Thursday June 25 Ag News

President Declares Nebraska Disaster, Delegation Calls For Immediate Action

This afternoon, President Obama declared a major disaster exists in Nebraska, following calls from the Nebraska delegation for an immediate response. On June 15, U.S. Senators Deb Fischer (R-Neb.) and Ben Sasse (R-Neb.), joined Representatives Jeff Fortenberry (R-Neb.), Adrian Smith (R-Neb.), and Brad Ashford (D-Neb.) in a letter to President Obama urging prompt approval of a request for a federal disaster declaration.

In May, severe storms caused immeasurable damage across Nebraska and impacted the counties of Cass, Dundy, Gage, Jefferson, Lincoln, Lancaster, Morrill, Nuckolls, Otoe, Saline, Saunders, and Thayer. Lieutenant Governor Mike Foley, on Governor Pete Ricketts’ behalf, delivered a formal request for a major disaster declaration once the full impact of this destruction was analyzed. The delegation’s letter in support of this request highlighted the damage caused by these severe storms, which the Nebraska Emergency Management Agency has estimated will cost nearly $13.8 million.  

Below is the announcement from the White House on the Nebraska Disaster Declaration:

President Obama Signs Nebraska Disaster Declaration
The President today declared a major disaster exists in the State of Nebraska and ordered federal aid to supplement state, tribal, and local recovery efforts in the area affected by severe storms, tornadoes, straight-line winds, and flooding during the period of May 6 to June 17, 2015.

Federal funding is available to state, tribal, and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storms, tornadoes, straight-line winds, and flooding in the counties of Cass, Dundy, Gage, Jefferson, Lancaster, Lincoln, Morrill, Nuckolls, Otoe, Saline, Saunders, and Thayer.

Federal funding is also available on a cost-sharing basis for hazard mitigation measures statewide.

W. Craig Fugate, Administrator, Federal Emergency Management Agency (FEMA), Department of Homeland Security, named Christian M. Van Alstyne as the Federal Coordinating Officer for federal recovery operations in the affected area.

FEMA said additional designations may be made at a later date if requested by the state and warranted by the results of further damage assessments.



NOAA'S NEW DROUGHT CENTER TO EXPAND UNL'S DROUGHT EXPERTISE

A federal official this week announced plans for the establishment of a new Drought Risk Management Research Center at the University of Nebraska-Lincoln.

The new center will help state and local government be better prepared to respond to drought, said retired Coast Guard Vice Admiral Manson Brown, who is assistant secretary of commerce for environmental observation and prediction and the deputy administrator of the National Oceanic and Atmospheric Administration, or NOAA.

Brown made the announcement Wednesday at the annual meeting of the Western Governors’ Association in Nevada, where coping with the ongoing multi-year drought in western states topped the agenda.

"The Drought Risk Management Research Center will fill a vital role in providing states, communities and businesses with the best available drought research, data and information," Brown said. "This critical environmental intelligence will strengthen their ability to stay resilient to drought and leverage the collaborative work of NOAA and other federal and state partners."

Gov. Pete Ricketts said the announcement is good news for the state and for agriculture.

“The Drought Risk Management Research Center is an exciting new partnership for the University of Nebraska that has great potential to benefit our whole state,” he said. “Agriculture, our state’s No. 1 industry, feels the biggest impact of droughts, and benefits greatly from cutting-edge mitigation techniques and long-term planning for these events. The DRMRC will be an asset to our state and can help move agriculture forward to grow Nebraska.”

The DRMRC will be established at the National Drought Mitigation Center at UNL. It builds upon the UNL center's 20 years of working with decision-makers to implement drought monitoring and planning. It also will enhance the capabilities of the National Integrated Drought Information System to work directly with states to plan for drought. NIDIS, which integrates federal drought monitoring and preparedness resources from many agencies, is led by NOAA.

NOAA’s Sectoral Applications Research Program will support the new center with a three-year, $2.4 million grant. The center will launch this summer.

“This will solidify a long-standing relationship between NOAA, the National Integrated Drought Information System and the NDMC," said Michael J. Hayes, director of the National Drought Mitigation Center at UNL. "The emphasis on research will help us address critical needs related to drought monitoring, impact assessment and planning strategies. One of our goals will be to help states and other entities learn from each other based upon what they have experienced, such as what is happening across the West right now, and become more resilient to droughts in the future.”

The new center will conduct applied research on drought risk management by:

> helping lead the coordination of the U.S. Drought Monitor and supporting products and tools;

> working across all scales of drought preparedness and impacts, including local, state, regional, tribal, national, and international, and key socioeconomic sectors;

>enhancing regional drought early warning systems and performing drought event assessments;

>advancing innovations in planning for drought, including incorporating drought into multi-hazard mitigation planning, and

>helping to communicate and coordinate across the NIDIS partner network.

The DRMRC will work closely with NOAA’s Regional Integrated Sciences and Assessments, the Regional Climate Centers, and other federal, tribal, state and regional efforts. The National Center for Atmospheric Research in Colorado will also be a partner. 



Farmers Travel to Talk Quality with Japanese, Korean Customers

A group of farmers from three corn states traveled to Japan and Korea last week to meet with customers and share crop progress updates direct from the farm, interactions that are critical to ongoing sales in those mature corn markets.

The team included Bruce Rohwer and Jim Greif from Iowa; Keith Truckor from Ohio; Kyle Kirby from Missouri; and Jack Irvin, director of government and industry affairs at the Ohio Corn and Wheat Growers Association. They were accompanied by Melissa Kessler, U.S. Grains Council’s (USGC’s) communications director based in Washington, and USGC staff from Tokyo and Seoul.

The in-person visits allowed farmers a unique opportunity to thank customers while also addressing questions about their production practices, the apparent progress of this year’s crop, ethanol, biotechnology and more.

Crop quality, particularly broken corn and foreign material (BCFM) measurements, was top of mind for customers in both countries. Several meetings included the exchange of specific data on crop quality concerns that USGC’s offices and staff can use to enhance ongoing efforts to assess and improve corn quality.

“In just a few days’ time, we learned a lot about what our customers are experiencing when they buy corn from the United States,” said Kirby, who farms in southwest Missouri. “This is important information for us as farmers, and we saw it with our own eyes. Even when the picture wasn’t pretty, it was good to be able to talk directly and know what we need to look at to keep these critical markets functioning.”

In Japan, the group met in Tokyo with JA Zen Noh, a major grain handler and exporter. Zen Noh and partner organizations also arranged meetings in the rural north of the country, where the farmer team was able to visit a cattle operation, a major mill and a port that serves as one of a handful of strategic bulk ports for the nation.

While in Tokyo, the team was hosted by several representatives of major feed companies at the Japanese Feed Manufacturers Association’s offices, and the farmers spoke to nearly 140 people from the trade, feed industry organizations and the media at a corn progress conference put on by USGC’s Japan office.

From Japan, Kirby, Greif and Irvin continued on to Korea, where they met with two feed miller organizations and visited the Incheon Port. They also spoke to more than 100 attendees at the USGC Korea office’s annual corn progress conference, a turnout notable especially because of the country’s concerns with Middle East Respiratory Syndrome (MERS).

While quality was the hottest topic of discussion, each meeting and conference also went in-depth on production practices and crop progress. Customers in both markets were excited to hear up-to-the-minute information on moisture, crop growth and production estimates directly from producers who could explain the technology they use on their farms.

“It’s exciting to be able to show those who are going to be using our corn how it is growing as its growing,” said Greif, who often featured a webcam feed of one of his fields that is broadcasting at www.corncamiowa.com. “They want to know the details of our crop, and we are happy to be able to have those conversations that put a face with a name and solidify our relationship going forward.”

The producers’ mission was made possible by direct state support for those traveling, which the Council relies on to supplement funding from U.S. Department of Agriculture's (USDA’s) Foreign Agricultural Service (FAS).



Ricketts, Ethanol Advocates Urge EPA to Maintain RFS

Today, Governor Pete Ricketts and Nebraska ethanol industry leaders commented on the Environmental Protection Agency’s (EPA) proposed change that would slash billions of gallons of ethanol from the Renewable Fuels Standard (RFS).

The proposed changes are scheduled for a hearing today in Kansas City, Kansas. Nebraska Energy Office Director David Bracht will testify on behalf of the State of Nebraska in opposition to the EPA’s proposed changes to the RFS.

“Corn ethanol adds jobs and economic growth, strengthens Nebraska’s corn markets, and creates a valuable co-product that enhances our cattle feeding sector," said Governor Pete Ricketts. “The EPA’s lack of commitment to the RFS is already driving potential investment away from our state. On a trade mission earlier this month, the CEO of a major biofuels company told me that his business previously had interest in expanding in the United States, but that the EPA’s recent proposal to reduce the RFS is a hurdle to future expansion plans.”

“When the RFS was established in 2005, Nebraska’s corn and biofuels sectors set themselves on a course of action,” said Nebraska Energy Office Director David Bracht. “They recognized the value this policy had in diversification of the U.S. domestic fuel supply, while providing economic benefits for healthy, sustainable rural communities. Our state has joined others in the Midwest and proved our ability to create a supply chain that has, and can, fulfill a consistently growing demand for ethanol. We’ve done it, and we can continue to do it, if given the chance.”

"Our corn farmers and ethanol processors have shown that through innovation and efficiency, they can continue to advance this home-grown fuel," Nebraska Department of Agriculture Director Greg Ibach said. "EPA's proposal fails to recognize this fact and surely will stifle future investment and activity in this sector. In addition, it depresses a value-added market for our corn, hurting farmers and our rural economies."

“Nebraska’s second-in-the-nation ranking for ethanol production means that it plays an important role in our state’s economy,” said Paul Kenney, Chair of the Nebraska Ethanol Board. “The EPA’s proposal to dramatically reduce the amount of corn ethanol in the RFS would not only harm Nebraska’s 24 ethanol plants, but it would also be devastating to our state’s farmers who produce the feedstock for the plants and the cattle feeders who rely on the high-quality feed ethanol plants to provide for their cattle.”

“All the work and investment that Nebraska corn and livestock farmers have put into building the ethanol industry is at risk. We've already seen corn prices drift at or below the cost of production and cutting the use of corn for ethanol could drive prices even lower,” said Tim Scheer, a farmer from St. Paul, Nebraska, and Chairman of the Nebraska Corn Board. “This decision could also idle capacity and restrict access to the distillers grain market for the livestock sector.”

“Ethanol is a critical element for Nebraskans and Americans who wish to build a diverse energy portfolio and a cleaner future,” said Chief Executive Officer Todd Becker of Green Plains, the largest ethanol producer in Nebraska and the fourth largest producer in the country. “Ethanol companies have over $5 billion in capital invested just in Nebraska alone, and these investments have helped to create over 3,000 jobs in the state.  By adhering to the Renewable Volume Obligations (RVO) in the RFS as they were established by Congress, the policy can continue to drive investment in the private sector as it was intended.”



Nebraska Farm Bureau Tells EPA RFS Changes Will Hurt Nebraskans

Nebraskans would be among the millions of Americans harmed by an EPA proposal to make changes to the federal Renewable Fuels Standard (RFS), according to Nebraska Farm Bureau President Steve Nelson. Nelson’s comments were made during a national public hearing hosted by EPA in Kansas City, KS, June 25. The RFS establishes the amount of ethanol required to be blended into the nation’s fuel supply. In May, EPA proposed modifications to reduce blending requirements below levels established by Congress.

“Ethanol is a Nebraska produced renewable fuel source that’s helped reduce our dependency on foreign oil, lowered fuel costs for consumers and provided significant environmental benefits. It’s also one side of Nebraska’s corn, cattle, ethanol triangle that has bolstered Nebraska’s rural economy and lifted Nebraska’s economy as a whole,” said Nelson.

In failing to meet the blending requirements for ethanol as outlined by Congress, Nelson said EPA is jeopardizing a key segment of Nebraska agriculture.

“Nebraska is the third-largest producer of corn in the country and ranks second in ethanol production and distillers grains (a livestock feed ingredient produced by ethanol plants). Nebraska also ranks first in the number of cattle on feed and second in cow-calf production. The synergy that exists in adding value to corn by turning it into a fuel source that also provides an added feed source for our strong livestock sector can’t be understated,” said Nelson.

According to Nelson, EPA’s RFS proposal is clearly a step in the wrong direction as it relates to American energy policy, and more importantly for Nebraskans.

“Nebraska’s ethanol industry is worth an estimated $5 billion per year to Nebraska’s economy and has helped create 3,000 Nebraska jobs. As an industry that started as a single plant in 1985 and has grown to 24 plants statewide today, it’s vital EPA recognize the benefits of ethanol to farmers, consumers and the environment. Meeting the RFS targets established by Congress is a place to start,” said Nelson.

In addition to testifying at the June 25 field hearing, Nebraska Farm Bureau will file public comments with EPA on the proposal. The agency is accepting public comments on the proposal through July 27.



NeFU Testifies at EPA RFS Hearing in Kansas City
Nebraska Farmers Union (NeFU) Vice President Vern Jantzen of Plymouth represented Nebraska Farmers Union at the U.S. Environmental Protection Agency (EPA) hearing on their proposed ethanol production targets for 2014, 2015 and 2015.

Jantzen’s testimony took EPA to task for their failure to get the production targets finalized in advance of the production years, and also for the target levels themselves.  In his testimony, Jantzen said:   

“Timing:  EPA is inexcusably late with their decision.  EPA was under obligation to set the production targets, and propose and finalize the rules well before the 2014 production year began to give the ethanol industry the certainty it needs to prepare for the next year.  The 2014 production year has already come and gone.  The 2015 rules will not be finalized until the year is mostly over.  It remains to be seen if the proposed rule is finalized before the 2016 production year begins.  In our view, EPA’s failure to set production targets in advance of production years is inexcusable, and damaging to the ethanol industry by virtue of the uncertainty it creates.”

“Production levels:  EPA flat out blew the setting of targets.  We believe the proposed targets are not consistent with the intent of Congress.  In our view, EPA bought a bogus blend wall problem argument from the oil industry.  The oil industry is the source of any real or imagined blend wall problem by virtue of the fact they have failed to make higher retail ethanol blend options available to the consuming public.  They have denied fuel consumers the ability to purchase E85, E30, and E15 blends, and then claim there is a blend wall problem.  EPA’s proposed production targets rewards the oil industry for dragging their feet on the retailing of higher grade ethanol blends.”

“Summary:  EPA’s proposed ethanol production targets are not consistent with the Administration’s efforts to reduce the carbon emissions that drive global warming, not consistent with the intent of Congress, not consistent with our nation’s efforts to improve air quality, and not consistent with the needs of production agriculture and rural America that is facing a dramatic downturn in commodity prices for corn.  EPA’s proposed production targets hurt our ethanol industry, and our nation’s corn producers and the rural communities they live in.  We urge EPA to pull back their proposed rule, and stick with the original legislatively set targets for 2015 and 2016.  Thank you again for the opportunity to testify.” 



Soy Growers Happy with Increased Biodiesel Volumes, But Can Produce More

In an a hearing today on the Renewable Fuels Standard held by the Environmental Protection Agency in Kansas City, Kan., American Soybean Association Kansas Director Bob Henry pointed to the many benefits of renewable biodiesel produced from soybean oil as he called on the agency to maintain its commitment to clean, domestically-produced renewable energy.

“We are proud of the many benefits that biodiesel provides,” said Henry, who grows soybeans and corn in Robinson, Kan. “… including a more diversified energy market, increased domestic energy production, significant reductions in greenhouse gas emissions resulting in improved air quality, new jobs and economic development, particularly in rural America, and, of course, expanding markets for soybean farmers.”

“The biodiesel and soybean industry has always advocated for RFS volumes that are modest and achievable and we have met or exceeded the targets each and every year that the program has been in place,” added Henry. “We have done this without any significant disruption or adverse impacts to consumers. And I would reiterate that we’ve done this while also reducing greenhouse gas emissions and providing jobs.”

Henry pointed out that ASA is “glad” that EPA’s proposed rule increases volumes for biodiesel in the RFS to 1.9 billion gallons in 2017, but noted that the agency has an opportunity to support more aggressive biodiesel levels in the future.

“We see no reason why EPA should not, at a minimum, support biomass-based diesel volumes of at least 2 billion gallons for 2016 and 2.3 billion gallons for 2017,” he said, highlighting that additional soybean oil will be displaced from domestic food markets as a result of the recent FDA determination requiring the elimination of all partially hydrogenated oil. Henry also illustrated that increasing the biomass-based diesel volumes relative to the total Advanced Biofuels volumes will promote the use of biodiesel over imported Brazilian sugar-cane ethanol, and noted that an increase in the biomass-based diesel volumes would account for the likelihood of increased imports of biodiesel from Argentina.



NCGA Leaders Defend RFS at Kansas City EPA Hearing

The top leadership of the National Corn Growers Association was well represented at today’s field hearing regarding the U.S. Environmental Protection Agency’s proposal to reduce the volume of ethanol in the Renewable Fuel Standard.

NCGA President Chip Bowling of Maryland and Chairman Martin Barbre joined scores of farmers and others on-hand in Kansas City, Kan., to speak of the importance of domestic, renewable fuels to the nation. The EPA’s proposal would cut nearly 4 billion gallons of ethanol from the RFS through 2016, representing nearly a billion and a half bushels in lost corn demand.

“We simply cannot afford – and will not tolerate – efforts to cut the demand for corn, and that’s exactly what your proposal will do,” Bowling told the EPA. “We cannot let this stand. We’ve done our part, and our allies in the ethanol industry have done their part. It’s time the EPA sided with those of us supporting a domestic, renewable fuel that’s better for the environment.”

Bowling ended his testimony telling the group that farmers were watching and would continue to speak out.

“We have never before seen so much grassroots interest in a particular issue,” he said. “The many who came here today had to set aside important work back home, with delayed planting or other important field work. They are here because they know what’s at stake.”

In his testimony, Barbre spotlighted the importance of the Renewable Fuel Standard and questioned the EPA’s methodology.

“Until the EPA proposed changes to the renewable volume obligation for 2014, the RFS was doing exactly what it was intended to do  ̶  driving adoption of domestic renewable fuel alternatives to petroleum, supporting jobs across the country, and ensuring the United States remains a global leader in developing new renewable energy sources while decreasing greenhouse gas emissions here at home,” he said. “The EPA's proposal threatens these outcomes. At the same time, we are extremely concerned about the methodology behind the EPA’s decision. The EPA only has the authority to issue a waiver when reviewing the RVOs if either the RFS would cause ‘severe economic harm’ to the economy or the environment, or if there is an inadequate domestic supply.”



ACE’s Jennings and over 100 people representing ACE members tell EPA to hold strong on the RFS

Over 100 representatives from companies or organizations that belong to the American Coalition for Ethanol (ACE) are testifying before officials from the Environmental Protection Agency (EPA) today to maintain strong Renewable Fuel Standard (RFS) blending targets as intended by Congress during a field hearing on the proposed Renewable Volume Obligations (RVOs) for 2014, 2015, and 2016 in Kansas City, Kansas.

Brian Jennings, Executive Vice President of ACE, will testify on the first panel. “…obligated parties may protest today that your proposal ‘breaks the blend wall’ in 2016, but EPA needs to separate the signal from the noise.   The methodology EPA is proposing actually enables oil companies to stockpile more than 2 billion gallons of carryover Renewable Identification Numbers (RINs) by 2016.   So in reality, your proposal continues to limit ethanol blending to E10 even in 2016,” according to Jennings.

ACE members providing testimony will give EPA officials a valuable first-hand perspective from the investors, producers, and average citizens who are innovating with advanced and cellulosic technologies and retailers who are offering consumers access to E15 and flex fuels.

“The farmers and biofuel producers who are trying to help EPA succeed in fulfilling the goals of the RFS are mystified that EPA is siding with oil companies who mock the President’s efforts to reduce greenhouse gas emissions and take EPA to court every time you roll out new renewable fuel blending targets,” Jennings will testify. “EPA cannot take a passive approach with companies whose ultimate goal is to repeal the RFS.  Doing so turns a program designed to promote innovation and clean air into one that chokes innovation and increases pollution.”



 Growth Energy’s Buis to Testify at EPA Field Hearing on 2014—2016 RVOs

Today, during the Environmental Protection Agencies (EPA) field hearing on the 2014—2016 Renewable Fuel Standard (RFS) Renewable Volume Obligation (RVO) proposed rule, Tom Buis, CEO of Growth Energy, testified before the EPA panel to explain the how the RFS has been a American success story and if the proposal were to be implemented as currently proposed, it would eviscerate the promise of the RFS. Buis noted:

“We see the Renewable Fuel Standard (RFS) as a modern American success story that has created jobs, revitalized rural America, injected much-needed competition into the vehicle fuels market, lowered the price at the pump, improved the environment, and made our nation more energy independent.

“However, EPA’s latest RVO proposal to waive the statutory renewable volume obligations would eviscerate the promise of the RFS. It would cause severe harm to farmers, the biofuels industry, and the nation’s economy. This proposal is already creating great uncertainty for farmers and other industry investors.

“The RFS was approved by a bipartisan majority in Congress and enacted into law eight years ago. Since that time, the oil industry has used its considerable power to delay, litigate, and undercut the RFS. Now, by refusing to take any steps to allow higher biofuel blends into the consumer marketplace, the oil industry is claiming the statutory volumes of the RFS cannot be met because of the so-called ‘blend wall.’ The EPA’s proposal to waive the statutory renewable fuel volumes mistakenly accepts this logic. It ignores the potential for E15, E85 and biodiesel. It ignores the large surplus of RINs, which could be used. It ignores increased gasoline demand.  And, most fundamentally, it ignores Congressional intent in creating the RFS program. The statutory volumes can easily be met if the oil industry would simply comply with the original intent of the RFS and allow higher ethanol blends like E15 to be competitively sold to consumers.

“Companies from all over the world have invested billions of dollars in first and second generation biofuels in the U.S. and are poised to do more. Arbitrarily reducing the levels established in the statute threatens investments that are making commercial production of cellulosic ethanol a reality – projects that will help achieve the significant greenhouse gas reduction goals outlined in the RFS. Also threatening greenhouse gas reductions, this proposal would nearly double the demand for imported Brazilian ethanol which has to be shipped thousands of miles by sea – and it isn’t being shipped via sailboat. At the same time, U.S. produced ethanol would then be forced to be exported – often times to Brazil. Literally a case of ships passing in the night.

“Now is the time for EPA to move the RFS forward, not backward. They have the opportunity to use their authority to continue the implementation of a successful policy that has been a win-win for our nation and its citizens. They should not squander this opportunity to placate Big Oil at the expense of the American taxpayer.

“EPA, if you seek to reduce our dependence on foreign oil, create jobs here in the US that cannot be outsourced and strengthen the rural economy, and, if you truly want cleaner air, reduced greenhouse gas emissions, a better environment for our children and lower gas prices for American consumers, tear it down this blend wall!”



USDA:  Record Low Lamb and Mutton Production for May

Commercial red meat production for the United States totaled 3.81 billion pounds in May, down 4 percent from the 3.95 billion pounds produced in May 2014.

Beef production, at 1.92 billion pounds, was 7 percent below the previous year. Cattle slaughter totaled 2.38 million head, down 10 percent from May 2014. The average live weight was up 33 pounds from the previous year, at 1,332 pounds.

Veal production totaled 6.6 million pounds, 16 percent below May a year ago. Calf slaughter totaled 33,200 head, down 29 percent from May 2014. The average live weight was up 50 pounds from last year, at 335 pounds.

Pork production totaled 1.86 billion pounds, up slightly from the previous year. Hog slaughter totaled 8.75 million head, up 1 percent from May 2014. The average live weight was down 3 pounds from the previous year, at 284 pounds.

Lamb and mutton production, at 11.9 million pounds, was down 14 percent from May 2014. Sheep slaughter totaled 168,500 head, 13 percent below last year. The average live weight was 141 pounds, down 2 pounds from May a year ago.

By State      (million lbs.,   -   % of May'14)
Nebraska .......:     586.6                96%      
Iowa ..............:     539.4               101%      
Kansas ...........:     432.0                96%      

Overall, January to May 2015 commercial red meat production was 19.7 billion pounds, up slightly from 2014. Accumulated beef production was down 5 percent from last year, veal was down 22 percent, pork was up 6 percent from last year, and lamb and mutton production was down 5 percent.



New Farm Poll Shows Nutrient Reduction Strategy Is Well Known

According to the latest Iowa Farm and Rural Life Poll, the majority of farmers are aware of and support Iowa’s Nutrient Reduction Strategy, a science and technology-based approach used to assess and reduce nutrients delivered to Iowa waterways, the Mississippi River and the Gulf of Mexico.

J. Gordon Arbuckle, a sociologist with Iowa State University Extension and Outreach, noted that these results are important because awareness of the Nutrient Reduction Strategy is a critical first step toward participation in actions to help meet the strategy’s goals.

“A majority of farmers knew about the strategy, which means that progress is being made. We also found that farmers with more than 500 acres of corn and soybeans were more knowledgeable about the NRS. Since those larger-scale farms represent most of Iowa’s cropland, this indicates that the stewards of that land have already crossed the awareness threshold,” said Arbuckle, who co-directs the annual poll with Paul Lasley, also an ISU Extension and Outreach sociologist.

The NRS addresses both point sources such as municipal wastewater treatment plants and industrial facilities, and nonpoint sources including farm fields and urban stormwater runoff, to address nutrient loss of nitrogen and phosphorus. The science assessment, the foundation of the nonpoint source portion of the strategy, was developed by Iowa State University and the USDA’s Agricultural Research Service and the Natural Resources Conservation Service. There also was support from the Iowa Department of Agriculture and Land Stewardship and Iowa Department of Natural Resources.
Farmer Perspectives

The report, “Farmer Perspectives on Iowa’s Nutrient Reduction Strategy” (PM 3072), draws on data from the 2014 Iowa Farm and Rural Life Poll. The survey, conducted from February through May 2014, focused on farmers’ awareness and knowledge of the nutrient reduction strategy, awareness and concern about nutrient-related water quality issues, attitudes toward the strategy and perceived barriers to action. The results represent an early measure of farmer perspectives on the strategy that was implemented by the state of Iowa in 2013. A total of 2,218 farm operators were surveyed; 51 percent, or 1,128 surveys were returned.  Arbuckle and graduate student Hanna Bates co-authored the report.

“A first objective of the study was to measure farmer knowledge of the NRS,” said Arbuckle. “If farmers don’t know about the strategy, they’re not likely to participate.” The survey showed that most farmers knew about the NRS, and more than half rated themselves as at least “somewhat knowledgeable” about it. Only 20 percent of farmers indicated no knowledge of the strategy prior to reading the survey’s introductory text.

Corn and soybean farmers, for whom the NRS is perhaps most relevant, reported higher levels of knowledge than farmers as a whole. “Because the Iowa Nutrient Reduction Strategy is focused largely on reduction of nitrogen and phosphorus loss from crop fields, farmers who plant corn and soybeans are of particular interest,” said Arbuckle.

Survey results indicated that farmers with more corn or soybean acres show higher knowledge levels: more than two-thirds of farmers who had 500 or more acres said they were at least somewhat knowledgeable, compared to 37 percent of farmers with fewer than 100 acres.
Information Sources

Farmers had heard about the NRS from some sources more than others. “As expected, the farm press had been instrumental in raising awareness of the NRS, especially among larger-scale farmers,” said Hanna Bates, co-author of the study. “Government agencies such as ISU Extension and Outreach, the USDA-NRCS, Soil and Water Conservation Districts, IDALS and commodity or farm organizations were also important information sources.”

The least common information sources were local agricultural retailers, seed company salespeople and independent/private crop advisers. “It’s crucial for private sector advisers to get more involved,” Bates noted. “Iowa State and IDALS and other public sector and non-governmental organizations that are working on the strategy should continue to work closely with their private sector partners to help engage them as messengers.”

Concerns about Water Quality
Most Farm Poll participants expressed concern about agriculture’s impacts on water quality (76 percent), and believed that Iowa farmers should do more to address nutrient loss. Fifty-two percent agreed that nutrients from Iowa farms contribute to hypoxia, an oxygen-depleted water zone in the Gulf of Mexico. Forty percent were uncertain about the impacts of nutrients from Iowa on Gulf Hypoxia.

Survey questions measuring attitudes toward the NRS and related actions showed that Iowa farmers were generally supportive of the strategy and believed that farmers should do more to reduce nutrient and sediment run-off into waterways. Nearly three-quarters agreed that they would like to improve conservation practices on their own farmland to help meet the strategy’s goals.

Arbuckle said respondents indicated openness to receiving help from advisers. “About 60 percent agreed that fertilizer dealers — the group that most farmers look to for nutrient management advice — should do more to help their clients address nutrient loss,” he said. Nearly half expressed willingness to have someone help evaluate the effectiveness of nutrient management practices on their farms.

Potential Barriers
Farmers also were asked to rate their agreement or disagreement with statements about potential barriers to nutrient management-related conservation actions. More than half (56 percent) agreed that landlords often are unwilling to spend money on conservation. Likewise, 55 percent agreed that short-term pressure to make profit margins makes it difficult to invest in conservation practices when benefits are mostly long-term. Only 16 percent agreed the cost of further reduction of nutrient losses from their farm operation would be too high. However, 55 percent selected “uncertain” on this question.

“The survey results showed that farmers know about and support the NRS,” said Arbuckle. “The challenge going forward will be to translate awareness and positive attitudes into more widespread adoption of diverse conservation practices and farming systems that keep nutrients on farms.”

“The Nutrient Reduction Strategy focuses on ways farmers, agricultural stakeholders and cities can take action to reduce nutrient loads by 45 percent,” said John Lawrence, associate dean in the College of Agriculture and Life Sciences and director for Agriculture and Natural Resources Extension and Outreach.

Lawrence said the Iowa strategy was designed to be a dynamic document, evolving as new information, data and science are discovered and adopted. “The strategy summarizes ongoing research from Iowa State on the effectiveness of ‘best management practices’ in reducing nutrient loss from farmland,” he said. Lawrence also serves as director of the Iowa Nutrient Research Center, established in 2013 by the Board of Regents, State of Iowa, and serves on the Iowa Agriculture Water Alliance advisory board.

“Farmer Perspectives on Iowa’s Nutrient Reduction Strategy” (PM 3072) and previous Iowa Farm and Rural Life Poll summary and topical reports are available to download from the ISU Extension and Outreach Online Store, https://store.extension.iastate.edu/, and Extension Sociology, www.soc.iastate.edu/extension/ifrlp/about.html.



Farm, Development Groups Call for Coordinated, Agriculture-Based Effort to Meet Global Food Security Needs

A coalition of farm and international development organizations and agriculture-related foundations sent a letter on June 18 to congressional committees calling for a coordinated approach from the federal government to meeting global food security needs.

In their letter, the groups stated that international agricultural development is essential to meeting the urgent goal of feeding the world’s growing population, expected to rise from 7.2 to 9.1 billion by 2050. Global demand for food will increase by 60 percent during the same period.

“The American Soybean Association has a long history of improving access to food and building markets through the work of the World Initiative for Soy in Human Health. ASA is eager to continue that legacy by being a part of the solution to address global food security issues through agricultural development,” said Wade Cowan, the association’s president and a soybean farmer from Brownfield, Texas. “Training and engaging in technology transfers with people in least-developed countries helps to alleviate hunger and increase economic opportunities for local people, and provides long-term market growth for U.S. agricultural products abroad.”

“AGree commends Congress for its efforts to elevate food and agriculture development as a priority. We believe that the authorizing legislation should institutionalize a whole of government approach that truly acknowledges and leverages the contributions of USDA, research institutions, and the private sector to achieve a hunger free world,” said AGree Executive Director Deborah Atwood.

The letter also emphasized that the Department of Agriculture, the U.S. land grant university system, farm organizations and agribusiness should be leveraged more prominently in international agricultural development efforts, working in coordination with other development and humanitarian programs administered by the U.S. Agency for International Development. The letter was sent to the Senate Committees on Agriculture, Nutrition and Forestry and Foreign Relations, and the House Committees on Agriculture and Foreign Affairs.

“U.S. agriculture has a long legacy of hard work, ingenuity, and service,” said Tricia Beal, CEO of the Farm Journal Foundation. “Farm Journal Foundation is proud to support this effort to ensure that the U.S. global food security strategy continues to prioritize agricultural development, sharing the best our dynamic community has to offer to empower smallholder farmers to lift themselves out of hunger and poverty. This goal is consistent with our industry’s values and its long term interests.”




Senate Passes Bill to Reform Rail Oversight Board

The U.S. Senate late last week approved S. 808, a bill to reauthorize and reform the Surface Transportation Board (STB), which oversees the railroad industry. The bill, sponsored by Sen. John Thune (R-SD) and strongly supported by the American Soybean Association (ASA), would expand the STB and give it new authority to initiate and investigate freight-rail industry issues.

The measure passed the Senate by unanimous consent, but it is unclear if or when the House will act on the bill.  The bipartisan bill would increase the number of board members from three to five, require the agency to report to Congress every three months on regulatory proceedings and promote greater use of voluntary arbitration to more efficiently settle disputes between freight railroads and shippers.

The bill is supported by ASA and other agricultural groups.  While the Association of American Railroads, has opposed similar legislation in previous years it has thus far not mounted strong public opposition to S. 808.



Senate Moves Forward on COOL with Ag Committee Hearing

Today, the Senate Agriculture Committee heard from business and agricultural leaders on the impact of looming retaliatory tariffs from Canada and Mexico should the U.S. remain non-compliant with WTO rules on country of origin labeling (COOL) for muscle cuts of meat.

On May 18, 2015, the World Trade Organization (WTO) issued its fourth and final ruling, finding that the U.S. COOL rule for muscle cuts of beef and pork violates U.S. trade obligations, and allowing America's two largest export markets to establish retaliatory tariffs on more than $3 billion in U.S. exports. Both Mexico and Canada have already started the retaliation process, and unless the Senate acts before its August recess retaliatory tariffs could be implemented by late summer.

"Manufacturers risk losing major exports to our two largest trading partners as a result of this ongoing dispute and we are looking for a solution that will immediately stop the threat of retaliation," said Linda Dempsey with the National Association of Manufacturers and Co-Chair of the COOL Reform Coalition. "We welcome the ongoing discussions to address this issue, but urge that the Senate act quickly and decisively to eliminate the possibility of retaliation."

The United States is out of options. Last year, the COOL Reform Coalition continually urged enactment of a contingency plan by Congress to prevent retaliation. Regrettably, those efforts fell short and the U.S. is now facing retaliation and a serious blow to the economy.

"Trade with these countries-our two largest export markets-supports nearly 14 million U.S. jobs," said John Murphy with the U.S. Chamber of Commerce and Co-Chair of the COOL Reform Coalition. "While we applaud the Senate Agriculture Committee for its leadership on this issue to start the conversation, time remains short. We hope this proves to be the first step towards action by the Senate to bring the U.S. into compliance and avoid retaliation."



 NFU Calls Rhetoric to Repeal COOL in Senate Hearing “Overkill”

National Farmers Union (NFU) President Roger Johnson called rhetoric aimed at repealing Country-of-Origin Labeling (COOL), in today’s Senate hearing “overkill,” and pointed out that viable options remain on the table that would allow the U.S. to keep its popular labeling law while appeasing World Trade Organization (WTO) demands.

“The ceaseless saber rattling by Canada, threatening instant retaliation against the United States, is premature and over-hyped, because Canada has yet to make a credible case for real economic harm from COOL,” said Johnson.

“Looking at the recent report from Dr. Robert Taylor at Auburn University, there is significant evidence indicating that any harm to our trading partners by COOL has been negligible at best and likely attributed to the economic downturn of 2008, and not COOL,” he said.

Johnson point out that many times in the past, WTO members have worked as partners to find a mutual solution that satisfies all parties and demonstrates that good neighbors can indeed work together on complex issues. “Unfortunately, labeling law opponents like the multinational meatpackers and Canadian officials are trying to scare the American public with threats of huge job losses and sudden economic devastation, when in fact they could be working on a fair solution,” he added.

The recent bill to repeal COOL passed in the U.S. House of Representatives went far beyond what the WTO found fault with by repealing chicken, ground beef and ground pork.  “What the Senate needs to remember is that primarily, this is a right to know issue for consumers,” said Johnson. “Meatpackers would rather return to a situation whereby they can deceive consumers into believing they are buying a U.S. product when in fact they may not be,” he said.

“We urge the Senate to not kowtow to Canadian rhetoric and instead find a way to give the American public what it wants, which is to know where its food is from,” he said.



Dakota Properties Merges with Farmers National Company

Farmers National Company has announced that Dakota Properties Real Estate and Wyoming Properties Real Estate (Dakota Properties) and related services, headquartered in Spearfish,  S.D., has merged its real estate sales business with Farmers National Company effective June 1, 2015.

According to president Jim Farrell of the Omaha-based Farmers National Company, Dakota Properties is a “strong, client-focused sales company” with extensive specialized knowledge of farm, ranch, acreage and recreational property real estate in Montana, Nebraska, North Dakota, South Dakota and Wyoming.

Dakota Properties owner Jeff Garrett said the merger allows the company to increase the scope and quality of services that they can offer clients. “As we look to the future, we are confident we can accomplish this job most effectively by joining forces with Farmers National Company, a leading real estate and farm management company,” said Garrett.

Garrett, based in the Spearfish,  S.D.,office, will join  more than 200 Farmers National Company real estate agent offices in 24 states across the Midwest, Mid-South, South and Northwest.

Part of Farmers National Company's long-term strategy has been focused on growth into the upper Midwest and Montana, according to Farrell. "The addition of a well-established regionally-based company like Dakota Properties provides us with a strong market foundation to build from in future years,” he said.



Deere to Call Back Workers at Waterloo Plant

Up to 60 workers on layoff at Deere & Co.'s Waterloo operations will return to work next week. Cedar Valley Business Online reports that two rounds of temporary layoffs since October have trimmed about 1,000 workers from Deere's 6,000-employee workforce.

Callbacks will be determined by seniority, said Tim Niedert, shop chairman with United Auto Workers Local 838 in Waterloo. Many returning workers likely are working at other Deere plants.

Some workers who took spots in Dubuque and Davenport, which manufacture forestry and construction equipment, may choose to stay put. If they don't come back, they'll surrender their spots in Waterloo.

Some workers will return as early as Monday.

Deere workers have dealt with two rounds of layoffs, in October and January. Weak grain markets have spurred a fall in demand for new tractors. All of John Deere's big farm tractors are manufactured in Waterloo.



Monsanto Reports Quarterly Earnings Results

Monsanto Co. reported better-than-expected earnings results for the third quarter on Wednesday as executives of the huge agricultural business continued to make a case for a $45 billion takeover of Swiss competitor, Syngenta AG. St. Louis-based Monsanto reported earnings of $2.39 per share on stronger revenue from crop chemicals, compared with results of $1.62 per share in the prior-year period, reports the Associated Press.

The company reiterated its goal to more than double its 2014 earnings per share by 2019, emphasizing the potential benefits of a combination with Swiss chemical maker Syngenta, which has three times rejected its unsolicited offers.

Meanwhile, Syngenta provided a more detailed explanation this week of its concerns with Monsanto's takeover offer. In a video posted to its website, Chairman Michel Demaré said the offer undervalues the pesticide maker's business, which "they are trying to buy on the cheap." He also reiterated concerns that Monsanto is underestimating the antitrust challenges.