Wednesday October 24 Ag News

NPPC Lauds Trade Progress With Philippines

The National Pork Producers welcomed progress by the Trump administration on a number of issues under the bilateral Trade and Investment Framework Agreement (TIFA) with the Philippines. NPPC hopes the progress on these issues moves the United States closer to initiating free trade agreement negotiations with the Philippines, a priority market for U.S. pork producers.

“The Philippines is a large pork-consuming nation, with a fast-growing population and a burgeoning middle class,” said Jim Heimerl, NPPC president and a pork producer from Johnstown, Ohio. “It also has some of the highest food prices of any Southeast Asian nation and would benefit from a free trade agreement with the United States.”

Last year, the United States shipped nearly $100 million of pork to the Philippines. U.S. pork sales to the country would grow significantly through a free trade agreement that removes tariff and non-tariff barriers to trade.

“We thank the Trump administration for the steps it is taking to expand U.S. pork access to many international markets, including the Philippines,” Heimerl added. “Pork is one of the most competitive U.S. export products and sustains more than 500,000 jobs in rural America.”



U.S. Dairy Industry Applauds Work to Deepen Philippine Trade Relations
The U.S. Trade Representative this week announced progress in talks with the Philippines under the bilateral Trade and Investment Framework Agreement (TIFA). U.S. dairy producers and processors appreciate the Administration’s work to preserve and deepen market access ties with a country that purchased $243 million in U.S. dairy products last year.

In a joint statement released about the recent achievements in resolving trade issues under the TIFA, both governments agreed that they should work together to benefit agriculture. This is viewed as a promising development given Southeast Asia’s growing market for dairy products.

U.S. officials noted that the Philippines has been handling geographical indications (GIs) in a fair manner that preserves the use of common names and welcomed their commitment to “discuss ways to ensure that Philippine laws, regulations, and policies do not restrict or prohibit entry of U.S. products in the Philippine market.”

To further that goal, the Philippines confirmed that “it will not provide automatic GI protection, including to terms exchanged as part of a trade agreement.” Tom Vilsack, president and CEO of the U.S. Dairy Export Council, said this assurance is significant because of the European Union’s ongoing campaign to use GIs to block U.S. dairy sales.

“The Philippine economy is strengthening, its population is growing, and more consumers are moving up into the middle class,” explained Vilsack. “In short, there is tremendous potential for greater U.S. dairy sales in the Philippines and this week’s announcement gets us a step closer to realizing this opportunity. USTR’s work to keep those doors open today and pursue ways to crack them open further in the future is certainly appreciated by dairy producers and processors across the country.”

National Milk Producers Federation (NMPF) President and CEO Jim Mulhern said developments are positive for dairy producers facing economic challenges.

“The rural economy is having a rough time, dairy prices are low, and our farmers are struggling,” Mulhern said. “Trade will be key to turning things around. USTR’s work to forge positive pathways with the Philippines is a building block in that process. The next step is to move forward with a free trade agreement to allow our industry to compete head to head with other suppliers in the region.”

U.S. negotiators also secured a commitment from the Philippines to consider petitions for voluntarily lowering tariff rates on certain agricultural products, including cheeses. This is a step in the right direction toward U.S. exporters bridging the competition gap created by trade agreements between the Philippines, Australia and New Zealand.



ISU: Applying Manure in Unfavorable Conditions

Frequent rainfall has delayed harvest across the state, leading to concerns about whether manure application will be completed. The projected favorable forecast the next nine days should provide an opportunity for manure application.

At this point, focus needs to shift from waiting for ideal manure application conditions, to making sure there is sufficient storage capacity to make it through the winter. However, as these weather conditions can increase nutrient transport and loss, it is important to make sure best manure application strategies are followed to minimize negative environmental impacts and ensure producers benefit from the manure’s fertilizer value.

Increased soil moisture increases both the risk of runoff and manure movement to tile lines. Higher soil moistures lead to both slower infiltrations of applied manures and greater potential for leaching. Liquid manure applications will increase soil moisture further; for example, a manure application of 13,500 gallons per acre is equivalent to a half-inch rainstorm.

There are some things producers can do to minimize risk of nutrient loss.
-    Consider reducing manure application rates. This may mean supplementing fertilizers or providing a second manure application in the spring to meet nutrient application goals, but the soil has a better chance of holding all the nutrients applied.
-    Pick and choose your fields. All fields aren’t created equal. Some have more slope, some are closer to streams and rivers, and some are naturally wetter and more poorly drained. Take advantage of knowing the farm and apply in the drier locations.
-    Follow the contour. Wetter soils mean the manure soaks in slower; the manure and those nutrients need to stay where they are put. Following the contour provides less opportunity for flow and decreases mini-micro topography that runoff from the field from rainfall events shortly after manure application.
-    Surface residue. Fields with more residue cover will tend to have less runoff and less erosion than fields where residue has been removed. Take advantage of this by putting manure where residue cover remains.
-    Increase setback distances from rivers, streams, lakes, and sinkholes.
-    Review your manure management plan. Identify fields that have a low phosphorus index and apply to those first. This normally means the field is at a lower risk of nutrient loss.
-    Watch the forecast. The highest risk time for nutrient transport is within the first 48-hours of manure application. Try to avoid applying if larger storms (greater than 0.5 inches) are forecast.

These practices don’t eliminate risk of nutrient loss, but taking these actions can help keep the nutrients in the fields and out of Iowa’s waters.

Finally, wet conditions always lead to concerns and questions about compaction. Check tire inflation pressures, only partially fill tanks, or consider drag line application to reduce compaction risk. Good manure storage management means making sure to have sufficient capacity to make it spring. Keep soil and weather conditions in mind, and focus on actions to protect Iowa’s waters. Safe hauling.



Iowa Cattlemen Speak out on Fake Meat in Washington, DC

Iowa Cattlemen’s Association board member, Bob Noble, and ICA’s Government and Regulatory Affairs Manager, JanLee Rowlett recently gave comments during a two-day public meeting on lab-grown fake meat. The first day of the joint USDA/FDA meeting in Washington, DC focused on regulations related to alternative proteins, while the second day was aimed at discussing labeling of such products.

“We want to ensure that reasonable, science-based standards are the basis for the regulatory system of all meat food products, regardless of how they are produced,” said Noble in his comments. “The Iowa Cattlemen’s Association stands behind the National Cattlemen’s Beef Association’s call for USDA oversight of cell-cultured alternative protein products.”

Noble, a cattle producer from Mitchell County, has a master’s degree in meat science from Oklahoma State University, and experience in the processing sector.

The regulation of “fake meat” has emerged as a priority for the Iowa Cattlemen’s Association over the past few months, as technological advances have decreased the cost to produce lab-grown products, and major meat processing companies such as Tyson and Cargill have invested in the development of these products.

The Iowa Cattlemen’s Association helped bring this issue to the forefront by introducing policy at NCBA related to alternative proteins. The association’s main goals are are two-fold:
    1) protect consumers from misleading and confusing labels
    2) maintain consumer confidence and protect the beef industry from disparaging claims by alternative protein companies such as "clean meat" which imply that beef raised by Iowa farm families is unsafe or dirty.

ICA supports the oversight of these products by the USDA rather than FDA due to FDA’s failure to enforce labeling rules for plant-based products claiming to be milk.

Noble serves as the District 5 director for the Iowa Cattlemen’s Association and is a voting delegate for ICA at NCBA conventions. “Cattle producers in Iowa and across the country take their role in producing safe and nutritious beef for consumers very seriously. From the pasture, to the processor, to the plate, our industry has made investments, and advancements, at every stage of production to ensure the highest level of integrity of the beef we produce,” he said during his comments.

On the second day, Rowlett provided her comments, saying, “Fair and accurate labeling of meat food products, no matter how they are produced, means the same labeling standards across the board. ‘Beef’ and other terms consumers associate with meat products made from livestock raised by farmers and ranchers should be used to describe only those products, not those produced through cell-cultured technology.”

“These objectives can be achieved only under the primary jurisdiction of USDA’s FSIS, which will ensure a sound scientific basis of labeling and approval of these labels before products are offered on the market. We believe the pre-approval of these labels is absolutely critical to preserving the integrity of all meat offered for sale to American families,” she concluded.

Other speakers during the two-day meeting included livestock and meat industry representatives as well as animal rights activists and companies who produce alternative proteins. “ICA is really proud to have a leader like Bob sharing the perspective of Iowa’s cattle producers at this national meeting,” said Rowlett. “There are still a lot of unanswered questions about alternative protein products, but we will continue to make sure that ICA members are represented in discussions surrounding the regulation and labeling of these products.”



NMPF Asks USDA to Bolster Dairy Aid Package

The U.S. Department of Agriculture (USDA) needs to better reflect the dairy-farm incomes lost to tariff retaliation when it calculates its next round of trade mitigation payments, the National Milk Producers Federation said today.

In a letter sent Tuesday to Agriculture Secretary Sonny Perdue, NMPF Chairman and dairy farmer Randy Mooney cited four studies illustrating that milk producers have experienced more than $1 billion in lost income since May, when the retaliatory tariffs were first placed on dairy goods in response to U.S. levies on foreign products. In contrast, the first round of USDA trade mitigation payments, announced in August, allocated only $127 million to dairy farmers.

“We are ever-grateful for your advocacy on agricultural trade, which is crucial to the economic health of our industry,” wrote Mooney, who operates Mooney Dairy in Rogersville, Missouri, with his wife, Jan. “However, our members are greatly concerned about the level of aid that was provided in the initial effort.”

The letter details four analyses, including two independent studies using sophisticated economic modeling, that each show losses to dairy producers far above USDA’s initial payment level.
-    NMPF analyzed the CME dairy futures-based milk prices through the end of 2018, based on the settlement prices in late May, just before retaliatory tariffs were announced, with those same prices after tariffs had been thoroughly incorporated into market expectations.  The expected impact of the retaliation may result in roughly $1.5 billion in lost revenue for producers during the second half of 2018.
-    USDA’s own monthly World Agricultural Supply and Demand Estimates (WASDE) showed a drop in its forecast milk prices for the full 2018 calendar year of $0.70/cwt., after the imposition of the tariffs. The WASDE estimate amounts to a loss in dairy farm income of $1.5 billion for the year.
-    An Informa Agribusiness Consulting study estimated that the tariffs would lower U.S. dairy farm income by $1.5 billion for the full year 2018.
-    The Center for North American Studies at Texas A&M University, estimated an annual loss of $1.17 billion.

“These estimates show that farmer losses from the tariffs will notably exceed $1 billion in 2018,” Mooney wrote. “Significant income losses will continue” if tariffs imposed by Mexico and China – two of the largest dairy export markets for the United States – remain in place.

Perdue has said a second trade mitigation payment to producers may be made this year, after additional calculations of farmer losses.

“We are eager to work with you on a plan that better reflects the struggles dairy producers across the country have faced due to the tariffs,” Mooney wrote. “Thank you for considering the critical implications of these trade challenges for us as dairy farmers and cooperative owners.”



Ethanol Blending Demand at 7-Week High

Domestic ethanol stocks posted the first draw in three weeks as blending demand continued higher during the third week of October, reaching a seven-week high, Energy Information Administration data released Wednesday, Oct. 24, shows.

Total domestic ethanol inventories were drawn down 233,000 barrels (bbl) in the week ended Oct. 19 to 23.897 million bbl, 2.9 million bbl, or about 14%, higher than the corresponding week in 2017.

Plant production increased 13,000 bpd to 1.024 million bpd during the week-ended Oct. 19, 1.4% lower than the corresponding week in 2017. Four-week averaged production was 1.023 million bpd versus 1.009 million bpd during the corresponding four week period in 2017.

Net refiner and blender inputs, a measure for ethanol demand, rose for a fourth straight week, up 7,000 bpd to 940,000 bpd during the week-ended Oct. 19, the highest level since the last week of August and 1.6% above a year ago. For the four weeks ended Oct. 19, blending demand averaged 926,000 bpd, 3,000 bpd below the same period in 2017.



Most Fertilizer Prices Continue Higher, But Anhydrous Increases Stall

After five consecutive weeks of across-the-board, month-over-month increases in retail fertilizer prices, only six of the eight fertilizers tracked by DTN were higher for the third week of October 2018.

Urea recorded the largest month-over-month increase of $21/ton to $405/ton. One year ago, urea prices came in at $340/ton. The second-highest rise in price since last month came from 10-34-0, which grew by $9/ton to $457/ton.

Small increases were seen in UAN32, UAN28, DAP and potash. UAN 32 saw an average price increase of $5/ton to $283/ton from one month ago. UAN 28 and DAP both increased by $4/ton to $243/ton and $498/ton, respectively. Since last month, the average price of potash increased by $3/ton to $365.

The price of anhydrous remained steady at $494/ton since last month, while MAP showed the only price decrease, falling from $520/ton to $518/ton for this update. However, the average anhydrous price is $97 higher than one year ago, while MAP is now $66 higher than last year.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.30/lb.N, UAN28 $0.43/lb.N and UAN32 $0.44/lb.N.



U.S. Trade Policy, Grains Transportation Value Chain Spotlighted At Export Exchange 2018; Buyer-Seller Relationships Forged

The challenges and opportunities surrounding transportation of U.S. feed grains to end-users in countries around the world was the topic of conversation at Export Exchange 2018 Wednesday.

Export Exchange is a biennial educational and trade forum for U.S. feed grains that will host attendees from both the U.S. and various countries organized into 21 USGC trade teams. The teams will meet with U.S. suppliers and get a chance to learn about current supply and demand for U.S. feed products.

Co-sponsored by the U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA), Export Exchange 2018 offers attendees an unparalleled opportunity to meet and build relationships with domestic suppliers of corn, distiller's dried grains with solubles (DDGS), sorghum, barley and other commodities.

“Export Exchange is an opportunity to demonstrate just how amazing the streamlined and efficient U.S. value chain is,” said Jim Stitzlein, USGC chairman. “We want to show potential buyers just how it allows grain grown on thousands of farms to be harvested, collected and commingled at elevators, then transported by barge or rail to terminal elevators, further combined, and then loaded for delivery to foreign destinations. We are absolutely committed to working with our international customers, drawing on our inherent strengths to get them what they want when they need it.”

After welcome remarks by Growth Energy Senior Vice President of Global Markets Craig Willis, attendees received a U.S. trade policy briefing from Dan Pearson, former chairman of the U.S International Trade Commission (ITC) and principal at Pearson International Trade Services.

"There is reason for optimism. Reason will prevail over instinct and economics will win in the end," Pearson told attendees. "U.S. agriculture will continue to be a reliable supplier of ag commodities over the long run to countries around the world. The world needs U.S. agriculture and the U.S. needs the world."

Each speaker emphasized that the U.S. is open for business and ready to work with global partners around the world to meet the growing coarse grains and co-product needs of populations overseas.

“Biofuels are gaining popularity across the globe as more and more countries begin to adopt them as a way to combat emissions and keep fuel prices low for consumers,” Willis said. “The past 12 months have seen the highest amount of ethanol exports in history, and this year’s Export Exchange is the perfect place to tell our story and showcase the benefits that American-made ethanol and its co-products can bring to global marketplaces.”

Florentino Lopez, executive director of the United Sorghum Checkoff Program, also updated attendees on the outlook for U.S. sorghum. The balance of the meeting focused on trade programs and global grain transportation concerns.

“With U.S. DDGS exports shipped to five continents last year, transportation is an essential part of the conversation here at Export Exchange,” said RFA President and CEO Geoff Cooper. “We want to ensure our industry can deliver DDGS and other ethanol co-products to our current and new customers in the international market.”

Mark Slupek, deputy administrator, Office of Trade Programs at the U.S. Department of Agriculture’s Foreign Agricultural Service addressed attendees on the Department’s perspective on trade programs and how they work in a changing trading environment.

"The message I want to bring to you today is American agriculture is open for business, and USDA is all in," said Slupek. "We operate many foreign market development programs and they are about one thing - building relationships. We feel committed to our partnership with the U.S. Grains Council and the U.S. grains industry."

The morning culminated with a panel discussion between three grain transportation experts regarding issues facing the global grain trade and its shipping channels.

The panel included Kelle Horn, vice president, Pacific Rim Shipbrokers, Inc. and Stephen Nothdurft, assistant vice president and Midwest regional manager, Hyundai Merchant Marine. Ken Ericksen, senior vice president, head of client advisory development at Informa Economics acted as moderator.

U.S. Grains Council President and CEO Tom Sleight closed the meeting, thanking attendees for their time and effort to attend and emphasizing the ties between U.S. agriculture and international customers.

“Meetings like Export Exchange make it very apparent why it is essential for us to keep the bonds between suppliers and partner countries," he said. "The connections made here will not only propel our industry this year, but for years to come.”



USDA Announces Update to National Road Map for Integrated Pest Management (IPM)

The U.S. Department of Agriculture (USDA) announced today the first update since 2013 of the National Road Map for Integrated Pest Management (IPM) (PDF, 340 KB).

The update culminates a yearlong review by the Federal Integrated Pest Management (IPM) Coordinating Committee (FIPMCC), a joint effort that is coordinated by the Office of Pest Management Policy in the Office of USDA’s Chief Economist with representatives of all federal agencies with responsibilities in IPM research, implementation, or education programs. These agencies include Environmental Protection Agency (EPA), Department of the Interior (DOI), and Department of Defense (DoD).

Integrated Pest Management (IPM) is a science-based, sustainable decision-making process that uses information on pest biology, environmental data, and technology to manage pest damage in a way that minimizes both economic costs and risks to people, property, and the environment.

The National Road Map for Integrated Pest Management (IPM), first introduced in 2004, is periodically updated to reflect the evolving science, practice, and nature of IPM. The Road Map provides guidance to the IPM community on the adoption of effective, economical, and safe IPM practices, and on the development of new practices where needed. The guidance defines, prioritizes, and articulates pest management challenges across many landscapes, including: agriculture, forests, parks, wildlife refuges, military bases, as well as in residential, and public areas, such as public housing and schools. The Road Map also helps to identify priorities for IPM research, technology, education and implementation through information exchange and coordination among federal and non-federal researchers, educators, technology innovators, and IPM practitioners.



Annual Soil Health Summit event opens to public for first time

As the pursuit of improved soil health as an on-farm business and environmental strategy continues to grow, the Soil Health Partnership  is taking a new step to foster that interest. For the first time, the organization has opened to the public the annual Soil Health Summit, January 15 – 16 in St. Louis, and especially encourages growers and agronomists to attend.

Attendees will benefit from peer-to-peer networking, collaboration, and education on the latest in soil health strategies, including new data and insights from SHP.

The SHP’s long-term data collection effort measures the on-farm economic and environmental impact of practices known to improve soil health and sustainability. Those practices include reducing tillage, growing cover crops and practicing advanced nutrient management. Shefali Mehta, SHP executive director, noted the field team plans to have a more robust data set for 2018.

“This is the first year where we have a statistically significant number of farms, more than 80, with year-over-year data to compare,” Mehta said. “This Summit will mark the first time we can truly share insights on how the fields are changing over time. We are eager to share this with our partners and attendees.”

Registration is open from the Soil Health Summit website. The registration fee for the two-day event is just $100 for farmers and educators. The cost for other attendees is $250. This registration fee includes the event meals, all sessions, and a reception. A few select exhibitors will also have educational booths.

In its 5th year, the 2019 event will take place at the Hyatt Regency—St. Louis at the Arch. Plenty of time for peer-networking will accompany high-energy sessions and enhanced breakouts on the latest soil health strategies. General sessions will feature top environmental groups and food companies on why this effort is key to their businesses and sustainability strategies. The following are examples of the diverse breakout sessions:
-    Game of Drones: Putting Aerial Imagery to Work for You
-    Cereal Killer: Herbicide Considerations for Cover Crop Control
-    The Down & Dirty on Soil Testing
-    From the Hill to the Home: Understanding New Federal Policy and Regulation
-    Are you #SocialMediaSmart? Using Social Media to Take Your Business up a Notch

In addition to all the rich content at the summit, SHP is excited to host it in vibrant downtown St. Louis. The Gateway Arch National Park has recently undergone a 5-year extensive renovation and rehabilitation project, with a fascinating indoor museum.

An initiative of the National Corn Growers Association, the Soil Health Partnership works closely with diverse organizations including commodity groups, industry, foundations, federal agencies, universities and well-known environmental groups toward common goals.



AGTools, Inc. Launches; New Online Tool Designed to Increase Profitability for Farmers and All Stakeholders in the Food Supply Chain

AGTools, Inc. has combined its extensive agriculture industry experience and knowledge to create and launch a brand-new online tool enabling the agriculture industry to improve decision making, reduce waste, and increase revenue. The tool is the first of its kind in the agriculture industry designed to help farmers by providing hard data in real time to food supply chain stakeholders, helping to improve their bottom line.

The agriculture industry is fast-paced and farmers work long days. Any one of a series of variables can cause drastic swings in farm profit. This includes market crop pricing, energy pricing, climate changes, currency swings and much more. AGTools brings change to this vital industry, with an objective of bringing the data in a practical, effective manner directly to the farmer and all members of the food supply chain to allow them to make better, more profitable decisions.

Lack of real-time data impacts the agriculture industry and is part of the cause of over $74 billion dollars of food waste per year in the USA and over $350 billion worldwide from harvest to distribution centers. AGTools provides real-time algorithm data by gathering and mining of over 513 commodities of fruits, vegetables, nuts, herbs, and ornamentals to reduce waste and increase profitability. The new, user friendly online tool helps those in the industry to better determine when to plant, harvest, ship, and buy to increase their ROI.

The AGTools team brings many years of first-hand industry experience to the creation of this new technology. The management team at AGTools consists of 12 highly-qualified individuals from different areas of the world. Each team member has a unique agriculture background bringing diverse skills. That input has helped to further develop and advance AGTools to be a well-rounded platform for anyone working in the industry starting with farmers and all supply chain stakeholders.

AGTools offers over 40 million real-time and historical records. It is powered by weather.com, a division of IBM, and provides information from over 125,000 weather stations across the USA.