Thursday March 2 Ag News

DMC Program Starts 2023 with Sizeable Payments
NMPF

The Dairy Margin Coverage (DMC) program made payments for only two of the twelve months last year, but it will pay $1.56/cwt for $9.50/cwt coverage for January. The January margin was $7.94/cwt, $1.82 lower than December’s. A one-month drop of $1.60/cwt in the U.S. average all-milk price, to $23.10/cwt, accounted for most of the margin drop. A monthly rise in the soybean meal price accounted for about two-thirds of the remaining margin fall, but higher corn and premium alfalfa prices contributed lesser amounts as well.

Available forecasts currently indicate that the monthly DMC margins will remain below $9.50/cwt until September and average just below $8/cwt for this entire calendar year. Signing up $9.50/cwt coverage for the first five million pounds is always recommended as a cost-effective risk management strategy. Even last year’s two payments more than covered the annual premium cost for that level of coverage. This year will almost certainly return many times the cost of this very affordable means of managing margin risk.

U.S. Dairy Breaks Exports Record for Third Straight Year
U.S. dairy exports set new records in 2022, helped along by work from NMPF in collaboration with the U.S. Dairy Export Council (USDEC), policymakers and stakeholders who delivered on targeted policy priorities.

More than $9 billion of U.S. dairy products reached international customers in 2022, according to data finalized in February. The volume shipped accounted for 18% of total milk production. This marked the third straight record year for volume and the second for value.

In a year full of challenges, NMPF was proud to work with members and policymakers to find solutions to support dairy exporter, including:
    Successfully pursuing solutions to the supply chain crisis, most notably on the Ocean Shipping Reform Act.
    Defending U.S. dairy’s market access rights against barriers to trade in markets around the world including in Europe, Latin America, Canada, Southeast Asia and the Middle East.
    Strengthening and expanding key partnerships to grow the global dairy industry’s influence with governments and organizations around the world.



Dairy Business Builder Grants Now Accepting Applications

The Dairy Business Innovation Alliance (DBIA) has opened their Dairy Business Builder Grant for 2023. Grants are distributed to dairy based farms and processors in Illinois, Iowa, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin.

DBIA aims to support small-to medium-sized dairy business in diversifying on-farm activity, creating value-added products, enhancing dairy by-products, and creating or enhancing dairy export programs.

Since its creating in the 2018 U.S. Farm Bill, the DBIA has administered technical assistance and over $3.7 million in grant to dairy businesses in five midwestern states. Additional funding from the U.S. Department of Agriculture is now supporting an expansion of the program’s service area to include Indiana, Kansas, Michigan, Missouri, Nebraska, and Ohio.

A “Helpful Hints” webinar was recorded on Feb. 21 and will be posted to the website soon. Applications are due April 13 at 6 p.m. EST.



Study: RFS Slashed GHG Emissions by 1.2 Billion Metric Tons Since 2008

A new analysis from a renowned carbon accounting firm finds that the greenhouse gas emissions reductions achieved under the Renewable Fuel Standard far exceed the GHG savings originally projected by EPA. In the 15 years since the RFS was expanded, the use of biofuels under the program has resulted in cumulative savings of more than 1.2 billion metric tons of carbon dioxide-equivalent GHG emissions, with corn ethanol providing the largest share of GHG reductions.

The results are being presented and discussed this morning at the 2023 National Ethanol Conference in Orlando, Fla.

“The RFS2 has resulted in significant GHG reductions, with cumulative CO2 savings of 1,212 million metric tonnes over the period of implementation to date,” according to the study, which was conducted by Life Cycle Associates. “The GHG reductions are due to the greater than expected savings from ethanol and other biofuels, including continuous technology investments reducing the carbon intensity (CI) for corn ethanol.”

In more recent years, increased use of renewable natural gas and renewable diesel has also led to significant GHG reductions. Notably, the study found, “these emissions savings occur even though cellulosic biofuels have not met the RFS2 production targets.”

“This report demonstrates that the RFS has been remarkably successful in driving down carbon emissions from the transportation sector,” said RFA President and CEO Geoff Cooper. “In fact, the RFS is the only federal program on the books today that requires the use of lower-carbon fuels in our vehicles. And we’re just getting started. Our producer members have unanimously committed to achieve net-zero carbon emissions by 2050 or sooner, and this report shows we are well on our way toward that goal thanks to new technology and efficiency improvements both on the farm and at the biorefinery.”

The new report is an update to previously published studies in 2021 and 2019. It was conducted for the Renewable Fuels Association by Stefan Unnasch, Debasish Parida and Brian Healy of Life Cycle Associates.

Cooper noted that the Life Cycle Associates study adds to the growing body of research on ethanol’s GHG benefits.
    According to the Department of Energy’s Argonne National Laboratory, typical corn ethanol provides a 44-52% GHG savings compared to gasoline.
    Similarly, researchers from Harvard, MIT, and Tufts concluded that today’s corn ethanol offers an average GHG reduction of 46% versus gasoline.
    Analysis by USDA found that some biorefineries could soon produce ethanol that offers a 70% GHG reduction versus gasoline.
    Data from the California Air Resources Board shows that ethanol used in the state is reducing GHG emissions by nearly 40% compared to gasoline, on average, (even with an exaggerated GHG penalty for hypothetical land use change) with some U.S.-produced ethanol providing 65-80% GHG reductions.



USGC Joins Senator Duckworth In Japan To Discuss Increased Ethanol Possibilities

U.S. Grains Council (USGC) staff and representatives from the Illinois Corn Marketing Board (ICMB) were accompanied by Illinois Senator Tammy Duckworth to Tokyo, Japan in late February to meet with Japanese auto manufacturers, FAS Tokyo, U.S. Ambassador to Japan Rahm Emanuel and Ministry of Economy, Trade and Industry (METI) officials to discuss Japan’s commitment to double ethanol consumption by 2030.

Imports of ethanol to Japan are in the form of ethyl tert-butyl ether (ETBE) and the U.S. achieved market access following a change in Japan’s policy in 2018 and U.S. ethanol’s low carbon properties. The Council estimates U.S. ethanol totaled about 140 million gallons of ethanol in the form of ETBE during marketing year (MY) 2021/22.

“The U.S. industry’s most recent and previous missions continue to build on the momentum of Japan’s energy policies. It is paramount that ethanol is included in these lasting regulations that will not only benefit Japan, but also serve as an example for other countries interested in ethanol utilization," said Isabelle Ausdal, USGC manager of global ethanol policy and economics.

Japan is in the process of revising its Energy Plan by April 2023, which will be the determining factor in the immediate uptake of ethanol in the country. Japan’s METI oversees Japan’s energy policy, which includes how ethanol is to be utilized in the country. The U.S. industry discussed different ways to incorporate ethanol blending directly into the gasoline supply at three (E3) to 10 percent (E10). The policy will be revised in April 2023 and is expected to allow full market access for U.S. corn ethanol.

“Ethanol blending in Japan is estimated to be equivalent to less than E2 but utilizing higher blends of ethanol such as E10 will enable Japan to realize all the carbon dioxide (CO2) reduction benefits. Japan’s accelerated efforts to reduce its emissions through the use of scientifically proven low carbon fuels such as ethanol is a testament to how far policy can come when a country rises to the occasion,” Ausdal said.

In addition to creating market access for U.S. ethanol, the mission was also a time to discuss sustainable aviation fuel (SAF), the carbon reduction benefits of ethanol and the reliability of the U.S. ethanol supply. Representatives from Japan’s All Nippon Airways (ANA) and Boeing were present at a biofuels panel hosted by the U.S. embassy to hear from ICMB and other industry representatives about ways to utilize corn ethanol-based SAF within their policies.

“Visits by the U.S. corn and ethanol industries to meet with the Japanese government and industry are an important step for the Council to work on creating a higher blending market in Japan,” said USGC Director in Japan Tommy Hamamoto.



Employ Plant Health Promotor is Now Certified for Tank-mixing with Popular Herbicides

Wilbur-Ellis Agribusiness and Plant Health Care are pleased to announce that Employ, an advanced biochemical plant health promoter, has been certified by leading crop protection companies for tank-mixing with a select group of row crop herbicides. Used successfully for many years in fruit and vegetable production to improve yield and crop quality, Employ is expected to be adopted by soybean, cotton and corn growers seeking to maximize yields by applying Employ in conjunction with early-season herbicide applications.  
 
Employ Boosts Crop Productivity, Yield  
When applied on the plant foliage in early growth stages, Employ initiates a Systemic Acquired Resistance (SAR) response that turns on the plants' own growth and stress-defense capabilities. Roots grow more vigorously, and plants are more resilient under stress created by disease, insects, pathogens and nematodes as well as when facing environmental challenges such as flooding, drought, heat and cold temperatures. As a result, crop quality and yields are improved.  
    Increases Average Soybean Yield when applied V3-R1  
    Activates Systemic Acquired Resistance (SAR)—signaling a whole-plant response to disease, insects and nematodes  
    Decreases abiotic and biotic stress, increasing yield and grower ROI  
    No AI restriction—cost-effective tank-mix partner  

“In recent years, farmers have faced more environmental stresses from weather extremes and the pests and pathogens that come with those extremes. An application of Employ, over-the-top in the initial herbicide application stimulates the plants’ natural defenses reducing the impact of crop stress throughout the growing season and helping them deliver higher yields at harvest. We’re excited to offer this technology to corn, soybean and cotton growers for the 2023 season,” said Chris Wooley, Wilbur-Ellis Specialty Actives Portfolio Manager.  
 
Always read and follow the manufacturer's instructions for use of these products. Not registered for use in all states.  
 
To learn more about Employ, visit https://www.wilburellisagribusiness.com/product/employ.  



NGFA announces speaker lineup for 127th annual convention

During the National Grain and Feed Association’s (NGFA) 127th annual convention on March 21-23, top agribusiness leaders will gather at the La Quinta Resort & Club in La Quinta, Calif. to address upcoming opportunities for grain, feed, processing and export markets.

“This year’s convention includes a stellar lineup of agribusiness leaders and federal regulatory officials to address and meet with NGFA members. They will provide insightful and timely perspectives on emerging issues for the agricultural value chain, including important transportation investments, risk management assessments, consumer behavior and political outlooks,” NGFA President and CEO Mike Seyfert said. “We are expecting an exceptional turnout for the convention this year and I look forward to meeting new and familiar faces in La Quinta. We also look forward to welcoming the new class of the NGFA Committee Apprentice Program (CAP) and our National Grain and Feed Foundation scholarship winners from the Minorities in Agriculture, Natural Resources, and Related Sciences (MANRRS) student society.”

More speakers will be announced before the event. Confirmed general session speakers and presentations so far include:

•    “How Consumer Preferences on Sustainability and Diversity are Shaping Your Business” with Erin Condon, director of diversity, inclusion and culture at CGB Enterprises, Megan Rock, chief sustainability officer at CHS Inc., and Steve Wittbecker, chief sustainability officer at CoBank (March 22 Opening General Session)

•    “NGFA Chairman’s Address” featuring Greg Beck, senior vice president, grain, CGB Enterprises, Inc. (March 22 Opening General Session)

•    “Industry Keynote Address” featuring Donnie Smith, chairman and CEO of Foster Farms (March 23 Closing General Session)

•    “A Conversation with the CFTC Chairman” with Rostin Behnam, chairman of the Commodity Futures Trading Commission (March 23 Closing General Session)

•    “2022 Mid-Term Election Analysis” with David Wasserman, senior election analyst at The Cook Political Report with Amy Walter and NBC contributor (March 23 Closing General Session)

The convention also includes a Transportation and Technology Open Forum on March 21 featuring leaders in rail and waterways (in order of appearance):

•    “Expectations for the US Freight Rail System in 2023” with Ian Jefferies, president and CEO of the Association of American Railroads

•    “STB Update” with Michelle Schultz, board member of the Surface Transportation Board

•    “The State of our Navigation Infrastructure” with Thomas Heinold, operations division chief at the U.S. Army Corps of Engineers for the Rock Island District

View the convention schedule https://imis.ngfa.org/convention, which includes information on NGFA business meetings, the golf tournament to benefit the National Grain and Feed Foundation and networking events.



 Bayer Fund Awards More than $13M to U.S. Nonprofit Organizations in 2022, Following Latest Round of Grants Totaling $5.2M

Bayer Fund, a philanthropic arm of Bayer in the U.S., is proud to announce today that it has provided a total of $5.2M in grant funding, spanning across 600 organizations, in the second half of 2022. This latest round of grants raised Bayer Fund’s 2022 giving total to more than $13.4 million across 2,700 charitable and nonprofit organizations to help address essential needs in Food and Nutrition, STEM Education and Health & Wellness.

As part of Bayer’s broader vision of ensuring Health for All, Hunger for None, each Bayer Fund grant goes towards programs that help solve some of the country’s – and world’s – biggest challenges, including access to food and nutrition, STEM education and health and wellness. Bayer Fund is excited to give back to communities by providing funding that helps strengthen organizations through impactful programs that align with our primary giving priorities,” said Al Mitchell, President of Bayer Fund. “We’re proud to support these organizations and the impactful work they do in our shared communities with these grant awards.”

Three organizations that are being recognized for their philanthropic grant work from Bayer Fund are 412 Food Rescue (Food & Nutrition), Fontbonne University’s Girls in Science Research Programs (STEM Education), and Crossroads4Hope (Health & Wellness).

Food & Nutrition
Bayer Fund supports high-quality food and nutrition programs that aim to ensure access to healthy and nutritious foods. These programs support underserved communities, rural communities, and families in need.

Pittsburgh, PA-based 412 Food Rescue was awarded $50,000 in grant funding to support its Good Food Project. The organization’s mission is to prevent food from unnecessarily being wasted, redirecting it to those experiencing food insecurity. Through its programs and partners, 412 Food Rescue hopes to reach 100 cities by 2030.

“Launched in 2019, the Good Food Project, has stabilized over 76,000 pounds of healthy surplus food by creating zero-waste heat-and-eat meals for Allegheny County neighbors in need,” explains Meg Bernard, Vice President of Development for 412 Food Rescue. “To date, the project has distributed more than 63,000 meals. With the Bayer Fund’s generous support, we will be able to achieve kitchen capacity and feed more individuals experiencing food insecurity in Allegheny County.”

STEM
As part of Bayer Fund’s focus on STEM Education (Science, Technology, Engineering and Mathematics), grant funding for STEM programs is provided to organizations with high quality educational programs that empower students and teachers.

Fontbonne University in St. Louis, MO was awarded $20,000 in grant funding for its Girls in Science Research Programs. Each year two-dozen girls from 7th to 9th grade participate in the program. During the experience, the girls work directly with Dr. Kelly Lane-deGraaf, the founder of the program, to learn and practice basic biology skills in fields such as genetics, animal behavior, and even coding.

“Since 2015, Girls in Science has enabled middle school students to explore possible future careers in science and interact with minority and female scientists while in a college setting,” said Dr. Heather Sweeney of Fontbonne University. “Thanks in large part to continued support from Bayer Fund, Girls in Science has doubled in size and scope annually and is now reaching approximately 300 girls every year.”

Health & Wellness
Bayer Fund’s Health & Wellness pillar focuses on patients and their families that need assistance with managing cardiovascular disease and cancer. This support includes funding for educational programs, awareness, and support services for their diseases.

Crossroads4Hope, located in Bedminster, NJ, was awarded $125,000 in grant funding for its Support4Families program. Through this program Crossroads4Hope provides psychosocial support for families facing cancer, as well as their communities. The support is age specific, offering tailored programming for children and teens.

“We are so grateful to The Bayer Fund for funding the critical work we do through our Support4Families program,” says Katherine Schaible, Senior Director of Program and Impact at Crossroads4Hope. “This grant will help us continue to provide direct support to parents and their children throughout the New Jersey/New York metro area, as well as across the country, as they navigate the impact cancer has on their family unit.”

Since 2017, Bayer Fund has awarded nearly $90 million to nonprofit organizations across the U.S.