Thursday April 16 Ag News

RICKETTS ANNOUNCES EUROPEAN UNION AS FIRST TRADE MISSION

Today, Governor Pete Ricketts announced that the first international trade mission of his administration will be to the European Union (EU) and will include visits to Italy, Belgium, and Denmark. The Governor and delegates will be in the EU June 7th-15th.

“Expanding the number of trade missions is a priority of my administration,” said Governor Pete Ricketts. “Taking Nebraska agriculture and businesses on the road is important to growing Nebraska for the next generation and ensuring that our economy stays strong. Cultivating trade relationships in a global economy is a key part of achieving these goals. This mission to Europe will help strengthen existing relationships and build new ones.”

The Governor said he chose the EU as his first overseas mission because there are opportunities on a number of different fronts, including marketing Nebraska agriculture and food products, inviting EU food processing and bioscience companies to consider Nebraska locations, and sharing Nebraska’s agriculture story during a critical time in international trade policy development.

The Governor made the trade mission announcement today at the Emerging Ethanol Issues Forum in Omaha, where he called attention to the synergies between Nebraska and the EU by noting the Danish bioscience company Novozymes’ 2011 investment in Nebraska.

“When Novozymes invested $200 million in a Nebraska production facility, benefits to our state were two-fold,” Governor Ricketts said. “This production facility on Cargill’s campus created high-paying jobs in our state. This project provided a boost to Nebraska’s economy and also strengthened our state’s foreign relationships. My intention is that this June trade mission will lead to similar outcomes.”

The trade mission is being jointly organized by the Nebraska Departments of Economic Development and Agriculture. DED will coordinate the Italy and Denmark stops, while NDA will be responsible for the Belgium activities.

“Nebraska has a diverse economy that includes agriculture, manufacturing, biosciences, and the service industry,” said DED Director Brenda Hicks-Sorensen. “We want to highlight Nebraska’s competitiveness as a place to do business and welcome foreign companies in industries that match our strengths.”

“Our stop in Brussels, Belgium, will focus on both trade and trade policy, as negotiations continue on the Transatlantic Trade and Investment Partnership (TTIP) agreement with the European Union,” said Agriculture Director Greg Ibach. “We will host several events to promote Nebraska agricultural goods and business opportunities in the state. Regarding policy, TTIP has the interest of Nebraska’s farmers, ranchers, and agribusinesses as it stands to significantly improve market access through reducing trade barriers. Our goal is to help our EU partners better understand the practices and technologies Nebraska farmers and ranchers use to produce safe, quality, abundant agricultural goods.”

Brussels is the headquarters for the governmental offices of the European Union.

While trip details are still being finalized, the Governor is inviting all parties interested in learning more about the trade mission, and possibly participating in the trip, to contact either DED or NDA for more information. For more information, contact Joe Chapuran at DED by calling 402-658-1138 or Stan Garbacz at NDA by calling 402-471-2341.

Nebraska exported roughly $900 million worth of goods to European Union countries in 2014, with agricultural goods constituting about half of that figure. Key general exports include machinery, pharmaceuticals, and medicines. Leading agricultural exports include beef, soybeans and soymeal, and other feeds/fodders.



April Rural Mainstreet Index Remains Negative: Farmland Prices Decline Again

While the Creighton University Rural Mainstreet Index for April rose slightly from March’s weak reading, it remains below growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.   

Overall: The Rural Mainstreet Index (RMI), which ranges between 0 and 100, climbed to 46.0 in April from 43.6 in March.

“The stronger U.S. dollar continues to be a drag on the Rural Mainstreet economy. This month more than one-third, or 34.0 percent of the bank CEOs reported that the strong U.S. dollar was having a negative impact on their local economy.  Gains in the U.S. dollar have made U.S. goods, especially agricultural and energy products, less competitively priced abroad," said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.

Farming and ranching: The farmland and ranchland-price index for April sank to 33.4 from March’s very weak 39.4. “Even though crop prices have stabilized, demand for farmland was weak, pulling agricultural land prices down again. This is the 17th straight month the index has moved below growth neutral,” said Goss.

Even though farmland prices continue to decline, expected cash rents for non-irrigated agricultural land continued to rise. In January of this year, bankers estimated that average 2015 cash rents would be $214.    This month an average of $227 was recorded.   

The April farm-equipment sales index increased to a frail 15.6 from March’s record low of 15.2.  The index has been below growth neutral for 21 straight months. “With farm income expected to decline for a second straight year, farmers have become very cautious regarding the purchase of agricultural equipment,” said Goss.

Nebraska: The Nebraska RMI for April increased to 46.2 from 43.3 in March. The state’s farmland-price index advanced to 40.3 from 33.3 in March. Nebraska’s new-hiring index grew to 54.2 from March’s 51.3.

Iowa: The April RMI for Iowa advanced to a weak 43.8 from March’s 43.0. The state’s farmland-price index for April sank to 32.7 from March’s 42.1. Iowa’s new-hiring index for April slumped to 48.2 from March’s 53.8.  James Brown, CEO of Hardin County Savings Bank in Eldora, said, “The average cash rent in our area is close to $300.”

Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.

This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Nebraska corn farmers to invest more than $2.6 billion to plant 9.3 million acres

According to the U.S. Department of Agriculture (USDA), Nebraska corn farmers will plant 9.3 million acres of corn, equal to last year’s total acres planted.

With Nebraska corn farmers’ intentions of planting 9.3 million acres of corn this year, farmers will spend about $280 per acre to get the crop in the ground and off to a good start. This figure, multiplied by the estimated 9.3 million corn acres to be planted in Nebraska, grows to more than a $2.6 billion investment by the state’s corn farmers over a two-month period. That amount does not include land costs, labor or equipment – it’s purely inputs like seed, fuel, and fertilizer. Looking beyond these initial inputs, however, the full economic impact corn has in Nebraska will more than double in a year.

“The full economic impact of the corn industry in Nebraska over the year is greater than $6 billion and reaches far beyond the initial $2.6 billion farmers invest to get their crop in the ground,” said Boone McAfee, director of market development and research at the Nebraska Corn Board. “When the corn crop is harvested, its economic impact grows significantly as it is converted into meat, milk, eggs, ethanol, distiller’s grains, bioplastics and more. That is why it is critical to get the corn planted and off to a good start in the spring.”

Historically in Nebraska, farmers begin planting in mid-April and wrap up as quickly as possible in May. However, weather is a key element for planting. And this year’s moderately dry winter brings a concern of soil moisture that will be available come planting time. According to the April 13 USDA Nebraska Crop Progress and Condition report, topsoil moisture supplies in Nebraska rated 15 percent very short, 32 short, 50 adequate, and 3 surplus. Subsoil moisture supplies rated 13 percent very short, 29 short, 57 adequate and 1 surplus.

“As farmers strive to improve every year, they make this multi-billion dollar investment each spring with the hope of producing more corn per acre,” said Tim Scheer, farmer from St. Paul, Nebraska and chairman of the Nebraska Corn Board. “Nebraska is the third largest corn producing state in the US, and the corn industry continues to be an economic booster for Nebraska. The investment farmers make this spring will not only reverberate through the rural economy, but will multiply to support the rest of Nebraska.”

Another challenge with planting investments this year is the low commodity prices compared to the continued rise of input costs.  This makes the margin for the cost of production very slim for Nebraska farmers.

“Similar to last year, we will see another year of tight margins and farmers will again be producing closer to the cost of production,” said McAfee. “Yet, as we continue to see volatile market activity, there will hopefully be opportunities for farmers to manage their risk.”

Nationally, farmers intend to plant 89.2 million acres this year, which is 2.5 million fewer acres than the previous year. If realized, this will be the third consecutive year of an acreage decline and would be the lowest planted acreage in the United States since 2010. Notably, however, it would still be the sixth-largest U.S. corn acreage planted since 1944 according to the USDA.



Nebraska Farmers Union Receives Grants from Nebraska Environmental Trust & Nebraska Department of Environmental Quality

Nebraska Farmers Union (NeFU) announced today that it will receive two grants for their “Food Waste Reduction through Vermicomposting and Composting” project.

The Nebraska Environmental Trust Board announced funding of $169,046.00 for the project at its meeting on April 2, 2015 in Lincoln. The project is one of the 113 projects receiving $19,491,958 in grant awards from the Nebraska Environmental Trust this year. Of these, 56 were new applications and 57 are carry-over projects.

The Nebraska Department of Environmental Quality awarded NeFU $26,850 for the same project through its Nebraska Waste Reduction and Recycling Incentive Act.

The funding will support efforts by NeFU to create a vermicomposting system to re-direct the waste stream from Lincoln Public School's cafeterias and other sources of waste that would otherwise be sent to the landfill.  This project will utilize onsite worm bins and pre-composting to transform the food and other wastes into soil building, high value worm castings.  This project will also work to incorporate animal compost from the Lincoln Children's Zoo to utilize even more waste product that would otherwise be destined for landfills. The first year of this project will evaluate the reactions of worms with foodstuffs available, creating working plans and manuals all while incorporating education for students. The project will expand to additional schools and other waste sources as soon as feasible.  The grant partners for this project to date are Lincoln Public Schools, Community Crops, and the Lincoln Children's Zoo.  Additional partners will be added as the project capacity expands.

The Nebraska Legislature created the Nebraska Environmental Trust in 1992. Using revenue from the Nebraska Lottery, the Trust has provided over $233 million in grants to over 1,700 projects across the state. Anyone – citizens, organizations, communities, farmers and businesses – can apply for funding to protect habitat, improve water quality and establish recycling programs in Nebraska. The Nebraska Environmental Trust works to preserve, protect and restore our natural resources for future generations.

NeFU President John Hansen said, “These funds will help our project coordinator Jeremiah Picard and our organization turn an unwanted and expensive landfill commodity into a soil building product that will benefit specialty crop growers of food for human consumption, gardeners, and crop producers while also helping research and educational efforts.”   



Smith Supports Death Tax Repeal on House Floor

Congressman Adrian Smith (R-NE) spoke on the floor of the House of Representatives this morning in support of H.R. 1105, the Death Tax Repeal Act.  Smith is a cosponsor of this legislation, which passed the House today.

Remarks as prepared:
Thank you, Mr. Speaker.  I rise today in support of repealing the estate tax.

Repealing the Death Tax is a top priority for Nebraska’s farmers, ranchers, and small business owners.

Agriculture, particularly raising cattle and crops such as corn, is a land and capital intensive process.

These Nebraskans aren’t sitting on piles of cash – their assets are the land and equipment they use to help feed our nation and the world.

They pay income taxes on what they earn, and they pay high property taxes on their land on an annual basis.

They take pride in this work and want their children and grandchildren to continue in their livelihoods.

They shouldn’t have to jump through hoops to ensure their descendants can continue their work when they pass on.

The Death Tax doesn’t penalize the wealthiest Americans.  They can plan their estates and give away their wealth as they see fit.

It penalizes those who have worked all their lives and reinvested in their family businesses to ensure their families and neighbors have every opportunity to be hardworking taxpayers.



Statement by NE Farm Bureau President Steve Nelson, Regarding House Action to Repeal Death Tax

"We appreciate the actions taken today in the U.S. House of Representatives to pass the Death Tax Repeal Act of 2015. We thank all three of Nebraska’s Congressmen, Fortenberry, Ashford, and Smith, for their votes to help move this important issue forward.”

"Nebraska farm and ranch families need tax laws that protect their family businesses. Few families have the cash on hand to pay a tax on assets that have already been subject to taxation, putting surviving family members in a position of having to actually sell off part or all of the family business just to pay the death tax.”

“It is critical that Congress continue to make progress in establishing tax policy that helps keep future generations on the farm and ranch.”



House Votes to Repeal the Death Tax
 
The House voted 240 to 179 today for full repeal of the Death Tax, a tax that is threatening the livelihoods of farmers and ranchers across the country. National Cattlemen’s Beef Association President Philip Ellis said H.R 1105 Death Tax Repeal Act of 2015 is commonsense legislation necessary for rural America.

“When did it become appropriate to tax death?” said Ellis, a multi-generational rancher from Wyoming. “This is a punitive tax on farmers and ranchers that is inaccurately framed as a tax on the rich. The U.S. Department of Agriculture even names the death tax as one of the top contributors to the breakup of multigenerational farming and ranching operations.”

At the end of 2012, Congress passed the American Taxpayer Relief Act, narrowly avoiding a return to a $1 million estate tax exemption with a 55 percent tax rate. This legislation provided a permanent exemption of the estate tax of $5 million per individual, 10 million per couple, and raised the top tax rate to 40 percent. While ATRA provided some relief for some farmers and ranchers, fixing the underlying problem is critical. With rising farm land values across America the estate tax will continue to plague farm and ranch families until it is repealed.

“The estate tax is a disservice to agriculture because we are a land-based, capital-intensive industry short of funds, and with few options for paying estate taxes when they come due,” said Ellis. “Unfortunately, all too often at the time of death, farming and ranching families are forced to sell off land, farm equipment, parts of the operation or take out loans to pay off tax liabilities and attorney’s fees.”

Ellis added, “We urge the Senate to act soon and vote for full repeal of the death tax to prevent an undeserved death sentence to many family-owned farms and ranches.”



NMPF Statement on House Vote to Repeal Estate Tax
Jim Mulhern, President and CEO, National Milk Producers Federation

“It’s hard enough for new generations of dairy producers to establish their own farms without the prospect of the estate tax penalizing the transfer of farms between generations of family members.

“That’s why we support the action today in the House of Representatives to repeal the estate tax. H.R. 1105, the Death Tax Repeal Act, banishes the specter of the estate tax from the same business people that we should be encouraging to invest in the future of America’s food production.

“Dairy farming, like most forms of agriculture today, is a capital-intensive enterprise, and has become even more so in the past decade as land values have risen. When younger farmers inherit farms, they are often asset rich and cash poor. The estate tax can hit them with a bill to the IRS that is prohibitively costly. This legislation helps address that problem, and will facilitate the ability of established farmers to transfer their businesses to their offspring.

“The bill repeals the estate and generation-skipping transfer taxes and makes permanent the maximum 35 percent gift tax rate and lifetime gift tax exemption. It also provides for an inflation adjustment to such exemption amount. By repealing the death tax, it will provide more certainty to the agriculture sector, and protect farms’ financial viability for future generations. We encourage the Senate to pass similar legislation to help our family farmers.”



NFU Opposes Repealing Estate Tax; Says Repeal Places Larger Tax Burden on the Family Farmer

National Farmers Union (NFU) President Roger Johnson opposed today's action in the U.S. House of Representatives that would repeal the estate tax, stating the move would place a larger tax burden on American family farmers and ranchers.

“Repeal of the estate tax puts a larger tax burden on those that are currently exempted from the tax,” said Johnson. “Over 99 percent of small farms do not face the tax, as estates under $5.43 million, $10.86 million for couples, are exempted from it. As a result, NFU opposes completely eliminating the tax.

Johnson noted that Congress has repeatedly decreased the tax rate and increased the exemptions, making it increasingly unlikely for family farms to face the tax.

“The U.S. Department of Agriculture estimates that only 0.6 percent of farms have to pay an estate tax, and that another 2.1 percent would have to file returns but would not owe any taxes,” said Johnson. “It is not the estate tax that hurts family farmers. It is repealing the tax that would give them an increased share of the overall tax load.”

Johnson also noted that the move would add to the nation’s debt. “The Joint Committee on Taxation estimates that repealing the estate tax without offsetting revenue or spending will increase the deficit by $269 billion over 10 years. This drag on the U.S. economy will bring rural America down with it.”



NPPC Welcomes Legislation To Renew TPA

Calling it imperative for finalizing free trade agreements that boost U.S. exports and create U.S. jobs, the National Pork Producers Council welcomed today’s introduction of bipartisan legislation granting the president trade promotion authority (TPA) and urged its quick approval by Congress.

Sens. Orrin Hatch, R-Utah, and Ron Wyden, D-Ore., chairman and ranking member, respectively, of the Finance Committee, introduced the TPA legislation, which 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. [A House bill is expected to be introduced soon.] 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.

“TPA is imperative for getting U.S. trading partners to come to the negotiating table with their best and final offers,” said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C.

The main reason TPA is needed now, Prestage said, 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 leverage they need to close the TPP negotiations when Congress passes TPA,” he said. “And the U.S. pork industry needs TPP to continue growing our exports.”

Since 1989 – the year the United States began using bilateral and regional trade agreements to open foreign markets – U.S. 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.

Failure to pass TPA, noted Prestage, 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,” Prestage said.



ASA Lauds Bipartisan Bill to Grant TPA to White House

The American Soybean Association (ASA) praised the introduction of a bipartisan bill that will extend trade promotion authority (TPA) to President Barack Obama. Senate Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.), as well as House Ways and Means Committee Chairman Paul Ryan (R-Wis.) introduced the Bipartisan Congressional Trade Priorities and Accountability Act earlier Thursday, and ASA President Wade Cowan issued the following statement on the bill:

"Trade promotion authority has always been the necessary first step toward reaching trade agreements that help drive demand for soybean farmers across the country. ASA applauds Chairman Hatch, Ranking Member Wyden and Chairman Ryan for their work on this bipartisan bill, and we call on both chambers to take this up and pass it immediately. We then hope that the renewed commitment to trade will help reach conclusion of the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership so that we may further open these key markets to American products. Trade is a bipartisan issue that helps to build the American economy, while strengthening our position in the global marketplace. Nowhere is that role more evident than in agricultural trade. As producers of the nation's leading farm export, soybean farmers know that trade supports rural economies, and ties American producers to consumers around the world. That's a role we cherish, and one that will be significantly advanced by the legislation introduced today."



NCGA Urges Swift Passage of Trade Promotion Authority
The National Corn Growers Association applauded the introduction today of bipartisan legislation to renew and modernize Trade Promotion Authority (TPA) and urged Congress to quickly pass the bill.

The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015) introduced by Senate Finance Committee Chairman Orrin Hatch (R-Utah), Ranking Member Ron Wyden (D-Ore.), and House Ways and Means Chairman Paul Ryan (R-Wis.) will help open the door to new markets for U.S. goods and services, grow the U.S. economy and support jobs in all 50 states. TPA was last enacted in 2002 and expired in 2007.

"Trade benefits American corn and livestock farmers, workers and consumers. Agricultural exports are already a major driver of the U.S. economy, supporting more than one million American jobs. If we remove trade barriers and expand our access to global markets, American farmers can do even more," said Chip Bowling, a Maryland farmer and president of NCGA. "Trade Promotion Authority is critical to ensuring farmers get the best possible deal in trade agreements."

"Buyers around the world choose U.S. corn based on quality, the reliability of our export system and because they know our farmers are committed to helping them grow their businesses," said Ron Gray, an Illinois farmer and chairman of the U.S. Grains Council. "Our farmers need a level playing field to help maintain the U.S. competitive advantage and realize the potential we know exists in a dynamic world grain market. TPA will keep pending trade agreements moving forward and, ultimately, help us better meet the world's food and fuel needs."

"The clock is ticking. Major trade agreements are under negotiation in the European Union and Asia Pacific region. The rest of the world is not waiting for us," said Bowling. "We need Trade Promotion Authority to ensure the United States can negotiate the best possible deal for American farmers, businesses, and consumers. It's time for Congress to act."

NCGA is a member of the Trade Benefits America Coalition, representing more than 250 members dedicated to the pursuit of international trade agreements that benefit American businesses, farmers, workers and consumers.



NCBA Urges Congress to Support Trade Promotion Authority
 
Today, Senators Orrin Hatch (R-Utah) and Ron Wyden (D-Ore.) introduced Trade Promotion Authority legislation, which establishes concrete rules for international trade negotiations that will boost American exports and create new economic opportunities. National Cattlemen’s Beef Association President and Chugwater, Wyo. cattleman Philip Ellis urged Congress to act swiftly to pass this important legislation.

“2014 was the largest year we’ve ever seen for U.S. beef exports, with over $7 billion in total sales,” said Ellis. “It is critical for our government to remove tariff and non-tariff barriers to trade, to ensure our beef exports remain competitive across the world. TPA assures the President and Congress will negotiate present and future trade agreements with common objectives and the understanding that any agreement will receive an up or down vote when presented to Congress.”

Past free trade agreements negotiated under TPA have showed tremendous success for U.S. beef exports. The Korea-U.S. FTA will eliminate a 40 percent tariff rate, Columbia-U.S. FTA will eliminate an 80 percent tariff, Panama-U.S. FTA will eliminate a 30 percent tariffs, and the Dominican Republic-Central America-U.S. FTA will eliminate a 15-40 percent tariff; all over the course of 15 years. Currently, the U.S. exports over $1 billion in beef and variety meats to these markets, with greater opportunity as those tariffs continue to drop.

“The U.S. market is one of the most open markets in the world,” said Ellis. “The only way for us to level the playing field is to negotiate increased market access and tariff elimination through free trade agreements. As a cow/calf producer, the increased trade through these agreements adds value to my cattle and my bottom line. This is not only important for our families, but profitability now, sets the tone for future generations of cattlemen and women. I urge Congress to quickly pass TPA to give our negotiators the credibility needed to move forward on pending free trade agreements.”



Vilsack on the Introduction of Legislation to Support Trade Promotion Authority

Agriculture Secretary Tom Vilsack today released the following statement:

"U.S. agriculture applauds the introduction of Trade Promotion Authority legislation today. We look for quick action by Congress to provide the President with the authority to pursue agreements that open markets for America's farmers, ranchers and agribusiness. Over 70 organizations representing America's farmers and ranchers support trade promotion authority because trade is vital for U.S. agriculture. Last year, agricultural exports totaled more than $150 billion and for many of our products, foreign markets represent half or more of total sales. Those exports supported approximately 1 million U.S. jobs last year. The economy is strengthened in rural communities and throughout the entire country from the additional economic activity that flows from the expanded farm and processing business. Standing still is not an option. Not only do we face barriers in important foreign markets, but we are currently being hurt as these countries negotiate agreements that lower barriers for our competitors. U.S. agriculture's interests are best served by ensuring America is at the table with strong negotiating authority."



Dairy Groups Urge Quick Congressional Action on New TPA Legislation

The National Milk Producers Federation and the U.S. Dairy Export Council today urged the Senate and House to act quickly on new Trade Promotion Authority legislation, saying the measure is crucial to securing well-negotiated trade agreements that open foreign markets to more U.S. dairy products.

The bipartisan TPA legislation was introduced today in the Senate by Senate Finance Committee Chairman Orrin Hatch (R-UT) and senior committee Democrat Sen. Ron Wyden (D-OR), and in the House by Ways and Means Committee Chairman Rep. Paul Ryan (R-WI).

NMPF and USDEC said renewing TPA, which expired in 2007, is particularly important to the U.S. dairy industry because America now exports the equivalent of one-seventh of its milk production. TPA is the key to unlocking future export opportunities, the groups said.

“Because world trade has become a major driver of U.S. dairy farmer income, we need well-designed free trade agreements to keep expanding our exports,” said NMPF President and CEO Jim Mulhern. “All of the past trade agreements that were well-negotiated have been beneficial to the U.S. dairy industry. None of those have been implemented without Congress first approving trade negotiating authority.”

Added USDEC President Tom Suber: “Knowing that a trade agreement will be considered by Congress under trade promotion authority paves the way to press our negotiating partners to make their best offers on the most sensitive issues. Clearly, dairy exports fall into that category and the U.S. needs all the tools it can muster to get the best possible deal.”

The two organizations said TPA also allows U.S. negotiators to prioritize negotiations about products that are subject to significantly higher tariffs in key foreign markets. “This is extremely important for our industry since foreign dairy tariffs are often extremely high,” said Mulhern.

Finally, NMPF and USDEC said TPA will increase congressional influence over trade negotiations and lead to agreements that are better for both the country and the dairy industry. “By having a framework for participating in the process and clearly identified priorities, Congress increases its influence over these agreements as they are being written,” said Suber.



Wheat Growers Support Quick Passage of Bipartisan TPA Legislation

The U.S. wheat industry applauds bipartisan support for the introduction of legislation to modernize and renew Trade Promotion Authority (TPA). The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 includes improvements to the 2002 TPA law that are key to establishing the groundwork for progressive trade negotiations and outcomes for U.S. farmers and businesses.

“Trade is vital to the U.S. wheat industry, with 50 percent of the annual crop destined for export markets. U.S. farmers are eager to sell high quality wheat throughout the world, but artificial trade barriers often stand in their way,” said National Association of Wheat Growers President, Brett Blankenship. “Passage of TPA would send a strong signal that Congress and the Administration are united in their commitment to opening markets for the benefit of farmers and rural communities and creating jobs throughout this country.”

The TPA legislation outlines U.S. trade policy objectives and sets out conditions for the President to negotiate free trade agreements and other trade liberalizing initiatives as well as allowing for expedited Congressional consideration. Also known as “fast track,” TPA builds confidence with our negotiating partners that once an agreement is reached, Congress cannot change it. The bill also institutionalizes consultation requirements to ensure that Congress and the President maintain a strong partnership in advancing trade policy goals.

Together NAWG and U.S. Wheat Associates (USW) encourage the swift enactment of TPA as an essential tool for negotiating market-opening free trade agreements. The United States is currently engaged in negotiations to complete the 12-country Trans-Pacific Partnership (TPP) and the U.S. and European Transatlantic Trade and Investment Partnership (TTIP), which will lower barriers to U.S. wheat exports in several key markets. These agreements will also help ensure that U.S. wheat producers have the same market access as other wheat exporters, including Canada and Australia.

“Comprehensive free trade agreements create a more fair and level playing field, and U.S. wheat farmers need the leverage that TPA would give U.S. negotiators to have a unified voice in a growing international market,” said USW Chairman, Roy Motter. “Japan and other countries are less likely to put their best offer on the table for politically sensitive agricultural products like wheat unless they have the confidence provided by TPA.”

The United States is the world’s largest wheat exporter, offering customers around the globe a reliable, high-quality supply of six wheat classes. In the 2013/14 marketing year, ending May 31, 2014, the United States exported about 32 million metric tons (nearly 1.2 billion bushels) of wheat valued at about $9.7 billion, which supports thousands of jobs and creates economic benefits across the country. More on the industry’s trade work is at www.wheatworld.org/trade or www.uswheat.org/whatwedo/tradepolicy.




Soy Farmers Urge Continuation and Restructuring of Biodiesel Tax Credit

In addition to the overarching priorities identified in the ag coalition letter sent this week, the American Soybean Association submitted separate comments to the Senate Finance Committee in support of the continuation and restructuring of the biodiesel tax credit.

Other groups, including the National Biodiesel Board and American Farm Bureau submitted comments in support of the biodiesel tax credit as well.

The biodiesel tax credit has only been in place since 2005 and has helped biodiesel production grow from 100 million gallons to more than 1.7 billion gallons during that span. This is despite the inconsistency created from the cycle of expiration and retroactive reinstatement of the credit in four of the past six years. Continuation of the credit is needed to follow through on the investment that has been made and to more firmly establish the young biodiesel industry in the marketplace where it competes with the entrenched petroleum industry.

ASA also strongly supports restructuring of the biodiesel tax credit to a production credit. This change would further support domestic biodiesel production versus imported biodiesel, improve administration of the incentive, eliminate potential abuses and improve tax compliance.  ASA has advocated for this change for several years, but the political climate and delicate status of the “tax extender” package has made Congress unwilling to make policy changes to any of the tax credits.

The recent Environmental Protection Agency (EPA) approval of a streamlined Renewable Fuel Standard (RFS) compliance process for Argentine biodiesel increases the urgency of restructuring the tax credit.

Shifting from a blender’s credit to a domestic producer’s credit would eliminate the ability of foreign produced biodiesel to claim the credit. Under the current blender’s credit structure, most imports are eligible to take the tax credit. The change to a domestic production credit would also have the benefit of reducing its cost the U.S. treasury, since imported fuel would no longer be eligible.

The fate of the biodiesel tax credit and all of the “tax extenders” are once again in limbo as efforts on tax reform play out.

Soy Farmers Lead Response to EU ‘Opt-Out’ on Biotech Crops
ASA organized a meeting between the U.S. Biotech Crops Alliance, the U.S. Trade Representative (USTR) and U.S. Department of Agriculture (USDA) officials on April 9 to discuss the recent proposal by the European Union (EU) Commission to allow Member States to individually “opt-out” of importing and using biotech crops that are approved by the European Food Safety Agency.

While the College of Commissioners won’t act on the proposal until later this month, its approval would jeopardize access for U.S. soybeans and soymeal to EU markets, since biotech varieties comprise over 93 percent of U.S. production.  If approved, it is not clear how long the implementation period would be, or how many Member States would exercise the option to exclude biotech crops.  At USTR’s request, ASA is working with the U.S. Soybean Export Council (USSEC) and other farm organizations to assess the impact the proposal would have on EU imports from the U.S. and other exporting countries.  It is clear that, if the proposal goes forward, it would undermine the EU’s original premise as a “common market,” and could violate its World Trade Organization (WTO) commitments.



USDA Reminds Farmers to Certify Conservation Compliance by June 1 Deadline

The U.S. Department of Agriculture (USDA) reminds farmers that the 2014 Farm Bill requires producers to file a Highly Erodible Land Conservation and Wetland Conservation Certification form (AD-1026) with their local USDA service center by June 1, 2015, in order to become or remain eligible for crop insurance premium support.

Most farmers already have a certification form on file since it's required for participation in most USDA programs such as marketing assistance loans, farm storage facility loans and disaster assistance. However farmers, such as specialty crop growers who receive federal crop insurance premium support, but may not participate in other USDA programs, also must now file a certification form to maintain their crop insurance premium support.

"USDA employees are working very hard to get the word out about this new Farm Bill provision," said Agriculture Secretary Tom Vilsack. "While many producers will not need to take action, we want to help make sure that those who are required to act do so by the June 1 deadline. We want all eligible producers to be able to maintain their ability to protect their operations with affordable insurance."

Producers should visit their local USDA service center and talk with their crop insurance agent before the June 1, 2015, deadline to ask questions, get additional information or learn more about conservation compliance procedures. Producers that file their form by the deadline will be eligible for federal crop insurance premium support during the 2016 reinsurance year, which begins July, 1, 2015. USDA will publish a rule outlining the linkage of conservation compliance with federal crop insurance premium support. Go to http://go.usa.gov/3Wy5J to view a copy of the rule.

The Highly Erodible Land Conservation and Wetland Conservation Certification form is available at local USDA service center or online at www.fsa.usda.gov/AD1026form. When a farmer completes this form, USDA Farm Service Agency and Natural Resources Conservation Service staff will outline any additional actions that may be required for compliance with highly erodible land and wetland provisions. USDA's Risk Management Agency, through the Federal Crop Insurance Corporation, manages the federal crop insurance program that provides the modern farm safety net for America's farmers and ranchers.



H5N2 Could Be 'Devastating'

ST. PAUL, Minn. (AP) -- The nation's poultry industry may have to live with a deadly bird flu strain for several years, which would be "devastating," the U.S. Department of Agriculture's chief veterinary officer said Thursday.

Dr. John Clifford also said that while new cases should drop to close to zero once the weather warms up and kills off the virus, there's "very likely" to be a resurgence this fall when the waterfowl that are natural carriers of avian influenza fly south for the winter.

Clifford spoke on a visit to Minnesota, the state hit hardest by outbreaks that have cost Midwest producers over 2 million turkeys and chickens since early March. He said the fact that the highly pathogenic H5N2 virus has already appeared as far east as southern Ontario means there's an uncomfortable risk of it spreading to the East Coast where much of the U.S. broiler chicken industry is based.

"If it sticks around and continues it's going to be very devastating to our poultry industry and our international markets, trade markets, as well as the loss domestically," Clifford said in an interview with The Associated Press. "That's why we have to really use this time appropriately to do all that we can to determine how best we can address and prevent introductions in the future."

Authorities have confirmed N5N2 outbreaks at more than 30 commercial poultry farms in the Midwest, including 22 in Minnesota. All were turkey operations except for one chicken farm in Wisconsin. On Thursday, Wisconsin's agriculture department officials said two more farms had tested positive for infections in the H5 family, and they expected further tests would show it is H5N2.

Officials say there's no risk to public health or the food supply. Economists don't expect the outbreaks to affect retail prices much because the birds that have been killed by the virus itself or euthanized to stop its spread represent less than 1 percent of the 235 million turkeys produced in the U.S. last year.

While some USDA officials have told Minnesota officials the virus could be a problem for three to five years, Clifford said it's impossible to be certain.

"It could be around that long, and there's just no way to know for sure," he said.

Experts believe Minnesota is the epicenter because it's the top turkey producing state -- raising around 46 million turkeys a year -- and its thousands of lakes and wetlands naturally attract large numbers of migrating ducks and other waterfowl. Turkeys are most susceptible, but chickens also die from the virus. While waterfowl can carry avian influenza viruses and spread them through their droppings and oral secretions, they don't usually become sick from them.

The ducks blamed for bringing H5N2 to Minnesota and other Midwestern states migrate through the country's midsection.

The broiler chicken industry, which produces chickens for meat, is clustered along the East Coast in states such as Georgia, North and South Carolina, Virginia, Delaware and Maryland. Clifford said the waterfowl that brought the virus to an infected farm in southern Ontario are likely from flocks that either migrate along the East Coast or intermingle with flocks do.

The USDA has sent about 60 people to Minnesota to reinforce the state's response. State officials have asked U.S. Agriculture Secretary Tom Vilsack to ensure that enough funding remains available. Clifford estimated that the USDA has already spent $20 million to $30 million to reimburse farmers for birds that were euthanized and on other costs. He also said the secretary has the authority to provide additional emergency funding, and it's been requested as the agency gears up for a new round this fall.

The federal government is also working to limit the harm from export bans imposed by around 40 countries that are already hurting both the turkey and chicken industries, which combined export more than $5 billion worth of products annually, Clifford said.

"We've already lost hundreds of millions of dollars in those markets," he said.



FORTIX® FUNGICIDE Now Registered for Suppression of Sudden Death Syndrome in Soybeans

The U.S. Environmental Protection Agency (EPA) has approved the use of FORTIX® Fungicide for suppression of Sudden Death Syndrome (SDS) in soybeans. Its use in most soybean producing states is under a FIFRA 2(ee) label.  FORTIX is jointly marketed and sold by Arysta LifeScience and Cheminova, Inc.

FORTIX is currently registered for use on corn, soybeans and wheat to control the major foliar diseases. The fungicide combines fluoxastrobin, the fast-acting strobilurin, from Arysta LifeScience and flutriafol, the longest-lasting triazole, from Cheminova.

 “SDS is prevalent throughout soybean-producing states,” says Dr. Dunk Porterfield, Arysta LifeScience Fungicide Development Manager.  “It infects soybean seedlings shortly after planting, but symptoms are usually not apparent until mid-summer flowering.”  Research indicates yield losses range from 20-30 percent, and in extreme cases can be as high as 70 percent.

“SDS is caused by a soil-borne fungus, Fusarium virguliforme, that infects the root and moves up the plant killing the leaves,” explains Dr. Jim Barrentine, Cheminova Technical Director.  “Optimum conditions for the disease are soil temperatures below 60 degrees at planting, moderate temperatures during the growing season, wet weather during the growing season and soil compaction. Unfortunately, highly resistant seed varieties do not exist.”

Field trials conducted in 2014 show that FORTIX Fungicide reduces the growth rate of Fusarium virguliforme, allowing the plant more time to photosynthesize and produce yield prior to premature defoliation caused by SDS. FORTIX does not eliminate or prevent the spread of the disease.

“We saw an average yield increase of 8.9 bu/A when FORTIX was applied before or at R1 with SDS present,” Porterfield explains.  Porterfield offers this advice: For best results growers should apply early – at first flower (R1).  If applied after R1, growers should not expect to see significant impact on SDS, but it will control other foliar diseases.   Lastly, growers should use at least the 5 fl oz/A rate.

Barrentine points out by applying FORTIX, growers should see an added benefit of broad-spectrum foliar disease control including frogeye leaf spot and other key diseases. 

FORTIX is in its third year of use. It is convenient, flexible and easy to use. Growers can spray FORTIX early in the season and reap yield-enhancing fungicide benefits all season long. 



AGCO Launches New AGCOStore.com

AGCO Corporation has unveiled AGCOstore.com, its new online store for genuine AGCO-branded toys, collectibles and workshop products.

Developed because of high demand from AGCO customers, dealers and employees, AGCOstore.com is the company's new home for toys and workshop products from AGCO customers' favorite brands, such as Massey Ferguson, Challenger, Gleaner, RoGator, TerraGator, Fendt, Hesston, AGCO Parts and AGCO heritage brands (Cockshutt, Minneapolis-Moline, Oliver and White). Products include die cast scale models, plush toys, branded toolboxes, gloves, hand tools, belt buckles and more.

"Demand for specialty products from AGCO's brands continues to increase every year," said Scott Healy, senior marketing specialist for AGCO Parts. "We are excited to offer our AGCO customers a new, easy way to purchase products that showcase the brands they work with every day."

AGCO has extended its focus on premium customer service to AGCOstore.com by offering online customer support, next-day shipping and free shipping on orders over $150 in the continental United States. In addition, when making a purchase on AGCOstore.com, customers have the option of selecting their local dealership. A portion of each sale is then shared with the local dealer.

Visit www.AGCOstore.com for a full lineup of AGCO specialty items, toys and workshop products.