Tuesday November 15 Ag News

Trade Delegation Helps Bolster Ag Exports from Nebraska to China

Today, Governor Pete Ricketts announced that his trade mission to China, Hong Kong, and Macau led to the signing of nine agreements to bolster markets for Nebraska beef and pork.  The trade delegation included state officials from the Nebraska Department of Agriculture (NDA), Nebraska Department of Economic Development, farmers and ranchers, and representatives from the University of Nebraska and Nebraska businesses.

“With China’s growing middle class, there are many opportunities here for Nebraska farmers and ranchers to grow markets for our high-quality commodities and food products,” said Governor Ricketts.  “Signing letters of intent with representatives from nine successful businesses and restaurants in China, Hong Kong, and Macau keeps Nebraska growing and helps the state’s farm and ranch families for many years to come.”

This trade mission followed a recent announcement by Chinese officials about their plans to reopen the beef trade between China and the United States.  China had previously banned importation of American beef in 2003.  Hong Kong has purchased and promoted Nebraska beef and continues to expand their markets.  In 2015, Hong Kong was Nebraska’s sixth largest export market, accounting for $234 million in goods purchased from our state with approximately 80 percent being exported food products.

“To prepare for China’s first purchases of U.S. beef in more than a decade, Nebraska officials are working closely with the U.S. Trade Representative’s office,” said NDA Director Greg Ibach.  “We want to be ready and able to take advantage of the opportunity when it happens.”

Highlights of the delegations’ agriculture-related activities during the trip include:

Shanghai: The delegation met with the owner of Yue 6 Cuisine & Lounge, a progressive, fusion-style restaurant serving U.S./Nebraska pork to sign a letter of intent to purchase more U.S. and Nebraska pork.

Macau: The delegation attended the annual Nebraska BBQ at the Studio City Hotel in Macau where 350 food industry representatives were there to see firsthand the advantages of using beef and pork from Nebraska.  Angliss Macau Food Service Limited signed a letter of intent to purchase Nebraska beef and pork.

Hong Kong: In Hong Kong, several letters of intent were signed.  Companies included Kateford International Limited, Sutherland Company Limited, Viva Asia, Saison Food Service Limited, Wilson International Frozen Foods Ltd, and the International Culinary Institute of Vocational Training Council.

On the last day of the trade mission, delegates enjoyed lunch at the Nebraska Steakhouse in Hong Kong where officials signed a letter of intent to purchase and promote additional Nebraska beef.



 Smith Speaks at Briefing on Agriculture Research

Congressman Adrian Smith (R-NE) presented at a briefing today featuring Dr. Chavonda Jacobs-Young, Administrator of the U.S. Department of Agriculture’s Agricultural Research Service (ARS), to discuss the research being conducted by the agency and how it impacts the future of agriculture.  After the briefing, Smith released the following statement.   

“By 2050, the world’s population is projected to reach ten billion people,” Smith said.  “ARS’s research is crucial to finding ways to feed the world with finite resources.

“The Third District is home to ARS’ Meat Animal Research Center (MARC), a world-renowned research leader in animal science having a meaningful and practical impact on the industry.  For example, research conducted at MARC has improved food safety by strengthening our understanding of E. coli, enhanced animal health and welfare through research on respiratory diseases in cattle and sheep, and boosted production efficiency through efforts to increase the survival rate of newborn piglets.

“On more than one occasion, I have had the opportunity to tour MARC and always come away inspired by the dedication of the ARS scientists and employees.  In Congress, I will continue to promote the work conducted by MARC and ARS as vital to agriculture’s success.”

Smith is the founder and co-chairman of the Modern Agriculture Caucus.



NO-TILL AND COVER CROP EVENT PLANNED IN ORD, NEB.

Nebraska producers have opportunity to learn from recognized soil health expert Gabe Brown at Dec. 5 event.

North Dakota farmer Gabe Brown will be the featured speaker at the Dec. 5 cover crop and no-till conference in Ord, Neb. Brown will describe his use of no-till farming, cover crops and grazing on his 5,000-acre farm and ranch operation.

The conference will run from 9:30 a.m. to 3 p.m., and has a 500-seat limit. A $10 registration fee can be paid at the door. To ensure an accurate lunch count, organizers ask attendees to register by Nov. 21 by visiting www.loupbasinrcd.org/, calling (308) 346-3393, or by sending an email to info@LoupBasinRCD.org.

Brown has been practicing no-till farming since 1993. He has improved his soil conditions to where he doesn’t apply any synthetic fertilizers, fungicides or insecticides on his operation, and herbicides have been reduced by over 75%. He has traveled across the U.S. sharing his success story encouraging other farmers and ranchers to apply soil health practices to improve their operations.

Conference topics are no-till management tips, proper cover crop management and utilization, how to establish and maintain soil health, and no-till practices for soil erosion and moisture conservation. The afternoon program also will feature a Nebraska producer panel that includes Matt Niewohner of Albion, Pat Peterson of Gordon, Del Ficke of Pleasant Dale, Dan Dickau of Elwood, Luke Kovarik of Ord, and Steve Grudzinski of Loup City.

Mark Sintek, conservation program manager at the USDA Natural Resources Conservation Service in Ord helped organize this event in hopes Nebraska farmers and ranchers can pick up valuable tools from Brown to use on their operations.

Sintek said, “We are very excited to have Gabe share his expertise with Nebraska farmers. He is a well-respected voice in teaching others about how to implement no-till and other soil health practices. It’s always a benefit for farmers and ranchers to hear from another farmer who has been successful in using no-till and cover crops to improve soil health.”

For more information, visit www.ne.nrcs.usda.gov and click on “Events and Deadlines.”



Consolidated Sourcing Solutions Hires New President

Consolidated Sourcing Solutions, LLC (CSS) has hired Steve Namanny as the company’s President.  Mr. Namanny comes to CSS with vast working knowledge and experience in the fertilizer industry. He will assist CSS partners in sourcing the global fertilizer information and products used by thousands of cooperative member-growers in the Midwest and Upper Great Plains.

“Steve is a natural fit in this new role as President of CSS,” Steve Briggs, Chairman of the Board of Directors for CSS, says. “We are confident he will continue to elevate CSS performance and grow the relationships with our fertilizer suppliers. His leadership skills are critical as we navigate the changing times in the retail fertilizer landscape.”

Mr. Namanny will work out of the CSS corporate office in Sioux City, Iowa.

Consolidated Sourcing Solutions is an LLC, formed in 2010 between the cooperative partners of Landus, Ames, IA; Central Valley Ag Coop, York, NE; and South Dakota Wheat Growers, Aberdeen, SD.  Consolidated Sourcing Solutions assists these cooperatives in their global intelligence with regard to fertilizer supply and provides sourcing of product information.



CF to start up Port Neal urea, ammonia plants in late 2016

US-based fertilizer producer CF Industries is in the process of starting up its new Port Neal plant and expects the urea and ammonia units to start production in late 2016, the company said in a recent press release.

The producer said gas has been introduced into its new ammonia plant at Port Neal in Iowa, and production is expected to begin shortly.

The urea plant was commissioned in parallel with the ammonia plant and its granulation unit effectively tested in September 2016, said the company.

The Port Neal plant has the capacity to produce 900,000 tonnes/year of ammonia and 1.4m tonnes/year of urea.

The producer’s other major expansion has been at Donaldsonville, where urea production started up in November 2015 and urea ammonium nitrate solution (UAN) in March 2016. The ammonia plant went on stream in September 2016.

In Donaldsonville, the 1.4m-tonne/year plant is producing at 110-115% of nameplate capacity and the 1.8m-tonne/year UAN plant at 120% capacity. The 1.3m-tonne/year ammonia plant is operating at nameplate capacity with additional rate increases expected in coming weeks, the company said.

The total cost of the capacity expansion projects, at Donaldsonville and Port Neal, is estimated at around $5.2bn.

The Port Neal urea and ammonia plants are the final two plants of the company’s capacity expansion plans.



Iowa Commodity Challenge Helps Improve Crop Marketing Skills

The real world of crop markets is reflected in the website Iowa Commodity Challenge, developed by Iowa State University Extension and Outreach and the Iowa Farm Bureau. Website users can explore how various tools work – without putting their actual money on the table.

The site, hosted on the Ag Decision Maker website, contains 14 instructional videos explaining various aspects of marketing. Three new videos – Successful Market Planning, Using Crop Contracts and Working with Your Grain Merchandiser – have been recently added.

Also included is an updated 65-page Marketing Tools Workbook and a variety of learning activities. The workbook provides the basics on marketing tools as well as setting personal marketing goals and resources participants can use on their own farm operation.

Online commodities simulation game
Participants can choose to join in an online grain market simulation game to help improve marketing skills. The game includes using futures and ag options as marketing tools, and participation can also help users improve strategies to sell cash corn and soybeans.

“It gives players a chance to look at commodity markets and how they work over the course of several months,” said Steve Johnson, farm management specialist with ISU Extension and Outreach. “This game reflects what is going on in the real world markets so participants are able to try out some marketing strategies in a setting where they can explore how these various marketing tools work.”

As a part of the online grain market simulation game, participants are given 75,000 bushels of corn and 25,000 bushels of soybeans stored commercially to market before spring using March 2017 corn and soybean futures. Storage costs will accrue on bushels as if they were in the bin (six cents per bushel per month).



USDA Awards Funds for Fiscal Year 2017 Market Development Programs

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture's (USDA) Foreign Agricultural Service (FAS) is awarding $200 million to more than 70 U.S. agricultural organizations to help expand export markets for U.S. farm and food products through the Market Access Program (MAP) and the Foreign Market Development (FMD) Program.

"USDA and the U.S. agricultural industry work together in a unique public-private partnership to open and grow markets around the world for high-quality, American-made farm and food products," Vilsack said. "The federal investment in these programs is multiplied by industry matching funds, not only boosting agricultural export revenue and volume, but also supporting farm income and enhancing the overall U.S. economy."

Under MAP, FAS will provide $173.5 million in fiscal year 2017 funding to 70 nonprofit organizations and cooperatives. The organizations use the funds to help U.S. agricultural producers promote their products to consumers around the globe through activities such as market research, technical assistance, and support for participation in trade fairs and exhibits. MAP participants contribute an average 137 percent match for generic marketing and promotion activities and a dollar-for-dollar match for promotion of branded products by small businesses and cooperatives.

Under FMD, FAS will allocate $26.6 million in fiscal year 2017 funds to 26 trade organizations that represent U.S. agricultural producers. FMD focuses on generic promotion of U.S. commodities, rather than consumer-oriented promotion of branded products, and preference is given to organizations that represent an entire industry or are nationwide in membership and scope. The organizations, which contribute an average 130 percent cost share, conduct activities that help maintain or increase demand for U.S. agricultural commodities overseas.

A new study conducted by noted land grant university economists shows that MAP and FMD contributed $309 billion to farm export revenue between 1977 and 2014, an average of $8.2 billion per year. From 2002 through 2014, the programs boosted average annual farm cash income by $2.1 billion, annual U.S. economic output by $39.3 billion, annual gross domestic product (GDP) by $16.9 billion, and annual labor income by $9.8 billion. In addition, the programs generated economic activity that directly created 239,000 new jobs, including 90,000 farm sector jobs. To learn more about the Economic Impact of USDA Export Market Development Program study, visit www.fas.usda.gov/sites/default/files/2016-10/2016econimpactsstudy.pdf.



Beef Industry’s Best, Brightest to Share Insights at Cattlemen’s College in Nashville Jan. 31 – Feb. 1

Leading authorities in the cattle industry will be sharing their experience and knowledge in Nashville, Tenn., Jan. 31 – Feb. 1, 2017, offering cattlemen and women practical information that can be turned into profit-building ideas at the 24th annual Cattlemen’s College. The event, which kicks off the 2017 Cattle Industry Convention and NCBA Trade Show, is sponsored by Zoetis and coordinated by the National Cattlemen’s Beef Association.

                Cattlemen’s College has become the cattle industry’s number one resource for education and advice for improving operations and profits. Its stimulating and thought-provoking sessions help generate higher returns for cattle operations, as well as spark discussions that lead to innovation and advancement in a rapidly changing industry.

                 Keynote speaker at the Cattlemen’s College Opening General Session will be Cameron Bruett, head of corporate affairs at JBS USA. Bruett will address expectations of transparency in today’s beef industry among consumers and customers, and the related farm and ranch management practices that have resulted – and will need to take place – in today’s highly competitive protein marketplace.

                 College attendees may choose from five curriculum tracks during the college: Here’s the Beef, Managing Grazing for Soil Health & Animal Performance, Production Efficiency and Profit, Healthy Business Strategies and Breeding Cattle with Staying Power. Videos of all of the classes will be made available to all attendees a few weeks after the college.

                Session speakers at the college include some of the leading experts in the fields of soil health, calf management, heifer development, family ranching, genetics, beef taste, sustainability, alternative income sources, managing forages, cattle feeding, cow efficiency, and more. The college begins with concurrent sessions on genetics and a reception Tuesday afternoon, Jan. 31, with a full morning of programs and a lunch on Wednesday, Feb. 1.

“Cattlemen’s College gives every participant an opportunity to learn something new that can improve their farm or ranch,” according to Josh White, executive director of producer education for the National Cattlemen’s Beef Association. “These sessions are a way for attendees to gain the edge they need to keep up in the beef industry’s ever-changing landscape.”

                Cattlemen’s College was attended by more than a thousand producers in San Diego last year, and early registration for this year’s sessions in Nashville is encouraged. Early registration ends Jan. 4, 2017. Tickets to the 2017 event are $250 per person, with discounted tickets available for college students. For more information on the event’s classes and sessions, go to www.beefusa.org/cattlemenscollege.



NCGA Congratulates Bowling on USFRA Leadership
   
National Corn Growers Association Chairman Chip Bowling, a farmer from Maryland, was elected to serve as vice chairman of the U.S. Farmers and Ranchers Alliance during the group's board meeting in Kansas City last week. NCGA congratulates Bowling on this accomplishment and looks forward to seeing the impact of the experience and enthusiasm he brings to the role.

"I have always felt strongly about the importance of the work done by USFRA, and I am humbled my fellow ag leaders entrusted me with this position," said Bowling. "Farmers and ranchers work hard every day to become increasingly sustainable and continue improving. Through USFRA, we all can play an active part in sharing that story."

USFRA was founded in 2010 to unite agriculture and earn consumer trust in today's farming and ranching practices. In addition to Bowling, South Dakota crop and livestock farmer Brad Greenway, who represents the National Pork Board, will serve as the new chairman, American Farm Bureau Federation representative Scott VanderWal will serve as treasurer and Illinois Soybean Association
Roberta Simpson-Dolbeare will serve as secretary. Immediate Past Chairwoman Nancy Kavazanjian, will continue representing United Soybean Board on the Executive Committee.

USFRA consists of about 100 farmer- and rancher- led organizations and agricultural partners representing virtually all aspects of agriculture, working to engage in dialogue with consumers who have questions about how food is grown and raised. USFRA is committed to continuous improvement and supporting U.S. farmers and ranchers' efforts to increase confidence and trust in today's agriculture. To learn more, see www.fooddialogues.com. 



 NFU Backs ‘American Food for American Schools’ Legislation

Recognizing the need to improve sourcing of American-grown food products by U.S. schools, National Farmers Union (NFU) applauded the introduction of the “American Food for American Schools Act of 2016.” The legislation aims to enforce provisions of the Richard B. Russell National School Lunch Act that require school nutrition providers to purchase domestically produced and processed foods, to the extent practicable.

“The school lunch laws were designed to ensure all school-age children have access to high quality, nutritious food products, like those grown and produced by U.S. farmers and ranchers. By improving transparency and enforcement of the Buy American provisions, through the American Food for American Schools Act, we can better support both American agriculture and child nutrition,” said NFU Senior Vice President of Public Policy and Communications Rob Larew.

The legislation, introduced by Representative John Garamendi (D-Calif.), would require school nutrition providers to request a waiver from the U.S. Department of Agriculture (USDA) should they decide to purchase a foreign food product, differing from the current law which does not require a waiver be requested.

“When school food providers are using U.S. taxpayer money to purchase food, they should be buying American grown foods where possible,” noted Larew.

The bill also directs that notification of the waiver be posted publically on the school’s website and menu as well as sent to parents of the children who will be served the product. Earlier this year. Rep. Garamendi notified USDA of his concern that the Buy American provisions were not being enforced in California schools.

“Providing USDA with greater authority to enforce farm-to-school lunch programs will help connect more students with fresh, local foods. These programs can also improve understanding of where our food comes from by strengthening local farmer relationships within the community. I urge Congress to support this legislation that will benefit agriculture, education and communities, alike,” Larew concluded.



Speaking up for Beef: Joint Effort Extends Knowledge of Beef through State Councils

Nutrition professionals who provide advice to consumers are always on the lookout for credible and useful information about food. Thanks to a national beef checkoff-funded program being implemented by state beef councils, they’re finding welcome information about beef.

The objective of the program is to place credentialed nutrition speakers on the programs at state health and nutrition organization events. The speakers, who sometimes are researchers who have worked closely with the beef industry, can present on a wide range of topics, which can be tailored to the needs of each state organization.

The benefits of the program are numerous. First, placing these experts in the local markets delivers important and timely beef and nutrition information to health professionals who need it. It also helps state beef councils develop and strengthen their relationships with both the groups and the individual professionals who attend their events. This helps secure the council’s reputation as the “go-to source” for all things beef within that state.

The program is also a collaborative education tool that allows state beef councils and the national Beef Checkoff Program to work together efficiently to improve the health community’s knowledge of beef.

Because the program is funded through the national Beef Checkoff Program, state beef councils have a huge motivation to use it. “It’s an opportunity to have expert speakers reach a critical audience for beef without having to dip into their own budgets,” according to Erin Weber, RDN, manager of health communications outreach for the National Cattlemen’s Beef Association, which manages the program under contract to the Beef Checkoff Program.

For the beef checkoff’s 2016 fiscal year (ended Sept. 30), 35 state beef councils had taken advantage of the program, says Weber. So far in fiscal year 2017, about a dozen have committed to participating in the program, with more expected to confirm their involvement before the end of the calendar year.

Among audiences that have been reached through the program are dietitians, physicians, nurses, physical fitness professionals and others in the health field. “These authorities either grant permission to eat beef, or they take it away,” according to Traci Bracco, executive director of the Idaho Beef Council (IBC). “It’s a critical audience for our message.” Students in these fields have also been reached.

Bracco and other state beef council managers and executives think the program is among the most effective and efficient examples of the state/national beef checkoff partnership.

“It works beautifully,” according to Holly Swee, director of nutrition and consumer information for the South Dakota Beef Industry Council (SDBIC). “We value having it as a resource and a tool for reaching our health audiences.”

Swee appreciates the fact that program speakers are approved and selected by the national beef team to make sure they are appropriate and accurate spokespeople for beef. Bracco agrees, and says it’s important that speakers have been selected for their experience, knowledge, speaking ability and appropriateness to the message. “These are vetted speakers, so we know we’re not taking a gamble on the message they will deliver,” she says.
 
Flexible and Strategic
Health organizations appreciate the fact that they have the chance to select nationally-recognized speakers, with topics that make the most sense for their events. These groups sometimes have limited resources and reach, and don’t always have access to the highest quality speakers.

“Many times these groups have a hard time coming up with dynamic, credible, national presenters,” Swee says. “They’re searching for well-rounded speakers, and appreciate this resource. It allows us to get information out about beef and build relationships with these groups at the same time.”

“We couldn’t find this many high caliber presenters within Idaho – especially when there are so many different topics,” says Bracco. “Our efforts go much further, and our message carries more weight, when we can provide these national speakers.”

According to Donette Spann, promotion coordinator for the Arkansas Beef Council (ABC), the program offers tremendous value for their state. “Arkansas is not a huge state in terms of budget,” she says. “Because the Nutrition Seminar Program is funded nationally, we can still have a well-coordinated and professional program.

Another state with a limited budget is South Carolina, which significantly stretches that budget with the national program, according to Roy Copelan, executive director of the South Carolina Beef Council (SCBC). “I would rate this checkoff-funded program an A+,” he says. “It’s a great avenue to tell the beef story, and has matched very well for us.”

This coming March, at the South Carolina Academy of Nutrition and Dietetics Conference, the SCBC will participate in the Nutrition Seminar program for the third time. Copelan says his organization has seen increasing attendance and interest each of the years a program-sponsored speaker has presented. Furthermore, he has gotten positive reviews on the presentations from participants of subsequent health-oriented events at which SCBC exhibits, including the family physicians, hospital and health associations.

“We’re getting great mileage out of this program,” he says.

“Our board absolutely loves it,” says ABC’s Spann. “It makes good sense economically, as we don’t have to reinvent the wheel. Plus, we’re able to bring in nationally known speakers who can give topics a fresh perspective.”

Swee, who says South Dakota has utilized the program for at least 10 years, believes beef producers are getting tremendous value through it for their beef checkoff dollar. “This is definitely a big bang for the buck,” she says. “We’re going directly to the source. And we’re being very transparent with this audience, able to get current and reliable research information directly into the hands of people who can use it.”

Many of the speakers have done research that involved beef, and have “walked the walk,” says Idaho’s Bracco. “These speakers believe in beef protein, so it’s a win/win for both the group and the industry,” she says. As representatives of the beef industry, “you never have to worry about the Nutrition Seminar program.”

While the information is important, the presentation is also critical, says Mitch Rippe, director of nutrition and education at the Nebraska Beef Council (NBC). “It’s pretty cool that we’re bringing in researchers, but what’s really great is that these individuals are also some very engaging speakers,” he says. “We’ve never had a bad one.”

In addition to programs in Nebraska, Rippe has worked with beef councils in surrounding states, including Kansas, Missouri and Oklahoma, to utilize the Nutrition Seminar program to gather and provide presentations to top influencers from their states. In this way, the councils can share some influencer costs regionally, utilizing the national program to tap into the expertise found within the speakers bureau.

Since the program is funded nationally, states like Arkansas can get involved in the health organization events as much as their budget and interest allows, says Spann. She says the program provides an important piece of the ABC’s involvement with the health community. The state council also pays for a lunch, a reception and a booth at the annual Arkansas Academy of Nutrition and Dietetics conference, so the speakers “are just the icing on the cake,” she says.
 
The Topics
Weber says speakers are capable of presenting on a wide number of current topics. Protein is key, of course, and beef as a first food has also become popular with recent research of interest to the health community. This year, feeding the family will also be a prime topic, as the beef checkoff promotes its Families in Motion campaign.

ABC’s Spann says a popular presentation in their state recently focused on the changing needs of a woman’s diet throughout her lifetime and beef’s role in making a significant difference in overall health and energy. This was presented by Kim Schwabenbauer, MS, RD, LDN, who has more than 14 years of experience as a registered dietitian. Schwabenbauer is a triathlon coach, a professional triathlete, a certified specialist in sports nutrition and a nationally-recognized speaker to companies and conferences on sports nutrition related topics.

Spann says presentations can sometimes focus significantly on beef – but not always. She notes, however, that beef messages are always incorporated into the presentations. Occasionally, she says, ABC will work with other ag groups, such as dairy, to combine common messages, such as sustainability, the environment or family farming.
 
Thousands Reached
In South Dakota, Swee says the overall reach over the course of the program in the state has “easily been in the thousands,” with individual audiences in the 100-200 range. Those in the audiences are typically very receptive to the messages, and use them in their consumer outreach. “It’s a personal investment by these health influencers in acquiring information,” she says. “They ask good questions, and are sincere about wanting to learn more about the topics.”

Rippe estimates NBC has been able to reach about half of the key nutrition influencers in Nebraska through the program, and says the quality and credibility of the speakers has helped his organization expand its outreach to audiences they may not have been able to reach. “This program really gives states the ability to reach a variety of key influencers at the state level,” he says.

IBC’s Bracco says the program allows her board to budget for not only expected health organization events, but for two “opportunistic” events every year. “This allows us to do our jobs better,” she says. “It’s really a great program.”

“We’re reaching major influencers – the decision-makers in their organizations,” says Spann in Arkansas. “Our beef checkoff focuses on reaching the right audiences at the right time with the right message, and no checkoff-funded program better succeeds at that than this one.”



Rabobank Analysts Discuss Impact of Trump Election on Food & Ag Sector

The election of Republican candidate Donald Trump as the 45th President of the United States has the food and agriculture sector awaiting clarification on his policies and positions. The Rabobank Food & Agribusiness Research and Advisory (FAR) group has authored a report on the possible implications of the election.

“Republican-controlled Executive and Legislative branches could mean swift action when the new administration takes office,” notes Pablo Sherwell, Rabobank head of Food & Agribusiness Research and Advisory, North America.  “Our analysts and others around the world are keeping a close eye on trade, labor, the upcoming Farm Bill and regulations impacting production agriculture, as these areas are where potential policy changes could have longer-term implications on the industry as a whole.”

While President-elect Trump’s policies are yet to be clearly defined, his statements during the campaign suggest drastic changes from current policy could be on the horizon. Acknowledging that any change, and the subsequent impact, is uncertain, Rabobank analysts dissect key areas to watch, both short and long-term:

•            In the short term, agricultural markets may be affected by foreign exchange volatility, as well as changing business appetite and consumer confidence.

•            Looking towards the next year, it will be critical to watch potential revisions to trade agreements, labor policies and business regulations, as well as the effects these elements will have on economic growth.

Short-Term Implications
The lack of market information creates uncertainty, and uncertainty generates market volatility. We saw this first-hand last week, when an initial uncertainty over President-elect Trump’s policy direction resulted in a short-term sell-off reaction by markets.

“Currently, the export share of U.S. agricultural production represents more than 20 percent in volume and value terms, making U.S. price formation highly dependent on foreign trade and therefore foreign currency,” said Sherwell.

Longer-Term Implications
Trade agreements, agricultural policy and labor will act as key areas where potential policy changes could have longer-term implications on the industry as a whole.

Trade Agreements: As the number-one global agricultural exporter, the U.S. F&A sector is one of the main drivers of global agriculture and trade, reaching nearly $125 billion in 2016. Currently, the U.S. exports commodities that complement the rest of the world’s food supply—any change to U.S. agricultural trade agreements will not only affect global prices and trade dynamics but also U.S. farmer margins.

Farm Bill 2018: The current Farm Bill is scheduled to be renewed by 2018. Because the Republican Party holds the majority, the development, approval and implementation of the 2018 Farm Bill is likely to be a smoother process than that of the previous bill. Regulatory reductions have been a policy direction advocated by President-elect Trump during his candidacy, and it is likely that the direction will shift even more toward an environment of reduced regulation.

Labor: The U.S. food and agriculture industry is highly dependent on migrant labor, particularly in sectors such as produce, animal protein and food service operation. If immigration laws are enforced more strictly, business owners may face labor shortages, which would pressure their margins.