Wednesday January 10 Ag News

November Pork Export Value Highest in 30 Months; Asia Headwinds Persist for Beef

Fueled by record performances in Mexico, Central America and Colombia, November exports of U.S. pork reached the highest value since mid-2021, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). U.S. beef exports slowed in November, recording the third lowest value of 2023. November lamb exports also trended lower.

With a month to spare, pork exports set numerous annual records
November pork exports totaled 258,601 metric tons (mt), up 5% from a year ago and the highest in six months. Export value was up 2% to $737.4 million, the highest since May 2021 and the seventh highest on record. November volume and value to Central America were record-large, while export value reached new heights in Mexico and Colombia. November exports also increased significantly to South Korea and Oceania.

For January through November, pork exports totaled 2.64 million mt, up 8% from a year ago, valued at $7.39 billion (up 5%). Annual records were already achieved in Mexico, the Dominican Republic, Malaysia and Indonesia, while exports to Central America are on a record pace. Pork export value per head slaughtered ($63.12) was also record-high through November.

“The momentum for U.S. pork exports is remarkable and very broad-based,” said USMEF President and CEO Dan Halstrom. “While Mexico accounts for much of the past year’s export growth, there are success stories throughout the Western Hemisphere and across the entire globe. And the coming year also looks very promising in both established and emerging markets.”

Solid demand for U.S. beef in Western Hemisphere, but struggling in Asia
Beef exports totaled 99,029 mt in November, down 14% from a year ago and the second lowest of the year, while value fell 7% to $786.2 million. For the first 11 months of the year, beef exports were 13% below the record pace of 2022 at 1.18 million mt, while value declined 17% to $9.11 billion. Beef exports increased year-over-year to Mexico, Central America, the Dominican Republic and Hong Kong, but trended significantly lower to South Korea, Japan and China. Exports to Taiwan were below the record levels of 2022, but did not decline as sharply as in the larger Asian markets.

“There are certainly bright spots for U.S. beef, with exports rebounding in Mexico and demand in several Western Hemisphere markets the strongest we’ve seen in years,” Halstrom said. “But economic conditions in our largest Asian markets and the sharp rebound in Australian production and exports have been persistent obstacles over the past year, making it a sharp contrast with the tremendous 2022 performance for U.S. beef exports. Despite these challenges, we still see sustained demand for chilled U.S. beef, and the U.S. remains the dominant supplier of chilled beef entering Korea, Japan and Taiwan.”

Lamb exports still trending lower
November exports of U.S. lamb totaled 115 mt, down 64% from a year ago, while value fell 50% to $817,000. January-November exports were 18% below the previous year’s pace at 2,169 mt, while value was 17% lower at $11.5 million. Exports trended higher to Costa Rica, Guatemala, the Netherlands Antilles and Barbados, but these gains were offset by lower shipments to Mexico and Canada.



CVA directors complete 'Director Certification Program'

Ben Loseke (Monroe, NE - Region 3) and Chris Luethje (Monroe, NE - Region 5), directors of Central Valley Ag cooperative, recently completed a four-phase educational program co-sponsored by the Nebraska Cooperative Council and CoBank. Each will receive a Certificate of Recognition acknowledging completion of the program.

The Director Certification Program is a unique educational program specifically designed to assist cooperative directors to more fully understand their ever-changing responsibilities. The program has been presented annually at various locations throughout Nebraska since its inception in 1978. More than 8,540 phases have been completed.

The program consists of four one-day courses designed to help participants become more effective cooperative directors. Some of the workshop topics include legal obligations of directors; cooperative principles and practices; using financial statements in making decisions; the benefits of long-range planning; capitalization of cooperatives; and a director's role in establishing proper controls. Workshop segments are patterned to closely follow the growing responsibilities of cooperative directors.

Rocky Weber, president and general counsel of the Nebraska Cooperative Council of Lincoln, said, "Farm supply and marketing cooperatives are essential segments of the agribusiness industry in Nebraska. These local cooperatives contribute to the success of today's farmers and ranchers, and the complexities of cooperatives only grows. This requires local directors to continually seek out training programs to enhance their skill set. The Council continues to place a high priority on director education programs because education will be a key factor in determining the future success of Nebraska's cooperatives."

The Nebraska Cooperative Council is the trade association for agricultural cooperatives. Over 96% of the agricultural cooperatives throughout Nebraska are members of the Council.



REYNOLDS ACKNOWLEDGES KEY POLICY PRIORITY FOR IOWA CATTLEMEN

Last night, Gov. Kim Reynolds delivered her Condition of the State address to Iowans. The address unveiled her vision for Iowa, which included a key policy priority for the Iowa Cattlemen’s Association (ICA): enhancing restrictions on foreign ownership of agricultural land.

“At our recent annual meeting, ICA members voted to enact policy to protect food security and national security by limiting foreign ownership of agricultural land,” said ICA CEO Bryan Whaley. “Current federal law imposes no restrictions on the amount of private agricultural land that may be foreign-owned. The Iowa Legislature can’t control what’s happening in other states but our elected officials can ensure Iowa farmland continues to be owned and operated by Iowa farm families.”

Foreign investors own more than 40 million acres of agricultural land nationwide. Between 2010 and 2021, nearly 16 million of those acres were purchased by foreign investors. While this only totals approximately three percent of all U.S. private land, it’s been more than enough to garner the attention of federal lawmakers and ICA members.

“There are already enough barriers for farmers, particularly young producers, to build and grow a profitable operation,” said Whaley. “As we look at maintaining our family farms and ultimately our food chain, we need to make sure we eliminate things that threaten our member’s way of life. We are grateful to have the support of Gov. Reynolds on this issue."

ICA appreciates the commitment to tightening restrictions on foreign ownership of agricultural land in Iowa and looks forward to working alongside Gov. Reynolds to enhance our existing laws.



Iowa Farm Bureau sets 2024 legislative priorities

Iowa Farm Bureau Federation (IFBF), the state’s largest grassroots farm organization, will address key priorities of protecting landowners and property taxpayers, the modernization of the state’s Grain Indemnity Fund and other important policies impacting Iowa’s farmers and rural communities during the 2024 legislative session.

Throughout the past year, Farm Bureau members from every county provided input on policy important to Iowa agriculture. Critical issues were voted on and prioritized to shape the organization's efforts for the 2024 Iowa legislative session.

IFBF applauds the legislature for recent successes on property tax reform and encourages seeking additional opportunities to provide property tax relief.  As tax reform continues to be a focus in Iowa, members strongly support efforts to slow the growth of property taxes.  Other property taxpayer protection policies include the state continuing to fund the Homestead Property Tax Credit and Ag Land/Family Farm Tax credits and rejecting proposals to change credits into exemptions.  

Farm Bureau members have also identified landowner protections as a 2024 legislative priority.  When constructing large infrastructure projects, such as transmission lines and pipelines, members have stated Iowa law should adequately protect landowner rights prior to approval and after construction is complete.  Currently, there is no voluntary easement threshold before projects may be granted eminent domain authority, and members have called for reaching a minimum 90% voluntary easement threshold prior to large infrastructure projects being granted eminent domain authority.

Farm Bureau will also work toward the modernization of the Grain Indemnity Fund to adequately protect farmers affected by a grain elevator failure through no fault of their own.  The Grain Indemnity Fund is a participant-funded safety net and an important risk management tool for farmers, but efforts are needed to adequately reflect modern grain prices and crop production.  Among neighboring states with an indemnification fund, Iowa has the smallest fund level and is the only state not covering credit sale contracts, which represent nearly 40% of commercial sales in the state.  

While Iowa has some of the nation’s strongest laws restricting foreign farmland ownership, Farm Bureau looks forward to working with the Governor and legislature on efforts to enhance transparency and enforcement.



Dairy Days 2024 to help producers answer the question, “Is raising too many heifers diminishing your profits?”

“How many heifers do I need and what are they costing to raise?” are two topics Iowa dairy producers will hear about during the 2024 Dairy Days in January.

Local producers can hear about this topic and more on Jan. 30 at the Northwest Iowa Dairy Day.

“Dr. Larry Tranel is the Iowa State University Extension and Outreach dairy specialist in Northeast Iowa,” said Fred Hall, local dairy specialist with ISU Extension and Outreach. “He is among the presenters for this year’s Dairy Days. Tranel will focus on three issues that can affect producer profitability and give producers tools that can help in their decision-making process.”

According to Hall, Tranel will discuss that the cost of raising heifers is higher than sale value so unless genetic value to farm compensates the difference, raising more than a small percentage extra probably decreases farm profits.

Tranel will share some helpful ISU Extension and Outreach dairy budgets that can be used to give a good indication of heifer raising costs. He will also discuss how creating value from predetermined breeding decisions can be beneficial - breeding genetically inferior cows to beef semen to increase calf value.

“With nearly 25 percent of a dairy’s production costs associated with raising heifer replacements, optimizing growth and health is important to every dairy operation,” Hall said. “We anticipate great discussion and learning during this year’s Dairy Days.”

Dairy Days will be offered Jan. 16 in Elma at Innovative Ag Service; Jan. 18 in Elkader at Johnson’s Restaurant; Jan. 23 in Kalona at the Kalona Chamber of Commerce; Jan. 25 in New Vienna at the New Vienna Community Center; and Jan. 30 at the Dordt University Ag Stewardship Center 3648 US-75, Sioux Center. Check-in for all events starts at 9:45 a.m. and the program will conclude by 2:30 p.m.

The day-long event has been developed to help dairy producers learn about current best practices supported by the latest research. All the topics will help producers make sound heifer management decisions.

In addition to Tranel, Dairy Days 2024 topics and presenters include:
    “Dairy Best Heifer: Lessons Learned and Path Forward” – Dr. Gail Carpenter, ISU
    “Decision Tools for Heifer Inventory Management” – Greg Palas, DRMS
    “Starting Your Calves on the Right Hoof” – Dr. Jardon/Jennifer Bentley, ISU

There is no cost to attend any of the Dairy Days. However, registration is encouraged to plan for noon meal and proceedings. Local sponsors will be recognized at each event.

Pre-registration is requested by the Friday before each event to reserve a meal. Register online at https://go.iastate.edu/2024DAIRYDAYS.

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.



Iowa Forage and Grassland Council Conference Set for Feb. 6

The 2024 Iowa Forage and Grassland Council conference is set for Feb. 6 in Ames. The event returns to Reiman Gardens, 1407 University Blvd., just to the southwest of Jack Trice Stadium.

Registration begins at 9:30 a.m. with a welcome and introduction at 10 a.m. Two presentations are on tap for the morning session, including experts from Iowa State University Extension and Outreach. Lunch at noon is followed by the council’s annual meeting. The two afternoon sessions run from 1-3 p.m.

Conference topics and speakers
    “A tool for the grazing revolution: virtual fencing.” Meghan Filbert, No Fence. Beef cattle grazing in harvested corn field.
    “Corn residue grazing: current recommendations and adjustments based on new data.” Mary Drewnoski, University of Nebraska—Lincoln.
    “Cultivating resilience: exploring traits and tactics with warm-season annual forage.” Shelby Gruss, forage specialist with ISU Extension and Outreach.
    “Livestock water improvement ideas from the drought.” Jeff Matthias, Iowa Natural Resources Conservation Service.

All attendees also can enter a drawing for some door prizes courtesy of the show sponsors.

The conference is open to the public for $45. IFGC members pay $30 and those who have not yet paid dues can do so during the online registration process. Preregistration is encouraged to allow for adequate meal count.

See the agenda, registration form and map to Reiman gardens on the conference website https://agribiz.swoogo.com/2024ifgc.  



Weekly Ethanol Production for 1/5/2024

According to EIA data analyzed by the Renewable Fuels Association for the week ending January 5, ethanol production inched up 1.2% to 1.062 million b/d, equivalent to 44.60 million gallons daily. Output was 12.6% more than the same week last year and 5.4% above the five-year average for the week. Still, the four-week average ethanol production rate decreased 0.3% to 1.072 million b/d, which is equivalent to an annualized rate of 16.43 billion gallons (bg).

Ethanol stocks grew 3.4% to a 38-week high of 24.4 million barrels. Stocks were 2.4% more than the same week last year and 4.4% above the five-year average. Inventories built across all regions except the Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, strengthened by 4.7% to 8.33 million b/d (127.62 bg annualized). Demand was 10.1% more than a year ago and 3.8% above the five-year average.

Conversely, refiner/blender net inputs of ethanol stepped down 0.6% to 804,000 b/d, equivalent to 12.33 bg annualized and a 52-week low. Yet, net inputs were 4.7% more than a year ago and 0.8% above the five-year average.

Ethanol exports were estimated at 157,000 b/d (6.6 million gallons/day), more than double the prior week. There were zero imports of ethanol recorded for the 16th consecutive week.



Anhydrous Leads Fertilizer Prices Lower Again

Retail fertilizer prices continue to operate on both sides of unchanged, according to retailers tracked by DTN for the first week of January 2024. For the second consecutive week, six of the eight major fertilizers were lower in price compared to last month while the remaining two fertilizers were slightly higher. DTN designates a significant move as anything 5% or more.

Once again only one fertilizer had a noteworthy price change compared to last month. Anhydrous was down 7% compared to last month with an average price of $789/ton. The remaining five fertilizers were just slightly less expensive. MAP had an average price of $812/ton, potash $513/ton, urea $534/ton, UAN28 $336/ton and UAN32 $394/ton.

Two fertilizers, meanwhile, were just slightly higher in price compared to last month. DAP had an average price of $725/ton and 10-34-0 $599/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.58/lb.N, anhydrous $0.48/lb.N, UAN28 $0.60/lb.N and UAN32 $0.62/lb.N.

All fertilizers except one are now lower by double digits compared to a year ago. MAP is 8% lower, DAP is 17% less expensive, 10-34-0 is 21% lower, urea is 28% less expensive, potash is 32% lower, anhydrous is 39% less expensive and both UAN28 and UAN32 are 41% lower compared to a year prior.



Statement by Agriculture Secretary Vilsack in Celebration of National Milk Day

Today, Agriculture Secretary Tom Vilsack offered the following statement in support of America’s dairy industry, in advance of National Milk Day, which will be celebrated on Thursday, January 11. Agriculture Secretary Vilsack today visited the Pennsylvania Farm Show in Harrisburg, Pa., which is the nation’s largest indoor agricultural event. While there, he met with several dairy farmers and business owners who are contributing to local and regional food systems in and around Pennsylvania, and announced a $26 million Regional Food Systems Infrastructure grant that will help increase capacity and resilience in middle-of-the-supply chain activities, including dairy processing.

“On National Milk Day, we celebrate the historic moment in 1878 when milk was first delivered to homes in sterilized glass bottles, marking a turning point that made milk more accessible and a vital source of nutrition for families across the country. Our dairy farmers are the unsung heroes behind every glass of milk, working tirelessly to ensure families receive essential nutrients at the dinner table. Thanks to their innovation and productivity, high-quality dairy products can be relied upon as a component of nutritious school meals, at child and adult food service programs, and by families who participate in WIC—an important, evidence-based nutrition program that is gaining new participants at historic levels. Through active support for international trade, specialized safety net programs like the Dairy Margin Coverage Program, popular conservation programs like Environmental Quality Incentives Program, dedicated Dairy Business Innovation Centers, and more, USDA is committed to helping the America’s dairy industry remain competitive, access new and better markets, and keep their family businesses in operation for the long-term. At USDA, we are honored to work alongside America's dairy producers as they provide necessary, nutritious dairy products to communities nationwide. Next time you enjoy a glass of milk, a slice of cheese, or a cup of yogurt, remember that these products are a result of the hard work and dedication of America’s dairy farmers.”

USDA’s Economic Research Service reports that in 2022, 226.46 billion pounds of milk were produced in the U.S., generating $57.51 billion. According to the International Dairy Foods Association, The U.S. dairy industry supports 3.2 million jobs.



New Frontiers in Agriculture – Let’s Get Ready for Launch!

Time is running out to secure your spot at 2024’s Commodity Classic in Houston, Texas! Early bird pricing ends on January 12, so make sure to register now to take advantage of the discounted rates for National Corn Growers Association members. This year's event promises to be bigger and better than ever, with exciting activities planned from February 28 to March 2.

New this year:
    Wednesday Welcome Reception kicks off on February 28 from 3:00 to 6:00 p.m. Held on the trade show floor, this event will provide a unique opportunity to enjoy food and beverages while getting a sneak peek at your favorite exhibitors.

    Houston features the largest number of booths and trade show space ever seen at Commodity Classic. With two levels of trade show exhibits, attendees can explore the latest and greatest in agricultural technology. Two stages will also host can't-miss education and presentations, offering valuable insights for everyone in the industry.

For those looking to explore Houston beyond the convention center, unique tours are available, including visits to the NASA Space Center, Port of Houston Boat Tour, breweries and distilleries. The deadline for tour registration is February 6, so act fast!

To register and find more information about housing, trade show details, unique tours or the Houston Rodeo, visit CommodityClassic.com. Don't wait – register now before the early bird pricing ends on January 12!