Wednesday July 18 Ag News

Ricketts Announces Furnas County as Newest Nebraska Livestock Friendly County

Today, Governor Pete Ricketts announced Furnas County as the newest county in Nebraska to be designated a Livestock Friendly County (LFC).  The Livestock Friendly County program is administered by the Nebraska Department of Agriculture (NDA).  With the addition of Furnas County, located in south-central Nebraska, 46 of the state’s 93 counties are now designated as livestock friendly.

“County fairs are a great place to promote agriculture, so I’m especially pleased to be here today to announce Furnas County’s livestock-friendly status,” said Governor Ricketts.  “By becoming a Livestock Friendly County, Furnas County is showing that they are open for business and eager to grow opportunities for the next generation of farm and ranch families.”

According to the U.S. Department of Agriculture, Furnas County had a total of $181 million in market value of agriculture products for the year 2012.  Livestock sales accounted for $83 million, or 46 percent of the total value, with cattle/calves and hogs being the largest livestock segments in the county.  Crop production accounted for $98 million, or 54 percent of the total value.  Major crops raised in Furnas County include corn, soybeans, and wheat.

“Furnas County is home to nearly 390 farms and many businesses that are tied to agriculture, including ethanol, elevators, feedlots, banking, insurance, equipment, and supplies,” said Steve Martin, Ag Promotion Coordinator with the NDA.  “Those businesses show how growth and development in the livestock industry can create more economic activity and job opportunities in the county.”

The Livestock Friendly County program was created by the Nebraska Legislature in 2003 to recognize counties that support the livestock industry and new livestock developments.  A county wishing to apply for the LFC designation must hold a public hearing, and the county board must pass a resolution to apply for the designation.  Additional information about the Livestock Friendly County program is available on NDA’s website at nda.nebraska.gov or by calling 800-422-6692.



REMINDER: FARMERS ENCOURAGED TO APPLY NOW FOR COST-SHARE FOR COVER CROPS, NO-TILL/STRIP-TILL AND NITRIFICATION INHIBITOR

Iowa Secretary of Agriculture Mike Naig today reminded Iowa farmers that funds are available to help install practices focused on protecting water quality.  Practices eligible for this funding are cover crops, no-till or strip till, or using a nitrification inhibitor when applying fertilizer.

The cost share rate for first-time users of cover crops is $25 per acre, no-till or strip till are eligible for $10 per acre and farmers using a nitrapyrin nitrification inhibitor when applying fall fertilizer can receive $3 per acre. Farmers are eligible for cost share on up to 160 acres.

First-time users that apply by July 27 will be the first applications funded.  First-time users that apply after July 27 will still receive priority consideration, but funds will also be made available to farmers that have used cover crops in the past for cost share assistance at $15 per acre.

“We already have $1.3 million in applications from more than 600 new farmers interested in trying a practice for the first time to better protect water quality. We encourage farmers that are interested to contact their local Soil and Water Conservation District office as soon as possible to learn more about the assistance that is available,” Naig said.

The 100 Soil and Water Conservation District offices located in each county across the state have information about this program and other opportunities for cost share funding.

Background on Iowa Water Quality Initiative
The Iowa Water Quality Initiative was established in 2013 to help implement the Nutrient Reduction Strategy, which is a science and technology based approach to achieving a 45 percent reduction in nitrogen and phosphorus losses to our waters.  The strategy brings together both point sources, such as municipal wastewater treatment plants and industrial facilities, and nonpoint sources, including farm fields and urban stormwater runoff, to address these issues.

The Initiative seeks to harness the collective ability of both private and public resources and organizations to deliver a clear and consistent message to stakeholders to reduce nutrient loss and improve water quality.

The initiative is seeing some exciting results. Last fall, 2,600 farmers invested an estimated $8.7 million in funding to match $4.8 million in state cost share funds to adopt cover crops, no-till or strip till, or use a nitrification inhibitor when applying fall fertilizer. Participants include 1,000 farmers using a practice for the first time and more than 1,600 past users who are trying cover crops again and are receiving a reduced rate of cost share.

A total of 65 demonstration projects are currently located across the state to help implement and demonstrate water quality practices. This includes 14 targeted watershed projects, 7 projects focused on expanding the use and innovative delivery of water quality practices and 44 urban water quality demonstration projects.   More than 250 organizations are participating in these projects. These partners will provide $37.7 million to go with the $23.4 million in state funding going to these projects.

More than $420 million in funding has been documented for efforts in support of the Iowa Nutrient Reduction Strategy last year. This represents a $32 million increase of funding in support of Iowa water quality programs and conservation efforts over the previous year.

More information about the initiative can be found at www.CleanWaterIowa.org. 



NCGA Elects Five Growers to Serve on the Corn Board in FY19

Delegates attending the National Corn Growers Association’s Corn Congress in Washington this morning elected five farmers to serve on the organization’s Corn Board. Taking office on Oct. 1, the start of NCGA’s 2019 fiscal year, are new board members Deb Gangwish of Nebraska, Dennis Maple of Indiana and Harold Wolle, Jr. of Minnesota. Current board members Bruce Rohwer of Iowa and Jeff Sandborn of Michigan were re-elected. Gangwish, Maple, Rohwer and Wolle were elected to three-year terms. Sandborn will serve the unexpired one-year term left open by Kevin Ross, NCGA’s first vice president elect for Fiscal Year 2019.

“NCGA had a remarkable slate of candidates for the Corn Board, with many growers who already have an impressive history of service to American agriculture,” NCGA Chairman Wesley Spurlock, who chairs the nominating committee, said. “It encourages me to see such an interest on the part of these growers, particularly at this time when our industry faces so many challenges. I am certain they will be a valuable addition to the board and look forward to see what they do for corn farmers in the years to come.”
 
The NCGA Corn Board represents the organization on all matters while directing both policy and supervising day-to-day operations. Board members represent the federation of state organizations, supervise the affairs and activities of NCGA in partnership with the chief executive officer and implement NCGA policy established by the Corn Congress. Members also act as spokesmen for the NCGA and enhance the organization’s public standing on all organizational and policy issues.



NCGA Calls on EPA to Account for Refinery Waivers

The National Corn Growers Association (NCGA) today called for EPA to maintain a strong, equitable Renewable Fuel Standard (RFS) that follows Congressional intent and levels the playing field for America’s farmers by using the annual volume rule to repair the damage from extensive refinery exemptions.

Michigan farmer Russell Braun provided testimony on behalf of NCGA during an Environmental Protection Agency (EPA) hearing on the agency’s proposed biofuel targets for 2019.

“With corn prices low, EPA’s decisions have a greater impact on my livelihood and other farmers’ as well.  We believe EPA should use the Renewable Fuel Standard volume rule to remedy the harm caused by the extensive retroactive exemptions given to refineries over the past year and ensure future exemptions are accounted for. These refinery exemptions decrease ethanol blending and reduce demand and profits for my corn crop. Every gallon of renewable fuel blending waived by EPA reduces the consumer benefits of the RFS.”

EPA’s proposal supports some growth in the RFS volumes and continues to propose an implied 15-billion-gallon volume for conventional ethanol. However, the proposed rule allows for retroactive refinery exemptions, without reallocating those waived gallons, undercutting the volume targets and rendering the proposed blending levels meaningless. In the past year, EPA has retroactively waived 2.25 billion ethanol equivalent-gallons from the 2016 and 2017 volumes through 48 refinery exemptions, many of which went to refineries owned by large, profitable companies.

“The EPA should end the practice of granting unjustified RFS waivers behind closed doors and uphold the strong biofuel targets promised by President Trump. America's corn growers are ready and able to do our part to increase American energy use and production, and hold down prices at the fuel pump,” said NCGA President and North Dakota farmer Kevin Skunes. “EPA needs to listen to farmers comments, account for the waivers and make the RFS whole.”

Because many corn farmers are in Washington this week for NCGA’s Corn Congress and meetings with Members of Congress and unable to attend the Michigan public hearing, farmer delegates at Corn Congress took the opportunity to submit their comments to EPA online this morning.  Farmers across the country can join this effort by visiting http://www.standupforcorn.com/take-action.html to “Tell EPA to Restore the RFS.”



ACE leadership testifies on proposed 2019 RVOs

The American Coalition for Ethanol (ACE) senior vice president Ron Lamberty testified today during the public hearing in Ypsilanti, Michigan, on the Environmental Protection Agency’s (EPA) proposed Renewable Volume Obligations (RVOs) for the 2019 Renewable Fuel Standard (RFS).

Lamberty’s testimony highlights points which will be detailed in ACE’s written comments to the proposed rule. The issues include: (1) EPA’s overall approach to enforcing the RFS; (2) conventional biofuel levels; and (3) the effective working of the RIN marketplace. ACE’s full comments will also address our concerns about cellulosic and advanced biofuel targets.

“With the departure of the previous EPA Administrator, I hope EPA will take this opportunity to return to implementing the RFS as intended by Congress,” Lamberty said. “Pruitt’s seemingly sole focus on helping merchant refiners ignore or skirt their longstanding obligations under the RFS has further shaken the rural farm economy while undermining Congress’ goal of increasing renewable fuel use in the United States.”

“EPA’s misapplication of the small refiner waiver authority has destroyed an estimated 2.25 billion gallons of biofuel demand in 2016 and 2017 alone,” Lamberty added. “The 2019 proposal does nothing to reallocate the gallons of ethanol lost due to RFS waivers, nor does it restore the 500 million gallons of biofuel demand lost because of EPA’s actions in misapplying the economic harm waiver in the 2016 RVO as determined by the courts that ordered EPA to return those gallons as well.  This RVO rulemaking is the perfect place for EPA to restore these biofuel volumes under the RFS, allow for E15 and higher blends to be sold year-round, and discard of its refiner win-at-all-costs mentality.”

As a veteran of nearly 40 years of owning and operating convenience stores, Lamberty has spent nearly two decades at ACE, providing logistical and marketing expertise to petroleum marketers who are interested in selling ethanol-blended fuel, as well as those who already sell flex fuel. This expertise makes Lamberty uniquely qualified to help EPA understand that strong blending targets are needed to help restore confidence to the rural economy and reassure retailers it makes sense to offer E15 and flex fuels to their customers. As such, Lamberty can also offer valuable insight on how marketers and wholesalers have been able to handle Renewable Identification Numbers (RINs) and RINless gallons to encourage the sale of higher ethanol blends.

EPA’s comment period on the proposed RVOs closes on August 17.



NBB, Biodiesel Producers Ask EPA to Raise RFS Volumes and Ensure They Are Met

Today, executives from the National Biodiesel Board (NBB) and its member companies are testifying at the Environmental Protection Agency’s (EPA) Public Hearing for Proposed Renewable Fuel Standards (RFS) for 2019 and Biomass-Based Diesel Volume for 2020. NBB and its members ask EPA to set the 2020 Biomass-based Diesel volume at 2.8 billion gallons, based on the agency’s own analysis in the proposed rule showing that volume is achievable next year. The agency must also reduce the uncertainty it has caused by issuing retroactive small refiner hardship exemptions, the industry told EPA staff.

Donnell Rehagen, CEO of the National Biodiesel Board (NBB), testified, “To provide the certainty that the biodiesel industry needs, EPA should raise the 2020 volume for biomass-based diesel to at least 2.8 billion gallons. That number better aligns with the goals that Congress set for the RFS program. And it will better fulfill the promise of the RFS program.”

Kurt Kovarik, Vice President of Federal Affairs with NBB added, “I appreciate the agency’s recognition that the biodiesel industry has proven year after year that it can deliver increasing volumes. At the same time, I would like to emphasize that the volumes EPA finalizes will be meaningless, if the agency continues to retroactively reduce them through refinery exemptions.”

Kent Engelbrecht, Biodiesel Trade Manager at Archer Daniels Midland and NBB Board Chairman, stated, “There are many positive elements in this proposal for which we applaud EPA. But these are rendered meaningless unless EPA accounts for waived gallons to make sure the RVO’s are real numbers.”

EPA has estimated that the small refinery hardship exemptions it retroactively granted to refiners reduced the 2016 and 2017 RVOs by a combined 2.25 billion RINs. NBB estimates the 2016 and 2017 exemptions reduced demand for biodiesel by more than 300 million gallons. And since every 100 million gallons of increased biodiesel production supports some 3,200 jobs, NBB estimates the small refinery hardship exemptions puts 9,600 jobs in jeopardy.

Tom Brooks, General Manager of Western Dubuque Biodiesel and chair of the Iowa Biodiesel Board, noted that the 300 million gallon loss of biodiesel demand happens to equal Iowa’s 2017 total production almost exactly. “The impact of these exemptions is like wiping out a year’s worth of production in the nation’s top biodiesel-producing state,” he said.




EPA’s 2019 RFS Proposal Missing an Opportunity to Set Things Right with America’s Farmers, Ethanol Producers

The Renewable Fuels Association (RFA) implored the Environmental Protection Agency (EPA) today to use the 2019 Renewable Volume Obligation (RVO) rulemaking process to fix the extensive damage done to the Renewable Fuel Standard (RFS) by former Administrator Scott Pruitt. In testimony delivered at a public hearing today in Ypsilanti, Mich., RFA Vice President of Government Affairs Samantha Slater said EPA’s 2019 RVO rule is an opportunity to correct the extensive damage done to demand for ethanol and America’s farmers by Scott Pruitt’s EPA.

The EPA field hearing is part of the public comment process surrounding recently released 2019 RVOs, which called for 19.88 billion gallons (BG). Of that 19.88 BG, 4.88 BG is advanced biofuel, including 381 million gallons of cellulosic biofuel. That leaves, on paper, a 15 BG requirement for conventional renewable fuels like corn ethanol.

“On the surface, the proposed rule raises the total 2019 RVO by 3 percent over the 2018 requirement, and maintains a 15-billion-gallon requirement for conventional biofuels like corn ethanol. But due to EPA’s failure to stem the tide of small refinery waivers, its refusal to reallocate lost blending volumes, and its brazen repudiation of binding court decisions, the proposed rule is superficial and toothless, and undermines President Trump’s commitment on the RFS,” Slater testified.

EPA recently approved 2.25 billion ethanol-equivalent gallons illegal waivers to oil refiners, and the agency has provided no commitment that it will change its approach to granting these exemptions, Slater explained. “Thus, the proposal means nothing until EPA reallocates those lost gallons and sets forth a more transparent and rational process that assures small refinery waivers are not abused or granted unnecessarily,” she testified.

As RFA outlined last week, interagency review documents show EPA had initially proposed to reallocate exempted renewable fuel volumes. However, after a lobbying push by the oil and gas industry, the EPA, then under the leadership of Scott Pruitt, reversed course just days before the 2019 RFS proposal was publicly issued.

“Administrative cuts to the RFS have resulted in significantly lower RIN prices, reduced corn and ethanol demand, avoided legal obligations for highly profitable businesses, and provided windfall profits for certain oil refiners,” Slater said. “The final rule should do less to cater to the whims of the oil industry in implementing the nation’s renewable fuel program, and more to create demand for ethanol, lowering prices at the pump for consumers and creating economic opportunities for farmers across the country,” she added.

In her testimony, Slater urged to EPA to:
• Adjust the 2019 RVO percentages to effectively reallocate projected small refiner exemptions;
• Address the court-ordered remand and include a plan for restoring the 500 million gallons missing from the 2016 RVO;
• Establish RVP parity for E15 and higher blends immediately; and,
• Lay out a plan for reallocating the renewable fuel blending volumes lost to small refiner exemptions in the 2016, 2017, and 2018 compliance years.



Most Fertilizer Prices Continue to Inch Higher Second Week of July

Average retail prices for most fertilizers continued to inch higher the second week of July 2018, continuing a trend that has been in place for the last several weeks, according to retailers surveyed by DTN.

Six of the eight major fertilizers were slightly higher compared to last month. DAP had an average price of $485 per ton, urea $366/ton, 10-34-0 $443/ton, anhydrous $505/ton, UAN28 $242/ton and UAN32 $279/ton.

Two fertilizers were slightly lower from the previous month. MAP had an average price of $504/ton and potash $354/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.31/lb.N, UAN28 $0.43/lb.N and UAN32 $0.44/lb.N.

All eight of the major fertilizers are now higher compared to last year with prices shifting higher in recent months. Both 10-34-0 and UAN28 are 3% higher, both potash and UAN32 are 4% more expensive, MAP is 8% higher, DAP is 11% more expensive, anhydrous is 12% higher and urea is 14% more expensive compared to last year.



RFA Announces Leadership Succession Plan

The Renewable Fuels Association (RFA) made an announcement today that marks the beginning of a new era for the ethanol industry’s leading trade association.  Executive Vice President Geoff Cooper will assume the position of president and CEO in October 2018, while current President and CEO Bob Dinneen will transition into the role of RFA’s Senior Strategic Advisor.

Dinneen has been with RFA for more than 30 years, including serving as the organization’s president and CEO since 2001. During his tenure, Dinneen led the industry and achieved a number of landmark legislative and regulatory victories for ethanol, including passage of the original Renewable Fuel Standard (RFS) in 2005 and significant expansion and extension of the RFS program in 2007.  Dinneen also played a crucial role in the creation of the reformulated gasoline and oxygenated fuels requirements; securing the RVP waiver for E10; working with states to adopt bans on MTBE; and multiple extensions of the ethanol blender’s tax credit and secondary tariff on imported ethanol, among other important victories.

“For more than three decades, I have had the privilege of working for an industry whose mission inspires me, a Board of Directors that supports me, and an organization that exemplifies the highest degree of professionalism, creativity, and competence,” Dinneen stated.  “I have borne witness to phenomenal growth, seen rural economies transformed and gotten to know and work side-by-side with the people who made this industry the success it is today.  Every day I am thankful for our accomplishments and still enthusiastic to tackle the challenges ahead.  Without a doubt, I have been truly blessed.”

“But 30 years is a long time and I believe now is the right time for new leadership, new ideas, and new energy at the helm of the Renewable Fuels Association.  I am going to keep working at RFA in a different capacity but with the same goal; to assure RFA and the industry I care about so deeply continue to grow and realize their full potential,” Dinneen continued.  “At the very least, I have great confidence that under Geoff’s leadership, the RFA will develop into an even more effective and authoritative voice for the U.S. ethanol industry, and that may be my greatest blessing.”

RFA Chairman Mick Henderson said, “Bob has spent most of his professional life dedicated to this industry, and for that we will always be grateful.  He has worked tirelessly on our behalf for 30 years and in that time, there was never any doubt that we could count on Bob to fight for us every day.  The industry simply would not be what it is today without Bob’s direction and leadership over the past three decades.”

Cooper joined RFA in 2008 as the organization’s Director of Research and Analysis and had ascended to executive vice president by 2016. He previously worked on ethanol issues for the National Corn Growers Association and served as a Captain in the U.S. Army, specializing in bulk petroleum product logistics. In recent years, Cooper has led RFA’s regulatory activities, while also overseeing the association’s research and technical initiatives, supporting public and media relations efforts, and managing the Renewable Fuels Foundation.

“I am deeply honored that the RFA board of directors has entrusted me with leading this vibrant and dynamic organization into the future,” Cooper said. “For the past decade, I have been incredibly fortunate to serve an industry and an organization whose values align so well with my own. It has been an absolute pleasure and a privilege to work alongside Bob, the RFA staff, and our diverse membership to advance RFA’s strategic goals and vision. Ethanol is a remarkable product that has an incredibly bright future filled with opportunity, and I am excited to help write the next chapter in our industry’s amazing story. I am truly grateful for the chance to build upon RFA’s legacy as the authoritative voice of the ethanol industry.”

In commenting on Cooper’s promotion, Henderson said, “The board and I have truly enjoyed working with Geoff, and we are confident he is the right new leader at the right time. We know he will bring new ideas and new energy to the RFA, build on Bob’s outstanding record of success, and position RFA favorably for the next 30 years of growth.”



House Moves to Send Farm Bill to Conference Committee, Appoints Conferees

Today, the House of Representatives moved to send the 2018 Farm Bill to conference committee. Following the vote, Speaker Paul Ryan (WI-01) named the House conferees, or members who will seek to resolve the differences between the two chambers’ bills. House Agriculture Committee Chairman K. Michael Conaway (TX-11) issued the following statement on the House’s action:

“Today, we move one step closer to delivering a strong, new farm bill to the president’s desk on time as he has called on Congress to do. America's farmers and ranchers and rural America are struggling right now and they deserve the certainty of a strong farm bill to see them through to better times. The House has pulled together a solid team of conferees from across the country who are committed to working with our Senate colleagues to reach a final product that helps millions of low-income Americans climb the economic ladder while standing by the hard-working farm and ranch families who put food on our tables and clothes on our backs.”

HOUSE REPUBLICAN CONFEREES

House Agriculture Committee Conferees:
1. Chairman Mike Conaway (TX-11)
2. Glenn ‘GT’ Thompson (PA-05)
3. Bob Goodlatte (VA-06)
4. Frank Lucas (OK-03)
5. Mike Rogers (AL-03)
6. Austin Scott (GA-08)
7. Rick Crawford (AR-01)
8. Vicky Hartzler (MO-04)
9. Rodney Davis (IL-13)
10. Ted Yoho (FL-03)
11. David Rouzer (NC-07)
12. Roger Marshall (KS-01)
13. Jodey Arrington (TX-19)

House Education and the Workforce Committee Conferees:
1. Chairwoman Virginia Foxx (NC)
2. Rick Allen (GA-12)

House Energy and Commerce Committee Conferees:
1. John Shimkus (IL-15)
2. Kevin Cramer (ND-AL)

House Financial Services Committee Conferees:
1. Chairman Jeb Hensarling (TX-05)
2. Sean Duffy (WI-07)

House Foreign Affairs Committee Conferees:
1. Chairman Ed Royce (CA-39)
2. Steve Chabot (OH-01)

House Oversight and Government Reform Committee Conferees:
1. Mark Walker (NC-06)
2. James Comer (KY-01)

House Natural Resources Committee Conferees:
1. Chairman Rob Bishop (UT-01)
2. Bruce Westerman (AR-04)

House Science, Space, and Technology Committee Conferees:
1. Ralph Abraham (LA-05)
2. Neal Dunn (FL-02)

House Transportation and Infrastructure Conferees:
1. Jeff Denham (CA-10)
2. Bob Gibbs (OH-07)



Pelosi Names Democrats to Farm Bill Conference Committee

In conjunction with this afternoon’s motion to proceed to conference on H.R. 2, the Agriculture and Nutrition Act of 2018, House Democratic Leader Nancy Pelosi named the following 10 Democrats from the Agriculture Committee and representatives from other pertinent committees who will join their Republican colleagues and comprise the House conferees for the farm bill:

Agriculture
Collin Peterson (D-Minn.)
David Scott (D-Ga.)
Jim Costa (D-Calif.)
Tim Walz (D-Minn.)
Marcia Fudge (D-Ohio)
Jim McGovern (D-Mass.)
Filemon Vela (D-Texas)
Michelle Lujan Grisham (D-N.M.)
Ann Kuster (D-N.H.)
Tom O’Halleran (D-Ariz.)

Education and Workforce
Alma Adams (D-N.C.)

Energy and Commerce
Paul Tonko (D-N.Y.)

Financial Services
Maxine Waters (D-Calif.)

Foreign Affairs
Eliot Engel (D-N.Y.)

Natural Resources
Raul Grijalva (D-Ariz.)

Oversight and Government Reform
Stacey Plaskett (D-V.I.)

Science, Space and Technology
Eddie Bernice Johnson (D-Texas)

Transportation and Infrastructure
Cheri Bustos (D-Ill.)



NCBA Applauds U.S. House Motion to Begin Farm Bill Conference Committee

National Cattlemen’s Beef Association President Kevin Kester today issued the following statement regarding the U.S. House of Representatives' approval of a motion to proceed to a conference committee for the 2018 Farm Bill:

"This is yet another step in the right direction toward a Farm Bill that delivers on the important priorities of America's farmers and ranchers. We're especially pleased to see significant bipartisan support for the motion to instruct conferees. This motion instructs the conferees to support permanent mandatory funding for the Foot and Mouth Disease (FMD) Vaccine Bank and the other important programs included in the Animal Disease Preparedness Response requests in the bill.

"We look forward to continuing our work with House Agriculture Committee Chairman Mike Conaway (R-Texas), Ranking Member Collin Peterson (D-Minn.), and the rest of the conferees as the 2018 Farm Bill is finalized."



House Votes to Send Farm Bill to Conference

The U.S. House of Representatives voted today to send the farm bill to conference, the process by which the House and U.S. Senate remedy differences between their respective versions of the farm bill. A conference committee of members from the House and Senate could begin meeting as early as next week.

National Farmers Union (NFU), the nation’s second largest general farm organization, called for a smooth conference committee process and swift passage of a farm bill that improves the farm safety net, farm sustainability, and diverse markets for family farmers.

NFU Senior Vice President for Public Policy and Communications Rob Larew issued the following statement in advance of the conference committee process:

“The September 30 expiration date for the current farm bill looms large, as family farmers and ranchers require the certainty of a strong farm bill now as much as any other time over the past several decades. Farmers have been coping with depressed commodity prices for several years, forcing many into significant financial strain. On top of that, trade volatility and political uncertainty are casting an ominous shadow over the foreseeable future of the farm economy.

“We’re hopeful that the conferees will respond to this immediacy by producing a bill, on time, that meets the needs of farmers, consumers, and our nation’s food system. We urge the committee to ensure the final bill improves the farm safety net to deal with the current economic hardship facing farmers, promotes the environmental sustainability of family farm operations, and improves access to diverse markets for family farmers and ranchers.”



Trade War Endangers Farmers, Farm Bureau Tells Congress

American Farm Bureau Federation Vice President Scott VanderWal and Texas Farm Bureau President Russell Boening today warned Congress that many farms will lose money and even go out of business entirely if the growing trade war continues. Each called for a resumption of talks and removal of tariffs that are undoing decades of progress in trade.

Kevin Paap, president of the Minnesota Farm Bureau, testified separately for his state’s organization. “Agriculture has been and continues to be the tip of the spear,” the corn and soybean farmer told the committee. “Once you lose a market, it is really tough to get it back. We cannot afford to lose our place as a leader in the agricultural global marketplace.”

VanderWal, who also serves as president of the South Dakota Farm Bureau, raises corn and soybeans and owns a cattle feeding operation.

“Our farmers are facing a perfect storm,” VanderWal told the House Ways and Means Subcommittee on Trade. “Since 2014, the American farmer’s income has fallen 52 percent. Now, farmers are dealing with big shifts in the commodity markets because of trade and tariff threats. Throughout history, some farmers have survived by expanding their operations. Today, that option is nearly impossible for many because of the lack of qualified labor. We also have the potential of going into harvest without a new farm bill. The ingredients of this perfect storm—trade threats, lower income, the lack of labor and no farm bill—will be more than our farmers can handle.”

The South Dakota farmer called for more clarity. “We must ask, what is the exact goal? What is the exit strategy? If we knew this would all be over within a few months, we could hang in there and manage around it. Obviously, none of us know the time frame and that uncertainty is very detrimental.

“We must get back to the table and get these issues worked out. If we cannot do that, the consequences are dire,” VanderWal said.

During his testimony, Boening, a farmer who serves as chairman of the AFBF Trade Advisory Committee, acknowledged that foreign barriers to trade are sometimes steep. The Boening family raises watermelons, feed grains, wheat, cotton and beef cattle and operates a dairy.

“In 2015, China’s ‘minimum support price’ for corn, rice and wheat was estimated to be nearly $100 billion in excess of the levels China committed to when they joined the World Trade Organization,” Boening said.

“Let me make this clear: for just three crops - in just one year - China illegally exceeded its World Trade Organization limits by 100 billion dollars. Some may think that’s no big deal, but let me put this in context. We just finished a hard-fought farm bill debate, where some questioned the need for support provided to our farmers, but China’s illegal subsidies - for just three crops - in one year - exceeded what we will spend on the entire farm safety net for every crop on every acre in this nation over the entire life of the farm.”

Nonetheless, Boening expressed the frustration many farmers and ranchers feel over the current tit-for-tat tariffs between the U.S. and long-standing trading partners.

“We will begin cotton harvest on our farm in about six weeks, against the backdrop of significant volatility in the market,” Boening said. “Forty-six percent of cotton exported to China comes from Texas. Any potential loss of this important market would be very difficult for our cotton farmers.

“Also, on our dairy, we have already seen prices of milk and other products fall by more than 10 percent over the last month alone. These are just a few personal examples and there are many other farmers and ranchers who are facing the same challenges with all the uncertainty over trade policy.”



CWT Assists with 8.8 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted offers of export assistance from CWT that helped them capture contracts to sell 3.949 million pounds (1,791 metric tons) of Cheddar and Monterey Jack cheese, 578,714 pounds (263 metric tons) of butter and 4.233 million pounds (1,920 metric tons) of whole milk powder going to customers in Asia, the Middle East, North Africa and Oceania. The product has been contracted for delivery in the period from July through December 2018.

CWT-assisted member cooperative 2018 export sales total 44.048 million pounds of American-type cheeses, 11.809 million pounds of butter (82% milkfat) and 20.106 million pounds of whole milk powder to 28 countries on five continents. These sales are the equivalent of 819.045 million pounds of milk on a milkfat basis.

This activity reflects CWT management beginning the process of implementing the strategic plan reviewed by the CWT Committee in March. The changes will enhance the effectiveness of the program and facilitate member export opportunities.



 National Association of Egg Farmers Urges Support for King Amendment in Farm Bill in Congress

The Farm Bill is before Congress every five years and is important to the nation's farmers.  This year it is very important to National Association of Egg Farmers members, as the House version includes an amendment from Rep. Steve King from Iowa that seeks to uphold the U.S. Constitution commerce clause.

In effect that clause says Congress is to regulate commerce among the states, but certain states are implementing laws regulating how eggs are produced outside the state and then imported into that state. Specifically, they are pressing for removing cages for egg-laying hens.  They claim they are doing it for the welfare of the chicken and the quality of the egg.  They need to ask the farmers.  Farmers today moved to cages for welfare considerations and for egg quality improvements.

Let's begin with the welfare of the chicken. The term "pecking order" is the term applied to chickens establishing dominance.  Research has shown higher mortality among cage-free chickens.  So more chickens together means more pecking.  In cages, that is reduced to a much smaller number.  Cage-free systems have resulted in more broken breast bones. Forcing chickens into production systems that increase bone breakage is inhumane.

There are more external parasites in cage-free farms, specifically red mites. 83% of European cage-free egg farms are already infested with poultry red mites. All 27 member nations in the EU are about 40% cage-free compared to 16% in the U.S. Subjecting poultry to parasites is inhumane.

Currently, California is struggling with a major poultry disease (Virulent Newcastle Disease) with more than 40 outbreaks in backyard poultry that are cage-free.  Once discovered, these chickens have to be destroyed.  Forcing chickens into production systems where they contract poultry diseases is inhumane.

From the perspective of FOOD SAFETY-The US Animal Health Association October 17, 2017 Report stated: "Ascarids (round worms) are increasingly being found in cage-free operations with the concern being the possibility of a consumer finding an egg with a roundworm contained inside. Most all cage-free egg producers have had such an occurrence."

Chickens pick up roundworms when they come into contact with infected feces on the ground. How will consumers react to finding round worms in their eggs?

Farmers know how to produce safe, quality eggs while caring for their chickens.  Don't take that knowledge away by removing consumers' choices and forcing only cage-free eggs.

It is for these reasons National Egg Farmers is urging support for the King amendment in the Farm Bill.