5 years, 9 months ago AFBF
Soybean farmers in Canada are feeling the impact of the U.S.-China trade war as soybean prices decline. CNBC reports that while Canadian soybean farmers could see an increased market share from importing nations, experts say the current soybean market plays a much more significant role. Since April, soybean futures have dropped nearly 20 percent in the United States, and Canadian soybean prices are closely tied to the U.S. futures market. A market expert from Canada says “we are being caught in the crossfire” of the U.S.-China dispute. A market advisor based in Winnipeg claims “North America has really become one large agricultural market with no border,” adding all soybeans grown in Canada are priced “basically directly off the U.S. futures market." China has forecast its total soybean imports will be lower for the next crop year due to the new tariffs. China is also encouraging the use of alternative animal feeds, as China currently buys about two-thirds of the world's soybean exports, using most of it as feed for the roughly 700 million pigs in the country.
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Ag Shippers Say Trade War Costly
Union Pacific CEO Lance Fritz says trade disruptions are threatening to undermine an otherwise robust economy. The rail company, headquartered in Omaha, Nebraska, told the Omaha World-Herald that the current trade disruption: “Affects the 7,300 communities Union Pacific serves.” Specifically, the North American Free Trade Agreement renegotiation effort is harming U.S. railways. About 40 percent of Union Pacific traffic originates or ends outside the United States. And the railroad handles 70 percent of the business going in and out of Mexico. Union Pacific is also feeling the impact of the steel and aluminum tariffs on China as it plays a role in importing products from China. In a speech to the National Press Club in Washington, D.C. last week, Fritz said he applauds the administration for attempting to level the playing field with China, but says the best way to do so is through “a united front with allies,” and modernizing trade agreements. On the overall economy, Fritz says recent trade policies are “creating uncertainty that’s going to cause capital investment to slow down.”
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U.S. Pork Calls for Level Playing Field on Regulatory Issues
The National Pork Producers Council says pork producers now face a “regulatory land grab” by the U.S. Food and Drug Administration. Bearing the brunt of global trade retaliation, NPPC called on the Department of Agriculture to assert its “proper oversight” of two emerging issues: laboratory-produced cultured protein and gene editing in livestock production. The comments came after the FDA seemed to take the reins of the regulatory framework last week. The FDA held a public meeting to address regulatory oversight of cultured products, that NPPC says are “misleading” by using terms such as “clean meat” and “prime beef” in packaging prototypes. NPPC President Jim Heimerl (Hi’-merle) said FDA oversight without USDA regulation would allow the cultured meat industry to "avoid rigorous inspection, labeling scrutiny and other regulations faced by livestock agriculture."
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USDA: $2 Billion Available in 2017 Disaster Funds
Agriculture Secretary Sonny Perdue Monday announced agricultural producers affected by hurricanes and wildfires in 2017 now may apply for assistance to help recover and rebuild their farming operations. The program, known as the 2017 Wildfires and Hurricanes Indemnity Program, or 2017 WHIP, was authorized by Congress earlier this year by the Bipartisan Budget Act of 2018. Through the authorization, USDA has made available $2 billion in disaster funding for eligible farms. Secretary Perdue says the objective of the funding is to "get relief funds into the hands of eligible producers as quickly as possible." Signup is underway and will continue through November 16, 2018. Additional payments will be issued, if funds remain available, later in the year. Producers who may be eligible are encouraged to contact their local USDA service center.
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USDA Investing in Upgrading Rural Water Systems
The Department of Agriculture is investing $267 million in 103 infrastructure projects across the nation to upgrade water and wastewater systems in rural communities. Announced by Assistant to the Secretary for Rural Development Anne Hazlett Monday, the program makes investments in 35 states through the Water and Waste Disposal Loan and Grant program. The funds can be used to finance drinking water, stormwater drainage and waste disposal systems for rural communities with 10,000 or fewer residents. In the Announcement, Hazlett noted that: "Robust, modern infrastructure is foundational for quality of life and economic opportunity." In funding for fiscal year 2018, USDA says Congress provided a historic level of funding for water and wastewater infrastructure. The 2018 Omnibus spending bill includes $5.2 billion for USDA loans and grants, up from $1.2 billion. Learn more and find a list of projects at visit www.rd.usda.gov.
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Nutrien to Acquire Agrible
Nutrien announced recently that it has entered into an agreement to acquire Agrible for $63-million. Agrible is a digital agriculture company that offers a broad set of agronomic and on-farm advisory tools, data science capabilities and predictive analytics that connects growers with agricultural, food and consumer products companies to “measure, benchmark and empower sustainable crop production.” Agrible's platform is currently being utilized by growers and sustainability partners across numerous global geographies, with the U.S. representing the company's largest commercial market. Nutrien is self-described as the world's largest provider of crop inputs and services and produces and distributes over 26 million metric tons of potash, nitrogen and phosphate products world-wide. The transaction is expected to close at the end of July.
