Tuesday June 27 Ag News

Growing and Grazing Cover Crops conference is Aug 9 in Lincoln, NE

Nebraska Extension, Lancaster County Farm Bureau,  Nebraska Corn Board, and North Central SARE have teamed up to provide a unique learning and networking opportunity for potential cover crop growers and cattle operators.  The Opportunities for Growing and Grazing Cover Crops conference will be held on August 9th at the Lancaster Event Center in Lincoln, NE and will focus on bringing farmers and ranchers together to discuss partnerships and best management strategies.

There are many challenges and opportunities with cover crops, but utilizing cattle to graze cover crops may provide a benefit to both farmers and cattle owners.

“Using cattle to graze cover crops is a way to capture extra income while also gaining some environmental benefits”, said Mary Drewnoski, UNL Beef Systems Specialist.

Many events are held throughout the year to help farmers properly select and grow cover crops, but very few connect the farmers and the ranchers at one event.  “Cover crops can be a way for both livestock producers and grain producers to improve soil health and increase their income”, said Rod Hollman, President of Lancaster County Farm Bureau. “Cover crops can provide extra feed for livestock allowing producers to increase the size of their herds.”

The event will be held on Wednesday, August 9th in the Exhibit Hall at the Lancaster Event Center as a part of the Lancaster County Superfair.  The event will start at 11:00 am with a welcome and lunch, and will conclude at 5:30 pm following a tradeshow and networking session.  A reception will follow the event sponsored by Polansky Seed.

Pre-registration is required by August 4th.  More information and registration for the conference can be found at http://lancaster.unl.edu/ag/covercrops or by calling 402-441-7180.  There will be many activities going on at the fair for the whole family and you can view the entire fair schedule at http://www.lancastereventcenter.org/super-fair-home.



Ibach will Celebrate Arrival of Nebraska Beef in China

Today, Governor Pete Ricketts announced that Nebraska Department of Agriculture (NDA) Director Greg Ibach will be in Beijing and Shanghai June 29-30, 2017 to celebrate the arrival of Nebraska beef into China for the first time in 14 years.

“We are working to ensure that Nebraska beef will be well represented in the Chinese marketplace,” said Governor Ricketts.  “Nebraska is home to 4 of the 6 eligible suppliers that are currently approved to ship beef to China.  Nebraska stands to benefit greatly by capturing a share of China’s beef import market which was estimated to be $2.5 billion in 2016.”

While in Beijing, Ibach will participate in a variety of promotional events along with U.S. Secretary of Agriculture Sonny Perdue, U.S. Ambassador to China Terry Branstad, staff from the U.S. Meat Export Federation (USMEF), representatives from approved Nebraska plants and the leadership from the U.S. beef community.

During the trip, Ibach will also be meeting with key Chinese importers of beef along with representatives of businesses and establishments that have expressed interest in learning more about Nebraska beef products and the story of the Nebraska beef at several events organized by USDA and USMEF.

“Nebraska leads the nation in beef exports and commercial red meat production, and China is the second largest importer of beef in the world,” said NDA Director Greg Ibach.  “We feel it is important to make sure importers and consumers hear the Nebraska beef story early and often as we work to capture market share in China.”



GRAZING TRAMPLED GRASS
Bruce Anderson, NE Extension Forage Specialist

               How should you graze regrowth in pastures that had tall growth trampled during a previous grazing?  I don’t know but I have some ideas.

               Grass growth of cool-season grasses like smooth bromegrass has been phenomenal in many parts of Nebraska this spring.  For some reason the rainfall and temperatures and sunshine all combined to produce an abundance of tall grass.

               As good as this sounds, when it came time to graze this tall grass much of it got trampled rather than eaten.  As we come back to graze those pastures a second time, there is a combination of new regrowth, tall stemmy grass, dead and brown trampled grass, and partly pushed over but still green old grass.  How should that mess be handled?

               Animals turned into these pastures with enough time and space will wander around grazing just the regrowth.  And when that’s all gone they’ll stand around and beller to be moved to fresh pasture.  That may be fine if you have plenty of pasture, but there are other options.

               One option that I’m kind of fond of is to increase stock density.  In other words, only give the herd part of the pasture at a time.  This requires some temporary cross fencing as well as planning regarding water access, but it can be well worth it.

               If you increase stock density so your animals have access to about one day’s worth of grazing at a time, grazing and manure distribution will be more uniform, animals will eat more of the less desirable older forage so carrying capacity will increase, and grass that was trampled previously will be better incorporated into the soil for faster recycling and soil improvement.

               Obviously, either option is acceptable.  But if you want to extend grazing and improve conditions for next time, putting a little extra management into the grazing will pay off in the long run.



NDA Invites 4-H, FFA Members to Enter Poultry Calendar Photo Contest

The Nebraska Department of Agriculture (NDA) is inviting 4-H and FFA youth to participate in their annual Poultry Calendar Photo Contest. The contest highlights the state’s diverse poultry population and raises awareness of biosecurity measures for poultry owners. The deadline to enter is July 15, 2017.

“With the building of a new chicken processing plant in Fremont, a turkey hatchery in Beatrice and a chicken hatchery in Grand Island, it’s exciting to see how the poultry industry is expanding in Nebraska,” said NDA Director Greg Ibach.  “This contest gives 4-H and FFA students the opportunity to promote and support the state’s expanding poultry industry by taking photos of the wide variety of poultry found in our state.”

Winners of NDA’s Poultry Calendar Photo Contest will be announced during the Nebraska State Fair in Grand Island. The photos will be featured in the 2018 NDA Poultry Biosecurity Calendar which will also include information on biosecurity measures owners can take to keep their flocks healthy and prevent the spread of diseases like avian influenza.

NDA staff members will judge the photo contest entries based on originality, composition and photographic skills. Contest rules and official entry forms are available online at www.nda.nebraska.gov.

Printing of the 2018 NDA Poultry Calendar is funded through a grant from the USDA Animal and Plant Health Inspection Service, Veterinary Service, Western Region. Calendars will be available at local University of Nebraska Extension offices.



4 WATER QUALITY DEMONSTRATION PROJECTS RECEIVE 2nd ROUND OF FUNDING TO SCALE UP EFFORTS

Iowa Secretary of Agriculture Bill Northey today announced that four successful watershed-based demonstration projects funded in 2014, and set to end this year, will receive a 2nd round of funding. The locally-led projects will build upon previous demonstration objectives and continue working towards accelerated implementation of practices that improve water quality.

“Extending these projects will allow us to build on the strong foundation that has been created in these watersheds and continue to learn more about the best ways to get water-quality-focused practices on the land.  These projects create a great opportunity for farmers to see practices up close and better understand how they might work on their own farm,” Northey said.

The projects receiving extensions are the Cedar Creek Partnership Project (Wapello County), Deep Creek Water Quality Initiative Project (Plymouth County), Lower Skunk Water Quality and Soil Health Initiative (Henry County), and the Walnut Creek Watershed Project (Montgomery County). More details about each of the projects can be found at https://www.cleanwateriowa.org/farm-1/.

These projects will receive a total of $1.88 million in additional funding through the Iowa Water Quality Initiative over the next three years. In addition to the state funds, these four projects will access approximately $4.1 million in matching funds to support water quality improvement efforts as well as other in-kind contributions.

These funds will allow the projects to focus on scaling up implementation of conservation practices identified in the Iowa Nutrient Reduction Strategy and continue to build on existing assessment and evaluation methods.  Also, an additional $200,000 has been allocated for these projects which will be targeted towards implementation of select priority nutrient reduction conservation practices including wetlands, saturated buffers and bioreactors.

These four projects will continue to build upon existing partnerships as well as expand efforts to include new partnerships developed during the first three years. Thirteen new partners have joined the existing 37 partners currently involved in these projects. Partners include agriculture organizations, institutions of higher education, private industry, the local, state and federal government, and others, all working together to move conservation based water quality efforts forward.

“These projects are hitting their stride in terms of engaging farmers, getting practices on the ground and coordinating with partners and stakeholders.  We have always understood that it would take a long-term commitment to improvement in these watersheds and I’m excited to continue to learn from these projects as we work to scale-up and expand water quality efforts across the state,” Northey said.

The Iowa Department of Agriculture and Land Stewardship also has been successful in securing additional federal resources for several of these projects through the USDA Natural Resources Conservation Service (NRCS) Regional Conservation Partnership Project (RCPP).  These funds, when paired with Iowa Water Quality Initiative and partner investments, do more than what any one group or organization can accomplish alone.



Fischer Welcomes Latest Step in WOTUS Withdrawal Process

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Committee on Environment and Public Works, today released the following statement after the Environmental Protection Agency (EPA) announced it is taking further action to undo the Waters of the United States (WOTUS) rule.

“Today’s announcement from the administration signals another important step toward full removal of the harmful WOTUS rule. All Nebraskans would have been affected by the far-reaching consequences of this misguided policy. I will continue to monitor the WOTUS withdrawal process to help ensure we see common-sense rulemaking that puts Nebraskans in charge of the decisions involving our state’s water resources.”

Today, the EPA announced that the Obama administration’s WOTUS rule was removed from the Code of Federal Regulations. Doing so opens a public comment period after which the agency will review and respond to substantive comments regarding the withdrawal of the rule. This announcement signifies that the EPA is following through on President Trump’s executive order to roll back the WOTUS rule completely.

Earlier this year, Senator Fischer and Senator Joni Ernst (R-Iowa) introduced a resolution that expressed the need to vacate the Obama administration’s WOTUS rule. The resolution signified the senators’ intent to continue working with the Trump administration to scrap the harmful rule altogether. She’s also sponsored other legislative proposals to stop the rule.

In March 2015, Senator Fischer chaired a field hearing of the Senate Environment and Public Works Committee in Lincoln, Nebraska, to hear firsthand from Nebraskans about the effects of WOTUS.



Sasse Statement on Move to Rescind WOTUS

U.S. Senator Ben Sasse released the following statement after the EPA, Department of Army, and Army Corps of Engineers announced a proposal to rescind the Obama-era WOTUS rule.

“WOTUS was a nightmare dreamed up by Washington’s bureaucrats. This is a major victory for farmers and ranchers across Nebraska — the very people who know and care the most about our water. We should all be thankful for this step towards reining in the Obama administration’s out-of-control EPA.”

In February, Senator Sasse sent a letter to EPA Administrator Pruitt requesting withdrawal from WOTUS.  Senator Sasse urged Administrator Pruitt to:

1. Withdraw the Waters of the United States Rule and Restore State and Local Control Over Non-Federal Environmental Protection.
2. Put a Stop to EPA Freelancing in Implementing the Renewable Fuels Standard.
3. Improve Coordination with Federal Agencies.
4. End Abusive “Sue and Settle” Practices.
5. Eliminate the EPA's “Clean Power Plan.”
6. Reduce Needlessly Costly Regulations.
7. Protect the Privacy of Farmers and Ranchers.
8. Collect Additional Information on Mining Rules.
9. Review Rule for the Nebraska Regional Haze Federal Implementation Plan.
10. Decentralize EPA Enforcement Actions.



Smith Applauds Plan to Repeal WOTUS

Congressman Adrian Smith (R-NE) released the following statement today after the Environmental Protection Agency (EPA) and Army Corps of Engineers released a proposal to repeal the Obama administration’s Waters of the U.S. rule, or WOTUS.

“WOTUS was one of the most flagrant abuses of regulatory power in modern history and threatened the future of agriculture,” Smith said.  “I was pleased to join President Trump at the White House in February when he signed the executive order directing the EPA and Army Corps of Engineers to go back to the drawing board on WOTUS.  Today’s repeal proposal is another important step toward certainty and relief for producers, landowners, and local communities.”

Smith introduced H.J. Res. 59, the House resolution utilizing the Congressional Review Act to block WOTUS, in July 2015.  In January 2016, both chambers of Congress passed the Senate companion to Smith’s resolution, which was vetoed by President Obama.



Rep. Bacon Statement on WOTUS Repeal

Rep. Don Bacon (NE-02) issued the following statement today following the repeal of the Waters of the United States (WOTUS) Rule:

“The Waters of the US Rule was the prime example of government overreach and resulted in costly compliance measures. It placed burdensome regulations on Nebraska’s farmers, ranchers, landowners, county governments and others that unnecessarily delayed infrastructure projects and conservation.  I am pleased that this cumbersome rule has been repealed. WOTUS was intended to regulate navigable waters; not puddles and irrigation ditches.”



Ricketts, Nebraska Ag & Business Groups Applaud WOTUS Repeal

Today, Governor Pete Ricketts and Nebraska agriculture and business groups applauded an announcement by Environmental Protection Agency (EPA) Administrator Scott Pruitt that the Trump Administration had finalized the repeal of the 2015 Waters of the U.S. (WOTUS) rule.

“Thank you to President Trump and Administrator Pruitt for delivering on your promise to roll back this job-killing regulation,” said Governor Ricketts.  “This policy returns federal oversight of intra-state waterways to pre-2015 standards, respects the rights of private land owners and states, and provides for ample protection of clean water.  Removing this threat to our state’s top industries gives Nebraska the freedom to grow more opportunities for the next generation in the areas of agriculture and manufacturing.”

“Today, countless farmers, ranchers, homebuilders, manufacturers, county governments, golf courses, and small businesses are loudly celebrating the demise of EPA’s proposed WOTUS rule,” said Steve Nelson of Axtell speaking on behalf of the Common Sense Nebraska coalition.  “For over two years, our coalition which represents the very industries who would have had to bear the brunt of this federal land grab, have worked tirelessly to stop this breathtaking assumption of authority by the federal government that flies in the face of Congressional intent, legal precedents, and even science.  We want to thank the Trump Administration and EPA Administrator Pruitt specifically for now going back to the drawing board to write a new rule that actually protects water without trampling the rights of businesses and state regulatory agencies.”

“I applaud the Trump Administration and Secretary Pruitt’s announcement to walk away from the previous administration’s WOTUS rule and begin the process to develop a new rule,” said Nebraska Department of Agriculture Director Greg Ibach.  “The expansive reach and inability to determine what water or land may fall under jurisdiction under the existing regulation puts Nebraska’s agriculture industry in jeopardy.  Our farmers and ranchers have proven to be thoughtful stewards of our land and resources, and jurisdiction of those resources should be the responsibility of the states.  I look forward to the development of a new rule, founded in common sense, that will support Nebraska’s ability to protect our water and land resources.”

About Common Sense Nebraska
Common Sense Nebraska is a diverse, Nebraska-based coalition consisting of organizations and entities that have united in response to the EPA’s “Waters of the U.S.” rule, a regulatory proposal that would harm both rural and urban Nebraskans through expansion of the EPA’s powers and authorities under the federal Clean Water Act.  The coalition’s purpose is to build awareness and understanding of the EPA proposal and the impacts it would have on Nebraskans.  For more information visit Common Sense Nebraska on Facebook.

Common Sense Nebraska Coalition members include:
AKSARBEN Club Managers Association
Association of General Contractors - NE Chapter
Farm Credit Services of America
Iowa-Nebraska Equipment Dealers Association
National Federation of Independent Businesses/Nebraska
Nebraska Agribusiness Association
Nebraska Association of County Officials
Nebraska Association of Resource Districts
Nebraska Bankers Association
Nebraska Cattlemen
Nebraska Chamber of Commerce and Industry
Nebraska Cooperative Council
Nebraska Corn Board
Nebraska Corn Growers Association
Nebraska Farm Bureau Federation
Nebraska Golf Course Superintendents Association
Nebraska Grain and Feed Association
Nebraska Grain Sorghum Association
Nebraska Grain Sorghum Board
Nebraska Pork Producers Association
Nebraska Poultry Industries
Nebraska Rural Electric Association
Nebraska Soybean Association
Nebraska State Dairy Association
Nebraska State Home Builders Association
Nebraska State Irrigation Association
Nebraska Water Resources Association
Nebraska Wheat Board
Nebraska Wheat Growers Association
Nemaha Natural Resources District
Pawnee County Rural Water District #1



EPA Proposes Rule To Repeal ‘WOTUS’

The National Pork Producers Council hailed today’s announcement by the U.S. Environmental Protection Agency that it will propose a rule to rescind a controversial Clean Water Act regulation that gave the government broad jurisdiction over land and water.

The proposal – expected to be published in the Federal Register in the coming days – will repeal the Waters of the United States (WOTUS) rule, which ostensibly was implemented to clarify EPA’s authority over various waters.

Based on several U.S. Supreme Court decisions, EPA’s jurisdiction had included “navigable” waters and waters with a significant hydrologic connection to navigable waters. But the WOTUS rule broadened that to include, among other water bodies, upstream waters and intermittent and ephemeral streams such as the kind farmers use for drainage and irrigation. It also covered lands adjacent to such waters.

“This is great news for America’s pork producers,” said NPPC President Ken Maschhoff, a pork producer from Carlyle, Ill. “The WOTUS rule was a dramatic government overreach and an unprecedented expansion of federal authority over private lands.

“It was the product of a flawed regulatory process that lacked transparency and likely would have been used by trial lawyers and environmental activists to attack farmers,” Maschhoff added. “We’re extremely grateful to President Trump and EPA Administrator [Scott] Pruitt for recognizing the dire consequences this ill-advised Obama-era regulation would have had on pork producers and all of American agriculture.”

NPPC helped lead the agricultural community’s opposition to the WOTUS rule, including producing maps showing the extent of the lands affected by the regulation. (EPA’s jurisdiction in Missouri, for example, would have increased to cover 77 percent of the state under the rule.) The organization also led the legal efforts against the rule, filing suit in a U.S. District Court and presenting a brief to a U.S. Court of Appeals. The latter halted implementation of the WOTUS rule shortly after its Aug. 28, 2015, effective date.

Once the proposed repeal rule is published, it will be subject to a public comment period.



NCGA Statement on WOTUS Repeal

The following is a statement from Texas farmer Wesley Spurlock, president of the National Corn Growers Association, in response to today’s announcement of the proposal to repeal the 2015 Waters of the U.S. (WOTUS) Rule:

“The goal of the Clean Water Act is to restore and maintain the integrity of the nation’s waters. The 2015 rule moved us further away from that goal. Repealing it is an important first step toward providing farmers the certainty and clarity we have long desired.

“We are thankful this Administration is working to draw clear lines in terms of what is and what is not jurisdictional under the Clean Water Act. In doing so, they will enable farmers to implement best management practices such as grass waterways and buffer strips without the burden of bureaucratic red tape or fear of legal action. These types of land improvements have enormous water quality benefits, such as reducing sediment and nutrient runoff—a win for farmers and the environment. Government should be making these actions easier, not more difficult.

“We salute the EPA and Army Corps of Engineers for their efforts. We stand committed to working with these agencies as they develop a new rule that defines jurisdictional boundaries in clear terms that are inclusive of the realities of farming.”

Earlier this year, President Trump issued Executive Order 13778, directing EPA and USACE to review the final 2015 WOTUS rule, and publish for notice and comment a proposed rule rescinding or revising the rule, as appropriate and consistent with law. Today’s announcement is the next step in that process.



Farm Bureau Applauds EPA Move to Ditch Flawed WOTUS Rule
Zippy Duvall, president, American Farm Bureau Federation

“Farmers and ranchers across this country are cheering EPA’s proposal today to ditch its flawed Waters of the U.S. rule. We know the importance of clean water, and farmers and ranchers work hard to protect our natural resources every day.

“But this rule was never really about clean water. It was a federal land grab designed to put a straightjacket on farming and private businesses across this nation. That’s why our federal courts blocked it from going into effect for the past two years. Today’s announcement shows EPA Administrator Pruitt recognizes the WOTUS rule for what it is—an illegal and dangerous mistake that needs to be corrected.

“Farm Bureau looks forward to supporting Administrator Pruitt’s proposal. EPA should ditch this rule once and for all, go back to the drawing board, and write a new rule that protects water quality without trampling the rights of businesses and the states.”



Inquisitive neighbors encouraged at soil health field days across Midwest

When it comes to caring for farmland and adopting the next generation of farming practices, there cannot be enough sharing. That’s the philosophy of the Soil Health Partnership, hosting its fourth year of field days this summer and fall within its network of more than 100 farms.

At the field days, Midwestern farmers can learn how changing nutrient management and tillage strategies, along with cover crop adoption, can make farmland more productive, efficient and sustainable.

Some events are open for registration in Iowa, Illinois, Indiana, Ohio and Nebraska. The organization plans about 70 field days throughout the summer and fall, with more events yet to be scheduled in those states, plus additional events in Missouri, Minnesota and Wisconsin.

“Whether you are brand new to the topics covered during a field walk, field day or round table discussion, or you are a seasoned soil health veteran, you can learn valuable information that will help your business,” said Nick Goeser, director of the Soil Health Partnership and National Corn Growers Association director of soil health and sustainability. “We know local information is most relevant to agronomists and other farmers, and this is a unique chance to learn from neighbors and other experts about what has worked in your area.”

Protecting and improving soil is one of the best opportunities for increased yield potential and water quality, erosion control and carbon mitigation, Goeser said.

The Soil Health Partnership is a data-driven program working to quantify the benefits of practices that support soil health, from an economic as well as environmental standpoint. An initiative of NCGA, the SHP works closely with diverse organizations including commodity groups, industry, foundations, federal agencies, universities and well-known environmental groups toward common goals.

For a list of field days, and to register, visit soilhealthpartnership.org. More dates will be added throughout the summer.



America’s Oldest and Largest Cattlemen’s Group Calls On NAFTA Negotiators to Preserve Market Access, “Do No Harm”

Kevin Kester, a fifth-generation California rancher and president-elect of the National Cattlemen’s Beef Association – the oldest and largest national association of cattlemen - today testified in support of the market access that the North American Free Trade Agreement (NAFTA) has delivered for America’s cattle producers, and warned against the re-adoption of failed policies that harmed the industry in the past.

“NCBA strongly supports NAFTA because the terms of NAFTA developed Canada and Mexico into two very important export markets for U.S. beef,” Kester testified at a hearing hosted by the Office of the U.S. Trade Representative. “Quite frankly, it is difficult to improve upon duty-free, unlimited access to Canada and Mexico—so please do no harm and do not jeopardize our access.”

Kester pointed out that Canada and Mexico have become two of the top five export markets for U.S. beef producers, accounting for approximately $1 billion each in annual sales. Kester also warned USTR’s NAFTA negotiators to beware protectionist calls to resurrect failed policies of the past, such as mandatory country-of-origin labeling, also known as COOL.

“COOL was U.S. law for over six years and failed to deliver on its promises to build consumer confidence and add value for our producers,” Kester pointed out. “Instead, COOL resulted in a long battle in the World Trade Organization with the United States facing the promise of $1 billion in retaliatory tariffs from Mexico and Canada unless COOL was repealed by Congress. Canada and Mexico still have the authority to retaliate against the United States if COOL is brought back into effect—and rest assured they will retaliate against us if necessary.”



Skunes Testifies on NAFTA at USTR Hearing

The North American Free Trade Agreement (NAFTA) is critical for corn farmers and agriculture at large, and continuing its long-term success is a top priority to our members, National Corn Growers Association First Vice President Kevin Skunes testified Tuesday at a hearing of the Office of the U.S. Trade Representative to examine priorities for the upcoming NAFTA renegotiations.

“North America has become the most important export market for the U.S. corn industry,” Skunes testified. “Corn farmers export about 20 percent of our annual corn crop, and exports account for about one-third of our income. Today, the agriculture economy is experiencing its fourth year of a downturn marked by low commodity prices. I cannot stress enough how important export markets are to our ability to stay in business.”

Skunes, a farmer from Arthur, North Dakota, highlighted how NAFTA has positively impacted U.S. agricultural trade with Canada and Mexico since its implementation in 1994.

“Free trade has benefitted American farmers, and NAFTA has been extremely valuable to our industry,” said Skunes. “Twenty-three years of investment has led to a sizeable increase in trade. Since 1994, U.S. corn exports to NAFTA partners have increased more than seven-fold. Today, we export a record volume of more than 14 million metric tons of corn to Mexico and Canada, valued at $2.68 billion. In 2016, corn exports to these two neighbors supported 25,000 jobs, on top of helping support 300,000 U.S. corn farmers.”

Mexico is the largest export market for U.S. corn as well as a significant market for distillers dried grains with solubles (DDGS). Canada is a top-10 export market for corn and DDGS, and the number one export market for U.S. ethanol.

NCGA’s top priority for NAFTA modernization is to preserve duty-free access for corn and corn products, and to expand market access for corn in all forms, including livestock products, DDGS, and ethanol, Skunes told government officials.

“We look forward to working with USTR and the Administration to build on the success corn farmers and the broader agriculture industry have enjoyed under NAFTA.”



USGC: NAFTA Modernization Efforts Should Seek to Ease Uncertainty For Customers, U.S. Farmers

Concerns about the future of the North American Free Trade Agreement (NAFTA) have disrupted relationships with longstanding customers of U.S. grains and caused significant concern in farm country, U.S. Grains Council (USGC) Chairman Chip Councell testified Tuesday to a panel of government officials examining priorities ahead of NAFTA renegotiation talks.

Councell, a farmer from the Eastern Shore of Maryland, spoke at the hearing to provide information and offer personal insights into the impact of NAFTA changes to the U.S. corn, sorghum and barley industries.

He told panelists he has been to Mexico twice this year and helped to host a team of Mexican grain buyers visiting the United States to talk with farmers and policy makers. Through those conversations, he learned firsthand that buyers’ concerns are translating into dollars lost in farm country.

"Because our agriculture economies have grown to be so closely intertwined, this trade agreement in particular is critical to my business. The last several months have highlighted how important it is to maintain this strong, stable relationship if we are going to continue to grow," Councell said.

Councell told panelists that the Council has "strong but unconfirmed evidence" Mexico will purchase corn from South America later this year, and that he himself took a futures position for his entire 2017 corn crop when withdrawal talk began, fearing what might happen to markets as the new crop approached.

"What is happening now in our relationship with Mexican buyers will change how the Mexican industry invests in infrastructure, impact our demand for years to come and impact individual producers like myself financially," he said.

Councell said that rising demand for feed and food has created new opportunities for grain and oilseed exports to Canada and Mexico over the past three decades, which have been tariff-free thanks to NAFTA. Proximity and natural logistical advantages have led to efficiencies and integration on both sides of the border and helped dramatically expand U.S. farmers' exports to Mexico, in particular.

With these successes in mind, Councell urged panelists to ensure negotiators make every effort to do no harm to existing markets and avoid retaliation against U.S. agriculture. He also outlined improvements the Council would suggest for the agreement, including elements drawn from the Trans-Pacific Partnership (TPP) text as well as updated sanitary and phytosanitary, biotechnology synchronization and energy provisions.

The U.S. Grains Council is a private, non-profit organization that works to build demand and develop markets for U.S. corn, sorghum, barley and related products including ethanol, distiller’s dried grains with solubles (DDGS), and corn gluten feed and meal.

The Council hosts programs in Canada and Mexico and has strong relationships with the feed and livestock industries in both countries.

Canada was the ninth largest export market for U.S. corn; the seventh largest export market for U.S. DDGS; and the top export market for U.S. ethanol in the 2015/2016 marketing year.

Mexico was the top export market for U.S. corn in the 2015/2016 marketing year and is a steady and significant buyer of U.S. barley, sorghum and DDGS. The Council has maintained an office in Mexico for 35 years, helping the Mexican feed and livestock industry develop through training, information exchange, technology transfer and market development.



U.S. Wheat Organizations Share Positions on NAFTA with USTR

Today, the National Association of Wheat Growers (NAWG) CEO Chandler Goule and U.S. Wheat Associates (USW) Director of Policy Ben Conner testified to the Office of the U.S. Trade Representative (USTR) on modernizing the North American Free Trade Agreement (NAFTA) with Canada and Mexico.

Since the Trump administration announced its intention to renegotiate NAFTA, the wheat industry has urged the government to not harm its trade relationships with Canada and Mexico.

“NAFTA has been one of the most advantageous trade agreements for wheat farmers in U.S. history,” said Goule. “By removing import tariffs, NAFTA has established a crucial market for wheat producers in Mexico.”

"U.S. Wheat Associates has been helping to facilitate the relationship between our farmers and their Mexican customers for over 45 years, but that relationship took off with NAFTA. It is a highly successful partnership that resulted in Mexico being our largest customer the past two years." Conner said.

“While Mexico is an important customer to the U.S. wheat grower, some improvements can be made that benefit the food and agriculture sectors in both countries,” continued Goule. “For instance, a new agreement should include the sanitary and phytosanitary (SPS) rules that the three countries already agreed to as part of the Trans-Pacific Partnership (TPP). The SPS provisions of TPP provided more tools to address problems.”

Conner also pressed for resolution of barriers that are a disincentive for U.S. wheat farmers to deliver wheat to nearby Canadian elevators.

"U.S. farmers should be able to deliver their wheat to a Canadian elevator and not automatically receive the lowest grade because it was grown on our side of the border. This is a no-brainer, and it is already Canada’s legal obligation under existing trade agreements."



International Dairy Groups Join U.S. in Calling for Action Against Unfair Canadian Trade Policies

An international coalition of 10 dairy industry organizations, including three U.S. dairy groups, is asking their governments’ trade ministers to intercede in the increasingly acrimonious dispute over Canada’s harmful dairy policies that is having global repercussions. The groups co-signed a joint letter today requesting that their respective trade ministries “pursue all avenues available to challenge these measures, including WTO dispute settlement and bilateral trade agreement relationships.”

The U.S. dairy sector, represented by the International Dairy Foods Association (IDFA), the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC), together with seven dairy groups from Argentina, Australia, the European Union, Mexico and New Zealand, is insisting that Canada remove the recently implemented policies that are facilitating the dumping of Canadian dairy products in the international market, while making already prohibitive Canadian restrictions on dairy imports even more onerous.

“IDFA will use every opportunity to urge administration officials and legislators who are working to modernize the North American Free Trade Agreement (NAFTA) to tackle these unfair, illegitimate and protectionist policies,” said Michael Dykes, D.V.M., IDFA president and CEO.

Jim Mulhern, NMPF president and CEO, said that “Canada’s revised dairy policy amounts to a ‘beggar-thy-neighbor’ approach, damaging not just its neighbor to the south, but also causing harm to other major dairy exporting countries around the world. This policy must stop now, before any more damage is done to American farmers and those from other nations seeking to compete on a level global playing field.”

“Canada has been adopting policies that run counter to our longstanding agreements and upending what has until recently been a mutually beneficial trade relationship,” said Tom Vilsack, president and CEO of the U.S. Dairy Export Council. “Our trade agreements must be honored and not ignored—or worse—by our closest neighbor.”

In February, Canada implemented a special milk Class 7 pricing policy that artificially lowers milk ingredient prices for Canadian processors and is designed to incentivize the substitution of domestic Canadian dairy ingredients for imported ingredients, while also pushing Canadian proteins out onto world markets at below-market prices. The result of this policy is the widely reported cancellation of purchases by Canadian cheese makers of U.S.-sourced ultra-filtered (UF) milk, and the even more damaging ability of Canadian exporters to sell milk proteins globally at a much lower price, thereby undercutting exports from the U.S. and the other countries. It is due to this latter impact that dairy groups in multiple countries have been expressing opposition to Canada’s new system.

The letter was sent to U.S. Trade Representative Robert Lighthizer, as well as to Argentina and Australia’s Ministers for Trade, Mexico’s Secretary of Economy, the EU Commissioner for Trade, and New Zealand’s Minister of Trade. In addition to the U.S. dairy leaders, the letter was signed by the CEOs of the European Association of Dairy Trade (Eucolait), European Whey Products Association (EWPA), European Dairy Association (eda), Dairy Companies Association of New Zealand (DCANZ), Camara Nacional De Industriales de la Leche (CANILEC), the Centro De La Industria Lechera (CIL), and the Australian Dairy Industry Council (ADIC).

“Our respective dairy industries are firmly of the view that the operation of Ontario’s Class 6 and Canada’s Class 7 contravene Canada’s international commitments,” the letter reads in part. “Canada's increasingly protectionist policies are diverting trade with attendant global price-depressing impacts, and are in conflict with the principles of free markets and fair and transparent trade. We therefore request the authorities of Argentina, Australia, the EU, Mexico, New Zealand, and the US to take all steps available to them to resolve this issue and ensure that Canada complies with its international obligations. “

Earlier this month, U.S. Secretary of Agriculture Sonny Perdue conducted a series of meetings with Canadian officials, raising the points of disagreement and reinforcing that these issues need to be resolved, particularly in light of the renegotiation of NAFTA.