Friday November 30 Ag News

Save the Date for the Nebraska On-Farm Research Annual Results Meetings

The Nebraska On-Farm Research Network's Annual Results Updates are scheduled for February 2019 at 5 locations across the state!

Why Should You Attend?
1.     Hear from growers who conducted on-farm research on their own farms in 2018.
2.     Get a complimentary copy of the 2018 Nebraska On-Farm Research Results book.
3.     Network with innovate growers in your area.
4.     Get access to unbiased research on a variety of products and practices.
5.     Learn how you can participate in future on-farm research projects.

Approval has been sought for Certified Crop Adviser CEU credits and is pending approval.

Meeting Locations - Lunch will be served at all locations.
Grand Island — Feb. 18 at the Hall County Extension Office on College Park Campus; check-in begins at 8:30 a.m. and the program is from 9:00 to 4:30 p.m. CST.

Norfolk — Feb. 19 at the Lifelong Learning Center located on the Northeast Community College Campus; check-in begins at 8:30 a.m. with the program running from 9 a.m. to 4:30 p.m. CST

Beatrice — Feb. 20 at Valentino's Restaurant, 701 E. Court St.; check-in begins at 8:30 a.m. and the program is from 9:00 to 4:30 p.m. CST.

North Platte — Feb. 26 at the West Central Research and Extension Center; check-in begins at 8:30 a.m. and the program is from 9:00 to 2 p.m. CST.

Alliance — Feb. 27 at the Knight Museum & Sandhills Center, 908 Yellowstone Ave.; check-in begins at 8:30 a.m. with the program running from 9 a.m. to 12 noon MST.

Registration
There is no cost to attend, but pre-registration is requested for meal planning. To register for any of the sites call (402) 624-8030 or email OnFarm@unl.edu and indicate which site you plan to attend.

For more information visit: http://cropwatch.unl.edu/on-farm-research.  



NeCGA Washington DC Leadership Mission

Each year the Nebraska Corn Growers Association takes a group of members to Washington D.C. to participate in the Washington D.C. Leadership Mission. This mission is a way for members who are looking to get more involved, or are just starting out, to get an in depth look at the work the association does.

In 2019 the mission trip will take place March 11th through the 15th. Attendees can expect to visit with their elected officials, the National Corn Growers Association, the US Grains Council, and other cooperators. The mission trip is also a great chance for attendees to visit with members from across the state and form lifelong friendships.

Applications are due by January 11th to mwrich@necga.org. Spouses who are interested in learning more about the association are also encouraged to attend. Questions? Please call the office at (402) 438-6459, email Morgan Wrich, Director of Grower Services, at mwrich@necga.org, or click here... http://necga.org/2018/11/washington-dc-leadership-mission/.



Farm Finance and Ag Law Clinics this December

Openings are available for one-on-one, confidential farm finance and ag law consultations being conducted across the state each month. An experienced ag law attorney and ag financial counselor will be available to address farm and ranch issues related to financial planning, estate and transition planning, farm loan programs, debtor/creditor law, water rights, and other relevant matters. The clinics offer an opportunity to seek an experienced outside opinion on issues affecting your farm or ranch.

Clinic Sites and Dates
    Grand Island— Thursday, December 6
    Norfolk — Tuesday, December 7
    North Platte— Thursday, December 13
    Lexington — Thursday, December 20

To sign up for a free clinic or to get more information, call Michelle at the Nebraska Farm Hotline at 1-800-464-0258.  The Nebraska Department of Agriculture and Legal Aid of Nebraska sponsor these clinics.



FY 2019 Export Forecast Reduced by $3.0 Billion to $141.5 Billion; Imports Forecast at $127.0 Billion
USDA Economic Research Service

Fiscal year (October/September) 2019 agricultural exports are projected at $141.5 billion, down $1.9 billion from fiscal year 2018 and $3.0 billion from the August 2018 forecast, largely due to decreases in soybeans and cotton. Soybean export volumes are down because of declining Chinese purchases from the United States as a result of trade tensions, and as a record U.S. crop continues to pressure soybean prices lower. Cotton exports are down $1.0 billion from the August forecast to $5.9 billion, primarily due to slowing growth in global demand. Grain and feed exports are forecast up $700 million to $33.8 billion, driven by higher corn and wheat volumes. Livestock, dairy, and poultry exports are down $200 million to $30.1 billion. Declines in poultry and dairy products offset increases in beef and pork products. Horticultural products are unchanged at $35.3 billion. The forecast for exports to China is reduced by $3.0 billion to $9.0 billion, the lowest since fiscal 2007.

U.S. agricultural imports in fiscal year 2019 are forecast at $127.0 billion, up $500 million from the August forecast, primarily due to expected increases in horticultural, sugar, and tropical products. The U.S. agricultural trade surplus is expected to decline by $3.5 billion to $14.5 billion in fiscal 2019.



Farm Sector Profits Expected To Decline in 2018
USDA Economic Research Service

Net farm income, a broad measure of profits, is forecast to decrease $9.1 billion (12.1 percent) from 2017 to $66.3 billion in 2018, after increasing $13.8 billion (22.5 percent) in 2017. Net cash farm income is forecast to decrease $8.5 billion (8.4 percent) to $93.4 billion. In inflation-adjusted 2018 dollars, net farm income is forecast to decline $10.8 billion (14.1 percent) from 2017 after increasing $13.0 billion (20.2 percent) in 2017. If realized, inflation-adjusted net farm income would be 3.3 percent above its level in 2016, which was its lowest level since 2002.

Inflation-adjusted net cash farm income is forecast to decline $10.9 billion (10.5 percent) from 2017 to $93.4 billion, which would be the lowest real-dollar level since 2009. Net cash farm income encompasses cash receipts from farming as well as farm-related income, including government payments, minus cash expenses. Net farm income is a more comprehensive measure that incorporates noncash items, including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings.

Cash receipts for all commodities are forecast to increase $2.5 billion (0.7 percent) to $374.9 billion in 2018 in nominal terms. Total crop receipts are expected to increase $3.0 billion (1.5 percent) from 2017 levels following expected increases in corn and soybean cash receipts. Total animal/animal product receipts are expected to decrease $0.4 billion (0.2 percent) as lower receipts for milk and meat animals are expected to more than offset higher receipts for poultry/eggs. However, when adjusted for inflation, cash receipts for all commodities are forecast to decline $6.1 billion (1.6 percent), with crop cash receipts forecast to decline $1.6 billion (0.8 percent) and livestock cash receipts to decline $4.5 billion (2.5 percent). Direct government farm payments are forecast to increase $2.1 billion (17.9 percent) to $13.6 billion in 2018, with most of the increase due to higher anticipated payments for supplemental and ad hoc assistance and miscellaneous programs, including Market Facilitation Program payments to assist farmers in response to trade disruptions.

Total production expenses (including operator dwelling expenses) are forecast up $14.8 billion (4.2 percent) in nominal terms to $369.1 billion in 2018, led by increases in spending on fuels/oil, interest, feed, and hired labor.

Farm business average net cash farm income is forecast to decline $13,500 (16.2 percent) to $69,800 in 2018. This would be the 4th consecutive decline since 2014 and the lowest average income recorded since the series began in 2010. Every resource region of the country is forecast to see farm business average net cash farm income decline. Most categories of farm businesses are expected to see declines, with dairy farm businesses expected to see the largest.

Farm sector equity is forecast up by $26.4 billion (1.0 percent) to $2.63 trillion in 2018 in nominal terms. Farm assets are forecast to increase by $42.9 billion (1.4 percent) to $3.0 trillion in 2018, reflecting an anticipated 2.1-percent rise in farm sector real estate value. When adjusted for inflation, farm sector equity and assets are forecast to decline $27.0 billion (0.9 percent) and $34.3 billion (1.3 percent), respectively. Farm debt is forecast to increase by $16.4 billion (4.2 percent) to $409.5 billion, led by an expected 5.4-percent rise in real estate debt. The farm sector debt-to-asset ratio is expected to rise from 13.13 percent in 2017 to 13.49 percent in 2018. Working capital is forecast to decline 31 percent from 2017.

Median Income of Farm Operator Households Expected To Remain Unchanged in 2018
Median farm household income is forecast to reach $76,594 in 2018. In nominal terms, that income level represents an increase of 0.8 percent from its 2017 level; in inflation-adjusted terms, it is a 1.5-percent decrease. The total median income of U.S. farm households increased steadily over 2010-14, reaching an estimated $81,637 in 2014 in nominal terms. Median farm household income then fell 6 percent in 2015 and has remained relatively flat since.

Farm households typically receive income from both farm and off-farm sources. Median farm income earned by farm households is estimated at -$800 in 2017 in nominal terms and is forecast to decline to -$1,548 in 2018. In recent years, slightly more than half of farm households have had negative farm income each year. Many of these households rely on off-farm income—and median off-farm income is forecast to increase 2.8 percent from $67,500 in 2017 to $69,418 in 2018. (Because farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.)



Fischer Statement on Signing of USMCA

U.S. Senator Deb Fischer, a member of Senate Agriculture Committee, released the following statement today after President Donald J. Trump signed the U.S.–Mexico–Canada Agreement (USMCA):

“I’m grateful to President Trump for his hard work to negotiate this modernized trade deal. Nebraska agriculture producers and their families depend on access to international markets, especially during these difficult times for the farm economy. I look forward to reviewing the agreement soon.” 

Mexico and Canada are Nebraska’s two largest trading partners.



Smith Statement on Signing of USMCA Trade Agreement
Congressman Adrian Smith (R-NE) released the following statement after representatives of the United States, Mexico, and Canada signed the USMCA trade agreement in Buenos Aires, Argentina.

“Months of negotiations culminated this morning in the signing of USMCA, a three-party trade agreement to replace NAFTA. I commend President Trump and his team for securing an agreement which holds great promise for Nebraska’s agricultural producers through expanded trade with America’s neighbors. I look forward to reviewing the agreement in detail once submitted to Congress for ratification.”

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



Ricketts Praises Signing of United States-Mexico-Canada Agreement

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

“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, NE Farm Bureau President, Regarding Signing of United States, Mexico, Canada Agreement (USMCA)

“Today’s signing of the United States, Mexico, Canada Agreement (USMCA) is a step in the right direction toward normalizing our trading relationship with two of our largest trading partners and closest allies. We thank President Trump as well his administration for all of their hard work in getting this new agreement, which does contain many positive wins for farmers and ranchers, this far. We now call upon Congress to take up and pass this new agreement quickly in order to provide a level of certainty for Nebraska’s farm and ranch families.” 

“However, it is also important to note the cloud of continued U.S. tariffs on imported steel and aluminum continue to hang over this new agreement. As long as these tariffs remain, Nebraska’s farmers, ranchers, small businesses, and consumers won’t be able to fully take advantage of the new opportunities that exist under this new agreement.” 



STATEMENT FROM IOWA CORN GROWERS PRESIDENT CURT METHER

Today’s presidential signing of the U.S.-Mexico-Canada Agreement (USMCA) is an important step toward the final approval and modernization of the most important trade agreement to Iowa and U.S. corn farmers.

 Mexico and Canada are top markets for Iowa corn and value-added corn products. Mexico is the top market for corn, distillers dried grains, pork, and beef. Canada is among the top for ethanol, pork, and beef.  While both countries have traditionally been top buyers of corn in all forms, there is still opportunity for continued market expansion.

 Trade policy is important for Iowa farmers to gain market access, which includes removal of tariffs and other trade barriers. Iowa Corn Growers Association members will continue to work with our Congressional delegation on the final passage of this agreement, working towards our top goal of defending and expanding markets for corn products around the world. 



Statement of Secretary Perdue on Signing of USMCA

U.S. Secretary of Agriculture Sonny Perdue today issued the following statement regarding the signing of the new trade pact, the United States-Mexico-Canada Agreement (USMCA), replacing the outdated North American Free Trade Agreement (NAFTA):

“I have often said that we live in the best neighborhood on Earth – North America – and the signing of a new trade agreement with Mexico and Canada helps cement our highly integrated relationship as nations.  President Trump has fulfilled a promise, which many said couldn’t be done, to renegotiate NAFTA and improve the standing of the entire American economy, including the agriculture sector.

“The new USMCA makes important specific changes that are beneficial to our agricultural producers.  We have secured greater access to the Mexican and Canadian markets and lowered barriers for many of our products.  The deal eliminates Canada’s unfair Class 6 and Class 7 milk pricing schemes, opens 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.

“This is good news for American farmers and we now need Congress to follow suit and enact the necessary implementing legislation.  I commend President Trump and our U.S. Trade Representative, Ambassador Lighthizer, for their perseverance, leadership, and hard work.”



NCGA: USMCA Signing an Important Step Forward

National Corn Growers Association President Lynn Chrisp today released the following statement applauding the important step taken by U.S., Mexican and Canadian officials today in signing the new U.S.-Mexico-Canada Agreement (USMCA).

“U.S. corn farmers are proud of the strong trading relationships NAFTA has enabled us to build with our North American trading partners, exporting more than $3 billion of corn and corn products to Mexico and Canada last year. Today’s signing is an important step toward cementing a modernized relationship with these important partners. NCGA commends leaders from all three nations and looks forward to engaging on next steps as the USMCA moves to Congress for consideration.”



NCBA Welcomes USMCA Signing, Will Work with Congress to Secure Passage

Today President Kevin Kester issued the following statement in response to the signing of the U.S.-Mexico-Canada Agreement (USMCA):

“With the signing of the U.S.-Mexico-Canada Agreement (USMCA), U.S. beef producers are one step closer to knowing that unrestricted, science-based trade will continue in North America. The agreement brings the trading relationship with our neighbors into the 21st century – and clearly rejects the failed beef and cattle trade policies of the past. Open markets have helped U.S. producers flourish and created billion dollar markets for U.S. beef.  We look forward to working with Congress to get USMCA passed into law as quickly as possible.”

Background
Today the leaders of the United States, Mexico, and Canada signed the USMCA on the sidelines of the G-20 meeting in Argentina. The USMCA maintains unrestricted, duty-free trade for beef and cattle in North America. It also maintains science-based trade standards.

All three countries must complete their own domestic processes before the USMCA comes into force. In the U.S., Congress will need to pass legislation to implement the deal. The U.S. International Trade Commission is currently conducting an investigation into the likely impacts of USMCA. Texas rancher and NCBA member Kelley Sullivan participated in the public hearing to explain how the agreement will benefit U.S. producers.  



U.S. Pork Losses from Trade Dispute with Mexico: $1.5 Billion
The National Pork Producers Council (NPPC) today called for an end to a trade dispute that has cost U.S. pork producers an estimated $1.5 billion this year, according to Iowa State University Economist Dermot Hayes.

“We are very pleased with the new trade agreement with Mexico and Canada, one that preserves zero-tariff pork trade in North America for the long term,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “But, it’s imperative that we remove U.S. tariffs on Mexican metal imports so that retaliatory tariffs of 20 percent against U.S. pork are lifted.”

Dr. Hayes estimates that live hog values this year have been reduced by $12 per animal due to retaliatory tariffs imposed by Mexico against U.S. pork in June. The loss estimate of $1.5 billion is based on an expected total harvest of 125 million hogs in 2018. These tariffs, along with China’s retaliatory tariffs, have turned what promised to be a profitable year into a year of losses for export-dependent U.S. pork producers. Dr. Hayes estimates U.S. pork producer losses of $ 1 billion, or $8 per animal, from the ongoing trade dispute with China.

Mexico and China represent approximately 40 percent of total U.S. pork exports. 



USMCA Agreement Important Relief for Agriculture
American Farm Bureau Federation President Zippy Duvall

“Today’s signing of the U.S.-Mexico-Canada Agreement continues the progress American farmers and ranchers have made since the North American Free Trade Agreement took effect in 1994.

“Agricultural exports to Canada and Mexico increased from $8.9 billion to $39 billion under NAFTA. That boost provided important markets for farmers and ranchers whose productivity has only grown since the agreement was signed. USMCA keeps all those gains and adds improvements in poultry, eggs, dairy and wine. In every way, this new agreement is just as good, if not better than, the one that came before. We thank the Office of the U.S. Trade Representative for all the hard work that went into this accord.

“As good as all this news is, farmers and ranchers still face retaliatory tariffs over steel and aluminum disputes with our North American neighbors and other trading partners. We urge the administration to redouble its efforts to come to an agreement on those outstanding issues so we can regain the markets we had not long ago.”



U.S. Grains Council Statement On USMCA Signing
President and CEO Tom Sleight:

"The ceremony Friday to sign the U.S.-Mexico-Canada Agreement (USMCA) is an important next step in the new pact's final approval and the process of modernizing the most important trade agreement to U.S. grain farmers and exporters.

"In the latest marketing year, Mexico and Canada again proved to be top buyers of U.S. feed grains in all forms, and both countries still hold significant potential for market expansion given the right trade policy frameworks and the robust market development we intend to undertake there with our partners.

"We applaud the many members of the Trump Administration, as well as their Mexican and Canadian colleagues, who worked diligently to negotiate this agreement. We see its forward movement as a sign our countries will continue our robust relationship, as business partners and friends."



NAWG and U.S. Wheat Associates Welcome Official Signing of USCMA, Encourage Repeat with Japan

Today, leaders of the United States, Canada and Mexico officially signed the revised North American Free Trade Agreement (NAFTA), now known as the United States-Mexico-Canada Agreement (USMCA). The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) applaud the three countries for working together to finalize USMCA.

This agreement includes important provisions for wheat farmers. Most notably, USMCA retains tariff-free access to imported U.S. wheat for our long-time flour milling customers in Mexico. That is a crucial step toward rebuilding trust in U.S. wheat as a reliable supplier in this important, neighboring market.

In addition, the USMCA makes important progress towards more open commerce for U.S. wheat farmers near the border with Canada. Currently under Canadian law, wheat grown in the United States delivered to Canadian grain elevators is automatically designated as the lowest grade wheat. Canadian wheat delivered to U.S. elevators however may enter the system without penalty. This disincentive for U.S. farmers when they would otherwise see higher cash bids across the border is unfair. The updated USMCA agreement would enable U.S. varieties registered in Canada to be afforded reciprocal treatment. While there are remaining challenges, we applaud the Administration for negotiating this critical provision in the USMCA and taking a big step towards reciprocal trade along the U.S.-Canadian border.

NAWG and USW look forward to Congress moving forward in reviewing the agreement through Trade Promotion Authority (TPA) requirements.

In the meantime, U.S. wheat farmers are excited to see the Administration build on the momentum of USMCA by initiating negotiations with Japan (http://bit.ly/2ORCSC1). That is needed to end the threat of major wheat export losses without a new trade agreement. USW and NAWG are anxious for a quick deal and policies that would provide long-term stability in the critical Japanese market.



USMCA Deal Falls Short of Fair Trade Framework for Family Farmers, NFU Says

Officials from the United States and Mexico today signed the U.S.-Mexico-Canada Agreement (USMCA), the renegotiated trade deal formerly known as the North America Free Trade Agreement (NAFTA). The agreement will not have binding force in the United States until it is signed by Canada and approved by the U.S. Congress.

National Farmers Union (NFU) said that while USMCA makes important improvements over NAFTA, the deal currently does not go far enough to institute a fair trade framework that benefits family farmers and ranchers and restores sovereignty to the U.S. In response to the signing, NFU President Roger Johnson urged Congress to demand the administration make changes to the deal before ratifying it:

“For decades, family farmers and ranchers have taken a backseat to corporate interests in international trade negotiations. If allowed to take effect without changes, USMCA will continue this trend.

“President Trump campaigned against the major flaws in international trade agreements that the original NAFTA created the framework for, and rightly so. It is this framework that has led to our annual $500 billion trade deficit, exported jobs, lowered wages, and lost sovereignty. NAFTA renegotiation is a key opportunity to create a trade framework for our future.

“The reworked agreement makes improvements to eradicate ISDS—the dispute settlement system that gives corporations an unwarranted advantage over citizens—yet the agreement maintains ISDS provisions for some oil and gas companies. And while this is the first U.S. trade pact to include rules on currency manipulation, these rules lack the teeth they need to be effective. As of right now, only the transparency requirements are binding.

“Finally, the USMCA ignores the sovereignty Americans have lost as part of NAFTA, particularly with respect to food labeling. Canada, Mexico, and multinational meatpackers pressured Congress—using NAFTA provisions—to scrap the commonsense Country-of-Origin Labeling for beef and pork that American consumers and producers benefitted from. These labels should be allowed under a new USMCA.

“It is Congress’s constitutional duty to regulate international trade, including implementation of trade agreements that benefit U.S. citizens. NFU urges Congress to ensure the administration negotiates improvements to USMCA to create a fair trade framework that benefits family farmers, ranchers and rural communities.”



Dairy Groups Applaud Final Signing of Modernized NAFTA Pact; Urges Congress to Approve Swiftly

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) commended the Trump Administration today for signing the U.S.-Mexico-Canada Agreement (USMCA), which had been agreed to in principle on Sept. 30.

The USMCA will benefit America's dairy sector by maintaining the overall U.S.-Mexico trading structure of the 24-year-old North American Free Trade Agreement (NAFTA), while incorporating new commitments to strengthen U.S. dairy export prospects throughout the North American region. Thanks to NAFTA, Mexico is currently the largest export destination for U.S. dairy products, accounting for $1.2 billion in sales last year. The United States commands a dominant market share in Mexico, with sales that amount to three quarters of its imported dairy products.

Although the U.S. dairy industry had sought deeper market expansion and stronger disciplines from Canada on dairy, NMPF and USDEC praised U.S. negotiators for their ardent efforts to address Canada’s pervasive trade-distorting practices. The trade deal includes reforms to Canada’s controversial dairy pricing system and some additional market access – key objectives of the U.S. dairy sector.

In addition to Canada-specific dairy provisions, the USCMA broke new ground by establishing a strong sanitary and phytosanitary chapter, as well as numerous provisions aimed at tackling the misuse of geographical indications that erect barriers to U.S. exports of products that rely on common food names.

Industry leaders said the ultimate impact of the agreement, which must be approved by Congress, will depend on how it’s implemented by the three countries. The U.S. dairy industry will engage with both parties in Congress to seek their support for the agreement’s passage while at the same time seeking assurances that Canada will comply with their commitments in a fair and transparent manner.

“The signing of the USMCA gives America’s dairy industry greater confidence as we head into 2019,” said Tom Vilsack, president and CEO of USDEC. “We trust that the administration will aggressively enforce both the letter and the spirit of the agreed upon text. Thus, it is imperative that the United States ensures that Canada implements its commitments in a manner consistent with the hard-fought transparency and market-reforming disciplines secured in this agreement.”

The dairy organizations urged the governments of the three nations to take the next step toward better trade relations by removing currently imposed tariffs on agricultural exports – as well as steel and aluminum – that have been sticking points in relations between the countries.

“We appreciate the Trump Administration for continually raising our issues of concern and fighting for a better agreement with Canada,” said Jim Mulhern, president and CEO of NMPF. “This year has been a challenging one for dairy producers, who are dealing with continuing low prices and the damaging effects of retaliatory tariffs that have already cost them about $1.5 billion. With today’s signing, we encourage the administration to take a fresh look at other tariffs that are hampering North American trade, including the steel and aluminum tariffs still imposed on Mexico, and to continue making progress in striking new free trade agreements and resolving ongoing trade conflicts.”



EPA Finalizes RFS Volumes for 2019 and Biomass Based Diesel Volumes for 2020

Today, the U.S. Environmental Protection Agency (EPA) finalized a rule that establishes the required renewable fuel volumes under the Renewable Fuel Standard (RFS) program for 2019, and biomass-based diesel for 2020.

“Issuing the annual renewable volume obligations rule on time is extremely important to all stakeholders impacted by the Renewable Fuel Standard program,” said EPA Acting Administrator Andrew Wheeler. “Unlike the previous administration, the Trump Administration has consistently met the deadline on time and fulfilled our commitment to provide stability to the program and greater certainty to farming and refining communities across the country.”

The key elements of today’s action are as follows:
-    “Conventional” renewable fuel volumes, primarily met by corn ethanol, will be maintained at the implied 15-billion gallon target set by Congress for 2019.
-    Advanced biofuel volumes for 2019 will increase by 630 million gallons over the 2018 standard.
-    Cellulosic biofuel volumes for 2019 will increase by almost 130 million gallons over the 2018 standard.
-    Biomass-based diesel volumes for 2020 will increase by 330 million gallons over the standard for 2019. 

The Clean Air Act requires EPA to set annual RFS volumes of biofuels that must be used for transportation fuel for four categories of biofuels: total, advanced, cellulosic, and biomass-based diesel. EPA is using the tools provided by Congress to adjust the standards below the statutory targets based on current market realities. EPA implements the RFS program in consultation with the U.S. Department of Agriculture and the U.S. Department of Energy.



Ricketts Applauds EPA’s 2019 RFS Blending Levels

Today, Governor Pete Ricketts issued the following statement after the U.S. Environmental Protection Agency’s (EPA’s) release of the final rule setting the 2019 renewable fuel blending levels under the federal Renewable Fuel Standard (RFS):

“I commend Acting Administrator Andrew Wheeler and the U.S. EPA for the agency’s timely release of the final 2019 biofuel blending levels under the RFS,” said Governor Ricketts.  “The RFS continues to be a crucial driver of biofuel investment and demand in Nebraska—the nation’s second largest ethanol producer.  Biofuels create significant value-added agriculture market opportunities and benefits for our farmers, producers, and rural communities.  The increase in the cellulosic and advanced volumes requirements for 2019 sends an important market signal that will help Nebraska producers meet the original goals of the RFS, so that increasing volumes of those fuels—in addition to conventional ethanol—will become a part of the nation’s fuel supply.  I am encouraged by the robust 2019 blending levels and look forward to working with the agency to ensure that small refinery waivers do not inadvertently reduce the volumes.”



EPA Fails to Account for Future Refinery Waivers in Final 2019 RVO Rule

The National Corn Growers Association today said the EPA’s final 2019 Renewable Volume Obligation (RVO) rule under the Renewable Fuel Standard (RFS) moves renewable fuels and energy security forward in 2019, but the growth will only be realized if EPA does not grant refiners further RFS exemptions.

“We are pleased the Environmental Protection Agency (EPA) maintained the implied conventional ethanol volume of 15 billion gallons and increased the total 2019 renewable fuel volume as intended by the RFS. However, EPA granted refineries 2.25 billion gallons in RFS waivers over the past year but did nothing to account for those lost volumes. If EPA continues to grant large amounts of waivers in this manner, the volumes set in this final rule cannot be met,” said NCGA President Lynn Chrisp.

In comments on the rule, NCGA and its grower members urged EPA to take steps to maintain the integrity of the RFS, including projecting 2019 waivers and accounting for those gallons to keep the RFS volumes whole. By failing to account for waivers in this final rule, EPA ensures that any 2019 exemptions will reduce the volumes the agency sets today.

“Ethanol has been and continues to be a strong market for U.S. corn farmers, especially during these tough times in the farm economy. When the EPA continues to grant waivers and does not account for those volumes in this rule, domestic demand for our crop is lost, impacting farmers’ livelihood and the economy of rural America,” Chrisp said.

NCGA will continue to work with EPA to ensure the full energy and environmental benefits of the RFS are achieved. As EPA implements this volume rule, as well as considers pending petitions for RFS exemptions, NCGA urges the agency to prevent further demand destruction and support a strong RFS that will benefit America’s farmers and rural communities, provide cleaner air and boost our nation’s energy security.



Iowa Corn Farmers Search for Certainty in 2019 RFS Numbers

The U.S. Environmental Protection Agency (EPA) announced today the final Renewable Volume Obligations (RVO) for the 2019 conventional biofuels requirement at 15 billion gallons under the Renewable Fuel Standard (RFS).

“While we’re pleased to see the EPA finalize numbers at the statutory target for corn-based ethanol, Iowa’s corn farmers want the EPA to stop granting unnecessary waivers to obligated parties and not to include those waivers in its formula for determining annual volumes as required under the RFS,” stated Iowa Corn Growers Association President Curt Mether. “This intentional omission effectively cuts ethanol demand and works against the goals of the RFS program to the detriment of motorists, our environment, and Iowa’s corn farmers.”

The RFS is a federal law that requires domestic, renewable, cleaner-burning ethanol to be blended into the nation’s fuel supply. Congress adopted the RFS in 2005 and expanded it in 2007. Renewable Volume Obligations (RVO) are set annually by EPA to determine the amount of renewable fuel blended into our fuel system each year.

“As corn farmers, we want to ensure the RFS continues to provide affordable fueling options for consumers, advancing America forward in its goals to be a leader in clean, renewable energy, and we have the ability to do that in America’s heartland,” said Mether, a farmer from Logan, Iowa. “Yet, while the farm economy is truly struggling, the EPA continues to hand out RFS waivers to oil companies making billions in profits in the name of economic hardship. If the EPA would simply follow the law and implement the RFS as Congress intended, farmers, consumers and our environment would all benefit.”

The RFS has been one of America’s most successful energy policies. It has spurred investment in rural communities and created high-tech jobs. It has given consumers more choices at the fuel pump. It has reduced our dependency on foreign oil. And it moves America forward as a leader in clean energy with ethanol reducing greenhouse gas emissions by 43 percent compared to gasoline.

“Iowa’s corn farmers look forward to working with our Congressional leaders, the Trump Administration, and the EPA to return certainty to the RFS program and ensure it keeps America moving forward,” added Mether.



EPA Announces Biodiesel and Advanced Biofuels Volumes

The U.S. Environmental Protection Agency (EPA) announced today that the biomass-based diesel and advanced biofuels volumes will be increased above previous year levels, which is good news for the soybean industry. The increase, however, is mitigated by the absence of reallocation of the significant gallons that were waived under exemptions issued previously by EPA to refineries.

The final rule sets the 2020 requirement for biomass-based biodiesel (BBD) volumes at 2.43 billion gallons, a 330-million-gallon increase over the 2018 and 2019 levels. Total advanced biofuel volumes, which are largely filled by biodiesel, are increased to 4.92 billion gallons.

American Soybean Association (ASA) President John Heisdorffer, a soybean producer from Keota, Iowa, acknowledged the progress, saying, “We welcome this increase, as it helps a growing market for soybean oil. We are glad to see EPA acknowledge that biodiesel can play a larger role in our nation’s fuel supply.”

While ASA appreciates the increased biomass-based diesel volumes for 2020, Heisdorffer reiterated the ability and capacity for additional growth. “As ASA communicated to EPA during the rulemaking process, soybean farmers and our biodiesel industry partners can meet these targets, and we have the production capacity and feedstock to reasonably achieve even further growth.”

ASA and its biodiesel industry partners also remain concerned that EPA has not reallocated the previous year volumes that have been waived through exemptions granted to refineries by EPA. The agency’s data shows that the retroactive small refinery exemptions reduced demand for biodiesel by more than 300 million gallons in 2018.

“The biodiesel industry supports agriculture by creating jobs, diversifying fuel sources, and reducing America’s dependence on foreign oil. EPA is moving in a better direction, but we urge the Administration to address the waived volumes and support the full potential of U.S. soybean farmers and biodiesel producers.”



Growth Energy on 2019 Renewable Volume Obligation Targets

Today, the Environmental Protection Agency's (EPA) released the renewable volume obligation (RVO) targets for 2019 under the Renewable Fuel Standard (RFS). Growth Energy CEO Emily Skor released the following statement, underscoring that while the numbers are a positive step forward, the billions of lost gallons due to excessive small refinery exemptions need to be accounted for:

"We are pleased to see the 2019 RVO numbers released on time and that they hold strong promise, with a 15 billion gallon commitment to starch ethanol and 418 million gallons of cellulosic biofuels," said Skor. "But the latest EPA rule is also a missed opportunity to correctly account for billions of gallons of ethanol lost to refinery exemptions. Until these are addressed properly, we’re still taking two steps back for every step forward."

Skor continued, "The current Acting EPA Administrator, Andrew Wheeler, has a valuable opportunity to chart a new course for biofuels and rural America. To reverse the damage done by his predecessor, the EPA must follow the law and reallocate lost gallons, ensuring the ethanol targets set by Congress are actually met. This would plug the leak in America's biofuels targets and give farmers the boost they need to keep the rural economy moving."



RFA Urges EPA 'to Faithfully and Strictly Enforce' Final 2019 Conventional Biofuel Requirement Without Erosion from Small Refiner Waivers

The Environmental Protection Agency (EPA) released today its final Renewable Fuel Standard (RFS) renewable volume obligations (RVOs) for 2019. The agency finalized a total renewable fuel volume of 19.92 billion gallons (BG), of which 4.92 BG is advanced biofuel, including 418 million gallons (MG) of cellulosic biofuel. That leaves a 15 BG requirement for conventional renewable fuels like corn ethanol, consistent with the levels envisioned by Congress in the 2007 Energy Independence and Security Act. Renewable Fuels Association President and CEO Geoff Cooper had the following statement:

“While we are pleased that EPA finalized the statutory 15-billion-gallon requirement for conventional renewable fuels and modest increases to the cellulosic and advanced biofuel categories, we note that EPA did not prospectively account for any small refiner exemptions that it expects to issue in 2019. Hopefully, that means EPA is not intending to issue any small refiner waivers at all in 2019 because it knows there is no rationale or basis for doing so.

“We urge Acting Administrator Andrew Wheeler to faithfully and strictly enforce the 15-billion-gallon conventional renewable fuel requirement in 2019, rather than allowing the standard to be eroded through the use of clandestine small refiner waivers as former Administrator Pruitt did. Mr. Pruitt issued nearly 50 refinery waivers from 2016 and 2017 RFS requirements, including bailouts to companies like Chevron and Andeavor that recorded billions of dollars in net profits in those years. As a direct result of the exemptions, America’s ethanol producers and farm families have experienced demand destruction and are now facing the most challenging economics in years. In examining small refiner exemption petitions for 2018, 2019, and beyond, we implore Acting Administrator Wheeler to exercise the restraint and thoughtfulness that clearly eluded his predecessor.”



Final RFS Rule Provides Only Minimal Growth for Biodiesel, NBB Says

The National Biodiesel Board (NBB) today criticized the U.S. Environmental Protection Agency’s (EPA) final Renewable Fuel Standards for 2019 and biomass-based diesel volume for 2020. EPA sets the advanced biofuel and biomass-based diesel volumes lower than what the agency acknowledges will be produced. Moreover, the rule leaves open a backdoor to retroactively reduce required volumes through hardship exemptions.

EPA made very few changes from its June proposal, setting the 2020 biomass-based diesel volume at 2.43 billion gallons and the 2019 advanced biofuel renewable volume obligation (RVO) at 4.92 billion gallons. The biomass-based diesel RVO for 2019 was set at 2.1 billion gallons in last year’s rule. EPA used its cellulosic waiver authority to make the maximum possible reductions to the advanced biofuel and overall renewable fuel categories.

NBB CEO Donnell Rehagen stated, “EPA recognizes that the biodiesel and renewable diesel industry is producing fuel well above the annual volumes. The industry regularly fills 90 percent of the annual advanced biofuel requirement. Nevertheless, the agency continues to use its maximum waiver authority to set advanced biofuel requirements below attainable levels. The method is inconsistent with the RFS program’s purpose, which is to drive growth in production and use of advanced biofuels such as biodiesel.”

In the final rule, EPA states that it has not received small refinery exemption petitions for 2019 and therefore estimates zero gallons of exempted fuel in its RVO formula. The agency has estimated zero gallons every year since 2015, even though it retroactively exempted more than 24.5 billion gallons of fuel between 2015 and 2017. The agency’s own data shows that the retroactive small refinery exemptions reduced demand for biodiesel by more than 300 million gallons in 2018.

Kurt Kovarik, NBB Vice President of Federal Affairs, added, “EPA’s RFS rule fails to address the uncertainty associated with the unprecedented flood of small refiner hardship exemptions. Moreover, the agency still has not addressed the Court order in the ACE case, which remanded the agency’s improper waiver of the 2016 volumes. The rule that EPA has finalized for 2019 and 2020 is meaningless without solutions to these issues.”



NFU Deeply Disappointed in EPA Decision to Ignore Waivers, Intent of Law in New RFS Obligations

The Trump Administration today finalized 2019 renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS), setting the amount of renewable fuels that need to be blended in the transportation fuel supply at 19.92 billion gallons. The rule maintains the current 15-million-gallon target for corn ethanol and increases cellulosic and advanced biofuel requirements by 130 million gallons and 630 million gallons, respectively.

The 2019 mandate tracked the U.S. Environmental Protection Agency's (EPA) July proposal, which ignored the billions of gallons of lost biofuel demand that resulted from EPA handing out hardship waivers to oil refiners. National Farmers Union (NFU), a staunch proponent of biofuels and higher blends of ethanol, was deeply disappointed by the news. NFU President Roger Johnson released the following statement in response to the rule:

"President Trump's numerous assurances to American family farmers to support the biofuels industry and increase demand for farm products continue to fall short at the hands of EPA.

"Today, EPA set biofuels requirements that completely ignore the 2.25 billion gallons of lost demand for U.S. farm products that resulted from their own handouts to oil refiners. The decision to exempt refiners from complying with the RFS, coupled with today's decision not to make up for the lost demand, leaves farmers at a significant net loss under the current administration.

"This rule is not keeping with Congress' intent with the RFS, which is to drive investment in American grown biofuels. In addition to ignoring lost demand for ethanol, the EPA has provided far too low obligations for advanced biofuels. These businesses need to believe they have the opportunity to create a profitable company in order for them to expand production and utilize more American grown fuels.

"So long as EPA continues to ignore its own mishandling of the RFS waivers, it will continue to undermine the will of Congress, directly contradict President Trump's promises, and destroy American family farmers' ability to expand demand for their products."



ACE statement on final RFS volumes for 2019

American Coalition for Ethanol (ACE) CEO Brian Jennings issued the statement below in response to the Environmental Protection Agency’s (EPA) final Renewable Volume Obligations (RVOs) for the 2019 Renewable Fuel Standard (RFS).

The Agency set a total renewable fuel blending obligation of 19.92 billion gallons next year of which 4.92 billion gallons shall be advanced biofuel, including 418 million gallons of cellulosic biofuel, resulting in 15 billion gallons of conventional biofuel such as corn ethanol.

“On paper, EPA appears to be resisting refiner demands to reduce conventional biofuel blending in 2019 below the statutory 15-billion-gallon level. However, in reality, as long as EPA fails to reallocate the over 2 billion gallons worth of blending obligations waived for ‘Small Refineries,’ renewable fuel demand will remain flat causing farmers and rural biofuel producers to continue suffering the consequences.

“While we are fighting this injustice with a challenge of three specific Small Refinery Exemptions (SREs) in the U.S. Court of Appeals for the 10th Circuit and a petition asking EPA to account for the lost volumes resulting from retroactive SREs, Acting EPA Administrator Andrew Wheeler should be fixing this problem.

“Economic hardship is real, but not for oil refiners. The truth is farmers and ethanol producers are struggling to make ends meet because of depressed prices caused by man-made limits or waivers on demand.

“Assuming the President formally nominates Acting Administrator Wheeler to lead EPA, we call on U.S. Senators to insist he provides them with tangible evidence EPA will reallocate the blending obligations waived for Small Refiners before voting to confirm him.”



GIPSA Agency Elimination a Blow to Competitive Markets, NFU Says

The U.S. Department of Agriculture (USDA) announced that it will be eliminating the Grain Inspection, Packers and Stockyards Administration (GIPSA) as a standalone agency and consolidate its functions into the work of the Agricultural Marketing Service.

National Farmers Union (NFU) President Roger Johnson issued the following statement in response to the announcement:

“At a time when just a handful of companies control all of the markets that supply and buy from family farmers and ranchers, the elimination GIPSA is a big step in the wrong direction. The agency’s statutory duty is to ensure fair and competitive markets for family farmers. This decision comes on top of USDA’s decision to withdraw the Farmer Fair Practices Rules, which would have given American family farmers the most basic of protections against abusive and undue practices levied against them by companies that hold substantial market power. Farmers Union strongly urges USDA to reconsider both of these decisions that undermine competition and place family farmers and ranchers at a significant disadvantage in the marketplace.”



Sanderson Changes Course on Chicken Antibiotics

One of the biggest defenders of antibiotic use in farming is changing its tune--somewhat. Sanderson Farms, one of the top US chicken processors, says by March 1, 2019 antibiotics used in human medicine will no longer be used to prevent disease among the company's chickens.

Sanderson for years has resisted as competing meatmakers, like Pilgrim's Pride and Tyson Foods, have scaled back antibiotics use, responding to criticism that widespread antibiotic use in livestock and poultry contribute to development of antibiotic-resistant bacteria. Sanderson questioned the link and still does, but says it can use other antibiotics to prevent disease.

Sanderson still intends to use medically important antibiotics, like gentamicin and virginiamycin, to treat and control diseases when they're found in poultry barns.