Monday October 03 Harvest Progress + Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending October 2, 2022, there were 6.8 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 45% very short, 36% short, 19% adequate, and 0% surplus. Subsoil moisture supplies rated 51% very short, 33% short, 16% adequate, and 0% surplus.

Field Crops Report:
Corn condition rated 20% very poor, 21% poor, 24% fair, 29% good, and 6% excellent. Corn mature was 83%, equal to last year, and ahead of 78% for the five-year average. Harvested was 24%, near 20% last year, and ahead of 16% average.

Soybean condition rated 14% very poor, 21% poor, 30% fair, 28% good, and 7% excellent. Soybeans dropping leaves was 91%, near 94% last year, and equal to average. Harvested was 29%, near 32% last year and 28% average.

Winter wheat planted was 65%, behind 79% last year and 76% average. Emerged was 25%, behind 41% last year and 37% average.

Sorghum condition rated 35% very poor, 30% poor, 13% fair, 18% good, and 4% excellent. Sorghum mature was 60%, well behind 81% last year, and behind 72% average. Harvested was 11%, behind 20% last year, and near 15% average.

Dry edible beans dropping leaves was 91%, near 94% last year. Harvested was 62%, behind 71% last year.

Pasture and Range Report:
Pasture and range conditions rated 50% very poor, 30% poor, 16% fair, 4% good, and 0% excellent.



IOWA CROP PROGRESS & CONDITION REPORT

Harvest was in full swing with little or no precipitation allowing farmers 6.7 days suitable for fieldwork during the week ending October 2, 2022, according to the USDA, National Agricultural Statistics Service. Fieldwork included harvesting row crops, chopping silage, and some fourth cutting of hay.

Topsoil moisture condition rated 17 percent very short, 36 percent short, 46 percent adequate and 1 percent surplus. Subsoil moisture condition rated 22 percent very short, 35 percent short, 42 percent adequate and 1 percent surplus.

Virtually all of Iowa’s corn crop has reached the dent stage or beyond. Eighty-two percent of Iowa’s corn crop was mature, 1 day behind last year but 4 days ahead of the average. Harvest of the State’s corn crop reached 11 percent complete, 4 days behind last year and 1 day behind the 5-year average. Moisture content of field corn being harvested for grain was at 22 percent. Corn condition dropped slightly to 61 percent good to excellent.

Ninety-six percent of soybeans were coloring or beyond. Soybeans dropping leaves were at 80 percent, 4 days behind last year and 1 day behind the 5-year average. Soybean harvest reached 26 percent, 3 days behind last year but 1 day ahead of the average. Farmers in northwest Iowa led the way with 45 percent harvested while farmers in south central Iowa have harvested just 4 percent. Soybean condition fellslightly to 61 percent good to excellent.

Pasture condition dropped to 28 percent good to excellent. Water for cows and calves on pasture continued to be an issue in areas of the State. Weaning was underway for some livestock producers.



USDA Crop Progress Report Pegs Corn at 20% Harvested, Soybeans at 22%

Corn and soybean harvest both remained slightly behind the average pace last week, USDA NASS reported in its weekly Crop Progress report on Monday.

CORN
-- Harvest progress: 20% of corn was harvested as of Sunday, Oct. 2, up 8 percentage points from the previous week. That puts the current harvest progress 7 percentage points behind last year and 2 percentage point behind the five-year average.
-- Crop development: Corn dented was estimated at 96%, 1 percentage point behind the average. Corn mature was estimated at 75%, even with the five-year average.
-- Crop condition: 52% of corn was rated in good-to-excellent condition, unchanged from the previous week and 7 percentage points below last year's rating of 59%.

SOYBEANS
-- Harvest progress: 22% of the crop was harvested as of Sunday, up 14 percentage points from the previous week. That is 9 percentage points behind last year and 3 percentage points behind the five-year average.
-- Crop development: 81% of soybeans were dropping leaves, 2 percentage points ahead of the five-year average.
-- Crop condition: 55% of soybeans were rated in good-to-excellent condition, unchanged from the previous week and 3 percentage points below last year's rating of 58%.

WINTER WHEAT
Forty percent of the winter wheat crop was planted as of Oct. 2 according to USDA, slightly below the five-year average of 44% for this time of year.
-- Crop development: 15% of winter wheat was emerged as of Sunday, 2 percentage points behind the five-year average.



Nebraska net farm income looks to remain strong in 2022 according to new report

Net farm income in Nebraska is projected to remain nearly unchanged from 2021 to 2022, at around $8 billion according to a new report produced in collaboration between the University of Nebraska-Lincoln’s Center for Agricultural Profitability and the University of Missouri’s Rural and Farm Finance Policy Analysis Center (RaFF).

The fall 2022 Nebraska Farm Income Outlook report projects a growth of $4.7 billion in crop and livestock receipts, which were countered by a $3.2 billion increase in production expenses and a $900 million decline in government payments. The expected flat net farm income in Nebraska differs from the national outlook, which projects a 6% increase in total U.S. net farm income, largely due to the difference between state and national livestock receipts. While Nebraska livestock receipts are projected higher for 2022, they are concentrated in meat animals, particularly beef cattle, while greater gains nationwide include larger projected increases in dairy and poultry. The report includes the impact of weather, geopolitical conflict and other factors on net farm income.

“Farm income projections for 2022 that are on par with the 2021 record levels provide an optimistic picture of the sustained performance and financial strength of the farm sector,” said Brad Lubben, Extension Policy Specialist and the primary Nebraska collaborator on the research.  

However, Lubben mentioned that there are still unknown variables. “The current projections for 2022 could prove to be overly optimistic as harvest yields are assessed and the full impacts of drought are better estimated,” he said.

Key findings of the report include:
    Crop receipts are projected to increase by $2.3 billion in 2022. Despite declines in area, yield and production due to drought and other factors, strong commodity prices pushed corn receipts to rise by $1.1 billion. Soybean receipts were 28% higher compared to 2021 while wheat receipts decreased by $4.5 million from 2021.  
    Livestock receipts are expected to increase by $2.4 billion in 2022, with cattle and calves receipts increasing by $2.2 billion over 2021 and receipts for hogs and pigs increasing by $53 million. Dairy, poultry/eggs and other livestock receipts are projected to increase by a combined $202 million.  
    Feed expenses are forecast to rise by $1.2 billion from 2020 to 2022. Fuel and oils expenses increased $200 million in 2022. Export restrictions, high natural gas prices and production disruptions contributed to record fertilizer expenses.  

The report provides in-depth state- and regional-level insights, which equip industry stakeholders and policymakers with information to understand the state-level impacts of economic factors, weather-related forces and policy initiatives.

The report is produced using an economic model developed by RaFF, which is fed by the latest USDA farm income data and data from the University of Missouri’s Food and Agricultural Policy Research Institute. While 2021 data is subject to adjustment in subsequent publications, net farm income projections for 2022 and beyond can give readers a sense of potential changes in Nebraska’s agricultural production expenses and receipts.  

“RaFF’s state-level insights are critical for decision-makers,” RaFF interim director Scott Brown noted. “By understanding how farmers’ and rural communities’ incomes are impacted by economic factors, sound decisions on changes in programs and policies can be formed.”

The Nebraska Farm Income Outlook is available on the Center for Agricultural Profitability’s website, https://cap.unl.edu/farm-income. A webinar covering the report’s findings will be held at noon CT on Oct. 6. Registration is free at https://cap.unl.edu/webinars.



Flood Pushes GAO to Study Foreign Investment in U.S. Farmland

U.S. Congressman Flood and House Oversight and Committee Republicans are pushing the Comptroller General Gene Dodaro of the U.S. Government Accountability Office (GAO) to study foreign investment in the U.S. farmland and its impact on national security, trade, and food security. This call to action comes as China’s ownership of U.S. farmland poses a growing threat to America’s food and national security.

“Foreign ownership and investment in U.S. agricultural land has nearly doubled in the past decade. This growing trend has elevated concerns regarding national security in a time of uncertainty that is already compounded by challenges to our supply chain infrastructure, high input costs for farmers, and geopolitical pressures,” the Members of Congress wrote in their letter. “It is critical for Congress to have a thorough understanding of foreign investment in our nation’s agricultural land.”



NDA REPORTS TWO ADDITIONAL CASES OF HPAI

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 two confirmed cases of highly pathogenic avian influenza (HPAI). This brings the total number of cases of HPAI in Nebraska to 11.

The 10th farm, a commercial flock, is in York County.  The 11th farm, a backyard flock, is in Box Butte County.

According to NDA State Veterinarian Dr. Roger Dudley, both flocks will be humanely depopulated and disposed of in an approved manner.

NDA will establish a 6.2-mile control zone, as is USDA policy, around the affected premises.  Poultry producers in these zones should know the signs and symptoms of HPAI and notify NDA immediately of sick or dying birds.  

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.

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.



NePPA Youth in Nebraska Agriculture Scholarship Available

The Nebraska Pork Producers Director of Education, Sophia Lentfer has announced that applications are now being accepted for the Larry E. Sitzman Youth in Nebraska Agriculture Scholarship. College students enrolled as full-time undergraduate or graduate students at a fully accredited Nebraska college, university or technical college in an agriculture related degree program are encouraged to apply.

The deadline to apply is November 10. Applications will be reviewed, and selection notifications will be sent by December 1. Students may apply for the scholarship online by visiting www.nepork.org. The Larry E. Sitzman Youth in Nebraska Agriculture Scholarship is a $1,000 scholarship that will be awarded to one deserving applicant.

The scholarship is named for Larry E. Sitzman, who retired in 2016 as Executive Director of the Nebraska Pork Producers Association. Sitzman learned patriotism, service to our country, and respect for our leaders from his parents. While in high school, he heard John F. Kennedy’s inaugural address, in which he said, “Ask not what your country can do for you, ask what you can do for your country.” This address increased his desire to serve.

Agriculture has always been his passion. Throughout his life he has provided service in various forms of leadership. Sitzman is known for sharing his voice defending perspectives and asking challenging questions. He served on many state and national agricultural boards before being named the Director of Agriculture for Nebraska in 1991.

Academics, agriculture, military, and other forms of public service have all improved in some measure due to the leadership, service, and voice of Larry E. Sitzman. Upon his retirement, the Nebraska Pork Producers Association established this scholarship in his honor.

Eligibility Requirements:
- Must be currently enrolled as a full-time undergraduate or graduate student at a fully accredited
Nebraska college, university, or technical college in an agriculture related degree program
- Must have at least one full year of study remaining toward a degree
- Must have plans to work in the agriculture industry upon graduation

Selection will be based on qualities of leadership and participation in collegiate or extracurricular activities related to the agriculture industry.

Remember, the deadline for applications is November 10. Go to www.nepork.org to apply online.



APPLICATIONS FOR RURAL FELLOWSHIP PROGRAM NOW OPEN

Summer 2023 will mark the Rural Fellowship program’s 10th anniversary. The seven-week program, housed in the University of Nebraska–Lincoln’s Institute of Agriculture and Natural Resources, places college students in Nebraska towns to help create and execute community-improvement projects.

For both students and communities, the application window opened Oct. 1. Applications can be found at https://ruralprosperityne.unl.edu/rural-fellowship. Webinars for community leaders interested in hosting student fellows will be held on Zoom at 10 a.m. Oct. 19 and 1 p.m. Oct. 21.

“The Rural Fellowship is different from a traditional internship,” said Helen Fagan, program coordinator. “In an internship, students generally work for a company to gain career experience. With the fellowship, students live in and work for a community, bringing their own talents and education to help improve that community.”

During the application process, community leaders outline projects they’d like to work on the following summer. Fagan and her team then interview student applicants and place them in towns where their education and experiences can be used to help complete those projects. In the past, students have designed hike-and-bike trails, organized “Small Business Saturday” events, hosted youth entrepreneurship seminars and created public health initiatives.

“We didn’t have the ability, from a team member and time perspective, to devote to this,” said Kyle Kellum, CEO of Cherry County Hospital in Valentine, where a major project for 2022 was researching the need for and possibility of creating community-funded daycare. “This was something that we had to tackle as an organization, and having the Rural Fellowship program here has been a tremendous asset to our organization.”

Supervisor Dan Morford said the targeted marketing survey that fellows Ashtyn Humphrey and Ben Murngezi Atali created for Scotts Bluff National Monument last summer was very valuable.

“This is going to help us as our tourism department works together and comes up with new plans to get people to come to western Nebraska,” Morford said.

While having students living and working in the towns is a boon to rural Nebraska communities, the students also benefit from the experience. And not just through their $5,000 paycheck.

“The communities bring in some of the brightest, most vibrant and most ambitious young minds to their communities, ready to be proactive in developing plans to create resources and solve challenges,” said Darrell King, experiential learning and community engagement coordinator for the program. “As for the participants, they get a chance to apply their knowledge to real-world issues and work with community leaders while still learning via their courses. Working with these community leaders provides mentoring opportunities, leadership skills and experiential learning.”

Faith Junck, an environmental science major from Carroll who served in Chadron this summer, said: “Serving as a Rural Fellow in Dawes, Sheridan and Sioux counties for the summer proved to be one of the greatest experiences of my college career so far. Rural communities may be small, but they are mighty. They hold our state together and are the driving force behind ‘the good life’ that can only be experienced in Nebraska.”



DROUGHT RECOVERY ESSENTIALS
– Daren Redfearn, NE Extension Forage & Crop Reside Specialist

So, what happens to forage plants during a drought? Nearly three-fourths of Nebraska’s pastures are classified in poor to very poor condition from the drought. Stick around and I’ll help you understand the drought recovery process for pastures.

The goal of drought planning should focus on reducing negative impacts on forage plants that occur during the drought from overgrazing. Following a return to more favorable growing conditions hopefully next spring and summer, practicing proper grazing management could aid pasture recovery after the drought. Pastures can recover from drought with proper management, but overgrazing and prolonged stress can limit productivity for many years.

Drought alone rarely kills well-managed pasture plants. The most noticeable effect on forage plants during droughty conditions are reduced forage production. Root growth is also limited which restricts the ability of the forage plant to extract deeper soil moisture and nutrients.

Sometimes, drought-stressed pastures are in better condition than they appear. This can be especially true for pastures that were well-managed prior to drought. In many cases, pastures can quickly recover from drought. The key elements for pasture recovery are rain and rest.



Reynolds Signs Harvest Proclamation

Governor Kim Reynolds signed a proclamation relating to the weight limits and transportation of grain, fertilizer and manure.

The proclamation is effective immediately and continues through October 30, 2022. The proclamation allows vehicles transporting corn, soybeans, hay, straw, silage, stover, fertilizer (dry, liquid, and gas), and manure (dry and liquid) to be overweight (not exceeding 90,000 pounds gross weight) without a permit for the duration of this proclamation.

This proclamation applies to loads transported on all highways within Iowa (excluding the interstate system) and those which do not exceed a maximum of 90,000 pounds gross weight, do not exceed the maximum axle weight limit determined under the non-primary highway maximum gross weight table in Iowa Code § 321.463 (6) (b), by more than 12.5 percent, do not exceed the legal maximum axle weight limit of 20,000 pounds, and comply with posted limits on roads and bridges.



Finalists Named for 2022 Iowa's Best Breaded Pork Tenderloin Contest
    
For two decades, Iowa’s Best Breaded Pork Tenderloin Contest has been drawing attention from connoisseurs near and far. After all, the coveted title is not just given away in what many consider the heart of tenderloin country.

The Iowa Pork Producers Association (IPPA) is kicking off National Pork Month by revealing the five Iowa restaurants vying for this year’s top award. Listed alphabetically by town, those finalists are:
    Corydon — Ludlow’s Steakhouse
    Massena — Main Street Bar & Grill
    St. Olaf — St. Olaf Tavern
    Van Meter — 5th Quarter Bar & Grill
    Waukon — Lid’s Bar & Grill

“Even after 20 years, we continue to discover new variations of the classic breaded pork tenderloin sandwich,” said Kelsey Sutter, IPPA’s marketing and programs director. “Some are thick. Some are thin. You’ll also find a diversity of seasonings, textures, and flavors. That all makes selecting a winner incredibly challenging.”

Qualifying pork tenderloins must be hand-breaded or battered. In addition, the Iowa restaurant serving them needs to be open year-round and offer the sandwich as a regular menu item. Food trucks, concession stands, seasonal eateries, and catering businesses are not eligible.

IPPA will announce the first- and second-place winners later this month, dubbed #Porktober22 on social media channels as part of the monthlong celebration of pig farmers and the great product they produce.

The annual quest to find the state’s juiciest, most flavorful tenderloin sandwich starts with public input. Each spring, tenderloin fans have about two months to nominate their favorites. This year IPPA received 4,812 votes for 449 establishments.

Judging of the top 40 took place this summer. That list included the five restaurants with the most nominations in each of IPPA’s eight districts, which “helps ensure statewide representation,” Sutter said.

IPPA members and industry affiliates anonymously visited those locations and scored the tenderloins based on pork taste and quality; physical characteristics; and presentation.

From there, IPPA’s restaurant and foodservice committee reviewed those 40 evaluations and selected the five contenders to advance to the next round. That same committee appointed a panel of three judges to travel to each of the finalists to determine the first- and second-place winners.

The winning restaurant will receive $500, a plaque, a banner to display, and statewide publicity that will drive new business. The runner-up is awarded $250 and a plaque from IPPA.

First-place restaurants are not allowed to compete for five years afterward.

Winners from the past five years: 2021 — Victoria Station, Harlan; 2020 — PrairieMoon On Main, Prairieburg; 2019 — The Pub at the Pinicon, New Hampton; 2018 — Three C’s Diner, Corning; and 2017 — Grid Iron Grill, Webster City.



NCBA Urges EPA to Pause WOTUS Rulemaking Following Supreme Court Arguments

The National Cattlemen’s Beef Association (NCBA) called on the Environmental Protection Agency (EPA) to pause their “Waters of the United States” (WOTUS) rulemaking following today’s Supreme Court oral arguments in the case Sackett v. EPA, a case that will determine the EPA’s authority to regulate bodies of water under the Clean Water Act.

“Today’s oral arguments highlighted the need for the Supreme Court to put this issue to bed once and for all. Since the passage of the Clean Water Act, cattle producers have experienced the regulatory whiplash of shifting WOTUS definitions—on average, a change every 3.8 years,” said NCBA Natural Resources and Public Lands Council Executive Director Kaitlynn Glover. “NCBA is hopeful that the court will support NCBA’s argument for clear and limited WOTUS definition, but in the meantime, we call on the EPA to suspend their rulemaking until the outcome of the case is clear.”

In April 2022, NCBA filed an amicus brief before the Supreme Court calling for a new test for determining whether a water feature fell under the jurisdiction of the Clean Water Act. NCBA’s argument would allow the government to protect substantial bodies of water while preventing overreach on small isolated agricultural water features.

NCBA also filed comments on the Biden administration’s proposed “Waters of the U.S.” rule. NCBA is calling for this rulemaking to halt until the Supreme Court issues a ruling in the Sackett v. EPA case.

Background
NCBA has been involved in every step of the WOTUS rulemaking process. In February, over 1,600 cattle producers from 44 states submitted a letter to the EPA calling for a limited WOTUS definition that retained exclusions for common small water features found on farms and ranches. The Kansas Livestock Association, an NCBA affiliate, also organized an EPA roundtable where cattle producers highlighted their concerns with an expansive WOTUS rule.

NCBA also backed a report from the EPA’s own Farm, Ranch, and Rural Communities Advisory Committee that recommended the EPA develop a clear WOTUS definition, protect WOTUS exclusions of agricultural features like farm ditches, stock ponds, prairie potholes, and prior converted cropland, and ensure EPA compliance with the Clean Water Act and Supreme Court precedent.



2023 Cattle Industry Convention Registration Now Open

It’s time to “Get Jazzed” in New Orleans for the 2023 Cattle Industry Convention & NCBA Trade Show. Registration and housing are now open for the annual event, which takes place Feb. 1-3, 2023. Every year, CattleCon draws thousands of cattlemen and women from across the country for education, entertainment and engagement.

Convention attendees will gain insights on current market trends during the CattleFax Outlook Seminar, hear a “State of the Industry” update from NCBA leadership, and recognize Regional Environmental Stewardship Award Program recipients and Beef Quality Assurance Award winners. Participants will also enjoy networking opportunities and entertainment, including a special Thursday evening event and a Cowboy Concert on Friday night featuring Neal McCoy and the country music group Midland.

The convention is preceded by the 30th annual Cattlemen’s College, which is famous for highlighting cutting-edge topics from industry leaders. This event begins Tuesday, Jan. 31, with afternoon sessions and live animal demonstrations, followed by an evening reception. It continues Wednesday with 18 educational session options and a keynote presentation and lunch.

In addition to experiencing a wide variety of education and entertainment opportunities, producers will be hard at work guiding both Beef Checkoff and NCBA policy programs. Annual meetings of the National Cattlemen’s Beef Association, the Cattlemen’s Beef Board, American National CattleWomen, CattleFax and National Cattlemen’s Foundation will also take place.

A variety of registration options are available including the popular Education Package, which includes full convention registration and admission to Cattlemen’s College. For more information and to register and reserve housing, visit https://convention.ncba.org/.



Registration Open for 2023 American Farm Bureau Convention

The American Farm Bureau Federation announced the opening of general registration today for the 2023 American Farm Bureau Convention. The convention will be held in-person Jan. 6-11, 2023, in San Juan, Puerto Rico. AFBF assessed the status of San Juan and the convention facilities following Hurricane Fiona and determined that all are fully operational.

“Mi Familia” (My Family) is the theme of AFBF’s 104th consecutive convention, a “must attend” event that offers attendees the inside track on policies and perspectives that will affect farms, ranches and agribusinesses in 2023 and beyond.

“This is your opportunity to gain insights about the future of agriculture, sharpen your skills and help define the agenda in Washington,” said AFBF President Zippy Duvall. “I look forward to seeing you in January in Puerto Rico as the Farm Bureau family gathers together at the start of another year of feeding, clothing and fueling our great nation.”

Attendees may participate in a variety of educational workshops to advance their leadership skills, expand business proficiency and gain insights from industry visionaries about food production-related policies and trends. The convention also offers the opportunity to learn about cutting-edge innovations in agriculture, hear from powerful speakers and explore a vibrant trade show with exhibitors showcasing the latest in agricultural technology, tools and services.

Workshop topics include the 2023 farm bill, policy updates, market outlooks, trade, the latest ag education resources and strategies for coping with farm stress.

More than 50% of the land in Puerto Rico is used for agriculture. An exciting aspect of this convention is the opportunity for farmers and ranchers from the 50 states to see and learn about crops and agricultural practices unique to Puerto Rico. Information about ag and leisure tours of Puerto Rico is available on the convention website. Details about additional tours will be posted when available.

View the high-level convention agenda here and register here. The official event hashtag is #AFBF23 and the event website is https://annualconvention.fb.org/.



USDA Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 500 million bushels in July 2022. Total corn consumption was up 1 percent from June 2022 but down 1 percent from July 2021. July 2022 usage included 91.3 percent for alcohol and 8.7 percent for other purposes. Corn consumed for beverage alcohol totaled 3.40 million bushels, down 7 percent from June 2022 and down 7 percent from July 2021. Corn for fuel alcohol, at 446 million bushels, was up less than 1 percent from June 2022 but down 1 percent from July 2021. Corn consumed in July 2022 for dry milling fuel production and wet milling fuel production was 92.8 percent and 7.2 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.93 million tons during July 2022, up 1 percent from June 2022 but down 2 percent from July 2021. Distillers wet grains (DWG) 65 percent or more moisture was 1.28 million tons in July 2022, down less than 1 percent from June 2022 but up 14 percent from July 2021.

Wet mill corn gluten feed production was 271,334 tons during July 2022, down 6 percent from June 2022 and down 11 percent from July 2021. Wet corn gluten feed 40 to 60 percent moisture was 221,764 tons in July 2022, up 9 percent from June 2022 and up 6 percent from July 2021.



Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.44 million tons (181 million bushels) in July 2022, compared with 5.22 million tons (174 million bushels) in June 2022 and 4.99 million tons (166 million bushels) in July 2021. Crude oil produced was 2.16 billion pounds up 4 percent from June 2022 and up 9 percent from July 2021. Soybean once refined oil production at 1.68 billion pounds during July 2022 increased 2 percent from June 2022 and increased 6 percent from July 2021.

Canola seeds crushed for crude oil was 150,198 tons in July 2022, compared with 147,715 tons in June 2022 and 145,967 tons in July 2021. Canola crude oil produced was 117 million pounds, down 3 percent from June 2022 and down 6 percent from July 2021. Canola once refined oil production, at 119 million pounds during July 2022, was down 4 percent from June 2022 and down 19 percent from July 2021.

Cottonseed once refined oil production, at 37.6 million pounds during July 2022, was down 11 percent from June 2022 but up 15 percent from July 2021.

Edible tallow production was 78.4 million pounds during July 2022, down 18 percent from June 2022 and down 8 percent from July 2021. Inedible tallow production was 305 million pounds during July 2022, down 15 percent from June 2022 but up less than 1 percent from July 2021. Technical tallow production was 106 million pounds during July 2022, down 2 percent from June 2022 and down 2 percent from July 2021. Choice white grease production, at 96.4 million pounds during July 2022, decreased 13 percent from June 2022 but increased 15 percent from July 2021.



Growth Energy Files Court Intervention in Support of 2020, 2021, and 2022 RVOs

Growth Energy filed a motion in the U.S. Court of Appeals for the District of Columbia Circuit to intervene in support of the U.S. Environmental Protection Agency’s (EPA) 2020, 2021, and 2022 Renewable Volume Obligations, which are currently being challenged by oil industry and environmental groups. On June 3rd, EPA finalized its 2020, 2021, and 2022 RVOs, setting the 2022 RVO for conventional biofuels at 15 billion gallons. Growth Energy CEO Emily Skor released the following statement in support of EPA’s forward-looking volumes:

“By setting the 2022 RVO at 15 billion gallons, EPA set a baseline for strong future blending levels under the RFS, ensuring drivers have access to lower-cost, lower-carbon fuel at the pump,” said Skor. “After drivers saw record-high fuel prices at the pump earlier this year and witnessed a volatile global fuel supply, we should be blending more low-cost biofuels into our fuel supply, not less. We support EPA’s efforts to mitigate climate change and lower prices at the pump through robust RVOs and look forward to continuing our work with them to ensure a strong RVO in 2023 in beyond.

Background
On June 3rd, EPA released its final RVOs for years 2020, 2021, and 2022. The agency’s final rule lowers conventional ethanol volumes to 12.5 billion gallons for 2020, advanced biofuel at 4.63 billion, and cellulosic at 510 million. In addition, the rule sets conventional ethanol at 13.79 billion gallons in 2021 and 15 billion gallons in 2022, while setting advanced biofuels at 5.05 billion gallons in 2021 and 5.63 billion gallons in 2022, including 560 million gallons of cellulosic biofuel in 2021 and 630 million gallons of cellulosic biofuel in 2022. The rule adds a supplemental 250 million gallons that had been illegally waived in the 2016 RVO.  Environmental and oil industry groups brought petitions for review challenging the RVO on a number of grounds.    



GAO Spotlights Ethanol Production as Prime Carbon Capture Opportunity
Ann Lewis, Renewable Fuels Association Senior Analyst

Late last week, the U.S. Government Accountability Office published a technology assessment on carbon capture, utilization, and storage (CCUS), drawing on findings from peer-reviewed literature, a meeting of experts, and stakeholder interviews that included the Renewable Fuels Association.

Overall, the research found that out of all the potential sources of carbon dioxide for CCUS that GAO examined—power generation, cement, iron and steel, direct air capture, and ethanol—ethanol is the most promising. At a time when decarbonization is essential for a climate-friendly future, the GAO report makes clear that policymakers should embrace ethanol as the best available near-term opportunity for transformative and sustainable CCUS. GAO reached the following conclusions about ethanol’s viability as a source for CCUS:

Ethanol Biorefineries Have the Highest CO2 Concentration and Purity
Integrating carbon capture technologies into industrial facilities is easier in sectors where there is one singular CO2 emission source and waste gas streams have higher concentrations of CO2. Fermentation of sugars in ethanol production yields 99.9 percent pure CO2 and requires little processing before use or storage in geologic formations. Further, the CO2 concentration in ethanol waste gas streams is upwards of 95 percent.

Ethanol Offers the Lowest Cost of Capture
GAO estimates the cost of CO2 capture at ethanol plants ranges from $0-$35 per metric ton of CO2. In contrast, carbon capture is costly for high-emitting point sources like power generation and iron and steel manufacturing, which run in the $40-$290/mt range. GAO estimates direct air capture is higher still, topping out at a whopping $600/mt CO2.

The Ethanol Industry Has a High Number of Potential Capture Sources
GAO found that if every ethanol biorefinery captured and sequestered its CO2 emissions from fermentation, some 45 million metric tons of CO2 would be removed from the atmosphere every year. That’s comparable to the amount of potential CO2 sequestration if every iron and steel facility or every cement facility adopted CCUS. As of 2021, only twelve facilities—including three ethanol plants—had integrated commercial-scale CCUS operating in the U.S. However, GAO says CCUS projects at another 34 ethanol plants were in advanced development—triple the existing number of commercial CCUS projects across all sectors. Further, a quarter of the nation’s 200-plus ethanol plants already capture CO2 for sale in the food-grade CO2 market, making them prime candidates for CCUS adoption.
 
Ethanol CCUS Has the Highest Technology Readiness Score
The ethanol industry has a history of innovation to reduce energy and water use, drive down costs, generate new sources of revenue from value-added co-products, and lower its carbon intensity. Additionally, the industry has been implementing commercial technologies to capture CO2 emissions for years, with the added advantage of requiring no separation technologies due to the high-purity CO2. Based on GAO’s technology readiness metric, ethanol is the clear winner with an ample jump on the other sectors. In other words, the ethanol industry is ready today to adopt low-cost CCUS technologies that can have a significant impact on reducing greenhouse gas emissions.

While not mentioned in the GAO report, it’s worth noting that CO2 emissions from ethanol fermentation are biogenic, meaning they come from natural, renewable sources. The CO2 released during fermentation is the same CO2 that was recently sucked out of the atmosphere by the corn plant via photosynthesis. That means permanent sequestration of CO2 from fermentation results in permanent removal of atmospheric CO2.

The GAO also identified policy options to address the challenges and benefits of CCUS technologies. Key recommendations include the development of technology-neutral standards, including a national low carbon fuel standard, standardized lifecycle analysis guidelines, and support of community engagement to credibly reinforce the advantages of CCUS like local job creation, economic development, and climate change mitigation. Many of GAO’s suggestions align with and reinforce RFA’s existing policy objectives for CCUS.

As Congress evaluates future climate-smart policies that can help the economy achieve net zero emissions, this report makes a strong case that the ethanol industry should play a central role in scaling up carbon management.



USDA Announces October 2022 Lending Rates for Agricultural Producers

The U.S. Department of Agriculture (USDA) announced loan interest rates for October 2022, which are effective Oct. 3, 2022. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

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

Interest rates for Operating and Ownership loans for October 2022 are as follows:
    Farm Operating Loans (Direct): 3.875%
    Farm Ownership Loans (Direct): 4.125%
    Farm Ownership Loans (Direct, Joint Financing): 2.500%
    Farm Ownership Loans (Down Payment): 1.500%
    Emergency Loan (Amount of Actual Loss): 3.750 %

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

You can find out which of these loans may be right for you by using our Farm Loan Discovery Tool (also available in Spanish).

Commodity and Storage Facility Loans
Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.

Commodity Loans (less than one year disbursed): 4.625%
    Farm Storage Facility Loans:
        Three-year loan terms: 3.625%
        Five-year loan terms: 3.375%
        Seven-year loan terms: 3.375%
        Ten-year loan terms: 3.125%
        Twelve-year loan terms: 3.375%
    Sugar Storage Facility Loans (15 years): 3.500%



Some WI Farmers Receive Notice of Additional Deductions from Milk Checks  

Wisconsin dairy farmers are reporting notifications from some cooperatives and milk buyers that new ‘market adjustments’ will be deducted from their milk checks. For example, farmers are reporting they will be seeing from $0.90 per hundredweight up to $2.50+ per hundredweight market adjustments which will be deducted from the September milk checks and continue through the end of the year.
 
A copy of one letter was sent to the American Dairy Coalition. In it, the cooperative cites rising costs and insufficient “make allowances” as one reason for the new deduction. A recent cost of processing study done for USDA by Dr. Mark Stephenson of UW Madison indicates that the current make allowances that are already built into the USDA end-product pricing formulas are collectively about $1.00 per hundredweight short of covering costs to make the bulk cheddar, butter, nonfat dry milk and whey that are surveyed monthly for the USDA pricing formulas.

On the other hand, the cost of processing report described the difficulty in extracting the costs related to only those four bulk commodities because most dairy plants today make a range of products that are not included in the end-product pricing formulas. Those other products represent substantially more milk and may be sold by processors at higher prices without increasing the price they, in turn, pay to their farmers – this appears to allow additional processor income to cover costs.

We are learning that hearings could soon be requested to raise the processor make allowances that are embedded in the milk pricing formulas, which, if approved, could reduce the prices paid to dairy farmers.

We understand that processors are facing inflation in their input costs. Farmers are also experiencing intense inflationary pressure on their operations too. The difference is, the farmers’ cost of production is not considered in the milk pricing formulas – at all.

These milk check deductions appear to be a way to shift rising costs over to farmers through mailbox milk check deductions.

Milk cooperatives are able to do this even if they are participating in the federal milk marketing order revenue-sharing pools. The law recognizes the entire cooperative as a producer, so when they pay their farmer members, they do not have to pay the minimum federal order price. They can adjust it by re-blending what they receive from the pool and from sales according to their own utilization of milk, and they can add deductions to cover costs that they determine are not being extracted from their market sales. Proprietary plants, on the other hand, must pay the minimum price if they participate in the federal order pool.

Currently, there are several divergences occurring between different formula products and milk use classes. Plus, farmers have seen a $1 to $2.00 reduction in their Class I fluid milk price due to a formula change made in the last Farm Bill without a Federal Milk Marketing Order hearing and without most farmers knowing much about it until it was done. Over the past 42 months since the change was implemented, the net loss to all dairy farmers grew to more than $887.6 million. This is like a $0.63 deduction on all Class I milk pounds sold over the course of nearly four years or a $0.20 per hundredweight deduction on the blended price for all milk sold for all uses over that time. The new formula has also performed poorly under market stress, creating dysfunction in the Federal Orders with further negative impacts on mailbox milk prices and the performance of purchased risk management tools.

From the processor side, they too are conflicted with other aspects of the milk price formulas because of divergences between barrel cheese prices and block cheese prices and in the value of fat used in making butter vs. cheese.
Discussions about federal milk pricing formulas have been ongoing, and there will be an American Farm Bureau national stakeholder meeting in Kansas City in two weeks about possible future reforms.

ADC's position is straightforward. We believe these 'processor make allowances' that are embedded in the pricing formulas should be put on hold until the milk pricing change that was made in the last Farm Bill is thoroughly vetted through a side-by-side comparison at a FMMO hearing, or is reversed. The reason we have taken this position is because farmers are already on the short end of the stick. They are the last rung in the supply chain ladder, and they have no one to go back to extract a “make allowance” for their rising inflationary costs.

If the make allowances are elevated without addressing these other concerns, the mailbox price will be reduced to the farmer, and there is nothing to prevent processors from re-blending and the potential for additional deductions.

Only Class I beverage milk is required to participate in the federal milk marketing order pools. So, the other side of this issue is the pooling revenue sometimes goes negative when these price divergences happen and processors take higher value manufacturing milk out of the revenue sharing pools to increase profitability, but they don’t necessarily equalize the additional revenue with their dairy farmers.

ADC's bottom line is this: We are navigating uncharted waters with a system that is antiquated and not nimble, a convoluted milk pricing scheme in which the actual dairy need to have a clear conclusive voice. That’s why ADC has spent so much attention and time on this issue with webinars and forums and teleconferences and communications to get farmers informed and at the table to secure their future viability.



Bayer Fund Partners with Nebraska Farmers in Effort to Direct Funds to Local Nonprofits, Schools and Ag Programs

Bayer Fund’s America’s Farmers Grow Communities program is once again teaming up with Nebraska farmers across the country to find and fund the organizations and institutions that keep their communities thriving. From August 1 to November 1, eligible farmers can enroll for the chance to direct a $5,000 donation to a local eligible nonprofit organization, school or youth agriculture program.

Since its inception in 2010, America’s Farmers initiatives have awarded more than $65 million to thousands of schools and nonprofit organizations across the country. Farmers have played a key role in identifying and directing funds to programs and organizations that contribute to their communities’ health and vibrancy, such as food banks, schools and agriculture programs. In Nebraska alone, farmers have directed more than $4.2 million in Grow Communities funds to local nonprofits.

“Grow Communities is a special program because we work closely with farmers to find and fund nonprofit organizations that make a positive impact in their communities,” said Al Mitchell, Bayer Fund President. “Every year, we hear from farmers and Grow Communities recipients who tell us the dollars are making a difference. Because of this feedback, the Bayer Fund team is excited to help strengthen rural communities through this program.”

Farmers are eligible to enroll in Grow Communities if they are 21 years of age or older and are actively engaged in farming at least 250 acres of any crop. To enroll in or learn more about Grow Communities, including program eligibility and rules, farmers can visit www.AmericasFarmers.com or call 1-877-267-3332 toll-free. Winners will be announced February 2023.



Smithfield Foods Sending 150,000 Servings of Food to Florida to Support Hurricane Ian Relief

Smithfield Foods is sending more than 37,000 pounds of food – the equivalent of 150,000 servings – to Fort Myers, Florida, through its Helping Hungry Homes® program in response to the devastation caused by Hurricane Ian.

The protein will be delivered to Mercy Chefs, a Portsmouth, Virginia-based nonprofit that deploys to disaster zones across America, to serve free, chef-prepared, restaurant-quality hot meals to victims, volunteers and first responders in Fort Myers.

“Our hearts go out to everyone in the path of this catastrophic hurricane,” said Jonathan Toms, senior community affairs manager for Smithfield Foods. “We hope this food assistance brings some relief to the people of Fort Myers as they start down the difficult road to recovery.”

Chef Gary LeBlanc, founder and chief executive officer of Mercy Chefs, said, “Our continued partnership with Smithfield Foods is critical to feeding those who have lost everything. We’re honored to have the opportunity to serve those facing extreme devastation in Hurricane Ian's wake.”

Helping Communities is a featured pillar of Smithfield's industry leading sustainability program. Since 2008, the company has donated hundreds of millions of protein servings across the U.S. through its signature hunger-relief initiative Helping Hungry Homes® and recently pledged to donate an additional 200 million servings by 2025.