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King again seeks ban on state regulations on farming practices in other states

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Congressman Steve King. (file photo)

Republicans on the U.S. House Ag Committee have approved their preferred version of the next Farm Bill. It includes a proposal from Iowa Congressman Steve King that attempts to stop state-level regulations on food grown or raised in another state.

“For example, California’s cage-size regulations (mean) we have inspectors from California that are now traveling around Iowa with their tape measurers and measuring the cage sizes of our laying hens in Iowa,” King said during House Ag Committee deliberations. “We have states that have prohibited gestation crates…They prohibit the importation of, into their state, of meat that is produced in a fashion that they disapprove.”

King said states have every right to impose regulations on how farmers within their borders may farm, but he said having officials in one state dictate farming regulations in another state is wrong.

“That goes on with stalls for veal calves and the prohibition to feeding ducks and geese for foie gras liver,” King said. “And it’s getting worse.”

King indicated the Farm Bill could help clarify that congress has the sole authority to regulate inter-state commerce, including agricultural commodities and food products.

“Pre-empt some really bad things that are coming down the pike,” King told his colleagues on the House Ag Committee. “…It’ll be worse if we don’t do this now.”

King, in a news release, said without action, Iowa’s farmers will be “held hostage to the demands of California’s vegan lobby” and regulations adopted by California’s state government. King authored a similar proposal for the last Farm Bill, but it was not included in the final version.

Critics of King’s proposal say it will “preempt states’ ability to enact laws that protect public health, the environment, and consumers.” Others argue laws in Arizona, California and Minnesota that prohibit the false advertising of foods as kosher could be jeopardized.

Farmers in waiting mode until weather lets them start planting

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Joel DeJong

Many Iowa farmers are anxious to start their spring field work, but Mother Nature has other ideas, with recent snowfalls and continued cold weather.

Iowa State University Extension crops specialist Joel DeJong says due to the frigid soil temperatures, farmers are limited on what they can do. “I’ve heard of a little manure being hauled, but past that, very little other activity out in the fields,” DeJong says. “I’m not sure it’s really been fit for the activities to go on. We know it’s going to take a little while for that soil to warm up. It’s going to take a few days of average to above-average temperatures to get us there.”

DeJong says soil temperatures need to be at least 50 degrees — and climbing — for suitable growing conditions for corn and soybeans, and we’re nowhere near that. “Soil temperatures are still in the low 30s, just over 32 degrees, and actually looking at temperatures all the way at our sites that measure to 50 inches, it’s only about 35 to 36 degrees at 50 inches,” DeJong says. “That’s a big chunk of slab of soil that we’re going to have to warm up before it’s really fit for the crop growth.”

If we would start having outside air temperatures in the 60s for a period of about a week, we may begin to see the soil temperatures rise enough to germinate corn seeds. However, DeJong says farmers may be lacking in patience. “We’re probably not going to see people wait that long, because more than likely, if we had that scenerio, we’re going to be drier, so, we’re going to see a lot of those other activities start,” he says. “There’s a few producers that probably will, if it’s early next week, that’s typically the week that most people really want to get going and going hard. So, if the soil conditions are fit, they’re going to go out there and plant and they’re are just going to trust that it’s going to warm up.”

He notes, the good news farmers can take away about this year’s field conditions is that we do have either adequate — or surplus — levels of moisture.

(By Dennis Morrice, KLEM, Le Mars)

 

Vilsack says Perdue has ‘stop gap’ authority to ease trade dispute impact

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Tom Vilsack (file photo)

Former Iowa Governor Tom Vilsack says the current U.S. Ag Secretary has authority to provide some short term financial support to farmers that Vilsack did not have during his eight years as the nation’s secretary of agriculture.

If the trade dispute with China escalates, Vilsack says Ag Secretary Sonny Perdue has “unfettered access” to Commodity Credit Corporation resources “which can be used in a very thoughtful and strategic way to provide some direct assistance for a period of time.

“The reality is it’s a stop-gap measure. It’s not something you can necessarily do that is permanent and, frankly, most of the farmers I talk to would prefer not to have a support structure and system. They would prefer to have a free and open market opportunity.”

Vilsack is president and CEO of the U.S. Dairy Export Council and he’s been to China twice this year. Vilsack says the Chinese are “not fearful” about a trade war, although they hope to avoid it. And Vilsack says officials in other world capitals believe a trade war would put a damper on the world economy, which appears to be perking up a little bit.

“No question China has not played by the rules,” Vilsack says “The question is how we go about making sure that they change and I think one of the things the administration is now trying to do, that I think is a good thing, is that they’re trying to get allies in this effort.”

There are plenty of companies and farmers in other countries that have been damaged by China’s conduct, according to Vilsack.

“There’s no question that China has basically gamed the system, certainly as it relates to intellectual property,” Vilsack says. “But there are ways in which we could solicit the help of the E.U., Japan and others to put pressure on China to basically change their ways without damaging agriculture.”

Vilsack made his comments this weekend during an appearance on Iowa Public Television’s “Market to Market” program.

The 30-minute trade war debate in the Iowa Senate

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Rita Hart

Members of the state senate had a debate about trade and President Trump yesterday afternoon that turned tense and even rowdy at times. Senator Rita Hart, a Democrat from Wheaton who’s a farmer, started things off.

“A trade war, even a short one, could mean long-term losses,” Hart said. “That’s because will quickly replace Iowa’s agricultural products.”

Hart wrote a letter to President Trump on the topic and invited her senate colleagues to sign it. Republicans were having none of it. Senator Brad Zaun of Urbandale is the only elected official to endorse Trump before the Iowa Caucuses.

“I will not have anything to do with that letter that you have, Senator Hart, but I’m thinking about maybe writing my own letter, telling him to, “Keep up the good work,'” Zaun said. “‘Thank you for being honest and following through with your promises.'”

Republican Senator Tim Kaputcian, a farmer from Keystone, said Iowa farmers need to “hang tough” with President Trump.

“Somebody that’s actually stood up against somebody that’s been taking advantage of us for far too long, somebody that’s been stealing our technology, somebody that’s been putting trade import tariffs on us,” Kaputcian said. “…We don’t need to weaken his position.”

Senator Rob Hogg, a Democrat from Cedar Rapids, responded.

“You know you can be tough on trade without being eratic and instituting trade wars,” Hogg said.

David Johnson of Ocheyedan — the independent senator who left the Republican Party in 2016 to protest Trump — started talking about the trade issue, then snapped at Republican Senator Jason Schultz.

“Go on laughing, Senator Schultz. Keep ripping apart the state and its union,” Johnson said.

Senator Mark Chelgren interrupted: “Senator Johnson’s being an idiot. I’d ask him to stop, please.”

Chelgren had to be prompted twice by a colleague, but he apologized for the remark.

Senator Schultz said the letter to Trump was “inappropriate.”

“I am excited that somebody is standing up and saying that: ‘We’re done taking it,'” Schultz said. “Now, anytime you get in a fight…you’re going to take some punches, you’re going to take some bruises, but I believe it’s a fight that at least needs to be discussed.”

Senator Dennis Guth, a Republican farmer from Klemme, said his broker told him the trade dispute will “be a really good thing for Iowa” because China will buy more ag commodities to resolve it.

“We can see, yeah, last week when we had the announcement made, we had quite a dip in prices, however, we’re at brand new highs this week, so just wanted to make that point,” Guth said.

Senator Liz Mathis, a Democrat from Cedar Rapids, chimed in, arguing there was nothing “offensive” in the letter to Trump about trade.

“Lots of ‘man-splaining’ going on out here,” Mathis said. “…Listen! It tells the president how essential we are for trade in the United States. It doesn’t talk about Stormy Daniels, for crying out loud.”

During half-an-hour of venting, about ten state senators had their say, then the senate adjourned for the day.

Reynolds heading to DC ‘to discuss trade’ with President Trump

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Governor Kim Reynolds.

Kim Reynolds will be among a group of governors and congressional leaders meeting with President Trump later this  morning “to discuss trade,” according to a news release from the governor’s office.

On Tuesday, Reynolds assembled a group of Iowa agricultural leaders in her office to send a public message about the impact of a trade war with China.

“Iowa has benefitted from our long-standing relationship with China by establishing new and expanded opportunities for not only our ag commodities (and) feed ingredients, but our agricultural equipment as well,” Reynolds said.

The mere “potential” of Chinese tariffs are creating real concern for Iowa farmers, according to Reynolds.

“No one wins in a trade war,” Reynolds said, “and while some disruption may be necessary and part of the negotiation process, we know that this absolutely can’t be done on the backs of Iowa farmers.”

Earlier this week, Reynolds told reporters she’s been assured by US Ag Secretary Sonny Perdue that some sort of federal financial aid will help mitigate losses to farmers. Today marks the second time Reynolds has traveled to the nation’s capital to speak with Trump about the importance of trade to Iowa’s economy, although the previous White House meeting was focused on convincing Trump not to scrap the North American Free Trade Agreement.

 

 

Iowan inside Trump Administration urges calm amid trade spat with China (AUDIO)

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Sam Clovis

An Iowan who’s serving in the Trump Administration after working on Trump’s 2016 campaign today said Iowans should trust Donald Trump’s negotiating skills. Sam Clovis, a former Morningside College economics profession, is urging farmers to “be calm” amid the angst over falling commodity prices and tariff threats.

“It’s hard. I know it’s hard, but I think they also need to be patient because he’s not going to sell the country down the river,” Clovis says. “He’s not.”

Clovis, a Republican candidate for the US Senate in 2014, joined the Trump campaign in August of 2015 and is now working in the USDA. Clovis suggested some headway already has been made in the trade dispute with China.

“We’ll pull out of this in good shape,” Clovis said. “Now there’s going to be some give and take. There always is, but we’re going to get a good deal because I have confidence in the guy making the deal. I do.”

Clovis spoke to the Westside Conservative Club early this morning.

AUDIO of Clovis’ remarks

“I am so tired of being dragged through a knothole by The Washington Post and The New York Times. In fact, I really feel slighted if I go a week without my name being mentioned prominently in something. In fact, I’m surprised you didn’t play the Russian national anthem when I came up here,” Clovis said and the audience laughed.

Clovis did not use the term “witch hunt” in reference to the investigation into Russian meddling in the last election, but he did offer a strong defense of the president. Clovis, who testified before the grand jury, told Iowans this (Wednesday) morning he “was right in the middle” of recruiting many of the Trump campaign officials who’ve been the focus of attention.

“The surprising aspect of all this is — and I have to be careful what I say — is that when there’s nothing there folks, there’s nothing there,” Clovis said. “…It is stunning how incredibly convoluted that whole narrative has become and how totally inaccurate it has been presented in the press.”

Clovis said he’s not “bitter or resentful” about opposition to his nomination to be an undersecretary in the USDA. Clovis withdrew his name from consideration for the post last fall.

Clovis is spending much of a two-week vacation with his wife at their northwest home in Hinton, Iowa. Clovis joked with the central Iowa crowd this (Wednesday) morning that he’s lived out of a suitcase for four-and-a-half of the last five years.

Clovis answered questions from the audience about the “deep state” and the “bare knuckle fist fight” over the ethanol production mandate.

Reynolds says federal help for farmers hit by trade dispute forthcoming (AUDIO)

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Governor Kim Reynolds with ag leaders.

Governor Kim Reynolds today said she’s been assured by the U.S. Secretary of Agriculture that the Trump Administration soon will announce a plan to “mitigate” farm losses connected to the trade dispute with China.

“I would think it’s forthcoming. I don’t know whether it’s tomorrow or the next day,” Reynolds told reporters during a midday news conference in her statehouse office. “I can just tell you they’re working on it and that the secretary’s assurance to me is that it can be done through U.S.D.A.”

Reynolds talked by phone with Ag Secretary Sonny Perdue and the president’s budget director earlier this morning.

“They both assured me that the U.S.D.A. has the authority to mitigate some of the market disruptions for our farmers,” Reynolds said, “and they wanted me to pass on that they appreciate that the farmers understand that something needs to be done to hold China accountable.”

Craig Hill of Iowa Farm Bureau and Governor Kim Reynolds listen to Greg Hora of Iowa Pork Producers Association

As for what form that assistance might take, Reynolds told reporters administration officials are “working through the details” and weren’t “at liberty” to discuss whether it might be rival of a price support system or some other means of financial support for farmers.

“They’re working on an option for Iowa farmers,” Reynolds said. “They don’t want them to be a casualty in this trade dispute.”

AUDIO of news conference, 30:00

Reynolds had an array of leaders from Iowa commodity groups join her for her weekly news conference. Iowa Soybean Association president Bill Shipley of Nodaway said farmers recognize there are “some legitimate issues” about Chinese theft of intellectual property and they hope the dispute can be resolved without targeting food.

“China’s proposal to add tariffs to soybeans adds to uncertainty US farmers face right now as we head into this planting season,” Shipley said. “…If allowed to take hold, it could jeopardize the ability of US farmers to do business in China for generations. Trade wars involving food are lose-lose.”

Iowa Pork Producers Association president Greg Hora of Fort Dodge told reporters “it’s too early to speculate” about the long-term impact trade negotiations between China and the U.S.

Sukup Manufacturing CFO Steve Sukup.

“Iowa pig farmers look forward to helping tackle the challenges or changes that we can impact in these difficult times and decisions,” Hora said, “with outcomes that we, hopefully, will all be proud of.”

Steve Sukup of Sukup Manufacturing in Sheffield said his company uses a million pounds of U.S.-made steel per week — and the price of that steel has gone up 40 percent. The prices for the company’s grain bins and other products have gone up about 20 percent. According to Sukup, about 83 percent of the steel used by U.S. manufacturers is made in the U.S.

“It was only like 17 percent of imported competition out there, so we didn’t really need to see steel be the ‘tip of the spear’ (in a trade war),” Sukup said.

Sukup, a former state legislator and Republican candidate for governor in 2002, told reporters there “hasn’t been a trade war the U.S. has won.”

Farm leader ‘taken aback’ by ‘cavalier’ Trump Administration comments on trade

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Iowa Farm Bureau president Craig Hill and former Iowa Pork Producers and NPPC president John Weber.

Two Iowa ag leaders say the impact of already-imposed tariffs and the threat of new ones will be felt in the agricultural sector for years, perhaps decades to come.

“We’re in limbo. This is a very bad time for agriculture,” Iowa Farm Bureau President Craig Hill said today during taping of Iowa Public Television’s “Iowa Press” program.

Hill said “any potential for profit in 2018” was wiped out this week and it’s a “very scary” time for farmers — despite assurances from Trump Administration officials that this is just a negotiating phase.

“The cavalier comments that came from Wilbur Ross, the secretary of commerce when he said, ‘Even shooting wars end in neotiation.’…Shooting wars end in casualties and collateral damage,” Hill said. “Whether there’s a victory or defeat or settlement, we are in a trade war and trade wars don’t end well. They’re unpredictable.”

History shows a trade war led into World War II and the Great Depression, according to Hill.

“This is not a very good place to be,” Hill said. “…I’m a little bit taken aback by this attitude that’s come from the White House. It’s a very serious matter and Iowa is going to be the first casualty.”

John Weber, a former president of both the Iowa Pork Producers and the National Pork Producers Council, said China’s pork tariff is already on and the “day of reckoning” is here.

“These types of negotiations are long-term,” said Weber, who is also a guest on the IPTV program. “They’re not something that happens in a week or a day or a short period of time. It will take a long time to recover from the tariffs that are already implemented or already talked about and we are entirely dependent on trade in the state of Iowa and, as pork producers, in particular.”

A quarter of the pork raised in the Iowa is exported.

“The growth of our industry is entirely dependent on future export markets,” Weber said.

Weber indicated young farmers are most vulnerable, financially, because they’ve borrowed money to get started in the business. Steel prices have already increased costs for farmers buying grain bins or putting up hog confinements.

“It seems to have been the practice of this administration to call people out on the table up front and then negotiate later,” Weber said. “Maybe that tactic will work, but, believe me, it’s a very uncomfortable time for those of us that are involved.”

President Trump has directed Ag Secretary Sonny Perdue to come up with way to shield farmers from the financial drag of these trade disputes, but Hill said that’s unlikely.

“The Farm Bill’s yet to be drafted…Congress doesn’t have the money to fix this,” Hill said. “…I don’t know how you make farmers feel better with a promise of some reward from government and it will be years before that happens.”

Both Weber and Hill say President Trump is still popular in farm country, partly due to regulatory decisions from the Trump Administration. The Iowa Farm Bureau’s president, though, warns “some minds may be changed” if this “cascade” of trade sanctions “gets completely out of control.”

“Iowa Press” airs tonight at 7:30 on Iowa Public Television.

Concern continues about the impact of Chinese tariffs on Iowa products

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China’s tariffs on U.S. goods took effect Monday and include pork imports, which could create significant financial trouble for Iowa producers. National Pork Producers Council spokesman Jim Monroe says last year China imported more than $1 billion worth of American pork.

“China is a very important market for us,” Monroe says. “It’s the number-one pork-consuming nation in the world and our industry’s growth is coming from exports.” China’s tariffs are in response to the Trump administration imposing higher taxes on steel and aluminum. Iowa State University economist Wendong Zhang says pork had been slated for a possible second round of tariffs, but in the end, China did just one wave of 128 products — including pork.

“I think what the Chinese government wants to do is send a clear message that they are willing to fight,” Zhang says, “and they’re willing to target agricultural products.” Zhang says the U.S. ag sector doesn’t have the political clout in China that it has here to push for exceptions or reductions to the tariffs. China is also upping its taxes on a long list of products, including wine, nuts and fruit, to as much as 25 percent.

Financial analyst Russell Barton with UrnerBarry says the new pork tariffs announced by China add up quickly. He says existing import duties and value-added tax were 25% and the new duty added to that equals 50%. “That’s significant. That probably prohibits quite a bit of trade,” he says. But Barton says U.S. pork producers might not see much of a difference in sales to China, with or without the new tariffs.

He says China is not necessarily relying on U.S. pork because their domestic supplies have grown and imports were likely to drop a bit regardless of the tarriffs. Barton says China relies on a lot of pork, but China accounted for only about seven percent of U.S. pork exports, totaling about one-point-five percent of the U.S. pork supply.

And, he says the European Union sells China more than double what U.S. does. Barton says the U.S. has seen slow expansion in other developing markets, and he’s encouraged by the recent trade agreement with South Korea. Barton says Mexico and Japan continue to be solid markets for U-S pork.

(Amy Mayer, Iowa Public Radio and the Brownfield Network both contributed to this story)

 

Governor Reynolds disagrees with Trump’s tariffs

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Governor Kim Reynolds.

Markets are reacting to the 25% tariff China imposed on U.S. pork today. Hog prices are down. Stock prices for Tyson Foods, the world’s second largest meat company, are taking a hit.

Republican Governor Kim Reynolds today said she’s an advocate for “free and fair trade” — but the tariffs President Trump imposed on Chinese steel and aluminum are having a negative impact on the Midwest.

“When I disagree with the president, I’m not afraid to step up,” Reynolds said.

Reynolds said she’ll use any opportunity she can to encourage Trump and his governing team to resolve the impasse without elevating the dispute even further.

“There are issues with China, especially when it comes to intellectual property and tech transfer. We’ve let that escalate to the place that it shouldn’t. That also has an impact on our economy and on manufacturing, so we need to figure out a way to hold them accountable, but we need to make sure we don’t have unintended consequences by getting into a trade war,” Reynolds said. “Nobody wins in a trade war.”

China is a top destination for Iowa soybeans, but the Chinese did not include soybeans in the 128 products included in its tariff list.