Thursday January 05 Ag News

 Biden-Harris Administration Invests in Projects to Promote Competition and Strengthen the Nation’s Meat Supply Chain

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced the Biden-Harris Administration is investing $9.6 million across the country and taking several other steps to help farmers, ranchers, processors and rural businesses diversify the nation’s meat supply.

“USDA is putting the needs of farmers, ranchers and consumers at the forefront of the Biden-Harris Administration’s work to strengthen the resiliency of America’s food supply chain while promoting competition,” Vilsack said. “USDA has undertaken a Department-wide approach to coordinate ways to deliver more opportunities and fairer prices for producers, to give people access to healthier foods, eliminate bottlenecks in the food supply chain and ultimately lower prices for consumers.”

Secretary Vilsack announced 25 new investments to increase independent meat processing capacity.

The Department is awarding 23 Value Added Producer Grant program grants totaling $3.9 million to help producer-owned companies process and market new products. USDA is also providing guarantees for a total of $5.7 million in loans to two companies through the Food Supply Chain Guaranteed Loan Program using American Rescue Plan funding. This program supports new investments in infrastructure for food aggregation, processing, manufacturing, storage, transportation, wholesaling and distribution.

Among the projects approved:
Oak Barn Beef LLC - $249,965 grant - This Rural Development investment will be used to provide working capital for the processing of direct-to-consumer beef cuts, specifically the costs for processing, marketing materials, and distribution of the value-added product. The project is expected to increase revenue for the producer by $87,500, increase their customer base by 750 customers, and create or save two jobs.

Classen Land & Cattle LLC - $49,688 grant - This Rural Development investment will be used to provide working capital for the processing of direct-to-consumer beef cattle. Specifically, funds will be used for direct processing, marketing materials, website, and distribution of the value-added product. The project is expected to increase revenue for the producer by $178,027, increase their customer base by 160 customers, and create or save two jobs.

Jordan's Meat Market LLC - $800,000 loan - This Rural Development investment will be used to construct a meat locker in Marcus, Iowa. The funding will cover construction of the facility and working capital. This project is expected to create seven jobs.

Waubonsie Ridge Beef LLC - $210,000 grant - This Rural Development investment will be used to help Waubonsie Ridge Beef LLC, a cattle farm operation in Tabor, expand production. This project will support the processing and marketing of retail beef cuts. The expansion will create more value-added meat products for sale to the public and will promote economic development in Fremont County.

Through these two programs, USDA is investing in 25 projects in California, Illinois, Iowa, Kansas, Kentucky, Maine, Montana, Nebraska, New York, Ohio, Oklahoma, Texas, Virginia, Washington and Wisconsin.



Nebraska Cattlemen Foundation Now Accepting Scholarship Applications

This week, the Nebraska Cattlemen Research and Education Foundation (NCF) announced they are now accepting scholarships applications for the 2023-2024 academic year from qualified youth in Nebraska with an interest in the beef industry.

NCF President Ryan Loseke stated, “Each year, we are privileged to provide select students with the necessary tools and resources to continue pursuing their interest in the beef industry. NCF scholarships would not be possible without our generous donors who believe in setting up the future of the beef cattle community for success. We look forward to seeing this year’s talented pool of applicants.”

The prestigious Nebraska Cattlemen Beef State Scholarship awards a $10,000 scholarship to an outstanding college junior, senior or graduate-level student. Eligible students must be residents of Nebraska and be enrolled in a Nebraska college or university pursuing a beef industry-related degree. The scholarship will be awarded based on student need, Nebraska beef industry involvement including past achievements and future plans, and academics. Completed applications are due in the Nebraska Cattlemen Foundation office by close of business on Wednesday, February 15, 2023. Incomplete applications and applications received after the due date will be disqualified. Finalists will be invited to a personal interview with the selection committee.

NCF offers numerous other $1,000 minimum scholarships, awarded on the basis of academic achievement, beef industry involvement and goals/quality of application. Completed applications are due in the Nebraska Cattlemen Foundation office by close of business on Wednesday, March 15, 2023. Incomplete applications and applications received after the due date will be disqualified. Scholarship recipients must be a high school senior or college student, have a "C" or higher grade point average, and be enrolled or intending to enroll full time in a college or university that offers a bachelor degree, an approved vocation or trade school, or a state accredited junior college.

Refer to the Nebraska Beef State Scholarship application and the general scholarship application for complete selection requirements. Applications are available on the Nebraska Cattlemen website or can be obtained by calling the NCF office at (402) 475-2333.

All scholarship winners will be announced during the Nebraska Cattlemen Annual Midyear Meeting in June 2023.



Nebraska Beef Council January Board Meeting

The Nebraska Beef Council Board of Directors will meet at the NBC office in Kearney, NE located at 1319 Central Ave. on Tuesday, January 17, 2023  beginning at 8:00 a.m. CST. The NBC Board of Directors will have election of officers and discuss Foreign Marketing. For more information, please contact Pam Esslinger at pam@nebeef.org.  



U.S. Custom Harvesters to Celebrate 40th year at Annual Convention in Omaha
 
U.S. Custom Harvesters, Inc. (USCHI) will host their Annual Convention in Omaha, Nebraska, February 2-5, 2023. This year USCHI celebrates its 40th anniversary as an organization that serves the custom harvesting industry.
 
The Annual Convention will host a 146,000 square foot tradeshow, combine clinics, forage clinics, state meetings, women’s and kids’ events, a children’s safety day, entertainment from Big Time Grain Company and speakers, including social influencer and advocate for agriculture, Farm Babe (Michelle Miller). The trade show will feature sponsors such as AGCO Corporation, Case IH, CLAAS of America, John Deere, Pipe Ag, MACDON Industries, JCB North America, INSPRO, a Marsh McLennan agency, and more to demonstrate the newest equipment and technology to more than 600 USCHI members and harvest crew owners.
 
“USCHI’s Annual Convention is the yearly capstone for our organization. It’s a chance for our organization to connect members with machinery and equipment manufacturers and gather to discuss what’s happening in the industry – from inflated costs to new legislation that will affect our workforce,” said JC Schemper, USCHI board president. “This year kicks off the 40th year of our organization representing custom harvesters. The convention will provide educational opportunities for policy solutions, technology advancements, and more within the industry.”
 
In addition to the program, the board of directors will promote and elect new leaders for the organization. JC Schemper, current president, will move to an advisor role, while David Misener rises to President. Paul Paplow is running for Vice President and Mark Anderson, Nick Dietrick, Pat Farris, and Mychal Neumiller are running for the two open board seats.



Naig Announces Leadership Team for Second Term

Iowa Secretary of Agriculture Mike Naig today announced employees who will serve in leadership positions at the Iowa Department of Agriculture and Land Stewardship. The announcement comes as Naig begins his second term as Secretary.

Secretary Naig’s swearing-in ceremony will be at 1:00 p.m. on Friday, January 13, in the rotunda of the Iowa State Capitol. The ceremony is open to the public.

“It’s an honor to continue serving the people of Iowa as Secretary of Agriculture. We have assembled a passionate and talented team that will provide excellent leadership for the Department and the diverse Iowa agricultural community,” said Secretary Naig. “Whether it’s our work in consumer protection and food safety or our focus on building markets and improving water quality, the important work of the Iowa Department of Agriculture and Land Stewardship touches the lives of every Iowan every day. I have full confidence that this capable team will provide exceptional service and trusted leadership as we carry out our mission.”

The following is a list of Department leadership:
Grant Menke, Deputy Secretary. Menke is joining the Department after serving as Vice President of Market Development for the Iowa Corns Growers Association and Iowa Corn Promotion Board. Prior to that, he served as Iowa State Director for USDA Rural Development and Policy Director for the Iowa Renewable Fuels Association.

Colin Tadlock, Chief of Staff. Tadlock joined the Department in 2021 as Legislative Liaison after previously serving as the Communications Director for the Speaker’s Office in the Iowa House of Representatives.

Susan Kozak, Division Director, Soil Conservation and Water Quality. Kozak has served as Division Director since 2019. She has been with the Department since 2008 and previously served as Mines and Minerals Bureau Chief.

Kate Bussanmas, Deputy Division Director, Soil Conservation and Water Quality. Bussanmas has served as the Deputy Division Director since 2019. She has been with the Department since 2016 and previously worked in the Field Services Bureau.

Dr. Travis Knight, Division Director, Consumer Protection and Industry Services; Food Safety and Animal Health. Dr. Knight was named Division Director in July of 2022. He has been with the Department since 2005, previously serving as Laboratory Bureau Chief.

Haylee Pontier, Deputy Division Director, Consumer Protection and Industry Services; Food Safety and Animal Health; Department Attorney. Pontier joined the Department in September of 2022 after previously working at the Iowa Department on Aging and United States Department of Agriculture Farm Service Agency.

Dr. Jeff Kaisand, State Veterinarian.
Dr. Justin Glisan, State Climatologist.
Robin Pruisner, State Entomologist.
Paul Ovrom, State Horticulturist.
Haley Hook, Legislative Liaison.
Ben Bouwkamp, Special Assistant.
Leah Mosher, Executive Assistant and Scheduler.
Don McDowell, Communications Director.
Amy Smith, Deputy Communications Director.
Alex Rausch, Digital and Visual Communications Manager.



No DMC payments again for November

The November DMC margin was $10.89/cwt, eighteen cents higher than the October margin, as costs fell faster than prices.

The U.S. average all-milk price dropped $0.30/cwt in November from a month earlier to $25.60/cwt, while the DMC November feed cost was $0.48/cwt lower than the prior month, driven mostly, in equal measure, by lower soybean meal and premium alfalfa hay prices.

Available forecasts currently project the DMC margin will fall below $9.50/cwt during the first three quarters of 2023.  Enrollment for both calendar year 2023 DMC and Supplemental DMC closes on Jan. 31.



December CWT-Assisted Dairy Export Sales Totaled 7.1 Million Pounds

CWT member cooperatives secured 25 contracts in December, adding 7.0 million pounds of American-type cheeses and 37,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 65.2 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean and Oceania, and will be shipped from December 2022 through June 2023.

CWT-assisted 2022 dairy product sales contracts year-to-date total 99 million pounds of American-type cheese, 657,000 pounds of butter, 8.8 million pounds of cream cheese and 30.7 million pounds of whole milk powder. This brings the total milk equivalent for the year to 1.223 billion pounds on a milkfat basis.



U.S. Holding Canada Accountable for USMCA Violations

After a steady – and loud – drumbeat of NMPF and USDEC insistence that Canada must honor its dairy obligations in the U.S.-Mexico Canada Agreement (USMCA), the U.S. Trade Representative (USTR) announced Dec. 20 that it is filing a new request for dispute settlement consultations with Canada.

The move will expand the scope of a second USMCA dairy dispute to include additional elements necessary to ensure that Canada fully complies with its USMCA market-access obligations. Since the United States launched its initial USMCA dispute panel in May 2021, NMPF and USDEC have fully and vocally supported USTR and USDA in their dogged attempts to secure for American dairy producers the agreement’s full negotiated benefits.

For over a year, Canada has violated USMCA’s tariff-rate quotas (TRQs) provisions by reserving most of its preferential dairy TRQs for Canadian processors. Canada’s revised approach to TRQs, released in March 2022, still violated the agreement – prompting USTR to pursue a second USMCA enforcement action.

While NMPF is grateful for USTR’s meticulous work that has led to this new announcement, Canada has a long history of restricting trade and not honoring existing agreements. NMPF and USDEC will push for retaliatory measures that make Canadian officials reconsider their actions should that continue.



Weekly Ethanol Production for 12/30/2022

According to EIA data analyzed by the Renewable Fuels Association for the week ending December 30, ethanol production dropped precipitously, down 12.4% to 844,000 b/d. This is equivalent to 35.45 million gallons daily and the smallest volume since mid-February 2021. Production was 19.5% lower than the same week last year and 16.3% below the five-year average for the week. The four-week average ethanol production decreased 5.6% to 974,000 b/d, equivalent to an annualized rate of 14.93 billion gallons (bg).

Ethanol stocks declined 0.8% to 24.4 million barrels, yet stocks were 14.4% more than a year ago and 8.1% above the five-year average. Inventories thinned across all regions except the Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, plummeted 19.4% to a 97-week low of 7.51 million b/d (115.19 bg annualized). Demand was 8.1% less than a year ago and 9.0% below the five-year average.

Refiner/blender net inputs of ethanol also waned, down 13.9% to a 51-week low of 789,000 b/d, equivalent to 12.10 bg annualized. However, net inputs were 0.9% more than a year ago and 0.8% above the five-year average.

There were zero imports of ethanol recorded for the fourth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of November 2022.)



Global Sales of U.S. Ethanol and DDGS Dampened in November
Ann Lewis, Renewable Fuels Association Senior Analyst

U.S. ethanol exports declined 3% to a three-month low of 81.4 million gallons (mg), approximately 40% less than the volume shipped a year ago. Essentially all exported U.S. ethanol landed in just ten countries in November. Our northern neighbor secured its place as our top customer for the twentieth consecutive month as shipments to Canada increased 8% to 47.9 mg—an unprecedented 59% of all exports. U.S. ethanol exports also expanded to South Korea, up 54% to 7.8 mg. Other larger markets included Mexico (5.1 mg, -21%), the European Union (4.6 mg, -33% to a 14-month low)—primarily led by the Netherlands—Peru (4.5 mg, -1%), and the United Kingdom (3.3 mg, -5%). India, Brazil, and China were principally absent from our export market in November. Despite the recent relaxed pace, year-to-date U.S. ethanol exports total 1.28 billion gallons, 15% ahead of last year at this time.

The U.S. imported 18.9 mg of undenatured ethanol from Brazil. Total year-to-date imports stand at 77.2 mg, or 32% more than last year at this time.

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, slipped 9% to 728,409 metric tons (mt)—the lowest volume since May 2020. In line with recent trends, three markets represented half of total U.S. DDGS shipments. Mexico, our top customer for the fifth consecutive month, imported 205,769 mt (up 33% to a 4-month high). Shipments to South Korea scaled back 30% (91,838 mt), while exports to Vietnam were half of October’s volume (68,223 mt, a 9-month low). Other larger markets include Canada (60,304 mt, +16%), Indonesia (52,414 mt, -8%), Japan (38,037 mt, -21%), and the European Union (27,559, -59%)—primarily led by Ireland. Total exports for the first eleven months of 2022 totaled 10.12 million mt, lagging 5% behind last year’s pace.



2023 NEC Preview: Implementing the Inflation Reduction Act
Jared Mullendore, RFA Director of Government Affairs

Signed into law in August 2022, the Inflation Reduction Act (IRA) represents the most significant federal commitment to low-carbon biofuels since the Renewable Fuel Standard was expanded by Congress in 2007. In addition to extending several current biofuel credits and incentives, the bill creates new tax credits for clean fuel production, sustainable aviation fuel (SAF), and expands the credit for carbon capture, utilization, and storage (CCUS).

These credits have the potential to significantly accelerate production, use, and innovation across the ethanol industry. However, as with any legislation of this magnitude, the devil is in the details. Determinations relating to lifecycle emissions modeling, eligible entities, transferability of credits, as well as prevailing wage and apprenticeship requirements will all impact the ethanol industry. The federal agencies charged with putting the IRA into action are hard at work writing these rules which will determine much of the success of the bill.

As tax credits are central to the biofuel provisions in the IRA, the Department of Treasury and Internal Revenue Service will guide much of the implementation process. However, consultation with other agencies like the U.S. Department of Agriculture (USDA), Department of Energy (DOE), and Environmental Protection Agency (EPA) will also be involved. RFA has already been extensively involved in both formal and informal comment and input processes including submission of written comments, participation in roundtables, and meeting with agency officials.

At the 2023 National Ethanol Conference, taking place February 28 through March 2 in Orlando, RFA is excited to bring together a panel of experts on the tax credits within the IRA and who are working daily on its implementation. First, Dana Jackson is the National Leader for the Federal Credits and Incentives practice for RSM US. Jackson consults on issues emerging from energy tax credits and including the IRA’s Clean Fuel Production Credit as well as SAF and CCUS credits. Next, Jorge Medina is the co-leader of Pillsbury Winthrop Shaw Pittman’s Renewable Energy practice. Medina regularly works on federal tax policy issues involving renewable energy including the IRA implementation process at Treasury and IRS.

With Medina’s legal knowledge of the IRA, Jackson’s accounting and consulting contributions, and policy awareness from RFA and others, the NEC session, “It’s Go Time! Implementing the Inflation Reduction Act” aims to provide a comprehensive update on the bill’s implementation, what we know, what is still being decided, and how the industry is likely to move forward.



 New Mexico auctioneer wins World Livestock Auctioneer Championship qualifier

Sixto Paiz, of Portales, N.M., was named champion at the 2023 World Livestock Auctioneer Championship (WLAC) qualifying event at Windsor Livestock Auction Co., Inc. in Windsor, Mo. A total of 45 contestants competed for a top 10 placing, granting them a spot in the 2023 WLAC semifinals at Arcadia Stockyard in Arcadia, Fla.  

"To be around guys like I was around today – that's what I live for,” Paiz said. “That’s why we all go to these competitions. It's for the comradery with people that you know are doing the same things you do each and every day and have the same passion for it. If they didn’t, they wouldn’t be entering in the competition.”
    
Paiz has been auctioneering for around seven years, and currently sells regularly for three livestock auctions, a car sale and an equipment auction company out of Midland, Texas. This was his fourth time competing at a WLAC qualifying event and third time qualifying for the semifinals.
 
“The first one I went to I drew second in the competition order, so I got to sit there that day and listen to everybody go to find out I didn’t make it,” Paiz said. “Here I am, four years later, and to win one, it feels amazing.”
 
A live cattle sale took place, with the market’s regular buyers and sellers in the seats. Auctioneer contestants were judged on the clarity and quality of their chant, presentation, ability to catch bids/conduct the sale and how likely the judge would be to hire the auctioneer. Judges for the qualifying event were livestock market owners, managers, dealers and/or allied industry members from across the nation.
 
Individuals advancing to the semifinals with Paiz are Neil Bouray, Webber, Kan.; Leon Caselman, Long Lane, Mo.; Dean Edge, Rimbey, Alberta; Michael Imbrogno, Turlock, Calif.; Brennin Jack, Virden, Manitoba; Jacob Massey, Petersburg, Tenn.; Runner Up Champion Daniel Mitchell, Cumberland, Ohio; Reserve Champion Andrew Sylvester, Wamego, Kan.; and Tim Yoder, Montezuma, Ga.

Other contestants who competed were Cinch Anderson, John Day, Ore.; Jared Anstine, Holden, Mo.; Jeremy Anstine, Holden, Mo.; Chris Arnaman, Cameron, Mo.; Spencer Cline, Kingston, Ark.; Gary Crawley, Kiowa, Okla.; Cody Davis, Garnett, Kan. (High Score Rookie); Ryan Dean, Roland, Okla.; Eric Drees, Caldwell, Idaho; Steve Goedert, Dillon, Mont.; Cody Hanold, Brighton, Ill.; Jacob Hills, Ridgeway, Wis.; Travis Holck, Lake Crystal, Minn.; Joshua Houston, Bell Buckle, Tenn.; Tanner Jessup, Iola, Kan.; Rex Lasyone, Winnfield, La.; Cody Manspile, Lexington, Va.; Tilon Mast, Auburn, Neb.; Justin Mebane, Bakersfield, Calif.; Justin Moore, Barnesville, Ohio; Kyle Mueller, Cassville, Wis.; Mark Oberholtzer, Loyal, Wis.; Ross Parks, New Concord, Ohio; Mason Plumly, Somerton, Ohio; Austin Schaben, Dunlap, Iowa; Jim Settle, Arroyo Grande, Calif.; Barrett Simon, Rosalia, Kan.; Robert Strickler, Banco, Va.; Lonnie Stripe, Humeston, Iowa; J.R. Sullivan, Quitman, Ark.; Clayton Taylor, Washburn, Mo.; Brooks Thompson, Prague, Okla.; Marshal Tingle, Nicolasville, Ky.; Benjamin Weber, Lone Jack, Mo.; and Zack Zumstein, Marsing, Idaho.

The World Livestock Auctioneer Championship will be held in conjunction with the LMA Annual Convention June 7-10, 2023, in Arcadia and Punta Gorda, Fla.