Tuesday May 24 Ag News

Ricketts Announces International Trade Mission to Asia

Today, Governor Pete Ricketts announced he will lead a trade mission, November 9-15, 2016 to meet with investors and host events in Xi’an, Shanghai, and Hong Kong to strengthen Nebraska’s relationships with the state’s fourth largest trading partner.  The Governor will be joined by Director of Economic Development (DED) Courtney Dentlinger and Nebraska Director of Agriculture (NDA) Greg Ibach among others on the trade mission.

“China’s growing economy offers nearly boundless opportunities for Nebraska ag producers and manufacturers,” said Governor Ricketts.  “This trade mission will help Nebraska businesses build on our existing relationships and strengthen our relationship with our fourth largest trading partner.  Nebraska businesses who do business in China or that are hoping to enter this market should contact DED or NDA to express their interest in joining the trade mission.”

The Governor also mentioned that Nebraska business representatives who join the trade mission will get the opportunity to meet with business, ag business, chamber of commerce, government, and academic officials.

“Nebraska has had a close trade relationship with China for years,” said DED Director Courtney Dentlinger.  “The Governor’s decision to lead this trade mission to China will offer the perfect opportunity to build on existing relationships.  For companies interested in China, but who have not established themselves in the market, this is an opportunity to grow their business internationally in the world’s second largest economy.”

NDA Director Greg Ibach emphasized the importance of this trade mission not only to Nebraska’s farmers, ranchers, and agribusinesses, but to the entire state.  Agriculture is Nebraska’s largest industry.

“In the last few years Hong Kong has grown into one of the top export destinations for beef from Nebraska and we’re working diligently to nurture continued growth,” said Director Ibach.  “As Asia continues to grow, so does their appetite for Nebraska proteins.  China has been a major importer of Nebraska agricultural products.  During this mission, we will also showcase Nebraska pork products in the Southeast Asia marketplace.”

Ibach also pointed out that the Chinese market is an extremely important market for soybeans, with China purchasing over half of U.S. exports several years running.”

DED and NDA worked with the Governor to build the itinerary for the fall trade mission.  Xi’an, the capital of Shaanxi Province, is a key economic hub for Northwestern China, and strategically important to accessing markets in China’s inner regions.  Shaanxi Province shares many similarities with Nebraska in that it is an agriculturally rich area of China.  It also serves as the gateway to the Silk Road.

During the trip, trade mission members will participate in the 23rd China Yangling Agricultural Hi-Tech Fair while in Yangling, which is located in Shaanxi Province just outside of Xi’an.  The fair offers roughly 1.7 million square feet of exhibition space and is expected to draw 1.6 million visitors over five days, making it China’s premier agriculture fair.

Shanghai, one of the world’s largest metropolitan areas with a population of 24 million, is a leading business center, consumer market, and key entry port into China.  Nebraska established a trade office in Shanghai in 2013 to help its businesses make key connections and work with Chinese companies seeking opportunities in the U.S. and globally.

Hong Kong is one of the largest importers of Nebraska beef and a key market for other Nebraska products.  The city also is an important gateway for business throughout East Asia.  In 2015, Hong Kong was Nebraska’s sixth largest export market, accounting for $234 million in goods purchased from here with approximately 80 percent being exported food products.

Because space is limited, company officials interested in participating in the trade mission should contact Cobus Block at 402-480-5806 or cobus.block@nebraska.gov or Stan Garbacz at 402-471-2341 or stan.garbacz@nebraska.gov to express their interest soon.



We Support Agriculture to Host Livestock Crisis Management Seminar

Demand for meat, dairy, and eggs is on the rise, but so are calls to know more about how farm animals are treated.   Unfortunately, there are individuals and organizations, with agendas beyond improving animal welfare, who would like to tell that story for us.

In addition to a management plan for proper animal husbandry on your farm, crisis management plans for expected or unexpected site visits protect your family’s operation, and in the end promote consumer and lender confidence.

Please join We Support Ag, along with regulatory, legal, public relations, and agriculture experts, for a discussion about the necessity of crisis management plans.   

WHEN
Tuesday, June 14, 2016 from 9:00 AM to 3:00 PM (CDT)

WHERE
Holiday Inn Kearney - 110 South 2nd Avenue, Kearney, NE 68847

RSVP and view the full agenda here...  https://www.eventbrite.com/e/we-support-agriculture-crisis-management-seminar-tickets-25588505910. 



BLUEGRASS VS BROME
Bruce Anderson, NE Extension Forage Specialist

               Bluegrass is heading out and overrunning brome pastures throughout the region this spring.  There are some ways, though, to get brome dominance back into these pastures.

               Pastures greened up early this spring during our warm March weather.  Unfortunately, bluegrass in pastures also matured and headed out early, reducing both its growth potential and forage quality.

               This early heading also showed us we had much more bluegrass in these pastures than most of us realized.  So how do you get rid of this bluegrass and bring back the higher producing brome.

               It might be nice if a magic chemical would kill bluegrass and not hurt brome but I’m afraid there isn’t anything labeled and available to do that yet.  So we need to use other methods.

               It starts with creating a growth environment that is better for brome than bluegrass.  That means higher soil fertility and improved rotational grazing management.

               As a taller, potentially higher yielding grass, brome responds more to fertilizer than does bluegrass, especially nitrogen.  Spring fertilization can give brome a competitive advantage over bluegrass.

               But we can’t stop there.  Bluegrass invades and thrives in areas that are grazed short and remain short for lengthy periods of time.  Unfortunately, this is how most brome pastures are grazed.  What you need to do is leave more grass in pastures when you move to a new area, shorten the length of time a pasture is grazed to no more than four or five days, and let pasture regrow longer before grazing again.

               The only practical way to do this is to subdivide with more cross-fences.  It probably takes ten to twelve smaller pastures to make a big change.  I know it sounds like a huge undertaking, but if you are serious about improving your pastures, it’s worth doing.



World Pork Expo Seminars Offer the Latest Ideas and Information

World Pork Expo attendees will have access to leading pork experts and the latest ideas and information at a variety of seminars scheduled for Wednesday, June 8 and Thursday, June 9. Included in their Expo admission price, pork producers and their staff can participate in more than a dozen educational seminars addressing topics such as business management, production technologies and future developments impacting pork operations. The seminars are just one of many events featured at the 2016 World Pork Expo, brought to you by the National Pork Producers Council (NPPC), June 8-10 at the Iowa State Fairgrounds in Des Moines, Iowa.

“The Expo seminars provide a tremendous opportunity for pork producers running all types and sizes of operations to collect new ideas to take back home,” says John Webber, NPPC president and pork producer from Dysart, Iowa. “Pork producers are continually learning, and these seminars offer forums where producers can ask questions specific to their operations, exchange insights and develop business strategies for the future.”

Business seminars target competitive advantage
This year’s business seminars will present ideas for producers to maximize their competitive advantages from the farrowing house to the global marketplace.

On Wednesday, June 8, from 9:30 a.m. to noon, Hamlet Protein will feature experts in piglet nutrition and gut health discussing the development of the post-weaning gut and how to optimize performance. They will delve into the role of weaning age and the implications of ingredient selection, as well as whole-diet-formulation targets.

On Wednesday from 1 to 2 p.m., and again from 3 to 4 p.m., Tonisity, Inc., will present insights into preparing piglets at birth for a successful, low-stress weaning. Researchers will share on-farm trial results of a new isotonic protein drink that helps suckling pigs stay hydrated, which in turn can decrease pre-weaning mortality, increase weaning weights, improve gut function and digestion, and more.

Completing the business seminar lineup on Thursday, June 9, from 8:30 a.m. to noon, Boehringer Ingelheim Vetmedica, Inc., will host “Join the Race – Maximize Your Competitive Advantage.” Presenters will discuss opportunities in a global market, how to anticipate and respond to changing conditions and how on-farm strategies impact current and future success.

PORK Academy addresses on-farm issues
Included in Expo’s free seminar lineup is PORK Academy, long valued for providing practical and forward-looking information. Presented by the Pork Checkoff, PORK Academy sessions will take place in the Varied Industries Building throughout Wednesday and Thursday. This year’s offering will address such timely matters as adapting to upcoming changes in on-farm antibiotic use, preparing for a Common Swine Industry Audit, addressing cybersecurity and much more.

“Expo seminars provide wonderful insights that pork producers can use to make their operations more productive and efficient, but there are many other things to see and do,” says Sheila Warrick, Expo’s general manager. “Expo hosts the world’s largest pork-specific trade show, which has even more exhibit space this year, so producers may want to plan to allow a bit more time to view all the latest innovations.”

Trade show hours run from 8 a.m. to 5 p.m. on Wednesday, June 8 and Thursday, June 9, as well as 8 a.m. to 1 p.m. on Friday, June 10. Attendees can enjoy free pork lunches all three days of Expo at The Big Grill. The World Pork Expo Junior National hog show begins on Monday, June 6. An open show takes place on Friday, June 10, with breeding stock sales rounding out the week on Saturday, June 11, from 8 a.m. until they're completed (at approximately noon).



Study: Corn Exports Add $74.7 Billion To U.S. Economy

Exports of U.S. corn and corn products generated $74.7 billion in annual economic output in 2014, with sales of all U.S. feed grain products contributing $82 billion, according to a new analysis conducted by Informa Economics.

According to the analysis, the export of corn and corn products increased the U.S. gross domestic product (GDP) by $29.8 billion over what would have occurred without such exports. The number of full-time equivalent jobs linked directly or indirectly to corn exports totaled 332,787.

All feed grains examined – corn, corn products, sorghum and barley – increased the U.S. GDP by $33 billion over what would have otherwise occurred, affecting 371,536 jobs.

“Corn – whether in the form of feed, ethanol, or meat and dairy – is a major driver of the U.S. farm economy. Exports impact not just farmers and ranchers, but the entire U.S. economy,” said National Corn Growers Association President Chip Bowling, a farmer from Newburg, Maryland. “That’s why it’s so important that farmers and ranchers have access to international markets, and why we need global trade agreements such as the Trans-Pacific Partnership that give us a chance to compete.”

The study, which was commission by the National Corn Growers Association (NCGA) and the U.S. Grains Council (USGC), quantifies the economic benefits nationally and to each U.S. state and selected Congressional districts of grain exports, showing results for corn, ethanol and its byproduct distiller’s dried grains with solubles (DDGS), corn gluten feed and the corn equivalent of meats, in addition to sorghum and barley.

Every $1 in exports of grains and grain products generates an additional $3.23 in business sales across the U.S., the study found. The positive economic effects of corn exports benefit not only agriculture, but also wholesale trade, real estate, oil and natural gas production, and the banking and financial industries.

“Farming is a global business, and this study shows how immense the impact of grain exports is on not just the agriculture economy, but our national economy,” said Alan Tiemann, USGC chairman and a farmer in Nebraska. “The work our industry does to build new markets and grow our relationships with those overseas who rely on U.S. grains is critical for U.S. farmers’ profitability.”

The study also touched on the negative consequences to reducing exports of grain products, showing that if these exports were suddenly halted, more than 47,000 jobs and $2.8 billion in GDP would be lost in the farming, ethanol production and meat production industries alone.

Bowling said this study underscores the need for the Trans-Pacific Partnership, the pending trade agreement with 11 other countries that will expand farmers’ market access to the Asia-Pacific region.

“America’s farmers and ranchers have a lot to gain from new trade agreements such as TPP, but there is also a consequence for not moving forward,” Bowling said. “Every day we delay TPP means lost markets, which this study demonstrates has a ripple effect throughout the farm economy. That’s why Congress needs to act. The sooner TPP is passed, the better for America’s farmers and ranchers.”



EPA, Army Corps of Engineers Violate Law, Oppress Farmers in California and Elsewhere, Farm Bureau Tells Congress

The Environmental Protection Agency and Army Corps of Engineers have violated their own regulations and effectively invented new ones in enforcing the Clean Water Act, the American Farm Bureau Federation said today.

Don Parrish, senior director of congressional relations at AFBF, told the Senate Subcommittee on Fisheries, Water and Wildlife that the Army Corps' novel interpretations of environmental law are threatening the very livelihoods of ordinary, middle-class Americans who happen to farm for a living.

"Based on what we see in California, it is clear that the expansions in jurisdiction over land and water features on the farm are already happening," Parrish told the subcommittee. "Most ordinary farming activities conducted in areas under jurisdiction will require permits if and when the Corps chooses to demand them. And when they demand permits, delays and costs will mount until most farmers simply give up. Congress needs to step in and give farmers some real certainty so they can plan their farming operations and protect the environment at the same time."

Parrish's testimony also included a detailed analysis of recent Army Corps actions by Jody Gallaway, an environmental scientist and California Farm Bureau member who has consulted on numerous discussions between local farmers and the Corps. The Army Corps interprets and executes environmental regulations that are largely determined by the EPA.

Parrish cited numerous examples of EPA and Army Corps mismanagement:
-    The Corps has made jurisdictional determinations and tracked farming activities based on classified aerial photographs and LIDAR imagery that is not publicly available, even to farmers under investigation
-    Army Corps officials have forced farmers to sign non-disclosure agreements - gag orders, in effect - as part of their enforcement actions.
-    One California farmer invested tens of thousands of dollars to map his private property to ensure his farming activity would avoid polluting local watersheds. The Corps, in response, threatened enforcement proceedings over construction of roads and ponds completed years before the farmer owned the property.
-    In the Army Corps' Sacramento district, any plowing through a wetland requires permits that typically cost hundreds of thousands of dollars in engineering fees, even though the Clean Water Act exempts plowing from permitting.
-    The Army Corps has issued menacing letters to farmers who have changed from alfalfa hay farming to cattle grazing and back, despite the absence of any law to support their objections.
-    The Corps has told farmers to stop working when it merely suspected they were plowing too deep or changing land use. The Corps' selective enforcement of this interpretation means it can now tell farmers where they may and may not farm, and what they may grow.
-    The five-year drought has forced many farmers to temporarily fallow land or change crops based on changes in irrigation and market conditions. Oblivious to such obvious economic distress, the Corps has repeatedly required permits for ordinary plowing necessary to prepare the ground to change crops, further compounding the economic dislocation farmers have felt in the Central Valley.

Parrish's testimony can be found here: http://www.fb.org/assets/news/DonParrishBioAttachmentTestimony.pdf.



NCBA President Testifies on the Farm Economy

Today, National Cattlemen’s Beef Association President Tracy Brunner testified before the House Agriculture Subcommittee on Livestock and Foreign Agriculture. Brunner, a fourth generation rancher and cattle feeder from the Flint Hills area of Kansas, stressed to the subcommittee that over-regulation poses the greatest threat to the profitability of cattle producers.

“Today we ask for no direct action from our government in our cattle marketing systems and forums,” said Brunner. “The cattle industry relies on the transparency of price discovery to send clear signals up and down the beef supply chain. We have recognized the volatility in the cattle futures market and we are working directly with the CME Group to find ways to address it. Our joint NCBA/CME working group is analyzing potential changes to ensure the markets work for producers who are using these tools to manage their market risks. Without futures contract integrity, our industry will abandon the use of these markets as a risk management tool.”

The hearing also addressed the assertion by USDA Secretary Vilsack that he would instate the proposed Grain Inspection, Packers and Stockyards Administration marketing rule that resulted from language included in the 2008 Farm Bill.

“We have worked for years to find new and innovative ways to market cattle,” said Brunner. “Alternative marketing arrangements have been studied by USDA and independent groups, and the results show that these alternatives benefit producers and consumers alike. The proposed GIPSA marketing rule would have made USDA the ultimate arbiter of how cattle are marketed and taken away our ability as cattle producers to market cattle the way we want. That is why bi-partisan appropriations language defunded any additional work on, or implementation of, the proposed GIPSA marketing rule. We do not need USDA dictating how we can or cannot market our cattle.”

In closing, Brunner asked the subcommittee to help in easing the regulatory burdens faced by the industry.

“Solving our price problems relies on addressing the true issues of consequence to the cattle industry,” said Brunner. “Taking action to reform the Endangered Species Act, leveling the playing field for beef exports by passing the Trans-Pacific Partnership, and helping us keep EPA at bay would go a long way in easing the pressures on our industry.”



NPPC Says ‘GIPSA’ Rule, TPP Could Affect Producers

Although the U.S. pork industry is in good economic shape, pork producers’ future fortunes can be affected – for good or for ill – by opportunities and challenges with which they are presented, the National Pork Producers Council today told members of the House Committee on Agriculture’s livestock subcommittee, which was continuing a series of hearings on the rural economy.

A challenge of particular concern to the pork industry is proposed rules from the U.S. Department of Agriculture related to the buying and selling of livestock, said NPPC board member David Herring, a pork producer from North Carolina who testified before the Subcommittee on Livestock and Foreign Agriculture.

USDA is reproposing parts of the so-called GIPSA (Grain Inspection, Packers and Stockyards Administration) 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.

“We have grave concerns [the reproposed GIPSA Rule] will mirror the 2010 proposal,” Herring told the livestock panel. “If it does, the livestock industry will be fundamentally and negatively changed.”

Another potential challenge, said Herring, is an outbreak in the United States of Foot and Mouth Disease (FMD), which, if it occurred, would immediately stop U.S. meat exports. He called on Congress to appropriate funds to set up an FMD vaccine bank to deal with an outbreak.

Herring also reiterated NPPC’s support for the Trans-Pacific Partnership, telling the subcommittee the benefits of TPP will exceed all past free trade agreements and represents a great 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 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.

“Because other Asia-Pacific trade agreements are being negotiated without the U.S.,” Herring testified, “the United States can’t 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.”



NMPF Chairman Tells House Agriculture Subcommittee That Dairy Farm Safety Net Needs Work

The challenging economic conditions affecting America’s dairy farmers call for improvements by Congress to the federal safety net program created in the 2014 Farm Bill, according to Randy Mooney, chairman of the National Milk Producers Federation, in testimony Tuesday before the House Subcommittee on Livestock and Foreign Agriculture.

The hearing focused on the state of the livestock sectors in America, including dairy farming – which is facing the worst global turndown in milk prices since 2009. Mooney, a dairy farmer from Rogersville, Missouri, who also serves as chairman of Dairy Farmers of America, urged the committee to work with NMPF to reassess how the dairy Margin Protection Program (MPP) can be improved in the future.

“I’m confident that the MPP is the right dairy program for the future,” Mooney said of the program, which was developed following the recession-induced dairy price crash seven years ago. The program offers dairy farmers the ability to purchase insurance-type coverage against poor margins caused either by low milk prices or high feed costs.  “But the program is not completely fulfilling its intended objective as an effective safety net. For many farmers, the MPP is simply not enough to protect them in this economic environment.”

Mooney explained that when the Farm Bill was written, the MPP formula for calculating feed costs was altered, which understated the true cost of feeding a dairy herd.  At the same time, while the feed cost element was diminished, the farmer cost of insurance premiums was not reduced.  The MPP “has been less effective as a result,” Mooney said.

“In 2015, many farmers saw that the MPP didn’t pay out much, even at the highest levels of coverage. So in 2016 they opted for the least expensive – and minimal – level of coverage available. Had Congress not reduced the feed ration, more farmers would have seen benefits in 2015 and participated at higher levels this year,” he said.

Mooney said that the MPP remains a work in progress, and that farmers want to work with Congress and the USDA to “improve the effectiveness of MPP for all dairy producers.”  He said recent administrative changes made by USDA to the program will enhance the MPP’s flexibility and make it more useful for farmers.

Mooney also addressed two other pressing issues of importance to dairy farmers:  the threat posed by a lack of a federal standard on the labeling of foods made with biotechnology, and the promise of new export markets as a result of the pending Trans-Pacific Partnership agreement.

Mooney said that both chambers of Congress must establish a national law on how to define and label foods with genetically-modified ingredients prior to July 1, 2016, when Vermont’s law will take effect requiring labels on such products. In the absence of clear federal standards for food labeling, more states will pass differing versions of legislation addressing food biotechnology, leading to a confusing series of claims and mandates across the entire food marketing chain, Mooney said.

“Failure by Congress to address this issue threatens the viability of not only my farm, but also the 30,000 farmers I represent. It also threatens our ability to feed the world’s growing population,” he said. Mooney said that if biotech crops are stigmatized and their usage declines, it will be harder to improve on agricultural sustainability through reductions in the use of water, pesticides and fuel.

Mooney also addressed the importance of free trade agreements that deliver new opportunities to America’s dairy sector. The U.S. dairy industry has gone from exporting less than $1 billion in dairy products in 2000, to more than $5.2 billion of exports in 2015, thanks to well-crafted trade deals.

NMPF supports the Trans-Pacific Partnership (TPP), Mooney said, but is adamant that each participating country must be held to its commitments. He said important implementation and enforcement issues must be addressed as Congress prepares to consider TPP.

In the case of the Trans-Atlantic Trade and Investment Partnership (TTIP) with the European Union, Mooney expressed concerns about the EU’s lack of good-faith commitment to opening its markets to agricultural trade, and its attempt to establish new non-tariff trade barriers through the use of Geographical Indicators. Mooney urged caution in securing an agreement with the EU.

“The EU has not demonstrated a good-faith commitment to open agricultural trade,” said Mooney. “The U.S. must proceed cautiously by securing clear commitments from the EU to guard against the imposition of future trade barriers.”



U.S. Organic Sales Reached New Record in 2015

The booming U.S. organic industry posted new records in 2015, with total organic product sales hitting a new benchmark of $43.3 billion, up a robust 11 percent from the previous year's record level and far outstripping the overall food market's growth rate of 3 percent, according to the Organic Trade Association's 2016 Organic Industry Survey.

The industry saw its largest annual dollar gain ever in 2015, adding $4.2 billion in sales, up from the $3.9 billion in new sales recorded in 2014. Of the $43.3 billion in total organic sales, $39.7 billion were organic food sales, up 11 percent from the previous year, and non-food organic products accounted for $3.6 billion, up 13 percent. Nearly 5 percent of all the food sold in the U.S. in 2015 was organic.

2015 was a year of significant growth for the industry despite the continued struggle to meet the seemingly unquenchable consumer demand for organic. Supply issues persisted to dominate the industry, as organic production in the U.S. lagged behind consumption. In response, the organic industry came together in creative and proactive ways to address the supply challenge, to improve and develop infrastructure, and to advocate for policy to advance the sector.

Organic Fruits & Vegetables retained its longstanding spot as the largest of all the major organic categories with sales of $14.4 billion, up 10.5 percent. The demand for fresh organic was most evident in the continued growth of fresh juices and drinks, which saw explosive growth of 33.5 percent in 2015, making it the fastest-growing of all the organic subcategories. The fastest-growing of the eight major organic categories was condiments, which crossed the $1 billion mark in sales for the first time in 2015, on 18.5 percent growth.

Dairy, the second biggest organic food category, accounted for $6.0 billion in sales, an increase of over 10 percent. Dairy accounts for 15 percent of total organic food sales.

The growth in the organic market, however, did not come without continued challenges to the supply chain. Dairy and grains were two areas where growth could have been even more robust in 2015 if greater supply had been available. There is an industry-wide understanding of the need to build a secure supply chain that can support demand. This goes hand-in-hand with securing more organic acreage, developing programs to help farmers transition to organic, and encouraging new farmers to farm organically.



Assessment from FAO/WHO Confirms Safety of Glyphosate, Contradicts IARC

A Joint Meeting of the Food and Agricultural Organization (FAO) Panel of Experts on Pesticide Residues in Food and the Environment and the World Health Organization (WHO) Core Assessment Group of Pesticide Residues (JMPR) has recently released an assessment finding that the crop protection compounds glyphosate, diazinon and malathion were “unlikely to pose a carcinogenic risk to humans from exposure through diet.”[1] JMPR’s conclusion contradicts a 2015 report from the International Agency for Research on Cancer (IARC), whose parent body is WHO, which classified the three compounds as “probably carcinogenic.”

CropLife America (CLA), the association representing the crop protection industry in the United States, welcomes JMPR’s science- and risk-based assessment. JMPR’s assessment confirms prior conclusions of regulators around the world including in the European Union, U.S., Canada and Japan. In November of 2015, a comprehensive review by the European Food Safety Authority (EFSA) concluded that glyphosate is “unlikely to pose a carcinogenic hazard to humans.”[2]

“Once again, an impartial peer review has found that IARC’s classification of glyphosate, diazinon and malathion was, at best, questionable. And frankly, CLA views IARC’s findings as an unnecessary threat to farmers and the global supply of food,” stated Jay Vroom, president and CEO of CLA. “In the U.S., we are eagerly awaiting the U.S. Environmental Protection Agency’s (EPA) new risk assessment for glyphosate. We urge EPA to consider the real risk of products and to use broad data sets, rather than responding to outside political pressure from activist groups.”

Notably, IARC is not a regulatory body and it used a very narrow set of data to assess potential for hazard only. JMPR and regulatory organizations, such as EPA, assess the actual risk of exposure (related to use) of products or ingredients at appropriate use levels and human health risk. Over the years IARC has generated hazard identification classifications on many everyday products and their flawed process has led the organization to label many regular consumer good items as possible carcinogens, such as coffee, or pickled vegetables. IARC also identified bacon and other processed meat as carcinogenic. An IARC expert panel is meeting this week to evaluate and update the monograph on coffee.

“Cancer is a serious health concern, and all health officials must be careful to give people correct dietary advice to live long, fulfilling lives,” stated Dr. Janet E. Collins, senior vice president of science and regulatory affairs at CLA. “IARC’s many findings, and poor communication of the organization’s role, have caused widespread confusion and are detrimental to encouraging people to eat a variety of nutritious foods. It is of the utmost importance that IARC change the way it communicates its hazard assessments. We want all consumers to know that they can feel confident in the food they eat, grown by U.S. farmers.”

All crop protection products must undergo extensive health and safety assessments by regulators before they are approved for use. CLA members actively support science-based regulation, and CLA believes that the thorough risk assessment method used by most pesticide regulators is a more logical and scientific approach for product evaluation as compared to the limited studies and hazard-only evaluation process followed by IARC.

[1] Joint FAO/WHO Meeting on Pesticide Residues. Geneva, 9–13 May 2016, Summary Report. Issued May 16, 2016. http://www.who.int/foodsafety/jmprsummary2016.pdf?ua=1.
[2] Glyphosate: EFSA updates toxicological profile. November 12, 2015. http://www.efsa.europa.eu/en/press/news/151112.



Focus on ethanol’s “Power, Passion and Peformance” during ACE Conference August 8-10

Ethanol’s high octane future, the retail outlook for E15 and flex fuels, and expanding export opportunities are just some of the subjects that will be covered during the annual American Coalition for Ethanol (ACE) Conference at the Loews Minneapolis Hotel located in downtown Minneapolis, Minnesota August 8 -10.

“The theme for the 2016 event is ‘Power, Passion and Performance’ and conference topics will highlight how the people of the ethanol industry are working to capitalize on the economic and public policy benefits of high-octane, low carbon ethanol,” said ACE Executive Vice President Brian Jennings.

While ACE is firming up speakers and topics, many conference portions are already confirmed, including an energy market keynote by Tom Kloza form the Oil Price Information Service (OPIS), a ‘Progress at the Pump’ panel featuring retailers discussing the outlook for E15 and flex fuel sales, a panel examining the blending economics and regulatory path for higher octane fuel, and a presentation on export markets for ethanol and DDGs.



Goule Selected as New NAWG CEO

The National Association of Wheat Growers (NAWG) announced today the selection of Chandler Goule as its new Chief Executive Officer. Goule, currently Senior Vice President of Programs at the National Farmers Union (NFU), comes to NAWG with eleven years of agriculture policy experience on the House side of Capitol Hill and will assume the role of Chief Executive Officer beginning July 5. NAWG has been conducting a nation-wide search for a new Chief Executive Officer to fill the vacancy left by Jim Palmer, who announced in April his intention to step down to spend more time with family and on his Missouri farm.

“NAWG is very pleased to have Chandler on board,” said NAWG President Gordon Stoner, a wheat grower from Outlook, Montana. “With our industry at a critical juncture, we know that with Chandler’s guidance, NAWG will be in a great position to advocate on behalf of all wheat farmers. We are delighted to have such a talented and experienced person lead our D.C. staff.”

In addition to his NAWG CEO responsibilities, Goule will also serve as the executive director of the National Wheat Foundation (NWF).

“Wheat has many challenges ahead, and we know Chandler is up to meeting them all head-on,” said NWF Chairman Phil McLain, a North Carolina wheat grower.

Originally from Texas, Goule holds degrees from Texas A&M and George Washington University, and served as a Subcommittee Staff Director for the House Agriculture Committee before moving to the National Farmers Union in 2009 as Vice President of Government Relations. He was appointed Senior Vice President of NFU Programs in 2014.

“The U.S. wheat industry is poised to reach new heights in both production and quality,” stated NAWG CEO-designate Goule.  “I am thrilled and honored to have this opportunity to work alongside our national wheat grower leaders in positioning NAWG and NWF as pre-eminent wheat advocacy and educational organizations as we begin to develop strategy for making wheat a major player in the drafting of the next farm bill.”

Stoner believes that with the experience Goule gained in his legislative work in Congressional offices, as well as his leadership experience on the House Ag Committee and at the NFU, and his work on three previous Farm Bills, Goule will provide beneficial policy and legislative guidance to NAWG as it develops priorities for the next farm bill.

 “Chandler Goule is the right person, in the right place, at the right time for the wheat industry,” added Stoner. “NAWG is excited to begin writing the next chapter in advancing the wheat industry.”




Monsanto Views Bayer’s Current Proposal as Incomplete and Financially Inadequate

Monsanto Company (NYSE: MON) today announced that its Board of Directors unanimously views the Bayer AG proposal as incomplete and financially inadequate, but is open to continued and constructive conversations to assess whether a transaction in the best interest of Monsanto shareowners can be achieved.

“We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business,” said Hugh Grant, Monsanto Chairman and CEO. “However, the current proposal significantly undervalues our company and also does not adequately address or provide reassurance for some of the potential financing and regulatory execution risks related to the acquisition.”

There is no assurance that any transaction will be entered into or consummated, or on what terms. The Monsanto Board of Directors has not set a timeline for further discussions and Monsanto does not intend to make further comment at this time.



USDA: Bulk of Ukraine Soy GMO

Much of Ukraine's corn and soybean harvest is grown from genetically modified seed despite a government ban on such crops, according to the United States Department of Agriculture.

"Although the planting of genetically modified crops is officially prohibited, estimates from private commodity analysts suggest that about 80% of Ukraine's soybeans (and roughly 10% of the corn) are genetically modified," the USDA said in a report published Tuesday.

Ukraine's Ministry of Agrarian Policy and Food declined to comment.

The widespread cultivation of GMO crops in Ukraine contrasts with the situation in neighboring countries, where public opposition to GMO has stymied the spread of the technology. In the European Union, farmers are only permitted to grow a single strain of corn developed by Monsanto Co., and its cultivation is largely confined to Spain. Similar restrictions are strictly enforced in Russia.

According to BMI Research, the de facto acceptance of GMO despite the lack of formal approval for cultivation of GMO crops makes Ukraine the best growth opportunity in Europe for companies selling genetically-modified seeds.

"Ukraine's citizens are less politically active regarding GM cultivation, and the country's plan to substantially increase its corn output over the coming years bodes well for such input growth," BMI wrote in a report Tuesday.

The biotech advance in Ukraine was aided by the signing of an International Monetary Fund bailout loan extended to Ukraine in 2014 that required Ukraine to encourage the use of biotechnology in agriculture, BMI said.

Companies that sell GMO seeds include Syngenta AG and Monsanto Co.

The USDA expects Ukraine to harvest 5 million metric tons of soybeans and 26 million tons of corn in 2016-17, up from 3.9 million tons and 23.3 million tons respectively in 2015-16. It is an important exporter of both crops, selling over half of its soybeans and around two-thirds of its corn abroad in 2015-16.

The spread of GMO crops in a key producer may test the GMO restrictions of countries that buy from Ukraine. One such case saw India agree to buy around 250,000 tons of Ukrainian corn in February in a rare import deal prompted by India's severe drought. India has a ban on GMO cultivation and controls its imports to make sure its domestic plants aren't contaminated.

"It's very difficult to guarantee non-GM out of Ukraine," said Swithun Still, director of Lausanne, Switzerland-based grain trading firm Solaris Commodities SA.

"Certain producers who work with one or two port silos might be able to say, hand on heart, 'we have the ID preservation from our fields that proves it's non-GM,'" he said. ID preservation is a system of tracking a shipment of a commodity so that its provenance is known along the supply chain.