Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Sunday, January 7, 2018

Farm Bureau’s Duvall Praises ‘Fresh Air’ in D.C., Calls for Better Immigration, Trade, Farm Bill

NASHVILLE, Tenn., January 7, 2018 – American Farm Bureau Federation President Zippy Duvall called on farmers and ranchers to redouble their efforts to advocate for agriculture, even as the current administration has begun moving to undo some of the regulations that have burdened them for years. “We have had a seat at the table with the Trump administration,” Duvall told nearly 7,000 farmers and ranchers gathered for the organization’s annual convention in Nashville, Tennessee. “Folks, I can tell you that it has been a breath of fresh air to be able to advocate for getting things done…instead of having to constantly defend agriculture against a steady stream of challenges from our own government.” In his address Duvall covered the gamut of major issues that began to move in recent months. “Probably the biggest challenge we faced in recent years was the Waters of the U.S. rule,” he said. “That over-reaching regulation would have allowed the federal government to dictate not just how you farm — but whether you could farm at all. Thanks to your engagement, and thanks to EPA administrator Scott Pruitt, the old rule is being reconsidered. And we are urging the agency to propose a new rule…one that draws clear lines that protect waters without regulating farm fields. “It’s thanks to your engagement that Congress passed tax reform last year—giving farmers a new 20 percent deduction on their business income, doubling the estate tax exemption, preserving tax credits that farmers depend on, and lowering the individual tax rate,” he said. Duvall underlined the importance of trade to American farmers. “As I have traveled, I have discovered that even some within agriculture don’t understand what’s at stake if we lose our trade agreements. Trade should not be a dirty word. Because without those global markets our already-depressed farm economy would go down even more. We sell about half of what we produce to foreign markets around the world. If we lose those markets, where is that agricultural production going to go? Ag trade is an American success story.” Immigration remains a key issue with American farmers. “We also have some work to do on immigration and ag labor,” he said. “This is yet another issue that has been overtaken by politics. But I have met many farmers and ranchers across the country who deal with the reality of farm labor shortages on their farms. Everywhere I go, no matter which region or state, farmers tell me this is the number one problem they face—not enough ag workers to get their crops out of the field. “Last year, Congressman Bob Goodlatte of Virginia introduced a bill that would let existing workers apply for visas to stay in the U.S. and keep working on our farms and ranches. We need Congress to pass that bill so we can keep from losing ag production to other countries that have better access to labor.” The farm bill, meanwhile, is expected to pass Congress sometime this year. Duvall reminded Farm Bureau members it remains a top priority at a time when farmers and ranchers are facing the worst outlook since the collapse of the farm economy in the 1980s. “The fact is – the farm bill is a food security bill for everyone,” he said. “It’s for consumers. And it’s for conservation. It’s for rural development. It’s for energy security. It’s for research so we can continue to increase production and meet future demand. And, yes, it is and should continue to be for those low-income Americans who need extra help to put food on their table.”

Canadian Minister of Agriculture: Trade and NAFTA are Essential to Prosperity

NASHVILLE, Tenn., January 7, 2018 – Trade relationships are the foundation for creating economic prosperity between nations, the Hon. Lawrence MacAulay, Canada’s Minister of Agriculture and Agri-Food, said at the opening session of the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show in Nashville. MacAulay, who is the first Canadian agriculture minister to speak to Farm Bureau members at an annual convention, said that trade, the North American Free Trade Agreement and building on common interests are the three areas the U.S. and Canada should focus on. “The closer the U.S. and Canada work together to address common challenges, the more we can grow our economies,” he said. “No two nations depend on each other for economic prosperity more than the U.S. and Canada.” Since 1994, trade among NAFTA partners has tripled, and agriculture and food exports from the U.S. to Canada and Mexico have quadrupled. “The American Farm Bureau knows how vital NAFTA is to our industry,” said MacAulay. “We must continue to ensure that North America remains a major building block in our shared economic prosperity. If we grow our trade relationship, we will grow our economies together.” Speaking on NAFTA renegotiation, MacAulay said the main objective is to do no harm to agriculture. “Can NAFTA be updated? Of course. But it’s like an old tractor in the barn. We can make it better, but let’s not destroy the tractor.” In closing MacAulay thanked Farm Bureau members for their commitment to promoting trade. “Your presence here speaks to the optimism of the future,” he said.

State Farm Bureaus Recognized for Excellence

NASHVILLE, Tenn., January 7, 2018 – State Farm Bureaus were presented awards at the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show. The awards recognized excellence in implementation of outstanding member programs and membership achievement in 2017. The Pinnacle Award, the highest honor a state can be awarded for program and membership achievement, was given to Arizona, Florida, Massachusetts, Michigan, Pennsylvania and Tennessee. New Horizon Awards, honoring states with the most innovative new programs, were presented to: Alabama, Arizona, Massachusetts, Ohio, Pennsylvania, Virginia. The Awards of Excellence are awarded to state Farm Bureaus that demonstrate outstanding achievements in four program areas: Advocacy; Engagement and Outreach; Leadership and Business Development; and Membership Value. The Awards of Excellence winners by state and category are: • Alabama (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Arkansas (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Arizona (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • California (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Colorado (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Connecticut (Engagement and Outreach) • Florida (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Georgia (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Idaho (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Illinois (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Indiana (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Iowa (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Kansas (Advocacy; Engagement and Outreach; Leadership and Business Development) • Kentucky (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Louisiana (Advocacy; Engagement and Outreach; Leadership and Business Development) • Maryland (Advocacy; Engagement and Outreach; Leadership and Business Development) • Massachusetts (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Michigan (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Minnesota (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Mississippi (Advocacy; Engagement and Outreach, Membership Value) • Missouri (Advocacy; Engagement and Outreach; Leadership and Business Development) • Montana (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Nebraska (Advocacy; Engagement and Outreach; Membership Value) • Nevada (Advocacy) • New Mexico (Advocacy) • New York (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • North Carolina (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Ohio (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Oklahoma (Advocacy; Membership Value) • Oregon (Advocacy; Engagement and Outreach; Leadership and Business Development) • Pennsylvania (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • South Carolina (Advocacy; Engagement and Outreach; Membership Value) • South Dakota (Education and Outreach) • Tennessee (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Texas (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Utah (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Virginia (Advocacy; Engagement and Outreach; Leadership and Business Development; Membership Value) • Washington (Advocacy; Leadership and Business Development) • Wisconsin (Engagement and Outreach; Leadership and Business Development)

Farm Bureau Distinguished Service and Founders Awards: Sen. James Inhofe and Kenneth Dierschke Honored

NASHVILLE, Tenn., January 7, 2018 – The American Farm Bureau Federation presented its highest honor, the Distinguished Service Award, to Sen. James Inhofe, and the Farm Bureau Founders Award to Kenneth Dierschke during AFBF’s 2018 Annual Convention & IDEAg Trade Show. AFBF established the Distinguished Service Award in 1928 to honor individuals who have devoted their careers to serving the national interest of American agriculture. The Farm Bureau Founders Award was established in January 2017 to recognize exemplary leadership, service or contributions to Farm Bureau by officers or employees of AFBF and state Farm Bureau organizations. Sen. Inhofe is a longtime friend of America’s farm and ranch families and an eight-time recipient of AFBF’s Friend of Farm Bureau award. His commitment to protecting landowners’ property rights, preserving our natural resources, and reining in federal regulatory overreach has brought relief to farmers and ranchers across our nation. From the start of his public service career, Inhofe’s primary goal has been to shrink the federal government, after seeing firsthand how over-regulation was stifling our free enterprise system. “I spent 20 years as a builder and a developer. I was out doing what Americans are supposed to be doing: expanding the tax base, making money, losing money,” Inhofe said. “All those years the chief opposition I had was federal over-regulation.” Inhofe was first elected to Congress in 1986, and has served in the Senate since 1994. As a member and past chair of the Senate Environment and Public Works Committee, Inhofe has been a staunch advocate for farmers and ranchers through his work to stop unreasonable regulations, rebuild the nation’s crumbling infrastructure, protect investments in ag research and innovation, and promote policies that help create jobs and economic prosperity. He led the legislative charge to put a stop to the flawed Waters of the U.S. rule, and has been a leading voice on Capitol Hill for bringing a common-sense, science-based approached to the regulatory process. “He’s a guy you want on your side,” Oklahoma Farm Bureau President Rodd Moesel said of Inhofe. “There is no better bulldog, there is no better warrior fighting for your issues, and we are blessed that most of the time he and Farm Bureau are on the very same side.” Kenneth Dierschke, a fourth-generation West Texas cotton and grain farmer, has served as a Farm Bureau leader for more than 50 years. A former Texas Farm Bureau president and AFBF board member, Dierschke credits his father with first urging him to step up as an advocate for agriculture. “I had a yearning to be a farmer all of my life, so I decided I’d come back to the farm and when I did, my father told me you just can’t come back here and sit around,” Dierschke said. “You need to get involved, and Farm Bureau is the organization you need to get involved in.” Get involved he did. In his 12 years leading the Texas Farm Bureau, Dierschke was instrumental in gaining passage of three major farm bills. “Farm bill was always high on his list,” said current Texas Farm Bureau President Russell Boening. “Being a West Texas farmer, cotton probably over most of his lifetime, he understood the importance of the farm bill, the importance of a good safety net.” Dierschke fought, and won, other tough battles for agriculture like the Trans Texas Corridor—a massive private property takeover which threatened to run over farms and rural communities. He led by example to foster cooperation with other agricultural groups to the benefit of farmers and ranchers across his state and beyond. Dierschke also never missed an opportunity to discuss and promote trade of U.S. -grown and -raised products, and served as a member of the U.S. Trade Representative’s Advisory Council. A lifelong advocate for agriculture, Dierschke continues to pass on the advice his father gave him as a young man: “You are Farm Bureau. You’re the grassroots; that’s what this organization is all about. If you don’t do it, the leaders aren’t going to do it, because they listen to what you tell them, and that’s what drew me to Farm Bureau.” The Oklahoma Farm Bureau nominated Sen. Inhofe to receive the DSA award; the Texas Farm Bureau nominated Dierschke to receive the Founders Award. A national Farm Bureau committee named each as winners.

Leadership Means Saying Yes to Opportunities and Telling Your Story

NASHVILLE, Tenn., January 7, 2018 – “The world truly is led by those who show up,” Missouri Director of Agriculture Chris Chinn told over 750 attendees at the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show in Nashville. Chinn challenged members of the audience to say yes when opportunities arise, otherwise others may tell your story in a less-favorable light, she warned. After serving a term as the national chairman of the AFBF Young Farmers & Ranchers Committee, Chinn went on to serve as a state board member for Missouri Farm Bureau. In December 2016, newly elected Missouri Governor Eric Greitens asked Chinn to lead the state Department of Agriculture. She was initially reluctant to accept the offer, citing family and farm obligations. While weighing the governor-elect’s offer, Chinn reflected on her time serving as the Young Farmers & Ranchers chairman. “I realized that we had better show up and we had better make sure our voice is heard, or we’re going to have a lot of changes on our family farms that we won’t like,” Chinn said. She decided to accept the role in order to further the story of agriculture. Chinn believes that farmers can be their own best advocates. “You do not have to have a title to lead from where you are,” she said. “The activist groups are afraid of us standing up and sharing our story, because the one thing each of us possesses that you can’t buy is a passion for what we do on a daily basis.” Telling the story of agriculture on social media can be extremely powerful. “If people are getting their information off of the internet, that’s where we need to be,” Chinn said. “If we’re all out there using social media to tell our story, we can make an impact,” she said. Chinn also encouraged farmers to remain positive and not engage in mudslinging. “[Changing minds] isn’t about standing up, preaching and telling someone that I am right and they are wrong. It is about listening to their concerns and trying to understand where they are coming from,” she said. Building and preserving relationships is also key. “Make sure that while you’re disagreeing with somebody, that you may decide to disagree on a topic, but don’t hate that person and don’t burn your bridge with those people,” she said.

Disaster Assistance Will Set the Stage for Next Farm Bill

NASHVILLE, Tenn., January 7, 2018 – Passing a disaster assistance bill for agriculture will set the stage for the next farm bill, Sen. Jerry Moran (R-Kan.) told workshop attendees at the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show. Ideally, lawmakers will address contentious issues related to cotton and dairy programs in the disaster bill and “get them out of the way” before the farm bill debate heats up, according to Moran said. He noted that the Senate is likely to take up the House-passed disaster aid bill, amend it and send it back as a package. “We know you’re anxious to see action” on the farm bill but progress is often slow, Moran acknowledged. He also noted that if all of agriculture doesn’t work together, nothing will get done. The House is ahead of the Senate in terms of progress on the farm bill, and overall timing of the legislation is uncertain. Moran did predict the Senate will release its version of the farm bill in the first few months of 2018. As far as what the upcoming farm bill should include, “the current safety net is not adequate and changes are needed,” Moran said, referring specifically to the Agriculture Risk Coverage and Price Loss Coverage programs for crops. Touching on another current farm policy issue, Moran told farmers and ranchers “we need to make sure exports of farm goods are protected and enhanced, not diminished.” He encouraged farmers and ranchers to “make certain the case is made on the importance of ag trade” whenever they have the opportunity.

Stable Forecast for U.S. Crop Prices Forecast

NASHVILLE, Tenn., January 7, 2018 – U.S. grain prices and crop demand for 2017-2018 will likely show no major changes, according to Dr. Keith Coble, former chief economist for Senate Agriculture Committee Republicans and the head of the Agricultural Economics Department at Mississippi State University. Coble spoke to workshop attendees during the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show about global crop trends and the U.S. farm policy outlook for the upcoming year. Trends for 2018 will be similar to 2017, unless a major disruption occurs, such as weather or foreign market changes, Coble said. “We are really not seeing anything that is significantly moving the markets up or down in the short-term,” said Coble. “Markets are going to see mostly sideways movement. Cotton is the most promising of the commodities.” Coble addressed the outlooks on global and U.S. markets for each of the major crop markets separately – corn, soybeans, wheat, cotton and rice – predicting not much change will occur. He also spoke about the future of crop insurance. “The overall percentage of the farm bill taken up by the farm commodity program has diminished, because of the shift away from Title I programs toward crop insurance programs,” he said. The presentation concluded with audience questions about Coble’s opinion of the next farm bill and the North American Free Trade Agreement. Coble said the farm bill will likely receive minor tweaks because of the shortened window that comes with an election year.

USDA Under Secretary Confident Good Neighbor Relations Will Prevail in NAFTA Talks

NASHVILLE, Tenn., January 7, 2018 – Current North American Free Trade Agreement negotiations are a lot like a Sumo wrestling match, according to Ted McKinney, under secretary of trade and foreign agricultural affairs for the Agriculture Department. He said there is an extraordinary amount of posturing in the circle, but he is hopeful that the United States, Canada and Mexico will meet in the middle and find some agreement in the next round of trade negotiations. McKinney spoke to Farm Bureau members at a workshop at the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show. He addressed a host of trade issues around the country, but said NAFTA is the most important project that the United States has right now. “Let’s not blow up NAFTA, but that doesn’t mean that changes shouldn’t be made,” said McKinney. “Good friendships don’t mean that you don’t have hard conversations to right-size agreements that may be 20 years old.” McKinney said dairy is the biggest issue facing the agricultural end of NAFTA negotiations. Last year, Canada moved forward with a new class of milk that virtually shut out American-made ultra filtered milk. He said that issue took farmers over the top. “Dairy is the big deal. Every dairy organization has written, phoned or been in my office. It is the itch that needs to be scratched and the elephant in the room,” he said. McKinney also ran down a list of other potential trade opportunities for American farmers including Japan, China, Britain, Vietnam and India. With each of those come challenges, but he is looking to get free trade agreements that will open up new markets for American products, especially in expanding economies where growing middle classes are wanting to buy more protein like meat and dairy. He said opening new markets also helps to spread the risk if other trade agreements get bumpy. He admitted one of the toughest markets right now is the European Union. He was critical of the EU’s response to biotechnology and its attempt to label glyphosate as a carcinogen when it has been scientifically proven to be one of the safest products used by farmers and consumers alike. “Stop playing politics,” he said. “The shenanigans have got to stop.” To support the trade movement, he encouraged Farm Bureau members to share their stories on things like the need for free trade, the safety of GMOs, and why you need certain products to farm. He says speaking to local community members is just as important as writing a letter to your governor and congressional leaders. “It may help turn this NAFTA thing around a little bit. Without your voice, it is not going to work,” said McKinney. In the end, he summed up how important our neighbors are to the United States and believes if all sides work in good faith, NAFTA will get resolved. “I’m a huge fan of our Canadian friends. I love Canada, but Canada, it is time to step forward,” said McKinney. “I think we can get there because of the importance of the relationship.”

Livestock Outlook Positive for 2018

NASHVILLE, Tenn., Jan. 7, 2018—Last year ended on a good note, and the 2018 outlook for livestock and poultry sectors is positive overall, according to James Robb, director and senior agricultural livestock economist for the Livestock Marketing Information Center. There are, however, concerns for both markets as uncertainty looms around trade agreements, Robb told workshop attendees at the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show. Demand for meat has increased, and Americans are expected to consume about 219 pounds of red meat and poultry per year. That’s the largest since around 2007, according to Robb. As demand increases, quality will be more important than ever before. “Beef sells for well more than other products because consumers are willing to pay a premium,” Robb said. “Consumers don’t care about the cost of production, and they won’t pay the premium for beef if the quality isn’t there.” Robb noted the pork sector is considering establishing grading guidelines similar to beef. “Beef product, compared to pork and chicken, has improved dramatically,” he said. “Pork wants to have grading guidelines like beef to improve their product.” Competition for the customer also factors into prices and marketing. “How do you get people into traditional grocery stores?” Robb asked. “The meat case, dairy products, fresh fruit drive customers to the store.” Pet food is also changing the marketplace with the use of animal-based proteins. “There’s fresh pet food, frozen pet food,” Robb said. “Millennials pay more per pound for pet food than they do for their own food.” Exports have added value for cattle producers—adding an extra $66 per head. But uncertainty centers around deals like the North American Free Trade Agreement and the U.S.-Korea Free Trade Agreement. “We think that number could grow but it’s dependent on things like NAFTA,” Robb said. “A lot went right for cattle prices in 2017, but we’re still marketing calves against larger supplies.” Financial management is critical, Robb said, and will be more important as the markets change. “The marketing plan is tied to the cash flow statement,” he said. “If we do have problems while the calf crop is growing, we have to be quicker to the draw and make fast decisions while the market is adjusting.”

Ag Law Experts Review Top Legal Issues Affecting Farmers

NASHVILLE, Tenn., January 7, 2018 – Court decisions and changes in the law can have significant impacts on farm and ranch businesses, according to two agricultural law experts who presented at a workshop at the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show. Tiffany Dowell Lashmet, assistant professor and Extension specialist in agricultural law with Texas A&M Agrilife Extension, and Paul Goeringer, Extension legal specialist at the University of Maryland, gave an overview of legal issues affecting farmers and ranchers, including the Waters of the U.S. rule, dicamba drift, a tentative settlement in the Syngenta corn class action lawsuits and “ag gag” laws. WOTUS “Congress gave the EPA jurisdiction over ‘Waters of the U.S.,’ but didn’t define Waters of the U.S.,” said Lashmet. This left the definition up to the agency, but rather than interpreting the scope of the regulation, EPA expanded it with the 2015 WOTUS rule. Numerous lawsuits were filed, and the 6th Circuit Court of Appeals stayed the rule in 2015. Farmers could be required to get a permit for a farm pond, with permit costs ranging from $30,000 for a “simple” permit up to $280,000 for a complex one, and with daily fines of $37,500 for non-compliance. In 2016 the Supreme Court heard a challenge, and a ruling is expected sometime in summer 2018. “No group is more familiar with WOTUS than the American Farm Bureau,” said Lashmet. Dicamba Drift Goeringer said new EPA regulations will force new labeling requirements for dicamba use. Only permitted, certified applicators who received dicamba-specific training can apply the product, and operators cannot spray if wind is higher than 10 miles per hour. There are new record-keeping requirements and more specific tank cleanout requirements. Dicamba can only be sprayed during daylight hours, and farmers must do additional checks for sensitive crops before spraying. Other labeling requirements from 2017 will still apply, and new state laws and regulations have been adopted in several states. Tentative Syngenta Settlement In 2013, corn shipments were rejected at a Chinese port due to the presence of Viptera, and lawsuits were filed across the country by shippers and grain handlers, as well as farmers who did not plant the seed. Many suits were consolidated in Kansas, where a jury awarded $217 million to farmers. The court also certified nine initial class-action lawsuits in several states. Unconfirmed reports say a settlement could be $1.5 billion, but any payout will take considerable time to be decided. The message to farmers, said Lashmet, is to “pay attention to your mailbox for a mailing about opting in or out, or a notice of settlement.” “Ag Gag” Laws Farm protection laws, unfairly described as “ag gag” laws by opposition groups, have been passed in Idaho, Montana, Utah, North Dakota, Kansas, Missouri, Iowa and North Carolina. These laws make it a crime to trespass on or video ag operations or to seek employment with intent to video ag operations. The court affirmed some of these provisions and struck down others. Other Legal Issues Goeringer and Lashmet also gave brief updates on federal reserved water rights on insurance protection exclusions for manure, and urged farmers and ranchers to be informed about legal issues that could impact their businesses. “Being involved in Farm Bureau is the best way to stay up to date on the regulations and laws that affect you,” said Lashmet.