5 years, 10 months ago AFBF
An outlook presented to the Farm Credit Administration shows corn and soybean prices are projected to strengthen, boosting profit margins for crop farmers. The report shows profit margins are expected to decline for livestock producers though, as rising grain prices drive up feed costs, and Southwest pasture conditions deteriorate because of severe drought. The quarterly report also notes that uncertainties regarding agricultural trade policy and the Farm Bill will have a direct bearing on the farm economy. The outlook says producers across the farm economy will face stress on cash flows from rising interest rates and higher fuel costs, and declining cash rents will put downward pressure on farmland values. Meanwhile, for the first quarter of 2018, the Farm Credit System reported strong earnings, higher capital levels, and a favorable portfolio credit quality. Overall, The Farm Credit Admiration considers the system as financially strong and says it “remains safe and sound.”
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House Faces Friday Deadline to Pass Current Farm Bill
The U.S. House faces a Friday deadline to revote on the current farm bill proposal. As of Monday, the farm bill, passed out of committee with Republican support only, was not on the schedule to be considered on the house floor. However, House Majority Leader Kevin McCarthy, who publishes the weekly schedule, did include: “Possible consideration of legislation related to border security and Immigration,” and added that “Additional legislative items are possible.” The Freedom Caucus, a group of 30-some Republicans, blocked the farm bill from advancing by voting against it, demanding a vote on immigration. Meanwhile, the Hagstrom Report says prospects for immigration legislation in the House remained murky amidst confusion over President Donald Trump’s position. The Senate could bring its version of the farm bill to a vote as early as this Thursday, and leadership has vowed to complete the farm bill process before the July Fourth recess.
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Secretary Perdue Comments on Canada Dairy Issue
While traveling to Canada last week, Agriculture Secretary Sonny Perdue and his Canadian counterpart spoke in unison supporting trade. Perdue visited the farm of Canada’s Agriculture Minister Lawrence MacAulay, Friday. Speaking with reporters after the event, Perdue discussed Canada’s Dairy Supply Management System, targeted by the U.S. dairy industry as a priority to address through the North American Free Trade Agreement renegotiation. Perdue told reports that it was not the United States’ place to tell Canada it could not have a supply management system. However, he said Canada’s system cannot result in oversupply of some products on the global market that depresses prices, according to Reuters. MacAulay said the two were not ready to signal what changes might be included in NAFTA or supply management “because that’s the job for the people at the table.” But, as leadership of Canada and the U.S. continue a back-and-forth trade spat, the president of the Canadian Federation of Agriculture said of Perdue and MacAulay: “They might be the two people who can help find common ground.”
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Senate Bill Creates Group to Study Trucking Regulations
Legislation introduced last week in the U.S. Senate would revise existing trucking regulations to make the rules more flexible for drivers hauling livestock, according to the National Pork Producers Council. The “Modernizing Agricultural Transportation Act” would establish a working group at the Department of Transportation to examine the federal Hours of Service rules and the Electronic Logging Device regulations. The Hours of Service rules limit commercial truckers to 11 hours of driving time and 14 consecutive hours of on-duty time in any 24-hour period. Once drivers reach that limit, they must pull over and wait ten hours before driving again. Electric Logging Device’s record driving data, to enforce the rules. The legislation requires the Secretary of Transportation to establish a working group within 120 days to identify obstacles to the “safe, humane, and market-efficient transport of livestock, insects, and other perishable agricultural commodities” and to develop guidelines and recommendations for regulatory or legislative action to improve the transportation of those commodities.
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FDA to Hold Fake Meat Public Meeting
The Food and Drug Administration is seeking public comment on fake meat, or foods produced using animal cell culture technology. The FDA will hold a public meeting next month to gather comments. The National Cattlemen’s Beef Association says the organization will participate in the public meeting, and will advocate for Department of Agriculture oversight of lab-grown fake meat products. NCBA claims that the FDA announcement disregards the authorities granted to USDA under the Federal Meat Inspection Act, as well as USDA's “significant scientific expertise and long-standing success in ensuring the safety of all meat and poultry products.” Under the current regulatory framework, NCBA says the FDA plays an important role in terms of ensuring the safety of food additives used in meat, poultry and egg products. All additives are initially evaluated for safety by the FDA, but ultimately USDA’s Food Safety and Inspection Service maintains primary jurisdiction. The meeting is planned for July 12th, with a comment period open through September.
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Perdue to Keynote United Fresh Event
Agriculture Secretary Sonny Perdue will join United Fresh attendees as the opening keynote speaker on next week in Chicago. United Fresh says Perdue will address the key issues facing the produce industry, from immigration reform and the need for a legal workforce to the North American Free Trade Agreement, and the need to retain a fair international trade framework for agriculture. Labor issues, and trade, such as NAFTA, are top issues for United Fresh members. Secretary Perdue will speak at the United Fresh 2018 Keynote Breakfast Tuesday, June 26th, during the United Fresh 2018 convention. United Fresh President and CEO Tom Stenzel called Perdue a “proven leader” for agriculture, applauding his work to help “the administration and Congress both to understand the importance of feeding the world.”
