6 years ago American Farm Bureau Federation
Farm Bureau President Zippy Duvall says the release of the House Agriculture and Nutrition Act of 2018 assures farmers and ranchers that congressional leaders recognize the challenges Ag is facing. He says, “Farm Bureau is pleased to see meaningful adjustments to the current farm bill’s dairy and Agriculture Risk Coverage programs, as well as new provisions for cotton farmers included in the commodity title.” National Farmers Union President Roger Johnson says he appreciates the committee’s hard work in putting together the bill. “Congressional leadership has severely hamstrung the committee’s ability to address the six-year, 50 percent decline in the farm economy,” Johnson says. “Family farmers deserve to be a priority and have a safety net that addresses the current economic conditions.” The National Cattlemen’s Beef Association was pleased that the Ag Committee authorized the Foot and Mouth Disease vaccine bank, which they say is vitally important to the safety of the livestock industry.The American Soybean Association thanked the committee for including authorization for the Foreign Market Development Program and for funding the Market Access Program.
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Asian Nations Cautious About the U.S. Back in TPP
Japan, Australia, and New Zealand were cautious in their reaction to the news that U.S. President Trump might reopen talks on the Trans-Pacific Partnership. It’s the same deal he pulled America out of as soon as he took office. An Associated Press report says Japanese officials welcome the move if it means Trump is recognizing the importance of the agreement. New Zealand’s Trade Minister says his country isn’t blind to the benefits of trading with the world’s largest economy. However, David Parker says U.S. participation is theoretical, because “it’s not clear yet how real this is, given the different views to the administration.” His Australian counterpart warns that there won’t be a lot of interest in substantial renegotiation among the 11 countries in TPP. The agreement puts agricultural exporters in the agreement at an advantage over their American counterparts, and the Australian Minister says, “I think that’s one of the reasons why the United States is taking a second look at possibly rejoining the TPP.”
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Argentina Officially Open to U.S. Pork
The U.S. and Argentina finalized an export certificate allowing the American pork industry to ship products to the South American country. The National Pork Producers strongly supported and gave extensive input into the move. NPPC President Jim Heimerl (Hi’-merle) says Argentina has tremendous potential for U.S. pork exports. “This is great news for American pork producers,” he says, “who last year exported almost $6.5 billion worth of pork around the world.” Argentina, which has a de facto ban on U.S. pork, has a population of more than 44 million and a per capita income of over $17,000 a year, which is higher than Mexico’s. That makes Argentina an attractive market for U.S. pork. Iowa State University economist Dermont Hayes says per capita pork consumption has increased from 2 pounds in 2005 to 26 pounds this year. The Argentinian pork industry estimates that number will fall between 35 and 44 pounds by 2020. The new opening in the Argentinian market represents the first time in 25 years that U.S. pork will be allowed into the country, which has the potential to be a $10 million-a-year market.
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Rabobank Says Domestic Dairy Demand to Climb in 2018
Domestic demand for dairy products like natural cheese and butter, along with premium dairy products, should rise in the second half of 2018. That prediction comes from Rabobank in its Dairy Quarterly 1 Report. “The stronger economic growth is projected to come mostly from the recent tax policy change, which translates to stronger dairy demand through increased food service and retail sales,” the report says. The challenge is that dairy product stocks are still high and burdensome. The Rabobank report says nonfat dry milk powder stocks are high at 154,000 tons, which is 50 percent more than last year and the highest number since 2005. Butter stocks are a few percentage points higher than last year and cheese stocks are up seven percent. Rabobank also notes that U.S. dairy imports are down, following a trend that began last year. The report says Rabobank also expects dairy exports to be more competitive as U.S. prices are below international levels and will be helped by a persistently weak dollar. “The optimistic domestic demand outlook, together with slowing milk production levels, could curb the exportable surplus during the second half of 2018,” the report concludes.
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Exxon, Chevron Ask EPA for Biofuel Blending Exemptions
Energy giants Chevron and Exxon have asked the Environmental Protection Agency for waivers from the nation’s biofuels program that have typically been reserved for small refiners in financial trouble. A Reuters report says that will only add fuel to the fire in the debate between the oil and ethanol industries over how the Trump Administration should handle the RFS. An EPA source says the agency has already issued an unusually high number of 25 waivers to small refineries in recent months. However, the agency won’t name the companies that have been granted waivers, citing concerns over private company information. Both Chevron and Exxon are among the most profitable energy companies in the world. They’ve asked the EPA to grant waivers for their smallest companies, including a Chevron refinery in Utah and an Exxon operation in Montana. If the exemptions are granted, it would free the refineries from having to hand in blending credits earned or purchased in 2017, which are coming due this year. Five Republican senators, including Chuck Grassley and Joni Ernst from Iowa, wrote in a joint statement saying, “EPA is hiding behind poor excuses about proprietary business information to shield big oil companies from public scrutiny.”
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Biodiesel Stakeholders Unite Over RFS Concerns
The National Biodiesel Board joined the American Soybean Association and the National Renderers Association in urging President Trump to keep his promises to rural voters. Kurt Kovarik, NBB vice president of federal affairs, says recent actions by the Environmental Protection Agency have undermined the president’s commitment to support consumer access to domestic renewable fuels, as well keeping the Renewable Fuels Standard strong. “The EPA’s decisions to give large, profitable refiners free passes are hurting biodiesel producers, renderers, and farmers,” says Kovarik. “If the president is serious about keeping his promises, he needs to pay attention.” The three organizations sent a letter to the administration, thanking the president for his support, while also expressing concern about the seemingly inconsistent messages coming out of the administration. The letter goes on to say, “Contrary to your steadfast support, the EPA has undermined the RFS through recent actions granting so-called “hardship” exemptions designed for small refiners. The actions taken by the EPA undermine the integrity of the RFS and stand in direct contrast to your pledge of support.”
