RFD News & Views

By Tim Alexander For Chronicle Media

We can’t avoid the 8,000-pound elephant in the room any longer, so this week’s column will focus on tariffs and agricultural trade. You will also find valuable information on how to receive daily news updates about tariff and trade issues from WILLAg.org.

IPPA leader: Tariffs hit pork markets

SPRINGFIELD – We had a chance to talk to Jennifer Tirey, executive director of the Illinois Pork Producers Association, about her recent participation in a trade mission to Mexico City, with Gov. J.B. Pritzker, Lt. Gov. Juliana Stratton and other Illinois agriculture leaders.

The March 30-April 2 mission allowed the state’s ag commodity groups to have conversations with more than 100 product buyers from more than 50 major Mexican companies.

Tirey said she found many of the buyers remained concerned about the possible effects of ramped-up U.S. tariffs on Mexican products (currently holding at 25 percent) and the potential for retaliatory tariffs on U.S. imports to Mexico. With Chinese retaliatory tariffs currently at 125 percent (at press time) on American imports, she hopes to preserve more of the existing markets for U.S. pork, including Mexico, while actively seeking new markets.

“The retaliatory tariffs are the biggest concern, with the largest being China. We’re really grateful that there were no further U.S.-Mexico-Canada tariffs announced last week; that is very positive for our relationship with Mexico. The tariffs are making it harder to maintain our market share,” Tirey said, adding that IPPA and the National Pork Producers Council are working with the U.S.

Department of Agriculture Foreign Agriculture Service and U.S. Meat Export Federation to explore future markets for pork.

“They are always helping us look for potential markets that we can move our product into. We’re able to utilize the USDA-FAS funding match dollar for dollar to try to continue to expand exports, so there’s never been a moment we’ve taken a pause on trying to find new markets,” she said.

Several Illinois state legislators also made the trip to Mexico, at the conclusion of which a memorandum of understanding for trade was renewed for the first time since the 1990s.

In total, 82 members comprised the Illinois delegation to Mexico City, according to Tirey.

“There was a lot of synergy on a lot of topics that I think will be of benefit to the pork industry back home,” she said.

Trade mission lambasted

SPRINGFIELD – Among the dozens who accompanied Gov. J.B. Pritzker on his recent trade mission to Mexico were five Democratic state lawmakers.

Predictably, state Republican leaders lambasted the effort, calling it a distraction and waste of taxpayer funds.

“Here he’s leaving to Mexico. Seriously? With a lot of heavies in our state, right, on the taxpayers’ dime,” Illinois Republican Party Chair Kathy Salvi said, adding that it’s irresponsible for Pritzker to make the trip when he’s driven businesses out of Illinois. “I don’t have to remind you that in the last few years, under his leadership, we’ve lost Caterpillar, Citadel, Boeing, Tyson Foods, Guggenheim Partners, and TTX. That just scratches the surfaces. Many, many smaller businesses have shuttered and families are moving out of Illinois in droves.” (thecentersquare.com)

NCGA president: USDA still working for farmers

WATERLOO – During a brief conversation with National Corn Growers Association President Ken Hartman last week, we had an opportunity to ask the Waterloo, Ill. farmer what he thinks of the job Brooke Rollins is doing as U.S. agriculture secretary.

“We’ve met with her and with people in her office. We feel like we’re working to be heard, and I think her and her staff are all trying to catch up. It’s going to take some time, but she’s been reaching out to us and we’ve been reaching out to them. I think we’ve got some good people in the USDA within the organization, and I’m hoping we can build that relationship,” Hartman said, adding that African nations and the Philippines also present export growth opportunities for U.S. and Illinois corn.

“The Illinois Corn Growers Association and the NCGA are all about creating demand,” he continued. “The last few years, economically, we’ve had a lot of issues. We’re looking at a $160 per acre production loss this year if prices stay where they’re at. We’ve been in a slump and we definitely need some things to bring us out of that slump, and the way we do that is markets.”

Hartman said the USDA could help corn growers establish new export markets in Vietnam and India to help spark demand and sales growth for U.S. corn. He also would like to see both the House and Senate pass bills in front of them that would authorize year-round availability of E-15 ethanol in filling stations across the nation, in order to stimulate domestic demand.

Keeping up on tariff news

URBANA – With the trade whims of the president of the United States changing on a near-daily basis, it’s important to have a reliable and truthful media source to utilize for the latest tariff updates.

Todd Gleason of WILLAg.org recently published a refresher on what the University of Illinois-based radio and online news source provides, and how to receive the latest tariff news.

“WILLAg.org is home to University of Illinois Extension radio programming produced in cooperation with Illinois Public Media. It includes daily radio programming from the 8:55 a.m. Opening Market Report to the Commodity Market Summary at 4:32 p.m. These all air on WILL-AM 580 which can be tuned in across much of the states of Illinois and Indiana. The website, WILLAg.org, also has much of the programming. It also includes a combined Illinois Extension farm news feed from the crop scientists, ag economists, and animal scientists on campus and in the field,” Gleason stated. “Please visit the website to add the Commodity Week and the Closing Market report to your podcasts player.”

Commodity Week is released Thursdays at 6 p.m. and airs on WILL-AM Friday afternoons during the 2 p.m. hour. Recently, a panel of commodity analysts reviewed USDA reports and the latest tariff news.

Illinois Farm Fact: Illinois exports around $1.7 billion in corn and $2.58 billion in pork to Mexico. (various sources)

Tim Alexander is a freelance writer.