SSGA chairman addresses White House Office of Outreach and National Economic Council

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Rob Prather, SSGA chairman and chief strategic ambassador for Global Processing of Kanawha, Iowa, represented all exporters in the container crisis when he commented to the White House that the Ocean Shipping Reform Act, introduced by Sens. Klobuchar (D-Minn.) and Thune (R-S.D.), as well as an associated version that had previously passed the House of Representatives, would help his business.

After some easing of the availability of containers in the runup to Christmas, Prather said things have tightened again. Exporters in the region report being told that they couldn’t get a booking for six weeks.

That’s why reforming the Ocean Shipping Act is so important. Prather said helping third parties file complaints can bring more action and having companies report their empty containers will help understand if a company is shutting down a market for returns or making some supply available. The Federal Maritime Commission (FMC) needs to be able to have a streamlined review of complaints, not a drawn-out process subject to brinksmanship. They need more resources to pursue complaints and then act to prevent detention/demurrage bills or unexpected fees from sinking a deal.

Right now, regional exporters report working at as little as 60 percent capacity, during the peak season for exports.

The high-value grains and oilseeds market depends on on-farm storage. If a crop isn’t moved from storage in the bins, it stays on the farm. This is about food security, and those of us in the rural United States who connect with and feed the foreign customer should not be left out. This is about the United States being a reliable supplier. All those ideas are in doubt or more difficult today.

The global container shipping crisis will be discussed at Transportation Go! March 3-4 in Milwaukee, where FMC Chairman Dan Maffei and other leaders in the agricultural supply chain will gather for in-depth discussions about the global supply chain and how it affects the vital movement of agricultural products both domestically and around the world. It will be an opportunity for attendees to weigh in on solution-seeking ideas and identify priorities. More information is available at www.transportationgo.com.

SSGA signs letter to Congress on COVID-19-related legal liability

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SSGA signed onto a letter drafted by the National Association of Manufacturers (NAM) urging Congress to act to ensure that essential businesses operating to support our nation’s response to COVID-19 are not subject to frivolous lawsuits.

The NAM letter is a targeted and carefully constructed approach that is designed to generate bipartisan support. The organizations that signed the letter represent millions of Americans working in essential industries that have been called upon to continue operating to support our nation’s response to the COVID-19 crisis. Yet, because they have remained operational during times of legal uncertainty, they risk becoming the targets of coronavirus-related lawsuits. Congress must act to ensure that such misguided litigation does not derail our recovery.

The letter was delivered to Capitol Hill Monday. View the letter here.

SSGA leads way in delaying Japan phytosanitary certificate

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In lieu of person-to-person meetings in Washington, D.C., the Specialty Soya and Grains Alliance (SSGA) board used technology to hold their board meeting and visit various federal regulators April 6-7.

SSGA met with U.S. Department of Agriculture (USDA) staff in the Foreign Agricultural Service (FAS), Federal Grain Inspection Service (FGIS) and Animal and Plant Health Inspection Service (APHIS) departments to discuss SSGA’s programs as well as Japanese market access issues. During these meetings, officials announced they received official communication from the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) confirming the delay of the Japan phytosanitary requirement set to be implemented June 1.

In the past few months, SSGA led the way by documenting examples from its member companies to USDA about the difficulties of certifying under current practices and complying with Japan’s request.

“This move gives us the breathing room we need to work with USDA to find a cost-effective, fair way to create these new certificates,” says Todd Sinner, chair of SSGA’s food grade action team and partner at SB&B Foods, Inc. “This June 1 deadline was really an April deadline because our companies were starting to do as directed and fulfill the phyto requirement. It’s too big of a risk – if we get a rejection it can cost thousands in losses.”

Although Japan has not announced new dates for the implementation, SSGA will continue to pursue long-term solutions with APHIS, other agencies and industry partners from across the spectrum of U.S. agriculture.

“The whole industry needs to pull together,” says SSGA Executive Director Eric Wenberg. “Passing the regulatory or administrative reform in the United States needed to comply with Japan’s requirement will take a lot of effort. We can pursue solutions together. Identity-preserved (IP) field crop shipments are low-risk inputs to food manufacturing and we need to send them to customers with as much efficiency as possible.”

To get a phytosanitary certificate for these shipments, a sample inspection from FGIS officials would be necessary, which would incur fees from the official traveling, often to rural and remote areas, to take the sample; but also indirect costs and inefficiencies, such as managing the phyto certificates, missing scheduled shipments waiting on a sample to be taken and infrastructure updates.

“Our customers trust us and are satisfied with the current inspections and certifications we go through to ensure they’re receiving the purest product,” says Curt Petrich, SSGA chair and president of HC International in Fargo, N.D. “It’s important that SSGA works for its members to either exempt IP crops from this inspection requirement or develop solutions with APHIS to improve the process of obtaining a phytosanitary certificate.

SSGA’s meetings with FAS officials detailed SSGA’s use of the Agricultural Trade Promotion (ATP) grant funding and SSGA’s recent additional attention to expanding market development opportunities for specialty grains.

“We had three great meetings with various officials that helped us plan our next steps. We’ve realized the potential change here is the process of obtaining a phytosanitary certificate, not about the need for the certificate,” Petrich says. “Our next step is to give Japan a suggested date for the delay. The IP industry needs a delay of 12 to 18 months to implement the infrastructure to accommodate their request. It’s not time to quiet the conversation.”

 

Trade winds blowing; Eric Wenberg talks SSGA’s mission with Gov. Tim Walz

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By Eric Wenberg, executive director

I had the privilege to attend MN AG EXPO last week near the Specialty Soya and Grains Allliance’s (SSGA) home in Mankato. To a person, the farmers I met were concerned about trade and weather. The two can seem like the same thing sometimes. Is it climate change or not? Is it just hot or cold today? Well, we want a little heat on the administration right now on trade. Market access for non-GMO and organic field crops are still subject to unfair labeling challenges that hold up your sales to China, as the issue was left out of the “Phase One” negotiations, finalized recently. SSGA has been in touch to raise your hope that the trade restricting domestic rules will be lifted during the next round of talks. We have trade deals with Japan, along with the USMCA, that are important to growers; however, there were nine other countries we could have traded with through the Trans Pacific Partnership (TPP), and we need the administration to do all they can to get further trade deals done.

Lower tariffs are important, but what we need is the best, scientific approach to phytosanitary and technical barriers to trade. We need vigor in talks with India. SSGA’s board will be in Washington, D.C., this spring to underscore those issues with agencies and legislators and their assistants on Capitol Hill. The farmers I spoke with at AG EXPO were grateful for the opportunity offered in the non-GMO or organic space with premiums, and welcomed information about our member companies working with corn, soy, and pulses in that area. There was interest in talking about identity-preserved (IP) practices and the need to support intermodal transportation. You have all heard me spout on about how a single container vessel can carry enough bananas to give everyone in America one or two. Container shipping touches all we eat and do. The toy train with shipping containers at our booth helped start the dialogue, and as members came by, I had to shuffle the containers just like port handlers do.

I also had the opportunity to speak one-on-one with Minnesota Gov. Tim Walz for a few minutes – thanks to the SSGA communications team pulling some strings and deftly pointing the governor to our booth. Gov. Walz gave support, and was interested in what it took to connect Minnesota to the globe. He left me in touch with his team, and I look forward to connecting with the governor in the future.

The IP hero of the week is Adam Geers at SSGA member company, MAC, in Michigan, who has been talking to state officials and anyone else under the sun about the upcoming new phytosanitary requirements in Japan, how they will differentially impact IP shippers worse than others and the urgent need for state and federal regulators to get behind a solution. SSGA will also be exhibiting at the Northern Corn and Soybean Expo Feb. 4 in Fargo, where we’ll continue to listen and educate.

Mr. Wenberg goes to Washington: SSGA executive director visits embassies, Capitol Hill

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Eric Wenberg, executive director of the Specialty and Soya Grains Alliance, visited two embassies last week in a flurry of meetings in Washington, D.C.

To start the week, Wenberg made a follow-up trip to the Embassy of Japan, his first since visiting the embassy during his first week on the job in March 2019. Japan has been a longtime consumer of U.S. soybeans. In 2017, the country imported more than $1 billion worth of whole soybeans and soybean meal. The purpose of the visit was to invite embassy officials to events in the future. Expect more news soon.

Later, Wenberg joined U.S. soy industry farmer representatives from the American Soybean Association, United Soybean Board, and state QSSBs in a meeting organized by the U.S. Soybean Export Council (USSEC) to learn more from USDA/Foreign Agricultural Service Deputy Administrator Mark Slupek about plans for the Agricultural Trade Program (ATP) 2.0. The soy industry received additional funding in the second tranche and SGGA also will receive a top up to assist its overseas marketing efforts. SSGA is currently activating its $1.5 million USDA grant with support from USSEC to complete a portal to connect soya and specialty grain exporters with clients through digital networking, brand the United States as a top origin for identity preserved soya and grains, and other international activities.

Northern exposure

Tuesday morning, Wenberg met with American Farm Bureau and the U.S. China Business Council to discuss resolution to the trade dispute with China. That afternoon, he visited the Canadian Embassy, and met with agriculture counselor Christine McKee. Both parties agreed on the need to pass the USMCA (aka the new NAFTA). Canada is the top agricultural exports for 28 U.S states. In total, U.S. agricultural exports to Canada have increased 46 percent over the past decade.

“We had a very productive conversation with Canada and learned more about the importance of trade between our two countries, especially in the agriculture sector,” Wenberg says. “We look forward to future meetings.”

Wenberg then met with staff from the U.S. House Agriculture Committee. He talked trade issues and the prospect of passing USMCA by the end of the year. Wenberg explained SSGA’s mission to the committee staff and highlighted the need for increased transportation upgrades. Since the trade war began last year, agricultural transportation costs are up about eight percent.

For his final meeting, Wenberg visited the headquarters of the Ag Transportation Coalition, where he met with Executive Director Peter Friedmann. Wenberg discussed the strides SSGA has made since its formation. Friedmann encouraged future partnership, and expressed his admiration for the new organization and received assurances from Wenberg that it will continue to devote time and effort to fix the problems faced when moving soya and grains from rural America with containers, and intermodal rail links. It’s a difficult business, both groups together are committed to improve.

“With the major exporters you have as members, your organization is very compelling,” Friedmann told Wenberg.

Wenberg says the two days of meetings proved productive for SSGA and its members.

“We are continuing to grow our membership base and these meetings are a vital part of the process of building SSGA and being a voice for identity preserved practices, better transportation and marketing support and analysis for specialty soya and grains,” Wenberg says.

SSGA staff participates in tariff and trade policy event with US Senators

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Senators James Lankford (R-OK) and Chris Coons (D-DE) came together June 13 to discuss their views on the use of tariffs as a leverage in trade disputes and negotiations, and their legislation, the Import Tax Relief Act. This was created as an exclusion process from tariffs on Chinese goods and is meant to provide relief to American consumers, farmers and firms impacted by the tariffs.

The event was sponsored by the Washington International Trade Association (WITA).

“I say that there is a place for tariffs but not every tariff has a place,” Lankford said. “Where are we trying to go with tariffs? We need progress, we don’t want reciprocal high tariffs with China.”

The Senators showed a bipartisan push to discuss trade and remedy the situation.

“We needed as a nation to go after China,” Coons said. “I’m concerned that tariffs are being used as a tool of economic political policy and it’s unjustified…The outcome of the next election won’t mean a thing, we are all together that China needs to improve its trade practices. Do a deal now.”

Panel discussion members, including Specialty Soya and Grains Alliance (SSGA) Executive Director Eric Wenberg, deliberated the effects of tariffs and trade policies on U.S. firms, farmers, workers and employers. Other panel participants included Laura M. Baughman, president of the Trade Partnership and Trade Partnership Worldwide, LLC, and Guy Harari, president of the Adisseo North & Central America.

The discussion was moderated by Nicole Bivens-Collinson, president of the International Trade and Government Relations, Sandler, Travis & Rosenberg, P.A.

Wenberg relayed SSGA’s focus as a farm-to-table solution for its members growing, loading and exporting identity-preserved (IP) products directly from rural America to destinations abroad.

“Our members face more uncertainty and cost with the transport of goods,” Wenberg said. “A significant market instability in container shipping adds cost and makes shipment bookings difficult. It’s hard enough to find an empty container to fill and schedule out of North Dakota, or Minnesota, or Ohio on a good day.”

Videos of the discussions are posted and can be viewed here.

Long-stalled disaster aid clears Congress

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The House on Monday finally cleared a $19.1 billion disaster aid package that will benefit farmers and communities who suffered from a series of natural disasters stretching back nine months.

The bill, which now goes to the White House for President Donald Trump’s expected signature, includes $5.5 billion in agricultural assistance.

The measure will provide payments to farmers hammered by hurricanes Florence and Michael in 2018 as well as to farmers whose stored crops were drowned by floods in May and still more growers who may be unable to plant their crops this spring because succession of storms that have soaked the nation’s heartland. Producers and communities affected by the wildfires in California last fall will be covered by the bill.

The House needed four tries to finally pass the bill, 354-58 Monday evening. The Senate passed the bill 85-8 on May 23, but House members were already leaving town at the time for their Memorial Day recess.

House leaders subsequently tried three times during pro forma sessions to pass the bill by a voice vote, but GOP conservatives objected to bringing the bill to a vote until the full House was back in session. A single House member can block a voice vote on a bill during a pro forma session.

The final bill had already been held up for months because of disputes between Democrats and the White House over spending for Puerto Rico and border security. Ultimately, Democrats got the funding they wanted for Puerto Rico and the border funding was omitted.

“Today we are rejecting the political stunts and grandstanding that have made it difficult to deliver much-needed disaster relief to families and communities across America,” House Appropriations Chairwoman Nita Lowey, D-N.Y., said ahead of Monday’s final vote.

The protracted negotiations were a blessing for farmers across the Midwest and northern Plains states that have been struggling to plant crops this spring. A change to the bill that was made before the Senate voted on it will allow USDA to supplement prevented planting insurance benefits.

As of Sunday, only 67% of the projected corn crop had been planted, well behind the average of 96% at this point, according to USDA’s National Agricultural Statistics Service. Some 39% of the forecast soybean crop was planted; the average is 79%.

House Agriculture Chairman Collin Peterson, D-Minn., said USDA plans to use the bill to boost prevented planting benefits to somewhere between the insurance limit, 55% for corn, and the 90% maximum allowed by the disaster bill. Farmers who didn’t buy crop insurance would get direct payments for up to 70% of the crop’s value.

The bill also will compensate cotton growers and other producers who lost crops to the hurricanes last fall as well as farmers whose stored corn and soybeans were damaged by flooding this spring.

One of the three Republicans who blocked an earlier vote on the bill, Texas Rep. Chip Roy, said he was still concerned that the legislation would add to the federal deficit. As is typical with disaster bills, there are no spending cuts or revenue increases to offset the cost of the emergency assistance.

“At some point, before it is too late, Congress will get serious about restraining out-of-control spending,” Roy said.