Friday July 21 Cattle on Feed Report + Ag News

NEBRASKA CATTLE ON FEED UP 2 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.23 million cattle on feed on July 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 2 percent from last year. Placements during June totaled 425,000 head, up 16 percent from 2016. Fed cattle marketings for the month of June totaled 530,000 head, up 4 percent from last year. Other disappearance during June totaled 15,000 head, unchanged from last year.



IOWA CATTLE ON FEED REPORT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 670,000 head on July 1, 2017, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 1 percent from June 1, 2017, but up 10 percent from July 1, 2016. Iowa feedlots with a capacity of less than 1,000 head had 500,000 head on feed, down 9 percent from last month and down 8 percent from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,170,000 head, down 5 percent from last month but up 1 percent from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during June totaled 72,000 head, a decrease of 15 percent from last month but up 33 percent from last year. Feedlots with a capacity of less than 1,000 head placed 36,000 head, up 3 percent from last month, but down 29 percent from last year. Placements for all feedlots in Iowa totaled 108,000 head, down 10 percent from last month but up 3 percent from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during June totaled 80,000 head, down 2 percent from last month, but up 11 percent from last year. Feedlots with a capacity of less than 1,000 head marketed 84,000 head, up 22 percent from last month and up 14 percent from last year. Marketings for all feedlots in Iowa were 164,000 head, up 9 percent from last month and up 12 percent from last year. Other disappearance from all feedlots in Iowa totaled 4,000 head.



United States Cattle on Feed Up 4 Percent
   
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on July 1, 2017. The inventory was 4 percent above July 1, 2016. The inventory included 6.96 million steers and steer calves, up 1 percent from the previous year. This group accounted for 64 percent of the total inventory. Heifers and heifer calves accounted for 3.86 million head, up 11 percent from 2016.

Placements in feedlots during June totaled 1.77 million head, 16 percent above 2016. Net placements were 1.71 million head. During June, placements of cattle and calves weighing less than 600 pounds were 375,000 head, 600-699 pounds were 315,000 head, 700-799 pounds were 430,000 head, 800-899 pounds were 385,000 head, 900-999 pounds were 170,000 head, and 1,000 pounds and greater were 95,000 head.

Marketings of fed cattle during June totaled 1.99 million head, 4 percent above 2016. Other disappearance totaled 56,000 head during June, 8 percent below 2016.

United States All Cattle on Feed Up 6 Percent from 2015
Cattle and calves on feed for the slaughter market in the United States for all feedlots totaled 12.8 million head on July 1, 2017. The inventory was up 6 percent from the July 1, 2015 total of 12.1 million head. Cattle on feed in feedlots with capacity of 1,000 or more head accounted for 84.5 percent of the total cattle on feed on July 1, 2017, down 0.1 percent from 2015.



July 1 Cattle Inventory Up 4 Percent from 2015

All cattle and calves in the United States, as of July 1, 2017, totaled 103 million head. This is 4 percent above the 98.2 million head on July 1, 2015.

All cows and heifers that have calved, at 41.9 million head, are 5 percent above the 39.8 million head on July 1, 2015. Beef cows, at 32.5 million head, are up 7 percent from two years ago. Milk cows, at 9.40 million head, are up 1 percent from 2015.

All heifers 500 pounds and over, as of July 1, 2017, totaled 16.2 million head. This is 3 percent above the 15.7 million head on July 1, 2015. Beef replacement heifers, at 4.70 million head, are down 2 percent from two years ago. Milk replacement heifers, at 4.20 million head, are unchanged from 2015. Other heifers, at 7.30 million head, are 9 percent above two years earlier.

Calves under 500 pounds in the United States, as of July 1, 2017, totaled 28.0 million head. This is 5 percent above the 26.7 million head on July 1, 2015. Steers weighing 500 pounds and over totaled 14.5 million head, up 3 percent from two years ago. Bulls weighing 500 pounds and over totaled 2.00 million head, up 5 percent from 2015.

Calf Crop Up 3 Percent from 2016
The 2017 calf crop in the United States is expected to be 36.3 million head, up 3 percent from last year's calf crop and up 6 percent from 2015. Calves born during the first half of 2017 are estimated at 26.5 million head. This is up 4 percent from the first half of 2016 and 8 percent above 2015. An additional 9.80 million calves are expected to be born during the second half of 2017.

Cattle and calves on feed for the slaughter market in the United States for all feedlots totaled 12.8 million head on July 1, 2017. The inventory is up 6 percent from the July 1, 2015 total of 12.1 million head. Cattle on feed, in feedlots with capacity of 1,000 or more head, accounted for 84.5 percent of the total cattle on feed on July 1, 2017. This is down 0.1 percent from 2015. The combined total of calves under 500 pounds and other heifers and steers over 500 pounds (outside of feedlots) is 37.0 million head. This is 5 percent above the 35.4 million head on July 1, 2015. 



NEBRASKA CHICKEN AND EGGS

All layers in Nebraska during June 2017 totaled 8.04 million, down from 9.20 million the previous year, according to the USDA's National Agricultural Statistics Service.

Nebraska egg production during June totaled 202 million eggs, down from 223 million in 2016. June egg production per 100 layers was 2,516 eggs, compared to 2,418 eggs in 2016.



IOWA CHICKEN & EGGS REPORT

Iowa egg production during June 2017 was 1.31 billion eggs, down 3 percent from last month but up 10 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 June 2017 was 54.7 million, up 1 percent from last month and up 7 percent from last year. Eggs per 100 layers for June were 2,396, down 4 percent from last month but up 3 percent from last year.



PROGRAMS AVAILABLE FOR NEBRASKA FARMERS AND RANCHERS SUFFERING FROM DROUGHT CONDITIONS

The Nebraska Department of Agriculture (NDA) is providing information to Nebraska’s farmers and ranchers in need of assistance due to prolonged dry conditions in the state.

“The U.S. Drought Monitor has updated its drought status. In Nebraska, abnormally dry conditions in parts of the state have intensified.  The Department is receiving reports of rapidly deteriorating pasture and field conditions,” said NDA Director Greg Ibach. “In response to the worsening conditions, we are outlining several tools that are available for farmers and ranchers to utilize.”

Emergency Haying and Grazing of CRP
Several counties in Nebraska are authorized for emergency haying or grazing on Conservation Reserve Program (CRP) acres. This is a result of U.S. Department of Agriculture Secretary Sonny Perdue making the authorization available for counties in Montana, North Dakota and South Dakota in D2 or greater stages of drought on the U.S. Drought Monitor. Any county in Nebraska with a border that falls within 150 miles of those D2 or greater designated drought areas in those three states are eligible for the emergency haying or grazing. A map of those counties can be found at www.fsa.usda.gov/ne.

Landowners interested in emergency haying or grazing of CRP acres must contact their local FSA office for details on eligibility requirements and prior to taking any action on CRP acres. To find a local FSA office, go to offices.usda.gov.

Haying of Roadside Right-of-Ways
The Nebraska Department of Transportation (NDOT) authorizes permitted haying of roadside right-of-ways. Permitted haying is allowed by abutting land owners until July 31st, and open to the public for permitted haying beginning August 1st. For details on haying roadside right-of-ways and to obtain permits contact the NDOT Maintenance Office in your district.

NDA Hay Hotline
The Nebraska Department of Agriculture offers a resource for farmers and ranchers looking to buy or sell hay. The Hay & Forage Hotline can be found on the NDA website.  Sellers can post their information on the site themselves or contact NDA at 800-422-6692. The list of sellers is posted on the website and is updated on a regular basis.

Fire Suppression Efforts
On July 18th, Governor Ricketts authorized the issuance of an Emergency Proclamation relating to fire retardant materials. This proclamation will allow the Nebraska Emergency Management Agency to replenish fire retardant materials which have been partially depleted by fire suppression efforts in Nebraska and by assisting other states with wildfires which have been aided by drought conditions. The proclamation will allow the Adjutant General greater flexibility for wildfire suppression efforts.

The NDA Drought Central Website contains information on all these programs and will be continually updated with valuable resources. It can be found at droughtcentral.nebraska.gov

“My agency and I appreciate the proactive response by U.S. Secretary of Agriculture Sonny Perdue, Governor Ricketts and the resources being made available through various agencies of the State of Nebraska,” said Ibach. “NDA will continue to monitor the states drought conditions closely and provide further assistance when appropriate.”



NE Corn Board to Meet

The Nebraska Corn Board will hold its next meeting on Friday, August 25, 2017 at Embassy Suites located at 1040 P Street in Lincoln, Nebraska.

The meeting is open to the public, providing the opportunity for public comment.  The Board will conduct regular board business and hold election of officers.  The meeting is open to the public.  A copy of the agenda is available by writing the Nebraska Corn Board, PO Box 95107, Lincoln, NE  68509, sending an email to susan.zabel@nebraska.gov or by calling 402/471-2676.



Public event set to talk taxes and sustaining vibrant communities

A community conversation on the ongoing property tax debate is scheduled for Tuesday, Aug. 1. This public event, hosted by the Center for Rural Affairs, will be held at Lazy Horse Vineyards, 211 Road 20, Ohiowa, from 6:30 to 7:30 p.m.

The discussion will focus on the tax debate stemming from this year’s legislative session and the impact of proposals on local residents, schools, and governments.

Superintendent Stephen Grizzle, of Fairbury Public Schools, and Eric Kamler, farmer and Geneva City Councilman, will attend the meeting to share local perspectives on the Nebraska tax system.

“The legislative session ended without a solution or clear path forward to the property tax challenge,” said Jordan Rasmussen, policy program associate with the Center for Rural Affairs. “Yet the property tax burden continues to weigh heavily upon rural communities, from residents and farmers, to the school systems and local governments that rely on tax funding to do their work.”

Residents are invited to join the conversation on the balance among property taxes, education, and public safety cuts.

“Approaching our current tax environment can be complicated,” said Rasmussen. “Residents need to weigh in as our representatives work toward solutions that sustain the vibrant rural communities we call home.”

For more information or to RSVP, contact Henry Miller at 402.687.2100 ext. 1011 or henrym@cfra.org.



Farmer-Leaders Elected to Board of Directors for Iowa Corn

Iowa Corn announced today the results of the Board of Directors elections for the Iowa Corn Growers Association (ICGA) and Iowa Corn Promotion Board (ICPB).

Those elected as ICGA Directors will continue to bring grassroots policy issues forward and be the collective voice for 7,500 corn farmer-members, lobbying on agricultural issues at the state and federal level. They include:
    District 3- Mark Mueller, Bremer County *
    District 4- Jolene Riessen, Sac County
    District 9- Roger Wuthrich, Davis County *
                                           *For those re-elected

Since 1978, Iowa corn farmers have elected their peers to serve on the ICPB to oversee the investment of funds generated by the Iowa corn checkoff. ICPB Directors will continue to promote a thriving Iowa corn industry through research into new and value-added corn uses, domestic and foreign market development and providing education about corn and corn products. These individuals include:
    District 1-Kelly Nieuwenhuis, O’Brien County *
    District 3-Greg Alber, Buchanan County *
    District 6- Pete Brecht, Linn County *
    District 9- Stan Nelson, Des Moines County​   
                                                          *For those re-elected

Both organizations are charged with creating opportunities for long-term Iowa corn grower profitability. Elected Directors will begin to serve on September 1st, 2017.



ICGA Members Take Ag Priorities to Washington, D.C. during Corn Congress

Iowa Corn Growers Association (ICGA) farmer-leaders convened in Washington, D.C. this week with other corn farmers from across the country to advocate for key agricultural issues as part of the National Corn Growers Association (NCGA) Corn Congress meeting. The Iowa delegation, including ICGA directors, grassroots members, the Iowa Corn Collegiate Advisory Team (CAT) and the Iowa Corn Leadership Enhancement and Development (I-LEAD) Class 8 visited 50 Congressional offices, many of which represented areas outside the Corn Belt because it is important that all member of Congress understand the importance of American agriculture. These Capitol Hill meetings focused on:
-    Expanding consumer access to higher blends of ethanol
-    Funding for critical trade promotion and export programs (MAP and FMD)
-    Agricultural priorities for the renegotiation of NAFTA

“Corn is a widely universal topic; it touches almost every area of everyone’s life,” said Iowa Corn Growers Association (ICGA) President Kurt Hora, a farmer from Washington. “This year, we had the opportunity to talk with non-Iowa, non-corn states on the Hill and we had a lot of great conversations. I appreciate all of the offices and staffers that took the time to meet with us on our issues. ICGA and NCGA work hard to keep a strong voice on the Hill.”

Iowa Corn farmer-leaders on Monday and Tuesday participated in NCGA Action teams to help set the direction of many key programs and activities. On Wednesday, farmers attending Corn Congress heard from Mexican Ambassador Gerónimo Gutiérrez about the prospects of modernizing the North American Free Trade Agreement (NAFTA). Ambassador Gutiérrez expressed a strong desire to continue strengthening agricultural trade between the U.S. and Mexico.

In addition to meetings on the Hill, ICGA delegates debated their priorities for the upcoming Farm Bill and approved national policy resolutions. NCGA Director Bob Bowman also received recognition for his service as a retiring director of the board.

 “We’re advocating for a fully funded Farm Bill that will help meet farmers priorities with crop insurance and funding for export programs,” said Hora. “The Federal Crop Insurance programs were written in a way to provide a basic level of risk protection to help offset bad economic times and severe weather. We’re seeing its importance again this year as areas in the Midwest struggle with weather.”



Farmers gather in Ames to manage risk in a downturned ag economy

Managing costs, staying ahead of wild market swings and finding efficiency through data mining were key issues experts addressed at Iowa Farm Bureau’s fifth annual Economic Summit held yesterday in Ames.

Chad Hart, Assoc. Prof of Economics at Iowa State University, ISU, stressed the importance of farmers staying engaged in trade negotiations, because of its importance to what farmers grow and sell. “Where would soybeans be without international trade? Would we need to produce four billion bushels of beans? Keeping farmers involved in free trade agreement discussions is crucial, but not all U.S. consumers understand that.  “Take a look at meat exports. Do Americans know our biggest market for growth in meat exports is India? There has been a 2,000 percent growth in exports to them in the last two decades in beef.  India has 1.2 billion people and 80 percent are Hindu, 20 percent aren't, but that 20 percent adds up to a lot of beef.  Muslims won’t eat pork, they’ll eat beef; Hindu won’t eat beef, they’ll eat pork and everyone eats chicken,” says Hart.

Managing risk and staying optimistic through wild grain market swings will also be important for Iowa farmers in 2018.  Don Roose, president, U.S. Commodities, Inc., gave attendees the 2018 crop and livestock outlook. “This is a year when we have smaller crops and smaller demands, so it’s important to take advantage of risk management, since we have large world supplies in commodities—that is the dominant issue not the grain side.  On the livestock side, the takeaway on the cattle market is that our supplies are going to be up in the next two quarters and our demand is going to be stagnant.  So, this is the time of year where you really have to be keenly aware of the weather forecast and do some proper risk management.”

Dr. Michael Castellano, Soil Health, Cover Crops & Nutrient Management associate professor at ISU, advised farmers on the importance of soil health.  “Can we have it all: yields, soil health, and water quality? The answer is yes; there are ways we can do it.  Many great practices are reducing nitrate loads and can be custom-fitted for each farm.  Improved fertilizer management will not get us to our goal because fertilizer is not the root problem of water quality challenges, and it’s not the answer to improvement.  Improved nitrogen fertilizer management can make a very small impact, but looking at other more effective practices is what will help us progress and move toward reaching our water quality goals,” says Castellano.  “For example, edge of field practices including saturated buffers, bioreactors, wetlands, and drainage management, as well as in-field practices including cover crops like alfalfa and rye have shown the greatest percentage of nitrate load reduction, according to data compiled from the Iowa Nutrient Reduction Strategy.” 

Iowa Farm Bureau Federation’s Director of Research and Commodity Services, Dave Miller, says, it’s crucial to keep farming sustainable in Iowa, since one out of every five jobs in the state comes from agriculture.  “Farmers are very engaged in improving environmental sustainability as well as economic stability of their farms, and the information they sought at this summit proves they are committed to staying nimble.



IFBF young farmer advisory committee welcomes new officers

The Iowa Farm Bureau Federation (IFBF) Young Farmer Advisory Committee has elected new leaders for 2017.  These officers and new district representatives will work to unite young farmers in Iowa through various programs and events, including the biggest event: the IFBF Annual Young Farmer meeting, which draws a diverse array of young farmers and agribusiness leaders together.   IFBF Young Farmer leaders elected to key positions in 2017 include:
Laura Cunningham, Floyd County, Chair
Brianne Streck, Woodbury County, Vice-Chair
Mary Beth Jackson, Mahaska County, Secretary
Hannah Johnson, Davis, Historian
Ben Pullen, Clay County, PR Chair

Laura Cunningham and her husband, Aaron, live near Nora Springs and co-own SkyView farms, a direct-market Angus cattle operation. Laura graduated from Iowa State University with a degree in ag business and works full-time in marketing for Latham Hi-Tech Seeds. Laura enjoys camping, boating on Clear Lake, refinishing furniture, running and taking day trips via airplane to see friends or family as Aaron has his pilot’s license.

“The face of Farm Bureau and agriculture is far more diverse than it’s ever been, and today being a Farm Bureau leader is about seeking opportunities that unite, not divide. As chair, I look forward to working with the committees to help guide the work they do to bring people together and plan young farmer engagement programs and events in their districts.  This is a role that means a lot to me both as a young farmer and as a woman,” said Cunningham.

“Like many I know, I have always worked hard to get my work done and on our farm, gender has never mattered. I believe it’s the same on many farms today.  I hope I can inspire other young women to lead, to help them find and embrace opportunities that exist for them in agriculture, because I know first-hand there are many who are there to cheer us on along the way.”    

Brianne Streck, her husband, Grant, and their three children live southeast of Moville. They grow corn, soybeans, hogs and currently two bucket calves. Brianne works as a grain merchandiser at Flint Hills Resources, helping farmers sell corn and purchase distillers grain. She and Grant are both 4-H volunteers, and Brianne volunteers as a superintendent at the Woodbury County Fair. She also enjoys gardening and cheering on the Cyclones.

Mary Beth Jackson and her husband, Mike, along with their three kids live near Oskaloosa where they grow corn, soybeans, cover crops and custom feed hogs. Mary Beth also has an off-farm job selling Premier Design Jewelry. She is very active in her community, serving on the advancement committee for a local Christian grade school, leading a mom’s bible study group and being an adult leader for GEMS, a club for young girls that resembles scouts but with a Christian-focused twist.

Hannah and her husband, Brett, live on part of the farm Hannah grew up on near Bloomfield. They raise commercial cow-calf pairs and club lambs which they market to 4-H and FFA members in the Midwest. Hannah works as an agriculture education teacher and FFA advisor for the Moulton-Udell Community School District.   She and Brett are both involved in coaching the Davis County 4-H and FFA livestock judging team, and they both travel during the summer judging county fairs in Iowa and Missouri. Hannah also coaches a junior high volleyball team.

Ben Pullen, his wife, Bri, and three children live on a farm outside of Spencer where they raise sheep and have recently begun direct niche-marketing with Hereford pigs. Ben works full-time as a Youth Program Specialist for Iowa State University Extension, working with 4-H, and Bri is a paraeducator.  The couple is very involved in Clay County 4-H, serving on swine and static exhibit committees.  Ben, as a former special education teacher, says education is his career, but agriculture is his passion.

Sharing the story of agriculture is a passion shared by all Young Farmer Advisory Committee members, especially since Iowa agriculture is diverse in both what is grown and who is growing it.  Forty-five percent of Iowa Farm Bureau county boards have women in leadership roles, and the average age of a county president and vice president is 42 years old. This means half of members in these leadership roles are less than the age of 42. Many are involved in the IFBF Young Farmer Program, available for Farm Bureau members ages 18-35, which provides leadership and participation opportunities to nurture the prosperity of young farmers and their families.

The program advisory committee plans various events around the state each year, including an annual statewide conference each January that brings hundreds of young farmers together.  This year’s IFBF Young Farmer conference will take place Feb. 2-3, 2018 at The Meadows Conference Center at Prairie Meadows in Altoona. 



LIVESTOCK HAULERS VISIT WASHINGTON, D.C.

Ten livestock haulers from Iowa, as well as several U.S. pork producers, traveled to Washington this week to meet with government officials about a pending mandate from the Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) that requires all commercial vehicle operators to track their hours of service with electronic logging devices after Dec. 18, 2017. The mandate is not practical for livestock transportation and could lead to animal welfare issues. The group met with Congressman Brian Babin, R-Texas, who introduced legislation this week, the “Electronic Logging Device (ELD) Extension Act of 2017,” that would delay the ELD mandate by two years, allowing the FMCSA to find a workable solution for livestock production and transportation.



Expansion in Soy Acres Drives Checkoff Investments

The U.S. soybean industry is turning a corner. This year, soy acres closed in on corn acres, narrowing the gap between the two crops. At the United Soybean Board’s (USB) July meeting, the booming supply of soy was a topic of discussion – as was the need for continued strong demand. Conversations shifted from increasing volume to maximizing value to set farmers up for long-term profitability.

As USDA reports a record high of 89.5 million planted acres, the farmer-leaders are investing checkoff dollars both inside the bean to improve the meal and oil, and beyond the bean to meet evolving end-user demands sustainably. Continuous improvement in U.S. soy keeps preference strong. In terms of soybean meal, the farmers discussed a growing interest in who is purchasing and using U.S. soy and how to meet their needs for a quality product through innovative research and measurement. For soybean oil, the farmers looked to leverage rapidly expanding technologies, including high oleic, and to also diversify the investment portfolio through industrial uses. The board also elevated the conversation on sustainability and tools to meet the needs of the future, including plant breeding innovations. This portfolio of investments helps to maximize farmer profit opportunities long term.

“U.S. soybean farmers and their checkoff are working toward the best of both worlds – quantity and quality,” says USB Chair John Motter. “Farmers need to be able to make decisions on not just how many acres, but what’s in those acres. We’re focused on getting more value per acre returned to farmers.”

It is a pivotal time for soybeans, and it’s also a momentous time for the soy checkoff. In addition to investing checkoff funds in research, promotion and marketing that look beyond the bushel, the farmer-leaders took this time to leverage the experience and expertise of USB Chief Executive Officer (CEO) John Becherer to make investments for the future and to position the checkoff for its next CEO. Becherer, who is set to retire at the end of 2017, was recognized for his contributions and 29-year service to the industry this week.

“Finding, launching and leveraging profit opportunities for all U.S. soybean farmers is a constantly evolving mission for USB,” Becherer says. “Checkoff investments made by U.S. soybean farmers grew the value of U.S. soy over the past 25 years through innovative investments and partnerships with industry. We look forward to continuing to do so for the next 25 years to maximize value for U.S. soy and maximize profit opportunities for U.S. soybean farmers.”



Second Quarter Grain Inspections Reach Record High

In 2017, total second quarter inspections of grain (wheat, corn, and soybeans) for export from all major U.S. ports reached a record 29.8 million metric tons (mmt), according to USDA's Grain Inspection, Packers, and Stockyards Administration (GIPSA).

This amount is up 23 percent from the same period last year and 37 percent above the 5-year average.

Inspections of soybeans and wheat increased from last year, but corn inspections remained unchanged. During the second quarter, outstanding export sales of soybeans and wheat were well above the same time last year.

For the same period, outstanding export sales of corn were down from the same time last year.

For 2017/18, USDA's export projections in the July World Agricultural Supply and Demand Estimates (WASDE) report are down from the previous marketing year for corn and wheat, but up for soybeans.

Second quarter grain inspections increased 57 percent in the Pacific Northwest, also reflecting a 43 percent jump in PNW rail deliveries to port.



U.S. fuel ethanol production continues to grow in 2017

Through the first six months of 2017, U.S. weekly ethanol production averaged 1.02 million barrels per day (b/d), an increase of 5% over the same period in 2016. On a weekly basis, U.S. ethanol production set a record of 1.06 million b/d in the week of January 27, 2017, and it has averaged near or above 1 million b/d in every week of 2017 except for a few weeks in April, when ethanol plants typically undergo seasonal maintenance. If ethanol production remains relatively high through the second half of the year, as EIA’s Short-Term Energy Outlook (STEO) expects, 2017 will set a new record for annual fuel ethanol production.

Corn is the primary feedstock of ethanol in the United States, and large corn harvests have contributed to increased ethanol production in recent years. The U.S. Department of Agriculture estimates that the United States produced a record 15.1 billion bushels of corn in the 2016–17 harvest year, 11% more than the 2015–16 harvest. Increased corn production and relatively stable corn prices have helped make increased ethanol production more profitable and less susceptible to corn price shocks that had affected ethanol profitability and output in the past.

U.S. ethanol plant capacity increased for the fourth consecutive year in 2017, reaching a nameplate capacity of approximately 15.5 billion gallons per year in January. Total ethanol production is expected to reach 1.02 million barrels per day in 2017, a rate equivalent to 15.8 billion gallons. Annual ethanol production is able to exceed capacity for two reasons: new production capacity has likely been added since the January 2017 capacity survey date, and many ethanol plants are able to operate at levels beyond their nameplate production capacity.

In the United States, ethanol is primarily used as a blending component in the production of motor gasoline and mainly blended in volumes up to 10% ethanol, also known as E10. In recent years, ethanol production increased as a result of higher Renewable Fuel Standard (RFS) targets and growth in domestic motor gasoline consumption, almost all of which is now blended with 10% ethanol by volume. Demand for higher ethanol blends such as E15 and E85 remains limited.

U.S. motor gasoline consumption has grown the past four years, increasing from 8.7 million b/d in 2012 to 9.3 million b/d in 2016, resulting in an increase of 7% in additional ethanol demand by way of E10 blending that has helped to support consistent growth in ethanol production over the same period.

Exports of ethanol have also been increasing. Through the first four months of 2017, U.S. gross ethanol exports have averaged 96,000 barrels per day—40% higher than exports during the same period in 2016—and the highest level on record for that period of the year. In its latest Short-Term Energy Outlook, EIA forecasts that U.S. ethanol net exports will reach nearly 80,000 b/d in 2017, likely surpassing the previous record of 70,000 b/d set in 2011.

Through the first half of 2017, increasing ethanol production rates have outpaced domestic E10 gasoline demand and export growth, leading to elevated ethanol inventory levels at a time when they are typically falling to meet peak driving demand. As of July 14, 2017, weekly ending stocks of ethanol reached 22.1 million barrels, 5% higher than the same time last year and 13% higher than the previous five-year average. Ethanol inventories reached a record level of 23.7 million barrels for the week ending March 31, 2017.



NCGA Statement on the Consumer and Fuel Retailer Choice Act

The following is a statement from the National Corn Growers Association regarding the Consumer and Fuel Retailer Choice Act (S. 517):

“Corn farmers appreciate the work of Senator Deb Fischer (R-Nebraska) and the bipartisan Senate sponsors of the Consumer and Fuel Retailer Choice Act to advance this legislation.  While this legislation will not move to a committee markup at this time, we will continue to back efforts to remove this unnecessary roadblock to consumer choice that saves drivers money and is better for the environment.

“It is unfortunate that some have turned a focused effort to remove an outdated regulatory barrier into a referendum on a wide range of other issues unrelated to a simple question, which is whether a consumer choice barrier for three months of the year is still justified. As experts testified to the Senate Environment and Public Works Committee, this barrier has no environmental or economic justification. On the narrow question of whether retailers who offer consumers an approved fuel choice for 9 months out of the year should be allowed to offer that choice for all 12 months of the year, we think most agree this straightforward fix is common sense.

“Corn farmers stand behind ethanol as an American-made, renewable fuel that increases our energy independence while reducing emissions and improving air quality. We will continue working to see this barrier removed so consumers can have cleaner fuel options year-round.”



Growth Energy statement on the Consumer and Fuel Retailer Choice Act

Growth Energy CEO Emily Skor released the following statement in response to the U.S. Senate Committee on Environment and Public Works’ (EPW) decision to not consider the Consumer and Fuel Retailer Choice Act (S. 517) before Congress adjourns for the August recess:

“We are disappointed the EPW committee decided not to consider the Consumer and Fuel Retailer Choice Act (S. 517) before August recess. We will continue to work with our bipartisan sponsors to enact this bill to provide drivers across the country cleaner fuel options year-round that are better for the environment and save Americans money every time they fill up the gas tank.”



National FFA Organization Names 2017 American Star Award Finalists

Today, the National FFA Organization selected 16 students from throughout the United States as finalists for its 2017 top achievement awards: American Star Farmer, American Star in Agribusiness, American Star in Agricultural Placement and American Star in Agriscience.

The American Star Awards represents the best of the best among thousands of American FFA Degree recipients. The award recognizes FFA members who have developed outstanding agricultural skills and competencies through the completion of a supervised agricultural experience (SAE) program. A required activity in FFA, an SAE allows members to learn by doing. Members can own and operate an agricultural business, intern at an agricultural business or conduct an agriculture-based scientific experiment and report the results.

Other requirements to achieve the award include demonstrating top management skills; completing key agricultural education, scholastic and leadership requirements; and earning an American FFA Degree, the organization’s highest level of student accomplishment.

The finalists include:

American Star Farmer
Joseph Arnold of the Lac qui Parle Valley FFA Chapter in Minnesota
Nickolas James Vollmer of the Merino FFA Chapter in Colorado
Jake Fanning of the Laverne FFA Chapter in Oklahoma
Mark Cavallero of the Madera FFA Chapter in California

American Star in Agribusiness
Nathan M. DeYoung of the Shenandoah FFA Chapter in Indiana
Austin D. Nordyke of the Hugoton FFA Chapter in Kansas
Audra Montgomery of the Carrington FFA Chapter in North Dakota
Shaun Wenrick of the Anna FFA Chapter in Ohio

American Star in Agricultural Placement
Matthew S. Ries of the Lomira FFA Chapter in Wisconsin
Devin Debruhl of the Shenandoah FFA Chapter in Indiana
Kellie Mae Einck of the South O’Brien FFA Chapter in Iowa
Bailey Wilson of the Pilot Point FFA Chapter in Texas

American Star in Agriscience
Chrysta Noelle Beck of the Pettisville FFA Chapter in Ohio
Elizabeth Baker-Mikesell of the Greenwood FFA Chapter in Pennsylvania
Leah Danielle Hefty of the DeKalb FFA Chapter in Indiana
Loren Gregory King of the Branch Area Career Centers FFA Chapter in Michigan

Visit FFA.org/stars for more information about the American Star Awards.

A panel of judges will interview finalists and select one winner for each award at the 90th National FFA Convention & Expo, Oct. 25-28 in Indianapolis. The four winners will be announced during an onstage ceremony on Thursday, Oct. 26.

ADM Crop Risk Services, Case IH, Elanco and Syngenta sponsor the American FFA Degree recognition program.