Thursday September 2 Ag News

 Ricketts Submits Comments Opposing President Biden’s Waters of the U.S. Overreach

This week, Governor Pete Ricketts submitted official comments to the Environmental Protection Agency (EPA) in response to its request for feedback as it proposes to redefine “Waters of the United States” (WOTUS) within the Clean Water Act.  Expansion of the WOTUS definition would broaden the scope of federal regulation under the Act and subject Nebraskans to burdensome regulations.

“The definition of WOTUS has a direct and meaningful impact on Nebraska farmers, ranchers, industries, developers, homebuilders, and others whose proposed projects or developments may be required to obtain permits and approval from federal agencies,” wrote Gov. Ricketts in his letter.

In 2015, the Obama Administration rewrote the definition of WOTUS in an effort to increase the EPA’s regulatory jurisdiction.  The State of Nebraska successfully mounted a legal challenge in opposition to the federal overreach.  Now, the Biden-Harris Administration is again trying to assert control over states’ water management.

In his letter to the EPA, the Governor reaffirmed the State of Nebraska’s authority to manage its own water resources.  He called for “a definition of WOTUS that provides for limited federal jurisdiction.”

“Nebraska and its regulatory agencies have clear authority and are well equipped to protect waters of the state,” wrote Gov. Ricketts.  “States are best positioned to manage the water within their borders because of their on-the-ground knowledge of the unique aspects of their hydrology, geology, and legal frameworks.  As such, waters of the state, such as agricultural waters, including farm ponds, stock ponds, and irrigation ditches, and man-made dugouts, pits, and ponds used for irrigation, should be subject to the exclusive regulatory authority of the State.”

The Governor’s letter on WOTUS was co-signed by the directors of the State of Nebraska’s Department of Environment and Energy, Department of Agriculture, and Department of Natural Resources.



Safety and compliance the focus of 3-Day Biochemical Manufacturing Workshop

Nebraska ranks second in the nation as a producer of ethanol, employing over 1,400 individuals across the state.  Maximizing efficiency, safety and regulatory compliance drive the need for effective operations and management training.  The Nebraska Manufacturing Extension Partnership (MEP), the UNL College of Engineering, and the Nebraska Ethanol Board continue to work together to provide annual opportunities to educate and reinforce best practices for the biochemical industry.  The latest offering is “Process Hazard Analysis”, a three-day workshop designed to properly plan, execute and utilize process hazard plans and tools. The hands-on class is being held October 26-28 at Novozymes in Blair, NE.

Hunter Flodman, associate professor of practice for UNL’s College of Engineering has made the rounds to many of the state’s ethanol plants, large and small.  “Safety has always been a top priority of the ethanol industry,” says Flodman.  “Every plant maintains a Process Safety Management program with the purpose of identifying hazards and managing risk.  Our goal was to create a series of trainings that would allow ethanol plants to share best practices related to process safety while also learning from renowned experts like Philip Myers.”       

Since 2017, the Nebraska MEP and its partners have provided workshops specific to the biochemical industry, including “Process Safety Management” and “Process Control Essentials”, most recently offered in August. “For the past 3 years we have offered a very good Process Safety Management course,” says Matthew Jorgensen, project specialist for the Nebraska MEP.  “That was a 3-day overview of the must have elements of any capable PSM system for chemical production facilities, especially as it relates to OSHA’s regulatory requirements. For this year, we decided it was time to take one of these critical elements and go much more in-depth.”

Through the support of the College of Engineering, the Nebraska Ethanol Board, and Novozymes, the MEP enlisted Philip M. Myers, president of Advantage Risk Solutions to lead the PHA workshop. ”Process Hazard Analysis is arguably the single most important part of a process safety management and risk management program,” says Myers. “The focus of PHA is identification of hazardous scenarios.  If you don’t identify them, you can’t manage them.”

The “hands-on” aspect of the workshop also presents a deeper learning experience for the participant.  “This course will provide in-depth training in Process Hazard Analysis,” Myers added. “From regulatory requirements and recent actions, to hazard identification methodologies, how to ensure effective studies are conducted, identify, and provide information and resources needed, and how to best manage outputs of team studies for decision making and implementation in the plant.  It’s the “A-Z” PHA course for those who manage and oversee PHAs as part of process safety and risk management or EHS programs, and for technical personnel that participate in them.”

Course participants receive certificates of completion and participants are awarded 20 professional development hours (2.0 CEUs). Partial tuition reimbursement is offered to the first 20 qualifying registrants by the Nebraska Ethanol Board.  For detailed information and advance registration, go to https://go.unl.edu/processsafety.



Nebraska Agri-Business Association Holds 44th Summer Convention with Record Attendance Announces New Board Members and Officers, Industry Awards

The 44th Nebraska Agri-Business Association Summer Convention was held August 24-25, 2021 at the Holiday Inn Convention Center in Kearney, Nebraska with record attendance. This two-day event consisted of educational training on drone application, the carbon offset market and government policy issues concerning agriculture. The association welcomed Congressman Adrian Smith from Nebraska’s Third District, Sam Pendleton with Rantizo, Dr. Nick Ward with Ward Laboratories and Richard Gupton from Agricultural Retailers Association as guest speakers.

Attendees enjoyed an opportunity to learn, network, socialize and honor the contributions of ag industry professionals during the two-day meeting and awards reception.

Dan Stork was elected Chairman of the Association. He is currently a sales representative with Syngenta Crop Protection in York, Nebraska. Stork thanked outgoing Chairman, Brad Dillan, for his service and leadership during a year with multiple challenges. “Brad’s steady leadership kept our organization on track and focused on providing service to our membership,” said Stork.

Other newly elected officers and directors included; Vice Chairman, Brock Emery with Landmark Implement from Minden, Finance Chairman, Bryan Hoffman, Agronomy Manager for Farmers Pride in Battle Creek, Director, Pete Cullan, Country Partners Cooperative in Gothenburg and Michael Killinger, Trotter Fertilizer in Arcadia.

Awarded the Robert L. Anderson Industry Person of the year was Rex Riedy, Sales Specialist with Landmark Implement in Grand Island, Nebraska. This award honors a member of the Nebraska Agri-Business Association for their exemplary service to the industry. Rex has trained and worked with countless applicators and retailers throughout Nebraska with over 40 years working in agriculture.

The Industry Partner Award was presented to Dr. Charles Wortmann, University of Nebraska Agronomy and Horticulture Department. The award highlights individuals who have contributed to agriculture in a significant way through their profession. A Professor Emeritus following his retirement this year, Dr. Wortmann’s research, presentations and recommendations have led to improved farming practices and protected our state’s most valuable natural resources, soil and water.

Congratulations to our new Board Officers, Directors and award winners.

The Nebraska Agri-Business Association is a trade association representing agricultural retailers, applicators, distributors and manufacturers of agriculture input products, supplying and servicing Nebraska’s farmers and ranchers. Our members produce, sell and provide custom application of fertilizer and crop protection chemicals.



IDALS Announces In-Person and Online Pesticide Applicator Testing Options

Iowa Secretary of Agriculture Mike Naig announced today that the Iowa Department of Agriculture and Land Stewardship’s Pesticide Bureau will offer in-person and online pesticide applicator testing options for commercial and private applicators this fall. The Department encourages commercial and private pesticide applicators to test and apply for certification this fall to avoid delays in the spring.
In-Person Testing

The Department is partnering with Iowa State University Extension and Outreach to host in-person applicator testing sessions starting in September. In-person testing sites are located in Black Hawk, Cerro Gordo, Dallas, Dubuque, Humboldt, Jasper, Johnson, Jones, Scott and Woodbury counties. In-person commercial and private applicator testing is free. Pre-registration is required. Applicators can visit iowaagriculture.gov/pesticide-bureau/guidance-person-pesticide-exam-sites to reserve a spot.
Online Private Pesticide Applicator Testing

Private pesticide applicators who want to obtain or renew their certifications can register to take the private certification exam online. To register for the online exam, visit iowaagriculture.force.com/pesticideapplicator/s/login/.

Online Commercial Pesticide Applicator Testing
Commercial pesticide applicators can create an account to take the online exam at data.iowaagriculture.gov/pest_signup/#online. The online exams are monitored, recorded and reviewed by a third-party proctoring service. A web camera, high-speed internet connection and government-issued photo ID card are required for online testing. There is a $25 fee for each commercial pesticide applicator test completed online, payable directly to the third-party online testing service.

Commercial pesticide applicators will receive a preliminary pass/fail test result as soon as they complete the online exam; these preliminary results cannot be used to apply for pesticide applicator certification. The third-party proctoring service will certify the test results and send the final scores to the email address used to register for the exam. Feedback on test results is only available at in-person testing sites and will not be provided for online exams.

For information about the commercial pesticide applicator online exam, visit data.iowaagriculture.gov/pest_signup/#online.

Apply for Pesticide Applicator Licenses Online
Once applicators pass the online or in-person exam, they should use their certification number to log-in to the Department’s pesticide self-service portal to submit their application, test results and payment. Once the application, payment, training and testing information are received and processed by the Pesticide Bureau, the licenses and certifications will be sent directly to the applicants.

For more information, contact the Iowa Department of Agriculture and Land Stewardship’s Pesticide Bureau at (515) 281-8591 or pesticides@iowaagriculture.gov.




Farmers Encouraged to Place Propane Orders, Take Deliveries Now

Iowa Secretary of Agriculture Mike Naig urges farmers and agribusinesses to evaluate how much propane they’ll need to meet grain drying and home and livestock heating demands this fall and winter. Propane users should anticipate and suppliers should make plans to accommodate increased propane demands this fall.

“The Iowa Department of Agriculture and Land Stewardship works closely with the Governor’s Office, the Iowa Department of Transportation, the Iowa Propane and Gas Association, and other industry stakeholders to monitor growing season conditions and potential impacts to the harvest season,” said Secretary Naig. “It’s important for farmers and rural residents to start evaluating their propane needs early and get contracts in place with their suppliers now. I also encourage farmers to take advantage of early booking discounts and top off their propane tanks before harvest begins.”

Planning Resources for Farmers
High-moisture corn must be dried before the grain can be stored in the bin to prevent grain quality issues. The Iowa State University Extension and Outreach Grain Drying Economics Module helps farmers work through corn drying and marketing decisions.

The Propane Education and Research Council (PERC) has created a grain dryer propane use calculator to help crop farmers determine how much propane they may need this fall. Farmers can access the calculator at propane.com/propane-products/grain-dryers/. Enter the number of crop acres, the average anticipated yield per acre, and how much moisture may need to be removed from the crop to estimate how many gallons of propane may be needed.

The Iowa State University Extension and Outreach Grain Quality Initiative also has resources to help agricultural decision-makers work through grain drying, storage and quality considerations.

Planning Resources for Suppliers
The National Propane Gas Association has developed an “ABCs of Supply Preparation” checklist. This tool guides propane suppliers through demand, supply, logistics, storage, and customer considerations to help decision-makers plan their fall inventories.

Suppliers can track Iowa propane demands, inventory levels and prices on the Iowa Propane Trends and Statistics website. This is a public resource that was launched in January 2020 by the Iowa Department of Agriculture and Land Stewardship and Iowa Department of Transportation to increase the visibility of key metrics that impact the propane supply chain in Iowa.

Data released Aug. 25 for the week ending Friday, Aug. 20, 2021, shows U.S. propane stocks were at 68.75 million barrels or 63.7 days of supply. This shows an increased inventory of 1.988 million barrels from the previous week. The U.S. propane inventory is expected to build over the next few weeks and peak around 78 million barrels. Midwest propane supplies stand at 21.595 million barrels, down from 25.26 million barrels at this time last year.

Iowa Propane Stakeholders Group
In the fall of 2019, Iowa experienced some propane supply challenges because grain drying demands caused by the late planting season coincided with an early cold snap that increased livestock and home heating needs.

Secretary Naig and the Iowa Department of Agriculture and Land Stewardship convened a group of propane stakeholders, including the Iowa Governor’s office, members of the Iowa Legislature, Iowa Propane Gas Association, propane suppliers, and several agricultural groups to anticipate and take action to prevent future propane supply issues.

If farmers or agribusinesses experience propane shortages, they should notify Paul Ovrom at the Iowa Department of Agriculture and Land Stewardship at 515-242-6239 or paul.ovrom@iowaagriculture.gov, or Deb Grooms at the Iowa Propane Gas Association at 515-564-1260 or dgrooms@iapropane.org.



Farm Sector Profits Forecast to Increase in 2021
USDA Economic Research Service

Net farm income, a broad measure of profits, is estimated to have increased by $15.5 billion (19.6 percent) in 2020 relative to 2019 and is forecast to increase by another $18.5 billion (19.5 percent) in 2021. Forecast at $113.0 billion in 2021, net farm income would be at its highest level since 2013 and 20 percent above its 2000–20 average of $93.9 billion when prior years are adjusted for inflation. In inflation-adjusted 2021 dollars, net farm income is forecast to increase by $15.0 billion (15.3 percent) in 2021 from the previous year.

Net cash farm income, which increased by $4.0 billion (3.7 percent) in 2020, is forecast to increase by $23.8 billion (21.5 percent) to $134.7 billion in 2021. When adjusted for inflation, net cash farm income is forecast to increase by $19.8 billion (17.2 percent) from 2020. Net cash farm income in 2021 would be at its highest level since 2014 and 19 percent above its 2000–20 average of $111.4 billion. Net cash farm income encompasses cash receipts from farming as well as farm-related income, including Government payments, minus cash expenses. It does not include noncash items—including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings—reflected in the net farm income measure above.

Cash receipts from the sale of agricultural commodities are forecast to increase by $64.3 billion (18.0 percent, in nominal terms) from 2020 to $421.5 billion in 2021, driving most of the increase in both net income measures. Total crop receipts are expected to increase by $37.9 billion (19.7 percent) from 2020 levels following higher receipts for corn and soybeans. Total animal/animal product receipts are expected to increase by $26.5 billion (16.0 percent) with increases in receipts for hogs, cattle/calves, and broilers.

Lower direct Government payments and higher production expenses in 2021 are expected to only partially offset higher cash receipts. After increasing by $23.2 billion (103.5 percent) in 2020 relative to 2019, direct Government farm payments are forecast to fall by $17.7 billion (38.6 percent) from $45.7 billion in 2020 to $28.0 billion in 2021. The expected decrease is largely because of lower supplemental and ad hoc disaster assistance for COVID-19 relief in 2021 compared to 2020. Total production expenses, including operator dwelling expenses, are forecast to increase by $26.1 billion (7.3 percent) to $383.5 billion (in nominal terms) in 2021. Spending on nearly all categories of expenses is expected to rise.

Average net cash farm income for farm businesses is forecast to increase by $10,000 (11.9 percent) to $93,700 per farm in 2021. However, the regional average net cash farm income outlook is mixed. For farm businesses in the Heartland, Northern Great Plains, Prairie Gateway, Eastern Uplands, and Mississippi Portal average net cash farm income is forecast to increase in 2021, but decline in the Northern Crescent, Southern Seaboard, Basin and Range, and Fruitful Rim. Farm businesses specializing in hogs and corn are expected to see the largest growth in average net farm income in 2021; farm businesses specializing in dairy, cotton, and specialty crops are expected to see a decline in average net farm income in 2021.

Farm sector equity is forecast up by $80.0 billion (2.9 percent) to $2.81 trillion (in nominal terms) in 2021. Farm assets are forecast to increase by $79.0 billion (2.5 percent) to $3.25 trillion in 2021, largely reflecting anticipated increases in the value of real estate. Farm debt is forecast to be relatively unchanged in 2021, decreasing by $1.0 billion (0.2 percent) to $443.9 billion (in nominal terms). While real estate debt is forecast to increase in 2021, non-real estate debt is forecast to decline. The farm sector debt-to-asset ratio is expected to fall from 14.02 percent in 2020 to 13.64 percent in 2021—the first decline since 2012. Working capital, which measures the amount of cash available to fund operating expenses after paying off debt due within 12 months, is forecast to increase by 13.8 percent from 2020. When adjusted for inflation, farm sector equity and assets in 2021 are forecast to decline by about 1 percent from 2020.

Median Income of Farm Operator Households Estimated to Fall in 2020, and Forecast to Fall Further in 2021
Median total farm household income is estimated to decrease to $80,314 in 2020 and then forecast to fall further in 2021 to $79,909. That is a nominal decrease of 3.4 percent (a 4.5 percent decline after inflation) between 2019 and 2020, and a 0.5 percent nominal decrease (a 4 percent decline after inflation) in 2021.

Farm households typically receive income from both farm and off-farm sources. Median farm income earned by farm households is estimated to decrease in 2020 to -$1,248 from $296 in 2019, and then forecast to decline further to -$1,387 in 2021. The positive median farm income in 2019 was unusual as median farm income earned by farm households was negative each year between 1996 and 2018. Many farm households rely on off-farm income: median off-farm income in 2020 is estimated at $66,779, a decrease of 2.9 percent. This decline is because of lower earned income—income from wages, salary, and nonfarm businesses—that is not fully offset by higher unearned income—income from interest, investments, pension and retirement accounts, unemployment compensation and other public transfers. In 2021, median off-farm income is forecast to rise by 2.5 percent to $68,461. Since farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.



USDA to Host Educational Webinar on New Livestock Mandatory Reporting Information

The U.S. Department of Agriculture (USDA) will host an educational webinar about USDA’s Livestock Mandatory Reporting (LMR) program and newly released cattle market information covering formula transactions and net price distribution on September 21, 2021, from 4:00 p.m. to 5:00 p.m. Central Time. The webinar is part of the ongoing cattle industry outreach conducted by the USDA Cattle and Carcass Training Centers (CCTCs). While anyone can attend the webinar, it is targeted to producers, feeders and other stakeholders who want a better understanding of LMR and how this information can inform real-world marketing decisions at the farm, feedlot and other points in the supply chain.

In this webinar, USDA Market News staff will provide an overview of the new Daily Direct Formula Base Cattle reports and the National Weekly Cattle Net Price Distribution report. As formula trades comprise a growing share of cattle purchases, this webinar will provide more clarity into price, volume and other characteristics of these transactions. USDA staff also will provide an overview of the new Grading Dashboard.

The Agriculture Improvement Act of 2018 (Farm Bill) directed USDA to establish the CCTCs in order to conduct activities that will limit subjectivity in the application of beef grading standards, provide producers with greater understanding of the value of their cattle, and provide investors more confidence in the cattle delivery system. USDA’s Agricultural Marketing Service (AMS) signed agreements in 2019 to establish the CCTCs at West Texas A&M University in Canyon, Tex.; Colorado State University in Fort Collins, Colo.; and at the USDA Agricultural Research Service’s U.S. Meat Animal Research Center in Clay Center, Neb.

Information about this webinar, including how to pre-register, is on the AMS website https://www.ams.usda.gov/grades-standards/beef/cattle-carcass-training-centers.



USDA to Offer New Insurance Option for Conservation-Minded Corn Farmers Who ‘Split-Apply’ Nitrogen

Corn farmers who “split apply” nitrogen will soon have another option for insurance coverage. Beginning in crop year 2022, the U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) will offer the Post Application Coverage Endorsement (PACE) in certain states for non-irrigated corn, providing coverage for producers who use this practice that is considered better for natural resources and saves money for producers.

To “split-apply” nitrogen, growers make multiple fertilizer applications during the growing season rather than providing all of the crop’s nitrogen requirements with a single treatment before or during planting. The PACE will provide payments for the projected yield lost when producers are unable to apply the in-season nitrogen application.

“USDA is committed to building insurance options that encourage use of practices that are better for the environment and for producers’ bottom lines,” said RMA Acting Administrator Richard Flournoy. “We are able to offer the PACE thanks to the cooperation of our partners, including the Illinois Corn Growers Association, National Corn Growers Association, Ag-Analytics Technology Company and Meridian Institute.”

“Split application” of nitrogen can lead to lower input costs as well as helps prevent runoff or leaching of nutrients into waterways and groundwater. This is because it is used in more targeted amounts over multiple applications, rather than one large application.

This new crop insurance option builds upon RMA’s efforts to encourage use of conservation practices, including cover crops. For example, RMA recently provided premium support for producers who planted cover crops to help offset impacts from the pandemic. Meanwhile, RMA recently updated policy to allow producers with crop insurance to hay, graze or chop cover crops at any time and still receive 100% of the prevented planting payment. This policy change supports use of cover crops, which can help producers build resilience to drought.

The Federal Crop Insurance Corporation Board approved the PACE recently, and RMA will share additional details later this year. The sales closing date for the endorsement will be the same as the producer’s underlying corn policy.



U.S. Ethanol Exports Receded in July, While Distillers Grains Exports Strengthened
Ann Lewis, Senior Analyst, Renewable Fuels Assoc.
    
U.S. ethanol exports slumped 37% in July to 51.6 million gallons (mg), the lowest level since October 2013, as former key destinations Brazil, China and India were nearly absent from the market. For the fourth straight month, Canada was the top destination, taking 29.2 mg, down 13% from June. Shipments to South Korea, a top-five customer since February, were 5.3 mg, down 67%. Other leading markets included the Netherlands (4.0 mg, up 6%), Singapore (2.4 mg, the largest volume since Feb. 2018), Mexico (2.2 mg, down 59%), and Colombia (1.5 mg, down 23%). Exports to Finland (2.0 mg), Saudi Arabia (1.7 mg), and the United Kingdom (1.1 mg) rebounded from nominal levels in June. Shipments over the first seven months of the year were 715.9 mg, down 9% from the same period in 2020.

U.S. imports of ethanol ticked up slightly to 12.7 mg, all of which was from Brazil.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—expanded 13% to 1.06 million metric tons (mt). Exports to Mexico were 247,511 mt (rising 6%), representing nearly a quarter of all U.S. DDGS shipments in July; it remained our top customer for the tenth consecutive month. DDGS sales to Turkey were 151,738 mt, nearly triple the volume exported in June and a three-year high. Exports also accelerated to Vietnam (151,449 mt, up 27% to the largest volume since Nov. 2018), South Korea (88,867 mt, up 22%), Canada (70,014 mt, up 26% to the largest volume in two years), Indonesia (66,903 mt, up 9%), and China (doubling to 35,054 mt). Total DDGS exports through July were 6.49 million mt, 8% ahead of last year.



Chairman David Scott and Democratic Committee Members Issue Letter Expressing Concern Regarding Biotech Trade Barriers

House Agriculture Committee Chairman David Scott and several Democratic Members of the Committee issued the following letter to Secretary of Agriculture Tom Vilsack and U.S. Trade Representative Ambassador Katherine Tai regarding non-tariff trade barriers imposed on agricultural biotechnology products. In the letter, Chairman David Scott and Members express concern that these trade barriers undercut key elements of the Biden Administration’s Trade Policy Agenda and offered their support for stronger enforcement action.

The full text of the letter is as follows:

Dear Secretary Vilsack and Ambassador Tai:

As members of the House Agriculture Committee, we write to express our appreciation for your efforts to enforce our trade agreements and to resolve agricultural trade barriers. We noted that among its top priorities, the Biden Administration’s Trade Policy Agenda emphasized expanding export markets for farmers and ranchers, fighting climate change, and enforcing the rules. We support these priorities and are concerned that the continued non-tariff trade barriers that trading partners impose on agricultural biotechnology products undercut those parts of the agenda.

As we press forward collectively to confront the existential, global threats of climate change and food and nutritional insecurity, it is essential that farmers have as many tools as possible. Biotechnology is one important tool that can facilitate sustainable solutions in agriculture and help combat climate change. Biotechnology crops enable agricultural practices—such as no-till farming—which can help sequester carbon, reducing greenhouse gases.

When trading partners erect non-tariff barriers to these technologies, their actions have a chilling effect on global adoption and commercialization of new technologies. As a result, farmers at home and abroad are forced to choose between innovative technologies or access to foreign markets. China and Mexico are two nations that are failing to comply with their commitments to science-based, and timely regulatory approval processes.

China has long subjected agricultural biotechnology products to import approval process delays. Under the U.S.-China Phase One agreement, China committed to predictable and consistent average timelines for regulating biotechnology products for import and agreed not to request information unnecessary for assessing the safety of a product for its intended use. However, nearly a year and a half into the two-year agreement, timelines for product approvals for import still average more than seven years. We encourage you to hold China accountable to this Phase-One commitment so that American farmers maintain access to these innovative production tools.

Despite committing to enhanced biotechnology measures and sanitary and phytosanitary standards in the U.S.-Mexico-Canada Agreement (USMCA), Mexico has demonstrated a troubling reversal in its treatment of U.S. biotechnology products. Mexico’s regulatory authority has not issued a biotechnology approval in over three years. In addition, the Government of Mexico published a decree on December 31, 2020, intending to ban the use of biotechnology corn by 2024. As a result, US farmers are at risk of losing access to a critical market should they choose to use biotechnology tools. We appreciate your willingness to raise Mexico’s delays in agricultural biotechnology product import approvals during your bilateral engagements and ask that you raise concerns related to the decree as well. If dialogue does not resolve these issues, we encourage you to leverage a range of enforcement tools at your disposal to enforce the USMCA.

We stand with you as you confront these trade barriers and impress upon our partners the value of biotechnology as a tool that can benefit climate smart agricultural production, food security, and society. Please let us know how Congress can support you in your efforts to achieve a fairer playing field and to ensure that an important climate tool is not unnecessarily restricted.

Sincerely,
Chairman David Scott
Rep. Jim Costa
Rep. Stacey Plaskett
Rep. Angie Craig
Rep. Jimmy Panetta
Rep. Cindy Axne
Rep. Cheri Bustos
Rep. Abigail D. Spanberger



Thompson: Biden Tax Plan Full of False Promises

In response to the White House continually spreading misinformation and false promises regarding the impact of President Biden’s tax plan on America’s family farms and businesses, Republican Leader of the House Agriculture Committee, Glenn “GT” Thompson, issued the following statement:

“President Biden continues to make major, complex tax policy promises without explaining how they will work. Farmers, ranchers, and small businesses’ livelihoods are at stake. Family businesses are far more important than feel-good, 'tax-the-rich' messaging from this Administration and Twitter activists. There are real families and real farms the President is putting in jeopardy,” Thompson said.

In June, Republican Leader Thompson and Senator Boozman, Republican Leader of the Senate Committee on Agriculture, Nutrition, and Forestry, announced a report from the experts at Texas A&M University’s Agricultural and Food Policy Center (AFPC) detailing the devastating impact President Biden’s tax code changes could have on family farms. The report found 92 of AFPC’s 94 farms in the study would be impacted with an average additional tax liability of more than $720,000 per farm.

“While the White House may want to disregard the work of AFPC, the reality is hard-working men and women that feed, clothe, and power our nation and the world will be irreparably harmed from these policies,” Thompson continued. “If President Biden is so confident his plan will adequately exempt full-time family farmers from these punitive taxes, then I urge him to release the details of this alleged exemption immediately.”

The AFPC study could not model an agriculture exemption because the President and his allies have repeatedly refused to explain how such an exemption will function in practice. To date, we have heard only platitudes and hollow promises to protect farmers. With no proposed agriculture exemption to consider, fundamental questions remain, including:

    What family members would be eligible?
    What activities must be undertaken to qualify?
    What will happen if some heirs farm and some heirs do not?
    How will this new tax burden interact with current tax law, including depreciation, the gift exclusion, and inheritance taxes?
    How will tangible personal property be defined and treated?

“I thank my Democratic colleagues on Committee, including Chairman Scott, who have been vocal in opposition to the President’s tax agenda as it relates to farm families. Unfortunately, marking up the Agriculture Committee’s provisions of the reconciliation package without assurances from the White House that these proposals are off the table is a de facto endorsement of them,” Thompson concluded.  



USGC Latin America Office Hosts In-Person Program, Attends FAS Cooperators Meeting

Through the cooperators meeting of the USDA Foreign Agricultural Service (FAS) Central American Northern Triangle offices, the U.S. Grains Council (USGC) was able to connect with end-users of feed grains in Guatemala, while also meeting with key stakeholders in the poultry and livestock industries. In addition, speakers and attendees discussed the comfort levels of those in the region given the ongoing pandemic.

While in Guatemala, the Council’s Latin America office conducted an in-person feed grains program, the first in-person event since March 2020. Ana Ballesteros, USGC’s Latin American marketing director for feed grains, visited Guatemala in mid-August to facilitate the trade servicing program, while also participating in the FAS cooperators meeting.

"Although we have been able to keep in touch with those end-users virtually, being able to talk with them in person allowed for a better understanding of their situations,” Ballesteros said.

Following the appropriate safety measures in the area, the Council met with six organizations while in Guatemala, some of which allowed for on-site visits. USGC visited Alimentos S.A., that processes corn for human consumption, and Comayma, a feed-producing cooperative. Ballesteros also met with the Guatemalan Pork Producers Association (APOGUA), the Guatemalan Poultry Producers Association (ANAVI), the Dairy Producers Chamber and the Central Agricola Group on behalf of the Council.

By learning more about each organization and the challenges they have faced since the beginning of the pandemic, USGC is better able to plan its programs for the future.

“Having the in-person meetings helped the Council identify additional activities to conduct even under current restrictions,” Ballesteros said. “It also helped to understand the impact that the first year of the pandemic had on industries and their expectations moving forward.”

Guatemala imported 1.2 million metric tons (MT) (47.2 million bushels) of U.S. corn and 74 thousand MT of U.S. DDGS in the 2020-21 marketing year.



USDA Seeks Comments on the Labeling of Meat and Poultry Products Derived from Animal Cells

The U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) published today an advance notice of proposed rulemaking (ANPR) to solicit comments and information regarding the labeling of meat and poultry products made using cultured cells derived from animals under FSIS jurisdiction. FSIS will use these comments to inform future regulatory requirements for the labeling of such food products.

“This ANPR is an important step forward in ensuring the appropriate labeling of meat and poultry products made using animal cell culture technology,” said USDA Deputy Under Secretary for Food Safety Sandra Eskin. “We want to hear from stakeholders and will consider their comments as we work on a proposed regulation for labeling these products.”

On March 7, 2019, USDA and FDA announced a formal agreement to jointly oversee the production of human food products made using animal cell culture technology and derived from the cells of livestock and poultry to ensure that such products brought to market are safe, unadulterated and truthfully labeled. Under the agreement, FDA will oversee cell collection, growth, and differentiation of cells. FDA will transfer oversight at the cell harvest stage to FSIS. FSIS will then oversee the cell harvest, processing, packaging, and labeling of products. FDA and FSIS also agreed to develop joint principles for the labeling of products made using cell culture technology under their respective labeling jurisdictions. Seafood, other than Siluriformes fish, falls under FDA’s jurisdiction, whereas meat, including Siluriformes fish, and poultry are under FSIS’ jurisdiction.

Other than new labeling regulations concerning this product, FSIS does not intend to issue any other new food safety regulations for the cell-cultured food products under its jurisdiction. Current FSIS regulations requiring sanitation and Hazard Analysis and Critical Control Point (HACCP) systems are immediately applicable and sufficient to ensure the safety of products cultured from the cells of livestock and poultry.

FSIS already has received thousands of comments on the topic, in response to a 2018 joint public meeting with FDA and regarding two petitions for rulemaking (from the United States Cattlemen’s Association and Harvard Law School Animal Law and Policy Clinic). The agency, however, needs specific types of comments and information that will inform the process of developing labeling regulations for meat and poultry products made using animal cell culture technology.

The ANPR is requesting comment on specific topics to be considered during rulemaking related to statutory and regulatory requirements for the labeling of these meat and poultry products: consumer expectations about the labeling of these products, especially in light of the nutritional composition and organoleptic qualities (taste, color, odor, or texture) of the products; names for these products that would be neither false nor misleading; economic data; and any consumer research related to labeling nomenclature for products made using animal cell culture technology.

The ANPR also discusses how FSIS will generally evaluate labels for these products if they are submitted before the agency completes rulemaking.

There is a 60-day period for comment on the ANPR. To view the ANPR and information on how to comment or submit information, visit the FSIS website at www.fsis.usda.gov/policy/federal-register-rulemaking/federal-register-rules.



NMPF Pursuing Needed Fixes on Disaster Assistance and Class I Mover
Jim Mulhern, National Milk Prod. Federation President & CEO    
    
Dairy farmers welcomed assistance from USDA in August via the new Dairy Donation Program, which NMPF championed through the legislative process; adjustments to the Dairy Margin Coverage program; and the new Pandemic Market Volatility Assistance Program, which will partially reimburse farmers for losses that arose from how the department approached dairy purchases for food-insecure families in 2020. These initiatives will help farmers during difficult times, and they happened because NMPF worked closely with USDA and Congress to help dairy farmers better manage their risks and serve their communities.

That doesn’t mean our work is over – especially on the pandemic market program. The $350 million in reimbursements is a partial balm that begins to redress policies that created unintended harm. But it isn’t a fair deal for all dairy farmers. NMPF is committed to lead efforts for fairness on behalf of our members.

Some background: USDA’s new program attempts to rectify two policy actions that left many in dairy on the wrong end of unplanned consequences. The immediate trigger was government food-box program purchases that were heavily weighted toward cheese. That over-emphasis sent Class III cheese prices to all-time highs and caused unusual and uneven impacts on milk checks, most commonly noticed via the record negative Producer Price Differentials (PPDs) seen during the pandemic.

The other culprit was an attempted good-faith policy change that inadvertently became a ticking time bomb, exploded by those same milk-price gyrations. A change to the Class I mover formula, which sets the price of Class I fluid milk, in the 2018 farm bill was originally proposed as a revenue-neutral adjustment designed to encourage increased fluid milk sales without hurting farmers. It turned out to be anything but that. Last year’s unprecedented discrepancies between Class III and Class IV prices, which are used to calculate the mover, pushed Class I skim milk prices dramatically lower than they would have been under the previous formula, leaving dairy farmers with roughly $750 million in losses.

At NMPF, we repeatedly urged the government to make more balanced purchases last year because we feared that unbalanced dairy-buying would wreak havoc on markets, as it did. Subsequently, when the effects of the new Class I mover formula became clear, we voiced support for an emergency Federal Milk Marketing Order hearing focused specifically on addressing the problem. We have held back on a formal hearing request, choosing instead to work with USDA toward creative solutions to more quickly assist producers, such as the new pandemic program. With USDA’s announcement – a milestone in the government’s response to the pandemic’s toll on dairy – it’s time to look at where we are, and where we need to go.

We are grateful that the department found a way to provide some relief, and that many members of Congress worked with us to advocate vocally for dairy farmers.

And while the program will help many producers, its lack of fairness is a major concern for NMPF and many of its members. The payment is calculated based on only 5 million pounds of milk per farm during the period of June-December 2020. That level is well below the production of thousands of dairy farms, meaning many family dairy farmers will only receive a portion of the losses they incurred. Losses were felt by producers of all sizes and in all regions: It was a disaster in the truest sense of the word. And like most other disaster programs, this one shouldn’t be subject to such arbitrary low limits on assistance. We are already working with allies in Congress to further supplement USDA’s already announced funding.

Meanwhile, we still need to address the risk imbalance in the current Class I mover formula that was exposed by the pandemic. The proposed adjustment to the mover NMPF developed last spring was designed to account for past losses and to restore needed balance for farmers going forward. The COVID-19 pandemic is (we hope) a once-in-a-lifetime occurrence. But as we can now see, a large spread between Class III and IV milk prices is not, making a Class I mover fix essential. Along with more fully recouping last year’s losses, we look forward to advancing positive solutions to this and other federal-order issues.

NMPF applauds USDA’s and Congress’s many crucial efforts for dairy. But fair is fair. As the advocate for U.S. dairy farmers, we’re leading the fight for fairness. Our efforts, along with those from our member-allies across the dairy farmer community, have already yielded a lot. And they’re far from over.



High Hopes for Lowly Pond Scum

Pond scum generally isn't looked upon kindly. But the microalgae that make up these floating green mats of slime could get newfound respect as renewable sources of fuel, specialty chemicals, dietary supplements and other valued products.

The potential of pond scum has also spilled over into agriculture. In August, a team of University of Minnesota (UMN) and Agricultural Research Service (ARS) scientists published findings that inoculating crop soils with microalgae known as cyanobacteria can offer several benefits. These include naturally fertilizing the soil, replenishing its store of organic matter and binding soil particles together so that they're less prone to erosion.

Adriana Alvarez, with UMN's Department of Bioproducts and Biosystems Engineering, led the study together with UMN professor Robert Gardner (deceased) and ARS soil scientists Sharon Weyers and Jane Johnson—both at the agency's Soil Management Research Unit in Morris, Minnesota. The collaboration is part of a shared interest: finding sustainable ways agriculture can meet the food, fiber, feed and fuel needs of a growing world population forecasted to exceed 9 billion by 2050.

For the study, the team chose to use a nitrogen-fixing cyanobacterium known as Anabaena cylindrica UTEX strain 1611. The researchers applied it as a dark green slurry to pots containing Mollisol, a type of organically rich clay loam soil common to grassland areas of the U.S. Upper Midwest.

Previous research by other groups had focused on the use of cyanobacteria and other photosynthetic microalgae to fertilize rice crops and revitalize degraded soils in arid and semi-arid regions of the world. But less research had been done examining the effects of the microalgae's use on nutrient-rich arable soils with high organic content like Mollisol, the team noted in a paper published in August in the online issue of the Journal of Applied Phycology.

To learn more, the researchers divided their study into three separate laboratory experiments. The first examined the effects of using the cyanobacteria on soil structure and nutrient dynamics, the second on soil loss and nutrient levels in runoff and leaching water following simulated rainfall events, and the third on mineralization, in which "biomass" of the cyanobacteria release plant-nourishing forms of nitrogen and phosphorus as they die and decay in soil.

Among the results, the researchers observed:
    Soils inoculated with cyanobacteria had more soluble nitrogen and phosphorus than untreated control soils—a build-up that occurred gradually rather than suddenly. The latter raises the prospects of a biobased, slow-release fertilizer, the researchers noted.
    Those same soils also had more soluble organic carbon, a form known to stimulate the growth and activity of other beneficial soil microorganisms that promote plant health and productivity.
    Soils contain clumps of particles called aggregates. Cyanobacteria-inoculated soils had more large aggregates that held together better in water, a feature that can contribute to improved soil structure and reduced likelihood of erosion by wind or rain.

Although the results affirm the findings of prior studies, the researchers cautioned more work has yet to be done across different agricultural systems and geographic areas to fully understand the value, safety and limitations of using microalgae.

"More research is needed with different strains, different crops, different soils and climates," Alvarez said. The economic feasibility of scaling up microalgae production and harvest for products that farmers can use—and in what forms—also has to be investigated. However, new approaches like this will be critical to meeting the agricultural challenges of tomorrow, Alvarez added—namely, "protecting and preserving the soil resource and value of soil as a central piece in our food, water and energy production for the next decades."