News Update
November 23, 2011
USMEF Commentary by
Danita Rodibaugh: Korea Ratifies FTA
Ratification of the Korea-U.S. Free Trade Agreement by the Korean National Assembly is a successful outcome both for the U.S. agricultural sector, as well as consumers in South Korea.
This is true globalization — the highest level of exchange that countries can experience is when consumers can trade goods and services around the world in a borderless economy.
Korean consumers have endured rampant food inflation, and this trade pact will provide relief. Tariffs on U.S. beef imported by Korea will drop from 40% to zero over 15 years, and duties on U.S. pork, which range from 22.5% to 25%, will be phased out over two years starting Jan. 1, 2014.
For the American producers and exporters, this pact will create expanded opportunities for red meat exports to a market that has a demonstrated appetite for U.S. beef and pork. Already this year (through September), U.S. beef exports to Korea are up 45% in volume and 37% in value compared to 2010 levels, reaching 119,044 metric tons [262.4 million pounds (lb.)] valued at $527.7 million. Even at that, Korea is just beginning to show the potential it demonstrated in 2003 when it purchased 543.6 million lb. of U.S. beef valued at $815 million.
And U.S. pork exports to Korea through September are up 139% in volume and 189% in value vs. last year, reaching 153,330 metric tons (338 million lb.) valued at $395.1 million.
The value of U.S. red meat exports for American producers has never been higher than it is right now. Both beef and pork exports are projected to hit record highs, exceeding $5 billion in value this year. And the per-head value of those exports also is at a high, topping $202 per head for beef and $54 for pork. The invigoration of our trading relationship with South Korea will only add more value to that trade that will benefit the U.S. agricultural sector.
Rain Good Thanksgiving Gift for Winter Pasture Growers
Rain came to large parts of Texas, an early Thanksgiving feast for already planted winter pastures, according to Texas AgriLife Extension Service personnel.
Though welcome, the rain came too late for drought-hammered summer pastures, many of which are in sad shape, according to AgriLife Extension county agent reports.
For example, before the rain, Pasquale Swaner, AgriLife Extension agent for Falls County, near Waco, reported that while “driving throughout the county, pastures are worse than anyone can imagine. A large portion are just grazed to dirt.”
However, the rain will certainly help winter pastures, and eventually it will be good for warm-season pastures, too, said Vanessa Corriher, AgriLife Extension forage specialist in East Texas.
“For pastures that have been grazed down, it’s going to take them a long time to recover,” Corriher said. “Most of those forages, our warm-season perennials, are going into dormancy as we get cooler temperatures. We’re not going to see any recovery until we get into spring.”
But for many of those producers who planted winter pastures earlier, the rains came just in time, she said.
“Whether it’s a cool-season annual ryegrass, or some small grains or any cool-season legume, the moisture will help those forages to potentially provide some grazing,” she said.
Though it’s highly recommended to fertilize winter pastures, the timing is a bit off, Corriher said. Her standard recommendation is to wait until around the middle of November, but after the first freeze to ensure all warm-season pastures have entered dormancy. East Texas hasn’t had any frosts yet.
“And it’s a better idea to get the nitrogen out before we’ve had a rain, but, of course, sometimes we can’t anticipate that next rainfall,” she said. “But if you have some winter pasture that’s coming up, and you are anticipating some more rain, fertilization would be a great idea for optimal production.”
Some producers were holding off planting because of lack of moisture, but it’s a bit too late to plant now. For East Texas, Corriher doesn’t recommend planting any winter forages past about Nov. 15.
“There are some producers, who I’ve visited with recently, who are looking at planting winter pastures, primarily annual ryegrass,” she said. “Realize, though, that planting at a later date will result in (forage) production later in the season, and not necessarily when it’s needed.” More information on the current Texas drought and wildfire alerts can be found on the AgriLife Extension Agricultural Drought Task Force website at http://agrilife.tamu.edu/drought/. You can also find access to drought information for producers across the country at www.angusjournal.com/drought, available as a topic site through Angus Production Inc.’s Virtual Library, www.api-virtuallibrary.com.
MSU Extension Expo Offers Long-Term View
for Farmers, Ag Professionals
Whether you’re talking about the weather or government regulations, agriculture’s changing climate continues to challenge Michigan farmers. That’s why Michigan State University (MSU) Extension is bringing farmers and ag professionals with interests in various, major ag commodities together to learn more about the changes on the horizon. The Michigan Ag Commodities Educational Expo will take place Jan. 26, 2012, at the Lansing Center in Lansing, Mich.
“We are looking forward to having knowledgeable speakers presenting to such a diverse agriculture audience,” said Dale Rozeboom, MSU professor and MSU Extension specialist. “So often we have great speakers at our individual winter commodity meetings. This expo allows people from all ag sectors to come together in one setting, hear the very best speakers and get the latest information on a variety of important topics.”
At the expo, MSU economists and MSU Extension specialists Jim Hilker and Chris Wolf will be discussing market outlook for grains, meat, milk, hay and eggs. Hilker and Wolf will be explaining the key factors affecting the future of agriculture. Kurt Thelen, MSU professor and MSU AgBioResearch scientist, will lead a producer panel in a discussion of lessons learned from the 2011 planting season.
Sally Shaver, a former employee of the U.S. Environmental Protection Agency (EPA) who worked at the agency for more than 30 years, will talk about the impact new air regulations may have on food prices and farm incomes. Representatives of Sen. Debbie Stabenow will be discussing the new federal farm bill, which provides funding to farmers.
Curtis Talley, MSU Extension educator, will draw from real-world experiences to explain all of the negotiations and calculations that go into oil and gas leasing.
The presentations will be beneficial for agriculture decision makers including owners of Michigan farms, business consultants for farms and farm executives. These agriculture professionals will gain insight on the future of the agriculture industry, including business management, reducing carbon footprint and more.
The Michigan Ag Commodity Educational Expo takes place from 9:30 a.m. to 3 p.m. The registration fee is $75. You can register electronically by visiting http://bit.ly/MACEE or you can register by contacting Megghan Honke at honkemeg@msu.edu or 517-353-3175, ext. 229.
November Angus Beef Bulletin EXTRA emailed yesterday
The November edition of the Angus Beef Bulletin EXTRA, a monthly electronic supplement to the published magazine, emailed yesterday. If you did not receive a copy and want to be added to the email list, send your request to bulletinextra@angusbeefbulletin.com with the word SUBSCRIBE in the subject line.
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