Ag Headlines, Tuesday November 24, 2015

Deere to Measure Ag Industry Slump

Deere & Company will soon provide an outlook as to what may be in store for the agriculture industry in 2016. The world’s largest seller of combines and tractors will report its fiscal fourth-quarter results on Wednesday. With the report will come a sales outlook that will set the tone for the farm machinery industry in 2016. The report is expected to show a big step down in Deere’s projection that would signal a prolonged slump for the sector, according to the Wall Street Journal. Demand for farm equipment has paralleled that for machinery used in mining and oil-and-gas production, which likewise are reeling in a global commodity slump. For fiscal 2016, analysts expect Deere’s total equipment revenue to fall 7% to $24.4 billion from the $26.3 billion estimated for the past year. As in 2008, equipment manufacturers are hoping for Congress to restore tax deductions for farmers up to $500,000 and to make the deductions permanent to help spur equipment purchasing.

GMO Salmon Amps up Debate over Labeling

Following last week’s approval of genetically engineered salmon by the U.S. Food and Drug Administration, the battle is expected to heat up over biotech labeling. On Thursday, the FDA approved biotech salmon for human consumption, making salmon the first genetically engineered animal approved for consumption. Reuters reports the move will heat up the debate over GMO labeling laws. The first supplies of the biotech salmon, which will be engineered by AquaBounty Technologies, will grow faster than conventional salmon. The salmon will likely hit the U.S. store shelves in two years or more, after being raised in facilities in Canada and Panama. Chief Executive Ronald Stotish said the company will follow the FDA’s rules that do not require special labeling because the agency says the salmon is nutritionally equivalent to conventional, farm-raised Atlantic salmon.

House Democrat Says Congress Must Pass TPP

If the Trans-Pacific Partnership is as good as the White House claims, a House Democrat says then Congress must pass the 12 nation trade deal. Representative Gerry Connolly of Virginia is one of 28 Democrats to support Obama’s bid earlier this summer for Trade Promotion Authority. TPA, or Fast Track, gives the House and Senate up-or-down votes on the massive agreement with no chance of amending or filibustering the pact. Connolly said the 28 Democrats who supported the fast-track authority “are pretty solid” in their support. He said the House is likely to pick up a few other Democrats in favor of the trade deal. Those votes may be needed as he said I’m concerned about the erosion of support on the Republican side of the aisle,” according to The Hill. He noted some Republicans may back away from the deal because of provisions on dairy, tobacco and pharmaceutical products.

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