California Ag Network

Category: Ag Economics

  • NAWG Member Testifies on Importance of Grain Inspection System for U.S. Export Markets

    Today, the Senate Committee on Agriculture held a hearing looking at perspectives around reauthorizing the Grain Standards Act. Brian Linin, a wheat farmer from Goodland, Kansas, testified on behalf of the National Association of Wheat Growers (NAWG) on the importance of reauthorizing the Grain Standards Act. Linin also serves as a board member of the U.S. Wheat Associates and works for Frontier Ag, Inc.

    Highlights from his testimony can be found below:

    “The Grain Standards Act serves a critical role in exporting grains and oilseeds, including U.S. wheat, of which about 50% is exported each year. With such a large volume of wheat being exported, our export markets are critical to wheat farmers’ bottom lines…

    “The grain inspection system is one that is valued by our overseas customers and adds value to our commodities. Foreign customers can be assured that an independent agency has certified shipments to meet the grade requirements specified in a contract. This certainty and reliability has helped wheat and other U.S. commodities to grow our export markets and serves as a significant advantage of purchasing U.S. wheat versus wheat from other origins…

    “A properly functioning grain inspection system is critical, and we urge Congress to reauthorize the Grain Standards Act this year. Despite the significant impacts of tariffs on exports, U.S. wheat has maintained some competitiveness in the international market in part thanks to the advantage and premium international buyers place on the U.S. grain inspection system.

    ”Given the current uncertainty in trade agreements and many of the bearish factors working against U.S. wheat exports, it is critical we maintain one of our key advantages. Foreign and domestic customers value an independent agency certifying shipments to meet the grade requirements of contracts.”

    To read Brian Linin’s testimony in its entirety, visit NAWG’s site here.

    About NAWG
    NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

  • New Studies Show Soil Health Practices Increase Farm Profitability

    Today, American Farmland Trust (AFT), the organization behind the national movement No Farms No Food®, is releasing four case studies that show that healthier soil on farmland brings economic benefits to farmers and environmental benefits to society. These case studies were developed in partnership with USDA’s Natural Resources Conservation Service (NRCS).

    AFT Water Initiative Director Dr. Michelle Perez, the lead researcher on the project, is unveiling the case studies at the Soil and Water Conservation Society annual conference today. The case studies were developed as part of a 2018 NRCS Conservation Innovation Grant (CIG) project, “Accelerating Soil Health Adoption by Quantifying Economic and Environmental Outcomes and Overcoming Barriers on Rented Lands,” and feature farms in California, Illinois, Ohio and New York.

    “Increasingly, we understand that better soil health – and specific practices aimed at building soil organic matter, fostering microbial life in the soil, reducing nutrient loss, and protecting soil from erosion – lead to higher net income for farming operations. These case studies contribute to the growing body of quantitative evidence that improving soil health increases farmer profitability,” said Dr. Perez.

    The two-page case studies focus on corn-soybean production in Illinois and Ohio, almond production in California and a diversified rotation (sweet corn, alfalfa, corn for silage or grain) in New York. The four farmers featured implemented soil health practices like no-till or strip-till, nutrient management, cover crops, compost, and mulching.

    “When it comes to conservation, producers have to make decisions based on what makes the most sense for their operations,” said NRCS Chief Matthew Lohr. “These case studies provide information on the economic benefits of using soil health management systems, demonstrating the value of adopting these systems.”

    With soil health management, producers can increase their yield, decrease their risk and input costs, and improve their profits, all while conserving our nation’s resources for the public at large, on their farms, in their watersheds, and beyond. Soil health management systems are good for farmers and for the public.

    “Increased implementation of soil health is critical to AFT’s holistic approach to saving the land that sustains us. Ensuring a sustainable future for this planet and our society requires we value the land, the practices on the land and the people who steward that land. AFT’s case studies showcase farmers who took the risk and are now enjoying the benefits of implementing practices that will support food production for a growing population while improving our environment and sequestering carbon. Farmers across the country can now embrace these practices and, with the help of staffers from AFT and our partner NRCS, put them into practice with greater confidence and profitability,” says John Piotti, AFT president and CEO.

    Highlights from the case studies include:

    • All four of the farmers profiled saw improved yields ranging from 2% to 22% that they attributed, in part, to their soil health practices. The average return on investment was 176% for the four farms in the study and ranged from 35% to 343%. The study accounted for other factors at play in increased yield such as improved seed varieties and increased seeding rates.
    • All four farmers saw improved water quality outcomes, both by witnessing reduced soil and water runoff and as estimated by USDA’s Nutrient Tracking Tool (NTT). NTT estimated that nitrogen reductions ranged from 40% to 98%, phosphorus reductions ranged from 74% to 92%; and sediment reductions ranged from 76% to 96% from specific fields in each farm.
    • All four farmers saw improved climate outcomes, as estimated by USDA’s COMET-Farm Tool. The tool estimated that total greenhouse gas emission reductions from specific fields in each farm ranged from 16% to 560%, corresponding to taking three-fourths of a car to 17 cars off the road.

    All four farmers have been implementing different soil health practices over different time frames and a variety of cropping systems. With these case studies and the ones that will be released in the fall, AFT is building a diverse library of on-farm examples of soil health investments that have led to economic gain.

    We hope that farmers who have been considering adding soil health practices to their operation will be able to use these case studies to approach their existing landowners, from whom they rent their land, to discuss sharing the risks and rewards of the soil health investments. We think farmers may be able to use the case studies with a new landlord to add new fields. Should that materialize, we hope farmers will also share the case studies with their bankers to secure additional financing for the farm expansion.

    Farmers across the country can reach out to their local NRCS and Soil and Water Conservation District staff to help them implement soil health practices on their farm. In the watersheds featured in the four case studies, farmers can reach out to both the local NRCS and SWCD staff as well as the four AFT authors of the case studies.

    We hope our conservation partners at NRCS, SWCD and Extension, plus our partners in the private sector, crop consultants, cover crop seed dealers, and strip-till equipment providers, use these case studies with their customers to help answer questions about the costs and benefits of adopting soil health practices.

    AFT’s first four case studies can be found on AFT’s “Accelerating Soil Health” webpage.

    American Farmland Trust is the only national organization that takes a holistic approach to agriculture, focusing on the land itself, the agricultural practices used on that land, and the farmers and ranchers who do the work. AFT launched the conservation agriculture movement and continues to raise public awareness through our No Farms, No Food message. Since our founding in 1980, AFT has helped permanently protect over 6.5 million acres of agricultural lands, advanced environmentally-sound farming practices on millions of additional acres and supported thousands of farm families.

    USDA’s Natural Resources Conservation Service (NRCS) mission is “Helping People Help the Land.” NRCS helps America’s farmers, ranchers and forest landowners conserve the nation’s soil, water, air and other natural resources. All programs are voluntary and offer science-based solutions that benefit both the landowner and the environment.

  • Economic Study Bolsters Value Of Generic Marketing Efforts By Pistachio Industry

    American Pistachio Growers’ (APG) efforts to reduce or eliminate trade barriers in several key overseas markets have been a significant boon to pistachio exports and to growers’ bottom-line. A new study, “An Analysis of the Effects of the American Pistachio Growers’ Program to Reduce/Eliminate Tariffs on U.S. Pistachios,” has quantified, for the first time, the direct benefit to the U.S. pistachio industry from APG’s strategic program to vanquish trade barriers.

    The analysis from Dr. Dennis H. Tootelian, an emeritus Professor of Marketing, sought to determine what shipments of U.S. pistachios would have been if tariffs had not been lowered or eliminated in Israel, Mexico, China and Hong Kong, and the European Union which are the export markets prioritized for focus by APG. Many of his analyses centered on the period from 2009 through 2017 — the period in which tariffs were reduced in all five geographic areas.

    Tootelian’s study showed that actual shipments of U.S. pistachios after the tariffs were reduced or eliminated for each export market were more than 2.3 billion pounds greater than what would have been expected had the tariffs remained in place. Equated in economic terms, the boost in export volume after the trade barriers had been removed amounted to nearly $3 billion greater value than what would have been expected had the tariffs remained in effect.

    While Tootelian did not have any prior expectations of what his study would show, he was surprised by the findings.

    “To see this kind of an increase in shipments on a before and after basis with the tariffs did surprise me. I did not expect this kind of result in the marketplace. These are not small numbers,” Tootelian said.   “What the data tell me is that there is latent demand for U.S. pistachios and once the tariffs come down, foreign markets want to buy them.”

    Tootelian said the projected economic boon to U.S. growers is even more profound if the fluctuations in prices in China and Hong Kong were eliminated from the analysis.

    “If you take the price fluctuations in China and Hong Kong out, the increase in value of pistachio shipments amounts to nearly $355 million more dollars per year — nearly $4.5 billion in total from the time when tariffs were in effect to after they were reduced or eliminated,” said Tootelian.

    Data from the analysis estimated that more than 1.7 billion pounds of U.S. pistachios in total, or an average of more than 192 million pounds annually, may  have gone into storage if they were not diverted to other markets. While the effect of the projected added supply on the world market is unknown in terms of lower prices, Tootelian said that it would surely have had a detrimental impact on U.S. growers.

    “It is unknown what that would have done to the price,” he said. “In order to divert from storage and into other markets, prices probably would have had to come down considerably and whether they would have been able to market that much supply is an unknown.”

    Underlying Tootelian’s analysis is the fact that price is not the sole determinant of the volume of U.S. pistachio exports. He said when tariffs are lowered or eliminated, traditional economics would dictate that increased shipments would lead to lower prices, but his data show demand for U.S. pistachios in some key markets remained high in the post-tariff era.  Several factors, he said, appear to be in play.

    “One is the reputation of U.S. pistachios, which carries a very positive market image with consumers and importers. Second, it could be the quality of the product is better or more consistent, or both, for what consumers can buy from other countries,” said Tootelian. “And third, there are a lot of reputable health studies that show nuts are healthy and nutritious.  APG has invested considerable resources raising consumer awareness of the healthful attributes of pistachios, and consumers appear to be willing to pay a higher price. That is pretty clear from the data.”

    APG has aggressively worked in the halls of Congress, with U.S. trade officials and with foreign governmental bodies to alleviate burdensome trade barriers and create a more open market for U.S-grown pistachios.

    “Quantifying the value of APG’s efforts to growers has been difficult up to now, but this new study gives us some tangible answers to the importance of the work we are doing on behalf of the U.S. pistachio industry,” said Richard Matoian, APG’s executive director. “Frankly, we were quite surprised at the magnitude of these numbers.  It’s our strong belief that whenever and wherever trade barriers exist to the free flow of American-grown pistachios around the world, we will confront them vigorously.”

    In a postscript to his analysis, Tootelian added, “If I were a grower, I would be encouraging APG to be doing this more in other markets because the greater the demand there is for the product, the less goes into storage and that helps boost the price.”

  • Dairy Business Innovation Grant Through USDA Farm Bill

    Although the 2018 Farm Bill did not solve all of agriculture’s economic problems, there was one specific provision providing funds to improve US dairy marketing that producers should know about and may apply for.  Watch this brief interview with Dana Coale from the USDA Agricultural Marketing Service for more details.

  • Agricultural Leaders Announce Support For USMCA

    Agricultural leaders around the Central Valley announced their support for the United States-Mexico-Canada Trade Agreement, referred to as the USMCA and call upon Congress to act quickly and to vote on the agreement.  The USMCA would replace the 1994 North American Free Trade Agreement (NAFTA) and offers Agricultural more opportunities.

    The Agricultural Industry plays a vital role in California’s economy. California produces and grows the safest food in the world. In 2017 – 2018, 77,100 farms and ranches in the state, received a total of $50.13 billion for their commodities. Agricultural exports in 2017 were $16.8 billion to Canada and $26.8 billion to Mexico for a total of $43.6 billion.

    The ability to export, assures California will continue to remain the leading state in our nation for agricultural commodities.  The USMCA would continue to expand our exports into both Mexico and Canada, which would ensure more economic growth in California, providing more jobs and resources to our state.

    We believe that the USMCA would better serve the interests of American workers, businesses, farmers, ranchers and would help us continue our long-term good relationships with both Canada and Mexico.

    It is important for our California Congressional members to stand with our industry and encourage Congress to vote before summer recess and pass the USMCA.

    Signed by the following organizations:

    Nisei Farmers League, African-American Farmers of California, Tulare County Farm Bureau, California Apple Commission, California Blueberry Commission, Olive Growers Council of California, Stanislaus County Farm Bureau, Milk Producers Council, Merced County Farm Bureau

  • Turkey On Track to Become Top Dried Fruits and Nuts Exporter to the United States

    Since the beginning of time, Turkey has been the bountiful source of countless different plants and fruits. The warm sunshine, fertile lands and attentive hands of local farmers produce zesty, nutritious and high-quality food products, both fresh and naturally sun-dried. And, according to recent data, Turkey is on track again to become one of the top dried fruits and nuts exporters to the United States this year.

    More than half of world’s dried figs are produced in Turkey and exported to over 150 countries. Almost two-thirds of the dried figs that are exported are Turkish dried figs with top export markets including European Union countries, the United States and the Russian Federation. In 2018, the U.S spent $47.2 million to import 11,472. ton dried figs. 8,640-ton dried figs dried figs, or 75 percent of those dried figs, were from Turkey.

    Turkey is also the number one dried apricot exporter to the U.S. with 12,755 ton and $41.5 million spent in 2018. In that same year, the U.S. imported a total of 13,970 ton dried apricot worth $44.9 million. Interestingly, more than 90 percent of Turkish apricots are produced in the Malatya province alone, also known as the world’s apricot
    capital.

    Turkey is among the top 10 raisin exporters to the U.S. with 11,172 ton and $2.8M in 2018, Last year, the U.S. imported a total 48,327-ton raisins worth $87.5 M. Turkey produces almost 25 percent of the world’s dried grapes.

    With hundreds of years of production and export heritage, Turkey has become the homeland of top-quality dried fruits and nuts.  Owing to high production figures this year, Turkey is on track to dominate the world market in this sector again in 2019. Thanks to its extreme capacity and flexibility to meet international demands, Turkey is primed to offer some of the world’s healthiest products with exquisite product taste and supreme quality.

     

  • Pizza Hut Now using 25% More Cheese in Support of the Dairy Industry

    Pizza Hut has been a great partner of our National dairy checkoff through DMI, and is now serving 25% more cheese on their pizzas — some great news to hear during national Dairy Month.  Watch this brief interview with DMI’s Vice President of Product Development, Nitin Joshi for more details.

  • Western Growers Statement on U.S. and Mexico Trade Deal

    In response to the deal reached by the U.S. and Mexico to avert the addition of five percent tariffs on all Mexican goods, Western Growers President and CEO Tom Nassif issued the following statement:

    “We are pleased that this potential impediment to trade between our two countries has been avoided. Mexico represents one of the largest export markets for U.S. agricultural goods, and any tit-for-tat escalation of tariffs would be devastating for American farmers, in particular given the current barriers to access to Chinese markets.

    “As significant as this deal is in maintaining our regular flow of trade with Mexico, it is equally critical in clearing the pathway for passage and implementation of the U.S.-Mexico-Canada Agreement (USMCA). Like NAFTA before it, the USMCA maintains zero-tariff treatment for all produce, a provision that led to the tripling of U.S. exports to Mexico over the past 25 years. Additionally, the USMCA contains favorable terms that will advance science-based sanitary and phytosanitary measures and strengthen Mexico’s labor standards.

    “With the threat of tariffs no longer standing in the way, as well as other early obstacles that have now been removed, the onus is on Congress to pass the USMCA, which we urge with the greatest expediency.”

     About Western Growers:

    Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California, Colorado and New Mexico. Our members and their workers provide half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. For generations we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook.

     

  • 2018 USDA California Almond Nursery Sales Report

    The primary objective of the California Almond Nursery Sales Survey is to estimate future almond acres based on the number of almond trees sold for new plantings. This report summarizes data supplied by California nurseries throughout the State who sold to almond growers for commercial plantings. Results from this survey will be used in conjunction with the Almond Acreage Survey to estimate the almond acres in California.

    Questionnaires were mailed to all known almond nurseries in California and responses were received from 7 out of 10 operations. The nurseries were asked to report the total number of almond trees sold for commercial plantings and the total number of Nonpareil variety sold. They were also asked to report the percent of trees sold for new almond orchards, for replanting an existing orchard, or to replace trees within an already existing almond orchard. The totals are only for those nurseries that reported. Acres planted were calculated using the reported number of trees sold, along with the trees per acre from the Almond Acreage Survey.

    Results

    There were at least 10.1 million almond trees sold by California nurseries since June 1, 2017. Based on the Almond Acreage Survey, plantings from 2014 to 2018 were used to calculate an average trees per acre of 130. This results in approximately 78,000 acres of almonds planted from June 2017 through May 2018. Roughly 36,000 of these acres were Nonpareils. Nearly 53 percent of the total trees sold (41,000 acres) are new almond orchard acres and 41 percent (32,000 acres) replaced existing almond orchards. The remaining trees sold replaced trees within existing almond orchards.

    Acknowledgments

    The USDA, NASS Pacific Regional Office sincerely appreciates the nurseries for providing the information. A special thanks is due to the Almond Board of California for providing funding and support for this special Almond Nursery Sales Survey.
    Almond Nursery Sales Survey
    Almond Nursery Sales Survey Chart

  • CAWG Statement on Passing of $19.1 Billion Disaster Assistance Bill by House of Representatives

    SACRAMENTO, June 4, 2019 – California Association of Wine grape Growers (CAWG) President John Aguirre has issued the following statement:

    “In November 2018, in the wake of wildfires that devastated a number of California communities and prevented many growers from selling their 2018 wine grape crop, the California Association of Wine grape Growers (CAWG) and other California grower organizations asked Congress to assist in the recovery of adversely affected wine grape growers.

    “The House of Representatives on June 3 passed a disaster assistance bill that offers up to $19.1 billion to aid the recovery of communities, businesses and farmers across the country affected by hurricanes, flooding and wildfires. The bill, passed on a bipartisan 354 to 58 vote, includes $3.005 billion to fund payments for growers affected by a variety of natural disasters that occurred last year and more recently in 2019.

    CAWG-statement

    “With the bill’s passage and the expected signature of the president, California growers who experienced wildfire-related losses in 2018, including losses related to smoke exposure, will be able to apply for assistance payments from the Wildfire and Hurricane Indemnity Program (WHIP), which is administered by the U.S. Department of Agriculture’s (USDA) Farm Service Agency.

    “CAWG commends those members of the California congressional delegation who voted for the disaster assistance bill, particularly Rep. Mike Thompson (D-St. Helena), who worked hard to ensure WHIP would be available to assist California growers affected by smoke exposure-related losses.

    “CAWG also wishes to recognize and thank the following organizations that signed onto letters to Congress last November seeking assistance for growers affected by wildfires: Lake County Farm Bureau, Lake County Winegrape Commission, Mendocino County Farm Bureau and Mendocino Winegrowers, Inc.”

    Additional information:

    Press release from House Appropriations Committee (June 4)

    https://appropriations.house.gov/news/press-releases/house-passes-191-billion-bicameral-bipartisan-disaster-relief-package

    Summary of bill

    https://appropriations.house.gov/sites/democrats.appropriations.house.gov/files/Emergency%20Supplemental%20Summary.pdf

    Media contacts:

    • John Aguirre, (916) 379-8995, john@cawg.org
    • Meredith Ritchie, (916) 984-4473, meredith@cawg.org