President Donald Trump released his plan to upgrade the nation’s infrastructure, including roads, bridges, and airports. Bloomberg says it may be a tough sell in Congress. Democrats say it falls short and Republicans are said to be wary of another large spending measure. The 53-page document shows how Trump plans to stimulate $1.5 trillion in new investments. It also looks to shorten project permitting time to two years, invest in rural projects, and improve worker training. Many of the main points in the plan have been known for some time. There were some new elements in the proposal, including expanding the use of private-activity bonds to finance projects. That would extend the use of tax-exempt debt by private entities and broaden the number of projects the bonds could be used for. Other proposals include letting states add tolls on interstates, as well as fostering public-private partnerships in transit projects. The plan also proposes streamlining legally required environmental analysis for public projects. Under the plan, it would give regulators more latitude in waiving required environmental reviews and how it could impact a community.
Farmers and ranchers, don’t forget to respond to the 2017 Census of Agriculture. The first deadline of Feb. 5 has passed, but the USDA is encouraging all farmers and ranchers who haven’t yet done so to respond. Every response matters. USDA’s National Agricultural Statistics Service, or NASS, will soon send another questionnaire to those who haven’t responded and start making follow-up phone calls later this month. There are two ways to respond: online at www.agcounts.usda.gov or by mail. The census, conducted just once every five years, provides a complete account of the industry, its changes and emerging trends. Census data are widely used, often relied on when developing the Farm Bill and other farm policy, and when making decisions about disaster relief, community planning, technology development, and more. It is important that every producer be reflected in the data so that no operation or community is underserved in the years to come. The better the data, the more accurate the reports; the more accurate the reports, the more informed decisions will be, said USDA officials.
Foreign countries that compete with the U.S. for world market share are increasing their spending on promoting ag exports. Several countries, as well as the European Union, spent close to $1 billion in public funds on ag export promotion in 2016. Studies are showing those countries outspent the U.S. 4 to 1. That’s a 70 percent increase in competitive public spending since 2011. U.S. public funding for its two largest export promotion programs is about $235 million per year, with the real value declining by 12 percent since 2011. A study commissioned by the Wine Institute and other ag groups shows that public investment from the EU and four European countries will exceed $550 million in 2019. “That’s more than twice what the U.S. authorizes for agricultural export development under the farm bill,” says Mark Powers, Chair of the Coalition to Promote U.S. Ag Exports. Canada and Italy have doubled their spending on ag export promotion while China and Brazil have tripled their investment. Tom Sleight, U.S. Grains Council CEO, says increasing competition is one reason why organizations that participate in USDA cost-share export programs are calling for more funding of the U.S. program.
Senate Ag Committee Chair Pat Roberts says the Bipartisan Budget Act passed in both chambers of Congress benefits Americans in many ways. It avoids a government shutdown, raises military funding, contains disaster assistance for several states that were hit hard by natural disasters, and improves livestock assistance programs. Roberts says, “In addition to disaster assistance for states hit hard by hurricanes, we’ve also improved livestock disaster programs to help producers recover from wildfires and other disasters.” More funds are available under the Emergency Assistance Livestock, Honey Bees, and Farm-Raised Fish Program. There’s also more money available under the Livestock Indemnity Program. There’s also a revision of the LIP program that lets producers who had livestock injured during a natural disaster and sold for a diminished value can qualify for a payment. House Ag Committee Chair Michael Conaway says delegations from the two hardest-hit states of Florida and Texas worked very hard to get something put together to help their producers. Conaway adds, “The relief includes vital improvements to standing disaster programs and addresses significant gaps in the safety net for cotton and dairy farmers.” He says they have more work to do on behalf of America’s farmers during the development of the 2018 farm bill.
House Agriculture Committee Chair Mike Conaway this week expressed his desire to see mark up and a vote on the farm bill by the end of March in the House of Representatives. Conaway says that timetable would leave plenty of time to work out differences with the Senate version of the bill and ensure new legislation is finalized before the farm bill expires at the end of September. Conaway does not expect the Senate to have a version of the bill ready next month. The Congressional Budget Office is scoring the House version of the bill, and Conaway has previously said the bill would be released once all titles receive a score. Meanwhile, Conaway told the crop insurance industry the House version of the bill leaving his committee will include a strong crop insurance component, and he will work to fight off attempts to weaken crop insurance.
CME Group is mulling potential changes to corn and soybean markets to address concerns the contracts’ prices are not accurately reflecting the underlying U.S. cash grain markets. Reuters reports that CME Group says it is “only in listening mode,” and that no changes are permanent. CME Group has been talking with customers about potential adjustments, as the discussions signal a new way in which the oversupply has been affecting day-to-day operations in the U.S. farm sector. Reuters says that farmers who rely on CBOT futures are beginning to lose faith in a critical hedging tool to offset the risk of raising crops and defend themselves against price swings. At issue for CME is a discount for corn and soybeans in the U.S. cash markets, where farmers sell their physical harvests, relative to the company’s soybean and corn futures contracts. Normally, the global futures benchmarks come together with cash prices at delivery points along the Illinois River when the futures contracts are expiring. But, some have not in recent months.