Tag Archives: United States

Farm and ranch production expenditures for Nebraska totaled $24.2 billion in 2018, up 7 percent from a year earlier, according to USDA’s National Agricultural Statistics Service. Livestock expenses, the largest expenditure category, at $8.09 billion, increased 28 percent from 2017. Feed, the next largest expense category at $3.10 billion, increased 3 percent from 2017. Rent, the third largest total expense category, at $2.44 billion, increased 2 percent from 2017.

Livestock expenses accounted for 33 percent of Nebraska’s total production expenditures. Feed accounted for 13, rent 10, and farm services 8 percent.

The total expenditures per farm or ranch in Nebraska averaged $528,105 in 2018, up 8 percent from 2017. The Livestock expense category was the leading expenditure, at $176,253 per operation, 7.69 times the national average. Rent expenditures, at $53,159 per operation, were 3.73 times the national average. The average feed expenditure, at $67,538, was 2.54 times the national average. Farm services expenditures per operation, at $43,791, were 2.01 times the national average.

These results are based on data from Nebraska farmers and ranchers who participated in the Agricultural Resource Management Study conducted by USDA’s National Agricultural Statistics Service. Producers were contacted in January through April to collect 2018 farm and ranch expenses.

 

2018 United States Total Farm Production Expenditure Highlights

Farm production expenditures in the United States are estimated at $354.0 billion for 2018, down from $357.8 billion in 2017 according to USDA. The 2018 total farm production expenditures are down 1.1 percent compared with 2017 total farm production expenditures. For the 17 line items, 7 showed an increase from previous year, while the rest showed a decrease.

The four largest expenditures at the United States level total $178.1 billion and account for 50.3 percent of total expenditures in 2018. These include feed, 15.2 percent, farm services, 12.5 percent, livestock, poultry and related expenses, 13.1 percent, and labor, 9.6 percent.

In 2018, the United States total farm expenditure average per farm is $175,169, down 0.4 percent from $175,935 in 2017. On average, United States farm operations spent $26,622 on feed, $22,911 on livestock, poultry and related expenses, $21,822 on farm services, and $16,775 on labor. For 2017, United States farms spent an average of $26,798 on feed, $21,193 on farm services, $20,455 on livestock, poultry, and related expenses, and $17,702 on labor.

Total fuel expense is $12.3 billion. Diesel, the largest sub component, is $8.1 billion, accounting for 65.9 percent. Diesel expenditures are up 8.0 percent from the previous year. Gasoline is $2.13 billion, down 3.2 percent. LP gas is $1.41 billion, up 0.7 percent. Other fuel is $660 million, down 17.5 percent.

The United States economic sales class contributing most to the 2018 United States total expenditures is the $1,000,000 – $4,999,999 class, with expenses of $113.3 billion, 32.0 percent of the United States total, down 2.2 percent from the 2017 level of $115.9 billion. The next highest is the $5,000,000 and Over class with $92.5 billion, up from $91.2 billion in 2017.

In 2018, crop farms expenditures decreased to $181.9 billion, down 1.5 percent, while livestock farms expenditures decreased to $172.1 billion, down 0.6 percent. The largest expenditures for crop farms are rent at $24.1 billion (13.2 percent of total), labor at $24.5 billon (13.5 percent), and farm services at $24.8 billion (13.6 percent). Combined crop inputs (chemicals, fertilizers, and seeds) are $53.2 billion, accounting for 29.2 percent of crop farms total expenses. The largest expenditures for livestock farms are feed at $52.3 billion (30.4 percent of total), livestock, poultry and related expenses at $44.2 billion (25.7 percent), and farm services at $19.3 billion (11.2 percent). Together, these line items account for 67.3 percent of livestock farms total expenses. The average total expenditure for a crop farm is $208,026 compared to $150,108 per livestock farm.

The Midwest region contributed the most to United States total expenditures with expenses of $104.7 billion (29.6 percent), down from $107.8 billion in 2017. Other regions, ranked by total expenditures, are the Plains at $91.7 billion (25.9 percent), West at $76.2 billion (21.5 percent), Atlantic at $45.0 billion (12.7 percent), and South at $36.3 billion (10.3 percent). The Midwest decreased $3.1 billion from 2017, which is the largest regional decrease.

Combined total expenditures for the 15 estimate states is $232.8 billion in 2018 (65.8 percent of the United States total expenditures) and $236.0 billion in 2017 (65.9 percent). California contributed most to the 2018 United States total expenditures, with expenses of $36.8 billion, (10.4 percent). California expenditures are down 2.7 percent from the 2017 estimate of $37.8 billion. Iowa, the next leading state, has $25.3 billion in expenses, (7.2 percent). Other states with more than $20 billion in total expenditures are Texas with $25.1 billion and Nebraska with $24.2 billion.

The United States will be able to nearly triple its annual duty-free exports of beef to the European Union (EU) over the next seven years under a new agreement signed today at the White House.

American ranchers will be guaranteed a bigger share of Europe’s beef market, with annual duty-free exports expected to grow from $150 million to $420 million when the agreement is fully implemented.

“American ranchers produce the best beef in the world. Thanks to President Trump’s leadership, this new agreement ensures that American ranchers can sell more of that beef to Europe,” said U.S. Trade Representative Robert Lighthizer, who signed the agreement with the Honorable Jani Raappana of Finland, representing the Presidency of the EU, and Ambassador Stavros Lambrinidis of the Delegation of the EU.

The new agreement negotiated by the Trump Administration establishes a duty-free tariff rate quota (TRQ) exclusively for the United States. Under the agreement, American ranchers will have an initial TRQ of 18,500 metric tons annually, valued at approximately $220 million. Over seven years, the TRQ will grow to 35,000 metric tons annually, valued at approximately $420 million.

Under the current agreement, U.S. duty-free beef exports to the EU are only approximately 13,000 metric tons annually, valued at approximately $150 million, and risked declines going forward.

Background
In 2016, the National Cattlemen’s Beef Association, U.S. Meat Export Federation, and the North American Meat Institute requested the U.S. Trade Representative to take tariff action under Section 301 of the Trade Act of 1974 to enforce the World Trade Organization dispute finding in favor of the United States against the EU’s ban on the use of hormones in cattle production. USTR held a public hearing on February 15, 2017.

Negotiations resulted in a new agreement, which was approved by the European Council on July 15, 2019. It will go into effect following the European Parliament’s approval, which is expected this fall. With the EU providing a country specific duty-free quota for U.S. beef, the United States has agreed as a part of the agreement signed today to conclude the proceedings under Section 301 of the Trade Act of 1974 initiated in December 2016.

 

Fischer Statement on U.S.-EU Beef Trade Agreement

U.S. Senator Deb Fischer (R-Neb.), a cattle-rancher and a member of the Senate Agriculture Committee, released the following statement after President Donald Trump announced a beef trade deal between the U.S. and the European Union (EU):

“The Beef State welcomes the news of this new trade agreement between the U.S. and the EU. Nebraskans produce some of the most high-quality and delicious beef there is and this deal marks another opportunity for our families, communities, and businesses. I look forward to continuing to work with this administration on opening more markets for our state’s hardworking ag producers.”

The trade deal announced today will allow the U.S. to export 35,000 tons of hormone-free beef to the EU per year.

 

Ricketts Praises President Trump’s EU Agreement to Increase Beef Exports

Today, Governor Pete Ricketts issued a statement following news that President Donald J. Trump signed a new deal with the European Union (EU), which will increase beef exports from the United States to the EU.

“For years, we have been working to increase the amount of beef Nebraska exports to the European Union,” said Governor Ricketts. “This agreement from President Trump presents a major growth opportunity for our state, and will help Nebraska build on our successes from the last 15 years. As we seize this great opportunity, I look forward to taking our message about Nebraska beef on the road during my trade mission to Germany this November.”

In 2005, only five percent of the U.S. beef entering the EU came from Nebraska. By, 2018, Nebraska’s share rose to 53%, and was valued at $124.3 million.

President Trump’s new deal will allow the U.S. to almost triple the amount of beef it is currently exporting. As the nation’s leader in commercial red meat production and a top three exporter of US beef, Nebraska agriculture stands to benefit greatly from the expansion of this marketplace.

In 2015, Governor Ricketts led a trade mission to the EU to promote Nebraska products.

 

Statement by Steve Nelson, President, Regarding European Union Deal on U.S. Beef

“President Trump’s announcement that the European Union will grant increased access to the European markets for U.S. beef is great news for Nebraska beef producers. Quality beef is in high demand in the European Union, particularly in countries like Germany and Italy. Today’s action will only boost opportunities for Nebraska beef producers to fill these markets moving forward.”

“Under the deal, U.S. farmers will ultimately be entitled to nearly 80 percent of the European Union’s quota on hormone-free beef over the next seven years. The quota is the result of a long-standing dispute between the two countries that led to several dispute settlement proceedings with the World Trade Organization that stem back to the European Union’s decades old decision to ban hormone-treated meat, despite overwhelming scientific evidence the product is safe for consumers.”

“Hopefully, today’s deal is a positive step in building relations to secure a bilateral trade deal with the European Union to open even greater access for U.S. agriculture products. Nebraska shipments of beef and beef products to the European Union ranged from $120-$143 million over the last five years. That’s between 40-50 percent of total U.S. shipments. With the agriculture economy struggling and the recent difficulties in trade negotiations with China, it’s critical we continue to grow agriculture market opportunities where we can.”

 

Secretary Perdue Statement on U.S. and E.U. Beef Agreement

U.S. Secretary of Agriculture Sonny Perdue issued the following statement after an agreement was signed between the United States and the European Union regarding beef trade between the two nations:

“Getting more US beef into the EU market is yet another example of President Trump expanding markets around the globe for our agriculture producers. EU consumers desire high quality products, and I have no doubt that when given the opportunity to purchase U.S. products we will see more Europeans choose to buy American. America’s farmers and ranchers are the most productive on earth and I thank President Trump and Ambassador Lighthizer for their continued work to promote the bounty of the American harvest across the world.”

 

USMEF Statement on Signing of U.S.-EU Agreement on Access for U.S. Beef

Today at the White House, U.S. Trade Representative Robert Lighthizer signed an agreement granting the United States a country-specific share of the European Union’s duty-free high-quality beef quota. U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom, who participated in the White House ceremony, issued the following statement:

This agreement provides more reliable and consistent access to the EU market and will be a tremendous boost for the U.S. beef industry. The agreement sends a very positive signal to customers in Europe who see a bright future for U.S. beef and to producers who are interested in expanding their non-hormone treated cattle (NHTC) business but have grown frustrated as they struggled to recover the additional production costs. USMEF greatly appreciates the tireless efforts of USTR and USDA to secure better access to this very high-value beef market.

Brazil is entangled in a diplomatic spat that could potentially damage a long-standing commercial relationship with Iran, which is the biggest buyer of Brazilian corn.

Seyed Ali Saqqayian, Iran’s ambassador to Brasilia, was quoted Wednesday in Iran’s semi-official Fars news agency saying that Tehran could reconsider imports from Brazil if it continues to refuse to refuel two Iranian vessels stranded there.

The ships have been waiting off the coast of the southern state of Parana since early June. Brazil’s state-run oil giant, Petrobras, has declined to supply fuel because it says the vessels are under U.S. sanctions and it would risk significant fines for doing so.

Brazilian President Jair Bolsonaro, who has sought closer ties with U.S. President Donald Trump, said he stood by the U.S.-backed sanctions on Iran.

“We’re aligned with their policy, so we do what we have to do,” Bolsonaro said over the weekend.

The consequences could be stiff if Brazil does not bow to pressure.

In addition to its imports of Brazilian corn, Iran is fifth largest buyer of beef and soybeans from the South American country. Brazil exported a total of $2.26 billion worth of commodities to Iran in 2018, according to official data.

A bilateral agreement between the countries also includes cooperation on matters such as energy, science and technology.

“Petrobras, which has shares in the U.S. market, doesn’t want to make any faux-pas,” said José Alfredo Graca Lima, a former consul-general of Brazil in New York and Los Angeles.

Eleva Quimica, the Brazilian company seeking to export Brazilian corn aboard the ships, contends that agricultural commodities are protected under a “humanitarian exception.”

The company recently sued Petrobras in Parana and won, but the issue is still being disputed in the courts.

Brazil’s ministry of foreign affairs said it was involved with the case, but did not provide further details.

An official, who spoke on condition of anonymity because they did not have permission to speak to the press, said Eleva Quimica had asked Brazil’s Supreme Court to force Petrobras to provide a list of other fuel providers that could help.