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New NAFTA could affect USDA aid payments

New NAFTA could affect USDA aid payments

The USDA authorized up to US$12 billion to help offset tariff implications

By Diego Flammini
Staff Writer
Farms.com

A new trilateral trade deal could mean U.S. farmers receive less financial aid from the USDA than originally thought.

The federal department of ag authorized up to US$12 billion in funding to help American farmers offset the economic effects of trade tariffs on U.S. agriculture.

The federal government distributed about US$25.8 million to American producers as of Sept. 21, the Washington Post reported. But future payments may be changed due to the new NAFTA agreement, known as the U.S.-Mexico-Canada Agreement (USMCA).

“If the tariffs do come off and tariff impact lessens, it will have some impact over the mitigation efforts because mitigation efforts were based on the fact that they would be tariff damage related,” Agriculture Secretary Sonny Perdue said to Reuters on Tuesday.

Any change in compensation could hit soybean producers the hardest.

The USDA allocated almost US$4 billion in direct payments for soybean growers. The payments are calculated at US$1.65 per bushel.

China and the U.S. remain in a trade war in which American soybeans are caught. Since the USMCA doesn’t include a large soybean component, receiving less than what the USDA originally promised could be challenging for farmers.

“That’s not something I wanted to hear,” John Heisdorffer, president of the American Soybean Association, told Farms.com today. “The USMCA will not increase the sales of soybeans to Mexico and Canada, and markets are expected to be down again today.

“I would think that most farmers are looking forward to that other half of the payments expected this winter.”

Farms.com has reached out to the USDA for details on which commodity payments could be affected by the new NAFTA agreement.


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The FCDC and AgSmart Bring Plant Breeding to a Wider Audience

Video: The FCDC and AgSmart Bring Plant Breeding to a Wider Audience

In the vast prairies of Alberta, Olds College’s Field Crop Development Centre (FCDC) stands as a beacon of innovation and research in the agricultural world. The institution has become a key player in advancing agricultural technologies and practices. The FCDC’s commitment to applied research has driven them to seek effective means of disseminating their findings and creating a positive impact on the farming community.

One such avenue that aligns with their mission is AgSmart, an event dedicated to showcasing cutting-edge agricultural technologies. The coming together of the FCDC’s annual Field Day and Ag Smart has proved to be a natural fit, fostering a synergy that benefits both parties and propels the agriculture industry forward. The FCDC Field Day took part in conjunction with AgSmart for the first time this week on Aug. 1-2 in Olds, Alta. FCDC Program Director Kofi Agblor and Olds College VP of Development Todd Ormann sat down for an interview with Marc Zienkiewicz to discuss the significance of the two events taking part together and what the future holds.

The Intersection of Research and Technology The essence of the FCDC lies in its dedication to plant breeding and new seed varieties, particularly barley and triticale. While conducting research is essential, it becomes meaningful when its benefits are shared with the wider community. This is where AgSmart steps in, providing a key venue for the FCDC to showcase their research. This union between research and technology creates a holistic and enriching experience for farmers, ranchers, and industry professionals, the pair said.

Seeds as Technology For the FCDC, the partnership with AgSmart goes beyond mere event collaboration. It is about creating an environment that bridges the gap between seeds and smart technology, Ormann said. The college believes that for technology to truly revolutionize agriculture, it must begin with a strong foundation — high-quality seeds. As the saying goes, “it all starts with a seed.” To demonstrate this critical aspect, the collaboration aims to showcase the seed value chain as an integral part of the smartphone.

The Birth of a Powerful Alliance The idea of joining forces emerged when staff realized the potential synergy between AgSmart and the FCDC Field Day. With just a few days separating the two events, a proposal was put forward to merge them. The marketing and communications teams from both sides worked seamlessly to ensure the essence of both events remained intact, creating a powerful alliance that leverages the strengths of each, Agblor said.

Driving Advancements in Breeding For Agblor, the partnership with AgSmart has tremendous potential to drive advancements in breeding and other technology. With technologies like drones and imaging becoming integral to phenotyping, breeding is no longer confined to vast fields to assess thousands of plants manually. Instead, it benefits from the data-rich insights brought about by smart technologies. These advancements make breeding more efficient, precise, and instrumental in shaping the future of agriculture.

Overcoming Challenges Together While the partnership between Olds College and Ag Smart has been a resounding success, there are challenges on the horizon. Securing stable funding for long-term breeding initiatives is crucial to sustain progress. The college is committed to navigating these challenges and investing in agriculture’s future sustainably, Agblor said.

 

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