Thursday December 15 Ag News

Farm Credit Services of America to Distribute $160 Million Cash-Back Dividend for 2016

Farm Credit Services of America (FCSAmerica) approved a 2016 cash-back dividend of $160 million for eligible customer-owners of the financial cooperative. This brings the amount of FCSAmerica profits returned to farmers, ranchers and agri-businesses since to 2004 to $1.3 billion.

“In a challenging agricultural economy like today, it is more important than ever that farmers and ranchers have a lender they can depend on,” said Doug Stark, CEO and president of FCSAmerica. “The 2016 cash-back dividend is a testament to our cooperative’s financial strength and commitment to sharing a portion of our annual profits with our customer-owners.”

The 2016 Patronage Program marks the third consecutive year that the FCSAmerica Board of Directors has approved a cash-back dividend of $160 million.

The Board of Directors considers a number of business and economic factors in determining the amount of each year’s cash-back dividends, including the cooperative’s financial strength. The portion of earnings retained by FCSAmerica are used to build the cooperative’s financial capacity to continue serving agriculture.

The 2016 dividend checks will be mailed to eligible customer-owners in March 2017. Farmers and ranchers use their cash-back dividends from FCSAmerica to invest in their operations and families and to support their rural communities.



Precision Planting’s Winter Conference 2017: More Innovation, More Locations

Precision Planting is known for its annual Winter Conference in Tremont, a large event attracting thousands of progressive farmers from around the world. This year, the agriculture technology company is sharing ideas and farming practices in not only their central Illinois headquarters, but will also have 3 additional simulcast locations. The simulcast locations will include on-location sessions, and will be able to watch the keynote and other presentations live from Tremont.

Farmers can choose which day and which location to attend, with Winter Conference occurring in:
  - Tremont, IL (January 17, 18, 19, or 20)
  - Fargo, ND (January 18 or 19)
  - Lincoln, NE (January 18 or 19)
  - London, ON, Canada (January 18 only)

“We don’t want anyone to miss out. Because we have such a wide base of farmers who follow these events, we thought we should make the effort to come to them,” says Brad Arnold, Precision Planting General Manager.

Winter Conference is known for its valuable agronomic education, promoting an effort to fully understand the reasoning behind each practice and product the company recommends.

The 2017 conference will include topics such as: Smart Decisions with Tomorrow’s Planter, Nutrient Application Technology for Maximum Profitability, The Foundation for Higher Ear Count, and more. Attendees will also be able to hear a new speaker, Commercial Agronomist Jason Webster, as well as resident Research Agronomist Cory Muhlbauer.

Farmers who are interested in attending can register online at www.winterconference2017.com.



National FFA CEO Coming to Innovation Campus January 10th
Everyone is welcome to attend Mark Poeschl’s presentation for the UNL Heuermann Lecture series titled Leadership and Sustainability | Sustainability and Survivability: The Balancing Act to Feed the World. The presentation will take place on January 10th at 7:00 p.m. at Nebraska Innovation Campus Conference Center.

Poeschl was a FFA state president here in Nebraska in 1978-79. He graduated from the University of Nebraska- Lincoln and then moved to St. Louis to begin his career at Purina. Later he moved to Lewisburg, Ohio to work for an animal nutrition firm named Carl S. Akley, Inc. In 2007, he then became the CEO of North American Nutrition, and then in 2011 began working for Cargill Animal Nutrition. Poeschl is now the Chief Executive Officer of the National FFA Organization and the National FFA Foundation. He is in charge of the long-term success of both the FFA organizations. He also assists in overseeing the family farm operation in Nebraska.

As you can tell he has had a big impact on FFA and Nebraska. You can  click here to find out more information about his presentation... http://heuermannlectures.unl.edu/mark-poeschl.   Hope you can make it to Poeschl’s presentation on January 10th, but if not you can watch the presentation live if you  click here... http://heuermannlectures.unl.edu/. 



Livestock Prices Stabilizing after Rollercoaster Rise and Fall

The market for livestock has been a bit of a rollercoaster over the last few years. Strong prices during 2014 and early 2015 have given way to lower prices that are more in line with what producers saw from 2010-13.

beef cattle outdoors“Producers certainly have reinvested some of the profits of the last several years into their operations,” said Lee Schulz, livestock economist with Iowa State University Extension and Outreach. “The major downturn in prices has likely changed the payback period, but if these investments improved productivity and efficiency, thereby lowering costs, they will pay dividends. This is part of the reason that even in the ‘bad years’ some producers are making money.

“Even with the lower commodity prices there are some opportunities available. Placements of feeder cattle this fall are showing the opportunity to hedge profits and the same is true for summer hog marketing.”

While a major rebound in prices is not likely, the economic forecast does offer a bit more stability.

“The periods of big adjustments in prices are likely behind us,” Schulz said. “If this is the case, decision making should be better informed as confidence in making projections improved and the ability to decipher opportunity and risk has been enhanced. Perhaps the most obvious sign of stability is the fact that markets are exhibiting somewhat seasonal behavior. Markets returning to more typical behavior allows producers and analysts to better understand and anticipate market movements.”

In these times of small margins, knowing and understanding all the aspects of a farm business is critical to having success.

“This is the time to be looking very critically for any opportunity to find profitable margins; having a marketing strategy and price risk management plan in place is key,” Schulz said. “Profitability for any producer is contingent on favorable production, proper marketing and price risk management skills. Tightening margins are putting these necessary skills to the test.”

Understanding costs and break-even prices is absolutely critical.

“Go back to your records and budgets from previous years to understand what your costs are,” Schulz said. “Records give the information needed to make sound business decisions. One way to establish price risk management objectives is to start with the cost of production and the amount of risk the operation can withstand.”

ISU Extension and Outreach has resources available to better understand current financial conditions and what producers can do to manage their risks during periods of lower farm prices.
-    Farm Financial Associates are available to provide a no-cost look at a farm’s complete financial situation.
-    Ag Decision Maker is a decision-oriented agricultural business website with articles and other information written by ISU Extension and Outreach economists and farm management specialists.
-    The Beginning Farmer Center helps inform and support those who are getting started in farming. It also works with established farmers on succession planning for when they leave the industry.
-    The Center for Agricultural Law and Taxation provides information about the application of developments in agricultural law and taxation.



AFBF Appoints New National Committee Members

The American Farm Bureau Federation has appointed farmer and rancher members to the organization’s Promotion & Education and Young Farmers & Ranchers Committees.

“Farm Bureau volunteer leaders, such as those selected to serve on national committees, are the backbone of our organization,” said AFBF President Zippy Duvall. “As advocates for today’s agriculture, they play an important role in building a greater understanding between farmers and consumers.”

Duvall announced the appointment of the following members to the P&E Committee for two-year terms starting in 2017: Jennifer Bergin, Melstone, Montana (crops and beef cattle); Rosalie Geiger, Reedsville, Wisconsin (dairy cattle, beef cattle and crops); and Jamison McPherson, Nephi, Utah (crops and wildlife management). Renee McCauley, Lowell, Michigan (dairy cattle and crops); Hilary Maricle, Albion, Nebraska (beef cattle, hogs and crops); Val Wagner, Monango, North Dakota (crops and beef cattle); and Chris Hoffman, McAlisterville, Pennsylvania (hogs and poultry) were reappointed to two-year terms starting in 2017.

The P&E Committee is comprised of 10 individuals representing qualifying Farm Bureau Promotion & Education states. It was launched in 2014 to develop and centralize resources that inspire and equip Farm Bureau members to convey the significance of agriculture. Committee members support and encourage state Farm Bureau volunteers to participate in projects and activities by providing resources for programs, communicating with state leaders and contributing collaborative ideas.

Duvall announced the appointment of the following members to the YF&R Committee for the 2017-2019 term beginning in March: Matthew and Kimberly London, Cleveland, Georgia (dairy cattle, corn and hay); Mark and Sarah Mathe, Ida, Michigan (beef cattle and poultry); Craig and Kelly Vaughn, Cavalier, North Dakota (beef cattle and crops); Bradley Heimerl, Johnstown, Ohio (crops, swine and beef cattle); Jimmy and Lydia McAlister, Greeneville, Tennessee (beef cattle and crops); Grant Coffee, Kenbridge, Virginia (corn, wheat, soybeans and grain transport); Derek and Charisse Orth, Stitzer, Wisconsin (dairy cattle); Russell and Heather Kohler, Midway, Utah (dairy cattle and crops).

The YF&R Committee is comprised of 16 positions representing all regions of the U.S. An individual or couple may hold each committee appointment. Committee members are responsible for program planning, which includes the coordination of YF&R competitive events during AFBF’s Annual Convention each January and the Harvest for All program.



USSEC Holds Inaugural International Marketing Dialogue

USSEC held its first International Marketing Dialogue in St. Louis on December 5 and 6. Stakeholders of U.S. Soy, including USSEC members and grower leaders, attended the two-day event.

USSEC Chairman Jim Miller, farmer from Belden, NE, welcomed attendees, by saying, "When we first started talking about putting this event together, we all agreed that our goal was to create a forum where our members can provide input and feedback on strategy and focus."

The event aimed to do just that, as members heard from USSEC’s regional directors and various experts on the first day and attended a networking reception and dinner that evening. The second day was set up as an industry feedback forum with participants breaking into smaller teams focused on different utilization areas:market access; oil and human utilization; and animal and aquaculture feed utilization. The groups discussed what USSEC’s current activities, and industry and members provided USSEC with feedback and thoughts on the organization’s direction.

USSEC CEO Jim Sutter told the audience that U.S. soybeans are the country’s top agricultural export and stressed the importance of USSEC’s role of differentiating U.S. Soy and building market access.

United Soybean Board (USB) Chairman Jared Hagert spoke about the organization’s long range strategic plan (LRSP) and explained USB’s three target areas, meal, oil and sustainability, before moving into its action teams of supply, marketplace, and demand.

Foreign Agricultural Service (FAS) International Marketing Specialist Jarrod Jones gave details of the U.S. Department of Agriculture’s (USDA) strategic plan. USSEC receives funds from FAS through the American Soybean Association (ASA). USSEC’s Unified Export Strategy is USSEC’s application to FAS for FY18.

USSEC Chief Program Officer Ed Beaman spoke further on the topic of UES, explaining that UES is USSEC’s application for federal funds and described the organization’s strategic plans, which serve as a marketing plan for each target market/region.

Pro Exporter principal Marty Ruikka spoke on the topic of soy production and supply and demand and Tanner Ehmke, senior economist at CoBank talked about the macro and agricultural economic outlook.

That afternoon, participants heard an overview from each of the USSEC worldwide regions:North Asia, European Union (EU) / Middle East North Africa (MENA), Asia Subcontinent, Southeast Asia, and the Americas.

Stakeholders attended a reception and dinner that evening. Jim Wiesemeyer, senior vice president at Informa Economics, gave a presentation, “The New Administration and What This Means for U.S. Agriculture Trade.”

The conference reconvened the following morning with participants breaking into industry utilization groups.

In the market access group, key discussion items included biotech (regulatory and messaging); new breeding techniques; other regulatory challenges creating non-tariff barriers; and that tariff barriers are more limited.

Syngenta’s Ryan Findlay was elected chairman of the market utilization team. Lucas Blaustein of the Lansing Trade Group was elected vice chairman.

Mr. Findlay pointed out that biotech came up in every region for the market access group. The takeaway, he said, is “how can USSEC fill the gap and engage in different areas around the world?”

Bob Sinner of SB&B Foods was elected chairman of the oil and human utilization team with CHS’s Linda Barclay as vice chairman.

This group’s general discussion points included if biotech discussions should be a high priority in many countries; NGO pressure on Asian governments; developing qualified health claim for U.S. Soy in the Americas and Japan; further developing the sustainability message; taking a targeted regional approach to nutritional and scientific Communications; working on further compliance issues; the need for USSEC to focus on the whole U.S. Soy product portfolio; assisting exporters with vetting potential buyers; positioning U.S. Soy as a premier quality product and as a reliable supplier; the possible need to take a different marketing approach utilizing a high profile spokesperson; and reassuring trading partners that the west coast shipping slowdown was an anomaly.

The animal and aquaculture feed utilizations group elected Mark Luecke of South Dakota Innovation Partners, LLC as chairman and Bridget Owen from the Soy Aquaculture Alliance as vice chairman.

This team discussed how USSEC and its members have a greater partnership/alliance; the Cuba – aquaculture information exchange project and poultry/shell eggs; the need to continue to grow poultry and aquaculture production and soy inclusion rates and aquaculture species diversification in Asia Subcontinent; promoting higher trophic species in target countries; advanced soy proteins for feed usage – encourage production w U.S. Soy; telling stories to reach consumers; the possibility of working with the U.S. Agency for International Development (USAID) in Southeast Asia; differentiation and building preference; focusing on top importers of U.S. Soy by value and volume in North Asia; continuing to focus on value proposition – amino acids, digestibility, metabolizable energy, and processing technologies; providing assistance with registrations of products globally; and demonstrating sustainability and reliability through U.S. Soy’s extrinsic and intrinsic values.



United States Challenges Chinese Grain Tariff Rate Quotas for Rice, Wheat, and Corn

Today, the Obama Administration launched a new trade enforcement action against the People’s Republic of China at the World Trade Organization (WTO) concerning China’s administration of tariff-rate quotas (TRQs) for rice, wheat, and corn.  The complaint filed by the Office of the United States Trade Representative (USTR) charges that China’s administration of its TRQs for these commodities breaches China’s WTO commitments and undermines American farm exports.  The United States is launching this trade enforcement challenge to hold China to its trade commitments and help level the playing field for American rice, wheat, and corn farmers.  Today’s announcement marks the 15th trade enforcement challenge the Obama Administration has launched against China at the WTO.

“Today’s new challenge – as well as the steps we are taking to advance our case against China’s excessive government support for rice, wheat, and corn – demonstrates again the Obama Administration’s strong and continued commitment to enforcing the rules of global trade, and protecting the interests and livelihoods of American farmers,” said United States Trade Representative Michael Froman. “China’s TRQ policies breach their WTO commitments and limit opportunities for U.S. farmers to export competitively priced, high-quality grains to customers in China. The United States will aggressively pursue this challenge on behalf of American rice, wheat, and corn farmers.”

The United States Department of Agriculture (USDA) estimates that China’s TRQs for these commodities were worth over $7 billion in 2015. If the TRQs had been fully used, China would have imported as much as $3.5 billion worth of additional crops last year alone.

“Real access under tariff-rate quotas is vital to global trade and to providing our farmers and ranchers the opportunity to export high-quality, American-grown products to the world,” said Agriculture Secretary Tom Vilsack. “Although China has become a significant market for our grain exports, we could be doing much better than we are today. When China joined the WTO, it committed to implementing an agriculture regime that would facilitate market access consistent with international obligations. However, China has frustrated exporters through generous price support and unjustified market restrictions. Taking action against grain price supports was one piece of the puzzle, and now we must confront China’s improper administration of its TRQs to ensure that our grains have the meaningful market access that China bound itself to as a member of the WTO. Today’s announcement is another step towards advocating for fairness in the global trading system on behalf of American farmers.”

In a separate matter, USTR also announced today that it has requested that the WTO establish a dispute settlement panel to examine China’s level of domestic support for Chinese producers of rice, wheat, and corn. USTR launched a WTO challenge on this matter in September 2016, noting that China’s market price support for these commodities was estimated to be nearly $100 billion in excess of its WTO commitments. According to USTR’s analysis, China's domestic support measures and non-transparent TRQ regime work together to distort global markets for wheat, rice and corn. Compliance with WTO rules would lead to a reduction in the excessive domestic support provided to China’s grains producers to bring Chinese production in line with market forces, and improvements to China’s TRQ administration would facilitate market access for U.S. and other exporters of these commodities.

"In September, I joined in the bipartisan call for China to be held accountable to their World Trade Organization commitments. Today's enforcement action on China's administration of tariff-rate quotas for wheat, corn, and rice appears to be yet another example of China's refusal to play by the rules,” said Senator Pat Roberts, Chairman of the Senate Committee on Agriculture, Nutrition, and Forestry. “I am committed to working with our producers and alongside USDA and USTR as we continue to fight for U.S. farmers' ability to compete in the global market on a level playing field."

“China continues to ignore the commitments it made in joining the WTO,” said Representative K. Michael Conaway, Chairman of the House Agriculture Committee. “Not only is China unfairly subsidizing its producers to the detriment of American farmers, they are also refusing to provide the market access they promised.  We have been sounding the alarm, and I am pleased to see USTR taking action to hold China accountable.”

"We need to hold China accountable for unfair trade practices that hurt American farmers,” said Senator Debbie Stabenow, Raking Member of the Senate Committee on Agriculture, Nutrition, and Forestry. “I applaud the USTR for taking steps today to level the playing field so that our businesses can create jobs and compete in the global economy."

"China's strategy of gaming the system makes it virtually impossible for Oregon wheat growers and other American farmers to get the market access China promised when it joined the WTO,” said Senator Ron Wyden, Ranking Member of the Senate Finance Committee. “That access is essential to the livelihoods of farms and rural communities across the nation. Together with the action the Administration took in September challenging Chinese agriculture subsidies, launching this case demonstrates that the United States will fight for fair trade for farmers and rural communities."

"An equal playing field is vital for America's farmers to compete in a global marketplace," said House Agriculture Committee Ranking Member Collin Peterson. "It is imperative that the United States take this action to hold China accountable for failing to meet WTO commitments."

"Today we're again standing up and working to hold China accountable for cheating North Dakota farmers," said Senator Heidi Heitkamp, member of the Senate Committee on Agriculture, Nutrition, and Forestry. "When China or any other country cheats on a trade agreement, they make it harder for North Dakota wheat and corn farmers to access markets and get fair value for our state's top-notch crops. This is the second time the U.S. Trade Representative has brought an agricultural compliance case against China this year, and that's good news for North Dakota farmers and rural communities – especially when commodities prices are already challenging."

“I welcome this USTR action against China’s misadministration of tariff-rate quotas for rice, wheat, and corn. It is not the first, nor will it be the last, enforcement action brought against China, which routinely adopts protectionist policies ranging from unscientific regulations on biotech products to excessive market price supports for agriculture commodities,” said Representative Adrian Smith, member of the House Ways and Means Committee and Chair of the Modern Agriculture Caucus. “China represents a large and growing market for American producers, and our involvement in trade negotiations and institutions such as the WTO is what enables us to hold our trading partners accountable. We must continue to remain a vigilant and engaged actor in the international economy to ensure a level playing field for our farmers and ranchers.”

Overall, the Obama Administration has launched 24 trade enforcement challenges at the WTO since 2009 – more than any other country in the world over that period. USTR has won every trade enforcement challenge decided so far at the WTO, worth billions of dollars in trade opportunities for U.S. exporters. READ MORE about the Obama Administration’s trade enforcement record.

Challenging Chinese Grain Tariff Rate Quotas for Rice, Wheat, and Corn
In an effort to level the playing field for American farmers and hold the Chinese government to its trade commitments, USTR this week launched a new trade enforcement challenge at the WTO. This new challenge contends that China’s opaque and unpredictable management of TRQs for rice, wheat, and corn is inconsistent with WTO rules.

According to USTR’s analysis, China appears to administer its TRQs – which are necessary to import medium- or short-grain rice, long-grain rice, wheat, and corn at lower duty rates – in a manner inconsistent with the commitments in China’s Accession Protocol and the General Agreement on Tariffs and Trade 1994 (GATT 1994). China announces on an annual basis the opening of tariff-rate quotas. However, China’s application criteria and procedures are unclear, and China does not provide meaningful information on how it actually administers the tariff-rate quotas.  China’s administration of short- and medium-grain rice, long-grain rice, wheat, and corn TRQs is not transparent, predictable or fair.

China also appears to have breached its GATT 1994 obligations by administering TRQs in an unreasonable manner, by maintaining impermissible restrictions on importation, and failing to provide notice of the total quantities permitted to be imported and changes to the total quantity permitted to be imported.  China’s failure to comply with WTO rules means that traders are not able to enjoy full access to China’s tariff-rate quotas.

Despite lower global prices that favor the importation of grains into China, the TRQs for each commodity persistently do not fill.

During China’s accession to the WTO, it agreed to permit 2,660,000 metric tons (MT) of short- and medium-grain rice, 2,660,000 MT of long grain rice, 9,636,000 MT of wheat, and 7,20,000 MT of corn to enter China at lower “in quota” duty rates through its TRQs. Based on 2015 Chinese import prices, the total annual value of these TRQs was $2.99 billion for wheat, $ 1.13 billion for short- and medium-grain rice, $1.01 billion for long grain rice, and $1.90 billion for corn. The new U.S challenge launched today addresses whether China’s administration of the TRQs provides farmers around the world market- oriented access to the Chinese market.

Challenging Excessive Domestic Support for Rice, Wheat, and Corn
In a separate matter, USTR this week requested that the WTO establish a dispute settlement panel to consider whether China provides “market price support” for Indica (long-grain) rice, Japonica (short- and medium-grain) rice, wheat, and corn in excess of China’s domestic support commitments. China’s excessive market price support for these products inflates Chinese prices above market levels, creating artificial government incentives for Chinese farmers to increase production. In 2015 alone, China’s “market price support” for these products was nearly $100 billion in excess of the levels to which China committed during its accession to the WTO.

The United States requested consultations with China on September 13, 2016, regarding China’s provision of domestic support in excess of its WTO commitments. The parties held consultations on October 20, 2016, in Geneva, Switzerland.  The dispute was not resolved in consultations, and requesting a panel is the next step in the WTO dispute settlement process. The WTO Dispute Settlement Body will consider the U.S. panel request at a meeting scheduled for December 16, 2016.



Wheat Grower Organizations Welcome New Trade Enforcement Actions Challenging China Policies

 U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome two trade dispute actions by the U.S. Trade Representative (USTR) challenging Chinese government policies that distort the wheat market and harm wheat growers throughout the rest of the world. USW and NAWG are encouraged to see the U.S. government take such a strong position on trade enforcement, which is crucial for building confidence in existing and new trade agreements.

The USTR filed a request on Dec. 15, 2016, for consultations with the World Trade Organization (WTO), alleging that China is not fairly administering its annual tariff rate quotas (TRQ) for corn, rice and 9.64 million metric tons (MMT) of imported wheat. This request states that China’s TRQ administration unfairly impedes wheat export opportunities. The USTR announced the TRQ action simultaneously with a request that the WTO form a dispute panel in the case it filed in September against China’s excessive market price support for domestic wheat, corn and rice production.

“As with its price support case, the USTR is shining a light on other policies that pre-empt market driven wheat trade, stifle our export opportunities and force private sector buyers and Chinese consumers to pay far more for milling wheat and wheat-based foods,” said USW President Alan Tracy.

“The facts in these two cases go hand-in-hand, demonstrating how Chinese government policies create an unfair advantage for domestic wheat production,” said Gordon Stoner, president of NAWG and a wheat farmer from Outlook, Montana. “Both actions call attention to the fact that when all countries follow the rules, a pro-trade agenda and trade agreements work for U.S. wheat farmers and their customers.”

China’s wheat TRQ was established in its WTO membership agreement in 2001. Under that agreement, China is allowed to initially allocate 90 percent of the TRQ to be imported through government buyers, or state trading enterprises (STEs), with only 10 percent reserved for private sector importers. The private sector portion of the TRQ is functioning well enough to be filled in recent years, in part because Chinese millers are trying to meet growing demand for products that require flour from different wheat classes with better milling and baking characteristics than domestically produced wheat provides. However, China's notifications to the WTO on TRQ usage show an average fill rate of only 23 percent.

The WTO does not require that TRQs fill every year, but it has established rules regarding transparency and administration that are intended to facilitate the use of TRQs.

“When you consider that China’s domestic wheat prices are more than 40 percent higher than the landed cost of U.S. wheat imported from the Pacific Northwest, it would be logical to assume the TRQ would be fully used if the system were operating fairly, transparently and predictably as the rules intend. It is clearly not operating that way,” said Tracy. “This troublesome administration of China’s wheat TRQ is restraining export opportunities for U.S. wheat farmers and farmers from Canada, Australia and other wheat exporting countries to the detriment of Chinese consumers.”

The facts also argue against potential claims that enforcing the TRQ agreement would threaten China’s food security. China produces more wheat each year than any other single country and currently holds an estimated 45 percent of the world’s abundant wheat supplies. If China met its 9.64 MMT wheat TRQ, it would move up from number 14 to number 2 on the list of the world’s largest wheat importers, and its farmers would still produce 90 percent of domestically consumed wheat. Opening the wheat TRQ would also allow private sector millers and food producers to import the types of wheat they say they need, but cannot now obtain, and the benefits would be passed on to China’s consumers.

USW and NAWG also applaud the USTR’s request for a dispute panel in its WTO challenge to China’s trade-distorting market price support programs for wheat, corn and rice. It is a crucial step toward reining in a policy that costs U.S. wheat farmers between $650 and $700 million annually in lost income by pre-empting export opportunities and suppressing global prices, according to a 2016 Iowa State University study sponsored by USW.



USGC Statement on USTR and USDA Announcement on WTO China Action on TRQs
A statement from U.S. Grains Council (USGC) President and CEO Tom Sleight:

"The U.S. Grains Council believes in free and open trade and the importance of both strong trade policy and market development. These are the guiding principles of our relationship with China, a complex and important trading partner for U.S. agriculture.

"We also believe the WTO provides structure and accountability for global trade. Consultations and negotiations are integral parts of the WTO process, and similar to USTR's and USDA's Sept. 13 announcement regarding China's domestic support policies, we welcome the respective agencies' actions on this critical issue.

"We remain hopeful that this step and our ongoing work in China can continue to support a long-term, stable and mutually-beneficial trading relationship."



2016 Harvest Quality Report Rollouts Begin With North Africa Conferences

The U.S. Grains Council’s annual corn harvest quality report is now available to global customers, who will receive in-depth reviews of its results over the next two months at a series of conferences and consultations in major corn importing markets.

The first of these events took place in early December with two regional seminars in Cairo, Egypt, and Casablanca, Morocco, involving more than 130 participants from nine corn importing countries in the region. The countries included in the rollout events included Saudi Arabia, Jordan, Lebanon, the United Arab Emirates, Egypt, Turkey, Algeria, Tunisia and Morocco.

"Currently U.S. corn is very competitive in this region,” said Alvaro Cordero, USGC manager of global trade based in Washington, D.C. “In the first three months of this marketing year, the U.S. has exported 1.0 million metric tons (39.36 million bushels) of corn versus only 69,000 metric tons (2.7 million bushels) at the same time last marketing year. We want that surge to continue.”

While Black Sea corn harvest is trickling into the Middle East and North Africa, the quality of U.S. corn is superior, and buyers are both claiming and showing in their purchases a strong preference for U.S. corn.

The harvest quality report confirmed that U.S. farmers have again produced another record corn crop and that the quality of that crop is once again excellent relative to the previous five years.

While in the region, Cordero; Kurt Shultz, the director for global strategies for the Council; and Curt Mether, director for the Iowa Corn Growers Association; David Peschong, export merchandizer for Poet Nutrition; and Dr. Carl Reed, a retired professor from Kansas State University, met with key customers in aquaculture and beef feedlot operations to explore the use of U.S. DDGS.

The region imported more than 1.1 million metric tons of DDGS in 2016, with Turkey aggressively taking advantage of U.S. DDGS prices and importing nearly 786,000 metric tons in the first 10 months of 2016. Turkey alone should exceed 1 million metric tons of DDGS imports by the end of 2016.

"This region is very diverse and there is tremendous growth occurring, so the Council and its members need to be engaged and meeting with the grain trade," Shultz said. "They are hungry for more contact and trade with U.S. exporters, and we will be accelerating efforts in the region in 2017."

Similar roll-out events for the quality report have been scheduled by all of the Council's international offices over the next two months targeting established and potential importers. They will be complemented by one-on-one consultations with key customers as well as further outreach surrounding the release of the accompanying Export Cargo Quality Report, due out in the spring.



Growth Energy Endorses Coalition Letter to President-Elect Trump Supporting RFS and American Grown Energy

Today, Growth Energy, along with other members of Fuels America, sent a letter to President-elect Trump congratulating him on his successful election, and expressing a desire to work with the new administration to ensure that the Renewable Fuel Standard (RFS) remains a driving force of domestically produced renewable energy. The letter also urges his administration to continue to advance the development of homegrown renewable biofuels like ethanol that enhance our energy security, economic growth, and consumer choice.

Growth Energy CEO, Emily Skor, issued the following statement in support of the Fuels America letter:

“The members of Growth Energy are encouraged by President-elect Trump’s vocal support of the Renewable Fuel Standard (RFS). As he prepares to take office next month, we look forward to being an important part of the President-elect’s effort to improve manufacturing and employment in our country. America’s ethanol industry provides more than 10 percent of the nation’s vehicle fuel and ethanol is already blended in 97 percent of the gasoline currently sold. Clean burning ethanol also helps to significantly decrease our dependency on foreign oil, while simultaneously replacing toxic additives and reducing harmful emissions. This homegrown source of energy supports hundreds of thousands of American jobs, reduces fuel costs, and provides consumers with more choices at the pump.”



Syngenta helps growers share their sustainability stories

As consumers demand more transparency and sustainability from the U.S. agriculture industry, Syngenta is working with growers across the country to develop measurable sustainability initiatives. The primary goals of these Sustainable Solutions initiatives are to provide workable solutions for producing more food from fewer resources and to increase awareness of the sustainability practices that already exist in agriculture.

“One thing consumers may not know about farming is that we’re the most environmentally conscious people you’ll ever meet,” said Chad Rubbelke, a grower from Minot, North Dakota. “We live on the land where we farm. It’s our home and our career, so we take all steps possible to treat it properly.”

Rubbelke and other growers who have chosen to partner with Syngenta on these initiatives collect more than 200 farm data points per acre to analyze within Land.db®, the cloud-based software that is part of the AgriEdge Excelsior® program, a whole-farm management program from Syngenta. Analysis of this grower-owned data not only helps them measure their current sustainability efforts, but it also can indicate possible ways to make improvements.

Some of the most recent findings include the following:
·       One third of participating growers in the Red River Valley used cover crops on their fields, which helps to improve soil health and water quality.
·       In North Dakota, over 90 percent of wheat fields used no-till practices on their farms to help protect fields from soil erosion and reduce cultivation costs.
·       Growers in Idaho who practiced soil sampling reduced nitrogen use while enjoying a yield increase on barley acres, compared to growers who didn’t soil sample.

From a grower perspective, this precise data and analysis provide insight into the impact of their farm-management choices when it comes to crop protection products, greenhouse gas (GHG) emissions, cover crops, tillage, water usage and more. Stewart Opland, a participating grower from Des Lacs, North Dakota, said one of the pivotal moments for him after using Land.db was when he understood how fertilizer impacts GHG emissions.

“We obviously need fertilizer to grow our crops and sustain our business,” he said. “But by understanding how applying it can impact the environment, we’ve been able to make sure we’re using it as efficiently as possible.”

Consumer-packaged-goods companies are joining Syngenta and growers like Opland to provide the transparency consumers are demanding about how their food is produced. Liz Hunt, Sustainable Solutions lead at Syngenta, helps connect these downstream companies to growers.

“These collaborations not only enable the food and beverage companies to satisfy the consumer requests for transparency,” Hunt said, “but they are also helping growers make their crops more marketable and sustain their farming businesses for generations to come.”