Monday August 28 Crop Progress + Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending August 27, 2023, there were 6.4 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 24% very short, 30% short, 45% adequate, and 1% surplus. Subsoil moisture supplies rated 25% very short, 37% short, 37% adequate, and 1% surplus.

Field Crops Report:
Corn condition rated 8% very poor, 16% poor, 21% fair, 41% good, and 14% excellent. Corn dough was 94%, ahead of 87% last year, and near 91% for the five-year average. Dented was 59%, near 56% last year and 57% average. Mature was 11%, near 7% last year, and ahead of 5% average.

Soybean condition rated 9% very poor, 15% poor, 24% fair, 40% good, and 12% excellent. Soybeans setting pods was 92%, behind 97% last year, and near 95% average. Dropping leaves was 8%, near 9% last year, and equal to average.

Sorghum condition rated 3% very poor, 7% poor, 26% fair, 45% good, and 19% excellent. Sorghum headed was 96%, ahead of 84% last year, and near 95% average. Coloring was 44%, ahead of 31% last year, but near 45% average. Mature was 1%, equal to both last year and average.

Oats harvested was 96%, near 100% last year and 99% average.

Dry edible bean condition rated 0% very poor, 1% poor, 25% fair, 69% good, and 5% excellent. Dry edible beans blooming was 95%, near 99% last year. Setting pods was 86%, near 83% last year. Dropping leaves was 4%, equal to last year.

Pasture and Range Report:
Pasture and range conditions rated 7% very poor, 15% poor, 26% fair, 46% good, and 6% excellent.



IOWA CROP PROGRESS & CONDITION REPORT

Hot and humid weather with well below normal precipitation throughout Iowa gave farmers 6.5 days suitable for fieldwork during the week ending August 27, 2023, according to the USDA, National Agricultural Statistics Service. Field activities included cutting and baling hay as well as harvesting oats. Persistent dry weather has put continued stress on crops, especially soybeans with multiple reports of disease entering fields.

Topsoil moisture condition rated 23 percent very short, 45 percent short, 31 percent adequate and 1 percent surplus. Subsoil moisture condition rated 28 percent very short, 45 percent short, 26 percent adequate and 1 percent surplus.

Corn in or beyond the dough stage reached 96 percent this week, 8 days ahead of last year and 11 days ahead of the 5-year average. Sixty-two percent of the corn crop was dented or beyond, 5 days ahead of last year and 4 days ahead of normal. Six percent of the State’s corn crop has reached maturity. Corn condition declined 6 percentage points to 54 percent good to excellent.

Soybeans setting pods reached 97 percent, 1 week ahead of last year and 9 days ahead of the average. Soybeans turning color was 15 percent this week, 2 days ahead of normal. Reports of soybeans dropping their leaves were received this week. Soybean condition dropped 6 percentage points to 53 percent good to excellent.

Oats harvested for grain is nearly complete.

The State’s third cutting of alfalfa hay reached 90 percent complete, 18 days ahead of last year and 17 days ahead of the average.

Pasture condition rated 23 percent good to excellent. The hot and humid weather severely stressed livestock across the State this week, with several reports of death loss.



Despite Heat Wave, US Corn, Soybean Conditions Drop Just Slightly in Week Ended Aug. 27

Despite the extreme heat that blasted much of the Corn Belt last week, national corn and soybean condition ratings declined just slightly, USDA-NASS reported in its weekly Crop Progress report on Monday. Though the region will get a temporary break from the heat this week, crops won't get much relief from the dryness, according to forecasts.

CORN
-- Crop progress: Corn in the dough stage as of Sunday, Aug. 27, was estimated at 88%, 4 percentage points ahead of last year's 84% and 2 points ahead of the five-year average of 86%. Corn dented was pegged at 51%, 7 points ahead of last year's 44% and 2 points ahead of the five-year average of 49%. Corn mature was 9%, 2 points ahead of last year's 7% and 1 point ahead of the five-year average of 8%.
-- Crop condition: Nationally, corn was rated 56% good to excellent, down 2 percentage points from 58% the previous week but still slightly above 54% a year ago at this time.

SOYBEANS
-- Crop progress: Soybeans setting pods were pegged at 91%, 1 percentage point ahead of both last year and the five-year average of 90%. Soybeans dropping leaves was estimated at 5%, 1 point ahead of last year's 4% and 1 point behind the five-year average of 6%.
-- Crop condition: Soybeans were rated 58% good to excellent as of Sunday, down 1 point from 59% the previous week and still slightly above 57% a year ago at this time.

SPRING WHEAT
-- Harvest progress: Spring wheat harvest continued at a steady pace last week, moving ahead by another 15 percentage points to reach 54% completed as of Sunday. That was 9 percentage points behind the five-year average of 63%.
-- Crop condition: USDA said 37% of the spring wheat crop was rated good to excellent as of Aug. 27, down 1 percentage point from last week's 38% and well below 68% a year ago.

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Lower Elkhorn Natural Resources District Board of Directors Approves JEO Consulting Group As Consultant for North Fork Elkhorn River Watershed Plan

At the August 24th Lower Elkhorn Natural Resources District (LENRD) Board of Directors Meeting, Directors approved JEO Consulting Group (JEO) as the consultant for the North Fork Elkhorn River Watershed Plan/Environmental Document (Watershed Plan). This project is about identifying and evaluating opportunities to reduce flood risk within the watershed, notably within the communities of Pierce and Osmond. However, the study area also includes the communities of Plainview, Foster, McLean, Magnet and Wausa.

While Osmond has interest in flood reduction of their own, the Pierce levee may need improvements to meet FEMA accreditation. Five proposals for the project were submitted and reviewed by the Evaluation and Selection Committee on Wednesday, August 23rd. Though all the candidates submitted strong proposals, JEO stood out to the selection committee because of their emphasis on community engagement as well as their familiarity and experience in the communities of Pierce and Osmond.

“We had good proposals from five highly reputable firms. They all really did put their best foot forward,” said interim General Manager, Brian Bruckner. “The stakeholder engagement was a high priority and the JEO proposal really articulated well what their intention and commitment would be. That was a deciding factor for the steering committee.”

Directors have a key focus on stakeholder and community engagement for this Watershed Plan project. “One thing that we’re looking at is buy-in from community members,” said Director Chad Korth. “JEO had the most contact meetings set up with community peers, and that’s what we’re looking for. The more community buy-in, the better.”

A stakeholder advisory team will be created to assist the LENRD staff, Board, and JEO with decisions regarding this project. A series of stakeholder meetings and open houses are planned throughout the duration of the project schedule.  The first open house is planned for early this fall. More detailed information will be coming soon and community involvement in the areas within the watershed plan boundaries is strongly encouraged.

Not only has JEO worked with multiple NRDs with similar Watershed & Flood Prevention Operations Plans, but they have also worked on flood risk studies for Pierce and Osmond.

Approval of Conservation Cost-Share Programs Cost Docket Changes
Directors approved updates to the average cost dockets for the Agroforestry, Cover Crop and Conservation Cost-share Programs. Projects Manager, Curt Becker, provided Directors with information about the changes that will be implemented. Cost-share program cost docket changes are made annually to ensure the rates are kept current.

LENRD Quantity Management Sub Area – 2” Allocation
Directors also voted unanimously to approve an additional two acre-inches of groundwater, only for irrigation wells in the LENRD Quantity Management Sub Areas, to be utilized for germination and establishment of a cover crop after September 15, 2023. The Board has the authority to grant an additional two-acre inches of groundwater to be used for beneficial purposes – specifically for germination and establishment of a cover crop – in any quantity management subarea after September 15th of each calendar year. This also grants District staff administrative authorization to approve use of the additional allocation prior to September 15th on a case-by-case basis.

Approval of a Work Contract for the Completion of Flow Meter Preventative Maintenance
Directors voted to approve a Work Contract with Derek and Austin Becker (Norfolk) to complete flow meter preventative maintenance inspections and services in Antelope and Madison Counties. For the past five years, the LENRD has had an agreement to contract out preventative maintenance on flow meters within the district. There are approximately 848 flow meters in this area and the cost is approximately $54 per meter. The price per meter is less than last year due to the location of the work and the distance between wells. The contractors will use their own vehicle and equipment to conduct the maintenance and will perform a physical exam of each meter.

Budget Subcommittee Report
Directors agreed in a 12-1 vote to approve an additional 1% increase in Restricted Funds Authority for the 2024 Fiscal Year. The biggest misconception is that the approval of the additional 1% increase in Restricted Funds Authority means the Board is approving increasing the political subdivision’s actual property tax request by 1%. However, by approving the additional 1%, the Board is only increasing their authority to generate additional restricted funds, not actually increasing the property tax request. The primary component of restricted funds is property taxes, but other types of receipts include motor vehicle pro-rate, in-lieu of taxes, transfers of surplus fees, prior year capital improvements that were not spent, and nameplate capacity tax.

Approving the 1% increase does not mean that the funds will be spent but it will grant the Board authority to use them if needed. Restricted Funds have not been used by the LENRD in at least the last 15 years. The funds are typically used in an emergency. Prior to designating how the funds should be used, a Special Board Meeting will be held to determine the use - which  must be approved by a majority vote.

Directors also approved District staff to advertise and present the proposed Fiscal Year 2024 Budget and Long Range Plan at a public hearing on Thursday, September 14, 2023 at 7:00 p.m. at the Lower Elkhorn NRD Board Room (1508 Square Turn Boulevard, Norfolk, NE 68767).

To learn more about the 12 responsibilities of the Nebraska’s NRDs and how your local district can work with you and your community to protect your natural resources, visit www.lenrd.org and sign up for our monthly emails. The next board of directors meeting will be Thursday, September 28, 2023 at the LENRD office in Norfolk at 7:30 p.m. and on Facebook Live.



New Appointment and Leadership Selected for the Nebraska Corn Board

Gov. Jim Pillen recently appointed Matt Sullivan as the District 2 Director of the Nebraska Corn Board (NCB), which represents Adams, Clay, Fillmore, Franklin, Nuckolls, Thayer and Webster counties. Sullivan, from Superior, is replacing John Greer, from Edgar, who served on the board since 2014 and chose not to seek reappointment.

“The Nebraska Corn Board is continually striving to maintain and build the value of the corn I grow and made me want to get involved,” said Sullivan. “When John and I began chatting about the board, his belief in the organization and mentioned his choice not to run again, the opportunity to invest my time was clear. I’m honored to be able to represent District 2 and the farmers in my area.”

Sullivan is a fourth generation farmer who grows corn and soybeans in south-central Nebraska. After graduating from Kansas State University, he worked in Oklahoma for 18 years as a director of food manufacturing for Braum’s Ice Cream. With a desire to move back and resume farming, he and his wife purchased their father and father-in-law’s operations and moved back to Nebraska in June of 2010. Sullivan has been on the Superior School Board since 2012 and president since 2016. He also has a crop insurance agency servicing clients in Southern Nebraska and Northern Kansas. Teresa, his wife, is an accountant and owns and operates a CPA practice.

“The Nebraska Corn Board is elated to welcome Matt to the board,” said Jay Reiners, Chairman of NCB. “With his extended experience in agriculture, manufacturing and food science, we look forward to the wealth of knowledge he will contribute. I also want to thank John Greer for his leadership on the board. He will be greatly missed and will always appreciate his level-headed guidance and knowledge he provided.”

Sullivan’s position is effective immediately following his appointment by Gov. Pillen. Additionally, Brandon Hunnicutt of Giltner, Nebraska, was reappointed to serve as the District 3 Director.

The Nebraska Corn Board (NCB) also elected three farmers to serve leadership roles at its recent board meeting on August 18. The leadership roles are effective immediately and are yearlong in duration, with the possibility of being reelected.

Jay Reiners, At Large Director, was reelected as chairman of the board. Reiners farms near Juniata, where he grows field corn, seed corn and soybeans. He has been farming for over 30 years and is the fourth generation managing the family farm. He graduated with an associate’s degree in general agriculture from the University of Nebraska-Lincoln (UNL). Reiners has been with NCB since 2017.

Brandon Hunnicutt, District 3 director, was reelected as vice chair of NCB. Hunnicutt farms near Giltner with his father and brother. On his farm, Hunnicutt grows corn, white corn, non-GMO corn, popcorn and soybeans. He earned his bachelor’s degree in agricultural business from UNL and has served on the board since 2014.

Andy Groskopf, District 8 Director, was reelected secretary/treasurer of the board. Groskopf farms near Scottsbluff, where he farms irrigated corn and dry edible beans. He has been farming for over 20 years and is the fourth generation managing the family farm. He attended Western Nebraska Community College for automotive technologies. Groskopf has been with NCB since 2018.

“I look forward to what we will accomplish this upcoming year,” said Kelly Brunkhorst, executive director of NCB. “As we implement our strategic plan, we will be making decisions that look to align with our goals and objectives, and this leadership team will be instrumental in guiding our efforts.”



EPA Selects University of Nebraska-Lincoln for Nearly $100K Grant Toward Groundwater Environmental Project

The U.S. Environmental Protection Agency (EPA) is announcing the selection of 33 organizations to receive over $3.1 million in funding for projects under the Environmental Education Grants program, including $99,795 to the University of Nebraska-Lincoln.

The University of Nebraska-Lincoln will use the funding to expand the Know Your Well Project and develop a science curriculum that will be rolled out to over 100 rural Nebraska high school students with the goals of increasing science literacy, awareness of agricultural practices, and groundwater stewardship.

“We know that climate change is one of the greatest environmental challenges of our time, and it demands bold and innovative solutions,” said EPA Administrator Michael S. Regan. “This year’s grant recipients represent some of the brightest minds from across the country, and they demonstrate what it means to couple the power of environmental education with a commitment to creating a future with clean air, clean water, and a healthy planet for all.”

“We look forward to adding curriculum to the set of tools currently available to teachers involved in the Know Your Well program,” said Nebraska Water Center Assistant Director Rachael Herpel. “This will help us build capacity and eventually expand the program beyond Nebraska.”

Nationwide, the funding will range from $50,000 to $100,000 to organizations that provide environmental education activities and programs. This year’s grantees will conduct project activities in 27 states and the U.S. Virgin Islands. Among the grant recipients are four Minority Serving Institutions.

EPA anticipates providing funding for these projects once all legal and administrative requirements are satisfied.



Loran Steinlage Receives Iowa Leopold Conservation Award

Loran Steinlage of West Union has been selected as the recipient of the 2023 Iowa Leopold Conservation Award®.

Loran, who owns and operates FLOLO Farms in Fayette County, will be formally presented with the $10,000 award this December at The Big Soil Health Event in Cedar Falls.

Given in honor of renowned conservationist Aldo Leopold, the prestigious award recognizes farmers, ranchers, and forestland owners who inspire others with their dedication to land, water, and wildlife habitat management on private, working lands.

Sand County Foundation and national sponsor American Farmland Trust annually present the Leopold Conservation Award to farmers, ranchers and forestland owners in 27 states for extraordinary achievement in voluntary conservation. In Iowa, the award is presented with state partners: Conservation Districts of Iowa, Farmers National Company, and Practical Farmers of Iowa.

Earlier this year, Iowa landowners were encouraged to apply (or be nominated) for the award. Applications were reviewed by an independent panel of agricultural and conservation leaders. Last year’s recipient was Seth Watkins of Clarinda.

The Leopold Conservation Award is given to farmers, ranchers, and forestland owners across the U.S. in honor of renowned conservationist Aldo Leopold. In his influential 1949 book, A Sand County Almanac, Leopold called for an ethical relationship between people and the land they own and manage.

The Iowa Leopold Conservation Award is made possible through the generous support of American Farmland Trust, Conservation Districts of Iowa, Farmers National Company, Practical Farmers of Iowa, Sand County Foundation, Soil Regen, USDA Natural Resources Conservation Service, Nancy and Marc DeLong, Iowa Agriculture Water Alliance, and Leopold Landscape Alliance.

ABOUT LORAN STEINLAGE
Loran Steinlage has the qualities that make a good land steward.

He’s open-minded to innovation, yet patient with the process of trial and error. He welcomes researchers to measure the impact and efficacy of each conservation practice he adopts on his 900-acre farm in Fayette County.

Loran is most passionate about sharing what he’s learned with others, from local youth to farmers from Iowa, Ukraine, or Australia. Whether participating in soil health field days or podcasts, he’s helping forge a new path for modern agriculture.

Loran’s the first to admit he wasn’t always this way. He was once a “conventional” corn and soybean grower focused on yields and renting as much land as possible. When he and his wife Brenda learned their son was diagnosed with brain cancer, he scaled back his rented acreage to spend more time at home. He started looking differently at the land his parents had passed on to him.

While experimenting with cover crops and no-till practices, Loran saw an improvement in his soil’s health. He realized the cover crops would be more robust and beneficial if they were planted sooner. This led him to explore ways to interseed cover crops into standing fields of corn and soybeans.

Before becoming a pioneer in the practice of relay cropping, Loran drew inspiration by connecting with farmers across the nation through social channels and peer groups. Among the farmer mentors he credits with advancing his conservation ethic was the late Dave Brandt of Ohio.

Through global travels and interactions, Loran recognized there’s no room for complacency within mainstream agriculture in the face of environmental challenges ranging from climate change to water pollution. He believes it’s up to farmers to not just be ahead of the curve but to drive the change.

In most cases, there was no blueprint for the changes Loran saw as important, nor did his practices fit within available conservation programs. Undaunted, he cobbled ideas together with his network of peers and brought them home.

Loran works with a variety of organizations to host field trials at his family’s FLOLO Farms. The data collected is used to study the agronomics of conservation practices, water quality impacts, flood mitigation, crop insurance provisions, and market viability of alternative crops and methods.

After altering a row-crop combine to be able to harvest cereal grains in his relay-cropped fields, Loran saw the need to marry agribusiness with stewardship efforts. He works with an agricultural manufacturer to bridge a gap between farmers and the engineers designing farm machinery.

In 2021, when Loran welcomed Iowa’s Department of Natural Resources to survey a stream that dissects his farm, they discovered it was full of trout. Without proper stewardship in the surrounding fields, this stream would not support fish that are extremely sensitive to contaminants in water.

Loran credits growing heritage varieties of corn for a nearby brewery with making his farm ecologically and economically resilient. However, it’s not just an anecdotal success. He believes growing diverse crops, regenerating soil, and ensuring clean water, leads to increased farm profitability, environmental regeneration, and rural invigoration.

As Loran grows his 38th crop of corn this year, he’s as committed as ever to helping others see how conservation advances will impact future crops.

ACCOLADES
“The Leopold Conservation Award highlights the importance of prioritizing conservation and carries on the inspiring work of Aldo Leopold,” said Sally Worley, Practical Farmers of Iowa Executive Director. “We are honored to support an award that recognizes individual efforts towards improved land, water and wildlife.”

“The landowner plays a critical role in the conservation of America’s farmland resources. Sustainable practices not only benefit the local environment and community, but also improves the quality and value of the land as an asset for the current owner and future generations,” said Clayton Becker, Famers National Company President. “This is why Farmers National Company is honored to sponsor this prestigious award recognizing hard work and commitment to conservation.”

“One of Loran’s most important characteristics is his willingness to be open minded in conservation. It is often difficult to try new things, but Loran demonstrates that he is willing to accept conservation innovation as a challenge, not an obstacle,” said John Whitaker, Conservation Districts of Iowa Executive Director.

“Recipients of this award are examples of how Aldo Leopold’s land ethic is alive and well today. Their dedication to conservation shows how individuals can improve the health of the land while producing food and fiber,” said Kevin McAleese, Sand County Foundation President and CEO.

“As the national sponsor for Sand County Foundation’s Leopold Conservation Award, American Farmland Trust celebrates the hard work and dedication of the Steinlage family,” said John Piotti, AFT President and CEO. “At AFT we believe that conservation in agriculture requires a focus on the land, the practices and the people and this award recognizes the integral role of all three.”



ACE, eFlexFuel Technology Demonstrate Benefits of Hybrid Electric Flex Fuel Vehicle at Conference in Minneapolis

Two years after the public unveiling of the American Coalition for Ethanol (ACE) Hybrid Electric Flex Fuel vehicle at its 2021 annual conference in Minneapolis, ACE demonstrated the project’s value to conference attendees at this year’s conference, once again held in the Twin Cities. ACE’s Chief Marketing Officer Ron Lamberty shared updated stats over the first two years of driving the 2019 Ford Fusion standard hybrid, made flex fuel capable courtesy of California E85 wholesaler Pearson Fuels and an eflexfuel.com conversion kit. The vehicle, nicknamed “HEFF,” was on display at the host hotel, and Juha Honkasalo, head of industry relations for eFlexFuels Technology was also onsite to answer questions of interested conference attendees.

Two years ago, with the push for net zero vehicles intensifying, and “net-zero” being widely understood as meaning battery electric vehicles (BEVs) only, ACE announced the first-of-its-kind, three-year vehicle demonstration project to disrupt the “EV-only” narrative by showing a standard hybrid vehicle powered by higher ethanol blends can have lifecycle greenhouse gas (GHG) emissions as low or lower than plug-in electrics, and is likely to reach net-zero long before BEVs.

Even after several years of huge federal rebates for BEVs, hybrids still make up 80 percent of registered electric vehicles, and 90 percent of hybrids are standard hybrids while 10 percent are plug-in hybrids. “Range anxiety” continues to be a top reason drivers hesitate to buy EVs, and hybrids address those fears. Lamberty said hybrids make sense from a total GHG reduction standpoint, too, especially when teamed with ethanol. He said ACE’s project “reminds everyone a battery isn’t a fuel source, it’s a fuel tank, and to reduce carbon pollution, you fill a vehicle’s ‘tank’ with the cleanest fuel available, which is currently E85. While BEVs don’t have tailpipe emissions, electricity doesn’t come out of the wall, it comes from power plants that have plenty of emissions. Sixty percent of U.S. electricity still comes from burning fossil fuels, while E85 continues to lower its carbon intensity (CI), with some ethanol CIs in the 20’s.”

ACE devised the hybrid flex-fuel project after calculating a hybrid electric vehicle running on the lowest CI E85 available at the time (85 percent corn-fiber ethanol, 15 percent renewable naphtha) could obtain a total GHG score as low as 40 to 50 grams of CO2 per mile – far lower than current EPA total GHG emissions calculations for PHEVs or full EVs. “And those CI numbers don’t give ethanol credit for sustainable ag practices farmers already use or will be adopting, or the massive reductions ethanol will see as carbon capture and sequestration technologies are put in place,” Lamberty added.

Yet, while hybrid vehicle sales increase, no carmaker has ever offered a flex fuel hybrid in the U.S. So, ACE partnered with eFlexFuel to make their own. The conversion kit manufacturer is happy with the results so far. “This project with ACE has been a success,” said Juha Honkasalo, head of industry relations at eFlexFuel Technology. “The results point out great potential for decarbonization in the current vehicle fleet with technology and fuel that are already widely available. With ethanol, we can achieve similar or even a lower carbon footprint than a plug-in electric vehicle. Best of all, flex fuel and ethanol are affordable and don’t force consumers to compromise on their driving. We were excited to demonstrate this technology at the ACE Conference.”

Lamberty records miles driven, gallons, price and ethanol content of every fuel purchase, and calculating E10 use and cost, based on a benchmark set driving 4,500 miles on E10. After two years of running HEFF just under 25,000 miles on fuel averaging 71 percent ethanol, using EPA’s highest ethanol lifecycle GHG estimates and real-world mileage performance, the vehicle emitted approximately 202 grams of CO2 per mile – comparable to 2019 Tesla numbers when adjusted for actual range as opposed to showroom sticker values, and less than half the emissions from the gas version of the Fusion. The eflexfuel converter limited BTU mileage loss to 19.7 percent, and when using that figure versus the EPA original window sticker estimates for the car, and the lowest CI E85 currently available, ACE’s hybrid electric flex fuel vehicle would emit 108 grams of CO2 per mile. While fuel cost was not a primary concern of the HEFF project, the total fuel cost of the E71 used to date has been $2,500 compared to $2,719 for E10 regular gas, a savings of about 9/10ths of a cent per mile driven.



Feed Situation
Matthew Diersen, Risk & Business Management Specialist, South Dakota State University

Beef cattle inventory levels have been expected to continue to remain low. Feed availability has been a limiting factor in recent years. Its attending cost has also limited profits for cow-calf producers. Heading into fall, there are a few signs of changing aggregate conditions that may allow for some expansion to begin. The largest change is probably on the range and pasture side where the latest conditions show much higher percentages in the continental U.S. in good or excellent compared to a year ago. There are also much lower percentages in very poor or poor relative to last year. While conditions are subjective, their consistency and direction would be considered an improvement. The reduction in inventory levels has also meant less demand on the pastures. In general, the conditions are better in the eastern U.S. and worse in the southwest U.S.

The Economic Research Service tracks and builds indexes of grain, high protein, and roughage consuming animal units. The roughage consuming units are dominated by cattle, mainly grazing and then dairy animals. Several years in a row of declining units means less demand for feed, particularly for forage. The grain consuming units are spread across hogs and poultry, then cattle feedlots. That index has not changed much in recent years. The high protein index is dominated by poultry, and it has been increasing slightly in recent years. Thus, pasture demand has gone down, but demand for other feed has been constant when aggregated across other livestock.

The hay situation has improved from a buyer’s perspective. Production is up sharply from a year ago, mitigating a slightly tighter old stocks situation. Thus, supply is larger. Fewer roughage consuming units translates into lower demand. Both combine to push down prices. A major demand source in recent years has come from hay importing countries. In part, high prices seem to have slowed trade, meaning more tons are available in the domestic market. Regionally, the corn crop has a high level of variability. There have been anecdotes of low grain yields expected in different areas, even though the plant height is normal. That suggests a larger than normal amount of corn may be switched to silage production. This can result in substantial tons of forage, albeit at lower energy levels than if the grain production was normal. Distillers’ grains will likely make up any ration needs.

The most obvious impact of changing feed prices will show up in continued changes to the price slide across feeder cattle weight classes and the price spread between steers and heifers. The expected price of corn is much lower than a year ago. This has helped support calf prices and made the slide steeper than a year ago. The spread would also widen, reflecting the better gain of steers over heifers. However, if feed availability improves and costs fall, then cow-calf producers may look favorably on heifers as replacements, which could narrow the spread.



AFBF Presents First Round of Testimony at FMMO Hearing

American Farm Bureau Federation Chief Economist Roger Cryan presented the first round of testimony on behalf of AFBF and its membership today at the ongoing Federal Milk Marketing Order Pricing Formula hearing. AFBF anticipates testifying numerous times during the hearing, which is expected to continue for several weeks.

Cryan provided testimony on the first category of issues outlined by USDA for the hearing, milk composition. AFBF submitted nine proposals for consideration during the hearing, and four were accepted by USDA. Additionally, AFBF largely supports four of the five proposals submitted by the National Milk Producers Federation, and the testimony provided today is in support of NMPF’s proposal to incorporate updated component values into Class III and IV price formulas.

“AFBF supports the updating of the component values in the Class III and IV skim price formulas,” Cryan said in the written testimony. “Adjusting these values will more accurately define the market value of skim milk used in the skim/butterfat markets and in Class I in all markets. In component markets, it will ensure that Class I milk prices reflect at least the national average component value, rather than a low outdated value, which undermines the premium for Class I milk intended by FMMO pricing formulas.”

The hearing, which began on August 23, comes after several calls from AFBF and other dairy groups to begin the process of much-needed reform to Federal Milk Marketing Orders. AFBF brought together representatives from all sectors of the industry last October for a Federal Milk Marketing Order Forum, held in Kansas City, Missouri.

USDA has announced that the hearing will examine milk marketing issues in six subject areas: milk composition; surveyed commodity products; Class III and Class IV formula factors; base Class I skim milk price; Class I and Class II differentials; and a final category for Agricultural Marketing Service changes required to accommodate implementation of other proposals. AFBF has submitted proposals within the surveyed commodity products, base Class I skim milk price and Class I and Class II differentials categories.

AFBF’s proposals are based on years of work by dairy farmer members, policy established through AFBF’s grassroots policy development process, and recommendations developed during the FMMO Forum.



RFA Efforts Seek Fair Treatment for Ethanol as SAF Feedstock

A major farm show and state fair this week in two Midwest states will provide the backdrop for the Renewable Fuels Association’s latest push to see American-made, lower-carbon ethanol supported as a feedstock for sustainable aviation fuel.

A full-page advertisement in Monday’s St. Paul Pioneer Press welcomes USDA Sec. Tom Vilsack to Minnesota—“Ethanol Country.” Sec. Vilsack is scheduled to visit the Minnesota State Fair today.

“Just last month, President Biden said: ‘Mark my words: In the next 20 years, farmers are going to be providing 95% of all the sustainable airline fuel,’” the ad states. “We agree. U.S. farmers and ethanol producers are up to the challenge … and we're ready to deliver low-carbon aviation fuel. But to ensure sustainable aviation fuels really take off, we’ll need your continued help and support. Government standards for sustainable aviation fuel must be guided by sound science and current data, not outdated European schemes that disqualify America’s farmers from fulfilling the President’s vision.”

The Department of Treasury is preparing final guidance related to tax credits for SAF under the Inflation Reduction Act, and RFA and its allies (including airlines, SAF producers, farm groups, members of Congress and university researchers) have argued that the Treasury should recognize the Department of Energy’s GREET model as a viable methodology for the purposes of determining SAF carbon intensity (and, thus, tax credit values), as RFA President and CEO Geoff Cooper spelled out in a blog post last week.

This topic will be front-and-center for the industry this week at the Minnesota State Fair, as well as at the Farm Progress Show in Decatur, Ill., where RFA will be present. Following today’s event in Minnesota, Sec. Vilsack is expected to visit the Farm Progress Show, along with several federal lawmakers and other political officials.



Syngenta Seeds, Sustainable Oils Announce Commercial Agreement to Sell Camelina Seed

Syngenta Seeds, LLC, part of the Syngenta Group, and Sustainable Oils, Inc., a subsidiary of Global Clean Energy Holdings, Inc. (OTCQB:GCEH), have entered into a new agreement to sell Camelina sativa (camelina) seed – an ultra-low carbon oilseed crop that can be used as feedstock for sustainable aviation fuel and renewable fuels, and an ingredient for sustainable animal feed.

The collaboration reflects Syngenta’s strong commitment to enabling farmers to economically adopt regenerative practices around the world. Camelina can be planted on fallow land or land left idle between crop cycles. It is valued for its low water usage, quick maturity, and resilient yields. Camelina protects land like a cover crop providing a range of environmental benefits, including soil health and reduced greenhouse gas emissions.

By offering farmers a new cash crop in high demand, the commercial partnership promotes a more diverse and resilient agricultural system while helping to deliver direct economic benefits to farmers from their otherwise idle or fallow farm acres.

“The collaboration of Syngenta Seeds and Sustainable Oils to sell camelina seed for use in sustainable aviation fuel, renewable diesel, and animal feed production is a significant step forward in promoting regenerative agriculture and renewable energy,” said Eric Boeck, Regional Director North America for Syngenta Seeds. “By supporting farmers and offering a sustainable source of fuel and animal feed, this partnership represents a win-win for producers, the environment, and the rural economy. It embodies our commitment to sustainability and our drive to bring innovative solutions to market.”

“We are very excited to partner with Syngenta Seeds on this collaboration to expand camelina’s growth in the U.S.,” Sustainable Oils President Mike Karst said. “Camelina represents a key feedstock for the production of renewable fuels and sustainable aviation fuel. It is a remarkable crop that protects like a cover crop and pays like a cash crop. We’re proud to be working with Syngenta to bring this opportunity to more farmers, improving our soil health and carbon storage while strengthening our nation’s domestic energy production in the process.”

Camelina seed will be sold through Syngenta’s AgriPro® dealer network in a vertical marketing model. Farmers who buy camelina seed will have a harvest purchase contract. There is no marketing risk for the farmer since there is already an integrated value chain model.

In addition, producing camelina is an attractive option, providing farmers with quick soil cover and improved soil structure, without displacing another crop or requiring new equipment.

Camelina seed will be marketed in select areas of Western Kansas, Colorado, Montana and the Pacific Northwest. It can be included as a spring crop in a wheat-fallow rotation in Montana and the Pacific Northwest, and as a winter crop in Kansas and Colorado.

About Camelina sativa:
    Camelina produces oil seeds that produce a sustainable oil for renewable fuel production.
    Camelina is a drought resilient oilseed that provides quick soil cover and improves soil structure.
    Sustainable Oils’ proprietary camelina varieties and farm-to-fuel pathways can yield renewable diesel with an ultra-low lifecycle Carbon Intensity (CI).
    Renewable diesel and other renewable fuels produced with Sustainable Oils’ patented camelina varieties have the potential to achieve a Net Zero or below CI score.