Thursday April 04 Ag News

 Kurt Kechely Memorial Endowment Fuels Students' Entrepreneurial Spirit

The Nebraska FFA Foundation is honored to recognize business and community leader, Kurt Kechely, through an endowment to honor his legacy.

The Kurt Kechely Memorial Endowment will provide funding for Entrepreneurship Supervised Agriculture Experiences (SAE) for FFA members of the Norris and Lyons-Decatur FFA Chapters. The Endowment will also support the development of School-Based Enterprises for the Norris and Lyons-Decatur FFA Chapters.

The Endowment, established by business partners and close family friends of Kechely, Ron and Lisa Preston Family, is intended to foster a spirit of entrepreneurship for the agriculture education students participating in the local communities Kechely was involved with.

Lisa Preston wrote, “Kurt Kechely had a very strong passion and desire to help individuals reach their full potential in both their personal and professional lives.” She continued, “Kurt was passionate about individuals investing in themselves and the life long positive effect that it came with.” At a young age Kurt was known for his entrepreneurial spirit,” said friend and business partner Ron Preston. “He was very adamant about developing ways to not only improve his life, but also helping others along their way. Kurt felt strongly about the teaching and educational side of what it truly means to be an entrepreneur and strived to pass his knowledge to everyone he could.”

“The Foundation Board is honored to establish an endowment in memory of Mr. Kechely. He exemplified many qualities we hope for FFA members to gain, such as an entrepreneurial spirit and investing in communities,” says Stacey Agnew, Executive Director, Nebraska FFA Foundation.



Nebraska farm income projected to fall in 2024

Nebraska’s net farm income is projected to fall to $6 billion in 2024 and average $6.3 billion per year across the next decade, according to a new report from the Rural and Farm Finance Policy Analysis Center (RaFF) at the University of Missouri, produced in conjunction with the Center for Agricultural Profitability at the University of Nebraska-Lincoln.

While U.S. farm income projections topped a 2021 record with a new record in 2022 before falling in 2023, Nebraska net farm income took a fall in 2022, to $6.6 billion, before partially rebounding in 2023, to $7.2 billion.

“Producers are feeling the pinch of declining farm income in 2023, with a further drop expected in 2024, but the projection to fall to $6 billion this year is a still a relatively strong farm income number, compared to the past decade and builds on a solid financial position for agriculture in the state as a whole,” said Brad Lubben, an extension agricultural policy specialist with the Center for Agricultural Profitability and a contributor to the report.

The projected decline is attributed to a downturn in crop receipts in the state — due to lower crop prices in 2023 — that look to fall further in 2024. Livestock receipts grew in 2023 on the strength of cattle prices but look to decline in 2024 with reduced cattle marketings and further declines in other livestock commodities, the report said.

While production expenses remained high in 2023, the report projects that the costs of feed, fertilizer, and fuel, along with interest rates, are expected to drop in 2024, helping to offset some of the impact of lower commodity receipts in Nebraska.

Other highlights from the report include:
    After persistent drought conditions in Nebraska, the forecast of average yields in 2024 results in increases in crop production. Despite increased production projected in 2024, lower commodity prices are expected to reduce 2024 crop receipts by 7%, with projections indicating further reductions in 2025 and 2026.
    Corn planted acreage is anticipated to shrink 240,000 acres in 2024, but an expected return to trend yields allows corn production to increase this year. However, lower corn prices are expected to reduce receipts by $1 billion in 2024.
    Soybean acres climb in 2024, with planted area projected to increase by roughly 472,000 acres from 2023. Higher yields drive production higher, but lower prices cause soybean receipts to decline slightly in 2024.
    After experiencing herd liquidation in 2022, Nebraska cattle and calf inventory fell again during 2023. With improved forage conditions, cattle inventory is projected to grow modestly during 2024.
    Despite higher prices, declining marketings are projected to cause cattle and calf receipts to drop an estimated $0.7 billion in 2024. Total cattle marketings are forecast to decline nearly 6% from 2023. Cattle prices are projected to peak in 2026 and marketings begin to increase in 2025.

The spring 2024 farm income outlook is co-published by the University of Nebraska-Lincoln Center for Agricultural Profitability and RaFF at the University of Missouri, which provides objective policy analysis and informs decision-makers on issues affecting farm and rural finances. The center collaborates with a number of states to develop farm income projections with local expertise.

The Nebraska Farm Income Outlook report is available at https://cap.unl.edu/farm-income.

A webinar covering 2024 Nebraska and U.S. Farm income and outlook will be held at noon Central time on April 18, with registration accessible on the same page.



Kobza finds own path in industry, now recognized as Trailblazer by NCBA

It was the kindness of a family friend that helped Anna Kobza find her way into the agriculture industry by loaning two heifers for a 4-H project one summer. Ever since, Kobza has paved her own way in the industry to learn everything she could about beef production. Today, Kobza is pursuing an animal science doctoral degree while advocating for the beef industry via Instagram, where she has more than 90,000 followers. Her advocacy and leadership have secured her in a place in the National Cattlemen’s Beef Association’s Trailblazers program.

Kobza, originally from David City, Nebraska, is among 10 up-and-coming beef industry leaders selected to serve as spokespeople for the industry. The cohort will receive advanced training to become expert communicators in the beef industry while representing the industry on the state and local levels.

“To even be considered for trailblazers among 50 applicants is a huge honor,” Kobza said. “Being accepted, I feel like a valued part of this industry, and I also feel a huge responsibility to represent the Nebraska beef industry and its producers well.”

Every step in Kobza’s path through the industry played an important role in getting her to where she is today. Her unique experience in 4-H and time in FFA led her to explore different career paths in the industry. When thinking of her future career, the University of Nebraska- Lincoln was the next step Kobza needed.

While studying animal science and pursuing minors in the Engler Agribusiness Entrepreneurship program and Krutsinger Beef Industry Scholars program, Kobza found hands-on experience while becoming more familiar with the industry and its people.

“The University of Nebraska- Lincoln does a very good job of providing really good practical experience that is important to know in a classroom setting, but that you can also extend to your career in the industry, academia, or wherever you end up going,” Kobza said.

The faculty at the university played an influential role as Kobza began looking at furthering her academic career. She chose West Texas A&M University to pursue her master’s degree before returning to UNL for her Ph.D. and to work with specific faculty members that only the university could offer.

While spending many hours in the lab and around different cattle for research, Kobza began showing different behind-the-scenes perspectives to her following on the social media platform, Instagram. Her original approach to reaching consumers soon shifted to reaching an audience with a background in agriculture to help them learn how to personally reach consumers themselves.

“For me, I really focus on cattle feeding and that is because I saw a lack of representation for the cattle feeder among the ag influencers that did exist,” Kobza said. “The farmer and the rancher were well represented, but no one was representing the cattle feeder. That is something that I have really become passionate about in the last couple of years is making sure they are represented and are able to have a voice among all the noise that is out there.”

By representing the beef industry as an NCBA Trailblazer, Kobza’s voice and influence in the industry only continue to grow stronger by advocating for the cattle feeder and finding innovative answers for producers through her research at the university.

“The Trailblazers program is an opportunity to really further develop communication skills that I think are so important if you want to represent an industry, and to build my network with producers from across the nation,” Kobza said.



PSC STATEMENT ON SURRENDER OF GRAIN WAREHOUSE LICENSE GW-340

Statement from Commission Chair Dan Watermeier on the surrendering of Grain Warehouse License GW-340.

“The PSC Grain Department has worked closely with Union Grain Company (GW-340 - St. Libory, Nebraska), regarding its grain warehouse license,” said Commission Chair Dan Watermeier. “With Union Grain voluntarily surrendering its license, the Commission will now work directly with producers who have grain stored at the facility.”

On April 2, 2024, Union Grain Company voluntarily surrendered its grain warehouse license to the Commission. Pursuant to Neb. Admin. Code, Title 291, Ch. 8 § 002.18B the Commission finds that Union Grain Company’s warehouse should be closed following the surrender of its license. Furthermore, the Commission finds that it should take title to all grain in storage as of the date of this order in trust for distribution on a pro rata basis to all valid owners, depositors or storers of grain who are holders of evidence of ownership of grain.

The Commission finds that all individuals holding evidence of ownership of grain previously warehoused by Union Grain Company are required to submit a claim form to the Commission before any grain or proceeds from the sale of grain will be distributed. The Commission will make available the claim form to be completed and returned to the Commission. Once the Commission has confirmed receipt of the claim form, and it has been filled out to the satisfaction of the Commission, the Commission will contact the claimant to discuss distribution of its grain based on the approved
claim.



CHS reports second quarter fiscal year 2024 earnings

CHS Inc., the nation’s leading agribusiness cooperative, today released results for its second quarter ended Feb. 29, 2024. The company reported quarterly net income of $170.3 million and revenues of $9.1 billion compared to net income of $292.3 million and revenues of $11.3 billion in the second quarter of fiscal year 2023. For the first six months of fiscal year 2024, the company reported net income of $693.2 million and revenues of $20.5 billion compared to record net income of $1.1 billion and record revenues of $24.1 billion in the first half of fiscal year 2023.

Second quarter fiscal year 2024 highlights:
    Performance was solid across our segments, although earnings were down from the record second quarter of fiscal year 2023.
    In our Ag segment, earnings rose as agronomy markets were stronger compared to the prior year and grain and oilseed margins were stable.
    In our Energy segment, margins declined from the highs in the prior year due to changing market conditions including the impact of a historically warm winter.
    Equity method investments continued to perform well, led by our CF Nitrogen investment.

"The first six months of our fiscal year have delivered overall good financial results,” said Jay Debertin, president and CEO of CHS Inc. "Our supply chain investments and well-diversified portfolio, empowered by our people and technology, are helping us perform well as we connect farmers and local cooperatives with the inputs and services they need to help feed the world."

Energy
Pretax earnings of $51.6 million for the second quarter of fiscal year 2024 represent a $213.2 million decrease versus the prior year period and reflect:
    Decreased refining margins due to lower market prices and less favorable pricing on heavy Canadian crude oil, partially offset by a lower cost for renewable fuel credits
    Lower margins for propane due to global market conditions
    Reduced demand for propane and refined fuels, primarily driven by warm weather conditions across much of our trade territory

Ag
Pretax earnings of $56.9 million represent a $138.4 million increase versus the prior year period and reflect:
    Improved margins for our wholesale and retail agronomy products due to improved market conditions
    Increased margins for our grain and oilseed product category due to the timing impact of market adjustments
    Higher grain and oilseed volumes due to improved efficiencies and a more balanced global supply and demand environment

Nitrogen Production
Pretax earnings of $37.0 million represent a $44.7 million decrease versus the prior year period and reflect lower equity income from CF Nitrogen attributed to decreased market prices of urea and UAN.
Corporate and Other

Pretax earnings of $40.2 million represent a $7.8 million decrease versus the prior year period, primarily reflecting lower equity income from Ventura Foods, which experienced less favorable market conditions for edible oils.



All Eight Major Fertilizer Prices Higher

Retailers tracked by DTN for the fourth week of March 2024 show all eight major fertilizer prices are higher compared to last month. This marks the second time all fertilizers have been higher this winter/early spring.

Two fertilizers continue to be up a considerable amount. DTN designates a significant move as anything 5% or more. Urea was 8% more expensive compared to last month and had an average price of $576/ton. UAN28 was 5% higher in price looking back a month and had an average price of $360/ton.

The remaining six fertilizers were slightly more expensive compared to last month. DAP had an average price of $779/ton, MAP $827/ton, potash $513/ton, 10-34-0 $632/ton, anhydrous $794/ton and UAN32 $404/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.63/lb.N, anhydrous $0.48/lb.N, UAN28 $0.64/lb.N and UAN32 $0.63/lb.N.



Weekly Ethanol Production for 3/29/2024

According to EIA data analyzed by the Renewable Fuels Association for the week ending March 29, ethanol production stepped up 1.8% to 1.07 million b/d, equivalent to 45.07 million gallons daily. Output was 7.0% more than the same week last year and 15.3% above the five-year average for the week. The four-week average ethanol production rate rose 0.4% to 1.05 million b/d, which is equivalent to an annualized rate of 16.08 billion gallons (bg).

Ethanol stocks expanded 1.2% to a two-year high of 26.4 million barrels. Stocks were 5.1% more than the same week last year and 8.3% above the five-year average. Inventories thinned across the East (PADD 1) and West (PADD 5) Coasts but built across the other regions, including record-high weekly reserves in the Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, leapt 6.0% to a 21-week high of 9.24 million b/d (141.59 bg annualized). Demand was 0.6% less than a year ago but 11.3% above the five-year average.

Refiner/blender net inputs of ethanol followed, up 3.7% to 893,000 b/d, equivalent to 13.69 bg annualized and the largest weekly volume this year. Net inputs were 0.6% more than a year ago and 10.4% above the five-year average.

Ethanol exports were estimated at 71,000 b/d (3.0 million gallons/day), or 15.5% below the prior week. There were zero imports of ethanol recorded for the 28th consecutive week.



Farmers, Ethanol Industry Workers Call for Summertime E15 Waiver

Nearly 1,000 farmers, ethanol industry workers and other supporters from across the country sent a letter to President Biden today calling on his administration to take action to allow continued access to E15 throughout the upcoming summer driving season. E15 is a lower-cost, lower-carbon gasoline blend containing 15 percent ethanol.

“With the 2024 summer driving season just a few months away, we are urging your administration to take additional action that will ensure consumers across the nation have uninterrupted access to lower-cost, lower-carbon E15,” the letter states. “Allowing gasoline blenders and retailers to sell E15 this summer would help moderate prices at the pump, extend fuel supplies, and deliver relief to American families at a time of year when gasoline prices typically are at their highest. Today, E15 is selling for 10- 25 cents per gallon less than standard E10 gasoline, allowing the average American household to save $125-200 on its annual gasoline bill.”

The letter concludes, “As war in Ukraine and unrest in the Middle East continue to create turbulence in the global fuel market, we encourage you to continue embracing year-round E15—a domestic solution that enhances energy security, reduces emissions, and bolsters American agriculture.”

Earlier this week, in an RFA blog post, Chief Economist Scott Richman estimated that U.S. sales of the E15 fuel blend hit a record 1.11 billion gallons in 2023. Last week, RFA and allies sent a letter to the Environmental Protection Agency, calling on Administrator Michael Regan to act swiftly on an emergency waiver for E15 sales.

In February of this year, EPA granted a petition from eight Midwest governors to allow year-round sales of E15. However, the petition only applies to those eight states and does not go into effect until 2025, creating uncertainty about the status of E15 for the summer of 2024.



February DMC Margin Gains Nearly $1/cwt Over January
NMPF

The February margin under the Dairy Margin Coverage (DMC) program rose by $0.96/cwt from a month earlier to $9.44/cwt, triggering a payment of $0.06/cwt for coverage at the $9.50/cwt maximum Tier 1 level.

The rise was due to a $0.50/cwt increase in the February U.S. average all-milk price to $20.60/cwt, and a $0.46/cwt drop in the DMC feed cost formula, mostly as a result of lower corn prices.

Futures-based forecasts at the end of March indicated that DMC margins would remain mostly above the $9.50/cwt maximum Tier 1 coverage level during the remainder of the current calendar year, with possible brief dips below this level in late spring.



Highly Pathogenic Avian Influenza Detected in Ohio Dairy Herd

The Ohio Department of Agriculture (ODA) received confirmation from the United States Department of Agriculture’s (USDA) National Veterinary Services Laboratory (NVSL) of the detection of highly pathogenic avian influenza (HPAI) in a dairy cattle herd. This is the first case of HPAI in a livestock operation in Ohio.

The dairy operation in Wood County received cows on March 8, 2024, from a Texas dairy, which later reported a confirmed detection of HPAI. Ohio’s animal health officials were notified when the livestock began showing clinical signs compatible with sick, lactating dairy cows in other states.

The U.S. Department of Agriculture (USDA), Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC), as well as state veterinary and public health officials, continue to investigate the emerging illness among dairy cows that is causing decreased lactation, low appetite, and other symptoms.

On Monday, March 25, state animal health officials were notified when federal agencies confirmed the detection of HPAI in dairy herds in Texas and Kansas that had cattle exhibiting these symptoms. USDA’s NVSL has since confirmed the presence of HPAI in additional dairy cattle herds in Idaho, New Mexico, and Michigan.

Federal and state agencies continue to conduct additional testing from sick animals and in unpasteurized clinical milk samples from sick animals, as well as viral genome sequencing, to assess whether HPAI or another unrelated illness may be underlying any symptoms. Clinically sick dairy cattle from affected herds range from 1% - 20%, with an average of 10% of the milking herd affected. There are no confirmed reports of death loss in dairy cattle directly attributed to these detections. Most sick cows begin recovering within a few days.

According to the Food and Drug Administration and Centers for Disease and Prevention, there is no concern about the safety of commercially pasteurized dairy products due to both federal animal health requirements and pasteurization and the public health risk associated with HPAI remains low.



USDA to Host a Webinar for Livestock Producers, Poultry Growers, Regulated Entities on Inclusive Competition and Market Integrity under the Packers and Stockyards Act Final Rule

The U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) will host a webinar April 9, 2024, at noon ET, for livestock producers, poultry growers, and regulated entities to share information regarding the Inclusive Competition and Market Integrity under the Packers and Stockyards Act Final Rule.

Registration is required: https://www.zoomgov.com/webinar/register/WN_dMcIs6UzQTuUq9J6KFqdng

Attendees may submit questions in advance to AMS-AskPSD@usda.gov. Questions will also be accepted during the webinar.

USDA published the final rule in the Federal Register on March 6, 2024, and it will become effective May 6, 2024.

The rule:
-    Prohibits the adverse treatment of livestock producers and poultry growers based on race, color, religion, national origin, sex (including pregnancy, sexual orientation, and gender identity), disability, marital status, or age. It also prohibits discrimination against a livestock and poultry producer cooperative.
-    Prohibits retaliation against producers and growers for their engaging in certain protected activities: lawful communications or refusals to communicate, assertion of contractual and Packers & Stockyards Act rights, participation in associations and cooperatives, exploring or entering into a business relationship with a competing packer/swine contractor/live poultry dealer, and certain other protected activities.
-    Prohibits employing false or misleading statements or omissions of material information in contract formation, performance, and termination; and prohibits regulated entities from providing false or misleading representations regarding refusal to contract.
-    Supports USDA monitoring, evaluation, and enforcement of compliance with aspects of this rule through certain recordkeeping requirements.



Taranis and Steward Link Team to Deliver Conservation Opportunity to Farmers

Taranis and Mississippi-based Steward Link have teamed to provide farmers with simplified application and practice validation opportunities for USDA conservation funding programs.

Taranis, the global leader in AI-powered crop intelligence, is at the forefront of agricultural innovation, creating engagement and transparency within the agricultural production value chain. To better serve ag retailers and farmers, the Taranis-Steward Link partnership helps present a complete and comprehensive picture of what’s happening on a designated acreage, creating a higher quality and more complete program application.

Steward Link founder, Nick Thomas, shares his excitement for the partnership and notes the results the high-quality applications are yielding farmers.

“I couldn’t be happier with our relationship with Taranis,” Thomas says. “With 2024 being the first year, what we are seeing is a high-level of technology and practice adoption amongst Taranis customers. Technology and documentation position them well for many conservation opportunities. The technology has also helped us to open the door for new programs, and the applications we have been able to complete for Taranis customers have been extremely high-quality.”

Launched in 2015, Steward Link is a nationwide initiative founded by Nick Thomas, a former USDA Natural Resources Conservation Services employee who witnessed the opportunities farmers were missing to apply for private, federal, and state-level conservation funding because of timing and cumbersome paperwork processes. The company works to understand what a farmer is currently doing within their operation and then matches those practices to the federal, state, and private funding opportunities that exist.

“Farmers often don’t know about all of the programs available,” Thomas says. “We make it our job to know about every program and then to streamline the application process by taking on the practice alignment and paperwork burden. Steward Link’s mission is to find and secure the best opportunities available for farming, ranching, and forestry operations.”

Opher Flohr, Taranis CEO, explains that partnerships that advance the financial and stewardship positions of the farmer are a win for the entire value chain and an outcome Taranis, as a company, seeks to advance.

“Taranis is redefining how crop input and management decisions are made on the farm. Our service aligns perfectly with USDA’s mission to promote conservation, while maximizing profitability for growers, and therefore we have an edge on obtaining funding from USDA programs for our growers,” Flohr explains. “I believe this is just the start—as USDA continues to add funding for precise application practices that are unlocked by technologies like Taranis, we will be vigilant to make sure our growers are first in line to receive those funds.”

To learn more about Taranis and Steward Link and begin a conversation on how your farming operation may align with current opportunities, visit taranis.com/conservation.



USDA Makes $1.5 Billion Available to Help Farmers Advance Conservation and Climate-Smart Agriculture as Part of President Biden’s Investing in America Agenda

Agriculture Secretary Tom Vilsack today announced the availability of an historic $1.5 billion in fiscal year 2024 to invest in partner-driven conservation and climate solutions through the Regional Conservation Partnership Program (RCPP) as part of President Biden’s Investing in America agenda. The U.S. Department of Agriculture (USDA) is accepting project proposals now through July 2, 2024, that will help farmers, ranchers, and forest landowners adopt and expand conservation strategies to enhance natural resources while tackling the climate crisis. These projects in turn can save farmers money, create new revenue streams, and increase productivity.

The investments in climate-smart agriculture that USDA has made since the beginning of the Biden-Harris Administration, and will continue to make through the Inflation Reduction Act and Partnerships for Climate-Smart Commodities, are estimated to support over 180,000 farms and over 225 million acres in the next 5 years.

Today’s investment is made available through the Farm Bill and the Inflation Reduction Act, the largest climate investment in history, which has enabled USDA’s Natural Resources Conservation Service (NRCS) to boost funding for RCPP. Additionally, NRCS is announcing progress on its effort to streamline and simplify RCPP and improve processes and implementation.

“We had unprecedented demand for the Regional Conservation Partnership Program last year, showing the robust interest in conservation from farmers and ranchers,” Secretary Vilsack said. “Through the increase in funding from President Biden’s Inflation Reduction Act, we’re able to invest even more this year in this important program, increasing our impact across the landscape. We’re looking forward to seeing what the more streamlined and customer-oriented Regional Conservation Partnership Program can do to get more conservation on the ground in the coming months and years.”

There are two separate funding opportunities being announced today: RCPP Classic and RCPP Alternative Funding Arrangements (AFA). RCPP Classic projects are implemented using NRCS contracts and easements with producers, landowners and communities in collaboration with project partners. Through RCPP AFA, the lead partner works directly with agricultural producers to support the development of innovative conservation approaches that would not otherwise be available under RCPP Classic. NRCS will set aside $100 million for Tribal-led projects to be used between both funding opportunities.

The 2024 RCPP funding priorities are climate-smart agriculture, urban agriculture, conservation, and environmental justice. This funding advances President Biden’s Justice40 Initiative, which aims to ensure that 40 percent of the overall benefits of certain climate, clean energy, and other federal investments flow to disadvantaged communities marginalized by underinvestment and overburdened by pollution. Today’s action also advances President Biden’s America the Beautiful initiative, a 10-year, locally led and nationally scaled conservation initiative that includes the voluntary efforts of farmers, ranchers and private landowners.