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Trump Tariffs Must Go Before USMCA Vote in Congress

As agriculture lobbies Congress to introduce and pass the U.S.-Mexico-Canada Trade Agreement, there could be a battle brewing over the ending of U.S. trade tariffs. Iowa Republican Senator Chuck Grassley says there is no way Congress will consider the new North American trade deal until President Trump lifts the tariffs that have caused other countries to implement retaliatory tariffs that have hit U.S. farmers hard. Grassley told reporters this week that Trump has to end the steel and aluminum tariffs in place on our North American trading partners before Congress will take up the USMCA Agreement. Farmers across the country have been suffering economically because of the reciprocal tariffs in place on all kinds of agricultural products. Grassley says tariffs could also make it more difficult to get a trade deal done with China. Grassley was expecting to meet Thursday face-to-face with Trump at the White House to talk trade. The long-time Senator says tariffs are “keeping the president on the cusp of a big win” with Canada and Mexico, especially as he’s days or weeks away from potentially establishing a trade agreement with China. An Associated Press report says the President is hesitant to remove the tariffs because he feels they’ve forced other countries to make deals more favorable to the U.S.

EPA Considering Compromise Plan on Ethanol Waivers

Two industry sources have told Politico that Environmental Protection Agency Administrator Andrew Wheeler is looking at a compromise plan when it comes to ethanol waivers. Wheeler is considering a plan that would offer small refineries partial relief from blending requirements set forth in the Renewable Fuels Standard. Politico says the move could be a potential compromise between the ethanol and oil industries, two of President Trump’s core support groups. 36 refineries have sent in requests for exemptions from their 2018 blending requirements. Corn and ethanol groups say the waivers continue to undermine the ethanol standard and reduce demand for the biofuel. A Reuters report from Wednesday says the EPA has suspended a plan that would publish the names of each refinery that gets a biofuel blending exemption. Both the White House and the oil industry came out in opposition to making the names public. A group of Republican senators asked Wheeler to account for the ethanol blend wall and reset statutory targets so that the contributions of conventional biofuel is below an implied 10 percent level for 2020, or 14.2 billion gallons. The Renewable Fuels Association says the EPA should instead utilize its reset authority to reallocate lost volumes from its excessive use of small refinery waivers.

Missouri Senate passes bill on industrial farms

JEFFERSON CITY, Mo. (AP) — The Missouri Senate has passed a bill to block local officials from regulating industrial farms more strictly than the state does.

Senators voted 23-11 Thursday to send the bill to the House.

The measure sparked an overnight debate earlier this week over the environmental impact of large farms, local control and actions by some county officials that critics say threaten to regulate industrial farms out of existence.

Supporters of the bill say it will help ensure farmers can make a living in rural Missouri.

Industrial farms known as concentrated animal feeding operations allow for more efficient production of beef, pork, poultry, dairy and eggs. They’ve also stoked concerns about air and water pollution.

Lawmakers face a May 17 deadline to pass legislation.

Thursday’s closing grain bids

May 2nd, 2019

 

St Joseph

 

Yellow Corn

3.47 – 3.58

White Corn

no bid

Soybeans

7.83 – 7.98

LifeLine Foods

3.71

 

 

Atchison

Yellow Corn

 3.62 – 3.80

Soybeans

 7.78

Hard Wheat

 3.80

Soft Wheat

 4.04

 

 

Kansas City Truck Bids

Yellow Corn

3.61 – 3.80

White Corn

3.78 – 3.82

Soybeans

7.93 – 8.03

Hard Wheat

3.95 – 4.32

Soft Wheat

 4.14 – 4.34

Sorghum

5.83 – 5.93


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

Peterson: South America seeks improved infrastructure to become stronger

Following a trip to South America, House Agriculture Committee Chairman Collin Peterson said he believes South America as a competitor to the U.S. will “only become stronger with time.” Peterson led a delegation to South America to see firsthand its impact and potential in global agricultural trade.

The delegation saw the commitment South America has to improve its infrastructure, a key issue holding back the region when it comes to exports. During meetings, the delegation learned that the country is looking to attract billions in private investment to improve the country’s infrastructure, and in particular the capacity of its agricultural supply chain.

Peterson says “it’s only a matter of time” before infrastructure investments improve the export of agricultural products, and “cut into” the competitive advantage the U.S. enjoys over South America. Further, Peterson says the Chinese are “happy to buy everything the South Americans can grow” right now, while the U.S. is embattled in trade negotiations and facing retaliatory tariffs.

New national poll shows impacts of rural economy on farmer mental health

A majority of farmers and farmworkers say financial issues, farm or business problems and fear of losing the farm impact farmers’ mental health. Other factors included stress, weather, the economy, isolation and social stigma, according to a new national poll by Morning Consult commissioned by the American Farm Bureau Federation.

Polling found that many rural adults have either personally sought care or have a family member who has sought care for a mental health condition. Three in four rural adults, 75 percent said it’s important to reduce the stigma about mental health in the agriculture community, while two in three farmers and farmworkers, 66 percent, said the same.

Large majorities of rural Americans polled agreed that cost, social stigma and embarrassment would make it harder for them to seek help or treatment for mental health conditions. In response to the results, AFBF President Zippy Duvall said, “we can and must do more to address farmer stress and mental health issues in rural America.”

Outlook for May China agreement positive

Optimism is growing that the U.S. and China could wrap up a trade agreement this month. Trade officials from the U.S. and China concluded talks in Beijing Wednesday with another critical round scheduled for next week in the United States. But the Trump administration has appeared to be ready to walk away if an agreement isn’t reached soon.

However, Treasury Secretary Steven Mnuchin said on Twitter that he and Trade Representative Robert Lighthizer have concluded “productive meetings” this week. The South China Morning Post reports that the U.S. has dropped the demand that China halts alleged instances of commercial cyber theft, to bring an end to the long-running tariff dispute.

A deal at this point between the U.S. and China is expected in Mid-May, with a possible signing of the agreement planned for June. However, an agreement doesn’t mean an end to tariffs. The U.S. is planning on keeping some tariffs on China, and China will likely keep retaliatory tariffs on U.S. agricultural products, according to a Chinese trade expert.

Wednesday’s closing grain bids

May 1st, 2019

 

St Joseph

 

Yellow Corn

3.45 – 3.54

White Corn

no bid

Soybeans

7.92 – 8.06

LifeLine Foods

3.69

 

 

Atchison

Yellow Corn

 3.60 – 3.78

Soybeans

 7.86

Hard Wheat

 3.75

Soft Wheat

 3.96

 

 

Kansas City Truck Bids

Yellow Corn

3.58 – 3.77

White Corn

3.73 – 3.80

Soybeans

8.02 – 8.09

Hard Wheat

3.90 – 4.27

Soft Wheat

 4.06 – 4.26

Sorghum

5.79 – 5.89


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

Mexican labor bill a step towards USMCA

Lawmakers in Mexico this week took a step towards implementing the U.S.-Mexico-Canada Agreement that will replace the North American Free Trade Agreement. Mexico’s Senate approved a bill that overhauls the country’s labor code. The move was a pre-condition for U.S. Democrats in the House of Representatives for considering the agreement.

Bloomberg News reports Mexican lawmakers raced to pass the bill before the end of their session Tuesday to allow their counterparts in the U.S. to take up discussion of the trade deal. Mexico’s Senate voted 120-0 in favor of the bill that was previously passed by the nation’s lower chamber. The bill gives workers the right to vote on unions and labor contracts through secret ballots.

However, to complete USMCA, other conditions remain, including the desired removal of section 232 steel and aluminum tariffs on Canada and Mexico. Canada has hinted that the nation may not approve USMCA until the tariffs are removed. U.S. lawmakers are expected to consider the trade agreement later this year.

Canada and Japan strengthening trade relationship

Following a visit to the United States, Japan’s Prime Minister met with Justin Trudeau of Canada to strengthen trade ties. In a news release from Canada, officials say the two leaders reaffirmed their commitment to strengthen the strategic partnership between Canada and Japan.

The two leaders also discussed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which Canada says is already creating good, middle-class jobs and new opportunities for businesses in Canada and Japan. Canada and Japan are partners in the CPTPP, a free trade agreement between Canada and ten other countries in the Asia-Pacific region, which was created after the U.S. left the Trans-Pacific Partnership.

Canada agriculture has preferential tariffs now for products to Japan, compared with the United States. Japan was the number one importer of Canadian pork in 2018 worth C$1.3 billion. Prime Minister of Japan, Shinzo Abe and Trudeau finalized two memorandums on trade focusing on tech innovation and trade, as part of their meetings last week.

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