The United States still demands a dairy fix in the North American Free Trade Agreement, but Canada still wants to protect its dairy industry. While Canada may be ready to give some concessions on dairy market access, Prime Minister Justin Trudeau and his allies have strong political motivations to stand firm. A trade lawyer told Politico this week that much of the focus is on Canada’s Class 7 milk, a class created last year that has disrupted trade between the U.S. and Canada. The trade expert says those talks are “highly technical” and will take days to complete, but suggested an agreement is still possible, “even likely this week.” Talks between the U.S. and Canada are expected to continue with an overall goal to complete the agreement by the end of this month. Mexico officials are also back in Washington, DC to propel the handshake agreement between the U.S. and Mexico forward.
Category: Agriculture
Garth Brooks Announces Private Concert for the National FFA Organization
Garth Brooks, will take the stage in Indianapolis for a private show at this year’s 91st National FFA Convention & Expo. The youth leadership organization is dedicated to preparing members for leadership and careers in the science, business and technology of agriculture, and boasts a membership of nearly 670,000 nationwide. The National FFA Convention & Expo remains one of the largest student conventions in the world, annually drawing more than 65,000 attendees. “The National FFA Convention & Expo is a celebration of our members, and what better way to celebrate by providing them the opportunity to hear a legend perform at our convention,” says Mark Poeschl, CEO of the National FFA Organization. “I’m excited to welcome Garth and his team to the National FFA Convention. I know our guests will be thrilled to experience Garth in concert!” Garth will take the stage Oct. 24 at Lucas Oil Stadium for a once in a lifetime experience for the exclusive crowd attending this year’s national FFA convention and expo.
Monday’s Closing Grain Bids
September 17th, 2018
St Joseph |
|
Yellow Corn |
3.20 |
White Corn |
no bid |
Soybeans |
7.43 – 7.58 |
LifeLine Foods |
3.28 |
|
|
|
Atchison |
|
Yellow Corn |
3.08 |
Soybeans |
7.40 |
Hard Wheat |
4.52 |
Soft Wheat |
4.31 |
|
|
|
Kansas City Truck Bids |
|
Yellow Corn |
3.17 – 3.18 |
White Corn |
3.48 – 3.18 |
Soybeans |
7.79 |
Hard Wheat |
5.13 |
Soft Wheat |
4.81 |
Sorghum |
5.14 |
For more information, contact the 680 KFEQ Farm Department.
816-233-8881.
Mexico Heading to Washington to Move NAFTA Forward
Mexican officials are on their way to Washington to work on the wording of the trade agreement between Mexico and the U.S. A Bloomberg article says they’re prepared to enter a bilateral agreement with the U.S. that would leave current NAFTA partner Canada out of the trading block. Kenneth Smith Ramos, Director of Trade and the NAFTA Office at the Mexican Embassy in Washington, will work on the wording of the agreement that President Donald Trump intends to sign by the end of November. Ramos will be the first high-level Mexican official to make the trip to Washington, D.C. since they announced the framework of an agreement in August. In the meantime, Canadian officials are huddling with Prime Minister Justin Trudeau only two weeks after the nation rejoined the talks. Mexico has been vocal in wanting Canada to stay in the pact but is preparing for life without the third trading partner. Canadian Foreign Minister Chrystia Freeland is leading the efforts to hammer out a deal. Trudeau says on television that Canada won’t sign any agreement that isn’t too Canada’s advantage.
Trump: the U.S. Under “No Pressure” to Make Deal with China
President Donald Trump pushed back at the Wall Street Journal, which ran an article saying the U.S. was under pressure to make a deal with China. The Hill Dot Com says Treasury Secretary Steven Mnuchin (Muh-NOO-chin) recently invited Chinese officials to come to Washington for negotiations, which Beijing accepted. The Wall Street Journal reported that the invite came about because of political pressure on Trump to at least ease up on trade fights ahead of the November midterms. Trump announced on Twitter that, “The Wall Street Journal has it wrong. We are under no pressure to make a deal with China. They are under pressure to make a deal with us. Our markets are surging, theirs are collapsing. We’ll soon be taking in billions in tariffs and making products at home. If we meet, we meet.” While the U.S. economy is seeing faster economic growth and joblessness at near record-low levels, China’s economy is facing long-term questions, including a sharp drop in its currency value. A new group called Americans for Free Trade launched an advertising campaign to fight back against Trump’s tariffs, saying they’re hurting the U.S. economy.
Senators Grill Administration Officials at Trade Hearing
Ag state senators peppered Trump Administration officials at USDA and the Office of the Trade Representative with questions regarding trade policy. The Thursday hearing focused on the Trump Administration’s policies and the resulting harm to American farmers from retaliatory tariffs. Politico says both Republicans and Democrats gave an earful to USDA chief economist Robert Johansson, Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney, and USTR chief agricultural negotiator Gregg Doud. The questions boiled down to “when does the pain end for farmers?” Joe Donnelly of Indiana says, “It seems like the light at the end of the tunnel is a train coming at my farmers. They need to know there’s an off-ramp or an end to this.” John Thune of South Dakota says the concern and anxiety level is continuing to rise in farm country. “My impression is that fact seems to fall on deaf ears around here,” Thune says. Republicans asked about the possibility of rejoining the 11-member Trans-Pacific Partnership. Doud responded by saying the president is correct to prefer a bilateral approach. Thune responded with, “We’ve heard that we’re working on bilateral agreements since pulling out of TPP. I don’t see any evidence of that.”
Friday’s Closing Grain Bids
September 14th, 2018
St Joseph |
|
Yellow Corn |
3.24 |
White Corn |
3.24 |
Soybeans |
7.50 – 7.64 |
LifeLine Foods |
3.32 |
|
|
|
Atchison |
|
Yellow Corn |
3.14 – 3.17 |
Soybeans |
7.50 |
Hard Wheat |
4.56 |
Soft Wheat |
4.36 |
|
|
|
Kansas City Truck Bids |
|
Yellow Corn |
3.21 – 3.22 |
White Corn |
3.50 – 3.53 |
Soybeans |
7.86 |
Hard Wheat |
5.16 |
Soft Wheat |
4.87 |
Sorghum |
5.21 |
For more information, contact the 680 KFEQ Farm Department.
816-233-8881.
China Cuts Soybean Import Forecast

China this week lowered its forecast for the 2018-2019 import season for soybeans due to the trade conflict between the U.S. and China. Farmers are reducing their use of soybeans in animal feed in China as China has placed massive tariffs on U.S. soybeans. Imports of soybeans in the crop year that starts on October first will be 83.65 million metric tons, down 10.2 million from last month’s estimate of 93.85 million, according to China’s Ministry of Agriculture and Rural Affairs. Overall, the forecast is lower than the 93.9 million metric tons imported during the 2017-2018 crop year. China also claims the lower forecast is due to the promotion of lower-protein feed for livestock and poultry, and falling profits at pig farms reducing demand for soybean meal. China also raised its corn demand outlook on rising feed consumption and an expected increased ethanol production. Reuters reports that the outlook illustrates how China’s vast pig farming sector is rapidly adjusting to a possible prolonged trade dispute with Washington. In July, China imposed an additional 25 percent tariff on U.S. soybeans.
USDA Details Trade Damage Estimate Calculations
The Department of Agriculture Thursday released details of the trade aid package calculations for payments, a method previously unknown and questioned by some ag sectors. As the Trump Administration talked with lawmakers on the trade package, Agriculture Secretary Sonny Perdue released a “detailed accounting” of how USDA calculated estimated damage from trade disruptions. Perdue says the Chief Economist office of USDA developed an estimate of gross trade damages for commodities with assessed retaliatory tariffs by Canada, China, the European Union, Mexico, and Turkey to set commodity payment rates and purchase levels in the trade mitigation package announced by USDA earlier this month. Perdue says USDA used the same approach often used in World Trade Organization trade dispute cases. The full description of the Trade Damage Estimation for the Market Facilitation Program and Food Purchase and Distribution Program is available on the website of USDA’s Office of the Chief Economist.
Farm Bill Passage On-time Uncertain
Time to finish the farm bill before the September 30th deadline is running out. House and Senate ag leaders are working to quickly iron out differences between the two versions of the bill, but many believed the conference committee needed to wrap up this week to get a bill on-time. The Senate adjourned Wednesday night until Monday, and the House is scheduled to be out for recess all of next week. Senate Ag Committee Chair Pat Roberts told Politico talks could continue next week if Mike Conaway and Collin Peterson of the House Agriculture Committee return to Washington. Roberts says: “next week might be the final time that we have to reach some kind of agreement,” but added “the world doesn’t end” if no agreement is made next week. The biggest difference is the House version’s inclusion of work requirements in the Supplemental Nutrition Assistance Program. The work requirements are facing steep opposition from the other three committee leaders, Roberts, and top Senate ag Democrat Debbie Stabenow, along with Peterson of the House. President Trump attacked Stabenow via Twitter, saying her and other Democrats are “Against approving the farm bill.” However, Stabenow and Roberts have said work requirements will not pass the Senate.