Thursday December 01 Ag News

 Nebraska Corn Board Seeks Candidates for Vacancies

Notice is hereby given that the terms for three members of the Nebraska Corn Development, Utilization and Marketing Board (Nebraska Corn Board) will expire June 30, 2023, and Nebraska’s corn checkoff program is seeking candidates to petition for those districts. The open positions represent Districts 2, 3 and the Board’s At Large Director.
    District 2 - Includes the counties of Thayer, Fillmore, Clay, Nuckolls, Webster, Franklin, and Adams (Note: John Greer, the current District 2 director, has indicated he will not pursue reappointment).
    District 3 - Includes the counties of York, Polk, Hamilton, and Merrick (Note: Brandon Hunnicutt, the current District 3 director, has indicated he will pursue reappointment).
    At Large – The at large director represents all counties in Nebraska (Note: Jay Reiners, the current At Large director, has indicated he will pursue reappointment).

Appointments to the board for Districts 2 and 3 are made by the Governor of Nebraska. The at large director appointment is made by the board.  Any candidate seeking appointment may place his or her name on the candidacy list by filing a petition with the Nebraska Corn Board. Qualified candidates include those individuals who are citizens of Nebraska, reside in an open district, are at least 21 years old, have been actively engaged in growing corn in Nebraska for a period of five years and derive a substantial portion of their income from growing corn. Board members who currently represent these districts are also eligible to re-petition.

Petitions may be obtained by writing the Nebraska Corn Board (245 Fallbrook Blvd. Suite 204, Lincoln, NE 68521), by calling 402-471-2676 or emailing ncb.info@nebraska.gov. A candidacy petition must carry the signatures of at least 50 corn producers from that district. The At Large position must have 50 signatures from farmers throughout the state of Nebraska. All petitions must be received by the Nebraska Corn Board no later than 5:00 p.m. central time on Friday, May 19, 2023. Faxed copies do not qualify.



Acting Gov Foley Extends Temporary Waiver for Truckers Hauling Critically Needed Fuels

Today, acting Governor Mike Foley signed Executive Order 22-07 to extend emergency relief on account of regional fuel shortages.  The order temporarily allows drivers to work extended hours to haul gasoline or gasoline blends, diesel, fuel oil, ethanol, propane, and biodiesel.

By facilitating increased fuel transportation, the order will help reduce delays at petroleum product terminals in order to make fuels more readily available to consumers.

The order, which extends Executive Order 22-06, is effective immediately and will remain in effect through December 31, 2022.



Burkey named interim head of UNL Animal Science Department

Tom Burkey, a professor of non-ruminant nutrition at the University of Nebraska-Lincoln, has been named the interim head of UNL’s Animal Science Department. His appointment will take effect Dec. 17.

Current department head Clint Krehbiel will leave the post in December serve as dean of the Gordon W. Davis College of Agricultural Sciences and Natural Resources at Texas Tech University. His last day will be Dec. 16. A national search for a permanent department head will be announced early in 2023.

“Dr. Burkey is a trusted and respected leader and colleague in the Animal Science Department,” said Mike Boehm, NU vice president and Harlan Vice Chancellor for UNL’s Institute of Agriculture and Natural Resources. “I am delighted he has agreed to serve as interim department head, and I know he will capably lead the department through this time of transition.”

A Lincoln native, Burkey joined the faculty in the animal science department in 2006. He conducts research related to the interactions between nutrition, gut microbes, and immunity in pigs. He also teaches a graduate-level nutrition course and is part of the teaching faculty at the UNL/Iowa State University Professional Program in Veterinary Medicine. Since 2020, he has served as the associate dean for graduate education in UNL’s College of Agricultural Sciences and Natural Resources.

“I am humbled and excited to serve as interim head of the department,” Burkey said. “The opportunity to share my passion for the land-grant mission areas with students, staff, faculty and stakeholders cannot be understated, and I look forward to serving in this capacity.”

For more information about UNL’s Animal Science Department, visit animalscience.unl.edu.



Nebraska Extension Launches New Strategic Direction

Nebraska Extension is rolling out its 2023-2027 strategic direction, captured in three ambitions designated as “The Big 3:”
        Strengthen Nebraska agriculture and food systems.  
        Inspire Nebraskans and their communities.  
        Enhance the health and wellbeing of all Nebraskans.

This strategic direction is primarily based on ongoing conversations with people from across the state, reflecting the critical issues Nebraskans must address for a thriving future:  
    Developing a skilled workforce
    Enhancing health and well-being
    Creating statewide economic vitality
    Retaining and attracting young people
    Leveraging Nebraska’s strengths for sustained success

The direction is also aligned with resources and research, such as Blueprint Nebraska, that depict Nebraskans’ opportunities and challenges, plus the University of Nebraska’s Five-Year Strategy and University of Nebraska-Lincoln’s N2025 | Strategic Aims.  

“We’re really excited to be focusing our work on the things that matter the most to Nebraskans,” said Charlie Stoltenow, dean and director of Nebraska Extension. “The Big 3 capture and address these critical issues, closely tie Extension to work of the greater University of Nebraska, and leverage the strengths and opportunities of the people of Nebraska Extension. I’ve learned in my time here that nobody connects with the people of Nebraska like the people of Extension, so we have a fantastic basis on which to make real progress in delivering on these ambitions.”

Nebraska Extension is kicking off this strategic direction in fall 2022 with the creation of plans directly supporting the strategic direction. The execution of those plans begin in January 2023. Ongoing execution, evaluation and reporting, adjustment, and updating will take place from 2023. Complete descriptions of The Big 3:  

Strengthen Nebraska agriculture and food systems. By connecting with Nebraska Extension, Nebraska amplifies its strengths in agriculture, food production and natural resources stewardship in ways that are environmentally and economically sustainable—ensuring that all Nebraskans have access to safe and healthy food, abundant water, and the benefits of Nebraskan’s outdoor spaces.

Inspire Nebraskans and their communities. By connecting with Nebraska Extension, Nebraska has a robust, diverse population of well-prepared, innovative and productive people—beginning with Nebraska youth—living in thriving, vibrant communities that are contributing to the sustained success and growth of the entire state.

Enhance the health and wellbeing of all Nebraskans. By connecting with Nebraska Extension, Nebraskans are healthier in every respect—physically, mentally and economically—leading to an even better quality of life, greater prosperity and a promising future for all.

“On my travels across the state in 2022, I’ve been inspired by the people within Extension and Nebraskans overall,” Stoltenow said. “I feel confident our focus on helping Nebraskans create a brighter future paves the way for even more contributions from Nebraska Extension.”



 2023 Young Leaders Begin Their Leadership Journey

This week, the 39th American Soybean Association Corteva Agriscience Young Leaders class began its leadership journey at Corteva’s Global Business Center in Johnston. The Class of ’23 heard from soybean leader Ronnie Russell, ASA executive committee member; Tim Bardole, USB director; and Brian Kemp, USSEC director. Participants took part in DiSC and Communications training and received updates from Corteva leadership on soybean innovations and issues. While in Iowa, they also toured the World Food Prize facility.

This year’s class includes Lane Anders (AL); Steve Breeding and Lacey Dixon (DE); Sarah Tweet Landers (IL); Alexandra Miller (IA); Andrew and Mary Lauver (IA); Daniel Anderes (KS); Catlin Young and Aaron Vinson (KY); Robert Wasmiller (MI); Tim and Renae Braun (MN); Gary and Tina Schoenfeld (MN); Skyler and Ashlyn de Regt (MS); Bill Parks (MS); Aaron and Chandra Blase (NE); David Thomas (NC); Stephanie Cook (ND); Dustin and Casey Converse (OH); Austin Heil (OH); Kody and Shelby Leonard (OK); Jena Hanna (SC); Jeff and Emily Kloucek (SD); Will and Robin Hutchinson (TN); Jake Steffes (WI) and Daniel Chiappetta (Ontario, Canada).

Corteva Agriscience’s Matt Rekeweg, U.S. Industry Affairs Leader, Turner Bridgforth, Federal Government and Industry Relations Manager and Katie Jordan, Federal Government Affairs Associate, hosted the group.

The 2023 members will continue their training in Orlando, Florida, in conjunction with Commodity Classic.

ASA is grateful to Corteva Agriscience for its partnership and sponsorship of the program.



Iowa Farmers Appointed to United Soybean Board Leadership

The U.S. Department of Agriculture (USDA) has appointed two Iowa soybean farmers to serve as directors on the United Soybean Board (USB). Farmer leadership directly represent all U.S. soybean growers with oversight of national soybean checkoff dollars that support research, market development and promotional efforts to boost farmer profitability and opportunities.
 
Robb Ewoldt of Davenport and Brent Renner of Klemme will join the board of 77 farmer directors from across the country; five representing Iowa. They will be sworn in for service during the USB December Meeting in St. Charles, Mo.
 
“USB directors play an important role in managing checkoff dollars,” said Ewoldt, who completed his Iowa Soybean Association (ISA) presidency in September. “Serving as ISA president helped me recognize how important representation is, especially in the decision-making process of allocating these funds.”
 
Ewoldt will complete a three-year term, while Renner’s one-year appointment fills a vacancy left by the passing of former USB director Tom Oswald of Cleghorn earlier this year. Renner has served on the ISA board since 2019.
 
“It’s an honor to represent soybean farmers through this appointment and see up close how these investments are bringing real value to our industry and to every farmer,” said Renner.
 
Ewoldt and Renner join April Hemmes, Hampton; Lindsay Greiner, Keota; and Tim Bardole, Rippey, as Iowa soybean farmers serving as USB directors.



ISU Pasture, Hay and Forage Meeting at Mapleton

Severe and extreme drought in NW Iowa has cattle producers wondering how how to prepare for 2023.  Is there financial help? How do you improve drought-stressed fields and are some forages better?  To address this, ISU Extension and Outreach will host a Pasture, Hay and Forage Meeting on Dec. 12 at St. John’s United Methodist Church in Mapleton from 1:00 to 3:00 p.m.  Guest speakers will cover assistance through USDA and a new forage insurance program.  ISU field specialists will discuss assessing and repairing pastures and hay fields and things to consider with alternative forages.  The meeting is offered at no charge.  However, pre-registration is requested by Dec. 9 and may be made by calling the Monona County Extension Office at 712-423-2175. For more information, contact Beth Doran, ISU Extension beef specialist, at 712-737-4230 or email doranb@iastate.edu.



Feedlot Forum 2023 Will Feature Strategies to Increase Income

Feedlot Forum 2023 returns to the Terrace View Event Center in Sioux Center on Jan. 17 with a production-focused agenda. Iowa State University Extension and Outreach beef specialist Beth Doran said the session presenters will provide information to increase income for beef producers and allied agri-business professionals.

“This year’s short, power-packed program features strategies to improve the profitability of the feedlot enterprise,” she said. “We also have more than 20 sponsors with cutting edge technologies to help enhance feedlot returns.”

Zach Smith, assistant professor in animal science at South Dakota State University, will begin the day by sharing research on best management practices to enhance the feeding value of high moisture corn and earlage. With the accelerated cost of feed, maximizing nutritional quality of feed is an effective way to improve cattle performance and reduce the number of days cattle are on feed.

Although testing the nutritional value of earlage and high moisture corn is routine for many feed producers, sometimes interpretation and use of the analyses can be challenging. To help producers sort through the numbers, Wes Gentry, nutritionist with Midwest PMS LLC, will explain how to implement the test results when formulating a cattle diet, and will provide an update on important changes in implant labels.

According to Iowa State University associate professor in agricultural and biosystems engineering Dan Andersen, manure can be a currency creator for a beef feedlot. Andersen will talk about current and future markets for carbon credits, and about manure treatments that can provide a positive financial impact. Specifically, he’ll describe treatments such as composting that turn manure into a marketable product, and what’s necessary to make this work.

Caitlyn Grudzinski, market analyst and account executive for Commodity and Ingredient Hedging, will round out the forum with a market outlook. She’ll also share the impact of major factors such as drought, inflation, transportation and consumer demand on the price of fed cattle and returns to cattle feeding.

The event page on the IBC website has more information on the program and links to the flyer and online registration. Registration is $25 per adult and $10 per student, and is due Jan. 10. Payment may be made online with a credit card or mailed to ISU Extension and Outreach Sioux County, 400 Central Ave. NW, Suite 700, Orange City, IA 51041.

For more information, contact Doran at 712-737-4230 or doranb@iastate.edu.



USDA Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 505 million bushels in October 2022. Total corn consumption was up 16 percent from September 2022 but down 3 percent from October 2021. October 2022 usage included 91.2 percent for alcohol and 8.8 percent for other purposes. Corn consumed for beverage alcohol totaled 4.59 million bushels, up 2 percent from September 2022 and up 19 percent from October 2021. Corn for fuel alcohol, at 449 million bushels, was up 17 percent from September 2022 but down 4 percent from October 2021. Corn consumed in October 2022 for dry milling fuel production and wet milling fuel production was 92.4 percent and 7.6 percent, respectively.

Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 5.90 million tons (197 million bushels) in October 2022, compared with 5.03 million tons (168 million bushels) in September 2022 and 5.91 million tons (197 million bushels) in October 2021. Crude oil produced was 2.34 billion pounds up 17 percent from September 2022 but down slightly from October 2021. Soybean once refined oil production at 1.79 billion pounds during October 2022 increased 8 percent from September 2022 and increased 3 percent from October 2021.



USGC 2022 Corn Harvest Quality Report: Higher Average Test Weight, Protein Content in This Year’s Harvest

According to the U.S. Grains Council’s (USGC’s) 2022/2023 Corn Harvest Quality Report, the 12th annual corn quality survey published globally today, the 2022 U.S. corn crop entering the market channel has a higher average test weight, higher protein concentration and lower total damage relative to each quality factor’s average of the previous five crops.

Cool temperatures early in the year caused delays in planting but May’s warm weather allowed farmers to catch up and the crop has since matured at a near-average pace. Areas of the western Corn Belt continued to endure higher heat and lower than expected precipitation.

These factors contributed to reduced yields in this year’s crop but accelerated maturation and the clear weather ensured a timely harvest, which has maintained crop quality.

The average aggregate quality of the representative samples tested was better than the grade factor requirements for U.S. No. 1 grade. The report also showed that 81.5 percent of the samples met the grade factor requirements for U.S. No. 1 grade and 95.3 percent met the grade factor requirements for U.S. No. 2.

“Through trade, the Council is committed to the furtherance of global food security and mutual economic benefit and offers this report to assist buyers in making well-informed decisions by providing reliable and timely information about the quality of the current U.S. crop,” said Kurt Shultz, USGC senior director of global strategies. “This year’s supply allows the United States to remain the world’s leading corn exporter and will account for an estimated 29.9 percent of global corn exports during the upcoming marketing year.”

The report is based on 600 yellow corn samples taken from defined areas within 12 of the top corn-producing and exporting states. Inbound samples were collected from local grain elevators to measure and analyze quality at the point of origin and provide representative information about the variability of the quality characteristics across the diverse geographic regions.

This year’s crop showed higher test weight than 2021; higher average total damage than 2021 but lower than the five-year average and the same average moisture content as 2021 and the five-year average. The crop also showed higher average protein concentration than 2021 and the five-year average.

Nearly all of the samples tested below the U.S. Food and Drug Administration (FDA) action level for aflatoxins and 86.1 percent of the samples tested below the 5.0 parts per million FDA advisory level for deoxynivalenol (DON) or vomitoxin. Of the samples tested for fumonisin, 98.9 percent tested below the FDA’s strictest guidance level of 5.0 parts per million, a slightly higher proportion than in 2021.

The 2022 U.S. corn crop checks in at 353.84 million metric tons (13,930 million bushels) and the average yield is 10.81 metric tons/hectare (172.3 bushels per acre), according to the U.S. Department of Agriculture (USDA) World Agricultural Supply and Demand Estimate.

The 2022/2023 Corn Harvest Quality Report provides information about the quality of the current U.S. crop at harvest as it enters international merchandising channels. A second Council report, the 2022/2023 Corn Export Cargo Quality Report, will measure corn quality at export terminals at the point of loading and will be available in early 2023.

The Council will present its findings to buyers around the world in roll-out events starting in January 2022 with programs scheduled across Asia, Latin America and the Middle East.

Presentations will continue through the first quarter of the new year and aim to offer participants clear expectations regarding the quality of corn for this marketing year. During these events, crop quality information is accompanied by presentations on U.S. corn grading and handling, which helps provide a better understanding of how U.S. corn is moved and controlled through export channels.



2022 Farm Sector Income Forecast
U.S. Department of Agriculture, Economic Research Service

Net farm income, a broad measure of profits, is forecast to increase by $19.5 billion (13.8 percent) from 2021 to $160.5 billion in calendar year 2022. This expected increase follows an increase of $46.6 billion (49.3 percent) in 2021 from 2020. Net cash farm income is forecast to increase by $39.4 billion (26.5 percent) to $187.9 billion in 2022, after an increase of $31.7 billion (27.2 percent) in 2021. In inflation-adjusted dollars, 2022 net farm income is forecast to increase by $10.7 billion (7.2 percent); net cash farm income is forecast to increase by $30.1 billion (19.1 percent) compared with the previous year. If realized, net farm income would be at its highest level since 1973 and net cash farm income at its highest level on record (in inflation-adjusted dollars).

Summary Findings
    Overall, farm cash receipts are forecast to increase by $105.7 billion (24.3 percent) to $541.5 billion in 2022 in nominal dollars. Total crop receipts are forecast to increase by $45.5 billion (19.0 percent) from 2021 levels to $285.5 billion. Receipts for corn are forecast to increase by $19.6 billion (27.6 percent), soybeans by $14.5 billion (29.5 percent), and wheat by $2.8 billion (23.7 percent) in 2022, accounting for much of the forecasted growth in crop cash receipts. Total animal/animal product receipts are expected to increase by $60.2 billion (30.8 percent) to $256.0 billion, following increases in receipts for all commodity categories (in nominal terms).

    Direct Government farm payments are forecast at $16.5 billion in 2022, a $9.4 billion (36.3 percent) decrease from 2021 levels. Direct Government farm payments include Federal farm program payments paid directly to farmers and ranchers but exclude U.S. Department of Agriculture (USDA) loans and insurance indemnity payments made by the Federal Crop Insurance Corporation. Much of this decline is because of lower supplemental and ad hoc disaster assistance to farmers and ranchers related to the coronavirus (COVID-19) pandemic compared with 2021.

    Total production expenses, including those associated with operator dwellings, are forecast to increase by $69.9 billion (18.8 percent) in 2022 to $442.0 billion. Nearly all categories of expenses are forecast to be higher in 2022 in nominal terms, with feed and fertilizer-lime-soil conditioner purchases expected to see the largest dollar increases.

    Farm sector equity is expected to increase by 10.6 percent in 2022 to $3.34 trillion in nominal terms. Farm sector assets are forecast to increase 10.0 percent (nominal) in 2022 to $3.85 trillion following expected increases in the value of farm real estate assets. Farm sector debt is forecast to increase 5.9 percent in 2022 to $501.9 billion in nominal terms but fall by 0.4 percent when adjusted for inflation. Debt-to-asset levels for the sector are forecast to improve from 13.56 percent in 2021 to 13.05 percent in 2022. In 2022, working capital is forecast to rise 4.7 percent relative to 2021 in nominal dollars but fall by 1.4 percent when adjusted for inflation.

Growth in Crop Receipts Forecast for 2022
Crop cash receipts are forecast at $285.5 billion in calendar year 2022, an increase of $45.5 billion (19.0 percent) from 2021 in nominal terms. Combined receipts for corn, soybeans, and wheat are forecast to increase by $37.0 billion, accounting for most of the net increase, but growth in receipts is expected for most other commodities, including fruits and nuts and vegetables and melons.

Soybean receipts in 2022 are expected to increase by $14.5 billion (29.5 percent) relative to 2021, because of forecasted growth in both prices and quantities sold. Corn receipts are forecast to increase by $19.6 billion (27.6 percent) in 2022, due to higher expected prices. Wheat receipts are forecast to increase by $2.8 billion (23.7 percent), as a large gain in prices will overshadow lower quantities sold. Cotton receipts are expected to grow $0.8 billion (10.3 percent), the result of increases in receipts for both cotton lint and cottonseed. Receipts for hay are also projected to increase by $1.9 billion (22.4 percent).

Vegetable and melon cash receipts are expected to rise by $2.2 billion (12.1 percent) in 2022 because of forecasted increases in prices. This total includes forecasted growth of $0.5 billion in potato receipts. Cash receipts for fruits and nuts are also expected to increase by $1.1 billion (3.6 percent) during the year.

Animal/Animal Product Receipts Forecast to Increase in 2022
Total animal/animal product cash receipts are expected to increase by $60.2 billion (30.8 percent in nominal terms) to $256.0 billion in calendar year 2022 relative to 2021. Growth in receipts is forecast for all major animal/animal products, with the largest percentage increases expected for chicken eggs, broilers, and milk.

Milk receipts are expected to increase by $15.9 billion (38.1 percent) in 2022, mainly due to higher forecasted prices. Cash receipts from cattle and calves are expected to increase by $13.9 billion (19.1 percent), also largely due to expectations for higher prices. Growth in prices is projected to outweigh lower quantities for hog receipts, resulting in an increase of $1.5 billion (5.5 percent) in 2022.

Broiler receipts are expected to increase by $17.4 billion (55.2 percent) in 2022, mostly due to a higher price forecast. Despite slightly lower quantities relative to 2021, expected higher prices should also drive receipts for turkeys $1.1 billion (19.0 percent) higher during the year. Cash receipts for chicken eggs are expected to more than double, with forecasted growth of $10.0 billion (115.0 percent), the result of expectations for much higher prices in 2022.

Increasing Prices Drive Growth in Cash Receipts in 2022
To better understand the factors underlying the forecast change in annual receipts from 2021 to 2022, the change is decomposed into two effects:
    a "price effect" where the change in cash receipts is projected by holding the quantity sold constant at 2021 levels and allowing prices to change to forecast 2022 levels, and
    a "quantity effect" where prices are held constant from 2021 and quantities change to forecast 2022 levels.

In 2022, increasing prices and, to a lesser extent, higher quantities sold are expected to have positive effects on cash receipts. Overall, cash receipts are forecast to increase by $105.7 billion in 2022, with an estimated positive price effect of $96.8 billion, and a projected positive quantity effect of $6.8 billion. In addition, an upward shift of $2.1 billion is from forecasts for commodities whose price and quantity effects cannot be separately determined. Price and quantity effects are forecast to be positive for both crop and livestock commodities overall.

Direct Government Farm Payments Forecast to Decrease in 2022
Direct Government farm program payments are those made by the Federal Government to farmers and ranchers with no intermediaries. Typically, most direct payments to farmers and ranchers are administered by the USDA under the Farm Bill or other authorities. Direct payments can also be from new supplemental programs authorized by Congress. Government payments do not include Federal Crop Insurance Corporation (FCIC) indemnity payments (listed as a separate component of farm income) and USDA loans (listed as a liability in the farm sector’s balance sheet). After reaching a record high of $45.6 billion in calendar year 2020, direct Government farm program payments are estimated to have decreased to $25.9 billion in 2021. They are forecast to decrease further to $16.5 billion in 2022. The overall decrease in 2021 and 2022 direct Government payments reflect lower anticipated payments from supplemental and ad hoc disaster assistance, including lower COVID-19 assistance.

    Supplemental and ad hoc disaster assistance payments in 2022 are forecast at $11.9 billion, a decrease of $7.1 billion, or 37.3 percent from 2021, primarily because of lower payments from COVID-19-related assistance programs.

        USDA pandemic assistance for producers, including the Coronavirus Food Assistance Program (CFAP), provides relief to producers whose operations are directly affected by the COVID-19 pandemic. Payments in calendar year 2022 from these USDA programs are forecast at $1.2 billion compared with $23.5 billion and $7.5 billion in 2020 and 2021, respectively.
        Non-USDA pandemic assistance—payments from the Paycheck Protection Program (PPP), administered by the Small Business Administration (SBA)—ended on May 31, 2021, and no payments are expected in 2022. Non-USDA pandemic assistance is estimated at $8.6 billion for 2021, based on October 2, 2022, data from the SBA. The PPP payments were designed to help small businesses keep their workers on the payroll through forgivable loans. Forgiven loan amounts are treated as a direct payment to farm operations.
        Other supplemental and ad hoc disaster assistance, which includes farm bill designated disaster programs, are forecast to be $10.7 billion in 2022, an increase of $7.8 billion from 2021, largely because of the recently passed Extending Government Funding and Delivering Emergency Assistance Act, which created the Emergency Relief Program (ERP) and the Emergency Livestock Relief Program (ELRP), and the assistance to distressed borrowers from the Inflation Reduction Act.

    Conservation payments from the financial assistance programs of USDA's Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) are expected to be $4.2 billion in 2022, up $635.4 million or 18.0 percent from 2021. The increase in conservation payments is due to a marginal increase in Conservation Reserve Program (CRP) enrolled acres and an increase in payments from NRCS programs.
    The Dairy Margin Coverage Program (DMC) is forecast to make $85.7 million in payments in 2022. Some payments were first triggered in August 2022, because of a drop in milk prices. Milk prices are forecast to fall further through the remainder of the 2022 calendar year.
    Farm bill commodity payments under the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs are forecast to decline by $1.9 billion, or 84 percent, in 2022 to $354 million. ARC payments are expected to be $105 million in 2022, a decrease of $12.5 million or 10.6 percent from 2021 levels. PLC payments in 2022 are expected be $248.6 million, a decrease of $1.9 billion, or 88.2 percent, from 2021 levels. ARC payments are expected to decrease in 2022 because of higher commodity prices for all covered commodities, especially corn and soybeans, in 2021 compared with 2020 levels. PLC payments are also expected to decrease in 2022 because of higher prices for all covered commodities in 2021 compared with 2020.

Production Expenses Forecast to Increase in 2022
Farm sector production expenses—including expenses associated with operator dwellings—are forecast to increase by $69.9 billion (18.8 percent) to reach $442.0 billion in calendar year 2022. This would represent the largest year-to-year dollar increase in nominal terms on record. When adjusted for inflation, production expenses are forecast to increase by 11.8 percent from 2021 to 2022, yet remain below the record-high levels of 2012–14.

Nearly all expense categories are forecast to rise in 2022 compared with the previous year, with the most significant increases in nominal terms for the following categories:
    Fertilizer-lime-soil conditioner expenses are forecast to increase by $13.9 billion (47.0 percent) to $43.4 billion in 2022.
    Feed expenses, the largest single expense category, are forecast to increase in 2022 by $11.3 billion (17.4 percent), to $76.6 billion because of higher prices for feed commodities.
    Interest expenses (including operator dwellings) are also forecast to increase in 2022 by $8.0 billion (41.0 percent) to $27.4 billion.
    Fuel and oil expenses are forecast to increase by $6.6 billion, or 47.4 percent, to reach $20.5 billion in 2022, which is the highest percentage increase among the main expense categories.



USDA: U.S. Agricultural Exports in Fiscal Year 2023
Economic Research Service

U.S. agricultural exports in fiscal year (FY) 2023 are projected at $190.0 billion, down $3.5 billion from the August forecast. This decrease is primarily driven by reductions in soybeans, cotton, and corn exports that are partially offset by gains in beef, poultry, and wheat. Soybean exports are forecast down $2.4 billion to $32.8 billion due to smaller production and increased competition from South America. Cotton exports are forecast down $1.0 billion to $6.0 billion based on lower unit values and subdued demand. Grain and feed exports are projected to decrease by $300 million to $46.2 billion, with declines in corn, sorghum, and rice exports partially offset by higher exports of wheat and feeds and fodders. The forecast for corn is down $600 million to $18.5 billion on lower volumes.

Livestock, poultry, and dairy exports are forecast to increase by $300 million to $41.4 billion, as increases in beef, poultry, and variety meat exports more than offset declines in pork and the value of dairy exports. Beef exports are up $500 million to $10.3 billion, driven by higher prices. Ethanol exports are unchanged at $4.2 billion from the August forecast and remain a record if realized. Horticultural product exports are unchanged at $39.5 billion.

Agricultural exports to China are forecast at $34.0 billion, down $2.0 billion from the August
projection, due to lower export prospects for soybeans, cotton, sorghum, and pork. China is
expected to remain the largest market for U.S. agricultural exports.

U.S. agricultural imports in FY 2023 are forecast at $199.0 billion, up $2.0 billion from the
August forecast, largely driven by higher imports of horticultural products, sugar and tropical
products, and grain and feed products. A strong dollar, while a headwind to the export forecast,
is partially responsible for the higher import demand



Senate passes legislation to avert rail shutdown; Proceeds to President Biden for his signature
Mike Steenhoek, Executive Director, Soy Transportation Coalition

This afternoon, the Senate passed legislation to avert a potential railroad strike that would have imposed significant harm on agriculture and the broader economy.  With yesterday’s passage of the bill in the House of Representatives, the measure proceeds to President Biden for his signature.

The Senate voted on three bills this afternoon related to the railroad contract negotiations:
    Approving the Tentative Agreement: 80 voted in favor; 15 opposed
    Sullivan-Cotton substitute amendment, which would have extended the negotiation period for 60 days: 26 voted in favor; 69 opposed
    Adding seven paid sick days to the tentative agreement: 52 voted in favor; 43 opposed (required 60 votes to pass)

Yesterday, the House approved the Tentative Agreement by a vote of 290 to 137.  By a vote largely along party lines (221 to 207), the House also passed the bill to add seven sick days.  Given that the Senate approved the Tentative Agreement and did not advance the bill to add seven sick days, the Tentative Agreement alone now proceeds to President Biden for his signature.

We are very pleased both the House and the Senate responded quickly to President Biden’s call for Congress to act to prevent a potential railroad strike.  Throughout the negotiation process, we did not take a side between railroads and railroad workers.  However, we clearly are on the side of the American farmer, who would have been harmed if a shutdown would have been allowed to occur.  Our preference was for the contract negotiations to be conducted and concluded by the two parties alone, but when those negotiations had reached an impasse and a shutdown was increasingly becoming a possibility, many agricultural and other organizations urged the President and Congress to intervene.

Of all the indicators defining whether a supply chain is effective, predictability and reliability are supreme.  They are even more important than the cost or speed of transportation.  If a shipper does not have the confidence that the supply chain will arrive, depart, and deliver as expected, that supply chain is by definition dysfunctional.  The large question mark that was increasingly imposed on our nation’s freight rail industry created significant anxiety that the products grown, produced, and consumed in the country may not be able to make the journey between supply and demand.  That was an unacceptable scenario for agriculture and the many industries that depend upon reliable rail service.

We are pleased our elected officials were responsive to the concerns of agriculture and others and took the necessary action to prevent this significant supply chain disruption from occurring.



NCGA Applauds Passage of Bill that Blocks Rail Strike

The Senate voted 80-15 today to pass a bill that would head off a potential rail strike that could have disrupted the movement of grain and input shipments. The vote comes a day after the House approved similar legislation.

The National Corn Growers Association (NCGA) applauded the development.

“We are extremely relieved that Congress took action to head off a strike that would have had serious consequences for America’s farmers, who are grappling with an increase in input costs and barge rates due to severe drought conditions on the Mississippi River,” said NCGA President Tom Haag. “Today’s actions are an excellent example of Congress working together to get things done on behalf of the American people.”

A deal to avert a strike appeared imminent in recent months, but a disagreement over paid sick days put the country back on the pathway to a strike, which could have begun as early as Dec. 9. Left with no other options, Pres. Biden urged Congress to act.

The bill will now head to the president for signature.



NGFA commends Congress for approving rail agreement

National Grain and Feed Association (NGFA) President and CEO Mike Seyfert issued the following statement after the Senate approved a resolution today to implement the tentative agreement brokered by the Biden administration with rail labor unions and management. The House approved the measure on Nov. 30. It now heads to President Biden’s desk for signature.
 
“NGFA members, which include more than 1,000 companies that handle U.S. grains and oilseeds, commend Congress for working in a bipartisan manner to avert a national rail shutdown. Resilient and reliable rail service is essential to the daily operations of NGFA members and is crucial to a functioning agricultural economy. We thank President Joe Biden, House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, and Senate Minority Leader Mitch McConnell for understanding the urgency required to prevent severe economic damage.
 
NGFA members partner with the railroad industry on almost 15 percent of total U.S. carloads on a rail network that moves about 1.5 million carloads of U.S. grain annually and about 1.2 million carloads of grain products, such as flour, soybean oil and meal, dried distillers grains and ethanol.
 
As an association representing a segment of the agricultural supply chain that directly interfaces with freight railroads, we will continue working with our rail industry partners, the Surface Transportation Board and lawmakers for sensible policy measures that guarantee the strength, stability and reliability of this important transportation system moving forward.”



ACE Welcomes Congressional Action to Avoid Rail Strike

Today, the U.S. Senate approved bipartisan legislation to avoid a national rail strike after the U.S. House of Representatives passed the bill Nov. 30. The bill now heads to President Biden’s desk for signature just ahead of the Dec. 9 deadline to reach an agreement before the labor union workers promised to strike.  

 “About 70-75 percent of all ethanol that is produced in the U.S. moves by railroad, and a strike would have a crippling effect on not only the producers of the fuel but also everyone downstream, from marketers to retailers and ultimately motorists who depend upon low cost and low carbon ethanol to help keep them mobile,” said Brian Jennings, American Coalition for Ethanol (ACE) CEO. “We’re appreciative that Congress quickly took up bipartisan legislation to ratify the tentative agreement between the railroads and labor unions and look forward to President Biden swiftly signing this into law to avoid the negative impacts of a strike.”



Growth Energy Statement on Senate Passage of Bill to Avert Rail Strike

Growth Energy’s CEO Emily Skor issued the following statement after the Senate approved a bill to avert a nationwide rail strike. With yesterday’s approval by the House of the same legislation, the bill now heads to President Biden’s desk for signature, meaning the threat of a strike has been eliminated for the foreseeable future:

“American ethanol producers can rest easy tonight knowing that the rail strike that’s threatened their ability to plan for the last several weeks has been successfully averted. While we’ve always supported a voluntary solution, we’re glad to see Congress and the Administration recognize the seriousness of the matter and the danger a strike posed to the American economy. Every industry would’ve been harmed but the ethanol industry is especially reliant on rail for its operations—nearly 70% of U.S. ethanol production is moved by rail, filling more than 400,000 carloads annually—so the economic harm would’ve been especially severe for our industry.

“No one wants to see American motorists cut off from a vital supply of lower-cost, lower-carbon fuels due to an avoidable rail strike. Today, thanks to the swift action by both chambers of Congress and the Biden Administration, no one will have to."



NCBA Praises Senate Introduction of Protect Farmers from the SEC Act

Today, the National Cattlemen’s Beef Association (NCBA) announced support for the Senate version of the Protect Farmers from the SEC Act, a companion bill to legislation that was previously introduced in the House of Representatives by Rep. Frank Lucas (R-OK).

“The Securities and Exchange Commission’s overly broad rulemaking has the potential to increase burdens on cattle producers by requiring data that is impossible to provide,” said NCBA Chief Counsel Mary-Thomas Hart. “NCBA is proud to support the Protect Farmers from the SEC Act because it ensures that federal regulators do not overstep their jurisdiction and it protects cattle producers from additional government red tape. We thank Senators Boozman and Braun for their focus on this issue.”

The Protect Farmers from the SEC Act excludes agriculture from reporting scope 3, or supply chain, greenhouse gas emissions under the Securities and Exchange Commission’s proposed climate disclosure rule. While the rule is aimed at large publicly traded companies, agricultural operations could be subjected to additional reporting as part of the supply chain for public restaurants and retailers.



 No RFS Growth is No Good: Soy Growers Surprised & Let Down by EPA Decision

The Environmental Protection Agency has released its draft “set” rule, which sets annual biofuel blending targets under the Renewable Fuel Standard. This announcement, including proposed Renewable Volume Obligations for 2023, 2024, and 2025, is deeply disappointing for the biofuels industry and threatens the integrity of the RFS by significantly dialing back annual increases in volume obligations.

Congress created the RFS program starting in 2005 “to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil.” However, this latest decision by EPA does not seem to support that intention and could leave farmers and biofuels industry partners who have invested in the government’s goal in the lurch.

“America’s farmers have committed to the renewable fuels industry while continuing to provide the feed and food our country and other countries must have. Billions of dollars have gone into building and growing the infrastructure needed to support this industry. And our president has made a clear commitment to mitigating climate change and lowering greenhouse gas emissions—the very tenets of the RFS,” said Brad Doyle, ASA president and soy grower from Arkansas.

“And, yet, this draft rule slams the brakes on progress being made in biofuels investment and growth. Instead of continuing to support available, low-emission plant-based fuel sources, EPA has changed course and seemingly is ignoring the major investments in and consumer demand for biomass-based diesel and other biofuels that exists right now,” Doyle continued.

Soy farmers were heartened by EPA’s 2022 volume target—which included the highest-ever number for total renewable fuels and specifically for biomass-based diesel (BBD) since the renewable fuel standard was created—and were hopeful EPA would stay the course on a rising trajectory.

This year’s new set rulemaking process is the first in which Congress no longer specifies RFS volume targets, providing EPA more flexibility in the decision. However, since 2013 EPA has been able to raise BBD requirements above the one billion gallon minimum set in statute.

EPA has made an about-face in terms of reaffirming its commitment to BBD. Even more, EPA has proposed halting any growth for advanced biofuels outside of BBD and cellulosic biofuels. The multi-year set rule was intended to provide more certainty for the biofuels industry and encourage investment and innovation. Contrarily, these very insignificant volume increases for 2023-2025 realistically could not only stifle growth but also jeopardize the existing biofuels industry.

Through a consent decree submitted by EPA and Growth Energy, EPA is required to release the final set rule by June 14, 2023. EPA will solicit public comment on the proposed rule and hold a public hearing in January.



RFS “Set” Rule Proposal Sets Course for Biofuels Growth and Stability

Today, the U.S. Environmental Protection Agency released the proposed renewable fuel volume requirements under the Renewable Fuel Standard for 2023, 2024 and 2025. The RFS has been one of the most effective energy policies in our nation’s history. The annual growth for renewable fuels like ethanol contained in today’s proposal provides stability in the marketplace and sets a course for greater consumer access to cleaner burning, homegrown, affordable fuel options at the pump.

“Today’s proposed increase in biofuel volumes is a win for drivers, a win for farmers, and a win for the environment,” stated Denny Friest, Iowa Corn Growers Association President. “The stability and certainty provided by today’s proposal sends a positive signal to corn growers and establishes a firm foundation to build on for even greater growth in higher biofuel blends through the Next Generation Fuels Act.”

For 2023, EPA’s proposal includes an implied 15 billion gallons for conventional ethanol, which increases to 15.25 billion gallons for both 2024 and 2025. EPA also followed through on proposing to restore the remaining 250 million gallons from a prior court decision for 2023.

“Today, Iowa flex fuel vehicle owners have the opportunity to fill up with E85 for as low as $1.81 per gallon, showcasing the most affordable, climate-friendly solution on the market. Cost-saving, carbon-reducing options like E85 and E15 will become even more readily available if today’s proposed volumes are finalized,” added Friest. Moving forward, ICGA will submit comments to the EPA on the proposal to ensure our farmer’s voices are heard as we continue to strive for more options of higher ethanol blends at the pump.



Clean Fuels Says RFS Proposal for 2023 and Beyond Woefully Underestimates Biomass-based Diesel

Today, Clean Fuels Alliance America criticized the Environmental Protection Agency’s proposed Renewable Fuel Standard volumes for 2023 and beyond for undercutting investments in biodiesel and renewable diesel capacity. The minor increases for biomass-based diesel volumes in 2023, 2024 and 2025 are below the industry’s existing production and ignore the clean fuels industry’s significant investments in new capacity. The volumes provide no additional space for sustainable aviation fuel and short-circuit the nation’s goals to cut carbon emissions.

“EPA’s overdue set proposal significantly undercounts existing biomass-based diesel production and fails to provide growth for investments the industry has already made in additional capacity, including for sustainable aviation fuel. The volumes EPA is proposing for 2023, 2024 and 2025 ignore the more than 3 billion gallons currently in the market and fail to take into account the planned growth of the clean fuels sector,” said Clean Fuels Vice President of Federal Affairs Kurt Kovarik.

EPA’s data from the RFS program show that the U.S. market reached 3.1 billion gallons of biomass-based diesel in 2021 and already 2.9 billion gallons through October 2022, with two months still to go. The Energy Information Administration’s Short Term Energy Outlook, which informs EPA’s decisions on annual RFS volumes, currently projects a 500-million-gallon increase in biodiesel and renewable diesel consumption for 2023. EIA has also projected 2.4. billion gallons of added renewable diesel capacity coming online by 2024 and calculated another 1.8 billion gallons in announced planned capacity.

“The biodiesel and renewable diesel industry has already made considerable investments in production capacity and distribution infrastructure that will come online by 2025. The soybean and canola industries have invested more than $4 billion to bring additional feedstock capacity online over the next several years,” Kovarik continued. “EPA’s proposed biomass-based diesel volumes undercut those investments.”

Clean Fuels appreciates EPA’s final rule creating a pathway to produce renewable diesel, jet fuel, heating oil, naphtha, and liquefied petroleum gas (LPG) from canola oil, which will generate even more biomass-based diesel and advanced biofuel gallons for the program. The approval enables a more diverse feedstock supply for the clean fuels industry. But the potential growth is not accounted for in the proposed volumes.

Clean Fuels supports EPA’s proposed alternative compliance method to document points of origin for used cooking oil supplies under separated food waste plans. This method will allow small producers to continue using a low-carbon feedstock and rely on documentation from used cooking oil aggregators.

“The clean fuels industry is meeting and exceeding all of the statutory factors that EPA is supposed to consider when setting volumes,” Kovarik added. “Our industry’s growth can generate new jobs and increase economic opportunities for growers, fuel producers and other economic sectors. Increasing production of clean fuels improves U.S. energy security, lowers diesel fuel prices, and generates carbon and emission reductions today that are necessary to meet future national environmental goals.”

Recently, Clean Fuels published a new study, “Economic Impact of Biodiesel on the U.S. Economy 2022,” conducted by LMC International. The study finds that based on 2021 market data, the biodiesel and renewable diesel industry produced 3.1 billion gallons and generated $23.2 billion in economic activity, while supporting 75,200 jobs paying $3.6 billion in annual wages in the United States. For every 100-million-gallon increase in domestic clean fuel production, the direct, indirect and induced economic activity increases by $1.09 billion and U.S. jobs grow by 3,185. The largest economic and employment benefits occurred in the farming, oilseed processing, and fuel production sectors.

The study further calculates that producing 6 billion gallons of clean fuels in the United States would increase overall economic activity from the current $23.2 billion to $61.6 billion and support 187,003 jobs earning $8.8 billion in wages. The construction of additional capacity would increase economic activity by an added $4.3 billion and support an additional 144,500 related temporary jobs earning $5.8 billion in wages.

When setting RFS volumes, EPA must consider the infrastructure and rate of future commercial production for advanced biofuels like biodiesel, renewable diesel and SAF. According to the Energy Information Administration, biodiesel and renewable diesel capacity is already 750 million gallons higher in 2022 compared 2021. EIA’s Short Term Energy Outlook projects availability of 3.9 billion gallons of biodiesel and renewable diesel in 2023. Further, USDA’s successful Higher Blends Infrastructure Incentive Program has already supported infrastructure investments for an additional 1 billion gallons of biodiesel. Congress has made a strong commitment to continue infrastructure grants through 2030.



EPA Proposes Annual Growth in Renewable Fuel Volume Requirements

The U.S. Environmental Protection Agency today released proposed renewable fuel volume requirements under the Renewable Fuel Standard for 2023, 2024 and 2025, proposing annual growth in volumes. The RFS requires annual volumes of renewable fuels, such as ethanol, be used in the fuel supply to reduce emissions, expand and diversify the fuel supply, improve energy security and lower costs.

“We are pleased with EPA’s forward-looking approach of annual increases in the proposal,” said National Corn Growers Association President Tom Haag. “EPA clearly recognizes that renewable fuels like ethanol play a critical role in cutting greenhouse gas emissions, increasing U.S. energy independence and providing long-term relief to consumers at the pump. With continued pressure on energy security and costs and the need to accelerate carbon emission reductions, biofuels can contribute even more, and we will make that case to EPA for the final volumes.”

For 2023, EPA’s proposal includes an implied 15 billion gallons for conventional ethanol, which increases to 15.25 billion gallons for both 2024 and 2025. EPA also followed through on proposing to restore the remaining 250 million gallons from a prior court decision for 2023. EPA did not propose a specific update for lifecycle GHG assessments of biofuels but instead will take further comment and review options for a future update. Such an update is overdue and necessary to accurately reflect the shrinking carbon footprint of today’s ethanol, and NCGA will continue urging EPA to adopt the Department of Energy’s data-driven assessment.

The 2023-2025 proposal is EPA’s first RFS volume rule based on qualitative environmental, economic and agriculture factors listed in the statute, rather than specific volumes in law, which afforded EPA greater latitude in proposing these annual requirements within certain guardrails. As such, EPA builds on the strong baseline of the 2022 RFS volumes, which included the full statutory 15 billion gallons for ethanol, providing for future growth with this proposal.

NCGA will submit detailed comments to EPA on the proposal, and EPA has agreed to finalize the RFS volumes by June 2023.



EPA Draft RFS Rule Sets Solid Foundation, but Needs to Better Account for Rapid Growth in Advanced Biofuels

Today EPA released the long-awaited draft rule to set Renewable Fuel Standard (RFS) blending levels for 2023 through 2025. The draft rule is the first time EPA is not bound by Congressionally required volumes. While EPA increased the prior blending levels for conventional biofuels, the proposed increase for the advanced biofuels blending level falls short of what is already occurring in the marketplace.

“Today is our first peek into the new era of the RFS where EPA has more discretion,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “As the finalized rule will set the foundation for this new era, it is more important than ever for EPA to get it right. They must lean into expanding the use of low carbon biofuels as Congress intended. The RFS should be, and always was intended to be, a market moving mechanism. From that viewpoint, today’s draft rule sets a solid foundation for conventional biofuels like ethanol. However, IRFA believes the final rule must better account for the rapid increase in advanced biofuels like biodiesel and renewable diesel. IRFA will work with EPA during this review process for improvements that will benefit consumers, farmers, and the environment.”

Conventional Foundation
For the second year in a row, EPA has proposed setting the conventional blending level at 15 billion gallons in 2023. In addition, EPA added 250 million supplemental gallons in 2023, following through on its commitment to comply with a federal court order to restore gallons illegally waived from the program in 2016. For 2024 and 2025, EPA moves the conventional baseline to 15.25 billion gallons, the first time it is proposed to be higher than 15 billion gallons.

Advanced Biofuels
In addition to biodiesel, renewable diesel production has been accelerating rapidly in recent years and the EPA’s proposal does not keep up – let alone act as a market moving mechanism. The Department of Energy’s Energy Information Agency (EIA) projects the use of biodiesel and renewable diesel to hit 3.9 billion gallons in 2023. Further, hundreds of millions of gallons of new production capacity are scheduled to come on line over the next 3 years. However, EPA set the biomass-based diesel blending target at only 2.82 billion gallons in 2023, rising to 2.95 billion gallons in 2025. Not only does this not sufficiently incent increased biodiesel use, but the new renewable diesel consumption driven by state policies, such as California, will generation RFS credits (known as RINs) that could flow down into the conventional pool and displace ethanol blending.

E-RINs
For the first time, EPA is also proposing to allow RFS credits to be generated for electricity produced from biomass. While IRFA is supportive of “eRINs,” it will closely study this proposal to ensure that eRINs are accretive to the RFS goals and won’t merely cannibalize other renewable fuels. Further, ensuring eRINs adhere to the same strict standards of generation and traceability as other renewable fuels is a must for fairness and equity in the program. The proposal to let automakers generate eRINs makes no sense. This is a Renewable Fuel Standard. The eRINs should be tied to the production of renewable electricity from a biomass feedstock. That is the law and that is what will allow farmers and ranchers a fair opportunity to compete in this new area.



RFA: Proposal for 2023-2025 RFS Volumes Creates Pathway for Sustainable Growth

Today’s proposal from the U.S. Environmental Protection Agency for 2023-2025 Renewable Fuel Standard volumes creates a clear pathway for sustainable growth in the production and use of low-carbon renewable fuels, according to the Renewable Fuels Association.

“EPA’s proposed rule solidifies a role for the Renewable Fuel Standard in future efforts to reduce carbon emissions and enhance our nation’s energy security,” said RFA President and CEO Geoff Cooper. “Once finalized, this rule will significantly accelerate growth and investment in the low-carbon renewable fuels that will help decarbonize our nation’s transportation sector, extend domestic fuel supplies, and bolster the rural economy. By including three years’ worth of RFS volumes, EPA’s proposed rule will finally provide certainty and stability for the entire supply chain. EPA Administrator Michael Regan put the RFS program back on track with the 2022 volume obligations, and today’s proposal builds upon that solid foundation. RFA thanks Administrator Regan and the Biden administration for continuing to make good on their commitment to grow the marketplace for lower-carbon, lower-cost renewable fuels.”

EPA proposes to set the 2023 total RFS requirement at 20.82 billion gallons (bg), with 5.82 bg coming from advanced biofuels and 15 bg from conventional renewable fuels like corn ethanol. In addition, EPA proposes to add a supplemental volume of 250 million gallons on top of the 2023 standards to address a 2017 decision from the D.C. Circuit Court in a case brought against EPA by RFA and other leading farm and biofuel groups.

For 2024, EPA proposes a total RFS volume of 21.87 bg, comprising 6.62 bg of advanced biofuel and 15.25 bg of conventional renewable fuels. In 2025, EPA proposes to require 22.68 bg of total renewable fuel, including 7.43 bg of advanced biofuel and 15.25 bg of conventional renewable fuel.

Cooper noted that these renewable volume obligations also would stimulate rapid growth in E15 and E85, making it that much more important that a resolution is found for allowing year-round sales of E15, especially with new legislation filed this week with the support of RFA, the American Petroleum Institute and others.



ACE Reaction to EPA’s Proposed RFS Set Rule

Today, the U.S. Environmental Protection Agency (EPA) issued proposed multi-year Renewable Volume Obligations (RVOs) for the 2023-2025 Renewable Fuel Standard (RFS) compliance years. The proposal also implements the remaining 250 million gallons in remanded volumes by the DC Circuit Court in 2017. American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following reaction:

“This proposed rule is a critical opportunity for EPA to leverage the greenhouse gas reducing benefits of increasing biofuel blending targets by getting the RFS back on track, and we’re pleased the Agency is taking steps in the right direction by setting conventional biofuel blending at 15 billion gallons or more for 2023 through 2025 on paper, in addition to including the 250 million gallons of supplemental volume to carry out the 2017 DC Circuit Court order. Multi-year targets help provide clarity the market needs to lean into climate benefiting transportation fuels such as ethanol. The Inflation Reduction Act is poised to boost investments in clean fuel technologies that support the Agency increasing the use of clean fuels like ethanol through RFS targets moving forward.

“Our comments to the proposal will emphasize the millions in biofuel infrastructure investments being made through the USDA that underscore the opportunity for expanded RFS targets for ethanol, as well as the long overdue need for EPA to formerly adopt the latest GREET model to determine the lifecycle GHG emissions of biofuel which continues to trend lower.”



Growth Energy Applauds EPA’s Proposal Setting Continued Growth for Renewable Fuels

Today, Growth Energy CEO Emily Skor welcomed the U.S. Environmental Protection Agency’s (EPA) proposed “Set” rulemaking on the Renewable Fuel Standard.

“We’re grateful to President Biden and EPA Administrator Regan for keeping clean energy on an upward trajectory that will move America closer to a net-zero future” said Skor. “As we saw again this summer, biofuels remain the single best tool available to shield motorists from volatile global oil prices and rapidly decarbonize the transportation sector.

“We are greatly encouraged by EPA’s strong proposal and appreciative of Administrator Regan’s support for the growing role ethanol continues to play in decarbonizing the transportation sector, now and into the future.”

The agency’s draft proposal sets total renewable fuel 2023 volumes at 20.82 billion gallons, with 15 billion gallons implied conventional biofuel, 5.82 billion gallons of advanced biofuel, and 720 million gallons of cellulosic biofuel, and includes 250 million additional gallons in response to the ACEI litigation from 2017. For 2024, the proposal raises implied conventional biofuel volumes to 15.25 billion gallons, advanced biofuel to 6.62 billion gallons, and cellulosic biofuel to 1.42 billion gallons. EPA’s proposal sets 2025 gallons at 15.25 billion gallons for implied conventional biofuel, 7.43 billion gallons for advanced, and 2.13 billion gallons for cellulosic biofuel.

"We’re also appreciative that the proposal restores the final 250 million gallons of biofuel demand that had been illegally waived in the agency’s 2016 rule – a long-overdue fix that began with 2022 volumes,” added Skor. “Moving forward, our opportunities for growth across both conventional and advanced biofuels are linked, so it’s important that EPA’s volumes must reflect industry growth and innovation – especially when it comes to the rapid expansion of renewable diesel."

“We also must ensure that the final rule preserves the integrity of the RFS when it comes to new renewable fuel sources, like those tracked by e-RINs. All new pathways must include safeguards to address double-counting, fraud risks, and other requirements to ensure that truly renewable energy is being harnessed to fuel our transportation needs.

“At the same time, the agency must clear the backlog of pathway approvals for advanced and cellulosic biofuels, including cellulosic biofuels from kernel fiber and advanced biofuels from corn oil produced at ethanol wet mills, and better leverage this opportunity to account for all of the innovation taking place in the renewable transportation industry. That will require updated modeling to reflect the best available science on low-carbon ethanol, including benefits of carbon capture technology and other innovations biofuel plants are deploying in the production of Sustainable Aviation Fuel.

“We look forward to working with agency as it finalizes this proposal so that we're tapping the full potential of the RFS and meeting EPA’s final rule deadline included under a consent decree with Growth Energy.  

“America’s biofuel producers and our farm partners are ready to lead the charge on climate and energy solutions, and a firm commitment to growth will offer regulatory certainty and predictability in the years ahead.”



AFBF Welcomes Increases in Renewable Fuel Standard

American Farm Bureau Federation President Zippy Duvall commented today on proposed increases to the Renewable Volume Obligation for 2023, 2024 and 2025.

“AFBF applauds EPA’s proposed increases in renewable volumes under the Renewable Fuel Standard (RFS).  Long-term stability and a clear indication of obligations for the next three years are welcomed along with the potential of additional producers participating under the RFS.

“Renewable fuels have been a tremendous success story for the country and our rural economy. The RFS has reduced America’s dependence on foreign crude oil, reduced greenhouse gas emissions, increased farm income and provided good-paying jobs in rural America. We look forward to thoroughly reviewing EPA’s proposal.”



USDA Announces December 2022 Lending Rates for Agricultural Producers

The U.S. Department of Agriculture (USDA) announced loan interest rates for December 2022, which are effective Dec. 1, 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 December 2022 are as follows:
    Farm Operating Loans (Direct): 5.125%
    Farm Ownership Loans (Direct): 5.000%
    Farm Ownership Loans (Direct, Joint Financing): 3.000%
    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. To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.

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): 5.625%
Farm Storage Facility Loans:
        Three-year loan terms: 4.375%
        Five-year loan terms: 4.125%
        Seven-year loan terms: 4.125%
        Ten-year loan terms: 4.000%
        Twelve-year loan terms: 4.125%
    Sugar Storage Facility Loans (15 years): 4.250%

Pandemic and Disaster Support
FSA broadened the use of the Disaster Set Aside (DSA), normally used in the wake of natural disasters, to allow farmers with USDA farm loans who are affected by COVID-19, and are determined eligible, to have their next payment set aside. Because of the pandemic’s continued impacts, producers can apply for a second DSA for COVID-19 or a second DSA for a natural disaster for producers with an initial DSA for COVID-19. The COVID-DSA is available for borrowers with installments due before Dec. 31, 2022, and whose installment is not more than 90 days past due when the DSA request is made. The set-aside payment’s due date is moved to the final maturity date of the loan or extended up to 12 months in the case of an annual operating loan. Any principal set-aside will continue to accrue interest until it is repaid. Use of the expanded DSA program can help to improve a borrower’s cashflow in the current production cycle.

FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.

Inflation Reduction Act Assistance for Distressed Producers
On August 16, President Biden signed the Inflation Reduction Act (IRA) into law. It is a historic, once-in-a-generation investment and opportunity for the agricultural communities that USDA serves. Section 22006 of the IRA provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. USDA has allocated up to $1.3 billion for initial steps to help these distressed borrowers. This includes both automatic and case-by-case assistance. For more information producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.

More Information
Producers can explore available options on all FSA loan options at fsa.usda.gov or by contacting their local USDA Service Center.



American Angus Auxiliary rounds out 70-year celebration

For 70 years, the American Angus Auxiliary has offered Angus enthusiasts the opportunity to work together to provide educational, promotional and social programs and activities. Each year, Auxiliary members gather at Angus Convention to educate members, discuss future efforts and raise funds for Angus generations to come. The Auxiliary held their Annual Meeting, Miss American Angus competition and Auxiliary Breakfast in conjunction with the 2022 Angus Convention in Salt Lake City, Utah.

“Angus Convention is a great way for the Auxiliary directors, committee chairs, past presidents and membership to gather annually to look back at our year of progress,” said Deanna Hofing, American Angus Auxiliary 2021-2022 president. “It allows us to connect with our members, establish new friendships and socialize with the Angus industry.”
During the Auxiliary Annual Meeting, members elected new directors, officers and voted on changes to by-laws said Hofing.

A complete list of the 2022-2023 officers and directors follows.
President – Julie Conover, Missouri
President Elect – Karla Knapp, Iowa
Secretary/Treasurer – Tonya Rae Theis, Kansas
Advisor – Deanna Hofing, Indiana
Region 1 – Cindy Worthington, California
Region 2 – Megan Ahern, Texas
Region 3 – Stacy Erdmann, North Dakota
Region 4 – Christy Perdue, North Carolina
Region 5 – Rebecca Knott, Indiana
Region 6 – Valerie Trowbridge, Pennsylvania

In the Miss American Angus competition, five young ladies underwent a written quiz, an interview and presented a speech to a panel of judges. This year’s contestants included Allison Davis, Tennessee; Alexis Koelling, Missouri; Lizzie Schafer, Illinois; Kelsey Theis, Kansas; and Hailey Jentz, Wisconsin. The 2022 Miss American Angus, Mary Wood, concluded her reign by crowning Kelsey Theis as her successor.

Through the past year of the 70th anniversary, the Auxiliary honored their work and the dedication of women before them to strengthen their organization and its devotion to Angus youth. In final celebration, this year’s Auxiliary highlight was the auctioning of a CJ Brown painting, which included depictions of 29 notable Angus cow families and all 68 past presidents. The original painting sold for $8,000, along with five custom artist proofs which totaled $5,100.

“Our 70th year was a fantastic time to celebrate the Auxiliary’s achievements. I am thankful, grateful and humbled by having the opportunity to be the 70th anniversary president,” Hofing said. “This year was the first time we participated in the National Junior Angus Show tailgate party, the first time we were able to provide $20,000 in scholarships and the first year of the Miss American Angus advocacy program.”

Looking forward, the Auxiliary plans to continue providing juniors ample learning and leadership opportunities in the future.

“The Auxiliary has a bright future with the ladies who are now leading and will lead in future years,” Hofing said. “As times and culture changes, the Auxiliary will have to change as well to stay relevant and forward thinking for the juniors.”

The 2022 Angus Convention was held Nov. 4-7, 2022 in Salt Lake City, Utah. For more news and information about Angus Convention, visit www.angusconvention.com. To learn more about the American Angus Auxiliary, visit www.angusauxiliary.com/.