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On Tuesday, McDonald's made the announcement it would reduce greenhouse gas emissions by 36 percent, or 150 million metric tons by 2030. While restaurants will become more efficient with lighting, energy equipment, and restaurant cycling, agricultural practices, such as beef production, will be impacted as well. "We need to recognize that McDonald's is a beef company first and foremost, and their efforts to improve beef sustainability is driven by their customers," said Greg Henderson, editorial director of Drovers to AgDay host Clinton Griffiths. Some of these practices have been implemented as part of a pilot program in Canada. According to Henderson, Canadian beef producers were favorable to the project. Cargill is also working on its own pilot program to pay producers $10 per head for every animal that is verified sustainable. "From a Canadian standpoint, efforts have been well-received and it's a small part of what McDonald's is doing at the moment, but it's a program that will obviously come to the U.S. in the next year or two," he said.

In recent weeks, President Donald Trump proposed the idea of imposing a 25% tariff on steel and a 10% tariff on aluminum imports, citing an authority granted to the president in the interest of national security. Entering into this kind of trade war could have a significant impact on farmers, analysts warn. At press time, Trump’s announcement did not have the support of his entire cabinet and was raising eyebrows around the world. “There’s a real possibility the tariffs could invite retaliation against agriculture in the U.S.,” said Jeff Harrison of Combest, Sell & Associates on the March 2 segment of “AgriTalk.” “The consequences are altogether too real.” Canada and Mexico will be the most impacted by the tariffs, said Shawn Haney of RealAgriculture.com, a Canadian agriculture news outlet. “Will there be exemptions? From what I’ve read, the president has been very firm on no exemptions,” he said. If the president were to impose these tariffs, it would be using an authority granted because of national security threats. Countries such as Canada are taking offense to that. “It is entirely inappropriate to view any trade with Canada as a national security threat to the U.S.,” said Chrystia Freeland, Canada’s Minister of Foreign Affairs. “Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers.” According to Edge, a dairy cooperative in Wisconsin, a trade war with major trading partners would not be good for the U.S. and would likely impact sales for dairy farmers. “That would be a tragic loss at the worst possible time as farmers struggle to make ends meet,” Edge leaders said in a statement. This wouldn’t be the first time Trump has imposed tariffs, Harrison pointed out. Earlier this year, he placed tariffs on washing machines and solar panels. “China retaliated to U.S. sorghum,” Harrison said. “Farmers are really pinched right now and they can’t afford to stub their toe. We can’t afford to lose market share in the world and keep our farmers afloat.” The irony, Haney noted, is this protectionist action from Trump is what he has been accusing Canada of doing for dairy in the North American Free Trade Agreement negotiations.

The value of the 2017 Idaho potato crop hit a record $1.2 billion, according to the U.S. Department of Agriculture, a sharp increase of 22.7% from the previous year's crop. Harvested acreage in the state was down 5% and yields were down 1.2%, according to the USDA. The Idaho Potato Commission said half those potatoes- whether fresh, frozen or dehydrated - end up on restaurant menus and at other foodservice operations. That accounts for 13 billion pounds, according to a news release from the Idaho Potato Commission. "Consumers are demanding a broader variety of creative and ethnic foods that would often be too challenging, costly and time consuming to prepare at home," Don Odiorne, the commission's vice president of foodservice/website, said in the release." A variety of Idaho potatoes products and recipe options help operators meet that demand."

Tyson Foods confirmed that plant operations at their Longsport, Ind., facility were resumed Wednesday after a shutdown on Monday and Tuesday. In an email with Tyson, communications manager Caroline Ahn, said the plant temporarily halted operations "due to a production issue. The issue has been resolved and the plant is back in operation today." Local sources said employees on the harvesting side of the facility were sent home Monday afternoon, while the "cold side" continued production. Tyson Fresh Meats employs more than 2,000 people at its Logansport facilities. The National Pork Board estimates the plant's daily slaughter capacity is 15,400 as of fall 2017.

On Tuesday, the House of Representatives passed the tax reform bill. Early Wednesday morning, the Senate also passed the bill. The House will have to vote on the bill again on Wednesday because of the Byrd Rule which limits the kind of provisions that can be included in a bill via reconciliation. Long story short, it's widely expected Congress will pass tax reform, and President Trump promised to sign the bill in time for Christmas. What does all of that mean to you? Here's a quick list of things Paul Neiffer, the Farm CPA says you should know about tax reform: The corporate tax rate of 21% down from 35% but most farmers only pay 15% so this is a 40% increase You can fully deduct all farm assets purchased between September 28, 2017 and December 31, 2022 Section 179 is set at $1 million Reduction in overall tax rates by 5-10% Almost an automatic 20% deduction for net farm income. (Perhaps including self-rental, we are not sure on this yet.) Doubling of lifetime estate tax exemption to $11.2 million (2018) Almost all farmers should be able to deduct all interest expense Net Operating Losses can only be carried back 2 years and can only offset 80% of income going forward. Meals are only 50% deductible for farmers who provide meals to employees on-site No more Domestic Production Activities Deduction (DPAD) deduction, but 20% deduction is twice as much anyway Section 1031 exchanges applicable to real-estate only, but 100% bonus wipes out gain anyway (other than state issues) As you can see there are likely some wins and losses for your tax bill. We recommend visiting with your accountant to determine how these changes will specifically impact your business.

Reducing nitrates in water is obviously beneficial to the public as well as agriculture, but usually those benefits aren't quantified. A study conducted by the Center for Agricultural and Rural Development at Iowa State University explores the potential economic benefits to drinking water, recreation and health through meeting the targets of Iowa's statewide strategy for reducing nutrients. The study highlights that reducing nitrates and improving water quality in rivers and lakes would increase recreation benefits, and may reduce adverse health outcomes for people exposed to high nitrates in drinking water. The study was led by Chuan Tang, a postdoctoral researcher, and Gabriel Lade, assistant professor of economics, along with: David Keiser, assistant professor of economics; Catherine Kling, director of the Center for Agricultural and Rural Development and a Charles F. Curtiss Distinguished Professor of Agriculture and Life Sciences in the Department of Economics; Yongjie Ji, an assistant scientist; and Yau-Huo Shr, a postdoctoral researcher. In 2012, the Iowa Department of Agriculture and Land Stewardship, the Iowa Department of Natural Resources, and Iowa State University College of Agriculture and Life Sciences developed the Iowa Nutrient Reduction Strategy. As part of a broader strategy among the 12 states that border the Mississippi River, the Iowa strategy lays out a science-based framework for reducing nutrient delivery to waterways in Iowa, and ultimately, the Gulf of Mexico. The strategy's overall goal is to reduce the amount of total nitrogen and phosphorous leaving the state by 45 percent. According to the Iowa State researchers, meeting the Nutrient Reduction Strategies targets will lead to substantial benefits to Iowans. Approximately 90 percent of Iowans rely on public water supplies for drinking water, while the remaining 10 percent rely on private wells. To assess the effectiveness of drinking water nitrate removal and its associated costs, the researchers compiled data from the Iowa groundwater quality monitoring program, the Statewide Rural Well Water Survey, the Environmental Protection Agency and other sources. They also interviewed several public water supply system operators. The researchers found that, since 2007, more than 90 percent of public water supplies were in compliance with all health-based drinking water standards. However, many utilities dedicate substantial financial resources to removing nitrates. The study found that 49 public water suppliers serving more than 10 percent of Iowa's population treat water for nitrates either by blending waters or using nitrate removal equipment. Also, Iowa's public water supply systems had invested at least $1.8 million in nitrate treatment equipment since 2000. "Nitrate removal equipment can be cost prohibitive to some small communities, leaving them with few options to meet federal safe drinking water standards," said Lade. "When we looked at data on private wells, which are not regulated by the EPA as public supplies are, evidence shows that as few as 7 percent and as many as 25 percent may contain unhealthy nitrate levels." The researchers also studied benefits to recreation in Iowa. They estimated that improving the quality of Iowa's lakes by meeting the targets would increase recreational benefits to all Iowans by approximately $30 million per year. "We also noted that harmful algal blooms linked to excess nutrients have become more of a problem in recent years, which further diminishes recreation values and potentially threatens the health of recreation lovers," said Lade. The study compiled much of the available evidence to date on health impacts of nitrates in drinking water. Public health scientists have long documented the health risks to infants drinking water with high nitrates. Other studies suggest that long-term exposure to nitrates in drinking water, even at low levels, may be associated with chronic health effects. "More research is needed to further study nitrate exposure and health outcomes, and especially in understanding the complex interactions between nitrates and other potential contaminants on human health,"said Lade. "But to the extent nitrates in drinking water have adverse health impacts, we believe there are significant benefits in meeting the Nutrient Reduction Strategy targets in likely reducing Iowans' exposure and reducing healthcare expenditures." The study was funded by the Walton Family Foundation, the Iowa Environmental Council and the U.S. Department of Agriculture's National Institute for Food and Agriculture.

The National Cotton Council (NCC) found growers intend to plant 13.1 million acres to cotton in 2018-up 3.7% over 2017, according to a recent planting intentions survey. Upland cotton will likely see the bigger jump by 3.8% over last season to 12.8 million acres. Extra-long staple will grow, too, up to 254,000 acres for a 1% increase. While this could mean a larger cotton crop, there is still a long season with weather and other obstacles ahead. "Planted acreage is just one of the factors that will determine supplies of cotton and cottonseed," says Jody Campiche, NCC vice president. Assuming abandonment at 15% for the U.S. the Cotton Belt harvest area will total 11.1 million acre, she adds. If her estimates are correct, cotton could produce 19.4 million bales, 18.7 million upland and 744,000 extra-long staple bales. These estimates are based on an average yield at 842 pounds per acre and Campiche's estimated harvested acres. Each state and region response varied with planting intentions: Southeast- 2.3% increase in upland cotton to 2.6 million acres Alabama- 0.8% more cotton by taking acres out of wheat, soybeans and "other crops" Florida- greater cotton acres and fewer soybeans and "other crops" Georgia- 0.6% increase in cotton acres and less corn and "other crops" (peanuts likely) North Carolina- 8.2% increase in cotton with fewer soybeans South Carolina- 3.4% more cotton with less corn Virginia- expect 3.1% greater cotton acres by taking from wheat and "other crops" Mid-South-0.1% decrease to 1.9 million acres Mississippi- 5.5% less cotton in 2018 Tennessee- 1.5% increase in cotton acres by stealing from corn and wheat Missouri- increasing cotton acres by 3.8% with less corn and soybeans Louisiana- planting 2.6% less cotton Southwest-5.7% increase to 8 million acres Kansas- 55.3% more cotton, coming out of corn and soybeans Oklahoma- 21% increase in cotton with decreased wheat acres Texas- 3.7% more cotton and less corn and "other crops" Far West-6.8% decrease to 293,000 upland cotton acres

Crop prices may be showing some recent signs of life, but that' s of little comfort for American farmers who are forecast to see their incomes fall to a 12-year low. Farmer profits will drop 6.7 percent this year to $59.5 billion, the U.S. Department of Agriculture said Wednesday in its first forecast for 2018. That’s the lowest since 2006 and would be down 52 percent from a record $123.8 billion in 2013. "This may now be what we consider a normal time," said Carl Zulauf, an agricultural economist who retired from Ohio State University after a long professorship. "The period from about 2007 to 2013, that was the exceptional period. Farmers have had to confront the adjustment." An overhang of crop supplies has sparked a prolonged struggle in the farm economy. The decline in producer profits has crimped spending, hindering sales for companies like Deere & Co. to Monsanto Co. The downturn also helped spark a recent string of agricultural mega-mergers that have the potential to reshape the industry. Revenue Drop The USDA predicts 2018 crop revenues will drop 0.8 percent to $188.2 billion, while that from animals and related products decline 0.3 percent to $174.9 billion. Costs, meanwhile, are expected to climb 1 percent to $359.2 billion. Years of sluggish profits have forced more farmers to take out loans to keep afloat. Farmers boosted borrowing 51 percent in the fourth quarter from a year earlier to buy inputs and pay bills, according to the Kansas City Federal Reserve. That was the most in two years and signals that rising interest rates may curb producer liquidity in 2018. Farm borrowing costs rose to a 27-year high of 4.5 percent on average last quarter, up from 3.7 percent a year earlier, further stretching repayment capacity. Most farmers and lenders refrained from over-leveraging to expand operations from 2011 to 2013, when incomes and crop prices were about twice as high as they are today, according to Tim Koch, the chief credit officer at Omaha, Nebraska-based Farm Credit Services of America, which lent $28 billion last year in Iowa, Nebraska, Kansas, South Dakota and Wyoming. This restraint has allowed growers to tap equity to offset reduced profits and is one reason delinquency rates and non-performing loans remain relatively low compared with 30 years ago, during the last big income slump. "A low debt-to-asset ratio compared to the 1980s means producers have time to work through the process of lower costs to match current low commodity prices," Koch said. " We don' t have a debt issue, we have a cash flow issue that farmers can still work through." The majority of farmers are still in a " strong financial position," and that should continue in 2018 with stable commodity prices, Koch said. They are working on reducing costs to remain competitive on the global export market, he said.

Following the lead of the U.S. Department of Agriculture, Canadian federal agencies have approved the marketing of the non-browning Arctic Fuji. The Canadian Food Inspection Agency and Health Canada ruled the genetically engineered variety grown and marketed by Summerland, British Columbia-based Okanagan Specialty Fruit Inc. do not "pose a greater risk to human health than apples currently available" in Canada. Health Canada reported the Arctic Fuji does not affect allergies, and has the same nutritional values as other apples, according to a news release from Okanagan Specialty Fruit. "There has been very strong interest from retailers as we launched our first product -fresh, preservative-free Arctic Golden slices- and we look forward to introducing additional Arctic non-browning varieties into Canada and U.S. markets soon," Neal Carter, president of Okanagan, said in the release. The company shipped the golden delicious slices to about 400 retail locations in the Midwest last fall; the chains carrying the product have not been identified. The USDA approved the sale of Arctic Fujis in September 2016. The company also grows a non-browning granny smith variety.

The Senate voted to reopen the government on Monday, the third day of the shutdown. Under the bill, the government will be open until February 8. "McConnell and I have come to an arrangement," Sen. Chuck Shumer says. That "agreement" was a commitment from GOP leaders to immediately consider immigration legislation on the floor if no immigration agreement is reached by February 8, according to ProFarmer's Washington policy analyst, Jim Wiesemeyer. "Senate Majority Leader Mitch McConnell (R-Ky.) promised to take up an immigration bill that would protect an estimated 800,000 Dreamers from deportation, under an open amendment process, if Democrats would agree to end the government shutdown,” he says. The House also has to vote to end the shutdown, but it is widely expected they will by the end of the day. The Dow hit an all-time high on news the Senate reached a deal to reopen the government.