Wednesday April 5 Ag News

 CONTINUED BELOW-AVERAGE PRECIPITATION REDUCES GROUNDWATER LEVELS

Groundwater levels have declined in most of Nebraska following multiple years of below-average precipitation, University of Nebraska–Lincoln scientists found in a new statewide analysis. About three-quarters of the 4,787 observation wells across the state experienced groundwater level declines during 2021-22.

The Conservation and Survey Division, the natural resource survey component of the School of Natural Resources, compiled the findings in its latest groundwater level report.

For most of the observation wells, the net change in groundwater level was less than 20 feet since predevelopment times — before the widespread use of groundwater for irrigation.

Nebraska still retains a relatively abundant share of the High Plains aquifer system, in contrast to the situation in areas such as western Kansas and northern Texas, where the depletion of the aquifer has been severe, with major negative consequences for local agriculture.

But the survey’s findings highlight the direct negative effects that prolonged below-average precipitation can have on groundwater levels. During the 2020-21 period, 96% of weather reporting stations in Nebraska (166 out of 172) reported below-average precipitation. During the 2021-22 period, 68% of the stations (122 of 179) reported precipitation levels below the 30-year average.

The below-average precipitation values, combined with increased need for irrigation water to maintain crop yields, resulted in groundwater-level declines of more than 10 feet in some parts of the state, university scientists found.

“Changes in groundwater levels in Nebraska are largely dependent on annual fluctuations in precipitation,” said Aaron Young, survey geologist with the School of Natural Resources. “The hotter and drier a growing season is, the less water is available for aquifer recharge, and more water is required for supplemental irrigation of crops, resulting in groundwater-level declines.”

In contrast, wetter years mean that less supplemental irrigation water is required and more water is available for aquifer recharge.

Nebraska’s recent groundwater-level declines are concerning, Young said, in that some wells may need to be drilled deeper if drought conditions persist.

Although Nebraska has, on average, not seen declines in groundwater levels like those seen in Kansas or Texas, the degree of groundwater level change in Nebraska since predevelopment has varied greatly among individual areas, ranging from increases of more than 120 feet to declines of about 130 feet. For most of the state, the net change in groundwater level since predevelopment times has been less than 20 feet.

Parts of Chase, Perkins, Dundy and Box Butte counties, in contrast, have experienced major, sustained declines in groundwater levels due to a combination of factors. Irrigation wells are notably dense in these counties, annual precipitation is comparatively low, and there is little or no surface-water recharge to groundwater there.

The Conservation and Survey Division report was authored by Young and University of Nebraska–Lincoln colleagues Mark Burbach, Susan Lackey, Matt Joeckel and Jeffrey Westrop.

A free PDF of the report can be downloaded at https://go.unl.edu/groundwater. Print copies can be purchased for $7 at the Nebraska Maps and More Store, 3310 Holdrege St. Phone orders are accepted at 402-472-3471.



WILL LAST YEAR’S DROUGHT LEAD TO SEVERE GRASSHOPPER OUTBREAKS?
– Samantha Daniel, NE Extension Educator

Based on last year’s drought conditions and 2022 adult grasshopper surveys, much of central and western Nebraska is projected to be moderate to high risk for grasshopper outbreaks this season. Does that mean severe grasshopper outbreaks in forages and rangeland will occur? Not necessarily.

Grasshoppers tend to thrive in dry, hot conditions and are most likely to cause damage in forage and rangeland in areas with less than 30 inches of annual rainfall. The western two-thirds of Nebraska fall into this precipitation category, so why aren’t grasshopper outbreaks a severe issue every year? Outbreaks can be severely limited by cool, wet spring weather conditions. Cool temperatures and more spring rainfall increases the time required for grasshoppers to mature which increases juvenile mortality. This in turn reduces defoliation and the number of eggs produced for the following year’s population.

If spring conditions turn out to be favorable for grasshopper development and potential subsequent outbreaks, there are measures producers can take to mitigate defoliation in forage and rangeland. Properly managing forages and rangeland according to accepted practices can mitigate the effects of grasshopper feeding and scouting when grasshoppers begin to hatch in May will ensure producers stay one step ahead of grasshopper populations.



PEN PAL PROJECT BOOSTS UNDERSTANDING BETWEEN RURAL, URBAN FFA MEMBERS

Whether worn in the country or city, the iconic blue and gold jackets of FFA chapters stand out — a symbol of a Nebraska-wide institution that impacts rural and urban areas.

Nebraska FFA members have been discussing that subject this school year through a Pen Pal letter exchange between rural and Omaha members. The process has helped the teens gain a better understanding of the state and its range of experiences.

Many of the Pen Pals met face to face recently on the University of Nebraska–Lincoln’s East Campus as part of the 2023 Nebraska FFA State Convention. Stacie Turnbull, state director of agricultural education with the Nebraska Department of Education, has been a key leader in coordinating the Pen Pal project with FFA chapters.

The project has provided “a great networking opportunity to see how other students around the state view agriculture and how they do different things in their ag classrooms and FFA chapters,” said Katelyn Shimic, a junior at Gering High School. “It’s a cool opportunity to learn from their experiences and how they benefit from ours.”

At one of the tables in a new collaboration space on East Campus, FFA members Erika Munguia and Carolina Thompson from Omaha Bryan High School and Megan Kindschuh and Lexie Eckhoff from Axtell High School chatted after weeks of exchanging letters.

The central benefit of the letter exchange has been “seeing the big differences between the urban agriculture versus the rural agriculture that we see back in our small town,” Kindschuh said.

Munguia lived in Lexington before moving to Omaha, so she has experience in rural and urban settings.

Omaha “is such a different environment,” she said. “You don't have a cornfield right across the street, or cows or anything like that. So, it was nice to be able to write to people who do have these experiences and who don't live in these really busy areas. We could see how their experiences differed from mine, and what they get to do versus what I get to do and how we both are learning typically the same things but in different ways. It's just cool to see.”

Encouraging these low-key, friendly conversations among rural and urban FFA members has great value, said Allison Claussen, ag educator and FFA adviser with Pender Public Schools.

“It’s a casual conversation you might not be able to have without this program,” she said.

The Omaha Bryan FFA chapter got the ball rolling on the Pen Pal project after the chapter’s members saw during last year’s convention how greatly their experiences in Omaha can differ from those in the state’s rural communities.

The Omaha Bryan chapter is one of the state’s largest. Since its creation in 2012, it’s gone from 60 members to about 200, said Taylor Wilton-Cooper, the school’s FFA co-adviser and instructor in urban agriculture, food and natural resources curriculum.

Omaha Bryan’s Urban Ag Academy has a range of activities to help FFA members learn about the variety of Nebraska agriculture. The students have had visits from representatives of the Nebraska Wheat Board, Nebraska Pork Producers and Midwest Dairy. Students have learned about food science and visited City Sprouts, a community garden.  

It may seem odd that Omaha Public Schools would have started an Urban Ag Academy at Omaha Bryan, but the creation of the program connects directly to key points that often arise in discussion of present-day agriculture. First, it benefits Nebraska and society as a whole when urban residents understand where food comes from. Second, modern agriculture needs a strong workforce pipeline that includes urban residents. The U.S. ag sector each year has about 141,800 job openings, but economists estimate that about 40% of those jobs go unfilled.

Filling job openings is important for direct farmland production but also for the wide range of additional career opportunities in modern agriculture. The Department of Agricultural Leadership, Education and Communication at Nebraska lists more than 300 such career options for students. Examples include food-science laboratory technician, agricultural equipment technician, water quality engineer, ag teacher, forester, ag economist, communications specialist and wholesale sales representative.

The Pen Pal project helps Omaha students see the notable variation in the state’s agriculture. Corn and soybean tower as key crops, it’s true, but that isn’t the whole story. Ag teacher Carrie Johns, whose FFA students at Gering High School participated in the Pen Pal project, noted that “our Panhandle gets lumped in with the rest of central and eastern Nebraska, as they think we're all corn, soybeans, cattle.” But, she said, “out here we're very diverse — potatoes, sunflowers, alfalfa, wheat, sugar beets, dry edible beans. We actually have a couple farmers growing mint. We have quite the variety of crops.”

That’s not all: “We irrigate differently, as well. We do have pivot irrigation, but we also have canal irrigation.”
 
Jacie Bonneau, a senior at Pender High School who participated in the Pen Pal project, said the letter exchanges help by enabling rural FFA members to explain that rural life is much more than stereotypes.

“We see people that aren't from rural Nebraska sometimes stereotyping agriculture about what they think it is, but it's a lot more,” she said. “It's not just the animals or the crops. There's more to it. Doing that Pen Pal really helps, so people don't stereotype. They actually see what agriculture is in a larger sense.”



 Vyhnalek retires from Nebraska Extension

Two weeks after Christmas in 2007, Allan Vyhnalek received a call from the Platte County Sheriff’s Office about the suspicious machine gun ammunition box that he left near the secured boundary of the hydroelectric power plant in Columbus the previous summer. It was deemed a threat and blasted open by shotgun attached to a state patrol robot on Christmas Day. The sheriff’s office sought an explanation.  
Vyhnalek, at the time an educator with Nebraska Extension in Platte County, begrudgingly explained that the box, which has been marked and placed with permission, was part of a 4-H geocaching program that taught students how to use compasses and electronic GPS devices to locate hidden stashes of knick-knacks like bouncy balls and pencils. In his next breath, he then offered to conduct his GPS training for the entire county sheriff’s department — a proposal he asked the deputy to pass along.

Vyhnalek will retire from Nebraska Extension on April 7 after spending the past six years as a statewide educator for farm and ranch transition and succession. Though the Platte County Sheriff never took up his training offer, the interaction demonstrated Vyhnalek’s unwavering passion for educating that has driven his entire career.  

That was kindled at the University of Nebraska-Lincoln where Vyhnalek, who grew up on a farm in Saline County, earned his bachelor’s and master’s degrees in agricultural education, with a stint in between teaching high school ag in Elgin.

“After I graduated with my master’s in 1980, I was really looking for an opportunity in extension, but nothing was available, so I caught on at NCTA in Curtis,” Vyhnalek said about the Nebraska College of Technical Agriculture in the southwestern Nebraska community.

He spent the next seven years there teaching animal science, which he enjoyed before moving on when the school was facing the threat of closure during the farm crisis. Still wanting to pursue his goal of working in extension, he was hired as a 4-H educator with Iowa State University Extension in 1987, eventually directing the 4-H program in Grundy County, Iowa.  

“The most important thing I think I did in Grundy County was help revitalize the fair board to be one that supports 4-H and the county fair, and we ended up with really nice things happening at the fairgrounds in terms of revitalizing buildings and overall support for the 4-H program.” he said.  

In March 2001, Vyhnalek and his wife, Mindy, made the move back to Nebraska when he accepted an agricultural educator position in the Platte County Extension office in Columbus.  

“I had several roles in Platte County, but I settled on farm management, teaching good farm lease practices and farm succession planning,” he said. “Those are the two things I think I made the most difference with.”

Vyhnalek’s knack for using his educational platform to make an impact across generations contributed to a positive and collaborative culture in the Platte County office, where success was celebrated among colleagues.  

Lisa Kaslon, currently the professional development coordinator with Nebraska Extension, worked with Vyhnalek in the Platte County office as a 4-H youth development educator. “Allan had always wanted to work for Nebraska Extension, so when he got the chance to come to Platte County, he was committed to making the most of it,” she said.

It was there that Vyhnalek began his work to become an “expert and focused” educator in farm and ranch succession, which eventually led him to his current role, Kaslon added.

Vyhnalek said that he has always tried to work on the most important issue that he could have an impact on. He realized that keeping rural communities alive was at the top of the list and helping people through the estate planning or succession processes was vital to that effort.

“You look at Nebraska and agriculture, you realize it’s a very aging population, so I thought about what I could do on the farm succession side, because that’s an aspect of rural development,” Vyhnalek said. “For every handful of farms in an area you lose, you risk losing one business on main street. There’s a real consequence.”

In 2017, Vyhnalek moved to Lincoln when Nebraska Extension was looking for an educator who could focus on farm succession issues on a statewide basis. He accepted a position in the Department of Agricultural Economics, where has been based since. During his succession programs for producers and industry stakeholders, he often stresses that much of what he talks about does not come from a textbook but from his own experiences and from talking with Nebraskans.

“I receive lots of comments about the number of stories I tell when teaching,” he said. “I’m not trying to bore anyone, but I use them to illustrate the points I make in the lessons. Without grounding in real life, educational bullet points on slides can ring hollow.”

Larry Van Tassell, a professor and former head of the Department of Agricultural Economics, has observed how well Vyhnalek’s methods resonate with people. He praised Vyhnalek’s use of storytelling to connect with audiences and said that it helps them to better understand the concepts at a level that inspires them to act.  

“Allan can connect with a new landowner or with the multi-generation farming family who wants to hand it down to the next generation. He knows the power of experience and emotion when teaching adults,” Van Tassell said.

Vyhnalek has continued to work on land management, leasing and farm bill education over the years, but his unique focus on succession has taught the lifelong educator a lot along the way.  

“The most gratifying thing about teaching succession is also the most frustrating thing – there is always something new to learn, no matter how much I think I know. My teaching constantly changes and I have to adapt,” he said. “Every family is different and needs different help, and different advice for their situation.”

Vyhnalek and his wife, Mindy, who retired from a career in extension several years ago, are looking forward to spending more time with their two children and grandchildren, as well as the freedom to travel more. The couple have already planned some trips shortly after his last day of work. He said that he won’t miss some parts of his job, like stacking chairs and hauling meeting materials across the state. But for someone who has spent his entire career as an educator, realizing his goal of working in extension, somethings will be more difficult to let go.  

“I really enjoy talking to people and doing my lessons, and thinking about how I can make people do better for themselves for their future,” he said. “And I’ll really miss so many people at the university who have been awesome to work with.”  

Vyhnalek’s passion for education has led him to affect the lives of everyone from elementary to high school students, beginning farmers or ranchers to retiring landowners, and many others. His lasting impact on agriculture in Nebraska and Nebraska Extension will be thanks to the many relationships built during his career, his ability to relate to almost anyone, his knack for distilling complicated information and his genuine respect for rural Nebraska and the wellbeing of its people.  

A retirement reception for Vyhnalek will be held from 1 to 3 p.m. on April 7 in the Massengale Residential Center’s multipurpose room, 1710 Arbor Drive, on East Campus. It is open to everyone.  



Nebraska Soybean Board to Provide Matching Funds for Applications of Soy-Based Dust Control

The Nebraska Soybean Board (NSB) is launching the DustLock™ Matching Funds Program to support the increased use of the soy-based product that improves dust control and road stabilization. The program will provide a funds match of up to $10,000 per location to those looking to improve road conditions with a cost-effective alternative to other permanent surfaces. NSB staff and DustLock™ will review matching funds requests, and selected product applications will take place during the summer of 2023.

For the DustLock™ Funds Matching Program, examples of potential application areas include, but are not limited to: fairgrounds, grain processing complexes, feed mixing areas, community development projects, service roads, construction sites, public gathering places, campgrounds and parking lots.

Ideas for the program began after August of 2022, when the Nebraska Soybean Board (NSB) sponsored an application of DustLock™ to nearly three miles of roads surrounding the Husker Harvest Days site. This demonstration led to much attention and inquiries about the use of DustLock™ in various capacities throughout Nebraska.

“After the demonstration at Husker Harvest Days, we were almost overwhelmed with the response and attention to this product,” said Wesley Wach, NSB demand and utilization coordinator. “We are excited to partner with DustLock™ through this new program to bring dust control, increased road longevity and improved quality of life to people across the state of Nebraska.”

Formulated by Environmental Dust Control of the Midwest, DustLock™ works to not only keep dust down, but also eliminates mud and erosion of gravel. The product is a naturally occurring by-product of the soybean oil refining process and is chemical-free, 100% nontoxic and unharmful to humans, fish or wildlife. DustLock™ is also non-corrosive on equipment.

“Customers say the product has improved safety through better visibility and has caused roads to lose less gravel,” said Dan Feige of Environmental Dust Control of the Midwest. “It also has kept dust from blowing on facilities, crops, livestock, homes, and customers say they spend less on maintenance costs each year.”

DustLock™ penetrates into the bed of the material and 'bonds' to make a barrier that is naturally biodegradable. This means that DustLock™ stays where it is applied, ensuring that the surrounding ground and water are not contaminated. It works to keep the road in place and helps solve the problem of washboards, washouts and potholes. Only one application is needed and can last multiple years based on the amount of traffic, winter blading and frost conditions.

An application for the funds match can be found here. Submissions will be accepted until April 28, 2023.

To purchase the product for personal applications, contact (800) 797-0033. Individuals can also learn more online at dustlock.com.



Fischer Joins Colleagues to Introduce Bill Permanently Repealing the Death Tax

U.S. Senator Deb Fischer (R-Neb.) recently joined 40 of her colleagues in reintroducing legislation to permanently repeal the federal estate tax, more commonly known as the death tax. The Death Tax Repeal Act would end this purely punitive tax that has the potential to hurt family-run farms, ranches, and businesses as the result of the owner’s death. U.S. Senator John Thune (R-S.D.). introduced the legislation.

“It’s wrong to tax hardworking Americans twice – once when they earn their money, and again when they give it away. The death tax is unfair, and has a disproportionate impact on Nebraska’s small businesses and ag producers. Many Nebraskans have spent decades working to grow their businesses in the hope of passing them on to the next generation. I’m proud to join Senator Thune to introduce the Death Tax Repeal Act to finally end this misguided tax once and for all,” said Senator Fischer.

“No cattle producer should ever be forced to sell their family’s farm or ranch to pay a tax bill due to the death of a family member. Repealing the death tax is a commonsense way to keep the farm or ranch in the family. As a land-based, capital-intensive industry, most cattle producing families are asset-rich and cash-poor, with few options to pay off tax liabilities. It is unacceptable that some families are forced to sell off land, farm equipment, parts of the operation, or the entire ranch to pay the estate tax. We need a tax code that promotes the continuation of family-owned businesses instead of breaking them up,” said Todd Wilkinson, president of the National Cattlemen’s Beef Association.

Background:
Although the final version of the Tax Cuts of Jobs Act (TCJA) in 2017 did not repeal the death tax, the law effectively doubled the individual estate and gift tax exclusion to $10 million ($12.9 million in 2023 dollars) through 2025, which prevents more families and generationally-owned businesses from being affected by this tax. The increased exclusion expires at the end of 2025, which increases uncertainty and planning costs for family-owned businesses, farms, and ranches.

This legislation is supported by more than 150 members of the Family Business Coalition and 111 members of the Family Business Estate Tax Coalition, which includes the American Farm Bureau Federation, the National Cattlemen’s Beef Association, the National Federation of Independent Business, the Associated General Contractors of America, the Policy and Taxation Group, the National Association of Home Builders, and the National Association of Manufacturers.

In addition to Sens. Fischer and Thune, the legislation is cosponsored by U.S. Senators Mitch McConnell (R-Ky.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Mike Braun (R-Ind.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), John Cornyn (R-Texas), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Lindsay Graham (R-S.C.), Chuck Grassley (R-Iowa), Bill Hagerty (R-Tenn.), Josh Hawley (R-Mo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), John Kennedy (R-La.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Markwayne Mullin (R-Okla.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), Tim Scott (R-S.C.), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), and Roger Wicker (R-Miss.).



Iowa Swine Day 2023: Addressing Key Issues Facing U.S. Pork Producers

The 12th annual Iowa Swine Day is scheduled for June 29th and will be held at the Scheman Building, Iowa State Center in Ames, Iowa. The event will feature several highly regarded speakers who will address various issues related to U.S. pork producers.

The morning plenary session will cover topics such as learned excellence, understanding the carbon market, genetic improvements in a sustainable food system, and animal agriculture's potential to save the planet. The afternoon program will include four topic tracks with a total of 16 presentations to choose from.

A pre-conference BBQ and social time will also be held at the Hansen Agricultural Student Learning Center on the evening of June 28th, 2023. This event, hosted by AB Vista, TechMix, and Lynch Livestock, is open to all conference attendees and will focus on student networking. More details regarding the event will be announced soon.



EPA Fines Bobalee Inc. in Iowa for Alleged Hazardous Waste Violations

Bobalee Inc. in Laurens, Iowa, will pay $26,534 in civil penalties to resolve alleged violations of the federal Resource Conservation and Recovery Act.

According to the U.S. Environmental Protection Agency (EPA), the company, which manufactures welded hydraulic and pneumatic cylinders, generated hazardous waste at its facility and failed to notify EPA of its status as a hazardous waste generator and failed to properly handle the hazardous waste.

“It is a violation of federal law to generate hazardous waste and fail to notify EPA or obtain the necessary permits,” said David Cozad, director of EPA Region 7’s Enforcement and Compliance Assurance Division. “EPA’s enforcement actions demonstrate our commitment to protect human health and the environment from potential releases of chemical waste.”

According to EPA, Bobalee Inc. generates paint waste that is classified as toxic and ignitable as part of its manufacturing process.

Upon notification to Bobalee Inc. of the alleged violations, the company took immediate steps to return to compliance.



CHS Reports Second Quarter Earnings
Second Quarter Net Income of $292.3 Million in Fiscal Year 2023 Reflects Strong Energy Market Conditions

CHS Inc., the nation's leading agribusiness cooperative, today released results for its second quarter ended Feb. 28, 2023. The company reported quarterly net income of $292.3 million compared to $219.0 million in the second quarter of fiscal year 2022. For the first six months of fiscal year 2023, the company reported net income of $1.1 billion and revenues of $24.1 billion compared to net income of $671.0 million and revenues of $21.2 billion recorded in the first half of fiscal year 2022.

Fiscal 2023 second quarter highlights include:
    Revenues of $11.3 billion compared to $10.3 billion in the second quarter of fiscal year 2022, a year-over-year increase of 9%.
    Strong refining margins and market conditions in our refined fuels business drove significantly improved earnings in our Energy segment.
    Decreased prices for agronomy products and ethanol contributed to lower earnings in our Ag segment.
    Our CF Nitrogen investment delivered solid earnings due to strong global demand for urea and UAN, although selling prices for those products have decreased.

"Strong global demand for commodities and improved market conditions for refined fuels led to increased earnings for the quarter, as well as the first half of the fiscal year," said Jay Debertin, president and CEO of CHS Inc. "The strength of our diversified portfolio offset margin pressures experienced within our Ag segment, particularly wholesale and retail agronomy products. Looking ahead, we will continue to invest on behalf of our owners in infrastructure, supply chain capabilities and innovative technology throughout our expansive global network to maximize value for our member cooperatives, farmer-owners and customers."

Energy
Pretax earnings of $264.8 million for the second quarter of fiscal year 2023 represent a $254.0 million increase versus the prior year period and reflect:
    Higher refining margins resulting from increased global demand, favorable pricing on heavy Canadian crude oil and improved market conditions for refined fuels
    Higher propane margins driven by global markets and price volatility
    Higher prices for renewable energy credits that partially offset higher margins

Ag
Pretax losses of $81.6 million represent a $136.7 million decrease in earnings versus historically strong earnings in the prior year period and reflect:
    Lower margins due to market-driven price decreases across most Ag segment categories, including wholesale and retail agronomy products and renewable fuels
    A reduction in oilseed processing margins due to the timing of the impact of mark-to-market adjustments

Nitrogen Production
Pretax earnings of $81.7 million represent a $72.5 million decrease versus the prior year period due to lower equity income from CF Nitrogen attributed to a decrease in urea and UAN selling prices.

Corporate and Other
Pretax earnings of $48.0 million represent a $37.5 million increase versus the prior year period and reflect increased interest income resulting from higher interest rates, as well as improved equity income from our Ventura Foods joint venture, which experienced more favorable market conditions for edible oils.

CHS Inc. (www.chsinc.com) creates connections to empower agriculture. As a leading global agribusiness and the largest farmer-owned cooperative in the United States, CHS serves customers in 65 countries and employs nearly 10,000 people worldwide. We provide critical crop inputs, market access and risk management services that help farmers feed the world. Our diversified agronomy, grains, foods and energy businesses recorded revenues of $47.8 billion in fiscal year 2022. We advance sustainability through our commitment to being stewards of the environment, building economic viability and strengthening community and employee well-being.



All Retail Fertilizer Prices End March 2023 Lower

All average retail fertilizer prices were down from last month in the fourth full week of March 2023, according to sellers surveyed by DTN. However, after weeks of prices for several fertilizers being considerably lower, only one fertilizer -- anhydrous -- was substantially less expensive. Once again, all eight of the major fertilizer prices are lower compared to last month. DTN designates a significant move as anything 5% or more.

Leading the way lower was anhydrous. The nitrogen fertilizer was 5% lower compared to last month and had an average price of $1,026 per ton. The remaining seven fertilizers were all just slightly lower compared to last month. DAP had an average price of $818 per ton, MAP $810/ton, potash $644/ton, urea $626/ton, 10-34-0 $741/ton, UAN28 $428/ton and UAN32 $513/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.68/lb.N, anhydrous $0.63/lb.N, UAN28 $0.76/lb.N and UAN32 $0.80/lb.N.

All fertilizers are now double digits lower compared to one year ago. 10-34-0 is 17% less expensive, DAP is 21% lower, MAP is 23% less expensive, potash is 26% lower, UAN32 is 28% less expensive, both anhydrous and UAN28 are 33% lower and urea is 39% less expensive compared to a year prior.



Weekly Ethanol Production for 3/31/2023

According to EIA data analyzed by the Renewable Fuels Association for the week ending March 31, ethanol production was unchanged from the prior week at 1.003 million b/d, equivalent to 42.13 million gallons daily. The volume produced was equal to the same week last year but 7.0% above the five-year average for the week. The four-week average ethanol production rate edged down 0.2% to 1.004 million b/d, equivalent to an annualized rate of 15.39 billion gallons (bg).

Ethanol stocks fell 1.5% to 25.1 million barrels. Stocks were 3.0% lower than a year ago but 5.9% above the five-year average. Inventories declined across all regions except the Gulf Coast (PADD 3).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, rose 1.6% to 9.30 million b/d (142.49 bg annualized), the highest level since late December. Demand was 8.6% more than a year ago and 12.0% above the five-year average. Stocks of total motor gasoline fell an additional 0.7% to their lowest level for the week since 2014.

Refiner/blender net inputs of ethanol were steady at 888,000 b/d, equivalent to 13.61 bg annualized. Net inputs were 3.5% above the same week last year and 9.3% more than the five-year average.

There were zero imports of ethanol recorded for the seventeenth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of February 2023.)



Biofuel and Farm Leaders Press White House for Immediate Action on E15

Biofuel and farm leaders today called on President Biden to get ahead of rising fuel costs by authorizing sales of E15 this summer. In a letter to the White House, six stakeholder groups noted that current conditions are analogous to those in place last summer, when President Biden waived outdated Reid Vapor Pressure (RVP) restrictions on E15. The move saved drivers up to nearly a dollar per gallon at the pump in some areas, and an average of 23 cents per gallon according to the Minnesota Department of Commerce.  
 
“The ongoing conflict in Ukraine, now extending into its second year, continues to reverberate across global energy markets,” said the letter, whose signatories were Growth Energy, the Renewable Fuels Association (RFA), the National Corn Growers Association (NCGA), the National Sorghum Producers, the American Farm Bureau Federation, and the National Farmers Union. “At home, this conflict continues to cause fuel supply disruptions, high gasoline prices, and ongoing uncertainty for millions of Americans. To help remedy these disruptions, provide stability for American families, and support domestic energy and economic security, we urge the administration to authorize the summer sale of gasoline blended with up to 15 percent ethanol (E15).”

Advocates also outlined a range of “extreme and unusual” factors impacting the stability of U.S. fuel markets, including historically low domestic fuel inventories, record exports of U.S. fuel to allies overseas, and continued inflationary pressures on fuel consumers. Protecting summer access to E15 would help relieve pressure on U.S. fuel supplies, while reducing greenhouse gas emissions, lowering evaporative emissions, and supporting America’s farmers and rural economies, they argued.

“While a permanent solution that would allow E15 sales year-round remains an important necessity, we urge you to take action on a temporary, emergency RVP waiver as soon as possible to remedy current and expected supply challenges resulting from ongoing conflict in Ukraine,” concluded the letter.



February U.S. Exports of Ethanol and DDGS Remained Solid Despite Declines
Ann Lewis, Senior Analyst, Renewable Fuels Association

February U.S. ethanol exports pared back 12% to 104.0 million gallons (mg). Canada was our largest destination for the 23rd consecutive month, with 42.2 mg of U.S. ethanol crossing the border (primarily denatured), representing 41% of total U.S. exports despite an 11% decline from January. Other major customers were South Korea (10.3 mg, -29%), the United Kingdom (9.7 mg, -46%), Jamaica (6.3 mg, the largest volume in over five years), and the European Union (6.3 mg, -46%). Shipments increased to the Philippines (5.8 mg, up from zero), Nigeria (5.7 mg, also up from zero), Mexico (5.4 mg, +13%), and the United Arab Emirates (5.1 mg, up from minimal volumes). However, Brazil remained essentially absent from the market as it reimposed a 16% tariff on U.S. ethanol at the beginning of the month.

The U.S. did not log any meaningful imports of ethanol.

February U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, dipped 1% to 764,494 metric tons (mt) despite expanded sales among the largest U.S. markets. Mexico remained our top customer for the eighth consecutive month with an 11% increase to 170,970 mt (equivalent to 22% of February exports). Shipments increased to South Korea (118,976 mt, +7%), Thailand (55,054 mt, up six-fold to an 18-month high), and Vietnam (53,245 mt, +3%). Other large markets included Indonesia (48,147 mt), Ireland (47,499 mt), Canada (46,692 mt), and Turkey (40,873 mt).



NCBA Statement Correcting Internet Falsehoods About mRNA Vaccines in Cattle

Today, the National Cattlemen’s Beef Association (NCBA) released a statement in regard to false information circulating on social media about the use of mRNA vaccines in cattle:

"There are no current mRNA vaccines licensed for use in beef cattle in the United States. Cattle farmers and ranchers do vaccinate cattle to treat and prevent many diseases, but presently none of these vaccines include mRNA technology."




Farmers Seek Comprehensive Reform to Federal Milk Pricing

The American Farm Bureau Federation told USDA Secretary Tom Vilsack today that requests to increase make allowances – which are used in part to calculate how much a processor pays for milk – fall short of fairly supporting dairy farmers. According to 2021 USDA milk cost of production estimates, dairy farmers on average, lose $6.72 per hundredweight of milk produced. The loss for dairy farms with less than 50 cows was even greater at $21.58 per hundredweight.

Two dairy processor associations requested a federal milk marketing order hearing to increase make allowances. While AFBF is not opposed to updating make allowances, the proposals to USDA do not address the wider need for changes to milk pricing regulations. For example, the requests call for the continued use of voluntary data to set make allowances. In a letter to Secretary Vilsack, AFBF President Zippy Duvall argued for mandatory reporting. The letter states, “Large efficient processors may decline to participate [if data is voluntarily collected], which would skew the cost survey results upward. This would increase the deduction to cover processors’ cost in the milk price formula, which would skew dairy farmers’ milk checks downward. Farm Bureau believes it is critical that any changes in the make allowance be based on mandatory audited cost and yield surveying, which would provide farmers the assurance that any make allowance change reflects true costs borne by processors.”

To fully address farmers’ needs, USDA should consider a wider range of improvements to milk markets including adjustments to the Class I and II skim milk price formulas such as, updates to the Class I and II differentials, and a return of the Class I base price formula to the “higher-of” the Class III or IV formula.

“Dairy farmers continue to face market challenges as part of the high cost, high risk age we live in,” President Duvall wrote. “Trust is critical to maintaining an efficient and resilient federal order system that promotes orderly marketing of milk to consumers across the country. The petitions we oppose here threaten to undercut trust between farmers who produce the milk and the processors who turn it into the dairy products we all know and love.”



National Sorghum Producers Opens 2023 Sorghum Yield Contest

National Sorghum Producers will now begin accepting entries for the 2023 National Sorghum Yield Contest. State and national winners are selected from contestants split into east and west regions for each division, which includes irrigated, dryland no-till, dryland tillage and one overall winner for food grade.

The entry deadline for the 2023 National Sorghum Yield Contest is November 15. A complete field of 10 or more continuous acres, planted in the sorghum seed variety named on the entry form, will be designated as the contest field. The contestants must harvest and report at least 1.5 contiguous acres. Harvest reports will now be made available to contest entrants beginning May 1, and all completed forms must be received at the NSP office or postmarked no later than November 25.

“This competition motivates farmers and seed companies to explore innovative genetics and techniques for enhancing sorghum yields,” NSP CEO Tim Lust said. “Despite the 2022 drought, we saw excellent top-end yields in the contest from growers nationwide. We look forward to expanding on that success in 2023, and we anticipate a high level of participation in the upcoming contest, resulting in new yield records being set.”

The goal of the National Sorghum Yield Contest is to increase grower yields, transfer knowledge between growers to enhance management and identify sorghum producers who excel in each state and throughout the country. In order to enroll, contestants must be a paid NSP member at the time of entry. More than one member of a family may enroll, but each member must have a separate membership. All entries will be reviewed and divisions will be placed off of yield only. National and state winners will be recognized at the 2024 Commodity Classic in Houston, Texas.

To find the entry form, 2023 yield contest rules and more information, interested contestants can visit www.sorghumgrowers.com/yield-contest/ or contact NSP Director of Operations Julie Barclay at 806-749-3478.