Monday November 15 Ag News

 NEBRASKA CROP PROGRESS AND CONDITION
 
For the week ending November 14, 2021, there were 5.5 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 8% very short, 27% short, 64% adequate, and 1% surplus. Subsoil moisture supplies rated 11% very short, 36% short, 52% adequate, and 1% surplus.
 
Field Crops Report:
Corn harvested was 90%, behind 96% last year, but near 88% for the five-year average.
 
Winter wheat condition rated 2% very poor, 10% poor, 28% fair, 50% good, and 10% excellent. Winter wheat emerged was 98%, near 95% last year and 97% average.  
 
Sorghum harvested was 91%, behind 97% last year, but near 89% average.
 
Pasture and Range Report:
Pasture and range conditions rated 12% very poor, 18% poor, 54% fair, 14% good, and 2% excellent.



IOWA CROP HARVEST PROGRESS REPORT

Variable  precipitation  slowed  harvest  activities  in  parts  of  Iowa,  allowing  farmers  4.1  days  suitable  for fieldwork  during  the  week  ending  November  14,  2021,  according  to  the  USDA,  National  Agricultural Statistics Service.  Field activities included harvesting, baling corn stalks, applying fertilizer and anhydrous, and fall tillage.
 
Topsoil moisture levels rated 1 percent very short, 10 percent short, 81 percent adequate and 8 percent surplus. Subsoil moisture levels rated 6 percent very short, 25 percent short, 66 percent adequate and 3 percent surplus. Precipitation this week helped improve soil moisture levels slightly.
 
Ninety-one  percent  of  Iowa’s corn  for  grain  has  been  harvested,  4  days  ahead  of  the  five-year  average.  Moisture content of field corn being harvested for grain was 17 percent.  Farmers in south central Iowa have over 20 percent of their corn for grain yet to harvest.
 
Iowa’s soybean crop harvest is virtually complete at 97 percent.     
 
No issues with livestock were reported.  Some cattle have been put out on corn stalks.



USDA: Less Than 10% of Corn, Soybeans Left to Harvest

Weather permitting, U.S. farmers could just about have this year's row-crop harvest wrapped up by Thanksgiving. Just under 10% of both the corn and soybean crops was left to harvest as Sunday, Nov. 14, USDA NASS said in its weekly Crop Progress report on Monday. Winter wheat planting was also within just 6 percentage points of completion.

The nation's corn harvest progressed 7 percentage points last week to reach 91% complete as of Sunday, NASS estimated. That is 3 percentage points behind last year's 94% but 5 percentage points ahead of the five-year average of 86%.

Soybean harvest moved ahead 5 percentage points last week to reach 92% complete as of Sunday. That is 3 percentage points behind 95% at the same time last year and 1 percentage point behind the five-year average of 93%.

Winter wheat planting inched ahead another 3 percentage points to reach 94% complete, 2 percentage points behind last year's pace but equal to the five-year average. Winter wheat emerged was estimated at 81%, 2 percentage points behind the five-year average of 83%. Winter wheat condition improved 1 percentage point last week to 46% good to excellent as of Sunday, equal to last year's rating at the same time.

Sorghum harvested was 89%, 2 percentage points ahead of average.

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Northeast Community College’s AgCeptional Women’s Conference set for Nov. 19

Registration is currently underway for the 13th annual Northeast Community College AgCeptional Women’s Conference – a day-long event to be held on Fri., Nov. 19, in the Lifelong Learning Center on the Northeast campus in Norfolk. The conference theme this year is “Seasons."

The AgCeptional Women’s Conference is northeast Nebraska’s premier event for women in agriculture, attracting over 400 women who come together for a full day of networking, professional development and personal growth opportunities. The conference sells out each year.

The opening session will feature a keynote speaker who understands the difficulties many people who work in farming face. Erica McBeth was raised on a farm in southwestern Kentucky where she struggled with the “dirty little family secret of depression.” Her light-hearted presentation addresses mental health and depression in the heartland and how to help those who are struggling.

Dr. Angela Baysinger, animal welfare lead for North America for Merck Animal Health, will speak during the closing session. Her message will pertain to serving as agricultural advocates in addressing animal welfare with consumers.

The conference will also feature over 20 presenters speaking on a number of topics, including succession planning, opportunities in livestock production, economic opportunities for value-added sorghum in Nebraska, the meatless meat debate, agriculture related tax issues, skin cancer prevention, and reasons for the seasons, among others.

“The COVID-19 pandemic has really affected the agriculture industry as a whole, so we are really excited to have a day dedicated to the women in agriculture who have been working tirelessly, never taking a day off, during the last year and a half,” said Karmen Hake, conference administrative assistant. “Our conference recognizes the important role women play in agriculture and we take pride in acknowledging them with this day.”

A tribute to the 2021 AgCeptional Woman of the Year will also be a highlight of the conference.

The registration fee for the 2021 AgCeptional Women’s Conference is $45, which includes breakfast, lunch and an afternoon snack.

“We are able to keep the cost of attending the conference affordable thanks to the support of the many sponsors of our event.” Hake said.

To register or learn more about the conference, go online to northeast.edu/events/agceptional.



Central Valley Ag Delivers Value to Member-Owners in the Form of $16 Million of Equity Payments

Central Valley Ag (CVA) continues to give back to member-owners, demonstrating the cooperative spirit. Recently, CVA’s Board of Directors approved the distribution of year-earned and age-based equity and retirement payments to its member-owners totaling almost 16 million dollars.

A payment of 9.5 million dollars is being made to member-owners based on their business with the cooperative in 2007 and 2008. Additionally, approximately 6.5 million dollars of retirements and age-based equity is being distributed to members that were age 65 or older as of December 31, 2020.
 
“I am proud of CVA’s performance, and our ability to return equity to our patrons,” said Carl Dickinson, CEO of Central Valley Ag. “It is exciting that your cooperative is in a position to not only add value through the products and services we provide, but to also return cash to the membership.”
 
Many people don’t fully understand or appreciate the cooperative structure according to Brandi Miller, CEO of the Kansas Co-op Council. When a co-op is profitable, dollars are returned back to owners in two ways, the first is through cash patronage. This is a direct return back to producers based on the amount of business they have done with the co-op.  “Those dollars stay local, to be reinvested back into the community,” said Miller.
 
In addition to cash patronage, the co-op has earnings that are earmarked for later distributions. In the short-term, these equity dollars are an investment by members in their co-op and can be used by the co-op to make capital improvements, which further grow the business or might make the co-op more efficient.  “In turn, the additional efficiencies generate more profits that go back to the producer,” said Miller. “It allows producers to really benefit from supporting their own business, and the economies of scale allow producers access to resources that they may not have on their own.”
 
“We truly appreciate the business of our member-owners and are excited to share with them the success of the cooperative,” said Dickinson.



Drago Open House & Michael Wegener Customer Appreciation Tuesday November 30th
Starting at 4pm with a Drago presentation from 7-8
At Michael Wegener Implement in Cornlea



UNL's Howell named 2021 ASABE fellow

Terry A. Howell, executive director of the Food Processing Center at the University of Nebraska-Lincoln, is being honored for his research and leadership contributions in agri-food industry and academia and for his committed leadership within ASABE.

At the Food Processing Center, Howell leads a multi-disciplinary team of food scientists and engineers providing consulting, laboratory and pilot plant testing, and training in the food industry. His role is pivotal in leveraging the people, equipment, and facility resources to improve the impact of Nebraska’s investment in the Food Processing Center on the food and agriculture industry in the state, region, and beyond. He also explores ways to respond to key needs in the food industry. Prior to joining the University of Nebraska, Howell was a senior manager in product development at McKee Foods and supervised the launch of more than 300 new products.

Howell is a longtime engaged ASABE member and served as the Society President in 2014. During his tenure he led the Board of Trustees to execute strategic priorities for the Society by strengthening partnerships with domestic and global partners, particularly in China, India, Ethiopia, South Africa, and Canada. Under his presidency, he commissioned a review of technical publications to enhance their profile and oversaw the Society’s lead status during DiscoverE’s Engineer’s Week in 2015.

Howell is a coauthor of Math Concepts for Food Engineers, now in its second edition. He has also authored or coauthored two book chapters and ten refereed publications and presented at numerous stakeholder, conference, and invited sessions. In 2020, Howell and a diverse team were honored with the UNL Institute of Agriculture and Natural Resources Omtvedt Team Award for Innovation related to the production of 200,000 gallons of hand sanitizer to serve Nebraskans during the COVID-19 pandemic.

A 26-year member of ASABE, Howell has served on the Society Board of Trustees, as a Trustee as well as Society President, and as a member of the Society finance and nominating committees. As chair of EOPD-414, the Professional Licensure Committee, Howell provided support to the task force that organized and completed the Supplied Reference Handbook, helped with the transition of the professional engineer exam from paper and pencil to computer-based, and is leading the current PAKS study. Howell is also a 25-year member of the Institute of Food Technologists.



USDA NASS TO COLLECT 2021 CROP PRODUCTION AND STOCKS DATA
 
As  the  2021  growing  season  comes  to  an  end,  the  U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will contact producers nationwide  to  gather  final  year-end  crop  production  numbers  and  the  amount  of  grain  and  oilseeds stored on their farms. At the same time, NASS will survey grain facility operators to determine year-end off-farm grain and oilseed stocks.
 
“These surveys are the largest and most important year-end surveys conducted by NASS,” explained NASS’s Northern Plains Director Nicholas Streff. “They are the basis for the official USDA estimates of production  and  harvested  acres  of  all  major  agricultural  commodities  in  the  United  States  as well as grain and oilseed supplies. Data from the survey will benefit farmers and processors by providing timely and accurate information to help them make crucial year-end business decisions and begin planning for the next growing and marketing season.”   
 
“Responses to the survey will be used in calculating county-level yields which have a direct impact on farmers  around  the  State.  USDA’s Farm Service Agency may use  the  data  in  administering  producer programs  and  in  determining  disaster  assistance  program  calculations,”  said  Streff.  “NASS  cannot publish  a  county  yield  unless  it  receives  enough  reports  from  producers  in  that  county  to  make  a statistically defensible estimate.  So, it is very important that producers respond to this survey.  In 2020, NASS  was  unable  to  publish  several  large  producing  counties  due  to  an  insufficient  number  of responses.”
 
“As  required  by  Federal  law,  all  responses  are  completely  confidential,”  Streff continued.  “We
safeguard  the  privacy  of  all  respondents,  ensuring  that  no  individual  operation  or  producer  can  be identified. Individual responses are also exempt from the Freedom of Information Act.”
 
Survey results will be published in several reports, including the Crop Production Annual Summary and the  quarterly  Grain  Stocks  report,  both  to  be  released  on  January  12.  These  and  all  NASS  reports  are available online at www.nass.usda.gov. For more information call the NASS Nebraska Field Office  at 800-582-6443.



Reynolds Extends Harvest Proclamation

Iowa Gov. Kim Reynolds signed an extension to the proclamation relating to the weight limits and transportation of grain.  The proclamation is effective immediately and continues through Nov. 30.

The proclamation allows vehicles transporting corn, soybeans, hay, straw, silage and stover to be overweight (not exceeding 90,000 pounds gross weight) without a permit for the duration of this proclamation.

This proclamation applies to loads transported on all highways within Iowa (excluding the interstate system) and those which do not exceed a maximum of 90,000 pounds gross weight, do not exceed the maximum axle weight limit determined under the non-primary highway maximum gross weight table in Iowa Code § 321.463 (6) (b), by more than 12.5 percent, do not exceed the legal maximum axle weight limit of 20,000 pounds, and comply with posted limits on roads and bridges.



Sow Summit Slated for Dec. 8 in Ames

The Iowa Pork Industry Center at Iowa State University is putting the finishing touches on its first IPIC Sow Summit. Created for producers who face ongoing challenges, this one-day conference offers producers the opportunity to hear from swine industry experts on practical solutions to those challenges.

Stacie Matchan, extension program specialist with the Iowa Pork Industry Center, said organizers are excited to share presentations and panel discussions at this new event, set for Dec. 8 in the Scheman Building at the Iowa State Center in Ames.

“Our committee included panel discussions so producers can ask questions directly of those involved with sow farms," she said. "The panel members will discuss improving survivability on the sow farm and strategies to be an effective sow manager.”

As part of the morning plenary session, Mark Schwartz, director of production systems for Schwartz Farms, will talk about the challenges facing the industry in improving efficiency in the sow herd.

Kara Stewart, of Purdue University, will cover how to manage light-weight pigs. Other speakers will share information on sow lameness, pelvic organ prolapses, individual sow care and managing the estrous cycle.

Attendee fee is $65 and no charge for students by Nov. 22. After that date, both fees increase by $15, with regular attendees at $80 and students at $15. See more agenda information and register now on the program website https://ipicsowsummit.org/.



Growers Frustrated EPA Opted Against Best Science in BEs

“The best available science and data.” It’s a phrase that carries heavy weight—or at least it should, as “the best available science and data” is the standard by which a regulatory agency is charged with conducting Endangered Species Act decisions. It is also the standard on which the fate of farmers across the country and their continued ability to use vital crop protection tools hinges.

Grower groups are expressing frustration that EPA recently did not use “the best available science and data,” as is required by law, in its endangered species biological evaluations (BE) for glyphosate, atrazine, and simazine released November 12. As a result, EPA’s final BEs for these chemistries vastly inflate the number of species and habitats found likely to be adversely affected.

The American Soybean Association and American Farm Bureau Federation have sought to provide the agency with better, real-world data sources, including in comments on the draft BEs—comments that EPA opted not to incorporate into the final BE. For example:

• The final BE for glyphosate also continues to assume soybean growers use 3.75 lbs./acre of glyphosate per application, whereas market research data and USDA survey data show the number is 1.00 lb./acre – nearly four times less than the BE assumes.

• The final BE for glyphosate also assumes growers reapply chemistry a mere seven days after an initial application. This extraordinarily unrealistic assumption for any producer increases model exposure risks for species.

Growers provided these and other real-world examples and data sources to EPA in public comments, which EPA chose not to incorporate into its final BE.

Kevin Scott, soybean farmer from South Dakota and president of the American Soybean Association, expressed frustration with EPA failing to use better data, saying, “The law is clear EPA must use the ‘best scientific and commercial data available’ for its endangered species assessments, but the agency has indicated it has no intent of doing so. What is more frustrating is that growers shared with EPA better and credible data, which it chose to ignore. These unrealistic findings will only fuel public distrust and risk grower access to glyphosate and other essential tools.”

American Farm Bureau Federation President Zippy Duvall said, “We are disappointed that the Environmental Protection Agency was presented with real-world evidence of limited pesticide use but failed to use the most accurate data in its biological evaluations. By overestimating the use of these crop protection tools, the EPA also overestimated the impact on species.

“Herbicides are vital tools in climate-smart farming because they enable farmers to use minimum tillage practices and fewer resources to raise their crops. EPA must take a well-rounded approach to its biological evaluations and use best available data when deciding on rules that will affect how farmers grow healthy crops,” Duvall commented.

By EPA making such unrealistic findings, the agency must now formally consult with Fish & Wildlife Service and the National Marine Fisheries Service on hundreds of additional species, which would have been unnecessary had EPA used the best available data. This extra burden will likely further strain resource-strapped agencies, expand regulatory timeframes, and result in additional product restrictions that may do nothing to protect species.



OSHA, Smithfield Packaged Meats Corp. sign settlement agreement

Smithfield Packaged Meats Corp. – the country’s largest pork processor – has agreed to assemble a team of company and third-party experts to develop an infectious disease preparedness plan that the company will implement at all of its processing facilities nationwide.

In a settlement agreement with the U.S. Department of Labor, Smithfield Packaged Meats Corp. has committed to changing its health procedures and training relating to infectious diseases. The action follows a March 2020 Occupational Safety and Health Administration inspection that led OSHA to cite the company under the general duty clause for failing to protect workers from coronavirus hazards at its Sioux Falls facility. As part of the agreement, Smithfield will pay the assessed penalty of $13,494.

In spring 2020, the company closed its Sioux Falls plant for 25 days in an effort to contain a COVID-19 outbreak. By June 16, 2020, 1,294 Smithfield workers had tested positive for COVID-19 and four died.

“The terms of this settlement are intended to ensure that Smithfield employees receive the training and protective measures necessary to protect them from exposure to the infectious diseases at their facilities,” said OSHA’s Regional Administrator Jennifer Rous in Denver. “What happened at this facility was tragic and we must ensure that all steps in the agreement are followed to prevent a mass outbreak from happening again.”

Under the terms of the agreement, Smithfield will continue to use its current COVID-19 Preparedness and Response Plan to reduce employees’ exposure to the coronavirus while working with third-party experts to assess plants’ operating procedures and develop the infectious disease preparedness plan. Smithfield must evaluate work areas and other areas where employees congregate to minimize employees’ potential exposure to infectious diseases.

The team of third-party experts and company representatives will also:
-    Review Smithfield’s existing programs and procedures.
-    Evaluate plant administrative and engineering controls.
-    Identify personal protective equipment and respiratory protection needs.
-    Address medical management functions through the facility’s onsite clinic, and identify issues associated with continuity of operations.
-    Train and implement program requirements in languages and at literacy levels that the workforce understands. Any written materials provided must also be in languages employees understand.

Following development of its infectious disease preparedness plan, Smithfield agreed to review the plan and revise it as necessary to address potential new infectious diseases and guidance from federal, state and local public health authorities, as well as review annual union feedback on the plan and its procedures.



CONCERNS RAISED OVER VACCINE MANDATE’S EFFECT ON USDA MEAT INSPECTORS

In a letter sent Wednesday to Agriculture Secretary Vilsack, the National Pork Producers Council, along with the American Farm Bureau Federation, the National Cattlemen’s Beef Association and the National Turkey Federation, raised concerns about the effects on USDA Food Safety and Inspection Service (FSIS) and other USDA personnel of the Biden administration’s COVID-19 vaccine mandate.

Implementation of the mandate, the organizations pointed out, may lead to a loss of some FSIS meat inspectors, resulting in packing plant disruptions and closures. They noted that the meatpacking industry already has limited harvest capacity because of increasing demand for meat and poultry, a severe labor shortage in rural communities and pandemic-related supply chain challenges.

The agricultural groups asked for “clarification on how USDA will mitigate potential disruptions in staffing with the implementation of this [vaccine] directive.” (Click here to read the letter.)

NPPC WEIGHS IN ON PROPOSED RULE FOR LABELING CELL-CULTURED PROTEIN
In comments recently submitted to USDA’s Food Safety and Inspection Service (FSIS), NPPC asked the agency to ensure that the name or statement of identify of foods comprised of or containing cultured animal protein cells is clear and transparent as to the source of the food and how it was created so consumers can make informed choices.

FSIS is proposing regulations for labeling meat and poultry products comprised of or containing cultured animal cells. The agency should “avoid terms that either inadequately describe the nature of the product or those, such as ’cell based,’ that are so broad as to include actual meat or poultry products in their descriptions,” said NPPC, adding that “cell-cultured products designed to mimic real meat must face the same stringent regulatory requirements as livestock agriculture, including truthful labeling standards.”

The organization pointed out that federal law prohibits labeling that is misleading and offering food for sale under the name of another food. Cell-cultured foods, NPPC said, “should be named or described in a way that informs consumers about how the animal cells were produced.”



USMEF Conference Concludes with Focus on Korea, Officer Elections

The U.S. Meat Export Federation (USMEF) Strategic Planning Conference and Board of Directors Meeting, held Nov. 10-12 in Carlsbad, Calif., wrapped up with a session focused on U.S. red meat's remarkable success in South Korea and the election of new USMEF officers.

Mark Swanson, chief executive officer of Colorado-based Birko Corporation, is the new USMEF chairman, succeeding Pat Binger of Cargill Protein North America. Since joining USMEF in 2008, Swanson said Birko has benefited significantly from the federation's expertise and from the contributions exports make to the growth and profitability of the U.S. red meat industry.

"The reason Birko became involved with the U.S. Meat Export Federation is that as a critical supplier to the industry, we know that exports are absolutely vital to the profitability of our customers," he said. "Birko's support for our customers is what drove us to assist USMEF in its quest to grow meat exports.

"Probably the greatest aspect of USMEF that has helped Birko, and many of the organizations that we work with, is the technical knowledge and the technical skill of the USMEF staff – which is second to none," Swanson added. "This is what propels us to outpace the competition, because we're simply better at understanding the markets."

Swanson heads an officer team reflecting the wide range of USMEF membership sectors. Dean Meyer, a corn, soybean and livestock producer from Rock Rapids, Iowa, is the new USMEF chair-elect, and Edgerton, Minn., pork producer Randy Spronk will serve as vice chair. The newest USMEF officer is Steve Hanson, a rancher from Elsie, Neb.

Spotlight on Korea: 30 years of growth, with the best yet to come
The conference marked the 45th anniversary of the founding of USMEF and 30 years since it established an office in Seoul, South Korea. Jihae Yang has guided the Korea operation for much of that time, starting with USMEF in 1998 and becoming Korea director in 2006. She gave USMEF members a recap of some of the factors leading to U.S. red meat's tremendous growth in Korea, which will be a $2 billion destination for U.S. beef exports for the first time this year. High-value chilled exports to Korea are achieving explosive growth, with chilled beef export value up 50% year-over-year and chilled pork volume nearly tripling from a year ago.

Yang explained that booming retail demand has been the main growth driver in Korea, with consumers seeking more high-quality protein options to prepare at home. She emphasized that the U.S. red meat industry has capitalized on this trend in a big way, but not just in supermarkets and other traditional retail outlets. Before COVID-19, Korea was already a pacesetter in U.S. meat sales through e-commerce platforms and home delivery, and the popularity of these services has grown tremendously during the pandemic.

Koreans still enjoy dining out, and Yang noted that the recent easing of COVID-related restrictions on restaurants and cafes will help foodservice demand rebound. However, she expects dine-in traffic to remain below pre-COVID levels for some time as consumers continue to explore a widening range of convenient, high-quality, in-home meal options.

Panelists provide expertise on logistics challenges, regulatory burdens
Thursday's agenda included a panel discussion focused on the obstacles U.S. exporters face when moving chilled and frozen product through West Coast ports. The session featured insights from Port of Long Beach Chief Operating Officer Noel Hacegaba and veteran logistics journalist Bill Mongelluzzo, trans-Pacific senior editor at Journal of Commerce.

Hacegaba explained the steps the Port of Long Beach has taken to improve the flow of the surging volume of containers carrying imported cargo, which face several bottlenecks between U.S. point of entry and their final destination. This includes expansion of port operating hours and the recent imposition of dwell fees assessed on inbound containers that are not picked and removed promptly.

"As you can imagine, there is a lot of outcry about what are we doing," Hacegaba said. "Why are we assessing additional charges at a time when they need relief? Well you can't let the terminal, or even the ships at anchor, serve as warehouses – and that's effectively what they're doing. We need to get those boxes out, and since we made that announcement, those boxes that this surcharge targets are down 20% at the Port of Long Beach, and this shows there is still room for improvement."

Mongelluzzo noted that media outlets too often describe current shipping difficulties as "gridlock," which misrepresents the situation and draws attention only to the number of vessels waiting at anchor.

"Gridlock means nothing is moving, when in fact the Port of Long Beach and other ports are moving record or near-record volumes of cargo every month," he said. "This has gone on for 16 consecutive months beginning in July 2020. The big issue right now are the warehouses – not just in Southern California where there's close to 2 billion square feet of industrial space. You name the gateway – New York, New Jersey, Norfolk, Savannah – and these warehouses are totally and completely packed."

Hacegaba and Mongelluzzo both cautioned that it is difficult to estimate when U.S. exporters will see significant improvement in the shipping industry's ability to move their cargo to overseas destinations. Projections range from early 2022, when the Lunar New Year holidays tend to slow the volume of imports arriving at U.S. ports, to late 2022 or early 2023. The uncertainty is a growing concern for international customers who rely on prompt delivery of U.S. beef and pork.

"While global demand for U.S. red meat is surging and exports are on a record pace this year, the severity of these transportation challenges can't be overstated," said USMEF President and CEO Dan Halstrom. "It's a huge concern for our members throughout the supply chain, and the panelists gave great insights on the complex and difficult situation we face on the West Coast."

To help voice these concerns, USMEF members approved a resolution pledging to work with meat and livestock industry partners to seek solutions to current logistical challenges across the supply chain. USMEF also supports ongoing efforts between industry and the U.S. government to pursue long-term improvements to the transportation infrastructure that will help U.S. agriculture remain a reliable supplier to its global customer base.

The conference also included a panel discussion examining regulatory challenges for American and European agriculture, featuring Christine McCracken of RaboResearch Food and Agribusiness and Rupert Claxton of global consulting firm Gira. McCracken reviewed broad factors contributing to demand – including global income growth, an expanding middle class and increased demand for high-quality protein – and the major factors constraining supply. She explained that increased regulation, supply chain disruptions and geopolitical risks are serious supply-side threats to trade and to the U.S. industry’s ability to capitalize on demand opportunities.

Citing California as an example, McCracken explained that the country’s leading producer of agricultural products is the most heavily regulated state in American agriculture – with water, labor and animal welfare regulations topping the list. She detailed the potential impact of Proposition 12, which expands housing requirements for breeding pigs, laying hens and veal calves and affects all fresh pork sold in California, regardless of origin. Final rules are not yet available, which has limited the industry's ability to prepare for compliance. McCracken expects that after the initial disruption, pork prices will be driven 5% to 10% higher in California and pork consumption will decline slightly, with lower-income consumers being the most impacted.

Claxton reviewed what he termed a “stack” of issues challenging the European meat industry. He stated that COVID has had a more pronounced impact in Europe than in the U.S., and underscored numerous challenges linked to Brexit, including energy and labor shortages.

The EU’s Farm to Fork Strategy – a component of the European Green Deal – includes aggressive 10-year targets that will add to agricultural production costs. Claxton believes European pork production has peaked and that implementation of the Green Deal could accelerate its decline – possibly dropping 10% over the next 10 years.

In addition to the resolution on logistics challenges, USMEF members also approved a resolution urging USDA support for the U.S. Swine Health Improvement Plan pilot project. With African swine fever (ASF) and other foreign animal diseases being a growing concern for the U.S. red meat industry, the resolution highlights the urgent need for funding support for ASF prevention and preparatory efforts.

The Strategic Planning Conference also included meetings of USMEF's standing committees – the Pork and Allied Industries Committee, Beef and Allied Industries Committee, Exporter Committee and Feed Grain and Oilseed Caucus. Committee members received updates from USMEF's international staff on market conditions and promotional activities in a wide range of regions, including Korea, Central and South America, the Caribbean and Europe.

USMEF honors Neil Dierks, Ohio Corn Checkoff
USMEF presented two awards at the conference. National Pork Producers Council CEO Neil Dierks received USMEF's Distinguished Service Award for his outstanding efforts to improve international market access for U.S. red meat. More details on this award are available online. USMEF also recognized the Ohio Corn Checkoff as the latest member of its Million Dollar Club.



U.S. Dairy Highlights Supply Chain Challenges at White House Roundtable

National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) Executive Vice President for Policy Jaime Castaneda joined members of the Biden-Harris Administration’s Supply Chain Disruptions Task Force to discuss the challenges facing the export industry regarding current supply chain disruptions.

The virtual roundtable held today featured a handful of groups in the agricultural export industry. NMPF and USDEC are pleased that the supply chain issues adversely affecting U.S. dairy exports are gaining broader attention.

“These issues warrant the focus of the entire federal government in order to address the negative economic effects on both businesses and consumers from these challenges,” said Castaneda. “This discussion was a first positive step which we hope will continue to drive high-level attention to the obstacles affecting U.S. supply chains and exports.”

Since the onset of COVID in early 2020, supply chains have been severely imbalanced, with significant consequences for many American industries. USDEC, NMPF, and other agriculture organizations and companies have been leading the policy push for supply chain improvements to mitigate congestion limiting U.S. exports and in particular ensuring that containers leave U.S. ports full of agricultural products.

During a Nov. 3 U.S. House Agriculture Committee hearing, Mike Durkin, President and CEO of Leprino Foods, noted that “this export crisis may well result in irreparable harm to American agriculture as customers around the world are questioning the U.S. dairy industry’s reliability as a supplier.”

NMPF and USDEC expressed appreciation for the opportunity to share with the White House Supply Chain Disruptions Task Force how the Administration can help address the nation’s supply chain issues, and specifically, focus its attention on the challenges facing the U.S. dairy industry, shippers, and exporters.

The organizations have also urged the administration to convene a meeting with food and agriculture industry CEOs to discuss how the White House and Congress can take immediate action to implement additional measures, such as passing ocean shipping reform legislation, addressing critical transportation industry labor and shipping equipment shortages, and other steps that will help American agriculture producers reach their foreign markets effectively.



R-CALF USA: Too Early to Endorse Compromised 50/14 Bill

Last week R-CALF USA drafted three memoranda which were sent only to the offices of Senators Chuck Grassley (R-Iowa) and Jon Tester (D-Mont.) urging substantive modifications to the proposed compromise between the Grassley/Tester spot market protection bill (S.949) and the Cattle Market Transparency Act of 2021 (S.543) introduced by Senators Deb Fischer (R-Neb.) and Ron Wyden (D-Ore.).

The proposed compromise, the Cattle Market Price Discovery and Transparency Bill (compromise bill), rejects the national approach to improving price discovery required in S.949 and adopts the regional approach with varied minimums contained in S.543. The compromise bill further includes provisions for improving marketplace transparency, including the establishment of a contract library.

R-CALF USA’s three-part memoranda begins with expressing grave concerns regarding the adoption of a regional approach, with varying regional requirements, for increasing the volume of fed cattle required to be purchased by the largest beef packers in the negotiated cash and negotiated grid markets.

The second memorandum nevertheless offers four specific recommendations for modifying the compromise bill’s regional approach to ensure it would not only materially increase the volume of fed cattle transacted in the negotiated cash and negotiated grid markets; but also, alleviate the ongoing restrictions on timely market access that many independent cattle feeders have faced for several years.

The third memorandum offers five specific recommendations for improving the marketplace transparency provisions in the compromise bill by capturing more of the current cattle procurement methods currently in use by the largest beef packers.

R-CALF USA CEO Bill Bullard said it’s too early for cattle producers to endorse the compromise bill. “We likely have one shot and one shot only at this, so let’s get it right. We’ve given the Senate offices the information needed to draft a meaningful bill and will continue working with them to achieve one,” he said.

Bullard said his group’s three-part memoranda will be made public after the compromise bill is finalized.



Ranch Group Follows NCBA’s Lead in Calling for Suspension of Brazilian Imports

Today, R-CALF USA sent a letter to Agriculture Secretary Tom Vilsack stating it agreed with the National Cattlemen’s Beef Association’s (NCBA’s) November 12, 2021 call for the suspension of all imports of fresh beef from Brazil to the United States. R-CALF USA’s letter indicates it shares the concerns raised by the NCBA regarding Brazil’s repeated failures to provide timely notice regarding outbreaks of bovine spongiform encephalopathy (BSE or mad cow disease) in 2012, 2014, 2019, and more recently in 2021.

However, unlike the NCBA’s request for a suspension that only applies to fresh beef, R-CALF USA’s request is more expansive, seeking an immediate suspension of imports of all beef products, both fresh and pre-cooked, pending a United States investigation into Brazil’s food safety system and its veterinary diagnostic laboratory system.

The ranch group explains that the more expansive suspension is needed because beef-related heat processes are not capable of inactivating the BSE prion, and it is Brazil’s non-compliance with BSE reporting requirements that prompted the suspension request. R-CALF USA’s letter states “all imports of all beef potentially subject to BSE contamination must be suspended.”

The ranch group points out that Brazil’s trail of reporting violations reveals that government-led sanctions have not worked to change Brazil’s practices. It then suggests that Vilsack should help Congress pass the recently introduced mandatory country of origin labeling (MCOOL) for beef bill (S.2716), which it states will provide a market-based approach to enforcement that may be more effective in forcing Brazil into compliance.

Empowering consumers to choose if they wish to purchase products from countries such as Brazil that attempt to circumvent U.S. food safety expectations, or from countries that engage in the deforestation of the world’s rain forests will only be possible when S.2716 is enacted, the ranch group asserts.

The MCOOL bill will “empower consumers to exercise a market-based approach to ensuring that foreign beef is produced under the same high standards as required in the United States and expected by United States consumers,” the letter states.



GROWMARK Names Mark Orr as Next Chief Executive
 
GROWMARK, Inc. announced today that Mark Orr will become Chief Executive Officer of the North American agriculture and energy cooperative effective March 1, 2022. Orr will succeed Jim Spradlin, CEO since September 2014, who retires February 28, 2022.

“Mark brings a wealth of proven leadership experience to the chief executive role,” GROWMARK Chairman of the Board John Reifsteck said. “As we searched for the ideal candidate, the GROWMARK Board of Directors identified the most critical leadership attributes and experiences required to drive our enterprise business strategies for the long-term success of the GROWMARK/FS System. Mark demonstrates a collaborative approach to leadership along with a passion for innovation and growth that benefits our member-owners, all of our customers, and their end users.”

“I’m excited for the opportunity to lead one of the greatest organizations in agriculture and look forward to building upon the strategies already driving the GROWMARK System to unprecedented growth in recent years,” added Orr. “At the end of the day, it all comes down to serving our members with unsurpassed customer service and delivering value to our member-owners across North America.”

Orr currently serves as GROWMARK Vice President, Agronomy, a position he has held since 2014. He is a graduate of Illinois State University with a bachelor’s degree in Agri-Business. Orr’s extensive previous management experience includes service as a GROWMARK region vice president and as general manager of AgView FS and Piatt County Service Company. His career in the GROWMARK/FS System began in 1990.

Spradlin announced his retirement in June after serving seven years in the CEO role, and decades in a variety of roles throughout the GROWMARK/FS System. Orr will work alongside Spradlin through February to ensure a smooth and successful transition.

GROWMARK is an agricultural cooperative serving almost 400,000 customers across North America, providing agronomy, energy, facility engineering and construction, and logistics products and services, as well as grain marketing and risk management services. Headquartered in Bloomington, Illinois, GROWMARK owns the FS trademark, which is used by member cooperatives. GROWMARK also owns and operates SEEDWAY, the largest full-line seed company in the United States.