Wednesday March 16 Ag News

Gov. Ricketts, Revenue Committee Agree to Compromise on Tax Reforms

Today, Governor Pete Ricketts announced that he and the Revenue Committee have agreed on a proposed amendment to LB958, which provides property tax relief.  Property tax relief is the Governor’s number one priority this legislative session.

“I appreciate the continued work of Chairman Gloor and the Revenue Committee as they have collaborated with my team on designing a property tax relief plan,” said Governor Ricketts.  “Continued collaboration will be important as we work together to deliver much-needed property tax relief for hard-working Nebraskans.”

The components included in the proposed amendment for LB958 include:
·      A limit on the carryover of unused restricted funds by community colleges to 3%
·      Targeted additional direct property tax relief for ag land property taxpayers

“The Revenue Committee appreciates the dedication of the Governor to providing property tax relief,” said Revenue Chairman Mike Gloor.  “Over the past year, we have heard repeatedly about the importance of property tax relief from Nebraskans everywhere, and I look forward to bringing a bill to the floor for consideration by the entire Legislature.”

The Revenue Committee will hold a new hearing on the proposed amendment to LB958 on March 24, 2016.  The public is invited to testify.  Nebraskans are welcome to submit their testimony to Senator Gloor by emailing kdelka@leg.ne.gov.



Nebraska Farmers Union Sponsors College Students Attendance to College Conference on Cooperatives

10 agricultural students and their professors from 3 different Nebraska Colleges traveled to Minneapolis, Minnesota for the 2016 College Conference on Cooperatives under the guidance of Nebraska Farmers Union.  The participating colleges included Northeast Community College at Norfolk, Southeast Community College at Beatrice, and Nebraska College of Technical Agriculture at Curtis.  The College Conference on Cooperatives brought more than 110 attendees from the multiple states including the midwest and east coast.

The Cooperative Conference participants learned how cooperative businesses are adapting to changing environments and heard from cooperative experts from across the nation on why member-owned businesses are thriving in industries ranging from senior housing to healthcare. They also toured the CHS (Cenex Harvest States) Headquarters, housing coops, food coops, a food hub and the Mill City Flour Museum. “Cooperatives organized by farmers and ranchers play an important role in strengthening rural and urban economies across the country. CCOC engages tomorrow’s leaders through a unique platform that teaches them about cooperative business principles and the opportunities available through the cooperative model,” said NFU President Roger Johnson.

Students heard from cooperative leaders, farmers and government experts who explained current challenges they face. Presenters ranged from members, directors, employees and managers of traditional and value-added agricultural cooperatives to representatives of housing and worker-owned co-ops, as well as consumer cooperatives such as REI outdoor goods and natural foods co-ops. These professionals offered insights on cooperative development here and abroad.

The conference evaluations revealed that most of the students in attendance were from farms or ranches, with a large percentage from small towns, and about 10% were urban. Picard said, “The College Cooperative Conference helps make students aware of options and tools that can be used to create the economic opportunities needed to help our rural youth stay in their communities.   Learning directly with Coops also enhances the future career opportunities for students. We are pleased to partner with these Nebraska colleges to help send Nebraska kids to this Conference.”

The annual College Cooperative Conference is co-sponsored by the CHS Foundation in cooperation with the National Farmers Union Foundation.  Nebraska Farmers Union was awarded a grant from the CHS Foundation to help defray the attendance costs for the Nebraska participants.



Nebraska Ethanol Board Meeting: March 31, 2016

The Nebraska Ethanol Board will meet at 8:30 a.m. Thursday, March 31. The meeting will be held in Lincoln at the Hampton Inn Lincoln Airport (1055 W. Bond St.). Highlights of the agenda include:
-    Marketing Programs Update
-    State and Federal Legislation Update
-    Ethanol Plant Reports

This agenda contains all items to come before the Board except those items of an emergency nature.



CONSERVATION COMPLIANCE REQUIRED FOR USDA FARM PROGRAM BENEFITS AND FEDERAL CROP INSURANCE PREMIUM SUBSIDIES

As springtime approaches, the USDA reminds producers to keep conservation compliance in mind before making any major land use changes on their farming or ranching operations. Being out of compliance could put USDA conservation program benefits and federal crop insurance premium subsidies in jeopardy.

Conservation compliance refers to the USDA requirement that highly erodible land be farmed in a manner that minimizes soil erosion. This may include practicing no-till or planting cover crops.

Conservation compliance also prohibits the conversion of wetlands or planting agricultural commodities on a converted wetland.  Converting a wetland may include removal of trees, installing new drainage, or modifying existing drainage areas.

Craig Derickson, state conservationist with the USDA’s Natural Resources Conservation Service (NRCS) says, “We want producers to visit their local USDA Service Center before making any big land use changes on their farm or ranch. There are requirements producers need to follow to remain eligible for USDA benefits.”

Dan Steinkruger, director of the USDA’s Farm Service Agency (FSA) says, “It is especially important that farmers who are breaking out new land, or conducting other types of land improvement activities, timely file an AD-1026 form with FSA. Once the AD-1026 is filed, the producer’s planned land activities can be evaluated, and highly erodible land and wetland determinations can be made. The producer can then work with NRCS to assist with conservation planning to help ensure compliance with conservation requirements.”

The Agricultural Act of 2014 - commonly called the Farm Bill - continues the requirement that producers adhere to conservation compliance guidelines in order to be eligible for most programs administered by USDA’s Farm Service Agency and the Natural Resources Conservation Service. This includes the new price and revenue protection programs, the Conservation Reserve Program (CRP), the Livestock Disaster Assistance Programs and Marketing Assistance Loans implemented by FSA. It also includes conservation programs like the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP) administered by NRCS.

The 2014 Farm Bill also extended conservation compliance as an eligibility requirement for federal crop insurance premium subsidies, which may account for approximately 60% of a producer’s overall premium cost. When a producer is determined to be in violation of conservation compliance rules, it not only causes ineligibility for USDA program benefits on the farm in violation, but also on all other farms in which that producer has an interest. The result can be a very significant monetary impact on that producer and his or her farming operation.

According to Steinkruger, it’s important for producers to work closely with their local NRCS and FSA offices. Producers should review and understand existing highly erodible land (HEL) and wetland (W) determinations on FSA maps and visit with NRCS regarding what steps are required to ensure that an approved conservation plan is being applied.

With the current market conditions, farm program benefits are an increasingly important part of most producers’ bottom line.  “Now more than ever, it’s critical for conservation compliance to be a strategic part of each producer’s operation to ensure eligibility not only for FSA and NRCS programs, but also for crop insurance premium subsidies,” Steinkruger noted.

Derickson said, “Staff at the USDA Service Center will work one-on-one with producers to ensure any new farming operations will protect natural resources and the sustainability of their farm, and don’t put their USDA farm program benefits at risk.”

For more information, visit your local USDA Service Center. To locate a USDA Service Center visit http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/contact/local/.



Ricketts Announces 2016 Winners of National Ag Week in Nebraska Poster Contest

Today, in celebration of National Ag Week, Governor Pete Ricketts announced the winners of this year’s Nebraska Department of Agriculture (NDA) poster contest.  The contest was open to first through sixth grade students in Nebraska.

“Agriculture is the heart and soul of this state,” said Governor Pete Ricketts.  “The students who participated in the competition know and understand this.  Their posters were created using this year’s contest theme, ‘Agriculture: Growing Nebraska,’ and creatively highlight our state’s number one industry.”

“These students are learning about the important role agriculture has in developing our food supply and how ag impacts our daily lives,” said NDA Director Greg Ibach.  “Teaching consumers about where their food comes from starts with quality conversations at an early age.”

The posters were judged in three separate categories, and the NDA received nearly 1,500 entries in total.

In the 1st and 2nd grade division:
·      Governor’s Choice: Josh Frederick, a second  grader from Falls City North School
·      1st place: Avery Bruha, a first grader from Ord Elementary
·      2nd place: Brock Niedfeldt, a second grader from Falls City North School
·      3rd place: Turner Hoffman, a second grader from Norris Elementary in Firth

In the 3rd and 4th grade division:
·      Governor’s Choice: Jordan Settles, a fourth grader from North Bend Central
·      1st place: Petar Petrovic, a fourth grader from Tara Heights Elementary in Papillion
·      2nd place: Carter H., a fourth grader from Ackerman Elementary in Omaha
·      3rd place: Kooper Koehn, a fourth grader from Dudley Elementary in Gothenburg

In the 5th and 6th grade division:
·      Governor’s Choice: Anne Eckert, a sixth grader from St. Margaret Mary School in Omaha.
·      1st place: Brenda Lazaro Romero,  a fifth grader from Knickrehm Elementary in Grand Island
·      2nd place: Abigail Gamage, a fifth grader from Knickrehm Elementary in Grand Island
·      3rd place: Lilly Fuglsang, a sixth grader from St. Margaret Mary School in Omaha

The winning posters and the names of the schools submitting entries are on the NDA’s website at http://www.nda.nebraska.gov/kids/poster/2016/2016contest.html.



Iowa Corn Growers Association Applauds Iowa Legislature for Passage of Section 179
This week, both the Iowa House and Senate passed a one year, full coupling of Section 179 to the federal provision allowing farmers and small businesses to expense and depreciate capital expenses on their tax returns. The Iowa Corn Growers Association (ICGA) thanks the House and Senate leaders for swiftly bringing this to a vote on the floor, and also appreciates those who voted for the passage of both bills.

“The actions of the House and Senate will allow for Iowa’s farm families to take full advantage of reinvesting in their businesses. In order to successfully run a farm, you must continually update and replace equipment in order to maintain a fully functioning operation,” said ICGA President Bob Hemesath. “With volatile commodity prices and general downturn in the ag economy, this measure keeps Iowa’s rural economy going strong and allows farmers to manage cash flow when we do experience a tighter ag economy.”

Iowa’s farm families rely on these tax provisions to manage their cash flow and reinvest in their businesses. In a year when taxable income will be lower, reliable tax deductions are extremely important. The federal tax relief measure passed both the U.S. House and U.S. Senate as part of the Protecting Americans from Tax Hikes (PATH) Act in late 2015.

Thank you to all of the ag groups, businesses, bankers, accountants, and to the many farmers and ICGA members who made contact with their legislators to make this happen. “This is an example of when we bring together our collective voice, we can positively influence issues affecting Iowa’s ag industry,” stated Hemesath.



Passage of tax coupling

Iowa Secretary of Agriculture Bill Northey issued the following statement commending the Iowa Legislature on passing tax coupling.

“I commend the Iowa House and Senate for reaching this agreement and passing tax coupling.  This is a very important agreement that will benefit Iowa farmers and business owners that had made an investment in their business and as result were facing a significant increase in their state taxes.”



Midwest Dairy Board Leadership Elected 

Jerry Messer, a dairy farmer from Richardton, N.D., will continue to lead Midwest Dairy Association in the coming year. Messer was re-elected chairman of the checkoff organization during the group’s annual meeting in Minneapolis on March 8-9. Allen Merrill, Parker, S.D., and Bill Siebenborn, Trenton, Mo., were re-elected vice chairman and first vice chairman, respectively. Ken Herbranson of Clitherall, Minn., secretary, and Dan Grunhovd of Gary, Minn., treasurer, were also re-elected.

New members elected by their Divisions to the Midwest Dairy Corporate board include:
    Debi Clasemann, Long Prairie, Minn.; and
    Robert Horst, Bristow, Iowa.

Division Board officers and new members are as follows:

Illinois Division
    Chairman – Bill Deutsch, Sycamore;
    Vice Chairman – David Jarden, Staunton;
    Secretary – Ardath DeWall, Shannon; and
    Treasurer – Glen Meier, Ridott.

Iowa Division
    Chairman – Dan Hotvedt, Mabel, Minn.;
    Vice Chairman – Bruce Brockshus, Ocheyedan;
    Secretary – Pam Bolin, Clarksville; and
    Treasurer – Larry Shover, Delhi.
Keith Blake, Eldridge; Doug Carroll, Ryan; and Robert Horst, Bristow, were seated as new members of the Iowa Division Board.

Mo-Kan Division
    Chairman – Byron Lehman, Newton, Kan.;
    Vice Chairman – Steve Strickler, Iola, Kan.;
    Secretary – Donna Telle, Uniontown, Mo.; and
    Treasurer – Curtis Steenbock, Longford, Kan.
Alex Peterson, Trenton, was seated as a new member of the Mo-Kan Division board.

Minnesota Division
    Chairman – Ken Herbranson, Clitherall;
    Vice Chairman – Dan Grunhovd, Gary;
    Secretary -  Suzanne Vold, Glenwood; and
    Treasurer – Ron Rinkel, Hillman.

The Minnesota Dairy Promotion Council, a quasi-governmental group with the same board members, elected the following:
    Chairman – Kathleen Skiba, North Branch;
    Vice Chairman – Barb Liebenstein, Dundas;
    Secretary – Debi Clasemann, Long Prairie;
    Treasurer – Christine Sukalski, LeRoy; and
    Executive member at-large – Peter Ripka, Ogilvie.

Nebraska Division
    Chairman – Lowell Mueller, Hooper;
    Vice Chairman – Joyce Racicky, Mason City; and
    Secretary/Treasurer – Dean Engelman, Jansen.
Mike Guenther, Beemer, was seated as a new member of the Nebraska Division board. Kim Clark, University of Nebraska – Lincoln, was appointed as a new ex-officio member.

North Dakota Division
    Chairman – Jerry Messer, Richardton;
    Vice Chairman – Terry Entzminger, Jamestown;
    Secretary – Rita Mosset, Linton; and
    Treasurer – Lilah Krebs, Gladstone.

Ozarks Division
    Chairman – Nathan Roth, Mountain Grove, Mo.;
    Vice Chairman – Marilyn Calvin, Mt. Vernon, Mo.;
    Secretary – Lloyd Gunter, Conway, Mo.; and
    Treasurer – Alfred Million, Tahlequah, Okla.

South Dakota Division
    Chairman – Jim Neugebauer, Dimock;
    Vice Chairman – Mike Frey, Claremont;
    Secretary – Allen Merrill, Parker; and
    Treasurer – Gary Jarding, Alexandria.

Annalies Seffrood, Summit, was seated as a new member of the South Dakota Division board in November.



NCGA Disappointed with Senate Vote on Roberts Compromise Food Labeling Legislation

National Corn Growers Association President Chip Bowling issued the following statement today in response to the Senate’s failure to pass Chairman Pat Roberts’ uniform, national food labeling standard:

 “U.S. corn farmers are disappointed that, despite the clear demonstration of support from nearly 800 groups, the Senate failed to move this reasonable legislation forward. This legislation would have provided consumers with a greater amount of information in a consistent, clear manner. Farmers are committed to creating greater transparency in the food system, but we also need Congress to set clear, commonsense guidelines that are based in science and keep food affordable for American families.

 “We still see the possibility for a bipartisan agreement on this in the near future, and will continue working with Chairman Roberts and Senator Stabenow to realize this possibility.

 “The impending implementation of a patchwork of state labeling legislation will soon harm both the American families who grow food and those who buy it. Given the overwhelming scientific evidence of the safety of this technology and the vital role it will play in meeting the growing need to feed a growing global population, on-pack labeling that would create confusion and stigmatize biotechnology serves only a small activist population at the expense of consumers.

“We urge the Senate to stand with farmers and consumers, not political activists. We must continue working to solve this critical issue.”



Statement  Regarding Senate GMO Labeling Vote
Steve Nelson, President, NE Farm Bureau

“We are disappointed the Senate failed to advance this compromise which would have created a voluntary federal GMO labeling standard that also preempts a damaging patchwork of state-by-state GMO Labeling laws. It is our hope that negotiations will continue and a final agreement will be reached before Congress adjourns for the Easter break. We thank Senators Deb Fischer and Ben Sasse for their vote to help avoid unnecessary grocery cost increases and allow for continued innovation in agriculture.”



Statement by AFBF President Zippy Duvall Regarding Senate GMO Labeling Vote

"It is inexcusable that today's Senate vote on a voluntary federal GMO labeling bill that preempts a damaging patchwork of state measures fell short. While we appreciate Senate Majority Leader Mitch McConnell scheduling this floor vote today, we will continue our fight for this vital piece of legislation, along with Senate Ag Committee Chairman Pat Roberts and others, to secure a law that supports consumers, America's farmers and ranchers and our nation's system of affordable, productive agriculture.

"To say we are angry with those senators who abandoned farmers and ranchers and turned their backs on rural America on this vote is an understatement. Their votes opposing this measure ignored science, threw our nation's food system into disarray and undermined the public's understanding of the many benefits of biotechnology in feeding a growing and hungry population. We remain hopeful they will have a chance at redemption by correcting this situation that will otherwise lead to increased food costs for consumers and stifle agricultural innovation, which remains a strength of our nation. We must not let anyone forget that rural America and our farmers and ranchers do matter."



NMPF Statement on Senate Vote on GMO Legislation
Jim Mulhern, President and Chief Executive Officer, NMPF

“Today's vote is a disappointment, but not a defeat for those of us seeking a strong, clear, national and rational standard for food labeling.

“Despite today’s vote, we believe a bi-partisan federal policy is within reach, based on discussions with Senate offices in the last few days. We are committed to working to bridge differences and get a compromise agreement through the Senate.

“Passage of a coherent food label disclosure law by Congress is the only logical approach in order to avoid the chaotic mess that would arise from leaving this issue up to the whims of 50 different states.”



US Ethanol Stocks Down

Ethanol inventories in the United States decreased last week while production increased, according to data released Wednesday, March 16, by the Energy Information Administration.

Domestic inventory fell about 500,000 barrels (bbl), or 1.9%, to 22.9 million bbl during the week-ended March 11, narrowing a year-over-year surplus to 2.0 million bbl, or 9.8%.

Plant production rose 21,000 barrels per day (bpd), or 2.14%, to 999,000 bpd last week, while up about 5.4% year-over-year.

Blender inputs, a proxy for ethanol demand, rose 10,000 bpd, or 1.3%, to 888,000 bpd for the week, while up 2.9% year-over-year.



Growth Energy Statement on the Oversight and Government Reform Committee Hearing on the RFS

Today, the U.S. House of Representatives Committee on Oversight and Government Reform, Subcommittee on Interior and the Subcommittee on Health Care, Benefits, and Administrative Rules held an oversight hearing on the Renewable Fuel Standard (RFS). In response, Tom Buis, co-chair of Growth Energy, issued the following statement:

“Holding a hearing on the RFS without any biofuels stakeholders is unacceptable and defeats the very purpose of what this congressional committee is tasked to accomplish. Inviting only vocal critics of the RFS and not a single producer or stakeholder in the ethanol industry to testify fails to provide this committee with an objective analysis of the issue. The lack of diversity of opinions on this panel exemplifies political theater designed to drive a false narrative and discredit the success of the RFS. Furthermore, one of the most vocal RFS critics on the witness list was a professor who has been funded by the American Petroleum Institute (API).

“This is just more of the same old misinformation – a hearing that ignored hard data on the success of the RFS and that was packed with biofuel critics who relied on inaccurate information and misleading, manipulated data. Make no mistake, today’s hearing was nothing more than a coordinated attack against biofuels. Minus a few open-minded individuals who examined this issue based on facts, not pre-determined bias, this hearing did nothing to reflect the overwhelming contributions of the RFS.

“Homegrown ethanol and the RFS are major wins for the American people. Biofuels, such as ethanol, are a 21st century fuel for 21st century vehicles. They are our only alternative to oil, and the RFS is the most effective policy in reducing harmful toxic emissions that come from the oil industry’s stranglehold on our motor fuel supply. The RFS enhances consumer choice, supports hundreds of thousands of jobs across America, strengthens our energy security and slashes climate change causing emissions.

“Repealing or changing the RFS would turn back the clock and undermine the progress we’ve made toward increasing America’s energy independence and cleaning our air and environment.”



Brazil Record Soy Estimate Holds

The Brazilian 2015-16 soybean crop will reach a record 101.7 million metric tons (mmt), up sharply from 97.2 mmt last year, Agroconsult, a local farm consultancy, said Wednesday.

The consultancy only marginally adjusted its forecast compared with the 101.6 mmt published in February and established its number at the high end of expectations.

The estimate was compiled based on the findings during the Rally da Safra crop tour, which for the last two months has traveled through Brazil's main soybean-producing regions.



Wetland enhancement in Midwest could help reduce catastrophic floods of the future

According to a new study from Oregon State University, restoration of wetlands in the Midwest has the potential to significantly reduce peak river flows during floods - not only now, but also in the future if heavy rains continue to increase in intensity.

Wetland restoration could also provide a small step toward a hydrologic regime in this region that more closely resembles its historic nature, before roads and cities were constructed, forests were lost, and millions of acres tile-drained to increase agricultural production.

An evaluation of potential wetlands in one watershed in central Indiana found that if just 1.5 percent of the land were used for wetlands, the peak flow of the overall watershed could be reduced by up to 17.5 percent. Also of importance, researchers said, is that expansion of wetlands appears to provide significant benefits across a wide range of possible climate scenarios.

The study was published in Ecological Engineering, in work supported by the National Science Foundation and the National Oceanic and Atmospheric Administration.

“Flood management in the Midwest is now almost entirely concentrated on use of dams and levees,” said Meghna Babbar-Sebens, an assistant professor of civil engineering in the College of Engineering, and the Eric H.I. and Janice Hoffman Faculty Scholar at OSU.

“Wetland construction or restoration could provide a natural and ecological option to help with flood concerns, and serve as an additional tool for flood management. Greater investments in this approach, or similar approaches that increase storage of water in the upper landscape of a watershed, should be seriously considered.”

The new research considered not just the problem now – which is serious – but what the future may bring.

The study used climate models supported by the North American Regional Climate Change Assessment Program, along with a hydrology model to examine the impact of wetlands during the climate scenarios for a mid-century period from 2041 to 2070. It suggests this central Indiana region could see continued increases in extreme events, such as more extremely hot days during summer and more heavy rain in the wettest 5-day periods.

“There’s some variation in the models, but there’s general agreement that the future will bring more heavy precipitation events,” Babbar-Sebens said. “How we transfer and store runoff on the landscape is going to become even more critical.”

“From the perspective of a decision maker, an advantage of wetland construction is that it would significantly reduce flooding from heavy precipitation in almost every possible scenario. Wetlands are consistently effective.”

An obstacle at this point, she said, is that many incentive programs that support wetland restoration and creation usually focus on ecology, wildlife enhancement and water quality issues – and there are limited funding mechanisms to create upland wetlands for flood management. This limits the economic incentives for farmers and landowners to set aside room for wetlands, especially with the high price of agricultural crops.

New financial models and flood management policies would probably be needed to address this, Babbar-Sebens said.

Deforestation, agriculture and the historic growth of cities with impervious infrastructure have hugely changed the face of the Midwest and its hydrology, leading to frequent floods.

Climate change is now exacerbating that problem. In 2011, Indiana experienced record-breaking heat in seven counties, record-breaking rainfall in 22 counties, and record-breaking snowfall in six counties. The state has been declared a flood disaster area 14 times between 2000 and 2011, compared to only four times in the decade prior to that.

The great Mississippi River flood of 2011 was considered a “500-year event” and caused $2.8 billion in damage. It flooded more than 21,000 homes and businesses and 1.2 million acres of agricultural land, according to a report from the U.S. Army Corps of Engineers.

Wetlands help reduce some of these flooding problems by storing water away from stream channels and releasing it more slowly, while also improving water quality and providing wildlife habitat. Other studies have shown that wetland construction in the Mississippi-Ohio-Missouri river basins could also significantly reduce nitrogen loads in the rivers, which has led to an enormous “dead zone” in the Gulf of Mexico.

A methodology for evaluating wetlands with respect to historic climate and future climate scenarios, created in this research, should be applicable to other watersheds in the Midwest, researchers said.