The Senate Ag Committee held a Farm Bill hearing yesterday that focused on agricultural research. Recall that the Committee convened its first Farm Bill discussion back in February in Manhattan, Kansas, and conducted an additional hearing on Farm Bill related issues last month in Frankenmuth, Michigan. And on May 25th, the Committee heard testimony from the USDA Chief Economist as it examined the state of the farm economy. Today’s update highlights some of the issues that lawmakers focused on at yesterday’s hearing, including the extension service, animal related diseases, and the Trump administration’s agricultural budget proposal.
Keith Good
Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
At Senate Appropriations Hearing, Secretary of Agriculture Sonny Perdue Discusses White House Budget- Crop Insurance, Research, and Dairy
The Senate Appropriations Subcommittee on Agriculture held a hearing yesterday to discuss the President’s FY2018 budget request and heard testimony from Agriculture Secretary Sonny Perdue. Recall that late last month, Sec. Perdue discussed the executive branch agricultural budget outline before the House Appropriations Subcommittee on Agriculture. Recent news articles have documented concerns about the President’s budget proposal, particularly when it comes to crop insurance and the SNAP program (food stamps). Today’s update highlights three issues that Senators discussed at yesterday’s meeting: Crop insurance, federal agricultural related research, and dairy issues with Canada.
House Ag Committee Farm Bill Hearing- SNAP in Focus
The House Ag Committee of the 115th Congress has conducted full Committee and Subcommittee Farm Bill hearings over the past few months on a variety of issues, including: the farm economy; conservation; rural development and energy programs; specialty crops; livestock and dairy issues; farm policy and farm credit, and cotton. In addition, the Committee also heard perspective on the farm economy and farm policy last month from Secretary of Agriculture Sonny Perdue. Last week, the House Ag Committee continued its policy work by holding two hearings: one, which covered SNAP (food stamps) technology and modernization issues, and another that underscored the importance of international food aid. Today’s update focuses on the developments related to the SNAP program.
Agriculture “Holding Its Breath” as NAFTA Renegotiation Nears
Andrew Soergel reported earlier this week at U.S. News Online that, “As President Donald Trump’s administration sifts through its trade toolbox, preparing to tinker with the North American Free Trade Agreement, the agriculture world is holding its breath.”
U.S. Ag Exports to China: Soybeans and Corn
Mary A. Marchant indicated recently at Choices Online that, “International trade deficits have recently been reputed as ‘bad’ for the economy; however, agriculture has posted a trade surplus since 1959. For U.S. agriculture, trade represents 20% of farmers’ income on average, and more for specific commodities—70% for cotton and tree nuts; 50% for wheat, rice, and soybeans: and almost 20% for meat and dairy products. Thus, tossing trade would be comparable to U.S. farmers destroying 20% of their yields. China, which has advanced to become the United States’ largest agricultural export market in an unprecedented time frame, plays a key role in the economic wellbeing of U.S. agriculture.”
Concerns Over Trump Ag Budget Proposal Persist– Crop Insurance, SNAP
Recent news articles have pointed to ongoing concerns with respect to President Trump’s budget proposals, specifically when it comes to proposed cuts to crop insurance and the SNAP program (food stamps). Late last month, lawmakers on the House Ag Appropriations Subcommittee discussed these issues with Secretary of Agriculture Sonny Perdue, and today’s update provides additional perspective on these budget items.
Federal Reserve: Observations on the Ag Economy- May ’17
On Wednesday, the Federal Reserve Board released its May 2017 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.
Wall Street Journal Looks at Rural America, “The New ‘Inner City'”
Janet Adamy and Paul Overberg reported on the front page of Saturday’s Wall Street Journal that, “At the corner where East North Street meets North Cherry Street in the small Ohio town of Kenton, the Immaculate Conception Church keeps a handwritten record of major ceremonies. Over the last decade, according to these sacramental registries, the church has held twice as many funerals as baptisms. In tiny communities like Kenton, an unprecedented shift is under way. Federal and other data show that in 2013, in the majority of sparsely populated U.S. counties, more people died than were born—the first time that’s happened since the dawn of universal birth registration in the 1930s.”
Senate Ag Committee Examines the Farm Economy
Yesterday, the Senate Ag Committee held a hearing titled, “Examining the Farm Economy: Perspectives on Rural America,” where lawmakers heard testimony from four witnesses, including the Chief Economist from USDA, and a Federal Reserve Bank district economist. Today’s update provides an overview of yesterday’s meeting with particular emphasis on crop prices, land values, and trade. Recall that the House Ag Committee held a similar hearing on the farm economy back in February.
At Appropriations Hearing, Secretary of Agriculture Sonny Perdue Discusses White House Budget- Crop Insurance, SNAP
Yesterday, the House Appropriations Subcommittee on Agriculture held a hearing with Secretary of Agriculture Sonny Perdue to discuss the Administration’s priorities for the Department of Agriculture and to review the President’s proposed 2018 budget. Today’s update highlights two issues that lawmakers discussed at yesterday’s meeting: Crop Insurance and the SNAP (food stamps) program.
In Budget Proposal, White House Seeks Cuts To Agriculture
Reuters writer P.J. Huffstutter reported earlier this week that, “The White House budget on Monday proposed $46.54 billion in cuts to federal government funding for the agriculture sector over the next 10 years. President Donald Trump’s biggest cut would come in the form of a $38 billion bite out of farm supports, including new limits on federal subsidies for crop insurance premiums and caps for commodity payments.”
Ag Economy: Farmers “Battle for Profits”
Donnelle Eller reported on the front page of Sunday’s Des Moines Register that, “This year could be pivotal for many Iowa farmers, battling to turn a profit as they plant 23.4 million corn and soybean acres across the state. Financial pressure is beginning to show.”
NAFTA Renegotiation Formally Launched– Agricultural Perspectives
Shawn Donnan and Jude Webber reported on Thursday at The Financial Times Online that, “Donald Trump has fired the starting gun on renegotiations of the North American Free Trade Agreement with Canada and Mexico, with his administration notifying Congress on Thursday that it planned to begin formal talks as soon as August.”
Secretary Perdue Provides Outlook and Overview at House Ag Committee Hearing
Secretary of Agriculture Sonny Perdue testified before the House Agriculture Committee yesterday at a hearing on the “State of the Rural Economy.” Today’s update includes an overview of the testimony provided by the former GOP Governor of Georgia, as well as as some of the issues lawmakers addressed during the hearing, which lasted over three hours.
Wall Street Journal- Special Section on Agricultural Issues
Yesterday’s Wall Street Journal included a special section on agricultural issues. The section included several articles that covered a variety of different topics ranging from urban farming, to creative new uses for crops, to export shipping issues. Today’s update highlights articles in yesterday’s paper that focused on farmer’s adaptation to weather changes, the use of big data, and the ultrafiltered milk trade dispute with Canada.
USDA Reorganization Proposal Highlights Trade; China Trade Deal Includes Beef
Donnelle Eller reported on the front page of Friday’s Des Moines Register that, “Opening markets for U.S. corn, soybeans and other farm goods would get more attention under a major reorganization proposal Thursday from U.S. Ag Secretary Sonny Perdue, who wants to create a new undersecretary for trade. With the farm downturn entering a fourth year, ag groups lauded the move.”
Federal Reserve Ag Surveys Provide Updated Look at the U.S. Farm Economy
On Thursday, the Federal Reserve Banks of Chicago, St. Louis and Kansas City each released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of this year. Today’s update provides a brief overview of yesterday’s reports.
Senate Ag Committee Holds Second Farm Bill Hearing
The Senate Ag Committee held its second Farm Bill hearing on Saturday in Frankenmuth, Michigan. Chairman Pat Roberts (R., Kans.) pointed out that, unlike when the last Farm Bill was drafted, the U.S. agricultural economy is struggling right now. At a press briefing at the conclusion of the hearing, he indicated that trade was an important variable in assisting with the current low price environment. A variety of important issues were discussed by witnesses on Saturday, in two separate panels; today’s update highlights remarks that were made on trade, crop insurance, the Conservation Reserve Program, the dairy program, and the SNAP program.
Secretary Perdue Visits Iowa- Discusses Trade, RFS
Secretary of Agriculture Sonny Perdue visited an Iowa farm on Friday and took questions from producers. In his remarks, Secretary Perdue addressed a number of issues; today’s update focuses more narrowly on his comments relating to trade and biofuels. Also, Secretary Perdue was in Arkansas on Sunday to survey flood damage with Arkansas Governor Asa Hutchinson.
Prices Concern Farmers and Ag Lenders; Sec. Perdue Comments on NAFTA; Spring Weather Causes Havoc
Today’s update looks briefly at the U.S. agricultural economy from a variety of perspectives. A recent news report has shown that some Corn Belt producers may be losing money from farming this year, while a survey of agricultural lenders this month demonstrates that many are concerned about commodity prices, liquidity and farm income. Secretary of Agriculture Sonny Perdue has stated that U.S. farmers won’t be worse off if NAFTA is renegotiated, and adverse weather conditions continue to adversely impact farmers and ranchers in the Nation’s midsection.