Friday April 19 Ag News

Rural Mainstreet Economy in Negative Territory Again - Farm Loans Soared to Record Level

For an eighth straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the April 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 April increased to 45.8 from 38.0 in March, or its lowest level since June 2020. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“Higher interest rates, weaker agriculture commodity prices and higher grain storage costs pushed the overall reading below growth neutral for the eighth straight month,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Farming and ranching land prices: The region’s farmland price index rose to a solid 56.5 from March’s 56.0. The farmland price index has remained above growth neutral for 53 consecutive months. “Creighton’s survey continues to point to solid, but slowing, growth in farmland prices for 2024. Approximately 17.4% of bankers reported that farmland prices expanded from March levels,” said Goss.

“Even with weaker farm conditions, only approximately 0.9% of bankers reported an upturn in farm loan delinquencies over the past six months. This is slightly below last month’s 1.0% when the same question was asked,” said Goss.

According to trade data from the International Trade Association, regional exports of agriculture goods and livestock for 2024 year-to-date were down 7.2% from the same period in 2023.

Farm equipment sales: The farm equipment sales index for April improved to a weak 47.7 from March’s 30.4, which was the lowest reading since May 2020. “This is the 10th time in the past 11 months that the index has fallen below growth neutral. Higher borrowing costs, tighter credit conditions and weaker grain prices are having a negative impact on the purchases of farm equipment,” said Goss.

Below are the state reports:
Nebraska: The Nebraska RMI for April rose to 42.7 from 38.0 in March. The state’s farmland price index for April climbed to 54.5 from 54.3 in March. Nebraska’s April new-hiring index increased to 54.2 from 50.4 in March. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up 27.3% from the same period in 2023.

Iowa: April’s RMI for the state increased to 36.7 from 34.5. Iowa’s farmland price index for April improved to 52.1 from 51.4 in March. Iowa’s new hiring index for April climbed to 52.1 from 46.8 in March. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up 16.8% from the same period in 2023.

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.

 

Statement by Mark McHargue, President, Regarding Legislature’s Failure to Act on Property Tax Relief

“We are extremely disappointed the Nebraska Legislature was unable to deliver a property tax relief measure before closing out the 2024 legislative session. Nebraskans expected more and deserved better. Today, opponents of LB 388 helped ensure that property taxes will continue to increase on Nebraskans’ homes, farms, and businesses into the future. We thank Governor Pillen, Revenue Committee Chair Lou Ann Linehan, and those senators who supported LB 388 for their work to try and provide property tax relief for hard working Nebraskans. Nebraska Farm Bureau is about finding solutions. Clearly there is more work to be done. We look forward to finding solutions with those who similarly share a true commitment to solving Nebraska’s property tax problem.”



Partnerships with NDA, USMEF help promote beef globally

As producers continues to navigate global markets, the partnership between the Nebraska Beef Council and the Nebraska Department of Agriculture remains instrumental in driving the success of the state's beef exports, showcasing Nebraska as a premier source of high-quality beef on the international stage.

A notable success involves the sponsorship of a BBQ event in Japan, funded by the Nebraska Beef Council. A representative from a major Japanese restaurant chain attended the event and, impressed by Nebraska beef, initiated discussions with import partners. Subsequent visits to Nebraska led to a partnership agreement, with the restaurant featuring Nebraska beef on its menu.

“They’ve been so pleased with the partnership in fact that they visited Nebraska again recently to see how else they can grow this relationship and hopefully grow their purchases of our beef, all because of an event that the Nebraska Beef Council help sponsor last year,” said Jordan Schlake, Nebraska Agricultural Trade Representative for the NDA.

Despite challenges such as high cattle prices and a strong dollar in 2023, US beef exports faced a decline of 14%. However, Nebraska's exports only experienced a slight 3% dip according to the USDA.

“We believe that the resiliency of our exports is due to the high quality of our product and the partnership between NDA and the Nebraska Beef Council has helped build a loyal customer base overseas that appreciates our product and continues purchasing it in large volumes even when prices are high,” said Schlake.

Reverse trade missions have also been happening more often, where foreign customers come to Nebraska to see how beef is raised and to confirm their confidence in the product.

In addition to direct promotional activities, the Nebraska Beef Council actively participates in events like the Latin America Product Showcase, where educational workshops and demonstrations highlight the benefits of beef. The Beef Council also supported a foodservice educational program which enabled USMEF, a contractor to the Nebraska Beef Council, to share new recipes, cooking techniques, and more to the foodservice industry of Japan.



Worth Ranch to Receive Nebraska Leopold Conservation Award

Worth Ranch of Springview is the recipient of the 2024 Nebraska Leopold Conservation Award®.

The award honors farmers, ranchers, and forestland owners who go above and beyond in their management of soil health, water quality and wildlife habitat on working land.

Cork and Janet Worth raise beef cattle and own the 8,000-acre Worth Ranch in Keya Paha County. The Worths will be presented with $10,000 and a crystal award at the AFAN annual meeting in November.

Sand County Foundation and national sponsor American Farmland Trust present Leopold Conservation Awards to private landowners in 27 states. In Nebraska, the award is presented with Alliance for the Future of Agriculture in Nebraska (AFAN), Cargill and the Nebraska Environmental Trust.

Given in honor of renowned conservationist Aldo Leopold, the award recognizes farmers, ranchers, and forestland owners who inspire others with their dedication to environmental improvement. In his influential 1949 book, A Sand County Almanac, Leopold called for “a land ethic,” an ethical relationship between people and the land they own and manage.

Nebraska landowners were encouraged to apply, or be nominated, for the award last year. Applications were reviewed by an independent panel of agricultural and conservation leaders.

The first Nebraska Leopold Conservation Award was presented to Wilson Ranch of Lakeside in 2006. The 2023 recipient was Trumler Ranch of Rockville. To view profiles of each award recipient visit www.sandcountyfoundation.org/Nebraska.

The Leopold Conservation Award Program in Nebraska is made possible thanks to the generous support of American Farmland Trust, Cargill, AFAN, Nebraska Environmental Trust, Sand County Foundation, Farm Credit Services of America, USDA-Natural Resources Conservation Service, Audubon Great Plains, Green Cover Seed, The Lyle Sittler Memorial Fund, McDonald’s, Nebraska Department of Agriculture, Nebraska Land Trust, Rainwater Basin Joint Venture, Sandhills Task Force, and World Wildlife Fund-Northern Great Plains.

For more information on the award, visit www.leopoldconservationaward.org.

ABOUT WORTH RANCH
When Malvern “Cork” Worth purchased his first piece of land in 1962, he recognized the need for change.

The 1,424 acres in Keya Paha County was a far cry from the productive grassland it is today. It had been overstocked with beef cattle and horses with poor fencing and water distribution.

Cork’s intuition told him his cattle needed to be rotated through more than one pasture during the grazing season. He would embrace and improve upon that concept once he and wife Janet began practicing managed grazing in the 1970s.

“Ten acres to the cow, and never take more than 50 percent of the grass in a given year” was the hard-and-fast stocking rate they established. This simple yet stern method of grazing management has created a resilient deep-rooted plant community that can rapidly recover from drought.

“We could have run more cattle over the years but trying to squeeze every last productive dollar out of your grazing resource year after year is a recipe for failure,” Cork explained.

The Worths saw growing native prairie and perennial grass as the best use of their land from economic and environmental standpoints. With grass their only marketable commodity they stopped raising hogs, sheep, and dairy cattle to focus solely on Angus beef cattle.

“We wanted to develop some of the best Angus cattle in the industry, and it wasn’t even a question that we had to have the best grass resource to do this,” Janet said.

As the Worths expanded their ranch to 8,000 acres they installed a livestock water pipeline system and cross fencing that allows them to move cattle between 40 pastures. Each has two water tanks fed by a combination of electric submersible wells, windmills, and solar wells. The rotational grazing system has created a mosaic of habitat types for beneficial pollinators, turkeys, grassland birds, and deer.

More than 22,000 trees have been planted on Worth Ranch since 1971. Trees control wind erosion, enhance wildlife habitat, and provide livestock protection in the form of shelter belts. Drip irrigation and mulch to conserve water were added on several of the belts to encourage growth and vigor of trees. There’s also hardly a noxious weed to be found on Worth Ranch thanks to their early detection/rapid response weed management method.

Through innovative conservation practices, Worth Ranch has been able to endure climate extremes. Its well-managed and conservatively stocked pastures and meadowlands have allowed the Worths to maintain their cattle numbers during hot, dry summers without relying on outside sources for winter feed.

Through meticulous breeding and performance records, the Worths established a productive and profitable Angus herd that has helped them deal with the ebbs and flows of the ever-changing cattle market.

In recent years they have taken a step back in the beef business to help the next generation of ranchers. While downsizing their own herd, they pasture cattle for five local families during the grazing season. This allows the Worths to continue their grass management efforts while reducing their workload during the winter. It also creates awareness of how sound conservation can create abundant, resilient grassland on their own ranches.

ACCOLADES
Steve Martin, Executive Director of the Alliance for the Future of Agriculture in Nebraska (AFAN), comments the Worth Ranch highlighting its remarkable testament to the rewards of prioritizing land stewardship. “By defying conventional norms and nurturing their land with care, the Worth family has not only enhanced profitability but also ensured the sustainability of their land for generations to come.”

“As the national sponsor for Sand County Foundation’s Leopold Conservation Award, American Farmland Trust celebrates the hard work and dedication of the Nebraska recipient,” said John Piotti, AFT President and CEO. “At AFT we believe that conservation in agriculture requires a focus on the land, the practices and the people and this award recognizes the integral role of all three.”

“The recipients of this award are examples of how Aldo Leopold’s land ethic is alive and well today. Their dedication to conservation shows how individuals can improve the health of the land while producing food and fiber,” said Kevin McAleese, Sand County Foundation President and CEO.



Nebraska Craft Brewery Board Seeks Project Proposals to Help Grow Industry

“Grow Local. Brew Local. Buy Local.” That’s the mission statement of the Nebraska Craft Brewery Board and the inspiration behind growing the state’s craft brewery industry. To help achieve that mission, the Nebraska Craft Brewery Board is seeking project proposals from growers, industry organizations, state and local agencies, educational groups, and others to fund research, development, and marketing projects in Nebraska’s craft brewing industry. This year, the Board anticipates allocating approximately $120,000 in grants to fund such projects. The deadline to submit proposals is April 30, 2024.

“Craft breweries are popular attractions in Nebraska because people want to taste unique flavors, connect with friends and families, and support local businesses,” said Josh Christensen, Chair of the Nebraska Craft Brewery Board. “Craft breweries are great for the economy, too, because they create jobs, add tax revenue, and attract tourism. The grants the Nebraska Craft Brewery Board are offering represent a big opportunity for those interested in growing Nebraska’s craft beer industry.”

In Nebraska, craft breweries are defined as small, independent breweries producing less than 20,000 barrels of beer per year. There are approximately 50 licensed craft breweries in Nebraska.

Those interested in receiving grant funds must submit a detailed proposal for review and approval by the Nebraska Craft Brewery Board. Applications, instructions, program guidelines, and performance measures are available online at craftbreweryboard.nebraska.gov/application-instructions and must be submitted by April 30, 2024.

Project proposals must clearly explain how the funds will be used and how they will benefit the craft brewery industry in Nebraska. All projects will begin no earlier than July 1, 2024, and end no later than June 30, 2025. Grant applicants will be asked to present their projects to the Nebraska Craft Brewery Board at the next meeting, May 16, to give Board members an opportunity to ask questions. Nebraska Craft Brewery Board members represent different aspects of the craft beer industry including brewers, manufacturers, distributors, consumers, and farmers growing barley and hops.

For more information about project proposals and the grant process, contact Casey Foster, Nebraska Department of Agriculture, at 402-471-6857, or by email at casey.foster@nebraska.gov.



EPA Publishes Draft Herbicide Strategy
ASA

EPA this week announced an update to its Herbicide Strategy, which overall is a positive development in the ongoing dialogue with the agency.

Highlights of the updated Herbicide Strategy deemed positive include:
    Simplified Approach: The recent update signals positive changes, notably the simplification of the system by moving away from the points-based approach in favor of classifying herbicides under a tier-based system. With the revised approach, herbicides would require “none, low, medium, or high” levels of mitigation to prevent runoff. This shift would make navigating the strategy easier for growers and applicators.
    Reducing Compliance Obligations: EPA is reducing obligations in certain instances in the update. Growers producing in flat or dry areas where runoff risks are minimal are likely to experience little to no mitigations under the update. In a major point of relief, EPA clarified that it does not intend to impose additional restrictions on tile drainage but instead intends to offer tile drainage as an eligible conservation measure for compliance in the future. Also of note, EPA stated it is reconsidering its approach to assessing spray drift risk and indicated it will revise its drift models, include additional areas that can be included in buffers (e.g., roads, managed wetlands), and add additional mitigations to reduce buffer sizes.
    New Mitigation Measures: The agency also clarified that it will immediately add an additional nine measures (e.g., reservoir tillage, soil carbon amendments) to its mitigation menu by which pesticide users can comply with the runoff reduction requirements. While these practices are largely aimed at providing additional measures for specialty crops, they may still have utility for row crop farmers in some instances. EPA also stated it may be providing subclasses of mitigations (e.g., permitting different sized buffers that count differently toward compliance) so there is greater flexibility for pesticide users to comply.

In addition to announcing these changes, EPA reaffirmed its plans to refine pesticide use limitation areas (PULA) maps to narrow areas affected by the ESA proposals and will continue to build out additional compliance options through an upcoming EPA and USDA workshop.

The American Soybean Association acknowledges the positive strides reflected in these updates, yet it's important to note soy’s concerns have not been addressed fully. The fundamental aspects of how EPA assesses risk to species and the necessity for mitigation largely remain unchanged. Concerns also remain about the cost and burdens implementation could impose on growers. ASA remains committed to engaging with EPA and other policymakers to advocate for risk- and science-based regulations that will be workable for agriculture.



Six National Commodity Groups Call on U.S. International Trade Commission to Nix Petition Related to Duties on Herbicides

Six of the nation’s major commodity groups, including the National Corn Growers Association, sent a letter to the U.S. International Trade Commission today encouraging it to vote negative in advancing a petition by Corteva Agribusiness to place antidumping and countervailing duties on imports of the herbicide 2,4-D shipped from India and China.

The letter said if the U.S. International Trade Commission votes to continue the case beyond the preliminary stage, farmers across the country could soon find it difficult to access critical supplies.

The letter, signed by leaders from the American Soybean Association, National Association of Wheat Growers, National Barley Growers Association, National Corn Growers Association, National Sorghum Producers and the U.S. Durum Growers Association, expressed concerns that the petition could hinder imports and cause herbicide shortages.

“The imports covered by this case are the large majority of sources of supply other than Corteva, which is the only U.S. supplier,” the letter said. “To put it simply, America’s farmers cannot rely upon a sole domestic supplier of 2,4-D to meet nearly all the market’s needs, and imports are needed to meet the majority of market needs.”

Duties on 2,4-D imports from the two countries would intensify what is already a difficult period for many growers as key input costs continue to increase.

The U.S. Department of Agriculture is projecting record high farm production cash expenses for 2024. At the same time, crop values are declining. USDA projects total cash receipts for crops in 2024 will be 11.7% lower than 2022.

The letter noted that the petition, which seeks to limit imports of a critical farm input, only makes a rough environment even more challenging.
 
“There is no way for farmers to make up for the additional costs, as we are price takers, not makers, in selling crops,” the leaders said. “If this case moves forward, we will be forced to make budget cuts that can impact our operations as well as our local economies. To put it simply, the weight of a dispute between multinational companies would fall directly on the shoulders of growers.”
 
The ITC is scheduled to vote on its preliminary determination in this case on May 17, 2024.



BLM Rule Threatens Multiple Use Management of Public Lands

Thursday, the National Cattlemen’s Beef Association (NCBA) and Public Lands Council (PLC) expressed serious concerns about the Bureau of Land Management’s (BLM) final “Conservation and Landscape Health” rule that reimagines the agency’s requirements to manage lands for multiple uses, including livestock grazing.
 
“The BLM has a statutory responsibility to ensure multiple use on our nation’s public lands, which includes livestock grazing. It is extremely concerning that this rule makes serious additions to the leasing structure for federal lands without authorization or direction from Congress. Changes that aren’t based in law not only compromise the security of grazing on the landscape but make cohesive management much more challenging,” said NCBA President and Wyoming rancher Mark Eisele. “Ranchers have always and will always be serious partners in conservation and sensible land management but after a year of feedback from agricultural organizations and local stakeholders, BLM has decided to move forward with the most concerning parts of this proposal.”
 
The final rule runs counter to the agency’s multiple use mandate under the Federal Land Policy and Management Act of 1976 (FLPMA). According to FLPMA, the BLM is required to balance the multiple uses of public lands including recreation, energy, mining, timber, and grazing. The “Conservation and Landscape Health” rule rearranges agency priorities by putting a new, single use on equal footing with long established uses that Congress explicitly directed.  The rule also places an outsized focus on the use of restrictive Areas of Critical Environmental Concern (ACEC) designations that have compromised land and water health across the West. The result is a framework that gives the BLM more restrictive land management, increased conflict on the landscape, and an increased difficulty in delivering on the agency mission and programs to stakeholders across the West.
 
“The work ranchers and permittees do every day is conservation and crucial to landscape health across the West. Our priority continues to be defending grazing across the West, and despite our repeated warnings to the BLM, the agency is forging ahead with a rule that threatens their ability to make sure even the most basic of functions can be delivered in a timely way,” said PLC President Mark Roeber, a Colorado rancher and federal grazing permittee.  “The devil is in the details and what we’ve seen so far is a rule that makes engagement in sage grouse discussions and others so much more complicated. The timing of this rule disenfranchises permittees who are working to be good partners and engage in other conservation efforts by increasing uncertainty and liability from extremists who only want to bully livestock producers off of working landscapes.”
 
NCBA, PLC, and more than 60 state and national agricultural groups previously submitted comments to the BLM highlighting concerns that this rule would upend the relationship between federal agencies and grazing permittees, opening the door for public lands grazing to be removed from the land entirely. Federal rangelands generate more than $3 billion annually in ecosystem services, which amounts to more than $20 per public acre of land grazed by cattle or sheep. When accounting for appropriated tax dollars and grazing fees paid by ranchers, that’s a net return of more than $19 on each grazed acre. Ecosystem services like wildfire mitigation, cutting down on invasive species, sequestering carbon, improving wildlife habitat, and preserving open green space for recreation are essential contributions of the Western ranching industry – not to mention the $2.1 billion in economic output attributable to livestock grazing on BLM land.