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Chinese Ambassador Comments on Possible Soybean Trade Sanctions

6 years ago American Farm Bureau Federation

As the world’s two largest economies appear to be moving closer to a possible trade war, U.S. Ambassador Terry Branstad is warning China about the consequences of trade sanctions on U.S. soybeans. Branstad told Bloomberg Television that any attempts to cut down on U.S. soybean imports would hurt Chinese consumers more than it would American farmers. The crop provides a key source of protein, including as feed for hogs, to the country’s growing middle class. Branstad was asked about possible retaliation on soybeans and says it wouldn’t make sense and would only hurt Chinese consumers. “Ultimately, the Chinese will realize we should work together on our common issues and retaliation is not the answer,” he says, “instead, we need collaboration and cooperation to address issues that have been building for some time.” China is the world’s biggest importer of soybeans and new measures against imports would result in an escalation of trade tensions. Curbs would hit Midwestern farmers hard in states that are crucial to President Trump’s efforts to keep Republicans in control of Congress after the general elections. China uses roughly one-third of the American crop to feed more than 400 million pigs. The U.S. trade deficit with China was a record $375 billion last year.

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Ag Coalition Website Launched to Stop CA Glyphosate Regulation

A national coalition of farmers and agriculture networks, known as The Ag Defense Alliance, launched a new website providing resources and information about its case against California’s unjustified Prop 65 listing of glyphosate. Chandler Goule (Gool) is the Chief Executive of the National Association of Wheat Growers. He’s listed as the lead plaintiff in the case against California. He says the new site will be used to communicate the importance of glyphosate as an important tool for farmers. “Glyphosate is a safe to use and effective crop protectant used by growers to provide an abundant, safe, and affordable supply of food,” Goule says. “Our coalition understands the important of glyphosate to the agricultural economy and we’re committed to communicating with all interested stakeholders as we fight the unjustified Prop 65 glyphosate listing.” The Fix Prop 65 website provides background information on the case, research, farmer testimonials, as well as information about how farmers use glyphosate. It also provides information about what the scientific community has to say about the herbicide. A California district court issued an injunction against the listing until it issues a final ruling on the matter.

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Ag Groups Get a Face-to-Face with USTR Negotiator

The U.S. Trade Representative’s new chief agricultural negotiator opened his doors on Friday to major agriculture industry groups. Greg Doud invited them in for meetings to discuss priorities and concerns about the North American Free Trade Talks and other trade negotiations. Farm groups representing commodity producers and agricultural processing associations likely expressed a lot of fears that tariffs against China and other countries will only invite punishing retaliation that would seriously hurt U.S. exporters. Doud met with commodity groups in one meeting and agricultural processors in the other. An industry observer told Politico that, “If I were Greg (Doud), I would certainly want to say I’d given all those groups an opportunity to air their concerns and hear directly from him before he was put into the mix of having to make some pretty important decisions.” Politico says frustrations are running both ways. The ag industry’s public campaign against President Trump’s trade decisions has frustrated U.S. Trade Representative Robert Lighthizer, who says he’s “tired of it.” He adds that the industry efforts have been “unhelpful to the administration’s trade agenda,” sources told Politico.

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Microsoft Working to End Broadband Gap in Rural America

Microsoft is working to close the broadband gap in rural America. However, a DTN report says the company needs the help of rural resident’s to accomplish that task. Shelly McKinley, Microsoft general manager of technology and corporate responsibility, spoke recently at the Nebraska Rural Futures Institute. She says high-speed internet is now a necessity of life, while comparing the push to expand access across rural areas to the push to bring electricity to rural areas in the 20th century. Microsoft has put together a plan on how to improve rural connectivity, called the Rural Airband Initiative. Among the methods that Microsoft wants to use to get the internet out to rural areas is to use TV white space spectrum. McKinley says white spaces are the grainy channels on your TV that aren’t being used by broadcast channels. The Federal Communications Commission oversees the white space spectrum, and Microsoft wants the FCC to ensure the continued use of these channels, as well as provide more spectrum for similar use. A big advantage of using white space spectrum is the signal has the ability to go through natural barriers, such as trees. Microsoft is asking rural residents to contact their elected officials and ask them to push the FCC for more white space access to help close the broadband gap.

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Farmers for Free Trade Continues Ad Campaign Aimed at President Trump

Farmers for Free Trade released another television ad on Thursday as part of the effort to highlight the damaging impact retaliation from a series of new tariffs will have on critical ag exports. The new spot features Indiana corn and soybean grower Brent Bible, whose soy operation relies on exports to China, as do many more across the country. “I’m supportive of the Trump administration,” he says in the spot, “but I have concerns about current actions that have been taken on trade and tariffs. The fact that China is our number one soybean customer makes us very vulnerable. Our farm, and many others like ours, will be the first casualties in a trade war.” The spot will run for the next two weeks on cable news channels like CNN, Fox, and MSNBC. China has already announced $3 billion in retaliatory action, much of which was aimed at American agricultural exports, including fruit and wine. Farmers for Free Trade Co-Chair Max Baucus says, “China is looking to hit us where it hurts. That’s why they’re going after American ag exports.”

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Southwest U.S. Producers Facing an Expanding Drought

An Associated Press Report says drought has begun to tighten its grip on a large area of the southwestern United States. Farmers, ranchers, and water managers are getting ready for what’s expected to be more warm and dry weather through the spring. The Federal Drought Map shows conditions worsening over portions of New Mexico and Arizona. All of Nevada and Utah are affected by some level of drought as well. The drought map shows Oklahoma setting up for what looks to be the worst drought conditions in the U.S. The Panhandle is an area dominated by agriculture, and the amount of land that’s under exceptional drought has more than doubled in size. Cole Perriman of the Oklahoma Water Resources Board says, “We’re in the irrigation period but it would be really fantastic to get some precipitation out of those areas.” Crop conditions in the drought-plagued areas are declining as extreme drought spans from Kansas and Oklahoma to California. Three-quarters of the winter wheat crop in New Mexico is in poor to very poor condition as meaningful precipitation has been almost non-existent since last fall. Arizona ranchers are concerned as poor range conditions have left their stock tanks dry.

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