Wednesday March 11 Ag News

Ag Land Valuation Bill Fails to Advance
Steve Nelson, President, NE Farm Bureau

“Words cannot describe our extreme disappoint in the Revenue Committee’s decision to not advance legislation to lower the value of agricultural land for tax purposes.”

"The statewide total property taxes levied on agricultural land have increased more than 160% over the last ten years, a rate three times more than the state’s commercial and residential sectors.”

“We have said on many occasions that lowering the value of agricultural land for tax purposes is necessary to reform a property tax system that is out of balance and wrongly puts the bulk majority of funding for local schools and services on the shoulders of a few.”

“The personal property tax measure advanced by the Committee alone does not move us in a meaningful direction to address the inequity in the property tax system for agriculture landowners, which is why legislation to lower the value of agricultural land from 75 percent to 65 percent is needed.”

“Nebraska farm and ranch families shouldn’t be punished through our tax system because land, the most important asset in raising food, can’t simply be picked up and moved to another state like assets for other businesses, yet that is exactly what is happening under our current property tax structure and why the agriculture land valuation bill is so important.”

“We greatly appreciate Sen. Lydia Brasch and Sen. Jim Scheer for lending their support for the agriculture land valuation bill in the Revenue Committee. We will continue to work with members of the legislature and the Governor to find meaningful property tax relief for Nebraska’s farm and ranch families.”



Ricketts: “Nebraska’s Farmers and Ranchers Need Property Tax Relief Now”

Today, Governor Ricketts reacted to the Revenue Committee’s decision not to advance a key property tax relief measure:

“I look forward to continuing to work with Chairman Gloor and the Revenue Committee as they consider options available to the Unicameral to provide Nebraskans with property tax relief. Nebraska’s farmers and ranchers need and deserve meaningful property tax relief because taxes on agricultural land have dramatically increased in recent years. This morning’s decision by the Revenue Committee not to advance legislation to reduce ag land valuation from 75 percent to 65 percent for taxation purposes is disappointing because this measure is a key component of providing meaningful property tax relief this year. I urge the Revenue Committee to reconsider and move this proposal forward.”



 Nebraska Cattlemen Encourages Tax Relief Measures Moving Forward

Nebraska Cattlemen (NC) President Dave McCracken issued the following statement today regarding tax relief for agriculture producers:

“Nebraska Cattlemen is disappointed tax relief measures have not been made priority for members of the Nebraska Legislature’s Revenue Committee thus far,” said McCracken. “Moving into the second half of this year’s session, we hope members of the body will take a hard look at the importance of providing real and impactful tax relief for our state’s economic drivers – agriculture producers.”



Students Awarded Pork Industry Scholarships

The National Pork Producers Council Friday at its annual business meeting – the National Pork Industry Forum – held in San Antonio, Texas, awarded scholarships to five college students who intend to pursue careers in the pork industry. NPPC administers the scholarship selection process; the CME Group sponsors the scholarships, which first were awarded in 1990 to celebrate 25 years of CME hog futures markets.

The 2015 winners of the $2,500 Lois Britt Memorial Pork Industry Scholarships – named after the late NPPC vice president from Mt. Olive, N.C. – are:
·       Breanna Branderhorst, Prairie City, Iowa, junior at Iowa State University.
·       Caleb Grohmann, Red Bud, Ill., freshman at the University of Missouri-Columbia.
·       Taylor Homann, Pipestone, Minn., freshman at the University of Minnesota-Twin Cities.
·       Adam Krause, Clear Lake, S.D., junior at South Dakota State University.
·       Logan Peters, Pender, Neb., junior at the University of Nebraska-Lincoln.

This is the 25th year of the CME Group scholarship program, which recognizes outstanding youth in the pork community. To be eligible, students must be undergraduates in a two-year swine program or a four-year college of agriculture, provide a brief letter describing their expected role in the pork industry, write an essay on an issue affecting the pork industry and submit two letters of reference from professors or industry professionals.

“These outstanding young people represent the future of the U.S. pork industry,” said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. “They are the next generation of leaders, and NPPC and the CME Group are pleased to recognize their commitment to the pork industry with these scholarships.”

“Over the past 25 years, this scholarship program has enable us to invest in the next generation of our nation’s food producers,” said Tim Andriesen, CME Group’s managing director of agricultural commodities. “NPPC is a critical partner in advancing risk management education to future pork industry leaders.”



Farmers, Iowa Soybean Association implement Raccoon River water quality projects

Tuesday’s decision by the Des Moines Water Works Board of Trustees to sue the boards of supervisors in Sac, Buena Vista and Calhoun counties for allegedly allowing nitrates from 10 drainage districts they oversee to pollute the Raccoon River, a primary source water for the utility, won’t deter environmental efforts in the region.

               Roger Wolf, ISA’s Environmental Programs and Services (EPS) director, says the organization’s commitment to environmental and agronomic performance is steadfast and will be for decades to come.

                Des Moines Water Works CEO Bill Stowe has repeatedly said the lawsuit is necessary to protect the utility’s 500,000 customers because farmers and the state won’t take necessary steps to improve water quality, and voluntary conservation efforts are a failure.

That’s simply not the case, Wolf says. The ISA has invested more than $40 million — a combination of Soybean Checkoff, public and private funds — since 2001 in EPS and On-Farm Network® programs to help farmers be more productive and profitable in a sustainable way. A big emphasis is nutrient retention, which effects water quality.

                “We’re owning these issues,” Wolf said. “ISA Board members, through strategic investments, have made water quality and soil health a priority. It’s a responsibility to the community we take seriously.”

                The ISA is one of more than 30 partners in three watershed demonstration projects — two are in counties involved in the lawsuit — recently announced by the Iowa Department of Agriculture and Land Stewardship. They include:

·         The Elk Run Watershed Water Quality Initiative (WQI) Project — Sac, Carroll and Calhoun counties

·         Headwaters North Raccoon River — Buena Vista and Pocahontas counties

·         Leading a New Collaborative Approach to Improving Water Quality in the Squaw Creek Watershed — Story, Boone and Hamilton counties

The demonstration watershed projects cover nearly 275,000 acres, and join 13 other WQI initiatives statewide. The projects will implement and demonstrate the effectiveness and adaptability of a host of conservation practices including cover crops, nutrient management, wetlands, terraces, bioreactors, buffer strips, no-till, strip-till and nitrogen inhibitors, among other in-field and edge-of-field practices.

The Iowa Water Quality Initiative will provide $1.4 million to the three new projects, coupled with matching funds, during the next three years.

ISA member and Calhoun County Soil and Water Conservation District Commissioner Brent Johnson encourages farmers to participate in the projects. He farms 900 acres and operates a crop consulting business near Manson.

“We definitely need to be engaged in the process,” Johnson said. “Farmers are always looking for ways to be more sustainable.”

ISA is involved in most of the watershed projects statewide. The EPS and On-Farm Network teams provide a variety of services from conservation planning, implementation and water monitoring to data collection, interpretation and replicated strip trials.



Disinfectant Expands Options to Fight PEDV

Pork producers have another tool in their battle against Porcine Epidemic Diarrhea Virus (PEDV) - accelerated hydrogen peroxide® (AHP®) disinfectant, sold under the brand name Accel®. This comes from a recent study funded by Pork Checkoff and conducted at Iowa State University that found the disinfectant inactivates PEDV even in the presence of feces found in swine trailers.

According to Lisa Becton, DVM, Pork Checkoff’s director of swine health information and research, a real key to the study was the fact that it mimicked harsh, real-life conditions. The take-home message from the study is that when washing, disinfecting and drying a trailer is not possible, there is an alternative. An AHP disinfectant at a minimum 1:32 concentration, in a 10 percent propylene glycol solution, with 40 minutes of contact time is an effective option to reduce the risk of PEDV transmission between pig groups.

“The gold standard to defend against PEDV is still to thoroughly wash, disinfect and dry livestock transport vehicles,” Becton said, “but the more we know, the wider range of options producers have for effective control.” To read more click here... http://www.pork.org/disinfectant-expands-options-fight-pedv/?utm_source=PEDV_Update&utm_medium=email&utm_content=disinfectant_study&utm_campaign=Vol_3_No_1. 



Iowa Learning Farms March Webinar Focuses on Manure and Water Quality

The monthly Iowa Learning Farms webinar will be Wednesday, March 18, at 1 p.m. This month’s guest speaker is Dan Andersen, assistant professor and extension specialist with Iowa State University in the Department of Agricultural and Biosystems Engineering.

Andersen will present on topics related to animal manure, including why animal manure and human waste are managed differently, the value in utilizing manure in a crop production system, and tips and thoughts on how to get the most value from manure resources and protect water quality.

Andersen has been with Iowa State since 2012 and has worked with beef, swine and dairy clients on their manure management needs. He also has researched manure handling and treatment systems. Andersen has an extensive background in manure utilization, and his love for animal agriculture and the environment stems from growing up on a small dairy farm in central Wisconsin.

The ILF webinars are held on the third Wednesday of each month at 1 p.m. They are free and all that is needed to participate is a computer with Internet access. To participate, go to https://connect.extension.iastate.edu/ilf/ at 1 p.m. on the day of the webinar and log in through the guest option. Webinar participants will be able to converse with Andersen by typing their questions through the chat function. The webinar will be recorded and archived on the ILF website for viewing at any time. All past webinars are archived on the ILF website, http://www.extension.iastate.edu/ilf/Webinars/.

Since January 2011, ILF has hosted a webinar every month. There are more than 45 webinars to view on a wide range of topics including soil erosion, cover crops, buffers, bioreactors and farmer perspectives. The webinar archives also are available in podcast through iTunes.



Challenges Remain at West Coast Ports Despite Labor Agreement

Shippers, carriers, longshoremen, businesses and consumers alike can breathe a sigh of relief in light of the tentative deal the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) reached on February 20. For the past nine months, labor disputes between the PMA, which represents waterfront employers (e.g. carriers that provide deep sea cargo transportation services), and the ILWU, which represents dockworkers, contributed to delays at 29 West Coast ports. These delays stemmed mainly from the ILWU’s slowdown tactics, although the PMA’s suspension of vessel operations for four days in February also contributed. The tentative five-year deal reached late last month should help restore shippers’ confidence in the West Coast ports, which handle about 42.0% of the nation’s containerized freight and cargo valued at 12.5% of GDP, according to the National Retail Federation.

However, delays and uncertainty will continue to plague the ports in the short term and when the current deal expires. Port officials say that they will not clear their container backlog for 45 to 60 days. Because the ILWU and PMA do not typically return to full productivity and manning levels in the immediate aftermath of a contract resolution, this projection likely underestimates the backlog; the Port of Los Angeles reports a lengthier three-month period until their backlog is cleared. As such, goods will continue to sit on docks or ships for prolonged periods. Shippers with time-sensitive cargo, including perishable items, will incur the highest costs from persistent holdups. Additionally, the fact that West Coast port operations are consistently disrupted for months during years when labor agreements are negotiated (e.g. 2002, 2008 and 2014) tarnishes the ports’ reputations. As such, in another five years, businesses reliant on West Coast ports can expect more congestion surcharges from the ocean carriers and trucking companies (i.e. providers of national trucking services and local freight trucking services) that handle their containers, as well as major delays and inventory shortages.

The latest PMA-ILWU dispute has driven home the importance of planning contingency routes, which many shippers are continuing to do until the congestion on the West Coast eases. Retailers and providers of freight forwarding services have shifted some of their cargo volume to ports on the East Coast, which are near major population centers and headquarters for many large retailers that dominate US container imports. Additionally, growing ports such as Charleston and Savannah experience little to no labor disruption. Shippers are also diverting their goods through Gulf Coast, Canadian and Mexican ports to avoid West Coast delays, and many have turned to air cargo transportation services as an alternative to ocean carriers for shipping high-value goods to and from Asia. Still, when West Coast ports are functioning at normal productivity and without crippling backlogs, they are regarded as the most cost-effective way to market for about 70.0% of US imports from Asia. The competitive advantage these ports can offer in terms of location and infrastructure makes the tentative agreement reached last month a positive step.



U.S. Tractor & Combine Sales Fell in February

According to the Association of Equipment Manufacturer's monthly "Flash Report," the sale of all tractors in the U.S. for February 2015, were down 1% from last year.  For the month of Feb., two-wheel drive smaller tractors (under 40 HP) were down .1% from last year, while 40 & under 100 HP were down 10%. Sales of 2-wheel drive 100+ HP were down 19%, while 4-wheel drive tractors were down 38%.  For the month in 2015, a total of 9,632 tractors were sold which compares to 10,524 sold thru February 2014 representing a 9% decrease year to date. Combine sales were down 21% for the month.

For the first two months of 2105, two-wheel drive smaller tractors (under 40 HP) are up 8% over last year, while 40 & under 100 HP are up 2%. Sales of 2-wheel drive 100+ HP are down 11%, while 4-wheel drive tractors are down 53%.  Sales of combines for the first two months totaled 672, a decrease of 37% over the same period in 2014.



EIA: Ethanol Stocks Fall to 4-Week Low

Ethanol supplies in the United States declined for the second straight week despite an increase in domestic production, according to data released by the Energy Information Administration on Wednesday, March 11.

Total ethanol stockpiles fell about 400,000 barrels (bbl), or 1.6%, to a four-week low of 21.2 million bbl during the week-ended March 6. Compared to a year ago, total supplies were up 5.3 million bbl, or 33%.

Plant production rebounded last week, increasing 13,000 barrels per day (bpd), or 1.5%, to 944,000 bpd while up 8.6% year-over-year. The four-week average output rate was up 6.0% against year prior.

Blender inputs, a proxy for ethanol demand, edged down 6,000 bpd to 840,000 bpd last week while down 1,000 bpd year-over-year. During the four weeks ended March 6, blender inputs averaged 846,000 bpd, up 1.7% from the comparable period in 2014.

EIA reported implied demand for motor gasoline decreased 115,000 bpd to an 8.515 million bpd four-week low.



Advanced biofuel group breaks with traditional allies on federal mandates
The makers of advanced biofuels created with algae, animal fat and non-edible plant materials on Wednesday broke with traditional corn-based ethanol producers to call for sweeping changes to the nation’s biofuels mandates.

The appeal, delivered by Advanced Biofuels Association President Michael McAdams in a speech Wednesday, marks a major shift in the strategy for the diverse industry supporters of the 10-year-old renewable fuel standard, who have long stuck together in lobbying Congress to maintain the mandates.

Together, they have successfully beaten back stiff opposition from the oil industry and its leading trade group, the American Petroleum Institute, which have argued that the renewable fuels requirement is fundamentally broken and should be scrapped altogether.

But with his remarks Wednesday, McAdams signaled that the advanced biofuel sector believes its best hope for preserving a federal mandate for its innovative new renewable fuels comes by distancing itself from the first-generation ethanol that currently fulfills most of the mandate.

While the RFS “may be working for some” it “is not equally helpful to all sectors of the biofuels industry,” McAdams said. “The current RFS simply doesn’t work as well for companies trying to move cutting-edge technology from a demonstration plant to commercial scale.”

Although the American Petroleum Institute previously maintained a repeal-only approach to the RFS, some refiners have quietly signaled they could back more modest reforms to the mandates that would preserve a path for cellulosic and other advanced biofuels, while scaling back or completely undoing the requirement for traditional renewable fuels that are typically made from corn.

Under the Advanced Biofuels Association’s proposal:
    The RFS compliance credits for cellulosic fuels would have a minimum value sufficient to provide “certainty and stability” for advanced biofuel producers “to build facilities and commercialize their innovative products.” Those cellulosic complicance credits also should be indexed to the price of oil, insulating the sector from drops in crude prices.

    Congress would extend the program for advanced and cellulosic fuels beyond 2022.

    Refiners would be discouraged from using waiver credits to satisfy cellulosic and advanced biofuel requirements.



Statement by Tom Buis, CEO of Growth Energy in Response to the Advanced Biofuels Association Proposal to Reform the RFS:

“By opening up the RFS for legislative changes, you are opening a can of worms that will only create further uncertainty for the industry, which is the last thing biofuel producers of any kind need. This is a shortsighted proposal that would set the entire renewable fuels industry on the path to a rollback of the RFS. By opening up the Clean Air Act, the end results could be far more disastrous for renewable fuel companies given the oil companies' resistance to complying with the RFS.

“The simple fact is that first generation fuels, such as corn based ethanol, and cellulosic ethanol are inextricably linked and this proposal completely ignores that competitive commercialization in the future is likely to remain tied to the grain ethanol industry to capture the economic synergies of supply chains, co-production and marketing.”