Ranking Senate Agriculture Committee Democrat Debbie Stabenow praised the addition of a trade undersecretary at the Department of Agriculture, but is concerned with the proposed rural development changes. The reorganization proposal for USDA would eliminate the undersecretary for rural development. Stabenow says the role is “an important voice for rural America” adding the proposal would bypass Congress’s role to confirm a qualified nominee. USDA Secretary Sonny Perdue says the move would simply have the person in charge of rural development closer to his office. The National Sustainable Agriculture Coalition says the move is “trading away” rural, domestic priorities in favor of boosting international trade. However, the Coalition notes that all USDA undersecretaries already report directly to the Agriculture Secretary, and say the demotion, taken together with the Administration’s recent attempt to wipe out rural business programs through the appropriations process, “sends a clear signal that the President does not understand the critical nature of rural development to the American economy.” USDA is encouraging the public to provide input on the plan.

The National Chicken Council says the announcement that U.S. beef exports will return to China is a positive step towards resuming chicken exports to China as well. U.S. chicken has been blocked by China since January 2015, when the country issued a blanket ban on all U.S. poultry over issues related to avian influenza. In a news release, NCC President Mike Brown encouraged the administration to “continue their work to remove China’s obstacles preventing U.S. broiler access to their marketplace.” Poultry exports to China peaked in 2008, with an export value of $722 million. The trade deal announced by the White House will also allow Chinese companies to export cooked poultry products to the United States.

The North American Meat Institute says U.S. beef exports to China could be worth an estimated $2.6 billion, once allowed. The White House announced a deal with China to open the market to U.S. beef no later than July 16th. China has been closed to U.S. beef for nearly 14 years after a case of bovine spongiform encephalopathy that occurred in Washington state in December 2003. National Cattlemen’s Beef Association President Craig Uden stated: “It’s impossible to overstate how beneficial this will be for America’s cattle producers.” Meat industry publication Meatingplace points out that China has twice before agreed to grant market access to U.S. beef, but regulatory hurdles have prevented any real trade from materializing, and U.S. beef industry stakeholders applauded a similar announcement last September.

The Environmental Protection Agency announced it would delay implementation of the Pesticide Applicators rule. Missouri Governor Eric Greitens says the action follows his recommendation to EPA Administrator Scott Pruitt during a meeting to delay the rule. Greitens says the recommendation was made at the request of Missouri farmers and ranchers. The move, according to the Missouri Governor, proved “the old way of doing business at the EPA is over and done with.” Pruitt said the EPA would delay the rule for 12 months. The Pesticide Applicators Rule would establish a minimum age of 18 and stricter training requirements for people who apply restricted-use pesticides. The extended timeline, according to Pruitt, will give the EPA more time to consult with states and receive feedback from farmers and ranchers about the rule.

The Midwest farm economy in the Tenth Federal Reserve District weakened in the first quarter of 2017, but conditions varied from east to west. The Kansas City Federal Reserve Bank’s Agriculture Credit Conditions survey reports farm income, loan repayment rates, and the value of most types of farmland all trended lower in each of the districts seven states. However, the deterioration in the western portion of the district was more severe than the moderate weakness in the eastern portion. The district includes Colorado, Missouri, Kansas, Nebraska, New Mexico, Oklahoma and Wyoming. Since 2014, following a drop in the prices of major row crops, farm income has fallen more sharply in the Mountain States and the western portion of Nebraska, Kansas and Oklahoma. According to the survey, the gap between the two regions widened during the first quarter of this year. Alongside persistent weakness in cattle and wheat markets, more than 80 percent of bankers indicated farm income was lower than a year ago in the western part of the district versus about 60 percent in the eastern part.

Agriculture Secretary Sonny Perdue’s announcement of a USDA undersecretary on trade was met with open arms by farm groups. The Department of Agriculture will be reorganized to include a trade secretary. He made the announcement to the public during a tour of a grain shipping facility in Cincinnati, Ohio, Thursday afternoon. In a letter to Senate Agriculture Chairman Pat Roberts, Perdue said the move follows “Congress’s directive in the 2014 farm bill.” Congress directed USDA to establish an undersecretary for trade and foreign agricultural Affairs and realign the Foreign Agricultural Service to report to the new trade undersecretary. Perdue also announced the creation of an undersecretary for Farm Production and Conservation, which will oversee the Farm Service Agency, the Natural Resources and Conservation Service, and the Risk Management Agency. The reorganization also includes eliminating the Rural Development Undersecretary, having the division report directly to Secretary Perdue. In the letter, Perdue stated: “This realignment will re-orient our approach to serving producers and improve our responsiveness to the needs of producers.”

Agriculture Secretary Sonny Perdue will take part in a House Agriculture Committee hearing next week on the rural economy. The House Agriculture Committee will hold the hearing next Wednesday, May 17th. The hearing seeks testimony on how the rural and farm economy is holding up amid a downturn in farm income and commodity prices. House Agriculture Committee Chairman Mike Conaway notes that the farm economy is in the midst of a four-year, 50 percent decline. He says Secretary Perdue will share his perspective on the economic outlook in rural America, along with his vision for USDA and the role it will play in ensuring that our country “continues to enjoy the safest, most abundant, and most affordable food supply in the world.”

U.S. agriculture stands to lose big if a trade dispute with Mexico or Canada surfaces. CoBank CEO Tom Halverson told Bloomberg News recently that agriculture is in a “vulnerable position.” President Trump withdrew the U.S. from the Trans-Pacific Partnership and is vowing to renegotiate the North American Free Trade Agreement. However, as Halverson point out, Mexico is considering Brazil and Argentina as potential trade partners for corn. He says the prospect of a dispute with a major trading partner like Mexico is the last thing that many farmers, ranchers and grain handlers in the U.S. would like to see right now, adding agriculture has already suffered through several years of low commodity prices and a strong dollar, which has made overseas sales tougher. He cautions that weak prices are affecting some agribusinesses that borrow from CoBank, and that’s starting to impact credit quality, and suggest that trade problems could put further pressure on cash flow and credit quality.