If you’ve traveled across the midwest recently, then you may have noticed fields of purple in the countryside. No, that’s not a new cover crop you’re seeing, it’s actually a weed. That splash of early spring color you’re seeing is more than likely Henbit or Purple Dead Nettle. Aaron Hager, Weed Sciences Professor at the University of Illinois, notes the mild winter has provided ideal growing conditions for winter annual weed species. While the purple fields may look pretty to passers-by, they can be a headache for farmers. Hager notes the vegetation can attract unwanted pests to a field. He also says those fields will either require a thorough application of herbicide, or some intensive tillage work before they’ll be ready to plant this spring. According to Hager, late fall tillage could alleviate some of the hassles of winter annual weeds. However, he notes spring burn down applications of herbicides also work well for farmers wanting to control erosion. Either way, he says producers should be sure to limit as much early season weed pressure as possible for their crop. As the month of April progresses, midwest farmers are hoping the recent wet weather relents soon so they can begin seed bed preparation, and of course planting of the 2017 crop.
The Ag Retailers Association, the National Farmers Union, and a host of other groups sent a letter to Congress opposing the possible privatizing of the nation’s air traffic control system. The groups say a proposal to privatize the national air traffic system is being pushed by many of the bigger airlines. The idea would take air traffic control out from under Congressional oversight and put it under the control of a board made up of mostly commercial interests. The board would oversee things like taxes and fees, to airport investments and access. The letter arrived this week as the U.S. Senate Commerce Committee is holding a hearing on reauthorizing the Federal Aviation Administration. The letter says, “Rural communities, agriculture, and small businesses would stand to lose the most under a privatized system. There would be no Congressional oversight to ensure that all stakeholders and communities have access to equal transportation. A privatized system likely will direct most resources to the larger airport hubs in urban areas.”
Politico’s Morning Agriculture Report says the European Union’s approval of the ChemChina merger with Syngenta means the ball is likely rolling for the six biggest biotech companies to be whittled down to three by the end of this year. A day before the E.U. approved the deal, the U.S. Federal Trade Commission also okayed the deal as long as certain stipulations were met that require ChemChina to sell off parts of its business that overlap with Syngenta. Now that the U.S. and E.U. have approved the deal, the two companies need the approval of China, India, and Mexico to complete their $43 million deal. Politico says the next deal likely to close will be the biggest. It’s the $130 billion merger of Dow Chemical and DuPont, which still requires the approval of the U.S., Brazil, and China. There’s still a $66 billion dollar deal between Bayer CropSciences and Monsanto to complete yet. The two companies are still looking for approval from up to 30 nation groups. However, they do expect to get an answer from the U.S. and the E.U. by the end of June, which they say would put the deal on track to be completed by the last quarter of this year.
The House Agriculture Committee held a hearing this week to look at how the tax code currently in place affects farmers, ranchers, and the rural communities they live in. The American Farm Bureau was one of the organizations giving testimony. Pat Wolff, Senior Director of Congressional Relations, told the committee that farmers and ranchers need more flexibility built into the tax code. The goal would be to give farmers the flexibility to grow during the good times and help them adapt to situations often beyond their control when tough times hit. The House has proposed ideas for tax reform, many of which the Farm Bureau supports. Some of the proposals include reducing income tax rates, reducing capital gains taxes, immediate business expensing, and repealing the estate tax. Wolff says Farm Bureau has ideas that would improve the proposed changes to the tax code, including reinstating benefits like the deduction for business interest expense and guaranteeing the continuation of stepped-up basis, cash accounting, and like-kind exchanges. “Running a farm and ranch business is challenging under the best conditions,” Wolff said in her testimony. “Farmers and ranchers need a tax code that recognizes the unique financial challenges that impact them.”
Monsanto this week announced increased sales and profits for the first half of its current fiscal year. Monsanto’s net sales for the second quarter increased to approximately $5.1 billion, up from $4.5 billion in the prior year period. Gross profit for the quarter also increased over the prior year to $3.0 billion versus $2.6 billion. For the first six months, net sales increased to $7.7 billion, and gross profit was $4.2 billion, significantly outpacing the first half of fiscal year 2016. The company says the performance was driven in part by strong gross profit growth from its corn and soybean businesses. For Roundup Ready 2 Xtend soybeans, Monsanto says it is expected to reach 18 million acres in the United States this year. A similar Monsanto product is anticipated to expand to 45 to 55 million acres in South America. In referring to the Monsanto-Bayer merger, Monsanto CEO Hugh Grant said in a statement that Monsanto’s “innovation and unique platform advantages” position the company to meet future challenges and makes Monsanto an “attractive, complementary partner for Bayer.”
A group of legislators are pressing the White House to raise the issue of U.S. beef trade with China when President Donald Trump meets with Chinese President Xi Jinping today. A group of 39 Senators, including Senate Agriculture Committee Chairman Pat Roberts, have penned a letter to President Trump, asking him to raise the issue of U.S. beef access to Chinese markets. China has recently become the fastest growing beef market in the world, but U.S. producers have not had the opportunity to access the market since 2003. The effort was led by Montana Republican Senator Steve Daines. In the letter, the Senators say: “Opening this market to U.S. producers would create substantial opportunities for ranchers across the country.” The letter points out that China’s beef import market is worth more than $2.5 billion and is the second largest importer of beef in the world.
Senate Majority Leader Mitch McConnell has placed a time for debate and a vote for the confirmation of Agriculture Secretary Nominee Sonny Perdue. The vote is scheduled for 5:30 p.m. April 24th, after what’s expected to be a couple of hours of debate. The Senate Periodical Gallery confirmed the vote, saying McConnell added it to the schedule as a unanimous consent request, according to the Hagstrom Report. The schedule puts to rest any speculation a vote could be held yet this week, as the Senate is stuck in a political battle over Supreme Court Justice nominee Neil Gorsuch. The vote is scheduled for the first day back for the Senate following a two-week recess. The vote comes 13 weeks after Perdue was nominated by President Donald Trump.