Wednesday, November 19, 2025

Wednesday November 19 Ag News - NC YCC Participants - More on Hansen-Mueller Chap 11 Filings - Grazing Corn Residue Impacts Soil - More on updated WOTUS Rule - and more!

When will imports of Mexican cattle resume?
Alfredo DiCostanzo, Extension Educator
University of Nebraska-Lincoln


Last week a feedlot consultant asked me when I thought imports of Mexican cattle would resume. Before I go any further, I must declare that I know as much as most of you about the border closure and efforts by Mexico and the US to control the spread of the New World screwworm (NWS) fly.

Yet, I composed a response to this individual that might be worth sharing; if nothing else for pure reflection. It is based on observation and limited information, some of it gathered while I was in Mexico a few weeks ago. So, one might file this column under the "conjecture” heading.

On the one side, the Trump administration has demonstrated fair measures that protect American interests (nothing wrong with that!) on various fronts, particularly in dealing with trade, immigration and the NWS issue.

The first case of NWS in Mexico occurred in November 2024. This led USDA Secretary Brooke Rollins to suspend the imports of live cattle, bison, and horses through the southern border with Mexico (note the wordsmithing between suspension and closure). Early in 2025, a phase process was initiated between Mexico and the US to continue imports of live cattle, bison, and horses. Yet, actions by the Mexican government regarding the US efforts to deal with this issue on Mexican soil demonstrated hesitation, delay, or downright deception.

Currently, the import suspension continues month-to-month. This situation has led to continued speculation and, sometimes, false reports that imports would resume.

In the meantime, the two cases reported by Mexico close to the US border resulted from cattle that were derived from southern Mexico and were already carrying the maggot. According to local sources, the protocols in place worked so that the maggots did not reach the fly stage. The fact that no further cases resulted from these supports that assertion.

Interestingly, USDA Secretary Brooke Rollins recently returned from a trade mission in Mexico. The following is an extract from USDA’s news release on the topic of NWS: “we had a productive and positive conversation about how we will continue to work closely together to eradicate the NWS which is negatively impacting both our economies, including conducting a comprehensive joint review of our NWS response...”

Meanwhile in the US, because of the cattle import suspension, over 1 million head of feeder cattle usually sourced from Mexico have not been imported. Although a proportion of these cattle end up in many states, most of them are fed in the Texas panhandle.

This is reflected by the drop in cattle on feed inventory. During spring and summer of 2024, Texas cattle on feed inventory ranged from 2.74 to 2.84 million head with highs in April and June and lows in August and September. This year, the high was reported in April (2.67 million head) with a steady decline in cattle on feed that reached 2.5 million head in September.

The suspension of imports of live cattle from Mexico could not come at a worst time for a cattle feeding state such as Texas. Supplies of US-sourced feeder cattle are at an all time low and, if herd expansion proceeds as expected, there will be fewer cattle going into feedlots.

This leads one to wonder: how long can Texas feedlots operate with low inventories or by purchasing American sourced cattle at high prices? (In a state where feeding cost of gain is high.)

Contrary to one might suspect, Mexico cattle business is not suffering from an excess in beef cattle supply. One reason for this is that they experienced drought during the same years as we experienced it. This led to a reduction in their cow herd and feeder calf supply. Also, like their American counterpart, the Mexican consumer rediscovered beef. This led to greater interest in consuming beef. Mexican retail beef prices increased over 20% since 2024.

On one end, this appetite for beef by Mexican consumers helped consume beef from cattle otherwise destined for export to the US. Consuming Mexican beef by Mexican consumers also reduced to need to import feeder cattle. (Incidentally, the border between Mexico and Central America is closed to imports of live cattle.)

What next?

Last week, Secretary Rollins announced that a fly dispersal facility will begin operations in Tampico, Mexico covering northeastern states in Mexico. Although no specific time was given for when this facility will begin operations. Another facility being renovated in southern Mexico (Metapa) will begin producing and releasing sterile flies in the summer of 2026. This is in addition to the plan being built on US soil (in Edinburg, TX) where 300 million sterile flies are expected to be produced weekly “as early as 2026” the report indicates.

Thankfully, winter temperatures should prevail soon. This should stop or delay fly movement within Mexico.

Back to the original question, and based on this information:

When: when will imports of Mexican cattle resume? Likely not until one of the sterile fly facilities in northern or southern Mexico is in operation and cases of NSW in feeder cattle brought in from southern to northern Mexico stop.

Despite the adjustments made by the beef industry on both sides of the border, when imports of live cattle from Mexico resume, it is likely that movement of live cattle from southern Mexico (or even illegal crossings into southern Mexico) will increase. This will likely increase the risk of NSW flies or larvae crossing the border into the US.

Therefore, I consider it wise to have FDA fast-track approval of specific protocols for the control of the fly or larvae in the 



Nebraska Cattlemen Selects Young Cattlemen’s Connections Class of 2026


Nebraska Cattlemen is pleased to announce the Young Cattlemen’s Connections (YCC) Class of 2026. The selection committee chose eleven emerging leaders for the prestigious two-year program to help these participants develop a solid foundation of industry knowledge and to strengthen the future of Nebraska’s beef industry. 

This program is made possible by our generous sponsors Farm Credit Services of America, Neogen, and the Nebraska Cattlemen Foundation.

Nebraska Cattlemen Foundation president, Loren Berger, stated, "We are excited to begin investing in our next class of YCC participants who are a very impressive group of young people with a hunger to learn about the various sectors of the beef cattle industry. The Class of 2026 will undoubtedly leave this program with sharper leadership skills, greater industry knowledge, and a strong understanding of what it takes to be a great cattle producer."

Young Cattlemen’s Connections Class of 2026
Roger Carpenter, Whitman
Ted Fanta, Plainview
Angie Huwaldt, Randolph

Garret Johnson, Grand Island
Reece Krueger, Lexington
Malina Lindstrom, Elm Creek
Rudy Pooch, Tecumseh
Jason Rainforth, Wisner

Ethan Schroeder, Hebron
Marde Thomas, Hastings
Dylan Vock, Lincoln

During the two-year program, YCC members are provided with extensive communication training, given the opportunity to tour multiple Nebraska-based agriculture production facilities, and trained on how to navigate state agencies and legislative processes.

To learn more about the Young Cattlemen’s Connections Program, please visit www.nebraskacattlemen.org



Bad Bets, Trade War Cited as Hansen-Mueller Seeks Bankruptcy Protection


Hansen-Mueller, the Nebraska grain company that drew scrutiny from state regulators after farmers said they weren’t getting paid, has filed for Chapter 11 bankruptcy protection, citing a string of costly missteps that ranged from failed business expansions to multimillion-dollar software woes.

On Nov. 17, Hansen-Mueller filed for bankruptcy.
 
In its petition, the company lays out a years-long series of costly business failures and mounting regulatory pressure that it says left the Omaha-based grain firm with no choice but to seek Chapter 11 protection.

Hansen-Mueller reports losing roughly $15 million on an attempted conversion of a Fremont pasta plant purchased in 2017; another $11 million on the development of a proprietary trading software platform that never worked; and about $10 million tied to the purchase and later sale of eight grain elevators acquired from 2016 to 2017.

The company also cites $3.5 million in arbitration losses, as well as the impact of Trump-era tariffs on its export business — all of which, it says, eroded working capital and accelerated its financial decline.

Company leaders say the situation worsened sharply after the Nebraska Public Service Commission suspended its grain dealer license, triggering inquiries from other state regulators, increasing pressure from creditors and forcing executives to divert their attention away from operations and a planned sale of company assets.

According to the filing, the loss of the license created a “domino effect” that drained staff capacity, strained cash flow and ultimately pushed Hansen-Mueller into Chapter 11 so it could protect its remaining value while pursuing a rapid sale process. The PSC has since reinstated Hansen-Mueller's grain dealers license.  

The company says it has cut its workforce to about 120 employees and argues that keeping key personnel in place — including its president and chief administrative officer, who have been working 14- to 16-hour days — is essential to maintaining operations during the bankruptcy.

In court filings, Hansen-Mueller reports between 1,000 and 5,000 creditors. The company lists assets in the range of $100 million to $500 million and liabilities in the same range.

The filings show that many of Hansen-Mueller’s largest unsecured creditors are familiar names across Nebraska’s farm country, including Ag Valley Coop in Edison, which is owed about $559,000, and Farmers Coop Grain & Supply in Trenton, owed $813,000. Producer Ag LLC of Lincoln also appears on the list with a claim of roughly $933,000. Several regional and national grain players — including Cargill, owed $2.57 million, and West Plains LLC in Omaha, owed $639,000 — are also among the top unsecured creditors.

Hansen-Mueller’s core business spans several major grain markets, including a dominant position in oats trading — where the company says it accounts for 30% to 70% of the futures market, moving roughly 18 million bushels a year through facilities in Minnesota, North Dakota, Wisconsin and Ohio. The company also handles more than 77 million bushels of wheat annually, serving mills and multinational processors through sites along the I-29 corridor and a leased fleet of private railcars. Beyond its oats and wheat divisions, Hansen-Mueller runs a nationwide cross-country trading desk for corn, soybeans, milo and feed, supported by offices in Kansas, Nebraska, Missouri, Ohio, Louisiana and Alabama.



Corn Residue Grazing Impacts on Soil

Ben Beckman, NE Extension Educator 


As winter approaches, corn residue offers a practical, low-cost grazing option for livestock. However, many landowners worry that it might hurt crop yield or soil health. Is that true?

Research from the University of Nebraska-Lincoln shows that with proper stocking rates, grazing corn residue has minimal downsides and provides real benefits. Studies reveal that grazing doesn’t significantly impact soil properties when done responsibly and can even improve microbial activity, which enhances nutrient cycling for the following crop.

UNL researchers tested both fall and spring grazing, finding that soil compaction stayed within safe limits, even at higher stocking densities. Grazing cattle helped return nutrients like nitrogen and phosphorus to the soil, enriching it for future crops. In some cases, soybean yields following the corn crop were even higher after residue grazing compared to ungrazed fields.

Proper timing and stocking rates when grazing are key to getting the best from both your fields and cattle. Winter grazing, when the ground is often frozen, lowers the risk of compaction. If

you graze late into the season, as fields thaw out, lower stocking densities and carefully time grazing around precipitation events.

By utilizing corn residue as a winter feed, livestock owners can benefit from sustainable soil and crop practices, reduce feed costs, and improve soil health, all while preserving—or even boosting—yields.



CAP Webinar: Getting Started with Hedging

Dec 11, 2025 12:00 PM 
With Jessica Groskopf, Extension Agricultural Economist, UNL Center for Agricultural Profitability


This introductory webinar breaks down the fundamentals of hedging as a commodity marketing tool, helping producers understand how futures contracts can manage price risk and protect revenue. You’ll learn when hedging makes sense, how it fits into an overall marketing plan, and see clear, practical examples you can apply directly to your operation. Designed for beginners who want more confidence in their marketing decisions.

Register here: https://cap.unl.edu/webinars

Miss the live webinar or want to review it again? Recordings are available — typically within 24 hours of the live webinar — in the archive section of the Center for Agricultural Profitability's webinar page, https://cap.unl.edu/webinars



DWFI Annual Report highlights 15 years of global strides in water and food security


Amidst today’s global challenges—including the escalated need for food and nutrition security under mounting population pressure–the mission of the Daugherty Water for Food Global Institute (DWFI) at the University of Nebraska has never been more vital. The institute’s recent annual report marks a year of critical research, capacity building and global thought leadership, and details significant progress across the Institute’s three core focus areas.

“Throughout its 15-year history, the institute has leveraged world-class University of Nebraska research; state expertise in agricultural and water resource management; and private sector partnerships to make real progress toward a water- and food-secure future for all,” said DWFI Executive Director Peter McCornick. The report also honors the nearly decade-long leadership of Dr. McCornick, who will retire from the University of Nebraska at the end of this year.

Key Outcomes and Impact Areas in FY 2025

1. Water management for high-productivity commercial agriculture
DWFI continues to solidify its expertise in climate-smart agriculture by innovating and implementing water-wise technologies and decision support systems. This year, DWFI reached several key milestones to help producers improve efficiency, reduce risk, and build resilience.
    The DAWN project is nearing completion and helping U.S. Corn Belt farmers make more informed decisions to increase profitability and sustainability.
    DWFI expanded its flux tower network to the Upper Colorado River Basin, providing crucial data for optimizing irrigation in more U.S. states.
    DWFI refined USDA models for crops like corn and soy to give producers more accurate data on precise water needs, bridging the gap between research and on-farm use.

2. Sustainable Smallholder Agricultural Water Management
Smallholder farmers produce a large share of the world’s food, yet many lack dependable access to water. This year, DWFI advanced partnerships and innovations that support agricultural climate resiliency across developing regions through practical, scalable approaches.
    Through a new Gates Foundation grant awarded last December, DWFI aims to expand Irrigation as a Service (IaaS) in sub-Saharan Africa, a promising solution to make irrigation more accessible to smallholder farmers.
    DWFI brought together business entrepreneurs from seven countries to foster collaboration around critical and nuanced smallholder irrigation solutions.
    DWFI published new reports exploring the costs and scalability of IaaS business models.

3. Environmental and Human Health in Agricultural Systems
Through science, policy and education, DWFI deepened its focus on the critical nexus of water, the environment and human health, ensuring agriculture remains part of the solution.
    The BioWRAP project is working to repurpose chicken feather waste into spray-on bioplastics, offering a sustainable way to protect soil, control weeds and manage water.
    Through its Water, Climate and Health Program, DWFI is investigating irrigation’s effects on heat stress and public health in the U.S. Great Plains and utilizing Earth observations for improved environmental health.

DWFI continues to prioritize education, capacity building and workforce development, as well as communications and convening, which are cross-cutting themes woven throughout all its initiatives. This year, the institute welcomed eight new faculty fellows, bringing its total to more than 130 University of Nebraska faculty. DWFI also supported 28 students conducting mission-relevant research. Its 2025 Water for Food Global Conference brought together 350 thought leaders from nearly 30 countries working toward the same goal of feeding our growing planet with less pressure on our water resources.

“As I conclude my time at DWFI, I am incredibly proud of our 15 years of progress and have every confidence that the institute and our global partners will continue to drive meaningful impact,” said Peter G. McCornick, executive director of DWFI.

DWFI’s 2024-2025 annual report can be found online at go.unl.edu/annualreport.



EPA & Army Corps Unveil Clear, Durable WOTUS Proposal 


U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin, together with Assistant Secretary of the Army for Civil Works Adam Telle, announced a proposed rule that would establish a clear, durable, common-sense definition of “waters of the United States” (WOTUS) under the Clean Water Act. The proposal, unveiled at an event at EPA headquarters in Washington, DC,  follows the Supreme Court decision in Sackett and delivers on the Trump Administration's commitment to protect America's waters while providing the regulatory certainty needed to support our nation’s farmers who feed and fuel the world and advance EPA’s Powering the Great American Comeback initiative. 

The agencies developed this proposed rule using input from multiple sources, including a pre-proposal recommendations docket, information from nine public listening sessions, and consultation comments from states, tribes, and local governments. Key proposed revisions include: 

    Defining key terms like “relatively permanent,” “continuous surface connection,” and “tributary” to appropriately delineate the scope of WOTUS consistent with the Clean Water Act and Supreme Court precedent;  

    Establishing that jurisdictional tributaries must connect to traditional navigable waters either directly or through other features that provide predictable and consistent flow;  

    Reaffirming that wetlands must be indistinguishable from jurisdictional waters through a continuous surface connection, which means that they must touch a jurisdictional water and hold surface water for a requisite duration year after year;  

    Strengthening state and tribal decision-making authority by providing clear regulatory guidelines while recognizing their expertise in local land and water resources;  

    Preserving and clarifying exclusions for certain ditches, prior converted cropland, and waste treatment systems; Adding a new exclusion for groundwater; and  

    Incorporating locally familiar terminology, such as "wet season," to help determine whether a water body qualifies as WOTUS;  

    In addition, the limitation to wetlands that have surface water at least during the wet season and abut a jurisdictional water will further limit the scope of permafrost wetlands that are considered to have a continuous surface connection under the proposed rule. These proposed changes are intended to provide clarity and consistency to the continuous surface connection definition.  

When finalized, the rule will cut red tape and provide predictability, consistency, and clarity for American industry, energy producers, the technology sector, farmers, ranchers, developers, businesses, and landowners for permitting under the Clean Water Act.  



Flood Applauds Commonsense WOTUS Proposal

 
U.S. Congressman Mike Flood issued a statement on the proposed rule announced by the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to revise the “Waters of the United States” (WOTUS) rule and provide greater certainty for farmers.
 
“For years, the Biden administration refused to listen to ag producers and the states that have given ongoing feedback about changes to the WOTUS rule. The Trump administration’s proposed rule reflects significant stakeholder input and is a big win for our farmers and ranchers. The new rule rolls back red tape, gives clarity to our ag producers, and protects Americans from the overreach they endured during the last administration.“



ACE Urges CARB to Move Quickly on E15 Implementation in California


The American Coalition for Ethanol (ACE) submitted comments to the California Air Resources Board (CARB) calling for swift implementation guidance for E15 following CARB’s Oct. 14 Scoping Workshop on E15 Use in California. Current regulations don’t cover E15 specifications or regulatory enforcement, so ACE underscored the urgency of CARB categorizing E15 as a gasoline-grade fuel, given the recent authorization of E15 sales through the passage of AB 30 and 14 years of safe, real-world use nationwide.

“We urge CARB to move quickly with a clear statement that the sale of E15 is allowed in California, and provide guidance promptly, so California fuel marketers can begin offering the low-cost and clean fuel to consumers immediately,” stated Ron Lamberty, ACE CMO in written comments.

Lamberty emphasized that E15’s safety and compatibility are well established through EPA and DOE research and more than a decade of everyday use by millions of motorists.

“E15 is no longer a new, untested product. We now have 14 years of safe, real-world use in unmodified tanks, lines, and dispensers at thousands of retail stations,” Lamberty noted.

The organization urged CARB to classify E15 as a standard gasoline grade—consistent with federal treatment—to avoid unnecessary costs and consumer confusion.

“Treating E15 as an alternative fuel would increase the cost for retailers and confuse drivers, limiting its use and reducing the air-quality benefits for California,” Lamberty wrote.

ACE’s comments also highlighted that California’s fueling infrastructure is already largely compatible with E15. To help retailers verify compatibility, Lamberty pointed CARB to the Flex Check tool on the organization’s website flexfuelforward.com, which allows marketers to check whether existing tanks, lines, dispensers, and hanging hardware can handle E15.

“The short answer is there should be little or no cost for the majority of California’s fuel terminals and retailers,” Lamberty wrote.

Lamberty noted in ACE’s comments that E15 typically retails 5 to 15 cents below E10, helping reduce fuel costs for drivers. The organization also anticipates faster-than-average adoption of E15 in California, driven by strong blending economics, compatible infrastructure, and the state’s existing low-RVP base fuel.

 

 

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