5 years, 3 months ago American Farm Bureau Federation
The U.S. Senate Thursday will consider two proposals to end the government shutdown, but both are expected to fail. Still, many say the move is an opening of negotiations in Congress to reach an agreement. It also marks a shift from Senate Leader Mitch McConnell who previously said the Senate would not consider bills that are destined fail. In December, he said the Senate would only consider bills that would produce a solution to all parties and be supported before a vote. The Senate will consider a Republican backed proposal to reopen the government, along with the Democratic-backed and House passed proposal. The votes come on the same day the Department of Agriculture is reopening Farm Service Agency offices after recalling more 9,000 workers to provide services to farmers, which farmers have lacked during the shutdown.
************************************************************************************
USDA Exploring Options to Continue Food Stamps Through Shutdown
The Department of Agriculture is exploring ways to continue the Supplemental Nutrition Assistance Program if the government shutdown lingers through February. USDA has already claimed to find authority to reopen Farm Service Agency offices this week, and with SNAP benefits for March uncertain, the Trump Administration is seeking a way to keep recipients receiving benefits. USDA spokesperson Tim Murtaugh told Reuters “We continue to examine our options for SNAP benefits in March.” While this is the longest government shutdown, no shutdown of the federal government has ever lasted long enough to stall SNAP benefits. USDA released the February benefits early, allowed by a legal provision that allowed money to be allocated within 30 days of a shutdown, but the Trump administration has not identified publicly a mechanism to extend the program into March. USDA says the best solution is “for Congress to pass appropriations legislation in a form the President can sign.”
************************************************************************************
Senate Follows House on USDA Relocation Plan
The 2019 Senate agriculture appropriations bill follows House language in expressing concern of the Department of Agriculture’s plans to relocate the National Institute of Food and Agriculture out of the Washington metropolitan area. The language also says it is “appropriate” for the Economic Research Service to stay in the Research, Education and Economics mission area rather than move to the Office of the Chief Economist, according to the Hagstrom Report. The bill specifically expresses concern “about the unknown costs associated with the proposed move,” and USDA is directed to include all cost estimates for the proposed move of the two agencies, as well as a detailed analysis of any research benefits of their relocation. The House bill released last week contains similar language. The move indicates that both the House and Senate agree on opposing the moves, at least until USDA consults with Congress about the proposal.
************************************************************************************
China Pork Prices Below Cost of Production
The price of pork in China has dropped below the cost of production. New data reported by china-based CXLive shows the price of lean pork meat in northeastern China and Inner Mongolia, two of the top pork-producing regions, were at 8.5 yuan, $1.25 U.S., and 7.5 yuan per kilogram, respectively, as of Tuesday. On average, a kilogram of pork in China costs 12.5 yuan to 13 yuan to produce. Prices have been plummeting since farmers in China rushed their animals to market last fall amid the African swine fever outbreak. By mid-December, the price of pork in China fell an estimated 31 percent. Farmers are not restocking to full capacity currently, as the threat of the disease continues, which is likely to contribute soon to a sharp increase in pork prices later this year once supplies dwindle. What could be a future opening for U.S. pork, however, is currently blocked in the tit-for-tat trade war between the U.S. and China.
************************************************************************************
Dairy Industry Research Shows Consumers Thoughts on Plant-Based Milk Imitators
New consumer research supported by the dairy industry shows Americans widely disapprove of dairy terms being used by fake-milk producers, as well as confusion on the nutritional content of milk versus plant-based imitators. The national survey conducted by a global market research and consulting firm, found only 20 percent of all consumers said plant-based beverages should be labeled milk, as U.S. dietary guidelines do not recommend imitators as a substitute for dairy milk. Even when limited to buyers of plant-based drinks, support for mislabeling rose to only 41 percent. Jim Mulhern, president and CEO of the National Milk Producers Federation, says the data further proves that “FDA must enforce its existing regulations.” The study also found that more than one-third of consumers erroneously believe plant-based beverages have the same or more protein than dairy milk. However, NMPF points out that milk has up to eight times more protein than its imitators. The online poll commissioned by Dairy Management Inc. was conducted October of last year and surveyed 2,006 adults nationwide.
************************************************************************************
Americans to Eat More than 1.3 Billion Chicken Wings for Super Bowl
The National Chicken Council Wednesday released its annual Chicken Wing Report estimating Americans will eat an all-time high of 1.38 billion wings during the Super Bowl weekend, featuring the Los Angeles Rams and New England Patriots. The figure is up two percent, or about 27 million wings, from 2018. The report points out that the record number of wings is enough to circle the Earth three times, and is four wings for every man, woman and child in the United States. Also, the Council announced it is petitioning President Trump and Congress to declare the Monday after the Super Bowl a federal holiday. The petition is available on Change.org. National Chicken Council spokesperson Tom Super concluded, “Whether you’re a fan of the left wing or the right wing, there’s no debate – or controversial missed calls – about America’s favorite Super Bowl food.”
************************************************************************************
During the negotiations to hopefully bring an end to the trade war between China and the U.S., China committed to and has bought American soybeans over the past week. Joe Vaclavik is founder and CEO of Standard Grain in Chicago, who says the soybean purchases have had some effect on commodity markets…
“U.S. shipments to China were the best in 10 months last week. We loaded six vessels to China, I think four were out of the Gulf, four out of the PNW, so it’s the best we’ve seen in a long time. So, is that a positive? Yeah, I mean it’s certainly better than the alternative, which would be nothing.”
Will the purchases continue? It’s hard to say, simply because this isn’t the typical time of year for China to buy beans from the U.S…
“It’s the end of January, the Brazil crop is coming out early, it’s going to be down from last year but it’s not going to be a disaster. The Argentina crop is going to be up sharply from last year. So, the question is this; we’ve got a trade war. During the trade war, is China going to make large, contra-seasonal purchases of U.S. soybeans. Despite the fact that one, they don’t usually make them this time of year, and two, they’ve got a 25 percent tariff on beans. It doesn’t appear likely to me, it really doesn’t.”
The other question is just how much Chinese demand is there for soybeans right now. Chinese government officials say their soybean imports will be off 11 percent from last year. Vaclavik says there are a number of possible reasons for demand drop…
“Some people would point to the African Swine Fever and they say that it’s decimated the hog herd to a point that protein needs are falling. Other people would say that the country’s economy is slowing and that’s the reason why. Other people would say that it’s because of the trade war, because of the tariffs. and China is shifting to other protein.”
Vaclavik says the falling demand could be a result of any of those factors, or even a combination.
