Wednesday November 30 Ag News

 NEBRASKA’S LEADING ECONOMIC INDICATOR FALLS AGAIN IN OCTOBER

Nebraska’s leading economic indicator fell again in October, according to the most recent report from the University of Nebraska–Lincoln. The indicator, designed to predict economic activity six months into the future, dropped 0.12%.

“The leading indicator has dropped in four of the past six months, suggesting that there will be no growth in the Nebraska economy in early 2023,” said economist Eric Thompson, director of the Bureau of Business Research, department chair and K.H. Nelson Professor of Economics.

The six components of Nebraska’s leading economic indicator are business expectations, building permits for single-family homes, airline passenger counts, initial claims for unemployment insurance, the value of the U.S. dollar and manufacturing hours worked.

Four components of the leading indicator worsened during October. Initial claims for unemployment insurance rose in a sign of softening in the Nebraska labor market. The value of the U.S. dollar also rose.

“A higher value for the U.S. dollar can make it more difficult for Nebraska businesses to match the prices of international competitors,” Thompson said.

Building permits for single-family homes dropped in October on a seasonally adjusted basis.

“Higher interest rates will continue to impact activity among home builders,” Thompson said.

Airline passenger counts were the final declining component. Airline passenger counts serve as a broad-based economic indicator, reflecting both consumer and business confidence.

The full report and a technical report describing the indicators are available at the Bureau of Business Research website, https://bbr.unl.edu.



Agoro Carbon Alliance and Graze Master Group Help Ranchers Take Advantage of Carbon Market Opportunities

Agoro Carbon Alliance and Graze Master announced a partnership to help farmers and ranchers cash in on carbon market opportunities.

With sustainability and profitability top of mind for farmers and ranchers, having trusted advisors to help navigate the carbon market and implement practices helps add farm revenue and protect the land. Producers who work with Agoro Carbon and Graze Master will receive support in implementing conservation practices that sequester carbon and contribute to the ranch’s bottom line.

Under the partnership, Graze Master will connect farmers and ranchers to carbon contracts offered by Agoro Carbon. The pair will then work closely with farmers and ranchers throughout the life of the contract to support implementation of practice changes and maximize carbon credit earning potential.

“Our farmer and rancher partners have a unique opportunity to work alongside Graze Master as they incorporate or increase sustainability practices into their operations,” said Elliot Formal, CEO of Agoro Carbon Alliance. “Our priority is to invest in channel relationships that benefit the farmer or rancher, and in Graze Master we’ve found an invaluable partner.”

Farmers and ranchers can expect tailored guidance from a team of Graze Master advisors as well as Agoro Carbon agronomists. Whether it’s rotational grazing, nutrient management, increasing biodiversity or other practices, farmers and ranchers will receive expert advice on which conservation practices best fit each of their acres.

The addition of these practices provide an additional revenue stream through carbon sequestration as well as valuable marketing opportunities and a long-term investment in soil health to support farm and ranch profitability for generations to come.

“It’s time to branch out to make the positive impact we want for agriculture on both the local and global scale,” said Del Ficke, Graze Master Group cofounder. “There are several carbon company partnership opportunities available, but Agoro Carbon demonstrated a high level of expertise and unmatched commitment to ensure producers’ success. They are a dedicated carbon company that only strives to increase carbon sequestration, with a particular focus on pasture and rangeland acres.”

Editors Note:  
If you’re attending the Nebraska Ag Expo next week, you can stop by the Agoro Carbon booth in Pavilion 3. Larry Hafer, Agoro Carbon Alliance National Sales Director, and Del Ficke, Graze Master Founder and Agoro Carbon Channel Partner, will be present and available at the booth. You can also hear the latest by joining their ExpoEDU Speaker Sessions:
1)    Straight Talk About Carbon: common misconceptions about carbon, benefits and costs associated with these practice changes and good questions to ask before proceeding with a carbon company.
        Tuesday, 12/6, at 12-12:45 p.m. with Larry Hafer
2)    Carbon Opportunities for Cattle Producers: how cattle producers can be rewarded for sustainable practice changes like adding biodiversity, nitrogen management and grazing management.
        Thursday, 12/8, at 11-11:45 a.m. with Del Ficke

To learn more about carbon farming and opportunities available for farmers, visit www.agorocarbonalliance.com.



Fischer: Mexico’s Ban on White Corn Is Wrong

Today, U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement after the government of Mexico suggested they will not negotiate on reversing a ban on U.S. genetically modified white corn:

“Any attempt by Mexico to ban imports of U.S. genetically modified white corn is wrong. It also goes against basic science.

“The Biden Administration must make clear that there can be no flexibility here.

“Mexico already agreed to the USMCA – a ban would directly contradict that agreement. Failure to enforce trade agreements with our allies would undermine ag innovation for years to come.”



Iowa Groups Come Together for 'Lend A Ham' Event

For the sixth year, Iowa pork producers and Fareway joined together to prepare and deliver hearty breakfast meals to adults experiencing homelessness in the Des Moines area. The effort, called Lend a Ham, takes place on Giving Tuesday each year, and serves clients of Central Iowa Shelter & Services (CISS) in Des Moines.

As Iowa Secretary of Agriculture Mike Naig described it: “It’s a partnership of farmers and a great Iowa company that is providing meals to more than 300 Iowans, and that’s amazing.”

“Giving to our communities is one of our passions,” said Iowa pig farmer Kevin Rasmussen of Goldfield. Rasmussen is president of the Iowa Pork Producers Association.

“The shelter is doing amazing things for its clients by working with the community to engage so many to volunteer and help out,” said Jeff Cook, vice president of market operations at Fareway. “At Fareway, we’re proud to be a part of the initiative and annual tradition on Giving Tuesday.”

Melissa O’Neil, CEO of CISS, said CISS relies on collaborations such as this to bring new volunteers to its efforts. For many that attend the event to help, this is the first time they’ve been involved in a CISS activity, and it shows them ways they can make a difference for Iowans in need. “As the months get colder, we need more volunteers, especially in January and February,” she said.

Not new as volunteers in helping to serve the meals were Iowa Governor Kim Reynolds and Secretary of Agriculture Naig. Both have attended past Lend a Ham events, helping to serve CISS clients.

The food donations for the event come through Fareway and many of their suppliers. Even though you may have prepared hearty meals for family and friends through the holidays, those donations included 100 lbs. of bacon, 50 lbs. of sausage patties, 120 lbs. of eggs, 48 packages of hashbrowns, 85 loaves of cinnamon raisin bread, 240 lbs. of oranges, 200 lbs. of apples, 12 cans of coffee, more than 750 packets of hot cocoa, 500 individual servings of orange juice, 500 individual servings of milk, and more than 500 bottled waters.

 

Preventing Rail Service Disruptions Maintains Competitiveness of Iowa Soybean Farmers

Soybean farmers are expressing appreciation for federal legislation aimed at averting a potential railroad strike. As a critical transportation component for U.S. grown commodities, disruptions to rail service pose severe consequences to the agriculture industry and broader economy.
 
The bipartisan resolution (H.J. Res. 100) passed today in the U.S. House of Representatives adopts a tentative labor agreement negotiated by rail carriers and rail union labor representatives nearly three months ago. However, the threat of rail stoppage or slowdown remains until the action is passed by the Senate and signed by President Biden.
 
Iowa Soybean Association President-Elect Suzanne Shirbroun, a soybean grower from Farmersburg, issued the following statement:
 
“Agriculture requires a predictable and reliable supply chain to meet growing demand. We are thankful for today’s action taken by House lawmakers to prevent disruptions to rail service. Transporting inputs and commodities like fertilizer and Iowa-grown soybeans in an efficient and consistent manner has a direct impact on farmer profitability and our ability to provide high-quality protein both domestically and abroad.
 
“Soybeans moving by rail are destined for export position, and to a certain extent, domestic crushing. Given the significant volume of U.S. soybeans utilizing rail service to reach these destinations, keeping this mode of transportation at full operation remains in the best interest of agriculture stakeholders, consumers, and the economy. While we are optimistic and supportive of the actions taken by Congress to maintain service during this critical time of year, ISA encourages the Senate to move swiftly in their consideration of this legislation.”
 
According to the Association of American Railroads, railroads transport approximately 1.5 million carloads of grain annually – including 340,000 carloads of soybeans. In addition, 248,000 carloads of processed soybeans (primarily soybean meal and soybean oil) are transported each year.



NCGA: Congressional Vote on Rail Strike a Welcome Development

The U.S. House of Representatives voted today to block a national rail strike that would have dire consequences for the nation’s economy. The vote comes as the country continues to struggle with supply-side issues and problems with key transportation hubs, including low-water levels along the Mississippi River.

The National Corn Growers Association said the vote was a welcome development.

“Rail is crucially important to America’s corn growers, who rely on it to ship grains and fertilizer,” said NCGA President Tom Haag. “We are pleased to see that Congress is taking the necessary action to ensure that rail service continues to operate.”

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 House passed a separate bill that would give rail workers seven sick days. Both bills now move to the Senate. The first is expected to pass. The fate of the second is unclear.



Growth Energy Statement on House Approval of Legislation to Avert a Potential Rail Stoppage

Growth Energy’s CEO Emily Skor issued the following statement after the House of Representatives passed a bill to avert a nationwide rail strike:

“Nearly 70% of U.S. ethanol production is moved by rail – more than 400,000 carloads annually. No one wants to see American motorists cut off from a vital supply of lower-cost, lower-carbon fuels so we’re glad to see Congress take the threat of a rail strike seriously and urge the Senate to work quickly to adopt this legislation. The sooner the bill is passed, the sooner our industry can confidently get back to work for American consumers without having to worry about a deeply disruptive, and wholly avoidable rail strike."  



 U.S. Grains Council Applauds Railway Decision

Today, the House voted to ratify a bill between rail companies and labor unions granting rail workers additional sick-leave benefits, aiming to prevent a strike that would negatively impact U.S. supply chains and prevent an economic downturn.

The House approved emergency resolution, H.J.Res. 100, to implement the tentative agreement as brokered by the Biden administration with the rail labor unions and the operators. The resolution will now go to the Senate for consideration. It will need 60 votes to pass the Senate before arriving at President Biden’s desk for his signature.

In a statement today, the U.S. Grains Council offered:

“The U.S. railway system is vital to movement of grains and co-products to export markets, and the U.S. Grains Council believes the federal government, the railroads and the private sector should work together to assure no shutdown occurs,” said Ryan LeGrand, U.S. Grains Council president and CEO. “Ratifying the tentative agreements already in place is a step in the right direction to coming to a solution agreeable to all parties.”



NGFA, ag groups, urge Congress to pass rail agreement

The National Grain and Feed Association (NGFA) and more than 200 other members of the Agricultural Transportation Working Group today urged Congress to pass legislation to avert a national rail shutdown.

President Joe Biden issued a statement on Nov. 28 calling on Congress to pass legislation immediately to adopt the tentative agreement reached between railroad unions and management in September. House Speaker Nancy Pelosi announced the House would consider legislation today.

In a Nov. 30 letter to congressional leaders, the agricultural groups noted that a rail strike or lockout combined with existing challenges in the U.S. transportation system would have harmful consequences for the agricultural and broader U.S. economies.

“We urge Congress to deliver a bipartisan bill to the president’s desk well in advance of Dec. 9 at 12:01 am when a strike or lockout could occur,” the agricultural groups noted. “As experienced in September, rail services are anticipated to begin winding down approximately one week in advance of Dec. 9. We thank you for your responsiveness to this imminent supply chain issue.”

Negotiating parties reached a tentative agreement in time to avert a rail strike or lockout in September, but since then, some railroad unions have voted against ratification. NGFA and other stakeholders have urged Congress to intervene before the “cooling-off” period ends on Dec. 9.

Rail moves about 25 percent of all U.S. grain, which is about 1.5 million carloads. Rail also moves about 1.2 million carloads of grain products, such as flour, soybean oil and meal, dried distillers grains and ethanol.



NCBA Thanks Biden Administration for Actions to Avoid Rail Disruptions

Today, the National Cattlemen’s Beef Association (NCBA) recognized the Biden Administration for taking quick action to avoid rail disruptions.

“On behalf of America’s cattle producers, we thank President Biden and Secretary Vilsack for their action to prevent a disruption in critical rail service across the country. We are also pleased to see bipartisan leaders in Congress working together to address this issue and protect our supply chains,” said NCBA CEO Colin Woodall. “We urge Congress to quickly pass the tentative agreement, which enforces the Presidential Emergency Board’s recommendations from September and ensures reliable rail service moving forward.”

Cattle producers rely on rail service to transport essential feed, fuel, and fertilizer.



NMPF Calls on Congress to Act to Avert Dairy-Devastating Rail Strike
President and CEO Jim Mulhern

“Congress needs to take immediate action to avert a nationwide rail strike that would damage dairy producers and deprive consumers of critical nutrition. Dairy is a 24/7 industry producing a highly perishable commodity. Any disruption of national transit networks not only keeps products from moving efficiently to markets; it deprives farmers and their processing cooperatives of everything from the feed they need for their animals to the supplies needed to continue production.

“A rail strike also would bring chaos to agricultural supply chains, as its ripple effects on trucking and other industries would complicate transport of goods everywhere from grocery stores to export markets, all the while adding another cold blast of inflation to consumer expenses this winter as products inevitably become scarce.

“With a strike looming in mere days, now is the time to act. We urge Congress to make prevention of this strike today’s top priority.”



NFU Statement on House Action Regarding Rail Disputes

Today, National Farmers Union (NFU) President Rob Larew issued the following statement in response to House consideration of H.J. Res – 100 regarding rail disputes:

“A disruption in rail access would have devastating impacts on agricultural supply chains across the country and today’s House action is a positive step toward keeping that chain moving,” said NFU President Rob Larew. “Farmers and ranchers have faced unprecedented uncertainty in the last few years. Further disruptions in an already fragile system would be another hard blow to family farmers. We urge Congress to take swift action to keep our rail lines running.”



Most Fertilizer Prices Slightly Lower, UAN Higher

Retail fertilizer prices continue to hover around mostly steady, according to prices tracked by DTN for the third week of November 2022. This week six of the eight major fertilizers are lower while two are higher compared to a month earlier.

Of the six fertilizers, they were all just slightly lower compared to last month. DTN designates a significant move as anything 5% or more. DAP had an average price of $927/ton, MAP $972/ton, potash $841/ton, urea $802/ton, 10-34-0 $753/ton and anhydrous $1,419/ton.

The remaining two fertilizers were slightly more expensive looking back to last month. UAN28 had an average price of $583/ton while UAN32 was at $681/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.87/lb.N, anhydrous $0.87/lb.N, UAN28 $1.04/lb.N and UAN32 $1.06/lb.N.

Most fertilizers continue to be higher in price than one year earlier, although two are now slightly lower. 10-34-0 is now 1% lower while urea is 8% less expensive than one year ago. UAN28 is 1% higher, UAN32 is 3% more expensive, MAP is 6% higher, both potash and anhydrous are 9% more expensive and DAP is 12% higher compared to last year.



Weekly Ethanol Production for 11/25/2022

According to EIA data analyzed by the Renewable Fuels Association for the week ending November 25, ethanol production pared back 2.2% to 1.018 million b/d, equivalent to 42.76 million gallons daily. Production was 1.6% lower than the same week last year and 3.0% below the five-year average for the week. The four-week average ethanol production declined 0.6% to 1.030 million b/d, equivalent to an annualized rate of 15.79 billion gallons (bg).

Ethanol stocks rose 0.5% to a 12-week high of 22.9 million barrels. Stocks were 13.0% more than a year ago and 6.4% above the five-year average. Inventories built in the Midwest (PADD 2) but thinned across the other regions.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, ticked 0.1% down to 8.32 million b/d (127.50 bg annualized). Demand was 5.4% less than a year ago and 4.6% below the five-year average.

Refiner/blender net inputs of ethanol increased 0.6% to 891,000 b/d, equivalent to 13.66 bg annualized. Net inputs were 0.9% higher than a year ago and 2.2% above the five-year average.

Imports of ethanol arriving into the West Coast were 25,000 b/d, or 7.35 million gallons for the week. This marks the first imports in 6 weeks and the sixth time this year that ethanol was imported. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of September 2022.)



Ricketts Issues Statement in Support of Federal Legislation for Permanent, Nationwide E15

Today, Senators Fischer and Sasse, along with a bipartisan set of 11 other senators, introduced the Consumer and Fuel Retailer Choice Act.  If enacted, the bill would allow for the permanent sale of E15 year-round.
 
“Thank you, Senators Fischer and Sasse, for introducing a federal solution to our U.S. energy problem,” said Gov. Ricketts.  “Nebraska has proven that higher blends of ethanol can be safely used in vehicle models old as 2001, making it an accessible energy source to many Americans.  If we are to be serious about saving drivers money at the pump, cleaning up the environment, and pursuing domestic energy security, we must embrace year-round E15 as a stable, realistic part of the solution.”

This is a measure Gov. Ricketts has long advocated for.  Last spring, Gov. Ricketts joined seven governors of leading ethanol-producing states on a letter to the EPA to formally request the sale of  E15 year-round, without restriction.  Additionally, Governor Ricketts has had numerous conversations with the oil, gas, and ethanol industries and other government officials to find agreement on a permanent federal solution.  This legislation reflects that consensus.

Nebraska is the #2 ethanol producer in the U.S., with a capacity to produce 2.6 billion gallons a year.  If Congress steps up to make year-round E15 use permanent, Nebraska will be ready to help fill that need.



ACE Endorses Congressional Action to Enable E15 Sales Year-Round

The American Coalition for Ethanol (ACE) thanks Senators Amy Klobuchar (D-Minn.) and Deb Fischer (R-Neb.) for their leadership and support in introducing the Consumer and Fuel Retailer Choice Act of 2022. This bipartisan legislation clarifies E15 should be allowed for sale year-round by extending the 1-psi Reid vapor pressure (RVP) waiver to fuel blends containing gasoline and over 10 percent ethanol. ACE CEO Brian Jennings endorses this legislative action to address the issue in the following statement:  

“Ensuring uninterrupted availability of E15 year-round in all parts of the country has been an urgent priority for our industry and we are enormously grateful for the tremendous leadership of Senator Klobuchar, Senator Fischer and others by introducing this legislation to clarify the statute ahead of the 2023 summer driving season.

“Achieving a national, permanent solution for E15 year-round is best done through Congress. While the Biden Administration’s emergency waiver this summer showed the benefits of E15 through lower pump prices and greenhouse gas and tailpipe emissions, without this legislation, it is possible to lose E15 sales next summer.

“ACE looks forward to continuing to help foster bipartisan support for this legislation to ensure E15, a clean and safe fuel with lower RVP emissions than E10 and straight gasoline, can still be sold next summer.”

Cosponsors of the bill include  Senators Tammy Duckworth (D-Ill.), Chuck Grassley (R-Iowa), Tina Smith (D-Minn.), John Thune (R-S.D.), Sherrod Brown (D-Ohio), Joni Ernst (R-Iowa), Roger Marshall (R-Kan.), Dick Durbin (D-Ill.), Jerry Moran (R-Kan.), Tammy Baldwin (D-Wis.), Kevin Cramer (R-N.D.), Ben Sasse (R-Neb.), and Mike Rounds (R-S.D.).



Growth of Specialty Crops Highlights Need for Expanded Risk Management Tools

Specialty crops including fruits, vegetables and nuts make up almost one-third of total crop sales in the United States, but a large number of specialty crop acres remain uninsured. American Farm Bureau Federation economists examined specialty crop coverage in the latest Market Intel, and found that more than 80% of the acreage of hazelnuts, kiwifruit, strawberries and lettuce remain uncovered through the Federal Crop Insurance Program or Noninsured Crop Disaster Program, while more than 50% of walnut, pecan, peach, squash, sweet corn, watermelon, pumpkin, cucumber and pepper acreage lacks coverage.

The Market Intel explains that this lack of coverage “shifts pressure to ad hoc disaster assistance programs which require frequent congressional authorization and lack uniformity and timeliness in producers’ abilities to benefit. They often overlook many causes of losses or qualifying provisions necessary to benefit these vulnerable growers.”

Since 2000, risk management participation has increased in most specialty crop categories. For instance, among fruits, nuts and trees, insured 2022 liabilities reached $15 billion, a $12 billion increase since 2000. Other specialty crop categories, such as nursery crops, have seen a decline in participation.

AFBF has made expanding insured commodities to include specialty crops one of its priorities for the 2023 farm bill.

AFBF President Zippy Duvall said, “America’s farmers are blessed with the ability to grow diverse and abundant foods across the country. With that diversity comes a unique set of risks not widely experienced in conventional row crop production. The 2023 farm bill should recognize those differences and offer programs that provide the same protections regardless of what a farmer chooses to grow.”