Trump looking for positive 'movement' from Cuba - Politico

With help from Catherine Boudreau and Jason Huffman

TRUMP LOOKING FOR POSITIVE 'MOVEMENT' FROM CUBA: Fidel Castro's death on Friday — an event that President-elect Donald Trump greeted with a tweet^[1] that had a celebratory ring to it — placed new emphasis on the question of how the incoming administration intends to deal with the Obama administration's efforts to improve relations with the communist island nation.

Story Continued Below

Trump's incoming chief of staff, Reince Priebus, told^[2] "Fox News Sunday" that the president-elect is "absolutely" willing to reverse President Barack Obama's recent re-establishment of diplomatic relations with Cuba, and that whether the next administration continues Obama's policy will depend on what the government in Havana is willing to do. "Repression, open markets, freedom of religion, political prisoners — these things need to change in order to have open and free relationships," Priebus said. "There's going to have to be some movement from Cuba in order to have a relationship with the United States."

Going back to the campaign, Trump has vacillated in his position on Obama's re-engagement of Cuba — an effort that has been cheered by many in the business community, particularly farm groups, who eye the potential of a nearby market for U.S. goods. Trump had said he was "fine" with Obama's efforts and that "50 years is enough" for the U.S. embargo. But in Miami, during the final months of his campaign, Trump took a more hard-line stance, criticizing Obama's actions^[3] as being weak. "All the concessions that Barack Obama has granted the Castro regime were done through executive order, which means the next president can reverse them — and that I wi ll do unless the Castro regime meets our demands. Not my demands — our demands," Trump told a crowd of 2,500 in Miami in September.

Since his victory, Trump has appointed the head of a pro-embargo political action committee to the Treasury Department's transition team. But in a statement on Saturday, Trump appeared to remain interested in continuing to open diplomatic relations. "Though the tragedies, deaths and pain caused by Fidel Castro cannot be erased, our administration will do all it can to ensure the Cuban people can finally begin their journey toward prosperity and liberty," the president-elect said^[4].

HAPPY MONDAY, NOV. 28! Welcome to Morning Ag, where your host really wants to know what's in the "Mr. Trump's wedge salad," which was part of the Trump family's 24-dish Thanksgiving dinner^[5]. Would Michelle Obama approve? You know the deal: thoughts, news, tips? Send them to jhopkinson@politico.com^[6] or @jennyhops^[7]. Follow the whole team at @Morning_Ag^[8].

THIS WEEK: APPROPRIATIONS PUNT? Congress has until next Friday, Dec. 9, to pass a deal to extend government funding beyond the expiration of the continuing resolution passed in September. Republicans are aiming to pass another CR, with few or no riders, that would provide funding until March or April — effectively punting on 2017 spending questions until the Trump administration has settled into office. Doing so would mean that food-and-agriculture-related priorities that lawmakers would like to accomplish through appropriations — things like delaying the new Nutrition Facts panel implementation date so that it coincides with potential GMO labeling rules — will likely have to wait for a few months. Keep an eye out for word from GOP lawmakers this week on whether their plan for an appropriations punt is on track, and thus whether they'll be heading home for the holidays on or before Dec. 9.

Also going on this week:

— Remember the Farm Bill? Amid all the speculation over Trump's Agriculture secretary search, it almost seems like the ag world has forgotten about its favorite(-ish) topic: the Farm Bill. Well, almost. The Farm Foundation will dig into the issue again on Wednesday, with a forum on potential priorities for the legislation's reauthorization, which is expected in 2018. The forum's lineup of participants is slated to include one of the contenders^[9] for Agriculture secretary: Chuck Conner, president and CEO of the National Council of Farmer Cooperatives. Also set to speak are Scott Faber, vice president of government affairs for the Environm ental Working Group, and Daren Bakst, agricultural research policy fellow at the Heritage Foundation. Details on the forum are here^[10].

— Your last, last chance to weigh in on the glyphosate SAP. (For real this time, probably.) Comments are due on EPA's Scientific Advisory Panel for glyphosate by the end of today, in preparation for the panel's Dec. 13-16 meeting. Along with the new meeting dates — the session was originally scheduled for October — the panel has a few new names on its roster. The membership changes follow concerns by CropLife America that the panel did not have enough epidemiologists and that one of its former members could have faced conflicts of interest. You can rehash the fight over membership here^[11]. File your comments here^[12].

VILSACK 'DISAPPOINTED' BY CHINA STALL ON BIOTECH: The U.S.-China Joint Commission on Commerce and Trade talks last week appear to have yielded little progress on getting China to improve its approval process for biotech crops — long an issue for U.S. farmers. In prior JCCT talks, Beijing committed to more transparent, predictable regulatory approvals for GE crops — a process that now starts only after regulatory procedures have concluded in the U.S. or certain other key nations. Without GE crop approvals by China — an extremely important export market for the U.S. because of its size — U.S. farmers will not start cultivating those new breeds.

In a statement on Friday, Agriculture Secretary Tom Vilsack blamed the process in China for stalling innovation and said that U.S. officials "will be watching the meeting of China's National Biosafety Committee," set for next month.

"We are disappointed that further progress was not made on agricultural biotechnology issues. … Lack of progress on biotech issues will continue to add years to the process of commercializing them, will slow innovation and set back global efforts to address food security and climate change," Vilsack said. "The United States expects that China will fully implement its prior commitments and will work collaboratively with us to address these global challenges in the future." Vilsack's statement is here^[13].

NASSIF OPTIMISTIC ABOUT TRUMP'S IMPACT ON AG: Just before the Thanksgiving holiday, Tom Nassif, president and CEO of Western Growers, expressed optimism about the outlook for U.S. agriculture under Trump's administration. In a column on the organization's website, Nassif explained his "risky" decision to endorse Trump and accept an invitation to join his Agricultural Advisory Committee earlier this year, citing the importance of judicial nominations and his belief that Trump will be attentive to problems facing farmers and ranchers, including labor shortages and "the need to rebalance the regulatory climate."

"The president-elect understands we are unlike any other American industry, and I believe the new administration will work to enact policies that ensure the viability of American food production without undermining the president-elect's determination to secure the border and remove undocumented aliens with criminal records," Nassif said.

Nassif added that Trump understands U.S. farmers reap great benefits from international trade, and thinks the President-elect will seek to better trade deals, not sink them entirely. Read the column here^[14].

RABOBANK: GRAIN FARMERS' PROFIT MARGINS NEGATIVE IN 2017: For the third year in a row, Midwestern corn and soybean farmers aren't expected to have profit margins that cover all of their expenses, according a report on the 2017 outlook for field crops published last week by Rabobank. The forecasted gross margin of $93 per acre next year means that producers who are highly leveraged or got into the business recently are particularly vulnerable to financial distress. Whether margins rise to more sustainable levels depends on if, and how fast, land costs decline, because the prices of other expenses like seeds and fertilizer are expected to hold flat, the report notes.

For wheat growers in the Great Plains, record yields in 2016 more than offset a drop in prices for the grain, improving their profit margins slightly. But gross margins are expected to fall back to 2015 levels of just under $80 an acre. Read the report here^[15].

THE RACE TO WRAP UP COLORADO RIVER TALKS: The U.S. and Mexico are trying to reach a new agreement covering water allocations from the Colorado River before Trump takes office, due to concerns that turning the talks over to the new administration could derail years of careful negotiations, Pro Energy's Annie Snider reports. "Farmers and cities in Arizona and Nevada could face their first cuts in water supplies a year from now, just as the existing agreement ends. Without a new agreement with Mexico, it is unclear whether or how those cuts could be shared across the border, raising the prospect of either deeper, swifter cuts to U.S. states or a bitter cross-border dispute." The full story is here^[16].

TESTER'S TRUMP TEST: Jon Tester^[17], the organic farmer and Democratic senator from Montana, could be a key Democrat in the upper chamber as Trump tries to get his legislative priorities through Congress, since Tester is looking to swing to the middle to defend his red-state seat in 2018. Trump won the state by 21 points, and with Rep. Ryan Zinke^[18] (R-Mont.) eyeing the Senate seat, Tester has called for lawmakers to "start working together," hinted that he would be open to revising elements of Obamacare and indicated that Trump's infrastructure plan could have Democrats' backing. POLITICO has the full story here^[19].

IN CASE YOU'VE BEEN UNDER A MOUNTAIN OF CORN: The EPA on Wednesday released the 2017 mandate for renewable fuels, setting corn ethanol at the statutory level of 15 billion gallons, drawing raves from farm groups and ag-state lawmakers.

"This is critical for farmers facing difficult economic times, as well as for consumers who care about clean air, affordable fuel choices, and lowering our dependence on foreign oil," Wesley Spurlock, president of the National Corn Growers Association, said in a statement. "The Renewable Fuel Standard has been one of America's great policy success stories. ... Although we believe the EPA did not have authority to reduce the ethanol numbers in the first place, we are pleased to see the RVO finally back on track." More on the EPA's announcement here^[20] and here^[21].

IN CASE YOU HAVEN'T RECOVERED FROM THE LAST NOSB MEETING: The National Organic Standards Board just finished its fall meeting, but officials are already preparing for the next one. The board, which advises USDA's National Organic Program, is set to meet April 19-21 in Denver, according to a notice^[22] from the program.

MARK YOUR OUTLOOK CALENDARS: USDA will lay out what's ahead for agriculture at its Outlook Conference this winter, which has been scheduled for Feb. 23-24 at the Crystal Gateway Marriott Hotel in Arlington, Va. This year's theme: "A New Horizon: The Future of Agriculture." More details here^[23].

MA'S INSTANT OATS:

— Farmworkers in the Salinas Valley of California are increasingly malnourished, despite all of the produce they harvest, The New York Times reports^[24].

— Chinese traders are putting their money into things like garlic amid turmoil in the nation's tightly controlled market, Bloomberg reports^[25].

— 190,000 ducks were killed at six farms in the Netherlands this weekend following an avian flu outbreak in northern Europe, Reuters reports^[26].

— Following recent wins at the ballot box, soda taxes are gaining public acceptance, The New York Times reports^[27].

THAT'S ALL FOR MA! See you again soon! In the meantime, drop your host and the rest of the team a line: cboudreau@politico.com^[28] and @ceboudreau^[29]; jhopkinson@politico.com^[30] and @jennyhops^[31]; hbottemiller@politico.com^[32] and @hbottemiller^[33]; ikullgren@politico.com^[34] and @IanKullgren^[35]; mkorade@politico.com^[36] and @mjkorade^[37]; and jhuffman@politico.com^[38] and @jsonhuffman^[39]. You can also follow @POLITICOPro^[40] and @ Morning_Ag^[41] on Twitter.

References

1. ^{^} tweet (twitter.com)
2. ^{^} told (www.politicopro.com)
3. ^{^} criticizing Obama's actions (ww w.politico.com)
4. ^{^} said (www.politico.com)
5. ^{^} 24-dish Thanksgiving dinner (www.aol.com)
6. ^{^} jhopkinson@politico.com (www.politico.com)
7. ^{^} @jennyhops (twitter.com)
8. ^{^} @Morning_Ag (twitter.com)
9. ^{^} contenders (www.politicopro.com)
10. ^{^} here (www.farmfoundation.org)
11. ^{^} here (www.politicopro.com)
12. ^{^} here (www.regulations.gov)
13. ^{^} here (links.govdelivery.com)
14. ^{^} here (www.wga.com)
15. ^{^} here (www.politicopro.com)
16. ^{^} here< /a> (www.politico.com)
17. ^ Jon Tester (cd.politicopro.com)
18. ^{^} Ryan Zinke (cd.politicopro.com)
19. ^{^} here (www.politicopro.com)
20. ^{^} here (www.politico.com)
21. ^{^} here (www.politicopro.com)
22. ^{^} notice (s3.amazonaws.com)
23. ^{^} here (www.usda.gov)
24. ^{^} reports (www.nytimes.com)
25. ^{^} reports (www.bloomberg.com)
26. ^{^} reports (www.reuters.com)
27. ^{^} reports (www.nytimes.com)
28. ^{^} cboudreau@politico.com (www.politico.com)
29. ^{^} @ceboudreau (twitter.com)
30. ^{^} j hopkinson@politico.com (www.politico.com)
31. ^{^} @jennyhops (twitter.com)
32. ^{^} hbottemiller@politico.com (www.politico.com)
33. ^{^} @hbottemiller (twitter.com)
34. ^{^} ikullgren@politico.com (www.politico.com)
35. ^{^} @IanKullgren (twitter.com)
36. ^{^} mkorade@politico.com (www.politico.com)
37. ^{^} @mjkorade (twitter.com)
38. ^{^} jhuffman@poli tico.com (www.politico.com)
39. ^{^} @jsonhuffman (twitter.com)
40. ^{^} @POLITICOPro (twitter.com)
41. ^{^} @Morning_Ag (twitter.com)