Rural Mainstreet Economy Slumps into Negative Territory for Fourth Straight Month
For a fourth straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the December survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The region’s overall reading for December rose to 41.7 from 40.4 in November. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
“Higher interest rates and a credit squeeze are having a significant and negative impact on Rural Mainstreet businesses. Approximately 13.3% of bank CEOs indicated that their local economy was already in a recession while another 43.3% expect a recession in early 2024,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
When asked to name the greatest 2024 economic threat for community banks, approximately four of 10 identified a downturn in farm income as the chief 2024 hazard.
Farming and ranching land prices: The region’s farmland price index increased to 67.2 from November’s 66.7. “Creighton’s survey continues to point to solid, but slowing, growth in farmland prices. Approximately, 41.4% of bankers reported that a downturn in farm income was the greatest threat to community banks in 2024,” said Goss.
Farm equipment sales: The farm equipment-sales index for December was unchanged from November’s weak 49.5. “This is the sixth time in the past seven months that the index has fallen below growth neutral. Higher borrowing costs and tighter credit conditions are having a negative impact on the purchases of farm equipment,” said Goss.
According to the International Trade Administration, the export of agriculture products from the region declined from $14.1 billion for the first ten months of 2022 to $12.0 billion for the same period in 2023 for a 14.7% slump.
Below are the state reports:
Nebraska: The Nebraska RMI for December slumped to 37.3 from 39.7 in November. The state’s farmland price index for December declined to 63.7 from 64.1 in November. Nebraska’s December new-hiring index slumped to 46.5 from November’s 47.6. According to the International Trade Administration, the export of agriculture products from Nebraska declined from $1.2 billion for the first ten months of 2022 to $614.0 million for the same period in 2023 for a 47.1% slump.
Iowa: Iowa’s December RMI jumped to 45.5 from 32.4 in November. Iowa’s farmland price index for December climbed to 64.0 from November’s 62.0. Iowa’s new hiring index for November increased to 45.1 from 44.2 in October. According to the International Trade Administration, the export of agriculture products from Iowa declined from $1.8 billion for the first ten months of 2022 to $1.3 billion for the same period in 2023 for a 29.3% slump. James Brown, CEO of Hardin County Savings Bank in Eldora, said, “Almost all farmers have lost working capital with little to no gain in net worth. Lower crop yields and prices are the major cause along with our few customers who have cattle and/or hogs.”
The survey represents an early snapshot of the economy of rural agriculturally- and energy-dependent portions of the nation. The Rural Mainstreet Index is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. The index provides the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former Chairman of the Independent Community Banks of America, created the monthly economic survey and launched it in January 2006.
Learn How Brazilian Biofuels Growth Impacts U.S. Biofuels Producers and Farmers at the 2024 Iowa Renewable Fuels Summit
What does rapidly growing Brazilian corn and biofuels production mean for the United States and beyond? A panel of experts will explore biofuels exports, feedstocks, Brazil infrastructure and more during the 2024 Iowa Renewable Fuels Summit on January 11, 2024. Attendance is free and open to the public.
The Brazilian Wave panel will feature experts:
· Isabella Ausdal, Global Ethanol Policy and Economics Manager at the U.S. Grains Council
· Greg Hibner, President of Hawkeye Gold
· Hagan Rose, Director of Sales and Marketing – International at EcoEnergy
· Paul Smolen, Principal at AgriNetwork
“Brazil has surpassed the United States in corn exports and is rapidly growing its corn ethanol production,” said Iowa Renewable Fuels Association Marketing Director Lisa Coffelt. “This panel of experts will take attendees on a journey through the heart of Brazil to determine what the rise of Brazilian corn ethanol could mean for global commodity and biofuels competition.”
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.
Monthly Dairy Webinar Jan. 17 to Focus on Climate and Weather Predictions for the 2024 Growing Season
The Iowa State University Extension and Outreach Dairy Team monthly webinar series continues on Wednesday, Jan. 17 from 12 noon to 1 p.m. This program will focus on the climate and weather predictions for the 2022 growing season.
Dennis Todey, director of the USDA Climate Hub in Ames will lead the presentation. Todey is a native Iowan with his B.S. and Ph.D. from Iowa State University in Meteorology and Agricultural Meteorology. He has spent two stints in South Dakota, first completing his M.S. at the South Dakota School of Mines and Technology and most recently as Associate Professor and State Climatologist for South Dakota at South Dakota State University. He is well known regionally as a speaker and media source on various climate issues and is the former president of the American Association of State Climatologists.
Producers, dairy consultants, and industry representatives can attend the webinar by registering at https://go.iastate.edu/CLIMATE24.. There is no registration fee; however, registration must be done at least one hour prior to the program to receive the URL.
For more information, contact the ISU Extension and Outreach Dairy Field Specialist in your area: in Northwest Iowa, Fred M. Hall, 712-737-4230 or fredhall@iastate.edu; in Northeast Iowa, Jennifer Bentley, 563-382-2949 or jbentley@iastate.edu; in East Central Iowa, Larry Tranel, 563-583-6496 or tranel@iastate.edu; in Ames, Dr. Gail Carpenter, 515-294-9085 or ajcarpen@iastate.edu.
Commercial Red Meat Production Down 2 Percent from Last Year
Commercial red meat production for the United States totaled 4.68 billion pounds in November, down 2 percent from the 4.79 billion pounds produced in November 2022.
Beef production, at 2.28 billion pounds, was 6 percent below the previous year. Cattle slaughter totaled 2.73 million head, down 6 percent from November 2022. The average live weight was up 3 pounds from the previous year, at 1,387 pounds.
Veal production totaled 4.3 million pounds, 6 percent below November a year ago. Calf slaughter totaled 24,200 head, down 22 percent from November 2022. The average live weight was up 50 pounds from last year, at 301 pounds.
Pork production totaled 2.39 billion pounds, up 2 percent from the previous year. Hog slaughter totaled 11.1 million head, up 2 percent from November 2022. The average live weight was down 1 pound from the previous year, at 289 pounds.
Lamb and mutton production, at 11.2 million pounds, was up 1 percent from November 2022. Sheep slaughter totaled 189,600 head, 5 percent above last year. The average live weight was 116 pounds, down 5 pounds from November a year ago.
by State (million lbs - % Nov '22)
Nebraska .......: 669.5 95
Iowa ..............: 796.8 106
Kansas ...........: 480.7 91
January to November 2023 commercial red meat production was 49.9 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 1 percent.
NEBRASKA CHICKENS AND EGGS
Nebraska egg production during November totaled 206 million eggs, up from 165 million in 2022. November egg production per 100 layers was 2,520 eggs, compared to 2,277 eggs in 2022. All layers in Nebraska during November 2023 totaled 8.17 million, up from 7.23 million the previous year, according to the USDA's National Agricultural Statistics Service.
IOWA: Iowa egg production during November 2023 was 1.12 billion eggs,up 10 percent from the previous November, according to the latest Chickens and Eggs report from the USDA's National Agricultural Statistics Service. The average number of all layers on hand during November 2023 was 44.1 million, up 8 percent from last year. Eggs per 100 layers for November 2023 was 2,530, up 1 percent from a year ago.
November Egg Production Up 4 Percent
United States egg production totaled 9.30 billion during November 2023, up 4 percent from last year. Production included 8.02 billion table eggs, and 1.28 billion hatching eggs, of which 1.19 billion were broiler-type and 91.8 million were egg-type. The average number of layers during November 2023 totaled 390 million, up 3 percent from last year. November egg production per 100 layers was 2,385 eggs, up 1 percent from November 2022.
Total layers in the United States on December 1, 2023 totaled 389 million, up 3 percent from last year. The 389 million layers consisted of 322 million layers producing table or market type eggs, 63.9 million layers producing broiler-type hatching eggs, and 3.62 million layers producing egg-type hatching eggs. Rate of lay per day on December 1, 2023, averaged 79.4 eggs per 100 layers, up 1 percent from December 1, 2022.
SowBridge Educational Series 2024-2025 Is Open for Registration
SowBridge, the distance educational series for those who work with sows, boars and piglets, and with genetic and reproductive issues, begins its next program year in early February, and registration is now underway. The series will be provided online through Zoom, although participants will be able to use a call-in option instead if they prefer.
Sherry Hoyer, communications specialist with the Iowa Pork Industry Center at Iowa State University, said suggestions from participants guide the selection of future topics and speakers, and the live interaction with session speakers will not change.
“SowBridge provides all participants with the opportunity to hear directly from experts, and to contact those experts following the individual sessions,” she said.
Sessions generally are held on the first Wednesday of the month and run from 11:15 a.m. to about 12:15 p.m. Central Time. Two exceptions this year: the fifth session is moved up one week to May 29 to avoid conflicts with World Pork Expo, and the final session is on Jan. 8, 2025, which is the second Tuesday.
During each session, participants can ask questions of the industry expert presenter from the comfort of their home, office or swine unit. Each registration provides access to one Zoom connection per session and all program materials provided by presenters.
The cost is $200 for the first registration, and half that amount for each subsequent registration from the same entity.
Registration is due Jan. 20, to ensure participants have access to materials for the first session on Feb. 7. A flyer with information and a registration form is available on the IPIC website https://www.ipic.iastate.edu/information/2024SBbrochureIPIC.pdf.
The upcoming program session dates and topics are as follows.
Feb. 7, 2024. Best and worst of audits: Preparing for success.
March 6. Managing sows in pens for alternative housing from weaning to breeding.
April 3. Barn equipment and ventilation fan maintenance.
May 1. Issues with successfully breeding gilts and sows.
May 29. Herd veterinarians: What do they want to know?
July 3. Implementing precision feeding in the sow herd.
Aug. 7. Sow foot care.
Sept. 4. Feed biosecurity in the sow herd.
Oct. 2. Replacement gilt management and selection for group vs. stall gestation.
Nov. 6. P1 Sow development.
Dec. 4. Managing nurse sows.
Jan. 8, 2025. Sow shoulder wounds - causes and treatments.
For more information on the sessions or registration, contact Hoyer by phone at 515-294-4496 or email at shoyer@iastate.edu.
SowBridge is provided through a cooperative effort of 15 colleges and universities from the nation’s major swine producing states.
Advice for Applying Beef Cattle Manure during Winter
As winter approaches, the challenges associated with the application of cattle manure become more pronounced. Adopting best practices that maximize nutrient utilization and safeguard our water resources is crucial. Daniel Andersen, associate professor of agricultural and biosystems engineering and extension ag engineering specialist at Iowa State University, offers some critical considerations for beef manure application in the winter.
Compliance with regulations
"Familiarize yourself with and adhere to local regulations governing winter manure application," he said. "Iowa prohibits liquid manure application from confinement operations with more than 500 animal units on snow-covered ground from Dec. 21 to April 1 and frozen ground from Feb. 1 to April 1."
While solid manure application is not prohibited by Iowa law, careful consideration should be given to minimizing negative impacts on water quality as the state's waters are protected.
"For a cattle operation, this means that how the law impacts you is dependent on your operation and the manure management system you use. The law doesn't prohibit manure application if you work with solid manure, like a bedded pack," Andersen said. "However, all manure applications must prevent water quality violations. Applying from a deep pit or other liquid or slurry manure system will be restricted if you use a deep pit or other liquid or slurry manure system."
If your facility has an NPDES permit or an NRCS Comprehensive nutrient management plan, be sure to check restrictions specific to your operation in these documents. Typically, both will prohibit winter manure application for all types of manure, both solid and liquid.
The "winter manure application" rules have two parts: a date and condition. Both components must be true for liquid and slurry manure application to be prohibited. So, while the calendar date of Dec. 21 is quickly approaching, it is unlikely that the ground will be snow-covered (defined as 1 inch of snow or 0.5 inches of ice on the soil surface). As a result, liquid manure application would still be allowed until snow cover occurs.
Understanding snow conditions
Applying manure directly onto snow-covered fields poses a significant risk of nutrient runoff when the snow melts, especially if melt will occur quickly. Instead, wait to apply until after snowmelt or choose alternative manure management strategies. Applying manure on frozen ground is also discouraged, as the frozen surface inhibits absorption, increasing runoff potential.
"Timing is key; apply manure when limited snow is present and quick melts aren't expected," he said. "Slow melting encourages water infiltration and absorption of manure nutrients into the soil."
If applying solid manure when snow is present is necessary, choose fields with lesser snow accumulation that are relatively flat. Increase buffer or setback distances around field edges to reduce the risk of nutrient transport from the field.
Thoughtful land use choices
Assessing land use choices is pivotal in winter manure management. Avoid applying manure on steep slopes or areas prone to poor drainage, as these increase the likelihood of runoff. Choose fields with good water-holding capacity to minimize the risk of nutrient loss.
Additionally, consider the implementation of cover crops, which capture excess nutrients and protect the soil from erosion during winter months," Andersen said. "Residue cover offers these main benefits – it helps hold the soil in place, slows down runoff, reduces erosion, and acts as a filter to help hold dislodged soil and manure particles."
However, residue can also capture snowfall and hold it in the field. While it takes approximately 10" of snow to make an inch of water, ice-crusted soil water intake is often slow.
Protecting water quality
Prioritize water quality by maintaining setback distances from water bodies and sensitive areas. Implementing vegetative buffers helps prevent nutrient runoff into waterways. Incorporating manure into the soil soon after application is another effective strategy, reducing the risk of surface runoff and enhancing crop nutrient absorption. Where possible, maintain grass or cover crop buffers downslope of manure-applied areas to slow any runoff and ensure solids in the water settle out before trickling away. Leave a setback area around field borders to reduce the risk of manure nutrients leaving the field.
In conclusion, adopting these best practices for manure application in the winter will enhance nutrient management and contribute to protecting our water resources. While research has consistently shown greater potential risk of nutrient loss from winter manure application, research studies demonstrate loss is often related to quick snow melt or rainfall on frozen soils. Given current Iowa conditions, with no snowpack and low chances of rainfall, the late risk of nutrient loss is lessened this year. Stay informed of the forecast and be proactive to changing weather conditions.
U.S. Grains Council Statement Regarding Rail Suspension At U.S.-Mexico Border
On Monday, Dec. 18, 2023, U.S. Customs and Border Protection (CBP) was forced to suspend rail operations at key points into and out of Mexico, specifically El Paso and Eagle Pass, Texas, to alleviate a sharp increase in illegal immigration at the border. These actions affect U.S. corn and barley at this time, two commodities the U.S. Grains Council represents. The CBP is working with the Mexican government and the Mexican rail system to remedy the situation as quickly as possible, but there is no timeline for resumption of normal operations. The U.S. Grains Council in Mexico is working with the Mexican industry and end users and monitoring the situation to ensure the least amount of disruption in services. Mexico is the top U.S. trading partner for U.S. corn, distiller’s dried grains with solubles (DDGS) and barley, purchasing 16 million metric tons (MMT), 2 MMT and 317,000 metric tons, respectively, in the 2022-2023 marketing year.
“The suspensions in El Paso and Eagle Pass threaten to impact trade to our most important partner, so we are working hard in the country to help alleviate the issues as quickly as possible,” said Ryan LeGrand, U.S. Grains Council president and CEO. “The trading system in North America relies on interconnectedness, and any disruption affects both the U.S. and Mexican economies, not only with corn, DDGS and barley, but it also affects processing, biofuels production, feeding livestock and more, so it is vital the situation is resolved in a timely manner for the betterment of producers, industry and consumers on either side of the border.”
The Council will continue to monitor the situation.
With USDA Progress on Packers and Stockyards Rulemakings, 2023 a Productive Year for Competition in Agriculture
This week, the United States Department of Agriculture (USDA) made key procedural moves on several Packers and Stockyards Act (PSA) rulemakings by submitting them to the Office of Management and Budget for review. Additionally, this week, the Federal Trade Commission and the Justice Department jointly issued the 2023 Merger Guidelines, signalling more scrutiny when considering mergers and acquisitions. These news items cap a productive year for competition in agriculture and National Farmers Union’s Fairness for Farmers campaign.
“In 2023 we saw major progress on building a fairer and more equitable food system,” said NFU President Rob Larew. “The Biden Administration has walked the walk on their promises to promote fairness in our markets. There’s still plenty of work to be done, but 2023 was the best year for competition in agriculture in decades.”
Throughout the year, NFU supported or highlighted multiple actions taken on the state and federal level that promoted Fairness for Farmers, including:
· NFU Statement on Re-Introduction of Cattle Price Discovery and Transparency Act
· NFU Applauds USDA Announcement on Product of USA Labeling
· Colorado Right to Repair Law a Win for Farmers Across the Country
· NFU Participates in White House Event on Competition in the Farm Bill
· EPA Affirms Farmers’ Right to Repair
· NFU Stands in Strong Support of Right to Repair Bill
· NFU Statement on Finalized USDA Poultry Transparency Rule
Launched in 2021, the Fairness for Farmers campaign works to build fairer and more competitive agricultural markets, and to address the monopoly crisis in agriculture.
Looking ahead to 2024, NFU will continue to advocate for fairer and more transparent markets, as well as a farm bill that prioritizes competition in the economy.
President Larew added, “Farmers Union heads into 2024 with the wind at our backs. On behalf of family farmers and ranchers across the country, we’re ready to get to work.”
USDA Issues Permit for Santa’s Reindeer to Enter the U.S.
The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) today issued a transit permit to Mr. S. Nicholas Claus of the North Pole, a distributor with Gifts and Good Cheer, Inc. The permit will allow reindeer to enter and exit the United States between the hours of 6 p.m. on Dec. 24, 2023, and 6 a.m. on Dec. 25, 2023, local time, through or over any U.S. border port.
"USDA is delighted to grant Mr. Claus and his reindeer a special permit to enter the United States, ensuring a seamless journey for the joy they bring each holiday season," said Jenny Lester Moffitt, Under Secretary for Marketing and Regulatory Programs. "We extend a warm welcome to Mr. Claus and recognize the vital role of U.S. milk and cookies in fueling his festive flight."
Veterinary officials ensured the reindeer met all entry requirements before issuing the permit. Dr. Rosemary Sifford, USDA’s Chief Veterinary Officer, stated: “At a recent inspection, the reindeer were found to be healthy and able to prance and paw with each hoof.”
It was noted on the health certificate that one reindeer, Rudolph, has a minor physical anomaly. However, APHIS indicated that Rudolph’s red nose, while bright, was normal for him and not a concern.
APHIS regulates the movement of cervids, including reindeer, to protect the health of America’s livestock population. The permitting process provides assurance that only healthy animals enter the United States.
USDA has confirmed that the reindeer will arrive pulling a wooden sleigh with jingling bells attached, filled with brightly wrapped gifts. Port personnel will clean and disinfect the runners and underside of the sleigh at the time of entry. They will also conduct a short visual inspection of the reindeer. Mr. Claus has been asked to disinfect his boots and thoroughly wash his hands. These measures are intended to prevent the entry of any livestock diseases the team may encounter during deliveries to farms and houses around the world prior to entering the United States.
Mr. Claus also provided an advance list of what port personnel should expect upon their arrival. This includes a variety of food items, all of which come from approved locations and none of which pose a threat to U.S. animal or plant health.
“It’s important that Gifts and Good Cheer, Inc. take all the right steps and precautions to protect against the potential introduction of pests and diseases,” explained Mr. Claus. “I appreciate USDA’s assistance every year as we gear up for our big night.”
Whether you celebrate Christmas, Hanukkah, Bodhi Day, Noche Buena, Winter Solstice, Kwanzaa, Diwali, or other holidays during this time of year, USDA wishes you a happy and healthy season full of time-honored traditions and celebrations.
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