Tag Archives: Farmers

Monsanto, BASF weed killers strain U.S. states with crop damage complaints

Monsanto's research farm is pictured near Carman, Manitoba, Canada on August 3, 2017.

By Tom Polansek

CHICAGO (Reuters) – U.S. farmers have overwhelmed state governments with thousands of complaints about crop damage linked to new versions of weed killers, threatening future sales by manufacturers Monsanto Co and BASF.

Monsanto is banking on weed killers using a chemical known as dicamba – and seeds engineered to resist it – to dominate soybean production in the United States, the world’s second-largest exporter.

The United States has faced a weed-killer crisis this year caused by the new formulations of dicamba-based herbicides, which farmers and weed experts say have harmed crops because they evaporate and drift away from where they are applied.

Monsanto and BASF say the herbicides are safe when properly applied. They need to convince regulators after the flood of complaints to state agriculture departments.

The U.S. Environmental Protection Agency (EPA) last year approved use of the weed killers on dicamba-resistant crops during the summer growing season. Previously, farmers used dicamba to kill weeds before they planted seeds, and not while the crops were growing.

However, the EPA approved such use only until Nov. 9, 2018, because “extraordinary precautions” are needed to prevent dicamba products from tainting vulnerable crops, a spokesman told Reuters in a statement last week. The agency wanted to be able to step in if there were problems, he said.

Next year, the EPA will determine whether to extend its approval by reviewing damage complaints and consulting with state and industry experts. States are separately considering new restrictions on usage for 2018.

Major soybean-growing states, including Arkansas, Missouri and Illinois, each received roughly four years’ worth of complaints about possible pesticide damage to crops this year due to dicamba use, state regulators said.

Now agriculture officials face long backlogs of cases to investigate, which are driving up costs for lab tests and overtime. Several states had to reassign employees to handle the load.

“We don’t have the staff to be able to handle 400 investigations in a year plus do all the other required work,” said Paul Bailey, director of the Plant Industries division of the Missouri Department of Agriculture.

In Missouri, farmers filed about 310 complaints over suspected dicamba damage, on top of the roughly 80 complaints about pesticides the state receives in a typical year, he said.

Nationwide, states launched 2,708 investigations into dicamba-related plant injury by Oct. 15, according to data compiled by the University of Missouri.

States investigate such complaints to determine whether applicators followed the rules for using chemicals. Those found to have violated regulations can be fined.

Monsanto has said that U.S. farmers spraying this past summer failed to follow detailed instructions of up to 4,550 words printed on labels.

The companies will change usage instructions in hopes of avoiding a repeat of the past summer’s problems.

“With significant adoption and a lot of interest in this new technology, we recognize that many states have received a number of reports of potential off-target application of dicamba in 2017,” Monsanto spokeswoman Charla Lord said last month.

 

PHOTOGRAPHING DAMAGED SOYBEANS

State investigators try to visit fields within days after farmers report possible damage to take photos before signs of injury, such as cupped leaves on soybean plants hit by dicamba, disappear. They question farmers and the people who applied the herbicide, and often gather samples from plants to test.

In Arkansas, farmers filed about 985 complaints associated with dicamba, the most of any state. Investigators are probing about 1,200 total complaints involving pesticide use, which includes weed killers, said Terry Walker, director of the Arkansas State Plant Board.

Arkansas delayed inspections of animal feed and allowed overtime to handle the dicamba cases, which is not normal practice, Walker said. He was unable to provide a cost estimate for dealing with the complaints.

Among the farmers who reported damage was Reed Storey, who said he wanted to ensure state officials knew dicamba caused damage even when users follow the instructions.

“I’m calling strictly to let y’all know that we have an issue with this product,” Storey, who spoke last month, said he told Arkansas regulators.

Illinois received about 421 total pesticide complaints, the most since at least 1989, said Warren Goetsch, acting chief of the Bureau of Environmental Programs at the Illinois Department of Agriculture. That includes at least 245 complaints associated with dicamba, which could take until next year to finish investigating, he said.

“It’s frustrating I think for us that we’re as behind as we are,” Goetsch said.

 

MONSANTO’S BIG BET

Monsanto is betting on dicamba-tolerant soybeans to replace those that withstand glyphosate, an herbicide used for decades but which is becoming less effective as weeds develop resistance. The company aims for its dicamba-resistant seeds to account for half the U.S. soybeans planted by 2019.

Monsanto, which is in the process of being acquired by Bayer AG  for $63.5 billion, said it plans to open a call center to help customers use dicamba next year and is talking with states about the product.

Monsanto’s net sales increased $1.1 billion, or 8 percent, in fiscal year 2017 due partly to increased sales of its dicamba-resistant soybean seeds.

The company and BASF already face several lawsuits from farmers alleging damage to plants from dicamba used by neighbors.

 

ANALYZING PLANT SAMPLES

The EPA provides grants to states that help fund investigations into pesticide damage and this year offered 35 states extra assistance analyzing plant samples for dicamba, according to the agency.

Minnesota and Illinois turned to the EPA for help, with the latter saying the federal agency has better equipment to detect low levels of dicamba.

In Iowa, the state’s laboratory bureau received 515 samples to test this year, up 35 percent, as dicamba use helped drive up the total number of pesticide complaints to 270 from a typical range of 70 to 120, according to the state. Each test costs up to $9.

“We are really anxious to flip the page and look ahead to 2018 and try to figure out the things that can be done to improve the situation,” said Mike Naig, deputy secretary of the Iowa Department of Agriculture and Land Stewardship.

 

(Reporting by Tom Polansek; Editing by Jo Winterbottom and Matthew Lewis)

 

U.S. farm lobby turns up heat on Trump team as NAFTA talks near

FILE PHOTO - U.S. Trade Representative Robert Lighthizer speaks during a ceremony at the White House in Washington, U.S. on May 15, 2017. REUTERS/Kevin Lamarque/File Photo

By Richard Cowan

WASHINGTON (Reuters) – With talks to renegotiate the NAFTA trade pact just weeks away, U.S. farm groups and lawmakers from rural states are intensifying lobbying of President Donald Trump’s administration with one central message: leave farming out of it.

Trump blames the North American Free Trade Agreement – the “worst trade deal ever” in his words – for millions of lost manufacturing jobs and promises to tilt it in America’s favor.

But for U.S. farmers the 23-year old pact secures access to stable, lucrative markets in Mexico and Canada that now account for over a quarter of U.S. farm exports. (Graphic: http://tmsnrt.rs/2tNMtlc)

Now they fear this access could become a bargaining chip in efforts to get a better deal for U.S. manufacturers.

“Perhaps some other sectors of our economy are given better terms and in exchange for that agriculture tariffs would be reintroduced,” said Joe Schuele, a spokesman for the U.S. Meat Export Federation in Denver, Colorado.

Another concern is that the mere uncertainty of open-ended trade talks could drive Mexico to alternative suppliers of grains, dairy products, beef and pork.

Mexico became even more crucial after Trump’s pullout from a vast Pacific Rim trade pact negotiated under Barack Obama dashed farmers’ hopes of free access to more markets.

Next week, U.S. Trade Representative Robert Lighthizer is due to outline the administration’s goals for the NAFTA talks to Congress and the farm lobby has turned up the heat in the past weeks to ensure that its interests will make Lighthizer’s list.

Operating under the umbrella of the U.S. Food and Agriculture Dialogue for Trade, more than 130 commodity groups and agribusiness giants since Trump’s inauguration have been bombarding the new administration with phone calls and letters, public comments to USTR and face-to-face meetings with top officials who have Trump’s ear.

“Our first ask is to do no harm,” said Cassandra Kuball, the head of the umbrella group.

Lobbyists said that Lighthizer, Agriculture Secretary Sonny Perdue and Commerce Secretary Wilbur Ross have been receptive, but the wild card is how Trump ultimately will come down on the talks. They also wonder what concessions Mexico will seek from Washington in the talks due to start in mid-August.

Among the groups involved are the American Soybean Association, Corn Refiners Association and National Grain and Feed Association and firms such as Land O’Lakes, Inc., Tyson Foods<TSN.N>, Inc., Louis Dreyfus Company North America, Archer Daniels Midland Co. and others.

For example, U.S. cotton producers, marketers and shippers in mid-June warned the Trump administration that any weakening of NAFTA “would threaten the health of the U.S. industry and the jobs of the 125,000 Americans employed by it.”

QUADRUPLING EXPORTS

Annual U.S. farm exports to Mexico have grown from about $4 billion in 1994, when NAFTA began, to an estimated $18.5 billion this year. With Canada included, that number is forecast to reach $40 billion, quadrupling under NAFTA.

Republican lawmakers from rural states that have backed Trump in the 2016 election have sought to leverage their political clout to press farmers’ case at a time when they struggle with low crop prices.

Pat Roberts, Republican senator from Kansas, who chairs the Senate Agriculture Committee, said he used an unexpected invitation for a private White House meeting with Trump to plug in agriculture’s cause in NAFTA and beyond.

“He (Trump) wanted to know what was happening in farmland,” Roberts said. “I told him we went through a very rough patch and if we did not have a strong, robust, predictable trade policy, it’s going to make life much more difficult in farm country,” Roberts said of the 45-minute meeting in late June.

In May, 18 Republican senators, mainly from pro-Trump farming states, wrote the administration about the “tremendous growth” in U.S. trade with Mexico and Canada as a result of NAFTA.

“Efforts to abandon the agreement or impose unnecessary restrictions on trade with our North American partners will have devastating economic consequences,” they warned.

Trump’s pledges to crack down on immigration and calls for a wall along the border with Mexico also vex farm state lawmakers.

“What I really need is a good, solid immigration system,” South Dakota Republican Senator Mike Rounds said. Given his state’s low unemployment rate of just around 2.8 percent, farmers and ranchers need better access to legal foreign labor, he said.

STORM OVER SUNNY SLOPE

Agriculture Secretary Perdue got a taste of farmers’ angst when met cattle ranchers in Nebraska on May 20. The event was held shortly after Washington agreed with China to resume beef exports, but some 60 ranchers who gathered at U.S. Senator Deb Fischer’s Sunny Slope Ranch quickly turned to NAFTA.

“If the president wants to renegotiate that agreement with our neighbors and partners in Mexico and Canada please leave the ag portion of that discussion out,” said Pete McClymont, executive vice president of Nebraska Cattlemen, summarizing the discussion.

While lobbying in Washington, some Republican lawmakers have also met with Mexico’s ambassador and U.S. farming representatives traveled south to assure their partners unsettled by Trump’s “America First” mantra.

“The common comment is: ‘why are you here? The problem is not with us. The problem is in Washington. Why are you talking to us?'” said Tom Sleight, president and CEO of the U.S. Grains Council. “The new normal is that feed buyers, millers, grain buyers are actively looking at alternative sources,” he said.

It will take months to find out how effective the lobbying was. Meantime, some are willing to give Trump the benefit of the doubt.

Daryl Haack, a corn and soybean farmer from Primghar in northwest Iowa, like others fears retaliation from either Canada or Mexico, but is optimistic it will not come to that.

“I think President Trump is a negotiator,” he said. “I think he runs bluffs. A lot of negotiators will do that.”

(Reporting By Richard Cowan, Additional reporting by Mark Weinraub, Karl Plume and Theopolis Waters in Chicago; Editing by Caren Bohan and Tomasz Janowski)

Trump reassures farmers immigration crackdown not aimed at their workers

Migrant farmworkers with H-2A visas walk to take a break after harvesting romaine lettuce in King City, California, U.S

By Mica Rosenberg and Kristina Cooke

WASHINGTON/SAN FRANCISCO (Reuters) – President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry and its largely immigrant workforce, according to farmers and officials who met with him.

At a roundtable on farm labor at the White House last month, Trump said he did not want to create labor problems for farmers and would look into improving a program that brings in temporary agricultural workers on legal visas.

“He assured us we would have plenty of access to workers,” said Zippy Duvall, president of the American Farm Bureau Federation, one of 14 participants at the April 25 meeting with Trump and Agriculture Secretary Sonny Perdue.

During the roundtable conversation about agriculture, farmers and representatives of the sector brought up labor and immigration, the details of which have not been previously reported. Some farmers told Trump they often cannot find Americans willing to do the difficult farm jobs, according to interviews with nine of the 14 participants.

They said they were worried about stricter immigration enforcement and described frustrations with the H-2A visa program, the one legal way to bring in temporary seasonal agricultural workers.

The White House declined to comment on the specifics of the discussion, but described the meeting as “very productive.” The U.S. Department of Agriculture did not respond to a request for comment on the April meeting.

About half of U.S. crop workers are in the country illegally and more than two-thirds are foreign born, according to the most recent figures from the U.S. Department of Labor’s National Agriculture Workers’ Survey.

During the roundtable, Luke Brubaker, a dairy farmer from Pennsylvania, described how immigration agents had recently picked up half a dozen chicken catchers working for a poultry transportation company in his county.

The employer tried to replace them with local hires, but within three hours all but one had quit, Brubaker told the gathering at the White House.

Trump said he wanted to help and asked Secretary Perdue to look into the issues and come back with recommendations, according to the accounts.

While other issues such as trade, infrastructure and technology were also discussed, participants were more positive after the meeting about the conversation on foreign labor “than about anything else we talked about,”  said Bill Northey, a farmer and Iowa’s secretary of agriculture.

RED TAPE

Tom Demaline, president of Willoway Nurseries in Ohio, said he told the president about his struggles with the H-2A guestworker program, which he has used for 18 years.

He told Trump the program works in concept, but not in practice. “I brought up the bureaucracy and red tape,” he said. “If the guys show up a week or two late, it puts crops in jeopardy. You are on pins and needles all year to make sure you get the workers and do everything right.”

While use of the program has steadily increased over the past decade, it still accounts for only about 10 percent of the estimated 1.3 million farmworkers in the country, according to government data. In 2016, the government granted 134,000 H-2A visas

Employers who import workers with H-2A visas must provide free transportation to and from the United States as well as housing and food for workers once they arrive. Wage minimums are set by the government and are often higher than farmers are used to paying.

Steve Scaroni, whose company Fresh Harvest brings in thousands of foreign H-2A workers for growers in California’s Central valley, says, however, that he could find work for even more people if he had more places to house them.

Trump recently signed another executive order titled “Buy American, Hire American,” calling for changes to a program granting temporary visas for the tech industry, but not to visas used by farmers and other seasonal businesses, including Trump’s own resorts.

FARMER CONCERNS

Trump also signed two executive orders, just days after taking office, focused on border security that called for arresting more people in the United States illegally and speeding up deportations.

Roundtable participants said that many farmers have worried about the effect of the stepped up enforcement on their workforce, but Trump told them his administration was focused on deporting criminals, not farmworkers.

“He has a much better understanding about this than some of the rhetoric we have seen,” said meeting attendee Steve Troxler, North Carolina’s agriculture commissioner and a farmer himself.

The farmers at the meeting said they stressed to the president the need for both short-term and permanent workers. They said there should be a program to help long-time farmworkers without criminal records, but who are in the country illegally, to become legal residents.

Last Tuesday, Democrats in the House and Senate said they would introduce a bill to give farmworkers who have worked illegally in the country for two consecutive years a “blue card” to protect them from deportation.

Brubaker, the Pennsylvania farmer, said he liked what he had heard about the bill and hoped it would get the president’s support to make it a bipartisan effort.

“The administration has got something started here,” he said of the meeting with farm leaders. “It’s about time something happens.”

(Reporting by Kristina Cooke in San Francisco and Mica Rosenberg in Washington; Additional reporting by Julia Love in Salinas, California; Editing by Sue Horton and Mary Milliken)

Exclusive: Vomitoxin makes nasty appearance for U.S. farm sector

FILE PHOTO -- Cobs of corn are held at a corn field in in La Paloma city, Canindeyu, about 348km (216 miles) northeast of Asuncion August 7, 2012. Corn export is second only to soybean export in Paraguay. REUTERS/Jorge Adorno/File Photo

By P.J. Huffstutter and Michael Hirtzer

CHICAGO (Reuters) – A fungus that causes “vomitoxin” has been found in some U.S. corn harvested last year, forcing poultry and pork farmers to test their grain, and giving headaches to grain growers already wrestling with massive supplies and low prices.

The plant toxin sickens livestock and can also make humans and pets fall ill.

The appearance of vomitoxin and other toxins produced by fungi is affecting ethanol markets and prompting grain processors to seek alternative sources of feed supplies.

Researchers at the U.S. Department of Agriculture first isolated the toxin in 1973 after an unusually wet winter in the Midwest. The compound was given what researchers described as the “trivial name” vomitoxin because pigs were refusing to eat the infected corn or vomiting after consuming it. The U.S. Corn Belt had earlier outbreaks of infection from the toxin in 1966 and 1928.

A vessel carrying a shipment of corn from Paraguay is due next month at a North Carolina port used by Smithfield Foods Inc [SFII.UL], the world’s largest pork producer.

The spread of vomitoxin is concentrated in Indiana, Wisconsin, Ohio, and parts of Iowa and Michigan, and its full impact is not yet known, according to state officials and data gathered by food testing firm Neogen Corp.

In Indiana, 40 of 92 counties had at least one load of corn harvested last fall that has tested positive for vomitoxin, according to the Office of Indiana State Chemist’s county survey. In 2015 and 2014, no more than four counties saw grain affected by the fungus.

And in a “considerable” share of corn crops tested in Michigan, Wisconsin and Indiana since last fall’s harvest, the vomitoxin levels have tested high enough to be considered too toxic for humans, pets, hogs, chickens and dairy cattle, according to public and private data compiled by Neogen. The company did not state what percent of each state’s corn crop was tested.

Smithfield would not confirm it had ordered the corn from Paraguay, but two independent grain trading sources said Smithfield was the likely buyer. A company source said corn Smithfield has brought in from Indiana and Ohio, to feed pigs in North Carolina, has been “horrible quality” due to the presence of mycotoxins.

TOXIN LEVELS

The U.S. Food and Drug Administration allows vomitoxin levels of up to 1 part per million (ppm) in human and pet foods and recommends levels under 5 ppm in grain for hogs, 10 ppm for chickens and dairy cattle. Beef cattle can withstand toxin levels up to 30 ppm.

Alltech Inc, a Kentucky-based feed supplement company, said 73 percent of feed samples it has tested this year have vomitoxin. The company analyzed samples sent by farmers whose animals have fallen ill.

“We know there is lots of bad corn out there, because corn byproducts keep getting worse,” said Max Hawkins, a nutritionist with Alltech.

Neogen, which sells grain testing supplies, reported a 29 percent jump in global sales for toxin tests – with strong demand for vomitoxin tests – in their fiscal third quarter, ending Feb. 28.

“We’re polling our customers and continually talking to them about the levels they’re seeing. Those levels are not going down,” said Pat Frasco, director of sales for Neogen’s milling, grain and pet food business.

The problem, stemming from heavy rain before and during the 2016 harvest, prompted farmers to store wet grain, said farmers, ethanol makers and grain inspectors.

The issue was compounded by farmers and grain elevators storing corn on the ground and other improvised spaces, sometimes covering the grain piles with plastic tarps. Grain buyers say they will have a clearer picture of the problem later this spring, as more farm-stored grain is moved to market.

Iowa State University grain quality expert Charles Hurburgh said the sheer size of the harvest in 2016 – the largest in U.S. history – complicates the job of managing toxins in grain, especially in the core Midwest.

“Mycotoxins are very hard to handle in high volume,” he said. “You can’t test every truckload, or if you do, you are only going to unload 20 trucks in a day.” By comparison, corn processors in Iowa unload 400 or more trucks a day.

BIOFUEL IMPACTS

Ethanol makers already are feeling the impact. Turning corn into ethanol creates a byproduct called distillers dried grains (DDGs), which is sold as animal feed. With fuel prices low, the DDGs can boost profitability.

But the refining process triples the concentration of mycotoxins, making the feed byproduct less attractive. DDG prices in Indiana fell to $92.50 per ton in February, the lowest since 2009, and now are selling for $97.50 per ton, according to USDA.

Many ethanol plants are testing nearly every load of corn they receive for the presence of vomitoxin, said Indiana grain inspector Doug Titus, whose company has labs at The Andersons Inc, a grain handler, and energy company Valero Energy sites.

The Andersons in a February call with analysts said vomitoxin has hurt results at three of its refineries in the eastern U.S. “That will be with us for some time,” Andersons’ chief executive Pat Bowe said.

Missouri grain farmer Doug Roth, who put grain into storage after last year’s wet harvest, has seen a few loads of corn rejected by clients who make pet food after the grain tested positive for low levels of fumonisin, a type of mycotoxin.

Roth said he paid to reroute the grain to livestock producers in Arkansas, who planned to blend it with unaffected grain in order to mitigate the effect of the toxins.

“As long as this doesn’t become a widespread problem, we’re all fine,” said Roth, who said toxins have shown up in less than 1 percent of the grain loads he has sold.

U.S. farmers with clean corn are reaping a price bump. A Cardinal Ethanol plant in Union City, Indiana, is offering grain sellers a 10-cent per bushel premium for corn with less than one-part-per-million (ppm) or less of vomitoxin in it, according to the company’s website.

(Additional reporting by Karl Plume and Julie Ingwersen in Chicago; Editing by Matthew Lewis)

Last stand: Nebraska farmers could derail Keystone XL pipeline

Art and Helen Tanderup are against the proposed Keystone XL Pipeline that would cut through the farm where they live near Neligh, Nebraska, U.S. April 12, 2017. REUTERS/Lane Hickenbottom

By Valerie Volcovici

Neligh, NEBRASKA (Reuters) – When President Donald Trump handed TransCanada Pipeline Co. a permit for its Keystone XL pipeline last month, he said the company could now build the long-delayed and divisive project “with efficiency and with speed.”

But Trump and the firm will have to get through Nebraska farmer Art Tanderup first, along with about 90 other landowners in the path of the pipeline.

They are mostly farmers and ranchers, making a last stand against the pipeline – the fate of which now rests with an obscure state regulatory board, the Nebraska Public Service Commission.

The group is fine-tuning an economic argument it hopes will resonate better in this politically conservative state than the environmental concerns that dominated the successful push to block Keystone under former President Barack Obama.

Backed by conservation groups, the Nebraska opponents plan to cast the project as a threat to prime farming and grazing lands – vital to Nebraska’s economy – and a foreign company’s attempt to seize American private property.

They contend the pipeline will provide mainly temporary jobs that will vanish once construction ends, and limited tax revenues that will decline over time.

They face a considerable challenge. Supporters of the pipeline as economic development include Republican Governor, Pete Ricketts, most of the state’s senators, its labor unions and chamber of commerce.

“It’s depressing to start again after Obama rejected the pipeline two years ago, but we need keep our coalition energized and strong,” said Tanderup, who grows rye, corn and soybeans on his 160-acre property.

Now Tanderup and others are gearing up for another round of battle – on a decidedly more local stage, but with potentially international impact on energy firms and consumers.

The latest Keystone XL showdown underscores the increasingly well-organized and diverse resistance to pipelines nationwide, which now stretches well beyond the environmental movement.

Last year, North Dakota’s Standing Rock Sioux, a Native American tribe, galvanized national opposition to the Energy Transfer Partners Dakota Access Pipeline. Another ETP pipeline in Louisiana has drawn protests from flood protection advocates and commercial fishermen.

The Keystone XL pipeline would cut through Tanderup’s family farm, near the two-story farmhouse built in the 1920s by his wife Helen’s grandfather.

The Tanderups have plastered the walls with aerial photos of three “#NoKXL” crop art installations they staged from 2014 to 2016. Faded signs around the farm still advertise the concert Willie Nelson and Neil Young played here in 2014 to raise money for the protests.

The stakes for the energy industry are high as the Keystone XL combatants focus on Nebraska, especially for Canadian producers that have struggled for decades to move more of that nation’s landlocked oil reserves to market. Keystone offers a path to get heavy crude from the Canada oil sands to refiners on the U.S. Gulf Coast equipped to handle it.

TransCanada has route approval in all of the U.S. states the line will cross except Nebraska, where the company says it has been unable to negotiate easements with landowners on about 9 percent of the 300-mile crossing.

So the dispute now falls to Nebraska’s five-member utility commission, an elected board with independent authority over TransCanada’s proposed route.

The commission has scheduled a public hearing in May, along with a week of testimony by pipeline supporters and opponents in August. Members face a deadline set by state law to take a vote by November.

“TENS OF THOUSANDS” OF JOBS

TransCanada has said on its website that the pipeline would create “tens of thousands” of jobs and tens of millions in tax dollars for the three states it would cross – Montana, South Dakota and Nebraska.

TransCanada declined to comment in response to Reuters inquiries seeking a more precise number and description of the jobs, including the proportion of them that are temporary – for construction – versus permanent.

Trump has been more specific, saying the project would create 28,000 U.S. jobs. But a 2014 State Department study predicted just 3,900 construction jobs and 35 permanent jobs.

Asked about the discrepancy, White House spokeswoman Kelly Love did not explain where Trump came up with his 28,000 figure, but pointed out that the State Department study also estimates that the pipeline would indirectly create thousands of additional jobs.

The study indicates those jobs would be temporary, including some 16,100 at firms with contracts for goods and services during construction, and another 26,000, depending on how workers from the original jobs spend their wages.

TransCanada estimates that state taxes on the pipeline and pumping stations would total $55.6 million across the three states during the first year.

The firm will pay property taxes on the pumping stations along the route, but not the land. It would pay a different – and lower – “personal property” tax on the pipeline itself, said Brian Jorde, a partner in the Omaha-based law firm Domina Law Group, which represents the opposition.

The personal property taxes, he said, would decline over a seven-year period and eventually disappear.

TRUMP: ‘I’ll CALL NEBRASKA’

The Nebraska utilities commission faces tremendous political pressure from well beyond the state it regulates.

“The commissioners know it is game time, and everybody is looking,” said Jane Kleeb, Nebraska’s Democratic party chair and head of the conservation group Bold Alliance, which is coordinating resistance from the landowners, Native American tribes and environmental groups.

The alliance plans to target the commissioners and their electoral districts with town halls, letter-writing campaigns, and billboards.

During the televised ceremony where Trump awarded the federal permit for the pipeline, he promised to weigh in on the Nebraska debate.

“Nebraska? I’ll call Nebraska,” he said after TransCanada Chief Executive Russell Girling said the company faced opposition there.

Love, the White House spokeswoman, said she did not know if Trump had called Nebraska officials.

The commission members – one Democrat and four Republicans – have ties to a wide range of conflicting interests in the debate, making it difficult to predict their decision.

According to state filings, one of the commissioners, Democrat Crystal Rhoades, is a member of the Sierra Club – an environmental group opposing the pipeline.

Another, Republican Rod Johnson, has a long history of campaign donations from oil and gas firms.

The others are Republicans with ties to the farming and ranching sectors – including one member that raises cattle in an area near where the pipeline would cross.

All five members declined requests for comment.

PREPPING THE WITNESSES

TransCanada has been trying since 2008 to build the 1,100-mile line – from Hardisty, Alberta to Steele City, Nebraska, where it would connect to a network feeding the Midwest and Gulf Coast refining regions. The firm had its federal permit application rejected in 2015 by the Obama administration.

Opponents want the pipeline, if not rejected outright, to be re-routed well away from Nebraska’s Sandhills region, named for its sandy soil, which overlies one of the largest freshwater aquifers in the United States.

The Ogallala aquifer supplies large-scale crop irrigation and cattle-watering operations.

“It all comes down to water,” said Terry Steskal, whose family farm lies in the pipeline’s path.

Steskal dug his boot into the ground on his property, kicking up sand to demonstrate his biggest concern about the pipeline. If the pipeline leaks, oil can easily seep through the region’s porous soil into the water, which lies near the surface.

TransCanada spokesman Terry Cunha said the company has a good environmental record with its existing Keystone pipeline network in Nebraska, which runs east of the proposed Keystone XL.

The company, however, has reported at least two big pipeline spills in other states since 2011, including some 400 barrels of oil spilled in South Dakota last year.

The Domina Law Group is helping the opposition by preparing the landowners, including the Tanderups and Steskals, for the August hearings, much as they would prepare witnesses for trial.

If the route is approved, Jorde said the firm plans to file legal challenges, potentially challenging TransCanada’s right to use eminent domain law to seize property.

Eminent domain allows for the government to expropriate private land in the public interest. But Jorde said he thinks TransCanada would struggle to meet that threshold in Nebraska.

“Some temporary jobs and some taxes is not enough to win the public interest argument,” he said.

(Additional reporting by Ethan Lou in Calgary; Editing by Richard Valdmanis and Brian Thevenot)

Trump vows to back U.S. dairy farmers in Canada trade spat

FILE PHOTO: An old tractor sporting a Canadian national flag is seen parked in the rural township of Oro-Medonte, Ontario July 26, 2015. REUTERS/Chris Helgren/File Photo

By Rod Nickel

(Reuters) – U.S. President Donald Trump promised on Tuesday to defend American dairy farmers who have been hurt by Canada’s protectionist trade practices, during a visit to the cheese-making state of Wisconsin.

Canada’s dairy sector is protected by high tariffs on imported products and controls on domestic production as a means of supporting prices that farmers receive. It is frequently criticized by other dairy-producing countries.

“We’re also going to stand up for our dairy farmers,” Trump said in Kenosha, Wisconsin. “Because in Canada some very unfair things have happened to our dairy farmers and others.”

Trump did not detail his concerns, but promised his administration would call the government of Prime Minister Justin Trudeau and demand an explanation.

“It’s another typical one-sided deal against the United States and it’s not going to be happening for long,” Trump said.

Trump also reiterated his threat to eliminate the North American Free Trade Agreement (NAFTA) with Canada and Mexico if it cannot be changed.

U.S. dairy industry groups want Trump to urge Trudeau to halt a pricing policy that has disrupted some U.S. dairy exports and prioritize dairy market access in NAFTA renegotiation talks.

“A WTO complaint would be a last resort because it would take five or six years to come to any resolution,” said Jaime Castaneda, senior vice president for the U.S. Dairy Export Council.

Canada’s dairy farmers agreed last year to sell milk ingredients used for cheese-making to Canadian processors, which include Saputo Inc and Parmalat Canada Inc [PLTPRC.UL] at prices competitive with international rates. The pricing agreement was a response to growing U.S. exports of milk proteins that were not subject to Canada’s high tariffs.

Canada’s envoy to Washington on Tuesday sent a letter to the governors of New York and Wisconsin – both major dairy states – saying U.S. producers’ problems stemmed from overproduction rather than Canadian policy.

In the letter, released by Ottawa, ambassador David MacNaughton said Canada’s dairy industry was less protectionist than its U.S. counterpart.

Industry groups in New Zealand, Australia, the European Union, Mexico and the United States complained the new prices for Canadian milk ingredients under-cut exports to Canada.

“President Trump’s reaction is not surprising. He is defending his domestic dairy industry,” said Jacques Lefebvre, CEO of Dairy Processors Association of Canada. “Further communications with the Canadian government will broaden his perspective.”

The Dairy Farmers of Canada said it was confident Ottawa would “continue to protect and defend” the dairy industry.

(Reporting by Rod Nickel in Winnipeg, Manitoba; additional reporting by Steve Holland in Kenosha, Wisconsin, Karl Plume in Chicago,; Ayesha Rascoe in Washington; and David Ljunggren in Ottawa; Editing by Lisa Shumaker)

Italian farmers bring sheep to Rome to protest quake response

A sheep is seen in front of the Montecitorio Palace during a protest held by farmers from the earthquake zones of Amatrice, in Rome, Italy March 7, 2017. REUTERS/Max Rossi

ROME (Reuters) – Italian farmers from regions ravaged by earthquakes brought sheep to central Rome on Tuesday to protest what they say are serious delays in reconstruction efforts.

More than 10,000 farm animals have been killed or injured by quake damage and subsequent freezing weather, farmers’ association Coldiretti said.

Outside parliament, a makeshift paddock housed three sheep rescued from areas struck by tremors while farmers waved flags and banners reading “Bureaucracy is more deadly than earthquakes”.

Thousands of farming businesses are housed in the central regions of Lazio, Marche, Abruzzo and Umbria where tremors have rumbled since August.

Prime Minister Paolo Gentiloni has approved a draft law to help people affected by the quakes, including 35 million euros ($37 million) to compensate farmers for lost income.

The law also aims to make it easier for regional governments to buy temporary stalls. Farmers say about 85 percent of their livestock need shelter.

“Breeders still don’t know where to put their surviving cows, pigs and sheep, which are either stuck out in the cold, at risk of death and disease, or in derelict buildings,” the farm association said.

Stress caused by cold and fear has reduced milk production in the region by 30 percent. Local crops like lentils are also at risk as seeds cannot be sown on fractured land, it added.

The agriculture ministry said the process of releasing emergency funds to farmers was under way.

($1 = 0.9458 euros)

(Reporting by Isla Binnie; Editing by Julia Glover)

After Islamic State defeat, broken Iraq farmers weigh heavy losses

Workers repair a house after it was damaged during clashes in the town of Basheeqa, Iraq, February 8, 2017.

By Michael Georgy and Maha El Dahan

QARAQOSH, Iraq/ABU DHABI (Reuters) – Sami Yuhanna was making a decent living as a wheat farmer until a jihadist put a gun to his head and declared his land in Iraq’s Nineveh province the property of Islamic State.

An army offensive has cleared the militants from the eastern half of the provincial capital, Mosul, and nearby towns and villages like Qaraqosh, home to Yuhanna’s fields.

But the terror and mismanagement that characterized their two-year rule after seizing Iraq’s agriculture heartland has devastated farmers and exacerbated the country’s food security problem.

Yuhanna, who used to sell about 100 tonnes of wheat per year, now lives in a small trailer and drives a taxi in the Kurdish capital of Erbil to barely survive. He is still haunted by the day armed militants arrived.

“They just took over everything I owned,” he said.

Farmers fear the agriculture sector could take years to recover, with tractors missing, unexploded mines in the fields and farm compounds damaged by airstrikes on the militants, who sold commodities like wheat to finance their operations.

Nineveh was Iraq’s most productive farming region before the arrival of Islamic State, producing around 1.5 million tonnes of wheat a year, or about 21 percent of Iraq’s total wheat output, and 32 percent of barley.

An estimated 70 percent of farmers fled when Islamic State took over, and those who stayed — either to join the movement or out of fear — faced heavy taxation.

As a Christian, Yuhanna was particularly vulnerable to the Sunni extremists, who tried to build a self-sustaining caliphate and killed anyone opposed to their radical ideas.

“The people that turned on me we were all from this area. I knew every one of them. They joined Daesh,” said Yuhanna, using an acronym for the group.

Reuters was not able to obtain official figures for agricultural output during Islamic State rule because the government had no access to areas under jihadist control.

Haider al-Abbadi, head of the General Union of Farmers Cooperatives, told Reuters in a telephone interview that he estimated output fell to around 300,000 tonnes, based on accounts of how much of the grain farmers had sold.

“Islamic State used to surround farmers in general and prevent them from going out into the fields and farming their land because they were scared they would escape or that they would go and join the government forces,” Abbadi said.

“This season it will be difficult to see an improvement. The only hope is that the farmers might be able to market their produce to the government again. I don’t expect the wheat crop to be more than 500,000 tonnes this season.”

Fadel El Zubi, Iraq Representative for the U.N. Food and Agriculture Organization (FAO), agreed the outlook is dire.

“It is extremely important to support farmers as their situation in newly retaken areas is characterized by extreme difficulties that is disabling them to start planting for this season 2016-2017,” Zubi said in written answers to Reuters.

“Seeds, fertilizers, fuel, electricity, sustainable agricultural equipment, as well as irrigation channels and wells and other essential supplies, are not available to enable farmers to restore their usual farming.”

The militants seized 1.1 million tonnes of wheat that was in government silos, according to Zubi. In addition, about 40 percent of agricultural machinery was sold as parts or smuggled into neighboring countries to raise money for militant activities, Abbadi said.

FOOD SECURITY

Ensuring food security has consistently been one of the central government’s biggest — and most pressing — challenges.

Even late dictator Saddam Hussein was cautious when it came to food. A rationing program for flour, cooking oil, rice, sugar and baby milk formula, the Public Distribution System (PDS), was created in 1991 to combat UN-imposed economic sanctions.

Impoverished Iraqis continue to depend on the system, which has become corrupt and wasteful over the years as well as severely curtailed in conflict zones.

The FAO estimates there are around 2.4 million people in Iraq who do not have access to nutritious food that meets their dietary needs.

Islamic State set itself apart from militant groups like Al Qaeda by holding territory and attempting to create an administration that could deliver basic services in order to win public support. But the group failed in areas such as farming.

For one thing, the militants did not match government prices, farmers said. While the state used to pay double the market price for commodities such as wheat, for example, Islamic State paid below the global average.

“They were paying farmers around $200 a ton while the government used to pay up to $600 a ton,” Zubi said.

Ghanem Hussein used to work 100 donhums (250,000 square meters) of wheat and barley crops below mountain ranges. When the jihadists showed up, his planting shrunk to 10 donhums because he didn’t fully cooperate with them.

“They did not buy anything from us. I just grew enough to feed my animals. Total destruction,” said Hussein, throwing seeds by hand on a small plot of land around his house in the village of Omar Khabshi.

He now fears for the safety of his children because dogs that ate corpses left on roadsides by fighting are biting people in his village.

NO HOPE

Islamic State’s failure to meet the basic needs of Iraqis would likely undermine any bid to make a comeback in the country as it tries to recover from losses in Syria and Libya, farmers said.

But the government is not offering much hope either, they said, with most of its resources directed at driving the militants out of Mosul.

Farmer Abdel Hakim Ali, 45, used to sell 50-100 tonnes of wheat and barley annually to state-run silos before Islamic State arrived. He and other farmers have contacted the government to see if the old arrangements could be revived.

Parts of a bulldozer are seen at a farm in the town of Basheeqa, Iraq,

Parts of a bulldozer are seen at a farm in the town of Basheeqa, Iraq, February 8, 2017. REUTERS/Ahmed Saad

“They said to wait because the budget is weak,” said Ali. “The state is failing. This is our government. They said wait for God’s mercy.”

This is a familiar story to farmers. When Islamic State took over Mosul in June 2014, farmers in the region had still not received government payments for the wheat they had sold that year.

Kadhum al-Bahadli, the government’s advisor on agricultural affairs, said efforts were underway to pay and compensate farmers and offer loans for seeds despite low oil prices and deteriorating state finances.

“The government has already put plans to compensate Mosul farmers for the wheat delivered to silos before the occupation of Daesh. They should be patient as the process is complicated and needs more time.”

Aref Hassan, head of a farmers association in Basheeqa with 1,100 members, showed Reuters photographs of a town once surrounded by green fields that was reduced to rubble in the effort to dislodge jihadists.

Only a few families have returned.

Hassan walked through an olive grove, despairing at the sight of one tree after another burned by militants in an apparent bid to create smoke to evade airstrikes.

Reviving the grove could take a decade, he said. For now, there are more pressing concerns.

“There are still mines and improvised explosive devices on a lot of land so farmers can’t work,” he said.

“We hope that international organizations and demining organizations will clean up the farming areas. The farmer cannot go back to his land until these farms are cleared.”

(Additional reporting by Ahmed Rasheed in Baghdad; Editing by Sonya Hepinstall)

Yemeni farmers urgently need support to help ease hunger crisis: U.N

a Yemeni woman holds her malnourished son

By Alex Whiting

ROME (Thomson Reuters Foundation) – In the midst of one of the world’s worst hunger crises, Yemen’s farmers urgently need support so they can grow more food and provide young people with jobs, the U.N. Food and Agriculture Organization (FAO) said.

Nearly two years of war between a Saudi-led Arab coalition and the Iran-allied Houthi movement has left more than half of Yemen’s 28 million people facing hunger, its economy in ruins and food supplies disrupted.

Nearly half of Yemen’s 22 governorates are officially rated as being in an emergency food situation, which is four on a five-point scale, where five is famine, the United Nations said last month.

“People’s access to food is rapidly worsening and urgent action is needed,” said Salah Hajj Hassan, FAO representative in Yemen.

About two-thirds of the population depends on agriculture for their survival, and it is one of the only sectors of the economy still functioning after years of war, according to FAO.

But farming has been devastated by the conflict, and rural communities need help to restore crops and livestock, the U.N. agency said.

This is especially true for those living in remote or conflict-hit areas which are frequently cut off from food aid, FAO said.

Pressure on rural communities has increased as people fled fighting in the cities to stay with friends or relatives in the countryside, Hajj Hassan said.

Supporting farmers will not only ease hunger levels, it may also help prevent the conflict from worsening.

“From a security point of view, if we don’t give those people the chance to work, what alternatives will young people have?” Hajj Hassan told the Thomson Reuters Foundation by phone.

Yemen’s early warning system also needs to be bolstered so that authorities and aid agencies can monitor changes in hunger levels, and get early information about drought, locust infestations, cyclones and floods – which are frequent visitors to the impoverished country.

“It is absolutely critical for the authorities and the people themselves to … be able to monitor these shocks so … they can take early action to prevent it from turning into a big disaster,” Dominique Burgeon, director of FAO’s emergency and rehabilitation division, said earlier this month.

“In terms of numbers, Yemen is the worst humanitarian crisis in the world,” he said.

The European Union has given 12 million euros to help 150,000 farmers, and to collect more data on people’s access to food, FAO said this week.

(Reporting by Alex Whiting @Alexwhi, Editing by Ros Russell.; Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, climate change, resilience, women’s rights, trafficking and property rights. Visit http://news.trust.org/food)

U.S. farmers race to ready for Hurricane Matthew’s blast

Cars are seen along Deerfield beach near Coral Springs while Hurricane Matthew approaches in Florida,

By Chris Prentice

NEW YORK (Reuters) – Hurricane Matthew, the fiercest Caribbean storm in nearly a decade, roiled commodities markets and forced companies from cane refiners to orange juice makers to shutter as it whipped its way toward the southeastern United States on Thursday.

Southeastern companies were closing down operations ahead of a storm that could threaten some two million tonnes of sugar and trees representing over 90 million boxes of citrus fruits in Florida. About half a million acres of cotton were at risk from torrential rain in North and South Carolina, where farmers have already been struggling during a rainy harvest.

Officials issued a state of emergency for parts of Florida, Georgia and the Carolinas for the Category 4 hurricane that by Thursday afternoon had already taken the lives of 140 people, mostly in Haiti. Port operations along the coast were slowing or shut.

For commodities markets including U.S. sugar, orange juice and cotton, the storm prompted a volatile week of trade. Though forecasters like senior meteorologist Drew Lerner of World Weather Inc said damage to Florida’s sugar and citrus crops would likely be limited, producers were readying for the worst.

The storm has forced a shutdown of sugar operations just days into the harvest, said Ryan Weston, executive vice president of the Sugar Cane League, which represents growers in Florida, Texas and Hawaii.

“Depending on the intensity and path of the winds, hurricanes will knock the cane down to the ground, slowing harvest way down. It hurts this harvest and the next,” Weston said.

The storm was expected to hit Florida or brush along the state’s east coast through Friday night, then work its way up the Atlantic coast.

As of 5 p.m. (2100 GMT) Thursday, Matthew contained sustained winds of 140 mph and gusts up to 165 mph, according to the U.S. National Hurricane Center. It was about 100 miles east-southeast of West Palm Beach, Florida, and was moving to the north-northwest at 14 mph.

Florida’s east coast, predominantly grapefruit country, was expected to bear the brunt of the storm. There, trees have already been weakened from disease, said Lerner.

“Our growers are already facing challenges,” said Nikki Hayde, senior marketing manager for Florida’s Natural Growers, a cooperative of about 1,000 citrus farmers throughout the state.

“We are trying to get out orders that were scheduled for Thursday and Friday on the road as quickly as possible,” she said.

‘HARVESTING AS FAST AS WE CAN’

The U.S. livestock industry was also closely tracking the storm’s path, likely to brush the hog-rich Carolinas.

Smithfield Foods, a subsidiary of WH Group Ltd and the world’s largest hog producer and pork processor, moved to protect people, animals and buildings from the impending storm, said company spokeswoman Keira Lombardo in an e-mail.

Crews at the port of Wilmington, North Carolina, prepared for Matthew’s winds by lowering container stacks and tying down equipment.

In North and South Carolina’s cotton-growing regions, farmers raced to bring in fiber from fields where rains have delayed harvesting and the plants were at one of their most vulnerable stages, most susceptible to the 2 to 15 inches of rain expected.

“It’s tricky,” said Michael Quinn, president and chief executive of Carolinas Cotton Growers Cooperative Inc. “The growers are harvesting as fast as they can.”

“We are closely monitoring conditions ahead of the storm and working proactively with farmers to help them prepare for a significant rainfall event. Governor McCrory has declared a state of emergency for all 100 counties in North Carolina as we brace for as much as 10 to 12 inches of rain in our coastal areas,” said North Carolina Department of Environmental Quality spokeswoman Stephanie Hawco.

(Corrects quote in last paragraph to say “for all 100 counties in North Carolina,” not “for all 100 counties in central and eastern North Carolina”.)

(Reporting by Chris Prentice in New York and Theopolis Waters and Karl Plume in Chicago; Editing by James Dalgleish)