Thursday December 19 Ag News

December Rural Mainstreet Index Rises Above Growth Neutral: Farm Land Price Index Highest Since 2013

The Creighton University Rural Mainstreet Index (RMI) for December remained above growth neutral for the fourth straight month and for the 10th time in the past 12 months, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.     

Overall: While the overall index for December fell to 50.2 from 54.2 in November, it marked the tenth time in 2019 that the index has remained above growth neutral 50.0.

“Federal agriculture crop support payments and somewhat higher grain prices have boosted the Rural Mainstreet Index above growth neutral for the month.”

“Bank CEOs, on average, expect approximately 12.4% of grain farmers to experience financial losses for 2020. However, this is down from last year at this time when bankers projected 15.3% of grain farmers to experience negative cash flows for 2019,” said Ernie Goss, PhD, Jack A. MTacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. 

Farming and ranching: The farmland and ranchland-price index soared to 52.8 from November’s weak 40.4. This is the first time since November 2013 that the index has risen above growth neutral, 50.0. 

The November farm equipment-sales index sank to 27.9 from November’s 37.5. This marks the 75th month that the reading has remained below growth neutral 50.0. 

Banking: Borrowing by farmers weakened again from December. The borrowing index declined to 50.0 from November’s 51.4. The checking-deposit index fell to a still strong 61.1 from November’s 68.1, while the index for certificates of deposit and other savings instruments slipped to 50.0 from 51.4 in November.    

This month, bankers were asked to project the level of farm loan defaults for 2020. “One of nine bank CEOs expect 2020 farm loan defaults to expand by 10% to 20%. On average bankers expect 2020 farm loan defaults to grow by approximately 4.0%.  This is down from an anticipated gain of 4.4% for 2019 recorded last December,” said Goss.

Bankers were also asked about their bank’s response to weak farm income. Almost two-thirds, or 65.7%, indicated their bank had increased collateral requirements, while 34.3% reported that their bank had rejected a higher percentage of farm loan applications.

Below are the state reports:
Nebraska: The Nebraska RMI for December sank to a regional low of 44.3 from November’s 51.0. The state’s farmland-price index sank to jumped to 52.1 from last month’s 39.3. Nebraska’s new-hiring index improved to 53.4 from November’s 48.6. Over the past 12 months rural areas in Nebraska have added jobs at a rate of 0.2% compared to a gain of 2.5% for urban areas of the state.  

Iowa: The December RMI for Iowa increased to 53.5 from November’s 52.5. Iowa’s farmland-price index soared to 52.5 from November’s 39.7. Iowa’s new-hiring index for December slumped to 48.7 from November’s 57.1. Over the past 12 months rural areas in Iowa have experienced job losses with employment growth at minus 0.2% compared to a stronger 1.1% for urban areas of the state.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.  

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Nebraska Soybean Association Celebrates 50 Years!

The Nebraska Soybean Association celebrated its 50th anniversary during the Nebraska Soybean Day and Machinery Expo Thursday in Wahoo. For 50 years, the grower members of the Nebraska Soybean Association have served as leaders, pioneers and advocates for the soy industry. The association has made invaluable contributions to not only the soybean industry, but all of agriculture.

The American Soybean Association congratulates the Nebraska Soybean Association on this milestone and is grateful for 50 years of leadership and partnership. ASA Director and past president Ron Moore from Illinois presented a commemorative plaque to Nebraska Soybean Association Vice President Doug Bartek of Wahoo on Thursday.  ASA Directors from Nebraska Dennis Fujan of Prague and Ken Boswell of Shickley were also in attendance and showed their support.



Statement by Steve Nelson, President, Regarding Sen. Ben Sasse Appointment to Senate Committee on Finance

“Majority Leader Mitch McConnell’s appointment of Ben Sasse to the Senate’s Finance Committee gives Nebraska farmers and ranchers a strong voice on arguably one of the most powerful committees in Congress. Sen. Sasse is unapologetically supportive of trade and now he’ll be fighting for agriculture from the front lines of the Committee that holds jurisdiction over trade, tariffs, and all other international commerce issues. Sen. Sasse has always made sure that Nebraska farmers and ranchers have a seat at the table, and we look forward to continuing to work with Sen. Sasse on agriculture priorities like expanding trade, lowering taxes, and affordable health care.”



Nebraska Farm Bureau Delegates Elect 5 to State Board

Delegates at the Nebraska Farm Bureau Annual Meeting and Convention in Kearney elected five members to the organization's Board of Directors.

Katie Olson was re-elected to the Nebraska Farm Bureau Board of Directors representing the North Central region in Nebraska. Olson will represent members from 14 counties including Cherry, McPherson, Logan, Thomas, Keya Paha, Boyd, Brown, Rock, Holt, Blaine, Loup, Garfield, Wheeler, and Custer counties. Olson and her husband, James, grow corn, soybeans, and raise cow/calf pairs on a ranch near Atkinson. They are members of Holt County Farm Bureau.

Dustin Ladenburger was re-elected to represent the Southwest region in Nebraska. He represents Farm Bureau members in 13 counties including Perkins, Lincoln, Dawson, Chase, Hayes, Frontier, Gospher, Phelps, Dundy, Hitchcock, Red Willow, Furnas, and Harlan. He grows dryland wheat, corn, milo, and has a cow-calf operation near Stratton. He is a member of Hitchcock County Farm Bureau.

David Grimes was elected to represent the South Central region of Nebraska. He represents Farm Bureau members in 13 counties including Hamilton, York, Seward, Kearney, Adams, Clay, Filmore, Saline, Franklin, Webster, Nuckolls, Thayer, and Jefferson. He replaces Leslie Boswell of Shickley, who completed her term of six years on the Nebraska Farm Bureau Board. Grimes and his wife Becky raise irrigated corn, soybeans, and alfalfa on their farm near Minden. They are members of Kearney/Franklin County Farm Bureau.

Hilary Maricle was re-elected as the Ag Promotion At-Large director. The Ag Promotion At-Large position represents local and state promotion and education committees on the state board of directors. These committees promote agriculture locally, statewide, and on a national level. Maricle and her husband, Brian, grow corn, soybeans, alfalfa, and raise cattle, hogs, and sheep near Albion. They are members of Boone County Farm Bureau.

Lance Atwater was re-elected as Youth-At-Large member of the board. The Youth-At-Large position represents young farmers and ranchers on the state board of directors. He and his wife, Krystal, grow irrigated corn, popcorn, non-GMO white corn, soybeans, and have a cow-calf operation near Ayr. They are members of Adams/Webster County Farm Bureau.

All terms are for three years. The Nebraska Board of Directors has 13 members, who must all be farmers or ranchers in Nebraska.



Calyxt Announces Collaboration with Central Valley Ag to Expand Grower Network

Calyxt, Inc., a plant-based technology company focused on healthy food ingredients, has entered into a collaboration with Central Valley Ag (CVA) cooperative, a leading provider of products and services in grain, agronomy, feed and energy, to expand Calyxt’s Identity Preserved grower network for Calyxt crop varieties.

CVA will contract acres to launch new Calyxt soybean varieties and offer seed distribution, seed treatment and agronomy services to Calyxt Identity Preserved growers. In addition, Calyxt will gain access to CVA’s grain elevators and rail logistics for the shipping of Calyxt’s High Oleic Soybean grain – further strengthening Calyxt’s supply chain.

The new relationship with CVA, and existing relationships with Landus and Agtegra, expands Calyxt’s access to geographies where 45% of the 89 million acres of U.S. soybean are grown. It also helps support the future launch of Calyxt’s high fiber wheat product in four of the top ten wheat production states in the U.S., including North Dakota, South Dakota, Kansas and Minnesota.

“This collaboration expands our geographic footprint into Nebraska and Kansas where we can introduce our new soybean varieties while further leveraging the success of our Identity Preserved system and premium producer program,” said Jim Blome, chief executive officer of Calyxt. “With more than 75,000 acres already contracted, we are nearing our goal to contract 100,000 acres for 2020.”

“This collaboration expands our access to geographies with 45% of domestic soybean acreage, supporting the continued growth of our oil customer base – having recently added multiple new restaurant chains as customers, with a packaged goods manufacturer in the final stages of testing. 2020 is shaping up to be an exciting year, and we look forward to continued operational execution and long-term shareholder value creation,” concluded Blome.

“We are pleased to announce our collaboration with Calyxt,” said Nic McCarthy, CVA senior vice president of agronomy. “This mutually beneficial relationship allows our farmers an opportunity to secure offtake and grow Calyxt’s high oleic soybean, while simultaneously increasing the utilization of our grain elevator and rail infrastructure.  We look forward to working with Calyxt management to create value for both their shareholders and our member-owners,” concluded McCarthy.



Truterra and Soil and Water Conservation Society Awarded $1.5M from USDA to Accelerate Adoption of Precision Nutrient Management Practices in Midwestern States

Truterra, LLC and the Soil and Water Conservation Society (SWCS) have been awarded $1.5 million in funding from USDA's Natural Resources Conservation Service (NRCS) to accelerate the adoption of precision nutrient management and soil health practices in partnership with agricultural retailers in Iowa, Kansas and Nebraska. Truterra, formerly Land O'Lakes SUSTAIN, is the sustainability solutions business of Land O'Lakes, Inc., one of America's largest farmer-owned cooperatives. SWCS is a nonprofit scientific and educational organization that serves as an advocate for conservation professionals and for science-based conservation practice, programs, and policy.

The joint project between Truterra and SWCS, titled Advancing Precision Nutrient and Soil Health Management with Retailer Cooperatives, will help four agricultural retailers in the Land O'Lakes SUSTAIN network set up innovation trial programs for growers to demonstrate, across three years of crop production, the benefits of a full-system approach to precision agriculture. The trials will use the Truterra™ Insights Engine, a leading on-farm conservation management platform, to help collect and measure findings.

"At Truterra, we know that collaboration drives stewardship. This grant is a monumental step in public-private collaboration supporting on-farm stewardship," said Matt Carstens, senior vice president of Land O'Lakes SUSTAIN. "With the Soil and Water Conservation Society and agricultural retailers, we are working together to build a system of change that seeks to increase and accelerate the rate of stewardship adoption around the country."

Project partners will support agricultural retailers in Iowa, Kansas and Nebraska to engage producers in on-farm trials that demonstrate the agronomic, environmental and economic incentives for conservation practice adoption. Through firsthand experience, the project aims to increase producer knowledge of these practices, integrate conservation management programs into retailer services, and broaden and accelerate conservation practice adoption. In addition to administering the program, SWCS will provide scientific support to help evaluate environmental outcomes.  The agricultural retailer partner in Nebraska is Frontier Cooperative based in Lincoln. 

"We are excited for this incredible opportunity to collaborate with USDA Natural Resources Conservation Service and Truterra to implement on-the-ground conservation activities and evaluate their impact," said SWCS CEO Clare Lindahl. "The Soil and Water Conservation Society's ability to bring together multiple perspectives around the newest research and technologies puts us in a strong position to simultaneously deliver innovative approaches to on-farm conservation and evaluate impact through a scientific lens. We look forward to strengthening public and private sector partnerships in the conservation space for the betterment of our natural resources and the future of agriculture through this project."

The funding is provided through the On-Farm Conservation Innovation Trials, a new component of the Conservation Innovation Grants (CIG) first authorized in the Conservation Title of the 2018 Farm Bill. The improved CIG program is one of many policy changes in the 2018 Farm Bill championed by Land O'Lakes. These policy improvements can help make on-farm conservation practices easier and more accessible to farmers and agricultural retailers.

The program will work with growers to implement a full suite of zone prescriptions, VRT applications, stabilizers, and tillage management in an effort to help enhance both profitability and environmental performance. Cover crops are also be included in the program.

Additional details on the grant and the projects will be released in the coming weeks and months.



Fischer Statement on Government Spending Legislation

U.S. Senator Deb Fischer (R-Neb.) released the following statement today after voting in favor of the government spending legislation passed by Congress:

“While I don’t support this process or the price tag, these bills contain too many important Nebraska priorities—including disaster relief—for me to oppose them. Each year, I meet with thousands of Nebraskans in my office and across the state about the needs of their families and our communities. These bills directly address many of those necessities and avoid a needless government shutdown.”

The spending legislation includes the following key Nebraska priorities Senator Fischer fought for:
Disaster relief:
-        More than $400 million for Nebraska’s military installations impacted by flooding
          o   Air Force procurement to replace RC-135 simulators and mission equipment at Offutt Air Force Base
          o   Rebuilding of Camp Ashland including refurnishing and remediation
-        An additional $1.5 billion in disaster aid for farmers and ranchers
-        Provisions from Senator Fischer’s Disaster Tax Relief bill, which provides tax relief to presidentially declared disaster areas
          o   Eliminates penalties for early withdrawals from IRAs for those in affected areas
          o   Eliminates cap on charitable deductions within disaster areas
          o   Expands casualty loss deduction to assist with destroyed property
          o   Temporarily establishes employee retention credits for businesses in affected areas

Military:
-        Military pay raise of 3.1 percent, the largest in a decade
-        Funding of the 55th Wing and state equities
          o   Continued modernization of the C-135 family of aircraft
          o   Open Skies recapitalization
-        Key nuclear modernization initiatives
          o   $3.0 billion for the B-21 bomber program
          o   $557 million for the Ground Based Strategic Deterrent program
          o   $713 million for the Long Range Standoff Weapon Program
-        $107.4 million for upgrades to test and evaluation infrastructure to support hypersonics, space, directed energy, and cyber

Families and safety:
-        School safety through funding for the STOP School Violence Act, which Senator Fischer cosponsored
-        One-year extension of Senator Fischer’s paid family leave tax incentive

Border security:
-        $1.38 billion for a border wall system
-        Require DHS to submit a report on visa overstays and publish border security metrics, which has long been a priority for Senator Fischer

Health and Human Services:
-        $2.82 billion for Alzheimer’s disease research
-        $1.63 billion for Community Health Centers that serve more than 28 million patients per year through 11,000 centers
-        $2.5 million for the Firefighter Cancer Registry



FY 2020 Omnibus Appropriations Includes Increased Funding for Ag
ASA Newsletter

Congress introduced a tax package this week that includes welcome increases in funding for agriculture research, inland waterways infrastructure and disaster assistance. Here’s what’s in the Fiscal Year 2020 Omnibus Appropriations package that impacts soy growers:

Ag Research
-    Funding for the Agriculture and Food Research Initiative (AFRI) was increased from $415 million to $425 million—which was a top appropriations priority for ASA.

Inland Waterways Infrastructure
-    The Energy & Water Appropriations portion of the package provides $7.65 billion for the U.S. Army Corps of Engineers, an increase of $652 million from last year.
-    The bill makes full use of the estimated revenues for the Inland Waterways Trust Fund and provides an enhanced cost-share for the Chickamauga Lock & Dam project at 65-35 instead of 50-50.
-    The bill provides $2.68 billion for the Army Corps of Engineers Construction account, an increase of $498 million above last year.
-    Funding for Operation and Maintenance is $3.79 billion, a slight increase above FY19 levels and a sixth consecutive year of increased funding.
-    The Harbor Maintenance Trust Fund projects receive $1.63 billion, which exceeds the target set by the Water Resources Reform and Development Act (WRDA) of 2014.

Disaster Relief
-    The bill includes $1.5 billion additional for Wildfires and Hurricanes Indemnity Program (WHIP) disaster assistance and clarifies that quality losses due to excessive moisture are also covered.



Disaster Aid, Farm Stress, Broadband Funding Wins for Farmers and Ranchers

Legislation to fund the government adopted by Congress this week contains many wins for American farmers and ranchers. From much-needed disaster aid to increased broadband access, rural communities will benefit from this legislation.

“We are grateful to members of Congress from both parties for their work to develop and pass budget bills that will help farmers and ranchers on multiple fronts,” said American Farm Bureau Federation President Zippy Duvall.

Wins for American farmers and ranchers:
-    $1.5 billion in additional disaster aid will expand recovery efforts to those impacted by severe weather in 2018 and 2019.
-    Full funding of the Farmer and Rancher Stress Assistance Network at $10 million will help those struggling to cope with a tough year in agriculture.
-    $550 million in grant funding for the ReConnect program will help expand broadband access to historically underserved communities. This will allow people living in these underserved areas to utilize new technologies to reach customers, access precision agriculture technology and connect to communities worldwide.
-    Retroactively extending the biodiesel tax credit to apply to 2018 and 2019 and extending it through 2022 will bring stability to producers after years of debate in Congress. Ten biodiesel plants have halted production since the $1-per-gallon credit expired in 2017.
-    Delaying the requirement for implementation of electronic logging devices on livestock haulers through Sept. 30, 2020 will help safeguard the welfare of livestock during transportation.



EPA Takes Steps to Provide Needed Clarity and Certainty for U.S. Agriculture

Today, the U.S. Environmental Protection Agency (EPA) is announcing two important actions that will help the agricultural sector protect crops from pests and weeds. Under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), EPA is approving the use of 10 pesticide products on hemp in time for the 2020 growing season. Nine of these products are biopesticides and one is a conventional pesticide. EPA is also issuing a proposed interim decision on atrazine — a widely used herbicide. Both actions provide regulatory certainty and clarity on how these tools can be used safely while also helping to ensure a strong and vibrant agricultural market.

“With common-sense actions, we are protecting the health of our nation and ensuring that crops such as corn, sorghum, sugar cane and hemp can be protected against a broad spectrum of weeds and pests,” said EPA Administrator Andrew Wheeler. “Under the Trump Administration, the EPA is committed to providing much needed certainty to farmers and ranchers across the country who rely on crop protection tools to ensure a global supply of products, while driving economic growth in agricultural communities across America.”

The first action EPA is announcing is the approval of ten pesticide applications for use on hemp, just in time to be used during the 2020 growing season. EPA wanted to ensure the agency acted on these applications quickly to give growers certainty for next spraying season in 2020 and to make timely purchasing decisions for next year. These approvals were made possible by the 2018 Farm Bill, which removed hemp-derived products from Schedule I status under the Controlled Substances Act.

While EPA oversees pesticide registrations for hemp under FIFRA, other federal agencies are working to streamline their separate regulatory implementation processes for the newly legalized crop. The 2018 Farm Bill directed the U.S. Department of Agriculture (USDA) to develop a regulatory oversight program for hemp. USDA has since proposed a rule for state-level hemp growing/management plans. In addition, the Food and Drug Administration also plays a role in regulating hemp products when they fall under their regulatory authority. EPA is committed to working with our federal partners and helping hemp growers obtain the tools needed to support and increase commercial production. The step the agency is taking today recognizes that innovation in pesticide use is critical to the success of our strong and vibrant agricultural sector.

The second action EPA is taking today is to propose new, stronger protections to reduce exposure to atrazine — the next step in the registration review process required under FIFRA. Atrazine is a widely used herbicide that controls a variety of grasses and broadleaf weeds. It is well-known and trusted by growers as one of the most effective herbicides. Atrazine is used on about 75 million acres annually and is most often applied to corn, sorghum, and sugarcane. (Note: Atrazine is not one of the ten pesticides approved for hemp.)

As part of this action, the agency is proposing a reduction to the maximum application rate for atrazine used on residential turf, and other updates to the label requirements, including mandatory spray drift control measures. EPA’s proposed decision is based on the 2016 draft ecological risk assessment and the 2018 human health draft risk assessment for atrazine. EPA is also proposing updates to the requirements for propazine and simazine, which are chemically related to atrazine. EPA will be taking comment on the atrazine, propazine and simazine Proposed Interim Decisions for 60 days after publication in the Federal Register. Comments can be made to the following dockets EPA-HQ-OPP-2013-0266 (atrazine), EPA-HQ-OPP-2013-0250 (propazine), and EPA-HQ-OPP-2013-0251 (simazine) once the Federal Register notice publishes online.

In addition to today’s regulatory actions, EPA is continuing to build and enhance its relationship with the agricultural sector through the agency’s Smart Sectors program. Staff and senior leaders, including Region 5 Administrator Cathy Stepp and Region 7 Administrator Jim Gulliford, are meeting today in Lenexa, Kansas with representatives from the renewable fuels industry. The meeting is providing a platform to collaborate with the renewable fuels industry and develop sensible approaches that better protect the environment and public health.

For additional information:
Hemp action: https://www.epa.gov/pesticide-registration/pesticide-products-registered-use-hemp.
Atrazine action: https://www.epa.gov/ingredients-used-pesticide-products/atrazine-background-and-updates.



USDA:  Record High Red Meat and Pork Production in November

Commercial red meat production for the United States totaled 4.74 billion pounds in November, up 1 percent from the 4.68 billion pounds produced in November 2018.

Beef production, at 2.30 billion pounds, was 1 percent below the previous year. Cattle slaughter totaled 2.77 million head, down 1 percent from November 2018. The average live weight was up 5 pounds from the previous year, at 1,375 pounds.

Veal production totaled 6.1 million pounds, 9 percent below November a year ago. Calf slaughter totaled 46,500 head, down 16 percent from November 2018. The average live weight was up 17 pounds from last year, at 227 pounds.

Pork production totaled 2.43 billion pounds, up 3 percent from the previous year. Hog slaughter totaled 11.3 million head, up 3 percent from November 2018. The average live weight was up 3 pounds from the previous year, at 288 pounds.

Lamb and mutton production, at 11.2 million pounds, was down 13 percent from November 2018. Sheep slaughter totaled 179,700 head, 8 percent below last year. The average live weight was 125 pounds, down 7 pounds from November a year ago.

By State   (million lbs.  -  % Nov '18)
Nebraska .....:     738.4            103 
Iowa ............:     768.0            109      
Kansas .........:     424.8             84      

January to November 2019 commercial red meat production was 50.3 billion pounds, up 3 percent from 2018. Accumulated beef production was up 1 percent from last year, veal was down 2 percent, pork was up 5 percent from last year, and lamb and mutton production was down 3 percent.



Farmers Unite to Launch U.S. Hemp Growers Association

The U.S. Hemp Growers Association (USHGA), www.ushempga.org, the only national farmer-directed hemp trade association, was announced this week in Indianapolis. Founded by a diverse group of leaders, the organization will provide world-class educational and market development resources, research, and networking opportunities and will unify the voice of farmers to actively engage in critically important advocacy efforts.

Founding partners that came together to create USHGA include U.S. Hemp Farming Alliance, First Crop, International Hemp Solutions, HiLo Seed, GenCanna and Farm Journal. At launch, more than 300 farmer-members of U.S. Hemp Farming Alliance will fold into USHGA.

Caren Wilcox will serve as the inaugural USHGA executive director. Wilcox is a well-known ag and food leader who has held executive roles at Hershey, the USDA and the Organic Trade Association. USHGA will meet in late February 2020 in San Antonio to secure founding partners and to install an initial board of directors. A majority of the board leaders will be active hemp farmers.

"I am honored to be a part of this historical moment in U.S. agriculture and lend my experience and expertise to the emerging commercial hemp industry as we develop this organization," said Caren Wilcox, executive director for USHGA. "The forward-thinking industry leaders who have partnered on this endeavor see the potential for hemp as an agricultural commodity and understand this industry can contribute to the environment and sustainable products that benefit, at the grassroots level, farmers and consumers."

"Industrial hemp provides a unique economic opportunity for farmers and all of rural America," said Michael Bowman, cofounder of First Crop. "I am thrilled that First Crop is a founding partner of USHGA. Our focus is to promote regenerative farming practices to nurture the soil, not just for this year's crop but for future generations, and hemp is one of the tools that will help us achieve these goals."

Farmers and organizations interested in supporting U.S. agriculture's role in the success of industrial hemp should go to www.ushempga.org to obtain more information or to sign up as a member of the organization.



Climate Change Conversation to shift dramatically, research shows

Most Americans engaging online about climate change are mired in the debate as to whether it exists. However, the focus of the conversation will shift dramatically in the next two years, according to new research from The Center for Food Integrity (CFI). In addition, there is no evidence consumers associate or link the consumption of animal protein to climate change.

Currently, 52.2 million people are engaged in the climate change conversation, with less than half of those focused on causes and solutions. However, CFI’s digital ethnography report, which uses a research tool that analyzes millions of conversations online in real time, shows that while the climate change debate is only expected to grow 3.6 percent in the next two years, the conversation on causes is expected to grow 260 percent and solutions 202 percent. The heated dialogue is now focused on “what’s next.” 

“The findings aren’t surprising, given the rapidly growing interest in sustainability,” said Terry Fleck, CFI executive director. “Those interested in causes and solutions want to bring about change by taking action on a personal level and being the change. They also fear making uninformed choices, want to protect the American way of life, and look to science and innovation to provide solutions.” 

While consumers are not talking about a link between consumption of animal protein and climate change, they are talking about the link between greenhouse gas emissions from livestock production and climate change, according to the research. The level of online conversation about this topic is just shy of 26 million, but expected to grow to nearly 210 percent in the next two years.

“While ‘local food’ is not associated with improving climate change, key topics associated with ‘local food’ and ‘improving climate change’ include beef industry topics like cattle farming, beef consumption, industrial agriculture, environmental footprint and water use,” said Fleck. “These topics are more related to causes than local food production to improving climate change.”

Engaging consumers on the topic of climate change presents a unique challenge given today’s political environment, said Fleck. However, the predicted conversation shift to causes and solutions, and focus on science and innovation, provides an opportunity for the food industry to communicate its successes and its commitment to addressing climate change via technology.

“These consumers are information seekers and advocates for the environment, and crave credible information from sources they can trust,” said Fleck. “Provide balanced information, share third-party studies and give them a forum to engage with you on the topic.”

Suggest ways that they can make a difference, too.

“They want to play a part in improving our planet and ‘be the change,’” he said. “We encourage the food industry to do its part to empower them.”

Additional information on CFI’s digital ethnography research can be found at www.foodintegrity.org. 



NMPF Thanks Congress for Prodding FDA to Get the Job Done on Fake Dairy

The National Milk Producers Federation commended Congress for including language in the report accompanying the final 2020 government funding measure to urge the Food and Drug Administration to finally enforce dairy-product standards of identity.

Both the House and Senate versions of the Agriculture-FDA bill report included language reaffirming bipartisan congressional concern with mislabeled imitation dairy products and directing FDA to enforce its own rules on labeling. The House and Senate passed the final compromise funding bill this week.

“We hope that the bipartisan, bicameral reminder from Congress, coupled with Dr. Stephen Hahn’s confirmation as FDA Commissioner earlier this month, will give FDA momentum to finally enforce standards of identity for dairy products,” said Jim Mulhern, president and CEO of NMPF. “Plant-based mislabeling intentionally misleads consumers into purchasing nutritionally inferior products that bear dairy’s good name. It’s long past time for FDA to right this wrong, and we hope this message from Congress helps make it happen.”

The report reaffirms Congress’s concern “about the proliferation of products …. that include the names of dairy products that do not contain milk or ingredients derived from milk,” as stated in Senate language. To address the problem, the Senate asks FDA to report on “steps taken to enforce against dairy imitation products marketed using dairy names,” while House language “urges the FDA to continue its work toward ultimately enforcing standards of identity for dairy products.”

The final measure also provides funding for several critical programs that were authorized last year in the 2018 Farm Bill. These include the Farm and Ranch Stress Assistance Network to help distressed farmers during challenging times; the Dairy Business Innovation program to help the dairy industry explore opportunities for innovation and modernization; and the Healthy Fluid Milk Incentives Program designed to increase consumption of fluid milk.

Dec 19 - US House Passes USMCA - Farmer Organizations Respond

Secretary Perdue Statement on House Passage of USMCA

U.S. Secretary of Agriculture Sonny Perdue issued the following statement after the House of Representatives passed the U.S.-Mexico-Canada Agreement (USMCA) by a bipartisan vote of 385-41.

“I’ve long said that support for USMCA crosses political parties, the bipartisan passage of the agreement today is proof of that,” Secretary Perdue said. “I am pleased the House finally brought this agreement to a vote and encourage quick passage in the Senate. President Trump delivered on his promise to replace NAFTA and USMCA is a huge success for America’s farmers and ranchers. This agreement will unleash the bounty of America’s agricultural harvest to two of our largest trading partners in the world and it is critical to the success of rural America.”
 
Background:
USMCA will advance United States agricultural interests in two of the most important markets for American farmers, ranchers, and agribusinesses. This high-standard agreement builds upon our existing markets to expand United States food and agricultural exports and support food processing and rural jobs.

Canada and Mexico are our first and second largest export markets for United States food and agricultural products, totaling more than $39.7 billion food and agricultural exports in 2018. These exports support more than 325,000 American jobs.

All food and agricultural products that have zero tariffs under the North American Free Trade Agreement (NAFTA) will remain at zero tariffs. Since the original NAFTA did not eliminate all tariffs on agricultural trade between the United States and Canada, the USMCA will create new market access opportunities for United States exports to Canada of dairy, poultry, and eggs, and in exchange the United States will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products.

Earlier this year, nearly 1,000 American food and agriculture associations and companies announced their support for USMCA and the National Association of State Departments of Agriculture signed a letter to Congressional leadership urging them to ratify USMCA.

In September, all former U.S. Secretaries of Agriculture since President Reagan’s Administration announced support for USMCA. In a letter to Congressional leaders, former Secretaries John Block (Reagan), Mike Espy (Clinton), Dan Glickman (Clinton), Ann Veneman (W. Bush), Mike Johanns (W. Bush), Ed Shafer (W. Bush), and Tom Vilsack (Obama) underscored the importance of passing USMCA saying, “We need a strong and reliable trade deal with our top two customers for U.S. agriculture products. USMCA will provide certainty in the North American market for the U.S. farm sector and rural economy. We strongly support ratification of USMCA.”

Key Provision: Increasing Dairy Market Access
    America’s dairy farmers will have expanded market opportunities in Canada for a wide variety of dairy products. Canada agreed to eliminate the unfair Class 6 and 7 milk pricing programs that allowed their farmers to undersell U.S. producers.

Key Provision: Biotechnology
    For the first time, the agreement specifically addresses agricultural biotechnology – including new technologies such as gene editing – to support innovation and reduce trade-distorting policies.

Key Provision: Geographical Indications
    The agreement institutes a more rigorous process for establishing geographical indicators and lays out additional factors to be considered in determining whether a term is a common name.

Key Provision: Sanitary/Phytosanitary Measures
    The three countries agree to strengthen disciplines for science-based measures that protect human, animal, and plant health while improving the flow of trade.

Key Provision: Poultry and Eggs
    U.S. poultry producers will have expanded access to Canada for chicken, turkey, and eggs.

Key Provision: Wheat
    Canada agrees to terminate its discriminatory wheat grading system, enabling U.S. growers to be more competitive.

Key Provision: Wine and Spirits
    The three countries agree to avoid technical barriers to trade through non-discrimination and transparency regarding sale, distribution, labeling, and certification of wine and distilled spirits.



Sasse Statement on House Passage of USMCA

U.S. Senator Ben Sasse, an outspoken advocate for Nebraska agriculture and trade, issued the following statement after the House of Representative finally passed the USMCA trade agreement after more than a year of stonewalling.

"About dang time. Speaker Pelosi's priorities are seriously out of whack. She wasted a full year stonewalling USMCA because she didn't want to give President Trump and Nebraska's farmers and ranchers a win. But we've been working hard to get this deal done. Today, we finally got that vote in the House - and that's a huge win for ag in our state. This is big."



Smith Statement on House Passage of USMCA

Congressman Adrian Smith (R-NE) released the following statement after the House of Representatives passed legislation to enact the United States–Mexico–Canada Agreement (USMCA) today:

“After much hard work and negotiations by the administration, I am incredibly pleased were able to come together to enact this trade agreement which will greatly benefit Nebraska’s, and America’s, producers, consumers, and businesses small and large.

“President Trump correctly determined NAFTA needed to be modernized for the 21st century, and USMCA meets that standard by maintaining existing trade opportunities, creating new ones, and implementing enforcement standards which ensure our partners follow through on the promises they have made. This historic trade agreement is a sign of good things to come for American trade.”

Smith, a senior member of the Committee on Ways and Means, which has jurisdiction over trade, travelled to Ottawa and Mexico City to attend USMCA negotiations and served on the Republican whip team supporting USMCA enactment.



Ricketts Applauds House Passage of USMCA

Today, Governor Pete Ricketts issued the following statement upon ratification of the U.S.-Mexico-Canada Agreement (USMCA) by the U.S. House of Representatives.

“Today’s passage of USMCA by the U.S. House of Representatives is a big victory for American farmers and working families,” said Gov. Ricketts.  “This agreement gives Nebraskans certainty about two of our most important international markets, and will expand opportunity for our dairy farmers.  Thank you to Nebraska’s federal delegation for their tireless work to get this deal through Congress.”



Statement by Steve Nelson, President, Regarding House Vote on United States-Mexico-Canada-Agreement (USMCA)

“Today’s vote in the House moves us one step closer to bringing much needed stability in our trade relations with two of our most important trade partners in Mexico and Canada. While this important vote was long overdue, it’s welcomed news in farm country. We thank Congressman Fortenberry, Bacon, and Smith for their votes and support for USMCA. Securing USMCA is one of the top items on the “to-do” list for expanding markets for our homegrown agriculture products. We encourage the Senate to move swiftly to follow suit.”



Naig makes statement on USMCA passing through the House

Iowa Secretary of Agriculture Mike Naig released the following statement regarding the U.S. House of Representatives passing the U.S.-Mexico-Canada Agreement (USMCA).

"Passing of the USMCA through the U.S. House of Representatives is one step closer to ratifying this much-needed trade agreement," said Secretary Naig. "As our largest trading partners, Canada and Mexico purchase more than $10.3 billion in agricultural exports each year. This supports over 83,000 Iowa jobs, gives farmers more market access to sell their products, and allows consumers to save money on imported goods."



USMCA Misses the Mark for U.S. Farmers and Ranchers

Today, the U.S. House of Representatives voted to approve the U.S., Mexico, and Canada trade agreement (USMCA).   Lincoln, NE-based The Organization for Competitive Markets (OCM) issued the following statement:

OCM is gravely disappointed that the economic viability of America’s farmers and ranchers has once again been left out of the trilateral trade agreement. Like its predecessor, NAFTA, USMCA fuels the consolidation and monopolization of food and agriculture, and is harmful to the survivability of America’s independent farmers and ranchers.

OCM opposes the ratification of USMCA. Our concern is not so much for what USMCA does, but rather what it fails to do. NAFTA provided windfall profits for global corporations at the expense of farm and ranch families, and USMCA does not tilt the scales of justice back. It does not address excessive agriculture and food market concentration, the overproduction of milk, the disparity in grain pricing, nor does it provide the U.S. with mandatory Country of Origin Labeling authority.

The U.S. Senate is expected to take up USMCA in January. Mexico has approved the agreement and Canada is likely to hold a vote in late January.



IPPA Applauds House Action on USMCA

The Iowa Pork Producers Association supports actions taken today by the U.S. House when it passed the U.S.-Mexico-Canada Agreement (USMCA).

"Exports are important to Iowa and U.S. pig farmers, and that's why we applaud the U.S. House for taking action to ratify the USMCA agreement negotiated by the Trump Administration. We especially want to thank all four of Iowa's U.S. House of Representative members for voting for the agreement," said Trent Thiele, Elma. Thiele is president of the Iowa Pork Producers Association.

"Our industry has worked many years in developing valuable international trading relationships that have fueled Iowa's rural economy and helped offset the U.S. trade deficit. It is important to me and Iowa's other pig farmers that we return to those good working relationships we have had with Mexico and Canada."

When combined, the joint Mexico and Canada market has consistently purchased 40 percent of U.S. pork exports when there was a trade agreement between the three countries.

"This agreement will protect Iowa's pork producers from being caught in the middle, as we were in 2018 and through the first half of 2019. Economic estimates have said we lost $12 per pig during that time period because of tariff issues," Thiele said.

"We now encourage the U.S. Senate to work quickly to also approve the USMCA," Thiele said.



NCGA: House Passes USMCA, Delivers a Win for Agriculture

National Corn Growers Association President Kevin Ross today thanked members of the U.S. House of Representatives for their bipartisan approval of the United States-Mexico-Canada Agreement (USMCA). Ross made the following statement.

“Corn farmers have been working toward this vote for nearly a year, sending emails, having meetings and making phone calls to their representatives in support of USMCA. All of agriculture should be incredibly proud to see these efforts pay off with such a strong, bipartisan vote. We wouldn’t be at this stage in the ratification process without the hard work of individual farmers across the country. Ratifying USMCA has been NCGA’s top legislative priority because Mexico and Canada are the U.S. corn industry’s largest, most reliable markets.

“NCGA thanks members of the House for their votes in support, along with President Trump and his administration’s continued efforts to come to a bipartisan consensus. It’s now up to members of the U.S. Senate to quickly pass USMCA in the new year.” 



U.S. Dairy Industry Praises House Passage of USMCA, Urges Senate Action

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) praised the House of Representatives for today approving legislation implementing the United States-Mexico-Canada Agreement (USMCA).

“USMCA will bring tangible benefits to the U.S. dairy industry by upgrading trade rules, opening the Canadian market to U.S. dairy exports and preserving our valuable market access in Mexico,” said Tom Vilsack, president and CEO of USDEC. “Today’s bipartisan vote is indicative of the need to immediately secure these benefits for dairy and all of agriculture.”

“Today’s vote brings us one step closer to finalizing USMCA and securing a more certain future for America’s farmers and ranchers,” said Jim Mulhern, president and CEO of NMPF. “It is imperative that the Senate act now to finalize USMCA.”

Ambassador Robert Lighthizer worked diligently alongside members of Congress to address outstanding concerns and deliver an improved trade pact. The House passage of USMCA and its broad range of support is a testament to their efforts.

USMCA makes important changes to Canada's trade-distorting policies, reforms Canada's controversial dairy pricing system and provides exclusive access to the Canadian market for U.S. farmers and manufacturers. The trade deal also strengthens our relationship with Mexico and establishes new protections for common cheese names, using a combination of approaches to protect the continued use of a number of generic cheese terms, such as parmesan and feta.



RFA Applauds House Approval of USMCA

The Renewable Fuels Association today lauded a vote by the U.S. House of Representatives approving the United States-Mexico-Canada Agreement (USMCA), a crucial trade pact that will benefit U.S. ethanol producers and rural economies across the nation. New fact sheets released today by RFA highlight the significance of the Canadian and Mexican export markets to U.S. ethanol producers. RFA President and CEO Geoff Cooper offered the following statement:

“America’s ethanol producers are encouraged by the approval of USMCA in the House, and we urge the Senate to act swiftly to ratify the agreement. Canada and Mexico are among our most important and reliable export markets for both ethanol and distillers grains, and we look forward to strengthening our trading relationship with the two countries. USMCA is a good deal for the U.S. ethanol industry, the farmers who support us, and our industry’s partners in Canada and Mexico.”

In 2018, Canada ranked second for ethanol exports from the United States, purchasing 350 million gallons, and ranked in the Top 10 for distillers grains. Canada has imported more ethanol from the United States since 2012 than any other country in the world. Click here for more information.

Mexico was the top export market for U.S. distillers grains in 2018, importing more than 2 million metric tons, and ranked in the Top 10 for ethanol exports.



NCBA Urges Senate to Swiftly Follow House's Lead

National Cattlemen’s Beef Association (NCBA) President Jennifer Houston issued the following statement regarding the U.S. House of Representatives' approval of the U.S.-Mexico-Canada Agreement (USMCA) by a vote of 385-41:

"Today was a crucial win for all U.S. beef producers and a reassurance that U.S. beef will continue to have duty-free access to Canada and Mexico," said Houston. "A big thank-you goes to the Trump Administration and every lawmaker who voted to approve USMCA. Of course, there is still more work left to do, so I urge the Senate to swiftly pass the USMCA and send it to the President's desk."



Soy Growers Applaud House Passage of USMCA
First hurdle towards ratification acheived with 385-41 vote!

Soy growers, other agriculture and business groups have rallied collectively for months to ensure the House of Representatives would pass the “new NAFTA” before the fade of 2019. Today, that critical step has happened. The American Soybean Association (ASA) expresses its strong appreciation to Speaker Pelosi and the House for passing the U.S.-Mexico-Canada Agreement (USMCA).

“This is a win for soybean farmers and a win for the Administration and Congress. Their efforts to pass a free trade deal that can restore certainty and stability to an important export market for our farmers demonstrates that they can accomplish great things working in unison,” said Bill Gordon, soy grower from Worthington, Minn., and ASA president. “We express our thanks to the House of Representatives for this momentous act. We now look to the Senate to take up and pass USMCA in early 2020.”

Mexico is the #2 market for whole beans, meal and oil, and Canada is the #4 buyer of meal and #7 buyer of oil for U.S. soybean farmers, making the trade agreement essential to sustaining the growth realized in those two countries under the North American Free Trade Agreement (NAFTA). Under NAFTA, U.S. soybean sales to Mexico quadrupled and to Canada doubled.



USMEF Statement on House Approval of USMCA

Today the U.S. House of Representatives approved implementing legislation for the U.S.-Mexico-Canada Agreement (USMCA).  U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:

USMEF applauds the House of Representatives for approving the implementing legislation for USMCA and the bipartisan effort by Congressional leaders and the Trump administration to bring USMCA to a House vote.

Ratification of USMCA is an important step in solidifying trade relations with Mexico and Canada, which are critical destinations for U.S. pork, beef and lamb. This agreement will bolster the United States' position as a reliable supplier to two leading markets that currently account for about one-third of all U.S. red meat exports. We look forward to the Senate taking up this legislation as soon as possible and completing the ratification process.



 ACE: Passing USMCA important to building upon key trade partner relationships

Today, the U.S. House of Representatives passed the U.S.-Mexico-Canada Agreement (USMCA), which was signed by the United States, Mexico and Canada last November to replace the North American Free Trade Agreement (NAFTA). The new agreement solidifies a multi-billion-dollar export market while providing more certainty to farmers and instilling confidence in other nations that the U.S. is a reliable partner and supplier to help U.S. agriculture remain competitive for years to come. ACE CEO Brian Jennings released the following statement in response to today’s announcement:

“Canada is the most reliable export market for U.S. ethanol over the course of time, while Mexico continues to be the largest buyer of U.S. Distillers’ Dried Grains (DDGs) and holds great potential for increasing U.S. ethanol exports. While USMCA doesn’t directly address ethanol specific trade provisions, the passage of this agreement is key to maintaining positive relationships with our neighbors to the north and south and future opportunities in these markets for ethanol, the fastest-growing agricultural export in the U.S.”



NGFA commends House lawmakers for supporting USMCA 

The National Grain and Feed Association (NGFA) commended House lawmakers for voting 385-41 in favor of the U.S.-Mexico-Canada Agreement (USMCA).

“Having a sound and competitive trade agreement with Mexico and Canada is critical to the continued economic success of U.S agriculture and for the U.S. economy as a whole,” said NGFA President and CEO Randy Gordon. “The USMCA preserves or expands upon critical market access for U.S. agricultural products in the North American market and provides a 21st century blueprint for future trade agreements.

USMCA would further enhance seamless U.S. food and agricultural trade with Mexico and Canada and would deliver an additional $2.2 billion in U.S. economic activity, he noted.

“NGFA particularly appreciates the dedication and persistence of U.S. Trade Representative Robert Lighthizer and House leadership to overcome final hurdles to reach this milestone,” Gordon said. “We urge the Senate to continue progress on this vital agreement for the United States and the entire North American region by ratifying USMCA as soon as possible.”

The USMCA trade agreement would preserve or expand upon critical market access for U.S. agricultural products in the North American market. In addition to maintaining a tariff-free environment for most agricultural goods, USMCA also would address non-tariff barriers that are paramount among the current global challenges that distort and slow cross-border trade flows. Among other benefits, USMCA would: Facilitate cross-border trade flows through higher levels of regulatory coherence and cooperation; implement timelines and notifications for adverse import checks; reduce the likelihood of trade disruptions in products of agricultural biotechnology; apply technical consultations for sanitary and phytosanitary (SPS) disputes and create a mechanism for expeditiously resolve cross-border SPS issues on individual shipments; and require that SPS standards be grounded in science, based on proper risk assessments and implemented using prudent risk-management techniques.



R-CALF USA Statement on the House Passage of USMCA

R-CALF USA, the nation's largest producer-only cattle trade association that lobbies on behalf of America's cattle farmers and ranchers issued the following statement on today's passage of the United States Mexico Canada Agreement (USMCA) in the U.S. House of Representatives. The USMCA, same as its predecessor the North American Free Trade Agreement (NAFTA), does not require beef derived from Mexican or Canadian cattle to bear a label of origin at retail sale in our domestic marketplace. 

"We are extremely disappointed but not at all surprised that it is business as usual in the House of Representatives. They continue to support the financial self-interests of multinational corporations while harming American consumers and independent cattle producers.

"But it isn't over yet, we will now shift our focus on the Senate and meanwhile, we know that our efforts have significantly elevated the awareness that mandatory Country-of-Origin Labeling (COOL) for beef must be restored and we will not rest until it is.  

"The longer Congress and the president stall to reinstate mandatory COOL for beef more and more of America's largest segment of agriculture, the U.S. cattle industry along with economic opportunities for independent cattle producers, will be transferred to other countries; thus depriving rural America of its economic benefits.



USMCA Is a Victory for Farmers and Ranchers
American Farm Bureau Federation President Zippy Duvall

“Farm Bureau commends the House for approving the United States-Mexico-Canada Agreement. It was a bipartisan effort as shown by the overwhelming 385 to 41 vote, and we appreciate the work of members of Congress on both sides of the aisle in getting this deal done.

“This trade agreement could not come at a more critical time for U.S. agriculture. Farmers and ranchers have been hit with a perfect storm of low commodity prices, weather disasters, trade disruptions and a severe downturn in the farm economy. The USMCA will provide continuity in the growth of the North American market and will strengthen our trading relationships with Canada and Mexico, which are our number-one and number-two export markets, respectively.

“We are hopeful that USMCA can be a model for future U.S. trade agreements, as these modernized rules will be a strong guide for addressing continuing issues. We urge the Senate to quickly approve the USMCA.”

USMCA BACKGROUND
Designed to replace the North American Free Trade Agreement, the USMCA builds on important trade relationships in North America.
-    The agreement is expected to increase U.S. ag exports by $2 billion and result in a $65 billion increase in gross domestic product.
-    The agreement will provide new market access for American dairy and poultry products while preserving the zero-tariff platform on all other ag products.
-    In particular, the agreement gives U.S. dairy products access to an additional 3.6% of Canada’s dairy market – even better than what was proposed in the Trans-Pacific Partnership trade agreement.
-    U.S. wheat will receive fairer treatment, thanks to Canada’s agreement to grade our wheat no less favorably than its own.
-    Mexico and the United States have also agreed that all grading standards for ag products will be non-discriminatory.
-    Additional provisions enhance science-based trading standards among the three nations as the basis for sanitary and phytosanitary measures for ag products, as well as progress in the area of geographic indications.
-    The agreement also includes measures that address cooperation, information sharing and other trade rules among the three nations related to agricultural biotechnology and gene editing.

Dec 19 - EPA Finalizes RFS Volumes for 2020 - Producer Groups Respond

EPA Fulfills Another Trump Administration Promise: Finalizes RFS Volumes for 2020 and Biomass Based Diesel Volumes for 2021

Today, the U.S. Environmental Protection Agency (EPA) finalized a rule that establishes the required renewable volumes under the Renewable Fuel Standard (RFS) program for 2020, and the biomass-based diesel volume for 2021. Through this action, the Trump Administration has fulfilled yet another key promise to the American people, American farmers and American biofuels producers by increasing biofuels volumes under the renewable fuel standard and modifying the program requirements to ensure those volumes are met. The EPA is committed to ensuring a net of 15 billion gallons of conventional biofuel is blended in 2020.

“Through President Trump’s leadership, this Administration continues to promote domestic ethanol and biodiesel production, supporting our Nation’s farmers and providing greater energy security,” said EPA Administrator Andrew Wheeler. “President Trump committed to our nation’s farmers that biofuel requirements would be expanded in 2020. At the EPA we are delivering on that promise and ensuring a net of 15 billion gallons of conventional biofuel are blended into the nation’s fuel supply.”

Under the Trump Administration, EPA has consistently increased the renewable volume obligations and continued to expand the nation’s renewable fuels sector. Through this rule, EPA has modified the RFS program by projecting small refinery relief to ensure that these final volumes are met, while adjudicating small refinery relief when appropriate. As proposed, we are finalizing a projection methodology based on the 2016-2018 annual average of exempted volumes had EPA strictly followed the Department of Energy (DOE) recommendations of 770 million Renewable Identification Numbers (RINs) in those years, including granting 50 percent relief where DOE recommended 50 percent relief. This is our general approach to adjudicating Small Refinery Exemption (SRE) petitions going forward, beginning with 2019 SRE petitions and including 2020 SRE petitions and beyond, we are committed to following the DOE recommendations. By proposing effectively 15.8 billion gallons for 2020 we will ensure meeting our target of 15 billion gallons.

The key elements of today’s action are as follows:
-    “Conventional” biofuel volumes, primarily met by corn ethanol, will be maintained at the 15 billion gallon target set by Congress for 2020.
-    Cellulosic biofuel volumes for 2020, and thus advanced biofuel volumes, will increase by almost 170 million gallons over the 2019 standard.
-    Biomass-based diesel volumes for 2021 will be equivalent to the standard for 2020, still more than double the statutory requirement.
-    EPA will closely examine the labeling requirements for E15 fuel and move forward with clarifying regulations as needed.
-    EPA has modified the way RFS obligations are determined to better ensure that these volumes are met, while still allowing for relief for small refineries consistent with the direction provided by Congress under the statute. By proposing effectively 15. 8 billion gallons we will net out at 15 billion.

This final rule is the latest in a series of steps the Administration has taken to expand domestic energy production and improve the RFS program which will help American farmers.

More information can be found here: https://www.epa.gov/renewable-fuel-standard-program/final-renewable-fuel-standards-2020-and-biomass-based-diesel-volume. 



Fischer Statement on Final RFS Volumes for 2020

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today after the Environmental Protection Agency (EPA) announced the final rule establishing Renewable Volume Obligations for 2020 and the biomass-based diesel volume for 2021 under the Renewable Fuel Standard (RFS):

“I appreciate the Nebraskans—including our farmers and ethanol producers— who made their voices heard and submitted comments to EPA. Like many of them, I am disappointed in this announcement because it differs from the commitment made to my colleagues and me this fall that the 15 billion gallon obligation would be met using a 3-year rolling average of actual waived gallons. Instead, the EPA has chosen to use their own discretion and the Department of Energy’s recommendations when determining waived gallons, despite their track record of disregarding these recommendations.

“While the final rule is still an improvement over the previous one, I am, and I know Nebraskans are, wary that the EPA will follow the law and meet these obligations like they say they will. President Trump cares about farmers and has made big promises to rural America. I will continue to work to make sure those promises are fulfilled.”

More information:
In October, the EPA announced an RFS deal. As part of the deal, the agency said it would begin to account for projected numbers of gallons exempted when setting new Renewable Volume Obligations for refiners starting in 2020.

In November, Senator Fischer submitted a letter to EPA Administrator Wheeler expressing concern about the way the agency plans to calculate the reallocation of biofuel gallons lost due to exemptions for oil refineries.

Senator Fischer has long advocated for bringing more transparency to the exemption process. Earlier this year, she introduced the bipartisan RFS Integrity Act with Senator Tammy Duckworth (D-Ill.). The legislation would ensure the EPA properly accounts for exempted gallons and ensures that key information surrounding small refinery exemptions is made publicly available.



Sasse Statement on EPA Renewable Volume Obligations Rule

U.S. Senator Ben Sasse, an outspoken advocate for Nebraska agriculture, issued the following statement regarding the Environmental Protection Agency’s announcement of a final Renewable Fuel Standard volume obligations rule that does not match a previous agreement at the White House.

“This is a disappointment. We made some real progress at a White House meeting that President Trump, EPA Administrator Wheeler, and Senators Fischer, Grassley, Ernst and I attended, but the EPA is doing something different. Nobody there agreed to this and, once again, the EPA is asking us to trust them to do the right thing. Like a lot of Nebraskans, I am skeptical about how the EPA is going to implement this.”



Ricketts Comments on EPA’s 2020 RFS Blending Levels

Today, Governor Pete Ricketts issued the following statement after the U.S. Environmental Protection Agency’s (EPA’s) release of the final rule setting the 2020 renewable fuel blending levels under the federal Renewable Fuel Standard (RFS).

“Today’s announcement from the EPA does not include the structural changes we requested in our comments on the draft rule,” said Governor Ricketts.  “President Trump has promised 15 billion gallons, and we will be watching closely to see how the EPA enforces the final rule to ensure this level is blended as required by law.  We will hold the EPA’s feet to the fire if they fall short of delivering on the President’s promise of 15 billion gallons to our farm families.”



Statement by Steve Nelson, President, Regarding EPA Announcement of Renewable Fuels Standard (RFS) Blend Volumes

“While EPA claims this new rule will ensure the agency meets the Congressionally mandated goal of blending 15 billion gallons of biofuels into our nations fuel supply in 2020, we still have great concerns about EPA having previously granted an excessive number of waivers relieving oil refiners of their legal obligations to blend biofuels. We are disappointed EPA did not incorporate changes Nebraska Farm Bureau had requested to improve EPA’s accounting of the allowable volume of exemptions. By not making those changes EPA is asking us to trust they will meet the blend target. With that said, we are in the ‘trust but verify’ mode and remain committed to ensuring that 15 billion gallons of blended biofuels as mandated by Congress translates to 15 billion gallons of blended biofuels.”



Iowa Corn Farmers Cheated out of a Good Farm Economy Due to RFS Abuse

The abuse of the Renewable Fuel Standard (RFS) continues as the Environmental Protection Agency (EPA) released today the final 2020 Renewable Volume Obligation (RVO) that does not reflect the deal President Trump agreed to on October 4, 2019.  The finalized rule incorporates the Wheeler plan that merely estimates future small refinery waivers based on the Department of Energy’s (DOE) recommendations. ICGA supports a simple, mathematical solution by averaging the past three years of actual waivers granted, then adding those gallons back into the RFS. ICGA’s supported resolution would have created market certainty, so as not to rely on the EPA or DOE Administrators for their annual decisions.

“Apparently President Trump doesn’t care about his promise to Iowa’s farmers. He had the opportunity to tell his EPA to stick to the deal that was made on October 4,” said ICGA President Jim Greif. “I can say for certain that ICGA pushed for a positive outcome, and we didn’t go down without a fight.”

“The Environmental Protection Agency seems to be more concerned with politics than cleaner-burning, healthy air with renewable fuels. It was as simple as following the original October 4 agreement with our elected officials and here we are with empty promises and no market certainty,” said Kelly Nieuwenhuis, ICGA member from Primghar and Chair of the Iowa Corn Industrial Usage and U.S. Production committee.

During the comment period for the supplemental rule, ICGA sent out two calls to action with one directed at the EPA and the other at the President. Altogether the calls to action gathered over 1,000 farmer comments. Additionally, ICGA held a press conference along with other biofuels groups, worked with our entire delegation of public leaders, as well as attended roundtables, townhall meetings and EPA’s public hearing in Ypsilanti, MI. The final push was a meeting by ICGA with the Director of the U.S. National Economic Council, Larry Kudlow, at the White House earlier this week.

ICGA extends a thank you to each Iowa Corn member, farmer, ethanol supporter, and our public officials who have worked diligently together with Iowa’s corn farmers to maintain the critically important RFS.

“On behalf of Iowa Corn Growers Association members, we are frustrated with this lack of interest in defending markets for ethanol and renewable fuels. ICGA will not stop fighting for market access for corn in all forms,” said Greif.



EPA's RVO Ruling Hurts America's Heartland

Iowa Secretary of Agriculture Mike Naig issued the following statement in response to the EPA’s final rule on the Renewable Volume Obligations (RVOs) for 2020 and biomass-based diesel volume for 2021.

“I’m disappointed the EPA chose to ignore the concerns voiced by renewable fuels producers, farmers and consumers. The flawed formula used to account for waived gallons creates unnecessary uncertainty in our markets, detrimental to so many across rural America,” said Secretary Naig. “We must continue to work together to hold the EPA accountable for ensuring the 15 billion gallons mandated by the Renewable Fuels Standard are met. We must also continue to invest in infrastructure that builds demand and increases the availability of higher blends of biodiesel and ethanol across the state of Iowa.”

The Iowa Department of Agriculture and Land Stewardship administers the Iowa Renewable Fuel Infrastructure program, which offers cost-share grants to help fuel retailers install infrastructure to increase the availability of ethanol and biodiesel. Secretary Naig has requested $3 million in the fiscal year 2021 to continue supporting the program. To date, the program has distributed or obligated over $33 million with $200 million added in private economic activity. This translates to every dollar invested in Renewable Fuel Infrastructure funding, nearly six dollars of private investment has resulted.



NCGA: Corn Farmers Underwhelmed by Final RVO Rule

National Corn Growers Association (NCGA) President Kevin Ross today made the following statement on the release of the Environmental Protection Agency (EPA) final 2020 Renewable Volume Obligation (RVO) rule, setting renewable fuel volume requirements for the coming year, including accounting for 2020 refinery waivers. The final rule uses a three-year average of the Department of Energy (DOE) recommended waivers as an estimate for 2020 waivers rather than an average of actual gallons waived by the EPA.

“The Administration has chosen to move forward with a final rule that corn farmers believe falls short of adequately addressing the demand destruction caused by EPA’s abuse of RFS refinery waivers. While using the DOE recommendations to account for waivers is an improvement over the status quo, it is now on corn farmers to hold the Administration to their commitment of a minimum of 15 billion gallon volume, as the law requires. We will use future rulemakings and other opportunities to hold the EPA accountable.”



Growth Energy says more action needed by EPA to restore biofuel growth

Growth Energy, the nation’s largest ethanol association, today called for the Environmental Protection Agency (EPA) to take further action to restore growth under the Renewable Fuel Standard (RFS) after the agency released its final 2020 biofuel targets. While the final rule provides an uptick in federal biofuel targets and signals an intent to account for demand lost to oil refinery exemptions, Growth Energy stressed that the agency must enforce those volumes by accounting for exemptions accurately and that EPA Administrator Wheeler must take additional steps to uphold the administration’s October 4th commitments to rural America.

“President Trump pledged to deliver certainty and stability for America’s farmers and biofuel producers by restoring integrity to the RFS,” said Growth Energy CEO Emily Skor. “While we’re encouraged that EPA is finally taking steps to follow the law and account for biofuel demand lost to secretive oil refinery exemptions, this rule leaves important work unfinished.

“Integrity is restored to the RFS only if the agency accurately accounts for exemptions it will grant. The rule uses an accounting formula based on Department of Energy recommendations, which EPA has a poor track record of following. All eyes will now be on EPA’s next round of refinery exemptions and future targets, which will signal whether Administrator Wheeler is truly committed to ending demand destruction.

“Additionally, Administrator Wheeler must act swiftly to break down remaining market barriers to E15 as promised in the October 4th EPA announcement. When the RFS is working as intended and government has eliminated market access barriers, drivers across the nation will able to take full advantage of the administration’s move to unleash sales of E15 year-round.”

“We are grateful to all our champions who have worked tirelessly to restore growth under the RFS, and we look forward to working with them in the year ahead to restore the biofuels market for America’s struggling farmers and biofuel producers.”



RFA: EPA Rule Won’t Prevent Further RFS Erosion by Waivers

The Renewable Fuels Association today expressed disappointment in the Environmental Protection Agency’s final rule for 2020 Renewable Fuel Standard blending requirements, arguing that the rule opens the door for small refinery exemptions (SREs) to continue eroding RFS volumes and destroying demand for America’s biofuel producers and farmers.

“After EPA’s overwrought abuse of the SRE program in recent years, agency officials had a chance to finally make things right with this final rule—but they blew it,” said RFA President and CEO Geoff Cooper. “EPA’s rule fails to deliver on President Trump’s commitment to restore integrity to the RFS, and it fails to provide the market certainty desperately needed by ethanol producers, farmers, and consumers looking for lower-cost, cleaner fuel options. While the final rule is an improvement over the original proposal, it still does not guarantee that the law’s 15-billion-gallon conventional biofuel blending requirement will be fully enforced by EPA in 2020.”

According to the rule released today, EPA will project SRE volumes based on historical Department of Energy (DOE) recommendations, rather than the actual volume of SREs issued by EPA. Ironically, however, EPA has generally chosen to ignore DOE’s recommendations regarding SRE petitions in recent years. For the 2016-2018 compliance years, the volume of required renewable fuel blending waived by EPA was almost double the amount recommended by DOE.

“After doing the exact opposite in recent years, EPA is now suggesting it will follow DOE’s recommendations on 2020 SRE petitions,” Cooper said. “So, now the waiting game begins. We’ll have to wait with bated breath until at least the spring of 2021 to see whether EPA truly makes good on its promise to follow DOE recommendations on 2020 SREs.”

In the meantime, RFA will be keeping a close eye on EPA’s handling of the 2019 SRE petitions, 10 of which have already been received by the agency. “With historically low RIN credit prices, record high RIN stocks, and ample supplies of low-cost ethanol available, it will be difficult—if not impossible—for refiners to claim they need a ‘hardship’ exemption for 2019,” Cooper said. “Still, EPA’s approach to the 2019 SRE petitions will probably be a pretty good indicator of whether the agency is truly interested in following DOE recommendations and exercising more restraint and judiciousness moving forward.”

RFA also urged the Administration to expeditiously move ahead on the other elements of the biofuels package announced by EPA on October 4, including streamlining E15 labeling requirements, removing other barriers to the sale of E15, addressing ethanol trade barriers, and launching a program to expand infrastructure for higher ethanol blends.

“Offsetting the RFS volumes lost to SREs was only one piece of the plan promised by the President and rolled out by EPA in October,” Cooper said. “And while the plan released by EPA today for addressing SREs doesn’t go nearly far enough, the ethanol industry is eager to work with EPA and USDA to quickly implement the other relief measures included in the package.”



ACE: EPA’s final 2020 RFS rule fails to uphold the President’s biofuel deal

Today, the Environmental Protection Agency (EPA) issued its final Renewable Volume Obligations (RVOs) for the 2020 Renewable Fuel Standard (RFS) along with its finalized supplemental rulemaking that addresses how the Agency will handle the Small Refinery Exemption (SRE) provision in the program moving forward. American Coalition for Ethanol (ACE) CEO Brian Jennings issued the statement below in response:

“Over the course of the past few months, we’ve gone from promises of a ‘giant package’ to the reality of a lump of coal. To say we are disappointed is an understatement. While it was well understood this rulemaking would not make farmers and the ethanol industry ‘whole’ for the damage EPA has done by abusing the small refinery exemption provision of the RFS, we were led to believe the rule would represent a step in the right direction, an opportunity to account in a meaningful way for refinery waivers.

“We are forced yet again to continue defending the RFS and fighting EPA’s mismanagement of the program in the third branch of government, but this is another painful reminder our industry needs to go on offense with a new plan to increase demand on ethanol’s low carbon and high octane advantages.”



NBB Disappointed with Lack of Growth in 2020 RFS Volumes

The National Biodiesel Board (NBB) today expressed its disappointment with the Environmental Protection Agency’s final rule for the 2020 Renewable Fuel Standard. The rule maintains the 2020 overall advanced volume and 2021 biomass-based diesel volume at the same levels as the current year, blocking growth for the biodiesel industry. The rule also finalizes a method that underestimates future small refinery exemptions, counting only half of the exempted volumes actually granted over the past three years.

Kurt Kovarik, NBB’s VP of Federal Affairs, stated, “EPA’s final rule for the 2020 RFS volumes is simply out of step with Congressional intent and President Trump’s promises. This week, Congress and the president are extending the biodiesel tax incentive through 2022 and sending an unmistakable signal that they support continued growth of biodiesel and renewable diesel. At the same time, EPA Administrator Wheeler is doing everything he can to block that growth.”

EPA sets the overall advanced biofuel volume for 2020 at 5.09 billion gallons, providing growth only for cellulosic biofuel. Other advanced biofuels, such as biodiesel and renewable diesel, received no additional market space. EPA maintains the 2021 biomass-based diesel volume at 2.43 billion gallons, the same volume as for 2020.

Kovarik continued, “Despite his statement to the press, Administrator Wheeler’s method for estimating future small refinery exemptions does not provide assurance to the biodiesel and renewable diesel market. The best estimate of future exemptions is an average of the 38 billion gallons exempted over the past three years. Even if EPA had included that estimate, though, there is nothing in today’s rule to ensure that the agency will get these exemptions under control.”

The estimate of small refinery exemptions applies equally to the overall, advanced, biomass-based diesel, and cellulosic biofuel renewable volume obligations (RVOs). While intended to ensure that the 2.43 billion biomass-based diesel volume for 2020 is fulfilled, the number of exempted volumes could still exceed EPA’s estimate.

In today’s rule, EPA defers a final determination on the U.S. Court of Appeals’ remand of the 2016 rule, in which the agency waived 500 million gallons of biofuel use. “The biodiesel industry asks EPA to fulfill the Court’s clear direction to restore the 500 million gallons from 2016. The agency has recognized that it must ensure that the RFS volumes are met. EPA must be consistent.”



Trump Breaks Promise to Rural America with Renewable Volume Obligations

The U.S. Environmental Protection Agency (EPA) today released its final renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS) for the year 2020.

As outlined in a supplemental proposed rule in October, the RVOs will account for a portion of the 4 billion gallons of demand for biofuels eliminated over the past three years due to the rampant misappropriation of small refinery exemptions (SREs). Rather than determine relief using an actual three-year average of exempted gallons, the agency has instead used much lower values recommended by the Department of Energy (DOE). The former would have increased the amount of biofuels in the transportation sector by approximately 1.35 billion gallons per year, while the latter will increase it by just 770 million gallons.

National Farmers Union (NFU), a strong proponent of biofuels and the RFS, was disappointed with EPA’s proposal when it was first released and urged the agency to account for all 4 billion gallons worth of demand in the final rule. In a statement, NFU Vice President of Public Policy and Communications Rob Larew restated the organization’s mounting frustration with the administration’s destructive approach to biofuels policy:

“Family farmers are sick and tired of this biofuels bait and switch. Long before he was elected, President Trump promised to support the American ethanol industry, yet his EPA has done nothing but undermine its success. By indiscriminately granting so-called “hardship exemptions” to multi-billion-dollar oil corporations, this administration has cost hardworking family farmers billions of dollars in lost sales, eliminated thousands of jobs, and slowed economic growth in rural communities across the country.

“In response to farmers’ appropriate anger, President Trump made another promise to undo the needless damage caused by the EPA – yet another promise he hasn’t kept with today’s RVOs. This meager solution falls significantly short of the relief the biofuels industry needs to recover from three years of outright sabotage.

“How many more times must family farmers endure broken promises and disappointment? If this administration intends to make amends, it will not only compensate for all 4 billion gallons of demand lost to small refinery exemptions – it will also aggressively promote the widespread adoption of biofuels by replacing gasoline aromatics with ethanol and expanding the use of higher level blends of ethanol.” 

Wednesday December 18 Ag News

Numbers reflect strong first semester for Nebraska Agriculture in the Classroom

Nebraska Agriculture in the Classroom (AITC), a program of the Nebraska Farm Bureau Foundation, headed back to school this fall with new, grade-specific lessons and activities for Nebraska teachers. AITC has a long history of creating resources tied to state education standards to assist teachers in connecting students to their source of food, fiber, and fuel – agriculture!

“Sensing a growing demand for our programming in the last couple of years, we added an educator to our team last summer,” said Megahn Schafer, executive director. “This fall, we had the opportunity to test that demand, and we are thrilled with the response to our increased offerings.”

Classroom visits provide students with opportunities to develop an awareness that agriculture is their source of food, clothing, and shelter. In the first semester of 2019-2020, 4,058 students from 208 classrooms participated in a hands-on lesson, up from 120 classrooms in the entire 2018-19 school year.

Teacher Lori Gladson at Belleaire Elementary in Omaha reported, “The (classroom visit) program encouraged interest and curiosity about agriculture and careers in agriculture. Engaging!”

Students learned more about their connection to agriculture during Virtual Field Trips (635 students from 31 classrooms), ag festivals (4,427 students at 5 festivals), and school and community events (1,373 students at 6 events).

Teacher engagement is another priority for Nebraska Agriculture in the Classroom. To date this school year, 200 current and future teachers have participated in the workshop led by the foundation’s director of outreach education, Courtney Schaardt. Schaardt led training at Doane University, the Nebraska After-School Conference, Peru State College, Creighton University, York College, and the University of Nebraska-Kearney.

Participant Kristin Collins said, “I am going to be a first-year social studies teacher and this course gave me a lot of great resources to work into the curriculum. I plan to use the lesson plans, interactive maps, and AgMag.” Collins now teaches fourth through sixth grade at Bayard Public Schools.

While classroom participation the first semester has exceeded expectations, the Nebraska Agriculture in the Classroom team aims for more growth this spring. New projects include “Hello, Gus,” a contest for classes to submit a photo of them with a paper steer showing how they are incorporating agriculture into their classroom. Signup for the Agriculture Reading Hour program is now open, and hundreds of volunteers will read and donate the book “Right This Very Minute” in local schools. For National Ag Week in March, staff have created book marks, placemats, and a coloring page for distribution across Nebraska. This summer, foundation staff will team up with Lincoln Public Schools to host a national expert on new science education standards for a teacher workshop that will include farm tours and the creation of new agriculture-based lessons for high school.

“For our team, it is a privilege to bring awareness to Nebraska agriculture. In a year when many rural Nebraskans are facing extraordinary challenges, we know it is more important than ever for all Nebraskans to understand the work of farm and ranch families and their contributions to our great state,” said Schafer.

Agriculture in the Classroom® is a program coordinated by the United States Department of Agriculture through the National Agriculture in the Classroom Organization. In Nebraska, the Agriculture in the Classroom program is managed by the Nebraska Farm Bureau Foundation.



Land transition workshop set in Fremont

The Center for Rural Affairs is hosting a free workshop for aspiring farmers, people who own or co-own more than 40 acres, may have inherited farmland, or are experiencing transition with farmland they own.

“Managing for the Future: Beginning Farms and Land Transitions” will be on Thursday, Jan. 9, 2020, from 5:30 to 7:30 p.m., at the Presidential Dining Rooms in the Midland University Dining Hall, 900 N. Pebble St., Fremont, Nebraska 68025.

“The workshop is designed for landowners and beginning farmers who are experiencing a variety of decisions on topics that will impact the long-term futures of both their families and finances,” said Justin Carter, project associate at the Center for Rural Affairs. “These decisions are overwhelming and the answers are not always easy to find, so we’ve created this workshop to help connect resources.”

Presentations and landowner discussions will be facilitated by Dave Goeller, retired deputy director of North Central Extension Risk Management Education Center at the University of Nebraska-Lincoln and resource provider at Nebraska Rural Response Hotline.

Beginning farmer discussions will be led by Kirstin Bailey, project associate at the Center for Rural Affairs.

Refreshments will be provided. To register, contact Carter at justinc@cfra.org or 402.687.2100 ext. 1018. Visit cfra.org/events for more information.



Dry Manure Applicator Certification Workshops Offered in February

Iowa State University Extension and Outreach, in cooperation with the Iowa Department of Natural Resources, will offer manure applicator certification workshops for dry/solid manure operators on six different dates and locations in February. These workshops meet manure applicator certification requirements for both confinement site manure applicators and commercial manure applicators who primarily apply dry or solid manure.

“The information in this workshop will benefit not only those needing certification, but anyone using dry or solid sources of manure as a nutrient resource,” said Dan Andersen, ISU Ag and Biosystems Engineering assistant professor and coordinator of the manure applicator certification program.

Register for one of the workshops by calling the number listed with the selected site. All workshops begin at 1 p.m.
    Feb. 10, Adair County, Warren Cultural Center, Greenfield. Call 641-743-8412.
    Feb. 11, Wright County, Heartland Museum, Clarion. Call 515-532-3453.
    Feb. 17, Washington County Extension Office, Washington. Call 319-653-4811.
    Feb. 18, Sioux County Extension Office, Orange City. Call 712-737-4230.
    Feb. 19, Buena Vista County Extension Office, AEA Office, Storm Lake. Call 712-732-5056.
    Feb. 24, Hamilton County, Kamrar Lions Community Building, Kamrar. Call 515-832-9597.

The workshops are free to attend and open to all. Applicators will be required to submit certification forms and fees to the Iowa DNR to meet manure applicator certification requirements.



Indonesia: Latest Country to Get ASF
National Pork Board

The spread of African swine fever (ASF) continues across much of Asia. The minister of agriculture for Indonesia announced the confirmation of the country’s first outbreak of ASF in its North Sumatra province (far northwest part of multi-island nation) on Dec. 12. The official announcement is not unexpected since reports of increased pig mortality have come from this province and others since late September. Even though the majority of Indonesians practice Islam, more than 80% of the people living on the tourist island of Bali identify as Hindu and consume pork.

The United Nation’s Food and Agriculture Organization (FAO) is coordinating with Indonesia’s directorate general of Livestock and Animal Health Services. The nation’s animal health director requested that the FAO provide recommendations on containment and control of the virus, which the organization is doing.

U.S. Research Shows Promise in Race to Create Effective ASF Vaccine
In a recently published research paper, a team of USDA researchers at the Plum Island Animal Disease Center reported new-found optimism that the long road to an effective ASF vaccine is getting shorter.

Douglas Gladue, a senior USDA researcher, is among the group of researchers working on developing an ASF vaccine. He says this vaccine candidate was made by using a mutation of the wild 2007 ASF virus isolate from the Republic of Georgia, which is the origin of the current ASF outbreak in Asia and Europe. The breakthrough came when he and the other researchers deleted a single gene in the virus’ genome, known as I177L. By doing so, the live virus offers full protection against the current outbreak strain.

Gladue reported that pigs receiving the experimental vaccine remained clinically normal during a 28-day observation period. Also, infected animals had low levels of viremia titers, showed no virus shedding and developed a strong virus-specific antibody response. Most importantly, vaccinated animals were protected when challenged with the virulent parental strain of the Georgian virus, the only candidate to ever show this ability.

While admitting there’s still much work to do before government approvals and commercialization could happen, Gladue says the next step is to locate a commercial partner to do additional vaccine testing in larger sample sizes.

ASF Present in Over 50 Countries
When it comes to African swine fever (ASF), today it seems it’s almost easier to say where the virus isn’t present. According to the World Health Organization (OIE), more than 40 countries have reported the deadly virus either in wild or domestic pigs during the past five years (It’s over 50 countries without this caveat). Of course, not all of these countries are significant pork producers, but the diversity of ASF’s geographic spread shows how easily the virus can spread.

Countries where ASF has been found:  Belgium, Benin, Burkina Faso, Bulgaria, Burundi, Cabo Verde, Cambodia, Cameroon, Central African Republic, Chad, China, Congo, Cote D'Ivoire, Czech Republic, Estonia, Gambia, Ghana, Guinea-Bissau, Hungary, Indonesia, Italy, Kenya, Laos, Latvia, Lithuania, Madagascar, Malawi, Moldova, Mongolia, Mozambique, Myanmar, Namibia, Nigeria, Philippines, Poland, Romania, Russia, Rwanda, Senegal, Serbia, Sierra Leone, South Africa, South Korea, Slovakia, Tanzania, Timor-Leste, Togo, Uganda, Ukraine, Vietnam, Zambia, Zimbabwe.



November Milk Production in the United States up 0.5 Percent

Milk production in the United States during November totaled 17.4 billion pounds, up 0.5 percent from November 2018 according to USDA.  Production per cow in the United States averaged 1,869 pounds for November, 15 pounds above November 2018.  The number of milk cows on farms in the United States was 9.33 million head, 27,000 head less than November 2018, but unchanged from October 2019.



DAP Leads Retail Fertilizer Prices Lower

Retail fertilizer prices continue to be lower, according to prices tracked by DTN for the second week of December 2019, continuing a trend that's been in place for several months.  All eight of the major fertilizers were lower in price from the month earlier, but none were statistically notable. DTN designates a significant price change as a move of 5% or more.

DAP had an average price of $445/ton, down $12; MAP $463/ton, down $2; potash $378/ton, down $4; urea $380/ton, down $8; 10-34-0 $470/ton, down $3; anhydrous $489/ton, down $7; UAN28 $241/ton, down $5; and UAN32 $276/ton, down $8.

On a price per pound of nitrogen basis, the average urea price was at $0.41/lb.N, anhydrous $0.30/lb.N, UAN28 $0.43/lb.N and UAN32 $0.43/lb.N.

Retail fertilizers are mixed in price from a year ago. MAP is now 13% less expensive, DAP is 12% lower, anhydrous is 11% less expensive, UAN32 is 9% lower, UAN28 is 8% lower and urea is 7% less expensive from last year at this time. In addition, potash is 1% higher and 10-34-0 is 3% more expensive compared to last year.



Corn Farmers to Congress: Pass USMCA!
   
National Corn Growers Association members this week traveled to Washington, D.C. to make a final push for passage of the U.S.-Mexico-Canada Agreement (USMCA) in the House of Representatives. House passage before the end of the year would provide some certainty to farmers facing challenging times and instill confidence in other important trading partners that the United States is open for business.

NCGA members shared with lawmakers the importance of USMCA for corn farmers. Mexico and Canada are the U.S. corn industry’s largest, most reliable market. In 2018, 21.4 million metric tons of corn and corn co-products were exported to Mexico and Canada, valued at $4.56 billion.

The NCGA members also met with members of the U.S. Senate, urging they quickly consider and pass USMCA in the new year. Corn farmers cannot afford to lose this North American market which is why it is so important USMCA be ratified.



Biodiesel, Soybean Leaders Ask President to Improve 2020 RFS Rule

Today, 24 state and national trade associations representing soybean growers and biodiesel producers delivered a letter to President Donald Trump, asking that he direct the Environmental Protection Agency (EPA) to do more in the 2020 Renewable Fuel Standard final rule to repair the harm done by small refinery exemptions.

The associations write in the letter, "EPA's small refinery exemptions dealt a severe blow to the biodiesel industry; the agency should therefore help the industry recover. The industry is capable of continued sustainable growth of several hundred million gallons every year. We ask that you direct EPA in the forthcoming final rule to expand the requirement for biomass-based diesel for 2021 and include the best estimate of exempted gallons, based on an average of actual past exemptions."

The EPA granted 85 small refinery exemptions for 2016, 2017 and 2018, exempting more than 38 billion gallons of petroleum fuel from the RFS requirements. The exemptions destroyed demand for more than 4 billion gallons of renewable fuel -- including biodiesel and renewable diesel -- which undermines demand for soybean oil and price support for soybeans. Ten biodiesel producers have closed or slashed production due to the loss of demand.

"The reality is that farm income this season is still one-third below what it was in 2013. Soybean prices and sales continue to fall due to the market disruptions," the associations write. "EPA's proposal for the 2020 RFS and estimate of small refinery exemptions is not a strong enough signal to the crop market. Increased biodiesel and renewable diesel production could help put the soybean market back on track by adding significant value – around 11% – to every bushel of soybeans."

Kurt Kovarik, NBB's VP of Federal Affairs, adds, "The EPA must ensure that the biomass-based diesel volumes set in annual rules are fully met. The agency should include in the annual standard the best estimate of future exemptions, based on an average of the 38 billion gallons exempted over the past three years. But the agency can do more to help the industry rebuild and support markets for U.S. agriculture. EPA should include increased volumes for advanced biofuels and biomass-based diesel."



Weekly Ethanol Production for 12/13/2019

According to EIA data analyzed by the Renewable Fuels Association for the week ending Dec. 13, ethanol production decreased 8,000 barrels per day (b/d), or -0.7%, to 1.064 million b/d—equivalent to 44.69 million gallons daily. However, the four-week average ethanol production rate increased for the ninth consecutive week, rising 0.8% to 1.064 million b/d, equivalent to an annualized rate of 16.31 billion gallons.

Ethanol stocks edged 0.1% lower to 21.8 million barrels. Inventories were 8.7% lower than the same week last year. Stocks declined in all regions except the East Coast (PADD 1) and Rocky Mountains (PADD 4).

There were zero imports of ethanol recorded after 66,000 b/d hit the books the prior week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of October 2019.)

The volume of gasoline supplied to the U.S. market popped 6.0% higher to 9.411 million b/d (395.26 million gallons per day, or 144.27 bg annualized). Refiner/blender net inputs of ethanol followed, up 6.3% to 912,000 b/d—equivalent to 13.98 bg annualized.

Expressed as a percentage of daily gasoline demand, daily ethanol production declined to 11.31%.



RFA Technical Expert to Lead Safety Coalition
   
Missy Ruff, director of safety and technical programs for the Renewable Fuels Association, was selected to chair the executive committee of the National TRANSCAER Task Group, the managing body for initiatives undertaken by TRANSCAER, a national outreach effort that has focused on assisting communities prepare for and respond to possible hazardous material transportation incidents. She assumes this key leadership role on January 1.

“This is a well-deserved honor for Missy, and she will be an outstanding chair for the National TRANSCAER Task Group executive committee,” said RFA President and CEO Geoff Cooper. “The fact that she was elected to this position by her peers is a real tribute to Missy’s character, leadership abilities, and expertise. Missy’s efforts continue to play an instrumental role in ensuring the ethanol industry maintains its impeccable safety record. We are very proud of her accomplishments and her service to the industry.”

At RFA, Ruff leads the association’s award-winning safety initiatives and assists with numerous technical and regulatory initiatives, including rail issues. In addition to her work with TRANSCAER, she has planned and executed hundreds of ethanol safety seminars and workshops across the country, training thousands of attendees. Ruff also works closely with state and federal agencies, industry partners, emergency responders, consumers, petroleum marketers and retailers among others.

In June, she received the 2018 TRANSCAER Chairman’s Award, given to a TRANSCAER team member who has contributed above and beyond the normal call of duty to advocate, demonstrate and implement TRANSCAER’s principles.

TRANSCAER members include volunteer representatives from the chemical manufacturing, transportation, distribution, hazardous material storage and handling, emergency response and preparedness, and related service industries as well as the government. The TRANSCAER acronym stands for Transportation Community Awareness Emergency Response.



Colorado State University establishes innovative Sustainable Livestock Systems Collaborative

In a move to address the dramatic global demand for safe, high-quality protein-based food sources, Colorado State University has announced the creation of a first-of-its-kind collaborative to support profitable, sustainable and healthy livestock production.

The Sustainable Livestock Systems Collaborative is designed for CSU livestock and animal health experts to work alongside industry, government and other stakeholders in addressing 21st-century challenges as well as training current and future livestock industry professionals.

Spearheaded by the College of Agricultural Sciences and the College of Veterinary Medicine and Biomedical Sciences, the collaborative will look at enhancing sustainable and healthy livestock systems through the examination of new technologies and disease treatments as well as soil, plant, animal and atmospheric microbiomes, among other areas.

CSU has tapped into expertise from across the university as well as industry in the design of the Sustainable Livestock Systems Collaborative. This includes the Colorado Beef Council, Colorado Cattlemen’s Association, Colorado Farm Bureau and the Colorado Livestock Association as well as the Warner College of Natural Resources, the School of Global Environmental Sustainability, and CSU Extension.

As part of the initiative, CSU has launched a national search for a director who will lead a cadre of new faculty members in areas such as epidemiology, meat science, infectious disease, diagnostics, nutrition and livestock production. The new director, who will oversee the collaborative, is expected to be on board this summer, with as many as a dozen faculty members to be hired over the next four years.

“This new university center of excellence represents a unique collaboration between multiple areas within the university, government and industry partners to help support advances in livestock health and sustainability,” said CVMBS Dean Mark Stetter. “We recognize that agriculture is a key economic driver in Colorado and that, as the state’s land-grant university, we need to be a national leader in discovering new ways to help feed the nation and the world.”

James Pritchett, interim dean of the College of Agricultural Sciences, added that the Sustainable Livestock Systems Collaborative works hand-in-hand with the 21st-century land-grant mission.

“The collaborative is an intentional and impactful collection of scientists, educators and industry professionals all aligned to meet society’s greatest challenges,” he said. “We are using innovation and creativity to pose important questions, co-create science with diverse partners at the table, and then ensure that all have an opportunity to enjoy the benefits of our shared endeavors. It’s knowledge creation at its best. Success is not only answering the questions of today but is also building a nimble and adaptive collection of talent to meet tomorrow’s challenges.
 
21st-century challenges
With the United Nations projecting a global population of 12.3 billion people by 2100, the Sustainable Livestock Systems Collaborative will take aim at finding sustainable and profitable solutions for feeding the world.

Dr. Susan VandeWoude, associate dean for research in the College of Veterinary Medicine and Biomedical Sciences, said the collaborative will produce practical research and training into how agriculture will be conducted in the next century while also taking into consideration environmental and production stresses and technological advancements.

“CSU is committed to contributing evidence-based knowledge in support of sustainable livestock production because it’s critical for the future of the livestock industry,” said VandeWoude, a leadership team participant who has spearheaded the collaborative’s development. “We are very committed and open minded to using all of the resources of the land-grant university.”

The committee that helped take the Sustainable Livestock Systems Collaborative from a recommendation to reality is composed of more than two dozen individuals.

“CSU is committed to contributing evidence-based knowledge in support of sustainable livestock production because it’s critical for the future of the livestock industry,” said VandeWoude, a leadership team participant who has spearheaded the collaborative’s development. “We are very committed and open minded to using all of the resources of the land-grant university.”

The committee that helped take the Sustainable Livestock Systems Collaborative from a recommendation to reality is composed of more than two dozen individuals.

In addition to Pritchett, Stetter and VandeWoude, the steering committee includes Keith Belk, head of the Department of Animal Sciences; Jan Leach, associate dean for research in the College of Agricultural Sciences; Wayne Jensen, head of the Department of Clinical Sciences; and Ajay Menon, the former College of Agriculture dean who now serves as president and CEO of the CSU Research Foundation.

“We’re trying to envision what society’s problems will be,” said Belk, who is leading the search for the collaborative’s director. “As the population continues to grow and as land and water become more valuable resources, we have to figure out how we are going to still produce enough food for up to as many as 12.3 billion people by the year 2100.”

Both Belk and VandeWoude stressed the importance of closely working with the livestock industry to provide research and training that meets its needs.

VandeWoude said CSU Extension will play a critical role in providing outreach and engagement with the livestock community in sharing research and information from the collaborative. She added that the collaborative will bolster educational opportunities for students interested in livestock and equine sciences — animals which the profession of veterinary medicine is rooted in serving.

“This is going to be a significant expansion of our expertise in livestock and production systems,” VandeWoude said.

Potential focus areas for Sustainable Livestock Systems Collaborative
    Veterinary epidemiology
    Spatial modeling of disease transmission and spread across landscape levels
    Livestock and dairy systems analysis for productive efficiency, animal health and environmental sustainability
    Risk management and profitability analysis for livestock and dairy at the enterprise, farm, and macroeconomic levels
    Innovation in livestock and dairy production and health monitoring using novel technologies
    Innovative training programs for undergraduate, veterinary professional, and post-graduate students
    Microbiome interactions at the soil, plant, animal, and atmospheric levels
    Food safety and livestock and dairy production system interactions
    Livestock and dairy welfare and behavior in production systems



A strong finish to the year
Stephen R. Koontz, Dept of Ag and Resource Economics - Colorado State University

Without a doubt, the cattle markets are closing the year far stronger than I expected. Live cattle futures have pushed into new highs and cash fed cattle prices are back to tracking the price levels and seasonal patterns of last year. There were some unique market drivers that I discussed last month. Most are still present, are not typical, and are worth talking through again.

The market has handled the steady seasonal climb in fed animal dress weights, continues to move fed animals in a timely manner, the packing sector continues to run substantial Saturday slaughter, and we are on the cusp of Tyson's Holcomb facility returning to substantial operations. Packer margins are softer but remain above $400 per head and atypically retailer beef margins continued to shrink. I see the retailer and food service as driving the strength into this cattle and beef market.

The boxed beef composite value increased almost $30/cwt in a three-week period prior to Labor Day and repeated that performance in the five weeks prior to Thanksgiving. The composite value at both peaks was an impressive $240/cwt. Loin prices barely moved but ribeye and tenderloin prices were a third higher than summer. Chucks, rounds, and lean hamburger trimming prices were also very strong. And all this in September, October, and November when beef supplies are substantial as are supplies of other proteins. Almost all news was positive except for the Choice-Select spread which showed its first weakness of the year declining to a seasonally strong $17/cwt. Again, this is the first real decline of the year. This is after spending most of the summer and fall above $22/cwt. The Choice-Select spread has normal seasonal strength in spring months when Choice supplies are tightest and then as supplies increase over summer the spread will decrease. The recent decline is the only weakness in a beef product market that has shown much atypical strength in the last two quarters of the year.

Cash fed cattle prices have returned to price levels observed in the fall and early winter last year along with expected seasonal patterns. Feeder cattle on the other hand have not followed behavior in downstream product markets with the fall run of animals. Only recently have feeder animal and calf prices creeped above that of the spring. Optimism is rather abundant though.



R-CALF USA To Cattle Producers: Congress and the President Are Failing America's Ranchers

At a meeting held yesterday, R-CALF USA CEO Bill Bullard told Polo, South Dakota area cattle producers that both Congress and the President are failing America's ranchers by supporting the United States-Mexico-Canada Agreement (USMCA), which he said is certain to accelerate the destruction of the American cattle industry as we know it today.

In a presentation titled "Why America is Losing Its Ranches," Bullard provided detailed charts produced from U.S. Department of Agriculture (USDA) data that show that the 25-year-old NAFTA has systematically dismantled the industry's competitive marketing channels, meaning the critical infrastructure needed to sustain industry competition.

He cited unsettling industry trends that developed under NAFTA as specific evidence that NAFTA has seriously weakened the U.S. cattle industry, which is the largest segment of American agriculture. He cited the fact that NAFTA eliminated 20% of America's cattle producers, eliminated about 7 million cattle from America's cattle herd, eliminated 25% of U.S. livestock auction yards, eliminated 48 meatpacking plants, eliminated 75% of all U.S. cattle feedlots, and created a $1.4 billion annual trade deficit in the trade of cattle and beef with Canada and Mexico.

"This means the U.S. cattle industry has lost the critical mass of critical market infrastructure it needs to absorb the shocks of another bad trade agreement. America's cattle industry is now far more susceptible to price depressing, cheaper and undifferentiated imports than it was when NAFTA was first implemented.

"This means the passage of the USMCA will likely be the straw that breaks the camel's back, and in this instance, the straw that breaks the one industry that is most important to America's rural economy," Bullard said.

Bullard explained that this is the reason the USMCA will have a far more disastrous impact on the U.S. cattle industry than was caused by the original NAFTA.

Just prior to the meeting, R-CALF USA issued an action alert to its thousands of cattle-producing members urging them to call their U.S. Representatives to tell them to vote "No" on the USMCA unless Congress first affords them with the reinstatement of mandatory country-of-origin labeling (COOL) for beef.

Bullard said that only with mandatory COOL can America's ranchers even begin to compete with the growing volumes of price-depressing, cheaper and undifferentiated foreign cattle and beef that the USMCA will cause to be imported into the U.S. market.

"This is serious, and we must tell Congress that they must now choose to either continue supporting the financial interests of self-serving, multinational corporations by supporting the USMCA, or begin supporting American consumers and American ranchers. So far they are failing us all," Bullard concluded.



Three must-haves to minimize fresh cow stress, help build immunity
Michele Barrett, DVM, U.S. Dairy Technical Services, Zoetis

It’s no secret that keeping fresh cows healthy can help improve production, but managing cow comfort can prove challenging in stressful environments.

During the fresh period, cows’ energy requirements often exceed their dry matter intake, creating a negative energy balance that can impact their immune system. Pen moves, especially to the hospital pen, also can affect fresh cows’ health by exposing them to disease-causing pathogens and prompting stress-related decreases in appetite.

While these stressors are hard to avoid, they can put fresh cows at a greater risk for developing metritis, infectious mastitis and Salmonella. A higher rate of disease in fresh cows can affect your bottom line by negatively impacting milk production and increasing treatment expenses.

Use these tips to help support fresh cows’ immune systems and minimize stress during the fresh period:
-    Maintain a healthy environment: Keep pens clean and dry to minimize vulnerable cows’ exposure to disease-causing pathogens. Also consider decreasing stocking density in the fresh pen and allow greater access to the feed bunk to help cows get the nutrition and energy they need to support immune function.
-    Reduce social stress: When cows change pens, it can take up to three days for them to re-establish social structure.4 In the meantime, sick cows impacted by social stress spend less time laying down, which can reduce their overall comfort. One way to avoid pen moves when fresh cows become sick is to choose an antibiotic with zero milk discard. This will help keep milk in the bulk tank while helping to minimize social stress.
-    Train employees to spot disease sooner: Treatment success improves when sick cows are identified earlier in the disease process. Help improve health outcomes by training your staff to watch for early signs of illness:
-        Decreased dry matter intake — check the temperature of cows that might be hanging back from the bunk to detect a possible fever
-        Dehydration — “depressed cows” with sunken, dull eyes or poor rumen fill
-        Drop in production or reduced udder fill — fresh cow udders should be full and tight