Thursday May 26 Ag News

Fischer Introduces Bill to Alleviate Burdens for NE Producers

Today, U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Environment and Public Works Committee (EPW), introduced legislation that would provide regulatory relief for Nebraska’s agriculture producers. The bill, known as the Farmers Undertake Environmental Land Stewardship (FUELS) Act, would modify costly EPA regulations that could negatively affect farmers and ranchers with on-farm fuel storage. Senator Jim Inhofe (R-Okla.), the Chairman of the EPW Committee, joined Senator Fischer as an original cosponsor of the legislation.

Senator Fischer released the following statement this afternoon regarding the legislation:

“I am proud to introduce the Senate-version of the FUELS Act, which would provide relief for farms and ranches with on-farm fuel storage from unnecessary regulations meant for oil refineries. This legislation will lower costs and cut red tape for Nebraska families who work hard to feed the world.”

Barb Cooksley, President of Nebraska Cattlemen, released the following statement in support of the FUELS Act:
“Nebraska Cattlemen appreciates Senator Fischer’s help in providing much needed regulatory relief for on-farm fuel storage. The SPCC rule would subject Nebraska’s farms and livestock operations to the same rigorous regulations as major oil refineries. The EPA’s one-sized-fits-all approach would result in excessive compliance costs and threaten our agricultural producers, the lifeblood of our state.”

Steve Nelson, President of the Nebraska Farm Bureau, released the following statement in support of the FUELS Act:
“We greatly appreciate the leadership Sen. Fischer has demonstrated in introducing the FUELS Act. This legislation provides a much needed, common sense and reasonable approach to how farms and ranches are to be regulated under EPA’s SPPC rule. If enacted, this legislation will save Nebraska farmers and ranchers time, money and cut through needless red tape. We look forward to working with her to secure passage of this important piece of legislation.”

The EPA’s Spill Prevention, Control, and Countermeasure (SPCC) regulations were originally designed for major oil refineries, but over the past several years, the agency has threatened to subject the agriculture community to these regulations. This regulatory overreach would require farmers and ranchers to make costly structural upgrades to their facilities, placing tremendous burdens on farms and ranches when their fuel storage facilities do not pose significant risk to water quality.

In 2014, Senator Fischer successfully brokered a bipartisan provision in the Water Resources Reform and Development Act of 2014, which was eventually signed into law that addressed the EPA’s SPPC rule. Fischer’s provision provided an immediate 6,000-gallon exemption for agriculture producers. Additionally, the provision required the EPA to conduct a study to review and determine the most appropriate level of exemption for on-farm fuel storage between 2,500 and 6,000 gallons, based on significant risk of discharge to water.

In June 2015, the EPA published its study on the SPCC rule, which raised further concerns that Nebraska farms would still be significantly impacted by SPCC requirements and costs.

The 2016 Water Resources and Development Act contained important provisions that would provide increased flexibility for local stakeholders and communities as they manage and protect their water. However, Senator Fischer voted against the bill during the EPW Committee’s markup of this legislation because it did not address the inadequate EPA study and the SPCC fuel storage issue, which is critically important for Nebraska.

Senator Fischer’s FUELS Act would exempt the following from the SPCC rule:
·         Farms with 10,000 gallons or less of storage.
·         Farms with an aggregate above ground storage of 10,001 to 42,000 gallons and/or no history of spills. These farms would be required to maintain a self-certified spill plan to respond to any potential spills.
·         All aggregate above ground storage tanks for animal feed ingredients, regardless of capacity. 



Nebraska Corn 2016 Internships Announced

The Nebraska Corn Board (NCB) and Nebraska Corn Growers Association (NeCGA) are proud to support seven college students as interns starting this summer.

Five of the seven interns will be hosted by national cooperators of NCB, including: the National Corn Growers Association in St. Louis, Missouri and Washington, D.C., the U.S. Meat Export Federation in Denver, Colorado and the U.S. Grains Council in Washington, D.C. and internationally in the Panama City, Panama office. The other two internship programs will be yearlong internships in the Nebraska Corn offices in Lincoln.

“We are thrilled to once again be able to offer these various internship opportunities to an excellent group of students,” said Kelly Brunkhorst, executive director for the Nebraska Corn Board. “Nebraskans should be very proud of these bright and energetic collegiate candidates. They represent an insightful next generation of young people who will help bring a new dimension to producing food, feed, fuel and fiber for a growing world population.”

Below is a listing of students who were selected for this year’s internships and a short description of what they’ll be experiencing. You can keep up with these students and their experiences throughout the summer on Nebraska Corn’s blog entitled “Nebraska Corn Kernels.” Visit NebraskaCorn.blogspot.com to learn more.

The National Corn Growers Association headquarters’ office in St. Louis, Missouri, will host Lauren Stohlmann of Murdock, Nebraska, as their summer intern supported by a partnership between NCB and NCGA. Lauren will be a senior in Agricultural and Environmental Sciences Communications at the University of Nebraska-Lincoln. She will be primarily working with market development on the American Ethanol NASCAR sponsorship as well as participating in a variety of other communications and grassroots activities.

The National Corn Growers Association (NCGA) office in Washington, D.C. will host Colton Flower of Scottsbluff, Nebraska, as their summer intern supported by a partnership between NCB and NCGA. Colton will be a senior in Agricultural Education/Leadership with minors in Agribusiness-Entrepreneurship and Animal Science at the University of Nebraska-Lincoln. During his internship, he will be involved with a variety of agricultural issues related to environmental regulations, transportation, free trade agreements, biotechnology, ethanol, and energy.

The U.S. Meat Export Federation (USMEF), located in Denver, Colorado will host Kelsey Scheer of St. Paul, Nebraska, as their summer intern supported by a partnership between NCB and USMEF. Kelsey will be a senior in Animal Science with a Production and Management option from the University of Nebraska-Lincoln. She will be assisting with beef, pork and lamb specific projects, as well as promotions and international relationship opportunities.

The U.S. Grains Council (USGC) in Washington, DC will host Maddy Breeling of Omaha, Nebraska, as their summer intern supported by a partnership between NCB and USGC. Maddy will be a senior studying Global Studies, with minors in Business and National Security at the University of Nebraska – Lincoln. She will be working with the global programs team and assisting with preparation for international trade teams and other market development programs that help to develop demand for U.S. coarse grains and co-products.

In cooperation with NCB, the U.S. Grains Council will also host Andrea Gurney from Torrington, Wyoming, as their international intern in the Panama City, Panama office. Andrea will be a senior majoring in Agricultural Business at the University of Nebraska-Lincoln. She will be working with the western hemisphere team on issues related to global trade in food and agricultural products, assisting with communication to importers.

The NeCGA office in Lincoln is happy to welcome Laura Lundeen of Axtell, Nebraska, for a yearlong internship. Laura will be a junior in Agricultural Education with minors in Animal Science and Agronomy at the University of Nebraska-Lincoln. She will oversee NeCGA’s online communications as well as contribute to a variety of communication and outreach projects.

The NCB office in Lincoln is excited to welcome Morgan Schilling of McCook, Nebraska, for a yearlong internship. Morgan will be a senior studying Agricultural Education with a minor in Agronomy at the University of Nebraska – Lincoln. As part of his internship, he will oversee Nebraska Corn’s crop progress report placement, contribute to communication programs and projects and will help coordinate educational and promotional activities.

“Nebraska Corn’s internship program has been engaging students for over 20 years and has been a great investment into Nebraska’s agricultural future. As our board has observed, the educational and career advantages these internships have provided to students over the years, have been instrumental in motivating students go on to excel in agricultural focused careers,” added Brunkhorst.



Corn Groups Secure USDA Funds for Phenotyping Research

The U.S. Department of Agriculture (USDA) announced it will make available $250,000 to match checkoff investments from the Iowa Corn Promotion Board (ICPB), Illinois Corn Marketing Board and Nebraska Corn Board for phenotyping research. This is part of a larger $130 million research initiative announced by USDA to fund research, education, and extension projects. ICPB initiated the a phenotyping research initiative, known as Genomes to Fields, to expand our understanding of interacting effects that corn genetics and crop environments have on corn yields.

"We thank the USDA for providing us the ability to advance our plant productivity research," said Iowa Corn Research and Business Development Chair Curt Mether, a farmer from Logan, Iowa. "Our goal is to make the connection in understanding how genes of the corn plant perform under different environmental growing conditions and how various plant traits will be impacted. If scientists can predict how corn traits will perform, given their understanding of the genes in a hybrid and how they react to environment stressors, this will enable plant breeders to design better corn plants for improved productivity to meet the growing demand for food, feed and fuel in the future."

The key objectives of this research are to:

-- Develop a public corn phenotype database to allow study of mechanisms by which genes interact with the environment to influence traits

-- Develop new methods and devices to analyze the relationship between genetic, trait and environmental data to predict performance of plants

-- Be able to predict the growth and yield of a corn plant given the genetic background and the environment

-- Convert the corn genome sequence into functional knowledge

Scientists seeking funding from this USDA announcement must also request a letter of support from the Iowa Corn Promotion Board. Scientific proposals are due to USDA on July 28.

"This is another example of checkoff dollars being leveraged on behalf of corn farmers to improve long term profitability," explained Mether.



Iowa Corn Applauds Governor Branstad’s Extension of Retailers Renewable Fuels Incentives

Iowans driving flex fuel vehicles received good news this week as  Iowa Governor Terry Branstad signed into law a bill extending tax provisions for fuel retailers providing Iowa motorists with homegrown, renewable ethanol and biodiesel.

Senate File 2309 is an act that extends the per gallon income tax benefits for retail stations who choose to offer higher blends of ethanol (E15 and E85) and/or biodiesel (B5 and B11) to their customers at the pump through 2024. This bill passed by the legislature this session, with bipartisan support in both the Iowa House and Iowa Senate.

“We thank Governor Branstad and the Iowa legislature for providing continued support for retailers offering higher blends of ethanol and biodiesel to Iowa consumers at the fuel pump,” said Iowa Corn Growers Association President Bob Hemesath, a farmer from Decorah. “The renewable fuels industry provides 43,000 jobs to our state. These types of investments ensure the biofuels industry continues to thrive and support rural communities across our state.”

The E85 Promotion Tax Credit, available for fuel blends containing 70 to 85 percent ethanol, was extended at 16 cents per gallon through 2024.  The E15 tax credit, available for fuel blends containing 15 to 69 percent ethanol, was extended through 2024 at 3 cents per gallon from September 16 through May 31, and 10 cents per gallon from June 1 through September 15 to help alleviate the summertime blending issues for registered E15.



IFBF Economic Summit to feature panel of trade experts to examine critical export challenges and opportunities for farmers

A downturned economy has farmers facing uncertainty and a growing set of new challenges both on the farm and in the export market.  The 2016 Iowa Farm Bureau Economic Summit, titled “Buckle Up for Bumpy Ride,” to be held June 27 in West Des Moines, seeks to answer common questions farmers have about their challenges today and in the future.

One of the mounting challenges farmers face is challenges in the export market both from international competitors and high tariffs on beef and pork, limiting the U.S. exports of those commodities.  Additionally, here at home, the leading candidates for U.S. President have been critical of potential trade agreements, such as the TransPacific Partnership (TPP), which farmers consider essential for the sustainability of their family farms.

“Meeting these challenges and remaining competitive in the export markets is extremely important for Iowa crop and livestock farmers,” said Dave Miller, Iowa Farm Bureau Federation (IFBF) director of research and commodity services.  “That’s why exports is one of our focal points in our upcoming Economic Summit.”

IFBF’s June 27 Economic Summit features a panel of trade experts who will examine the numerous export challenges and opportunities, both domestically and internationally, that impact a farmer’s operation.  Miller noted that events that can affect exports are often difficult to read and comprehend, which is why the expert panel will provide summit attendees with clarity and a realistic outlook for the future of important trade deals.

The international trade panel at the summit will feature Erin Borror of the U.S. Meat Export Federation (USMEF); Sam Funk, chief economist of the United Soybean Board (USB); and Veronica Nigh Swerdlow, trade specialist for the American Farm Bureau Federation (AFBF).

“These presenters will provide us perspective on the potential for exports as well as an outlook for Congressional approval of the TPP and the proposed TransAtlantic Trade and Investment Partnership with the European Union,” Miller said.

Additionally, the panelists will look at trade, as it pertains to the 2016 U.S. Presidential campaign and the impact on farm exports.  Both expected nominees, former Secretary of State Hillary Clinton and businessman Donald Trump, have been critical of TPP and blamed the trade agreement for the loss of American jobs, and have expressed opposition to the multi-nation trade deal.

“There is a concern that these stances could roll back trade agreements or even set off a trade war,” Miller said.  “Historically, agriculture thrives under trade agreements, but feels the brunt of the negative impact during trade disputes.  It’s important for all of us in agriculture to see the potential consequences.”

The Economic Summit will also feature panels on other key issues facing farmers today, such as trends in land prices and rental rates, the ag lending climate and outlook for farm economy, and key technology such as big data and unmanned aerial systems or drones.

Mike Pearson of IPTV’s Market to Market will moderate the one-day event which will be held at IFBF headquarters, 5400 University Avenue in West Des Moines on June 27, beginning at 7:30 a.m.  There will also be special panel discussions on key issues and experts to take questions.

Summit registration, which includes access to all presentations and lunch, is $75 for Farm Bureau members and $100 for non-members.  Register now for this essential risk management seminar.  Visit www.iowafarmbureau.com or call Lavonne Baldwin at 515-225-5633 or email lbaldwin@ifbf.org.



Current National Drought Summary
droughtmonitor.unl.edu

This U.S. Drought Monitor week saw minor improvements in drought conditions in areas of the West including: northeastern California, northern Nevada, northwestern New Mexico, and southeastern Alaska. In Texas, persistent rainfall led to the complete removal of drought conditions from the state. In the Northeast, Northwest, and Southeast, short-term precipitation deficits, low streamflows, and pockets of dry soils led to further deterioration of conditions. Significant rainfall accumulations this week were observed along the western Gulf Coast, portions of the Mid-Atlantic, Northern Rockies, and Southeast. In southeastern Florida, seven-day rainfall totals were impressive with some coastal areas receiving nearly fifteen inch accumulations. Temperatures across most of the conterminous U.S. were below normal during the past week with the largest negative departures across the Central and Southern Plains, lower Midwest and Mid-Atlantic where average temperatures were four-to-ten degrees below normal. Conversely, temperatures were four-to-ten degrees above normal in the North Plains and High Plains of Montana.

The Plains
Across the Plains, only minor changes were made on the map this week including removal of the remaining area of Moderate Drought (D1) from west-central Oklahoma. Overall, the region was relatively dry in western portions while eastern portions received modest rainfall accumulations of generally less than two inches. Temperatures were two-to-ten degrees above average in the Northern Plains while further south below normal temperatures prevailed.

Looking Ahead
The NWS WPC 7-Day Quantitative Precipitation Forecast (QPF) calls for significant rainfall accumulations across the nation’s midsection – primarily focused on Texas, Plains, and western portions of the Midwest with accumulations from three-to-six inches while much of the South and Western U.S. area forecasted to be generally dry. The CPC 6–10 day outlooks call for a high probability of above normal temperatures in the eastern half of the U.S. and Far West while below normal temperatures are expected in the Desert Southwest, extending northward into the eastern Great Basin and Central Rockies. Below normal precipitation is forecasted for the Pacific Northwest, much of California, western Great Basin, and across portions of the Northeast while there is a high probability of above normal precipitation across the Northern Rockies, Plains, Mid-Atlantic, South, and Southeast.



FY 2016 Exports Forecast at $124.5 billion; Imports at a Record $114.8 Billion

Agricultural exports in FY2016 are forecast at $124.5 billion, which are $500 million below the projection and $15.2 billion below FY2015 exports - according to the most recent USDA Economic Research Service report issued Thursday afternoon. Grain and feed exports are forecast at $27.7 billion, up $500 million from the February forecast, primarily due to larger wheat and corn volumes and higher unit values for corn and sorghum. Oilseed and product exports are forecast at $26.1 billion, up $700 million in response to stronger soybean and soybean meal export volumes and higher soybean unit values. Cotton exports are forecast at $3.1 billion, down $100 million from the February forecast. The forecast for livestock, poultry, and dairy is lowered $300 million to $25.4 billion as lower dairy, poultry product, and beef exports are not offset by gains in other livestock products. The forecast for horticultural products is lowered $1.2 billion to $33.5 billion. This is the second consecutive quarter-to-quarter downward revision and the total would be the first year-over-year decline since FY2009. This reduction is mainly due to sharply lower unit prices of pistachios and walnuts, as well as reduced almond shipments to the EU and China.

U.S. agricultural imports are forecast at a record $114.8 billion, down $3.7 billion from  February, mostly from a decline in tropical products. The U.S. agricultural trade surplus is forecast at $9.7 billion, down from $25.7 billion in FY2015.  

See the entire report here... http://ers.usda.gov/media/2093596/us-trade-outlook-aes92.pdf.



USMEF Board Meeting Gets Underway in St. Louis

The U.S. Meat Export Federation (USMEF) Board of Directors Meeting and Product Showcase kicked off Wednesday in St. Louis, Missouri. Attendees were welcomed to the event by Richard Fordyce, director of the Missouri Department of Agriculture. Fordyce discussed the important role exports have played in making agriculture Missouri’s largest industry, and outlined several initiatives designed to promote agricultural development in the state – including programs designed to attract and retain young farmers and ranchers.

“If agriculture is going to maintain that No. 1 ranking in Missouri, we’re going to have to grow that new crop of leaders,” Fordyce said. “We need to work with young people to continue to ignite the passion they have for agriculture, continue to cultivate that interest, and move them forward in their agricultural careers.”

Fordyce also discussed his department’s efforts to promote Missouri’s agricultural products in international markets, including an upcoming trade mission to Cuba next week.

Wednesday’s keynote address was provided by Jonathan Cordone, USDA deputy under secretary for farm and foreign agricultural services. Cordone noted that USDA currently has 93 international offices covering more than 170 countries on behalf of U.S. agriculture. He stressed the importance of market access for U.S. products, which has been enhanced in recent years through negotiation and ratification of several trade agreements. But Cordone also acknowledged that trade agreements are only as valuable as the United States’ ability to enforce them.

“We have an excellent record of ensuring that countries cut their tariffs as they promise to do in our trade agreements, and historically this has been the primary force driving our increased exports to FTA partners,” Cordone explained. “But that’s not the whole story. There are non-tariff barriers that unjustly restrict our access in some markets, and USMEF and its members know better than most that other countries are increasingly deploying non-tariff barriers as their protectionist tool of choice.”

Cordone emphasized USDA efforts to address these barriers through bilateral engagement, noting, “This goes on every day, and without much fanfare at all.” He said it is important for USDA to better inform policymakers, industry stakeholders and the public about the “real-world success stories” resulting from this constant engagement with trading partners.

Also addressing USMEF members was Jesus Madrazo, Monsanto’s vice president for corporate engagement. Madrazo discussed ways in which Monsanto is collaborating with industry partners to meet growing global food demand, but to do so while promoting environmental stewardship and addressing concerns such as climate change, water usage and scarcity of agricultural land. He applauded the increased willingness of agricultural producers to engage with the public on these issues.

“It has been a real privilege to see how many more people are participating in conversations in social media and in other forums where agriculture did not show up in the past,” Madrazo noted. “Now we’re seeing the voice of agriculture represented in forums where consumers typically get their information, and that’s a great thing.”

In addition to the lineup of guest speakers, attendees also heard from USMEF Chair Roel Andriessen, who heads international sales for Tyson Fresh Meats. Andriessen gave USMEF members an update on the organization’s strategic planning efforts and outlined the process through which USMEF applies for funding from the USDA Market Access Program and Foreign Market Development Program.

USMEF President and CEO Philip Seng also addressed Wednesday’s opening general session, providing his thoughts on global market conditions and stressing the importance of exports in advancing growth and profitability in the U.S. meat industry. Seng lamented the recent increase in anti-trade sentiment in the U.S. political climate, noting the critical role trade has historically played in the country’s growth and development.

“Trade is being discussed – and being cussed – like never before,” Seng said. “But in my view, trade is really in our DNA.”

Thursday’s agenda includes a panel discussion on the impact of Russia’s recent decline as a meat importer, and how this is affecting trading patterns across the globe. A panel discussion will also be held on the impact of currencies and exchange rates on red meat trade. USMEF’s standing committees – the Pork and Allied Industries Committee, Beef and Allied Industries Committee, Exporter Committee and Feedgrain and Oilseed Caucus – will also meet.

Thursday evening features the USMEF Product Showcase, in which member companies will display beef, pork and lamb products for international buyers. This week USMEF is hosting 16 trade teams that include about 130 buyers from key markets across the world. In addition to attending the meeting in St Louis, these buyers had opportunities earlier in the week to observe U.S. meat production, processing and merchandising practices, and to visit several farming and ranching operations.



USGC Building On U.S. Coarse Grain Export Momentum

After months of struggling corn exports due to a strong U.S. dollar and larger than expected global supplies, U.S. corn exports are on the rise with key markets picking up demand late in the 2015/2016 marketing year. The U.S. Grains Council (USGC) will use this success to build momentum for corn exports into 2016/2017 and beyond.

As of May 19, sales of U.S. corn totaled 41.8 million metric tons (1.6 billion bushels) for the marketing year ending Sept. 30, which is down 1.2 million tons (47.2 million bushels) from the same time last year. However, the brisk pace of corn sales in recent weeks is narrowing that gap. For example, during the week of May 6 to 12, U.S. corn net sales were up 33 percent from the previous week and 13 percent from the prior four-week average.

“We are excited to see demand for U.S. corn increasing around the globe as we are three-quarters of the way through a tough marketing year,” said USGC President and CEO Tom Sleight. “Our efforts on the ground in more than 50 global markets have helped maintain and build this demand each and every day.”

The Council’s plans for the remainder of 2016 are aimed at continuing this uptick as well as laying the groundwork for ongoing demand in future marketing years.

A major upcoming program is Export Exchange 2016, a global conference sponsored by the Council and the Renewable Fuels Association (RFA) every other year that hosts 200 key customers from around the world who also attend pre- and post-tours of the United States’ production areas.

“The buyers who participate in this conference not only do business directly while there, they also make connections that facilitate future sales,” Sleight said. “This has become one of our premiere activities that helps build demand in the near future and over the long term.”

In addition to the trade teams coming into the United States for the Export Exchange event, the Council will host teams throughout the summer. One of the first teams of the season will happen in mid-June when Taiwanese swine producers, government officials, researchers and association representatives visit the Midwest to learn about both modern U.S. swine production practices and the U.S. coarse grains industry.

“Trade teams are a critical and unique part of USGC’s programming each year,” Sleight said. “These teams not only educate decision makers in export markets but also allow members of the U.S. industry to build personal relationships with their customers that can solidify long-term business and prompt new sales.”

Of course, the Council is also undertaking long-term demand building activities around the globe. Examples of these include aqua feeding trials in Vietnam and the Middle East and North Africa; working with distiller’s dried grains with solubles (DDGS) distributors in Southeast Mexico; promoting the clean air advantages of U.S. ethanol to interested Japanese audiences; and conducting technical programs to train the Peruvian industry on U.S. contracting procedures and purchasing specifications.

“USGC staff members around the world promote the high-quality U.S. brand that is invaluable to international buyers," Sleight said. "Whatever the market conditions, our work is never done."



NCGA Disappointed in House Failure to Support Inland Waterways Infrastructure

The National Corn Growers Association expressed disappoint that the House of Representatives failed to pass the FY17 Energy and Water Appropriations bill today and urged members to work collaboratively to find a way to pass this important legislation as quickly as possible.

"NCGA, along with 19 other ag groups, sent a letter to the House Appropriations Committee earlier this spring supporting the revitalization of our deteriorating inland waterways infrastructure, and our association remains resolute in its support of this key legislation," said NCGA Production and Stewardship Action Team Chair Brent Hostetler. "The House bill is important for our farmers who depend on the inland waterways system to export grain and to receive farm inputs like fertilizer for crop production. America's farmers sustainably produce food, feed and fuel for our nation, growing our economy with their growing crop. It is imperative that House members now do their part by finding a way to come together to pass this legislation."



‘GIPSA’ Rule Would Wipe Out TPP Benefits, Says NPPC

The significant benefits that would accrue to the U.S. pork industry from the Trans-Pacific Partnership Agreement would be wiped out if the Obama administration implements pending rules related to the buying and selling of livestock, the National Pork Producers told the Senate Committee on Agriculture, Nutrition & Forestry.

“Pork producers are very concerned about the so-called GIPSA Rule,” said NPPC past president Dr. Howard Hill, a pork producer and veterinarian from Iowa who today testified before the agriculture panel. “The livestock industry will be fundamentally and negatively changed, and the increased exports and jobs created from TPP will be negated” if the rule is implemented.

The U.S. Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration (GIPSA) is reproposing parts of the GIPSA Rule, which first was proposed in 2010 to implement provisions included in the 2008 Farm Bill. The regulations, however, went well beyond the Farm Bill provisions and would have had a significant negative effect on the livestock industry, according to analyses. A November 2010 Informa Economics study of the rule found it would have cost the pork industry more than $330 million annually.

Tens of thousands of comments, including 16,000 from pork producers, were filed in opposition to the rule, and Congress several times included riders in USDA’s annual funding bill to prevent it from finalizing the regulation. But no rider was included in USDA’s fiscal 2016 bill, and USDA earlier this year indicate it would move forward with new GIPSA rules.

On the TPP Agreement, Hill told the committee that NPPC strongly supports the Asia-Pacific trade deal, pointing out that its benefits will exceed all past U.S. free trade agreements and that it represents a tremendous opportunity for U.S. pork producers and for the entire U.S. economy.

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

“The agreement has become the de facto global trade vehicle, and other countries in the region already are lining up to get into it,” testified Hill. “The United States cannot afford either economically or geopolitically to walk away from the fastest growing region in the world. Congress must pass the TPP, and it must do so soon.”

Hill also addressed a potential challenge to pork producers: an outbreak in the United States of Foot and Mouth Disease (FMD). He called on Congress to appropriate funds to set up an FMD vaccine bank to deal with an outbreak, which would close U.S. export markets.



NCBA President Testifies Before Senate Ag Committee

Statement by National Cattlemen’s Beef Association President Tracy Brunner following his testimony before the Senate Agriculture Committee - A Review of the U.S. Livestock and Poultry Sectors; Marketplace Opportunities and Challenges:

“We appreciate the Senate Agriculture Committee holding this hearing; we see many more opportunities in the cattle industry than challenges. The challenges we do face are the result of regulation, specifically rampant over-regulation from this administration. We need the Senate to focus on defunding the EPA’s 'waters of the United States' final rule and pass the Trans-Pacific Partnership which would give us the best access ever negotiated into the Japanese market. Japan is already our largest export market for U.S. beef, but as the International Trade Commission report confirmed, TPP would add nearly $1 billion in beef exports. What we do not need is the USDA dictating how we market cattle or manage risk in the cattle industry. The industry has developed tools and alternative marketing arrangements that benefit cattle producers and consumers. We’re not asking the Senate to intervene in our contracts; we’re asking the Senate to play their role in expanding market access and ensuring we are not regulated out of business.”



NFU Defends Family Farmers and Ranchers in a Statement to the Senate Ag Committee

The Senate Agriculture Committee today convened a hearing to discuss opportunities and challenges in the livestock and poultry sectors, and National Farmers Union (NFU) encouraged Senators on the panel to hear from cow-calf producers as they grapple with the challenges facing the industry. In an independent statement submitted to the hearing record, NFU defended much-needed market relief efforts given the low prices and consolidated livestock market facing family farmers and ranchers.

“There are many challenges facing agriculture today. The livestock sector, like much of agriculture, is under economic stress with no near end in sight,” said NFU President Roger Johnson. “I applaud the committee for exploring these challenges at today’s hearing, and I urge the members of this panel to take a comprehensive look at the livestock industry as they move forward with considerations of the farm economy.”

In 2015, producers faced a dramatic decrease in beef prices, despite predictions of several years of higher-than-average prices. Forecasts by the USDA point to a prolonged period of depressed prices, and projected beef production remains high for 2017 – a scenario, NFU explains, that will be detrimental for beef producers to recover financial losses that ensued from the recent price decline. 

Additionally, a sharp decline in the number of family farmers and ranchers over the past decade due to a heavily concentrated cattle market makes the scenario more troubling for independent producers competing against the packers.

“The marketplace is tipped disproportionately against the family producer. Currently, four packers account for nearly 70 percent of the value of all U.S. livestock purchased for slaughter. Without protection from unfair, anti-competitive practices, independent producers face difficulty succeeding,” Johnson explained in his statement to the committee.

NFU urges ongoing support for mandatory price reporting rules that provide market transparency for producers large and small as well as the Packers and Stockyards Act, which ensures integrity and competitive fairness in the livestock market.

“NFU has advocated on behalf of farmers facing a lack of competition in meatpacking for all 114 years of our existence. We will continue to work with lawmakers and the administration to ensure the voice of independent producers is heard,” Johnson concluded.



Growth Energy Applauds Trump for Standing by Commitment to Support the RFS

Responding to a speech on energy policy by presumptive GOP presidential nominee Donald Trump, Emily Skor, CEO of Growth Energy, issued the following statement:

“In January, Mr. Trump said that he supports the Renewable Fuel Standard (RFS) and ethanol because ‘energy independence is a requirement if America is to become great again.’ We could not agree more. It is vital that Mr. Trump stay true to his principles on ethanol because the RFS is our country’s most successful energy policy.

“His announcement today that he would meet with Iowa Governor Terry Branstad about ensuring a strong RFS past 2022 is great news. The RFS protects affordable options for consumers at the pump, it reduces emissions, and without it, we would increase our dependence on foreign oil from countries like Saudi Arabia and Venezuela.
 
“Given both leading candidates for President support the RFS, we’re confident that America’s next president will earn the votes of renewable fuel supporters in North Dakota and across the country.”



Soy Growers Welcome MOU with Cuban Agribusiness Group

With a signing ceremony Thursday, the U.S. Agriculture Coalition for Cuba (USACC) and Cuba’s Grupo Empresarial Agricola (GEA) formalized an agreement between the two nation’s farm and food industries to re-establish the Cuban marketplace for U.S. food and agricultural products. As part of the agreement, both USACC and GEA will meet regularly to ensure that the relationship between both industries is mutually productive and beneficial. All this week, American Soybean Association (ASA) Vice President and Roseville, Ill., farmer Ron Moore is in Havana with USACC to interact with Cuban farmers.

“Our Cuban partners represent a great deal of promise for the American soybean industry,” said Moore. “The agreement that USACC is signing on to this morning is something that will help to ensure both American producers and Cuban buyers have what they need as our relationship continues to grow together.”

ASA supports policy to normalize relations with Cuba, including the full removal of the embargo.

“So much has changed since the era in which the Cuban embargo was put in place,” said Moore. “Since 1961, our countries have evolved, our industries have expanded, and our economies have matured. Cubans have an increasing opportunity to develop their economy, and Americans have an equally promising opportunity to help meet that demand. That’s why we’re here—to meet a burgeoning demand for meat protein, for cooking oil and for the array of other products that American producers can provide.”



IGC Hikes World Wheat Outlook

The International Grains Council on Thursday increased its forecast for global grain production in 2016-17 by 10 million metric tons to 2.015 billion tons on improving prospects for the wheat harvest in the E.U., Russia and the U.S.

If the forecast is correct, the 2016-17 harvest will be the second-largest on record after the 2.046 billion-ton crop of 2014-15, the London-based IGC said.

The wheat crop forecast was lifted by 5 million tons to 722 million tons. The corn forecast was raised 5 million tons to 1.003 billion tons as harvest prospects improved in the U.S. and Argentina.

As a result, the IGC expects global grain stocks to climb from 468 million tons at the end of the current year to a record-high 474 million tons at the end of 2016-17. China's share of that total could exceed 40%.

For the current 2015-16 crop year, the IGC cut its forecast for soybean production by 5 million metric tons to 314 million tons, a 2% drop from the previous year's output, due to bad weather in South America.

In a "highly tentative" forecast for 2016-17, the IGC said soybean production could rebound to 320 million tons, but this year's smaller harvest and increasing demand will mean global stocks are likely to dwindle. It cut its soybean stocks forecast for the end of 2016-17 by 3 million tons to 29 million tons.



Vilsack to Make First Official Visit to Puerto Rico

Agriculture Secretary Tom Vilsack will make his first official visit to Puerto Rico where he will highlight the U.S. Department of Agriculture's ongoing commitment to addressing food security and rural opportunity in the Commonwealth. While in Puerto Rico, Secretary Vilsack will meet with various officials from the Commonwealth; visit a National Forest research station; engage local farmers and ranchers; convene a group of financial leaders focused on finding opportunities for rural investment; and make several important announcements to address food security and rural development.

Secretary Vilsack is the latest senior Obama Administration official to travel to Puerto Rico, following visits from Secretary of the Interior Sally Jewell, Secretary of Health and Human Services Sylvia Burwell, Secretary of the Treasury Jack Lew, Secretary of Transportation Anthony Foxx, Secretary of Veterans Affairs Robert McDonald, Secretary of Housing and Urban Development Julian Castro and Secretary of Education John King earlier this year to urge action by Congress to provide Puerto Rico with the tools it needs to address the crisis, restructure its debt, support reform and enable growth.

While in Puerto Rico, Secretary Vilsack will meet with staff from seven USDA agencies working in the Commonwealth: Animal and Plant Health Inspection Service (APHIS); Agricultural Research Service (ARS); Farm Service Agency (FSA); Food and Nutrition Service (FNS); U.S. Forest Service; Natural Resources Conservation Service (NRCS); and USDA Rural Development. Since 2009, USDA has invested more than $20 billion in Puerto Rico across various programs, including nutrition, infrastructure, housing, farming and ranching, conservation and forestry, and research.

On Wednesday, Secretary Vilsack will meet with Governor Alejandro García Padilla, Senate Majority Leader Eduardo Bhatia, and Speaker of the House of Representatives Jaime R. Perelló Borrás. Later that day he will tour the U.S. Forest Service Sabana Field Research Station and El Yunque National Forest to highlight USDA's key research initiatives in the Caribbean Climate Sub Hub. USDA has established a network of seven regional Climate Hubs and three Sub Hubs to support applied research and provide information to farmers, ranchers, advisors, and managers to inform climate-related decision making and region-specific adaptation strategies.

On Thursday, Secretary Vilsack will highlight Puerto Rico's amazing growth potential and announce a series of additional federal investments in Puerto Rico's future. The day will begin with a meeting of farmers, ranchers, producers and agriculture-related businesspeople to gauge the needs and opportunities of Puerto Rico's agricultural sector. Secretary Vilsack will then convene a meeting with a dozen investors, financial leaders, economists and entrepreneurs to discuss rural economic opportunity and the potential to leverage public and private resources in a more integrated and coordinated way in the Commonwealth to create a brighter future for its residents.

Since 2006, Puerto Rico and the 3.5 million American citizens who call the Commonwealth home have endured a decade-long recession and are facing a serious crisis that requires immediate congressional action. Fiscal conditions have contributed to record numbers of citizens leaving Puerto Rico for the mainland. The Obama Administration has worked extensively with Puerto Rican officials to find solutions to the Commonwealth's fiscal crisis. However, only Congress has the authority to provide Puerto Rico with the necessary tools to address the crisis and to lay the foundation for the Commonwealth's recovery, and Congress must act now.