Wednesday July 1 Ag News

2020 Nebraska Farm Real Estate Report
Jim Jansen, NE Extension Educator

The statewide all-land average value for the year ending Feb. 1, 2020, averaged $2,725 per acre, or about a 3% ($80 per acre) increase to the prior year’s value of $2,645 per acre. This marks the first year-to-year increase since land values in the state peaked at $3,315 per acre in 2014.

Many cash rental rates in Nebraska were set prior to the economic shocks caused by COVID-19. The survey collection period for the Nebraska Farm Real Estate Report may partially reflect these rates and not account for possible adjustments. Landlords and tenants might consider amending contractual agreements to account for these shocks or consider the use of alternative lease arrangements.

Webinar
A webinar covering Nebraska agricultural land values, trends and outlook, will be held on July 16.
Register here... https://unl.zoom.us/webinar/register/WN_LKMkxtTlSe2yjS8fjRukRA. 

Highlights
    Northeast district average $5730/acre, up 3%
    East Central district average $6495/acre, up 5%
    The North, Northeast, Central, East, and Southeast Districts reported the highest rates of increase, ranging from 3% to 5% for the all-land average. These regions trended close to the improvement in value for the statewide average.
    Western regions of Nebraska, including the Northwest, Southwest, and Southern Districts, reported small regional average changes.
    Gravity and center pivot irrigated cropland noted smaller increases of 1% and 3% for the state-wide average, at $5,755 and $6,125 per acre.
    Dryland cropland having no irrigation potential and with irrigation potential average $3,165 and $4,140 per acre or 4% and 3% higher than the prior year.
    Grazing land, including tillable or non-tillable, noted 5% and 4% increases for state-wide averages of $1,240 and $830 per acre.
    In 2020, panel members noted 1031 tax exchanges, non-farmer investor interest in land purchases, and current interest rate levels as forces guiding higher market values. These forces were reported as slightly positive on impacting future land prior to the domestic outbreak of COVID-19.

View the full report here... https://agecon.unl.edu/2020-nebraska-farm-real-estate-report. 


 
NDA ENCOURAGES RABBIT OWNERS TO WATCH FOR HEMORRHAGIC DISEASE

The Nebraska Department of Agriculture (NDA) is warning rabbit owners in Nebraska to be aware of a serious and highly contagious viral disease of rabbits that has recently been identified in multiple states. Rabbit Hemorrhagic Disease Virus (RHDV) has been diagnosed as the cause of death in wild and domestic rabbits in New Mexico, Arizona, Texas and Colorado, as well as domestic rabbits in Nevada and Utah and wild rabbits in California. To date, the virus has not been found in Nebraska.
“It is important that rabbit owners know about this disease so they can more closely monitor the health of their rabbits, particularly ones that may be comingling with other animals,” said NDA State Veterinarian Dr. Dennis Hughes.

Symptoms of RHDV include fever, anorexia, wasting, diarrhea and respiratory illness. RHDV can also cause sudden death in rabbits. The virus is spread directly between rabbits and can survive for weeks in contaminated environments. Currently, there are no approved vaccines licensed in the United States for RHDV, although a foreign-produced vaccine is being made available in states where the virus has already been identified. RHDV does not infect humans, livestock or non-rabbit household pets.

Enhanced biosecurity helps prevent the introduction and spread of viruses and diseases including RHDV. In addition to thorough cleaning and sanitation practices, rabbit owners should consider restricting visitors to their rabbitries, and isolating new rabbit additions for 30 days.

RHDV is a notifiable Foreign Animal Disease, and practitioners who suspect RHDV should contact the Nebraska Department of Agriculture at 402-471-2351. Individuals who have concerns about unusual deaths of wild rabbit and hare populations are encouraged to contact Nebraska Game and Parks at 308-763-2940.

All rabbits entering Nebraska must be accompanied by a Certificate of Veterinary Inspection (CVI, or health certificate). If you are considering moving an animal into Nebraska from an affected state, please call 402-471-2351 to learn more. Additional information on Rabbit Hemorrhagic Disease Virus (RHDV) can be found on NDA’s website at: nda.nebraska.gov/animal/diseases/rhd/index.html. 



NeCGA Reaffirms Priorities of E15, Value Added Demand

The Nebraska Corn Growers Association (NeCGA) met recently to finalize upcoming fiscal year budgets and reaffirm priorities and programs around key issues. Priorities include expanding statewide E15, expanding demand through livestock and trade, and reduction of property taxes.

In late May of 2019, the EPA approved the year-round usage of E15, a blend of 15 percent ethanol in vehicles 2001 and newer. While E15 has expanded across the state, Nebraska still has a large potential in the broad adoption of the blend.

“We felt this upcoming year provides a number of great opportunities for the expansion of E15 and even higher-level ethanol blends,” stated Dan Nerud, a farmer from Dorchester and president of NeCGA. “There are a number of grant opportunities for retailers, residents are beginning to travel following various COVID limitations, and it supports Nebraska’s renewable biofuels industry.”

In partnership with the Nebraska Corn Board, the Association will assist in various communication and promotion opportunities to consumers. These programs will assist in promoting the usage of E15 and creating conversations regarding the positive health aspects for consumers and the renewable nature of ethanol.

In addition to ethanol, the Association continues to work through key partnerships to encourage increased corn usage through trade opportunities and livestock expansion. The Association continues to work with and support cooperators such as the U.S. Grains Council and Alliance for the Future of Agriculture.

Regarding state policy priorities, NeCGA continues to highlight the need for meaningful property tax relief. 

“With the agricultural industry in a dire economic situation and losses from coronavirus increasing for Nebraska’s corn farmers, it is imperative the relief in the form of lower property taxes is passed by the Legislature,” added Nerud.



Weekly Ethanol Production for 6/26/2020

According to EIA data analyzed by the Renewable Fuels Association for the week ending June 26, ethanol production rose 0.8%, or 7,000 barrels per day (b/d), to 900,000 b/d—equivalent to 37.80 million gallons daily. Production remains tempered due to COVID-19 disruptions, coming in 16.7% below the same week in 2019. The four-week average ethanol production rate rose 4.1% to 868,000 b/d, equivalent to an annualized rate of 13.31 billion gallons.

Ethanol stocks diminished for the tenth consecutive week, down 4.1% to 20.2 million barrels and 11.7% below year-ago volumes. Inventories tightened across all regions and are at their lowest level since the first week of 2017.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, softened 0.5% to 8.561 million b/d (131.24 bg annualized). Gasoline demand was 9.8% lower than a year ago.

Refiner/blender net inputs of ethanol ticked 0.2% lower to 829,000 b/d, equivalent to 12.71 bg annualized and 12.5% below the year-earlier level.

There were no imports of ethanol recorded for the sixteenth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of April 2020.)



 ASA to EPA: Approving Gap SRE Waivers Would Deal ‘Devastating Blow to Soybean Farmers’

The American Soybean Association (ASA) this week urged the Environmental Protection Agency (EPA) to immediately reject the pending retroactive small refinery exemption (SRE) petitions listed on the agency website and stand with U.S. soybean growers in support of the Renewable Fuel Standard (RFS).

In a letter to EPA Administrator Andrew Wheeler, ASA calls on EPA to apply the U.S. Court of Appeals for the 10th Circuit's ruling on exemptions to small refineries whose temporary exemptions had lapsed earlier, to all pending SRE petitions—including the 52 retroactive SREs recently posted to its dashboard that date back as far as 2011.

“The approval of these gap filings would deal a devastating blow to soybean farmers and biodiesel producers by stifling demand for biodiesel,” ASA President Bill Gordon, a soybean grower from Worthington, Minnesota states in the letter. “Simply put, protecting the RFS is a priority of our organization. We urge you to consider the perspective of the soybean farmer as EPA addresses this gap filing issue.”

Biodiesel is an important market for soybean farmers, providing value for surplus soy oil that is a coproduct of soybean protein meal. The RFS is critical to revitalizing struggling farm economies and further diversifying the U.S. fuel supply. Prolonged SRE uncertainty continues to stifle investment in American biofuels, destabilize agriculture markets and hurt U.S. soy growers, who are already grappling with supply chain disruptions due to COVID-19, the U.S.- China trade war, and other causes of instability.

“As soybean producers face continued uncertainty in export markets, it is more critical than ever to provide our domestic markets a path toward success,” Gordon states. “The RFS does just that—creating stability for biodiesel producers and blenders through annual renewable volume obligations.”

ASA appreciates EPA’s transparency in listing gap year petitions on its dashboard, but moving forward, urges the petitions be denied, as they remain an existential threat to the biodiesel industry and soy growers who rely on the certainty of the RFS to sell their soy oil to biodiesel producers.

 

Nutrient Reduction Strategy Annual Report Shows Record Conservation Engagement by Iowans

The 2018-2019 Iowa Nutrient Reduction Strategy (INRS) annual report was released today by Iowa State University, Iowa Department of Agriculture and Land Stewardship, and the Iowa Department of Natural Resources. The findings reveal increased farmer, landowner and community engagement, use of conservation practices, and funding invested in soil health and water quality projects.

The data also shows that the growing number of installed conservation practices reduced phosphorous losses by an estimated 18.5 percent during the 2006-2010 time period, compared to the 1980-1996 baseline of the INRS. The state has continuously made progress on reducing phosphorous losses from farm fields because of the increased adoption of soil conservation practices, including no-till and conservation tillage, cover crops and terraces, over the last two decades. During the same timeframe, modeled nitrogen loads increased by an estimated 5 percent, characterizing the ongoing challenges related to nutrient reduction.

“Efforts to improve water quality and soil health are happening all over Iowa. We have more partners and landowners engaged in conservation projects than ever before,” said Iowa Secretary of Agriculture Mike Naig. “These efforts are resulting in progress being made, especially towards the state’s phosphorous-reduction goals. We acknowledge more nitrogen-reducing conservation practices are needed. By tracking comprehensively, it helps us better allocate resources, and develop new approaches to guide the implementation of nutrient-reducing practices in priority watersheds around the state.”

“Everyone has a role to play in helping improve Iowa’s water quality. Cities and industries across the state are committing to achieve significant nutrient reductions at their wastewater plants in the coming years and several are already doing so,” said Kayla Lyon, Director of the Iowa Department of Natural Resources. “These improvements don’t happen overnight and it’s gratifying to see the persistence of Iowans to keep moving forward in difficult times.”

2018-2019 INRS Highlights
    An estimated $560 million was invested in education and outreach, research, practice implementation and water monitoring during the 2018-2019 reporting period. This is an increase from $512 million during the 2017-2018 reporting period.
    A total of 540 outreach events were conducted in 98 counties by partner organizations (public, private, and NGO), with a total attendance of 50,800 attendees. Total events increased from 511 in 2018, and total attendance increased from 46,000.
    Iowa is planting at least 973,000 acres of cover crops according to the 2017 USDA Census of Agriculture, which reduces annual nitrogen losses by 4,300 tons and annual phosphorus losses by 330 tons. Estimated cover crop usage is even higher according to survey data collected by the Iowa Nutrient Research and Education Council (INREC).
    There are at least 27 bioreactors and 13 saturated buffers in Iowa, which reduced nitrogen losses by 12 tons in 2018.
    The state has constructed 86 nitrate-removal wetlands. An additional 30 wetlands are under development and are expected to be completed within the next 24 months.
    No-till acreage increased from 6.9 million acres in 2012 to 8.2 million in 2017, according to the USDA Census of Agriculture.
    The NRS establishes a target of reducing total nitrogen and total phosphorus from point sources by 66 percent and 75 percent, respectively. In 2018, 20 municipalities and 22 industries met one or both of these targets.

Emerging Research and Data
The Iowa Nutrient Research Center (INRC) pursues science-based approaches to evaluating the performance of current and emerging conservation practices. INRC also investigates innovative methods to implement and develop new practices. This information is reviewed by the Nutrient Reduction Strategy Science Team, a group of university and public agency researchers, who develop recommendations for including new practices in the Nutrient Reduction Strategy. As technology and practices advance, new data is submitted for consideration in the NRS report.

Multi-purpose oxbows are an example of the emerging conservation practices added as a documented practice in the NRS, based on research showing that targeted restoration of oxbows can reduce nitrate levels by 35 to 54 percent. This practice also creates habitat for waterfowl and other wildlife.

Getting Involved
All Iowans are encouraged to take an active role in the state’s conservation efforts. There are state and federal funding sources available to help farmers, landowners and communities offset the costs of urban and rural water quality improvement projects. Iowans can learn more about grants, cost-share programs, and how to get involved by contacting their local Soil and Water Conservation District office.

To read the 2018-2019 Iowa Nutrient Reduction Strategy annual report in its entirety, visit nutrientstrategy.iastate.edu.



Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 354 million bushels in May 2020. Total corn consumption was up 18 percent from April 2020 but down 31 percent from May 2019. May 2020 usage included 89.4 percent for alcohol and 10.6 percent for other purposes. Corn consumed for beverage alcohol totaled 3.99 million bushels, down 4 percent from April 2020 but up 20 percent from May 2019. Corn for fuel alcohol, at 300 million bushels, was up 22 percent from April 2020 but down 35 percent from May 2019. Corn consumed in May 2020 for dry milling fuel production and wet milling fuel production was 85.2 percent and 14.8 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.23 million tons during May 2020, up 22 percent from April 2020 but down 37 percent from May 2019. Distillers wet grains (DWG) 65 percent or more moisture was 696,152 tons in May 2020, down slightly from April 2020 and down 49 percent from May 2019.

Wet mill corn gluten feed production was 291,064 tons during May 2020, up 26 percent from April 2020 but down 2 percent from May 2019. Wet corn gluten feed 40 to 60 percent moisture was 224,695 tons in May 2020, up 19 percent from April 2020 but down 17 percent from May 2019.

Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 5.39 million tons (180 million bushels) in May 2020, compared with 5.50 million tons (183 million bushels) in April 2020 and 4.96 million tons (165 million bushels) in May 2019. Crude oil produced was 2.06 billion pounds down 2 percent from April 2020 but up 7 percent from May 2019. Soybean once refined oil production at 1.46 billion pounds during May 2020 increased 19 percent from April 2020 but decreased 3 percent from May 2019.



USDA Reminds Producers to Complete Crop Acreage Reports

Agricultural producers who have not yet completed their crop acreage reports after spring planting should make an appointment with their local Farm Service Agency (FSA) office before the applicable deadline. July 15 is a major deadline for most crops, but acreage reporting deadlines vary by county and by crop. Contact your FSA county office for acreage reporting deadlines that are specific to your county.

“The first step to become eligible for many USDA programs is to file an accurate crop acreage report,” said FSA Administrator Richard Fordyce. “To file your acreage report, call your local FSA office to make an appointment. Your local staff is standing by to help you.”

Due to the pandemic, FSA has implemented acreage reporting flexibilities. FSA can work with producers to file timely acreage reports by phone, email, online tools and virtual meetings. Some FSA offices are open for in-person appointments, but you must call first to make an appointment.

Many FSA offices are using Microsoft Teams software to virtually meet with producers to review maps and documents for certification. Producers who want to schedule a virtual appointment can download the Microsoft Teams app on their smart phone or tablet and call the FSA office for an appointment. You may also use Microsoft Teams from your personal computer without downloading software.

County offices can provide producers with maps along with instructions for completing and returning the maps through either mail, email or through commercially available free and secure online tools such as Box for file sharing and OneSpan for eSignature solutions. After planting is complete, producers should return completed maps and the acreage reporting sheet by the applicable deadline.

After completed maps and all acreage reporting information is received, FSA will make software updates and send producers the completed Report of Acreage form (FSA-578) to sign. Producers must return the signed form certifying their acreage report to the FSA office through mail, email or the Box and OneSpan tools by the applicable deadline.

The following exceptions apply to acreage reporting dates:
    If the crop has not been planted by the acreage reporting date, the acreage must be reported no later than 15 calendar days after planting is completed.
    If a producer has not timely filed an acreage report, the producer may file the acreage report within 30 days of the acreage reporting date. Because of the pandemic, late fees will be waived if filed within the 30 days.

FSA is also providing additional flexibilities for producers to file on acres with failed crops or crops that were prevented from planting because of extreme weather events. For insured crops, producers who timely filed a prevented planted claim with the reinsurance company but filed a Notice of Loss (CCC-576) form after the deadline will be considered timely filed for FSA purposes. For uninsured crops, producers may start a Notice of Loss by calling their FSA county office.

Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP-covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins.

When producers are working with FSA staff – either in-person or virtually – they can also take care of applications for other FSA programs, including the Coronavirus Food Assistance Program (CFAP). A CFAP Call Center is available for producers who would like additional one-on-one support with the CFAP application process. Please call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. The CFAP Call Center can provide service to non-English speaking customers. Customers will select 1 for English and 2 to speak with a Spanish-speaking employee. For other languages, customers select 1 and indicate their language to the Call Center staff.

Applications can also be submitted for the Wildfire and Hurricane Indemnity Program Plus for 2018 and 2019 as well as other disaster assistance programs that may be able to assist producers at this time.

For questions, please call your FSA county office.



USDA Announces Commodity Credit Corporation Lending Rates for July 2020

The U.S. Department of Agriculture’s Commodity Credit Corporation today announced interest rates for July 2020, which are effective July 1-July 31, 2020.

The Commodity Credit Corporation borrowing rate-based charge for July is 0.125 percent, same as in June.

The interest rate for crop year commodity loans of less than one year, disbursed during July, is 1.125 percent, same as in June.

Interest rates for Farm Storage Facility Loans approved for July are as follows:
    0.250 percent with three-year loan terms, same as in June;
    0.375 percent with five-year loan terms, same as in June;
    0.625 percent with seven-year loan terms, same as in June;
    0.750 percent with 10-year loan terms up from 0.625 percent in June; and
    0.875 percent with 12-year loan terms up from 0.750 as in June.



USDA Dairy Products May 2020 Production Highlights

Total cheese output (excluding cottage cheese) was 1.10 billion pounds, 0.7 percent below May 2019 but 3.2 percent above April 2020. Italian type cheese production totaled 482 million pounds, 1.5 percent above May 2019 and 6.8 percent above April 2020. American type cheese production totaled 443 million pounds, 0.2 percent below May 2019 and 1.0 percent below April 2020. Butter production was 178 million pounds, 4.9 percent above May 2019 but 18.0 percent below April 2020.

Dry milk products (comparisons in percentage with May 2019)
Nonfat dry milk, human - 158 million pounds, down 9.2 percent.
Skim milk powder - 47.1 million pounds, up 76.9 percent.

Whey products (comparisons in percentage with May 2019)
Dry whey, total - 86.2 million pounds, up 8.9 percent.
Lactose, human and animal - 93.3 million pounds, down 14.9 percent.
Whey protein concentrate, total - 39.9 million pounds, down 4.9 percent.

Frozen products (comparisons in percentage with May 2019)
Ice cream, regular (hard) - 64.1 million gallons, down 4.9 percent.
Ice cream, lowfat (total) - 42.3 million gallons, down 11.7 percent.
Sherbet (hard) - 2.64 million gallons, down 17.2 percent.
Frozen yogurt (total) - 6.01 million gallons, down 7.4 percent.



Smith Statement on USMCA Implementation

Congressman Adrian Smith (R-NE), released the following statement after the United States-Mexico-Canada Agreement (USMCA) went into effect on July 1, 2020. The USMCA improves upon the North American Free Trade Agreement (NAFTA), which was signed more than 25 years ago, while the benefits of NAFTA to Nebraska agriculture remain intact for a future generation.

Canada and Mexico represented more than $3.5 billion in trade exports from Nebraska in 2018 and almost a third of all U.S. farm and food exports went to our North American neighbors. According to National Association of State Departments of Agriculture, the USMCA will lead to $450 million in expanded market access for U.S. agricultural exports.

“After years of negotiating, legislating and implementing, today we see the fruits of our labor. This groundbreaking agreement with Canada and Mexico – who are not just our neighbors, but our two best customers – will bring benefits for Nebraska’s farmers, ranchers, manufacturers, and consumers for years to come.

However, our work is not done.  Kenya, the UK, and Japan all provide outstanding opportunities to develop first-rate trade agreements, and I look forward to working with the administration to continue finding new customers for Nebraska’s world-class production.”

Smith, a senior member of the Committee on Ways and Means, which has jurisdiction over trade, travelled to Ottawa and Mexico City to attend USMCA negotiations and served on the Republican whip team supporting USMCA enactment when it passed the House in December.



Sasse Statement on USMCA Implementation

U.S. Senator Ben Sasse, a leading advocate for Nebraska agriculture and increased trade, released the following statement as the USMCA trade deal went into effect today.

"Today is a win for Nebraska’s farmers and ranchers: USMCA is officially on the books. NAFTA did a lot of good, but this new agreement modernizes our trading relationships with Mexico and Canada and increases business for Nebraska ag. There are more and better trade deals to fight for around the world, and we’ll do that work — but, for today, we should celebrate USMCA as good news for our state.”



Statement by Steve Nelson, President, Regarding USMCA Trade Deal Commencing

“International trade is critical to Nebraska farm and ranch families as the value of Nebraska agricultural exports equates to roughly 30 percent of Nebraska’s total agriculture receipts. The United States-Mexico-Canada Agreement (USMCA) going into effect is a critical long-term step in securing relations with two of our key trade partners.”

“The deal ensures continued access to Mexico, which is the number one purchaser of U.S. corn and the third largest purchaser of U.S. soybeans. Wheat growers also gain as USMCA requires Canada to eliminate its discriminatory wheat grading system. Our state’s beef and pork producers will continue to maintain access to these markets, which is particularly important to pork producers as Mexico and Canada are two of the largest consumers of U.S. pork. In addition, USMCA is a win for our dairy producers as Mexico is the largest export market for U.S. dairy products. USMCA expands on that relationship and makes reforms to Canada’s trade-distorting dairy pricing policies.”

“It’s important to note that USMCA makes progress in several other key areas including recognizing biotechnology with provisions to support innovation and reduce trade-distorting policies. USMCA also strengthens disciplines for science-based measures that protect human, animal, and plant health while improving the flow of trade.”

Mexico and Canada are major buyers of Nebraska’s agriculture commodities collectively purchasing:
82% of Nebraska’s distillers grains exports
80% of Nebraska’s dairy product exports
69% of Nebraska’s prepared and processed food exports
30% of Nebraska’s corn exports
29% of Nebraska’s ethanol exports
21% of Nebraska’s total agricultural products exports
17% of Nebraska’s beef exports
16% of Nebraska’s pork exports



Nebraska Corn Statement: USCMA Takes Effect

The United States-Mexico-Canada Agreement (USMCA) takes effect today, which provides Nebraska’s corn farmers with trade stability following years of uncertainty. A modernized trade agreement with Canada and Mexico has been a top priority of Nebraska’s corn industry after President Trump threatened to withdraw from the North American Free Trade Agreement (NAFTA) early on in his presidency.

Today, the Nebraska Corn Board (NCB) and the Nebraska Corn Growers Association (NeCGA) issued statements praising the newly implemented trade agreement. 

“It’s been a rough couple of years for farmers economically, but the implementation of USMCA is something that will benefit us for years to come,” said Dan Nerud, president of NeCGA and farmer from Dorchester. “This isn’t something that just benefits corn farmers, but rather it supports all Nebraska agriculture. The state’s total ag exports to Canada and Mexico is nearly $1.5 billion. That’s substantial.”

“Through USMCA, Nebraska’s corn farmers and ethanol producers will have access to two of our top and most reliable customers,” said David Bruntz, chairman of NCB and farmer from Friend. “We’re appreciative for everyone that helped get this trade deal to the finish line, from our farmers and our local politicians all the way up to the governing bodies and leaders of each of the three nations.”

According to the Nebraska Department of Agriculture, Nebraska’s total ag exports to Canada and Mexico equate to $1.46 billion, with corn exports totaling over $402 million, ethanol at $96 million and distillers grains at $27 million. Mexico leads the way as the single country that imports the most U.S. corn and distillers grains. Canada is the No. 2 customer for ethanol and distillers grains. 



 Secretary Perdue: President Trump delivers USMCA, a huge win for U.S. agriculture

Today, The United States-Mexico-Canada Agreement (USMCA) enters into force, replacing the decades-old NAFTA. USMCA is a better deal for America’s farmers, consumers and workers that will set them up for success for decades to come. U.S. Secretary of Agriculture Sonny Perdue penned an oped in the North Carolina Fayetteville Observer saying, “USMCA creates more market access for farmers from across our nation to sell their wholesome and nutritious products to our closest neighbors. This is a better deal for America that will grow our economy and put more money in the pockets of American families.”

More here from Secretary Perdue’s oped:

“On my first day as Secretary of Agriculture, President Trump promised he’d fight for better deals for American farmers. That is why the president renegotiated the decades-old NAFTA and modernized it into a better deal for America’s farmers, consumers and workers that will set them up for success for decades to come…

“We are shown once again that President Trump has the backs of America’s farmers and thank him on the delivery of this much better deal…

“USMCA helps all of America’s diverse agricultural industries. This new and improved deal secures greater access to markets and lowers barriers for our agricultural products…

“USMCA eliminates Canada’s unfair Class 7 milk pricing scheme that was creatively developed to allow unfairly low-priced Canadian dairy products to undersell U.S. products in Canada and in third-country markets. United States poultry and egg producers will also see expanded access to Canada’s market, directly benefiting American producers in states like Iowa, Georgia, Arkansas and California…

“It includes rules to address all agricultural biotechnology, including gene editing, in support of 21st century innovations in agriculture. The agreement also improves the flow of trade with new and enforceable rules to ensure that sanitary and phytosanitary measures to protect human, animal, or plant life or health are science-based and transparent…

“USMCA also updates the rules of origin for processed fruits to ensure preferences benefit U.S. producers. Most importantly, the new agreement maintains the tariff-free access for nearly all U.S. agricultural commodities shipped into Mexico and Canada, providing America’s farmers and ranchers continued market access…

“The implementation of this deal sends a strong signal to other important export markets such as the United Kingdom and the European Union that President Trump and Congress are serious about pursuing and enacting future agreements that create better economic opportunities for all parties involved. The United States is open for business, and our farmers are ready to export more of their wholesome and nutritious products to consumers around the world…”




It’s Official: USMCA Enters into Force Today

The United States-Mexico Canada Agreement (USMCA) is officially the law of the land, replacing the 25 year-old North American Free Trade Agreement (NAFTA).

Today’s action is the culmination of nearly two years of negotiations and ratification between the three countries. Following the initial signing November 30, 2018, the United States ratified USMCA on January 29, 2020, followed by Canada on March 13 and Mexico on April 3.

The National Corn Growers Association endorsed USMCA at Commodity Classic 2019 and declared the trade deal the organization’s top legislative priority for the year. Corn farmers submitted over 1300 comments in support of USMCA.

Mexico and Canada are the U.S. corn industry’s largest, most reliable market. Since NAFTA, U.S. ag exports have tripled to Canada and quintupled to Mexico. In 2018, 21.4 million metric tons of corn and corn co-products, valued at $4.56 billion, were exported to Mexico and Canada. Mexico is the top buyer of U.S. corn and DDGs.

These exports have a significant economic impact, producing $5.79 billion in economic activity, supporting 36,480 jobs and 300,000 farms. USMCA is a big win for America’s farmers, rural communities, and the American economy as a whole.

NCGA thanks the Trump Administration, members of Congress, leaders in Mexico and Canada, and corn farmers across the country for their commitment to seeing USMCA enter into force.

USMCA can serve as a template for future trade agreements and NCGA will continue to advocate for new trade agreements that offer new growth opportunities for U.S. corn and corn products.



ASA Applauds as USMCA Takes Effect

After nearly a year of advocating on the Hill and online for a new North American free trade deal, the American Soybean Association (ASA) cheers the implementation of the United States-Mexico-Canada Agreement (USMCA).

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.

ASA expresses its strong appreciation to the Administration and Congress for coming together on this bipartisan effort to ratify the agreement, which was signed into law by President Trump in January 2020.

“USMCA is a win for U.S. soybean farmers and the American economy, as it restores certainty and stability to two important export markets for our farmers and lays a foundation for future growth,” said ASA President Bill Gordon, a soybean grower from Worthington, Minnesota. “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 another positive for the ag industry.”

Gordon, who attended the USMCA signing in January at the White House, expressed gratitude to lawmakers and the Administration for seeing the trade deal through, as well as the soy growers who pushed tirelessly every step of the way.

“On behalf of ASA, I thank the Administration and Congress for making USMCA a priority, and the soy growers who took time from their fields to advocate, whether in-person or online, to make this agreement a reality,” said the farmer.

USMCA replaces NAFTA, maintaining zero tariffs on U.S. soybeans, improving transparency, support for biotechnology and innovation, and creates a rapid response mechanism to respond to trade challenges.



U.S. Grains Council Celebrates U.S.-Mexico-Canada Agreement As It Enters Into Force

Today, the U.S-Mexico-Canada Agreement (USMCA) officially enters into force, a culmination of years of work to update and improve the North American Free Trade Agreement (NAFTA), offering partners improved agricultural market access and freer, fairer trade between the countries.

“This agreement solidifies our country’s most important and strategic trade relationships with our best customers and promises further economic growth in tandem with our most-valued partners – Mexico and Canada,” said Darren Armstrong, U.S. Grains Council (USGC) chairman. “We appreciate the administration’s hard-won efforts to deliver and implement an agreement that includes significant improvements and offers more modern approaches to trade and we thank our partners in both Canada and Mexico whose efforts have been equally appreciated and fruitful.”

From negotiations to ratification, the Council worked and continues to work within the industry and with Canadian and Mexican corn, sorghum, barley, co-products and ethanol customers to ensure the needs of the U.S. grains sector are met and USMCA will build on the success the U.S. experienced under NAFTA.

“We often hosted Mexican buyers to the United States, sent U.S. farmers on missions to Mexico and have continued to market the importance of our trade relationships with our stakeholders in both countries,” said Armstrong. “Both the Council’s leaders and members are very pleased to see USMCA enter into force today and look forward to many prosperous years for our country’s farmers and those in Mexico and Canada.”



NCBA Celebrates Implementation of USMCA Trade Deal

The National Cattlemen’s Beef Association (NCBA) today celebrated the successful implementation of the U.S.-Mexico-Canada Agreement (USMCA) by sending a joint letter of thanks to the leaders of all three nations. The letter was sent to President Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Andrés Manuel López Obrador. It was signed by NCBA President Marty Smith, Canadian Cattlemen’s Association President Bob Lowe, and CNOG President Oswaldo Chazaro Montalvo.

“Together, our organizations worked in unified support of USMCA because it protects market-based principles while making improvements in other sectors to reflect the needs of a modern North American economy,” the leaders of the three cattlemen’s organizations wrote. “We are the envy of many countries because of the marketplace freedom USMCA will continue to provide both producers and consumers.

“International trade is fundamental to the success of North American farmers and ranchers and the full value of the products we sell can only be achieved when we have access to the markets that most value them,” the letter continued. “In the face of the economic hardships of COVID-19, it is timely and welcome that USMCA enters into force, providing a foundation of economic stability for our rural communities and food systems.”

Congress last winter overwhelmingly approved the new USMCA deal, with the Senate voting 89-10 in support of it a few weeks after the U.S. House of Representatives passed it with a strong bipartisan vote of 385-41. NCBA worked hard to build support for USMCA on Capitol Hill, and then-NCBA-President Jennifer Houston led a delegation of more than a dozen members to the White House to attend the official signing ceremony on Jan. 29. 

“We believe that our economies and our countries will be stronger together through USMCA,” the letter concluded.



U.S. Dairy Industry Commends Administration and Members of Congress as USMCA Enters into Force

The U.S. dairy industry celebrates the U.S. Trade Representative’s office and Congress for the strides made in the United States-Mexico-Canada Agreement (USMCA) as it enters into force today. At the same time, the National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) also noted that harvesting the full benefit of those hard-fought wins now relies on robust enforcement of the agreement.

The modernized trade deal is a testament to the tremendous bipartisan effort from both the Administration and members of Congress to improve trade rules. USMCA is designed to usher in significant changes to U.S.-Canadian dairy trade, restore certainty to U.S.-Mexico trade relations and establish important protections for common name cheeses.

Given the importance of these reforms to the growth of U.S. exports and economic health of the dairy industry, it is critical that the U.S. Trade Representative and U.S. Department of Agriculture utilize USMCA’s stringent enforcement measures to ensure Canada and Mexico are held accountable to their trade commitments.

This is of particular importance given that Canada’s recently announced TRQ allocations run counter to USCMA commitments crafted to expand access to the Canadian dairy market. In the next few months, Canada will finalize its plans for future TRQ allocations and the elimination of its Class 6 &7 pricing programs, making it incumbent upon the U.S. to insist on full alignment with USMCA obligations.

“As USMCA enters into force, America’s dairy farmers and cooperatives are looking forward to a brighter future built on the foundation of this modernized trade agreement. Dairy is counting on this trade agreement, carefully crafted by USTR and with strong bipartisan support, to deliver tangible benefits to our industry during an uncertain time when our farmers need additional export markets and trade opportunities more than ever. To fulfill the promises of USMCA, the U.S. government can’t take its eyes off the goal of ensuring that this deal is fully enforced and implemented as intended,” said Jim Mulhern, president and CEO of NMPF.

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. It is critical that Mexico abide by these new requirements and refrain from introducing new trade mandates, such as product conformity assessments, that place a larger burden on U.S. exporters than on Mexican companies.

“After years of hard work by the Administration and Congress to bring this new agreement to fruition, the U.S. dairy industry is pleased to celebrate USMCA as it enters into force, mandating new access into Canada’s restrictive markets and establishing groundbreaking protections for American-made cheeses in Mexico,” said Tom Vilsack, president and CEO of USDEC. “If implemented in good faith and diligently enforced, USMCA will deliver positive benefits to dairy, and all of agriculture, as it facilitates the smooth flow of trade in North America. The implementation of USMCA’s provisions is
not the end of our work, it’s simply the beginning as we continue our efforts to break down global barriers to fair dairy trade and to ensure this agreement is fully enforced.”

According to the International Trade Commission, if USMCA is implemented as negotiated, U.S. dairy exports are projected to increase by more than $314 million a year. These dairy sales will have a positive effect on American farmers, bolstering dairy farm revenue by an additional $548 million over the first six years of implementation, according to industry estimates.




U.S. Wheat Organizations Welcome USMCA Entry into Force

The U.S.-Mexico-Canada Agreement (USMCA) is set to cross its final hurdle to entry today as the three countries certify the agreement’s “entry into force.” This final step means that all required legislative and regulatory changes needed to implement the agreement have been put into place or are scheduled to take effect.

  “A completed USMCA finally gets us past the uncertainty and that is welcome news to U.S. wheat growers,” said U.S. Wheat Associates (USW) Chairman and Paulding, Ohio, wheat farmer Doug Goyings. “Especially as we now see an opportunity for U.S. negotiators to take this as a gold standard agreement and launch negotiations with other countries, where U.S. wheat growers face tariff and non-tariff barriers.”

  “After years of hard work, we are excited to see USMCA be put into action. USMCA is not only vital for farmers but essential to help grow the rural economy,” stated NAWG President and Cass City, Mich., farmer Dave Milligan. “The wheat industry thanks Congress and the Administration for helping to put this trade deal into effect.”

  While there will be little direct change for U.S. wheat exports headed to Mexico, the agreement’s entry into force is a prime example of no news being an indicator of good news. The new agreement tightens coordination over sanitary and phytosanitary (SPS) rules and other non-tariff trade issues, but most importantly it places certainty back in the trading relationship with USW’s largest export market. In the marketing year 2019/20, which ended May 31, 2020, Mexico purchased more than 3.87 million metric tons (MMT) of U.S. wheat valued at $881 million.

  On the other side of the continent, Canada published the new rules for U.S. farmers hoping to deliver wheat into the Canadian grain handling system. Those new rules, allowing U.S. grown wheat brought across the border to Canadian grain elevators to be graded on a level playing field, are a significant step in furthering equal trade between the countries’ wheat growers. U.S. farmers wishing to take advantage of this new provision will need to grow wheat varieties registered in Canada’s Variety Registration System. 



NGFA commends, congratulates U.S., Mexico and Canada on entry-into-force of USMCA

The National Grain and Feed Association (NGFA) said the U.S.-Mexico-Canada Agreement (USMCA), which enters into force today, is a model 21st century trade accord that will contribute to growing, robust North American trade and serve as a strong foundation for the next generation of trade agreements.

NGFA commended and congratulated the U.S., Mexican and Canadian governments for negotiating a modernized North American trade agreement, as well as the legislative chambers in all three countries that ratified it by strong, bipartisan votes. For grains, oilseeds and their derived products, as well as animal food, the USMCA “preserves and strengthens market access while providing effective new mechanisms and safeguards to resolve sanitary and phytosanitary (SPS) issues that in the past periodically have disrupted trade,” said NGFA President and CEO Randy Gordon. “But the accord’s longest-lasting and most important impact may well be the solid framework it provides for the United States to negotiate significant new trade agreements with other countries, including Japan, Vietnam, the United Kingdom, Kenya and other nations on the African continent.”

NGFA noted that in addition to maintaining a tariff-free environment for most agricultural products, USMCA will help address non-tariff barriers, which are among the biggest challenges that distort and disrupt cross-border trade flows. Among other benefits, USMCA contains provisions that provide for: greater levels of regulatory coherence and cooperation; expediting resolution of adverse import checks; reducing the likelihood of trade disruptions in products of agricultural biotechnology; providing for expedited technical consultations to resolve SPS disputes; and requiring that SPS standards be grounded in science, based on proper risk assessments and implemented using prudent risk-management techniques.

NGFA will be working with its member companies and the U.S. government to monitor compliance with the agreement.