Thursday November 18 Ag News

 Rural Mainstreet Economy Surging: Farmland Prices Climb to Record High
 
For the 12th straight month, the Creighton University Rural Mainstreet Index (RMI) remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.         

Overall: The region’s overall reading for November rose to 67.7 from October’s 66.1. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Solid grain prices, the Federal Reserve’s record-low interest rates, and growing exports have underpinned the Rural Mainstreet Economy. USDA data show that 2021 year-to-date agriculture exports are more than 23.2% above that for the same period in 2020. This has been an important factor supporting the Rural Mainstreet economy,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.  

Farming and ranching: The region’s farmland price index improved to a very strong, and record high of 85.5 from October’s 81.5. October’s reading represented the 15th straight month that the index has moved above growth neutral.   

The November farm equipment-sales index slipped to a strong 62.1 from 64.8 in October.  Readings for farmland prices and equipment sales over the last several months represent the strongest consistent growth since 2012.

Below are the state reports:
Nebraska: The Nebraska RMI for November rose to 74.1 from October’s 66.8. The state’s farmland-price index fell to 85.4 from last month’s 87.3. Nebraska’s new-hiring index improved to 70.8 from 70.6 in October. Compared to its pre-COVID-19 level, recent strong job gains for Nebraska’s Rural Mainstreet economy has generated a 1.3% gain in its nonfarm employment (non-seasonally adjusted).     

Iowa: The November RMI for Iowa improved to 70.9 from 65.4 in October. Iowa’s farmland-price index jumped to 84.9 from October’s 81.9. Iowa’s new-hiring index for November sank to 69.6 from 70.2 in October. Despite recent strong job gains, U.S. Bureau of Labor Statistics data indicate that compared to its pre-COVID-19 level, Iowa’s Rural Mainstreet has lost 2.6% of its nonfarm employment (non-seasonally adjusted).     

The survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005 and launched in January 2006.



Nebraska Farm Bureau Urges House Members to Oppose Build Back Better Plan

Nebraska Farm Bureau (NEFB) is urging Nebraska’s congressional delegation to oppose President Biden’s Build Back Better Act (BBB), also known as the reconciliation package. In a letter to Nebraska’s House of Representatives members, NEFB President Mark McHargue says the bill’s significant price tag along with the increased taxes used to pay for it outweigh any benefit that may exist in the legislation.

“This partisan package of new social spending and tax increases on both businesses and individuals falls well outside of legislation we can support. Given our continued concerns with increased inflation along with the significant amount of federal spending which has occurred over the past two years, now is not the time to spend trillions more and significantly increase taxes,” McHargue said.

With the Consumer Price Index at a 31-year high, NEFB fears the creation of new federal social spending programs will only make inflation challenges worse. At the same time, BBB is paid for by significantly increasing taxes on individuals and businesses which will limit economic growth and potentially destroy jobs at a time when our nation’s economy can least afford it. NEFB also raises concern over the bill’s potential methane tax on the oil and gas industry, which will lead to further gas/energy price increases.

“While some elements in this legislation would make significant investment in rural America and farmers and ranchers through voluntary conservation programs, the massive amount of spending and tax increases clearly outweigh any benefits we would see. It is our hope that the development of sound public policy transcends party politics and campaign promises,” McHargue said.

In the letter, McHargue asked House representatives to oppose the measure when it comes to the House floor for a vote.



Free trainings scheduled for UNL’s new Ag Budget Calculator program

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.



USDA CONDUCTS END-OF-YEAR HOGS AND PIGS SURVEY  

The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) is contacting producers for the December Hogs and Pigs Survey. This end-of-year survey is the most comprehensive gathering of quarterly data on market hog and breeding stock inventories as well as pig crop and farrowing intentions in every state.
 
“According to the most recent Quarterly Hogs and Pigs report in September, there were 75.4 million
hogs and pigs in the United States,” said Nicholas Streff, NASS Northern Plains Regional Director.
“The December survey and resulting report will continue to provide important indicators for the industry of what changes are occurring – if any.”
 
NASS will mail the questionnaires to all producers selected for the survey in late November. To ensure all survey participants have an opportunity to respond, NASS interviewers will contact producers who do not respond by mail or online to conduct a telephone interview.
 
The data gathered in this survey allow NASS to accurately measure and report conditions and trends in the U.S. pork industry over the course of the year. The information is used by all sectors of the industry, including producers themselves, to help make sound and timely business decisions.
 
NASS will publish the survey results in the Quarterly Hogs and Pigs report on December 23.  



Daugherty Water for Food Global Institute releases 2021 annual report

The Daugherty Water for Food Global Institute (DWFI) at the University of Nebraska has released its 2021 annual report online, showcasing the institute’s work over the past year — both local and global — related to water and food security.

Highlights include:
    With $5 million gift, UNMC College of Public Health and DWFI launch program on water, climate and health
    New agricultural water management tools use DWFI’s GloDET and SETMI products to create synergistic systems supporting producers and helping achieve critical global food production goals
    New agricultural water economics team advances water policy
    Nebraska nitrate working groups tackle persistent drinking water contamination
    DWFI leads smallholder sustainable irrigation entrepreneurship project in sub-Saharan Africa
    Solving the mystery of Nebraska’s intricate aquifer system

Every day, nearly a billion people in the world are food-insecure, without enough safe and nutritious food to lead healthy and active lives. Many of them are also water-insecure, without reliable access to an adequate amount of clean water to meet their needs. This situation has been exacerbated by the COVID-19 pandemic.

“The mission of DWFI —to secure more nutritious food with less stress on our scarce water resources—is more relevant and urgent than ever,” said Peter G. McCornick, DWFI executive director.

With now a decade of experience, and together with its Faculty Fellows, supported students and partners, the institute has become a global leader in enhancing knowledge, fostering future leaders and developing effective techniques to sustainably manage water and increase food security.

DWFI was founded to leverage the expertise of Nebraska and the University of Nebraska and extend it with strong state, national and international partnerships. The 2021 Annual Report highlights research impacts from the institute and its partners to expand and accelerate efforts to produce more nutritious food with less water; catalyze the development and deployment of solutions to the next generation of producers, water managers and entrepreneurs; strengthen water and food systems to adapt to water-related shocks; and reverse the wide-spread trend of water quality degradation.

The report is now available online https://waterforfood.nebraska.edu/annual-report-2021.



USDA Announces Iowa Farm Service Agency and Rural Development State Directors

Today, President Joe Biden announced his intent to appoint six U.S. Department of Agriculture (USDA) regional positions, including four Farm Service Agency (FSA) State Executive Directors and two Rural Development (RD) State Directors.

“These talented individuals joining USDA will play an integral role in advancing and promoting USDA’s mission by ensuring that we touch the lives of individuals throughout the country,” said Agriculture Secretary Tom Vilsack. “Each of them is a valued addition to our growing team.”

Farm Service Agency
Matthew Russell has been appointed FSA State Executive Director for Iowa
Matt Russell is a fifth-generation farmer operating a family farm and ranch near Lacona, Iowa. In 2018, he began as the executive director of Iowa Interfaith Power and Light, a statewide faith-based climate action organization. Russell has previously worked at Drake University’s Agricultural Law Center, the Iowa Citizen Action Network, the National Catholic Rural Life Conference and Bishop Gorman High School in Law Vegas, Nevada. He has a master’s degree in Rural Sociology from Iowa State University and a bachelor’s degree from Loras College.

Rural Development
Theresa Greenfield has been appointed RD State Director for Iowa
Theresa Greenfield is a committed public servant with a career focused on community development, housing, and real estate. She grew up on a small family farm outside the small town of Bricelyn, Minnesota and graduated with a degree in design and human development from Minnesota State University Mankato. After graduation, Greenfield worked as an urban planner and real estate developer. She became president of the Iowa division of Rottlund Homes in 2007 and most recently served as president of Colby Interests, a real estate firm based in Des Moines, Iowa.

FSA State Executive Directors oversee Farm Service Agency operations and agricultural policy implementation in the state. Each State Executive Director works with the State Committee to administer FSA programs and County office operations, develops and maintains stakeholder relationships with customers and other agencies and governments.

RD State Directors serve as the chief executive officer of Rural Development in the states and territories and are tasked with carrying out the mission of rural development to the benefit of everyone in rural America. In conjunction with the guidance and support of the National Office, State Directors are responsible for promoting the mission and strategic goals of Rural Development and provide key leadership to develop and support a productive, diverse, and inclusive state workforce.



October Milk Production in the United States down 0.5 Percent

Milk production in the United States during October totaled 18.5 billion pounds, down 0.5 percent from October 2020. Production per cow in the United States averaged 1,970 pounds for October,
6 pounds below October 2020. The number of milk cows on farms in the United States was 9.40 million head, 14,000 head below October 2020, and 14,000 head less than September 2021.

IOWA: Milk production in Iowa during October 2021 totaled 462 million pounds, up 2 percent from the previous October according to the latest USDA, National Agricultural Statistics Service - Milk Production report. The average number of milk cows during October, at 225,000 head, was unchanged from last month but up 6,000 from October 2020.  Monthly production per cow averaged 2,055 pounds, down 10 pounds from last October.



EPA Proposal Signals Bad News for Farm Country

Today EPA announced a proposed rulemaking to extend the Renewable Fuel Standard (RFS) compliance deadlines for 2019 and 2020. The 2019 extension applies only to small refineries, but the 2020 extension applies to all refineries. In response to this proposal, Iowa Renewable Fuels Association Executive Director Monte Shaw made the following statement:

“The details of today’s action by the EPA to delay RFS compliance deadlines seems to indicate very bad news is headed toward farm country.

“If EPA were only delaying the deadlines because of pending small refinery exemptions, then they would only delay the deadlines for small refineries. In fact, that’s exactly what they did for 2019. But the EPA proposed delaying the 2020 deadline for all obligated parties. This discrepancy appears to support the rumors and reports that EPA is preparing to take the unprecedented and illegal step of reopening the finalized 2020 RFS rule in order to reduce the volumes and destroy biofuel demand.

“We hope we are wrong and the difference can be explained away, but the different treatment of the compliance years must be for a reason. It is absolutely perplexing why the Biden EPA would delay and potentially plan to undermine the only federal law that is designed to reduce carbon emissions. To do so now, at a time of high gasoline prices, makes this action doubly confounding. IRFA urges the Biden EPA to follow the law and to implement the RFS fully and faithfully.”



Rabobank Global Animal Protein Outlook 2022: consistent demand and inflationary pressures

Rabobank releases today its 2022 Global Animal Protein Outlook. The report looks at the year ahead for the beef, poultry, pork and seafood markets in North America and beyond, while also examining global issues such as the continued push for sustainable production and the uncertainty around African swine fever.

Animal protein supply chains face across the board cost inflation with the most significant increases coming in four key areas – animal feed, labor, energy and freight. But Rabobank sees agile business leadership as the most likely route to sustainable growth.

“This next year has the potential to accelerate structural change as a result of escalating costs,” says Christine McCracken, senior animal protein analyst for Rabobank. “Success will most likely go the players that adapt to the changing business environment; embracing consumer preferences for sustainability and preparing for a surge in demand as economies continue to reopen and adjust following COVID-19-induced lockdowns.”

On a consumer level, Rabobank expects global demand for beef to remain solid, demand for salmon and shrimp to show ongoing strength, improving demand for poultry and pork, and strong sales of alternative proteins.

“Although demand will be strong and supporting livestock prices, North American feed costs are expected to remain at high levels,” says Don Close, senior animal protein analyst. “Producers will need to be vigilant on finding opportunities to lock in profitable margins.”

Here some additional insights from the report:
·       Stronger cattle prices are expected, as the beef cow liquidation continues in the U.S.

·       U.S. chicken production will increase to support stronger exports and foodservice sales. Domestic egg and turkey markets should see a lift in demand as well from the normalization of travel and holiday activities.

·       U.S. pork prices are expected to remain strong to the start of the year, then will trail near-record 2021 levels as production increases and markets adjust to the implementation of Proposition 12 sow housing mandates.

·       The focus on sustainability will increase further in 2022, as food retailers and foodservice chains actively position on this theme with consumers, investors and regulators.

The annual Outlook report is produced by Rabobank’s specialist team of animal protein analysts based around the world. The 2022 Outlook is the seventh edition of the animal protein outlook https://research.rabobank.com/far/en/sectors/animal-protein/ap-outlook-2022.html.



Fischer Reacts to Admin Action Signaling Federal Overreach on WOTUS
        
U.S. Senator Deb Fischer, a member of the Senate Agriculture Committee, released the following statement today after learning that the EPA is paving the way for a more expansive definition of “waters of the U.S.” (WOTUS):

“The action by the Biden EPA today is a troubling sign that the administration wants to pursue significant federal overreach over water resources. Nebraskans own the water in our state and work to carefully protect this precious resource. The Trump-era navigable waters rule gave families and communities predictability when it came to the definition of federal waters. As the administration considers these sweeping regulations, I will continue to fight to make sure the voices of Nebraskans are heard.”

In 2015, the Obama Administration finalized a rule that greatly expanded the definition of federally regulated Waters of the United States for Nebraska’s agriculture and business communities. President Biden signed an executive order that would roll back the Trump Administration’s executive order which began the process of rescinding Obama’s WOTUS rule and could lead to the elimination of the Navigable Waters Protection Rule released in April of 2020.

Senator Fischer has been a leader in efforts to stop the 2015 WOTUS rule and applauded the Trump Administration’s rescinding of the rule. On July 29, Senator Fischer joined 31 of her colleagues in cosponsoring legislation that would codify the Navigable Water Protection Rule into law. Last month, she signed a letter to EPA Administrator Regan and the Army Corps of Engineers Acting Assistant Secretary expressing opposition to altering the Navigable Water Protection Rule, the Trump administration’s replacement of the 2015 WOTUS Rule. Earlier this year, Senator Fischer joined 25 of her Senate colleagues in a resolution calling for the Senate not to eliminate the Navigable Waters Protection Rule.

After the Obama administration announced WOTUS, Senator Fischer chaired a Senate Environment and Public Works Committee field hearing in Lincoln regarding the rule. She also helped introduce the Federal Water Quality Protection Act, which would have required the Obama administration to consult states and stakeholders before imposing federal regulations on state-owned water resources, as well as the Defending Rivers from Overreaching Policies (DROP) Act. This bill targeted the flawed science used by the EPA to expand the definition of water.



NCBA Opposes Biden Administration Repeal of NWPR

Today, the National Cattlemen’s Beef Association (NCBA) criticized the Biden administration’s repeal of the Navigable Waters Protection Rule (NWPR), which provided regulatory certainty to farmers and ranchers and limited federal overreach.
 
“The NWPR was a solution to the disastrous 2015 ‘Waters of the United States’ (WOTUS) rule that vastly expanded federal jurisdiction over small, isolated water features. NCBA supported the NWPR and was disappointed when it was struck down in court,” said NCBA Chief Environmental Counsel Scott Yager. “With the Biden administration announcing their intent to craft their own WOTUS rule, NCBA will remain engaged with the Environmental Protection Agency (EPA) to ensure that any future rulemaking respects the needs of American cattle producers and their right to make investments in their land and care for their cattle.”
 
Background
 Since 1986, the federal government has been attempting to define what water features count as a “water of the U.S.” for the purpose of environmental regulation under the Clean Water Act of 1972. In 2015, the EPA and Army Corps of Engineers finalized a widely overreaching WOTUS definition that placed stock ponds, ephemeral features (water that only flows during rain), grassed waterways, and other isolated bodies of water that impact agriculture under federal control.
 
The 2020 Navigable Waters Protection Rule (NWPR) more appropriately limited federal jurisdiction to substantial bodies of water and was a major improvement to the 2015 WOTUS rule. NCBA defended the NWPR in court on numerous occasions before it was struck down by a U.S. District Court in Arizona in August 2021. As a result of the court decision, the EPA is relying on the pre-1986 rules, meaning cattle producers have experienced three different WOTUS definitions under the law in the past six years.
 
Senior EPA officials, including Assistant Administrator for Water Radhika Fox, have stated that the frequent “ping-pong” rule changes need to stop. Today’s repeal of NWPR unfortunately perpetuates the regulatory uncertainty that cattle producers have experienced for years, and NCBA looks forward to holding the EPA accountable for creating a limited, fair WOTUS definition.



NCGA: Proposed Rule on Waters of the U.S. A Step Back, Confusing for Farmers

Today, The Environmental Protection Agency and the Department of Army released a proposed rule to re-establish the pre-2015 definition of “Waters of the United States” (WOTUS). The proposed rule would remove the Navigable Waters Protection Rule, which was finalized in 2020 and provided long-overdue certainty and clarity for farmers affected by the scope of WOTUS jurisdiction.

In response to this development, NCGA President Chris Edgington released the following statement:

“We are extremely disappointed that this administration is taking us backward by removing a rule that has provided certainty for farmers who are working to feed and power America.”

"NCGA will continue to work with the agencies and advocate for a WOTUS definition that provides farmers clarity about their obligations under the Clean Water Act."



Proposed Water Rule a Return to Overreaching Regulations

American Farm Bureau Federation President Zippy Duvall commented today on the Environmental Protection Agency’s (EPA) proposed rule to replace the Navigable Waters Protection Rule.

“AFBF is disappointed EPA is returning to an overly complicated interim water rule. Overreaching regulations create major permit backlogs for the federal government and result in long delays for farmers and ranchers who are working to keep America fed. We are particularly concerned EPA is bringing back the significant nexus test. This case-by-case test threatens to unfairly regulate large areas of private land miles from the nearest navigable water.

“It’s troubling that EPA is putting a framework in place before completing the promised stakeholder engagement. Administrator Regan pledged to listen to the needs of farmers and ranchers and committed to a rule that is not overly burdensome. We urge him to stay true to his word.”



2020/2021 Marketing Year Ranks As Best Export Year Of All Time

U.S. exports of grains in all forms (GIAF) reached an all-time high during the 2020/2021 marketing year. Recovering from a two-year period of decline, exports rose by 28.3 percent, totaling 129.5 million metric tons (MMT), or 5.2 billion bushels, according to data from the U.S. Department of Agriculture (USDA) and analysis by the U.S. Grains Council (USGC).

To track GIAF exports, the Council reviews exports across 10 product sectors, including U.S. corn, barley and sorghum and value-added products including ethanol, distiller’s dried grains with solubles (DDGS) and other co-products, as well as the corn equivalent of exported meat products.

“Reaching an all-time high record for exports of grains in all forms while we continue to deal with a global pandemic shows the commitment of USGC members to continue to expand exports of grains in all forms as well as the dedication from USGC’s global staff to develop markets and increase market access for grains in all forms,” said Cary Sifferath, USGC senior director of global programs.

U.S. corn exports rose by 55 percent in 2020/2021 from the previous marketing year, totaling 69.8 MMT (2.7 billion bushels). China soared to record highs for U.S. corn imports, totaling over 21.4 MMT (845.2 million bushels) compared to 11.2 MMT (439.5 million bushels) in the previous marketing year. Notably, corn exports to South Korea rose 36 percent from the previous marketing year to 3.8 MMT (141.1 bushel), making it the fifth-largest market. Mexico experienced its third-largest year on record for corn exports at 15.5 MMT (631.8 bushels) in 2020/2021.

Another year of big sorghum sales to China helped offset losses from Mexico, Sudan and Japan, for a nearly 40 percent increase in overall U.S. sorghum exports year-over-year at 7.18 MMT (283 million bushels). China maintained its status as the top market, with imports doubling from last year for a total of 6.78 MMT (267.2 million bushels). Afghanistan imported U.S. sorghum for the first time on record, totaling 34,800 MT (1.3 million bushels), while Kenya and Cameroon saw substantial increases.

U.S. exports of barley and barley products increased by more than 56 percent in 2020/2021, totaling over 757,000 MT (34.7 million bushels) across 90 countries. Mexico had a record year, purchasing more than half (54.4%) of all U.S. barley and barley products exported at 412,000 MT (18.9 million bushels). Additionally, Canada, the second-largest market, set a new marketing year record, importing more than 310,700 MT (14.2 million bushels) of U.S. barley and barley products.

Driven by strong export gains in Mexico, Vietnam, Turkey and Canada, U.S. DDGS exports totaled more than 11.6 MMT in 2020/2021, up more than 10 percent from the previous marketing year. Mexico represented over 18 percent of all U.S. DDGS exports at 2.21 MMT. Additionally, Turkish purchases of U.S. DDGS rebounded significantly in 2020/2021, increasing by more than 55 percent to nearly 937,000 MT.

The lingering effects of COVID-19 stay-at-home orders were reflected in the global ethanol trade in the 2020/2021 marketing year; however, U.S. ethanol exports experienced its fifth-largest year on record, with exports totaling 1.22 billion gallons (434 million bushels).

With the 2021/2022 marketing year in full swing, the Council will continue working around the world to promote the quality, reliability and value of U.S. coarse grain products, co-products and ethanol.



USDA Issuing Approximately $270 Million in Pandemic Assistance to Poultry, Livestock Contract Producers

The U.S. Department of Agriculture (USDA) has begun issuing approximately $270 million in payments to contract producers of eligible livestock and poultry who applied for Pandemic Assistance. Earlier this year, USDA’s Farm Service Agency (FSA) identified gaps in assistance including in the initial proposal to assist contract growers. In August, USDA released the improved program for contract producers to fill these gaps, providing support as part of USDA’s broader Pandemic Assistance for Producers initiative.  

“We listened to feedback from producers and stakeholders about impacts across livestock and poultry operations and made updates to be more equitable in the assistance we delivered,” said FSA Administrator Zach Ducheneaux. “For contract producers this meant expanding eligibility and providing flexibility such as considering 2018 or 2019 revenue when calculating payments and accounting for contract producers who increased the size of their operation in 2020 or were new to farming when the pandemic hit. Filling these gaps and not letting underserved producers slip through the cracks is a common theme throughout our approach under our Pandemic Assistance for Producers initiative.”

The Consolidated Appropriations Act, 2021, provided funding for payments to contract producers of eligible livestock and poultry for revenue losses from Jan. 1, 2020, through Dec. 27, 2020. Contract producers of broilers, pullets, chicken eggs, turkeys, hogs and pigs, ducks, geese, pheasants and quail were eligible for assistance, along with eligible breeding stock and eggs of all eligible poultry types produced under contract. Signup ran from Aug. 24, 2021, through Oct. 12, 2021.  

In total, the Coronavirus Food Assistance Program 2 (CFAP 2), of which assistance for contract producers is part, provided more than $18.8 billion to producers whose operations were impacted by the coronavirus pandemic. CFAP 2 had a fourfold increase in participation by historically underserved producers since the program reopened in April 2021. This highlights USDA’s commitment to increase outreach, education and technical assistance to historically underserved farmers and ranchers, including by investing $4.7 million to assist in targeted outreach for FSA programs.

As USDA looks for long-term solutions to build back a better food system, the Department is committed to delivery of financial assistance to farmers, ranchers and agricultural producers and businesses who have been impacted by COVID-19 market disruptions. In addition to the funding USDA is issuing today, the Department has provided a broad range of support to America’s farmers and ranchers as part of its Pandemic Assistance for Producers initiative, including:
-    More than $18.8 billion in Coronavirus Food Assistance Program 2 payments, including a fourfold increase in participation by historically underserved producers since the program reopened in April 2021.
-    Over $42 million in assistance for those who had to depopulate livestock and poultry due to insufficient processing access (Pandemic Livestock Indemnity Program).
-    Over $9 million to date for the logging and log hauling industry (Pandemic Assistance for Timber Harvesters and Haulers). Final payments are being calculated to be disbursed soon.
-    $1 billion to purchase healthy food for food insecure Americans and build food bank capacity.
-    $350 million in additional dairy assistance related to market volatility.
-    $500 million deployed through existing USDA programs.

A full list of Pandemic Assistance is available at www.farmers.gov/pandemic-assistance. USDA expects further Pandemic Assistance to continue to fill remaining gaps later this year.     



New Advocacy Program Blazes Trail for Beef

Driving the demand for beef starts at the grassroots with a strong network of advocates willing to share beef’s positive message. The new Trailblazers program, developed by the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, takes advocacy to the next level by giving participants the tools and training they need to promote beef to new audiences while addressing and correcting myths.

“Trailblazers is a competitive, highly engaging and interactive program that is developing the next generation of beef advocates,” said Chandler Mulvaney, director of grassroots advocacy & spokesperson development at NCBA. “The goal of this program is to empower the beef community to share their stories, which ultimately helps safeguard the work of cattle farmers and ranchers across the country.”

Trailblazers is looking for its first class of spokespeople to participate in a year-long hands-on program designed to train, equip and empower beef advocates. Selected candidates will receive training to become expert communicators, excel in media interviews and understand how to build confidence in beef related practices when talking to consumers.

Each year, 10-12 new Trailblazers will be selected to create a tight-knit community that works together to find solutions to social and practical issues impacting the beef community. Throughout the year, Trailblazers will receive advanced in-person and virtual training from subject matter experts, learning how to effectively engage on various social media platforms, interact with the media, and enhance public speaking skills. Upon completion of the program, Trailblazers will serve as industry spokespeople and inform beef advocates at the local and state levels on advocacy, media and spokesperson best practices.

The application process for the inaugural class of Trailblazers is now open. For more information and to apply, visit the website.



NFU Supports New Legislation Bringing Greater Fairness, Transparency to Cattle Market

Yesterday, the Cattle Price Discovery and Transparency Act was officially introduced by Sens. Chuck Grassley (R-IA), Deb Fischer (R-NE), Jon Tester (D-MT), and Ron Wyden (D-OR) Companion legislation was also announced in the U.S. House of Representatives, co-sponsored by Reps. Cindy Axne (D-IA) and Randy Feenstra (R-IA). National Farmers Union (NFU) supports this legislation and urges Congress to act quickly to pass this critically important legislation.

“Corporate consolidation in the cattle industry has given multinational meatpackers undue control over cattle markets,” said NFU President Rob Larew, “Uncompetitive markets hurt family farmers and ranchers and undermine our food security. NFU has been – and will continue to be – steadfast in our support for legislation that ensures a fair market for family farmers and combats the monopoly power of multinational meatpacking corporations.”

The legislation would bring greater fairness to cattle markets, shedding light on a market that is often opaque.
·     Establishes mandatory minimums for cash and negotiated grid trading, based on an 18-month rolling average, in each cattle marketing region.
·     Brings more transparency by requiring reporting of cattle weights and slaughter deliveries two weeks in advance.
·     Establishes a publicly-available cattle contract library.
·     Sets severe penalties for violations by packers.
·     Requires livestock mandatory reporting data be made consistently available.

“Farmers Union members thank Senators Grassley, Tester, Fischer, and Wyden for introducing the Cattle Price Discovery and Transparency Act. These meaningful reforms would increase price discovery and transparency in the cattle market. We also thank Representatives Axne and Feenstra for advancing a companion bill in the House,” Larew added.



Largest Producer-Only Cattle Group Rejects Compromised Cattle Market Bill

The board of directors of the nation’s largest producer-only cattle association, R-CALF USA, voted unanimously to reject the Senate compromise reached between S.949, the spot market protection bill or 50/14 bill introduced by Senators Chuck Grassley (R-Iowa) and Jon Tester (D-Mont.), and S.543, the Cattle Market Transparency Act of 2021 introduced by Senators Deb Fischer (R-Neb.) and Ron Wyden (D-Ore.). The compromise bill is Senate Bill 3229 (S.3229).

“The compromise bill is a completely inadequate response to the serious market crisis U.S. cattle producers have faced for going on seven years,” said R-CALF USA President Gerald Schreiber who added, “Before its finalization, we offered specific recommendations for improving the price discovery provisions in the compromise bill to ensure that immediate improvements could be made to our broken markets, but those recommendations were ignored.”

The group said the compromise proposal exempts over half the packing plants owned by JBS, the world’s largest beef packer, and a third of the plants owned by each of the other two largest beef packers in the United States, Tyson and Cargill, from any requirements to purchase fed cattle in the negotiated cash or negotiated grid markets.

“Senate Bill 949 imposed minimum volume levels on all 24 plants owned by the Big 4 beef packers, but this S.3229 compromise bill now excludes 9 of them,” said R-CALF USA CEO Bill Bullard who added, “The interests of America’s independent cattle producers are not being served by a reform measure that excludes nearly 40% of the packing plants in dire need of reform.”

The group also expressed concern regarding the compromise’s delegation of authority to the U.S. Department of Agriculture (USDA) to take up to two years before implementing any minimal purchase requirements, and the further authorization to establish minimum volume levels as low as the average volume levels measured during the previous 18 months.

“This means after waiting up to two years for any improvements to today’s ultra-thin cash market volume, the USDA is authorized to retain the same low levels they’ve been at during the past 18 months, and we know that too many cattle producers are already exiting our industry under these conditions,” said R-CALF USA Vice President Kyle Hemmert.

Between November 11 and 12, R-CALF USA submitted three memoranda to the negotiators of the compromise urging specific modifications to the original compromise language. The first memorandum expressed grave concerns for the negotiator’s adoption of a regional rather than national approach to imparting market reforms. Despite such concerns, the group nevertheless conveyed its willingness to offer suggestions for improving the original compromise draft, which it subsequently did in memoranda Parts 2 and 3.

In its Part 2 memorandum, the group offered four specific recommendations for the price discovery provisions in the compromise bill, including a request that the bill establish immediate minimal volume levels in statute and then authorize USDA to later increase those minimal requirements through rulemaking.

In the Part 3 memorandum, the group offered five specific recommendations to the transparency provisions in the compromise bill, including a request that the bill capture all known cattle procurement contracts such as cost-plus contracts and any additional compensation paid to certain feedlots such as end-of-month bonuses based on the number of cattle delivered each month.

“Even though we don’t agree with the regional approach favored by the negotiators, we nevertheless put forth a good faith effort to help them improve that approach, but they rejected our efforts,” Schreiber said.

“This crisis is too severe, and the need for meaningful reforms too great for R-CALF USA to settle for a proposal we know is inadequate to serve the interests of America’s cattle producers,” he concluded.       



 EPA Orders CHS Inc. in Minnesota to Stop Selling the Cancelled Pesticide Engenia

The U.S. Environmental Protection Agency (EPA) has issued a “stop sale” order to CHS Inc., headquartered in Inver Grove Heights, Minnesota, to immediately stop the sale or use of the cancelled pesticide Engenia in violation of the Federal Insecticide, Fungicide, and Rodenticide Act.

EPA issued a final cancellation order in June 2020 for three dicamba-based pesticides, including Engenia (EPA Reg. No. 7969-345), which prohibited the sale or use of such pesticides after July 31, 2020. In September 2021, the Minnesota Department of Agriculture documented the sale of Engenia at a CHS store in Herman, Minnesota.

Pesticides must be evaluated through EPA’s registration process to ensure that the products perform as intended prior to their distribution or sale. EPA issued the order in June 2020 cancelling the registration of Engenia and two other dicamba-based pesticides following a decision by the Ninth Circuit of the U.S. Court of Appeals vacating those registrations. Dicamba is an agricultural herbicide used to control weeds when applied to soybeans and other crops.



NCGA Urges EPA to Issue Delayed Renewable Fuel Standard Volumes

The Environmental Protection Agency issued a proposal today to further extend Renewable Fuel Standard compliance deadlines for 2019 and later because the agency has yet to propose and finalize 2021 and 2022 RFS volume requirements.

National Corn Growers Association President Chris Edgington made the following statement on the proposal:

“Through this year, we’ve heard from EPA that its intent is to uphold the law and put the RFS back on track following the waiver abuse of recent years. With 2022 just around the corner, EPA has yet to propose RFS volumes for the coming year, adding uncertainty to the renewable fuels marketplace. Rather than prolong the uncertainty, we urge the EPA to follow the statute by issuing RFS volumes that continue to provide for 15 billion gallons of ethanol. This will allow consumers to take advantage of the economic and environmental benefits of clean, renewable fuel like ethanol, which lowers fuel prices for drivers today.”



Growth Energy Statement on EPA’s Decision to Further Delay RVO Compliance  

Today, the Environmental Protection Agency (EPA) announced a proposal to extend the Renewable Volume Obligation (RVO) compliance deadlines for 2019 and 2020, as well as for the yet to be proposed 2021 RVO.  EPA is proposing to establish general timeframes for the extended compliance deadlines without giving specific dates. In addition, EPA is proposing to change how future compliance deadlines are determined. The 2019 RVO compliance deadline for small refineries is currently set for November 30, 2021, and the 2020 RVO compliance deadline for all obligated parties is currently set for January 31, 2022.

Growth Energy CEO Emily Skor released the following statement in response:
“EPA needs to release 2021 and 2022 RVOs immediately. Further delaying compliance deadlines for previous RVO years does nothing but contribute to ongoing uncertainty in the marketplace,” said Skor. “Sadly, even as our country faces rising gas prices, the EPA and the Biden Administration continue to give in to the loud voices of the oil industry without considering their detrimental impact on rural America.

“During his confirmation hearing, the EPA Administrator said he wanted to get the RFS back on track and reintroduce transparency into the program. To do so, EPA must issue strong 2021 and 2022 RVOs and ensure that the 15-billion-gallon biofuel blending requirements are met. It is past time for EPA to act.”



RFA Calls on Refiners, EPA to Meet RFS Deadlines

The U.S. Environmental Protection Agency today proposed a rule change extending Renewable Fuel Standard compliance deadlines for 2019 and later. The following is a statement from Renewable Fuels Association President and CEO Geoff Cooper:

“It’s long past time for refiners to demonstrate compliance with their 2019 and 2020 renewable volume obligations. There’s no good reason for EPA to kick the can down the road again, which only adds uncertainty and instability to the marketplace. Refiners and the EPA need to respect and meet deadlines, and we likewise call on EPA to immediately publish the long-overdue renewable volume obligations for 2021 and 2022. We had hoped things would be different under this administration, but EPA continues to miss its deadlines and create confusion in the marketplace. The rural economy needs and deserves the market certainty and predictability the Renewable Fuel Standard was intended to provide.”



NBB Expresses Frustration with Further RFS Delays

Today, the Environmental Protection Agency announced further extensions for oil refiners to comply with past-due Renewable Fuel Standard obligations from 2019 and 2020, which the agency previously extended in April. EPA still has not issued 2021 and 2022 RFS rules or the 2023 volumes or announced decisions on pending small refinery exemptions.

Kurt Kovarik, NBB's Vice President of Federal Affairs, stated, "The Biden administration and EPA are sending the wrong signals on fuel availability and gas prices. The uncertainty they are creating for the RFS will undermine biodiesel and renewable diesel producers, blow up demand for cleaner fuels, and derail the nation's progress toward carbon reductions. This is simply a gift to refiners who have ignored the RFS obligations for more than a year and a half and are demanding the administration bail them out. EPA needs to finalize RFS rules now."

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.



ADM Invests In and Expands Partnership with Farmers Business Network

ADM (NYSE: ADM), a global leader in nutrition and agricultural origination and processing, and Farmers Business Network® (FBN®), a global farmer-to-farmer network and AgTech company, today announced that ADM has made an equity investment as part of FBN's latest capital funding raise, and that the companies have signed a letter of intent to expand their existing relationship through a wide range of potential future areas of cooperation.

This partnership combines ADM’s scale and expertise across the global food and agriculture value chain with FBN’s cutting-edge digital farm commerce and data-analytics capabilities to identify opportunities to increase farmer profitability, expand sustainable agricultural practices, and provide farmers unprecedented convenience and product accessibility.

ADM and FBN have agreed to examine several areas of collaboration, including developing premium end markets for low-carbon grain that will reward farmers for the adoption of regenerative practices.

They will also explore working together to advance innovative technologies, like those currently offered through FBN’s Gradable™ platform, to improve access and data security for producers who market grain to ADM locations. Other areas of potential cooperation include:
-    Enabling FBN’s 30,000 farmers to conveniently sell grain to ADM’s extensive network of origination facilities with full digital transactional record keeping, sustainability tracking and payments through FBN’s Gradable Platform;
-    Advancing research to develop new biologicals, seed traits, fertilizers and crop protection products;
-    Enabling FBN farmers to conveniently and transparently purchase ADM products such as fertilizer and animal nutrition with FBN's leading e-commerce and finance platform; and
-    Increasing farmer convenience and input product access by leveraging ADM's substantial physical distribution network for FBN farmers.

“Differentiated grain and sustainable solutions are two of ADM’s strategic growth platforms, and FBN is the perfect partner to help power our success as we work together to find new ways to cultivate incremental value for stakeholders across the food, sustainable solutions and agricultural value chain,” said Greg Morris, president of ADM’s Ag Services & Oilseeds business. “We’ve already been working with FBN and producers to connect verifiable low-carbon crops with market demand, and now we’re excited to explore new areas of growth, from digital technology and analytics, to e-commerce, to shared infrastructure and geographical expansion.”

“Our mission as a company is to improve the profitability of family farms around the world for generations to come and this partnership with ADM promises to accelerate the development of our technologies, including our grain and sustainability platforms, that are designed to increase farmers’ profit potential,” said Amol Deshpande, FBN co-founder and CEO. “This partnership enables us to double down on putting farmers first by further investing in technologies that lower costs, improve transparency and create local community development opportunities in rural areas.”

The companies are also continuing their pilot program, launched earlier this year, to use FBN’s Gradable platform to measure and verify the carbon score of soybeans, and to connect farmers with customers eager to purchase low-carbon intensity crops and products that command premium prices.

“Producers have played a leading role in advancing sustainable agricultural practices, and now we have new tools to quantify the beneficial impact they’re having on the environment so we can go to market differently,” Morris added. “We’re excited to work with FBN to advance these innovative technologies, and we look forward to doing even more to help support producers.”

ADM’s minority investment in FBN is being made via ADM Ventures, the company’s corporate venture capital arm. ADM Ventures invests in cutting-edge startups with disruptive technologies across three key areas: human nutrition, animal nutrition and sustainability. ADM Ventures also seeks startups that utilize ADM’s assets and feedstocks to produce sustainable materials, in addition to technologies that enhance the effectiveness or efficiency of ADM’s operations.



Helena Finds Solution to Rising Fertilizer Costs in Soil Health

The economy is raising more than just prices as farmers question how to manage fertilizer investments in 2022. For Helena Agri-Enterprises, LLC, the answer lies beneath the surface. Soil health is one of the main factors influencing fertilizer efficiency, and making it a priority next season will help farmers ensure their valuable resources are well spent.

“Any time you make a financial investment, you’re looking for quality and a positive return,” says Mike Powell, Senior Brand Manager of Helena’s BioScience Portfolio. “It’s the same when you buy fertilizer. The difference is, for fertilizer to work, it has to get to the crop, and there are a variety of soil quality issues that can get in the way of that.”

Powell says now’s the time to solve that problem. He recommends blending a high-quality humic granule with dry fertilizer, and with good reason. Past research in corn showed Helena’s humic ore source combined with urea increased productivity even with a 15% reduction in nitrogen. While Helena encourages farmers to use optimal fertilizer rates, this creates options for those tightening their budgets. Its ability to provide greater benefits from early-season nutrition also helps farmers tailor fertility programs throughout the season.

Derek Emerine, Helena’s National Agronomist, credits this gain in efficiency to the high concentration of humic acids in Helena’s exclusive ore source. He says it takes more than just an increase in soil nutrient availability to boost growth and yield potential.

“In a typical dry fertilizer application, not all of the nutrients that go out are going to make it into the plant on their own,” says Emerine. “Our plants can’t absorb them, they get tied up in the soil or they’re lost to leaching. By delivering the right humic compounds to the soil, we not only protect fertilizer and hold it in the root zone longer, but we also deliver vital elements to help plants take up more nutrients.

Emerine is hopeful the renewed focus on soil health will continue far beyond this critical moment to improve efficiency for years to come. Through routine soil testing, farmers can identify deficiencies in the field and target the true needs of their crop. For additional information and fertility recommendations, farmers can visit helenaagri.com to learn more and to find their local Helena retailer.