Monday November 29 Ag News

NEBRASKA CROP PROGRESS AND CONDITION
 
For the week ending November 28, 2021, there were 6.9 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 9% very short, 33% short, 58% adequate, and 0% surplus. Subsoil moisture supplies rated 15% very short, 34% short, 50% adequate, and 1% surplus.
 
Field Crops Report:
Winter wheat condition rated 2% very poor, 11% poor, 23% fair, 52% good, and 12% excellent.
 
Pasture and Range Report:
Pasture and range conditions rated 16% very poor, 20% poor, 46% fair, 15% good, and 3% excellent.
 
This is the last weekly Crop Progress and Condition report for the 2021 growing season. We
would like to extend our appreciation to the dedicated county FSA and extension staff who
supplied the necessary information for these reports. For December through March, we will issue
monthly reports. The first monthly report (for week ending January 2) will be issued January 3,
2022. Weekly reports will begin April 4th for the 2022 season.



IOWA CROP PROGRESS & CONDITION REPORT

Continued dry conditions allowed Iowa’s farmers 6.5 days suitable for fieldwork during the week ending November 28, 2021, according to the USDA, National Agricultural Statistics Service.  Field activities included harvesting corn for grain, baling corn stalks, applying fertilizer and anhydrous, and fall tillage.  Grain was also being hauled to elevators.  Some operators have put their machinery away for the winter.
 
Topsoil moisture levels rated 3 percent very short, 20 percent short, 74 percent adequate and 3 percent surplus. Subsoil moisture levels rated 7 percent very short, 29 percent short, 62 percent adequate and 2 percent surplus.   
 
Iowa’s corn  for  grain  harvest  is  virtually  complete,  at  98  percent,  5  days  ahead  of  the  five-year  average.  Moisture content of field corn being harvested for grain was 16 percent.  Only scattered fields remain to be harvested.
 
Livestock continued to do well with cattle out on corn stalks and reports of calves being weaned.



Winter Wheat Conditions Steady in Final Crop Progress Report of 2021

The nation's corn and soybean harvest wrapped up last week, and winter wheat conditions held steady, USDA NASS reported Monday in its final weekly Crop Progress report of 2021.

Winter wheat planting wrapped up last week, and 92% of the crop had emerged as of Sunday, Nov. 29, NASS estimated. That's equal to last year and 1 percentage point ahead of the five-year average of 91%.  Winter wheat condition was unchanged from the previous week at 44% good to excellent.

Sorghum harvested was 97%, 1 percentage point ahead of average.

The first weekly report for 2022 will be released on Monday, April 4, 2022.

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HUSKER STUDY LINKS CROP INSURANCE PREMIUM SUBSIDIES TO FEWER, LARGER FARMS

Recent research conducted by the University of Nebraska–Lincoln’s Department of Agricultural Economics indicates crop insurance premium subsidies offered by the federal government have contributed to fewer and larger farms.

The current taxpayer-subsidized crop insurance program in the United States represents a culmination of a series of legislative acts, beginning in 1980 with the Federal Crop Insurance Act, followed by the Federal Insurance Reform Act in 1994 and the Agricultural Risk Protection Act (ARPA) in 2000.

These acts were aimed at encouraging producer participation through increased premium subsidies and enhanced coverage options. Increased subsidization was effective in increasing participation, as more than 90% of corn acres were covered by some form of crop insurance by 2020.

But counties in Nebraska experienced farm number decreases of 20% to 40% following the rollout of ARPA, according to the research.

For 2021, premium subsidies in Nebraska for all crop insurance policies ranged from just over $36,000 in Hooker County to $10 million in Furnas County, with an average of just under $5 million. These subsidies can produce unintended consequences, according to Cory Walters, associate professor of agricultural economics.

“Some farmers know the system and can take advantage, using returns to beat up on their uninformed neighbor,” Walters said.

But the identification of these unintended consequences can be useful to policymakers in rethinking future crop insurance policy design.  

One unintended consequence is farm consolidation, whereby farms are bought out using rents acquired from subsidized insurance and consolidated into larger farms. A legislative rise in premium subsidies, as was the case through ARPA in 2000, raises expected returns to participation in crop insurance. To the extent that an increase in expected returns induces individual participating farmers to increase crop supply, they may collectively see their benefit from insurance offset by declining market revenue and non-participating farmers may incur losses, as well. That is because the increase in aggregate crop supply, induced by participation in subsidized insurance, results in declining market prices.

Walters said this study provides a strong theoretical link between crop insurance subsidization, market prices and output, and long-run market participation.

“How these factors interplay in the real world has not been addressed,” he said.

Along with Walters, the research was conducted by Taylor Kaus, a master’s student in agricultural economics, and Azzeddine Azzam, Roy Frederick Professor of Agricultural Economics.

A full summary of the findings is available in a recent Cornhusker Economics article published by the Department of Agricultural Economics at https://agecon.unl.edu/cornhusker-economics.

     

USDA Settles a Packers and Stockyards Case Against Columbus Sales Pavilion Inc. and Travis Bock

The U.S. Department of Agriculture (USDA) entered into a stipulation agreement with Columbus Sales Pavilion Inc. and Travis Bock (Columbus) of Columbus, Neb., on Nov. 9, 2021, for violations of the Packers and Stockyards (P&S) Act. Under the terms of the stipulation agreement, Columbus waived its rights to a hearing and paid a penalty of $3,300.

An investigation by USDA’s Agricultural Marketing Service (AMS) revealed Columbus failed to maintain its custodial account, resulting in custodial shortages of $113,474 on Feb. 1, 2021, and $289,369 on March 31, 2021.

A custodial account is an account designated for the shippers’ proceeds from the sale of livestock held in trust for sellers. Operating with custodial account shortages is a violation of the P&S Act and places livestock sellers at risk of not being paid timely or at all.

The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $29,270 per violation against any person after the notice and opportunity for hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and enter into a stipulation agreement to quickly resolve alleged violations.

The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.



TEST BEFORE FEEDING CORN STALK BALES
– Ben Beckman, NE Extension Educator
              
Corn stalk bales will provide much needed feed this winter for many producers.  If you’re one of them, be sure to feed them effectively.
 
Baled corn stalks are a great feed option to consider, especially with the current high price of hay.  However, before you feed those bales, find out what they have to offer nutritionally.  Sample and test your bales as soon as possible so when snow gets deep or other feeds run out you will already know how to best feed your corn stalk bales.
              
Begin by testing the bales for protein and energy.  You may be surprised at how variable the protein and energy content can be in corn stalk bales.  I’ve seen protein as low as 3 percent and as high as 7 percent.  Dry pregnant cows need 7 to 8 percent protein in their diet so high protein bales will need only a little extra protein to adequately care for the cows.  But those 3 percent bales will need quite a bit of supplement to keep cows in good condition.
              
Use a protein supplement that is nearly all natural and has sufficient rumen degradable protein.  Maintenance-level forage diets need degradable protein for the rumen microbes, but remember that urea and other non-protein nitrogen sources aren’t used as well.
              
Many bales have pretty good TDN (total digestible nutrients) levels, nearly 60 percent. Cows fed these bales should do very well up until calving with just corn stalk bales and adequate protein supplement.  However, stalks that were weathered before baling can be below 50 percent TDN.  Cows fed these lower quality bales will need some extra energy, too.
              
If your bales came from stressed stalks, like from drought or hail, also get a nitrate test to be sure they are safe.
         
Good testing of corn stalk bales can help make them a nutritious and safe feed.



Pasture, Rangeland, Forage Insurance Applications Due December 1 for 2022 Coverage
Jay Parsons, Farm and Ranch Management Specialist

As 2021 has illustrated, low precipitation or drought conditions regularly remind livestock producers dependent upon perennial grass production that one of their major risks is difficult to control. However, tools like the Pasture, Rangeland, Forage (PRF) insurance program, administered by the USDA Risk Management Agency (RMA), can help mitigate the financial impact of this risk on the producer’s bottom line. PRF is available for purchase from crop insurance agents with coverage available on a calendar year basis. The signup deadline for calendar year 2022 coverage is Dec. 1, 2021.  

PRF insurance is a group insurance policy based on grids 0.25 degrees longitude by 0.25 degrees latitude. It uses precipitation data from the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC), providing producers with the opportunity to insure 70% to 90% of the Expected Grid Index Precipitation across a series of two-month intervals dispersed throughout the calendar year. Premium subsidies range from 51% to 59%, depending upon the coverage level selected.  If precipitation falls below the insured coverage level, the producer receives an insurance indemnity payment for the productive value of the difference.  

In calendar year 2021, Nebraska producers insured a record 3.55 million acres with PRF insurance. The average number of acres covered per policy was 2,040, with an average producer premium per policy of $4,834, or $2.37 per acre. With actual index values yet to be determined for several coverage intervals, 79% of policies earning premiums in Nebraska have earned some indemnity payment. To date, the average indemnity per policy is $6,174, or $3.03 per acre. The producer loss ratio to date is 1.28, indicating for every $1 of producer premium, indemnity payments of $1.28 have accrued in 2021.

For the full calendar year of 2020, the producer loss ratio for the state was 2.88. The producer loss ratio was higher for the Panhandle than it was for the other regions of the state but, overall, the producer loss ratios across the state for 2020 was quite high, as one would expect in a relatively dry year. However, results can obviously vary year to year. For example, the producer loss ratios for Nebraska in 2018 and 2019 were 0.44 and 0.60, respectively.

With the Dec. 1 signup deadline date quickly approaching, producers interested in purchasing PRF for the 2022 calendar year should contact their crop insurance as soon as possible to begin the application process. For more information on PRF insurance visit: http://www.rma.usda.gov.



Free Ag Budget Calculator Trainings Scheduled

The University of Nebraska-Lincoln’s Center for Agricultural Profitability has scheduled a series of virtual training workshops for beginning and advanced users of the Agricultural Budget Calculator tool.

The Agricultural Budget Calculator (ABC) is a free online enterprise budgeting and decision-making tool that allows users to view university crop budgets and enter their own data to create customized enterprise reports that reflect how their farm resources are being allocated. It is designed to assist agricultural producers in determining their cost of production and projected cash and economic returns for various farm or ranch enterprises.

Training sessions will be led by Glennis McClure, extension educator and farm and ranch management analyst in the Department of Agricultural Economics. Courses include a program introduction that covers customizing crop budgets, a session on more advanced options like whole farm program features and sessions dedicated to question-and-answers about ABC.    

“It’s always important to estimate cost of production for our agricultural enterprises, but now with the volatile input and crop prices, it’s even more critical,” McClure said. “Knowing your estimated cost of production can assist you in making important management decisions.”

Each course will be offered multiple times before Feb. 8, via Zoom. They are free to attend, but registration is required at https://cap.unl.edu/abc/training.



SAVE THE DATE:  Emerging Issues Forum March 23-24, 2022

Join the Nebraska Ethanol Board in-person for the 16th Ethanol: Emerging Issues Forum on March 23 and 24, 2022 to explore cutting-edge innovations and tangible solutions being implemented by biofuels leaders, the agricultural sector, and political partners taking a clean-fuel approach to climate action and industry growth. They are covering a lot of exciting topics, including:
    Ethanol's role in environmental health & justice
    Farming CI accounting & sustainability
    Carbon Capture & Sequestration
    Innovative uses for ethanol and its co-products
    Retailer market growth and more!

The Forum will be held at the La Vista Conference Center just outside Omaha, Nebraska.  Details and a link to register will be made available soon. Otherwise visit ethanol.nebraska.gov for more information.  



Waiver from Trucking Federal Rule Extended

The National Pork Producers Council today thanked the Biden administration, Transportation Secretary Pete Buttigieg and Meera Joshi, deputy administrator of DOT’s Federal Motor Carrier Safety Administration for extending to Feb. 28, 2022, a waiver for commercial truckers from the federal Hours of Service regulation.

The HOS rule limits truckers to 11 hours of driving time and 14 consecutive hours of on-duty time in any 24-hour period and requires prescribed rest periods.

At the outset of the COVID-19 pandemic in March 2020 and prompted by NPPC’s efforts to ensure pork producers could continue transporting hogs, the FMCSA included livestock haulers in an initial emergency declaration that provided an exemption from the HOS regulation for commercial truckers hauling essential supplies, including livestock. The waiver subsequently was expanded to cover the delivery of livestock feed.

“We’re pleased the FMCSA recognized the challenges COVID still presents and the problems it has created, including supply chain issues, for the livestock industry and acted accordingly,” said NPPC President Jen Sorenson. “Extending the HOS waiver ensures that livestock truckers can get hogs to market safely and efficiently. Likewise, truckers hauling livestock feed can get those essential supplies to farms.”

In August, the FMCSA extended the waiver to Nov. 30. In that extension, the agency also requested that livestock haulers who use the waiver report that within five days of the end of each month on their FMCSA portal.

A provision in the infrastructure bill recently signed into law expanded the miles agricultural truckers can drive without the HOS restrictions. Divers hauling livestock already were exempt from the HOS rule for the first 150 air miles of their runs. Now they also will be exempt from HOS rules for the final 150 air miles from their final destination, providing additional flexibility to ensure drivers can safely complete their deliveries while protecting other drivers and ensuring the welfare of the animals in their care.



U.S. Agricultural Exports in Fiscal Year 2022 Forecast at Record $175.5 Billion; Imports at $165.0 Billion
USDA Economic Research Service

U.S. agricultural exports in fiscal year (FY) 2022 are projected at $175.5 billion, down $2.0 billion from the August forecast, but still a record if realized. This decrease is driven by reductions in oilseed and oilseed product exports that are partially offset by increases in livestock, poultry, dairy, cotton, and ethanol exports. The projection for soybean exports is down $3.9 billion to $28.4 billion due to lower prices and softening Chinese demand. Soybean meal exports are forecast down $800 million to $4.9 billion due to lower prices. Livestock, poultry, and dairy exports are forecast to increase by $1.9 billion to $38.7 billion, with gains across all major commodities except pork. Beef exports lead the increase with an $800-million upward revision, followed by poultry and poultry product exports, which are forecast up $700 million—both driven by higher prices. Cotton exports are forecast up $500 million to $7.3 billion based on higher unit values and volumes. Ethanol exports are forecast up $500 million to a record $2.9 billion on higher unit values. Grain and feed exports are revised down by $300 million to $41.5 billion, with corn, sorghum, and rice exports each down $100 million. The forecast for wheat exports is unchanged at $7.1 billion, as higher unit values are offset by lower volumes and greater competition. Horticultural product exports are unchanged from the August forecast at $37.7 billion.

Agricultural exports to China are forecast at $36.0 billion, a decrease of $3.0 billion from the August projection—but still a record—largely due to lower soybean unit values. China is expected to remain the largest U.S. agricultural market.

U.S. agricultural imports in FY 2022 are forecast at $165.0 billion—up $5.5 billion from the August forecast—largely driven by higher imports of horticultural and livestock products. Horticultural product imports are forecast up $2.0 billion, led by increases in distilled spirits and fresh fruits. Livestock product imports are projected to rise by $800 million on higher beef and pork imports.



Lock and Dam Renovation Funding Key to Global Competitiveness of U.S. Soy

To ensure continued and reliable delivery of U.S. soybean exports to customers around the world, the soybean checkoff plans to fund pre-engineering and design work to enhance and maintain Lock and Dam #25 on the Upper Mississippi River — a U.S. infrastructure asset critical for efficient barge traffic.

“The river system in the United States is our lifeline and one of U.S. Soy’s biggest advantages over our competitors,” said Meagan Kaiser, USB farmer-leader and soybean farmer from Missouri. “It's vital that our supply chain remain strong and reliable so we can continue to market our products and provide the most sustainable, reliable nutrient source for our customers. Soybean farmers understand this, which is why the checkoff is working to modernize U.S. infrastructure and return value back to the farm.”

United Soybean Board (USB), the Soy Transportation Coalition, Illinois Soybean Association, Iowa Soybean Association, Minnesota Soybean Research and Promotion Council, Missouri Soybean Merchandising Council and Iowa Corn Promotion Board are proposing a $1 million investment to offset pre-engineering and design work expenses required to move the project forward. A new video from USB explains the cooperative effort.

If approved for federal funding, the project would be the first under the Navigation and Ecosystem Sustainability Program (NESP). NESP is a long-term program, authorized by Congress, to improve and restore the Upper Mississippi River System. Primary opportunities of improvement include reducing commercial traffic delays while restoring, protecting and enhancing the environment.

Lock and Dam #25 is one of seven existing locks specified by NESP for improvements. These existing locks, constructed in the 1930s, experience significant delays due to the single 600-foot lock chambers that raise and lower vessels moving from one water level to another. The 600-foot chambers require 1,200-foot barges to be disconnected and double-locked, significantly slowing delivery of U.S. grain commodities.

According to a report prepared for the United States Department of Agriculture (USDA) Agricultural Marketing Service, Lock & Dam #25 accommodates 200 million bushels of soybeans annually. The Waterways Council, Inc. states an outage at this facility would cost nearly $1.6 billion and increase the number of truck traffic trips by more than 500,000 annually. Additionally, a 2016 economic impact analysis by the USDA demonstrated this lock and dam’s importance — predicting that even just a three-month shut down (Sept.-Nov.) would result in aggregate economic activity related to grain barge transportation declining by $933 million.

“Agricultural products comprise 70% of what we move through this part of the Mississippi River, so it’s significant to U.S. farmers and international customers that rely on this infrastructure to have our transportation corridor functioning,” said Andy Schimpf, navigation business line manager, U.S. Army Corps of Engineers. “Barge transport via the lock and dam system provides the most economical, efficient and sustainable method of shipping U.S. soybeans and other goods.”

Lock and Dam #25 isn’t the first critical infrastructure project taken on by the soy checkoff. In 2019, the checkoff invested in research, analysis and design to initiate dredging of the lower Mississippi River. That initial funding helped open the door to a $245 million investment from the federal government and the state of Louisiana to dredge the area from 45 to 50 feet. Once complete, the project is estimated to create an additional $461 million value opportunity for U.S. soybean farmers.

“Investments should never be regarded as a one-time activity,” said Mike Steenhoek, executive director, Soy Transportation Coalition. “They must be perpetual. Infrastructure investments that soybean farmers have made in the past have positioned us for future success. We want to continue that level of investment, so U.S. soybean farmers and their consumers continue to benefit.”



November 2021 Dairy Market Report Now Available

Recent trends in production and herd sizes may be pointing toward a fundamental change taking place in the collective calculus of producing milk, a shift from repeated spurts of dairy herd and output expansion in the face of persistently low milk prices since 2014.

USDA data through September shows the fastest four-month drop in milk and milk solids production growth in two decades, a dramatic turnaround from spring months, when cow numbers and production were growing the fastest in more than a decade. This trend has continued in October. The unwinding of dairy cow expansion over the same period has equaled that of the great collapse of cow numbers at the height of the 2009 milk price debacle. Media reports of herd dispersals, particularly among the larger herds that have driven previous expansions, supports this thesis. High feed costs, other cost inflation and labor availability this year may also be playing a role in this turn of events.

Amid this backdrop, milk prices nationally this year have oscillated around the low $18/cwt range and thus have not yet reflected any unusual developing supply tightness. Cheese production continues to claim much of the available milk increase, keeping a damper on cheddar prices. But production of other key dairy products that affect milk prices has been shrinking and their prices rising, buoyed by rapid escalation in world prices. Milk production and exportable supplies of dairy products have tightened considerably in Europe and Oceania in recent months, and import demand remains strong. Fourth-quarter data will be closely watched, with the sense that each month could shed a lot more light on this developing situation.

Read the full report here.... https://www.nmpf.org/milk-pricing-economics/dairy-market-report/.  



What does ‘Net Zero’ really mean for dairy?

What does “Net-Zero” really mean for the dairy industry? The industry and organizations are pushing farmers to do something, but exactly what should they do?  That’s what the American Dairy Coalition (ADC) wants to help dairy farmers find out.
 
This tough topic is the central topic for ADC’s annual business meeting featuring GHG Guru Dr. Frank Mitloehner on Thursday, December 9th from 12 to 1:30 p.m. Central Time. It is being held virtually so that dairy farmers across the country can participate.
 
As keynote speaker, the engaging Frank Mitloehner, Ph.D., animal science professor and air quality specialist at University of California - Davis, will share his insights and help farmers wade through the noise. Known as the GHG Guru, his ‘handle’ on Twitter, Mitloehner is a foremost authority on greenhouse gas emissions and the dairy and livestock industries.
 
The business meeting will also include a welcome from Walt Moore, a Chester County, Pennsylvania dairy farmer who is president of American Dairy Coalition. During the meeting, farmers will also hear a federal policy update from ADC CEO Laurie Fischer.
 
“Scientific data is essential to develop sound solutions. Regrettably, farmers are being told they need to do something to reduce their GHG emissions sooner rather than later,” notes Fischer. “With all of the different tentacles of companies, government entities, checkoff partners in the dairy industry – moving in all directions – many farmers are wondering exactly what they need to do, and how much it will cost them to meet the dairy industry’s Net Zero Initiative goal of being carbon-neutral or better by 2050.”
 
There is also the aspect of the dairy industry’s transformation 2030 agenda through national dairy checkoff and its industry partners. What does it all mean?
 
During this ADC webinar meeting on December 9th, Dr. Mitloehner will help farmers understand the moving parts and give suggestions on the best way to move forward when it seems like there is too much push and not enough knowledge to understand the right path forward.
 
To register for the ADC webinar, scan the QR code with your phone or visit this link https://qrco.de/bcZgwc and scroll down to enter your registration information. A link to join in the meeting will then be emailed to you.  The webinar is free.