Tuesday July 18 Ag News

Deadline Is Aug. 1 to Enroll in Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC)

U.S. Department of Agriculture (USDA) Nebraska Farm Service Agency (FSA) Acting State Executive Director (SED) Mike Sander reminds farmers and ranchers they have until Aug. 1 to enroll in Agriculture Risk Coverage (ARC) and/or Price Loss Coverage (PLC) programs for the 2017 crop year. These programs trigger financial protections for participating agricultural producers when market forces cause substantial drops in crop prices or revenues.

“Producers have already elected ARC or PLC, but to receive program benefits they must enroll for the 2017 crop year by signing a contract before the August 1 deadline,” said Sander. “Please contact your local FSA office to schedule an appointment if you have not yet enrolled.”

Covered commodities under the programs include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (which includes short grain and sweet rice), safflower seed, sesame, soybeans, sunflower seed and wheat.

For more program information, contact your local FSA office or visit www.fsa.usda.gov/arc-plc.



FORAGE OPTIONS WITH DAMAGED CORN
Bruce Anderson, NE Extension Forage Specialist

               What can you do with corn damaged severely by hail or drought or even wind?  Fortunately, there are several forage alternatives.

               The most common salvage operation for corn damaged by hail, wind, drought, or other calamities is to chop it for silage.  Don't be in a hurry, though.  Standing corn currently could be over 80 percent moisture.  The easiest way, and maybe the best way, to lower moisture content is simply wait until some stalks start to turn brown.  Waiting also allows surviving corn to continue to add tonnage.

               If waiting isn't desirable, reduce moisture by windowing the crop and allow it to wilt one-half to one full day before chopping.  You also could mix grain or chopped hay to freshly chopped corn to lower the moisture content.  It takes quite a bit of material for mixing though – about 7 bushels of grain or 350 pounds of hay to lower each ton of silage down to 70 percent moisture from an original 80 percent moisture.  That's 7 bushels grain or 350 pounds of hay for each ton of silage.

               Or, you can allow that windrowed corn to dry completely and bale it as hay.  Be sure to test it for nitrates before feeding.

               Grazing might be the easiest way to use damaged corn, and this is a good way to extend your grazing season.  You might even plant some sorghum-sudangrass or oats and turnips between rows to grow more forage for grazing if previous herbicide use will allow it and you can wait until late fall before grazing.  Be sure to introduce livestock slowly to this new forage by feeding them before turning in to reduce the chances of digestive problems.  Also, strip graze the field to reduce trampling losses and get more grazing from the corn.

               We can’t change what Mother Nature has dished out.  All we can do is make the best of a bad situation.



Young Farmer Outlines Priorities for NAFTA Modernization Before House Subcommittee

York County Farm Bureau President Jason Perdue outlined a series of key agriculture objectives for modernization of the North American Free Trade Agreement (NAFTA) in testifying before the U.S. House of Representatives Committee on Ways and Means Trade Subcommittee, July 18 in Washington D.C. Perdue, who also serves on Nebraska Farm Bureau’s Young Farmers and Ranchers Committee, provided the testimony on behalf of the American Farm Bureau Federation.

“NAFTA has been overwhelmingly beneficial for the clear majority of farmers, ranchers, and associated businesses in the United States, Canada, and Mexico. U.S. farmers and ranchers from across the nation have benefited from an increase in annual exports to Mexico and Canada from $8.9 billion in 1993 to $38.1 billion in 2016,” Perdue testified.

Perdue further elaborated on the importance of NAFTA to Nebraska pointing out that Nebraska exported more than $2.4 billion worth of products to both Mexico and Canada in 2016, with agricultural products making up $1.5 billion of that total.

“Despite the clear and numerous benefits, there are reasons to update and reform NAFTA from agriculture’s perspective. While agriculture collectively has experienced substantial benefits, some individual commodities have faced challenges,” Perdue said.

Farm Bureau priorities for a modernized NAFTA include:
·         Updated, science-based sanitary and phytosanitary rules (i.e. basic rules for food safety and animal and plant health standards);
·         Improved dispute settlement procedures for fresh fruits, vegetables, and horticultural products;
·         Eliminated or reduced Canadian tariff barriers to dairy, poultry, eggs, and wine, as well as the recently implemented barriers to ultra-filtered milk;
·         Addressing the misuse of geographical indicators (i.e. trade distorting provisions which limit the ability for some U.S. products to move into partnering countries); and
·         Developing a consistent, science-based approach to biotechnology.

In June, Nebraska Farm Bureau submitted comments to the U.S. Trade Representative’s office urging the office to focus on maintaining the growth in agricultural trade with Canada and Mexico as the Trump Administration prepares for renegotiation of NAFTA. Today, roughly 30 percent of U.S. farm income can be attributed to international trade.

Perdue is from York, Nebraska where he resides with his wife, Karah, and their four children. Perdue balances time between a full-time job in Agriculture retail with the Wilbur-Ellis Company and their family farm operation that includes row crops, beef cows, and a contract poultry operation.



Lindsay Corporation Names Timothy Hassinger as New Chief Executive Officer and President

Today Lindsay Corporation (NYSE: LNN) announced the appointment of Timothy Hassinger as president and chief executive officer (CEO) and a member of its board of directors, effective October 16, 2017. Hassinger will succeed President and CEO Rick Parod, who previously announced he is retiring later this year after 17 years of service to the company.

“The board unanimously agrees that Tim is the right choice to lead this great company into the future,” said Michael C. Nahl, Lindsay's Chairman of the Board. “He brings global business experience with an exceptional track record of business leadership and creating profitable growth. This, combined with his people and customer focused operating style, has fueled his ability to exceed customer expectations and consistently deliver strong financial results.”

Hassinger, 55, currently serves as President and CEO of Dow AgroSciences, headquartered in Indianapolis, Indiana. Dow AgroSciences, a subsidiary of The Dow Chemical Company, is a leader in seeds and crop protection chemicals with more than $6 billion of sales in 120 countries and 8,000 employees.

“I look forward to working with the board and management team at Lindsay to build on the strong Lindsay brand and innovative products to provide new solutions to customers around the world,” said Hassinger.

A 33-year veteran of Dow AgroSciences, Hassinger has held a series of senior leadership positions throughout his career across a variety of the company’s domestic and international business units. Prior to becoming President and CEO of Dow AgroSciences in 2014, he served as the company’s Global Commercial Leader and Vice President for the Crop Protection Global Business Unit. Previously he served as Vice President for the Dow AgroSciences business in the Europe, Latin America, and Pacific regions. In 2005 he moved to Shanghai, China where he served as Regional Commercial Unit Leader for Greater China. From 1984 to 2005 he proceeded to hold a variety of commercial and supply chain positions of increasing responsibility.

Hassinger received his Bachelor of Science degree in Agricultural Economics from the University of Illinois and grew up on a family farm in Central Illinois. He is also active in a number of industry associations, as well as civic and charitable causes.

Nahl concluded, “On behalf of our shareholders, board and executive team, I want to thank Rick Parod for his many contributions over the past 17 years. Under his leadership, Lindsay has grown from a single plant generating approximately $100 million in revenues to an international leader in irrigation solutions, water management and infrastructure products with revenues of over $500 million. During his tenure he and his talented management team have invested in organic growth opportunities, completed a number of accretive and synergistic acquisitions and created over $1 billion in shareholder value as measured by share price appreciation, share buybacks and dividends. His contributions leave the company well positioned for continued future success.”



PrecisionAg® Awards of Excellence Announces 2017 Honorees

PrecisionAg® Institute is pleased to announce its Awards of Excellence winners for 2017. Honorees of this year’s prestigious award are recognized for their exceptional commitment to precision agriculture. They have passionately devoted their careers to the industry and set the stage for increased precision adoption and significant innovation.

This year’s award winners will be honored during the opening plenary session at the InfoAg Conference in St. Louis, MO, July 25-27, 2017.
     •  Crop Advisor/Entrepreneur of the Year – Wade Barnes, CEO, Farmers Edge, Winnipeg, MB Canada
     •  Legacy Award – Dr. Paul E. Fixen, International Plant Nutrition Institute (IPNI), Brookings, SD
     •  Educator/Researcher of the Year – Dr. Joe Luck, University of Nebraska-Lincoln (UNL), Lincoln, NE
     •  Educator/Researcher of the Year – Dr. Harold van Es, Cornell University, Ithaca, NY

Following is additional information on each of this year’s honorees:

Crop Advisor/Entrepreneur of the Year – Wade Barnes, CEO and President of Farmers Edge, co-founded the company because he believed in the value of variable rate technology, using satellite imagery and remote sensing technology to add efficiency and sustainability to farming.Barnes’ dream was initialized in a basement office with two employees. He has held on to his ambition in the face of continuing challenges to the business in the early growth years, adding locations, services, and staff, while continuously defining and redefining roles to meet objectives. “While Farmers Edge has new key investors, a new organizational structure, new partners, and management to meet these demands, Barnes continues to steer the ship with his focus on innovation in the industry,” said Dawn Peter, a Farmers Edge employee and sponsor for Barnes’ award nomination. “He is well advised by his investors and Board of Directors, and he leads with knowledge and passion for his field.”

Legacy Award – Dr. Paul E. Fixen, recently retired Senior Vice President at IPNI, coordinated Institute programs in the Americas and Oceania and directed the Institute’s research efforts. A highlight of Fixen's research experiences was leading a team at South Dakota State University that made substantial progress in understanding the role and requirement of chloride in crop production in the central and northern Great Plains and Prairies. Fixen’s career has emphasized the science of nutrient stewardship and how soil fertility and the use of fertilizer fit into the overall scheme of crop production systems and the environment. Fixen has authored 300+ articles related to nutrient management, including several book chapters, and developed and taught popular courses at both undergraduate and graduate levels. He is a Fellow of the American Society of Agronomy (ASA), the Soil Science Society of America (SSSA), the American Association for the Advancement of Science, and the Fluid Fertilizer Foundation. Fixen has served as Chair of SSSA Div. S-8, as Associate Editor of the Soil Science Society of America Journal, and is the 2016 President of ASA. He also has served on numerous boards, academic and agency review panels, and industry committees.

Educator/Researcher of the Year – Dr. Joe Luck is Associate Professor and Precision Agriculture Engineer in the Department of Biological Systems Engineering at University of Nebraska-Lincoln. As an educator, Dr. Luck constantly seeks tools and methods to best instruct and convey information. He is well published, with 31 peer-reviewed articles, 10 extension publications, and 21 learning guides centered on technology and site-specific management concepts. His signature Extension program is the Precision Agriculture Data Management Workshops that he developed, which the UNL Extension delivers to producers and consultants each year. This program focuses on farm data management, teaching participants about utilizing farm data to drive decisions and prescriptions at the field level. According to John Fulton, Associate Professor at The Ohio State University and Luck’s sponsor for this nomination, “Joe represents a new generation of educators and leaders for precision agriculture. He is an advocate for agriculture and promotes the use of precision agriculture to improve the farm operation while reducing environmental impacts.”

Educator/Researcher of the Year – Dr. Harold van Es is Professor of Soil Science at Cornell University. He established Cornell’s Computational Agriculture Initiative, which focused on the development of high resolution climate data and a model-based nitrogen management tool. This work later resulted in Adapt-N, a cloud-based, real-time nitrogen management tool. Through Adapt-N, precision nitrogen management offers win-win opportunities through higher profitability for farmers and significantly reduced environmental impacts from leaching and denitrification. “Dr. van Es has made significant contributions by educating students and agricultural and environmental professionals on spatial statistics, field research methods, soil health, and the opportunities around precision agriculture,” said Timothy L. Setter, Chair, Section of Soil and Crop Sciences at Cornell University and sponsor of Dr. van Es’ award nomination.

“Since 2007, the PrecisionAg Awards of Excellence has honored 43 individuals and organizations for exceptional work in precision agriculture research, adoption, and business management,” says Paul Schrimpf, Executive Editor of PrecisionAg and manager of the PrecisionAg Institute. “We, along with our PrecisionAg Institute Partner Organizations, are pleased to bring their stories of success to light, and hope they inspire those who are working to improve ag technology use and adoption today, and in the future.”



USDA Detects Case of Atypical BSE in Alabama Cow

The USDA announced an atypical case of Bovine Spongiform Encephalopathy, a neurologic disease of cattle, in an 11-year old cow in Alabama. This animal never entered slaughter channels and at no time presented a risk to the food supply, or to human health in the United States.

USDA Animal and Plant Health Inspection Service's (APHIS) National Veterinary Services Laboratories (NVSL) have determined that this cow was positive for atypical (L-type) BSE. The animal was showing clinical signs and was found through routine surveillance at an Alabama livestock market. APHIS and Alabama veterinary officials are gathering more information on the case.

BSE is not contagious and exists in two types - classical and atypical. Classical BSE is the form that occurred primarily in the United Kingdom, beginning in the late 1980's, and it has been linked to variant Creutzfeldt-Jakob disease (vCJD) in people. The primary source of infection for classical BSE is feed contaminated with the infectious prion agent, such as meat-and-bone meal containing protein derived from rendered infected cattle. Regulations from the Food and Drug Administration (FDA) have prohibited the inclusion of mammalian protein in feed for cattle and other ruminants since 1997 and have also prohibited high risk tissue materials in all animal feed since 2009. Atypical BSE is different, and it generally occurs in older cattle, usually 8 years of age or greater. It seems to arise rarely and spontaneously in all cattle populations.

This is the nation's 5th detection of BSE. Of the four previous U.S. cases, the first was a case of classical BSE that was imported from Canada; the rest have been atypical (H- or L-type) BSE.

The World Organization for Animal Health (OIE) has recognized the United States as negligible risk for BSE. As noted in the OIE guidelines for determining this status, atypical BSE cases do not impact official BSE risk status recognition as this form of the disease is believed to occur spontaneously in all cattle populations at a very low rate. Therefore, this finding of an atypical case will not change the negligible risk status of the United States, and should not lead to any trade issues.



New Beef WISE Study

New research shows lean beef can help people lose weight while maintaining lean muscle and supporting a healthy heart

New research published in Obesity Science & Practice shows that lean beef, as part of a healthy and higher-protein diet, can help people lose weight while maintaining muscle and a healthy heart.  "The Beef WISE Study: Beef’s Role in Weight Improvement, Satisfaction, and Energy," conducted at the University of Colorado Anschutz Health and Wellness Center with a research grant from the beef checkoff, adds to the growing body of evidence demonstrating lean beef can contribute to a healthy weight loss diet.

While the popularity of higher-protein diets has grown considerably, there is often guidance telling people to limit red meat as a protein source. However, few studies have compared different high-quality protein sources to understand their effectiveness in a weight loss or maintenance diet. Dr. Drew Sayer, PhD, and his colleagues at the Anschutz Health and Wellness Center, sought to understand the effectiveness of lean beef compared to other protein sources on measures of health — such as weight loss and muscle mass maintenance — in a higher-protein diet, as well as the impact on cardiovascular disease risk factors.

Lean beef as effective as other proteins for weight loss potential
The Beef WISE Study included 99 overweight or obese adults in a comprehensive weight management program called State of Slim. For 16 weeks, they emphasized behavioral strategies to make lasting healthful changes in diet and physical activity to promote optimal health and wellness.

In addition to participating in regular moderate-intensity exercise, study participants were separated into two groups that followed the higher-protein diet. One group consumed four or more servings of lean beef each week and the other group was restricted from eating red meat. Subjects in both groups lost equal amounts of body weight and fat mass while preserving muscle.

“A key finding of this study is that 90 to 95 percent of the weight lost came from fat, not muscle,” said Dr. Sayer. “This shows that lean beef doesn’t have to be restricted in a higher-protein diet and is just as effective as other protein choices in supporting healthy weight loss and leaner bodies.”
Growing evidence on lean beef and heart health

All study participants, including those who consumed lean beef four or more times a week as part of the healthy, higher-protein diet in combination with exercise, showed improvements in their total and LDL cholesterol and blood pressure metrics, indicating lean beef did not negatively affect their heart health.

The Beef WISE Study contributes to the growing body of research demonstrating the role of lean beef in heart-healthy diets and strong bodies. This includes a study called BOLD (Beef in an Optimal Lean Diet), which demonstrated that adding lean beef to the well-established Dietary Approaches to Stop Hypertension (DASH) diet lowered heart disease risk by reducing levels of total and LDL cholesterol.

Protein and weight loss
A substantial body of evidence shows the nutrients in beef, such as high-quality protein, can help satisfy hunger and maintain a healthy weight, build and maintain muscle, and fuel a healthy and active lifestyle. Beef is an important source of nutrients, including iron, zinc and B-vitamins, for optimal health.

“Losing weight is not easy. Neither is maintaining a healthy weight, particularly as we age. We know people succeed most often when they make small changes they can stick with,” said Shalene McNeill, PhD, RD, Executive Director of the Human Nutrition Research Program at National Cattlemen’s Beef Association, a contractor to the beef checkoff. “This study is great news for people who enjoy beef, but might have been told to avoid it while following weight loss diets. It underscores, once again, lean beef can be part of a healthy, higher-protein diet for weight loss.”

For more nutrition information, recipes and resources on all things beef, visit http://www.beefitswhatsfordinner.com/proteinsbenefits.aspx. 



Vaccine Bank Needed To Protect Food, National Security

Citing economic and food and national security concerns, an ad hoc coalition of more than 100 agricultural organizations and allied industries groups urged Congress to include in the next Farm Bill language establishing and funding a Foot-and-Mouth Disease (FMD) vaccine bank.

FMD is an infectious viral disease that affects cloven-hooved animals, including cattle, pigs and sheep; it is not a food safety or human health threat. Although the disease was last detected in the United States in 1929, it is endemic in many parts of the world.

In a letter sent today to the chairmen and ranking members of the Senate and House agriculture committees, the coalition pointed out that “an outbreak of FMD will have a devastating effect on all of agriculture – not just livestock producers – and will have long-lasting ramifications for the viability of U.S. agriculture, the maintenance of food security and affordability … and overall national security.”

According to Iowa State University economists, an FMD outbreak in the United States, which would prompt countries to close their markets to U.S. meat exports – thus creating a surplus of meat on the domestic market – would cost the beef and pork industries a combined $128 billion over 10 years if livestock producers weren’t able to combat the disease through vaccination. The corn and soybean industries would lose over a decade $44 billion and $25 billion, respectively; and economy-wide job losses would top 1.5 million.

“These costs can only be mitigated if the U.S. can mount a swift and thorough response once FMD is detected within our borders,” the coalition wrote. “Such a response is entirely reliant on having an adequate vaccine bank; there is no other option to prevent these catastrophic losses.”

“An outbreak of FMD in this country would be devastating for the U.S. pork industry,” said NPPC President-elect Jim Heimerl, a pork producer from Johnstown, Ohio, and chairman of NPPC’s Farm Bill Policy Task Force. “The next Farm Bill must establish and fully fund a vaccine bank that gives us the ability to quickly control then eradicate this animal disease.”

The United States does not have access to enough FMD vaccine to handle more than a very small, localized disease event. Currently, the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service manages a vaccine bank at Plum Island, N.Y., where vaccine antigen concentrate for a limited number of FMD strains is stored. If an outbreak occurred, the antigen would need to be shipped to manufacturers in England or France to be turned into finished vaccine and shipped back to the United States.

While the cost of establishing a robust FMD vaccine bank – $150 million annually – is “significant,” it pales in comparison to the projected economic consequences to the agriculture industry and to the nation’s food and national security, the coalition pointed out.



NCBA Signs Coalition Letter In Support of Foot and Mouth Disease Vaccine Bank

The National Cattlemen’s Beef Association (NCBA) today joined with more than 100 other agricultural groups and industry leaders in calling for Congress to establish and fully fund a robust Foot and Mouth Disease (FMD) vaccine bank as part of the 2018 Farm Bill. The letter was sent to U.S. Senate Agriculture, Nutrition and Forestry Committee Chairman Pat Roberts (R-Kansas) and Ranking Member Debbie Stabenow (D-Mich.), as well as U.S. House Agriculture Committee Chairman Mike Conaway (R-Texas) and Collin Peterson (D-Minn.)

“An outbreak of FMD will have a devastating effect on all of agriculture – not just livestock producers – and will have long-lasting ramifications for the viability of U.S. agriculture, the maintenance of food security in this great nation, and overall national security,” the letter stated. “An outbreak of FMD would immediately close all export markets. The cumulative impact of an outbreak on the beef and pork sectors over a 10-year period would be more than $128 billion... The annual jobs impact of such a reduction in industry revenue is more than 58,000 in direct employment and nearly 154,000 in total employment.”

As the letter was delivered to Capitol Hill, NCBA President Craig Uden stressed the importance of investing in a FMD vaccine bank, rather than trying to contain an outbreak after the fact.

“Simply put, we cannot afford to be locked out of valuable foreign markets again,” Uden said. “It’s taken us well over a decade to get back up to speed in Asia after the 2003 BSE scare, and we must have support and full funding for this FMD vaccine bank to protect for our vital industry. The consequences would be catastrophic.”

Uden recently returned from a trade mission to China, which just reopened its borders to American-made beef for the first time in nearly 14 years.

The letter to Capitol Hill’s agricultural leaders was spearheaded by NCBA, the National Pork Producers Council, the American Sheep Industry Association, and the National Milk Producers Federation.



Farm Bureau Responds to USTR’s NAFTA Objectives
Zippy Duvall, president, American Farm Bureau Federation

“The North American Free Trade agreement has helped America’s farmers and ranchers make significant gains in U.S. ag exports to Canada and Mexico, and the administration’s negotiating objectives for the agreement will maintain and improve agricultural trade with our nearest trading partners. We look forward to expanding our market opportunities with our North American neighbors even further by bringing this agreement into the 21st century.

“Free trade agreements have a proven track record of boosting revenue for U.S. agriculture. They create a level playing field for our farmers and ranchers to compete in the global marketplace, and NAFTA is no exception with ag exports to Canada and Mexico increasing from $8.9 billion in 1993 to $38 billion in 2016. It is vital that we lock in that progress as the first point of talks to improve NAFTA.

“While we have seen tremendous success with NAFTA, there is still room for improvement. We need to address challenges that remain for our fruit and vegetable, dairy, and row crop and wheat farmers, and ensure all our farmers are free to get their products to market under modern and science-based standards. A modernized NAFTA can work for all of U.S. agriculture by building on the strong trading partnerships we’ve established over the last two decades.”

Farm Bureau priorities for a modernized NAFTA include:
-    Updated, science-based sanitary and phytosanitary rules;
-    Improved dispute settlement procedures for fresh fruits, vegetables and horticultural products;
-    Eliminated or reduced Canadian tariff barriers to dairy, poultry eggs and wine, as well as the recently implemented barriers to ultra-filtered milk;
-    Addressing the misuse of geographical indicators; and
-    Developing a consistent, science-based approach to biotechnology.



NMPF, USDEC Dairy Cooperative Leader Outlines NAFTA Renegotiation Priorities at Congressional Hearing

The CEO of a major farmer-owned dairy cooperative in Washington state told a congressional panel today that the North American Free Trade Agreement (NAFTA) has created jobs and increased sales for his company and the entire U.S. dairy sector, and that a renegotiated treaty must maintain market access to Mexico while also fixing trade challenges with Canada.

“An agreement that has done this much good and that supports more than 25,000 in the dairy sector alone must be preserved,” said Stan Ryan, president and CEO of Darigold in Seattle. Darigold is the third-largest privately held business in Washington state, with total annual sales of $2.1 billion in fiscal year 2017. Darigold markets 40 percent of its milk products outside the United States. The cooperative is a member of both the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC).

On Tuesday, Ryan told members of the House Ways and Means Subcommittee on Trade that Darigold and other U.S. dairy companies have benefitted from NAFTA through “stronger demand for their milk than would otherwise be the case. It is critical that this progress not be reversed and that our fully open access to the Mexican market remain in place.” Ryan’s full testimony can be found here.

“NAFTA has been a driving force behind remarkable growth in dairy exports and is the reason the United States’ share today of Mexico’s dairy imports is 73 percent,” Ryan said, adding that U.S. dairy sales to Mexico have risen to $1.2 billion in 2016 from just $124 million in 1995.

Ryan noted that the preferential tariffs enjoyed by the United States could be undermined if the dairy-specific benefits of NAFTA are watered down in a revised pact. He also said Mexico is currently negotiating a trade agreement with the European Union and exploring possible agreements with New Zealand and Australia. all of which are significant dairy exporters with an interest in expanded sales to North America.

NAFTA is “the vehicle the U.S. will need to ensure that we remain competitive in that market, should Mexico decide to use its ongoing trade discussions with major dairy exporting nations to open up new inroads to its market,” Ryan said.

His testimony also focused on the lack of U.S. dairy access to Canada included in NAFTA, a hold-over from when the agreement was negotiated in the early 1990s, as well as subsequent challenges that have resulted from Canadian policies designed to distort trade.

“NAFTA modernization discussions are an unmissable opportunity to address just that type of unfinished business in order to truly open up the North American market and put our dairy exports to Canada on par with the vast majority of the rest of the U.S. economy,” Ryan said.

In particular, he focused on a new Canadian pricing scheme developed to restrict U.S. dairy protein exports to Canada while also facilitating the disposal of Canada’s excess milk proteins in world markets. This system “is actually eroding what little opportunity the U.S. had for sales in Canada, and even worse, it is being used to underprice dairy products from the U.S. and other major dairy suppliers in markets around the world,” Ryan said.

Canada’s National Ingredient Strategy contravenes the spirit of Canada’s World Trade Organization and NAFTA trade commitments, Ryan said, adding that the new Class 7 pricing strategy allows Canada to sell milk powders at prices intended to undercut competing products from other nations, even though domestically Canada has one of the world’s highest raw milk prices.

“If Canada wishes to retain a government-run system of micro-managing its milk supply, that is its prerogative, but that does not give it the right to use the high returns from that system to disrupt with indirect subsidies the commercial dairy markets on which Darigold and countless other good-faith competitors in the U.S. and elsewhere rely,” he said.

“Common-sense economics would say, if it looks and feels like subsidized dumping, it probably is,” Ryan said. “This just started, and it will damage U.S. dairy export shares around the globe.  We request that Congress work with the Administration to repeal it.”



 NAFTA Objectives a Missed Opportunity for Family Farmers

The U.S. Trade Representative (USTR) this week released its Summary of Objectives for the North American Free Trade Agreement (NAFTA) Renegotiation, a document that will guide talks with Canada and Mexico expected to begin in mid-August.

In response to the objectives, National Farmers Union (NFU) President Roger Johnson issued the following statement:

For too long, our nation’s trade negotiators have prioritized a free trade over fair trade agenda, leading to a massive trade deficit, lost jobs and lowered wages in rural communities across America. We are cautiously optimistic that several of the USTR’s recommendations for the NAFTA renegotiation will address the fundamental flaws of free trade agreements.

Free trade agreements have not resulted in a stable positive balance of trade for U.S. agriculture. In 2015, the U.S. had an agricultural trade deficit of $839 million with Canada and $3.3 billion with Mexico. NFU is encouraged by USTR’s emphasis on establishing balanced trade and reducing the national trade deficit, and hopes they will follow through on those objectives during renegotiations.

Currency manipulation has been another unfortunate hallmark of the free trade paradigm, allowing trade competitors to gain an unfair advantage. We are pleased that the objectives include the prevention of exchange rate manipulation, as the issue has been almost entirely overlooked in past trade deals.

However, in many ways the objectives are a missed opportunity for family farmers and ranchers. Though international trade is essential for the financial success of American food producers, free trade agreements such as NAFTA often favor corporate interests over those of working people. Unfortunately, this has led to corporate consolidation in agribusiness, threatening the economic stability of family farmers and ranchers. By neglecting to address the role of free trade in the proliferation of corporate consolidation, the current administration seems content to allow this disturbing and dangerous trend to continue.

We are similarly concerned by the noticeable omission of Country-Of-Origin-Labeling (COOL) for meat products. The lack of accurate labeling undermines independent cattle producers who proudly produce high-quality, American-grown beef and deny consumers the opportunity to know where their food is produced. The administration should reinstate domestic sovereignty by ensuring COOL is a priority for NAFTA renegotiations.