from National Farmers Union:

In retaliation against the United States’ most recent escalation in an ongoing trade war, China today announced that it will increase tariffs on $75 billion worth of American goods, including a number of agricultural products. Starting on September 1, the country plans raise tariffs on American soybeans from 25 percent to 30 percent and on pork from 50 percent to 60 percent. On December 1, they will increase tariffs on corn, sorghum and wheat from 25 percent to 35 percent. National Farmers Union (NFU) President Roger Johnson issued the following statement in response to the news:

“It’s no surprise that China is slapping even more tariffs on American products. Every time Trump escalates his trade war, China calls his bluff – and why would we expect any differently this time around? And it’s no surprise that farmers are again the target. In just the past three years, U.S. soybean exports to China have fallen nearly 80 percent, and once these tariffs kick in, things are likely to get worse. Things have been difficult for farmers long before this trade war rolled around. Farmers are making half of what they were in 2013, and they’ve taken on record levels of debt just to keep their doors open. Chronic overproduction continues to push commodity prices down, and extreme weather events and higher temperatures caused by climate change have made the job of growing food that much more challenging. But instead of looking to solve existing problems in our agricultural sector, this administration has just created new ones. Between burning bridges with all of our biggest trading partners and undermining our domestic biofuels industry, President Trump is making things worse, not better.”

According to a recent Reuters report,  the U.S. Environmental Protection Agency (EPA) approved 31 of its 38 pending small refinery exemptions (SREs) for 2018. Recipients of the exemptions are not required to comply with renewable volume obligations under the Renewable Fuel Standard (RFS).

The RFS exists to drive investment in American-grown biofuels. However, EPA has consistently misappropriated RFS waivers, cutting demand for biofuels by 2.6 billion gallons and undermining the intent of the law. NFU President Roger Johnson issued the following statement in response to the report:

“This has been a particularly painful week for American family farmers and ranchers. It started on Monday with China – historically our biggest trading partner – halting all imports of American farm products, and it ended today with EPA acting like a wholly owned subsidiary of big oil.

“But these aren’t isolated events – it has been month after month of bad news. After more than a year of constant trade escalation, President Trump seems determined to destroy the United States’ reputation as a reliable supplier of quality agricultural products. At the same time, his EPA seems bent on destroying our domestic market for renewable fuels. Together, these actions are crippling our markets, creating enormous stress in the countryside, and forcing more and more farmers into bankruptcy.

“Our farmers are growing weary of the news from this White House. They’re tired of the empty promises, they’re tired of the excuses, and they’re tired of their needs being put last.”

from National Farmers Union

The U.S. Senate has passed the Family Farmer Relief Act of 2019, a bill that will expand family farmers’ access to relief under Chapter 12 farm bankruptcy rules by increasing the debt limit from $4.2 million to $10 million. The bill, which was approved by the House of Representatives last week, now awaits President Donald Trump’s signature.

National Farmers Union (NFU) endorsed the legislation when it was first introduced in April, as it would help more family farmers avoid liquidation or foreclosure. NFU President Roger Johnson released the following statement in response to its passage:

“Chronic overproduction, an ongoing international trade war, and a series of extreme weather events have created a perfect storm for the farm economy. Farm debt is at a record high, and too many operations have been pushed to the brink financially. The Family Farmer Relief Act will help more family farmers access Chapter 12 relief, giving them a fighting chance to stay in business. We applaud Congress for passing this important legislation, and we urge President Trump to swiftly enact it into law.”

Two months after announcing its intentions to provide a new package to assist family farmers and ranchers coping with trade damages, the USDA has released finalized details about the timing and calculation of direct payments to producers through the Market Facilitation Program (MFP). 

The agency has earmarked up to $14.5 billion for the program to be distributed in three separate tranches. Eligible producers can submit applications for the first tranche beginning next Monday, July 29, through December 6, 2019, and payments will be sent out starting in mid- to late August. Most commodity grain producers will be compensated based on a single county rate ranging from $15 to $150 per planted acre.

For the first round of payments, they will receive a minimum of $15 per acre and up to 50% of the county rate. In contrast, dairy producers will receive 20 cents per hundredweight based on historical production.

Additional relief for hog and specialty crop producers will be available as well. Given the significant difficulties that ongoing trade uncertainty has caused, National Farmers Union is relieved that farmers will be receiving much-needed assistance. NFU President Roger Johnson released the following statement in response to USDA’s announcement:

[Read more…]

Thirty-five farm and food organizations called on elected officials and candidates running for office to address the disproportionate market power held by the giant agribusinesses that dominate livestock and poultry markets. The list of priorities for creating fair and competitive markets for family farmers is endorsed by groups from across the country that represent producers raising livestock and poultry. 

“Our food system is clearly rigged. While just a handful of multi-national corporations have been allowed to exert more and more control over every step of the agricultural supply chain, farmers and ranchers have been left to cope with higher production costs and fewer marketing choices as well as unfair and abusive business practices. These factors have contributed to the increasingly slim profit margins that have forced too many farms to close their doors. Between 2012 and 2017, nearly 70,000 farms went out of business, most of which were mid-sized, family-owned operations,” said National Farmers Union (NFU) President, Roger Johnson. “In light of these circumstances, it is critical that we act now to restore fair competition to agriculture. As the field of 2020 candidates vie for the presidency, we urge them to take the issue of corporate consolidation and anti-trust enforcement seriously by incorporating these recommendations into their platforms.”

The policy changes urged by the groups are needed because the largest meatpackers and processors control all stages of food animal production, forcing farmers into one-sided contracts that eliminate market transparency, depress prices, undermine the livelihoods of independent farmers and ranchers, and threaten farmers’ ability to adopt sustainable production practices.

“Our farm advocates have taken in hundreds of hotline calls from livestock and poultry producers in recent years struggling to make ends meet,” said Sally Lee, Associate Director of RAFI-USA. “These are hardworking farmers who are experts at what they do, but the marketplace has been rigged against them. Farmers deserve dignity and respect for their work, and we cannot let their basic rights be written off in the fine print of an unfair contract.” 

The groups are calling on elected officials and candidates to support measures to rebalance the economic relationships between farmers, ranchers, consumers, workers, and food companies, including policies to:

• Enforce and strengthen antitrust and fair practice laws, including enforcement of the Packers & Stockyards Act. 
• Ensure access to fair farm credit, including holding lenders accountable for equitable lending practices.
• Restore mandatory country-of-origin labeling for beef and pork.
• Stop subsidizing overproduction, including restricting government loan guarantees to large-scale contract operations.
• Break up food and agriculture monopolies, including instituting a moratorium on new mergers in the food and agriculture system. 
• Stop subsidizing foreign corporations, by prohibiting federal procurement programs from buying meat from animals born, raised or slaughtered outside the U.S.
• Level the playing field for independent processors, including addressingthe bias in food safety regulations toward large corporate slaughter and processing facilities. 

[Read more…]

As Congressional leadership and the Trump administration work towards a compromise on the U.S.-Mexico-Canada Agreement (USMCA), the country’s oldest general farm organization is urging additional improvements to the deal that could help to reduce health care costs and protect rural jobs before it is sent to Congress for approval.

In a letter sent to Speaker of the U.S. House of Representatives Nancy Pelosi and House Minority Leader Kevin McCarthy, National Farmers Union (NFU) President Roger Johnson emphasized the value of trade agreements to agricultural communities. “Access to export markets is critical for U.S. family farms,” the letter reads. “Canada and Mexico are the leading export markets for U.S. agricultural products, and USMCA would maintain those important relationships.”

Though international export markets have provided economic opportunities for family farmers and ranchers, the free trade framework that has dominated U.S. trade deals for the past 25 years has not been without its shortcomings. “Farmers are increasingly dependent on off-farm employment to make ends meet,” said Johnson, “but many rural manufacturing and other jobs are moving to foreign markets with cheaper labor and lower environmental standards.” He recommended that Congressional leadership include proposals that would address those issues. “Labor, environment, and enforcement standards must be strengthened to help to keep jobs in rural communities.”

Johnson also expressed concern about the implications of USMCA for rural health care. “The increasing cost of health care, a top concern among NFU members, is eating into already shrinking farm revenue,” writes Johnson, adding that the deal may exacerbate the problem. As written, USMCA would grant pharmaceutical companies marketing exclusivity for biologic drugs for a minimum of 10 years. If approved, this rule would prevent Congress from acting to hasten the entrance of lower-cost generic drugs to the market.

Farming is a notoriously precarious profession – in 2014, there was an estimated 58,000 adult farm injuries. Yet nearly half of farmers are not confident they could cover the costs of treatment for a major illness or injury without going into debt. All Americans should have access to effective health care, but given the added risks of agricultural professions, it is particularly critical that legislators work to improve coverage and affordability in rural areas. USMCA’s prescription drug provision would “limit the actions Congress can take to reduce prescription drug prices,” noted Johnson, and as such, it “must be rectified to allow for future reductions in health care costs.”