International Dairy Foods Association President and CEO Michael Dykes gave his annual state-of-the-industry speech to the Dairy Forum in California. One of his highlights focused on the unity between dairy producers and processors. The Hagstrom Report says that unity that has led to joint positions on the upcoming farm bill, as well as the Trump Administration’s strong advocacy for dairy in the North American Free Trade Agreement negotiations. Jim Mulhern, National Milk Producers Federation CEO, says, “This is the first time my career that producers and processors have been united for a farm bill. It’s the first time in living memory that Congress won’t have to choose between one side or another. That’s a real accomplishment.” The goal of their collective efforts is to help make way for a new farm bill that will improve the Margin Protection Program for dairy farmers while enhancing risk management options for processors. At the same time, they’d like to improve nutrition and build domestic demand through the Supplemental Nutrition Assistance Program. The House recently included provisions to help the nation’s dairy farmers in the disaster bill put together to aid hurricane victims. That bill is currently under consideration in the Senate.

The hard-line rhetoric against Cuba in Washington, D.C., has led to a chink in the diplomatic ties formed in the Obama-era. However, the amount of food exports going from the U.S. to Cuba paints a very different picture. The U.S-Cuba Trade Economic Council released numbers showing that agricultural exports to Cuba totaled up over $250 million in 2017. Those numbers stretch from January to November, and they show an increase of $50 million in exports of food products and other agricultural commodities in comparison to 2016. The report from the U.S.-Cuba council shows that, in terms of overall dollar value, chicken makes up more than half of the exports to Cuba. Chicken has consistently been at the top of the list of the items that Cubans buy most from the U.S for a decade. The island country also regularly purchases U.S. soybeans and corn. Cuba largely relies on imports for agricultural products. However, U.S. policy toward Cuba doesn’t allow private financing for Cubans to buy goods from the U.S., making it tough for American producers to fully tap into the market.

While the U.S. is still unhappy with the slow pace in the North American Free Trade Agreement negotiations, there are some sections that are close to completed. Canada’s chief NAFTA negotiator says that the sixth round of talks could lead to a revamped sanitary and phytosanitary chapter of the pact. Politico says that chapter covers rules on food safety and animal and plant health. While Canadian officials said there were discussions on that chapter Thursday, even though it’s not finished, they’re more hopeful that it’s close to being wrapped up. Talks on Canada’s dairy supply management system are stalled, which may mean it takes a backseat on things like automobiles, government procurement, and dispute settlement. Jaime Castaneda, senior vice president for trade policy with the National Milk Producers Federation, says he believes there is still a way forward on dairy negotiations, and he feels that the Canadian government believes that too.

Not all ag sectors in Canada are thrilled with the Trans-Pacific Partnership Agreement, known as the Comprehensive and Progressive Trans-Pacific Partnership, or TPP 11. Canada’s dairy and chicken producer groups claim the deal will “chip away” at their markets. Chicken Farmers of Canada says the agreement still includes concessions on market access for chicken products in response to U.S. demands. AgCanada reports Canada granted those concessions in 2016 coming out of negotiations for the original TPP trade deal, before the U.S. withdrew from the 12-country agreement early last year. With the U.S. out of the partnership, the group said, “those concessions should have been taken off the table.” A spokesperson for Chicken Farmers of Canada says the nation has “reached the limit” of concessions for any future negotiations, referring to the North American Free Trade Agreement, adding that if the U.S. wants market access to Canada “they are welcome to rejoin” the TPP 11 agreement. Dairy Farmers of Canada agreed, calling NAFTA “another vehicle that threatens to weaken the Canadian dairy industry.”

Last year, drought worries centered around the northern Plains and grazing conditions in the Dakotas and across Montana. Those areas remain dry, but the intensity has weakened, according to the latest U.S. Drought Monitor. Moving into 2018, drought intensity and area is spreading, extending over the Southwest, southern Plains and Great Plains, according to the American Farm Bureau Market Intel service. Parts of Texas have not seen any measurable precipitation for more than 100 days. A swath from northern Texas, extending into parts of the Oklahoma panhandle region, and further into southern Kansas, is rated in extreme drought, according to the monitor. All of Oklahoma falls under a drought classification, with much of the state rated in moderate drought. The Monitor reports that agricultural impacts from the drought are being felt in Utah, Kansas and Oklahoma, and include decreasing hay and soybean yields, deteriorating wheat and grazing conditions, and decreasing water supplies as ponds and wells are going dry. Some of these effects started from moisture deficits dating back to the summer of 2017. Meanwhile, much of the Western Corn Belt is under some form of classified drought.

Wheat organizations from The U.S., Canada and Mexico are urging negotiators to reach a successful North American Free Trade Agreement. In a letter addressed to negotiators and President Donald Trump, several wheat-based groups from the three nations detailed the importance of the trade agreement to wheat growers and their associated industries. National Association of Wheat Growers President Gordon Stoner says: “The fact that wheat producers and end users from all three countries would speak with one voice about the importance of NAFTA should speak volumes to our leaders.” In the letter, the groups emphasized that an updated trade deal is critical to ensure that all stakeholders can work together to provide the highest quality products at the greatest value for both the supply chain and consumers. Further, the letter states that an integrated supply chain between the three countries is only effective with NAFTA in place.