6 years ago AFBF
China is moving forward with retaliatory tariffs on U.S. products, including the 25 percent tariff on U.S. pork. China’s Ministry of Finance announced Sunday it will suspend duty reductions on select imported goods from the United States. In the announcement, China says the Trump administration’s steel and aluminum imports to the U.S. violate World Trade Organization rules, and “did not comply with the security exceptions provision.” China alleges the move by trump caused “serious damage” to China’s interests. China is targeting U.S. items, including fruits, along with the 25 percent tariff on U.S. pork. China says the nation is using its action as a method to “safeguard its interest,” as allowed by WTO rules. Last week, China’s Ministry of Finance said the action by the U.S. had “severely damaged” the multilateral trade system. China also made a World Trade Organization filing last week to seek consultations regarding the issue.
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Ag Trade Group: China Tariffs a Tax on Farmers
A U.S. agricultural trade group says the tariffs announced by China are a tax on U.S. agriculture. Farmers for Free Trade, a coalition formed to promote agricultural trade, says the tax stems from protectionist trade policies by the Trump administration. Max Baucus, the organization's Co-Chair, says the new tariff's "are a drag" on farmers struggling to make ends meet with a down farm economy and declining exports. However, Baucus warns, the move by China could be "the calm before the storm," suggesting that retaliation expected on agriculture "could be broader and deeper." Baucus says it's time for the U.S. to “deescalate both the trade rhetoric and actions” that have led to farmers being targeted. The retaliations include a 25 percent tariff on U.S. pork. Agricultural economists have cautioned that any tariffs on U.S. agricultural products could disrupt exports to China. U.S. farmers shipped nearly $20 billion of goods to China in 2017.
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U.S. Dairy Export Council Seeks Market Growth in China
The U.S. Dairy Export Council Monday announced a partnership with a university in China to grow U.S. exports in China. The Council has signed a memorandum of understanding with Jiangnan (Jong-lang) University to establish the U.S.-China Dairy Innovation Center at the university. Tom Vilsack, U.S. Dairy Export Federation President and CEO says the partnership is a "game-changing agreement" that will lead to opportunities that benefit both China and the United States. The partnership aims to encourage the development of China-friendly product formulations that incorporate U.S. dairy products and provide research with U.S. dairy products at the university. Vilsack says China is a “top priority market” for the U.S. dairy industry and calls the university one of the best food science schools in China. The partnership is part of the Next Five Percent initiative, an industry-wide effort launched in 2017 to increase annual U.S. dairy exports from the equivalent of about 15 percent of U.S. milk solids to 20 percent.
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Trump Administration to Revise EPA CAFE Standards
The Trump administration Monday announced it will revise fuel-efficiency and emissions regulations for cars and light trucks. Bloomberg News was the first to report the revision effort that the administration says is needed because the current regulations are too aggressive. The Environmental Protection Agency is also considering revoking a waiver for California to allow the state to set its own standard that exceed federal regulations. EPA Administrator Scott Pruitt says the agency would begin drafting new standards for 2022-2025. The Obama era regulations aimed to slash carbon emissions by boosting average fuel economy to more than 50 miles-per-gallon by 2025. Ethanol groups have supported the standards, known as CAFE standards, saying ethanol can help meet emissions targets. Growth Energy Monday responded saying high-octane fuels, such as ethanol blends like E25-E30, should be part of this discussion moving forward.
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Farmers Outline Harm from GIPSA Withdraw
A lawsuit brief filed on behalf of poultry farmers details the alleged harm from the Department of Agriculture’s GIPSA rule withdrawal. The Organization for Competitive Markets claims the Trump administration and Agriculture Secretary Sonny Perdue sided “with big ag over small farmers,” saying the GIPSA final rule would have helped level the playing field between farmers and agribusiness. In the filing, farmers from Alabama, Nebraska, and Kansas detailed the ways they claim market concentration has enabled large agricultural companies to retaliate against them for “standing up for their rights,” along with how the rules would have helped them seek legal assistance. Organization executive director Joe Maxwell says the group and more than 80 other farm organizations have called on the Trump administration to reinstate the Farmer Fair Practices Rules. Maxwell is a former Missouri Lieutenant Governor and is also the senior political director at the Humane Society Legislative Fund.
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DTN Poll Shows Farmers Becoming More Positive
Farmers are becoming more positive regarding their current situations, and the future. The DTN/The Progressive Farmer Agriculture Confidence Index finds farmers are increasingly indicating a positive outlook. The index reached its third highest level ever recorded in its latest survey, reaching 134.8, up almost 22 points from the December/January level and slightly above the overall level of spring 2017. The index, created in 2010, surveys farmers three times a year to determine their opinions about their current economic situation and about that situation in the year to come. Index levels above 100 are considered optimistic, those less than 100 are viewed as a pessimistic attitude. The findings seem rather opposite of conventional wisdom, as DTN points out the optimism comes as farmers continue dealing with lower commodity prices, large crop estimates, and trade worries.
