Friday October 06 Ag News

 Fall 2023 Nebraska Farm Income Update

Nebraska’s farm income is projected near $7.8 billion in 2023, according to a new report from the Rural and Farm Finance Policy Analysis Center (RaFF) at the University of Missouri, produced in conjunction with the Center for Agricultural Profitability at the University of Nebraska-Lincoln https://cap.unl.edu/publications/2023/Fall_2023_NE-farm-income-outlook_final.pdf.

The report, “Fall 2023 Nebraska Farm Income Outlook,” indicates that Nebraska’s stronger 2023 farm income projection is driven largely by higher livestock prices and recovery in ending year inventories and values.

The last report, published in March, projected 2023 farm income in the state at $7.3 billion, up from a projected $7.1 billion in 2022.

“Crop receipts are projected to fall in 2023 due to lower prices, in spite of a rebound in production, while livestock receipts grew on much higher cattle prices in 2023, despite reduced inventories and marketings,” the report said. “Higher production expenses year after year are increasingly challenging profit margins, but for now, strong farm income prospects for 2023 show the strength of the agricultural sector in the state.”

Other highlights from the report include:
    Drought persisted and shifted in Nebraska in 2023 but isn’t projected to have had as big of an effect statewide in 2023 compared to 2022. Yield and production prospects recover modestly in 2023 but not enough to offset lower commodity prices, reducing 2023 crop receipts by nearly 14%, back to a level on par with 2021.
    Despite tighter 2023 inventories, cattle and calf receipts are projected to rise by $2.44 billion. This is largely driven by higher prices as total marketings on a liveweight basis decline nearly 4% from 2022. Prices are projected to peak in 2025 and liveweight basis marketings to increase in 2024 onward.
    Total production expenses are expected to increase by 7.6% in 2023, in comparison to double-digit increases in 2021 and 2022. Despite decreases in fertilizer and fuel expenses, several other expense categories continue to climb, including purchased livestock, taxes, capital consumption, labor, rent, and interest.

The fall 2023 farm income outlook is co-published by the University of Nebraska-Lincoln Center for Agricultural Profitability and RaFF at the University of Missouri, which provides objective policy analysis and informs decision-makers on issues affecting farm and rural finances. The center collaborates with a number of states to develop farm income projections with local expertise.

“Insights developed through our partnership with the Center for Agricultural Profitability help us better understand the uniqueness of farm income factors regionally” RaFF interim director Scott Brown said. “State-level analyses like the Nebraska farm income report can help producers, policymakers and stakeholders alike be equipped with information to make sound decisions that impact agriculture.”



Governor Proclaims Cooperative Month

A proclamation recognizing October 2023 as Cooperative Month was signed by Governor Jim Pillen. This coincides with the annual recognition of October as National Cooperative Month by the United States Department of Agriculture. This year’s national theme is “Owning Our Identity.”

The proclamation signed by the Governor recognizes Nebraska’s farmer-owned cooperatives and rural electric and telephone cooperatives for the important role that they play in Nebraska’s economy.

Rural agricultural cooperatives serve the needs of nearly 60,000 farmers and ranch owners. With an annual payroll of approximately $370 billion, cooperatives directly employ 6,410 Nebraskans in 401 communities across the state. They also create 12,218 jobs annually through their operations, member payments, and investments.

Last year, Nebraska’s agricultural cooperatives made cash patronage and equity redemption payments totaling nearly $97 million to their members and reinvested $200 million in property, plant, and equipment to serve members’ needs. This economic activity arose from total statewide revenues of approximately $8.8 billion.

Nebraska’s rural electric cooperatives serve over 7,000 rural farmers and ranchers with a combined service territory of over 12,000 square miles. Rural telephone cooperatives in Nebraska serve over 9,000 telephone, television and broadband users in Nebraska.

The economic impact of cooperatives benefit all Nebraskans. Nebraska communities were supported by over $23 million of property tax paid by agricultural cooperatives. Nebraska’s farmer-owned cooperatives, governed by their farmer owners, contributed over $2 million to local fire departments, local school and youth organizations, local and statewide FFA and 4-H chapters, and provided numerous scholarships to help Nebraska students continue their education.

Rocky Weber, President and General Counsel to the Nebraska Cooperative Council, stated: “Co-op Month gives Nebraskans the opportunity to learn about the important role Nebraska’s agricultural cooperative system plays in the vitality of our state’s economy. Nebraska’s farmer-owned cooperatives, in addition to providing direct economic benefits to their farmer members, offer excellent employment opportunities throughout rural Nebraska. Farmers support their communities by doing business through their cooperatives, demonstrating the values and principles that make cooperatives a unique business structure. Governor Pillen’s proclamation of October 2023 as Cooperative Month is a welcome acknowledgment of how cooperatives are ingrained in the identity of Nebraska.”



It’s the Season for Controlling Soybean Cyst Nematode
Dylan Mangel - NE Extension Plant Pathologist

Whether you have verified yield loss from soybean cyst nematode (SCN), or not, there is a good chance that the parasite has a presence in some of your fields. SCN is a small roundworm that has slowly spread across the Nebraska production region since being identified in the state in 1986. As of Oct. 1, 2023, SCN has been identified in 59 Nebraska counties.

This pest is the number one yield-limiting biotic agent of soybeans in North America, estimated to cause U.S. producers $1.5 billion a year. The reason this pest is so insidious is because SCN can cause up to 30% yield loss with no significant aboveground symptoms.

The pest is typically introduced into new fields by soil movement on field equipment and is often distributed in pockets throughout the field. For this reason, keep an eye on your yield monitor during harvest to identify unexplained low yielding areas. The most accurate way to verify SCN presence in a field is soil sampling.

October is known as soybean cyst nematode action month, because this is the best time to get out and soil sample for SCN. The end of a soybean season is when SCN levels will be at their highest in the soil. Currently, the Nebraska Soybean Board is sponsoring soybean cyst nematode sample analysis for samples from any Nebraska field. To take advantage of this program, request a shipment of free soil sample bags online or contact your local extension office and submit soil samples using the following procedure.

Sampling Procedure
Collect SCN samples with a 1-inch diameter soil sampling probe or spade. Collect at least 15 to 20 soil cores in a zigzag pattern from across the field. Samples should be collected from the root zone at a depth of about 6-8 inches across about 10 to 20 acres. Break up the collected soil cores and mix them well in a bucket. Place at least 2 cups of the composite soil sample in a bag and submit for SCN testing. A sealable plastic bag works great to prevent samples from drying, or use marked SCN sample bags available at your local Nebraska Extension office or the UNL Plant & Pest Diagnostic Clinic.

While sampling, keep in mind that anything that can move soil can move soybean cyst nematode. For this reason, there are several areas with increased SCN introduction risk. Below is a list of high-risk areas that you should consider sampling.  
    Areas of the field where soybean crops yielded less than expected
    Areas of the field where soybean plants appeared stunted, yellow, and/or defoliated earlier than the rest of the field
    Low spots in fields
    Previously flooded areas of fields
    Field entryways
    Along field borders
    Areas where sudden death syndrome (SDS) or brown stem rot (BSR) developed

Submit samples to:
UNL Plant & Pest Diagnostic Clinic
448 Plant Sciences Hall
P.O. Box 830722
Lincoln, NE 68583-0722
Sample Bag Information to Include:
    Name
    Address
    Email address
    Phone number
    Field name or ID for your reference
    Number of acres the sample represents
    Crop history of the field
    This year’s crop

Management
Once you have identified fields with SCN, there are four broad management recommendations. The first is to rotate between resistant varieties. There are several resistance sources available. The most common are PI88788 and Peaking. Effort should be made to rotate between resistance sources if possible as SCN populations are evolving to overcome the PI88788 resistance source. Rotation will help prolong the life expectancy of current resistance sources while new resistance is being developed.

The second management recommendation is to rotate to a non-host crop. Fortunately, corn, wheat and alfalfa are non-hosts that work well with common Nebraska rotation. While rotation alone will not get rid of SCN, it will help decrease the number of SCN in the soil.

The third management recommendation is to consider the use of a nematode-protectant seed treatment. There are many new seed protectant products entering the market. If you plan to use one, be aware that these should only be used in combination with a resistant soybean variety. A seed treatment should not be considered a replacement for a resistant variety for any pathogen including SCN.

The final recommendation is to continue to monitor SCN populations and levels through testing. As you make management changes, monitoring of SCN levels is important to determine if your management is effective. Sampling should be continued every two to three years to ensure management is effective. This will also provide another opportunity to monitor uninfected fields.

Many producers are experiencing some yield loss to SCN. Actively managing these populations will provide the opportunity to recover this yield. Remember that SCN is often invisible and soil testing is the only way to accurately identify and monitor the pest. If you don’t recall the last time you tested, it is time to test again. Pick up sample bags for free testing from your local extension office.



Join the Iowa Beef Center for the Inaugural Genetic Symposium

The importance of genetics in making decisions for your operation cannot be overstated. A new event offered by the Iowa Beef Center, with Iowa State University Extension and Outreach, will educate producers on the tools available for making genetic improvements for their operation.

The inaugural Genetic Symposium is set for Dec. 18-19 in Ames at the Hansen Agriculture Student Learning Center. Randie Culbertson, cow-calf specialist with ISU Extension and Outreach, planned the program, and has a solid lineup of topics and speakers on a variety of topics all focusing on the bull.

"Understanding the tools available for genetic selection can help you choose the right bull for your operation," she said. "Attendees will learn from the best in the industry, from leading beef cattle geneticists to bull buyers to breeders who apply the tools available to make genetic improvements for their herds. We'll also have demonstrations on carcass ultrasound and bull development."

Patrick Wall, beef specialist with ISU Extension and Outreach, encouraged seedstock producers to attend the symposium.

“Producers can potentially purchase up to half of their genetic base every year during bull buying season, making this decision one of the most crucial choices of the year," he said. "This event is aimed at showing attendees what new genetic tools are available and how to harness them, with the end goal being to lead them into buying the bull their operation needs rather than the kind of bulls they more traditionally find themselves bidding on."

Attendees will hear from a bull stud panel, keynote speakers on bull buying, and a producer panel discussing bull selection from a seedstock perspective. A fun evening activity includes a mock bull sale, after which the drivers for bidding and buying behavior will be broken down and discussed.

Session topics include:
    Current events on genetic prediction.
    Bull fertility.
    Data collection.
    Adaptability and selection.
    Carcass ultrasound demonstration.

The event begins at noon on Dec. 18 and runs through noon on Dec. 19. For more details, visit the symposium website https://www.aep.iastate.edu/genetics/.

For more information, contact Culbertson at rculber@iastate.edu or by phone at 515-294-6304.



Focus on Bull Recovery after Breeding Season

As fall approaches, it is important to keep in mind proper nutrition and care of the herd sires after the breeding season. This is especially true for bulls under two years of age, according to Iowa Beef Center research scientist Garland Dahlke.

“It is common for a young sire to drop one to two body condition scores during the breeding season, so bringing the bull back into condition is the focus in the off season," he said. "The bull is not a feedlot steer so a steady improvement with a moderate weight gain over the next few months is appropriate."

Nutrition is dependent on the age of bulls and the amount of weight lost during the breeding season. High quality forage alone or a lower quality forage with some grain supplementation can work in re-establishing body weight.

For effective management, group bulls with similar nutritional needs during the winter. This also includes adequate bunk or feeder space, so the submissive bulls have a fighting chance.

Typically, mature bulls in fairly good condition can be managed on an all-roughage diet without supplementation during the winter months, Dahlke said. Hay quality should have 8% to 10% crude protein, and be fed at 2% of their body weight.

For young bulls, rations should be formulated to gain half a pound to 2 pounds per day based on age, size and desired weight gain. Young bulls typically lose 50-200 pounds during their first breeding season, so prioritizing protein and energy in their diet will promote growth and subsequent reproductive health.

Young bulls fed 3-6 pounds of grain in the winter, roughage at 2% of body weight, and total diet protein content of 10-11% often reach the target rate of gain. For bulls used in both spring and fall calving herds, young bulls typically need to gain more with a target of 2 to 2.5 pounds per day to recover from weight loss.

Iowa State University extension beef specialist Chris Clark, who also is a veterinarian, said post-breeding season can be a good time to do an overall health evaluation.

"Hopefully producers have been checking regularly throughout the breeding season and catching things like injuries, lameness, pinkeye and other diseases," he said. "There shouldn’t be any big surprises when bulls are pulled from the cows.”

Depending on the processing schedule, this may be a good time to vaccinate and treat for parasites, Clark said. Efficacy of external parasite control often has waned by the end of breeding season and bulls may have picked up internal parasites while grazing, so it may be beneficial to apply some kind of antiparasitic treatment.

Herd biosecurity is another top health priority.

“It may be worthwhile to test for things like trichomonas," Clark said. "In a relatively closed herd, this probably isn’t a big concern, but if the bulls have had contact with neighboring herds or if new open cows were added to the herd prior to or during the breeding season, testing is wise."

IBC extension cow-calf specialist Randie Culbertson said focusing on your older bull is helpful now.

“This is also a good time to evaluate your older bull's performance through last year’s calf crop," she said. "Did his calves perform as you expected? Will you consider keeping his daughters as replacements? And the bigger question is, did his calves have any calving issues?

“A bull's value is in the performance of his calves, and if his calves are not performing the way you would want, it may be time to consider replacing that bull,” Culbertson said.



October is good time for ventilation inspection and maintenance

Properly functioning ventilation systems are vital to today’s pork production facilities, and following a regular process for maintaining their operation can pay big economic dividends. Iowa State University extension agriculture and biosystems engineer Brett Ramirez said as the weather starts to get colder, it’s critical to get barns ready for winter to help reduce heating costs and provide a good environment for the pigs.

“Routine equipment inspections and maintenance will pay dividends in long run, not only by extending the life of the equipment, but also creating a good environment inside the barn,” Ramirez said. “In late fall, producers can have a lot of things to do, and a checklist helps keep things organized inside the barn.”

A newly released winter ventilation checklist publication from Iowa Pork Industry Center is a great tool for this seasonal job. Look for Winter Ventllation Checklist AE3553B https://store.extension.iastate.edu/Product/16840, available as a free download from the ISU Extension story.

“Some of the tasks and checkpoints listed might not be intuitive for everyone, so having a detailed list with place for notes is an excellent guide,” he said. “Laminating a printed copy to keep in the barn also allows a person to mark what they found, and then easily clear it for the next year."

Ramirez cautioned producers that because each barn, each system and other contributing factors may be different, not all recommendations listed might be appropriate for every location.



Record Value for Mexico Fuels August Pork Exports; Modest Rebound for Beef

August exports of U.S. pork were steady year-over-year, led by another tremendous performance in Mexico, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were well below the large totals posted in August 2022 but showed improvement over July results.

August pork export highlights led by value record in Mexico
August pork exports totaled 226,519 metric tons (mt), steady with last year, while export value fell 1.5% to $649.5 million. Exports to leading market Mexico remained on a record pace and set a value record in August at $211.7 million. Exports also trended higher year-over-year to Japan, Canada, Central America, the Dominican Republic, Oceania and Taiwan.

Through the first eight months of 2023, pork exports were 11% above last year’s pace at 1.91 million mt, valued at $5.32 billion (up 9%).

“I cannot say enough about Mexico’s remarkable demand for U.S. pork and the critical revenue these exports drive for the U.S. industry,” said USMEF President and CEO Dan Halstrom. “But the story of this year’s export growth extends well beyond Mexico, as demand is climbing in other Western Hemisphere destinations and the U.S. industry is also achieving gains in several Asia-Pacific markets.”

August beef exports below last year, but demand robust in Latin America
August beef exports totaled 109,000 mt, down 19% from last year – when export volume was the second highest on record – but a 6% increase over July. Export value was $883.9 million, down 15% year-over-year but 9% above July. Exports to Mexico continued to trend higher in August, shipments to Guatemala were the second highest on record and exports to South America were the largest in more than a year. August exports also increased year-over-year to Africa and the Dominican Republic. Exports to leading markets South Korea and Japan were well below last year, but improved over July.

For January through August, beef exports trailed last year’s record pace by 12% in volume (881,343 mt) and 19% in value ($6.69 billion).

“Beef exports certainly face significant headwinds, especially in our large Asian markets where foodservice has been slow to recover and consumer confidence is low due to the impact of rising prices and the strong U.S. dollar,” Halstrom explained. “But exports to South Korea and Japan did bounce back to some degree after a difficult July. Mexico continues to be a major bright spot for U.S. beef, and exports to other Western Hemisphere partners in Central and South America and the Dominican Republic also gained momentum in August.”

August lamb exports trend lower
August exports of U.S. lamb muscle cuts fell 14% from a year ago to 107 mt – the lowest volume this year. Export value was down 18% to $678,000. Through August, lamb muscle cut exports were down 3% to 1,371 mt, valued at just under $8 million (down 7%). January-August exports increased to the Netherlands Antilles, Panama and Canada but were lower to the Dominican Republic and the Bahamas. Shipments to Mexico were up slightly in volume but value trended lower.



DMC Margin Gains Almost $3 in August

The August Dairy Margin Coverage (DMC) margin was up by $2.94/cwt from July to reach $6.46/cwt in August, 2023’s highest margin since January and the margin’s first monthly increase this year.

As is often the case whenever there is a large monthly margin movement, the milk price was the main driver of the change. The U.S. average all-milk price added $2.30/cwt to July’s level to reach $19.70/cwt in August, the year’s first monthly milk price increase. August feed costs fell $0.64/cwt, mostly due to a drop in the price of corn, although soybean meal and premium alfalfa prices were down slightly as well.

The August margin jump in the margin was the first of several that futures markets expect will raise the margin above the maximum $9.50/cwt DMC Tier 1 coverage level. So far this year, the program has made substantial payments to that coverage level every month.



September CWT-Assisted Dairy Export Sales Nearly 10.4 Million Pounds

Cooperatives Working Together (CWT) member cooperatives secured 30 contracts in September, adding 2.4 million pounds of American-type cheeses, 99,000 pounds of butter, 719,000 pounds of cream cheese and 7.1 million pounds of whole milk powder to CWT-assisted sales in 2023. In milk equivalent, this is equal to 82.2 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, South America and Middle East-North Africa, and will be shipped from September 2023 through March 2024.

CWT-assisted 2023 dairy product sales contracts year-to-date total 36.3 million pounds of American-type cheese, 908,000 pounds of butter, 26,000 pounds of anhydrous milkfat, 6.9 million pounds of cream cheese and 38.6 million pounds of whole milk powder. This brings the total milk equivalent for the year to 692.6 million pounds on a milkfat basis.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.