Farm groups are cautioning the Trump administration not to open a "Pandora's Box" by claiming restrictions on steel and aluminum are needed to protect "national security." Eighteen agricultural groups wrote to Secretary of Commerce Wilbur Ross on Tuesday, stressing that such a move would be a disaster for global trade, "and for U.S. agriculture in particular."The Trump administration is expected to decide any day whether to place tariffs on steel imports, stemming from an April investigation announced by the Commerce Department over whether those imports are harming U.S. national security. It's a rare argument for a major global power to make in a trade case.The farm groups wrote to Ross that it would be "a short-sighted mistake" to restrict imports based on national security claims. The farm groups called on Ross to consider the broader implications for the economy "and avoid igniting a trade war through new restrictions on steel or aluminum trade ..."Nick Giordano, vice president and council for global government affairs at the National Pork Producers Council, said farm groups recognize there is an overcapacity of steel and aluminum in the world. Farm groups and other industries are concerned, however, that the Trump administration's plan would boomerang against other exporting industries. Giordano also pointed out that roughly 25% of pork is exported, and in the case of a crop such as wheat, as much as 50% is exported.
Agriculture Secretary Sonny Perdue today gave the go-ahead to conduct emergency haying on Conservation Reserve Program lands to help provide feed for livestock in drought-stricken areas of Montana and North and South Dakota. “Because of the rapidly worsening drought and increasing degradation of existing forage, the Secretary is authorizing emergency haying beginning July 16,” the Farm Service Agency said in a notice. Farmers typically would be allowed to start haying on Aug. 1. The notice applies to certain counties in the three states that are suffering through D2 drought conditions or worse, as indicated by the U.S. Drought Monitor, and counties located in a 150-mile buffer.
The European Union and Japan announced a broad agreement on Thursday that would lower barriers on virtually all the goods traded between them, a pointed challenge to President Trump on the eve of a summit meeting of world leaders in Germany. Though the deal still needs further negotiation and approval before it can take effect, it represents an act of geopolitical theater, a day before a Group of 20 summit meeting begins in Hamburg. At a meeting of G-20 finance ministers in March, Steven Mnuchin, the United States Treasury secretary, pointedly declined to endorse a statement in favor of free trade. Prime Minister Shinzo Abe of Japan said the deal signified the creation of “the world’s largest free, advanced, industrialized economic zone.” The core of the agreement aims to increase the flow of Japanese cars to Europe and of European food to Japan.
The U.S. Department of the Interior will pay nearly $465 million this year to local governments primarily in rural areas that have come to rely on the funds because they cannot levy taxes on federal lands. Interior Secretary Ryan Zinke announced the sum in Nevada on Monday. The $13 million increase this year is slightly less than the average annual growth of $22 million over the last decade. Most of the money goes to Western states, where the Interior Department collects most its $8.8 billion in annual revenue from commercial activities on public lands. California will see more than $48 million this year from the program. Arizona, Colorado, Idaho, Montana, New Mexico and Utah will each receive between $30 million and $40 million.
Cyantraniliprole, a new insecticide that’s significant for blueberry and citrus growers, will remain on the market even though a federal appeals court has ruled its approval violated the Endangered Species Act. he chemical provides a new weapon against the spotted wing drosophila in blueberries and the Asian citrus psyllid in citrus crops.Environmental groups — Center for Biological Diversity, Center for Food Safety and Defenders of Wildlife — filed a lawsuit against EPA claiming the agency never studied CTP’s potential effects on threatened and endangered species.According to the plaintiffs, CTP may be “fairly persistent” in an agricultural environment even as it degrades, raising the possibility the chemical will accumulate over time.The plaintiffs pointed to EPA’s own ecological risk assessment that found the insecticide is expected to be sprayed in areas inhabited by 1,377 endangered species. The D.C. Circuit said it’s convinced that leaving CTP’s registration in place while EPA further evaluates the chemical will maintain “enhanced protection of environmental values.”
The first known shipment of cooked chicken from China reached the United States last week, following a much-touted trade deal between the Trump administration and the Chinese government. But consumer groups and former food-safety officials are warning that the chicken could pose a public health risk, arguing that China has made only minor progress in overhauling a food safety regime that produced melamine-laced infant formula and deadly dog biscuits. Chicken from China will not be labeled, and a representative from Qingdao Nine-Alliance Group, the first exporter, did not specify the name brand it’s being sold under. The privately owned chicken company, one of the largest in China, already supplies markets in Asia, the Middle East and Europe. Exports of poultry, largely chicken and duck, are expected to swell under the terms of a May trade deal that would send more U.S. beef to China and expand Chinese poultry sales into the United States. The U.S. Department of Agriculture recently proposed a rule allowing China not only to cook, but also raise and slaughter the birds that it ships here as chicken nuggets and flash-steamed duck breasts.
Mexico is no longer the biggest buyer of corn from the U.S., a sign that trade tensions are pushing American grain toward other markets while its southern neighbor lines up new suppliers. Sales to Mexico through May were $1.04 billion, down 6.7 percent from a year earlier, the U.S. Department of Agriculture said Thursday in a monthly update. That contrasts with the 32 percent increase for the overall value of U.S. corn exports in the period, during which the average dollar value of the commodity was little changed. Japan boosted its purchases 53 percent to $1.19 billion to become the largest importer of American corn. Mexico initiated talks with other major corn exporters this year after it was criticized by President Donald Trump, who said the country has taken advantage of its northern neighbor through the North American Free Trade Agreement, taking away jobs and investment.
The change in farm bill outlays is due to a variety of factors. First, price expectations for several covered commodities have changed due to different supply and demand conditions. For example, consider that record yields and larger domestic inventories have weakened corn prices in recent years and led to higher ARC-CO payments. CBO’s June 2017 projections are for marketing year average corn prices to remain below $4 per bushel over the next decade. These lower corn prices contribute to an additional $4.8 billion in ARC-CO and PLC outlays over the next 10 years. While government costs of the corn program have increased due to weaker prices, other commodities saw their outlays decrease due to higher market prices. For example, tighter supply conditions in peanut markets resulted in the CBO raising their price forecasts in nearby years. In March 2016, CBO estimated the five-year average peanut price at 17.4 cents, and in the most recent baseline, the five-year average price was 21.5 cents per pound, Figure 2. These higher peanut prices lowered forecasted PLC payments by $1.7 billion over 10 years. This reduction in baseline spending was expected as forward contracts to peanut producers have been reported in the range of $400 to $500 per ton.
International workers are the backbone of the Seaside Farm Market in the remote northern Outer Banks town of Corolla. Only 500 people live there, but up to 50,000 visit every week in the summer.But for the first time in 23 years, the family-owned produce and seafood market didn’t open this summer. Owners Bill and Julie Grandy weren’t able to get the H-2B visas they needed to bring in the workers from Mexico they’ve employed for years.They didn’t get a single local applicant for jobs advertised at $15 per hour, Bill Grandy said, calling Corolla a “black hole” for local labor. The husband and wife have both had to take other jobs.“It’s devastated us,” he said. “We have a half a million dollar investment just sitting there generating no money. I don’t know how to describe it other than (total) disaster.”H-2B visas are designed for businesses to fill seasonal non-agricultural jobs. In North Carolina, they’re mainly used in the landscaping, tourism and seafood processing industries. North Carolina uses more H-2B visas than any state besides Texas and Colorado, receiving 4,324 worker certifications in fiscal year 2017, according to data from the Office of Foreign Labor Certification.
President Trump vowed to “unleash American energy” on Thursday, pledging to bolster the ailing nuclear industry, open up new offshore areas for drilling, and help seal deals for oil pipelines and coal exports.Riding a wave of shale drilling that doubled the country’s total oil and gas production during the Obama administration, Trump said: “We’re here today to usher in a new American energy policy, one that unlocks millions and millions of jobs and trillions of dollars in wealth.”But energy experts were not impressed with the measures Trump unveiled Thursday, saying they would have little effect.“We’re going to be an exporter,” he said. “We’re going to export energy all around the world, all around the globe.” And he celebrated “near limitless supplies of energy” in the United States, adding: “We are now on the cusp of a true energy revolution.”The United States exports liquefied natural gas (LNG) in tankers, natural gas through pipelines, and petroleum, though it remains a net importer of 4.8 million barrels a day of crude oil and refined petroleum products — about a quarter of total U.S. oil consumption.Trump said his administration would take steps to “to revive and expand our nuclear energy sector,” which he said “produces clean, renewable and emissions-free energy.”He didn’t describe those steps, saying that he awaits a “complete review.” But few expect the administration review to include a carbon tax, a policy that would greatly benefit nuclear energy and simultaneously acknowledge the problem of climate change.