Monday February 26 Ag News

 NEBRASKA CATTLE ON FEED DOWN 1%

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.55 million cattle on feed on February 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 1% from last year. Placements during January totaled 505,000 head, up 3% from 2023. Fed cattle marketings for the month of January totaled 490,000 head, down 2% from last year. Other disappearance during January totaled 25,000 head, up 5,000 head from last year.



IOWA CATTLE ON FEED

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 640,000 head on February 1, 2024, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was up 2 percent from January but down 2 percent from February 1, 2023. Iowa feedlots with a capacity of less than 1,000 head had 540,000 head on feed, down 2 percent from last month but up 3 percent from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,180,000 head, unchanged from last month but up slightly from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during January 2024 totaled 115,000 head, up 39 percent from December and up 10 percent from January 2023. Feedlots with a capacity of less than 1,000 head placed 59,000 head, up 7 percent from December but down 6 percent from January 2023. Placements for all feedlots in Iowa totaled 174,000 head, up 26 percent from December and up 4 percent from January 2023.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during January 2024 totaled 103,000 head, up 12 percent from December but unchanged from January 2023. Feedlots with a capacity of less than 1,000 head marketed 64,000 head, up 88 percent from December and up 42 percent from January 2023. Marketings for all feedlots in Iowa were 167,000 head, up 33 percent from December and up 13 percent from January 2023. Other disappearance from all feedlots in Iowa totaled 7,000 head.



United States Cattle on Feed Up Slightly
    
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.8 million head on February 1, 2024. The inventory was slightly above February 1, 2023.

Placements in feedlots during January totaled 1.79 million head, 7 percent below 2023. Net placements were 1.71 million head. During January, placements of cattle and calves weighing less than 600 pounds were 370,000 head, 600-699 pounds were 395,000 head, 700-799 pounds were 475,000 head, 800-899 pounds were 377,000 head, 900-999 pounds were 105,000 head, and 1,000 pounds and greater were 70,000 head.

Marketings of fed cattle during January totaled 1.84 million head, slightly below 2023.  Other disappearance totaled 81,000 head during January, 29 percent above 2023.

Cattle on Feed and Annual Size Group Estimates
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head represented 82.7 percent of all cattle and calves on feed in the United States on January 1, 2024. This is comparable to the 82.6 percent on January 1, 2023.

Marketings of fed cattle for feedlots with capacity of 1,000 or more head during 2023 represented 87.3 percent of total cattle marketed from all feedlots in the United States, up slightly from 87.2 percent during 2022.



NeFB Legislative Conference and BBQ & Brews Returns with Success

Farmers and ranchers gathered in Lincoln last week for the Nebraska Farm Bureau Legislative Conference. The event presented a unique opportunity for members of the agricultural community to come together and explore current policy issues impacting agriculture, advocate for shared interests, and engage directly with policymakers on critical issues affecting Nebraska’s farmers and ranchers.

Conference attendees were given exclusive insight into the legislative bills that the Nebraska Farm Bureau is currently focusing on, including their positions of support or opposition. The NEFB Public Policy Team members also shared their insights on how tax reform could be tackled during this session. After that, farmers and ranchers made their way to the Capitol to interact with their senators and discuss priority issues.

Sen. Teresa Ibach and Sen. Mike Jacobsen spoke on a panel to attendees about their priority bills and other top legislative issues, including the path forward on reducing property taxes in Nebraska. Nebraska’s Attorney General Mike Hilgers gave insight into regulatory issues that could affect Nebraska’s farmers, ranchers, and rural communities. The Perkins County Canal project, Waters of the U.S., and the loss of dicamba were top topics Hilgers spoke on and talked through the process of how the state could file a lawsuit in relation to these issues.

Other speakers to the group included Director of Agriculture Sherry Vinton, Speaker of the Legislature John Arch, State Treasurer Tom Briese, and NEFB Senior Director of National Affairs Jordan Dux, who provided an updated on federal issues and the current state of the U.S. Congress. The day wrapped up with the annual NEFB BBQ & Brews event. Nebraska Farm Bureau members were able to socialize with each other and elected officials.



CAP Webinar: 2024 Crop Insurance Prices and Decision Making
Date & Time - Feb 29, 2024 12:00 PM

Ken Harrison, Crop Insurance Professional,
Cory Walters, Associate Professor, UNL Agricultural Economics.

In this webinar, we will discuss projected prices for the upcoming crop year, the importance of projected prices in managing risk exposure, different insurance contract options, and what different contract options can and cannot do to manage 2024 risk.

Ken Harrison is a lifelong participant in the crop insurance industry.  Beginning as a farm kid in HS, a crop insurance agent, moving into AIP 5 state territory management, then to Kansas City for 40 years working in crop insurance program development and evaluation.  During his tenure at RMA he worked on a national level and RMA key personnel in development of many insurance tools.  Developed the first revenue policy, county yield policy, trees, Identity preserved crops and many others.  

Register and get more information at https://cap.unl.edu/webinars.  



Gov. Pillen Welcomes Year-Round E15 Approval for Nebraska

Governor Jim Pillen expressed excitement on behalf of Nebraska motorists, upon news that the U.S. Environmental Protection Agency (EPA) has approved the year-round sale of E-15. The EPA’s final rule is effective April 28, 2025 and applies to eight states, including Nebraska.   

“This decision is a win for agriculture, ethanol production and for Nebraska consumers,” said Gov. Pillen. “Ethanol is a vital part of our economy. We will continue to ensure consumers have a low-cost option at the pump. Today’s actions will result in real savings for Nebraska drivers while producing fewer carbon emissions.”



NPPC: There’s ‘No Legitimate Reason’ for Farm Emissions Reporting Rule
 
The National Pork Producers Council led a coalition of 48 state and national agricultural organizations in submitting comments on the U.S. Environmental Protection Agency’s proposal to require livestock and poultry farmers to report routine air emissions from animal waste. EPA is attempting to reinstate the reporting requirements under the Emergency Planning and Community Right to Know Act (EPCRA).  
 
EPCRA requires certain entities to notify state and local authorities about accidental spills and releases of hazardous materials and chemicals. Initially, EPA exempted agricultural producers from reporting routine farm emissions from the natural breakdown of animal manure, but in 2017 a federal Appeals court rejected the regulatory exemption. NPPC, along with partners in animal agriculture, immediately sought relief from Congress, which passed the Fair Agricultural Reporting Method (FARM) Act of 2018. The FARM Act once again exempted reporting of emissions. However, following EPA’s implementation, activist groups filed suit against EPA, which agreed to again examine the impact of routine farm emissions and whether new rules are necessary.
 
“There is no legitimate reason for requiring [farmers] to report to state and local emergency response authorities estimates of the amount of air emissions from their animals’ manure,” the agricultural organizations said in their comments.  
 
NPPC and other agricultural groups repeatedly have cited EPA’s own reasoning for exempting agriculture from the reporting requirements, noting that while farm emissions might exceed thresholds that would trigger responses under the reporting law, such responses would be “unnecessary, impractical and unlikely.” Agitating a manure pit, for example, could result in the release of ammonia and hydrogen sulfide, but the gases would dissipate quickly, and it would not constitute an emergency requiring the attention of first responders.   
 
Under EPCRA, livestock farmers would be required to estimate the emissions of certain gases. However, EPA has yet to finalize reliable, scientifically sound estimating methodologies that accurately represent the air emissions from animal manure at modern livestock farms using best management practices. Additionally, farmers could be subject to liabilities resulting from differing interpretations of the information called for in the reports, exposing them to potential civil penalties or litigation.



U.S. Agriculture Had Trade Deficit in Fiscal 2023
 
While exports of U.S. pork set a new value record in 2023 at $8.16 billion, other sectors of U.S. agriculture didn’t fare as well last year. Still, U.S. Trade Representative (USTR) Katherine Tai recently downplayed the “slight trade deficit” in U.S. farm goods in remarks at the U.S. Department of Agriculture’s 100th annual Outlook Forum.
 
USDA estimated a fiscal 2023 – Oct. 1, 2022, to Sept. 30, 2023 – agricultural trade deficit of $16.6 billion, only the fourth time over the past 55 years the balance of trade in farm goods has been in the red. The agency is forecasting a bigger deficit for fiscal 2024 before the agricultural trade gap begins narrowing.
 
While Tai said the deficits “should not be cause for alarm,” Sen. John Boozman (R-AR), ranking member on the Senate Committee on Agriculture, Nutrition, and Forestry, said the Biden administration’s lack of a trade agenda has hurt U.S. farmers. He pointed out in a Feb. 12 weekly column that the administration has “no new trade deals under negotiation.”



Agriculture Trade Caucus Leaders, 24 Members Urge Reduction of Trade Barriers Holding Back Producers

Co-Chairs of the Agriculture Trade Caucus, Reps. Adrian Smith (NE-03), Jimmy Panetta (CA-19), Dusty Johnson (SD-AL), and Jim Costa (CA-21) led 24 of their House colleagues in urging the Biden Administration to make agriculture a priority in its trade agenda by reducing tariff and non-tariff barriers for American agricultural exports.

The Members encourage the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) to seek enforceable agreements that open markets and reduce existing barriers through bilateral and multilateral engagement. The lawmakers emphasize the need for agreements that lower tariffs, ensure sanitary and phytosanitary (SPS) regulations are science-based, transparent, and consistent, and eliminate the abuse of geographical indicators in the food sector.
 
“U.S. farmers and ranchers can feed the world, but tariffs and discriminatory barriers aimed at undermining American competitiveness remain a challenge,” the Members wrote. “There is much work to do around the world to expand market access for U.S. producers and raise global sustainability, environmental, labor, and nutrition standards. The Administration should lean into these agreements and demonstrate leadership using all the tools at its disposal, including negotiating agreements that lower tariffs and empower real enforcement.”

The Members concluded, “Maintaining the status quo will only put American agriculture further and further behind as our competitors aggressively pursue such opportunities.”

The recently launched Agriculture Trade Caucus is actively working to advance and promote policies vital to U.S. agriculture, including boosting agricultural exports, facilitating food and agriculture trade, and knocking down unnecessary trade barriers.

Additional signers include; Reps. Mike Thompson (CA-04), Glenn “GT” Thompson (PA-15), Josh Harder (CA-09), Don Bacon (NE-02), Don Davis (NC-01), John Duarte (CA-13), Andrea Salinas (OR-06), Mary Miller (IL-15), Elissa Slotkin (MI-07), Mark Alford (MO-04), Dan Kildee (MI-08), Ashley Hinson (IA-02), Kelly Armstrong (ND-AL), Drew Ferguson (GA-03), John Moolenaar (MI-02), Darin LaHood (IL-16), Brad Finstad (MN-01), Doug LaMalfa (CA-01), Michelle Fischbach (MN-07), Randy Feenstra (IA-04), Beth Van Duyne (TX-24), Gregory Murphy, M.D. (NC-03), Jim Baird (IN-04), and Zach Nunn (IA-03).



Dairy Producers Can Enroll for 2024 Dairy Margin Coverage Beginning Feb. 28

Starting next Wednesday, dairy producers will be able to enroll for 2024 Dairy Margin Coverage (DMC), an important safety net program offered through the U.S. Department of Agriculture (USDA) that provides producers with price support to help offset milk and feed price differences. This year’s DMC signup begins Feb. 28, 2024, and ends April 29, 2024. For those who sign up for 2024 DMC coverage, payments may begin as soon as March 4, 2024, for any payments that triggered in January 2024.

USDA’s Farm Service Agency (FSA) has revised the regulations for DMC to allow eligible dairy operations to make a one-time adjustment to established production history. This adjustment will be accomplished by combining previously established supplemental production history with DMC production history for those dairy operations that participated in Supplemental Dairy Margin Coverage during a prior coverage year. DMC has also been authorized through calendar year 2024. Congress passed a 2018 Farm Bill extension requiring these regulatory changes to the program.

“FSA is announcing the sign up for 2024 Dairy Margin Coverage. We encourage producers to enroll in this important safety net program. In reviewing 2023 margins and the more than $1.2 billion in Dairy Margin Coverage payments issued to producers, Dairy Margin Coverage is proven to be a program to reduce risk for our dairy producers,” said FSA Administrator Zach Ducheneaux. “If 2023 taught us anything, it’s that we honestly have no idea what will happen in the market in any given year. Producers who took advantage of this affordable risk management tool for the 2023 program year, were able to mitigate some financial impacts on their operations. At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a relatively inexpensive investment in a true sense of security and peace of mind.”

DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.  In 2023, Dairy Margin Coverage payments triggered in 11 months including two months, June and July, where the margin fell below the catastrophic level of $4.00 per hundredweight, a first for Dairy Margin Coverage or its predecessor Margin Protection Program.

2024 DMC Coverage and Premium Fees
FSA has revised DMC regulations to extend coverage for calendar year 2024, which is retroactive to Jan. 1, 2024, and to provide an adjustment to the production history for dairy operations with less than 5 million pounds of production. In previous years, smaller dairy operations could establish a supplemental production history and receive Supplemental Dairy Margin Coverage. For 2024, dairy producers can establish one adjusted base production history through DMC for each participating dairy operation to better reflect the operation’s current production.

For 2024 DMC enrollment, dairy operations that established supplemental production history through Supplemental Dairy Margin Coverage for coverage years 2021 through 2023, will combine the supplemental production history with established production history for one adjusted base production history.  

For dairy operations enrolled in 2023 DMC under a multi-year lock-in contract, lock-in eligibility will be extended until Dec. 31, 2024. In addition, dairy operations enrolled in multi-year lock-in contracts are eligible for the discounted DMC premium rate during the 2024 coverage year. To confirm 2024 DMC lock-in coverage or opt out in favor of an annual contract for 2024, dairy operations having lock-in contracts must enroll during the 2024 DMC enrollment period.     

DMC offers different levels of coverage, even an option that is free to producers, minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.  

DMC Payments
DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses.  These updated feed calculations use 100% premium alfalfa hay.



NMPF Urges DMC Signup as USDA Announces Enrollment
President & CEO Gregg Doud:

“Dairy farmers are pleased to finally have the certainty of knowing when the Dairy Margin Coverage (DMC) program signup is beginning, and NMPF urges every dairy farmer to strongly consider signing up. DMC itself is improved from the previous farm bill, thanks to the permanent incorporation of updated production histories in the program, and recent low producer margins underscore just how critical DMC is for dairy farms of all sizes. We thank Congress for making this important change and are grateful for USDA’s work in rolling out this updated program for farmers.

“NMPF is eager to assist producers in any way they can with this program. We also look forward to working to ensure that farmers receive what they need even more – a new farm bill that provides certainty for the next several years, and not just 2024.”

USDA announced today that the 2024 Dairy Margin Coverage sign-up will open Feb. 28 and run through April 29.