Tag: USMCA

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Dairy Industry is “Optimistic” at #NAFB19

Dairy
U.S. Dairy Export President and CEO Tom Vilsack spoke at the #NAFB19 convention in Kansas City, appearing more optimistic about the future of the U.S. dairy industry than in recent years. (Photo by Chad Smith)

Dairy industry officials know firsthand that the industry has struggled in recent years, and there’s no question about it. Former Ag Secretary Tom Vilsack, who spoke to broadcasters during the National Association of Farm Broadcasting’s annual convention in Kansas City. Vilsack, is the current President and CEO of the U.S. Dairy Export Council. He says in spite of some tough years for the American dairy industry, there are reasons for optimism.

News broke this week that Dean Foods, America’s largest milk producing company in the dairy industry, filed for bankruptcy. I had a chance for some one-on-one comments with the former Ag Secretary, who preferred to talk more about the positive signs ahead in the dairy industry than the bad news about Dean Foods.

He took a lot of questions from farm broadcasters on a variety of topics in the dairy industry. One of the biggest topics in recent months is the growing market for plant-based “milks.” He and the rest of the dairy industry aren’t happy with these companies referring to themselves as “milk.” The question came from Orien Samuelson, the dean of farm broadcasters and a good friend of Vilsack.

https://www.youtube.com/watch?v=CbopKYObCAs&feature=youtu.be

He says the US-Mexico-Canada Trade Agreement making its way through the House of Representatives, all be it slowly because of Democratic concerns, is another reason to be optimistic. He’s confident that the agreement will get done.

https://www.youtube.com/watch?v=FCURYBZ6IIo&feature=youtu.be

It’s hard to believe that folks in Washington, D.C. are already talking about the next Farm Bill. The reason for that is House Ag Committee Chair Collin Peterson, a Minnesota Democrat, isn’t sure yet if he’ll be running for re-election in 2020. He’s said publicly that decision will be coming in either January or February. Vilsack said even if Peterson doesn’t run again, the next farm bill will get done.

https://www.youtube.com/watch?v=BHU9-7w_CVU&feature=youtu.be

Lastly, as President of the Dairy Export Council, he pays close attention to the country’s export situation, which hasn’t been great at all thanks to trade disputes. In spite of that, with agreements pending in Japan, as well as in North America, exports are another reason to be optimistic.

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Trade Opportunities vital for Minnesota farm leaders

trade opportunities
The U.S.-Mexico-Canada Trade agreement presents trade opportunities that Ag leaders across the country say farmers need to break out of the economic doldrums across the sector.

Trade opportunities have been, and always will be, important to U.S. agriculture. However, the opportunities aren’t there because of ongoing trade disputes with partners like China. However, with the removal of Section 232 steel and aluminum tariffs on Mexican and Canadian imports, the opportunity for the U.S.-Mexico-Canada Trade Agreement to get through Congress is closer than ever. The prospects, however, depend on who you ask and what their political affiliation is.

That aside, Minnesota Farm leaders gathered recently in Hawley to discuss the current state of the farm economy. They specifically emphasized the importance of trade opportunities across North America. Kaitlyn Blackwelder is the regional project manager for Minnesota Soybean.

Farm incomes fell eight percent last year due in large part to lost trade opportunities and a large supply of commodities driving down prices. And, that has the attention of ag lenders like Jennifer Sharpe, Market Vice President of AgCountry Farm Credit Services.

They and others are worried that unless the U.S.-Mexico-Canada Agreement gets ratified soon, things will only worsen. Ag exports to Mexico and Canada generate more than $1 billion for Minnesota every year. Those exports are only available with abundant trade opportunities. Mike Jurik is a grain merchandiser and works in the area of rail logistics for West Central Ag. He says the uncertainty is a huge strain on everyone in agriculture.

Farm leaders say the new European trade deal with Mexico is allowing the EU to displace U.S. sales in Mexico. The U.S., Canada, and Mexico finalized the deal last November but the pact is currently stalled in Congress. Karolyn Zurn is the American Agri-Women’s First Vice President of Vital Issues and Resolutions. She says the message is clear and direct to Congress.

During the roundtable discussion in Hawley, Minnesota’s farm leaders urged Minnesota’s elected officials to break the logjam on USMCA as soon as possible. Their message was a simple one: farmers need more trade opportunities.