Organization Visits – Washington, D.C.

US Grains Council
Attended by Zach Townsend, Lynn Moore, Ross Weber-Chair, and Amanda Ahrens-Scribe

Kimberly Atkins the Vice President and COO of the U.S. Grains Council presented and explained the role of the U.S. Grains Council to our group.  The council works in more than 50 countries and the European Union to develop markets to help enable trade for Barley, Corn, Grain Sorghum, and co-products of those crops such as Ethanol and Distiller’s Dried Grains with Solubles (DDGS).  Their theme for 2018 is “Friends and Frontier”, which they would like to reconnect friendships with Mexico, Korea, and others and find new ways to move demand to other countries.

Looking at bi-lateral and tri-lateral trades, the U.S. is behind and we need to speed up to the rest of the World.  Withdrawing from TPP has really hurt the trade with Asian Markets. Mexico doesn’t want a bilateral trade agreement.  They want NAFTA or they will pull out and find other markets to import from.

Ag Facts:

– When Trade Works, the World wins.  95.7% of the world’s population live outside the U.S.  Ag is the U.S. Foreign trade Champion, Falling to move forward on trade means falling behind.  The flow of goods, ideas, capital, and people is essential for prosperity. More than 9% of the anticipated population growth over the next 35 years will be outside the U.S.  

– No matter how you measure the effects, USDA’s Market Access Program and Foreign Market Development Program consistently contribute to the economic development across America.

– 1 in every 1o acres of American farmland harvested goes to Mexico or Canada.  

– US Corn exports to Canada and Mexico have increased more than 7x since 1994

– Mexico is a vitally important Ag Customer; #1 Buyer of U.S. Corn- (524 million bushels), #2 Buyer of DDGS (1.9 MMT), #2 buyer of U.S. sorghum (23.8 million bushels), #1 Buyer of US Barley (5.3 million bushels

-Global Trade boosts U.S. farm income

– 32% of U.S. gross farm income comes directly from exports

– Every $1 Billion of U.S. Ag exports requires 8,000 American Jobs

– U.S. Ag Exports= $135 billion in 2016, equivalent to building 34 skyscrapers

-Corn: 48 million metric tons of corn, 1 out of 3 planted corn acres is exported, worth $9 billion, Top buyers Mexico, Japan, Columbia

-Ethanol: 1.02 billion gallons of ethanol, 1 out of 15 gallons produced in the U.S. is exported, worth $1.8

   Billion, Top Buyers Canada, China, Brazil

– DDGS: 11.6 million metric tons of DDGS, worth $2.3 Billion, Top Buyers China, Mexico, Vietnam

Our group enjoyed learning more about the U.S. Grains Council and the continued importance of foreign trade.   

National Farmers Union
Rob Larew – Senior Vice President of Public Policy and Communications
NFU Overview

• Structured like Farm Bureau
• Perception is, FB=R, NFU=D (However, Oklahoma has NFU largest membership)
• 1902 – Cooperative Model Focus
• Provide farmers a fair shake in the marketplace
• General Farm Organization
• Recent Vice-President – Kansas Native
• Current Board Member – Donn Teske – Kansas
• Little influence in the SE region of the country
• Each state is an independent association of the state organization Other things to know about NFU:
• Grassroots organization – farmers on the ground making a living, maintain and pass on agriculture.
• It’s all about the farm economy, how is it going to improve the lives of farmers and ranchers (credit, risk management, )
• Ag Working Together on Issues (immigration, crop insurance, )
• org

Farm Bill – movement next month (March)

• Crop Insurance
• ARC/PLC – improve the current process
• Dairy Farms – focus on safety and not failing
• Mergers and Consolidation of farms is a challenge
• Consumer Price Index How does NFU affect farmers?

1. Fewer Options
2. Staying Innovative
3. Impact Prices Immigration:

• Ag Workforce Coalition – member
• Need a worker VISA program
• Need certainty in the workforce Mental Health:
• USDA has a program on books in the Farm Bill, but it has not been fueled or
• We need to add resources
• Opioids – family farms are more likely to be impacted
• NFU – trying to raise awareness with a focus on rural health care centers
• Ag Stress Programs
• Engaging rural communities

National Cattlemen’s Beef Association
NCBA Overview

• Around since 1890’s
• Past President – Kansas
• Largest and Oldest
• Focus on Cattle and Beef Industry
• Address access to markets
• Transportation Issues
• Headquarters (Denver)
• Beef check-off largest contractor
• Policy Team (DC Office)
• Set-Policy on Cow-Calf Production
• Affiliates in 46 states
• Over 700,000 producers in the beef industry
• 150,000 members (beef production)
• Beef Exports (Japan, Korea, Mexico, Hong Kong, Canada) Trans-Pacific Partnership (TPP):
• Tariff 38%
• Looking at Japan for a bilateral agreement
• Trump is trying to renegotiate an agreement with Korea North American Free Trade Agreement (NAFTA):
• Created billion $ markets in Mexico and Canada
• Restructuring NAFTA with Mexico and Canada, if not?
• Australia and New Zealand looking open markets to
• The US needs to open markets and access to products
• Asia is becoming a new market for beef
• Korea – Costco only sells American beef; they restock their shelves four times per
• Japan – all the remaining items not sold in the US is a big market in Japan (beef tongue $20) or about $1.00 per

Farm Bill:

• Foot & Mouth Disease
• Plum Island houses 75%; Mexico & Canada 25%
• 23 strains of FMD around the world
• FMD documents found in a cave when looking for Osama Bin Laden
• An outbreak would impact all sectors of the economy
• Ag Research, asking for $150 million/year for 5 years Transportation:
• ELD’s – mandate was passed four years ago
• DOT didn’t reach out to agriculture/livestock sector very well
• 90-day wavier until March 18th
• Issues “hour of service” with live hauls
• Asking for a 1-year delay for livestock and insect haulers
• DOT has been petitioned for a waiver, up to 5-years
• Concerns: off-load every 11-hours, increases cost, driver shortage, weather

Food Marketing Institute – the voice of food retail
David Fikes – Vice President of Communication & Consumer Affairs Originally from Arkansas

• 20 Years of career was spent as an Episcopal Priest Moved to DC to find a wife
• The goal of the Food Marketing Institute: Feeding Families. Enriching Lives.
• How much time and energy is spent reaching out to educate?
• More to retailers vs. end users
• Our members (retailers) want to be the ones educating their consumers
• More time is spent gathering information from the consumers to understand consumer needs
• Consumer buying habits are changing
• Consumers used to go grocery shopping for an entire week, that is no longer the average
• Most consumers buy groceries for 1 or 2 meals
• The average consumers visit a store 1.6 times per week Consumers use an average of 5 different venues/retailers
• The average supermarket carries 38,000 items
• The average supermarket profits 1-2% per grocery item

Consumer used to ask these three questions when grocery shopping:

1. How much does it cost?
2. Is it convenient?
3. How does it taste?

GMO-FREE diets:
FMI research and interviews indicate that only 1 out of every 60 GMO-Free consumers can explain why we should not consume GMOs, or what GMO is

This clarifies we have a PR issue – a disconnect with consumers.

Packaging is Challenging:

The implantation of QR Codes and Smart Labels will provide more insights on package contents in comparison to our current nutrients labeling on packaging.

FMI is spending a great amount of time on digital “click list” shopping applications and newest emerging issues for FMI members

NASDANational Association of State Departments of Agriculture

NASDA grows and enhances agriculture by forging partnerships and creating a consensus to achieve sound policy outcomes between state departments of agriculture, the federal government, and stakeholders.

Top 4 priorities NASDA is working through now:

• Cooperative Federalism to advance agriculture
  • ENASDA calls for a renewed commitment to Cooperative Federalism – a robust partnership and role for states in federal policymaking – to ensure agriculture’s economic stability while guaranteeing safe and accessible food. Effective federal-state partnerships are needed now more than ever.
• Food Safety Modernization
  • FSM was passed in 2011 as an overhauled system by the FDA This is problematic as FDA has never regulated food
• Trade
  • Currently pursuing a bi-lateral trade
  • NASDA works at the state level to make movement on work that is done getting accomplished
• Farm Bill
  • Identify areas they want to focus on.
  • Animal Disease Prevention Trade & Export Promotion Specialty Crop Block Grants Invasive Species Conservation
  • Research, Education and Economics Food Safety

Key details for NASDA:

• Digging into American Farmers & Families Make connections and educate
• NASDA was very interested in knowing what our issues are in Kansas and what we were looking to learn about.
• Topics discussed, were NAFTA, immigration and its effects on the western part of our state, mental health and more.

Pet Food Institute
Peter Tabor, Daniel Nat-Davies, and Mary Emma Young Mary Emma Young spoke highly of Dr. Aldrich at K-State

Mary Emma Young – Communications Director with PFI. Used to work at CropLife America Daniel Nat-Davies – Business Manager; also does Market Access Programs

Pete Tabor – VP of International and Regulatory Affairs. Works with USDA and FDA. Joined PFI after 15 years with FAS

• Business Roundtable and US Chamber NAFTA day – PFI was involved with those discussions Personal introductions by Kellen, Patrice, Brian, Gimmie Jo, and Jared
• Mary Emma had the opportunity to work with JJ when he worked with the Center for Food Integrity PFI is a staff of 6. Getting a new CEO at the end of the month – Dana Brooks.
• Established in 1958 with 25 producer members; 60+ producer members (food safety, lab testing, etc.). Account for 98% of U.S. food manufacturing.
• Supply chain safety is a very important topic for members; vertical integration is a key point of that
• Their mission – “committed to helping dogs and cats live long and healthy lives.”
• FSMA and Trade; Support pet food innovation
• American Pet Products Association handles other small animal/companion animal products. PFI only handles dog and cat food.
• Pet food industry is a very competitive industry – commercials on tv show one company that states their product contains an ingredient that another does not have, as an example. They respond to consumer demand. PFI’s role is to provide fact-based information. To talk about corn, by-products, regulations, etc. PFI is at the end of a very complex ingredient stream.
• US sales of dog and cat food exceeded $28 billion in 2016. 180 million dogs and cats; almost 2/3 of households have a cat or dog. Lots of growth in the premium market – expectation that food mirrors human food.
• Pet food was largely recession-proof.
• PFI members directly employ 30,000 people in facilities across 30 states
• Pet food manufacturing industry contributes 398,416 jobs within and related to the industry (AFIA). Kansas is #3 state, with 33,381 direct and related jobs.
• Partners – NGFA, AAHA, AVMA, NRA, Pets in the Classroom, HABRI, AFIA, Petfoodology (Tufts University), Pet Partners
• Diversity in Pet Food Products
• Dry, Wet, Semi-Moist, Treats, Chews

Novel foods

• Raw

Communicating about Pet Food

• GMO labeling, SmartLabel, Traceability, Welfare, Antibiotics, Labor
• Re-launched website in Became active in social media (Twitter)
• PFI is neutral on raw pet food as a trade association. They do advise the information for Salmonella and Listeria from regulatory agencies.

FSMA –

• Animal Food Rule – CGMPs, hazard analysis and risk-based preventive protocols, recall plan
• Foreign Supplier Verification Program
• FSMA inspections under way now; conducted now by FDA and later by state officials

Held to a different standard; not a higher standard, just a different standard 3,000 hours reviewing the proposed FSMA rule

FDA response on FSMA – larger companies have the ability to do more damage. AAFCO – state regulation in pet food (American Association of Feed Control Officials)

Trade – exports roughly $1.4 billion. Canada and Mexico are roughly ½ of export markets Looking to grow in China, Korea, etc.

Market Access Programs (MAP)

• Increase the export of S. pet food and treats
• Address trade barriers
• Educate pet owners, increase awareness of pet food value
• Work with other related organizations (veterinary organizations, schools, government offices, humane groups)
• Have in-country representatives in approximately 14 countries
• They attend pet shows, events, etc. to speak about the advantages and demand for U.S. pet food
• China $421,000 MAP program in 2018 Mexico $211,000 MAP program Taiwan $201,000 MAP program Colombia $181,094 MAP program

Middle East (UAE and Israel) MAP program
Additionally, Central America, Caribbean, Philippines, etc. Total grant of $1.4 million and PFI does a 35% match

Education Programs

• Trade shows
• Community Events
• Schools
• Veterinary workshops/seminars
• Social media

Currently, have events scheduled in China in April and probably Taiwan in May Solicit input from PFI members

PFI market and analysis and reviews

Conduct market studies and reviews by 3^rd party firms

Start with limited funds and either grow to curtail activities depending on program impact, effectiveness Conclude MAP activities once our activities have established US pet food’s position in the market in Japan

American Farm Bureau Federation 

Introductions were provided by the KARL participants – Rob, Amanda, Lucy, Brian, and Kellen Executive Director of Public Policy, Dale Moore

Executive Director of Communications, Mace Thornton

• Media relations – proactive approach and to land AFBF in as many top-tier media outlets as possible
• Dale shared some information about WOTUS First strategy was to be proactive with the “Ditch the Rule” campaign. If you are an executive agency, don’t get on anyone’s stage. At one point there were 6 different committees on the Hill holding meetings on WOTUS. It is not about headlines or news, but it is about providing information ahead of the needle. One of the time when the lobbyists take a step back and allow the communicators to do their job.

• 7 years ago, or so the agency was very Now they all sit down together and plot their strategy forward. Makes them a more grassroots organization and allows them to be more collaborative. In his words, “they are there.”
• On the lobbying team, there are 16 federal registered lobbyists. The economist is a federal registered Among the 51 affiliates there are probably another 70 or so registered lobbyists. Ryan [Flickner] does not report to him, but he can be incredibly effective.
• Mace has been with AFBF for almost 28 Was with KFB for almost 5 years. Started as a general reporter for the McPherson Sentinel.

Annual Convention

• Mace received 230 media credential requests during annual Pulled the tables because they were concerned they were going to run out of space.
• Huge victory for the organization to have the president share the podium

• Mace was able to spend time with his speech writer a couple of weeks before about ideas and thoughts that might resound with agricultural folks
• It is not AFBF endorsing Donald Trump, it is Donald J. Trump endorsing agriculture
• Ray Starling and three other individuals that work in the secretary’s office started out at AFBF
• Connections work down the road as something else pops up. As someone is a governor, county commissioner, senator. Being a good communicator is helpful
• Had 16 ag attaches at Also invited additional ag organizations as a new idea.

Having a grassroots organization calling the White House is NOT going to work. Must have senators and congressman go to the President and extol the benefits. Talk about pulling out has mediated to renegotiating

Spoke about Gregg Doud’s confirmation.

16 state policy specialists on policy, economy, and legal were involved in Farm Bill topics Agricultural labor as it relates to immigration reform is a LARGE topic. Still working to put together a policy that works. AFBF Board voted unanimously yesterday to support the House version that is currently on the table.

AFBF has a fairly active litigation team. General counsel weighs in on different topics.

Electronic Logging Devices – (Dale) We are working on it. Secretary Purdue is working with Zippy Duvall and a broad coalition to hold off. President Duvall’s topic this week is on that topic, to explain how important that topic is to AFBF.

Objectives for AFBF for 2018:

• Trade
• Immigration Reform
• Farm Bill: on time that meets farmers and ranchers needs
• Regulatory Reform: 70 years since Administrative Procedures were enacted. Gives agencies deference.
• Process: WOTUS, Federal Grazing, Broadband, Endangered Species Some of the fighting and pushing back on regs. Some are monitoring. Interesting conversations
• Tax reform was on the list last year. It is now in the process of being enacted, so it is being monitored.
• Broadband – really great conversation on future of broadband
• Brian provided information that it takes him over an hour to upload a minute of video
• Mace- WOTUS lawsuit that was filed in Texas
• Nationwide stay is in place, but EPA has sued and AFBF has counter-sued to keep it from going into effect
• Phase 1) Rescinding the rule Phase 2) Reworking the rule

If you can’t FLOAT us, it’s not WOTUS

The President of AFBF, Zippy Duvall, is fully supportive of alignment between ag organizations. He charged Mace and his shop with reaching out to American Farmers Union and the opioid crisis would be unifying. Farm Town Strong information program (74% of farmers and ranchers either know someone or have a friend or family member that have an opioid problem) #1 issue – need to break down the stigma that it is an addiction and not that they have a weak moral compass. (Farmtownstrong.com due to the fact that the strength of our rural communities will help overcome this challenge). Ann Hazlett (USDA-RD) has been very supportive on this topic and have been outstanding. Monday, March 12 8:00 pm there will be a program on RFD-TV with Zippy Duvall, Roger Johnson and Ann Hazlett on the opioid crisis.