Friday September 23 Cattle on Feed + Ag News

NEBRASKA CATTLE ON FEED DOWN 5 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.10 million cattle on feed on September 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 5 percent from last year.  Placements during August totaled 465,000 head, up 13 percent from 2015. Fed cattle marketings for the month of August totaled 450,000 head, up 13 percent from last year. Other disappearance during August totaled 5,000 head, down 5,000 head from last year.



IOWA CATTLE ON FEED REPORT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 580,000 head on September 1, 2016, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 3 percent from August 1, 2016, and down 6 percent from September 1, 2015. Iowa feedlots with a capacity of less than 1,000 head had 495,000 head on feed, down 6 percent from last month and down 4 percent from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,075,000 head, down 4 percent from last month and down 5 percent from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during August totaled 71,000 head, an increase of 4 percent from last month and up 1 percent from last year. Feedlots with a capacity of less than 1,000 head placed 36,000 head, up 44 percent from last month but down 48 percent from last year. Placements for all feedlots in Iowa totaled 107,000 head, up 15 percent from last month but down 23 percent from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during August totaled 90,000 head, up 18 percent from last month and up 17 percent from last year. Feedlots with a capacity of less than 1,000 head marketed 64,000 head, up 52 percent from last month but down 30 percent from last year. Marketings for all feedlots in Iowa were 154,000 head, up 31 percent from last month but down 9 percent from last year. Other disappearance from all feedlots in Iowa totaled 3,000 head.



United States Cattle on Feed Up 1 Percent
   
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.1 million head on September 1, 2016. The inventory was 1 percent above September 1, 2015.

Placements in feedlots during August totaled 1.88 million head, 15 percent above 2015. Net placements were 1.84 million head. During August, placements of cattle and calves weighing less than 600 pounds were 360,000 head, 600-699 pounds were 290,000 head, 700-799 pounds were 429,000 head, and 800 pounds and greater were 800,000 head.

Marketings of fed cattle during August totaled 1.87 million head, 18 percent above 2015.  Other disappearance totaled 41,000 head during August, 32 percent below 2015.



Scuse Visits One of the First USDA-Supported Biofuel Pumps in Nebraska

Today in Omaha, Acting Deputy Secretary Michael Scuse and Nebraska Governor Pete Ricketts visited one of the first fuel pump investments made possible through the Biofuel Infrastructure Partnership (BIP). Thanks to the investment, Nebraska motorists can now fill their tanks with E15, a cleaner burning fuel blend of 15 percent American Ethanol.

“The Biofuel Infrastructure Partnership is increasing access to lower cost, renewable, American-made fuels that will help reduce our country’s environmental impact and support our rural economy,” said Scuse. “The new availability of E15 gives consumers in Nebraska a cleaner option to fuel their vehicle at an affordable price.”

Last year, Agriculture Secretary Tom Vilsack announced that USDA would partner with 21 states through BIP to nearly double the number of fueling pumps nationwide that supply renewable fuels to American motorists. With matching commitments by state and private entities, BIP is investing a total of $210 million to strengthen the rural economy. Nebraska received nearly $2.3 million in federal funds for BIP.

In Nebraska, the Nebraska Corn Board, Nebraska Environmental Trust, individual ethanol plants and the “Prime the Pump” nonprofit organization all contributed matching funds to support the effort. Through Nebraska’s grant, 80 fuel pumps are proposed for installation across the state, with emphasis in high traffic areas, such as Lincoln, Omaha and along the Interstate 80 corridor. Kum and Go convenience store locations in and around the Omaha area are the first Nebraska sites to open E15 pumps as part of the program.

A typical gas pump delivers fuel with 10 percent ethanol, which limits the amount of renewable energy that consumers can purchase. BIP aims to increase the number of pumps, storage and related infrastructure that offer higher blends of ethanol, such as E15, E85, and even intermediate combination blends.

BIP is administered by the USDA Farm Service Agency. USDA continues to aggressively pursue investments in renewable energy to create jobs in rural communities, drive economic growth, and help reduce the nation’s dependence on foreign oil. To learn more about USDA investments in energy, visit www.usda.gov/energy.



DEADLINE APPROACHING TO APPLY FOR NATURAL RESOURCE CONSERVATION FUNDS

           Farmers and ranchers interested in soil, water and wildlife conservation are encouraged to sign up now for the Environmental Quality Incentives Program (EQIP). EQIP is available from the USDA Natural Resources Conservation Service. Those interested in receiving finding should sign up before Oct. 21, 2016.

            EQIP is a voluntary conservation program available to private landowners and operators. Through EQIP, farmers and ranchers receive financial and technical help to install conservation practices on agricultural land.

            According to Craig Derickson, NRCS State Conservationist, there are several options available to producers through EQIP.

            “EQIP is one of our most versatile programs. It offers cost share and technical assistance to apply conservation measures on cropland and rangeland, as well as for animal feeding operations and establishing or enhancing wildlife habitat. There are many opportunities available, and NRCS staff can help landowners and operators identify their EQIP options,” Derickson said.

            The Environmental Quality Incentives Program has become one of the most widely applied conservation programs in Nebraska; enrolling over 296,000 acres in 2016 with over 800,000 acres currently under contract statewide. Since its inception in 1996, EQIP has treated over 6 million acres through 19,907 contracts in Nebraska.

The goal of EQIP is to provide a financial incentive to encourage landowners to install conservation practices that protect natural resources, resulting in cleaner air and water, healthy soil and more wildlife habitat.

Individuals interested in entering into an EQIP agreement may apply at any time, but the ranking of applications on hand to receive funding will begin Oct. 21, 2016. The first step is to visit your local NRCS field office and complete an application.

For more information about the Environmental Quality Incentives Program and other conservation programs, visit your local NRCS field office or www.ne.nrcs.usda.gov.



Court Sides with Ag Retailers on PSM
The D.C. Court of Appeals today ruled the Occupational Safety and Health Administration violated the Occupational Safety and Health Act when it issued an enforcement memorandum on July 22, 2015, redefining the "retail facility" exemption to the Process Safety Management Standard.

The Agricultural Retailers Association and The Fertilizer Institute, which brought the suit to court, are pleased with the decision.

"OSHA made a bad decision in regulating ammonia in response to an ammonium nitrate incident, and the agency made that decision incorrectly," said ARA President & CEO Daren Coppock. "Although ARA could only challenge on the procedural point and not the decision itself, we're still very pleased to see the Court rule in our favor and to provide this relief to our members."

Ag retailers are exempt from PSM until OSHA completes a notice-and-comment rulemaking process regarding PSM, which could take several years to finalize. ARA is currently reviewing the court's decision and will provide additional analysis once our assessment is complete. For now, retailers can celebrate a victory on the legal front.

"It's a big win. Given the significant economic costs and absence of any safety benefit, the court made the correct decision," said ARA Chairman Harold Cooper. "The retail exemption has been in place for more than 20 years and OSHA should not have redefined it without an opportunity for stakeholders to comment."



Statement by Steve Nelson, President, Regarding Court Action on OSHA Regulation of Anhydrous Ammonia Fertilizer

“Today’s action by the U.S. Court of Appeals for the D.C. Circuit forcing the Occupational Safety and Health Administration (OSHA) to go through a formal rulemaking process before applying stricter standards to retailers of anhydrous ammonia fertilizer is a mark on the win column for Nebraska farmers and fertilizer suppliers.”

“Since OSHA reversed its long-standing policy of exempting anhydrous ammonia retail facilities from extensive federal regulations in July of 2015, Nebraska Farm Bureau and others have challenged the flawed logic OSHA used to justify additional regulations on fertilizer suppliers which ultimately would drive up fertilizer costs for Nebraska farmers and could possibly limit access to anhydrous ammonia fertilizer product.”

“OSHA initiated the changes as a direct result of an explosion at a fertilizer facility in West, Texas in 2013. While Anhydrous ammonia was present at the facility, it’s presence was not a contributing factor to the explosion and investigators later found the explosion was the result of an intentional criminal act.”

“Despite these facts, OSHA has continued to push forward with this needless regulation on agriculture. The fertilizer industry estimates the rule could cost fertilizer suppliers in the neighborhood of $100,000 per facility which would ultimately translate to higher costs for farmers. Today’s court action will force OSHA to go back to the drawing board to justify their actions, and hopefully mark the beginning of the end for this unwarranted regulatory burden.”



Fischer: Court Decision a Victory for NE Ag Producers

Today, the U.S. Court of Appeals for the D.C. circuit ruled in favor of production agriculture by finding that the Occupational Safety and Health Administration (OSHA) violated the law when it issued new standards for anhydrous ammonia storage. Anhydrous ammonia is an important fertilizer used by ag producers in Nebraska and across the country. U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Environment and Public Works Committee (EPW), released the following statement after today’s ruling:

“Earlier this year, I joined Senator Heidi Heitkamp in introducing the FARM Act, bipartisan legislation that would stop these onerous OSHA standards. We came together to provide some relief for ag producers and force the administration to follow the law. Today’s ruling by the federal court reinforces the provisions in our bill and sets an important precedent for other harmful regulations. Now, our ag producers will face one less hardship so they can focus on feeding the world and providing for their families.”

On July 22, 2015, OSHA issued new standards to restrict farmers’ abilities to access critical tools, like anhydrous ammonia, that are necessary for them to feed the world. OSHA’s policy would have required facilities that store or transport 10,000 pounds or more of anhydrous ammonia to obtain Process Safety Management Standard documentation. If the facility is unable to obtain this documentation, they would be forced to purchase new storage tanks, costing $70,000 or more.

The new standards were announced in July 2015 and became effective immediately.

On July 14, 2016, Senator Fischer joined Senator Heidi Heitkamp (D-N.D.) to introduce bipartisan legislation, known as the FARM Act, which would stop OSHA’s harmful federal standards. Today’s decision by the U.S. Court of Appeals reinforced the provisions in the FARM Act. It ordered OSHA to vacate its memorandum for failure to abide by the proper notice and comment periods required by law.



 Smith Applauds Court Ruling Against OSHA’s Unilateral Rulemaking

Congressman Adrian Smith (R-NE) released the following statement today after the D.C. Circuit Court of Appeals ruled the Occupational Safety and Health Administration (OSHA) acted illegally when it issued new requirements for anhydrous ammonia storage without a public comment period.

OSHA’s interpretive memorandum impacts approximately 3,800 agriculture retailers and would cost the industry in excess of $100 million to comply, likely forcing small retailers to stop selling anhydrous ammonia and restricting producers’ access to this important input.  When issued in July 2015, OSHA’s changes took effect immediately.

Smith introduced the Fertilizer Access and Responsible Management (FARM) Act in the House in May 2016 to block OSHA’s new regulations on anhydrous ammonia.  Today’s ruling requires OSHA to utilize the formal rulemaking process if the agency wishes to pursue a rule change on anhydrous ammonia.

“The Obama administration has made a habit of unilateral action, but I am glad the judicial branch has stepped in to protect producers from this unlawful regulation,” Smith said.  “Retailers and producers deserve to have their voices heard on the impacts of a rule change of this magnitude rather than having it forced upon them with no input.  We must continue working to empower producers and remove barriers to their success, namely by rolling back onerous regulations like this one.”



Micronutrients Play Large Role in Keeping Plants Healthy

Micronutrients may be found in small amounts in the soil but they play a huge role in plant growth and development. In fact, most micronutrients in the soil are involved in critical enzymatic reactions such as photosynthesis and respiration.plant illustrating micronutrient deficiencies

These micronutrients, and their function in the soil, is the subject of a new Iowa State University Extension and Outreach publication titled "Suggested soil micronutrient levels and sampling procedures for vegetable crops" (HORT 3063).

The publication was written by Ajay Nair, assistant professor of horticulture and extension vegetable production specialist at Iowa State University.

“Generally Iowa’s soils are very productive and have sufficient amounts of nutrients for healthy crops to grow,” Nair said. “It’s not often that we think about micronutrients in the soil, because we don’t often see a shortage in our plants because the soil is so good. However, that doesn’t mean deficiencies can’t show up.”

Regular soil testing is important to maintain a proper nutrient management plan. These tests should be done yearly to provide information on nutrient concentration, pH, soil organic matter and salinity.

“Regular soil testing is critical,” Nair said. “We recommend one test per year and prefer it be done in the fall. If the sample is taken in the fall then there is time to take corrective measures in the fall for optimum soil nutrient levels in the spring. While soil tests should be run yearly, testing specifically for micronutrients should be done every four to five years.”

The publication also includes a table with information on six different micronutrients and their roles in plants, deficiencies and what happens when there is an excess of that nutrient.

There is also information on proper techniques for obtaining leaf samples of common vegetable plants for nutrient testing.

“Deficiencies show up in different areas of the plant, sometimes in the upper leaves or the lower leaves depending on the type of nutrient,” Nair said. “Sending tissue showing the deficiency isn’t enough. We need to be able to compare it with something that is healthy in that field so we can have a baseline to test the deficient leaves against.”

ISU’s Soil and Plant Analysis Laboratory provides cost-effective analytical testing and research-based limestone and fertilizer recommendations to support sustainable management decisions. The laboratory provides soil, plant, water and environmental testing services and can be contacted at 515-294-5567 or soiltest@iastate.edu.



Cold Storage Highlights

Total red meat supplies in freezers on August 31, 2016 were up 1 percent from the previous month but down 3 percent from last year. Total pounds of beef in freezers were up 1 percent from the previous month and up 1 percent from last year. Frozen pork supplies were up 1 percent from the previous month but down 7 percent from last year. Stocks of pork bellies were down 37 percent from last month but up 132 percent from last year.

Total frozen poultry supplies on August 31, 2016 were down 4 percent from the previous month but up 4 percent from a year ago. Total stocks of chicken were down 6 percent from the previous month and down 1 percent from last year. Total pounds of turkey in freezers were up slightly from last month and up 11 percent from August 31, 2015.

Total natural cheese stocks in refrigerated warehouses on August 31, 2016 were down 3 percent from the previous month but up 6 percent from August 31, 2015. Total natural cheese stocks were a record high for the month of August, since the data was first recorded in 1921.  Butter stocks were down 3 percent from last month but up 52 percent from a year ago.

Total frozen fruit stocks were up 3 percent from last month and up 15 percent from a year ago. Total frozen fruit stocks were a record high for the month of August, since the data was first recorded in 1923.

Total frozen vegetable stocks were up 17 percent from last month and up 6 percent from a year ago. Total frozen vegetable stocks were a record high for the month of August, since the data was first recorded in 1962.



DYK Beef Checkoff Consumer Information Shorts

Did you know ... the Beef Checkoff Program has launched an updated beef resources web page dedicated to sharing nationally focused beef-education tools with teachers, volunteers, farmers and ranchers? The page features a new video highlighting the 2016 checkoff-funded “On the Farm” STEM event (curriculum based on educating students in Science, Technology, Engineering and Math) and its impact on district- and university-level STEM coordinators.

Did you know ... CLW Foods, a national supplier of fresh and frozen ground-beef products, is the latest company to work with the beef checkoff to participate in the American Heart Association® Heart-Check Food Certification program? The partnership enables CLW Foods to display the trusted Heart-Check mark on four extra-lean ground-beef products (bulk, patties and private labels), signifying they meet the Association’s criteria for what it calls “heart-healthy” foods as part of an overall healthy dietary pattern. Extra-lean ground beef is one of nine fresh beef cuts and cut variations certified by the American Heart Association. CLW Foods is a ground beef supplier to national retail chains, such as Albertsons and Safeway stores. The Heart-Check certification program aims to help shoppers make heart-healthy selections and informed decisions about nutrition. The fee for retailers, packers and processors now is covered by the checkoff’s trade-association certification program.

To learn more about your beef checkoff investment, visit MyBeefCheckoff.com.



Statement from U.S. DDGS Organizations On Preliminary Duties Against U.S. DDGS From China

A statement from the U.S. Grains Council (USGC), the Renewable Fuels Association (RFA) and Growth Energy:

"We are deeply disappointed that China’s Ministry of Commerce has issued a preliminary determination claiming that U.S. dried distiller’s grains with or without solubles (DDGS) are being dumped and have caused injury to China’s DDGS industry.

"As part of our three-decade long partnership with China, we have worked closely with government agencies, industry associations, and the feed and livestock industries in China to educate stakeholders about the benefits of both imported and domestic DDGS as an alternative feed ingredient.

"We are proud of the role that U.S. and Chinese DDGS have played in helping China’s animal feed industry to produce high-quality animal feed products to supply China’s rapidly growing meat industry, and in ensuring that Chinese consumers continue to have access to safe, affordable and nutritious protein products.

"As the Council asserted at MOFCOM’s hearing, U.S. DDGS have not caused any injury to China’s DDGS producers. Instead, DDGS play an important role in protecting Chinese feed producers and households against unpredictable swings in global commodity prices.

"We welcome opportunities to work together with the Chinese government, Chinese feed producers and consumers to continue to meet China’s growing feed demand in a mutually beneficial way for all parties as China implements market-oriented agricultural pricing reforms.

"We are confident that U.S. DDGS are not being dumped and are not causing or threatening injury to Chinese producers.

"Our industry deeply appreciated the support that we received at the recent hearing in China from our Chinese customers, and we remain hopeful that MOFCOM will find in its final determination that continued access for U.S. DDGS is in China’s interest."



TPP PROSPECTS GET A LITTLE BRIGHTER

The prospects for a congressional vote this year on the Trans-Pacific Partnership agreement have been boosted recently by several prominent politicians. Last week, Sen. Orrin Hatch, R-Utah, chairman of the Senate Finance Committee, which has jurisdiction over trade matters, told reporters the upper chamber could consider the TPP during a “lame duck” session – the period after the Nov. 8 election and the end of the year. Wednesday House Ways and Means Committee Chairman Kevin Brady, R-Texas, echoed Hatch in an interview with the Texas Tribune. “What I'm absolutely certain of is, every day we delay in accessing that Asia-Pacific region, the more we lose economically,” he told the paper. “I think it is a mistake to withdraw from Trans-Pacific Partnership because if America abandons the Asia-Pacific markets, we’ll lose.”

Also this week, Bill Clinton told CNBC, “The geopolitical reasons for [TPP] from America’s point of view are pretty clear.” Although Democrat presidential nominee Hillary Clinton has expressed opposition to the deal, the former president seemed to indicate she would like to make changes to the agreement but would support it as president.

Also weighing in on the agreement this week was Japanese Prime Minister Shinzo Abe, who was in New York for the U.N. General Assembly. “Japan and the U.S. must each obtain domestic approval of the TPP as soon as possible for its early entry into force,” he said. “Success or failure will sway the direction of the global free-trade system, and the strategic environment in the Asia-Pacific.”

The TPP includes the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which combined have 800 million consumers and account for nearly 40 percent of global GDP.

Getting Congress to take up and pass the agreement this year is the top priority of the National Pork Producers Council, which has called the trade deal the biggest commercial opportunity ever for pork producers and a “landscape-changing” agreement. According to Iowa State University economist Dermot Hayes, the TPP will cause U.S. pork exports to the 11 TPP partner countries to increase exponentially, creating 10,000 new U.S. jobs tied to those exports.

 

USDA’S VILSACK QUESTIONED ON PENDING GIPSA RULE

U.S. Department of Agriculture Secretary Tom Vilsack Wednesday defended his agency’s proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule at a Senate Agriculture Committee hearing on the state of the farm economy. The so-called GIPSA Rule was proposed in 2010 to implement provisions related to the buying and selling of livestock and poultry included in the 2008 Farm Bill. But the proposed rule went well beyond the Farm Bill mandates and would have had a significant negative effect on the livestock industry.

While the new rule – expected to be issued in the coming weeks – has yet to be made public, the 2010 one would have cost the U.S. pork industry more than $330 million annually, according to a November 2010 Informa Economics study. (An updated study found that the regulation would cost even more to implement today.) Tens of thousands of comments, including 16,000 from pork producers, were filed in opposition to the 2010 rule, and Congress several times included riders in USDA’s annual funding bill to prevent it from finalizing the regulation. But no rider was included in the fiscal 2016 agricultural funding bill, and USDA earlier this year indicate it would move forward with new GIPSA rule.

At Wednesday’s hearing, committee member Sen. Thom Tillis, R-N.C., raised concerns about the lack of clarity surrounding details of the rule and stressed the need for stakeholder input. “We’ve got a concern with the GIPSA rule. Because we don’t have a lot of clarity on it, it looks like a replay of the 2010 proposed rule,” Tillis said. Vilsack refused to comment on the final outcome of the rule, but when pressed by Sen. Joni Ernst, R-Iowa, he alluded that the agency would take public input. “I can assure you we are not going to put out something that doesn’t allow people to review it, understand it and give us feedback,” Vilsack said.



NEBRASKA CHICKEN AND EGGS

All layers in Nebraska during August 2016 totaled 9.35 million, up from 5.86 million the previous year, according to the USDA's National Agricultural Statistics Service. Nebraska egg production during August totaled 231 million eggs, up from 150 million in 2015. August egg production per 100 layers was 2,474 eggs, compared to 2,559 eggs in 2015.

IOWA CHICKEN AND EGGS
Iowa egg production during August 2016 was 1.29 billion eggs, up 4 percent from last month, and up 68 percent from last year, according to the latest Chickens and Eggs report from the USDA’s National Agricultural Statistics Service.   The average number of all layers on hand during August 2016 was 52.6 million, up 1 percent from last month, and up 56 percent from last year. Eggs per 100 layers for August were 2,458, up 3 percent from last month, and up 8 percent from last year. This is Iowa’s highest rate of lay recorded in the past eight years.

August Egg Production Up 10 Percent
United States egg production totaled 8.58 billion during August 2016, up 10 percent from last year. Production included 7.44 billion table eggs, and 1.14 billion hatching eggs, of which 1.05 billion were broiler-type and 92.2 million were egg-type. The total number of layers during August 2016 averaged 358 million, up 7 percent from last year. August egg production per 100 layers was 2,395 eggs, up 3 percent from August 2015.
                                   
All layers in the United States on September 1, 2016 totaled 360 million, up 7 percent from last year. The 360 million layers consisted of 302 million layers producing table or market type eggs, 53.6 million layers producing broiler-type hatching eggs, and 3.66 million layers producing egg-type hatching eggs. Rate of lay per day on September 1, 2016, averaged 76.7 eggs per 100 layers, up 2 percent from September 1, 2015.

Egg-Type Chicks Hatched Down 7 Percent
Egg-type chicks hatched during August 2016 totaled 43.9 million, down 7 percent from August 2015. Eggs in incubators totaled 44.0 million on September 1, 2016, down 5 percent from a year ago.  Domestic placements of egg-type pullet chicks for future hatchery supply flocks by leading breeders totaled 242 thousand during August 2016, up 46 percent from August 2015.

Broiler-Type Chicks Hatched Up 1 Percent
Broiler-type chicks hatched during August 2016 totaled 808 million, up 1 percent from August 2015. Eggs in incubators totaled 648 million on September 1, 2016, up 2 percent from a year ago.  Leading breeders placed 7.69 million broiler-type pullet chicks for future domestic hatchery supply flocks during August 2016, down 3 percent from August 2015.



Certified Organic Farms Up 13 Percent in 2015

More than 12,000 certified organic farms in the United States generated $6.2 billion in sales in 2015, an increase of 13% from $5.5 billion reported in 2014, the U.S. Department of Agriculture reports in its 2015 Certified Organic Survey.

Ten states accounted for 78% of all certified organic food sales. California led with $2.4 billion, which accounted for 40% of the total value of all certified organic sales in the United States.

The value of sales from organic milk and eggs led all food categories with $1.9 billion followed by vegetables with $1.4 billion; fruits, tree nuts and berries with $1.2 billion; meat and poultry at $743 million and field crops at $660 million.

The top five commodities in certified organic sales were milk, eggs, broiler chickens, apples and lettuce.



MONSANTO ANNOUNCES $1.6 MILLION INVESTMENT IN DEVELOPING SYSTEM TO HELP AGRICULTURE QUANTIFY GREENHOUSE GAS REDUCTIONS

The U.S. Department of Agriculture – Natural Resources Conservation Service (USDA-NRCS) recently awarded the National Corn Growers Association (NCGA) and its Soil Health Partnership (SHP) a $1 million Conservation Innovation Grant (CIG) to help farmers better understand and adopt farming practices that help reduce climate change impacts. Monsanto announced today it also intends to make an additional investment of $1.6 million in this collaborative effort to help provide expertise, tools and needed resources to further develop a system that will help verify and quantify greenhouse gas reductions from carbon smart farming practices.

USDA’s CIG program fosters innovation in conservation tools and strategies to improve things like on-farm energy and fertilizer use as well as market-based strategies to improve water quality or mitigate climate change.

“Climate change is a global challenge facing the entire planet and agriculture has the opportunity to be a huge part of the solution. We’re honored to be partnering with NCGA and the SHP on this grant from USDA-NRCS.  Together, we can bring focus and resources to help identify ways that modern agriculture helps drive sustainability,” said Brett Begemann, Monsanto President and Chief Operating Officer. “We look forward to continued collaboration with farmers and forward-thinking industry partners who are leading the way in making greenhouse gas reduction a reality on the farm.”

Monsanto, in conjunction with the CIG project partners (NCGA, AgSolver, Applied GeoSolutions, DNDC-ART, Climate Smart Group and CropGrowers) will develop a framework that draws on existing greenhouse gas modeling science, emerging  verification technologies (satellite data), and proven precision business planning methods to drive adoption of conservation practices and validate that farmers are helping achieve greenhouse gas reductions.

“To significantly scale up greenhouse gas mitigation practices, a sustainable agriculture systems approach is needed that is simpler and more cost-effective for the farmer,” said Michael Lohuis, Ph.D., Monsanto’s Director of Ag Environmental Strategy. “The system being developed will help remove barriers to confirming adoption of best practices and to quantify the benefits these innovative farm practices can have to air, soil and water quality.”

Monsanto is committed to sharing key learnings with farmers around the world to scale up adoption of carbon neutral agriculture practices. The company is working closely with farmers on sustainable agriculture systems and has pledged to make its own operations carbon neutral by 2021. As part of that commitment, last month the company released a scientific report titled, “Charting a Path to Carbon Neutral Agriculture: Mitigation Potential for Crop Based Strategies,” which examines the potential for reducing GHG emissions through agriculture in the United States. The report shows that adoption of innovative production practices such as cover crops, conservation tillage, precision nutrient management and data science could potentially result in the reduction of more than 100 million metric tons of carbon dioxide-equivalent emissions in the United States alone.