Monday December 7 Ag News

NE Corn Hosts Grassroots Advocacy Workshop

On December 15th and 16th Nebraska Corn is hosting a Grassroots Advocacy Workshop in Omaha. Tuesday afternoon at Farm Credit Services, representatives from NCGA and FCS will be on hand to talk about federal issues. Trent Nowka and NeCGA lobbyist Mick Mines will also be there to give updates on state issues and talk property taxes. The workshop continues on Wednesday morning at the Embassy Suites La Vista with Steve Uram from NCGA and Holly Pitt-Young. There is no cost for members to attend this event. Please see invitation online at www.necga.org for a more detailed schedule. To register, please call the office or email Morgan at mwrich@necga.org.



Nebraska Farm Bureau President Says Limiting Property Taxes for Schools the Key to Meaningful Tax Relief

Urban and rural Nebraskans have had their fill of high property taxes and the key to providing meaningful property tax relief lies in making structural changes to how K-12 schools are funded, and that includes limiting the amount of property taxes that fund Nebraska schools. That’s the message delivered by Nebraska Farm Bureau President Steve Nelson Dec. 7 to delegates and guests to the Nebraska Farm Bureau Annual Meeting and Convention in LaVista.

“We must start taking the actions that move us in a direction where education doesn’t rely almost solely on property taxes. And we need to do it now. We must look at ways in which we can better control local spending. We need to look at new and alternative sources that balance the funding responsibility for our schools. Property taxes are the main source of funding for K-12 schools, with more than 60 percent of all property taxes collected going towards funding education. We need to look hard at limiting the amount of property taxes that can be used for education purposes, if real reform is to take place,” said Nelson.

In his remarks, Nelson said addressing inequity of how schools are funded is a tax policy issue, not a quality of education issue.

“I want to be clear in saying that our call to address equity in how we fund education, it is not a question of whether or not we believe we should have good schools. We all want a quality education for Nebraska students. We as Nebraskans need to address how we balance the responsibility of funding education. Those scales are out of balance today because of the heavy reliance on property taxes,” said Nelson.

Nelson said skyrocketing property tax bills are a major threat to the viability of many farm and ranch families operations.

“I’ve had the opportunity to travel the state extensively the last few years, and on far too many occasions I’ve had farmers tell me they are making real-life decisions about whether to sell land because they can’t afford their property taxes. We’re talking about state tax policy, policy that we as Nebraskans control, driving people off the farm or ranch.  If we don’t work together to fix this problem, farm and ranch families will go out of business and we’ll see further consolidation in agriculture, which will only harm the rural fabric of our state.”

Nelson also hammered home the point that now is the time for action by the Legislature.

“The Legislature has talked, it’s studied, and it’s examined the issue. We need our rural and urban leaders to work together. We need leadership on this issue. The time for talk is over. It’s time for meaningful actions that yield results and allow all of Nebraska to compete on the national and international levels. This will be our top priority in the 2016 legislative session.”

In his address Nelson also spoke to other key agriculture issues. Among those was the need for Nebraska to adopt policies that help farm and ranch families grow Nebraska’s pork, poultry and dairy sectors, which have become stagnate over the past decade in comparison to neighboring states.

“Farm and ranch families must have access to the tools being used by farmers and ranchers in neighboring states, and that includes the ability for families to work with pork processors in custom feeding arrangements. We have to be aware of what’s happening in the world around us and give our agriculture families the opportunity to compete.”

Nelson also discussed the need for farmers and ranchers to address misinformation about food, farmers and agriculture by taking to social media and other venues.

“There is hardly a news cycle where we don’t see a negative headline that’s somehow related to food and agriculture. We see stories that send the wrong signal to people about farmers and ranchers, the practices we use and the commodities we produce. Whether it’s how we use antibiotics in producing livestock, the use of new seed technologies, the health implications of consuming meat, or overall management of our land and water resources, there are a lot of interest groups that are comfortable painting a picture that agriculture is somehow responsible for many of the ills of society. We have to be willing to share what we do, how we do it, and more importantly, why we do it,” said Nelson.



Hill re-elected Iowa Farm Bureau President
Kjos, Sundblad, and Buskohl re-elected to State Board of Directors

Craig Hill of Milo was re-elected president of the Iowa Farm Bureau Federation (IFBF) for a two-year term at the organization’s 97th annual meeting in Des Moines.      Hill has served as IFBF president since 2011.  His Farm Bureau leadership began with the Warren County Farm Bureau before being elected as the District 8 representative on the state board in 1989 and later served as IFBF vice president from 2001-2011.  As IFBF president, Hill serves as chairman of the board of FBL Financial Group, Inc., and Farm Bureau Life Companies.  In addition, he serves on the American Farm Bureau Federation (AFBF) board of directors.  Hill, his wife Patti, have a daughter, Abbie, and son, Adam, who helps grow corn and soybeans and raise livestock on their Warren County farm.

Delegates also re-elected Carlton Kjos of Winneshiek County, Phil Sundblad of Buena Vista County, and Mark Buskohl of Grundy County to the state board of directors.  Each director will serve a three-year term.

Kjos represents District 1, which consists of 11 counties in northeast Iowa.  Kjos was elected to the state board in 2006.  Before assuming this potions, Kjos served in numerous leadership capacities as a member of the Winneshiek County Farm Bureau, including the offices of county president, vice president, voting delegate, internal study member, AFBF voting delegate, PAC committee member, and chairman of the beef advisory committee.  Kjos and his wife Cynthia raise corn, soybeans, alfalfa, oats, and have a cow/calf herd on their farm that has been in the family since 1862.

Sundblad represents District 3, which consists of 12 counties in northwest Iowa.  He was elected to the state board in 2000.  Prior to serving as District 3 director, Sundblad served in several leadership positions within the Buena Vista County Farm Bureau including the offices of president, vice president, voting delegate, and treasurer.  Sundblad and his wife Brenda grow corn and soybeans on their farm near Albert City.  Additionally, Sundblad serves as president of a locally-owned wind farm in Palo Alto County.

Buskohl represents District 5, comprised of 11 counties in central Iowa.  He was elected to the state board in 2012.  Prior to serving as District 5 director, Buskohl held various leadership positions within the Grundy County Farm Bureau including county president, vice president, voting delegate, AFBF voting delegate, internal study member, and served on various state committees.  Buskohl and his wife Nancy run a diversified farm consisting of a cow/calf herd, cattle feedlot, hog finishing, flock of sheep, corn, soybeans, and hay.

Nine delegates were elected to represent Iowa at the American Farm Bureau Federation (AFBF) Annual Convention in Orlando, Florida, January 8-13.  They include: IFBF President Craig Hill of Warren County; IFBF Vice President Joe Heinrich of Jackson County; Doug Gronau of Crawford County; Dave Seil of Webster County; Jennifer Cash of Cerro Gordo County; Mary Van Zante of Marion County; Kevin Poen of Calhoun County; Derek Von Ahsen of Iowa County; and Trent Stalzer of Hardin County.  Terry Murray of Buena Vista County was elected as an alternate.

Joe Dierickx of Clinton County was elected to a three-year term on the IFBF internal study committee.  The internal study committee serves as a liaison between the county Farm Bureau voting delegates and the state board of directors. 



October Meat Exports Show Improvement, but Still Down Year-over-Year

U.S. pork and beef exports in October edged higher than the previous month, but were still down from a year ago, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork exports were down 3 percent year-over-year in volume to 177,191 metric tons (mt), and fell 21 percent in value to $447.8 million, reflecting lower global pork prices. Through the first 10 months of the year, exports were down 4 percent in volume (1.76 million mt) and were 17 percent lower in value ($4.65 billion).

Similar to the previous two months, pork muscle cut exports improved significantly year-over-year in October, increasing 8 percent to 141,923 mt. But the total results were again held back by weak variety meat exports, which fell 31 percent to 35,268 mt (see editor’s note below).

October beef exports rebounded to some degree from their low September totals, but were still down 14 percent from a year ago in volume (94,524 mt) and fell 26 percent (to $508.2 million) compared to the record-high value posted in October 2014 ($687.1 million). Through the first 10 months of 2015, beef exports were down 12 percent in volume to 877,229 mt and were 10 percent lower in value at $5.28 billion.

Pork exports solid in North American markets, improving in China
October pork exports to Mexico edged slightly lower than a year ago but remained strong at 59,766 mt. For January through October, exports to Mexico were up 5 percent in volume to 589,564 mt, while export value fell 20 percent to $1.04 billion.

Exports to Canada improved 2 percent year-over-year in volume (16,689 mt) in October, while value fell 15 percent to $62.9 million. Despite the weak Canadian dollar, pork exports to Canada have performed relatively well this year, with January-October volume down 5 percent to 165,655 mt and value down 13 percent to $652.9 million.

October exports to China/Hong Kong improved from last year’s low levels, posting the largest volume (32,899 mt, up 23 percent) since early 2014, while export value was down 3 percent to $64.3 million. November results could reveal further improvement, as eligibility to export to China was restored for several U.S. facilities near the end of October. For January through October, exports to China/Hong Kong were down 5 percent from a year ago in volume (271,903 mt) and 13 percent lower in value ($567.2 million).

October exports also trended higher for the Philippines (4,724 mt, up 73 percent), Australia (3,575 mt, up 62 percent), the Caribbean (3,619 mt, up 15 percent) and Taiwan (2,162 mt, up 123 percent), albeit from very low levels last year.

Pork demand remains sluggish in leading value market Japan, with October exports down 10 percent from a year ago in volume (29,849 mt) and value falling 45 percent to $117.2 million. For January through October, exports were 13 percent below last year’s pace in volume (344,609 mt) and down 19 percent in value ($1.34 billion). After record-large imports last year, Japan’s volume from all suppliers was down 7 percent through October. However, its large frozen inventories have declined over the past several months and this could stimulate future demand.

January-October exports accounted for 24 percent of total pork production and 21 percent for muscle cuts only, down from 27 percent and 22 percent, respectively, during the same period in 2014. Export value per head slaughtered averaged $48.84, down 23 percent year-over-year.

“The slowdown in Japan and weak global demand for pork variety meat clearly represent a drag on overall exports in 2015,” noted USMEF President and CEO Philip Seng. “Recent plant relistings will expand opportunities for U.S. pork in China, which is a high-volume market for variety meat. But the global pork variety meat market is intensely price-competitive, especially with very large volumes currently emerging from the European Union, which are further buoyed by the weak euro.”

Beef exports cool to Korea and Taiwan, but improve in some key markets
South Korea and Taiwan have been top performers for U.S. beef exports in 2015, but demand in these markets softened in October. Exports to Korea were down 7 percent in volume (10,342 mt) in October and fell 30 percent in value ($58.8 million). For January through October, exports to Korea were still up 7 percent in volume to 102,919 mt and reached $671.7 million in value, which was steady with last year’s pace.

In Taiwan, October exports fell 16 percent in volume (2,718 mt) and 13 percent in value ($24 million), but January-October exports were still up 3 percent in volume to 29,490 mt and value remained on a record pace at $265.3 million, up 9 percent.

The decline in Korea and Taiwan was offset to some extent by higher October totals in the Middle East, ASEAN and Caribbean. For January through October, these regions posted the following results:

    Export volume to the Middle East was down 16 percent year-over-year to 96,518 mt, but value was up 8 percent to $246.8 million. Egypt continues to be a critical destination for U.S. livers and other variety meat, while the leading muscle cut markets are the United Arab Emirates and Kuwait.

    Led by strong exports to the Dominican Republic, the Caribbean was up 1 percent year-over-year in volume to 19,149 mt and 10 percent higher in value to $135.9 million.

    Exports to the ASEAN region were down 16 percent from a year ago in volume (17,452 mt) but were 7 percent higher in value ($115.3 million), led by substantially larger shipments to Vietnam and Singapore.

Similar to pork, U.S. beef exports to Japan have struggled in 2015. Though Japan remains the largest value destination for U.S. beef, it slipped below Mexico in volume as January-October exports were down 15 percent 176,236 mt. Export value to Japan was down 18 percent to $1.1 billion.

“Japan’s total beef imports from all suppliers are down about 6 percent this year, but it is noteworthy that both Australia and Mexico have made gains in Japan while imports from other suppliers are down significantly,” Seng explained. “Both countries enjoy lower tariffs in Japan through their respective economic partnership agreements, and the year-to-date results certainly show the importance of this advantage.”

Beef exports to Hong Kong were also well below year-ago levels through October, falling 25 percent in volume (92,389 mt) and 29 percent in value ($641.1 million). Although officials from the U.S. and China continue to discuss resumption of beef exports, China remains closed to U.S. beef.

January-October beef exports accounted for 13 percent of total production and 10 percent for muscle cuts only – each down one percentage point from the same period last year. Export value per head of fed slaughter averaged $278.06, down 5 percent from a year ago.

Lamb exports still struggling
October lamb exports also showed modest improvement compared to recent months but remained lower year-over-year. For January through October, exports were down 15 percent in volume to 7,585 mt and down 33 percent in value to $15.8 million. Growth markets in 2015 include Saudi Arabia, Hong Kong, Costa Rica and Honduras, but these gains were offset by lower exports to Mexico and Canada.



Feed Cost Outlook
Brian R. Williams, Assistant Extension Professor
Department of Agricultural Economics, Mississippi State University
 
Last week Dr. Tonsor examined feedlot profitability using K-State's Kansas Feedlot Net Return Series. According to the most recent estimates, Dr. Tonsor points out that we saw the largest estimated loss since the series began. There are two sides of the equation when it comes to profitability for both feedlots and cow-calf operations: revenue and costs. With harvest wrapped up across much of the country and many producers already planning for the year ahead, now is the perfect time to take a closer look at the other side of the equation and examine the cost side of cattle production. Typically, the largest component of feed costs for feedlots is corn, while cow-calf producers may be more interested in pasture rent.

One of the better indicators of corn prices tends to be the stocks-to-use ratio. Typically, when stocks as a percent of total utilization exceed 10%, season average farm prices in the US fall below $4 per bushel. The most recent USDA WASDE report indicates that ending stocks are projected to be around 1.76 billion bushels while total use is projected to be near 13.66 billion bushels. That gives us a stocks-to-use ratio of approximately 12.9% going into the first part of next year. With such a high stocks-to-use ratio, the upside to corn prices will be limited and any movement above $4.00/bu will likely be short-lived. Looking further into the future, corn prices a year from now will be dependent on the size of next summer's crop. Recent estimates for 2016 corn acreage have tended to be mixed, with some analysts expecting an increase in acres while others are expecting lower corn acres. Mississippi State University's 2016 Crop Planning Budgets are projecting a profit of just under $120/acre for the irrigated corn, while last year's budgets projected a loss. Other state's budgets typically yield similar projections, so the numbers seem to point toward a larger 2016 corn crop (barring, of course, any widespread natural disasters). At the same time, there is only limited potential for increased disappearance. Ethanol production has plateaued in recent years, while exports may continue to be limited by a strong dollar. There is potential for increased feed and residual use in 2016/17, particularly given the growth of the beef herd. Even assuming a small increase in feed use, I don't foresee the stocks-to-use ratio dipping below 10% in the next year, which should come as good news for many feedlots.

For many cow-calf producers, a large percentage of their feed costs come in the form of pasture rent. There has been much discussion surrounding cropland values, which have increased more than 200-300% in recent years. Now that crop prices have come back down, many economists are projecting cropland values to drop off significantly over the next few years. Pasture values and rental rates are the exception to the rule. Pasture land was much slower to rise in value, peaking in 2014/15 at the same time cattle prices peaked. As cattle prices fall, expect pasture rental rates to fall over the next few years as well; albeit at a much slower rate than cropland. Looking forward toward 2016, pasture rental rates will likely be similar to this year primarily because many producers are locked into multiple year leases that were negotiated at the height of the cattle market. As those leases expire and are renegotiated over the next two to three years, we will see pasture rental rates come back down to where they were a few years ago.



Farmer-owned cooperative CHS elects directors; 2016 officer slate selected

The producer- and member-cooperative owners of CHS Inc. (NASDAQ: CHSCP) have re-elected five farmers to new three-year terms as directors of the nation's leading farmer-owned cooperative and global energy, grains and foods company.

The elections took place during the 2015 CHS Annual Meeting held Dec. 4 in Minneapolis. CHS directors must be full-time farmers or ranchers to be eligible for election to the 17-member board.

Re-elected were Don Anthony, Lexington, Neb.; David Bielenberg, Silverton, Ore.; Steve Fritel, Barton, N.D.; David Johnsrud, Starbuck, Minn., and David Kayser, Alexandria, S.D.

Following the annual meeting, the CHS Board elected Bielenberg to a fourth one-year term as chairman. Other directors selected as officers for 2016 were:
-    Fritel, first vice chairman
-    Dan Schurr, LeClaire, Iowa, secretary-treasurer
-    Curt Eischens, Minneota, Minn., second vice chairman
-    Anthony, assistant secretary-treasurer



Smith Statement on COOL Tariff Ruling by WTO

Congressman Adrian Smith (R-NE) released the following statement today after the World Trade Organization (WTO) ruled Canada and Mexico may impose retaliatory tariffs of up to $1.01 billion on imported U.S. products due to the U.S. Country of Origin Labeling (COOL) law.

“Stakeholders should continue working together to empower consumers with the information they want about the meat they buy,” Smith said.  “However, continued inaction on COOL will only ensure $1 billion in new annual retaliatory tariffs.  These penalties will damage the ability of U.S. producers and manufacturers to sell goods to 157 million of our best customers in Canada and Mexico while increasing costs for U.S. consumers on a variety of products.

“While some still suggest keeping COOL in its current form while negotiations continue, we must address the urgency of this issue by acting now and then proceeding with talks – otherwise, we risk the imposition of retaliatory tariffs and further damage from the possible prolonged loss of market share.”



WTO Okays $1.01 Billion In Tariffs On U.S. Goods

In the wake of today’s decision by the World Trade Organization setting the retaliation amount Canada and Mexico can place on American products in response to the U.S. Country of Origin Labeling (COOL) law, the National Pork Producers Council renewed its call for Congress to repeal labeling requirements for beef, pork and poultry.

The COOL statute requires meat to be labeled with the country where the animal from which it was derived was born, raised and harvested. (It also applies to fish, shellfish, fresh and frozen fruits and vegetables and certain nuts.)

The WTO today said Canada and Mexico can put $1.01 billion in tariffs on U.S. goods because the COOL law, which the international trade body previously ruled violates U.S. trade obligations, discriminates against Canadian and Mexican animals that are sent to the United States to be fed out and processed.

“America’s pork producers need congressional lawmakers to recognize the imminent harm our economy faces,” said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. “Retaliation has been authorized, and our exports to the No. 1 and No. 2 markets will suffer and so will U.S. farmers, business people and consumers.

“We need Congress to repeal the labeling provision for beef, pork and poultry now.”

According to Iowa State University economist Dermot Hayes, the average U.S. pork producer currently is losing money on each hog marketed, and retaliation from Canada and Mexico against U.S. pork would exacerbate those losses.

The House of Representatives in June voted to repeal the COOL meat labeling provisions, but the Senate has yet to act on the matter.

NPPC opposed COOL when it was being debated by Congress as part of the 2002 Farm Bill, worked for flexibility in the labeling scheme when lawmakers said it would be part of the 2008 Farm Bill and joined with several other meat organizations in filing a lawsuit against the 2013 regulation implementing the law.



WTO Releases Final Figure for Retaliatory Tariffs over US COOL Rule
 
The World Trade Organization today authorized Canada and Mexico to assess over $1 billion in retaliatory tariffs on U.S. products, closing the long running dispute over the U.S. Country of Origin Labeling rule. National Cattlemen’s Beef Association President Philip Ellis says that immediate action is needed by the Senate or retaliation against U.S. exports will soon follow.

“The WTO today ruled that the U.S. COOL rule has cost Canadian and Mexican livestock producers in excess of $1 billion over the past seven years, and has authorized that amount in retaliatory tariffs,” said Ellis. “If the Senate does not act, U.S. beef exports will face a 100 percent tariff in these countries, severely diminishing about $2 billion of beef exports annually.”

This announcement is the final step in a WTO dispute that has been ongoing for over seven years. Despite efforts by the USDA to amend the rule, the WTO has repeatedly ruled that the U.S. COOL rule discriminates against imported livestock in violation of our trade agreements. The loss of the Canadian and Mexican markets is expected to cost U.S. beef producers 10 cents per pound immediately.

“The COOL rule has been a failure on all accounts; it has cost our livestock industry billions in implementation, it has violated our trade agreements with two of our largest export markets, it has resulted in the closure of several U.S. feedlots and packing facilities and it has had no effect on the price or demand for U.S. beef,” said Ellis. “The House voted in an overwhelming bi-partisan vote of 300-131 to repeal COOL and it is time for the Senate to do the same before retaliation damages the entire U.S. economy and irreparably harms our strongest trading relationships.”

Canada has announced a comprehensive list of products they intend to retaliate against, including not only U.S. beef and pork, but grains, fruits and manufactured goods. Under WTO retaliation procedures Canada and Mexico can also carousel the products they retaliate against, choosing to target certain products during parts of the year. That would maximize the damage to the entire U.S. economy.

“America’s cattlemen and women produce the best beef in the world, but we do not support this mandate from the federal government to market our product,” said Ellis. “Retaliation is no longer a far off possibility, it is now a reality.”

Without legislation to repeal COOL, retaliation will begin in mid-December.



After WTO Release of Retaliation Amount, Dairy Groups Again Urge Congress to Solve Country-of-Origin Labeling Dispute

In response to a World Trade Organization (WTO) decision today announcing that Canada and Mexico are authorized to apply a total of over $1 billion in retaliatory tariffs to U.S. exports, dairy producers and exporters renewed their call for Congress to take swift action to eliminate the threat to dairy exports.

“The WTO decision makes it crystal clear that Congress must act immediately to prevent retaliation against the U.S. dairy industry and others whose products could be targeted by Canada and Mexico,” said NMPF President and CEO Jim Mulhern. “At a time of overall softening in the U.S. farm economy due to a drop-off in export demand, we cannot afford further erosion in income resulting from the unnecessary loss of markets that would result from the WTO sanctions.”

The WTO decision establishes the level of retaliation tariffs that Canada and Mexico will shortly be given final authorization to levy against a wide range of U.S. exports due to a WTO finding that parts of the U.S. country-of-origin labeling law violate international trade rules. U.S. dairy products are expected to be among the mix of items targeted for retaliation.

In anticipation of today’s announcement, the National Milk Producers Federation and the U.S. Dairy Export Council last week urged House and Senate leaders to head off the prospect of damaging new tariffs hitting dairy exports to Canada and Mexico. The groups’ letter asked Congress to include a legislative resolution for the COOL dispute in the massive year-end spending bill that has been under negotiation on Capitol Hill.

At this stage, after one more perfunctory approval step, the two countries could activate their tariff penalties as early as this month.

“Retaliatory tariffs would back up exports further onto the U.S. market during a time of overly abundant milk supplies,” added USDEC President Tom Suber. “U.S. dairy producers and processors cannot lose this chance to avoid considerable damage to the export markets they have invested so heavily in developing in recent years.”

“Retaliation against American dairy products would come at a particularly harmful time for our industry given the depressed global dairy market,” said Mulhern. “Multiple cooperatives have already faced an oversupply of milk this year.”

Canada and Mexico are two of the largest U.S. export markets. Together, they import more than $2 billion in U.S. dairy products annually.




NCGA Calls for Congressional Action on COOL

The National Corn Growers Association today renewed its call for Congress to repeal the noncompliant provisions of the Country of Origin Labeling (COOL) law to honor our international trade obligations. NCGA's appeal comes on the heels of a World Trade Organization (WTO) decision that Canada and Mexico can move forward with more than $1 billion in retaliatory tariffs for U.S. noncompliance on COOL labeling for meat.

"Congress must act to fix COOL now," said Ohio farmer John Linder, chair of NCGA's Trade and Biotechnology Action Team. "Canada and Mexico represent two of our largest trading partners. Noncompliance threatens our market share and has serious ramifications for the entire food supply chain and the rural economy. America's farmers and ranchers cannot afford to wait any longer. We urge Congress to bring the U.S. into compliance."



Statement by Bob Stallman, President, American Farm Bureau Federation, Regarding Potential Canadian and Mexican Tariffs on Beef, Chicken and Pork

"The World Trade Organization has given Canada and Mexico the right to place more than $1 billion in tariffs on beef, chicken and pork, based on the last seven years of U.S. country-of-origin labeling requirements. These tariffs would place our nation's farmers and ranchers at serious risk. We urge the Senate to act now to repeal country-of-origin labeling for beef, pork and chicken and eliminate the threat of damaging tariffs on U.S. agricultural exports to Canada and Mexico.

"AFBF supports country-of-origin labeling that meets WTO requirements, and we support the remaining COOL programs, but the risk of retaliation by Canada and Mexico is too great. U.S. farmers and ranchers could suffer a serious blow if Congress does not act quickly."



Two New Reports Show Trans-Pacific Partnership has Major Agricultural, Labor and Environmental Deficiencies

Several major deficiencies in the Trans-Pacific Partnership pact (TPP) – including failure to address currency manipulation or set in place adequate labor and environmental standards – are clear evidence that passage of this pact would hurt American food processors, family farmers and ranchers, while also posing serious threats to U.S. domestic beef production and prices, according to two advisory reports submitted this week.

The minority report to the Agricultural Policy Advisory Committee for Trade (APAC), released today, argues, “passage [of the TPP] will reduce American food processing jobs, labor standards and farm gate prices and result in increased imports and decreased exports of American agricultural products.” The report was submitted by Chandler Goule, National Farmers Union Senior Vice President of Programs, and Mark Lauritsen, United Food & Commercial Workers (UFCW) International Vice President and Director of the Food Processing, Packing and Manufacturing Division.

The authors point out that currency manipulation, which for years has caused American job losses and increased the U.S. trade deficit, is totally unaddressed by the TPP. “This deficit damages the entire economy and has impeded job growth and income gains,” they point out. “Since this is unaddressed, it could nullify the tariff reductions, harming the export potential of many American sectors including and especially beef.”

The report also notes that the TPP would fail, “to place labor and environmental standards on equal footing with economic rights and elimination of sustainability preferences.”

“Regrettably, the labor chapter reflects only incremental improvements over past agreements like NAFTA and will not offset the low labor standards currently existing in many TPP signatories,” note Goule and Lauritsen. “Driven by the attraction of low wages, the U.S. is vulnerable to loss of food processing jobs.”

A similar minority report from the Animal and Animal Products Agricultural Technical Advisory Committee for Trade (ATAC), which was also released today, notes that passage of the TPP would pose serious threats both to rebuilding the U.S. cattle herd and to domestic beef production. This is evidenced by:

·       Since the passage of NAFTA, 50 plants have closed taking out 52,695 in daily kill capacity.

·       On January 1, 2014, beef cow numbers fell to their lowest level since 1941.

·       Total commercial cattle slaughter in 2015 will fall below 30 million for the first time since 1963, when it totaled 27.232 million. This year’s total is expected to be down 4% to 5% from 2014.

·       For fed beef packers, 2015 fed steer and heifer slaughter is expected to decline about 3.5%, or 850,000, from last year.

·       Nine processing plants have closed since the start of 2013, representing a slaughter capacity 3.7 million annually.

·       Since 2007 cattle numbers fell by 8.843 million as of 2014. This forced Cargill in February 2013 to close its Plainview, Texas plant costing 2000 high paying union jobs with good benefits. Four other US beef plants have since closed causing the loss of an additional 2500 high paying jobs.

Kurt Brandt, UFCW’s Assistant to the Director of the Food Processing, Packing and Manufacturing Division was a signatory to the ATAC minority report.

“Clearly, the U.S. Trade Representative was out-negotiated in this case,” notes Brandt. “The series of NAFTA-style free trade agreement passed over the past two decades has led to increasing live cattle imports that have directly depressed US cattle prices, and impeded herd rebuilding. Increasing beef imports allowed by ongoing trade regulation suppresses US beef prices, and further delays herd rebuilding.”

“The primary beneficiaries of this agreement [the TPP], i.e., global food processing companies, would be further empowered to move more of their U.S. jobs overseas,” Brandt wrote. “This means that claims of increased benefits for U.S. food and agricultural production rings hollow, because much of the increasing foreign demand for food will be met by processing plants being built in other countries – including plants built overseas by U.S.-based companies.”



 Comments Sought on Version 3.0 of the FARM Animal Care Manual

The National Milk Produdcers Federation is looking for feedback on the third update to its reference manual from those participating in the National Dairy FARM (Farmers Assuring Responsible Management) Program. Open to all dairy farmers, co-ops and processors, the FARM Program sets the highest standards for dairy animal care. The reference manual, which outlines best management practices central to the program, is reviewed and reissued every three years.

This fall, NMPF’s Animal Health and Well-being Committee approved edits to the manual suggested by the FARM Program Technical Writing Group, comprising academics, veterinarians, producers and co-op staff who reviewed the latest research, discussed feedback received from FARM Program evaluators and sifted through recommendations from large dairy customers.

The committee’s draft includes both minor and substantive edits to all 11 chapters of the manual. Those interested in providing comments on the draft Animal Care manual should utilize the comment form.  All comments must be submitted to Emily Meredith, NMPF Vice President of Animal Care by Wednesday, January 6 at 5:00 pm.  Check out www.nationaldairyfarm.com. 



 CWT assists members in getting 10.1 million pounds of export sales contracts
Cooperatives Working Together assisted member cooperatives in November in getting 18 contracts to sell 4.786 million pounds of cheese and 5.331 million pounds of whole milk powder to customers in Asia and South America. The product will be shipped from November 2015 through May 2016.

These sales contracts bring CWT’s totals through October 2015 to 53.7 million pounds of cheese, 25.7 million pounds of butter and 40.4 million pounds of whole milk powder. In total, CWT-assisted transactions will move the equivalent of 1.368 billion pounds of milk on a milkfat basis to customers in 35 countries on five continents. These totals are adjusted for contract cancellations.

Developed by NMPF, CWT’s export assistance program is supported on a voluntary basis by dairy farmers across the nation. By helping to move U.S. dairy products into world markets, CWT helps maintain and grow U.S. dairy farmers’ share of these expanding markets which, in turn, works to keep dairy farmer milk prices at reasonable levels.

Renewal of the CWT program for the period 2016-2018 is underway. All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are available on the CWT website... www.cwt.coop/membership. 



Brazil Soy Planting Nears Close

Brazilian soybean planting moved toward completion last week amid continued concerns about dry weather in Mato Grosso and in eastern Cerrado states like Bahia and Maranhao, according to AgRural, a local farm consultancy.

Brazilian soybean planting progressed 7 percentage points, reaching 88% complete as of Friday, with field work concentrated in the southernmost state of Rio Grande do Sul and the northeastern states of Bahia, Maranhao, Tocantins and Piaui, it said in a weekly report.

As has been the case for the entire season, planting is behind schedule. The five-year average progress for this stage of the Brazilian season is 94% complete

Hot, dry weather in the northeast is significantly delaying soybean planting and has already clipped productive potential there, said AgRural.

But, because of the size of production, dryness weather in Mato Grosso could perhaps have the biggest impact on production. The most pressing problems are in northern Mato Grosso where some farmers have gone as much as 30 days without rain. However, most crops have had the occasional shower over the last month, which will have preserved the crop's yield potential, AgRural said. In the south and the west of the state, rainfall has been more consistent.

In southern Brazil, the problem remains excess rainfall.

In Parana, the No. 2 state, the crop remains 95% planted with showers making it difficult for farmers to finish up sowing in central areas. Meanwhile, in the early-planting west of the state, heavy rain is causing instances of pods falling and aborted flowering, said the consultancy.

The weather issues prompted AgRural to trim its 2015-16 crop forecast from 100.2 million metric tons (mmt) to 99.7 mmt.



Land O'Lakes, Inc. and GENYOUth Join Together in Multi-Year Partnership

Today Land O'Lakes, Inc. announced a multi-year partnership with GENYOUth, a leading non-profit organization focused on empowering America's youth to achieve a healthier future by uniting partners, raising funds and uplifting the student voice. The collaboration with GENYOUth will accelerate youth leadership in nutrition and provide experiential opportunities to develop the skills necessary to champion wellness in U.S schools and communities. 

Through GENYOUth's flagship program Fuel Up to Play 60, the largest in-school health and wellness program in the country, Land O'Lakes will help students learn about where their food comes from by bringing the farm-to-fork story to life in schools and communities. In addition, Land O'Lakes and GENYOUth will collaborate with Fair Oaks Farms, the University of Minnesota's Land O'Lakes Center for Excellence, which is under construction, and the Minnesota Vikings to create experiential learning opportunities that inspire engagement, creativity and focus while introducing students to mentors who can support and grow their commitment to their own healthy futures.

"Our ability to bring public and private leaders together to support the growing challenges of nutrition and youth wellness enables us to uniquely reach and impact a younger generation," said Alexis Glick, CEO, GENYOUth. "With the support of Land O'Lakes, we will be able to develop resources and experiential opportunities to educate and empower youth to be life-long champions of wellness at school, at home or in the workplace."

Inspired by GENYOUth's commitment to empower youth to become stewards of their own healthy, high-achieving futures, Chris Policinski, president and chief executive officer of Land O'Lakes Inc. has been appointed to GENYOUth's distinguished board of directors, which represents leaders from across various public sector organizations and private sector companies.

"Recognized as a leader in the food and agriculture industry, Chris is an asset to our Board," said GENYOUth's Chairman Thomas Gallagher.  "His influence among the industry and his relationship-building skills will help raise awareness of GENYOUth and its mission, allowing us to reach more thought leaders and potential partners. A leader and a visionary, we look forward to working with Chris on accomplishing our goals."

Land O'Lakes, Inc. is one of America's premier member-owned cooperatives and a leading marketer of dairy-based food products for consumers, food service professionals and food manufacturers.

"Land O'Lakes is committed to a strong, empowered next generation, and we are pleased to strengthen our partnership with GENYOUth as part of the solution," Policinski said. "I am impressed with the work that GENYOUth has been able to accomplish in a few short years in partnership with the National Dairy Council and the National Football League."

Policinski noted the relationships board members had built with some of the most prestigious organizations and thought leaders across this country and said he looked forward to helping them continue to lead change in schools and communities across the country.

"With this partnership, we also look forward to helping the next generation learn more about where their food comes from and what it will take to feed nearly 10 billion people on the planet by 2050," Policinski added.