The top lawmaker on the Senate Foreign Relations Committee expressed concerns this week regarding the new trade agreement between the U.S., Mexico and Canada. Bob Corker of Tennessee told The Hill he is “concerned about the steel and aluminum tariffs” that the U.S. and Canada both say are not connected to the U.S.-Mexico-Canada Agreement that will replace the North American Free Trade Agreement. Those tariffs are expected to be addressed separately from the USMCA. Corker says “we’re still trying to determine” whether or not the overall trade agreement is “better or worse than where we were.” The deal is better for U.S. agriculture, however, based on industry response. The deal provides a greater amount of market certainty with two of the top trade partners of the United States and provides more access to Canada’s dairy market, a top priority of the negotiation effort.

The “big four” farm bill leaders met Thursday in an effort to advance negotiations of the conference committee. Senators Pat Roberts and Debbie Stabenow, along with Representatives Mike Conaway and Collin Peterson, met Thursday in Washington to advance the farm bill talks, even though the House of Representatives is on recess until after the midterm elections. It’s the first face-to-face meeting of the leaders since some political finger-pointing regarding the delay, according to Politico. The 2014 farm bill expired over at the end of September with no new farm bill in place. Regardless, there’s much work to be done as Conaway has consistently said there is no firm agreement in place on any single title of the farm bill. The farm bill is expected to be completed and up for a vote sometime following the November midterm elections, as part of a busy lame-duck session.

Farm real estate values remain near record levels set in 2015, despite a significant drop in farm income and a weak farm economy. The Department of Agriculture’s Economic Research Service says the value of U.S. farm real estate is a critical barometer of farm financial performance, that’s because farm real estate, including land and the structures on the land, generally accounts for over 80 percent of U.S. farm sector assets, and often serves as collateral for farm loans. After a long period of appreciation following the farm crisis of the 1980s, farm real estate values have leveled off in recent years. USDA research indicates that, in general, the substantial growth in farm real estate values since 2000 was attributable to high farm earning potential and historically low interest rates. In 2000, after adjusting for inflation, average U.S. farm real estate values were $1,541 per acre—and reached a historic high of $3,178 per acre in 2015. By 2018, U.S. farm real estate values averaged $3,140 per acre, with the leveling off in recent years coinciding with declines in farm sector income.

A clause in the upgraded and renamed North American Free Trade Agreement nearly forbids deals with “non-market” countries, such as China. The language deep in the new U.S.-Mexico-Canada Agreement marks another blow in the tit-for-tat trade war the U.S. is leveraging against China. Reuters points out that the clause, which has stirred controversy in Canada, fits in with U.S. President Donald Trump’s efforts to isolate China economically and prevent Chinese companies from using Canada or Mexico as a “back door” to ship products tariff-free to the United States. Specifically, the provision specifies that if one of the current North American Free Trade Agreement partners enters a free trade deal with a “non-market” country such as China, the others can quit in six months and form their own bilateral trade pact.

Republicans could push for a swift vote on the U.S.-Mexico-Canada Agreement if Congressional power swings to Democrats in the November elections. Some Republicans in the Senate are pushing to approve the new trade deal this year, if the party loses majority in the House. The USMCA will replace the North American Free Trade Agreement, and if one of the chambers switches sides, some believe Democrats would vote against the agreement because it’s a “win” for President Donald Trump. Bloomberg reports not all Republicans are sure that a vote will happen this year, given that trade is such a volatile issue in the U.S. and that NAFTA has faced widespread criticism. However, Senate Finance Committee chairman Orrin Hatch has said the Senate “ought to move on NAFTA as soon as we can.” The Committee is the top panel in the Senate responsible for trade. A vote this year would be part of a busy lame-duck session that would include budget bills and the farm bill.

The U.S. Cattlemen’s Association expressed disappoint a new trade deal between the U.S., Mexico and Canada does not include a viable pathway forward for country-of-origin labeling on U.S. beef products. The U.S.-Mexico-Canada Free Trade Agreement, or USMCA, will replace the North American Free Trade Agreement. U.S. Cattlemen’s Association President Kenny Graner says the organization is “disappointed that the Administration turned its backs on U.S. cattle producers.” The organization says the administration missed an opportunity to reestablish a viable country-of-origin labeling program for U.S. beef products. In August, the association sent a letter to President Trump outlining how they believed a modernized NAFTA could reinstate COOL and “prevent U.S. agriculture jobs from being outsourced to other countries that can produce beef at a lower cost.” The association says in a statement that it will “continue to seek out avenues” for the return of COOL.

With the North American Free Trade Agreement renegotiation effort complete, the Trump administration is expected to turn its trade attention to China and its neighbors. The U.S. and China are in the midst of a tit-for-tat trade war started by President Trump. The Wall Street Journal says the U.S. should “follow this template” from the NAFTA talks to engage with Asia-Pacific trading partners and revive the dream of building a new, rules-based trading bloc to counter China. That was previously the goal of the Trans-Pacific Partnership that President Trump removed the U.S. from upon taking office. The Wall Street Journal opinion piece suggests that the U.S. should follow suit in Asian trade markets as part of its goal of boxing out China. Trade talks are set to begin between the U.S. and Japan soon, marking a potential start on the region. The U.S. Grains Council has previously stated that Southeast Asia specifically represents a region of substantial potential growth for U.S. farmers.

Concerns over weak farm income forced a sharp decline in the monthly Purdue University/CME Group Ag Economy Barometer. The index dropped to a reading of 114, 15 points below its August reading of 129 and its lowest reading since October 2016. Organizers say the barometer, a sentiment index based upon a nationwide monthly survey of 400 U.S. agricultural producers, has been unusually volatile in recent months. The volatility reflects uncertainty in farm country with trade issues, the expectation of bumper crops and low prices. Producers indicated that financial conditions on many farms deteriorated significantly as 2018 unfolded and farmers’ expectations for the future weakened as well. On the September survey, 54 percent of respondents said their farms’ financial condition was worse than a year earlier, and asked to look ahead, 33 percent of producers in September said they expect financial conditions on their farm to be worse a year from now.