The administration’s efforts to control food inflation could be running into a challenge with President Donald Trump’s trade policy. Former USDA Chief Economist Joe Glauber says reciprocal tariffs run the risk of undermining administration efforts to bring egg prices down — if adopted as described.
Agriculture Secretary Brooke Rollins unveiled the administration’s strategy to combat avian flu last month, which included increasing egg imports. But Glauber pointed out egg-exporting nations maintain high duties on U.S. ag products — putting in them in line for reciprocal tariffs.
Turkey provides the U.S. with around 7 million dozen eggs, Glauber said. But it also has an average tariff on agricultural products of nearly 40%, way above the U.S.’ 5%.
If the tariffs are implemented as Trump and other officials have described, Glauber said they’ll run head on into the other policy goal. “These things can be really destructive,” Glauber warned. “We'll have to see what it looks like come April 2.”
Take note: The Federal Reserve raised its inflation forecast Wednesday in part due to tariffs, Chair Jerome Powell said.
USDA reports revived
USDA’s National Agricultural Statistics Service is reinstating some reports that were canceled last year due to budget constraints: the July Cattle report and County Estimates for Crops and Livestock.
The Biden administration’s decision to cancel the reports was criticized by major ag groups, including the American Farm Bureau Federation, National Cattlemen's Beef Association and National Grain and Feed Association.
Farm machinery giant joins biofuel group
John Deere has joined the biofuel trade association Growth Energy as a premium associate member.
Growth Energy represents a large swath of the ethanol space, including biorefineries and various groups tied to the biofuel economy. It advocates for issues like year-round E15, extending a “pro-growth” 45Z tax credit for clean fuel producers and more.
“Renewable fuels like corn ethanol deliver clear benefits by enhancing energy independence, reducing prices at the pump, and lowering emissions, all of which are made possible by our farmer customers,” said Cory Reed, president of the Worldwide Agriculture & Turf Division for Production and Precision Agriculture at John Deere.
Comment period ends for USDA biofuel feedstock rule
Clean fuel groups have shared mixed views with USDA on its interim rule for climate-smart agriculture guidance. The guidance is intended to support the new 45Z tax credit for clean fuel producers.
The comment period on USDA’s interim rule for counting emissions tied to biofuel agricultural feedstocks and the Feedstock Carbon Intensity Calculator closed just before midnight Tuesday. The docket shows 113 comments were submitted since the interim rule was published in January.
National Oilseed Processors Association celebrated some expansions on climate-smart ag in the interim rule from previous biofuel credits, such as eliminating bundling requirements for practices. However, the group pushed USDA to make more crops eligible for biofuel feedstocks — for example, spring and winter canola, carinata, camelina and pennycress.
Ethanol groups like Renewable Fuels Association pushed for a book-and-claim accounting system; former Ag Secretary Tom Vilsack had said there wasn’t enough data to support including it in the interim rule. RFA also argued for including enhanced efficiency fertilizers as an eligible practice in the final rule.
American Coalition for Ethanol pushed for fully integrating the USDA guidelines on feedstocks into the 45Z credit and other clean fuel programs. They also stressed the importance of USDA collaboration with the Treasury Department on the existing infrastructure and verification system that farmers already trust and rely on.
Ranchers re-up calls for lamb and mutton tariffs
A group representing U.S. ranchers has revived its push to secure relief from what it calls “uncontrolled” lamb and mutton imports.
R-CALF wrote to Commerce Secretary Howard Lutnick this week to call for an investigation into the threat imports pose to U.S. national security. CEO Bill Bullard argued that the U.S. military needs a domestic source of wool, lamb and mutton to preserve “the United States’ readiness in times of crisis.”
The group is calling for higher tariffs, establishment of a tariff-rate quota system to control imports, and the elimination of special duty rates.
The group had also asked the Biden administration to investigate injury to domestic producers from imported products, particularly those from Australia and New Zealand. However, the previous administration did not act on this.
USDA to hold webinar on poultry biosecurity initiative
USDA is holding a webinar today to explain how poultry producers can request biosecurity assessments, part of the department’s recently announced efforts to combat the bird flu.
The Animal and Plant Health Inspection Service “will prioritize assessments at commercial egg-laying facilities in the highest egg-producing states.”
The agency will conduct wildlife biosecurity assessments and recommend measures to control wild birds and other animals that may be carrying the bird flu virus. Another type of assessment will focus on facilities outside control areas for highly pathogenic avian influenza.
USDA will share up to 75% of the costs to fix the highest risk biosecurity concerns identified by the assessments.
Producers can sign up for the webinar here.
Final word
“I think that … one of the things we all need to rally around is coming up with standardized terms.” – Natasha Pernicka, executive director of The Food Pantries for the Capital District, during a webinar on “Food as Medicine.”
Pernicka said the “Food as Medicine” movement is still in its infancy, where people are excited about it but need to build from lessons learned and research to create a more standardized model.
“We really believe strongly that in order for things to become a medical intervention that is paid for by health care, it needs to be standardized,” Pernicka continued.
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