Farm Headlines, Wednesday February 24, 2016

Farm Bureau: TPP Will Boost Farm Exports, Income

The Trans-Pacific Partnership will tear down trade barriers and help level the playing field for U.S. agricultural exports to 11 nations across the Pacific Rim, according to the American Farm Bureau Federation. Farm Bureau released an economic analysis Tuesday estimating the trade pact will boost annual net farm income in the United States by $4.4 billion. The report forecasts farm-price increases for corn of five cents per bushel, a 12 cent per bushel increase for soybeans, a two-cent per bushel increase for wheat and a 16 cent per hundredweight increase for rice. Cotton prices are not expected to change. However, cash receipts are projected to rise by $21 million. AFBF also predicts price increases for beef at $2.66 per hundredweight, a $2.45 increase for pork and a $1.45 increase for poultry. Dairy products would also increase; including milk rising 21 cents per hundredweight. The agreement has been approved by negotiators from the 12 TPP nations. The U.S. International Trade Commission is preparing a formal analysis for the administration, which will formally ask Congress to ratify the deal.

Obama Cautiously Optimistic Congress Will Support TPP

President Barack Obama Monday said he was “cautiously optimistic” Congress will support the Trans-Pacific Partnership. Speaking to a delegation of state governors at the White House earlier this week, Obama said he would have to rely on votes from pro-trade Democrats and Republicans since labor leaders opposed the deal, according to Reuters. Obama did say Republican Senate Majority Leader Mitch McConnell and Republican Speaker of the House Paul Ryan had largely been supportive of the pact. The 12 member-nations reached an agreement last year on the trade deal and signed the pact earlier this month. It still must be ratified by the governments of each member nation. Congress seems likely to delay a vote on the trade deal until after the November elections in the lame duck session, or once a new President takes office next year.

Appeals Court to Hear WOTUS Challenges

A federal appeals court this week ruled it will hear challenges to the Waters of the U.S. rule. The 6th Circuit Court of Appeals in Cincinnati Monday agreed to hear challenges to the Environmental Protection Agency’s rule by 18 states. The states say the EPA goes too far with the rule, and that WOTUS would be costly to landowners. The EPA defends the rule as a safeguard for drinking water for 117 million Americans. The rule went into effect last August but is temporarily on hold pending resolution of the jurisdictional challenge. The 6th Circuit issued the federal stay last year. A Washington Post opinion piece writes the announcement to hear challenges on the rule “would seem to indicate that things look good for those challenging the rule for exceeding the scope of the Clean Water Act.” Challenges to the rule may also benefit from being heard in lower courts as the Supreme Court seems likely deadlocked in a 4-4 political tie for the near future following the death of Justice Antonin Scalia.

NAFB News