Thursday May 18 Ag News

Ricketts Announces Second International Trade Mission to Japan

Today, Governor Pete Ricketts announced plans to lead a second international trade mission to Japan, nearly two years after his inaugural visit to Nebraska’s number one direct foreign investor and third largest trading partner.  Governor Ricketts shared details on the trade mission at Lincoln’s Kawasaki plant while celebrating the opening of the company’s new aerospace division.  The Governor met with Kawasaki leaders in Japan during his 2015 trade mission to thank the company for their substantial investments in Nebraska, which have spanned more than 40 years.

“Japanese business facilities employed 4,410 people in Nebraska in 2016,” said Governor Ricketts.  “Meeting personally with business leaders during trade missions gives us a chance to promote our state as a destination for foreign direct investment and create opportunities to grow quality jobs.”

The Governor’s international trade mission is scheduled for September 10-16, 2017.  Throughout the trip, Governor Ricketts and the Nebraska delegation will have an opportunity to strengthen relationships with current and potential investors, as well as host events to promote Nebraska products.

Gov. Ricketts will lead the mission in conjunction with the Nebraska Department of Economic Development (DED) and Department of Agriculture (NDA).  DED Director Courtney Dentlinger and NDA Director Greg Ibach will join the Governor during the Japan trade mission, along with members of the Nebraska delegation.  The Governor encourages Nebraska agriculture and business representatives to consider joining the trade mission for an opportunity to meet with government officials, community leaders, and industry representatives.

“Japan continues to be one of Nebraska’s most important trading partners.  In 2015, total agricultural and manufactured exports from Nebraska to Japan equaled an estimated $1.13 billion.  The trade mission is an unparalleled opportunity for our own business leaders to connect with companies who have an interest in buying our products and services,” said DED Director Courtney Dentlinger.  “Traveling to Japan with a diverse team of company, community, and academic representatives also gives us an opportunity to represent the state in the best possible light to potential investors.”

NDA Director Greg Ibach stressed the importance of increasing Nebraska’s ag exports and commodities in Japan.  Over the past several years, this highly-urbanized country, with a population of nearly 127 million, has experienced a growing demand for quality agricultural products.

“Nebraska agricultural products have a strong demand in the Japanese marketplace and through trade missions like this one, we continue to build new and strengthen established relationships,” said NDA Director Greg Ibach.  “Since Nebraska’s last trade mission to Japan in 2015, Nebraska’s beef exports have grown 31 percent and pork exports 32 percent into the country.  In 2016, Nebraska exported $316 million worth of beef and $191 million worth of pork products to Japan – making Japan the largest Nebraska export market for both beef and pork.”

Ibach noted that Japan is also the second largest export market for U.S. corn and wheat and the third largest export market for U.S. soybeans.

DED, NDA, and the Nebraska Center Japan in Yokohama developed the Nebraska Delegation’s itinerary for the upcoming trade mission, which includes visits to Tokyo, Shizuoka, and the Kansai region.

The delegation’s first stop in Tokyo includes a visit to the annual conference of the Midwest U.S.-Japan Association and the Japan-Midwest U.S. Association.  The Midwest U.S.-Japan Association is comprised of eight Midwestern states, including Nebraska, and is designed to bolster international relationships with companies with a particular interest in growing in the central U.S. 

In 2016, Gov. Ricketts addressed delegates during the 48th annual conference in St. Louis.  During the event, the Governor highlighted Nebraska’s long-standing relationship with Japan and announced that Omaha will host the 2018 joint conference for the association’s 50th anniversary.

In addition to the conference, trade mission delegates will participate in promotional events and business meetings that will occur in Tokyo over four days.

Governor Ricketts and the trade delegation will also visit Shizuoka, which is a sister city of Omaha, Nebraska where they will promote investment opportunities in Nebraska.

The trade delegation will spend the last two days of the trade mission in the Kansai region, where they will hold a variety of events and meetings in Osaka, Kobe, and Kyoto.  Kawasaki and several other Japanese companies with investments in Nebraska are based in the Kansai region.

Because space is limited, company officials interested in participating in the trade mission should fill out this application form: http://nediplomats.com/2017-trade-mission/. 



Rural Mainstreet Climbs to Highest Level in Almost Two Years - One-Fourth Bank CEOs Support June Fed Rate Hike

After dropping below growth neutral for 20 straight months, the Creighton University Rural Mainstreet Index moved above the 50.0 threshold for May according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.  

Overall: The index, which ranges between 0 and 100, climbed to 50.1 from 44.6 in April. May’s reading was the highest recorded reading since July 2015. The last time the overall index was at or above growth neutral was August 2015.

“Stabilizing and slightly improving farm commodity prices helped push the overall index into a weak but above growth neutral for May,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “The U.S. Department of Agriculture is projecting that net U.S. farm income will sink by 8.7 percent to $62.3 billion for 2017, the fourth consecutive year of declines after reaching a record high in 2013. This downward trend has weighted on our survey results for almost two years.”

This month, and in May 2016, bank CEOs were asked to name the biggest economic challenge to their banking operations over the next five years. The largest share of bankers, or 28.9 percent, named rising regulatory costs as the top challenge or risk. This is almost the same percent as 2016. More than one in five, or 26.7 percent, detailed government subsidized competition from Farm Credit and credit unions as the greatest challenge, or almost double the 13.6 percent reported in May 2016.

More than one of 10 bankers, or 11.1 percent, reported that farm foreclosures represented the greatest risk to banking operations for the next five years, or more than double the 4.5 percent of bankers who identified such foreclosures as the greatest risk last year at this time.

In terms of risk to the rural economy, almost nine of 10 bankers, or 86.7 percent, think low agriculture commodity prices are the greatest threat to the rural economy. This is down slightly from the 90.9 percent who detailed the same risk in May 2016.

Nebraska: The Nebraska RMI for May jumped to 50.5 from 43.9 in April. The state’s farmland-price index rose to 36.7 from April’s 30.4. Nebraska’s new-hiring index expanded to 66.4 from 59.3 in April.

Iowa: The May RMI for Iowa climbed to 49.4 from 39.1 in April. Iowa’s farmland-price index for May slipped to 34.9 from 35.8 in May. Iowa’s new-hiring index for May climbed to 60.8 from April’s 51.5.

Farming and ranching: The farmland and ranchland-price index for May rose to 36.4 from April’s frail 30.7. This is the 42nd straight month the index has languished below growth neutral 50.0, but is the highest recorded reading since September 2016.

The May farm equipment-sales index increased to 26.8 from 21.5 in April. This marks the 45th consecutive month the reading has fallen below growth neutral 50.0, and is the highest recorded reading since January 2015.

Almost one in four bank CEOs, or 24.5 percent, said the Federal Reserve should increase short-term interest rates at its next meeting on June 14. On the other hand, approximately 22.2 percent want the Fed to keep rates at current levels.

Confidence: The confidence index, which reflects expectations for the economy six months out, expanded to a weak 46.6 from 45.6 in April indicating a continued pessimistic outlook among bankers. “Until agricultural commodity prices begin to trend higher, I expect banker’s economic outlook to remain weak,” said Goss.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



GRAZE ACCORDING TO MOISTURE CONDITIONS
Bruce Anderson, NE Extension Forage Specialist

               It takes rain to grow grass.  While some areas still are quite dry, most others recently have greatly increased their soil moisture.

               When moisture is plentiful and temperatures get warm, grass grows rapidly.  There are several ways you can reap maximum benefits from extra grass.  But you must be able to control when and where your animals graze to take advantage of this grass.  And that means fencing and management.

               One option for extra grass is to cut hay for winter feed.  If you select this option, choose the area you plan to cut for hay now so you can prevent animals from grazing there, both before and after cutting hay.  Build or repair fences if needed.

               Another option is stockpiling extra growth in a pasture for grazing next winter.  This can save on winter hay and is inexpensive to try.  It also is a good way to strengthen plants following drought or a hard winter.  On summer rangeland, you need to start accumulating growth no later than early July by fencing cows out of the planned winter pasture.  If, instead, your winter pasture will be from cool-season grasses like bromegrass, wheatgrass, or fescue, be ready to fence off and save the winter grazing portion by late July or early August.  And don't overgraze that area this summer or late season growth will be slow.

               Finally, simply start or improve a planned rotational grazing program this summer.  Your pasture plants will recover well during their rest periods, building deep and healthy root systems that will maintain production when it finally does turn dry.

               Don't just be satisfied when abundant rain gives you extra grass.  Take advantage of this growth for long term benefits.



Synchronization Protocols for Cows

The Beef Reproductive Task Force has released its 2017 recommended synchronization protocols for beef producers.

"These recommendations are designed to optimize pregnancy rates," said Taylor Grussing, South Dakota State University Extension Cow/Calf Field Specialist.

Recommendations are based on review of current research and field-use of bovine estrous synchronization protocols.

Two sets of protocols are released. One for cows and one for heifers. "This is due to the physiological differences in the timing of key events, such as ovulation," Grussing explained.

The protocols are outlined for step-by-step instructions of how to carry out each synchronization protocol, detailing the number of days required for each protocol, products needed and timing for each step. The 2017 protocols can be viewed at the UNL website at beefrepro.unl.edu/resources.html.

Beef producers can choose from between 3 types of synchronization protocols for cows:

1. Heat Detection: Select Synch, Select Synch + CIDR, PG 6-day CIDR

2. Heat Detection and Time AI: Select Synch & TAI, Select Synch + CIDR & TAI, PG 6-day CIDR & TAI

3. Fixed-Time AI: 7-day CO-Synch + CIDR, 5-day CO-Synch + CIDR

Heat Detection: Heat detection protocols work by setting cows up to show visual estrus and then to be bred by an AI technician 12 hours after the onset of standing heat.

In order for heat detection protocols to return acceptable pregnancy rates, cows need to be frequently monitored for visual signs of estrus.

Check cows at least three times per day for a half hour each time, with extra time spent detecting heat at sunrise and sunset as research shows that 56 percent of cows show heat from 6 p.m. to 6 a.m.

Heat detection aids are also available to assist in identifying cows in heat when no one is watching.

For this reason, when using a heat detection protocols, it is important to train people to look for specific signs of estrus behavior in order to detect cows coming into estrus, during estrus and after estrus.

Heat detection & Time-AI: Heat detection and Time-AI protocols are the same as heat detection protocol steps with the exception of the shorter duration of time for heat detection.

After the three days of heat detection, any animals that have not shown signs of estrus are given an administration of GnRH (product that causes ovulation to occur within 30 hours) and fixed-time AI at that time.

Even though these cows may not be showing visual estrus, there is a possibility that fertilization can still occur.

Fixed-Time AI: Fixed-Time AI protocols are designed to breed all cows at a predetermined time as these protocols synchronize ovulation and not necessarily visual estrus.

These protocols are more labor intensive and expensive than the previously described protocol categories, as they require more trips through the chute and injections. However, there is no heat detection with fixed-time AI, so the value of labor saved not heat detecting can go towards funding these more intensive protocols.

In order for these recommended protocols to be most effective, cows should meet some minimum qualifications before beginning an estrous synchronization protocol.

Body condition score (BCS) is important for reproductive efficiency. Cows should be in a BCS of 5 at protocol initiation. Also, cows should be 50 days postpartum before starting protocols.

By waiting 50 days after calving, cows should have completed uterine involution and resumed fertile estrous cycles which will give them better chances of conceiving than if started earlier.

There are several steps to each protocol that must be carried out correctly in order to achieve the best pregnancy rates possible. Yet, we know mistakes happen and the environment cannot be controlled.

In order to assist producers in scheduling estrous synchronization protocols, the Beef Reproductive Task Force has a free Estrous Synchronization Planner available to download in Excel.

"This program allows producers to select the specific protocol they want to use, date to breed and products to use," Grussing said.

She explained that the spreadsheet back calculates date to start the protocol, when to administer injections and breeding. It even calculates when to turn in the cleanup bull. Once complete, a check list and calendar can be printed out for easy access.

This free calculator can be accessed at the Iowa State Extension website at www.iowabeefcenter.org/estrussynch.html.



NORTHERN PLAINS FARM LABOR

In the Northern Plains Region (Kansas, Nebraska, North Dakota, and South Dakota) there were 32,000 workers hired directly by farm operators on farms and ranches during the week of April 9-15, 2017, down 6 percent from the April 2016 reference week, according to the USDA's National Agricultural Statistics Service. Workers numbered 27,000 during the week of January 8-14, 2017, down 10 percent from the January 2016 reference week.

Farm operators paid their hired workers an average wage of $14.02 per hour during the April 2017 reference week, up slightly from the April 2016 reference week. Field workers received an average of $14.81 per hour, up 71 cents. Livestock workers earned $12.47 per hour compared with $13.08 a year earlier. The field and livestock worker combined wage rate, at $13.55, was up 5 cents from the April 2016 reference week. Hired laborers worked an average of 40.2 hours during the April 2017 reference week, compared with 42.0 hours worked during the April 2016 reference week.

Farm operators in the Northern Plains Region paid their hired workers an average wage of $14.13 per hour during the January 2017 reference week, up 1 percent from the January 2016 reference week. Field workers received an average of $14.76 per hour, up 37 cents. Livestock workers earned $12.77 per hour, down 6 cents. The field and livestock worker combined wage rate, at $13.50, was up 20 cents from the 2016 reference week. Hired laborers worked an average of 38.4 hours during the January 2017 reference week, compared with 41.4 hours worked during the January 2016 reference week.

Iowa Farm Labor Report
During the reference week of April 9-15, 2017, there were 18,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri). Farm operators paid their hired workers an average wage rate of $13.41 per hour during the April 2017 reference week, up $0.24 from April 2016. The number of hours worked averaged 37.2 for hired workers during the reference week, down from 37.8 hours in April 2016.

There were 15,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri) during the reference week of January 8-14, 2017, according to the latest USDA, National Agricultural Statistics Service – Farm Labor Report. Farm operators paid their hired workers an average wage rate of $13.82 per hour, up $0.59 from January 2016. The number of hours worked averaged 35.3 for hired workers during the reference week, compared with 36.1 hours in January 2016.

U.S. Farm Labor Report
There were 673,000 workers hired directly by farm operators on the Nation's farms and ranches during the week of April 9-15, 2017, down 4 percent from the April 2016 reference week. Workers hired directly by farm operators numbered 533,000 during the week of January 8-14, 2017, down 8 percent from the January 2016 reference week.

Farm operators paid their hired workers an average wage of $13.23 per hour during the April 2017 reference week, up 4 percent from the April 2016 reference week. Field workers received an average of $12.22 per hour, an increase of 2 percent. Livestock workers earned $12.53 per hour, up 4 percent. The field and livestock worker combined wage rate, at $12.32 per hour, was up 3 percent from the 2016 reference week. Hired laborers worked an average of 40.4 hours during the April 2017 reference week, equaling the hours worked during the April 2016 reference week.

Farm operators paid their hired workers an average wage of $13.43 per hour during the January 2017 reference week, up 5 percent from the January 2016 reference week. Field workers received an average of $12.15 per hour, up 3 percent, while livestock workers earned $12.66 per hour, up 5 percent from a year earlier. The field and livestock worker combined wage rate, at $12.35 per hour, was up 4 percent from the January 2016 reference week. Hired laborers worked an average of 38.0 hours during the January 2017 reference week, compared with 38.8 hours worked during the January 2016 reference week.

For the April 2017 reference week, the largest percentage increases in the number of hired workers from the 2016 reference week occurred in the Florida, Northeast II (Delaware, Maryland, New Jersey, and Pennsylvania), and Southeast (Alabama, Georgia, and South Carolina) regions. The Southeast region saw the largest increase, with 36 percent more workers on the region's farms.

The largest percentage decreases in the number of hired workers from the 2016 reference week occurred in the Cornbelt I (Illinois, Indiana, and Ohio), Lake (Michigan, Minnesota, and Wisconsin), and Southern Plains (Oklahoma and Texas) regions. Cornbelt I saw the biggest decline, with workers down 23 percent from the 2016 reference week. The largest percentage increases in average wage rates for all hired workers occurred in the Appalachian I (North Carolina and Virginia), Hawaii, and Northeast I (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) regions.

For the January 2017 reference week, the largest percentage increases in the number of hired workers from the 2016 reference week occurred in the Appalachian II (Kentucky, Tennessee, and West Virginia), Northeast II (Delaware, Maryland, New Jersey, and Pennsylvania), and Southeast (Alabama, Georgia, and South Carolina) regions. The Southeast region saw the largest increase, with 41 percent more workers on the region's farms.

The largest percentage decreases in the number of hired workers from the 2016 reference week occurred in the Lake (Michigan, Minnesota, and Wisconsin), Mountain III (Arizona and New Mexico), Pacific (Oregon and Washington), and Southern Plains (Oklahoma and Texas) regions. Pacific saw the biggest decline, with workers down 27 percent from the 2016 reference week. The largest percentage increases in average wage rates for all hired workers occurred in the Appalachian I (North Carolina and Virginia), Mountain I (Idaho, Montana, and Wyoming), Northeast I (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont), and Southern Plains regions.



Tax Reform Central to Improving Economy, Farm Bureau Tells Congress

Farmers and ranchers need the economic benefits that will follow from tax reform, the American Farm Bureau Federation told Congress in testimony submitted to the House Ways and Means Committee today.

Weather, high debt-service, a lack of liquidity and the difficulties of passing on land from one generation to the next all make taxation an important issue for farmers and ranchers.

AFBF asked legislators to ensure that tax reform results in lower effective tax rates for small and family-owned farms and ranches as well as for corporations. The group urged lawmakers to:
-    Continue cash accounting, which matches farm income and expenses better than accrual accounting methods to help farmers pay their bills and manage their taxes;
-    Preserve interest deductibility – an important matter at a time when the Agriculture Department estimates 17.9 percent of fixed farm and ranch expenses go to interest payments;
-    Reduce capital gains taxes, which help families pass farms to the next generation;
-    Continue like-kind exchanges to defer taxes when farmers and ranchers sell assets and purchase similar property to replace them. Without like-kind exchanges, some farmers and ranchers would need to borrow to continue their farm or ranch businesses or, worse yet, delay mandatory improvements to maintain the financial viability of their farm or ranch;
-    Eliminate the estate tax, which unduly penalizes farm owners who on average earn a small fraction of the income they might enjoy if they invested their dollars elsewhere.



Secretary Perdue Statement on Administration’s Intent to Renegotiate NAFTA

Agriculture Secretary Sonny Perdue issued the following statement today after U.S. Trade Representative Robert Lighthizer notified Congress that President Trump intends to renegotiate the North American Free Trade Agreement (NAFTA):

"While NAFTA has been an overall positive for American agriculture, any trade deal can always be improved. As President Trump moves forward with renegotiating with Canada and Mexico, I am confident this will result in a better deal for our farmers, ranchers, foresters, and producers.  When the rules are fair and the playing field is level, U.S. agriculture will succeed and lead the world. It's why we recently announced the creation of an undersecretary for trade at USDA, because as world markets expand, we will be an unapologetic advocate for American agriculture. As I have often said, if our people continue to grow it, USDA will be there to sell it," said Secretary Perdue.

Background:
Last week, Secretary Perdue announced the creation of an undersecretary for trade and foreign agricultural affairs in the USDA, a recognition of the ever-increasing importance of international trade to American agriculture. The new undersecretary will work hand in hand with Commerce and the USTR and help open up even more markets to American products.

Agricultural trade is critical for the U.S. farm sector and the American economy as a whole.  U.S. agricultural and food exports account for 20 percent of the value of production, and every dollar of these exports creates another $1.27 in business activity.  Additionally, every $1 billion in U.S. agricultural exports supports approximately 8,000 American jobs across the entire American economy.  As the global marketplace becomes even more competitive every day, the United States must position itself in the best way possible to retain its standing as a world leader.



NAFTA Modernization Must Not Disrupt Pork Exports

Following today’s notification by the Trump administration to Congress that it intends to modernize the trade agreement among the United States, Canada and Mexico, the National Pork Producers Council urged the president to make sure that tariffs remain at zero for pork traded in North America.

The White House today officially notified the Senate Finance and House Ways and Means committees, which have jurisdiction over trade, that the administration will update the 23-year-old North American Free Trade Agreement (NAFTA). The notification begins a 90-day period in which Trump trade officials must consult with Congress on the objectives of the trade talks; 30 days prior to negotiations starting, the administration must make public a “detailed and comprehensive summary of the specific objectives” for a new agreement.

NPPC committed to work with the administration to preserve tariff-free market access for U.S. pork exports to Canada and Mexico, which last year were almost $799 million and nearly $1.4 billion, respectively.

“Canada and Mexico are top pork export markets. We absolutely must not have any disruptions in exports to our No. 2 (Mexico) and No. 4 (Canada) markets,” said NPPC President Ken Maschhoff, a pork producer from Carlyle, Ill.

Since NAFTA went into effect Jan. 1, 1994, U.S. trade north and south of the borders has more than tripled, growing more rapidly than U.S. trade with the rest of the world. Canada and Mexico are the two largest destinations for U.S. goods and services, accounting for more than one-third of total U.S. exports, adding $80 billion to the U.S. economy and supporting more than 3 million American jobs, according to data from the Office of the U.S. Trade Representative. In fact, U.S. manufacturing exports to Canada and Mexico have increased nearly 260 percent over the past 23 years, and U.S. farm exports to the countries have grown by more than 150 percent.

Under Trade Promotion Authority (TPA), which Congress approved in June 2015 and which covers trade agreements reached before July 1, 2018, the administration is required to give lawmakers 90-days’ notice prior to entering talks on a trade deal that would require changes in U.S. law needed to comply with the agreement. TPA also requires Congress to consider agreements it receives within a specified time and to vote for or against them without amendments.

“U.S. pork trade with Canada and Mexico has been very robust, and we need to maintain and even improve that trade,” Maschhoff said. “We will work with the Trump administration to do that as it reviews the existing trade deal with our North American neighbors.”



NCBA Joins Canadian, Mexican Partners in Presidential Letter: “Don’t Jeopardize Our Success Under NAFTA”

The National Cattlemen’s Beef Association today joined its cattle-industry partners in Canada and Mexico in sending a joint letter to the presidents of those two nations and to President Trump, urging the three leaders to not “jeopardize the success we have all enjoyed as partners of the North American Free Trade Agreement.”

The letter to President Trump, President Justin Trudeau of Canada, and President Enrique Pena Nieto of Mexico was signed by NCBA President Craig Uden, Dan Darling, president of the Canadian Cattlemen’s Association, and Oswaldo Chazaro Montalvo, president of the Confederación Nacional de Organizaciones Ganaderas.

“Recent statements about the possible dissolution of NAFTA or potential renegotiation of NAFTA are deeply concerning to us because of the unnecessary risk it places on our producers,” the letter states. “While there may be general agreement among the countries to improve some parts of the NAFTA trade framework, we urge you to recognize that the terms of the agreement affecting cattle producers are strongly supported as they currently exist and should not be altered.”

 The groups also urged Presidents Trump, Trudeau, and Nieto to “reject efforts to use NAFTA as a platform to resurrect failed policies, especially the misguided mandatory country-of-origin labeling policy that was the law of the United States for over seven years.”

“M-COOL failed to deliver its proponents’ promise to increase consumer demand or consumer confidence,” the groups said. “Instead, it created massive disruptions in live cattle trade that hurt beef producers across North America and jeopardized the jobs of American workers that depend on processing those cattle.”

NCBA has worked for years to expand access to foreign markets for America’s cattle and beef producers and in a February op-ed on CNN.com Uden called NAFTA “one of the greatest success stories in the long history of the U.S. beef industry.”

“Since NAFTA was implemented in 1993, exports of American-produced beef to Mexico have grown by more than 750%, according to the U.S. Meat Export Federation,” Uden said. “In addition, exports now account for as much as 13% of overall U.S. beef production -- and it's more likely to be higher-quality cuts that bring in higher revenues for the hundreds of thousands of American families in the beef community.”



Dairy Industry Welcomes Swift Action by USTR Lighthizer to Launch NAFTA Modernization Efforts

The U.S. dairy industry commended Robert Lighthizer, the newly confirmed U.S. Trade Representative, for taking swift action under the Bipartisan Congressional Trade Priorities and Accountability Act (TPA) to begin the process for modernizing the North American Free Trade Agreement (NAFTA).

In a notification letter sent today to Congress, Ambassador Lighthizer outlined some of the areas of the agreement that are either outdated or missing – several of which are important to the U.S. dairy industry – and reaffirmed commitment to pursuing the trade priorities outlined by TPA, including goals related to market access and curbing the abuse of geographical indications. He also emphasized the importance of effectively implementing and aggressively enforcing the commitments made by Canada and Mexico, two of the dairy industry’s top trade partners.

The International Dairy Foods Association (IDFA), the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) have repeatedly urged administration officials and legislators to focus on maintaining what has worked well, such as trade with Mexico, the top market for U.S. dairy exports. The dairy groups have also continued to call for improving market access to Canada and tackling that country’s expanding list of protectionist policies and other barriers to U.S. dairy exports.

“As an industry, we fully support the administration’s call to modernize NAFTA. Without this trade agreement and the market access it provides, the United States would stand to lose nearly $2 billion annually in dairy exports and tens of thousands of farming and manufacturing jobs in communities across the country,” said Michael Dykes, D.V.M., IDFA president and CEO. “The issues of geographical indications, intellectual property rights and ways to resolve sanitary and phytosanitary measures (SPS) are also of keen interest to the dairy industry. We look forward to working with Ambassador Lighthizer and other Trump Administration officials during the renegotiation process to provide helpful data and input.”

“We agree with Ambassador Lighthizer that the current NAFTA agreement has areas upon which we can build as the renegotiation process begins, including the market we have developed in Mexico,” said Jim Mulhern, president and CEO of NMPF. “Obviously, dairy trade with Canada – where we continue to face 200%-300% tariffs and a slew of nontariff policies that distort dairy trade – is an entirely different story, and we need to address it as part of these talks. Central to any successful NAFTA negotiations will be changes to Canada’s new policies designed to harm bilateral trade and dump their structural dairy surplus on the world market.”

"With this first step, I now encourage the administration to swiftly commence modernization negotiations with our NAFTA partners and prioritize their quick conclusion," said Tom Vilsack, president and CEO of USDEC. “Mexico is our only $1 billion dairy market; finding a replacement for sales that are so critical to supporting tens of thousands of jobs across this country is no small task, so preserving it is essential. At the same time, numerous opportunities exist to shore up open trade and further deepen it with our NAFTA partners, such as addressing Canada’s tariff and nontariff constraints on dairy trade, instituting stronger SPS commitments and ensuring that geographical indications are not used to restrict the use of common names.”



NCGA Statement on NAFTA Modernization

Today U.S. Trade Representative Robert Lighthizer formally notified Congress of the Trump Administration’s plans to modernize the North American Free Trade Agreement (NAFTA) with Canada and Mexico.

National Corn Growers Association President Wesley Spurlock urged Lighthizer to remember the interests of U.S. agriculture as they begin modernizing the agreement.

“The Trump Administration understands that NAFTA has been an unequivocal success story for American agriculture,” said Spurlock.

“Exports are one pillar of a strong farm economy, accounting for 31 percent of farmer income. Nowhere is the importance of trade stronger than right here in North America. Since NAFTA was implemented, U.S. agricultural exports to Canada and Mexico have tripled and quintupled, respectively. We export billions of dollars of corn and corn products to these countries each year.

“The National Corn Growers Association will work closely with the Trump Administration and Congress to build on the successful trade relationship we have with Canada and Mexico. We want to ensure any updates to NAFTA maintain or increase opportunities for America’s farmers and ranchers.”

Today’s announcement means trilateral negotiations could begin as early as August 16. USTR will publish goals for the negotiations at least 30 days prior to negotiations.



U.S. Grains Council Statement On NAFTA Renegotiation Process

On Thursday, the Trump Administration formally informed Congress it intends to renegotiate the North American Free Trade Agreement (NAFTA). Below is a statement from Chip Councell, chairman of the U.S. Grains Council (USGC) and a farmer on the Eastern Shore of Maryland:

“NAFTA is the most critical free trade agreement on the books for U.S. grain farmers, providing open access to countries that are among our top corn, sorghum and barley export markets as well as significant and growing markets for distiller’s dried grains with solubles (DDGS) and meat products made using grain. This agreement has served our industry extremely well over the past 20 years, allowing us and our customers there to integrate operations and build deep relationships that both sides value.

“Our top priority in the modernization of NAFTA is to maintain this market access and keep in place what we and our customers have built. For instance, all corn products currently go into Mexico and Canada duty-free, with sales last marketing year of $2.7 billion in commodity corn alone. That demand is an essential part of ensuring farmers can continue to farm in this economy.

“We look forward to working with the Trump Administration, Congress and our partners in Canada and Mexico as this process progresses to ensure our neighbors remain our top customers.”



American Farm Bureau Looks Forward to NAFTA Renegotiation
AFBF President Zippy Duvall:

“With the delivery of the required formal notice to Congress, the Trump administration has officially taken the first step toward renegotiating the North American Free Trade Agreement. The American Farm Bureau looks forward to working with the administration, Congress, other agricultural groups, and officials in Canada and Mexico to protect these important markets while also addressing issues that have limited the trade potential of U.S. farmers and ranchers. We remain committed to the goal of a positive, market-expanding and modernized NAFTA. Achieving this objective starts with ensuring the negotiations protect U.S. agriculture’s benefits under the current trade agreement.

“The 2015 Trade Priorities and Accountability Act gives farmers, ranchers, the agriculture community and other stakeholders the opportunity to provide input and share our significant expertise with U.S. negotiators. Our ability to be part of these negotiations is important to our members and will help ensure the outcome improves trade relationships with our neighboring countries. Mexico and Canada are two of our largest export markets for the commodities and products raised on U.S. farms and ranches. America’s farmers and ranchers value them as customers and trade partners. We will work to ensure the renegotiation strengthens that critical relationship.”



NGFA and leaders of U.S. Food & Ag Dialogue for Trade

The National Grain and Feed Association is a leader on the Implementing Team of the U.S. Food and Agriculture Dialogue for Trade (Dialogue), which today commended U.S. Trade Representative Robert Lighthizer for officially notifying Congress given the Trump administration's previously announced intent to negotiate a "modernization" of the North American Free Trade Agreement (NAFTA) with Mexico and Canada.

"Our North American trading partners represent U.S. food and agriculture's largest export market, with total U.S. agricultural exports to Canada and Mexico more than quadrupling since NAFTA came into effect," said Dialogue Implementing Team Co-Chairs Gary Martin, president and chief executive officer of the North American Export Grain Association, and William Westman, senior vice president for international affairs with the North American Meat Institute. "As modernization of NAFTA is negotiated, it is critical to preserve the considerable gains that have been achieved for U.S. food and agriculture. We look forward to consulting with the administration, and interacting with Congress and other entities to incorporate the views of the U.S. Food & Ag Dialogue for Trade as the U.S. negotiating position is developed."

More than 200 associations, companies and individuals nationwide currently participate in the Food and Agriculture Dialogue for Trade.



Wheat Industry Looks for New NAFTA Opportunities, But Priority Remains Do No Harm

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) urge caution today as the Trump Administration officially submitted to Congress its notice of intent to renegotiate the North American Free Trade Agreement (NAFTA). The U.S. wheat industry welcomes the opportunity for improving the framework for cross border wheat trade between the United States, Canada and Mexico, but would strongly oppose changes that might limit the current NAFTA’s benefits for wheat farmers and their customers, particularly in the Mexican food processing industries.

Since NAFTA entered into force on Jan. 1, 1994, trade has boomed between the United States, Canada, and Mexico. Specifically, NAFTA delivered a winning combination of free trade on a level playing field and a growing Mexican middle class with the income to demand better products, including food using imported wheat. Following years of market development work and duty free access, Mexico dramatically increased its U.S. wheat imports after NAFTA and imports in the current marketing year are up 40 percent, making Mexico our largest buyer.

“I cannot emphasize enough how important our Mexican customers are to U.S. wheat farmers,” said Jason Scott, a wheat farmer from Easton, Md., and USW Chairman. “There is nothing wrong with modernizing a 23-year-old agreement, but that must be done in a way that benefits the food and agriculture sectors in both countries.”

Negotiating a new NAFTA certainly can make improvements. A good place to start are the sanitary and phytosanitary (SPS) rules that the three countries already agreed to as part of the Trans-Pacific Partnership (TPP) negotiations. 

“If the administration intends on renegotiating NAFTA, it must guarantee growers that new terms won’t reverse the significant benefits for U.S. wheat farmers, like duty free access,” said David Schemm, a wheat farmer from Sharon Springs, Kan., and NAWG President. “Despite the risks, there’s an opportunity here to get better trade rules in place that will set the gold standard for trade agreements going forward, without hurting wheat farmers and their importing customers.”



NMPF Facilitates NCIMS Passage of Proposals to Enhance Safety of Dairy Foods
The National Milk Producers Federation (NMPF) helped secure several positive developments for dairy farmers and their cooperatives at the National Conference on Interstate Milk Shipments (NCIMS) this week, as multiple NMPF-led initiatives won approval from the NCIMS delegates during their biennial meeting here.

The NCIMS is a national cooperative regulatory program that includes state milk regulatory agencies, dairy companies and the U.S. Food and Drug Administration (FDA), which work together to ensure the safety and integrity of Grade “A” dairy products. The six-day NCIMS meeting concluded Wednesday, after delegates approved approximately 40 of the 100 proposals offered to revise the conference’s model milk sanitation ordinance and supporting documents.

“NMPF appreciates the opportunity to advocate on behalf of our members and is proud of our relationship with the NCIMS Conference and its participants,” said NMPF Vice President for Dairy Foods Beth Briczinski. “The collaborative spirit of this year’s conference again demonstrated the NCIMS motto of ‘Assuring the Safest Possible Milk Supply for All the People.’”

NMPF staff and members significantly contributed to the drafting of two proposals that were ultimately passed by the state voting delegates to finalize the alignment of the Pasteurized Milk Ordinance (PMO) – which has regulated the production and processing of Grade “A” milk products since 1924 – with the Food Safety Modernization Act (FSMA) Final Rule for Preventive Controls for Human Foods. NMPF has been working since FSMA was approved in 2011 to bring both regulatory schemes into one harmonized program, as the FSMA law has led to the most significant change to U.S. food safety regulations in 70 years.

NMPF submitted several proposals that were passed by conference delegates to provide clarity for processors, dairy cooperatives and their farmer-members, including alleviating any confusion about the timing criteria for tanker washing and milk sample collection; increasing transparency around milk safety program equivalence in other countries; and updating the requirements for bulk milk transportation and the requirements for voluntary testing of milk for drug residues.

Conference delegates also approved a resolution submitted by NMPF to encourage participation in a new pilot program to screen the milk supply for tetracycline drugs.  Although not mandatory by industry or states, widespread participation in the program starting July 1 would assure any future changes in milk testing “can be based on the most representative and complete data available,” according to the resolution.

Briczinski noted that the dairy industry currently tests each tanker load of milk for the most commonly used farm antibiotics, beta-lactam drugs, and also carries out additional random testing for other classes of antibiotics, such as tetracycline. The new program “will help us fine tune the more than 3 million tests already being conducted each year to keep antibiotics out of the milk supply, and give us sound data on how to continue improving the screening process in the future,” she said.

NMPF also played a key role in opposing proposals that would have added an undue regulatory burden and unnecessary costs to dairy producers and the industry at large without enhancing food safety – such as adding requirements to the designs of milkhouses and milking equipment, and to the transportation of manufactured dairy products.

NMPF expressed gratitude for the involvement of its member cooperatives, processors, state dairy program regulators and FDA for their active participation during the conference.



Retail & Cellulosic Leaders join Growth Energy Push for Senate Action on E15 Fix

Growth Energy today urged the Senate Environment and Public Works Committee to quickly approve legislation that would extend the Reid Vapor Pressure (RVP) volatility waiver to gasoline blended with 15 percent ethanol (E15). The bill would allow retailers across the country to offer more biofuel choices to customers year-round. Growth Energy’s call to action was echoed by a growing alliance of companies representing both pioneers in advanced biofuels and major E15 retailers, including POET-DSM, Novozymes, Protec Fuel, and Kwik Trip. The Consumer and Fuel Retailer Choice Act has 18 bipartisan sponsors and was introduced in March by Sens. Deb Fischer (R-NE), Chuck Grassley (R-IA), John Thune (R-SD), and Joni Ernst (R-IA). Backed by Growth Energy and other allies, Senate champions have sought to bring the bill to a vote in next few weeks.

“This is a simple and long-overdue fix that will improve air quality, lower prices at the pump, and level the playing field for homegrown biofuels,” said Emily Skor, CEO of Growth Energy. “We’ve been working with champions in the House and Senate for three years to get this over the finish line so that local fuel retailers have the freedom to offer cleaner-burning, less expensive biofuel blends all year long. Consumer access to E15 will provide a vital market for continued investment in the next generation of cellulosic biofuels produced from agricultural waste and other natural materials.”

Jeff Pinkerman, Chairman of the POET-DSM Board, which oversees a cellulosic facility in Emmetsburg, Iowa said, “For cellulosic biofuel to be successful in the U.S., we must eliminate artificial regulatory barriers that limit consumer choices and hinder the acceleration of new technologies. The Reid Vapor Pressure limits on E15 stifle market competition and undermine our efforts to bring lower carbon fuels to drivers everywhere. Congress needs to make this technical correction and allow consumers year-round access to higher performing and cooler burning biofuels.”

The proposal has broad, bipartisan support in both the House and Senate, in part because the current restrictions force many convenience stores to switch to less environmentally-friendly fuel options during the summer months, from June 1 to September 15, and discourage many retailers from offering higher biofuel blends altogether. According to the Environmental and Energy Study Institute (EESI), E15 can help to “reduce harmful volatile organic compound (VOC) emissions, displace cancer causing emissions, and reduce smog forming potential, as well as cutting greenhouse gases … E15 is also typically two to 10 cents cheaper per gallon than E10.”

“Stability and consistency of policy and regulations are critical factors for the long-term planning of any business. They drive innovation and capital investments like the $36 million investment we just made in our manufacturing facility in Blair, Nebraska,” said Adam Monroe, President, Americas, Novozymes, a company with over a decade of experience developing enzyme technologies to convert agricultural waste into low-carbon cellulosic ethanol. "We see a legislative fix to RVP as the strongest signal to continue to spur business and jobs growth and put more money back in American pockets.”

Earlier this year, EPA Administrator Scott Pruitt also expressed his hope for a fix but acknowledged the need for greater certainly in the laws governing RVP, a key topic raised by Growth Energy in comments to the agency earlier this week. These efforts are also backed by several U.S. governors and widely supported by the nation’s top fuel retailers.

“There is no reason for the current RVP burden that blocks retailers, like us, from offering our customers less expensive, earth-friendlier fuel choices year-round,” said Steve Walk, COO of Protec Fuel. “The Consumer and Fuel Retailer Choice Act is a common-sense policy that lifts this decades-old rule to allow fuel retailers to offer E15 during the summer driving season and provide our customers a consistent option at the pump that contains higher octane for a lower price.”

“This long-overdue fix simply holds E15 to the same standard as conventional blends, which means more affordable options for our customers and fewer baseless restrictions on retailers,” said Joel Hirschboeck, General Manager of Fuel Procurement and Marketing of Kwik Trip. “We plan to add E15 at more than 500 locations in Iowa, Minnesota and Wisconsin over the next few years, and we want our customers to benefit from a full array of clean-burning choices all year long. For many drivers, E15 is a smart choice that can help cut costs while delivering more octane and fewer emissions.”



AgriLabs® Delivers Innovation with New Custom Vaccine Option for Swine

AgriLabs® today announced the introduction of a new innovative custom vaccine option for swine veterinarians and producers. AgriLabs custom vaccines combine the benefits of herd-specific autogenous vaccines with proprietary production processes and ENABL® adjuvant technology designed to improve vaccine performance.

"The custom vaccine market has seen little innovation in recent years despite a growing number of companies," says Sean O'Hare, executive vice president of AgriLabs. "Our technological advancements allow us to deliver a custom vaccine option that is truly different from – and better designed to evolve with your health management practices than – others in the market."

O'Hare says proprietary production processes will help AgriLabs produce custom vaccines from particular strains of certain swine diseases, such as PRRS, that have evolved to become harder for other custom vaccine manufacturers to grow. "Making custom vaccines for hard-to-grow virus strains has become a particular challenge in the industry, and our scientists have developed novel techniques to address that challenge," O'Hare says.

In addition, O'Hare says the company's recently patented ENABL adjuvant technology will be a key differentiator.

"ENABL novel adjuvants feature a patented lipid/polymer matrix to which antigens attach for efficient delivery to target cells," says O'Hare. "That means higher absorption of antigen to immune cells. The result is a greater immune response – and a custom vaccine offering unlike any other."

Because it's a nanoparticle, ENABL has the benefit of dispersing the vaccine rapidly from the injection site to activate the immune system. This rapid processing in injection sites differs from many traditional adjuvants that can be associated with lingering vaccine mass at the injection site, and with local inflammation and longer pre-slaughter withholding requirements.

AgriLabs custom vaccines can include bacterins, viruses or a combination of both. They are also easy to use, O'Hare says. They feature superior syringeability, as well as a 21-day withdrawal period – the lowest allowed for food animals.

"The ENABL technology and other innovations AgriLabs is introducing make custom vaccines even more attractive to the swine industry – and give the industry even more viable options for reducing the use of antibiotics," O'Hare says.

Commitment to Custom Vaccines
AgriLabs' commitment to custom vaccines includes the construction of a new state-of-the-art vaccine production facility in Lincoln, Nebraska. In addition, AgriLabs has added a cutting-edge diagnostic lab with new capabilities for disease identification and sequencing for herd-specific vaccine production.

"We are proud of the team we've assembled to support the swine industry's custom vaccine needs," O'Hare says. "From diagnostics to production to technical sales support, our team knows the challenges of an evolving swine industry. We are ready to apply our deep experience to address the industry's herd-specific disease issues."