Thursday July 13 Ag News

Ricketts Temporarily Waives Hauling Requirements

Today, Governor Pete Ricketts directed the Nebraska State Patrol to temporarily waive certain requirements for trucks traveling in and through Nebraska in support of efforts to aid citizens of North Dakota and South Dakota impacted by drought conditions.

“In light of the drought emergencies in North Dakota and South Dakota, the Governor has temporarily waived the length and weight requirements for trucks traveling in and through Nebraska in support of efforts to assist our neighbors,” said the Governor’s Chief of Staff Matt Miltenberger.  “There is likely to be an increased number of trucks carrying hay, and this temporary waiver will expedite efforts to provide assistance to victims.”

The directive is effective immediately until Wednesday, August 9th, 2017 at 11:59pm pending further notice from the Governor.

Other states, including North Dakota and South Dakota, have temporarily waived similar restrictions.  Both North Dakota and South Dakota have declared emergencies due to drought conditions.  Nebraska has a tradition of providing support to our neighbors, who support Nebraska when faced with similar conditions.

The Governor’s Office, Nebraska Department of Agriculture, and Nebraska Emergency Management Agency are monitoring conditions in Nebraska on a daily basis, and staying in touch with ag leadership to assess emerging needs.  State agencies stand ready to assist regions of Nebraska moving into severe drought conditions as needed. 



Ricketts Launches Council to Grow Nebraska through International Trade

Today, Governor Pete Ricketts, the Nebraska Department of Agriculture (NDA), and Nebraska Department of Economic Development (DED) launched the Governor’s Council for International Relations at the 2nd Annual Governor’s Summit on Economic Development.  This new council is bringing together Nebraska business, agriculture, and education groups to work together to expand overseas trade opportunities and develop new international partnerships for the state.

“International trade and engagement is a crucial part of our state’s long-term growth.  Whether it takes the form of beef exports, inbound foreign direct investment, or student and cultural exchanges, Nebraska’s relations overseas bring great benefit to the entire state,” said Governor Ricketts.  “My administration is continuously pursuing new strategies for expanding international markets, attracting new investment, and building the state’s profile overseas, and we are committed to maintaining a competitive edge in a global economy.  The Nebraska Governor’s Council for International Relations will help us take the next step to grow trade for Nebraska by leveraging our combined resources to grow current investments in Nebraska and explore prospects for future partnerships.”

At the event, the Governor outlined three goals for the council:
·       Develop comprehensive long-term strategies to expand existing and develop new trade relationships.
·       Support growing partnerships and identify new opportunities to collaborate with overseas counterparts.
·       Leverage our combined resources to grow current investments in Nebraska and explore prospects for future investment.

“In 2015, Nebraska exported $6.4 billion dollars’ worth of agricultural goods accounting for over 25 percent of all agricultural cash receipts,” said NDA Director Greg Ibach.  “The Governor’s International Trade Council will create synergies between agriculture’s efforts to promote trade, the University’s international outreach, and the business community’s interest in foreign direct investment.”

“This Council will be a critical resource as we work to develop Nebraska’s strategic efforts to foster international relationships and increase trade,” said DED Director Courtney Dentlinger.  “This dynamic group of leaders will help position us to better compete for increased investment in industries such as advanced manufacturing, biofuels, and value added agriculture.”

This group will be comprised of top-level leaders from organizations heavily involved in Nebraska’s international efforts.  Participating groups and individuals include:
·       BioNebraska
·       Greater Omaha Chamber of Commerce
·       Lincoln Chamber of Commerce
·       Midwest International Trade Association
·       Nebraska Cattlemen
·       Nebraska Chamber of Commerce and Industry
·       Nebraska Corn Growers Association
·       Nebraska Department of Agriculture
·       Nebraska Department of Economic Development
·       Nebraska Department of Education
·       Nebraska Diplomats
·       Nebraska District Export Council
·       Nebraska Ethanol Board
·       Nebraska Farm Bureau
·       Nebraska Pork Producers
·       Nebraska Secretary of State John Gale
·       Nebraska Soybean Board
·       Nebraska Tourism Commission
·       University of Nebraska
·       U.S. Commercial Service – Omaha

Additional individuals and groups have been invited to participate, and will be announced at a later date.

“Thank you to Governor Ricketts for stepping up and pulling together this new strategic initiative,” said Dr. Ronnie Green, University of Nebraska-Lincoln Chancellor.  “Global engagement has been helping Nebraska attract top-level talent and establish innovative partnerships for years.  This council presents an opportunity for Nebraska to come together and take a full-spectrum, long-term view of our international efforts as a state that are so critical to growing in a global world.”

“Trade is critical to the well-being of Nebraska agriculture and will continue to grow in its importance into the future,” said Steve Nelson, Nebraska Farm Bureau President.  “Today, Nebraska farm and ranch families rely on international trade for 30 percent of their overall income.  We are excited about the opportunity to work with Governor Ricketts and others to continue our efforts to move Nebraska agriculture commodities and Nebraska products into new markets.”

"Trade is highly important to Nebraska’s agricultural industry,” said Troy Stowater, Nebraska Cattlemen President.  “The beef industry has recently had tremendous success with international trade and we are extremely proud to see Nebraska high on the charts for exports.  We applaud the Governor for making trade such a high priority.”

“I want to thank Governor Ricketts on behalf of Nebraska agriculture for your continued focus on ag trade,” said Den Nerud, Nebraska Corn Growers Association Vice President.  “With 95 percent of the world’s population living outside of Nebraska’s borders and great growth potential outside of the U.S., developing a road map of strategies and partnerships to prioritize international opportunities for Nebraska’s farmers and ranchers is critical.”

“International trade is vitally important to companies from across the state,” said Barry Kennedy, President of Nebraska Chamber of Commerce and Industry.  “It’s important that we all work together to promote the state on the international stage.  We look forward to working with this administration, the universities, and the business community to further our common interests.”



STEVE WALLER RECEIVES NE AG YOUTH COUNCIL’S HIGHEST HONOR

The Nebraska Agricultural Youth Council (NAYC) presented its highest honor, the Nebraska Agricultural Youth Institute’s (NAYI) Award of Merit, to Steve Waller, Ph.D., Lincoln, during the annual NAYI banquet held July 12 in Lincoln. Waller is the former Dean of the University of Nebraska–Lincoln’s College of Agricultural Science and Natural Resources (CASNR).

“Dr. Waller has an extensive, positive connection with youth interested in agriculture,” said Nebraska Department of Agriculture (NDA) Director Greg Ibach. “He has taught, advised and worked alongside countless UNL students encouraging and guiding them through their ag-related coursework and career choices. He is very deserving of this honor.”

Waller joined UNL's Department of Agronomy in 1978. Through the years, he has held joint administrative appointments with CASNR and the Agricultural Research Division. In 2002, Waller became the Dean of CASNR after serving as interim Dean for two years. Waller is currently the Head of the Department of Grassland Studies at UNL where he continues to work with and support Nebraska’s future leaders of the ag industry.

“Dr. Waller actively gets to know students by attending meetings, club events and special banquets,” said Ibach. “He genuinely cares about their education and wants to help them find success within the agricultural industry.”



NEBRASKA GRAZING CONFERENCE IS AUG. 8-9 IN KEARNEY

Those concerned with the utilization and conservation of grazing lands are encouraged to register for the 17th annual Nebraska Grazing Conference Aug. 8-9 at the Kearney Ramada Inn, 301 Second Ave. Presenters will address issues of interest for beginning and experienced graziers, land managers and policy makers.

Keynote speakers include Jim Gerrish, grazing consultant and owner of American GrazingLands Services, LLC; and Peter Ballerstedt, forage product manager, Barenbrug USA. Gerrish will discuss fences and water points and conduct a workshop on fencing and water development. Ballerstedt will talk about grass-based health and the ruminant revolution on the first day and selecting cool-season grasses for irrigated or dryland conditions on the second day.

"This year, we have a diverse program with two highly sought-after speakers," said Daren Redfearn, a conference organizer. "In addition, the Tuesday morning session will be a workshop format on optimizing input costs highlighted by presentations from two prominent Nebraska producers, John Maddux and Jim Jenkins."

Other topics include working lands for wildlife, Natural Resources Conservation Service cost-share programs, weedy plants and managing risks. There will be a producer panel addressing annual forages vs. row crops under irrigation and the economics of grazing strategies. A number of exhibitors also will be on hand to speak with attendees in between sessions and during breaks.

"Vendors and exhibitors provide attendees with an opportunity to browse and speak with industry representatives to learn about new products and services," said Brent Plugge, extension educator with Nebraska Extension. "The trade show has always been popular with attendees."

Those interested in becoming a vendor or sponsor can contact Plugge at 308-236-1235. 

The registration fee for the full conference is $80 before Aug. 1 and $100 afterward. Full registration includes lunch each day and supper at an evening banquet, as well as a copy of the proceedings manual. One-day registration options are available. Reduced fees are available to full-time high school and college students.

For more information and to register, visit http://grassland.unl.edu/current-conference.



Johanns Joins alliantgroup as New Chairman of Agriculture

alliantgroup, a leading tax consultancy in the area of government-sponsored credits and incentives, is proud to announce the addition of former U.S. Secretary of Agriculture Mike Johanns as the firm’s new Chairman of Agriculture. A former Governor and U.S. Senator representing the state of Nebraska, Johanns brings more than 30 years of experience at virtually every level of government and a strong background in both agriculture and economic development.

In his new position, Johanns will play a key role in guiding the firm’s outreach on the various tax credits and incentives available for the benefit of the agricultural industry. With his lifetime of public service and extensive network within the sector, Johanns will be alliantgroup’s main advisor for the industry and support the firm’s growing team of agricultural professionals. In addition to helping build alliantgroup’s agricultural practice, Johanns will be a vital resource to the firm’s clients, CPA partners and industry alliances by providing valuable insight on the inner workings of Washington and updates on potential policy changes and their anticipated impact on American businesses. 

 “My new role with alliantgroup has given me the chance to bring real economic opportunity back to rural America,” said Johanns. “During my years of public service, I was committed to supporting small and mid-sized businesses and alliantgroup’s mission falls perfectly in line with that commitment. Having grown up on a farm in Iowa, agriculture is a personal passion of mine, and I am eager to help this industry grow and stay competitive in the global market. I look forward to helping alliantgroup educate companies on the powerful business incentives available for their benefit.”

“Throughout his time in the executive branch and as the governor and senator of a largely rural state, Secretary Johanns has built lasting relationships within the agricultural community,” said Shane Frank, alliantgroup COO. “No one understands the changes and challenges facing this industry better than Secretary Johanns, and I am looking forward to his contributions in helping to expand our agricultural practice.”

As the U.S. Secretary of Agriculture from 2005-2007, Johanns managed 18 different agencies that comprised a staff of 90,000 employees worldwide and a budget of $93 billion. During his tenure, Johanns opened or expanded access to 40 international markets and was responsible for multiple agricultural breakthroughs as a negotiator for the Doha Development Round. These export opportunities have been key to continued profitability for small and medium-sized businesses in the agriculture sector for everyone from farmers marketing their commodities to agriculture equipment manufacturers. He also represented the President of the United States during 32 international trips to advance trade, international aid and food safety. 

“I am so honored that Secretary Johanns has joined our firm,” said Dhaval Jadav, alliantgroup CEO. “Secretary Johanns is recognized as a premier leader in agriculture and economic development, having led both large and complex government agencies. This experience will be invaluable as we educate agricultural companies and co-ops on government-sponsored tax incentives and the immense value they can bring back to this sector of the economy. By joining our firm, Secretary Johanns has further elevated alliantgroup as a leader in tax expertise.”

In addition to his service for the executive branch, Johanns was the Governor of Nebraska from 1999-2005 and was one of the state’s United States Senators from 2009-2015. His bipartisan approach and willingness to reach across the aisle earned him the respect of his colleagues and constituents, producing numerous legislative achievements. As a U.S. Senator, Johanns contributed to the development and passage of a new farm bill, successfully persuaded regulatory agencies to refine rules affecting energy and agriculture, and championed trade agreements with Colombia, Panama and South Korea.

“From Nebraska to Washington D.C., no matter your politics, Senator Johanns has long been regarded as a respected public servant and champion for rural America,” said Dean Zerbe, alliantgroup National Managing Director and former Senior Counsel to the U.S. Senate Finance Committee.

In addition to his new role with alliantgroup, Johanns currently serves on the Board of Directors for Deere & Co. and on the Board of Managers for Burlington Capital and OSI Group. In 2016, he was appointed by the President and confirmed by the Senate to serve a term on the Millennium Challenge Corporation (MCC) Board.

“With his extensive background in government and agriculture, Secretary Johanns adds a unique perspective to our firm that will only enhance our understanding of the concerns of those within the agricultural sector,” said Jadav. “His insight will be vital in enhancing our outreach to the industry.”

alliantgroup is a premier specialty tax services consultancy that assists U.S. businesses and their CPA firms in identifying and properly claiming all available federal and state tax incentives. Headquartered in Houston, Texas, and with offices in New York, Chicago, Boston, Sacramento, Orange County, Indianapolis, Orlando and Washington, D.C., alliantgroup has helped agricultural-based businesses claim over $500 million in tax incentives. In total, the firm has helped over 20,000 American companies claim over $5 billion in government-sponsored credits, incentives and deductions.



China’s appetite for U.S. soybeans remains strong - Buyers ink deals to purchase 460 million bushels

Chinese buyers agreed to purchase more than $5 billion worth of soybeans today leading up to a historic Iowa agricultural trade mission to the country next week.

About two dozen contracts were signed by some of China’s largest processors to buy 460.3 million bushels of U.S. soybeans – or roughly 80 percent of last year’s record Iowa soybean production. The signing ceremony, co-sponsored by the Iowa Soybean Association, occurred during the 2017 Global Agricultural Commodity Industry Summit at the Des Moines Embassy Club.

ISA Board member Jeff Jorgenson of Sidney said the big soybean buy is a good sign China will continue to be the dominant buyer worldwide. He’ll join Iowa Gov. Kim Reynolds and more than 20 other state agricultural leaders during a trade mission to China July 19-28 to boost demand for Iowa-grown grains, meat, milk and eggs.

“China is such an incredible market for us,” said Jorgenson, a soybean, corn and livestock producer. “I’m looking forward to representing Iowa agriculture and telling more buyers and officials that we’ll continue to be a supplier of quality, sustainable soybeans and other ag products.”

In addition to a near-record one-time purchase of U.S. soybeans — the all-time high was 484.2 million bushels in 2015 — China agreed to buy 371 million tons of pork and beef during the summit. China recently lifted its ban of U.S. beef after the Mad Cow scare more than a decade ago.

Whether whole soybeans arrive by boat or in the form of red meat in China, ISA Board member April Hemmes of Hampton said helping feed the nation of 1.4 billion people benefits Iowa farmers.

The government projects a record 2.1 billion bushels of soybeans will be exported this year; more than 1 billion to China. Sixty million bushels of soybeans were exported via red meats in 2016, officials said.

“That’s very important to us,” said Hemmes, who recently returned from a trade mission to China with the United Soybean Board. “China is urbanizing and its citizens are becoming more affluent. They want more protein, and that means more soybeans.”

Wang Yunchao, general manager of COFCO Oils & Fats Western Specialization Platform, said protein and vegetable oil consumption in China is rising at a fast pace. COFCO (China Oilseed & Feed Corporation) is the nation’s largest soybean processor and signed several purchase agreements today.

China imported a little more than 3 billion bushels of soybeans in 2016, Yunchao said. He expects imports to hit 3.3 billion bushels next year.

“Consumption of protein is growing,” Yunchao said. “I’m optimistic it will continue.”

Iowa Lt. Gov. Adam Gregg said Iowa has cultivated a 30-plus-year friendship with China, which is now the state’s fifth-largest export market. It was spearheaded by former Gov. Terry Branstad, now trade ambassador to China, and will continue to be cultivated by Gov. Reynolds and the current administration, he said.

“I have no doubt the contracts (signed today) will enhance the partnership between our people for mutual benefit,” Gregg said.



New Swine Geneticist Hopes to Help Improve Reproductive Efficiency

Using genetics to improve reproductive performance and response to disease is a vital component of the future of the pork industry, and new Iowa State University animal scientist Nick Serão said he hopes his research will help with both areas. Serão began his position as assistant professor in swine genetics in March and has been developing his research team and program.

"Iowa State University is well-known for Animal Science and Animal Breeding & Genetics education, extension, and research and the state of Iowa is the most important place to do work in swine," he said. "I wanted to take my research program to a place where I know that we (my research group) are positively impacting the swine industry. Thus, being able to be part of all of this is a unique opportunity."

Serão brings several years of research and teaching experience in animal breeding and genetics, as well as collaborative ventures in areas such as nutrition, meat quality and reproduction. He's originally from Brazil where he earned both his B.S. in animal science and M.S. in breeding and genetics from the Federal University of Vicosa (UFV) and worked on several swine research projects. He obtained his Ph.D. in animal genomics from the University of Illinois at Urbana-Champaign (UIUC), and came to Iowa State for the first time in 2013 as a postdoctoral researcher working on disease response and feed efficiency in pigs, under Dr. Jack Dekkers. In August 2015, he became a faculty member at North Carolina State University until returning to Iowa State this past March.

"Although I'm more of a quantitative geneticist, I'm also interested in incorporating biological aspects into my primary research focus, and my goal is to help the industry improve reproductive efficiency through genetics," he said. "However, this is complicated because these traits are usually lowly heritable. So, I look for new traits that are more heritable with a biologic relationship, so we can increase sow performance much quicker."

Serão said he hopes and expects to be able to introduce new traits that are heritable, easy to measure and economically important, into selection indices, with the objective of improving genetic response for reproductive performance in sows and boars.

"A good component of my past, current, and future research is on response to diseases, especially on PRRS. Thus, I hope my work can impact the swine industry to show that selection for improved response to diseases can be a reality," he said.

In addition to research, Serão will teach animal breeding and genetics courses at the undergraduate and graduate levels, and will continue to promote the field of research to his students. He looks forward to sharing his research program and results with academic colleagues, students, the swine industry and producers. He can be contacted by email at serao@iastate.edu and phone at 515-294-3435.



U.S. Cattle Industry Leaders Establish Direction for Policy, Checkoff Programs

More than 700 cattle industry leaders are gathering at the Cattle Industry Summer Business Meeting in Denver this week to help create direction for industry programs. The meeting runs July 13-15. 

The event includes sessions of the National Cattlemen’s Beef Association, Cattlemen’s Beef Board, American National CattleWomen and National Cattlemen’s Foundation. Among the purposes of the yearly conference is to create a framework for checkoff and policy efforts on behalf of U.S. cattle producers for the 2018 fiscal year, which for NCBA and the Cattlemen’s Beef Board begins Oct. 1.

Keynote speaker at Thursday’s Opening General Session is Eric Baumgartner, executive vice president of VML, a global marketing ad agency. Baumgartner will provide insight into the advent of technologies that are changing how consumers purchase almost everything they buy, from hamburgers to vacations. General Session I is sponsored by Boehringer Ingelheim Vetmedica, Inc.

 Also at the Summer Business Meeting, results from the 2016 National Beef Quality Audit are being unveiled. About every five years since 1991 the NBQA has delivered a set of guideposts and measurements for cattle producers and others to help determine quality conformance of the U.S. beef supply.

“While cattlemen and women continue to improve their operations and the beef they produce, here has been tremendous volatility in our industry over the past couple of years,” said Craig Uden, a beef producer from Nebraska and NCBA president. “To maximize their success cattle producers need to understand not only the impact of their own operations but everything in the world that affects how they do business today.”

Joint Committees and Subcommittees will meet on Thursday and Friday to develop proposals for 2018 checkoff-funded research, education and promotion programs. Also on Friday NCBA policy committees will meet to determine priorities and discuss strategies for 2018. The NCBA Board will hold its board meeting on Saturday. The meeting of the Cattlemen’s Beef Board will take place on Friday, July 14.

“Cattlemen and women from across the country are taking time out of their busy lives to help make decisions that will have an impact on the direction our industry takes,” said Uden. “Meetings like this are a testament to the unselfish dedication these individuals have for the future of the beef cattle industry.”



Research Suggests Quality of U.S. Beef Supply Improving, But Opportunities Remain

Data from the 2016 National Beef Quality Audit suggests the beef industry continues to improve the quality of its products, but there is still room for improvement. Results from the research were presented at a session during the 2017 Cattle Industry Summer Meeting in Denver July 13.

The research, funded by the Beef Checkoff Program, has been conducted every five years for the past quarter century, and provides a set of guideposts and measurements for cattle producers and others to help determine quality conformance of the U.S. beef supply. NBQA results through the years have helped lead to improvements in cattle and beef production, including reductions in carcass blemishes and fewer lost opportunities related to branding and other practices.

Among the positive findings in the 2016 NBQA are a significant increase in Choice and Prime carcasses, a high mobility score for cattle entering packing plants and the fact that the number of blemishes, condemnations and other attributes that impact animal value remain small. Among areas for possible improvement are the fact that there was more bruising (although bruising was less severe) and the fact that more than 30 percent of livers harvested did not pass inspection and were condemned.

“The research proved the beef cattle industry has a great story to tell, but also suggests we aren’t getting that story to as many people as we should,” said Josh White, executive director of producer education for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff Program. “Utilizing the Beef Quality Assurance program and its principles more uniformly throughout the industry could not only enhance industry commitment to better beef, but would help increase consumer confidence and encourage greater beef demand. This research suggests that carrying the BQA message throughout the industry would benefit every beef audience.”



Farms and Ranches Need Tax Relief Now, South Dakota Farmer Tells Congress

Farm and ranch families need a permanent tax code that boosts the agricultural economy and frees them to reinvest in their businesses, Scott VanderWal, a South Dakota farmer, told the House Ways and Means Subcommittee on Tax Policy today.

“Farmers and ranchers operate under tight profit margins, often for rates of return that are modest compared to other businesses,” VanderWal said. “Our businesses are also cyclical where a period of prosperity can be followed by one or more unprofitable years.”

Farming is challenging under the best circumstances, with uncontrollable weather, disease outbreaks and unpredictable markets, said VanderWal, who also serves as vice president of the American Farm Bureau Federation and president of South Dakota Farm Bureau. On his family farm in Volga, South Dakota, VanderWal has seen the price of corn go as high as $7.60 per bushel to as low as $2.80 per bushel in the last 10 years. Nationwide, net farm income has been cut nearly in half since 2011.

“Reducing effective tax rates is the most important thing that tax reform can do to boost farm and ranch businesses,” said VanderWal. “Every dollar that we pay in taxes is a dollar that could be reinvested back into our farm, help lift my community and contribute to a robust agricultural economy.” That’s an investment the U.S. economy can’t afford to lose: In 2015, agriculture and related industries contributed $992 billion to U.S. gross domestic product and provided about 11 percent of U.S. employment.

While emphasizing the importance of lower tax rates, VanderWal also urged lawmakers to consider the broader impact of tax provisions on the effective rates farm and ranch families pay.

“Because our profit margins are tight, we are more likely to fall into lower tax brackets,” he said. “Tax reform plans that fail to factor in the impact of lost deductions, credits and exemptions for all rate brackets could result in a tax increase for agriculture.”



House Panel Advances FY 2018 Ag Spending Bill
NAWG newsletter

On Wednesday, July 12, 2017, the House Appropriations Committee considered and approved its version of the FY 2018 Agriculture Appropriations bill, which funds the Department of Agriculture, the Food and Drug Administration, Commodity Futures Trading Commission, and the Farm Credit Administration. The bill report includes important language supporting the Wheat and Barley Scab Initiative and the Small Grains Genomic Initiative, both of which have long been wheat research priorities for the wheat industry. The report also includes language encouraging further research into low Falling Numbers as well as the development of a new test.  Importantly, the bill also rejects the Trump Administration’s proposed closure of 17 Agriculture Research Service (ARS) facilities.  The National Association of Wheat Growers is concerned, though, about cuts in the bill to the ARS budget of $37.6 million.  Research investments are particularly important given the current conditions wheat farmers across the country are facing.



USTR Officially Starts Reexamination Of FTA With South Korea

The Office of the U.S. Trade Representative announced this week it would begin a reexamination of the U.S.-Korea Free Trade Agreement (KORUS) by formally notifying South Korea the United States will call a special joint committee meeting to discuss the trade agreement and consider changes.

Per the KORUS agreement, the joint committee is mandated to meet within 30 days, but U.S. trade promotion authority law also requires 90 days of notice to the Congress of the administration’s intent to renegotiate, which has not yet happened.

South Korea is one of the strongest markets for U.S. grains and value-added products made from grain. The U.S. Grains Council (USGC) has worked in South Korea since 1972, providing technical assistance and expertise on how to best utilize corn and related products like distiller’s dried grains with solubles (DDGS), educating government officials on the advantages of biotechnology and, of course, promoting trade.

“South Korea is a large and loyal customer for U.S. agriculture and has been an enormous success story for market development for U.S. grains,” said Chip Councell, USGC chairman and farmer from Maryland. “South Korea values the commitment of the U.S. corn industry to ensuring the most consistent, steady supply of quality feed grains and co-products.”

South Korea is a clear example of the transformational partnership available to U.S. grain farmers and their global customers through overseas market development.

When the Council opened its office in Seoul, South Korea’s livestock sector produced 1.2 million head of swine annually; by 2016, that had soared to more than 10.6 million head. In 1972, South Korea’s producers grew more than 24.5 million head of poultry, but by 2016, that was more than 90 million birds.

This dynamic growth was supported by accompanying surges in local feed grain manufacturing made possible by imports of U.S. coarse grains. The Council has also offered consistent technical expertise and support to local industry as they incorporated DDGS into feed rations, with 96 percent of feed millers in South Korea now including the co-product. Today, South Korea is a potential growth market for U.S. ethanol, the next phase of the Council’s market development work there.

Since the agreement entered into force in March 2012, KORUS has solidified and enhanced this longtime partnership. South Korea is now the fifth largest destination for U.S. agricultural exports overall and an incredibly important market for U.S. feed grains and co-products.

KORUS provided duty-free access for U.S. corn and sorghum exports immediately. The agreement also includes a 2,500 metric ton (nearly 115,000 bushels) duty-free quota for U.S. barley, which increases 2 percent each year while full tariffs are phased out, as well as important provisions offering increasing market access for beef, pork and poultry products.

South Korea was the fourth largest buyer of U.S. corn and DDGS combined in calendar year 2016, purchasing more than 5.7 million tons in total worth more than $1 billion, according to U.S. Department of Agriculture (USDA) trade data. These purchases also produced $1.3 billion in U.S. economic activity and supported 300,000 farms and 8,320 jobs, according to USDA.

South Korea was also the sixth largest market for U.S. barley in 2015/2016, and U.S. ethanol exports to South Korea jumped nearly three-fold from 13.9 million gallons in 2011/2012 to 47.3 million gallons last marketing year (126,000 tons to 429,000 tons in corn equivalent).

Exports of U.S. feed grains in all forms to South Korea have more than doubled thus far this marketing year (September 2016-May 2017) from last year’s total purchases. Purchases of U.S. corn have almost tripled year-over-year, totaling nearly 4.79 million tons (nearly 189 million bushels) this marketing year. U.S. DDGS exports to South Korea are also up by 26 percent year-over-year.

The terms in KORUS provide market access, but these sales are actualized through the strong trading partnership between the United States and South Korea that spans decades - a tenet important for all parties to remember as the reexamination process moves forward.

“U.S. farmers and agribusiness value the mutually-beneficial trade benefits both parties have realized since KORUS went into effect,” Councell said. “We will continue to work to ensure strong trade policy with South Korea and to work directly with our customers there to offer technical and policy experience, as we have done throughout the past four decades.”



U.S. DDGS Exports Up 16 Percent To Southeast Asia 

U.S. exports of distiller’s dried grains with solubles (DDGS) to Southeast Asia have increased 16 percent so far this marketing year, according to data from the U.S. Department of Agriculture (USDA) and analysis by the U.S. Grains Council (USGC).

The Southeast Asian region - which includes Brunei, Cambodia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam - currently represents the third largest market for U.S. DDGS. Thus far in the marketing year (September 2016-May 2017), sales to the region totaled more than 1.7 million metric tons, accounting for 20 percent of overall U.S. DDGS exports.

U.S. DDGS exports have increased to seven of the eight countries within the region this marketing year. Year-over-year, shipments of U.S. DDGS have increased by 55 percent to Thailand, to 630,000 tons, and 42 percent to Indonesia, to 348,000 tons. In addition, U.S. DDGS exports have more than doubled to both Malaysia and Myanmar compared to the same time the year prior. While sales are down to Vietnam due to outstanding market issues, the country’s more than 490,000 tons in purchases still rank as the seventh largest market for U.S. DDGS.

The Council continues to expand efforts DDGS sales in Asia, including with recent grain conferences in Taiwan, Thailand and Vietnam, to provide technical expertise and support as well as connect grain buyers and end-users with U.S. suppliers. The Council is also actively promoting the benefits of U.S. DDGS as a high-quality feed additive through programs like a recent engagement with KFC in Malaysia. This work throughout the region is helping end-users determine how best to incorporate U.S. DDGS into their rations and, combined with attractive prices and available supply, are seeing results in increased demand.