Tuesday December 10 Ag News

Nebraska Farm Bureau President Highlights Importance of Safeguarding Agriculture; Reducing Property Tax Burden; Developing Trade Partnerships

In his annual address at the Nebraska Farm Bureau Annual Meeting and Convention, Nebraska Farm Bureau President Mark McHargue emphasized the crucial importance of farmers and ranchers uniting to safeguard agriculture and the way of life for their families.

“Nebraska ranks among the leading agricultural states in the country. Our focus is on producing healthy, safe, and sustainable food to support a growing global population, all while safeguarding our natural resources. This is not a matter of choosing one over the other; we can achieve both objectives,” said McHargue.

Returning from a recent trade mission to the United Kingdom (UK), McHargue reflected on the parallels of agriculture between the US and UK, observing that while the challenges faced are alike, the approaches to addressing them vary significantly. McHargue stressed the critical need to maintain profitability in Nebraska’s agricultural sector remains as farmers face a challenging economic landscape.  

“Nebraska, which has a land area comparable to that of the UK, produces nearly twice as much agricultural output, totaling $30 billion. However, the future of agriculture in Nebraska depends on balancing environmental stewardship with the need for sustainable, profitable food production. Recent investments in the state—ranging from sustainable beef production and sustainable aviation fuel to dairy growth and more—underscore Nebraska's dedication to enhancing its agricultural sector in the face of ongoing challenges,” said McHargue

Reducing the property tax burden for residents of Nebraska has consistently been a priority for the Nebraska Farm Bureau. McHargue expressed gratitude to members for their efforts in successfully opposing a legislative proposal during the special session that aimed to tax agricultural inputs, while also emphasizing the ongoing necessity to advocate for property tax relief and address the missing year of the refundable income tax credit.

“Most Nebraskans are expecting to be able to claim their property tax relief for 2023 school taxes paid this year when they file their taxes next spring. Unless we fix this that is not going to happen. While we recognize the Legislature's efforts to implement an automatic tax credit, it is essential to address the modifications made during the special session that could lead to an increase in taxes for most property owners by over half a billion dollars. All property owners who paid their 2023 property taxes in compliance with state law should be treated the same,” said McHargue.

McHargue pointed out that the regulatory obstacles encountered by farmers in the UK are leading to decreased efficiency and productivity. He emphasized the efforts of the Nebraska Farm Bureau in advocating against unnecessary regulations that fail to support farming and ranching families, including the EPA’s new strategies causing significant reduction in the use of crop protection products and California’s Proposition 12.

“It’s crucial that we protect Nebraska’s producers and ensure that science-based methods remain at the forefront of agricultural production. California's Proposition 12, which forces Nebraska pork and poultry producers to adopt non-scientific production methods in order to sell into the California market, has created significant challenges for our industry. Farm Bureau is actively working to secure a legislative solution in the next Farm Bill,” said McHargue.

According to McHargue, the trade mission to the UK looked to build on a long trading relationship despite four years of inaction by the Biden administration.

"Bilateral and multilateral trade deals are essential if we're going to catch up with our competitors who never stopped their trade conversations. When you look at the trade imbalance we've seen in agriculture over the past two years—a trend we haven't experienced in many years—it raises real concerns. There are plenty of competitors in the global market looking to displace American agriculture. Regaining these lost markets could take years,” said McHargue. “Should the US implement additional tariffs it could have serious implications, which is why it’s crucial for the future of agriculture that we push for enhanced market access and opportunities for the crops and livestock produced in Nebraska.”



NeCGA Annual Meeting Upcoming, Registration Packets Mailed, At-Large Candidates Sought

The Nebraska Corn Growers Association (NeCGA) will hold its annual meeting on January 22 at the Holthus Convention Center in York. The event will allow delegates to review and update policies, recognize recruiters and elect at-large board members.  

If you would like to be an at-large candidate, please contact chairman of the NeCGA board, Andy Jobman (308) 529-0758 by January 17. Candidates will be allowed to introduce themselves and relay why they want to be elected as an at-large member of the board during the annual meeting.     

Corn and Soy Ambassador Applications Open
The Corn and Soy Ambassador Program is a year-long program for college students who are interested in learning more about the industry and becoming better advocates for agriculture. Each year up to 10 students are selected to participate in the program.

Following the completion of the program, students will be recognized at the annual meetings of the corn and soybean associations. Each will be presented with a $1,000 scholarship to help them with school expenses.

Applications are due December 13, 2025 and can be found at www.necga.org.

PRIME Applications Open
This program is designed for young or new producers, focused on maximizing the long-term viability of operations through research, technology and farm management while building peer relationships.

The program consists of three sessions, lasting approximately two days each, plus attendance at the Nebraska Corn Growers Association Annual Meeting. Participants can expect a total time commitment of 6-8 days away from the farm over 12 months.

The class will consist of 8-12 farmers. Diversity among farm size, geographic location, and background preferred.

A registration fee of $190 is required for enrollment. The fee will be waived for NeCGA 3-year members. Due January 31, 2025. Details at www.necga.org.  



Highly Pathogenic Avian Influenza Detected in a Sioux County Commercial Layer Flock

The Iowa Department of Agriculture and Land Stewardship and the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) have detected a case of Highly Pathogenic Avian Influenza (H5N1 HPAI) in a commercial layer flock in Sioux County, Iowa. This is Iowa’s sixth detection of H5N1 HPAI within poultry in 2024.



ISU hosts Dairy Goat Webinar Series in 2025

Iowa State University Extension and Outreach dairy team will continue its dairy goat webinar series in 2025. All webinars will be from 12 to 1:15 p.m. Central time. Topics will include timely updates on financial management, herd health, animal care and nutrition.

“Dairy goat production is an important industry in Iowa,” said Jenn Bentley, dairy field specialist with ISU Extension and Outreach. “We are very pleased to continue this educational opportunity with a lineup of quality speakers and presenters to provide producers and industry providers with practical take-home information.”

2025 webinar sessions
    Goats by giram85/stock.adobe.com.Jan. 15 – Dairy Goat Profit Analysis: Larry Tranel, dairy field specialist with ISU Extension and Outreach
    Feb. 5 – Care of Neonatal Goats: Rachel Friedrich, DVM and clinical associate professor, College of Veterinary Medicine, Iowa State University
    March 19 – Testing and Evaluation: Utilizing Your Feed Test Results – Laura Keiser, account and marketing manager at Dairyland Laboratories
    April 16 – Buck Management: Carolyn Ihde, small ruminant specialist with University of Wisconsin-Madison Division of Extension and ISU Extension and Outreach
    May – Antimicrobial Stewardship in Dairy Goats: Pat Gorden, DVM and professor of veterinary diagnostic and production animal medicine, College of Veterinary Medicine, Iowa State University
    September – topic to be announced
    Oct. 14 – Animal Welfare for Dairy Goat Producers: Michelle Buckley, DVM and assistant professor of practice, School of Veterinary Medicine, Texas Tech University
    Nov. 18 – Managing Reproduction to Maximize Production: Rosie Busch, DVM and assistant specialist for sheep and goat herd health, School of Veterinary Medicine, University of California Davis and UC Agriculture and Natural Resources Cooperative Extension
    December – topic to be announced

There is no fee to attend the webinar sessions, however registration is required. Registration is only required once to attend any or all webinars.

Register online in advance https://go.iastate.edu/2025DAIRYGOATWEBINARS or contact Jennifer Bentley at 563-382-2949, jbentley@iastate.edu or dairygoatextension@iastate.edu. Registrants will receive a confirmation email containing information about joining the meeting. Information will also be provided about future webinars as topics are announced.

This work is supported by the Sustainable Agricultural Systems project award number 2024-68012-41749 from the U.S. Department of Agriculture’s National Institute of Food and Agriculture.



Congress Returns to Work on Funding, Farm Bills
 
Congressional lawmakers returned to Washington, DC, to begin a two-week work period in which they are expected to approve another short-term funding measure to keep the government operating and another extension of the 2018 Farm Bill. Congress likely will extend the Farm Bill through another continuing resolution (CR), which must be passed by Dec. 20, when current funding for federal programs runs out.  
 
Livestock groups, including the National Pork Producers Council, want a new Farm Bill as soon as possible and supports provisions that would double the funding for USDA’s Market Access Program and Foreign Market Development Program, which help promote U.S. exports; provide resources to protect the nation’s food supply from foreign animal diseases; reauthorize and increase funding for the federal Feral Swine Eradication Program; and, most importantly, fix problems caused by California Proposition 12.
 
The five-year Farm Bill sets farm, conservation, forestry, and nutrition policy and authorizes various agricultural programs, including ones related to foreign animal disease preparation and prevention and export promotion.



Insurance Observations
Matthew Diersen, Ph.D.
Risk & Business Management Specialist
South Dakota State University

Recently a producer asked if Livestock Risk Protection (LRP) premiums adjusted with volatility in the market like options do. The quick response was yes; as futures prices and options premiums change, so do LRP premiums. Like options, LRP has several moving parts. However, expected (or implied) volatility is the only aspect that is not known. A comparison of LRP and options when volatility is both low and high would provide some empirical evidence that both respond to volatility in a similar way. The implied volatility can be backed out of premiums. The CME Group provides LEVL, which is an index of volatility levels for nearby live cattle contract. Recently the volatility in that market has been about 12 percent or a relatively low level for live cattle. Back in late August the volatility was higher, above 16 percent.

How do the premiums compare under different volatility levels? An at-the-money put option on the April Live Cattle contract settled last Friday at $5.05 per cwt. Similar LRP coverage had a full cost of $6.37 per cwt., as LRP is generally more expensive before its subsidy is applied. A put with a $160 strike price settled at $0.35 per cwt. and the $160 LRP coverage was $0.42 per cwt. The full cost is similar at low volatility levels across strike prices for both options and LRP. What about when the volatility was higher? An at-the-money on the December Live Cattle contract settled at $6.10 cwt. on August 20. Similar LRP coverage was also higher at $8.26 per cwt. or more expensive before its subsidy. The driver behind the premium differences can be reduced to differences in the volatility across the different dates.

Since the start of this insurance year, LRP (and Livestock Gross Margin insurance) have not been available for sale on days with Cattle on Feed reports. The NASS publication Price Reactions After USDA Livestock Reports tracks the changes in cash prices before and after Cattle on Feed reports. When tasked, our students have trouble finding consistent biases or differences in magnitude around the reports. We use it as a prelude for seeking patterns in futures prices around reports too. Is there some consistent bias that is, not yet, common knowledge in the market?

The Cattle on Feed report is released on Fridays after trading has closed for futures and options markets. Predicting price responses is complicated by the nature of reports. Sometimes surprises move nearby live or feeder futures. Sometimes surprises move deferred months. Maybe the implied volatility is high on report dates and falls the next trading day. However, the shortest duration for LRP is 13 weeks out and premiums which mutes volatility changes. That aspect should not concern hedgers anyway. If the volatility is irrationally high on report dates, then not buying coverage on those dates would make hedgers better off.