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Angus Journal

The Angus Journal Daily, formerly the Angus e-List, is a compilation of Angus industry news; information about hot topics in the beef industry; and updates about upcoming shows, sales and events. Click here to subscribe.

News Update

March 23, 2018

In the Cattle Markets

Wherever you get your news, you likely couldn’t avoid hearing a particular T word lately: tariffs. On the heels of the announcement that the United States will impose a 25% tariff on steel imports and a 10% tariff on aluminum imports, many prognosticators were taking sides on the impact the tariffs would have on businesses and consumers.

Don’t worry, this article is not about metals, and I’m no forecaster of those industries. However, tariffs are something that those in the beef industry have been talking about for a long time.

Also released recently were the latest monthly U.S. beef trade data that show continued impressive growth of U.S. beef exports. So, while we have a tariff example fresh in the news and a report of strong beef exports, perhaps it’s a good time to touch on some of the tariffs facing U.S. beef entering other countries.

Beef exports were up 9% on a tonnage basis and 21% in value year-over-year during January 2018, according to a recent report by U.S. Meat Export Federation (USMEF) and data from USDA.

Continue reading this Angus Beef Bulletin EXTRA article online.

Farm Bureau Concerned About
Possible Chinese Trade Retaliation

American Farm Bureau Federation President Zippy Duvall said regarding possible trade retaliation by China against U.S. farm exports:

“If the trade situation continues to deteriorate, our lives as farmers and ranchers will become more difficult. America’s farmers and ranchers export more than $21 billion of farm products to China — more than 20% of their production. After Canada, China is our second-largest customer for ag exports. In retaliation for what our government says are justified U.S. trade measures against China on intellectual property issues, Chinese officials now have indicated they are prepared to slap tariffs on U.S. pork, wine and fruit.

“Our farmers and ranchers depend on trade for a living, and we are very concerned about retaliation resulting from the tariffs announced yesterday. China is an important market for U.S. pork. With about a billion dollars’ worth of pork going to China and Hong Kong, it’s our second-biggest market. This will really hurt U.S. pork producers.

“Farm income across commodities has fallen by about 50% over the past four years. Retaliation in the trade arena makes our outlook even worse.”

For more information, read the Farm Bureau news release online.

USMEF on Possible Retaliatory Duties on U.S. Pork

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom said regarding a possible pork tariff:

“The announcement by the Chinese government that it is placing pork on a list of U.S. products that could be subject to increased import duties is cause for great concern in the pork industry. USMEF is seeking further details on this announcement and on the likely timing of any action by the Chinese government.

“China is a key market for U.S. pork and especially for pork variety meat. In 2017, the U.S. industry exported 309,284 metric tons (mt) of pork and pork variety meat to China, valued at $663.1 million — our third-largest international market by volume and fourth-largest by value. For variety meat exports only, China was our largest destination in both volume (181,351 mt) and value ($425.2 million). In fact, China accounted for more than one third of U.S. pork variety meat exports last year.

“Variety meat exports make a very important contribution to hog carcass value, and last year these exports to China alone equated to more than $3.50 per U.S. hog slaughtered. China is a price-sensitive market, so any tariff rate increase would affect the competitive position of U.S. pork.”

Farmers Again Exempt From Reporting Air Emissions

The catchall federal spending legislation approved by the Senate and House and now on its way to President Trump for his signature restores the exemption for farmers from reporting to the U.S. Coast Guard emissions from the natural breakdown of manure on their farms. The National Pork Producers Council (NPPC) applauded inclusion in the so-called omnibus bill of the exemption provision, which had strong bipartisan support in both legislative chambers.

“This is fantastic news for hog farmers,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “NPPC thanks the more than 100 members of both houses of Congress who supported restoring the farm emissions exemption through legislation and by voting in favor of the provision in the omnibus bill.”

Companion bills were introduced earlier this year in the Senate by Deb Fischer (R-Neb.), Joe Donnelly (D-Ind.), and Environment and Public Works Committee Chairman John Barrasso (R-Wyo.), and Ranking Member Tom Carper (D-Del.), and in the House by Reps. Billy Long (R-Mo.), and Jim Costa (D-Calif.). The Senate legislation had 20 original cosponsors — 10 Republicans and 10 Democrats — while the House measure had 85 cosponsors.

Learn more in the full NPPC news release online. Highlights Producers, Latest Information

Last month, U.S. Secretary of Agriculture Sonny Perdue unveiled, the new interactive one-stop website for producers maintained by the USDA. is now live and will have multiple features added over the coming months to allow agricultural producers to make appointments with USDA offices, file forms and apply for USDA programs. The website gathers together the three agencies that comprise USDA’s Farm Production and Conservation (FPAC) mission area: the Farm Service Agency, the Natural Resources Conservation Service and the Risk Management Agency.

This month, the website launched its blog, which features stories from all three agencies including articles on crop insurance. March 23 kicked-off a special blog feature called Fridays on the Farm (#FOTF). Read the blog online.



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