Friday July 23 Cattle on Feed, Cattle Inventory, + Ag News

 NEBRASKA CATTLE ON FEED UP 1%

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.29 million cattle on feed on July 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 1% from last year. Placements during June totaled 415,000 head, down 1% from 2020. Fed cattle marketings for the month of June totaled 555,000 head, unchanged from last year. Other disappearance during June totaled 10,000 head, down 5,000 head from last year.



IOWA CATTLE ON FEED DOWN 5%

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 600,000 head on July 1, 2021, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 3% from June and down 5% from July 1, 2020. Iowa feedlots with a capacity of less than 1,000 head had 480,000 head on feed, down 6% from last month and down 9% from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,080,000 head, down 4% from last month and down 6% from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during June totaled 44,000 head, down 34% from May and down 24% from last year. Feedlots with a capacity of less than 1,000 head placed 44,000 head, down 10% from May and down 12% from last year. Placements for all feedlots in Iowa totaled 88,000 head, down 24% from May and down 19% from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during June totaled 62,000 head, down 16% from May and down 6% from last year. Feedlots with a capacity of less than 1,000 head marketed 72,000 head, up 18% from May but down 26% from last year. Marketings for all feedlots in Iowa were 134,000 head, down 1% from May and down 18% from last year. Other disappearance from all feedlots in Iowa totaled 4,000 head.



United States Cattle on Feed Down 1 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 11.3 million head on July 1, 2021. The inventory was 1 percent below July 1, 2020 (average pre-report estimate was -1.2%). The inventory included 6.98 million steers and steer calves, down 1 percent from the previous year. This group accounted for 62 percent of the total inventory. Heifers and heifer calves accounted for 4.32 million head, down 2 percent from 2020.

On Feed, by State     (1,000 hd - % July 1 '20)
Colorado .........:                1,060            104                   
Iowa ...............:                  600               95                  
Kansas ............:                2,450            103                    
Nebraska ........:                2,290            101                    
Texas ..............:                2,770             95                  

Placements in feedlots during June totaled 1.67 million head, 7 percent below 2020 (average pre-report estimate was -5.9%). Net placements were 1.61 million head. During June, placements of cattle and calves weighing less than 600 pounds were 345,000 head, 600-699 pounds were 260,000 head, 700-799 pounds were 375,000 head, 800-899 pounds were 405,000 head, 900-999 pounds were 195,000 head, and 1,000 pounds and greater were 90,000 head.

Placements by State (1,000 hd - % June '20)
Colorado ..........:               130            74                  
Iowa ................:                 44             76                   
Kansas .............:                430           101                 
Nebraska .........:                415            99                 
Texas ...............:                380            86                   

Marketings of fed cattle during June totaled 2.02 million head, 3 percent above 2020 (average pre-report estimate was +2.3%). Other disappearance totaled 57,000 head during June, 8 percent below 2020.

Marketings by State (1,000 hd - % June '20)
Colorado .......:                  145            91                  
Iowa .............:                    62             94                  
Kansas ..........:                   490           108               
Nebraska ......:                   555           100               
Texas ............:                   450           102                



July 1 US Cattle Inventory Down 1 Percent

All cattle and calves in the United States on July 1, 2021 totaled 101 million head, 1 percent below the 102 million head on July 1, 2020.

All cows and heifers that have calved totaled 40.9 million head, 1 percent below the 41.4 million head on July 1, 2020. Beef cows, at 31.4 million head, down 2 percent from a year ago. Milk cows, at 9.50 million head, up 2 percent from previous year.

All heifers 500 pounds and over on July 1, 2021 totaled 16.0 million head, 1 percent below the 16.2 million head on July 1, 2020. Beef replacement heifers, at 4.30 million head, down 2 percent from a year ago. Milk replacement heifers, at 4.10 million head, up 3 percent from previous year. Other heifers, at 7.60 million head, 3 percent below a year earlier.

Steers 500 pounds and over on July 1, 2021 totaled 14.5 million head, down 1 percent from July 1, 2020.

Bulls 500 pounds and over on July 1, 2021 totaled 2.10 million head, unchanged from previous year.

Calves under 500 pounds on July 1, 2021 totaled 27.4 million head, down 1 percent from a year earlier.

Cattle and calves on feed for the slaughter market in the United States for all feedlots totaled 13.4 million head on July 1, 2021, down 1 percent from previous year. Cattle on feed in feedlots with capacity of 1,000 or more head accounted for 84.3 percent of the total cattle on feed on July 1, 2021, up slightly from previous year. The total of calves under 500 pounds and other heifers and steers over 500 pounds (outside of feedlots), at 36.1 million head, down 2 percent from the 36.7 million head on July 1, 2020.  

Calf Crop Down Slightly
The 2021 calf crop in the United States is expected to be 35.1 million head, down slightly from last year. Calves born during the first half of 2021 are estimated at 25.8 million head, up slightly from the first half of 2020. An additional 9.30 million calves are expected to be born during the second half
of 2021.



Elevated nitrate concentrations in groundwater could pose health risks; water quality resolution tabled by LENRD board

Nebraska’s farmers are growing more with less water and fewer chemicals than ever before.  And yet, we still struggle with the quality of our water in some areas.

Nitrate levels in Nebraska’s groundwater are on the rise, especially in portions of northeast Nebraska.  The Lower Elkhorn Natural Resources District (LENRD) has analyzed the nitrate data gathered from their Groundwater Quality Sampling Program and have found some troubling trends across their 15-county district.

LENRD General Manger, Mike Sousek, said, “An evaluation of water quality data collected over the past 40 years reveals that nitrate concentrations are continuing to increase in some areas.  Most recently, the data indicates elevated concentrations of nitrate in portions of Cuming, Colfax, and Dodge Counties, reaching levels that could pose health risks to humans and threaten the environment.”

During their July meeting, the board discussed the proposed water quality resolution.  This resolution would serve as a statement of commitment from the board to follow when encountering tough issues, such as high nitrate levels in the groundwater.

The agriculture industry depends on clean water, healthy soil, and pure air to supply a growing world with food, feed, and fuel.  Farmers meet daily challenges as they work to protect our resources for future generations.

Sousek said, “We want to work together to make a positive impact on the health of our soils and the quality of our groundwater.  This resolution compliments our 12 responsibilities and shows that this board is supporting local control and supporting the protection of our natural resources as the NRDs have for the past 49 years.”

The board voted to table the resolution until next month.  The discussion will continue at the August 12th committee meeting and the August 26th board meeting.  Visit www.nitrateinwater.org to learn more about high nitrate levels in our groundwater and what you can do to help.

To learn more about the 12 responsibilities of Nebraska’s NRDs and how your local district can work with you and your community to protect your natural resources, visit www.lenrd.org and sign up for our monthly emails.  The next board of directors meeting will be Thursday, August 26th at the LENRD office in Norfolk at 7:30 p.m. and on Facebook Live.



Ricketts Declares State Disaster for Areas Affected by July 9-10 Windstorms

Today, Governor Pete Ricketts issued a disaster declaration in response to the severe windstorms that struck Nebraska on July 9-10, 2021, knocking out electricity and causing extensive damages.  The declaration allows for use of the Governor’s Emergency Fund in response to damage that occurred as a result of storms and high winds that downed power lines and trees and created power outages.  The state declaration is needed to request a federal disaster declaration for public assistance.

The State of Nebraska and local agencies continue to conduct damage assessments.  Once sufficient information is gathered, a request for Federal Public Assistance will be sent to the Federal Emergency Management Agency (FEMA) regional office, then to FEMA headquarters, and finally to the White House for review and approval.

“It is important to note that the phrase Public Assistance refers to assistance for public entities such as utilities and infrastructure,” said Nebraska Emergency Management Assistant Director Bryan Tuma.  “On this event, Nebraska would qualify for the FEMA Public Assistance program but not the FEMA Individual Assistance program.  Individual Assistance is based on extreme impact such as widespread loss of housing for individuals and families, loss of employment, loss of services across multiple sectors which results in extreme hardship, etc.  This event, while significant, does not meet those thresholds.”  

If a person or family needs help replacing spoiled food, removing tree limbs, cleaning up property damage, or has any other unmet needs, they are advised to contact:
·       United Way’s 211 system — Call 2-1-1 or text your zip code to 898211.
·       Nebraska Rural Response HOTLINE — 1-800-464-0258 which offers the same services.
·       Insurance Provider — Many insurance policies include incidentals such as food spoilage, debris management, etc.

County Emergency Management Directors are compiling damage reports and may be aware of additional resources in their local communities to assist individuals or families in need.  Contact information for County Emergency Management Directors is available on the Nebraska Emergency Management Agency website: https://nema.nebraska.gov/overview/county-emergency-management-directorscoordinators.  



NeCGA Strongly Oppose Anti-ethanol Legislation
        
The Nebraska Corn Growers Association recently expressed their strong opposition and frustration with anti-ethanol legislation. The proposed bill titled Corn Ethanol Mandate Elimination Act would remove the conventional ethanol portion of the Renewable Fuels Standard.
 
“It’s unfortunate that Senator Feinstein is out of touch with the proven science of ethanol as well as consumers in her own state,” stated NeCGA president and farmer from Gothenburg Andy Jobman. “Drivers in California have demonstrated strong demand for ethanol and updated analysis by the U.S. Department of Agriculture affirms that corn ethanol has a significant reduction in greenhouse gas emissions as compared to gasoline. With technologies and innovations, including on-farm conservation practices, GHG reductions can easily surpass 50% and could be as high as 70%.”
 
NeCGA will engage with our congressional delegation in strong opposition to the proposed legislation.



Buffer Strip Funds Available

The Nebraska Department of Agriculture has funding available for the installation of buffer strips. Cropland that is adjacent to perennial and seasonal streams, ponds, and wetlands can be enrolled in the program. The program is designed to be used in conjunction with the USDA Conservation Reserve Program (CRP), Conservation Reserve Enhancement Program (CREP), or other programs, however, it can be used by itself as well. In addition to offering rental rates for both irrigated and non-irrigated cropland, and incentives for partnering with other government programs, there are incidental haying and grazing allowances in the Nebraska Buffer Strip Program.

For more information, please go to the NDA Buffer Strip Program site here https://nda.nebraska.gov/pesticide/buffer_strip.html.  



UPDATED - NDOT Announces Hay Permit Applications Accepted Online Beginning July 30

The Nebraska Department of Transportation (NDOT) has announced that, for the first time, hay harvesting permit applications for the public will be accepted through an online application portal beginning July 30 at 7:00 a.m. CDT.

An individual may purchase hay harvesting permits online from July 30 through September 15 on a first-come, first-served basis, with each permit limited to five miles of roadside hay one or both sides. The hay is for private use only and only one permit is allowed per family and only one permit is allowed per person. With the new online option, an integrated online map will be utilized for customers and staff to select miles to mow, and will instantly be updated, showing the miles that are available for sale.
 
This effort by NDOT to move as much of the hay harvesting permit process online as possible involves a two-year phased implementation. This year, landowners were given the choice to renew last year’s permit by mail. Meanwhile, the application has been moved online for public sale, reducing the need for people to come into the office and increasing efficiency.

“We are excited to offer this online option for purchasing hay harvesting permits,” said Tom Sands, NDOT Operations Manager. “This will streamline the process and provide greater convenience for Nebraskans who will be able to apply for hay permits from their homes, without waiting in long lines. Storing all the information in a centralized database will also allow for better record keeping for future renewals and electronic notification.”

The Hay Harvesting Permits Application and Help Docs will be available on the NDOT website. The option to purchase permits from specified NDOT locations will still be available. Please visit ndot.info/haypermit for more information.



Comparing Carbon Credit Programs Is Focus of New Report

With multiple carbon credit options and incentives now available, an economist with Iowa State University Extension and Outreach has compiled a comparison of programs and what is being offered to farmers.

Alejandro Plastina, associate professor in economics and extension economist at Iowa State, compared 11 private voluntary programs, across 26 characteristics, in a new report called “How to Grow and Sell Carbon Credits in US Agriculture.”

The report is featured in the July Ag Decision Maker and was co-written with Oranuch Wongpiyabovorn, graduate research student at Iowa State.

The programs compared include two carbon and ecosystem services credit entities (Ecosystem Services Market Consortium-ESMC and Soil and Water Outcomes Fund), two carbon credit entities (Indigo and Nori), four input suppliers (Agoro Carbon Alliance, Bayer, Corteva and Nutrien), and three data platforms (CIBO Impact, Gradable and TruCarbon).

Comparisons are made on such things as payments per new carbon credit, cost of participation, eligible crops, credit verification and much more.

“We thought that creating these comparisons would serve as a baseline for farmers, policymakers, extension personnel and others, to help understand what is known and unknown at this point,” said Plastina.

As it turns out, Plastina said much is still unknown, or at least it is not yet known publicly.

“What we are seeing so far is more a patchwork than a market,” he said. “There are different rules, incentives and penalties depending on the program. “The market is still in its formative stage and is very dynamic, focused on testing protocols through small-scale pilot programs, and lacks transparency and liquidity.”

According to the report, programs are offering $15-$20 per carbon credit for pilot program participation, and each company calculates credits differently based on a different set of conservation or carbon sequestering requirements.

While most programs pay per carbon credit, some pay per farming practice, and others, such as the Soil and Water Outcomes Fund, pays per acre for selected farms in selected counties, that are making improvements related to carbon, water quality, etc.

Plastina said it’s important to pay close attention to the contracts, especially the length of agreement and practices required. Many are 10-year contracts, outside of the pilot program, which is usually for one or two years.

While all programs require farmers to do something “different” to reduce carbon and receive ecosystem services payments, programs vary according to what exactly they consider “different.” In some cases, it’s a change with respect to what the farmer has done in the past, or a change based on what has been done in a specific geographic area.

He said farmers should also be mindful of future market changes. Although a price might be guaranteed upfront for pilot participation, that price will likely not hold for the duration of the long-term contract.

“Once those pilot programs go away it will be up to supply and demand to determine the price,” he said.

Plastina said he plans to update the comparison as more information is made available. So far, most information is based on what can be found through internet searches.

Webinar opportunity: A webinar about carbon markets and where they currently stand will be offered Aug. 11. The agenda and access information is available in the July Ag Decision Maker https://www.extension.iastate.edu/agdm/info/currentissues.html.



USDA Settles a Packers and Stockyards Case Against Lynch Livestock Inc.

The U.S. Department of Agriculture (USDA) reached a consent decision and order against Lynch Livestock Inc. of Wacoma, Iowa, on July 13, 2021, for alleged violations of the Packers and Stockyards (P&S) Act.

An investigation by USDA’s Agricultural Marketing Service revealed that from January 2018 through December 2020, Lynch falsified the account of purchase provided to hog sellers by manually manipulating the scale at its Wacoma, Iowa, buying station, which caused the scale to record a lower weight for hogs delivered.

Lynch fully cooperated with the investigation and immediately took corrective action prior to entering into the consent decision and order. Lynch is ordered to cease and desist from improperly weighing hogs, creating false scale tickets, and recording false weights on account of purchases. Lynch was assessed a $445,626 civil penalty.

The P&S Act requires subject entities to issue the full payment for livestock by the close of the first business day following purchase and transfer of possession. Failure to timely pay for livestock purchases and failure to issue the full payment for purchases is an unfair trade practice and a violation of the P&S Act.



Celebrate Iowa Fruit and Vegetable Week July 26-30

Iowa's commercial horticulture industry contributes $48 million to the state's economy each year and provides fresh fruits and vegetables to Iowa consumers. Gov. Kim Reynolds recognized the value of this segment of agriculture by designating July 26-30, 2021, as Iowa Fruit and Vegetable Week.

"The Iowa Fruit and Vegetable Growers Association and other organizations, including Iowa State University Extension and Outreach, plan to promote the event through social media outreach and other channels," said Kendra Meyer, Farm, Food and Enterprise Development program education specialist with ISU Extension and Outreach.

The Iowa Fruit and Vegetable Growers Association represents producers statewide, supporting grower education and consumer outreach. Vice president Marcus Johnson owns and operates Buffalo Ridge Orchard near Central City.

"We like being a part of the community and growing food for the community that we live in," said Johnson. "Part of building community is reaching out and letting people know that growers are producing food they can buy at farmers markets and food stores. We want to get that word out, and Fruit and Vegetable Week is a great way to do that."

The governor's proclamation included the request that "local Iowa fruit and vegetable producers receive support and recognition for their achievements by celebrating this week across Iowa."

The most recent statewide survey of commercial horticulture production in Iowa, released in 2017, showed that the top five crops in 2015 were tomatoes, pumpkins, cucumbers, green beans and winter squash. According to the most recent U.S. agricultural census (2017), more than 1,000 farms statewide grow vegetables and an equal number grow fruits.

For information and outreach materials, see additional links and publications below or contact Kendra Meyer at 515-294-9483 or ksmeyer@iastate.edu.



Demand for American Lamb Continues to Rise
 
Consumer demand for lamb increased considerably during 2020. While all meat sales grew in 2020 – as more meals were consumed at home – lamb sales grew at a larger percentage than total meat sales overall.
 
That’s the word from the latest U.S. Retail Sales Report commissioned by the American Lamb Board. The 2021 Q1 report assesses the American lamb market by comparing four-week, 12-week, and 52-week intervals to one year prior. Last year saw a 24.7 percent increase in lamb dollar sales from 2019 and a 17.7 percent increase in pounds sold from 2019. Sales of racks exploded in Q3 and Q4 of 2020. Compared to 2019, rack sales increased 52.8 percent in terms of pounds sold. Sales of ground lamb also saw considerable growth – a 23.7 percent increase in volume sales.
 
As a region, California has seen the most growth since 2019 in terms of both dollar sales (30.6 percent increase) and pounds sold (29.6 percent increase). Nonetheless, the Northeast remains the highest selling region by a significant margin – accounting for 29 percent of all lamb sales in the United States.
 
Lamb retail sales remained strong into the first quarter of 2021. Sales of lamb in Q1 outperformed the same 12 weeks a year ago by a sizable margin: dollar sales increased 19.8 percent and volume sales increased 11.8 percent. Rack sales grew significantly during Q1 (no holidays), increasing by 53.8 percent in volume sales. All cuts of lamb – other than loin chops – saw double-digit growth in dollar sales during Q1 versus a year ago. Loin chops saw only a 5.4-percent increase and its market share of total sales dropped from 31 percent a year ago to 27 percent in 2021.
 
“The report clearly reflects that as consumers gained kitchen confidence during COVID, their willingness to try new products and new recipes increased,” said American Lamb Board Chairman Gwen Kitzan. “Cooking and sharing meals with loved ones has become a form of entertainment for many consumers and many people will continue to prepare more meals at home even as restaurants open up. We will continue to focus on educating new lamb consumers by sharing simple recipes, information about nutritional benefits, ease of preparation, versatility of cuts and cooking techniques, and how American lamb is raised.”