Friday July 26 Ag News

NEBRASKA SOYBEAN MANAGEMENT FIELD DAYS
Randy Pryor, Extension Educator, Saline County Extension
The 21st annual Soybean Management Field Days (SMFDs), scheduled for August 13-16, 2019, will focus on helping farmers stay competitive in a global marketplace. The field days will offer farmers research-based information to improve their soybean profitability.

The SMFDs will help soybean growers maximize productivity and profitability through smart decisions and efficient use of resources.  Meeting the world's growing food and energy needs starts right here in Nebraska at the 2019 Soybean Management Field Days!  Join us at a site near you. A complimentary admission and lunch included. CEUs are also available for Certified Crop Advisors.

The field days are sponsored by the Nebraska Soybean Checkoff in partnership with University of Nebraska Extension and are funded through soybean checkoff dollars. The efforts of the checkoff are directed by the United Soybean Board promoting progress powered by U.S. soybean farmers.

Locations are Sargent on Tuesday, August 13; Pilger on Wednesday, August 14; Plymouth on Thursday August 15; and Waverly on Friday, August 16. You can go to https://go.unl.edu/2019smfd for more information and directions.

Learn how to profitably apply the products of technology and research at the farm level. This educational event is for you - the soybean grower and agronomic representatives supporting the soybean industry. Experts will share their knowledge and experiences as they relate to soybean production, marketing and management.

Topics that will be included at the 2019 SMFDs include:
•        Making Sense of Production Costs and Policy Changes
•        Soybean Insects & Cover Crops
•        Hail Damage Impact on Growth and Development of Soybeans
•        Management of Cover Crops and Soybean Insects and Pathogens
•        Soybean Weed Control and Cover Crops
•        Cover Crop - Pros and Cons Associated with Soybean Production
•        Soybean Production and Agronomic Topics Associated with Cover Crops – Planting Rates, Row Spacing, Planting Dates, Maturity Groups, Irrigation Management

By attending a SMFD, you will see your checkoff dollars at work bringing you leading technology and ideas. The event consists of four stops across the state, each with replicated research, demonstration plots, lunch and time for questions. You can get ideas and insight about the challenges you face in producing a quality crop at a profitable price in today's global economy.

Crop production, disease, and insect specialists will be available to address your questions. Participants can bring unknown crop problems for complimentary identification. The field days begin with registration at 9:00 a.m. and concludes at 2:30 p.m. Free registration is available the day of the event. The program will be held rain or shine.

For more information about the field days and maps to sites, visit https://go.unl.edu/2019smfd, or contact the Nebraska Soybean Checkoff at 800.852.BEAN (2326) or your local Nebraska Extension office.



Southern Rust of Corn Confirmed in Southeast Nebraska
Tamra Jackson-Ziems, NE Extension Plant Pathologist

Southern corn rust  was confirmed on corn leaf samples from Fillmore and Nuckolls counties in southern Nebraska earlier this week. The disease had been confirmed in several states south and east of Nebraska during the prior weeks and has been active in deep southern states for several weeks.

The disease is currently at very low incidence in the fields from where samples were submitted. Warm, humid conditions may favor disease development, so fields in this area and elsewhere (especially in southern Nebraska) should be monitored frequently in the coming weeks for southern rust development.

Southern rust is caused by an aggressive fungus that can rapidly cause disease in susceptible corn hybrids under favorable weather conditions. The disease can cause significant yield loss in susceptible hybrids if it becomes severe, so producers and crop advisors should monitor closely for this disease. Disease development is strongly impacted by weather conditions and sometimes does not become widespread or severe.

Southern rust does not always require treatment, making scouting and disease monitoring critical. It may take two or more weeks under favorable weather conditions for the disease to become more severe and widespread. Severe disease that impacts a large percent of leaf area can impact yield and stalk strength (standability) at the end of the season.

Symptoms
Southern rust pustules are often numerous and tightly clustered in patches. They may appear tan to orange in color. Most spores are produced in raised rust pustules on the upper leaf surface. In contrast, common rust produces brick-red to brown spores on both the top and bottom of the leaves. Common rust has been found on corn samples from many areas across the state this year and sometimes has been more severe than in recent history due to favorable weather conditions during recent weeks. Some common rust pustules have obvious yellow haloes around them that are more common with southern rust. Symptoms also may appear similar to Physoderma brown spot. This is leading to some confusion in identifying rust in the field. Microscopic examination in the diagnostic laboratory can quickly determine whether rust spores are those of common rust or southern rust.

Favorable Weather
The rust pathogens do not overwinter here. Spores (urediniospores) must be blown into the area on winds from areas south of Nebraska. These fungi need moisture to germinate and infect, so high relative humidity, rainfall, and irrigation will hasten disease development. Warm temperatures also favor southern rust development, especially temperatures in the upper 70s to 80s F, which are optimal for the fungus, even if they occur during the overnight hours. Cooler and drying conditions will help slow disease spread. This was observed in 2018 when the disease was confirmed in Nebraska early in the growing season and failed to become widespread in most counties.

Management
Most hybrids are susceptible to the southern rust fungus. Familiarize yourself with your hybrids’ anticipated reaction to the disease by reviewing hybrid ratings provided by the seed company.

Monitor disease in susceptible hybrids to determine which fields may need treatment. Foliar fungicides can effectively manage the disease. Most fungicides can provide protection of leaves from future infections for 21-28 days, so application timing is critical. Treating before disease develops may lead to loss of full product efficacy before the disease reaches a critical level. Treating too early can result in the need for reapplication later if the disease spreads and worsens after the time when the earlier fungicide application has worn off.  

The wide range of planting dates across Nebraska this year has resulted in a wide range of corn growth and reproductive stages in fields, some of which are still in the vegetative growth stages. Later planted fields that are earlier in their maturity are at the greatest risk for yield loss if the disease develops there soon. Sometimes southern rust can take from several days to several weeks to develop, if at all, once it’s identified in an area. Treatment may not be necessary in vulnerable fields, so scouting is critical. Spraying early may mean a second application is necessary later in the season to protect plants during later grain-fill stages if the disease increases in severity once the fungicide has worn off. Scouting corn often is recommended to monitor for this and other diseases and their spread.



Nebraska Corn’s statement on MFP announcement

The Nebraska Corn Board and the Nebraska Corn Growers Association issued statements today following the U.S. Department of Agriculture’s (USDA) release of county payment rates for the Market Facilitation Program (MFP).

“With wet spring planting and growing conditions, ongoing trade disputes and the EPA’s destruction of the ethanol demand market, farmers have been in a state of uncertainty for many months,” said Dan Nerud, president of the Nebraska Corn Growers Association and farmer from Dorchester. “We’re hopeful USDA’s MFP 2.0 will greatly support our state’s corn farmers and provide relief during a time of uncertainty for ag markets.”

The $16 billion package was announced earlier this year, when President Trump called upon U.S. Secretary of Agriculture Sonny Perdue to develop a relief strategy for U.S. farmers impacted by trade disruptions and retaliatory tariffs on U.S. agricultural goods. While Nebraska Corn is hopeful the MFP will provide some relief for Nebraska’s corn farmers, the ultimate goal is fair and free trade.

“We continue to be in contact with the president’s administration as well as Nebraska’s congressional delegation to communicate the importance of the passage of the USMCA,” said David Bruntz, chairman of the Nebraska Corn Board and farmer from Friend. “Not only is this agreement important, as Mexico and Canada are extremely important markets, but we must also continue to explore and pursue agreements with other nations so we aren’t being left behind in global ag trade.”

Sign up for the MFP program begins Monday, July 29 and ends Friday, December 6. More information can be found by visiting farmers.gov.



Nebraska Scientist Recognized with Distinguished Service Award

Dr. Gary Rohrer, acting research leader at the US Meat Animal Research Center (US MARC) in Clay Center, Nebraska, was recognized with the Charles Stanislaw Memorial Distinguished Service Award at the annual meeting of the National Swine Improvement Federation (NSIF). The meeting was held November 29-30 in Nashville.

Purpose of this award is “to recognize individuals for their record of distinguished service to the pork industry through involvement in creating, implementing, supervising and/or participating in genetic improvement programs”.

Dr. Rohrer grew up in Illinois and received his BSc in animal science from University of Illinois at Urbana-Champaign and his MS and PhD in animal breeding and genetics from Texas A & M.

Since 1991, he has been research scientist at US MARC, where he has become a leader in the field of swine genetics and genomics. His lab is prominent in generating population and genetic resources, phenotypic and genomic data for understanding the role of genetics in explaining phenotypic variation in swine.

Dr. Rohrer’s recent contributions have crucial to the success of the novel field of swine genomics. Specifically, his major contributions include the development of the very first comprehensive genetic and physical maps of the pig, both essential in the process of sequencing the porcine genome. He was actively involved in the complex process of sequencing the swine genome, and he participated in the winding process of obtaining funds, development of strategies, scientific and data support, and interpretation and dissemination of the results.

Dr. Rohrer also participated in the development of the first high-density genotyping application designed for pigs (Porcine SNP60 BeadArray), a platform capable of simultaneously genotyping over 60,000 DNA markers per pig, with tremendous impact worldwide. In addition, his work has included discovery of DNA markers used routinely by industry to improve a wide variety of traits from growth and fertility to behavior and meat quality.

In his acceptance speech, Dr. Rohrer acknowledged his colleagues and mentors from US MARC, especially Dr. Dan Laster, former director of US MARC who provided support and guidance during his formative years.

Scientists and producers from Nebraska recognized with this prestigious award in the past have included Dr. Irvin Omtvedt (1982, University of Nebraska Lincoln), Dr. Gordon Dickerson (1988, US MARC & University of Nebraska-Lincoln), Dr. Rodger Johnson (1998, University of Nebraska-Lincoln), Dr. Jim Schneider (2008, US MARC) and Max Waldo (2009, Waldo Genetics).



Ricketts Detassels with Young Nebraskans, Meets with Seed Corn Companies

On Thursday, Governor Pete Ricketts and Nebraska Department of Agriculture (NDA) Director Steve Wellman joined crews to detassel a field of seed corn during their July Ag Adventure near Seward. 

“Detasseling was great fun and very educational,” said Governor Ricketts.  “It is an awesome opportunity that helps provide over 7,000 jobs for Nebraskans every year and connects our next generation to opportunities in agriculture.”

Each summer, thousands of Nebraskans work as detasselers, performing indispensable seasonal labor for the seed companies operating in the state.  For generations, Nebraska’s teachers, college students, high school students, middle school students, and school bus drivers have welcomed the opportunity to work the fields.

Detasseling provides a welcome source of summer income that helps them save for college and pay family bills.  Given the desirability of these jobs, seed corn detasseling contractors in Nebraska have waiting lists of hundreds, if not thousands, of Nebraskans willing to step up and do this work.

After detasseling, Gov. Ricketts and Director Wellman addressed Bayer’s teams from Beaver Crossing and Waco, visited Corteva’s facility in York, and met up with another detasseling crew near York.



NE Nebraska Corn Board to meet

The Nebraska Corn Board will hold its next meeting Tuesday, Aug. 13 through Thursday, Aug. 15, 2019 at Younes Conference Center located at 416 W Talmadge Road, Kearney, Nebraska.

The Board will conduct regular board business and hold election of officers during the afternoon of Aug. 13.  During the mornings of Aug. 14 and Aug. 15, the board will hold a joint Nebraska Corn Growers Association and Nebraska Corn Board meeting.  The meetings are open to the public and will provide an opportunity for public discussion.  A copy of the agenda is available by writing to the Nebraska Corn Board, P.O. Box 95107, Lincoln, NE  68509, sending an email to nikki.bentzinger@nebraska.gov or by calling 402-471-2676.



Farm Finance and Ag Law Clinics this August

Free legal and financial clinics are being offered for farmers and ranchers at six sessions across the state in August. The clinics are one-on-one meetings with an agricultural law attorney and an agricultural financial counselor. These are not group sessions, and they are confidential.

The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters. Here is an opportunity to obtain an independent, outside perspective on issues that may be affecting your farm or ranch.

Clinic Sites and Dates
    Grand Island — Thursday, August 1
    North Platte — Thursday, August 8
    Lexington — Thursday, August 15
    Fairbury — Thursday, August 22
    Norfolk — Tuesday, August 27
    Valentine — Wednesday, August 28

To sign up for a free clinic or to get more information, call the Nebraska Farm Hotline at 1-800-464-0258.

Funding for this work is provided by the Nebraska Department of Agriculture, Legal Aid of Nebraska, North Central Extension Risk Management Education Center, and the USDA National Institute of Food and Agriculture.



OATS FOR FALL PASTURE OR HAY
Bruce Anderson, NE Extension Forage Specialist

     It’s almost August and fall is just around the corner.  Could you use some extra pasture or hay in late September and October?  Oats might be your answer.

     Oats may be one of our most under-used fall forages.  That's right.  Plain old dull oats.  It grows fast, thrives under cool fall conditions, has excellent feed value, and can produce over 2 tons of hay or pasture yet this year.  Plus, it dies out over winter, so it protects soil without causing planting problems next spring.

     To plant oats, drill about 3 bushels per acre in early August for maximum yield potential.  Planting after Labor Day may not succeed well due to a short growing season.  A fully prepared seedbed usually is best, but you can plant oats directly into wheat stubble or other crop residues if weeds are killed ahead of planting.  Even flying oats onto corn or bean fields severely damaged by weather or to be chopped early for silage can work, although rye tends to work better for flown on seed.  Avoid fields with herbicide carryover, and topdress 40 pounds of nitrogen per acre unless the previous crop was heavily fertilized.

     With good moisture, oats will be ready to graze about 6 to 8 weeks after emergence.   Calves and yearlings can gain over two pounds per day.  Be careful to avoid grass tetany on lush oat pasture; ask your veterinarian if you should supplement with magnesium.  Also, don't suddenly turn livestock out on oat pasture if they have been grazing short or dry pastures.  Sudden respiratory problems can occur.

     For hay, cut oats soon after plants begin to dry out following a killing freeze, or cut earlier if plants reach a desirable growth stage.  Oats can accumulate nitrates, so test hay before feeding.

     If you have good soil moisture, give fall oats a try.  Some of your best forage growth may still be ahead of you.

RYE, RYEGRASS, OR WHATEVER
     What comes to mind if I say forage rye?  What about ryegrass?  These words can mean half a dozen very different types of forage.

     The words rye and ryegrass cause much confusion.  Rye typically refers to the cereal or small grain plant.  As a forage, it can produce high tonnage but is relatively coarse and less palatable than some other forages.  Like wheat, rye varieties can be either winter ryes or spring ryes.  The more common winter varieties stay short and leafy during fall, but survive winter.  Then in spring they grow rapidly and can be grazed, cut for hay, chopped as silage, or produce grain. If spring types are planted in the fall, they grow tall, similar to oats, and then die over winter.

     In contrast, ryegrass is a very palatable, high quality grass.  There are several types of ryegrass with variety differences within each type.  For example, perennial ryegrass produces very high quality pasture but only lasts for a few years under most Nebraska conditions.

     The biggest confusion comes from annual ryegrass and Italian ryegrass.  Technically, they refer to the same plants but in the forage world they have acquired different meanings.  Annual ryegrass refers to varieties that are used for turf or as winter and spring forage in the Gulf-state region.  Fall plantings in Nebraska grow rapidly, produce good late fall grazing, and usually but not always die over winter.      Italian ryegrass, however, is more like a biennial and produces mostly leaves while growing throughout summer and fall if moisture is available.  Many Italian ryegrass varieties survive winter and then produce seedheads the following spring.

     Still confused?  Then be sure to carefully describe to your seedsman when you want to plant and how you want to use your grass.  Then they can help you get the right kind of rye or ryegrass.



2019 Governor’s Charity Steer Show set for August 10

The 2019 Governor’s Charity Steer Show will mark the 37th consecutive year the beef industry has raised funds to help families who utilize the Ronald McDonald House Charities of Iowa.

This year, the show ring competition takes place Saturday, Aug. 10, at 4:00 p.m., in the Pioneer Livestock Pavilion at the Iowa State Fair. Celebrities will lead 25 steers around the ring, vying for the championship designation, showmanship honors, and the People’s Choice award.

Immediately following the competition, the steers will be sold at auction with proceeds going to the Ronald McDonald House Charities of Iowa. Both the show ring event and the auction are open to the general public.

Since the Iowa Beef Industry Council and the Iowa Cattlemen’s Association began the Governor’s Charity Steer Show in 1983, the effort has raised more than $3.5 million for the Des Moines, Iowa City and Sioux City Ronald McDonald House Charities. The houses provide a “home away from home” for families of seriously ill children being treated in area hospitals and have served nearly 47,000 families.

Each of the 25 steers are owned by Iowa youth who have cared for the animals and participated in other shows with them. The youth prepare the animals for the show and assist a celebrity in the show ring. Sponsors reimburse the youth for the cost of the animal and choose the celebrity.

Youth participating in the 2019 Governor’s Charity Steer Show will also learn additional information about the beef industry on Thursday, and volunteer some time with the Ronald McDonald House Charities in Des Moines on Friday, Aug. 9.

A new website has been created to raise the awareness and impact of the Governor’s Charity Steer Show. Iowans interested in helping with the cause can donate online at www.iowagovernorscharitysteershow.com and support the efforts of the beef industry.



Motorcade for Trade to Travel to Key Congressional Districts and State Agriculture Fairs throughout August to Support Passage of USMCA

Farmers for Free Trade, the nationwide, bipartisan coalition of ag commodity groups today announced that their Motorcade for Trade tour will roll through major agricultural state fairs during the August recess in support of the U.S.-Mexico-Canada Agreement (USMCA). The Motorcade for Trade tour includes a 12-foot RV that members of Congress from both parties have climbed aboard at stops across the country. The August recess tour will focus on summer state agricultural fairs in an effort to continue to build support among farmers, who have benefited greatly from NAFTA and will benefit further from USMCA.

“The only way to get USMCA over the finish line is with the vocal support of American farmers,” said Angela Hofmann, Co-Executive Director of Farmers for Free Trade. “Our August recess tour is more than just public education on the agreement. At every stop we encourage farmers to write, tweet, meet with or otherwise engage with their member of Congress. When a farmer in a member of Congress’s home district asks to put the future of their farm over partisanship or politics that really resonates.”

Since April, the Motorcade for Trade has made over 50 stops in over 20 states. The tour has included visits with over 30 members of Congress and their staff. Following the August recess tour, the Motorcade for Trade will travel to Washington D.C. for a rally in support of USMCA on September 12th.

Current August recess Motorcade for Trade stops are listed below. 

August 6-8, 2019
Event: Minnesota Farm Fest
Location: Morgan, MN 56266
Time: 8 a.m. – 5 p.m. (Daily)

August 8-11, 2019
Event: Iowa State Fair 
Location: Des Moines, IA 50317
Time: 9 a.m. to 9 p.m. (Daily)

August 13, 2019
Event: Illinois Ag Day (Illinois State Fair)
Location: Springfield, Illinois 62794-9427
Time: 9 a.m. to 9 p.m. (Daily)

August 14, 2019
Event: Illinois State Fair -Democrat Day
Location: Crown Plaza Hotel- (Springfield, Illinois)

August 28-29, 2019
Event: Farm Progress Show
Location: Decatur, Illinois
Time: 9 a.m. to 9 p.m.

September 12, 2019
Event: Ag Rally for USMCA
Location: Washington D.C.
Time: 12:00-1:00

Additional dates and stops will be added. For more information on the tour or to participate in an event contact matt@farmersforfreetrade.com or angela@farmersforfreetrade.com.      To learn more about Farmers for Free Trade visit: https://farmersforfreetrade.com/. 



Second Annual Dairy Experience Forum Pushes Industry to Think with the Mindset of the Next Generation to Drive Disruptive Innovation

Last week’s Dairy Experience Forum in St. Paul, Minn., brought together dairy farmers, industry experts and partners with the goal of sparking disruptive innovation to drive the industry forward. The second annual forum, hosted by Midwest Dairy and Dairy Farmers of Wisconsin, built upon last year’s forum to continue important conversations around dairy innovation, sustainability and the consumer mindset of Generation Z.

“Last year’s forum challenged us to dive deep into how we can put the consumer above everything else and provide an excellent dairy experience,” said Lucas Lentsch, CEO of Midwest Dairy. “This year’s forum was designed to take that discussion to the next level and equip us with insights and tools to pave the way for disruptive dairy innovation. Our hope is that attendees take what they learned and bring it to their local/industry groups, boards, co-ops, and other partners to challenge the status quo thinking.”

Nearly 400 dairy farmers, processors and partners attended the three-day event held at the Saint Paul RiverCentre July 16-18, 2019. Speakers and panelists included industry leaders from Amazon, Ben & Jerry’s, General Mills and Taco Bell, as well as U.S. Dairy Export Council president and CEO, Tom Vilsack.

Among the highlights of the event was a live Generation Z consumer focus group of eight young adults ages 18-21 that discussed how their generation’s personal values and perceptions of food impact how they make purchasing decisions. During the discussion it became apparent that while Generation Z (born between 1996-2010) has some similarities to the millennials who proceed them, they are also very different. Overall, the group identified themselves as skeptics, career-focused, more protective of their social media exposure, concerned about equality and driven to make the world a better place. Given their on-the-go-lifestyles, convenience is a top priority, which provides numerous untapped opportunities for dairy to innovate and create products that will fit consumers’ ever-changing needs.

“It is essential that we think about the values of Gen Z now in order to establish trust and brand loyalty among a generation that will have huge buying power in the years to come,” said Lentsch. “As an industry, we need to pay attention to what they care about and be proactive in creating innovative products that meet their needs, instead of being reactive and missing opportunities. Gen Z is setting the trends today that other generations will follow tomorrow, so it is essential that dairy is part of that conversation.”

Building off the discussion of proactive and disruptive innovation, Lentsch hosted an Innovation Panel, which reinforced that in order to truly innovate, the dairy industry needs to tap into the consumer mindset and establish a type of brand love for dairy. During this panel, marketing and product development leaders from Associated Milk Producers Inc. (AMPI), General Mills and Sartori Cheese discussed the need for consistent and spontaneous innovation in order to spark brand love. As an industry, dairy has always been very consistent – providing a fresh, nutritious product produced by farmers. However, there is opportunity for dairy to be more spontaneous by creating products that disrupt the category and meet consumers’ needs in new and unexpected ways.

When discussing an example of disruptive innovation, General Mills Director, Dairy Platform Supply Chain Leader Erika Thiem shared the story of a recent journey her team took after seeing a loss of market share in the traditional yogurt segment. They knew they needed something different – even if it meant possibly cannibalizing some of their own sales.

“We needed to find out why consumers were firing traditional yogurt products in the category,” said Thiem. “Falling in love with what the problem was, led us to create a new French-style yogurt which fulfills the need of a consumer who’s looking for a calm moment to relax. Taking the time to understand the job the product needed to do for the consumer really helped us follow the innovation path.”

Another hot topic of the forum was a discussion about e-commerce and how it is both changing the way consumers shop for their food and also how they discover new products. With online food sales expected to grow 20 percent by 2023, there is opportunity for dairy as consumers will continue to seek out foods that are fresh, local, convenient and align with their values. While the process for discovering these foods might look different in the future, e-commerce is very exciting as it allows niche products to reach an even larger audience much faster and to build brand loyalty much more quickly than traditional brick-and-mortar stores. Research shows once a consumer buys your product online, they are likely to purchase it time and time again.

“The e-commerce panel reminded us that while shopping for your food online will only increase over the years, it doesn’t mean that traditional grocery stores will go away – we will just need to think differently about how we bring our products to market in each of these avenues,” said Allen Merrill, Midwest Dairy chairman of Midwest Dairy’s board of directors. “For example, future consumers may buy all their groceries online, but they will still visit their local grocery store to explore and discover new products and brands. This offers a tremendous opportunity for new dairy innovation, and that is very exciting.”

Former U.S. Agriculture Secretary Tom Vilsack and president and CEO of the U.S. Dairy Export Council also shared insights about today’s global consumer and the opportunity for dairy to meet the needs of consumers around the world, which is essential as the world’s population continues to grow at a rate of 1.07% a year, equaling roughly 82 million people.

“Roughly 95-97 percent of the world’s population lives outside the U.S. and that is a population that continues to grow,” said Vilsack. “It’s a younger population in developing and developed countries where incomes are rising, the middle class is expanding, and cities are growing. There is a tremendous demand for dairy protein. So, in addition to having so many consumers for our products, the world needs and wants dairy.”

Lastly, sustainability continues to be an important driver for consumers, and the Generation Z focus group participants, as well as several speakers, discussed how farmers are the solution for sustainability issues – not the problem. On the front lines and with a deep investment in animal and land stewardship, dairy farmers can address root sustainability issues like water usage, greenhouse gas emissions, caring for the earth and animal welfare. While this is an everyday mission for farmers, speakers challenged farmers to proactively share the stories about how they are caring for the world in tangible ways in order to better connect consumers with the truths about dairy farming and sustainability.

Next year’s forum will continue to build on these important conversations. For more information on this year’s forum, visit DairyExperienceForum.com.



FCC Prepares to Launch Precision Agriculture Connectivity Task Force

The Federal Communications Commission is forming a new task force to advise the commission on how to ensure farmers and ranchers have the connectivity they need to use and benefit from precision agriculture.

The task force will work with USDA to develop policy recommendations to promote the rapid, expanded deployment of broadband internet service on unserved agricultural land, with a goal of achieving reliable capabilities on 95 percent of agricultural land in the U.S. by 2025.

Many of the latest yield-maximizing and environmentally friendly farming and ranching techniques require broadband connections for data collection and analysis performed both on the farm and in remote data centers, American Farm Bureau Federation President Zippy Duvall wrote in a letter last year urging lawmakers to support the Precision Agriculture Connectivity Act of 2018, which was ultimately incorporated into the 2018 farm bill to become law.

“Today’s farmers and ranchers are using precision agricultural techniques to make decisions that impact the amount of fertilizer they need to purchase and apply to the field, the amount of water needed to sustain the crop, and the amount and type of herbicides or pesticides they may need to apply,” Duvall wrote.

While FCC data shows that 39 percent of rural Americans lack access to minimum broadband speed service (25 Mbps/3 Mbps), compared to only 4 percent of urban Americans, there is no information about connectivity on cropland and rangeland.

The Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States will:
-    Identify and measure current gaps in the availability of broadband internet service on agricultural land;
-    Develop policy recommendations to promote the rapid, expanded deployment of broadband internet service on unserved agricultural land, with a goal of achieving reliable capabilities on 95 percent of agricultural land in the U.S. by 2025;
-    Promote effective policy and regulatory solutions that encourage the adoption of broadband internet service on farms and ranches and promote precision agriculture;
-    Recommend specific new rules or amendments to existing FCC rules to achieve the goals and purposes of the policy recommendations described in the second bullet;
-    Recommend specific steps the FCC should take to obtain reliable and standardized data measurements of the availability of broadband internet service to target FCC funding for the deployment of broadband internet service to unserved agricultural land; and
-    Recommend specific steps the commission should consider to ensure the expertise of the USDA secretary and available farm data are reflected in future FCC programs dedicated to the infrastructure deployment of broadband internet service and to direct available funding to unserved agricultural land.

The 15-member task force, which has yet to be announced, will include farmers and ranchers from a variety of geographic regions and farm sizes, as well as farmers representing tribal agriculture. Also represented on the task force will be internet service providers, the electric cooperative and satellite industries, precision agriculture equipment manufacturers, state and local governments, and people with relevant expertise in broadband network data collection, geospatial analysis and coverage mapping.



NPPC ISSUES "MEAT OF THE MATTER" HIGHLIGHTING NEED FOR LABOR REFORM

There is a severe shortage of labor in the pork industry both on farm and in packing plants, and that's why NPPC is actively advocating for reform of the H-2A visa program, National Pork Producers Couincil Vice President and Counsel, Global Government Affairs Nick Giordano wrote in a "Meat of the Matter" published this week. Despite growing opportunities for employment and rapid wage growth, the pork sector struggles to find workers. Our production is a year-round endeavor and due to its seasonality component, pig farmers are unable to secure their workforce needs through the H-2A visa program. Agricultural visa reform is clearly needed. Agricultural visa programs should be designed with the flexibility to meet the needs of all agricultural producers—from fruit and vegetable farmers to dairy and pig farmers. Year-round labor needs should be a primary focus of any H-2A reform or the foundation of any new program. NPPC has been working closely with other agricultural stakeholders to stress the importance of agricultural visa reform to both the Trump administration and Congress.



SENATE BILL TO ADD AG INSPECTORS RECEIVES COMMITTEE APPROVAL

The Senate Homeland Security and Governmental Affairs Committee approved legislation Wednesday that would ensure the safe and secure trade of agricultural goods across our nation's borders by authorizing U.S. Customs and Border Protection (CBP) to hire additional agricultural inspectors to fully staff America's airports, seaports and land ports of entry. The legislation, Protecting America's Food & Agriculture Act of 2019, was introduced earlier this month by Sens. Gary Peters (D-Mich.), Pat Roberts (R-Kan.), John Cornyn (R-Texas) and Debbie Stabenow (D-Mich.).



U.S., CHINESE OFFICIALS HOLDING TRADE TALKS NEXT WEEK

The White House announced on Wednesday that U.S. Trade Representative Robert Lighthizer and Secretary of Treasury Steven Mnuchin will travel to Shanghai, China, next week to continue trade talks. The trade talks will begin July 30 and will cover a range of issues, including agriculture and non-tariff barriers. "There'll be a few more meetings before we get a deal done," Mnuchin told reporters, CNBC reported. "I wouldn't expect that we'll resolve all the issues. But the fact that we're back at the table at the direction of the two presidents is important." Bloomberg recently reported that the Chinese government has suggested waiving tariffs on certain U.S. agricultural exports including pork. If actually implemented for pork, this would be a very significant development.




Déjà Vu All Over Again: Feinstein, Toomey Seek to Prop Up Big Oil

Senators Dianne Feinstein (D-CA) and Pat Toomey (R-PA) have once again introduced legislation to gut the Renewable Fuel Standard, this year called the Restore Environmental Sustainability to Our Renewable Energy (RESTORE) Act. Sen. Susan Collins (R-ME) is also an original co-sponsor of the ill-conceived legislation. Geoff Cooper, president and CEO of the Renewable Fuels Association, released the following statement:

“Perhaps Senators Feinstein and Toomey are confused about the RFS. There is no ‘corn ethanol mandate’ under the program and there never has been. Yet, the senators are again seeking to bolster the fossil fuels industry by trying to kill one of the most successful environmental and climate policies ever enacted by Congress. We are confident that, as with past attempts, this legislation will go nowhere.

“It is particularly ironic today that the senators would dare suggest this legislation would ‘restore environmental sustainability’ when in fact it would force more petroleum into our nation’s fuel supply. Whether it’s oil spills in the Gulf, increased carbon emissions, or earthquakes in fracking country, what is environmentally sustainable about today’s oil industry?

“On the contrary, renewable fuels like ethanol reduce greenhouse gas emissions by 40-50% compared to gasoline, while also slashing harmful tailpipe pollutants like particulate matter and carbon monoxide. Economically, ethanol supports jobs in rural America and brings down the cost of gas for consumers around the country. Renewable fuels are a win-win for the environment and consumers, and we invite the senators to visit an ethanol plant in their state to learn more.”

Cooper also pointed out that corn ethanol has played a significant role in achieving the goals of the Low Carbon Fuels Standard in Sen. Feinstein's home state of California. According to the California Air Resources Board, ethanol use is responsible for reducing greenhouse gas emissions from the California transportation sector by 18.8 million metric tons from 2011-2018. That’s equivalent to removing 4 million cars from the road for an entire year or eliminating the annual GHG emissions from five coal-fired power plants.

Thursday July 25 Ag News

USDA Plans Full-Function FAD Exercise in September

In an ongoing effort to prepare the pork industry for a potential foreign animal disease (FAD), the USDA is working on a full-function exercise on foreign animal disease (FAD) that will be conducted the week of September 23. The exercise will focus on a fictional outbreak of African swine fever and the subsequent response by federal and state authorities along with the rest of the pork industry.

The overall purpose of this exercise is to better prepare the U.S. pork industry and its stakeholders in the event of an actual FAD outbreak. Per the USDA’s Veterinary Services overview, this functional exercise will focus on exercising plans, policies, procedures, and staff members involved in management, direction, command, and control functions.

During the exercise, participants will validate and evaluate capabilities, multiple functions/sub-functions, or interdependent groups of functions; they will also respond to an exercise scenario with event updates in a realistic, real-time environment. In addition, participants will assess the adequacy of response plans and resources. The exercise simulates deployment of resources and personnel, involves rapid problem solving, creates a highly stressful environment and involves multiple functions.

“Everything in this type of exercise is done for a reason,” says Dave Pyburn, DVM, senior vice president of the National Pork Board’s science and technology department. “We’re trying to create a realistic scenario of a confirmed foreign animal disease in this country to see how each stakeholder reacts and to find the gaps that need more work. It’s about finding ways to improve to help protection our nation’s swine herd.”

Iowa to Hold Multiple FAD Workshops
Over the next few weeks, the Iowa Pork Industry Center and Iowa State University extension swine specialists will offer five workshops to help producers understand state and federal responses to a foreign animal disease (FAD) outbreak and learn how to use Secure Pork Supply (SPS) resources to prepare for an FAD outbreak.

The single-day workshops (in-person or online) will start with FAD Prep 101. Topics will include national movement standstill, quarantine and control areas, mass depopulations and disposal options. It will also answer the big question of how SPS can help your business continue during an FAD outbreak. Part two of the workshop is FAD Prep 201. It will cover the resources in the SPS plan and how to apply it to your individual farm.

Workshops are scheduled for:
July 29, Le Mars, IA
July 30, Independence, IA
August 6, Garner, IA
August 7, Washington, IA
August 13, Marshalltown, IA

All workshops include FAD Prep 101 from 10:00 a.m. to noon and FAD Prep 201 from 12:30 to 3:30 p.m. Complete this online form to sign up for any of the following workshops. https://docs.google.com/forms/d/e/1FAIpQLSdFFqKqoWh9ZxbgSoSUf8PyzR6ko67LvDAZBrkxgN-Bm4hkjA/viewform   There is no charge to attend.



Major Grain Expansion at NEW COOP - Glidden Location

The Board of Directors and Management of NEW Cooperative are pleased to announce the expansion of the Glidden Location. The major expansion will include a new 500,000-bushel grain storage to be completed before fall of 2019.

This addition will certainly be a dramatic improvement for producers delivering into the Glidden location. The desired outcome is to simply get our farmers in and out of the facility and back to the field faster. This expansion will allow Glidden to handle a larger inflow of product expected in the coming years.



CATTLEMEN'S BEEF BOARD LAUNCHES REDESIGNED WEBSITE AT WWW.BEEFBOARD.ORG

The Cattlemen’s Beef Promotion and Research Board (CBB) has launched a newly redesigned and updated website at www.beefboard.org that will make it easier for cattle producers to quickly find information about the national Beef Checkoff program.

“One of our primary goals is to better communicate with producers so that they know exactly how their checkoff dollars are being spent,” said Greg Hanes, CEO of the Cattlemen’s Beef Board. “By updating our website, we’re  continuing our mission of clear communication that will help producers become more aware of how the checkoff is positively influencing beef demand.”

The website now features revised navigation and a blog-like structure that makes it easier for visitors to quickly find content and information that’s relevant to their unique needs and interests. Key information – including frequently asked questions (FAQs), the Beef Industry Long Range Plan and an explanation of how checkoff money is invested – is readily available on the website’s home page.

In 2018, the CBB launched The Drive, a complimentary producer newsletter that contains the latest industry facts, statistics and stories highlighting the many ways checkoff dollars are driving demand for beef worldwide. Articles, infographics and other content from current issues of The Drive’s print and email editions are featured prominently on the updated website, keeping it fresh and encouraging repeat visits. Website visitors may also sign up for a complimentary subscription to The Drive.

“We’ve received extremely positive feedback about The Drive since introducing it last year,” Hanes said. “Now, by making The Drive’s content available on the new website, we’re providing producers with the opportunity to get checkoff information online as well as in print or via email.”

For more information about the Beef Checkoff and its programs, including promotion, research, foreign marketing, industry information, consumer information and safety, contact the Cattlemen’s Beef Board at 303-220-9890 or visit the new website at www.beefboard.org.



RFA, Hauk Designs to Showcase Ethanol Benefits with E85 Flex-Fuel Off-Road Project
       
The Renewable Fuels Association and the legendary Kenny Hauk of Hauk Designs are collaborating on a project that highlights the many benefits of using ethanol fuel blends in high-performance off-road vehicles. Fans can watch the Hauk team design and build an RFA flex-fuel Jeep Wrangler JL in a special “Hauk Machines” Amazon Prime video series airing soon. But first, the series kicks off exclusively on RFA’s Facebook page the week of August 12.

A special preview video debuts on RFA’s Facebook page and Instagram account this week as part of a larger social media campaign around this project that will continue for 14 weeks. This and other video content (mini-episodes) from this social media program will be used afterward on Amazon Prime as part of the much more comprehensive “Hauk Machines” second season.

During this season of “Hauk Machines,” Kenny Hauk and his crew are building two one-of-a-kind vehicles for the popular annual SEMA Show that will take place in November in Las Vegas, including the special Wrangler for RFA.

"Our goal was to build the most powerful JL Wrangler ever built that not only functions on road and off, but looks good while doing it,” Hauk said. “We have found E85 to be an outstanding fuel option that gives us the power and performance we have been looking for in an economical package.”

The project is part of RFA’s ongoing work to stimulate positive discussions about ethanol and engage with groups who have historically expressed reservations about the use of higher ethanol blends. The SEMA Show is the premier automotive specialty products trade event in the world; last year’s show drew more than 70,000 domestic and international buyers.

Another element in this work, for example, is RFA’s ongoing support for the Crappie Masters Tournament Trail professional fishing series, to spotlight the safety and efficiency of ethanol in boating.

“These projects are all about educating different consumer groups in a fun and innovative way,” said RFA Vice President for Industry Relations Robert White. “At RFA, we want to push the boundaries to show the potential of ethanol as a fuel for a wide variety of vehicles and demographics, especially when special interests tell us it can’t be done. Ethanol is a high-powered fuel that is perfectly suited for off-roading. It also helps keep our air and water clean, something important to off-road enthusiasts and conservationists. Kenny Hauk is the perfect person to help us tell this story and educate off-roaders globally.”

In a similar project last year, RFA worked with motorcycle designer Paul Teutul Jr., one of the stars of the reality television series “American Chopper” on the Discovery Channel. A 2018 collaboration between RFA and Teutul led to an E85 motorcycle that was featured on “American Chopper” in a project to show that ethanol works well in motorcycles—even up to 85% ethanol when appropriate adjustments are made. That bike has been used to promote ethanol at numerous events and will be once again in the spotlight this summer at the world-famous Sturgis Motorcycle Rally, where RFA has had a presence for more than a decade.



Record High Red Meat and Pork Production in June

Commercial red meat production for the United States totaled 4.37 billion pounds in June, up 1 percent from the 4.33 billion pounds produced in June 2018.

By State                (mil. lbs.  -  % June '18)
Nebraska ........:       671.4            100      
Iowa ...............:       668.3            116      
Kansas ............:       489.9             95      

Beef production, at 2.22 billion pounds, was 3 percent below the previous year. Cattle slaughter totaled 2.80 million head, down 3 percent from June 2018. The average live weight was down 8 pounds from the previous year, at 1,313 pounds.

Veal production totaled 5.7 million pounds, 2 percent below June a year ago. Calf slaughter totaled 44,400 head, down 2 percent from June 2018. The average live weight was unchanged from last year, at 223 pounds.

Pork production totaled 2.13 billion pounds, up 6 percent from the previous year. Hog slaughter totaled 9.99 million head, up 4 percent from June 2018. The average live weight was up 5 pounds from the previous year, at 285 pounds.

Lamb and mutton production, at 11.4 million pounds, was down 8 percent from June 2018. Sheep slaughter totaled 175,300 head, 3 percent below last year. The average live weight was 130 pounds, down 7 pounds from June a year ago.

January to June 2019 commercial red meat production was 26.8 billion pounds, up 2 percent from 2018. Accumulated beef production was up slightly from last year, veal was down 1 percent, pork was up 4 percent from last year, and lamb and mutton production was down 1 percent.



Hard Red Spring Wheat Average Yield Pegged at 43.1 BPA

The 2019 Wheat Quality Council's Hard Red Spring Wheat and Durum Tour ended Thursday with an overall average spring wheat yield of 43.1 bushels per acre (bpa), up from 41.1 bpa last year, but still below the five-year average of 44.6 bpa.

This year, the tour's 62 crop scouts stopped at 356 spring wheat fields around North Dakota, compared to 325 fields last year. The tour also scouted 15 durum wheat fields, and found an average yield of 32 bpa, down from 17 fields averaging 39.3 bpa last year and a five-year average of 40 bpa.

Scouts reported that harvest is about three weeks out, with most fields in the late flowering stage. However, some scouts noted that fields north of Highway 66 in the Crystal, North Dakota, region may be ready for harvest in just two weeks. Farmers in that area planted in late April, and scouts reported that yield potential there ranged from a high of 52.8 to a low of 32.7 bushels per acre.

This tour brought together people from across the wheat industry, including millers, bakers, grain marketers, traders and wheat industry groups from throughout the United States and internationally.



USDA Announces Details of Support Package for Farmers

U.S. Secretary of Agriculture Sonny Perdue today announced further details of the $16 billion package aimed at supporting American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals.

In May, President Trump directed Secretary Perdue to craft a relief strategy in line with the estimated impacts of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions. The Market Facilitation Program (MFP), Food Purchase and Distribution Program (FPDP), and Agricultural Trade Promotion Program (ATP) will assist agricultural producers while President Trump works to address long-standing market access barriers.

“China and other nations have not played by the rules for a long time, and President Trump is the first President to stand up to them and send a clear message that the United States will no longer tolerate unfair trade practices,” Secretary Perdue said. “The details we announced today ensure farmers will not stand alone in facing unjustified retaliatory tariffs while President Trump continues working to solidify better and stronger trade deals around the globe.

“Our team at USDA reflected on what worked well and gathered feedback on last year’s program to make this one even stronger and more effective for farmers. Our farmers work hard, are the most productive in the world, and we aim to match their enthusiasm and patriotism as we support them,” Secretary Perdue added.
 
Background:
American farmers have dealt with unjustified retaliatory tariffs and decades of non-tariff trade disruptions, which have curtailed U.S. exports to China and other nations. Trade damages from such retaliation and market distortions have impacted a host of U.S. commodities. High tariffs disrupt normal marketing patterns, raising costs by forcing commodities to find new markets. Additionally, American goods shipped to China have been slowed from reaching market by unusually strict or cumbersome entry procedures, which affect the quality and marketability of perishable crops. These boost marketing costs and unfairly affect our producers. USDA is using a variety of programs to support American farmers, ranchers, and producers.
 
Details of USDA’s Market Facilitation Program (MFP)
MFP signup at local FSA offices will run from Monday, July 29 through Friday, December 6, 2019.

Payments will be made by the Farm Service Agency (FSA) under the authority of the Commodity Credit Corporation (CCC) Charter Act to producers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton, and wheat. MFP assistance for those non-specialty crops is based on a single county payment rate multiplied by a farm’s total plantings of MFP-eligible crops in aggregate in 2019. Those per-acre payments are not dependent on which of those crops are planted in 2019. A producer’s total payment-eligible plantings cannot exceed total 2018 plantings. County payment rates range from $15 to $150 per acre, depending on the impact of unjustified trade retaliation in that county.

Dairy producers who were in business as of June 1, 2019, will receive a per hundredweight payment on production history, and hog producers will receive a payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.
MFP payments will also be made to producers of almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts. Each specialty crop will receive a payment based on 2019 acres of fruit or nut bearing plants, or in the case of ginseng, based on harvested acres in 2019.

Acreage of non-specialty crops and cover crops must be planted by August 1, 2019 to be considered eligible for MFP payments.

The MFP rule and a related Notice of Funding Availability will be published in the Federal Register on July 29, 2019, when signup begins at local FSA offices. Per-acre non-specialty crop county payment rates, specialty crop payment rates, and livestock payment rates are all currently available on farmers.gov.

MFP payments will be made in up-to three tranches, with the second and third tranches evaluated as market conditions and trade opportunities dictate. If conditions warrant, the second and third tranches will be made in November and early January, respectively. The first tranche will be comprised of the higher of either 50 percent of a producer’s calculated payment or $15 per acre, which may reduce potential payments to be made in tranches two or three. USDA will begin making first tranche payments in mid-to-late August.

MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments are also limited to a combined $250,000 for dairy and hog producers and a combined $250,000 for specialty crop producers. However, no applicant can receive more than $500,000. Eligible applicants must also have an average adjusted gross income (AGI) for tax years 2014, 2015, and 2016 of less than $900,000 or, 75 percent of the person’s or legal entity’s average AGI for tax years 2014, 2015, and 2016 must have been derived from farming and ranching. Applicants must also comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.

Many producers were affected by natural disasters this spring, such as flooding, that kept them out of the field for extended periods of time. Producers who filed a prevented planting claim and planted an FSA-certified cover crop, with the potential to be harvested qualify for a $15 per acre payment. Acres that were never planted in 2019 are not eligible for an MFP payment.

In June, H.R. 2157, the Additional Supplemental Appropriations for Disaster Relief Act of 2019 was signed into law by President Trump, requiring a change to the first round of MFP assistance provided in 2018. Producers previously deemed ineligible for MFP in 2018 because they had an average AGI level higher than $900,000 may now be eligible for 2018 MFP benefits. Those producers must be able to verify 75 percent or more of their average AGI was derived from farming and ranching to qualify. This supplemental MFP signup period will run parallel to the 2019 MFP signup, from July 29 through December 6, 2019.

For more information on the MFP, visit www.farmers.gov/mfp or contact your local FSA office, which can be found at www.farmers.gov.

Details of USDA’s Food Purchase and Distribution Program (FPDP)
Additionally, CCC Charter Act authority will be used to implement an up to $1.4 billion FPDP through the Agricultural Marketing Service (AMS) to purchase surplus commodities affected by trade retaliation such as fruits, vegetables, some processed foods, beef, pork, lamb, poultry, and milk for distribution by the Food and Nutrition Service (FNS) to food banks, schools, and other outlets serving low-income individuals.

Purchasing:
AMS will buy affected products in four phases, starting after October 1, 2019 with deliveries beginning in January 2020. The products purchased can be adjusted between phases to accommodate changes due to: growing conditions; product availability; market conditions; trade negotiation status; and program capacity. AMS will purchase known commodities first. By purchasing in phases, procurements for commodities that have been sourced in the past can be purchased more quickly and included in the first phase.
 
Vendor Outreach:
To expand the AMS vendor pool and the ability to purchase new and existing products, AMS will ramp up its vendor outreach and registration efforts. AMS has also developed flyers on how the process works and how to become a vendor for distribution to industry groups and interested parties. Additionally, AMS will continue to host a series of free webinars describing the steps required to become a vendor. Stakeholders will have the opportunity to submit questions to be answered during the webinar. Recorded webinars are available to review by potential vendors, and staff will host periodic Question and Answer teleconferences to better explain the process.
 
Product Specifications:
AMS maintains purchase specifications for a variety of commodities, which ensure recipients receive the high-quality product they expect. AMS in collaboration with FNS regularly develops and revises specifications for new and enhanced products based on program requirements and requests. AMS will be prioritizing the development of those products impacted by unjustified retaliation. AMS will also work with industry groups to identify varieties and grades sold to China and other markets imposing retaliatory tariffs, such as premium apples, oranges, pears, and other products. AMS will develop or revise specifications to facilitate the purchase of these premium varieties in forms that meet the needs of FNS nutrition assistance programs.
 
Outlets:
The products discussed in this plan will be distributed to States for use in the network of food banks and food pantries that participate in The Emergency Feeding Assistance Program (TEFAP), elderly feeding programs such as the Commodity Supplemental Foods Program (CSFP), and tribes that operate the Food Distribution Program on Indian Reservations (FDPIR).

These outlets are in addition to child nutrition programs such as the National School Lunch Program, which may also benefit from these purchases.

Additionally, the rule provides flexibility for FNS to explore new channels of non-profit distribution of product, should the availability of distribution through traditional channels prove to be insufficient. FNS will offer products through traditional channels prior to consideration of new outlets.
 
Distribution:
AMS has coordinated with FNS, industry representatives, and other agency partners to determine necessary logistics for the purchase and distribution of each commodity, including trucking, inspection and audit requirements, and agency staffing.
 
Details of USDA’s Agricultural Trade Promotion Program (ATP)
USDA’s Foreign Agricultural Service (FAS) will administer the ATP under authorities of the CCC. The ATP will provide cost-share assistance to eligible U.S. organizations for activities such as consumer advertising, public relations, point-of-sale demonstrations, participation in trade fairs and exhibits, market research, and technical assistance. Last week, USDA awarded $100 million to 48 organizations through the ATP to help U.S. farmers and ranchers identify and access new export markets.

The 48 recipients are among the cooperator organizations that applied for $200 million in ATP funds in 2018 that were awarded earlier this year. As part of a new round of support for farmers impacted by unjustified retaliation and trade disruption, those groups had the opportunity to be considered for additional support for their work to boost exports for U.S. agriculture, food, fish, and forestry products.

Already, since the $200 million in assistance was announced in January, U.S. exporters have had significant success, including a trade mission to Pakistan that generated $10 million in projected 2019 sales of pulse crops, a new marketing program for Alaska seafood that led to more than $4 million in sales of salmon to Vietnam and Thailand, and a comprehensive marketing effort by the U.S. soybean industry that has increased exposure in more than 50 international markets. These funds will continue to generate sales and business for U.S. producers and exporters many times over as promotional activity continues for the next couple of years.



NCGA Welcomes Progress on MFP, Looks Forward to Improved Program

National Corn Growers Association (NCGA) President Lynn Chrisp today made the following statement on the U.S. Department of Agriculture’s (USDA) release of county payment rates for the Market Facilitation Program (MFP).

“It’s no secret that farmers are facing difficult decisions amid wet spring weather, trade disputes and tariffs, and demand destruction in the ethanol market. While NCGA’s focus remains markets, we welcome USDA’s quick rollout of MFP 2.0 and the Department’s creative efforts to reorient MFP to better reflect market impacts and support American farmers. We look forward to learning more about how MFP will work for corn farmers.” 

Following President Trump’s announcement that the Administration would be pursuing a second round of trade aid, NCGA put forward recommendations that would provide both short-term assistance and support market access for farmers. NCGA continues to encourage the Administration to take additional actions to open markets and provide more certainty to corn farmers, including stopping RFS waivers to big oil refiners and restoring waived ethanol gallons and resolving trade disputes and tariffs.



Soy Growers Appreciate Efforts to Offset Ongoing Tariff Damages Administration Shares MFP Payment Details

The United States Department of Agriculture (USDA) released details this morning of the 2019 Market Facilitation Program (MFP) payments announced by the Administration in May. MPF will provide up to $14.5 billion to producers, including soybean farmers, in up to three tranches starting with a first round of payments this August.

Payment rates vary by county from $15 to $150 per acre based on USDA’s calculated damages from tariffs in each individual county affected – most in the $50 to $75 range per acre, according to USDA. That single-county rate will be multiplied by a farm’s total planted acreage for all MFP-eligible crops in aggregate for 2019, not to exceed total 2018 plantings.

Davie Stephens, president of the American Soybean Association (ASA) and soybean grower from Clinton, Kentucky, said, “The county rate for farmers in areas with a higher percentage of crops suffering from negative trade impacts will receive a higher offset for the damages we have seen because of the tariffs. We appreciate the Administration’s effort to determine how the payments will work and hope our soybean growers—no matter where their farms are and what is planted there—feel some relief from this assistance.”

ASA is glad that the Administration continues to recognize the ongoing struggle of soybean farmers caught in the middle of the trade war with China. Soybean growers were also pleased with the Agricultural Trade Promotion (ATP) funding announced by USDA last Friday, as those funds granted to the soybean industry will support new market development. Yet, ASA continues to ask for a quick and positive resolution to the current tariff on U.S. beans going to China that has disrupted the market.

Sign-up for farmers with eligible crops begins Monday, July 29, with those who are first to sign up expected to receive an initial payment equal to 50% of what they are eligible for in mid to late August. Second and third payments, each equal to 25% of the total qualifying payment, are slated for November 2019 and January 2020 contingent upon market conditions and trade opportunities. Producers can continue to sign up through December 6, 2019.

Farmers who earn 75% or more of their income from agriculture will be eligible for up to the $250,000 MFP payment limit and retroactively eligible for up to the $125,000 payment limit for the 2018 program. MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity and a combined $250,000 for hog or dairy farmers per person or legal entity; No applicant can receive more than $500,000 total.



NAWG Responds to USDA's Announcement on Another Round of MFP Payments for Farmers

On July 25, 2019, the U.S. Department of Agriculture (USDA) announced details of its latest $16 billion in aid to offset trade damages, including another round of market facilitation program (MFP) payments of $14.5 billion for farmers who are being impacted by the current trade war with China. Payment rates are set at a county level rather than commodity rate.

“NAWG appreciates the Administration recognizing the impact the current trade war with China is having on farmers,” stated NAWG President and Lavon, TX farmer Ben Scholz. “The MFP payments will provide necessary assistance to growers impacted by low prices resulting in part from tariffs.  However, this is a band-aid when we really need a long-term fix. NAWG understands holding China accountable for its WTO violations and unfair trade practices but a trade war is not the solution especially when farmers are the casualties.”

Prior to the release of details of MFP, NAWG sent a letter to USDA Secretary Sonny Perdue outlining concerns to be addressed in a final program. Additionally, NAWG met with the Office of Management of Budget (OMB) and USDA officials to discuss its concerns including those raised around ensuring fall 2018-seeded winter wheat would be eligible, fallow rotations, and new and beginning farmers. Specifically, NAWG asked that growers not be penalized by the limit of 2018 harvested acres since the MFP proposal uses a farmer’s 2019 planted acres capped at their 2018 harvested acres.  

“We continue to urge the Administration to quickly resolve the ongoing trade dispute with China and to negotiate new trade agreements, and Congress to act quickly on USMCA.”



NPPC Statement on Trade Aid II

The U.S. Department of Agriculture today announced details of its second program providing trade retaliation relief to American farmers. Eligible U.S. pork producers will receive $11 per head based on inventory between April 1-May 15, 2019. The USDA also announced it will make pork purchases of $208 million to support its programs for the food insecure. National Pork Producers Council President David Herring, a producer from Lillington, N.C., issued the following statement:

"U.S. pork producers are highly dependent on export markets, shipping more than 25 percent of production to foreign markets. We are grateful to the Trump administration for providing partial relief as hog farmers have incurred significant losses due to trade disputes that have lingered for more than a year.

"U.S. pork is the most affordable, highest quality and safest in the world and our top objective remains the same: We seek the chance to compete on a level playing field in markets around the globe. Our top priorities are an end to the trade dispute with China, where retaliatory tariffs are preventing U.S. pork from fully capitalizing on a historic sales opportunity created by the outbreak of African swine fever in the world's largest pork-consuming nation, and a trade agreement with Japan, where U.S. pork is losing market share due to trade agreements Japan has recently formed with the EU and other international competitors."

USDA's second trade retaliation relief package is valued at $16 billion, with $14.5 billion dedicated to producer payments, $1.4 billion for commodity purchases and $100 million through its Agricultural Trade Promotion Program to help U.S. farmers and ranchers identify and access new export markets. Sign up for the program begins Monday, July 29 and ends Dec. 6, 2019. For more information, visit: www.farmers.gov/manage/mfp.



NMPF Statement on USDA Trade-Mitigation Aid Announcement

In response to the USDA’s outline of its planned trade-mitigation assistance to farmers, NMPF President and CEO Jim Mulhern offered the following statement:

“We appreciate the efforts of USDA and the White House to assist farmers who have suffered significant losses due to retaliatory tariffs. Dairy producers have so far lost more than $2.3 billion in revenues since tariff escalation began in earnest one year ago. USDA’s new approach raises the level of aid to dairy farmers from last year’s program, a step in the right direction. We also urge the Department to revise the outdated production history information used to calculate payments, which lessens the effectiveness of the program.

“Today’s announcement underscores that dairy farmers need to rely on trade, not aid, to prosper in a global marketplace. We will continue to work with USDA to help dairy farmers expand exports and increase consumption of dairy products through nutrition programs. Resolving the current trade impasse with China and aggressively expanding ties with other trading partners also is essential to make these aid packages unnecessary. We are also working with the administration and Congress to pass USMCA, which would immediately create new opportunities for U.S. dairy.”

 

Farm Bureau Welcomes Trade Assistance, Urges Return to Open Markets
American Farm Bureau Federation President Zippy Duvall

“We greatly appreciate President Trump’s concern for America’s farmers and ranchers in these difficult economic times, and we are grateful for this continued trade assistance to help our farmers and ranchers stay in business and continue feeding our nation. We look forward to reviewing the details of this new $16 billion aid package and its specific impact on each sector of agriculture. 

“These are difficult times for agriculture, and the longer these trade wars continue, the deeper the impact on farm country. Farmers are being hit with tariffs on top of already-challenging economic conditions from severe weather events, low commodity prices, lack of available labor and a host of other impacts. It’s the perfect storm for agriculture, and these continuing trade wars are adding to the increasing financial burden on our farmers and ranchers.

“While we are grateful for the continuing support for American agriculture from President Trump and Secretary Perdue, America’s farmers ultimately want trade more than aid. It is critically important to restore agricultural markets and mutually beneficial relationships with our trading partners around the world.

“We are hopeful that trade negotiations with China will quickly lead to a resolution of trade disputes and that the administration will make important progress in negotiations with Japan and the European Union. At the moment, all eyes are on winning congressional approval for the U.S.-Mexico-Canada Agreement.”



USDA Releases Details for Market Facilitation Program

Two months after announcing its intentions to provide a new package to assist family farmers and ranchers coping with trade damages, the U.S. Department of Agriculture (USDA) today released finalized details about the timing and calculation of direct payments to producers through the Market Facilitation Program (MFP). The agency has earmarked up to $14.5 billion for the program to be distributed in three separate tranches. Eligible producers can submit applications for the first tranche beginning next Monday, July 29, through December 6, 2019, and payments will be sent out starting in mid- to late August.

Most commodity grain producers will be compensated based on a single county rate ranging from $15 to $150 per planted acre. For the first round of payments, they will receive a minimum of $15 per acre and up to 50% of the county rate. In contrast, dairy producers will receive 20 cents per hundredweight based on historical production. Additional relief for hog and specialty crop producers will be available as well.

Given the significant difficulties that ongoing trade uncertainty has caused, National Farmers Union (NFU) is relieved that farmers will be receiving much-needed assistance. NFU President Roger Johnson released the following statement in response to USDA’s announcement:

“Long before this trade war even started, family farmers and ranchers were struggling to make ends meet. Chronic oversupply and slumping commodity prices have beleaguered the agricultural economy for six consecutive years, putting most operations in the red. But the unstable markets and rapidly fluctuating prices caused by this administration’s trade policies has made matters even worse. Many farmers didn’t even know what to plant this last spring because they couldn’t begin to anticipate what might be profitable come harvest.

“National Farmers Union appreciates the USDA’s ongoing efforts to support family farmers during this difficult time. However, we harbor some concerns about disparities in payments from county to county, which could put some farmers at a financial disadvantage. Additionally, we are disappointed that the plan does not include incentives to reduce production, which could help alleviate the chronic challenges of excess supply and depressed prices.

“This assistance is desperately needed, but the ad-hoc rollout and convoluted structure of these programs has caused significant confusion among producers. Until more predictable, longer-term solutions are made available, that sense of confusion and insecurity will likely persist. In the future, we urge the administration to work more closely with Congress to build on the existing safety net and provide certainty and stability in farm country.”



ACE calls on EPA to rely on the GREET model as it considers future RFS volumes

American Coalition for Ethanol (ACE) CEO Brian Jennings highlighted the important role corn ethanol could have in further reducing greenhouse gas (GHG) emissions if properly valued under the Renewable Fuel Standard (RFS) in a letter to Environmental Protection Agency (EPA) Administrator Andrew Wheeler today, informing the agency of a recently published meta-analysis showing that corn stover retention results in significant soil carbon sequestration, and if taken into account by lifecycle modeling, reduces the GHG footprint of corn ethanol far below EPA’s current estimate.

This data, published in a recent study titled “A global meta-analysis of soil organic carbon response to corn stover removal,” goes on to say changes in soil carbon stocks can alter lifecycle GHG emissions for corn-based ethanol.

“EPA relies upon lifecycle accounting to quantify GHG emissions under the RFS, however, your model is nearly a decade old and fails to include the continuing advancements in this science documented by the Argonne National Laboratory and the data represented in the meta-analysis,” Jennings writes. “EPA’s antiquated analysis is an impediment to more low carbon biofuel use hurting both rural communities and the environment.”

“As you work on the proposed rule to “reset” RFS volumes for 2021 and 2022, ACE urges you to take this timely meta-analysis into consideration to foster more ethanol blending,” the letter continues. “Specifically, we encourage EPA to use the “reset” as an opportunity to increase undifferentiated renewable fuel volume beyond 15 billion gallons for 2021 and 2022 by reallocating the 2.61 billion gallons waived so far through so-called “hardship” exemptions for small refineries and restoring 500 million gallons to the 2016 RFS compliance year as ordered by the U.S. Court of Appeals.”

Additionally, the letter calls on EPA to adopt the latest Greenhouse gas and Regulated Emissions and Energy use in Transportation (GREET) model, developed by DoE’s Argonne National Lab nearly three decades ago, as is also recommended in ACE’s white paper “The Case for Properly Valuing the Low Carbon Benefits of Corn Ethanol.” “Unlike Argonne’s GREET model, EPA’s lifecycle model has not been updated since your original (2010) corn ethanol assessment,” the letter states. “Today the GREET model shows corn ethanol has nearly 50 percent lower GHG emissions than gasoline.”



Irish Swine To Dine On U.S. DDGS Thanks To USGC Engagement

An increase in inclusion rates of U.S. DDGS from zero to 15 percent by an Irish feed mill will add 75,000 metric tons in additional demand annually, valued at $17.2 million.

A leading feed mill in Ireland has upped its inclusion rate of U.S. dried distiller’s grains with solubles (DDGS) thanks to the U.S. Grains Council’s (USGC’s) work to promote the benefits of the feed ingredient in swine diets, adding 75,000 metric tons in additional demand annually, valued at $17.2 million.

Ireland is a consistent buyer of U.S. DDGS, purchasing just under 400,000 tons in 2018, valued at $91 million. Experienced buyers and end-users use U.S. DDGS to feed Ireland’s ruminants, including the large dairy and sheep industries. More recently, the Council has worked with Irish traders and end-users, educating them on the benefits of including more DDGS in swine diets.

To further these efforts, the Council engaged the Irish feed industry in March 2019 to assess the DDGS market and potential effects of Brexit. The Council discovered that while DDGS inclusion rates in ruminant animals were on par with U.S. standards, inclusion rates in monogastric (i.e. swine and poultry) diets lagged behind.

This assessment led to direct work with the swine industry to answer questions related to nutrition and encourage inclusion in rations. As a result, the large feed mill, which produces 500,000 tons of pig feed annually, decided to change its feed formula, increasing the DDGS inclusion rate from zero to 15 percent.

“As an industry leader, this feed mill’s influence is considerable, which could lead to increased inclusion rates by other mills - a domino effect quite common around the world,” said Reece Cannady, USGC manager of global trade. “As other feedmills switch, potential DDGS exports for commercial swine feed alone in Ireland could reach 200,000 tons, valued at $46 million, roughly a 50 percent increase over existing DDGS exports to the island.”

The Council will continue to work with the Irish swine feed industry to expand DDGS use, including conducting a feeding trial from August to September 2019 on a 1,000-head swine farm.

“The farm is owned by a group that sells raw materials to other producers,” Cannady said. “If they can convince home mixers to switch to DDGS, the Council could help facilitate another 100,000 tons of DDGS exports to Ireland.”



Pioneer Petitions APHIS to Deregulate GE Corn

The U.S. Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS) is inviting public comment on a petition from Pioneer Hi-Bred International, Inc., seeking deregulation of a corn variety genetically engineered (GE) for enhanced yield potential and resistance to glufosinate-ammonium herbicide. The petition is available for public review and comment for 60 days.

APHIS is interested in receiving comments regarding potential environmental and interrelated economic impacts to assist in our assessment of the petition as it relates to the National Environmental Policy Act (NEPA). The public comments received, along with the best available scientific documents, will assist APHIS in determining the appropriate environmental documents to prepare in accordance with our petition process to make a fully informed decision on the regulatory status of this GE corn variety.

Members of the public can submit comments through Sept. 23.

For more information and to submit a public comment, please visit APHIS' Biotechnology Regulatory Services News and Information web page at .https://bit.ly/2JQC5kA.

Wednesday July 24 Ag News

Farm Service Agency Reminds Producers to Report Livestock Losses Due to the Heat

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) County Executive Director Sarah Beck today is reminding producers in Cuming County who suffered livestock losses due to the recent extreme heat that financial assistance may be available through the Livestock Indemnity Program (LIP).

“The Livestock Indemnity Program provides producers with a vital safety net to help them overcome the financial impact of extreme or abnormal weather,” said Beck. “The extreme heat in the past week has had a significant impact on some livestock producers, even with good management practices in place. We encourage folks to reach out to our county FSA office.”

To apply for LIP benefits, a livestock producer must file a notice of loss with FSA within 30 calendar days of when the loss of livestock is first apparent.

LIP compensates livestock owners and contract growers for livestock death losses in excess of normal mortality due to an adverse weather event, including hurricanes, floods, blizzards, disease, wildfires, extreme heat and extreme cold. The payment rate is based on 75 percent of the average fair market value of the livestock. Livestock producers must provide evidence that the death of livestock was due to an eligible adverse weather event or loss condition. In addition, livestock producers should bring supporting evidence, including documentation of the number and kind of livestock that died, photographs or video records to document the loss, purchase records, veterinarian records, production records and other similar documents.

To contact the Cuming County FSA office, call (402) 372-2451. To learn more about LIP, visit www.farmers.gov.



NE Extension Hosts BQA+T meetings

Beef Quality Assurance certification concerns itself with practices throughout the production process, mainly dealing with animal health, food safety and product quality.  No matter what the segment, from the cow-calf producer to the dinner plate, each step affects quality as well as the eating satisfaction of consumer.  BQA works with veterinarians and extension educators to conduct trainings for feedlots, livestock auction markets, anybody who handles cattle frequently.  We train people and keep them updated on latest animal health issues, products, and practices.

UNL Extension Educator Rob Eirich is the director of beef quality assurance (BQA) for the state of Nebraska.  The position is a partnership between University of Nebraska-Lincoln, Nebraska Cattlemen, and the Nebraska Beef Council.

Upcoming BQA Trainings/Certification (All Times Are Local Time Zone)
    August 6 - Fordyce - Parish Hall-St John The Baptist - BQA 4:00-6:00 p.m., Meal 6:00, BQA Transportation 6:30-8:30 p.m.
    August 7 - Albion - Events Center-Fairgrounds - BQA 4:00-6:00 p.m., BQA Transportation 6:30-8:30 p.m.
    August 26 - Broken Bow - 4-H Building, Fairgrounds - BQA 4:00-6:00 p.m., BQA Transportation 6:30-8:30 p.m.
    August 29 - Bridgeport - TBA - BQA 4:00-6:00 p.m.

More BQA Trainings are being scheduled and posted ASAP to bqa.unl.edu.  Call Rob Eirich for more information at 308-632-1230, Nebraska Extension Office, or Local Veterinarians. 



AFAN Announces Hiring of New Livestock Programming Coordinator

AFAN has announced the hiring of Rylee Stoltz of Bassett, Neb., as its new Livestock Programming Coordinator. Her appointment was effective July 8.

AFAN (The Alliance for the Future of Agriculture in Nebraska) is a non-profit organization formed by leading agricultural membership groups in Nebraska to encourage the development of environmentally responsible and economically viable livestock production in the state.
Stoltz’s responsibilities at AFAN include creating and managing programming events for producers and communities and assisting with communications activities to enhance understanding about the importance of the agriculture industry in Nebraska.

She is a graduate of the University of Nebraska-Lincoln with a Bachelor of Science in Agribusiness focusing on business and finance. She also holds the Associate of Science degree from Northeast Community College, Norfolk. Until joining AFAN, she was a loan administrative assistant at Sandhills State Bank in Bassett. While in Bassett, her community activities included founder of the Rock County Growth, Inc., Youth Engagement Committee and chair of the Rock County Growth, Inc. Housing Board.

“Rylee is a most welcome addition to our team,” said AFAN Executive Director Steve Martin.   “Her skills and experience will be used to expand AFAN’s outreach efforts by helping create and carry out programming services on behalf of livestock producers and by getting the word out about how critical agriculture and livestock is to Nebraska’s economy.”



NEBRASKA GRAZING CONFERENCE VENUE CHANGED
The venue for the Aug. 12-14 Nebraska Grazing Conference has changed due to recent flooding in Kearney. The Conference will now be held at the Exhibition Building at the Buffalo County Fairgrounds, 3807 Avenue N, in Kearney, near the Buffalo County Extension Offices.

For a list of hotels with contracted conference rates, refer to the Nebraska Grazing Conference website at https://grassland.unl.edu/nebraska-grazing-conference. Hotel reservations must be made by Aug. 1.

The 2019 Nebraska Grazing Conference includes a pre-conference plant identification tour on Aug. 12. Presenters on Aug. 13-14 will address grazinglands management, winter grazing and rangeland health.

Conference registrations should be made by July 31 at https://grassland.unl.edu/nebraska-grazing-conference. For assistance with online conference registration, call 402-472-8747.



HAYING WET MEADOWS THAT ARE TOO WET
Bruce Anderson, NE Extension Forage Specialist

The extra rain received in central and western Nebraska this year has been mostly welcome.  But it has raised havoc with making hay, especially on wet meadows.

Wet meadows are a great resource.  Their natural subirrigation enables them to reliably grow many of the plants cut for winter hay for many ranches.

This year, however, many of these meadows have had too much of a good thing – rain.  Not only have frequent rain showers made it difficult to put up the hay, many meadows are so wet it’s been impossible to even get in to cut the hay.

So what do you do?  I suppose you can continue to wait until the ground dries and firms up enough to drive haying equipment over it.  But the quality of this late cut hay isn’t going to be very good and the cost of putting it up will be high.  And for many of you, much of your summer hay crew may already be back to school.

Maybe a better idea would be to winter graze the meadows, either as standing grass or by windrow grazing.  You might need to build some temporary fence to efficiently strip graze as well as figure out how cattle will be watered, but there are several advantages to this approach.  First, it saves you the time and expense of making and feeding hay.  Also, it reduces the risk of damaging the meadow with heavy equipment running over it when it’s too soft.  Cattle won’t cause damage if you graze only when the ground is firm or frozen.  And finally, research on both meadows and uplands has shown that dry cows do well when winter grazing, often needing just a little protein supplement to assure good fiber digestion and healthy calves.

With all these advantages, I wouldn’t be surprised if some of you ranchers who try it decide to do at least some of it on a regular basis.

SUMMER HEAT AND FORAGE GROWTH
Summer heat hit us hard this past week.  How do these high temperatures affect different types of forage plants?

When it suddenly turns ‘hooey boy’ hot – you know, 90 plus degrees and humidity so thick you can almost see it – cool-season plants suffer along with you and me.  Alfalfa and clovers, bromegrass, orchardgrass, fescues, needlegrasses, and wheatgrasses all struggle during hot weather.

If you’re old enough, do you remember – before air conditioning – how drained you used to feel after spending a night when the temperature never dropped below 80?  The same thing happens to cool-season forages, resulting in very slow growth, lower forage quality as plants burn up the good nutrients, and limited recovery of root reserves after defoliation.  And if it also is dry these conditions can even become deadly.

Warm-season grasses are just the opposite.  Millet, sudangrass, sorghums, and our native bluestems, gramas, switchgrass, and other warm-season grasses thrive when the temperature is around 90 degrees.  Their metabolism runs at peak efficiency when it is hot so they grow rapidly while maintaining reasonable forage quality and good root growth.

Of course, this assumes these plants have adequate moisture.  Once they dry up, these grasses will overheat too, just like cool-season grasses do at lower temperatures.

As you graze or hay, be aware of the stress weather is putting on your forage.  When it’s too hot, allow plants to recover for a longer time before next use.  And don’t expect high feed values or good animal gains when the nutritional goodies are burned right out of the plants.

Proper expectations and management adjustments can limit the stress from stressful weather.



USDA to Pay at Least $15/Acre to Farmers Hurt by Trade War

The U.S. government will pay a minimum of $15 per acre to farmers hurt by President Trump's trade war with China under an aid package to be unveiled before the end of the week, Agriculture Secretary Sonny Perdue said on Tuesday.

"We'll have information for you before the week ends," Perdue told reporters when asked about the aid, which is planned to total about $16 billion.

Reuters report that farmers, a key Trump constituency, have been among the hardest hit in the trade war between the world's two largest economies. Soybeans are the most valuable U.S. farm export, and shipments to China dropped to a 16-year low in 2018.

A new aid program would be the second round of assistance for farmers, after the Department of Agriculture's $12 billion plan last year to compensate for lower prices for farm goods and lost sales stemming from trade disputes with China and other nations.

The USDA has redesigned last year's aid program based on feedback. The new package will have a single payment rate per county, calculated by the damages in that area, instead of a rate for every commodity across the nation.

Perdue said the minimal payment would be $15 an acre. "We're anticipating right now three tranches; probably 50 percent ... or minimum there of $15 an acre initially," he said, adding the second and third tranches would be dependant on market conditions, Reuters reports.

President Trump and Chinese President Xi Jinping agreed at last month's G20 summit in Osaka, Japan, to restart trade talks that stalled in May. The president said at the time he would not impose new tariffs and U.S. officials said China agreed to make agricultural purchases. But Trump said on July 11 that China was not living up to promises to buy U.S. farm goods.



Weekly Ethanol Production for 7/19/2019

According to EIA data analyzed by the Renewable Fuels Association for the week ending July 19, ethanol production averaged 1.039 million barrels per day (b/d)— equivalent to 43.64 million gallons daily. Output was down 27,000 b/d (-2.5%) from the previous week for an 11-week low, and 35,000 b/d lower (-3.3%) than a year ago. The four-week average ethanol production rate decreased 0.8% to 1.058 million b/d, equivalent to an annualized rate of 16.22 billion gallons (bg) and the smallest level since May.

There were zero ethanol imports recorded after logging volumes for two consecutive weeks. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of May 2019.)

The volume of gasoline supplied to the market jumped 5.0% to 9.673 million b/d (406.3 million gallons per day, or 148.29 bg annualized). Refiner/blender net inputs of ethanol increased 3.5% to 942,000 b/d, equivalent to 14.44 bg annualized.

Expressed as a percentage of daily gasoline demand, daily ethanol production declined to 10.74%.



DOE Response to Sen. Grassley Shows EPA Ignored Recommendations on Small Refiner Exemptions

A recent letter from Secretary of Energy Rick Perry to Sen. Chuck Grassley (R-IA) confirms that the Environmental Protection Agency (EPA) has ignored DOE recommendations regarding whether small refiners should receive exemptions from their Renewable Fuel Standard (RFS) blending obligations.

“The admissions of the DOE letter flatly contradict previous statements from EPA officials who claimed their hands were tied by DOE recommendations on small refiner exemptions,” said RFA President and CEO Geoff Cooper. “EPA has claimed it must follow DOE’s guidance on whether to grant or deny exemptions, but this letter clearly shows EPA ignored the recommendations and analysis provided by DOE. The demand destruction that has resulted from these exemptions has been real and significant. Ethanol producers and the corn farmers who supply our industry are facing some of the worst market conditions in a generation, and these small refinery bailouts are largely to blame for that. We urge President Trump and Administrator Wheeler to restore some integrity and judiciousness to the small refiner exemption program, and ensure that any exempted renewable fuel blending requirements are redistributed to non-exempt refiners.”

The DOE letter, which responds to an April inquiry from Sen. Grassley, states that EPA granted an exemption to a refinery when DOE analysis found no exemption was warranted. Further, DOE states that EPA has never granted partial exemptions--opting instead to grant full exemptions--despite the fact that in many instances DOE analysis indicated only a partial exemption may be considered.

According to the letter, “DOE is aware of one instance in which DOE’s analysis indicates that EPA consider no exemption, but the result was an EPA decision to grant an exemption to the petitioner.” EPA further acknowledges that “EPA has never granted a 50 percent exemption. EPA has…granted…(full) exemptions in the past for which the results of DOE’s analysis indicate that a 50 percent exemption may be appropriate.”

Cooper said the letter also corroborates information recently uncovered through a Freedom of Information Act request filed by RFA, in which a former EPA official warned former Administrator Scott Pruitt that granting certain exemptions “would be a clear violation of Mr. Pruitt’s oath of office.” Other information uncovered in the FOIA request shows the White House knew exemptions were being granted without any demonstration of “true economic hardship.”

Since the beginning of the Trump Administration, small refinery exemptions have increased nearly four-fold and not a single request for an exemption has been denied. EPA gave out 54 exemptions from 2016 and 2017 compliance, reducing RFS blending requirements by 2.6 billion gallons. The 2016 and 2017 exemptions led to a reduction in both the volume of ethanol consumed and the ethanol blend rate in 2018—the first annual decline in either measure of ethanol demand in at least 20 years. Another 38 exemption requests remain pending at EPA.



REG to Close Texas Biorefinery

Renewable Energy Group, Inc. announced on Wednesday the closing of its biorefinery in New Boston, Texas, due to challenging business conditions and continued federal policy uncertainty, most notably the long-lapsed federal biodiesel tax credit.

The company acquired the 15 million gallon per-year biodiesel plant near Texarkana, Texas, in October 2012 and began producing biodiesel there several months later. The facility is capable of running both high and low free fatty acid feedstocks and has truck and rail access.

"We truly appreciate all the efforts of our team and those that support our New Boston plant," said Brad Albin, vice president of manufacturing. "They significantly improved safety, demonstrated capacity, yield, quality and costs. However, these improvements could not overcome the unfavorable economics of the plant relative to our other options for ongoing focus and forward investment."

The company is currently working with plant employees on relocation opportunities within the production network.

"This closure comes today as a result of the poor economics over the last 18 months resulting in large part from the uncertainty surrounding the Biodiesel Tax Credit," said Cynthia J. Warner, REG president and CEO. "Despite significant bipartisan support, Congress' inaction on this value-added incentive has led to unsustainable market conditions."



Fertilizer Prices Continue to Hold Steady

Retail fertilizer prices tracked by DTN for the third week of July 2019 show prices continue to be mixed, but more fertilizers had slightly lower prices than higher prices compared to last month.

Five fertilizers were lower compared to the previous month with none down a significant amount, which DTN considers 5% or more. MAP had an average price of $532/ton, down less than $1; urea $430/ton, down $5; 10-34-0 $584/ton, down $2; anhydrous $585/ton, down $4; and UAN32 $317/ton, down $1.

Three fertilizers were slightly higher compared to last month, but again the move higher was fairly slight. DAP had an average price of $497/ton, up $1; potash $392/ton, up less than $1; and UAN28 $275/ton, up $5.

On a price per pound of nitrogen basis, the average urea price was at $0.47/lb.N, anhydrous $0.36/lb.N, UAN28 $0.49/lb.N and UAN32 $0.50/lb.N.

All eight of the major fertilizers are now higher compared to last year. DAP is 2% higher, MAP is 5% more expensive, 10-34-0 is 10% higher, potash is 11% more expensive, both UAN28 and UAN32 are now 14% higher, anhydrous is 16% more expensive and urea is 18% higher compared to last year.