Wednesday November 22 Ag News

 Ag Exports Near $10 Billion
Nebraska Farm Bureau

In a year when the value of U.S. agricultural exports set a record, it is not surprising 2022 was also a record-setting one for exports from Nebraska. Nebraska’s agricultural exports were $9.97 billion, $763 million or 8 percent greater than 2021. It marks the third consecutive year of record-setting exports. Since 2019, Nebraska’s overseas sales have grown $3.7 billion, or 60 percent. Nebraska again was the fifth-largest agricultural exporting state trailing only California, Iowa, Illinois, and Minnesota. Nebraska topped the nation in exports of beef at $1.86 billion, was the second-largest exporter of hides and skins ($141 million), the third-largest exporter of corn ($2.25 billion), feed ($1.28 billion), and processed grain products ($442 million), and the fifth-largest exporter of soybeans ($2.3 billion), soybean meal ($417 million), and vegetable oil ($277 million).

Soybeans, corn, and beef remained solidly entrenched as Nebraska’s top agricultural exports, accounting for nearly two-thirds of total exports. Soybeans were the top export, up 23 percent from the prior year, tracking U.S. exports which were up 26 percent in value. The USDA says that the export value of soybeans “was mostly driven by growth in prices, but volumes also rose significantly on strong protein demand in most top export markets.” China was the largest soybean purchaser, but growth was also seen from Mexico, the European Union, Egypt, and Japan. Nebraska’s corn exports were off 4 percent, but they still finished as the second highest on record. Like soybeans, China was the largest buyer followed by Mexico and Japan. Exports to these three countries accounted for 71 percent of total U.S. corn exports. Finally, the value of Nebraska beef exports rose 13 percent, also setting a record. The USDA attributes last year’s growth in beef trade to robust demand from East Asian countries. Purchases by South Korea, Japan, and China accounted for 62 percent of total U.S. exports.

U.S. agricultural exports in 2023, so far, are trailing last year’s record-setting levels. A stronger dollar, a sluggish global economy, competition, and world geopolitics have been headwinds to continued growth. U.S. agricultural exports were expected to decline in 2023. The decline, though, has been more severe than what most people expected. Nebraska’s string of years of record-setting exports will likely end at three.



INTERPRETING FORAGE QUALITY OF GRASS HAY
– Ben Beckman, NE Extension Educator

Have you ever tested the quality of your grass hay and been disappointed at the low relative feed value?  Well, maybe your worry is unnecessary.

Producers testing prairie, cane, or other grass hay can be confused when the hay itself looks really good but when a lab tested it, the relative feed value, or RFV, was surprisingly low. Numbers came back in the 70s or 80s.  Is something wrong with the hay?

Actually, things may be just fine.  You see, relative feed value was initially developed primarily to test legumes like alfalfa for the dairy industry.  It used two types of fiber, the ADF and the NDF to calculate the RFV score.  The NDF helped estimate intake and ADF estimated energy.

However, this system assumed all fiber had the same digestibility.  We know that is not true, and it especially misrepresents the forage quality of grasses.  Grasses have more fiber than legumes but grass fiber usually is more digestible than legume fiber.  So, grass hay frequently is ranked lower than it should be using relative feed value.

Fortunately, researchers quickly became aware of this issue and developed another test that better measures digestible fiber, thus doing a better job of estimating forage quality of grasses.  This test is called relative forage quality, or RFQ for short.

It’s also good to note that neither RFV nor RFQ are very useful in planning animal rations, they are best used to benchmark your production, comparing hay at market, and as a quick identification to allocate hay to different types of animals.

So, the next time your hay test comes back and the RFV seems a bit off, focus on RFQ instead.



NDEE announces schedule of stakeholder workgroup sessions for the Climate Pollution Reduction Planning Program

The Nebraska Department of Environment and Energy (NDEE) is continuing public outreach for Nebraska’s Climate Pollution Reduction Planning Program by holding a series of stakeholder working group sessions. These sessions will consider greenhouse gas emission reduction measures in various sectors of the economy.

The working group sessions will be conducted online via Zoom to facilitate participation across the state. Interested parties should visit the program web page (http://dee.ne.gov/ndeqprog.nsf/onweb/cprg) to register for individual sessions and to download a stakeholder information packet.

Two sessions are planned for each working group. The schedule of sessions is as follows:

Transportation
Tuesday, Nov. 28 from 2 to 3:30 p.m.
Wednesday, Dec. 13 from 10 to 11:30 a.m.

Agriculture / Natural & Working Lands
Thursday, Nov. 30 from 10 to 11:30 a.m.
Thursday, Dec. 14 from 10 to 11:30 a.m.

Industry / Waste & Wastewater
Tuesday, Dec. 5 from 2 to 3:30 p.m.
Wednesday, Dec. 13 from 2 to 3:30 p.m.

Energy Production
Thursday, Dec. 7 from 10 to 11:30 a.m.
Monday, Dec. 18 from 2 to 3:30 p.m.

Buildings/Housing/Communities
Wednesday, Dec. 6 from 10 to 11:30 a.m.
Tuesday, Dec. 19 from 10 to 11:30 a.m.

The online stakeholder workgroup sessions will be followed in January by in-person public meetings at several locations around the state. The in-person meeting schedule will be posted on the program web page at a later date.

For further information about the stakeholder working group sessions and the program contact NDEE via email at: NDEE.climatepollution@nebraska.gov.

The Climate Pollution Reduction Planning Program was created through the Environmental Protection Agency’s Climate Pollution Reduction Grant. NDEE received $3 million through this grant to develop and implement a Priority Climate Action Plan, due by March 1, 2024, and a Comprehensive Climate Action Plan, due in late summer 2025. Completing these action plans makes Nebraska eligible to receive competitive implementation grants to carry actions detailed in the plans.



Nebraska Beef Council December Board Meeting

The Nebraska Beef Council Board of Directors will meet at the NBC office in Kearney, NE located at 1319 Central Ave. on Friday, December 8th, 2023, beginning at 10:00 a.m. CST. The NBC Board of Directors will review AR's evaluations for FY-2022-2023.  For more information, please contact Pam Esslinger at pam@nebeef.org  



Pillen Makes Case for Growing Biobased Economy at National Convention

Governor Jim Pillen is making the case for growing a biobased economy in Nebraska. He delivered remarks and participated in multiple panel discussions during the Alternative Fuels and Chemical Coalition (AFCC) Global Biobased Economy Conference in Washington D.C. This annual event brings together industry leaders, policymakers, researchers, and innovators to explore the latest developments, challenges, and opportunities in this rapidly growing sector.

Sharing his vision, Gov. Pillen emphasized the state’s ability to feed the world, while prioritizing sustainable farming practices and implementing innovative, science-based technologies that monitor progress in ag production.

“The biobased economy is gigantic for the future. It’s our Silicon Valley,” said Gov. Pillen. “Sustainable farming that creates products with lower carbon scores is good business. It’s something that Nebraska farmers have been doing for generations. Now, we need the data that confirms those practices and allows farmers to keep making improvements, so they get the credit they deserve – improving their bottom line.”

At the conference, Gov. Pillen expressed his commitment to expanding the biomanufacturing industry in Nebraska, which in turn, will create career opportunities for future Nebraskans. He encouraged all manufactures to consider Nebraska for future projects, emphasizing the state’s abundant natural resources and collaborative atmosphere for supporting those investments.

“We will take advantage of the endless opportunities that the new biobased economy holds for our state,” said Governor Pillen. “The time is now for Nebraska to be the lead in growing this industry for our planet, our country, and for our state.

Expansion efforts are supported through Executive Order 14081, signed by President Biden, which builds on the policies enacted by presidents Obama and Trump aimed at growing a U.S. bioeconomy.

These actions mirror President Bush’s renewable fuels policies he enacted during his 2007 State of the Union Address. The action President Bush took transformed Nebraska agriculture overnight, by increasing crop production, doubling cattle on feed, all while utilizing the byproducts of ethanol production.

“We will lead the way again through Executive Order 14081 by enhancing the plant-based manufacturing industry of Nebraska with our grains and feedstocks,” said Gov. Pillen. “Together Nebraska farmers, ranchers, and business owners will leverage this opportunity to ensure Nebraska is the frontrunner in the new bioeconomy.”

The Alternative Fuels and Chemical Coalition (AFCC) Global Biobased Economy Conference was in Washington D.C. Nov. 12 - 14.



USDA NASS TO COLLECT 2023 CROP PRODUCTION AND STOCKS DATA

As the 2023 growing season comes to an end, the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will contact producers nationwide to gather final year-end crop production numbers and the amount of grain and oilseeds stored on their farms. At the same time, NASS will survey grain facility operators to determine year-end grain and oilseed stocks stored in commercial facilities.

“These surveys are the largest and most important year-end surveys conducted by NASS,” explained NASS’s Northern Plains Director Nicholas Streff. “They are the basis for the official USDA estimates of production and harvested acres of all major agricultural commodities in the United States as well as grain and oilseed supplies. Data from the survey will benefit farmers and processors by providing timely and accurate information to help them make crucial year-end business decisions and begin planning for the next growing and marketing season.”

“Responses to the survey will be used in calculating county-level yields which have a direct impact on farmers around the State. USDA’s Farm Service Agency may use the data in administering producer programs and in determining disaster assistance program calculations,” said Streff. “NASS cannot publish a county yield unless it receives enough reports from producers in that county to make a statistically defensible estimate. So, it is very important that producers respond to this survey. In 2022, NASS was unable to publish several large producing counties due to an insufficient number of responses.”

“As required by Federal law, all responses are completely confidential,” Streff continued. “We safeguard the privacy of all respondents, ensuring that no individual operation or producer can be identified.

Individual responses are also exempt from the Freedom of Information Act.” Survey results will be published in several reports, including the Crop Production Annual Summary and the quarterly Grain Stocks report, both to be released on January 12. These and all NASS reports are available online at www.nass.usda.gov. For more information call the NASS Nebraska Field  Office at (800) 582-6443.



NORTHERN PLAINS FARM LABOR

In the Northern Plains Region (Kansas, Nebraska, North Dakota, and South Dakota) there were 37,000 workers hired directly by farm operators on farms and ranches during the week of July 9-15, 2023, down 3% from the July 2022 reference week, according to USDA's National Agricultural Statistics Service. Workers numbered 43,000 during the week of October 8-14, 2023, down 4% from the October 2022 reference week.

Farm operators paid their hired workers an average wage of $18.68 per hour during the July 2023 reference week, up 6% from the July 2022 reference week. Field workers received an average of $18.87 per hour, up $1.30. Livestock workers earned $17.44 per hour, up $0.59. The field and livestock worker combined wage rate at $18.18, was up $0.93 from the 2022 reference week. Hired laborers worked an average of 45.2 hours during the July 2023 reference week, compared with 44.4 hours worked during the July 2022 reference week.

Farm operators paid their hired workers an average wage of $19.37 per hour during the October 2023 reference week, up 6% from the October 2022 reference week. Field workers received an average of $19.88 per hour, up $1.42. Livestock workers earned $17.30 per hour, up $0.42 from a year earlier. The field and livestock worker combined wage rate, at $18.89, was up $1.01 from the October 2022 reference week. Hired laborers worked an average of 47.9 hours during the October 2023 reference week, compared with 45.9 hours worked during the October 2022 reference week.



Cornbelt II Ag Labor Report

There were 24,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri) during the reference week of July 9-15, 2023, according to the latest USDA, National Agricultural Statistics Service Farm Labor report. Farm operators paid their hired workers an average wage rate of $17.85 per hour, 25 cents below July 2022. The number of hours worked averaged 40.1 for hired workers during the reference week, compared with 39.3 hours in July 2022.

During the reference week of October 8-14, 2023, there were 32,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri). Farm operators paid their hired workers an average wage rate of $19.05 per hour during the October 2023 reference week, 86 cents above October 2022. The number of hours worked averaged 42.2 for hired workers during the reference week, compared with 40.6 hours in October 2022.



October Hired Workers Down 1 Percent; Gross Wage Rate Increased 6 Percent from Previous Year

There were 776,000 workers hired directly by farm operators on the Nation's farms and ranches during the week of October 8-14, 2023, down 1 percent from the October 2022 reference week. Workers hired directly by farm operators numbered 781,000 during the week of July 9-15, 2023, down 2 percent from the July 2022 reference week.

Farm operators paid their hired workers an average gross wage of $18.81 per hour during the October 2023 reference week, up 6 percent from the October 2022 reference week. Field workers received an average of $18.24 per hour, up 7 percent. Livestock workers earned $17.19 per hour, up 4 percent. The field and livestock worker combined gross wage rate, at $17.95 per hour, was up 6 percent from the 2022 reference week. Hired laborers worked an average of 41.7 hours during the October 2023 reference week, down slightly from the hours worked during the October 2022 reference week.

Farm operators paid their hired workers an average gross wage of $18.61 per hour during the July 2023 reference week, up 6 percent from the July 2022 reference week. Field workers received an average of $18.08 per hour, up 8 percent, while livestock workers earned $16.95 per hour, up 2 percent from a year earlier. The field and livestock worker combined gross wage rate, at $17.76 per hour, was up 6 percent from the July 2022 reference week. Hired laborers worked an average of 41.2 hours during the July 2023 reference week, up slightly from the hours worked during the July 2022 reference week.

The 2023 all hired worker annual average gross wage rate was $18.53 per hour, up 6 percent from the 2022 annual average gross wage rate. The 2023 field worker annual average gross wage rate was $17.88 per hour, up 7 percent from the 2022 annual average. The 2023 livestock worker annual average gross wage rate was $16.85 per hour. The 2023 annual average combined gross wage for field and livestock workers was $17.55, up 6 percent from the 2022 annual average of $16.62 per hour.



Weekly Ethanol Production for 11/17/2023

According to EIA data analyzed by the Renewable Fuels Association for the week ending November 17, ethanol production slowed 2.3% to a 6-week low of 1.023 million b/d, equivalent to 42.97 million gallons daily. Output was 1.7% less than the same week last year and 2.0% below the five-year average for the week. The four-week average ethanol production rate decreased 0.4% to 1.041 million b/d, which is equivalent to an annualized rate of 15.96 billion gallons (bg).

Ethanol stocks grew 3.3% to a 7-week high of 21.7 million barrels. Stocks were 5.2% less than the same week last year but 1.1% above the five-year average. Inventories built across all regions except the East Coast (PADD 1) and Rocky Mountains (PADD 4).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, slumped 5.2% to 8.48 million b/d (130.00 bg annualized)—the smallest weekly volume since September. Demand was 1.8% more than a year ago yet 4.0% below the five-year average.

Refiner/blender net inputs of ethanol declined 1.3% to 891,000 b/d, equivalent to 13.66 bg annualized. Still, net inputs were 0.6% more than a year ago and 0.4% above the five-year average.

Ethanol exports were estimated at 78,000 b/d (3.3 million gallons/day), which is 8.2% less than the prior week. There were zero imports of ethanol recorded for the ninth consecutive week.



USDA October 2023 Livestock Slaughter

Commercial red meat production for the United States totaled 4.77 billion pounds in October, up slightly from the 4.76 billion pounds produced in October 2022.

Beef production, at 2.34 billion pounds, was 3 percent below the previous year. Cattle slaughter totaled 2.83 million head, down 3 percent from October 2022. The average live weight was down 1 pound from the previous year, at 1,374 pounds.

Veal production totaled 4.2 million pounds, 8 percent below October a year ago. Calf slaughter totaled 23,100 head, down 24 percent from October 2022. The average live weight was up 49 pounds from last year, at 308 pounds.

Pork production totaled 2.42 billion pounds, up 3 percent from the previous year. Hog slaughter totaled 11.4 million head, up 5 percent from October 2022. The average live weight was down 3 pounds from the previous year, at 285 pounds.

Lamb and mutton production, at 11.3 million pounds, was up 7 percent from October 2022. Sheep slaughter totaled 193,500 head, 14 percent above last year. The average live weight was 115 pounds, down 7 pounds from October a year ago.

By State   -   million lbs - % Oct '22
Nebraska ...:     687.8     -       99       
Iowa ..........:     780.5     -      104       
Kansas .......:     500.3     -       97       

January to October 2023 commercial red meat production was 45.2 billion pounds, down 2 percent from 2022. Accumulated beef production was down 5 percent from last year, veal was down 11 percent, pork was up 1 percent from last year, and lamb and mutton production was down 2 percent.



USDA October 2023 Cold Storage Highlights

Total red meat supplies in freezers on October 31, 2023 were down slightly from the previous month and down 14 percent from last year. Total pounds of beef in freezers were up 6 percent from the previous month but down 13 percent from last year. Frozen pork supplies were down 6 percent from the previous month and down 14 percent from last year. Stocks of pork bellies were down 6 percent from last month and down 31 percent from last year.

Total frozen poultry supplies on October 31, 2023 were down 6 percent from the previous month but up slightly from a year ago. Total stocks of chicken were up 3 percent from the previous month but down 4 percent from last year. Total pounds of turkey in freezers were down 24 percent from last month but up 13 percent from October 31, 2022.

Total natural cheese stocks in refrigerated warehouses on October 31, 2023 were down 1 percent from the previous month but up 1 percent from October 31, 2022. Butter stocks were down 11 percent from last month and down 1 percent from a year ago.

Total frozen fruit stocks on October 31, 2023 were up 22 percent from last month and up 19 percent from a year ago. Total frozen vegetable stocks were up 5 percent from last month and up 1 percent from a year ago.



How China’s African Swine Fever Outbreaks Affected Global Pork Markets
New report from USDA’s Economic Research Service

After moving from Europe to China in 2018, the African swine fever (ASF) virus spread throughout China in less than a year after the country’s first outbreaks were reported, dramatically reducing China’s pork supplies.

A report issued today by USDA’s Economic Research Service, How China’s African Swine Fever Outbreaks Affected Global Pork Markets, investigates the impact on China’s pork market and how China’s increased demand for imported pork affected markets for pork-exporting countries.

Here are a few key points from the report:
    China’s swine herd experienced a 30-month cycle of decline and recovery, as the country lost an estimated 27.9 million metric tons of its pork output.
    Pork prices in China more than doubled despite a surge of pork exports from the European Union, United States, Canada, Brazil, and other countries.

For more information, please refer to the full report https://www.ers.usda.gov/webdocs/publications/107925/err-326.pdf?v=2216.5.