The Department of Agriculture has ended a ten percent higher crop insurance coverage option for prevented planting claims. In a memo sent out to insurers and USDA’s Risk Management Agency field offices, USDA eliminated the Prevented Planting +10 Percent Option for the 2018 crop year and future crop years. USDA kept the five percent option for farmers, though analysis shows very few farmers have taken the five percent option, according to DTN. Some suspect that Agriculture Secretary Sonny Perdue wants to expand insurance policies for livestock and dairy producers, so the move may be a way to fund that initiative. The move comes after USDA changed prevented planting coverage factors for some crops last spring, which included lowering the coverage factor for corn from 60 percent to 55 percent.
Category: Agriculture
McKinney: farmers need NAFTA backup plan
Farmers need a backup plan if the U.S. exits the North American Free Trade Agreement, according to a top Department of Agriculture official. Ted McKinney, USDA undersecretary for trade and foreign agricultural affairs, told Agriculture.com that he “would advise anybody to be prepared with contingencies,” despite the administration knowing “very well where the farm and ag industries stand.” The ongoing talks to renegotiate NAFTA aren’t going as well as hoped, and McKinney says abandoning the trade agreement still seems to be a real possibility. While McKinney says he and others within the Agriculture Department are optimistic that the Trump administration will successfully “carry the day” during the negotiations, he says it would be prudent for crop and livestock producers to look at some contingencies in the event the U.S. were to exit the 23-year-old trade agreement.
Tuesday’s closing grain bids
December 12th, 2017
St Joseph |
|
Yellow Corn |
3.18 – 3.24 |
White Corn |
no bid |
Soybeans |
9.21 – 9.24 |
LifeLine Foods |
3.28 |
|
|
|
Atchison |
|
Yellow Corn |
3.28 – 3.29 |
Soybeans |
9.25 |
Hard Wheat |
3.36 |
Soft Wheat |
3.20 |
|
|
|
Kansas City Truck Bids |
|
Yellow Corn |
3.23 – 3.28 |
White Corn |
no bid |
Soybeans |
9.36 – 9.41 |
Hard Wheat |
3.94 |
Soft Wheat |
3.56-3.59 |
Sorghum |
5.58 |
For more information, contact the 680 KFEQ Farm Department.
816-233-8881.
Record Number of Soybean Processing Facilities Under Construction
As global demand for soybeans increase, so does the need for soy processing facilities. Reuters points out that U.S. agricultural cooperatives are building new soybean crushing plants at the fastest rate in two decades. That comes as U.S. farmers again are predicted to plant a record number of soybean acres next year. U.S. processors are expected to open plants with capacity to process at least 120 million bushels of soybeans in 2019, up around five percent from existing capacity of an estimated 1.9 billion bushels. The industry attributes the boom to the growth worldwide in the number of consumers with income to spend on pork and chicken, which has led to a rapid rise in demand for animal feed products. U.S. soy plantings totaled a record 90.2 million acres this year and the USDA in a preliminary forecast set plantings next year at 91.0 million acres.
Pilot Program Gives Canada Beef and Pork Exports Expanded Access to China
A pilot program is allowing exporters of Canadian beef and pork expanded access to China. The bilateral pilot project announced Monday will expand access to China for Canadian chilled beef and pork, and commit China and Canada to “fully implementing” an agreement reached last year to expand market access for Canadian frozen bone-in beef, according to AgCanada. Canadian beef exports until now have been limited to frozen boneless beef, with bone-in access approved last year, subject to setting up documentation requirements. The Canadian Cattlemen’s Association says China represents “massive potential” for Canada, and the Canadian Pork Council says the announcement comes at a “critical time” for the industry. Canada’s pork sector ships more than 70 percent of its product out of the country, and China is the second-biggest volume export market after the United States.
Farm Bill Coming Early Next Year
House Agriculture Committee leadership says the 2018 farm bill should be ready to move in the first quarter of next year. House Agriculture Committee Ranking Member Collin Peterson told the Red River Farm Network that markup on the bill will begin at the end of January, or the first part of February. A spokesperson for Committee Chairman Mike Conaway could not confirm the timing, but did say the bill will be ready in the first quarter of 2018. Peterson expects the bill to reach the House floor in February or March. That would follow a timeline outlined by Conaway earlier this year, whose office started working on the farm bill late this fall. Conaway said in August that he expected the farm bill to be ready for a House vote in early 2018.
Monday’s closing grain bids
December 11th, 2017
St Joseph |
|
Yellow Corn |
3.19 – 3.25 |
White Corn |
no bid |
Soybeans |
9.27 – 9.30 |
LifeLine Foods |
3.29 |
|
|
|
Atchison |
|
Yellow Corn |
3.27 – 3.29 |
Soybeans |
9.32 |
Hard Wheat |
3.37 |
Soft Wheat |
3.23 |
|
|
|
Kansas City Truck Bids |
|
Yellow Corn |
3.24 – 3.29 |
White Corn |
no bid |
Soybeans |
9.43 – 9.48 |
Hard Wheat |
3.96 |
Soft Wheat |
3.52-3.59 |
Sorghum |
5.61 |
For more information, contact the 680 KFEQ Farm Department.
816-233-8881.
Coalition Wants Injunction Against CA Glyphosate-Label Requirement
The National Association of Wheat Growers led a coalition of ag groups asking for a court mandate to stop California’s new labeling requirements for glyphosate. The groups are citing irreparable harm to farmers, consumers, and the nation’s agricultural economy. The groups are asking for a preliminary injunction against California’s Prop 65 regulation, which requires labeling any product that may contain glyphosate, such as commodities. NAWG President Gordon Stoner says the requirement will immediately cause irreparable harm to farmers and the national economy. “We’re asking the court for an injunction to immediately halt this action,” he says, “because a significant number of wheat growers use glyphosate and requiring these false and misleading labels will fundamentally change the way farming is done in America.” The coalition says their reputations will be significantly damaged if they’re forced to falsely label their products. They also point out that the agricultural production process is already regulated by the federal government to ensure consumer safety. The Prop 65 mandate was based on flawed research by the International Agency for Research on Cancer, which declared glyphosate as a probable carcinogen. The IARC members concealed and distorted data that showed glyphosate is a safe product.
Canadian Ambassador Optimistic on NAFTA Negotiations
Canada’s ambassador to the U.S. says the target date of March as a finishing point to the North American Free Trade Agreement negotiations is very possible. He tells Bloomberg it’s possible if the three sides can overcome some sticking points, including U.S. demands for tougher auto quotas. David McNaughton (Mick-Nawt’-uhn) tells Bloomberg he’s hopeful the deal with be done by March. “Certainly, I think the deal has been good for all three countries,” he says, “and we’ve put some pretty constructive alternatives on the table.” Negotiators have updated several chapters of the pact already and are getting close on several others. Canadian and Mexican negotiators are heading back to Washington for the next round of talks that begins on Monday. The three sides have several issues to work through yet, including a U.S. proposal for a five-year sunset-clause to the deal. McNaughton says U.S. proposals to boost American content in automobiles from the NAFTA countries won’t work for the U.S. auto industry. “The American auto industry has said the American proposals during the negotiations will make the industry less competitive,” he adds. Negotiators have scheduled March as the target date because of Mexico’s presidential election on July 1.
Can Corn and Oil Live Together?
Oil-state Republican legislators met with President Trump on Thursday to discuss the Renewable Fuels Standard. They left with a directive from the president to figure out a compromise that would work out for both the oil and renewable fuels industries. Politico says Oklahoma Senator Jim Inhofe was one of the lawmakers who met with Trump. “The president wants us to come to him with something that’s going to make both sides happy, and I believe we can to it,” Inhofe says, “and I believe he thinks we can do it.” Inhofe and Senator John Cornyn of Texas have already begun working with corn-state senators on a possible compromise. In the meantime, Texas Senator Ted Cruz is still holding up the nomination of Bill Northey to a USDA post. It’s a retaliatory move after corn-state senators killed an effort by the Environmental Protection Agency to weaken the Renewable Fuels Standard. After the meeting with Trump, Cruz says he’s optimistic they can find a fix to please all sides. He did not say if he’d lift his hold on Northey’s nomination. EPA administrator Scott Pruitt says there may be some administrative actions available to help refiners cut some of the costs they face to stay in compliance with the RFS.