6 years, 6 months ago American Farm Bureau Federation
Froman Says NAFTA Withdraw a Very Real Prospect
Former U.S. Trade Representative during the Obama administration Michael Froman says a U.S. withdrawal from the North American Free Trade Agreement is still “a very real prospect.” Froman spoke last week in Washington, D.C. at an event hosted by the University of California. Politico reports Froman said: "There certainly is a desire by the president to withdraw from something, and NAFTA and the Korea agreement appear to be at the top of his list." His comments came as negotiators from the U.S., Canada and Mexico are holding round three of NAFTA renegotiation talks. The current round of negotiations, held in Canada, is set to conclude later this week. NAFTA is worth billions of dollars in exports to U.S. agriculture, and a withdraw from the agreement would put those exports in jeopardy.
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Trade Officials Talks KORUS
Trade leaders from South Korea and the United States met for the first time last week to discuss the U.S.-Korea Free Trade Agreement. The Trump administration has targeted the free trade agreement for renegotiation, or even termination. A South Korea-based news agency reports U.S. Trade Representative Robert Lighthizer met with South Korea’s Trade Minister to “discuss ways to move forward” with KORUS. In a statement, South Korea says the nation will hold talks with the U.S. “with an open attitude to maximize the mutual benefit of KORUS.” Washington has blamed KORUS for its growing trade deficit. But South Korea argues the deficit is due to macroeconomic factors, and the agreement has benefited both sides. President Donald Trump has called the agreement a "horrible" trade deal. However, Trump also met with South Korea's President last week and said they would "try and straighten out” the pact.
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Rural Mainstreet Index Lower
The Rural Mainstreet Index fell to its lowest level of the year last month as farmland prices declined and agriculture equipment sales were dismal. The index, compiled by Nebraska’s Creighton University, surveys bank CEO’s in ten Midwestern states. Overall, the index, which ranges between 0 and 100, slumped to 39.6, its lowest level since December 2016, and down from 42.2 in August. More than half of respondents reported they are restructuring farm loans while approximately 18 percent indicated their bank had increased collateral requirements. The confidence index, which reflects expectations for the economy six months out, increased to a weak 36.1 from 35.6 in August, indicating a continued pessimistic outlook among bankers. Organizer Ernie Goss says: “Concerns about trade, drought conditions in portions of the region, and low agriculture commodity prices impaired bankers’ economic outlook for the month.”
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New Zealand Triples U.S. DDGS Purchases
Record milk production in New Zealand has led the nation to triple the amount of imported U.S. distiller’s dried grains with solubles. The U.S. Grains Council reports that the 2017 milk supply in New Zealand is expected to reach 21.9 million tons, surpassing the prior record of 2014, thanks to higher-expected cow numbers and optimal pasture conditions. With further opening of the market for U.S. exports, the Grains Council says grain buyers significantly increased purchases due to local crop failures and local market limitations. New Zealand has purchased 113,000 metric tons of U.S. DDGS in the 2016/2017 marketing year, up significantly from the 37,000 tons imported the same time the year prior. The Grains Council says that while this market is currently small, these sales represent the potential for demand growth. A spokesperson with USGC says: “We expect to see strong demand for U.S. DDGS into this market in coming years.”
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Arkansas Moving Closer to Seasonal Dicamba Ban
Arkansas is now one step away from establishing a seasonal dicamba ban. The Arkansas State Plant Board advanced a proposal last week saying the use of dicamba should be prohibited from April 16th to October 31st, 2018. The move comes after farmers complained that soybeans and other crops were damaged when the herbicide drifted away from where it was sprayed this summer. However, another group of farmers petitioned the state against the ban. The St. Louis Post-Dispatch reports Monsanto previously submitted a petition asking the board to reject the proposed cutoff date for sprayings and warned the company might file a lawsuit if the board denied the request. A Monsanto spokesperson told the newspaper “volatility is not a problem” and that science did not support the plant board's decision. However, experts say dicamba is risky because it can vaporize and drift across fields after they are sprayed.
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Tyson Considering Alternative Sites for Kansas Processing Facility
Tyson Foods Inc. is mulling as many as 20 alternative sites in Kansas after Leavenworth County, Kansas withdrew plans to issue $500 million in bonds for a proposed facility in Northwest Kansas county. Kansas Agriculture Secretary Jackie McClaskey last week said as many as 20 other communities in Kansas had expressed interest in becoming the new location for the $320 million facility. McClaskey says that the long-term effect if Tyson moves the plant and its 1,600 jobs to another state could push other agricultural companies away from Kansas. However, she believes a new deal can be reached to keep the new Tyson complex in the Sunflower State, according to meat industry publication Meatingplace. Meanwhile, the Iowa Economic Development Authority last week voted to award $2.4 million in tax benefits to help Tyson expand and renovate its Waterloo, Iowa beef and pork plant.
