Agriculture News
NAFTA's 'Broken Promises': These Farmers Say They Got The Raw End Of Trade Deal
NPR | Posted on August 15, 2017You've heard that American agriculture loves trade. And it's easy to see why: Under NAFTA, American farmers have quadrupled their exports to Canada and Mexico and the two nations rank second and third, after China, as markets for U.S. farm goods. "American agriculture is virtually always a winner when trade agreements remove barriers to U.S. crops and livestock exports," says Zippy Duvall, president of the American Farm Bureau Federation, the largest farmers organization in the nation.But despite the largely pro-trade drumbeat in the ag sector, there are plenty of farmers who feel otherwise. From tomato growers in Florida to cattle ranchers in Montana, some farmers bruised by NAFTA think it has favored agribusiness over small-scale farms, lowered environmental standards and made it harder to compete against cheaper imports. "Right from the beginning in 1994, NAFTA opened up [the market] for Canadian ranchers to send their cattle directly into the U.S.," recalls Gilles Stockton, a sheep and cattle rancher in central Montana. Canadian cattle were exported to be slaughtered and sold in the American market, increasing competition for U.S. ranchers. "I can't find a single [Canadian] grain elevator that will take our [durum wheat]," Brodal says, even as Canadian durum continues to enter the United States. He wants to see NAFTA renegotiated to better protect farmers like him, making it harder for U.S. trading partners to undermine its provisions. For produce farmers in Florida the stakes in a NAFTA renegotiation are even higher, as winter-grown fruits and vegetables from Mexico stream north. Florida growers have, for example, cut the number of acres they have planted in tomatoes by 25 percent under NAFTA, even as Mexico has upped its production by 230 percent.
Trump’s Trade Pullout Roils Rural America
Politico | Posted on August 15, 2017After the U.S. withdrawal from the Trans-Pacific Partnership, other nations launch 27 separate negotiations to undercut U.S. exporters. The decision to pull out of the trade deal has become a double hit on places like Eagle Grove. The promised bump of $10 billion in agricultural output over 15 years, based on estimates by the U.S. International Trade Commission, won’t materialize. But Trump’s decision to withdraw from the pact also cleared the way for rival exporters such as Australia, New Zealand and the European Union to negotiate even lower tariffs with importing nations, creating potentially greater competitive advantages over U.S. exports. A POLITICO analysis found that the 11 other TPP countries are now involved in a whopping 27 separate trade negotiations with each other, other major trading powers in the region like China and massive blocs like the EU. Those efforts range from exploratory conversations to deals already signed and awaiting ratification. Seven of the most significant deals for U.S. farmers were either launched or concluded in the five months since the United States withdrew from the TPP. “I’m scared to death,” said Ron Prestage, whose North Carolina-based family pork and poultry business made its huge investment in the plant near Eagle Grove in part to reap expected gains from the TPP. He and other agricultural businesspeople and workers have reason for concern. On July 6, the EU, which already exports as much pork to Japan as the United States does, announced political agreement on a new deal that would give European pork farmers an advantage of up to $2 per pound over U.S. exporters under certain circumstances—a move which, if unchecked, is all but certain to create a widening gap between EU exports and those from the United States.
New Jersey-Size 'Dead Zone' Is Largest Ever in Gulf of Mexico
National Geographic | Posted on August 15, 2017A record-breaking, New Jersey-sized dead zone was measured by scientists in the Gulf of Mexico this week—a sign that water quality in U.S. waterways is worse than expected.The Gulf of Mexico hypoxic or low-oxygen zone, also called a dead zone, is an area of low to no oxygen that can kill fish and other marine life. It’s primarily caused by an excess of agricultural nutrients that flow downstream and into surface waters, stimulating harmful algae.To record the new measurements and assess the severity of low oxygen levels in the Gulf, scientists from the Louisiana Universities Marine Consortium (LUMCON) embarked on their 31st mid-summer hypoxia research cruise in July. Even with reported numbers as large as they are, the team of scientists said the entire area of the dead zone couldn't be mapped due to an insufficient number of workable days on the ship. There was more hypoxia to the west, and the measured size would have been larger if there was more time for researchers to work.
Carbon Dioxide May Rob Crops Of Nutrition, Leaving Millions At Risk
NPR | Posted on August 15, 2017Myers and his colleagues wanted to quantify what those changes might mean for people around the world. To do this, they built a new database detailing the foods people in each country eat and the nutrient content of those foods. The database lists the "per capita consumption of 225 foods for 152 different countries." It also accounts for differences in diets in each country based on age and gender. The database allowed them to calculate the number of people within each country that aren't getting enough of certain nutrients. They could then project changes in the protein and iron content of their diets through 2050. Their results appear in two new studies, One study published in Environmental Health Perspectives estimates that the predicted decreases in the protein content of food crops may put about 150 million additional people at risk of protein deficiency by 2050. The other study, published online in GeoHealth, found that the available dietary iron supply could decrease in some high-risk regions. Wheat and rice are not high in protein, but nearly three-quarters of the world's population uses these two crops as "primary protein sources," the study says, based on data from the U.N. Food and Agriculture Organization. And so, any reduction in protein contained in these crops can lead to health problems, particularly for poorer people in low income countries, says Myers.
SNAP plays outsized role in the economy of rural grocery stores
Daily Yonder | Posted on August 10, 2017As a new report shows that rural households are about 25% more likely than urban ones to participate in the Supplemental Nutrition Assistance Program (SNAP), rural grocers say the federal nutrition program is an important part of the revenue that keeps their stores in business. “The way I see it, SNAP is one of the best government programs out there,” said Kip Yoss, who owns and operates two independent grocery stores in rural West Missouri. “It really helps us pay our utilities, our workers, and keep the doors open.” Yoss said his stores earn about 11% of sales from SNAP, which provides a cash-like benefit to low-income Americans that can be spent only on food items. Other stores Yoss works with in harder-hit rural areas earn as much as 20-30% of their revenue from SNAP, he said. SNAP accounts for 9% of grocery sales nationally, according to the Food Marketing Institute. Sixteen percent of nonmetropolitan households used SNAP (formerly called Food Stamps), according to a new study from the Food Research & Action Center using American Community Survey data for 2011-15. The metropolitan rate was 3 points lower, at 13%. (If you’re interested in seeing SNAP usage in your county, the report includes an interactive map as well as state-by-state information.)
Farms feel the immigrant impact
The Post Star | Posted on August 9, 2017Opponents of immigration reform say immigrants drain resources that could be used for U.S. citizens.But studies show immigrants, legal and illegal, do pay taxes and pay into the Social Security system, even though most will never collect Social Security benefits.A March 2017 study by the Institute on Taxation and Economic Policy estimates that undocumented immigrants in the U.S. pay about $11.74 billion in state and local taxes.They pay sales tax on what they buy, property tax in the form of rent or homes they own, and many pay income taxes through Individual Tax Identification Numbers, according to the study.Undocumented immigrants in New York alone account for over $1.1 billion in taxes, the study shows.Assemblywoman Carrie Woerner, D-Round Lake, who represents farm country in Washington and Saratoga counties, said reform is needed, but she can’t do it at the state level.“It’s clear to me that our economy up here, both the agriculture economy and tourism economy, is very dependent on an immigrant workforce, and even if we just look at the challenges the growers have for seasonal visas, the process is extensive, it’s expensive and there’s not enough visas available,” she said.Washington County farmer Jay Skellie said the health of animals could be jeopardized if immigrants were herded up.“Some of these farms in western New York are milking 2,500 cows and if you take out all their workers, you’re causing a hardship to these animals. They have to be milked,” he said.
Wisconsin Dairy Business Association files lawsuit against DNR
edairynews | Posted on August 9, 2017The Dairy Business Association is trying to keep the Wisconsin Department of Natural Resources in check through a lawsuit seeking to stop the agency from overreaching its authority. It centers on how the agency implements new regulations without going through an approval process required by state law.
Trump’s Stalled Trade Agenda Leaves Industries in the Lurch
The New York Times | Posted on August 9, 2017After beginning his presidency with a bang by withdrawing from the Trans-Pacific Partnership pact in January, Mr. Trump has accomplished little else of significance when it comes to reorienting deals with other countries. Instead, his administration has been struggling to work through the complicated rules that dictate international commerce. All the while, they are learning that bold campaign promises are hard to keep when many voices advocate different plans.For many businesses that had raised their hopes, frustration is mounting by the day.America’s steelworkers are on edge as they wait for Mr. Trump to fulfill his promise to place tariffs on steel imports. Home builders are desperate for the president to cut a deal with Canada to end a dispute over its softwood lumber exports. And cattle ranchers are longing for a bilateral pact with Japan to ease the flow of beef exports. One accomplishment that Mr. Trump has notched on trade has been an agreement with China that opened its market to American beef exports. For the beef industry, however, the benefits of that deal pale in comparison with the cost of abandoning the Trans-Pacific Partnership, which had been spearheaded by President Barack Obama. It would have provided access to the enormous Japanese market.Instead, Japanese tariffs on American frozen beef, which would have declined under Mr. Obama’s deal, are on the rise. Last week, they increased to 50 percent from 38 percent, making America’s meat even more vulnerable to competition from countries such as Australia. The Trump administration has made the renegotiation of trade agreements central to its strategy for economic growth. Reducing trade deficits with other countries is one of its measures of success. Informed by his background in the real estate business, Mr. Trump has maintained that bilateral trade deals are simpler and more likely to benefit the United States than the multilateral pacts like Nafta or the Trans-Pacific Partnership.
Recent USDA Updates Provide Snapshot of Farm Economy Variables
Farm Doc Daily | Posted on August 9, 2017Last week, USDA’s National Agricultural Statistics Service (NASS) released three important updates that provide current insight into the state of the U.S. agricultural economy. The releases focused on land values, cash rents, and production expenditures. Meanwhile, USDA’s Economic Research Service (ERS) recently updated its monthly agricultural trade data, and on Monday, included an article related to farm household income in its Amber Waves magazine publication. As lawmakers and the executive branch continue to gather perspective in preparation for the next Farm Bill, today’s post looks briefly at some of the key findings from these recent USDA updates on the farm economy. NASS indicated that, “The United States cropland value remained unchanged at $4,090 per acre from the previous year. In the Southern Plains region, the average cropland value increased 6.0 percent from the previous year. However, in the Northern Plains region, cropland values decreased by 4.4 percent.” Cropland cash rent paid to Iowa landlords in 2017 averaged $231.00 per acre. This represented a decline from $260 in 2014, $250 in 2015, and $235 from last year. Farm Production Expenditures in the United States are estimated at $346.9 billion for 2016, down from $362.8 billion in 2015. ERS indicated that, “After adjusting for inflation, the decline in net cash income from 2013 to the ERS forecast for 2016 would be the largest decline since the 1980s in both absolute ($44 billion) and percentage (35 percent) terms. Prices received by farmers for all major commodities are lower, with many (such as corn, wheat, and milk) down 30 percent or more from highs recorded just a few years earlier. The recent declines in net cash income for the farm sector are large in percentage terms. But, when viewed over a longer time horizon and after adjusting for inflation, net cash income is forecast to return to the levels observed before this record growth. In 2016, net cash income is forecast nearly $4 billion (or about 5 percent) higher than the average net cash income from 2000 to 2009.”
Fieldale Farms chicken price fixing settlement could be good news for others
Meatingplace (free registration required) | Posted on August 9, 2017Chicken processor Fieldale Farms has proposed to pay $2.25 million to settle its part in a lawsuit involving 14 chicken processors, according to court documents filed in the U.S. District Court for Northern District of Illinois. Attorneys from law firms representing Maplevale Farms of Falconer, N.Y., said at the time that companies including Tyson Foods, Pilgrim’s Pride, Perdue Farms, Sanderson Farms and several others worked together to artificially reduce broiler chicken supplies in the U.S. marketplace knowing that supply reductions would boost prices. The 14 processors named in the suit were accused of sharing confidential information, including news on plant closings, hatching egg export levels and destroying breeder hens, according to the suit. The $2.25 million settlement implies a lower than expected litigation exposure for Tyson Foods, Pilgrim’s Pride and Sanderson Farms.