The U.S. is again trying to harden the U.S. trade embargo against Cuba. The trade embargo is called “el bloqueo” or “the blockade” by the Cubans and is basically a refusal to trade most goods with the country. President John F Kennedy placed the ag embargo on October 19, 1960.
In the past couple of years, the U.S. was starting to soften to Cuba and Illinois got particularly excited about the opportunity to trade with the country. Not only do they desperately need the food we could provide, but they are also a natural market for the U.S. being so close. AND, with Illinois positioned right on the Mississippi River, we are the natural, lowest cost provider to get food and grain to them.
But now, as the U.S. again begins to rethink trade with Cuba, Argentina and Brazil will be able to continue providing what the Cubans need, despite added transit time, higher freights and additional pest control costs.
Cuba is a 900,000 metric ton (35.4 million bushels) market for corn. Based on recent export sales, capturing this demand would make Cuba the 11th largest customer for U.S. corn. In addition, free flow of grain to Cuba would help capture sales to the Dominican Republic and even Puerto Rico, worth hundreds of millions of dollars per year.
Capturing the Cuban market wouldn’t change everything for Illinois corn farmers, but it would make an impact. And when corn prices are below the cost of production (and Cubans are starving for real food!), every little bit helps.
Read the full article here: http://www.grains.org/news/20170706/hot-topics-cuban-embargo-will-hurt-grain-trade-despite-continued-engagement
ICGA/ICMB Marketing Manager
How fitting! As we head into the new year, make sure you read this series to see what’s in store for farmers and their families!
[Originally published: January 19, 2016]
As a farmer’s wife I can’t tell you how many times I have answered the question “Where’s your husband?” when attending social functions by myself. Depending on the time of year, I typically respond with “in the fields… hauling grain… working cows… baling hay… in the shop…” etc. Farmers are just BUSY — All the time!
Some people think that the only busy times of the year are planting and harvest and the rest of the year farmers spend their glorious amounts of free time vacationing or tinkering with antique tractors. This may be true for some, but not the majority. I’m beginning a one-year series that will give you an idea of a farmer’s work load. Watch for my monthly article to stay up-to-date with what farmers might be up to at different times of the year. Keep in mind that all farms operate differently and I am just providing one example of a year in the life of a grain farmer. There are several factors that contribute to the seasonality of the farm such as size and scale of the operation, crops grown, location, livestock, management style and general upbringing or personal work ethic! I hope this provides some insight to what versatile businessman farmers are.
The agriculture fiscal year-end is December 31st meaning that January is a very busy month for bookkeeping and tax preparation. Farm taxes are due a little earlier than other individuals’: March 1st. Between now and then there will be several meetings with accountants to go through the business’s income and expenses from the prior year. Most farmers do not pay into incomes taxes through the course of the year, because there’s not regular paychecks to deduct taxes from. This means a (big?) payment to Uncle Sam is due by March 1st.
January is a big month for hauling last year’s stored grain to the local elevator. Up until now, the farmer may have been keeping last fall’s harvest in bins at his own farm. This saves him from paying a storage fee to the elevator for holding it there. The elevator constantly puts out corn prices for certain delivery months and at any time the farmer can call up his elevator to lock in a sale price for that month. The thing is, he doesn’t get paid until he delivers it to the elevator. This requires him to unload the grain out of his bins, put it into a semi or grain truck and drive it to the elevator.
For a lot of farmers, as soon as last year’s crop has been harvested, it’s time to start considering decisions that need to be made in preparation for next year’s crop. Depending on which fiscal year the farmer wants his expenses to go in, December and January are a prime time for deciding which field will be planted in what seed variety and locking in input costs like seed, fertilizer and chemicals. Many dealers offer discounts and the earlier you lock in their product/price the better the discount.
Ag groups host a lot of meetings in the winter because they know they’ll have better turnouts in the off-season. There will be association meetings, chemical training courses, annual reports from elevators and other co-ops, market outlook discussions and other industry-related get-togethers.
If anything’s been needing fixin’ now’s the time to finally get to it! Clean and organize the work bench. Sweep out the empty grain bins. Patch a bad spot in the barn. Make sure the generator is in good working condition. Get a load of gravel delivered for the lane. Rearrange the equipment in the shed so you can get the snow blower to hook onto the right tractor.
When you’re ready for a break from farm things, make sure to ask your wife what you can check off of her honey-do list… Then take her out to dinner because she’s been patiently waiting for this little breather as well! The closer planting season gets, the busier the farmer becomes!
Some people think that the only busy times of the year are planting and harvest and the rest of the year farmers spend their glorious amounts of free time vacationing or tinkering with antique tractors. This may be true for some, but not the majority. Today is the eleventh post in my one-year series which will give you an idea of a farmer’s workload throughout the year. Keep in mind that all farms operate differently and I am just providing one example of a year in the life of a grain farmer. There are several factors that contribute to the seasonality of the farm such as size and scale of the operation, crops grown, location, livestock, management style and general upbringing or personal work ethic! I hope this provides some insight to what versatile businessman farmers are.
Start at the beginning!
You’ll continue to get stuck behind slow-moving vehicles on rural roads throughout November, but at least visibility at stop signs improves with the corn and beans down. That’s right, harvest is (finally) wrapping up!
This year, USDA, NASS stated that harvest was at least 97% complete at Thanksgiving. What a relief for farmers and their families! With the crops out of the field, the Stewards of the Land were able to enjoy some much-needed family time around the dinner table giving thanks for the bountiful harvest!
Membership Administrative Assistant
After one of the longest, most surreal and arduous political campaigns in a generation, we have finally reached a conclusion. Donald Trump was elected the 45th President of the United States. This was one of the most divisive campaigns in history with more twist and turns and mudslinging than most people generally thought possible.
Republicans have retained control of both the House and Senate. The House of Representatives, as expected, will remain in Republican hands. The Republicans maintain at least 238 seats, with four more yet to be called.
From Illinois, all but one of the seats will remain in the hands of the incumbent party. The only new Member from Illinois is Raja Krishnamoorthi, an Indian American who will fill the 8th district seat vacated by Congresswoman Duckworth. Brad Schneider, who was formerly a Member, defeated Rep. Bob Dold to take back his old seat in a 10th district rematch.
The Senate will remain in Republican control with 51 votes. Control of the Senate went down to the wire, with a number of races too close to call. Senator Kirk, long viewed as the most vulnerable Senator, lost re-election last night to Congresswoman Tammy Duckworth. Duckworth has had a good relationship with agriculture in Illinois and has been supportive of the Renewable Fuel Standard and needed infrastructure improvements to our inland waterways.
Republicans will also continue to hold the majority of governorships across the country. Here are a few key statistics as of Wednesday morning:
Donald Trump’s campaign did not provide significant information on agriculture in the primaries or general election. Because of this, it is difficult to say what USDA priorities will be in a Trump Administration, as they did not make their positions well-known. He has vowed to rescind many of the regulations enacted by the Obama Administration, which could include the Clean Power Plan, the WOTUS rule, among others. Additionally, Trump’s anti-trade agreement message seems to have resonated well with many of his supporters. Look for a President Trump to either abandon the Trans-Pacific Partnership (TPP) or begin to negotiate a new trade agreement. He may also make efforts to change aspects of the North American Free Trade Agreement (NAFTA). Agriculture stakeholders should begin doing outreach to the new Trump Administration political appointees as they start to take their new positions.
Congress returns to Washington next week and will begin to address appropriations past December 9 and also hold leadership elections for the 115th Congress.
Some people think that the only busy times of the year are planting and harvest and the rest of the year farmers spend their glorious amounts of free time vacationing or tinkering with antique tractors. This may be true for some, but not the majority. Today is the tenth post in my one-year series which will give you an idea of a farmer’s workload throughout the year. Keep in mind that all farms operate differently and I am just providing one example of a year in the life of a grain farmer. There are several factors that contribute to the seasonality of the farm such as size and scale of the operation, crops grown, location, livestock, management style and general upbringing or personal work ethic! I hope this provides some insight to what versatile businessman farmers are.
Start at the beginning!
Harvest is in full swing! If you’re married to a farmer (like me), or have many farmer friends, you KNOW you won’t be seeing much of him or her this time of year. Even once they’re done cutting corn or beans, farmers are still up early and out late this month.
Enjoy this beautiful season and be thankful for all that is sown, Happy Harvest!
Here in Illinois, the harvest is in full swing. Over in western Illinois, it seems as though there isn’t much left to be harvested. Most of the corn and beans are gone, and it seems like everyone can take a small sigh of relief…for now.
However, for me, I’m sad that it’s all coming to an end. Sure, I’m glad it’s over because that means my dad gets to enjoy a less stressful Dad’s Weekend at the University of Illinois with me, but the harvest is easily one of my favorite times of the year. The picture below is one that I shot coming home from the University of Illinois a couple of weeks ago. Sometimes we can take this harvest for granted, but if you look a little closer at the photo, there’s a story to tell. So here are five things about this photo!
TPP stands for Trans-Pacific Partnership. The TPP creates rules and agreements for trade all over the world. The amount of tax on imports and exports and other regulations for countries are laid out in this agreement. A review of the effects that the TPP will have on agriculture in the United States can be read in full here.
2. What will the TPP do for United States Agriculture?
The implementation of the TPP will increase cash receipts for livestock. What this means is that the United States will trade more livestock products to other countries, increasing income from what we get from these goods now. This estimated raise in livestock exports pairs well with the expected decrease in the country’s trade of corn. This is because we will be able to keep that corn in the country and use it to feed the higher number of livestock that we are growing for trade. This use of corn is adding more value to the industry than it would if it was simply traded in bulk. Also, the overall farm income is expected to increase $4.4 billion for the country which is a very positive result for agriculture.
3. What will the TPP do for Illinois Agriculture?
As the deal increases cash receipts for the entire country, it would also do great things for Illinois agriculture. The chart shown explains that cash receipts for many Illinois products increase greatly with implementation of the TPP. This increase in income also comes with an estimated 960 jobs into the Illinois economy, according to the American Farm Bureau Federation. Corn is the biggest agriculture industry in Illinois and the exports from the country are expected to decline; however, Illinois is a perfect example of how that corn that is not being exported can be used to raise livestock. The TPP will also increase overall trade for other Illinois products such as pork, soybeans, and processed foods.
This trade deal is a big step for agriculture and the economy of the country. The American Farm Bureau Federation stresses the importance of the United States getting on board with the deal quickly. Other countries are ahead of the United States in making trade agreements that could help their economies.
There will soon be more news on the ratification of this in the United States.
Any questions? Ask in the comments!!
Illinois State University