WTO approves $1 billion in tariffs in response to COOL

The World Trade Organization (WTO) on December 7 ruled that Canada and Mexico can hit the United States with more than $1 billion in tariffs on U.S. goods in retaliation after the U.S. failed to repeal its country of origin labeling (COOL) laws.
The WTO issued the ruling nearly 6 months after it had considered the COOL laws, which require that meat be labeled with the country where the animal from which it was derived was born, raised and harvested. Mexico and Canada had issued a complaint with the WTO, stating that the COOL laws discriminate against Mexican beef and pork. COOL also has provisions affecting poultry and seafood.
The Canadian and Mexican governments had previously stated it would seek retaliatory measures, and upon receiving word that the WTO ruled those retaliatory measures can be pursued, Canadian authorities emphasized its continued desire to implement tariffs on U.S. goods.
“If the U.S. Senate does not take immediate action to repeal COOL for beef and pork, Canada will quickly take steps to retaliate,” Chrystia Freeland, Canadian minister of International Trade, and Lawrence MacAulay, minister of Agriculture and Agri-Food, said in a joint statement. “Canada continues to work with our partners in the United States, and in the U.S. Senate, to urge the full repeal of the discriminatory COOL policy for beef and pork.”

US agriculture groups urge Congress to repeal COOL

While the U.S. House of Representatives in June approved a bill that called for the repeal of COOL, similar legislation in the Senate that was advocated by Senate Agriculture Committee Chairman Pat Roberts did not gain approval.
Since learning of the WTO’s ruling, several agriculture groups have released statements urging the repeal of COOL.
"I am keenly aware that chicken and fowl could be at the top of the list for retaliation by Canada and Mexico, and that this labeling law continues to leave the door open for retaliatory action by other countries, too," said National Chicken Council (NCC) President Mike Brown.  "NCC supports legislative action that will bring U.S. laws and regulations pertaining to meat and poultry into full compliance with our international trade obligations.  NCC urges Congress to repeal the labeling provision for chicken, beef and pork now."
“America’s pork producers need congressional lawmakers to recognize the imminent harm our economy faces,” said National Pork Producers Council (NPPC) President Dr. Ron Prestage. “Retaliation has been authorized, and our exports to the No. 1 and No. 2 markets will suffer and so will U.S. farmers, business people and consumers. We need Congress to repeal the labeling provision for beef, pork and poultry now.”
The American Farm Bureau Federation stated that it supports country of origin labeling that meets WTO requirements, but added “the risk of retaliation by Canada and Mexico is too great. U.S. farmers and ranchers could suffer a serious blow if Congress does not act quickly.”

Can you name the next agriculture industry reality show?

I have served on the U.S. Farmers & Ranchers Alliance (USFRA)’s Communications Committee for several years and have had the opportunity to provide input into the various activities for which USFRA engages each year, including a recent foray into the entertainment industry’s world. Through Farmers & Ranchers Alliance Food Dialogues and other events, I see and hear firsthand how the entertainment industry views the agriculture industry. To them, farmers and ranchers are country bumpkins holding pitchforks with banjos and “Green Acres” playing in the background!
In fact, on a recent trip arranged by Ketchum to meet with several prominent Hollywood production companies, USFRA Chairwoman Nancy Kavazanjian and USFRA CEO Randy Krotz shared how they were pitched a variety of creative concepts for America’s “next big farm show.” These production companies have teams who are behind many of today’s popular reality TV programs, including “The Deadliest Catch,” “Pawn Stars,” “Top Chef” and “Project Runway.” While they demonstrated enthusiasm and creativity, Kavazanjian and Krotz remarked that the production companies' vision of U.S. farming and ranching really does start and end with farmer’s markets and American gothic scenes. This was obvious from the concepts that were presented, with the majority focusing on one of four basic themes: (1) fish-out-of-water survival swap; (2) city vs. rural contest; (3) farm makeover; and (4) back-to-the-land experience.
As Kavazanjian said, “Many of these concepts would have been funny, if not so tragic for today’s farmers and ranchers.”

Can entertainment industry views be changed?

So, can the entertainment industry’s view of agriculture be changed?
The documentary film, "Farmland," is continuing to go a long way in correcting the misconceptions and stereotypes surrounding modern agriculture and in allowing USFRA to capture the entertainment industry’s attention. By taking the time and effort to visit with Hollywood production companies and sharing the success of "Farmland," USFRA is now able to connect and engage in significant dialogue with important entertainment industry players.
USFRA is looking to stay actively involved and focused on developing partnerships with the entertainment industry through a movement called “Farmland 2.0,” by increasing efforts to infuse real faces, voices and experiences of farmers and ranchers with America’s pop culture movers and shakers. The details for the movement are currently in development, so stay tuned!
I am excited about USFRA’s foray into the entertainment industry and think the entertainment industry’s view of agriculture can be changed, though it will not happen overnight. However, an effort has to be made, because I can honestly say the absolute last thing I want to see on TV is an agriculture reality show that is a cross between the Kardashains and Duck Dynasty! I shudder at the mere thought.

A look at agriculture markets for 2015

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  Attendees at the American Farm Bureau Federation received an update and analysis on the agriculture markets in 2015.

  From WATTAgNet:
  University of Missouri ag economics professor Patrick Westhoff recently gave attendees at the American Farm Bureau Federation an update and analysis on the agriculture markets in 2015.
  Westhoff predicted a 6.5 percent growth in China’s gross domestic product, 3.5 percent in Mexico and 1 to 2 percent in the European Union. He said exchange rates with the euro and yen will be stronger while the Chinese yuan will be down and the Brazil real will be up.
  Westhoff noted that the January USDA estimates show corn will be bringing $3.65 per bushel, while soybean prices will range from $9.45 to $10.95 per bushel. He said there will be a decline in corn acreage with a lot of competition for exports, but an increase in soybean acres.
  Soybean “harvest ended up at about where they expected, so we now have 410 million bushels in ending stocks for 2014-15, up substantially from 92 million bushels in 2013-14," he said.
  Total crop acreage for 2015 in the United States is estimated at 57 million acres for wheat, 84.8 million acres of soybeans, 87.9 in corn, and 7.2 sorghum with a 13-crop total at 261.8 million.
  Westhoff said large corn and soybean crops will pull down grain and oilseed prices.
  "As always, weather, oil prices and other factors will drive annual swings in prices," he said.

Farmer voice matters in building consumer trust

Farmers will need to engage in conversations with consumers for the long term if they are to build trust in today’s food system.
That was among the messages delivered by Charlie Arnot, CEO of the Center for Food Integrity (CFI), at the American Farm Bureau Federation’s (AFBF) 96th Annual Convention and IDEAg Trade Show. “Farmers are accustomed to fixing things in the next production cycle. Building trust with consumers has a longer horizon,” said Arnot, who presented findings from CFI’s 2014 consumer research into consumer skepticism, trending attitudes and trust-building transparency. The research was sponsored, in part, by AFBF.
The survey of 2,005 people looked into the concerns and attitudes of three groups of people: moms, millennials and foodies. Millennials are described as those ages 18-34. Foodies are people who are more likely to seek out information about food and food ingredients and to share information about cooking, food safety and nutrition.
CFI’s research showed that keeping healthy food affordable is a high priority for all three segments. Arnot called that finding “very good news” for those involved in food production when it comes to talking with consumers. “Everything you do can be talked about in that context,” he said. “If we address consumer concerns in that context, our messages will be better received.”
Arnot said that demonstrating shared values is more effective than demonstrating competence when it comes to building trust with consumers. “The goal is not to win a scientific argument, but to find meaningful and relevant ways to introduce science and technology. We’re really good at answering the ‘can we’ question. We need to get better at answering the ‘should we’ question. Educating the public is important, but it isn’t sufficient,” said Arnot.

Pat Roberts named Senate ag committee chairman

Sen. Pat Roberts has been named chairman of the U.S. Senate agriculture committee. 
Sen. Pat Roberts, R-Kansas, on January 8 was selected to chair the U.S. Senate Committee on Agriculture, Nutrition and Forestry.
Roberts makes history becoming the first member of Congress to hold the top agriculture post in both the U.S. House of Representatives and now in the U.S. Senate. He chaired the House ag committee from 1995 to 1997
“I am honored to work for America’s farmers and ranchers,” Roberts said. “I am proud to bring Kansas leadership to the committee. I look forward to an aggressive schedule with hearings providing much needed oversight of our farm programs, school meals, the United States Department of Agriculture, the Commodity Futures Trading Commission, and the Environmental Protection Agency. I am humbled to serve as chairman and will continue to be a champion for rural Kansas.
“Production agriculture must rise to face a daunting challenge: feeding a growing and hungry global population. I will work to see that the federal government is an ally, not an adversary, in this purpose. I will fight to ensure farmers and ranchers have the tools they need to advance American agriculture. I will fight barriers to trade opportunities and regulations that threaten our producers’ competitiveness. And I will continue my work to maintain the security of our food supply and ensure science based regulations govern our food and agriculture sectors.”
Debbie Stabenow, D-Mich., preceded Roberts as the Senate agriculture committee chair. She will continue to serve on the committee as the ranking member.
Roberts’ priorities will include oversight of USDA programs and policies and further hearings on farm bill implementation. The committee will debate reauthorization of laws dealing with commodity trading, child nutrition, school meal programs and grain inspection.

Rocky year for crops, livestock in 2014

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  Fluctuating weather and markets bounced farmers and ranchers around in 2014.

  From WATTAgNet:
  Fluctuating weather and markets bounced farmers and ranchers around in 2014.
  The year started with a meager winter wheat harvest, but spring rains paved the way for a record corn harvest and strong soybean and sorghum yields. Cattle producers saw high livestock prices and low feed costs.
  "On the livestock side it was very, very good because of high prices. On the crop side, we certainly had lower prices," said Dan O'Brien, a Kansas State University extension specialist.
  In the Midwest U.S., fall and summer rains led to the strong corn, soybean and sorghum harvests, but grain prices tumbled to much lower levels than previously forecast. Corn prices fell 40 percent before recovering and are now down 24 percent for the year. Other fall crop prices are barely above the break-even point.
  "The challenge is, 'Do people still own the wheat or did they let it go at lower prices?'" O'Brien said. The average break-even price of wheat in Kansas was $5.46 per bushel, but with the recent rally, it's selling at around $6.63, he said.
  The weather outlook for January through March 2015 calls for wetter-than-normal conditions in the Midwest.
  "It's not as pronounced, but it's not cured," O'Brien said. "It is premature to say we are out of the drought." 

K. Michael Conaway to chair US House Agriculture Committee

Rep. K. Michael Conaway, R-Texas, has been chosen to serve as the 50th chairman of the House Agriculture Committee. He replaces Rep. Frank Lucas, R-Oklahoma, who is expected to remain on the committee but had to relinquish his leadership position because of rules of term limits.
“I am humbled and honored to be selected as the 50th chairman of the storied House Committee on Agriculture.  The work that farmers and ranchers do is part of our country’s foundation. They feed, fuel, and clothe our nation. I look forward to building on the bipartisan work of the chairmen who have led this committee for the past two centuries,” said Conaway.
“I represent, and love, rural America. It’s the backbone of our country. The values and concepts that make America great are stored in rural America, and I want to protect that. There are fewer and fewer voices representing rural America, and I am honored to be one of those voices. That is my overarching drive as the committee moves forward.”
Rep. Collin Peterson, D-Minnesota, will retain his role as the committee’s ranking member.
“I congratulate Congressman Conaway on his election to chairman of the House Agriculture Committee. … I think we can find common ground as the committee oversees farm bill implementation and reauthorizing the [Commodity Futures Trading Commission] during the next Congress. The agriculture committee has a strong bipartisan tradition, which I look forward to continuing under Chairman Conaway,” stated Peterson.
“I would also like to commend Chairman Lucas for his leadership. While he will no longer be chairman, I have no doubt he will remain a strong advocate for America’s farmers and ranchers and a respected member of the agriculture committee.”

U.S. agriculture cooperatives set new sales record in 2013

Agriculture Secretary Tom Vilsack has announced that the nation's farmer, rancher and fishery cooperatives set a new sales record in 2013, with total business volume of more than $246 billion. That surpasses the previous record, set in 2012, by $8 billion, a 4 percent gain. U.S. co-ops also enjoyed robust job growth over the previous year.
This third consecutive year of record sales by ag cooperatives reflects increased sales in the overall farm economy in 2013. U.S. crop production and livestock sales increased 6 percent in 2013, while production input (farm supply) sales increased 2 percent.
"These sales and net income records for ag cooperatives, combined with strong gains in employees for 2013, underscore the strength and productivity of the nation's farmer- and rancher-owned cooperatives. These co-ops play a vital and growing role in the nation's economy," Vilsack said.
Vilsack made the announcement to mark the start of National Cooperative Month in October. He also signed a Cooperative Month proclamation that salutes the nation's entire cooperative business sector, which includes about 30,000 co-ops. In addition to agriculture, the nation's co-ops play a major role in electricity and telecommunications services, credit and financial services, housing and in many other sectors of the economy.
Ag co-ops also enjoyed record net income (before taxes) of $6.2 billion, besting the previous high of $6.1 billion, set in 2012. Co-op income is either reinvested in the co-op for needed improvements or returned to the member-owners. It then circulates in local communities.
The number of full-time employees working for ag co-ops climbed by almost 7,000 in 2013, to 136,000, up 5 percent from 2012. Counting seasonal employees, ag co-ops employ 191,000 people.
In addition to marketing and processing their members' crops and livestock, co-ops are also major players in the farm supply market. Co-op sales of petroleum, feed, seed and crop protectants were all up in 2013. Fertilizer sales declined, the only major farm supply to see sales drop in 2013.
With grain and oilseed prices generally lower in 2014, it appears unlikely that co-ops will set a fourth consecutive sales record when the results are tallied next year. However, livestock, poultry and dairy producers and their co-ops will benefit from lower feed costs, which should offset at least some of the decline in revenue from grain and oilseed sales.
While 33 ag cooperatives recorded more than $1 billion in sales in 2013, 33 percent (726 co-ops) had less than $5 million in sales.
The value of cooperative assets fell in 2013 by almost $1 billion, with liabilities decreasing by $5.3 billion and owner equity gaining $4.5 billion. Equity capital still remains low but is clearly showing an upward trend, with a 15 percent increase over the previous year.
Patronage income (refunds from other cooperatives due to sales between cooperatives) increased by almost 33 percent, to $1.2 billion, up from $900 million in 2012.
U.S. farm numbers remained about the same in 2013 as in 2012, with USDA counting 2.1 million in both years. There are now 2,186 farmer, rancher and fishery cooperatives, down from 2,236 in 2012. Mergers account for most of the drop, resulting in larger cooperatives.
Producers held 2 million memberships in cooperatives in 2013, down about 7 percent from 2012. The number of cooperative memberships is slightly less than the number of U.S. farms, but this does not mean that every producer is a member of an agricultural cooperative. Previous studies have found that many farmers and ranchers are members of up to three cooperatives, so farm numbers and cooperative memberships are not strictly comparable.

Foundation for Food and Agriculture Research to be established

The Foundation for Food and Agriculture Research -- which will foster research, innovation and partnerships important to the U.S. agriculture economy -- is in the process of being formed. The formation of the new foundation is called for in the Agricultural Act of 2014, which was signed into law by President Barack Obama on February 7.
U.S. Secretary of Agriculture Tom Vilsack will serve as an ex-officio director of the foundation. However, the foundation will operate independently from the U.S. government.
In a statement released on April 25, Vilsack announced he will appoint 15 members to the foundation’s board of directors and is soliciting nominations for members of that board. A notice seeking nominations will be published in the Federal Register.
According to Vilsack, the foundation will receive $200 million from the Commodity Credit Corporation to carry out its mission. The foundation will use this funding to support agricultural research activities when matched with an equal amount of non-federal funds. The foundation will address problems of national and international significance in plant and animal health, production, and products; food safety, nutrition, and health; renewable energy, natural resources, and the environment; agricultural and food security; agriculture systems and technology; and, agricultural economics and rural communities.
The foundation’s board of directors will establish policies and governance structures for the group. This will include hiring an executive director and evaluating the director's performance. Board members will be appointed to five-year terms; however, initial members will be appointed to shorter terms to provide a staggered rotation. Eight of the initial board members will be appointed for three-year terms and seven will be appointed for 2-year terms. Eight are to be nominated from a list provided by the National Academy of Sciences and seven will come from candidates nominated by the industry. Board members will not be compensated for their service, but they may be reimbursed for travel and subsistence. Board members are expected to have experience in agricultural research and represent divers sectors of agriculture.