Thursday January 16 Ag News + USMCA Passage

New crops, cow-calf budgets available for 2020

Two decision-making tools created by Nebraska Extension for agricultural producers across the state have been updated for the new year.

The 2020 Nebraska crop budgets https://cropwatch.unl.edu/budgets and new representative cow-calf budgets https://go.unl.edu/cow-calfbudgets are now available to provide producers with cost-of-production estimates.

Both sets of budgets are available as PDFs and Excel files, which feature tools that allow users to enter their own information into worksheets to calculate their estimated production costs.

“Both the crop and livestock budget files are made available online so producers can download, then modify production and expense figures to more closely match their various enterprises,” said Glennis McClure, an extension educator in the Department of Agricultural Economics. “Understanding enterprise cost of production in agriculture is important in product mix decision making, pricing, marketing, and financial analysis.”

The crop budgets include 82 production budgets for 15 crops produced in Nebraska, along with cost data for power, machinery and labor. They were compiled by a team led by Robert Klein, an extension western Nebraska crops specialist, and McClure, utilizing a template created by Roger Wilson, a retired extension farm and ranch management analyst.

There are five cow-calf budgets that offer representative herd data for different regions of the state. Background stories are included to assist producers with information relevant to each budget, which may guide producers in determining their own costs. McClure led the cow-calf budget effort as they were compiled from information gathered from producer panels that have met as part of the university’s multidisciplinary Beef Systems Initiative.



Rural Mainstreet Index Begins 2020 on Strong Footing: Bank Loans to Farms Lowest in Almost 7 Years

The Creighton University Rural Mainstreet Index (RMI) for January climbed to its highest level since June 2018. January’s reading marked the fifth straight month the reading has moved above growth neutral according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.     

Overall: While the overall index for January rose to 55.9 from 50.2 in December. It was the 11th time in the past 12 months that the index has risen above growth neutral 50.0.

 “Only 17.7% of bank CEOs reported that their local economy was in an economic downturn.  This is an improvement from one year ago when 22.9% indicated that their local economy was in a recession, or economic downturn,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. 

Farming and ranching: After moving above growth neutral last month, the farmland and ranchland-price index fell to 45.6 from December’s much stronger reading of 52.8. This is the 73rd time in the past 74 months that the index has fallen below growth neutral.

While farm land prices have weakened for several years, property taxes on that land have tended to rise. Two of three Nebraska bankers reported property taxes as a significant factor reducing farm profitability, while only one in 10 non-Nebraska bankers indicated property taxes were a significant factor reducing farm profitability," said Goss.

The January farm equipment-sales index increased to a weak 35.0 from December’s 27.9. This marks the 76th month that the reading has remained below growth neutral 50.0. 

This month, bankers were asked to project farm equipment sales for 2020. On average, bank CEOs expect sales to decline by 4.2% this year.
 
Below are the state results:
Nebraska: The Nebraska RMI for January increased to 49.1 from December’s 44.3. The state’s farmland-price index fell to 44.8 from last month’s 52.1. Nebraska’s new-hiring index slumped to 45.8 from December’s 53.4. Over the past 12 months rural areas in Nebraska lost jobs at a rate of minus 1.1% compared to a gain of 2.6% for urban areas of the state. 

Iowa: The January RMI for Iowa increased to 56.1 from December’s 53.5. Iowa’s farmland-price index slumped to 45.3 from December’s 52.5. Iowa’s new-hiring index for January advanced to 57.2 from December’s 48.7. Over the past 12 months rural areas in Iowa have experienced job losses with employment growth at minus 0.6% compared to a stronger 1.1% for urban areas of the state.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. 

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Nebraska Beef Council Board Meeting January  29, 2020

The Nebraska Beef Council Board of Directors will meet at the NBC office in Kearney located at 1319 Central Ave. on Wednesday January 29, 2020 beginning at 10:00 a.m. CST. The NBC Board of Directors will have election of officers and review the final audit report for FY- 2018-2019. For more information, please contact Pam Esslinger at pam@nebeef.org.



RFA’s Cooper Offers Outlook for Ethanol’s Future at Iowa Summit

As the keynote speaker at the Iowa Renewable Fuels Summit today, Renewable Fuels Association President and CEO Geoff Cooper shared four ethanol predictions for the new decade and recapped the successes and tribulations of 2019.

“What made 2019 such an especially frustrating year is that our policy and regulatory wins were often overshadowed by new obstacles and unexpected setbacks,” Cooper said. “At every turn, it seemed our hard-fought victories were eclipsed by new impediments and a general sense of malaise and cynicism in the marketplace.”

Cooper cited many policy successes for the industry, from approval of year-round E15 and a presidential visit to an Iowa ethanol plant to EPA finally including measures to reallocate RFS blending volumes lost to small refinery exemptions. Despite these victories, he said, the “promise of new demand evaporated when trade wars crimped export opportunities and EPA doled out dozens of secret refinery waivers.”

Cooper also offered four predictions for the new decade. First and foremost was that the battle over the Renewable Fuel Standard will not only continue but intensify. “We know refiners are already working to recast the post-2022 RFS into something that limits the use of ethanol and other biofuels and fails to drive further growth,” he said. “We can’t let that happen. That’s why we are redoubling our efforts to ensure the RFS remains intact as the transformative and growth-oriented program Congress intended it to be in 2023 and well beyond.”

Going into 2020 and beyond, Cooper also predicted that low carbon fuel standards will spread; that with thawing trade wars, U.S. ethanol exports will resume vigorous growth; and that—at some point in this decade—E15 will become the standard gasoline blend in the United States.

Regarding the last of these, Cooper reminded his audience of the history of E10. “Twenty-five years after its commercial introduction, E10 still only accounted for about 20 percent of total US gasoline sales,” he said. “But in just seven years—between 2003 and 2010—E10 saw hockey-stick growth and went from about 20 percent of the market to almost 100 percent of the market.”

Closing his speech with a note of optimism, Cooper ended with a fifth prediction that flows from these prior ones: “Ethanol’s best and brightest days are ahead of us!”

Organized by the Iowa Renewable Fuels Association, the Iowa Renewable Fuels Summit is taking place this year in Altoona, Iowa.



New USB-FFAR Partnership Boosts Protein in Soybeans

A $3.2 million investment between the United Soybean Board (USB) and the Foundation for Food and Agriculture Research (FFAR) is enhancing the U.S. soy industry’s competitive advantage, driving opportunities for American soybean farmers. This partnership specifically funds research to improve the protein content and quality of U.S. soybeans while protecting yield.

“Leveraging USB funds in this manner with other public and private collaborators extends the reach and potential impact of USB investments, as well as increases buy-in from key value chain partners,” says USB Vice President of Meal Strategy Keenan McRoberts. “USB will continue to seek and act on opportunities like this to amplify the soy checkoff’s investment reach, impact and returns through critical partnerships and leveraged funding sources.”

USB and FFAR are co-funding soybean research to support four projects:
    Dr. George Graef, with the University of Nebraska-Lincoln, is leading an interdisciplinary team to improve genetic diversity, seed composition and yield of soybeans using highly productive soybean genetic resources, breeding, genomics, and biotechnology to identify and understand key genes involved in soybean seed protein composition. It also includes developing soybeans capable of producing a 48% protein meal and 11 pounds of oil per bushel, with good amino acid balance and yield that meet or exceed yield of elite varieties in MG 0 to V. This project received $778,078 from USB and $651,673 from FFAR for a total award of $1,429,751, with funding available through September 2021.

    Dr. Rouf Mian, with USDA-North Carolina State University, is utilizing genetically diverse soybeans and wild relatives to develop new germplasm varieties with consistently elevated protein and yields comparable to commercial varieties. The project aims to release at least five soybean varieties capable of producing more than 48% meal protein and higher yields. The project received $810,114 from USB and $695,020 from FFAR for a total award of $1,505,134, with funding available through September 2020.

    Dr. Doug Allen, with USDA-Donald Danforth Plant Science Center, is identifying the novel amino acid composition genes in the mutant variety and taking advantage of a new analytical method to create a more nutritious soybean. Soybean meal, considered a gold standard to which most protein sources are compared, contains an inadequate amount of sulfur amino acids. Earlier research uncovered soybeans with enhanced sulfur-containing amino acids in a mutant variety. USB contributed $96,578 and FFAR invested $80,886 for a total award of $177,464, with funding available through September 2020.

    Dr. Yong-Qiang An, with USDA-Donald Danforth Plant Science Center, is identifying the genes that result in elevated protein and using them in breeding efforts of commercial soybean varieties. The identification and validation of these genes has the potential to create both a more nutritious soybean as well as a more profitable one for farmers. The project was awarded $86,468 from USB and $72,421 from FFAR for a total award of $158,889, with funding available through September 2020.

“The protein content in soybeans, on average, is decreasing,” says Sally Rockey, Ph.D., FFAR’s executive director. “By partnering with USB, we are investing in research to increase the protein content of U.S. soybeans. This research not only helps U.S. soybean farmers remain competitive, but also adds additional protein to the food supply.”

 “Our goal is to meet the needs of U.S. soy customers around the globe who seek increased protein content and consistent, high-quality soybeans,” says USB Chair and Arkansas farmer Jim Carroll. “We also have a commitment to protect yields, which supports both environmental and financial sustainability.”

FFAR has invested $1.5 million, and with matching funding from USB, this partnership is contributing more than $3 million to this research. These projects went through USB’s competitive FY20 funding process. In looking forward to 2021, USB’s FY21 Request for Pre-Proposals can be found at www.unitedsoybean.org/request-for-proposals.

In addition to identifying ways to improve crude protein content and overall quality of U.S. soybeans, USB also anticipates the findings will help strengthen the U.S. soybean industry’s position in the marketplace, developing and expanding domestic and foreign markets.

McRoberts adds, “Protein is the fundamental building block of our food supply, and a Protein First approach, extending access to plant- and animal-based foods with this key macronutrient, is a priority for the U.S. soy community.”



Peterson, Costa Welcome Funding for Farm Bill Animal Pest and Disease Programs, Progress on Vaccine Bank

Following an announcement from USDA on the award of $10.2 million in funding for animal pest and disease prevention and management efforts and the request for vaccine bank Foot and Mouth Disease proposals, House Agriculture Committee Chairman Collin Peterson of Minnesota, and House Agriculture Livestock and Foreign Agriculture Subcommittee Chairman Jim Costa of California issued the following statement. Both Peterson and Costa led bipartisan efforts to include of mandatory, long-term funding for these programs to ensure the U.S. has tools to address disease risks including African Swine Fever, Avian Influenza, Virulent Newcastle Disease, and Food and Mouth Disease.

“In the last Farm Bill, we fought hard to establish and fund the National Animal Disease Preparedness and Response Program (NADPRP) and the new National Animal Vaccine and Veterinary Countermeasures Bank as well as reauthorize the National Animal Health Laboratory Network. As our committee oversees Farm Bill implementation, we are pleased to see USDA moving forward on all three of these programs. These important tools will help prevent and respond to animal pests and diseases, help keep animals healthy and ensure markets stay open. We look forward to seeing these programs address an even wider range of prevention and mitigation activities in future years.”



USDA Announces Plenary Speakers for the 2020 Agricultural Outlook Forum

The U.S. Department of Agriculture (USDA) announces plenary speakers for the 2020 Agricultural Outlook Forum (AOF), to be held Feb. 20–21, 2020, in Arlington, Va., under the theme “The Innovation Imperative: Shaping the Future of Agriculture.”

The opening plenary session will feature a fireside chat between Secretary of Agriculture Sonny Perdue and John Hartnett, Founder and CEO of SVG Ventures, a platform of corporations, universities, and investors focused on the food and agriculture industries. Secretary Perdue and Mr. Hartnett will discuss the future of agriculture, challenges facing the sector, and emerging solutions that could address them.

The fireside discussion will be followed by a panel titled “Innovation as a solution for farmers,” which will bring together industry leaders to speak about various aspects of innovation and implications for farmers. Speakers at the plenary panel include:
    Frank Yiannas, Deputy Commissioner for Food Policy and Response, U.S. Food and Drug Administration (FDA)
    Jeff Broin, founder of POET
    Shari Rogge-Fidler, President of Farm Foundation

The session will be moderated by John Newton, Chief Economist at the American Farm Bureau Federation.

Also during the Thursday morning session, USDA Chief Economist Robert Johansson will unveil the Department’s outlook for U.S. commodity markets and trade in 2020 and discuss the U.S. farm income situation.

Along with the plenary presentations, Forum attendees can choose from 30 sessions with more than 90 speakers. Among the concurrent track sessions and topics supporting this year’s theme are: innovations in agriculture, global trade trends, food loss and waste, frontiers in conservation, and the science of food safety. Participants can also take part in a pre-forum field trip on February 19, which will feature a local urban farm enterprise and a visit with scientists who conduct research on microgreens, locally adapted fruit varieties and other urban farming topics at USDA’s Beltsville Agricultural Research Center. A nominal fee covers transportation and a boxed lunch.

Now in its 96th year, the Agricultural Outlook Forum is USDA’s largest annual meeting and the sector’s premier event, attracting around 1,600 attendees each year from the U.S. and abroad. The forum highlights key issues and timely topics affecting the agriculture sector, offering a platform for exchanging information and ideas among producers, processors, policymakers, government officials, and non-governmental organizations, both foreign and domestic.



USDA Seeks Input on New Ethanol Sales Infrastructure Incentive Program

The U.S. Department of Agriculture (USDA) is seeking public input to help with the creation of the Higher Blends Infrastructure Incentive Program (HBIIP), a new program that will expand the availability of domestic ethanol and biodiesel by incentivizing the expansion of sales of renewable fuels.

“Feedback from farmers, retailers and biofuels producers is critical to the success of this future program,” Agriculture Secretary Perdue said. “Under the leadership of President Trump, USDA remains committed to fulfilling a key promise to American farmers to enhance the promotion of biofuels."

President Trump has made it abundantly clear he is unleashing the full potential of American energy production as we retake our rightful place as the world’s leader and become energy independent. Expanding the sale of biofuels will provide consumers with more choices when they fill up at the pump, including environmentally friendly fuel with decreased emissions, driving demand for our farmers and improving the air we breathe.



Growth Energy welcomes USDA outreach on biofuel infrastructure plan

Today, the U.S. Department of Agriculture (USDA) announced a request for information on biofuel infrastructure priorities, seeking feedback from stakeholders on a key element of president’s promise to expand markets for higher ethanol blends like E15. Growth Energy CEO Emily Skor issued the following statement: 

“We appreciate the USDA’s outreach, and we look forward to sharing our insights on efforts to expand the availability of cleaner, lower-cost fuel options. Restoring integrity to the Renewable Fuel Standard and breaking down market barriers to higher ethanol blends are pillars of the president’s commitment to farm families and rural workers, and positive results are well overdue. Smart infrastructure investments will support rural jobs and allow more drivers across the nation to take advantage of the administration’s move to unleash sales of E15 year-round.” 

Working hand-in-hand with Prime the Pump, a nonprofit organization dedicated to helping build the infrastructure and distribution of higher biofuel blends, Growth Energy has doubled the number of E15 stations five years in a row to include more than 2,000 stations across 30 states.

Background: 
The USDA announced on Jan. 16, 2020 they are seeking input from all interested parties on a Higher Blends Infrastructure Incentive Program (HBIIP). USDA is exploring options to expand domestic ethanol and biodiesel availability and is seeking information on opportunities to consider infrastructure projects to facilitate increased sales of higher biofuel blends (E15/B20 or higher.) This effort will build on biofuels infrastructure investments and experience gained through the Biofuels Infrastructure Partnership (BIP). USDA administered BIP from 2016-2019 through state and private partners to expand the availability of E15 and E85 infrastructure to make available higher ethanol blends at retail gas stations around the country. 



Sen. Roberts, Bushue receive top Farm Bureau honors

The American Farm Bureau Federation will be presenting its highest honors, the Distinguished Service Award and the Farm Bureau Founders Award, to Sen. Pat Roberts (R-Kan.) and Barry Bushue, respectively, during AFBF’s 101st Annual Convention.

AFBF established the Distinguished Service Award in 1928 to honor individuals who have devoted their careers to serving the national interest of American agriculture. The Farm Bureau Founders Award was established in January 2017 to recognize exemplary leadership, service or contributions to Farm Bureau by officers or employees of AFBF and state Farm Bureau organizations.

Sen. Pat Roberts has served Kansas in the U.S. Congress since 1981, first in the House of Representatives then in the U.S. Senate. He is the only member in history to serve as chairman of both the Senate and House Agriculture committees, leading bipartisan coalitions to pass eight farm bills. Sen. Roberts has a long record of bipartisanship on ag issues, highlighted by his public commitment to work side-by-side with Sen. Debbie Stabenow (D-MI), Ranking Member of the Senate Agriculture Committee, to pass the 2018 farm bill.

Sen. Roberts says, “The ag committee is like a family. That’s the way it was in the House and it is now, even through very, very tough times. She [Sen. Stabenow] is a Democrat, I’m a Republican. We don’t vote alike on the floor a lot, but we knew we had to get this bill done. Certainty and predictability – that was the key.”

As a former U.S. Marine, Sen. Roberts chaired the Senate Intelligence Committee for four years, a role which took him to a Soviet-era secret city in 1999. There he reports seeing stockpiles of pathogens, including hoof and mouth disease, an infectious and sometimes fatal disease that affects cloven-hoofed animals, being weaponized. The experience motivated him to help secure funding for the National Bio and Agro-Defense Facility, which is slated to open in two years.

Sen. Roberts is a mentor to many and strong supporter of agriculture in Kansas and across the country. Richard Felts, president of the Kansas Farm Bureau, says, “Sen. Roberts’ retirement is going to create a big void for us in agriculture. He’s been there for quite some time, I won’t say an institution, but has a tremendous amount of experience and tenure. And not only that, he has a lot of respect among his peers that really looked up to him, and we’re going to miss that leadership that he has been able to provide.”

Barry Bushue served as the vice-president of AFBF from 2008-2016 and is known as a tireless worker, mentor and fundraiser. He served as the Oregon Farm Bureau President and on the AFBF Board of Directors, Executive Committee, Trade Advisory Committee and the Vision for Action Task Force. He is a firm believer that farmers and ranchers should get involved in education and the policy making process.

Bushue says, “Activism needs to be a part of your business plan. You budget for fertilizer, you budget for your seed, you budget for maintenance, you budget for all these things you do, new tractors, whatever it is you need. But, if you don’t have a line item that somehow represents an activist piece of what it is you do and show your passion for agriculture, then I think you are missing something on your farm.”

Bushue and his wife, Helen, invite members of the public to their family farm outside Portland, Oregon, to pick various fruits, vegetables, and a fall favorite, pumpkins. Bushue says opening his farm to the public comes with its challenges but he has developed a customer base that recognizes the value of agriculture.

Sharon Waterman, also a former president of the Oregon Farm Bureau, talks about Bushue’s affection for Farm Bureau, “Barry talks about the Farm Bureau family and what we can do as a Farm Bureau family because if we stand together for agriculture, we can move forward.”

Bushue says his father told him if he was going to farm smart, he needed to be part of Farm Bureau, adding, “He said, ‘We’re going to go to the [Farm Bureau] meeting tonight, and you’re going with me. I embraced it and I loved it. I’ve always had a passion for it, I think I inherited that, it’s probably genetics in our family.”

Sen. Pat Roberts was nominated by the Kansas Farm Bureau. Barry Bushue was nominated by the Oregon Farm Bureau. A national Farm Bureau committee selected each of the winners.



Sorghum Checkoff Opens Applications for Leadership Sorghum Class V

The Sorghum Checkoff is accepting applications for Leadership Sorghum Class V, a program designed to develop the next generation of sorghum leaders.

During the 15-month leadership program, class members will be exposed to various aspects of the sorghum industry in addition to personal development and networking opportunities. Through both hands-on and classroom-style learning experiences, class members develop an understanding of how sorghum moves through the value chain, how checkoffs and stakeholder organizations interact on behalf of the industry and what the future holds for sorghum.

“Leadership Sorghum allows for the cultivation of leaders within the sorghum industry who are passionate about the industry and driven to learn more,” Sorghum Checkoff Executive Director Florentino Lopez said. “By investing in this program we are not only investing into the individual class members, but the U.S. sorghum industry as a whole. We are equipping these farmers with skills, knowledge and understanding to be champions for the industry themselves and their local communities.”

USDA-approved criteria state eligible applicants must be farmers actively engaged in sorghum production within the U.S. and U.S. citizens. Fifteen growers will be accepted into the program's fifth class. More information on the class schedule and program criteria can be found at LeadSorghum.com.

“Watching each class member grow, learn and experience new things has been so fulfilling,” Sorghum Checkoff Marketing Director and Leadership Sorghum Program Coordinator Shelee Padgett said. “We are equipping each class of Leadership Sorghum with the tools to advocate for sorghum, take new-found knowledge back to their communities and further the industry by becoming involved in leadership positions across the industry.”

Full consideration will be given to all applicants regardless of age, gender, race or occupation. Every effort will be made to select a class, based on the applicant pool, which is representative of the entire sorghum industry, its diversity and rural community interests.

Applications for the program are available at LeadSorghum.com and are due by 5:00 p.m. CST March 27, 2020. The accompanying reference forms must be submitted by the March 27 deadline, as well. Following the application deadline, all applications and references will be reviewed by a selection committee. Finalists may be contacted via phone to arrange an interview.



Ranchers Warned About Dismantled Competitive Infrastructures

R-CALF USA spoke to hundreds of Colorado and New Mexico ranchers during meetings held in Brush and La Junta, Colo. and Las Cruces, N.M. last week and over the weekend.

The Colorado meetings were cosponsored by the Colorado Independent CattleGrowers Association and the Southern Colorado Livestock Association. The Las Cruces, N.M. meeting was sponsored by the Range Allotment Owners Association.

In opening remarks, R-CALF USA CEO Bill Bullard reported that in November 2019 while U.S. fed steer prices averaged $116 per hundredweight, steers in Argentina, Brazil and Australia averaged about $39, $70, and $88 per hundredweight, respectively.

"You operate in a global marketplace and the goal of the multinational beef complex is to normalize global cattle prices so they can seamlessly source low-cost cattle from anywhere in the world and sell the resulting beef in whichever country pays the highest prices.

"How can you expect to compete against this world supply of cheaper cattle and cheaper beef when packers and retailers who sell beef from your superior U.S. cattle are not required to distinguish it as a U.S. product with a country-of-origin label?" he rhetorically asked the audiences.

Moving on in his presentation titled "Why America is Losing Its Ranches," Bullard explained the trajectory of the U.S. cattle industry is pointed downward as a result of historically shrinking numbers of U.S. cattle producers, U.S. cattle, U.S. feedlots, U.S. livestock auction yards, and U.S. meatpackers.

He said the promises and expectations surrounding the implementation of the North America Free Trade Agreement (NAFTA) of creating more beef demand, more market access, and more opportunities to strengthen the U.S. cattle industry never materialized.

"In fact, the exact opposite occurred. Economic returns to cow/calf producers and feeders were less during the 25 years of NAFTA than they were in the years before NAFTA."

Bullard explained that what was most alarming was the dismantling of the industry's competitive infrastructure during 25 years of NAFTA. He said the industry lost 20% of its cattle operations, 3 million of its mother cows, 75% of its farmer-feeders, 25% of its livestock auction yards, and about 48 meatpackers.

"To remain viable, a livestock industry must maintain a critical mass of competitive infrastructure, meaning you must maintain sufficient numbers of producers, cattle, marketing outlets and all the support businesses needed to sustain robust competition all across the nation. Once you lose those, it's game over because you won't bring them back.

"Just ask your friends in your sister hog, poultry and sheep industries how competitive they are now that their respective competitive infrastructures have been dismantled," he said.

Bullard said the cattle industry still has the critical mass of competitive infrastructure to maintain a competitive industry for its independent producers. But he warned that unless the current trajectory of the industry is changed, the point of no return will soon be reached.

"You can't change this trajectory on your own. That means we must get organized right now so we are strong enough to fix our broken markets, restore mandatory country-of-origin labeling for beef, and stop the government from partnering with multinational companies who are trying to capture control over our live cattle supply chain. We can do this if we stand together as a group dedicated to make needed changes," he concluded.

---------------------------------------------------------


 Secretary Perdue Statement on Senate Passage of USMCA

U.S. Secretary of Agriculture Sonny Perdue issued the following statement after the Senate passed the U.S.-Mexico-Canada Agreement (USMCA) by a bipartisan vote of 89 – 10.

“We’ve long waited for this day and now USMCA will finally head to the President’s desk,” Secretary Perdue said. “The passage of USMCA is great news for America’s farmers and ranchers. With Congressional consideration now complete, our farmers and ranchers are eager to see the President sign this legislation and begin reaping the benefits of this critical agreement. I thank President Trump and Ambassador Lighthizer for successfully delivering an improved and modern trade agreement and working so hard for the people of American agriculture to get this deal across the finish line.”

Background:
USMCA will advance United States agricultural interests in two of the most important markets for American farmers, ranchers, and agribusinesses. This high-standard agreement builds upon our existing markets to expand United States food and agricultural exports and support food processing and rural jobs.

Canada and Mexico are our first and second largest export markets for United States food and agricultural products, totaling more than $39.7 billion food and agricultural exports in 2018. These exports support more than 325,000 American jobs.

All food and agricultural products that have zero tariffs under the North American Free Trade Agreement (NAFTA) will remain at zero tariffs. Since the original NAFTA did not eliminate all tariffs on agricultural trade between the United States and Canada, the USMCA will create new market access opportunities for United States exports to Canada of dairy, poultry, and eggs, and in exchange the United States will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products.

Earlier this year, nearly 1,000 American food and agriculture associations and companies announced their support for USMCA and the National Association of State Departments of Agriculture signed a letter to Congressional leadership urging them to ratify USMCA.

In September, all former U.S. Secretaries of Agriculture since President Reagan’s Administration announced support for USMCA. In a letter to Congressional leaders, former Secretaries John Block (Reagan), Mike Espy (Clinton), Dan Glickman (Clinton), Ann Veneman (W. Bush), Mike Johanns (W. Bush), Ed Shafer (W. Bush), and Tom Vilsack (Obama) underscored the importance of passing USMCA saying, “We need a strong and reliable trade deal with our top two customers for U.S. agriculture products. USMCA will provide certainty in the North American market for the U.S. farm sector and rural economy. We strongly support ratification of USMCA.”

Key Provision: Increasing Dairy Market Access
    America’s dairy farmers will have expanded market opportunities in Canada for a wide variety of dairy products. Canada agreed to eliminate the unfair Class 6 and 7 milk pricing programs that allowed their farmers to undersell U.S. producers.

Key Provision: Biotechnology
    For the first time, the agreement specifically addresses agricultural biotechnology – including new technologies such as gene editing – to support innovation and reduce trade-distorting policies.

Key Provision: Geographical Indications
    The agreement institutes a more rigorous process for establishing geographical indicators and lays out additional factors to be considered in determining whether a term is a common name.

Key Provision: Sanitary/Phytosanitary Measures
    The three countries agree to strengthen disciplines for science-based measures that protect human, animal, and plant health while improving the flow of trade.

Key Provision: Poultry and Eggs
    U.S. poultry producers will have expanded access to Canada for chicken, turkey, and eggs.

Key Provision: Wheat
    Canada agrees to terminate its discriminatory wheat grading system, enabling U.S. growers to be more competitive.

Key Provision: Wine and Spirits
    The three countries agree to avoid technical barriers to trade through non-discrimination and transparency regarding sale, distribution, labeling, and certification of wine and distilled spirits.



Fischer Statement on Senate Passing USMCA

U.S. Senator Deb Fischer, a member of Senate Agriculture Committee, released the following statement today after the Senate passed the U.S.-Mexico-Canada Agreement (USMCA):

“Nebraska’s families, ag producers, and manufacturers depend on access to Canada and Mexico, our state’s two largest export markets. I am happy that Congress got this deal done and look forward to President Trump signing it, securing great opportunities for Nebraska.”

Nebraska Ag and Manufacturing Information:
-        In 2017, Nebraska sent nearly 900 million dollars of ag products to Mexico and nearly 450 million dollars of ag products to Canada

-        Agriculture trade between Canada and Mexico supports nearly 54,000 Nebraska jobs

-        The value of total Nebraska exports to Mexico and Canada in 2018 was $3.5 billion

-        More than 300 Nebraska manufacturing firms depend on exports to Mexico and Canada

-        In 2018, Nebraska exported $2.2 billion in manufacturing goods to Mexico and Canada



Sasse Statement on USMCA Passage

U.S. Senator Ben Sasse, an outspoken advocate for Nebraska agriculture and trade, issued the following statement on the passage of the USMCA in the Senate.

"The USMCA trade deal is a huge win for Nebraska agriculture. We've fought long and hard to get here. Nebraskans are tough and the past couple of years have been a hard slog. We don't give up. Our farmers and ranchers literally feed the world, and they do that through trade. This trade deal is going to help provide the stability to go strong. With the USMCA, our state is open for business. Nebraska is going to keep feeding the world."



Ricketts Applauds Senate Passage of USMCA

Today, Governor Pete Ricketts issued the following statement upon ratification of the U.S.-Mexico-Canada Agreement (USMCA) by the U.S. Senate.

“Today’s passage of USMCA by the U.S. Senate is a big victory for Nebraska and our ag producers,” said Gov. Ricketts.  “It ensures Nebraska will have the opportunity to grow our relationship with Canada and Mexico, two of the most important markets for our ag products.  I want to thank Senator Fischer, Senator Sasse, and our entire federal delegation for their successful work to deliver USCMA for our farmers and ranchers.”



Nebraska Farm Bureau Praises Senate for Passage of USMCASteve Nelson, President

“Nebraska Farm Bureau is pleased with the Senate approval of the United States-Mexico-Canada Agreement (USMCA). We especially want to thank Senators Fischer and Sasse for their work in moving this agreement forward. This is a victory for Nebraska agriculture and is more good news for farmers and ranchers who now can depend on access to these markets to sell their products.”

“This brings long-term stability to Nebraska agriculture markets with two of Nebraska’s most important trading partners. USMCA ensures Nebraska beef, pork, corn, and soybean producers will maintain essential access to Mexico and Canada markets that account for significant percentages of Nebraska’s overall international agricultural sales. USMCA also opens the door for greater purchases of Nebraska wheat, poultry, and dairy products, as well as modernizing other areas of this critical agreement.”  



Congress Ratifies USMCA: A Great Start to 2020 for Corn Farmers

Today Congress ratified the United States-Mexico-Canada Agreement (USMCA) allowing for free trade with our neighboring countries to the north and the south. The bill, which passed with broad support, will now go to President Trump’s desk for his signature. Mexico and Canada are the U.S. corn industry’s largest, most reliable market. In 2018/2019, 21.4 million metric tons of corn and corn co-products were exported to Mexico and Canada. These exports were valued at $4.56 billion. In 2018/2019, Mexico was the top export for U.S. corn and DDGS while Canada was the top export of U.S. ethanol.

“The United States is set up perfectly to trade with our neighbors to the north and south of us,” said Jim Greif Iowa Corn Growers Association (ICGA) President and farmer from Monticello. “The passage of the modernized agreement is a bright spot for corn farmers starting fresh in 2020 as exports are a key market for corn in all forms. Last year was tough for many farmers who faced an excess amount of challenges outside of our control. USMCA demonstrates the commitment for trade agreements for the United States, and ICGA will continue to work for the facilitation of free trade with partners around the world.”

ICGA extends a thank you to members and the Iowa Congressional leaders for their continued efforts to see USMCA to the finish line.



Naig Celebrates the Passing of the USMCA Trade Agreement

Iowa Secretary of Agriculture Mike Naig issued the following statement in response to the U.S. Senate’s vote to ratify the USMCA trade agreement.

“I want to thank President Trump for his commitment to negotiating better trade deals for America’s farmers,” said Secretary Naig. “This year, we’ve secured new agreements with Japan, China, Canada and Mexico — four of our largest trading partners — which gives producers greater market access for their products and a renewed sense of optimism heading into the 2020 growing season.”

    Full implementation of USCMA could increase U.S. agricultural exports by $2.2 billion, according to the U.S. International Trade Commission.

    Iowa exports to Canada in 2018, according to WISERTrade.
        $198 million of ethanol
        $137 million of animal feed
        $108 million of pork
        $7 million of beef
        $86 million of corn
        $44 million of soybeans

    Iowa exports to Mexico in 2018, according to WISERTrade.
        $15 million of ethanol
        $229 million of animal feed
        $112 million of pork
        $1 million of beef
        $546 million of corn
        $224 million of soybeans



Iowa Cattlemen Applaud USMCA

On January 16, the U.S. Senate passed the United States-Mexico-Canada Agreement, the final step before President Trump signs the trade bill. This news, along with Phase I of the Chinese trade deal, is welcome to cattle producers in Iowa. 

“USMCA has been a top priority for our association, and we are pleased with the Senate’s vote. We urge President Trump to sign the agreement as soon as possible, in order to provide more opportunity and certainty to Iowa’s farmers, and especially our beef producers,” says Matt Deppe, CEO of the Iowa Cattlemen’s Association.

As a whole, export markets add over $300 to the value of each head of cattle in Iowa, and Canada and Mexico are responsible for about $70 of that total.

Iowa’s 27,000 beef producers have enjoyed the benefits of the North American Free Trade Agreement over the past 25 years. NAFTA has provided duty-free trade with Canada and Mexico which adds gross value to the cattle that producers raise, feed and market in Iowa.

Mexico is especially important because of the demand for variety meats like tongue, tripe and heart. In the U.S., these cuts are nearly worthless. By exporting them, we are able to capture much greater value.

USMCA preserves the duty-free trade we have benefited from through NAFTA, and supports other agricultural commodities, as well. U.S. farmers export approximately $9.4 billion worth of products to Canada and Mexico annually. Of that total, $1.8 billion comes from the cattle industry and $3.2 billion is from corn and corn co-products.

The agreement was held up for several months as Democrats and Republicans sparred over labor, pharmaceuticals, and partisan politics. The Iowa Cattlemen’s Association has been aggressively advocating for Iowa’s senators and representatives to prioritize the needs of farmers in the state.

“I’d like to thank our board of directors and other members who have made phone calls, sent emails, and written letters to their congressional representatives over the past year. This trade agreement is proof that grassroots advocacy makes a difference,” says Deppe.



NCBA Hails Senate Ratification of USMCA

National Cattlemen’s Beef Association (NCBA) President Jennifer Houston issued the following statement regarding the U.S. Senate vote to ratify the U.S.-Mexico-Canada Agreement (USMCA):

"The ratification of USMCA is a crucial win for all U.S. beef producers and a reassurance that U.S. beef will continue to have unrestricted, duty-free access to Canada and Mexico. NCBA has been a strong supporter of USMCA since day one, and we believe that today’s vote sends a strong message to the rest of the world that the United States believes in free and fair trade. We are thankful to every Member of Congress in both House and Senate who voted for USMCA, and we thank President Trump for continuing to secure and defend strong market access for America’s cattlemen and cattlewomen.”



NPPC Applauds Senate for Overwhelmingly Approving USMCA

The U.S. Senate today overwhelmingly approved the U.S.-Mexico-Canada (USMCA) trade agreement, which, once implemented, will provide much-needed certainty for U.S. pork producers.

"Ratification of USMCA has been a top priority for the National Pork Producers Council (NPPC), and we thank members of the Senate who supported this critical trade deal," said NPPC President David Herring, a hog farmer from Lillington, N.C. "USMCA provides U.S. pork producers with certainty in two of our largest export markets. It received strong support in both chambers of Congress, and we look forward to seeing President Trump sign it into law."

In 2018, Canada and Mexico took more than 40 percent of the pork that was exported from the United States and a similar volume is expected in 2019. U.S. pork exports to Canada and Mexico support 16,000 U.S. jobs.

"We also appreciate the administration's work to establish a phase-one trade agreement with China," added Herring. "We urge China to eliminate all restrictions on U.S. pork exports at a time when they are struggling with food price inflation and need reliable, affordable sources of pork. Doing so would more than double annual U.S. pork sales, generate 184,000 new American jobs and reduce the overall trade deficit with China by nearly six percent, all within the next decade."



USMEF Statement on Senate Approval of USMCA

Today the U.S. Senate approved implementing legislation for the U.S.-Mexico-Canada Agreement (USMCA).

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:

The U.S. Senate moving quickly to approve USMCA reaffirms the United States' commitment to two key trading partners, both of which are very important destinations for U.S. pork, beef and lamb. USMEF applauds Congressional leaders and the Trump administration, especially the trade experts within USTR and USDA, for their tireless efforts to ratify USMCA, which bolsters our position as a reliable supplier to two leading markets that account for about one-third of all U.S. red meat exports. Shipments to Mexico and Canada in 2019 totaled about 1.25 million metric tons valued at $3.8 billion, and the U.S. red meat industry looks forward to many years of further growth.



U.S.-Mexico-Canada Reunited by USMCA!

Soy growers, other agriculture and business groups have rallied collectively for months to urge Congress to pass the “new NAFTA.” Today, on Jan.16, it happened! The American Soybean Association (ASA) expresses its strong appreciation to Senate leaders for passing the U.S.-Mexico-Canada Agreement (USMCA) by a overwhelming 89-10 vote. With passage through both congressional chambers, USMCA will now move to the president’s desk for signature. This final step will ensure soy growers maintain access to two of their top markets.

“ASA has worked throughout the year to encourage legislative support for USMCA, so we appreciate Congress working with the administration, coming together for this bipartisan effort, and getting USMCA to the final step,” said Bill Gordon. “In addition to securing the Mexican market as the second largest importer of U.S. soybeans, the terms agreed to by Canada will increase U.S. poultry and dairy exports, which is also a positive for our industry.”

Mexico is the #2 market for whole beans, meal and oil, and Canada is the #4 buyer of meal and #7 buyer of oil for U.S. soybean farmers, making the trade agreement essential to sustaining the growth realized in those two countries under the North American Free Trade Agreement (NAFTA). Under NAFTA, U.S. soybean sales to Mexico quadrupled and to Canada doubled.

Gordon concluded, “We express our gratitude to Congress for making USMCA passage a priority, as it means we can start 2020 on a more positive note.”



U.S. Dairy Industry Praises Administration and Congress for Final Passage of USMCA

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) cheered today’s Senate vote paving the way for the President’s signature of the United States-Mexico-Canada Agreement (USMCA).

Looking ahead, USDEC and NMPF urged U.S. officials to carefully monitor Canada and Mexico’s USMCA commitments once the trade deal takes effect to ensure its provisions are enforced accordingly so that the dairy industry is able to reap the full benefits of the agreement negotiated by Ambassador Lighthizer and the negotiating teams at USTR and USDA.

“USMCA makes important strides to break down trade barriers, opening the door to new opportunities and supporting the flow of high-quality American dairy products to two valuable export markets,” said Tom Vilsack, president and CEO of USDEC. “The strong enforcement measures included in the final agreement give officials the tools necessary to hold our trade partners accountable and ensure the gains secured by USMCA are completely realized. We are grateful to the Administration for the sizable accomplishments secured in USMCA on dairy. With this trade deal complete, negotiators can now turn their attention to other key markets around the world in order to gain further ground for U.S. dairy.”

“America’s dairy farmers are celebrating today’s bipartisan vote as a win. Under President Trump’s leadership, USTR and USDA negotiated an agreement that will deliver a more certain future for our dairy farmers and rural economy,” said Jim Mulhern, president and CEO of NMPF. “The U.S. must now remain diligent and proactively work with Canada and Mexico to implement USMCA in both letter and spirit. Full compliance is essential to achieving more fair trade with Canada and protecting American-made cheeses in Mexico.”

USMCA fundamentally changes Canada’s trade-distorting policies, reforms Canada’s controversial dairy pricing system and provides exclusive Canadian market access for U.S. farmers and manufacturers. According to the International Trade Commission, U.S. dairy exports are projected to increase by more than $314 million a year. USMCA also strengthens the relationship between Mexico and the U.S. and establishes new protections for products that rely on common cheese names, such as parmesan and feta.



NCGA Statement: Senate Passes USMCA

National Corn Growers Association President Kevin Ross today thanked members of the U.S. Senate for their bipartisan approval of the United States-Mexico-Canada Agreement (USMCA). Ross made the following statement.

“Nearly a year ago, NCGA’s farmer members, recognizing the importance of our trading relationship with Mexico and Canada, declared passage of USMCA their top legislative priority. Since that time, corn farmers have been using every opportunity to urge members of Congress to support the new trade agreement and we are incredibly thankful for the strong bipartisan support it has received in the Senate today.

“NCGA thanks the U.S. Senators who voted to ensure corn farmers will continue to have access to our largest and most reliable markets and is especially grateful for the leadership of Senate Finance Committee Chairman Chuck Grassley who has been a steadfast supporter of corn growers and committed to getting USMCA across the finish line.”



USMCA Clears the Way to Fire Up Ag’s Economic Engine

America’s farmers and ranchers received a second round of good news this week with Senate approval of the United States-Mexico-Canada Agreement (USMCA).  At a time when farmers continue to face strong economic headwinds, the agreement is expected to increase U.S. agriculture exports by $2 billion.

“This trade agreement comes at a critical time for farmers and ranchers, increasing optimism that we’ll turn the corner in 2020,” said American Farm Bureau President Zippy Duvall. “USMCA is an important step toward restoring the competitiveness of America’s farmers and ranchers, strengthening our trade relationships in North America and setting an example for agreements with other important trading partners.”

The USMCA is expected to result in a $65 billion increase in gross domestic product.  Canada will increase quotas on U.S. dairy products, benefitting American dairy farmers by $242 million.  Canada will also treat wheat imports the same as domestic wheat for grading and pricing.

“We commend President Trump, the House and the Senate for working together in a bipartisan manner to enhance these important trade relationships and help jumpstart our ag economy,” Duvall added. “Their leadership shows a dedication to protecting the livelihood of millions of Americans on the farm and throughout the food system.”

President Trump is expected to sign the USMCA soon, the final step to enacting the agreement.

The USMCA vote comes just one day after the United States signed a new trade agreement with China, which promises to increase agricultural exports overseas by tens of billions of dollars.

Duvall said, “USMCA, the China trade agreement, the recently enacted U.S.-Japan Trade Agreement, and the U.S.-South Korea Rice Agreement are moving us toward rebalancing the scales of international trade. It is important this trend continues as the U.S. negotiates agreements with other international trading partners. We’re making great strides in giving farmers and ranchers fair access to the global market again.”

Additional trade agreements worthy of attention include the U.S.-European Union negotiations, as well as an agreement with the United Kingdom as it leaves the European Union.



NFU Applauds Senate’s Passage of USMCA

The U.S. Senate today voted 89-10 in favor of the U.S.-Mexico-Canada Agreement (USMCA), moving the trilateral deal to President Donald Trump’s desk for final approval.

Though National Farmers Union (NFU) initially withheld endorsement when USMCA was introduced over a year ago, the organization’s board voted to support it after the U.S. House of Representatives made several improvements. NFU President Roger Johnson applauded the agreement’s passage and urged future improvements to American trade policy:

“For 25 years, National Farmers Union has stood in staunch opposition to the disastrous free trade framework established by NAFTA. By prioritizing the interests of corporations over those of working-class Americans, this framework is largely responsible for our massive trade deficit, the rapid exportation of domestic jobs, the decline of wages, and the deterioration of our national sovereignty.

“Though USMCA is not a perfect replacement, it does make some important changes to its predecessor. We are particularly encouraged by the inclusion of stronger labor standards, more robust enforcement mechanisms, and better environmental protections. On top of that, we are pleased to see the partial elimination of investor-state dispute settlement (ISDS) arbitration procedure, which is the source of many of our aforementioned grievances against NAFTA.

“That being said, there is still significant room for improvement. This trade deal still doesn’t restore commonsense Country-of-Origin-Labeling, nor does it address import dumping. With that in mind, we urge Congress and the Trump administration to continue working to strengthen trade deals so they better support the success of family farmers and rural communities.”



RFA Lauds Senate Passage of USMCA

The Renewable Fuels Association today thanked the U.S. Senate for passing the United States-Mexico-Canada Agreement (USMCA), a crucial trade pact that will benefit U.S. ethanol producers and rural economies across the nation. RFA President and CEO Geoff Cooper offered the following statement:

“America’s ethanol producers look forward to seeing this important agreement in place. Canada and Mexico are among our most important and reliable export markets for both ethanol and distillers grains, and we look forward to strengthening our trading relationship with the two countries. USMCA is a good deal for the U.S. ethanol industry, the farmers who support us, and our industry’s partners in Canada and Mexico. We thank President Trump and Congress for getting this done.”

Cooper said that, in 2019, Canada ranked second for ethanol exports from the United States, purchasing an estimated 22 percent of U.S. ethanol exports, and ranked in the Top 10 for distillers grains. Canada has imported more ethanol from the United States since 2012 than any other country in the world. Click here for more information.

Mexico was the top export market for U.S. distillers grains in 2019, importing 19 percent of all U.S. exports, and ranked in the Top 10 for ethanol exports.



 ACE: USMCA strengthens North American trade partner relationships and key ethanol market opportunities

Today, the U.S. Senate passed the U.S.-Mexico-Canada Agreement (USMCA), ratifying the North American Free Trade Agreement (NAFTA) replacement after it was advanced by the U.S. House of Representatives in December. The new agreement solidifies a multi-billion-dollar export market while providing more stable market access to farmers and instilling confidence in other nations that the U.S. is a reliable partner and supplier to help U.S. agriculture remain competitive in the years ahead. ACE CEO Brian Jennings released the following statement in response to today’s announcement:

“Passage of the USMCA in Congress is welcome news to America’s farmers. NAFTA has been a success for American agriculture and the USMCA builds upon this successful trading relationship. Over the past 20 years, U.S. agricultural exports to Canada have tripled and quintupled to Mexico. For U.S. corn, Mexico and Canada have served as the industry’s largest and most reliable markets, and this agreement keeps the door open for related commodities, like ethanol and distillers grains. Although USMCA doesn’t set ethanol-specific trade provisions, its ratification positively reaffirms this long-standing relationship with markets next door as we enter into this new decade of market growth.”



NGFA commends ratification of USMCA agreement

The National Grain and Feed Association (NGFA) commended Congress for ratifying the U.S.-Mexico-Canada Agreement (USMCA) after the Senate approved the trade deal on Jan. 16 by an overwhelming 89-10 vote.

“The USMCA is a tremendous positive for the United States and the entire North American region and our interdependent economies,” said NGFA President and CEO Randy Gordon. “Having a sound and competitive free trade agreement with Mexico and Canada is critical to continued economic growth and job creation in the United States and the North American region. The USMCA preserves or expands upon critical market access for U.S. agricultural products in the North American market, improves the process for resolving non-technical barriers to trade and provides a 21st century blueprint for future trade agreements.

“We particularly appreciate the dedication and persistence of U.S. Trade Representative Robert Lighthizer and U.S. lawmakers for their commitment to finalizing and ratifying USMCA. We also commend the governments of two of our most important trading partners – Mexico and Canada – in working with the United States to address and resolve issues throughout the negotiation process.”

The USMCA trade agreement will preserve or expand upon critical market access for U.S. agricultural products in the North American market. In addition to maintaining a tariff-free environment for most agricultural goods, USMCA also will help address non-tariff barriers, which are paramount among the current global challenges that distort and slow cross-border trade flows. Among other benefits, USMCA will: Facilitate cross-border trade flows through higher levels of regulatory coherence and cooperation; implement timelines and notifications for adverse import checks; include steps to reduce the likelihood of trade disruptions in products of agricultural biotechnology; use technical consultations for sanitary and phytosanitary (SPS) disputes; and require that SPS standards be grounded in science and based on proper risk assessments and implemented using accepted risk management techniques. Read more about USMCA here.

The agreement now goes to President Trump for his signature. Mexico’s legislature already has passed USMCA, and the Canadian Parliament is expected to approve the accord in late January or early February. The agreement takes effect 90 days after all three countries approve it, meaning it likely will go into force sometime in May.



NSP Commends Senate Passage of USMCA

National Sorghum Producers Chairman Dan Atkisson, a sorghum farmer from Stockton, Kansas, made the following statement today after the U.S.-Mexico-Canada Agreement passed the U.S. Senate.

"We commend President Trump, the Office of the U.S. Trade Representative and our congressional leaders for their hard work to bring this agreement across the finish line. USMCA passage provides a trade win for U.S. agriculture producers and an added level of certainty as we head into the 2020 growing season. Mexico is our closest trade partner to the south, and we have enjoyed commerce with the feed and food industries there for a very long time. We anticipate the President’s signature on this agreement next week and are hopeful for passage by Canada so it may be enacted as soon as possible.”



U.S. Wheat Industry Applauds Senate for Passing the U.S. Mexico-Canada Agreement

The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) applaud the U.S. Senate for passing the U.S.-Mexico-Canada Agreement (USMCA) today.

  “Trade deals can put the price of wheat back on track for many growers and create new opportunities for many farmers,” said NAWG President and Lavon, Tex., farmer Ben Scholz. “NAWG applauds the U.S. Senate for moving quickly on passing USMCA out of the Chamber.”

“Mexico continues to be our top importing country,” said USW Chairman and Paulding, Ohio, farmer Doug Goyings. “Wheat farmers are relieved to see the agreement moving on to the President and I think the Mexican millers who want our wheat are relieved, too.”

USMCA retains tariff-free access to imported U.S. wheat for those long-time flour milling customers in Mexico, a crucial step toward rebuilding trust in the U.S. 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 Canadian border by allowing U.S. varieties registered in Canada to receive reciprocal grading treatment. 

Other measures that benefit the wheat industry include the Agreement’s language around agricultural biotechnology which supports 21st Century innovations in agriculture and new language to strengthen disciplines for science-based SPS measures.