Wednesday July 14 Ag News

 NEBRASKA AG LAND VALUES UP 6% FOR SECOND-CONSECUTIVE YEAR

The market value of agricultural land in Nebraska increased by an average of $2,895 per acre, gaining about 6% for the second-consecutive year, according to the final report from the University of Nebraska–Lincoln’s 2021 Nebraska Farm Real Estate Market Survey.

Rates of increase were highest in the north, northeast, central and southeast districts of the state, with average increases of 6% to 8% over the prior year. Western regions reported smaller increases, between 3% and 5%.

Northeast average - $5765/acre, +7%
East central average - $6840/acre, +5%

The survey revealed that current crop prices, interest rates and purchases for farm expansion contributed to higher land values, as did non-farm investor land purchases and federal farm program payments, according to respondents.

Participants noted that the outlook for future increases in land value remains better than prior years of declining market values. Of the 16 forces measured in the survey, only farm input costs, future property tax policies and property tax levels negatively impacted the market value of land.

The estimated statewide value of center pivot-irrigated cropland rose by about 8% across the state. Dryland cropland values rose by about 6%. Grazing land and hayland market values are about 3% to 5% higher than the prior year.

Final survey results also revealed that rental rates for cropland and grazing land in the state have increased by an average of about 4% to 8%.

The Nebraska Farm Real Estate Report is an annual survey conducted by the university’s Department of Agricultural Economics and published by the Center for Agricultural Profitability. The survey panel of land professionals includes appraisers, farm and ranch managers, and agricultural bankers. Results from the survey are divided by land class and agricultural statistic districts. Land values and rental rates presented in the report are averages of survey participants' responses by district. Actual land values and rental rates may vary depending upon the quality of the parcel and local market for an area.

The final report is available on the Center for Agricultural Profitability’s website, https://cap.unl.edu/realestate.



USDA to Provide Pandemic Assistance to Livestock Producers for Animal Losses

Livestock and poultry producers who suffered losses during the pandemic due to insufficient access to processing can apply for assistance for those losses and the cost of depopulation and disposal of the animals. The U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced the Pandemic Livestock Indemnity Program (PLIP) in [recorded] remarks at the National Pork Industry Conference in Wisconsin Dells, WI.  The announcement is part of USDA’s Pandemic Assistance for Producers initiative. Livestock and poultry producers can apply for assistance through USDA’s Farm Service Agency (FSA) July 20 through Sept. 17, 2021.

The Consolidated Appropriations Act, 2021, authorized payments to producers for losses of livestock or poultry depopulated from March 1, 2020 through December 26, 2020, due to insufficient processing access as a result of the pandemic. PLIP payments will be based on 80% of the fair market value of the livestock and poultry and for the cost of depopulation and disposal of the animal. Eligible livestock and poultry include swine, chickens and turkeys, but pork producers are expected to be the primary recipients of the assistance.

“Throughout the pandemic, we learned very quickly the importance and vulnerability of the supply chain to our food supply,” said Agriculture Secretary Vilsack. “Many livestock producers had to make the unfortunate decision to depopulate their livestock inventory when there simply was no other option. This targeted assistance will help livestock and poultry producers that were among the hardest hit by the pandemic alleviate some financial burden from these losses.”

Additional Assistance Planned
The previous administration proposed pandemic assistance using flat rates across the industry, which does not take into account the different levels of harm felt by different producers. Pork industry supported analysis projected that disruptions in processing capacity in the pork supply chain create a situation with small hog producers and especially those that sell on the spot market or negotiate prices, bear a disproportionate share of losses. USDA has examined the difference between the negotiated prices for hogs and the 5-year average and documented a significant drop during April through September of 2020 due to the pandemic. USDA has set aside up to $50 million in pandemic assistance funds to provide additional assistance for small hog producers that use the spot market or negotiate prices. Details on the additional targeted assistance are expected to be available this summer.

PLIP Program Details
Eligible livestock must have been depopulated from March 1, 2020 through December 26, 2020, due to insufficient processing access as a result of the pandemic. Livestock must have been physically located in the U.S. or a territory of the U.S. at the time of depopulation.

Eligible livestock owners include persons or legal entities who, as of the day the eligible livestock was depopulated, had legal ownership of the livestock. Packers, live poultry dealers and contract growers are not eligible for PLIP.

PLIP payments compensate participants for 80% of both the loss of the eligible livestock or poultry and for the cost of depopulation and disposal based on a single payment rate per head. PLIP payments will be calculated by multiplying the number of head of eligible livestock or poultry by the payment rate per head, and then subtracting the amount of any payments the eligible livestock or poultry owner has received for disposal of the livestock or poultry under the Natural Resources Conservation Service (NRCS) Environmental Quality Incentives Program (EQIP) or a state program. The payments will also be reduced by any Coronavirus Food Assistance Program (CFAP 1 and 2) payments paid on the same inventory of swine that were depopulated.

There is no per person or legal entity payment limitation on PLIP payments. To be eligible for payments, a person or legal entity must have an average adjusted gross income (AGI) of less than $900,000 for tax years 2016, 2017 and 2018.

Applying for Assistance
Eligible livestock and poultry producers can apply for PLIP starting July 20, 2021, by completing the FSA-620, Pandemic Livestock Indemnity Program application, and submitting it to any FSA county office. Additional documentation may be required. Visit farmers.gov/plip for a copy of the Notice of Funding Availability and more information on how to apply.



2021 Forage Field Day events planned for South Dakota, Nebraska

Livestock owners, forage producers, and all those interested in forage production are encouraged to attend the 2021 Forage Field Days, presented jointly by South Dakota State University Extension and Nebraska Extension.   

This year’s events will be held Aug. 4 at the SDSU Southeast Research Farm near Beresford, South Dakota, and Aug. 5 at the UNL Haskell Ag Research Lab near Concord.   

Registration for both events begins at 9:30 a.m., with demonstrations and talks starting at 10 a.m. This year’s program will focus on both annual and perennial forage systems, looking at traditional corn silage, more novel options like small grain silage, and managing alfalfa survivability.   

Experts from Kansas State University, South Dakota State University, the University of Minnesota, and the University of Nebraska-Lincoln will discuss corn silage harvest and storage considerations, silage use in finishing diets, small grain silage options, managing alfalfa under stress, and insurance options for forage crops.  Participants will also be able to participate in demonstrations of silage chop length and packing density as well as use of a shaker box in diet formulation.

Certified Crop Advisor (CCA) continuing education units are available.

The cost to attend is $30, which includes lunch. Walk-ins will be accepted, but to ensure a meal please pre-register by Aug. 28.  Participants can RSVP and pre-pay online by visiting events.unl/extension/upcoming or RSVP and pay day of by calling the Cedar County Extension office at 402-254-6821.  

The Southeast Research Farm is located southwest of Beresford, South Dakota, at 29974 University Road. The Haskell Ag Lab is located east of Concord, Nebraska, at 57905 866 Road. The same speakers and demonstrations will take place at both events.  



The 2021 Nebraska Soybean Board election candidates

The Nebraska Soybean Board will have candidates running for the board in districts 1 and 3 for the 2021 elections. Anne Meis, running for re-election, and Brandon Rosberg will represent district 1. Rebecca Kreikemeier and Ruth Ready will represent district 3.

Ballots will be going out on July 15 in districts 1 and 3. If qualified producers do not receive a ballot by July 19, please call 402-564-5827 and request one. Return ballots should be postmarked by July 30st.

The Nebraska Soybean Board strongly encourages all Nebraska soybean farmers in districts 1 and 3 to vote and to get to know the board members once they take office. Learn more about the candidates below.

DISTRICT 1
Counties of Antelope, Boyd, Cedar, Holt, Knox, Madison and Pierce.

Anne Meis – Elgin, NE – Antelope County
“As a board member, I feel a responsibility to invest your checkoff dollars in programs that will increase the demand and value of our soybeans. I dig deep into proposals for their effectiveness by asking questions, reading outside sources and reviewing past effectiveness. I have been elected as chairwoman of USFRA, which is a national farmer-led organization advancing sustainability leadership of the U.S. food and agriculture sector. I would appreciate your vote to allow me to continue serving soybean farmers in District 1 through my leadership roles at the state and national levels.”

Brandon Rosberg – Bloomfield, NE – Knox County
“I would like the opportunity to serve on the Nebraska Soybean Board to be a voice for all soybean producers in my district and the state. I would like to see more domestic use of soybeans and soybean products here in the United States. While international trade is very important for our products and existing relationships should be maintained and newly cultivated, domestic demand would create a stronger and more consistent market for producers. I would also like to be a voice for financial discipline of producers’ checkoff dollars.”

DISTRICT 3
Counties of Butler, Colfax, Dodge, Douglas, Sarpy, Saunders and Washington.

Rebecca Kreikemeier – Bellwood, NE – Butler County
“I would say my most important concern for the Nebraska Soybean Board would be how we are adapting our current practices and keeping step with the rapidly changing web-based world our farmers are confronted with. We need to look at the world through the eyes of future farmers and not abandon the commitment of excellence of our past producers.”

Ruth Ready – Scribner, NE – Dodge County
“As a member of the Nebraska Soybean Board, I look forward to helping other farmers be successful in their soybean growing and marketing efforts. The Nebraska Soybean Board has much to offer soybean producers, and I would like to help farmers utilize what is available to them. Strengthening connections with other parts of the soybean complex is also of interest to me. All parts of the soybean production, marketing and utilization chain are vital and need to be supported. I hope to be able to help provide that support as part of the Nebraska Soybean Board.”

The district 6 position on the Nebraska Soybean Board will be taken by Larry Tonniges of Utica. He ran unopposed; therefore, no election will be held.

To view farmer biographies and more election info, visit:  nebraskasoybeans.org/your-voting-guide-for-the-nebraska-soybean-board-2021-elections.



HEAT EFFECTS ON ALFALFA
– Melissa Bartels, NE Extension Educator

As we move in to the “dog days of summer”, also known as the extreme heat period, keep in mind that forage plants also must adjust to these temperatures.

When it gets hot, alfalfa plants grow more slowly and moisture stress becomes common, even in moist soil.  Production of high-quality hay is nearly impossible due to the high temperatures, especially when the heat does not subside at night.  High night-time temperatures cause rapid respiration rates in alfalfa, burning off valuable nutrients that plants accumulated during the day.  This often produces alfalfa hay with fine stems that contain high protein, but they also have high fiber and low relative feed value.  So, if your hay tests low, blame the heat.

Another problem with heat, is how fast alfalfa plants mature.  When it is hot, alfalfa may begin to bloom in less than four weeks.  If you use blooming as a signal to harvest, this early bloom can be misleading.  During hot weather alfalfa plants need more time, not less time to rebuild nutrient reserves in their roots because they burn off nutrients instead of moving them to the roots when it is hot.  So, watch the calendar as well as your plants to determine when to cut your alfalfa fields.

You might also adjust the time of day when you cut hay.  Some research has shown that cutting in late afternoon produces higher quality hay than cutting in the morning.  However, on good drying days it may still be wiser to cut in the morning.  When hay in the windrow stays above fifty percent moisture, plant cells continue to respire, burning away nutrients. Hay cut late in the day respires all night long, losing yield and quality. On good drying days, plant cells can dry enough to be stabilized before nightfall, reducing respiration losses.

Getting high quality hay is challenging.  Both you and the weather must cooperate and even then, there are no guarantees.



Big Red Beef Talk Website Release

             Beef Systems Extension Educator, Connor Biehler, has recently released a website that can be found at https://bigredbeeftalk.unl.edu/. The purpose of this website is to provide a hub for southeastern Nebraska beef producers, or those interested in southeast Nebraska beef production. This four-tab website includes everything from blogs and relevant educational materials to current markets and local weather conditions. The bottom of each tab includes news feed of the @bigredbeeftalk twitter page, the BeefWatch YouTube page, and the Saunders County Extension & 4-H Facebook page.  

    The first tab on the site, labeled “Beef Talk” is the blog-like tab. Articles are released with the most current being at the top of the page and the older posts at the bottom or carried over to the next page. This page will serve as the home to Extension related articles, On-Farm Research Reports, and promotional materials for any upcoming Extension programs in southeast Nebraska.

    The next tab labeled “About” contains a brief biography of the website’s administrator, as well as a map containing the counties served in this Accountability Region.  

    The third tab titled “Beef and Grain Markets” contains live prices and updates of seven different crop and livestock commodities. Located to the right of this grid is a red button titled “View Summaries” that when clicked on, is directed to a weekly updated summary released by the USDA. This summary recaps the previous week and last year prices for commodities such as feeder steers and heifers, hay prices, corn prices, and Nebraska ethanol co-product prices. The bottom of the page contains links that directly lead to Beatrice 77 Livestock and Wahoo Livestock Sales respective websites, which promote their upcoming sales and includes previous sale summaries.  

    The final tab titled “Current Weather Data” contains a link to the Nebraska Mesonet as well as a continuously updating cattle comfort map.

If you have any questions about the website, contact Connor Biehler at (402) 624-8007. Or email inquiries can be sent to cbiehler2@unl.edu.



ChopLocal Celebrates 20 Farmers and Butchers

ChopLocal, a farmer-owned online marketplace, reached a milestone in July. The Iowa-based platform is now home to 20 farmers and butcher shops who sell their meat directly to consumers.

“When we started ChopLocal in 2020, our goal was to help smaller suppliers compete against larger online retailers and meat packers,” says Jared Achen, Iowa farmer and founder of the company. “Our current meat supply chain in the United States is efficient, but it is not resilient, and it does not put enough of the profits into the hands of the hard-working farmers who raise the meat.”

According to the United States Department of Agriculture (USDA), for every dollar spent on food in the United States, farmers receive 14.3 cents, down from 17.6 cents 10 years ago.

At same time, consumer trends have shown a proven desire for more transparency in food production and an increase in online food purchasing.

“The farmers and butcher shops we work with provide customers with exactly what they’re looking for,” says Katie Olthoff, ChopLocal’s co-founder. “ChopLocal is home to the highest quality meats and customers can find out exactly who they’re purchasing from.”

The ChopLocal farmers and butchers are all located in the Midwest, with 18 in Iowa, 1 in South Dakota and 1 in Kansas. They offer a wide variety of proteins from beef and pork to lamb and rabbit. Most vendors offer local pick-up and nationwide shipping.

To see a full list of ChopLocal’s farmers and butchers, visit https://choplocal.com/vendors/.



Learn What Stressed Corn Means for Swine Feed

Corn is a major ingredient in swine diets (ranging from 70 to 88% on a weight basis), which makes corn the primary energy source for most swine rations. The quality of the corn in these rations can impact animal performance and other management considerations.

A new publication from the Iowa Pork Industry Center, “Corn Quality – Concerns When Grain Does Not Reach Maturity,” offers preharvest, harvest and postharvest considerations for swine producers who grow their own corn and manufacture feed on-farm, as well as for nutritionists and feed mills.

The author is Mark Storlie, swine specialist with Iowa State University Extension and Outreach. He said the content offers good reminders, especially during times of environmental stress or shortened growing seasons.

“Grain that does not reach maturity or is stressed during the growing season due to weather, nutrients, disease or weed competition may be more prone to quality issues,” he said. “Awareness of factors impacting corn quality from field to feed and feed trial research may lead to better management decisions.”

The publication begins with a review of development of the corn kernel and how broken kernels and foreign matter, including mold and mycotoxins, can affect various quality factors. Summarized results from research trials on low-test weight effect on performance, correlation with energy level, and factors influencing corn test weight also are included.

Download the seven-page pdf publication IPIC-MS-June2021 at no charge from the IPIC website http://ipic.iastate.edu/publications/IPIC-MS-CornQualityConcerns.pdf.



Booker Reintroduces Bill to Reform Farm System With Expanded Support From Farm, Labor, Environment, Public Health, Faith Based and Animal Welfare Groups
Press release

U.S. Senator Cory Booker (D-NJ) today reintroduced legislation to create a level playing field for independent family farmers and transform the broken system built by multi-national meatpacking companies. The Farm System Reform Act would, among other things, strengthen the Packers & Stockyards Act to crack down on the monopolistic practices of meatpackers and corporate integrators, place a moratorium on large factory farms, sometimes referred to as concentrated animal feeding operations (CAFOs), and restore mandatory country-of-origin labeling requirements. U.S. Representative Ro Khanna (D-CA) introduced companion legislation in the House of Representatives. This reintroduction also follows President Biden’s recent executive order promoting competition in the marketplace, which is an important first step toward restoring fairness for independent family farmers and ranchers.

The COVID-19 pandemic has exposed many of the serious weaknesses in our food system. In particular the hyper consolidation of our livestock and meat industry led to a near collapse of the supply chain in the early days of the pandemic. Consumers found empty shelves at their grocery stores, at least 259 meat processing workers died of COVID after their employers failed to provide safe working conditions, animals were cruelly killed, and farmers were left with no market for the livestock they produced. This broken system is not the result of inevitable market forces, but rather flows directly from the influence multinational meatpackers – who continued to make record profits during the pandemic – have over federal farm policy.

Economic concentration in agriculture has been hurting our country, especially rural America, for decades. The top four beef packing companies control nearly 85% of the market. The top four pork packers control 71% of the market. These companies have too much market power, and it comes at the expense of independent family farmers, who earn just 14.3 cents of every dollar spent on food.  Agricultural concentration hurts consumers too, who see higher prices, poorer quality, less innovation, and reduced access to food.  Making things worse, U.S.D.A. has continued to allow beef and pork products that are shipped to the U.S. and processed or repackaged here to be labeled “product of U.S.A.,” even when the animal was raised in another country. This allows multinational meatpackers to pass their imported meat off as American, further eroding fair competition and preventing shoppers from supporting local rural communities.

“Large, multinational meatpackers, because of their buying power and size, are putting our food system at risk and harming everyone along the supply chain. We need to fix the broken system – that means giving family farmers and ranchers a fair shot and holding corporate integrators responsible for the harm they are causing,” said Senator Booker. “We must immediately begin to transition to a more sustainable and humane system. An important first step is ending our reliance on huge factory farms and investing in a system that focuses on resilient and regenerative production.”

“If Congress doesn’t act soon, we risk losing an entire generation of family farms to multinational farming corporations,” said Rep. Ro Khanna. “The Farm System Reform Act is the clear way to ensure the American food system maintains fair competition, high animal welfare standards, & a dependable food chain. We must fix this broken system. Proud to reintroduce this critical legislation with Senator Booker to level the playing field for family farmers, ranchers, and agricultural workers in the 21st century.”

Large CAFOs produce enormous amounts of animal waste and other harmful pollution, which are directly linked to environmental and health problems for farming communities across the country. These factory farms create runoff pollution that can contaminate waterways and drinking water. According to the Center for Disease Control and Prevention, large CAFOs produce as much as 1.4 billion tons of waste each year and are not required to maintain a treatment facility for livestock waste. The number of CAFOs have dramatically increased over the years and the steady growth makes rural communities vulnerable to environmental hazards and threaten the economic prosperity of family farms. The overuse of medically important antibiotics by large CAFOs has led to the generation and spread of dangerous antibiotic resistant bacteria. In 2019, the American Public Health Association urged federal, state, and local governments and public health agencies to impose a moratorium on all new and expanding CAFOs,and a 2021 study published in Proceedings of the National Academy of Sciences (PNAS) found that air pollution due to animal agriculture is responsible for 12,720 US deaths per year.

The Farm System Reform Act would:
    Place an immediate moratorium on new and expanding large CAFOs, and phase out by 2040 the largest CAFOs as defined by the Environmental Protection Agency
    Hold corporate integrators responsible for pollution and other harm caused by CAFOs
    Provide a voluntary buyout for farmers who want to transition out of operating a CAFO
    Strengthen the Packers and Stockyards Act to protect family farmers and ranchers, including:
        Prohibit the use of unfair tournament or ranking systems for paying contract growers
        Protect livestock and poultry farmers from retaliation
        Create market transparency and protect farmers and ranchers from predatory purchasing practices
    Restore mandatory country-of-origin labeling requirements for beef and pork and expand to dairy products
    Prohibit the United States Department of Agriculture (USDA) from labeling foreign imported meat products as “Product of USA”

The Farm System Reform Act is co-sponsored by Senators Bernie Sanders (I-VT) and Elizabeth Warren (D-MA).



NCBA Notes Introduction of Misguided Agriculture Bill from Sen. Booker

Today, the National Cattlemen’s Beef Association (NCBA) noted the introduction of misguided legislation entitled the Farm System Reform Act by Senator Cory Booker (D-NJ) and Congressman Ro Khanna (D-CA). NCBA Vice President of Government Affairs Ethan Lane gave the following response.
 
“In the past week, Democrats in Washington have put forward two starkly different proposals for strengthening the future of American cattle farmers and ranchers. One of these paths, namely the recent announcement from Secretary Vilsack, offers practical, long-term progress for our producers. The alternative, introduced today in Congress, is the kind of broad, jumbled mess you get when you’re more focused on Twitter and talking points than the sound legislating rural Americans need.
 
“95 percent of cattle raised in the United States visit a feedyard. Feeding operations aren’t antithetical to small, family-owned farms and ranches — they’re part and parcel of the same, symbiotic supply chain that produces the most nutritious, sustainable beef in the world. Cattle feeders respond efficiently to meet a wide range of consumer demands, and that efficiency is one of the main reasons why the United States has had the lowest beef GHG emissions intensity in the world for 25 years. As our food supply chain is taxed by a growing number of mouths to feed at home and abroad, this efficient production system will be more vital than ever.
 
“NCBA has long been on the forefront of issues like accurate ‘Product of the USA’ labeling, competitive and transparent markets, and a more resilient supply chain. While it is positive to see some of these key producer concerns receiving attention from two new members of the Senate and House Agriculture Committees, we’re also frustrated to see them buried in such a sprawling, misguided package.”  



Fischer, Klobuchar Lead Bipartisan Group in Reintroducing Legislation Expanding Market for Biofuels Year-Round

U.S. Senators Deb Fischer (R-Neb.) and Amy Klobuchar (D-Minn.), members of the Senate Agriculture Committee, released the following statement after reintroducing the Consumer and Fuel Retailer Choice Act. The bill would extend the Reid vapor pressure (RVP) volatility waiver to ethanol blends above 10 percent. It would increase market access and continue to allow retailers across the country to sell E15 and other higher-ethanol fuel blends year-round, eliminating confusion at the pump. Higher blends of ethanol burn cleaner, providing a way for more Americans to be part of the climate solution.

Cosponsors of the bill include Senators Chuck Grassley (R-Iowa), John Thune (R-S.D.), Joni Ernst (R-Iowa), Mike Rounds (R-S.D.), Jerry Moran (R-Kansas), Roger Marshall (R-Kansas), Tammy Duckworth (D-Ill.), and Tina Smith (D-Minn.)

Senator Fischer is a leader on this issue. She introduced the Consumer and Fuel Retailer Choice Act in the 115th Congress and successfully worked to secure a hearing on the Environment and Public Works Committee.

She urged former President Trump to take executive action allowing E15 to be sold year-round, and traveled with him to Nebraska and Iowa for the announcement. The recent U.S. Court of Appeals for the D.C. Circuit decision vacated that action.

Nebraska is ranked second in the nation in biofuel production and has 25 operating ethanol plants across the state. These plants produce more than 2 billion gallons of renewable fuel annually and have created more than 1,300 good-paying jobs.



Reps. Smith, Craig Lead Biofuels Caucus Co-Chairs in Introducing Legislation to Allow Year-Round E15 Sales

Representatives Adrian Smith (R-NE) and Angie Craig (D-MN) today led their Co-Chairs of the Congressional Biofuels Caucus, Representatives Dusty Johnson (R- SD), Cindy Axne (D-IA), Rodney Davis (R-IL), and Mark Pocan (D-WI), in introducing the Year-Round Fuel Choice Act. This bipartisan legislation would ensure the Environmental Protection Agency (EPA) can grant waivers to allow E15 and higher blend fuels to be sold at retailers year-round. Smith and Craig introduced the legislation after a federal appeals court struck down an EPA rule that lifted restrictions on the year-round sale of certain corn ethanol fuel blends. The legislation would provide key stability and predictability for family farmers and biofuels producers across the country.

“I have long championed the uninterrupted sale of E15 to provide consumers consistency in their fuel tank and farmers consistency in their production,” said Smith. “Time after time I’ve introduced legislation to emphasize and reinforce EPA’s authority to allow the year-round sale of E15. With the recent D.C. Circuit Court ruling to roll back RVP waivers, it’s imperative we clarify congressional intent once and for all: there is no reason E15 should not have the same regulatory relief as E10.”

“E15 and higher blend biofuels expand markets for family farmers, support economic growth in rural America and cut down on dangerous pollutants released into the air we breathe,” said Rep. Craig. “It’s long past time that the year-round sale of these renewable fuels was made permanent, expanding the market for lower-cost, lower-carbon fuel choices all across America. I’m proud to work with Representative Smith on this critical legislation to support our biofuels producers and family farmers, while expanding options at the pump for consumers across the country.”

Earlier this month, the D.C. Circuit Court of Appeals reversed an EPA rule that allowed retailers to sell E15 blends of ethanol year-round by granting a waiver from Reid Vapor Pressure (RVP) requirements. The court ruled the EPA had exceeded its authority by lifting summertime restrictions on the sale of ethanol blends. While the court’s ruling has not yet taken effect, Smith and Craig’s legislation would preempt any restrictions by providing a legislative fix to ensure the permanent year-round sale of E15 and higher blend biofuels.

Smith first introduced legislation to clarify EPA’s authority to provide a RVP waiver for E15 fuel and require the agency to do so in 2015.



NCGA Supports Legislation to Provide E15 Market Access Solution

The National Corn Growers Association (NCGA) thanks bipartisan members of Congress in both the House and Senate for their continued support of corn growers and rural America through the introduction of legislation that would ensure higher blends of ethanol, specifically E15, are available in the marketplace year-round. Led by Representatives Angie Craig (D-Minn.), Adrian Smith (R-Neb.) and co-chairs of the House Biofuels Caucus, 22 House members introduced H.R. 4410, the Year-Round Fuel Choice Act. In the Senate, Senator Deb Fischer (R-Neb) and Amy Klobuchar (D-Minn.), led introduction of the Consumer and Fuel Retailers Choice Act with 10 bipartisan cosponsors.

“Corn growers stand behind the many benefits of higher ethanol blends like E15 and support ensuring its continued access to the marketplace on the same terms as standard ten percent blends. E15 is lower in carbon, tailpipe and evaporative emissions, not to mention lower in price, so it’s no surprise oil companies have tried to shut it down through the courts,” said John Linder, National Corn Growers Association President. “NCGA appreciates the bipartisan leadership of Representatives and Senators toward a durable solution that would allow continued market access and expansion for proven low carbon fuel in E15 and stands ready to work with Congress and the EPA to provide certainty for consumers, retailers, our environment and rural economies.”

The D.C. Circuit Court of Appeals vacated a 2019 rule by the Environmental Protection Agency that removed outdated regulatory barriers to the sale of a fifteen percent ethanol fuel blend, E15 or Unleaded 88. The case, American Fuel & Petrochemical Manufacturers, et al. vs. EPA, was a challenge by oil refiners to the rulemaking that extended the same treatment 10 percent ethanol blends receive to E15, allowing year-round market access for E15. Growth Energy, the Renewable Fuels Association, and the National Corn Growers Association joined the litigation as intervenors in support of EPA’s rule of EPA. NCGA will continue to pursue all options to prevent impact on retailers and drivers this summer and to ensure a long-term solution before next summer.



Following Court Decision, U.S. House Moves to Ensure E15 Year-Round

Today, the bipartisan Year-Round Fuel Choice Act was introduced by Representatives Angie Craig (D-Minn.) and Adrian Smith (R-Neb.) to ensure the continued availability of low-carbon fifteen percent ethanol fuel blends (E15) in all fuel markets year-round.  Similarly, the bipartisan Consumer and Fuel Retailer Choice Act was introduced by Senators Deb Fischer (R-Neb.), Amy Klobuchar (D-Minn.), and Tammy Duckworth (D-Ill.).

On July 2, the D.C. Circuit Court of Appeals vacated a 2019 rule by the Environmental Protection Agency (EPA) that lifted outdated restrictions on the summertime sale of E15, a cleaner burning fuel approved for 95% of cars on the road. This legislation would permanently extend the 1.0 psi summertime Reid vapor pressure (RVP) waiver to ethanol blends beyond E10, thus eliminating any seasonal restrictions on sales.

Growth Energy CEO Emily Skor released the following statement applauding the Year-Round Fuel Choice Act:

“We’re grateful our congressional champions acted swiftly on behalf of farmers, biofuel producers, and drivers nationwide to introduce the Year-Round Fuel Choice Act,” said CEO Emily Skor. “The Year-Round Fuel Choice Act would make permanent the RVP waiver for summertime use of higher blends of biofuels, ensuring consumers have year-round access to a lower-carbon, lower-emission renewable fuel that saves money at the pump.

“As this country works to address climate change, we must embrace ready solutions that can be implemented today to immediately reduce our carbon emissions in our current auto fleet. This legislation comes at a critical time on the heels of a court ruling that would allow the oil industry to monopolize the gas tank and push aside low-carbon renewable fuels. We will continue to work with our congressional champions to see this legislation through, and fight to give Americans an opportunity to make a positive impact on the environment by filling up on earth friendly fuel blends like E15.”

Background
In June 2019, the Trump Administration’s EPA revised its interpretation of a provision of the Clean Air Act that grants a 1.0 psi summertime waiver of Reid vapor pressure (RVP) requirements. In doing so, EPA allowed drivers to access cleaner, more affordable biofuel blends like E15 year-round.

On July 2, 2021, the D.C. Circuit Court of Appeals overruled this interpretation, arguing that the word “contains 10 percent” in the relevant RVP statutory text does not extend the 1.0 psi RVP waiver from E10 to E15, thus limiting sales of E15 in conventional fuel areas during the summer, affecting 85% of current E15 fuel retailers across the country.

The Year-Round Fuel Choice Act would extend the one-pound waiver to fuel blends containing ten percent ethanol “or more”.

About E15
E15 is a 15 percent ethanol blended fuel, known to many consumers as Unleaded/Regular 88 (UNL88), that allows drivers to save money at the pump while reducing their greenhouse gas emissions. In fact, if the United States transitioned from driving with the standard E10 blend to E15, our national greenhouse gas emissions would decrease by 17.62 million tons per year, which is the equivalent of removing approximately 3.85 million vehicles from the road.  

Beyond environmental benefits, moving to nationwide E15 would add $17.8 billion to the GDP, create 182,600 new jobs, save households a total of $10.5 billion, and save $12.2 billion in fuel costs.  

This biofuel is currently approved for use in cars model year 2001 and newer and is available at over 2,460 retail sites in 30 states. To date, Americans have logged over 22 billion miles with E15.



ACE Endorses Congressional Action to Enable E15 Sales Year-Round

American Coalition for Ethanol (ACE) thanked Representatives Angie Craig (D-MN) and Adrian Smith (R-NE) for their leadership and support in introducing the Year-Round Fuel Choice Act along with Co-Chairs of the Congressional Biofuels Caucus and others. This bipartisan legislation clarifies E15 should be allowed for sale year-round by extending the 1-psi Reid vapor pressure (RVP) waiver to fuel blends containing gasoline and ‘over 10 percent ethanol.’ Following the July 2 D.C. District Court of Appeals’ reversal of the Environmental Protection Agency’s 2019 regulation which extended the RVP waiver to gasoline ‘containing at least 10 percent’ ethanol to E15, ACE CEO Brian Jennings endorses this swift legislative action to address the issue:  

“Given the sense of urgency to ensure uninterrupted availability of E15 year-round in all parts of the country we are enormously grateful for the tremendous leadership of Reps. Craig, Smith and others by introducing this legislation to clarify the statute in the wake of the unfortunate decision from the D.C. Circuit Court.

“Since 2019, E15 adoption at retail sites has almost doubled with nearly 2500 locations and extending the 1-psi RVP waiver to E15 only makes sense to reflect the realities of today’s motor fuel market and year-over-year track record of successful growth. Without this legislation, it is possible to lose E15 sales next summer which would harm everyone through higher pump prices and greenhouse gas and tailpipe emissions.

“ACE looks forward to continuing to help foster bipartisan support for this legislation while exploring other options to ensure E15, a clean and safe fuel with lower RVP emissions than E10 and straight gasoline, can still be sold next summer.”

Craig and Smith were joined in leading the introduction of the bill by caucus co-chairs Representatives Cindy Axne (D-IA), Rodney Davis (R-IL), Dusty Johnson (R- SD) and Mark Pocan (D-WI). The co-chairs were joined in introducing this legislation by Representatives Randy Feenstra (R-IA), Jeff Fortenberry (R-NE), Jason Smith (R-MO), Cheri Bustos (D-IL), Ashley Hinson (R-IA), Ron Estes (R-KS), Vicky Hartzler (R-MO), Mike Bost (R-IL), Mariannette Miller-Meeks (R-IA), Jim Hagedorn (R-MN), Blaine Luetkemeyer (R-MO), Jim Baird (R-IN), James Comer (R-KY), Michelle Fishbach (R-MN), Ron Kind (D-WI) and Darin LaHood (R-IL).



RFA Thanks Congressional Champions for Year-Round E15 Legislation

The Renewable Fuels Association today thanked members of the House and Senate for collaborating on a legislative remedy to the recent court decision striking down year-round sales of the E15 ethanol blend. Leading the effort in the Senate are Sens. Deb Fischer (R-NE) and Amy Klobuchar (D-MN); in the House, Reps. Angie Craig (D-IA) and Adrian Smith (R-IL). In the House, the bill is called the Year-Round Fuel Choice Act; in the Senate, it is the Consumer and Fuel Retailer Choice Act.

“We thank these leaders for their quick work following the July 2 ruling of the D.C. Circuit,” said RFA President and CEO Geoff Cooper. “These bills will make it abundantly clear that the intent of Congress is to allow the year-round use of lower-cost, lower-carbon, American-made E15. Increasing drivers’ access to higher-level blends like E15 remains a top priority for RFA, and we are committed to working with these leaders in Congress, and the Biden administration, to make that a reality.”

On July 2, The D.C. Circuit Court of Appeals reversed a 2019 rule by the Environmental Protection Agency that lifted outdated restrictions on the sale of E15. The case was a challenge by oil refiners to the rulemaking that allowed the year-round sale of E15. E15 sales continue into this summer while the appeal process takes place, and this legislation can also provide a more permanent fix to ensure certainty in the liquid fuel market.



 ACE Endorses Congressional Action to Enable E15 Sales Year-Round

American Coalition for Ethanol (ACE) thanked Senators Amy Klobuchar (D-Minn.) and Deb Fischer (R-Neb.) for their leadership and support in introducing the Consumer and Fuel Retailer Choice Act. This bipartisan legislation clarifies E15 should be allowed for sale year-round by extending the 1-psi Reid vapor pressure (RVP) waiver to fuel blends containing gasoline and ‘over 10 percent ethanol.’ Following the July 2 D.C. District Court of Appeals’ reversal of the Environmental Protection Agency’s 2019 regulation which extended the RVP waiver to gasoline ‘containing at least 10 percent’ ethanol to E15, ACE CEO Brian Jennings endorses this swift legislative action to address the issue:  

“Given the sense of urgency to ensure uninterrupted availability of E15 year-round in all parts of the country we are enormously grateful for the tremendous leadership of Senator Klobuchar, Senator Fischer and others by introducing this legislation to clarify the statute in the wake of the unfortunate decision from the D.C. Circuit Court.

“Since 2019, E15 adoption at retail sites has almost doubled with nearly 2500 locations and extending the 1-psi RVP waiver to E15 only makes sense to reflect the realities of today’s motor fuel market and year-over-year track record of successful growth. Without this legislation, it is possible to lose E15 sales next summer which would harm everyone through higher pump prices and greenhouse gas and tailpipe emissions.

“ACE looks forward to continuing to help foster bipartisan support for this legislation while exploring other options to ensure E15, a clean and safe fuel with lower RVP emissions than E10 and straight gasoline, can still be sold next summer.”

Original cosponsors of the bill include Senators Chuck Grassley (R-Iowa), John Thune (R-S.D.), Joni Ernst (R-Iowa), Mike Rounds (R-S.D.), Jerry Moran (R-Kansas), Roger Marshall (R-Kansas), Tammy Duckworth (D-Ill.), Tina Smith (D-Minn.), Richard Durbin (D-Ill.), and Tammy Baldwin (D-Wisc.).



RFA CEO: Multiple Reasons for Ethanol Optimism
    
Low-carbon ethanol’s “brightest and sunniest days remain ahead” despite recent judicial setbacks and a growing policy push on electric vehicles, RFA President and CEO Geoff Cooper said in keynote remarks today at the International Fuel Ethanol Workshop and Expo.

Even after two recent disappointing court decisions, “The ethanol industry is still in a stronger position today than we’ve been in for years,” Cooper told the Des Moines audience. “Our outlook remains bright, despite what the headlines and our opponents would like us to believe.”

The potential impacts of the June 25 Supreme Court decision on small refinery exemptions and the July 2 D.C. Circuit Court decision to reverse year-round E15 sales will be more limited than some believe, Cooper said.  

The Supreme Court, for example, did not address two aspects of the Tenth Circuit decision: that refiners asking for an exemption must prove that the claimed economic hardship is caused solely by the RFS, and that refineries of all sizes pass through their RIN costs in the wholesale prices of their refined products. “It will be next to impossible for refiners to establish that the RFS itself has harmed them,” Copper said, noting that EPA has indicated its agreement with the Tenth Circuit decision.

Regarding the year-round E15 ruling, Cooper expects E15 will remain available through this summer season as any appeals of the D.C. Circuit decision are considered.

“But what about next summer?” he asked. “And every summer after that? RFA is considering all available options to protect and expand the market for E15. In addition to pursuing a rehearing in the D.C. Circuit or an appeal to the Supreme Court, EPA could explore other potential regulatory workarounds that would allow retailers to continue selling E15 all year long.”

Cooper stressed strong general support for ethanol in Washington, from Congress to the White House to the EPA.

“Renewable fuels continue to enjoy strong support from both political parties and in both chambers of Congress,” he said. “This support is something RFA has been cultivating since our organization was founded 40 years ago. We are so incredibly fortunate to have so many elected officials who truly understand the benefits and advantages of producing and using renewable fuels. They know that the people in this room play a critical role in creating jobs and improving rural livelihoods, diversifying and securing our energy supply, and cleaning up the air we breathe.”

Finally, Cooper noted that ethanol could—and should—play a major role in efforts to greenhouse reduce emissions from the transportation sector, especially if additional state low-carbon fuel standards, or a national LCFS program, are adopted. “Even after accounting for all of energy and emissions associated with every step of the ethanol production process, today’s corn starch ethanol is shown to reduce greenhouse gas emissions by nearly 50 percent compared to gasoline,” he said. “Clearly, we are already on our way to ‘net zero’ with ethanol. Proper accounting of soil carbon accumulation in cornfields, using biogas for thermal energy, or adopting carbon capture and sequestration could make corn ethanol carbon neutral—or even carbon negative.”

Cooper concluded: “We’ll continue to experience bursts of rain and the occasional downpour—just like we have over the past few weeks. But after every storm, the clouds part and the sun shines through. And I continue to believe our brightest and sunniest days remain ahead of us.”



Weekly Ethanol Production for 7/9/2021

According to EIA data analyzed by the Renewable Fuels Association for the week ending July 9, ethanol production scaled back by 26,000 barrels per day (b/d), or 2.4%, to 1.041 million b/d, equivalent to 43.72 million gallons daily. Production was 11.8% above the same week last year, which was affected by the pandemic, but 2.3% below the same week in 2019. However, the four-week average ethanol production volume increased 0.4% to 1.053 million b/d, equivalent to an annualized rate of 16.14 billion gallons (bg).

Ethanol stocks ticked 0.1% lower to 21.1 million barrels. Stocks were 2.6% above the year-ago level but 9.5% below the same week in 2019. Inventories declined across all regions except the Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, receded 7.6% from last week’s record high to 9.28 million b/d (142.31 bg annualized). Gasoline demand was 7.3% above a year ago and 0.7% greater than the same week in 2019.

Refiner/blender net inputs of ethanol declined 3.5% to a four-week low of 916,000 b/d, equivalent to 14.04 bg annualized. Net inputs were 11.8% above a year ago and 0.7% higher than the same week in 2019.

There were zero imports of ethanol recorded for the second consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of May 2021.)



Ground Beef Demand
James L. Mitchell, Extension Economist, University of Arkansas

Last week’s article by David Anderson provided an update on cow slaughter and cull cow markets. This week, I thought I would continue this discussion by examining one of the main drivers of cull cow markets, ground beef.
 
To review, cull beef cows contribute to ground beef production as a source of 90% lean trimmings, blended with 50% lean trimmings to make the majority of our ground beef and hamburger. The other two sources of lean trimmings are dairy cows and lean beef imports. For context, in 2019 and 2020, cull beef and dairy cows represented 28.4 percent and 27.6 percent of total U.S. beef trim supplies, respectively. Fed cattle trimmings are the main source of 50% lean trim. In 2020, fed trim accounted for 41.3 percent of total U.S. supplies.
 
This year, beef cow slaughter has been averaging 9.9 percent above 2020 slaughter and 12.4 percent higher than 2019 slaughter. This means a larger supply of lean trimmings from beef cull cows. All else equal, we would expect lower cull cow and lean trim prices due to larger supplies. However, this has not been the case this year.
 
Southern Plains slaughter cow prices have averaged 8.1 percent above 2020 and 14.7 percent above 2019 prices. Lower dairy cow slaughter and beef imports (the other two sources of lean trim) have helped support cull cow markets. In 2021, dairy cow slaughter has averaged 0.9 percent below 2020 slaughter and 3.7 percent lower than 2019 slaughter. USDA forecasts beef imports to be down 10 percent this year. Both would support cull cow markets to a point.
 
Ground beef demand is the other factor driving cull cow values. Examining lean trimmings prices reported by USDA and retail ground beef prices from the Bureau of Labor Statistics provides insights into the ground beef market. Fresh 90% lean trimmings have averaged 4 percent below 2020 prices but 11 percent higher than 2019 prices. BLS data through May 2021 shows that ground beef prices have averaged $4.04 per pound or 0.5 percent higher than 2020. Lean ground beef prices have averaged 1.6 percent and 9.9 percent above 2020 and 2019 prices, respectively. The only way to have higher prices with larger supplies of cull cows and lean trimmings is with strong ground beef demand.



NMPF Statement on Appropriations Language Allowing Dairy Farmer Participation in H-2A Program
NMPF President and CEO Jim Mulhern

“NMPF thanks Reps. Henry Cuellar (D-TX) and Dan Newhouse (R-WA) for their tireless efforts on behalf of America’s dairy producers to include year-round employees on farms in the H-2A farm worker visa program. We urge Congress not to delay providing dairy farmers with access to the H-2A program during a time of critical labor needs.

“Dairy farmers largely have not been able to use H-2A visas because the current program is limited only to the temporary and seasonal labor needs of agricultural employers. The current H-2A program simply isn’t an option for a commodity that ‘harvests’ its product multiple times a day, every day.

“The Cuellar-Newhouse bipartisan amendment to this year’s Homeland Security Appropriations bill would allow farm employers to use the H-2A visa program to hire foreign workers, regardless of whether those employees are engaged in temporary or seasonal work. Under this amendment, dairy farmers and other year-round producers could use the H-2A program to supplement their domestic workforce.

“Beyond just providing dairy temporary access to the H-2A program, the measure is important because we must continue to build momentum for ag labor reform as we await a Senate measure that carries forward and improves upon the Farm Workforce Modernization Act, which the House approved in a bipartisan vote in March.

“Recent history shows bipartisan support for farm workforce legislation that addresses the needs of producers and farmworkers. It is critical that the government continues to build on these bipartisan efforts to create a system that provides secure, legal employment. We thank lawmakers for their efforts toward achieving this goal.”



Sen. Gillibrand continues to move forward on Dairy Subcommittee hearing on dairy pricing

Senator Kirsten Gillibrand (D-NY) continues to move forward with a dairy pricing hearing. Although a Senate calendar date is not yet confirmed, the hearing is supposed to take place after the legislator’s August recess.  Permission has been granted for a hearing in the U.S. Senate Agriculture Subcommittee she chairs on Dairy, Livestock, Poultry, Local Food Systems, Food Safety and Security. Her office reports establishing scope and is currently interviewing potential panelists.
 
Previously, Sen. Gillibrand told reporters she is working on milk pricing legislation and wants to have hearings to allow input from farmers, milk handlers and academia.  
 
“We cannot lose the ability to feed our own people,” Gillibrand said during a May 26 press conference, expressing her concerns over 10 years of service on the Senate Ag Committee. “If you have a market that’s fundamentally flawed and constantly see the loss of producers unable to survive in the industry, there’s a problem. So, I think we need a very thorough investigation of my concerns.”
 
At that time, the Senator described a hearing of multiple supply chain aspects and perspectives and the potential for further investigation. The upcoming Dairy Subcommittee hearing is expected to include a panel of dairy farmers as well as representation by cooperatives, processors and an expert on dairy policy and economics.
 
Front and center is the Class I fluid milk pricing change made in the 2018 Farm Bill from the ‘higher of’ Class III or IV manufacturing prices to an averaging method.
 
This changed the base price for Class I by a net loss of over $783 million across the 26 months of implementation, contributing to class price misalignments that disrupted Federal Milk Marketing Orders (FMMOs). As massive volumes of milk were de-pooled by Class III milk handlers, negative producer price differentials (PPDs) persisted to accrue more than $3 billion in losses, according to several industry analyses.
 
Also disrupted was the performance of producer price risk management tools that are based on market values most farmers did not receive in their milk checks -- like an insurance adjuster looking at undamaged property to determine coverage for damaged property.
 
ADC has been working to bring dairy producers together through months of conference calls and emails, initiating a letter signed by hundreds of producers and state and national organizations. The March letter to National Milk Producers Federation and International Dairy Foods Association requested a seat at the table for dairy farmers on this issue.
 
Through these ADC conference calls, a consensus emerged to seek a return to the ‘higher of’ method until a Class I solution can be vetted through FMMO hearing processes.
 
In May, ADC worked with Senators to support Gillibrand’s letter, signed by more than 20 colleagues to Agriculture Secretary Tom Vilsack, seeking dairy assistance for these losses through available CFAP and PAP funds. Secretary Vilsack indicated during a recent Ag Appropriations hearing that USDA is working on a plan to compensate Class I and III differential losses, but no details have been provided.
 
Senator Gillibrand recently observed that milk prices have been extremely volatile for decades. Since 2003, the U.S. lost almost half its licensed dairy herds with milk price returns declining 23% in the past five years, according to USDA.
 
According to the Senator’s office, the upcoming hearing is likely to include potential modifications to the Class I pricing formula and the effects of this 2018 Farm Bill change; the FMMO hearing process; and the impact of the USDA food box program cheese purchases.