July Rural Mainstreet Index Shows Strength: Bankers Expect Farmland Price Growth to Fall by Half in Next 12 Months
For the eighth straight month, the Creighton University Rural Mainstreet Index (RMI) remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The overall index for July fell to a healthy 65.6 from June’s strong 70.0. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.
Approximately, 31.3% of bank CEOs reported that their local economy expanded between June and July.
“Solid, but somewhat weaker, grain prices, along with the Federal Reserve’s record-low interest rates, and growing exports have underpinned the Rural Mainstreet Economy. Even so, current rural employment remains below pre-pandemic levels,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Farming and ranching: For a 10th straight month, the farmland price index advanced significantly above growth neutral. The July reading fell to a strong 71.0 from June’s 75.9. This is first time since 2012-2013 that Creighton’s survey has recorded 10 straight months of farmland prices above growth neutral.
This month bankers were asked to estimate farmland price growth for the previous 12 months and for the next 12 months. On average bank CEO’s estimated farmland price growth for the previous 12 months at 5.8%, but projected growth at only 2.4% for the next 12 months. Approximately 46.9% of bankers reported damaging drought conditions for farmers in their area. However, there was significant variation among reports.
The July farm equipment-sales index declined to 67.2 from 71.6 in June. Readings over the last several months represent the strongest consistent growth since 2012.
Below are the state reports:
Nebraska: The Nebraska RMI for July declined to 69.7 from June’s 74.3. The state’s farmland-price index decreased to 73.0 from last month’s 78.0. Nebraska’s new-hiring index rose to 74.1 from 73.8 in June. As a result of recent solid job gains, U.S. Bureau of Labor Statistics data indicate that Nebraska’s Rural Mainstreet nonfarm employment is almost 8,000 jobs, or 2.7%, above its pre-COVID-19 level.
Iowa: The July RMI for Iowa climbed to 64.6 from 63.7 in June. Iowa’s farmland-price index dipped to 67.8 from 72.7 in June. Iowa’s new-hiring index for July decreased to 64.6 from 68.5 in June. Despite recent solid job gains, U.S. Bureau of Labor Statistics data indicate that Iowa’s Rural Mainstreet nonfarm employment remains more than 5,000 jobs, or 0.9%, below its pre-COVID-19 level.
Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities, and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.
This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005 and launched in January 2006.
ENGLER PROGRAM LAUNCHES FELLOW EXPERIENCE
The University of Nebraska–Lincoln’s Engler Agribusiness Entrepreneurship Program has launched its first cohort of the Engler Fellow Experience, which supports aspiring entrepreneurs as they balance the responsibilities of being students and business owners.
Throughout the experience, four Engler Fellows will learn business strategies, including customer discovery, market research and defining the purpose of their business. While fellows are located across the state, the entire group meets weekly over Zoom to share updates on their progress.
Dillion Muirhead, a Valentine native and sophomore agricultural and environmental sciences communication major, is leveraging the Engler Fellow Experience to expand his real estate videography business, DM Creative, to the Omaha and Lincoln areas. Above all, he is grateful for the relationships he has built with other entrepreneurs.
“It’s not easy to run a business and go to college at the same time,” he said. “The community Engler has provided is great at helping you build on the entrepreneurial skills you already have to help you be as successful as possible.”
As part of the experience, each entrepreneur is awarded a $5,000 enterprise grant to cover personal, academic and business expenses. For many, this offers a rare chance to focus solely on the growth of their enterprise.
Miranda Hornung, a senior agricultural education major from Davey, launched her organizational service business in June, and seeks to help families optimize spaces in their homes and offices. The business, MADE by Miranda, strives to “make all days efficient.” Hornung focuses on efficiency, structure and affordability for everything from kitchen cabinets to work-from-home desks.
“I definitely think the provided time and financing are two of the biggest reasons why programs like this are so important,” she said. “I don’t know that I would’ve been able to devote this much time to my business if this had not been available to us.”
Hunter Suchsland of Kearney and Cade Ludwig of Wood River are co-owners of LS Lures, a custom tackle company that specializes in making handmade jigs and lures in a variety of colors and sizes.
Suchsland competes on the university’s Collegiate Bass Fishing Team. Together, the friends and business partners have more than 20 years of experience flipping, pitching and skipping jigs into nooks and crannies at nearby lakes. LS Lures seeks to provide high-quality jigs at a great price.
The Engler Fellow Experience is an innovative approach to invest in one of Nebraska’s greatest assets — its young people. Brennan Costello, Engler’s chief business relations officer, said he believes the program is beneficial to not only the cohort, but the entire state.
“Engler believes in the power of entrepreneurship,” he said. “Anything we can do to create more opportunities for budding entrepreneurs to grow their businesses is better for us and better for Nebraska.”
The Engler Agribusiness Entrepreneurship Program is currently seeking business mentors and sponsors for future Engler Fellow Experiences. To learn about the program and opportunities to invest in aspiring entrepreneurs, contact Costello at bcostello3@unl.edu.
NC Feedlot Council to Meet in Wisner Tuesday Eve
The Nebraska Cattlemen feedlot council will have two meetings next week. The first meeting will be held on Tuesday, July 20th at 7:30 PM CDT at the Wisner Community Center in Wisner, Nebraska. The second meeting will take place on Wednesday, July 21st at 1:00 PM CDT at the Elks Lodge in Cozad, Nebraska. NCBA’s own Tanner Beymer will be joining us at both meetings. He sits on the NCBA policy team as Director of Government Affairs and Market Regulatory Policy. We will be discussing labor issues, cattle markets, and feedlot council engagement.
RSVP would be appreciated but not required. RSVP by email pattygoes@necattlemen.org or 402.475.2333
Ag Land Leasing and Management Workshop
Date: Jul. 28, 2021 Time: 10:30 am–1:30 pm
Platte County Extension
2715 13th St.
Columbus NE 68601-4916
Contact: (402) 563-4901, avyhnalek@unl.edu
Nebraska Extension and the University of Nebraska-Lincoln’s Center for Agricultural Profitability will host a land management workshop in Columbus from 10:30 a.m. to 1:30 p.m. July 28 at the office of Nebraska Extension in Platte County, 2715 13th St.
It will offer updated leasing information relevant to landlords and tenants, including the latest financial trends in Nebraska agriculture, updated land values and cash rental rates for the state, strategies for equitable leasing and farm succession considerations. The latest information on carbon credit contracts for ag producers and landlords will also be discussed.
The presentations will be led by Jim Jansen, an extension educator and agricultural economist, and Allan Vyhnalek, an extension educator specializing in farm and ranch transition and succession.
The meeting is free to attend, but registration is required with Nebraska Extension in Platte County at 402-563-4901. A meal will be provided by Peoples Company. More information is available on the Center for Agricultural Profitability’s website, https://cap.unl.edu.
Ag Estate Planning Q&A Workshop
Date: Jul. 28, 2021 Time: 3:00 pm–5:00 pm
Platte County Extension
2715 13th St.
Columbus NE 68601-4916
Contact: Platte County Extension , (402) 563-4901
Nebraska Extension will hold a question-and-answer session about estate planning for agricultural producers from 3 to 5 p.m. July 28 at the office of Nebraska Extension in Platte County, 2715 13th St., in Columbus.
The session will offer an opportunity for producers to ask questions related to how to plan, start and complete a succession or estate plan. It will be hosted by Allan Vyhnalek, an educator for farm and ranch succession with Nebraska Extension, and Tom Fehringer, a Columbus-based attorney specializing in ag estate matters.
The Q&A is geared toward dairy producers, but anyone considering a farm transition or needing estate planning information is encouraged to attend.
The event is free, but space is limited. Registration is required by July 27 with the Platte County extension office, 402-563-4901.
Nebraska Corn congratulates Gangwish and Wesely on their elections to the NCGA Corn Board
This week, farmers from across the country attended the National Corn Growers Association’s (NCGA) biannual Corn Congress held in New Orleans. During this event, Nebraska corn farmers Deb Gangwish and Dan Wesely were elected to NCGA’s Corn Board. Gangwish is from Shelton and Wesely is from Morse Bluff.
“I am truly honored to have been selected as an NCGA Corn Board member,” said Wesely. “NCGA has cultivated a high level of trust and respect throughout the nation, and I look forward to helping advance the organization. I’m also looking forward to representing my fellow Nebraska farmers on key issues such as ethanol, sustainability and trade.”
Wesely and his wife farm both corn and soybeans in eastern Nebraska. He has a variety of leadership experience at the local, state and national levels. He has served as president of the Nebraska Corn Growers Association (NeCGA). He has been an active member of five different action teams within NCGA, currently serving the Production Technology Access action team.
While this will be Wesely’s first term serving on NCGA’s Corn Board, this latest election leads to a second term for Gangwish who was first elected to the board in July 2018.
“The corn industry changes so quickly, and our industry needs leaders who can adapt quickly and work collaboratively to address important issues,” said Gangwish. “I feel very fortunate and grateful to have served U.S. corn farmers over these last three years, and I look forward to another term to continue the positive work coming out of NCGA.”
On their farm, Gangwish and her husband grow seed corn, field corn, soybeans, grain sorghum, oats, alfalfa, hay and corn silage. They also background cattle and own a trucking company. Off the farm, she is actively involved in agriculture at the state, national and international levels through various organizations, such as NeCGA and the U.S. Grains Council.
Both terms for Wesely and Gangwish will begin on Oct. 1, 2021. The election took place Wednesday, July 14 during NCGA’s 2021 Corn Congress. The event is focused on shaping policy and setting priorities for the U.S. corn industry. Corn farmer delegates from across the country participated in the discussions and election.
The two farmers will join Brandon Hunnicutt, also a Nebraska farmer from Giltner, serving the 15-person Corn Board.
Ricketts: Nebraska’s Strong Economy & Revenues Resulting in Record Property Tax Relief
Today, Governor Pete Ricketts issued a statement following news that final state general fund tax receipts for Fiscal Year 2020-21 grew $958 million above projections. Overall, state revenues grew 19.2% more than previously projected.
“Nebraskans weathered the pandemic with grit and determination,” said Governor Ricketts. “Our economy has powered through the uncertainty of the last year, and that is resulting in significant growth in state revenues. Thanks to LB 1107, which I signed into law last year, higher state revenues have created record property tax relief for our farmers, ranchers, homeowners, and small businesses.”
LB 1107, which was passed and signed into law in 2020, created the Property Tax Incentive Credit. In its first year, the credit was worth $125 million. Taxpayers received the credit when they filed their state income taxes this year. Next year’s credit will be worth over $548 million thanks to higher revenues.
In addition to the Property Tax Incentive Credit, the State of Nebraska’s budget also includes $300 million in direct relief through the Property Tax Credit Relief Fund and $104 million through the Homestead Exemption. Altogether, the State of Nebraska will provide $952 million in direct property tax relief to offset local property taxes in Fiscal Year 2021-22.
Statement by Mark McHargue, President, Regarding Unprecedented Property Tax Relief
“Today is a good day for all Nebraskans who have continued to bear the brunt of high property taxes, particularly our state’s farm and ranch families. This morning’s announcement by the Nebraska Department of Revenue shows that state revenue numbers will boost property tax relief even more with the Property Tax Incentive Credit. Nebraska Farm Bureau estimates taxpayers will see a tax credit equal to 22 percent of their property taxes paid to schools when they file their 2021 tax return. This is 3.5 times the amount they received this tax year.”
“Nebraska Farm Bureau was proud to have been recognized by Gov. Ricketts for its efforts to secure the passage of LB 1107 in 2020. This was a priority bill for Nebraska Farm Bureau, which allowed Nebraskans to claim, for the first time, the new income tax credit based on the property taxes they pay to K-12 schools.”
“This is a big ‘win’ for property taxpayers who’ve been seeking relief. We look forward to continuing to work with the governor and the Legislature to move Nebraska in the right direction in lowering some of the highest property tax burdens in the nation.”
12 State Members of the Hypoxia Task Force Request Additional Support to Continue Advancing their Nutrient Reduction Strategies
Iowa Secretary of Agriculture Mike Naig, co-chair of the Gulf of Mexico Hypoxia Task Force (HTF), and representatives from 11 other member states, sent letters to the U.S. Senate and House appropriations and relevant policy committees today. In the letters, the HTF states requested that Congress continue streamlining programs, limiting regulatory burdens and renewing federal appropriations to help local leaders continue advancing their nutrient reduction strategies.
“The HTF states are committed to showing improvement in water quality in our local communities and downstream. At the state level, we have dedicated staff that are working every day alongside local, federal, public and private partners to tackle this complex challenge,” said Secretary Naig. “The states are implementing science-based soil health and water quality practices in targeted watersheds because we know that changes on the landscape lead to changes in the water. Land-based conservation practices capture and treat nutrients very effectively but they require significant engineering, construction and financial resources to build. That’s why we’re asking Congress to advance programs that help maximize state and local investments in soil health and water quality practices.”
In the letters to Congress, the HTF states wrote, “while important strides in conservation practices and point and nonpoint source loading reductions have been achieved, attaining the goals we have collectively set for reducing nutrient-loading through the Gulf Hypoxia Action Plan will require acceleration of its implementation through expanded regional collaboration among farmers, municipalities and conservation interests.
“We appreciate the financial and technical support from USEPA, NRCS and NOAA over the past decade to aid in the states’ development of the nutrient reduction strategies. However, resources focused specifically at nutrient-reduction actions continue to be the limiting factor in reaching the goals established in the Action Plan.”
The HTF states also asked the Congressional committees “to ensure that any legislation introduced to address the important needs for improving water quality in the Basin and Gulf also include fiscal support for each state’s nutrient reduction strategies in support of the Gulf Hypoxia Action Plan.”
The HTF is a partnership of 12 states and five federal agencies that work collaboratively to support efforts that reduce nutrient-loading throughout the Mississippi River Basin and the size of the hypoxic zone in the northern Gulf of Mexico. The HTF Action Plan has a near-term target of reducing nutrient-loading to the Gulf from the basin by 20 percent by 2025, and a long-term goal of limiting the Gulf hypoxic zone to an average annual size of less than 5,000-square kilometers by 2035, subject to the availability of resources.
Iowa Corn Farmers Take Priorities to Corn Congress
Iowa Corn Growers Association® (ICGA) farmer-leaders attended the National Corn Growers Association (NCGA) Corn Congress meetings this week to advocate for key agricultural issues and priorities.
During Corn Congress, Iowa farmer-leaders met with ag committee staff to express the tax issues being debated that could devastate family farms. Additionally, delegates met with the U.S. Department of Agriculture (USDA) to ask that Farm Services Agency (FSA) offices be open and fully staffed to best support corn farmers.
“This year’s NCGA Corn Congress was a success as there were policy priority discussions and packed agendas for the action team meetings where Iowa has representation on each of these teams,” said ICGA President Carl Jardon, a farmer from Randolph, Iowa. “Typically, this meeting is held in Washington D.C. along with Hill visits, due to the timing and uncertainty of the pandemic, we met in Louisiana. We will be participating in virtual Hill visits with our Iowa delegation as well as legislators from across the country next week to advocate for NCGA policy priorities for our nation’s corn farmers.”
Additionally, NCGA delegates elected Bob Hemesath from Winneshiek County to the NCGA Board for a three-year term. Hemesath will join the Corn Board alongside Chris Edgington from Mitchell County who will serve as NCGA President for Fiscal Year 2022 that begins October 1, 2021. Directors Bruce Rohwer of O’Brien County and Kevin Ross of Pottawattamie County will retire from the NCGA Corn Board at that time.
“It’s an honor to be elected to the NCGA Corn Board as I am looking forward to working for Iowa’s corn growers and the nation’s corn growers to maintain and develop new markets for corn and corn products,” said Bob Hemesath a farmer from Decorah, Iowa.
The NCGA Corn Board represents the organization on all matters while directing both policy and supervising day-to-day operations. Board members represent the federation of state organizations, supervise the affairs and activities of NCGA in partnership with the chief executive officer and implement NCGA policy established by the Corn Congress. Members also act as spokesmen for NCGA and enhance the organization’s public standing on all organizational and policy issues.
Learn about Kernza: The Novel Grain that Improves Soil Health
The Iowa Learning Farms conservation webinar taking place July 21 at noon will feature Manbir Kaur Rakkar, postdoctoral associate at the University of Minnesota – Twin Cities. The focus of Rakkar’s research is related to taking an interdisciplinary approach to improving soil health.
In the webinar “Improving Soil Health with a Novel Perennial Grain Crop,” Rakkar will introduce the audience to Kernza, a novel perennial grain that is showing potential to improve soil health while still producing a useable grain crop. She will discuss the soil health benefits and agronomic feasibility of using Kernza during an organic transition period.
“As some current cropping systems continue to affect soil health, it is important to look at alternative methods that may be adopted to reverse ongoing soil and environmental degradation,” said Rakkar. “Kernza is one viable option to mitigate soil health and environmental problems.”
Webinar Access Instructions
To participate in the live webinar, shortly before noon CDT July 21:
Click this URL, or type this web address into your internet browser: https://iastate.zoom.us/j/364284172.
Or, go to https://iastate.zoom.us/join and enter meeting ID 364 284 172.
Or, join from a dial-in phone line. Dial +1 312 626 6799 or +1 646 876 9923 with meeting ID 364 284 172.
The webinar also will be recorded and archived on the Learning Farms website, so that it can be watched at any time.
A Certified Crop Adviser board-approved continuing education unit has been applied for, for those who are able to participate in the live webinar. Information about how to apply to receive the CEU will be provided at the end of the live webinar.
Summer Farm Show Attendance Expected to Rival Pre-Pandemic Numbers
As the agriculture industry continues to prepare for a return to live events and farm shows this summer, Farm Progress - the 180-year-old agriculture publisher and farming information powerhouse - says that all signs point to a strong rural economy and even stronger interest from ag business leaders, as well as farmers, in getting back together at in-person events.
“The ag community has not come together in person since early 2020,” said Don Tourte, senior vice president of sales and events with Farm Progress. “Our surveys show that up to 85 percent of farmers who have visited Farm Progress Show or Husker Harvest Days in the past four years intend to visit in person again this year.” Farm Progress Show will be held in Decatur, Ill., August 31 - September 2, 2021, with Husker Harvest Days in Grand Island, Neb., September 14-16, 2021.
Tourte says that several variables, including strong grain prices, record-low interest rates and growing exports, are contributing toward a positive outlook this summer for both farmers and ag businesses alike. “Ag commodities are significantly over breakeven, meaning that farmers have a higher net income in 2021,” said Tourte. “This is good news for farmers and the industry that supports them,” he said. “This year’s summer farm shows offer an excellent opportunity to engage potentially ready-to-buy farmer-customers and provide further exposure to, and consideration for, new products, technologies and brands that are launching for the 2022 crop year.”
AgriMarketing magazine reported on June 22 that their Agri-Marketer Poll showed that a majority of respondents are planning to attend in-person events this summer. When asked, “Would you attend an in-person event in the next three months,” 56 percent of 118 respondents answered yes.
Matt Jungmann, Farm Progress events director, says he is more and more optimistic about how visitors will experience this year’s shows. “There’s lots of excitement, support and anticipation from exhibitors. Farmers in the host states of Illinois and Nebraska are telling me that they’re looking forward to summer farm shows a little differently this year.”
BIF Selects New Board, Officers
The Beef Improvement Federation (BIF) announced new officers and elected new directors June 24 during the group’s annual meeting and symposium in Des Moines, Iowa.
Matt Perrier, Eureka, Kansas, was introduced as the 2021-22 BIF president during the Thursday awards luncheon. Joe Epperly, Albion, Nebraska, is the new vice president. Directors re-elected to serve on the BIF board were producers Gordon Jones, Lafayette, Tennessee, and Kevin Schultz, Haviland, Kansas. Breed association representatives re-elected were Kajal Devani, Canadian Angus Association, and Matt Woolfolk, American Shorthorn Association.
General session presentations as well as the Young Producer Symposium, NAAB Symposium and the afternoon technical breakouts have been posted to BIFSymposium.com. The digital coverage of the 2021 BIF Symposium is sponsored by IGS (International Genetic Solutions), a new Patron level sponsor of the BIF Symposium.
During the Symposium, Emily Grund was introduced as the new BIF Executive Assistant. Grund is taking the reins from Lois Schreiner, Frankfort, Kansas, who served as executive assistant from 2002-2020.
“We are excited to have Emily join our BIF team,” says Bob Weaber, BIF Executive Director. “Her previous experience with the Kansas Department of Agriculture and the Kansas State University Animal Sciences Communications Team will make her a valuable asset.”
More than 400 beef producers, academia and industry representatives attended the organization’s 53rd Annual Research Symposium and Convention in Des Moines, Iowa, and another 250 registered to participate online. BIF’s mission is to help improve the industry by promoting greater acceptance of beef cattle performance evaluation.
For more information about this year’s symposium, including additional award winners and coverage of symposium and an archive of the presentations, visit BIFSymposium.com.
The 2022 BIF Convention and Research Symposium will be June 1-4 in Las Cruces, New Mexico.
Program Increases Beef Quality and Consumer Confidence
As the Beef Checkoff celebrates its 35th anniversary, the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, is shining a light on the successful promotion and research programs that drive the demand for beef. Today, we feature the Beef Quality Assurance (BQA) program, which has improved beef quality and increased consumer confidence for more than 30 years.
Managed by NCBA, the Checkoff-funded voluntary BQA program ensures U.S. beef is produced under stringent animal care standards to provide safe, high-quality meat. The BQA program trains farmers and ranchers on best practices and cattle management techniques to ensure their animals and the environment are cared for within a standard set of guidelines across the U.S. beef industry.
“The BQA program exemplifies what we, as beef farmers and ranchers, have always cared about - a commitment to caring for our animals and providing families with the safest and highest-quality beef possible,” said Chris Jeffcoat, Pennsylvania producer and co-chair of the Safety & Product Innovation Checkoff Committee. “Consumers can feel good knowing there’s a national program in place that sets consistent animal welfare and care standards across the beef industry.”
BQA is a comprehensive management program that incorporates responsible production practices in all phases of raising beef cattle. The program couples common sense cattle husbandry techniques with accepted scientific research to help farmers and ranchers raise cattle under optimum conditions. Cattle farmers and ranchers can become BQA certified by either attending a classroom training taught by a network of state BQA coordinators and trainers or completing a series of robust online courses.
BQA programs have evolved to include best practices around good record keeping and protecting herd health, which can result in more profits for producers. When better quality cattle leave the farm and reach the marketplace, the producer and consumer benefit. And, when better quality beef reaches the supermarket, consumers are more confident in the beef they are buying, and this increases beef consumption. For example, beef graded in the top USDA grades of Prime or Choice has increased 31% since the BQA program started.1 And, with more than 85% of the beef supply in the U.S. today coming from a BQA certified farmer or rancher, consumers should have the utmost confidence in the beef they purchase.2
Over the years, BQA has expanded to include Transportation and Stockmanship & Stewardship programs. The proper handling and transport of cattle can reduce sickness in calves, prevent bruises, and improve the quality of the meat from these animals, saving the beef industry millions of dollars each year. When a livestock hauler participates in the program, they are also showing consumers they are ready to take every step possible to keep cattle as healthy and safe as possible. Stockmanship and Stewardship is a unique two-day educational experience featuring low-stress cattle handling demonstrations, educational sessions, facility design sessions, and the events provide an opportunity for attendees to become BQA certified.
To celebrate the accomplishments of outstanding beef producers, marketers and educators that best demonstrate animal care and handling principles as part of the day-to-day activities on their respective operations, the National BQA Award was developed. These annual awards recognize those who demonstrate a strong desire to continually improve BQA on their operations while encouraging others to implement the producer education program.
The BQA program will continue to evolve and adapt to meet the changing needs of both producers and consumers, but it will always be focused on the goal of producing the highest quality cattle and providing consumers with the best possible eating experience, because “The Right Way is the Only Way.” For more information, visit www.bqa.org.
Soy Checkoff Investments Work to Increase Profitability for U.S. Soybean Farmers
The 78 farmer-leaders of the United Soybean Board (USB) approved new projects designed to drive innovation, increase value and create additional demand for U.S. soybeans — ultimately increasing profitability for U.S. soybean farmers. During the organization's summer board meeting, July 14-15 in St. Charles, Missouri, leaders approved 181 new checkoff-funded projects with a total budget allocation of $78M, for the 2022 fiscal year, starting October 1, 2021.
“Over these past 30 years for the checkoff, our farmer-leaders have created a strong foundation for success, and we continue to build upon this progress by developing new and diversified opportunities for U.S. soy,” said Dan Farney, USB Chair and soybean farmer from Morton, Illinois. “Every dollar we invest in the soy checkoff returns over $12 in added value to our product. That investment improves the value and marketability of U.S. soy and ensures a viable future for all U.S. soybean farmers for generations to come.”
Projects are considered and reviewed based on alignment with the checkoff’s overall objectives for supply, marketplace and demand across the target areas of soybean meal, oil and sustainability.
“U.S. soybean farmers remain steadfast and resilient in their pursuit to produce sustainable, high-quality soybeans that are preferred by customers domestically and all over the world. This is no surprise, as they have always assertively and strategically managed to deliver a ‘better every day’ mentality. This, in turn, raises the bar for everyone down the supply chain,” said Polly Ruhland, USB CEO. “And like those farmers, the soy checkoff continues to push forward, through challenges and opportunities, to enhance the soybean components, chart new uses and new markets and provide production research insights that bring value to the farm and increase farmer profitability.”
Investments prioritized across target areas by USB’s farmer-leaders include the following examples:
Supply Oil: This includes a focus on recouping lost demand in the edible soy oil market and expanding to markets elsewhere by supplying high oleic soybean oil. For example, to expand the high oleic/low linolenic germplasm, USB investments are focused on building a foundation of material containing the four genes needed for these soybean varieties. It offers the food market and industrial end-users a high-value, market-driven and functional soybean oil, while offering a solution to trans-fats food labeling rules. With the intent to increase profits for growers by offering a value-added product, these non-GMO SOYLEIC™ traits will be bred to further yield increases, defensive packages, herbicide tolerance and varieties that are ready for scaling and commercialization. USB will invest up to $16.9 million across 65 projects in the Supply Action Team across meal, oil and sustainability.
Marketplace Sustainability: This includes a focus on driving the sustainability and transparency attributes of U.S. soy to meet end user demand. For example, USB is exploring the potential of building traceable supply chains through a credible, accurate, and trustworthy tool. As part of this model, farmers would exercise control of their farm data, while providing assurance to domestic and international buyers that products containing U.S. soy are not associated with various negative environmental impacts. Additional considerations that USB is analyzing include tracking progress against companies’ responsible sourcing commitments and identifying soy farmers aligned with their responsible sourcing goals. USB will invest up to $11.4 million across 37 projects in the Marketplace Action Team across meal, oil and sustainability.
Demand Meal: This includes a focus on ensuring that soy’s No. 1 customer, animal agriculture, remains a vibrant industry. Animal protein demand ultimately drives growth in U.S. soybean meal sales due to it being a high-quality feed ingredient that’s rich in amino acids and other nutritional characteristics. For example, driven primarily by animal agriculture demand, the soy checkoff is accelerating work in animal and aquaculture health and nutrition to build demand and create preference for U.S. soy. The soy checkoff also works with partners on soybean quality improvement to meet animal agriculture demand and to better understand regional variation in soybean composition for diverse end uses. In addition, the soy checkoff also partners with United Soybean Export Council, World Initiative for Soy in Human Health, USA Poultry and Egg Export Council and U.S. Meat Export Federation to grow overseas demand for soy and value-added soy products like meat and poultry. USB will invest up to $49.7 million across 79 projects in the Demand Action Team across meal, oil and sustainability.
“The shared goal of all selected proposals is to strengthen U.S. soy’s reputation and competitive advantage when it comes to nutrition, quality and sustainability,” said Farney. “I’m proud of our farmer-leaders and the work they’ve done to maximize profitability for all U.S. soybean farmers.”
Visit unitedsoybean.org to learn about key investments made on behalf of soybean farmers.
ACE Conference Breakout Sessions Explore Key Industry Issues
The American Coalition for Ethanol (ACE) 34th annual conference coming up August 18-20 in Minneapolis offers a variety of breakout sessions covering the latest in technology updates, strategic planning advice, and ways to make ethanol plants more profitable. The breakout sessions will be held concurrently in three rounds on the afternoon of Thursday, August 19, following the morning general session panels.
“Our conference theme is ‘Accelerate,’ which aligns with the membership initiative we launched this year that builds upon ACE’s work to increase demand and value through new clean fuel policies, protect and support existing policy-driven markets, and develop domestic and international markets,” said Shannon Gustafson, ACE Senior Director of Operations and Programming. “This year’s breakout sessions will explore a variety of technologies, strategies, and practices that complement these efforts to help producers accelerate this industry to the next level.”
Breakout sessions include:
Planning for the Future Boards, Employees, Products — K·Coe Isom
What does strategic planning really mean and ways to be successful, including ideas ethanol producers can incorporate and not have it feel like such an undertaking.
Insights on Carbon: Navigating Verification and Measuring Project Value — Christianson PLLP
Best practices to help the ethanol industry understand how to set up and monetize projects that capitalize on carbon-focused incentive programs and tax credits.
Destination Biocampus – Fluid Quip Technologies
Paths to a biocampus and a sustainable, future proof strategy every ethanol facility can use to find the niche of sustainable products and technologies that provide diversification and revenue generation.
Leading in an Era of Exponential Change — K·Coe Isom
How to address changes in the workplace and in leadership needed to navigate our new reality.
Developing a Carbon Strategy — P&E Solutions LLC, Bioleap Inc., Whitefox Technologies
Unique approaches to reducing an ethanol plant’s carbon intensity (CI) score, allowing producers to take advantage of current and future carbon markets.
Efficient Operational Strategies for Feed Diversification and Lower Carbon Intensity Score for Ethanol Biorefineries — ICM Inc.
Sustainable strategies that translate into operational savings, lower energy consumption and CI improvements while producing of high-quality feed.
Cutting Through the Noise with Compelling Communication Strategies — WriteOH, ACE
Practical tips on positive public relations tactics with an emphasis on what can be done at the local level.
Calculating Your Carbon Intensity — Ron Alverson, ACE Board Member/Director, Dakota Ethanol
A walkthrough of how to use a new, online “Carbon Intensity Calculator,” a tool developed by ACE to help ethanol producers calculate their plant’s CI score and why it’s important for plants to know their CI score.
Balancing Efficiency and Economics Through Optimization and Process Improvements –Phibro Ethanol, CTE Global
Approaches to optimizing an ethanol plant’s potential; Phibro through a holistic approach to microbial management, and CTE through the application of their data-driven strategies platform to inform process optimization for improved starch conversion.
To register for the event and learn more about these sessions and others, visit ethanol.org/events/conference. Make hotel reservations by Monday, July 19 to receive the discounted ACE conference group rate.
USDA Awards $12 Million in Record-Breaking Farm to School Grants, Releases New Data Showing Expansion of Farm to School Efforts
The U.S. Department of Agriculture (USDA) is investing $12 million in Farm to School Grants this year, announcing awards to 176 grantees, the most projects funded since the program began in 2013. The department is also releasing new data demonstrating the recent growth of farm to school efforts nationwide. Nearly two-thirds (65%) of school districts and/or local entities responsible for school meals participated in farm to school activities during school year 2018-2019, more than half (57%) of which began within the past three years.
“Helping schools expand access to healthy, locally grown produce through these grants is just one of the many ways USDA is transforming America’s food system,” said Agriculture Secretary Tom Vilsack. “Not only will this give children more nutritious food options in school, it supports local agriculture economies, while connecting them to the farms and farmers that grow the food we all depend on.”
“The record-breaking Farm to School Grants and new data release today both reflect USDA’s commitment to supporting farm to school efforts as a win-win for all involved,” said Stacy Dean, USDA’s deputy undersecretary for food, nutrition, and consumer services. “We’re excited about the growth in farm to school activity across the country and look forward to seeing the impact of this latest round of grants on children, schools, farmers, and the economy alike.”
This year’s Farm to School Grants will help expand the access to fresh, local foods and hands-on agricultural learning for children across 45 states and the District of Columbia. The awarded projects will serve more than 1.4 million students at more than 6,800 schools. Grantees include schools, state agencies, non-profits, tribal nations, agricultural producers and groups, and – for the first time ever – institutions participating in the Child and Adult Care Food Program and the Summer Food Service Program.
The latest data – released today – from the 2019 Farm to School Census highlight the impact of farm to school efforts on local communities. In school year 2018-2019, school districts purchased nearly $1.3 billion in local fruits, vegetables, and other foods, totaling approximately 20% of all school food purchases. The newly updated Farm to School Census website features state and local breakdowns of participation and spending.
Farm to school efforts introduce more locally grown produce into school cafeterias and expose children to agriculture and nutrition education through hands-on learning. They also provide reliable revenue for American farmers, directly boosting the local economy.
ASA, Business Groups Urge USTR to Not Threaten Vietnam with Tariffs
Along with 70 business groups, the American Soybean Association expressed concern to U.S. Trade Representative Katherine Tai regarding proposed tariffs on Vietnam. The imposed tariffs would respond to a pair of Section 301 investigations initiated under the Trump administration alleging “currency manipulation” and “illegal timber” practices.
In a letter sent to Ambassador Tai on Jul. 14, the organizations strongly urged USTR not to use tariffs in response to either of these investigations. The letter cited that the U.S. Treasury Department’s congressionally mandated “Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States” issued in April concluded there is “insufficient evidence” that Vietnam manipulates its exchange rate. Concerning Vietnam’s questioned logging practices, the groups feel an investigation by the Animal and Plant Health Inspection Service under the Lacey Act would be the more appropriate tool to use and not a Section 301 investigation. Vietnam is a top 10 market for U.S. soy exports and would be a potential target for retaliation from Vietnam.
Krysta Harden Joins FFAR Board of Directors
The Foundation for Food & Agriculture Research (FFAR) is thrilled to announce that Krysta Harden, president and chief executive officer of the U.S. Dairy Export Council (USDEC), is joining FFAR’s board of directors.
“Krysta is a champion for American farmers and sustainable agriculture, particularly in the dairy industry,” said President of Mississippi State University and FFAR Board Chairman Dr. Mark Keenum. “Her knowledge of government and industry will be a welcome addition to the FFAR Board of Directors as we pioneer technologies and practices that support farmer’s livelihoods, environmental sustainability and human health.”
Harden was named president and CEO of the U.S. Dairy Export Council in February, becoming the first female chief executive to lead USDEC since the nonprofit organization’s founding by Dairy Management Inc. (DMI) in 1995.
“It’s an honor to serve on the board of FFAR to help advance its mission of supporting pioneering science that provides everyone access to affordable, nutritious food grown on thriving farms,” said Harden.
Prior to her promotion, Harden served a dual role as USDEC’s chief operating officer while also holding the position of executive vice-president of global environmental strategy for DMI, which oversees USDEC and manages the national dairy checkoff for 34,000 dairy farmers.
On sustainability issues, Harden sees the big picture.
Harden has worked on sustainability issues on behalf of farmers. Before joining DMI, Harden focused on sustainability issues as a vice president for two large companies, spending three years at Corteva Agriscience and another three years at DuPont. She also served as chief sustainability officer with Corteva and DuPont.
Harden also spent seven years working with Vilsack at USDA, nearly three of those years as deputy secretary. She served as Vilsack’s USDA chief of staff and assistant secretary for Congressional relations. At USDA, Harden helped shape agriculture policy and led the implementation of the 2014 Farm Bill, among other accomplishments.
Throughout her career in agriculture, Harden has focused on expanding opportunities for women, young people, immigrants, socially disadvantaged producers, returning veterans and retirees.
“I am delighted to welcome Krysta to FFAR’s Board of Directors. Our board is a critical component of this organization, and we strive to ensure that its members possess the diverse backgrounds and skillsets to lead FFAR into the future. Krysta’s participation on the board bolsters our policy on dairy with sustainability expertise,” remarked FFAR Executive Director Dr. Sally Rockey.
Ice Cream Sales and Production Remain Hot Ahead of National Ice Cream Day
With National Ice Cream Day just around the corner, Americans are lining up at scoop shops and grocery checkout lines at near-record numbers to get their favorite flavors of ice cream. Recent data provided to the International Dairy Foods Association show hard ice cream production for the first five months of 2021 running ahead of last year when hard ice cream production set a five-year high with more than 1 billion gallons produced. Through the first six months of 2021, just as the summer season kicked into high gear, retail ice cream sales (grocery) continued to flex their muscle and were slightly behind 2020’s record highs when shoppers couldn’t get enough of America’s frozen treat.
“Ice cream sales set a blazing pace in 2020 and just never let up,” said Michael Dykes, D.V.M., president and CEO of IDFA. “All in all, 2021 is shaping up to be one of the strongest years on record for ice cream production and sales as the U.S. economy opens up and restaurants and food service compete with grocery stores for ice cream sales. Americans love to celebrate National Ice Cream Day every day.”
Ice cream production began its rebound in 2019, according to data from the U.S. Department of Agriculture. That’s when overall dairy consumption in the United States reached an all-time high, led by huge growth in cheese, butter, and yogurt. Since the USDA began tracking per capita dairy consumption in the 1970s, the trend has continued upward for five straight decades, increasing 21% since 1975. Overall, USDA data show American per capita dairy consumption across products consistently increasing each year, with 2019 up 6% over the past five years, 10% over the past 15 years, and 16% over the past 30 years.
This year, National Ice Cream Day will be celebrated on Sunday, July 18th. The tradition began in 1984 when President Ronald Reagan designated July as National Ice Cream Month and the third Sunday of the month as National Ice Cream Day. National Ice Cream Day has been recognized by the President of the United States ever since.
“Everyone knows President Biden is a huge fan of ice cream and we hope to see him enjoying a cone or dish of his favorite flavor on National Ice Cream Day,” said Dykes. “America’s dairy farmers and dairy foods makers are important to our national economy, and they appreciate the President’s support.”
Each year, IDFA releases data and statistics on ice cream. Here are the latest:
IDFA Ice Cream Stats: Ice Cream Sales Are Hot, Continuing Record Pace
In 2020, ice cream makers in the U.S. churned out just over 1 billion gallons of hard ice cream, up 6% from 2019, according to USDA data.
In the first five months of 2021, hard ice cream production was running 4% ahead of 2020 levels, according to USDA.
The return of foodservice has stoked ice cream production. Some IDFA members who supply ice cream to the foodservice sector report sustained double-digit growth in 2021.
Through the first six months of 2021, retail ice cream sales (grocery) continued to flex their muscle and were slightly behind (-2%) the same period from a record 2020 and well above 2019, according to IRI data.
From March through May 2021, sales of frozen novelties like fudgesicles and ice cream bars were a whopping 24% ahead of the same period in 2019.
The average American eats approximately 23 pounds of ice cream each year.
The United States ranks second in global ice cream consumption only to China.
Fortune Business Insights estimates the global ice cream market will reach $91.9 billion in 2027, up from $70.9 billion in 2019—a 30% jump in less than a decade due to the world’s craving for ice cream.
U.S. ice cream makers contribute $13.1 billion to the U.S. economy and support 28,800 dairy industry jobs, according to IDFA’s Dairy Delivers.
The majority of U.S. ice cream and frozen desserts are made between March and August. July is the busiest production month for ice cream makers.
Thomas Jefferson is credited as the first American to write down an ice cream recipe.
IDFA partnered with Research America in 2019 to study U.S. ice cream data and trends.
Nearly two-thirds of Americans rank vanilla as their favorite ice cream flavor. America’s top 10 favorite ice cream flavors:
Vanilla
Chocolate
Cookies N’ Cream
Mint Chocolate Chip
Chocolate Chip Cookie Dough
Buttered Pecan
Cookie Dough
Strawberry
Moose Tracks
Neapolitan
America’s favorite novelty products are:
Sandwiches
Mini cups
Sticks or pops
Cones
Bars
More information about ice cream is available on IDFA’s website: www.idfa.org/news-views/media-kits/ice-cream.
Friday, July 16, 2021
Thursday July 15 Ag News
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