Wednesday May 31 Ag News

Innovative Use for Soybean Oil Highlighted in Soy Tire Giveaway

The Nebraska Soybean Board (NSB) is proud to promote the Ready to Roll Soy Tire Giveaway, a promotion aimed at showcasing the numerous benefits of manufacturing with soybean oil instead of petroleum. As part of this campaign, NSB and other partners will be giving away one set of Goodyear Assurance WeatherReady® tires, which incorporate soybean oil in their tire formulation. The winner will be chosen on Monday, June 26, 2023.

The soy-based tire giveaway campaign, now in its fourth year, highlights the remarkable benefits of incorporating soybean oil into tire manufacturing. The use of soybean oil provides the driver with increased performance from their tires by improving the flexibility of the tire in lower temperatures as well as enhancing traction in both rain and snow.

Further, consumers aren’t the only ones benefiting from this technology. Using soybean oil in the production of Goodyear tires supports farmers and ultimately, our environment. Goodyear scientists and engineers work intentionally to formulate new polymer and compound technologies that are partially derived from natural, sustainable materials. Soybean oil is a renewable resource, and this new industrial use opens yet an additional market for the increasingly versatile soybean. Learn more about soybean oil in Goodyear tires here.

“Goodyear has a long-term goal to fully replace petroleum-derived oils in its products by 2040,” said Andy Chvatal, NSB executive director. “This commitment is driving additional demand for Nebraska soybeans and the Ready to Roll Soy Tire Giveaway is one way we can promote the versatility of soy.”

Soybean-derived products have become an integral part of our daily lives. As the applications for soy-based products continue to expand, it becomes increasingly crucial to raise consumer awareness about their benefits.

For more information about the Ready to Roll Soy Tire giveaway and to enter, visit ruralradio.com/ktic/ready-to-roll.



Pillen Signs Historic Tax Cuts Package

Today, Governor Jim Pillen signed LB243 and LB754 into law. Governor Pillen was joined at the event by state senators, business and ag groups.

LB243 does the following:
    Increases the amount of relief granted under the Property Tax Credit Act
    Establishes a 3 percent annual cap on how much school districts can increase property tax requests, with some exceptions
    Eliminates the 5 percent cap on the school district tax credit’s allowable growth percentage under the Nebraska Property Tax Incentive Act
    Curtails levying authority and provides state aid to community colleges

LB754 does the following:
    Reduces the top individual and business income tax rates to 3.99% by tax year 2027
    Delivers full tax exemption for Social Security benefits a year early in 2024
    Provides tax credits related to child care, for families and providers

Both bills contain emergency clauses, and with the Governor’s signature, are effective immediately.

"These two bills, LB243 and LB754, bring transformational tax reform for Nebraskans and provide billions in property, business, and income tax relief for Nebraska businesses, farmers, ranchers, and taxpayers," said Governor Pillen. "For far too long, Nebraska has been a high tax state. From the river to Harrison, Nebraska taxpayers have had to deal with skyrocketing property taxes and unfair income and business taxes. Today's tax package puts Nebraska back on track to become competitive nationally."

Sen. Tom Briese, who introduced LB243, and Sen. Lou Ann Linehan, who introduced LB754, spoke about how the whole tax package delivers real tax reform for Nebraska taxpayers.

"This really is a historic day for Nebraska taxpayers," said Sen. Tom Briese. "Contained in these bills are some real gamechangers. The bottom line is they are going to put more dollars into everyday Nebraskans' pockets."

"Every time we have a big tax cut package, everybody wins – whether you are paying income, business, or property taxes," said Sen. Lou Ann Linehan.

Sen. Eliot Bostar spoke about the Child Tax Credit he helped introduce and its importance for Nebraska kids.

"We are creating a comprehensive approach to ensure the opportunities are there for all of our children," said Sen. Eliot Bostar. "Our top priority is fighting for our kids and not giving up on a single kid."



Nebraska Cattlemen Commend Governor Jim Pillen on Property Tax Relief Legislation

Today, following the signing of LB243 by Governor Jim Pillen, Steve Hanson, President of Nebraska Cattlemen released the following statement:

“Nebraska Cattlemen is proud to have played a key role in securing additional property tax relief for hardworking Nebraskans. Removing the property tax levy authority for community colleges is a direct result of the work of the Nebraska Cattlemen Taxation working group. This legislation builds upon existing relief and will continue to provide relief for all Nebraskans. He continued, “Nebraska Cattlemen is grateful for the collaboration of the Revenue Committee and other coalition members to build this package that touches all Nebraskans. We commend Governor Pillen for his unwavering support of tax relief and reform.”

Background
The Nebraska Property Tax Incentive Act (LB1107) was passed by the One Hundred and Sixth Nebraska Legislature in 2020 to provide an additional funding mechanism for property tax relief.

During the One Hundred and Seventh legislative interim, Nebraska Cattlemen leaders worked with Senators to identify efforts to expand property tax relief and identified property taxes paid to community colleges as a key area of focus.

LB873 was brought forth during the second half of the One Hundred and Seventh Legislature to amend LB1107 by increasing income tax credits available for property taxes paid to local schools at $548 million and boosting the total to $561 million for 2023. Additionally, LB873 adjusted LB1107 by including an additional $201 million in relief for property taxes paid to community colleges. These adjustments equate to tax savings for property taxes paid to community colleges on top of the refundable income tax credits for property taxes paid to K-12 schools.

LB 243 was introduced in 2023 to increase existing property tax relief. LB243 modifies LB1107 by eliminating the allowable growth cap of 5% and allowing the fund to grow at the maximum amount of credits allowed in the prior year increased by the allowable growth percentage. This legislation adds $275 million of additional funds to the Property Tax Credit Fund and adds an allowable growth rate in FY 2030. Finally, this legislation adds a 3% spending cap on Nebraska's K-12 school districts.



Statement by Mark McHargue, President, regarding Governor Pillen Signing his Historic Tax Package

“Today is a great day for every tax paying Nebraskan with Governor Jim Pillen signing two bills into law that will deliver historic property and income tax relief. Nebraska Farm Bureau has been fighting for property tax relief for rural Nebraskans for decades and this legislation helps deliver equitable tax distribution to every farmer and rancher. Getting LB 243 and LB 754 across the finish line is a huge victory for the entire state, especially coupled with reform to how education is funded.”

“We thank state senators for getting these bills passed and putting billions of dollars back in the pockets of Nebraska taxpayers. We thank Governor Jim Pillen for his visionary and aggressive approach in tackling the state’s most pressing issue. Seeing the size and scope of relief delivered today shows a massive amount of will of the elected officials and the voters of this state.”

“To say that electing the first Governor rooted in agriculture in nearly a century was key to this success is an understatement. Nebraska’s lifeblood is agriculture, and we are seeing the state’s largest industry supported with this legislation.”



LATE SPRING ALFALFA WEEVIL UPDATE
– Samantha Daniel, NE Extension

As we approach the first cutting for alfalfa across the state of Nebraska, it is important to continue to monitor your fields for alfalfa weevil.

Plant injury from alfalfa weevil feeding damage appears as pinholes in the terminal leaves, with leaves becoming skeletonized as feeding severity increases. Adult beetles are roughly 5mm in length with a blunt snout and a brown body with a darker brown stripe running down the center of the back. Larvae are 1.5mm to 8.5mm long with a black head, wrinkled green body, and white stripe running lengthwise along the top. They will curl into a C-shape when disturbed.

Scouting for Alfalfa Weevil up to and even during the first cutting can help to mitigate economic losses. First, use a sweep net to determine whether larvae are present. If larvae are present, randomly select 5 sites across the field and collect 10 stems at each site, cutting the stems at ground level. Beat the stems into a deep sided bucket, count the number of larvae to determine the average number per stem. While you are actively cutting your alfalfa field, take some time to inspect your equipment for larvae. Economic thresholds for Alfalfa Weevil can vary greatly from an average of 1-7 larvae per stem, depending on a variety of factors. Threshold tables can be found on the CropWatch website.

A variety of insecticides are labeled for alfalfa weevil control, including pyrethroids and products containing indoxacarb (such as Steward). Pyrethroids are more harmful to natural enemies of alfalfa weevil, while indoxacarb is more selective and may help to maintain beneficial insect populations. When alfalfa reaches 50% or more bud stage, it may be more profitable to cut the alfalfa early rather than treat it.

 

FIRST CUTTING ALFALFA
– Todd Whitney, NE Extension

Since our 2023 accumulated growing degree days have pegged 650 GDD’s, now is the time to harvest your first cutting alfalfa. Moving forward, if the first cutting is delayed after one-tenth bloom or later; then, potential alfalfa regrowth will be removed with the first cutting; thus, delaying the next hay crop. This cutting timing strategy provides a compromise between maximizing forage production versus retaining nutritional quality which declines as alfalfa stems mature.

In fields, where irrigation has not been an option, lack of soil moisture will likely result in disappointing first cutting forage yields. In addition to drought, insect damage may have caused premature leaf loss; thus, requiring early cutting before alfalfa crown regrowth or one-tenth bloom to salvage what remains.

For other parts of the state, recent rainfall and warm weather may have stimulated rapid alfalfa growth; this means those needing dairy quality forage may need to cut hay soon. First cutting alfalfa hay quality declines quicker compared to the second, third, or fourth cuttings.

For those wanting to maximize quantity and replenish hay reserves, delaying harvest just a little longer until almost full bloom will likely result in higher yields. Alfalfa will be more efficient using available soil moisture if cutting is delayed until bloom but likely reduce total season cuttings. If your operation needs more roughage tonnage, delaying cutting for higher yield and lower quality is better. However, if higher protein content is needed, then earlier cutting will produce a higher quality hay. Remember, though, that continually cutting alfalfa at the early pre-bud stage will weaken plants and potentially increase weedy conditions.



National Stockmanship and Stewardship Events Coming to Nebraska

Nebraska cattle producers have the opportunity to attend one of two, full-day Stockmanship & Stewardship events this June. Both events will offer the opportunity for individuals whose primary language is Spanish to participate in sessions as well.

“We are excited to be able to offer many of the sessions presented at these two events in both English and Spanish” said Jesse Fulton, Livestock Systems Educator & Director of Nebraska Beef Quality Assurance. “We know it is important for those whose primary language is Spanish that work on cattle operations daily to have industry relevant education available to them as well.”  

Stockmanship and Stewardship is offered through a partnership between the National Cattlemen’s Beef Association, the Beef Checkoff, Beef Quality Assurance (BQA), and Merck Animal Health. The two Nebraska locations are in Norfolk on Tuesday, June 13, at the Lifelong Learning Center and Ag Complex and McCook on Thursday, June 15, at the Red Willow Fairgrounds.

Additionally, registered producers can also attend a grazing workshop on June 14th in Norfolk at the Lifelong Learning Center where speakers will cover grazing management to promote soil health, settling cattle on pasture, and virtual fencing.

During the 13th and 15th events, attendees will enjoy a Certified Angus Beef ® strip steak lunch courtesy of Cargill Animal Protein and Certified Angus Beef. During lunch, Certified Angus Beef (CAB) will share how they are using BQA certifications to share every cattleman’s commitment to raising healthy, nutritious, and high-quality beef with consumers and the brand’s licensed partners. BQA is a national program that offers educational programming on proper management techniques, with a commitment to quality through every segment of the beef industry.

“Certified Angus Beef cares about animal welfare because its partners care about animal welfare,” says Bruce Cobb, CAB executive vice president of production. “We know producers do a great job caring for their livestock and BQA is a great way to verify that commitment with consumers.”  

During the event, attendees will watch live low-stress cattle handling demonstrations and witness effective cattle handling on foot and horseback. Other sessions include a market outlook, grazing management, and cattle nutrition and herd health. Additionally, attendees will hear from CAB and their stakeholders about consumer concerns on sustainability, why it matters at the ranch and how BQA can help ease the conversation. Plus, attendees will have the opportunity to become BQA certified, or renew an expired certification at the end of the day!

“Producers have a great story to tell about the attention and care they put towards their beef animals as they bring them from pasture to plate, but sometimes they need help telling that story”, said Fulton “By becoming BQA certified or keeping up with their certification, producers can utilize the BQA program to help them tell their story to the everyday beef consumer. By attending one of the Nebraska Stockmanship and Stewardship events, producers can participate in a robust industry related education event and become BQA certified/recertified all at the same time!”

You can find out more, see a full agenda, and register for the event online at stockmanshipandstewardship.org/events/nebraska-2023. Pre-registration is required to ensure adequate food and space is arranged!



NDA Hay and Forage Hotline is Open

The Nebraska Department of Agriculture has opened a "Hay and Forage Hotline" to connect buyers with sellers of hay, pasture and other types of forage. This Hotline service is available to all buyers and sellers for free. The Department is providing this information as it has been given to them. You can also see the list and additional resources at their website https://nda.nebraska.gov/promotion/hay/index.html.  Listing of individual names does not, in any way, constitute an endorsement of anyone or their respective product. The Hotline is merely designed to be a clearinghouse of information for producers in need.

Sellers of available hay and forage can click the link above to list their hay on the "Sellers List," which is updated regularly. The Nebraska Department of Agriculture will then make the "Sellers List" available to buyers by this website. Once buyers obtain this information, they will be responsible for contacting the sellers directly to negotiate any transactions.

In order to help ensure that the sellers list contains accurate, up-to-date information, sellers are encouraged call 402-471-4876 if they no longer have hay or forage available or if they would like to update their posting. However, postings older than one year will automatically be removed. Once a posting has been removed, sellers can re-enter their posting with any updated information. For questions, contact the Nebraska Department of Agriculture at 402-471-4876.



AMS Announces June 2023 Dates for Cattle Industry Listening Sessions on the Cattle Contracts Library Pilot Program

The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) today announced the June 2023 dates for listening sessions to gather stakeholder feedback on the Cattle Contracts Library Pilot Program (Pilot). On April 27, 2023, AMS announced that it would hold these new sessions at locations in key cattle producing states to provide an opportunity for interested stakeholders to attend either in-person or virtually.

The first of these sessions was held on Thursday, May 18, 2023, at the USDA Cattle & Carcass Training Center located at West Texas A&M University, in Canyon, TX. A recording of this session is available on the AMS website.

Below are details about the upcoming June 2023 listening sessions.

At each session, AMS will provide an overview of the current Pilot, then participants will be given an opportunity to share their feedback. Attendees may participate in-person (seating will be limited) or virtually. For virtual attendees, the meeting will be broadcasted live as a webinar. To join from a PC, Mac, iPad, iPhone or Android device, please join via Zoom. Please register in advance using the unique link provided for each session. Attendees will be permitted to submit Q&A via the Zoom meeting.

In addition, AMS will accept written comments about the Cattle Contracts Library Pilot through September 30, 2023. Written feedback can be submitted to Wash.LPGMN@usda.gov. All written feedback and a recording of each listening session will be posted on the AMS website.

Wednesday, June 14, 2023, 1 p.m. CT, at the Iowa State University Wallace Foundation Learning and Outreach Center located at 53020 Hitchcock Avenue, Lewis, IA 51544.

Attendees at this Iowa session may participate in-person (seating limited to 50) or virtually. For virtual attendees, the meeting will be broadcasted live as a webinar. Please register in advance at https://www.zoomgov.com/webinar/register/WN_gc4iU3_QQDyBZkSxQG-5cg.  After registering, you will receive a confirmation email with additional instructions. The event will start promptly at 1 p.m. CT. Attendees will be permitted to submit Q&A via the Zoom meeting. The event will be recorded and the recording will be posted on the AMS website.

Friday, June 16, 2023, 1 p.m. CT, at the USDA Cattle & Carcass Training Center located on the campus of University of Nebraska-Lincoln, Loeffel Meat Science Laboratory, Lincoln, NE 68583.

Attendees at this Nebraska session may participate in-person (seating limited to 100) or virtually. For virtual attendees, the meeting will be broadcasted live as a webinar. Please register in advance at https://www.zoomgov.com/webinar/register/WN_ES-XutWkSo-jzovwf4LgRA. After registering, you will receive a confirmation email with additional instructions. The event will start promptly at 1 p.m. CT. Attendees will be permitted to submit Q&A via the Zoom meeting. The event will be recorded and the recording will be posted on the AMS website.

Friday, June 23, 2023, 8:30 a.m. CT, St Onge Livestock Co., St. Onge, SD, located at 11693 Sale Barn Rd, St Onge, SD 57779.

Attendees at this South Dakota session may participate in-person (seating limited to 100) or virtually. For virtual attendees, the meeting will be broadcasted live as a webinar. Please register in advance at https://www.zoomgov.com/webinar/register/WN_RJWF_E1zR22eYrlFF3akbA. After registering, you will receive a confirmation email with additional instructions. The event will start promptly at 8:30 a.m. CT and end no later than 10:00 a.m. CT. Attendees will be permitted to submit Q&A via the Zoom meeting. The event will be recorded and the recording will be posted on the AMS website.

Tuesday, June 27, 2023, 1 p.m. CT, in the El Vaquero room at the historic Santa Fe Depot in Dodge City, KS, located at 201 E Wyatt Earp Blvd, Dodge City, KS 67801.

Attendees at this Kansas session may participate in-person (seating limited to 50) or virtually. For virtual attendees, the meeting will be broadcasted live as a webinar. Please register in advance at https://www.zoomgov.com/webinar/register/WN_AkUoKqBJTQyuPUcGdmME0w. After registering, you will receive a confirmation email with additional instructions. The event will start promptly at 1 p.m. CT. Attendees will be permitted to submit Q&A via the Zoom meeting. The event will be recorded and the recording will be posted on the AMS website.

For additional information about any of these sessions, please contact Michael Sheats, Livestock, Poultry, and Grain Market News Director, at 202-690-3145.

The Consolidated Appropriations Act, 2022 (Pub. L. 117-103, March 15, 2022) directed AMS to establish a Cattle Contracts Library pilot program to increase market transparency for cattle producers. The library provides transparency into both commonalities and key differences in contracts, as well as the context for those terms through the provision of relevant volume numbers.  The Final Rule implementing the Pilot was published in the Federal Register on December 7, 2022, with an effective date on January 6, 2023.  The Pilot became publicly accessible on January 31, 2023.

In the development of the Pilot, AMS held nearly 50 outreach sessions with cattle industry stakeholders in which feedback was gathered and, when possible, incorporated into the Pilot’s design.  Since the public launch of the Pilot, AMS has continued its outreach and feedback gathering efforts through participation at industry conferences, training events, and direct outreach to industry members.



U.S. Agricultural Exports in Fiscal Year 2023
Forecast Down $3.5 Billion to $181.0 Billion; Imports at $198.0 Billion, Down $1.0 Billion
USDA Economic Research Service

U.S. agricultural exports in fiscal year (FY) 2023 are forecast at $181.0 billion, down $3.5 billion from the February forecast. This revision is driven by decreases in corn, wheat, beef, and poultry exports. Corn exports are forecast $2.1 billion lower to $14.5 billion on lower unit values and volumes as Brazil is poised to harvest a record second crop corn. Wheat exports are projected down $900 million to $7.4 billion due to lower volumes and unit values, as well as increased competition. Overall grain and feed exports are projected $3.3 billion lower at $40.5 billion. Total livestock, poultry, and dairy exports are projected to decrease by $1.2 billion to $39.3 billion, as declines in beef and poultry exports more than offset increases in dairy exports. Soybean exports are projected up $300 million to $32.3 billion on slightly higher volumes. Overall oilseed and product exports are forecast $100 million higher to $43.5 billion. Cotton exports are forecast at $6.0 billion, up $100 million, as higher volumes more than offset lower unit values. Horticultural exports are unchanged at $39.0 billion. The forecast for sugar and tropical product exports is revised up $400 million to $6.4 billion on higher unit values for sugar and cocoa products. Tobacco and product exports are adjusted upward by $400 million due to stronger-than-expected shipments and higher unit values. Ethanol exports are forecast unchanged at $3.6 billion.

The export forecast for China is unchanged at $34.0 billion from February. Exports to Mexico are projected up $500 million to $28.5 billion whereas exports to Canada remain unchanged at $27.8 billion.

U.S. agricultural imports in FY 2023 are projected at $198.0 billion, down $1.0 billion from the February forecast. This decrease is primarily driven by horticultural, livestock, dairy, and poultry product imports.

The forecasts in this report are based on policies in effect at the time of the May 12, 2023, World Agricultural Supply and Demand Estimates (WASDE) release, and the U.S. production forecasts therein.

View the full report here: https://www.ers.usda.gov/webdocs/outlooks/106628/aes-124.pdf?v=3942.4.  



Fertilizers' Prices Mostly Higher for First Time Since November

According to retail fertilizer prices tracked by DTN for the fourth week of May 2023, fertilizers are mostly higher. This is the first time since November of 2022 that more fertilizers were higher in price than lower compared to the prior month.

Five of the eight major fertilizers are higher in price compared to last month. Only one fertilizer was substantially more expensive. DTN designates a significant move as anything 5% or more. Urea was 5% higher compared to the prior month. The nitrogen fertilizer had an average price of $623/ton. Four other fertilizers were slightly more expensive looking back a month. DAP had an average price of $834/ton, MAP $832/ton, potash $624/ton and UAN32 $509/ton.

Three fertilizers were lower compared to a month ago. One fertilizer, anhydrous, was 14% less expensive with an average price of $798/ton, or $130/ton less than last month. After dropping below $1,000/ton just five weeks ago, anhydrous fell below the $800/ton level for the first time since the fourth week of September 2021. That week the average anhydrous price was $782/ton. Two fertilizers were just slightly less expensive compared to the prior month. 10-34-0 had an average price of $739/ton and UAN28 $419/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.68/lb.N, anhydrous $0.49/lb.N, UAN28 $0.75/lb.N and UAN32 $0.80/lb.N.

All fertilizers are now lower by double digits compared to one year ago. 10-34-0 is 19% less expensive, DAP is 21% lower, MAP is 23% less expensive, potash is 29%, UAN32 is 30% lower, UAN28 is 34% less expensive, urea is 37% less expensive and anhydrous is 48% lower compared to a year prior.



Rising Cost of Grain Storage Will Force Elevators to Lower Bids, Widen Basis

The cost of storing grain, commonly referred to as the cost of carry, has soared to record highs due to rising interest rates, high commodity prices and increasing costs for labor, insurance, transportation and energy. That is putting a significant squeeze on grain elevators, which may be forced to lower their local bids on grain to manage through the unfavorable economics of holding commodities.

According to a new report from CoBank’s Knowledge Exchange, the interest-related cost of carry in the 2023-2024 crop year will increase 21% for corn, 42% for soybeans and 50% for all-wheat, year-over-year. Each of those costs is estimated to be the highest on record. The projections are based on the forecasted average annual interest rate for grain merchandisers of 7.75% for the 2023-2024 crop year, and USDA’s marketing year average price forecasts of $4.80/bu. for corn, $12.10/bu. for soybeans and $8.00/bu. for all-wheat.

Financing the ownership of corn, wheat and soybean inventories is a major cost of carry for grain elevators. Interest expense as a percentage of the total cost of carry can vary widely among grain merchandisers and between crop years. But it can typically comprise one-quarter to one-third or more of a grain elevator’s total cost of storing grain and oilseeds.

“For grain elevators, the sharp rise in interest rates couldn’t have come at a worse time as they borrow higher-priced funds on commodities that have also remained at historically high prices,” said Tanner Ehmke, lead grains and oilseeds economist for CoBank. “And while grain elevators are motivated to move inventory as fast as possible to lower carrying costs, processors and end users will want to delay ownership of commodities to reduce their own inventory costs.”

The persistent inverse in futures markets, where the price of later-dated contracts are lower than spot prices, further complicates matters for grain elevators. In normal market conditions when supplies are abundant, forward futures contracts are priced higher than the nearby spot prices to account for storage costs and a small risk premium. When futures prices are lower than spot prices, farmers are motivated to sell commodities rather than hold them for future sale.

Cooperative elevators are in business to buy and market their members’ grain. That means they will be obligated to carry inventory despite the economic disincentive of doing so. Holding commodities in high-interest rate environments also ties up a company’s working capital, which can put a strain on other business operations. This is especially problematic in volatile markets when liquidity is needed for managing margin calls on futures hedges.

“It’s a challenging situation for cooperative grain elevators as well as farmers, because it comes at a time when farmers are also facing higher costs,” said Ehmke. “Co-op managers will need to closely scrutinize their operating costs and impose greater discipline on cost wherever possible. And if they need to lower their bids and widen basis to cover storage costs, they should communicate early and consistently with farmer members who will be impacted.”

The positive news on carrying costs is that the Federal Reserve is expected to hold interest rates at their current levels for the foreseeable future. And USDA is forecasting corn, soybean and all-wheat prices to drop for the 2023-2024 crop year from the year prior, which will take some pressure off carrying costs.



April Prices Received Index Up 1.9 Percent

The April Prices Received Index 2011 Base (Agricultural Production), at 130.8, increased 1.9 percent from March but decreased 2.2 percent from April 2022. At 125.6, the Crop Production Index was up 5.8 percent from last month and 2.4 percent from the previous year. The Livestock Production Index, at 135.8, decreased 1.8 percent from March, and 6.2 percent from April last year. Producers received higher prices during April for lettuce, broilers, cattle, and broccoli but lower prices for market eggs, hogs, milk, and apples. In addition to prices, the volume change of commodities marketed also influences the indexes. In April, there was increased monthly movement for strawberries, milk, broilers, and lettuce and decreased marketing of corn, soybeans, hay, and cattle.

April Prices Received by Farmers
Crop production: The April index, at 125.6, is 5.8 percent higher than March and 2.4 percent higher than April 2022. Grain & oilseed, vegetable & melon, fruit & tree nut, and other crop indexes are all up.

Grain and oilseed: The April index, at 114.9, is up 0.3 percent from March but down 6.0 percent from April 2022. Feed grain and food grain index increases more than offset the lower oilseed index.

Feed grain: The April index, at 111.6, increased 0.4 percent from last month but decreased 5.2 percent from a year ago. The corn price, at $6.70 per bushel, is up 3 cents from last month but down 37 cents from April 2022.

Food grain: At 119.1, the index for April increased 0.1 percent from the previous month but decreased 9.1 percent from a year ago. The April price for rice, at $18.80 per cwt, is 40 cents higher than March and $2.70 higher than April 2022. The April price for all wheat, at $8.31 per bushel, is 3 cents lower than March and $1.89 lower than April 2022.

Oilseed: At 118.4, the index for April decreased 0.2 percent from March and 6.0 percent from April 2022. The soybean price, at $14.90 per bushel, is unchanged from March but 90 cents lower than April a year earlier.

Other crop: The April index, at 113.4, is up 0.5 percent from the previous month but down 1.0 percent from April 2022. The all hay price, at $249.00 per ton, is $18.00 higher than March and $30.00 higher than April 2022. At 76.0 cents per pound, the price for upland cotton is 4.3 cents lower than March and 23.4 cents lower than April 2022.

Livestock production: The index for April, at 135.8, decreased 1.8 percent from the previous month and 6.2 percent from April a year earlier. Dairy and poultry & egg index decreases more than offset the higher meat animal index.

Meat animal: At 131.9, the April index increased 2.0 percent from the previous month and 9.9 percent from a year earlier. The April beef cattle price of $171.00 per cwt is $7.00 higher than the previous month and $32.00 higher than April 2022. At $57.00 per cwt, the April hog price is $4.70 lower than March and $19.20 lower than a year earlier.

Dairy: The index for April, at 103.0, is down 1.9 percent from the previous month and 23 percent from April a year ago. The April all milk price of $20.70 per cwt is 40 cents lower than March and $6.30 lower than April 2022.

April Prices Paid Index Down 0.2 Percent
The April Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 139.7, is down 0.2 percent from March 2023 but up 1.5 percent from April 2022. Lower prices in April for feeder pigs, wage rates, nitrogen, and complete feeds more than offset higher prices for feeder cattle, hay & forages, gasoline, and LP gas.



Dow Partners with New Energy Blue to Drive Renewable Plastics from Corn Stover

Dow and New Energy Blue have partnered in North America to produce bio-based ethylene feedstock for Dow resins, marking the first agreement of its kind in the region. This collaboration aims to utilize corn residues and agricultural waste for the production of renewably sourced resins and plastics. By purchasing New Energy Blue's bio-based ethylene, Dow is supporting waste recycling innovations and meeting the growing demand for bio-based plastics.

The project involves the construction of a new facility in Mason City, Iowa, called New Energy Freedom. This facility will process 275KT of corn stover, which refers to the leaves and stalks left after corn harvest, to produce second-generation ethanol and clean lignin. Nearly half of the ethanol will be transformed into bio-ethylene, which Dow will utilize to create bio-based plastic materials.

Dow's involvement extends beyond the initial facility, as they are supporting the development of four additional New Energy Blue projects. This support allows New Energy Blue to scale up production and provides farmers with a reliable market for their agricultural residues. Collectively, these projects are estimated to displace over one million tons of greenhouse gas emissions annually, facilitating a shift towards renewable feedstocks for raw material sourcing.

Utilizing corn stover as a carbon source enables the reuse of carbon dioxide that would otherwise be released into the atmosphere during decomposition. The Iowa processing facility will source corn stover directly from local farmers, allowing them to generate additional income while employing farming practices that enhance carbon retention in the soil.

To ensure compliance with sustainable biomass production requirements, Dow intends to seek ISCC certification for the integration of agriculture-based ethylene into its manufacturing process. This certification would provide proof of adherence to sustainable biomass production standards, traceability of origin, and documentation of greenhouse gas savings compared to fossil fuels. ISCC Plus's chain of custody certification would enable Dow's customers to track and account for the use of bio-based materials in their supply chains.

The collaboration between Dow and New Energy Blue holds the promise of creating bio-based plastics from renewable resources. By utilizing a variety of biomass sources, including corn stover, grain straws, and tall perennial grasses, the partnership aims to reduce carbon emissions from farming, support rural farmers, and enable the production of sustainable, low-carbon plastics used in everyday life.



University Products Highlights Anaplasmosis Threat and Economic Impact of Thin Cows

University Products, a frontrunner in animal health innovation, recently brought attention to the economic challenges associated with thin cows, particularly those suffering from anaplasmosis, and the dangers posed by Cattle Fever Ticks (CFT) in the beef industry. The company encourages farmers to prioritize body condition scoring (BCS), along with anaplasmosis vaccination, to support cattle health initiatives that optimize productivity and minimize economic losses.

The importance of BCS as a crucial tool for assessing the physical condition of cows during the most demanding period of gestation cannot be overstated, particularly in winter. Thin cows can have difficulty rebreeding, are more susceptible to diseases such as anaplasmosis, and are expensive additions to a herd. Early corrective measures can prevent a wide array of health issues and improve the overall well-being of the herd.

But defining "thinness" is not always easy. The University of Guelph found that even trained evaluators have difficulty determining accurate body condition scores in winter. The ideal BCS for mature cows at calving is 2.5, while first-calf heifers should have a score of 3.0. All females should have a score of 2.5, 30 days before the start of the breeding season.

Dr. Donald Luther of University Products also emphasized the importance of BCS: "Body condition scoring is a cost-effective and accurate method to assess the health of your cows. Proper BCS management not only promotes the welfare of the animals but also contributes to the economic success of the farm."

University Products recommends a comprehensive approach to herd health, which includes the services of a livestock nutrition expert to balance rations and ensure cattle receive adequate levels of energy, protein, fiber, vitamins, and minerals. Maintaining proper body condition during pregnancy supports the immune systems of both the dam and calf, improving the overall health of the herd. And of course, vaccination helps protect the entire herd from the ongoing tick-borne anaplasmosis endemic.

The USDA Animal and Plant Health Inspection Service recently emphasized the importance of addressing Cattle Fever Ticks (CFTs: Rhipicephalus (Boophilus) annulatus and R. (B.) microplus), which serve as vectors for bovine babesiosis and anaplasmosis. The Cattle Fever Tick Eradication Program, launched in 1906, has confined CFT to a permanent quarantine zone running from Brownsville to Del Rio, Texas, along the Mexican border. Mounted tick patrols (tick riders) help collect and treat stray animals that wander in from Mexico and work alongside partners at the Texas Animal Health Commission. The program systematically detects, treats, and eradicates tick infestations, while other CFT populations are found in Puerto Rico and the U.S. Virgin Islands. Unfortunately, while these diseases can and continue to be mitigated, they still continue to plague the cattle industry.

University Products is committed to developing a wide spectrum of modern solutions for the challenges facing the cattle industry, including groundbreaking research into vaccines for bovine babesiosis and theileriosis. The company's focus on proactive management strategies, such as BCS, addressing the threat of CFT, and combining both with innovative vaccine research and products, aims to create a healthier and more sustainable future for the cattle industry.