Tariffs Take Center State on Podcast
The economic impact of tariffs can be difficult and complex to understand, so David Anderson, Ph.D., of Texas A&M University joins the American Sheep Industry Association’s Research Update podcast this month to discuss tariffs as they apply to both lamb and wool.
“A tariff is simply a tax. We’ve done this forever. Product comes in, it’s subject to a tariff and the importer has to pay that bill. If the product is more expensive to bring into the U.S., then it’s going to see a higher price,” said Anderson, a livestock economist who also writes a market report column for the Sheep Industry News. “In that regard, we can think of it as yeah the importer writes the check, but consumers pay that bill through a higher price.”
Currently, imported lamb from Australia and New Zealand carries a 10-percent tariff. While the United States imports a large percentage of the lamb consumed domestically, it exports a large portion of the American wool clip. And traditionally, most of that exported wool has ended up in China, which was hit with the largest tariffs of any country before a 90-day pause on some tariffs was announced this week.
Anderson tries to make sense of it all, admitting that the wool tariffs are a more complicated situation for American wool growers.
Click Here to listen to the full podcast.
AMS Issues National Wool Review with U.S. Prices
The U.S. Department of Agriculture’s Agricultural Marketing Service issued a rare National Wool Review report with U.S. prices.
Wool in the report was split almost evenly between clean and greasy, with a slight advantage to clean wool sales. Prices ranged from $3.37 per pound clean for 19-micron wool to 2.30 per pound clean for 24-micron wool. Greasy prices in that same range varied from $1.23 per pound to 73 cents per pound.
Click Here for the full report.
Sheep GEMS: What’s Next for Eco-Management Clusters?
Previously, we introduced the concept of eco-management clusters – groups of flocks that share similar climate and management practices. These clusters are the foundation of our approach in Sheep GEMS for building genetic evaluations that more closely consider production environments. We are still exploring the makeup of eco-management clusters, as they undoubtedly differ among breeds. However, one of their important uses is in our study of genotype-by-environment interactions (G×E).
G×E occur when the ranking of animals based on their genetic potential changes depending on the production environment in which they are managed. As an example, consider weaning weights recorded on the offspring of two sires. In one eco-management cluster, the offspring of the first sire weigh more than the second. However, in a different cluster, the offspring of the second sire weigh more than the first. The rankings changed and, so, we have G×E. If the weights of the offspring of both sires were consistently heavier in one eco-management cluster than in the other, clearly one production environment was more favorable for weight gain than the other. However, with no change in ranking, there would be no G×E.
Our genetic evaluations of sheep in the United States currently assume animals rank the same genetically across production environments. While this simplifies comparisons, it might not fully reflect what producers see in their own flocks. Ignoring G×E could limit the effectiveness of selection programs, especially in a country as diverse in both geography and management as the United States. Recognizing and accounting for these interactions might allow us to identify animals that are well-suited to specific production systems. This is especially important for traits that are more influenced by environmental conditions, including growth rates, reproductive success and disease resistance.
In an earlier study at the University of Nebraska–Lincoln, we found that G×E impacted the way animals performed. Using data from Katahdin sheep enrolled in the National Sheep Improvement Program, we compared the performance of the offspring of the same sires in different eco-management clusters. The differences were substantial. We explained about 19 percent of the variation in weaning weights by G×E. Furthermore, G×E accounted for about 12 percent of the variation in parasite resistance, which we measured using fecal egg counts and FAMACHA scores. The choice of the “best” sire in one production environment, therefore, might not be the best choice in another.
We are now testing for the presence of G×E in other breeds, namely Polypay, Rambouillet, Suffolk and Targhee. Our first step is to determine if enough sires have been used in common across enough of the eco-management clusters. That is unlikely for some traits – those not normally recorded in all flocks – but we remain hopeful.
Considering G×E in genetic evaluations does add complexity but, very importantly, it also adds opportunity. It might help us match the right genetics to the right production environments, improving the bottom-line for American sheep operations.
For further information contact Hilal Yazar Gunes ([email protected]). Acknowledgements. We thank the producers participating in the National Sheep Improvement Program for completing an online survey of their management practices. The information on G×E in Katahdin sheep was from research conducted by Brian Arisman. This work was supported by the Organic Agriculture Research and Extension Initiative (grant 2016-51300-25723/project accession no. 1010329), and by the Agriculture and Food Research Initiative Competitive Grant (grant 2022-67015-36073/project accession no. 1027785), from the U.S. Department of Agriculture’s National Institute of Food and Agriculture. The USDA is an equal opportunity provider and employer. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of USDA.
Source: Sheep GEMS
Australian Wool Market Remains Largely Unchanged
The Australian wool market had a fluctuating week, recording both positive and negative movements across different wool types with the end result very little change to the overall market.
With just six selling series remaining in the 2024-25 season, we have a more accurate picture of the national quantity offered. This week the national offering increased to 30,931 bales. Season to date there have been 1,410,070 bales put thorough the auction system. This is 226,420 less than the previous season for a reduction of 13.8 percent.
On the opening day of selling this week, results were mixed. The movements in the individual AWEX Micron Price Guides for Merino fleece ranged between positive 28 cents (17.5 micron in the South) through to negative 33 cents (23 micron in the South). The skirtings recorded minimal movement and the oddments reduced slightly, while the crossbred sector recorded a small overall rise. The result of these market movements was a 1-cent rise in the benchmark Eastern Market Indicator. This was the first daily rise in the EMI in eight selling days.
The news in USD terms was not as positive. Currency fluctuations meant that when viewed in USD, the EMI lost ground, finishing the day 10 U.S. cents lower. On the second day, only Sydney and Melbourne were in operation and again the market movements were varied across wool types and microns. The MPG movements across all sectors ranged between positive 15 cents (28 micron in the North) through to negative 20 cents (19 micron in the North). The skirting market recorded little change while the oddment sector recorded further small falls. The EMI dropped 3 cents for the day. A reversal in currency movement meant this time the news was positive in USD terms as the EMI gained 9 U.S. cents for the day.
Click Here for the ASI Conversion Chart – AWEX Prices to USD Per Pound.
Source: AWEX
Lambassador’s BBQ Featured on Food52
As a result of the American Lamb Board’s New York media visit, Food52 is featuring Lambassador Kareem El-Ghayesh – the pitmaster behind KG BBQ in Austin, Texas – as he cooks up Lamb Bacon, Lamb Rack and a special chimichurri with host Noah Tanen.
In this episode of Food52’s Recipe Drop, Kareem blends his Egyptian heritage with Texas-style barbecue, bringing big flavor and fresh perspective to these delicious lamb cuts.
Food52 is a site where food enthusiasts can find thousands of test kitchen-approved recipes, shop for kitchenware and discuss the results with like-minded people. Recently, the site featured videos and recipes from Kareem and other contestants from Netflix’s Barbecue Showdown, where the best backyard smokers and pitmasters vied to be crowned the next barbecue champion in a fierce, but friendly cooking competition.
Food52’s feature – which was released on May 3 – has already garnered more than 14,000 views.
Click Here to view the segment. The recipes can be found on Food52’s website:
“Our Lambassador program continues to highlight American lamb to thousands of consumers looking to try new flavors,” said ALB Chairman Jeff Ebert. “Kareem has been a huge asset to the program, developing unique recipes and helping more consumers try the unique flavors of BBQ lamb.”
Source: ALB
Legislative Update from Washington, D.C.
The American Sheep Industry Association’s lobbying firm – Cornerstone Government Affairs – offered an update this week on legislative issues in our nation’s capital.
House Ag Advances Reconciliation Bill
Starting Tuesday night and lasting until Wednesday evening, the House Agriculture Committee held a marathon markup of its budget reconciliation text complying with the instructions given by the House Budget Committee in H. Con. Res. 14 Section 2001(b)(1) to cut a net $230 billion within the committee’s jurisdiction. After nearly a 15-hour process, the committee ended up reporting the bill favorably on a party line vote of 29-25.
While the committee was instructed to cut $230 billion, the bill reflected a score closer to $300 billion in cuts in order to reinvest the additional $60 to $70 billion in savings across all titles of the Farm Bill except for Title IV (Nutrition), where most cuts were focused. Republicans defended the recissions to the nutrition title, claiming that the increasing administrative costs of the Supplemental Nutrition Assistance Program should require state governments to become more responsible when administering and regulating food assistance programs, specifically with regards to enforcing work requirements. Additionally, Republicans highlighted that modernizing the farm safety net for farmers and ranchers must be at the forefront of the reconciliation bill.
Democrats heavily criticized the Republican’s bill arguing that the SNAP program helps families access food and that reducing the nutrition title’s funding would decrease benefits and cause many to go hungry. Democrats emphasized that many states would not be able to adequately cover the cost share of the program. Moreover, Democrats stated that sufficiently funding SNAP would increase food demand, benefiting agriculture producers.
From a livestock lens, the bill included orphan programs, funding for marketing loan rates, and promotional programs. Additionally, funding for trade promotion priorities such as the Market Access Program and Foreign Market Development program were doubled as they were in last Congress’s Farm Bill.
The House Ways and Means Committee advanced its bill extending the provisions in the 2017 Tax Cuts and Jobs Act as well as several other favorable agricultural tax related measures. Now that all the committees given reconciliation instructions have held their individual markups, the House Budget Committee will assemble and ready the bill for consideration. Speaker Mike Johnson (R-La.) has indicated that he intends to have the House Rules Committee consider the bill next week, with the hopes of being able to then call a vote on the House floor before the Memorial Day recess. Many Republican holdouts remain, making the bill’s path forward toward passage uncertain.
Click Here for text of the committee’s bill.
Click Here to watch part one of the markup. Click Here to watch part two.
White House Announces China Trade Deal
Last weekend, talks regarding a potential United States-China trade agreement began to surface. On Monday, the White House announced a potential trade deal with China that would significantly reduce the current tariffs on trade for 90 days while negotiations between the two countries continues. With this, the U.S. plans to reduce its reciprocal tariffs on China from 145 percent to 30 percent, while China is cutting its tariffs on U.S. imports from 125 percent to 10 percent. The temporary de-escalation of these tariffs aims to further negotiations toward a more comprehensive trade deal between the United States and China.
USDA Intends to Rehire Staff
Last week, during a Senate Agriculture Appropriations hearing, Secretary of Agriculture Brooke Rollins stated that the U.S. Department of Agriculture plans to rehire personnel from the Farm Service Agency, Animal and Plant Health Inspection Service and wildfire response offices.
Rollins’ statement was made to the subcommittee after it was made public that 15,000 USDA employees accepted a deferred resignation offer. While FSA lost about 36 percent of its staff – about 1,123 employees through the buyout program – Rollins affirmed in the hearing that she does not plan to close any of the current office locations.
Also, during the hearing, Senate Democrats raised concerns about staff cuts to the Agricultural Research Service, which lost about 20 percent of its staff. Additionally, Rollins made further commitments regarding the $20 billion in weather-related disaster funding, stating that the application process would be open by the end of May.
Judge Orders USDA to Pause Restructuring
Last Friday, U.S. District Judge Susan Illston of the Northern District of California ordered the U.S. Department of Agriculture and 20 other federal agencies to pause their rapid efforts to downsize their workforces based on potentially unlawful orders.
Illston argued that the Trump Administration illegally used executive orders to reform the federal workforce without Congressional approval. She ruled that Congress must be consulted before making layoffs through legal and procedural requirements. The hiring pause will last until May 23, giving President Donald Trump time to consult Congress before releasing additional employees. Additionally, Illston has told federal agencies not to approve any orders from the Department of Government Efficiency to make new workforce reductions.
Click Here for the judges’ full ruling.