Thursday June 1 Ag News

Soybean Gall Midge Emergence in Nebraska
Justin McMechan, NE Extension Crop Protection and Cropping Systems Specialist

On May 31st, soybean gall midge adult emergence was observed in east-central Nebraska near Mead. No adult emergence has been detected at any of the other sites in the alert network. A planting date study at the Eastern Nebraska Research, Extension, and Education Center near Mead, NE shows that soybean planted from April 23rd to May 3rd are at the V2 stage when fissures occur. Later planting dates (May 13th) are still at the V1 stage. Only soybean with fissures present are susceptible to soybean gall midge infestation.

We advise growers to wait for continued emergence of soybean gall midge adults before taking any action. No research is available on the impact of hot and dry weather on adult emergence, but it is possible that there may be some early emergers. Management of soybean gall midge has been difficult. Foliar sprays have shown some response but are inconsistent between locations and years. No specific foliar-applied product tested to date has provided consistent control of SGM. Research to date suggests that growers can consider using a combination product that contains a pyrethroid. If an application is being considered, it should only be made in soybean fields where a history of issues with soybean gall midge injury has occurred. Since soybean gall midge is a field edge-infesting pest, growers may only need to treat the first 60 to 120 feet of a field edge that is directly adjacent to a field that was injured the previous year. Do not treat any soybean fields prior to V2, as they are not susceptible to infestation due to the lack of fissures or cracks at the base of the stem.

Hilling or covering the base of soybean stems with soil has also been found to be a very effective strategy with almost complete control of soybean gall midge. This is a difficult practice to implement when soybean plants are small, as they can easily be completely covered by soil. Studies are being conducted to evaluate the timing of hilling relative to the plant development stage. More information on hilling is available through the soybeangallmidge.org website. Little is known about the impact this management strategy could have on soybean gall midge movement in a field. Although no field studies have been conducted, it is possible that adults may continue to move into the field until they find a susceptible plant.

With no detection of soybean gall midge in other parts of the network, it would be advisable to wait for emergence to occur in those areas. You can continue to follow adult emergence at all locations through soybeangallmidge.org.

Soybean Gall Midge: Should I Spray Checklist
❏    Soybean gall midge adults have emerged in my area
❏    My soybean field is at the V2 stage or greater
❏    I observed soybean gall midge injury in the adjacent field last year



Nebraska E15 Access Standard Act Signed Into Law

Governor Jim Pillen signed LB 562 today in a ceremony with the Nebraska Corn Growers Association (NeCGA), Renewable Fuels Nebraska, senators and members of supportive associations and companies were present. LB 562, with sections known as the E15 Access Standard Act, was introduced to expand consumer access to E15, a 15% ethanol blend.

Nebraska produces over 2 billion gallons of ethanol annually, which provides a high octane, low carbon solution for the environment. At the same time, ethanol helps consumers save at the pump when they choose blends such as E15.

Utilizing over 600 million bushels of corn annually, Nebraska's ethanol industry provides a great value-added partner for the state’s corn growers. LB 562, when fully implemented, will continue to expand the availability of higher blends of ethanol at retail locations across Nebraska. The Nebraska Department of Revenue will also offer increased incentives for retailers that offer E15 and higher blends of ethanol.

"LB 562 is a win for consumers, the environment and Nebraska's corn farmers," said Chris Grams, farmer from Upland and NeCGA president. "NeCGA wants to thank Governor Pillen for his support of LB 562 and Senator Dorn for his introduction of this progressive legislation."

LB 562 also contained key updates to Nebraska's Beginning Farmer program, commonly known as NextGen. The updated statutes include an increase in maximum net worth, adjusting how to figure an applicant's net worth and increasing the credits available within the program.

"It's fitting that LB 562 contains support for both Nebraska's ethanol industry and beginning farmers," added Grams. "Nebraska's ethanol industry growth, and the demand it created for corn, provided the opportunity for the next generation of farmers to return to operations across Nebraska."



E15 Access Standard Act Signed Into Law by Nebraska Gov. Jim Pillen
 
Lawmakers have passed a bill to increase consumer access to E15 in Nebraska. LB562, introduced by State Sen. Myron Dorn, includes requirements for motor fuel retailers in Nebraska to sell E15 from at least 50% of their dispensers starting in 2024 if they build a new motor fuel site or replace more than 80% of the motor fuel storage and dispensing infrastructure at an existing site. Gov. Jim Pillen signed the bill, known as the E15 Access Standard Act, into law today.
 
“Nine out of 10 fuel retailers in Nebraska will be able to offer E15 without expensive upgrades to their fuel infrastructure and dispensing system,” said Reid Wagner, Nebraska Ethanol Board (NEB) executive director. “The framework created through LB562 offers a pathway to increase access to higher blends while minimizing costs to fuel retailers and maximizing savings for consumers.”
 
If the statewide ethanol blend rate (the average percentage of ethanol in each gallon of fuel) is below 14% in 2027, the bill requires fuel retailers to offer E15 from at least one dispenser at each retail location. The bill also provides for an increased income tax credit for fuel retailers offering higher blends of ethanol: $0.08 per gallon of E15 sold in 2024, $0.09 per gallon in 2025, $0.08 per gallon in 2026, $0.07 per gallon in 2027, and $0.05 per gallon in 2028.
 
“This is a great day for Nebraska’s drivers,” NEB Chairman Jan tenBensel said. “Having the option to choose lower‑cost, lower-carbon E15 at fuel stations all around the state is a big win for consumers, farmers, and value-added agriculture.”
 
E15, a blend of 15% ethanol and gasoline, is approved by the U.S. Environmental Protection Agency (EPA) for vehicles model year 2001 and newer. Visit fueledbynebraska.com to learn about which blend of ethanol to use and to find retailers near you.



NCGA Welcomes Interns in St. Louis and D.C. Thanks to Nebraska Corn

The National Corn Growers Association (NCGA) welcomed interns to both offices thanks to the support by the Nebraska Corn Board (NCB) and the Nebraska Corn Growers Association (NeCGA). These internships provide students with an overview of the corn industry through real-world professional experiences while developing the next generation of talent to move the industry forward.

Hannah Roebke is majoring in broadcasting, journalism and sports media and communication at the University of Nebraska-Lincoln (UNL). She will be interning with NCGA in St. Louis, focusing on communications and outreach.

Roebke says “I am excited for the opportunity to work in an industry that is close to my heart. I look forward to learning more about ag while getting to communicate the message of NCGA.”

Alexis Bodlak of Pender, who is majoring in nutrition-community health and wellness, policy analysis and pre-law at UNL will be spending her summer in Washington, D.C. working on policy with NCGA.

“Growing up as a third-generation farmer on a corn and soybean operation in Northeast Nebraska has shown me that it takes extreme dedication and perseverance to be a successful producer. I am excited to be interning for the National Corn Growers Association because they are just as dedicated and relentless in creating and advancing opportunities for corn growers all over the United States. This summer I am looking forward to assisting with the logistics of the annual Corn Congress, staying up to date on Farm Bill developments, and connecting with producers from various backgrounds,” Bodlak said.

“Nebraska Corn has a reputation of excellence on the national stage, brought on by the students who participate and thrive in these internships,” said Kelly Brunkhorst, executive director of the Nebraska Corn Board and Nebraska Corn Growers Association. “Each year we are surprised by the strong candidates we are able to interact with, and this year was no exception. We look forward to hearing about their successful experiences.”

Not only will students gain real-world experiences from these internship experiences but will also acquire valuable insight on possible future careers.

Interns will document their learning experiences through written updates and social media posts. To keep up with these students and their experiences, visit nebraskacorn.gov or follow the Nebraska Corn Board on Facebook, Twitter, Instagram and YouTube.



Yoder, longtime IANR associate vice chancellor, announces retirement

After nearly 20 years of leadership at the University of Nebraska-Lincoln, Ron Yoder has announced he will retire this fall.

Yoder, who currently serves at the senior associate vice chancellor for UNL’s Institute of Agriculture and Natural Resources, joined UNL in 2004 as the department head for the Department of Biological Systems Engineering. In 2011, he became the associate vice chancellor for IANR. He also served as interim NU vice president and IANR vice chancellor in 2016, after then-IANR vice chancellor Ronnie Green was named the UNL chancellor.  

An engineer by training, Yoder likened his leadership style to strategic use of an oil can. “I’ve tried to oil the parts that need oiling so the whole machine runs smoothly,” he said.

His vision and behind-the-scenes work have helped shape IANR, said Mike Boehm, NU vice president and Harlan Vice Chancellor for IANR. Yoder has been instrumental in the formation of the Daugherty Water for Food Global Institute and the Clayton Yeutter Institute of International Trade and Finance, among other IANR interdisciplinary initiatives. He has worked with IANR deans, department heads, unit leaders and center directors to ensure that new hires are made strategically and strengthen the teaching, research and extension missions of IANR.

He has also worked to improve facilities across IANR, including major renovations to the Nebraska East Union and the Dinsdale Family Learning Common on UNL’s East Campus.

“Ron has been a steady, forward-thinking, and incredibly productive leader during his nearly two decades with the University of Nebraska-Lincoln,” said Boehm. “Over and over, he has shown an incredible ability to anticipate future needs of IANR, UNL and Nebraska, and to pull together teams to address those needs. Our university and state will benefit from Ron’s leadership well into the future, and I’m grateful to have worked alongside him the past seven years.”

Prior to joining UNL, Yoder worked at the University of Wyoming, the U.S. Department of Agriculture in Colorado and Washington state, and the University of Tennessee. He holds degrees from Drexel University, Clemson University and Colorado State University.

He will formally retire in early September 2023. Due to UNL’s efforts to address a budget shortfall, his position will not be filled.



'HIGH-TECH FARM HAND’: HUSKER RESEARCH TEAM BUILDS AUTONOMOUS PLANTER

On a calm April morning, Flex-Ro ambled through a corn plot at about 2 miles per hour. While researchers stood by to help clear obstacles from its path, the robot moved and planted on its own.

Seeding the five-acre no-till field on Rogers Memorial Farm marked a significant milestone for the University of Nebraska–Lincoln research project, which aims to use agricultural robots for autonomous planting.  

Supported by a $452,783 grant from the U.S. Department of Agriculture’s National Institute of Food and Agriculture, Flex-Ro resides at the forefront of unmanned ground vehicle planter research, said Santosh Pitla, associate professor of advanced machinery systems. With the labor challenges farmers face, he sees robots and autonomy as a critical tool to help maintain agricultural productivity.

“In those lines, I look at this robotic equipment as high-tech farm hands,” he said.

Some agricultural companies are already working to produce and perfect autonomous tractor technology. John Deere and Monarch unveiled autonomous tractors at a 2022 technology conference, and Sabanto has an autonomy system that can be installed in tractors.

Pitla considers Flex-Ro unique from these efforts. In addition to planting seeds autonomously in untilled soil, it can perform other field operations with minimal changes to its hardware and software.

The robot, which first entered fields in 2019 to measure crop traits, can be controlled remotely and operated autonomously. Flex-Ro has been designed to be modular and reconfigurable, with different modes of steering ability available on the fly.

The 3,800-pound machine sits on an adjustable high-clearance platform and is powered by a gas engine. Each wheel contains an electric and hydraulic motor that can be steered in four different modes.

Pitla has managed the project since the robot’s inception in 2015 and continues to work with students to build new capabilities.

Bringing the planter to fields
In the 2022-23 school year, the autonomous planter team included agricultural engineering graduate student Ian Tempelmeyer and agricultural systems technology undergraduates Landon Sokol, Seth Chandler and Zane Rikli.

Tempelmeyer, who has worked on the project since fall 2021, picked up on the progress of previous graduate students and decided to take on the challenge of automated seeding. He spent about six months analyzing the mechanics, finally deciding on a design that would provide enough force to penetrate no-till soil.

“We made a quick realization that a drawn implement in a traditional manner wasn’t going to work. You needed a certain downforce,” he said. “We came up with the idea to put it inside the wheelbase; that’s something I hadn’t seen.”

Once the engineers settled on a design, Tempelmeyer assembled a “build book,” a 30-page document laying out in detail all the parts and how they would fit together. They started assembling in December, then worked on wiring and control systems. He relied heavily on the student workers — especially given their farming backgrounds.

“I’d drop schematics, and they’d start putting it together,” Tempelmeyer said. “We’d work hand in hand, but a lot of times it was them guiding me.”

Making sure the equipment would run safely and smoothly required a lot of trial and error. Eventually, the students refined the code and calibrated the machine enough for more sophisticated controls, such as adjusting the speed and handling terrain changes.

At the field trial in April, it took some minor adjustments to generate enough downforce, but they reached their goal of planting the whole plot with Flex-Ro.

After setting a GPS, the robot can navigate autonomously to plant, and it will stop if it meets an obstacle. It works under the mode of “supervised autonomy,” meaning it still needs an operator to monitor it when planting and requires supervision when moving from one field to another.

Tempelmeyer said it was “awe-inspiring” to be part of a project spanning multiple students’ academic careers. Flex-Ro gained some attention after winning the 2022 Engineering Pitch Competition, hosted by the College of Engineering and NUtech Ventures.

“It’s inspirational for sure, seeing a bunch of students over the past six years with nothing but the tires and building its way up,” he said. “It keeps getting bigger and bigger.”

The planter project is representative of the collaborative work between the agricultural engineering and agricultural systems technology programs offered by the Department of Biological Systems Engineering, Pitla said. Students from both majors at the graduate and undergraduate level played a critical role in the robot’s design, development and testing.

This endeavor exists alongside other Pitla Lab projects on unmanned aerial vehicles and smaller Flex-Ro machines, with plans to combine them using controller area network technology. Commonly used in cars, the technology provides a way for computers to communicate.

In the coming months, Pitla’s team will test UAV and UGV collaboration algorithms, whereby UAVs will follow Flex-Ro to dock and transfer materials such as seeds. Their goal is to autonomously plant the full 300 acres of Rogers Memorial Farm within the next five years by using Flex-Ro robots and drones for planting, refilling the planters, spraying and applying fertilizer.



Farm Credit Services of America and CoBank Donate $50,000 to Support Nebraska Beef Cattle Producers

Farm Credit Services of America (FCSA) and CoBank recently donated $50,000 to the Nebraska Cattlemen Disaster Relief Fund to support beef cattle producers as they recover from the recent fires.

“FCSAmerica exists to serve agriculture. This mission is especially critical as we work to support Nebraska cattle operators impacted by spring wildfires,” said Mark Jensen, president and CEO of FCSAmerica. “Our donation to the Nebraska Cattlemen Disaster Relief Fund is aimed at helping impacted producers recover as quickly as possible so they can move their operations forward.”

“It is CoBank’s mission to serve and support rural America, including its agricultural producers. Cattlemen and ranchers are stewards of the land, working tirelessly to care for livestock to provide a safe and healthy product,” said Marcus Wilhelm, Central Region President. “Our hearts go out to those affected by the wildfires, and we hope our donation to the Nebraska Cattlemen Disaster Relief fund will aid in a quicker recovery – allowing producers to get back to their operations and livelihoods.”

Officers of the Nebraska Cattlemen Disaster Relief Fund stated, “Our strongly held values of community and compassion are what unites us as Nebraskans. The generosity of CoBank and Farm Credit Services of America is appreciated by Nebraska’s cattle producers as we work to recover from recent wildfires. From purchasing supplies to fix fences to replacing lost feed, their donation will have a great impact on cattle producers, and we are thankful for their willingness to step up during challenging times.”  

Background
The Nebraska Cattlemen Disaster Relief Fund will remain activated and accept donations until further notice by leadership of the Disaster Relief Fund.

The Nebraska Cattlemen Disaster Relief Fund is a tax-exempt 501(c)(3) charitable organization and donations made to the Disaster Relief Fund may be tax deductible – a receipt will be sent upon deposit of funds. Those donating should consult with their tax advisor for final determination.

Funds will only be distributed to producers who experienced property loss or damage in areas where a fire was reported through the Nebraska Emergency Management Association (NEMA) Watch Center. As of today, disaster declarations have been issued for Jefferson (Rock Creek Fire), Cherry (McCann Fire), Garfield (Lowry Fire), and Custer and Blaine counties (Cooksley Complex Fire). Membership in Nebraska Cattlemen is not required for applicants to receive relief. Applications may be submitted from today until further notice. Relief funds will not be distributed until the application period closes.

Individuals who would like to donate either online or by mailing a check, please visit www.nebraskacattlemen.org/disaster-relief-fund.

For any questions, please contact the Nebraska Cattlemen office at (402) 475-2333 or email disasterrelief@necattlemen.org



Smith, Fischbach Lead Call for Formal Dispute Consultations under USMCA

Today, Rep. Adrian Smith (R-NE), chairman of the Ways and Means Trade Subcommittee, and Rep. Michelle Fischbach (R-MN) led 62 of their colleagues in a letter to United States Trade Representative (USTR) Katherine Tai.

In the letter, the members call on Ambassador Tai to fully utilize the tools USTR has under USMCA to hold Mexico accountable to its commitments by proceeding with a formal USMCA dispute to address Mexico’s discriminatory policies banning U.S. biotech corn.

The letter  states:

Dear Ambassador Tai:
 
We appreciate your continued work to hold our trading partners to the commitments in the United States-Mexico-Canada Agreement (USMCA). In particular, we commend the Office of the United States Trade Representative (USTR) for taking the first step to address Mexico’s discriminatory policy banning U.S. biotech corn by requesting technical consultations under USMCA. However, now that the thirty-day period for consultations have lapsed without Mexico making any changes, we urge USTR to take swift enforcement action by initiating a USMCA dispute.
 
We agree with the assessment you made during your testimony to Congress that “Mexico’s policies threaten to cause serious economic harm to U.S. farmers and stifle innovation that can promote global food security.” At the time, you were seeking technical consultations with Mexico on their policy of restricting U.S. biotech imports into their country. You further explained that “if [your] concerns are not resolved through technical consultations, [you] will consider all options to fix this problem, including by taking additional steps under the USMCA.” Two months have passed since these statements, and we strongly believe that – absent immediate meaningful action by Mexico to shift its policy – the time to take those additional steps is now.
 
Absent such action, U.S. agriculture’s $30 billion export market is at risk. Mexico represents a critical market for U.S. corn, our country’s top crop by production value. Loss of market access would result in substantial losses for producers and rural economies across the country. In addition, allowing Mexico to continue with this policy would cede the importance of agricultural innovation and technological advancement. Perhaps most importantly, lack of action would create a dangerous precedent that promises made under USMCA, and other trade agreements by extension, can be ignored without consequence. Mexico’s failure to adhere to its agricultural commitments under USMCA must be addressed with the same vigor that USTR has approached other aspects of the agreement, including labor. USMCA must be enforced in its entirety.
 
Given Mexico’s lack of meaningful action to correct this issue, it is time to fully utilize the tools you have under USMCA to hold Mexico accountable to its commitments. We urge you to immediately proceed with a formal USMCA dispute to stand up for the livelihoods of American farmers.
 
The letter was signed by Ways and Means Committee Chairman Jason Smith and Reps. Alford, Allen, Armstrong, Arrington, Bacon, Baird, Banks, Bost, Buck, Bucshon, Carey, Cline, Comer, Crawford, Davidson, De La Cruz, Ellzey, Emmer, Estes, Ezell, Feenstra, Finstad, Fitzpatrick, Flood, Fry, Sam Graves, Grothman, Guest, Guthrie, Hern, Hinson, Houchin, Jackson, Dusty Johnson, Mike Kelly, Trent Kelly, Kustoff, LaHood, Letlow, Luetkemeyer, Mann, McCaul, Mary Miller, Max Miller, Miller-Meeks, Murphy, Newhouse, Nunn, Pence, Rose, Austin Scott, Smucker, Stauber, Strong, G.T. Thompson, Timmons, Van Duyne, Wagner, Waltz, Wenstrup, and Yakym.



The Changing Cost of Cattle Transportation
Elliott Dennis, Extension Livestock Economist, University of Nebraska - Lincoln

There has been lots of commentary among consumers about gas prices as we unofficially head into summer. Nationally, regular gasoline prices had begun slowly to come off of their all-time highs of $5.01 per gal. high in June 2022 to a new low of $3.09 per gal. in January 2023. Prices have risen steadily over the last several months to $3.57 per gal. as of last week. Higher gasoline prices tend to reduce travel as total costs for vacations and trips increase. Ultra Low Sulfur diesel has also come down from its high of $5.78 per gal. in June 2022. But different from regular gasoline, it has continued to decline to $3.85 per gal. nationally. This puts diesel prices at similar nominal price levels as in 2012-2015.

           Diesel is one of the primary inputs in the transportation of goods throughout the United States. Livestock hauling is no exception. Feeder cattle are generally transported long distances in the fall as they move from summer grazing to placement in backgrounding operations or directly into feedlots. Cattle, and other livestock in general, can handle transportation stress fairly well – to a point. Trucking feeder cattle long distances can impact animal health outcomes and improper handling by animal handlers can lead to bruised or injured cattle. These negative impacts can generally be offset by appropriate stocking densities, proper trailer ventilation, correct animal handling techniques during loading and unloading, and truck and trailer sanitation. The Beef Quality Assurance Transportation (BQA-T) certificate is one way the industry is taking steps to address the potential negative effects of trucking. Most states have an extension specialist who can provide this training and certification.

Fed Cattle Implied Trucking Premiums and Discounts
As much as we know about the potential animal impacts due to transportation, little is publicly or widely known about the pricing mechanisms of trucking. This is assumed to vary by the type of livestock, length of the trip, the load fill, length of the trailer, and the season/weather condition. Publicly available bid pricing for livestock hauling has recently ranged from $2.00 to $4.50 per loaded mile but these can vary significantly. While data on transportation costs is generally lacking, an implied cost of transportation can be derived from Mandatory Price Information for fed cattle.

Regardless of marketing method, cattle can be sold live or dressed and transportation can be either FOB or delivered. FOB indicates the processing plant pays for transportation and assumes the animal risk once loaded at the feedlot. Delivered indicates the feedlot is required to deliver the cattle to the plant and takes on the transportation risk. Some plants have preferences on how cattle are transported while others allow for producers to choose. The implied trucking cost can then be calculated as Trucking Premium/Discount = Delivered – FOB. Positive numbers indicate that packing plants are willing to pay a premium ($/cwt.) to have cattle delivered. Negative numbers indicate that packing plants want to set up the trucking. I use data on steers, live and dressed, from the 5-area average, Nebraska, and the Iowa/Minnesota region. I compare how the premiums have changed over time, the seasonality, and the trucking premiums/discounts by region. This data is reported weekly but I aggregate up to monthly data for ease of presentation. The weekly data shows much more variation whereas the monthly data allows us to focus more on the broad trends over time, within a year, and across regions.
 
Premiums to Deliver Cattle to Meat Processing Plants
Are there premiums to deliver fed cattle to processing plants? It depends. Figure 1 shows the trend in Live and Dressed trucking premiums and discounts from November 2002 to May 2023. Producers can expect to receive premiums/discounts depending on whether cattle are sold live or dressed. However, on average, since 2010 premiums have been more often positive than negative. There has also been a slight increase in the trend from 2018-2023 for cattle that are sold live. As shown in Figure 1, in the past year there has been a large divergence in the implied hauling rates for live and dressed – live has become more positive, and dressed has become more negative.
 
Seasonality of Transportation
Do trucking premiums/discounts vary seasonally? Yes. Figure 2 shows the average implied trucking premiums/discounts for fed cattle from 2010-2020 and the yearly premiums/discounts for 2021, 2022, and 2023. Premiums tend to be the highest in the summer peaking in July and lowest in winter months generally reaching their low in November/December.

Regional Differences
Do implied fed cattle hauling rates change by region? Yes. Table 1 shows the yearly premiums/discounts by region. Only two regions (NE and IA/Minn.) consistently report prices for both FOB and delivered cattle that are sold live or dressed. On average, prices are generally higher in Iowa/Minn. than in Nebraska. The relative magnitude of these differences varies from year to year.
 
Strength and Representativeness of Implied Trucking Premiums/Discounts
The strength and representativeness of these implied rates vary by the number of cattle reported in each separate price series and the number of regions contributing to each price series. Each week, the number of cattle sold, across all quality grades, is reported along with the weighted average price. Using these head counts by region and the 5-area average indicates which region is most represented in the index. There has historically been a large amount of volume and regional representativeness in the Live-FOB and Dressed-Delivered prices. For example, the relative share of Iowa/Minn. plus Nebraska has risen to approximately 60% for Live-FOB but it varies considerably from week to week. However, on Live-Delivered and Dressed-FOB Iowa/Minn. and Nebraska consist of about 90% of all transactions, on average. Thus these implied trucking prices may be more representative of trucking prices ($/cwt.) in the Northern Plains than in other cattle-feeding regions.
 
Implications
These implied trucking premiums/discounts are not monetarily insignificant. Given rising cattle and carcass weights in the last fifteen years, the relative value for trucking is much larger. A $5 per cwt. premium to deliver on a 1500 lb. steer would imply worth of $75 per head for trucking costs. A pot belly trailer can hold approximately 50,000 lbs. or 33 head of cattle (50,000 / 1500). Thus, the hauling of fed cattle would be worth $2,475 (75 x 33). While not evident in the data, feedlots closer to processing plants have lower transportation costs, and thus bids for cattle (FOB vs. delivered) likely affect the total price received for cattle.

Several issues have the current and future potential to impact the livestock hauling industry in the next several years. First, there has been a general move towards haulers wanting to be home at night and thus fewer willing to do long hauls. This changes the cost and thus economically viable range cattle can be transported. Second, there are relatively fewer individuals who want to haul livestock or other commodities anymore. This is seen by the fact that Walmart is willing to offer $100,000 plus bonuses and training to join their hauling team. Of course, there are other factors affecting the salary but that is quite a sustainable wage. Where else can one get that wage relative to one's education and experience? Third, and likely the largest, electronic log devices (ELD) and the restriction on the length of time truckers can be on the road could limit the distance of hauling livestock. Thus far, agriculture has received exemptions conditional on the distance and frequency of these hauls. However, Canada and Texas have experienced increased regulation on animal hauling potentially increasing the cost of transporting livestock. These, among other factors, are likely to impact the ease and cost of transporting livestock.



AFAN Midyear Update

This year the Alliance for the Future of Agriculture in Nebraska is going to hold Mid-Year update meetings in North Platte, Grand Island, and Norfolk. Event details are as follows:

North Platte
June 27
Occasions (125 E N Lake Rd)
11:00 a.m.-12:30
Serving Lunch

Grand Island
June27
Kinkaiders Brewing Company (316 N Pine)
3:30-5:00 p.m.
Happy Hour & Hors d'oeuvres

Norfolk
June 29
The Event Room (1102 Riverside Blvd)
3:30-5:00 p.m.
Happy Hour & Hors d'oeuvres

RSVP info due June 20. For more info call (402) 421-4472, or email mindyr@a-fan.org.



Register Now for Feeding Quality Forum

Consumer demand signals spur progress in the cattle business, but producers must be proactive when making changes in their marketing strategy.

Join cattle feeders, cow-calf producers and industry professionals for the latest trends, hot topics and key solutions at the 18th annual Feeding Quality Forum (FQF), hosted by Certified Angus Beef (CAB). The event will be at the Graduate Lincoln hotel in Lincoln, NE, on Aug. 22 and 23, 2023.

"Feeding Quality Forum presents experts on relevant topics for progressive cattlemen from the ranch to the feedyard," says Bruce Cobb, CAB executive vice president of production. "If your goal is to raise the best fed cattle in the market, then this event brings together solution-oriented producers and industry professionals to do so."

Speakers will bring forward practical solutions and beef demand insights for all attendees to apply when they get home to their operation.

Register at FeedingQualityForum.com. Early registration is $125 for those who sign up before June 30. From July 1 to August 4, registration costs $250. Student registration is $50.

What to Expect
This year will offer a morning tour for attendees to see how premium beef drives value through the entire supply chain. The pre-event session will visit Sysco Lincoln, a CAB-licensed distributor, to see the ins and outs of serving the foodservice sector of the supply chain. It has limited capacity for 45 attendees and costs $50 in addition to registration.
The main agenda begins at 1:00 p.m. and presenters will focus on the market, stewardship and beef grading. Tuesday’s speakers include:
    Dan Basse, AgResource Company, sharing a global market update.
    A panel featuring Hugh Aljoe, Noble Research Institute; Jesse Fulton, University of Nebraska Panhandle Research and Extension; and John Schroeder, Darr Feedlot, discussing stewardship practices.
    A panel discussion with T.J. and Tifini Olson, Round the Bend Steakhouse, and Lane Rosenberry, Sysco Lincoln, on how they leverage premium beef brands to create loyal customers.

The evening program will recognize the 2023 Industry Achievement Award recipient, Steve Hunt. Hunt’s vision and leadership at U.S. Premium Beef built a sustainable business model for cattlemen to target for greater financial rewards, benefitting the entire beef supply chain from rancher to consumer. He joins the ranks of such industry legends as Randy Blach, Paul Engler, Topper Thorpe, Lee Borck, Larry Corah, John Matsushima and Bob Smith, who have also been recognized for their contributions to the feeding industry.

Wednesday offers a half day of additional education starting with insights from the packer for the upcoming supply challenges. Other topics will highlight cattle health at the feedyard, demand drivers and tools to enhance quality.
    Glen Dolezal, Cargill Protein, will share the packer perspective for the current cattle market environment.
    Lily Edwards-Callaway, Ph.D., Colorado State University, and A.J. Tarpoff, Ph.D., Kansas State University, will go over survey results on heat stress in the feedyard.
    Nevil Speer, Turkey Track Consulting, will share trends and predictions for capturing more value for calves
    A panel of Performance Livestock Analytics customers moderated by Justin Sexten, Ph.D., Precision Animal Health group at Zoetis.

"We’re embracing the hard conversations to bring solutions to producers to help them navigate a business that’s always changing," Cobb says. "We do that by bringing together a network of market-focused individuals, who hopefully continue the conversations when they get home."

Find the full agenda and speaker bios at FeedingQualityForum.com.



I-29 Moo University Presents  progressive milk pricing reform insights and other federal policy updates webinar On June 22

The I-29 Moo University 2023 Dairy Webinar Series continues Thursday, June 22 from 12 noon to 1 p.m. CDT with a focus on milk pricing reform insights and other federal policy updates. The program will be presented by Lucas Sjostrom and Karen Gefvert from Edge Dairy Farmer Cooperative.

“Listeners will gain a better understanding of what is going on in the national milk pricing discussion,” said Fred Hall, dairy specialist with ISU Extension and Outreach.  In discussing national milk pricing reform, these Edge Dairy Farmer Cooperative presenters will focus on strengthening the relationship between farmers and processors in a way that increases transparency, fairness and competition, and gives farmers a reasonable amount of price certainty. The cooperative’s emphasis is on two principles ― flexibility and fairness. They will take a deeper dive into these priorities, provide a status update from The Hill and share farm bill and federal policy issues specific to dairy.

Lucas Sjostrom serves as managing director of Edge Dairy Farmer Cooperative and Minnesota Milk Producers Association. Sjostrom has worked in dairy policy and communications for the past 10 years.

Karen Gefvert is the Director of Public Affairs for Edge Dairy Farmer Cooperative. She brings with her more than 12 years of experience in the federal agriculture policy space, including an emphasis on dairy policy. This will be her third farm bill.

There is no fee to participate in the webinar; however, preregistration is required at least one hour before the webinar. Preregister online at: https://go.iastate.edu/GXKBSQ.  

For more information, contact: in Iowa, Fred M. Hall, 712-737-4230; in Minnesota, Jim Salfer, 320-203-6093; or in South Dakota, Patricia Villamediana, 605-688-4116.



Naig, Ten other Commissioners of Agriculture Raise Concerns with EPA About RFS Volumes

Iowa Secretary of Agriculture Mike Naig and ten other elected Commissioners of Agriculture from around the country recently raised concerns with the Environmental Protection Agency (EPA) about the biomass-based diesel volumes in the proposed Renewable Fuel Standard (RFS) rulemaking for 2023 through 2025.

The coalition, led by Secretary Naig, also includes the elected commissioners from Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, North Dakota, South Carolina, Texas, and West Virginia. They highlighted their concerns in a joint letter to EPA Administrator Michael Regan.

“Since its inception, the RFS has uplifted the agriculture economy and rural communities across the U.S. and has stimulated critical growth in biofuel markets, diversifying our available supply of critical liquid transportation fuels that drive our nation’s economic success,” wrote the coalition of elected agriculture officials. “However, EPA’s proposed rule fails to consider the key investments that our farmers and biofuel producers have made in recent years and ignores the historic level of biofuel and feedstock processing capacity expansion that is planned and underway, thereby restricting the opportunity for clean, homegrown biofuels to meet our nation’s energy independence and carbon reduction goals.”

A summary of concerns raised by the coalition of elected officials included the following:
    While the U.S. is expecting to see more than five billion gallons of renewable diesel come online by 2025, EPA’s proposed biomass-based diesel (BBD) volumes are significantly lower than current production and usage levels of biodiesel and renewable diesel. If this rule is finalized, it will hurt future advancements in feedstock and biofuel production as well as reduce supply in the diesel market.
    While conventional biofuel levels in the proposed rule appear to be sufficient in and of themselves, there is great concern over the potential cannibalization that could occur in this category due to the woefully inadequate BBD levels. Higher ethanol blends such as E15 and E85 provide consumer savings at the pump and emission reductions for the air, and the RFS should be harnessed to accelerate – not hinder – the use and availability of these homegrown, lower carbon fuel choices.

    In its final rule, EPA is strongly encouraged to increase the proposed volumes for BBD – along with corresponding increases to the total advanced biofuel and total renewable fuel obligation levels – to account for the significant growth in investments and production capacity in the renewable diesel and biodiesel space. Without considering the increases in newly available feedstocks, crush capacity and biofuel production, the EPA will be hurting investments and impacting supply of critical fuels in the diesel market. Biofuels offer the most immediate and affordable path to both reducing greenhouse gas emissions and enhancing U.S. energy security.

The EPA and Biden Administration are expected to finalize and announce the RFS volumes later this year.



Prevented Planting Request for Information and Stakeholder Listening Sessions

    RMA is gathering feedback on possible changes to prevented planting crop insurance coverage through a request for information (published May 23, 2023) as well as virtual and in-person listening sessions. These feedback opportunities will enable RMA to provide better crop insurance options.

Request for Information
    The request for information on prevented planting requests input on prevented planting topics to include:
        Harvest Price Option – Feedback on whether to allow the prevented planting payment calculations to be based on the higher of projected price or harvest price under the revenue protection plan of insurance.
        “1 in 4” Rule – Input on the challenges or experiences since the rule (to be eligible for a prevented planting coverage acreage must have been planted to a crop, insured, and harvested in at least 1 out of the previous 4 crop years) was implemented nationwide.
        10 percent additional coverage option – Input on if RMA should reinstate the option to buy-up prevented planting coverage by 10 percent.
        Contract price – Whether prevented planting costs are higher for contracted crops and how prevented planting payments should be calculated for contract crops.
        General – Willingness to pay additional premium for expanded prevented planting benefits, recommendations on other prevented planting limitations, etc.

    Comments are due September 1, 2023, and they should be submitted through regulations.gov. The request for information, which includes details for submitting feedback, is available in this Federal Register notice https://www.federalregister.gov/documents/2023/05/23/2023-10926/request-for-information-and-stakeholder-listening-sessions-on-prevented-planting.

Listening Sessions
    Attend a virtual listening session on:
    Thursday, June 8, 2023
    1:00p – 3:00PM CDT
        Meeting URL: Click here to join the meeting - https://gcc02.safelinks.protection.outlook.com/ap/t-59584e83/?url=https%3A%2F%2Fteams.microsoft.com%2Fl%2Fmeetup-join%2F19%253ameeting_YmQ4ZGEwOTktOTkwYS00YjYxLTlkM2YtNjgyZGRkYTI5NzE4%2540thread.v2%2F0%3Fcontext%3D%257b%2522Tid%2522%253a%2522ed5b36e7-01ee-4ebc-867e-e03cfa0d4697%2522%252c%2522Oid%2522%253a%25226305f677-965b-495a-b61e-2befe19b3dd6%2522%257d&data=05%7C01%7C%7Cc03dd1e8f03e4bde9cfc08db5b9d1e19%7Ced5b36e701ee4ebc867ee03cfa0d4697%7C0%7C0%7C638204502594416769%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=6KxMlFUnUILSr3CRmGI7VMNAQvja95HfSQUlGxy%2Fef8%3D&reserved=0
    Meeting ID: 217 891 067 621
    Passcode: 43YLNt
    For audio only (call in): 314-530-5560
    Passcode: 746 772 69#

    Attend an in-person listening session at the locations listed in the table below; no RSVP required. All times listed are local. Participants are encouraged to bring their comments in writing to the listening session.
    Wednesday, August 9, 2023
    10:00 AM – 12:00 PM CDT
    Northwest Research Farm
    6320 500th Street
    Sutherland, Iowa 51058



Tech Hub LIVE 2023: The Ultimate Event for Ag Tech Innovators and Practitioners

TechHub LIVE is back with its third annual event, the premier conference and expo for tech-enabled, data-driven agriculture. Join hundreds of ag retailers, distributors, consultants, manufacturers, and other industry stakeholders in Des Moines, Iowa, from July 24-26 for an unparalleled learning and networking experience.

Powered by CropLife Media Group™, the nation’s leading voice for the ag retail industry, Tech Hub LIVE offers:
    An exhibit hall featuring the latest products and services from leading companies in the ag tech space
    A conference program covering topics such as digital strategies, autonomous equipment, farm data management, scouting and imagery tools, and more
    New elements such as Fireside Tech Chats, Roundtable Discussion Groups, and TechTalks to enhance your knowledge and connections
    A 1990s-themed welcome party sponsored by the Greater Des Moines Partnership on July 24 at Ricochet
    The inaugural meeting for Women in Ag Tech on July 24 from 2:00 to 5:00 PM

Don’t miss this opportunity to discover how to leverage technology to grow your business and serve your grower customers better. Register today at TechHubLIVE.com and receive Early Bird rates using Promo Code "agnewscenter" until June 30th. Share this #agnewscenter discount code with others on social media. Include #TechHubLIVE23 to be entered in an online drawing at the event for 10 special prizes.



Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.61 million tons (187 million bushels) in April 2023, compared with 5.94 million tons (198 million bushels) in March 2023 and 5.43 million tons (181 million bushels) in April 2022. Crude oil produced was 2.24 billion pounds down 4 percent from March 2023 but up 4 percent from April 2022. Soybean once refined oil production at 1.68 billion pounds during April 2023 decreased 8 percent from March 2023 and decreased 1 percent from April 2022.

Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 468 million bushels in April 2023. Total corn consumption was down 4 percent from March 2023 and down 1 percent from April 2022. April 2023 usage included 91.5 percent for alcohol and 8.5 percent for other purposes. Corn consumed for beverage alcohol totaled 6.36 million bushels, up 11 percent from March 2023 and up 60 percent from April 2022. Corn for fuel alcohol, at 416 million bushels, was down 5 percent from March 2023 and down less than 1 percent from April 2022. Corn consumed in April 2023 for dry milling fuel production andwet milling fuel production was 92.0 percent and 8.0 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.62 million tons during April 2023, down 5 percent from March 2023 and down 5 percent from April 2022. Distillers wet grains (DWG) 65 percent or more moisture was 1.30 million tons in April 2023, up slightly from March 2023 but down 2 percent from April 2022.

Wet mill corn gluten feed production was 269,495 tons during April 2023, down 8 percent from March 2023 but up 3 percent from April 2022. Wet corn gluten feed 40 to 60 percent moisture was 194,485 tons in April 2023, up 4 percent from March 2023 but down 12 percent from April 2022.



Weekly Ethanol Production for 5/26/2023

According to EIA data analyzed by the Renewable Fuels Association for the week ending May 26, ethanol production climbed 2.1% to a six-week high of 1.004 million b/d, equivalent to 42.17 million gallons daily. The volume produced was 6.3% less than the same week last year but 1.3% above the five-year average for the week. The four-week average ethanol production rate increased 0.7% to 985,000 b/d, equivalent to an annualized rate of 15.10 billion gallons (bg).

Ethanol stocks rose 1.3% to 22.3 million barrels. Stocks were 2.7% less than a year ago yet 2.0% above the five-year average. Inventories built across all regions except the East Coast (PADD 1) and Gulf Coast (PADD 3).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, slipped 3.6% to 9.10 million b/d (139.47 bg annualized). Yet, demand was 1.3% more than a year ago and 3.2% above the five-year average.

Refiner/blender net inputs of ethanol ticked 0.3% lower to 926,000 b/d, equivalent to 14.20 bg annualized. Net inputs were 0.3% more than the same week last year and 5.4% above the five-year average.

For the first time, EIA reported ethanol exports, which were estimated at 54,000 b/d (15.9 million gallons for the week). There were zero imports of ethanol recorded for the 25th consecutive week.



NMPF Opposes Shortsighted Infant Formula Legislation

NMPF strongly opposes legislation introduced today by Senators Mike Lee, R-UT, and Bob Menendez, D-NJ, and Representatives Adrian Smith, R-NE, and Don Beyer, D-VA, that would increase U.S. vulnerability to infant formula supply disruptions by increasing U.S. reliance on imported formula and formula inputs. The legislation would unilaterally and permanently remove tariffs and tariff rate quotas on infant formula and infant formula base powder, resulting in job loss and foreign dependence.

“This bill would make American families more reliant on foreign companies for their infant formula supply and puts in place new one-way-street trade conditions that would harm dairy farmers, cooperatives and processors,” said Jim Mulhern, president and CEO of NMPF. “Instead of weakening our domestic infant formula sector and putting American jobs at risk, we ask that Congress work with us to reinforce and expand our domestic production capacity.

“We strongly support two-way dairy trade,” Mulhern said. "That’s why we advocated for passage of existing U.S. free trade agreements and why we’ve been vocal proponents of resuming trade negotiations to expand dairy trade opportunities; but we vehemently object to putting unilateral import expansion on the backs of American dairy farmers.”

This bill is a misguided response to the dire shortages of infant formula that occurred last year after a temporary production crisis at a large U.S. formula manufacturing plant. In response to that short-term, unique emergency, NMPF supported the 2022 Formula Act and did not oppose passage of the subsequent 2022 Bulk Infant Formula to Retail Shelves Act, which increased import access at a time of acute need. Both laws rightfully expired at the end of 2022, once U.S. production had recovered to pre-crisis levels.

FDA noted in May 2023 testimony to the House Oversight Committee that formula stocking levels are now higher than those seen prior to last year’s temporary crisis, making the legislation introduced today all the more nonsensical.

“American dairy farmers and dairy cooperatives are committed to ensuring a robust, dependable supply of infant formula for American families,” said Randy Mooney, NMPF chairman and a dairy farmer near Rogersville, MO. “The United States can absolutely more than meet domestic demand, and should in fact be positioning itself as a net-exporter of infant formula. The U.S. dairy industry is a proven leader in providing milk powder, whey, lactose and cheese to consumers all around the world – infant formula should be no different.”

Mulhern said that “the idea that the best way for the United States to secure a dependable supply of infant formula is through foreign companies and an unreliable global supply chain is simply wrong. Congress should focus its efforts instead on better supporting the American companies, workers, and farmers who supply nearly all of this country’s formula and formula ingredient needs. Those steps should include reforms to WIC program procurement; ensuring new domestic formula firms have the support needed to gain market authorization; and negotiating new trade agreements to expand export opportunities for American-made formula and other dairy products.”



NMPF Eager for Next Steps in Milk Marketing Modernization with USDA “Action Plan”

The National Milk Producers Federation applauds USDA for today proposing its “Action Plan” to move toward a national hearing based on NMPF’s proposal to modernize the Federal Milk Marketing Orders. The largest representative of U.S. dairy farmers and farmer-owned dairy processors is eager to begin the next phase of creating a federal order system that better reflects today’s market conditions and dairy producer needs.

“We’re gratified that USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full, because the whole of our plan adds up to more than the sum of its individual parts,” said NMPF President and CEO Jim Mulhern. “We will bring the same level of dedication and preparation to this part of the process that we did in drafting our own plan, which included more than 150 meetings and wide consultation across dairy producers and the entire industry.”

NMPF’s Federal Milk Marketing Order proposal, detailed here, offers comprehensive solutions that recognize the needs of today’s dynamic industry. While the complexity of the process will require detailed discussions, the unity seen among dairy producers supporting NMPF’s proposal, which the organization’s Board of Directors approved unanimously, puts adoption on a positive path moving forward, since producers vote for Federal Orders Mulhern said.

Randy Mooney, NMPF chairman and dairy farmer near Rogersville, MO, called the proposal’s strong momentum a testament to the power of dairy farmers, through their cooperatives, to undertake bold initiatives that advance their industry. Farmers will continue to lead as modernization moves forward, Mooney said.

“Dairy producers have proven throughout this process that, with unity and careful attention to each other’s needs, we can achieve impressive things,” he said. “Dairy’s strength comes from its farms, and producers ready to face challenges and seize opportunities. We’re excited to begin the formal hearing process.”



National Dairy FARM Program Opens Nominations for Annual FARM Excellence Awards

The National Dairy Farmers Assuring Responsible Management (FARM) Program Excellence Awards are back for the third year. The prestigious awards recognize farms and evaluators who demonstrate excellence in their engagement with the FARM Program.

Awards are presented in four categories: Animal Care & Antibiotic Stewardship, Environmental Stewardship, Workforce Development and FARM Evaluator.

“We are so proud of the farms that participate in our program areas and our dedicated evaluators, and we believe it is important to publicly recognize the people that make the FARM Program so successful,” Emily Yeiser Stepp, executive director of the FARM Program, said. “These awards are given to dairies and evaluators who exemplify on-farm social responsibility principles every day and each year I am blown away by the outpouring of support for the nominees from their peers.”

Farms or FARM evaluators can be nominated by fellow dairy farmers, members of their communities, extension, cooperative or processor staff, veterinarians, themselves or others. Nominations are open until 11:59 p.m. PDT Aug. 1 and should be submitted using the online form on the FARM website.

Nominated farms must have a current FARM Program evaluation in the respective category area and must be in good standing with the program. Evaluators who are nominated must be FARM Program certified in any of the program areas as of June 1, 2023. The awards are judged by a committee of FARM Farmer Advisory Council members and other subject matter experts.

Winners in each category will receive a hotel room and travel for two individuals to attend the Dairy Joint Annual Meeting Nov. 13-15 in Orlando, Florida, where the winners will be celebrated during a luncheon. Visit the FARM Excellence Awards page for more details https://nationaldairyfarm.com/excellence-awards/.



USDA Announces June 2023 Lending Rates for Agricultural Producers

The U.S. Department of Agriculture (USDA) announced loan interest rates for June 2023, which are effective June 1, 2023. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.  

Operating, Ownership and Emergency Loans
FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine.  For many loan options, FSA sets aside funding for underserved producers, including veterans, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers.

Interest rates for Operating and Ownership loans for June 2023 are as follows:  
    Farm Operating Loans (Direct): 4.500%
    Farm Ownership Loans (Direct): 4.750%  
    Farm Ownership Loans (Direct, Joint Financing): 2.750%
    Farm Ownership Loans (Down Payment): 1.500%
    Emergency Loan (Amount of Actual Loss): 3.750%  

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.   

To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.  

Commodity and Storage Facility Loans
Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.  

    Commodity Loans (less than one year disbursed): 5.750%

Farm Storage Facility Loans:  
        Three-year loan terms: 3.750%
        Five-year loan terms: 3.500%
        Seven-year loan terms: 3.500%
        Ten-year loan terms: 3.500%
        Twelve-year loan terms: 3.625%

    Sugar Storage Facility Loans (15 years): 3.750%

Simplified Direct Loan Application
FSA developed a new, simplified direct loan application for producers seeking a direct farm loan. The new application, reduced from 29 to 13 pages, provides improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers now also have the option to complete an electronic fillable form or a traditional paper application for submission to their local FSA service center.

Disaster Support
FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the past year’s winter storms, drought, hurricanes and other natural disasters, that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.

Inflation Reduction Act Assistance for Distressed Producers
On Aug. 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. It is a historic, once-in-a-generation investment and opportunity for the agricultural communities that USDA serves. Section 22006 of the IRA provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. In October 2022, USDA provided approximately $800 million in initial IRA assistance to more than 11,000 delinquent direct and guaranteed borrowers and approximately 2,100 borrowers who had their farms liquidated and still had remaining debt. On May 1, 2023, FSA announced that nearly $130 million in additional, automatic financial assistance had been obligated for qualifying farm loan program borrowers facing financial risk. This assistance included: 

    Assistance to direct loan borrowers who were past due on a qualifying direct loan as of Sept. 30, 2022, but by fewer than 60 days, and remained delinquent on that loan as of March 27, 2023.
    Assistance to borrowers who restructured a qualifying direct loan after Feb. 28, 2020, through primary loan servicing available through FSA.
    Assistance to borrowers whose interest owed on their qualifying direct loan debt exceeded the principal owed (on a loan-by-loan basis). 

In May 2023, FSA began accepting and reviewing individual requests for assistance if they took certain extraordinary measures to avoid delinquency on their direct FSA loans, such as taking on or refinancing more debt, selling property, or cashing out retirement or college savings accounts. On May 19, USDA mailed a letter to all FSA direct loan borrowers detailing eligibility and how to request extraordinary measures assistance.

Also in May, FSA started accepting and reviewing individual distressed borrower assistance requests from direct loan borrowers who missed a recent installment or are unable to make their next scheduled installment. All FSA borrowers should have received a letter detailing the process for seeking this type of assistance even before they become delinquent. As the letter details, borrowers who are within two months of their next installment may seek a cashflow analysis from FSA using a recent balance sheet and operating plan to determine their eligibility.   

For more information producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.  

More Information
To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other fam records data and customer information by logging in their farmers.gov account. If you don’t have an account, sign up today.



U.S. Wheat Associates Hires Luke Muller as Assistant Director in West Coast Office

U.S. Wheat Associates (USW) has hired Luke Muller as Assistant Director of its West Coast Office in Portland, Ore. Muller, who began his new role on May 30, comes to USW with a broad set of skills and experience in agricultural research and economics.

Raised on his family’s wheat, cotton, sorghum, canola, soybean and alfalfa farm in southwestern Oklahoma, Muller has a bachelor’s degree in Plant and Soil Sciences and Agribusiness from Oklahoma State University (OSU). He earned a master’s degree in Agriculture, Food and Resource Economics at Michigan State University (MSU).

Muller worked as a Research Assistant in MSU’s Department of Agriculture, Food, and Resource Economics, where his duties included investigating fungal and insect effect on crops in the Midwest. He also served as a consultant for the Food and Agriculture Organization of the United Nations in Rome, Italy. His work and study abroad offered an opportunity to see firsthand how other countries develop sustainable food chains through technology, research, and policy.

"Luke's expertise in agricultural economics, coupled with his understanding of wheat farming and his excellent communication skills, will undoubtedly strengthen our efforts to support and promote the U.S. wheat in the overseas market," said Steve Wirsching, Vice President and Director of USW’s West Coast Office.

Muller has been active on the local, state and international levels, serving in leadership roles focused on food security and sustainability.

“I really look forward to helping U.S. Wheat Associates in a variety of ways, and I think my educational background in agriculture and experience in research and farming will help me excel in the role,” said Muller. “My knowledge of agriculture has been shaped by different countries and through peer-reviewed research. But I also have a personal connection to farming.”

U.S. Wheat Associates’ (USW) mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 15 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. For more information, visit www.uswheat.org.



Growth Energy Applauds U.S. House Letter to USTR on Brazil’s Ethanol Tariff Barriers

This week, 21 members of the U.S. House of Representatives, led by Rep. Darin LaHood (R-Ill.), sent a letter to U.S. Trade Representative Katherine Tai urging her to protect U.S. farmers and biofuel producers and prioritize U.S. ethanol export competitiveness in the Brazilian market by addressing current unfair trade practices.  

“We believe the double layer issue of a tariff imbalance and an impenetrable RenovaBio is unjustified and puts American ethanol and farmers at risk,” wrote the coalition. “We strongly urge you to prioritize American ethanol export competitiveness in the Brazilian market by addressing these unfair policies. Further, if Brazil continues with its unfair treatment of American ethanol, we stand ready to work with you to consider measure that protect U.S. farmers and biofuels producers and counter these unfair trade practices.”

Growth Energy CEO Emily Skor thanked the bipartisan group of members for calling attention to the current trade imbalance ethanol producers face in Brazil.

“We’re grateful to Rep. LaHood and all cosigners of the letter to Ambassador Tai for raising the concerning dual challenges that American ethanol producers face in Brazil while Brazilian ethanol exports receive duty-free treatment here in the U.S. Growth in the international export market is essential to the strength of American ethanol and our nation’s ag economy. We look forward to working with these Members and Ambassador Tai to ensure a level trade playing field.”

Background
On February 1, 2023, the Brazilian Foreign Trade Chamber (Camex) reinstated an import tariff on American ethanol shipped to Brazil. The new tariff rate on ethanol is 16 percent this year and 18 percent in 2024. Before this announcement, American exports of ethanol to Brazil had received duty-free treatment since March 2022.

Additionally, there are non-tariff barriers that further complicate our bilateral ethanol trade with Brazil. Brazilian ethanol producers have access to our Renewable Fuels Standard and California’s Low Carbon Fuel Standard program, which recognize the inherent value of low-carbon biofuels. This treatment is not reciprocated by Brazil, where U.S. ethanol producers, after two years, have yet to be approved for Brazil’s biofuel program, RenovaBio.

Brazilian ethanol exports receive duty-free treatment in the U.S. market.