Weekly livestock news for January 20: trade, ag equipment sales, chronic wasting disease

China’s ‘market condition’ caveat on U.S. ag purchases adds to trade deal doubts

China’s pledge to buy U.S. farm goods based on “market conditions” during the January 15 trade deal signing added to doubts among farmers and commodity traders over lingering tariffs on U.S. exports, Reuters reports. President Donald Trump’s insistence on a big commitment to buy farm products was a major sticking point in talks leading up to the signing, since China wanted the freedom to buy based on demand, people briefed on the negotiations said. But Chinese Vice Premier Liu He’s statement that Chinese firms will buy American products “based on market conditions” sent future prices of U.S. soybeans, the top U.S. farm product shipped to China by value before the trade war, as much as 1% lower. “’When the market dictates’ means they may not come back for 36 months,” said Terry Reilly, senior commodities analyst with Futures International. “Who knows? It means when they need it and the price is right.” According to Joe Vaclavik, president of Standard Grain, a brokerage, “I don’t know if the soybean market was ever convinced that we were going to see record purchases of soybeans.”

U.K. plans to refuse U.S. chicken in new trade deal

A U.S.-U.K. trade dispute over poultry could be in store after a U.K. government official reiterated England won’t allow imports of chlorinated chicken and hormone-treated beef. As Britain prepares to leave the European Union, the country is in a crunch to negotiate new trade deals with partners, including the United States, Bloomberg reports. “We will defend our national interests and our values, including our high standards of animal welfare,” said U.K. Environment Secretary Theresa Villiers. Villiers noted that both the treated chicken and beef are banned under European Union law; she said the United Kingdom will maintain that regulation after it leaves the bloc. The United States has argued for years that the EU ban on chlorinated chicken is a non-tariff barrier to trade because it’s not based on scientific evidence that the treatments are harmful to humans. The union’s ban resulted in a significant drop in U.S. poultry imports—from $52 million in 1997 to $13.5 million in 2018.

Checkoff reform bill introduced in House

A new bill introduced in the U.S. House seeks to “add accountability and transparency” to U.S. Department of Agriculture checkoff programs, according to the bill’s sponsor, Representative Dina Titus of Nevada. The bill, known as the Opportunities for Fairness in Farming Act, would prevent USDA checkoff programs from paying organizations that lobby on agricultural issues. It would prohibit anticompetitive behavior, ban activity involving a conflict of interest and require audits every five years to ensure compliance. It would also stop federally mandated funds from being used for anticompetitive programs or from being spent to disparage another commodity in the marketplace, Feedstuffs reports. Checkoff programs have been important for agricultural advertising; famous campaigns, like “Beef. It’s What’s for Dinner,” have been funded by farmers’ checkoff tax payments. “The USDA’s checkoff programs have operated without sufficient oversight for far too long, and this legislation will bring much-needed accountability and transparency,” Titus said.

Tyson to build $37M turkey feed mill in Iowa

Tyson Foods is planning to build a new feed mill in Storm Lake, Iowa, to replace an older mill there, Feed Strategy reports. The project is a $37 million investment and will create 15 new jobs in the area, according to Tyson spokesperson Derek Burleson. The company operates a turkey processing plant and a pork processing plant in Storm Lake, but Burleson said the new mill will serve farmers who raise turkeys in the area. The existing mill supporting the turkey plant will be torn down, as per an agreement between Tyson and the city. Storm Lake City Manager Keri Navratil said the new mill will be built on a different parcel of land than the existing mill. Tyson officials hope to have the new feed mill project completed by the end of 2021, Burleson said.

Ag equipment dealers expect flat financial results in the coming year

Agricultural equipment dealers and manufacturers expect primarily flat financial results in the coming year, even while factors like weather and trade pressure weigh on the ag economy, new data shows. According to results from a recent survey conducted by the Association of Equipment Manufacturers and the Equipment Dealers Association, manufacturers and dealers want to reduce costs to adjust to conditions. More than 75% of dealers said they’re reducing volumes, while 45% said they’re reducing or canceling capital investments. Almost 80% of manufacturers said they’re reducing hiring, 55% are reducing capital investments in expansion, and just under 50% are reducing capital investments in equipment, Feedstuffs reports.

2019 losses from 3 major river flooding events total $20B: NOAA

Last year was one of the wettest and costliest years on record in the United States, with weather events leading to losses of $45 billion, according to the National Oceanic and Atmospheric Administration. Losses from the 2019 Arkansas, Missouri and Mississippi River floods alone were $20 billion, NOAA said. Last year was also the second wettest year on record, less than an inch below 1973’s record high, Ag Professional reports.

Researchers hope turkey microbiome can help reduce antibiotic use

Scientists at the University of Minnesota are examining the turkey gut microbiome with hopes of developing a probiotic that farmers can use to keep their flocks healthy without using antibiotics. Wild turkeys form their gut microbiome—the collection of microorganisms in the gastrointestinal tract—when they pick up bacteria from egg shells as they hatch. But in commercial settings, this initial exposure is often lost when eggs are disinfected to be kept clean, WattAgNet reports. The research team studied the microbiomes of more than 10,000 healthy turkeys, identifying a list of bacteria strongly associated with high-performing turkeys. Now, they want to develop a customized probiotic that farmers can give to young turkeys in their water or even before they’ve hatched, serving as an alternative to antibiotics.

Up to 40 Mississippi deer tested had deadly brain disease

Chronic wasting disease, a deadly brain condition similar to mad cow disease in cattle, has been found or is suspected in 40 Mississippi deer. The state is asking hunters to continue providing samples through the deer season, the Associated Press reports. Nearly all the infected or suspected deer were in north Mississippi, including 25 killed or found in Benton County and 10 in nearby Marshall County, the Mississippi Department of Wildlife, Fisheries and Parks said in a news release. Both counties border southwest Tennessee, where the disease has also been found. The cases in the two states are likely tied, said Russ Walsh, wildlife chief of staff at the wildlife department. The department has collected nearly 4,700 heads from hunters, road-killed deer and whitetails reported as diseased. Several hundred of those are still awaiting lab tests, Walsh said. Researchers recently found that chronic wasting disease could be transmitted sexually.