July 14, 2017
CapitalPress.com
15
EU-Japan trade agreement Bean consortium to
move forward with
worries U.S. ag groups
or without UI
Meat matters
By CAROL RYAN DUMAS
Capital Press
U.S. agricultural groups
warned of the fallout after
President Donald Trump
pulled out of the Trans-Pacific
Partnership, and less than six
months later the first reper-
cussions have materialized
— the EU has penned a trade
deal with Japan, a major mar-
ket for U.S. farm exports.
The European Commis-
sion last week called the new
Economic Partnership Agree-
ment with Japan “the most
important bilateral agreement
ever concluded by the EU,”
saying it will remove the vast
majority of duties and open
the Japanese market to key
agricultural exports.
American Farm Bureau
economist Veronica Nigh said
the agreement is a significant
threat to U.S. agricultural ex-
ports to Japan, which consis-
tently ranks as the fourth-larg-
est market for the U.S. Japan
imported $11 billion in agri-
cultural goods from the U.S.
in 2016.
In her analysis of the
agreement, she said Japan
continues to maintain high
tariffs on agricultural goods,
especially compared to other
developed countries.
“Reductions in these tar-
iffs will certainly mean great-
er sales for the country able to
reach and ratify a trade agree-
ment,” she said.
That’s why U.S. agricul-
ture celebrated the comple-
tion of the TPP in February
2016 and mourned the U.S.
withdrawal in January. The
EU recognized the U.S.
withdrawal from TPP as an
opportunity, and its negoti-
ations with Japan went into
hyper-drive, she said.
The agreement “likely
means that we will lose mar-
ket share in an important
market — that’s what tends
to happen when you’re out-
side looking in on a bilateral
FTA,” she said.
It could lead to signifi-
cant erosion of U.S. market
share for pork, beef, cheese,
processed foods and wine.
The EU already has a strong
presence in Japanese markets,
which a significant tariff ad-
vantage will only increase,
she said.
Carol Ryan Dumas/Capital Press File
Cows move toward the milking parlor on Bettencourt Dairy No. 1
in Wendell, Idaho. A new trade agreement between the European
Union and Japan threatens one of the largest export markets for
U.S. agricultural products such as cheese, pork and beef.
Dairy impact
The agreement includes
better access for EU cheeses
and other dairy products, such
as milk powders and butter,
said Shawna Morris, vice presi-
dent of trade policy for Nation-
al Milk Producers Council.
“This agreement is a fresh
reminder of how critical it
is that we get in the game as
well,” she said.
The EU is negotiating with
other countries as well, and
the other major dairy supply
countries of the world are also
actively pursuing free trade
agreements for their countries.
It’s critical the U.S. do the
same, she said. Japan is a siz-
able market for U.S. dairy and
the third largest for U.S. cheese.
U.S. dairy sales to Japan
were $205.7 million in 2016,
down 25 percent from 2015,
according to the U.S. Dairy Ex-
port Council.
The European Commission
said the agreement with Japan
will scrap duties on EU hard
cheeses and ensure the protec-
tion in Japan of more than 200
geographic indicators.
The U.S. dairy industry is
always concerned about geo-
graphic indicators, which the
EW uses to protect common
food names such as parmesan
or feta cheese to restrict com-
petition.
However, Japan has been
setting a pretty good example
with its system on geographic
indicators, she said. It requires
an application be submitted,
reviewed and opened for public
comment, evidence and argu-
ments before the government
makes a decision.
“To our knowledge, on the
GI side of things, it’s at the be-
ginning, not the end, of the pro-
cess,” she said.
The Consortium for Com-
mon Food Names, for which
she is the senior director, par-
ticipates in such processes, she
said.
The EU is also negotiating
a deal on GIs with Mexico and
concluded one with Canada last
year, said Beth Hughes, direc-
tor of international affairs for
the International Dairy Foods
Association.
“We still need to see the
details, but we are concerned
about which common food
names will be affected and
how that will impact U.S.
cheese exports to Japan,” she
said.
The EU-Japan bilateral
agreement could be an “om-
inous portent” for U.S. dairy
exports to Japan, she said. The
agreement enhances the EU as
a competitor to U.S. dairy in
Japan now and in the future.
In the bigger picture, USDA
projects U.S. milk production
to grow 23 percent over the
next 10 years. Given that U.S.
exports today account for 15
percent of production, there
needs to be export opportuni-
ties for approximately 80 bil-
lion pounds of milk over the
next 10 years, she said.
“Bilateral agreements, es-
pecially in the Asia-Pacific re-
gion, are critical if we are to at-
tain our future export potential
and continue to support Amer-
ican jobs,” she said.
National Pork Producers
Council is also concerned and
has renewed its request that the
Trump administration begin
negotiations on a trade deal
with Japan.
“The United States must
quickly finalize a trade deal
with Japan if it wants to main-
tain that important market, said
Ken Maschhoff, NPPC presi-
dent, in a press release.
“We can’t stand by while
countries around the world
negotiate agreements that give
them a competitive advantage
over American products,” he
said.
Japan is the highest-value
market for U.S. pork, import-
ing $1.56 billion in 2016 and
26 percent of U.S. production.
Those exports added more than
$50 per head to the average val-
ue of all hogs marketed in the
U.S.
“Producers are very depen-
dent on exports … we can’t af-
ford to lose exports in our No. 1
market,” Maschhoff said.
The EU is an aggressive and
formidable competitor in the
Japanese pork market and is the
second-largest supplier after
the U.S.
European exporters stand
to gain a significant advantage
through the tariff reductions ne-
gotiated in the agreement with
Japan, the U.S. Meat Exported
Federation said in a statement
to Capital Press.
Japan is clearly moving for-
ward in reducing agricultural
trade barriers for other suppli-
ers, USMEF stated.
The U.S. also shipped $1.51
billion in beef to Japan in 2016.
Although the EU isn’t current-
ly a major beef supplier to Ja-
pan, it has become a factor in
Japan’s imports of tongues and
other varietal meats.
Through the agreement, du-
ties on EU beef variety meats
will be slashed initially and
phased to zero over the next 11
to 13 years, putting the U.S. at
a significant disadvantage. Du-
ties on EU chilled and frozen
beef cuts, currently at 38.5 per-
cent, will initially be cut about
10 percent and phased down to
9 percent over 15 years.
“Meanwhile, U.S. beef
continues to pay 38.5 percent
duty and remains subject to
Japan’s quarterly beef safe-
guards,” USMEF said.
Research ranch seeks to balance conservation, grazing
By JOHN O’CONNELL
Capital Press
HAILEY, Idaho — During
his years as executive vice
president of the Idaho Cattle
Association, Wyatt Prescott
was often on the ranchers’
side of grazing-related battles
with conservation groups.
“The science wasn’t there
to support either side of it,”
Prescott said.
Now — as cattle manag-
er at a unique research ranch
owned by the Nature Conser-
vancy and Wood River Land
Trust — Prescott collaborates
with environmentalists to find
answers to challenges that
have too often triggered con-
flicts over public lands.
The ranch, which includes
10,400 acres of private land
and 11,000 acres of Idaho De-
partment of Lands and Bureau
of Land Management leases,
has been grazed since it was
homesteaded. A developer
purchased the private portion
in the 1980s, planning to build
homes, but sold the develop-
ment rights through a USDA
land-preservation program.
The conservation groups
bought the ranch planning to
turn it over to the Idaho De-
partment of Fish and Game.
John O’Connell/Capital Press
Wyatt Prescott, right, instructs ranch hands on horseback June 7 at Rock Creek Ranch near Hailey,
Idaho, following a cattle drive.
Those plans fell through, so
they signed a memorandum
of understanding allowing
University of Idaho’s College
of Agricultural and Life Sci-
ences and College of Natural
Resources to use the property
for rangeland research, com-
plementing work done at UI’s
pasture-based research facili-
ty in Salmon.
“Idaho has so much of
this type of rangeland, and
we need to figure out how
to best meet the needs of all
of the different users on this
rangeland landscape,” said
Cameron Packer, who works
for the owners as the ranch’s
stewardship coordinator. “We
want to improve habitat, con-
serve the rangelands for future
use and increase their overall
sustainability.”
Research at the ranch com-
menced in May 2016. UI will
compare the well-being of
150 cow-calf pairs raised on
the rangeland with the same
number of pairs raised on pas-
ture in Salmon.
Prescott, who works on
a contract with UI, said re-
search from the initial season
suggests cattle that disperse
farther away from ripari-
an meadows and graze the
hillsides tend to gain more
weight. Prescott explained the
finding is important because
the ranch hopes to select for
both cattle that convert feed to
weight efficiently and avoid
overgrazing environmentally
sensitive meadows.
Another study starting this
summer will analyze the im-
pacts of six different grazing
densities on plants of impor-
tance to sage grouse. Prescott
suspects grazing will prevent
forage from going to seed and
keep meadows green longer.
“Through using grazing
Credit program planned for Teton flood-irrigation project
By JOHN O’CONNELL
Capital Press
VICTOR, Idaho — A
partnership seeking to bring
back flood irrigation in Teton
Valley to replenish declining
groundwater levels has start-
ed research on a credit system
that would offer participants
financial incentives.
Surface flows in the Teton
River watershed have steadi-
ly declined as irrigators have
installed efficient sprinkler
systems to replace flood irri-
gation, which once boosted
the water table.
Officials estimate ground-
water levels in the valley
have dropped 55 feet since
irrigators started phasing out
flood irrigation in the 1970s,
and the valley’s junior water
rights are often shut off as a
result.
In December of 2015,
local irrigators, the Teton
County Farm Bureau Federa-
tion, local cities and counties,
Friends of the Teton River,
Teton County Soil and Water
Conservation District, Water
District 1, the Henry’s Fork
Foundation and others formed
the Teton Water Users Associ-
ation to reverse the trend.
The coalition is amassing
funds to repair long-aban-
doned flood-irrigation in-
frastructure, enabling farm-
ers to flood irrigate within
their existing water rights
in the spring, when surplus
water is available, before
switching back to sprin-
klers later in summer. The
recharged groundwater re-
turns to the river about three
months later, when it’s most
needed by fish, wildlife and
irrigators.
By SEAN ELLIS
Capital Press
GLENNS FERRY, Idaho
— Idaho Bean Commission
board members have decided
to move forward with a multi-
state dry bean consortium
with or without a memoran-
dum of understanding from
the University of Idaho.
Dry bean commissions,
processors and land grant
universities in Idaho, Colo-
rado and Wyoming agreed
in 2013 to form a regional
consortium that would work
together on projects that ben-
efit the bean industries in all
three states.
The final step in making
the consortium a reality are
signed MOUs from the land
grant universities. The Uni-
versity of Wyoming and Col-
orado State University signed
theirs nine months ago.
During their regular quar-
terly meeting June 29, IBC
commissioners
expressed
frustration at the amount of
time it is taking for UI to sign
its MOU.
“If it’s taking this long to
get something like this MOU
approved, what will happen
when we actually want to
reach an agreement on a proj-
ect?” said IBC Administrator
Andi Woolf-Weibye.
When stakeholders from
the three states agreed to form
the consortium, they said its
biggest benefit would be al-
lowing the industry to maxi-
mize research dollars by not
duplicating efforts.
IBC board member Mike
Goodson, a grower from
Parma, said that if it takes
much longer for the MOU to
be signed, “I think this effort
could collapse and I don’t
want to see that.”
Instead of waiting for the
MOU to be signed, the group
decided to work directly with
UI researchers on projects
backed by consortium mem-
Sean Ellis/Capital Press File
Idaho Bean Commission
members have decided to
proceed with a regional bean
consortium with or without a
memorandum of understanding
from the University of Idaho.
bers.
“We’re going to proceed
forward with or without the
(MOU),” said IBC commis-
sioner Don Tolmie, produc-
tion manager of Treasure Val-
ley Seed Co.
University officials de-
clined to comment on the
IBC decision to work directly
with researchers regardless of
whether there is a memoran-
dum of understanding. They
also said the MOU is being
worked on but didn’t say
when it might be signed.
Bean-related issues the
states have expressed inter-
est in working together on
include breeding, fertility, va-
riety testing, water manage-
ment and herbicide testing.
Colorado is a leader in
dry bean genetics, Idaho is a
leader on the agronomic side
of the industry and Wyoming,
which formed a dry bean
commission as the regional
effort was being discussed,
has a plant pathologist.
The IBC will lead a sec-
ond effort to apply for federal
grants that recently became
available for multi-state spe-
cialty crop groups.
That grant program, which
is authorized by the farm bill,
provides several million dol-
lars a year for multi-state spe-
cialty crop groups that focus
on research, food safety, plant
diseases, pest issues and other
crop-specific projects.
With second ‘ag gag’ law struck
down, eyes turn to appeals courts
By MATEUSZ PERKOWSKI
Capital Press
With a second so-called
“ag gag” law getting struck
down, the fate of prohibitions
against secret farm recordings
now rests with federal appel-
late courts, experts say.
Two neighboring states,
Idaho and Utah, enacted laws
barring people from gaining
entry to farms under false
pretenses to film agricultural
operations.
The statutes were prompt-
ed by broadly publicized un-
dercover videos that depicted
animal abuse at livestock fa-
cilities.
A federal judge recently
found Utah’s statute to un-
constitutionally violate free
speech rights, largely on the
same grounds that Idaho’s
law was earlier invalidated.
The ruling in Idaho is al-
ready being reviewed by the
9th U.S. Circuit Court of Ap-
peals, while the Utah opinion
is expected to be challenged
before the 10th U.S. Circuit
Court of Appeals. Together,
the federal appellate courts
have jurisdiction over 15
Western states.
However, the 9th Circuit
is widely viewed as more lib-
eral than the 10th Circuit, po-
tentially setting up a “circuit
split” on the laws that would
invite U.S. Supreme Court
review, experts say.
Despite its conservative
reputation, the 10th Circuit
is likely to uphold U.S. Dis-
trict Judge Robert Shelby’s
recent ruling against Utah’s
statute, said Stewart Gol-
lan, attorney for the Animal
Legal Defense Fund, which
sued to oppose the laws.
False statements, such as
those used to obtain farm
jobs, would likely be pro-
tected under a Supreme Court
precedent that threw out a law
criminalizing lies about mili-
tary service, he said.
“The Supreme Court made
very clear that even untrue
speech can, in many cases,
enjoy First Amendment pro-
tection,” said Gollan.
In the Utah ruling, the
judge found that many po-
tential “false pretenses”
criminalized by the state’s
law would be too innocuous
to cause “legally cognizable
harm,” so they remain pro-
tected as free speech.
Utah’s statute “criminaliz-
es a broad swath of lies that
result in no harm at all,” such
as job applicant claiming
“that he is a born-again Chris-
tian, that he is married with
kids, that he is a fan of the
local sports team,” the judge
said.
John Dillard, an attorney
for the Animal Agriculture
Alliance, said it’s tough to
predict how Utah’s statute
will be interpreted by the 10th
Circuit.
“It’s a case of first impres-
sion,” said Dillard, who sub-
mitted a court brief defending
Utah’s law.
Even if the 10th Circuit
agrees the Utah statute is
unconstitutional, the ruling
would hopefully shed some
light on the type of activities
that can be lawfully prohibit-
ed, he said.
According to the judge’s
ruling, Utah’s statute unlaw-
fully interfered with the cre-
ation of free speech, similarly
to a statute that taxes ink and
paper to suppress the views of
a newspaper.
The right to broadcast a
video would “mean very lit-
tle” if the government could
“circumvent that right by
regulating with impunity the
making of the recording in-
stead,” the judge said.
Since Utah’s law targeted
actions — making false state-
ments and secret recordings
— not actual speech, lawmak-
ers need to understand the
“right reasons” for enacting
laws that affect hiring, said
Dillard.
“If we’re going to consid-
er actions speech, we’ll need
some clearer parameters,” he
said.