Wednesday December 1 Ag News

 ALFALFA AS A SUPPLEMENTAL PROTEIN
Brad Schick, NE Extension Educator

Choosing the right protein may help bring the cost of feed down and more accurately meet the needs of our cattle. In some rations, alfalfa might be that choice.

Whether cattle are on winter range, corn stalks, or being fed prairie/grass hay, they often will need extra protein in their diet. Protein sources vary in cost and effectiveness. Protein is important because it is used by the rumen microbes to help break down low quality forage and then used by animal itself as microbial protein as they pass through the digestive tract. It’s essentially used twice.

Many times alfalfa is one of the cheapest natural source of protein, easy to use, and doesn’t require additional equipment. Non-protein sources of nitrogen such as urea may be cheap but won’t be as effective with low quality forage. The first steps to finding out how much extra protein your cattle need include testing your feeds and forages for protein and estimating consumption rate. Then determine the amount of supplementation needed which will depend if you are dealing with weaned growing calves, dry pregnant cows, or lactating cows and nursing calves.

Some winter diets such as winter range, corn stalks, or grass hay may require approximately one pound of extra protein per day. This can be supplemented every day or every other day and still keep cows productive, healthy, and meet requirements.



HUSKER TEAM GAINS MOMENTUM TOWARD DEVELOPING NITROGEN-EFFICIENT CROPS

As nitrogen fertilizer prices rise across the country, a research team that includes University of Nebraska–Lincoln scientists has gained new resources and partners as they work to decrease the amount of nitrogen that crops such as sorghum and corn require to reach their maximum yield potential.

The National Science Foundation recently awarded supplemental funding to the project, which received $3.9 million in 2018 for a four-year collaborative project between Nebraska and the Alabama-based HudsonAlpha Institute for Biotechnology. The two-year supplement will fund expansion of the partnership to include Alabama A&M University and support field trials and testing, which will build on the project’s early-stage research conducted in controlled environments such as the Greenhouse Innovation Center at Nebraska Innovation Campus.

Recent increases in the price of nitrogen fertilizer, a critical input for farmers growing crops in Nebraska and around the world, underscore the need for new crop varieties that can produce more grain from less fertilizer. Soaring energy prices, elevated freight costs, increased tariffs and extreme weather events are driving the costs of nitrogen fertilizer production and distribution to new heights. Simultaneously, concerns are growing about the effects of nitrogen fertilizer runoff on rural drinking water quality and ecosystem services. The situation highlights the challenges faced by Nebraska farmers, and producers worldwide, as they work to boost the food supply to meet demand from a population estimated to reach 10 billion by 2050.

“Increasing efficiency is one of the very few potential win-win-wins in agriculture,” said James Schnable, Charles O. Gardner Professor of Agronomy. He leads the Nebraska team, which also includes Tom Clemente, Eugene W. Price Distinguished Professor of biotechnology; Yufeng Ge, Harold W. Eberhard Distinguished Professor of biological systems engineering; and Jinliang Yang, assistant professor of agronomy and horticulture. “Crops that use nitrogen more efficiently make it possible to sustain or increase crop yields while reducing the environmental footprint of agriculture, and increase farmer profits per acre at the same time. At current prices for anhydrous ammonia, lots of farmers in Nebraska will have to spend more than $100 per acre on nitrogen fertilizer next year.”

During the next phase of the project, the team will shift its focus from studying the gene regulatory networks of a sorghum line known as Tx430 to conducting field tests using a set of 406 sorghum varieties assembled from around the world. The researchers will grow the lines under nitrogen-sufficient and deficient conditions, planting in both Nebraska’s temperate environments and the subtropical conditions of Alabama. Throughout the season, they will collect data on sorghum traits associated with yield by using manual measurements, high-throughput phenotyping measurements and drone-based automated phenotyping. Those measurements will be used to identify genes and gene regulatory networks associated with how well different sorghum lines can tolerate or thrive in different situations.

“We started working with sorghum back in 2018 for two reasons,” Schnable said. “The first is that it can grow on marginal crop land where crops like corn wouldn’t have enough water to thrive. But sorghum is also much more resilient to shortages of nitrogen than corn. In my field trials, a certain treatment may have corn looking sickly and yellow, but the untrained eye wouldn’t be able to tell the difference between the sorghum plots with or without fertilizer before the harvest. While the focus of this project is figuring out how sorghum handles adapting to soils with little nitrogen, my hope is that results we generate will serve as a roadmap for making corn more efficient, as well.”

The partnership with Alabama A&M, a historically Black, land-grant university, reflects the Nebraska Center for Plant Science Innovation’s priority of strengthening collaboration between the university and HBCU researchers and students. The NSF funding will support Alabama A&M undergraduates to conduct research at Nebraska and HudsonAlpha during the summer, diversifying the pipeline of future graduate students and researchers in the agrisciences.

The collaboration will also enable the Nebraska and HudsonAlpha contingents to share their expertise in digital and precision agriculture, particularly the use of drones and other high-tech instruments, such as robots, cameras and laser scanners, to assess the physical characteristics of plants. They will collaborate with Alabama A&M’s Ernst Cebert and Xianyan Kuang to bolster that institution’s capacity for drone-based automated phenotyping, the adoption of which is a priority for Alabama A&M.

“Alabama A&M is excited to be a part of this NSF-funded project,” said Cebert, who directs the Winfred Thomas Agricultural Research Station at the university. “In addition to playing a part in such a scientifically and environmentally impactful project, it is also important to us that we will be contributing to the training of the future biosciences workforce.”



Women in Agriculture’s Love of the Land conference to be presented virtually

Nebraska Extension’s Women in Agriculture program will host the Love of the Land Conference for female farmland owners and tenants looking to improve their business management skills, Dec. 9, via Zoom.

Industry experts will present workshops covering lease agreements, rental rates, crop and livestock insurance and more.  

Allan Vyhnalek, a farm and ranch succession educator with Nebraska Extension, will welcome attendees with his keynote address, “For the Love of the Land, and Your Effective Relationships, It is About Communication.”

Vyhnalek has spent the last 33 years in Extension working in both Iowa and Nebraska. His current role at the University of Nebraska-Lincoln allows him to help agriculture families through generational transfers.  

“Navigating the challenges of owning and renting agricultural land is becoming more complex, especially given recent volatility in commodity markets and input prices,” said Jessica Groskopf, director of the Women Agriculture program.

“The conference will prepare attendees with the knowledge and confidence necessary to make effective management decisions while better managing risk and improving profitability on their operations.”

The conference is free to attend but registration is required. For more information about the conference, and to register, visit the Nebraska Women in Agriculture website at https://wia.unl.edu.



Oak Creek Vineyard’s Sousek to be featured on Women in Ag webcast

“Open for Business: A Nebraska Women in Agripreneurship Series” will feature Kara Sousek, of Oak Creek Vineyard, during its next live webcast on Dec. 14 at 6:30 p.m. Central time.

Produced by Nebraska Women in Agriculture, the monthly webcast series highlights the entrepreneurial spirit of women in agribusiness from across the state, offering creative insights and the stories behind what it takes to build a business.

The conversations focus on surviving business shocks such as disasters, regulatory changes and shifting family dynamics. Featured business leaders are interviewed by Brittany Fulton, extension assistant with the Nebraska Women in Agriculture program.

Sousek is a fifth-generation farmer from Prague, Nebraska. She studied horticulture at the University of Nebraska-Lincoln and minored in the Engler Entrepreneurship Program. While she grew up surrounded by corn, beans, cows and pigs on the family farm, she felt drawn to diversified agriculture. She started working for Oak Creek Vineyard, near Raymond, early in her college career and became manager soon after graduating. The same year, she planted her own first acre of grape vines on the family farm by Prague.

For the past few years, Sousek has leased Oak Creek Vineyard from her former boss after he retired and is in the process of purchasing the vineyard. Through those years, she has held several day jobs related to her horticulture degree, and currently is the production manager at Great Plains Nursery in Weston. She plans on transitioning to running the vineyard full time soon, but currently manages the vineyards with her brother-in-law, in addition to their day jobs.

Sousek’s passion for the Nebraska wine industry is clear in her stated mission to provide the quality and quantity of grapes that Nebraska wineries need to produce exceptional wines and to grow their businesses.

The webcast is free to attend but registration is required on the Nebraska Women in Agriculture program website, https://wia.unl.edu.



Cattlemen’s Heritage Retains Wisconsin Firm, ESI Group, To Design, Build Beef-Processing Facility in Western Iowa

Cattlemen’s Heritage has selected the ESI Group of Hartland, Wis., to design and construct its processing facility located in southwest Iowa, lead developer Chad Tentinger said today.

The 500,000-square-foot Cattlemen’s Heritage beef-harvesting plant, located in northern Mills County just south of Council Bluffs, will harvest 1,500 head per day and employ up to 750 people. Groundbreaking is scheduled for spring 2022.

“We were impressed with the ESI Group because of its status as an industry leader with more than three decades of specialized experience in the design and construction of food distribution, processing, and automated facilities,” Tentinger said. “The ESI Group has the expertise and ability to ensure that our facility is up and running as planned in December 2023.”

ESI Group president Brad Barke indicated his firm’s commitment to the Cattlemen’s Heritage goal of opening its doors as early as December 2023.

“Chad and his team are determined to expanding beef processing in the upper Midwest to ensure that cattle producers receive a fair return on their financial investment and hard work,” he said. “We’re excited to play a part in that ambitious goal of changing the traditional methods of processing cattle through additional processing capacity and by incorporating the lessons the beef-processing industry has learned through the COVID-19 pandemic.”

Barke noted that the project will bring tremendous economic opportunities to the surrounding communities with an estimated 3,300 workers needed through construction. Companies or workers interested in working on the project should email estimating@esigroupusa.com and reference the Cattlemen’s Heritage project, he said.



National Pork Producers Council Hires New Chief Executive Officer

The National Pork Producers Council (NPPC) announced BryanHumphreys has been chosen as the organization’s new chief executive officer, effective Dec. 21, 2021, following the retirement of long-time leader Neil Dierks. Humphreys brings with him years of experience in the pork industry, including as a former NPPC employee, state association executive and National Pork Board senior vice president, as well as outside the industry as a campaign operative, lobbyist and business owner.

“I am honored to have been chosen to lead NPPC as its CEO and continue the great work Mr. Dierks has done on behalf of America’s pork producers,” Humphreys said. “This role is not one to take lightly. As CEO, I will strive to advance the industry and protect producers’ freedom to operate through innovative strategies and new partnerships. I look forward to working alongside producers, stakeholders, state associations and the entire team at NPPC to make a lasting impact for farmers across the country. Together, we will build a coalition that is stronger than ever.”

Before joining NPPC, Humphreys worked at the National Pork Board (NPB) as a senior vice president. In this role, Humphreys oversaw a multimillion-dollar budget, implemented a nationwide producer outreach plan during the pandemic and strengthened relationships on behalf of the organization. In doing so, Humphreys helped guide the organization to exceed expectations set by the industry.
 
Prior to his role at NPB, Humphreys served as the executive vice president of the Ohio Pork Council (OPC). At OPC, Humphreys cultivated award-winning producer image campaigns and fostered positive relationships with stakeholders and community members.

“For years, Bryan has been seen as a leader in the industry,” NPPC President Jen Sorenson said. “His strategic thinking and unique experiences embody the type of leadership we, as an industry, need to guide us through challenging times ahead. On behalf of the board of directors, we are thrilled to welcome Bryan to the team.”
 
Humphreys also served as the director of grassroots operations for NPPC and has several years of experience on political campaigns across the Midwest. Through these roles, Humphreys recruited advocates and volunteers to promote organization and campaign initiatives.

Humphreys is originally from Columbus Junction, Iowa, where he grew up on his family farm. Humphreys earned a bachelor’s from Iowa State University and a master’s degree from George Washington University. Today, Humphreys resides outside of Des Moines, Iowa, with his wife and son.



Pork Producers Lobby Lawmakers on Issues

Preventing foreign animal diseases, addressing a shortage of agricultural workers and reauthorizing a livestock price reporting law are the primary issues on which pork producers will lobby their congressional lawmakers over the next two days, during the fall Capitol Hill fly-in of the National Pork Producers Council. More than 100 producers from across the country are expected to participate virtually in NPPC’s Legislative Action Conference.

“These are critical but by no means the only issues of concern to U.S. pork producers,” said NPPC President Jen Sorenson, communications director for Iowa Select Farms in West Des Moines, Iowa. “Failure to address even one of these matters could make it very difficult for hog farmers to continue producing safe, nutritious pork for consumers around the globe. Our fly-in is an opportunity for producers to urge Congress to take action on important issues.”

Producers will ask their members of Congress to support funding for efforts to prepare for and prevent foreign animal diseases, particularly African swine fever (ASF), which recently was detected in the Western Hemisphere for the first time in more than 40 years. A pig-only disease, ASF has a very high mortality rate. NPPC has requested appropriations for more U.S. Customs and Border Protection agricultural inspectors; for the National Animal Health Laboratory Network, which provides disease surveillance and diagnostic support in cases of large-scale animal disease outbreaks; and for additional staff for USDA Animal and Plant Health Inspection Service’s Veterinary Services.

To address the ongoing labor shortage, producers will urge lawmakers to reform the H-2A visa program, which allows temporary, seasonal farm laborers. The pork industry wants the visa program expanded to year-round agricultural workers, without a cap on the annual number of visas. It also supports providing a pathway to legal status for agricultural workers already in the United States.

For the price reporting law, producers need Congress to quickly approve a multi-year reauthorization of the Livestock Mandatory Reporting Act (LMRA) or, at least, pass an extension of it. In late September as part of a short-term funding resolution, Congress extended the LMRA to Dec. 3. The law requires meatpackers to report to USDA the prices they pay for cattle, hogs and lambs and other information. USDA publishes twice-daily reports with pricing information, contracting for purchase, supply and demand conditions for livestock, livestock production and livestock product values.

During the fly-in, producers are expected to hear from Ranking Member of the Senate Agriculture, Nutrition and Forestry Committee John Boozman (R-AR) and Chairwoman of the Senate Committee on Rules and Administration and of the Senate Democratic Steering and Outreach Committee Amy Klobuchar (D-MN).



Nitrogen Fertilizer Prices End November 2021 at All-Time Highs

Nitrogen fertilizers maintained their spot as the clear leaders as average retail fertilizer prices continued to climb higher the fourth week of November 2021, according to sellers surveyed by DTN.   Seven of the eight major fertilizers recorded considerable moves higher compared to last month. DTN designates a significant move as anything 5% or more.

Leading the way higher was anhydrous, which was up a mammoth 33% from a month prior. The nitrogen fertilizer's average price was $1,308 per ton, which continues to be all-time high in the DTN data set.

UAN32 was 26% more expensive compared to last month with the average price at $660/ton, an all-time high. UAN28 was 25% higher compared to last month with the average price of $574/ton, also an all-time high.

Urea was 16% more expensive compared to last month with an average price of $868/ton. This is also an all-time high in our data. 10-34-0 was 14% more expense looking back to last month with an average price of $755/ton.

Prices for a couple fertilizers were "only" single digits higher. Potash was 6% higher than last month with an average price of $775/ton. MAP was up 5% from last month and had an average price of $915/ton.

One fertilizer, DAP, had just a slight price increase. The phosphorus fertilizer had an average price of $830/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.94/lb.N, anhydrous $0.80/lb.N, UAN28 $1.02/lb.N and UAN32 $1.03/lb.N.

Compared to a year ago, retail fertilizer prices all have increased significantly, with prices for some fertilizers increasing well over 100%. 10-34-0 is now 65% more expensive, DAP is 82% higher, MAP is 85% more expensive, potash is 130% higher, urea is 142% more expensive, UAN32 is 165% higher, UAN28 173% is more expensive and anhydrous is 208% higher compared to last year.



NCGA: Deeply Disappointed Fertilizer Companies, U.S. Commerce Department, Continue to Press for Tariffs at Expense of Farmers

The U.S. Department of Commerce today made a preliminary determination in favor of a complaint filed by CF Industries that urea ammonium nitrate (UAN) imports from Russia and Trinidad and Tobago are unfairly subsidized by their governments. As a result, the Department of Commerce is recommending countervailing duties on fertilizers from these countries. The decision comes on the heels of a decision by the U.S. International Trade Commission in March to grant a petition by the Mosaic Company to place tariffs on phosphorous fertilizer imported from outside the country. Those tariffs were also recommended by the Commerce Department.

In response to this development, the National Corn Growers Association President Chris Edgington released the following statement:

“Farmers across the country have spoken publicly over the last several weeks about the severe impact fertilizer shortages are having on the budgets of family farms. While there are a host of issues that contributed to this problem, including restrictive trade policies from other countries and the fallout from Hurricane Ida, the Mosaic tariffs have only made a bad situation worse. Given the crippling effect these tariffs have had on farmers, it’s deeply disappointing to see that the U.S. Commerce Department and CF Industries would continue to press for more tariffs. Farmers shouldn’t have to pay for disputes between American fertilizer companies and foreign producers. Mosaic and CF Industries can easily resolve these issues and provide immediate relief to farmers by dropping their petitions.”



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

Net farm income, a broad measure of profits, is estimated to have increased by $15.7 billion (19.9 percent) in 2020 relative to 2019 and is forecast to increase by another $22.0 billion (23.2 percent) in 2021 relative to 2020. Forecast at $116.8 billion in 2021, net farm income would be at its highest level since 2013 and 24.2 percent above its 2000–20 average of $94.0 billion when prior years are adjusted for inflation. In inflation-adjusted 2021 dollars, net farm income is forecast to increase by $18.4 billion (18.7 percent) in 2021 from the previous year.

Net cash farm income increased by $9.2 billion (8.6 percent) in 2020 relative to 2019 and is forecast to increase by $17.0 billion (14.7 percent) to $133.0 billion in 2021 relative to 2020. When adjusted for inflation, net cash farm income is forecast to increase by $12.6 billion (10.5 percent) from 2020. Net cash farm income in 2021 would be at its highest level since 2014 and 16.9 percent above its 2000–20 average of $113.8 billion. Net cash farm income encompasses cash receipts from farming as well as farm-related income (including Government payments) minus cash expenses. It does not include noncash items—including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings—reflected in the net farm income measure above.

Cash receipts from the sale of agricultural commodities are forecast to increase by $64.7 billion (17.8 percent, in nominal terms) from 2020 to $427.3 billion in 2021, driving most of the increase in both net income measures. Total crop receipts are expected to increase by $35.4 billion (17.9 percent) from their 2020 level following higher receipts for corn, soybeans, and wheat. Total animal/animal product receipts are expected to increase by $29.3 billion (17.7 percent) with increases in receipts for broilers, cattle/calves, and hogs.

Lower direct Government payments and higher production expenses in 2021 are expected to partially offset higher cash receipts. Direct Government payments, after increasing by $23.2 billion (103.5 percent) in 2020 relative to 2019, are forecast to fall by $18.5 billion (40.4 percent) from $45.7 billion in 2020 to $27.2 billion in 2021. The decrease is expected because of lower supplemental and ad hoc disaster assistance for COVID-19 relief in 2021 compared with 2020. Meanwhile, total production expenses, including operator dwelling expenses, are forecast to increase by $29.8 billion (8.3 percent) to $387.6 billion (in nominal terms) in 2021. Spending on nearly all categories of expenses is expected to rise.

Average net cash farm income for farm businesses is forecast to increase by $3,000 (3.5 percent) to $89,100 per farm in 2021. However, the regional average net cash farm income outlook is mixed. For farm businesses in the Heartland, Northern Great Plains, Prairie Gateway, Eastern Uplands, and Mississippi Portal average net cash farm income is forecast to increase in 2021, but it is forecast to decline in the Northern Crescent, Southern Seaboard, Basin and Range, and Fruitful Rim. Farm businesses specializing in hogs and corn are expected to see the largest growth in cash farm income in 2021, while those specializing in dairy, cotton, and specialty crops are expected to see 2021 declines.

Farm sector equity is forecast up by $76.0 billion (2.8 percent) to $2.81 trillion (in nominal terms) in 2021. Farm assets are forecast to increase by $88.9 billion (2.8 percent) to $3.26 trillion in 2021, largely reflecting anticipated increases in real estate value. When adjusted for inflation, both equity and total assets are forecast to fall by 1.0 percent. Farm debt is forecast to increase by $12.9 billion (2.9 percent) to $454.1 billion (in nominal terms) but decline 0.8 percent when adjusted for inflation. While real estate debt is forecast to increase in 2021, non-real estate debt is forecast to decline slightly. The farm sector debt-to-asset ratio is forecast to remain relatively steady at 13.91 in 2021. Working capital, which measures the amount of cash available to fund operating expenses after paying off debt due within 12 months, is forecast to increase by 9.6 percent in 2021 from 2020.

Median Income of Farm Operator Households Estimated to Fall in 2020, Forecast to Be Flat in 2021
Median total farm household income is estimated to decrease to $80,060 in 2020 and then forecast to be relatively flat in 2021 at $82,315. That is a nominal decrease of 3.7 percent (a 4.9-percent decline after inflation) between 2019 and 2020, and a 2.8-percent nominal increase (a 0.9-percent decline after inflation) in 2021.

Farm households typically receive income from both farm and off-farm sources. Median farm income earned by farm households is estimated to decrease in 2020 to -$1,198 from $296 in 2019, and then forecast to decline further to -$1,550 in 2021. The positive median farm income in 2019 was unusual as median farm income earned by farm households was negative each year between 1996 and 2018. Many farm households primarily rely on off-farm income: median off-farm income in 2020 is estimated at $67,873, a decrease of 1.3 percent from 2019. This decline is due to lower earned income—income from wages, salary, and nonfarm businesses—that is not fully offset by higher unearned income—income from interest, investments, pension and retirement accounts, unemployment compensation and other public transfers. In 2021, median off-farm income is forecast to rise by 4.8 percent to $71,123. Since farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.



USDA: Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 521 million bushels in October 2021. Total corn consumption was up 14 percent from September 2021 and up 8 percent from October 2020. October 2021 usage included 92.0 percent for alcohol and 8.0 percent for other purposes. Corn consumed for beverage alcohol totaled 3.84 million bushels, up 12 percent from September 2021 and up 16 percent from October 2020. Corn for fuel alcohol, at 469 million bushels, was up 15 percent from September 2021 and up 8 percent from October 2020. Corn consumed in October 2021 for dry milling fuel production and wet milling fuel production was 91.3 percent and 8.7 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.95 million tons during October 2021, up 11 percent from September 2021 and up 7 percent from October 2020. Distillers wet grains (DWG) 65 percent or more moisture was 1.30 million tons in October 2021, up 9 percent from September 2021 and up 25 percent from October 2020.

Wet mill corn gluten feed production was 300,634 tons during October 2021, up 7 percent from September 2021 and up 2 percent from October 2020. Wet corn gluten feed 40 to 60 percent moisture was 212,455 tons in October 2021, up 2 percent from September 2021 but down 1 percent from October 2020.

Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 5.91 million tons (197 million bushels) in October 2021, compared with 4.92 million tons (164 million bushels) in September 2021 and 5.90 million tons (197 million bushels) in October 2020. Crude oil produced was 2.35 billion pounds up 21 percent from September 2021 and up 3 percent from October 2020. Soybean once refined oil production at 1.73 billion pounds during October 2021 increased 8 percent from September 2021 and increased 5 percent from October 2020.



Weekly Ethanol Production for 11/26/2021

According to EIA data analyzed by the Renewable Fuels Association for the week ending November 26, ethanol production slowed by 43,000 barrels per day (b/d), or 4.1%, to a seven-week low of 1.035 million b/d, equivalent to 43.47 million gallons daily. Production was 6.3% above the same week last year, which was affected by the pandemic, but 2.4% less than the same week in 2019. The four-week average ethanol production volume declined by 1.7% to 1.053 million b/d, equivalent to an annualized rate of 16.14 billion gallons (bg).

Ethanol stocks rose 0.7% to a 12-week high of 20.3 million barrels. However, stocks were 4.4% below the year-ago level and 1.6% lower than the same week in 2019. Inventories increased in the Midwest (PADD 2) and Gulf Coast (PADD 3) but thinned across the other regions.
                                                                                                              
The volume of gasoline supplied to the U.S. market, a measure of implied demand, dropped 5.8% over the holiday week to a six-month low of 8.80 million b/d (134.84 bg annualized). Gasoline demand was 10.3% above a year ago but 2.6% less than the same week in 2019.

Refiner/blender net inputs of ethanol decreased 0.3% to a 31-week low of 883,000 b/d, equivalent to 13.54 bg annualized. Net inputs were 11.5% above a year ago but 2.1% below the same week in 2019.

There were zero imports of ethanol recorded for the fifth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of September 2021.)



CNH Industrial Completes the Acquisition of Raven Industries

CNH Industrial N.V. announced that it has completed its acquisition of Raven Industries, Inc., a U.S.-based leader in precision agriculture technology. The acquisition builds upon a long partnership and is an important milestone in CNH Industrial's digital transformation.

“Raven is a true pioneer in the precision agriculture space, and their technology is a perfect strategic fit that will differentiate us from our peers and significantly improve our competitive position,” said Scott Wine, Chief Executive Officer, CNH Industrial. “This acquisition will add strong innovation capabilities to accelerate our precision and digital strategy. I would like to commend both the Raven and CNH Industrial teams who are collaborating closely on a seamless transition to make this truly transformative deal progress smoothly.”

CNH Industrial is laser focused on delivering immediate value for its brands’ dealer partners and their customers, the world’s farmers. The first in-house products featuring fully integrated Raven precision agriculture systems will become available in 2022.

Headquartered in Sioux Falls, South Dakota, Raven was founded over 65 years ago and has created a leadership position in precision agriculture, high performance specialty films, and aerospace and defense solutions.



NCBA Fights for Definitive Labels on Lab-Grown Meat

Today, the National Cattlemen’s Beef Association (NCBA) submitted comments to the United States Department of Agriculture’s Food Safety and Inspection Service (USDA-FSIS) related to the labeling of meat or poultry products that contain lab-grown animal cells. NCBA believes that the term “beef” should only be applicable to products derived from livestock raised by farmers and ranchers. As USDA-FSIS works to develop regulatory standards for labeling lab-grown, or cell-cultured, protein products, NCBA is committed to ensuring that product labels are fair, accurate, and will safeguard a level playing field for all protein products competing in the marketplace.

The regulations USDA develops now will play a crucial role in ensuring adequate consumer understanding, and NCBA feels strongly that the best way to accomplish this is through labeling standards that will clearly differentiate these products by way of a “lab-grown” label.

“An NCBA consumer survey showed that when purchasing protein, 74 percent of consumers agree that there should be a definitive indication of whether meat being purchased is lab-grown or conventionally produced,” said NCBA Senior Executive Director of Government Affairs Danielle Beck. “If one thing is clear from our research, it’s that consumers want clear and definitive labels.”

The word “beef” represents a brand that has been cultivated through decades of innovation and stewardship by farmers and ranchers across the U.S. NCBA will continue to engage with both USDA and FDA to ensure that the regulations governing these products are science-based, appropriately prioritize food safety, and promote honesty and fair dealing in the interest of consumers.



American Dairy Coalition applauds Senators Gillibrand, Collins and Leahy on the introduction of the bipartisan Dairy Pricing Opportunity Act of 2021

The American Dairy Coalition applauds Senators Kirsten Gillibrand (D-NY), Susan Collins (R-ME) and Patrick Leahy (D-VT) for introducing the bipartisan Dairy Pricing Opportunity Act of 2021 today in the United States Senate. The bipartisan legislation launches national hearings on Federal Milk Marketing Order (FMMO) pricing methods.
 
Specifically, the bill requires the Secretary of Agriculture to initiate the process of holding FMMO hearings within six months on “the views and proposals of producers and the dairy industry on Class I skim milk price, including the ‘higher of’ formula… and any other views and proposals on the Class I skim milk price and such other matters as the Secretary of Agriculture considers appropriate.”
 
“When the dairy pricing system isn’t working for farmers, the economic ramifications are felt across the country. I heard from producers across the industry firsthand during my subcommittee hearing on dairy pricing, and the message was clear -- our dairy pricing system is inadequate, out of date, and working against producers. This bill is a great first step, and I look forward to continuing efforts on broader FMMO modernization,” said Senator Gillibrand, dairy subcommittee chair in a statement.
 
Senator Collins noted that “The Dairy Pricing Opportunity Act would help restore some stability to this sector by ensuring that USDA holds public hearings to receive farmers’ input on ways to correct the unintended consequences of a pre-pandemic pricing policy.”
 
Senator Leahy, appropriations chair, noted that “As Congress and USDA help farmers recover from the pandemic’s immediate impacts, it’s a critical time to reexamine the federal milk pricing system and ensure it works equitably for all farmers.”
 
“We are grateful to Senator Gillibrand for her early leadership when seeing the pricing inversions that resulted in net farm milk check losses estimated by Farm Bureau and others at $3 billion -- over $700 million on Class I value alone, plus the impact of de-pooling and negative producer price differentials,” said American Dairy Coalition CEO Laurie Fisher.
 
“Senator Gillibrand worked with her colleagues to send a May letter to Ag Secretary Tom Vilsack requesting producer compensation, and in September, she conducted a Senate subcommittee hearing on milk pricing,” said Fischer. “Today, Sen. Gillibrand and her colleagues have introduced this important bipartisan legislation to open the FMMO hearing process.”
 
When the change from the previous ‘higher of’ method to the current "average plus" method for Class I skim milk was made in the 2018 Farm Bill, there were no hearings or comment processes, and most producers were not aware of the change until it failed to perform equitably during disruptive market conditions.
 
“Economists acknowledge that the current Class I method caps the benefit at 74 cents on Class I, which equates to about 20 cents per hundredweight nationally on the all-milk price. However, this "average plus" method has no limits on the downside risk in the equation. Our dairy farmers have suffered through extreme examples of this during the first two years of implementation,” Fischer said, adding that the ADC board is on record supporting a return to the ‘higher of’ until FMMO hearings can evaluate a path forward that is fair to producers and the industry.
 
In a recent ADC poll, responses from producers in 10 of the 11 FMMOs showed a large majority across all dairy size categories experienced negative impacts affecting their confidence in risk management, and an even larger majority favored a return to the previous ‘higher of’ method for Class I pricing until a formal hearing process can adequately review proposals.
 
“Our producers have suffered. They have lost confidence in the functioning of the FMMOs and the performance of their available risk management tools – especially in their responsiveness to unexpected marketing conditions,” Fischer said. “This bill responds to producer concerns to get national hearings started. ADC looks forward to seeing this bill become law so our farmers can be at the table on milk pricing that affects their livelihoods.”
 
The Dairy Pricing Opportunity Act has been endorsed by the American Farm Bureau Federation, New York Farm Bureau, American Dairy Coalition, and Maine Dairy Industry Association.



NMPF Statement on the Dairy Pricing Opportunity Act
President and CEO Jim Mulhern:

“Sen. Gillibrand’s legislation, cosponsored by Sens. Leahy and Collins, adds bipartisan momentum to a range of critical milk pricing discussions that dairy farmers are having through NMPF’s Economic Policy Committee. NMPF is continuing to work with USDA and Congress on how best to remedy deficiencies in the Class I mover formula and fully recoup $750 million in unintended losses felt by farmers of all sizes. NMPF also is leading discussions on a broad range of Federal Milk Marketing Order reform issues important to producers in all regions of the country. We look forward to pursuing policy improvements that will serve all dairy producers more equitably and effectively.”



DFA DAIRY BRANDS TAKING ACTION TO ENSURE FAMILIES IN NEED HAVE MILK

Starting this month, 17 regional dairy brands owned by Dairy Farmers of America (DFA) will help fill a real need at food pantries across the country with the donation of more than 2 million shelf-stable “Giving Cow™” milks.

Milk is one of the most requested yet least donated items at food banks. This is largely because the regional food pantries and shelters, which are served by food banks, often lack the necessary refrigeration to store fresh milk. In fact, according to Feeding America®, people who get assistance from food pantries typically receive the equivalent of less than one gallon of milk per person a year.

Giving Cow Milk Offers a Shelf-Stable Solution for Food Pantries
The single-serve, 8-ounce “Giving Cow” packs of ultra-high temperature (UHT) pasteurized milk have a shelf life of up to 12 months. Typically, fresh milk has a shelf life of approximately 20 days after processing. The Giving Cow milk packages are specifically designed for food pantries and kids backpack programs to fight hunger and will not be sold in stores.

“When we learned that millions of kids are missing out on nutrient-rich milk, which is a childhood essential, we knew that we had to try and be a part of the solution,” says Sharon Springborn, senior director of brand marketing at DFA Dairy Brands. “The Giving Cow packs provide valuable nutrition and are shelf-stable, so they don’t require cold storage, which we know can sometimes be limited at smaller food pantries and shelters.”

The DFA regional brands participating in The Giving Cow program include: Alta Dena® Dairy, Cass-Clay® Creamery, Country Fresh® Dairy, Garelick Farms®, Guida’s Dairy, Jilbert™ Dairy, Kemps®, Lehigh Valley Dairy Farms®, Mayfield Dairy Farms®, Meadow Gold® Dairy, Oak Farms® Dairy, PET® Dairy, Purity™ Dairy, Reiter™ Dairy, Swiss Premium™ Dairy, T.G. Lee® Dairy and Tuscan® Dairy Farms.

An Ongoing Commitment to Keep Pantries Stocked with Milk
Earlier this year, to help families struggling with hunger, DFA, along with its farm family-owners, donated 21 refrigerators to local food pantries across its seven regional Areas throughout the United States and the equivalent of more than 225,000 servings of milk.

To get more details about how The Giving Cow program is giving back in local communities, go to thegivingcow.com and click on one of the brand logos to go directly to the brand page, where you can sign up to receive updates on donations.



USDA Updates Crop Insurance to Respond to Producer Needs, Support Conservation and Climate Mitigation Efforts

The U.S. Department of Agriculture (USDA) is making updates to crop insurance to respond to the needs of agricultural producers, including organic producers, as well as to support conservation of natural resources on agricultural land.  

Specifically, USDA’s Risk Management Agency (RMA) is making permanent a new provision that allows producers to hay, graze or chop cover crops and still receive a full prevented planting payment. To accommodate the different farming practices across the country, RMA is also increasing flexibility related to the prevented planting “1 in 4” requirement, as well as aligning crop insurance definitions with USDA’s National Organic Program.

“We are responsive to the needs of producers, and we are updating several key policies to encourage the use of cover crops and other conservation practices,” RMA Administrator Marcia Bunger said. “We want to provide producers tools to help mitigate and adapt to climate change as well as ensure crop insurance works well for a wide variety of producers, including organic producers.”

Haying, Grazing, and Chopping of Cover Crops
In July, RMA announced producers can hay, graze, or chop cover crops for silage, haylage, or baleage at any time and still receive 100% of the prevented planting payment. Previously, cover crops could only be hayed, grazed or chopped after Nov. 1. Otherwise, the prevented planting payment was reduced by 65% if producers took those actions on the cover crop.

RMA added this flexibility starting with the 2021 crop year as part of a broader effort to encourage producers to use cover crops, an important conservation and good farming practice. Cover crops are especially important on fields prevented from being planted because they cover ground that would otherwise be left bare, which helps reduce soil erosion, boost soil health and increase soil carbon sequestration.

This change builds on the advanced research and identified benefits cover crops have supporting healthy soils and cropland sustainability efforts. Studies also show that cover crops provide increased corn and soybean yields. While results vary by region and soil type, cover crops are proven to reduce erosion, improve water quality and increase the health and productivity of the soil while building resilience to climate change. Additionally, RMA provided a premium benefit to producers who planted cover crops through the Pandemic Cover Crop Program to help producers maintain cover crop systems amid the financially challenging pandemic.

“1 in 4” Requirement Flexibilities
For the 2020 crop year, RMA implemented a policy stating that for land to be eligible for prevented planting coverage, the acreage must meet the “1 in 4” requirement, which means the land must be planted, insured and harvested in at least one of the four most recent crop years. Now, RMA is adding flexibilities to recognize different farming practices and crops grown, as well as the availability of risk management options.

New flexibilities allowed in order to meet the “1 in 4” requirement include:
    The annual regrowth for an insured perennial crop, such as alfalfa, red clover, or mint, to be considered planted.
    Allow a crop covered by the Noninsured Crop Disaster Assistance Program (NAP) to meet the insurability requirement.
    If crop insurance or NAP coverage was not available, allow the producer to prove the acreage was planted and harvested using good farming practices in at least two consecutive years out of the four previous years to meet the insurability requirement.

Aligning Organic Terms
RMA is revising four organic definitions to be consistent with USDA’s National Organic Program. Consistency across USDA programs is important to eliminate the potential for confusion between the various programs that USDA is committed to providing to the producers.

This change builds on other RMA efforts to expand and improve current options for organic producers. In Sept. 2021, RMA announced several updates to Whole-Farm Revenue Protection (WFRP), including increasing farm operation growth limits for organic producers to the higher of $500,000 or 35% over the five-year average allowable income, and to allowing a producer to report acreage as certified organic, or as acreage in transition to organic, when the producer has requested an organic certification by the acreage reporting date. In addition, RMA announced it will be offering the new Micro Farm policy through WFRP that specifically targets coverage for small, diversified farmers, including organic growers.

Other Changes
RMA made other changes to Common Crop Insurance Policy Basic Provisions, Area Risk Protection Insurance Regulations, Coarse Grains Crop Insurance Provisions, and other insurance provisions, which published today:
    RMA is providing an option for producers to delay measurement of farm-stored production for 180-days through the Special Provisions, similar to flexibilities already available to grain crop producers.
    RMA added earlage and snaplage as an acceptable method of harvest for coarse grains. During the 2020 Derecho, many producers salvaged their damaged corn crop by harvesting as earlage or snaplage instead of grain or silage.

“By recognizing earlage and snaplage, we are providing confidence to producers that their crop is covered when a disaster changes their planned harvest method or if they choose to harvest in a manner other than reported on their acreage report,” Bunger said.

More Information
Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov.



USDA Announces December 2021 Lending Rates for Agricultural Producers

The U.S. Department of Agriculture (USDA) announced loan interest rates for December 2021, which are effective Dec. 1. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

Operating, Ownership and Emergency Loans
FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for historically underserved producers, including veterans, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers.

Interest rates for Operating and Ownership loans for December 2021 are as follows:
    Farm Operating Loans (Direct): 2.000%
    Farm Ownership Loans (Direct): 3.000%
    Farm Ownership Loans (Direct, Joint Financing): 2.500%
    Farm Ownership Loans (Down Payment): 1.500%
    Emergency Loan (Amount of Actual Loss): 3.000%

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.

Commodity and Storage Facility Loans
Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.
    Commodity Loans (less than one year disbursed): 1.125%
    Farm Storage Facility Loans:
        Three-year loan terms: 0.750%
        Five-year loan terms: 1.125%
        Seven-year loan terms: 1.500%
        Ten-year loan terms: 1.625%
        Twelve-year loan terms: 1.625%
    Sugar Storage Facility Loans (15 years): 1.875%