Tuesday January 06 Ag News - Farm Debt on the Rise - Bennett Steps Down from UNL - HPAI in Butler Co - CVA Hosts Winter Grain meetings - and more!

Climbing Farm Debt  

Weakening farm income for crop producers, increasing operating expenses, and rising feeder cattle prices led to more farm debt in 2025. According to Ty Kreitman of the Federal Reserve Bank of Kansas City, the volume of new farm operating loans nationwide was about 20% greater in the 3rd quarter of 2025 compared to the same quarter in 2024, and the average dollar size of loan was 30% more. Over 40% of Nebraska lenders reported higher loan demand, one of the highest in the Tenth District.

The Kansas City bank also reported slightly lower loan repayment rates across the Tenth District. Nebraska, though, was one of two states where bankers reported slightly improved repayment rates. However, while repayment rates improved in Nebraska, the proportion of loans on banks’ watch and classified lists rose to about 9% and 4%, respectively. Lenders also reported a modest increase in asset liquidation. More lenders said borrowers planned to sell assets to strengthen farm finances and the share of lenders who indicated borrowers did not plan to sell assets declined from 60% to 20%. Thus, loan volume, size, and repayment rates suggest producer financial health at the end of 2025 was slightly weakened compared to the beginning of the year. 



UNL chancellor stepping down Jan. 12

Rodney Bennett will step down as chancellor of the University of Nebraska–Lincoln effective Jan. 12, according to a message shared with the campus community.

The announcement comes after months of criticism, including UNL faculty leaders overwhelmingly passing a resolution expressing no confidence in Bennett’s leadership. The Faculty Senate voted 60–14 to approve the advisory resolution, the first no-confidence vote against a UNL chancellor in the university’s nearly 157-year history.

In his message announcing his departure, Bennett highlighted accomplishments during his tenure, including stabilizing enrollment, increasing incoming freshman numbers, setting records for first-year retention and six-year graduation rates, expanding sponsored research across multiple disciplines, advancing statewide extension efforts, reaching record fundraising milestones, and developing a financial sustainability plan.

Faculty criticism largely centered on Bennett’s handling of a $27.5 million budget reduction plan, including proposals to eliminate four academic programs. Faculty leaders said the process lacked transparency and sufficient shared governance, concerns Bennett and university leadership have disputed.

Bennett joined UNL as chancellor in July 2023. His contract is set to expire June 30 unless extended by the regents.



NDA REPORTS CASES OF HPAI IN COMMERCIAL AND BACKYARD FLOCKS

The Nebraska Department of Agriculture (NDA) is reminding poultry owners to continue to monitor for and protect their birds against Highly Pathogenic Avian Influenza (HPAI). In late December NDA in conjunction with the U.S. Department of Agriculture (USDA), confirmed a case of HPAI in a commercial flock in Butler County.  Since November, HPAI cases have also been confirmed in small backyard flocks in Keith, Howard, Washington and Scotts Bluff counties. 

“While these cases are not unexpected and coincides with the ongoing wild bird migration and what we are seeing in other states, it does serve as an important reminder for Nebraska poultry producers to stay vigilant in protecting their flocks,” said State Veterinarian Dr. Roger Dudley.  “Producers should know and monitor for HPAI symptoms and follow strict biosecurity practices, which can significantly reduce the risk of the disease affecting their flocks.”

What is HPAI?
HPAI is a highly contagious virus that spreads easily among birds through nasal and eye secretions, as well as infected food, water, and manure. The virus can spread in various ways from flock to flock, including by wild birds during migratory season, through contact with infected poultry, by equipment, and on the clothing and shoes of caretakers. Wild birds can carry the virus without becoming sick, while domesticated birds can become very sick and die.

What are the clinical signs of HPAI in birds?
Symptoms of HPAI in poultry include: a decrease in water consumption; lack of energy and appetite; decreased egg production or soft-shelled, misshapen eggs; nasal discharge, coughing, sneezing; incoordination; and diarrhea. HPAI can also cause sudden death in birds even if they aren’t showing any other symptoms. HPAI can survive for weeks in contaminated environments.

Resources for poultry producers
Resources are available for poultry producers at nda.nebraska.gov/animal/avian/ and from the USDA at https://www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza. Poultry experiencing signs of HPAI or unusual death should be reported to NDA at 402-471-2351 or the USDA at 866-536-7593.



Gov. Pillen Presents Annual State Threat Assessment
 
Against the backdrop of a KC-135 Stratotanker and an audience that included members of the Nebraska National Guard and the Committee on Pacific Conflict, Governor Jim Pillen announced the publication of the Annual State Threat Assessment. The report is a product of the Committee, which was created through the passage of LB 1300 in 2024. It was the first such committee created among U.S. states.  
 
The report provides a non-classified overview of potential threats facing Nebraska, and concrete actions the Governor’s administration has taken during the 2025 calendar year to mitigate them. Among the findings identified in the assessment -- the administration has maintained aggressive enforcement of new statutory protections, expanded readiness capabilities and pursued governor-led trade outreach to trusted Indo-Pacific partners.  
 
There are three categories that are top priorities within the administration – agriculture and food security as national security, securing the homeland, and cybersecurity and protection of state digital infrastructure. Each area is outlined below, with a summary of concerns and actions as identified by the Committee on Pacific Conflict.
 
Agriculture & Food Security as National Security
Nebraska’s agriculture industry plays a key role in our state – with a total of 44 million acres of farms and ranches that generate approximately 5.4% of the total U.S. farm sales. China’s dominance in key supply chains enables the use of economic coercion against countries that adopt policies that Beijing opposes. Through this, it creates restrictions on key materials like gallium and germanium – which are used in agricultural technologies such as precision farming equipment and pharmaceuticals.  
 
With a dependency on China, this could disrupt Nebraska’s fertilizer and biotech inputs during trade disputes, amplifying risk to crop yields and livestock health. In 2024, Nebraska passed LB 1301, the Foreign-owned Real Estate National Security Act. The new law disallows the purchasing or leasing of Nebraska agricultural land or property near military installations from countries of China, Russia, Iran, North Korea, Cuba, and Venezuela. Furthermore, we have expanded our market with allied nations to diversify export channels and reduce single-market vulnerabilities.  




CVA Coop Hosts Winter Grain Meetings

Join the CVA Grain Team for a Customer Appreciation Meal and Market Outlook Discussion as we address some key questions for 2026 including:
- What are realistic price possibilities on old crop bushels? 
- How to incorporate government program/insurance payments into my marketing plan
- Key themes to watch in 2026 and 2027

Meeting Dates
January 7 | 5:00 pm | Elgin, NE
January 14  | 10:30 am | St. Edward, NE
January 14 | 5:00 pm | Fullerton, NE
January 19 | 10:30 am | Seward, NE
January 20 | 10:30 am | Royal, NE
January 21 | 10:30 am | Oakland, NE
January 21 | 5:00 pm | Humphrey, NE
January 22  | 10:30 am | Daykin, NE 
February 4 | 5:00 pm | Laurel, NE 
February 9 | 10:30 am | Benedict, NE 
February 9 | 5:00 pm | Shelby, NE 
February 11 | 10:30 am | Randolph, NE 

More details and register here: https://www.cvacoop.com/wgm.  



Proposed WOTUS Rule Brings Certainty to Farmers

Farmers need rules that clearly define federal jurisdiction of Waters of the United States (WOTUS). The American Farm Bureau Federation today submitted comments to the Environmental Protection Agency (EPA) and the Army Corps of Engineers, detailing the impact WOTUS has on farmers and elements that must be included in the new proposed rule to ensure it can withstand future legal challenges.

“Farmers and ranchers support the creation of a legally durable rule that injects clarity into the regulatory process and does not leave landowners guessing what parts of their property are subject to regulation,” wrote John Newton, vice president of public policy and economic analysis.

The proposed rule implements Supreme Court rulings that narrowed the scope of federal Clean Water Act jurisdiction by creating definitions for important terms such as “relatively permanent” and “continuous surface connection,” which determine what should be considered a WOTUS.

Among Farm Bureau’s recommendations are:
    Further defining “relatively permanent” to narrow the regulatory scope;
    Clarifying when wetlands should fall under WOTUS;
    Continued exclusion of prior converted cropland; and
    Exclusion of ditches from WOTUS jurisdiction.

“Ever-changing rulemakings that redefine the scope of the CWA have created decades of regulatory uncertainty. We have seen WOTUS definitions change with each administration, guidance documents offered and then rescinded, and confusing litigation that have provided more questions than answers. Landowners, small businesses and American families are the ones who suffer the most. This administration has an opportunity to produce a durable rule that injects clarity and certainty into the definition of WOTUS.”



NPPC Welcomes Back O'Connor as Director of Federal Affairs
 
Molly O'Connor rejoins the National Pork Producers Council as director of federal affairs in the Washington, D.C., public policy office.

"NPPC is pleased to have Molly O'Connor join the government affairs team. Molly brings a strong record of legislative advocacy, staff leadership, and coalition management across Capitol Hill and multiple administrations," said NPPC Vice President of Government Affairs Maria C. Zieba. "I am confident Molly will hit the ground running and be a strong advocate and asset for America's pork producers."

O'Connor began her career with NPPC as an international trade intern in 2011 and now returns to the organization, bringing more than a decade of experience in federal government relations and food and agriculture policy. 

Most recently, O'Connor served as director of federal government relations at CropLife America, where she led federal advocacy strategy and represented the U.S. pesticide industry. Her policy portfolio included the farm bill, regulatory reform, supply chains, and international trade. 

O'Connor also served as senior policy advisor at OFW Law, directing federal lobbying efforts for commodity and food clients on issues relevant to NPPC.



Cow-Calf Costs and Returns Update
Will Secor, Ph.D.
Extension Livestock Economist
University of Georgia

Between late-November and mid-December, the USDA was releasing a flurry of data after the government shutdown this fall. Many important reports received most of the headlines (e.g., Cattle on Feed). However, the USDA also updated its Commodity Cost of Production and Return information.

The USDA estimates that cow-calf operations brought in $1,130 per cow in revenue and incurred $691 in operating expenses in 2024. This revenue figure includes sales of calves, stockers, and cull cattle. Operating costs include expenses for feed, purchased cattle for backgrounding, veterinary services, fuel, equipment repairs, and interest on borrowed funds. The difference between these provides a net return (above operating costs) of around $439 per cow in 2024. This would be the highest nominal figure since their data begins in the mid-90s. Adjusted for inflation, this would be around $70 per cow below the high of 2014 and around $17 per cow below 2015’s estimates.

These estimates vary widely across the U.S. In 2024, the USDA estimates that the Northern Great Plains received the highest revenue per cow at $1,392, followed by the Eastern Uplands ($1,221 per cow) and Basin and Range regions ($1,130 per cow). The lowest revenue region was the Fruitful Rim ($936 per cow). The regions with the lowest operating costs per cow were the Fruitful Rim ($384 per cow), Southern Seaboard ($527 per cow), and Mississippi Portal ($587 per cow). The region that was estimated to have the highest operating expenses was the Northern Great Plains at $952 per cow.

According to the USDA, the Fruitful Rim region saw the highest returns at a little over $550 per cow, while the Prairie Gateway area of the U.S. is estimated to have the smallest returns at around $335 per cow in 2024. These differences in returns reflect differences in revenue and operating costs, but operating costs appear to dominate differences in revenue. For example, the Fruitful Rim region is estimated to have had the smallest revenue in 2024 but also the smallest operating expenses.

2025 was another strong year for cow-calf producers across the U.S. It is likely that the final figures for last year will show returns exceeded those of 2024 and may have surpassed those in 2014 and 2015. Given the supply outlook for the year ahead, 2026 will likely be another strong margin year for producers. However, there are risks: continued market volatility from this fall and winter, policy uncertainty, reduced processor capacity, and risks of high-priced beef reducing quantity demand. Exactly how strong 2026 will be is still yet to be determined.