Tuesday April 02 Ag News

NEBRASKA CROP PROGRESS AND CONDITION

For the week ending March 31, 2024, there were 3.9 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 10% very short, 27% short, 60% adequate, and 3% surplus. Subsoil moisture supplies rated 12% very short, 41% short, 44% adequate, and 3% surplus.

Field Crops Report:
Winter wheat condition rated 2% very poor, 3% poor, 30% fair, 50% good, and 15% excellent.

Oats planted was 12%, ahead of 6% last year and 5% for the five-year average. Emerged was 2%.



IOWA CROP PROGRESS & CONDITION REPORT

Much of the State experienced cooler than normal temperatures and much needed rain/snow showers which left Iowa farmers with 1.6 days suitable for fieldwork during the week ending March 31, 2024, according to the USDA, National Agricultural Statistics Service. Although minimal fieldwork occurred over the last week, some producers were able to apply anhydrous, manure, and dry fertilizer.

Topsoil moisture condition rated 22 percent very short, 37 percent short, 37 percent adequate and 4 percent surplus. Subsoil moisture condition rated 35 percent very short, 41 percent short, 22 percent adequate and 2 percent surplus.

Oats seeding has already reached 21 percent complete, 11 days ahead of both last year and the 5-year average. Much of the seeding took place prior to the week ending March 31. Some seeding took place several weeks ago and is starting to emerge.

No reports of cattle turned out onto pasture yet as many pastures are just beginning to green up with little new growth. Calving was in full swing.



USDA Issues First National USDA Crop Progress Report of Season

The nation's winter wheat crop is starting the growing season in significantly better shape than it was last year, according to USDA NASS.

In its first weekly national Crop Progress report of 2024 released on Monday, NASS estimated U.S. winter wheat condition at 56% good to excellent, up from a decade-plus low of 28% at the same time last year.

WINTER WHEAT
-- Crop condition: Just 11% of winter wheat was rated poor to very poor, down from 36% a year ago.
-- Crop development: 4% of winter wheat was headed nationwide as of Sunday. That's 1 percentage point behind last year's 5% and 2 percentage points ahead of the five-year average of 2%.

CORN
-- Planting progress: 2% nationwide as of Sunday, equal to last year and 1 point ahead of the five-year average of 1%. Most corn planting took place in Texas, which was 57% complete.



More than 7,000 Students to Gather in Lincoln for 96th Nebraska State FFA Convention

Lincoln will trade its usual red and become a “sea of blue” over the next week for the 96th Nebraska State FFA Convention, where this year’s theme is “Unwritten.” More than 7,000 students from across Nebraska will attend the convention, which runs from April 3-5. FFA members from across the state have spent the last year preparing for competitions and qualifying for the state convention at district contests.

Thomas Perrin of Ogallala has served as the 2023-2024 State FFA President and is a freshman at the University of Nebraska-Lincoln. He has spent the year representing the state and promoting agriculture around the world, including a trip to Australia for agricultural focused leadership training. Perrin says that the state convention is about more than competing for students.

“A big part of FFA is also about the relationships and connections students, advisors, community members, and business leaders make with each other,” said Perrin. “This past year has shown me the true possibilities for students to meet future employers and for community and business leaders to be involved in teaching and shaping these young students into high-quality individuals.”

The state convention includes Career Development Events like Livestock Judging and Floriculture held at UNL’s East Campus, and Leadership Development Events such as Parliamentary Procedure and Creed Speaking that are held in Downtown Lincoln. Top-placing individuals and teams will get the chance to compete at the National FFA Convention held in Indianapolis in October.

A large part of the convention are the seven general sessions held at Pinnacle Bank Arena, kicking off on Wednesday night with keynote speaker Rob Jones, a retired Marine and paralympic medalist. New this year is a question and answer session with Nebraska Volleyball Head Coach John Cook to be held on Friday morning. The State FFA Officer Team chairs the sessions and will give their retiring addresses, something Perrin is looking forward to.

“I am most looking forward to seeing students for the final time and getting to share not only my final message with them but to also cheer them on as they compete in their respective competitions,” said Perrin. “The students are a big reason why I have loved this position so much.”

The Nebraska FFA Foundation hosts a Career and Business Expo also at PBA for students to explore during the convention, as well as various leadership and agriculture education workshops. A comprehensive schedule of the State FFA Convention can be found at nebraskaffastate2024.sched.com.



FFA Members Practice “Living to Serve” During State Convention

As part of the 96th Nebraska FFA State Convention, over 800 FFA members will make a positive impact on the Lincoln community and beyond while putting their leadership into action.

In partnership with Farm Credit Services of America and Mercy Meals, FFA members will provide indirect service engagement by packaging thousands of meals that will be delivered to children in need throughout the world. During last year’s Living to Serve portion of the convention, over 110,000 meals were packaged, and plans are in the works to exceed that number this year.

The last line of the FFA motto is “Living to Serve” which signifies the vital role service plays in our organization. Members impact their local communities across Nebraska through service engagement, community service, and service learning. Students leverage their creative thinking and problem-solving skills to create local solutions to meet the community needs.

More than 7,000 FFA members, advisors, and guests come to Lincoln to celebrate the Nebraska State FFA Convention. Members participate in general sessions, competitions, educational tours, leadership workshops, and a Career Fair and Expo. Events are hosted at Pinnacle Bank Arena, Haymarket-area hotels, and the University of Nebraska – Lincoln East Campus.



NCW – Consumer Education and Promotion Committee Announces 2024 Beef Ambassador Competition and Advocacy Training

Monday, Nebraska Cattlemen’s NCW – Consumer Education and Promotion Committee announced that the 2024 Beef Ambassador Competition and Advocacy Training will take place on Wednesday, June 12 at 1:00 p.m. MT at the Lake McConaughy Visitors Center and Water Interpretive Center in Ogallala, Nebraska.

The Nebraska Beef Ambassador Contest and Beef Advocacy Training provides an opportunity for future beef industry leaders, ages fourteen to twenty-four years old, to sharpen their advocacy skills and strengthen their knowledge of the key issues facing the number one industry in Nebraska.

The Beef Ambassador Competition requires participants to address current issues facing the beef industry with both a written response and a mock media interview. The competition is separated into two divisions, senior and collegiate. Cash prizes will be awarded, and the two first-place division winners will receive a belt buckle. The first-place junior and collegiate winners will become official Nebraska Beef Ambassadors for a full year. They will work to educate consumers and students on the importance of beef. At the end of their one-year term, the collegiate Nebraska Beef Ambassador will be awarded a scholarship on behalf of the Nebraska Cattlemen Research and Education Foundation.

Registration and additional details can be found on the Nebraska Cattlemen website at www.nebraskacattlemen.org. For more information, please contact Gina Hudson at ncw@necattlemen.org or at (402) 469-3157.

The 2024 Beef Ambassador Competition and Advocacy Training is sponsored by Farm Credit Services of America and Purina Animal Nutrition.



Green Plains Begins Commissioning of the Demonstration Facility Combining Fluid Quip Technologies’ MSC ™ with Shell Fiber Conversion Technology

Green Plains Inc. (NASDAQ:GPRE) today announced that it has begun commissioning of the York, Nebraska, demonstration facility combining Fluid Quip Technologies’ precision separation and processing technology (MSC™) with Shell Fiber Conversion Technology (SFCT). The new facility combines fermentation, mechanical separation and fiber conversion technology into one platform. This facility will demonstrate the potential to liberate all available renewable corn oil currently bound in the fiber fraction of the corn kernel, generate cellulosic sugars for production of low-carbon fuels, and further enhance and expand production of Ultra-High Protein feed ingredients for global animal feed diets.

“We believe that pairing together FQT’s best-in-class mechanical separation technology with Shell’s cutting-edge chemical process solidifies our path to revolutionizing the grain processing and biofuels landscape as we’ve known it,” said Todd Becker, President and Chief Executive Officer of Green Plains. “This collaboration has the potential to transform how we process agricultural products – maximizing the availability of low-carbon feedstocks for fuels and high-value animal nutrition markets.”

“I am delighted to see this innovative partnership of sustainable technologies achieve this important milestone,” said Sinead Lynch, Senior Vice President Low Carbon Fuels, Shell. “This was accomplished through close collaboration with our partners at Green Plains, and as a result of the dedication and hard work of the joint project team. The SFCT + MSC process is an exciting development for our Low Carbon Fuels business and brings us one step closer to delivering additional sustainable products for our customers.”

Product and market development for the Ultra-High Protein feed ingredients is already underway, with active involvement from potential customers. Following successful demonstration of the combined technology, and subject to positive final investment decisions, Green Plains and Shell will look for potential opportunity to take this technology platform forward through full commercial deployment, beginning with one of Green Plains’ existing MSC™ facilities. Green Plains will market and distribute protein products through the company’s animal nutrition platform, and Shell will manage the energy-based low-carbon feedstocks and products for various uses within its global platform.



AGCO and Trimble Close Joint Venture, Form PTx Trimble

AGCO Corporation (NYSE: AGCO) and Trimble (Nasdaq: TRMB) today announced the closing of their joint venture (JV) transaction. The JV, known as PTx Trimble, combines Trimble's precision agriculture business and AGCO's JCA Technologies to form a new company that will better serve farmers with factory fit and retrofit applications in the mixed-fleet precision agriculture market.

AGCO has acquired an 85% stake in PTx Trimble, and Trimble will hold a 15% stake. Going forward, the PTx Trimble JV will be consolidated into AGCO's financial statements.

"Farmers worldwide need technologies that support them to be more productive and profitable while minimizing the environmental impact of their operations," said Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer. "PTx Trimble will provide farmers greater access to next-generation precision ag tools, no matter what brands of tractors and implements they operate."

The formation of PTx Trimble enhances AGCO's comprehensive technology offering around guidance, autonomy, precision spraying, connected farming, data management and sustainability.

"Farmers are the real winners here," said Rob Painter, Trimble's President and Chief Executive Officer. "By combining our expertise and resources through this JV, we aim to accelerate the pace of innovation. With a focus on open technologies, customers will benefit from tech solutions available to farmers across a broad range of tractor and implement brands."

AGCO's consolidated precision ag revenue is now expected to exceed $2.0 billion by 2028, and the transaction is expected to be accretive to AGCO's revenue growth, adjusted operating margin profile and adjusted earnings per share in the first full year post-close.

AGCO financed the transaction through a combination of $1.1 billion in recently issued senior unsecured notes, a $500 million term loan facility, other borrowings and cash on hand.



Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.82 million tons (194 million bushels) in February 2024, compared with 5.84 million tons (195 million bushels) in January 2024 and 5.31 million tons (177 million bushels) in February 2023. Crude oil produced was 2.29 billion pounds, up slightly from January 2024 and up 10 percent from February 2023. Soybean once refined oil production at 1.63 billion pounds during February 2024 increased 2 percent from January 2024 but decreased 2 percent from February 2023.

Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 492 million bushels in February 2024. Total corn consumption was up 2 percent from January 2024 and up 11 percent from February 2023. February 2024 usage included 92.1 percent for alcohol and 7.9 percent for other purposes. Corn consumed for beverage alcohol totaled 4.54 million bushels, up 13 percent from January 2024 and up 35 percent from February 2023. Corn for fuel alcohol, at 442 million bushels, was up less than 1 percent from January 2024 and up 11 percent from February 2023. Corn consumed in February 2024 for dry milling fuel production and wet milling fuel production was 92.4 percent and 7.6 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.81 million tons during February 2024, up 3 percent from January 2024 and up 16 percent from February 2023. Distillers wet grains (DWG) 65 percent or more moisture was 1.17 million tons in February 2024, down 10 percent from January 2024 but up 1 percent from February 2023.

Wet mill corn gluten feed production was 254,386 tons during February 2024, up 13 percent from January 2024 and up 3 percent from February 2023. Wet corn gluten feed 40 to 60 percent moisture was 207,421 tons in February 2024, up 4 percent from January 2024 and up 12 percent from February 2023.



Beef and Pork Exports Brought Significant Returns to Corn and Soybean Producers in 2023

Beef and pork exports of $18.1 billion in 2023 had a significant impact on the corn and soybean industries, according to an independent study conducted by The Juday Group and released by the U.S. Meat Export Federation (USMEF). The study quantified the returns that beef and pork exports brought to corn and soybean producers nationally and on a state-by-state level for leading corn and soybean-producing states.

Nationally, U.S. pork and beef exports contributed an estimated total economic impact of 14.6% per bushel to the value of corn and 13.9% per bushel to soybeans in 2023, according to the study.

“We’ve been charting the impact of red meat exports on corn and soybean value since 2016. Despite the international headwinds the red meat industry faced in 2023, red meat exports contributed substantially to the bushel values of U.S. corn and soybeans,” says Dave Juday of The Juday Group.

The quality of U.S. corn and soybeans as feed inputs is a key differentiator for U.S. red meat in international markets, says USMEF Chair Randy Spronk, a pork and grain producer from Edgerton, Minn.

“Our production practices and the quality of our feed inputs is an important part of the story that USMEF promotes to international customers,” says Spronk. “How we raise our soybeans, how we raise our corn, how we process our feed and the efficiencies we strive for ‒ those are sustainable practices that help differentiate us from other beef and pork exporters.”

Key findings from the study, which utilized 2023 statistics provided by USDA’s National Agricultural Statistics Service and data compiled by The Juday Group, include:

Exporting corn through U.S. beef and pork
    Beef and pork exports accounted for 512.7 million bushels of U.S. corn usage, which equated to a market value of $3.05 billion (at an average 2023 corn price of $5.95 per bushel).
    Beef and pork exports accounted for 3.07 million tons of DDGS usage, equating to $671.62 million (at an average price of $219 per ton).
    Beef and pork exports contributed an estimated total economic impact of 14.6%, or $0.87, of bushel value at an average price of $5.95 per bushel.

Exporting soybeans through U.S. pork
    Pork exports accounted for 96.8 million bushels of U.S. soybean usage, which equated to a market value of $1.36 billion (at an average price of $14.07 per bushel).
    Pork exports contributed an estimated total economic impact of 13.9% of bushel value, or $1.95, at an average price of $14.07 per bushel.

Handouts detailing the impact of red meat exports at the national level and on the leading corn-producing and soybean-producing states are available from the USMEF website https://www.usmef.org/export-data/exports-of-u-s-feedgrains-and-oilseeds-through-red-meat.



EPA warns farmworkers about risks of Dacthal

Today, the U.S. Environmental Protection Agency is announcing its next steps to protect people from the herbicide dimethyl tetrachloroterephthalate (DCPA, or Dacthal). EPA is warning people of the significant health risks to pregnant individuals and their developing babies exposed to DCPA and will be pursuing action to address the serious, permanent, and irreversible health risks associated with the pesticide as quickly as possible. EPA has also issued a letter to AMVAC, the sole manufacturer of DCPA, restating the risks the agency found and stating that due to the serious risks posed by DCPA, the agency is pursuing further action to protect workers and others who could be exposed. EPA is taking this rare step of warning farmworkers about these concerns while it works on action to protect workers because of the significant risks the agency has identified.

“DCPA exposure represents a serious risk to pregnant workers and their children, so it’s imperative that we warn people about those risks now,” said Assistant Administrator for the Office of Chemical Safety and Pollution Prevention Michal Freedhoff. “We’re committed to taking action to protect the health of children, workers, and others who are exposed to DCPA.”

DCPA is an herbicide registered to control weeds in both agricultural and non-agricultural settings, but is primarily used on crops such as broccoli, Brussels sprouts, cabbage and onions.

DCPA is currently undergoing registration review, a process that requires reevaluating registered pesticides every 15 years to ensure they cause no unreasonable adverse effects on human health or the environment. In May 2023, EPA released its assessment on the risks of occupational and residential exposure to products containing DCPA, after the agency reviewed data that it compelled AMVAC to submit, which had been overdue for almost 10 years. The assessment found concerning evidence of health risks associated with DCPA use and application, even when personal protective equipment and engineering controls are used. The most serious risks extend to the developing babies of pregnant individuals. EPA estimates that some pregnant individuals handling DCPA products could be subjected to exposures from four to 20 times greater than what current DCPA product label use instructions indicate is considered safe. EPA is concerned that pregnant women exposed to DCPA could experience changes to fetal thyroid hormone levels, and these changes are generally linked to low birth weight, impaired brain development, decreased IQ, and impaired motor skills later in life.

Also of concern are risks to developing babies of pregnant individuals entering or working in areas where DCPA has already been applied (especially post-application workers involved in tasks such as transplanting, weeding and harvesting). Current product labels specify that entry into treated fields must be restricted for 12 hours after application. However, the evidence indicates that for many crops and tasks, levels of DCPA in the previously treated fields remained at unsafe levels for 25 days or more. EPA also identified potential risks for individuals using golf courses and athletic fields after DCPA was applied. Spray drift from pesticide application could also put developing babies at risk for pregnant individuals living near areas where DCPA is used.

Since the release of EPA’s 2023 assessment, AMVAC has proposed several changes to the DCPA registrations, including the recent cancelation of all DCPA products registered for use on turf. Those cancelations eliminate exposures to DCPA from recreational activities on and around turf. However, according to EPA’s analysis, other proposals submitted by AMVAC do not adequately address the serious health risks for people who work with and around DCPA. EPA is therefore preparing to take further action under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) as quickly as possible to protect people from the risks of DCPA.

When serious risks are identified, EPA can take action under FIFRA to suspend or cancel a pesticide. These actions are resource-intensive and take time to implement, partly due to the procedural requirements of FIFRA. A cancelation proceeding would take at least several months (if uncontested by the registrant), and potentially several years to accommodate a potential administrative hearing and any subsequent appeal of an order of cancelation (if the registrant contests the action). FIFRA also allows EPA to seek a suspension of a pesticide product while cancelation proceedings are ongoing if the Administrator determines it is necessary to prevent an imminent hazard. An administrative hearing and final order on a suspension proceeding (if the action is contested) would likely take several months to conclude. However, the Administrator may also issue an order of suspension—effective immediately on issuance—if he determines that an emergency exists such that an administrative hearing cannot be held before suspending. Any final order of suspension would remain in effect until cancelation proceedings end.  EPA is considering these tools as it moves forward with the DCPA registration review, but in light of the serious risks posed by DCPA, chose to warn the public of them at this time as it continues its work.

Background on EPA’s Review of DCPA
In 2013, the agency issued a Data Call-In (DCI) to AMVAC, requiring it to submit more than 20 studies to support the existing registrations of DCPA. The data required by EPA included a comprehensive study of the effects of DCPA on thyroid development and function in adults and in developing babies before birth. Several of the studies submitted by AMVAC from 2013-2021 were considered insufficient to address the DCI, while the thyroid study and other studies were not submitted at all. In April 2022, EPA issued a Notice of Intent to Suspend the DCPA technical-grade product (used to manufacture end-use products) based on AMVAC’s failure to submit the complete set of required data for almost 10 years, including data on DCPA’s thyroid toxicity. On Aug. 22, 2023, the agency suspended the registration for the DCPA technical-grade product, a rare but necessary step given AMVAC’s delay in providing the data EPA requested nearly a decade before. In November 2023 the suspension was lifted after AMVAC submitted sufficient data. DCPA use on turf was voluntarily canceled by AMVAC in December 2023, but unacceptable risks from agricultural use remained.  



USDA Announces April 2024 Lending Rates for Agricultural Producers 

The U.S. Department of Agriculture (USDA) announced loan interest rates for April 2024, which are effective April 1, 2024. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.   

“I encourage our lenders and borrowers alike to work with our local offices and our cooperators to capitalize fully on the existing flexibilities in these important programs,” said FSA Administrator Zach Ducheneaux.     

Operating, Ownership and Emergency Loans       FSA offers farm ownership, operating and emergency loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation. For many loan options, FSA sets aside funding for underserved producers, including, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers.     

Interest rates for Operating and Ownership loans for April 2024 are as follows:         
    Farm Operating Loans (Direct): 5.125%   
    Farm Ownership Loans (Direct): 5.375%    
    Farm Ownership Loans (Direct, Joint Financing): 3.375%   
    Farm Ownership Loans (Down Payment): 1.500%   
    Emergency Loan (Amount of Actual Loss): 3.750%     

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.      

To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.      

Commodity and Storage Facility Loans      Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.        

Commodity Loans (less than one year disbursed): 6.000%   
    Farm Storage Facility Loans:     
        Three-year loan terms: 4.375%   
        Five-year loan terms: 4.250%    
        Seven-year loan terms: 4.250%
        Ten-year loan terms: 4.250%
        Twelve-year loan terms: 4.250%   
    Sugar Storage Facility Loans (15 years): 4.375%     



Reports Recap
Matthew Diersen, Risk & Business Management Specialist, South Dakota State University

Late March brought a flurry of reports and some clarity of fundamentals for inputs and competing meats. While the overall level of cattle inventory is lower for the year, the short run situation continues to be dominated by feedlot behavior. The higher level of cattle on feed compared to a year ago keeps the emphasis on feed prices. The tight supply of replacement feeder cattle will continue to be a challenge.

The recent Quarterly Hogs and Pigs report showed the March 1 inventory up slightly from a year ago. While the breeding herd is lower, the inventory of market hogs is higher. Thus, there will be more pork competing with beef in the short run. The productivity indicators of pigs per litter and pig crop were both above expectations, which will combine to offset lower sow inventory levels. The farrowing intentions for the upcoming two quarters were both down from a year ago, but slightly above trade expectations. Overall, the inventory levels suggest some stabilization of supply going forward.

Despite both cattle and hog inventories on the feed side being larger, the changes have not resulted in the corn feed and residual use level reacting in a large way. The projected use for the current 2023-2024 corn marketing year is up slightly from 2022-2023 but almost unchanged from 2021-2022. The recent Grain Stocks report showed a large increase in corn stocks as of March 1. The stocks at 8.4 billion bushels are up almost 1.0 billion bushels from a year ago. The actual level was just below the average trade estimate, giving a slight boost to nearby futures prices. The change in positions is mainly at the on-farm level. Some of this may be from feeders replenishing their feed needs. However, the changes at the state level suggest higher on-farm storage is matching the higher production levels across the western corn belt in 2023. Thus, in that region corn basis is wider and prices would be favorable for northern feedlot states.

Shifting to the new-crop situation, the Prospective Plantings report showed expected corn acres for 2024 at 90.0 million acres, which was at the low end of trade expectations. The slight surprise was supportive of December corn futures prices after the release. Less corn acres would result in more soybean acres and lower soybean meal prices. Even with lower expected acres, there is still an expectation of higher ending corn stocks keeping corn prices lower than in recent marketing years. While less-discussed and less-anticipated by industry analysts, the Prospective Plantings report gives harvested acres for all hay. Producers expect to harvest 51.6 million acres across the U.S. in 2024. A year ago, producers expected to only harvest 50.6 million acres, which would have continued to greatly stress supplies. However, producers ended 2023 by harvesting 52.8 million acres. Hay prices, especially for alfalfa and alfalfa-mix hay, are lower than a year ago. Stocks have improved for hay but remain tight.