Thursday August 31 Ag News

 Central Valley Ag, Farmway officially unite September 1

After a Farmway membership vote of approval of 91% on June 8, Farmway Co-op, Inc. (Farmway) and Central Valley Ag (CVA) officially unite into one cooperative September 1, 2017.

The new Central Valley Ag will consist of 90 locations across Iowa, Nebraska and Kansas with more than 800 employees dedicated to serving its producer-owners. CVA is headquartered in York, Neb. with Carl Dickinson serving as President/CEO. Art Duerksen, Farmway President/CEO, joins the CVA management team as Senior Vice President of Business Development.

“We celebrate a historic milestone as we formally join Central Valley Ag and Farmway into one team embracing the cooperative spirit to deliver value to our members,” said Dickinson. “CVA is investing in the people and places that move agriculture forward. As a result, CVA is wholly invested in the long-term success of this region for our employees and customers.”

Combined, the unified cooperative will have more than $400 million in members’ equity creating a strong balance sheet that improves equity revolvement to legacy producers, while providing services and patronage to today’s producers and viability for the future.

“Joining forces with CVA brings together two world-class cooperatives with rich histories and strong track records to create outstanding opportunities for our member-owners and employees,” said Duerksen. “With a 91% vote of approval from our membership, it shows that our producer-owners recognize greater possibilities and have ensured the long-term success of the cooperative by supporting this unification.”

Central Valley Ag offers a wide range of products, services, information and innovation through its agronomy, energy, feed and grain divisions to meet the needs of agricultural producers across the region.

To learn more, visit www.cvacoop.com.



HUSKER HARVEST DAYS: UNIVERSITY EXHIBITS TO FOCUS ON HELPING FARM FAMILIES

Husker Harvest Days exhibits from the University of Nebraska-Lincoln will help show farm and ranch families how minor changes can lead to major returns.

"Small Changes, Big Payback: Strengthening Nebraska's Agricultural Economy" is the theme for the Institute of Agriculture and Natural Resources exhibits at the farm show Sept. 12-14 near Grand Island.

"Exhibits will outline a wide range of decision points, strategies and tools for farmers, livestock producers and farm families that can have a direct impact on their economic well-being, many of which are incremental in nature but can have dramatic impacts on their bottom line," said IANR Harlan Vice Chancellor Mike Boehm.

Exhibits inside IANR's trademark Husker Red steel building at Lot 321 on the south side of the exhibit grounds will provide information on:
> Strategies for managing family budgets during challenging economic times;
> The relationship between cost, nutritional value and impact of various feed sources for cow/calf operations;
> Understanding the county-by-county differences in the risk factors that affect crop insurance rates and how they impact profitability and management decisions;
> How farmers can better utilize the Farm Bill safety net;
> Benchmarking the costs of pumping irrigation water to better control input costs and make decisions related to pump efficiency and energy usage;
> Crop production strategies that can have a positive impact on cost per acre and profit margin;
> Using crop budgets to analyze the operating costs for a farm to become a low-cost producer;
> The university's annual survey of agricultural land value and rental rates in Nebraska.

Outdoor exhibits adjacent to the building will feature a variety of demonstrations related to improving irrigation efficiency and reducing irrigation pumping costs. The outdoor area will also feature a free solar-powered cellphone charging station.

Inside the building, IANR faculty and staff will be available to answer questions on a variety of extension and research-related topics, provide copies of NebGuides and direct those needing more information to extension experts in their local area. Showgoers can learn about the latest opportunities for students at the university's College of Agricultural Sciences and Natural Resources and the Nebraska College of Technical Agriculture in Curtis. Those interested in the Nebraska Leadership Education Action Development program can also visit with a representative.

"We view this event as an excellent opportunity for us to bring the best of IANR and Nebraska Extension and research to Husker Harvest Days, and we take that very seriously," Boehm said. "This year marks Husker Harvest Days' 40th anniversary, and IANR has been a proud part of it since the very first show. We always appreciate the opportunity to visit with stakeholders about what they see as Nebraska's main challenges and opportunities."



STORAGE METHODS TO REDUCE HAY LOSSES
Bruce Anderson, NE Extension Forage Specialist

               As you bring in your round bales for winter storage and feeding, store them to minimize weather losses.

               Hay stored outside will be damaged by rain, snow, wind, and ice this fall and winter.  The average round bale loses about one fourth of its original nutrients during storage, but these losses can be reduced to less than 10 percent or so.  Now, I'm sure you are better than average.  Still, let's look at ways to reduce spoilage by storing that extra valuable hay more carefully this year.

               For instance, do you usually line up bales for easy access so the twine sides touch each other?  Or do you stack your bales?  If so, extra spoilage will occur where these bales touch because rain, snow, and ice will gather in spots where bales touch instead of running off.  Round bales butted end-to-end, cigar-like, usually have less spoilage.

               Does snow drift around your bales?  Bales placed in east-west rows often have drifts on the south side.  Hay next to fencelines or trees can get extra snow.  As snow melts it soaks into bales or makes the ground muddy.  Plus, the north side never gets any sun so it's slow to dry.  This year, line your bales up north-and-south for fewer drifts and faster drying as sunlight and prevailing winds hit both sides of the row.

               Most important is the bottom of your bales.  Always put bales on higher, well-drained ground so water drains away from them.  Keep them out of terrace bottoms or other low spots.  If necessary, use crushed rock, railroad ties, or even pallets to elevate bales to  keep the bottoms dry.  This also will reduce problems getting to your hay or getting it moved due to snow drifts or mud.

               Just a little pre-planning can save lots of hay and frustrations.



Seaboard Triumph Foods Sioux City pork processing plant operations to start

Seaboard Triumph Foods (“STF”) will start operation of its new pork processing plant located in Sioux City, Iowa, on Sept. 5. The facility will begin with one shift of commercial operations that will ramp up employment to approximately 1,100 employees once the shift reaches full production. At full one-shift capacity, the facility will process upwards of 10,000 head of market hogs a day.

Focused on high quality, consistent, wholesome pork, the new pork processing facility will use robotics and innovative technologies to produce a full line of fresh pork products for retail, international, food service, and further processing markets to help fill the increasing world-wide demand for pork. Seaboard Foods will market and sell the pork produced by the Sioux City plant under the PrairieFresh® Premium Pork and Seaboard Farms® brands. The plant will also supply Daily’s® Premium Meats with raw materials for its premium pork products, including raw and precooked bacon.

The plant opening marks a milestone for Seaboard Triumph Foods, a joint venture owned equally by Seaboard Foods and Triumph Foods, which was formed to construct a new pork processing facility in Sioux City. Seaboard Foods is a wholly-owned subsidiary of Seaboard Corporation (NYSE MKT: “SEB”) with a pork processing plant in Guymon, Okla. Triumph Foods is owned exclusively by pork producers with a pork processing plant in St. Joseph, Mo. Seaboard Foods markets and sells pork products produced by both the Guymon and St. Joseph plants under the PrairieFresh® Premium Pork and Seaboard Farms® brands. Together, Seaboard Foods and Triumph Foods also own Daily’s Premium Meats, which manufactures and distributes premium bacon products throughout the United States and internationally.

Approximately 30 percent of the market hogs at the Sioux City plant will be sourced from regional farmers who align with Seaboard Foods’ and Triumph Foods’ animal care and environmental stewardship practices, and share a common commitment to seeking a better way to produce wholesome pork. The remaining hogs will be supplied by Triumph Foods producer-owners and Seaboard Foods’ farms.

Since site work began in late September 2015, numerous local and regional contractors partnered with STF and its project design and construction management firm, Epstein, to build the modern fresh pork plant focused on food safety and efficiency to meet the growing demands of domestic and international customers. The pro-business environment, local and state leadership, ample regional hog supplies, and shovel ready site made Sioux City the prime location to build this state-of-the-art facility.

Chief Operating Officer Mark Porter stated, “We’ve seen great support from the community and local and state government. With their input and our focus on stewardship, the plant design includes modern odor control technologies, bioenergy solutions, and numerous environmentally friendly features.”

He added, “I couldn’t be more proud of the new plant, our team, and all the local and state partners that have helped bring this project to completion over the past two years. We are excited to begin commercial operations and supply the most sought after pork products to our diverse global consumers.”



Dairy Producers Can Enroll for 2018 Coverage
Secretary allows producers to opt out

The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) today announced that starting Sept. 1, 2017, dairy producers can enroll for 2018 coverage in the Margin Protection Program (MPP-Dairy).   Secretary Sonny Perdue has utilized additional flexibility this year by providing dairy producers the option of opting out of the program for 2018.

“Secretary Perdue is using his authority to allow producers to withdraw from the MPP Dairy Program and not pay the annual administrative fee for 2018,” said Acting Deputy Under Secretary for Farm Production and Conservation Rob Johansson. “The decision is in response to requests by the dairy industry and a number of MPP-Dairy program participants.”

To opt out, a producer should not sign up during the annual registration period. By opting out, a producer would not receive any MPP-Dairy benefits if payments are triggered for 2018. Full details will be included in a subsequent Federal Register Notice.  The decision would be for 2018 only and is not retroactive. 

The voluntary program, established by the 2014 Farm Bill, provides financial assistance to participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below the coverage level selected by the producer.

MPP-Dairy gives participating dairy producers the flexibility to select coverage levels best suited for their operation. Enrollment ends on Dec. 15, 2017, for coverage in calendar year 2018. Participating farmers will remain in the program through Dec. 31, 2018, and pay a minimum $100 administrative fee for 2018 coverage. Producers have the option of selecting a different coverage level from the previous coverage year during open enrollment.

Dairy operations enrolling in the program must meet conservation compliance provisions and cannot participate in the Livestock Gross Margin Dairy Insurance Program. Producers can mail the appropriate form to the producer’s administrative county FSA office, along with applicable fees, without necessitating a trip to the local FSA office. If electing higher coverage for 2018, dairy producers can either pay the premium in full at the time of enrollment or pay 100 percent of the premium by Sept. 1, 2018. Premium fees may be paid directly to FSA or producers can work with their milk handlers to remit premiums on their behalf.

USDA has a web tool to help producers determine the level of coverage under the MPP-Dairy that will provide them with the strongest safety net under a variety of conditions. The online resource, available at www.fsa.usda.gov/mpptool, allows dairy farmers to quickly and easily combine unique operation data and other key variables to calculate their coverage needs based on price projections. Producers can also review historical data or estimate future coverage based on data projections. The secure site can be accessed via computer, Smartphone, tablet or any other platform, 24 hours a day, seven days a week.

For more information, visit FSA online at www.fsa.usda.gov/dairy or stop by a local FSA office to learn more about the MPP-Dairy. To find a local FSA office in your area, visit http://offices.usda.gov.



NMPF Statement on USDA Announcement to Allow Farmers to Opt Out of Margin Protection Program
Jim Mulhern, President and CEO, NMPF

“The Margin Protection Program (MPP) in its current form has been a disappointment to many dairy farmers, which is why NMPF has been working both with the U.S. Department of Agriculture (USDA) and Congress to make significant improvements to the program. We had earlier suggested to USDA that, given this level of dissatisfaction, one option would be to allow farmers to opt out of the MPP in the coming calendar year.

“Today’s announcement to allow farmers to opt out of the program in 2018 is a welcome development, in that it acknowledges the widespread dissatisfaction among farmers enrolled in the program. Simply put, the way the program was enacted in the 2014 Farm Bill, it does not meet the needs of America’s dairy farmers today, and declining participation levels amply illustrate farmers’ disenchantment with the MPP. Farmers who choose to opt out of the MPP will then be able to enroll in the Livestock Gross Margin program for 2018.

“Looking ahead, Congress must make more resources available to the MPP, so that the program provides a more effective, affordable safety net – one that provides support when farmers need it. We are currently working with lawmakers to secure program improvements that will restore farmers’ faith in the value of the MPP. We also will continue to work with USDA and Congress to develop additional risk management options for dairy producers.”



EIA:  Ethanol inventory, production lower

Weekly data from the Energy Information Administration this week showed declines for ethanol inventory and plant production. The agency said fuel ethanol stocks again to 21.3 million bbl during the week-ended Aug. 25, although were 400,000 bbl or 1.9% higher on the year.

Plant production fell 10,000 bpd or 1.0% to 1.042 million bpd, while up 19,000 bpd or 1.9% year-on-year.  Still, trade sources said production remains high for this time of year. "[This] marks the highest [four-week] average in 22 weeks," said Geoff Cooper, vice president for research at Renewable Fuel Association.



NCGA Submits Comments to EPA on 2018 Ethanol Volumes

In comments submitted today to the U.S. Environmental Protection Agency (EPA), the National Corn Growers Association asked the Agency to maintain the proposed amount of conventional ethanol blended into the nation’s gas supply for 2018, and to raise the amount of cellulosic, advanced, and total biofuels.

In a letter to EPA Administrator Scott Pruitt, NCGA President Wesley Spurlock writes, “In the 10 years since Congress expanded the RFS in 2007, corn farmers have responded to the growing market for ethanol, increasing production efficiency to help meet the RFS goal of moving the United States toward greater energy independence and security, boosting production of clean, renewable fuels and protecting consumers.”

In its proposed rule for the 2018 standards for the Renewable Fuel Standard (RFS) program, EPA proposed an implied volume of 15 billion gallons for conventional ethanol in 2018, consistent with the level intended by Congress. This is a change from the previous four years, when EPA proposed conventional ethanol volumes below statute—which negatively impacted investment in the renewable fuels industry. A recent decision by the U.S. Court of Appeals for the District of Columbia Circuit upheld the claim from NCGA and other petitioners that EPA erred in how it interpreted and used general waiver authority in setting volumes for 2014-2016.

However, EPA proposed a 73 million gallon reduction in cellulosic fuel volume and a 40 million gallon reduction in total renewable fuel volume for next year, compared with 2017. Spurlock urged EPA to reconsider and raise the volumes for cellulosic, advanced and total biofuels in 2018. This portion of the proposal takes implementation of the RFS law backward.

“We ask EPA to maintain the proposed conventional fuel requirement in the final rule. We also ask EPA to take a more forward-looking approach with stronger final volumes for cellulosic, advanced and total biofuels in order to draw the continued investment and innovation needed to support the ongoing expansion of cellulosic and advanced fuel production.”




RFA to EPA: Maintain 15 BG Conventional Renewable Fuel RVO, Increase Cellulosic Requirements

The Renewable Fuels Association (RFA) submitted comments today to EPA on its proposed 2018 Renewable Fuel Standard renewable volume obligations (RVOs), strongly supporting the 15 billion gallon (BG) requirement for conventional renewable fuels like corn ethanol, but urging the agency to finalize the RVOs that were included in EPA’s first draft of the proposal that was submitted for interagency review in May.

In July, EPA proposed a total renewable fuel volume of 19.24 BG, of which 4.24 BG is advanced biofuel, including 238 million gallons of cellulosic biofuel. That leaves a 15 BG requirement for conventional renewable fuels.

“RFA is pleased that the EPA maintained the statutory implied volume requirement of 15 billion gallons for conventional renewable fuels in 2018,” wrote RFA President and CEO Bob Dinneen in comments to EPA Administrator Scott Pruitt. “In doing so, the agency has sent a positive signal to the marketplace to continue the infrastructure investments necessary to grow the renewable fuel marketplace and expand the availability of gasoline blends containing more than 10 percent ethanol.”

However, RFA is “concerned that EPA’s assessment of ‘reasonably attainable’ renewable fuel levels in 2018 continues to inappropriately rely on demand-side factors, which is clearly barred by the recent decision by the U.S. Court of Appeals for the District of Columbia. We encourage the agency to adopt the intended approach of simply evaluating the physical supply of renewable fuels (and RINs) available to obligated refiners, blenders and importers relative to the statutory volume requirements,” Dinneen noted in comments.

In EPA’s initial May draft that it sent to the White House Office of Management and Budget, the proposed RVO requirements were 384 million gallons of cellulosic biofuel; 4.38 BG of advanced biofuel; and 19.38 BG of total renewable fuel, higher than what the agency ultimately proposed in July. In comments, RFA urged EPA to finalize the requirements that were initially proposed.

On cellulosic biofuel, RFA urged the agency to use projections that reflect new and emerging technologies. EPA’s proposed approach for assessing available cellulosic biofuel supplies “pessimistically assumes new and emerging cellulosic biofuel facilities and technologies—including cellulosic ethanol from corn kernel fiber—will not produce any material volume in 2018,” wrote Dinneen. “This backward-looking methodology ignores marketplace realities and turns the market-driving purpose of the RFS on its head. EPA should abandon its proposed approach for projecting likely volumes of cellulosic biofuel and return to the methodology used for the 2016 and 2017 RVO rules (and early drafts of the 2018 RVO proposed rule).”

”RFA strongly recommends that EPA finalize the RVO levels that were included in early drafts of the 2018 proposed rule submitted to the White House Office of Management and Budget….Restoring the 2018 RVOs to these levels would support Congressional intent by returning the RFS program to a growth trajectory and driving continued investment in the biofuel sector,” Dinneen added in his comments.



ASA Asks EPA to Increase Biodiesel RFS Volumes

In comments submitted to U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt today, the American Soybean Association (ASA) urged EPA to increase the volumes for biomass-based diesel to 2.5 billion gallons for 2019, an increase of 400 million gallons over the levels in the EPA proposal, yet still below the amount utilized in the U.S. in 2016.

“Biodiesel has expanded markets for farmers and livestock producers and created new jobs and economic growth, particularly in rural America,” said Ron Moore, ASA President and Illinois soybean farmer.

In addition to expanding markets for U.S. farmers and ranchers, biodiesel provides additional economic, energy security, and environmental benefits.

“The EPA and the Administration are missing an easy opportunity to help the agriculture and rural economy,” Moore added. “Given the many benefits that biodiesel provides, EPA should enthusiastically support higher, but easily achievable, volume targets for biomass-based diesel and advanced biofuels. An increase of biomass-based diesel volume requirements to 2.5 billion gallons in 2019 and the advanced biofuels volumes to 4.75 billion gallons in 2018 is achievable and warranted. There is idle domestic production capacity and ample, price competitive feedstock available to supply increased domestic biodiesel production.”

In the comments, ASA pointed to the important market that biodiesel provides as an outlet for increasing soybean oil supplies resulting from increased demand for soybean production to meet protein meal demand.

“Biodiesel production creates a value-added market for the co-product soybean oil generated by the growing global demand for protein meal. Without growing markets for the oil, U.S. farmers will not be able to maximize the opportunities being created by protein demand,” Moore said. “Soybean farmers have met the increased demand for protein meal and done so with increasing efficiency and sustainability. Since 1980 U.S. soybean farmers have increased production by 96 percent while using 8 percent less energy; land use per ton of soybean production has decreased by 35 percent; and greenhouse gas emissions have decreased by 41 percent per ton.”

The U.S. soybean harvest in 2016 was a record 4.3 billion bushels and plantings in 2017 are estimated at a record 89.5 million acres. Modeling indicates that these additional supplies support the increased biomass-based diesel and advanced biofuels volume levels and feedstock prices would still be less than their five-year average.



NBB: RFS Proposal Runs Counter to Congress's Intent; Volumes Should Be Higher

Today the National Biodiesel Board (NBB) formally called for higher volumes of advanced biofuels and biomass-based diesel. Representing more than 150 members and 64,000 jobs, NBB submitted comments on the U.S. Environmental Protection Agency’s (EPA) proposal on the advanced biofuel standard for 2018 and the 2019 volume for biomass-based diesel under the Renewable Fuel Standard (RFS).

“NBB is extremely concerned with the proposed rule’s unprecedented cut to the advanced biofuel volume and freeze in the biomass-based diesel volume. Both of these proposals run counter to Congress’s objectives to promote the growth of biofuels that provide American jobs, reduce emissions and enhance U.S. energy security. EPA cannot enact its own policy when Congress has spoken, so we look forward to working with the EPA on addressing these concerns,” said Doug Whitehead, chief operating officer at the National Biodiesel Board.

Biomass-based diesel has been a great success story of the RFS. Assisted in its development by the market incentive from both the biomass-based diesel volume and advanced biofuel volume, the biomass-based diesel industry has grown to support more than 64,000 jobs throughout its supply chain. The industry also provides benefits to American farmers and livestock producers by creating demand for the surplus oils from commodity crops and reducing the price of soybean meal.

The industry has routinely surpassed the annual biomass-based diesel volumes and currently comprises the vast majority of advanced biofuel production (roughly 93 percent). Unfortunately, EPA’s proposal would halt the progress of the biomass-based diesel industry and thwart Congress’s intent to increase advanced biofuel production. For the first time, the proposed rule lowers the advanced biofuel volume from the previous year and does not increase the biomass-based diesel volume.

“The proposed rule sends a chilling message that EPA is not interested in promoting growth in biofuels in accordance with the RFS, which will discourage any future investment and cause a contraction in the industry. It will result in a blow to our country’s energy security, a loss of jobs and wages of employees concentrated in rural areas, and a reduction in the income that American farmers receive for their crops and livestock products,” NBB writes in its comments.

NBB suggests the proposal’s volumes be changed more in line with Congressional intent. In its comments, NBB calls on EPA to increase the advanced biofuel volume for 2018 to at least 4.75 billion gallons and the biomass-based diesel volume for 2019 to at least 2.5 billion gallons. Doing so is necessary to effectuate Congress’s intent to “create incentives to increase renewable fuel supplies and overcome constraints in the market” and to respect EPA’s methodology from its own past rules. Raising the advanced biofuel volume to at least 4.75 billion gallons is an increase that could be achieved so easily by the industry that there is no non-arbitrary justification for EPA to set the volumes lower.

An agricultural and biofuels model designed by World Agricultural, Economic, and Environmental Services (WAEES) demonstrates that a 4.75 billion gallon volume could be readily achieved with minimal effects on RIN prices and feedstock prices—the two primary potential impacts EPA has described in its proposed rule.  Anything below an advanced biofuel volume of 4.75 billion gallons would both disregard Congress’s express objective of promoting growth in advanced biofuels and significantly harm those who have relied on EPA’s prior rules that set the advanced biofuel volume based on “reasonably attainable” levels.

As for the biomass-based diesel volume, EPA does not contend that there is any obstacle to biomass-based diesel production greater than 2.1 billion gallons; to the contrary, it concedes that greater production is possible. EPA acknowledges that a volume of 2.5 billion gallons is “reasonably attainable” in its analysis of advanced biofuels. In fact, the achievability of 2.5 billion gallons has already been demonstrated in practice because the industry has already exceeded that volume in 2016. 

And any increase in the biomass-based diesel volume from the proposed rule would have significant and concrete benefits in terms of jobs, agricultural income and energy security. When the benefits that Congress sought can be achieved by the industry, EPA cannot choose to ignore them based on its own policy preferences. 

There has been no reduction in capacity or infrastructure that would indicate the biomass-based diesel industry cannot continue the sustained growth it has already achieved. To the contrary, the biomass-based diesel industry has demonstrated that it can rapidly innovate and grow when the volumes under the RFS provide a sufficient market incentive.

Thus, EPA is not being forced to stop increasing the advanced biofuel volume or biomass-based diesel volume based on new developments suggesting that further increases are not possible. Instead, the agency is choosing to step away from the intent of the RFS based on its own preferences. There is no justification to do so when the biomass-based diesel industry has been consistently meeting annual volumes and furthering Congress’s objectives in the RFS.  

NBB will continue to work with EPA to address these concerns and to raise the volumes in the final rule expected this fall.



Farm Bureau Calls on EPA to Up the Advanced Biofuels Requirement for 2018

The American Farm Bureau Federation is giving the Environmental Protection Agency a thumbs-up for its proposal to keep the 2018 conventional biofuels level at 15 billion gallons, as called for in the Renewable Fuel Standard. At the same time, the organization warned that EPA’s plan to reduce the level of required advanced biofuels in the nation’s fuel supply will undermine the goals set by Congress to create a more robust renewable fuels industry and greater energy independence.                                  

“Renewable fuels have been a tremendous success story for the country and for the rural economy. The Renewable Fuel Standard has reduced our country’s dependence on foreign crude oil, reduced air pollution, increased farm incomes and provided good-paying jobs in rural America,” Dale Moore, AFBF executive director of public policy, noted in comments to the agency.

EPA’s proposal includes an overall 2018 biofuel mandate of 19.24 billion gallons, with 15 billion gallons of that in conventional biofuels, or ethanol, and 4.24 billion gallons in advanced biofuels.

EPA’s intention to reduce the 2018 requirements for advanced renewable fuel to 4.24 billion gallons, down from 4.28 billion gallons this year, not only dampens the prospects for reduced emissions and increased energy security, but also inhibits investment in cleaner, domestic fuels and the infrastructure needed to accommodate higher biofuel blends—all of which are goals of the RFS.

“The RFS was designed to give American consumers more choices at the pump and lower gas prices, and to utilize biofuel as more than just a gasoline additive with octane-boosting value. But EPA’s 2018 proposal fails to send the signal to the industry that greater infrastructure investment is needed and meaningful marketplace changes need to occur,” Moore said.

Farm Bureau is urging EPA to set the advanced biofuel requirements for 2018 at 5.25 billion gallons and the biomass-based diesel volume for 2019 at 2.75 billion gallons.

EPA intends to finalize the rule by Nov. 30.



NFU to EPA: Stand With Farmers and Consumers on RFS;

For the past decade, the Renewable Fuel Standard (RFS) has been a boon to American-grown renewable energy development, thereby expanding markets for family farmers, creating jobs in rural communities, shoring up American energy independence, and cleaning up the environment.

So when the U.S. Environmental Protection Agency (EPA) issues new renewable fuel volume obligations this November, they must continue to build on the success of the RFS, says National Farmers Union (NFU) President Roger Johnson. In public comments filed to the EPA today, Johnson urged the agency to issue RFS volume obligations that expand markets for higher blends of ethanol and advanced biofuels.

“The RFS has provided tremendous benefits to American family farmers, rural residents, consumers and the environment for the past decade, ” said Johnson. “If the EPA upholds Congress’ intent to institute a market-driving renewable energy policy, the RFS will continue to pave the way for America’s transition to a renewable energy future.”

In his comments, Johnson called on the EPA to improve on their proposed volume obligations from July. While the proposal maintained conventional biofuel levels, it lowered requirements for advanced biofuels.

“President Trump and his administration have assured family farmers and rural residents that this administration plans to support biofuels and uphold the intent of Congress as it relates to the RFS,” noted Johnson. “While we appreciate that EPA’s proposal maintains the implied conventional biofuel RFS volume at 15 billion gallons, the agency continues to consider 'constraints' on ethanol use, when it should continue to support ongoing efforts to increase use of higher ethanol blends in this country.”

“In addition, EPA’s proposal significantly reduces the statutory volume for advanced biofuels and, thereby, the total renewable fuel volume,” Johnson continued. “As such, the overall proposal falls short of preserving the integrity of the RFS – which is to drive the biofuels market and grow the industry.”

“As family farmers navigate a severely depressed farm economy, this is a time the administration should be raising expectations for a policy that drives many economies in rural America. We urge the administration to increase these proposed volumes and reject any calls to further reduce the required volumes,” he concluded.



Saudi Arabia Nearly Doubles U.S. Corn Imports In 2016/2017
Saudi Arabia has nearly doubled purchased of U.S. corn this marketing year due to a combination of favorable government policy shifts, competitive prices and market development work by the U.S. Grains Council (USGC).

Thus far in 2016/2017 (September-June), Saudi Arabia has purchased 2.07 million metric tons of U.S. corn (81.5 million bushels), up significantly compared to the prior five-year average of 861,000 tons (33.89 million bushels). Saudi Arabia has also ramped up purchases of U.S. ethanol substantially over the last two marketing years, with 2.5 million gallons sold in 2016/2017 plus more than 25,600 tons of U.S. distiller's dried grains with solubles (DDGS), an ethanol co-product.

Changes to local policy have helped spur these shifts. In 2011, the Saudi government added 14 new feed ingredients to the national animal feed subsidy scheme, the major driving force between what types of feed grains, co-products and forages are imported by the Saudi feed, livestock and poultry industries. That new list includes U.S. DDGS and corn gluten feed/meal (CGF), opening the door for increased exports.

A second policy shift in 2016 began the phase out of domestic wheat production, which had been utilized primarily for feed, in order to help conserve Saudi Arabia’s water resources. The policy ends a 30-year program for irrigating domestic wheat production and bodes well for increased U.S. exports of corn and co-products.

This demand potential is huge, but requires extensive market development work. The Saudi dairy industry is one of the most modern in the world and the country’s large poultry industry processes fresh product for domestic use as well as sales to neighboring Gulf countries. While these industries are quick to adopt new technology and ideas, they are still relatively unfamiliar with U.S. co-products. In 2016, Saudi Arabia imported less than 1,000 tons of U.S. CGF and DDGS.

“There is a constant need for market education and customer servicing to address grain quality complaints and the limited knowledge of the U.S. grain marketing and handling system, with key Saudi feed grain importers, end-users and government officials,” said Ramy Taieb, USGC regional director for the Middle East and North Africa.

To accomplish this goal, the Council sponsored a Saudi buyer team to the Council’s biannual Export Exchange in 2016, timed perfectly with the U.S. corn harvest. As a result, the participants reported buying 76,000 tons of corn and DDGS valued at $13 million.

In 2017, the Council continued these efforts with a team in August that brought key feed grain importers and end-users to Illinois, Virginia and and Louisiana to see firsthand U.S. feed grain production as well as meet face-to-face with U.S. suppliers and exporters. The team also learned more about how grain moves through the logistics channels for export markets, quality preservation throughout the supply chain, quality assurance by FGIS, best buying practices and contract specifications.

“Through these activities, the Council is building not just a short-term market, but long-term Saudi confidence in food security through trade,” Taieb said. “We are reassuring this growing market that U.S. corn and corn co-products will be available in abundant quantities at a reasonable price to sustain Saudi meat, milk and egg industries.”



Showcasing Sorghum’s Potential To Feed Catfish In Southeast Asia

The U.S. Grains Council (USGC) and United Sorghum Checkoff Program (USCP) are on the road to demonstrate the potential of U.S. sorghum to supply Southeast Asia’s most affordable protein source - fish.

The Council recently concluded in-country feeding trials to test the viability of substituting sorghum or corn for cassava, with support from the USCP, for Pangasius, a large catfish species native to Southeast Asia. The trials concluded both grains could replace cassava as a source of starch for feeding Pangasius.

Results showed no difference between the sources of starch on growth performance, fillet color or physical properties of feed pellet quality (density and floatability). Beyond starch, sorghum is also low in tannins and contains higher protein than cassava as well as more amino acids (similar to corn), particularly tryptophan and threonine.

The Council and USCP are showcasing these results during travel August 27 to September 2 to Vietnam and Thailand, including to one of the world’s leading seafood trade shows - VietFish 2017. Every year, nearly 200 local and international exhibitors participate in the show, with approximately 30,000 visitors from Vietnam and around the world attending. The Council and USCP are conducting a series of seminars during the tradeshow as well as distributing the trial results at technical workshops and discussions in subsequent visits in Thailand.



Dairy Management Inc. proudly supports Animal Agriculture Alliance’s College Aggies Online

The Animal Agriculture Alliance’s annual College Aggies Online (CAO) scholarship competition begins September 10, 2017 with Dairy Management Inc. (DMI) as its largest supporter.

“We are thrilled to have DMI return as our largest sponsor for this year’s College Aggies Online program,” said Kay Johnson Smith, president and CEO at the Alliance. “DMI brings so much value and excitement to the students participating and we can’t wait to make this year the best yet.”

Collegiate clubs and individuals will compete for more than $16,000 in scholarships and mini prizes while engaging online and in person about food and agriculture. The program presents a unique opportunity for students to network with leaders from a wide variety of companies and organizations representing the animal agriculture community.

In addition to sponsoring, DMI will offer hands-on guidance to students as a mentor throughout the individual competition. Don Schindler, senior vice president of digital innovations at DMI will host a webinar about breaking out of the “ag echo chamber” and how to talk to consumers about agriculture issues, provide feedback on social media posts created by the students and help answer any questions the students may have about effective engagement.

“CAO is one of the best programs out there that helps college students become advocates for agriculture,” said Schindler. “I am proud to be a part of the program on behalf of DMI.”

DMI is not only involved in the individual competition of CAO, but will provide resources and support for the club competition with its “Undeniably Dairy” challenge. For this challenge, clubs will host a booth on their campus and hand out pizza or tacos to fellow students to promote and engage about the nutritional benefits of cheese and dairy while also sharing how dairy gets from the farm to the store. Clubs can also host a booth at an athletic event while handing out chocolate milk for muscle recovery.

DMI has supported CAO for the last three years and is the national checkoff organization promoting dairy farmers and the milk, cheese, yogurt and other foods dairy farmers provide to families.

Collegiate clubs and individuals interested in promoting agriculture and becoming confident communicators are invited to sign up through October 1, 2017 at http://collegeaggies.animalagalliance.org/.

CAO would not be possible without the generous support of our sponsors. 2017 sponsors include: Dairy Management, Inc., the National Pork Industry Foundation, CHS Foundation, Pork Checkoff, Monsanto, Domino’s Pizza Inc., Biotechnology Innovation Organization, Kuhn North America and the Ohio Poultry Association.



Dairy Farmers Launch "Peel Back the Label" Campaign to Expose Deceptive Front-of-Package Food Labeling, Highlight Need for Responsible Food Marketing

As food manufacturers increasingly turn to fear-based food labeling to prop up profits and consumers face more confusion in the grocery aisles, America’s dairy farmers today launched “Peel Back the Label,” a new campaign to highlight this troublesome trend and stress the need for truth and transparency in food marketing.

The campaign comes as almost 70% of consumers say they look to front-of-label claims when making food purchasing decisions, and as food manufacturers increasingly utilize “free from” labels – i.e. ”no high fructose corn syrup” or “GMO free” or “hormone-free”– to play on consumers food safety fears and misconceptions.

Nowhere is this fear-based marketing more rampant than with GMOs. For example:

    Hunt’s adding a “GMO-free” label to its canned tomatoes, even though there is no such thing as a genetically modified tomato currently on the market.

    Florida’s Natural adding a Non-GMO Project certification to its orange juice labels, despite the fact there are no commercially-grown, genetically modified oranges.

     Dannon adding a line of non-GMO yogurt, citing “sustainable agriculture, naturality and transparency,” but unable to point to any nutritional, environmental, health, or other consumer benefit.

    TruMoo milk acknowledges GMOs are safe on its website, while at the same time launching an advertising campaign for its milk with the tagline, “No GMOs, No Worries.”

    Himalania Rock Pink Salt adding a Non-GMO Project certified label, despite the fact that salt – a mineral – could never be GMO in the first place because it has no genes to modify.

“America’s dairy farmers strongly support open, honest and transparent engagement with consumers. The deceptive labels and fear-based marketing increasingly used by some food manufacturers damages consumer trust and jeopardizes the safe, sustainable farming practices that have enhanced farm productivity over the last 20 years,” said Jim Mulhern, President of the National Milk Producers Federation (NMPF). “Consumers have a right to both truth and transparency in food labeling. We launched this campaign to help consumers peel back the label on deceptive food marketing in the name of profits.”

This trend towards deceptive “free from” labels is particularly concerning for the dairy industry. Last year, NMPF and other leading farm organizations publicly raised concerns regarding Dannon’s announcement of its plans to eliminate GMOs from its products – saying the company’s decision was “the exact opposite of the sustainable agriculture that you claim to be seeking.”

Through the Peel Back the Label website, the campaign will give consumers access to the tools they need to separate hype from fact as they work to make informed food decisions for their families. It also will include ways for consumers to tell their own stories about the negative impacts of deceptive labeling, and share information with their social networks.

Concern about deceptive food labeling is widespread, with numerous voices from across the food sector calling out this troublesome marketing tactic. Examples include:

“This trend toward fear-based labeling may help prop up profits for food manufacturers, but it comes at a much greater cost for consumers who are trying to make informed choices for their families. Labels like these make consumers question their understanding of what’s really in their food and how safe it is to eat.” –Kent Messer, The Wilmington News Journal, 6/30/17

“If anything, the scaremongering around GMOs mistreats moms and their families by creating fear and mistrust of the conventional food supply in the absence of any scientific evidence. This can scare mothers on tight budgets to pay money they can’t afford for expensively labeled foods and to avoid fresh produce due to a misplaced fear of pesticides. Praying on a mother’s fears for the safety of her children is the most disingenuous use of marketing that I can imagine. “ –Alison L. Van Eenennaam, BioBeef Blog, 7/7/17

“Unfortunately, food manufacturers are being subjected to great public pressure to go ‘GMO-free,’ with brands like Dannon and Cheerios bowing to the pressure and shifting to sourcing only non-GMO ingredients. If this trend is allowed to continue, the impact on farmers, and in turn the environment, could be monumental. As champions of science continue to make their voices heard, it’s imperative to celebrate and acknowledge the promise of positive change embodied as technology being leveraged in multiple ways. If we allow science its chance at bat, we have a chance to win this.” –Tom Vilsack, The Hill, 4/27/17

“The people who push GMO labels and GMO-free shopping aren’t informing you or protecting you...They use your anxiety to justify GMO labels, and then they use GMO labels to justify your anxiety. Keeping you scared is the key to their political and business strategy.” –William Saletan, Slate, 7/15/15

“What really bothers me as a shopper are the injustices that result from the proliferation of this and other similar anti-GMO marketing...The [Non-GMO Project] seal implies that there are GMO oranges available even though there are no genetically-engineered citrus fruits on the market. Tomatoes, grapes, and sea salt are among several such products that carry the seal even though there are no ‘GMO’ counterparts available.” –Kavin Senapathy, Forbes, 5/31/17

Peel Back the Label is a campaign of America’s dairy farmers and their families. In the United States, 97 percent of dairy farms are family owned, and farmers are committed to producing quality milk for American families, protecting the environment and caring for their animals. Learn more about the campaign at www.PeelBackTheLabel.org.