Thursday March 16 Ag News..... and happy St. Urho's Day!

Celebrating National Ag Day

Without the work of the farmers in Nebraska and across the country, we wouldn’t have the food, fuel and fiber relied on every day. That’s why the Nebraska Corn Board is proud to recognize the hard work and resilience of those who work in agriculture this National Ag Day.

Agriculture plays a vital role in our state. We’re proud to have national rankings in all areas of production including first in white corn production, second in ethanol production and third in corn production. Our farmers are stewards of the land, and all the production is with careful consideration of the soil and land around them.

The theme for National Ag Day 2023 is, “Growing a Climate for Tomorrow” to highlight the sustainable innovation that farmers use to grow more with less. Whether its Nebraska corn farmers producing five times more corn on 20 percent less land or utilizing agronomic, genetic and precision innovations, National Ag Day recognizes the work of those in the industry.

“We are pleased to celebrate and thank those who work in agriculture,” says Kelly Brunkhorst, Executive Director of the Nebraska Corn Board. “Whether it is farmers, seed salesmen, agronomists, economists, or implement mechanics, the agricultural industry keeps Nebraska moving forward.”

We invite you to celebrate with us on Tuesday, March 21. National Ag Day encourages an understanding of how food and fiber products are produced, appreciate the essential role agriculture plays in our society, acknowledge career opportunities within ag and finally to acknowledges the important work of those in agriculture across our country!



Rural Mainstreet Economy Goes Negative for March

After three straight months of readings slightly above growth neutral, the Creighton University Rural Mainstreet Index (RMI) fell below the growth neutral threshold, 50.0, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading in March sank below the growth neutral threshold. The March index slumped to 45.6 from 50.1 in February. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“The Rural Mainstreet economy continues to experience slow, to no, to negative economic growth. Less than 1% of bankers reported improving economic conditions for the month with 92% indicating no change in economic conditions from February’s slow growth,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Farming and ranching: The region’s farmland price index decreased to 63.0 from February’s 63.5. This was the 30th straight month that the index has advanced above 50.0.

Across the region, farmland prices advanced by approximately 9% over the past 12 months.  However, bankers, on average, expect only 1% growth over the next 12 months.

Farm equipment sales: As a result of solid farm financial conditions, the farm equipment-sales index climbed to 59.5 from 52.1 in February. The index has risen above growth neutral for 26 of the last 28 months.

Bank CEOs were asked what interest rate action the Federal Reserve should undertake at their March 21-22 meetings. Approximately 56.5% recommended a 0.25% rate increase; 30.5% supported a 0.50% boost; and 13% advocated no rate change. However, most survey responses were completed prior to recent bank failures.  

According to Jeffrey Gerhart, former Chair of the Independent Community Bankers of America, “It’s too bad that the Fed waited so long to raise interest rates. They could have begun raising interest rates sooner than they did and would not have had to raise them as fast as they’ve done.”  Gerhart applauds the Fed for raising interest rates and its willingness to stay the course to get a handle on inflation.

Below are the state reports:
Nebraska: The Nebraska RMI sank below growth neutral to 48.3 from 53.1 in February. The state’s farmland-price index for March decreased to 63.4 from February’s 64.6.  Nebraska’s March new-hiring index slumped to 46.8 from 49.9 in February. USDA data for the top five exported agriculture products for Nebraska indicate that for the first quarter of fiscal 2023, the state exported $868.8 million. This represented $5.30 per $1,000 of state GDP.

Iowa: Iowa’s March RMI slumped to 46.7 from 56.9 in February. Iowa’s farmland-price index fell to 55.6 from February’s 63.7. Iowa’s new-hiring index for March moved down to 37.1 from February’s 48.8. USDA data for the top five exported agriculture products for Iowa indicate that for the first quarter of fiscal 2023, the state exported $983.9 million. This represented $4.21 per $1,000 of state GDP.

The survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. The index provides the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former Chairman of the Independent Community Banks of America, created the monthly economic survey and launched it in January 2006.



IANR Hosts Department of Animal Science Finalists

The Institute of Agriculture and Natural Resources has selected two finalists in its search for Head of the Department of Animal Science. The candidates will visit Nebraska and participate in public presentations between March 22 – March 29.

The finalists, listed by public presentations date, are:

Dr. Deborah VanOverbeke, Assistant Dean for Academic Programs in the Ferguson College of Agriculture, Oklahoma State University
    Info: https://ianr.unl.edu/head-department-animal-science/about-candidates#vanoverbeke
    Seminar: March 22, 1:30-3:00p Room A222, ANSC Building
    Watch the live stream https://ianrmedia.unl.edu/live-2

Dr. Stanley Hileman, Professor, Department of Physiology, Pharmacology, and Toxicology, West Virginia University
    Info: https://ianr.unl.edu/head-department-animal-science/about-candidates#hileman
    Seminar: March 29, 1:30-3:00p, Room A222, ANSC Building
    Watch the live stream https://ianrmedia.unl.edu/live-2

The candidates, selected through a national search, will spend time with university administrators, faculty, staff and stakeholders. UNL faculty, staff, post-docs, and students, along with members of the public, are invited to attend public presentations and provide feedback.



NeFU District Meetings Schedule  
John Hansen, NE Farmers Union President

Below is the schedule for NeFU Spring District meetings. The post cards went out Tuesday. We were planning for in person meetings, but two curve balls came our way.

First, my doctor grounded me for a couple of weeks because I brought home pneumonia in both lungs from the NFU Convention in San Francisco. Second, our office manager resigned last week without notice. That slows and limits our office logistics.

If we moved meeting dates forward, we feared conflicts with spring field work, so we switched the meetings to virtual so we could get them done sooner.  Thanks for your patience and understanding.

2023 NeFU Spring District Meeting Dates (all meetings are at 7:00 p.m.)
District 2         Monday           March 20
District 4         Tuesday           March 21

District 1-3      Monday          March 27
District 5         Tuesday           March 28
District 7         Thursday         March 30

District 6         Tuesday           April 4

If you want the meeting handouts and the ZOOM link invite that lets you participate by video or by phone, email me info@nebraskafarmersunion.org or call (402) 476-8815 and I will add you to the list for your district.

I will send out the zoom links ahead of the meetings to the email list that I have for each district based on who usually attends. NFU Convention and Nebraska Legislature updates will be given as well as upcoming NeFU events.

All NeFU members are encouraged to participate, members of the public are also welcome.  



USDA Awards Funding to Protect U.S. Cattle Herd From FMD

The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) announced this week that they are awarding the National Cattlemen's Beef Association (NCBA) with $445,396 in funding to advance the Secure Beef Supply Plan (SBS) in the event of a foot-and-mouth disease (FMD) outbreak in the U.S.

“NCBA thanks USDA for awarding this critical funding to help continue defending the U.S. cattle herd from the threat of foot-and-mouth disease. The Secure Beef Supply Plan combined with USDA's national vaccine bank provides a strong safety net for cattle producers and multiple tools to mitigate risk from a potential outbreak," said Allison Rivera, NCBA executive director of government affairs. "This funding was made available through the 2018 Farm Bill, showing why continued support and further funding for animal disease preparation measures like the Secure Beef Supply Plan and the National Animal Vaccine and Veterinary Countermeasure Bank are so important as Congress works on the 2023 Farm Bill.”

Background
The SBS Plan provides guidance on workable business continuity measures for beef cattle operations with no evidence of FMD infection during an FMD outbreak. The SBS Plan is the result of a multi-year collaborative effort by industry, state, federal, and academic representatives to provide guidance on moving uninfected cattle to continue beef cattle production and keep grocery store shelves stocked.



U of M Students Sequence Genome of Newly Discovered Soybean Pest

University of Minnesota students conducted crucial genome sequencing for the newly discovered soybean gall midge — a pest that is threatening the soybean crop, one of the most widely cultivated and consumed throughout the world. This small fly has been found in major soybean-producing states in the Midwest, including Minnesota, Iowa, Nebraska, South Dakota and Missouri.

Pest management has been difficult because scientists have a limited understanding of its biology. Genome sequencing can give stakeholders a deeper understanding of the insect’s biology, as well as provide a suite of tools for detection and identification.

The U of M graduate students, who published their findings in the journal G3: Genes, Genomes, Genetics, were able to obtain the sequence of the insects’ genome using a small fraction of the resources typically afforded to professional sequencing efforts, providing critical information for the development of future pest management strategies.

The first whole genome of the soybean gall midge was sequenced and published by students taking the course Comparative Animal Genomics taught by Christopher Faulk, an associate professor in the Department of Animal Science. Under Faulk's guidance, students had the unique opportunity to perform analyses and contribute to the writing of the publication. Graduate student Gloria Melotto is the first author of the journal article and led this project from the lab of Amelia Lindsey, an assistant professor in the Department of Entomology, and is co-advised by Robert Koch, an associate professor in the Department of Entomology.

They found:
- The genome of the soybean gall midge is approximately 200 million nucleotide bases: less than one-tenth the size of the human genome.

- Their assembly of the sequence has one of the highest completeness levels for a gall midge fly genome and might serve as a guide for studies of related insects.

- This insect is spreading rapidly in the Midwest and this public genome will advance research towards containing it.

"Sequencing an animal genome has historically been extremely expensive and time-consuming," said Melotto. "Since there are typically hundreds of scientists working with millions of dollars, our small team was particularly excited to publish these findings."

The group of 10 students extracted DNA from soybean gall midges collected from a farm in Rock County, Minnesota. They sequenced the insect’s genome in one semester using a commercially available portable long-read sequencer. For approximately $2,000, the students managed to create this genome for a fraction of the cost of typical sequencing, which can be in the millions of dollars.

“This insect was described to science only a few years ago, in 2019. The fact that we can go from the discovery of a new pest, to a class of students publishing a genome sequence in such a short amount of time is a testament to how far the field of genomics has come,” said Lindsey.

The soybean gall midge genome will provide a resource for ongoing and future research focused on the biology, genetics, evolution and management of this pest and other gall midges.

“Having the genome will rapidly advance research into this agriculturally significant pest. Sequencing an animal genome is an impressive feat usually accomplished by consortiums of specialists. Now I am proud to count our students among them,” said Faulk.

This work was supported by the NIH Office of the Director (Flack and Faulk), Impetus Grant (Norn Foundation) (Faulk), the USDA National Institute of Food and Agriculture (Faulk), and the Minnesota Rapid Agricultural Response Fund (Koch and Lindsey).



NCGA Partnership Grant Will Increase Cover Crops, Mitigate Risk

The National Corn Growers Association looks forward to seeing the next steps that will be taken as a part of the Farmers for Soil Health. NCGA is a founding member of FSH, which was awarded the $95 million grant from the USDA’s Partnerships for Climate-Smart Commodities program that makes this work possible.

“This grant provides technical and financial resources to mitigate the risk farmers increasingly face due to severe climate events,” said NCGA President Tom Haag, a farmer from Eden Valley, Minn. “It is exciting to see that this effort to promote cover crops will reach acreage producing over 85 percent of the nation’s corn and soybeans.”

The program, which will help double acreage nationally by 2030, will offer farmers three years of declining cost share payments to help them transition to cover crops. FSH will work with data insights and publishing company DTN to develop a digital platform that will use satellite imagery, allowing farmers to receive an “eco-score” for corn and soybeans produced with cover crops and conservation tillage. This platform will facilitate the marketing of crops to parties interested in securing a documented source of sustainably produced corn and soybeans.

FSH is a collaborative effort of the American Soybean Association, National Corn Growers Association, National Pork Board and the United Soybean Board with the mission to advance conservation practices to improve soil health across the U.S. The grant will fund cost share and technical assistance for cover crops to 8,000-10,000 farmers on 1.44 million acres of corn and soybeans.

To execute this grant, FSH will receive technical assistance from the National Association of Conservation Districts, The Sustainability Consortium, Soil Health Institute, University of Missouri Center for Regenerative Agriculture, National Fish and Wildlife Foundation, DTN, National Center for Appropriate Technology, and Appropriate Technology Transfer for Rural America.



Cattle on Feed Report Preview

Friday's USDA Cattle on Feed report will again show fewer numbers of cattle on feed and lighter placements, but marketings compared to a year ago are expected to be slightly lower.

The biggest unknown variable about this upcoming report lies in the placement data. With a wide range in analysts' estimates from 90% to 96.9%, the market could very well react bullishly if the data finds itself on the lighter end toward 90%.

But with the live cattle and feeder cattle contracts trading lower this week thanks to outside economic pressures, the real question is this: Will this report affect the market? Cattlemen desperately need something to reinvigorate the cattle market's positive morale, and if placements end up significantly lighter than a year ago, maybe this report could reignite the cattle market's fire.

                                Average Estimate        Range           .
On Feed March 1              95.3%              94.2-96.2%
Placed in February            93.1%              90.0-96.9%
Marketed in February       95.7%              95.0-96.0%

USDA will release its March 1 Cattle on Feed at 2 p.m. CDT on Friday.



United Soybean Board’s CEO, Polly Ruhland, Joins FFAR Board of Directors

The Foundation for Food & Agriculture Research (FFAR) is pleased to announce that Polly Ruhland, chief executive officer (CEO) at United Soybean Board, is joining the FFAR Board of Directors.

“Polly’s experience building domestic and global markets, unifying the commodity supply chain and forming partnerships with national and state organizations will greatly benefit the Foundation,” said FFAR Board Chairman Dr. Mark Keenum. “We are excited to welcome Polly to the board and deploy her expertise to advance food and agriculture research.”

Ruhland joined United Soybean Board as CEO in 2017. In this role, she oversees strategic vision of the United Soybean Board and plays a pivotal role in the soybean community at-large. Applying her experience in agricultural nonprofit management, strategic planning, communications and regulatory compliance, Ruhland advances agriculture sustainability through farmer-funded research, education and promotion programs.

“FFAR’s mission of employing science to advance U.S. food and agriculture remains critical to feeding people and sustaining farmers through innovative technology advances,” said Ruhland. “I’m pleased to join my fellow board members and to continue to serve U.S. agriculture in this new way.”

Ruhland previously served as the CEO at Cattlemen’s Beef Promotion & Research Board, where she stewarded beef farmer and rancher investments in the Beef Checkoff research and promotion program. She also chaired the Commodity Roundtable for Chief Executive Officers of Research and Promotion Programs and has served on several community agricultural land-use boards and as an American Farmland Trust volunteer. Additionally, Ruhland was awarded an Eisenhower Fellowship for International Leaders and is a Nuffield Scholar.

“I am thrilled to welcome Polly Ruhland to FFAR’s Board of Directors. Her decades of experience helping U.S. farmers and advancing farmer-funded research and education programs will help FFAR effectively advance its vision of providing everyone access to affordable, nutritious food grown on thriving farms,” said FFAR Executive Director Dr. Saharah Moon Chapotin.

Ruhland received a bachelor’s degree in English from the University of Colorado, Denver and a master’s degree in agriculture from Colorado State University, where her research focused on agricultural education reform and strategic decision-making processes in agricultural cooperatives.



California E85 Sales Skyrocket Past 100 Million Gallons in 2022

Sales of E85 flex fuel in California in 2022 surged 66 percent over 2021 and more than doubled the pre-pandemic record set in 2019, new data released by the California Air Resources Board indicate. Last year, California drivers purchased over 103.5 million gallons (mg) of E85 flex fuel, a blend containing up to 85 percent ethanol and 15 percent gasoline, for use in flex-fuel vehicles (FFVs). That’s up from about 62.5 mg in 2021.

California is one of just a handful of states that reports annual E85 sales volumes. Renewable Fuels Association President and CEO Geoff Cooper said the Golden State continues to lead the way when it comes to offering lower-carbon, lower-cost liquid fuels to consumers.

“Gas prices remain at elevated levels in California, and drivers are seeking out options at the pump that are both more affordable and better for the environment,” Cooper said. “E85 checks both of those boxes. E85 substantially reduces greenhouse gas emissions compared to gasoline, and the fuel typically sells for 25 to 40 percent less in California. This new data show that when E85 is made available and effectively promoted, FFV drivers will absolutely respond.”

Cooper noted that the surge in E85 sales in California is due to a combination of factors. “These results show what is possible when policies like the California Low Carbon Fuel Standard and federal Renewable Fuel Standard are combined with smart promotional and marketing campaigns,” he said. “The California E85 experience should serve as a model for other states to emulate.”

Data from the California Energy Commission, to be updated next month for 2022, show that at the end of 2021 there were more than 1.2 million flex-fuel vehicles on California’s roadways.



RFA Provides Recommendations to California Regarding Low Carbon Fuel Standard Compliance Targets and Modeling

In comments submitted to the California Air Resources Board on potential changes to the state’s Low Carbon Fuel Standard, the Renewable Fuels Association identified several areas in CARB’s proposal and underlying analysis that need improvement. RFA also stressed its support for the LCFS program and desire to see technology-neutral carbon reduction programs adopted in other states or at the national level.

RFA Chief Economist Scott Richman stressed three areas where improvement is needed:
    CARB has all the data needed to support the immediate approval of E15 for use in California, which would reduce pervasive compliance deficits in California’s gasoline pool. Migrating all E10 to E15 in California today would result in approximately 2 million metric tons annually of additional GHG reductions.

    Although the California Transportation Supply (CATS) model used by CARB incorporates the average carbon intensity (CI) of ethanol in the market today and assumes that CI improvements will continue in the future, it assumes that the CI of ethanol produced at facilities using carbon capture and sequestration (CCS) will be flat over time. Richman stressed that, on the contrary, it is reasonable to expect substantial reductions in the CI of ethanol broadly, and that ethanol with CCS in particular is likely to achieve steady reduction and, ultimately, net-zero emissions over the next two decades.

    Finally, the current low credit prices under the LCFS are clearly inhibiting new investment in low-carbon fuel production. The long period of time (up to three years) to update the LCFS given the regulatory process in California is creating uncertainty as to the longer-term trajectory of the program, and the incorporation of a compliance acceleration mechanism into the LCFS could potentially address this problem.

“An accurate modeling of ethanol’s benefits and an integration of CARB fuels policy to incentivize higher ethanol blends will result in immediate reductions of GHG emissions and criteria pollutants while lowering the cost of compliance to obligated parties and California consumers,” Richman concluded. “RFA looks forward to working with CARB staff and other stakeholders to strengthen and extend the successful LCFS program.”



 New Study Showcases Ethanol’s Advantage In Indonesia, Mexico, Nigeria

The U.S. Grains Council (USGC) recently partnered with Turner, Mason & Company (TM&C), a leading energy research and consulting firm, to conduct the Fuel Ethanol Cost-Benefit Analysis Study, quantifying the economic and strategic benefits of blending ethanol in various countries.

“The Fuel Ethanol Cost-Benefit Analysis Study on Indonesia, Mexico and Nigeria provides a baseline model to measure ethanol’s economic benefits. It quantifies the potential savings of the gasoline-ethanol blend when transitioning from E0,” said Stella Qian, USGC senior manager of global ethanol market development.

The study focused on measuring the financial benefits of expanding the use of ethanol from no ethanol usage (E0) to ethanol blends of five percent (E5), 10 percent (E10), 15 percent (E15) and 20 percent (E20) in Indonesia, Mexico and Nigeria. The study also discussed the strategic benefits of ethanol blending from the perspectives of energy transition and energy security.

Ethanol is the only fuel that fits into the categories of both oxygenates and biofuels, allowing it to not only assist in the combustion process and reduce carbon monoxide emissions, but to also reduce greenhouse gas (GHG) emissions. Ethanol blending is also more cost-effective, reducing the cost of gasoline, while the blending of other oxygenates, including methyl tert-butyl ether (MTBE), can increase cost.

Other highlights of the study showcased how the high octane of ethanol allows blending with less costly and lower-efficiency subgrade gasoline to achieve the desired grade octane; and the dilution benefits of ethanol could reduce the level of refinery capital expenditures necessary to achieve increasingly stringent gasoline specifications, among others.

“The results from the study also prove that economic value increases with higher ethanol blending. We hope this study will help our customers further understand both the economic and strategic benefits of ethanol,” Qian said.

Shortly after its release, the study was presented at a virtual roundtable discussion hosted by the Atlantic Council Global Energy Center, a renowned Washington, D.C.-based think tank. The discussion brought together key stakeholders to discuss the economic benefits of blended fuels and opportunities to strengthen the biofuels supply chains in Africa. The Council’s study was presented to highlight the Nigeria-focused results.

“Having the study showcased at an event organized by a reputable organization in the energy field, such as Atlantic Council Global Energy Center, offered a great opportunity to further the discussion of biofuel policy development in Africa. The study findings reveal that ethanol presents a sustainable investment opportunity for African countries working to decarbonize while simultaneously accelerating economic growth,” Qian said.

Moving forward, the Council plans to disseminate the study to key stakeholders in Indonesia, Mexico and Nigeria.



USDA Seeks Nominees for the American Lamb Board

The U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) is seeking nominees for the American Lamb Board (Lamb Board) to succeed five members with terms that expire in early 2024. Nominations are needed to succeed members that include one producer with 100 or less lambs, one producer with more than 500 lambs, one feeder with less than 5,000 lambs, one first handler, and one seedstock producer. The deadline for nominations is May 5, 2023.

Any U.S. producer, feeder, or first handler who owns or purchases lambs may be considered for nomination. To satisfy the requirements of the Lamb Promotion and Research Order, the producers with 100 or less lambs or the producers with more than 500 lambs can be from either of the Lamb Board’s two Regions: the designated area east of the Mississippi River or the area designed west of the Mississippi River. The feeder with less than 5,000 lambs can be from the Lamb Board’s two Regions: the designated area east of the Mississippi River or the area designed west of the Mississippi River. Producers, feeders, and first handlers must be nominated by certified nominating organizations and submit a completed application. The Secretary of Agriculture will select individuals from the nominations submitted.

The 13-member Lamb Board was established to maintain and expand the market for sheep and sheep products. A list of certified nominating organizations, the nomination form and information about the Lamb Board are available on the AMS American Lamb Board webpage and on the boards website, https://www.lambresourcecenter.com/. For more information, contact Barbara Josselyn at (202) 713-6918 or Barbara.Josselyn@usda.gov.