Thursday September 05 Ag News

Central Valley Ag Promotes Sustainable Farming with Truterra

Central Valley Ag (CVA) has successfully participated in the recent round of Truterra programs.  Truterra, the sustainability arm of Land O'Lakes, received the Climate Smart grant funds

from the USDA to support retailers and farmers in adopting climate-smart practices Like cover cropping and no-till.

These programs included the Early-Adopter Program and the USDA Financial Assistance Program. The Early-Adopter Program is for producers who have already made the transition to no till before 2015, while the USDA Financial Assistance Program is focused on helping producers add cover crops and/or transition conventional tillage practices to no-till or strip-till into their operation for 2025.

The available acre caps for both the Early-Adopter and USDA Financial Assistance programs were reached within hours of their launch on August 1st. CVA successfully enrolled over 16,000 acres in the Early-Adopter program and nearly 7,000 acres in the USDA Financial Assistance Program, which will result in approximately $1 million in benefits returning to CVA growers.

“We are very excited about the overwhelming response to these Truterra programs,” said James Banahan, Conservation Agronomist for CVA. “These programs provide valuable financial support to our producers as they implement sustainable farming practices that benefit both their operations and the environment.”

The Early-Adopter Program offered a one-time payment of $25 per acre, while the USDA Financial Assistance Program provided a one-time payment of $100 per acre.

CVA anticipates another round of Truterra programs to be available later this fall or early winter but does not yet have definitive dates. To maximize their chances of participating, producers are encouraged to update their acre boundaries in the Truterra portal.

Central Valley Ag is excited to provide these programs to its producers to continue practicing sustainable farming.



PSC TO PARTICIPATE IN HUSKER HARVEST DAYS

The Nebraska Public Service Commission (PSC) will once again be providing information about the services it provides and the regulatory process within Nebraska to attendees at Husker Harvest Days (HHDays) in Grand Island (Sept. 10-12).

“Through its regulatory responsibilities the Commission plays a role in everything from agriculture and transportation to telecommunications, natural gas and more,” said Commission Chair Dan Watermeier. “Participating in Husker Harvest Days allows us the opportunity to reach those affected by the work we do.”

With the harvest season getting underway Commissioners and staff will be available to answer questions and offer information on Nebraska law when it comes to the selling, or storage of grain.

“In order to do business as a grain dealer in Nebraska you will need to be licensed by the PSC,” said Terri Fritz, Director PSC Grain Department. “Our rules and regulations are in place to protect both the seller and the producer.”

You can visit the PSC booth at Husker Harvest Days in the West Diversified Industry Building (West DI) Exhibition area beginning at 8:00 a.m., each of the three days.

Commissioner Watermeier said, “We would encourage folks to stop by our booth to talk with us about the important role the Commission plays and how it affects Nebraskans.”

Additional Information about the Nebraska Public Service Commission can be found on the PSC website < https://psc.nebraska.gov/ >.



2025 Beef Heifer Replacement Price Forecast
Sep 26, 2024 - 12:00 PM
Shannon Sand, Extension Agricultural Economist, UNL
Matt Stockton, Professor of Agricultural Economics, UNL
and Randy Saner, Livestock Systems Extension Educator, UNL

For the last several years, the University of Nebraska-Lincoln's Extension Beef Economics team has created a short document that forecasts the expected value of replacement heifers for Nebraska producers. These forecasts are intended to be used as a guide in what cow replacement costs might be, given market volatility,  futures expectations, costs, etc. and reflect what might happen over the life of purchased animals.

Forecasts such as this one are intended to help individuals create a reference point for their operation and expectations of potential future events and to arrive at what a reasonable value might be for a heifer/cow purchased or retained for replacement given their situation.

This webinar will cover price forecasts for 2025 and offer advice to producers on how to apply the information.  Register and get more information at this website https://cap.unl.edu/webinars.  



IDALS Announces Availability of Online and In-Person Pesticide Applicator Testing Options

Iowa Secretary of Agriculture Mike Naig announced today that the Iowa Department of Agriculture and Land Stewardship is again offering in-person and online pesticide applicator testing options for commercial and private applicators this fall. The Department encourages commercial and private pesticide applicators to test and apply for 2025 licensing and certification starting October 1 to avoid delays.

"To maintain the productivity of Iowa agriculture, it is crucial that crop protection products are applied safely, precisely, and effectively,” said Secretary Naig. “Iowa’s nearly 33,000 private and commercial pesticide applicators are essential to this effort, and we provide various online and in-person testing options to help meet the licensing and certification requirements."

In-Person Testing
The Department partners with Iowa State University Extension and Outreach to host free in-person private and commercial applicator testing sessions monthly from September through May. The Department’s in-person testing sites are in Black Hawk, Cerro Gordo, Dallas, Dubuque, Fayette, Marshall, Johnson, Sioux, Scott, and Woodbury Counties. Pre-registration is required. Applicators can visit the Department’s website to reserve a spot. In person testing is also available through our college test partners for a fee and locations and contact information are available on the Department’s website. Those interested should contact the testing center directly to register and inquire about costs.

Online Private Pesticide Applicator Testing
Private pesticide applicators who want to obtain or renew their certifications can register to take the private certification exam online. Presently, there is no cost to the online private pesticide applicator testing. To register for the online exam, visit the Department’s website. Links for the private applicator exam and instructions are provided under the Pesticide Applicator Testing Online section.

Online Commercial Pesticide Applicator Testing
Commercial pesticide applicators can register and pay to take the online exam on the Department’s website. The online exams are monitored, recorded and reviewed by a third-party proctoring service. A web camera, high-speed internet connection, and government-issued photo ID card are required for online testing. There is a $25 fee for each commercial pesticide applicator test completed online, payable directly to the third-party online testing service. Commercial pesticide applicators will receive a preliminary pass/fail test result as soon as they complete the online exam, and these preliminary results cannot be used to apply for pesticide applicator certification. The third-party proctoring service will certify the test results and send the final scores to the email address used to register for the exam. Feedback on test results is only available at in-person paper-based testing sites hosted by the Iowa Department of Agriculture and Land Stewardship and will not be provided for online or computer-based exams. For information about the commercial pesticide applicator online exam, visit the Department’s website.

Apply for Pesticide Applicator Licenses Online
Once applicators pass the online or in-person exam, they should use their certification number to register and log-in to the Department’s pesticide self-service portal to submit their application, test results and payment. After the application is approved and the payment is processed by the Department, the licenses and certifications will appear on the individual’s online account within 1-2 business days under “My Licenses” and “My Certifications” respectively.  Help guides for most types of online applications are available on the Department’s website.

For more information, call the Department at 515-281-8591 or email pesticides@iowaagriculture.gov.



Medgene to test its rapid-response vaccine technology in dairy cattle study

Animal health vaccine manufacturer Medgene has responded to notice from the USDA Center for Veterinary Biologics (CVB) on testing of vaccines to address H5N1 incidence in dairy cattle. The CVB Notice, 24-13*, now allows for vaccine studies to be conducted outside of containment facilities. The new notice has potential to accelerate agency licensure of H5N1 vaccines in dairy cows.

“This is great news for us, for the CVB and more importantly, the dairy industry,” stated Chief Operating Officer Tom Halbur. “Our technology is founded on being able to respond to disease challenges, faster. Our protocol satisfies the stated requirements and we’re looking forward to doing our part in supporting both the necessary regulatory policies and the needs of the dairy industry.”

In 2018, the USDA created a regulatory pathway for animal health companies to address critical disease challenges through vaccination. Medgene’s proprietary model of production was developed to take advantage of modern advances in vaccine science. The category of vaccines created under USDA’s regulatory pathway is called “prescription platform.”

The expected result of Medgene’s development work will be conditional or full licensure by the CVB to produce and distribute an H5N1 vaccine that has been proven safe and effective in dairy cattle. Medgene’s prescription platform technology requires that veterinarians are involved in every critical step, including prescribing and supervising the use of the H5N1 vaccine.

Medgene has been successful in prescription platform vaccine production in the swine, cattle, rabbit and deer industries, both in the United States and internationally.



July U.S. Ethanol Exports Ease, DDGS Shipments Hit 3-Year High
RFA Senior Analyst Ann Lewis
    
July U.S. ethanol exports slipped 7% to a still-robust 136.0 million gallons (mg) amid mixed markets. Canada continued to be the top destination for the 40th consecutive month, accounting for an impressive 46% of all exports. Of the 62.0 mg landing in Canada, 95% was denatured fuel, marking the second-largest monthly shipment of denatured ethanol to the country. The bulk of the remaining ethanol exports were spread across five key markets. The United Kingdom imported a substantial 25.1 mg, despite a 2% decline. Exports to Colombia increased by 16%, reaching a five-month high of 14.2 mg. In contrast, India reduced its imports by 23%, down to 11.4 mg. Exports to South Korea surged 11-fold to 9.7 mg, while the European Union halved its imports, dropping to an eight-month low of 8.3 mg. Additionally, Mexico, Peru, Singapore, and the Philippines experienced significant declines, and Brazil remained absent from the market. Year-to-date U.S. ethanol exports have reached a record high of 1.10 billion gallons, running 38% ahead of last year's pace.

The U.S. did not log any meaningful imports of foreign ethanol in July (Canada shipped 9,018 gallons of undenatured fuel ethanol). Year-to-date imports stand at 1.4 mg.

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, surged by 16% to 1.09 million metric tons (mt). For the seventh consecutive month, Mexico led the way as the top market, boosting its imports by 23% to a five-month high of 247,903 mt. Most other major markets also saw significant gains. South Korea increased by 6% to 123,725 mt, while the European Union surged by 56% to 84,446 mt, driven by a 161% rise in sales to Ireland. Turkey’s imports jumped 65% to 69,253 mt, and Vietnam edged up by 1% to 67,432 mt. Canada grew by 28% to 58,893 mt, and Japan doubled its imports to 55,412 mt. Thailand saw a 4% rise to 41,201 mt, reaching a 16-month high. Only Indonesia (-27% to 73,769 mt) and China (-1% to 52,123 mt) reduced their imports, yet both remained among the top ten global markets in July. The remaining 20% of U.S. DDGS exports were distributed across 28 other countries. Year-to-date DDGS exports have reached 6.97 million mt, up 15% compared to the same period last year.



Beef-on-Dairy is a Growing Trend, But Its Impacts on Beef Production are Small
James Mitchell, Extension Livestock Economist, University of Arkansas
Kenny Burdine, Extension Professor, Livestock Specialist, University of Kentucky

Growth in beef-on-dairy has raised several questions, including the impacts of the system on U.S. beef production. Recent estimates picked up by the farm press suggest that beef-on-dairy represented 7% of 2022 cattle slaughter or 2.6 million head. The same source predicts that beef-on-dairy could account for 15% of cattle slaughter by 2026. There is nothing wrong with these numbers, but some context should be added regarding how this would impact US beef production levels.

It is important to recognize that beef-on-dairy does not immediately change the number of calves born to dairy cows annually. Therefore, it does not necessarily mean more cattle entering the beef production system. The first figure in this article shows annual fed cattle slaughter. The figure also shows that fed dairy as a percent of total fed cattle slaughter has remained relatively constant from 2014 to 2023, ranging from 16% to 19%. In 2023, fed dairy cattle slaughter was estimated at 4.67 million head or 19% of total fed cattle slaughter. The increase in fed dairy relative to total fed slaughter from 2019 to 2023 is a function of the cyclical decline in cattle inventories – beef cattle numbers decreased while dairy cattle numbers increased. As growth in beef-on-dairy continues, we will observe a decrease in traditional fed dairy cattle slaughter and an increase in beef-on-dairy cattle slaughter. The key point being that this is a tradeoff, not a net gain in dairy slaughter.

How widely adopted is beef-on-dairy and how much growth do we expect going forward? Extrapolating data from Lauber et al. (2023) implies that beef-on-dairy grew from 18% or 738 thousand head in 2019 to 26% or 1.12 million head in 2021. More recently, the National Association of Animal Breeders reported sales of beef semen to the dairy industry totaling 7.9 million or 31% of total semen sales to dairy, including sexed, conventional, and beef semen sales (NAAB, 2023). Since there is likely no significant cost difference from using beef semen in the dairy herd, it is not unrealistic to expect that beef-on-dairy will become widely adopted in the dairy industry over the next few years.

The table in this article shows a range of beef-on-dairy adoption rates (0% to 100%) and the hypothetical impacts on 2023 beef production. In these scenarios, beef-on-dairy adoption refers to the share of non-replacement-intended fed dairy cattle slaughter that is from beef-on-dairy crosses. As beef-on-dairy transitions from 0% to 100% adoption, a larger share of fed dairy slaughter will come from the latter. If the adoption rate were 100%, this would equate to an estimated 4.67 million head of non-replacement dairy calves being beef-on-dairy cattle or about 19% of 2023 fed cattle slaughter. But the supply of fed dairy cattle does necessarily increase; beef-on-dairy just represents an increasing proportion of that supply.

While the total number of cattle fed annually may not change, increasing adoption of beef-on-dairy has the potential to impact the type and quality on a portion of those cattle. In order to specifically estimate the impact on beef production, assumptions must be made about potential changes in dressed weights when a share of traditional fed dairy cattle are replaced with beef-on-dairy fed cattle. The analysis begins with the assumption that traditional fed dairy cattle averages 800 pound dressed weights (1400 pounds live weight) with a dressing percentage of 57%. Using that as a starting point, and assuming zero beef-on-dairy adoption, beef production from fed dairy cattle would have totaled around 3.73 billion pounds in 2023 (800 pounds times 4.67 million head). This would have represented 13.8% of total 2023 beef production on a carcass weight equivalent.

It would seem reasonable to assume that use of beef semen on dairy would potentially bring live weights down and pull dressing percentages upward. If the increase in dressing percentage offset the decrease in liveweights such that carcass weights increased by 3%, this would be roughly a 24-pound increase for beef-on-dairy fed cattle. Using this 24-pound increase, had beef-on-dairy adoption had been 100% in 2023, production from beef-on-dairy would have totaled around 3.84 billion pounds (14.3% of total U.S. beef production on a carcass weight equivalent). That additional 112 million pounds would represent an increase in annual beef production of 0.42%. Put simply, moving the assumption from 0% to 100% adoption would have increased 2023 beef production by less than half a percent. Importantly, recognize that some of the impact on beef production has already been internalized because beef-on-dairy adoption has already reached 30-50%.

There are some additional points that should be made about the estimates discussed above and shown in the table. The first involves the percent of beef-on-dairy semen that is potentially sexed. Anecdotally, we got mixed answers, with some people telling us 5% and others telling us nearly 100% of beef-on-dairy semen sales are sexed. If a larger share of beef-on-dairy calves are steers, the impact on beef production would be larger as steers will have higher dressed weights. But even if we double the impact on carcass weights to 50 pounds, the change in total beef production is still less than 1%.

Another question involves how beef-on-dairy potentially changes the relative value of a dairy heifer. Are there situations where a dairy heifer is worth more as a beef animal than a dairy replacement? If so, that could increase the total number of beef-on-dairy cattle. That also raises questions about second-order effects. Does the profitability of beef-on-dairy mean more dairies? Milk production will remain the focus of dairy operations, but increased calf values have the potential to impact profitability. If this encourages some expansion of the dairy herd, that would lead to further impact on beef production levels.

Finally, beef-on-dairy will impact beef quality grades and change the volume of eligible products for branded beef programs. It will change how we market approximately 15% of U.S. beef production. That's an important consideration, but we do not think it will erode beef quality premiums. Other considerations include the downward trend in veal slaughter which coincides with the increase in beef-on-dairy.

Beef-on-dairy is an important change for both the beef and dairy industries. During the liquidation phase of the cattle cycle, beef-on-dairy will reflect a larger share of total fed cattle slaughter. This is especially true as more dairies adopt beef-on-dairy crosses to improve the value of their calves. Still, the impact on total beef production is likely to be relatively small and will depend on how beef-on-dairy changes the structure of the dairy industry. It is an important development that we should continue to monitor.



Landmark Agreement Secures U.S. Exporters' Rights to Use Common Names in Chilean Market

The Consortium for Common Food Names (CCFN), National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) commended the passage into law of commitments by the Chilean National Congress today that safeguards the rights of U.S. cheese and meat exporters to use certain common names – such as “parmesan” and “prosciutto” – to market and sell their products in the Chilean market.

The agreement came together following an exchange of letters between U.S. Trade Representative Katherine Tai and Chile’s Undersecretary of International Economic Relations Claudia Sanhueza on June 21, which confirmed a mutual understanding and agreement that U.S. exporters will be able to continue to market their products in Chile using a number of common cheese and meat terms.

Certain provisions under the EU-Chile trade agreement signed in December 2023 enabled the unfair treatment of U.S. meat and dairy products by abusing geographical indication protections. In response, CCFN, NMPF and USDEC worked closely with U.S. and Chilean government officials to address the U.S.-Chile Free Trade Agreement’s (FTA) threats to U.S. cheese and meat products.

Included in the agreement is a mutual understanding regarding “prior users” of certain cheese and meat terms in the market. For a limited number of products that the EU allowed to be grandfathered and that American exporters had exported to Chile prior to the updated FTA, all U.S. producers of those products will have the right to continue to use those terms in Chile. In addition, an extensive list of common names will also be protected for use in Chile for all U.S. producers. The exchange of letters is now integrated into the FTA between the two countries and is subject to its provisions, including the FTA’s enforcement measures.

“CCFN applauds the Administration for their initiative to negotiate the protection of parmesan and a number of other key products,” said Jaime Castaneda, executive director for CCFN. “We greatly appreciate USTR and USDA’s work with the Chilean government and urge the Administration to continue its efforts to push back against the European Union’s strategic monopolization of common names. To that end, it’s vital that the U.S. establish a firm policy of proactively seeking protections for common name products with key trading partners all around the world.”

“Chile is a critical market and partner for U.S. dairy in Latin America,” said Krysta Harden, president and CEO of USDEC. “We greatly appreciate USTR and USDA for their hard work to strengthen this relationship, which will directly help U.S. producers grow their businesses in Chile. We look forward to continuing to work together to create new avenues for U.S. dairy exports and to avoid similar challenges from cropping up in other international markets.”

“This agreement is a milestone for U.S. dairy producers,” said Gregg Doud, president and CEO of NMPF. “It ensures that many of our products will maintain fair access to the Chilean market, supporting the growth and success of American dairy farmers on a global scale. Now, we need to build on that momentum by securing agreements with other trading partners to protect export opportunities for even more U.S. cheeses.”

The agreement will enter into force 90 days from the National Congress’ Sept. 3 approval.