U.S. Agriculture Secretary Tom Vilsack Thursday released the following statement regarding the text of the Trans-Pacific Partnership Agreement.


"The release of the text of the Trans-Pacific Partnership is an important step forward in the process to make this landmark agreement for U.S. agriculture a reality. The text confirms that this agreement provides new market access across the board for America's farmers and ranchers by lowering tariffs and eliminating other barriers, and will boost exports and support jobs in our rural economies.


"At the end of the day, TPP is about opportunity. The agreement will advance U.S. economic interests in a critical region that accounts for nearly 40 percent of global GDP. It will also help the United States respond to the regional and bilateral trade agreements that are already in place or are being negotiated by competitor countries. This high standard agreement will expand U.S. agricultural exports, generate more rural economic activity, and support higher-paying American jobs. I encourage our farmers and ranchers to take a look at what's in the deal for them, and I hope that after a period of consideration and review in the coming months, Congress will move quickly to pass this agreement.


"While the release of the text is a critical benchmark, there is still much work to be done. We look forward to a discussion across the country about the details of this agreement, including the simple fact that TPP removes barriers to trade in food and agriculture products, which is critical for the economic health of U.S. agriculture and rural communities. With 95 percent of the world's consumers outside of our boarders, we cannot afford to let this opportunity slip away."


To review the text of the Trans-Pacific Partnership, visit www.usda.gov/trade.

The White House Thursday posted the text of the Trans-Pacific Partnership (TPP) trade agreement, prompting the start of a public review process of the deal between Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. Livestock producer groups say they have read the deal and they like it. The National Pork Producers Council, the  National Chicken Council (NCC) and National Cattlemen's Beef Association (NCBA) both confirmed that this agreement is a major victory for U.S. agriculture.
 
The National Pork Producers Council is expressing unequivocal support for the TPP deal and called on the U.S. Congress to expeditiously pass the agreement.

"Past U.S.  trade agreements (FTAs) have demonstrated the importance to our industry of opening international markets," said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. "TPP will provide benefits to our producers that dramatically exceed those of prior trade agreements. I assure you that pork producers across this great nation will do whatever it takes to get TPP passed by Congress and implemented."

Click here for the complete statement from NPPC on TPP.

 
"The National Chicken Council applauds U.S. Trade Representative Michael Froman and his team of negotiators for their years of work on the TPP, and urge expeditious congressional approval," said NCC President Mike Brown. "The TPP represents a commercially meaningful and high standard agreement that will open markets and increase U.S. chicken exports and bring increased economic benefits to chicken farmers and companies across the country.  Click here to read more from NCC.

"While the agreement is not perfect, it is a vast improvement over the current tariff rates, and the greatest market access that has ever been negotiated to Japan," said NCBA President Philip Ellis.  "Clearly, working collaboratively we were able to achieve more than we could have alone. The TPP will immediately reduce the tariff to Japan, our largest market for U.S. beef, from 38.5 percent to 27.5 percent. And tariffs will continue to decrease, in some cases be eliminated, over the next 15 years."  Click here for more from NCBA.

While these livestock groups are cheering the details released on the TPP- one general farm group- the National Farmers Union- says the deal is "as bad as we feared" and is urging Congress to vote no.

NFU President Roger Johnson says "While NFU will continue to analyze the text of the agreement, we already know TPP includes no enforceable language to address currency manipulation, an effective maneuver used by our competitors to immediately tilt the playing field in their favor, even after signing an agreement of this scope and magnitude, having the potential to completely wipe out any gains."

Click here for the complete statement provided to us from NFU by their President.

U.S. pork exports showed modest improvement in September while beef exports endured the most difficult month in some time, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).


September pork export volume was up 6 percent from a year ago to 172,012 metric tons (mt). Export value was $456.1 million, down 11 percent year-over-year but the highest since May. Pork exports through the first nine months of the year declined 4 percent in volume (1.58 million mt) and 17 percent in value ($4.21 billion) compared to January-September 2014.


Beef export volume fell 21 percent from a year ago in September to 79,474 metric tons (mt) and value was down 28 percent to $456.6 million - the lowest since January. For the first nine months of 2015, exports were down 12 percent in volume (782,705 mt) and 8 percent in value ($4.8 billion).


There were a few bright spots for September beef exports.  Click here to read more about beef and pork exports.

One of the most vocal groups in its criticism of the Federal Crop Insurance program is the Environmental Working Group. The EWG was a major force in demanding farm policy reform that led to the eventual elimination of the direct farm program payment. Now that the five billion dollars that funded the Direct Payments is off the table- the EWG has turned all of its farm policy attentions to what they call "an Annual Disaster." The group has just published a report that emphasizes how they believe that the subsidies that are tied to crop insurance are a free ride given to approximately one million farmers each year. EWG claims that the Crop Insurance subsidies are even worse than the price support programs they have now mostly replaced- especially when you measure the environmental impact.


EWG analyzed crop insurance and ad hoc disaster payment data and reviewed scientific and economic studies of the two approaches to farm assistance, and they conclude:

 
"In the six years between 1999 and 2008 in which Congress authorized large ad hoc disaster relief programs, the total cost to taxpayers of crop insurance (which does not include the share of premiums paid by farmers) was almost $20 billion - nearly a third larger than disaster payments.

In the report just released by the organization- EWG says "swapping crop insurance for disaster programs has created "a different kind of disaster - for taxpayers and the environment."  Click here to read more from EWG and for a link to the complete report.

Wheat prices are in short-run up trend. On this weekend's edition of SUNUP, Host Lyndall Stout talks with Oklahoma State University Grain Marketing Specialist Kim Anderson about the wheat market outlook. A couple weeks ago, the December Kansas City wheat futures prices bottomed out at $4.70. Since then wheat prices have gotten up to $4.90. Anderson said wheat prices have been on a long run downward trend since harvest.


"To break those trends, that one that was set in July, we need to get above $5 and really above $5.20 to break the long run down trend that started back in 2012," Anderson said. "We need to get those futures prices up around $5.50 or $5.60."


For wheat prices to move higher in the short run, wheat production needs to drop in key growing regions, such as Australia and Argentina. Both of those crops are being harvested right now. Anderson said Australia's wheat production is coming in lower than expected, but he thinks that has already been factored into the market. While the wheat crop in Argentina is coming in close to expectations. A larger market factor is an up coming election. Anderson said right now Argentina has a relatively high export tariff rate for wheat and both candidates have said they will reduce or eliminate the tariff. That has farmers holding onto their wheat crop.


"I think both of those are reasons that wheat prices challenge that $5 mark," Anderson said. "Whether they will take 'em through it, probably not. We probably need a loss of production somewhere else to get prices to break $5 or $5.20."


Click or tap here to listen to Kim's comments on marketing the 2015 wheat crop or to read the SUNUP show lineup.

Cattle producers have experienced a challenging year for 2015, especially with the cattle market collapse of late August, September into early October. Speaking at the Angus Means Business Convention in Overland Park, Kansas, CattleFax Market Analyst Lance Zimmerman said the collapse wasn't completely unexpected. CattleFax predicted 2015 could be a year of volatility. In going into the year, he said they tried to warn cattlemen that this market was near the top end of a historical trading range.


In 2014, consumers had to get used to consuming less than 200 pounds of protein.   Zimmerman said that took place for the first time since 1991.   He said it wasn't due to demand, but rather supply. The beef industry had gone through a decade of contraction. The pork industry was battling with the porcine epidemic diarrhea virus (PEDV) and the broiler industry was struggling with fertility issues.


"Production was so constrained in 2014, you finally started to see some of those competing protein prices break at the end of last year," Zimmerman said. "But beef road the wave a little bit longer than the rest and we put in those highs in the first quarter. Then we carved out the lows here at the start of the fourth quarter. So, yeah, it's been a wild ride, but just due to dynamics we were facing it was due to happen at some point."


Heavy carcasses have weighed down the cattle market this year. Zimmerman said those heavy carcass are a symptom of a bigger problem.  Click or tap here to listen to this Beef Buzz feature.

 

 

The Apache Livestock Market has a special fall Female Replacement Sale happening tomorrow- starting at 11:00 AM.

They are selling approximately 700 head of quality fall and spring calving cows and heifers- details are available here.

**********

The Fall Gathering- Presented by Armitage Livestock is happening tomorrow as well- at OKC West Market, El Reno, Oklahoma
There are three times to remember:

11 a.m. Selling 2000 commercial females includes 165 pairs, 1200 young cows and 530 bred heifers

3:30 p.m. 35 Registered Brangus Bulls

6 p.m. A Bar Ranch Remuda Sale selling 17 ranch geldings and 40 weaned colts.

More information is available here.
**********