Rural Mainstreet Economy in Negative Territory Again - Farmland Prices Fall for First Time in Almost Five Years
For a ninth straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the May 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 May fell to 44.2 from 45.8 in April. 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 ninth 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: After rising above the growth neutral threshold for 53 straight months, the region’s farmland prices slumped to 47.9 from April’s 56.5. “For the first time in more than four years, Creighton’s survey is detecting weakening farmland price growth. Only 4.2% of bankers reported that farmland prices expanded from previous levels,” said Goss.
Bankers registered average yearly cash rents for non-irrigated crop land in the region of $245 per acre.
According to trade data from the International Trade Association, regional exports of agriculture goods and livestock for 2024 year-to-date were down 9.5% from the same period in 2023.
Farm equipment sales: The farm equipment sales index for May dropped to 34.0 from 47.7 in April. “This is the 11th time in the past 12 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.
This month bankers were asked about their banks’ average interest rates on farm operating loans and farmland loans. On average, bankers reported an average interest rate of 8.6% on farm operating loans and 7.4% on farmland loans.
Below are the state reports:
Nebraska: The Nebraska RMI for May sank to 41.8 from 42.7 in April. The state’s farmland price index for May dropped to 46.7 from 54.5 in April. Nebraska’s May new-hiring index sank to 48.2. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up 19.4% from the same period in 2023.
Iowa: May’s RMI for the state increased to 40.6 from April’s 36.7. Iowa’s farmland price index for May improved to 52.2 from 52.1 in April. Iowa’s new hiring index for May declined to 47.7 from 52.1 in April. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up 6.4% 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.
Ricketts Leads Resolution Announcing Renewable Fuels Month
Thursday, U.S. Senator Pete Ricketts (R-NE), member of the Senate Committee on Environment and Public Works, led a bipartisan resolution to designate May 2024 as Renewable Fuels Month in America.
“Biofuels like ethanol and biodiesel are a win for Nebraska and a win for America,” said Senator Ricketts. “This resolution recognizes the essential role renewable fuels play in lowering prices for consumers, reducing our impact on the environment, supporting rural communities, and lessening our reliance on foreign adversaries. I want to thank this bipartisan group of colleagues for their support and call on all Americans to continue choosing renewable fuels.”
Additional co-sponsors of the bill include U.S. Senators Sherrod Brown (D-OH) Tammy Duckworth (D-IL), Roger Marshall (R-KS), John Thune (R-SD), Joni Ernst (R-IA), Amy Klobuchar (D-MN), Tina Smith (D-MN), Jerry Moran (R-KS), Chuck Grassley (R-IA), and Deb Fischer (R-NE). The resolution also has the support of Growth Energy, Renewable Fuels Nebraska, and Clean Fuels Alliance America.
SUPPORT FROM STAKEHOLDERS:
Clean Fuels Alliance America’s Kurt Kovarik: “Clean Fuels thanks Senator Ricketts for highlighting the importance and supporting continued growth of the biodiesel, renewable diesel, and sustainable aviation fuel industry. We also applaud his leadership in working to open new fuel markets for Nebraska soybean farmers like marine, by introducing the Renewable Fuels for Ocean-Going Vessels Act.”
Growth Energy’s Emily Skor: “Sen. Ricketts has long been an advocate for America's renewable fuels industry, and we commend him for introducing this resolution. Today, American-made bioethanol is lowering carbon emissions while saving consumers money, and with the right policies, it could be doing even more. We hope Renewable Fuels Month becomes an annual event that calls attention to the many benefits our industry delivers for the rural economy, the environment, and the nation's energy security.”
Renewable Fuels Nebraska’s Dawn Caldwell: “Renewable fuels like ethanol are the clearest sign of America’s continued energy leadership. They lower costs for our families at the gas pump, they minimize our impact on the environment, and they strengthen our national security by reducing our dependence on foreign energy — all while providing economic opportunities for our farmers, ranchers, and producers. We’re grateful to Senator Ricketts, Senator Fischer, and their colleagues for shining a light on renewable fuels this month, as well as for finding ways to encourage even greater growth in our industry.”
TWO PRIORITIES SERVING IOWA BEEF CATTLE PRODUCERS SIGNED INTO LAW BY GOVERNOR REYNOLDS
On Thursday, Gov. Kim Reynolds signed two bills into law that were high priorities for the Iowa Cattlemen’s Association (ICA). Showcasing the importance, a large crowd gathered at Pat and Laura Blomme’s farm to witness this notable event.
The Meat Integrity Bill (S.F. 2391), led by Sen. Dawn Driscoll (SD-46) and Rep. Heather Hora (HD-92), protects against the misbranding of fake meat products and keeps experimental, lab-grown protein out of supplemental nutrition programs and schools.
During the signing, Gov. Reynolds referenced that this bill is about transparency, ensuring consumers are told exactly what they are getting. She went on to say that it is just common sense that when a product is labeled as beef, pork, or chicken, it should come from an animal.
“The Meat Integrity Bill means that Iowa cattle producers are going to be relevant in the future,” said Dan Delaney, an ICA member from Jefferson County. “It means we won’t have others trying to sell a product in the state labeled as beef, pork, or chicken if it doesn’t come from that animal. This means a lot to the entire livestock industry.”
Steve Swenka, an ICA member from Johnson County added, “This bill ensures the integrity and wholesomeness of our product. It makes sure that imposters and wannabes aren’t thrown into the mix. And that the purity and quality of our product is represented the way it was meant to be.”
The second bill, H.F. 2649, was managed by Sen. Driscoll and Rep. Derek Wulf (HD-76) and prevented a new tax on producers by reinstating the livestock capital gains deduction.
Gov. Reynolds shared that this bill will save producers collectively more than $18 million by 2030. She said that this bill prevents the net capital gain on the sale of livestock from being considered individual income for tax purposes.
Delaney and Swenka echoed the positive financial impacts for producers referenced by the governor. They said that the signing of this bill was a great victory for today’s producers and future generations of livestock producers.
To see these two bills come to fruition validates the continued commitment by the governor and state legislators to the Iowa beef cattle industry and agriculture as a whole. ICA’s work in the Iowa Statehouse provided meaningful advocacy that increased profitability for producer members and protected their livelihood for generations to come.
“It was a beautiful day, and while I wish I could have been in the field, it was nice to be here to see the support for all agriculture,” said Delaney. “I also enjoyed having the signing on an operation with the family atmosphere, the kids here, and the beautiful location. This is what Iowa is all about.”
“It's a great day,” said Swenka. “It's not every day that you get to see a bill signed into law in person. To actually see it happen after following it so closely for two years is very gratifying and rewarding.”
IFBF and Fareway launch “Sizzlin’ Summer Giveaway” to highlight value of animal protein
Iowans can now enter for a chance to win a $200 meat gift card through Iowa Farm Bureau’s Sizzlin’ Summer Giveaway in partnership with Fareway Meat and Grocery.
One winner will be announced from each of Fareway’s 114 locations in Iowa. Additionally, one grand prize winner will receive a Traeger Pro 22 Smoker Grill, a $500 meat bundle, a Grizzly soft-sided cooler and other backyard barbeque gear.
To enter, visit www.iowafarmbureau.com/SizzlinSummer and answer five multiple choice questions about how farmers provide nutrient-dense meat, dairy and eggs, while also caring for animals and the environment. One entry per email address is allowed; the contest ends June 23.
“This contest is part of our Real Farmers. Real Food. Real Meat. initiative to highlight the efforts of Iowa farmers raising healthy animals while prioritizing sustainability,” says IFBF President Brent Johnson. “We know consumers want to know more about how their food is grown and raised and this contest is a fun way to engage them. Farmers are incredibly proud to provide Iowans with high-quality meats that bring families together.”
“Fareway has long recognized nutritious meat comes from dedicated, responsible farmers,” says Fareway CEO Reynolds Cramer. “This contest celebrates the hard-working men and women in our state who bring food from gate to plate and celebrates food as an experience. Good memories are made around the grill, and Fareway is humbled to be a part of that.”
Animal-based proteins are natural sources of Vitamin B12, responsible for healthy brain development in children and proper nervous system function. Red meat and poultry also provide the most zinc in American diets to support immune health. Farmers also continue to harness technology and innovation to raise animals with fewer natural resources. Between 1990 and 2022, U.S. farmers cut greenhouse gas emissions per meal by 25%. For more information, visit www.realfarmersrealfoodrealmeat.com.
Rep. Randy Feenstra and Kevin Virgil Confirm Attendance for Rural and Renewable Fuels Issue Forum on May 30
On the afternoon of May 30 at the Western Iowa Tech Community College in Cherokee, candidates for the Republican nomination for the Fourth Congressional District, U.S. Representative Randy Feenstra and Kevin Virgil, will address key issues impacting Iowans at the Rural and Renewable Fuels Issue Forum. The Agribusiness Association of Iowa, Iowa Biodiesel Board and Iowa Renewable Fuels Association are sponsoring the event.
In their invitation letter to candidates, the sponsors noted: “During the forum each candidate will be given the opportunity to address a series of questions impacting rural Iowa, including topics on farming, livestock production, renewable fuels, and rural life.”
Rep. Randy Feenstra hails from Hull, Iowa where he has served in several different capacities in Hull, Sioux Center and as a Senator at the statehouse before winning the Republican nomination for the 4th congressional district in 2020. Leading up to his role of U.S. Representative, Feenstra held a career in sales and as a professor at Dordt University. He was reelected in 2022 and now seeks a third term.
Kevin Virgil is an O’Brien County native. Virgil served in the Army and later joined the Center Intelligence Agency (CIA). He has also led a career on Wall Street and as an entrepreneur when he co-founded a data analytics company called Polysentry. He now seeks the nomination for Iowa’s 4th district.
Hard Winter Wheat Tour Final Results
The Wheat Quality Council's Hard Winter Wheat Tour concluded Thursday, May 16, in Manhattan, Kansas. After three days, scouting 449 fields across the state and some into neighboring Nebraska and Oklahoma, the total weighted average yield for hard winter wheat was estimated at 46.5 bushels per acre (bpa), a 55% increase from 2023.
Last year, the average yield estimate for the 2023 winter wheat tour was 30.0 bpa.
Based on May 1 conditions, Kansas's 2024 winter wheat crop is forecast at 268 million bushels, up 33% from last year's crop, according to USDA National Agricultural Statistics Service. Average yield is forecast at 38.0 bpa, up 3 bushels from last year.
NMPF Awarded USDA Grants to Advance Dairy Industry Disease Preparedness
The National Milk Producers Federation (NMPF) today was awarded funding from the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service National Animal Disease Preparedness and Response Program (NADPRP) supporting two projects advancing dairy cattle disease preparedness.
The first award will expand on USDA funding NMPF received in 2021 to build the National Dairy Farmers Assuring Responsible Management (FARM) Biosecurity Program. FARM Biosecurity provides dairy farmers with the tools to protect the health of their herds and employees from everyday and foreign animal diseases. Biosecurity resources developed from the initial 2021 USDA funding are currently being used to respond to the H5N1 animal health issue. This new funding will expand educational resources and training opportunities for producers, cooperatives, state animal health officials and FARM Program evaluators; update the Secure Milk Supply Plan guidance and further develop the capabilities of the FARM Biosecurity database.
The second award will bring together stakeholders including dairy cooperatives, milk haulers, milk testing labs, state and federal animal health officials and National Animal Health Laboratory Network (NAHLN) lab directors to conduct a gap analysis and create a report outlining current capabilities and guidance for industry and policymakers to implement a foot-and-mouth disease diagnostic assay using bulk tank milk samples to provide herd-level disease surveillance in the event of an outbreak.
“USDA funding for continued enhancement of biosecurity on dairy farms for emerging and foreign animal diseases arrives at a time when the dairy industry is already using USDA-funded resources to address the challenges of H5N1,” Gregg Doud, president and CEO of NMPF, said. “This ongoing collaboration between USDA and NMPF is building resiliency for the U.S. dairy industry now and for the future.”
The grants are funded by the 2018 Farm Bill as part of an overall strategy to help prevent animal pests and diseases from entering the United States and reduce the spread and impact of potential disease incursions through advance planning and preparedness. USDA has funded the NADPRP projects with the goal of individually and collectively addressing critical livestock biosecurity, large-scale depopulation and carcass disposal concerns in all major livestock industries across all U.S. regions. NMPF will apply the grant funding to advance biosecurity and diagnostic testing capabilities to support animal health on dairy farms by partnering with stakeholders and experts, including dairy farmers, veterinarians, dairy cooperatives and processors, NAHLN laboratories, Preventalytics LLC, and state and federal animal health officials.
Soy Innovation Challenge Winner Offers Most Sustainable Ingredient Allowing Cattle to Digest 30% More Soy Protein
The United Soybean Board, in partnership with The Yield Lab Institute and Amazon Web Services (AWS) Startups, is pleased to announce Clean Label Solution as this year’s Soy Innovation Challenge grand prize winner. Through a proprietary fermentation process, Clean Label Solution delivers high-value beef and dairy cattle feed from soybeans and soybean meal. U.S. soybean farmers produce a high-quality and eco-friendly feed ingredient for the livestock supply chain, making soybeans a preferred choice for animal agriculture.
The protein component of the soybean provides a valuable source of nutrients for cattle, however cattle are unable to consume the soy oil component. In trials of the Clean Label Solution's Bi-Pass Pro+ feed product, cattle could digest the 30% of soy protein that otherwise passes through the animal without use. This boosts milk and meat production while curbing methane emissions. It also offers a more sustainable ingredient that replaces the need for palm oil in cow feed.
"Securing victory in the Soy Innovation Challenge unlocks the immense potential of the soybean market, not only in terms of methane reduction but also economically. Our breakthrough soy-based feed addresses environmental concerns by reducing methane emissions and also presents lucrative opportunities for sustainable agriculture and economic growth. This win marks a pivotal moment in harnessing the full potential of soybeans for a greener, more prosperous future,” says Dr. Mohammad Arshadi, Founder and CEO of Clean Label Solution.
This year’s Soy Innovation Challenge encouraged new and novel uses for soybean meal. As soybean oil demand continues to expand in the biofuels space to help U.S. states decarbonize, this presents an opportunity to find new uses for increased soybean meal supply. Nearly 70 candidates from around the globe submitted innovative ideas for soy-based solutions for a wide range of applications, including food, cosmetics, petrochemicals, and biofuels. A panel of nine experts vetted applications and selected four finalists to participate in a venture accelerator program while also competing for a U.S. Soy investment. This furthers the economic viability of their businesses and grows a customer base that will consume U.S.-grown soybeans through these products.
“Reviewing all of the applicants’ submissions and hearing from them firsthand showcased the power and the possibility of the soybean,” shared USB farmer-leader from Virginia and Soy Innovation Challenge judge Shannon Tignor Ellis. “Each of the four finalists brought something different to the table, opening doors for innovation that elevates the value of our soybeans and presents a unique opportunity for checkoff investment. While the push for sustainability continues, our soybeans keep finding new ways to be part of the solution.”
In addition to Clean Label Solution being awarded $75,000, the other 2023 Soy Innovation Challenge winners include:
EDEN Concept Fill developed Cellyfill cushion products as a fully sustainable alternative to polyurethane foam, the petroleum-based industry standard. Cellyfill is a cellulose-based material from soy hulls that gives manufacturers and consumers a lower-cost, high-quality, sustainable option for soft fill in furniture, mattresses, and other products. – First runner-up awarded $50,000.
NeuEsse developed a human skin substitute, OmegaSkin™, made from soy protein. OmegaSkin™ becomes a scaffold for the body to regrow its skin over serious wounds or burns with minimal to no scarring, offering a more cost-effective medical solution than current treatments, like skin grafting or advanced cellular therapies. – Second runner-up awarded $25,000.
Renewable Green Composites creates plastics and polymer building blocks from soybean meal to improve the sustainability of some plastics. Soy-based plastic beads and additives by Renewable Green Composites can be melted and molded into various non-durable outdoor applications, including golf tees, lawn toys and more. – Third runner-up awarded $20,000.
“The Soy Innovation Challenge has been a fantastic effort to showcase the most promising and innovative technology to promote the utility of soy in markets we know like feed, food, and fuel and new markets in consumer packaged goods (CPGs), medicine, and nonfood uses. We cannot thank the United Soybean Board, AWS and partners enough for believing in the challenge model and funding 3 of these exciting challenges over the past four years. We look forward to seeing where these finalists go and how they bring their soy innovations to market,” says Brandon Day, COO of The Yield Lab Institute.
Case IH Unveils New Axial-Flow Series Combine with Subscription-Free Tech for Unmatched Precision and Productivity
Case IH is incorporating industry-leading technology with the heritage of Axial-Flow® combines as the perfect harvesting partner for a wide variety of growers and custom harvesters with the new Axial-Flow 260 series. Purposefully designed for unparalleled productivity, growers can access subscription-free, integrated technology to meet the unique needs of their operations.
The premium technology built within the Axial-Flow 260 series combine sets a new standard for operator experience, while also maximizing throughput and grain handling with single-rotor Case IH harvesting technology.
“The Axial-Flow 260 series combine represents a significant leap forward in integrated technology throughout the harvesting process for growers,” says Leo Bose, harvesting segment lead at Case IH. “We purposefully bundled precision technologies so there are no subscriptions or activations required to run the machine. The subscription-free connectivity gives customers the ability to remotely view machine and agronomic data via the new Case IH FieldOps™ platform, which will launch later in 2024. The technology stays for the lifetime of the hardware, boosting resale value.”
The Axial-Flow 260 series is equipped with Harvest Command™ combine automation, which automatically optimizes settings to maximize throughput and grain quality, and features high-resolution Pro 1200 Dual Displays, giving operators easy access to machine metrics, field performance and grain quality in real-time. Additionally, growers can experience improved on-row accuracy, minimized header losses and less operator fatigue with the all new RowGuide Pro™ and AccuGuide™ autoguidance systems to maintain on-row accuracy even when stalks aren’t present. These tech solutions, including AccuSync™ with in-field data sharing between multiple machines, are all provided with no subscription required.
“The Pro 1200 Dual Displays give me complete visibility with all my combine data on one monitor and coverage maps on the other, so I’m no longer flipping back and forth between screens,” says Paul Paplow, farmer, custom harvester and vice president at U.S. Custom Harvesters, Inc. “Within just five minutes of using the Axial-Flow 260 series, with its real-time grain quality imaging feature, I could see the difference in superior grain quality.”
Building upon an enhanced operator experience, the Axial-Flow 260 series offers the new ActiveTrac four-roller hydraulic suspended track system. With a larger footprint, the ActiveTrac system reduces compaction and increases flotation by 14% compared to fixed track offerings. Operators will find a new level of comfort with luxury seating that includes massage, heating, and new air conditioning technology, along with simple seat controls, to easily optimize the operator's comfort level during long harvest days.
“We engineered this new track system to reduce the machine’s footprint because minimizing soil compaction is important to us and our customers,” adds Bose. “With a new track system, integrated tech and improved accuracy, the Axial-Flow 260 series combine is an operator’s trusted partner for one of the busiest times of year.”
Axial-Flow 260 series combines will be available for ordering in June 2024.
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