Tuesday February 28 Ag News

 Spring preparations around the ranch
Alfredo DiCostanzo, NE Extension Beef Systems Educator

Although still a month away, springtime represents a busy time for ranchers and managers of cow-calf operations.  As indicated before in this column, potential for greater revenue is much greater in 2023. Live cattle futures are at $159/cwt or greater for all contracts in 2023 while fed cattle sales averaged $160/cwt in Nebraska for the week ending on February 17.  Feeder cattle sales averaged $244/cwt for steer calves weighing 501 to 547 lb and from $193/cwt for steers weighing from 700 to 749 lb for the same week in Nebraska.  Incidentally, cow-calf operations that retained calves since weaning in the fall of 2022 have a high probability of selling backgrounded yearlings this spring at a price close to par to the price they would have sold calves at weaning last year.  This positive profit potential does not happen very often.  

Springtime preparations around the ranch include marketing backgrounded calves, determining what the endpoint will be for fall-born calves, calving and breeding season preparation.  Because the potential for profit from backgrounded or stocker calves in the spring or summer, and weaned calves in the fall is high, managing and feeding cattle to ensure health, fertility and growth should be key priorities of springtime preparations.  

Continued management of calves growing since fall weaning to permit from 2.0 to 2.5 lb gain daily will prevent backgrounded calves from over-fleshing.  On the other hand, because feed resources may have been limited, gains between 1.8 and 2.0 lb daily are nothing to worry about particularly if feed inputs were relatively low (2 to 4 lb of distillers grains or a grain-based supplement and a forage source, hay or corn stalk grazing).  Calves in the latter group would likely need longer days on backgrounding to reach target weights above 700 lb.  

Yard conditions in backgrounding lots have also been a challenge.  Managing yards to prevent excessive mud accumulation on haircoat will prevent excessive maintenance energy needs.  Similarly, lice infestations occur as weather turns warmer after a cold and wet winter.  If possible, running cattle through the chute to delouse (and monitor weight, if a scale is available) should prevent excessive hair loss, which could lead to increased energy requirements for maintenance.  

Similar recommendations are in order to manage yards and cattle in fall-calving herds already in a drylot or when cornstalk grazing ends.  Additionally, if weaning is still 60 days away or farther,  creep feeding of fall-born calves, those that will be sold at weaning, may be a profitable strategy this spring.  

In addition to the recommendations above for managing yards and cattle, managers of spring-calving herds should consider evaluating body condition score.  Mature cows that have lost condition because of low feed availability will need to calve at a body condition score of 5; those cows coming with their first or second calf should actually be in body condition score 6 at calving.

Whether there is time before cows calve or they are already calving, increasing dietary energy concentration is key to ensure that a high proportion of cows rebreed this summer.  Minimum dietary energy and protein concentration in diets of close-up cows or those that have calved should be 58% total digestible nutrients (TDN) and 12% crude protein.  As a general rule of thumb, one could use 1 lb of a high-energy feed, such as corn or dry distillers grains, for every 1 percentage unit difference between recommended TDN concentration and available forage TDN concentration.  Assuming 2% of the cow’s body weight as an estimate of dry matter intake (28 lb for a 1,400-lb cow) and availability of hay containing 53% TDN (5 percentage unit difference between 58% and 53%), a rancher presented with this scenario would be advised to supplement 5 lb of corn or distillers grains per cow prior to or after calving.  Cows on stalks would also benefit from a similar supplementation approach.  In this example, distillers grains would have the advantage of containing greater protein concentrations; therefore, negating the need to consider additional supplemental protein.

Comments in this column are based on protein and energy needs.  Vitamin and mineral supplementation needs must also be considered.  Please work with your local feed dealer or nutritionist to ensure that a vitamin and mineral supplementation plan is developed and implemented based on grazing, forage and feeding conditions of your operation.

Lastly, as if there wasn’t enough to consider, breeding season is around the corner.  In some cases, bulls are expected to join the cowherd in May or June:  that is only 60 to 90 days away.  

Bull body condition score and breeding soundness need to be evaluated 60 to 75 days before bulls join cow groups.  Body condition score of bulls should be 6 at the beginning of the breeding season.  Cow-calf ranchers and managers observing bulls at a body condition score under 6 will need to make plans to put on 100 lb or more per bull in 60 to 90 days (from 1 to 1.2 lb gain daily between March 1 and breeding season start).  

Determination of breeding soundness is strongly recommended, particularly this year, after extreme cold temperatures and little forage cover.  Bull soundness exams should be scheduled with the operation’s veterinarian at your earliest convenience.  

A consideration this year (and perhaps into the future), bull batteries are planned with the idea that a bull should comfortably cover 20 to 30 cows.  There are many cases, I would say most, that this ratio is overestimated (too few bulls per cow group).  Factors such as bull age and experience, bull age differences, wintering conditions, terrain, use of synchronization protocols, and breeding groups (size of breeding pasture and size of cow group) should be taken into consideration.  In general, yearling bulls, large differences in bull age within breeding group, hard winters, rough terrain, use of synchronization protocols, and large breeding groups ought to make ranchers and managers consider tightening cow-to-bull ratio (placing more bulls in a breeding group).  

At a cost of $5,000 per bull (life expectancy 4 years, maintenance cost $1,500/year, and $1,500 salvage value), reducing cow-to-bull ratio from 25- to 15-to-1 increases mating cost (simply running the bull among the cows not considering pregnancy rate) from $95 to $158/cow.  At 90% pregnancy rate, bull costs per cow increase to $106 and $176, respectively.  The difference:  $70 per pregnancy per cow disappears rapidly if a bull exposed to 25 cows fails to impregnate a single cow in 100 (from 90% to 89% pregnancy rate).  At yearly cow maintenance costs of $1,150 per cow, a single cow coming up open after the breeding season in a group of 100 cows costs the operation $115/cow.  

As winter gives way to spring, may the Lord bless ranchers and managers of cow-calf operations with spring conditions that set up good growth and fertility of cattle and grass for the remainder of the growing season.  In the meantime, please remain focused and purposeful while feeding and managing cattle, particularly at calving.  Your health and safety depend on it.



Cuming County Cow-Calf Association to Meet

The Cuming County Cow-Calf Association will be holding their annual membership dinner on Tuesday, March 21, at the Pizza Ranch in West Point. Social at 5:30 p.m. and Dinner at 6:00 p.m. This is open to anyone who may be interested. Dan Wolfe (Boehringer-Ingelheim) will discuss “De-worming Strategies” and there will be time for conversation and Q&A with Alfredo DiCostanzo, UNL Extension Educator in Cuming County.



SPRING PLANTING ALFALFA
– Todd Whitney, NE Extension Educator

Alfalfa can be successfully seeded in the spring or fall depending on field weed populations, moisture conditions, and timing. Based on higher snowfall, our 2023 spring may be a very successful time to establish new alfalfa stands.

Although it may be tempting to drill or broadcast more seeds into open spaces in thin alfalfa fields; remember that live alfalfa roots emit an ethylene chemical toxin which impedes new alfalfa growth. This ‘autotoxicity’ weakens or kills any new alfalfa plants and accumulates in soil over time. Therefore, it is better to drill into new fields; than seed where previous older alfalfa plants have been grown within the past 1 to 2 years.

Once established, alfalfa as a perennial can complete well with weeds. If herbicide resistant weeds are currently growing on fields, then light tillage may be needed to control weeds while creating a firm drilling seedbed. Also, combination light tillage plus herbicide may provide improved seedling establishment. Since new alfalfa seedlings are very susceptible to herbicide injury, carefully follow any chemical label restrictions. Usually, new alfalfa plants must reach two to four trifoliated leaf development before herbicides are applied; noting that 2,4-D usage is not recommended.

Glyphosate-tolerant or Round-up Ready varieties provide more flexibility for controlling weeds currently growing in fields. Initial glyphosate application should occur between alfalfa emergence and 4th trifoliate leaf growth stages to remove non-glyphosate tolerant alfalfa seedlings and control weeds that are present.

Target seeding ¼ to ½ inch depth in the fine-textured soils and ¾ inch depth in sandy soils. Seedlings placed too shallow will dry out rapidly and die due to poor roots. While seeds planted more than 1 inch deep may be unable to emerge after germinating. Further establishment guidelines are outlined in the UNL “Seeding Alfalfa” NebGuide G2247.



Proposed bill would hit reset button for hemp in beleaguered Nebraska

Nebraska hemp stakeholders are hoping for passage of a bill that would align the state’s hemp program with federal rules, suggesting the changes could revive the fortunes of the crop after most farmers fled hemp over the last few years.

The measure would increase the THC “negligence threshold” from 0.5% to 1.0%, allowing for the remediation of crops that go over the 0.3% limit for hemp, and loosen testing and harvesting restrictions. It would also increase the harvest window from 15 to 30 days, allow more options for the destruction of hemp crops that exceed acceptable THC levels, and put the Nebraska Hemp Commission on an annual meeting schedule instead of quarterly.

Nebraska farmers grew just 260 acres of hemp in 2021, according to the National Agricultural Statistical Service (NASS), part of the U.S. Department of Agriculture (USDA). That’s down massively after the state recorded 4,609 acres of licensed hemp cultivation in 2019, and 2,602 acres in 2020, according to USDA figures. Meanwhile, the number of licensed growers, which peaked at 84 in 2019-2020, is down to 22, according to state agriculture statistics.

The hemp crash in Nebraska, as in other states, comes amid the drastically diminished fortunes of the CBD sector, where demand did not reach inflated expectations and oversupply caused prices to plunge by as much as 90% over the past three years.

Sherry Vinton, Director of the Department of Agriculture, has testified in support of the bill, which she said is similar to a measure debated last year but not passed, and includes a provision that allows the state to adjust its rules as the federal Farm Bill is updated every five years. The next Farm Bill is being negotiated and will be floated late this year.

Another hemp bill proposed by State Sen. Steve Halloran of Hastings, chairman of the Senate Agriculture Committee, would eliminate the stand-alone Nebraska Hemp Commission and instead create the Nebraska Hemp Advisory Board under the oversight of the Department of Agriculture.

John Hansen, president of the Nebraska Farmers Union, said his organization backs both measures.



Center, coalition ask Congress to protect conservation funds in next farm bill  

On Monday, the Center for Rural Affairs joined more than 600 organizations, businesses, and farms to urge U.S. House and Senate Agriculture Committee leaders to protect historic investments in conservation and climate-smart agriculture.

The Inflation Reduction Act (IRA) of 2022 allocated almost $20 billion over five years to the U.S. Department of Agriculture for conservation programs with climate impacts. Among the investments are $3.25 billion for the Conservation Stewardship Program (CSP) and $8.45 billion for the Environmental Quality Incentives Program (EQIP).

In a letter, a broad coalition of signatories called on Congress to ensure funding is directed to its intended programs as lawmakers develop the next farm bill.

“This is the largest investment into agriculture conservation and rural communities in decades and farmers, ranchers, and foresters across the country are depending on these resources,” the letter reads.

CSP and EQIP are working lands conservation programs, meaning they support producers in implementing conservation practices on land actively used for agricultural production. They help producers adopt practices that build soil health, sequester carbon, improve water quality, promote resiliency, and more. The programs are voluntary and provide both technical and financial assistance.

“CSP and EQIP have historically been underfunded and oversubscribed,” said Kate Hansen, senior policy associate with the Center. “Year after year, we see producer demand unmet due to limited funds. IRA investments present a robust opportunity to get more conservation practices on the ground, across the country.”

A recent Center survey of CSP users in the Midwest and Great Plains highlights the program’s impact. Of the more than 400 respondents, nearly 79% said the program helped them afford conservation practices, and about 77% said the program helped them improve soil health.

“Keeping these IRA funds in conservation programs, as intended, will be a win for farmers, ranchers, and our natural resources,” Hansen said.



Flood Co-Leads Bipartisan Letter Pushing for Additional Foreign Ag Land Oversight

U.S. Congressman Mike Flood recently co-led a bipartisan letter to the U.S. Department of Agriculture with Rep. Elise Stefanik (R-NY) urging the agency to conduct oversight of foreign acquisition of U.S. agricultural land. Rep. Mark Pocan (D-WI) and Rep. Rick Crawford (R-AR) also co-led the letter which was signed by more than two dozen members.

“Our country’s land is inextricably linked to our national security, food supply, and energy resources,” said Rep. Flood. “At a time when foreign ownership of our country’s farmland is rightly coming under increased scrutiny, complete reporting will help ensure the American people have all the information they need to steward the future of our land and natural resources.”

“Food security is national security, and I am demanding answers for why USDA failed to do its job to protect U.S. agricultural land from our foreign adversaries,” Rep. Stefanik said. “Our nation is currently faced with the increasing threat of foreign adversaries like China undermining our agriculture industry, encroaching on our military bases, and threatening our food security. The USDA’s failure of due diligence is inexcusable. There must be accountability, so we do not cede any awareness or ownership of our food supply to foreign actors working against the United States.”



Rep Adrian Smith to participate in CCFN webinar on common food names

The confiscation of generic food names is a real threat for U.S. and global manufacturers using names that entered the marketplace long ago and have been part of the public domain for generations. Members of Congress will discuss the need for heightened U.S. efforts to level the playing field in an upcoming webinar on March 1 at 4 p.m. ET.

“U.S. farmers and ranchers are some of the most competitive in the world,” said Agri-Pulse Editor Sara Wyant. “But they need to be able to label and market products in the same way that they have been doing for decades – like using terms such as ‘parmesan,’ ‘chateau,’ and ‘bologna’ both domestically and on the international market.”

During the common food and beverage names event, you’ll have a chance to hear remarks on the state of common name regulation worldwide, the importance of U.S. government engagement on the issue and efforts to help defend common food names in the upcoming farm bill.

Speakers include:
•    Representative Adrian Smith, R-Neb.
•    Representative Jim Costa, D-Calif.
•    Senator Tammy Baldwin, D-Wis.
•    Senator Roger Marshall, R-Kan.

The event is sponsored by the Consortium for Common Food Names (CCFN).



Grants Awarded From the Iowa Renewable Fuels Infrastructure Program

Twenty-three Iowa locations in 16 different counties were awarded more than $1.1 million in cost-share grants from the Iowa Renewable Fuels Infrastructure Program (RFIP) during the latest quarterly application cycle.

The RFIP helps fuel retailers provide higher blends of lower cost Iowa grown biofuels to consumers by incentivizing the installation, replacement and conversion of ethanol and biodiesel dispensing and storage infrastructure. Incentives to upgrade biodiesel terminal and storage facilities are also available. While the Iowa Department of Agriculture and Land Stewardship manages the program, a board appointed by the Governor and confirmed by the Iowa Senate determines grant allocations on a quarterly basis.

“We want consumers to spend less at the pump and increasing the usage of higher ethanol and biodiesel blends is one big way for Iowans to save money,” said Iowa Secretary of Agriculture Mike Naig. “The Renewable Fuels Infrastructure Program continues to be highly successful at helping retailers install new infrastructure so that consumers across the state can easily utilize lower cost and cleaner burning Iowa grown biofuels.”

Locations in 16 Iowa counties received cost-share grants, totaling $1,117,144.98, for renewable fuels infrastructure upgrades during the last quarterly meeting of the RFIP board. Counties with locations receiving grants includes the following: Johnson, Pottawattamie, Jasper, Winneshiek, Dubuque, Polk, Black Hawk, Benton, Adair, Union, Lucas, Scott, Muscatine, Carroll, Calhoun and Woodbury. The complete list of locations can be found here.

The RFIP was appropriated $10 million in funding for the current fiscal year as a result of transformational biofuel legislation that was passed and signed into law during the 2022 Iowa legislative session.  To date, $4,955,120 of that funding has been awarded to 102 biofuel infrastructure projects. The program leverages significant private investment by the participating fuel retailers.

The Renewable Fuels Infrastructure Fund Board is expected to meet two more times to make awards for this fiscal year. The RFIP grant application is available on the Iowa Department of Agriculture and Land Stewardship’s website.  

The breakdown of the funding for this fiscal year, so far, is as follows:
    $270,000 to 6 E85 projects
    $3,135,120 to 64 E15 projects
    $1,250,000 to 26 Biodiesel projects
    $300,000 to 6 Biodiesel Terminal projects

Over the history of the program, the state has invested approximately $60 million while private industry has invested over $200 million. To learn more about the Renewable Fuels Infrastructure Program, visit the program’s webpage on the Iowa Department of Agriculture and Land Stewardship’s website.



Spring Crop Insurance Prices Set

Spring reference prices for crop insurance were set at $5.91 per bushel of corn, $13.76 per bushel of soybeans and $8.87 per bushel of spring wheat, as the market closed on Tuesday, Feb. 28.

The spring reference price for corn is almost the same as last year's $5.90 per bushel, but the soybean estimate is more than $1 lower than last year's record-setting $14.33 per bushel price. This year's spring wheat price also trails last year's $9.19 estimate.

The spring reference prices are computed by averaging the daily closing price of the December corn, November soybean and September spring wheat contracts throughout February. Those numbers are combined with the farm's actual production history (APH) to determine a level of revenue to establish the crop insurance guarantee. Farmers can elect to insure up to 85% of that revenue, with most choosing to purchase 75%, 80% or 85% depending on what the premiums are in their area.



NFU President Rob Larew Provides Testimony to House Agriculture Committee

National Farmers Union (NFU) President Rob Larew today testified before the United States House Committee on Agriculture for a hearing titled “Uncertainty, Inflation, Regulations: Challenges for American Agriculture.”

In his testimony, Larew addressed the themes of the hearing.

On inflation:
“Family farmers and ranchers are particularly vulnerable to the effects of inflation. Supply chain disruptions have set the stage for rising costs for farmers and ranchers. These inflationary pressures are intensified by a lack of market competition in the food system.”   

On uncertainty:
“One of the greatest sources of uncertainty farmers face is climate change. We’re on the front lines of climate change, with shifting weather patterns and increasingly severe weather events making farming more unpredictable and difficult.”

On regulations:
“NFU believes family farmers and ranchers should be allowed to do what we do best: sustainably produce food, feed, fiber, and fuel. Regulations, when needed, should be science-based, size- and risk-appropriate, clear, and only implemented after thorough feedback.”

In conclusion:
“By working together, we can overcome the challenges presented by faulty regulations, mounting uncertainty, and inflationary pressures.  

NFU launched the Fairness for Farmers campaign to shed light on the devastating impact that monopolies and near-monopolies have on family farmers, ranchers, and our communities. That’s why we’re calling for a Competition Title in the Farm Bill.”



USDA Agricultural Prices:  January Prices Received Index Down 9.7 Percent

The January Prices Received Index 2011 Base (Agricultural Production), at 124.6, decreased 9.7 percent from December but increased 11 percent from January 2022. At 118.1, the Crop Production Index was down 8.3 percent from last month but up 13 percent from the previous year. The Livestock Production Index, at 136.3, decreased 9.7 percent from December, but increased 9.7 percent from January last year. Producers received lower prices during January for market eggs, lettuce, milk, and broccoli, but higher prices for cattle, oranges, corn, and apples. In addition to prices, the volume change of commodities marketed also influences the indexes. In January, there was decreased marketing of milk, market eggs, cattle, and grapes and increased monthly movement for corn, soybeans, wheat, and strawberries.

Crop production: The January index, at 118.1, is 8.3 percent lower than December but 13 percent higher than January 2022. The vegetable & melon and other crop index decreases more than offset the fruit & tree nut increase.

Grain and oilseed: The January index, at 113.6, is unchanged from December but up 14 percent from January 2022. Oilseed and feed grain index increases offset the lower food grain index.

Feed grain: The January index, at 110.6, increased 0.5 percent from last month and 18.7 percent from a year ago. The corn price, at $6.64 per bushel, is up 6 cents from last month and up $1.06 from January 2022.

Food grain: At 123.0, the index for January decreased 4.3 percent from the previous month but increased 4.2 percent from a year ago. The January price for all wheat, at $8.82 per bushel, is 16 cents lower than December but 34 cents higher than January 2022. The January price for rice, at $19.10 per cwt, is $1.30 lower than December and $2.00 higher than January 2022.

Oilseed: At 115.9, the index for January increased 1.0 percent from December and 12 percent from January 2022. The soybean price, at $14.50 per bushel, is 10 cents higher than December and $1.60 higher than January a year earlier.

Other crop: The January index, at 107.2, is down 2.5 percent from the previous month and 0.6 percent from January 2022. The all hay price, at $228.00 per ton, is $7.00 lower than December but $40.00 higher than January 2022. At 80.2 cents per pound, the price for upland cotton is 4.2 cents lower than December and 16.1 cents lower than January 2022.

Livestock production: The index for January, at 136.3, decreased 9.7 percent from the previous month but increased 9.7 percent from January a year earlier. The poultry & egg, dairy, and meat animal indexes are all down.

Meat animal: At 122.2, the January index decreased 1.3 percent from the previous month but increased 10 percent from a year earlier. At $58.50 per cwt, the January hog price is $4.00 lower than December but 30 cents lower than a year earlier. The January beef cattle price of $156.00 per cwt is
$2.00 higher than the previous month and $21.00 higher than January 2022.

Dairy: The index for January, at 114.9, is down 6.5 percent from the previous month and 4.6 percent from January a year ago. The January all milk price of $23.10 per cwt is $1.60 lower than December and $1.10 lower than January 2022.

Poultry and egg: At 188.6, the January index decreased 22 percent from December but increased 18 percent from January 2022. The January market egg price, at $2.92 per dozen, is $1.85 lower than December but $1.66 higher than January 2022. The January broiler price, at 70.5 cents per pound, is 2.1 cents lower than December and 8.5 cents lower than a year ago. At $1.20 per pound, the January turkey price is 2.0 cents lower than the previous month but 33.3 cents higher than January 2022.

Food Commodities: The index, at 132.2, decreased 12 percent from the previous month but increased 11 percent from January 2022.

January Prices Paid Index Up 0.9 Percent
The January Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 139.0, is up 0.9 percent from December 2022 and 7.0 percent from January 2022. Higher prices in January for interest, feeder pigs, taxes, and feeder cattle more than offset lower prices for nitrogen, diesel, hay & forages, and other machinery.



‘Checkoff Reform’ Legislation Introduced to Prevent Agriculture Trade Groups from Treating Farmers’ Money as Political Slush Fund
(Press Release)

Today, Animal Wellness Action (AWA), the Organization for Competitive Markets (OCM), the Center for a Humane Economy (CHE), and the National Dairy Producers Organization (NDPO) applauded U.S. Reps. Nancy Mace, R-S.C., and Dina Titus, D-Nev., and U.S. Sens. Mike Lee, R-Utah, Cory Booker, D-N.J., Rand Paul, R-Ky., Elizabeth Warren, D-Mass., and Kirsten Gillibrand, D-N.Y., for introducing the bicameral, bipartisan, Opportunities for Fairness in Farming (OFF) Act.

The measure is designed to reform and bring accountability and transparency to reform the USDA’s Commodity Checkoff Programs that have long been plagued by scandal after scandal for misappropriation of funds, lack of transparency, and misusing farmer and rancher tax dollars and was first introduced in the 115th Congress. Proponents of the OFF Act argue that national livestock trade associations work against the best interests of rank-and-file family farmers and work to benefit the industrial agriculture and international processors.  

The OFF Act would amend the authorizing checkoff laws to ensure the programs cannot contract with organizations that engage in lobbying, conflicts of interest, or anticompetitive activities that harm other commodities. It would also require that they publish all budgets and disbursements of funds for the purposes of public inspection and submit to periodic audits by the USDA Inspector General. The measure is supported by more than 250,000 farmers and ranchers across America in an unlikely coalition of allies that include OCM, Animal Wellness Action, NDPO, the American Grass-fed Association, the National Taxpayers Union, and the National Farmers Union to name a few.

Commodity checkoff programs (“checkoff programs”) were established to serve as mechanisms by which agricultural industries pool money for common commodity-specific promotional and research purposes. Fees are mandatory, from the smallest local farmer to the largest factory operation. Checkoff dollars go to federal, industry-specific boards, which are required by law to use these funds for mutually beneficial advertising campaigns and research.

Under federal law, farmers of certain commodities (including pork, eggs, beef, and corn) are required to pay a portion of their sales into checkoff programs. These mandatory fees are intended to be used by the U.S. government to research and market those commodities. Well-known examples of past checkoff-funded advertising campaigns are “Got Milk,” “Pork. The Other White Meat,” “The Incredible, Edible Egg,” and “Beef. It’s What’s for Dinner.” Checkoff programs collect over $850 million from America’s farmers and ranchers every year.

Despite the limited purpose of the checkoffs, checkoff programs have repeatedly acted beyond the scope of their statutory mandate. Lax oversight by the USDA has resulted in collusive and illegal relationships between checkoff boards and lobbying organizations, both of which have repeatedly used checkoff funds to influence legislation and government action despite a broad statutory prohibition. Such advocacy efforts have an anticompetitive effect and are forcing traditional family farmers to pay into a system that actively works against them.

The OFF Act was first introduced in the 115th Congress by Rep. Titus and former Rep. Dave Brat, R-Virg., in the U.S. House and Sens. Lee and Booker in the U.S. Senate and a 2018 Farm Bill amendment that mirrored the OFF Act was one of only three amendments afforded a vote in the U.S. Senate, but the measure was not included in the final farm bill signed into law.



NCBA Condemns House and Senate Bills Aimed at “Checkoff Reform”

Legislation introduced today in the House and Senate represents nothing more than another attempt to allow activists to dictate to producers. Sens. Booker and Warren have long been supported by animal rights groups, and this collective group of bill sponsors has worked long and hard to dismantle our industry’s only self-funded promotion and education effort. Sens. Cory Booker (D-N.J.) and Mike Lee (R-Utah), and their partners Sens. Rand Paul, (R-Ky.), Elizabeth Warren (D-Mass.) and Kirsten Gillibrand (D-N.Y.) introduced the Senate bill. Reps. Nancy Mace, (R-S.C.), and Dina Titus, (D-Nev.) introduced the House bill.
 
“In 2021 cattle producers overwhelmingly denied a referendum to end the Checkoff with detractors coming nowhere near the required signatures to petition for the termination of this vital program. The Beef Checkoff has a long track record of support among cattle producers,” said NCBA president and South Dakota cattleman Todd Wilkinson. “Congress has plenty of work to do that could be far more beneficial to Americans. They should focus in areas of urgent need, rather than wasting time on these unwelcome “reform efforts,” that would only benefit anti-agriculture activists.
 
The Checkoff’s legality and current implementation has already been upheld by multiple federal courts and, last year, the Supreme Court denied a petition challenging the Checkoff. Cattle producers understand the high return on investment and increase in beef demand the Checkoff provides.
 
“For every dollar paid into the Checkoff program, $11.91 is returned in producer profit and between 2014-2018 total domestic beef demand increased by 12.8 billion pounds. Any legislation that would hurt beef promotion efforts is tantamount to taking money directly out of cattle producers’ pockets,” said Wilkinson. “The introduction of the “Opportunities for Fairness in Farming Act of 2023” represents Senators Booker, Lee, Paul, Warren, and Gillibrand working to subvert the will of U.S. cattle producers. NCBA will always stand firm in its support of the U.S. Beef Checkoff program and will continue to fight the animal rights groups and the members of Congress who assist them in their efforts to end animal agriculture.”



NCBA Calls Again for Immediate Halt to Brazilian Beef Imports

Last week, Brazil reported another atypical case of bovine spongiform encephalopathy (BSE) to the World Animal Organization for Animal Health (WOAH). That report indicated 35 days elapsed between when the case was first identified on January 18, 2023, and the date it was confirmed on February 22, 2023. This represents an unacceptable delay that is in clear violation of WOAH reporting requirements. It is clear that Brazil is incapable of prompt testing and the reporting requirements that all nations must follow when engaging in international beef trade. Because of a repeated pattern of delayed reporting, the National Cattlemen’s Beef Association (NCBA) is calling on Secretary of Agriculture Tom Vilsack to take immediate action to indefinitely suspend beef imports from Brazil until it has made systemic reforms and takes necessary steps to restore confidence in the nation’s ability to participate in the global beef supply.

“We have seen Brazil repeatedly fail to meet the 24 hour requirement for reporting of animal diseases listed by WOAH. In order to protect the safety and security of the U.S. herd, and American cattle producers, we demand USDA take immediate steps to block further beef imports from Brazil,” said NCBA president and South Dakota cattleman Todd Wilkinson. “Furthermore, we expect USDA to keep the border closed to Brazil until they can demonstrate that they are willing and able to play by the trade rules that govern all other nations. If they can’t play by the rules, they don’t deserve access. Secretary Vilsack needs to act now, rather than kicking the can down the road.”

Yesterday, NCBA sent a letter to USDA, demanding immediate action on this issue. NCBA is also supportive of bipartisan Senate legislation to suspend Brazilian beef imports pending a review of Brazil’s standards.

“For too long, American cattlemen and women have honored the laws governing international trade, promoting fair and equitable standards, only to have nations like Brazil ignore those same standards.  Brazil cannot be allowed to benefit from the investments we have made to build a massive demand for beef around the globe,” said Wilkinson. “If trade partners like Brazil fail to follow the rules, there must be consequences, they must be painful and immediate.”



EIA Data Indicate Ethanol Blend Rate Hit a Record High in 2022

Data released today by the U.S. Energy Information Administration for 2022 show that ethanol volumes continued to recover from the pandemic-affected levels of 2020 and that the ethanol blend rate (i.e., the national average ethanol content of gasoline) hit a record 10.39 percent, pushing far beyond the so-called blend wall. U.S. ethanol production rose two percent to 15.36 billion gallons (bg) in 2022, while domestic consumption increased modestly to 13.98 bg.

The ethanol blend rate exceeded 10% every month and reached a peak of 10.79 percent in October. Ethanol was often priced at a substantial discount to gasoline, and prices of renewable identification numbers (RINs) used for compliance with the Renewable Fuel Standard sustained their value from late 2021, both of which enhanced the economics of mid- and high-level blends of ethanol. Additionally, retailers were able to offer E15 (a blend containing 15% ethanol) year-round.

EIA indicated that sale volumes of E85 hit a record high. While national-level data are not maintained for E15, the Minnesota Department of Commerce recently reported that sales in the state were the highest ever in 2022.

“In a year when American consumers had to pay record prices for gasoline due to tight petroleum markets, ethanol helped expand the fuel supply and kept prices from going even higher,” said Renewable Fuels Association President and CEO Geoff Cooper. “Drivers who had access to E15 and E85 experienced significant savings, and the administration should ensure that E15 can be sold year-round in 2023 so that consumers can continue to save.”



New Study: Ethanol Industry’s Impact on the U.S. Economy Strengthened in 2022

The ethanol industry’s contribution to the U.S. economy increased in 2022 as production volumes continued to recover from COVID pandemic levels and producers received higher prices for ethanol and co-products like distiller grains and corn oil, according to an analysis conducted for the Renewable Fuels Association by ABF Economics.

In 2022, more than 78,800 U.S. jobs were directly associated with the ethanol industry, with an additional 342,800 indirect and induced jobs supported across all sectors of the economy. The industry created $34.8 billion in household income and contributed just over $57 billion to the nation’s gross domestic product—the second-highest GDP contribution ever. The jobs, GDP, and household income values exhibited significant increases from 2021 levels.

“The U.S. ethanol industry continues to make a vital contribution to the nation’s economic well-being,” said RFA President and CEO Geoff Cooper. “Last year, as our country battled historic inflation and economic uncertainty, the industry supported more than 400,000 good-paying jobs and spurred reinvestment in rural communities across the country. And as gas prices hit record highs in 2022, ethanol producers increased their output of lower-cost, lower-carbon renewable fuel to help deliver economic relief to consumers around the world.”

The 2022 report also shows that the industry spent nearly $47 billion on raw materials, other inputs, and goods and services to produce ethanol last year, with corn purchases alone accounting for more than $38 billion. The report also provides a breakdown of economic impacts and jobs supported by the ethanol industry in major ethanol-producing states in 2022.

“The ethanol industry continued to make a significant contribution to the economy in terms of GDP, job creation, generation of tax revenue, and displacement of crude oil and petroleum products in 2022,” the report concluded. “The importance of the ethanol industry to agriculture and rural economies is particularly notable. Growth and expansion of the ethanol industry as it applies new technologies and addresses new markets will enhance the industry’s position as the original creator of green jobs and will enable America to make further strides toward reducing greenhouse gas emissions and positively dealing with climate change.”



NMPF Praises Re-Introduction of DAIRY PRIDE Act, Calls on Congress to Finish FDA’s Job

NMPF commended a bipartisan group of senators, led by Sens. Tammy Baldwin, D-WI; Jim Risch, R-ID; Peter Welch, D-VT, and Susan Collins, R-ME, for re-introducing the DAIRY PRIDE Act, which would end the problem of consumer confusion of the nutritional content of plant-based beverages the Food and Drug Administration took inadequate steps to remedy last week.

“DAIRY PRIDE is needed more than ever, now that FDA has offered guidance on the labeling of plant-based beverages that, while taking steps in the right direction, ultimately doesn’t remedy the problem it seeks to solve, which is the proven confusion among consumers created when plant-based beverages steal dairy terms to make their products appear healthier than they really are,” said Jim Mulhern, president and CEO of the National Milk Producers Federation.

“FDA has acknowledged the problem of nutritional confusion without providing a complete solution,” Mulhern said. “DAIRY PRIDE solves the problem by requiring FDA to enforce what its own standards of identity state: that ‘milk’ is a term reserved for animal products and that plant-based drinks or beverages shouldn’t be allowed to use dairy terms in their labeling.”

The Defending Against Imitations and Replacements of Yogurt, Milk, and Cheese To Promote Regular Intake of Dairy Everyday Act” aka DAIRY PRIDE, requires FDA to enforce its standards of identity and would supersede the inadequate solution it offered last week, in which plant-based beverages could call themselves “milk” as long as they clearly state their nutritional differences with real dairy. While the long-awaited guidance acknowledges the need to address consumer confusion, it does not resolve the cause of the problem, which is imitators using dairy terms. The logical solution is to limit dairy terms to dairy products, which DAIRY PRIDE would achieve.

FDA is accepting comments on its draft guidance until April 24. Meanwhile, DAIRY PRIDE introduction in the House of Representatives is expected within weeks.

“Consumers and dairy producers, along with their allies in the nutrition and health communities, thank Sens. Baldwin, Risch, Welch and Collins for their leadership in this important public-health issue,” Mulhern said. “We look forward to working with our Senate and House champions to enact the DAIRY PRIDE Act during the 118th Congress.”



Approaching Farm Bill Quickest Way to Return to “Higher of” Milk Pricing

Farm Bill discussions are underway, including the future of federal milk pricing. In fact, there is some unfinished business from the previous Farm Bill with consensus among dairy producers and organizations to return the Class I pricing formula to its previous ‘higher of’ method that was changed legislatively to an ‘averaging’ method in the last Farm Bill. That change did not go through a hearing process or a producer referendum.

For the grassroots American Dairy Coalition (ADC), it’s been the topic of meetings, conference calls, producer surveys and other outreach for several years. Since early 2021, ADC has been calling for a change back to the ‘higher of’ for the Class I mover formula.

Separately, ADC has included in its 2023 priorities the push for a more comprehensive Farm Bill hearing on the future sustainability of Federal Milk Marketing Orders (FMMO) as Class I pool revenues continue to decline and more manufacturers opt out of FMMO participation. Only Class I processors are required to participate in FMMOs, which are the only structure for dairy pricing reports and transparency, payment oversight, weights and measures and other functions.

“We believe the Farm Bill should be used as the vehicle to expeditiously return the Class I mover to the ‘higher of’ method. We are also looking ahead more comprehensively at the FMMOs. The change to the averaging method for Class I was passed by Congress with language that a hearing could be held to consider alternatives after two years. It has now been almost four years, and dairy farmers are still waiting, while having lost almost $1 billion, net, in Class I value over the past 45 months,” said Laurie Fischer, ADC CEO.

“It appears that USDA may receive a petition from processors for an FMMO hearing limited to raising their ‘make allowances’, which could take another $1.00 per hundredweight out of farmer milk checks. We see National Milk Producers Federation is still working on coordinating a set of modifications for an FMMO hearing petition, but their timetable has been delayed. ADC does not support make allowance increases for processors without fixing the change made to Class I and without a comprehensive national hearing with a report to Congress that looks at solutions for a sustainable pricing structure,” she explained.

“We are pleased that Senator Kirsten Gillibrand recently re-introduced her Dairy Pricing Opportunity Act, which would require USDA to hold an administrative hearing on the Class I mover, including the 'higher of' option. However, farmers deserve to have a more immediate re-do of the Class I method, which would allow a future hearing to look at more comprehensive long-term solutions. Class I needs immediate attention because the change to it in the last Farm Bill puts all the risk on farmers with a cap on the benefit and no floor on the losses it can create in farm milk checks. It undermines the way their risk management tools function and leaves them vulnerable to increasingly volatile market shifts amid geopolitical uncertainty,” said Fischer.

“Furthermore, the Farm Bill is the vehicle needed to help shape a direction for longer-term federal milk pricing solutions that address the long-term sustainability of FMMOs that are based on Class I fluid milk utilization. But first, we need to expedite putting the Class I formula back the way it was. Remember, there was no hearing for the 2018 change and no dairy farmer input. To be candid, most Remember, dairy farmers didn't even know the change was made until the unintended consequences hit their milk checks,” said Fischer.




Calling all Ag Entrepreneurs: Apply for Farm Bureau Ag Innovation Challenge

The American Farm Bureau Federation, in partnership with Farm Credit, is seeking entrepreneurs to apply online for the 2024 Farm Bureau Ag Innovation Challenge. Now in its 10th year, this national business competition showcases U.S. startup companies developing innovative solutions to challenges faced by America’s farmers, ranchers and rural communities.

Farm Bureau is offering $165,000 in startup funds throughout the course of the competition, which will culminate in the top 10 semi-finalists competing in a live pitch competition in front of Farm Bureau members, investors and industry representatives at the AFBF Convention in January 2024 in Salt Lake City, Utah.

“The future of agriculture and rural communities depends on successful innovation,” said AFBF President Zippy Duvall. “Through the Ag Innovation Challenge, we’re pleased to recognize start-up companies that provide solutions to problems facing rural America and support farmers in their mission to provide the food, fuel and fiber we all rely on.”

Applications remain open through May 12, and the 10 semi-finalist teams will be announced Sept. 12. Each of the semi-finalist teams will be awarded $10,000 and a chance to compete to advance to the final round where four teams will receive an additional $5,000 each. The final four teams will compete to win:
    Farm Bureau Ag Innovation Challenge Winner, for a total of $50,000
    Farm Bureau Ag Innovation Challenge Runner-up, for a total of $20,000
    People’s Choice Team selected by public vote, for an additional $5,000 (all 10 semi-finalist teams compete for this honor)

Prior to the live pitch competition, the top 10 semi-finalist teams will participate in pitch training and mentorship from Cornell University’s SC Johnson College of Business faculty, and network with representatives from the Agriculture Department’s Rural Business Investment Companies.

Recent winners of the Ag Innovation Challenge include NORDEF, a company that developed technology to produce diesel exhaust fluid at the point of use (2023 Ag Innovation Challenge Winner) and Grain Weevil Corporation, a grain bin safety and management robot that improves farmer well-being by controlling risks and costs (2022 Ag Innovation Challenge Winner). Other examples of successful Ag Innovation Challenge participants, as well as detailed eligibility guidelines and the competition timeline, can be found at fb.org/challenge.

Entrepreneurs must be members of a county or parish Farm Bureau within their state of residence to qualify as top 10 semi-finalists. Applicants who are not Farm Bureau members can visit https://www.fb.org/about/get-involved#join to learn about becoming a member.

Applications must be received by 11:59 p.m. Eastern Daylight Time on May 12.



Rebuilding the Cattle Herd Starts With Rebuilding Pastures

Cattle economics point toward favorable conditions in the coming years. Jeff Clark, Market Development Specialist, Corteva Agriscience, advises producers to begin readying their operations now, starting with their pastures and rangeland.

“Grazing is such an integral part of cattle production — from cow-calf to stockers,” Clark said. “Whether due to too little or too much moisture, our grazing lands have taken a beating. They need recovery. And that takes time.”

Clark recommends producers extend a gentle hand of management through 2023. Record herd liquidation during recent years presents an opportunity to reduce grazing pressure or extend rest periods.

“Before producers consider buying or renting more hard-to-find pastureland, we recommend taking action to improve the grazing acres they already have,” he said. “That approach can help enhance profit potential.”

Clark suggests producers consider these four steps during 2023:
    Manage moisture for maximum benefit. To help speed drought recovery, control low-value, undesirable plants — including viney blackberry/dewberry and opportunistic volunteer trees — ensuring moisture goes toward grass recovery, rather than to growing weeds. In rain-saturated areas, weeds will aggressively outcompete forage grasses. For broadleaf weeds, a residual herbicide, such as DuraCor® herbicide, will help control biennial thistles and other weeds early, along with later-emerging species, like ragweed.
    Add flexibility in grazing management. Crossfencing to split a larger pasture into two smaller pastures allows producers to switch paddocks based on the level of production and the amount of rest needed for the previously grazed pasture to recover. This can help improve forage utilization and allow for greater rest-recovery periods.
    Consider cultural practices to boost productivity. Incorporating weed and brush control, fertilizer according to soil test or overseeding where needed can help restore productivity. In states where offered, UltiGraz℠ Pasture Weed & Feed saves an application cost by combining herbicide and fertilizer in a single pass.
    Focus on becoming a low-cost producer. Remember: Grazed forages represent the cattle producer’s lowest-cost feed source. Investing in pasture improvement is an excellent cost-management strategy. Don’t overlook opportunities to prebook fertilizer, herbicides, feed, hay and other inputs when pricing is favorable, as well.

“Herd rebuilding or expansion must start with enabling grazing land to support the additional animals over the long term,” Clark said. “Your trusted advisers, such as Extension specialists, consultants or industry experts — including those from Corteva Agriscience — can help you make the best decisions for your operation.”

Learn more about how intensifying pasture management can provide the vital foundation for herd expansion at RangeAndPasture.com/ROI.