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U.S. Signs KORUS, Perdue Issues Statement

5 years, 6 months ago American Farm Bureau Federation

“Put this one in the bag and keep hunting for more,” says Agriculture Secretary Sonny Perdue of the signing of an updated trade agreement between the U.S. and South Korea. President Trump signed an updated United States-Republic of Korea Free Trade Agreement, known as KORUS, Monday. Perdue says of the agreement that it adds to the “the momentum building for President Trump’s approach to trade.” In his statement, Perdue says that he is optimistic “the dominoes will continue to fall,” referring to the North American Free Trade Agreement, and new agreements with the European Union, Japan and even China. The new KORUS agreement is a “better deal for the entire United States economy, including the agricultural sector,” according to Perdue. The White House says the agreement is a sign that President Trump has “fulfilled his promise” to fight for American workers and businesses in an amended trade deal with South Korea.

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On-time Farm Bill Hopes Dim

Hopes of an on-time farm bill are diminishing as lawmakers now have less than a week to finish a bill, get it passed by both chambers again, and on the President’s desk for signature. The current farm bill expires September 30th, and the conference committee still must agree on changes in the conservation programs of the farm bill and the nutrition title. Top agriculture lawmakers don’t seem to be concerned, but farm groups are sounding the alarm bells as Congress runs out of time. Senate Agriculture Committee leadership last week said the real deadline that would impact farmers is in December. But, as Politico points out,  many programs would be left in limbo regarding funding. For instance, mandatory funding is available for conservation programs, but without a farm bill, the Department of Agriculture’s authority to operate the programs expires. The bill’s Foreign Market Development program, deemed critical to developing new trade markets, could also lose funding. Lawmakers have yet to make any serious considerations towards extending the current farm bill to allow Congress time to deliver the next.

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U.S., Canada Talks on NAFTA Offer Little Progress

Stalled talks between the U.S. and Canada regarding the North American Free Trade Agreement are expected to continue this week, as the U.S. desires to reach a deal by September 30th. Informal talks are likely over the next few days, according to Reuters, as global attention turns towards a U.N. meeting this week. Canadian Prime Minister Justin Trudeau (True-doh) says nothing had formally been arranged for this week, however, leaving further uncertainty as to whether the U.S. will continue to seek a trilateral agreement. The U.S. appears likely to forge ahead with a U.S.-Mexico only trade agreement until the U.S. can reach an agreement with Canada beyond the September 30th deadline. Trudeau offered some pushback over the weekend, saying Canada would not be rushed into reaching an agreement and that he would not sign “a bad NAFTA deal.” Dairy market access remains a sticking point between the two nations, among a handful of other remaining issues.

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Escalating Trade War with China Will Increase Damage to Farmers

The escalating trade war between the U.S. and China continues to pose long-term harm for U.S. soybean farmers. The American Soybean Association says recent decision by the Trump administration to impose ten percent tariffs on an additional $200 billion in Chinese imports—and China’s subsequent retaliation on $60 billion of U.S. products—deepens and prolongs the trade war between the two countries, posing even more adverse consequences for American soybean farmers. ASA points out that since June, the price of U.S. soybeans at export terminals in New Orleans has dropped 20 percent, from $10.89 to $8.68 per bushel. Farm-gate prices have fallen even further. During the same period, the premium paid for Brazilian soybeans has increased from virtually zero to $2.18 per bushel, or $80 per metric ton. ASA has urged the Administration to quickly end trade disputes, reconsider joining the Trans-Pacific Partnership, and has asked Congress to double funding for the Foreign Market Development and Market Access Programs for export promotion activities.

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USDA Adds Shelled Almonds and Fresh Sweet Cherry to Trade Aid Package

Late last week, the Department of Agriculture announced the inclusion of shelled almonds and fresh sweet cherries to the trade relief package. The relief package provides growers with funding through the Market Facilitation Program to help offset harm producers are facing by the administration’s trade agenda. Producers of shelled almonds and fresh sweet cherries may apply for payments at their local Farm Service Agency. The initial payment rates for shelled almonds is three cents per pound, and the rate for fresh sweet cherries is 16 cents per pound. USDA also has expanded the timeline for producers with whom the August 1, 2018, date does not accurately represent the number of head of live hogs they own. Producers may now choose any date between July 15 to August 15, 2018, that correctly reflects their actual operation. Market Facilitation Program applications are available online at www.farmers.gov.

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Lower Pork Prices Helping Demand

Pork production is accelerating, prices are lower, and demand is improving. New Data from the Department of Agriculture shows that lower pork prices this year have encouraged domestic and foreign consumers to buy more U.S. pork. Meat industry publication Meatingplace reports 2018 total cold stocks of pork have remained at or below three and five-year averages so far, and large supplies of hogs are expected to keep hog prices significantly below year-ago levels through at least the first half of 2019. Even with the current trade climate, July pork exports were almost nine percent higher than a year earlier. Third-quarter pork exports are expected to be 1.3 billion pounds, almost six percent higher than in the same period a year ago. Pork exports were stronger despite lower shipments to Mexico and China, both of which have imposed retaliatory tariffs on U.S. pork products. July exports were supported by strong shipments to South Korea, Japan, the Philippines, Australia, and Colombia. USDA will release its quarterly Hogs and Pigs report this Thursday, providing more pork production insight.

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EPA RFS Waiver Website Doesn’t Include Justification

A new website by the Environmental Protection Agency doesn’t satisfy all sides of the hardship waiver issue under the Renewable Fuel Standard. The National Corn Growers Association called the website a “good place to start,” but says there is “a lot of questions left unanswered.” The EPA launched the website last week, as acting EA administrator Andrew Wheeler cited the move as an effort to increase transparency. Still, NCGA says the new website does not provide the justification for granting a refinery waiver. Further, NCGA President Kevin Skunes, a North Dakota farmer, says without a change in how EPA accounts for those exempted gallons at EPA, “ those waived gallons will still be lost from RFS obligations”. The agency says it granted 49 waivers in 2016 and 2017. Those waivers added up to 2.25 billion gallons in biofuels, which negatively affected roughly 800 million bushels of corn demand. Skunes says corn farmers are “still waiting for a plan to ensure exemptions are accounted.”

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