Tuesday February 28 Ag News

GFDC Announces Development on Costco/Lincoln Premium Poultry Project

The Greater Fremont Development Council announced the completion of the land purchase for the Costco and Lincoln Premium Poultry project.

“We are extremely pleased to announce that Costco has completed its land purchase transaction and that it continues to make great headway with state and local authorities on the permitting process,” said Cecilia Harry of the Greater Fremont Development Council, a partner of the Greater Omaha Economic Development Partnership.

“We’re thrilled with Costco’s progress and anticipate receiving news of its final approval in the very near future,” said Fremont Mayor Scott Getzschman. “This is one more step in their due diligence to bring this project to reality.”

Known to the local community as Hills Farm, the 414 acres of land is located in the south industrial area of Fremont. Costco and Lincoln Premium Poultry are developing a state-of-the-art poultry processing complex in Fremont, Nebraska, including a processing plant, hatchery, and feed mill. Costco will invest around $280 million in the project, which will create an annual economic impact of around $1.2 billion.



Fischer Applauds President Trump’s WOTUS Executive Order

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Environment and Public Works Committee, today joined President Donald J. Trump at the White House for the signing of an Executive Order to roll back the “Waters of the United States” (WOTUS) rule. Fischer has long been a proponent of scrapping WOTUS altogether. 

“Over the past four years, I’ve sounded the alarm about the harmful effects WOTUS would have on all Nebraskans. The American dream of owning a home would have been out of reach for many more families, due to the higher costs associated with these regulations. Taxpayers would have seen increased costs for road maintenance, and ag producers would have faced expensive permitting requirements. Today, President Trump is taking a concrete and much-needed step to unravel WOTUS and put Nebraskans back in charge of decisions affecting our state’s precious water resources,” said Fischer.

Earlier this year, Senator Fischer and Senator Joni Ernst (R-Iowa) introduced a resolution that expressed the need to vacate the Obama administration’s WOTUS rule. The resolution signified the senators’ intent to continue working with the Trump administration to scrap the harmful rule altogether.

Senator Fischer has been a leader on additional legislative efforts to stop WOTUS. Last Congress, she helped introduce the Federal Water Quality Protection Act, which would have required the Obama administration to consult states and stakeholders before imposing federal regulations on state-owned water resources. She also helped introduce the Defending Rivers from Overreaching Policies (DROP) Act. This bill targeted the flawed science used by the EPA to expand the definition of water.

In March 2015, Senator Fischer chaired a field hearing of the Senate Environment and Public Works Committee in Lincoln, Nebraska, to hear firsthand from Nebraskans about the effects of WOTUS.

The courts have also questions the dubious legality of WOTUS. In October 2015, the U.S. Court of Appeals for the Sixth Circuit issued a stay blocking the implementation of WOTUS nationwide. In January 2017, the Supreme Court decided to take up the dispute over which courts have jurisdiction to hear challenges to WOTUS.



Sasse Praises Unwinding of Waters of U.S. Rule

U.S. Senator Ben Sasse released the following statement after President Trump signed an Executive Order that will begin to unravel the Obama administration's Waters of the U.S. rule (WOTUS).

“The EPA’s unconstitutional water rule will die and Nebraska’s farmers and ranchers won’t shed a single tear. Everyone wants clean water but the bureaucrats at the EPA were out-of-control, writing new laws to regulate puddles and ditches from Washington. Nobody cares more about land and water than Nebraska’s producers but nobody here at home voted for these absurd regulations. This is excellent news for the rule of law and Nebraska agriculture.”



 Smith Joins President Trump at White House for Signing of Executive Order to Reset WOTUS

Congressman Adrian Smith (R-NE) joined President Donald Trump at the White House this afternoon for the signing of an executive order instructing the Environmental Protection Agency (EPA) and Army Corps of Engineers to go back to the drawing board on the Waters of the U.S. rule, or WOTUS.

When the Obama administration finalized WOTUS in 2015, Smith introduced the House resolution to block the rule using the Congressional Review Act, or CRA.  The Senate version of the resolution passed both chambers of Congress but was vetoed by President Obama.   

“Nebraska’s farmers and ranchers are committed stewards of our natural resources and take many steps to keep our water sources clean,” Smith said.  “You can’t tell me a bureaucrat in Washington can do a better job ensuring water quality than those who use and benefit from our water every day.

“WOTUS is a dangerous overreach, giving the EPA the power to dictate local land use decisions and farming practices nationwide.  Since the rule’s introduction, Nebraskans have expressed deep concerns about federal agencies having control over the water puddles and irrigation ditches on their properties.  Local officials have told me about infrastructure projects, such as cleaning and widening a drainage ditch, which have been needlessly delayed due to WOTUS red tape.

“The Obama administration refused to listen to the concerns of agriculture producers.  I’m glad President Trump is listening.  His order to reset WOTUS is a victory not only for farmers and ranchers but for all Americans eager for regulatory relief.”



Gov. Ricketts Comments on WOTUS Rollback

Today, Governor Pete Ricketts issued a statement following news that President Donald J. Trump had signed an executive order to begin the rollback of the Waters of the U.S. (WOTUS) rule.

“Thank you to President Trump for taking steps to end this rule which could cause irreparable harm to Nebraska’s ag producers and small businesses.  Rolling back WOTUS is key to reestablishing limits on the power of federal agencies, so we can protect families and businesses from unnecessary, job-killing regulations.”



Statement by Steve Nelson, on Behalf of Common Sense Nebraska Coalition, Regarding Defeat of the “Waters of the U.S.” Rule

 “Nebraska’s farmers, ranchers, homebuilders, small businesses, counties, and landowners welcome President Trump’s Executive Order to send the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers’ “Waters of the U.S.” (WOTUS) rule back to the drawing board. This proposal was flawed from the start and proved to be little more than a federal land grab to take away private property rights under the guise of protecting water quality.”

“We have long called for a common-sense approach to this rule and today President Trump delivered that by putting the concerns of citizens ahead of government bureaucracy and federal overreach. We will remain vigilant to ensure any revised measure brought forth by the EPA meets the needs of Nebraskans.”

Common Sense Nebraska is a diverse, Nebraska-based coalition consisting of organizations and entities that have united in response to the EPA’s “Waters of the U.S.” Rule; a regulatory proposal that would harm both rural and urban Nebraskans through expansion of the EPA’s powers and authorities under the federal Clean Water Act. The coalition’s purpose is to build awareness and understanding of the EPA proposal and the impacts it would have on Nebraskans. For more information visit Common Sense Nebraska on Facebook.

Common Sense Nebraska Coalition members include:
AKSARBEN Club Managers Association
Association of General Contractors - NE Chapter
Farm Credit Services of America
Iowa-Nebraska Equipment Dealers Association
National Federation of Independent Businesses/Nebraska
Nebraska Agribusiness Association
Nebraska Association of County Officials
Nebraska Association of Resource Districts
Nebraska Bankers Association
Nebraska Cattlemen
Nebraska Chamber of Commerce and Industry
Nebraska Cooperative Council
Nebraska Corn Board
Nebraska Corn Growers Association
Nebraska Farm Bureau Federation
Nebraska Golf Course Superintendents Association
Nebraska Grain and Feed Association
Nebraska Grain Sorghum Association
Nebraska Grain Sorghum Board
Nebraska Pork Producers Association
Nebraska Poultry Industries
Nebraska Rural Electric Association
Nebraska Soybean Association
Nebraska State Dairy Association
Nebraska State Home Builders Association
Nebraska State Irrigation Association
Nebraska Water Resources Association
Nebraska Wheat Board
Nebraska Wheat Growers Association
Nemaha Natural Resources District
Pawnee County Rural Water District #1



Following reversal of WOTUS, Iowa soybean farmers remain committed to improving water quality

Iowa Soybean Association President Rolland Schnell issued the following statement regarding today’s executive order by President Trump to reverse the Waters of the U.S. rule.

“Today’s executive order alleviates the concerns of Iowa soybean farmers who feared the burden the broadened authority the Waters of the U.S. rule would have on their farms.

“Farmers and landowners have long spoken out about the potential adverse impact to agriculture. We appreciate the Trump administration’s quick action after hearing the merits of our concerns.

“The Iowa Soybean Association has long engaged and supported protecting Iowa’s water. While we recognize the need for clearer definitions within the Clean Water Act, we also are aware of the challenges farmers face from the ever changing landscape that can make management of Iowa’s water ways a moving target. Removing this rule does not change the commitment of Iowa soybean farmers to improving Iowa’s water quality.

“Iowa soybean farmers will continue to implement practices and support projects that protect and improve Iowa’s water quality.

“Water quality improvement in Iowa is warranted. Iowa soybean farmers remain focused on advancing real solutions to better water through the use of watershed planning, reduced tillage, cover crops and targeting installation of conservation practices where they have the most impact on the quality of our rivers, lakes and streams.



Cattlemen Applaud President for Ordering Reconsideration of “Extremely Flawed” WOTUS Rule

Craig Uden, president of the National Cattlemen’s Beef Association (NCBA) today released the following statement in response to President Trump’s executive action ordering the Environmental Protection Agency (EPA) and the Army Corps of Engineers to reconsider their controversial Waters of the United States rule:

“This extremely flawed rule would force ranchers and feedlot operators to get permits or risk excessive federal penalties despite being miles away from any navigable water. It would be one of the largest federal land grabs and private-property infringements in American history, and the President should be applauded for making EPA and the Corps reconsider this debacle. Ultimately, this rule should be taken out behind the barn and put out of its misery.”



Trump Repeals Waters of the U.S. Rule

The National Pork Producers Council (NPPC) applauds an executive order issued today by President Trump that begins the process of rescinding or rewriting a controversial Clean Water Act regulation that would have given the government broad jurisdiction over land and water.

The order directs the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers to conduct a formal review of the Waters of the United States (WOTUS) rule, which took effect Aug. 28, 2015, and ostensibly was implemented to clarify the agency’s authority over various waters. That jurisdiction – based on several U.S. Supreme Court decisions – had included “navigable” waters and waters with a significant hydrologic connection to navigable waters. But the regulation broadened that to include, among other water bodies, upstream waters and intermittent and ephemeral streams such as the kind farmers use for drainage and irrigation. It also covered lands adjacent to such waters.

“America’s pork producers are very pleased that the president ordered EPA and the Corps of Engineers to repeal or rewrite this ill-conceived, overbroad regulation,” said NPPC President John Weber, a pork producer from Dysart, Iowa. “The WOTUS rule was a dramatic government overreach and an unprecedented expansion of federal jurisdiction and control over private lands.

“It was the product of a flawed regulatory process that lacked transparency and no doubt would have been used by trial lawyers and environmental activists to attack farmers.”

NPPC helped lead the agricultural community’s opposition to the rule, including producing maps showing the extent of the lands affected by the regulation. (EPA’s jurisdiction in Missouri, for example, would have increased by 77 percent under the WOTUS rule.) The organization also led the legal efforts against the rule, filing suit in a U.S. District Court and presenting a brief to a U.S. Court of Appeals. The latter halted implementation of the rule.

In arguing against the regulation to the appellate court, NPPC pointed out that EPA and the Corps of Engineers failed to reopen the public comment period after making fundamental changes to the rule before it took effect and withheld until after the comment period closed the scientific report on which the rule was based. The agencies also refused to conduct required economic and environmental analyses, engaged in a propaganda campaign to promote the rule and rebuke its critics and illegally lobbied against congressional efforts to stop implementation of the rule, said NPPC in its court brief.

“The WOTUS rule sought to hand control of land-use planning decisions to out-of-touch activists and government regulators in New York, San Francisco and Washington,” Weber said. “We all want clean water, but this regulation was just a big government land grab that would have allowed activists to micromanage all kinds of farming and business activities. We applaud President Trump for taking this action.”



President Trump Overturns WOTUS

The National Corn Growers Association today applauded President Donald Trump for issuing an executive order repealing the 2015 Waters of the U.S. (WOTUS) rule.

“We appreciate the Trump Administration’s commitment to reducing regulatory burdens for America’s farmers and ranchers,” said NCGA President Wesley Spurlock. “We fully support the repeal of the WOTUS rule. Farmers and ranchers care deeply about clean water, but this rule had significant flaws. It was arbitrarily written, legally indefensible, and extremely difficult to implement.”

The WOTUS rule, which was issued by the U.S. Environmental Protection Agency and Army Corps of Engineers under the Obama Administration, was challenged in courts by more than 30 states, environmental organizations, and numerous industry groups including the National Corn Growers Association. In October 2015, a federal appeals court issued a stay preventing the rule’s implementation.

“NCGA remains committed to work with the EPA to ensure farmers have clarity and certainty they need about the regulations affecting their operations,” said Spurlock.



Water Regulation Must Focus on the Farmer as Environmentalist

The American Soybean Association (ASA) cheers a direction issued today by President Donald Trump instructing the U.S. Environmental Protection Agency to begin the process of rolling back the controversial Clean Water Rule, also known as the Waters of the United States rule. ASA President Ron Moore, who farms in the Mississippi River watershed in Western Illinois, issued the following statement on the administration's action:

"We are very happy to see a signal of clarity to come on the Clean Water Rule from President Trump today. Our concern with the rule has always about the nonspecific and overly broad nature of the rule as written, and never about the paramount goal of cleaner water and more environmentally sound farming practices. We believe that farmers can be a productive voice in the discussion over water regulation, and we look for a seat at the table, because as farmers, our primary goals are the healthy soils and clean water that sustain us from growing season to growing season. I'm 35 miles from the Mississippi River, and I've farmed my land for 36 years. I count on productive soil and clean water more than any other inputs, and I wouldn't be able to make it year to year if I fouled such important pieces of my operation. This rule, however, sought to expand EPA's authority into places where it was either unnecessary or duplicative, without any reasonable justification for doing so. We look forward to to collaborating with President Trump, Administrator Pruitt and others in the administration and Congress to pursue clean water goals in a way that respects both the environment and the farmer as an environmentalist."



Farm Bureau Praises Trump’s WOTUS Action
American Farm Bureau Federation President Zippy Duvall

“President Trump’s executive order to ditch the Waters of the U.S. rule is a welcome relief to farmers and ranchers across the country today.

“The flawed WOTUS rule has proven to be nothing more than a federal land grab, aimed at telling farmers and ranchers how to run their businesses. The Environmental Protection Agency failed to listen to farmers’ and ranchers’ concerns when drafting the rule and instead created widespread confusion for agriculture. Under the rule, the smallest pond or ditch could be declared a federal waterway.

“Farmers and ranchers have been calling for a common-sense approach to regulatory reform, and today the Trump administration responded to that call. EPA has too long been characterized by regulatory overreach that disregards the positive conservation efforts of farmers and threatens their very way of life. Today’s action is as much a beginning as an end, and there is much work to do to ensure that any revised rule is transparent and fair for America’s farmers and ranchers.”



Comment from National Grange President on Executive Order about WOTUS

National Grange President Betsy Huber said Tuesday, “The Waters of the United States Rule has been the subject of great concern in rural communities and for those involved in agriculture since it was drafted. The expansion of the definition of ‘navigable water’ includes puddles, long-dried ditches and other land that collects rainwater but does not act as a waterway. This would bring nearly all of our farms to a halt as they attempted to comply with a rule that intrudes too far into property rights.

"In essence, the WOTUS rule was a veiled attempt to bring entire watersheds under federal land use control, whether the water there was impaired or not. We are happy the administration is taking a step back to allow for more vetting of the rule before potential implementation."



NMPF Commends Executive Order to Begin Rollback of Waters of the U.S. Rule
Jim Mulhern, President and CEO, National Milk Producers Federation

“President Donald Trump’s decision today to roll back the controversial Waters of the U.S. regulation is a welcome development for the nation’s dairy farmers, who have been concerned by the continuing lack of clarity and certainty generated by this policy. Today’s action signals that the Trump Administration recognizes we need to go back and rethink the entire process that led us to this point.

“The Waters of the U.S. rule was finalized by the Environmental Protection Agency (EPA) and the Army Corps of Engineers in 2015, but was subsequently blocked by a federal appeals court, which has suspended nationwide implementation of the regulation. Today’s decision directs EPA to revise or rescind the rule that expanded the number of waterways that are regulated under the Clean Water Act. Despite NMPF’s best efforts to influence EPA’s work on this measure several years ago, we were disappointed with many aspects of the final rule.

“NMPF and its members are committed to protecting U.S. waterways through voluntary efforts, as well as through regulatory compliance with the Clean Water Act. Clean water is central to healthy ecosystems, secure water supplies for human and animal consumption, and to the production of milk and other dairy products. The dairy industry will continue working with EPA and Army Corps of Engineers to find effective ways to achieve these important goals.”



News release: Farmer Co-ops Welcome Administration’s New Direction on Waters of the US Rulemaking

The National Council of Farmer Cooperatives (NCFC) welcomed President Trump’s executive action today moving in a new direction on defining “Waters of the U.S.” (WOTUS) under the Clean Water Act (CWA).   The Executive Order issued today will start a review and revision process to replace the WOTUS rule. That rule was issued in 2015 and then promptly became the subject of numerous lawsuits.

“In issuing the WOTUS rule in 2015, the Obama Administration greatly expanded federal jurisdiction over lands that Congress never intended to be regulated by the Clean Water Act. President Trump’s action today corrects that overreach and sets the stage for a more deliberate and reasonable approach in defining what is a WOTUS,” said Chuck Conner, president and CEO of NCFC.  “A new approach can ensure that Americans can enjoy clean water while limiting the rule’s impact on upland areas and isolated waters.”

The 2015 WOTUS rule raised numerous concerns for states, local governments, landowners, and the regulated community, leading to legal challenges by over thirty states, numerous industry groups and environmentalist groups on both procedural and substantive grounds.  The District Court of North Dakota and the 6th Circuit Court of Appeals stayed the rule because they believe that the rule is flawed and that the challengers of the rule would “likely succeed on the merits” of the case.

“Farmer cooperatives look forward to working with the Administration to develop a new rule that fully protects water quality while keeping CWA implementation within the bounds of congressional intent and Supreme Court precedent,” Conner added.  “We fully endorse the goal of the CWA to keep pollutants out of our nation’s waters, and look forward to a rulemaking that supports our longstanding and ongoing efforts to achieve that goal.”



ANNUAL NEBRASKA CHICKEN AND EGGS

Nebraska's layer numbers during 2016 averaged 8.84 million, up 15 percent from the year earlier, according to the USDA’s National Agricultural Statistics Service. The annual average production per layer on hand in 2016 was 291 eggs, down two percent from 2015.

Nebraska egg production during the year ending November 30, 2016 totaled 2.57 billion eggs, up 12 percent from 2015.

Total number of chickens on hand on December 1, 2016 (excluding commercial broilers) was 10.7 million birds, up 13 percent from last year.

The total value of all chickens in Nebraska on December 1, 2016 was $41.6 million, up 13 percent from December 1, 2015. The average value per bird of $3.90 was unchanged from December 1, 2015, to December 1, 2016.



USDA 2016 CHICKEN & EGG Highlights

United States Average Number of Layers Up 4 Percent: Layer numbers during 2016 averaged 365 million, up 4 percent from the year earlier. The annual average production per layer on hand in 2016 was 279 eggs, up 1 percent from 2015.

United States Egg Production up 5 percent: Egg production during the year ending November 30, 2016 totaled 102 billion eggs, up 5 percent from 2015. Table egg production, at 88.4 billion eggs, was up 5 percent from the previous year. Hatching egg production, at 13.6 billion eggs, was up 2 percent from 2015.

United States December 1 Chicken Inventory Numbers: The total number of chickens on hand on December 1, 2016 (excluding commercial broilers) was 495 million birds, up 4 percent from last year.

United States Total Value: The total value of all chickens on December 1, 2016 was $2.08 billion, down slightly from December 1, 2015. The average value decreased from $4.37 per bird on December 1, 2015, to $4.20 per bird on December 1, 2016.



MONTHLY NEBRASKA CHICKEN AND EGGS

All layers in Nebraska during January 2017 totaled 8.81 million, up from 8.27 million the previous year, according to the USDA’s National Agricultural Statistics Service.

Nebraska egg production during January totaled 229.6 million eggs, up from 184.1 million in 2016. January egg production per 100 layers was 2,606 eggs, compared to 2,226 eggs in 2016.



IOWA CHICKEN & EGGS REPORT

 Iowa egg production during January 2017 was 1.38 billion eggs, up slightly from last month, and up 53 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 January 2017 was 55.5 million, up 1 percent from last month, and up 32 percent from last year. Eggs per 100 layers for January were 2,486, down 1 percent from last month, but up 16 percent from last year, and the second highest rate of lay since records began in 1988.



January Egg Production Up 9 Percent

United States egg production totaled 9.04 billion during January 2017, up 9 percent from last year. Production included 7.91 billion table eggs, and 1.12 billion hatching eggs, of which 1.04 billion were broiler-type and 87.7 million were egg-type. The total number of layers during January 2017 averaged 376 million, up 5 percent from last year. January egg production per 100 layers was 2,401 eggs, up 3 percent from January 2016.
                                   
All layers in the United States on February 1, 2017 totaled 376 million, up 5 percent from last year. The 376 million layers consisted of 318 million layers producing table or market type eggs, 54.7 million layers producing broiler-type hatching eggs, and 3.50 million layers producing egg-type hatching eggs. Rate of lay per day on February 1, 2017, averaged 77.1 eggs per 100 layers, up 3 percent from February 1, 2016.

Egg-Type Chicks Hatched Down 9 Percent
Egg-type chicks hatched during January 2017 totaled 43.4 million, down 9 percent from January 2016. Eggs in incubators totaled 48.0 million on February 1, 2017, up slightly from a year ago.

Domestic placements of egg-type pullet chicks for future hatchery supply flocks by leading breeders totaled 222 thousand during January 2017, up 50 percent from January 2016.

Broiler-Type Chicks Hatched Up 1 Percent
Broiler-type chicks hatched during January 2017 totaled 809 million, up 1 percent from January 2016. Eggs in incubators totaled 659 million on February 1, 2017, up 1 percent from a year ago.

Leading breeders placed 7.16 million broiler-type pullet chicks for future domestic hatchery supply flocks during January 2017, up 6 percent from January 2016.



Corn, Soybean Price Protections Higher Than in 2016

Crop insurance price guarantees for corn, soybeans and hard red spring wheat got a bump from last year.

Looking at the prices from RMA's website, the average protection price set for corn this spring is $3.96 a bushel, up 10 cents from 2016, though still below 2013-15 guarantees.

For soybeans, the price guarantee is $10.19, up $1.34 a bushel from the 2016 protection levels.

The corn guarantee is based on an average daily closing price of the CME corn contract for December throughout the month of February. For soybeans, the price guarantee is set using the daily average closing price in February for the November contract.

The price guarantee for hard spring wheat was also set for $5.65 a bushel, up from $5.13 a bushel last year.

With the closing futures prices on the Chicago Mercantile Exchange for the month of February, USDA's Risk Management Agency will officially detail the prices.



ASA Calls to Double Funding for Export Promotion Programs

American Soybean Association (ASA) Director Joe Steinkamp called on Congress to double funding for the Market Access Program (MAP) and Foreign Market Development (FMD) programs, testifying in a hearing today to the effectiveness and necessity of export promotion programs in expanding U.S. agriculture exports.

Testifying on behalf of ASA, the Coalition to Promote U.S. Agricultural Exports and the Agribusiness Coalition for Foreign Market Development before the House Agriculture Subcommittee on Livestock and Foreign Agriculture, Steinkamp touted agricultural exports as the strongest positive contributor to the U.S. trade balance and highlighted the need to increase funding for these programs.

“Despite the tremendous growth in U.S. agricultural exports, the effective level of federal funding that reaches the agricultural cooperators carrying out market development work has steadily eroded,” said Steinkamp, who farms in Evansville, Ind., and also serves as an Indiana Soybean Alliance director.

Steinkamp specifically urged Congress to increase funding for MAP to $400 million annually and for FMD to $69 million annually, with the increases phased in as part of the next Farm Bill.

“Increasing exports is a significant tool to improve the lives of America’s farmers and ranchers while creating jobs, expanding the farm economy and the larger U.S. economy, and increasing revenues to the Treasury,” Steinkamp testified. “The FMD and MAP programs have been critically important to this success.”

According to USDA’s Economic Research Service, the $150 billion in U.S. agricultural exports that occurred in 2014 supported 1.1 million full time U.S. civilian jobs, representing 7,550 jobs for every $1 billion of agricultural export revenue.

“Agricultural exports are one the brightest lights in the U.S. economy, with a strong multiplier effect that is especially pronounced in rural communities” testified Steinkamp as he reiterated his call to double funding for export promotion programs.



Growth Energy Applauds White House for Denouncing RFS Rumors

Growth Energy thanks the White House for putting a stop to the circulating rumors that an alleged “deal” had been made to change the Renewable Fuel Standard (RFS) point of obligation. This afternoon the White House confirmed to several media outlets that no executive order is imminent.

“We look forward to a constructive, ongoing dialogue with this administration and lawmakers on Capitol Hill about policies that will continue to uphold what has been the nation’s most successful energy policy, reducing oil imports and cutting transportation-related emissions,” Growth Energy CEO Emily Skor said.

“Under the RFS, the point of obligation – which obligates oil refiners to blend renewable fuel into our transportation fuel supply – is working as intended and is making sure that consumers have a choice of fuel at the gas pump. President Trump has voiced a strong commitment to the RFS and continued progress for homegrown fuels, and we are heartened by the White House’s quick efforts to silence these rumors. We look forward to a constructive dialogue with the administration on biofuel policy.”



Hog Prices Outperform Expectations
Chris Hurt, Purdue University 

The pork industry outlook has experienced a major shift to the upside. Pork producers are pleased to see 2017 hog prices higher than expected. The low point for the industry was in late November when hog prices dropped to near $32 per hundredweight on a live weight basis. Recent live prices have reached the mid-$50 and have pulled the industry out of deep losses into profitability.

The leading reason for the more favorable outlook is lower retail pork prices. Some have mentioned how strong pork consumption has been this year. One reason for that strength is lower retail pork prices. The "law of demand" says that people will buy more when prices are lower, and retail pork prices have moved lower.

Retail pork prices peaked in 2014 because of reduced supplies due to the PED virus and have generally been falling since 2015. In the final quarter of 2016, retail pork prices dropped 26 cents per pound from the same period one year earlier. The downward movement continued in January of this year with retail pork prices down 22 cents per pound from one year earlier.

An additional issue contributing to the extremely low prices for pork producers last fall was the small portion of the retail dollar getting back to producers. Another way of saying this is that the margins for the processors and retailers remained substantially higher than normal. As a result, the portion of the retail pork dollar that got back to the producer dropped to 17.5 percent. This was lower than the previous record low of 18.4 percent in the financially tragic final quarter of 1998.

Data this year are only available for January, but in that month the producer share increased to 22 percent. In cents per pound, the hog producer received 15 cents more per retail pound. That amounts to about $9.00 per hundredweight higher prices on a live hog. Lower retail prices are moving more pork and the pork producer is getting a higher percentage and a higher total value from the pork being sold.

For the rest of 2017, there is room for even lower retail prices and a higher percentage of that retail price getting back to the hog producer. Probably the biggest opportunity for hog producers is the advent of new processing capacity coming on line in the last half of 2017. The added competition for hogs will likely reduce the farm-to-wholesale margins with much of that reduction bid into higher hog prices. In 2016, for example, USDA reported the farm-to-wholesale margin as 70 cents per retail pound compared to 58 cents in 2015. Export demand remains a positive for the 2017 hog price outlook as well. USDA expects a four percent increase in exports with little change in imports.

Pork supplies are not the reason for higher hog prices in 2017. So far this year, pork production has been about three percent higher than for the same period last year.

Live hog prices are now expected to average near $51 for 2017, up from $46 in 2016. Live prices are expected to average in the very high $40s in the first quarter, then move to the low-to-mid $50s in the second and third quarters, and then finish the final quarter in the mid $40s.

Total costs of production for 2017 are expected to be near $50 per live hundredweight, similar to the annual forecast price of hogs. If so, this means pork producers will recover full costs of production in 2017. Losses in the first and fourth quarter would be offset by profits in the second and third quarter.

There has been an overall improvement in prospects for animal and animal product prices since last fall. That is true for beef, pork, and milk markets. The source of that improvement may well be related to the general improvement in the anticipated economic growth rates for the U.S.-think of the stock market increases since the election. These increases are largely based on anticipated policy that will stimulate the economy, including tax cuts, infrastructure spending, and reduced regulations.

Markets for animal products remain vulnerable to at least three outcomes that could differ from current optimism: 1) The anticipated economic stimulus is not implemented, 2) The strength of the U.S. dollar slows agricultural export sales from anticipated levels, and 3) The U.S. moves in a direction of more protectionism that increases trade barriers and reduces our agricultural export sales potential.

Each industry is trying to figure out what the new administration means for them. Agriculture incomes are importantly influenced by the domestic economy, by the global economy, by exchange rates, and by trade. Agriculture, like other industries, must take a "wait and see" attitude.



Oklahoma Cattleman Testifies in Washington on Conservation Policy

Fifth-generation Oklahoma cattle rancher Chuck Coffey today testified on behalf of the National Cattlemen’s Beef Association regarding  the value of voluntary conservation efforts. Coffey testified at the U.S. House Agriculture Committee’s Subcommittee on Conservation and Forestry’s hearing to evaluate the effectiveness of conservation programs.

“USDA’s conservation programs have been a great asset to cattle producers and it is important that these programs be implemented in a practical, producer friendly, and voluntary manner to ensure that cattlemen can continue to responsibly produce the world’s safest, most nutritious, and affordable protein,” said Coffey.

Chuck and his wife, Ruth, operate a cattle ranch in south central Oklahoma, where they own and operate over 30,000 acres of grassland. Chuck said though ranching in south central Oklahoma comes with its fair share of difficulties, by working with the Natural Resources Conservation Service (NRCS) to use voluntary conservation programs and apply management practices that enhance their operation, they have been able to keep their operation sustainable even during the drought in 2011 and 2012.

Coffey grazes his cattle with a carefully managed grazing plan developed with the assistance of the NRCS. Through cooperation with state and local agencies, in addition to the development of innovative grazing strategies, Coffey said they have increased perennial grasses on the ranch, improved ground cover, greatly reduced soil erosion, and ensured adequate forage for livestock and wildlife.

“Since our livelihood is made on the land, the utilization of our natural resources, and being good stewards of the land, not only makes good environmental sense, it is fundamental for our industry to remain strong, “said Coffey. “We strive to operate as environmentally friendly as possible, and it is through voluntary conservation programs that ranchers will continue to be proud partners with the government to reach our environmental conservation goals.”

As Congress begins the process of developing the next Farm Bill, Coffey stressed ‘voluntary’ is the key to making conservation programs work for farmers and ranchers.

“The biggest point I’d like you to take away from this hearing is that the “voluntary” part of the conservation programs is what really makes it work for ranchers,” said Coffey. “If they were to become mandatory, the rules and regulations that farmers and ranchers would be subjected to would make it harder for them to utilize the unique conservation practices that help their individual operations thrive.”



ASA Congratulates Starling on New White House Role

The American Soybean Association (ASA) congratulates Ray Starling, recently named a special assistant to President Donald Trump for agriculture, trade and food assistance. In his new role, Starling will hold a seat on the National Economic Council, where he will advise President Trump on agriculture and trade issues. Previously, Starling served as chief of staff to Sen. Thom Tillis (R-N.C.), as well as an advisor to Tillis on farm issues.

"To have an advocate for agriculture like Ray Starling in this position is very positive for soybean farmers," said ASA Director Jimmy Thomas, a producer from Timberlake, N.C. "In his time with Sen. Tillis, and prior to it with the North Carolina legislature and the state's Department of Agriculture and Consumer Services, Ray has proven himself to be someone who understands the challenges farmers face and what role government can play in helping us to succeed. In his role, he will also be able to draw the direct connection between global agricultural trade and a successful farm economy."

North Carolina Soybean Producers Association President John Fleming, a farmer from Tarboro, N.C., added, “Ray Starling has spent the majority of his career in agricultural policy. He has a deep understanding of the needs of rural America, having grown up on his family’s farm in eastern North Carolina. Ray has demonstrated his commitment to soy growers and we congratulate President Trump on such a strategic hire.”



Land O’Lakes, Inc. Reports Record Earnings Year for 2016

Powered by growth in core businesses and the unification with United Suppliers, Land O’Lakes, Inc. today reported record net earnings for the year ending Dec. 31, 2016.

The company reported a record $320 million in net earnings on $13.2 billion in sales and returned a record $187 million in cash to its member-owners. This compares to net earnings of $304 million and cash to its member-owners of $161 million in 2015.

"We are pleased with another record year, particularly under current market conditions, and appreciate the dedication of our workforce and the support of our farmer owners,” said Land O’Lakes, Inc. President and CEO Chris Policinski. “We attribute our continued strong performance to our ‘marketplace back’ approach to doing business, which is different from the production orientation of many of our competitors. Our strategy is based on deeply understanding what our consumers, customers and farmers need to be successful and developing innovative, value-added products--and increasingly services--to meet those needs. We know that our success depends on their success."

Land O’Lakes, Inc. currently touches 50 percent of the harvested acres and 25 percent of the producers in the nation through its independent retail-owner network and strives to serve as the voice of the farmer for its farmer-owners.

For the fourth quarter ending Dec. 31, 2016, the company reported $3.3 billion in sales, which were even with 2015, and $73 million in net earnings, compared to a record $116 million in the fourth quarter of 2015.

Coming off a record year in 2015, the company also achieved record performance in 2016 with growth in each of its core businesses despite challenging market conditions. The company increased its size and scale of its Crop Inputs and Insights division through acquisitions and the integration of WinField United, accelerated the revitalization of its Animal Nutrition division and continued to grow in Dairy Foods.

Business Segments
Dairy Foods reported 2016 net sales of $3.8 billion compared to $4.0 billion in 2015. Pretax earnings for Dairy Foods totaled $70.1 million in 2016, down from $83.1 million in 2015. The business achieved record branded butter volume, record foodservice volume and strong earnings performance despite the impact of low commodity markets and record milk production in the East.

Against the backdrop of low commodity prices, Crop Inputs and Insights realized growth and scale through the 2015 unification of Winfield and United Suppliers crop protection unit. In its first full year as a combined entity, the company delivered sales of $5.5 billion with pretax earnings of $202.9 million. That compares with $4.8 billion in sales and $189.6 million in pretax earnings in 2015. The full unification with United Suppliers takes place on Oct. 1, 2017, adding Crop Nutrient products to our portfolio, providing our independent retailers a total agronomy solution.

Animal Nutrition reported 2016 net sales of $3.8 billion on pretax earnings of $72.9 million, compared to $4.2 billion in sales and $57.8 million in pretax earnings in 2015. The business experienced growth in all customer channels. The business reinvented itself and launched its Feed Greatness campaign leveraging its many years of industry leading research, delivering a complete solution for animals supporting our Purina brand driving growth and a richer mix of products, including record volume and earnings in its Milk Replacer business.



DuPont Pioneer Unveils All-New Suite of Grower Tools from Encirca Services

DuPont Pioneer is launching its next generation of Encirca services tools as an easy-to-use, web-based dashboard during Commodity Classic 2017 in San Antonio, Texas, March 2-4.

Growers can easily navigate the new set of tools on their own, or they may have expert assistance from an Encirca certified services agent or their local Pioneer sales professional. Either way, through the new suite of tools growers can conceptualize their operational data and use those insights to make and validate critical decisions throughout the growing season.

New analytic capabilities within Encirca services also allow growers to more critically analyze harvest results to understand what happened in their fields during the growing season. With each crop cycle, growers can make more informed decisions to improve productivity and profitability.

“The new Encirca services online platform gives growers a fast, simple, and intuitive way to see their path to success all year long, year after year,” said Eric Boeck, DuPont Pioneer marketing director, Encirca services. “We’re confident that growers who leverage their historical yield data and as-applied operational data with these new tools will see advantages personally and financially.”

Getting started with the tools and insights from Encirca services is easy. The web-based dashboard integrates seamlessly with current Encirca services, which continue to keep growers in control of their operational data and user experience. It pulls together and conceptualizes a grower’s field operations data for monitoring, managing, evaluating and creating variable rate prescriptions for nitrogen, soil fertility and enhanced variable rate seeding.

For example, the new weather explorer tool lets growers compare historical and current weather information across variables like precipitation, high and low temps, and GDUs for all their fields. Similarly, the new yield explorer tool lets them evaluate their operation’s performance and determine which farms and fields are the highest yielding.

“We’re showing growers what their data can and should be doing for their operation,” Boeck said. “Through the Encirca services dashboard, growers can get clearer pictures of their operational performance than they’ve ever had before.”