Sign-up begins Sept. 4th for new LENRD irrigated acres
Farmers within the Lower Elkhorn Natural Resources District (LENRD) boundaries, will have an opportunity to apply for new irrigated acres for 2019.
The LENRD board voted, at their August meeting, to allow up to 2,500 acres of new groundwater irrigation development in the Hydrologically Connected or 10/50 Area, and to allow up to 2,500 acres of new groundwater irrigation development in the Non-Hydrologically Connected or Non 10/50 Area under the district’s standard variance process for 2019.
LENRD Assistant General Manager, Brian Bruckner, said, “The board voted to allow for the approval of standard variances district-wide, from areas that fall within the top five Potential for Development categories as provided on the Classification 4 Map provided by Flatwater Group.”
Bruckner added, “The board suggested an annual limit on the amount of groundwater withdrawal from wells associated with approved variances, determined by board policy, which is subject to future modification if conditions warrant. In addition, a minimum soil score of 90 must be met for any standard variance to be considered for approval.”
The board established a sign-up period to receive applications for Standard Variances. The district will receive applications for standard variances between September 4th, 2018 and October 3rd, 2018. Contact the LENRD for more information or visit: www.lenrd.org/latest-news/.
Red Corn
Megan Taylor - NE Extension Educator, Platte County
I have red leaves and stalks on isolated corn plants. What is going on?
The red to purplish tint in corn late in the season results from an overabundance of photosynthetic sugars in the stalk and leaves. Sugar was produced by photosynthesis, but the plant had few or no kernels in which to move the sugar. Essentially, there was a sink-source imbalance in the plant.
What caused the red pigment in the leaves?
The red pigment could be caused by a variety of stresses, but it all goes back to the developing kernels and ear. Temperature, water, or disease stress during or just before pollination could affect kernel set and the developing ear. During pollination, throughout northeast Nebraska, high temperatures and high humidity occurred during the critical stages of tasseling and silking. These stresses can affect kernel set negatively. (See Tom Hoegemeyer’s CropWatch article on how high temperatures and humidity can affect pollination.) With few or no developing kernels, the corn plant had no sink to move the sugar to. Sink organs are photosynthetically inactive and source organs are photosynthetically active. In the case of corn, source organs (leaves) assimilate sugars and move them to the sink organs (kernels) to be stored.
Should I be concerned?
Unfortunately, there is no way to treat red corn and typically the pigmentation will persist throughout the season. This red coloring serves as a red flag when it comes to the production of that particular plant, indicating that yield will be low or none at all. This is typically an isolated issue on end rows or in small pockets within a field so may not affected yield greatly.
Terminating a Verbal Farm Land Lease
Allan Vyhnalek - NE Extension Educator, Farm/Ranch Succession and Transition
Some farm leases are not written, but are verbal or "handshake" agreements. Because nothing is in writing, the parties may have different recollections of their agreement, making lease disputes more difficult to resolve.
The most common legal issue associated with verbal farm leases is how a lease may legally be terminated. For both year-to-year leases and holdover leases, six months advance notice must be given to legally terminate the lease. However, the lease date (the date from which the six months is counted) is different. In contrast, the termination of a written lease is determined by the terms of the written lease.
To break a verbal or handshake year-to-year lease, notification must be made at least six months in advance of the end of the lease or at the latest, by September 1, regardless of the crop being planted. It's recommended that notice of lease termination be made by Registered Mail™ to assure a record of receipt.
Terminating Verbal Leases
For year-to-year verbal leases, the Nebraska Supreme Court has ruled that the lease year begins March 1. Notice to a tenant to vacate under a verbal or handshake year-to-year lease (legally referred to as a "notice to quit") must be given six months in advance of the end of the lease, or at the latest, by September 1. This rule applies regardless of the crop planted. Those with winter wheat should consider providing notice before it is time to prepare wheat ground for planting.
For example, for the lease year beginning March 1, 2018, and ending February 28, 2019, notice from the landlord that the lease will be terminated would have to be given to (and received by) the tenant no later than September 1, 2018. The lease would then expire February 28, 2018, with the new tenant (or new buyer) able to take over the lease March 1, 2019. If, however, the notice to quit were given (or received) after September 1, 2018, the existing tenant would have the lease until February 28, 2020.
It is recommended that the farmland lease be terminated by Registered Mail™. This means that the person receiving the letter signs for it, providing evidence that the termination notice was received.
Pasture Lease Terminations
Handshake or verbal leases are different for pastures. The typical pasture lease is for the five-month grazing season. The lease is only in effect for that time, so the lease is terminated at the end of the grazing season; however, different lease length arrangements can be made in a written lease, and that would be followed if in effect.
Regardless of the type of lease — written, verbal, or even multiple year — the landlord should have clear communication with the tenant. By sending a termination notice before September 1, even for written leases, you can avoid any miscommunication or pitfalls.
Written Leases
In all instances, written leases would be preferred over oral or “handshake” leases. Sample leases are available in the Document Library at aglease101.org and can help both parties start thinking about the appropriate lease conditions for their situation. The site was developed by university extension specialists in the North Central Region.
Preparing for Harvest, Grain Storage
John Wilson - NE Extension Educator, Burt County
With harvest just around the corner now is a good time to prepare for harvest and grain storage.
Growing a crop takes good management coupled with a little cooperation from Mother Nature. While we can't control the weather, we have almost complete control on whether we keep that crop in good condition from harvest until it is fed or sold. Producing a good crop, only to have its condition deteriorate in storage, is an unnecessary loss of income.
Last year, harvest progressed normally, but a few years ago, it was a disaster due to poor harvest and drying conditions. A lot of grain was harvested wet, conditions were not favorable for drying it in the bin, and some of the crop went out of condition in storage. With crops maturing earlier this year, hopefully there will be plenty of opportunity for crops to dry in the field, reducing the need for and expense of drying stored grain.
Proper cleanup before harvest coupled with good stored grain management will put more income in your pocket and keep your equipment and facilities in better condition. Consider this five-step, pre-harvest plan to keep your stored grain in good condition.
Pest Proof Bins. Repair all leaks and holes in bins so rain or snow can't get in and increase grain moisture and pockets of grain spoilage. Screen roof vents to exclude birds and other pests. Keep doors shut to keep birds, rodents and insects out.
Clean Outside Bins. Do not allow junk to accumulate or weeds and grass to grow tall next to your bins. These hiding places for rodents make detecting their presence more difficult. Clean up spilled grain from loading and unloading areas so it won't attract insects, birds, or rodents.
Clean Inside Bins. Grain or grain debris may harbor insects and molds that can infest newly stored grains. For this reason, never put new grain on top of old grain. Thoroughly clean the bin with brooms, shovels, and vacuum cleaners to remove old grain, cracked kernels, and grain debris. Clean walls, ceilings, ledges, sills, and floors. Clean behind partitions and between walls, and clean out cracks and crevices. Remove and burn all sweepings and debris.
Spray Bins. After the bin is thoroughly cleaned, spray the inside surfaces with a recommended grain protectant, ideally at least two weeks before storing grain. Check the insecticide label for rates and to ensure the product is appropriate for the type of grain you will store. Spray around all openings and into the seams. Spray removable doors, behind partitions and under perforated floors and aeration ducts. Before grain is put in the bin, sweep up and dispose of all dead insects.
Clean Harvest and Handling Equipment. Thoroughly clean trucks, combines, grain carts, augers, dryers and other equipment that might have old grain left in it from the last use. Such grain may contain insects and molds that could start new infestations in newly harvested grain.
Following these five steps won’t insure safe grain storage, but it does greatly reduce the chance for problems to develop in your bins. You’ll still need to get grain dried and cooled enough for safe storage this fall, periodically check on it over the winter, then gradually warm the grain next spring.
FALL CONTROL OF WINTER ANNUAL BROMES
Bruce Anderson, NE Extension Forage Specialist
Did you have downy brome, cheatgrass, or wild oats in your pasture this spring? Although difficult, they can be controlled and your pasture revitalized.
Winter annual bromes often invade thin or overgrazed pastures in fall and early spring. Livestock dislike grazing them, so over time they can take over and make large patches of pasture nearly worthless.
By far the most effective control method in brome and other cool-season pastures is to spray six to eight ounces per acre of an imazapic herbicide like Plateau as soon as possible in early September. This pre-emerge treatment will prevent most annual bromes from developing.
As we move into October, however, it is likely that some, or maybe a lot of these grass seedlings will have already emerged. When this situation exists, add an adjuvant like a non-ionic surfactant or methylated seed oil to the spray mix for better control of emerged seedlings.
In warm-season grass pastures and rangeland, there is another option. You can use glyphosate herbicides after top growth of these grasses has died due to a hard freeze or two. This can kill emerged annual brome seedlings without harming the desirable grasses. However, do not use glyphosate in cool-season pastures because it will injure or kill the pasture grasses as well.
These treatments may need to be repeated for a couple years to prevent reoccurrence of these weedy grasses. But with proper grazing management and other practices, your pastures can develop thicker stands of the more desirable grasses.
It takes a long, dedicated process to recover pastures overtaken by winter annual bromes. There are no shortcuts.
ADD LIME THIS FALL FOR NEXT SPRING'S ALFALFA
Do you ever have problems establishing alfalfa? The solution might be to apply lime if your soil pH is low.
Every year, alfalfa growers ask me about slow growing seedlings. Eventually, I’ll ask about their soil pH. Way too often, either they didn’t get a soil test and don’t know or the test showed that the pH was so low that it is unlikely that alfalfa could grow well. But when I suggest adding lime next time before planting they either add too little to do any good or they disregard the recommendation entirely.
Alfalfa grows best in soils with a neutral pH of about 7. When soils are acid, with a pH of 6.2 or lower, alfalfa plants do not grow as well. At a low pH, alfalfa roots are less able to absorb nutrients from soil. Also – the nodules on alfalfa roots that convert nitrogen from the air into nitrogen the plants can use – these nodules have difficulty forming and working effectively in acid soils.
Most sandy, low organic matter soils as well as heavier ground that has been tilled and fertilized with nitrogen for many years have become acidic. These soils need lime to solve this problem. But some folks still resist liming even when their own soil pH is down as low as 5.5 or even below 5!
It takes awhile for lime to really neutralize much acidity. So I recommend applying lime at least 4 months ahead of planting alfalfa. That means that if you expect to seed a new field of alfalfa next spring, add lime if needed this fall to give it time to work. Sure it costs money, but it's much less costly then having a stand failure or several years of low alfalfa yields.
Maybe some folks just like to gamble, but me, I prefer to bet on a sure thing and invest in lime rather than a long shot.
Nebraska LEAD Announces 2018-2020 Fellows
Nebraska LEAD (Leadership Education/Action Development) Group 38 participants have been announced by the program’s director, Terry Hejny. The two-year program will begin in September.
Director, Nebraska LEAD (Leadership Education/Action Development) Program.
The newest members of Nebraska's premier two-year agricultural leadership development program are involved in production agriculture and/or agribusiness in Nebraska.
"It certainly appears that Class 38 is filled with outstanding individuals from throughout our state and I am excited to get started with them. Our task will be to prepare and motivate them for future leadership roles in their community, our state and beyond," Hejny said.
Nebraska LEAD 38 Fellows by city/town are:
BERTRAND: Rebecca Schwarz
BROKEN BOW: Jack Lindstrom, Troy Mack
BRUNING: Heather Ramsey
CAIRO: Michael Dibbern
CENTRAL CITY: Logan Williams
CHADRON: Kyle McCarthy
CHAPMAN: Shane Greving
DAVENPORT: Katie Kaliff-Jagels
DECATUR: Jennifer Penny
ELKHORN: Evan Weborg
ELM CREEK: Sarah Sivits
GRAND ISLAND: Lori Cox
HASTINGS: Dennis Hoppe
HOLDREGE: Anthony Marquardt
INDIANOLA: Veronica Waddell
KIMBALL: Lindsay Forepaugh
LINCOLN: Noah Blomendahl, Cale Buhr, Doran Johnson, Boone McAfee
LYONS: Jordan Rasmussen
MAYWOOD: Aaron Weismann
OGALLALA: Tony Schrotberger
OMAHA: Ryan Sandoz, Scott Schmalken
PALMER: Rene Blauhorn
RAVENNA: Judy Trent
WAVERLY: Paula Peterson
LEAD Fellows will participate in 12 monthly three-day seminars across Nebraska, a 10-day national study/travel seminar and a 14-16 day international study/travel seminar. The goal of the program is to develop problem solvers, decision makers and spokespersons for agriculture and Nebraska.
Seminar themes include leadership assessment and potential, natural resources and energy, leadership through communication, agricultural policy, international trade and finance, Nebraska’s political process, global perspectives, nuclear energy, social and cultural issues, understanding and developing leadership skills, agribusiness and marketing, information technology, advances in health care, the resources and people of Nebraska’s Panhandle and other areas designed to develop leaders through exposure to a broad array of current topics and issues and how they interrelate.
The Nebraska LEAD Program is operated by the non-profit Nebraska Agricultural Leadership Council in cooperation with the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln and 12 other institutions of higher education throughout Nebraska.
Ricketts Receives Nebraska Farm Bureau “Friend of Agriculture” Designation
Governor Pete Ricketts has been designated a “Friend of Agriculture” by NEFB-PAC, Nebraska Farm Bureau’s political action committee. Ricketts, who is seeking re-election to serve a second term as governor, received the designation based on his efforts to support and grow Nebraska agriculture on numerous fronts, according to Nebraska Farm Bureau President Steve Nelson.
“Growing markets for our agricultural commodities is critical to Nebraska farmers and ranchers. Nearly a third of our state’s agriculture cash receipts come from agriculture exports. Governor Ricketts has proven time and again that he knows how important trade is to Nebraska and he has worked hard to build international relationships and expand market opportunities for the crops and livestock we produce right here in our state,” said Nelson. “Whether it’s leading trade missions or mapping out a strategic plan for growth through the Governor’s Council for International Relations, the governor has made trade a top priority in his administration to the benefit of the state’s farm and ranch families.”
In addition to trade, Nelson pointed to several other areas where Ricketts has acted to support Nebraska agriculture, including:
Ricketts’ ongoing support for biofuels, the Renewable Fuel Standard, and Nebraska’s ethanol industry; which is a key component of Nebraska’s highly successful corn, ethanol, and cattle feeding triangle that has created value-added opportunities for Nebraska agriculture.
Ricketts’ efforts to push back against overreaching federal regulations, including the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers “Waters of the U.S.” rule, a far-reaching regulation that would have infringed on the property rights and management of private land as well as taken away state’s rights for managing local natural resources.
Ricketts’ support and backing for initiatives to expand broadband access in rural Nebraska, including recent legislation to establish a Rural Broadband Task Force targeted to addressing the needs of farmers, ranchers, business owners, and rural Nebraskans who run the risk of falling behind without access to high quality and high-speed internet.
Ricketts’ efforts to work with both the agriculture community and state officials to work through rules and regulations related to the transport of livestock.
Ricketts’ leadership on water issues, including work with the state attorney general to reach a settlement in the long-standing Republican River Compact lawsuit, which jeopardized Nebraska farmers future access to water for irrigation.
Ricketts’ support for growth and development of Nebraska’s livestock industry through support for the state’s “Livestock Friendly County” program, which recognizes counties for their efforts to develop a climate conducive to livestock expansion opportunities.
Ricketts’ ongoing efforts to work collaboratively to find solutions to address Nebraska’s property tax burden, including his support for utilization of internet sales tax dollars to provide property tax relief.
Ricketts’ overall efforts to reduce and streamline state government as well as his openness to consider Farm Bureau recommendations for appointments to individuals on boards and commissions important to Nebraska agriculture.
“Whether its vetoing a bill that would weaken measures to control prairie dog populations that damage grazing land or leading a delegation to Japan to promote Nebraska beef, Governor Ricketts has worked to support Nebraska agriculture. We thank him for those efforts and are pleased to announce his designation as a ‘Friend of Agriculture’ as he seeks re-election,” said Nelson.
Governor Ricketts shared his appreciation to Nebraska Farm Bureau and its members for the designation.
"I'm honored by the continued support of Nebraska Farm Bureau and the many farm and ranch families it represents," said Governor Ricketts. "Farming and ranching are not just our state's heritage--they're an engine for growing Nebraska. That's why we'll keep fighting to lower property taxes, promote our world-class ag exports, and support our state's number-one industry."
The Nebraska Farm Bureau-PAC “Friend of Agriculture” designation is given to selected candidates for public office based on their commitment to and positions on agricultural issues, qualifications, previous experience, communication abilities, and ability to represent their constituents.
Rollover Protection Structures (ROPS) can prevent injury/death due to tractor rollovers
Is your life worth $391?
That’s the average out-of-pocket cost of a Rollover Protection Structure (ROPS) for enrollees in the National ROPS Rebate Program, which launched in June 2017. Agricultural experts throughout the United States strongly endorse ROPS as a way to reduce the impact of tractor rollovers, the number one cause of farm injury or death.
Since the program began, more than 2,000 tractors have been retrofitted, with more than $1.5 million in rebates going directly to farmers since the program began. Records show that at least 197 close calls and 16 serious injuries/fatalities have been prevented through these efforts.
Program funds have been provided through donations. Major donors include Compeer Financial, CHS, Land O’ Lakes, AgCountry Farm Credit Services, Auction of Champions, New Hampshire Department of Agriculture, Markets and Food, Minnesota Department of Agriculture, Massachusetts Department of Agricultural Resources, American National Company, New York State Assembly and Senate Agriculture Committees, and Vermont Agency of Agriculture, Foods and Markets.
The first ROPS rebate program was established in the State of New York in 2006, outfitting more than 2,300 tractors over 12 years and documenting “an impressive number” of operators whose lives were saved by a ROPS.
While use of newer model tractors, with ROPS incorporated into their design, has had a positive impact on rollovers, reducing overall numbers and risk of death or injury is still high when ROPS and seat belts aren’t in use.
“In Nebraska, tractor rollover incidents aren’t as prevalent as in areas where more small, older tractors are in use,” said Aaron Yoder, Ph.D., associate professor of environmental, agricultural and occupational health at the University of Nebraska Medical Center College of Public Health. “That’s because many farmers here use newer tractors. But if ROPS aren’t in place, a rollover can be fatal in a new tractor model, too.”
In 8 out of 10 tractor rollover incidents, either inexperienced or aging operators are involved. That’s because it’s both young drivers and older farmers who tend to use small, older model tractors for minor chores around the farm. Newer tractors are used for major farm activities.
“Those older tractors pose the most rollover risk,” Dr. Yoder said. “Other scenarios where rollovers often occur are in hayfields with rolling or hilly terrain. Mowing, baling and hauling hay on uneven terrain put tractor operators at greater risk for rollovers.”
Statistics have shown that 99.9 percent of tractor operators using ROPS and a seat belt survive a rollover with few injuries.
“We haven’t documented a case of anyone killed in a rollover when they were using both the ROPS and the seatbelt,” Dr. Yoder said.
It was 1985 when American tractor manufacturers voluntarily added ROPS to all farm tractors with more than 20 horsepower sold in the United States. Of some 4.8 million tractors used on U.S. farms, the National Institute for Occupational Safety and Health (NIOSH) estimates that about 50 percent of those tractors do not feature rollover protection.
“Although newer model tractors are designed with ROPS and seatbelts, some of those features are disabled or removed for a variety of reasons,” Dr. Yoder said. “If the rollbars get in the way and are folded down or if seatbelts malfunction, the protection often isn’t restored to working condition.”
ROPS that hinder visibility or make it difficult to operate the tractor in a tight space are common reasons the protection is folded down or removed.
ROPS are designed to create a protective zone around a tractor operator when a rollover occurs. As long as the roll bars and seat belt keep the operator within that zone of protection, there’s little risk of being crushed or injured from a tractor rollover.
All ROPS have been tested to meet crush, static and dynamic standards set by the Society of Automotive Engineers (SAE). Testing involves impacting the ROPS in a prescribed manner with a 4,410 pound pendulum weight from behind and on both sides. To pass the test, the ROPS must remain intact and provide the specified zone distance for the operator.
ROPS can be made of any material as long as they meet temperature requirements and withstand the standard tests. Typical ROPS installed on later model tractors are made of precision-welded steel that won’t facture in cold temperatures. ROPS designs include two-post, four-post and ROPS with an enclosed cab. Two-post ROPS are the most common design and are available in either rigid or foldable models.
A rigid ROPS features upright posts that are either vertical or slightly tilted and mounted to the tractor’s rear axle. The foldable ROPS was designed with hinges to allow the ROPS to be adjusted so the tractor will fit in low clearance areas.
A four-post ROPS is mounted onto both axles and onto the frame in front of the operator. The ROPS with an enclosed cab is typically installed by the manufacturer, and the structure acts as a ROPS.
Once installed, a ROPS should be periodically inspected and serviced to check for extreme rust, cracks or other signs of wear. If lighting or other attachments are attached to a ROPS, they should be clamped on. It’s never advisable to drill holes in a ROPS.
ROPS should never be used as a point of attachment for a chain, hook or cable because the ROPS could be damaged.
“If a tractor fitted with ROPS does overturn, the ROPS should be replaced,” Dr. Yoder said. “They’re designed to absorb energy generated by a tractor hitting the ground, but they will only withstand a single overturn.”
It can be difficult to find a ROPS that fits an older tractor. “The Kentucky ROPS Guide,” compiled by University of Kentucky’s College of Agriculture, lists ROPS for tractors manufactured since 1967. It’s available online at http://warehouse.ca.uky.edu/rops/ropshome.asp.
Local equipment dealers should also have ROPS information for retrofitting their own tractor brands.
Because producing a ROPS for some older model tractors may be cost prohibitive, there are now ROPS rebate programs available in every state through the National ROPS Rebate Program.
To enroll in the program, tractor owners can call 877-767-7748 or go to www.ROPSr4u.com. The program team will provide enrollees with sourcing information and cost estimates for ROPS kits. Full enrollment details are available on the website.
“Through this program, tractor owners will find assistance in helping identify the proper ROPS for their tractor model,” Dr. Yoder said. “On a moderate-sized tractor, a ROPS costs approximately $1,000. For larger tractors the cost may be as high as $2,000. Some states have an additional rebate fund. Depending on the state, rebates can be as high as 70 percent of the ROPS cost.”
Dr. Yoder noted that some equipment dealers may be willing to discount the cost of a ROPS and installation because they’re well aware of the level of safety the ROPS provide.
“On newer tractors, we strongly urge operators to keep their rollbars up,” Dr. Yoder said. “They may sometimes be in the way when you’re getting in and out of the tractor or doing something like mowing. Fold them down if you have to, but don’t leave them that way. Put them back in place. Don’t risk injury or death for the sake of convenience.
“That same principle applies to all the safety features on newer tractors,” he said. ”It’s there for a reason. Don’t bypass it or leave it in disrepair. Make sure all your safety features are working and in place to protect whoever is in the driver’s seat.”
ROLLOVER FACTS (www.ropsr4u.com)
· Each year, approximately 26.7 out of every 100,000 American farmers die on the job.
· The tractor is the leading cause of death on a farm; the most frequent cause of tractor-related deaths are side and rear overturns (96 deaths per year).
· 80 percent of deaths caused by rollovers happen to experienced farmers.
· 1 in 7 farmers involved in tractor overturns are permanently disabled.
· 7 out of 10 farms will go out of business within 5 years of a tractor overturn fatality.
· ROPS are 99 percent effective in preventing injury or death in the event of an overturn when used with a seatbelt and 70 percent effective when used without a seatbelt.
· Roughly half of U.S. tractors do not have rollover protection.
· Through the National ROPS Rebate Program, the average out-of-pocket expense for a ROPS kit is $391.
New Insect Pest to Be Discussed at ISU Extension and Outreach Forum
A forum will be held Sept. 5 to discuss a new insect threat that is being found in Iowa. The forum will be held at 1:30 p.m. at the Iowa State University Armstrong Memorial Research and Demonstration Farm near Lewis.
The soybean gall midge has been identified in 12 Iowa counties: Lyon, O’Brien, Clay, Plymouth, Cherokee, Buena Vista, Woodbury, Harrison, Shelby, Pottawattamie, Cass and Page. It also has been observed in several counties in eastern Nebraska. The insect has been observed in Iowa since 2015 and there have been reports of soybean injury as a result of soybean gall midge in both 2016 and 2017.
Iowa State University Extension and Outreach agronomists and entomologists will be present during the event to discuss current information on soybean gall midge and provide observations from this and previous growing seasons.
Erin Hodgson, associate professor and extension specialist in entomology at Iowa State University, will share current information on the soybean gall midge. Aaron Saeugling, field agronomist with ISU Extension and Outreach, and Ryan Rusk, farmer and seed dealer from northwest Iowa, also will provide insight into their experience with these pests.
The Armstrong Research and Demonstration Farm is located at 53020 Hitchcock Ave., Lewis, Iowa.
Fischer Praises Trade Agreement with Mexico
U.S. Senator Deb Fischer, a member of the Senate Agriculture Committee, released the following statement today after the White House announced a trade agreement with Mexico:
“Today’s announcement of a two-year trade agreement with Mexico is a step in the right direction. I’m pleased to see President Trump making good on his promise to provide better certainty for Nebraska farmers and ranchers. I am hopeful this announcement will send a positive signal to our other NAFTA partner, Canada, that the United States is committed to modernizing trade agreements.”
Fischer has attended three meetings with President Trump at the White House to stress the importance of trade in Nebraska.
Key Nebraska Ag Stats:
NAFTA countries account for 45 percent of all Nebraska’s agricultural exports, and Mexico is our second largest customer. In 2017, Mexico was Nebraska’s largest export market for corn, wheat, dairy products, sugar and sweeteners, and animal fats. Additionally, Mexico is our second largest export market for soybeans and soybean products, dry edible beans, sorghum, and distillers grains.
Sasse Statement on Possible U.S.-Mexico Agreement
U.S. Senator Ben Sasse released the following statement regarding the possible U.S.-Mexico agreement.
“I am working through the details of the possible U.S.-Mexico agreement, but there is reason to worry that this might be a step backward from NAFTA for American families – especially on fundamental issues of presumed expiration of the deal, and empowering government bureaucrats rather than markets to determine the components in cars and other goods.”
Statement by Steve Nelson, President, NE Farm Bureau, Regarding U.S. and Mexico Trade Agreement
“Today’s announcement that the U.S. and Mexico have reached an agreement on provisions of a trade deal is good news for Nebraska farmers and ranchers who have been anxiously awaiting positive news on the trade front. While this is clearly progress, it’s critical that Canada come back to the negotiating table. It’s time for our countries to resolve these issues and lock in an updated trade agreement to eliminate uncertainties in these markets and expand market access for our farm and ranch families.”
Ricketts Comments on Mexico Trade Deal
Today, Governor Pete Ricketts issued a statement following news that President Donald J. Trump had struck a new, preliminary trade deal with Mexico.
“Mexico is one of Nebraska’s best customers, and a new deal will give more certainty to our farm families headed into harvest. During our mission to Mexico last week, we talked to leaders in the country about buying more of Nebraska’s quality grains, and we are excited about the prospect of expanded reciprocal trade with this new agreement. It is my hope that Canada will come to the table quickly, and I urge President Trump to continue to work to expand markets for Nebraska’s quality ag products and manufactured goods.”
Secretary Perdue on U.S.-Mexico Trade Agreement
U.S. Secretary of Agriculture Sonny Perdue today issued the following statement regarding the announcement on trade between the United States and Mexico:
“President Trump is delivering on his promise to renegotiate the old, outdated North American Free Trade Agreement (NAFTA), making good on his pledge to strike the best deals possible for all of our economic sectors, including agriculture. The President has achieved important improvements in the agreement to enable our agricultural producers to be treated more fairly. This breakthrough demonstrates that the President’s common-sense strategy of holding trading partners accountable will produce results. President Trump and Ambassador Lighthizer, our U.S. Trade Representative, are to be congratulated for their determination, vision, and leadership.
“The agreement specifically addresses agricultural biotechnology to keep up with 21st Century innovations. And we mutually pledge to work together with Mexico to reduce trade-distorting policies, increase transparency, and ensure non-discriminatory treatment in grading of agricultural products.
“This is nothing short of a great victory for farmers and ranchers, because locking in our access to Mexican markets is critical to supporting farm income and strengthening rural communities. Mexico has historically been a great customer and partner and we are happy to have this resolved for our agricultural producers.
“We now hope that Canada will see the need to settle all of the outstanding issues between our two nations as well, and restore us to a true North American Free Trade Agreement.”
U.S. Grains Council Statement On U.S.-Mexico Trade Announcement
President and CEO Tom Sleight
"We are grateful for news today that the United States and Mexico have reached an agreement that will keep NAFTA modernization efforts moving. This agreement is a major step forward for our relationship with Mexico and is a result of hard work over the last year to closely examine our vital partnership.
"Mexico is extremely important to every sector we represent. Yet, so too is Canada, our second largest ethanol market and a top ten corn market. We hope the agreement today opens the door for Canada's reengagement, and we continue to oppose withdrawal from the existing NAFTA under any circumstances except the adoption of a new, beneficial and trilateral pact.
"We look forward to analyzing the provisions the United States and Mexico announced today and continued work toward the goal of an improved trilateral agreement."
Farmers Welcome Positive Trade Steps
The National Corn Growers Association President Kevin Skunes today released the following statement after an announcement that the United States and Mexico reached a trade agreement and that President Trump intends to replace NAFTA with the new agreement.
“NAFTA has been an unequivocal success story for American agriculture, dramatically expanding market access for all parties, integrating supply chains and providing economic opportunity to farmers and rural communities. Mexico is the largest export market for U.S. corn farmers and we are pleased the United States and Mexico are reaffirming mutual commitment to this important relationship.
“Farmers across the country have been closely following NAFTA negotiations and NCGA welcomes the opportunity to evaluate the details of this agreement with Mexico. However, the trilateral relationship is important, and we urge President Trump to reconsider terminating the underlying agreement until full trilateral negotiations have been concluded and a new agreement is secured. This new agreement has the potential to deliver the economic certainty rural America needs, prematurely terminating the existing agreement would only undermine that potential.”
NAFTA Progress Promising for U.S. Soy, Livestock Exports
Renewal of the North American Free Trade Agreement, or NAFTA, is looking more promising after President Trump announced today that the U.S. and Mexico have reached an “understanding” regarding sensitive bilateral issues. That news also opens the door for Canada to return to the table and move the trilateral agreement one step closer to ratification. This is exciting news for soy growers anxious to expand existing markets and pursue new ones.
American Soybean Association (ASA) President John Heisdorffer, a soy grower from Keota, Iowa, said, “We need NAFTA and new free trade agreements to build and ensure the certainty of our markets for soy and livestock product exports. Approval of NAFTA would be a big step in the right direction for us, with the uncertainty and market loss resulting from China’s tariff on U.S. soybeans. We are hopeful that a new NAFTA agreement will set the tone for more trade agreements to come.”
AFBF: Trade Progress with Mexico is a Good Start
American Farm Bureau Federation President Zippy Duvall
“Farmers and ranchers are ready to move forward on trade with our nearest neighbors. Farm Bureau is excited about this announcement and will review the details of the Mexican trade deal as they become available.
“Based on the gains both sides have seen with NAFTA, we expect this new ‘U.S.-Mexico Preliminary Agreement in Principle’ to build on that success for our farmers and ranchers. No trade deal is perfect, however. There is room for improvement, especially in provisions that affect U.S. fruit and vegetable growers, and we will continue to call for a resolution to those issues and a final deal that works for all of agriculture.
“This is the kind of trade news we have been waiting for. In a time when the U.S. economy is booming our farmers have been left behind. Open markets and good trade agreements will give American agriculture the opportunity to be a part of this booming economy. So we encourage the Administration to keep moving forward with Canada to address their anticompetitive milk pricing provisions. We need negotiators to convince Canadian officials that they, too, will benefit from a revised treaty. We are hopeful that the value of a continued and improved NAFTA for all will bring everyone back to the negotiating table.
“We are grateful for progress with Mexico, but there is still a lot of work to do outside of North America and we can’t stop here. We also need to resolve our trade issues with China to create better opportunities for American farmers and ranchers there. We look forward to working with the Administration to strengthen agricultural exports in new and existing markets around the world.”
Farmers for Free Trade Statement on NAFTA Progress
Today, Brian Kuehl, Executive Director of Farmers for Free Trade issued the following statement on news that the U.S. and Mexico had reached a preliminary NAFTA deal, paving the way for talks to begin again with Canada.
“While any news of progress on restoring NAFTA certainty is reassuring for American farmers, there are questions that remain on the nature of a final deal. Farmers will ultimately be judging any new NAFTA deal by two crucial measures: will it provide any new market access for American ag exports and will it do anything that erodes the enormous gains the original NAFTA provided? On those points, it will be necessary for Canada to rejoin the negotiations and for an agreement to be reached among all parties before a judgement can be made. American farmers know better than most that a deal isn’t done until the ink is dry and all parties have agreed.
“For our farmers, whose livelihoods depend on global markets, the end goal remains restoring NAFTA certainty, de-escalating a trade war that’s put them in the crosshairs, and returning to negotiating new trade agreements that open foreign markets hungry for made-in America farm exports. While we are encouraged the Administration is seeking out NAFTA stability, there is still significant work that remains in delivering on the trade priorities for farmers, ranchers, and rural communities.”
U.S. Wheat Associates Welcomes NAFTA Breakthrough and Market Development Investment
U.S. Wheat Associates (USW) believes today's breakthrough in NAFTA negotiations with Mexico and the announcement that the trade dispute aid package for U.S. agriculture includes new funding for export market development are welcome news for U.S. wheat growers.
"We are glad to see progress toward a renegotiated NAFTA that builds on the opportunities the existing agreement opened with Mexico's wheat importing flour millers. We hope it spurs negotiations with Canada to resolve outstanding issues like its discriminatory wheat grading law," said USW Chairman Chris Kolstad, a wheat farmer from Ledger, Mont. "The new market development program will help us plan new activities that will begin repairing the cracks in our crucial, long-term trade relationships with Mexico and other countries. We appreciate that the Trump Administration supports the need for additional market development in this unique trade environment."
Kolstad said U.S. Wheat Associates agrees with the National Association of Wheat Growers (NAWG) that while it is important to hold China and other countries accountable for unfair trade practices, policies that invited retaliation and created the need to provide federal aid to farmers are not the best course.
"Like NAWG, we believe the long-term solution is to end the trade war and move on to negotiating new trade deals that work for farmers and for our overseas customers," Kolstad said.
USDA Announces Details of Assistance for Farmers Impacted by Unjustified Retaliation
U.S. Secretary of Agriculture Sonny Perdue today announced details of actions the U.S. Department of Agriculture (USDA) will take to assist farmers in response to trade damage from unjustified retaliation by foreign nations. President Donald J. 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. As announced last month, USDA will authorize up to $12 billion in programs, consistent with our World Trade Organization obligations.
“Early on, the President instructed me, as Secretary of Agriculture, to make sure our farmers did not bear the brunt of unfair retaliatory tariffs. After careful analysis by our team at USDA, we have formulated our strategy to mitigate the trade damages sustained by our farmers. Our farmers work hard, and are the most productive in the world, and we aim to protect them,” said Secretary Perdue.
These programs will assist agricultural producers to meet the costs of disrupted markets:
- USDA’s Farm Service Agency (FSA) will administer the Market Facilitation Program (MFP) to provide payments to corn, cotton, dairy, hog, sorghum, soybean, and wheat producers starting September 4, 2018. An announcement about further payments will be made in the coming months, if warranted.
- USDA’s Agricultural Marketing Service (AMS) will administer a Food Purchase and Distribution Program to purchase up to $1.2 billion in commodities unfairly targeted by unjustified retaliation. USDA’s Food and Nutrition Service (FNS) will distribute these commodities through nutrition assistance programs such as The Emergency Food Assistance Program (TEFAP) and child nutrition programs.
- Through the Foreign Agricultural Service’s (FAS) Agricultural Trade Promotion Program (ATP), $200 million will be made available to develop foreign markets for U.S. agricultural products. The program will help U.S. agricultural exporters identify and access new markets and help mitigate the adverse effects of other countries’ restrictions.
“President Trump has been standing up to China and other nations, sending the clear message that the United States will no longer tolerate their unfair trade practices, which include non-tariff trade barriers and the theft of intellectual property. In short, the President has taken action to benefit all sectors of the American economy – including agriculture – in the long run,” said Secretary Perdue. “It’s important to note all of this could go away tomorrow, if China and the other nations simply correct their behavior. But in the meantime, the programs we are announcing today buys time for the President to strike long-lasting trade deals to benefit our entire economy.”
Background on Market Facilitation Program:
MFP is established under the statutory authority of the Commodity Credit Corporation (CCC) and administered by FSA. For each commodity covered, the payment rate will be dependent upon the severity of the trade disruption and the period of adjustment to new trade patterns, based on each producer’s actual production.
Interested producers can apply after harvest is 100 percent complete and they can report their total 2018 production. Beginning September 4th of this year, MFP applications will be available online at www.farmers.gov/mfp. Producers will also be able to submit their MFP applications in person, by email, fax, or by mail.
Eligible applicants must have an ownership interest in the commodity, be actively engaged in farming, and have an average adjusted gross income (AGI) for tax years 2014, 2015, and 2016 of less than $900,000. Applicants must also comply with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations. On September 4, 2018, the first MFP payment periods will begin. The second payment period, if warranted, will be determined by the USDA.
Market Facilitation Program
Commodity
Initial Payment Rate
Est. Initial Payment**
** Initial payment rate on 50% of production
Cotton
$0.06 / lb.
$276,900,000
Corn
$0.01 / bu.
$96,000,000
Dairy (milk)
$0.12 / cwt.
$127,400,000
Pork (hogs)
$8.00 / head
$290,300,000
Soybeans
$1.65 / bu.
$3,629,700,000
Sorghum
$0.86 / bu.
$156,800,000
Wheat
$0.14 / bu.
$119,200,000
Total
$4,696,300,000
The initial MFP payment will be calculated by multiplying 50 percent of the producer’s total 2018 actual production by the applicable MFP rate. If CCC announces a second MFP payment period, the remaining 50 percent of the producer’s total 2018 actual production will be subject to the second MFP payment rate.
MFP payments are capped per person or legal entity at a combined $125,000 for dairy production or hogs. Payment for dairy production is based off the historical production reported for the Margin Protection Program for Dairy (MPP-Dairy). For existing dairy operations, the production history is established using the highest annual milk production marketed during the full calendar years of 2011, 2012, and 2013. Dairy operations are also required to have been in operation on June 1, 2018 to be eligible for payments. Payment for hog operations will be based off the total number of head of live hogs owned on August 1, 2018.
MFP payments are also capped per person or legal entity at a combined $125,000 for corn, cotton, sorghum, soybeans and wheat.
For more information on the MFP, visit www.farmers.gov/mfp or contact your local FSA office, which can be found at www.farmers.gov.
NCGA: USDA Trade Aid Won’t Make Up for Lost Markets
The National Corn Growers Association (NCGA) today said plans unveiled by the U.S. Department of Agriculture (USDA) to provide aid to farmers negatively impacted by trade tariffs and ongoing trade uncertainty would be insufficient to even begin to address the serious damage done to the corn market because of the Administration’s actions.
The organization reiterated its call for the Administration to rescind tariffs, secure trade agreements and allow for year-round sales of higher blends of ethanol; no-cost actions that would allow for the marketplace to drive demand.
“NCGA members had a spirited debate on the prospect of trade aid during last month’s Corn Congress meeting,” said NCGA President and North Dakota farmer Kevin Skunes. “While most members prefer trade over aid, they support relief if it helps some farmers provide assurances to their local bankers and get through another planting season. Unfortunately, this plan provides virtually no relief to corn farmers.”
According to an NCGA-commissioned analysis, which NCGA provided to USDA and the Office of Management and Budget (OMB), trade disputes are estimated to have lowered corn prices by 44 cents per bushel for crop produced in 2018. This amounts to $6.3 billion in lost value on the 81.8 million acres projected to be harvested in 2018. USDA’s plan sets the payment rate for corn at just one cent per bushel.
“NCGA has understood from the beginning that this aid package would neither make farmers whole nor offset long-term erosion of export markets. But, even with lowered expectations, it is disappointing that this plan does not consider the extent of the damage done to corn farmers,” Skunes said. “Once again, we are calling on the Administration to settle trade disputes and support a strong Renewable Fuel Standard. These no-cost, immediate actions would deliver a real win for rural America.”
IA CORN ON USDA ANNOUNCES DETAILS OF TRADE AID
PRESIDENT MARK RECKER
The U.S. Department of Agriculture (USDA) announced today the details of a trade mitigation package for farmers. We appreciate President Trump and his administration hearing farmers concerns and understanding the dire situation that many of us now face due to tariffs and trade uncertainty. The aid package will provide some short-term relief, but as Secretary Perdue has stated himself, it will not make farmers whole.
The message we have for the administration is simple, “Corn farmers prefer to have market access to compete in a global marketplace, not rely on government assistance, for their livelihoods. Remove unnecessary trade barriers and restore our access to international markets.”
Profitability remains a huge concern for Iowa’s corn farmers. We now face the fifth consecutive year of declining farm incomes while facing high levels of uncertainty due to ongoing trade disputes and disruptions in the ethanol markets.
We look forward to working with USDA Secretary Perdue and his agency on the details and implementation of this plan. We urge the Trump Administration to enter into new trade agreements, allow for year-round market access of higher blends of ethanol including E15 and implement the Renewable Fuel Standard as intended.
Soybean Farmers Applaud Plan to Address Short-Term Tariff Impact
U.S. soybean farmers reacted positively to the release by the U.S. Department of Agriculture of details for a plan to offset the short-term impact of tariffs on U.S. agricultural exports, including a 25 percent duty imposed by China on soybean imports. The package includes a Market Facilitation Program that will make payments to producers of soybeans and six other farm commodities to partially offset the impact of tariffs on their 2018 production, a program to increase USDA purchases of various impacted U.S. agricultural products, and a Trade Promotion Program to develop foreign markets for American agricultural exports. In response to the announcement, the American Soybean Association (ASA) released the following statement:
“We welcome USDA’s announcement that soybean farmers will receive a payment on their 2018 production to partially offset the impact of China’s tariff on U.S. soybean imports,” said ASA President John Heisdorffer, a soybean producer from Keota, Iowa. “This will provide a real shot in the arm for our growers, who have seen soybean prices fall by about $2.00 per bushel, or 20 percent, since events leading to the current tariff war with China began impacting markets in June.” Heisdorffer explained, “This assistance will be particularly helpful to farmers who didn’t forward-contract their crop earlier this year and who need to arrange financing for planting next year’s crop.”
The expected value of the 2018 soybean crop has been under increasing pressure ever since tariffs were imposed first by the U.S. and then by China on July 6. In the last two months, USDA has raised its estimate for soybean production in 2018 to a record 4.6 billion bushels, reduced its estimate for soybean exports in the 2018-19 marketing year by 230 million bushels, and projected an 82 percent increase in soybean carryover stocks to 785 million from 430 million bushels by September 2019.
Heisdorffer also emphasized that, “ASA strongly supports USDA’s initiative to provide an additional $200 million to develop foreign markets through a Trade Promotion Program. Increasing funding for market development has been a top ASA priority for this year’s farm bill and is even more critical given the need to find new export markets for U.S. soy and livestock products.”
“While this assistance package will definitely help our farmers get through the bad patch we’re currently facing,” Heisdorffer continued, “we must remain focused on market opportunities in the long term. Indications that the NAFTA negotiations with Mexico are heading toward a successful outcome are also welcome news for U.S. soybean farmers.” Heisdorffer added that, “We hope a new NAFTA will build on the original agreement for U.S. soy and livestock product exports and that Canada will soon join the pact.”
The ASA President concluded that, “Finalizing NAFTA will set a precedent for additional Free Trade Agreements that we need to replace part of the soybean market we are losing in China. ASA will continue to encourage the Administration to find ways to address our Nation’s trade deficit by increasing exports, including in the agriculture sector.”
China was the number one export market for U.S. soybean growers in 2017, importing 31%, or nearly one in every three rows of total production, equal to 60% of total U.S soybean exports.
Agricultural Aid Package Helpful to Rural America But No Remedy to Protracted Trade War With China
Statement courtesy of Iowa Soybean Association President Bill Shipley who grows soybeans near Nodaway in southwest Iowa.
The U.S. Department of Agriculture’s announcement of almost $3.6 billion in aid to soybean farmers provides short-term assistance to rural America struggling under severe economic stress. It is not a long-term remedy to sharply declining commodity prices resulting from a trade war with China.
For a soybean farmer growing 400 acres of soybeans with a yield of 60 bushels per acre, a payment of roughly $1.65 per bushel for half the farm’s total production equals about $20,000. For perspective, soybean prices have declined by more than $2 per bushel since March, negatively impacting that same farmer nearly $50,000.
Farmers want positive movement on trade agreements and exports, not aid. Farm families and rural communities are experiencing real financial pain. This pain is likely to get worse before it gets better. Twenty-eighteen is indeed the year of the trade war story, but 2019 is the bigger story if this trade war continues.
Now is not the time for continued uncertainty for U.S. agriculture and the millions of jobs it directly impacts. In the last two months, USDA has raised its estimate for soybean production in 2018 to a record 4.6 billion bushels, reduced its estimate for soybean exports in the 2018-19 marketing year by 230 million bushels, and projected an 82 percent increase in soybean carryover stocks to 785 million from 430 million bushels by September 2019.
This combination makes a swift resolution more critical each day as farmers prepare for harvest and to meet with lenders, suppliers and land owners to plan for next year. Time is of the essence to resolve the trade war.
Tariff Relief Welcome, Farmers Still Need Open Markets
American Farm Bureau Federation President Zippy Duvall
“The administration’s tariff mitigation package is welcome relief from the battering our farmers and ranchers are taking in the ongoing trade war. There is no doubt that the tariffs from nations like China have led to lower crop and livestock prices. This comes on top of nearly five years of falling commodity prices that have led to lower revenues and higher debt levels for farmers and ranchers. Nationwide, income is at a 12-year low, so any assistance that may help farmers is greatly appreciated: We lost more than 150,000 farms to consolidation and financial failure in the U.S. during the decade that ended in 2017.
“The additional burden of tariffs on the goods we sell to China, Canada, Mexico and the European Union has been more than many farmers can bear. Today’s aid announcement gives us some breathing room, but it will keep many of us going only a few months more. The real solution to this trade war is to take a tough stance at the negotiating table and quickly find a resolution with our trading partners. If we’re going to turn our farm economy around for the long-term, we need to open more export markets with fair trade deals, and the sooner, the better.”
USDA Aid Package Fails to Consider All Commodities
Today, the U.S. Department of Agriculture (USDA) released details of the $12 billion package of aid to farmers hurt by retaliation resulting from the U.S. tariffs on Chinese goods. According to the USDA press announcement, assistance to wheat growers will be 14¢/bushel. NAWG President and Sentinel, OK wheat farmer Jimmie Musick made the following statement:
“In public remarks last week, USDA Secretary Perdue stated that the federal aid package for farmers being harmed by our current trade war with China won’t seem like it’s equitable. This was made clear today when the Administration introduced a proposal which poorly reflects the reality that all farmers are being harmed by tariffs.
“NAWG appreciates the Administration’s steps to hold China accountable for unfair trade practices but tariffs and the subsequent self-inflicted need to provide aid aren’t the answer. Farmers across the country want ‘trade, not aid’, especially wheat growers.
“About half of all U.S. wheat is exported, making new trade deals and establishing new global markets, a priority for all wheat farmers. As a result of the tariffs, China hasn’t purchased any wheat from the United States since March. Further, we estimate that the ongoing trade war will cause a 75¢/bushel price decrease and a reduction in global wheat production.
“U.S. Wheat Associates makes a similar note in their statement, which NAWG supports. The federal aid package invests in market development programs which we hope will repair some of the damage resulting from the tariffs. However, this solution is only temporary, and both organizations encourage the Administration to must move forward with new trade deals.
“Farm income is down, and rural America is enduring a prolonged economic downturn. This relief package shows that the Administration isn’t grasping the tough conditions being faced by farmers. The long-term solution is to end the trade war.”
USDA Announces Trade Relief Funds for Farmers
U.S. Department of Agriculture Secretary Sonny Perdue, accompanied by other USDA officials, announced details today on the $12 billion package to help farmers offset trade damage from unjustified retaliation by foreign nations.
Through the Market Facilitation Program (MFP) in the Trump Tariff Aid Plan, sorghum producers will receive 86 cents per bushel. This initial payment will only be made on 50 percent of 2018 actual production, and a second payment on the remaining 50 percent will be subject to reevaluation if warranted, USDA said in its announcement. The initial payments for sorghum are expected to total approximately $156 million.
"National Sorghum Producers would like to thank USDA Secretary Sonny Perdue and U.S. officials who have worked together to stand by U.S. farmers and provide much needed relief. This sends a strong message to the international trade community and will hopefully facilitate a speedy resolve to our current trade disputes. NSP appreciates the assistance provided, along with the purchase and promotion components that can help build toward more lasting solutions."
NMPF Statement on USDA Trade Aid Package
President and CEO Jim Mulhern
“Today’s announcement by the U.S. Department of Agriculture (USDA) on its tariff mitigation plan falls far short of addressing the losses dairy producers are experiencing due to trade retaliation resulting from the Trump Administration’s imposition of steel and aluminum tariffs.
“The dairy-specific financial assistance package provided by USDA – centered on an estimated $127 million in direct payments – represents less than 10 percent of American dairy farmers’ losses caused by the retaliatory tariffs imposed by both Mexico and China.
“The price drop resulting from these tariffs has not been gradual – it’s hurting U.S. dairy producers right now and will continue to do so. Since the retaliatory tariffs were announced in late May, milk futures prices have lost over $1.2 billion through December 2018. Milk prices for the balance of the year are now expected to be $1.10-per-hundredweight lower than were estimated just prior to the imposition of the tariffs on U.S. dairy exports.
“In addition, a new study by Informa Economics on the impact of the retaliatory dairy tariffs projects dairy farmer income will take a hit of $1.5 billion this year if the tariffs remain in place through the end of 2018. This loss compounds to $16.6 billion if the tariffs are left in place long term over the next five years, through 2023. The impact of lost sales to China account for most of that harm, accounting for 73 percent of the total. That sizable decline in farmer incomes will compound the low prices and financial losses that dairies have already felt.
“Dairy farmers are particularly vulnerable to downward price swings because, unlike crop farmers who harvest once a season, dairy producers harvest and market their product daily. If farmer incomes continue to suffer as projected, we will lose more farms.
“We appreciate that USDA has been seeking ways to help producers weather these volatile economic times. The product purchase program and the Trade Promotion Program are important elements of the overall package, and we will continue working with the department to best accomplish our shared goals of supporting dairy farmers’ prices in light of the harm caused by retaliatory tariffs. Although there may be a second direct aid package at the end of the year, dairy producers are greatly disappointed that the farmer aid portion of today’s trade relief package does not adequately address the harm done to dairy.
“Given today’s other news that the Trump Administration has reached a trade deal with Mexico, we are repeating our request that the administration provide relief to farmers by restoring normal trading conditions so that our product exports to Mexico – as well as to China – are not penalized by retaliatory tariffs. In addition, we believe it’s essential that the administration also pursue the opening of new market access opportunities through trade agreements that expand U.S. dairy exports. Those steps on trade would pay meaningful dividends to our farmers.”
CWT Assists with 2.5 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales
Cooperatives Working Together (CWT) member cooperatives accepted nine offers of export assistance from CWT that helped them capture contracts to sell 557,770 pounds (253 metric tons) of Cheddar and Monterey Jack cheese, 119,050 pounds (54 metric tons) of butter, and 1.819 million pounds (825 metric tons) of whole milk powder. The product has been contracted for delivery in Asia, the Middle East, and Oceania for the period from August through February 2019.
CWT-assisted member cooperative 2018 export sales total 46.701 million pounds of American-type cheeses, 12.645 million pounds of butter (82% milkfat) and 33.349 million pounds of whole milk powder to 31 countries on five continents. These sales are the equivalent of 959.000 million pounds of milk on a milkfat basis. Totals have been adjusted to reflect bid cancellations.
Four industry leaders elected to Farm Foundation Board
Four leaders working in diverse areas of the nation's food and agriculture sector have been elected to serve on the Farm Foundation Board of Directors. They are:
- Dan Basse, CEO of AgResources Inc., is a commodity analyst advising domestic and international companies across the food value chain.
- Robert Jones, Chancellor of the University of Illinois, is a crop physiology scientist who has spent the majority of his academic career working in Land Grant universities.
- Jackie Joyner-Kersee, a six-time Olympic medalist, works to provide youth, adults and families with the resources to improve their quality of life through her leadership of the Jackie Joyner-Kersee Foundation.
- Andy LaVigne is President of the American Seed Trade Association, with expertise in government relations, agriculture, food policy and international trade.
"We are excited to add the incredible expertise of these four leaders to the Farm Foundation Board," says Board Chair Joe Swedberg, a retired executive of Hormel Foods. "Their addition to the Board further expands the potential of Farm Foundation to respond to the enormous challenges facing the food and agriculture sector today."
In addition to the four new members, Jerome Lyman, a retired executive of McDonald's Corporation, and Bill Buckner, CEO of Noble Research Institute, were re-elected to their second, three-year terms on the board.
The four new members of the Board succeed John Hardin of Hardin Farms, Danville, IN; Wendy Wintersteen, President of Iowa State University; and Mike Martin, President of Florida Gulf Coast University, whose terms on the Board have expired, and Dan Glickman of the Aspen Institute, who stepped down from the Board.
Farm Foundation is an agricultural policy institute cultivating dynamic non-partisan collaboration to meet society's need for food, fiber, feed and energy. Since 1933, it has connected leaders in farming, business, academia, organizations and government through proactive, rigorous debate and objective issue analysis.
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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