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China Offers $30 Billion More of U.S. Ag Purchases

China is proposing additional purchases of U.S. agriculture products of $30 billion a year in trade talks with the United States. Bloomberg reports the offer would be on top of pre-trade war levels and continue for an undefined period of time. Agriculture Secretary Sonny Perdue told reporters Thursday it was “premature” to comment on the proposal, adding he didn’t want to raise expectations. But, if an agreement is reached, Perdue says the U.S. structural reforms can “recover markets very, very quickly.” The proposal is part of the talks between trade officials from the U.S. and China taking place in Washington, D.C. this week. In response, Arlan Suderman of INTL FCStone, expressed caution, noting “China will say what needs to be said to get a deal, but the key component will be in the verification and enforcement.” The talks face a March 1 deadline, although President Trump has recently suggested he would consider extending the deadline.

Thursday’s Closing Grain Bids

February 21st, 2019

 

St Joseph

 

Yellow Corn

3.65

White Corn

no bid

Soybeans

8.56 – 8.61

LifeLine Foods

3.75

 

 

Atchison

Yellow Corn

 3.73 – 3.80

Soybeans

 8.61

Hard Wheat

 4.15

Soft Wheat

 4.36

 

 

Kansas City Truck Bids

Yellow Corn

3.63 – 3.81

White Corn

3.86 – 3.94

Soybeans

8.56 – 8.76

Hard Wheat

4.45 – 4.80

Soft Wheat

 4.62

Sorghum

5.99 – 6.08


USDA Cash Grain Prices

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

China Expanding Domestic Agriculture Reforms to Offset Future Trade Difficulties

The Chinese government says it will make changes in domestic agriculture policy to help it withstand potential trade difficulties in the future. The statement from Beijing comes after the country saw its weakest economic growth in almost three decades during 2018. For now, China remains entangled in a trade war with America.

The statement from government officials is known as the “No. 1 Document,” and it outlined plans to rejuvenate and improve living standards in rural China. One of the goals it set forth was becoming less reliant on oilseed imports. The document highlighted a plan to boost domestic soybean production, but it didn’t give any further details on the idea. Industry analysts told Reuters that they’re looking forward to more details in order to assess the potential impact of the plan to boost soy production in China.

Beijing has been looking to boost oilseed production even before the trade war with the U.S. began. The dispute led China to slap a tariff on U.S. soybean imports, which had the effect of tightening domestic supplies as China looked to other countries to fill in the gap. The policy document is calling for increasing stable grain production opportunities but also importing ag products where the domestic market comes up short. The Reuters article says that’s potentially good news for the U.S. on the other side of the trade war.

New Report Says Hold the Line on Chinese Tariffs, For Now

A new report out from the National Bureau of Asian Research warns the Trump Administration to temper its expectations on China significantly changing its economic policies. The bureau says China can’t make deep structural reforms to its economy in the 10 days before the March 1 deadline to produce a trade deal.

The report says the better strategy may be to keep tariffs on Chinese goods in place, potentially for years. The bureau also wants the U.S. to work with allies like the European Union and Japan to crank up international reform pressure on Beijing. “We don’t think inflicting collateral damage on the U.S. economy is a good thing,” says former Louisiana Representative Charles Boustany, one of the co-authors of the report. “All we’re saying is hold the line for now on tariffs, short of any kind of major breakthrough.”

The report’s authors say a good idea in the interim is to work on what they call “interim agreements.” An example would be the Chinese lifting tariffs on U.S. farm goods in exchange for Trump removing tariffs on Chinese electronic goods.

African Swine Fever Found in Vietnam

A report on Swine Health Dot Org says the Vietnamese Ministry of Agriculture released a communication confirming that the African Swine Fever Virus has been found in two northern provinces. The area is located about 100 miles from the Chinese border. Outbreaks appeared on three farms, and all of the infected animals have been culled from their herds.

Animal Health Department officials are testing the herds at neighboring farms. Local authorities in the region have put control measures in place to help limit any potential spread of the disease. Moving animals in the infected areas is restricted and quarantines are in place. Pork is a very popular protein in Asian countries and United Nations experts said the spread of ASF was highly likely. Pork is a major part of Vietnamese diets, making up 75 percent of the meat consumed in the country.

Vietnam has a population of 95 million people that consume most of its 30 million farm-raised pigs domestically. The Vietnamese Chief of Epidemiology says animal smuggling and tourism are making it difficult to protect Vietnam against ASF spreading further into the country.

Wednesday’s Closing Grain Bids

February 20th, 2019

 

St Joseph

 

Yellow Corn

3.59

White Corn

no bid

Soybeans

8.47

LifeLine Foods

3.70

 

 

Atchison

Yellow Corn

 3.68 – 3.75

Soybeans

 8.52

Hard Wheat

 4.10

Soft Wheat

 4.30

 

 

Kansas City Truck Bids

Yellow Corn

3.58 – 3.76

White Corn

3.89 – 3.94

Soybeans

8.48 – 8.68

Hard Wheat

4.40 – 4.75

Soft Wheat

 4.56

Sorghum

5.91 – 6.00


USDA Cash Grain Prices

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

Gov. Parson’s tractor ride kicks off FFA week

Governor Mike Parson kicked off National Future Farmers of America Week with a tractor ride. Photo courtesy Missourinet.

(Missourinet) – National Future Farmers of America Week celebrations are being held across the country, including in Missouri. Governor Mike Parson, a Republican and farmer from southwest Missouri’s Bolivar, found a special way to kick off the week.

On Tuesday, Parson rode a John Deere tractor between the governor’s mansion and the state Capitol in Jefferson City to celebrate Missouri FFA.

“Well, you know, every day you’re on a tractor is a good day for me. I enjoy it. I was on one this weekend but it wasn’t near as nice as this one,” Parson said.

Alongside the governor in that tractor was Missouri FFA president Paxton Dahmer of southwest Missouri’s Nevada.

“It was remarkable – definitely a once in a lifetime experience and awesome for FFA members to see what it’s like to have a farmer in the governor’s mansion,” said Dahmer.

Governor Parson and Missouri Agriculture Director Chris Chinn presented Dahmer with a proclamation, in the Captiol Rotunda, recognizing Missouri FFA during National FFA Week this week.

Parson, a cow-calf producer who continues to work his farm, has advice to young people involved in agriculture – the number one industry in the state.

“Learn as much as you can. Understand where the future of agriculture’s going, through science, through math, through technology,” said Parson. “All of those things are going to play a huge role in how we produce and how we meet the demands of the future. So, if there’s a young kid I’ll be talking out here it’s just tell them how important that role is and remember where they came from. Remember where those roots started.”

The National FFA was first organized in Kansas City in 1928 and is now more than 669,000 members strong. Missouri has 27,104 FFA members.

Farm Bureau Analysis Shows 2018 Farm Bankruptcy Statistics

An analysis by the American Farm Bureau Federation shows 2018 Chapter 12 family farmer and family fisherman bankruptcies nationwide were down from prior-year levels. Chapter 12 filings in 2018 totaled 498 and were down one percent, or three filings, from the 2017 calendar year, according to the AFBF Market Intel report.

AFBF notes, however, that the U.S. had fewer farmers in the U.S. in 2018 compared to 2017. And, the data shows bankruptcy filings in 19 states were higher than prior-year levels. In the Midwest, bankruptcies totaled 223 filings, up 19 percent from 2017 and double decade-ago levels. Farm bankruptcies in Wisconsin, the second largest dairy state, totaled 49 filings in 2018 – the highest in the nation and AFBF says the situation is likely to worsen.

Farm debt is record-high, and farm debt as a proportion of annual farm income is at 97 percent, a 32-year high. However, AFBF also points out that bankruptcy does not mean the loss of the family farm. Through a successful Chapter 12 bankruptcy, a farmer may have an opportunity to retain assets and continue the farm operation in some capacity.

New TPP Giving Canada Trade Boost in Japan

The new Trans-Pacific Partnership is boosting Canada’s beef sales to Japan. The new trade deal that does not include the United States has led to a surge in beef exports from Canada, although official numbers are not yet available. The Financial Times reports the new TPP, called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, could be costing the U.S. beef sector through the protectionism policies by the Trump administration that withdrew from the original trade deal.

Well-noted by the U.S. beef industry, the new TPP cut Japanese tariffs on imports of chilled beef from 38.7 percent to 27.5 percent, giving Australia, Canada and New Zealand and 11 percent tariff advantage over U.S. beef. The recent government shutdown delayed planned bilateral trade talks between the U.S. and Japan, but the talks are supposed to start soon. Japan has indicated it would give the U.S. similar tariff concession made to those in the TPP agreement.

China, U.S., Seek Agreement in Trade Talks

Trade talks between the U.S. and China resumed Tuesday as both nations seem optimistic to reach an agreement that would mark the end of a tit-for-tat trade war. Mid-level talks are ongoing, with higher-level talks expected Thursday that will include U.S. Trade Representative Robert Lighthizer and Secretary of Commerce, Wilbur Ross, according to the Washington Post.

The two sides “made headway” on “important and difficult” issues last week, according to Lighthizer. An agreement would be welcomed by U.S. agriculture, as China targeted U.S. farm goods throughout the trade war, including soybeans. However, more long-term damage may be lurking. China has been working to overhaul its agriculture structure in recent years, and a recent policy statement by China announced the nations intent to stimulate its rural economy.

The policy statement includes increased farm subsidies and the promotion of increased plantings of soybeans and other oilseeds. The statement is seen as another measure by China to increase domestic production of soybeans to reduce dependence on foreign nations.

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