Agriculture News
NMPF Statement on USDA Trade Aid Package
National Milk Producers Federation | Posted on September 5, 2018“Today’s announcement by the U.S. Department of Agriculture (USDA) on its tariff mitigation plan falls far short of addressing the losses dairy producers are experiencing due to trade retaliation resulting from the Trump Administration’s imposition of steel and aluminum tariffs. “The dairy-specific financial assistance package provided by USDA – centered on an estimated $127 million in direct payments – represents less than 10 percent of American dairy farmers’ losses caused by the retaliatory tariffs imposed by both Mexico and China.“The price drop resulting from these tariffs has not been gradual – it’s hurting U.S. dairy producers right now and will continue to do so. Since the retaliatory tariffs were announced in late May, milk futures prices have lost over $1.2 billion through December 2018. Milk prices for the balance of the year are now expected to be $1.10-per-hundredweight lower than were estimated just prior to the imposition of the tariffs on U.S. dairy exports.“In addition, a new study by Informa Economics on the impact of the retaliatory dairy tariffs projects dairy farmer income will take a hit of $1.5 billion this year if the tariffs remain in place through the end of 2018. This loss compounds to $16.6 billion if the tariffs are left in place long term over the next five years, through 2023. The impact of lost sales to China account for most of that harm, accounting for 73 percent of the total. That sizable decline in farmer incomes will compound the low prices and financial losses that dairies have already felt.
Russian wheat export restrictions expected
AgWeek | Posted on September 5, 2018The last couple of weeks have seen some news out of Russia that have resulted in dramatic price swings. To catch up, a few Fridays ago rumors begin to circulate that the Russian Agriculture Ministry intended to curb wheat export demand by placing limits on shipments once exporters hit 30 million metric tons of exports. This hit the news not by an official announcement from the Russian government, but from a word-of-mouth exchange with one of the exporters allegedly present during a discussion about this potential policy. Prices climbed immediately on this news, as the total wheat supply situation is contracting this year due to poor crops in the European Union and Eastern Australia. If another top exporting country (Russia) is pulling itself out of the market, it puts more demand on the U.S. and Canada to fill global demand.
Russian agriculture's quiet rise
Northwest Arkansas Democrat Gazette | Posted on September 5, 2018The challenges of rural America and Russian political interference seem on opposite spectrums of connectedness, until one stops to examine how Russia is poised to benefit from the current turbulence in global trade policy. Is the Trump administration truly crafting new trade frameworks, or is the Russian agriculture sector building its future on the bankruptcies of America's breadbasket? The current deck is undeniably stacked against U.S. soybean producers: global supply glut, a strong dollar, newly effective tariffs in the only important export market, and the uncertainty of previously enjoyed sales contracts due to hanging trade negotiations. While Brazil remains the lead competitor this year in the global soybean market, are we paying close enough attention to how Russia is capitalizing on this instability? Specifically, consider Russia's recent focus on highlighting partnership opportunities with neighboring China.Russia offered 2.5 million acres of land to Chinese investors for agriculture-specific purposes. Whether this offer will become planted acres remains unseen, but the two countries have also further invested together, opening borders for the purchase of agriculture chemicals and farm machinery from China. With additional logistical benefits of geographic proximity and an apparent Kremlin commitment to fostering a proactive relationship with the world's pre-eminent agriculture import market, can the U.S. recover lost market share in the long term?In stark contrast, United States leadership has failed to provide measurable action to stop the hemorrhaging in certain key markets. It is hard to argue that the White House has meddled in markets where the causality will ultimately be devastating to some of President Trump's most loyal voting base.
Animal agriculture stats were wrong
Northwest Herald | Posted on September 5, 2018A recent letter describing the detrimental effects of animal agriculture on the environment contains, as usual, incorrect statistics and facts. The writer states that animal agriculture can be blamed for 19 percent of greenhouse gas emissions. The global figure is 10 percent, with most leading scientists and the Environmental Protection Agency putting U.S. animal agriculture emissions at about 3 percent to 4 percent.This is in comparison to GHG emissions of electricity, transportation and industry at 33.28 percent and 20 percent respectively. Animal agriculture does not use 70 percent of fresh water globally. This figure is for all of agriculture, with the majority of it being crop irrigation. The same can be said for land use. Worldwide agriculture as a whole accounts for about 37 percent. Deforestation is mentioned in order to create pastures. Most of the time, if this is done, the land is being used for row crop or grain production. Livestock transportation emissions are minimal compared with transporting fruit and vegetables from California, Florida, Mexico, etc., to your local supermarket.I would like to mention some other facts. One-third of all the food produced in this country is lost or wasted. Lost being left in field, rejected at market, etc., and waste being uneaten, spoiled, thrown out, etc., food.This food generates 3.3 million metric tons of carbon dioxide in landfills or wherever it ends up. This is equivalent to the emission of 70,000 cars per year. Globally, the GHG emissions from this food is triple that of animal agriculture GHG emissions in our country.
USDA sees another big drop in farm income for 2018
Agri-Pulse | Posted on September 5, 2018USDA forecast net farm income for this year at $65.7 billion, up from a February projection but down $9.8 billion, or 13 percent, from 2017, when the broad measure of farmland profits increased nearly 23 percent. The department’s Economic Research Service said that in inflation-adjusted 2018 dollars, net farm income is expected to drop $11.4 billion for the year, after increasing $13 billion (20.3 percent) in 2017. If realized, inflation-adjusted net farm income for 2018 would be just slightly above 2016, which was its lowest level since 2002.
Severe Thunderstorm Watch With paltry dairy prices, Minnesota farmer prepares to milk his cows one last time
Brainerd Dispatch | Posted on September 5, 2018Milk prices for dairy farmers have hit rock bottom and stayed there too long. Cordes had to do something. "I just got my milk check for July's milk, and my base was $14 a hundredweight. And that is the same price I got 25 years ago, and our expenses have doubled and sometimes tripled," he said.While the math should make this an easy decision, it's not. After all, Cordes' ancestors from Germany arrived in this part of Otter Tail County before the 1900s. Since then, there has been a Cordes farming for 133 years. I am the last one, but that is a long run," he said.Cordes is not alone. In the last 18 years, 42,000 dairy farmers nationwide have called it quits. But just two hours south of Otter Tail County, there are mega dairy farms going up. Where in each barn, there are 10,000 cows being milked."I can't compete with such a specialized operation, and it runs like clockwork," Cordes said.These days, Otter Tail County has about 150 dairy farmers. There used to be hundreds.
As President Rallies in Evansville, Indiana Farmers and Manufacturers Bear the Costs of the Trade Wa
Farmers for Free Trade | Posted on September 2, 2018Farmers rely on exports and overseas markets to stay in business, but the trade war makes it harder and harder for us to stay afloat. Tariffs are allowing foreign competitors to sell to our customers at a better price than we can offer. If the trade war doesn’t end soon, tariffs could cause permanent damage to rural communities in Indiana and across the country. The U.S. Chamber of Commerce estimates the retaliatory tariffs in a burgeoning trade war could cost Indiana up to $1.1 billion, including in lost steel exports to Canada.
Suit vs. USDA over organic animal welfare rules allowed
Meatingplace (free registration required) | Posted on August 30, 2018federal district court in northern California has ruled that a lawsuit challenging USDA’s withdrawal of organic animal welfare regulations can proceed. The Center for Food Safety is suing USDA after the agency withdrew the Organic Livestock and Poultry Practices final rule that would have increased federal regulation of animal housing, healthcare, transportation and slaughter practices for certified organic producers and handlers. Existing organic livestock and poultry regulations remain in place."We are very gratified that the court agrees we can challenge the unlawful withdrawal of these hard-won animal care protections in organic production," George Kimbrell, legal director for the Center for Food Safety, said in a press release.
The Allure Of Destination Breweries As Rural Economic Engines
Wiscontext | Posted on August 30, 2018Craft beer fans seeking different flavors are accustomed to hitting the road to taste offerings from breweries both near and far from home. Special releases of new and limited-run creations are a big draw, but so too are the breweries themselves. As the craft beer industry has blossomed over the past decade, so too have options for such visits. The Brewers Association, a national trade association for craft beer-related businesses, reported that in 2017, craft consumers visited three-and-a-half breweries near their homes and two-and-a-half breweries within two hours' driving distance on average."Beer tourism" is one label for the phenomenon of people planning getaways around visiting craft breweries, as is the punchier "beercation." In 2016, Travelocity established a "beer tourism index," which identified the top destinations for craft beer in the United States. (Madison was ranked ninth among large metro areas.)
Nevada marijuana sales blow away projections in first year
Las Vegas Review Journal | Posted on August 30, 2018Nevada dispensaries sold nearly $425 million worth of recreational marijuana and pulled in nearly $70 million in tax revenue in the state’s first full year of sales, officials announced. Including recreational and medical marijuana as well as marijuana-related goods and accessories, Nevada stores eclipsed a half-billion dollars in sales, just under $530 million, according to figures released Tuesday by the Nevada Department of Taxation.That dwarfs first-year sales seen in other states, and significantly outpaced Nevada’s own projections for the budding industry.Bill Anderson, executive director of the Tax Department, said that the industry “has not only exceeded revenue expectations, but proven to be a largely successful one from a regulatory standpoint.”