Wednesday April 27 Ag News

NDA REPORTS SEVENTH CASE OF HPAI; EXTENDS ORDER PROHIBITING POULTRY EVENTS

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 seventh confirmed case of highly pathogenic avian influenza (HPAI).

The seventh farm, a flock of over 2.1 million laying hens, is in Knox County.

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 control zone, as is USDA policy, around the affected premises. Poultry producers in that control zone should know the signs and symptoms of HPAI and notify NDA immediately of sick or dying birds.

The controlled movement order that prohibits birds of any type at events including but not limited to fairs, expositions, swap meets, exotic sales and live bird auctions that NDA issued on March 26, 2022, that was set to expire on April 30, 2022, will now be extended through 11:59 p.m. on May 15, 2022. The order will be reevaluated again at that time.

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.

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.

NDA is encouraging bird owners to prevent contact between their birds and wildlife and to practice strict biosecurity measures. If producers suspect signs of HPAI in their flock, they should report it to NDA immediately at (402) 471-2351. More information for producers can be found at https://nda.nebraska.gov/animal/avian/index.html or http://healthybirds.aphis.usda.gov.



USDA Designates 12 Nebraska Counties as Primary Natural Disaster Areas

This Secretarial natural disaster designation allows the United States Department of Agriculture (USDA) Farm Service Agency (FSA) to extend much-needed emergency credit to producers recovering from natural disasters through emergency loans. Emergency loans can be used to meet various recovery needs including the replacement of essential items such as equipment or livestock, reorganization of a farming operation or the refinance of certain debts. FSA will review the loans based on the extent of losses, security available and repayment ability.

According to the U.S. Drought Monitor, these counties suffered from a drought intensity value during the growing season of 1) D2 Drought-Severe for 8 or more consecutive weeks or 2) D3 Drought-Extreme or D4 Drought-Exceptional.

Impacted Area: Nebraska
Triggering Disaster: Drought
Application Deadline: Dec. 19, 2022

Primary Counties Eligible:
Blaine, Knox, Nance, Dundy, Loup, Pierce, Hayes, Madison, Platte, Hitchcock, Merrick, Red Willow

Contiguous Counties Also Eligible:
Nebraska:
Antelope, Cherry, Hall, Perkins, Boone, Colfax, Hamilton, Polk, Boyd, Custer, Holt, Rock, Brown, Frontier, Howard, Stanton, Butler, Furnas, Lincoln, Thomas, Cedar, Garfield, Logan, Wayne, Chase, Greeley        
Colorado: Yuma
Kansas: Cheyenne, Decatur and Rawlins
South Dakota: Bon Homme, Charles Mix and Yankton

More Resources
On farmers.gov, the Disaster Assistance Discovery Tool, Disaster Assistance-at-a-Glance fact sheet, and Farm Loan Discovery Tool can help you determine program or loan options. To file a Notice of Loss or to ask questions about available programs, contact your local USDA Service Center.



AN ANIMAL UNIT
– Ben Beckman, NE Extension Educator

Accurately determining animal grazing demands on a pasture is half of the process to setting a proper stocking rate.  When the same animals are used year after year, this can be fairly straight forward.  However, when class of animal changes (running yearlings instead of pairs), reproductive stage (fall calvers instead of spring) or even new animals (1,200 lb. cow pairs instead of 1,400 lb.), the change can be difficult to account for and compare.  Using a common denominator such as the animal unit can help.

An animal unit or AU is the amount of forage consumed by a 1,000 lb. animal.  Because animals don’t eat all their food instantaneously, we pair animal units with varying time periods for practical use. So, we can have animal unit days (AUDs), animal unit months (AUMs) and animal unit years (AUYs).  While there is some debate on how much forage this is, the Society for Range Management and University of Nebraska use the amount of 26 lb. of oven dried forage consumed per day.

So how does knowing this help us determine stocking rates for different groups of animals?  Because AU are based on weight, we can scale up or down consumption over time by knowing the average weight of the animals we plan to graze.  A 1,200 lb. cow will consume 31.2 lb. of dry forage daily while this increases to 36.4 lbs. per day for a 1,400 lb. cow. and decreases to just 18.2 lbs. of forage daily for a 700 lb. yearling.

We can also adjust for reproductive stage.  A 1,200 lb. cow with calf will consume more forage early on due to lactation demands and slowly decrease while calf consumption increases closer to weaning.  If we average it out, we can figure a pair with a 300 lb. calf at weaning will consume 1.5 AU worth of forage.  Compare this to a 1,200 lb. fall calving, dry cow that is only eating for herself who is 1.2 AU and we have reproductive stage accounted for.

Adjusting stocking rates to meet the reality of animal demand can be intimidating, but by using a common factor like animal unit, the adjustment can be made easily and without too much paperwork.  Just make sure to compare similar time periods and adjust for animal size.



Farmers, vendors invited to participate in UNL East Campus Discovery Days and Farmer's Market

The University of Nebraska-Lincoln’s Institute of Agriculture and Natural Resources is seeking farmers and vendors to participate in the second annual East Campus Discovery Days and Farmer’s Market, which will take place on three Saturdays this summer.  

The events will take place from 10 a.m. to 2 p.m. on June 11, July 9 and August 13 and will feature a farmer’s market, as well as live music, food trucks, family activities and much more.  

“Hosting a farmer’s market on East Campus has been an incredible addition to our summer event line-up, said Jessie Brophy, director of external engagement for IANR.  

“We were thrilled with the turnout the event received last year, and we look forward to growing this event and continuing to connect our campus to the surrounding community.”

There is no participation cost or stall fee for those who participate. Participation is expected all three Saturdays. More information and application materials may be found at https://discoverydays.unl.edu/vendors.  

More information on East Campus Discovery Days and Farmers Market is available online at https://discoverydays.unl.edu/, with more information to be added as vendors and activities are finalized. For questions or additional information, contact Jessie Brophy at jbrophy3@unl.edu.  



Nominations for 2022 Iowa Farm Environmental Leader Award due May 2

Iowa Gov. Kim Reynolds, Secretary of Agriculture Mike Naig and Department of Natural Resources Director Kayla Lyon are reminding Iowans to nominate individuals or families in their communities for the 2022 Farm Environmental Leader Award.

Farmers and landowners who invest in conservation practices, like cover crops or wetlands, and incorporate best management practices into their operations to improve and protect the state’s natural resources are eligible for the award. They must also actively serve as leaders in the agriculture community.

An appointed committee representing both conservation and agricultural groups will review the nominations and select the winners. The recipients will be recognized on Wednesday, Aug. 17, at the Iowa State Fair. Gov. Reynolds, Secretary Naig and Director Lyon will present the winners with an Iowa Farm Environmental Leader Award and a yard sign donated by Bayer.

Since the creation of the award in 2012, more than 700 farm families have been recognized. The nomination form and a list of previous awardees can be found at iowaagriculture.gov/farm-environmental-leader-awards. Nominations for the 2022 awards will be accepted until Monday, May 2.



NCBA President Urges Congress to Adopt Broadly Supported Cattle Market Policies

Today, National Cattlemen’s Beef Association (NCBA) President Don Schiefelbein, a Minnesota cattle producer, testified before the House Agriculture Committee in a hearing on issues in the cattle markets. Schiefelbein urged House members to support key policies with broad, unified support across the entire cattle industry including a cattle contract library, Livestock Mandatory Reporting (LMR) reauthorization, and investments in small regional processing capacity expansion.
 
“The only people who know exactly how cattle producers should navigate these uncertain times are the individuals who work around the clock, day in and day out, to raise the safest and highest quality beef in the world—in other words: cattle producers,” said Schiefelbein.
 
Schiefelbein’s testimony was rooted in the policies adopted by NCBA through its century-old grassroots policymaking process.
 
Instead of focusing on controversial matters, NCBA has encouraged Congress to support policies with wide industry backing. “Broadly supported proposals have seen tremendous legislative success in this chamber recently,” said Schiefelbein. “However, repeatedly belaboring the same divisive issues has detracted from that collaborative work to the benefit of no one. It is time to move on and focus on areas where agreement can be reached.”
 
NCBA stands ready to work with policymakers to develop solutions that strength the cattle markets and benefit producers in every sector and region of the country.
 
NCBA is advocating for numerous policies with unified industry backing that address critical issues in the cattle markets.
 
Programs like the Cattle Contract Library and LMR provide critical market information to cattle farmers and ranchers, helping them make more informed business decisions.
 
To expand processing capacity and return leverage to the side of the producer, the U.S. Department of Agriculture (USDA) has pledged $1 billion of investments in launching and expanding small to medium-sized processing plants. NCBA is working with USDA to target those investments in the most effective way. Previously, NCBA secured introduction of the Butcher Block Act to establish loan and grant programs for new processing facilities.
 
NCBA is also the leading voice for oversight of the meatpacking sector and has called for the swift competition of a Department of Justice (DOJ) investigation into possible anticompetitive practices by the big meatpackers.
 
NCBA is the oldest and largest national trade association representing U.S. cattle and beef producers. Through a network of forty-four state affiliate organizations, NCBA represents 175,000 cattle farmers and ranchers in addition to over 26,000 direct members.



MAP Fertilizer Price Index Ties All-Time Record

Retail fertilizer prices continued to be slightly higher again the third week of April 2022, according to sellers surveyed by DTN. The prices of two fertilizers were higher by a significant amount compared to last month, which DTN designates as 5% or more.

The average retail price of MAP was up 6% compared to last month. The phosphorus fertilizer had an average price of $1,079/ton. This ties the all-time-high price for MAP in our DTN data set. The previous time this level was achieved was the first week of November 2008. The other fertilizer up considerably in price was UAN32, which was 5% more expensive compared to last month. The liquid nitrogen's average price was $730/ton (all-time high price).

The remaining six fertilizers were slightly higher looking back to last month. DAP had an average price of $1,050/ton (all-time high), potash $879/ton, urea $1,012/ton (all-time high), 10-34-0 $906/ton, anhydrous $1,534/ton (all-time high) and UAN28 $631/ton (all-time high).

On a price per pound of nitrogen basis, the average urea price was at $1.10/lb.N, anhydrous $0.94/lb.N, UAN28 $1.13/lb.N and UAN32 $1.14/lb.N.

Most fertilizers continue to be considerably higher in price than one year earlier. 10-34-0 is 48% more expensive, MAP is 54% higher, DAP is 68% more expensive, UAN28 is 81% higher, UAN32 is 87% more expensive, urea is 99% is higher, potash is 103% higher and anhydrous is 117% more expensive compared to last year.



Weekly Ethanol Production for 4/22/2022

According to EIA data analyzed by the Renewable Fuels Association for the week ending April 22, ethanol production expanded by 16,000 barrels per day (b/d), or 1.7%, to 963,000 b/d, equivalent to 40.45 million gallons daily. Production was 1.9% more than the same week last year and 6.4% above the five-year average for the week. The four-week average ethanol production volume decreased 1.8% to 977,000 b/d, equivalent to an annualized rate of 14.98 billion gallons (bg).

Ethanol stocks tightened by 1.5% to a fourteen-week low of 24.0 million barrels. However, stocks were 21.4% higher than a year ago and 5.0% above the five-year average. Inventories declined across all regions.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, declined by 1.5% to 8.74 million b/d (133.97 bg annualized). Demand was 1.6% less than a year ago but 3.5% above the five-year average.

Refiner/blender net inputs of ethanol ticked down 0.1% to 885,000 b/d, equivalent to 13.57 bg annualized. Net inputs were 0.6% more than a year ago and 4.3% above the five-year average.

There were no imports of ethanol for the thirteenth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of February 2022.)



USDA Dairy Products 2021 Production Summary

Total cheese production, excluding cottage cheeses, was 13.7 billion pounds, 3.5 percent above 2020 production. Wisconsin was the leading State with 25.3 percent of the production.

Italian varieties, with 5.75 billion pounds was 2.5 percent above 2020 production and accounted for 42.0 percent of total cheese in 2021. Mozzarella accounted for 78.0 percent of the Italian production followed by Parmesan with 8.4 percent and Provolone with 6.5 percent. Wisconsin was the leading State in Italian cheese production with 28.7 percent of the production.

American type cheese production was 5.57 billion pounds, 4.3 percent above 2020 and accounted for 40.6 percent of total cheese in 2021. Wisconsin was the leading State in American type cheese production with 19.4 percent of the production.

Butter production in the United States during 2021 totaled 2.07 billion pounds, 3.5 percent below 2020. California was the leading state in Butter production with 32.5 percent of the production.

Dry milk powders (2021 United States production, comparisons in percentage with 2020)
Nonfat dry milk, human - 2.02 billion pounds, up 3.7 percent.
Skim milk powders - 698 million pounds, up 0.4 percent.

Whey products (2021 United States production, comparisons in percentage with 2020)
Dry whey, total - 934 million pounds, down 2.6 percent.
Lactose, human and animal - 1.15 billion pounds, up 2.8 percent.
Whey protein concentrate, total - 509 million pounds, up 6.5 percent.

Frozen products (2021 United States production, comparisons in percentage with 2020)
Ice cream, Regular (total) - 872 million gallons, down 4.8 percent.
Ice cream, Lowfat (total) - 461 million gallons, down 0.5 percent.
Sherbet (total) - 40.6 million gallons, up 10.2 percent.
Frozen Yogurt (total) - 46.4 million gallons, up 32.2 percent.



U.S. Trade Representative Remarks on EU GI Abuses in Special 301 Report  

The Consortium for Common Food Names (CCFN), U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) today welcomed the U.S. Trade Representative’s prioritization in this year’s Special 301 Report of the importance of preserving U.S. food and beverage producers’ market access rights in the face of persistent efforts by the European Union (EU) to misuse geographical indications (GIs) and create non-tariff barriers to trade in markets around the world. The report follows detailed comments on the global scale of various common name threats submitted in January by CCFN and supported by USDEC and NMPF.

This annual report outlines global challenges on intellectual property issues and describes in detail the European Union’s (EU) campaign to eliminate competition by restricting the use of common food and beverage terms, such as “parmesan,” “bologna” and “chateau.” The EU’s strategy, active in numerous countries around the world, erects unfair barriers to trade that negatively impact non-EU exporters relying on common food names, as illustrated by USTR’s report which noted, “As part of its trade agreement negotiations, the EU pressures trading partners to prevent any producer, except from those in certain EU regions, from using certain product names, such as fontina, gorgonzola, parmesan, asiago, or feta. This is despite the fact that these terms are the common names for products produced in countries around the world.”

“We whole-heartedly agree with USTR about the harm imposed by the EU’s deliberate restriction of generic food and beverage terms in markets around the world,” said Jaime Castaneda, executive director of CCFN. “USTR’s Special 301 report should serve as a foundation upon which the administration can build a more proactive and focused global campaign of its own to counteract the EU’s long running efforts. U.S. farmers and food producers, and others around the world, deserve the chance to compete fairly in export markets.”

“The U.S. government has accurately diagnosed the EU’s deliberate global strategy of cloaking nontariff trade barriers as ‘GIs’ so that it doesn’t have to compete head-to-head in common product categories with U.S. food producers,” said Jim Mulhern, president and CEO of NMPF. “By deploying all of the tools at its disposal, including use of existing U.S. FTAs, the upcoming IPEF talks and TIFAs, the administration can take strong action to establish concrete market access protections with our trading partners around the world. The time for this is now and we stand ready to support those proactive efforts on behalf of American farmers.”

“Because we export the equivalent of 17% of U.S. milk production, trade barriers like bans on the use of common cheese names have profound consequences for the entire American dairy industry, from the many small and medium-sized family-owned companies to farmer-owned cooperatives and the workers employed there,” said Krysta Harden, president and CEO of USDEC. “U.S. dairy farmers and cheesemakers only want a fair shot at sharing their high-quality, sustainably produced products with consumers around the globe. By doubling down on combating global restrictions on the sale of common name products, USTR can defend opportunities for American-made products internationally and the jobs they support here at home.”



Proposed SEC Rule Could Reach Nearly Every Farmer and Rancher

The American Farm Bureau Federation joined 119 other agriculture organizations in sending a letter to the Securities and Exchange Commission (SEC) asking for an extension of time to comment on its proposed rule, “The Enhancement and Standardization of Climate Related Disclosures for Investors.”

The SEC - whose primary purpose is to protect investors, maintain efficient markets and facilitate capital formation - now wants to require public companies to report data about their entire supply chain. Nearly every farmer’s and rancher’s products eventually touch a publicly traded company, meaning that farmers and ranchers could be forced to report personal information and business-related data. This unprecedented overreach could create onerous reporting requirements for even small farms and ranches with few or no employees.

“This appears to be an example of overreach by the Securities and Exchange Commission,” said AFBF President Zippy Duvall. “Farmers and ranchers are already heavily regulated by multiple agencies at the local, state and the federal level. New SEC reporting requirements will no doubt make an already complicated patchwork of regulations even more cumbersome.

“Farmers and ranchers are focused on growing the food, fuel and fiber this country needs, and have never been subjected to SEC regulations. Unlike the large corporations currently regulated by the SEC, family farms and ranches don’t have teams of compliance officers. We urge the SEC to extend the comment period to allow those in agriculture time to understand the full impact of this proposal and offer meaningful input.”

The proposed rule is 510 pages long with 1,068 technical footnotes and almost 750 direct questions, but the SEC has only allowed 39 days for review.

The proposed rule “may create multiple, new sources of substantial costs and liabilities,” the letter states. “These include almost certain reporting obligations, technical challenges, significant financial and operational disruption and the risk of financially crippling legal liabilities.”



Rising Retail Prices Will Increasingly Test Consumers’ Appetite for Meat

U.S. consumer demand for retail meat remains exceptionally strong despite higher prices stemming from increased production costs and supply chain limitations. However, once the full effects of producer price inflation finally hit retail meat cases, consumer demand for meat will be tested again, according to a new report from CoBank’s Knowledge Exchange.

“Retail meat prices will remain elevated throughout 2022,” said Brian Earnest, lead animal protein economist with CoBank. “The sharply higher costs for feed, energy and labor have yet to fully impact wholesale and retail meat prices, but that will soon change. And as consumers notice their dollar is not going as far as it used to, they may trade down at the meat case, with chicken being the primary beneficiary.”

With combined cutout values of beef, pork and chicken climbing 22% year-over-year for the first quarter of 2022, consumers are all but certain to see higher prices in the meat case.

Beef consumption has not yet declined in the face of higher prices. But as overall inflation takes a bite of consumers’ purchasing power, we may finally see a significant change in their willingness to pay for red meat, added Earnest. If that turns out to be the case, the U.S. broiler industry may yet again be well positioned for modest growth and strong margins.

Shifting consumer purchasing patterns and market uncertainties stemming from the pandemic have been the primary drivers of higher and more volatile meat prices. But supply challenges have also played a role. The temporary closure of beef and pork plants in 2020 led to backups in fed cattle supplies that still linger today.

The nation’s beef cattle inventory remains in decline, due in part to the ongoing drought conditions in the Western U.S. and modest feeder calf prices. The combined cow and replacement heifer inventory has dropped by 12% since 2017. Likewise, the nation’s sow herd is contracting and is down nearly 6% over the past three years, primarily due to losses sustained in 2018-19. USDA is forecasting a 2% decline in U.S. beef and pork production in 2022.

Price volatility across the animal protein sector has become a daily headache for procurement teams to manage. While prices started 2022 in post-holiday doldrums, wholesale values were still elevated compared with pre-pandemic levels. Volatility in wholesale markets remains an obstacle for promotional planning.

Increased volatility in spot markets and supply instability handcuffed retail marketing of proteins during the 2020 grilling season. Featuring activity rebounded substantially in 2021 as grocers sought to hold onto the sales they gained during the pandemic. For retailers in 2022, a flight to safety from higher meat prices may be to feature value items like ground beef, hot dogs and sausage items.

As grilling season enters full swing, it is likely that retail meat departments’ focus will shift to profit margin over volume sales this year, meaning we will see increased creativity in the meat case. Rather than vying for consumer dollars through aggressive price points, “no price” features will be an attractive solution.



Biden Administration Announces Hundreds of Millions of Dollars in Global Food Aid to Respond to Putin’s Unprovoked Invasion of Ukraine

Today, the Biden Administration announced that the U.S. Department of Agriculture (USDA) and the U.S. Agency for International Development (USAID) are taking the extraordinary step to draw down the full balance of the Bill Emerson Humanitarian Trust (BEHT) as part of an effort to provide $670 million in food assistance to countries in need as a result of Putin’s unprovoked invasion of Ukraine. The world is suffering from historic levels of global food insecurity, which is being exacerbated by the impact Russia's war on Ukraine is having on global food supplies. Available estimates suggest an additional 40 million people could be pushed into poverty and food security as a result of Russia’s aggression.

USAID will use the BEHT’s $282 million to procure U.S. food commodities to bolster existing emergency food operations in six countries facing severe food insecurity: Ethiopia, Kenya, Somalia, Sudan, South Sudan, and Yemen. USDA will provide $388 million in additional funding through the Commodity Credit Corporation (CCC) to cover ocean freight transportation, inland transport, internal transport, shipping and handling, and other associated costs.

“Russia’s unprovoked war on Ukraine, a fellow major agricultural export country, is driving food and energy costs higher for people around the world,” said Secretary of Agriculture Tom Vilsack. “America’s farmers, ranchers and producers are uniquely positioned through their productivity, and through the Bill Emerson Humanitarian Trust, to help directly feed those around the world impacted by these challenges.”

“In Ukraine, which provides 10 percent of the world's wheat, farmers are struggling to plant and harvest their crops for fear of shelling and Russian landmines, and their path to exporting these vital commodities is severely restricted by Russia’s invasion, which caused the closure of Ukraine's ports,” said USAID Administrator Samantha Power. “Putin's decision to wage a senseless and brutal war against a peaceful neighbor is leading to a staggering global food crisis. Today's drawdown of the Bill Emerson Humanitarian Trust will help us respond to the unprecedented needs in countries around the world that are facing historic food insecurity.”

The BEHT is a special authority that was renamed for U.S. Congressman Bill Emerson in 1998 and reauthorized in the Agriculture Improvement Act of 2018, also known as the Farm Bill, that enables USAID’s Bureau for Humanitarian Assistance (BHA) to respond to unanticipated food crises abroad when other resources are not available. The U.S. Secretary of Agriculture will authorize the release of funds from the BEHT to provide emergency food assistance if the USAID Administrator determines that funds available for emergency needs under title II of the Food for Peace Act for a fiscal year are insufficient to meet emergency needs during the fiscal year.

This is the first time since 2014 that the U.S. government has used this emergency funding authority.

USDA and USAID are committed to working closely to leverage all available resources to mitigate the worst impacts of this food security crisis.



Wheat Industry Applauds USDA Food Aid Support

The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) applaud the Biden Administration’s announcement today stating the U.S. Department of Agriculture (USDA) and the U.S. Agency for International Development (USAID) is providing $670 million in food assistance to countries in need. Specifically, this announcement will utilize the $282 million in the Bill Emerson Humanitarian Trust (BEHT) and USDA will provide an additional $388 million through the Commodity Credit Corporation to help cover the transportation costs.

The funding will be spent on purchasing domestic wheat and other commodities as part of a food aid package to help feed people in countries experiencing food insecurity. The funding will also be used to cover the costs of transporting the commodities to their destination.

"Today's action is an important step in helping get assistance to countries facing food insecurity, which has been exacerbated by Russia's invasion of Ukraine" NAWG CEO, Chandler Goule stated. "Ukraine is a significant wheat exporting country, and Russia's aggression has caused considerable market and global supply chain disruptions. Unlocking the Bill Emerson Humanitarian Trust will play a crucial role in helping address the urgent humanitarian needs resulting from this conflict."

“It is so sad to think of more people being pushed into food insecurity around the world, but that is happening,” said Mike Schulte, executive director of the Oklahoma Wheat Commission and chair of the USW and NAWG Food Aid Working Group. “Wheat has long been the most often donated commodity for food aid programs and wheat growers are ready again in this crisis to help ease the hunger.”

NAWG and USW will continue to work with USDA on ways the industry can support the food aid programs, while advocating for policies that benefit and enable U.S. farmers to continue growing wheat.



 ADM Reports First Quarter Earnings per Share of $1.86, $1.90 on an Adjusted Basis

ADM today reported financial results for the quarter ended March 31, 2022.

“I’m very proud of how our team lived our culture and fulfilled our purpose over the last quarter, as they continued to serve the world’s need for nutrition in a dynamic global environment,” said Chairman and CEO Juan Luciano. “Our first quarter financial results, including adjusted earnings per share of $1.90, reflect an extension and amplification of the factors that drove our 2021 performance: great execution by our team, including exceptional growth in Nutrition and effective risk management; a tighter supply environment, especially with the smaller South American crop; and robust and resilient demand. Importantly, I’m also very appreciative of how our company has rallied to support our colleagues in Ukraine and the country’s agriculture industry.

“Looking forward, we expect reduced crop supplies — caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region — to drive continued tightness in global grain markets for the next few years. Longer term, markets continue to reflect the importance of the enduring global trends that are fueling performance across our portfolio by driving demand for our products. And within ADM, our productivity and innovation efforts are continuing to help us deliver on the evolving needs of our customers. Considering these factors, we expect 2022 results to exceed 2021's.”

Quarterly Results of Operations
Ag Services & Oilseeds delivered substantially higher year-over-year results, effectively managing risk and executing exceptionally well in a dynamic environment of robust global demand and tight supply, driven primarily by the short South American crop, to deliver substantially higher year-over-year results.

    Ag Services results were significantly higher versus the first quarter of 2021. Global Trade results were higher, driven by strong performances in destination marketing and global ocean freight. North American origination margins and volumes were lower year over year, including approximately $75 million in negative timing effects, which will reverse in the coming quarters.

    Crushing was higher year over year in a strong global margin environment driven by robust protein and vegetable oil demand. Improving margins in the quarter resulted in approximately $60 million in negative timing effects — which will reverse in the coming quarters — versus approximately $50 million in positive timing in the prior-year quarter.

    Refined Products and Other results were much higher than the prior-year period, driven by healthy refining premiums and good refined oils demand in North America, as well as strong biodiesel margins in EMEA.

    Equity earnings from Wilmar were significantly higher versus the first quarter of 2021.

Carbohydrate Solutions delivered results that were substantially higher year over year.
    The Starches and Sweeteners subsegment, including ethanol production from our wet mills, delivered much higher results versus the prior-year quarter, driven by higher corn co-product revenues and improved citric acid profits in North America; higher volumes and margins in EMEA; and higher volumes and margins in wheat milling. Sales volumes for starches and sweeteners continued their recovery.

    Vantage Corn Processors delivered solid execution margins, but position losses on ethanol inventory as prices fell early in the quarter drove lower results versus the prior year. The prior-year quarter’s results also benefited from demand for USP-grade industrial alcohol from the Peoria facility, which was divested in Q4 2021.

Nutrition delivered extremely strong revenue growth of 23% and maintained healthy margins, driving substantially higher results.
    Human Nutrition delivered higher year-over-year results. Flavors continued to deliver solid revenue growth, offset by some higher costs. Strong sales growth in alternative proteins, including accretion from our Sojaprotein acquisition, and positive currency timing impacts in South America, offset some higher operating costs to help deliver better year-over-year results in Specialty Ingredients. Health & Wellness was also higher year over year, powered by probiotics, including contributions from our late-2021 Deerland Probiotics acquisition, and robust demand for fiber.

    Animal Nutrition profits were nearly double the year-ago period, due primarily to strength in amino acids, which was driven by a combination of product mix changes, improved North American demand and global supply chain disruptions.

Other Business results were substantially higher, driven primarily by better performance in captive insurance, including reduced claim settlements versus the prior year.



Valent USA Submits Registration for New Rapidcil Herbicide

Valent U.S.A. submitted applications for the registration of a new herbicide active ingredient Rapidicil (epyrifenacil) to the U.S. Environmental Protection Agency (EPA) and Canada's Pest Management Regulatory Agency (PMRA). Rapidicil, the trademark name for epyrifenacil, was developed by Valent's parent company, Sumitomo Chemical Co., Ltd.

Rapidicil is a novel herbicide that is part of a pipeline of products to be submitted for registration in major markets within the next three years. It belongs to a class of compounds known as protoporphyrinogen oxidase (PPO) inhibitors and may be used to control broadleaf weeds and grasses.

"We are very excited to advance what will be an important new weed control tool for growers in North America," said Joe Short, Herbicide Strategy Manager, Valent U.S.A. "Once approved, Rapidicil will provide growers a new herbicide with highly effective performance against a wide-range of broadleaf weeds and grasses in foliar applications."

Field research has demonstrated that Rapidicil is a fast-acting herbicide that can be used for weed control in various crops including corn and soybeans. Rapidicil is also environmentally friendly, contributing to sustainable agriculture as it provides weed control before planting crops in no-till and reduced tillage systems, which can suppress carbon dioxide emissions as compared to conventional tillage practices.

In addition, Rapidicil is part of a global collaboration between Sumitomo Chemical and Bayer through which it may be used after planting for post-emergence control of tough weeds like Palmer amaranth and waterhemp in PPO-inhibitor tolerant crops currently in development by Bayer. Integrating both the knowledge of both companies, this collaboration will provide agricultural producers with effective next-generation solutions to meet their weed control challenges.



Elanco and Royal DSM Announce U.S. Alliance for Methane-Reducing Feed Additive for Cattle

Elanco Animal Health Incorporated (ELAN: NYSE) and Royal DSM have created a strategic alliance connecting two leading, sustainability-focused companies to address one of society's most significant opportunities of the decade, mitigating climate change by reducing greenhouse gas emissions from farming. Elanco has secured the exclusive U.S. licensing rights to develop, manufacture and commercialize Bovaer® for beef and dairy cattle.

Bovaer® is a first-in-class and best-in-class methane-reducing innovative feed additive for beef and dairy cattle, already available in Europe, Brazil, Chile and Australia. More than 50 peer-reviewed studies and 48 on-farm trials in 14 countries show Bovaer® consistently reduces enteric methane emissions by approximately 30% for dairy cows and even higher percentages for beef cattle.

DSM and Elanco intend to provide farmers, dairy and beef companies, and retailers with a solution to substantially lower the carbon footprint of beef and dairy production, supporting the animal protein industry's ESG efforts and helping secure a sustainable future for the planet. The methane reduction from feeding a million cows Bovaer® is equivalent to planting 45 million trees or removing 300,000 cars from the road. With 9 million dairy cows and 14 million beef cattle on feed in the U.S. alone, the product would contribute to a significant and immediate reduction of the environmental footprint of meat and dairy products, supporting the Global Methane Pledge to cut emissions 30% by 2030.

The strategic alliance is expected to enable both parties to maximize the opportunity for the product in the U.S. market, once approved, while also nearly doubling previously announced Bovaer® production capacity globally. Elanco will be responsible for the U.S. approval process, commercialization strategy and product supply, supporting DSM supply in markets outside the U.S. Elanco will assess and evaluate the regulatory submission and manufacturing options with the intent to bring Bovaer® to the U.S. market as quickly as possible. Already the State of Indiana, for example, has indicated its support for expanded manufacturing investment in the state as it continues to build public-private partnerships supporting the state's growing agriculture economy.

"We are excited to partner with DSM to start the process of bringing this game-changing innovation to U.S. livestock producers," said Jeff Simmons, president and CEO of Elanco. "It will further strengthen Elanco's efforts to create the livestock sustainability market and the next era of value for farmers by adding to our efforts to reduce, measure and monetize emission reductions, including Experior™, Uplook™ and Athian. We are eager to work with regulators to bring a unique innovation like DSM's Bovaer® to the U.S. market as quickly as possible to support farmers and positively impact the climate crisis."

Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of Royal DSM, commented: "This agreement marks an important milestone for DSM, Elanco, and the climate change mitigation efforts of the U.S. We believe Elanco, as a company that shares our determination to revolutionize the sustainability of the cattle industry, is the ideal partner to help us increase and accelerate the total impact of our game-changing feed additive by bringing us closer to customers across the U.S. This alliance will help us realize Bovaer®'s potential as a powerful solution with a significantly positive impact on the planet. In addition, and fully aligned with our purpose-led performance-driven strategy, the alliance enables us as DSM to monetize our long-term innovation faster."

With an estimated global market opportunity for livestock methane reduction of $1 billion to $2 billion, Elanco expects Bovaer® to have blockbuster annual revenue potential in excess of US$200 million in the U.S. market with initial contribution by mid-decade. This alliance is not expected to impact Elanco's previously stated financial commitments.