Capitol Report

Capitol Report Capitol Report

Scope 3 Emissions On June 17, 2022, the NPPC and other agricultural groups filed requests to the U.S. Securities and Exchange Commission about farmers’ requirements on climate disclosure rules. The NPPC declares that these requirements are troublesome and useless; moreover, these requirements will cause farmers to acquire expensive reporting that will delay farm environmental performance and violate federal law. The pork industry exhibits only one-third of 1% of U.S. climate emissions. The requests filed by the NPPC and ten other agricultural groups ask that the Securities and Exchange Commission abolish or revise the Scope 3 emissions disclosure requirement and the proposed rule to secure the alignment of Greenhouse Gas emissions with federal emissions reporting programs and federal law protecting livestock farmers from costly, inaccurate and unduly burdensome GHG emissions reporting. According to nppc.org, “Costs associated with the proposed rule would be significant, especially for small to mid-sized farms and would lead to industry consolidation and further impact not just rural communities where those farms are located but the ability of every American to enjoy bacon with breakfast.”

Diseases, Workforce, and Exports Panel experts from NPPC at World Pork Exposition discussed legislative priorities of foreign animal diseases, workforce, and exports. For the first time in 40 years, African Swine Fever was detected in the Western Hemisphere, and protection of the U.S. Borders has never been more prominent. Dr. Liz Wagstrom, NPPC Chief Veterinarian, asked lawmakers for extra funding to help programs prevent and prepare for an outbreak. This funding will add more U.S. Customs and Border Protection agricultural inspectors, the National Animal Health Laboratory Network, and more staff for the USDA Animal and Plant Health Inspection Service’s Veterinary Services. Along with this, the labor shortage in the pork industry has continued to increase over the last year. Pork Producers play a vital role in our economy and are essential for rural America to thrive. To this issue, Congress must to take action on the H2-A Visa reform. Currently, this visa only pertains to seasonal farm workers. Producers want to extend this visa year-round. On the other hand, implementing new trade agreements and expanding the ones we have is vital to the pork industry’s growth. Maria Zieba, NPPC assistant vice president of international affairs, declares, “It’s vital for the U.S. pork industry to strengthen relationships in the Asia-Pacific region. CPTPP would put us on a level playing field with other pork trading countries, such as the EU. We are also encouraging the Biden administration to address market disparities as part of ongoing IndoPacific Economic Framework negotiations.” Taking these actions now will impact the pork industry for years to come.

Impact of Ukraine and Russia War In April, the National Pork Board held a webinar discussing how the Ukraine and Russian war impacted fertilizer, feed, and the livestock markets. According to the research done by Rupert Claxton, Meat Director at Gira, Russia accounts for 13 percent of globally traded fertilizer value. Because fertilizer prices are increasing, Claxton believes that farmers will conserve the fertilizer they already have or buy less, which will most likely lead to lower global yields and higher grain prices. In addition, Ukraine and Russia are heavy exporters of oilseeds and

grain. Before the invasion, prices were already rising; however, Claxton stated that we have seen these prices before; hopefully, it will encourage farmers to put some fertilizer on the ground to enhance their yields. Regardless of the war, weather conditions, and the increase in feed costs, swine production has remained positive. Currently, hog prices have gone up to about $16 per pound. Joe Kerns, partners for production agriculture, explains that we could continue to see these numbers for possibly the next two years.

For more information, watch the webinar over this topic at www.porkcheckoff.org/news.

Pork Industry Contributions The NPPC issued a new economic report featuring how American pork producers are vital contributors to the United States’ agricultural and overall economy. Holly Cook, NPPC staff economist, states, “From farm to fork, the combined economic contribution from hog production and pork processing supports more than 600,000 American jobs and generates $178 billion of direct, indirect, and induced sales that equate to $57 billion in valueadded GDP.” In addition, the pork industry creates substantial economic activity through feed inputs. The two primary feed inputs contributing to the estimated 56% of U.S. production costs are corn and soybean meal. Terry Wolters, NPPC president, claims it is essential to share this information with America because when he looks at the analysis, it makes him feel proud to see the impact he has helped create on the U.S. pork industry.

Global Events in Relation to the Pork Market Between African swine fever, drought and war in Eastern Europe, there is a complicated global market for agriculture. However, the National Pork Board stated in a news release on July 8th, that there are potential opportunites for U.S. pork due to pricing trends. For more information, watch the webinar over this topic at www.porkcheckoff.org/news.

Moving Forward At World Pork Expo, NPPC exposed a new brand idea to shape the pork industry’s future. NPPC claims they will ensure that pork producers’ goals are met. These goals include “operate to the high standards producers set, advance sustainability and animal health, and expand global markets.” With issues arising for U.S. Pork Producers and the food production outlook changing, industry leaders heavily involved in the food supply chain have developed a deliberate plan to focus on NPPC investors’ top priorities. These priorities include trade, foreign animal diseases, labor, and producers’ freedom to operate. Ultimately the NPPC is generating a new course for change in order to bring new ideas to the table and address issues with a different perspective. This new branding allows the organization to move forward with a new face that demonstrates NPPC’s mission as the voice of the U.S. pork industry nationally and globally. This five-year plan is expected to go in affect January 1, 2023.