Monday October 7 Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending October 6, 2019, there were 3.2 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 1 percent very short, 7 short, 78 adequate, and 14 surplus. Subsoil moisture supplies rated 1 percent very short, 6 short, 83 adequate, and 10 surplus.

Field Crops Report:
Corn condition rated 2 percent very poor, 5 poor, 20 fair, 56 good, and 17 excellent. Corn mature was 74 percent, behind 91 last year and 85 for the five-year average. Harvested was 12 percent, behind 22 last year and 17 average.

Soybean condition rated 1 percent very poor, 4 poor, 21 fair, 62 good, and 12 excellent. Soybeans dropping leaves was 86 percent, behind 95 last year and 93 average. Harvested was 14 percent, well behind 35 last year, and behind 30 average.

Winter wheat planted was 88 percent, near 85 both last year and average. Emerged was 41 percent, behind 56 last year and 60 average.

Sorghum condition rated 1 percent very poor, 2 poor, 16 fair, 66 good, and 15 excellent. Sorghum mature was 75 percent, behind 88 last year and 82 average. Harvested was 4 percent, behind 22 last year and 17 average.

Dry edible beans harvested was 80 percent.

Pasture and Range Report:
Pasture and range conditions rated 1 percent very poor, 3 poor, 15 fair, 63 good, and 18 excellent.



IOWA CROP PROGRESS & CONDITION REPORT

 Excessive rainfall throughout Iowa limited farmers to only 1.6 days suitable for fieldwork statewide during the week ending October 6, 2019, according to the USDA, National Agricultural Statistics Service. Very little harvesting took place this past week as farmers wait for field conditions to improve with drier weather.

Topsoil moisture condition was rated 0 percent very short, 2 percent short, 63 percent adequate and 35 percent surplus. Subsoil moisture condition was rated 0 percent very short, 3 percent short, 71 percent adequate and 26 percent surplus.

Ninety-four percent of the corn crop has reached the dented stage or beyond, nearly 3 weeks behind last year and 16 days behind the 5-year average. Fifty-two percent of the crop reached maturity, 3 weeks behind last year and over two weeks behind average. Three percent of corn has been harvested for grain, 2 weeks behind average. Corn condition rated 65 percent good to excellent.

Ninety-two percent of the soybean crop has begun coloring or beyond, 2 weeks behind last year and 10 days behind average. Sixty-eight percent of the crop has begun dropping leaves, 15 days behind last year and 10 days behind average. Five percent of soybeans have been harvested, 12 days behind average. Soybean condition rated 64 percent good to excellent.

The third cutting of alfalfa hay reached 90 percent complete, 18 days behind average.

Pasture condition improved slightly from the previous week to 47 percent good to excellent. Feedlots remain muddy.



Corn 58% Mature, 15% Harvested; Soybeans 72% Dropping Leaves, 14% Harvested

The gap between the current percentage of U.S. corn and soybeans that has reached maturity and the five-year average narrowed slightly last week, but harvest progress for both crops slipped further behind the average pace, according to USDA NASS' latest Crop Progress report released Monday.

As of Sunday, 58% of corn was estimated as mature, 27 percentage points behind the five-year average of 85%. That was slightly closer to the average pace than last week, when corn mature was running 30 percentage points behind average.

Nationwide, corn harvest progressed another 4 percentage points to reach 15% as of Sunday, 12 percentage points behind the five-year average of 27%. That was further behind average than last week, when harvest was 8 percentage points behind average.

The condition of corn still in fields was estimated at 56% good to excellent, down 1 percentage point from the previous week, and still the lowest good-to-excellent rating for the crop at this time of year since 2013. The poor-to-very-poor category moved up another 1 percentage point to 15%.

Soybeans dropping leaves reached 72% as of Sunday, 15 percentage points behind the five-year average of 87% -- an improvement from last week when the percent of the crop dropping leaves was running 21 percentage points behind average.

Soybean harvest moved ahead 7 percentage points last week to reach 14%, 20 percentage points behind the five-year average of 34%. That was further behind average than in last Monday's report, when soybean harvest was running 13 percentage points behind the average pace.

Soybean condition was rated 53% good to excellent, down 2 percentage points from 55% the previous week. As with corn, that remains the lowest good-to-excellent rating in six years.

Winter wheat planting progress, which had been slightly ahead of average in last Monday's report, stood at 52% as of Sunday, falling slightly behind the five-year average of 53%. Winter wheat emerged was estimated at 26%, equal to the five-year average.

Spring wheat harvest stalled last week, moving ahead only 1 percentage point to reach 91% as of Sunday, 8 percentage points behind the five-year average of 99%.

Sorghum mature was estimated at 65%, behind the average of 73%. Sorghum harvested reached 33%, behind the five-year average of 40%.

Cotton bolls opening was estimated at 83%, ahead of the average of 75%. Cotton harvested was estimated at 25%, also ahead of the five-year average of 20%. Rice harvested was 76%, behind the average of 80%.



Nebraska Corn encourages safety this harvest season

As combines pop up in fields across the Midwest, the Nebraska Corn Board and Nebraska Corn Growers Association encourage farmers, as well as local residents and visitors, to take a second for safety in rural areas this harvest season.

According to the Centers for Disease Control and Prevention, the agricultural sector is one of the most dangerous industries in America. Over 2 million workers are employed full-time in production agriculture, which does not account for part-time help or family members who also live and work on farms. In 2016, there were 417 reported fatalities of agricultural workers, which equates to 21.4 deaths per 100,000 workers. While harvest season is an opportune time to be mindful of safety precautions, safety should be implemented year-round in the agricultural industry.

“There are lot of moving parts in agriculture, and people need to be responsible,” said David Bruntz, chairman of the Nebraska Corn Board and farmer from Friend. “A lot of accidents can be prevented by just allowing a little extra time and care. We like to tell people to ‘take a second for safety.’ It’s a great reminder for all of us not to get in a hurry and be mindful of our surroundings.”

With factors like fluctuating weather, field conditions and machinery availability, farmers typically have a narrow window to complete their harvest work. Therefore, it’s important farmers take care of themselves to ensure a safe and productive season.

“Farmers need to remember to look out for their own well-being during harvest,” said Dan Nerud, president of the Nebraska Corn Growers Association and farmer from Dorchester. “So often, farmers want to move fast in order to take advantage of good weather, but a tired farmer puts him or herself in danger. It’s important for farmers to get enough rest and take short breaks, when needed. A well-rested farmer is a safe and alert farmer.”

Farmers are not the only people who should be cautious during the harvest season. Anyone who may be visiting or traveling through rural areas should be mindful of increased farm traffic on roads and highways. Harvest equipment should be visible with front and rear warning lights, as well as slow moving vehicle emblems to notify motorists of approaching machinery. In rural areas, parents of small children should also develop safety rules to prevent youth from playing on or near harvest equipment.

Additional tips for farmers, farm workers and rural residents to consider while on the farm this fall (adapted from the National Corn Growers Association):

Equipment Safety
Be careful when approaching harvest equipment. Approach from the front and gain eye contact with the operator before approaching.
Ensure the harvesting equipment is fully stopped and disengaged before climbing onto a vehicle.
Do not place yourself near any unguarded or otherwise running machinery.
Avoid pinch points between equipment – such as tractors with grain wagons. Visibility can be limited and serious injury can occur.

Entanglement Hazard
Entanglement hazards can happen very quickly.
Do not ever try to unplug any equipment without disengaging power and removing energy from the equipment.
Never pull or try to remove plugged plants from an operating machine.
Always keep shields in place to avoid snags and entanglement when working around equipment.

Fall Hazard
Be careful climbing on and off equipment.
Be alert and extremely careful when working in wet or slippery conditions.
Keep all walkways and platforms open and free of tools, dust, debris or other obstacles. Clean all walkways and platforms before use.
Wear clothing that is well fitting and not baggy or loose. Also wear proper non-slip, closed toe shoes.
Use grab bars when mounting or dismounting machinery. Face machinery when dismounting and never jump from equipment.
Never dismount from a moving vehicle.

Fire Prevention
Carry a fire extinguisher with you in your vehicle (A-B-C, 5 or 10 pound).
Remove dust and buildup from equipment. Check bearings regularly to prevent overheating and chance of fire.

Grain Wagon Safety
Be careful to monitor grain wagon weight to never exceed maximum weight limits. As weight increases, grain wagons can be more difficult to control.
Load grain wagons evenly to distribute weight to prevent weaving or instability across the grain wagon.
Inspect grain wagon tires and replace any worn or cracked tires.

Grain Bin Safety
If entering a bin, wear a harness attached to a secure rope.
Never work alone.
Never allow children to get too close or inside the bin.
Wear a dust filter or respirator when working in bins.
Stay out of bins when equipment is running.

“This may be a unique year where harvest occurs over many weeks,” said Bruntz. “All farmers are excited to see the fruits of their labor, but we all need to be safe in the process.”



Nebraskans Celebrate Pork Month

This year Celebrate National Pork Month in October by enjoying delicious pork for your family meals. Get creative with new pork recipes, fix old favorites and try substituting pork for other proteins in your meal plans.  You can enjoy the pork on your fork, knowing it was raised by a farmer that cares about people, pigs and the planet.

“If you eat, you have a connection to a farmer,” said Tim Chancellor, pork producer and President of the Nebraska Pork Producers. “October Pork Month is a time to reestablish that producer-to-consumer relationship. Our mission is to produce safe, nutritious food in a responsible manner, and we need to share how we do that with consumers.  This October cook a ham, slice a marinated loin, make a pork roast, fry some bacon or create a pork surprise for the family and enjoy while talking about everyone involved in producing your meal.”

The six We Care ethical principles guide the U.S. pork industry and demonstrate our commitment to produce a safe, high-quality pork supply. Producers are committed to:
 • Producing safe food • Ensuring practices to protect public health   
 • Protecting and promoting animal well-being
 • Safeguarding natural resources in all industry practices
 • Providing a work environment that is safe and consistent for our people
 • Contributing to a better quality of life in their communities
The principles are summed up in the Pork Checkoff’s purpose to build trust by doing what is right for people, pigs and planet. Nebraska’s pork producers raise 3.7 million pigs each year making it one of the top pork producing states in the Country.

 “We know that today’s consumers are putting more pork on their fork,” Chancellor said. “They have the trust in our product as a flavorful healthy protein choice that creates a wonderful exciting eating experience.”



Effects of a Freeze on Forages
Bruce Anderson, NE Extension Forage Specialist

Sorghum-related plants, like cane, sudangrass, shattercane, and milo can be highly toxic for a few days after frost.

If you haven’t experienced a freeze yet this fall, you soon will. And remember, a freeze can cause hazards for using some forages.

When plants freeze, changes occur in their metabolism and composition that can poison livestock. But you can prevent problems.

Sorghum-related plants, like cane, sudangrass, shattercane, and milo can be highly toxic for a few days after frost. Freezing breaks plant cell membranes. This breakage allows the chemicals that form prussic acid, which is also called cyanide, to mix together and release this poisonous compound rapidly. Livestock eating recently frozen sorghums can get a sudden, high dose of prussic acid and potentially die. Fortunately, prussic acid soon turns into a gas and disappears into the air. So wait 3 to 5 days after a freeze before grazing sorghums; the chance of poisoning then becomes much lower.

Freezing also slows down metabolism in all plants. This stress sometimes permits nitrates to accumulate in plants that are still growing, especially grasses like oats, millet, and sudangrass. This build-up usually isn't hazardous to grazing animals, but green chop or hay cut right after a freeze can be more dangerous.

Alfalfa reacts two ways to a hard freeze, down close to twenty degrees, cold enough to cause plants to wilt. Nitrate levels can increase, but rarely to hazardous levels. Freezing also makes alfalfa more likely to cause bloat for a few days after the frost. Then, several days later, after plants begin to wilt or grow again, alfalfa becomes less likely to cause bloat. So waiting to graze alfalfa until well after a hard freeze is a good, safer management practice.

Frost causes important changes in forages so manage them carefully for safe feed.



Sioux City FFA Agriculture Dinner - With IA Ag Sec

The first-ever Sioux City FFA chapter has been formed and officers elected. Now your support is needed to help send the new FFA officers to the National FFA Convention at the end of October. You're invited for a dinner and conversation with Iowa Secretary of Agriculture, Mike Naig.

Date and Time
Wed, October 16, 2019
5:00 PM – 8:00 PM

Location
Country Celebrations Event Center
5606 Hamilton Boulevard
Sioux City, IA 51108

Tickets are $40 per individual tickets, or $400 to sponsor a table.  Proceeds support the trip to FFA Nationals and the upstart costs associated with building a new FFA chapter.

Please purchase tickets by Friday, October 11th here... https://www.eventbrite.com/e/sioux-city-ffa-agriculture-dinner-with-ia-secretary-of-agriculture-mike-naig-tickets-72156904243#tickets. 



Unions Sue USDA, Seeking to Halt New Pork Processing Rule

(AP) -- The union representing workers at pork processing plants sued the federal government on Monday to challenge a new rule that allows companies to set line speeds and turn over more food safety tasks to company employees.

The United Food and Commercial Workers International Union and local unions in Minnesota, Iowa and Kansas joined with nonprofit consumer advocacy group Public Citizen to file the lawsuit in federal court in Minneapolis.

The lawsuit alleges that the new rule announced in September by the U.S. Department of Agriculture violates the Administrative Procedure Act because it isn't backed by reasoned decision-making and should be set aside.

A spokeswoman for the USDA's Food Safety and Inspection Service said the agency does not comment on pending litigation.

UFCW International President Marc Perrone said there is no evidence that line speed increases can be done in a manner that ensures food and worker safety.

"Increasing pork plant line speeds not only is a reckless giveaway to giant corporations, it will put thousands of workers in harm's way," he said.

Swine slaughter workers regularly have reported extreme pressure to work as quickly as possible, which increases the risk of knife injuries, knee, back, shoulder and neck traumas, and repetitive motion injuries including carpal tunnel syndrome, the union said in a statement.

In June, the USDA's Office of Inspector General launched an investigation into its rulemaking procedure at the request of 17 members of Congress. Public Citizen and UFCW are asking the court to block implementation of the rule and to set it aside.

Local UFCW units joining the lawsuit represent pork slaughter workers in Brooklyn Center, Minnesota; Denison, Iowa and Bel Aire, Kansas.



August Exports Strong for U.S. Pork; Beef Exports Below Last Year

U.S. pork exports continued to post very strong results in August, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF), while beef exports were below the record-large totals of August 2018.

August pork exports increased 22% from a year ago to 221,586 metric tons (mt), while export value climbed 19% to $588.8 million. These results pushed January-August export volume 4% ahead of last year's pace at 1.7 million mt, while value increased 1% to $4.35 billion.

Pork export value averaged $54.18 per head slaughtered in August, up 22% from a year ago. For January through August, the per-head average was down 2% to $51.70. August exports accounted for 27.1% of total U.S. pork production and 23.7% for muscle cuts only, up significantly from a year ago (21.9% and 19.2%, respectively). January-August exports accounted for 26.4% of total pork production and 23% for muscle cuts, both up slightly year-over-year.

August beef exports totaled 114,119 mt, a 4% decline from last year's large volume, while export value ($690.3 million) was down 8%. January-August beef exports were slightly below last year's record pace, declining 2% in volume (881,526 mt) and 1% in value ($5.44 billion).

Beef export value per head of fed slaughter averaged $298.94 in August, down 7% from a year ago, while the January-August average was down 3% to $309.85. August exports accounted for 14% of total U.S. beef production and 11.3% for muscle cuts only, down from 14.3% and 12.2%, respectively, last year. Through the first eight months of the year, exports accounted for 14.2% of total beef production and 11.6% for muscle cuts, down from 14.6% and 12.1%, respectively, in 2018.

Emerging markets strong for U.S. pork, even as exports rebound to China and Mexico
Although still held back by China's retaliatory duties, China/Hong Kong was the largest destination for U.S. pork in August at 63,656 mt, more than tripling the August 2018 volume, while export value climbed 160% to $137.6 million. For January through August, exports to China/Hong Kong were up 38% in volume (356,322 mt) and 17% in value ($717.9 million).

Since Mexico removed its 20% retaliatory duty on U.S. pork in late May, exports have rebounded significantly but are still trailing the record-large numbers posted in 2017. August exports to Mexico were down 1% year-over-year in volume (61,365 mt), but value increased 18% to $121.1 million. A slow start to the year still weighs on January-August exports to Mexico, which were down 11% from a year ago in both volume (473,309 mt) and value ($821.8 million).

"China's demand for imported pork has increased steadily over the past few months and the U.S. industry is well-positioned to help fill that need," said USMEF President and CEO Dan Halstrom. "But the really positive story behind these numbers is that even as U.S. exports to China/Hong Kong have surged and exports to Mexico rebounded after the removal of retaliatory duties, demand in other markets is proving resilient and continues to grow. This is exactly why the U.S. industry invested in emerging markets over the years, and it is definitely paying dividends."

The U.S. and Japan recently announced an agreement that will bring tariffs on U.S. pork in line with those imposed on major competitors, and August export results illustrated the pressing need for tariff relief. August volume was down 19% to 28,240 mt, while value fell 18% to $120.1 million. Through August, exports to Japan trailed last year's pace by 6% in both volume (250,540 mt) and value ($1.03 billion). U.S. exports of ground seasoned pork to Japan have been hit particularly hard by the tariff gap (20% compared to 13.3% for the European Union and Canada), with Japan's imports through August falling by 28% — nearly $60 million — compared to last year.

January-August highlights for U.S. pork include:
-    Led by steady growth in mainstay market Colombia and surging demand in Chile, exports to South America climbed 28% above last year's record pace in volume (105,344 mt) and 30% in value ($264.7 million). Shipments to Peru cooled in August but have also contributed to export growth in 2019.
-    Exports to Central America were 16% above last year's record pace in volume (60,727 mt) and 19% higher in value ($147 million). Honduras and Guatemala are the largest Central American destinations for U.S. pork, and exports trended higher to both markets. Panama, Costa Rica and Nicaragua also contributed to regional growth, with exports increasing by double digits.
-    Exports to Oceania were up 38% from a year ago to 77,556 mt, while value increased 32% to $217.1 million. A key destination for hams and other muscle cuts used for further processing, exports to Australia jumped 36% from a year ago to 69,692 mt, valued at $192.5 million (up 31%). Growth to New Zealand was also impressive, with exports up 52% in volume (7,864 mt) and 48% in value ($24.6 million).
-    While January-August exports to South Korea were down 9% from last year's record pace in volume (145,690 mt) and fell 10% in value ($411.8 million), August exports were up significantly as volume climbed 27% to 14,336 mt and value surged 35% to $42.2 million. In mid-September, South Korea confirmed its first cases of African swine fever (ASF), with 13 outbreaks reported in the northwest corner of the country near the border with North Korea. While the disease is still confined to a relatively small area, ASF is certainly a pressing concern for Korea's domestic pork industry.
-    ASF has also impacted pork production in Southeast Asia, especially in Vietnam but also recently spreading into the Philippines. While U.S. exports to the ASEAN trailed last year's pace by 10% in volume (35,164 mt) and 19% in value ($81.1 million), the region's need for imported pork is likely to trend higher in coming months.

U.S. beef exports cool in August, but remain on strong pace
After setting new value records in June and July, U.S. beef exports to South Korea slowed 9% from a year ago in August to 22,307 mt, while value dropped 11% to $157.4 million. But for January through August, exports to Korea were still 8% ahead of last year's record pace in volume (174,290 mt) and 10% higher in value ($1.26 billion). Korean import data through August showed double-digit growth for U.S. beef in the top two cut categories: short rib and short plate/brisket. The United States accounted for more than 55% of Korea's chilled/frozen beef import volume, up from 53% in the first eight months of 2018.

Similar to pork, the U.S. beef industry looks forward to gaining tariff relief in leading market Japan, where August exports slipped 15% from a year ago to 28,646 mt. Value was down 22% to $164.3 million, although it is important to note that exports in August 2018 were a post-BSE record $209.3 million. For January through August, exports to Japan were 3% below last year's pace in volume (217,698 mt) and 4% lower in value ($1.36 billion). Beef variety meat exports to Japan (mainly tongues and skirts) have been a bright spot in 2019, increasing 31% in volume (44,617 mt) and 18% in value ($260 million). U.S. tongues and skirts face higher duty rates than competitors' products but are tariffed at 12.8% compared to 38.5% for U.S. muscle cuts.

"The U.S. beef industry is extremely excited at the prospect of lower tariffs in Japan, as 38.5% is the highest rate assessed in any major market," Halstrom said. "As we've seen in Korea, where the tariff rate was once 40% but has been reduced by more than half, lower tariffs make U.S. beef even more affordable for a wider range of customers. While the agreement still needs parliamentary approval in Japan, importers are already enthused and preparing for long-awaited tariff relief."

January-August beef exports to China/Hong Kong fell 24% from a year ago in volume (60,259 mt) and 20% in value ($510.7 million). Several factors have impacted U.S. exports to the region, including street protests in Hong Kong that have slowed commerce and tourism. While supermarket sales remain strong in Hong Kong, the disruption has been particularly hard on the restaurant sector. Although China remains a small destination for U.S. beef and exports are hampered by China's retaliatory duties, January-August volume increased 23% from a year ago to 5,625 mt, valued at $44.7 million (up 12%).

January-August highlights for U.S. beef include:
-    Exports to Mexico, the third-largest international market for U.S. beef, were slightly lower than a year ago in volume (156,528 mt, down 1%), but value increased 5% to $729.5 million. Beef variety meat exports to Mexico were down 3% from a year ago to 62,504 mt, but commanded better prices as export value increased 12% to $166 million.
-    Although beef exports to Taiwan were modestly lower year-over-year in August, January-August exports were still 10% percent above last year's record pace in volume (42,785 mt) and 7% higher in value ($383.9 million).
-    Led by surging demand in Indonesia and solid growth in the Philippines and Vietnam, beef exports to the ASEAN region were 27% above last year's pace in volume (37,206 mt) and 12% higher in value ($180.6 million).
-    Strong August results in Central America pushed exports 4% above last year's pace in volume (9,898 mt) and 10% higher in value ($56.7 million), led by a strong performance in Panama and steady growth in Guatemala and Honduras.
-    Beef exports to the Dominican Republic continue to reach new heights, as volume increased 45% from a year ago to 6,060 mt, while value climbed 35% to $48.6 million.

Halstrom noted that the temporary loss of a major processing plant to a fire likely had a negative effect on August exports, but he does not expect to see a lasting impact.

"Beef supplies are tight throughout the world but the U.S. maintains a supply advantage, as production is expected to be record-large in 2020," he said. "Both domestic and international demand for U.S. beef remains strong, and there is significant potential for further export growth, especially once the U.S.-Japan agreement is implemented."

Lamb exports trend lower in August
August exports of U.S. lamb were down 12% year-over-year at 1,193 mt, while value declined 8% to $1.84 million. For January through August, exports remained 32% above last year's pace at 10,626 mt, while value increased 13% to $17.5 million. Lamb muscle cut exports were 17% lower than a year ago in volume (1,397 mt) but slightly higher in value ($9.5 million, up 1%). Markets showing promising muscle cut growth included the Dominican Republic, Trinidad and Tobago and Panama.



Farmers and Ranchers Celebrate Japanese Trade Deal, Look Forward to More

President Trump today signed the U.S.-Japan Trade Agreement, which is an important step forward with U.S. agriculture’s fourth-largest export market.

American Farm Bureau Federation President Zippy Duvall says, “Today’s signing marks the successful end to more than a year of negotiation between Japan and the United States. This agreement means sharply lower tariffs on our farm and ranch exports with the promise of more to come. And while we aren’t yet finished opening this market, the conclusion of these talks means we can now trade with Japan with the same advantages enjoyed by signers of the CP-TPP trade agreement. That’s great news.

Duvall continues, “We hope the momentum from this win carries through to the negotiations with China this week and sets the stage for similar bilateral agreements with other countries involved with the CP-TPP. We appreciate this Administration’s efforts to improve trade opportunities for farmers.”

BACKGROUND
U.S. negotiators have been working to develop new trade agreements with Japan and other countries in the wake of U.S. withdrawal from the multinational Trans-Pacific Partnership process.

The Japan bilateral agreement keeps intact essentially all the trade benefits the United States would have gained in Japan under TPP.

The agreement immediately eliminates all tariffs on U.S. exports of sweet corn, almonds, broccoli and prunes, among other things. Other tariffs on products such as ethanol, cheese and whey, fresh cherries and other farm and ranch products will be phased out over a number of years.

The U.S. will also benefit from increased export quotas on products such as corn starch, malt, potato starch, fructose and more.



Fischer Statement on U.S.–Japan Trade Agreements

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today after President Trump signed the official text of new trade agreements with Japan:

“This agreement between the U.S. and Japan is a victory for Nebraska’s farmers, ranchers, and ethanol producers. By securing reduced tariffs on a variety of exports like beef, pork and ethanol, this agreement expands markets for Nebraska’s great ag products. I appreciate the administration’s hard work on this deal, and look forward to continuing to work with the president toward additional trade agreements.”

Under these trade agreements, Japan will eliminate or lower tariffs on American beef, pork, wheat, ethanol, and more, as well as expand digital trade between the two countries.



Statement on Trade Agreement with Japan
Jennifer Houston, President, National Cattlemen’s Beef Association

National Cattlemen’s Beef Association (NCBA) President Jennifer Houston today issued the following statement after attending a White House ceremony in honor of the bilateral trade agreement between the United States and Japan that will lower Japan’s massive tariffs on U.S. beef.

“I was deeply honored to attend the ceremony at the White House where we celebrated a bilateral trade agreement with Japan. As the top market for U.S. beef exports, Japan accounts for one quarter of our exports and roughly $2 billion in annual sales. As a beef producer, I understand the value of exports to my bottom line, and President Trump understands that increased access to foreign markets like Japan is the economic stimulus we need. We are grateful for President Trump’s leadership and for the hard work of our trade negotiators who fought hard to strengthen our access to the Japanese market. Because of their efforts, future generations of American ranching families will benefit from trade with Japan.”

Houston hailed today’s announcement as an important step forward for the U.S. beef industry.

“For the past few years, U.S. beef producers have benefitted greatly from growing demand for U.S. beef in Japan. While Japanese consumers enjoy high quality U.S. beef, they unfortunately pay a higher price for U.S. beef due to the massive 38.5 percent tariff. Removing that tariff allows more Japanese consumers to enjoy more U.S. beef at a more competitive price. Today’s announcement is welcome news for American families who produce U.S. beef and Japanese families who purchase it.”

In 2018, Japanese consumers purchased $2.07 billion of U.S. beef. Currently, U.S. beef faces a massive 38.5 percent tariff in Japan, while our competitors from Australia, Canada, Mexico, and New Zealand face a 26.6 percent tariff. Leveling the playing field in Japan is a top priority for the National Cattlemen’s Beef Association.



NCGA Joins President Trump for U.S.-Japan Trade Agreement Signing

NCGA President Kevin Ross today joined leaders of other farm and commodity groups at the White House to commemorate the signing of the U.S.-Japan Trade Agreement. The agreement secures the second-largest export market for corn farmers. Ross made the following statement.

“Japan is the number two buyer of U.S. corn, purchasing more than $2 billion in the most recent marketing year. This is a high-value market for our livestock industry, therefore, also a major purchaser of U.S. corn through exported meats. NCGA has been a long-time supporter of trade with Japan. With many farmers struggling amid some challenging times, this is some much-needed good news. This agreement reaffirms and builds on our trading relationship with Japan and NCGA looks forward to continued work for a successful Phase 2 of these important negotiations.”



U.S. Grains Council Statement On Signing Of U.S.-Japan Trade Agreement

USGC Chairman Darren Armstrong, a corn farmer from Hyde County, North Carolina, on the signing of the U.S.-Japan trade agreement:

"I was very pleased to join President Trump and other U.S. agriculture leaders at the White House today for the signing of the agreement recently negotiated to solidify our country's trade relationship with Japan.

"This agreement provides certainty and stability in our second largest corn market, brings sorghum imports to a zero tariff level immediately and reduces the import markup on barley. We anticipate additional market access measures related to ethanol to be addressed in the next round of negotiations with Japan coming soon.

"We truly appreciate the deep ties we have built with our Japanese customers through decades of mutual work, and we appreciate the efforts of both governments to take this step forward into the future together."



U.S.-Japan Tariff Agreement Confirms Equal Access for U.S. Wheat

The text of the U.S.-Japan tariff agreement signed today in Washington, D.C., confirms that the agreement will provide imported U.S. wheat the same preferential advantage that is now given to Canadian and Australian wheat under the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Japan’s Diet must approve the agreement before it is implemented.

 “As we hoped, the text confirms that the agreement will put U.S. wheat back on equal footing with wheat from Canada and Australia when it is implemented,” said U.S. Wheat Associates (USW) President Vince Peterson who attended the event at the White House. “In addition, Japan has agreed to open country specific quotas for U.S. wheat and wheat product imports. The Trump Administration and negotiators for both countries clearly understood what was at stake for U.S. wheat farmers and made sure to have our backs in this agreement.”

 “NAWG is thrilled to be present during the signing of the U.S.-Japan tariff agreement, a major milestone for wheat growers,” said National Association of Wheat Growers (NAWG) President and Lavon, Tex., farmer Ben Scholz. “We would like to thank staff and leaders at USTR, USDA, and the Administration for working with the wheat industry as this agreement nears the finish line.”

 As USW and NAWG noted when President Trump and Prime Minister Abe announced the tariff agreement last month in New York, Japan’s effective tariff on imported U.S. wheat will drop to the same level Japanese flour millers now pay for Canadian and Australian wheat. Since the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement entered into force last December, market factors have kept U.S. wheat competitive. Without this new agreement, however, U.S. wheat imports would have become less and less cost competitive to the point that Japan’s flour millers would have no other choice than to buy more of the lower cost wheat from the CPTPP member countries.

 U.S. wheat represents about 50 percent of all the wheat Japan imports each year, currently valued at more than $600 million. That volume represents more than 10 percent of total annual U.S. wheat exports, generally benefiting all U.S. wheat farmers and specifically farmers from the Pacific Northwest to the Northern and Central Plains states.



NGFA commends signing of U.S.-Japan trade deal

National Grain and Feed Association (NGFA) President and CEO Randy Gordon issued the following statement after President Trump on Oct. 7 signed the U.S.-Japan Trade Agreement:

“NGFA commends the United States and Japan for consummating, effective Jan. 1, a stage one trade agreement that will preserve significant market access for U.S. agricultural products, including wheat and wheat products, pork and beef. Japan represents America’s third largest agricultural market, and this agreement was essential so that U.S. agricultural products were not put at a competitive disadvantage compared to the preferential tariff treatment accorded the 10 other countries signing onto the Comprehensive and Progressive Agreement for Trans-Pacific Partnership following the United States’ withdrawal from the Trans-Pacific Partnership trade accord, as well as the Japan-European Union trade agreement. NGFA is grateful that President Trump and Prime Minister Abe and their respective trade negotiators worked intensively to complete this agreement in a remarkably short, one-month period.

"NGFA also commends U.S. and Japanese trade negotiators for their commitment to engage in a second stage of trade negotiations starting in April that will focus on addressing additional agricultural tariffs, as well as important sanitary and phytosanitary and non-tariff barriers to trade, to enhance further the positive, mutually beneficial and long-standing U.S.-Japan trade relationship to benefit consumers, economic growth and job creation in both countries.”



USDA Opens 2020 Enrollment for Dairy Margin Coverage Program

Dairy producers can now enroll in the Dairy Margin Coverage (DMC) for calendar year 2020. USDA’s Farm Service Agency (FSA) opened signup today for the program that helps producers manage economic risk brought on by milk price and feed cost disparities.

“We know it’s tough out there for American farmers, including our dairy producers,” said Bill Northey, Under Secretary for Farm Production and Conservation. “As Secretary Perdue said, farmers are pretty good at managing through tough times, and we know that more dairy farmers will be able to survive with this 2018 Farm Bill and its risk mitigation measures, like the Dairy Margin Coverage program.”

The DMC program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. The deadline to enroll in DMC for 2020 is Dec. 13, 2019.

Dairy farmers earned more than $300 million dollars from the program in 2019 so far. Producers are encouraged to take advantage of this very important risk management tool for 2020.

All producers who want 2020 coverage, even those who took advantage of the 25 percent premium discount by locking in the coverage level for five years of margin protection coverage are required to visit the office during this signup period to pay the annual administrative fee.

“Dairy producers should definitely consider coverage for 2020 as even the slightest drop in the margin can trigger payments,” said Northey. “Dairy producers should consider enrolling in DMC to guard against what has been, for several years, an extremely unforgiving market.”



Congress Must Compel FDA to Enforce Butter Law, American Butter Institute Says

Noting that the Butter Act of 1923 gives the Food and Drug Administration no leeway in enforcing a congressional statute that defines the food as a dairy product, the American Butter Institute sent letters to the chairmen and ranking members of the House Committee on Energy and Commerce and the Senate Committee on Health, Education, Labor, and Pensions, urging them to compel FDA to enforce federal law against plant-based imposters that illegally misuse the term “butter” as a marketing trick.

“When it comes to violations of the Butter Act specifically, Congress did not give the Food and Drug Administration any enforcement discretion on the matter,” Tom Balmer, executive director of the American Butter Institute, said in the Oct. 4 letter. “Congress stated very precisely the ingredients from which butter is to be made and its final composition. FDA’s non-action in enforcing what Congress has mandated represents, in essence, a federal agency’s rewriting of a Congressional act and usurping Congressional authority.”

Butter’s definition has been settled law for more than a century, covered by legislation dating to 1886. Imitators made from vegetable oils have been able to use terms such as “margarine” and “spread,” ensuring a transparent marketplace. However, as butter’s popularity has grown in recent years – per-capita U.S. consumption last year reached its highest since 1968 – marketing departments at brands such as Country Crock® have been breaking the law by calling their margarines and spreads “plant-based butter” – an attempt to cash in on butter’s popularity that tarnishes a product that has had a consistent identity for generations.

“Words have meaning, power, and consequences,” Balmer writes. “We know this. You know this. ‘Misregulation,’ ‘confusion,’ ‘misinformation,’ and ‘obfuscate’ are not terms that should be used to describe the marketing of our nation’s food supply. Accordingly, we urge you to continue efforts to compel the Food and Drug Administration to enforce the statutory definition of the term ‘butter.’

The letter was released in conjunction with the organization’s annual conference, held this year in Tucson, Arizona. One year ago, ABI filed a lengthy complaint to the FDA in September calling out imitators. The organization also supports the National Milk Producers Federation’s citizen petition with the agency filed in February, outlining a roadmap toward a constructive resolution of the problem of mislabeled, fake dairy products.



Cattle Recordkeeping Booklet For 2020 Available from NCBA

Cattle producer record-keeping can be improved and simplified through the Redbook, a pocket-sized recordkeeping tool from the National Cattlemen’s Beef Association. Made available yearly for more than three decades, NCBA’s 2020 edition helps cattle producers effectively and efficiently record their daily production efforts, helping enhance profitability.

                In addition to an area for recording Beef Quality Assurance practices and proper injection technique information, the 2020 Redbook has more than 100 pages to record calving activity, herd health, pasture use, cattle inventory, body condition, cattle treatment, AI breeding records and more. It also contains a calendar and notes section.

                Redbooks can be purchased for $7.00 each, plus shipping and handling. To order, visit https://store.ncba.org.      



ASA Soy Recognition Awards Nomination Period Ends Oct. 14

The American Soybean Association (ASA) wants to recognize exceptional soy volunteers and leaders—and we need your help. During ASA’s annual awards banquet, individuals will be recognized and honored for state association volunteerism, distinguished leadership achievements and long-term, significant contributions to the soybean industry. The nomination period is open through Oct. 14, 2019.

The Recognition Awards categories are:
-    ASA Outstanding State Volunteer Award–Recognizes the dedication and contributions of individuals who have given at least three-years of volunteer service in any area of the state soybean association operation.
-    ASA Distinguished Leadership Award–Distinguished and visionary leadership of ASA or a state soybean association is recognized with this award to either a soybean grower-leader or association staff leader with at least five-years of leadership service.
-    ASA Pinnacle Award–An industry-wide recognition of those individuals who have demonstrated the highest level of contribution and lifetime leadership within the soybean family and industry.

All nominations must be received online, no later than Monday, Oct. 14, 2019. No nominations by telephone, email or fax will be accepted. A judging committee will be assigned to make the final selections.

Recipients will receive their awards at the ASA Awards Banquet on Friday, Feb. 28, 2020, in San Antonio, Texas at Commodity Classic.



INTL FCStone Completes the Acquisition of the Futures and Options Brokerage and Clearing Business of UOB Bullion and Futures Limited in Singapore

INTL FCStone Inc. today announced that its Singaporean subsidiary INTL FCStone Pte Ltd has met all conditions of the Asset Purchase Agreement it entered into on 18 March 2019, and completed the acquisition of the futures and options brokerage and clearing business of UOB Bullion and Futures Limited, a subsidiary of United Overseas Bank Limited.

As part of the acquisition, IFP upgraded its Capital Markets Services license in Singapore so it can offer full service brokerage encompassing dealing in exchange-traded derivatives contracts, over-the-counter derivatives contracts and spot foreign exchange contracts for the purposes of leveraged foreign exchange trading.   IFP was also admitted as a Trading Member of Singapore Exchange Derivatives Trading Limited and Clearing Member of Singapore Exchange Derivatives Clearing Limited.

Greg Kallinikos, Chief Executive Officer of IFP and Deputy CEO, Asia for INTL FCStone Group, commented on the closing of the transaction, “The successful completion of our acquisition of UOB Bullion and Futures Limited’s F&O business in Singapore marks the beginning of a new, exciting era for INTL FCStone in Asia. We are both thrilled and honoured by the prospect of serving our new customers and look forward to building long lasting relationships with all of them. This transaction significantly enhanced our regional and international capabilities with the addition of SGX as another major exchange we now offer clearing and execution services on. This is an important milestone in expanding INTL FCStone’s presence in Asia and fully supports our plans of offering a one-stop solution for all our customers’ market access needs for listed derivatives globally.”