Tuesday February 07 Ag News

Farm Sector Profits Forecast to Fall in 2023
USDA Economic Research Service

Net farm income, a broad measure of profits, is forecast at $136.9 billion in calendar year 2023, a decrease of $25.9 billion (15.9 percent) relative to 2022 in nominal (not adjusted for inflation) dollars. This follows a forecast increase of $21.9 billion (15.5 percent), from $140.9 billion in 2021 to $162.7 billion in 2022. After adjusting for inflation, net farm income is forecast to decrease $30.5 billion (18.2 percent) in 2023 relative to 2022. Despite this expected decline, net farm income in 2023 would be 26.6 percent above its 20-year average (2002–2021) of $108.1 billion in inflation-adjusted dollars.

Net cash farm income is forecast at $150.6 billion in 2023, a decrease of $39.4 billion (20.7 percent) relative to 2022. This follows a forecast increase of $40.4 billion (27.0 percent) from 2021 to 2022. When adjusted for inflation, 2023 net cash farm income is forecast to decrease by $44.7 billion (22.9 percent) from a forecast record high of $195.3 billion in 2022. Despite the decrease, net cash farm income in 2023 would be 15.4 percent above its 2002–2021 average of $130.5 billion. Net cash farm income encompasses cash receipts from farming as well as cash farm-related income (including Government payments) minus cash expenses. It does not include noncash items—including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings—reflected in the net farm income measure.

Cash receipts from the sale of agricultural commodities are forecast to decrease by $23.6 billion (4.3 percent, in nominal terms) from a forecast record high of $543.4 billion in 2022 to $519.9 billion in 2023. Total crop receipts are expected to decrease by $8.9 billion (3.1 percent) from the forecast 2022 level, led by lower receipts for soybeans and corn. Total animal/animal product receipts are expected to decrease by $14.7 billion (5.7 percent), following declines in receipts for milk, eggs, broilers, and hogs.

Also contributing to forecast lower income in 2023 are lower direct Government payments and higher production expenses. Direct Government payments are forecast to fall by $5.4 billion (34.4 percent) from 2022 to $10.2 billion in 2023. This decrease is expected largely because of lower supplemental and ad hoc disaster assistance in 2023 relative to 2022. Meanwhile, total production expenses, including operator dwelling expenses, are forecast to increase by $18.2 billion (4.1 percent) to $459.5 billion in 2023. Interest expenses and livestock/poultry purchases are expected to see the largest dollar increases in 2023 relative to 2022.

Average net cash farm income for farm businesses is forecast to decrease 17.7 percent from 2022 to $92,400 per farm in 2023 (in nominal terms). All nine ERS Farm Resource Regions are expected to see average net cash farm income fall in 2023 relative to 2022, in nominal dollars, with farm businesses located in the Fruitful Rim and Northern Crescent expected to see the largest decline. When grouped by commodity specialization, all commodity specializations of farm businesses are forecast to see lower average net cash income in 2023. Those specializing in dairy and hogs are expected to see the largest decline relative to 2022.

Farm sector equity is expected to increase by 5.0 percent in 2023 to $3.5 trillion in nominal terms. Farm sector assets are forecast to increase 5.2 percent in 2023 to $4.0 trillion following expected increases in the value of farm real estate assets. Farm sector debt is forecast to increase 6.2 percent in 2023 to $535.1 billion. Debt-to-asset levels for the sector are forecast to increase from 13.09 percent in 2022 to 13.22 percent in 2023. After increasing in 2021 and 2022, working capital is forecast to fall 11.2 percent in 2023 relative to 2022.

Median Income of Farm Operator Households Forecast to Increase Nominally, Decrease After Inflation, in 2022 and 2023
Median total farm household income is forecast to increase in 2022 to $94,853 and again to $96,715 in 2023. That is a nominal increase of 2.8 percent (a 3.6-percent decline after inflation) between 2021 and 2022, and a 2.0-percent nominal increase (a 0.8-percent decline after inflation) in 2023 from the previous year.

Farm households typically receive income from both farm and off-farm sources. Median farm income earned by farm households is forecast to decrease in 2022 to -$683 from $210 in 2021, and then forecast to decline further to -$1,125 in 2023. Many farm households primarily rely on off-farm income: median off-farm income in 2022 is forecast at $88,201, an increase of 6.5 percent (a decrease of 0.2 percent after inflation) from $82,809 in 2021, and to continue increasing by 3.3 percent (0.4 percent after inflation) to $91,080 in 2023. Since farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.



NCF is Accepting Scholarship Applications

Each year, the Nebraska Cattlemen Research and Education Foundation (NCF) offers scholarships to help students continue pursing their academic careers. This would not be possible without many generous donors who believe in positioning the future of the beef cattle community for success.

NCF is currently accepting scholarship applications for the 2023-2024 academic year from qualified youth. Applications are available on the Nebraska Cattlemen website or can be obtained by calling the NCF office at (402) 475-2333.

Below you will find descriptions and deadlines for NCF scholarships. Please refer to the Nebraska Beef State Scholarship application and the general scholarship application for complete selection requirements.

NEBRASKA CATTLEMEN BEEF STATE SCHOLARSHIP
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.

$1,000 MINIMUM SCHOLARSHIPS
NCF offers numerous other $1,000 minimum scholarships, awarded on the basis of academic achievement, beef industry involvement and goals/quality of the 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.

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



NWGGA LAUNCHES 2023 NEBRASKA WINE PASSPORTS - NOW OFFERING A DIGITAL FORMAT!

Be the first to explore Nebraska's wine scene with the 2023 Nebraska Wine Passport brought to you by the Nebraska Winery and Grape Growers Association (NWGGA). The 2023 passport is the perfect way to experience the finest in Nebraska wines. With over 30 participating Nebraska wineries and tasting rooms, the passport offers a unique way to discover local wines and learn more about the Nebraska wine industry.

The NWGGA is excited to offer the 2023 Nebraska Wine Passport in a printed and digital format. The printed option consists of a map of Nebraska showing the location of Nebraska's wineries and tasting rooms and information about each location. The digital pass can be found directly at GO.NebraskaWines.com and offers the same information in a convenient digital web-based app that can be pulled up directly on a smartphone browser, with no downloading required.

The 2023 Nebraska Wine Passport digital program kicked off in early February, and official passports can be picked up at participating wineries, tasting rooms, and local visitor bureaus starting March 1. Passports can also be downloaded or requested in advance at www.NebraskaWinePassport.com. This year of the program features 24 Nebraska wineries and 10 tasting rooms. The NWGGA had a record number of passports requested in 2022 and hopes more people will visit Nebraska's award-winning wineries in 2023. No purchase is necessary to obtain stamps for the passports, but visitors are encouraged to enjoy a glass, tasting, or take home a bottle or two!

Exclusive to the digital pass are special offers and discounts from some of the participating wineries and tasting rooms, as well as point-based prize redemptions that can be used throughout the year. Prizes include the ever-popular wine bucks, which can be used to purchase wine by the glass or bottle at each location. Prizes and redemptions also include prize drawings and a grand prize drawing for a wine basket that includes: a wine tumbler, $100 in Nebraska wine bucks, and two tickets to the 2024 TOAST Nebraska Wine Festival.

The Nebraska Wine Passport program promotes Nebraska wines and encourages people to visit communities and interact with other businesses across the state.

We encourage Nebraskans to visit all the wineries and tasting rooms on the 2023 Nebraska Wine Passport. The NWGGA is proud to play a significant role in Nebraska’s growing wine and tourism industries.



Tentinger is Congressman Feenstra’s Guest at Tonight’s State of the Union Address

Chad Tentinger, lead developer of Cattlemen’s Heritage Beef Company’s proposed $450-million beef-processing facility in Mills County, Iowa, is U.S. Rep. Randy Feenstra’s guest at President Biden’s State of the Union address tonight.

Tentinger praised Feenstra as “a great advocate for farmers and small-town Iowa.”

Feenstra, who represents Iowa’s Fourth Congressional District, which includes Mills County, joined U.S. Sen. Chuck Grassley in the previous Congress to introduce the Cattle Price Discovery and Transparency Act ­to ensure that independent cattle producers receive a fair price for their high-quality products.

“From his entrepreneurial spirit to his commitment to his community, Chad is the personification of the American Dream and the perfect representative of our rural Iowa values,” Feenstra said. “I am proud to work with folks like Chad to bring transparency to the cattle market, fight back against the EPA’s destructive WOTUS regulations, and lower input costs for our job creators, innovators, and independent cattle producers. I look forward to welcoming Chad to our nation’s capital and reminding President Biden that rural America deserves a seat at the table.”

Cattlemen’s Heritage Beef Company plans to break ground this year on a $450-million beef processing plant on 132 acres just south of Council Bluffs. The facility, which is expected to open in late 2024, will process 2,000 head of cattle daily and create good-paying jobs for the region.



Iowa Renewable Fuels Producers are “Energized, but a Little Angry”

During his state of the industry address at the 2023 Iowa Renewable Fuels Summit today, Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw said that the Iowa biofuels industry is “energized, but a little bit angry.” The mixed mood derives from the expanding opportunities to grow renewable fuels use coupled with ongoing efforts by some elected officials and interest groups to block those very possibilities.
 
“The Iowa renewable fuels industry is energized, but a little bit angry,” stated Shaw. “Producers are energized because the world is demanding clean, affordable, renewable energy, and we can deliver. Why a bit angry? To put it simply, we are sick and tired of the unnecessary roadblocks from elected officials and interest groups that want to protect their cherry-picked forms of energy – whether that be supporters of fossil fuels or electric vehicles.”
 
One source of frustration cited by Shaw was when “the White House broke its promise” to have the Midwest E15 solution finalized in time for the 2023 summer driving season. “Someone in the White House put the brakes on. This will cause irreparable harm to thousands of fuel retailers and millions of consumers. To put it bluntly, we were told to be patient and keep quiet, and everything would be fine for this summer…So, yes, we’re a little bit angry.”
 
Another challenge are groups who want to completely block Iowa ethanol producers from utilizing carbon capture and sequestration (CCS). Shaw remarked, “I’m not here today to ask you to support carbon policies or clean fuel tax credits. I am here to ask you to honestly consider the real-world impact they have on Iowa’s ethanol plants. If we want to maintain or grow Iowa ethanol production, it will require CCS.”
 
Shaw also highlighted the results of new research quantifying the impact of renewable fuels production on the Iowa economy. The new study, authored by John Urbanchuk of ABF Economics, found the production of ethanol and biodiesel accounts for nearly $7.2 billion in state GDP, supports more than 57,000 jobs throughout the economy, and boosts Iowa household income by over $3.5 billion.
 
“Renewable fuels have changed the economic trajectory of Iowa,” stated Shaw. “I believe that is an impact worth fighting to maintain and expand. We will roll up our sleeves and get to work energized by the nearly limitless possibilities for renewable fuels and renewable products as we look to the horizon.”



Winners Announced in Contest Showcasing Swine Research
    
A research project involving swine dysentery was the top winner of a research poster competition, organized by the Iowa Pork Producers Association (IPPA) research committee and the Iowa Pork Industry Center (IPIC) in Ames. Swine dysentery can cause up to $236 million in economic damage to the U.S. hog herd annually.

In its second year, the contest was once again sponsored by Cargill during the 2023 Iowa Pork Congress in Des Moines the last week of January. Participants were students at Iowa State University (ISU) in Ames who are studying a variety of areas that are relevant to pork production. Other winning poster topics included the impacts of heat stress on production efficiencies and heart health, as well as the effects of fertilizers and cover crops on yield and drainage water quality.

The first-place award for $1,000 went to Maria Hakimi, a graduate student in ISU’s Department of Veterinary Diagnostic and Production Animal Medicine. In collaboration with two ISU professors, she evaluated which commonly used drugs work best for preventing and treating swine dysentery, a severe infectious disease that causes diarrhea and weight loss.

“It was really good interacting with people from different backgrounds—veterinarians and producers,” said Hakimi, of Ames. “Getting feedback was really helpful to know what we need to do next.”

Tori Rudolph won the $500 second-place prize for a project that looked into the impact of prolonged heat stress on production outcomes for male and female growing pigs.

“With summers getting hotter, heat stress is a growing problem in the United States and across the world,” said Rudolph, a native of Burlington, Wis. She added that heat stress costs the U.S. swine industry nearly $1 billion annually.

Missey Roths, a graduate student in ISU’s animal physiology program, received third place and $500. She and four others are named on research that suggests heart damage from heat stress could contribute to decreased animal performance. Roths is from Clarion.

Another round of judging was determined by Iowa Pork Congress attendees. The Producer’s Choice winner was Gabby Myers, from Underwood, a graduate student in ISU’s Department of Agricultural and Biosystems Engineering.

She received $500 from IPPA for her project that assessed the impacts of agricultural management practices on corn yield and drainage water quality. The study suggests sustainability practices that improve the environmental footprint of hog production.

A total of 12 research projects were in the contest.



Monthly Dairy Webinar On Feb 15 Focus on Forage Storage Options

The Iowa State University Extension and Outreach Dairy Team monthly webinar series continues on Wednesday, February 15 from 12 noon to 1 p.m. This program will focus on evaluating forage storage options for your farm.

Brian Dougherty is a field agricultural engineer for ISU Extension and Outreach. His dairy-related extension work focuses on facilities, ventilation, manure management, composting, and the effects of cropping systems on soil health and water quality.

He will discuss factors to consider when evaluating forage storage alternatives. He will also cover general facility siting and design and discuss tools and tips for selecting the best fit for your operation.

Producers, dairy consultants, and industry reps are encouraged to attend the free webinar live from noon to 1:00 p.m. on January 18 by pre-registering at: https://go.iastate.edu/KDMGKW.  

For more information contact the ISU Extension and Outreach Dairy Field Specialist in your area: in Northwest Iowa, Fred M. Hall, 712-737-4230 or fredhall@iastate.edu; in Northeast Iowa, Jennifer Bentley, 563-382-2949 or jbentley@iastate.edu; in East Central Iowa, Larry Tranel, 563-583-6496 or tranel@iastate.edu.



Global Demand for Fuel Ethanol Through 2030

Consumption of ethanol as a transportation fuel (largely sourced from corn) has seen significant growth in the last couple of decades in the United States.

A new report issued today by USDA’s Economic Research Service, Global Demand for Fuel Ethanol Through 2030, summarizes the current U.S. and international fuel ethanol markets and provides projections of future fuel ethanol demand in these markets.

Here are a few key findings from the report:
    Ethanol manufacturers use about 40 percent of the U.S. corn crop for ethanol and related co-products, with the majority of the ethanol being consumed in the domestic transportation fuel market.
    Recently, demand for ethanol saw reductions in response to measures taken to combat the Coronavirus (COVID-19) pandemic, such as pandemic-related restrictions, remote work and school, and other social distancing efforts. Though U.S. ethanol consumption has largely recovered from these COVID-19 impacts, increased adoption of hybrid or electric vehicles and continued fuel efficiency gains in gasoline vehicles may decrease domestic gasoline consumption, which in turn could decrease fuel ethanol demand.
    For 2021 to 2030, the U.S. Department of Energy’s Energy Information Administration (EIA) estimates and projections indicate U.S. consumption of ethanol in motor gasoline and E85 is expected to increase between 196 million gallons (1.4 percent) and 1.4 billion gallons (10.4 percent), depending on U.S. economic growth over the decade.
    Total global demand for gasoline is expected to stagnate over the next decade, leaving changes in blend rates—domestically or abroad—as the main determinant for future changes in fuel ethanol demand.

For more detailed information, please refer to the full report https://www.ers.usda.gov/webdocs/outlooks/105762/bio-05.pdf?v=1322.9.



Pace of U.S. Ethanol Sales Slows at Year End while DDGS Exports Rally
Ann Lewis, Senior Analyst, Renewable Fuels Association  

December U.S. ethanol exports slipped 9% to a 17-month low of 74.2 million gallons (mg), or 41% less than the volume shipped a year ago. Essentially all U.S. ethanol exports landed in just eight countries, with Canada securing an unprecedented 66% of total exports. December marks Canada’s 21st month as our largest customer with 48.8 mg (up 2% from Nov.) moving across the border, the bulk of which was denatured ethanol. U.S. ethanol exports quadrupled to the Philippines (to 8.8 mg, an 11-month high) and doubled to Jamaica (to 4.1 mg, nearly a 3-year high). Mexico (4.0 mg) imported 23% fewer gallons while South Korea (3.9 mg) cut imports in half. Vietnam, which imported U.S. ethanol for essentially the first time since July 2020, purchased a record 2.4 mg. Some significant markets for U.S. ethanol were noticeably absent in December, including the European Union, Brazil, and India. Total U.S. exports for the year were 1.35 billion gallons, the fourth highest on record.

The U.S. imported 2.2 mg of undenatured ethanol from Brazil. Total U.S. imports for the year were 79.3 mg, or 36% more than 2021.

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, leapt 22% to a three-month high of 887,433 metric tons (mt). While the mix of larger customers varied from recent norms, Mexico remained our top customer for the sixth consecutive month despite an 18% decline to 169,032 mt (equivalent to 19% of December exports). Shipments to South Korea bounced back 35% to 124,216 mt and Colombia imported a record 64,373 mt. Other larger markets included Vietnam (61,964 mt, -9% to a 10-month low), United Kingdom (58,149 mt, up from zero to the largest monthly volume in over 4 years), Canada (57,287 mt, -5%), Indonesia (56,248 mt, +7%), Turkey (48,891 mt, +246%), Japan (46,850 mt, +23%), and the European Union (40,740 mt, +48%)—primarily to Ireland. Notably, imports to China hit an 11-month high (27,985 mt) while Taiwan imported the largest volume in 11 years (27,595 mt). Total U.S. DDGS exports for the year of 11.0 million mt were 4% more than 2021.



NMPF Statement on Record Dairy Exports
President and CEO Jim Mulhern

“For the third consecutive year, U.S. dairy farmers have proven how their dedication to innovation and sustainability leadership increasingly have made them the world’s provider of choice for nutritious dairy products. In both value and in volume, U.S. sales are at all-time highs, and in 2022, a record percentage of U.S. milk production was exported overseas. This happened despite the headwinds our exporters battled last year, which included supply chain challenges, a lack of new trade agreements to establish more level playing fields abroad, and other barriers to trade that threatened to upend progress.

“Let this be a signal to the world: U.S. dairy farmers are, and will be, a growing force for global nutrition, sustainability and health, as shown by the increasing preference of consumers worldwide for the products they create. We’re excited to see today’s year-end export totals reflect a vision we’ve been pursuing for decades, and we look forward to seeing further progress in the years to come.”



USDA Develops Simplified Direct Loan Application to Improve Customer Service

The U.S. Department of Agriculture (USDA) has developed a simplified direct loan application to provide improved customer experience for producers applying for loans from the Farm Service Agency (FSA). The simplified direct loan application enables producers to complete a more streamlined application, reduced from 29 to 13 pages. Producers will also have the option to complete an electronic fillable form or prepare a traditional, paper application for submission to their local FSA farm loan office. The paper and electronic versions of the form will be available starting March 1, 2023.

“USDA is committed to improving our farm loan processes to better serve all of our borrowers,” said FSA Administrator Zach Ducheneaux. “We’re consistently looking for ways to make the application process easier to navigate, so more producers are able to complete it. Our new direct loan application is a critical step forward in our efforts to improve customer service and build equity into not just our programs but also our services.”

Approximately 26,000 producers submit a direct loan application to the FSA annually, but there is a high rate of incomplete or withdrawn applications, due in part to a challenging and lengthy paper-based application process. Coupled with the Loan Assistance Tool released in October 2022, the simplified application will provide all loan applicants access to information regarding the application process and assist them with gathering the correct documents before they begin the process. This new application will help farmers and ranchers submit complete loan applications and reduce the number of incomplete, rejected, or withdrawn applications.  

In October 2022, USDA launched the Loan Assistance Tool, an online step-by-step guide that provides materials to help an applicant prepare their farm loan application in one tool. Farmers can access the Loan Assistance Tool by visiting farmers.gov/farm-loan-assistance-tool and clicking the ‘Get Started’ button. The tool is built to run on any modern browser like Chrome, Edge, Firefox, or the Safari browser. A version compatible with mobile devices is expected to be available by the summer. It does not work in Internet Explorer.  

The simplified direct loan application and Loan Assistance Tool are the first of multiple farm loan process improvements that will be available to USDA customers on farmers.gov in the future. Other improvements that are anticipated to launch in 2023 include: 
    An interactive online direct loan application that gives customers a paperless and electronic signature option, along with the ability to attach supporting documents such as tax returns.  
    An online direct loan repayment feature that relieves borrowers from the necessity of calling, mailing, or visiting a local Service Center to pay a loan installment. 

USDA provides access to credit to approximately 115,000 producers who cannot obtain sufficient commercial credit through direct and guaranteed farm loans. With the funds and direction Congress provided in Section 22006 of the Inflation Reduction Act, USDA took action in October 2022 to provide relief to qualifying distressed borrowers while working on making transformational changes to loan servicing so that borrowers are provided the flexibility and opportunities needed to address the inherent risks and unpredictability associated with agricultural operations. 

Soon, all direct loan borrowers will receive a letter from USDA describing the circumstances under which additional payments will be made to distressed borrowers and how they can work with their FSA local office to discuss these options. Producers can explore all available options on all FSA loan options at fsa.usda.gov or by contacting their local USDA Service Center.



Over-the-counter to Prescription Change for Antimicrobials Signals Shift for Livestock Producers

Livestock producers will start noticing a change in how they access specific antimicrobial products, as some products will be switching from over-the-counter (OTC) to prescription (Rx) only status as a result of U.S. Food and Drug Administration (FDA) Guidance for Industry (GFI) #263. The guidance calls for animal drug manufacturers to change medically important antimicrobial drugs from OTC to Rx status by June 11, 2023. Now is the time to plan for a smooth transition, and Zoetis is actively working with veterinarians and producers in this time of change to help ensure continued access to the company’s animal health products.

“We have long been committed to working with veterinarians and livestock producers to help them establish veterinarian-client-patient relationships [VCPR] that put the animal’s best interests at the center of the conversation,” said Mike Lormore, DVM, Head of U.S. Cattle & Pork Technical Services at Zoetis. “Now more than ever, it is important to ensure that a VCPR is in place, and revisiting treatment protocols and where products are available will be keys to success.”

Antimicrobial products from Zoetis that will be affected include:
    Albadry Plus® (penicillin G procaine and novobiocin sodium intramammary infusion) Suspension for cattle
    Albon® (sulfadimethoxine) Boluses for cattle
    Lincomix® (brand of lincomycin injection) for swine
    Liquamycin® LA-200® (oxytetracycline injection) for cattle and swine
    Terramycin® (oxytetracycline hydrochloride and polymyxin B sulfate ophthalmic ointment) for sheep, cattle, horses
    Terramycin® (oxytetracycline HCl) Scours Tablets for cattle

The FDA has requested that label changes for these products be in place by June 11, 2023.

“This change matches with our industry goal of helping veterinarians and producers be good stewards of antibiotic products through judicious use,” Dr. Lormore said. “Once the guidance is in effect, it is important that these products are used under the supervision of a licensed veterinarian going forward.”

Antibiotic stewardship and judicious use are keys to successful disease treatment and helping to provide the best possible animal health outcomes. Zoetis supports the livestock industry through a One Health approach for the responsible use of antimicrobials. This approach includes advocating for the health of animals and those who care for them; innovating and investing in research that provides enhanced solutions; and collaborating with leaders in veterinary, human and public health as well as the food industry to preserve animal health and welfare.

“We strongly encourage producers to talk to their veterinarian about these changes to avoid surprises in where and how they can access animal health products,” Dr. Lormore said. “Don’t be caught unaware. Have a plan. Additionally, our commitment to supporting veterinarians and the livestock industry as a whole is unchanged, and we are providing resource materials and educational pieces on products that were previously available over the counter.”

This switch should prompt positive producer-veterinarian conversations that allow for revisiting animal health treatment protocols. Putting a plan in place now will help ensure access to the products needed later in the year.

Questions to keep in mind for those conversations:
    What prevention and treatments are recommended for operation-specific disease pressures?
    Will the antimicrobials I am currently using be affected by the switch?
    How can affected products be accessed after June 11,2023?
    Are there disease prevention protocols that could be implemented to help reduce disease risks before they occur and increase my operation’s success?

For more information about this transition, visit with your veterinarian and local Zoetis representative.



Despite the Toughest Conditions in Years, Farmers Planting Pioneer® Brand Sorghum Continue Winning Streak in NSP Yield Contest

The results of the National Sorghum Producers (NSP) Yield Contest have been announced, and farmers who grew Pioneer® brand sorghum hybrids represented more than 80% of all national first-, second- and third-place winners and earned four of seven first-place national honors. The winning extended to the state level, where farmers who grew Pioneer brand sorghum won 35 of 47 state first-, second- and third-place titles, accounting for 75% of all state category winners.

Many sorghum producers battled exceptionally difficult weather conditions all season, including extreme drought in key sorghum production areas. The results drove down overall sorghum yields to levels not seen since 1984, but producers who planted Pioneer brand sorghum still managed to deliver winning results.

“Sorghum farmers are accustomed to challenges, but this year really demonstrated the importance of selecting hybrids that are capable of performing in the toughest conditions,” said LeAnn Larson, Pioneer Sorghum Marketing Manager. “We saw several national NSP winners who grew Pioneer brand sorghum submit their harvest results from a 100-acre contest plot instead of the required 10, showing how consistently strong the yield results were across their fields.”

Over the past five years, more than 80% of the NSP Yield Contest national winners grew Pioneer brand sorghum hybrids, demonstrating a clear pattern of top-end yield performance across diverse geographies and various field management practices.

The NSP Yield Contest awards participating farmers with first, second and third places in each of seven divisions: dryland-no till east, dryland-no till west, dryland-tillage east, dryland-tillage west, irrigated-east, irrigated-west and food grade.



AGCO Reports Fourth Quarter Results

AGCO, a worldwide manufacturer and distributor of agricultural equipment and solutions, reported net sales of $3.9 billion for the fourth quarter of 2022, an increase of 23.6% compared to the fourth quarter of 2021. Reported net income was $4.29 per share for the fourth quarter of 2022, and adjusted net income (3) , which excludes restructuring expenses and a charge related to the divestiture of a Russian joint venture, was $4.47 per share. These results compare to reported net income of $3.75 per share and adjusted net income (3) , which excludes restructuring expenses and the reversal of a valuation allowance previously established against the Company’s deferred tax assets in Brazil, of $3.08 per share, for the fourth quarter of 2021. Excluding unfavorable currency translation impacts of 9.2%, net sales in the fourth quarter of 2022 increased 32.7% compared to the fourth quarter of 2021.

“Our record results in 2022, underscored by net sales of approximately $12.7 billion and adjusted operating margin of 10.3%, are the result of continued execution of our strategy,” stated Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer. “Our performance was fueled by robust demand for our industry-leading products coupled with continued solid global industry demand. Our farmer-first focus was highlighted by our fourth quarter results that not only delivered record net sales and operating margin, but also generated substantial free cash flow. These results are further evidence that our precision ag technology and premier equipment are in high demand and are driving productivity improvements for our farmers while providing us margin-rich growth opportunities.”

Mr. Hansotia continued, “For 2023, we expect continued sales growth and margin expansion as industry demand remains strong and our farmer-first strategy continues to gain traction. We assume global market conditions will remain healthy, as favorable farm economics allow farmers to continue to invest in new more productive equipment and technology upgrades. While improving, we expect supply chain pressures will persist, presenting challenges throughout the year. We remain focused on growing our high-margin precision ag business, globalizing the full-line of our Fendt branded products and expanding our parts and service business. We will continue to accelerate investments in premium technology, smart farming solutions and enhanced digital capabilities to support our farmer-first strategy while helping to sustainably feed the world.”

Fourth Quarter Highlights
    Reported fourth quarter regional sales results (1) : Europe/Middle East (“EME”) +21.7%, North America +22.1%, South America +66.4%, Asia/Pacific/Africa (“APA”) (23.1)%
    Constant currency fourth quarter regional sales results (1)(2)(3) : EME +37.9%, North America +23.2%, South America +57.9%, APA (14.5)%
    Fourth quarter regional operating margin performance: EME 14.6%, North America 7.4%, South America 20.0%, APA 9.0%
    Full-year reported operating margins and adjusted operating margins (3) improved to 10.0% and 10.3% respectively, in 2022 compared to 9.0% and 9.1% in 2021
    Generated $838.2 million in cash flow from operations and $449.9 million in free cash flow (3) for the full-year 2022

Net sales for the full year of 2022 were approximately $12.7 billion, which is an increase of 13.6% compared to 2021. Excluding unfavorable currency translation impacts of 8.5%, net sales for the full year of 2022 increased 22.1% compared to 2021. For the full year of 2022, reported net income was $11.87 per share, and adjusted net income (3) , excluding impairment charges, restructuring expenses and other related items, was $12.42 per share. These results compare to reported net income of $11.85 per share and adjusted net income (3) , which excludes restructuring expenses and the reversal of a valuation allowance previously established against the Company’s deferred tax assets in the United States and Brazil, of $10.38 per share in 2021.



CLAAS Announces the Next Generation XERION Tractor

CLAAS of America announces updates to the 2023 XERION tractor line. The latest model delivers even more, offering best-in-class performance right where four-wheel drive tractor growers need it with powertrain upgrades, improved hydraulic flow and added versatility.

Since the North American launch, the XERION line of high-horsepower tractors has been known for its refined ride, high transport speeds, excellent fuel economy and a whisper-quiet cab. The high-horsepower (435-530 hp) tractor offers confidence-inspiring technology with a higher level of capability, ultimately helping customers work more productively and efficiently.

“We designed the XERION to be our customers’ favored choice for true tractor capability,” said Frans Reijmers, CLAAS tractor product manager. “The enhancements to 2023 models build on its core strengths and provide the power, a better balance in the design and operator confidence that makes tackling those all-day, tough jobs more convenient than ever.”

New Transmission, Proven Features
Tackle steep terrain and experience a smoother ride with the all-new Eccom 5.5 continuously variable transmission (CVT). Like previous transmission technology (Eccom 4.5 and ZF Eccom 5.0), the Eccom 5.5 is also a 4-range CVT that better transfers the engine’s torque and power for superior efficiency and higher productivity. A maximum forward speed of 31 mph can be achieved at a low, fuel-saving rpm.

Industry’s Highest Hydraulic Power
The switch to the new Eccom 5.5 enables higher hydraulic flow than not only just its predecessor, but also competitive brands. With up to six double-acting rear spool valves, a brand new pump transfer gearbox and optional tandem pumps allow an oil flow of up to 111 gallons per minute – more than sufficient hydraulic volume for implements with a particularly high oil flow requirement, such as wide air seeders. Up to two spool valves can be supplied with a high flow rate of 37 gallons per minute with standard load-sensing working hydraulics.

In addition, two spool valves (standard equipment) and three spool valves when equipped with the optional tandem pump can be prioritized in CEBIS. A separate and optimized 120 hp hydraulic system with 66 gallons per minute at 3,770 psi is available for attachments such as manure tanks and front-mounted implements requiring high-horsepower hydraulics. A hydraulic dual-circuit trailer brake can also be supplied for North American customers.

Intelligent Ballasting And Conveniences
Also available in model year 2023 units is a new base weight plate for the multi-purpose carrier space behind the cab. Using the intelligent ballast concept with additional 882 Ib. weight plates and ballastable front weight, up to 15,432 Ibs. of additional ballast can be loaded. Depending on the application, the XERION can be optimally balanced for a 50:50 weight distribution under load for maximum multi-pass effect.

The lineup enhancements in the new model year includes XERION 5000 and 4500 models in TRAC or TRAC VC configurations. In celebration of its 25th year in production, all model year 2023 XERION tractors will come with a limited-edition anniversary sticker at time of delivery.