Thursday May 19 Ag News

 Analysis Shows Nebraska Counties “Win” with Trans-Pacific Partnership

“Cuming County sets atop a long list of Nebraska counties that would benefit significantly from U.S. participation in the Trans-Pacific Partnership (TPP) trade agreement according to an economic analysis conducted by the Nebraska Farm Bureau,” said Steve Nelson, Nebraska Farm Bureau president, May 19.  He made the announcement during at event at the Joe Prinz and family feedlot just southeast of West Point, NE.

According to the analysis, Cuming, Custer, Platte, Dawson, and Lincoln counties would be among the biggest winners under the TPP, as those counties would each experience more than $10 million in additional cash sales of agriculture commodities per year once the TPP trade protocols are fully enacted.

“While some counties will fare better than others, our analysis shows virtually every county in the state would reap benefits from the passage of the TPP legislation due to provisions eliminating tariffs and other trade barriers on Nebraska agriculture exports to the TPP partner countries,” said Nelson.

The Nebraska Farm Bureau analysis projected how each Nebraska county would fare in expanded sales of agriculture commodities produced by Farm Bureau members, including cattle, pork, corn, wheat and soybeans under the TPP provisions. The analysis expanded upon state-by-state TPP economic analysis conducted by the American Farm Bureau Federation.

“We felt it was important to demonstrate the benefits of the TPP on a more localized level. It’s important people understand this trade deal would benefit farmers, ranchers and their rural communities while collectively contributing to Nebraska’s overall economy,” said Nelson.

In releasing the county projections, Nelson was joined by Gov. Pete Ricketts and agriculture leaders representing the Nebraska Cattlemen, Nebraska Pork Producers Association, Nebraska Corn Board, Nebraska Soybean Association and the Nebraska Department of Agriculture in calling for swift action by Congress to approve the TPP legislation. The TPP is projected to increase Nebraska’s total cash receipts by more than $378 million annually based on increased sales of agriculture products alone.

“Today’s announcement underscores the economic impact the Trans-Pacific Partnership will have on all of Nebraska. TPP is a key way Nebraska can continue to grow our trade relationships with many of our Pacific rim trading partners. Following my trade mission to Asia last year, it became clear to me that TPP is the next step we need to take to help bring down trade barriers. Bringing down trade barriers will help accelerate growth for Nebraska’s ag commodities,” said Gov. Ricketts.

The Nebraska Cattlemen also agree that the passage of TPP legislation is key and an important next step for the Nebraska beef industry.

“TPP reflects a major opportunity for Nebraska beef. Nearly 40 percent of Nebraska’s projected increase in sales of agriculture products under TPP would come from the sale of Nebraska beef into TPP countries,” said Troy Stowater, president-elect for the Nebraska Cattlemen. “That’s a major boost for everyone involved in Nebraska beef production.”

Nebraska pork producers would also see growth opportunities. The analysis projects Nebraska pork sales statewide would expand by more than $39 million annually with the passage of TPP. Counties with strong pork production such as Platte, Holt and Boone counties are estimated to gain more than $3 million annually in additional pork sales under the agreement.

“TPP will add significantly to the bottom line of each Nebraska pork producer,” said Al Juhnke, executive director of the Nebraska Pork Producers Association. “Exports of pork and pork products represents nearly 25 percent of our total U.S. production and continues to grow.”

The trade agreement, if enacted, also stands to boost Nebraska corn sales through value added purchases of corn to feed Nebraska livestock to meet expanded demand for Nebraska meat products by TPP partner nations. Cash receipts from corn sales represent the second largest growth area under TPP provisions behind Nebraska beef with projects of $76 million in increased annual sales of Nebraska corn.

“The world is the market for Nebraska corn farmers. TPP provides a pathway to grow established markets and increase global demand for Nebraska corn in all forms—such as raw corn or value added beef and pork,” said David Merrell, chairman of the Nebraska Corn Board.  “The increased demand created by trade agreements such as TPP adds value to Nebraska agriculture—and that creates economic vitality all across our state."

The county-by-county TPP analysis was released in conjunction with an event held at the Prinz family farm and feedyard near West Point, co-sponsored by the Cuming County Livestock Feeders Association and the Cuming County Farm Bureau.

“The bottom line is that Congress must pass TPP legislation to bolster opportunities to move Nebraska agriculture commodities into these new markets. The analysis clearly shows that farmers and ranchers in virtually every Nebraska county stand to benefit from increased sales,” said Nelson. “This doesn’t even include the multiplier effect of additional monies coming into our local and broader state economy which is great for Nebraskans everywhere.”

Countries involved in the Trans Pacific Partnership trade agreement include Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, Japan, and the United States. The TPP is a multi-lateral agreement intended to create high quality rules and market access across its 12 members. The TPP would only go into full effect if the United States ratifies the agreement, however, failure to do so will not prevent other countries from moving forward with bi-lateral trade agreements that would exclude the United States.

For the full Nebraska county-by-county TPP analysis visit the Nebraska Farm Bureau at www.nefb.org.



Rural Mainstreet Economy Remains Weak for May

The Creighton University Rural Mainstreet Index for May increased from April’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: While remaining very fragile, the Rural Mainstreet Index (RMI) has increased three of the last four months. The index, which ranges between 0 and 100, rose to 40.9 from April’s 38.2.

“This is the ninth straight month the overall index has remained below growth neutral. Even though agriculture and energy commodity prices have increased recently, they remain well below prices 12 months earlier and from their peak levels in 2011. Farm prices are down by 17 percent and grain prices are off by 49 percent,”  said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.

Farming and ranching: The farmland and ranchland-price index for May climbed to 28.4 from April’s 26.7. This is the 30th straight month the index has moved below growth neutral.

When asked to identify the biggest threat to the Rural Mainstreet economy for 2016, more than 9 of 10 bank CEOs named low agriculture commodity prices as the greatest challenge to the Rural Mainstreet economy.

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.

The May farm equipment-sales index sank to a dismal 10.7 from 11.1 in April. “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 local agricultural equipment dealers and regional manufacturers of farm equipment,” said Goss.

Nebraska: The Nebraska RMI for May grew to 43.3 from 40.5 in April. The state’s farmland-price index advanced to 44.5 from April’s 42.8. Nebraska’s new-hiring index fell to 49.3 from 57.3 in April. According to Jeffrey Gerhart Chairman of the Bank of Newman Grove in Newman Grove said, “Regulatory burden, low commodity prices and tight margins for farmers will continue to negatively impact our community.” Nebraska’s Rural Mainstreet job growth over the last 12 months was 1.2 percent.

Iowa: The May RMI for Iowa slumped to 40.3 from April’s 41.2. Iowa’s farmland-price index for May climbed to 47.3 from 45.6 in April. Iowa’s new-hiring index for May dropped to 50.3 from 56.4 in April. Iowa’s Rural Mainstreet job growth over the last 12 months was 1.6 percent.

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.



Ricketts Highlights Benefits of Biofuels During Renewable Fuels Month

Today, Governor Pete Ricketts highlighted Renewable Fuels Month in Nebraska and the importance of biofuels to the state by kicking off a unique ethanol promotion at Sapp Brothers in Omaha.  The Governor previously designated May as Renewable Fuels Month in Nebraska by signing a proclamation.

“With renewable fuels, we are not only adding value to the crops we grow, but also expanding America’s domestic fuel supply while creating quality jobs all across our state,” Governor Ricketts said.  “Renewable fuels have a positive influence on our economic landscape in Nebraska.  By filling up with biofuels, you support Nebraska’s farm families and bring good-paying jobs to our state’s rural communities.”

Nebraska’s economic prosperity is closely tied to agriculture, the state’s number one industry.  Nebraska ranks second nationally for ethanol production, which consumed 43 percent of the state’s corn crop in 2014 according to the Nebraska Department of Agriculture.

Both American Ethanol and soy biodiesel are clean-burning, renewable fuels made from homegrown Nebraska commodities.  These fuels and co-products greatly contribute to Nebraska’s economic vitality and make an impact across the entire country.  More than 1,500 people in rural Nebraska and more than 850,000 people nationwide are employed in the renewable fuels industry, according to a 2014 economic impact study released by Fuels America.

In addition to financial benefits, biodiesel and American Ethanol also provide many environmental and consumer benefits.  According to the American Lung Association of the Upper Midwest, some 70 percent of harmful air pollution is attributable to mobile sources such as passenger vehicles, trucks, buses, and construction equipment.  Biodiesel reduces hydrocarbon emissions by 67 percent.  Similarly, American Ethanol is a non-toxic, clean-burning fuel that dramatically reduces the level of toxics added to gasoline, including proven and suspected carcinogens such as benzene, toluene, and xylene.

"When it comes to air quality, renewable biofuels such as American Ethanol and biodiesel burn cleaner and help make our air healthier,” Governor Ricketts noted.  “Renewable Fuels Month is a great way to bring awareness to the wide range of benefits biofuels provide.  Nebraska-produced biofuels are cost-effective, American-made, renewable, and better for our environment.”



Ricketts, Nebraska Ag Groups Decry Proposed RFS Reduction

Today, Governor Pete Ricketts and Nebraska ag groups decried the Environmental Protection Agency’s proposal to lower the target for conventional ethanol blended fuel in 2017 under the Renewable Fuel Standard (RFS) to 14.8 billion gallons.  If adopted, this proposal would fall below the level of 15 billion gallons dictated in federal law.

“Once again, the EPA is proposing to lower the Renewable Fuel Standard and to break their promise to the American people,” said Governor Pete Ricketts.  “Continued efforts to lower the RFS will negatively impact Nebraska and other Midwestern states by creating uncertainty for companies who are investing in our communities and bringing the jobs we need to continue to make our state the best place in the world to live, work, and raise a family.  I urge the Obama Administration to reconsider their proposed reduction, and to keep their promise on the RFS to the American people.”

Last summer, Governor Ricketts and Iowa Lt. Governor Kim Reynolds rallied Nebraskans and Iowans in support of the RFS to oppose reductions to the RFS by the EPA.  In December, the EPA finalized their rule for 2014-16, which cut the RFS by less than originally proposed, but still fell short of the original targets in federal law.

“The biofuel blending levels announced by EPA today fall far short of statutory requirements,” said Ethanol Board Administrator Todd Sneller.  “While the renewable volume obligations reflect an increase from the 2016 requirements, they do not reflect the capability of biofuel producers to produce at levels that allow an orderly expansion of renewable fuel in the nation’s fuel supply.  As a result, the economic potential of biofuel production is not fully realized by either producers or consumers of transportation fuels.”

Sneller also pointed out that more than 20 states are actively adding infrastructure to expand the use of biodiesel and ethanol fuels.  The expanded infrastructure is designed to make biofuels more readily available across the nation during a period when fuel sales are projected to increase.  The EPA volume targets effectively undermine a private sector drive to expand biofuel production and marketing.

“The Renewable Fuel Standard is doing exactly what it was intended to do for America,” said David Merrell, farmer from St. Edward and chairman of the Nebraska Corn Board.  “It has reduced our dependency on imported oil by providing a homegrown, locally-produced renewable fuel, spurred investment in our rural communities, provided drivers with more choices at the pump, and has helped make our air cleaner.  Any reduction in the statutory amount takes America backward – destabilizing our energy security.”

The EPA is expected to hold a field hearing on the proposed changes to the Renewable Fuel Standard in Kansas City on June 9, 2016.




Current National Drought Summary
droughtmonitor.unl.edu

This U.S. Drought Monitor week saw widespread improvements in drought conditions primarily focused on northern California and Nevada while short-term precipitation deficits during the past 30–60 days led to some deterioration of conditions in parts of the Northeast, Pacific Northwest, and Southeast. During the past week, unseasonably cool temperatures dominated east of the Rockies while temperatures were above average in the Far West. Parts of the South continued in a wet pattern where a series of severe storms impacted South Texas with heavy rains (five-to-twelve inches) and localized flash flooding. Significant rainfall accumulations (two-to-five inches) also were observed in portions of the lower Midwest including southern Illinois, western Kentucky, and southern Missouri. Out West, conditions were generally drier, although some modest rainfall accumulations were observed across the Central and North Rockies as well as in the Pacific Northwest. In the Hawaiian Islands, beneficial rains fell in the drought-impacted coffee growing regions of South Kona on the Big Island, providing some relief.

The Plains
Across the Plains, improvements were made on the map in areas of Abnormally Dry (D0) in southeastern Kansas and north-central Oklahoma where recent rainfall improved area conditions. In southwestern South Dakota, short-term precipitation deficits in the Black Hills led to the introduction of an area of Moderate Drought (D1) that extended across the border into northeastern Wyoming. Temperatures were well below-normal across the entire region during the past week, especially in the Central and Northern Plains where temperatures were six-to-fifteen degrees below-normal. Precipitation across the region was heaviest in eastern portions of Kansas and Oklahoma where one-to-three inch accumulations occurred during the past week while northern portions were dry.

Looking Ahead
The NWS WPC 7-Day Quantitative Precipitation Forecast (QPF) calls for significant rainfall accumulations in the Gulf Coast, Mid-Atlantic, Southeast, and Texas with totals ranging from two-to-four inches. Otherwise, lesser accumulations are forecasted for extreme northern California, the Northern Rockies, and the Pacific Northwest. The CPC 6–10 day outlooks call for a high probability of above-normal temperatures east of the Rockies while the West is expected to be below-normal. Below-normal precipitation is forecasted for the Eastern Tier and Desert Southwest while there is a high probability of above-normal precipitation in the western portions of the Midwest and South, Northern Great Basin, Northern Rockies, Pacific Northwest, and across the Plains states.



USDA says Red Meat Production was Slightly Lower in April

Commercial red meat production for the United States totaled 3.98 billion pounds in April, down 1 percent from the 4.02 billion pounds produced in April 2015.

Beef production, at 1.96 billion pounds, was 2 percent above the previous year. Cattle slaughter totaled 2.41 million head, up 1 percent from April 2015. The average live weight was up 10 pounds from the previous year, at 1,348 pounds.

Veal production totaled 6.0 million pounds, 10 percent below April a year ago. Calf slaughter totaled 34,800 head, down 2 percent from April 2015. The average live weight was down 25 pounds from last year, at 293 pounds.

Pork production totaled 2.00 billion pounds, down 3 percent from the previous year. Hog slaughter totaled 9.37 million head, down 3 percent from April 2015. The average live weight was up 1 pound from the previous year, at 285 pounds.

Lamb and mutton production, at 12.8 million pounds, was down 6 percent from April 2015. Sheep slaughter totaled 189,000 head, 5 percent below last year. The average live weight was 135 pounds, down 2 pounds from April a year ago.

Production by State - April 2016
                    (million pounds - % of Apr '15)
Nebraska ...........:     609.6            105     
Iowa ..................:     570.6             95     
Kansas ...............:     433.3            106     

January to April 2016 commercial red meat production was 16.2 billion pounds, up 2 percent from 2015. Accumulated beef production was up 4 percent from last year, veal was down 6 percent, pork was up slightly from last year, and lamb and mutton production was down 1 percent.



Northey Encourages Farmers to Complete USDA Surveys

Iowa Secretary of Agriculture Bill Northey Wednesday highlighted two major surveys being conducted by the USDA National Agriculture Statistics Service (NASS) and encouraged farmers who are contacted to take the time to participate.

"These two surveys provide a lot of important information about the status of this year's crop and also about how much grain is still being stored. I know this is a very busy time with farmers trying to finish planting, get spraying done, caring for livestock and a variety of other activities, but these surveys provide valuable information and I hope the farmers contacted take the time to participate," Northey said.

During the next few weeks, the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS) will conduct two major mid-year surveys, the June Agricultural Survey and the June Area Survey. The agency will survey over 5,000 operators across Iowa to determine crop acreage for 2016 and current grain supply levels.

NASS gathers the data for the June Agriculture Survey by mail, phone, and online. For the June Area Survey, a NASS representative will visit randomly selected segments of land and interview the operators of the land in that segment. Growers will provide information on crop acreage, livestock inventory, grain stocks, cash rents, and values of land and sales.

"These surveys are two of the most significant surveys NASS conducts. They provide information from growers that serve as the first clear sign of the prospective production and supply of major commodities in the United States for the 2016 crop year," explained Greg Thessen, director of the NASS Upper Midwest Regional Field Office in Des Moines, Iowa.

By taking just a few minutes to participate, selected operators can help ensure the accuracy and quality of this data so that NASS reports can eliminate speculation about potential acreage and help producers make critical decisions about marketing their crops this year. The information is also used extensively by state, local, and national leaders to address agricultural related issues that may impact producers.

As with all NASS surveys, information provided by respondents is kept strictly confidential, as required by federal law. "NASS safeguards the privacy of all responses and publishes only state-level and national-level data, ensuring that no individual operation or producer can be identified," stated Thessen. "We recognize this is a busy time for farmers, but the information they provide is essential to everyone involved in U.S. agriculture. I urge them to respond to these surveys and thank them for their cooperation," said Thessen.

NASS will compile and analyze the survey information and publish the results in a series of USDA reports, including the annual Acreage report and quarterly Grain Stocks report, both to be released June 30, 2016. This survey data also contribute to NASS's monthly Crop Production reports and the USDA's World Agricultural Supply and Demand Estimates.



Healthy Waterways Infrastructure Crucial for a Healthy Farm Economy

The National Corn Growers Association joins with others across the country this Infrastructure Week to highlight the critical role our Nation's inland waterway system plays in agriculture and the incredible importance of maintaining the operational capacity of this system.

With more than 60 percent of the nation's grain exports being transported by barge, the U.S. inland waterway system is vital for U.S. farmers. Farmers depend on the inland waterway system to deliver their crops to the global marketplace and to businesses which rely on the system to move their raw materials and products. As the waterway system ages and infrastructure-related delays increase, farmers will find it increasingly difficult to meet demand in the timely fashion needed to grow markets.

60 percent of the 12,000 miles of waterways across 38 states serving the heartland of America via the Mississippi River and its major tributaries have outlived their 50-year economic design period. Most of America's locks and dams were built in the 1920s and 1930s, yet are used to transport 21st century cargoes that fuel our modern economy.

The good news is that infrastructure investment for our aging locks and dams offers a great return: Every $1 invested in our inland waterway system returns $10 to our Nation's economy. And proper investment means sustaining 541,000 jobs and more than $1 billion in new job income annually.

The waterways are the safest, most environmentally sound transportation mode for bulk cargoes. Waterways have the best fuel efficiency record, relieve highway traffic congestion, and have the most capacity for freight that can facilitate increased productivity.



April Milk Production in the United States up 1.2 Percent

Milk production in the United States during April totaled 18.0 billion pounds, up 1.2 percent from April 2015 according to USDA.  Production per cow in the United States averaged 1,929 pounds for April, 20 pounds above April 2015.  The number of milk cows on farms in the United States was 9.33 million head, 15,000 head more than April 2015, and 4,000 head more than March 2016.

Milk production in Iowa during April 2016 totaled 425 million pounds, up 3 percent from the previous April according to the latest USDA, National Agricultural Statistics Service – Milk Production report. The average number of milk cows during April, at 212,000 head, was 1,000 more than last month but unchanged from a year ago. Monthly production per cow averaged 2,005 pounds, up 65 pounds from last April.



Dairy Industry Applauds School Milk Support

Dairy leaders applaud the House Education and Workforce Committee for including key dairy provisions in the Improving Child Nutrition and Education Act of 2016, which was approved today by the committee. A bipartisan amendment  by Congressmen G.T. Thompson (R-PA) and Joe Courtney (D-CT), specifically targeted at addressing declining school milk consumption, was unanimously approved.

“Fluid milk consumption in schools has declined in recent years, and in fact most Americans are drinking less milk than recommended by the 2015 Dietary Guidelines for Americans (DGA),” said J. David Carlin, senior vice president of legislative affairs and economic policy at the International Dairy Foods Association. “The fact that the school milk provisions have bipartisan support in this bill is an indication of how important it is to promote better consumption of milk by the nation’s students.”

“This bill takes an important step toward reversing the decline in school milk consumption by asking USDA to examine how to ensure that kids are getting enough milk,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “By better aligning the school lunch program with the dietary guidelines, options including 1% flavored milk will be back on the lunch tray in school cafeterias as a result of this legislation.”

The dairy organizations voiced their support for the Thompson-Courtney amendment in a joint letter sent Tuesday to Reps. John Kline and Robert Scott – the committee chair and ranking member, respectively – of the House Education Committee.

That amendment bolsters recommendations made in the DGA, released earlier this year, which says current laws should continue to make milk integral to all the child nutrition programs. It also requires adjustments as necessary to promote better consumption of milk by the nation’s students and to permit schools to offer all varieties consistent with the Dietary Guidelines for Americans. The bill also provides innovative approaches to meet the needs of lactose-intolerant children.

“Milk and other healthy dairy foods have always been integral to child nutrition programs, from school lunches and breakfasts to Women, Infants, and Children (WIC), Child and Adult Care Food Program (CACFP) and other programs that serve our youth and vulnerable, at-risk populations,” the letter said. “As the expert advisory panel on the DGA stated, “Consumption of dairy foods provides numerous health benefits, including lower risk of diabetes, metabolic syndrome, cardiovascular disease and obesity. Along with dairy’s long-established role in promoting bone health, reducing the risk of insidious chronic diseases and conditions demonstrates why milk is offered with every school meal and dairy foods are prominent parts of other nutrition assistance programs.”

The bill will now move to consideration by the full U.S. House of Representatives.



 American Farm Bureau Federation Statement Regarding National Academy Report on GMOs

"The National Academies of Science, Engineering and Medicine have reaffirmed what thousands of other studies have found, and what farmers, scientists and educated consumers have known all along: genetically engineered crops are safe and beneficial to agriculture, human health and the environment.

"The Academies also found that we do not need a label for food made from genetically engineered crops because those foods are as safe to consume as any other. This finding is timely, as the Senate has yet to pass legislation to pre-empt state-by-state labeling mandates--mandates that are not based on science or food safety issues and would be misleading and costly for consumers. The study gives senators all the evidence they need to support a national, voluntary labeling standard and we urge them to do so soon--before it is too late to halt the non-science-based labeling mandate in Vermont.

"The science behind the safety of modern agricultural technology is clearer than ever. We thank the Academies for tackling this issue and doing a thorough, scientific review. This report should close the book on any further debate over the safety and benefits of GMOs."



NFU Pleased by Absence of GIPSA and Organic Livestock Riders in Senate Appropriations Bill, Disappointed by More Conservation Cuts

The Senate Appropriations Committee today marked up the fiscal year 2017 appropriations bill, and National Farmers Union (NFU) was pleased to see controversial provisions excluded from the bill.

The organization, representing nearly 200,000 family farmers and ranchers, applauded the exclusion of two amendments that would have blocked funding for the U.S. Department of Agriculture to implement long-awaited regulations aimed at leveling the playing field for livestock and poultry producers.

The Grain Inspection, Packers and Stockyards Administration (GIPSA) rule, a regulation that would reign in abusive contract and marketing practices in the livestock industry, has been blocked annually in the appropriations process since fiscal year 2012.

After the amendment was eliminated in the fiscal year 2016 appropriations package, the House Appropriations Committee reintroduced the rider last month. NFU President Roger Johnson was appreciative the Senate Appropriations Committee chose a different course.

“Our producers have been waiting for the much needed contract protections that the GIPSA rules would provide. We were happy to see Senate Appropriators stand up for family farmers and ranchers by allocating funding to finalize this rule, and we urge lawmakers to keep any amendment blocking this provision out of conference committee,” Johnson said.

NFU was also pleased by the absence of an amendment that would have blocked a proposed rule by the National Organic Program that would create consistency for animal welfare standards in the organic livestock and poultry industry.

Regarding conservation programs that incentivize environmentally-friendly production practices, Johnson expressed disappointment that the Environmental Quality Incentives Program (EQIP) was not fully funded, cutting mandatory spending by $303 million in today’s Senate Appropriations bill.

“Climate change is impacting production agriculture and directly affecting our ability to meet global food security challenges. Conservation programs, like EQIP, bring value-producing climate solutions to rural America, and they should be fully funded at the levels allocated in the 2014 Farm Bill,” Johnson concluded.



ICBA to Congress: Tax-Subsidized Farm Credit System Abandoning Mission

The Independent Community Bankers of America® (ICBA) today told Congress that the tax-advantaged Farm Credit System is undermining rural credit availability. Testifying before the Senate Agriculture Committee, ICBA community banker Gus Barker said the government-sponsored enterprise has strayed from its mission of serving farmers and ranchers by making nonfarm loans and weakening community banks.

“The Farm Credit System’s focus has been on cherry picking farm loans out of community bank portfolios while ignoring young, beginning and small farmers,” said Barker, president and CEO of the Community Bank of Oelwein, Iowa. “Further, more attention needs to be paid to the Farm Credit System’s nonfarm lending to some of America’s largest corporations, such as Verizon, AT&T and U.S. Cellular, and the Farm Credit Administration’s willingness to allow it. One hundred years of lavish subsidies for the Farm Credit System is enough.”

Congress provided the Farm Credit System (FCS) with tax and funding advantages in the early years of the previous century to provide farmers and ranchers access to long-term, fixed-rate credit at a time when such credit was limited, Barker noted. While community banks are providing their farm borrowers with ample credit at near historically low interest rates, the FCS has used its lavish tax subsidies to offer below-market rates to large farming operations, ignore small and beginning farmers, and weaken locally based community banks.

Barker noted that the FCS is trying to reposition itself as a general-purpose lender despite unsuccessfully lobbying Congress for expanded lending authority. The Farm Credit Administration has gone out of its way to ignore Farm Credit Act restrictions and allow FCS lenders to make nonfarm loans to businesses and infrastructure projects if labeled “investments.”

ICBA will continue working with the Senate and House agriculture committees to address FCS mission creep, the system’s lavish tax advantages, and its inappropriate nonfarm lending.



Farm Credit Testifies Before Senate Ag Committee

Farm Credit participated today in the Senate Committee on Agriculture, Nutrition and Forestry’s full committee hearing titled, “The Farm Credit System: Oversight and Outlook of the Current Economic Climate.”

Farm Credit Services of America CEO Doug Stark testified about the importance of Farm Credit’s broad mission to serve rural communities and agriculture and how Farm Credit is working with customers during the current downturn in the agricultural economy. The Committee also heard from Michigan farmer and U.S. Army veteran Jed Welder, Farm Credit Administration board members Kenneth Spearman, Dallas Tonsager and Jeffery Hall, along with representatives of the commercial banking industry.

In addition to those testifying in-person today, nearly 80 groups representing farmers, ranchers, farmer-owned cooperatives and other agribusinesses, rural infrastructure providers and rural communities submitted statements for consideration by the committee.

“Farm Credit exists to serve agricultural and rural communities in good times and bad. Unfortunately, there are challenging economic indicators ahead,” said Stark. “It’s times like these that highlight the importance of Farm Credit—to remain that financial partner to producers and rural communities when the times get tough. We’ve been in our rural communities preparing our borrowers to weather the storm, and we’ll be here to see them through to the other side.”

Similar to the producers Farm Credit serves, the System has built financial strength in anticipation of the economic cycle through diversification in loan geography, industry and size.

“Farm Credit’s mission is to support rural communities and agriculture, irrespective of the economic climate,” said Stark. “We saw this downturn in commodity prices coming and have been building financial strength to make sure we can continue to fulfill our mission and support our customers.”

Low commodity prices coupled with high input costs are putting pressure on farmers and ranchers. Farm Credit has been working to make sure its customers have accurate information about the situation and are able to make good business decisions. Helping to somewhat offset the current price squeeze, debt-to-asset ratios on U.S. farmers are below the 30-year average and well below the levels seen in the mid-1980s. Also in contrast to the devastating downturn agriculture experienced 30 years ago, interest rates—and therefore debt costs—remain low.

“Farm Credit’s philosophy on credit today is this: we know our customers well, understand and respond to their needs and work cooperatively with them to analyze and structure our transactions to give them the best chance to succeed,” said Stark.

Michigan farmer and U.S. Army veteran Jed Welder also weighed in on the current economic conditions in agriculture and the value of Farm Credit. “This is a challenging time for farmers like me across the country. Right now, we are planting corn and soybeans with prices very near breakeven,” said Welder. “Having a lender that works with me, that knows my farm and the challenges I face, is more important than ever.”

Welder explained how he relied on Farm Credit, saying “They understood what I wanted to do and what I needed to run my operation, they made good, solid recommendations and over time became a trusted partner.”

Farm Credit is well known for its mission providing financing to all types of U.S. farmers and ranchers. In addition, Farm Credit’s agricultural mission includes financing aquatic producers, many farmer-owned cooperatives and other agribusinesses, and U.S. agricultural exports. A constant supply of credit to these areas has helped make agriculture one of the driving engines for the U.S. economy and allows U.S. agricultural producers to feed the world. 
 
Farm Credit’s mission beyond agriculture is just as important. Rural homebuyers face obstacles unknown in more urban settings and Farm Credit provides loans tailored to these unique circumstances. Farm Credit also provides financing for companies that provide vital infrastructure to rural communities, helping bring clean water to rural families, reliable energy to farms and rural towns, and modern, high-speed telecommunications that connect rural America to the rest of the world.  Modern infrastructure makes rural communities competitive, provides jobs, and helps improve the quality of life for rural families. 

The complete hearing can be viewed at http://www.agriculture.senate.gov/hearings.



Fifty-Plus Ag Groups Show Support for Farm Credit System

With farm and ranch commodity prices increasingly under pressure, concerns are growing that the agriculture economy may be entering a prolonged period of instability, making the role of the Farm Credit System more important than ever, the American Farm Bureau Federation and more than 50 agricultural groups wrote to the Senate Agriculture Committee.

"Credit availability in good times is singularly important to our respective members. Credit availability in tough times may well mean the difference between producers staying on the land or being forced to abandon their operations," the groups wrote.

The array of credit products offered by both the Farm Credit System and commercial banks, often in a collaborative and cooperative manner, ensures that farmers and ranchers and their industry sector partners have access to financial tools that are vital to their success, according to the groups.

"It is our belief that the Farm Credit System and commercial banks play a critical role in ensuring that farmers, ranchers and other rural Americans have access to constructive, competitive credit on an ongoing basis. We need all the resources that can be made available to sustain agriculture and rural America now and into the future," according to the groups.

The groups sent the letter ahead of a Senate Agriculture Committee Farm Credit System oversight hearing held today.



Vilsack on the U.S. International Trade Commission Report

Agriculture Secretary Tom Vilsack issued the following statement today in response to a study by the U.S. International Trade Commission (ITC) that found the U.S. agriculture sector will increase output if the Trans-Pacific Partnership (TPP) is passed.

"Today's ITC report echoes what every major reputable study on TPP has now found, from the Petersen Institute to the American Farm Bureau Foundation, which is that TPP will provide strong benefits for the U.S. agriculture sector, with agricultural output set to be $10 billion higher per year by 2032 than it would without the agreement. Agricultural exports drive 20 percent of U.S. farm income and trade is critical not only to the continued growth of not only the sector, but to rural communities at large. Throughout this Administration, we have expanded access of U.S. Agricultural products to new markets and TPP would further expand the markets for our American-grown products, allowing our goods to compete on a level-playing field and reach more consumers hungry for U.S. agriculture. If we don't act, not only will we lose these opportunities, we will be ceding our leadership in the region to China, allowing them to define the rules that the Pacific Rim plays by. We can't afford to delay passage; there is simply too much at stake."



International Trade Commission Report Shows Economic Benefit of TPP
 
Today, the U.S. International Trade Commission released its report on the economic benefit of the Trans-Pacific Partnership to the U.S. economy. National Cattlemen’s Beef Association President Tracy Brunner said this report confirms that TPP not only levels the playing field for U.S. beef exports, but also supports U.S. economic growth.

“Cattlemen and women worked closely with the administration through the U.S. Trade Representative to ensure TPP met the highest standards and lowered taxes and trade barriers in all member countries,” said Brunner. “We supported the conclusion of the agreement in Atlanta in October and have called on Congress to swiftly pass this agreement. This report clearly shows that TPP would not only lower the taxes on U.S. beef into critical markets like Japan and level the playing field with our competitors, it would provide a boon to the entire U.S. economy.”

According to the report, the TPP agreement would increase annual U.S. Gross Domestic Product by $42.7 billion and expand U.S. employment by close to 128,000 full-time equivalents by 2032 when the agreement is fully implemented. Moreover, the report estimates that ten years after full implementation those benefits would continue to grow, expanding U.S. GDP by $67 billion and employment by 174,000 FTE’s. For beef specifically, the Commission estimates that overall beef exports would be about $876 million higher once TPP is fully implemented and that it would have a moderate impact on U.S. beef imports.

“Cattle producers rely on foreign markets and international trade to grow demand for high quality U.S. beef,” said Brunner. “These markets add value to every head of cattle raised and fed in the United States. In order to compete with other global beef producing nations, we need the level playing field provided through TPP. U.S. producers have already lost more than $140 million in sales into Japan alone since 2015 due to their preferential trade agreement with Australia.”

Under the Japan-Australia Economic Partnership Agreement, Australian beef producers benefit from an 11 percent tax advantage on imports into that market. The USDA Economic Research Service estimates that without TPP, U.S. exports of beef to Japan will continue to decline by $105 million annually, or about eight percent. The TPP would immediately reduce the tax on U.S. beef and give Japanese consumers a choice in the retail market unbiased by price.

“The ITC report shows TPP will foster U.S. exports, grow U.S. jobs and spur economic growth,” said Brunner. “We continue to call on Congress to pass this agreement.”



USDEC, NMPF Respond to International Trade Commission’s economic impact analysis of Trans-Pacific Partnership
Joint statement from Tom Suber, president of the U.S. Dairy Export Council, and Jim Mulhern, president and CEO of the National Milk Producers Federation

“The Trans-Pacific Partnership is a historic pact. If properly implemented and enforced, on balance the agreement will represent a step forward for the U.S. dairy industry based on its improvements to the rules of the road governing trade among the 12 signatories. In addition, although the market access portion of the agreement fell short of the export opportunities our industry sought to secure, our economic analysis concluded that overall the TPP dairy market access provisions will be neutral to slightly positive.

“Included in the deal are groundbreaking new commitments on sanitary and phytosanitary issues, and significant improvements in how geographical indications (GIs) are handled. The geographical indications improvements have become especially important as the European Union continues to wield GIs as nontariff trade barriers and limit market access for U.S. dairy exporters.

“But the benefits of the TPP can only be realized if the United States assures that the signatories live up to their commitments under the agreement, as well as to their prior trade obligations. The TPP can only support the continued growth of our industry if the United States ensures that TPP advances U.S. dairy prospects compared to the status quo at the time of its conclusion, and that its provisions are fully implemented and aggressively enforced.”



Report Confirms Benefits To U.S. Of TPP Deal

A government report on the impact to the U.S. economy of an Asia-Pacific free trade deal confirms what the National Pork Producers Council and other agricultural and business groups have known: The Trans-Pacific Partnership (TPP) agreement will be good for U.S. agriculture, U.S. businesses and the U.S. economy.

The TPP, negotiations on which were initiated in late 2008 and concluded last October, is a regional trade deal that includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which account for nearly 40 percent of global GDP. The countries combined have more than 800 million consumers.

“The TPP will benefit American consumers, workers, businesses, farmers and ranchers, and we’re confident it will provide enormous new market opportunities for high-quality U.S. pork products,” said NPPC President John Weber, a pork producer from Dysart, Iowa. “America’s pork producers strongly support the TPP, and we urge Congress to quickly pass it.”

NPPC, which has been a leading voice in support of the TPP, believes the deal could be the “biggest commercial opportunity ever for U.S. pork producers.” Iowa State University economist Dermot Hayes estimates the agreement will exponentially increase U.S. pork exports to the Asia-Pacific region and help create more than 10,000 U.S. jobs tied to those exports.

According to a report released yesterday by the U.S. International Trade Commission (ITC), the TPP agreement is estimated to increase annual U.S. GDP by nearly $43 billion and to create almost 128,000 U.S. jobs by 2032, the year the agreement will be fully implemented; U.S. agricultural exports would rise by about $7.2 billion a year. The report estimates that 10 years after implementation, annual GDP would be $67 billion and 174,000 jobs will have been created.

“The ITC report confirms what we’ve known about the benefits of an agreement that eliminates tariff and non-tariff barriers to our products,” Weber said. “Not only will the TPP level the playing field for U.S. exports and, in fact, expand them, but it has the potential to become even bigger. For all intents and purposes, the agreement has become the global vehicle for free trade.”

A number of other countries in the region, including South Korea and the Philippines, already have indicated an interest in joining the TPP.

NPPC has expressed concern about a U.S. delay in approving – or even a rejection of – the trade agreement, pointing out that other countries are negotiating free trade deals in the Asia-Pacific region, including the China-led, 16-nation Regional Comprehensive Economic Partnership.

“The U.S. needs to act more quickly to get the TPP approved and implemented,” said Weber. “If we delay, we fall behind. And we certainly cannot afford either economically or geopolitically to walk away from the fastest growing region in the world.”



Citing ITC Report, ASA Calls on Congress to Get to Work on TPP

Pointing to a report issued Wednesday from the International Trade Commission showing the American agriculture industry as among the largest beneficiaries from a potential Trans-Pacific Partnership (TPP) trade agreement, the American Soybean Association (ASA) renewed its call for Congress to work toward passage of the 12-nation trade pact.

According to the report, by 2032 exports to TPP nations would increase by $27.2 billion, and the agricultural economy in the U.S. would grow by $10 billion, the greatest gain of any American industry sector. For soybean farmers, the benefits of the TPP come in the form of increased soybean meal sales domestically to meet demand created by increased meat exports to TPP nations.

“As we have said consistently, each sector within the American agricultural economy is very closely connected to the next, and nowhere is that more clear than in the case of soybeans and livestock. The TPP is a win for soybean farmers because it means more meat exports. When our partners in the pork, poultry, beef and dairy industries do well, we do well,” said ASA President Richard Wilkins, a soybean farmer from Greenwood, Del.

Specifically by market, the TPP would provide positive benefits for the U.S. food and agriculture sector, primarily through new export market access in Japan and Vietnam—two countries where the agricultural sectors are currently protected by high tariffs.

“Soybeans continue to see great success in the Asian and Latin American marketplaces, and we look forward to TPP expanding and growing that success,” added Wilkins. “None of that can happen, however, if the agreement continues to lay dormant waiting for Congress to do its job. We understand that the political environment is difficult in an election year, but that’s the job lawmakers signed on to do. TPP deserves a debate and a vote so these benefits can be realized.”



New Study: Trans-Pacific Partnership a Win for U.S. Agriculture

Yesterday, the U.S. International Trade Commission (ITC) released its report on the economic benefit of the Trans-Pacific Partnership (TPP) to the U.S. economy. Maryland farmer Chip Bowling, president of the National Corn Growers Association, said this report underscores the importance of TPP for America’s farmers and ranchers and called on Congress to pass the agreement this year.

“The ITC report confirms what we already know: the Trans-Pacific Partnership is a win for U.S. agriculture. At a time when the farm economy is struggling, TPP would be a big step in the right direction for America’s farmers and ranchers,” said Bowling.

The Trans-Pacific Partnership is a landmark global trade deal whose 12 nations represent about 40 percent of the world’s economy. The agreement must be passed by Congress.

According to the ITC report, TPP would increase agricultural exports by $7.2 billion. U.S. beef exports are expected to increase by $876 million, pork by $219 million, and poultry by $174 million, for a total meat export gain of almost $1.3 billion. Although corn exports would decline slightly, the dip would be more than offset by increased domestic demand for corn as a feed source for the livestock industry.

“NCGA is committed to helping the livestock industry grow demand for U.S. meat and dairy, here and around the world – which in turn increases demand for U.S. corn,” said Bowling.

The ITC projects that agricultural output and employment would both rise under TPP. According to a separate analysis by the American Farm Bureau Federation, TPP would raise farm incomes by $4.4 billion.

The ITC report also highlights the importance of TPP’s provisions on biotechnology and Sanitary and Phytosanitary (SPS) measures to help address non-tariff trade barriers faced by the U.S. corn industry. Bowling hopes Congress will move quickly to pass the agreement.

“The National Corn Growers Association has been pushing for TPP on the Hill because it is important for the entire U.S. farm economy. We urge Congress to vote in favor of TPP as soon as possible.”



American Farm Bureau Federation Statement Regarding the International Trade Commission's Report on TPP

"The U.S. International Trade Commission's report on the value of the proposed Trans-Pacific Partnership drives home the benefits the agreement would bring to America's farms and ranches.

"Our own analysis indicated farmers and ranchers would stand to gain $4.4 billion a year in added farm income with U.S. agricultural exports growing by $5.3 billion a year upon implementation of TPP. The ITC report suggests things could be even better, showing farm income up by $10 billion a year driven by net agricultural exports growing by $4.5 billion a year by 2032. Approving this deal would give U.S. agriculture greater access to some of the fastest-growing markets in the world at a time when we need market expansion like never before. America's farmers are already dealing with low prices and, due to the strong dollar, declining export competitiveness. We must expand to new customers overseas to keep our businesses alive and competitive. Every day we wait to approve TPP, we fall further behind our global competitors.

"U.S. agriculture depends on agreements like TPP to break down trade barriers and level the playing field in markets around the world. Farm Bureau will continue to urge Congress and the administration to get this deal done."



 An Alternative Take on ITC’s Mixed Score for Wheat under TPP

On Wednesday, the International Trade Commission (ITC) released its highly anticipated report on the economic impacts expected to accrue from the adoption of the Trans-Pacific Partnership (TPP). For the entire agriculture and food sector, the report forecasts a $7.2 billion increase in exports or a growth of about 2.6 percent by 2032 compared to the same time frame without TPP.

The report recognized that the U.S. wheat industry would see substantial gains in market access and subsequent exports to Vietnam where the United States currently competes at a tariff disadvantage to Australian suppliers. Specifically, the ITC notes that U.S. wheat and other grain exports to Vietnam would increase by a healthy 25.3 percent by 2032 under TPP. However, ITC also concludes that U.S. wheat exports to Japan would decline by 17 percent under TPP. Given our industry’s 60 years of experience in the unique Japanese market, we respectfully believe that ITC got this one wrong.

There are two distinct markets for wheat in Japan: one for high quality food grade wheat and one for lower quality, lower priced livestock feed wheat. Japan has consistently imported about 60 percent of its annual milling wheat needs from the United States, with Canada and Australia making up the balance. Because access to Japan’s milling wheat market would remain equal among the three suppliers under TPP and because Japan requires different types of wheat for distinct uses, we see no reason why U.S. sales would decline.

Regarding the feed wheat market, ITC notes that Canada would see higher feed wheat sales under TPP because it is a “low-cost producer.” If Canada has such an advantage over U.S. wheat producers, then why has U.S. wheat made up 45 percent of Japan’s feed wheat imports on average since 2013 while only 20 percent has been imported from Canada? The relative cost of feed wheat compared to alternative feed grain has far more to do with Japan’s feed import decisions than cost of production. As long as corn and other feed grain alternatives remain inexpensive Japan does not buy much feed wheat from any origin.

ITC’s statement that Canada is positioned to out compete the U.S. in either milling or feed wheat sales to Japan is out of touch with the reality of Japan’s preferences for U.S. wheat. It also fails to recognize that Canada’s competitive position with respect to the United States would be unchanged under TPP.

Modeling policy impacts to individual countries 16 years in the future is inherently difficult theoretical work. The reality is that TPP reduces barriers facing U.S. wheat farmers and keeps us on a level playing field with two of our largest competitors. That is particularly important because Canada and Australia continue to seek tariff advantages by negotiating and signing free trade agreements in competitive markets at a much more rapid pace than the United States.

“The assumptions made in the ITC report are disappointing and misleading,” said NAWG President Gordon Stoner. “U.S. wheat farmers stand to benefit from a lower MAFF (Ministry of Agriculture, Forestry, and Fisheries) markup and new market access in Japan and from being able to compete on a level playing field in Vietnam. Congress should act quickly to enable farmers to take full advantage of the potential economic opportunities at stake under TPP.”

What really sets TPP apart from past agreements is it creates a platform for future growth. Not only does it target one of the fastest growing regions in the world, but once enacted it becomes a forum for other countries to join. Countries in line to join TPP include Indonesia, the world’s second largest wheat importer, the Philippines and Thailand, also significant importers. Each country already signed FTA’s with Australia.

That is why U.S. wheat farmers remain convinced that we need swift consideration and approval of TPP.

“Every day that TPP implementation is delayed, our ability to compete on a level playing field in established and new markets erodes that much more. Wheat farmers need TPP, but so do our customers around the world,” said USW Chairman Brian O’Toole, a wheat farmer from Crystal, ND.



USITC Report Predicts Increase in Trade Deficit, Modest Gains Overall From TPP

The U.S. International Trade Commission (USITC) today released their economic assessment of the widely contested Trans-Pacific Partnership (TPP) trade agreement, predicting modest gains for the overall economy despite an increase in the United States’ already massive trade deficit. National Farmers Union (NFU) is skeptically weighing the report’s findings against the trade deal’s inadequacies.

“These reports are often overstatedly positive, which is why it’s striking that the USITC’s optimistic results only project very modest economic gains for TPP. The commission’s assessment of a gain of just .15 percent in U.S. GDP in the next 16 years, while increasing our massive trade deficit should raise serious alarms about the proposed benefits of this trade agreement,” said Roger Johnson, NFU president.

The TPP has been promoted by the Administration as a trade boon for agriculture that will break down trade barriers, but Johnson points out that with TPP, even agriculture does not stand to gain much with the rosiest of estimates. “Even agriculture, which is often touted as the most beneficially impacted sector of the economy, is only estimated to see a half percent gain over 15 years.”

The report highlights how damaging TPP will be for the nation’s trade deficit. The trade deficit currently represents a 3 percent drag on GDP, negatively impacting the overall economy.

“A trade deal that neglects to provide improvements to our $531 billion trade imbalance is not a deal we can get behind,” Johnson explained. “In this case, USITC not only predicts that TPP will not address the trade deficit, but will likely increase the deficit by $21.7 billion. The data support that our producers are historically better off trading with countries we don’t have trade agreements with compared to the ones that we do.”

Earlier this year, Johnson testified before the USITC, sharing similar concerns about TPP on behalf of nearly 200,000 family farmers and ranchers.

“TPP’s impact on agriculture and rural communities will perpetuate the same trends that have characterized the past 20 years of free trade agreements: greater consolidation; erosion of mid-sized farms; increased volatility in farm incomes; and depopulation of rural America,” he told administrators.

NFU will continue to urge Congress to thoughtfully consider opposing the TPP agreement in its current form.