Monday October 1 Ag News

LENRD Board adopts voluntary Integrated Management Plan

Being proactive in the conjunctive management of  groundwater and surface water is what led the Lower Elkhorn Natural Resources District (LENRD) Board of Directors to implement a voluntary Integrated Management Plan (IMP) for the protection of the resources.  The citizens of the LENRD depend on abundant water resources for domestic, agricultural, and industrial uses, all of which contribute to the economy of the district.  Water resources are also important for wildlife habitat and recreational uses such as fishing, hunting, boating, and swimming.

In early 2012, the LENRD board took action to initiate development of a joint voluntary IMP with the Nebraska Department of Natural Resources (NDNR), to provide a needed framework for wise, long-term management of finite water resources.

In 2013, the NDNR and the seven NRDs that make up the Lower Platte River Basin, formed the Lower Platte River Basin Coalition.  The Coalition’s mission is to coordinate efforts to protect the long-term balance of the Basin’s water uses and water supplies.  A primary action of the Coalition was to voluntarily develop a Lower Platte Basin Water Management Plan, which was adopted by all parties as of January 10, 2018.

The LENRD continued to move forward with their individual plan, and developed a Stakeholder Advisory Committee consisting of representatives from: Agriculture, Industry, Public Water Supply, Domestic well owners, Environmental, as well as County and City officials. This Committee met in 2014 and 2015 to help prioritize goals and action items of the IMP.  The district continued to work with the NDNR to develop a working draft over the next several years.

The NDNR and the LENRD jointly held a public meeting to discuss and answer public questions on the IMP on August 9, 2018.  A public hearing was then held on August 23, 2018, where public testimony on the final version of the plan was recorded.  After reviewing the testimony, the LENRD board voted to approve the IMP at their September 27th board meeting.

LENRD Assistant Manager, Brian Bruckner, said, “The purpose of this voluntary IMP is to achieve and sustain a long-term balance between water uses and water supplies.  Protection of existing users is also a major factor since there is still available water in the Basin, and the District is continuing to add new users on an annual basis. This will be achieved through coordinated management of hydrologically connected groundwater and surface water resources.  The voluntary IMP is considered a proactive approach to protecting available water supplies to better ensure that the resource will be available for future generations and also makes the District eligible to apply for grant funding through the NDNR Water Sustainability Fund.”

In other action, the board authorized LENRD General Manager, Mike Sousek, to sign the contract with JEO Consulting Group to update the District’s Hazard Mitigation Plan.

The board also authorized the signing of an interlocal agreement for obtaining seedling trees and shrubs with the Nebraska Association of Resources Districts for the LENRD’s Conservation Tree Program.

In other business, staff was authorized to solicit bids for flow meter maintenance on mechanical meters in Madison and Antelope Counties for 776 meters and will sign a contract with the lowest responsible bidder.

The next committee meeting will be held on Thursday, October 11th at 7:00 p.m..  The next board meeting is scheduled for Thursday, October 25th at 7:30 p.m. at the LENRD office in Norfolk.



Ricketts Receives “High Octane Champion” Award from Nebraska’s Ethanol Industry

At a ceremony at the site of KAAPA Ethanol Holding’s future headquarters in Kearney, Governor Pete Ricketts has been recognized as a 2018 High Octane Champion by Renewable Fuels Nebraska, the trade association for Nebraska’s ethanol industry. The award was developed by the RFN membership as a way to recognize public policy leaders that strongly support Nebraska’s $5 billion ethanol industry.

“As Nebraska’s ethanol industry, we are pleased to recognize Governor Ricketts as a national leader among his peers on ethanol and biofuels advocacy. In short, he gets it” said RFN Executive Director Troy Bredenkamp. “Whether it is meetings at the White House or frank conversations with the EPA administrator, Governor Ricketts has taken many opportunities to advocate for ethanol and express the benefits of biofuels to the Nebraska and US farm economy. This award is a small token of our appreciation and a way to recognize him for all that he does for us on a regular basis.”

Ricketts took the lead on offering up the state of Nebraska to conduct a comprehensive and scientific study to test the use of E30 blended gasoline in conventional, non-flex fuel state vehicles. After over a year of consideration and constant pressure by Ricketts, the EPA announced just last week that the application for the E30 pilot study was approved and can begin. The study will be administered by the state of Nebraska in conjunction with the University of Nebraska and will be completed in 18 months. Much attention will be on Nebraska and this study, with ethanol proponents such as RFN excited at what the data may show and how higher, mid-grade ethanol blends could be used in the future.

“We fully expect this study to show what we already know; that is that conventional, non-FFV vehicles can utilize mid-grade blends of ethanol fuels without any adverse impact to the vehicles, and huge potential benefits to the environment and the US farm economy.” said Bredenkamp. “We would not be where we are at without Governor Ricketts leadership on this and many other ethanol issues, and Nebraska’s ethanol producers wants him to know we appreciate everything he has done, and continues to do, on behalf of Nebraska and America’s ethanol industry.”



TESTING FOR HAY QUALITY
Bruce Anderson, NE Extension Forage Specialist

How much did the spring and summer's weather affect the feed value of your hay?  You don’t know?  Then forage test.

The nutrient concentration of nearly every bushel of corn is similar, but with hay it varies considerably.  Why does this happen?  Well, there are many causes.  For example, leafiness of the hay, or maturity of the plant when your hay was cut, or even how you handled the hay during raking and baling all can affect its feed value.

This year, weather conditions have made things more complicated.  This spring's cool, dry weather in many areas caused many folks to delay first cutting.  Then summer rains damaged hay while leaf diseases, mature plants, and other factors made much alfalfa lower in quality.  Also during summer we had periods of hot and very humid weather that often caused plants to burn off their easily digested nutrients at night, leaving us with hay that looks really good but is high in fiber and low in energy.

Grass hay might be even more difficult to predict.  Some fields had fewer seedheads than normal.  This might give higher quality hay, but if harvest was delayed in hopes of increasing yield or if summer heat affected grass quality like it affects alfalfa, grass hay quality might actually be lower.  And when late growth was stimulated by extra rain, plants used many nutrients for increased tonnage instead of quality.

So you see, this year, just like always, forage testing is important.  It is the only way that you can find out for sure ahead of time what the feed value is of your hay.

So gather samples now for testing, before feeding your animals and before it's too late. 



Nebraska Beef Council Conference Call October 2, 2018

The Nebraska Beef Council Board of Director's will have a conference call on Tuesday, October 2, 2018 beginning at 1:00 p.m. CDT at the Nebraska Beef Council office at 1319 Central Ave., Kearney, NE. The NBC Board of Directors will discuss the year-end Federation investment. For more information, please contact Pam Esslinger at pam@nebeef.org 



Congress allows farm bill to expire; strands programs without funding

Congress allowed the 2014 farm bill to expire yesterday, Sept. 30, and took no action to renew or extend it. In response, Anna Johnson, policy manager with the Center for Rural Affairs, said the organization is disappointed that today, Oct. 1, 2018, has come without the passage of a new farm bill or an extension of the previous farm bill.

“When funding for farm bill programs is tight, every available program dollar delivers value to rural America,” Johnson said. “Congress is irresponsible to leave more than a billion dollars for demonstrably effective programs on the table without passing a farm bill extension, as they continue to debate a final bill.”

Programs stranded with funding but no authority to operate include the Conservation Stewardship Program, the Conservation Reserve Program, the Regional Conservation Partnership Program, and the Agricultural Conservation Easement Program. In addition, other programs that invest in rural economies have lost their funding, including the Rural Microentrepreneur Assistance Program, the Beginning Farmer and Rancher Development Program, the National Organic Certification Cost-Share Program, and several others.

“Congress is allowing programs that serve our beginning farmers and rural communities to fall by the wayside in a reckless manner,” Johnson said. “Allowing a farm bill to expire and stranding this many programs is a careless action and leaves many farmers and ranchers behind.”

She said Congress failed rural America when they chose not to pass a farm bill or farm bill extension. Johnson and the Center for Rural Affairs urge Congress to pass a farm bill extension quickly to fund these programs.

“Put politics aside, come to the negotiating table, and pass legislation that serves rural America,” she said.



Ricketts Praises the United States-Mexico-Canada Agreement

Today, Governor Pete Ricketts issued a statement following news from the White House on a new trade agreement with Canada and Mexico named the United States-Mexico-Canada Agreement.

“President Trump has delivered on his promise to finalize a new trade deal with Canada and Mexico,” said Governor Ricketts.  “The importance of this new deal to Nebraska cannot be overstated.  These two countries are top customers for Nebraska, and are critical markets for growing trade opportunities.  This new deal makes progress in the three areas Nebraska’s leaders outlined for trade negotiations with these countries over a year ago.  Most importantly, it helps give Nebraska’s farmers and businesses much-needed certainty, and will help us grow these important trade relationships for years to come.”

NEBRASKA’S TRADE RELATIONSHIP WITH CANADA AND MEXICO
Mexico is Nebraska’s second largest export market and Canada is the state’s third largest market.  Combined, the countries purchased over $2.4 billion worth of Nebraska’s exports in 2016.  Canada and Mexico are also substantial direct international investors in Nebraska, employing about 6,400 people in the state.  Mexico is the state’s largest export market for corn, dairy products, and sugar/sweeteners.  Canada is Nebraska’s largest export market for ethanol and dog and cat food.

Here is a breakdown of Nebraska’s top six agricultural exports to Canada and Mexico (combined):
·         Corn: $315 million
·         Beef: $246.6 million
·         Soybeans and Soybean Products: $217.6 million
·         Sugars and Sweeteners: $124.2 million
·         Ethanol: $88.5 million
·         Pork: $78.3 million



Statement by Steve Nelson, President, Regarding U.S., Canada, Mexico Trade Agreement (USCMA)

“The announcement that the U.S., Canada, and Mexico have come to terms on a new and improved free-trade agreement is a major ‘win’ for Nebraska’s farmers and ranchers and an important step forward in helping eliminate trade related uncertainty in agricultural markets.”

“Mexico and Canada are Nebraska’s two largest customers for agricultural goods. This new deal not only maintains the positive market access system for our major commodities in Nebraska, but also sweetens the pot by addressing many concerns for our dairy producers, including improved market access.”

“Exports of Nebraska agricultural goods to these two countries exceeded $2.9 billion in 2016 and accounted for 45 percent of Nebraska’s total agricultural exports that year. Mexico and Canada are major customers for Nebraska beef and Mexico has been a top customer for Nebraska corn, and the second-largest customer for Nebraska soybeans and wheat. These countries are also major importers of ethanol and distillers dried grains from Nebraska.”

“Any way you slice it, Mexico and Canada are critically important customers for Nebraska agriculture. We applaud the President for his work to get the U.S., Canada, Mexico Trade Agreement (USCMA) done. This is more positive news following the signing of an updated free trade deal with South Korea (KORUS), and news that the U.S. is in negotiations on a new bilateral deal with Japan, and in talks with the European Union. While there is still much work to be done with China, these actions have us on the right path to providing access for Nebraska agriculture commodities to global customers who are critical to Nebraska farm and ranch families. We look forward to continuing to work with this administration to grow market access for our products around the globe and with Congress to assure passage of the USCMA.”



Fischer Statement on U.S.-Canada-Mexico Agreement

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today after the administration announced the United States-Mexico-Canada Agreement (USMCA):

“Mexico and Canada are Nebraska’s two largest trading partners. I’m grateful to President Trump for following through on his commitment to negotiate a better trade deal between our three countries. I’m optimistic this agreement will bring good opportunities to Nebraska producers and our state.”



Smith Statement on NAFTA Agreement

Congressman Adrian Smith (R-NE) released the below statement following the Trump administration’s announcement of a trade agreement between the United States, Mexico, and Canada.

“I’m very pleased to hear the administration has come to an agreement with Mexico and Canada to update NAFTA with a new US-Mexico-Canada Agreement (USMCA) which builds on its successes. I have long supported a three-country agreement because it is vital to Nebraska’s agricultural producers and to our rural economy. I look forward to considering USMCA as Congress studies the details and I commend President Trump’s team for their success in reaching this point.”

Smith is a member of the House Ways and Means Committee which has jurisdiction over trade.



Updated North American trade agreement reached

Iowa Secretary of Agriculture Mike Naig issued the following statement regarding the announcement that the U.S., Canada and Mexico have reached an updated North American trade agreement.

“This is the welcome news our farmers need as they bring in this year’s harvest and plan for 2019. Canada and Mexico are our first and second largest trading partners. This agreement brings much needed certainty to our producers and ensures access to these critical markets going forward. This brings positive momentum as the Administration works to conclude other trade agreements. As I have done since becoming Secretary, I will continue to push for opening additional export markets and greater market access for Iowa agriculture products like higher blends of renewable fuels and the approval of E15 year round.”



IOWA CORN FARMERS WELCOME US-MEXICO-CANADA AGREEMENT
ICGA PRESIDENT CURT METHER

While we look forward to the opportunity to fully evaluate the details of this agreement made in principle with Mexico and Canada, we applaud the Trump Administration for finding a path forward with these two important trade partners as it has the potential to deliver market access for Iowa farmers and rural America ne­ ed.

Trade policy has a significant impact on Iowa’s corn farmers. The success of our rural economies depends on expanding markets for corn in all forms. For Iowa agriculture to thrive, we need trade agreements that recognize how important it is that the U.S. meat and grain industries including beef, pork, corn, soybeans, and biofuels, have market access at a competitive level in North America and across the globe.  ICGA is committed to banding with other farm organizations in working with President Trump’s Administration on ways to both preserve and expand upon agriculture sector gains achieved in the North American market.

Since its passage more than two decades ago, the North American Free Trade Agreement (NAFTA) has profoundly changed North American agriculture. NAFTA eliminated nearly all tariff and quota restrictions in agriculture resulting in an integrated system between Canada, Mexico and the United States. This has propelled these countries to the top of the U.S. list in importance for agricultural trade. For the past 20 years, U.S. agricultural exports to Canada and Mexico tripled and quintupled, respectively. One in every 10 acres on American farms is planted to feed our neighbors to the north and south.

Mexico is the number one market for U.S. corn and the number two market for U.S. distiller's dried grains with solubles (DDGS). Canada ranks as our ninth largest customer for U.S. corn, DDGS, and ethanol.  The U.S. meat industry has also benefited from duty-free access to Mexico and Canada. These are both top five markets for beef and pork, with Mexico being the leading volume market for pork and second largest market for beef.

Iowa farmers want to continue to serve this important international customer base and further expand our export opportunities. We look forward to working the Trump Administration and Congress to preserve and expand our competitive edge in agriculture with this vital agreement.



Iowa cattlemen eager to see details of USMCA

For more than a year, Iowa’s cattle producers have waited with bated breath, hoping that the North American Free Trade Agreement would be renegotiated without harming the beef industry. On Oct. 1, a last minute agreement between the U.S., Canada and Mexico, dubbed USMCA, was announced. USMCA is intended to replace the 24-year-old NAFTA trade deal.

Citing unfair provisions for the manufacturing industry, President Trump has made multiple threats to withdraw the U.S. from the agreement completely, however, NAFTA has been one of the greatest success stories in the history of the American beef industry. The agreement removed tariffs on U.S. beef exports to Canada and Mexico, developing roughly $2 billion in annual sales. Since NAFTA was implemented in 1993, U.S. beef exports to Mexico have increased more than 750%.

Renegotiations have been ongoing since August of 2017, causing uncertainty for two of the U.S. beef industry’s top export markets. In 2017, Mexico was the third most valuable export market for U.S. beef and Canada was fourth. The two countries account for nearly $70 per head of value.

“Our desire has always been to protect the market access and scientific standards that NAFTA has provided for the US beef industry for nearly 25 years. We are eager to hear more details about USMCA and hope that it will continue the successful trade relationship we’ve had with Canada and Mexico,” said JanLee Rowlett, Iowa Cattlemen’s Association government relations manager.

Each of the three countries involved must renew USCMA every six years. If it is not renewed, the agreement will expire after 16 years.

The new trade agreement does not affect any of the tariffs the U.S. imposed on steel and aluminum from Canada, and a 10% tariff on prepared beef products sent to Canada remains in place. The Canadian tariff was put in effect in July in retaliation for U.S. steel and aluminum tariffs.

Congress must approve the new trade agreement, in a vote expected to take place next year.

The Iowa Cattlemen’s Association will continue to encourage trade agreements that are favorable for the beef industry, including a bilateral agreement with Japan and increased trade with China.



Secretary Perdue Statement on United States-Mexico-Canada Agreement

U.S. Secretary of Agriculture Sonny Perdue today issued the following statement regarding the announcement of a United States-Mexico-Canada Agreement (USMCA):

“The great news of a new USMCA deal is important for our economy as a whole, including the agricultural sector, which counts Canada and Mexico in our top three trading partners. I have long said that I believe our country is located in the best neighborhood on Earth – North America – with valuable allies to our north and south.  We have secured greater access to these vital markets and will maintain and improve the highly productive integrated agricultural relationship we have as nations. Notably, as one of the President’s top goals, this deal eliminates Canada’s unfair ‘Class 7’ milk pricing scheme, cracks open additional access to U.S. dairy into Canada, and imposes new disciplines on Canada’s supply management system. The agreement also preserves and expands critical access for U.S. poultry and egg producers and addresses Canada’s discriminatory wheat grading process to help U.S. wheat growers along the border become more competitive.

“As we celebrate this breakthrough, it is worth noting that there were many detractors who said it couldn’t be done.  But this is further proof that President Trump’s trade negotiation strategy is working. A renewed USMCA, a new KORUS agreement, and the continued progress with Japan, can lead to further deals with other trading partners like the European Union and China. The dominoes are falling and it is good news for U.S. farmers. I thank President Trump and our U.S. Trade Representative, Ambassador Lighthizer for their perseverance, leadership, and hard work.”



NPPC Hails U.S.-Mexico-Canada Trade Agreement; Designates Congressional Ratification As ‘Key Vote’

The National Pork Producers Council praised the Trump administration for establishing a free trade agreement that preserves zero-tariff access for U.S. pork to Mexico and Canada. The agreement, which was sent by the administration to Capitol Hill for ratification today, will be designated by NPPC as a “key vote” to ensure that its members are informed about “yes” and “no” votes on the pact.

“We thank the administration for its diligent work to complete recent agreements that maintain zero-tariff access to three of U.S. pork’s top five markets,” said Jim Heimerl, NPPC president and a pork producer for Johnstown, Ohio. “The three-way pact with Mexico and Canada, our largest and fourth largest export markets, respectively, and the recently signed agreement with Korea represent welcome momentum during what has been a challenging year.”

Last week, the administration formally signed a modernized free trade agreement with South Korea that retained the zero-tariff access to U.S. pork’s fifth largest export market.

Heimerl added, “We urge Congress to quickly ratify the U.S.-Mexico-Canada trade agreement, and we’ll closely monitor this as a key vote for our members, who have demonstrated incredible perseverance as the administration realigns U.S. global trade policy.”

U.S. pork is currently on three trade retaliation lists that have placed 40 percent of total exports under punitive tariffs. NPPC continues to urge the administration to remove tariffs on Mexican steel and aluminum imports so that country will lift its 20 percent retaliatory tariff on U.S. pork.



U.S. Grains Council Statement On Trade Agreement With Mexico And Canada
USGC Chairman Jim Stitzlein:

“The U.S. Grains Council (USGC) is very pleased to see the United States, Mexico and Canada have reached a new agreement.

"No trade agreement has had more impact on our sector than NAFTA which prompted explosive growth in our export sales to both countries as well as the development of a fully-integrated grains and livestock supply chain within North America. Over the past two decades, this agreement has proven beneficial for the producers, agricultural sectors and economies of all three countries.

"We appreciate the dedicated, hard work of our negotiating team to achieve this outcome with our neighbors and customers and look forward to fully examining the new text as the process of approving the new agreement begins a new phase."



New 'NAFTA' Announced: Soybean Growers Pleased Administration has Reached Deal with Canada and Mexico

The Administration’s announcement that it has reached an agreement with Canada, bringing to fruition a trilateral trade agreement including Mexico, is welcome news for soy growers. Once approved by Congress, a finalized U.S.-Mexico-Canada agreement will bring stability back to the North American markets.

Under NAFTA, U.S. soy exports to Canada and Mexico were almost $3 billion in 2017, and U.S. soy exports to Mexico have grown four-fold under the agreement. Mexico is now the second largest export market for U.S. soybeans and meal. Additionally, roughly $43 billion of agriculture products are exported to Canada and Mexico every year.

ASA President and soybean grower from Keota, Iowa, John Heisdorffer said, “Our soybean harvest this year is large, and we are facing great uncertainty in China, so a modernized NAFTA is timely and beneficial for our farmers and rural communities.”

The new deal, dubbed USMCA, will help stabilize the U.S.’s two neighboring export markets for growers, something that the American Soybean Association (ASA) has been requesting of the Administration. And, this news follows last week’s announcement that the U.S. had signed a new free trade agreement with Korea and that negotiations are in progress with Japan.

“With USMCA, KORUS, and other agreements in sight, we are hopeful that a negotiated solution to the China tariffs could be in sight,” commented Heisdorffer.



Corn Farmers Praise New US-Mexico-Canada Agreement

The National Corn Growers Association President Lynn Chrisp today released the following statement after an announcement that the United States, Canada, and Mexico reached an agreement in principle on the North American Free Trade Agreement (NAFTA), renamed the US-Mexico-Canada Agreement (USMCA).

“Farmers across the country have been closely following NAFTA negotiations and reminding the administration of its promise to ‘do no harm’ to agriculture.”

“NAFTA has been an unequivocal success story for American agriculture, opening markets that since enactment have become vitally important to U.S. corn farmers, and providing certainty to farmers and the rural economy. We applaud USTR for reaching a new agreement and look forward to thoroughly evaluating it to determine if it continues to benefit American agriculture.”

Last year the United States exported $3.2 billion of corn and corn products to Mexico and Canada, supporting 25,000 rural jobs. The U.S. Chamber of Commerce estimates that trade with Canada and Mexico supports 14 million U.S. jobs across many sectors. 



New US-Mexico-Canada Agreement "Great News" for Cattle Producers

Kevin Kester, a fifth-generation California rancher and President of the National Cattlemen’s Beef Association, today released the following statement in response to news that negotiators have reached agreement on a new U.S.-Mexico-Canada trade agreement:

“This new agreement is great news for American cattle producers, and another sign that President Trump’s overall trade strategy is working. Over the past quarter century, free and open trade between the United States, Mexico, and Canada has been tremendously successful for our producers, and we’re pleased that we’ll be able to maintain our existing market access while seeing other U.S. producers get a better deal than they’ve gotten in the past. Hopefully Congress will approve this new deal early next year and provide American producers with the certainty we need to continue selling our products to our partners to the north and south.”



Farm Bureau Applauds Trade Progress with Canada
President Zippy Duvall

“Today’s announcement regarding the United States-Mexico-Canada Agreement is welcome news. This was a hard-fought win and we commend the administration for all the efforts to solidify the trading relationships we have with our North American neighbors.

“Farm Bureau will review the details of the new treaty as they become available, but the elimination of Canada’s Class 7 dairy pricing program is a clear victory for our farmers. We also now have access to an additional 3.6 percent of Canada’s dairy market, which is even better than what we would have achieved under TPP.

“Trade is critical to agriculture, especially trade with our two closest neighbors. The USMCA builds on the success our farmers and ranchers have seen from NAFTA.

“Mexico, meanwhile, is still an $18 billion market for U.S. ag products. The USMCA includes new provisions to provide science-based trading standards, timely review of products produced through biotechnology and gene editing and new provisions on geographic indications.

 “We are grateful for the progress with Mexico and Canada, and we look forward to working with the Administration to strengthen new and existing opportunities for agricultural trade across the globe.”



NGFA, NAEGA commend Trump administration for achieving trilateral trade agreement with Mexico, Canada

The National Grain and Feed Association (NGFA) and North American Export Grain Association (NAEGA) today commended the Trump administration and its counterparts in Mexico and Canada for reaching a trilateral trade agreement.

"Given the integrated nature of the North American economy, including within the food and agricultural sector, it was extremely important to reach a trade agreement that included all three countries," said NGFA President and Chief Executive Officer Randy Gordon and NAEGA President and Chief Executive Officer Gary Martin. "The announcement of a new U.S.-Mexico-Canada Agreement (USMCA) represents a significant, positive step in modernizing and further enhancing North American food and agricultural commerce that has and will continue to benefit economic growth and consumers in this hemisphere, and further enhance investment and food security."

NGFA and NAEGA said they looked forward to working with all three governments as part of the review and ensuing implementation of the agreement.

"Our industry is encouraged about reports that the final agreement takes steps to modify some existing impediments to agricultural trade, including dairy, and will preserve some form of the trilateral Chapter 19 tariff dispute-settlement mechanism contained in the North American Free Trade Agreement," Gordon and Martin said.

The NGFA and NAEGA also said they were particularly pleased by what they understand to be several efforts to preserve and enhance current trade terms in North America that were agreed to initially between the United States and Mexico. These include: the retention of zero tariffs on agricultural products traded between the United States and Mexico; the addition of 21st century language to enhance information exchange and cooperation on agricultural biotechnology trade-related matters; an agreement to strengthen disciplines for science-based sanitary and phytosanitary (SPS) measures to facilitate trade; and an agreement that grading standards and services on agricultural products, including grains and oilseeds, will operate independently from domestic registration systems for grain and oilseed varieties. Concerning SPS measures, the NGFA and NAEGA said they particularly were pleased by the inclusion of a provision - advocated by both groups - that would commit the three countries to provide notification of any adverse SPS import issues within five days, versus the seven days that had been agreed to under the Trans-Pacific Partnership Trade Agreement from which the United States withdrew.

The NGFA and NAEGA expressed appreciation to the White House, U.S. Trade Representative Robert Lighthizer and the team of negotiators within the Office of the U.S. Trade Representative, as well as to negotiators from Mexico and Canada, for their persistence and determination to reach an agreement that is in the best interests of all three countries.

The NGFA and NAEGA said they looked forward to providing further analysis and input once the full details of the agreement are examined, and to participating fully in the process as the next phase of forwarding the new agreement to the legislative bodies in each country begins. The Associations also look forward to building on the successful USMCA to support U.S. trade initiatives with Japan, China, the European Union and other markets.



U.S. Dairy Organizations Thank Trump Administration for Concluding New Trade Agreement with Canada, Mexico

The trade agreement reached last night between the United States and Canada includes the elimination of Canada’s Class 7 pricing system and creation of some additional market access, two important objectives of the U.S. dairy sector.

The National Milk Producers Federation, (NMPF), the U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association (IDFA) thanked Trump Administration negotiators for fighting hard against Canada’s trade-distorting practices. The groups look forward to reviewing the text of the U.S. -Mexico-Canada Agreement (USMCA), in particular the dairy provisions, to better understand the benefits to U.S. agriculture and dairy.

Canada has strictly controlled imports for decades to limit the supply of milk in the country. Recently, as milk production in Canada has grown, it created the Class 7 pricing system to dump surplus milk proteins onto global markets, in direct competition with exports from the United States and other nations.

From a strategic standpoint, the agreement announced Sunday night will benefit America’s dairy sector because it preserves the overall structure of the 24-year-old North American Free Trade Agreement (NAFTA).

“The outlines of the NAFTA pact remain intact, which will allow the U.S. agricultural sector to continue developing new international markets for our farmers,” said Tom Vilsack, president and CEO of USDEC. “We also need to pursue new free trade agreements with other nations and resolve our trade conflicts with China. It is imperative that the United States remains an integral player in driving the global trade agenda.”

While Canada will remain a largely self-contained, protected milk market, “this agreement, when implemented, should give us additional marketing opportunities that will allow us to provide high-quality American dairy products to Canada, which means we’ve made incremental progress,” said Jim Mulhern, president and CEO of NMPF. “We appreciate that the Trump Administration continually raised the profile of our issues at the negotiating table.”

“Maintaining dairy market access in Mexico and improving market access into Canada were IDFA’s top priorities during the talks to modernize NAFTA,” said Michael Dykes, D.V.M., president and CEO of IDFA. “We’re also pleased that the Administration was successful in getting Canada to eliminate Class 7 pricing. This new agreement will preserve our vital partnership with both countries and allow the U.S. dairy industry to seek more export opportunities.”

The dairy groups said that the ultimate benefit of the new USMCA will depend on how it is implemented. Now that a tentative trilateral agreement has been reached, the dairy organizations urged the governments of the three nations to remove their tariffs on agricultural exports – as well as steel and aluminum – that have been sticking points in relations between the United States, Mexico and Canada.

The three organizations also thanked the many members of Congress who insisted than an increase in dairy market access be an essential outcome to the negotiations.



U.S., Canada, Mexico Reach Deal on New Trade Pact

In a break to what has been more than a year of feuding and tense negotiations, the U.S. has reached an agreement with Canada and Mexico on a new trade pact, the U.S.-Mexico-Canada Agreement (USMCA).

While announcement is a bit of welcome news to family farmers and ranchers who are bearing the brunt of retaliatory tariffs and trade disruptions, the agreement should do more to institute a fair trade agreement framework that benefits family farmers and rural communities, according to National Farmers Union (NFU).

NFU President Roger Johnson released the following statement in response to the new trade pact:

“After more than a year of escalating trade tensions, the prospects of progress on trade with our two closest trading partners is encouraging. Farmers have seen their income plummet over the past five years, only to have farm prices further depressed by trade disruptions. While this agreement is certainly no cure-all, it is hopefully a start to repairing our trade relationships around the world, to restoring our reputation as a reliable trading partner, and to resolving longstanding issues with discrimination against U.S. wheat.

“Farmers Union supports the President’s goals to balance trade and restore sovereignty that has been lost as a result of past trade agreements. We have long been at the forefront of the fight for fair trade that puts family farmers and ranchers on an even playing field with corporations and the rest of the world. Yet a couple areas in this agreement appear to fall short of these goals. Progress was made on the dispute settlement mechanisms—provisions that place tremendous power in the hands of multinational corporations—but the ISDS framework remains. And country-of-origin labeling, which is supported by 90 percent of Americans, was unfortunately left out of the agreement.”



Wheat Grower Organizations React to New Trade Deal with Canada and Mexico

The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) welcome the Administration’s decision to move ahead with an updated trade deal with Canada and Mexico and look forward to learning more about the details.

We are pleased that the Administration recognizes the need for policy certainty with some of our top customers. While NAWG and USW must review the language of the new deal, we hope to see provisions that are positive for wheat farmers.

The current North American Free Trade Agreement (NAFTA) is critically important for wheat farmers who depend on the enormous Mexican market that NAFTA built, but it did have room for improvements, particularly on grain trade with Canada. NAWG and USW called for a fix to the Canadian grain grading system which automatically designates U.S. wheat as the lowest grade simply because it is foreign. This means U.S. farmers producing the highest quality wheat arbitrarily get less value for their crop.

Farmers need to understand that nothing has changed yet, but we are pleased to see that USTR has made progress in resolving this issue, with Canada agreeing to grade imported wheat with the same requirements as Canadian wheat. We will follow the implementation of this commitment closely to ensure U.S. farmers can finally have reciprocal access to the Canadian market.



Statement of NCFC President Chuck Conner on USMCA Announcement

“Today’s announcement that an agreement has been reached on a new United States-Mexico-Canada Trade Agreement is welcome news for America’s farmers and their co-ops. Ensuring continued trade with two of our most important partners is especially important as agricultural producers continue to face low prices across a broad swath of commodities. We look forward to reviewing the details of the new agreement over the course of the next few days.”



Corn Farmers Deserve $.50-$1.00 Per Bushel Compensation From MFP

“The Trump Administration should be paying corn farmers at least $.50 per bushel if not $1.00 per bushel in compensation for the low prices resulting from an estimated 800 million bushels of lost domestic corn demand resulting from the ethanol waivers EPA and the Administration has provided big oil companies since 2017,” said Gale Lush, American Corn Growers Foundation (ACGF) Chairman, a corn, soybeans and wheat farmer from Wilcox, NE. “It’s one thing to kill export markets for corn with this tariff war. It’s even worse to kill homegrown domestic ethanol-driven corn demand right here in our own American market. Congress also needs to prove they have learned the farm policy lessons of the past 40 years, including the fact that U.S. corn exports in 2018 are only back to the level of 1980. Fortunately, ethanol had stepped in and was saving us temporarily with stronger corn prices. Without the ethanol Renewable Fuel Standard (RFS) farmers and rural America would have had an economic meltdown waiting for the ‘export-oriented, free trade’ farm and trade policy to deliver as promised. Congress needs to get on the ball and take whatever measures are necessary to protect and strengthen the RFS because Trump’s tariff trade war is hurting corn exports and the EPA’s big oil company RFS waivers are destroying domestic corn demand. This all adds to U.S. corn inventory and lower prices. Farmer-owned grain reserves in the new farm bill could manage supply without stimulating competing foreign grain production from higher prices. USDA should pay farmers commercial storage rates for storing corn and soybeans in on-farm storage because Trump’s tariffs and ethanol waivers will cause us to store grain for years.”

Dan McGuire, ACGF Policy Director said, “RFS ethanol waivers for big oil companies have reduced domestic corn demand by about 800 million bushels by some estimates, adding that 800 million bushels to corn ending stocks. USDA’s September 12th WASDE report projects 2018/19 corn ending stocks at 1.774 billion bushels and corn prices at $3.50. Had ethanol waivers not cut that 800 million bushels of corn demand corn ending stocks would be 974 million bushels. That’s important because the higher ending stocks in USDA’s latest report translate to an 11.7% ending stocks-to-use ratio. That ratio would be 6.4% had that 800 million bushels been utilized for domestic ethanol and corn prices would be higher. In 2011/12 when corn ending stocks were 989 million bushels corn prices averaged $6.22 per bushel. That is strong historical evidence. Congress should immediately add at least $.50 per bushel, and a strong case can be made for adding $1.00 per bushel for corn in the new farm bill as compensation to corn farmers for the lower corn prices caused by tariffs and weakened domestic ethanol demand from the ethanol RFS waivers that the EPA keeps giving oil companies. $.50 per bushel on a 14.8 billion bushel corn crop equals $7.4 billion. $1.00 per bushel equals $14.8 billion. The Administration is responsible for this negative trade, ethanol demand and low corn price situation. They need to compensate farmers.”

McGuire added, “Regarding exports, USDA’s own historical export facts and database tell the story. Congress irresponsibly bought into the ‘export-oriented’ farm policy mantra from big multinational grain trading companies and their industry lobbyists. That shaped the 1985 farm bill and began dismantling supply management tools. Then the 1996 Farm Bill eliminated the remaining farmer-oriented supply management programs.  Large grain buyers (processors, exporters and large livestock feeders) got their way in farm policy. They projected that U.S. grain exports would grow dramatically. They were wrong. Thirty-nine years later, in the 2018-2019 marketing year, USDA projects corn exports at only 2.4 billion bushels, right back to the export level of 1980. U.S. corn exports occasionally exceed 2 billion bushels when foreign droughts bump up demand as is the case. The 39-year U.S. corn export average is only 1.8 billion bushels. Congress needs to recognize these facts.  Exports are very important to help reduce excessive corn inventory. But, exports need strong ethanol demand every year to keep corn ending stocks managed to strengthen corn prices. The current tariff trade war is causing long term damage to U.S. export markets. It facilitates additional foreign crop competition for years. Congressional leaders must pressure Administration officials, including EPA, to cease granting RFS ethanol waivers to big oil companies. Congress needs to get a grip on policy by strengthening corn demand through a stronger ethanol RFS.”



Taiwan Soybean Purchase Heralded by Iowa Farmers
Iowa Soybean Association President-elect Tim Bardole

Today’s announcement by our Taiwanese trading partners to increase purchases of U.S. soybeans is welcomed news. As an Iowa soybean farmer, I can say firsthand that we need some good news. Soybean harvest is underway in Iowa and across the nation. This year is expected to be a record yield. We’re good at growing soybeans. Iowa and U.S. farmers are also committed to ensuring that we’re a reliable supplier and that our soybeans are of the highest quality. Taiwan knows this, evident by their intention to increase imports of U.S. soybeans by 37 percent compared to last year. Agricultural trade is a great uniter. As an industry, we celebrate and recognize the importance of events like this and welcome the opportunity to do business with Taiwan and other key trading allies moving forward.

Positive developments in trade continue today with the announcement of a potential new free trade agreement as it relates to Canada. The Iowa Soybean Association looks forward to hearing more details on this agreement as they become available. Broadening agricultural markets and expanding trade is positive for Iowa’s economy and soybean farmers. 



USDA Announces Commodity Credit Corporation Lending Rates for October 2018

The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation, today, announced interest rates for October 2018. The Commodity Credit Corporation borrowing rate-based charge for October is 2.500 percent, up from 2.375 percent in September.

The interest rate for crop year commodity loans less than one year disbursed during October is 3.500 percent, up from 3.375 percent in September.

Interest rates for Farm Storage Facility Loans approved for October are as follows: 2.750 percent with three-year loan terms, the same as 2.750 in September; 2.750 percent with five-year loan terms, the same as 2.750 percent in September; 2.875 percent with seven-year loan terms, the same as 2.875 percent in September; 2.875 percent with 10-year loan terms, the same as 2.875 percent in September and; 3.000 percent with 12-year loan terms, the same as 3.000 percent in September.



Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.09 million tons (170 million bushels) in August 2018, compared with 5.37 million tons (179 million bushels) in July 2018 and 4.55 million tons (152 million bushels) in August 2017. Crude oil produced was 1.94 billion pounds down 5 percent from July 2018 but up 10 percent from August 2017. Soybean once refined oil production at 1.45 billion pounds during August 2018 increased 1 percent from July 2018 but decreased 4 percent from August 2017.

Canola seeds crushed for crude oil was 170,472 tons in August 2018, compared with 165,007 tons in July 2018 and 151,958 tons in August 2017. Canola crude oil produced was 139 million pounds down 7 percent from July 2018 but up 10 percent from August 2017. Canola once refined oil production at 111 million pounds during August 2018 was down 19 percent from July 2018 and down 19 percent from August 2017. Cottonseed once refined oil production at 45.6 million pounds during August 2018 was up 8 percent from July 2018 but down 9 percent from August 2017.

Edible tallow production was 91.4 million pounds during August 2018, up 20 percent from July 2018 and up 12 percent from August 2017. Inedible tallow production was 333 million pounds during August 2018, up 12 percent from July 2018 and up 6 percent from August 2017. Technical tallow production was 120 million pounds during August 2018, up 55 percent from July 2018 and up 23 percent from August 2017. Choice white grease production at 113 million pounds during August 2018 increased 26 percent from July 2018 and increased 2 percent from August 2017.



Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 535 million bushels in August 2018. Total corn consumption was down slightly from July 2018 but up slightly from August 2017. August 2018 usage included 91.6 percent for alcohol and 8.4 percent for other purposes. Corn consumed for beverage alcohol totaled 3.56 million bushels, up 8 percent from July 2018 and up slightly from August 2017. Corn for fuel alcohol, at 479 million bushels, was down slightly from July 2018 and down slightly from August 2017. Corn consumed in August 2018 for dry milling fuel production and wet milling fuel production was 91.2 percent and 8.8 percent respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 2.16 million tons during August 2018, up 2 percent from July 2018 and up 5 percent from August 2017. Distillers wet grains (DWG) 65 percent or more moisture was 1.31 million tons in August 2018, down 1 percent from July 2018 and down 3 percent from August 2017.

Wet mill corn gluten feed production was 325,547 tons during August 2018, up 1 percent from July 2018 but down 6 percent from August 2017. Wet corn gluten feed 40 to 60 percent moisture was 256,268 tons in August 2018, down 3 percent from July 2018 and down 18 percent from August 2017.



CWT Assists with 613,000 Pounds of Cheese Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted three offers of export assistance from CWT that helped them capture contracts to sell 612,885 pounds (278 metric tons) of Cheddar cheese. The product has been contracted for delivery in Asia, North Africa and Central America for the period from October 2018 through January 2019.

CWT-assisted member cooperative 2018 export sales total 47.560 million pounds of American-type cheeses, 12.962 million pounds of butter (82% milkfat) and 52.056 million pounds of whole milk powder to 35 countries on five continents. These sales are the equivalent of 1.111 billion pounds of milk on a milkfat basis. Totals have been adjusted to reflect bid cancellations.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



NFU Hails Cooperatives and the Empowerment They Bring to Family Farmers, Rural America

National Farmers Union (NFU) today joined the cooperative community in kicking off National Cooperative Month. NFU President Roger Johnson hailed the nation’s many and varied cooperatives, highlighting the political and economic might that they have brought to family farmers, ranchers and rural America for more than a century.

“Since the founding of our organization 116 years ago, Farmers Union members have demonstrated that they not only believe in and belong to cooperatives, but also that the cooperative concept is at the very heart of who we are and how we think as an organization,” said Johnson.

This year’s theme is “Co-ops See the Future,” and it highlights the sustainable and inclusive tomorrow that is envisioned by the more than 40,000 cooperatives in the U.S. Johnson noted that Farmers Union shares this vision, and the organization is working to ensure that family farmers and the general public understand the important democratic decision-making process that is employed by cooperatives.

“Co-ops are not just an effective business model,” said Johnson. “They empower individuals, and they connect those that otherwise would not have significant buying or selling power in a marketplace. Co-ops are more important than ever in rural America, given the fact that agriculture is increasingly highly concentrated on both the supply and demand sides of the equation.”

Farmers Union’s roots in cooperatives go all the way back to the organization’s founding in Point, Texas, in 1902, when farmers began to see an increase in both political strength and visibility through cooperative businesses. “Our organization’s founders responded to sundry business practices that not only placed farmers and ranchers at a disadvantage, but actually pitted us against one another,” said Johnson.

After that realization, Farmers Union members went on to organize cooperatives that focused on storage warehouses, supply and marketing, purchasing, rural electric and even credit unions. Today, they’ve expanded even further, and have even teamed up with public schools to provide local, nutritious food for school lunches in the “Farm to School” program. 

Johnson noted that the NFU Foundation (NFUF) provides cooperative education in all of its programs. In 2012, NFUF published curriculum on cooperatives, “Cooperatives: The Business of Teamwork.” This year, the Foundation published a 6-part blog series on the power of cooperatives, and it will provide free cooperative education to more than 1000 beginning farmers and ranchers during its annual online conference, “Growing for the Future.”

“Cooperatives to this day remain a vital cornerstone of rural American communities, forming the nexus of the rural economy and putting their money and efforts back into their communities,” said Johnson. “As an organization, we are committed to ensure that this smart business and empowerment model continues to help bring increased strength and prosperity to rural America, and we’re delighted that the cooperative spirit is reaching further than ever into new areas and ideas,” he said.

Learn more about NFU’s current involvement in cooperative development and education, as well as other cooperative associations at NFU.org/cooperation.



New Fontanelle Hybrids® Products Offer Combination of Enhanced Agronomics and Disease Tolerance

With harvest 2018 in full swing, Western Corn Belt farmers are turning their focus to 2019 preparations. They’ll have a new option to consider as they think ahead to planting: Fontanelle Hybrids FortiField corn products, featuring enhanced agronomic characteristics plus improved disease protection.

Using superior genetics through enhanced breeding technologies, Fontanelle Hybrids FortiField products have been carefully developed and locally tested to provide high-performing agronomic advantages throughout the growing season from emergence through harvest. This includes early-season emergence and seedling vigor; midseason root and stalk strength and late-season health (staygreen); and harvest intactness. In addition, Fontanelle Hybrids FortiField products defend against local diseases including Gray Leaf Spot, Goss’s Wilt, Northern Corn Leaf Blight and Anthracnose Stalk Rot.

“The Fontanelle Hybrids FortiField package of unique agronomic characteristics and comprehensive protection from common and costly diseases are designed to give Western Corn Belt farmers peace of mind, from emergence through harvest,” says Andy Ackley, corn product manager. “These new products have been hand-selected by your local technical agronomists and are designed to perform in the Western Corn Belt.”

The Fontanelle Hybrids FortiField corn offerings include two products in the 108 relative maturity range. They are 08A988 Brand Blend and 08D988 Brand Blend.

These products are available for purchase for the upcoming 2019 planting season.