Category: Ag Economics

  • Almond International Trade Barriers & the Biden Administration

    What is the current status of the international trade war impact on almonds and what changes can we anticipate in the foreseeable future? Watch this brief video with Julie Adams from the Almond Board of California and read more about it in Pacific Nut Producer Magazine.

    Please thank this video’s sponsor Suterra for their industry support.

  • Aflatoxin in Almonds: How are we Doing?

    In addition to the temporary effects of port congestion, COVID-19 and international trade wars, aflatoxin inspections and rejections have been a longer term issue and limiting factor for our almond industry exports. Julie Adams provided an update at the recent Almond Alliance Convention on how the industry is doing in keeping aflatoxin levels down to a minimum in their orchard and post harvest practices, as well as current discussions abroad on lowering the costly inspection requirements. Watch this brief video with Julie, and read more about it in Pacific Nut Producer Magazine.

    Please thank this video’s sponsor Suterra for their industry support.

  • A Plea for Farmer Engagement and Government Support of California GSAs

    As farmers face drought conditions once again this summer, local Groundwater Sustainability Agencies are still working on the planning and implementation of their Groundwater Sustainability Plans. Watch this brief video with Patricia Poire, Executive Director of the Kern Groundwater Authority, as she shares concerns and needs for both farmer and government support to meet the Sustainable Groundwater Management Act (SGMA) requirements.

    Please thank this video’s sponsor Suterra for their industry support.

  • California Farmland Trust to Host Inaugural Race to Slow the Pace at Bokisch Vineyards

    California Farmland Trust (CFT) will be hosting the inaugural Race to Slow the Pace run at Bokisch Vineyards on Sunday, Sept. 19, 2021. This live (virtual optional) 5K fundraiser aims to connect people with nature, the environment and the family farms that feed them. The run will foster a connection to the land and the importance of slowing the pace of development to protect valuable farmland.

    “We believe in connecting people with the land that feeds our families and the Race to Slow the Pace is a fun, healthy opportunity to take in the climate resilient environment that farmland provides,” shared Charlotte Mitchell, executive director at California Farmland Trust. “When we were brainstorming locations, Bokisch Vineyards was an obvious fit. Markus and Liz have a true appreciation for the land and have championed our mission. Not to mention, the course offers breath-taking views and opportunities to learn what makes Bokisch Vineyards unique.”

    Race to Slow the Pace runners will weave through the scenic Bokisch Vineyards, kicking-off where the winery meets the vineyard, continuing through the property on a maintained terrain, taking in the vines and the habitat, and eventually crossing the finish line at Bokisch’s infamous oak tree picnic area. Runners and registered guests will be served a paella lunch and celebrate with awards and Bokisch wine.

    “We’re honored to host the inaugural Race to Slow the Pace benefitting California Farmland Trust,” shared Markus and Liz Bokisch. “It’s been our mission to leave the land better than we found it, for our children and our children’s children, while also teaching and inspiring others towards that cause. We look forward to having trained runners, casual joggers, wine enthusiasts and those that simply love the land, visit our vineyard.”

    For event information visit www.cafarmtrust.org/racetoslowthepace. To learn more about Bokisch Vineyards visit www.bokischvineyards.com/.

  • Protect Citrus from Sweet Orange Scab and Lime Swallowtail Butterfly

    Citrus Pest & Disease Prevention Program — While limiting the spread of the Asian citrus psyllid and Huanglongbing are the highest priority for the California citrus industry and the Citrus Pest & Disease Prevention Program, the program continually monitors for a number of threats to the industry and has recently detected sweet orange scab (SOS) in new areas of the state. Additionally, an unofficial Lime Swallowtail Butterfly (LSB) sample was identified from Los Angeles County and several LSB sightings have been uploaded onto the iNaturalist application, including sightings in Los Angeles and San Luis Obispo counties.

    Sweet Orange Scab
    Sweet Orange Scab

    SOS is a cosmetic fungal disease that impacts the marketability of the fruit and effects all citrus, not just oranges. SOS is caused by the fungus Elsinöe australis, which is dispersed by water. You can recognize SOS by the scab-like lesions on fruit, and less frequently on leaves and twigs. SOS can cause premature fruit drop and stunt young nursery trees and new field plantings but has little impact on fruit quality.

    A positive detection of SOS was found during a commodity survey on the west side of Riverside County, the fourth detection in California within the last year and a half. To help protect citrus from SOS, growers and packinghouses within five miles from an SOS detection, and packinghouses throughout the state receiving fruit from groves within five miles from an SOS detection, are currently required to follow the below measures:

    • Sign an SOS compliance agreement with California Department of Food and Agriculture (CDFA).
    • Disinfect all fruit and field bins.
    • Collect and appropriately dispose of green waste.

    Per the Citrus Pest & Disease Prevention Committee’s direction, CDFA is also reviewing SOS impacts and analyzing the need to establish SOS interior quarantine regulations. Currently the program regulates areas within a five-mile radius from each SOS detection, following the United States Department of Agriculture’s quarantine protocols.

    Working hand in hand with growers, CDFA is exploring the rulemaking process to create state interior quarantines, which will avoid a broader statewide quarantine that would be more burdensome to the industry.

    Lime Swallowtail Butterfly

    There was one unofficial detection of LSB in Los Angeles and several reported sightings in Los Angeles and in San Luis Obispo counties.

    LSB in the larval stage eat citrus leaves and have been very damaging to nursery stock in other parts of the world. The larva looks similar to bird guano before maturing into green caterpillars. As butterflies, they are largely black with irregular yellow spots on the outer wings.

  • Western United Dairies Announces Aubrey Bettencourt as Director of Sustainability

    Western United Dairies – Continuing to provide resources and services for Californias dairy and cattle community, Western United Dairies (WUD) has hired Aubrey Bettencourt as the new Director of Sustainability, a position made possible by the California Cattle Council to benefit all dairy farmers, statewide.

    As Director of Sustainability, Bettencourt will support farmers in cultivating a shared vision of sustainability to achieve state and local natural resources goals and economic prosperity for Californias dairies, farmers, and ranchers by developing plans, projects, and programs specifically focusing on watershed health, meeting the direct needs of dairy farmers in maintaining a healthy California milkshed.

    Bettencourts skillsets will directly assist the industrys leading environmental and regulatory guru – Paul Sousa, by broadening the industrys ability to be laser focused on water supply. Bettencourt will work to ensure a strong milkshed remains in areas of the state that are critically over drafted through diversified production goals, exploring, among other things, groundwater banking and land management strategies, and identifying and securing opportunities and additional funding for watershed improvement projects. Bettencourts ability to bring diverse stakeholders together to identify and implement collaborative solutions will be key to helping our dairy farmers meet new regulatory and natural challenges, fostering working relationships among multiple interests including affected communities, domestic well users, tribes, the State Water Boards Division of Drinking Water, local planning departments, health officials, groundwater sustainability agencies, and disadvantaged communities.

    As a fourth generation California farmer, Bettencourt most recently served as Deputy Assistant Secretary of Water and Science at the Department of the Interior working extensively to bring efficiency and coordination among the federal water community with Bureau of Reclamation, USGS, and other DOI agencies & bureaus, along with USDA, EPA, DOE, DOC AND DOD for delivery of safe and reliable water supplies to the nation. Prior to DOI, Bettencourt served as USDA Farm Service Agency California State Director, where her mission was clear: keep farmers farming through the delivery of effective, efficient agricultural programs to Californias farmers, ranchers and agricultural partners. As executive director of a statewide nonprofit, California Water Alliance for nearly ten years, Bettencourts understanding of the dynamics and importance of memberfocused organizations, developed a network of diverse water leaders statewide bridging the gap between rural and urban, agriculture and environment advocating for water supply reliability for all Californians.

    Aubrey is committed to the work of the farmer and the agricultural community, and brings the knowledge, experience, expertise, and collaborative energy it will take to assure a sustainable and reliable dairy industry. Aubrey can be reached at aubrey@wudairies.com.

  • Foundation for Food & Ag Research Supports Dairy’s Net Zero Initiative with $10 Million Grant

    The Foundation for Food & Agriculture Research (FFAR) has awarded a $10 million grant in support of U.S. dairy’s Net Zero Initiative (NZI) as a critical on-farm pathway to advance the industrywide 2050 Environmental Stewardship Goals set through the Innovation Center for U.S. Dairy.

    The funding will support a six-year project – “Dairy Soil & Water Regeneration: building soil health to reduce greenhouse gases, improve water quality and enable new economic benefits” – that will produce data to be broadly shared among the dairy community to:

    • Provide measurement-based assessments of dairy’s greenhouse gas footprint for feed production
    • Set the stage for new market opportunities related to carbon, water quality and soil health

    The FFAR grant will be matched by financial contributions from NZI partners such as Nestlé, the dairy industry, including Newtrient, and in-kind support for a total of $23.2 million. The funds will be managed by the Dairy Research Institute (DRI), a 501(c)(3) non-profit entity founded and staffed by Dairy Management Inc. (DMI) to conduct vital research on behalf of the industry. DMI scientists will serve as the project leads to address research gaps in feed production and manure-based fertilizers that, once filled, will enable new markets, incentives and investments in dairy sustainability.

    “Addressing the U.S. dairy industry’s emissions is a critical solution to climate change,” said FFAR Executive Director Dr. Sally Rockey. “I know dairy farmers are working hard to decrease their environmental footprint and I’m thrilled to support their efforts by advancing research needed to adopt climate-smart practices on dairy farms across the country.”

    Through foundational science, on-farm pilots and development of new product markets, NZI aims to knock down barriers and create incentives for farmers that will lead to economic viability and positive environmental impact.

    “After six years, we will have data that accurately reflect our farms’ greenhouse gas footprint for dairy crop rotations with consideration for soil health management practices and new manure-based products,” said Dr. Jim Wallace, senior vice president of environmental research for DMI. “We expect to develop critical insights that link soil health outcomes, such as carbon sequestration, with practice and technology adoption. This will provide important background information to support the development of new carbon and water quality markets.”

    The project will be executed across four dairy regions responsible for about 80 percent of U.S. milk production: Northeast, Lakes, Mountain and Pacific. It entails a collaboration of NZI, the Soil Health Institute and leading dairy research institutions, including: Cornell University, University of California at Davis, Texas A&M AgriLife Research, University of Wisconsin-Madison, University of Wisconsin-Platteville, University of Vermont, and U.S. Department of Agriculture Agricultural Research Service (USDA ARS) Northwest Irrigation and Soils Research in Kimberly, Idaho.

    Dozens of dairies representing climates and soils of these major production regions will participate in a baseline survey of soil health and carbon storage. Additionally, eight farms, including five operating dairies, two university research dairies and one USDA ARS research farm, will participate in the project. These pilots will be used to engage farmers in soil health management practices and monitor changes in greenhouse gas emissions, soil carbon storage, soil health and water quality.

    FFAR builds public-private partnerships to support bold science that fills critical research gaps. Working with partners across the private and public sectors, FFAR identifies urgent challenges facing the food and agriculture industry and funds research to develop solutions.

    NZI is an industry-wide effort led by six national dairy organizations: DMI, Innovation Center for U.S. Dairy, International Dairy Foods Association, Newtrient, National Milk Producers Federation and the U.S. Dairy Export Council. This collaboration represents a critical pathway on U.S. dairy’s sustainability journey.

    Ultimately, NZI hopes to support the industry to advance toward its collective goals, realize untapped value to support economic viability and enable other industries and communities to be more sustainable.

    For more information about dairy sustainability, visit www.usdairy.com/sustainability

     
    About Dairy Management Inc.  
    Dairy Management Inc.™ (DMI) is funded by America’s 35,000 dairy farmers, as well as dairy importers. Created to help increase sales and demand for dairy products, DMI and its related organizations work to increase demand for dairy through research, education and innovation, and to maintain confidence in dairy foods, farms and businesses. DMI manages National Dairy Council and the American Dairy Association, and founded the U.S. Dairy Export Council, and the Innovation Center for U.S. Dairy.  
     
    About the Innovation Center for U.S. Dairy and U.S. Dairy Net Zero Initiative
    The Innovation Center for U.S. Dairy® is a leadership forum that brings together the dairy community and third parties to address the changing needs and expectations of consumers and customers. Initiated in 2008 by dairy farmers through the dairy checkoff, Innovation Center leaders and members collaborate on important areas like the environment, nutrition and health, animal care, food safety, and community contributions. Through the Innovation Center, the U.S. dairy community demonstrates its commitment to continuous improvement from farm to table, striving to ensure a socially responsible and economically viable dairy community. For more information, visit www.usdairy.com/about-us/innovation-center
     
    About Foundation for Food & Agriculture Research

    The Foundation for Food & Agriculture Research (FFAR) builds public-private partnerships to fund bold research addressing big food and agriculture challenges. FFAR was established in the 2014 Farm Bill to increase public agriculture research investments, fill knowledge gaps and complement USDA’s research agenda. FFAR’s model matches federal funding from Congress with private funding, delivering a powerful return on taxpayer investment. Through collaboration and partnerships, FFAR advances actionable science benefiting farmers, consumers and the environment.

  • Soil Health Institute Selected as Soil Science Research Partner for Dairy Net Zero Initiative

    The Soil Health Institute (SHI), the non-profit charged with safeguarding and enhancing the vitality and productivity of soils, has been selected as the soil science research partner for Dairy Soil & Water Regeneration, an essential project to advance the work of the U.S. dairy Net Zero Initiative (NZI).

    In support of the NZI, the Foundation for Food & Agriculture Research (FFAR) has awarded a $10 million grant as the on-farm pathway to advance the industrywide 2050 Environmental Stewardship Goals set by the Innovation Center for U.S. Dairy.

    The funding will support a six-year project – “Dairy Soil & Water Regeneration: building soil health to reduce greenhouse gases, improve water quality and enable new economic benefits” – that will produce data to be broadly shared among the dairy community to:

    • Provide measurement-based assessments of dairy’s greenhouse gas footprint for feed production
    • Set the stage for new market opportunities related to carbon, water quality, and soil health

    The FFAR grant will be matched by financial contributions from NZI partners such as Nestlé, the dairy industry, including Newtrient, and in-kind support for a total of $23.2 million. The funds will be managed by the Dairy Research Institute (DRI), a 501(c)(3) non-profit entity founded and staffed by Dairy Management Inc. (DMI) to conduct vital research on behalf of the industry. SHI will work alongside DMI scientists to address research gaps in feed production and manure-based fertilizers that, once filled, will enable new markets, incentives, and investments in dairy sustainability.

    “Addressing the U.S. dairy industry’s emissions is a critical solution to climate change,” said FFAR Executive Director Dr. Sally Rockey. “I know dairy farmers are working hard to decrease their environmental footprint and I’m thrilled to support their efforts by advancing research needed to adopt climate-smart practices on dairy farms across the country.”

    Through foundational science, on-farm pilots, and development of new product markets, NZI aims to knock down barriers and create incentives for farmers that will lead to economic viability and positive environmental impact.

    “After six years, we will have data that accurately reflect our farms’ greenhouse gas footprint for dairy crop rotations with consideration for soil health management practices and new manure-based products,” said Dr. Jim Wallace, senior vice president of environmental research for DMI. “We expect to develop critical insights that link soil health outcomes, such as carbon sequestration, with practice and technology adoption. This will provide important background information to support the development of new carbon and water quality markets.” 

    Specifically, SHI will be responsible for:

    • Providing the design, implementation, and technical expertise, from plot to national scales, for measuring soil health, greenhouse gas emissions, and soil carbon storage.
    • Quantifying the role of new manure products and soil health systems for reducing the greenhouse gas footprint of dairy feed production.

    “Through the adoption of soil health systems, research has shown many on-farm and environmental benefits,” said Dr. Cristine Morgan, Chief Scientific Officer at the Soil Health Institute, ”We’re excited to apply these learnings to a dairy context and validate, beyond a proof of concept, real-world outcomes of adopting soil health management and novel manure products on soil health, water quality, and greenhouse gases that have a positive impact for the planet.”

    The project will be executed across four dairy regions responsible for about 80 percent of U.S. milk production: Northeast, Lakes, Mountain, and Pacific. It entails a collaboration of NZI, the Soil Health Institute, and leading dairy research institutions, including: Cornell University, University of California at Davis, Texas A&M AgriLife Research, University of Wisconsin-Madison, University of Wisconsin-Platteville, University of Vermont, and U.S. Department of Agriculture Agricultural Research Service (USDA ARS) Northwest Irrigation and Soils Research in Kimberly, Idaho.

    Dozens of dairies representing climates and soils of these major production regions will participate in a baseline survey of soil health and carbon storage. Additionally, eight farms, including five operating dairies, two university research dairies, and one USDA ARS research farm, will participate in the project. These pilots will be used to engage farmers in soil health management practices and monitor changes in greenhouse gas emissions, soil carbon storage, soil health, and water quality.

    FFAR builds public-private partnerships to support bold science that fills critical research gaps. Working with partners across the private and public sectors, FFAR identifies urgent challenges facing the food and agriculture industry and funds research to develop solutions.

    NZI is an industry-wide effort led by six national dairy organizations: DMI, Innovation Center for U.S. Dairy, International Dairy Foods Association, Newtrient, National Milk Producers Federation, and the U.S. Dairy Export Council. This collaboration represents a critical pathway on U.S. dairy’s sustainability journey.

    Ultimately, NZI hopes to support the industry to advance toward its collective goals, realize untapped value to support economic viability, and enable other industries and communities to be more sustainable.

    For more information about dairy sustainability, visit www.usdairy.com/sustainability.

    ABOUT SOIL HEALTH INSTITUTE

    The Soil Health Institute is a global non-profit with a mission to safeguard and enhance the vitality and productivity of soil through scientific research and advancement. We bring together leaders in soil health science and the industry to help farmers, ranchers, and landowners adopt soil health systems that build drought resilience, stabilize yield, and benefit their bottom line. The Institute’s team of scientists, holding doctorates in various soil science and related disciplines, has developed highly effective soil health targets and standardized measurements to quantify progress at achieving regenerative and sustainable agricultural systems, and leads the cutting-edge fields of carbon sequestration and decoding the soil microbiome. Healthy soils are the foundation for rejuvenating our land. Together, we can create a secure future for all, mitigate the effects of climate change, and help agriculture and organizations meet production and environmental goals at scale. Visit soilhealthinstitute.org to learn more and follow us on LinkedIn, Twitter, and Facebook.

    ABOUT DAIRY MANAGEMENT INC. 

    Dairy Management Inc.™ (DMI) is funded by America’s 35,000 dairy farmers, as well as dairy importers. Created to help increase sales and demand for dairy products, DMI and its related organizations work to increase demand for dairy through research, education and innovation, and to maintain confidence in dairy foods, farms and businesses. DMI manages National Dairy Council and the American Dairy Association, and founded the U.S. Dairy Export Council, and the Innovation Center for U.S. Dairy. 

    ABOUT THE INNOVATION CENTER FOR U.S. DAIRY®

    The Innovation Center for U.S. Dairy is a forum that brings together the dairy community to address the changing needs and expectations of consumers through a framework of shared best practices and accountability. Initiated in 2008 by dairy farmers, Innovation Center members collaborate on efforts that are important both to us and our valued customers – issues like animal care, food safety, nutrition and health, the environment and economics. The Innovation Center is committed to continuous improvement from farm to table, striving to provide the world responsibly produced dairy foods that nourish people, strengthen communities and foster a sustainable future.

    ABOUT THE FOUNDATION FOR FOOD & AGRICULTURE RESEARCH

    The Foundation for Food & Agriculture Research (FFAR) builds public-private partnerships to fund bold research addressing big food and agriculture challenges. FFAR was established in the 2014 Farm Bill to increase public agriculture research investments, fill knowledge gaps and complement USDA’s research agenda. FFAR’s model matches federal funding from Congress with private funding, delivering a powerful return on taxpayer investment. Through collaboration and partnerships, FFAR advances actionable science benefiting farmers, consumers and the environment.

  • Farm Service Agency Now Accepting Nominations for County Committee Members

    The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) began accepting nominations for county committee members on June 15. Elections will occur in certain Local Administrative Areas (LAA) for these members who make important decisions about how federal farm programs are administered locally. All nomination forms for the 2021 election must be postmarked or received in the local FSA office by Aug. 2, 2021.

    “We need enthusiastic, diverse leaders to serve other agricultural producers locally on FSA County Committees,” said FSA Administrator Zach Ducheneaux. “Just as our nation’s agriculture industry is diverse from coast to coast, so are the viewpoints and experiences that you can represent on your local committee. Now’s your time to step up and truly make an impact on how federal programs are administered at the local level to reach all producers fairly and equitably.”

    Agricultural producers who participate or cooperate in a USDA program, and reside in the LAA that is up for election this year, may be nominated for candidacy for the county committee. A cooperating producer is someone who has provided information about their farming or ranching operation to FSA, even if they have not applied or received program benefits. Individuals may nominate themselves or others and qualifying organizations may also nominate candidates. USDA encourages minority producers, women and beginning farmers or ranchers to nominate, vote, and hold office.

    Nationwide, more than 7,700 dedicated members of the agricultural community serving on FSA county committees. The committees are made up of three to 11 members who serve three-year terms. Producers serving on FSA county committees play a critical role in the day-to-day operations of the agency. Committee members are vital to how FSA carries out disaster programs, as well as conservation, commodity and price support programs, county office employment and other agricultural issues.

    LAAs are elective areas for FSA committees in a single county or multi-county jurisdiction. This may include LAAs that are focused on an urban or suburban area.

    Urban and Suburban County Committees

    The 2018 Farm Bill directed USDA to form urban county committees as well as make other advancements related to urban agriculture, including the establishment of the Office of Urban Agriculture and Innovative Production. FSA established county committees specifically focused on urban agriculture. The urban county committees will work to encourage and promote urban, indoor and other emerging agricultural production practices. Additionally, the new county committees may address areas such as food access, community engagement, support of local activities to promote and encourage community compost and food waste reduction.

    Urban committee members are nominated and elected to serve by local urban producers in the same jurisdiction. These members are a vital link in the effective administration of USDA programs and are responsible for carrying out programs in full accordance with the regulations, national and state policies, procedures, and instructions. Urban county committee members will provide outreach to ensure urban producers understand USDA programs and serve as the voice of other urban producers and assist in program implementation that support the needs of the growing urban community.  Urban county committees must see that county office operations are supportive and that they receive timely and quality service by carrying out responsibilities effectively, efficiently, and impartially. Learn more at farmers.gov/urban.

    More Information

    Producers should contact their local FSA office today to register and find out how to get involved in their county’s election. They should check with their local USDA Service Center to see if their LAA is up for election this year. To be considered, a producer must be registered and sign an FSA-669A nomination form or an FSA-669-A-3 for urban county committees. The form and other information about FSA county committee elections are available at fsa.usda.gov/elections.

    Election ballots will be mailed to eligible voters beginning Nov. 1, 2021. To find your local USDA Service Center, visit farmers.gov/service-locator.

  • North American Meat Institute Urges Secretary Vilsack to Address Challenges at Ports

    With delays and congestion at U.S. ports hurting U.S. agriculture exports, including meat and poultry products, the North American Meat Institute (Meat Institute) today urged U.S. Secretary of Agriculture Tom Vilsack and the Congress to confront the crisis as part of efforts to improve and strengthen the food supply chain.

    “As part of USDA’s focus on ensuring America’s food supply chain is resilient, diverse and secure, we urge Secretary Vilsack to help resolve persistent challenges at our ports,” said Julie Anna Potts, President and CEO of the Meat Institute.

    At issue is the continued behavior of ocean carriers to decline to carry U.S. agriculture commodity exports and instead return empty containers to Asian markets to fill them with more lucrative consumer goods to export back to the U.S. Further, ocean carriers and marine terminal operators are charging excessive and unreasonable detention and demurrage fees assessed on U.S. importers and exporters for the failure of these importers and exporters to either retrieve a container from a marine terminal or return one within a specified amount of time, even if delays in retrieving or returning containers are beyond the control of the importer or exporter.

    “Failure to hold these carriers accountable could have long-lasting, detrimental effects for the trade-dependent U.S. meat and poultry industry and agriculture sector which has caused $1.5 billion in lost revenue,” said Potts. “If current ocean carrier practices persist, and are not subject to oversight, then the U.S. meat and poultry industry, its workers and the communities it supports will struggle to access these vital markets that have been cultivated over decades.”

    The U.S. Department of Agriculture estimates that the $141.6 billion in U.S. agricultural export value in 2019 generated an additional $160 billion in economic activity for a total of $301.6 billion in economic output.

    The Meat Institute underscored these concerns in testimony provided today to the House Committee on Transportation and Infrastructure Subcommittee On Coast Guard and Maritime Transportation for its hearing entitled: “Impacts of Shipping Container Shortages, Delays, and Increased Demand on the North American Supply Chain.”

    The following are key excerpts from the testimony:

    “Asia accounts for a significant portion of U.S. meat and poultry trade, with China, Japan, and Korea among the top markets for both beef and pork annually. The U.S. meat and poultry industry has earned the reputation of being a reliable supplier of safe, high-quality products to these export markets. But the European Union, Australia, and countries in South America are ready to fill the void left by the U.S.’s absence – an absence resulting directly from ocean carriers’ nefarious actions. Once foreign competitors seize previously held U.S. market share, it becomes increasingly difficult, if not impossible, to recapture the same level of hard-earned access.

    “The U.S. meat and poultry industry counts on these markets to send products that otherwise would not be consumed, or would be consumed in extremely low quantities, by Americans. As a result, the U.S. domestic market would not easily absorb these products, placing undue economic pressure on livestock producers, packers, and processors, and the communities they support. Moreover, it would be cost prohibitive for many of these businesses to reengineer supply chains or to find alternative buyers to fulfill overseas contracts. Continued port disruptions could also undermine the U.S.’s food supply, which relies on imports to fill gaps in U.S. production. This would inevitably curtail consumer choice.

    “Because meat and poultry exports are perishable, with a relatively short shelf-life in the case of chilled meat products, the decision by ocean carriers to cancel export bookings or bypass carrying U.S. agriculture products altogether is particularly consequential. These exports cannot withstand extensive disruptions or delays, and should not be forced to if there is sufficient space available on a vessel. Yet, often ocean carriers are departing U.S. ports with vessels loaded at less than 50 percent capacity – a stark contrast to the near 100 percent capacity observed on vessels making the journey to the U.S. These cancellations and delays are costing U.S. meat and poultry companies millions, as they are forced to downgrade, discard, or divert product in the case of exports, and source from non-traditional suppliers at extremely high prices in the case of imports.

    “Those costs are compounded by excessive and unreasonable detention and demurrage fees assessed on U.S. importers and exporters by ocean carriers and marine terminal operators for the failure of these importers and exporters to either retrieve a container from a marine terminal or return one within a specified amount of time. The Federal Maritime Commission (FMC) has found that ocean carriers and marine terminal operators regularly issue these costly penalties even if delays in retrieving or returning containers are beyond the control of the importer or exporter. Although the FMC has deemed such charges to be “unreasonable,” and in violation of the Shipping Act, ocean carriers and marine terminal operators have faced few, if any, consequences for imposing these exorbitant, punitive costs. The Meat Institute, along with many of its counterparts in the agriculture sector, supported FMC’s investigation Fact Finding No. 29, “International Ocean Transportation Supply Chain Engagement,” to address ocean carriers’ predatory or unreasonable behavior, and its attendant Interpretive Rule setting forth guidelines for detention and demurrage. It is now essential that FMC be granted the proper authority to enforce this rule and stem the practices it identified that continue to hamper U.S. agricultural trade.

    “Taken together, the costs outlined in this testimony have forced smaller businesses that rely on trade, both imports and exports, to shutter, and have cost the U.S. agriculture sector more than $1.5 billion in lost revenue. In the process, jobs have been lost, wages depressed, and communities gutted. As the U.S. emerges from the economic hardship inflicted by the COVID-19 pandemic, our farmers, ranchers, agricultural producers, manufacturers, and food industry workers need functioning ports, and the access to export markets and critical inputs they afford.

    “NAMI appreciates the attention this issue has garnered in Congress, including the strong bipartisan support for a resolution to many of the concerns described in this testimony. More urgent action is necessary to ensure the continued competitiveness of U.S. agriculture exports abroad and to preserve the jobs of millions of hardworking Americans employed by the trade-dependent agriculture sector and meat and poultry industry. The ambiguity of FMC’s authority to apply enforcement measures in response to abusive ocean carrier practices has only accelerated the carriers’ exploitative behavior. Granting the FMC explicit statutory authority to enforce its detention and demurrage rule could help stem future abuses. American importers and exporters would also benefit from efforts to shift the burden of proof to carriers and terminals to confirm detention and demurrage charges comply with FMC’s rule. It is equally important to prevent ocean carriers from declining export cargo bookings if such cargo can be safely loaded on vessels in an appropriate timeframe; the fate of U.S. agriculture exports should not solely be determined by carriers. Addressing this crisis not only involves holding ocean carriers accountable for their actions, it also requires improving port efficiencies, including expanding the hours U.S. marine terminals operate and ensuring an adequate supply of labor to staff the additional gate hours. The Meat Institute is ready to work with members of Congress on solutions to these concerns. ”

    For the full testimony go here.

    About North American Meat Institute

    The North American Meat Institute is a leading voice for the meat and poultry industry. The Meat Institute’s members process the vast majority of U.S. beef, pork, lamb, and poultry, as well as manufactures the equipment and ingredients needed to produce safe, high quality meat and poultry products.