Tuesday December 03 Ag News

 Nebraska Farmers Union 111th Annual State Convention Agenda Announced
December 6-7, 2024
Quality Inn and River’s Edge Convention Center, Columbus, NE

"Value Added Agriculture: Helping Ourselves to a Better Future” is the theme for the 111th annual Nebraska Farmers Union (NeFU) state convention.  NeFU President John Hansen said, “Our convention program will focus on taking advantage of value-added opportunities to bring new tax base, tax revenues, good paying jobs, economic opportunities, and farm income to rural Nebraska. For 111 years, our organization has used its “can do” attitude and worked together to help ourselves. NeFU has helped organize 445 rural cooperatives, supported the creation of our state’s unique public power system, built our modern biofuels industry, and pioneer the harvesting of our valuable wind and solar resources.  Those efforts have brought many billions of dollars of annual value that serves family farm agriculture and rural Nebraska year after year. We build today for a better tomorrow.”

This year’s convention brings 15 state and national speakers and leaders that will discuss the status of public power, biofuels opportunities, water quality, renewable energy development, state legislative issues, national farm and rural issues, soil health, conservation cost share programs, farm and disaster programs, celebrate Nebraska Rural Response Hotline’s 40 years of life changing service to rural families, and Farmers Union’s history of harnessing the power of organization to build a better future.

NeFU will also elect three NeFU Board of Directors to 3-year terms, select two members from the membership to the NeFU Foundation Board, and elect 3 delegates and 3 alternates to the NFU Convention next March in Oklahoma City, set NeFU policy for the next year, and present the President’s Award for outstanding service to family farm agriculture to NeFU member Janece Mollhoff who is retiring from the OPPD Board of Directors.

All the convention information is found here: https://nebraskafarmersunion.org/.  



Gov. Pillen Previews 2025 Legislative Priorities

Governor Jim Pillen is previewing some of his priorities for the 2025 legislative session. These initiatives, and others, align with his administration’s ongoing commitment to kids, taxes, agriculture and values.   

“This is by no means an all-encompassing list, but these items are certainly top of mind as we reflect on our past achievements and acknowledge there is still much to be accomplished,” said Gov. Pillen. “We must continue to build on those foundations, addressing issues that are of greatest concern to Nebraskans.”  

KIDS:   Gov. Pillen is advocating for guidelines around athletic activities, aimed at protecting both kids and women.  Legislation brought by Senator Kathleen Kauth in 2023 proposed guidelines for opposite-sex participation in sports activities and the use of restroom and locker room facilities. It was carried over into 2024 but failed to advance by only two votes.

Eight months into his administration, Gov. Pillen became the second governor to issue an executive order establishing a Women’s Bill of Rights, which in part, defined terms like “male” and “female” as guidance to agencies, boards and commissions. That order remains in effect, only to expire upon passage of a state law that provides the necessary clarification to these issues.

TAXES:  Legislation passed during the summer special session produced $185 million in new tax relief, and established caps on local tax collections. Recently, Gov. Pillen issued the 2024 School Property Tax Collection Report, which makes the case for reworking the Tax Equity and Equalization Opportunities Support Act (TEEOSA) formula, so that it provides schools a more stable and consistent method of budgeting; thereby, reducing the amount of increase that schools feel they need to offset reductions in state aid.

“We cannot continue down the path of Nebraskan’s paying among the highest property taxes in the nation,” said Gov. Pillen. “It makes us less competitive with other states and less attractive to people who may be looking to move here. This is a situation that we will keep fighting to address.”

AGRICULTURE:   New legislation will be introduced aimed at banning the sale of lab-grown meat. This follows Gov. Pillen’s executive order prohibiting the state from purchasing products defined as lab-grown meat and prohibiting other parties from contracting with the state, which might also procure lab-grown meat.

At a news conference in August, Gov. Pillen pointed to the uncertainty of health impacts arising from consumption of lab-grown meat and that other states and countries have implemented strict labeling requirements and outright bans to best protect consumers. The Nebraska Department of Agriculture (NDA) has drafted rules and regulations to ensure proper labeling and make certain that lab meat is not sold on store shelves next to natural meat products.

At the media event, Gov. Pillen reinforced his commitment to Nebraska farmers and ranchers, who produce products that drive Nebraska’s economy and are highly sought overseas.  “We feed the world and we save the planet more effectively and more efficiently than anybody else and I will defend those practices with my last breath.”

VALUES:  Returning the state’s allocation of electoral votes to winner-take-all is another top priority when the 109th Legislature convenes. Since 1993, Nebraska, has apportioned its electoral college votes in a way that promotes gerrymandering and prioritizes a small minority of voters over a majority of the public. For example, in the 2024 presidential election, 8% of Nebraskans allocated 20% of the electoral college votes. Gov. Pillen seeks to change this unjust system and have Nebraska rejoin the 48 other states that allocate electoral college votes through winner-take-all.



Avoid Year-End Operating Loan Pitfalls
Source: Jessica Groskopf - Nebraska Extension Educator, Agricultural Economist

As the year draws to a close, many producers rely on operating loans, or lines of credit, to finance essential expenses when cash flow is tight. These loans function like credit cards but usually come with lower interest rates. An operating loan is a short-term financing tool — often lasting less than a year — designed to help manage business cash flow. Borrowers are usually granted a pre-set limit they can draw from and repay multiple times throughout the year, primarily for purchasing inputs rather than long-term assets like land or equipment.

However, as the year ends, it's crucial to navigate the potential pitfalls associated with these loans. Here are some key considerations to keep in mind:

Understand Your Loan Limit
As many farmers and ranchers take advantage of pre-paying expenses to minimize tax liability, it’s essential to know your operating loan limit. Ensure that your planned purchases align with this limit to avoid unexpected complications.

Know Your Annual Percentage Rate (APR)
Pre-paying expenses can lead to carrying costs for several months. Familiarize yourself with the APR (annual percentage rate, interest expense) for each loan. It is often prudent to select the loan with the lowest APR.

Avoid Too Many Lines of Credit
In addition to banks, many suppliers may offer lines of credit to facilitate input purchases. Managing multiple credit sources can become overwhelming. Develop a system to track each line of credit that you have. Stay informed about the terms and APR of these offers, as they may be less advantageous than those provided by your bank. Additionally, ensure that any outstanding balances are accurately reflected as liabilities on your balance sheet.

Use the Right Loan for Each Purchase
Operating loans should be reserved for input purchases. Avoid using these loans for personal expenses, purchasing intermediate and long-term assets such as equipment or land, or using them to make payments on other loans. Misusing operating loans can lead to financial strain down the line.

Don’t Use Loans as a Substitute for Income
Utilize operating loans for expenses that are necessary and that can be covered by income generated throughout the regular production season. It’s essential to consider all outstanding debts and have a solid repayment plan in place to maintain financial stability.

By staying informed and cautious, producers can effectively navigate the challenges of year-end financing and set themselves up for success in the upcoming year.




Five Students Take State in Conservation Poster Contest

Trees and wildlife were artfully crafted by young Nebraskans throughout the year turning blank paper into award-winning posters.

Nebraska’s Natural Resources Districts (NRDs) recognize students from kindergarten to 12th grade, who competed in the annual “May the Forest Be with You, Always” Conservation Poster Contest. Students winning in the state competition include:
    K-1: Charlotte Rardon, Norfolk, Nebraska (Lower Elkhorn NRD)
    2-3: Elise Ekberg, Norfolk, Nebraska (Lower Elkhorn NRD)
    4-6: Connor Pojar, Scribner, Nebraska (Lower Elkhorn NRD)
    7-9: Kiersten Hans, Wynot, Nebraska (Lewis & Clark NRD)
    10-12: Rylyn Moody, Purdum, Nebraska (Upper Loup NRD)

Each NRD selects a winner from their district contest to compete in the state competition. The state winners take home a $25 prize and will go on to compete in the National Association of Conservation Districts (NACD) poster contest for a chance to win $200. National winners are selected at the NACD annual conference in February.

Typically, NRDs notify area teachers about the contest and allow them to introduce it in the classroom. Individual students can participate outside of the classroom by submitting their artwork to their local Natural Resources District. The 2025 poster theme will be “Home is Where the Habitat Is.”



Nebraska Corn Board Seeks Candidates for Vacancies

Notice is hereby given that the terms for three members of the Nebraska Corn Development, Utilization and Marketing Board (Nebraska Corn Board) will expire June 30, 2025, and Nebraska’s corn checkoff program is seeking candidates to petition for those districts. The open positions represent Districts 1, 4 and 5.
    District 1 – Includes the counties of Richardson, Pawnee, Johnson, Nemaha, Otoe, Cass, Sarpy, Douglas, Gage, Jefferson, Saline, Seward, Butler, Saunders and Lancaster. (Note: Dan Nerud, the current District 1 director, has indicated he will pursue re-appointment.)
    District 4 – Includes the counties of Knox, Cedar, Dixon, Dakota, Thurston, Burt, Washington, Dodge, Colfax, Stanton, Cuming, Wayne, Madison and Pierce. (Note: Debbie Borg, the current District 4 director, has indicated she will not pursue re-appointment.)
    District 5 – Includes the counties of Howard, Sherman, Hall, Buffalo, and Dawson. (Note: Adam Grabenstein, the current District 5 director, has indicated that he will pursue re-election.)

Appointments to the board for these three districts are made by the Governor of Nebraska. Any candidate seeking appointment may place his or her name on the candidacy list by filing a petition with the Nebraska Corn Board. Qualified candidates include those individuals who are citizens of Nebraska, reside in an open district, are at least 21 years old, have been actively engaged in growing corn in Nebraska for a period of five years and derive a substantial portion of their income from growing corn. Board members who currently represent these districts are also eligible to re-petition.

Petitions may be obtained by writing the Nebraska Corn Board (245 Fallbrook Blvd. Suite 204, Lincoln, NE 68521), calling 402-471-2676 or emailing ncb.info@nebraska.gov. A candidacy petition must carry the signatures of at least 50 corn producers from that district. All petitions must be received by the Nebraska Corn Board no later than 5:00 p.m. central time on Friday, May 16, 2025. Faxed copies do not qualify.



Sign-Up for Crop Insurance Discount Program Opens

Iowa Secretary of Agriculture Mike Naig announced today that the sign-up for the state’s Crop Insurance Discount Program is now open and available. Farmers who planted cover crops this fall can apply for a $5 per acre discount on their spring crop insurance premiums.

The sign-up period opened on Monday, December 2, 2024, and will close on Friday, January 24, 2025. Farmers and landowners can enroll by visiting Apply.CleanWaterIowa.org or by contacting their crop insurance agent.

“As cover crop usage in Iowa continues to grow in popularity, the Crop Insurance Discount Program remains effective at encouraging the use of this proven water quality practice,” said Secretary Naig. “We encourage farmers that planted cover crops this fall to visit with their crop insurance agents and get signed up because it can save them money on spring crop insurance premiums. We all benefit when cover crops are used because the practice improves water quality, offers enhanced soil health and adds forage for livestock, among many other agronomic advantages.”

Now in its eighth year, this innovative program is jointly administered by the Iowa Department of Agriculture and Land Stewardship and the United States Department of Agriculture (USDA) Risk Management Agency (RMA). To date, nearly 2,000 Iowa farmers have enrolled more than 1.2 million acres of cover crops in the program. Iowa’s program has served as a model and has been replicated by USDA as well as the states of Wisconsin, Illinois and Indiana.

To qualify for the program, the cover crop acres cannot be enrolled in other state or USDA Natural Resources Conservation Service (NRCS) cost share programs. Some insurance policies, such as Whole-Farm Revenue Protection or those covered through written agreements, may be excluded. Participants must follow all existing farming practices required by their respective policies and work with their insurance agencies to maintain eligibility.

To learn more and to get signed up, visit CleanWaterIowa.org or contact your crop insurance agent.  



Naig Announces Availability of Choose Iowa Value-Added Grants

Iowa Secretary of Agriculture Mike Naig announced that the Iowa Department of Agriculture and Land Stewardship is once again offering Choose Iowa Value-Added Grants to expand the availability of Iowa grown, Iowa raised, and Iowa made foods, beverages, and other agricultural products. These Choose Iowa grants match up to $25,000 per project to help farmers, businesses, and non-profits increase or diversify their agricultural product offerings, which provide more local food choices to consumers.

“Choose Iowa continues to build momentum because consumers are driving strong demand for local Iowa products. Choose Iowa grants help farmers and small businesses add value, tap into new markets, and enhance consumer choice, all while generating economic activity within our communities,” said Secretary Naig. “We welcome applications for creative and innovative projects that can benefit from this Choose Iowa grant to expand the availability of Iowa grown, raised, and made food, beverages, and ag products.”

Applicants can use Choose Iowa grant funding to add new processing, packaging or sales techniques that add value to the crops, livestock, and other products that they produce. For example, a farmer may invest in an on-farm store or cold storage to sell meat, eggs or produce direct to consumers, or a produce grower may upgrade their commercial kitchen to process larger quantities of seasonal produce at the peak of freshness. Grant funding can also be used for employee training and continuing education programs. Meat processing and dairy processing projects are not eligible for Choose Iowa grants as separate dedicated grant funding programs are available for both. More information about the Choose Iowa Butchery Innovation Grant and Choose Iowa Dairy Innovation Grant opportunities are available on the Choose Iowa website.

Choose Iowa Value-Added Grants are highly competitive. In the past two years, the program received applications totaling nearly $2.4 million in requests. Twenty-eight recipients were awarded in 2023 and 26 recipients were awarded in 2024 for projects ranging from increasing cold storage, to expanding processing proficiency and distribution capabilities, to improving production capacity and efficiency.

Individuals, businesses, and non-profit organizations that are currently living or operating in Iowa may apply. Preference will be given to small to medium-sized businesses. Details about the grant program, including financial matching requirements, the application, and eligibility criteria, are available on the Choose Iowa website.

Applications should be submitted through the online portal on the Choose Iowa website and are due by 12:00 p.m. CST on January 31, 2025. Grant recipients will be announced in April 2025. Questions about the Choose Iowa value-added grants can be directed to chooseiowagrant@iowaagriculture.gov.



U.S. Agricultural Exports in Fiscal Year 2025 Forecast at $170.0 Billion; Imports at $215.5 Billion
USDA Economic Research Service

U.S. agricultural exports in fiscal year (FY) 2025 are forecast at $170.0 billion, up $500 million from the August forecast. This projection is primarily driven by increases in livestock and dairy exports. Beef exports are projected $400 million higher to $8.8 billion as higher volumes offset lower unit values. Dairy exports are raised $300 million to $8.4 billion based on increased U.S. price competitiveness for a number of products. Overall livestock, poultry, and dairy exports are forecast to increase by $700 million to $39.3 billion. Grain and feed exports are forecast at $36.5 billion, up $200 million from the August forecast, as higher exports of corn and sorghum more than offset moderately lower wheat and feed and fodder exports. Horticultural exports are projected at $41.7 billion, up $200 million from August due to increases in fresh and processed fruit and vegetable exports. Oilseed and product exports are projected at $33.5 billion, down $500 million due to lower soybean and peanut volumes. Cotton exports are forecast down $200 million to $4.3 billion due to lower volumes. The forecast for ethanol exports is lowered by $100 illion to $4.2 billion, as falling export unit values offset slightly higher volumes.

Exports to Mexico, the top U.S. agricultural market, are forecast $700 million higher from the August projection to $29.9 billion, driven by continued robust demand for a range of products. The export forecast for Canada is $300 million higher to a record $29.2 billion, supported by a strong economic outlook. Agricultural exports to China are forecast at $23.3 billion, down $700 million from the August projection. U.S. agricultural imports in FY 2025 are forecast at $215.5 billion, up $3.5 billion from the August projection, led by increases in horticultural as well as sugar and tropical product imports.



Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 510 million bushels in October 2024. Total corn consumption was up 3 percent from September 2024 but down less than 1 percent from October 2023. October 2024 usage included 92.3 percent for alcohol and 7.7 percent for other purposes. Corn consumed for beverage alcohol totaled 3.49 million bushels, down 1 percent from September 2024 and down 46 percent from October 2023. Corn for fuel alcohol, at 460 million bushels, was up 3 percent from September 2024 but down less than 1 percent from October 2023. Corn consumed in October 2024 for dry milling fuel production and wet milling fuel production was 92.4 percent and 7.6 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.87 million tons during October 2024, up 4 percent from September 2024 and up 1 percent from October 2023. Distillers wet grains (DWG) 65 percent or more moisture was 1.31 million tons in October 2024, up 14 percent from September 2024 but down 5 percent from October 2023.

Wet mill corn gluten feed production was 251,577 tons during October 2024, down 8 percent from September 2024 and down 5 percent from October 2023. Wet corn gluten feed 40 to 60 percent moisture was 205,988 tons in October 2024, up 18 percent from September 2024 but down 3 percent from October 2023.

Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 6.47 million tons (216 million bushels) in October 2024, compared with 5.60 million tons (187 million bushels) in September 2024 and 6.04 million tons (201 million bushels) in October 2023. Crude oil produced was 2.57 billion pounds, up 16 percent from September 2024 and up 8 percent from October 2023. Soybean once refined oil production at 1.91 billion pounds during October 2024 increased 9 percent from September 2024 and increased 4 percent from October 2023.



Dairy Market Report - NOVEMBER 2024
NMPF

The monthly margin under the Dairy Margin Coverage (DMC) program in September set its second straight record high at $15.57/cwt, the result of relatively high milk prices and falling feed costs.

Meanwhile, U.S. dairy export volumes are recovering from a mid-year slump, achieving in September the second highest percentage of domestic milk solids production for that month.

Monthly milk production grew slightly in August and September, ending a consecutive 13-month stretch during which it remained below year-earlier levels, but increasing milk production remains difficult due to scarce dairy replacement heifers and high costs to build and equp facilities to accommodate bigger herds. Brisk increases in the component composition of producer milk continue to provide a relatively low cost means of increasing supplies to meet available demand that doesn’t require additional animals or facilities.

Read the full report here: https://www.nmpf.org/dairy-exports-rebound-and-production-edges-up-in-september/.



Climbing Calf Prices
David Anderson, Ph.D.
Extension Specialist – Livestock and Food Product Marketing
Texas A&M University

Calf and feeder cattle prices have jumped higher over the last few weeks. Several factors are working together to boost prices including rain, fewer calves for sale, and maybe even the impact of import restrictions on Mexican cattle due to screwworm regulations.

Lighter weight, 400-500 pound, calf prices have jumped about $30 per cwt in the Southern Plains over the last month. Heavier 500-600 pound steers are up around $20 per cwt and 700-800 pound feeders are up about $80 per cwt over the same period in the Southern Plains. Seasonal lows in the calf market are in the rearview mirror for 2024. Calf prices do tend to increase, seasonally, in the late Fall.

Recent rains have boosted stocker prices. The drought monitor map indicates some significant improvement across wheat pasture country. Maybe better late than never. The rains have boosted prospects for late pasture grazing and likely boosted supplies of pond and tank water that had run short.

It appears that fewer calves are hitting markets cutting into available supplies. Over the last month, fewer cattle have been reported in USDA’s weekly market receipts data, the daily CME feeder cattle index, and in local markets around the country. This follows some larger runs earlier in the season. So, tighter supplies are hitting some rain boosted stocker demand.

We might wonder if import restrictions are impacting calf prices. It’s a little early to say because restrictions were only imposed last week and we don’t have the weekly import data for the holiday shortened week yet. Restrictions might have impacted the feeder cattle futures market but it’s likely too early to quantify in local auction markets. Price impacts will depend on how long import delays last.

On balance, rain and supplies are some fundamental factors at work in boosting calf prices. Those positive factors are offsetting the impact of some increasing corn prices which work to reduce feeder prices. Even tighter supplies will continue to boost calf prices in the new year.



USDA Announces December 2024 Lending Rates  for Agricultural Producers

The U.S. Department of Agriculture (USDA) announced loan interest rates for December 2024, which are effective Dec. 2, 2024. USDA Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.           

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

Operating, Ownership and Emergency Loans        FSA offers farm ownership, operating and emergency loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation.   

Interest rates for Operating and Ownership loans for December 2024 are as follows:    
    Farm Operating Loans (Direct): 4.750%  
    Farm Ownership Loans (Direct): 5.250%  
    Farm Ownership Loans (Direct, Joint Financing): 3.250%  
    Farm Ownership Loans (Down Payment): 1.500%
    Emergency Loan (Amount of Actual Loss): 3.750%    

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.  To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.       

Commodity and Storage Facility Loans       Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low.  Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.   
    Commodity Loans(less than one year disbursed):5.250%  
    Farm Storage Facility Loans:  
    Three-year loan terms: 4.125%
    Five-year loan terms: 4.125%
    Seven-year loan terms: 4.250%
    Ten-year loan terms: 4.375%
    Twelve-year loan terms: 4.375%
    Sugar Storage Facility Loans(15 years): 4.500%     



Murphy Family to Return to Independent Pork Production Through Agreement with Smithfield

Murphy Family Ventures and Smithfield today announced a definitive agreement that will re-establish the Murphy family farming business, which was founded by Wendell Murphy in 1962 and largely credited with creating the modern swine industry, as one of the largest independent pork producers in the United States.   

Murphy Family Ventures and Smithfield have signed an agreement that will establish a Murphy-owned farming business with capacity to produce approximately 3.2 million hogs annually for Smithfield’s fresh pork operations. The company, which will be majority owned by the Murphy family, will assume ownership of 150,000 sows – and the market hogs they produce – currently owned by Smithfield. Smithfield will provide production services, including the supply of feed and transportation services.

“The Murphy family has enjoyed the past 24 years as a contract growing partner with Smithfield and we look forward to restoring our heritage as an independent producer,” said Dell Murphy, president and CEO of Murphy Family Ventures. “This agreement represents a generational transfer of independently owned swine production capabilities in North Carolina.”

“Smithfield has evolved over the last 10 years into a more streamlined consumer packaged goods company focused on value-added fresh pork and packaged meats delivered from a portfolio of popular brands recognized for quality and taste,” said Shane Smith, president and CEO of Smithfield Foods. “With this agreement, we continue this transformation while ensuring a supply of hogs from a family farming operation with a long history in and a strong commitment to best practices in American pork production.”

Murphy Family Ventures and Smithfield expect to close the transaction by the end of the year.