Monday April 25 Crop Progress + Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending April 24, 2016, temperatures averaged two to four degrees above normal in eastern areas, but near normal elsewhere, according to the USDA’s National Agricultural Statistics Service. Rainfall amounts of one to three inches were common across the eastern third of the State while western areas remained mostly dry. Corn planting was slow as producers waited for soils to dry from rains that have covered most of the State over the last two weeks. Pastures and winter wheat were responding to the improved soil moisture supplies. There were 2.6 days suitable for fieldwork. Topsoil moisture supplies rated 1 percent very short, 8 short, 79 adequate, and 12 surplus. Subsoil moisture supplies rated 1 percent very short, 11 short, 83 adequate, and 5 surplus.

Field Crops Report:
Corn planted was at 16 percent, near 13 last year, but ahead of 11 for the five-year average. Emerged was at 1 percent, ahead of 0 last year, but equal to average.

Sorghum planted was at 1 percent, equal to both last year and average.

Winter wheat condition rated 0 percent very poor, 4 poor, 36 fair, 50 good, and 10 excellent. Winter wheat jointed was at 56 percent, well ahead of 14 last year and 19 average.

Oats planted was at 85 percent, behind 92 last year, but ahead of 80 average. Emerged was at 54 percent, behind 63 last year but ahead of 41 average.

Livestock Report:
Cattle and calf conditions rated 0 percent very poor, 0 poor, 10 fair, 75 good, and 15 excellent. Calving was 90 percent complete, near 88 last year and 89 average. Cattle and calf death loss rated 1 percent heavy, 68 average, and 31 light.

Sheep and lamb conditions rated 0 percent very poor, 0 poor, 10 fair, 84 good, and 6 excellent. Sheep and lamb death loss rated 0 percent heavy, 75 average, and 25 light.

Hay and roughage supplies rated 0 percent very short, 5 short, 91 adequate, and 4 surplus.

Stock water supplies rated 1 percent very short, 4 short, 92 adequate, and 3 surplus.



Access the National publication for Crop Progress and Condition tables at: http://usda.mannlib.cornell.edu/usda/nass/CropProg/2010s/2016/CropProg-04-25-2016.pdf.

Access the High Plains Region Climate Center for Temperature and Precipitation Maps at: http://www.hprcc.unl.edu/maps.php?map=ACISClimateMaps.

Access the U.S. Drought Monitor at:
http://droughtmonitor.unl.edu/Home/StateDroughtMonitor.aspx?NE.



IOWA CROP PROGRESS REPORT

Rain slowed planting progress in much of Iowa during the week ending April 24, 2016, according to the USDA, National Agricultural Statistics Service. Statewide there were 3.6 days suitable for fieldwork. Other activities for the week included tillage, anhydrous applications, and planting preparations.

Topsoil moisture levels rated 0 percent very short, 5 percent short, 89 percent adequate and 6 percent surplus. Subsoil moisture levels rated 0 percent very short, 3 percent short, 90 percent adequate and 7 percent surplus.

Forty percent of the corn acreage has been planted, 6 days ahead of last year and 11 days ahead of the 5-year average. Farmers in north central, central, and southeast Iowa have already planted over half their corn crop. Ninety-two percent of the State’s oat crop has been planted, one week ahead of last year and more than 2 weeks ahead of average. Oats emerged reached 40 percent, moving ahead of average for the first time this year. There were scattered reports of soybeans being planted.

Pasture condition rated 61 percent good to excellent, with pastures described as green and growing. Livestock conditions were reported as good, although some feedlots were back to muddy conditions due to the rain.



IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry J. Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship

A very slow moving storm system brought rain to far western Iowa on Sunday (17th) night and finally exited the state on Thursday (21st) afternoon. Heaviest rains with this system fell over far western Iowa, particularly on Wednesday (20th). Dry weather prevailed statewide on Friday (22nd) and Saturday (23rd) before showers and thunderstorms moved into western Iowa Sunday (24th) morning. Thunderstorms also redeveloped over the west one-half of Iowa late Sunday afternoon and evening, a few of which brought hail and high winds. However, this last round of storms came too late to be reflected in this reporting week’s statistics. Weekly rain totals varied from only 0.05 inches at Marion to 3.88 inches at Kennebec in Monona County. There was a statewide average of 1.07 inches of rain for the week, slightly above the normal for the period of 0.89 inches. Monday (18th) was the warmest day of the reporting week across eastern Iowa and Sunday (24th) was the warmest over the west. In between these two very warm days, the remainder of the week brought temperatures near to slightly above seasonal normals. Temperature extremes for the week varied from highs of 83 degrees at Muscatine on Monday (18th) and 84 degrees at Glenwood on Sunday (24th) while Mason City recorded the lowest temperature at 35 degrees on Saturday (23rd) morning. Temperatures for the week as a whole averaged 6.1 degrees above normal. Soil temperatures at the four inch depth were mostly averaging in the upper fifties across Iowa as of Sunday (24th).



USDA Weekly Crop Progress - Most Progress Numbers Lean Bearish

The nation's farmers are wasting no time getting into the field this planting season with 30% of the corn already planted as of April 24, according to USDA's latest weekly Crop Progress report. That's well ahead of last year and the five-year average of 16%.

Corn is 5% emerged, compared to 2% last year and a five-year average of 4%.

Soybean planting is 3% complete, compared to 2% last year and a five-year average of 2%. 

Spring wheat is 42% planted and 8% emerged, compared with 50% and 8% last year and 28% and 7% on average. 

Winter wheat is 26% headed, compared to 12% last week, 25% last year and 24% on average. Winter wheat condition improved slightly at to 59% good to excellent compared to 57% last week.

Cotton is 10% planted, compared to 7% last week, 9% last year and a 13% average. Rice is 62% planted and 38% emerged, compared to 48% and 19% last week, 37% and 23% last year, and 45% and 29% on average.

Sorghum is 20% planted compared to 16% last week, 23% last year and a 24% average. Oats are 71% planted and 41% emerged, compared to 56% and 30% last week, 68% and 40% last year and 57% and 40% averages. Barley is 45% planted and 15% emerged, compared to 33% and NA last week, 52% and 15% last year, and 36% and 9% averages.



Silage Conference: What to Grow and How to Store and Price It 

An abundance of new information on an age-old feed has led extension specialists from Iowa State University and University of Nebraska—Lincoln to offer a one-day Silage for Beef Cattle Conference June 17. conference for cattle producers, nutrition consultants and extension personnel. The conference will capitalize on the resurgence of silage in beef diets, said Galen Erickson, beef feedlot extension specialist with UNL.

“Corn silage appears to be very economical in beef growing and finishing situations, and we know many people use it,” he said. “If it is going to be used, however, it’s important to know the specifics about types, storage and pricing, and this conference will tackle all those issues.”

The speaker lineup includes university experts from UNL, Iowa State, and Kansas State University (KSU), and from program sponsor Lallemand Animal Nutrition. The agenda features eight presentation sessions and a panel discussion, and will be held at the August N. Christenson Research and Education Building at the UNL Agricultural Research and Development Center (ARDC) near Mead, NE. The conference is approved for 5 CEUs from the American Registry of Professional Animal Scientists (ARPAS).

The conference begins with registration at 8:15 a.m., will adjourn by 4 p.m. and is free for those preregistered by Monday, June 13. Otherwise, the fee is $30. The conference brochure has agenda information, directions to the location, contacts for more information and a fillable registration form in pdf format.

“Because we know there’s a great deal of interest in this topic, and we know not everyone can travel to attend this conference, we’re also offering a web viewing option for the entire day available to people with internet access from anywhere around the world,” Erickson said. “In addition to this streaming option, we plan to capture shorter segments that highlight the take-home points and provide them after the conference, and we’ll provide a proceedings of all the material presented during the day.”

UNL and ISU have provided joint beef nutrition programming for years, and working together to offer this conference was a logical choice, said Dan Loy, Iowa Beef Center director at Iowa State.

 “This is a great opportunity for us to bring current research information to the cattle industry in Nebraska, Iowa and beyond,” Loy said. “Offering both an on-site location and an online streaming opportunity increases the reach of this information to a national and international audience.”

Erickson said Lallemand Animal Nutrition approached the team about working with them to sponsor a meeting focused on silage, and its financial support makes it possible for preregistered attendees to do so at no cost.

Erickson said it’s important for producers to understand how to select proper hybrids for silage, know when to put up silage and know how to store silage to minimize shrink.

 “Optimizing both the amount fed and silage in combination with which other ingredients is critical in determining whether silage is an economical choice,” Erickson said. “This conference will provide that information, as well as tools for pricing silage.”

 The conference speakers, their affiliation and presentation topics follow:
    Bob Charley, Lallemand Animal Nutrition, “Corn Silage Fermentation Process”
    Keith Bolsen, KSU, “Silage Safety, Shrink, and Methods to Control Losses”
    Renato Schmidt, Lallemand Animal Nutrition, “Impact of Silage Inoculant”
    Jim MacDonald, UNL, “Optimizing Corn Silage Harvest for Quality and Yield”
    Dan Loy, Iowa State, “Evaluation of Silages, and What a Feed Test Means for Good vs. Bad Silage”
    Andrea Watson, UNL, “Use of Corn Silage in Growing Programs and Protein Considerations”
    Erickson and Henry Hilscher, UNL, “Feeding Programs for Silage, Silage Hybrid, and Harvest Time Impact on Performance”
    Terry Klopfenstein and Hilscher, UNL, “Economics of Silage Use and Proper Pricing”

For more information, contact Erickson at 402-472-6402 or Loy at 515-294-1058.



Reservoir Evaluation Project identifies possible benefits of 10 potential sites

The Lower Elkhorn Natural Resources District (LENRD) recently received a report from their Reservoir Evaluation Project.  The purpose of the project was to evaluate ten potential reservoir sites in northeast Nebraska.  The sites have been identified as providing possible benefits including flood control, recreation, stream flow augmentation, recharge, and water quality.  Through the evaluation process, the LENRD has obtained more information about each site, which will allow them to expand studies in some areas, if desired.

LENRD General Manager, Mike Sousek, said, “This was simply a study comparing ideas against other ideas, not a proposal to build any particular structure.”  He continued, “We partnered with 3 downstream NRDs and looked at a much larger area than we usually do because of the nature of some of the benefits that may be realized to downstream stakeholders.  These financial partners also saved local taxpayers from paying for the full cost of the evaluation.”

The LENRD has 12 responsibilities given to them by the State.  The goal of the evaluation was to identify what each structure could potentially do to meet those responsibilities.  The responsibilities can be found on the district’s website: www.lenrd.org/responsibilities/.

Sousek said, “In an attempt to keep local control the LENRD must explore ideas.  If the district isn’t going to actively manage groundwater, the decisions that will be forced upon this district in the future will be made by those who live outside the district.  Change is happening, we have the opportunity to create the change that we want, or accept the changes that are handed down to us.”

He added, “We encourage interested parties to please attend our meetings and learn about the issues the district is facing.  As the demand for water continues to increase, this district will become involved with long-term sustainability issues, not just for our district, but for eastern Nebraska.  We are all in this together and the LENRD will need to participate in this effort.  The LENRD does have opportunities to capture water and recharge aquifers or use it for stream augmentation, capturing it when it is not needed and using it when the demand is present.  This study will help the board in determining what projects are best suited to meet our goals and help them decide where is the best place to spend tax dollars to protect the overall water system we all depend on.”

The next meeting of the LENRD Board of Directors is Thursday, April 28th at 7:30 p.m. in the Lifelong Learning Center on the campus of Northeast Community College in Norfolk.  The board meetings are open to the public.

For more information and a full report of the evaluation project, visit the district’s website:  www.lenrd.org/projects/.



PRESEASON HAY EQUIPMENT MAINTENANCE
Bruce Anderson, NE Extension Forage Specialist

               Looking for something to do during rainy days or downtime?  Preseason maintenance of hay equipment now might save you time and money in a couple weeks.

               Hay equipment needs proper maintenance to perform well.  Preseason maintenance also can help prevent costly downtime when delays can be very costly.   Let's briefly review some important maintenance steps.

               First off, inspect, lubricate, and service all power driven areas such as belts, bearings, chains, and gears.  Set tension on belts and chains as well.  For sicklebar headers, check, sharpen, or replace cutterbar sections and adjust wear plates, hold-down clips, and guards.  Make sure your cutterbar has proper knife register.  On disc mowers, replace knives and rotate or replace worn turtles over the knives.

               Conditioning rollers often are overlooked.  Look for uneven wear and adjust the roll gap, roll timing, and roll pressure for your crop.

               On round balers, inspect belts, chains, and slats or rollers frequently for wear.  Trim frayed edges and repair belts as needed to maintain uniform tension.  When not in use, keep belts clean and release belt tension.

               Rectangular balers need plunger knife clearance and plunger alignment checked.  Also inspect the tying mechanism and adjust it as needed.  Pick-up teeth on balers and on rakes frequently are broken or bent.  Replace defective teeth and adjust height if necessary.

               Also, be sure you have replacement parts on hand of frequently broken or replaced items.  And most important of all, review your owners manual to identify recommended maintenance procedures and proper settings.

               Take a little time now and you will reduce down time later.



Farm Lending Activity Remains Robust
By Nathan Kauffman, Assistant Vice President and Omaha Branch Executive

Farm income remained suppressed in the first quarter of 2016, keeping farm lending activity high. Although non-real estate farm loan volumes declined modestly from a year ago, the number of loans originated increased slightly and the volume of loans remained near record highs. Large loans used to finance operating expenses remained the primary driver of demand for non-real estate loans. Although returns at agricultural banks generally remained strong, delinquency rates on farm loans ticked up, and loan repayment rates dipped, as persistently weak profit margins in the farm sector continued to intensify the challenge of maintaining adequate cash flow.

Section A – First Quarter Survey of Terms of Bank Lending to Farmers
Agricultural lending activity remained strong in the first quarter of 2016. The national Survey of Terms of Bank Lending to Farmers, conducted the first full week of February, indicated the total volume of non-real estate farm loans originated in the quarter declined 13 percent from a year ago. However, the total volume of lending in the first quarter was the sixth highest since 2000, and more than 20 percent higher than the average of the past 15 years. Moreover, despite a modest decline in the volume of farm loans, the number of farm loans originated for non-real estate purposes increased 4 percent from a year ago.

The volume of large non-real estate farm loans continued to have a significant effect on changes in farm lending. In the first quarter, loans larger than $100,000 accounted for 77 percent of the total volume of non-real estate farm loans, up from 72 percent in 2011 and 67 percent in 2006. The increasing share of large loans could be due to persistently high input costs or farm expansion, but may also indicate producers have become increasingly dependent on financing amid tighter profit margins in the farm sector.

Alongside a rising share of large farm loans and weaker farm income, the composition of collateral tied to large farm loans also has shifted somewhat. In the first quarter, farm real estate accounted for 22 percent of collateral on non-real estate loans larger than $250,000, up from 13 percent two years ago. In contrast, farm real estate used as collateral on loans less than $250,000 consistently has hovered near 10 percent. As farm incomes have softened, the increasing use of farm real estate as collateral may indicate that bankers have sought to improve their borrowing base and exposure to risk from reduced cash flow.

Interest rates on non-real estate farm loans also inched up in the first quarter. Interest rates for operating expenses and feeder livestock, which accounted for nearly 75 percent of non-real estate loan volume, increased slightly, but were similar to previous years. Interest rates for other livestock and farm machinery increased 52 and 34 basis points, respectively. Some of the increase in interest rates can be attributed to the high percentage of variable interest rate loans (nearly 68 percent) reacting to minor market movements. However, some of the increase also may be attributed to banks’ risk pricing methods on loans for depreciable intermediate assets in a lean farm economy.

Section B - Fourth Quarter Call Report
In the fourth quarter of 2015, total farm debt at commercial banks continued to rise, but at a somewhat slower pace. Specifically, the level of outstanding debt in the farm sector increased about 7 percent from the previous year, marking the 18th consecutive quarter of increased farm debt financed by commercial banks. However, the year-over-year increase in the fourth quarter was smaller than in the prior four quarters.

Farm lending trended higher during years of strong farm income, but lending also has increased in recent years as income has softened. For example, farm debt rose nearly 15 percent from the first quarter of 2012 to the fourth quarter of 2013 when farm income was near historical highs. Nevertheless, farm debt since the first quarter of 2014 has expanded about 20 percent even as income has dropped sharply. The increase in debt in both environments suggests the current amount of outstanding farm debt at commercial banks represents both capital purchases made during periods of optimistic growth and, more recently, debt to cover short-term financing needs as profit margins have narrowed.

Despite the increased lending activity, the performance of agricultural banks softened in the fourth quarter even as other small banks became slightly more profitable. Returns on assets, a typical bank performance measure, dipped below 1 percent at agricultural banks for the first time since 2010. Additionally, the difference between return on assets at agricultural banks and the same measure at other small banks has narrowed significantly.

The narrower gap between returns at agricultural banks and other small banks was consistent with recent trends in delinquency rates on farm loans. In the fourth quarter, delinquency rates on both farm real estate loans and farm non-real estate loans edged up whereas delinquency rates on all loans, agricultural loans included, trended lower. Despite the recent uptick in delinquencies on farm loans, delinquency rates remained well below the average of the past 15 years. Nevertheless, a persistently weak farm economy may force a greater number of highly leveraged producers into default, putting further pressure on profits for banks with a portfolio concentrated in agriculture.

Section C – Fourth Quarter Regional Agricultural Data
Consistent with fourth quarter call report data, Federal Reserve surveys of agricultural credit conditions generally pointed to strong demand for non-real estate farm loans. Of the surveys conducted in districts with prominent agricultural sectors, only the Dallas district reported a decrease in demand for non-real estate farm loans in the fourth quarter. The Minneapolis and Chicago districts, which generally have higher shares of crop production relative to livestock production, recorded the highest and second highest increases in fourth quarter loan demand since 1991. Similarly, loan demand in the Kansas City district increased for the 10th consecutive quarter and in 11 of the last 15 quarters in the St. Louis district.

Demand for loan renewals and extensions also increased in the fourth quarter. The surveys of each reporting district showed sharp increases in demand for loan renewals and extensions, while repayment rates continued to weaken. The increase in loan renewals and extensions, and softer repayment rates, most likely were due to reduced cash flow and short-term liquidity as some borrowers also sought to restructure existing loans.

The weakening farm economy continued to weigh on farmland values and cash rents in the fourth quarter. The value of nonirrigated cropland in most states within the Federal Reserve districts of Chicago, Dallas, Kansas City and Minneapolis declined slightly. However, nonirrigated cropland values in Oklahoma, Texas and southern Wisconsin increased, but only slightly. Cash rental rates for farmland also declined in the Dallas, Kansas City and Minneapolis districts as profit margins remained weak.

Conclusion
The pace of farm lending in the first quarter remained relatively brisk. Agricultural credit conditions deteriorated somewhat as repayment rates declined and delinquency rates picked up slightly alongside reduced farm income. Banks appeared to be taking proactive measures to reduce risk by increasing the amount of farm real estate used to collateralize large non-real estate loans and raising interest rates slightly. Though farmland values have remained relatively strong, a poor outlook for cash flow could continue to pressure a larger share of farm borrowers in the coming year, particularly those most highly leveraged.



ARS Lincoln Research Leads to Whiter Wheat

Getting rid of gray discoloring in foods such as fresh noodles, breads, and refrigerated biscuits is now possible, thanks to a new white hard wheat breeding line developed by USDA scientists in Lincoln.

Plant geneticist Robert Graybosch, research leader at the USDA Agricultural Research Service’s (ARS) Grain, Forage, and Bioenergy Research Unit in Lincoln, developed a wheat that has no polyphenol oxidase—an enzyme present in all plants that causes discoloring. The enzyme causes browning in sliced apples, black spots in cut avocados, and dark marks on banana peels.

“A lot of U.S. white wheats still have high levels of polyphenol oxidase,” Graybosch says. “To have a successful white wheat for both the export market and the domestic market, milling companies want low or no polyphenol oxidase.”

Graybosch, who has a joint appointment as an adjunct professor in the UNL Department of Agronomy and Horticulture,  has been studying the polyphenol oxidase trait in wheat for the last 15 years, investigating numerous samples of white wheat. Collaborating with the University of Nebraska–Lincoln and Montana State University, in 2000 Graybosch screened more than 3,000 wheat lines for polyphenol oxidase and then mated wheats with different forms of the genes that produced this enzyme.

The new wheat line, 070R1074, was developed by crossing two Australian wheats entered into the ARS National Small Grains Collection in the 1930s.

“For 70 years, these two Australian wheats have been in the germplasm collection with this trait of interest and economic importance that the milling industry and exporters need and want,” Graybosch said. “This demonstrates the value of this diversified wheat collection. You don’t always know what you have until you do something with it.”

In their research, Graybosch and his colleagues discovered naturally occurring genetic mutations in the new wheat line, which resulted in nearly complete loss of polyphenol oxidase activity.

The newly developed line used to charaterize the gene and enzyme activity is a spring wheat and not suitable for cultivation in Nebraska, where winter wheat is grown.

"We are working to introgress the trait into winter wheat backgrounds, and have the first winter wheats for selection in the field at the ARDC near Mead," Graybosch said.

Although some low-polyphenol oxidase hard winter white wheats have already been developed, many U.S. white wheats still have high levels of polyphenol oxidase, according to Graybosch. High polyphenol oxidase levels make U.S. producers less competitive in domestic and export markets.

In Asia, hard white wheat is popular for making products such as fresh noodles, and white whole grain breads are gaining favor in the United States. To be competitive, U.S. milling companies need wheats with low or no polyphenol oxidase.
Partial funding of this research was made possible through a grant from the Nebraska Wheat Board.

Read more about this work in the April 2016 issue of AgResearch, an online magazine about USDA Research. ARS is USDA’s principal intramural scientific research agency.



Trans-Pacific Partnership: New Opportunities for U.S. Agriculture in Vietnam

Secretary Vilsack traveled to Vietnam today to meet with his counterparts from the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade, among others, to discuss the details of the Trans-Pacific Partnership (TPP) agreement.

Vietnam remains one of the fastest-growing markets for U.S. food and agricultural products, with U.S. exports totaling $2.3 billion in 2015. That's a 357 percent increase from 2007, the year Vietnam joined the World Trade Organization (WTO). Vietnam now ranks as the United States' 11th-largest agricultural export market, with top products including cotton, tree nuts, soybeans, and dairy.

Vietnam is a member of the ASEAN Free Trade Zone and has concluded free trade agreements with a number of other countries, including key U.S. competitors such as Australia, Chile, Korea, and New Zealand. In addition to being part of the TPP, Vietnam is in the process of negotiating agreements with China, the European Union, Hong Kong, and Israel. In these negotiations, Vietnam has agreed to tariff reductions on many agricultural products, potentially putting U.S. exporters at a disadvantage.

Vietnam's average tariff on agricultural products is 16 percent, while the average U.S. tariff is five percent. Under the TPP, Vietnam will reduce and eventually eliminate tariffs across a broad range of food and agricultural products, helping put U.S. exports on a level playing field and giving the United States a leg up on non-TPP competitors. In addition to addressing tariffs, the TPP agreement also addresses non-tariff trade barriers, including sanitary and phytosanitary measures.

Livestock Products
Beef: The United States exported $32.3 million of beef and beef products to Vietnam in 2015. Under the TPP agreement, all of Vietnam's tariffs on beef and beef products, currently as high as 34 percent, will be eliminated in 3-8 years. Tariffs on fresh and frozen beef muscle cuts will be eliminated in three years.

Dairy: In 2015, the United States exported $168 million of dairy products to Vietnam, more than three times the value a decade ago. All of Vietnam's tariffs on dairy products, currently as high as 20 percent, will be eliminated within five years. Tariffs on cheese, milk powder, and whey will be eliminated immediately.

Pork: The United States exported $3.8 million of pork and pork products to Vietnam in 2015. As a large consumer of pork, Vietnam provides significant potential for U.S. exporters. Under the TPP agreement, Vietnam will eliminate tariffs on pork and pork products, currently as high as 30 percent, in 5-10 years. Tariffs on frozen cuts and shoulders will be eliminated in eight years and on preserved pork, fresh pork cuts and shoulders, and fresh and frozen carcasses in 10 years.

Poultry and Eggs: The United States exported nearly $100 million of poultry and poultry products to Vietnam in 2015. Vietnam's tariffs on poultry and poultry meat, currently as high as 40 percent, will be eliminated within 13 years. This includes tariffs on frozen chicken cuts and offal, which will be eliminated in 11 years. Vietnam will eliminate in-quota tariffs for eggs within its WTO tariff-rate quota (TRQ) in six years. According to Vietnam's WTO commitments, this TRQ will continue to grow in perpetuity by five percent per year.

Horticultural Products
Fruit: The United States exported $58.6 million in fresh fruit to Vietnam in 2015. Under the TPP agreement, Vietnam's tariffs on fresh fruits, which are currently as high as 30 percent, will be eliminated within four years.

The United States exported $24.2 million of processed fruit products, including juices, to Vietnam in 2015. Under the TPP agreement, Vietnam's tariffs on processed fruit products, currently as high as 40 percent, will be eliminated within eight years.

Tree Nuts: The United States exported more than $274 million of tree nuts to Vietnam in 2015. Vietnam's tariffs on tree nuts, currently as high as 35 percent, will be eliminated in 3-6 years.

Vegetables and Pulses: The United States exported $4 million of fresh and processed vegetables (excluding potatoes) to Vietnam in 2015. Vietnam will eliminate tariffs on all fresh and processed vegetables, currently as high as 40 percent, in 11 years or less, with tariffs on many products eliminated immediately.

Potatoes: The United States exported $5.1 million of potatoes and potato products to Vietnam in 2015. Under the TPP agreement, Vietnam will eliminate tariffs on all potatoes and potato products, currently as high as 34 percent, within six years. It will eliminate the 13-percent tariff on frozen French fries in four years.

Grains and Oilseeds
Barley: The United States did not export barley to Vietnam in 2015. Under the TPP agreement, Vietnam's tariff on barley will be locked in at zero percent and its 15-percent tariff on milled barley will be eliminated in four years.

Corn: The United States exported $190 million of corn and corn products to Vietnam in 2015. Under the TPP, all of Vietnam's tariffs on corn and corn products, currently as high as 30 percent, will be eliminated in 4-7 years.

Peanuts: The United States exported $24 million of peanuts and peanut products to Vietnam in 2015. Under the TPP agreement, Vietnam's tariffs on peanuts and peanut products, currently as high as 30 percent, will be eliminated within eight years.

Rice: The United States exported $140,000 of rice and rice products to Vietnam in 2015. Under the TPP, Vietnam will immediately eliminate its current 40-percent tariff on rice and will eliminate tariffs on rice products, currently as high as 35 percent, within eight years.

Soybeans: The United States exported more than $407 million of soybeans and soybean products to Vietnam in 2015. The current duty-free access for soybeans will continue under the TPP. Vietnam's tariffs on soybean products, currently as high as 33 percent, will be eliminated in 3-11 years.

Wheat: The United States exported roughly $67 million of wheat and wheat products to Vietnam in 2015. Vietnam's tariffs on wheat and wheat products, currently as high as 35 percent, will be eliminated within four years.

Other Products
Cotton: Vietnam was the United States' second-largest cotton market in 2015, with exports reaching a record $624 million. Vietnam's large and growing textiles industry offers significant opportunities for U.S. cotton exporters. Under the TPP agreement, all of Vietnam's tariffs on cotton, currently as high as 10 percent, will be eliminated within four years.

Processed Food: In 2015, the United States exported $467 million of processed food to Vietnam. Under the TPP agreement, nearly all of Vietnam's tariffs on processed products, currently as high as 55 percent, will be eliminated within 12 years. Tariffs on products such as cookies, crackers, biscuits, breads, and starches will be eliminated in eight years.

Tobacco: Vietnam will eliminate all tariffs on tobacco, which are currently as high as 135 percent. For manufactured tobacco products, Vietnam will eliminate tariffs in 16 years. For unmanufactured tobacco, Vietnam will create a 500-ton transitional tariff rate quota (TRQ) that will grow by five percent each year, with in-quota tariff rates eliminated in 11 years and out-of-quota tariff rates eliminated in 21 years.



CWT Assists with 7.8 Million Pounds of Cheese and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) has accepted 12 requests for export assistance from Dairy Farmers of America, Michigan Milk Producers Association, Northwest Dairy Association (Darigold) and Tillamook County Creamery Association who have contracts to sell 2.465 million pounds (1,118 metric tons) of Cheddar and Gouda cheese and 5.307 million pounds (2,407 metric tons) of whole milk powder to customers in Asia, the Middle East, North Africa and South America. The product has been contracted for delivery in the period from April through October 2016.

So far this year, CWT has assisted member cooperatives who have contracts to sell 17.108 million pounds of American-type cheeses, 7.716 million pounds of butter (82% milkfat) and 20.203 million pounds of whole milk powder to fifteen countries on five continents. The sales are the equivalent of 479.003 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program, in the long-term, helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Dairy Groups Thank Senators for Urging Action on Agricultural Issues in Trade Agreement with Europe

The dairy industry today praised a bipartisan group of 26 senators for urging U.S. negotiators to address the needs of agriculture – including key dairy issues – in any free trade agreement with the European Union.

In a letter to U.S. Trade Representative Michael Froman, the senators noted that the United States’ share of the European agricultural import market is shrinking due to both tariff and non-tariff trade barriers.

“A final [trade] agreement that does not include a strong framework for agriculture could have a negative impact on Congressional support for this deal,” the senators said.

Among other agricultural issues, the letter singled out the need to address restrictive certification requirements on U.S. dairy exports, as well as the EU’s efforts to capture the sole use of food names long considered generic in this country. Decades after parmesan, feta and asiago became household favorites in the United States, Europe now argues these names can only appear on cheeses produced in Italy and Greece, blocking U.S. sales of the products to the EU and increasingly affecting sales to various foreign markets. In addition, the EU is seeking a leg up on U.S. food competitors by insisting that the U.S. government shoulder the costs to enforce protection for hundreds of EU geographical indications in the U.S. domestic market.

The senators cited two earlier letters that urged negotiators to oppose European restrictions on the use of common food names. The EU’s actions are undermining both current free trade agreements and those under negotiations, they said. They added that the concerns cited in those letters had not been addressed so far in negotiations over the U.S.-EU trade agreement, known officially as the Transatlantic Trade and Investment Partnership (T-TIP).

Jim Mulhern, president and CEO of the National Milk Producers Federation, thanked the senators for highlighting the need to address agriculture concerns, and especially dairy issues, in the T-TIP negotiations.

“In 2015, we had a record $12 billion agricultural trade deficit with Europe, due largely to barriers erected specifically to limit exports of dairy foods and other U.S. farm products,” Mulhern said. “Any successful European free trade agreement must break down those barriers. The U.S. needs to soundly reject the EU’s desire to impose new barriers to competition around the world and to create taxpayer-funded advantages for its producers in our market. We should be using T-TIP to level the playing field.”

Tom Suber, president of the U.S. Dairy Export Council, said that the opportunity to grow dairy exports and re-balance the two-way trade deficit should be a top priority in T-TIP negotiations going forward. “U.S. negotiators should not conclude a trade agreement with the Europeans without addressing the serious European trade barriers facing the U.S. dairy industry, including both restrictive certification requirements and restrictions on generic cheese names,” he said.

“Names like feta and parmesan belong to everyone, not just a small group of producers in Europe,” added Connie Tipton, president and CEO of the International Dairy Foods Association. “The EU’s bid to gain exclusive rights to these names is totally unjustified, and the Senate letter is right to include this issue as one that must be addressed in any free trade agreement with the Europeans.”

Both the United States and the European Union have pledged to conclude T-TIP negotiations this year. All three dairy organizations are very concerned that these critical dairy issues will not be appropriately resolved within that timeline.