and profit.

Melissa O’Rourke, farm management specialist with ISU Extension and Outreach indicates that Breuer’s veterinary expertise will be valuable to the northwest Iowa dairy clients. “He is an excellent addition to our ISU Extension and Outreach field staff team,” said O’Rourke. “The dairy industry is a leading component of our agricultural economy in the region and Dr. Breuer’s specialization in dairy strengthens the services available to producers in the area. We have been eagerly anticipating his arrival and I’m excited to start collaborating with him to offer services to our dairy farmers and professionals.”

Breuer has received various awards, including: the 2012 Peter Bunn Award – University of Wisconsin; the 2012 Rock Valley Veterinary Medical Association Award from Wisconsin; and the 2011 Wisconsin Veterinary Medical Association Award. He is an active member of several professional organizations including Wisconsin Veterinary Medical Association, American Association of Bovine Practitioners, American Association of Swine Veterinarians, FFA Alumni Organization, 2007-2015, and the Wisconsin Farm Bureau.

Breuer can be contacted through the Sioux County Extension Office at 712-737-4230 or rmbreuer@iastate.edu.



Farmer Featured on Undercover Boss to Speak at Alliance Summit

Brad Scott, partner in Scott Brothers Dairy Farm in San Jacinto, Calif., will address attendees at the Animal Agriculture Alliance’s annual Stakeholders Summit, to be held May 6-7, 2015 in Kansas City, MO.  Early registration is now available for the 2015 edition of the Alliance’s showcase event, themed “The Journey to Extraordinary.”

Scott Brothers Dairy was featured on an October 2013 episode of the reality television show Undercover Boss focused on Menchie’s Frozen Yogurt, a Los Angeles-based chain with more than 350 locations globally. The episode followed Menchie’s CEO Amit Kleinberger as he made undercover visits to several store locations as well as Scott Brothers Dairy Farm, which supplies frozen yogurt mix to the franchise. Scott was the only Scott Brothers representative who was aware of the Undercover Boss filming until the episode was complete.

Scott owns and operates the 1,000-cow dairy along with his brother, Bruce and his father, Stan. The milk travels to their nearby manufacturing plant, Scott Bros. Dairy, where it is bottled or turned into frozen yogurt mixes and other popular dairy foods. As a fourth generation dairyman, Scott along with his family partners, believes in the importance of sustainable agriculture. Scott Brothers Dairy Farms recycle the water used by the dairy from the municipality to grow crops that feed the cows. They’ve also installed more than 300 solar panels to produce some of the electricity for the farm and to help offset their carbon footprint. Most recently, they entered a partnership with Ag Waste Solutions that will convert cow manure into diesel fuel to power their farm equipment.    

Currently, Scott serves as a director of the Dairy Council of California. He is the past chair of the California Farm Bureau Young Farmers & Ranchers and the California Beef Council, where he still serves as a board member. He is a county and state DHIA board member. Additionally, Scott has served on the board of the Dairy Management Inc. as well as on committees of the National Cattlemen’s Beef Association.

“Usually the word ‘undercover’ has negative connotations in our industry,” said Kay Johnson Smith, Alliance president and CEO. “We’re excited to have Brad share how his unique undercover experience turned out very positively for Scott Brothers Dairy Farm. With restaurants and retailers regularly announcing new sourcing policies, supplier relationships are becoming increasingly important. Summit attendees will definitely benefit from hearing about how they can apply the lessons Brad learned from his experience, even without appearing on the small screen.”  

The Summit is a one-of-a-kind conference, ideal for networking across sectors of the food chain as it is attended by a diverse group of decision makers, including representatives from farms, ranches, food processors, restaurants, grocery stores, legislators, universities and government agencies. The 2015 event, set in Kansas City, Mo., will be the first edition of the Summit held outside of the Washington, DC area.

This year’s event will explore animal agriculture’s continuous efforts to embrace new technologies that will help feed a growing population while measuring sustainability, engage consumers in innovative ways to bridge the knowledge gap, and highlight initiatives that demonstrate agriculture’s commitment to transparency.



Ethanol Stocks Dip to 6-Week Low

U.S. ethanol supplies fell to a six-week low despite an increase in production, according to data released Wednesday, March 18, by the Energy Information Administration.

Total ethanol stockpiles fell for the third straight week, down about 400,000 barresl (bbl), or 1.7%, to 20.8 million bbl during the week-ended March 13. Total supplies are 5.5 million bbl, or 36.3%, higher than during the comparable year-ago period.

Plant production increased for the second straight week, edging up 3,000 barrels per day (bpd) to 947,000 bpd while up 6.3% year-over-year. Output during the four weeks ended March 13 averaged 5.9% higher than the corresponding period in 2014.

Blender inputs, a proxy for ethanol demand, increased 23,000 bpd, or 2.7%, to 863,000 bpd last week while up 2.1% year-over-year. Inputs over the most recent four-week period are up 0.8% from the comparable year-ago period.

EIA reported implied demand for motor gasoline increased 745,000 bpd to 9.26 million bpd, while 8.8% higher than the same week last year.



DTN Retail Fertilizer Trends - 10-34-0 up 6%

Retail fertilizer prices tracked by DTN for the second week of March 2015 remain stable with one major exception. 10-34-0 is continuing to shift higher with concerns about availability of the fertilizer with an acid shortage. At $626/ton, its average price jumped 6% compared to a month ago.

Four other fertilizers recorded slightly higher prices, although no significant leaps. DAP averaged $570/ton, potash $489/ton, UAN28 $331/ton and UAN32 $371/ton.

Three fertilizers were slightly lower compared to a month ago. MAP averaged $597/ton, urea $471/ton and anhydrous was at $706/ton.

Two of the eight major fertilizers are now double-digits higher in price compared to March 2014, all while commodity prices are significantly lower from a year ago. 10-34-0 is 22% higher while anhydrous is 13% more expensive compared to year earlier.

Both MAP and potash are 3% higher while DAP is 2% more expensive compared to a year earlier.

Three nutrients are now lower compared to retail prices from a year ago. UAN28 is down 4% while UAN32 is now 5% less expensive and urea is 12% less expensive than the same time in 2014.



Farm Credit Leaders Identify Commodity Prices as the Greatest Challenge Facing Ag Producers in 2015

Commodity prices are the greatest challenge facing agricultural producers in 2015, according to a poll of Farm Credit directors from America’s heartland.

More than 61 percent of the directors — from the boards of 17 Farm Credit lenders in 15 states and of AgriBank, their St. Paul-based funding bank — said commodity prices are the greatest challenge facing ag producers this year. The directors, most of whom are also farmers or ranchers, indicated the next biggest challenges are input costs (over 22 percent), Mother Nature (more than 7 percent) and Farm Bill implications (nearly 6 percent). Land rents and interest rates were each cited by less than 3 percent of the respondents.

“Prices for corn and other key commodities produced in our region are down dramatically from recent highs to more normal levels,” said Doug Felton, chair of the AgriBank board and a seed and livestock farmer based in Northfield, Minn. “Lower prices will have a direct impact on the profitability of crop producers. The good news is many crop producers are in a strong financial position to weather this turn in the ag cycle. And the livestock industry is expected to continue to benefit from lower feed costs.”

AgriBank conducted the poll last week among directors attending the 2015 AgriBank Annual Meeting in Orlando, Fla. The 17 affiliated Farm Credit Associations affiliated with AgriBank provide agricultural loans in a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. Farm Credit is a top source of loans for agriculture and rural borrowers in these states. Eighty-five directors participated in the poll.



32 groups denounce Beef Checkoff MOU; Call for investigation into unlawful use of Checkoff funds

Today 32 groups sent a letter urging U.S. Agriculture Secretary Tom Vilsack and the chairmen and ranking members of both the U.S. House and U.S. Senate agriculture committees to reject the newest proposal to double the assessment rate for the federally mandated Beef Checkoff Program and investigate the group's allegation that Beef Checkoff Program funds are being used unlawfully to support the rate increase.

On Friday the U.S. Department of Agriculture- (USDA-) sanctioned Beef Checkoff Enhancement Working Group (Industry Working Group) announced that it had reached an internal agreement to begin lobbying for the rate increase.

The rate increase was recommended by the Beef Checkoff Program's Federation of State Beef Councils (Federation), an organization that is funded by the Beef Checkoff Program and prohibited from using checkoff funds to lobby for rate increases.

The letter by the 32 groups alleges that the Federation has engaged in unlawful lobbying activities by actively recommending that U.S. cattle producers support the Industry Working Group's proposal to increase the checkoff assessment.

The 32 groups' letter also expressed frustration regarding Vilsack's refusal to address the "offensive and glaring conflicts of interest" within the Beef Checkoff Program and his inaction on their collective desire to amend the program to allow U.S. farmers and ranchers to begin promoting their exclusively USA beef.

In support of their conflicts of interest claims, the 32 groups state that the primary recipient of Beef Checkoff Program funds, the National Cattlemen's Beef Assocation (NCBA), controls the entity that decides how funds will be spent; uses funds to offset its organizational costs; and, is accorded a distinct lobbying advantage by aligning itself with the positive brand identification associated with the well-known Beef Checkoff Program.

To restore the purpose of the Beef Checkoff Program to that of being an equal and non-ideological benefit to all producers, the 32 groups urged government officials to:

    Enforce the prohibition against conflicts of interest in contracting and all other decision-making operations of the Beef Checkoff Program.

    Enforce a prohibition against the Beef Checkoff Program contracting with organizations that engage in policy-oriented activities.

    Require a legally independent Federation, without affiliation to NCBA or any other private entity.

The 32 groups that signed the letter include state, regional and national organizations that directly represent the interests of cattle farmers and ranchers who are currently required by law to pay $1 for every head of cattle they sell to the national Beef Checkoff Program. Also included is a national group representing consumers who are the targets of the Beef Checkoff Programs marketing efforts. The groups include:

American Agriculture Movement; American Grassfed Assn.; Ashtbaula Geauga Lake Counties Farmers Union (OH); Buckeye Quality Beef Association, Inc. (OH); California Farmers Union; Cattle Producers of Louisiana; Colorado Independent CattleGrowers Assn.; Family Farm Defenders; Farm and Ranch Freedom Alliance; Food & Water Watch; Independent Cattlemen of Nebraska; Independent Cattlemen of Wyoming; International Texas Longhorn Assn.; Missouri Farmers Union; Missouri Rural Crisis Center; Missouri's Best Beef Co-Operative; Murray County, Oklahoma, Independent Cattlemen's Assn.; National Association of Farm Animal Welfare; National Farmers Organization; National Latino Farmers & Ranchers Trade Assn.; Nebraska Farmers Union; Nebraska Women Involved in Farm Economics; Nevada Live Stock Assn.; Northern Plains Resource Council; Northern Wisconsin Beef Producers Association; Ohio Farmers Union; Organization for Competitive Markets; Powder River Basin Resource Council; R-CALF USA; Rocky Mountain Farmers Union; South Dakota Stockgrowers Assn.; and, Western Organization of Resource Councils.



Pork Producers Need Exports; TPA Promotes Trade

The National Pork Producers Council in congressional testimony given today reiterated the importance of trade to U.S. pork producers and urged lawmakers to approve legislation that facilitates finalizing free trade agreements, which boost exports and create jobs.

Testifying on behalf of NPPC, Dr. Howard Hill, a pork producer and veterinarian from Cambridge, Iowa, who is chairman of the association’s Trade Policy Committee, told members of the House Committee on Agriculture that the U.S. pork industry exports more pork to the 18 countries with which the United States has free trade agreements than to the rest of the nations combined.

Since 1989 – the year the United States began using bilateral and regional trade agreements to open foreign markets – pork exports have increased 1,550 percent in value and 1,268 percent in volume. The United States shipped more than $6.6 billion of pork to foreign destinations in 2014.

He called on Congress to approve legislation renewing Trade Promotion Authority (TPA) so that new trade deals can be finalized and implemented to help the U.S. economy.

TPA defines U.S. negotiating objectives and priorities for trade agreements and establishes consultation and notification requirements for the president to follow throughout the negotiation process. Once trade negotiators finalize a deal, Congress gets to review it and vote yes or no – without amendments – on it. Congress has granted TPA to every president since 1974, with the most recent law being approved in August 2002 and expiring June 30, 2007.

The key reason TPA is needed, Hill pointed out in his testimony, is for concluding the Trans-Pacific Partnership negotiations among the United States and 11 Pacific Rim countries. That deal would be the most significant commercial opportunity ever for U.S. pork producers, generating more than 10,000 pork industry jobs.

“U.S. trade negotiators will have the final leverage they need to close the TPP negotiations when Congress passes TPA,” testified Hill. “It will allow nations to cut to their bottom line negotiating position in TPP.”

Failure to pass TPA, noted Hill, would send a signal to the world that the United States is turning its back on the Asia-Pacific region – the fastest growing area in the world – and allowing other countries to write the rules for international trade.

“The U.S. pork industry, U.S. agriculture, indeed the entire U.S. economy needs TPA, and we need it soon,” Hill concluded.



NMPF to Congress: Favorable Trade Deals Needed to Sustain Recent Dairy Export Growth

The National Milk Producers Federation said today that exports have given the dairy industry a tremendous boost in recent years and that balanced free trade agreements, implemented with congressional trade negotiating authority, are crucial to the future economic health of U.S. dairy farmers.

Testifying before the House Agriculture committee, NMPF board member and Wisconsin dairy farmer Pete Kappelman said U.S. dairy exports have increased 625 percent – to a record $7.1 billion since 2000 – and that today, the equivalent of one day’s milk production each week is sold in foreign markets.

“That makes exports critical to the health of my farm and our dairy industry at large,” Kappelman said, adding that, because overseas population growth outpaces domestic growth, exports are the key to continued expansion for dairy farmers.

Kappelman, who farms in Two Rivers, Wisconsin, said it is not coincidence that enormous growth in dairy exports occurred while the United States was implementing several free trade agreements, and that each of those agreements was approved by using Trade Promotion Authority. “In every case, our dairy exports to countries with which we implemented free trade agreements have shown substantial, sometimes dramatic, increases,” he said.

Right now, Kappelman said, Congress should approve new TPA legislation to complete a favorable Trans-Pacific Partnership agreement between 12 Pacific Rim countries. “Significant access to TPP’s most protected dairy markets – Japan and Canada – is absolutely essential to us, and both of those countries have pointed to the importance of having TPA in place as TPP talks enter their final stage,” he said.

“The TPA legislation introduced last year put a strong new priority on tackling nontariff barriers, which have been cropping up much more frequently,” Kappelman added. He said these range from unjustifiable health and safety measures to efforts to give European Union producers an advantage in international markets by misusing Geographical Indications.

“Our negotiators have moved the ball forward on many key issues but more work still needs to be done,” Kappelman said. “To ensure that we conclude a high-standard, balanced agreement that delivers net trade benefits for the U.S. dairy industry, we need to have TPA in place.”

Kappelman testified at a hearing on the importance of trade to agriculture. He heads NMPF’s International Trade Committee and is chairman of Minnesota-based cooperative Land O’Lakes, Inc.  He is also a board member of the U.S. Dairy Export Council.



House Renews Efforts to Repeal the Death Tax
 
Today, the House Committee on Ways and Means, Subcommittee held a hearing on the Burden of the Estate Tax on Family Businesses and Farms. National Cattlemen’s Beef Association member and seventh-generation cattleman from Fort Davis, Texas, Bobby McKnight testified before the subcommittee on how the death tax affects cattle producers.

“Many farm and ranch families are asset-rich and cash-poor, with most of the value of their estate attributed to the value of the land they use to raise cattle and grow food and fiber for consumers around the world,” said McKnight. “Strong export demand has been one of the driving forces in the increase in value of crop and pasture land in almost every state, not to mention the pressure from commercial development. Combined together, the increase in the value of farmland has many farm and ranch families concerned that they may trigger the estate tax simply through increasing land values.”

McKnight was able to share his family’s personal story of facing the death tax, and the consequences to their livelihood and operation in southwest Texas.

“When times have been lean, I have had to make sacrifices to keep my business above water, but sometimes you run out of places to cut,” said McKnight. “That is what happened to my family during hard times brought on by the estate tax. I had to let go of seasoned employees that had families of their own and were forced to work elsewhere. The skilled labor that I needed to run my operation was lost.”

NCBA calls for the immediate repeal of the death tax.



NCBA and PLC Accepting Fall Internship Applications
 
The National Cattlemen’s Beef Association and the Public Lands Council’s government affairs office in Washington, D.C., is accepting applications for the fall 2015 public policy internship. The deadline to submit an application is April 15, 2015.

“Growing up in California, I’ve witnessed a host of political decisions that do not always support production agriculture,” said Ben Granholm, a senior at California State University, Fresno, and 2014 policy intern. “Interning with NCBA and PLC has allowed me to become a part of the team that fights for agriculture and the beef industry each and every day. Not many college students are able to say that they lived and worked in the nation’s capital while representing our countries most vital industry.”

NCBA Executive Director of Legislatiave Affairs Kristina Butts said this is a great opportunity for students with an interest in the beef industry and public policy.

“The internship gives college students the opportunity to work alongside staff on a range of issues that impact U.S. cattlemen and women,” Butts said. “The internship is designed to work closely with the lobbying team on Capitol Hill; to assist with NCBA and PLC’s regulatory efforts; and to work closely with the communications team.”

NCBA and PLC are affiliate organizations working on behalf of cattle producers and ranching families across the country. NCBA is producer directed and consumer focused, which creates a unique opportunity to unify policy and marketing efforts for the beef industry. Similarly, PLC works to maintain a stable business environment in which livestock producers that hold federal lands grazing permits can continue to conserve the resources and ranching heritage of the West. Together, NCBA and PLC represent the cattle and sheep industries and producers who operate on both public and private lands

The full-time internship will begin Sept. 15, 2015 and end Dec. 18, 2015. To apply, interested college juniors, seniors or graduate students should submit the application, college transcripts, two letters of recommendation and a resume to internships@beef.org. More information about the NCBA public policy internship is available on www.BeefUSA.org.