UNL webinar to analyze proposed 30 by 30 conservation plan
The Center for Agricultural Profitability at the University-Lincoln will cover President Biden’s proposed 30 by 30 conservation plan during a webinar at noon July 22.
On Jan. 27, President Biden signed a climate action executive order pledging, among other things, to conserve at least 30% of U.S. land and water by 2030. On May 6, a report to the president provided some details for implementing the 30 by 30 plan. For farmers and ranchers, one of the most important of the report’s core principles is the pledge to honor private property rights, honor existing voluntary stewardship efforts by private landowners and build on existing land and water conservation programs.
The webinar will describe the 30 by 30 plan and discuss how the U.S. may be closer to reaching 30% land protection than many may realize. It will be presented by Dave Aiken, professor and agricultural law and water specialist in the university’s Department of Agricultural Economics.
The webinar is part of the Center for Agricultural Profitability’s weekly series, held every Thursday at noon.
The new interdisciplinary center, based in the Department of Agricultural Economics, opened June 28 to support informed economic decision-making in agriculture through research, extension and education. For more about the center, and to register for the July 22 webinar, visit https://cap.unl.edu.
Nebraska Corn Board targets motorists in California through ethanol infrastructure grant
The Nebraska Corn Board (NCB) has long provided infrastructure grants to fuel retailers and supported local ethanol expansion within the state. To complement this work, NCB is additionally boosting ethanol demand in population-dense areas, like California. NCB recently partnered with Pearson Fuels to help two fuel retailers in Los Angeles County – the most populous county in the U.S. – offer consumers E85 (an 85% ethanol blend).
Flex fuel vehicle owners in the Chatsworth suburb (within Los Angeles city limits) and in Agoura Hills (located in the Santa Monica Mountains region) will have additional access to E85 through the retail conversions. E85 provides numerous benefits to consumers, including a higher-octane rating, lower cost, and the fuel is cleaner burning. In fact, ethanol has been proven to reduce greenhouse gas emissions by up to 46% compared to traditional gasoline, which is appealing to environmentally conscious consumers in California, who are looking for lower-carbon energy options.
A gas pump offering E85 in California
“California is the largest E85 market in the country and the demand opportunity is enormous,” said John Greer, District 2 Director serving NCB and farmer from Edgar, Nebraska. “As we look at where we can best build demand for Nebraska’s corn growers, we need to look at states like California because there’s just so many more people. Plus, most of Nebraska’s ethanol is sold to California. We will continue to support infrastructure in-state, but we’re going to fill so much more demand by adding states with high populations into the mix.”
Nebraska is the nation’s third largest corn producer and is second in ethanol production. The state’s agricultural system is often known as “the Golden Triangle” due to the close proximity and synergies shared between the corn, livestock and ethanol industries. Nebraska is able to efficiently produce quality fuel, food and fiber locally, nationally and internationally.
“Currently, California is the largest E85 market in the entire country, outpacing sales in Iowa by 200% and Minnesota by 300%,” said Greg Jones, director of business development with Pearson Fuels. “The costs of converting stations to offer E85 in California are also so much higher. That’s why we’re so excited to partner with the Nebraska Corn Board to help expand this market.”
E85 is approved for flex fuel vehicles. California leads the nation in the number of flex fuel vehicles on the road with 1.1 million in 2020. By comparison, less than 370,000 vehicles in California were battery electric vehicles, which positions ethanol as a here-and-now carbon solution.
Iowa Corn Announces Election Results for Board of Directors
Today Iowa Corn announced the Board of Directors election results for the Iowa Corn Growers Association® (ICGA) and Iowa Corn Promotion Board® (ICPB).
Those elected as ICGA directors will continue to bring grassroots policy issues forward and be the collective voice for nearly 7,000 members lobbying on agricultural issues at the state and federal level. These individuals include:
District 2: Stu Swanson* of Wright County
District 5: Will Cannon of Jasper County
District 7: Adam Bierbaum* of Cass County
*For those re-elected
Since 1978, Iowa corn farmers have elected their peers to serve on ICPB to oversee the investment of funds generated by the Iowa corn checkoff. ICPB directors will continue to promote a thriving Iowa corn industry through research into new and value-added corn uses, domestic and foreign market development, and providing education about corn and corn products. These individuals include:
District 4: Ryan Steffensen of Guthrie County
District 8: Jerod Flaherty of Clarke County
District 9: Stan Nelson* of Des Moines County
*For those re-elected
Both ICGA and ICPB are tasked with creating opportunities for long-term Iowa corn grower profitability. Elected directors will begin to serve their districts on September 1, 2021.
IBIC Summer Grilling Coloring Contest
July is here, and summer is well underway! Iowa’s future beef farmers are getting their beef projects ready for the county fair, kids are hanging out at the pool, and the smell of beef on the grill wafts through the air. As a parent trying to survive summer vacation, you may be looking for new and exciting things to keep your child entertained. Look no further and break out the crayons and colored pencils because the Iowa Beef Industry Council is having a coloring contest!
Participation is hassle-free. Download the coloring page found on our website and let the creativity flow. After your child has colored the beef grilling sheet to the best of their ability, upload a high-quality photo of their work in the form provided. Students will be divided into four categories: 2-3, 4-5, 6-7, and 8-9 years of age. The winning picture from each category will receive a $50 beef certificate and an age-appropriate summer grilling swag item.
Entries must be submitted by July 20, 2021 at 5 PM CST.
Beef is a great source of high-quality protein that can help curb your kid’s hunger and fuel summer fun all day long. Are you tired of cooking the same thing for your family? Then mix up your meal plan with these kid-friendly recipes. Better yet, invite them into the kitchen for some hands-on learning.
English Muffin Cheeseburger Pizzas: Cheeseburgers and pizza? Two of our favorite things combined into one.
Popcorn Steak Bites: Beefy nuggets cooked in the oven, perfect for little hands to dip as they wish.
Rock and Roll Beef Wraps: A colorful way to introduce quinoa to your kids with ranch-seasoned Ground Beef and slaw.
Cooking and coloring: fun for the whole family!
New Corn Quality Concerns Publication Provides Timely Information for Swine Producers
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 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. Iowa State University extension swine specialist Mark Storlie is the author. He said the content offers good reminders especially during times of environmental stress or shortened growing seasons.
“Grain which 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 decision.”
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.
NCBA Welcomes Court Decision on Navigable Waters Protection Rule
On Wednesday, the U.S. District Court in South Carolina dismissed a challenge to the Navigable Waters Protection Rule (NWPR) and granted a remand without vacatur, ensuring the rule remains in effect until the Biden Administration finalizes a new rule. NCBA, along with other agricultural groups, are engaged in litigation across the country to defend the NWPR and are pleased with this key legal victory.
“The NWPR is a major improvement to the widely overreaching 2015 Waters of the United States (WOTUS) rule,” said NCBA Chief Environmental Counsel Scott Yager. “NCBA has long fought to protect private property rights and oppose the unnecessary expansion of federal jurisdiction over isolated and temporary water features. This decision is a victory for America’s cattle producers, ensuring regulatory certainty while the Biden Administration moves through the lengthy rulemaking process. NCBA opposes any federal action that hinders producers’ ability to make investments in their land and care for their cattle. Moving forward, NCBA will continue engaging with the Biden Administration, Congress, and the Courts to protect cattle producers’ property rights.”
NBB Disappointed in DC Circuit Decision on SREs in 2019 RFS Rule
Today, the National Biodiesel Board expressed disappointment in the U.S. Court of Appeals for the D.C. Circuit’s decision on the 2019 Renewable Fuel Standard rule. NBB joined other biofuel industry associations (the case is known as Growth Energy v EPA) to challenge EPA’s failure to account for a flood of retroactive small refinery exemptions that undercut the annual volumes by 7% in 2019.
Kurt Kovarik, NBB’s Vice President for Federal Affairs, stated, “Small refinery exemptions harm biodiesel and renewable diesel producers when they retroactively reduce demand for advanced biofuels. Today’s decision creates renewed uncertainty for our industry because it does not require EPA to account for retroactive exemptions – something the 10th Circuit Court identified as ‘a gaping and ever-widening hole’ in the RFS.
“On behalf of NBB’s members, I call on EPA to quickly issue the 2021 and 2022 RFS rules, provide a strong signal of growth for advanced biofuels like biodiesel and renewable diesel, and fully account for any small refinery exemptions it plans to grant—as it has already done in the 2020 RFS rule.”
The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13% of the value of each U.S. bushel of soybeans.
Farm Loan Interest Rates Starting to Move Up
Interest rates on agricultural loans made by commercial banks increased slightly for some types of lending, but remained historically low through the first half of 2021. The average rate on non-real estate loans was about 30 basis points higher than the all-time low reached at the end of 2020 and the uptick was largely consistent across loan types. In contrast, average rates on farm real estate loans continued to decline and marked another historic low. Rates also remained comparatively low at the largest commercial banks and those lenders offered a sizeable discount for the lowest risk loans, while smaller lenders continued to provide similar accommodation regardless of riskiness.
Despite the slight increase in rates for operating loans, the historically low interest rate environment and muted demand for agricultural lending suggests that interest expenses have remained low relative to recent years.
Profitability in the sector also continued to be supported by strong prices for most major commodities. The slight decline in financing costs for farm real estate may also provide ongoing support to farmland values. With the exception of some persistent headwinds for the cattle industry and producers impacted by drought, the outlook for the agricultural economy in 2021 remained strong through the second quarter.
Dairy Farmers Spotlight Ag Labor Reform Needs in Roundtable with Vilsack, Delgado
Dairy farmers are urging the government to address dairy’s acute labor shortages -- and the need for the U.S. Senate to craft a counterpart to the House-passed bipartisan Farm Workforce Modernization Act – in meetings today with Agriculture Secretary Tom Vilsack and Rep. Antonio Delgado (D-NY), culminating in a roundtable discussion at SUNY-Cobleskill in Cobleskill, New York.
Vilsack and Delgado will talk with farmers and farmworkers to address the unworkability of current farm-labor policies. Dairy faces special challenges as a year-round, around-the-clock agricultural sector because the current rules of the H-2A guestworker visa program limits its use to only the temporary and seasonal labor needs of agricultural employers.
“Unfortunately, the Department of Labor hasn’t made available the current H-2A program for a commodity that ‘harvests’ its product multiple times a day, every day,” said Jim Mulhern, president and CEO of the National Milk Producers Federation in a statement before the event. “We commend USDA and Rep. Delgado for supporting ag labor reform legislation and organizing this important discussion.”
NMPF supports the Farm Workforce Modernization Act as a vehicle for additional policy improvements and to prod Senate legislation that can be reconciled into a final bill that can pass both houses of Congress. Delgado was an early cosponsor of the legislation, which passed the House of Representatives by a solid bipartisan margin in 2019 and again in March. To build momentum for a solution, Vilsack hosted a bipartisan roundtable last month with key Senate negotiators and agricultural stakeholders, including NMPF.
“Without Senate action, the hard-won progress lawmakers have made on ag-labor issues won’t bring the solutions farmers need,” he said. “We need this conversation to turn into action in congressional corridors so that farmers and farmworkers can benefit from a workable labor system.”
Dairy Farmers Welcome Ambassador Tai to Trade Forum Hosted by Rep. Kind
The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today commended Representative Ron Kind (D-WI) and U.S. Trade Representative Ambassador Katherine Tai for hosting a trade forum at a Wisconsin dairy farm. Several dairy farmers had the opportunity to voice their concerns and priorities for dairy exports with Ambassador Tai and highlight the impact of trade policy on American dairy producers.
USDEC and NMPF members participating in the event emphasized the need for greater market access for dairy products and the impediments trade barriers pose to greater international trade. At the event, dairy farmers belonging to NMPF and USDEC members Associated Milk Producers, Inc., Dairy Farmers of America, FarmFirst, and Organic Valley, among others, praised Congressman Kind for his leadership as he continues to encourage the Biden Administration to work toward greater opportunities in international markets. The event was hosted by Hamburg Hills Farm, an Organic Valley member located in Stoddard, Wisconsin.
“On behalf of dairy producers and their cooperatives, NMPF thanks Congressman Kind for his ongoing advocacy in securing trade opportunities for dairy farmers in Wisconsin and nationwide. We’re grateful that Ambassador Tai and hardworking USTR staff are pursuing a dispute settlement case to finally secure Canadian market access granted under USMCA,” said Jim Mulhern, President and CEO of NMPF. “We look forward to working with Ambassador Tai, Representative Kind, and their staff to reduce foreign trade barriers through country-to-country dialogues and new trade agreements.”
“Obtaining and expanding market share abroad is critical to U.S. dairy manufacturers and exporters. The global dairy industry is more competitive than ever, so we greatly appreciate Congressman Kind hosting Ambassador Tai on a dairy to provide tangible examples of why the U.S. dairy value chain depends on international trade,” said Krysta Harden, President and CEO of USDEC. “We’re thrilled the ambassador could visit the farm to see for herself how America’s dairy farmers are producing for the global marketplace. We appreciate both of their personal efforts to ensure Canada meets its tariff-rate quota obligations under the U.S.-Mexico-Canada Agreement (USMCA).”
China's Second Quarter Pork Output Best in 7 Years
China's second-quarter pork production surged to its highest in at least seven years, official data showed on Thursday, after producers launched thousands of new breeding farms last year to rebuild a hog herd decimated by the African swine fever.
Pork output for April-June was 13.46 million tonnes, up 40% compared with the same period last year and well above the usual 10 million tonnes during this period, according to Reuters' calculations based on official data.
The National Bureau of Statistics said China's pork output jumped 35.9% in the first half of 2021 versus a year earlier to 27.15 million tonnes.
China typically produces its lowest levels of pork in the second quarter, after consumption wanes following the Spring Festival in the first quarter and as warmer weather reduces appetite for meat.
But this year, the surge in pork production was led by the largest producers who invested billions of yuan in new farms during 2020 in a bid to grab market share in the aftermath of the swine fever epidemic.
Sales data from 16 listed hog producers showed they produced 42.8 million hogs for slaughter in the first half, an increase of more than 100% over the prior year, said Boya Consulting in a report on Wednesday. But that surge in volume pressured live hog prices, which shed about 65% from January to June, leaving many with significant losses for the period.
Pork is the most widely eaten meat in China, and its prices are a key component of the country's consumer inflation index.
No.2 hog producer Jiangxi Zhengbang Technology Co Ltd said it will post a loss of up to 1.45 billion yuan for the first half because of pressure from falling hog prices.
RFA: D.C. Circuit Court Blasts Refiner Arguments on RFS
The Renewable Fuels Association today welcomed the D.C. Circuit Court’s outright rejection of arguments from oil refiners that the Renewable Fuel Standard causes them economic hardship and therefore the Environmental Protection Agency should have waived their 2019 RFS obligations. The court’s rebuke of the refiners’ arguments was part of a decision published today regarding litigation involving many parties on the 2019 RFS volume requirements. Today’s decision also discards arguments from the refiners regarding the RFS point of obligation and treatment of exported renewable fuels.
“The court saw right through the many specious arguments raised by the oil refiners in this litigation, and today’s decision is a strong repudiation of the false narrative refiners continue to push about the Renewable Fuel Standard,” said RFA President and CEO Geoff Cooper. “RFA was pleased to see the court methodically reject the refiners' claims one by one, and this ruling should dispel the myth—once and for all—that the RFS somehow harms oil refiners. We hope Congress and the Administration pay close attention to what the court had to say today about the real economic impacts of the RFS on refiners.”
Severe Economic Harm Waiver: The court rebuffed the refiners’ argument that EPA should have waived the 2019 RFS requirements because East Coast refiners purportedly could not pass through their RFS compliance costs and thus experienced “severe economic harm.” According to the judges, “Obligated parties assert that the ‘pass-through’ theory is flawed and that RFS requirements impose severe economic consequences on refiners in the Eastern United States. We reject this challenge. EPA reasonably concluded that obligated parties had failed to make the strong causal showing required to trigger the waiver.” The court added, “It was reasonable for EPA to conclude that RFS costs alone were not the primary driver of the refineries' economic difficulties.”
Inadequate Domestic Supply Waiver: The court also shot down the refiners’ claim that a waiver of 2019 RFS requirements would have been justified due to an “inadequate domestic supply” of renewable fuels to meet the standards. “EPA adequately explained its refusal to exercise the inadequate domestic supply waiver,” the judges wrote.
Point of Obligation: Refiners also argued that EPA should have used the 2019 RFS rulemaking to change the “point of obligation” for RFS compliance from refiners and importers to fuel blenders. But the court discarded that argument as well, stating “Refiners have repeatedly but unsuccessfully urged EPA to include blenders in the point of obligation…EPA’s decision not to undertake another reassessment in the 2019 rulemaking was not an abuse of discretion.”
Exported Renewable Fuel: The court similarly rejected refiner arguments that exported renewable fuels should count toward RFS compliance. “EPA at no point suggested that it was substantively reconsidering its longstanding policy concerning the treatment of exported renewable fuel, and it reasonably refused to consider obligated parties’ arguments for changing that policy…” the judges wrote.
Meanwhile, environmental petitioners involved in the litigation argued that EPA’s “aggregate compliance” approach for assessing the impact of the RFS on agricultural land use is “in violation of the Clean Air Act’s text.” The court disagreed and dismissed the environmental groups’ challenge because it was untimely.
NGFA commends House appropriators for securing waterways navigation project funding
The National Grain and Feed Association (NGFA) commended the House Appropriations Committee today for approving a Fiscal Year 2022 energy and water appropriations bill by a 33-24 vote that includes critical waterways funding for the Navigation and Ecosystem Sustainability Program (NESP).
The $53.2 billion energy and water appropriations bill funds agencies including the Department of Energy, Army Corps of Engineers and Bureau of Reclamation.
Importantly, the bill includes $22.5 million for NESP, a U.S. Army Corps of Engineers program dedicated to navigation improvements and ecological restoration for the Upper Mississippi River – Illinois Waterway (UMR-IWW).
Reps. Cheri Bustos, D-Ill., Ashley Hinson, R-Iowa, Blaine Luetkemeyer, R-Mo., and Sam Graves, R-Mo., secured the provision in the FY 2022 spending bill approved by the House Appropriations Energy and Water Subcommittee earlier this week.
“NGFA thanks House appropriators for continuing to recognize the urgent need to modernize U.S. locks and dams by securing this crucial construction funding for NESP,” said NGFA President and CEO Mike Seyfert. “It is well known that the majority of the nation’s locks and dams have outlived their 50-year design life. As our infrastructure deteriorates, the U.S. falls further behind the competition in the global marketplace. NGFA members urge Congress to enact this crucial investment in NESP to rebuild America’s inland waterway infrastructure.”
Congress first authorized NESP in 2007, but the program has not received any construction funding. Meanwhile, the vast majority of locks on the Upper Mississippi River and Illinois Waterway (UMR-IWW), built in the 1930s and 1940s with 600-foot chambers, have long-surpassed their design life. NESP would expand the navigation capacity along the UMR-IWW through the construction of seven new 1,200-foot locks and dams. New and modernized NESP locks would allow a 15-barge tow to pass through in just one lockage, increasing efficiency and boosting U.S. competitiveness.
“By including this construction project funding for NESP, Reps. Bustos, Hinson, Graves and Luetkemeyer have helped bring the U.S. another step closer in the long-term effort to build new locks on the UMR-IWW which will spur job creation and help ensure that the U.S. remains competitive as a world grain exporter,” Seyfert said. “For example, the U.S. is no longer the world’s top soybean exporter and key competitors continue to lower their transportation costs by investing in infrastructure. Research from the U.S. Department of Agriculture suggests that unless significant improvements are made to farm-to-port infrastructure, U.S. world market share could decline an additional 3-6 percentage points, resulting in $1.5 billion to $3 billion in lost export sales.
“NESP is crucial to maintaining a strong U.S. transportation infrastructure system that provides producers and agribusinesses with options and a strong comparative advantage, fostering the ability to efficiently and competitively serve domestic and global markets.”
NGFA and partnering waterways stakeholders urge the House and Senate to include NESP funding in final appropriations packages.
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