Thursday May 23 Ag News

 Beef production adds value to cropland
Alfredo DiCostanzo, Nebraska Extension Beef Systems Educator

It was not that long ago that corn grain prices traded above $6/bu; between 2021 and midyear in 2023 to be specific. At a production of 200 bu grain/acre, gross income from selling corn at $7/bu is $1,400 per acre. It is easy to be convinced this scenario is attractive. Yet, when one realizes that $1,400 gross income per acre from corn grain sales occur only about twice every 10 years and, that the cost of producing corn grain on an acre is now closer to $1,000, then real expectations for continued profit at these levels fade fast.

Alternatively, when the decision is made to add value to corn grain by feeding it to cattle, this scenario becomes more interesting. Feeding corn grain to cattle adds value to cropland: through grain sales and through manure application.

The simplest way to understand how cattle feeding adds value to cropland is to calculate the value of the crop (in this case corn) after subtracting all the out-of-pocket expenses from the gross return resulting from the sale of fed cattle. This value represents the gross dollars that can be allocated to corn cropland.

Net value of the crop can then be calculated after deducting the cost of raising the crop and margin expected when selling corn grain off the farm. Any balance remaining after these deductions represents the net margin to the cattle feeding operation. This approach also permits calculation of the credit resulting from applying manure nutrients generated from the cattle feeding operation.

Using current fed ($188/cwt) and feeder ($350/cwt) cattle prices with corn grain priced at $4.50/bu, and consumption of 77 bu of corn to raise a steer from 550 to 1,500 lb results in a residual value to allocate to cropland of $493 per head fed. Transforming this value to dollars per bushel (dividing $493 by 77 bu) results in a value of $6.37. This figure represents the dollar contribution to cropland by feeding corn grain to cattle. Comparing this figure to the $4.50/bu received at the local elevator demonstrates a gain in value (value added) of $1.90/bu; 42% increase in value to the corn crop.

In addition, manure produced from this operation should be credited with reducing the costs of fertilizer. This calculation requires taking into consideration fertilizer prices, application rates and debit to the cattle operation, if any, resulting from using corn residue for feed or bedding.

For the sake of simplicity, no residue use was considered, and application rates were 150 lb of N per acre and 50 lb of phosphate per acre. Fertilizer prices were $794, $779, and $513 per ton for anhydrous ammonia, diammonium phosphate and potassium chloride, respectively.

Using these figures, the value of manure was calculated at $9.85 per ton or $0.08 per head daily. Prorating this figure to the 287 days on feed results in a manure credit per head per feeding cycle of $23. This figure, divided by the corn usage allocated to each head (77 bu), results in additional value added to corn grain of $0.30/bu.

The total value of corn grain derived from feeding cattle and that derived from manure credit results in an increase in corn grain value from $4.50 to $6.67/bu. In a previous column, “Cattle, other feedlot costs and the economy (week of May 5)”, I estimated the contribution of cattle feeding to corn value using the current price of corn grain at the marketplace. Using the difference in market price ($4.50/bu) and value resulting from feeding cattle ($6.67/bu) or $2.17/bu and bushels used to finish

560,000 cattle in Cuming County yearly results in value added to corn cropland of 94 million dollars.

A few things come to mind when I derive these calculations: 1) beef business is sustainable because it sustains communities, and 2) I wonder what the world will look like if certain special interests have their way reducing or eliminating beef cattle production. Hopefully, I am not around to see the results of the latter; yet I would propose that climate patterns would remain unaffected by this change in eating habits, but society would be poorly nourished and less prosperous.

Please enjoy beef while honoring the sacrifice US military personnel made for this country.



NORTHERN PLAINS FARM LABOR

In the Northern Plains Region (Kansas, Nebraska, North Dakota, and South Dakota) there were 37,000 workers hired directly by farm operators on farms and ranches during the week of April 7-13, 2024, unchanged from the April 2023 reference week, according to USDA's National Agricultural Statistics Service. Workers numbered 30,000 during the week of January 7-13, 2024, down 9% from the January 2023 reference week.

Farm operators paid their hired workers an average wage of $19.68 per hour during the April 2024 reference week, up 6% from the April 2023 reference week. Field workers received an average of $21.12 per hour, up $1.77. Livestock workers earned $17.17 per hour, up $0.33 from a year earlier. The field and livestock worker combined wage rate, at $18.90, was up $1.03 from the April 2023 reference week. Hired laborers worked an average of 44.4 hours during the April 2024 reference week, compared with 41.8 hours worked during the April 2023 reference week.

Farm operators in the Northern Plains Region paid their hired workers an average wage of $19.77 per hour during the January 2024 reference week, up 5% from the January 2023 reference week. Field workers received an average of $21.61 per hour, up $1.58. Livestock workers earned $17.18 per hour, up $0.08 from a year earlier. The field and livestock worker combined wage rate, at $18.73, was up $0.68 from the January 2023 reference week. Hired laborers worked an average of 42.8 hours during the January 2024 reference week, compared with 40.0 hours worked during the January 2023 reference week.

CORNBELT REGION FARM LABOR REPORT
There were 19,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri) during the reference week of January 7-13, 2024, according to the latest USDA, National Agricultural Statistics Service – Farm Labor report. Farm operators paid their hired workers an average wage rate of $20.15 per hour, $1.10 above January 2023. The number of hours worked averaged 37.3 for hired workers during the reference week, compared with 36.7 hours in January 2023.

During the reference week of April 7-13, 2024, there were 22,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri). Farm operators paid their hired workers an average wage rate of $19.51 per hour during the April 2024 reference week, $1.26 above April 2023. The number of hours worked averaged 39.5 for hired workers during the reference week, compared with 39.7 hours in April 2023.

April Hired Workers Down 5 Percent; Wage Rate Increased 5 Percent from Previous Year
There were 618,000 workers hired directly by farm operators on the Nation's farms and ranches during the week of April 7-13, 2024, down 5 percent from the April 2023 reference week. Workers hired directly by farm operators numbered 496,000 during the week of January 7-13, 2024, down 3 percent from the January 2023 reference week.

Farm operators paid their hired workers an average wage of $18.98 per hour during the April 2024 reference week, up 5 percent from the April 2023 reference week. Field workers received an average of $18.25 per hour, up 6 percent. Livestock workers earned $17.43 per hour, up 6 percent. The field and livestock worker combined wage rate, at $17.98 per hour, was up 6 percent from the 2023 reference week. Hired laborers worked an average of 40.6 hours during the April 2024 reference week, unchanged from the hours worked during the April 2023 reference week.

Farm operators paid their hired workers an average wage of $19.49 per hour during the January 2024 reference week, up 5 percent from the January 2023 reference week. Field workers received an average of $18.51 per hour, up 5 percent, while livestock workers earned $17.52 per hour, up 5 percent from a year earlier. The field and livestock worker combined wage rate, at $18.10 per hour, was up 5 percent from the January 2023 reference week. Hired laborers worked an average of 38.7 hours during the January 2024 reference week, down 1 percent from the hours worked during the January 2023 reference week.



Center for Rural Affairs report: Solar development has minimal impact on ag land use

As renewable energy development grows in rural areas, so do concerns about protecting agricultural land, especially from utility-scale solar projects.

The U.S. Department of Energy (DOE) estimates that by 2050 solar will occupy 10.3 million acres of land nationally, 90% of which will be in rural areas. To address concerns about utility-scale solar systems occupying a large amount of prime farmland, some local and state officials have proposed and even placed restrictions prohibiting it.

Alex Delworth, policy associate with the Center for Rural Affairs, said the restrictions are concerning.

“They can be debilitating for solar development, not to mention raise questions about private property rights,” he said. “In one instance, we found a county-level restriction related to prime farmland that eliminated 75% of potentially developable land in the area.”

While utility-scale solar projects can look intimidating amid concerns about taking land out of production, a new report from the Center for Rural Affairs found their overall impact on agricultural land use is minimal.

“Sifting through Solar: Land-Use Concerns on Prime Farmland,” written by Delworth, discusses how restrictions are designed and forecasts solar development’s impact on prime farmland in the Midwest region.

The DOE predicts that between 210 and 420 GWs of solar projects are needed in the Midwest by 2050 to meet federal decarbonization standards. According to the report, if all of the forecasted solar was built on the region’s prime farmland, it would occupy between 1.45% and 2.9%.

The report also addresses potential short-term impacts in Iowa and Minnesota.

Delworth said if every acre currently proposed for solar development in Iowa was built on the state’s top 14% rated farmland (90 Corn Suitability Rating, or CSR, and above), it would occupy 0.54% of the total acres. Furthermore, the proposed solar would occupy only 0.14% of the top 62% rated farmland (65 CSR and above).

The projected impact in Minnesota is also minimal. According to the report, if the number of acres currently proposed were located on prime farmland, it would cover less than 0.3% of the land.

Delworth hopes local, county, and state officials will consider the report’s findings as they decide the future of solar development in their area.  

“Implementing rules that work with solar development rather than limiting it will open up economic opportunities for rural residents who want to voluntarily lease their land,” Delworth said. Renewable energy projects also generate tax revenue for counties, schools, and emergency services as well as create rural employment opportunities.

To read and download a copy of “Sifting through Solar: Land-Use Concerns on Prime Farmland,” visit cfra.org/sifting-through-solar.



First Greeneye Technology Dealership Opens in Nebraska

Greeneye Technology, the pioneer of AI precision spraying that is proven to reduce chemical use in farming by an average of 88%, has announced the opening of its first dedicated dealership. The company is partnering with Nebraska-based Boeck Seed Services to provide sales, installation and service to farmers in Nebraska and adjoining states, in the first of a planned nationwide network of dealerships to support the company’s ambitious expansion plans in the U.S.

Nadav Bocher, CEO, Greeneye Technology, comments: “We are delighted to announce the opening of our first dealership, which represents a significant ramp-up in our U.S. operation. Throughout our journey, we have been clear that for our business to be truly scalable, we need to establish strong links with local dealers. These are the people that farmers know and trust, and with their expertise and in-depth local knowledge, we believe they are the people best placed to provide excellent service and support for Greeneye customers. We are excited to collaborate with the fantastic team at Boeck Seeds and we look forward to announcing more partnerships soon.”

Located near Exeter, Nebraska, family-run Boeck Seeds has established itself as a leading retailer and farming equipment dealer and is already the number one precision planter dealer in the state, making it an ideal partner for Greeneye.

Commenting on the partnership, Cody Boeck, Operations Director at Boeck Seeds, says: “Weed control is without a doubt the biggest challenge facing our customers –  and at the moment, it is a challenge they are losing. Farmers want to be good stewards and spray less, not more, but at present, there is no way to do that without sacrificing yield. Greeneye’s retrofit system will change the game, enabling farmers to significantly reduce chemical use, and costs, without impacting the efficacy of their weed control strategies or reducing productivity, all while continuing to use their existing sprayer. We expect to see very high demand for this technology.”

Boeck Seeds has already begun to sell Greeneye systems for the 2025 season. In September, it will open a dedicated facility at its existing site where it will retrofit customers’ existing sprayers, ready for delivery next spring. It has also employed an extra salesperson to deal with the expected high level of demand.

During the retrofit process, the sprayer’s existing boom is replaced with Greeneye’s cutting-edge, proprietary 120ft aluminum boom, which is supplied pre-installed with the key components of the precision spraying system. These include 24 high-resolution cameras, 12 GPUs, 144 independently-controlled spray nozzles spaced at 10” intervals along the boom to ensure highly-accurate plant-level precision spraying, and 72 high-intensity lights to allow spraying to be carried out day and night. In addition, the sprayer’s existing single line/tank system is upgraded to Greeneye’s dual line/tank configuration. This feature enables farmers to simultaneously apply residual herbicides on a broadcast basis, while spot spraying non-residual herbicides via the Greeneye line, for ultimate weed control.

Once the retrofit process is complete, the Boeck team will deliver the sprayer to the customer, supporting them with in-field training to ensure a seamless transition to precision spraying, as well as providing ongoing operation and maintenance support.

Jerry Boeck, CEO, Boeck Seeds, comments: “In today’s market, the first question farmers must ask themselves when making any purchase is: how quickly can I make this investment profitable? With the Greeneye system, a mid-size farmer will see a return on their investment very quickly. At the same time, the benefits the system offers – a significant reduction in chemical use, and costs, and improved efficacy, all with no subscription fees – are very tangible. This makes it very simple for farmers to understand the value that this technology will bring to their operations.”

He concludes: “As a company that is highly experienced in selling and maintaining precision technologies, the Greeneye system is a very natural fit for us. We are proud to be Greeneye’s first install partner and excited to be on this incredible journey with them.”



Post-storm strategies for feedlot cattle producers

Mother Nature has created a new environment for northwest Iowa feedlot producers. Torrential rains have turned once-dry feedlots to mud, and accompanying hail may have bruised cattle. Iowa State University extension beef specialist Beth Doran said it's important to have a strategy and plan in place to deal with the issues facing producers.

“Wet, muddy conditions reduce weight gain and can compromise cattle health, so the first thing to tackle is mud,” she said. “While not perfect or easy, there are some emergency strategies for dealing with mud.”

Here are some suggestions.
    Where possible, place whole round bales of cornstalks, straw, or hay on areas with less mud. The cattle will tear up the bales and lay on the bedding.  
    If you cannot access dirt surfaces of the feedlot, scrape the bunk apron and concrete-surfaced areas to provide a dry, solid surface for cattle to lay down. Scrape the apron regularly to keep it dry and clean.
    On wide aprons over 20 feet, place bedding in areas beyond the 20 feet behind the bunk.  Continue to add bedding to form a bed pack and leave the bedding in place until feedlot conditions improve.

"Because hail can cause physical injury to cattle, be aware that marketing may need to be delayed if cattle were hailed upon," Doran said. "The extent of bruising depends on the size of the hail and how soon the cattle are marketed after experiencing hail."

Data from a Texas feedyard that experienced hail ranging from 1¾ to 3¾ inches in diameter indicates cattle sold within 15 days of being hailed upon had significant carcass bruising. However, by day 49 the bruising had returned to normal baseline levels.

For more information on dealing with post-storm issues, contact Doran at 712-737-4230 or email doranb@iastate.edu.



'Raising Your Dairy Best Heifer' Summer Webinar Series to Begin June 3

Join the Iowa State University Extension and Outreach dairy team as they discuss “raising your dairy best heifer” during a summer webinar series. The series will cover practical heifer management topics.

“Nearly 25% of a dairy's production costs are in raising heifer replacements, thus a considerable amount of feed, time and facilities must be invested to optimize growth for heifers to calve at an appropriate age,” said Jennifer Bentley, dairy specialist with ISU Extension and Outreach. “That is why this topic of raising your ‘dairy best’ heifers can have significant financial and herd benefits.”

Each session will cover a different topic related to heifer management, with a question and answer session at the end for any questions participants may have.

Dates and speakers
    June 3: Maternity Management – Howard Tyler, associate professor of animal science, Iowa State University. Holstein heifers.
    June 10: Heifer Feeding Strategies – Gail Carpenter, associate professor, dairy extension and outreach, Iowa State.
    June 24: Colostrum Management – Dr. Phillip Jardon, clinical associate professor, extension veterinarian, Iowa State University; and Jennifer Bentley, dairy specialist, ISU Extension and Outreach.
    July 8: Managing Heifer Inventory – Greg Palas, dairy records management system, and Fred Hall, dairy specialist, ISU Extension and Outreach.
    July 22: Heifer Health – Dr. Phillip Jardon, clinical associate professor, extension veterinarian, Iowa State.
    July 30: Heifer Reproduction – Victor Gomez, associate professor, extension dairy specialist, Kansas State University.
    Aug. 5: Heifer Benchmarking – Gail Carpenter, associate professor, dairy extension and outreach, Iowa State.
    Aug. 12: Heifer Grower Panel –  to be determined.
    Aug. 19: Economics of Raising Heifers – Larry Tranel, dairy specialist, Iowa State.
     
Those interested in participating in the webinar series can register online at https://go.iastate.edu/DAIRYBESTHEIFER.

For more information, contact dairy specialist Fred Hall at 712-737-4230 or fredhall@iastate.edu; Jennifer Bentley at 563-382-2949 or jbentley@iastate.edu; or Larry Tranel at 563-583-6496 or tranel@iastate.edu

Funding for this project was provided by the North Central Extension Risk Management Education Center, the USDA National Institute of Food and Agriculture under Award Number 2021-70027-34694.



USDA seeks feedback from producers about 2024 crops, stocks, inventories, and values

Over the next several weeks, USDA’s National Agricultural Statistics Service (NASS) will conduct two major mid-year surveys, the June Agricultural Survey and the June Area Survey. The agency will contact nearly 4,600 producers across Iowa to determine crop acreage and stock levels as of June 1, 2024.

“The June Agricultural Survey and the June Area Survey are two of the most important and well-known surveys NASS conducts,” explained Greg Thessen, Director of the NASS Upper Midwest Regional Field Office. “When producers respond to these surveys, they provide essential information that helps determine the expected acreage and supply of major commodities in the United States for the 2024 crop year. The results are used by farmers and ranchers, USDA, exporters, researchers, economists, policymakers, and others to inform a wide range of decisions.”

Producers can respond to the June Agricultural Survey online at agcounts.usda.gov, by phone, or mail. They will be asked to provide information on planted and harvested acreage, including acreage for biotech crops and grain stocks. For the June Area Survey, agency representatives will interview farm and ranch operators in randomly selected segments of land over the phone or in person. Producers will be asked to provide information on crop acreage, grain stocks, livestock inventory, land values, and value of sales.

“NASS safeguards the privacy of all respondents, by keeping all individual information confidential and publishing the data in aggregate form only to ensure that no operation or producer can be identified,” said Thessen. “We recognize that this is a hectic time for farmers, but the information they provide helps U.S. agriculture remain viable and capable. I urge them to respond to these surveys and thank them for their participation.”

NASS will publish the data in a series of USDA reports, including the annual Acreage and quarterly Grain Stocks reports June 28, 2024. These data also contribute to NASS’s monthly and annual Crop Production reports, the annual Small Grains Summary, annual Farms and Land in Farms and Land Values reports, various livestock reports, including Cattle, Sheep and Goats, and Hogs and Pigs, and USDA’s monthly World Agricultural Supply and Demand Estimates.

These and all NASS reports are available at nass.usda.gov/Publications/. For more information, call the NASS Upper Midwest Regional Field Office at (800) 772-0825.



USMEF Conference Opens with Focus on Differentiation, Long-Term Investment

Emphasizing the quality and consistency of U.S. red meat is the key to expanding the international customer base, according to the impressive lineup of opening day speakers on Wednesday at the U.S. Meat Export Federation (USMEF) Spring Conference in Kansas City. USMEF members from throughout the nation also learned about additional resources available to promote U.S. pork, beef and lamb in emerging markets through USDA’s new Regional Agricultural Promotion Program (RAPP).

USMEF Chair Randy Spronk, a pork and grain producer from Edgerton, Minn., welcomed  attendees with a reminder of how critical free trade agreements (FTAs) have been in creating global opportunities for the U.S. red meat industry.

“Would we have found success in South Korea if U.S. beef was still tariffed at 40% and U.S. pork at 25%?” Spronk asked. “Would we have been able to develop Central and South America, or the Dominican Republic, into reliable destinations for U.S. red meat?"

While they are not full-blown FTAs, Spronk also praised the market access gains achieved in the U.S.-China Phase One Economic and Trade Agreement and the U.S.-Japan Agreement.

“With the weak yen and other headwinds in Japan, imagine trying to compete effectively there if U.S. beef and pork were still at a tariff disadvantage,” Spronk noted.

USMEF President and CEO Dan Halstrom followed with an update on year-to-date export results for U.S. pork, beef and lamb. On the pork side, Halstrom explained that while shipments to leading market Mexico are on a record pace, U.S. pork is achieving broad-based growth in several regions. Halstrom noted that first quarter export value ($2.1 billion) equated to more than $64 per hog slaughtered, while March exports averaged nearly $71 per head.

March was also a great month for U.S. beef export value, which equated to nearly $455 per head of fed slaughter. The first quarter average was $408, up 9% from a year ago, which Halstrom said was a very encouraging metric.

“This tells me that the global consumer is willing to pay because they understand the value of U.S. beef,” Halstrom said. “We’re different. We’re higher value, higher perception. U.S. beef is not a commodity product, like a lot of our competitors. This is a key takeaway.”

Guest speaker Randy Blach, CEO of CattleFax, echoed these sentiments in explaining how U.S. beef competes for the consumer dollar, both in the U.S. and internationally.

“The biggest change in the beef industry has been quality,” Blach said. “And we can never lose sight of that – our niche is grain-fed, high-quality beef that really nobody else can produce around the globe. Those of you who are producers in the room, you have also invested in genetics and you have gotten paid dividends for those decisions.”

Blach also gave an update on the U.S. cattle industry’s herd rebuilding efforts. He noted that the U.S. herd is not yet in expansion mode, but liquidation has definitely slowed, and the herd size has stabilized. He cautioned that even when expansion does materialize, it will not mirror the previous expansion cycle.

“The cost of money is significantly different, and there’s a worry hanging over people’s heads about going back into a La Niña [weather pattern],” Blach said. “The last cattle cycle saw the most rapid expansion in the history of our industry in 2014 and 2015. This time I think we’ll get some expansion, but it's going to stretch out over a longer period of time.”

As for expanding exports, Blach stressed the need for patience and persistence in developing new markets.

“During my career at CattleFax, I have seen how USMEF is able to go into these markets and build a foundation,” he explained. “Japan didn't just become our biggest market overnight, did they? It took decades to build that market, to build confidence and to build relationships. This is not instant gratification that you're talking about. You need to have a vision of the decisions you're making today, and know that we may not see the fruit of those decisions until five or 10 years down the road.”

Daniel Whitley, administrator of USDA’s Foreign Agricultural Service, praised USMEF members for their productivity gains while also providing an update on RAPP funding allocations. He highlighted RAPP’s goal of helping U.S. exporters expand their customer base beyond traditional and established markets, focusing on regions such as Africa, Latin America and Southeast Asia.

Whitley noted that RAPP places a specific emphasis on Africa, which is projected to hold 25% of the world’s population by 2050. That same year, the planet’s total population is expected to reach 10 billion, which presents a massive food production challenge.

“There is no way – no way – that the global agricultural community will be able to solve the problem of feeding 10 billion people by the year 2050 if we don't embrace science, technology and innovation,” Whitley said. “All of the wonderful seed techniques, all of the wonderful techniques we use to grow livestock and farm animal products, we need all of these techniques. We're not going to find new land and plant our way out of this problem, so there's really only one path forward and I do think it's the embrace of science, technology and innovation.”

USMEF members also received unique insights about global food security issues from Kip Tom, former U.S. ambassador to the United Nations for Food and Agriculture. Ambassador Tom stressed that our national security is dependent on our food security, and he too emphasized the need to embrace production technologies.

“The innovation that has taken place in agriculture, whether it's on the livestock side, or the grain side, or food processing – it’s something we need to be very proud of,” Tom said. “We oftentimes say that the U.S. innovates, China replicates and the EU regulates. But we need to make sure we keep those in check, so that we can continue to innovate, grow our economy and grow this industry.”   

While Tom believes the U.S. must pay close attention to the global trade advances made by major agricultural competitors, he shares the opinion that an emphasis on quality will differentiate U.S. products and lead to continuing opportunities for American agriculture.

“When I look at Brazil, for example, and what they're exporting in terms of animal proteins, what they're doing in terms of exporting grains, the reality is, they're mostly exporting commodities,” said Tom. “And this is where the real opportunity is for U.S. agriculture – to make sure that we add value and ensure that we set ourselves apart in the global marketplace, to maintain and grow our markets.”

The USMEF Spring Conference continues through Friday, May 24. Thursday’s program will feature a panel discussion on consumer perceptions of red meat products, as well as meetings of USMEF’s sector-specific standing committees. Friday’s general session will focus on the organization’s efforts to build global demand for underutilized beef and pork cuts.



USDA Announces National Pork Board Appointments

The U.S. Department of Agriculture Wednesday announced the appointment of four members to the National Pork Board. All four appointees will serve three-year terms beginning June 2024 and ending June 2027.

The appointed members are:
    Pat Bane, Arrowsmith, Illinois
    Kevin Rasmussen, Goldfield, Iowa
    Jesse Heimer, Taylor, Missouri
    Dr. Seth Krantz, Jackson, Tennessee

The National Pork Board is administered under the authority of the Pork Promotion, Research, and Consumer Information Act of 1985. It became effective Sept. 5, 1986, when the Pork Promotion, Research, and Consumer Information Order was implemented. Assessments began Nov. 1, 1986.

More information about the board is available on the Agricultural Marketing Service (AMS) National Pork Board webpage and on the National Pork Board website, porkcheckoff.org.



NMPF Dairy Market Report

U.S. cheese exports posted a 20 percent year-over-year increase during 2024’s first quarter, a bright spot in a soft picture for domestic and overseas U.S. dairy products.

About 8.1 percent of total domestic cheese production was exported during the first quarter – a very strong number considering that the highest percentage of U.S. cheese production exported on an annual basis has been 7.1 percent. Growing cheese sales abroad is a key part of growing overall U.S. dairy exports.

Domestic cheese prices are showing strength following a year of mostly weak performance, partly due to this recent export strength. Meanwhile, butter prices have been mostly closer to $3/lb. than to $2/lb. since the beginning of 2022.

Feed prices have moderated considerably over the past year, as measured by the Dairy Margin Coverage feed cost formula. Coupled with slowly improving milk prices, they have increased the DMC margin to around the $9.50/cwt maximum Tier 1 coverage level under the program, with further increases likely.

View Full Report here: https://www.nmpf.org/cheese-exports-boost-u-s-dairy-market/.



Weekly Ethanol Production for 5/17/2024

According to EIA data analyzed by the Renewable Fuels Association for the week ending May 17, ethanol production increased 1.9% to a 6-week high of 1.02 million b/d, equivalent to 42.80 million gallons daily. Output was 3.7% more than the same week last year and 6.4% above the five-year average for the week. The four-week average ethanol production rate rose 1.6% to 993,000 b/d, which is equivalent to an annualized rate of 15.26 billion gallons (bg).

Ethanol stocks declined 1.1% to 24.2 million barrels. Yet, stocks were 9.8% more than the same week last year and 9.5% above the five-year average. Inventories thinned across all regions except the Gulf Coast (PADD 3).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, leapt 5.0% to 9.32 million b/d (143.19 bg annualized). Demand was 1.3% less than a year ago but 5.0% above the five-year average.

Refiner/blender net inputs of ethanol scaled up 1.6% to 935,000 b/d, equivalent to 14.37 bg annualized and the largest level since early July 2021. Net inputs were 0.6% higher than year-ago levels and 6.0% above the five-year average.

Ethanol exports were estimated at 83,000 b/d (3.5 million gallons/day), or 9.8% below the prior week. There were zero imports of ethanol recorded for the 35th consecutive week.



Urea Leads Majority of Fertilizer Prices Lower

Average retail prices for most fertilizers were lower during the second week of May 2024, according to sellers surveyed by DTN. This was the second week in a row that most fertilizer prices were lower.

Also, like last week, the price of just one fertilizer saw a significant move, which DTN designates as anything 5% or more. That was the price of urea, which was down 5% from a month ago. The nitrogen fertilizer had an average price of $556 per ton.

Prices of four other fertilizers were just slightly less expensive compared to last month. MAP had an average price of $829 per ton, potash $511/ton, anhydrous $792/ton and UAN28 $364/ton.

Three fertilizers were slightly higher in price from last month. DAP had an average price of $789/ton, 10-34-0 $642/ton and UAN32 $418/ton.

On a price per pound of nitrogen basis, the average urea price was $0.60/lb.N, anhydrous $0.48/lb.N, UAN28 $0.65/lb.N and UAN32 $0.65/lb.N.

Once again, all fertilizers are lower compared to one year ago. MAP is 1% lower, DAP is 5% less expensive, anhydrous is 12% lower, 10-34-0 is 13% less expensive, UAN28 is 14% lower, urea is 18% less expensive and both potash and UAN32 are now 19% lower compared to a year prior.



PASSED: House Approves Bipartisan FIT21 to Provide Digital Asset Clarity

Yesterday, the U.S. House of Representatives passed H.R. 4763, the “Financial Innovation and Technology for the 21st Century Act, by a margin of 279-136. FIT21 provides the robust, time-tested consumer protections and regulatory certainty necessary to allow digital asset innovation to flourish in the United States.

"Clarity in digital assets is crucial. Today's bipartisan passage of FIT21 is a significant milestone. It underscores the House Committees on Agriculture and Financial Services' efforts to establish a much-needed regulatory framework," said Chairman Glenn 'GT' Thompson (PA-15). "This framework is designed to protect consumers and investors while fostering American leadership in the digital asset space. I extend my thanks to Chairman McHenry for his leadership and that of our subcommittee chairs, Rep. Johnson and Rep. Hill, in moving this legislation."

On July 20, 2023, Chairman Glenn “GT” Thompson, Rep. French Hill, Rep. Dusty Johnson, Whip Tom Emmer, and Rep. Warren Davidson introduced H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT21). Chairman Patrick McHenry is a cosponsor of the legislation.
 
FIT21 establishes clear and functional federal requirements over digital asset markets. It provides the robust consumer protections and regulatory clarity necessary for the digital asset ecosystem to thrive in the U.S.—cementing American leadership of the global financial system of the future while reinforcing our role as a hub for innovation.
 
The legislation provides the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital commodities and clarifies the Securities and Exchange Commission’s (SEC) jurisdiction over digital assets offered as part of an investment contract. Additionally, the bill establishes a process to permit the secondary market trading of digital commodities if they were initially offered as part of an investment contract. Finally, H.R. 4763 imposes comprehensive customer disclosure, asset safeguarding, and operational requirements on all entities required to be registered with the CFTC and/or the SEC.
 
FIT21 will protect consumers by strengthening transparency and accountability with market participants:
    Digital asset developers will be required to provide accurate, relevant disclosures, including information relating to the digital asset project’s operation, ownership, and structure; and
    Digital asset customer-serving institutions, like exchanges, brokers, and dealers will be required to:
    Provide appropriate disclosures to customers;
    Segregate customer funds from their own; and
    Reduce conflicts of interest through registration, disclosure, and operational requirements.
 
FIT21 will strengthen the market by protecting digital asset projects:
    Digital asset developers will have a pathway to raise funds; and
    Participants will have a clear process to determine which digital asset transactions are subject to the SEC’s jurisdiction and the CFTC’s jurisdiction.
     
FIT21 will protect digital asset customer-serving institutions by:
    Establishing clear lines between the SEC and CFTC; and
    Creating comprehensive registration regimes to permit them to lawfully serve customers in digital asset markets.



Congressman Mike Flood’s Statement on FIT21’s Passage

Today, U.S. Congressman Mike Flood issued a statement following the passage of H.R. 4763, the Financial Innovation and Technology (FIT) for the 21st Century Act, also known as FIT21.

“FIT21 delivers a digital asset framework that provides meaningful regulatory clarity, fosters innovation, and protects American investors. Since FTX’s collapse in 2022, there’s been broad awareness of the need for investor protection rules to prevent this from ever happening again. Under the framework adopted today, FTX would not have been able to register or cause the massive harm they did to American investors. Thank you to Chairman McHenry and Chairman Thompson for their work in assembling a broad bipartisan coalition of support for this important legislation, and I urge my colleagues in the Senate to take it up quickly so that we can protect investors and grow our digital financial future.”



Senate committee advances bipartisan WRDA

The National Grain and Feed Association (NGFA) today commended the Senate Committee on Environment and Public Works for unanimously advancing the Thomas R. Carper Water Resource Development Act of 2024 (WRDA), which authorizes navigation and ecosystem restoration projects for the U.S. Army Corps of Engineers (Corps). NGFA released the following statement:

“Today’s markup demonstrates the dedication of Chairman Tom Carper, D-Del., and Ranking Member Shelley Moore Capito, R-W.Va., and fellow lawmakers to maintaining waterways infrastructure legislation on a biennial basis in a bipartisan fashion. In addition to authorizing 81 feasibility studies and eight new or modified construction projects, this bill directs the Corps to expedite the completion of several ongoing studies and projects from past WRDAs. The U.S. inland waterways system is essential to the operation of NGFA-member companies and the agricultural supply chain, with barges moving about half of all grains to export grain elevators. Efficient inland locks and dams and modern ports are critical to America’s comparative infrastructure advantage. We appreciate the efforts of committee leaders and Transportation and Infrastructure Subcommittee Chairman Mark Kelly, D-Ariz., and Subcommittee Ranking Member Kevin Cramer, R-N.D.”



Ricketts Supports EPW’s Water Resources Bill with Major Conservative & Nebraska Wins

Wednesday, U.S. Senator Pete Ricketts (R-NE) released the following statement on the Senate Committee on Environment and Public Works’ passage of the bipartisan Thomas R. Carper Water Resources Development Act (WRDA) of 2024.

“This bill has so many wins for the state of Nebraska,” said Senator Ricketts. “I appreciate that this bill outlines priorities for the U.S. Army Corps of Engineers that will improve customer service, help our state build more resiliently, reduce flood risks, and promote economic growth.”

The WRDA 2024 grants the U.S. Army Corps of Engineers (USACE) authorization to proceed with projects and studies aimed at addressing water resource challenges in communities nationwide, including several in Nebraska.

Ricketts’ WRDA Wins for Nebraska

Demand Better Customer Service:
    Sec. 106 would require the USACE to update the Permit Finder Dashboard within 30 days of the end of the fiscal year and reflect the current processing timelines. This would ensure users are being given the most updated estimates for processing timelines.
    Sec. 233(c) would direct the Government Accountability Office to review and issue a report on trends, public resources, and opportunities to expedite the review of applications for permits under the Section 408 program, including the use of categorical permissions.

Improve Ice Jam Management
    Sec. 221 would require USACE to submit a report to Senate Committee on Environment and Public Works the on ice jam prevention and mitigation, as well as plans for engagement with state and local stakeholders regarding impacts to critical infrastructure.
    Sec. 313 increases funding levels for the existing removal of obstructions fund and includes ice jams as a covered obstruction.

Require More Transparency
    Sec. 223 would require USACE to brief the Senate Committee on Environment and Public Works on opinions or funding requests in order carry out the actions in the Missouri River Mainstem Reservoir System, the operation and maintenance of the Bank Stabilization and Navigation Project, the operation of the Kansas River Reservoir System, and the implementation of the Missouri River Recovery Management Plan.
    Sec. 233(a) would require more accurate project cost estimates. It would direct the GAO to review and report on the accuracy of project cost estimates developed by the USACE.
    Sec. 233(f) would direct the GAO to review and issue a report on opportunities to facilitate improved environmental review processes for project studies, including through the consideration of expanded use of categorical exclusions, environmental assessments, or programmatic environmental impact statements.
    Sec. 338 urges the USACE to make decisions regarding the operations of civil works projects within the Missouri River Basin publicly available, increasing transparency for communities in the Basin.



Memorial Day Travelers Could Save Millions by Filling Up with Unleaded 88 (E15)

This Memorial Day weekend, AAA projects 38.4 million drivers will hit the road over the holiday, the second-highest travel forecast for the holiday since the organization began tracking in 2000. Based on this data, Growth Energy, the nation’s largest biofuel trade association, estimates that U.S. consumers would collectively save up to $115 million in fuel costs this weekend by choosing Unleaded 88 (E15) —a fuel blend made with 15% bioethanol.

“This summer, drivers across the country can save big money with lower-carbon Unleaded 88,” said Growth Energy CEO Emily Skor. “As we kick off the summer driving season, we encourage motorists to take advantage of the deep cost savings and environmental benefits of this engine smart, earth kind fuel option.”

Thanks to the Biden administration’s recent announcement of a waiver protecting year-round access to the higher biofuel blend, motorists looking to save money at the pump can fuel up with a lower-carbon option that’s also more affordable than standard fuel. In fact, last summer consumers saved 15 to 30 cents per gallon on average at the more-than 3,400 gas stations nationwide that offer E15, also branded as Unleaded 88 (UNL88).  

“The summer travel season has the potential to be an expensive period for many Americans, spending money on lodging, meals, and activities,” added Skor. “Fortunately, thanks to the affordable and homegrown renewable fuel options generated by American farmers and biofuel producers, consumers have access to E15, which is more affordable and widely available.”

Apart from the cost savings, E15 also offers an immediate opportunity to cut carbon emissions by as much as 17.62 million tons. It can be used in 96 percent of vehicles on the road today and contributes to cleaner air, reducing smog-forming pollutants and lowering emissions of particulate matter up to 50 percent compared to gasoline.  

Travelers can plan their road trip and locate gas stations selling Unleaded 88 (E15) and other ethanol blends using the Get Biofuel Fuel Finder. To date, Americans have driven more than 100 billion miles on Unleaded 88.