NEBRASKA EXTENSION WEED SCIENCE SCHOOL IS JAN. 29
Growers, crop consultants and educators are encouraged to attend Nebraska Extension Weed Science School from 8:30 a.m. to 3:45 p.m. Jan. 29 at the Eastern Nebraska Research and Extension Center near Mead.
The Weed Science School is a one-day seminar covering numerous topics. The morning session will cover herbicide-resistant weeds in Nebraska; dicamba off-target movement; and industry mergers and their impact on herbicide discovery. The afternoon session will cover nozzle selection and management of herbicide drift; corn-ear formation issues; management of herbicide-resistant water hemp; and soybean response to 2,4-D or dicamba.
Certified Crop Advisor credits and pesticide recertification are available.
There is no cost to attend, but participants are asked to register at http://agronomy.unl.edu/weedscienceschool.
Ricketts: Tax Receipt Growth Means Property Tax Relief Ahead
Today, Governor Pete Ricketts issued a statement following news that state general fund tax receipts for December were $52 million ahead of forecast, or 12.2 percent above projections.
“Another strong month of growth in tax revenues reflects Nebraska’s strong economic growth over the past year,” said Governor Ricketts. “I will continue to work with the Legislature to control spending, so we can deliver additional property tax relief for Nebraska’s farmers, ranchers, homeowners, and businesses this legislative session.”
“GOOD FARMER TO GREAT MANAGER” RECORD-KEEPING CLASS COMING TO YORK JAN. 23-24
The difference between a good farmer and a great manager often comes down to knowing the true financial position of a farm. Good records make it possible to track an operation’s true financial position. Inaccurate records can lead to misguided management decisions.
Nebraska Extension’s “Good Farmer to Great Manager” record-keeping classes will teach farmers and ranchers to keep accurate records for their operations. The two-part class will be held in York on Jan. 23, 1-5 p.m., and Jan. 24, 8 a.m.-noon, at the York County Fairgrounds 4-H Building, 2400 N. Nebraska Ave.
The course fee is $50 per person and class size is limited to 25 people. Register online at https://wia.unl.edu/GFGM.
Keeping good records is less about using a certain software and more about gathering and organizing information, according to Tina Barrett, course instructor and executive director of Nebraska Farm Business Inc.
“In this class, you will learn about what information you should have easily available as part of your farm or ranch records. When you have good records, everything from tax preparation, annual loan renewals, and financial analysis become much easier,” she said. “More importantly, it will allow you to make financial management decisions that improve your business.”
Topics Include:
· What are Good Records?
· Getting Good Tax Records
· Moving to Management Records
· Financial Statements & Ratios
This course hosted by Nebraska Extension and is inspired by Annie's Project. Annie's Project is supported by Farm Credit Services of America in Nebraska.
Bomgaars family donates to Northeast campaign citing future of agriculture in the region
Agriculture and youth are important to the Bomgaars family, and those priorities are why the family is investing in the Nexus project at Northeast Community College in Norfolk.
Aaron Bomgaars, vice president/property management/store development at Bomgaars Supply Inc., has announced that the company will contribute $50,000 to the project to build new ag facilities at Northeast.
“Agriculture is the foundation of the economy of the Midwest states served by Bomgaars,” he said. “And the future of agriculture is the future of Bomgaars.”
Bomgaars Supply Inc. is a family-owned retail chain of farm and ranch supply stores headquartered in Sioux City, IA. Bomgaars serves customers in Colorado, Idaho, Iowa, Minnesota, Nebraska, South Dakota, and Wyoming. Bomgaars stores can be found in 10 communities in the 20 county area served by Northeast Community College.
Bomgaars said his family is excited to be part of the Nexus project.
“Northeast is training students to be the next generation of farmers and ranchers. Those students will become the future residents of the small rural communities where Bomgaars stores are located. These new ag facilities at Northeast will attract more students who will help local communities grow and thrive.”
“At Northeast Community College, we share the Bomgaars family’s support of agriculture and youth,” said Dr. Tracy Kruse, associate vice president of development and external affairs, and executive director of the Northeast Foundation. “Each year, 350 students enroll in agricultural classes at Northeast, making it the single largest program of study on the campus.”
Kruse said Northeast grants more associate degrees in agriculture than any other college in Nebraska and the eighth most two-year degrees in agriculture in the nation.
“We have an excellent faculty and outstanding programming. We are now trying to bring the ag facilities up to that same standard,” she said.
Funding for the $23 million Agriculture & Water Center for Excellence project is currently being solicited to enhance and expand the agriculture facilities at the College. In addition to Northeast’s commitment of $10 million, the institution is seeking at least $13 million in private funds to begin the initial phase of construction, which includes a new veterinary technology clinic and classrooms, a new farm site with large animal handling facility and other farm structures for livestock operations, a farm office and storage. The new facilities will be located near the Chuck M. Pohlman Ag Complex on E. Benjamin Ave. in Norfolk.
In August, the Acklie Charitable Foundation (ACF) announced a $5 million lead gift to the Nexus project. ACF was founded by the late Duane Acklie and Phyllis Acklie, both Madison County natives and graduates of Norfolk Junior College, a predecessor institution of Northeast Community College.
Chase County Teacher Named Teacher of the Year for Bringing Agriculture into the Classroom
The Nebraska Farm Bureau Foundation has selected Arlys Cupp for the 2020 Nebraska Agriculture in the Classroom Teacher of the Year honor. The Teacher of the Year is awarded to outstanding teachers that incorporate agriculture into their classroom through innovative ideas and lessons.
Arlys Cupp, a second-grade teacher at Chase County Schools in Imperial, was honored at a surprise ceremony at the school on Jan. 13.
“The Nebraska Farm Bureau Foundation is pleased to honor Arlys Cupp, a teacher who demonstrates a strong connection between core classroom learning and agriculture all year in the classroom,” said Courtney Schaardt, director of outreach education. “She creatively incorporates lessons and activities that help students understand that agriculture is their source of food, fiber, and fuel.”
Cupp has been a teacher in Southwestern Nebraska for 35 years. Throughout those years, she has continuously incorporated agriculture into her curriculum. Cupp uses many ways to connect learning and agriculture into core subject areas like language arts, math, social studies, and science.
Cupp’s classroom uses Nebraska Agriculture in the Classroom resources to help the students learn and understand that agriculture is part of their lives every day. From the food they eat to the clothes they wear, agriculture is all around them.
One of Cupp’s favorite programs is the Ag Pen Pal program. Her classroom partners with a rancher in the sandhills who has a cattle operation. The classroom and the pen pal write letters to each other throughout the school year. Their pen pal shows them the importance of cattle being produced to feed the population and how crops are produced and harvested in our state.
“Letter writing skills are taught and improved while the students learn about agriculture in Nebraska,” said Cupp. “The friendships and relationships developed are personal and create a real-life connection to agriculture for the students.”
Cupp uses many of the accurate agriculture books that the Nebraska Farm Bureau Foundation recommends in her language arts class. One of her favorites is First Peas to the Table by Susan Grigsby. The book is based on a contest that Thomas Jefferson held with his friends and neighbors every year. The book integrates school gardens, history, and seasonal weather themes into a fun-to read book. Cupp developed an hour-long lesson to go with the book where the students learn about Thomas Jefferson, farming throughout history, and modern-day agriculture.
“After we read the book, each student received a package of peas to plant at home,” said Cupp. “I received pictures all summer long of the pea plants and produce the students grew to eat with their families.”
Cupp is also involved with 4-H and FFA. Cupp has been a 4-H leader for 26 years and has lead projects in the areas of livestock, vet science, gardening, cooking, S.T.E.M, and communications. She enjoys watching the children explore and excel in agriculture related areas while challenging them to further their knowledge and expand their projects.
On her own farm, Cupp grows 2.5 acres of pumpkins and has a corn maze and pumpkin patch that is open to the public on the weekends. She enjoys being able to incorporate Farm Bureau’s companion resources as part of the unit she teaches on pumpkins. Each Christmas her classroom sends hand-painted, dried gourds to their Ag Pen Pal.
“I feel so privileged to be able to teach my students about the generations before us and their agriculture practices,” said Cupp. “Many of my students have grown into individuals with successful agriculture careers. I’m so lucky that I get to be a part of what interests them in agriculture at such an early age.”
Cupp will receive an expense-paid trip to the National Agriculture in the Classroom Conference, an accurate agriculture book bundle featuring 12 books and corresponding literature guides, and a $250 cash prize. The conference, held June 23-26 in Salt Lake City, UT, brings educators together from all over the United States to learn how to use agricultural concepts to effectively teach core subjects such as reading, math, science, and social studies. The conference features recognition for Teacher of the Year honorees, educational workshops, traveling workshops to agribusinesses and research facilities, and farm tours.
With Fischer’s Support, USMCA Advances Out of Senate Commerce Committee
At today’s Senate Commerce Committee hearing, U.S. Senator Deb Fischer (R-Neb.) voted to advance the United States-Mexico-Canada Agreement (USMCA). The agreement passed the committee by a bipartisan vote. The full Senate is expected to vote on the agreement tomorrow, sending it to President Trump’s desk for signature.
Senator Fischer spoke on the importance of the agreement to Nebraska families, ag producers, manufacturers, and businesses.
Senator Fischer’s full remarks:
“Mr. Chairman, and fellow members of the committee:
“When I travel across Nebraska, I hear directly from our families, ag producers, manufacturers, and businesses about how important the passage of the U.S.-Mexico-Canada Agreement would be.
“Let me explain specifically how this deal brings economic certainty to our state.
“Agriculture is the economic engine of Nebraska, and the USMCA is critical for farmers and ranchers.
“Currently, Canada and Mexico receive 44 percent of Nebraska’s total exports.
“In 2017 alone, our state 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 jobs in Nebraska.
“Importantly, the USMCA maintains and strengthens markets for corn and soybeans.
“It also allows U.S. beef producers to continue to grow their exports to Mexico – which have risen 800 percent since NAFTA was first ratified.
“In 2018 alone, Nebraska exported over 250 million dollars of beef to both countries.
“According to Nebraska Department of Agriculture reports, our state’s 6.4 billion dollars in agricultural exports in 2017 led to nearly 8.2 billion dollars in additional economic activity in our state.
“But let’s not forget that the benefits of the USMCA extend far beyond our farm and ranchland.
“Nebraska’s manufacturers rely on America’s neighbors to the north and south, and a modernized trade deal means good-paying manufacturing jobs for our state.
“More than 300 Nebraska manufacturing firms depend on exports to Canada and Mexico.
“These manufacturing jobs tend to be full-time, pay high wages, and offer major opportunities for workers.
“In 2018, Nebraska exported $6.5 billion in manufacturing goods to the world—and $2.2 billion of that went to Mexico and Canada.
“The USMCA represents a bipartisan agreement that will benefit Nebraska families and all of the American people.
“It’s high time to unite around this common-sense trade deal and push the USMCA over the finish line.”
ISU Extension Workshops to Focus on Maximum Return for Fertilizer Dollars
The cost of managing soil fertility in Iowa continues to change, with increased fertilizer input costs and a rising demand for nutrients from higher-yielding crops.
To help producers maximize profits, Iowa State University Extension and Outreach is hosting 17 workshops from the end of January through March called Soil Testing Interpretations and Recommendations: Maximizing Return on Investment.
ISU Extension and Outreach field agronomist Josh Michel said the workshops will lead farmers through the basics of soil testing, analytical tests, calculating crop nutrient removal, understanding return on investment from fertilizer applications, how crop response correlates to soil test levels and what is known about crop response to micronutrients.
“These workshops provide producers the skills to best allocate fertilizer input dollars on their farms,” said Virgil Schmitt, field agronomist with ISU Extension and Outreach. “Producers are already thinking about next year’s fertility decisions.”
The workshops are designed to help farmers understand their current soil nutrient situation, the amount their crops are using in a growing season and what needs to be added, said Rebecca Vittetoe, another ISU Extension and Outreach field agronomist, who will be presenting.
2020 Soil Fertility Workshops
Jan. 22, Woolstock Community Building (104 McArthur St.), 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Jan. 17. Enrollment is limited to 30. Call the ISU Extension and Outreach Wright County Office at 515-532-3453 or the ISU Extension and Outreach Hamilton County Office at 515-832-9597.
Jan. 28, ISU Extension and Outreach Madison County Office, 9 a.m. to 12:30 p.m. Registration is $20 per person and pre-registration is required by Jan. 24. Enrollment is limited to 30. Call the Madison County office at 515-462-1001. Meeting sponsored by the Iowa Farm Bureau.
Jan. 29, ISU Extension and Outreach Humboldt County Office, 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Jan. 24. Enrollment is limited to 30. Call the Humboldt County office at 515-332-2201 or the ISU Extension and Outreach Pocahontas County Office at 712-335-3103.
Jan. 31, Jefferson County Activities Building, 9 a.m. to 12:30 p.m. Registration is $10 per person and pre-registration is required by Jan. 29. Enrollment is limited to 30. Call the ISU Extension and Outreach Jefferson County Office at 641-472-4166. Meeting sponsored by Libertyville Savings Bank.
Feb. 4, ISU Extension and Outreach Mitchell County Office, 1-4:30 p.m., with lunch served at 12:15 p.m. Registration is $40 per person and pre-registration is required by Jan. 28. Enrollment is limited to 30. Call the Mitchell County office at 641-732-5574.
Feb. 7, Poweshiek Water Association, Brooklyn, 9 a.m. to 12:30 p.m. Registration is $10 per person and pre-registration is required by Feb. 5. There is no registration cost for Corn Grower Members, but RSVP by Feb. 5. Enrollment is limited to 30. Call the ISU Extension and Outreach Poweshiek County Office at 641-623-5188. Meeting sponsored by Iowa Corn Growers.
Feb. 13, ISU Extension and Outreach Jones County Office, 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Feb. 11. Enrollment is limited to 30. Call the Jones County office at 319-465-3224.
Feb. 13, ISU Extension and Outreach Ringgold County Office, 1 p.m. to 3 p.m. There is no registration fee, but for questions or to RSVP, call the Ringgold County office at 641-464-3333.
Feb. 18, ISU Extension and Outreach Bremer County Office, 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Feb. 14. Enrollment is limited to 30. Call the Bremer County office at 319-465-3224.
Feb. 19, Heartland Community Room in Gowrie (1201 Market St., Gowrie), 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Feb. 14. Enrollment is limited to 30. Call the ISU Extension and Outreach Webster County Office at 515-576-2119 or the Calhoun County office at 712-297-8611.
Feb. 19, ISU Extension and Outreach Adair Office, 10 a.m. to noon. There is no registration fee, but for questions or to RSVP, call the Adair County office at 641-743-8412.
Feb. 20, Western Iowa Research Farm near Castana in Monona County, 9 a.m. to 1 p.m. Registration is $40 per person and pre-registration is required by Feb. 14. Enrollment is limited to 25. Call the ISU Extension and Outreach Monona County Office at 712-423-2175.
Feb. 21, ISU Extension and Outreach Marion County Office, 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Feb. 19. Enrollment is limited to 30. Call the Marion County office at 641-842-2014. Meeting is sponsored by the Iowa Corn Growers.
Feb. 27, Southeast Research and Demonstration Farm near Crawfordsville, 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Feb. 25. Enrollment is limited to 30. Call the ISU Extension and Outreach Washington County Office at 319-653-4811.
Feb. 28, ISU Extension and Outreach Black Hawk County Office, 9 a.m. to 12:30 p.m. Registration is $40 per person and pre-registration is required by Feb. 26. Enrollment is limited to 30. Call the Black Hawk County office at 319-234-6811.
Feb. 28, ISU Extension and Outreach Cass County Office, 10 a.m. to noon. There is no registration fee, but for questions or to RSVP, call the Cass County office at 712-243-1132.
March 13, ISU Extension and Outreach Plymouth County Office – Le Mars Convention Center, Board Room, 9 a.m. to 1 p.m. Registration is $40 per person and pre-registration is required by March. 9. Enrollment is limited to 25. Call the Plymouth County office at 712-546-7835.
Enrollment size is limited and registration is required. Registrants should contact their ISU Extension and Outreach county office or the site location they wish to attend. Fees can be paid the day of the workshop. Registration for each event includes publications, copies of presentations and brunch or lunch, if provided.
For more information or if you have questions, contact your local extension field agronomist.
Property Taxes, Veterinarians Among IFBF 2020 Priorities
Members of the Iowa Farm Bureau Federation (IFBF), Iowa's largest grassroots farm organization, will focus their 2020 legislative lobbying strength on issues most important to members, including protecting property taxpayers.
"Our members across Iowa have clearly stated that protecting property taxpayers should be a key focus during the 2020 legislative session," says Craig Hill, IFBF president and Warren County farmer. "Property taxes have more than doubled in the past 18 years, and the average property tax bill on 500 acres of farmland in Iowa is now approximately $13,000."
Iowa Farm Bureau members have developed policy stating that property taxes should be used to fund essential property services, while the state budget should be used to pay for services for citizens, such as mental health. "Now is the time to transition to an equitable funding source, and have the state assume the costs of the mental health system," said Hill.
Iowa farmers are committed to responsible livestock care, and that entails a close working relationship with their veterinarian. Farm Bureau members will work with lawmakers to develop programs that help ensure the future availability of private practice food animal veterinarians. Some of those programs could include a state-based student loan forgiveness plan, economic development incentives for rural vet clinics, mentorship, transition tax incentive for retiring vets or other programs.
"Raising livestock is a vital part of Iowa's economy, so maintaining an adequate supply of food animal vets is essential," Hill said.
Farm Bureau will also work with lawmakers to develop a driver's permit, similar to a school permit available to youth at age 14 and a half, to independently drive a vehicle for farm work. The farm driving permit would mimic several other states, providing important efficiencies for Iowa family farms.
Supporting conservation and water quality efforts through the Iowa Nutrient Reduction Strategy remains a Farm Bureau focus. "Iowa farmers have proven over the years that they are willing and able to continue to advance conservation if funding and sensible state and federal cost-share programs are available," said Hill.
Deadline to Sign Up for Cover Crop Insurance Discounts Extended to January 31
Iowa Secretary of Agriculture Mike Naig has extended the deadline for farmers who planted fall cover crops to sign up for a $5 per acre reduction on their 2020 crop insurance premiums. Farmers and landowners now have through January 31 to sign up online at apply.cleanwateriowa.org.
Fall 2019 cover crop acres enrolled in other state or federal cover crop cost-share programs are not eligible. Farmers who received prevent plant payments in 2019 are still eligible for the discounted insurance premiums.
The insurance premium reductions will be available for fall-planted cover crops with a spring-planted cash crop. Some insurance policies may be excluded, like Whole-Farm Revenue Protection, or those covered through written agreements. Participants must follow all existing farming practices required by their policy and work with their insurance agents to maintain eligibility.
For questions regarding the application process, call 515-281-5851 or email covercropdemo@iowaagriculture.gov.
This is a joint, three-year demonstration project administered by the Iowa Department of Agriculture and Land Stewardship and USDA Risk Management Agency (RMA) aimed at increasing the use of cover crops in Iowa. More than 1,200 farmers have applied for this program and planted 300,000 acres of cover crops in the past two years.
Farmers are encouraged to visit their local USDA service center offices to learn more about other cost-share funding available to support the implementation of conservation practices.
FSA Encourages Producers to Enroll Soon in Agriculture Risk Loss and Price Loss Coverage Programs
USDA’s Farm Service Agency (FSA) encourages agricultural producers to enroll now in the Agriculture Risk Loss (ARC) and Price Loss Coverage (PLC) programs. March 15, 2020 is the enrollment deadline for the 2019 crop year.
Although more than 200,000 producers have enrolled to date, FSA anticipates 1.5 million producers will enroll for ARC and PLC. By enrolling soon, producers can beat the rush as the deadline nears.
“FSA offices have multiple programs competing for the time and attention of our staff. Because of the importance and complexities of the ARC and PLC programs; and to ensure we meet your program delivery expectations, please do not wait to start the enrollment process,” said FSA Administrator Richard Fordyce. “I cannot emphasize enough the need to begin the program election and enrollment process now. Please call your FSA county office and make an appointment soon to ensure your elections are made and contracts signed well ahead of the deadlines.”
ARC and PLC provide financial protections to farmers from substantial drops in crop prices or revenues and are vital economic safety nets for most American farms.
The programs cover the following commodities: barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.
Until March 15, producers who have not yet enrolled in ARC or PLC for 2019 can enroll for both 2019 and 2020 during the same visit to an FSA county office unless yield updates are requested. Additionally, farm owners have a one-time opportunity to update PLC payment yields that take effect beginning with crop year 2020. If the owner accompanies the producer to the office, the yield update and enrollments may be completed during the same office visit.
Urea Leads Retail Fertilizer Prices Lower in New Year
Retail fertilizer prices tracked by DTN for the first full week of 2020 show the trend of lower prices persisting into the new year.
For the second straight week, seven of the eight major fertilizers had lower prices compared to a month earlier. Only urea was down a noteworthy amount, about 6%, compared to last month and had an average price of $358 per ton, down $22/ton. DTN considers a price move of 5% or more to be significant.
Six fertilizers had slight price declines from the previous month. DAP had an average price of $435/ton, down $10/ton; MAP $444/ton, down $19/ton; potash $375/ton, down $3/ton; anhydrous $486/ton, down $3/ton; UAN28 $237/ton, down $4/ton; and UAN32 $272/ton, down $4/ton.
The remaining fertilizer, 10-34-0, had a negligible price increase compared to last month. The starter fertilizer had an average price of $471/ton, up $1/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.43/lb.N.
Retail fertilizers are mixed in price from a year ago. MAP is 17% lower, anhydrous is 15% less expensive, DAP is 14% lower, urea is 12% less expensive, UAN28 is 11% lower, UAN32 is 10% less expensive and potash is 2% less expensive from last year at this time. In addition, 10-34-0 is 2% higher compared to last year.
Weekly Ethanol Production for 1/10/2020
According to EIA data analyzed by the Renewable Fuels Association for the week ending Jan. 10, ethanol production expanded by 33,000 barrels per day (b/d), or 3.1%, to 1.095 million b/d—equivalent to 45.99 million gallons daily and the largest volume since June 2019. The four-week average ethanol production rate rose 0.7% to 1.077 million b/d, equivalent to an annualized rate of 16.51 billion gallons.
Ethanol stocks grew 2.4% to a 15-week high of 23.0 million barrels. However, inventories were 1.5% lower than the same week last year. Stocks built sharply in the Gulf Coast (PADD 3), the primary region from which ethanol is exported, with smaller increases in the East Coast (PADD 1) and Rocky Mountain (PADD 4) regions.
Imports of ethanol arriving into the West Coast were 25,000 b/d, or 7.35 million gallons for the week. This is the first time in five weeks that imports were logged. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of November 2019.)
The volume of gasoline supplied to the U.S. market bounced back from the prior week, up 5.2% to 8.558 million b/d (359.44 million gallons per day, or 131.19 bg annualized). Refiner/blender net inputs of ethanol followed, increasing 6.6% to 854,000 b/d—equivalent to 13.09 bg annualized.
Expressed as a percentage of daily gasoline demand, daily ethanol production declined to 12.80%.
Brazil's Soybean Crop Poised to Break Another Record
Brazilian soybean production in 2019-20 crop year is forecast at 123.9 million mt, up 1.4% from December estimate due to better yield expectation, agricultural consultancy AgRural said Monday.
According to SP Globa, the soybean yield was expected to rise 4% year on year to 3.32 mt a hectare on sufficient rainfall across the region in the past few weeks, Brazilian national crop agency Conab said in its latest report.
The country's soybean harvest has reached 0.4% of the projected 2019-20 area as of January 9, Agrural said. The current harvest pace is 1.7 percentage point slower year on year and 0.3 points lower than the five-year average, it added.
AgRural estimates that Brazil will plant soybeans on 36.4 million ha in the 2019-20 crop year, which started from September 1, up 1.6% year on year.
Under normal weather conditions soybean planting across Brazil starts in mid-September but dry weather in September 2019 delayed planting by a couple of weeks. As a result, the harvest pace is lagging behind year on year, Conab said.
The USDA forecasts Brazil -- the world's largest soybean producer and exporter -- will export 76 million mt of beans in the 2019-20 marketing year, up 1% year on year.
Canadian auctioneer wins World Livestock Auctioneer Championship qualifier
Dean Edge, Rimbey, Alta., was named Champion at the 2020 World Livestock Auctioneer Championship (WLAC) Midwestern Regional Qualifying Event. Stockmen’s Livestock, Inc., Yankton, S.D., hosted the final of three WLAC qualifying events on Wednesday, January 8. A total of 31 contestants competed for a top ten placing, granting them a spot in the 2020 WLAC Semi-Finals at Dickson Regional Livestock Center, Inc. in Dickson, Tenn.
Edge, who has competed off and on since 2002, was Reserve at the 2019 WLAC Championship and made Top 10 in 2018. He says the win gives him a boost of confidence going into the 2020 WLAC contest.
“I can now go into June knowing that I can place at the top,” Edge says. “The other qualifiers were tough, and I know the competition is high, but I believe I have a good shot of being at the top.”
Edge was introduced to livestock auctioneering through a high school instructor who would auctioneer during class time. Interested in the profession, Edge attended auctioneering school at Western College of Auctioneering in 1999 and began working as an auctioneer at the Vold, Jones & Vold Auction in Rimbey, Alta., upon graduation.
“I worked hard at it,” Edge says. “I came by it fairly easy, but I had a lot of support from friends and family who were connected to the livestock marketing industry.”
Edge says the competition allows him to further enhance his skillset and serve his community members.
“I compete because I have a competitive nature, but this competition makes me a better auctioneer and livestock marketer. I get to go home with the experience of seeing different ways to auctioneer and market livestock. I think it provides an advantage to my producers as I become more experienced.”
Although his sights are set on obtaining the 2020 title, Edge believes his most rewarding experiences as an auctioneer don’t come from a contest win.
“When a customer comes up and thanks you for working so hard for them, you feel as though you are the one getting the check. It keeps me going.”
Edge was sponsored by Vold, Jones & Vold Auction Co. LTD, Rimbey, Alta.
The contest includes a live cattle sale with actual bidders in the seats. Contestants were judged on the clarity and quality of their auction chant; auctioneer presentation; ability to catch bids and conduct the sale; and how likely the judge would be to hire the auctioneer. Judges for each qualifying event are livestock market owners, managers, dealers and/or allied industry members from across the United States.
Also making a great showing were Reserve Champion Leon Caselman, Long Lane, Mo. and Runner-Up Curtis Wetovick, Fullerton, Neb. The remaining contestants who earned a top ten finish are Troy Bradshaw, Lipan, Texas; Dakota Davis, Waukomis, Okla.; Brandon Hamel, Damar, Kan.; Justin Mebane, Bakersfield, Calif.; Daniel Mitchell, Cumberland, Ohio; Chris Pinard, Swainsboro, Ga.; and Zack Zumstein, Marsing, Idaho. The Top Rookie Award went to Mike Witten, Trenton, Mo.
Other contestants who competed are Frederick Bodnarus, Saskatoon, Sask.; Albert Carroll, Downeyville, Ont.; Collin Gibbs, Miles City, Mont.; Patrick Greenleaf, Wilmore, Kan.; Seth Harvey, Jackson, Ga.; Brett Heath, Colome, S.D.; Jacob Hills, Ridgeway, Wis.; Jake Hopwood, Valentine, Neb.; Kent Korte, Metropolis, Ill.; Ed Leist, Petoskey, Mich.; Curt Littau, Carter, S.D.; Kyle Mueller, Bloomington, Wis.; Clayton Neumann, Bigfoot, Texas; Mark Oberholtzer, Loyal, Wis.; Jim Settle, Arroyo Grande, Calif.; Jeff Showalter, Broadway, Va.; Ryan Siecke, Creighton, Neb.; Robert Strickler, Banco, Va.; Marshal Tingle, Nicolasville, Ky.; and Brad Veurink, Corsica, S.D..
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China Phase I Deal is a Bonanza for American Agriculture
U.S. Secretary Perdue issued the following statement after President Donald J. Trump signed the historic Phase One Trade Agreement between the United States and China:
“This agreement is proof President Trump’s negotiating strategy is working. While it took China a long time to realize President Trump was serious, this China Phase I Deal is a huge success for the entire economy. This agreement finally levels the playing field for U.S. agriculture and will be a bonanza for America’s farmers, ranchers, and producers,” said Secretary Perdue. “China has not played by the rules for too long, and I thank President Trump for standing up to their unfair trading practices and for putting America first. We look forward to exporting to Chinese customers hungry for American products.”
Background:
The United States and China have reached an historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange. The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years. Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. The United States has agreed to modify its Section 301 tariff actions in a significant way.
Information on specific chapters of the Phase One agreement is provided below:
Agriculture: The Agriculture Chapter addresses structural barriers to trade and will support a dramatic expansion of U.S. food, agriculture and seafood product exports, increasing American farm and fishery income, generating more rural economic activity, and promoting job growth. A multitude of non-tariff barriers to U.S. agriculture and seafood products are addressed, including for meat, poultry, seafood, rice, dairy, infant formula, horticultural products, animal feed and feed additives, pet food, and products of agriculture biotechnology.
Intellectual Property: The Intellectual Property (IP) chapter addresses numerous longstanding concerns in the areas of trade secrets, pharmaceutical-related intellectual property, geographical indications, trademarks, and enforcement against pirated and counterfeit goods.
Technology Transfer: The Technology Transfer chapter sets out binding and enforceable obligations to address several of the unfair technology transfer practices of China that were identified in USTR’s Section 301 investigation. For the first time in any trade agreement, China has agreed to end its long-standing practice of forcing or pressuring foreign companies to transfer their technology to Chinese companies as a condition for obtaining market access, administrative approvals, or receiving advantages from the government. China also commits to provide transparency, fairness, and due process in administrative proceedings and to have technology transfer and licensing take place on market terms. Separately, China further commits to refrain from directing or supporting outbound investments aimed at acquiring foreign technology pursuant to industrial plans that create distortion.
Financial Services: The Financial Services chapter addresses a number of longstanding trade and investment barriers to U.S. providers of a wide range of financial services, including banking, insurance, securities, and credit rating services, among others. These barriers include foreign equity limitations and discriminatory regulatory requirements. Removal of these barriers should allow U.S. financial service providers to compete on a more level playing field and expand their services export offerings in the Chinese market.
Currency: The chapter on Macroeconomic Policies and Exchange Rate Matters includes policy and transparency commitments related to currency issues. The chapter addresses unfair currency practices by requiring high-standard commitments to refrain from competitive devaluations and targeting of exchange rates, while promoting transparency and providing mechanisms for accountability and enforcement. This approach will help reinforce macroeconomic and exchange rate stability and help ensure that China cannot use currency practices to unfairly compete against U.S. exporters.
Expanding Trade: The Expanding Trade chapter includes commitments from China to import various U.S. goods and services over the next two years in a total amount that exceeds China’s annual level of imports for those goods and services in 2017 by no less than $200 billion. China’s commitments cover a variety of U.S. manufactured goods, food, agricultural and seafood products, energy products, and services. China’s increased imports of U.S. goods and services are expected to continue on this same trajectory for several years after 2021 and should contribute significantly to the rebalancing of the U.S.-China trade relationship.
Dispute Resolution: The Dispute Resolution chapter sets forth an arrangement to ensure the effective implementation of the agreement and to allow the parties to resolve disputes in a fair and expeditious manner. This arrangement creates regular bilateral consultations at both the principal level and the working level. It also establishes strong procedures for addressing disputes related to the agreement and allows each party to take proportionate responsive actions that it deems appropriate.
Ricketts Comments on China “Phase One” Deal Signing
Today, Governor Pete Ricketts issued a statement as President Donald J. Trump signed a “Phase One” trade deal with China.
“Congratulations to President Trump on securing a Phase One trade deal with China. The President’s relentless focus on right-sizing our trade relationship with China is important for Nebraska as we seek to expand markets for our ag products around the world. Looking to the future, the U.S. must stay the course on addressing remaining priorities in our national interest in Phase Two.”
Senator Fischer Attends White House Signing of China Trade Deal
U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today. She attended the White House signing of the first phase of a trade deal between the United States and China:
“I thank President Trump and his team for working hard to negotiate this deal between China and the United States. China has agreed to purchase, on average, $40 billion of agricultural products every year for the next two years. This deal will help expand market access for Nebraska and will bring much needed economic certainty to the manufacturing, agriculture, and energy sectors,” said Senator Fischer.
This trade agreement reflects a commitment from China to purchase at least an additional $16 billion in agricultural products above the $24 billion purchased in 2017. The agreement also includes provisions that address a multitude of non-tariff barriers for commodities like beef, dairy, animal feed and biotech products.
In addition to agriculture, the trade agreement makes headway on intellectual property, technology, financial services, currency manipulation monitoring, and a process for dispute resolution.
Sasse Statement on “Phase One” China Deal
U.S. Senator Ben Sasse, an outspoken advocate for Nebraska agriculture and trade, issued the following statement as President Trump signed a “Phase One” trade deal with China.
“Trade is always good news. Every Nebraskan is rooting for the President to get good deals done. More trade is a win-win for Nebraska’s farmers and ranchers. The Chinese aren’t our foes, but the tyrants running the Chinese Communist Party are. Nebraskans want to keep the pressure on the commies in Beijing and make sure Chinese families can enjoy the best ag products in the world.”
Smith Statement on United States-China Trade Deal
Congressman Adrian Smith (R-NE) released the following statement after attending the signing of the “Phase One” China trade agreement today at the White House:
“This first phase agreement with China is a positive first step toward addressing one of our biggest trade challenges. We must be vigilant in ensuring China follows this agreement, as we continue to fight for free and fair treatment of Nebraska products. I look forward to taking Nebraska agriculture producer concerns to the White House.”
Steve Nelson, President, Regarding President Trump Signing Phase One Trade Agreement with China
“Today’s signing of the Phase One deal with China is positive for American agriculture and Nebraska’s farm and ranch families. There’s no question it’s a critical step forward in stopping escalation of the trade dispute with what has been one of our largest trading partners and purchasers of Nebraska agricultural commodities; particularly Nebraska soybeans. Equally important, this deal opens the door for the U.S. to regain a foothold in Chinese markets. Make no mistake, there’s a lot of ground for the U.S. to make up. Our diminished access created cracks allowing many of our global competitors to make inroads into China. While we’re still learning about the full provisions, there appears to be much promise in this deal for agriculture. We are extremely hopeful the excitement around the agreement is validated by the Chinese in the form of significantly increased purchases of U.S. and Nebraska agricultural commodities and products moving forward.”
Notable:
Chinese purchases of U.S. agricultural products average just over $25 billion per year between 2014-2017, with Nebraska agriculture exports to China averaging just under $1 billion between 2015-2017 (i.e. the years prior to the start of trade disruptions).
In 2018, Chinese purchases of U.S. agricultural products fell to $13 billion and through November of 2019 equaled $15 billion.
According to the American Farm Bureau, the U.S. lost agricultural export sales to China over the last two years of nearly $16 billion. The two-year decline in soybeans and oilseed products accounted for more than $11 billion of the losses followed by grains and animal feed losses of nearly $2 billion.
NCGA at White House for U.S.-China Phase One Signing
NCGA President Kevin Ross today attended a White House ceremony, commemorating the signing of the phase one deal between the United States and China. Ross made the following statement.
“Signing the phase one agreement with China is a step in the right direction to resolving the trade dispute with China and restoring the trading relationship between our two countries. China holds tremendous opportunity for American corn, ethanol and DDGs and NCGA looks forward to learning further details of what phase one will mean for these products. As more specifics become available, we will closely monitor implementation to ensure that the commitments are upheld and that U.S. corn farmers resume trading with Chinese customers. NCGA urges the Administration to quickly commence phase two negotiations and work to resolve retaliatory tariffs.”
Soy Growers Appreciate Tangible Progress with China, Have Renewed Hope for Tariff Resolution
The soybean industry applauds the Administration for making considerable strides with China in its Phase 1 deal and is hopeful the agreement will lead to additional measures that restore open trade between the two countries, including a negotiated solution in the next phase that removes tariffs on American soybeans shipped to China.
“We have long supported changes to how China conducts business with the world, in agriculture and other industries. Today’s signing addresses many of those concerns and is a positive for the U.S., including reduction of non-tariff barriers to trade that are important to soybean growers and other agriculture groups.” said Bill Gordon, soy farmer from Worthington, Minn., and ASA president.
Changes outlined in the Phase 1 deal are encouraging: Increased agriculture purchases; a more predictable, efficient, science- and risk-based regulatory process for evaluation and authorization of agricultural biotechnology products; improvements to sanitary and phytosanitary measures; and intellectual property protection for agriculture, among others. The American Soybean Association (ASA) has actively advocated for many of the improvements itemized in White House summary documents of the deal.
“We are very pleased to see true progress on the regulatory process for ag biotech products, sanitary and phytosanitary measures, and other big points of concern. And, importantly, this milestone moment in the negotiation process bodes well for de-escalation of the tension between our two countries and making further progress,” Gordon commented, “Yet, as an industry, we have a lingering unease regarding the tariff on U.S. beans, which was not addressed in this deal. China needs to take action, and, as a goodwill gesture, offer to remove its retaliatory tax on our soybeans.”
According to documents released by the White House outlining details of the deal, China’s imports of U.S. agricultural products, “such as soybeans, cotton, grains, meats, ethanol, seafood, and the full range of other agricultural products,” will total at least $80 billion over the next two years.
USMEF Statement on U.S.-China Phase One Trade Agreement
Today President Trump and Chinese Vice Premier Liu He signed the U.S.-China "Phase One" trade agreement. The Office of the U.S. Trade Representative (USTR) has posted the agreement text and related fact sheets online. U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:
For the U.S. pork and beef industries to expand their business in China, the world's largest and fastest-growing destination for imported red meat, it is critically important that China follows international standards for pork and beef trade. The Phase One trade agreement lays important groundwork toward this goal, and USMEF thanks the Trump administration for addressing the barriers that have hampered U.S. pork and beef exports to China for many years.
Last year China's red meat imports exceeded $14 billion, a 65% increase from 2018. The U.S. industry looks forward to capturing a greater share of this rapidly growing market.
NPPC Welcomes Phase-One Trade Deal with China; Urges Elimination of All Punitive Tariffs
Today, President Trump signed the first phase of a trade deal with China that includes the purchase of $40 billion in agricultural products, including pork—by far the most significant protein consumed in China. National Pork Producers Council (NPPC) President David Herring and Board Member Craig Andersen were in attendance at today's signing ceremony. Herring, a hog farmer from Lillington, N.C., issued the following statement:
"NPPC applauds the administration for its hard work in negotiating this deal. China is the world's biggest producer and consumer of pork. However, the country's hog supply has been ravaged by African swine fever — a disease affecting only pigs with no human health or food safety risks — resulting in a tremendous shortage of pork and mounting food price inflation. The U.S. is typically the largest pork exporting nation in the world and generally the lowest-cost producer in the world. We are ideally positioned to address this unprecedented sales opportunity for pork in China.
"While China's phase one commitments are welcomed, U.S. pork exports continue to be suppressed because of the country's 60 percent punitive tariffs. In order to fully capture the benefits of this deal, we need China to eliminate all tariffs on U.S. pork for at least five years. According to Iowa State University Economist Dermot Hayes, if U.S. pork gets unrestricted access to the Chinese market, it will reduce the overall U.S. trade deficit with China by nearly six percent, generate 184,000 new U.S. jobs and produce $24.5 billion in new pork exports all within the next decade. However, if the U.S. continues to face 60 percent punitive tariffs (and a cumulative tariff of 68 percent), while our competitor nations are assessed an 8 percent tariff, U.S. pork sales will be suppressed as China imports more pork from other nations."
U.S. pork producers have been significantly harmed by trade retaliation from China, losing $8 per hog—or $1 billion on an annualized industry-wide basis, according to Dr. Hayes. U.S. pork producers need tariffs eliminated, helping China manage rampant food price inflation and ensuring America fully benefits from the phase one agreement.
"Pork is a litmus test for the phase one deal with China. The worst kept secret in the world is China's serious shortage of pork and rampant food price inflation. If China is unwilling to drop its tariffs on U.S. pork, it's difficult to envision the country meeting the $40 billion per year agriculture purchase commitment," added Herring.
NCBA: Trade Deal With China a "Game Changer" for American Beef Producers
The National Cattlemen’s Beef Association today applauded the signing of a Phase-One trade agreement with China, saying this agreement will lay the groundwork for American-produced beef to be highly competitive in the world’s most populous market.
“The Phase-One Agreement with China will be a game changer for the U.S. beef industry," said NCBA President Jennifer Houston, who joined President Trump at the White House for today's event. "For many years, Chinese consumers have been denied access to high-quality U.S. beef—the same U.S. beef we feed to our families. Non-scientific trade barriers like the ban on production technologies, the extensive traceability requirements, and the 30-month BSE restriction have greatly limited our ability to tap into growing beef demand in China. The removal of these massive trade barriers gives Chinese consumers access to the U.S. beef they desire, and it gives America’s cattlemen and cattlewomen the opportunity to provide U.S. beef to a growing consumer-base that represents one-fifth of the global population and a middle-class that is greater than the entire U.S. population.
“We cannot begin to express our thanks to President Trump for fighting for America’s cattle producers,” Houston continued. “Restoring U.S. beef access to China was the top agenda item resulting from the Mar-a-Lago summit in 2017, and our negotiators have never stopped working to reopen the Chinese market for U.S. beef. The Trump Administration did not allow the odds to dictate the outcome, and because of their hard work and dedication, America’s cattle producers and Chinese consumers will have a stronger relationship that will benefit both countries for generations. Today is a great day for the U.S. beef industry and the National Cattlemen’s Beef Association.”
When American-produced beef was banned from China for 14 years, NCBA worked with the U.S. government for more than a decade to reopen access to the market of nearly 1.4 billion consumers. American producers scored an initial victory in June 2017, when the Chinese market was reopened for the first time since 2003. NCBA joined U.S. Agriculture Secretary Sonny Perdue and American Ambassador to China Terry Branstad in Beijing to celebrate and mark the official reopening of the Chinese market.
However, many non-science-based, non-tariff trade barriers remained in place, which limited the amount of American-produced beef that qualified for China. NCBA says that this Phase-One Agreement will begin knocking down those trade barriers and significantly improve access to what is potentially a top export market for U.S. beef producers.
Farmers Welcome Opportunities from China Agreement
American Farm Bureau Federation President Zippy Duvall
The United States and China today signed a “Phase 1” trade agreement that both countries say will lead to increased purchases of U.S. agricultural products by China. “Today’s signing is an important step in giving America’s farmers and ranchers the ability to get back to business in the global market.
“China was once the largest market for U.S. agricultural products but has dropped to fifth largest since retaliatory tariffs were introduced. This agreement will help turn around two years of declining agricultural exports. The potential of tens of billions more in exports is welcome news for farmers who are eager to compete on a more level playing field.
“This is a great way to start the new year, but there is more work to do. We encourage the Senate to pass the U.S.-Mexico-Canada Agreement to increase export opportunities with our North American neighbors. We also look forward to additional trade agreements with countries that are locking-in deals with our competitors. This must be a focus in 2020.”
Background:
- The agreement takes effect in 30 days.
- Over the next two years, China could potentially purchase up to $50 billion worth of agricultural products annually, according to U.S. officials.
- As a result of the agreement the U.S. did not impose threatened tariffs on $160 billion of Chinese imports in 2019.
First Phase of U.S.-China Trade Deal Finalized
In an effort to ease tensions between their two countries, President Donald Trump and Chinese Vice Premier Liu He today signed the first phase of a trade agreement. At the time of the signing, the deal’s text had not yet been published. However, according to the White House, China has agreed to “structural reforms” on trading, currency, and intellectual property rules and practices. The country will also reportedly increase its purchases of American goods and services by at least $200 billion over the next two years, which includes $40-50 billion worth of agricultural products. Though China has confirmed that it will increase its agricultural purchases, it has not publicly committed to a specific dollar amount, nor has it indicated which products it plans to buy.
The progress comes as a relief to National Farmers Union (NFU), which has consistently expressed concern about the consequences of President Trump’s antagonistic trade policy for American farmers and ranchers. But because the terms of the deal are still largely unclear, the organization continues to be apprehensive about its implications for agriculture and China’s trade practices.
In a statement, NFU President Roger Johnson conveyed cautious optimism about the first phase of the agreement and pushed for stronger and more enforceable provisions in the second phase:
“After so many months of uncertainty and escalating tensions, it is a good sign that our two countries appear to have found common ground. We are hopeful that this deal will meaningfully address China’s problematic trade practices and intellectual property theft as well as finally establish some stability for American farmers’ export markets.
“But given the numerous deals that have been reached and then breached in the past two years, we are also skeptical. And without more concrete details, we are deeply concerned that all of this pain may not have been worth it. Not only has this trade war cost farmers billions of dollars worth of sales to China, but it has also bruised our reputation, making other trading partners reluctant to work with us. To justify these lasting damages, this deal must deliver more than vague, unenforceable, short-term commitments – we need real and lasting behavioral change from China, and we need reliable and robust agricultural export markets. That is the standard the Trump administration should be aiming for as it negotiates the next phase of this agreement.”
U.S. Grains Council Statement On Signing Of U.S.-China Phase One Agreement
Chairman Darren Armstrong, farmer from North Carolina
“The U.S. Grains Council is pleased to see the signing today of a Phase One deal with China, which should reduce continued market uncertainty and incentivize China to purchase significant amounts of the full range of U.S. agricultural products, including grains, distiller's dried grains with solubles (DDGS) and ethanol, to total at least $80 billion over the next two years.
"The structural reforms, particularly those affecting feed grains, agricultural biotechnology, and sanitary and phytosanitary measures – once fully committed and implemented – will hopefully offer lasting impacts beyond short-term commitments to make accelerated, market-driven purchases. The agreement, as we understand it, will offer opportunities for U.S. farmers to once again become competitive in China and serve our customers by addressing retaliatory tariffs and long-standing, non-tariff barriers to trade.
“Our organization and our members believe in the long-term value of international trade, and we have spent more than 35 years working with partners in China to develop its feed and livestock industry. Our sector is committed to remaining a reliable supplier of grain products and ethanol for customers in the feed, food and energy industries in China as our countries' relationships evolve.”
Dairy Applauds Key Achievements Made in China Phase One
Today’s signing of the Phase One trade agreement with China makes important advances on nontariff issues harming U.S. dairy trade. While promises of additional Chinese purchases of U.S. agricultural products in the next two years are encouraging, the benefits for the dairy industry remain unclear. Given that China’s retaliatory tariffs remain a significant impediment to U.S. dairy sales in China, the U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) stress that work with China is not complete until the retaliatory tariffs against all U.S. dairy exports are fully lifted.
“Today’s announcement of a deal that makes progress on regulatory restrictions and other nontariff barriers hindering dairy trade is a positive step forward. These are important deliverables that USDEC has been pressing China for over the course of the last few years,” said Tom Vilsack, president and CEO of USDEC. “We need to continue to work with our government, China’s government and our customers to finish the job by lifting the remaining Chinese retaliatory tariffs against our exports.”
“America’s dairy farmers have been disproportionally harmed by China’s retaliatory tariffs, and we cannot ask our farmers to continue operating under this financial uncertainty,” said Randy Mooney, dairy farmer from Rogersville, MO and Chairman of NMPF, who joined President Trump and administration officials at the White House signing ceremony on Wednesday. “We appreciate the hard work invested by both the U.S. and Chinese governments, but we urge China to swiftly lift all retaliatory tariffs against U.S. dairy products and work with U.S. suppliers to fulfill their purchasing commitment.”
The Phase One deal with China makes progress on nontariff barriers important to U.S. dairy, such as:
Tackling facility and product registration steps that have stymied firms seeking to export to China for several years;
Improving the regulatory pathway for exports of infant formula and fluid milk (including extended shelf life milk) to China;
Creating new transparency and due process obligations regarding geographical indications and common food names; and
Promises of increased purchases of U.S. agricultural goods, including dairy.
Left to be fully resolved is how China will fulfill its commitment to purchase large quantities of U.S. agriculture products, including dairy.
China remains a valuable export market for U.S. dairy products, despite retaliatory tariffs. Over the 12-month period spanning December 2018 – November 2019, U.S. dairy exports to China totaled $377 million in sales. However, retaliatory tariffs on U.S. dairy products have steeply disadvantaged the U.S. industry compared to its competitors and contributed to 47 percent decline in U.S. exports to China over that same period, harming U.S. farmers, manufacturers and exporters.
Phase One Trade Deal Should Restore China’s Demand for U.S. Wheat
U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are very encouraged by the signing of a Phase One trade agreement with China. Chinese imports of U.S. soft white (SW), hard red spring (HRS) and hard red winter (HRW) wheat classes were trending up before abruptly ending when China implemented retaliatory tariffs on U.S. wheat and other agricultural commodities in March 2018.
“Even though China has huge domestic wheat stocks, they were buying more U.S. wheat because they needed it to meet growing demand for higher quality wheat foods,” said Vince Peterson, President of U.S. Wheat Associates (USW), the organization funded by farmers and the U.S. government to promote wheat exports. “The losses we demonstrated soon after China stopped importing U.S. wheat have only grown since then, so we hope the agreement signed today signals a potential turn-around.”
Adding to the optimism is China’s separate agreement to work toward filling its 9.6 million metric ton (MMT) reduced tariff rate quota (TRQ) for wheat imports. If the changes are in fact implemented, and Chinese millers can respond to market signals, most of the TRQ should be used. For U.S. wheat farmers, the Phase One deal and TRQ compliance would create a very welcome opportunity for Chinese miller customers to once again apply the technical expertise and assistance USW provides to use wheat with specialized end-use applications that distinguishes U.S. wheat from domestic Chinese supplies.
"Wheat farmers have experienced the harm of unfair trading practices at the hands of China for far too long, as reinforced by the recent WTO wins. This step forward in negotiations between the U.S and China is a tremendous way to begin the new year," stated NAWG CEO Chandler Goule. "As part of its Winter Conference this week, NAWG and its states will hold several meetings on The Hill where it will be stressed to Members and staff the need to continue expanding our international markets, including to swiftly move forward with Phase One of U.S.-China trade deal."
Re-opening China would be a huge lift for wheat farmers who are still producing a quality product in spite of the income challenges they have faced for several years. USW and NAWG want to thank the negotiators in the Office of the U.S. Trade Representative for their dedicated effort to create this opportunity and we look forward to learning more details about the agreement.
“Our organization and the farmers we represent agree with the Trump Administration that China has not been transparent about its protectionist policies,” Peterson said. “Now it remains to be seen if China will comply fully with its WTO commitments and this new agreement so that trade between our two countries can flourish.”
USW and NAWG are especially pleased that the agreement contains structural changes to how U.S. exporters access the Chinese market. U.S. negotiators should be commended for seeing the opportunity to build on our wins at the WTO against China’s TRQ administration and agricultural subsidy policies by including provisions on administration and transparency of policies.
The additional commitments included in the agreement contain important transparency measures, such as reporting on TRQ awards and operation of subsidy programs in addition to reaffirming commitments on eligibility for access to TRQ.
NCFC President Chuck Conner on the Signing of the Agreement between the United States and China
“The signing today of the ‘phase one’ trade agreement between the United States and the People’s Republic of China represents an important step towards helping America’s farmers and ranchers expand their exports. A key to this is that the agreement includes a commitment by China to significantly increase in purchases of U.S. agricultural exports and to reform a range of trade practices that impact agriculture. We look forward to working with the Trump Administration in the coming months to ensure that this commitment by China is kept so that American farmers can take advantage of this tremendous opportunity.”
NGFA issues statement on signing of Phase One trade accord with China
The National Grain and Feed Association issued the following statement on the signing of the Phase One trade agreement with China. NGFA Chairman Eric Wilkey, president of Arizona Grain Inc., Casa Grande, Ariz., was among agricultural industry leaders attending the signing ceremony at the White House today.
“The National Grain and Feed Association (NGFA) commends President Trump and his administration for successfully concluding and signing a Phase One trade accord with the People’s Republic of China. It represents a significant first step in resolving disruptions and long-standing, festering impediments involving trade between the world’s two largest economies, and contains substantial commitments from China to purchase U.S. food, agricultural and seafood products. It also is significant that the agreement contains Chinese commitments to abide by science- and risk-based processes with transparency and specific timelines for regulatory actions related to agricultural biotechnology, animal food, and meat and poultry products.
“NGFA looks forward to delving into the details of the agreement and its application to U.S. agricultural exports, and will have additional comments and analysis once doing so. But early indications are that the Phase One agreement will help begin the process of restoring U.S.-China agricultural trade volumes and effectively address several existing trade impediments for specific agricultural products.
“NGFA believes more negotiations need to occur to resolve particularly non-tariff barriers to trade, including sanitary and phytosanitary issues, affecting grain and grain products, that too frequently and unpredictably disrupt U.S. agricultural trade with China. NGFA also seeks to restore competitive open market agricultural trade and a level playing field with China. NGFA appreciates the administration’s recognition of these issues and will be encouraging that they be addressed in Phase Two negotiations with China. NGFA hopes those discussions will begin soon to build on the momentum and progress established in the Phase One agreement.”
NSP Statement on Phase One Agreement Signing with China
National Sorghum Producers Chairman Dan Atkisson, a sorghum farmer from Stockton, Kansas, made the following statement today after the signing of the U.S.-China Phase One agreement at the White House.
"National Sorghum Producers was pleased to be a part of the signing today of a Phase One deal with China and applauds both the U.S. and Chinese administrations for their hard work to progress negotiations and reach an agreement that should lessen market uncertainty and shift purchases to more U.S. agriculture products, like sorghum, by our customers in China. Our farmers, as well as Chinese consumers, will benefit from this agreement.
We anticipate fully analyzing the terms of the deal, but as for what we understand today, it offers more opportunities for our growers to once again become competitive in the Chinese market and to regain relationships with our customers there. We know we have the sorghum to sell, and we know our customers in China want our product. Therefore, we look forward to re-establishing business at the shipment levels we saw before this process began.”
Skor statement on signing of Phase One trade agreement with China
Today, U.S and Chinese government officials signed the Phase One trade agreement, re-opening many major export markets between the two nations. Growth Energy, the nation’s largest ethanol association, CEO Emily Skor issued the following statement:
“The signing of the Phase One trade agreement with China today is another positive step towards restoring market confidence for U.S. biofuel producers,” said Skor. “We’re grateful to U.S administration officials for their continued work on securing this trade agreement at such a pivotal time for our nation’s agriculture and renewable energy industries. Breaking down trade barriers between our nations will provide a valuable opportunity to restore demand for American biofuel, and we hope to soon see biofuels and DDG exports back on the Chinese market.”
In 2016, China was the third largest export market for U.S. biofuels, but exports were nearly eliminated due to retaliatory tariffs and trade negotiations.
RFA Hails First Phase of U.S.–China Trade Agreement
With today's signing of the first part of the new U.S.–China trade agreement, Renewable Fuels Association President and CEO Geoff Cooper released the following statement.
“We are very optimistic about the potential of this agreement for American agriculture and the renewable fuels industry—with the inclusion of ethanol and key co-products like distillers grains—and are looking forward to more specific details on the agreement. America’s ethanol producers have experienced significant economic losses due to punitive Chinese tariffs on our products, and we are eager to return to a more open trading relationship with China. Chinese consumers understand that using ethanol can lower fuel prices and help address major air quality concerns in urban areas across the country. In addition, the ethanol industry’s animal feed co-products are an economical source of nutrition for China’s livestock and poultry sector.
“We hope this deal reopens the door immediately for meaningful exports of both ethanol and feed co-products to China, and we thank President Trump, the U.S. Trade Representative, and U.S. Department of Agriculture for their efforts to reopen the Chinese market to U.S. agricultural and energy products. And like President Trump in his remarks right before the signing, we also appreciate the hard work of Sens. Chuck Grassley, Joni Ernst and Deb Fischer as true champions for ethanol.”
ACE: China phase one trade deal is a step forward, but significant ethanol market constraints remain
Today, a “phase one” trade agreement between the U.S. and China was signed and is set to go into effect within 30 days. Among other provisions, the partial agreement includes a commitment by China to purchase agricultural products over the next two years, including U.S. ethanol and distillers grains. American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement after early assessment of the available trade agreement details:
“Phase one represents a positive step in the right direction, especially once we have evidence that China has made actual purchases of U.S. ethanol and distillers grains, but given ongoing export and domestic market constraints, there is much more work to do.
“The signing of this partial trade deal with China doesn’t erase the pain still being felt at home due to the artificial lid EPA’s mismanagement of the Renewable Fuel Standard has placed on domestic ethanol demand. Further, today’s trade agreement follows reports that China suspended its plan to implement an E10 nationwide mandate this year, raising more uncertainty for the industry. We remain hopeful the next phase of talks with China can conclude with the restoration of a robust and enforceable trade relationship.”
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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