R-CALF is hopeful the details of the U.S.-Mexico announcement as part of the North American Free Trade Agreement negotiations will include country-of-origin meat labeling. R-CALF, a long-time supporter of COOL, in a statement by its CEO said: “We hope that a further release of details will show that COOL will be required for Mexican beef and beef from Mexican cattle.” The organization says trade agreements, like NAFTA, allow unlimited numbers of tariff-free cattle from countries like Mexico, where cattle are overproduced at a significantly lower cost, and displace opportunities for current and aspiring U.S. cattle producers to expand or start their herd. R-CALF continues to argue that because beef from these imported cattle can be sold as a “Product of USA,” multinational beef packers “wallow in higher profits” because they can import lower-cost cattle into the U.S. market. The organization claims that Since NAFTA, the U.S. imports on average 1.1 million Mexican cattle each year, and since U.S. domestic cattle shrank by 6.5 million.
A vegetarian food company is challenging a new law in Missouri regarding meat labeling. The law, taking effect next week, prohibits food manufacturers from using the word “meat” on products made without animal flesh, and will make Missouri the first state to regulate meat labeling. However, Tofurky, the manufacturer of vegetarian products labeled as hot dogs, burgers and others, is challenging the law in court. The Oregon-based company contends that the provision barring food producers from “misrepresenting” their products as meat – as in calling them sausage and hot dogs – if they are not made from livestock or poultry is too vague, according to meat industry publication Meatingplace. Missouri lawmakers passed the law earlier this year, and it was signed by now-former governor Eric Greitens. Missouri Attorney General Josh Hawley is expected to defend the law in the wake of the Tofurky lawsuit.
The top lawmakers on the farm bill conference committee met this week, ahead of the first formal meeting next week. The farm bill conference is set to meet September 5th, in the first public meeting likely dominated by posturing and speeches. Senate Agriculture Committee Chairman Pat Roberts told Politico that he, Senate Agriculture ranking member Debbie Stabenow, House Agriculture Committee Chairman Michael Conaway ranking member Collin Peterson, had made “real progress” during the meeting, but did not get into specifics. Roberts is hopeful to submit a conference report to the committee, if ready at the time. Much of the work on the farm bill is ongoing at the staff level, and that’s expected to continue. The committee faces the task of merging the two versions of the bills, including the controversial Supplemental Nutrition Assistance Program work requirements.
The Department of Agriculture’s trade relief package is drawing criticisms that it favors soybean production over corn. Soybeans, no doubt a hotter commodity for China, which is targeting U.S. ag as part of the trade war with the U.S., have a much larger payout than corn. The payments are based on 2018 production levels that must be certified and provided to USDA. For soybeans, that’s $1.65 a bushel, for 50 percent of production. For corn, it’s a one cent per-bushel payment, for 50 percent of production, or considered as a half-cent payment on total production. The payout for soybeans is estimated to reach $3.7 billion, while the payments for corn are forecasted to reach $96 million. Texas Corn Producers Association President Joe Reed called the package a “slap in the face” to farmers working to make ends meet. Kansas corn President Ken McCauley says of the payments, “A half-cent is no relief from the market destruction we’ve seen for corn,” adding he’s “starting to feel picked on by the administration,” citing trade and the Renewable Fuel Standard. The payments become more troublesome for producers in drought pockets, such as Texas and Missouri, where corn production will be much lower than the rest of the nation.
NAFTA Negotiators in Mexico City photo courtesy Kan. congressman Roger Marshall
Negotiators from Canada returned to Washington, D.C. this week to resume talks on the North American Free Trade Agreement with the United States. The U.S. is pushing to get a so-called handshake agreement with Canada, following a framework agreement with Mexico. The U.S. seeks to announce a deal by the end of this week, placing a deadline of Friday. However, that deadline is purely political, as the U.S. wants to notify Congress 90 days before the outgoing Mexican President’s term expires. Under Trade Promotion Authority, the administration must give Congress a 90-day notice before sending the agreement to Congress for consideration. Trump has suggested breaking up NAFTA, and signing separate deals with Mexico and Canada. However, Politico points out that by doing so, Trump could forfeit his ability to get a straight up-or-down vote in Congress without any amendments under trade promotion authority. Trump notified Congress last year he intended to renegotiate NAFTA, not strike bilateral trade deals. For agriculture, the updated agreement with Mexico included improved food safety standards, biotech approvals and no new tariffs.
(NCGA) The National Corn Growers Association this week has said that plans unveiled by the U.S. Department of Agriculture to provide aid to farmers negatively impacted by trade tariffs and ongoing trade uncertainty would be insufficient to even begin to address the serious damage done to the corn market as a result of the Administration’s actions. The organization reiterated its call for the Administration to rescind tariffs, secure trade agreements and allow for year-round sales of higher blends of ethanol; no-cost actions that would allow for the marketplace to drive demand. According to an NCGA-commissioned analysis, which NCGA provided to USDA and the Office of Management and Budget, trade disputes are estimated to have lowered corn prices by 44 cents per bushel for crop produced in 2018. This amounts to $6.3 billion in lost value on the 81.8 million acres projected to be harvested in 2018. USDA’s plan sets the payment rate for corn at just one cent per bushel. “NCGA has understood from the beginning that this aid package would neither make farmers whole nor offset long-term erosion of export markets. But, even with lowered expectations, it is disappointing that this plan does not consider the extent of the damage done to corn farmers,” Skunes said. “Once again, we are calling on the Administration to settle trade disputes and support a strong Renewable Fuel Standard. These no-cost, immediate actions would deliver a real win for rural America.”
Agriculture groups welcomed the aid offered by a Department of Agriculture relief package announced Monday, but urged the administration to end trade disputes. Pork exports are one of the hardest-hit export categories, as U.S. pork exports to China are down significantly for the year, with the value falling nine percent through June. The drop has come mostly because of the 50 percent additional tariff from China. The package will provide producers $8 per hog based on 50 percent of the number of animals they owned on August first. National Pork Producers Council President Jim Heimerl stated that the U.S. pork sector was “grateful” for the relief package, “what pork producers really want is to export more pork, and that means ending these trade disputes soon.” Iowa Senator Chuck Grassley said the relief package was “welcome news” for farmers, but added “what they really want are long-term markets, not handouts.”