Wednesday March 15 Ag News

Nebraska Agricultural Land Values Decline an Average of 10% 
Jim Jansen - Agricultural Systems Economics Extension Educator

Preliminary findings from the 2017 Nebraska Farm Real Estate Market Survey conducted by the University of Nebraska–Lincoln indicate that as of February 1, 2017, the weighted average farmland value declined by about 10% over the prior 12-month period to $2,805 per acre. This decline marks the third consecutive year of downward pressure totaling to approximately 15% for the weighted average farmland value in Nebraska. Farmland value peaked in 2014 at $3,315 per acre.

The southeast district saw the largest decline at 15% averaged across all land classes ($4840/acre). The south ($3985/acre) and north ($1180/acre) districts, at 6% and 5% respectively, saw the smallest average declines. Other declines by district, averaged across all land classes, were: southwest (12%, $1720/acre), central (11%, $3360/acre), northeast (10%, $5410/acre), east (9%, $6330/acre), and northwest (8%, $755/acre).

Lower commodity prices in 2016-2017 and concerns about water resources were reported as key pressures on the ag land market and cash rental rates.

Jansen wrote "Survey participants expressed the availability of water for irrigation and policies guiding the utilization of this resource as potentially negative forces in the market value of these two land classes [gravity- and pivot-irrigated] into the future. Technological advancements in the application of irrigation water might be able to enhance the utilization of these resources and offset potential challenges."

Expenses related to owning land, including rising property taxes, were also a major factor reported as influencing rental rates.

Report Highlights
The largest price declines by land classes, on a statewide weighted average, occurred in dryland cropland with irrigation potential at 13%, followed by tillable grazing land at 12%.

Dryland cropland without irrigation potential and nontillable grazing land reported the next highest rate of decline at about 10% across Nebraska, with the sharpest declines noted in the central, southwest, and south districts at about 15%.

For nontillable grazing land the highest rates of decline, ranging from 13% to 18%, were reported for the central, east, and southwest districts.

Center pivot irrigated cropland in the northwest, southwest, and southeast districts dropped 13% to 16%; other districts recorded declines of 5% to 7%.

Gravity irrigated cropland in the northwest and southeast districts followed similar double-digit deteriorations.

Rental Rates
Irrigated cropland rental rates on average declined 5% to 10% across Nebraska. Eastern Nebraska districts along with the southwest district recorded the highest declines, ranging from 9% to 12% for center pivot irrigated cropland.

Pasture and cow-calf pair rental rates fell 5% to 15% across Nebraska.

The preliminary findings from the 2017 Nebraska Farm Real Estate Market Survey reported in the March 15, 2017 Cornhusker Economics, include ag land values and cash rental rates for eight districts in Nebraska plus a weighted state average. The districts, the same ones used by USDA Agricultural Statistics Service, are northwest, north, northeast, central, east, southwest, south, and southeast Nebraska.



Growth Energy CEO to Speak at Ethanol 2017: Emerging Issues Forum

Ethanol and biofuels experts from across the nation will be in Omaha for the annual Ethanol: Emerging Issues Forum April 13-14 at the La Vista Conference Center. Gov. Pete Ricketts will open the event issuing a welcome address to attendees.

Emily Skor, CEO of Growth Energy, is one of the featured speakers April 14. Growth Energy represents producers and supporters of renewable energy, who feed the world and fuel America in ways that achieve energy independence, improve economic wellbeing and create a healthier environment for all Americans.

“The production and use of ethanol generates a variety of economic and public health benefits,” said Todd Sneller, administrator for the Nebraska Ethanol Board. “We are fortunate to have Emily Skor provide an overview of health and environmental benefits that accrue by using ethanol-blended fuels.”

The Metropolitan Area Planning Agency will soon roll out an array of ground-level ozone mitigation steps that can help the Omaha Metro area combat pollution challenges in 2017. Skor will highlight consumers’ role in reducing pollution when they select ethanol fuels at the pump, Sneller noted.

“Ethanol will play an increasingly important part in reducing the toxicity of gasoline,” he said. “By replacing some of the most dangerous chemicals in gasoline with ethanol, we can reduce adverse health and environmental risks.”

Skor joined Growth Energy in May 2016 as the CEO of the organization. Prior to Growth Energy, she served as the vice president of communications of the Consumer Healthcare Products Association (CHPA) and the executive director of the CHPA Educational Foundation. For more than a decade, she helped Fortune 500 companies and industry associations manage issues affecting brand confidence and corporate reputation through media, advocacy, coalition building and consumer education campaigns.

Wrapping up the final day of the conference, Skor will present at 11:30 a.m. April 14.

The two-day forum, which is in its 12th year, is arranged for ethanol producers and others integrally involved in production, technology, policymaking and marketing of ethanol and its co-products. The forum runs from noon to 5:30 p.m. Thursday and 8 a.m. to noon Friday.

Other topics during the forum include ethanol marketing challenges; trade policy and its impact on ethanol and DDG exports; emerging trends in ethanol co-products; octane and higher ethanol blends; and integrating technology for efficiency, profitability and sustainability.

More than 130 ethanol industry leaders are expected to be in attendance. Online registration and a detailed agenda are available at www.ethanol.nebraska.gov. Registration is open until 5 p.m. April 12. Scholarships also are available to college and university students and can be accessed online.

The Ethanol 2017: Emerging Issues Forum is presented by the Nebraska Ethanol Board, Clean Fuels Development Coalition, American Coalition for Ethanol and the Nebraska Ethanol Industry Coalition.



PREVENT GRASS TETANY
Bruce Anderson, NE Extension Forage Specialist

               Fall-planted rye, triticale, and wheat as well as spring pastures soon should be ready to graze.  These fields can give great grazing, but be sure you take steps to avoid problems with grass tetany.

               Grass tetany is caused by low blood magnesium. Low blood magnesium can be due to low levels of magnesium in lush spring grass, but it also is caused by mineral imbalances like high potassium and nitrogen or low calcium in the diet.

               Grass tetany primarily affects older, heavy milking cows or sheep, but young stock also can be affected.  It occurs most frequently in spring during cool, cloudy, moist conditions when lush, immature grass starts growing rapidly.

               Animals affected by tetany often graze away from the herd, are irritable, show muscle twitching, awkwardness, and staggering, and they are somewhat wide-eyed and staring.  When affected severely, the animal will collapse, thrash around, throw its head back, maybe lapse into a coma, and possibly die.

               To prevent grass tetany, first wait to graze until grass is more than 6 inches tall.  Also, feed or graze legumes like clover or alfalfa when you start on pasture since they have high magnesium levels.

               Feeding about 10 to 20 grams per day of supplemental magnesium via commercial or home-made salt-mineral mixes may be the best way to reduce tetany problems, but start supplementing as much as thirty days before grazing begins.  Magnesium oxide is one of the best and cheapest sources of magnesium.  Mix equal parts of magnesium oxide with dical, salt, and ground corn for a simple home-made supplement that provides adequate magnesium when each cow eats about one pound of the mix per week.

               As always, an ounce of prevention is worth a pound of cure.



Kansas State University study counters common beliefs about marbling texture in steaks

A Kansas State University study has found the marbling texture of steak makes no difference to consumers in appearance and taste of the food.

The marbling texture of meat is based on the amount of white, visible flecks of fat within meat.

Meat scientist Travis O'Quinn said the finding was surprising and that it countered previous beliefs that consumers preferred finely marbled meat, which has smaller specks but the same amount of fat, for tenderness and overall taste.

"Marbling texture had no impact on the consumer's perception of beef, not only from a visual standpoint but when they ate it as well," O'Quinn said.

The finding is significant because approximately 80 percent of the more than 100 branded beef programs available to consumers do not accept coarsely marbled beef.

"Typically, coarse marbled beef is discounted or there is a prejudice against coarse marbled beef," O'Quinn said. "By coarse marbling, I mean the flecks of fat within the ribeye are larger. The pieces of fat are actually bigger in coarse marbled beef, though there is no difference in the total amount of fat in the steak."

This is the first scientific study to look at the impact of coarse marbling on a consumer's willingness to buy the product, according to O'Quinn.

"It's amazing to me when we talk about marbling texture and what is commonly held to be true in terms of fine marbling being better, that there hadn't been any other studies to evaluate this," O'Quinn said. "This was the task that we wanted to take up."

The university's study evaluated steaks that fell into three marbling categories — coarse, medium and fine — in three quality grades — top choice, low choice and select — for a total of nine steak treatments.

Each of the samples were tested by a consumer panel and a trained sensory panel, which were asked to evaluate the steaks for tenderness, juiciness and how much beef flavor was present. The consumers also were asked how much they liked the steak overall.

"Our goal was to create a very robust study evaluating this marbling texture and identifying any differences that may be present," O'Quinn said. "Our results showed that when we fed consumers the beef, they found no difference among the different marbling texture groups. They did find differences between choice and select, which we expected; they told us the choice was more tender, more flavorful and they liked it better overall."

The trained sensory panels did indicate that coarse marbled steaks were more juicy and flavorful than fine and medium marbled steaks, a finding that differed from the consumer panels.

In another part of the study, consumers completed an online study in which they viewed pictures of the steaks with differing levels of marbling. O'Quinn said the consumers were asked to judge how desirable the steak was and their willingness to purchase the steak, based solely on pictures.

"The results were the same," he said. "The consumers showed no preference for one marbling texture over another."

The data will become part of industry knowledge that could affect how branded beef programs are managed in the future.

"If consumers aren't willing to pay more for fine- or medium-texture beef, and they don't taste the difference, then there's really no reason to discriminate against those coarse marbled steaks," O'Quinn said. "If you're going to create a new branded beef program in the future, maybe you won't include marbling texture as part of your program's specifications."



Fertilizer Prices Still Increasing

Fertilizer prices were still on the rise the first week of March 2017, according to fertilizer retailers surveyed by DTN. This marks the seventh consecutive week prices have moved higher.

For the third week in a row, all eight major fertilizers were higher compared to a month earlier, though none were up by a significant amount. This is the second consecutive week prices saw only slight increases.

DAP had an average price of $436 per ton, MAP $460/ton, potash $336/ton and urea $361/ton. 10-34-0 had an average price of $441/ton, anhydrous $503/ton, UAN28 $246/ton and UAN32 $279/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.31/lb.N, UAN28 $0.44/lb.N and UAN32 $0.44/lb.N.

Retail fertilizers are lower compared to a year earlier. Only three of the eight major fertilizer are double digits lower.

10-34-0 is 22% lower from a year ago, UAN32 is 11% less expensive and potash is 10% less expensive. DAP is 9% less expensive, both MAP and anhydrous is 7% lower, UAN28 is 6% less expensive and urea is 5% compared to year earlier.



Trump reinstates review of GHG, fuel economy standards

The American Coalition for Ethanol (ACE) supports President Donald Trump’s decision today to direct the Environmental Protection Agency to reconsider the final determination of greenhouse gas standards (GHG) for model year (MY) 2022-2025 light-duty vehicles and, in harmony with the Department of Transportation’s National Highway Traffic Safety Administration, to reinstate the midterm evaluation of the GHG and corporate average fuel economy (CAFE) standards for cars and light trucks for MY 2022-2025.

“Today’s action does not roll back the CAFE-GHG standards but rather directs EPA to put the midterm review of the standards back on track,” said Brian Jennings, ACE executive vice president. “This is good news because reconsideration of the 2022-2025 standards will enable us to emphasize the need for EPA to allow high-octane, high-ethanol blends to be used in meeting future efficiency standards.”

President Trump met with auto executives and workers in Ypsilanti, Michigan, today where he announced he’s directing the EPA to put the midterm review back on the original schedule and make a new final determination by April 2018. The Federal Register Notice signed by DOT Secretary Elaine Chao and EPA Administrator Scott Pruitt is available here.

In November, EPA issued a proposed determination on the appropriateness of the MY 2022-2025 standards. ACE submitted comments to EPA in December on this topic, available here. Shortly after in January, the Obama administration issued a final determination, 14 months ahead of schedule, that those late-term standards remain feasible and should be kept as is. Trump has directed EPA to revisit the final determination to allow additional consultation with the public, NHTSA and the California Air Resources Board.

 “Now that the review of MY 2022-2025 standards will return to the original schedule, we will also be able to make the case that EPA and NHTSA need to provide meaningful incentives for flexible fuel vehicles (FFVs) and engines designed to operate most efficiently on high-octane, high-ethanol blends,” Jennings said.  “Currently, the standards are biased in favor of electric vehicles and ignore the role that FFVs and engines optimized to run on blends in the range of E25-40 can play in meeting fuel economy and GHG reduction goals.”

ACE has been in dialogue with automakers, agricultural organizations, government researchers and many others to develop strategies and action plans to accelerate the transition of North American transportation fuels to low-cost, fuel-efficient, high-octane biofuels such as ethanol, to which CAFE-GHG standards present a natural and timely opportunity for this transition to occur. ACE recommends increasing the minimum market gasoline octane rating, commensurate with increased use of ethanol. ACE also believes FFVs should be encouraged by credits and can play a role as a bridge to new engine technologies dedicated to run on higher octane, higher level ethanol blends. 



Sonny Perdue Confirmation Hearings a Step Closer to Happening

Donald Trump's nominee to head the U.S. Agriculture Department said in Senate ethics disclosure forms that he would place his assets, which include part ownership of a grain merchandising company, into a blind trust.

Republican Sonny Perdue was tapped to head the department the day before Trump's inauguration. Progress on his confirmation has been slow, with media reports suggesting that undoing his various business entanglements caused the delay in the ethics filings, reports Reuters.

The divestiture plan was disclosed in filings posted online over the weekend by the U.S. Office of Government Ethics. Submitting the ethics filings is a key step toward possible confirmation.

Perdue, the former governor of Georgia, also said he would resign his positions from the National Grain and Feed Association, the Bipartisan Policy Center Governor's Council and the Georgia Agribusiness Council.

The Senate Agriculture Committee has not yet released a schedule for his confirmation hearings.



AFBF Econ Team Delivers March 2017 Crop Market Update

In his latest crop market report—Cropland Area and Production Projected Lower, Prices Higher in 2017—AFBF economist John Newton says USDA experts late last month indicated total cropland area for the eight principal crops was projected at 249.8 million acres, down 1.4 percent from 2016.

If realized this would be the lowest planted area since 2011 when 249 million acres were planted to the eight crops, including corn, soybeans, wheat, barley, sorghum, oats, rice and cotton.

USDA believes that in addition to fewer acres being planted, projected crop yields will also decline from last year—a combo that compelled USDA to reduce its production expectations for many crops in 2017. 

In the report, Newton also addresses the spring price discovery and its implications for crop insurance policies and projections for acreage changes in corn and soybeans for the upcoming year.

Download the full March 2017 Crop Market Update here...  http://www.fb.org/files/Crop_Market_Update-March_2017.pdf. 



Farmers, Ranchers Ask Congress to Strengthen Safety Net

The American Farm Bureau Federation and 11 other farm and ranch groups today asked congressional budget and appropriations committees to increase funding for farm programs in the 2018 farm bill.

The coalition underlined in a letter the need for a strong farm safety net in the face of financial hardship not seen for decades.

“While we do not yet have a full-fledged financial crisis in rural America, a good many farmers and ranchers are not going to be able to cash-flow in 2017,” the groups wrote. “With USDA projecting continued low prices in 2018 and beyond, this situation threatens to quickly and vastly expand with each and every crop year.”

The advocates also applauded the House Agriculture Committee for drawing attention to the severe economic downturn facing rural America. Net farm income has dropped 50 percent in the last four years—the largest four-year percentage decrease since the Great Depression.

With no relief in sight, many farmers and ranchers are burning through capital reserves, and beginning farmers may be forced out of business altogether without reserves from good years to carry them through. Banks and other community lenders are finding their hands are tied as well. Without a strong safety net, farmers are unable to secure the loans they need to help with operating costs to keep their businesses running.

Farmers also face the challenges of a strong American dollar as other countries heavily subsidize and protect their producers.

“U.S. farmers have long said they were willing to compete with farmers elsewhere on a level playing field, but they cannot compete with the treasuries of foreign governments,” the groups wrote.

The 2018 Farm Bill presents a prime opportunity for Congress to respond to these sharp declines in farm prices and farm income. In previous years, agriculture was the only industry to take voluntary cutbacks to help reduce the federal deficit.

“Now we look to Congress to provide the resources necessary to help America’s farmers and ranchers through this very difficult period,” the groups wrote.



Thousands “Farmer Up!” at 2017 Commodity Classic in San Antonio

In spite of challenging times in the farm economy, thousands of growers and agricultural advocates opted to “Farmer Up!” and attend the 2017 Commodity Classic March 2-4 in San Antonio, Texas, in huge numbers.

“Commodity Classic continued in its tradition of excellence this year, demonstrating the enthusiasm America’s farmers have for continuous learning and improvement,” said Commodity Classic Co-Chair Kevin Ross, an Iowa farmer.  “From the exhibit halls to the learning sessions, the men and women who attended generated an electric energy sparked by their passion for agriculture.”

Total attendance was 9,303, the second-largest total in event history, second only to the 2016 Commodity Classic in New Orleans.  Growers represented 4,102 of that total.  Among the throng were 920 attendees who were enjoying Commodity Classic for the very first time. 

The trade show featured 425 participating companies, including 83 first-time exhibitors.  These exhibitors filled 2,266 booth spaces and represented a wide range of technology, innovation, equipment, products and services.

Educational sessions were also a huge draw, with many sessions enjoying standing-room-only audiences.  “Education is a hallmark of Commodity Classic and this year’s line-up was no exception,” said Ed Erickson, Jr., a North Dakota farmer and Commodity Classic Co-Chair.  “Farmers are continually seeking information, ideas and innovation that can give them an edge—and Commodity Classic is the place to find it.”

The General Session featured remarks from U.S. Congressman Mike Conaway of Texas, chairman of the House Committee on Agriculture, and inspirational speaker John O’Leary.

Country music star Pat Green performed during the Evening of Entertainment on Saturday.

The 23rd annual Commodity Classic will take place February 27-March 1, 2018, in Anaheim, California.  Established in 1996, Commodity Classic is America’s largest farmer-led, farmer-focused convention and trade show, produced by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers, National Sorghum Producers and the Association of Equipment Manufacturers.

For more information and to sign up for email updates, visit www.CommodityClassic.com.



Ag Groups Conduct ‘Substantive, Productive’ Meeting with Trump Administration on Trade

Executive staff leaders from 11 major U.S. agricultural and agribusiness organizations commended the Trump administration for engaging in a substantive and productive meeting today focused on the importance of continued growth of food and agriculture exports.

The meeting followed a series of written communications to the Trump administration from the broad-based U.S. Food and Agriculture Dialogue for Trade, as well as a number of the individual organizations, stressing the importance of agricultural trade.  Those communications also have expressed an eagerness on behalf of the food and agriculture sector to work actively and constructively with the administration in preserving the major benefits of the North American Free Trade Agreement to the sector while seeking further improvements to modernize the 23-year-old accord, as well as to reinvigorate trade negotiations with important U.S. agricultural trading partners in the Asia-Pacific region.

National Economic Council Director Gary Cohn participated in the meeting with representatives from the American Farm Bureau Federation, American Soybean Association, Corn Refiners Association, National Association of Wheat Growers, National Corn Growers Association, National Cotton Council, National Grain and Feed Association, National Oilseed Processors Association, North American Export Grain Association, Southern Peanut Farmers Federation and USA Rice.

“It is clear from this meeting and other interactions that the Trump administration understands and intends to pursue expansion of U.S. food and agriculture exports which contribute to U.S. manufacturing, job creation and economic growth,” the groups said following the meeting.  “We are committed to offering substantive proposals and ideas, and look forward to further opportunities to work with the administration and its trade team as they develop specific strategies for engaging in trade negotiations with our most important trading partners.  We are pleased that we received assurances from the Trump team that it will take us up on that offer.”

During the meeting, the agricultural organizations noted that 95 percent of their potential customers live beyond the U.S. border, and that the diverse food and agriculture sector supports more than 15 million U.S. jobs, creates more than $423 billion in annual U.S. economic activity, and is the single largest U.S. manufacturing sector, representing 12 percent of all U.S. manufacturing jobs.



U.S. Dairy Leaders Promise Steadfast Commitment to Mexico

The leaders of three major U.S. dairy organizations Wednesday promised to continue a strong commitment to their time-tested partnership with Mexico’s dairy industry and consumers.

“We have always seen Mexico as a partner first and a customer second,” U.S. Dairy Export Council (USDEC) President and CEO Tom Vilsack told Mexican dairy leaders attending the National Dairy Forum in Mexico City. “That’s why we intend to continue working with you and your industry to expand the consumption of dairy products in a way that benefits both countries.”

“Mexico is our friend, ally and most important trading partner,” said Jim Mulhern, President and CEO of the National Milk Producers Federation. “Our goal this week in visiting Mexico is to communicate our steadfast commitment to our partnership with the Mexican industry, even as we continue to explore ways to deepen that relationship by working on issues of mutual benefit.”

“The United States proudly provides the majority of imported dairy products to Mexican consumers,” said Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association, which represents dairy food companies and their suppliers. “We strongly believe that it’s in the best interest of both countries to preserve and enhance our excellent trade relationship, now and in the future.”

Vilsack and Mulhern spoke at the Femeleche conference here, which brought together Mexican dairy industry leaders, farmers and government officials. As part of the coordinated message of collaboration and partnership with Mexico, the three CEOs of the leading U.S. dairy policy organizations are also meeting with a variety of government officials, including the Mexican Minister of Agriculture and the U.S. Ambassador to Mexico.

The reassurance from U.S. dairy leaders comes during a time of political uncertainty on both sides of the border.

Since NAFTA became law in 1994, U.S. dairy exports to Mexico have more than quadrupled to $1.2 billion. That makes Mexico the U.S. dairy industry’s No. 1 export market, accounting for nearly one-fourth of all U.S. dairy exports last year.

Put another way, exports to Mexico require the milk of 345,000 American cows. They create approximately 30,000 U.S. jobs, according to USDA, and $3.6 billion in U.S. economic impact.