NEBRASKA AG LAND VALUES UP 16%, ACCORDING TO UNIVERSITY-LED SURVEY
The value of agricultural land in Nebraska increased by an average of 16% over the prior year, to a statewide average of $3,360 per acre, according to the preliminary findings of the University of Nebraska–Lincoln’s 2022 Farm Real Estate Market Survey. This marks the largest increase in the market value of agricultural land in the state since 2014 and is the highest non-inflation-adjusted statewide land value in the history of the survey.
By Region
Northeast District - $6950/acre +21%
East District - $8110/acre +19%
According to the survey, higher commodity prices and interest rates near historic lows have contributed to the recent robust real estate sales market. Survey participants also reported that those purchasing land looked to the asset as a hedge against inflation and economic uncertainty.
“Many operations improved their financial positions in the last year, despite rising machinery costs and input expenses,” said Jim Jansen, an agricultural economist with Nebraska Extension who co-authored the survey and report with Jeffrey Stokes, a professor in the Department of Agricultural Economics.
Jansen noted that the outlook for 2022 appears favorable, as commodity prices continue to rise, but cautioned against rising input expenses and concerns about drought across Nebraska.
Statewide, the preliminary report found that estimated values of center pivot-irrigated cropland rose by about 17%. Dryland cropland values rose between 15% and 19%. Grazing land and hayland market values range from about 10% to 13% higher than the prior year.
Survey results also revealed that cash rental rates for dryland and irrigated cropland trended higher, averaging about 10% to 15% higher than the prior year. Survey participants indicated crop prices as the major factor contributing to the increase in rental rates.
Grazing land and cow-calf pair rental rates trended steady to higher, with average statewide rates increasing about 6% to 8% over the prior year.
Average Cash Rental Rates by Land Type Land Type
Northeast District
Center Pivot Irrigated Cropland $340/acre, +11%
Dryland Cropland $245/acre, +9%
Pasture $69/acre, +4%
East District
Center Pivot Irrigated Cropland $330/acre, +14%
Dryland Cropland $235/acre, +7%
Pasture $55/acre, +6%
The Nebraska Farm Real Estate Market Survey is an annual survey of land professionals, including appraisers, farm and ranch managers and agricultural bankers. It is conducted by the Center for Agricultural Profitability, based in the Department of Agricultural Economics. Results from the survey are divided by land class and agricultural statistic district. Land values and rental rates presented in the report are averages of survey participants’ responses by district. Actual land values and rental rates may vary depending on the quality of the parcel and local market for an area. Preliminary land values and rental rates are subject to change as additional surveys are returned.
The preliminary report was released in the Department of Agricultural Economics’ weekly Cornhusker Economics newsletter on March 16. Its findings will be discussed during a pair of virtual landlord/tenant cash rent workshops that will be held March 24 and 25. To register for the workshops and read the report, visit https://cap.unl.edu/realestate. Final results from the survey are expected to be published in June.
HIGHLY PATHOGENIC AVIAN INFLUENZA DETECTED IN BACKYARD FLOCK IN NEBRASKA
Additional Cases Detected in Wild Birds
The Nebraska Department of Agriculture (NDA) in conjunction with the United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) is announcing a confirmed case of highly pathogenic avian influenza (HPAI) in a backyard flock in Merrick County. Since the initial announcement of a detection of HPAI in a wild goose in Lincoln on March 7, additional cases of the virus have been confirmed in wild geese in Cedar and Douglas counties.
HPAI is a highly contagious virus that spreads easily among birds through nasal and eye secretions, as well as manure. The virus can be spread in various ways from flock to flock, including by wild birds, through contact with infected poultry, by equipment, and on the clothing and shoes of caretakers. Wild birds can carry the virus without becoming sick, while domesticated birds can become very sick.
“Unfortunately, Nebraska has joined a long list of states currently dealing with highly pathogenic avian influenza,” said NDA Director Steve Wellman. “We are working closely with our counterparts at USDA APHIS to ensure we are following proper protocols to address this situation and control the spread of this virus as quickly as possible.”
According to NDA State Veterinarian Dr. Roger Dudley, the farm has been quarantined and the birds will be humanely depopulated and disposed of in an approved manner. Additionally, NDA will be establishing a 6.2-mile surveillance zone, as is USDA policy, around the affected premises. A surveillance zone means poultry producers should be on heightened alert and practice biosecurity measures to protect their flock. These producers should also know the signs and symptoms of HPAI and notify NDA immediately of sick or dying poultry.
Symptoms of HPAI in poultry include: a decrease in water consumption; lack of energy and appetite; decreased egg production or soft-shelled, misshapen eggs; nasal discharge, coughing, sneezing; incoordination; and diarrhea. HPAI can also cause sudden death in birds even if they aren’t showing any other symptoms. HPAI can survive for weeks in contaminated environments.
Poultry owners should report unusual poultry bird deaths or sick birds to NDA at 402-471-2351, or through USDA at 866-536-7593.
Enhanced biosecurity helps prevent the introduction and spread of viruses and diseases including HPAI. NDA and USDA have resources available to help poultry owners step up their biosecurity efforts.
• Know the warning signs of infectious bird diseases like HPAI. Be on the lookout for unusual signs of behavior, severe illness and/or sudden deaths.
• Restrict access to your property and poultry.
• Keep it clean. Wear clean clothes, scrub boots/shoes with disinfectant and wash hands thoroughly before and after contact with your flock.
• If you, your employees or family have been on other farms, or other places where there is livestock and/or poultry, clean and disinfect your vehicle tires and equipment before returning home.
• Don’t share equipment, tools, or other supplies with other livestock or poultry owners.
• In addition to practicing good biosecurity, all bird owners should prevent contact between their birds and wild birds, making sure wild birds cannot access domestic poultry’s feed and water sources.
• Report sick birds immediately to: NDA at 402-471-2351; the USDA at 866-536-7593; or your veterinarian. Early detection is important to prevent the spread of disease.
According to the Centers for Disease Control and Prevention, the risk to people getting HPAI infections from birds is low. No human cases of avian influenza viruses have been detected in the United States.
All poultry entering Nebraska must be accompanied by a VS form 9-3 or Certificate of Veterinary Inspection (CVI, or health certificate). If you are considering moving an animal into Nebraska from an affected state, please call 402-471-2351 to learn more. Nebraska poultry owners wanting to ship poultry out of state should consult the state veterinarians of the destination states for import requirements.
For more information about avian influenza, visit NDA’s website at https://nda.nebraska.gov/animal/avian/index.html or the USDA’s website https://www.aphis.usda.gov/aphis/. Additional information on biosecurity for backyard flocks can be found at http://healthybirds.aphis.usda.gov.
NDA’S MAIN OFFICE IS MOVING TO FALLBROOK
The Nebraska Department of Agriculture (NDA) is moving from its downtown location in the Nebraska State Office Building to 245 Fallbrook Blvd. in Lincoln. The move will begin Monday, March 28 and may take up to three weeks to complete. NDA teammates will be available and working throughout the moving process to provide needed services throughout the ag industry. NDA’s main phone number, 402-471-2341, will remain the same along with the main mailing address of P.O. Box 94947, Lincoln, NE 68509.
“This move will bring several state agencies that NDA collaborates with into one office building,” said NDA Director Steve Wellman. “We look forward to serving Nebraska’s farmers, ranchers and consumers while being located with the Department of Environment and Energy, Department of Natural Resources, Department of Economic Development and various Nebraska commodity organizations at this new location.”
NDA’s new office will be open and available to the public on Monday, April 18.
Nebraska Soybean Board to meet
The Nebraska Soybean Board will hold its next meeting on March 22-23, 2022 at the Embassy Suites located at 1040 P Street, Lincoln, Nebraska.
Among conducting regular business, the Board will review FY23 research proposals and other new opportunities. The Board will also participate in strategic planning to create new goals and tactics for the upcoming years. The meeting is open to the public and will provide an opportunity for public discussion. The complete agenda for the meeting is available for inspection on the Nebraska Soybean Board website at www.nebraskasoybeans.org.
About the Nebraska Soybean Board
The nine-member Nebraska Soybean Board collects and disburses the Nebraska share of funds generated by the one-half of one percent times the net sales price per bushel of soybeans sold. Nebraska soybean checkoff funds are invested in research, education, domestic and foreign markets, including new uses for soybeans and soybean products.
House Agriculture Committee Receives Feedback on the Role of USDA Programs in Addressing Climate Change
The U.S. House Committee on Agriculture held a hearing today to review the role USDA programs can play in addressing climate change.
Several coalitions that the National Corn Growers Association participates in were invited to provide testimony, including the AGree Economic and Environmental Risk Coalition, Bipartisan Policy Center’s Farm and Forest Carbon Solutions Task Force and the Food and Agriculture Climate Alliance.
“We believe that policies should be voluntary, and incentive-based; that they should advance science-based outcomes; and that they should promote resiliency and help rural economies better adapt to climate change,” said Charles F. Conner, president and CEO of the National Council of Farmer Cooperatives and co-chair of FACA.
The witnesses told committee members that there are several ways that the USDA could help address climate change, including by:
Strengthening the agency’s commitment to agricultural and forestry research to help provide farmers, ranchers and forest owners with the tools they need to adapt, mitigate and become more resilient to climate change.
Streamlining the Natural Resources Conservation Service conservation practice approval process.
Expanding broadband access in rural America.
Continuing to develop science-based, risk-benefit policies allowing farmers to more easily access risk management tools to meet sustainability goals.
The committee received the feedback as it continues to prepare for the reauthorization of the farm bill in 2023.
DAP, 10-34-0 Lead Fertilizer Prices Higher
Retail fertilizer prices tracked by DTN continued to be mostly higher the second week of March 2022. Two fertilizers spiked considerably higher.
For the second week in a row, seven of the eight major fertilizers were higher compared to the previous month, but only two were up a significant amount. DTN designates a significant move as anything 5% or more.
DAP and 10-34-0 were both 5% higher compared to last month. DAP had an average price of $919 per ton, while 10-34-0 was at $866/ton.
The remaining five fertilizers were slightly higher. MAP had an average price of $955/ton, potash $822/ton, anhydrous $1,490/ton, UAN28 $603 (all-time high price) and UAN32 $704/ton (all-time high price).
One fertilizer was slightly lower compared to the prior month. Urea had an average price of $901/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.98/lb.N, anhydrous $0.91/lb.N, UAN28 $1.08/lb.N and UAN32 $1.10/lb.N.
Most fertilizers continue to be considerably higher in prices than one year earlier. MAP is now 38% more expensive, 10-34-0 is 49% higher, DAP is 50% more expensive, urea is 87% higher, potash is 95% more expensive, UAN28 is 97% higher, UAN32 104% is more expensive and anhydrous is 139% higher compared to last year.
Weekly Ethanol Production for 3/11/2022
According to EIA data analyzed by the Renewable Fuels Association for the week ending March 11, ethanol production eased by 2,000 barrels per day (b/d), or 0.2%, to 1.026 million b/d, equivalent to 43.09 million gallons daily. Production was 5.7% more than the same week last year, which was affected by the pandemic, but 0.9% less than the same week two years ago. The four-week average ethanol production volume increased 0.4% to 1.019 million b/d, equivalent to an annualized rate of 15.62 billion gallons (bg).
Ethanol stocks grew by 2.7% to 25.9 million barrels, the largest reserves since April 2020. Stocks were 21.6% higher than a year ago and 5.5% more than the same week two years ago. Inventories built across all regions except the Rocky Mountains (PADD 4) and West Coast (PADD 5).
The volume of gasoline supplied to the U.S. market, a measure of implied demand, declined by 0.2% to 8.94 million b/d (137.11 bg annualized). Gasoline demand registered 5.9% higher than a year ago but 7.8% less than the same week two years ago.
Refiner/blender net inputs of ethanol ticked 0.1% higher to 897,000 b/d, equivalent to 13.75 bg annualized and a high for 2022. Net inputs were 7.3% more than a year ago but 2.0% less than the same week two years ago.
There were zero imports of ethanol for the seventh consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of January 2022.)
USDA Seeks Organizations to Nominate Members to the Cattlemen’s Beef Promotion and Research Board
The U.S. Department of Agriculture (USDA) is accepting applications from state cattle associations or state general farm organizations interested in nominating beef, dairy or veal producers or importers to the Cattlemen’s Beef Promotion and Research Board. Applications are due by April 18, 2022.
State cattle associations or state general farm organizations that wish to participate in nominating individuals for board membership must meet the following criteria:
The association or organization represents a substantial number of producers that produce a substantial number of cattle in the state.
The association or organization has a history of stability and permanency.
A primary or overriding purpose of the association or organization is to promote the economic welfare of cattle producers.
The following criteria will be considered for importer organizations or associations that wish to participate in nominating individuals for board membership:
The number and type of members represented (e.g., beef producers, dairy, beef and cattle importers).
Annual import volume in pounds of beef and beef products or the number of head of cattle, or both.
The stability and permanency of the importer organization or association.
The number of years the organization has existed.
The names of the countries of origin for cattle, beef or beef products imported.
State cattle or state general farm organizations or associations and importer organizations that wish to be certified to nominate members to the board must complete an Application for Certification of Organization or Association (LP-25) available on the Agricultural Marketing Service (AMS) Cattlemen’s Beef Board webpage.
After reviewing the application, USDA will notify the organization or association whether or not it has been certified. Organizations currently certified to nominate board members do not need to reapply. The Secretary of Agriculture appoints board members from nominations submitted by certified organizations.
For more information about the certification process, contact Barbara Josselyn, Research and Promotion Division, at (202) 690-2611 or Barbara.Josselyn@usda.gov.
The Cattlemen’s Beef Promotion and Research Board is composed of 94 producers and seven importers.
USDA Seeks Organizations to Nominate Members to the American Lamb Board
The U.S. Department of Agriculture (USDA) is accepting applications from lamb producers, seedstock producers, feeders or first handler organizations interested in nominating members to the American Lamb Board. Applications are due by April 18, 2022.
State, regional or national organizations that wish to participate in nominating individuals for board membership must meet the following criteria:
The membership of the organization consists primarily of producers, seedstock producers, feeders or first handlers who market or handle a substantial quantity of lamb or lamb products.
A primary purpose of the organization is for the production or marketing of lamb or lamb products.
Producer, seedstock producer, feeder or first handler organizations or associations that wish to be certified to nominate members to the board must complete the Application for Certification of Organization (LP-82) available on the Agricultural Marketing Service’s (AMS) American Lamb Board webpage.
After reviewing the application, USDA will notify the organization or association whether or not it has been certified. Organizations currently certified to nominate board members do not need to reapply. The Secretary of Agriculture appoints board members from nominations submitted by certified organizations.
Send completed forms to Barbara Josselyn, Research and Promotion Division, at Barbara.Josselyn@usda.gov and for more information about the certification process, contact Barbara Josselyn, (202) 690-2611.
The American Lamb Board is composed of six American lamb producer representatives, three feeder representatives, three first handlers and one seedstock producer.
USDA Seeks Organizations to Nominate Members to the United Sorghum Checkoff Program Board
The U.S. Department of Agriculture (USDA) is accepting applications from sorghum associations and farm organizations interested in nominating sorghum producers to the United Sorghum Checkoff Program Board. Applications are due by April 18, 2022.
State, regional or national organizations that wish to participate in nominating individuals for board membership must be one of the following:
State-legislated sorghum promotion, research and information organizations.
Organizations whose primary purpose is to represent sorghum producers within a state, region or at the national level.
Organizations that have sorghum producers as members.
Sorghum associations or farm organizations that wish to be certified to nominate members to the board must complete the Application for Certification to Make Nominations to the Sorghum Promotion, Research, and Information Board (LP-27) found on the Agricultural Marketing Service (AMS) United Sorghum Checkoff Program webpage.
After reviewing the application USDA will notify the organization or association whether it has been certified. Organizations currently certified to nominate board members do not need to reapply. The Secretary of Agriculture appoints board members from nominations submitted by certificated organizations.
Send completed forms to Barbara Josselyn, Research and Promotion Division, at Barbara.Josselyn@usda.gov and for more information about the certification process, contact Barbara Josselyn, (202) 690-2611.
The United Sorghum Checkoff Program Board is composed of 13 sorghum producers.
USDA Seeks Nominees for the National Honey Board
The U.S. Department of Agriculture (USDA) Agriculture Marketing Service (AMS) is seeking nominees for the National Honey Board to fill four member and five alternate seats whose terms will expire Dec. 31, 2022. Nomination applications are due by June 1, 2022.
The National Honey Board is seeking nominees for one first handler, one importer, one producer, one marketing cooperative representative member, and their alternates to serve three-year terms in office. The board also needs one additional importer alternate position to serve a two-year term.
Only qualified national organizations within the honey industry may nominate members. All nominees must meet the qualifications and have a completed application submitted. Producer members or alternates must produce a minimum of 50,000 pounds of honey in the U.S. annually based on the best three-year average of the most recent five calendar years.
A nomination form is available online at https://honey.com/nomination-form You may also contact Margaret Lombard, CEO, National Honey Board at (303) 776-2337 or margaret@nhb.org; or Katie Cook, marketing specialist, USDA at (202) 617-4760 or katie.cook@usda.gov.
The current 10-member board includes three first handlers, three importers, three producers, one marketing cooperative representative, and their alternates. More information about the board is available on the National Honey Board page of the AMS website.
Annual Certified Angus Beef Premiums Reach Record $182 Million
Is there enough high-quality beef? The market doesn’t seem to think so.
A bi-annual survey of the four largest packers showed a dramatic increase in market rewards for the Certified Angus Beef ® (CAB®) brand. Annual grid, formula and contract premiums paid on CAB carcasses in 2021 totaled $182 million, up from the 2019 record of $92 million. That’s $3.4 million a week going to producers hitting the CAB target.
Recent years of once-in-a-lifetime events spurred a higher volume of certified carcasses and increased boxed beef prices that helped drive CAB premiums to nearly double those paid in 2019. That signals very strong demand, says Paul Dykstra, CAB director of supply management and analysis.
"When the supply of finished cattle was overabundant and packers were able to be selective, they pursued the kind of carcasses that were most profitable and met their customers’ demand," Dykstra says.
Cattlemen who raise black Angus-influenced cattle that meet the brand’s specifications have the chance to earn more than ever before.
"In terms of dollars per hundredweight, the highest premiums for those CAB carcasses were 80% higher in 2021 versus 2019," Dykstra says.
The top reason cattle don’t qualify for the brand has always been inadequate marbling. Individually, carcass quality needs to surpass the national quality average for premium access, because those averages inch higher each year.
"It's not good enough just to say, ‘We reach 100% Choice in our Angus calf crop,’ even though that’s over the national average," Dykstra says. "The real gems are cattle that can hit at least 50% to 60% CAB with 20% Prime or better to get into the best premiums."
Such goals are a far cry from the 1990s when dismal beef demand dealt a staggering blow to an industry generating poor quality grades in fed cattle.
"We had a lot of people walk away from our product in the ’80s and ’90s and quality was a big reason. Our product wasn't very consistent," CattleFax CEO Randy Blach notes.
The highly marbled, branded product available today is the aggregate result of countless producers meeting consumer expectations for taste, thus pushing demand the highest in 33 years, Blach says.
It’s also a testament to CAB’s pull-through demand model and the work people do every day to sell the brand to more than 19,000 licensed partners in 54 countries around the world.
The movement to satisfy beef eaters didn’t happen overnight. It took nearly a decade from CAB’s start in 1978 until the first carcasses were rewarded financially for meeting the brand’s quality specifications. Since 1998, CAB has generated more than a cumulative $1.1 billion in premiums paid back to cattlemen.
"One of the blessings that we have as Angus breeders is through CAB and its marketing team," says Jonathan Perry, Deer Valley Farm general manager and CAB board chairman. "We have a built-in conduit to the consumer that gives us direction and gives us information that we wouldn't have access to otherwise as seedstock producers."
That shows in the CAB-to-Choice price spread, expressing the value CAB adds to an entire carcass. During the last two years, the top-end range for grid and formula premiums trended along the same line as the cutout (boxed beef) prices, Dykstra says. The CAB-to-Choice cutout spread averaged $17.76 per hundredweight in 2021, up from $10.39 in 2019.
Growing value and volume create a larger pool for cattlemen to dip into CAB grid premiums, the top end of those averaging $92 per head last year, Dykstra says.
Tremendous progress in the quality arena doesn’t mean cattlemen can lose sight of its importance.
"The need for quality genetics is as great as it’s ever been," Perry says. "As the industry gets better as a whole, it’s harder and harder for us to make improvements without really concentrated efforts."
The opportunity for added revenue remains great, reassuring to those raising premium beef. But it doesn’t hide how the past few years have presented a fair share of challenges.
"It's just this, plain and simple," Blach says. "We've had more cattle than we've had hooks."
Looking at current market dynamics, supply and harvest capacity are balancing out again.
"We’ve already got demand in our system and we’ll see that expressed in higher cattle prices," he says.
That points to market leverage and opportunity.
"There’s a major lesson to be learned here," Blach says. "When we have clear signals, producers respond."
Those signals seem to drive the market from gate to plate. With consumers willing to pay more for a great-tasting branded steak, packers are more willing to reward those who supply
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