Thursday April 21 Ag News

 Rural Mainstreet Economy Remains Weak for April: Almost One-Third of Bank CEOs Support April Fed Rate Hike

The Creighton University Rural Mainstreet Index for April fell unexpectedly from March’s very weak reading, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.  

Overall: After increasing for two straight months, the Rural Mainstreet Index (RMI), which ranges between 0 and 100, sank to 38.2 from March’s 40.2. 

“This is the eighth straight month the overall index has moved below growth neutral.  Even though agriculture and energy commodity prices have increased recently, they remain well below prices 12 months earlier,” ," said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “Compared to 12 months earlier, prices for farm products are down by 16 percent and energy products are 8 percent lower.”

Farming and ranching: The farmland and ranchland price index for April rose to 26.7 from 20.2 in March. This is the 29th straight month the index has moved below growth neutral.

As in previous months, there is a great deal of variation across the region in the direction and magnitude of farmland prices, with prices growing in some portions of the region.

Bankers reported an average cash rent per acre for 2016 of $211 which is down by 7 percent from April of last year. But bankers indicated that there would be significant variation among farmers. Jeffrey Gerhart, chairman of Bank of Newman Grove, Newman Grove, Nebraska, said, “Cash flow is king and will continue to be the difference maker for producers. Those who manage it well will benefit, those who don't manage it well will not.”

The April farm equipment-sales index climbed to a frail 11.1 from March’s record low 6.7.  “Weakness in farm income and low agriculture commodity prices continue to constrain the sale of agriculture equipment across the region. Reductions in farm prices have negatively affected the agriculture equipment dealers and manufacturers of farm equipment in the region,” said Goss.

Nebraska: The Nebraska RMI for April sank to 40.5 from 48.9 in March. The state’s farmland-price index grew to 42.8 from March’s 38.0. Nebraska’s new-hiring index climbed to 57.3 from 56.2 in March.

Iowa: The April RMI for Iowa slumped to 41.2 from March’s 50.2. Iowa’s farmland-price index for April climbed to 45.6 from 39.1 in March. Iowa’s new-hiring index for April dropped slightly to 56.4 from 56.6 in March.

This month bankers were asked to identify the greatest challenge facing their banking operations over the next 5 years. More 43.5 percent reported rising regulatory costs was the biggest threat.  However, David Steffensmeier, president of the First National Bank in Beemer, Nebraska, said, “Low farm income and plummeting farmland values rank equally (as a threat).”

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 Farm Bureau Says Legislative Session Yields Wins for Ag, Work Remains on Tax Reform

In a legislative session where Nebraska Farm Bureau was able to work with state lawmakers to yield wins for agriculture, work still remains on the biggest prize sought by farmers and ranchers; the implementation of structural changes to better balance Nebraska’s overall tax burden and reduce the overreliance on property taxes to fund Nebraska schools, said Steve Nelson, Nebraska Farm Bureau president, April 21.

“We know the property tax issue won’t be solved overnight. It’s a process. We spent a good part of the session laying that foundation and we’re committed to building the coalitions and partnerships needed to get us where Nebraska needs to be on property taxes,” said Nelson.

Numerous ideas related to addressing the property tax issue were introduced during the 2016 legislative session which came to a close April 20. Ultimately, the Legislature passed and Gov. Pete Ricketts signed LB 958 into law. The measure adds another $20 million to the state’s property tax credit program specifically targeted to providing relief to agricultural landowners; those who have experienced the largest property tax increases over the last decade.

In addition to the increase in property tax credit dollars, some agriculture landowners will also benefit from the passage and signing of LB 959. The bill contains provisions eliminating the minimum levy penalty which reduces state aid to school districts with levies less than 95 cents. The change is expected to send $8.2 million in additional state aid out to rural schools, many of which currently receive no state equalization aid.

“We appreciate the Legislature and the Governor’s efforts on property taxes and school funding, but more must be done when it comes to the property tax issue,” said Nelson. “We’re already looking to 2017 and continuing the push for major reforms to better balance our tax structure.”

Outside of the property tax issue, several other key Farm Bureau priorities were adopted by lawmakers.

The passage of the Farm Bureau supported LB 176 is expected to help grow opportunities in Nebraska pork production. LB 176 eliminated a ban preventing Nebraska-based pork processors from owning hogs in the state. Banning processor ownership of hogs had indirectly eliminated opportunities for Nebraska farmers to feed and care for processor owned pigs in Nebraska. The practice is common in other states. Nebraska was the last in the U.S. to prohibit pork processors from owning hogs.

“From our perspective, LB 176 was about creating opportunities for farm families to partner with Nebraska pork processors to produce pigs here at home. Nebraska’s pork sector has struggled to keep pace with neighboring states because we had ultimately limited these types of opportunities for both parties,” said Nelson.

Farm Bureau’s key transportation bills also made it to the finish line in 2016 with the passage of both LB 960 and LB 977.

LB 960 creates three new road infrastructure programs. One to accelerate capital improvement projects as determined by the State Department of Roads, another to provide matching dollars for repair and placement of county bridges and a final program targeting infrastructure monies to attract and support new businesses and business expansion. LB 960 funds the programs using a one-time draw of $50 million from the state’s cash reserve fund and another $400 million over time from fuel taxes generated by the gas tax increase which passed in 2015.

LB 977 broadens the scope of agriculture machinery and equipment which qualifies for exemptions from weight and load limitations on state highways and county roads. The expanded exemptions include farmer owned mixer feed trucks and trucks equipped to spread or inject livestock manure. Ag machinery and equipment will still be subject to posted weight limitations on bridges and culverts. Counties and local authorities will still retain the right to impose weight restrictions through ordinance or resolutions.

“Our members had been wanting to see funding for county bridges addressed and LB 960 does that. LB 977 cleaned up some issues regarding how we treat trucks and farm implements that have been modified for livestock feeding and manure spreading which is important to our livestock sector,” said Nelson.

While not a Farm Bureau priority for the session, discussion about whether there is a need to modify the state’s constitution with “Right to Farm” language became an issue with a proposal to put such language before Nebraska voters. The measure (LR 378CA) advanced from the Agriculture Committee but stalled during first round floor debate.

“The Legislature’s action will give our members more time to chew on the whole concept of “Right to Farm.” There’s a lot more to this issue than meets the eye when we’re talking about modifying the Constitution,” said Nelson.



BigIron Welcomes Tim Kipper to Eastern Nebraska

BigIron Auctions, a rapidly expanding onsite and online unreserved auction company, has announced the hire of Tim Kipper as district manager for eastern Nebraska.

Kipper is an award-winning top sales producer with over 10 years of experience in direct sales and sales management.

“As a BigIron district manager, I look forward to motivating our sales representatives and helping them reach their growth potential,” Kipper said.

“We are fortunate to have someone like Tim on our BigIron Team,” said Joel Marreel, BigIron regional manager. “His auction and professional background are second to none, and we look forward to positive and continued growth with his leadership.”

Kipper resides in Lincoln, Nebraska. He has been in sales and branch management roles with Denver Mattress Factory and most recently with Thrasher, where he was recognized as the 2015 top sales producer. Kipper also has over three years of online auction experience related to agriculture and construction equipment.

Kipper will use his communication skills to build strong, long-lasting relationships in his new role as a BigIron district manager.

“I am excited to learn about BigIron and to help the team grow,” Kipper said.



ICA names Environmental Stewardship Awards Program Winners

The Iowa Cattlemen’s Association has named AJ and Kellie Blair, Dayton, as winners of the 2016 Iowa Environmental Stewardship Award Program (ESAP). The Blairs show a dedication to the environment on their modern, diversified livestock farm, and have added cattle to the farm because of the conservation benefits they have to offer.

AJ and Kellie are now the 4th generation on the Blair family farm. Both are graduates of Iowa State University, with Kellie’s degree in agronomy and forestry and AJ’s degree in agricultural business. The couple was married in February 2007 and now have two young children, Wyatt and Charlotte. In 2010, they brought cattle back to the farm with a 400 head monoslope finishing barn and in 2014, they began building a herd of SimAngus cows, as well.

The Blairs have a holistic, systems approach to reaching their goals, building on improvements until the entire process makes sense from a farm management, environmental and financial standpoint. “It’s a long-term process. Every year we do a little more. It’s hard to know what components are helping with the year to year variables we face, but we try to make changes that will be a benefit in the long-run,” explains Kellie.

Every aspect of the Blair farm works in more than one way to improve the farm, grow more food more efficiently, and help maintain profitability even in tough times. For example, cover crops are used on the farm for soil health, water quality, and grazing cattle. The monoslope barn provides another income stream, utilizes corn and soybean residue as bedding, and provides natural fertilizer for the fields. The corn crop is used for earlage, and “wet” corn and ethanol co-products are part of the feed rations.

Environmental benefits can be hard to measure. But the Blairs had soil nitrate samples taken in the spring of 2015, which were compared to other area fields. The samples showed that AJ and Kellie’s field had more available nitrogen for the crops despite the fact that no nitrogen was applied the previous fall, as it had been on the other three fields. On another field, organic matter increased from 4.025% to 5.063% in only 3 years, well over the anticipated 1% in 10 years gain associated with cover crops alone. AJ Blair credits the use of cover crops, reduced tillage, and cattle manure usage with this accomplishment.

Often times, it seems as though increased sustainability can decrease profitability. But the system the Blairs have worked out is intended to increase both factors. As AJ explains, “Production agriculture is a business. You have to make enough money to farm again next year. The hard truth is that farmers don’t care about soil health or water quality if they can’t afford to farm again the next season. So true sustainability means that you are making a profit. We do a lot of enterprise budgeting and in that process you find yourself questioning why you are creating each expense and whether it’s really necessary. And for us, conservation sits right on the table with the numbers.”

As Iowa’s ESAP representatives, the Blairs have been nominated for recognition at the regional level, which includes four other states. If they are successful in the regional competition, the Blairs will move on to the national level.

The National Cattlemen’s Beef Association initiated the environmental award program in 1991 to highlight exceptional work done by cattle producers to protect and enhance the environment. Since its inception, Iowa cattle producers have won 17 regional awards and three national ones.

It won’t be known until July whether AJ and Kellie Blair will be selected as the ESAP Region 3 winner. If they are selected, they will compete for the national ESAP title with six other regional winners. The national winner will be announced during the Cattle Industry Annual Convention and Trade Show in Nashville, TN, in February 2017.

ESAP is supported by the National Cattlemen’s Foundation, Dow AgroSciences, USDA’s Natural Resources Conservation Service, and the U.S. Fish and Wildlife Service.



Iowa Senate passes RFS resolution urging support through 2022

Yesterday, the Iowa Senate passed a bipartisan resolution supporting the Renewable Fuel Standard (RFS) through 2022 by voice vote. The measure calls on the U.S. Congress, the Environmental Protection Agency (EPA), the President, and the next president to support the policy as passed by Congress in 2005. Senate Resolution 118 names the RFS as one of the single most successful energy policies in our nation’s history and goes on to say, “Under the RFS, renewable fuels have access to a retail market in the face of a vertically integrated petroleum market; and whereas, the RFS represents a congressional promise to American biofuels producers, farmers, communities, and investors that the blend levels of the RFS will increase each year; and whereas, this congressional policy support the RFS will continue to build on the long-term capacity of the renewable fuels industry and will encourage the development of new types of clean fuels…”

The resolution serves as a reminder of the benefits of the RFS to the state of Iowa in terms of economic output and the preservation of Iowa’s agricultural way of life. “The RFS has been a tremendously successful bipartisan policy that’s worked to reduce our dependence on foreign oil by producing our own clean American fuel and in leading the innovation of 21st century solutions to our energy needs. We need to keep this momentum going and I commend the Iowa Senate for passing this resolution,” said Tom Buis, co-chair of Growth Energy.

The resolution points to the promise made to American biofuels producers, farmers, communities, and investors that blend levels of the RFS will continue to increase through 2022 and calls on the President and EPA, as well as the future president and administration to continue supporting the policy. It also comes after a Des Moines Register/Mediacom poll conducted by Ann Selzer and Company, which shows an overwhelming majority of Iowans on both sides of the aisle support the RFS with 71% favoring the policy.



Current National Drought Summary
droughtmonitor.unl.edu

Continued dry weather in the East led to a broad expansion of abnormally dry conditions, especially from central Tennessee and Kentucky eastward and northeastward through the Appalachians and mid-Atlantic region. Meanwhile, heavy precipitation pelted the Plains, bringing significant relief to the areas of dryness and drought that had been intensifying and expanding for the previous few weeks. Out West, moderate precipitation brought improvement to some parts of the northern Rockies experiencing dryness and drought, and improvement was also noted in parts of California and adjacent areas as the impacts of the 2015-2016 wet season on the long-term drought come into clearer focus.

The Plains and Mississippi Valley
Heavy precipitation fell on large sections of the Plains and lower Mississippi Valley, bringing substantial relief to areas where dryness and drought quickly developed over the past several weeks. Locations from central and eastern Texas northward through the Dakotas recorded at least an inch of precipitation, with considerably more (3 to 9 inches) soaking parts of South Dakota, an area from central Nebraska through central and southwestern Kansas and the adjacent High Plains, and a swath from central Oklahoma through north-central Texas. Precipitation totals over the past 90 days in these regions climbed to near or above normal levels. Conditions justified 2-category improvements (from D2 [severe drought] to D0 [abnormally dry]) in small parts of northwestern Oklahoma. Wet weather also brought an end to abnormally dry conditions formerly centered in southwestern Louisiana. The beneficial rains evaded a few areas, most notably west-central Oklahoma, parts of the Texas Panhandle and adjacent High Plains, and the areas of D0 and D1 on the eastern side of the Plains extending into the middle Mississippi Valley. Precipitation for the past 60 to 90 days was only one-third to two-thirds of normal in eastern Kansas, northeastern Oklahoma, northern Arkansas, much of Missouri, and adjacent parts of Iowa and Illinois. Dryness and drought remained essentially unchanged where it existed, and D0 expanded southeastward into southern Missouri and northern Arkansas. Dry weather also prompted slight expansion of abnormally dry conditions near the Black Hills in southwestern South Dakota and adjacent Wyoming.

Looking Ahead
During April 21 -25, 2016, moderate precipitation totals of 0.5 to 2.0 inches with locally higher amounts are forecast for northern California, much of the Sierra Nevada, the northern tier of the Rockies and Plains, central and eastern Texas, and the central Appalachians. A few tenths of an inch at best are expected in other affected areas across the contiguous 48 states. Temperatures should average a few degrees above normal across much of the Intermountain West, Rockies, and Plains.

The odds favor above-normal precipitation across most of the contiguous 48 states and southern Alaska during April 26 – 30, 2016. There are enhanced chances for subnormal precipitation in the D0 areas in southeastern Georgia and northeastern Florida, and no tilt of the odds towards either wetness or dryness in central South Carolina and in the Big Bend region of Texas and adjacent New Mexico. Enhanced chances for warmer than normal conditions exist from the southern half of the Plains eastward to the central Appalachians and the Southeast Coast and across Alaska, but cooler than normal weather is favored in most of the Far West, the northern Plains, and the Northeast.




Roundup Ready 2 Xtend Soybeans Still Pending in EU
In-Season Dicamba Use on RR2X Beans Not Expected This Season

Monsanto and many of its licensees are commercializing Roundup Ready 2 Xtend™ (RR2X) soybeans this spring, and farmers may have ordered or taken delivery of RR2X seed.

RR2X soybeans are new biotech soybeans that are tolerant to both dicamba and glyphosate herbicides. While RR2X soybeans have been approved for import into China and other major U.S. soy export markets, final approval in the European Union (EU) is expected soon but still pending.  Because RR2X soybeans still lack import approval into the EU (which is an important export market for U.S. soybeans and soybean meal), many grain elevators, soybean processors and other first purchasers have issued notices stating they will not accept RR2X soybeans this fall.

Given these facts as we approach planting time, farmers should contact their seed dealer/retailer with any questions about delivery of RR2X soybeans or potential exchange for other soybean seed that meets grower needs.

Status of Approval in Major Export Markets
Final approval by the EU Commission has been expected for the past few months, is expected soon and before harvest, but cannot be guaranteed. The American Soybean Association (ASA), U.S. Soybean Export Council (USSEC), Monsanto and others have been working with both EU and U.S. Government officials to press for approval of RR2X and other pending new biotech soybean traits. Chinese import approval of RR2X soybeans was obtained in February, and approvals in other major export markets has also been obtained.  ASA is continuing to work for final EU approval as soon as possible.

No Dicamba Use Allowed on RR2X Soybeans in the 2016 Growing Season
Growers also should be aware that while RR2X soybeans are tolerant to dicamba and glyphosate herbicides, no dicamba herbicides will be approved for use on RR2X soybeans during the 2016 growing season.  The U.S. Environmental Protection Agency (EPA) only recently proposed a draft label for a dicamba product to be used with RR2X soybeans, and this draft label, as well as anticipated labels for low-volatility dicamba herbicide formulations will NOT (repeat NOT) be finalized until late this summer or fall.  Any use of a dicamba herbicide on RR2X soybeans in-season during 2016 before final labels are approved by EPA and state officials would be a violation of law.

ASA is reviewing the draft label proposed by EPA and will submit comments on it to EPA. ASA will share its draft comments with state associations as well as encouraging individual growers to submit comments on the draft label.



Pork Producers Participate In Washington Fly-In

More than 130 pork producers from around the country today wrapped up two days of lobbying lawmakers on important pork industry issues as part of the National Pork Producers Council biannual legislative fly-in.

Producers from 20 states visited their senators’ and representatives’ Capitol Hill offices, urging them to back federal funding for addressing antibiotic resistance and for establishing a Foot and Mouth Disease (FMD) vaccine bank, to oppose legislation that would allow for the intrastate commercial sale of uninspected meat and to support the Trans-Pacific Partnership (TPP) agreement.

NPPC supports full allocation of the fiscal 2016 $10 million budget request for the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) to implement the agency’s Antimicrobial Resistance Action Plan and $25 million of additional funding for research on antimicrobial resistance and antibiotic alternatives through USDA’s National Institute of Food and Agriculture and/or its Agricultural Research Service.

The organization also wants Congress to appropriate at least $5 million for APHIS to set up an offshore FMD vaccine bank and is requesting that APHIS contract for production of enough vaccine to address the early stages of an outbreak and of the millions of additional doses needed to respond to a medium- or large-scale outbreak.

“Those are critically important issues for our industry,” said NPPC President John Weber, a pork producer from Dysart, Iowa. “We’re very concerned about the resistance issue and about the ramifications of an FMD outbreak, so our producers let their members of Congress know we support efforts to address both matters.”

On the issue of uninspected meat, NPPC opposes the “Processing Revival and Intrastate Meat Exemption,” or PRIME, Act because it would create food safety risks, prevent animal diseases from being detected and addressed and undermine public confidence in the food supply.

The TPP has been the top trade priority of NPPC, which led the agricultural industry in supporting the multilateral deal, which includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Those Pacific Rim countries account for nearly 40 percent of global GDP.

“NPPC has been a strong, consistent supporter of free trade agreements, and we support the TPP, which will be the biggest commercial opportunity ever for U.S. pork producers,” said Weber. “The future of our industry is dependent on increasing exports, and if the TPP deal that was negotiated is implemented, U.S. pork exports to the Asia-Pacific region will increase exponentially.

“We appreciate the strong support we are receiving from the Obama administration and Congress to ensure that U.S. pork producers receive the full benefit of the TPP agreement,” Weber said. “There are still some issues that must be addressed, but we’re confident they will be resolved, and the pork producers who came to Washington this week conveyed that message to their lawmakers.”



Record High Pork Production for March

Commercial red meat production for the United States totaled 4.26 billion pounds in March, up 5 percent from the 4.07 billion pounds produced in March 2015 - according to USDA's montly livestock slaughter report today.

Beef production, at 2.10 billion pounds, was 8 percent above the previous year. Cattle slaughter totaled 2.53 million head, up 6 percent from March 2015. The average live weight was up 23 pounds from the previous year, at 1,370 pounds.

Veal production totaled 6.4 million pounds, 8 percent below March a year ago. Calf slaughter totaled 35,900 head, down 10 percent from March 2015. The average live weight was up 7 pounds from last year, at 302 pounds.

Pork production totaled 2.15 billion pounds, up 2 percent from the previous year. Hog slaughter totaled 10.09 million head, up 2 percent from March 2015. The average live weight was down 1 pound from the previous year, at 284 pounds.

Lamb and mutton production, at 14.3 million pounds, was down slightly from March 2015. Sheep slaughter totaled 205,900 head, slightly above last year. The average live weight was 138 pounds, down 1 pound from March a year ago.

March: By State - (million lbs. - % of Mar '15)
Nebraska ........:            671.8            111      
Iowa ...............:            601.6             99      
Kansas ............:            438.8            106      

January to March 2016 commercial red meat production was 12.2 billion pounds, up 3 percent from 2015. Accumulated beef production was up 5 percent from last year, veal was down 4 percent, pork was up 1 percent from last year, and lamb and mutton production was up 1 percent.



ASA Comments on APHIS Proposed Revisions to Biotech Regulations

The American Soybean Association (ASA) submitted comments this week regarding the Animal and Plant Health Inspection Service’s (APHIS) proposed revisions to biotech crop regulations.

In February, APHIS announced its intent to conduct a programmatic economic impact study as part of a comprehensive study of its Part 340 regulations of biotech crops.

ASA commended APHIS for undertaking this initiative, and supports the goal of updating regulations to reflect changes in the environment for the development and commercialization of the products of biotechnology.

“Any changes to the regulations should be tailored to address specific problems in a clear and transparent manner,” ASA states in the comments. “In addition, APHIS must consider the potential impact of changes in its policies on the international as well as the domestic regulatory and commercial environment for biotech products.”

ASA is particularly concerned by the potential for changes in our regulatory system to disrupt international trade. The U.S. government and our industry are actively encouraging foreign trading partners to adopt product-based regulatory review systems for biotech traits that are similar to our own.

“This issue is critically important to U.S. soybean producers, since we export over half of our annual production and biotech traits are expressed in over 90 percent of the varieties we plant,” the comments state. “A sudden or unexpected change in our regulatory policy could prevent the introduction of new biotech products in the U.S, since nearly all countries have a zero tolerance for the presence of traits they haven’t approved. This would effectively shut down the process for developing and introducing new products.”

ASA expressed support for the proposed regulatory approach that is product-based, regulates only products that pose a documented risk and is consistent with APHIS’s authority and intent to modernize its regulations and called for oversight that is transparent, predictable and proportionate to the actual risk posed.



NAWG Comments on APHIS Notice of Intent Regarding Biotech Definition   

Following APHIS’s publication of their Notice of Intent (NOI) to prepare an Environmental Impact Statement (EIS) for proposed rule changes governing the introduction of products of biotechnology, The National Association of Wheat Growers (NAWG) has formally registered its comments on the NOI.

The NOI outlines APHIS’s intent to re-define the term “biotechnology”, which includes expanding it to include new breeding techniques. NAWG does not support APHIS in the definition change.

NAWG also provided comments on four rule change options listed by APHIS in the NOI. Of the four options, NAWG outlined its support for a phase-in approach of Option 2, “analyze first, regulate second”, whereby the agency would conduct a risk analysis before determining whether the product should be regulated. NAWG supports Option 2 because it will potentially streamline the process for a product toward a commercial path. The other options included 1) no change 2) wide-scale increased regulatory oversight and 3) withdrawing the current rule, 7CFR part 340, altogether. NAWG believes these three options would hurt producers, cause unnecessary costs, and burden researchers and technology providers.

NAWG encourages engagement with stakeholders prior to the release of the rule by USDA APHIS.



Labor Visa Backlogs Threaten 2016 Crops, Farm Bureau Calls for Action

Agency delays in processing visas for workers who tend and harvest America's food crops are fast approaching crisis proportions, all but guaranteeing that crops will rot in the field on many farms this year, American Farm Bureau Federation President Zippy Duvall said today.

Communications with state Farm Bureaus across the nation have revealed worker shortages in more than 20 states.

"Many farmer members have called us and state Farm Bureaus asking for help," Duvall said. "They face serious hurdles in getting visas for workers in time to tend and harvest this year's crops. Paperwork delays have created a backlog of 30 days or more in processing H-2A applications at both the Department of Labor and United States Citizenship and Immigration Services."

Farmers depend on the H-2A agricultural visa program to fill gaps in the nation's ag labor system, but, Duvall said, the program is far from perfect. Processing and procedural delays, such as the government's use of U.S. mail instead of electronic communications, are leading to losses from unharvested crops.

Duvall and a group of other farmers and policymakers made his case on a conference call for the media. Also joining him were Gary Black, Commissioner of the Georgia Department of Agriculture; Jamie Clover Adams, director of the Michigan Department of Agriculture and Rural Development; and farmers Bill Brim from Georgia, Carlos Castaneda from California and Jen Costanza from Michigan. Each of the farmers described the challenges they face with securing adequate workers to tend and harvest this year's crops.

Duvall said the Labor Department too often fails to comply with rules that require it to respond to farmers' requests before crews are needed.

"Crops can't wait on paperwork," Duvall said. "DOL is routinely failing to approve applications 30 days prior to the day farmers need workers. That delay, coupled with delays occurring at USCIS, places farmers in an impossible situation. We've heard from members who are already missing their window of opportunity to harvest. They are already facing lost revenue."

Duvall repeated AFBF's call for Congress to pass responsible immigration reform that provides farmers access to a legal and stable workforce. He also outlined possible solutions to the challenge, including modernizing agency H-2A approval procedures. He said DOL and USCIS both rely on sending documents to farmers by regular mail, which he called "unacceptable in 2016."

Duvall said AFBF is also working with the Agriculture Department "to be an advocate for farmers and take whatever steps it can to ensure farmers get the workers they need to tend and harvest this year's crops."



Consortium of Farm Industry Organizations Recognizes Conservis Corp. for Commitment to Data Ownership and Privacy

When it comes to data ownership and privacy, growers expect and demand high standards. Conservis Corp., the industry leader in enterprise ag management, was recently recognized for its long-standing commitment to these issues with the Ag Data Transparency Evaluator (ADTE) seal. This designation was awarded by an independent review organization comprised of industry groups, commodity organizations and ag technology providers.

The ADTE is a non-profit organization created to give growers objective and clear insights into what data is being collected, who has access and who maintains ownership. The Conservis Enterprise Farm Management platform, which helps growers run more efficient, profitable and professional businesses, received the seal by demonstrating a commitment to an open and transparent data usage and privacy policy.

In pursuing the ADTE seal, Conservis voluntarily provided answers to a series of questions related to data management and policies. An independent third-party administrator reviewed Conservis’ ag data contracts and answers to the standard evaluation questions before determining that it met the ADTE’s high standards for receiving the seal.

“Without the trust of growers, we have nothing. We’ve worked hard to stay at the forefront of  the ever-shifting data privacy and security landscape that exists in agriculture today,” said Mark Hubbard, Conservis Product Manager. “We believe farmers own their data, and we are proud to be one of the first companies to be able to demonstrate our commitment to growers by displaying the ADTE seal."

Hubbard adds, “Initiatives like the Ag Data Transparency Evaluator put the grower first and enable true technology comparisons so growers can make the best decisions possible. In an era where so many industries try to control customer data, we see programs like this as a big win for growers.”

To learn more about the Ag Data Transparency Evaluator or to see Conservis’ responses to the ADTE evaluation questionnaire, visit fb.org/agdatatransparent.



Members of Congress Urge Obama Administration to Ensure Trans-Pacific Partnership Benefits are Not Undermined

Key members of the U.S. House of Representatives issued a strong statement today affirming the need for the Obama Administration to take concrete steps to address implementation and enforcement issues related to dairy provisions of the Trans-Pacific Partnership (TPP) trade agreement.

Led by Reps. Suzan DelBene, Reid Ribble, Ron Kind and David Valadao, 47 House members (including leaders of the House Ways & Means Trade Subcommittee and the ranking member of the House Agriculture Committee) signed a letter to U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack underscoring “critical implementation components related to dairy trade.”

The U.S. Dairy Export Council, National Milk Producers Federation and International Dairy Foods Association commend the action, which called on Ambassador Froman and Secretary Vilsack to address three dairy “priority areas” in TPP as Congress prepares to consider the agreement:
-    Ensuring Canada faithfully implements its TPP commitments and also does not alter existing avenues for U.S. market access.
-    Ensuring U.S. trading partners, particularly major markets such as Japan, adhere to the intent of the TPP agreement’s geographical indication (GI) commitments.
-    Establishing U.S. procedures to actively ensure compliance with the terms of the market access that the U.S. will provide to TPP trading partners.

“Each of these considerations will be an important factor in how we view the overall agreement,” the letter concludes.

The House message echoes a joint letter USDEC, NMPF and IDFA sent to Ambassador Froman and Secretary Vilsack on April 19. This industry message also urged action by the Administration to address critical TPP implementation and enforcement issues.

“As the Representatives noted in their letter, U.S. dairy exports have borne the brunt of regulatory actions specifically created to limit U.S. access to the Canadian dairy market,” said Tom Suber, president of USDEC. “It is critical that USTR ensure that Canada doesn’t take away what little access they gave the United States under TPP. We must ensure that this pattern does not continue, and make sure that Canada neither undermines existing access nor its new access commitments under TPP.”

“The fine print in implementing TPP really matters,” said Jim Mulhern, president and CEO of NMPF. “We have endorsed the outlines of the agreement, but must insist that the terms agreed to need to be followed by the other countries in this agreement. The U.S. needs to remain vigilant with the TPP signatories and really hold their feet to the fire both now and down the road.”

“Making sure our trade partners adhere to their current and negotiated commitments is essential to the U.S. dairy industry, especially since we received limited market access gains in Canada and Japan in the final TPP negotiations,” said Connie Tipton, president and CEO of IDFA. “We certainly appreciate congressional efforts to address dairy’s concerns and to recommend activities that will ensure compliance.”

“The TPP agreement has the potential to help create international trade opportunities and support robust growth for the U.S. dairy industry, but only if it is fully implemented and enforced,” said Mulhern. “Addressing the priority areas outlined in the House letter will go a long way toward helping the industry capture TPP’s potential.”