Thursday November 4 Ag News

 POLLS: METRO NEBRASKANS MORE TRUSTING OF MEDIA, NATIONAL INSTITUTIONS

Rural Nebraskans are less trusting of many information sources than they were in 2017 and are less trusting of many sources than their metropolitan counterparts, according to the 2021 Nebraska Rural Poll.

The annual poll, in its 26th year, surveys rural Nebraskans on their views and opinions on various local, state and national issues, as well as on their quality of life and access to services. This year, the Rural Poll was conducted in conjunction with a Nebraska Metro Poll.

Both rural and metropolitan respondents most trust information received from friends, family and acquaintances; local news sources, including TV news programs and newspapers; and public sources, including PBS and public radio. Additionally, metropolitan Nebraskans reported a high degree of trust in state newspapers. However, rural Nebraskans reported trusting local TV news, local newspapers, state newspapers, Fox News, public radio and national newspapers less than they did in 2017, when the poll last asked about trust in media institutions.

Both rural and metropolitan respondents agree that social networking sites and internet blogs are the least trusted information sources. However, they disagree about the trustworthiness of specific national cable TV news. Most rural Nebraskans surveyed also do not trust at all information from CNN and MSNBC, while their metropolitan counterparts do not trust information from Fox News.

“The decline in trust in media sources in rural areas mirrors national trends,” said Becky Vogt, manager of the Rural Poll. “National surveys have also seen a decline in trust in news that is more prominent among Republicans. Given the conservative nature of the state, particularly in rural areas, it is no surprise that the decline is happening here, as well.”

Differences between rural and metropolitan Nebraskans also extends to health information — specifically information on COVID-19. Metropolitan Nebraskans are more likely than rural Nebraskans to trust most health information sources a lot: their doctor or other health care professional, the U.S. Centers for Disease Control and Prevention, their local health department, the World Health Organization, state public health officials and local government officials.

While 46% of metropolitan Nebraskans surveyed trust coronavirus information from the CDC a lot, only 20% of rural Nebraskans agree. Similarly, 38% of metro respondents trust COVID-19 information from the WHO a lot, compared with only 12% of rural respondents. In fact, at least one-quarter of rural Nebraskans surveyed do not trust at all the WHO and CDC to provide reliable information on COVID-19.

However, most rural and metro respondents trust local health professionals for reliable information on COVID-19. Most trust their doctor or other health care professional either some or a lot; most also trust their local health department and state public health officials.

“It’s critical to understand who the public trusts most for health information, particularly during a pandemic,” said Heather Akin, assistant professor of agricultural leadership, education and communication at the University of Nebraska–Lincoln. “And it’s notable that our respondents were most trusting of medical doctors and local and state health authorities compared to other sources of health information. But we’ve also seen a decline in Americans’ trust in medical professionals over the last several years, and this could be an important time for doctors and health authorities to build and maintain the trust of their patients and constituents.”

Proximity matters with confidence in institutions, just as it does with trust in information sources, for both rural and metro residents. Overall, most rural and metropolitan Nebraskans surveyed have confidence in their local institutions (public safety agencies and public schools in their community, and voting and election systems in their county). Conversely, most have very little confidence in many national institutions (the U.S. House of Representatives, U.S. Senate and presidency). Most rural Nebraskans surveyed also have very little confidence in voting and election systems across the nation.

There were only a few large differences between metropolitan and nonmetropolitan residents in their confidence in institutions. Residents of metropolitan counties are more likely to have a great deal of confidence in voting and election systems in their county, voting and election systems across the nation, the presidency and executive branch, and the U.S. Supreme Court and the federal court system compared to residents of nonmetropolitan counties. The largest difference was in confidence in the national voting and election systems. While 22% of metro respondents have a great deal of confidence in voting and election systems across the nation, only 9% of rural respondents do.

Rural Nebraskans were also asked about their confidence in these institutions four years ago, and their feelings haven’t dramatically changed since. However, more rural Nebraskans surveyed have a great deal of confidence in the public safety agencies in their community than did in 2017. The proportion stating they have a great deal of confidence in their local public safety agencies increased from 30% in 2017 to 36% this year. Conversely, fewer rural Nebraskans surveyed express a great deal of confidence in the presidency than they did in 2017. The proportion saying they have a great deal of confidence in the presidency decreased from 11% in 2017 to 4% this year.

“Public trust in government in the U.S. has been at historic lows over the last 10 years, and people tend to express greater confidence in the presidency when the office is held by someone in their own political party,” Akin said. “The majority of rural poll respondents identify as politically conservative and the poll was conducted in the early months of the Biden presidency, so it is perhaps not surprising that confidence was low at this time.”
 
The Nebraska Rural Poll is sent to 7,000 households annually in rural communities across the state. In 2021, an additional 7,000 surveys were distributed to Nebraskans in metropolitan areas to capture experiences and perceptions across the entire state.

This year, 1,568 rural Nebraskans completed the Nebraska Rural Poll (a 26% response rate), and 1,305 urban residents completed the Nebraska Metro Poll (a 21% response rate). The polls asked participants about their experiences with the pandemic, their health and well-being, views about their community, and trust in institutions and media.

The Rural Poll is the largest annual poll gauging rural Nebraskans’ perceptions about policy and quality of life. The margin of error for the Rural Poll is plus-or-minus 2%; the margin of error for the Metro Poll is plus-or-minus 3%. Complete results are available at https://ruralpoll.unl.edu. The university’s Department of Agricultural Economics conducts the poll with funding from Rural Prosperity Nebraska and the Institute of Agriculture and Natural Resources. The Nebraska Business Development Center at the University of Nebraska Omaha provided funding to expand the survey to the Omaha and Lincoln metropolitan areas.



Platte Valley Cattlemen November Meeting
Tyler Engstrom, Platte Valley Cattlemen President

Platte Valley Cattlemen will be meeting Monday, November 15th, at Wunderlich’s Catering in Columbus.  Social hour beginning at 6:00 P.M. and the meal at 7:00 P.M.  We want to thank Rosendahl Farms Feed & Seed for sponsoring the social hour and Central Plains Milling for sponsoring the meal.

November is our annual cow calf meeting and we will be having Dr. Zeb Gray, PhD, PAS – Technical Feedlot Specialist at Diamond V presenting on the topic: Getting the most out of your Forage.

Hope to see you all there!

 

Nebraska Cattlemen Investing into the Future of Membership

Nebraska Cattlemen is pleased to announce the hiring of two individuals devoted exclusively to membership efforts. Jessica Rudolph, Director of Membership-Retention and Steven Stettner, Director of Membership-Recruitment will be actively working for the Nebraska Cattlemen membership.

Rudolph is a recent graduate from the University of Nebraska, where she focused on the areas of agricultural communications, ag econ, and agricultural entrepreneurship. She is active in her family’s cattle operation, where she works alongside her parents in day-to-day management decisions.

“Working for Nebraska Cattlemen has been a dream of mine for as long as I can remember. I am thrilled I have been granted the honor of working for Nebraska beef producers. My previous experiences in working for associations like Nebraska FFA as a State Officer and Nebraska Farm Bureau, gave me a passion for members. I cannot wait to serve the members of Nebraska Cattlemen.”

Jessica will begin her duties on Monday, November 22nd and can be reached at (402) 475-2333 or jrudolph@necattlemen.org.

Stettner previously served as the Regional Organization Director of Pennsylvania Farm Bureau. He is an integral part in his family’s operation of beef cattle. He is a graduate of Nebraska College of Technical Agriculture with a degree in Applied Science in Agriculture Production Systems and the University of Nebraska-Lincoln, where he earned a bachelor’s degree in Agricultural Engineering.

“I’m so excited to be able to apply my knowledge and skills to serve Nebraska’s cattle industry. The investment producers make through their membership in Nebraska Cattlemen makes an unbelievable impact on all Nebraskans. I look forward to serving the membership of such a highly effective group.”

Steven will begin his duties on Monday, November 15th and can be reached at (402) 475-2333 or sstettner@necattlemen.org.

“I am extremely excited in bringing two high quality individuals to our team that will actively serve and grow the membership of Nebraska Cattlemen. Steven and Jessica come to us with firsthand experience in membership, industry knowledge and passion,” stated Pete McClymont, Executive Vice President.



Midwestern Governors Explore State-Level Path Forward for Year-Round E15

Today a bipartisan group of seven Midwest governors, led by Iowa Governor Kim Reynolds, sent a letter to EPA Administrator Michael Regan inquiring about the steps necessary to implement a state-level solution to ensure E15 can be sold all year long.

“In the wake of the court decision, we are exploring all of our options to ensure retailers are able to sell E15 to consumers all year long without interruption…While we are not formally submitting the notification required under [the CAA] today, we do want to express our interest in potentially pursuing this approach,” the governors wrote. “We look forward to speaking with you soon about our options for protecting the substantial investments our states have made in clean fuels, and ensuring consumers in our states can continue to purchase E15 all year long.”

In today’s letter, the governors request guidance from Administrator Regan on what documentation is necessary for them to exercise their rights under the Clean Air Act (CAA) to end the E10 volatility waiver in their states, thereby ensuring gasoline blendstocks could be used to produce either E10 or E15 year-round.

“Our states lead the nation in the production of low-carbon ethanol, and we have witnessed first-hand the important environmental, economic, and social benefits generated by a healthy and thriving renewable fuels industry. Thus, we were extremely disappointed by the recent D.C. Circuit Court decision overturning the Environmental Protection Agency’s 2019 regulation that finally facilitated year-round sales of E15 (gasoline blended with 15% ethanol) in conventional gasoline markets,” the governors wrote.

The CAA sets a cap on fuel volatility during the summer driving season that begins June 1 of each year. Due to the recent court case brought by oil refiners, E10 continues to receive a small waiver, but E15 does not. This allows oil refiners to supply only the higher volatility gasoline that can be used to blend E10 but would not be legal to use for blending E15 without a volatility waiver.

“We all hope either Congress or EPA will take action to preserve nationwide access to E15 on a year-round basis,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “But if no timely national solution is found, governors have the authority to implement a state-by-state solution. We heartily applaud the Midwest governors for putting oil refiners on notice that their market obstructionism will not stand. The oil refiners may have created this problem, but all 50 governors can fix it. We’re proud that Iowa Governor Kim Reynolds is leading the way for a bipartisan Midwest solution.”



Ricketts Joins Governors Urging the EPA to Cut Red Tape for E15

Today, Governor Pete Ricketts joined a bipartisan group of Governors writing to Environmental Protection Agency (EPA) Administrator Michael Regan urging him to cut red tape inhibiting the sale of year-round E15.

“In the wake of the court decision, we are exploring all of our options to ensure retailers are able to sell E15 to consumers all year long without interruption,” wrote the Governors.  “It is our understanding that the EPA Administrator has the authority under Section 211(h) of the Clean Air Act to promulgate regulations that would put E10 and E15 on equal footing with regard to volatility limitations, thus re-opening the door to unencumbered, year-round sales of both fuels.”



RFA Applauds Midwest Governors for Proactively Pursuing Year-Round E15 Fix

The Renewable Fuels Association today thanked a bipartisan group of seven Midwestern governors for their efforts to explore what actions can be taken to allow the year-round sale of E15 in their states.

In a letter sent to EPA Administrator Michael Regan today, the governors seek guidance from the agency on how best to pursue a specific provision of the Clean Air Act that allows states to establish a “level playing field” for E15. The governors’ letter follows a recent D.C. Circuit Court decision that found in favor of oil refiners and overturned EPA’s 2019 regulation that finally allowed the year-round sale of E15 in conventional gasoline markets.

“In the wake of the court decision, we are exploring all of our options to ensure retailers are able to sell E15 to consumers all year long without interruption,” the letter states. “Fuel marketers and retailers, renewable fuel producers, the U.S. Department of Agriculture, and state governments have invested hundreds of millions of dollars in recent years to expand consumer access to low-cost, clean-burning fuels like E15. Not only does the recent court decision threaten to strand these public and private investments, but it also jeopardizes the progress we’ve made toward cleaning up our fuel supply and reducing emissions from transportation.”

Commenting on the letter, RFA President and CEO Geoff Cooper said, “We sincerely appreciate the efforts of these governors to protect and expand market opportunities for the region’s farmers and ethanol producers. The governors should be applauded for working together to proactively seek solutions at the state level, rather than waiting for Washington to clean up yet another regulatory mess created by the oil industry. Ethanol producers and farmers stand with these governors, and we will leave no stone unturned in our pursuit of an open and competitive marketplace for E15 and other lower-cost, lower-carbon ethanol blends. We encourage EPA to expeditiously respond to the governors and open the dialog needed to remove the outdated and absurd regulatory barrier to summertime sales of E15 in these states.”

Governors signing the letter were Kim Reynolds (R-Iowa), Pete Ricketts (R-Nebraska), Tim Walz (D-Minnesota), Tony Evers (D-Wisconsin), Doug Burgum (R-North Dakota), Kristi Noem (R-South Dakota), and Mike Parson (R-Missouri). In addition, Gov. Laura Kelly (D-Kansas) sent a similar letter to EPA in recent weeks. This bloc of eight contiguous states consumes approximately 13 billion gallons of gasoline annually. A universal move from E10 to E15 across these states would expand ethanol consumption by nearly 700 million gallons and boost corn demand by 225 million bushels.



 ACE Stands with Midwest Governors in Working to Ensure Retailers Can Sell E15 Year-Round

American Coalition for Ethanol (ACE) commended the bipartisan group of Midwestern governors today for their letter to Environmental Protection Agency Administrator Michael Regan, announcing their intention of exploring all options to ensure retailers can continue to sell E15 all year long without interruption and requesting an open a dialogue with EPA to make this happen.

In the letter, the governors expressed interest in pursuing an approach under the Clean Air Act to promulgate regulations that would put E10 and E15 on equal footing with regard to volatility limitations, thus re-opening the door to year-round sales of both fuels. “Specifically, Section 211(h)(5) of the Act establishes that upon the request from the Governor of a State, the Administrator shall apply volatility limitations to gasoline-ethanol blends that exclude the benefit of the 1-pound per square inch (psi) Reid vapor pressure (RVP) waiver provided to E10 in Section 211(h)(4),” the letter stated. “If approved, it is our understanding that such a request would result in a volatility limitation of 9 psi for both E10 and E15 in conventional gasoline areas, thereby establishing a level playing field and allowing retailers to use the same gasoline blendstock for both blends all year long.”

“Given the sense of urgency to ensure uninterrupted availability of E15 year-round in all parts of the country, we are enormously grateful that these Midwest governors are deploying their influence to protect this growing clean fuel market in their states and the investments of fuel marketers, biofuel producers, USDA, and state governments to expand consumer access to a low-cost, clean fuel blend, so it can continue to reduce emissions from transportation,” said Brian Jennings, ACE CEO.

“Since 2019, E15 adoption at retail sites has rapidly expanded and extending the 1-psi RVP waiver to E15 only makes sense to reflect the realities of today’s motor fuel market and year-over-year track record of successful growth,” Jennings added. “Losing E15 sales next summer would harm everyone through even higher pump prices and greenhouse gas and tailpipe emissions.”

“ACE stands by these Governors as they pursue all options to ensure E15, a clean and safe fuel with lower RVP emissions than E10 and straight gasoline, can still be sold next summer, and urges EPA to respond to this request in a timely manner,” Jennings said.

Governors Kim Reynolds (R-Iowa), Pete Ricketts (R-Nebraska), Tim Walz (D-Minnesota), Tony Evers (D-Wisconsin), Doug Burgum (R-North Dakota), Kristi Noem (R-South Dakota), and Mike Parson (R-Missouri) signed the letter. Gov. Laura Kelly (D-Kansas) also announced she hopes to speak with Administrator Regan about exploring all options to secure access to E15 year-round in a letter last month.



CHS Reports Fiscal Year 2021 Net Income of $554.0 Million

CHS Inc., the nation's leading agribusiness cooperative, today reported net income of $554.0 million for the fiscal year ended Aug. 31, 2021, reflecting an increase of 31% or $131.5 million compared to fiscal year 2020.

Key financial drivers for fiscal year 2021 include:
-    Consolidated revenues of $38.4 billion for fiscal year 2021 compared to $28.4 billion for fiscal year 2020, a year-over-year increase of 35%.
-    Significantly improved earnings across our Ag segment compared to the prior year driven by strong global demand for grains and oilseeds which drove commodity prices higher and a full year of improved trade relations between the United States and foreign trade partners.
-    Equity earnings from investments, particularly from CF Nitrogen and Ventura Foods, were a significant source of earnings during fiscal year 2021.
-    While improved refining margins in our refined fuels business resulted in increased margins as demand shocks from the COVID-19 pandemic began to subside, the resulting margin improvements were more than offset by exceptionally high costs for renewable energy credits and less favorable pricing on heavy Canadian crude oil processed by our refineries, resulting in lower earnings.

"Our employees once again demonstrated their commitment to delivering products and services to our owners and customers around the world, driving a significant increase in earnings in fiscal year 2021 over the prior year," said Jay Debertin, president and CEO of CHS Inc. "For the year, overall demand for grain and oilseed helped drive strength in agriculture, as well as crop nutrients and crop protection products and services. Based on fiscal year 2021 earnings, the company will return an estimated $50 million in cash patronage and $100 million in equity redemptions to member cooperatives and individual owners in fiscal year 2022."

Debertin added, "Our investments in innovation are helping drive our financial strength and leading to efficiency gains throughout our expansive network.  At the same time, we are enhancing the experience of our farmer-owners and customers who rely on CHS to help them meet the growing global demand for agriculture products, opening new opportunities for growth."

Fiscal Year 2021 Business Segment Results
 
Energy
Pretax loss of $10.6 million represents a $235.9 million decrease versus the prior year and reflects:
    While refining margins improved over the course of the year in our refined fuels business as demand shocks from the COVID-19 pandemic began to subside, the resulting margin improvements were negatively impacted by exceptionally high costs for renewable energy credits and less favorable pricing on heavy Canadian crude oil processed by our refineries, resulting in lower earnings.

Ag
Pretax earnings of $298.1 million represent a $244.4 million increase versus the prior year and reflect:
    Favorable weather conditions for the fall harvest and spring planting seasons, a full year of improved trade relations between the United States and foreign trade partners and favorable market conditions for our processing business during fiscal year 2021 compared to the prior year contributed to increased volumes and margins across most of our Ag segment.
    Improved earnings across most of our Ag segment were partially offset by lower grain and oilseed margins, including the impact of mark-to-market losses that are expected to reverse over time.

Nitrogen Production
Pretax earnings of $121.0 million represent a $69.2 million increase versus the prior year and reflect:
    Higher sale prices of urea and urea ammonium nitrate contributed to the significant earnings increase, which was partially offset by increased natural gas costs.

Foods
Pretax earnings of $67.9 million represent a $43.7 million increase versus prior year and reflect:
    Favorable market conditions for edible oils and improved sales volumes for Ventura Foods, compared with the early stages of the COVID-19 pandemic in fiscal 2020, drove earnings higher.

Corporate and Other
Pretax earnings of $38.9 million represent a $7.1 million increase versus prior year and reflect:
    Earnings increased primarily due to higher income from our equity method investment in Ardent Mills, as a result of strong sales volumes and improved commodity margins in fiscal year 2021.

CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, agronomy, grains and foods, CHS is committed to creating connections to empower agriculture, helping its farmer-owners, customers and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, seed, crop protection products, grain marketing services, production and agricultural services, animal nutrition products, foods and food ingredients, and risk management services. The company operates petroleum refineries and pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.



Cherokee Sales Co. to host World Livestock Auctioneer Championship Midwestern Qualifying Event    
 
The second of three regional qualifying events for the World Livestock Auctioneer Championship (WLAC) will be hosted by Cherokee Sales Co. in Cherokee, Okla., on November 10, 2021.  

Opening ceremonies will commence at 8:45 a.m. (CT), with the awards presentation following the competition. A total of 30 contestants will compete for a top 10 placing, granting them a spot in the semi-finals for the 2022 WLAC at Shipshewana Auction, Inc. in Shipshewana, Ind.
 
Each qualifying event is a live sale where each contestant auctions 8 drafts of livestock (traditionally cattle) to actual bidders. Contestants are judged on the clarity of their auction chant; professionalism; and their ability to conduct the sale while catching bids.
 
Contestants competing are Zach Ballard, Presho, S.D.; Leon Caselman, Long Lane, Mo.; Spencer Cline, Kingston, Ark.; Justin Dodson, Welch, Okla.; Keelan Dunn, Bowie, Texas; Will Epperly, Dunlap, Iowa; Quest Flesner, Hannibal, Mo.; Brandon Hamel, Natoma, Kan.; Jacob Hills, Ridgeway, Wis.; Calvin Hollis, Mannford, Okla.; Michael Imbrogno, Turlock, Calif.; John Kisner, Hays, Kan.; Lynn Langvardt, Chapman, Kan.; Josh Larson, Haxtun, Colo.; Kye Layman, North Platte, Neb.; Lane Marbach, Victoria, Texas; Tilon Mast, Auburn, Neb.; Clayton Neumann, Ringwood, Okla.; Lander Nicodemus, Cheyenne, Wyo.; Ross Parks, New Concord, Ohio; Chris Pinard, Swainsboro, Ga.; Kade Rogge, Rupert, Idaho; Ethan Schuette, Washington, Kan.; Jeff Showalter, Broadway, Va.; Barrett Simon, Rosalia, Kan.; Dustin Smith, Jay, Okla.; Lonnie Stripe, Humeston, Iowa; Andrew Sylvester, Wamego, Kan.; Scott Twardowski, Swanville, Minn.; Corbitt Wall, Canyon, Texas.
 
The public may attend the livestock auction and competition free of charge. It will also be streamed live on the Livestock Marketing Association’s Facebook page.

Qualifying events are balanced regionally across LMA Membership. The Eastern Qualifying event will be held at Tri-State Livestock Market in Abingdon, Va., on January 7, and is the final 2022 WLAC qualifier.



NGFA supports Behnam’s nomination to chair the CFTC  

The National Grain and Feed Association (NGFA) commended the Senate Agriculture Committee today for advancing the nomination of Rostin Behnam to serve as chairman of the Commodity Futures Trading Commission (CFTC).

The committee voted to advance Behnam on Nov. 4 after holding a hearing to consider his nomination on Oct. 27. His nomination now goes to the full Senate.

“Acting Chairman Behnam has the experience and background that make him exceptionally qualified to serve as CFTC chairman,” noted NGFA President and CEO Mike Seyfert. “We deeply appreciate the willingness of Mr. Behnam to be open to NGFA-member companies’ input on rulemakings during his time as CFTC commissioner and look forward to working with him as chairman. NGFA urges the full Senate to approve his nomination.”

Behnam joined the CFTC in 2017 and since January 2021 has served as the acting chairman. In 2019, Behnam spearheaded the establishment of the CFTC’s Market Risk Advisory Committee’s Climate Related Market Risk Subcommittee. Behnam previously served as senior counsel to Sen. Debbie Stabenow, D-Mich., chairwoman of the Senate Agriculture Committee.



 Ag Groups File Amicus Brief for Phosphate Imports

In response to the International Trade Commission’s decision to impose countervailing duties on phosphate imports from Morocco and Russia, ASA, along with the National Corn Growers Association, National Cotton Council, Ag Retailers Association and National Sorghum Producers, filed an amicus brief Oct. 29 to the U.S. Court of International Trade (CIT). The brief, which must still be accepted by ITC, encourages CIT to overturn ITC’s determination and subsequent imposition of tariffs on Moroccan phosphate imports.

In March, following a petition filed by the Mosaic Co., ASA, NCGA, and NCC filed comments to ITC opposing the imposition of duties on those phosphate imports from Morocco and Russia. However, ITC ruled that the U.S. fertilizer industry was harmed by subsidies that Morocco and Russia provided their industries and made the decision to impose countervailing duties. As a result of that determination, the Commerce Department began collecting duties of 19.97% on imports from Moroccan producer OCP and varying levels between 9.19% to 47.05% on Russian producers.

The brief filed by ASA and the other groups this week argues that trade remedy laws are not meant to punish domestic users when domestic producers elect to stop or reduce supplying the domestic market, such as the separate announcements from Mosaic and Nutrien that they would idle and close plants. This decision took roughly 2.1 million short tons of North American production offline and encouraged growers to look overseas to meet phosphate fertilizer needs. Read the brief here.

Soy growers believe countervailing duties on these imports will have a negative impact on the availability of phosphate fertilizer in the United States and, in turn, adversely affect crop production and farmer livelihoods.



Global Sales of U.S. Ethanol and DDGS Moderated in September
Ann Lewis, Senior Analyst, Renewable Fuels Association
    
U.S. ethanol exports in September slowed by 6% to 75.84 million gallons (mg). Export market share was notably concentrated, with the bulk of shipments going to just two countries. Canada remained the top destination for U.S. ethanol exports for the sixth straight month with imports of 36.2 mg, up 7%. This marks the largest monthly shipments to cross the border in over three years and accounts for nearly half (48%) of the September U.S. ethanol export market. Exports to South Korea jumped 81% to a five-month high of 17.9 mg (accounting for 24% of September exports). Mexico (4.8 mg, +20%), Peru (4.7 mg, -24%), and the United Kingdom (4.1 mg, -38%) were other larger customers. Once again, former key destinations Brazil, China, and India were nearly absent from the market. Shipments over the first nine months of the year were 872.2 mg, down 10% from the same period in 2020.

The U.S. imported 12.9 mg of undenatured ethanol from Brazil, the largest monthly volume to enter our borders this year.
 
U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—sank 31% to a seven-month low of 853,751 metric tons (mt) after hitting a six-year high in August. In a departure from recent norms, just five countries accounted for two-thirds of total DDGS exports in September. Exports to Mexico, our top customer for the last year, declined by 22% to 159,658 mt (representing 19% of all shipments in September). U.S. DDGS sales to Vietnam scaled back by 40% to 116,725 mt. Exports to South Korea perked up by 35% to 108,086 mt, a high for the year. Canada imported 93,449 mt DDGS, up 8% for the largest volume in over a decade. Shipments also increased to Indonesia, up 6% to 68,724 mt. Additionally, substantial volumes landed in China (49,977 mt, -12%), Turkey (28,489 mt, -67% to a 17-month low), Ireland (28,038 mt, +51%), New Zealand (22,000 mt, -56%), and Spain (19,378 mt, -54%). Total DDGS exports through September were 8.59 million mt, which is 5% ahead of last year at this time.



Growth Energy Statement on COP26

Growth Energy CEO Emily Skor released the following statement in response to the Biden administration's long-term strategy to achieve net-zero emissions and participation at the COP26 summit in Glasgow:

"Growth Energy stands with leaders at the U.N. climate conference working to accelerate our transition away from fossil fuels. Biofuel producers are on the front lines in the battle against climate change and key players in helping decarbonize the ag sector.
 
“Earlier this week, the Biden administration released a detailed strategy for meeting aggressive climate goals by 2030 and 2050. The report illustrates yet again that any effective climate strategy must recognize the critical role biofuels, like ethanol, play in decarbonizing our transportation sector and harnessing the power of carbon-smart practices now being adopted on U.S. farmland. Renewable fuels like ethanol remain the single most affordable and abundant source of low-carbon motor fuel on the planet that will be key to decarbonizing the millions of vehicles on the road now and into next decades alongside hard to electrify sectors like aviation.

“That's why we must have a healthy and thriving corn ethanol industry—at a minimum that means a Renewable Fuel Standard that meets statutory requirements and blends more ethanol in light duty vehicles every single year, a pathway for nationwide use of E15, and accurate modeling of ethanol’s carbon assessment.

“As President Biden presses for action in Glasgow, we look forward to working with his administration, as well as Congress, to ensure that biofuels continue to deliver the carbon reductions needed to meet our climate commitments at home and abroad—from passenger vehicles to our aircraft fleet."



Dairy Groups Applaud Major Climate-Smart Agricultural Initiatives Touted at COP26

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) applauded the U.S. Department of Agriculture’s announcement this week that it has joined the Pathways to Dairy Net Zero initiative as a formal supporter. The dairy groups also welcomed this week’s formal launch of the Agriculture Innovation Mission (AIM) for Climate.

These global agriculture efforts align with the approach U.S. dairy is taking to reduce its environmental impact through its Net Zero Initiative, which aims to achieve net-zero greenhouse gas emissions by 2050 and will help the U.S. dairy industry be an environmental solution now and in the future.

Pathways to Dairy Net Zero is a ground-breaking, multi-stakeholder initiative that aims to accelerate climate change action across the dairy sector. It is well-aligned with the U.S. dairy industry’s own Net Zero Initiative, launched last year, that reinforces its leadership within global agriculture as a source of climate solutions. AIM for Climate accelerates climate-smart agriculture and food systems innovation over the next five years by embracing practical solutions identified through investments in research and pilot programs. This is very similar to dairy’s Net Zero approach.

To help demonstrate the U.S. dairy industry’s commitment to sustainability and ensure our farmers, processors and exporters are well represented in this important global forum, USDEC’s senior vice president for Sustainability and Multilateral Affairs, Nick Gardner, was on the ground in Glasgow for COP26 events.

“Dairy farmers are proud to be part of the U.S. Dairy Net Zero Initiative to do our part in driving toward a global climate solution,” said Jim Mulhern, president, and CEO of NMPF. “USDA’s formal support for the Pathways to Dairy Net Zero, which NMPF also supports, will help to further catalyze this global effort by dairy sectors and governments around the world to foster sustainable production practices. We commend USDA’s global leadership in charting an incentive-based approach to encouraging sustainably managed livestock systems that can help feed a growing global population while minimizing environmental impacts.”

“With the world’s lowest greenhouse gas footprint per gallon of milk, U.S. dairy leads the world in sustainability. Yet we’re also deeply committed to making further progress as we work together with others in the U.S. and around the world to create environmental solutions that make U.S. dairy ever more competitive globally,” said Krysta Harden, president and CEO of USDEC. “Working together and with a firm commitment to the positive role that innovation and productivity can play in the sustainability arena, we’ll be able to help create the sustainable future so important to us all.”



USDA Dairy Products September 2021 Production Highlights

Total cheese output (excluding cottage cheese) was 1.14 billion pounds, 3.3 percent above September 2020 but 0.5 percent below August 2021. Italian type cheese production totaled 486 million pounds, 3.5 percent above September 2020 and 0.2 percent above August 2021. American type cheese production totaled 454 million pounds, 5.1 percent above September 2020 but 0.9 percent below August 2021. Butter production was 143 million pounds, 4.9 percent below September 2020 and 3.1 percent below August 2021.

Dry milk products (comparisons in percentage with September 2020)
Nonfat dry milk, human - 122 million pounds, down 3.1 percent.
Skim milk powder - 62.8 million pounds, down 22.5 percent.

Whey products (comparisons in percentage with September 2020)
Dry whey, total - 75.7 million pounds, down 1.6 percent.
Lactose, human and animal - 101 million pounds, up 7.8 percent.
Whey protein concentrate, total - 44.1 million pounds, up 7.6 percent.

Frozen products (comparisons in percentage with September 2020)
Ice cream, regular (hard) - 57.8 million gallons, down 15.3 percent.
Ice cream, lowfat (total) - 36.5 million gallons, down 12.6 percent.
Sherbet (hard) - 2.31 million gallons, down 22.2 percent.
Frozen yogurt (total) - 2.87 million gallons, down 9.0 percent.



At Virtual Fly-In, Farmers, Ranchers, and Rural Advocates Urge Washington D.C. for a Fair Farm Bill

Over the first three days of November, a coalition of farmers, ranchers, and rural advocates met virtually with more than 20 Congressional and Administrative offices to share their vision for a fair farm bill. Family Farm Action organized the event, identifying four areas in which the 2023 package of food and agriculture policies will need to change in order to help create a fair, inclusive, and competitive food system.

Hailing from states across the country, the group’s members illustrated what it’s like to work and live within a concentrated food and agriculture system controlled by only a handful of corporations, as well as the harms inflicted by industrial agriculture operations. “It’s a struggle to survive out here for small and midsize family farms,” said Chris Petersen of Iowa in a meeting with Senator Booker’s office. “A fair farm bill will give us a fighting chance in the marketplace.”

Dr. JohnElla Holmes, President and Executive Director of the Kansas Black Farmers Association, illustrated the devastating land loss she’s seen in her farming community of Nicodemus Kansas and told Senator Marshall’s staff that “a fair farm bill is paramount for our survival, and will help Black farmers hold on to their land.”  

In a meeting with USDA Under Secretary Moffitt and Deputy Under Secretary Wu, Al Davis of Nebraska said that “the thinness of markets in the cattle industry has resulted in a significant decline in the rancher's share of the retail dollar. If we want to revitalize rural America, we need to address that situation rapidly.”

Discussing the need for fair markets with Senator Hawley’s office, Barbara Ross of Missouri said, “I have watched the small towns of Missouri hollow out because there are no opportunities there. People need to be able to engage in agriculture without being under the thumb of some corporation.”

On Wednesday the 3rd of November, the group discussed their shared commitment to farmers and rural America with the Senate Agriculture Committee staff, which will have significant influence over farm bill language. Other Congressional meetings included those with the offices of Senators Lee, Tester, Grassley, Bennet, Brown, Merkley, Durbin, Hickenlooper, Wyden, Moran, and Fischer; additionally, the group met with staff from the offices of Representatives Pocan, Kuster, Estes, Mann, and Smith.

Family Farm Action and its affiliated farmers, ranchers, and advocates will continue to collaborate with these and other decision-makers toward a more fair farm bill in 2023.



 Turkish Buyer Delegation Explores DDGS Export Opportunities

A buyers delegation recently visited the U.S. to learn more about distiller's dried grains with solubles (DDGS) production. The group visited a trans-loader facility in Savannah where DDGS is unloaded from rail cars before being shipped out from the Port of Savannah.

Turkish buyers of distiller’s dried grains with solubles (DDGS) recently arrived stateside, hosted by the U.S. Grains Council (USGC), to learn how the supply chain for DDGS works – from producing corn in the field to DDGS production to delivering cargoes to the end-user. As a result, the Council was able to help create stronger trade relationships for the future between the buyers and U.S. exporters.

While in the States, the delegation met with exporters, visited the Port of Savannah and attended the Distillers Grains Technology Council Symposium.

“Turkey has been a valued partner since they bought their first significant quantities of DDGS almost 15 years ago,” said Kurt Shultz, Council senior director of global strategies. “There is still room for growth in the Turkish poultry and large animal markets, and these visits are essential to realizing that.”

On their first stop, the team visited Illinois, where it toured Marquis Energy and the farm of Paul and Donna Jeschke, Illinois Corn Marketing Board and USGC members. Paul sits on the Council’s Ethanol Advisory Team.

While at Marquis Energy, the group learned about the strategic placement of the ethanol plant on the Illinois River and the new technology created in-house to enhance the quality of DDGS. Later, on the Jeschke farm, the buyers toured grain storage facilities and visited the fields during harvest.

The delegation departed Illinois for the Port of Savannah, where it witnessed container ships being loaded and offloaded and visited a trans-loader facility at which co-products including DDGS are unloaded from rail cars into containers that then leave via the port for overseas destinations.

“Seeing the Port of Savannah was great for this team,” said Reece Cannady, Council manager of global trade. “Turkey is primarily a bulk market, and they have been that way for some time. However, in the recent months we’ve seen more container trade flow into the Turkish market, so there was a lot of curiosity surrounding container logistics in the U.S. That is something they really haven’t looked at before.”

Before heading home, the delegation attended the 25th Annual Distillers Grains Technology Council Symposium in Louisville, Kentucky. The symposium provided up-to-date information on DDGS marketing, animal nutrition, processing technologies and government regulations. The delegation learned about new industry trends and technologies throughout the conference. The group also met with U.S. DDGS suppliers while in Louisville, discussing exports to Turkey.

This program has been a continuation of extensive work done in the Turkish market by Council staff. Partnering with Ankara University, the Council conducted a trial with broiler feed, showing up to $6 per metric ton in feed cost reduction. Currently, the Council is engaging in another trial of layer feed, with results to be published in conjunction with the Turkish Egg Summit in December 2021.

The Council is also engaged with the dairy sector in Turkey. In July, the Council partnered with the Turkish Dairy, Meat, and Cattle Breeders’ Association (TUSEDAD) to host a webinar on the benefits of DDGS in dairy diets. The conference was televised on AgroTV Turkey and was viewed by more than 7,000 viewers, with more than 280 questions posed to the panel, of Council staff and academic partners.

“Our engagement in Turkey is extensive, and there is a reason for that,” said Ramy H. Taieb, Council regional director for the Middle East and Africa. “Reducing feed costs will be imperative to continue feed production growth in Turkey, and U.S. DDGS provide savings on a year-round basis.”

Turkey is the fourth-largest importer of U.S. DDGS, buying almost 1 million metric tons in the 2020/2021 marketing year.



McDonald's USA Commits $5 Million to Collaboration Accelerating Climate-Smart Farming Solutions

AgMission™, a global collaboration to reduce greenhouse gas (GHG) emissions in agriculture, announced today that McDonald’s USA has partnered to develop and implement climate-smart farming solutions with a $5 million commitment over the next five years.

The Foundation for Food & Agriculture Research (FFAR), the U.S. Farmers & Ranchers in Action (USFRA) and the World Farmers’ Organisation (WFO) established AgMission to unlock agriculture’s potential to reduce GHG emissions. This initiative ultimately aims to make the agriculture sector net-negative for GHG emissions. To achieve this audacious goal, AgMission brings farmers, ranchers and scientists together to co-create science-based solutions that can be rapidly deployed, increasing on-farm resiliency while mitigating the impacts of climate change.

Agricultural research and data are fundamental to this initiative. While this research is expanding, the existing work requires broader coordination and collaboration. Integrated, interoperable data is critical to coordinating this research and accelerating adaptation and adoption of climate-smart solutions that reduce GHG emissions. The resulting climate-smart practices will be both economically and environmentally sustainable, while reducing emissions.

“Climate change threatens our environment, food security as well as farmer and ranchers’ livelihoods. We are elated that McDonald’s sees the value of AgMission’s approach and is partnering with us on this unprecedented initiative,” said FFAR’s Executive Director Dr. Sally Rockey. “AgMission’s expansive, coordinated effort builds on existing research to coordinate agriculture’s climate-change response, connecting data from one part of the world that could benefit another.”

McDonald’s commitment to AgMission exemplifies the progressive actions the business is taking to help deliver net zero emissions across its global operations by 2050. The restaurant chain joins Pepsico as a Founding Partner of AgMission.

“We’re striving to feed more people in increasingly sustainable ways by creating a food system in which communities, animals and the planet thrive,” said Marion Gross, senior vice president and chief supply chain officer, North America, at McDonald’s. “It’s been proven time and again that real action comes through convening of partners around steady science-based strategies. We’re proud to contribute to the critically important work of AgMission and its partners to help measurably reduce greenhouse gas emissions, improve supply chain resilience and enable regenerative agriculture.”

While the agriculture industry accounts for 9.9 percent of GHG emissions in the United States and roughly 24 percent globally, it is the only sector with the natural potential to be net negative for GHG emissions.

“Soil and farmlands already sequester one hundred more times carbon than is emitted in a year,” said Erin Fitzgerald, CEO, USFRA. “But farmers and ranchers cannot do it alone. This effort requires a response that rivals the magnitude of the challenge we are overcoming.”

FFAR, USFRA and WFO each have a proven history of activating communities to drive meaningful change. AgMission leverages FFAR’s public-private partnerships and extensive scientific reach to fund research alongside USFRA’s ability to mobilize farmers, ranchers and other key decision makers across the U.S. food and agriculture sector and WFO’s ability to help expand these efforts globally.