Wednesday July 13 Ag News

 When Drought-stressed Pastures Look Dormant in July
Karla Wilke, Professor, UNL Department of Animal Science

As the drought that has plagued the western U.S. since 2020 hangs on, much of Nebraska is currently experiencing moderate to severe drought. July tends to be a busy time for production cows, resulting in high nutrient demands, which further exacerbates the limitations of drought-stricken grass.

Lactating cows grazing limited forage resources may struggle to select a diet that will also support rebreeding. Cows calving in April and May must be bred in July and August. When rainfall is adequate and proper stocking density is used, the grass in July and August is typically adequate to support the needs of the lactating and cycling cow. However, in a severe drought, such as this year, not only is there risk of overgrazing and damaging the pastures, there is also a risk of having a high percentage of open cows when cows are checked in the fall.

Options for Supplementing Pairs on Pasture
Supplementing on pasture can help stretch the grass and increase the nutrient content of the diet, but must be done with caution. Supplementing a small amount (2-3 lb/pair) of distillers grains will not decrease forage intake, and may actually improve utilization and therefore increase low-quality forage intake. Pairs would likely have to be supplemented 0.6% BW (dry matter basis (DM)) to have forage replacement value. While this can replace some forage intake, it is likely only going to be 10-12%.

University of Nebraska research has shown mixing roughage and wet distillers can provide a higher rate of forage replacement than distillers alone. When wet distillers grains and ground wheat straw were mixed at a ratio of 30:70, respectively (DM), the forage replacement value was almost 1:1 DM. When blends of 50:50 were used, or hay rather than residue was used, less forage replacement was achieved. Overall, the average forage replacement was 44%. This method of forage replacement can stretch the time cows are out on the pasture, but because forage replacement is less than 100%, can still result in overgrazing. Producers will want to monitor pastures closely for signs of overgrazing.

Feeding on Pasture instead of in Confinement
Although feeding in confinement might be simpler for some producers — there are several reasons or time points — producers may prefer to feed almost a complete diet on pasture. Some producers may not be set up for confinement feeding that will allow a small calf access to bunks and water, or that can even keep a small calf confined. Therefore, feeding on pasture where pasture bunks can be accessed from both sides, or the diet can be fed on the ground, may be a better option.

During a drought, early weaning is often employed to reduce forage intake on a pasture. However, weaning calves younger than 90 days of age can be labor intensive if calves are retained, and less popular with a buyer than an older calf. An April-born calf is only 60 days old in July and, therefore, for some producers, feeding pairs on the pasture may be the best option until the calf is 90-120 days of age. This also reduces the risk of pathogen loads for the very young calf and gives them an opportunity to graze some forage as well.

Points to Ponder
Late spring calving cows are in the breeding season now with a bad combination of high nutritional demands and drought-stricken pastures in many locations. For producers who have access to wet distillers grains and crop residues, feeding on pasture may be an option to stretch pastures, improve body condition on cows through the breeding season, increase options for calves, and delay confinement feeding. However, the cost of feed needs to be evaluated against the value of herd reduction, especially when commodity prices and delivery costs are high.



Nebraska Soybean Management Field Days set for Aug. 9-12

The 2022 Soybean Management Field Days will be held Aug. 9-12.  This year’s field days feature more demonstration-based presentations and added opportunities for interactive discussion.  Growers will also have opportunities to get questions answered.  

The field days bring research-based information to growers to improve soybean profitability. Local to global issues that are important to farmers will be addressed. Attendees will learn about the various Nebraska Soybean Board checkoff dollar research, marketing and education efforts.

Brought to you by the Nebraska Soybean Board and Nebraska Extension, the field days begin with 9 a.m. registration and conclude at 2:30 p.m. Free registration is available the day of the event.  

The event consists of four stops across the state, each with demonstration plots, lunch and time for questions.  Dates and locations are:
    Aug. 9 – Blue Hill, NE – Toepfer Farms
    Aug. 10 – Central City, NE – Greg Greving Farm
    Aug. 11 – Brownville, NE – Daryl Obermeyer Farm
    Aug. 12 – Decatur, NE – Method Farms

University specialists, educators and industry consultants will cover:
    Soybean Disease Management
    Irrigation Management (Blue Hill, Central City, Decatur)
    Cover Crops (Brownville)
    Weed Management
    Ag Economics
    Precision Ag
    Biodiesel & Renewable Diesel: Fuels from the Farm

“Nebraska Soybean Board looks forward to another road trip across Nebraska to provide helpful information and demonstrations to our producers to utilize on their farms. It’s an excellent way to provide unbiased research that hopefully impacts their bottom line,” says Scott Ritzman, Nebraska Soybean Board Executive Director.    

University of Nebraska-Lincoln agronomists, plant disease experts, and insect specialists will be available to address questions. Participants can bring unknown crop problems for complimentary identification.  

According to Nebraska Extension Educator, Aaron Nygren, “This is an excellent opportunity to gather and discuss soybean production practices that are important to your operation with other farmers and University of Nebraska specialists and educators.”

For more information about the field days and maps to sites, visit enrec.unl.edu/soydays, or contact the Nebraska Soybean Board at (402) 441-3240 or Nebraska Extension at (402) 624-8030.



Scholarship Aims to Help Non-Traditional Students in Rural Nebraska

From EMT training to a nursing degree and other college credits, non-traditional students are getting the much-needed support to obtain their educational goals with the Nebraska Rural Radio Foundation Scholarship in Honor of Max & Eric Brown.

“Vibrant rural communities are critical to the success of agriculture and all of Nebraska. This scholarship supports individuals who are committed to making a difference in rural Nebraska,” said Megahn Schafer, executive director at the Nebraska Farm Bureau Foundation.

The Nebraska Farm Bureau Foundation is accepting applications for the 2023 scholarships and will award up to $2,500 to non-traditional students, age 25 or older, living in Nebraska’s rural communities. Applicants must be pursuing an education in Nebraska including, but not limited to, community college, technical school, or training programs.

Past winners have demonstrated their commitment to the future of agriculture and rural towns. Past recipients serve their communities as educators, EMTs, nurses, and more, while contributing to their farm and ranch operations.

“No matter the field of study, we are looking for applicants who will contribute to a higher quality of life in their communities, and we know there are so many qualified candidates out there. What is great about this scholarship is that it is so flexible and can support many kinds of education and training. We urge people to spread the word about this scholarship and encourage people to apply,” said Schafer.

Max and Eric Brown spent their careers serving rural Nebraska, and this generous scholarship promotes their vision of continued success across the heart of our great state.

Applications are due August 1. More information and the online application can be found at https://nefbfoundation.org/scholarships/.



Upcoming Webinars Presented by the UNL Center for Agricultural Profitability

Dust Off Your Checkbook Register
With: Jessica Groskopf, Extension Agricultural Economist, UNL Center for Agricultural Profitability
Time: Jul 21, 2022 12:00 PM
Although many of us carry a checkbook register, we probably are not maintaining it properly. Simple steps can improve the usefulness of this everyday tool. This webinar will review best management practices for keeping your check register up to date.

So You Want to Direct Market Your Meat to Consumers? Now What?
With: Gary Sullivan, Associate Professor, Meat Processing, UNL Animal Science; Charlie Emswiler, Wahoo Locker, Wahoo, Neb.; & Mariel Barreras, Barreras Family Farm LLC
Time: Jul 28, 2022 12:00 PM

Over the last several years there has been a growing interest in selling livestock products direct to consumers. This webinar will provide a practical “how to” from three unique perspectives: a producer, a processor, and industry expert. Each will go over tips, tools, and strategies to be successful and pitfalls to avoid. Whether you are considering to sell livestock products to consumers or are a seasoned marketer, this webinar I for you.

Register and get more information at https://cap.unl.edu/webinars.  



Husker Harvest Days... Together for Three Days of Pure Ag

The time has come for the world’s largest totally irrigated working farm show to open its gates. Husker Harvest Days is an opportunity for producers to meet face-to-face with agriculture’s industry leaders and to see the latest equipment, products, and services. The event will be held September 13 – 15, 2022 in Grand Island, Nebraska.  

“Husker Harvest Days combines the best elements of community and technology, giving visitors an incredible opportunity to network and gain insights for their farms,” said Don Tourte, senior vice president of sales and events with Farm Progress. “Farmers and ranchers come each year to share their farming legacy while getting up close and personal with the latest innovations to help push their operations to further success.”

The irrigation-focused show is renowned for its ability to connect the agricultural community to ideas and inspiration for their operations. Featuring equipment demonstrations and valuable seminars, the show seeks to help producers move towards greater productivity and profitability. Some highlights of this year’s show include:

Field Demonstrations
Field demonstrations are an integral part of Husker Harvest Days and are held each day, weather permitting. Demonstrations planned for this year include corn combining, tillage, irrigation, haying, autonomy, UAVs (drones) and self-propelled sprayers and mowing.

UAV Demonstrations
UAV (drone) demonstrations will help visitors see the uses and benefits of checking their cattle operation or crops and the more sophisticated components that can be paired with UAVs, including spray attachments. Numerous UAV manufacturers and marketers will be demonstrating and explaining their drones and capabilities throughout each day of the show.

Irrigation Spotlight
The show is known as "The world’s largest totally irrigated working farm show," and for good reason. In addition to the state-of-the-art irrigation demonstrations, the nation's largest irrigation companies, equipment manufacturers, and product distributors are key exhibitors at the show.

Plan to attend
Husker Harvest Days is located west of Grand Island, 1-1/2 miles north and 2 miles west of Alda in central Nebraska on Husker Highway. Admission is $15 for adults, $8 for ages 13-17, and ages 12 and under are free. Those purchasing advance tickets online receive a discount of $5 per adult ticket. For additional information, visit www.HuskerHarvestDays.com.



NEW STUDY EMPHASIZES PROPOSED BEEF-PROCESSING FACILITY’S ECONOMIC IMPACT IN “KEEPING THE MONEY IN IOWA”

Iowa farmers are currently transporting approximately 1 million head of cattle out of state each year, causing the state to miss out on significant opportunities for more jobs, income, economic activity and tax revenues that can be achieved by the construction of additional in-state beef-processing capacity, a new study indicates.

“Iowa pays a heavy price directly tied to its insufficient number of beef-processing facilities. Those costs are borne by virtually everyone in the state of Iowa, directly or indirectly, but farmers and rural communities pay a heavy toll,” said Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University. “The addition of the planned Cattlemen’s Heritage facility in southwest Iowa means 400,000 head of cattle will remain in Iowa for harvesting and processing, generating an economic gain between now and 2028 of $8 billion.”

The report, titled “Keeping the Money in Iowa” and prepared for the Cattlemen’s Heritage Beef Co., said its proposed 1,500-head-per day beef-processing facility in Mills County, will benefit Iowa cattle producers with higher livestock prices, provide more jobs and higher wages for workers, create higher local and state taxes, spur rural economic development, and stimulate higher revenues in industries ranging from banking, real estate and construction to healthcare, retail and professional services.

Goss said when operational, the Cattlemen’s Heritage facility, in comparison with the average Iowa animal harvesting and processing firm, "will employ approximately 3.9 times the number of workers and have a worker wage 23.4% greater than the average payroll.” Goss and his research team estimated the project’s total construction output at $927.6 million and the output of total operations at $7.2 billion between 2022 and 2028 for a combined total economic impact of $8 billion, wages and salaries equaling $1 billion, self-employment income topping $564 million and an annual average of 4,625 jobs.

“We calculate the plant construction output of $445.6 million will be accompanied by a $482 million output of barn construction, principally in western Iowa, to ensure an adequate supply of cattle,” Goss said. “Combined wages from those two areas will exceed $312 million and related self-employment income will approach $44 million. Annual employment should average 1,363 jobs.”

Plant operations between 2024 and 2028 are estimated to yield $7.2 billion in sales, $760.2 million in wages and salaries, $521.1 million in self-employment income and an average annual workforce boost of 5,112 jobs. The study projects $161.8 million in total state and local tax collections between 2022 and 2028, including $52.3 million in sales taxes, $50.3 million in property taxes, $35.2 million in individual income taxes, $17.3 million in other taxes and fees and $6.7 million in corporate taxes.



2022 Honorary Angus Foundation inductees announced

The National Junior Angus Association (NJAA) provides countless youth development opportunities for the next generation thanks to generous Angus donors. Ted and Mary Greiman (Garner, Iowa) and Trans Ova Genetics (Sioux City, Iowa) have been continual supporters that have undoubtedly contributed to the success of the junior membership. To recognize their outstanding support, Ted and Mary Greiman and Trans Ova Genetics were awarded as the 2022 inductees into the Honorary Angus Foundation.

As fifth-generation Angus breeders, Ted and Mary are familiar faces of the Angus family. Through raising their own children in the NJAA, Ted and Mary recognize the value of supporting junior programs.

“It’s really special to watch these kids grow up and be leaders of our industry,” Mary said. “It’s great to be able to provide support for leadership conferences and activities to grow our juniors’ skills and foster their passion for the breed.”

Among many contributions, the Greimans are supporters of the Angus Foundation Golf Tournament and junior programs such as the Leaders Engaged in Angus Development conference.

“It’s the Angus cow that brought us all together,” Ted said. “We have a like mind set of love and passion for the breed. It is wonderful and lifelong, and we want that tradition to continue.”

Ted and Mary have served the American Angus Association® in various capacities over the years. Among many leadership roles, Mary is a current member of the Iowa Angus Auxiliary board of directors, previously served as president of the American Angus Auxiliary and served six years as the National Junior Angus Board advisor. Ted currently serves on the Iowa Angus Association board of directors.

“Ted and Mary have been incredible servants to our youth and breed,” said Mark McCully, chief executive officer of the American Angus Association®. “Their dedication to the Foundation is inspiring.”

Trans Ova Genetics has supported the Angus community for more than twenty years. The success of both the National Junior Angus Show and Angus Foundation Heifer Package is in great part due to the contributions of Trans Ova Genetics. With a focus on supporting youth programs and furthering education and research, Trans Ova Genetics embodies the same values the Angus Foundation advocates for.

“We believe in the power of the next generation of youth leaders just like we believe in the next generation of cattle,” said Emily Warnimont, director of industry relations at Trans Ova Genetics. “Any way we can give back and support organizations like the Angus Foundation is what we want to support and be a part of.”

Trans Ova Genetics has been a source for innovative reproductive services and technology for more than four decades. Their commitment to furthering the future of genetics is parallel to their support for Angus youth.

“Trans Ova Genetics is a leader in our industry,” McCully said. “And their long-term support of the Foundation reflects their unwavering commitment to our next generation.”

Junior members continue to grow and find great success thanks to generous donors like Ted and Mary Greiman and Trans Ova Genetics.



Beef Center to Offer BRaNDS Workshop for Cattle Producers

The Iowa Beef Center at Iowa State University has scheduled two workshops in August to introduce producers to software that can help track breeding and feedlot information.

The Beef Ration and Nutrition Decisions Software is designed to assist in the formulation of rations for beef cattle. Known as BRaNDS, this software has standard and professional versions, state-specific versions, and editions for beef cow, breeding bull and feedlot operations. BRaNDS users often have questions on information to use, reports that can be run, data to save and transfer, and more.

Garland Dahlke, research scientist with the Iowa Beef Center at Iowa State University, and Iowa State University Extension and Outreach beef specialist Chris Clark will present information and offer suggestions during these “Applied Ration Balancing, Tips, Techniques and Formulation using BRaNDS” sessions.

 “This is an applied ruminant nutrition program dealing with details and background of correct ration formulation, using BRaNDS with cattle examples to assist in accomplishing it,” Dahlke said. “These concepts apply to sheep and goats, so the sessions aren’t limited to cattle producers.”

The workshops are set for Friday, Aug. 12, and Thursday, Aug. 18, from 1:30-3:30 p.m. at the Hansen Agriculture Student Learning Center in Ames. Afterward, there will be time to deal with specific issues and troubleshooting for individual attendees. See the program flyer.

“Although we encourage people to bring their own computers so everything they learn will stay right on the computer to go home with them, we will have a set of ISU computers available for anyone to use,” Dahlke said.

Clark said while the focus will be on the latest version of BRaNDS, those who bring their own computer with earlier versions are welcome to attend, as are those who don’t yet have the software.

“If someone hasn’t purchased the software, we can set them up on an ISU computer to show them what it can do,” he said. “Overall, it’s definitely a good way for those with or without BRaNDS to learn more about it and become more comfortable using it.”

There is no cost; however, attendees are asked to preregister by calling Dahlke at 515-294-9910 or emailing him at garland@iastate.edu.



USDA WASDE - July 12, 2022 - LIVESTOCK, POULTRY, AND DAIRY

The forecast for 2022 red meat and poultry production is lowered slightly from last month as lower pork and broiler is partly offset by higher beef and turkey forecasts. Pork production is lowered on a slower-than-expected pace of slaughter in June and lower expected second-half carcass weights. Broiler production is lowered on second quarter slaughter data but is partly offset by higher expected production in the third quarter. Beef production is raised for the second half with lower expected carcass weights and lower third-quarter slaughter more than offset by higher fourth-quarter slaughter. Turkey production is forecast higher based on hatchery data. Egg production is raised from last month based on recent production data.

For 2023, the red meat and poultry production forecast is raised. Pork production is raised based on 2022 second-half farrowing intentions reported in USDA’s Quarterly Hogs and Pigs report, and expectations that farrowings in the first half of 2023 will be modestly higher. The beef forecast is lowered slightly on lower expected carcass weights in early 2023. USDA’s Cattle report, scheduled for July 22, will provide an indication of producer intentions for heifer retention and the 2022 calf crop. Broiler, turkey, and egg forecasts are unchanged from last month.

Beef import forecasts for 2022 and 2023 are unchanged from last month while the export forecasts are raised for both years on firm international demand. Pork import forecasts are raised for both 2022 and 2023 on the current pace of trade and firm U.S. demand. Exports are reduced for 2022 but expected strength in foreign demand early in 2023 supports a slight increase in exports for that year. Broiler and turkey exports for 2022 are raised on recent data; no changes are made to 2023 forecasts.

Cattle price forecasts for 2022 are raised on reported second quarter prices and expected strength of packer demand in the third quarter; forecasts for 2023 prices are unchanged. The 2022 hog price forecast is raised on second-quarter prices, but no changes are made to second-half forecasts. For 2023, hog prices are lowered on the higher production forecast. The broiler price forecast for 2022 is lowered on current price data; no change is made to the 2023 broiler price forecast. Turkey price forecasts for 2022 and 2023 are raised on current prices and expectations of continued demand strength. The 2022 and 2023 egg price forecasts are raised on current price strength.

Milk production forecasts for 2022 and 2023 are lowered from last month due to slower expected growth in milk per cow. USDA’s Cattle report, to be released July 22, will provide a mid-year estimate of the dairy cow inventory and producer intentions regarding retention of heifers for dairy cow replacement.

Imports on a fat basis are raised for 2022 on stronger expected imports of butterfat containing products and several other dairy products, but imports on a skim solids-basis are unchanged. No changes are made to the 2023 import forecasts of fats and skim-solids. Exports on both a skim-solids and a fat basis are also raised for 2022, reflecting stronger expected exports of butter, cheese, whey, skim milk powder, and lactose. The forecast for 2023 fat-basis exports is unchanged from last month but is raised on a skim solids-basis with expectations of higher skim milk powder exports carrying into 2023.

The 2022 butter price forecast is raised from last month on firm demand, and the cheese price forecast is lowered on continued large stocks. The forecasts for nonfat dry milk (NDM) and whey prices are unchanged. With a lower cheese price, the Class III price is lowered while the Class IV price is raised due to higher butter prices. The all milk price for 2022 is lowered to $26.15 per cwt. For 2023, forecasts for cheese, butter, and NDM are raised on expected lower production, but the price forecast for whey is lowered on expected weaker international prices. With higher cheese, butter prices, and NDM prices, the Class III and Class IV price forecasts are raised. The 2023 all milk price forecast is raised to $24.15 per cwt.



NAMI, U.S. Chamber: Proposed Legislation Would Micromanage Beef Markets, Harm Consumers

 In Case You Missed It: The U.S. Chamber of Commerce, the world’s largest business organization, agreed with the North American Meat Institute and concluded beef market legislation before the House and Senate would “dramatically expand the federal government’s role and ultimately harm consumers,” in a post shared to their blog here.

The blog post was written by the U.S. Chamber’s Sean Heather, Senior Vice President, International Regulatory Affairs & Antitrust, and was published July 12, 2022.

The following is complete text:
    In the 1930s, in response to the Great Depression, Congress enacted laws like the National Industrial Recovery Act and the Agricultural Adjustment Act to micromanage various markets.  With the benefit of hindsight, it is easy to see that these bills ultimately harmed consumers by fixing prices and harmed producers by preventing markets from adjusting naturally.

    Why, then, is Congress again considering aggressive legislation to regulate beef markets?

    In a rush to address soaring meat prices and ensure that all parts of the supply chain benefit from those prices, several pending bills would dramatically expand the federal government’s role in meat markets. In particular, the Meat and Poultry Special Investigator Act would create a new office within the Department of Agriculture (USDA) to police competition. And the Cattle Price Discovery and Transparency Act, would give the USDA significant new authority to manage cattle sales around the country.

    Unfortunately, both bills would harm consumers and reduce competition. Specifically, the special investigator bill would create a duplicative office within USDA to combat anticompetitive conduct, which could slow law enforcement investigations and lead to more politicized enforcement decisions.  Instead of creating a new office, Congress should simply ensure that the existing law enforcement agencies have the necessary tools and resources to do their jobs.  

    Similarly, the cattle price bill would displace free market fundamentals with government-controlled pricing. In a nutshell, the bill would require cattle feeders to sell cattle to packers, and packers to buy from feeders a mandatory minimum of fed cattle on a cash, spot market. As a result, the bill would reduce the ability of all levels of the supply chain to negotiate freely through formula and contract sales, also known as alternative marketing arrangements—a system that has helped to increase consumer demand and improve beef quality by effectively transmitting market signals about consumers’ preferences to producers.

    In other words, the bill would replace a market structure that has evolved naturally over time with one created and managed by bureaucrats in Washington. When has that ever been a good idea?  Instead, Congress should let these post-COVID markets adjust naturally. Indeed, fed cattle prices reached a seven-year high earlier this year, benefitting suppliers up and down the chain, and these price signals ultimately will work to expand production and keep prices in check for consumers.

    Beyond their obvious flaws, these bills buy into the White House’s faulty narrative that beef markets are suffering from a lack of competition. In fact, total beef production reached record levels in 2020 and meat prices fell in the five years before the pandemic. Since 2007, the economy has become less concentrated; indeed, the four-firm concentration ratio in fed cattle beef packing has not changed meaningfully in more than 25 years.

    The USDA itself recognizes that, “[h]igh feed costs, increased demand, and changes in the supply chain have driven up prices for wholesale beef and dairy.” Former Treasury Secretary Lawrence Summers, a senior official in both the Clinton and Obama Administrations, has explained that macroeconomic trends are raising prices around the globe. Higher food prices are resulting from increased demand, COVID-related supply chain disruptions, and higher input costs, especially energy and labor.

    Rather than expand the government’s role in the economy, create new regulatory burdens, or hire  new, duplicative regulators, Congress should explore other avenues to encourage competition and lower prices for consumers. Sensible policies would reduce tariffs, raise supplies of fossil fuels, encourage people to return to work, and relax economic harming regulations. In the near century since the New Deal, we have learned that all of these tools, along with sensible monetary policy, help markets operate more effectively and efficiently, to the benefit of consumers and producers alike.



Urea Leads Fertilizer Prices Down Once Again

Most average retail fertilizer prices continued to be less expensive than last month during the first week of July 2022, according to fertilizer sellers surveyed by DTN. This lower trend has been in place for six weeks now. All but one of the eight major fertilizers were lower compared to last month, with only one fertilizer down substantially. DTN designates a significant move as anything 5% or more.

Urea was again 11% lower compared to last month. The nitrogen fertilizer had an average price of $866 per ton.

DAP had an average price of $1,038/ton, MAP $1,053/ton, 10-34-0 $904/ton, anhydrous $1,466/ton, UAN28 $609/ton and UAN28 $702/ton.

One fertilizer was just slightly more expensive compared to last month. Potash had an average price of $885/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.94/lb.N, anhydrous $0.89/lb.N, UAN28 $1.09/lb.N and UAN32 $1.10/lb.N.

On the retail level, most fertilizer prices continue to be considerably higher than one year earlier.  
MAP is 44% more expensive, 10-34-0 is 45% higher, DAP is 51% more expensive, urea is 58% higher, UAN28 is 64% more expensive, UAN32 is 67% higher, potash is 80% more expensive and anhydrous is 100% higher compared to last year.



Weekly Ethanol Production for 7/8/2022

According to EIA data analyzed by the Renewable Fuels Association for the week ending July 8, ethanol production scaled back for the fourth straight week with output contracting 3.7% to 1.005 million b/d, equivalent to 42.21 million gallons daily and the lowest volume in 8 weeks. Production was 3.5% less than the same week last year and 2.0% below the five-year average for the week. The four-week average ethanol production volume decreased 1.3% to 1.039 million b/d, equivalent to an annualized rate of 15.93 billion gallons (bg).

Ethanol stocks ticked up 0.5% to a five-week high of 23.6 million barrels. Stocks were 11.7% higher than a year ago and 8.3% above the five-year average. Inventories built across all regions except the East Coast (PADD 1) and Midwest (PADD 2).
                                                                                                              
The volume of gasoline supplied to the U.S. market, a measure of implied demand, dropped 14.4% to 8.06 million b/d (123.59 bg annualized), the lowest weekly volume since Jan. 7. Demand was 13.2% less than a year ago and the five-year average.

Refiner/blender net inputs of ethanol declined 1.9% to 887,000 b/d, equivalent to 13.60 bg annualized and an 11-week low. Net inputs were 3.2% less than a year ago and 1.0% below the five-year average. Still, net inputs of ethanol accounted for 11.0% of gasoline supplied, the highest share on record.

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



Clean Fuels Highlights Job Creation and Economic Benefits in Letter to President Biden

Today, Clean Fuels Alliance America wrote to President Joe Biden and other administration officials to highlight the biodiesel and renewable diesel industry’s contribution to job growth in the clean energy sector. The letter asks the administration to support tax policy that encourages continued investments, capacity expansion, and additional job creation.

"The clean fuels industry increased production during 2021, making an essential contribution to the nation’s fuel supply. Our industry plans to continue increasing production this year,” the letter states. “The domestic production of low-carbon biodiesel and renewable diesel provides good-paying jobs, adds value for America’s farmers, lowers prices at the pump by extending the energy supply, and reduces carbon emissions on average by 74% compared with petroleum diesel."

The recent United States Energy & Employment Report 2022 shows that the clean fuels industry added jobs in 2021 at a rate of 6.7% and anticipates continued job growth of 5.8% in manufacturing during 2022. Additionally, a recent study from the World Agricultural Economic and Environmental Service showing that U.S. biodiesel and renewable diesel production generated a 4 percent decrease in the price of diesel fuel in 2021 – a saving of $0.22 a gallon at current fuel prices.

Clean Fuels' Vice President of Federal Affairs Kurt Kovarik added, "America's biodiesel and renewable diesel producers and their partners in the agriculture sector are making investments to expand production and meet consumer demand for better, cleaner fuels. Our efforts are paying dividends today in emission reductions, savings at the pump, and new jobs and economic growth. We encourage the administration to continue its strong support for homegrown solutions to our economic and environmental challenges."



Bill Aims to Increase Security for U.S. Agriculture

A congresswoman has tabled a bill designed to increase security within the U.S. ag sector. Elisa Stefanik (R-NY 21st District) introduced the Promoting Agriculture Safeguards and Security (PASS) Act, which would prevent certain countries from purchasing U.S. ag companies.

“Persons who are acting on behalf of or otherwise directed by the government of a prohibited country may not carry out any merger, acquisition, or takeover that could result in foreign ownership of a United States agricultural company,” the bill says.

The four countries this rule would apply to are China, Russia, Iran and North Korea.

Preventing these countries from owning U.S. ag companies is a matter of national security, Stefanik said.

“The United States cannot allow malign ownership bids of American assets by China, Russia, Iran, and North Korea to undermine the efforts of our farmers, whose hard work feeds and fuels our communities,” she said in a statement. “Especially as we witness the devastating impact of a supply chain crisis, the United States cannot cede any ownership of our food supply to those who do not share our security interests.”

The bill would also add the secretary of agriculture as a standing member of the Committee on Foreign Investment in the United States and require the secretary to provide repots on the risk of foreign purchase of ag companies to the American ag sector.