NeFB YF&Rs Stay Positive in The Face of Trade and Commodity Price Uncertainty
Young farmers and ranchers tend to feel the weight of agriculture’s challenging times sooner than those who have been in the business for a while. Trying to manage the daily talk of international trade disputes, farm bill debates, the back-and-forth battles over ethanol mandates, low crop prices, high overhead costs, and tight or nonexistent profit margins. But despite all these challenges, members of the Nebraska Farm Bureau Young Farmers and Ranchers Committee, who attended a national affairs trip to Washington, D.C. July 16-18, are optimistic about their future in agriculture.
“Right now, you are seeing good corn and soybean crops, so it’s not uncommon to see lower commodity prices at this time. At the same time, the current trade situation is also likely having an impact. Despite all of this, we remain cautiously optimistic President Trump will be able to score a few victories as he works through our nation’s trading relationship with the rest of the world,” John Temme, youth at-large member of the NEFB board of directors said July 20. Temme farms and operates a dairy farmer near Wayne.
Nebraska Farm Bureau works to equip young farmers and ranchers in Nebraska to lead effectively and advocate for positive change in agriculture, by sharing personal stories of how decisions made in Washington, D.C. effects their farms and ranches.
“We had a good and diverse group that visited with our Nebraska delegation bringing a lot of perspective to the issues facing agriculture today,” Steve Nelson, president of the Nebraska Farm Bureau said. “There is support for President Trump’s efforts in doing the right thing on trade, but the longer the current situation remains unsolved, the greater the concern grows among young farmers and ranchers,” Nelson said.
While the group’s main message was one of hope to make countries like China play fair in trade, they also stressed that there needs to be a quick resolution to these trade disputes.
“Those in agriculture who stand to lose the most from a trade war are young farmers and ranchers who have not built up a lot of equity in their farms and ranches, since they are just getting started. The administration needs to show it can conclude trade negotiations and pass a Farm Bill. If the U.S. can finalize an agreement with both Canada and Mexico and get a farm bill passed by the end of September, it would go a long way toward calming the unease in the countryside,” Temme said.
Another issue front and center during the trip was showing their support of updating and improving the Endangered Species Act (ESA). A number of bills were introduced in the House that are critical to the success of meeting the law’s intent — to protect and recover imperiled species and the eco-systems upon which they depend.
“We have someone in the White House that wants to help farmers and ranchers instead of constantly creating red tape and regulating what we do on our operations. We hope we can build some momentum over the next several months in order to finally make some needed changes to the ESA,” Temme said.
Another issue gaining a lot of attention in Washington is the future of lab grown meats. Agencies in the government are divided on who should have ultimate responsibility for regulation of this product. Both Food and Drug Administration (FDA) and United States Department of Agriculture (USDA) regulators assert that they have jurisdiction over the products and publicly argue over that responsibility.
“We have concerns with how this product is labeled and who in the federal government should regulate it. As things move forward in Washington, we hope our USDA rather than FDA has the final say as USDA has a better history of being friendlier to agriculture,” Temme said.
Those attending the National Affairs visit were:
Steve Nelson, president Nebraska Farm Bureau – Kearney/Franklin County
John and Molly Temme, Youth At-Large NEFB Board of Directors – Wayne County
Shane and Nicole Greving, At-Large representative on the YF&R Committee – Merrick County
Alec Ibach, Central Region representative YF&R Committee – Buffalo County
Brady and Katie Revels, Southeast Region representative on the YF&R Committee – Douglas County
While the list of challenges young farmers and ranchers face is long, the need for young people in agriculture to answer the call of growing food for our nation and world remains as strong as ever. “Continuing to communicate our message to key decision makers is vital to the future success of our nation as well as for farm and ranch families,” Nelson said.
HARVESTING SUMMER ANNUAL GRASSES FOR HAY
Bruce Anderson, NE Extension Forage Specialist
Can hay from summer annual grasses be dry and high quality? No way, you say? It can't be done! Well, if these are your thoughts, let’s see if I can change your mind.
It is difficult to put up good quality hay – hay that is dry and will not heat or mold – from summer annual grasses like sorghum-sudan hybrids, pearl millet, and forage sorghums. Obviously, this type of hay, which is also called cane hay by some folks, is challenging to bale or stack for most growers. So let's look at what it takes to make good cane hay.
Nearly all problems making good summer grass or cane hay are caused by their stems. Stems are low in protein and energy, they are unbearably slow to dry, and the lower stems contain most of the potentially toxic nitrates.
To solve some problems, cut early, when plants are only waist high. When cut early, stems are smaller, they’re eaten more readily, and the hay contains more protein and energy. Also, there is less plant volume. So with smaller stems and fewer of them the hay will dry quicker.
Regardless of when you harvest though, cut it high, leaving eight to ten inches of stubble. Tall stubble pays off three ways – it helps plants begin regrowth quicker, it holds hay off the ground so air can help dry underneath, and it keeps many nitrates out in the field stubble rather than harvesting them all in your hay.
And finally, always crimp cane hay. Even when stems are small, the waxy coating on the stems cause slow drying. But if you break open these stems by crimping, water will be able to escape and evaporate more quickly.
So cut it early, cut it high. Crimp the stems and they will dry.
HAYING WET MEADOWS THAT ARE TOO WET
The extra rain received in central and western Nebraska this year has been mostly welcome. But it has raised havoc with making hay, especially on wet meadows.
Wet meadows are a great resource. Their natural subirrigation enables them to reliably grow many of the plants cut for winter hay for many ranches.
This year, however, many of these meadows have had too much of a good thing – rain. Not only have frequent rain showers made it difficult to put up the hay, many meadows are so wet it’s been impossible to even get in to cut the hay.
So what do you do? I suppose you can continue to wait until the ground dries and firms up enough to drive haying equipment over it. But the quality of this late cut hay isn’t going to be very good and the cost of putting it up will be high. And for many of you, much of your summer hay crew will soon go back to school.
Maybe a better idea would be to winter graze the meadows, either as standing grass or by windrow grazing. You might need to build some temporary fence to efficiently strip graze as well as figure out how cattle will be watered, but there are several advantages to this approach. First, it saves you the time and expense of making and feeding hay. Also, it reduces the risk of damaging the meadow with heavy equipment running over it when it’s too soft. Cattle won’t cause damage if you graze only when the ground is firm or frozen. And finally, research on both meadows and uplands has shown that dry cows do well when winter grazing, often needing just a little protein supplement to assure good fiber digestion and healthy calves.
With all these advantages, I wouldn’t be surprised if some of you ranchers who try it decide to do at least some of it on a regular basis.
National FFA Organization Names 2018 American Star Award Finalists
Today, the National FFA Organization selected 16 students from throughout the United States as finalists for its 2018 top achievement awards: American Star Farmer, American Star in Agribusiness, American Star in Agricultural Placement and American Star in Agriscience.
The American Star Awards represents the best of the best among thousands of American FFA Degree recipients. The award recognizes FFA members who have developed outstanding agricultural skills and competencies through the completion of a supervised agricultural experience (SAE) program. A required activity in FFA, an SAE allows members to learn by doing. Members can own and operate an agricultural business, intern at an agricultural business or conduct an agriculture-based scientific experiment and report the results.
Other requirements to achieve the award include demonstrating top management skills; completing key agricultural education, scholastic and leadership requirements; and earning an American FFA Degree, the organization’s highest level of student accomplishment.
The finalists include:
American Star Farmer
Adam Eichacker of the McCook Central FFA Chapter in South Dakota
Dylan Finken of the Max FFA Chapter in North Dakota
Austin Stanton of the Centralia FFA Chapter in Missouri
Laura Stobb of the Milaca FFA Chapter in Minnesota
American Star in Agribusiness
Benjamin Curtin of the Taylorville FFA Chapter in Illinois
Aaron Deunk of the Norris FFA Chapter in Nebraska
Conner Watts of the Slaton FFA Chapter in Texas
Brady Womack of the Morris FFA Chapter in Oklahoma
American Star in Agricultural Placement
Gracie Danner of the West Liberty FFA Chapter in Iowa
Landon Herring of the Lowndes County FFA Chapter in Georgia
Jarret Moser of the Jefferson County FFA Chapter in Tennessee
Colin Wegner of the United South Central FFA in Minnesota
American Star in Agriscience
Adrienne Blakey of the Stillwater FFA Chapter in Oklahoma
Katherine Marie Fazzino of the Rudder FFA Chapter in Texas
Eric Koehlmoos of the South O’Brien FFA Chapter in Iowa
Katheryn Vacula of the Big Foot FFA Chapter in Wisconsin
A panel of judges will interview finalists and select one winner for each award at the 91st National FFA Convention & Expo, Oct. 24-27 in Indianapolis. The four winners will be announced during an onstage ceremony on Thursday, Oct. 25.
Visit FFA.org/stars for more information about the American Star Awards.
Case IH, Elanco and Syngenta sponsor the American FFA Degree recognition program.
Keeping Grazing Herds Healthy is Focus of New Publication
Grazing animals are exposed to parasites throughout the grazing season. Both external and internal parasites can infest animals and impact the health and performance of grazing livestock.
A new Iowa State University Extension and Outreach publication titled “Internal Parasites in Grazing Ruminants” (IBCR 203) focuses on understanding and controlling these challenges in grazing cattle. It is written by Claire Andresen, graduate assistant in animal science, and Troy Brick, DVM, assistant professor of veterinary diagnostic and production animal medicine at Iowa State.
The publication focuses on different ways to keep herds healthy, including good pasture management and deworming.
“Deworming is an important production practice for cow-calf producers,” Brick said. “Research has shown that not utilizing dewormers could negatively impact break-even prices by as much as 30 percent per head each year. This includes impacts on weaning rate, pregnancy rate and survival rate of the calf.”
This treatment is especially important for animals that are most susceptible to parasites, including all bulls, yearling animals, stocker and replacement heifers and two-year old cows.
“While suckling calves aren’t as high risk as weaned calves, it can still be beneficial to treat pre-weaned calves between 200 and 400 pounds,” Brick said. “In a cow-calf setting, treating only cows typically provides adequate protection for calves.”
The publication also contains information on pharmaceutical options available to producers for parasite protection. A table included in the publication provides a comprehensive list of drugs available, the proper dosage, mode of administration and withdrawal time. The specific species of parasites each product targets is also included.
“Working with your local veterinarian to identify predominant worm species in your herd, selecting the proper dewormer to treat them and implementing good pasture management practices will result in a well-rounded parasite control program for your herd,” Brick said.
Iowa Farmers add their voice to timely issues impacting soybean production
Fourteen Iowa soybean farmers have volunteered to serve on the Iowa Soybean Association’s (ISA) Communications Squad.
Participants are empowered to share timely information about their industry and agriculture. Activities include visiting with reporters, speaking to civic and community groups, and offering their agricultural perspectives through a variety of communications channels including social media.
“The goal of the Communications Squad is to help participants take control of the narrative surrounding issues in the agriculture industry to ensure their voices are heard and their stories are told accurately,” says ISA Communications Director Aaron Putze..
ISA Communications Squad participants are:
· Tom Adam, Harper
· Tim Bardole, Rippey
· Kellie Blair, Dayton
· Steph Essick, Dickens
· Jim Fitkin, Cedar Falls
· Lindsay Greiner, Keota
· April Hemmes, Hampton
· Randy Miller, Lacona
· Val Plagge, Latimer
· Bill Shipley, Nodaway
· Randy Souder, Rockwell City
· Rob Stout, Washington
· Dave Struthers, Collins
· Dave Walton, Wilton
Farmers take part in four training sessions that provide tips for conducting successful interviews, writing impactful letters to the editor, speaking confidently in public, engaging in thoughtful conversations with consumers and being active on social media.
The group launchedin June with its first training session. It offered attendees insights on being interviewed from a former reporter and tips to improve active listening skills. It also included a tour of WHO-TV (Des Moines) where participants viewed a real-time newscast and interacted with reporters and station management.
Additional sessions this summer and fall will offer communications squad participants tips for photography and engaging others on social media. They’ll engage with fairgoers at the Iowa Food & Family Project exhibit in August and conclude training in September.
“We appreciate the time and effort these farmers are investing to improve their communication skills and apply those skills to be more vocal advocates for soybean farmers,” Putze says. “People respect the opinions of farmers and welcome their first-hand knowledge on issues that have an impact locally and globally.”
The Communications Squad is powered by Corteva, Hertz Farm Management, Inc., Iowa Select Farms and Landus Cooperative.
To learn more about ISA, go to www.iasoybeans.com.
USDA Cold Storage June 2018 Highlights
Total red meat supplies in freezers on June 30, 2018 were down 7 percent from the previous month but up 5 percent from last year. Total pounds of beef in freezers were down 3 percent from the previous month but up 8 percent from last year. Frozen pork supplies were down 10 percent from the previous month but up slightly from last year. Stocks of pork bellies were down 16 percent from last month but up 130 percent from last year.
Total frozen poultry supplies on June 30, 2018 were up 3 percent from the previous month and up 6 percent from a year ago. Total stocks of chicken were up 2 percent from the previous month and up 10 percent from last year. Total pounds of turkey in freezers were up 5 percent from last month but down 1 percent from June 30, 2017.
Total natural cheese stocks in refrigerated warehouses on June 30, 2018 were up 1 percent from the previous month and up 6 percent from June 30, 2017. Butter stocks were down 1 percent from last month but up 8 percent from a year ago.
Total frozen fruit stocks were up 13 percent from last month but down 11 percent from a year ago. Total frozen vegetable stocks were up 1 percent from last month but down 6 percent from a year ago.
Acting Administrator Wheeler Codifies Latest Animal Waste Report Exemptions Under CERCLA
Yesterday, U.S. Environmental Protection Agency (EPA) Acting Administrator Andrew Wheeler signed a final rule that made changes in regulations to conform to the FARM Act. The final rule also removes the regulatory text of EPA’s 2008 rule that provided an exemption to farms from reporting.
“EPA is taking action to reflect Congress’s direction in the FARM Act that removed an undue reporting burden on American agriculture,” said EPA Acting Administrator Andrew Wheeler. “EPA is committed to providing regulatory clarity and certainty to farmers and ranchers — hardworking Americans invested in conserving the land and environment.”
“Over the years, we’ve seen too many harmful federal regulations make it harder for Nebraska agriculture producers to feed the world,” said Senator Deb Fischer. “That’s why I worked to pass legislation exempting farmers and ranchers from reporting requirements meant for toxic superfund sites. I thank Acting Administrator Wheeler for signing this final rule to implement the law that will provide our nation’s producers with the relief they deserve.”
Background
The rule responds to the vacatur of the CERCLA/EPCRA reporting exemption from the U.S. Court of Appeals for the D.C. Circuit. On December 18, 2008, EPA published a final rule that exempted many farms from reporting air releases of hazardous substances from animal waste. On April 11, 2017, the D.C. Circuit Court vacated this final rule.
Farms, however, remained exempt because of legislative changes in the Fair Agricultural Reporting Method (FARM) Act, which was signed into law on March 23, 2018. The final rule makes regulatory revisions to reflect changes to CERCLA enacted in the FARM Act. The Agency also removed the 2008 definitions of "farm" and "animal waste" from its regulations and added revised definitions of these terms to CERCLA regulations that correspond with the FARM Act.
For more information, please see our webpage at www.epa.gov/animalwaste.
Large Loans for Livestock Drive Uptick in Farm Lending
Cortney Cowley , Economist and Ty Kreitman , Assistant Economist
Federal Reserve Bank, Kansas City
Lending activity in the agricultural sector increased slightly in the second quarter of 2018, supported by larger loans for livestock. In the short term, higher livestock prices in the first half of the quarter likely were responsible for the increased size of livestock loans. Longer term, the size of livestock loans also has been trending higher, suggesting that consolidation has contributed to fewer, larger farms with larger lending needs. Increased lending on farm operations comes amid increasing risk in the agricultural sector, as expectations of large supplies and trade disputes have contributed to sharp declines in June of prices for most major agricultural commodities.
Section A: Second Quarter National Farm Loan Data
Farm lending activity increased slightly in the second quarter, according to the National Survey of Terms of Lending to Farmers. The total volume of non-real estate farm loans was about 2 percent higher than the same period last year. After falling to five-year lows in 2017, the volume of farm loans grew leading into 2018 and has continued to increase in the second quarter. Adjusted for inflation, livestock loans reached a historical high for the second quarter while the volume of farm machinery and equipment loans has narrowed to the lowest second-quarter level since 2015.
Total loan volumes increased relative to last year, driven primarily by moderate increases in livestock loans. Loans for both feeder and other livestock increased 10 percent from a year ago. In contrast, farm machinery and equipment lending contracted nearly 30 percent, following three consecutive years of increases. Loans to finance farm machinery and equipment make up the smallest category of agricultural loans at commercial banks. Therefore, although the decline in machinery and equipment loans was large, the overall impact on total loan volumes was relatively small. In addition, loans to finance current operating expenses, the largest category of farm loans at commercial banks, declined slightly. However, despite declines in other types of loans, the increase in livestock loans was large enough to boost total loan volumes in the second quarter.
Despite fewer loans being originated in the second quarter, larger loan sizes, particularly for livestock, supported higher total loan volumes. The number of livestock loans originated in the second quarter declined 35 percent, on average, compared to the previous year. However, the average size of loans for feeder livestock and other livestock increased 75 percent and 70 percent, respectively. Larger loans in the livestock sector could be the result of higher prices for feeder and breeding animals in the second quarter and longer-term implications of increasing consolidation.
Alongside significant gains in the first quarter, the average size of livestock loans historically has trended higher. Corresponding to steep declines in market prices for livestock in 2016, the average size of livestock loans declined in 2016 and the first half of 2017 but has rebounded since. In fact, the size of loans to purchase feeder livestock increased back to trend levels in the second quarter of this year. The average size of loans to purchase other livestock has been below trend since the fourth quarter of 2016 but since then has increased for four quarters. Although the actual sizes of livestock loans tend to follow prices for feeder and breeding animals, trend loan sizes could continue to increase in the future due to consolidation.
Consolidation in the livestock sector has led to larger inventories on fewer farms with greater financing needs. For example, in the hog industry, inventories in the last 20 years have grown significantly. Over the same period, the number of hog operations has declined almost 50 percent. Larger inventories on fewer farms indicate that remaining farms have grown and/or consolidated. There also has been consolidation in cattle and other industries, but at a slower pace.1 As the industry transitions to fewer, larger farms, lending needs per farm will be likely to increase.
Increased lending and larger loan sizes in the livestock sector have coincided with higher interest rates on livestock loans. Interest rates on feeder livestock loans have increased 15 percent from last year, and interest rates on loans to finance other livestock have increased 18 percent since the first quarter of 2016. Higher interest rates on larger loans have increased debt obligations for farmers. Although the increase in interest expense has remained relatively small compared with other expenses on farm balance sheets, higher expenses during a period of relatively tighter profit margins (compared to previous years), increased market volatility and trade uncertainty could put additional pressure on some livestock operations.
Section B: First Quarter Call Report Data
Farm debt outstanding continued to increase in the first quarter. Similar to previous quarters, the increase primarily was driven by additional increases in real estate debt. Although the pace of growth in real-estate debt has slowed somewhat from previous years, outstanding loans for farm real estate still were up 5 percent from the previous year. Non-real estate debt also continued to grow but at a slower pace of about 1 percent.
Farm debt at commercial banks also increased from the fourth quarter to the first quarter for the first time since quarterly information was collected in 1987. Loan volumes typically decrease in the first quarter as farmers pay down annual operating lines following seasonal harvest in the fall. More crops in storage seem to have contributed to a shift from typical seasonal trends as farm debt in the first quarter increased 0.2 percent from the previous quarter. Since 2014, stocks of soybeans have doubled, and corn inventories also have increased significantly. Although record levels of crop production have contributed to growing inventories, it also appears that producers are storing larger quantities of grain and oilseeds through the end of the year in hopes that prices will improve.
Growing farm debt also has continued to weigh on liquidity at agricultural banks. Loan-to-deposit ratios at agricultural banks have increased 10 percent since the first quarter of 2013, indicating a modest reduction in available funds. Despite a slight increase in the fourth quarter of 2017, liquidity decreased slightly in the first quarter of 2018 and the loan-to-deposit ratio remained near 80 percent. If farm debt continues to increase while agricultural commodity prices and incomes remain subdued, liquidity may remain tight in the coming months.
Section C: First Quarter Regional Agricultural Data
Similar to national trends, indicators of farm loan demand remained strong in most Federal Reserve Districts, but measures of fund availability have indicated tightening liquidity in some regions. Demand remained relatively steady in the Chicago and St. Louis Districts and was slightly lower in the Kansas City and Minneapolis Districts compared with a year ago. The majority of bankers in the Dallas District continued to report slightly lower demand for farm loans, likely a result of strong cotton markets in recent years. The Dallas and Minneapolis Districts reported slightly higher fund availability, while the prolonged trend of strong farm loan demand may be weighing on liquidity in some areas as measures of funds availability were slightly lower in the Chicago, Kansas City and St. Louis Districts.
Other measures of farm lending across Federal Reserve Districts also remained similar to recent quarters. Similar to a year ago, all Districts reported further increases in loan renewals and extensions, but the pace of growth declined slightly, with the exception of the Dallas District. The rate of loan repayments continued to decrease in all Districts. The pace of decline in repayment rates was relatively steady in the Chicago and Dallas Districts, but slowed across all others, which could be an indication of stabilizing credit conditions relative to prior quarters.
Financial conditions for farmers also showed some signs of steadying in the first quarter. Since reaching historical lows in 2016, farm income has stabilized over the last four quarters in the Minneapolis, Kansas City and St. Louis Districts. Recent declines in the prices of key agricultural commodities could lead to further reductions in farm income, however, and expenses generally have remained elevated. Interest expenses associated with farm loans also increased slightly in the first quarter as interest rates continued to edge higher.
Amid deteriorating credit conditions and increasing interest rates, farm real estate values declined throughout most of the central plains region. While most regions reported only small changes in non-irrigated farmland values compared to the prior year, some others reported modest increases or decreases. The largest annual change was reported in Texas, where the value of non-irrigated cropland increased 9 percent. In contrast, values in both Nebraska and Oklahoma decreased 6 percent. Overall, farmland values have continued to hold relatively steady in comparison to historically weak agricultural credit conditions, and the variations among regions are likely influenced by differences in conditions across individual commodities.
Conclusion
Farm lending activity picked up slightly in the first quarter of 2018 as the size of livestock loans was up sharply from a year ago. Seasonal trends in farm debt outstanding also deviated from historic norms as grain inventories continued to grow through the first quarter. The high demand for farm loans has led to lower liquidity at agricultural banks and at the same time, agricultural lenders have continued to report lower rates of repayment, and interest rates have continued on an upward trend.
Acting EPA Administrator Wheeler Approves Sorghum Oil Pathways Under RFS
Today, as a part of the Renewable Fuel Standard (RFS) program, U.S. Environmental Protection Agency (EPA) issued a final notice approving a variety of pathways for renewable fuel derived from sorghum, including biodiesel. EPA Acting Administrator Andrew Wheeler signed the final pathway alongside Sens. Jerry Moran and Deb Fisher, Rep. Roger Marshall, the National Sorghum Producers, and the American Farm Bureau Federation.
“Today’s approval sets the stage for more homegrown fuels under the Renewable Fuel Standard and adds diversity to our mix of biofuels in the U.S.,” said EPA Acting Administrator Andrew Wheeler. “This is a win for American sorghum farmers and biofuel producers alike.”
“USDA welcomes this decision by EPA that biofuel made from sorghum oil qualifies for advanced biofuel and biomass-based diesel designation under the RFS,” U.S. Secretary of Agriculture Sonny Perdue said. “This decision recognizes the environmental benefits of home-grown renewable energy and will create new markets for agricultural commodities.”
“Kansas farmers are hurting – low commodity prices and falling farm revenue have made it increasingly difficult for producers to make ends meet,” said Senator Jerry Moran (KS). “Approving the pathway is long past due, and I applaud Administrator Wheeler for acting quickly to finalize the pathway after assuming leadership of the agency. It is critical for EPA to recognize the challenges faced by farmers and ranchers and to make certain it pursues biofuel policies that will benefit rural America.”
“More and more farmers are growing sorghum in Nebraska, and it’s an important commodity in our state. EPA’s approval of a sorghum oil fuel pathway under the RFS is good news for Nebraska ag producers and rural America. I look forward to continuing to work with the administration to provide opportunities for Nebraska farmers,” said Senator Deb Fischer (NE).
“This announcement is big for our producers back home. This pathway has been a top issue for our office since I came to Washington. Kansas is the top sorghum producing state in the country; I am elated the EPA has finalized the long-awaited biofuels pathway for Grain Sorghum Oil. This pathway is crucial to not only our sorghum producers, but also our biofuels plants, and our rural economy. Farmers can use all the relief they can get in the midst of growing uncertainty in global markets,” said Representative Roger Marshal (KS-1)l.
“With this decision, EPA is creating an opportunity for sorghum producers to support a new fuel source stream for biofuel production,” said EPA Region 7 Administrator Jim Gulliford. “This is a good news story in helping meet America’s renewable fuels needs while protecting public health and the environment.”
“This is a great day for U.S. sorghum farmers and our partners in the ethanol and biodiesel industries,” said National Sorghum Producers Chairman Don Bloss, a sorghum farmer from Pawnee City, Nebraska. “NSP has worked tirelessly for over two years to make this happen. A pathway for sorghum oil opens new markets for ethanol plants extracting oil from sorghum and ultimately adds value to the grain farmers produce. We thank Acting Administrator Wheeler for taking the step to finalize this pathway and everyone involved in the process that lead to this achievement.”
“Farm Bureau applauds EPA’s approval of an RFS pathway for sorghum biofuel production. At a time when sorghum farmers — like many in U.S. agriculture — are facing tough economic times and uncertainty in key markets, new opportunities like this can go a long way in supporting their bottom line. This new pathway will create an important opportunity for rural America and our farm economy, while strengthening and diversifying U.S. homegrown energy sources,” said American Farm Bureau President Zippy Duvall.
“Kansas produces more sorghum than any other state in the nation,” said Kansas Farm Bureau President Rich Felts. “The oppor tunity to add value to those bushels is critical to our farmers and could not be more timely as we seek any and all methods to balance the books in a tough agricultural climate.”
“Nebraska Farm Bureau supports efforts to expanded market opportunities for Nebraska agricultural commodities, including grain sorghum. EPA’s announcement that sorghum-based biofuel meets emission requirements allowing it to be recognized as an advanced biofuel under the Renewable Fuels Standard (RFS) is a win for Nebraska grain sorghum producers,” said Nebraska Farm Bureau President Steve Nelson.
“We are very pleased the EPA has finalized the RFS pathway for grain sorghum oil biofuel production. This pathway provides a great opportunity for farmers to market their crops and achieve better returns by producing ethanol from grain sorghum. Texas Farm Bureau sincerely thanks Acting EPA Administrator Wheeler and Congressional leaders who made this possible. We look forward to seeing the positive effect this pathway will have on hardworking farm families in Texas and the U.S.,” said Texas Farm Bureau President Russell Boening.
The newly approved pathways include biodiesel, heating oil, jet fuel, heating oil, and liquified petroleum gas produced from sorghum oil, a by-product of ethanol produced from using grain sorghum as a primary feedstock. These pathways meet the greenhouse gas emissions reductions requirements to qualify to generate credits or Renewable Identification Numbers (RINs) for biomass-based diesel and advanced biofuels under the RFS program.
This new feedstock is estimated to produce around 21 million gallons providing flexibility in meeting volume standards of the RFS program. It also adds diversity to the biofuel mix in the country.
The RFS program was created by Congress as a national policy to increase volumes of renewable fuel to replace or reduce the consumption of petroleum-based transportation fuel, heating oil, or jet fuel. EPA implements the program in consultation with U.S. Department of Agriculture and the U.S. Department of Energy.
EPA Approves Sorghum Oil Pathway
Environmental Protection Agency Administrator Andrew Wheeler approved sorghum oil as an eligible feedstock under the Renewable Fuel Standard during a signing event today at EPA headquarters in Washington, D.C., with National Sorghum Producers leadership and Senators Jerry Moran (R-KS) and Deb Fischer (R-NE) and Congressman Roger Marshall (R-KS).
The EPA’s announcement marks a significant step toward leveling the playing field for ethanol plants extracting oil from sorghum. NSP worked closely with the EPA for over two years to establish a biofuels pathway for sorghum oil in the RFS, and this announcement provides new market access for the crop.
“This is a great day for U.S. sorghum farmers and our partners in the ethanol and biodiesel industries,” said NSP Chairman Don Bloss, a sorghum farmer from Pawnee City, Nebraska. “NSP has worked tirelessly for over two years to make this happen. A pathway for sorghum oil opens new markets for ethanol plants extracting oil from sorghum and ultimately adds value to the grain farmers produce.”
In December 2017, the EPA released a notice of proposed rulemaking (NPRM) concerning renewable fuels produced from sorghum oil under the RFS program followed by a 30-day comment period. EPA’s analysis showed biodiesel produced from sorghum oil has greenhouse gas (GHG) emissions savings of 82 percent. This will give ethanol plants extracting oil from sorghum access to sell into the biodiesel market.
“This pathway for sorghum oil reaches far beyond the farmer,” said Tom Willis, NSP board director and CEO of Conestoga Energy. “This is an avenue for creating jobs in rural America we so desperately need, and it helps provide energy security from a renewable water-conserving source.”
In addition to the nine ethanol producers already extracting oil from sorghum, several other facilities will now be able to purchase and use sorghum. The pathway also makes possible additional investments in fuel infrastructure in the Sorghum Belt.
“We owe a significant amount of gratitude to several individuals and entities for making this possible,” NSP CEO Tim Lust said. “This includes EPA Acting Administrator Andrew Wheeler and his staff, Secretary of Agriculture Sonny Perdue, Senators Jerry Moran, Deb Fischer, Pat Roberts, Roy Blunt, Clair McCaskill, and Ben Sasse and Congressmen Roger Marshall, Jodey Arrington, Kevin Yoder, Mac Thornberry, Adrian Smith, Lynn Jenkins, Frank Lucas, Tom Cole and Blake Farenthold who all signed support letters and made phone calls on our behalf. We also extend our thanks to ethanol trade groups and numerous ethanol plants, fuel marketers and technology providers. This wide swath of support was key to this effort, and we sincerely appreciate the leadership of each one.”
Fischer Joins Acting EPA Administrator to Announce Approved Fuel Pathway for Sorghum Oil
U.S. Senator Deb Fischer, a member of the Senate Agriculture Committee, issued the following statement today after participating in an event at the Environmental Protection Agency (EPA) to announce an approved fuel pathway for grain sorghum under the Renewable Fuel Standard (RFS):
“More and more farmers are growing sorghum in Nebraska, and it’s an increasingly important commodity in our state. EPA’s approval of a sorghum oil fuel pathway under the RFS is good news for Nebraska ag producers and rural America. I look forward to continuing to work with the administration to provide opportunities for Nebraska farmers.”
Nebraska is the largest ethanol producing state west of the Missouri River, with 25 active ethanol plants that have an annual production capacity of over 2 billion gallons. These plants represent more than $5 billion in capital investment and provide direct employment for approximately 1,300 Nebraskans. The RFS, coupled with the pathway approval for grain sorghum oil, provides growers a way forward to promote the benefits of biofuels. In March 2017, Fischer joined her Senate colleagues in a letter requesting the EPA to expedite this pathway approval.
Growth Energy Applauds EPA Approval of Sorghum Oil for Biofuel Feedstock
Growth Energy, the nation’s top ethanol advocate, applauded the Environmental Protection Agency's (EPA) announcement that it approved a Renewable Fuel Standard (RFS) pathway for sorghum oil to be used as a feedstock for biodiesel and other renewable fuel. Growth Energy CEO Emily Skor released the following statement:
"This is long over-due and very welcome news for the renewable fuels industry. Growth Energy, our member plants, and the National Sorghum Producers have been working side by side and pushing hard for this change for more than five years. We are thrilled to see our efforts become a reality for numerous ethanol producers using grain sorghum to produce ethanol, and for the opportunity to open up additional markets in a struggling agricultural economy."
Livestock Groups Highlight Misuse of Environmental Laws
Cattle and sheep producers today warned Congress that environmental laws are increasingly being misused by fringe activist groups and pose a growing threat to grazing on federal lands. Their testimony came at a hearing held by the House Oversight and Government Reform Subcommittee on the Interior, Energy, and Environment today held a hearing titled Preserving Opportunities for Grazing on Federal Land. This hearing comes in response to mounting challenges faced by ranchers who graze livestock on federal land and the opportunities for productive range management practices.
The testimonies of Dave Eliason, a fourth-generation Utah cattle producer testifying on behalf of the National Cattlemen’s Beef Association and Public Lands Council, and John Helle, a third-generation sheep and wool producer from Montana testifying on behalf of the American Sheep Industry Association, pointed out that litigation through the National Environmental Policy Act (NEPA) and the Equal Access to Justice Act (EAJA) has become an unavoidable obstacle for ranchers seeking to put conservation benefits on the ground.
For the sheep industry, a major example has been the loss of grazing over conflicts with agenda-driven activists. Helle has personally been impacted as pathogen transmission concerns without scientific basis have been used to enforce separation between domestic and bighorn sheep on the Gravely Mountain range of Southwest Montana.
“Our reward for working cooperatively with our state fish and game agency to introduce bighorn sheep was to be subject to what is now going on three years of costly federal litigation,” Helle said. “And, if we are to ultimately lose the litigation, we are subject to losing our ability to graze the lands we have grazed for multiple generations. I cannot imagine this scenario is what Congress envisioned when it passed the National Environmental Policy Act.”
Another issue impacting farmers and ranchers across the entire United States is the Endangered Species Act (ESA), a law Eliason said has been used as a weapon by extreme environmental groups.
“This litigation-driven focus on listings has derailed true species conservation efforts and rendered the current ESA largely dysfunctional,” Eliason, President of the PLC, said. “While well-intended when first passed over forty years ago, the ESA has evolved into the favorite weapon of these habitual litigants.”
These litigants include the Center for Biological Diversity, Defenders of Wildlife, and WildEarth Guardians, which are responsible for 46 percent of active petitions under the ESA. Eliason cites the gray wolf as an a species these groups have used to target the livestock community.
“Despite following the process, doing their homework, and going through the full delisting process, FWS was immediately litigated on their final rule. That litigation ultimately resulted in the rule being overturned,” Eliason said. “As a result, the gray wolf remains listed to this day despite exploding populations and increasing predation issues. That’s not science, it’s a hijacking.”
The American Sheep Industry, National Cattlemen’s Beef Association, and Public Lands Council recognize the unique roles the livestock industry plays in federal land management and continues to advocate for greater flexibility to manage for conditions on the ground.
USDA Assists Farmers Impacted by Unjustified Retaliation
U.S. Secretary of Agriculture Sonny Perdue today announced that the U.S. Department of Agriculture (USDA) will take several actions to assist farmers in response to trade damage from unjustified retaliation. President Trump directed Secretary Perdue to craft a short-term relief strategy to protect agricultural producers while the Administration works on free, fair, and reciprocal trade deals to open more markets in the long run to help American farmers compete globally. Specifically, USDA will authorize up to $12 billion in programs, which is in line with the estimated $11 billion impact of the unjustified retaliatory tariffs on U.S. agricultural goods. These programs will assist agricultural producers to meet the costs of disrupted markets.
“This is a short-term solution to allow President Trump time to work on long-term trade deals to benefit agriculture and the entire U.S. economy,” Secretary Perdue said. “The President promised to have the back of every American farmer and rancher, and he knows the importance of keeping our rural economy strong. Unfortunately, America’s hard-working agricultural producers have been treated unfairly by China’s illegal trading practices and have taken a disproportionate hit when it comes illegal retaliatory tariffs. USDA will not stand by while our hard-working agricultural producers bear the brunt of unfriendly tariffs enacted by foreign nations. The programs we are announcing today help ensure our nation’s agriculture continues to feed the world and innovate to meet the demand.”
Background: Of the total unjustified retaliatory tariffs imposed on the United States, a disproportionate amount was targeted directly at American farmers. Trade damage from such retaliation has impacted a host of U.S. commodities, including field crops like soybeans and sorghum, livestock products like milk and pork, and many fruits, nuts, and other specialty crops. High tariffs disrupt normal marketing patterns, affecting prices and raising costs by forcing commodities to find new markets. Additionally, there is evidence that American goods shipped overseas are being slowed from reaching market by unusually strict or cumbersome entry procedures, which can affect the quality and marketability of perishable crops. This can boost marketing costs and discount our prices, and adversely affect our producers. USDA will use the following programs to assist farmers:
The Market Facilitation Program, authorized under The Commodity Credit Corporation (CCC) Charter Act and administered by Farm Service Agency (FSA), will provide payments incrementally to producers of soybeans, sorghum, corn, wheat, cotton, dairy, and hogs. This support will help farmers manage disrupted markets, deal with surplus commodities, and expand and develop new markets at home and abroad.
Additionally, USDA will use CCC Charter Act and other authorities to implement a Food Purchase and Distribution Program through the Agricultural Marketing Service to purchase unexpected surplus of affected commodities such as fruits, nuts, rice, legumes, beef, pork and milk for distribution to food banks and other nutrition programs.
Finally, the CCC will use its Charter Act authority for a Trade Promotion Program administered by the Foreign Agriculture Service (FAS) in conjunction with the private sector to assist in developing new export markets for our farm products.
Fischer on Administration’s Plan for Aid to Farmers
U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today on reports that the Trump administration will soon announce a plan to provide $12 billion in emergency aid to farmers:
“I appreciate that the president is recognizing the economic hardship our farmers and ranchers are facing, but I believe we need a solution that provides certainty by protecting and expanding market access for our ag producers.”
Sasse Statement on Trade War Bailouts
U.S. Senator Ben Sasse, an outspoken advocate for trade and American agriculture, issued the following statement regarding the White House's plan to spend $12 billion on trade-war bailouts.
“This trade war is cutting the legs out from under farmers and White House’s ‘plan’ is to spend $12 billion on gold crutches. America’s farmers don’t want to be paid to lose – they want to win by feeding the world. This administration’s tariffs and bailouts aren’t going to make America great again, they’re just going to make it 1929 again.”
Statement by Steve Nelson, President, Regarding USDA Assistance to Farmers, Ranchers from Retaliatory Tariffs
“While we appreciate the President’s recognition that trade tariffs are impacting markets for farmers and ranchers, our preference has and continues to be that the administration focus on market access for agriculture commodities, not government assistance to help mitigate market losses. Negotiation, not tariffs, provide the best path toward solving trade issues, particularly as it relates to our allies in Canada and Mexico. Furthermore, we are more than 18 months removed from U.S. withdraw from the Trans Pacific Partnership (TPP). At that time the President indicated he would work to secure bi-lateral trade agreements with these partners. That has not happened. It is critical the administration work to secure agreements with Japan and other TPP member nations that reflect critical markets for Nebraska farm and ranch families.”
NAIG STATEMENT ON TRUMP'S TRADE MITIGATION PLAN
Iowa Secretary of Agriculture Mike Naig issued the following statement on President Trump's announcement of federal aid to agricultural producers. The Trump administration on Tuesday announced up to $12 billion in emergency relief for farmers.
“These programs recognize the market challenges our farmers are facing today, and will provide some temporary assistance. What we need is certainty when it comes to our trade relationships. We continue to urge the administration for the swift resolution of our trade negotiations with China and our NAFTA trading partners, as well as pursuing new trade agreements. As I travel the state I continue to hear Iowa farmers want more trade, not aid.”
STATEMENT FROM ICGA PRESIDENT MARK RECKER ON PRESIDENT TRUMP’S “TRADE ASSISTANCE PROPOSAL”
The Trump administration announced today it will provide $12 billion dollars in aid to farmers hurt by the ongoing tariffs and trade uncertainty. The U.S. Department of Agriculture will use their authority under the Commodity Credit Corporation to authorize a market facilitation program, a food distribution program and a trade promotion program to stabilize the agricultural economy during times of turmoil. We appreciate President Trump and his administration hearing farmers’ concerns and understanding the dire situation that many of us now face.
Our state has enjoyed a long-standing and prosperous trading relationship with many countries around the world. Iowa corn farmers have worked for decades to support fair and open trade practices because we understand the value of trade.
When politics or market forces beyond farmers’ control put their business at risk, the government can and should consider initiatives to keep family farmers on the farm. As farmers, we want access to markets, which will allow us the ability to compete on a level playing field but support these payments if this stands as our only recourse. We will continue to monitor the details of this proposal as it comes together.
Ultimately, resolving trade differences and repairing relationships with our trading partners must be our top priority because much of the demand for our corn lies outside our state and our country’s borders so fair and open trade remains the key.
We look forward to working with the Trump Administration on reaching a final agreement on the North American Free Trade Agreement and other trade negotiations, so farmers have long-term certainty in the marketplace, and so we can build upon the trade successes we have already achieved under many other free trade agreements.
President Announces Short-Term Plan to Help Farmers, ASA Hopeful It’s Step One in Long-Term Tariff Solution
President Trump announced on Tuesday that the Department of Agriculture would be rolling out a relief plan this fall for farmers hit hard by trade tariffs imposed in recent months. Since discussion of a tit-for-tat exchange of tariffs between the U.S. and China became serious in late May, U.S. soy prices have dropped more than $2.00 per bushel.
The President has vowed for weeks that he would “take care” of farmers, but the American Soybean Association (ASA) and other agriculture groups did not know until today what that help would look like. The plan outlined by the Administration includes three components: Direct payments to farmers to mitigate lower prices resulting from China’s tariffs, direct commodity purchases by USDA, and funding for a temporary program similar in purpose to the current Market Access Program (MAP) and Foreign Market Development (FMD) programs. The cost of the package is expected to total around $12 billion spread across multiple commodities, including soybeans.
While soybean growers appreciate the Administration’s recognition that tariffs have caused reduced exports and lower prices, the announced plan provides only short-term assistance. ASA continues to call for a longer-term strategy to alleviate mounting soybean surpluses and continued low prices, including a plan to remove the harmful tariffs.
John Heisdorffer, ASA President and soybean grower from Keota, Iowa, stated, “Our best course of action is to expand other markets and develop new ones to buy the soybeans we’re not selling to China. This means finishing the NAFTA negotiations as soon as possible so we can begin talks on new bilateral agreements with other key soybean markets including Japan, Vietnam, Indonesia and the Philippines.”
Soybean farmers are facing an urgent situation this fall, with a near-record harvest expected and exports predicted to be down by 11 percent next year. That situation will worsen without long-term answers to the pinch of tariffs—or seeing the tariffs rescinded.
“The American Soybean Association has consistently advised the Administration that the best way to reduce our Nation’s trade deficit is by increasing exports, including of agricultural products,” Heisdorffer stated. “Since the Administration has decided to use tariffs to address trade concerns with China, and China has retaliated, farmers don’t have time to wait to see how this trade war turns out.”
In 2017, China imported 31% of U.S. production, equal to 60% of total U.S exports and nearly 1 in every 3 rows of harvested beans, making solutions to the tariff war critical for the soybean industry.
Heisdorffer concluded that, “U.S. soybean producers want to see President Trump succeed in meeting his trade campaign goals of achieving better trade deals and greater market access. And, we appreciate that he has recognized our loss in exports and lower prices and provided some immediate relief. However, producers cannot weather sustained trade disruptions.”
NCGA Statement on USDA Trade Aid
North Dakota farmer Kevin Skunes, president of the National Corn Growers Association (NCGA), made the below statement following this afternoon’s USDA announcement of an aid package for farmers negatively impacted by trade tariffs and ongoing trade uncertainty.
“NCGA appreciates the Administration’s recognition of the harm to producers caused by tariffs and trade uncertainty. The fine print will be important. We know the package won’t make farmers whole but look forward to working with USDA on the details and implementation of this plan.
“NCGA’s grower members are confronting their fifth consecutive year of declining farm incomes while facing high levels of uncertainty due to ongoing trade disputes and disruptions in the ethanol markets. Corn farmers prefer to rely on markets, not an aid package, for their livelihoods.
“NCGA will continue to advocate for Administrative actions including: rescinding the section 232 and 301 tariffs; securing NAFTA’s future; entering new trade agreements; allowing for year-round sales of higher ethanol blends such as E15; and implementing the Renewable Fuel Standard as intended. We believe these additional actions, which would come with no cost, would result in stronger market demand for farmers.”
Wheat Organizations Continue to Support an End to Trade War as Administration Offers Help for Farmers
The Trump Administration announced today that it would provide $12 billion to help farmers cope with the results of the current trade dispute ignited by new U.S. tariffs.
U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are glad that the Administration recognizes farming as a risky business and acknowledges that farmers need help to manage the additional risk from its trade policies. However, our concerns still lie in a lengthy trade war that will cause long-term, irreparable harm to U.S. agriculture. We urge the Administration to recognize this self-inflicted damage and to end the trade war immediately as well as to work within the rules-based trading system in partnership with like-minded countries to address serious problems in the global economy.
While tariffs aren’t the answer, the wheat industry greatly appreciates the Administration’s efforts to push back on China’s unfair trade practices through dispute settlement cases at the World Trade Organization. The policies being challenged hurt U.S. farmers and have undermined trust in the rules-based trading system. President Trump understands that the farm economy is struggling and is working to improve the livelihoods of growers across the country through these efforts.
Agriculture needs strong trading partners, so we also encourage the Administration to rejoin the Trans-Pacific Partnership and finalize NAFTA negotiations so that the U.S. Trade Representative can focus on new trading partners that will be as important as ever. These actions will have lasting benefits to wheat growers across the country.
To repeat, this damage is self-afflicted, so the Administration is right to take steps to address it, but the next step should be ending the trade war. We will also be closely engaged with Administration officials as the details of the announcement made today are developed.
USDA Offers Trade Relief Funds to Farmers
National Sorghum Producers Legislative Committee Chairman and board director Dan Atkisson, a sorghum farmer from Stockton, Kansas, made the following statement in response to U.S. Department of Agriculture Secretary Sonny Perdue’s announcement today regarding trade relief payments for farmers through the Market Facilitation Program.
“National Sorghum Producers appreciates the hard work USDA Secretary Sonny Perdue and U.S. officials have done to advocate on behalf of farmers through ongoing trade disputes. We respect the Administration for following through with their promise to stand by U.S. farmers, and we look forward to working with Secretary Perdue in providing much needed funds to sorghum farmers and other producers impacted by tariffs. NSP fully supports fairer and open trade and will continue to work with officials to achieve long-term trade solutions. U.S. sorghum farmers have faced tremendous uncertainty since February 2018, and this program will lessen some of that uncertainty and provide relief in rural America where it is needed most.”
Trade Assistance Package a Welcome Measure of Short-Term Relief, Farm Bureau Says
Agriculture Secretary Sonny Perdue today announced USDA will authorize up to $12 billion for programs to help farmers and ranchers caught in the crossfire of a tariff war. The funding is in line with the estimated $11 billion impact of the retaliatory tariffs on U.S. agricultural goods, according to USDA.
The agricultural assistance package will provide a welcome measure of temporary relief to farmers and ranchers who are experiencing the financial squeeze of a trade tit-for-tat, American Farm Bureau Federation President Zippy Duvall said in a statement.
“This should help many of our farmers and ranchers weather the rough road ahead and assist in their dealings with their financial institutions. We are grateful for the administration’s recognition that farmers and ranchers needed positive news now and this will buy us some time,” Duvall said.
He continued, “This announcement is substantial, but we cannot overstate the dire consequences that farmers and ranchers are facing in relation to lost export markets. Our emphasis continues to be on trade and restoring markets, and we will continue to push for a swift and sure end to the trade war and the tariffs impacting American agriculture.”
USDA intends to use the Market Facilitation Program to provide payments incrementally to producers of soybeans, sorghum, corn, wheat, cotton, dairy and hogs. In addition, the department will implement a food purchase and distribution program through the Agricultural Marketing Service to purchase unexpected surplus of affected commodities such as fruits, nuts, rice, legumes, beef, pork and milk for distribution to food banks and other nutrition programs. Finally, the Foreign Agriculture Service, in conjunction with the private sector, will assist in developing new export markets for U.S. farm products.
Reducing Trade Barriers, Regulatory Burdens Will Ease Tariff Pain
Today Kent Bacus, Director of International Trade for the National Cattlemen's Beef Association, released the following statement in response to the Trump Administration’s announcement of trade aid for U.S. farmers and ranchers:
“NCBA looks forward to reviewing the details of the Trump Administration's trade retaliation relief package. Trade agreements and trade enforcement are the most effective long-term solutions to the challenges faced by U.S. beef producers. For many years, U.S. beef has been a target of high tariffs and restrictive trade policies from notorious actors like China and the European Union. We support a vigorous approach to tearing down trade barriers, including non-tariff barriers that are not based on science.
"Removing China’s highly-restrictive barriers on U.S. beef exports could unlock the full potential of that market and result in $4 billion in annual sales. Here at home, beef producers need relief from onerous federal regulations that undermine their businesses. Let’s start by fixing the restrictive hours-of-service rules for livestock haulers, modernizing the Endangered Species Act, and ending the 2015 Waters of the United States rule once and for all.”
NMPF Welcomes Assistance to Dairy Farmers Suffering Economic Losses from Retaliatory Tariffs
The new tariff mitigation program announced Tuesday by the Trump Administration should provide badly needed economic assistance to dairy farmers facing significant financial losses, the National Milk Producers Federation said today.
The U.S. Department of Agriculture (USDA) announced today that it is preparing a $12 billion economic assistance program designed to help dairy farmers and other agricultural producers suffering from the effects of retaliatory tariffs imposed by Mexico, China and other key trading partners. NMPF’s economic estimates indicate that these tariffs will cost U.S. dairy farmers $1.8 billion just through the remainder of this year, based on the decline in milk futures prices since the retaliatory tariffs were implemented.
“We appreciate the president following through on his pledge that America’s farmers won’t bear the brunt of the economic losses generated by the current trade conflicts,” said Jim Mulhern, president and CEO of NMPF. “Today’s announcement reflects requests that our organization has made of USDA to relieve some of the financial pain dairy farmers are feeling due to lost export opportunities.”
NMPF has been engaged in ongoing discussions with USDA about how to reduce the economic harm caused by the trade disagreements between the United States and other nations. The plan announced today will use USDA’s authority to help farmers through a combination of direct payments to farmers, milk product purchases for distribution to feeding programs, and additional export development assistance. Further details about the exact nature of the relief measures will be unveiled later in the summer, USDA officials said.
“We thank the administration for incorporating our recommendations. We will continue working with USDA on program details to achieve provisions that are efficient, cost-effective and equitable to farmers of all sizes in all regions,” Mulhern said.
NMPF is also encouraging the administration to conclude the North American Free Trade Agreement (NAFTA) negotiations and pursue new trade opportunities, “which is the long-term solution to the current situation. We need this assistance for now, but we also need new trade deals that allow our farmers to reach customers in other nations,” Mulhern said.
Trade Aid for Farmers — Farmers Union Urges Long-Term Fix
The Trump administration today announced a $12 billion plan to provide emergency aid to farmers amidst an escalating trade war with China and other trading partners. The plan will include direct assistance, a food purchase and distribution program, and a trade promotion program.
National Farmers Union (NFU), the nation’s second largest general farm organization, urged the administration to do more to provide a long-term fix to the long-term damage of the trade war. The group supports the president’s efforts to improve fair trade relationships with trading partners, yet has grown weary of the administration’s go-it-alone, bull-in-a-china-shop approach.
NFU President Roger Johnson issued the following statement in response to the announcement:
“President Trump’s escalating trade war with China and much of the rest of the world requires that we go to significant lengths to protect the men and women who grow our food, fuel and fiber. Their livelihoods are on the line with every tweet, threat or tariff action that comes from the White House. Market prices for farm products are plunging from already very low levels, and it’s been estimated that farmers lost more than $13 billion last month alone due to trade disruptions.
“While we appreciate the move to provide stopgap assistance, this plan is a short-term fix to a long-term problem. The administration must develop a support mechanism that will mitigate the significant damage that is being inflicted upon our most vital international markets for years to come. They should do this by working with Congress to ensure farm bill programs provide enough assistance to farmers when markets collapse.”
Statement of NCFC President Chuck Conner on Announcement of Emergency Trade Assistance for Agriculture
“I would like to commend Secretary of Agriculture Sonny Perdue for spearheading the Administration’s efforts to deliver assistance to farmers, ranchers and growers facing losses due to retaliatory tariffs imposed by some of our trading partners. The $12 billion in aid using existing Commodity Credit Corporation authority will help producers impacted by these tariffs to weather the storm in the short term. We look forward to working with the Secretary and USDA over the next month as the details of the three programs unveiled today developed.”
Short-Term Relief Package a "Missed Opportunity"
Growth Energy, the nation’s top ethanol advocate, issued the following statement from CEO Emily Skor after the U.S. Department of Agriculture's (USDA) announced it's short-term relief strategy for farmers:
“Once again, this administration has missed an opportunity to provide long-term relief to farmers by increasing domestic demand through RVP relief. Allowing year-round sales of higher blend fuels such as E15 is one way to address sales lost because of new tariffs and provide increased certainty for farmers and producers. We will continue encouraging the President and his administration to uphold his promise of supporting farmers and rural Americans by following through on allowing the year-round sale of higher blend fuels."
Growth Energy is running a television ad asking President Trump to uphold his promise to farmers by allowing the sale of E15 year-round.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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