Agriculture News

AFBF optimistic despite challenging political, economic landscape

The Farm Bureau’s director of market intelligence, John Newton, flatly told delegates, “The Golden Age of ag income is over.”  Net farm income is projected to decline for the third consecutive year, and exporters’ biggest markets — China, Canada, Mexico and Japan — aren’t expanding. Newton said producers need to look at markets that are projected to grow, such as Africa. The world population is projected to hit 9 billion by 2050, and that provides opportunities for American’s farmers, Newton said.  “We are the breadbasket of the world, everybody knows that,” he said. Newton was part of a three-person AFBF economic team presentation. Economist Veronica Nigh said producers should borrow the Uber ride-share company’s slogan and “Get your side hustle on” to develop other revenue streams. She suggested farmers open their property to hunting and outfitting operations, develop a private fishing lake, offer motor home and boat storage rentals, operate a CSA or look for export options. Producers can find export help from various trade associations, Nigh said. “You don’t have to come up with that brochure in Mandarin all by yourself,” she said. Economist Katelyn McCullock said farmers can cope with stagnant prices by becoming more efficient, principally through genetics and technology. On the latter, automatic feeders and robots can reduce labor. “I’ve never met a farmer that said they want to manage more people,” she said.

Sustainability and agriculture

Speaking to reporters earlier this week, American Farm Bureau Federation President Zippy Duvall said producers need to speak up and tell the public how they are producing more food with less water, less pesticides and less plowing.

“We need to take back the concept of sustainability, because nobody works harder on sustainability than the American farmer and rancher,” he said.

He says agriculture has never been more sustainable.

China hikes anti-dumping duties on U.S. animal feed in final ruling

China has increased punitive tariffs on imports of a U.S. animal feed ingredient known as distillers' dried grains (DDGS) from levels first proposed last year, potentially escalating a trade spat between the world's two largest economies.  The ruling is a major victory for China's fledgling ethanol industry, which had complained the U.S. industry was unfairly benefiting from subsidies, and followed a year-long government probe. It also deals a blow to U.S. ethanol manufacturers already bracing for Beijing's higher import taxes on their main product. DDGS are a byproduct of the corn-based biofuel that have become a key contributor to profits. The industry is pumping out record volumes of biofuel and is facing domestic political uncertainty as they wait for President-elect Donald Trump to take office. In a final ruling, the Commerce Ministry said on Wednesday that anti-dumping duties would range from 42.2 percent to 53.7 percent, up from 33.8 percent in its preliminary decision in September. Anti-subsidy tariffs will range from 11.2 percent to 12 percent, up from 10 percent to 10.7 percent.

Michigan may best N.Y. as second-biggest apple producer

ith its large crop this season, the Michigan apple industry set new shipment records from mid-October through Christmas and is claiming the title of second-largest apple producer away from New York. Michigan may have beaten New York this season in apple production, but it might be just temporary. Both states are upping their game in competition with Washington.