Thrusday November 30 Ag News

Five Students Take State in Conservation Poster Contest

Rivers, lakes and wildlife were artfully crafted by young Nebraskans throughout the year turning blank paper into award-winning posters.

Nebraska’s Natural Resources Districts (NRDs) recognize students from kindergarten to 12th grade, who competed in the annual “One Water” Conservation Poster Contest. Students winning in the state competition include:
    K-1: Carston Rolf, Dodge, Nebraska (Lower Elkhorn NRD)
    2-3: Colton Pruest, Dodge, Nebraska (Lower Elkhorn NRD)
    4-6: Connor Pojar, Scribner, Nebraska (Lower Elkhorn NRD)
    7-9: Halley Langenberg, Norfolk, Nebraska (Lower Elkhorn NRD)
    10-12: Sophia Weyhrich, Norfolk, Nebraska (Lower Elkhorn NRD)

Each NRD selects a winner from their district contest to compete in the state competition. The state winners take home a $25 prize and will go on to compete in the National Association of Conservation Districts (NACD) poster contest for a chance to win $200. National winners are selected at the NACD annual conference in February.

Typically, NRDs notify area teachers about the contest and allow them to introduce it in the classroom. Individual students can participate outside of the classroom by submitting their artwork to their local Natural Resources District. The 2024 poster theme is “May the Forest be with You Always.” For more information on the poster contest, visit the NARD website or contact Megan Grimes at mgrimes@nrdnet.org.



Flood Secures Line Speed Trial Extension for Pork Producers, Calls for Permanent Solution

Today, U.S. Congressman Mike Flood issued a statement following news the U.S. Department of Agriculture (USDA) extended the Time-Limited Trial for New Swine Inspection System for six pork processing plants.  

“I’m pleased the USDA extended the Time-Limited Trial for the time being, but pork processors across the country need more certainty beyond this three-month extension,” Rep. Flood said. “The trial has been very helpful because it’s shown increased line speeds don’t degrade workplace safety. The USDA needs to help processors operate at full capacity, so we can help deliver the food we need to feed America and the world.”  

Previously, Congressman Flood joined his colleagues to urge the USDA to extend the Time-Limited Trial for pork processing plants to run at increased line speeds in the New Swine Inspection System (NSIS.) The NSIS temporarily waived line speed limits at six establishments to collect data that would be used to evaluate the impact of increased line speed on workers.

Two of the participating establishments in the Time-Limited Trial are located in Nebraska’s First Congressional District.



2024 local food and healthy farms conference - registrations open

Registration is now open for the much-anticipated 2024 Local Food and Healthy Farms Conference. This event is set to take place from January 25-27 at the River’s Edge Conference Center in Columbus, Nebraska. Organized by the Nebraska Sustainable Ag Society, this conference is open to everyone interested in sustainable farming and local food systems.

Detailed information and registration can be found here https://www.sustainablenebraska.org/2024-conference-local-foods-healthy-farms.

The annual event, in collaboration with the University of Nebraska Extension and Nebraska specialty crop growers, aims to provide a dynamic platform for discussions on farming and local food systems in Nebraska. It encourages participants to learn, network, and collaborate for a resilient food future over forty years.

The conference will feature over 30 sessions covering a wide range of topics including farm financial planning, farm skills, field crops, livestock management, farm and food policy, urban agriculture, local food access, and much more. This year also introduces new pre-conference workshops on Thursday, focusing on regional food systems, communication, and farm/ranch resources.

Keynote speakers for the conference include Nancy Williams of No More Empty Pots in Omaha, and Michael Foley, co-owner of Green Uprising Farm and author of 'Farming for the Long Haul'. Their insights are expected to enrich discussions on regional food security and sustainable farming practices.

Networking opportunities abound at the conference, including a Friday evening reception and an exhibit hall where attendees can connect with farmers, researchers, sponsors, service agencies, and consumers.

The registration fee is $80 per day or $150 for both days, which includes meals and access to all events. Scholarships are available, and early registration is recommended by January 13, 2024.

The conference is supported by sponsors like Rodale Institute, Center for Rural Affairs, and others, reflecting a strong community commitment to sustainable agriculture and local food systems. This event is a crucial platform for those interested in the future of sustainable farming and local food initiatives.



USDA SURVEYING CATTLE OPERATIONS

In January, the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will survey about 41,000 cattle operations nationwide to provide an up-to-date measure of U.S. cattle inventories.

“This information helps producers make timely, informed business decisions and plan for herd expansion or reduction. It also helps packers and government leaders evaluate expected slaughter volume for future months and determine potential supplies for export,” said Upper Midwest Regional Director Greg Thessen. “Obtaining the current count of cattle will serve as an important decision-making tool for the entire agriculture industry.”

During the first two weeks of January, Iowa producers will have the opportunity to report their beef and dairy cattle inventories, calf crop, death loss and cattle on feed information. To make it as convenient as possible for producers to participate in the survey, NASS offers the option of responding via the Internet, telephone, or mail.

Survey respondents are encouraged to use the new Respondent Portal at agcounts.usda.gov. On the portal, they can complete their surveys, track upcoming surveys, access data visualizations and reports of interest, link to other USDA agencies, and more. NASS safeguards the privacy of all respondents. The information provided by survey respondents will be used for statistical purposes only. In accordance with federal law, responses will be kept confidential and will not be disclosed in identifiable form.

Survey results will be published in the Cattle report to be released on January 31, 2024. These and all NASS reports are available online www.nass.usda.gov/Publications. For more information, call the NASS Upper Midwest Regional Field Office at (800) 772-0825.



EPA Fines Iowa Ethanol Producer for Alleged Clean Air Act Violations  

The U.S. Environmental Protection Agency (EPA) will collect a $89,860 penalty from POET Biorefining – Menlo LLC, a bioethanol producer in Menlo, Iowa, to resolve alleged violations of the federal Clean Air Act.

The company is a subsidiary of POET LLC, the world’s largest producer of biofuel. According to EPA, the Menlo facility is a “major air emission source” that failed to comply with federally enforceable permit provisions intended to limit harmful releases of air pollution.

After reviewing POET Biorefining facility records in 2022, EPA alleged that the company failed to properly operate the facility’s scrubber, which is designed to limit releases of volatile organic compounds and hazardous air pollutants. In response to EPA’s findings, the company corrected the alleged violations and implemented procedures to ensure that the scrubber operates within required parameters.

According to EPA, POET Biorefining creates biofuels through fermentation of corn sugars, which can emit volatile organic compounds and hazardous air pollutants. Volatile organic compounds are compounds that have a high vapor pressure and easily evaporate. Direct or long-term exposure to VOCs may result in eye, nose and throat irritation, headaches, nausea, organ or central nervous system damage, or cancer. Hazardous air pollutants are those known or suspected to cause cancer or other serious health impacts, such as reproductive effects, birth defects, or adverse environmental effects.

Reducing air pollution from the largest sources of emissions is a top priority for EPA.



Crop Insurance Discount Program Sign-Up Begins December 1

Iowa Secretary of Agriculture Mike Naig announced today that the sign-up period for the Crop Insurance Discount Program will begin on Friday, December 1 and will close on Friday, January 26, 2024.

To sign-up to participate, visit Apply.CleanWaterIowa.org.

Offered by the Iowa Department of Agriculture and Land Stewardship, the program provides farmers and landowners who plant fall cover crops the opportunity to apply for a $5 per acre discount on their spring crop insurance premiums.

“Cover crop utilization in Iowa continues to rise because of innovative incentives like the Crop Insurance Discount Program. Iowa is a leader in conservation innovation and this successful program, which was first developed and launched in Iowa, has become a model in other states and at the national level,” said Secretary Naig. “This incentive can help defray some of the cover crop seeding costs on more acres, so we invite farmers and landowners to get their eligible acres signed up before January 26. As cover crops offer water quality and soil health improvements, valuable forage for livestock and many more agronomic benefits, we want to significantly increase the number of Iowa cover crop acres in the years ahead.”

Now in its seventh year, the Crop Insurance Discount Program has enrolled nearly 2,000 farmers who have seeded more than 1 million acres of cover crops to date.  To qualify for the program, the cover crop acres cannot be enrolled in other state or United States Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS) cost share programs.

Program Details
The Crop Insurance Discount Program is jointly administered by the Iowa Department of Agriculture and Land Stewardship and United States Department of Agriculture (USDA) Risk Management Agency (RMA). Iowa’s program has served as a model and has been replicated by the USDA as well as Wisconsin, Illinois and Indiana. To qualify for the Crop Insurance Discount Program, the cover crop acres cannot be enrolled in other state or federal cost share programs. Farmers should visit their local USDA Service Center to learn about other cost share funding available to support the implementation of conservation practices. Some insurance policies, such as Whole-Farm Revenue Protection or those covered through written agreements, may be excluded. Participants must follow all existing farming practices required by their respective policy and work with their insurance agencies to maintain eligibility.



Explore How the Growth of Soy Crush in United States Will Impact Agriculture and Biofuels at 2024 Iowa Renewable Fuels Summit

How does the growth of U.S. soy crush impact biofuels, soybeans, corn and livestock? Receive insight from a panel of experts at the 2024 Iowa Renewable Fuels Summit on January 11, 2024. Attendance is free and open to the public.

The Soybeans: Crushing It panel will feature:
·      Alan Weber, Founding Partner of MARC-IV
·      Ryan Ruikka, Biofuels Energy Analyst at The ProExporter Network
·      Kevin Clausen, Principal of John Stewart & Associates Inc.
·      Erik Lightner, Chief Executive Officer of Platinum Crush LLC
·      Scott Tilton, Food Animal Nutritionist and Technical Sales Advisor at The Andersons Inc.

“The unprecedented increase in U.S. soybean crush raises many questions about how it will impact biofuels production, agricultural export patterns, livestock rations, and much more.” said Iowa Renewable Fuels Association Marketing Director Lisa Coffelt. “We have brought together a world-class group of experts to discuss these questions so farmers, biofuels producers, livestock producers, and everyone connected can chart an informed course for the future.”

Make sure to attend the 2024 Iowa Renewable Fuels Summit, where attendees will “Chart Our Course” for the future of biofuels. The summit will be held on January 11, 2024 at the Prairie Meadows Event Center in Altoona, Iowa. Attendance is free and open to the public, but registration is required. To learn more and to register, visit IowaRenewableFuelsSummit.org.



ICGA Thanks Attorney General Bird for Support of Year-Round E15

Year-Round E15 gives consumers savings at the pump and creates an increased demand for corn grind across the state. That’s why the Iowa Corn Growers Association (ICGA) applauds Iowa Attorney General Brenna Bird for her continuous efforts in keeping the U.S. Environmental Protection Agency (EPA) accountable for their failure to respond to the opt-out request filed by Iowa Governor Kim Reyolds and six other midwestern states earlier this year.

“As farmers, we want to see an increase in corn demand and as consumers we want more affordable prices at the pump. That’s why year-round E15 gives Iowans the best of both worlds, whether a farmer or consumer, you’re benefiting at the pump, and our state’s benefiting economically” said Jolene Riessen a farmer from Ida Grove, Iowa, and the Iowa Corn Growers Association President. “The EPA has failed us, and as Iowans, we want to keep them accountable for the things they say they are going to do. That’s why this motion is so important. It gives us the opportunity to voice that concern and move the needle when it comes to having access to E15 year-round without limitations.”

In early March, the EPA delayed the implementation of a plan, created by a group of bipartisan Midwest Governors, that would allow for the sale of E15 year-round in each respective state. The Iowa Corn Growers Association continues to urge the EPA to act now, and give consumers access to reliable, homegrown, affordable fuel year-round.



Growth Energy Statement on Iowa’s Motion on EPA’s Failure to Comply with the Law and Allow for the Year-Round Sale of E15 in the Midwest

Yesterday, Iowa Attorney General Brenna Bird filed a motion for summary judgment regarding the U.S. Environmental Protection Agency (EPA)’s failure to respond to the opt-out request filed by Iowa and six other midwestern states that would allow them to sell E15—a fuel made with 15% bioethanol—year-round in their states. Growth Energy CEO Emily Skor issued the following statement in response:

“Biofuels leaders in Iowa, Nebraska, and other states have been more than patient. For more than a year past the statutory deadline they've waited for EPA to follow the law and allow them to make E15 available in their states year-round.

“They've been forced to return to court to compel EPA to do something it was required to have done by July 2022. What's more, in its continued decision to illegally delay acting on the governors' request, EPA has cited fuel distribution concerns that are greatly overstated, and can likely be attributed to the oil industry using scare tactics to prevent consumers from getting greater access to a fuel that costs less, burns cleaner, and displaces their products with every gallon.

“E15 is a low-carbon fuel that saves consumers money. It's better for the air and it's better for the rural economy. While it should never have come to this, today the entire biofuels industry, the broader bioeconomy, and the driving public of the Midwest owes Iowa and Nebraska a debt of gratitude for seeking to provide year-round access to E15.”

Background
Earlier this year, the governors of several midwestern states sent letters to EPA calling for regulatory parity between E10 (standard gasoline) and E15 (a blend with 15% bioethanol) in their states through Section 211(h)(5) of the Clean Air Act, accompanied by research illustrating the benefits of E15 to air quality. After acknowledging receipt of the governors’ request, EPA proposed a rule in March 2023 to make the necessary regulatory changes to implement year-round sale of E15 in those states beginning for the summer of 2024.

In August 2023, the petitioning states filed suit calling on the EPA to actually finalize its proposed rule governing the state opt-out waiver that would allow retailers in their states to sell E15 year-round. Today’s filing for summary judgment is a part of that case.



2023 Farm Sector Income Forecast
USDA Economic Research Service

Farm sector income is forecast to fall in 2023 after reaching record highs in 2022. Net farm income, a broad measure of profits, reached $182.8 billion in calendar year 2022, increasing $42.4 billion (30.2 percent) from 2021 in nominal dollars. In 2023, net farm income is forecast to decrease by $31.8 billion (17.4 percent) from 2022 to $151.1 billion. Net cash farm income reached $200.4 billion in 2022, increasing $51.1 billion (34.2 percent) from 2021. It is forecast to decrease by $42.5 billion (21.2 percent) from 2022 to $157.9 billion in 2023. In inflation-adjusted 2023 dollars, net farm income is forecast to decrease by $37.9 billion (20.0 percent) in 2023, and net cash farm income is forecast to decrease by $49.2 billion (23.8 percent) compared with the previous year. If realized, both income measures would remain above their 2003–22 averages (in inflation-adjusted dollars).

Summary Findings
    Overall, farm cash receipts are forecast to decrease by $25.2 billion (4.7 percent) from 2022 to $509.6 billion in 2023 in nominal dollars. Total crop receipts are forecast to decrease by $12.1 billion (4.4 percent) from 2022 levels to $264.2 billion. Receipts for soybeans, corn, and cotton are forecast to decrease while receipts for fruit/nuts and hay are forecast to increase. Total animal/animal product receipts are projected to decrease by $13.0 billion (5.0 percent) to $245.4 billion, following declines in receipts for milk, broilers, eggs, and hogs while receipts for cattle/calves are forecast to increase.

    Direct Government farm payments are forecast at $12.1 billion in 2023, a $3.5-billion (22.3 percent) decrease from 2022. Direct Government farm payments include Federal farm program payments paid directly to farmers and ranchers but exclude U.S. Department of Agriculture (USDA) loans and insurance indemnity payments made by the Federal Crop Insurance Corporation (FCIC). This decline follows lower supplemental and ad hoc disaster assistance to farmers and ranchers compared with 2022.

    Total production expenses, including those associated with operator dwellings, are forecast to increase by $14.9 billion (3.5 percent) in 2023 to $443.4 billion. Interest expenses and livestock/poultry purchases are expected to see the largest increases in 2023 while spending on fertilizer/lime/soil conditioners, fuels/oils, and feed is expected to decline relative to 2022.

    Farm sector equity is expected to increase by 6.9 percent ($229.4 billion) in 2023 to $3.57 trillion in nominal terms. Farm sector assets are forecast to increase 6.6 percent ($254.0 billion) in 2023 to $4.09 trillion following expected increases in the value of farm real estate assets. Farm sector debt is forecast to increase 5.0 percent ($24.6 billion) in 2023 to $520.7 billion. Debt-to-asset levels for the sector are forecast to improve from 12.93 percent in 2022 to 12.73 percent in 2023. Working capital is forecast to fall 5.0 percent in 2023 relative to 2022.

Total Cash Receipts Forecast to Decline from a Record High in 2022
Total inflation-adjusted cash receipts are forecast to fall $43.0 billion (7.8 percent) from 2022 to $509.6 billion in 2023. Crop cash receipts are projected to decline $21.4 billion (7.5 percent) in 2023. Similarly, animal/animal product cash receipts are expected to decline $21.7 billion (8.1 percent).

Crop Receipts Projected to Fall in 2023
Crop cash receipts are forecast at $264.2 billion in 2023, a decrease of $12.1 billion (4.4 percent) from 2022 in nominal terms. Combined receipts for corn, soybeans, and cotton are forecast to fall $14.4 billion, although fruit and nut receipts are expected to increase.

Corn receipts are expected to fall by $9.4 billion (10.6 percent), because of lower expected prices in 2023. Soybean receipts are forecast to decrease by $3.6 billion (5.9 percent) in 2023, caused by lower expected prices and quantities. Lower forecasted prices and quantities will result in a decrease of $1.4 billion (16.9 percent) in total cotton receipts. Wheat receipts are forecast to decrease $0.2 billion (1.3 percent), as lower prices will outweigh higher quantities sold. Receipts for hay are projected to increase $0.9 billion (8.6 percent), based on expectations for both higher prices and quantities sold.

Vegetable and melon cash receipts are expected to fall $0.5 billion (2.4 percent) in 2023 due to falling prices. However, this total includes projected growth of $0.6 billion in potato receipts. Rising prices are expected to drive receipts for fruit and nuts $1.2 billion (4.7 percent) higher during the year. Growth of $0.1 billion (4.5 percent) in sugarcane receipts is also forecast for 2023, while sorghum receipts are projected to fall $0.3 billion (17.1 percent).

Animal/Animal Product Receipts Forecast To Decrease in 2023
Total animal/animal product cash receipts are expected to decrease $13.0 billion (5.0 percent in nominal terms) from 2022 to $245.4 billion in 2023. While receipts for most major animal/animal products are projected to fall, receipts for cattle and calves are expected to increase during the year.

Milk receipts are expected to decrease $10.5 billion (18.3 percent) in 2023 due to lower prices. Cash receipts from cattle and calves are expected to increase $14.3 billion (16.6 percent), as price growth is expected to outpace falling quantities sold. However, negative price effects should outweigh slightly higher quantities for hog receipts, resulting in a decrease of $4.4 billion (14.2 percent) in 2023.

Broiler receipts are expected to fall $7.2 billion (14.3 percent) in 2023, due to a lower price forecast. While quantities sold are forecast to rise, lower prices should drive receipts for turkeys $0.2 billion (3.3 percent) lower during the year. Cash receipts for chicken eggs are expected to decrease $5.2 billion (26.9 percent) in 2023 from an all-time high the previous year, as falling prices should outweigh growth in quantities sold.

Lower Prices and Quantities Overall Drive Cash Receipts Decline in 2023
To better understand the factors underlying the forecast change in annual receipts from 2022 to 2023, the change was decomposed into two separate effects: (1) a price effect projecting the change in cash receipts associated with holding the quantity sold constant at 2022 levels and allowing prices to change to forecast 2023 levels; and (2) a quantity effect holding prices constant from 2022 and quantities changing to forecast 2023 levels. In 2023, falling prices and quantities sold are expected to have negative effects on cash receipts. Overall, cash receipts are forecast to decrease $25.2 billion in nominal terms in 2023, with an estimated negative price effect of $24.6 billion, and a projected negative quantity effect of $1.7 billion. In addition, a net increase of $1.1 billion in cash receipts is from forecasts for commodities whose price and quantity effects cannot be separately determined. Price effects on cash receipts are forecast to be negative for both crop and animal/animal product commodities. Quantity effects are forecast to be negative overall as well as for animal/animal product commodities, but are projected to be positive for crop cash receipts.

Direct Government Farm Payments Forecast to Decrease in 2023
Direct Government farm program payments are those made by the Federal Government directly to farmers and ranchers with no intermediaries. Typically, most direct payments to farmers and ranchers are administered by the USDA using the Farm Bill or related authorities. Direct payments can also come from supplemental programs authorized by Congress. Government payments do not include Federal Crop Insurance Corporation (FCIC) indemnity payments (listed as a separate component of farm income) and USDA loans (listed as a liability in the farm sector’s balance sheet). After reaching a record high of $45.6 billion in calendar year 2020, direct Government farm program payments decreased to $26.0 billion in 2021 and to $15.6 billion in 2022. They are forecast to fall further to $12.1 billion in 2023. The overall decrease from 2020 in direct Government farm program payments primarily reflects lower payments from supplemental and ad hoc disaster assistance, including lower Coronavirus (COVID-19) pandemic assistance.

    Supplemental and ad hoc disaster assistance payments in 2023 are forecast at $6.8 billion, a decrease of $4.7 billion (41.1 percent) from 2022, because of lower payments from other (nonpandemic related) supplemental and ad hoc disaster assistance programs. Since 2020, supplemental and ad hoc disaster assistance has represented the largest category of direct Government payments.

        Other supplemental and ad hoc disaster assistance, which includes Farm Bill designated disaster programs but excludes pandemic assistance, is forecast to be $6.4 billion in 2023, a decrease of $4.9 billion (43.4 percent) from 2022. This is mostly because of lower expected payments from the Emergency Relief Program (ERP).

        USDA pandemic assistance for producers, including from the Coronavirus Food Assistance Program (CFAP), provides relief to producers whose operations are directly affected by the COVID-19 pandemic. Payments in calendar year 2023 from these USDA programs are forecast at $366.0 million compared with $182.3 million and $7.5 billion in 2022 and 2021, respectively.

        Non-USDA pandemic assistance, or payments from the Paycheck Protection Program (PPP), administered by the Small Business Administration (SBA), ended on May 31, 2021, with no payments in 2022 and 2023. Non-USDA pandemic assistance is estimated at $8.6 billion for 2021, based on October 3, 2023, data from the SBA. The PPP payments were designed to help small businesses keep their workers on the payroll through forgivable loans. Forgiven loan amounts to farm operations are treated as a direct payment to the farm sector.

    Conservation payments from the financial assistance programs of USDA's Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) are expected to be $3.7 billion in 2023, an increase of $148.5 million (or 4.2 percent) from the 2022 estimate. The increase in conservation payments is due to a marginal increase in Conservation Reserve Program (CRP) enrolled acres, an increase in payments from NRCS programs, and some expected payments from the Inflation Reduction Act (IRA) funds allocated for USDA’s conservation programs.

    The Dairy Margin Coverage Program (DMC) is forecast to make $1.3 billion in payments in 2023, which is up by $1.1 billion compared with 2022. This increase is due to lower milk prices in 2023 compared to 2022.

    Farm bill commodity payments under the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs are forecast to decline by $28.8 million (7.7 percent) in 2023 to $343.7 million compared with $372.5 million in 2022. The ARC program provides income support payments when actual crop revenue declines below a specified guarantee level. ARC payments are expected to be $334.3 million in 2023, an increase of $229.2 million (218.1 percent) from $105.1 million in 2022. Despite market prices significantly exceeding benchmark prices for the 2022 crop year, low yields triggered ARC payments in some counties for seed cotton, wheat, corn, soybeans, and grain sorghum. The PLC program provides income support payments when the effective price of a covered commodity falls below its effective reference price. PLC payments in 2023 are expected be $9.4 million, a decrease of $258.0 million (or 96.5 percent) from $267.4 million in 2022. PLC payments are expected to decrease in 2023 because of higher commodity prices for covered commodities in 2022 compared with 2021.

Production Expenses Forecast To Increase in 2023
Farm sector production expenses, including expenses associated with operator dwellings, are forecast to increase by $14.9 billion (3.5 percent) from 2022 to $443.4 billion in 2023. However, when adjusted for inflation, production expenses are forecast to remain comparable to the 2022 level, increasing by only 0.1 percent from 2022 to 2023, and remaining below the record-high level of 2014.

Spending on feed, labor, and livestock/poultry purchases are forecast to represent three of the largest categories of spending in 2023. Feed expenses, the largest single expense category, are forecast at $81.6 billion in 2023, decreasing from the record-high 2022 level by 2.5 percent. Labor expenses (including noncash employee compensation) are forecast to rise by $1.6 billion (3.9 percent), reaching $43.5 billion in 2023. When adjusted for inflation, the labor forecast is still below the record-high levels observed in 2014 and 2017. Livestock and poultry expense is projected to grow by $6.8 billion (19.6 percent) to $41.4 billion. When adjusted for inflation, this forecast is the third highest on record, just below the levels of 1973 and 1979.

Two other expense categories are forecast to notably change in 2023:

    Interest expenses (including expense for operator dwellings) are forecast to have the most significant increase in nominal terms at $10.3 billion (42.9 percent above the 2022 value) to $34.4 billion in 2023. This reflects expectations that both total debt levels and interest rates will rise in 2023. While in nominal terms this level is forecast to be the highest to date, in inflation-adjusted dollars, interest expenses were at least 50 percent higher in early 1980s.

    Fertilizer expenses (including lime and soil conditioner expenses) are projected to have the most significant decline in nominal terms from 2022, falling $5.2 billion (14.1 percent) to $31.7 billion in 2023. The projected drop is driven by reductions in fertilizer prices.



Statement from Agriculture Secretary Tom Vilsack on the 2023 Farm Sector Farm Income Forecast

Today, the U.S. Department of Agriculture’s (USDA) Economic Research Service released its annual Farm Sector Farm Income Forecast report for 2023. Agriculture Secretary Tom Vilsack issued the following statement:

“Today’s farm income forecast for 2023 shows that, while net farm income is expected to drop below the 2022 record high, it is still one of the best years on record for the overall farm sector at $151.1 billion. In fact, net cash farm income for 2023 is 15 percent above average for the last two decades, and farm income over the 2021-2023 period represents the highest level of farm income in the last 50 years. U.S. agriculture exports have also seen the three highest years on record in 2021-2023, which is reflected in overall cash receipts, while 2024 is projected to be the fourth highest year on record despite potential declines.

"Even so, the data shows a majority of farm households rely on off-farm jobs to make ends meet, indicating that the income is not evenly distributed across the farm spectrum. USDA will continue our efforts to bolster a complementary system that makes it possible for small- and mid-sized farms to benefit from more, new and better markets and climate smart agriculture opportunities so they can thrive. The change in net farm income this year is reflective of overall lower prices for farmers, higher production costs and higher interest rates, and declining government payments since their 2020 record levels.

"A bright spot for farmers is that some production costs, including feed, fertilizer and pesticides, have declined. USDA is taking all of these factors into account as we design and implement our programs, and as we work with Congress on the next Farm Bill into 2024.”



USGC 2023/24 Corn Harvest Quality Report Shows Largest Crop, Lowest Broken Corn Ratio On Record

According to the U.S. Grains Council’s (USGC’s) 2023/2024 Corn Harvest Quality Report, the 13th such annual survey published globally today, the 2023 U.S. corn crop is the largest on record with the lowest percentage of broken corn and foreign material (BCFM) to date.

Warm and dry weather conditions in April and May let producers plant ahead of schedule, and despite concerns about continued dryness in June, healthy rainfall returned later in the summer. This allowed the crop to properly mature and resulted in the timely harvest of 386.97 million metric tons (15,234 million bushels) of corn.

The average aggregate quality of the representative samples tested was better than the grade factor requirements for U.S. No. 1 grade. The report also showed that 88.0 percent of the samples met the grade factor requirements for U.S. No. 1 grade and 96.7 percent met the grade factor requirements for U.S. No. 2.

“The Council is proud to produce this annual report that proves the quality and abundance of U.S. corn year over year. The transparency it provides to buyers helps them make informed decisions and takes another step towards developing markets, enabling trade and improving lives,” said Brent Boydston, USGC Chairman. “This crop’s incredible volume allows the United States to remain the world’s leading corn exporter, accounting for an estimated 26.4 percent of global corn exports.”

The report is based on 611 yellow corn samples taken from defined areas within 12 of the top corn-producing and exporting states. Inbound samples were collected from local grain elevators to measure and analyze quality at the point of origin and provide representative information about the variability of the quality characteristics across the diverse geographic regions.

This year’s corn protein concentration registered at 8.8 percent, an improvement on the five-year average of 8.5 percent. The crop also showed lower average total damage and average moisture content when compared to the five-year average.

The chemical composition of the crop remained in a healthy range, as 99.5 percent of the samples tested below the U.S. Food and Drug Administration (FDA) action level for aflatoxins and 100 percent of the samples tested below the 5.0 parts per million FDA advisory level for deoxynivalenol. Additionally, 98.3 percent tested below the FDA’s strictest guidance level of 5.0 parts per million for fumonisin.

The Council will present its findings to buyers around the world in a series of roll-out events, beginning in China on Dec. 12. Presentations will continue in India, Korea, Panama and Taiwan through the first quarter of 2024 and aim to offer participants clear expectations regarding the quality of corn for this marketing year. During these events, crop quality information is accompanied by updates on U.S. corn grading and handling, which provides importers and end-users with a better understanding of how U.S. corn is moved and controlled through export channels.



NCBA Secures Senate Introduction of Legislation to Protect Producers from Black Vultures

This week, the National Cattlemen’s Beef Association (NCBA) hailed the introduction of the Senate version of the Black Vulture Relief Act introduced by Sen. Markwayne Mullin (R-OK), a companion bill to legislation introduced in the House of Representatives earlier this year that protects cattle producers from the devastating impacts of black vulture depredation.
 
“Black vultures are particularly nasty predators, and their attacks can be financially devastating to small, family-owned cattle operations,” said NCBA Policy Division Chair Gene Copenhaver, a Virginia cattle producer. “The current system prevents cattle producers from effectively protecting their herd. Not only that, but black vultures are also an abundant species—millions-strong—that do not need federal protection. That’s why we urgently need legislation like the Black Vulture Relief Act. NCBA is extremely appreciative of Sen. Mullin’s work alongside Reps. John Rose (R-TN) and Darren Soto (D-FL) to stand up for the needs of cattle producers.”
 
Earlier in the year, the House Natural Resources Water, Wildlife and Fisheries Subcommittee heard testimony from a Missouri cattle producer and NCBA member who had personally experienced attacks on his herd from black vultures.
 
“Black vultures play a role in the ecosystem, and cattle producers have no desire to eradicate the species, but to continue managing them under such a restrictive system is ludicrous. The species is abundant across the continent, and no longer a conservation concern,” said cattle producer Charlie Besher, chairman of NCBA’s Property Rights and Environmental Management Committee. “These birds are extremely vicious predators, and their attacks on cattle are devastating, both emotionally and financially.”
 
The Black Vulture Relief Act is bipartisan legislation that would allow cattle producers to take vultures without a permit, when there is an immediate need to protect their livestock from injury or death. After 50 years of federal protections, black vultures now number 190 million strong and are an abundant species across the country. The U.S. Fish and Wildlife currently issues black vulture depredation permits to states, which issue sub-permits to producers allowing take of only three birds per year. With black vultures often attacking in flocks as large as 50, the current permits are insufficient for allowing producers to protect their livestock. Black vulture attacks are particularly vicious with the birds usually targeting calves hours or even minutes after birth.

"Simply put, current rules and laws are outdated regarding the black vulture.  Oklahoma cattle ranchers need to be able to protect their livestock from predators and not be limited by these outdated regulations," said Oklahoma Cattlemen's Association Executive Vice President Michael Kelsey. "Thanks to Senator Mullin, a cattle producer himself who knows the challenges of cattle ranching, for introducing a piece of legislation that would achieve a reasonable update to federal law and allow cattle ranchers the ability to protect their livestock in harmony with the environment and wildlife resources."

The Black Vulture Relief Act is also supported by numerous NCBA state affiliates.



ICASA Awards Grants to Address Antimicrobial Resistance in Cattle & Swine

The International Consortium for Antimicrobial Stewardship in Agriculture (ICASA) awarded three grants totaling $377,503 to track antimicrobial usage and support better-informed antibiotic treatment for bacteria that cause diseases in swine and beef cattle.

The animal agriculture industry is committed to doing its part to lessen antimicrobial resistance (AMR) and ensure antibiotics are effective for people and animals for decades to come. Strategies to reduce the need for antimicrobial usage in animal agriculture are being considered to combat this risk of AMR. However, banning all antibiotics would adversely impact animal health, welfare, performance and production, increasing food safety risks and economic losses. The industry needs to maintain the use of antimicrobials to control AMR and to make informed medical decisions.

The Foundation for Food & Agriculture Research (FFAR) awarded Dr. Kathryn Havas from Pipestone a $202,555 grant through ICASA to develop a protocol that tracks antibiotic use across large-scale commercial swine production systems and compares it in real-time with its respective on-farm antibiotic use. The National Antimicrobial Resistance Monitoring System (NARMS) is tracking ARM data at the level of the meat case, the harvest facility and across cases of human foodborne illness; however, no such effort exists at the level of the swine farm. This project expands upon previous research, including data collection from participating swine farms and preliminary statistical analysis of antimicrobial use and resistance data. The research team continues to collect data across pathogens of food safety and veterinary significance from swine farms based on NARMS standards and relate this information with antibiotic usage data to produce measurable outcomes. Pipestone’s research aims to enhance the marketability of pork, improve animal welfare and launch the United States swine industry to the forefront of AMR surveillance globally. Pipestone and the National Pork Board provided matching funds for a $405,111 investment.

Additionally, the livestock industry is plagued by bovine respiratory disease (BRD), an infectious condition that can spread through a herd and comprises an estimated 80% of antibiotic treatments. ICASA awarded Ergense Inc. and Kansas State University (K-State) grants to improve understanding of BRD and reduce excess antibiotic usage.

FFAR awarded Thomas Darbonne from Ergense Inc. a $50,000 grant through ICASA to develop an acoustic monitoring technique to inform antibiotic treatment of cattle for BRD. The standard procedure for cattle arriving at a feedlot is to place each lot of cattle into a receiving pen for at least 24 hours to let them settle, and the livestock management workers decide whether the entire pen should receive antibiotic treatment based on various animal health factors. To reduce treatment subjectivity, Darbonne is developing an audio monitoring technique that uses machine learning to analyze acoustic signatures of animal vocalizations to inform the BRD treatment decision. Cactus Research, Ergense, Five Rivers Cattle Feeding, McDonald’s Corporation and Veterinary Research & Consulting Services provided matching funds for a $104,128 investment.

FFAR awarded Dr. Natalia Cernicchiaro and Dr. David Renter from K-State a $124,948 grant through ICASA to improve understanding of how feedlot cattle are classified based on BRD risk. These researchers are gathering information from industry stakeholders on current practices and knowledge gaps related to whole-pen antibiotic metaphylaxis administration for BRD. Additionally, Cernicchiaro and Renter are designing a survey of feedlot managers, veterinarians and other decision-makers to establish what information is used to classify BRD risk and animal treatment. These data can be used to comprehensively assess health risks and interventions, and as a result, optimize health management strategies for specific cattle populations. The outcomes of this research will improve animal management and well-being, give more accurate information about cattle health risks for BRD and encourage more efficient antimicrobial use. K-State, Beef Marketing Research, Cactus Research, Five Rivers Cattle Feeding, Hy-Plains Feedyard, Innovative Livestock Services, Veterinary Research & Consulting Services and Zoetis provided matching funds for a $249,911 investment.

FFAR established ICASA in 2019 with an initial $7.5 million investment to fund research that promotes targeted antibiotic use, advances animal health and welfare and increases transparency in food production practices. The private sector is matching FFAR’s investment for a total $15 million investment in antibiotic stewardship research.