The American consumer
Alfredo DiCostanzo, Nebraska Beef Systems Extension Educator
The business of producing a commodity such as beef, which Cuming County leads in Nebraska and the nation, relies on consumers who are satisfied by the value (wholesomeness, nutrition, and flavor) given price. The beef industry has responded to issues that were evident in the early findings by the National Beef Quality Audit. In 2022, the American consumer paid $7 per pound of beef at the retail level when beef production reached 28.2 billion pounds. In 2007, at similar production (28.1 billion pounds), the retail price for beef was only $3.77 per pound.
This begs two questions: what expenditures the American consumer spends money on? How might an average American consumer perceive expenditures on beef relative to other expenditures?
A recent report from the Bureau of Labor Statistics on Consumer Expenditures in 2022 described what the average annual expenditures ($72,967) for an American consumer unit (household including 1.3 earners per household) were. Rather than spending time describing these in extreme detail, it may be wise to prioritize them based on expenditures dedicated for everyday living (survival) followed by expenditures on items that
contribute to our future living (insurance premiums), and lastly for quality of life (entertainment).
When thus categorized, one might say that food expense is a top priority followed by shelter. Yet, transportation expenses follow as most individuals must commute to participate in the workforce.
Food expenditures by American consumers in 2022 were the lowest of the three top expenditures for everyday living at 12.8% ($9,300). Shelter was the costliest at $24,200 or 33.3% of annual expenditures. That year, Americans spent $12,300 in transportation or 16.9% of annual expenditures.
Incidentally, annual beef expenditures for at home consumption were only $317 or 3.3% of total food expenditure. Perhaps this is the reason beef consumption is more resilient to changes in beef price than expected.
Overall, consumption of meat, poultry, fish, and eggs costs the average American consumer $1,215 annually or 13% of food expenditures. It makes an American consumer (and voter) wonder what significance, if any, a cap on food prices, particularly meat and poultry, will have on American consumer expenditures. On the other hand, this measure will likely have a greater effect on producers than on consumers.
In 2022, the average American consumer spent only 4.7% ($3,500) of their total expenditures on entertainment and a grand total of 1.3% (under $1,000) on alcohol and tobacco. Of the dollars spent on entertainment, expenditures on pets make up 22% of that total. Owning and caring for a pet is beneficial to those participating in their care.
In contrast, the average American consumer spent 12% ($8,742) of their annual expenditure preparing for the future by investing in pensions and social security. They also spent $3,800 (5.6% of expenditures) on health insurance.
If we were to base our assessment of the American consumer on how TV, radio, and social media commercials depict us, one might surmise that the American consumer is self-centered, irresponsible, and wasteful. Yet, this simple evaluation of data on American consumer expenditures reflects logic, moderation, and planning for their future.
KERNEL PROCESSING FOR QUALITY CORN SILAGE
- Ben Beckman, NE Extension Educator
High value silage depends on maintaining chop quality throughout harvest. Do you know how to reliably monitor your silage quality?
Energy from corn silage comes in a large part from starch in the grain itself. After consuming however, the outer seed coat impedes starch digestion. To counter act this, many modern choppers are fitted with a kernel processor, that physically crushes or damages the grain and stalks, improving digestibility. Correctly setting these rollers is critical. Too close and machine ware increases, too far apart and they kernels aren’t broken and digestibility is decreased.
To achieve high quality silage, catching any problems with the processor as soon as possible is critical. To do this, grab a 32 oz. cup and at least once an hour during harvest, grab a sample from the pile.
Next spread the sample out on a flat surface like a card table near the pile and go through the kernels. Count all the kernels that are ½ or greater in size. You can also put the sample into a bucket of water. The kernels will sink to the bottom and stalks and leaves will float. Skim/drain off the top layer and again count any kernels that are ½ or greater in size.
For both methods, the goal is to have 2 or fewer whole or ½ size kernels in your count. Anything over that and word can be passed to the chopper to adjust the processing.
For those who don’t have access to a kernel processer, keeping chop length short can help accomplish similar results. Shortening chop length to 3/8 inch for machines without a processor will do more kernel damage and maintain similar fiber particle size. For those who’s priority is not particle size, mostly beef producers, dropping down to ½ inch chop length will damage even more kernels and provide the additional benefit of helping get a better pack.
NDA AND AGRICULTURE MAKE THE STATE FAIR, A GREAT FAIR
From farm-friendly livestock competitions to favorite foods on a stick, state fairs are a beloved tradition centered around agriculture. The Nebraska State Fair runs through Sept. 2 at Fonner Park in Grand Island. Since Nebraska agriculture is at the core of the State Fair, the Nebraska Department of Agriculture (NDA) is on hand making sure that this year’s celebration will be a great one.
Raising Nebraska, an interactive experience for people wanting to learn more about agriculture and natural resources, is especially busy during the State Fair. During Nebraska’s Largest Classroom events at the Raising Nebraska building, NDA staff will share fun facts about Nebraska agriculture. NDA’s Food Safety staff will be in the Raising Nebraska building, too, showing students how important it is to fight germs by washing their hands the right way.
Throughout the State Fair, NDA Animal and Plant Health staff will be available to share program information and talk with Nebraskans about agriculture. NDA veterinarians and staff are helping at the birthing pavilion this year, teaching people about livestock care and the importance of biosecurity to help prevent animal diseases. A state veterinarian booth located on the south wall of the cattle barn will have NDA staff available to answer questions.
NDA staff with information from our Noxious Weeds program will be available at the Pinnacle Bank Expo building throughout the fair for several days, as well.
Youth organizations like 4-H and FFA continue to play a pivotal role at the State Fair, ensuring that the next generation of farmers and agricultural leaders is actively involved in Nebraska’s ag industry. NDA staff will honor the 4-H and FFA members who entered our Poultry Photography contest by announcing the winners of the contest at the State Fair. Winning photos will be featured in a 2025 calendar that also includes biosecurity tips to keep poultry flocks healthy.
Livestock competitions, gardeners’ best produce selections, and baked goods competitions reinforce the importance of agriculture in feeding the nation. These events not only highlight the quality and diversity of Nebraska agriculture, but they also serve as educational opportunities for people to learn more about agriculture and where food comes from.
Agriculture produces the food, feed, and fuel that Nebraskans rely on every day. When you are enjoying your day at the State Fair, be sure to take time to experience the best agriculture that Nebraska has to offer.
Farm Athletes Is Creating Opportunities for College Athletes from Farm and Ranch Backgrounds
Tractor Tuesday, a new online auction platform for agriculture machinery, proudly presents Farm Athletes, a groundbreaking initiative dedicated to supporting NCAA college athletes from farm and ranch backgrounds. This initiative is set to provide NIL (Name, Image, Likeness) deals that will empower these hardworking student-athletes to excel both on the field and in the classroom while honoring their agricultural roots.
Farm Athletes was established to create opportunities for college athletes who come from the farming and ranching communities, acknowledging their unique challenges and achievements. By leveraging the evolving NIL landscape, Farm Athletes offers these athletes the financial support they need to balance their academic and athletic commitments by alleviating some of their financial strain.
Tractor Tuesday, a cutting-edge platform revolutionizing how agricultural machinery is bought and sold, has launched Farm Athletes to make this vision a reality. Tractor Tuesday is committed to providing farmers and ranchers with the best auction platform to buy and sell agriculture machinery. Now, through its launch of Farm Athletes, it will help elevate the next generation of athletes who represent the heart and soul of rural America.
The sponsorship agreement will see Tractor Tuesday providing financial support to Farm Athletes, which will be used to create and manage NIL deals for selected athletes. These deals will not only offer monetary compensation but also include opportunities for personal branding, marketing collaborations, and community engagement initiatives. The partnership underscores Tractor Tuesday’s commitment to supporting the communities that are fundamental to its business.
“We’re excited to support Farm Athletes and contribute to the development of student-athletes who come from farm and ranch backgrounds,” said Zach Bosle, CEO of Tractor Tuesday. “Our platform’s mission is deeply rooted in agricultural excellence, and by backing Farm Athletes, we’re not just investing in these talented individuals but also in the future of agriculture.”
Jordan Carstens, a former 'farm kid' who was an ISU walk-on and then an NFL player, has endorsed the initiative. Carstens says, “Agriculture and athletics share several positive qualities, and both contain stories that interest many Americans.” He talks about how stories of farm athletes are “compelling and rare due to the dwindling number of family farms and the amount of time required to invest to reach the collegiate level.” Cartens says that “any time ag companies can support these farm kid athletes, both sides and the industry as a whole can benefit. FarmAthletes.com helping to facilitate this goal is an excellent idea.”
Farm Athletes is now accepting applications from eligible NCAA athletes, with a selection process that emphasizes athletic performance, academic achievement, and a demonstrated connection to agriculture. By highlighting the stories and achievements of these athletes, Farm Athletes hopes to inspire others from similar backgrounds to pursue their dreams and succeed in both their academic and athletic endeavors. Please visit the Farm Athletes website https://farmathletes.com/ for more information and inquiries.
CAP Webinar: Determining What is Fair in Cow Leasing: Cash vs. Shares
Sep 5, 2024 12:00 PM
With Aaron Berger, Livestock Systems Educator, Nebraska Extension
Fall is the time of year when cow-calf share or cash leasing agreements are often initiated or renegotiated. Understanding the value of what the cow owner and the person who cares for the cows provides in the production of weaned calves is critical to establishing a cow-calf share or cash lease agreement that is equitable. The advantages and disadvantages of both a cash lease and a cow-calf share agreement will be discussed. Common questions and key things that need to be talked about will be reviewed.
Register for the webinar here: https://cap.unl.edu/webinars.
Grain Indemnity Fund Assessment to Continue for Additional Year
The assessment on grain sold to or deposited at Iowa-licensed grain dealers and warehouses as part of the Iowa Grain Depositors and Sellers Indemnity Fund (Grain Indemnity Fund) will continue for an additional year. Barring any further claims made against the fund, the assessment is anticipated to cease on August 31, 2025, in accordance with Iowa law.
Due to claims made against the Fund following grain facility failures in 2021 and 2022, the balance of the Fund fell below the statutory threshold of $3 million. By law, this required the Grain Indemnity Fund Board to reinstate the participation fees for grain dealers and warehouses as well as a ¼ cent per bushel assessment. The assessment was reinstated on September 1, 2023. Under existing law, the assessment must remain in effect for at least one full year and must also remain active until the Board votes to suspend the collection of fees or the Fund reaches a balance of $8 million.
Prior to the start of the assessment, the balance of the Fund was $311,929.98. Assessment collection during the first three quarters, which occurred in December 2023, March of 2024 and June of 2024, has produced a balance now of $4,731,299.22. The final quarter of assessment for this current year will be collected in September of 2024. Based upon fourth quarter collection estimates, the fund balance is not expected to exceed $8 million at that time. Therefore, under law, the assessment must continue, and the Grain Indemnity Fund Board has authorized a second full year of assessment, which will now run through August 31, 2025.
Created by the Iowa Legislature in 1986 during the Farm Crisis to provide financial protection to farmers, the Grain Indemnity Fund covers farmers with grain on deposit in Iowa-licensed warehouses and grain sold on a cash basis to state-licensed grain dealers. In the case of a failure of a state-licensed grain warehouse or grain dealer, the Fund will pay farmers 90 percent of a loss on grain up to a maximum of $300,000 per claimant. Over the history of the Grain Indemnity Fund, more than $19 million in claims have been paid to more than 1,600 grain producers. The Fund has generated approximately $9 million in assessed fees, which were last collected in 1989. Since that time, the Fund was able to recover claim losses from defunct grain dealers and warehouses that when combined with interest earned on the Fund, provided enough additional revenue to prevent the reinstatement of the assessed fees.
The Iowa Department of Agriculture and Land Stewardship’s Grain Warehouse Bureau regulates and examines the financial solvency of grain dealers and grain warehouse operators to protect Iowa farmers. The Grain Warehouse Bureau is responsible for administering the Iowa Grain Depositors and Sellers Indemnity Fund. Members of the Iowa Grain Depositors and Sellers Indemnity Fund are appointed by the Governor and are subject to confirmation by the Iowa Senate. More information can be found on the Iowa Department of Agriculture and Land Stewardship’s website.
Landus Introduces New Farmer-Focused Health Coverage to Meet the Growing Needs of Farmers
Landus, an Iowa-based agriculture solutions company, today announced new farmer-focused health coverage options through Landus Health and Conduit Health. This unprecedented initiative, powered by Momentum Ag, a Division of Patriot Growth Insurance Services, LLC, will provide comprehensive coverage through a nationwide provider network, ensuring health care is affordable and accessible for thousands of farmers across the nation.
Historically, health programs have been overwhelmingly expensive, and coverage has been limited across the ag industry, with farmers paying the majority of their healthcare expenses out of pocket. Landus Health and Conduit Health make health coverage available for farming operations of any size and is specifically designed with rural families’ needs in mind.
Landus Health and Conduit Health offer:
⦁ Comprehensive Coverage: Program includes $0 preventative and telemedicine along with care coordination and disease management for chronic conditions.
⦁ At-Home Access to Care: All farmers who sign up for Landus Health or Conduit Health will receive a TytoCare kit for convenient, efficient at-home access to health providers and diagnoses regardless of proximity to provider locations.
⦁ Affordable Program Options: Multiple program options are offered to fit every budget with solutions for employee only, employee/spouse, employee/children, or family.
⦁ Nationwide Provider Network: Available options use the Cigna nationwide network, so it’s easy to find an in-network provider wherever you are.
“This is a gamechanger for farmers everywhere,” said Dee McCune, Health Program Project Lead at Landus. “As a farmer myself, I know first-hand the challenges that many face in this industry. Through Landus Health and Conduit Health, it will now be easier than ever for farmers to have affordable nationwide coverage for not just themselves, but their families and employees.”
“We listened to our farmers. There have not been affordable health coverage options out there for them without a member of their family finding a job away from the farm. Landus Health and Conduit Health will change that,” said Matt Carstens, Landus and Conduit President & CEO. “Rural vitality is central to our mission here at Landus and affordable, high quality health coverage is a key part of that. I look forward to partnering with a farmer-focused company like Momentum Ag to get this critical support in the hands of farmers.”
“Working with companies like Landus who truly put the farmer at the center is one of the many reasons why I founded Momentum Ag,” said Lucas Strom, Founder & CEO of Momentum Ag. “Accessible and affordable health coverage is hard to come by in rural communities, and we are changing that. Everyone should have access to affordable health program options, from one person to one family to a company with over 100 employees and everything in between.”
Enrollment is available now. To apply, please visit landushealth.ag or conduithealth.ag. A representative will be available M-F, 9-5 p.m. CT to answer any questions, and can be reached at (877) 892-3303.
Growth Energy: California LCFS Updates Stack the Deck against American Biofuels
Growth Energy, the nation's largest biofuel trade association, submitted new comments to the California Air Resources Board (CARB) today, criticizing the board’s latest updates to California’s Low Carbon Fuel Standard (LCFS) for unfairly singling out American biofuels in a way that will make it hard for them to generate credits under the program.
Specifically, Growth Energy objected to a proposed "sustainability certification" requirement, calling it "an unfair and unnecessary double penalty for corn starch bioethanol."
“The [economic impact analysis] (EIA) acknowledges potential direct and indirect land use change (LUC) ‘is at least partially (and potentially fully) accounted for by the LUC scores added to crop-derived pathways,’” said Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley in the comments. “This acknowledgement renders the need for a sustainability certification moot as potential LUC concerns for crop-based feedstocks are addressed.”
Furthermore, farmers that produce corn and other crops used in the production of biofuels would be required to use climate smart agriculture practices to qualify for the “sustainability certification.” However, those same farmers would still not receive any credit for the emissions-reducing impact of deploying those practices under the LCFS.
"While the most recent proposal details the 'best environmental management practices' required for biomass used in fuel pathways, and those CSA practices result in the reduction of carbon emissions, CARB continues to disregard these and other practices when factoring carbon intensity (CI) scores," Bliley added. "The use of these practices for measured carbon reduction is not new. Other state agencies are using some of these same practices to reduce the release of soil carbon in the state’s natural and working lands.”
"CSA practices are an important component to bioethanol’s continued efforts to get to net-zero," Bliley added. "We urge CARB to recognize these practices and their carbon-reduction potential and allow CSA practices to be considered when determining a pathway’s CI."
EarthOptics, Pattern Ag Merge to Digitize Soil Health for Climate and Agriculture
EarthOptics and Pattern Ag have merged, creating a category leader in soil digitization to power advanced crop management and climate sustainability.
The newly combined soil intelligence company will be the authoritative source of soil insights and the leader in Predictive Agronomy. Its comprehensive data will enable farmers, ranchers and their advisors to know their soil’s exact physical, chemical, and biological properties, helping them plan their most impactful input and management decisions to maximize profitability and sustainability goals.
The combination pairs Pattern Ag’s cutting-edge lab-based analysis with proprietary field-based sensing technologies from EarthOptics, to create a high-resolution digital twin of the soil, giving farmers and ranchers insights into pests and pathogens, biofertility, nutrients, soil compaction, carbon levels, moisture and more.
“This merger will give farmers and ranchers the most comprehensive snapshot of the soil under their feet,” says Lars Dyrud, current EarthOptics CEO and the CEO of the merged companies. “Historically, soil measurement insights have been limited in scope and imprecise. We now have the technology to tell farmers what’s in their soil with a high level of precision, and with the addition of Pattern analytics, we can offer them insights into what to plant and how to manage their most impactful decisions throughout the growing season.”
“As the leader in Predictive Agronomy, our insights help farmers know their risks and opportunities before they plant in order to create the optimal plan for next season,” says Rob Hranac, CEO of Pattern Ag. “By pairing this with EarthOptics field-based technologies, we can increase the breadth of soil insights into exciting new categories while amplifying the resolution of most analytics by 100 times or more”.
The new company will operate under the EarthOptics name and aim to make it easy to turn soil insights into farm profitability and productivity. With this merger, one soil sample will generate more data and predictive power across physical, chemical, and biological soil properties. By integrating methods and technologies, the newly expanded company will deliver more data and agronomic insight to customers while rapidly scaling operations.
“Together, the new company will shape the future of soil agronomy, delivering unprecedented value and insights to farmers worldwide,” Dyrud says.
Soybean Seed Treatment Expands Protection Against Early-season Challenges
Corteva Agriscience™ continues to enhance its industry-leading LumiGEN® seed treatment portfolio, by introducing key upgrades to its soybean seed treatment offering to help growers confidently face early-season growing challenges. The LumiGEN® seed treatment portfolio for soybeans now includes Lumiante® fungicide seed treatment and Phalanx™ insecticide seed treatment.
“This package gives growers more peace of mind, knowing the chances of getting their soybeans off to an excellent start are even better with this recipe,” said Brad Van Kooten, Seed Applied Technology Leader, Pioneer Seeds.
Lumiante® fungicide seed treatment
Lumiante® provides superior control of Pythium, and works against more strains of the soil-borne disease than previous LumiGEN® seed treatment offerings.
“Lumiante® fungicide seed treatment increases stand success rate in cold, wet conditions where Pythium is known to thrive,” Van Kooten noted, “which is critical as more farmers are planting earlier and in more difficult conditions.”
Lumiante® fungicide seed treatment brings another mode of action against Pythium and is effective against metalaxyl-resistant species. Lumiante fungicide seed treatment supplements the solid disease protection already included in the LumiGEN® package; LumiTreo™ fungicide seed treatment provides industry-leading protection against Phytophthora, widely regarded as the most significant disease affecting soybean yield in North America.
Phalanx™ insecticide seed treatment
The 2025 LumiGEN® insecticide package will also be enhanced with the introduction of Phalanx™ insecticide seed treatment, which will replace Gaucho® seed treatment.
“Phalanx™ insecticide seed treatment is part of a proven family of chemistry and is labeled against more insect species than Gaucho®,” said Van Kooten. “Phalanx™ insecticide seed treatment has a water-based formulation, which improves its drying properties compared to Gaucho® seed treatment.”
For growers seeking even more robust seed protection, Corteva offers the option to add ILEVO® seed treatment and Lumiderm® insecticide seed treatment to the premium LumiGEN® seed treatment package. ILEVO seed treatment helps protect against soybean cyst nematode (SCN) and sudden death syndrome (SDS). When added to the package that already includes Phalanx insecticide seed treatment, Lumiderm® insecticide seed treatment provides an additional mode of action against key insect pests including seedcorn maggot, wireworm, white grub and bean leaf beetle.
This improved LumiGEN® soybean seed treatment package demonstrates a continued commitment from Corteva to help farmers protect their investment in high-yielding genetics, such as new Pioneer® brand Z-Series soybeans.
“With LumiGEN® seed treatments, farmers can rest assured they’ve protected against early-season stand losses in a broad range of conditions,” said Van Kooten. “When a farmer drives by their field and sees a healthy stand, they can feel good they’ve done the best they can to get the most out of their Pioneer genetics.”
The latest LumiGEN® soybean seed treatment package will be available this spring.
Wednesday, August 28, 2024
Wednesday August 28 Ag News
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