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Federal Reserve: Observations on the Ag Economy- August 2018

Since the last report, weekly comparisons indicated lower commodity cash prices for some recently tariffed agriculture exports such as soybeans, and the USDA has announced a financial relief program for affected agriculture producers. Sixth District- Atlanta– “Agriculture conditions across the District continued to be mixed. Drought conditions were little changed from the previous report; most of the District remained drought free although there were reports of abnormally dry conditions in much of Louisiana and in parts of Mississippi and Alabama. [node:read-more:link]

Tariffs Hit Fruit Growers Hard at Harvest

Ray Norwood, Director of Sales and Marketing for Auvil Fruit Co., told the news outlet the operation had to lower prices and find alternative destinations for the cherries. Auvil Fruit Co. exports about 80% of the operations’ cherries. Apple growers are equally nervous about the harvest season this year, with China imposing stiff tariffs on U.S. goods including fruits and nuts in retaliation to a U.S-imposed tariffs on imported goods from China.Tariffs on 10 fruit and tree nut exports are expected to cost U.S. [node:read-more:link]

Tariffs will cost U.S. dairy farmers $1.5B this year

A study by Informa Economics found retaliatory tariffs by China and Mexico will reduce U.S. dairy farmer revenue by $1.5 billion in 2018 and $3 billion in 2019 if they remain in place.While U.S. dairy producers appreciate USDA’s plan to purchase dairy products and increase funding to develop foreign markets in its tariff-mitigation strategy, they say the agency’s plan to distribute $127 million in direct payments to dairy producers falls far short of what’s needed. [node:read-more:link]

Economists say ERS move penny-wise, dollar-foolish

The American Statistical Association and 41 other economic institutes have issued a statement saying USDA’s decision to move the Economic Research Service out of Washington, DC, will drive a brain drain from a vital research component in the nation's $1 trillion food, agriculture, and rural economy. [node:read-more:link]

USDA, FDA to hold joint meeting on cell culture technology

The topic of cell culture technology and the products produced from it is a controversial one throughout the industry as well as in Washington. US Secretary of Agriculture Sonny Perdue and US Food and Drug Administration Commissioner Scott Gottlieb on Sept. 10 announced a joint public meeting Oct. 23-24 to focus on the potential hazards, oversight considerations, and labeling of cell cultured food products derived from livestock and poultry. The public meeting will be held on Oct. 23 from 8:30 a.m. to 4 p.m., and Oct. 24 from 8:30 a.m. to 3 p.m. [node:read-more:link]

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