USDA Secretary Tom Vilsack refutes GOP claims the Commodity Credit Corporation is a ‘slush fund’ for administration pet projects.

Vilsack told the National Farmers Unions’ annual convention, his GOP critics have it wrong on the $30 billion CCC, USDA’s financing institution.

“I get a kick out of our friends in Congress, they go, ‘it’s a slush fund, he’s just using it for whatever he wants to do.’ No, I don’t, I can’t do that, because I got lawyers, I got 230 some lawyers in the General Counsel’s office, who are scared to death, you don’t go into the guard rails. So, they’ll come to me and say, ‘Mr. Secretary, you can do this, and you can’t do this.’”

But Republicans see it differently--and not just with Democratic presidents. Senator Chuck Grassley blames Donald Trump for raiding CCC to offset China’s retaliation for his tariffs.

“Then, he found out it was hurting agriculture, so he just, willy nilly, takes 28 (B) billion dollars to give to the farmers to offset the bad impact that it has on American agriculture exports. I call that, a ‘slush fund.’”

Prompting Grassley and other Senate Republicans to introduce the USDA Spending Accountability Act and secure reporting requirements in the just enacted FY’24 Ag spending bill. But Vilsack argues the key example Republicans cite as CCC misuse, isn’t misuse, at all.

“So, when we did ‘climate-smart’ agriculture, we didn’t just simply say, ‘here’s money, go do sustainable practices,’ we said, ‘here’s money, go do sustainable practices and let’s create a new category of commodity, and let the market value that new category of commodity, because that’s the way you fit it into the CCC.”

Republicans agree that there are legitimate uses of CCC for farm subsidies and trade promotion but argue that even the Government Accountability Office has ruled that USDA should ask Congress first.

USDA Secretary Tom Vilsack refutes GOP claims the Commodity Credit Corporation is a ‘slush fund’ for administration pet projects.Vilsack told the National Farmers Unions’ annual convention, his GOP critics have it wrong on the $30 billion CCC, USDA’s financing institution.“I get a kick out of our friends in Congress, they go, ‘it’s a slush fund, he’s just using it for whatever he wants to do.’ No, I don’t, I can’t do that, because I got lawyers, I got 230 some lawyers in the General Counsel’s office, who are scared to death, you don’t go into the guard rails. So, they’ll come to me and say, ‘Mr. Secretary, you can do this, and you can’t do this.’”But Republicans see it differently--and not just with Democratic presidents. Senator Chuck Grassley blames Donald Trump for raiding CCC to offset China’s retaliation for his tariffs.“Then, he found out it was hurting agriculture, so he just, willy nilly, takes 28 (B) billion dollars to give to the farmers to offset the bad impact that it has on American agriculture exports. I call that, a ‘slush fund.’”Prompting Grassley and other Senate Republicans to introduce the USDA Spending Accountability Act and secure reporting requirements in the just enacted FY’24 Ag spending bill. But Vilsack argues the key example Republicans cite as CCC misuse, isn’t misuse, at all.“So, when we did ‘climate-smart’ agriculture, we didn’t just simply say, ‘here’s money, go do sustainable practices,’ we said, ‘here’s money, go do sustainable practices and let’s create a new category of commodity, and let the market value that new category of commodity, because that’s the way you fit it into the CCC.”Republicans agree that there are legitimate uses of CCC for farm subsidies and trade promotion but argue that even the Government Accountability Office has ruled that USDA should ask Congress first.-NAFB

Vilsack Refutes CCC ‘Slush Fund’ Claim

Farm families from across the nation donated 31 million pounds of food and raised $425,879 to help fight hunger in 2023 through Farm Bureau’s “Harvest for All” program.

Combined, the monetary and food donations totaled the equivalent of 26 million meals. Now in its 22nd year, Harvest for All is spearheaded by members of Farm Bureau’s Young Farmers &amp; Ranchers program, but members of all ages from across the nation contribute to the effort.

AFBF’s YF&amp;R Committee Chair Kevin Lussier says, “Farm Bureau’s commitment to helping put food on the tables of those in need through Harvest for All remains strong.”

Florida Farm Bureau took top honors for donating the most food in 2023, 22 million pounds, while Michigan Farm Bureau took top honors for raising the most money in 2023, $222,000. In addition to raising food and funds, farmers and ranchers tallied 21,571 hours for local food insecurity efforts and other community service.

Farm families from across the nation donated 31 million pounds of food and raised $425,879 to help fight hunger in 2023 through Farm Bureau’s “Harvest for All” program.Combined, the monetary and food donations totaled the equivalent of 26 million meals. Now in its 22nd year, Harvest for All is spearheaded by members of Farm Bureau’s Young Farmers &amp; Ranchers program, but members of all ages from across the nation contribute to the effort.AFBF’s YF&amp;R Committee Chair Kevin Lussier says, “Farm Bureau’s commitment to helping put food on the tables of those in need through Harvest for All remains strong.”Florida Farm Bureau took top honors for donating the most food in 2023, 22 million pounds, while Michigan Farm Bureau took top honors for raising the most money in 2023, $222,000. In addition to raising food and funds, farmers and ranchers tallied 21,571 hours for local food insecurity efforts and other community service.-NAFB

Farm Bureau Fights Hunger Through Harvest for All Program

New data confirms Iowa is the top producer of hogs in the United States, with about $10.9 billion in cash receipts in 2022, according to USDA’s Economic Research Service.

Cash receipts represent the value of sales of hogs by farmers to processors or final users. Following Iowa are Minnesota, North Carolina, and Illinois, with cash receipts of $3.6 billion, $3.1 billion, and $2.1 billion, respectively. Iowa accounted for about 35.5 percent of the $30.6 billion in total U.S. cash receipts for hogs in 2022. The top ten hog-producing states cumulatively accounted for 87.6 percent of hog receipts.

In the latest Hogs and Pigs report from USDA, the National Agricultural Statistics Service indicated there were nearly 75 million hogs in the United States as of December 1, 2023. USDA’s Economic Research Service estimates farm sector cash receipts—the cash income received from agricultural commodity sales—three times each year.

New data confirms Iowa is the top producer of hogs in the United States, with about $10.9 billion in cash receipts in 2022, according to USDA’s Economic Research Service.Cash receipts represent the value of sales of hogs by farmers to processors or final users. Following Iowa are Minnesota, North Carolina, and Illinois, with cash receipts of $3.6 billion, $3.1 billion, and $2.1 billion, respectively. Iowa accounted for about 35.5 percent of the $30.6 billion in total U.S. cash receipts for hogs in 2022. The top ten hog-producing states cumulatively accounted for 87.6 percent of hog receipts.In the latest Hogs and Pigs report from USDA, the National Agricultural Statistics Service indicated there were nearly 75 million hogs in the United States as of December 1, 2023. USDA’s Economic Research Service estimates farm sector cash receipts—the cash income received from agricultural commodity sales—three times each year.-NAFB

USDA: Iowa leads States in Hog Production

Unit sales of 100+ horsepower ag tractors increased slightly in February 2024 in the U.S., according to new data from the Association of Equipment Manufacturers.

The month recorded an increase of 2.8 percent compared to February 2023. However, year-to-date data reflects sales below 2023 in total units of ag tractors and combines. Ag tractor sales dipped 14.2 percent, while combines finished under 18.9 percent. In Canada, combine sales jumped 27.2 percent in February 2024 compared to 2023, and are up a total of 6.3 percent year-to-date compared to last year. A total of 131 combines were sold in February, adding to the overall year-to-date sales of 255 units.

AEM's Curt Blades says, "The combine sales in Canada are a bright spot when we take a deeper look at February's performance," adding, "The uptick in sales of 100+ horsepower ag tractors in the U.S. also bodes well for the long-term strength of our industry moving forward."

Total ag tractor sales fell in Canada by 28.2% year-to-date compared to 2023.

Unit sales of 100+ horsepower ag tractors increased slightly in February 2024 in the U.S., according to new data from the Association of Equipment Manufacturers.The month recorded an increase of 2.8 percent compared to February 2023. However, year-to-date data reflects sales below 2023 in total units of ag tractors and combines. Ag tractor sales dipped 14.2 percent, while combines finished under 18.9 percent. In Canada, combine sales jumped 27.2 percent in February 2024 compared to 2023, and are up a total of 6.3 percent year-to-date compared to last year. A total of 131 combines were sold in February, adding to the overall year-to-date sales of 255 units.AEM's Curt Blades says, "The combine sales in Canada are a bright spot when we take a deeper look at February's performance," adding, "The uptick in sales of 100+ horsepower ag tractors in the U.S. also bodes well for the long-term strength of our industry moving forward."Total ag tractor sales fell in Canada by 28.2% year-to-date compared to 2023.-NAFB

Overall Tractor Sales Lower Compared to February 2023

In 2022, farm establishments received 24.1 cents for each dollar spent on food at home and 3.6 cents for each dollar spent on food away from home. These amounts, called farm shares, highlight the different paths that food takes from farms to consumers' points of purchase, according to USDA’s Economic Research Service.

Food-at-home dollars include food purchases from outlets such as grocery stores, supermarkets, and wholesale clubs that are meant to be prepared at home. Food-away-from-home dollars include food purchases at restaurants, including delivery and carry-out, and other venues where the food is eaten on the premises. The remainder of each food dollar makes up the marketing share, which is the total value of processing, transportation, retailing, and other activities that get food from farm operations to points of purchase for consumers.

In 2022, the marketing share was 75.9 cents per food-at-home dollar and 96.4 cents per food-away-from-home dollar.

In 2022, farm establishments received 24.1 cents for each dollar spent on food at home and 3.6 cents for each dollar spent on food away from home. These amounts, called farm shares, highlight the different paths that food takes from farms to consumers' points of purchase, according to USDA’s Economic Research Service.Food-at-home dollars include food purchases from outlets such as grocery stores, supermarkets, and wholesale clubs that are meant to be prepared at home. Food-away-from-home dollars include food purchases at restaurants, including delivery and carry-out, and other venues where the food is eaten on the premises. The remainder of each food dollar makes up the marketing share, which is the total value of processing, transportation, retailing, and other activities that get food from farm operations to points of purchase for consumers.In 2022, the marketing share was 75.9 cents per food-at-home dollar and 96.4 cents per food-away-from-home dollar.-NAFB

Farms Received Nearly a Quarter of Each Food-at-home Dollar in 2022

The USDA spending bill President Biden just signed for the rest of this fiscal year limits the Ag Secretary’s discretion in spending funds from the Commodity Credit Corporation—USDA’s financing institution.

The Ag spending bill requires the Secretary to give Congress 15-days’ notice and spending details before transferring $100 million or more from the CCC.

The provision is based on the earlier “USDA Spending Accountability Act,” led by Republican Senators Roger Marshall, Mike Braun and Iowa’s Chuck Grassley.

“We should not have a slush fund that is outside of the appropriation process, that doesn’t give Congress control of the purse strings.”

Republicans charge the CCC’s been used for politically-driven pet projects. But Secretary Tom Vilsack sees it differently.

“The ARC payments and the PLC payments and the CRP payments, all come from the Commodity Credit Corporation. So, they’ve done it in the past.”

Citing legitimate CCC use to fund farm bills.. And Senate Ag Chair Debbie Stabenow pointed to Vilsack’s earlier ok of a bipartisan request to use CCC funds for trade promotion.

“A large part of that is already the way we fund the farm bill. So, it’s not that there’s additional.”

And the earlier GOP bill would use half its $8 billion estimated ten-year savings for market development and research, the other half for deficit reduction.

But Republicans criticize the CCC’s use for climate programs and other Democratic priorities and say even the Government Accountability Office has ruled USDA should have asked Congress first.

The USDA spending bill President Biden just signed for the rest of this fiscal year limits the Ag Secretary’s discretion in spending funds from the Commodity Credit Corporation—USDA’s financing institution.The Ag spending bill requires the Secretary to give Congress 15-days’ notice and spending details before transferring $100 million or more from the CCC.The provision is based on the earlier “USDA Spending Accountability Act,” led by Republican Senators Roger Marshall, Mike Braun and Iowa’s Chuck Grassley.“We should not have a slush fund that is outside of the appropriation process, that doesn’t give Congress control of the purse strings.”Republicans charge the CCC’s been used for politically-driven pet projects. But Secretary Tom Vilsack sees it differently.“The ARC payments and the PLC payments and the CRP payments, all come from the Commodity Credit Corporation. So, they’ve done it in the past.”Citing legitimate CCC use to fund farm bills.. And Senate Ag Chair Debbie Stabenow pointed to Vilsack’s earlier ok of a bipartisan request to use CCC funds for trade promotion.“A large part of that is already the way we fund the farm bill. So, it’s not that there’s additional.”And the earlier GOP bill would use half its $8 billion estimated ten-year savings for market development and research, the other half for deficit reduction.But Republicans criticize the CCC’s use for climate programs and other Democratic priorities and say even the Government Accountability Office has ruled USDA should have asked Congress first.-NAFB

Ag Secretary’s CCC Spending Discretion Limited in Approps Bill

The United States Cattlemen's Association calls USDA's final voluntary 'Product of USA' rule a victory. Agriculture Secretary Tom Vilsack announced the rule Monday at the National Farmers Union annual convention.

USCA has worked tirelessly to clarify years of confusion at the consumer level regarding the labeling of U.S. beef products. Starting in 2017, USCA's Director Emeritus Leo McDonnell led a nationwide fundraising effort of cattle producers nationwide that initiated federal rulemaking to close the loophole created by the 2015 repeal of mandatory country-of-origin labeling.

The final rule announced yesterday follows a request made by the USCA in a petition for rulemaking submitted to USDA's Food Safety and Inspection Service in 2019.

McDonnel stated, "This announcement takes the necessary steps to bring back truth in labeling." USCA President Justin Tupper added, "USCA is thrilled that the final rule finally closes this loophole by accurately defining what these voluntary origin claims mean.

The United States Cattlemen's Association calls USDA's final voluntary 'Product of USA' rule a victory. Agriculture Secretary Tom Vilsack announced the rule Monday at the National Farmers Union annual convention.USCA has worked tirelessly to clarify years of confusion at the consumer level regarding the labeling of U.S. beef products. Starting in 2017, USCA's Director Emeritus Leo McDonnell led a nationwide fundraising effort of cattle producers nationwide that initiated federal rulemaking to close the loophole created by the 2015 repeal of mandatory country-of-origin labeling.The final rule announced yesterday follows a request made by the USCA in a petition for rulemaking submitted to USDA's Food Safety and Inspection Service in 2019.McDonnel stated, "This announcement takes the necessary steps to bring back truth in labeling." USCA President Justin Tupper added, "USCA is thrilled that the final rule finally closes this loophole by accurately defining what these voluntary origin claims mean.-NAFB

USCA Calls Product of USA Rule a Victory

Agriculture Secretary Tom Vilsack Tuesday announced funding for high speed internet and drinking water systems for tribal communities.

The Department of Agriculture is investing $58 million in Tribal communities in Nevada, Oklahoma and South Dakota. The funding will support economic development, high-speed internet deployment and modern infrastructure. The projects are being financed through the ReConnect Program and the Water and Waste Facility Loans and Grants to Alleviate Health Risks on Tribal Lands Program.

Vilsack says, “USDA is committed to building our economy from the middle out and bottom-up by bringing high-speed internet, clean water and critical infrastructure to people in small towns and communities everywhere."

Vilsack made the announcement at one of the nation's largest Tribal economic development conferences, the National Center for American Indian Enterprise Development's Reservation Economic Summit in Las Vegas, Nevada. Investments in the announcement were made possible by various USDA Rural Development programs.

Agriculture Secretary Tom Vilsack Tuesday announced funding for high speed internet and drinking water systems for tribal communities.The Department of Agriculture is investing $58 million in Tribal communities in Nevada, Oklahoma and South Dakota. The funding will support economic development, high-speed internet deployment and modern infrastructure. The projects are being financed through the ReConnect Program and the Water and Waste Facility Loans and Grants to Alleviate Health Risks on Tribal Lands Program.Vilsack says, “USDA is committed to building our economy from the middle out and bottom-up by bringing high-speed internet, clean water and critical infrastructure to people in small towns and communities everywhere."Vilsack made the announcement at one of the nation's largest Tribal economic development conferences, the National Center for American Indian Enterprise Development's Reservation Economic Summit in Las Vegas, Nevada. Investments in the announcement were made possible by various USDA Rural Development programs.-NAFB

Vilsack Announces Broadband, Drinking Water Investments

Grocery prices held steady in the latest Consumer Price Index by the Department of Labor.

While food prices stayed flat, the overall index increased .4 percent, following a .3 percent increase in January. Three of the six major grocery store food group indexes decreased over the month. The index for dairy and related products decreased 0.6 percent in February, led by a 1.1 percent decline in the index for cheese and related products.

The fruits and vegetables index decreased 0.2 percent over the month, as did the nonalcoholic beverages index. The cereals and bakery products index rose 0.5 percent in February, following a 0.2 percent decrease in January. The meats, poultry, fish, and eggs index also increased over the month, rising 0.1 percent. The index for other food at home was unchanged over the month.

The food away from home index rose 0.1 percent in February after rising 0.5 percent in January.

Grocery prices held steady in the latest Consumer Price Index by the Department of Labor.While food prices stayed flat, the overall index increased .4 percent, following a .3 percent increase in January. Three of the six major grocery store food group indexes decreased over the month. The index for dairy and related products decreased 0.6 percent in February, led by a 1.1 percent decline in the index for cheese and related products.The fruits and vegetables index decreased 0.2 percent over the month, as did the nonalcoholic beverages index. The cereals and bakery products index rose 0.5 percent in February, following a 0.2 percent decrease in January. The meats, poultry, fish, and eggs index also increased over the month, rising 0.1 percent. The index for other food at home was unchanged over the month.The food away from home index rose 0.1 percent in February after rising 0.5 percent in January.-NAFB

February Grocery Prices Unchanged

USDA Secretary Vilsack announced final voluntary USDA meat labeling rules and new local meat grants at National Farmers Union’s annual convention.

Vilsack says the rule won the support of thousands of stakeholders and consumers and will take effect later, while regulatory labeling guidance takes effect January 1, 2026.

“We are now on record as being for the utilization of that label only, only, when the animal is born, raised, slaughtered and processed in the U.S.”

The “Product of USA” or “Made in the USA” label claim under the rule would not need to be pre-approved by USDA’s Food Safety and Inspection Service. But an establishment would have to keep documentation on file to support the claim.

Separately, Vilsack announced USDA will award $9.5 million in equipment grants to 42 projects through its Local Meat Capacity or MCap program

“The purpose of this program is to not only expand and diversify meat and poultry processing that are producer owned, but to create jobs in rural places, to create consumer choice, and also to create competition and resiliency.”

The Agricultural Marketing Service will make the grants with American Rescue Plan funds…the first set of awards going to projects in 27 states and Puerto Rico.

And AMS will take new steps to boost transparency and competition in the US seed industry through its Farmer Seed Liaison Initiative…and a nationwide Website Monitoring Program to review Seed Act brand and variety name compliance.

USDA Secretary Vilsack announced final voluntary USDA meat labeling rules and new local meat grants at National Farmers Union’s annual convention.Vilsack says the rule won the support of thousands of stakeholders and consumers and will take effect later, while regulatory labeling guidance takes effect January 1, 2026.“We are now on record as being for the utilization of that label only, only, when the animal is born, raised, slaughtered and processed in the U.S.”The “Product of USA” or “Made in the USA” label claim under the rule would not need to be pre-approved by USDA’s Food Safety and Inspection Service. But an establishment would have to keep documentation on file to support the claim.Separately, Vilsack announced USDA will award $9.5 million in equipment grants to 42 projects through its Local Meat Capacity or MCap program“The purpose of this program is to not only expand and diversify meat and poultry processing that are producer owned, but to create jobs in rural places, to create consumer choice, and also to create competition and resiliency.”The Agricultural Marketing Service will make the grants with American Rescue Plan funds…the first set of awards going to projects in 27 states and Puerto Rico.And AMS will take new steps to boost transparency and competition in the US seed industry through its Farmer Seed Liaison Initiative…and a nationwide Website Monitoring Program to review Seed Act brand and variety name compliance.-NAFB

Vilsack Announces Final Voluntary USA Label, Local Meat Grants

New data from USDA Economic Research Service shows that changes in drought conditions impact the size of the U.S. beef cattle herd.

Specifically, when the percentage of land area of drought increases for an extended period as noted in the U.S. Drought Monitor, the U.S. beef cattle herd often declines. In 2023, with more than 65 percent of U.S. land area in drought, the U.S. beef cattle herd declined roughly 2.5 percent. When drought conditions diminish forage production and availability, beef cattle producers often must buy supplemental feed and forage or reduce their herd size.

Periods of more intense drought are associated with decreases in the U.S. beef cattle herd size, such as when the national beef cattle herd shrank about one to two percent a year during drought between 2011 and 2015. Other factors outside of drought conditions also influence changes in the beef cattle herd size, including feed and forage prices, extreme precipitation events, supply chain issues, and the natural life cycles of livestock.

New data from USDA Economic Research Service shows that changes in drought conditions impact the size of the U.S. beef cattle herd.Specifically, when the percentage of land area of drought increases for an extended period as noted in the U.S. Drought Monitor, the U.S. beef cattle herd often declines. In 2023, with more than 65 percent of U.S. land area in drought, the U.S. beef cattle herd declined roughly 2.5 percent. When drought conditions diminish forage production and availability, beef cattle producers often must buy supplemental feed and forage or reduce their herd size.Periods of more intense drought are associated with decreases in the U.S. beef cattle herd size, such as when the national beef cattle herd shrank about one to two percent a year during drought between 2011 and 2015. Other factors outside of drought conditions also influence changes in the beef cattle herd size, including feed and forage prices, extreme precipitation events, supply chain issues, and the natural life cycles of livestock.-NAFB

Drought Conditions Influence Fluctuations in Beef Cattle Herd

The nation’s average gas price is inching towards its year-ago level while diesel fell in the last week.

GasBuddy reports the nation’s average price of gasoline increased 6.2 cents from a week ago to $3.40 per gallon. The national average is up 23.0 cents from a month ago and 4.5 cents per gallon lower than a year ago. The national average price fell 1.3 cents in the last week and stands at $4.02 per gallon—30 cents lower than one year ago.

GasBuddy’s Patrick De Haan says, “Much of the seasonal rise that happens this time of year is a culmination of refinery maintenance, the switch to summer gasoline, and rising demand.”

However, if refineries continue to boost output of products like gasoline, diesel, and jet fuel, it could mean earlier-than-expected relief. De Haan says the changeover is still in process, so the nation will likely see the continuation of upward pressure on prices, for now.

The nation’s average gas price is inching towards its year-ago level while diesel fell in the last week.GasBuddy reports the nation’s average price of gasoline increased 6.2 cents from a week ago to $3.40 per gallon. The national average is up 23.0 cents from a month ago and 4.5 cents per gallon lower than a year ago. The national average price fell 1.3 cents in the last week and stands at $4.02 per gallon—30 cents lower than one year ago.GasBuddy’s Patrick De Haan says, “Much of the seasonal rise that happens this time of year is a culmination of refinery maintenance, the switch to summer gasoline, and rising demand.”However, if refineries continue to boost output of products like gasoline, diesel, and jet fuel, it could mean earlier-than-expected relief. De Haan says the changeover is still in process, so the nation will likely see the continuation of upward pressure on prices, for now.-NAFB

Gas Prices Inch Higher, Diesel Lower

Farmers not yet enrolled in the Agriculture Risk Coverage or Price Loss Coverage programs for the 2024 crop year have until March 15, 2024, to revise elections and sign contracts.

Both safety net programs, delivered by USDA’s Farm Service Agency, support to farmers who experience substantial declines in crop prices or revenues for the 2024 crop year. Producers can elect coverage and enroll in ARC-County or PLC, which provide crop-by-crop protection, or ARC-Individual, which protects the entire farm.

Although election changes for 2024 are optional, producers must enroll, with a signed contract, each year. If a producer has a multi-year contract on the farm, the contract will continue for 2024 unless an election change is made. If producers do not submit their election revision by the March 15, 2024, deadline, the election remains the same as their 2023 election for eligible commodities on the farm.

For more information on ARC and PLC, contact your local USDA Service Center.

Farmers not yet enrolled in the Agriculture Risk Coverage or Price Loss Coverage programs for the 2024 crop year have until March 15, 2024, to revise elections and sign contracts.Both safety net programs, delivered by USDA’s Farm Service Agency, support to farmers who experience substantial declines in crop prices or revenues for the 2024 crop year. Producers can elect coverage and enroll in ARC-County or PLC, which provide crop-by-crop protection, or ARC-Individual, which protects the entire farm.Although election changes for 2024 are optional, producers must enroll, with a signed contract, each year. If a producer has a multi-year contract on the farm, the contract will continue for 2024 unless an election change is made. If producers do not submit their election revision by the March 15, 2024, deadline, the election remains the same as their 2023 election for eligible commodities on the farm.For more information on ARC and PLC, contact your local USDA Service Center.-NAFB

Crop Insurance Deadline Nears

Agriculture Secretary Tom Vilsack Monday announced the finalization of a rule to align the voluntary “Product of USA” label claim with consumer understanding of what the claim means. Vilsack made the announcement during a speech to attendees of the National Farmers Union Annual Convention in Scottdale, Arizona.

Vilsack says, “This final rule will ensure that when consumers see ‘Product of USA’ they can trust the authenticity of that label and know that every step involved.”

USDA’s final rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. The rule will prohibit misleading U.S. origin labeling in the market, and help ensure that the information consumers receive about where their food comes from is truthful.

Establishments voluntarily using a claim subject to the final rule must comply with the new regulatory requirements by January 1, 2026.

Agriculture Secretary Tom Vilsack Monday announced the finalization of a rule to align the voluntary “Product of USA” label claim with consumer understanding of what the claim means. Vilsack made the announcement during a speech to attendees of the National Farmers Union Annual Convention in Scottdale, Arizona.Vilsack says, “This final rule will ensure that when consumers see ‘Product of USA’ they can trust the authenticity of that label and know that every step involved.”USDA’s final rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. The rule will prohibit misleading U.S. origin labeling in the market, and help ensure that the information consumers receive about where their food comes from is truthful.Establishments voluntarily using a claim subject to the final rule must comply with the new regulatory requirements by January 1, 2026.-NAFB

USDA Finalizes “Product of USA” Label Claim

Applications are open for the Angus Foundation’s Commercial Cattlemen Scholarship, which awards four $1,500 scholarships to outstanding young people in the beef industry. This scholarship is unique from others offered by the Foundation as it aims to support students specifically from the commercial sector of the industry.

“We’re proud to offer this scholarship opportunity to students from commercial cattle backgrounds,” says Jaclyn Boester, Angus Foundation executive director. “We recognize the importance of supporting young people using Angus genetics and want to help them succeed in our industry.”

Students should be pursuing an undergraduate or vocational degree at an accredited higher education institution, and selection emphasis is placed on the applicant’s knowledge of the cattle industry and their perspective on the Angus breed. Young men and women are eligible to receive the scholarship if they’ve transferred a registered Angus animal in or out of their herd in the last three years.

Applications are open for the Angus Foundation’s Commercial Cattlemen Scholarship, which awards four $1,500 scholarships to outstanding young people in the beef industry. This scholarship is unique from others offered by the Foundation as it aims to support students specifically from the commercial sector of the industry.“We’re proud to offer this scholarship opportunity to students from commercial cattle backgrounds,” says Jaclyn Boester, Angus Foundation executive director. “We recognize the importance of supporting young people using Angus genetics and want to help them succeed in our industry.”Students should be pursuing an undergraduate or vocational degree at an accredited higher education institution, and selection emphasis is placed on the applicant’s knowledge of the cattle industry and their perspective on the Angus breed. Young men and women are eligible to receive the scholarship if they’ve transferred a registered Angus animal in or out of their herd in the last three years.-NAFB

Applications Open for Angus Foundation Scholarship

There are 15 million dollars in the just-passed FY 2024 USDA spending bill to help cattle producers equip their animals with electronic ID tags, a key to limiting disease outbreaks.

Former head of the National Cattlemen’s Beef Association Todd Wilkinson says the EID funds will go a long way toward improving cattle traceability and reducing the financial burden on producers.

“So, the fact that we have 15 million dollars coming through the appropriations side is a major win.”

And it’s a win for limiting the possibly devastating impact on the cattle industry from a disease like foot and mouth.

“If that comes into the United States, the current plan is to shut the entire country down for a minimum of 72 hours. And it’s probably going to go a lot longer than that.”

But Wilkinson, a South Dakota cattle producer, says electronic tags speed up traceability reporting between states, thereby limiting those shutdowns in unaffected areas. And to those producers who don’t want to bother with electronic tags.

“All of us have to just think back to the BSE and other situations. Look at our friends in the poultry business. Look at what pork is facing. If we don’t think an animal disease is going to come into this country, as porous as our borders are, and impact our producers, you’re burying your head in the sand.”

Wilkinson refutes concerns electronic tracking will divulge producer information publicly and argues without better traceability, industry losses to disease outbreaks won’t be in the millions of dollars, but billions of dollars.

There are 15 million dollars in the just-passed FY 2024 USDA spending bill to help cattle producers equip their animals with electronic ID tags, a key to limiting disease outbreaks.Former head of the National Cattlemen’s Beef Association Todd Wilkinson says the EID funds will go a long way toward improving cattle traceability and reducing the financial burden on producers.“So, the fact that we have 15 million dollars coming through the appropriations side is a major win.”And it’s a win for limiting the possibly devastating impact on the cattle industry from a disease like foot and mouth.“If that comes into the United States, the current plan is to shut the entire country down for a minimum of 72 hours. And it’s probably going to go a lot longer than that.”But Wilkinson, a South Dakota cattle producer, says electronic tags speed up traceability reporting between states, thereby limiting those shutdowns in unaffected areas. And to those producers who don’t want to bother with electronic tags.“All of us have to just think back to the BSE and other situations. Look at our friends in the poultry business. Look at what pork is facing. If we don’t think an animal disease is going to come into this country, as porous as our borders are, and impact our producers, you’re burying your head in the sand.”Wilkinson refutes concerns electronic tracking will divulge producer information publicly and argues without better traceability, industry losses to disease outbreaks won’t be in the millions of dollars, but billions of dollars.-NAFB

Cattle Producers Get Help With Electronic ID Tags in USDA Spending Bill

The March World Ag Supply and Demand Estimates Report looked very similar to February’s numbers This month’s 2023-2024 U.S. corn outlook is unchanged relative to last month.

The season-average corn price received by producers is lowered to $4.75 a bushel based on observed prices to date. The outlook for U.S. soybean supply and use for 2023-2024 is also unchanged this month. Higher soybean meal exports are mostly offset by lower domestic use. The season-average soybean price and soybean meal price forecasts are also unchanged from last month.

The outlook for 2023-2024 U.S. wheat this month calls for unchanged supplies and domestic use, lower exports, and higher ending stocks. Exports were reduced by 15 million bushels to 710 million. Ending stocks were raised by the same amount to 673 million bushels and are 18 percent higher than last year. The season-average wheat price dropped by five cents to $7.15 a bushel.

The March World Ag Supply and Demand Estimates Report looked very similar to February’s numbers This month’s 2023-2024 U.S. corn outlook is unchanged relative to last month.The season-average corn price received by producers is lowered to $4.75 a bushel based on observed prices to date. The outlook for U.S. soybean supply and use for 2023-2024 is also unchanged this month. Higher soybean meal exports are mostly offset by lower domestic use. The season-average soybean price and soybean meal price forecasts are also unchanged from last month.The outlook for 2023-2024 U.S. wheat this month calls for unchanged supplies and domestic use, lower exports, and higher ending stocks. Exports were reduced by 15 million bushels to 710 million. Ending stocks were raised by the same amount to 673 million bushels and are 18 percent higher than last year. The season-average wheat price dropped by five cents to $7.15 a bushel.-NAFB

March WASDE Shows Few Major Changes

Despite publicly declaring years ago to not sell certain pork products in California, some companies that own major meatpacking plants have signed up to do just that

BY:&nbsp;<a href="https://missouriindependent.com/author/johnmccracken/">JOHN MCCRACKEN</a>&nbsp;AND&nbsp;<a href="https://missouriindependent.com/author/benfelder/">BEN FELDER</a>

In 2021, two years before California enacted new hog confinement standards for pork to be sold within its borders, Seaboard Foods said it would “no longer sell certain whole pork products” in the state.

Passed in 2018, California’s Farm Animal Confinement Initiative, often referred to as Proposition 12, required pork producers to give sows, or mother pigs, at least 24 square feet of space per animal.

Nearly 5% of Seaboard’s 7 million hogs produced each year are sold in California but the company said the coming Prop 12 standards would significantly decline how much business it would do moving forward in the nation’s most populous state.

But when the new standards went into effect on Jan. 1, 2024, Seaboard was listed as a Prop 12-compliant distributor with the California Department of Food and Agriculture.

“In our connected food system, our farms raise market hogs born from sows in various housing types based on customer requirements, including … for Prop 12 group housing compliant for California,” David Eaheart, a spokesperson for Seaboard, told Investigate Midwest when asked about the company continuing to sell into California. “Because of this, we can flex between different sow housing requirements to produce pork products based on customer demand.”

Seaboard did not say how its business this year compares to years past. But it’s an example of how many of the nation’s largest pork producers, who once said the new standards would limit or end their business in California, are adapting to the new standards.

Investigate Midwest reviewed financial statements from more than a dozen of the largest pork-producing corporations and California’s new Prop 12 pork distribution lists, along with speaking to several hog farmers to better understand the impact Proposition 12 is having on their industry.

Two months into the new Prop 12 standards, the picture that emerged is one where the nation’s largest pork producers are largely adapting to the new rules in an effort to continue sales in a state that consumes about 15% of the nation’s pork, the highest rate in the nation, according to&nbsp;<a target="_blank" href="https://nppc.org/press-releases/supreme-court-to-hear-nppc-case-against-prop-12/">consumption estimates from the National Pork Producers Council</a>.&nbsp;&nbsp;&nbsp;

The Biden administration is also concerned that Prop 12 could create a 50-state patchwork of legislation for hog producers.

In 2022, the administration asked the Supreme Court to strike down California’s animal confinement legislation.

At a February Senate Agriculture, Nutrition, and Forestry Committee hearing, U.S. Department of Agriculture Secretary Tom Vilsack said he supported the federal government stepping in to clarify these regulations.

“Farmers don’t need the chaos,” Vilsack said. “They need clarity and certainty.”

While many of America’s largest pork producers and distributors have said they plan to comply with the new law, some have blamed the additional hurdles for recent plant closures and layoffs. More than 230 out-of-state distributors already have been licensed to sell pork in California by the state’s Department of Food and Agriculture, according to the agency’s latest registered distribution list.

Some local hog farmers with compliant pens have found an opportunity to sell into a new competitive market, while those with non-compliant operations have balked at the new standards, claiming it would be too expensive to comply with or is against their principles.

“I don’t like California telling me (that) to be able to sell in this state, I have to raise these pigs this way,” said AV Roth, who owns a 3,000-sow farm in Wisconsin.

Roth, who is also vice president of the Wisconsin Pork Association, said none of his hogs will ever go to California because he’s against another state regulating his business. His sows are housed in 14-square-foot gestation crates.

“If they want to tell their farmers in California how to raise pigs that’s totally fine by me, but this is the great country of the United States and I should be able to sell in all 50 states,” Roth said.

Dan Sumner, a professor of agriculture economics at UC-Davis, said that sentiment is common among many hog farmers.

“Frankly, a bunch of know-nothing Californians who’ve never been on a hog operation think they can tell these guys what’s better for their pigs,” Sumner said. “If I was a hog farmer I’d be pissed off. It’s just insulting.”

Anti-Prop 12 groups, including the National Pork Producers Council, claim hog farmers would have to spend $3,500 per sow to become compliant. The council, along with the American Farm Bureau, has vowed to continue pursuing legal and legislative avenues to overturn Prop 12.

But animal welfare organizations have called the cost estimates overblown and said new confinement standards are the ethical thing to do.

“I don’t think anyone needs to be a rocket scientist to understand that having space to lie down and stretch your legs is necessary for mental and physical well-being,” said Allison Molinaro, U.S. campaigns manager for the nonprofit organization Compassion in World Farming. “Living in a gestation crate is like having a human live in a telephone booth.”

California is the nation’s largest consumer of pork products but pinpointing exactly where the state’s pork supply comes from is not clear.

According to the California Department of Food and Agriculture, before Prop 12, no public data tracked how much pork comes from specific states or companies. To see which states could be impacted the most by Prop 12, Investigate Midwest analyzed U.S. Department of Agriculture data to locate where most baby pigs are born.

Iowa, North Carolina, Illinois, Minnesota and Missouri had the most pigs born in the country from 2013 to 2023, accounting for roughly half of the nation’s pork supply.

Local chapters of the National Pork Producers Council located in these major states declined multiple requests to comment, but economist Steve Meyer, a consultant with the National Pork Producer Council, told&nbsp;<a target="_blank" href="https://www.desmoinesregister.com/story/money/agriculture/2023/06/07/californias-prop-12-comes-as-iowa-pork-producers-face-mounting-losses/70249889007/">the Des Moines Register</a>&nbsp;in 2022 that less than half the pork sent to California met Prop 12 standards, at that time.

In January, Meyer told Investigate Midwest he estimates there still isn’t enough compliant pork supply in the U.S. to meet demand based on what California consumers have eaten in the past.

While there aren’t available data points to support this claim, Meyer said he was confident the nation is short roughly 250,000 complaint sows to meet California’s historic demand, which would lead to either a price increase or a lack in availability for cuts of pork.

“I believe the covered products are in short supply, and California consumers are substituting exempt pork products and other proteins,” Meyers said.

Premade pork products are exempt from Prop 12 standards, including sliced ham, salami and deli meat.

Most of the nation’s major pork producers have taken steps to become compliant with the new California law, some starting the transition more than a decade ago.

Smithfield Foods, the nation’s largest pork producer and owner of some 885,000 sows, has spent years transitioning to group housing that meets the standards of Proposition 12.

The company owns more than 400 pork production farms in Colorado, Idaho, Illinois, Missouri, North Carolina, Oklahoma, South Carolina, Utah and Virginia, according to Smithfield spokesperson Ray Atkinson. According to the company’s 2021 Sustainability Report, all of the company-owned farms are compliant with large, group housing for sows.

The company contracts out pork production to more than 2,000 contract farmers across the county, and information about the compliance of these farms was not made available.

“We have established supply agreements for Prop 12-compliant pork and will continue to engage customers to expand the availability of compliant products,” Atkinson said in an email.

Still, the company has openly complained about the new Prop 12 standards, and said it was one reason it recently&nbsp;<a target="_blank" href="https://www.cbsnews.com/losangeles/news/farmer-john-meatpacking-plant-in-vernon-to-close-in-2023-due-to-escalating-costs/">closed meatpacking plants in California</a>.

Atkinson said Smithfield continues to sell into California but its sales numbers are confidential.

“We fully support a federal legislative solution that will resolve a growing patchwork of state-by-state regulations that make it increasingly difficult to keep food affordable,” Atkinson said.

Other major pork producers and grocery chains have said they are compliant with Prop 12 as of the beginning of 2024:

While California is the largest pork-consuming state in the U.S., a growing amount of the nation’s pork is being sent overseas, lessening the impact of Prop 12 on many large producers.

Until 1995, less than 5% of American pork production was exported. Today, 27% of U.S. pork is exported, a higher rate than beef or poultry.

There were some concerns that Prop 12 could have an impact on exports because much of America’s pork destined for Asia passes through California ports. But several weeks into Prop 12, export officials said they haven’t seen any problems.

“The bottom line is that so far exports transiting California for shipment out of the West Coast ports seem to be flowing smoothly,” John Herath, a spokesperson for the U.S. Meat Export Federation, told Investigate Midwest.

Pork industry says it will continue to fight Prop 12

National agriculture groups and major pork producers originally hoped a legal challenge would end Prop 12 before it ever started. But the American Farm Bureau and the National Pork Producers Council’s lawsuit was struck down by the U.S. Supreme Court, where a 5-4 ruling last year upheld the law.

Despite the loss, the groups said they continue to look for ways to overturn Prop 12.

“If we are going to have a patchwork of 50 different rules, that is going to make it very difficult … to produce livestock efficiently in this country,” Jack Irvin, vice president of public policy for the Ohio Farm Bureau, said from the American Farm Bureau’s national convention in Salt Lake City in January.

Prop 12 was a major discussion topic at the convention, Irvin said, where members passed a resolution asking the farm bureau to continue its opposition against the measure, including pushing for a federal law banning state-level confinement standards.

But opponents of a federal law banning Prop 12 claim it would create further chaos.

The Ending Agricultural Trade Suppression Act, also known as the EATS Act, is a proposal in Congress that would prevent states from enacting laws similar to Prop 12. But a Harvard Law School analysis of the EATS Act warned it could have consequences beyond just regulations on animal confinement and jeopardize more than 1,100 state laws related to invasive plant disease protection, food safety regulations, horse slaughter laws and some narcotic laws.

Supporters of Prop 12 believe lawmakers should focus more on helping farmers retrofit their operations.

U.S. Rep. Angie Craig, a Minnesota Democrat,&nbsp;<a target="_blank" href="https://brownfieldagnews.com/news/prop-12-solutions-beyond-eats-act/">told the Brownfield radio network</a>&nbsp;in January that her office was looking into federal grants to help pork producers adhere to Prop 12 standards.

In Oklahoma, Senate Bill 1325 would create a $4 million fund to provide grants to pig farmers to remove gestation crates and build new structures that meet California’s standards.

Prices still leveling out while producers see new market

Economists are also watching the impact Prop 12 might have on consumer prices, with some estimating the new law will increase the price of pork in California by roughly 25 cents per pound, according to a study by the University of California.

A California Department of Finance&nbsp;<a target="_blank" href="https://dof.ca.gov/wp-content/uploads/sites/352/Forecasting/Economics/Documents/DF-131_CDFA_Proposition_12_SRIA.pdf">analysis</a>&nbsp;estimated that consumers of egg and whole pork products would pay $1.1 million more for the newly regulated commodities in the first year of Prop 12.

Data for the price increases since Prop 12 became law is sparse. In November 2023, the USDA began tracking the average premium paid to producers for hogs sold under California’s confinement legislation. The amount paid to producers for being compliant with the law is negotiated between processors and producers. The average premium given to compliant producers was $6.30 per hundred pounds in the first month of the year, in addition to the base price paid for their hogs.

For some producers, the price increase and growing interest are seen as an opportunity to expand into new markets.

In Clear Lake, Iowa, Chris Petersen has operated a hog farm since the 1970s, raising thousands at a time up until the Iowa hog market crashed in the late 1990s.

Now, he raises a few hundred hogs a year with 30 sows on his farm. None of his animals are in gestation crates or confinement, and they never have been.

“I don’t believe in totally confining any type of livestock down to a small cage,” Petersen said.

Rather than going through large packing companies, he raises a premium breed of hogs known as Berkshires. He said it’s likely that some of his meat wound up in California before Prop 12 was finalized through the supply chain, but now that the ruling is in place, he sees California consumers as a new revenue stream.

“Absolutely I’ll sell to them,” Petersen said.

This&nbsp;<a target="_blank" href="https://investigatemidwest.org/2024/03/06/with-californias-prop-12-now-law-pork-producers-adapt-while-lobbying-groups-continue-to-fight/">article</a>&nbsp;first appeared on&nbsp;<a target="_blank" href="https://investigatemidwest.org/">Investigate Midwest</a>&nbsp;and is republished here under a Creative Commons license.

<figure>
 <img src="https://media.eaglewebservices.com/public/2020/12/1607531560248.jpeg" alt="Missouri, Iowa, North Carolina, Illinois and Minnesota had the most pigs born in the country from 2013 to 2023,&nbsp;cacounting for roughly half of the nation’s pork supply-File photo" />
 <figcaption>Missouri, Iowa, North Carolina, Illinois and Minnesota had the most pigs born in the country from 2013 to 2023,&nbsp;cacounting for roughly half of the nation’s pork supply-File photo</figcaption>
 </figure><h2>Despite publicly declaring years ago to not sell certain pork products in California, some companies that own major meatpacking plants have signed up to do just that</h2>BY:&nbsp;<a href="https://missouriindependent.com/author/johnmccracken/">JOHN MCCRACKEN</a>&nbsp;AND&nbsp;<a href="https://missouriindependent.com/author/benfelder/">BEN FELDER</a>In 2021, two years before California enacted new hog confinement standards for pork to be sold within its borders, Seaboard Foods said it would “no longer sell certain whole pork products” in the state.Passed in 2018, California’s Farm Animal Confinement Initiative, often referred to as Proposition 12, required pork producers to give sows, or mother pigs, at least 24 square feet of space per animal.Nearly 5% of Seaboard’s 7 million hogs produced each year are sold in California but the company said the coming Prop 12 standards would significantly decline how much business it would do moving forward in the nation’s most populous state.But when the new standards went into effect on Jan. 1, 2024, Seaboard was listed as a Prop 12-compliant distributor with the California Department of Food and Agriculture.“In our connected food system, our farms raise market hogs born from sows in various housing types based on customer requirements, including … for Prop 12 group housing compliant for California,” David Eaheart, a spokesperson for Seaboard, told Investigate Midwest when asked about the company continuing to sell into California. “Because of this, we can flex between different sow housing requirements to produce pork products based on customer demand.”Seaboard did not say how its business this year compares to years past. But it’s an example of how many of the nation’s largest pork producers, who once said the new standards would limit or end their business in California, are adapting to the new standards.Investigate Midwest reviewed financial statements from more than a dozen of the largest pork-producing corporations and California’s new Prop 12 pork distribution lists, along with speaking to several hog farmers to better understand the impact Proposition 12 is having on their industry.Two months into the new Prop 12 standards, the picture that emerged is one where the nation’s largest pork producers are largely adapting to the new rules in an effort to continue sales in a state that consumes about 15% of the nation’s pork, the highest rate in the nation, according to&nbsp;<a target="_blank" href="https://nppc.org/press-releases/supreme-court-to-hear-nppc-case-against-prop-12/">consumption estimates from the National Pork Producers Council</a>.&nbsp;&nbsp;&nbsp;The Biden administration is also concerned that Prop 12 could create a 50-state patchwork of legislation for hog producers.In 2022, the administration asked the Supreme Court to strike down California’s animal confinement legislation.At a February Senate Agriculture, Nutrition, and Forestry Committee hearing, U.S. Department of Agriculture Secretary Tom Vilsack said he supported the federal government stepping in to clarify these regulations.“Farmers don’t need the chaos,” Vilsack said. “They need clarity and certainty.”While many of America’s largest pork producers and distributors have said they plan to comply with the new law, some have blamed the additional hurdles for recent plant closures and layoffs. More than 230 out-of-state distributors already have been licensed to sell pork in California by the state’s Department of Food and Agriculture, according to the agency’s latest registered distribution list.Some local hog farmers with compliant pens have found an opportunity to sell into a new competitive market, while those with non-compliant operations have balked at the new standards, claiming it would be too expensive to comply with or is against their principles.“I don’t like California telling me (that) to be able to sell in this state, I have to raise these pigs this way,” said AV Roth, who owns a 3,000-sow farm in Wisconsin.Roth, who is also vice president of the Wisconsin Pork Association, said none of his hogs will ever go to California because he’s against another state regulating his business. His sows are housed in 14-square-foot gestation crates.“If they want to tell their farmers in California how to raise pigs that’s totally fine by me, but this is the great country of the United States and I should be able to sell in all 50 states,” Roth said.Dan Sumner, a professor of agriculture economics at UC-Davis, said that sentiment is common among many hog farmers.“Frankly, a bunch of know-nothing Californians who’ve never been on a hog operation think they can tell these guys what’s better for their pigs,” Sumner said. “If I was a hog farmer I’d be pissed off. It’s just insulting.”Anti-Prop 12 groups, including the National Pork Producers Council, claim hog farmers would have to spend $3,500 per sow to become compliant. The council, along with the American Farm Bureau, has vowed to continue pursuing legal and legislative avenues to overturn Prop 12.But animal welfare organizations have called the cost estimates overblown and said new confinement standards are the ethical thing to do.“I don’t think anyone needs to be a rocket scientist to understand that having space to lie down and stretch your legs is necessary for mental and physical well-being,” said Allison Molinaro, U.S. campaigns manager for the nonprofit organization Compassion in World Farming. “Living in a gestation crate is like having a human live in a telephone booth.”<h2>Where’s the pork?</h2>California is the nation’s largest consumer of pork products but pinpointing exactly where the state’s pork supply comes from is not clear.According to the California Department of Food and Agriculture, before Prop 12, no public data tracked how much pork comes from specific states or companies. To see which states could be impacted the most by Prop 12, Investigate Midwest analyzed U.S. Department of Agriculture data to locate where most baby pigs are born.Iowa, North Carolina, Illinois, Minnesota and Missouri had the most pigs born in the country from 2013 to 2023, accounting for roughly half of the nation’s pork supply.!function(){“use strict”;window.addEventListener(“message”,(function(a){if(void 0!==a.data[“datawrapper-height”]){var e=document.querySelectorAll(“iframe”);for(var t in a.data[“datawrapper-height”])for(var r=0;r&lt;e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[“datawrapper-height”][t]+”px”;e[r].style.height=i}}}))}();Local chapters of the National Pork Producers Council located in these major states declined multiple requests to comment, but economist Steve Meyer, a consultant with the National Pork Producer Council, told&nbsp;<a target="_blank" href="https://www.desmoinesregister.com/story/money/agriculture/2023/06/07/californias-prop-12-comes-as-iowa-pork-producers-face-mounting-losses/70249889007/">the Des Moines Register</a>&nbsp;in 2022 that less than half the pork sent to California met Prop 12 standards, at that time.In January, Meyer told Investigate Midwest he estimates there still isn’t enough compliant pork supply in the U.S. to meet demand based on what California consumers have eaten in the past.While there aren’t available data points to support this claim, Meyer said he was confident the nation is short roughly 250,000 complaint sows to meet California’s historic demand, which would lead to either a price increase or a lack in availability for cuts of pork.“I believe the covered products are in short supply, and California consumers are substituting exempt pork products and other proteins,” Meyers said.Premade pork products are exempt from Prop 12 standards, including sliced ham, salami and deli meat.Most of the nation’s major pork producers have taken steps to become compliant with the new California law, some starting the transition more than a decade ago.Smithfield Foods, the nation’s largest pork producer and owner of some 885,000 sows, has spent years transitioning to group housing that meets the standards of Proposition 12.The company owns more than 400 pork production farms in Colorado, Idaho, Illinois, Missouri, North Carolina, Oklahoma, South Carolina, Utah and Virginia, according to Smithfield spokesperson Ray Atkinson. According to the company’s 2021 Sustainability Report, all of the company-owned farms are compliant with large, group housing for sows.Smithfield Foods, the nation’s largest pork producer and owner of some 885,000 sows, has spent years transitioning to group housing that meets the standards of Proposition 12.The company owns more than 400 pork production farms in Colorado, Idaho, Illinois, Missouri, North Carolina, Oklahoma, South Carolina, Utah and Virginia, according to Smithfield spokesperson Ray Atkinson. According to the company’s 2021 Sustainability Report, all of the company-owned farms are compliant with large, group housing for sows.The company contracts out pork production to more than 2,000 contract farmers across the county, and information about the compliance of these farms was not made available.“We have established supply agreements for Prop 12-compliant pork and will continue to engage customers to expand the availability of compliant products,” Atkinson said in an email.Still, the company has openly complained about the new Prop 12 standards, and said it was one reason it recently&nbsp;<a target="_blank" href="https://www.cbsnews.com/losangeles/news/farmer-john-meatpacking-plant-in-vernon-to-close-in-2023-due-to-escalating-costs/">closed meatpacking plants in California</a>.Atkinson said Smithfield continues to sell into California but its sales numbers are confidential.“We fully support a federal legislative solution that will resolve a growing patchwork of state-by-state regulations that make it increasingly difficult to keep food affordable,” Atkinson said.Other major pork producers and grocery chains have said they are compliant with Prop 12 as of the beginning of 2024:<ul>
 <li>Tyson Foods&nbsp;did not respond to repeated requests for comment. However, in a 2021 earnings call, Tyson CEO and President Donnie King said that the company is ready and able to provide compliant pork products. “It’s not something we were excited about, but we can align suppliers, and we can certainly provide the raw material to service our customers in that way,” King said.</li>
 </ul><ul>
 <li>Clemens Food Group,&nbsp;a major pork producer based in Pennsylvania, has been Prop 12 compliant since the beginning of 2023. The company has “fully transitioned to group housing for all our sows,” said Brad Clemens, the company’s president, in a statement.</li>
 </ul><ul>
 <li>JBS,&nbsp;the nation’s fifth largest pork producer,&nbsp;<a target="_blank" href="https://www.meatpoultry.com/articles/27678-jbs-usa-enters-acquisition-agreement-with-midwest-producer">purchased</a>&nbsp;an Iowa pork producer in 2022 to expand its Prop 12-compliant sow housing. According to a translated transcript of a November 2023 corporate earnings call filed with the U.S. Securities and Exchange Commission, the Brazil-based company said it took steps to begin transitioning into Prop 12 compliance when there was still “uncertainty” about the legislation becoming successful. The company did not respond to repeated requests for comments.</li>
 </ul><ul>
 <li>The top five grocery retailers in California —&nbsp;Walmart, Albertsons, Grocery Outlet, Kroger and Trader Joe’s&nbsp;— are all complying with the state’s confinement legislation to varying degrees. Albertsons’ website notes that some of their suppliers have decided not to comply with Prop 12 standards, which could limit the pork products sold on store shelves. Walmart’s&nbsp;<a target="_blank" href="https://corporate.walmart.com/purpose/esgreport/environmental/animal-welfare">website</a>&nbsp;notes that it has asked its suppliers to “implement solutions to address concerns regarding housing systems that lack sufficient space, enrichment, or socialization, such as sow gestation crates.” According to Kroger company documents, the chain aims to have all of the pork they sell come from sow group housing by 2025. Trader Joe’s spokesperson Nakia Rohde said the grocery chain has provided gestation crate-free pork since 2018, which is clearly labeled in California and Massachusetts stores. Rodhe said in an email that the company sources its pork from the Midwest, but didn’t further clarify the sourcing. Grocery Outlet did not respond to a request for comment.</li>
 </ul>While California is the largest pork-consuming state in the U.S., a growing amount of the nation’s pork is being sent overseas, lessening the impact of Prop 12 on many large producers.Until 1995, less than 5% of American pork production was exported. Today, 27% of U.S. pork is exported, a higher rate than beef or poultry.There were some concerns that Prop 12 could have an impact on exports because much of America’s pork destined for Asia passes through California ports. But several weeks into Prop 12, export officials said they haven’t seen any problems.“The bottom line is that so far exports transiting California for shipment out of the West Coast ports seem to be flowing smoothly,” John Herath, a spokesperson for the U.S. Meat Export Federation, told Investigate Midwest.<h2>Pork industry says it will continue to fight Prop 12</h2>National agriculture groups and major pork producers originally hoped a legal challenge would end Prop 12 before it ever started. But the American Farm Bureau and the National Pork Producers Council’s lawsuit was struck down by the U.S. Supreme Court, where a 5-4 ruling last year upheld the law.Despite the loss, the groups said they continue to look for ways to overturn Prop 12.“If we are going to have a patchwork of 50 different rules, that is going to make it very difficult … to produce livestock efficiently in this country,” Jack Irvin, vice president of public policy for the Ohio Farm Bureau, said from the American Farm Bureau’s national convention in Salt Lake City in January.Prop 12 was a major discussion topic at the convention, Irvin said, where members passed a resolution asking the farm bureau to continue its opposition against the measure, including pushing for a federal law banning state-level confinement standards.But opponents of a federal law banning Prop 12 claim it would create further chaos.The Ending Agricultural Trade Suppression Act, also known as the EATS Act, is a proposal in Congress that would prevent states from enacting laws similar to Prop 12. But a Harvard Law School analysis of the EATS Act warned it could have consequences beyond just regulations on animal confinement and jeopardize more than 1,100 state laws related to invasive plant disease protection, food safety regulations, horse slaughter laws and some narcotic laws.Supporters of Prop 12 believe lawmakers should focus more on helping farmers retrofit their operations.U.S. Rep. Angie Craig, a Minnesota Democrat,&nbsp;<a target="_blank" href="https://brownfieldagnews.com/news/prop-12-solutions-beyond-eats-act/">told the Brownfield radio network</a>&nbsp;in January that her office was looking into federal grants to help pork producers adhere to Prop 12 standards.In Oklahoma, Senate Bill 1325 would create a $4 million fund to provide grants to pig farmers to remove gestation crates and build new structures that meet California’s standards.<h2>Prices still leveling out while producers see new market</h2>Economists are also watching the impact Prop 12 might have on consumer prices, with some estimating the new law will increase the price of pork in California by roughly 25 cents per pound, according to a study by the University of California.A California Department of Finance&nbsp;<a target="_blank" href="https://dof.ca.gov/wp-content/uploads/sites/352/Forecasting/Economics/Documents/DF-131_CDFA_Proposition_12_SRIA.pdf">analysis</a>&nbsp;estimated that consumers of egg and whole pork products would pay $1.1 million more for the newly regulated commodities in the first year of Prop 12.Data for the price increases since Prop 12 became law is sparse. In November 2023, the USDA began tracking the average premium paid to producers for hogs sold under California’s confinement legislation. The amount paid to producers for being compliant with the law is negotiated between processors and producers. The average premium given to compliant producers was $6.30 per hundred pounds in the first month of the year, in addition to the base price paid for their hogs.For some producers, the price increase and growing interest are seen as an opportunity to expand into new markets.In Clear Lake, Iowa, Chris Petersen has operated a hog farm since the 1970s, raising thousands at a time up until the Iowa hog market crashed in the late 1990s.Now, he raises a few hundred hogs a year with 30 sows on his farm. None of his animals are in gestation crates or confinement, and they never have been.“I don’t believe in totally confining any type of livestock down to a small cage,” Petersen said.Rather than going through large packing companies, he raises a premium breed of hogs known as Berkshires. He said it’s likely that some of his meat wound up in California before Prop 12 was finalized through the supply chain, but now that the ruling is in place, he sees California consumers as a new revenue stream.“Absolutely I’ll sell to them,” Petersen said.This&nbsp;<a target="_blank" href="https://investigatemidwest.org/2024/03/06/with-californias-prop-12-now-law-pork-producers-adapt-while-lobbying-groups-continue-to-fight/">article</a>&nbsp;first appeared on&nbsp;<a target="_blank" href="https://investigatemidwest.org/">Investigate Midwest</a>&nbsp;and is republished here under a Creative Commons license.<figure>
 <img src="https://investigatemidwest.org/?republication-pixel=true&amp;post=745123&amp;ga4=G-R9VE8P61LG" alt="" />
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 </figure>

With California’s Prop 12 now law, pork producers adapt while lobbying groups continue to fight

A warm February led to increased snowmelt and runoff in the Missouri River Basin above Sioux City Iowa. February runoff was 1.8 million acre-feet, 161 percent of average with above-average runoff in every reach except Sioux City, which was near average. However, the updated 2024 calendar year runoff forecast for the basin continues to be below average.

“Despite the increased runoff in February and improved soil moisture conditions, we expect 2024 runoff to remain below average,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Water Management Division.

The much warmer-than-normal temps led to an early melt of the lower-than-average plains snow. Soil moisture conditions are near or above normal across most of the basin with below-normal soil moisture conditions in the eastern basin. The 2024 calendar year runoff forecast above Sioux City is 17-million-acre feet, 66 percent of average. Current system storage is 53.9 MAF.

A warm February led to increased snowmelt and runoff in the Missouri River Basin above Sioux City Iowa. February runoff was 1.8 million acre-feet, 161 percent of average with above-average runoff in every reach except Sioux City, which was near average. However, the updated 2024 calendar year runoff forecast for the basin continues to be below average.“Despite the increased runoff in February and improved soil moisture conditions, we expect 2024 runoff to remain below average,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Water Management Division.The much warmer-than-normal temps led to an early melt of the lower-than-average plains snow. Soil moisture conditions are near or above normal across most of the basin with below-normal soil moisture conditions in the eastern basin. The 2024 calendar year runoff forecast above Sioux City is 17-million-acre feet, 66 percent of average. Current system storage is 53.9 MAF.-NAFB

Missouri River Runoff Forecast Below Average

The House Agriculture Committee laid out a roadmap to relieve labor shortages that have seriously impacted America’s farmers and ranchers. The Agriculture Labor Working Group released its final report on how to improve the H-2A guest worker program. It includes more than 20 recommendations to streamline the program and make labor more affordable for farmers.

“We’re losing American farms rapidly, and there’s no question the broken workforce system is partly to blame,” says Farm Bureau President Zippy Duvall.

While the working group recommendations don’t address all the labor challenges facing farmers, they do offer needed solutions, such as streamlining the recruiting and hiring of H-2A employees. They also want to expand the H-2A program to meet year-round needs, recommend paying employees based on duties performed during the majority of the day, and reform wage calculation standards to provide stability in farmworker pay rates.

The full committee report is available at agriculture.house.gov.

The House Agriculture Committee laid out a roadmap to relieve labor shortages that have seriously impacted America’s farmers and ranchers. The Agriculture Labor Working Group released its final report on how to improve the H-2A guest worker program. It includes more than 20 recommendations to streamline the program and make labor more affordable for farmers.“We’re losing American farms rapidly, and there’s no question the broken workforce system is partly to blame,” says Farm Bureau President Zippy Duvall.While the working group recommendations don’t address all the labor challenges facing farmers, they do offer needed solutions, such as streamlining the recruiting and hiring of H-2A employees. They also want to expand the H-2A program to meet year-round needs, recommend paying employees based on duties performed during the majority of the day, and reform wage calculation standards to provide stability in farmworker pay rates.The full committee report is available at agriculture.house.gov.-NAFB

House Ag Committee Offers Farm Labor Solution

The Securities and Exchange Commission omitted the Scope 3 reporting requirement from its final climate disclosure rule. Scope 3 would have required public companies to report the greenhouse gas emissions from their supply chains and affected family farms and ranches.

“Farmers are protecting the natural resources they’ve been entrusted with and continue advancing climate-smart agriculture,” says Farm Bureau President Zippy Duvall. “However, they can’t afford to hire compliance officers just to handle SEC reporting requirements.”

International Dairy Foods Association President Michael Dykes says it would have placed a significant financial burden on millions of companies outside of SEC jurisdiction. “The proposed rule demonstrated a lack of engagement with the dairy value chain and a lack of analysis on the actual impact of the rule on privately held small entities,” he says.

Some companies have said they will still require the emissions information from producers because investors, consumers, and other governments demand it.

The Securities and Exchange Commission omitted the Scope 3 reporting requirement from its final climate disclosure rule. Scope 3 would have required public companies to report the greenhouse gas emissions from their supply chains and affected family farms and ranches.“Farmers are protecting the natural resources they’ve been entrusted with and continue advancing climate-smart agriculture,” says Farm Bureau President Zippy Duvall. “However, they can’t afford to hire compliance officers just to handle SEC reporting requirements.”International Dairy Foods Association President Michael Dykes says it would have placed a significant financial burden on millions of companies outside of SEC jurisdiction. “The proposed rule demonstrated a lack of engagement with the dairy value chain and a lack of analysis on the actual impact of the rule on privately held small entities,” he says.Some companies have said they will still require the emissions information from producers because investors, consumers, and other governments demand it.-NAFB