Thursday June 22 Ag News

Smith Questions U.S. Trade Representative Lighthizer on Agriculture Trade Priorities

Congressman Adrian Smith (R-NE) questioned U.S. Trade Representative Robert Lighthizer on agriculture trade priorities in today’s Ways and Means Committee hearing on President Trump’s trade agenda.  Smith focused on China’s approval of U.S. biotechnology products, but he also stressed the importance of NAFTA as well as duty-free treatment of travel goods under the Generalized System of Preferences (GSP).

Transcript

Congressman Smith
Thank you, Mr. Chairman, and thank you, Ambassador, for your service and for sharing your time here today.  I certainly want to associate my comments and concerns with those of my colleagues who have raised the issue of NAFTA and agriculture, and the progress that has been made with NAFTA.  I know producers across rural Nebraska certainly appreciate the gains that have been made, and I think you’ve heard from us numerous times – they call us the agriculture delegation here on the committee – on how important these issues are, that we not undermine the successes NAFTA has brought to U.S. agriculture.

Shifting gears just a bit, thank you for the work you, the President, and others in the administration have done pressing China on a number of trade issues.  This isn’t just a market access issue for the biotech firms.  The lack of approval for these products also forces U.S. producers to choose between using the most current seed varieties or continuing access to China’s 1.3 billion consumers.  It’s obviously a big deal.  As agreed to under the U.S.-China 100-day plan, China’s National Biosafety Committee (NBC) recently met to review approval petitions for eight U.S. biotech products which have seen their approval for the Chinese market delayed by an average of five years, pretty astonishing.  Following the NBC meeting, the Chinese Ministry of Agriculture approved only two of the eight pending products.  Approval of only two of these eight products is disappointing, and I am concerned China will not honor the spirit of the 100-day plan and approve the remaining six products.  I understand the NBC is set to meet again by the end of June, giving us opportunity to have the other six products approved.  What is USTR doing to ensure China follows through and approves the remaining six products before the conclusion of the 100-day plan?

Ambassador Lighthizer
Thank you, Congressman.  First of all, I would say that there was some progress made in the 100-day plan, as you suggest, and this is one of the principal areas where there was progress.  We are continuing to press China.  We expect and will require that they, after they follow their process, very quickly approve all eight applications.  This is important not just because of those [applications] but because it actually delays U.S. farmers from implementing a lot of these high-tech techniques in the domestic market as well as internationally.  So I can assure you Secretary Ross, who is very focused on this, is making it very clear that this has to be done.  We’ve been in contact with the Chinese as recently as the last couple days on this, and my feeling is before long we’re going to have all eight of them agreed to.  That’s what we expect, that’s what we think was agreed to, and the Secretary, as I say, who actually had that negotiation at that time is very focused on it.

Congressman Smith
Thank you.  I know there is great opportunity in being good stewards of our natural resources with biotechnology.  We’ve got a great story to tell with how far we’ve come utilizing biotechnology, and I think it is very promising for the future.

I was pleased to see the President’s budget did include renewal of the GSP program, and this is very important.  More specifically, the recent GSP reauthorization included language to allow consideration for duty-free access for a variety of travel goods.  The previous administration did not provide this consideration for travel goods from all eligible countries as intended by the law and instead only provided it to the least developed and AGOA nations.  I appreciated Ambassador Froman’s deferring that expansion to the current administration.  Could you give us an update on that effort on GSP and travel goods?

Ambassador Lighthizer
Yes, well, I don’t actually appreciate him deferring it – I say that just in jest.  We are in the process of looking at it right now.  We’re very close – the documents are in front of me – and I think you’ll see an outcome very soon.  My guess is you won’t be disappointed.

Congressman Smith
Okay, thank you again, Ambassador, and thank you, Mr. Chairman.



Farmers Encouraged to Vote in IA Corn Checkoff Elections

The Iowa Corn Promotion Board (ICPB) will hold elections in Crop Reporting Districts 1, 3, 6 and 9 on July 18. Iowa corn farmers elect their peers to serve on the ICPB to oversee the investment of funds generated by the Iowa corn checkoff. The Board's primary activities include domestic and foreign market development, research into new and value-added corn uses, and education about the corn industry.

Crop Reporting Districts 1, 3, 6 and 9 can vote at their local county ISU extension office for their representation on the ICPB for a 3-year term. Anyone who has produced and marketed 250 bushels of corn or more in Iowa in the previous marketing year is eligible to vote in the election.

Producers unable to visit the extension office on July 18 may vote by absentee ballot. Absentee ballots are available by request until June 26 by contacting the Iowa Corn office at 515-225-9242 or at iowacorn.org.

Absentee ballots must be postmarked or returned to the Iowa Corn Office no later than July 18. Results of the election will be made public on July 21.

Candidates are as follows:
Crop Reporting District #1 - Counties: Buena Vista, Clay, Cherokee, Dickinson, Emmet, Lyon, O'Brien, Osceola, Palo Alto, Plymouth, Pocahontas, Sioux
- Kelly Nieuwenhuis, O'Brien County
- John Schott, Pocahontas County

Crop Reporting District #3 - Counties: Allamakee, Black Hawk, Bremer, Buchanan, Chickasaw, Clayton, Delaware, Dubuque, Fayette, Howard and Winneshiek
- Greg Alber, Buchanan County
- Ryan Oberbroeckling, Clayton County

Crop Reporting District #6 - Counties: Benton, Cedar, Clinton, Iowa, Jackson, Jones, Johnson, Linn, Muscatine and Scott
- Pete Brecht, Linn County
- Daron Oberbroeckling, Scott County

Crop Reporting District #9 - Counties: Davis, Des Moines, Henry, Jefferson, Keokuk, Louisa, Lee, Mahaska, Van Buren, Wapello, and Washington
- Heath Greiner, Davis County
- Stan Nelson, Des Moines County



Comfortable Cattle Provide Better Quality Beef, More Profit

Attendees at a recent cattle stewardship conference in northwest Iowa heard a common, simple message from speakers that when taken to heart can improve a farm’s economic bottom line: comfortable cattle perform better and consequently, are more profitable.

Temple Grandin, nationally noted animal behavior specialist and professor of animal science at Colorado State University, pointed out how small changes in cattle handling systems can dramatically improve the flow of cattle through a chute system.

“Cattle don’t like shadows and, just like people, remember a bad experience,” she said. “It’s important to reward the cattle and build their confidence.”

Dean Fish, certified trainer for the National Cattlemen’s Beef Association, told the more than 140 participants that working cattle slowly is actually working cattle quickly. In other words, excited cattle take longer to move, sort and load. As part of his presentation, Fish demonstrated that cattle have a point of balance, and knowing that is key to understanding whether the animal will move forward, stop or turn.

Program organizer Beth Doran said cattle well-being was a major focus of the conference, with six breakout sessions featuring separate topics: dealing with pain management, designing comfortable cattle facilities, low-stress weaning, processing cattle, managing heat stress and performing a feedlot assessment.

“Cattle producers are involved in a number of practices ranging from weaning and vaccinating to providing daily care and dealing with day-to-day climate change,” Doran said. “When animal handling is performed correctly and using good stewardship, potential stress on both the animal and the producer is greatly reduced.”

Doran, who also is Iowa State University Extension and Outreach beef specialist in northwest Iowa, pointed out that comfortable, stress-free cattle result in beef that’s more tender and juicy, important qualities for consumer satisfaction.

This conference was organized by the Iowa Beef Center, Iowa State University Extension and Outreach, Iowa Beef Industry Council, Iowa Lakes Community College, and Iowa Cattlemen’s Association with local support. Participants met the requirements to become Beef Quality Assurance certified.

More information concerning cattle well-being and stewardship can be accessed from the IBC website at www.iowabeefcenter.org or by contacting a regional ISU Extension and Outreach beef program specialist.



Record High Total Red Meat and Pork Production for May

Commercial red meat production for the United States totaled 4.28 billion pounds in May, up 7 percent from the 4.00 billion pounds produced in May 2016.

Beef production, at 2.16 billion pounds, was 6 percent above the previous year. Cattle slaughter totaled 2.75 million head, up 9 percent from May 2016. The average live weight was down 26 pounds from the previous year, at 1,307 pounds.

Veal production totaled 6.3 million pounds, 6 percent above May a year ago. Calf slaughter totaled 39,300 head, up 11 percent from May 2016. The average live weight was down 11 pounds from last year, at 276 pounds.

Pork production totaled 2.10 billion pounds, up 8 percent from the previous year. Hog slaughter totaled 9.95 million head, up 8 percent from May 2016. The average live weight was down 1 pound from the previous year, at 282 pounds.

Lamb and mutton production, at 11.8 million pounds, was down 9 percent from May 2016. Sheep slaughter totaled 180,300 head, 3 percent below last year. The average live weight was 131 pounds, down 9 pounds from May a year ago.

By State     (mill lbs. -  % of May '16)
Nebraska ......:     680.4      -      106      
Iowa .............:     588.3      -      109      
Kansas ..........:     447.2      -      101      

January to May 2017 commercial red meat production was 21.0 billion pounds, up 4 percent from 2016. Accumulated beef production was up 5 percent from last year, veal was down 2 percent, pork was up 3 percent from last year, and lamb and mutton production was down 5 percent.



USDA Halting Import of Fresh Brazilian Beef

U.S. Secretary of Agriculture Sonny Perdue today announced the suspension of all imports of fresh beef from Brazil because of recurring concerns about the safety of the products intended for the American market.  The suspension of shipments will remain in place until the Brazilian Ministry of Agriculture takes corrective action which the USDA finds satisfactory.

Since March, USDA’s Food Safety and Inspection Service (FSIS) has been inspecting 100 percent of all meat products arriving in the United States from Brazil.  FSIS has refused entry to 11 percent of Brazilian fresh beef products.   That figure is substantially higher than the rejection rate of one percent of shipments from the rest of the world.  Since implementation of the increased inspection, FSIS has refused entry to 106 lots (approximately 1.9 million pounds) of Brazilian beef products due to public health concerns, sanitary conditions, and animal health issues. It is important to note that none of the rejected lots made it into the U.S. market.

The Brazilian government had pledged to address those concerns, including by self-suspending five facilities from shipping beef to the United States.  Today’s action to suspend all fresh beef shipments from Brazil supersedes the self-suspension.

Secretary Perdue issued the following statement:
“Ensuring the safety of our nation’s food supply is one of our critical missions, and it’s one we undertake with great seriousness.  Although international trade is an important part of what we do at USDA, and Brazil has long been one of our partners, my first priority is to protect American consumers. That’s what we’ve done by halting the import of Brazilian fresh beef.  I commend the work of USDA’s Food Safety and Inspection Service for painstakingly safeguarding the food we serve our families.”



Soy Growers Support Giancarlo for Chairman of CFTC

Soy growers expressed their support for Chris Giancarlo as chairman of the Commodity Futures Trading Commission (CFTC).

The American Soybean Association (ASA), along with other ag organizations, sent a letter to Senate Ag Committee Chairman Pat Roberts and Ranking Member Debbie Stabenow earlier this week, urging Giancarlo’s confirmation.

“Given his financial industry background, we commend CFTC Acting Chairman Giancarlo for the considerable amount of time and effort he has devoted to understanding the agriculture sector and its use of the derivatives markets,” the groups state in the letter. “In fact, Mr. Giancarlo has visited a number of our members’ farms and facilities over the past few years to learn about the industry first-hand from those who are actual commodity producers and market participants.”

The groups wrote that Giancarlo would strike the right balance in overseeing CFTC’s financial and commodity markets regulation.



USDA Cold Storage May 2017 Highlights

Total red meat supplies in freezers on May 31, 2017 were down 5 percent from the previous month and down 7 percent from last year. Total pounds of beef in freezers were down 10 percent from the previous month and down 11 percent from last year. Frozen pork supplies were down slightly from the previous month and down 4 percent from last year. Stocks of pork bellies were down 6 percent from last month and down 59 percent from last year.

Total frozen poultry supplies on May 31, 2017 were up 4 percent from the previous month and up 4 percent from a year ago. Total stocks of chicken were down 1 percent from the previous month and down 3 percent from last year. Total pounds of turkey in freezers were up 13 percent from last month and up 17 percent from May 31, 2016.

Total natural cheese stocks in refrigerated warehouses on May 31, 2017 were up 1 percent from the previous month and up 7 percent from May 31, 2016. Butter stocks were up 7 percent from last month but down 3 percent from a year ago.

Total frozen fruit stocks were down 5 percent from last month but up 13 percent from a year ago.  Total frozen vegetable stocks were down 8 percent from last month but up 2 percent from a year ago.



Building A Billion Gallon Market For Ethanol In Mexico

Increasing U.S. ethanol exports requires building new markets from square one with industry partners and government regulators. This market development work, undertaken by the U.S. Grains Council (USGC) and partners including Growth Energy, the Renewable Fuels Association and the USDA's Foreign Agricultural Service (FAS), requires time and persistence to achieve huge potential payoffs.

An illustration of this is a recent regulatory change in Mexico, which now represents a potential ethanol market of 720 million gallons, the equivalent of 5.41 million metric tons of corn (168.42 million bushels).

On June 15, the Mexican Energy Regulatory Commission, known as the CRE, announced an increase to the maximum amount of ethanol that can be blended in Mexican gas supplies from 5.8 percent to 10 percent, except in the cities of Monterrey, Guadalajara and Mexico City.

The announcement modifies the Mexican Official Standard NOM 016-CRE-2016 regarding the quality specifications for fuels by increasing the maximum volume content of anhydrous ethanol as an oxygenate in regular and premium gasoline in Mexico.

“This regulatory change in Mexico is a huge win for building demand and sets up the market nicely for U.S. ethanol sales,” said Chip Councell, USGC chairman and a grain farmer from Maryland. “However, this effort will not automatically or immediately lead to sales. This win is a step along the way and will be followed up by continued, intense market development work by the Council.”

The Council has strategically focused its promotion of ethanol as the fuel component of choice for a more environmentally-friendly Mexican gasoline that helps reduce greenhouse gas pollution. Those efforts started to see real results in 2016 as the Mexican government began privatizing the petroleum market for gasoline and diesel imports.

The Council established a team of recognized scientists that made multiple trips to Mexico to meet with decision makers and educate them on the environmental benefits of ethanol blending. Together with the U.S. Department of Agriculture (USDA) and domestic partners, the Council assisted with two missions to Mexico to find the facts of how and where information was needed and to conduct a technical workshop on the benefits of fuel ethanol use.

The first fuel regulation in Mexico to allow ethanol blending took effect on Aug. 29, 2016, allowing 5.8 percent blending by volume outside of the same three major cities. The Council holds a seat on the technical working committee formed after the passage of this regulation, which is tasked with implementation and possible revisions.

Last week’s announcement is another positive result of this market development work, but the regulatory change is not the last step needed before U.S. ethanol flows freely into Mexico. For example, the infrastructure necessary to meet the volume of demand that could be in store does not currently exist, which creates a new area of work for the Council, its partners and local industry.

In addition, expanding this new regulation to include the three largest cities represents even more untapped potential in the market. Ethanol potential for E10 for these three markets is projected at an additional 480 million gallons, the equivalent of 4.28 million tons (168.42 million bushels).

Combined with the rest of the country, Mexico could represent a 1.2 billion gallon market for ethanol, the equivalent of 10.69 million tons (421.05 million bushels). Because of this enormous potential, the Council will continue its vigilant efforts in Mexico to help both build and capture new ethanol demand. 




Trade and Geopolitical Changes Under Spotlight at International Oilseed Gathering

They may be competitors on the world stage, but oilseed producers from across the globe will meet in Sydney next week to discuss trade issues borne out of a number of key geopolitical changes, including international leadership and Brexit, experienced over the last 12 months.

American Soybean Association (ASA) CEO Steve Censky, ASA President Ron Moore and United Soybean Board’s (USB) John Motter, along with U.S. Soybean Export Council (USSEC) representatives Jim Sutter, Roz Leek and ASA Director Jim Miller (Belden, NE), will attend the event.

The Oilseed Producer’s Dialogue (IOPD), will draw producers from Australia, Europe and South and North America to Sydney with the key aim of promoting collaboration across common interests and objectives. It will be held in Sydney June 26-27 before heading on-farm in Central West New South Wales later in the week.

The event will be hosted by the Australian Oilseeds Federation (AOF), the peak industry body for Australian oilseeds, and Executive Director Nick Goddard is looking forward to showing off Sydney and local farming systems.

“Trade will certainly be a hot topic at this year’s meeting, following the collapse of the Trans-Pacific Partnership, uncertainty around what Brexit might mean for trade in Britain and Europe, and new leadership in the US, France and UK,” Goddard said.

“Biotechnology, and growing pressure from some importing countries around residues, also have the potential to impact trade and will be discussed at length

“Another issue at the forefront of the dialogue will be increasing restrictions by some countries on the way oilseed producers operate, particularly in relation to the use of  critical farm chemicals.

“It’s important for us to see what is happening globally with farmers and the limitations being put on farming practices, to look at the big picture of the global oilseed business.

“It really highlights that we all have the same goals, and it helps us to find ways to work together to achieve these goals.”

The IOPD was established in 1998 to develop and promote a sound business environment to allow oilseed producers to remain viable for current and future generations. Members support trade liberalisation, and science-based systems for both Maximum Residue Limits (MRL) and sustainable technologies, including biotechnology.

The sessions in Sydney will include presentations from each participating country, and discussions on global markets, international trade, research and development, chemical residues, and new breeding techniques.

Delegates will then head to Parkes, Forbes, Eugowra and Orange for two days, where they will visit several farms, saleyards, crushing plants and other sights.



Corn Insect Bt Technologies Offer Cost-effective, Proactive Protection

When farm economics are challenging, farmers look for ways to bolster profit margins, including reducing input costs. Some may think about planting non-Bt corn, but farmers should consider reasons Bt trait technology is not the place to cut.

Not only are Bt technologies one of the best proactive ways to protect corn yield, but the costs of managing an insect outbreak in corn without Bt protection can be greater than expected.

Farmers should account for all the costs of managing an in-season pest outbreak and ask themselves: Is it worth the risk of planting non-Bt corn?

“Planting corn without Bt technology may seem like a good decision on paper, but farmers should consider what that could mean for their operation during the season,” says Brad Hopkins, Dow AgroSciences biology team leader, global seed treatments and North America insect resistant traits. “Every year brings unique challenges, and Bt technology offers cost-effective yield protection if insect outbreaks occur.”

Hopkins says it is important for farmers to assess potential insect pressure and choose the appropriate Bt trait technology for their acres. In areas with a history of corn rootworm pressure, cutting back on below-ground protection can have substantial impact on yield. Even if corn rootworm is not a major concern, farmers should carefully weigh the impact of cutting above-ground Bt protection.

Planting non-Bt corn, or choosing less-than-adequate protection, comes with potential costs not included in the seed purchase. For example, non-Bt corn requires more time to scout and closely monitor pest infestations. If populations reach threshold levels, insecticide applications mean additional inputs and time in the field. And once corn rootworm infestations develop in fields without below-ground Bt protection, decreased yield potential is a substantial risk.

Those are a few reasons why entomologists like Hopkins still recommend Bt trait technologies as excellent tools for protecting corn yield.

“Bt trait technology is a simple way farmers can get season-long protection against many of the primary insect pests in corn,” Hopkins says. “For the last three seasons, adoption of Bt trait technologies among corn growers has been around 80 percent, which speaks to the effectiveness and efficiency of these technologies.”

Hopkins says insect damage can quickly erode yield. An infestation of corn earworm can reduce yield by as much as 5 percent to 7 percent. Although their numbers have been greatly reduced due to broad adoption of Bt corn, European corn borer can still be common in areas where growers are planting non-Bt corn. Depending on the corn growth stage, a European corn borer infestation could mean a yield loss of 8.3 bushels per acre. According to Extension, if corn is priced at $3.40/bu. with average yield at 180 bu./A, Bt trait technology can provide nearly $78/A of yield protection against European corn borer.

PowerCore®, SmartStax® trait technologies give farmers better solutions
Dow AgroSciences offers a choice for corn Bt trait technology so farmers can plant the right technology on the right acre.

New for 2017, PowerCore® trait technology is a pyramid of three Bt traits that combines three proteins for the broad-spectrum control of above-ground insects in corn. PowerCore is a great choice for farmers with low corn rootworm pressure. Iowa farmer Bob Henderson used PowerCore trait technology during the stewarded launch, and he says it provides the protection he needs against above-ground pests.

“PowerCore trait technology gives us peace of mind so that we don’t have to worry about black cutworms, corn borers or corn earworms,” Henderson says. “All those insects can take a bushel here or two bushels there, but PowerCore alleviates us from having to worry about the above-ground insect pests that attack corn during the season.”

SmartStax® trait technology offers industry-leading protection of above- and below-ground insects, especially for those who have corn rootworm pressure on their farms.

“Dow AgroSciences has been a leader in the corn insect traits market beginning with the Herculex family of traits and then SmartStax trait technology,” Hopkins says. “With the introduction of PowerCore in addition to SmartStax, farmers now have a choice from Dow AgroSciences to plant the right corn Bt trait technology for their farms, depending on field history and agronomic conditions.”

PowerCore and SmartStax are available in the latest germplasm for greater yield potential. Both technologies are available for 2018 planting stacked with the Enlist™ corn trait, and growers can begin ordering PowerCore Enlist hybrids and SmartStax Enlist hybrids from Dow AgroSciences seed companies later this summer.

Dow AgroSciences plans to expand its corn insect trait technology portfolio in the future with SmartStax® PRO, which builds on SmartStax by incorporating RNA interference (RNAi) technology, an additional and new mode of action to protect against corn rootworm. SmartStax PRO is currently in the Dow AgroSciences breeding and development program, with an expected launch by the end of the decade.