Tuesday Aprill 25 Ag News

Corn, Soybean Planting Considerations for this Week’s Cold Snap
Greg Kruger - Nebraska Extension Cropping Systems Specialist
Keith Glewen - NE Extension Educator

With this week’s forecasted low temperatures projected to dip into the high 30s (°F) with potential rain events, growers have asked if/how germination will be affected for corn and soybean planted this week.

Summary
Imbibitional (fast) water uptake occurs within the first 48 hours after a seed is planted. Once planted, corn seeds need a two-day (48-hour) window and soybeans need at least a 24-hour window when the soil temperature at planting depth does not drop much below 50°F.  When the soil temperature drops much lower than 50°F within that time frame, there is potential for chilling injury to affect seed germination and seedling growth. Soil temperature decreases after this time are less likely to affect seed germination. 

Key Considerations
Check the weather forecast and soil temperatures for your area. It's also important to check the soil temperature of each field the morning you intend to plant. (This can be done with a meat thermometer.)

Second, check on your seed tag or with your seed dealer regarding the cold tolerance of your corn hybrids/soybean varieties. Hybrids and varieties vary in cold tolerance and company rating scales differ. However, be aware that imbibitional chilling is a physical phenomenon that can override genetics.

Cold Stress in Corn
When corn seeds imbibe (take up) water, cell membranes stretch and cells expand. When a damaged cell membrane rehydrates, it may not return to its normal shape and size. This can create a "leaky" cell. Water is at its densest at about 39°F so when cold water is imbibed, it may result in additional membrane damage. These ruptured membranes may occur in the cell walls and in the mitochondria. In the plant this action may disrupt the embryo/endosperm enzymatic conversion to energy, but mostly results in leakage of cell solutes and sugars. This, in turn, is likely to reduce growth rate and interfere with growth of the emerging seedling.
-    Debate exists about what specific temperature and timing causes imbibitional chilling.  However, corn plants that imbibe cold water (in the low 40s) in the first 48 hours after planting undoubtedly are affected.
-    Planting when soil temperatures are above 50°F alleviates concerns of imbibitional chilling affecting corn emergence. Some scientists suggest that corn will not be injured at soil temperatures as low as 41°F; however, there is certainly some risk of injury from imbibitional chilling at those low temperatures.
-    For best results, begin planting corn when soil temperatures are in the high 40s and the short-term forecast calls for warm days that will continue pushing soil temperatures higher. If soil temperatures are in the high 40s and the weather forecast calls for cold wet conditions within the next 48 hours, soil temperatures will likely drop and planting should be delayed until temperatures warm.

Cold Stress in Soybean
Soybean germination consists first of a very fast uptake of water (imbibitional phase) followed by a much slower uptake of water (osmotic phase). Chilling during the first phase can cause severe problems because the imbibed water is needed to rehydrate the cotyledons and embryo to the point that cell membranes become functional. Cold temperatures interfere with proper hydration of those membranes.
-    The imbibitional phase is typically not very long (usually less than 24 hours) and can occur with relatively little soil moisture since the seed is dry at planting. Thus, getting a cold rain within 24 hours after planting can lead to soybean chilling injury and thus lower stands.
-    Chilling injury is likely greater if soil temperatures were cold (less than 50° F) at planting rather than becoming cold 24 or more hours after sowing. Chilling injury occurs with temperatures of less than 50°F within 24 hours of planting; germination failure and seedling death occur at soil temperatures around 40°F. The longer the seed is in the ground at warm soil temperatures before cold temperatures occur, the less chance there is for chilling injury.
-    Saturated soil with cold temperatures significantly reduces germination rate, thus fungicide seed treatments are recommended if planting in April or early May.
-    Bottom line: Plant your soybeans if you think the soil temperatures won't get cold (less than 50°F) for at least 24 hours. If you planted two or more days before the cold rain, there should be no imbibitional injury due to cold temperature.

During the second phase of germination, the fully functional membranes (after imbibitional hydration) create an osmotic situation in which water diffuses into the living cells. Osmotic water uptake is slow with cold temperatures. Chilling during this phase causes little direct injury to the germinating seedling. Cold temperatures will, however, slow emergence.

In conclusion, check the weather forecast, soil temperature, and hybrid/variety cold tolerance before planting.  The first 24- and 48-hour periods are critical for soybean and corn, respectively, if soil temperatures dip much below 50°F.  Monitor your fields based on planting date throughout the year to determine any affects on plant stand and yield.



HARVESTING SUNLIGHT
Bruce Anderson, NE Extension Forage Specialist

               Free for the taking.  Free lunch.  Absolutely no cost.  Something for nothing.  Don’t you love it when you can get something for free?

               Input costs keep rising.  Seed, fertilizer, pesticides, fuel, hay, supplements, trucking – everything seems to get more expensive.  But miraculously, the most important input is still free.  The input I’m talking about is sunlight.

               Grassland managers need to capitalize on free sunlight to be profitable.  That’s especially important after receiving some good rain.  With good moisture and the return of warm temperatures, pastures and rangeland are poised to grow rapidly.

               Just because sunlight is free, though, don’t take it for granted.  What we should take is advantage of as much free sunlight as possible.  As we capture more solar energy, our grazinglands become more productive and our livestock more profitable.

               The only way to capture solar energy is with healthy, green leaves.  The more land area completely covered by green leaves, the more sunlight that’s captured and converted into more grazable forage.

               This season, as you check your livestock and pastures, don’t just look over the pastures.  Also look down.  How much bare ground do you see?  How much dead litter or brown, dying leaves?  How much healthy, green leaf area?  The more green, the better.

               Improving the amount of green leaves capturing sunlight begins with proper stocking rate.  Once that’s accomplished, avoid grazing too short.  Move animals to new pastures while you still have lots of green leaves remaining to capture sunlight.

               Then your plants will capture more sunlight, regrow more rapidly, and produce more forage for your animals to graze later on.



Sasse to New Agriculture Secretary: "Be a Champion for Free Trade"

Today, shortly after Sonny Perdue was sworn in as the U.S. Agriculture Secretary, U.S. Senator Ben Sasse invited the new secretary to Nebraska and urged him to "be a champion for free trade" inside the administration.

"As you assume your new position in the Administration, I call on you to be a champion for free trade," wrote Sasse. "Your leadership on these important issues is vital now more than ever because the Administration has provided little certainty that they understand the importance of free trade policy and its many benefits for America’s farmers, ranchers, and small businesses. Specifically, I call on you to prioritize the following critical areas: 1) Advocate for free trade policies in any consideration of the North American Free Trade Agreement; 2) Advocate for U.S. leadership in the Pacific markets post Trans-Pacific Partnership; 3) Prioritize bilateral trade deals; and 4) Expand market access and make America more competitive."

Earlier this year, Sasse convened a meeting between Perdue and Nebraska agriculture leaders, including Nebraska Farm Bureau President Steve Nelson, Nebraska Cattlemen President Troy Stowater, and Nebraska Sugarbeet Growers President Kendall Busch.

The full text of today's letter is found below.....

Dear Secretary Perdue:

Congratulations on your confirmation to serve as the Secretary of the U.S. Department of Agriculture (USDA). I supported your nomination in substantial part because of your commitment to me to advocate for the expansion of agricultural export markets and defend free trade policy.

As you assume your new position in the Administration, I call on you to be a champion for free trade. Your leadership on these important issues is vital now more than ever because the Administration has provided little certainty that they understand the importance of free trade policy and its many benefits for America’s farmers, ranchers, and small businesses. Specifically, I call on you to prioritize the following critical areas: 1) Advocate for free trade policies in any consideration of the North American Free Trade Agreement; 2) Advocate for U.S. leadership in the Pacific markets post Trans-Pacific Partnership; 3) Prioritize bilateral trade deals; and 4) Expand market access and make America more competitive.

1. Advocate for Free Trade Policies in Any Consideration of the North American Free Trade Agreement (NAFTA): Any negotiations regarding NAFTA should aim to improve and preserve the agreement and highlight the historic value of Canada and Mexico as our trading partners for American agriculture.

2. Advocate for U.S. Leadership in the Pacific Markets Post Trans-Pacific Partnership (TPP): Following the Administration’s January 2017 TPP withdrawal, U.S. leadership in the Pacific markets is vital to advancing U.S. interests in the region.

3. Prioritize Bilateral Trade Deals: The Administration should prioritize immediate trade negotiations (bilateral or multilateral) with key trading partners and allies. This not only includes Japan and the United Kingdom, but other TPP signatories.

4. Expand Market Access and Make America More Competitive: Because no one benefits from a trade war and unfair trade practices, it is imperative to seek the continual breakdown of trade barriers so that the free movement of goods can take place.

I request that you periodically update me on your efforts to advocate for free trade policies in the Administration as well as your efforts to expand American agricultural exports abroad.

Finally, please accept my invitation to visit the state of Nebraska. Our farmers and ranchers would welcome the opportunity to meet with you and share the unique opportunities and challenges that they face as they make Nebraska the breadbasket of the world.

I look forward to working with you as we work together to build trade networks around the globe and support America’s agriculture community as they feed a growing world. I pledge to fully support you in these efforts to strongly and tenaciously advocate for American agriculture and the expansion of our exports markets.

Thank you again for your willingness to serve as Secretary of Agriculture and congratulations on your confirmation.

Sincerely
Ben Sasse



Sonny Perdue Sworn in as 31st U.S. Secretary of Agriculture

Sonny Perdue was sworn in as the 31st U.S. Secretary of Agriculture by fellow Georgian and Associate Justice of the U.S. Supreme Court Clarence Thomas in a brief ceremony today at the Supreme Court building.  The U.S. Senate confirmed Secretary Perdue by a vote of 87-to-11 on Monday evening.  After Secretary Perdue took the oath of office, he addressed employees at the U.S. Department of Agriculture (USDA) before getting to work on his first day.  Also this morning, USDA launched his official Twitter handle: @SecretarySonny.

“The only legacy that I seek is the only one that any grandparent or parent seeks – to be good stewards, and to hand off our nation, our home, our fields, our forests, and our farms to the next generation in better shape than we found it,” Perdue said.  “Making sure that Americans who make their livelihoods in the agriculture industry have the ability to thrive will be one of my top priorities. I am committed to serving the customers of USDA, and I will be an unapologetic advocate for American agriculture.”

Perdue’s policies as U.S. Secretary of Agriculture will be guided by four principles which will inform his decisions.  First, he will maximize the ability of the men and women of America’s agriculture and agribusiness sector to create jobs, to produce and sell the foods and fiber that feed and clothe the world, and to reap the earned reward of their labor. It should be the aim of the American government to remove every obstacle and give farmers, ranchers, and producers every opportunity to prosper.  Second, he will prioritize customer service every day for American taxpayers and consumers.  They will expect, and have every right to demand, that their government conduct the people’s business efficiently, effectively, and with the utmost integrity.  Third, as Americans expect a safe and secure food supply, USDA will continue to serve in the critical role of ensuring the food we put on the table to feed our families meets the strict safety standards we’ve established.  Food security is a key component of national security, because hunger and peace do not long coexist.  And fourth, Perdue will always remember that America’s agricultural bounty comes directly from the land.  And today, those land resources sustain more than 320 million Americans and countless millions more around the globe.  Perdue’s father’s words still ring true: We’re all stewards of the land, owned or rented, and our responsibility is to leave it better than we found it.

“As secretary, I will champion the concerns of farmers, ranchers, foresters, and producers, and will work tirelessly to solve the issues facing our farm families,” Perdue said.  “I am proud to have been given this opportunity and look forward to rolling up my sleeves and getting to work as we continue to move the USDA and our nation forward.”

Upon nominating Secretary Perdue in January, President Donald J. Trump said, “Sonny Perdue is going to accomplish great things as Secretary of Agriculture. From growing up on a farm to being governor of a big agriculture state, he has spent his whole life understanding and solving the challenges our farmers face, and he is going to deliver big results for all Americans who earn their living off the land.”

About Secretary Perdue:
Sonny Perdue came by his knowledge of agriculture the old fashioned way: he was born into a farming family in Bonaire, Georgia.  From childhood, and through his life in business and elected office, Perdue has experienced the industry from every possible perspective.  Uniquely qualified as a former farmer, agribusinessman, veterinarian, state legislator, and governor of Georgia, he became the 31st United States Secretary of Agriculture on April 25, 2017.

Additionally, Perdue recognizes that American agriculture needs a strong advocate to promote its interests to international markets.  The United States is blessed to be able to produce more than its citizens can consume, which implies that we should sell the bounty around the world.  The relationship between the USDA and its trade representatives, as well as with the U.S. Trade Representative and Department of Commerce, will be vital.  The work of promoting American agricultural products to other countries will begin with those relationships and will benefit us domestically, just as it will fulfill the moral imperative of helping to feed the world.  Perdue has pledged to be an unapologetic advocate for American agriculture.

Under Secretary Perdue, the USDA will always be facts-based and data-driven, with a decision-making mindset that is customer-focused.  He will seek solutions to problems and not lament that the department might be faced with difficult challenges.

As a youngster growing up on a dairy and diversified row crop farm in rural Georgia, Perdue never fully realized that the blessings of purposeful, meaningful work would serve him as well as they have in life. When he was a young boy feeding the calves and plowing the fields, he was an integral part of the workforce on his father’s farm.  As the son of a mother who was an English teacher for 42 years, he benefitted from her teachings as well – not just by instilling in him the beliefs he still holds dear, but also by lending him an appreciation and respect for language and proper grammar.  But more than anything in his life, it was the family farm which shaped Sonny Perdue.  He has lived and breathed the exhilaration of a great crop and the despair and devastation of a drought.  He learned by experience what his father told him as a child, “If you take care of the land, the land will take care of you.”

The work ethic cemented in him by his farming roots has remained with Sonny Perdue throughout his life.  As a younger man, he served his country in the U.S. Air Force, rising to the rank of Captain.  After earning a Doctor of Veterinary Medicine from the University of Georgia, he put that training to use in private practice in North Carolina.  As a member of the Georgia State Senate for eleven years, he eventually ascended to the position of President Pro Tempore as elected by his senate colleagues.  As a two-term governor of Georgia, he was credited with transforming a budget deficit into a surplus, dramatically increasing the student performance in public schools, and fostering an economic environment that allowed employers to flourish and manufacturers and agricultural producers to achieve record levels of exports.  He followed these accomplishments with a successful career in agribusiness, where he focused on commodities and transportation in enterprises that have spanned the southeastern United States. These experiences have proven invaluable in his current role as principal advocate for American agriculture and all that it serves.

Perdue is a strong believer in good government, in that it should operate efficiently and serve the needs of its customers: the people of the United States.  As a state senator, he was recognized as a leading authority on issues including energy and utilities, agriculture, transportation, emerging technologies and economic development, and for his ability to grasp the nuances of complex problems.  As governor, he reformed state budget priorities, helped Georgians create more than 200,000 new jobs, and promoted his home state around the world to attract new businesses.  In 2009, the Reason Foundation’s Innovators in Action magazine recognized Perdue as a leader who “aggressively pursued new strategies to increase the effectiveness and efficiency of government and deliver better value at less cost to taxpayers.”  In addition, he was named “Public Official of the Year” in October 2010 by Governing Magazine.  To this day, his thoughts are never very far from the wishes of the citizens – the true owners of the government.

Perdue’s views on agriculture have always been shaped by his first-hand knowledge of all of its aspects, both as a farmer and as an agribusinessman.  He appreciates the daily concerns and needs of American farmers, while also understanding the intricacies of global commodities markets.  He is acknowledged as a national leader in agriculture, having served as a board member for the National Grain & Feed Association, and as President of both the Georgia Feed and Grain Association and the Southeastern Feed and Grain Association. Perdue has long-standing, close relationships with the leadership of the National Farm Bureau and has been recognized by the Georgia 4-H and FFA programs, among others, for his leadership in agriculture.

As the product of Georgia, a state where agriculture is the leading economic driver, Perdue recognizes that agriculture is an issue and industry which cuts across political party boundaries.  He recognizes that the size, scope, and diversity of America’s agricultural sector requires reaching across the aisle so that partisanship doesn’t get in the way of good solutions for American farmers, ranchers, and consumers.

Perdue has been married to Mary Ruff Perdue for 44 years and has four adult children and fourteen grandchildren.  He and his wife have served as foster parents for eight children awaiting adoption.  Perdue remains a licensed airplane and helicopter pilot and avid outdoor sportsman.



Perdue Joins White House “Farmers Roundtable” as President Trump Issues Executive Order on Agriculture
U.S. Secretary of Agriculture Sonny Perdue today joined President Trump for a “Farmers Roundtable” at the White House to address issues facing the American agriculture community, as the president signed an Executive Order establishing an Interagency Task Force on Agriculture and Rural Prosperity.  The roundtable discussion allowed representatives from all corners of American agriculture to raise concerns and share ideas, just as the task force begins its mission “to promote economic development and revitalization, job growth, infrastructure, innovation, and quality of life issues for rural America,” according to the president’s order.  The session capped a busy first day in office for Perdue, who was sworn in by Associate Justice of the Supreme Court Clarence Thomas as the 31st U.S. Secretary of Agriculture before greeting employees at the U.S. Department of Agriculture (USDA) and travelling to the White House for the roundtable.

“The people who are on the front lines of American agriculture don’t have the luxury of waiting to tend to their crops and livestock, so there was no better time to convene this meeting of the minds than on my first day,” Perdue said.  “President Trump has made it clear that addressing the needs of rural America will be a top priority, and the message that we want to send to the agriculture community is that we are here, we are working hard, and we are on their side.”

Farmers Roundtable
The Farmers Roundtable featured more than a dozen farmers and representatives of the agriculture community who discussed with President Trump and Secretary Perdue a variety of topics, including agricultural trade, regulatory reform, rural investment and infrastructure, labor issues, and the Farm Bill.  Participants in the roundtable included:
• Lisa Johnson-Billy, farmer and former Oklahoma House member, Lindsay, OK
• Luke Brubaker, Brubaker Farms, Mount Joy, PA
• Hank Choate, Choate’s Belly Acres, Cement City, MI
• Tom Demaline, Willoway Nurseries, Avon, OH
• Zippy Duval, President of American Farm Bureau Federation and a farmer from Greensboro, GA
• Valerie Early, National FFA Central Region Vice President and former 4-H member, Wykoff, MN
• Lynetta Usher Griner, Usher Land and Timber, Inc., Fanning Springs, FL (also farms in the state of KS)
• A.G. Kawamura, Orange County Produce, Newport Beach, CA
• James Lamb, Lamb Farms and Prestage Farms, Clinton, NC
• Bill Northey, Iowa Secretary of Agriculture and farmer, Spirit Lake, IA
• Jose Rojas, VP of Farm Operations for Hormel, Colorado Springs, CO
• Terry Swanson, Swanson Farms, Walsh, CO
• Maureen Torrey, Torrey Farms, Elba, NY
• Steve Troxler, NC Commissioner of Agriculture and farmer, Browns Summit, NC

“The Farmers Roundtable provided the chance for the President to hear directly from the people on the front lines of American agriculture about what they are dealing with every day,” Secretary Perdue said.  “By hosting this discussion, the president has demonstrated his awareness of the plight of American farmers, ranchers, foresters, and producers, his intention to seek input, and his determination to help.”

President Trump’s Executive Order
President Trump’s Executive Order established the Interagency Task Force on Agriculture and Rural Prosperity “to ensure the informed exercise of regulatory authority that impacts agriculture and rural communities.”  As Secretary of Agriculture, Perdue will serve as the task force’s chairman.

“It is in the national interest to promote American agriculture while protecting and supporting the rural communities where food, forestry, fiber, and renewable fuels are grown,” the text of the Executive Order reads.  “It is further in the national interest to ensure that regulatory burdens do not unnecessarily encumber agricultural production, constrain economic growth, hamper job creation, or increase the cost of food for Americans and our customers around the world.”

The task force will examine and consider, among other issues, current barriers to economic prosperity in rural America and how innovation and technology may play a role in long-term, sustainable rural development.  The panel will attempt to strengthen federalism by working with state agencies charged with implementing economic development, agricultural, and environmental programs, while also emphasizing regulatory flexibility for farms and small businesses.  With a dependence on sound science, task force members will examine crop protection tools used by farmers and also address concerns regarding labor needed for livestock and year-round agricultural jobs.  Additionally, the group will focus on tax policies that allow family farms to remain intact, while also protecting against federal takeover of state-adjudicated water rights, permitting and licensing, and conservation requirements beyond what is provided in law.  Finally, members will look to improve food safety and the implementation of food safety laws, but also recognize the unique nature of farming and the diverse business structures of farms.

“It used to be that people in agriculture feared disease and drought as the greatest threats to their livelihoods and their mission of feeding America and the world,” Perdue said.  “While those hazards remain, too often now it is the government – through interference and regulation – that poses the most existential threat to American farming.  We aim to put a stop to that.”

The task force will seek input from stakeholders in the agricultural community and is required to issue a report with recommendations for legislative or administrative actions within 180 days.  The task force will consist of representatives from the following cabinet agencies and executive branch departments:
• Secretary of the Treasury;
• Secretary of Defense;
• Attorney General;
• Secretary of the Interior;
• Secretary of Commerce;
• Secretary of Labor;
• Secretary of Health and Human Services;
• Secretary of Transportation;
• Secretary of Energy;
• Secretary of Education;
• Administrator of the Environmental Protection Agency;
• Chairman of the Federal Communications Commission;
• Director of the Office of Management and Budget;
• Director of the Office of Science and Technology Policy;
• Director of the Office of National Drug Control Policy;
• Chairman of the Council of Economic Advisers;
• Director of the Domestic Policy Council;
• Director of the National Economic Council;
• Administrator of the Small Business Administration;
• United States Trade Representative;
• Director of the National Science Foundation; and
• Heads of such other executive departments, agencies, and offices as the President or the Secretary of Agriculture may, from time to time, designate.



Fischer Welcomes Executive Order for Agriculture & Rural America

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Committee on Environment and Public Works, today released the following statement after President Donald Trump signed an executive order to strengthen agriculture and promote prosperity in rural America:

“Strong and prosperous rural communities are the heart of Nebraska. I welcome President Trump’s executive order today establishing the Interagency Task Force on Agriculture and Rural Prosperity. Farmers, ranchers, and rural residents deserve regulatory certainty so they can do their jobs and provide for their families. I look forward to working with the task force and will continue to promote policies to benefit Nebraska agriculture and rural America.”

Key highlights of the executive order include:
-          Recognizing a reliable, safe, and affordable food and fiber supply is critical to America’s national security and prosperity.
-          Determining it is in the national interest to ensure farmers, ranchers, and families in rural America are not hindered by unnecessary regulation.
-          Establishing the Interagency Task Force on Agriculture and Rural Prosperity, which includes cabinet level secretaries, the EPA Administrator, the United States Trade Representative, and many others. The task force will identify legislative, regulatory, or policy changes to promote agriculture and prosperity in rural America. The task force will also coordinate with other executive orders to eliminate red tape and expand opportunities for rural America.



Soy Growers Look to White House Task Force to Lead on Key Issues

The American Soybean Association (ASA) welcomed today’s establishment by the White House of a task force to address the challenges facing America’s farmers. According to an executive order issued by the White House, the task force, to be led by Agriculture Secretary Sonny Perdue, will identify policy areas where executive branch agencies can take action to improve economic development, job growth, infrastructure improvements, technological innovation, energy security, and quality of life for rural America and U.S. farmers. ASA President Ron Moore, a farmer from Roseville, Ill., applauded the creation of the task force in a statement issued today:

“It is encouraging that President Trump’s executive order recognizes the vital work that farmers do for our fellow Americans. By noting specifically that a reliable, safe and affordable food supply is critical to our success and stability as a nation, President Trump sets a firm foundation for future conversations with our industry. We are confident that Secretary Perdue will be a productive and forward-thinking guide for these conversations.

“The multiple functions of the task force will help move our industry forward, and specific directives like addressing regulatory barriers farmers face and investing in the infrastructure on which our industry depends will directly address some of our most significant challenges. As the task force begins its work, we want to ensure a constant line of communication between ASA and other farm organizations and the task force so that this group can function as effectively and successfully as possible. We look forward to opportunities to sit down with President Trump, Secretary Perdue, and others in the administration to provide input on how the task force can best serve soybean farmers.”



RFA to EPA: Keep the RFS on Track in 2018

In a letter sent today to EPA Administrator Scott Pruitt, the Renewable Fuels Association (RFA) encouraged the agency to ensure the 2018 RFS renewable volume obligation (RVO) rulemaking stays on schedule and maintains the conventional renewable fuel requirement at the statutory level of 15 billion gallons. Along with the letter, RFA submitted a new analysis to EPA showing that gasoline contained more than 10% ethanol in 2016, underscoring that the so-called “blend wall” is not a real barrier to RFS compliance.

“The ethanol industry was highly encouraged by your commitment to ‘administer the [RFS] program according to the intent of Congress’ and to keep the program’s rulemakings on schedule,” RFA President and CEO Bob Dinneen wrote to Administrator Pruitt.  “When affected parties under the RFS are provided with regulatory certainty and sufficient lead time for planning, they have consistently demonstrated an ability to adapt their operations and comply with the standards.”

As an example, the final 2017 RFS RVO–which set the conventional biofuel requirement at the statutory level of 15 billion gallons–was published on schedule in November 2016. “This provided obligated parties and renewable fuel producers with ample time to plan and implement strategies that will facilitate compliance with this year’s standards,” Dinneen highlighted.

In fact, “[e]thanol producers have ramped up production and are on pace to produce a record supply of 16 billion gallons of conventional renewable fuel in 2017, well above the 15-billion-gallon conventional renewable fuel RVO. Meanwhile, refiners and blenders have upped their inclusion of ethanol in U.S. gasoline, with average blend rates hitting a record weekly level of 10.4% in mid-January,” Dinneen wrote.

Recent analysis of data from the Energy Information Agency, released last week by RFA, found that gasoline consumed in the United States in 2016 contained more than 10% ethanol on average for the first time ever, with growing consumption of E15, mid-level ethanol blends and flex fuels responsible for the increase. The analysis dispels the myth that 9.7% or 10.0% is the marketplace limit for ethanol content in U.S. gasoline, and demonstrates that the so-called “blend wall” is not a real constraint on ethanol consumption.

“Your commitment to timeliness and certainty in the RVO rulemaking process will allow this evolution of the marketplace to continue in 2018,” Dinneen wrote. “Over the past 18 months, obligated parties have shown that they can readily achieve compliance with RFS requirements if EPA’s annual RVO rulemakings remain faithful to Congressional intent, are published on schedule, and provide certainty to the marketplace. Accordingly, we respectfully ask that EPA ensures the 2018 RVO rulemaking process remains on schedule, and that the 2018 conventional renewable fuel volume requirement remains at the statutory level of 15 billion gallons,” Dinneen concluded.



DDGS a Win-Win for U.S. and Mexican Producers

Selling 50 metric tons of U.S. distiller's dried grains with solubles (DDGS) may seem minor, but Javier Chávez, U.S. Grains Council (USGC) Mexico marketing specialist, views these small sales to cattle and dairy producers in southeastern Mexico as the start of another big opportunity for U.S. feed grains.

DDGS is a well-known and frequently-used feed source in northern Mexico but does not benefit from the same recognition in the southeastern region of the country. Instead, both cattle and dairy operations rely on grazing pasture to feed the region's estimated seven million cattle.

Chávez explained this substantial market is largely undeveloped due to a lack of knowledge of superior feeding practices and inefficient distribution of feed ingredients. There, available forage provides inadequate nutrition, resulting in poor body condition scores, insufficient daily weight increases, late pregnancies and very large calving intervals.

USGC identified the need in this area for higher-quality feed and an opportunity to create demand for U.S. DDGS. The Council started conducting DDGS feeding trials in 2015, in coordination with consultants, for calves, heifers and dairy cattle in the Mexican state of Chiapas. The combination of the good taste, superior nutritional value and high digestibility of U.S. DDGS resulted in increased milk production, better body condition scores and improved fertility. For example, heifers fed U.S. DDGS could be bred to give birth at around two years of age, compared to the regional norm of three or four years.

"The improved fertility means one more calf and one more lactation in the life of a cow, which means a lot of extra money for the producer," Chávez said. "Supplementing with DDGS means a tremendous savings of time and an increase in the profitability of the ranch."

The Council presented the DDGS feeding trial results in a series of on-farm presentations. However, Chávez said he realized the Council needed to expand its work to suppliers because DDGS were not used in the region previously, and producers did not have existing relationships to make purchases following positive trial results.

"The main problem we had was that we presented the result, and producers were happy and convinced that they can be more efficient through supplementation with DDGS," Chávez said. "Now, we are developing both ends of the market - end-users and suppliers."

As a result, this year's presentations now include a DDGS distributor. Doing so at the most recent presentation in Chiapas resulted in 50 metric tons of sales on the day of and following the presentation. That small success is one the Council believes will continue to expand following additional DDGS feeding trials underway in Yucatan, Tabasco and Veracruz.

This win-win scenario for U.S. farmers and Mexican producers is built on a strong trading relationship that benefits from advantageous trade policy and robust market development. The trading preferences in the North American Free Trade Agreement (NAFTA) have incentivized the integration of logistics on both sides of the border, and the Council's work in Mexico over the past 30 years has helped expand the use of U.S. grain products throughout the country. 

"NAFTA helped us have U.S. DDGS available and accessible in this area," Chávez said. "Without the trade agreement, it would be harder, and more expensive, to get U.S. DDGS to this market with fewer suppliers willing to sell it."



Valero Optimistic on Potential Ethanol Credits Changes

Valero Energy thinks the EPA could tweak ethanol regulations within the next six months "if they really push it." The regulations, designed to boost the amount of ethanol blended into U.S. gasoline, require refiners to either blend ethanol with gasoline or buy credits, called RINs, and have cost independent refiners millions of dollars. VLO and others have lobbied the EPA to move the point in the fuel supply chain at which the credits are created, which would take the onus off refiners. During VLO's earnings call, Senior Vice President Jason Fraser says VLO believes the leadership at the EPA installed by the Trump Administration is favorable to their position. "With the new team at the EPA we're really hopeful," he says.



South Africa to See Record Corn, Soybean Crops in 2017

South Africa will reap the largest ever corn and soybean crops during 2017, aided by good rains and larger plantings, says the Crop Estimates Committee. Corn output will likely rise 14.5 million tons, which is 87% than 2016 crop. The latest forecast is 2% high than last month's projection as good rains continue to boost crop prospects in Africa's no. 1 corn grower, fueling a recovery from the worst drought in a century last year. Soybean output is projected to nearly double to 1.23 million tons, which is the "largest soybean crop produced in the history of South Africa" CEC said.



BASF strengthens digital farming portfolio with ZedX acquisition

BASF has signed an agreement to acquire ZedX Inc., a leader in the development of digital agricultural intelligence. Headquartered in Bellefonte, Pennsylvania, ZedX’s expertise lies in the development of agronomic weather, crop, and pest models that rapidly translate data into insights for more efficient agricultural production. With this planned acquisition, BASF strengthens its digital farming footprint and further invests in helping growers take advantage of big data generated in farming and beyond.

“Growers are embracing cutting-edge technology and tools that can help them increase crop yields,” said Scott Kay, Vice President, Crop Protection, BASF North America. “ZedX’s innovative platforms and strong intelligence capabilities will not only enhance our current digital services, but will also provide growers with critical data to successfully manage their operations.”

In a time where digital transformation is changing business, BASF aims to ensure that agronomic insights and recommendations from digital solutions help its customers make better, more informed decisions.

“BASF is playing an active role in the digital transformation of agriculture and is constantly evaluating where and how to engage further,” said Jürgen Huff, Senior Vice President, Global Strategic Marketing of BASF’s Crop Protection division. “ZedX’s experts impressed us with their extensive and deep know-how in agronomic models. We are very pleased to incorporate their knowledge into our offers to serve farmers’ needs through innovative products and services.”

Joe Russo, ZedX’s Founder and President, pointed out that during a three-year collaboration, the partnership has already shown great results. “Our modeling expertise, coupled with BASF’s knowledge of chemistry, has truly benefited growers and agriculture in general. For example, we developed a model that gave the right window of application for a BASF herbicide based on important weather and environmental conditions.”

Weather conditions, soil temperature, wind speed – all of these factors can influence the performance of crop protection products. By acquiring ZedX, BASF will be able to help farmers use their resources more efficiently and sustainably. Also, it will further complement BASF’s Maglis™ offer launched in 2016.

“The smart use of digital solutions can open up all sectors of the economy to many new opportunities, and farming is no exception. ZedX is a great fit to our growth plan. We will strengthen our sales by offering targeted advice, insights and recommendations and by interacting more closely with our customers,” concluded Huff.

The acquisition is expected to be completed within four weeks. Products and solutions from ZedX will soon be available to all key markets. Financial details of the deal were not disclosed.