NEBRASKA CATTLE ON FEED DOWN 1%
Nebraska feedlots, with capacities of 1,000 or more head, contained 2.51 million cattle on feed on May 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 1% from last year. Placements during April totaled 445,000 head, up 3% from 2023. Fed cattle marketings for the month of April totaled 465,000 head, up 13% from last year. Other disappearance during April totaled 10,000 head, unchanged from last year.
IOWA CATTLE ON FEED UP 2%
Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 660,000 head on May 1, 2024, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was unchanged from April but up 2 percent from May 1, 2023. Iowa feedlots with a capacity of less than 1,000 head had 550,000 head on feed, up 1 percent from last month but unchanged from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,210,000 head, up slightly from last month and up 1 percent from last year.
Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during April 2024 totaled 89,000 head, down 15 percent from March and down 2 percent from April 2023. Feedlots with a capacity of less than 1,000 head placed 67,000 head, up 24 percent from March and up 22 percent from April 2023. Placements for all feedlots in Iowa totaled 156,000 head, down 2 percent from March but up 7 percent from April 2023.
Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during April 2024 totaled 87,000 head, down 6 percent from March but up 10 percent from April 2023. Feedlots with a capacity of less than 1,000 head marketed 60,000 head, up 28 percent from March and up 40 percent from April 2023. Marketings for all feedlots in Iowa were 147,000 head, up 5 percent from March and up 20 percent from April 2023. Other disappearance from all feedlots in Iowa totaled 4,000 head.
United States Cattle on Feed Down 1 Percent
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.6 million head on May 1, 2024. The inventory was 1 percent below May 1, 2023.
On Feed - by State (1,000 hd - % May 01 '23)
Colorado ......: 950 97
Iowa .............: 660 102
Kansas ..........: 2,300 94
Nebraska ......: 2,510 99
Texas ............: 2,770 99
Placements in feedlots during April totaled 1.66 million head, 6 percent below 2023. Net placements were 1.60 million head. During April, placements of cattle and calves weighing less than 600 pounds were 335,000 head, 600-699 pounds were 220,000 head, 700-799 pounds were 375,000 head, 800-899 pounds were 451,000 head, 900-999 pounds were 205,000 head, and 1,000 pounds and greater were 70,000 head.
Placements by State (1,000 hd - % April '23)
Colorado ......: 135 93
Iowa .............: 89 98
Kansas ..........: 370 88
Nebraska ......: 445 103
Texas ............: 330 89
Marketings of fed cattle during April totaled 1.87 million head, 10 percent above 2023. Other disappearance totaled 56,000 head during April, 10 percent above 2023.
Marketings by State (1,000 hd - % April '23)
Colorado ......: 170 121
Iowa .............: 87 110
Kansas ..........: 460 115
Nebraska ......: 465 113
Texas ............: 385 101
USDA Cold Storage April 2024 Highlights
Total red meat supplies in freezers were up 4 percent from the previous month but down 9 percent from last year. Total pounds of beef in freezers were down 1 percent from the previous month and down 5 percent from last year. Frozen pork supplies were up 8 percent from the previous month but down 12 percent from last year. Stocks of pork bellies were up 3 percent from last month but down 6 percent from last year.
Total frozen poultry supplies on April 30, 2024 were up 1 percent from the previous month but down 5 percent from a year ago. Total stocks of chicken were down 3 percent from the previous month and down 10 percent from last year. Total pounds of turkey in freezers were up 9 percent from last month and up 6 percent from April 30, 2023.
Total natural cheese stocks in refrigerated warehouses on April 30, 2024 were up slightly from the previous month but down 1 percent from April 30, 2023. Butter stocks were up 14 percent from last month and up 9 percent from a year ago.
Total frozen fruit stocks were down 6 percent from last month but up 9 percent from a year ago. Total frozen vegetable stocks were down 6 percent from last month and down 2 percent from a year ago.
NEBRASKA CHICKENS AND EGGS
Nebraska egg production during April totaled 203 million eggs, up from 181 million in 2023. April egg production per 100 layers was 2,414 eggs, compared to 2,426 eggs in 2023. All layers in Nebraska during April 2024 totaled 8.40 million, up from 7.46 million the previous year, according to the USDA's National Agricultural Statistics Service.
IOWA: Iowa egg production during April 2024 was 1.13 billion eggs, up 1 percent from the previous April, according to the latest Chickens and Eggs report from the USDA's National Agricultural Statistics Service. The average number of all layers on hand during April 2024 was 44.8 million, down 1 percent from last year. Eggs per 100 layers for April was 2,529, up 3 percent from a year ago.
April Egg Production Down 1 Percent
United States egg production totaled 8.93 billion during April 2024, down 1 percent from last year. Production included 7.68 billion table eggs, and 1.26 billion hatching eggs, of which 1.16 billion were broiler-type and 97.5 million were egg-type. The average number of layers during April 2024 totaled 375 million, down 2 percent from last year. April egg production per 100 layers was 2,381 eggs, up 1 percent from April 2023.
Total layers in the United States on May 1, 2024 totaled 371 million, down 4 percent from last year. The 371 million layers consisted of 305 million layers producing table or market type eggs, 61.8 million layers producing broiler-type hatching eggs, and 3.86 million layers producing egg-type hatching eggs. Rate of lay per day on May 1, 2024, averaged 79.3 eggs per 100 layers, up 1 percent from May 1, 2023.
Friday, May 24, 2024
Friday May 24 Cattle on Feed, Cold Storage, + Chix & Eggs Reports
Friday May 24 Ag News
Latest News and Updates from the Lower Elkhorn Natural Resources District
Modifications Made to the District’s Cover Crop Program Guidelines
In February, the Lower Elkhorn NRD (LENRD) Board of Directors approved modifications to LENRD Cover Crop Guidelines. Some of the modifications include: increasing the maximum number of acres enrolled from 80 to 160; the minimum contract amount from $200 to $220; and the definition of how to decide who a participant, or operator, is. Exceptions have also been added to the requirement for Cover Crop Seeding each year for up to three consecutive years.
LENRD Board Members Considering Financial Assistance for the City of Wayne Prairie Park Project
Discussions have been ongoing amongst Board members on whether to provide financial support to the City of Wayne for their ongoing Prairie Park Project. Due to the amount of funding requested, $250,000, the Project would be considered a “special project” which is different than a request for funding through LENRD cost-share programs.
The Prairie Park Project is a Community Redevelopment Project which is allowing the City to clean up an old sewage lagoon and turn it into a recreational area with the possibility for the addition of workforce housing in the future. Once completed, the park will be the largest recreational area in City history and connects to a trail system that is already in use. The project will include a lake feature and camper pads as well as native prairie grasses and numerous trees.
The City of Wayne has already put roughly $2.7 million into the project and has received additional assistance from grants, sales taxes, and support from other entities. The LENRD has assisted the City of Wayne with funding in the past for a trail system and a City park through the Urban Recreation Program.
An amended motion to provide $100,000 in support over three years failed at the April 25th Board Meeting. The original motion, to provide $250,000 in support over a three-year term, also failed. The Board discussed establishing a policy, or specific criteria, that requests must meet to receive funding as a special project. Directors asked if the City of Wayne could come back before them with a different proposal to be discussed and voted on.
Policy Now in Place for Inter-District Transfer of Groundwater
In March, Board members approved a policy to approve variance requests for well permits/expansion of acres with an existing well involving inter-district transfers of groundwater. This policy will not only provide consistency in the variance approval process but also encourage collaboration with neighboring NRDs. In order to approve a variance request under this policy, three conditions must be met:
The applicant is following all rules and regulations of the LENRD.
When all, or a portion of, the groundwater withdrawn from the proposed/existing well will be used for irrigation in a neighboring NRD, the neighboring District must first grant their approval for the intended use before well operation may begin.
All new consumptive use associated with the proposed new/existing well will be governed by the rules and regulations of the LENRD.
Lower Elkhorn NRD Groundwater Management Area Rules & Regulations Have Been Amended
After months of discussion and review with the Department of Natural Resources and the Nebraska Department of Environment and Energy, the LENRD Board of Directors approved amendments to the Lower Elkhorn NRD Groundwater Management Area Rules and Regulations. The amendments include modifications to the Phase II, III, and IV Area requirements. A main focus of the change was to modify Rule 17, which currently doesn’t allow for flexibility to add new irrigated acres in the LENRD Quantity Subareas. Additional changes were also made to help better define certain definitions.
Spring 2024 Static Water Level Update
Water Resources Technician, Dallas Dorey, updated Directors on the status of District static water levels this Spring. The Spring measurements provide data of the aquifer’s non-pumping levels. Annual monitoring of water levels is done to see long-term data trends and determine if there are issues with groundwater quantity. Of the 238 wells measured, 33 wells recorded all-time Spring lows and District-wide water levels were down an average of 0.93’. The static water level of 164 wells had declined, 26 remained the same (+/- 0.2’), and 47 were higher than Spring 2023.
LENRD Board of Directors Vote to Move Forward with Settlement
At the Board Meeting on April 25th, Directors approved a motion to move forward with a settlement in the lawsuit with Director Melissa Temple.
Make plans to join us for our Committee of the Whole Meetings held at 7:00p.m. on the second Thursday of the month, and our Board Meetings held at 7:30p.m. on the fourth Thursday of the month (except for Thanksgiving and Christmas holidays). A meeting calendar can be found on our website at www.lenrd.org.
To learn more about the 12 responsibilities of the Nebraska’s NRDs and how your local District can work with you and your community to protect your natural resources, visit www.lenrd.org and sign up for our monthly emails. The next board of directors meeting will be Thursday, May 23rd at the LENRD office in Norfolk at 7:30 p.m. and on Facebook Live.
Dams Protect Lives and Property During Intense Rainstorms
Amid a series of intense rainstorms, eastern Nebraska faced a deluge that brought up to 10 inches of rain within hours. Thanks to a network of floodwater-reduction dams, lives were saved, and property damage was significantly mitigated.
These dams, built through the U.S. Department of Agriculture’s Natural Resources Conservation Service (NRCS) in partnership with Nebraska’s Natural Resources Districts (NRDs), proved their worth during this extreme weather event on May 21.
Within the 51,000-acre Bellwood Creek Watershed, 13 dams south of Bellwood, Nebraska, in Butler County, prevented an estimated $1 million in damages to downstream property and infrastructure. The Lower Platte North NRD is responsible for the operation and maintenance of these 13 structures.
Similarly, the 34,000-acre Cottonwood Creek sub-watershed, northwest of Wahoo, Nebraska, in Saunders County, benefitted from 12 dams that prevented an estimated $300,000 in damages. Despite these protective measures, the town of Wahoo still experienced significant flooding. However, the presence of the dams helped reduce the overall impact. The towns of Prague and Malmo also saw benefits from these dams. The Lower Platte North NRD manages these structures.
“While we understand we will never able to control all flooding we are working hard to reduce flooding and flood-related damages throughout our 1 million+ acre district,” said Eric Gottschalk, Lower Platte North NRD general manager.
In the 63,000-acre North Oak sub-watershed, spanning portions of Butler, Saunders and Lancaster Counties, 16 dams prevented an estimated $800,000 in property and infrastructure damage. The towns of Valparaiso and Raymond are located within this watershed. The Lower Platte South NRD oversees the maintenance of these dams.
“NRCS has been a proud partner with Natural Resources Districts by providing technical and financial assistance for over 50 years,” said Nebraska NRCS State Conservationist Rob Lawson. “One of our priorities is assisting local sponsors in identifying and completing floodwater prevention projects to enhance public safety and reduce property damage. The performance of these watersheds structures is a proud accomplishment for NRCS, NRD sponsors, and the stakeholders who implemented this infrastructure.”
Lawson added that many residents within these watersheds or downstream may not realize the existence of these dams, but their value becomes evident during torrential rain events.
Recognizing the ongoing flood risks, the Lower Platte North NRD and NRCS approved the Upper Wahoo Creek Watershed Plan in 2022. This $19.7 million project aims to construct nine floodwater-reduction dams within a 100-square-mile area in the Wahoo Creek Watershed, generally located west of Wahoo, in Saunders County. The plan includes the construction of nine wet dams on sites south of Prague, west of Weston, and west of Wahoo.
“This project provides a critical link in reducing flood damages in the Wahoo Creek Watershed,” Gottschalk said. “After many years of planning, it is satisfying to see all components come together for completion by the end of 2026.”
Since their inception in 1972, Nebraska’s Natural Resources Districts have been building and maintaining flood control structures to protect lives, property and the future. NRDs have taken on the operations and maintenance of watershed dams built with federal support from NRCS.
Nebraska’s extensive network of over 700 watershed structures is a critical component of its flood reduction infrastructure. The Watershed Protection and Flood Prevention Operations (WFPO) Act, also known as PL-566, authorizes the NRCS to assist local organizations and government units in planning and implementing watershed projects. Nebraska’s NRDs have effectively utilized this federal funding in partnership with NRCS to enhance flood protection across the state.
USDA expands support to herds without H5 detections
Kris Bousquet, NE State Dairy Assoc.
The NSDA has worked with multiple governmental agencies to pre-position personal protective equipment(PPE) in regions where our dairies are located. A big thank you goes out to the Central States Center for Agricultural Safety and Health (CS-CASH), Nebraska Department of Health and Human Services and the University of Nebraska Extension for helping in this effort. This initial offering of PPE will act as a “starter kit” to help your employees become acquainted and properly trained with the equipment to ensure future safety while working with infected animals and potentially infected raw milk. There is enough personal protective equipment for 4 sets per farm and respective agencies will restock as supplies are needed. This equipment is FREE to you and recipients will maintain anonymity. If a farm would like to access PPE for their employees, you may visit the three following locations to receive your allotment.
Madison County Extension Office- 1305 S. 13th St, Norfolk NE 68701
Gage County Extension office – 1115 W Scott St, Beatrice NE 68310
Hall County Extension Office – 3180 US-34, Grand Island, NE68801
To stay up to date on the evolving H5N1 issue, please visit the following websites for more information:
Nebraska Department of Agriculture - https://nda.nebraska.gov/animal/diseases/hpai_livestock/index.html
University of Nebraska Dairy Extension - https://dairy.unl.edu/
University of Nebraska “Big Red Biosecurity” - https://bigredbiosecurity.unl.edu/avian-influenza
National Milk Producers Federation - https://www.nmpf.org/resources/hpai
USDA Expands Support for Producers to Stop the Spread of H5N1 in Dairy Cattle
Since the detection of H5N1 in dairy cattle in March, USDA has worked swiftly and diligently to assess the prevalence of the virus in U.S. dairy herds and to use the latest scientific data to learn about the virus and to quickly contain the disease event. As part of this multifaceted approach, on May 10, USDA announced several financial assistance options for producers with affected herds.
USDA is announcing the expansion of some of these support options to include dairy producers whose herds have not tested positive for H5N1. USDA listened to feedback from state partners and industry stakeholders and is building on the Federal Order addressing pre-movement testing by further equipping producers with tools they can use to keep their herds and workers healthy and reduce risk of the virus spreading to additional herds. These financial tools include:
Support biosecurity planning and implementation. USDA will now provide financial support (up to $1,500 per premises) to any producer to develop and implement a biosecurity plan based on existing secure milk supply plans. This includes recommended enhanced biosecurity for individuals that frequently move between dairy farms – milk haulers, veterinarians, feed trucks, AI technicians, etc. In addition, USDA will provide a $100 payment to producers who purchase and use an in-line sampler for their milk system.
Reimburse producers for veterinary costs associated with sample collection for H5N1 testing. USDA is supporting producers by covering fees for veterinarians to collect samples for H5N1 testing. Veterinary sample collection costs are eligible to be covered from April 29, 2024 (the date the Federal Order went into effect), up to $2,000 per premises.
Offset shipping costs for influenza A testing at laboratories in the National Animal Health Laboratory Network. USDA will pay for the cost of shipping samples to NAHLN labs for testing, not to exceed $50 per shipment for up to 2 shipments per month for each premises. USDA is already providing no-cost testing at NAHLN laboratories for samples associated with this event (e.g., pre-movement, testing of sick/suspect animals, samples from concerned producers).
Interested producers should contact the APHIS Area Veterinarian in Charge (AVIC) to enroll.
For those producers with H5N1 affected herds, USDA is announcing additional details about how farmers will be compensated for the milk their cows do not produce because of illness.
Compensate producers for loss of milk production. USDA will soon issue a rule making funding available from the Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish Program (ELAP) to compensate eligible producers with positive herds who experience loss of milk production. While dairy cows that have been infected with H5N1 generally recover well, and there is little mortality associated with the disease, it does dramatically limit milk production, causing economic losses for producers with affected premises. USDA can support farmers with the ELAP program to offset some of these losses. USDA anticipates that its forthcoming rule will specify that farmers will receive payments at 90 percent of lost production per cow, for a set period of time retroactive to the date of the confirmation of their positive herd status, starting with the first herd that tested positive in March 2024.
The U.S. government is addressing this situation with urgency and through a whole-of-government approach. USDA is working closely with federal partners at FDA, which has the primary responsibility for the safety of milk and dairy products, by assisting with conducting pasteurization testing at USDA labs. USDA is also working closely with federal partners at CDC, which has the primary responsibility for public health, by encouraging producer and industry cooperation with public health officials to get vital information necessary to assess the level of risk to human health.
To learn more about USDA’s response to H5N1 in dairy cattle, visit https://www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza/hpai-detections/livestock.
Nebraska Governor Pillen Wins 2024 America's Fuel Award
Growth Energy, the nation's largest biofuel trade association, presented Nebraska Governor Jim Pillen (R) with its highest honor—the America's Fuel Award—this week, in recognition of his commitment to American bioethanol and his efforts to make Nebraska's biofuels industry among the strongest in the nation.
"Nearly one year ago, Governor Jim Pillen led the charge to pass the E15 Access Standard Act, and then signed it into law…thanks to his effort and leadership, Nebraska drivers will soon have expanded access to E15 through this landmark legislation," said Growth Energy CEO Emily Skor as she presented the award to Gov. Pillen at an event in Lincoln earlier this week. "Governor Pillen knows firsthand the positive impact this will have on Nebraska’s farmers and biofuel producers, and we are grateful for his tremendous leadership and his work with the legislature to get this across the finish line."
"With Governor Pillen at the helm, Nebraska is blazing a trail for biofuels, and we hope other states will follow his example," she added.
America’s Fuel Award is presented to an individual who has gone above and beyond the call of duty as a champion for the renewable fuels industry. Past winners of America’s Fuel Award include Iowa Senator Chuck Grassley, U.S. Department of Agriculture Secretary Tom Vilsack, former Iowa Governor and U.S. Ambassador to China Terry Branstad, retired four-star General Wesley Clark, and Richard Childress of Richard Childress Racing.
Tech Hub LIVE 2024: Premier Event for Advancing Tech-Enabled Agriculture
Tech-Driven. Customer-Focused. Smart Solutions for Modern Agriculture. The much anticipated Tech Hub LIVE Conference and Expo, powered by CropLife Media Group®, taking place July 29-31, 2024, at the Iowa Events Center in Des Moines. This premier event promises to deliver an innovative and forward-looking experience for all participants, emphasizing the latest tech-enabled solutions for the agriculture industry.
Tech Hub LIVE is recognized as the leading event for advancing data-driven agriculture, attracting a diverse group of stakeholders, including ag retailers, distributors, consultants, manufacturers, and other key players in the ag supply chain. The event provides a platform for professionals to explore and leverage the latest technological innovations, ensuring practical business advantages on the farm.
Tech Hub LIVE offers an expansive range of features encompassing all segments of data-driven agriculture. Attendees will benefit from engaging sessions, roundtable discussions, keynote addresses, and an extensive expo hall showcasing cutting-edge technologies. The event is designed to foster collaboration and innovation, providing critical insights and practical solutions to advance the food value chain.
Key Features of Tech Hub LIVE 2024:
Women in Ag Tech@ Tech Hub LIVE: A pre-conference opportunity to connect and engage with leading women in the ag tech industry
Welcome Party: Kick off the event with a Top Gun-themed networking event on the evening of July 29th. Enjoy food, drinks, music, and games while meeting up with your industry friends!
Keynote Address: Hear from Ted McKinney, Chief Executive Officer of the National Association of State Departments of Agriculture (NASDA), who will share insights on the future of agriculture.
Roundtable Discussions: Join subject matter experts for facilitated discussions on various topics, including in-field ag tech tools, weed management technology, and AI-driven strategies for agri-food supply chain success.
Expo Hall: Explore the latest innovations and technologies from leading ag tech companies and organizations.
Powered by CropLife Media Group®, the nation's leading voice for the ag retail industry, in collaboration with the Global Ag Tech InitiativeSM and AgriBusiness Global brands, along with our partners Ever.Ag, Greater Des Moines Partnership, and Telus Agriculture, and supporting organizations Agricultural Retailers Association, AgGateway, FIRA 2024, and AgriBusiness Association of Iowa, Tech Hub LIVE is designed to foster collaboration and innovation, providing valuable insights and practical solutions to advance agribusiness.
For more information and to register, visit Tech Hub LIVE https://techhublive.com/.
Biden-Harris Administration Invests in Domestic Fertilizer Projects to Strengthen American Farms and Businesses
U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is investing in domestic fertilizer projects to strengthen competition for U.S. farmers, ranchers and agricultural producers.
This funding advances President Biden’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up. It will create jobs and spur economic growth in rural communities by increasing competition in agricultural markets. Through these projects, President Biden is delivering on promises he made two years ago when he visited rural Illinois to announce the doubling of funding available through the Fertilizer Production and Expansion Program (FPEP).
“The Biden-Harris Administration and USDA are committed to bolstering the economy and increasing competition for our nation’s farmers, ranchers and small business owners,” Secretary Vilsack said. “The investments announced today, made possible through the Commodity Credit Corporation, will increase domestic fertilizer production and strengthen our supply chain, all while creating good-paying jobs that will benefit everyone.”
The Department is awarding $83 million in 12 states for projects through the Fertilizer Production Expansion Program (FPEP). This program provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more.
These investments will boost domestic fertilizer production, strengthen competition and lower costs for U.S. farmers. The projects will also help U.S. farmers increase independent, domestic fertilizer production. For example:
In California, 4420 Serrano Drive LLC will use a $25 million grant to build and equip a food waste upcycling facility in Jurupa Valley. The facility uses insects to recycle food waste into an organic nutrient fertilizer. Through this funding, the facility is expected to produce 11,400 tons annually, which will provide domestic fertilizer for approximately 90 producers in the region.
In Florida, Cog Marketers LTD, which also does business as AgroLiquid, will use a $4 million grant to build and equip a manufacturing facility in Lake City. The facility is expected to produce 2 million gallons of fertilizer components annually, which will provide domestic fertilizer to more than 200 independent retailers in Alabama, Florida, Louisiana, Mississippi, North Carolina and South Carolina.
In Iowa, Return LLC will use $4 million to expand its current facility in Northwood. This investment will improve existing infrastructure and purchase equipment for manufacturing and transporting materials. The funding will help accelerate growth in domestic fertilizer production and provide support to farmers and their communities.
USDA is making awards to facilities in California, Florida, Hawaii, Iowa, Illinois, Kansas, Kentucky, Minnesota, North Carolina, North Dakota, Oregon and Washington.
To date, USDA has invested $251 million in 57 projects across 29 states through FPEP.
USDA April Livestock Slaughter
Commercial red meat production for the United States totaled 4.64 billion pounds in April, up 10 percent from the 4.20 billion pounds produced in April 2023.
Beef production, at 2.30 billion pounds, was 11 percent above the previous year. Cattle slaughter totaled 2.73 million head, up 7 percent from April 2023. The average live weight was up 41 pounds from the previous year, at 1,395 pounds.
Veal production totaled 3.5 million pounds, 2 percent below April a year ago. Calf slaughter totaled 17,500 head, down 20 percent from April 2023. The average live weight was up 59 pounds from last year, at 338 pounds.
Pork production totaled 2.32 billion pounds, up 9 percent from the previous year. Hog slaughter totaled 10.7 million head, up 10 percent from April 2023. The average live weight was down 1 pound from the previous year, at 290 pounds.
Lamb and mutton production, at 11.4 million pounds, was up 4 percent from April 2023. Sheep slaughter totaled 188,800 head, 2 percent above last year. The average live weight was 119 pounds, up 2 pounds from April a year ago.
By State (million lbs - % April '23)
Nebraska ....: 661.0 116
Iowa ...........: 774.4 111
Kansas ........: 509.7 113
January to April 2024 commercial red meat production was 18.3 billion pounds, up 1 percent from 2023. Accumulated beef production was down slightly from last year, veal was down 9 percent, pork was up 2 percent from last year, and lamb and mutton production was up 2 percent.
Pork Producers One Step Closer to Certainty as Bipartisan Solution for Prop. 12 Clears House Agriculture Committee
The National Pork Producers Council (NPPC) is pleased to announce the U.S. House Agriculture Committee has passed their 2024 Farm Bill, which supported all of producer’s farm bill requests, including a federal fix to the host of Prop. 12 issues plaguing producers and consumers.
“The 2024 Farm Bill is a golden opportunity to address a top issue for pork producers across the country – California Prop. 12 – and I’m pleased to see the U.S. House Agriculture Committee seize the opportunity to stop a potential 50-state patchwork of differing on-farm regulations,” said NPPC President Lori Stevermer, a pork producer from Easton, Minn.
“At a time when bipartisanship is often a four-letter word in Washington, we applaud the House Agriculture Committee for working together to deliver a farm bill that validates America’s pork producers’ needs.”
“We urge the U.S. Senate to follow suit and provide much needed certainty to pork producers and consumers across the country.”
A 2018 California ballot initiative, Proposition 12, prohibits the sale of uncooked whole pork meat not produced according to the state’s arbitrary housing dimensions. Recent USDA data indicates price spikes as high as 41% for pork in California since Prop. 12 came into effect.
The House Farm Bill also accomplishes 100% of U.S. pork producers’ priorities, including:
• Preservation of necessary resources to protect the nation’s food supply through foreign animal disease prevention.
• Increase in market access programs for U.S. pork.
• Boost in resources for feral swine eradication to protect the health of our herds.
• Authorization of the National Detector Dog Training Center, which serves as the first line of defense for early detection at ports of entry.
NCBA Commends House Agriculture Committee for Passing Farm Bill
The National Cattlemen’s Beef Association (NCBA) thanked the House Agriculture Committee for passing the next Farm Bill, known as the Farm, Food, and National Security Act of 2024. This Farm Bill includes top priorities for cattle farmers and ranchers including cattle health, voluntary conservation, and food security provisions.
“Cattle producers are thankful that the House Agriculture Committee has advanced a Farm Bill that delivers on the needs of rural America,” said NCBA President and Wyoming rancher Mark Eisele. “This Farm Bill protects the cattle industry from foreign animal disease, supports producers’ voluntary conservation efforts, and safeguards our food supply, recognizing that our food security is national security. On behalf of cattle farmers and ranchers across the country, thank you to Chairman Thompson and the House Agriculture Committee for passing this bill. I hope the full House will take the next step and pass this bill soon.”
NMPF Thanks House Agriculture Committee for Farm Bill Progress and Key Dairy Wins
The National Milk Producers Federation thanked members of the House Agriculture Committee for their work to advance a 2024 Farm Bill through Congress this year, with bipartisan approval for a plan introduced by Chairman Glenn “GT” Thompson that includes numerous provisions important to dairy farmers and the cooperatives they own.
“We commend Chairman Thompson and committee members from both parties for approving a 2024 House Farm Bill that includes critical dairy priorities that will help support and grow this industry,” said Gregg Doud, president and CEO of NMPF. “We will do whatever we can to work with lawmakers in both chambers on a bipartisan basis to pass a new law as soon as possible, knowing that dairy is well-served by what the House Agriculture Committee approved today.”
Provisions benefiting dairy urged by NMPF are found across the bill’s titles, including ones that:
Extend the Dairy Margin Coverage (DMC) program through 2029; update production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extend the ability for producers to receive a 25% premium discount for locking five years of coverage;
Restore the “higher of” Class I mover to reinstate orderly milk marketing and require plant cost studies every two years to provide better data to inform future make allowance conversations, two key components of NMPF’s Federal Milk Marketing Order modernization proposal;
Support the bipartisan, House-passed Whole Milk for Healthy Kids Act to reverse the underconsumption of nutritious milk in our schools;
Boost funding for critical dairy trade promotion programs and protect the use of common food names worldwide;
Support voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program, with dedicated funds for livestock operations and language encouraging states to prioritize methane-reducing practices;
Improve the certification of Third-Party Service Providers with technical expertise related to conservation planning to better assist producers participating in National Resources Conservation Service (NRCS) programs;
Continue the Farm and Ranch Stress Assistance Network; and
Increase funding for animal health initiatives and programs.
Other provisions relevant to dairy include:
Increasing the DMC Program Tier 1 volume threshold from five million pounds to six million pounds;
Extending the Dairy Forward Pricing Program, the Dairy Indemnity Program, and the Dairy Promotion and Research Program;
Directing USDA to collect and publish cost-of-production data for organic milk;
Raising EQIP conservation funding from $2.4 billion in fiscal year 2025 to $3.25 billion in fiscal year 2029;
Requiring USDA to create a public process for updating conservation practice standards every five years; and
Requiring USDA to report to Congress on the department’s preparedness to support livestock and poultry growers facing economic losses in the event of an outbreak of a foreign animal disease.
Statement of NCFC President Chuck Conner on House Farm Bill Mark-up
“(Thursday) evening’s approval of the Farm, Food, and National Security Act of 2024 by the House Agriculture Committee represents a necessary step forward towards passing a new farm bill by the end of this year. I would like to applaud Chairman Thompson for his leadership on moving this bill forward. We look forward to working with members of Congress on both sides of the aisle to build the bipartisan support that will be needed to see a farm bill passed through both chambers and signed into law.”
Thursday, May 23, 2024
Thursday May 23 Ag News
Beef production adds value to cropland
Alfredo DiCostanzo, Nebraska Extension Beef Systems Educator
It was not that long ago that corn grain prices traded above $6/bu; between 2021 and midyear in 2023 to be specific. At a production of 200 bu grain/acre, gross income from selling corn at $7/bu is $1,400 per acre. It is easy to be convinced this scenario is attractive. Yet, when one realizes that $1,400 gross income per acre from corn grain sales occur only about twice every 10 years and, that the cost of producing corn grain on an acre is now closer to $1,000, then real expectations for continued profit at these levels fade fast.
Alternatively, when the decision is made to add value to corn grain by feeding it to cattle, this scenario becomes more interesting. Feeding corn grain to cattle adds value to cropland: through grain sales and through manure application.
The simplest way to understand how cattle feeding adds value to cropland is to calculate the value of the crop (in this case corn) after subtracting all the out-of-pocket expenses from the gross return resulting from the sale of fed cattle. This value represents the gross dollars that can be allocated to corn cropland.
Net value of the crop can then be calculated after deducting the cost of raising the crop and margin expected when selling corn grain off the farm. Any balance remaining after these deductions represents the net margin to the cattle feeding operation. This approach also permits calculation of the credit resulting from applying manure nutrients generated from the cattle feeding operation.
Using current fed ($188/cwt) and feeder ($350/cwt) cattle prices with corn grain priced at $4.50/bu, and consumption of 77 bu of corn to raise a steer from 550 to 1,500 lb results in a residual value to allocate to cropland of $493 per head fed. Transforming this value to dollars per bushel (dividing $493 by 77 bu) results in a value of $6.37. This figure represents the dollar contribution to cropland by feeding corn grain to cattle. Comparing this figure to the $4.50/bu received at the local elevator demonstrates a gain in value (value added) of $1.90/bu; 42% increase in value to the corn crop.
In addition, manure produced from this operation should be credited with reducing the costs of fertilizer. This calculation requires taking into consideration fertilizer prices, application rates and debit to the cattle operation, if any, resulting from using corn residue for feed or bedding.
For the sake of simplicity, no residue use was considered, and application rates were 150 lb of N per acre and 50 lb of phosphate per acre. Fertilizer prices were $794, $779, and $513 per ton for anhydrous ammonia, diammonium phosphate and potassium chloride, respectively.
Using these figures, the value of manure was calculated at $9.85 per ton or $0.08 per head daily. Prorating this figure to the 287 days on feed results in a manure credit per head per feeding cycle of $23. This figure, divided by the corn usage allocated to each head (77 bu), results in additional value added to corn grain of $0.30/bu.
The total value of corn grain derived from feeding cattle and that derived from manure credit results in an increase in corn grain value from $4.50 to $6.67/bu. In a previous column, “Cattle, other feedlot costs and the economy (week of May 5)”, I estimated the contribution of cattle feeding to corn value using the current price of corn grain at the marketplace. Using the difference in market price ($4.50/bu) and value resulting from feeding cattle ($6.67/bu) or $2.17/bu and bushels used to finish
560,000 cattle in Cuming County yearly results in value added to corn cropland of 94 million dollars.
A few things come to mind when I derive these calculations: 1) beef business is sustainable because it sustains communities, and 2) I wonder what the world will look like if certain special interests have their way reducing or eliminating beef cattle production. Hopefully, I am not around to see the results of the latter; yet I would propose that climate patterns would remain unaffected by this change in eating habits, but society would be poorly nourished and less prosperous.
Please enjoy beef while honoring the sacrifice US military personnel made for this country.
NORTHERN PLAINS FARM LABOR
In the Northern Plains Region (Kansas, Nebraska, North Dakota, and South Dakota) there were 37,000 workers hired directly by farm operators on farms and ranches during the week of April 7-13, 2024, unchanged from the April 2023 reference week, according to USDA's National Agricultural Statistics Service. Workers numbered 30,000 during the week of January 7-13, 2024, down 9% from the January 2023 reference week.
Farm operators paid their hired workers an average wage of $19.68 per hour during the April 2024 reference week, up 6% from the April 2023 reference week. Field workers received an average of $21.12 per hour, up $1.77. Livestock workers earned $17.17 per hour, up $0.33 from a year earlier. The field and livestock worker combined wage rate, at $18.90, was up $1.03 from the April 2023 reference week. Hired laborers worked an average of 44.4 hours during the April 2024 reference week, compared with 41.8 hours worked during the April 2023 reference week.
Farm operators in the Northern Plains Region paid their hired workers an average wage of $19.77 per hour during the January 2024 reference week, up 5% from the January 2023 reference week. Field workers received an average of $21.61 per hour, up $1.58. Livestock workers earned $17.18 per hour, up $0.08 from a year earlier. The field and livestock worker combined wage rate, at $18.73, was up $0.68 from the January 2023 reference week. Hired laborers worked an average of 42.8 hours during the January 2024 reference week, compared with 40.0 hours worked during the January 2023 reference week.
CORNBELT REGION FARM LABOR REPORT
There were 19,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri) during the reference week of January 7-13, 2024, according to the latest USDA, National Agricultural Statistics Service – Farm Labor report. Farm operators paid their hired workers an average wage rate of $20.15 per hour, $1.10 above January 2023. The number of hours worked averaged 37.3 for hired workers during the reference week, compared with 36.7 hours in January 2023.
During the reference week of April 7-13, 2024, there were 22,000 workers hired directly by farms in the Cornbelt II Region (Iowa and Missouri). Farm operators paid their hired workers an average wage rate of $19.51 per hour during the April 2024 reference week, $1.26 above April 2023. The number of hours worked averaged 39.5 for hired workers during the reference week, compared with 39.7 hours in April 2023.
April Hired Workers Down 5 Percent; Wage Rate Increased 5 Percent from Previous Year
There were 618,000 workers hired directly by farm operators on the Nation's farms and ranches during the week of April 7-13, 2024, down 5 percent from the April 2023 reference week. Workers hired directly by farm operators numbered 496,000 during the week of January 7-13, 2024, down 3 percent from the January 2023 reference week.
Farm operators paid their hired workers an average wage of $18.98 per hour during the April 2024 reference week, up 5 percent from the April 2023 reference week. Field workers received an average of $18.25 per hour, up 6 percent. Livestock workers earned $17.43 per hour, up 6 percent. The field and livestock worker combined wage rate, at $17.98 per hour, was up 6 percent from the 2023 reference week. Hired laborers worked an average of 40.6 hours during the April 2024 reference week, unchanged from the hours worked during the April 2023 reference week.
Farm operators paid their hired workers an average wage of $19.49 per hour during the January 2024 reference week, up 5 percent from the January 2023 reference week. Field workers received an average of $18.51 per hour, up 5 percent, while livestock workers earned $17.52 per hour, up 5 percent from a year earlier. The field and livestock worker combined wage rate, at $18.10 per hour, was up 5 percent from the January 2023 reference week. Hired laborers worked an average of 38.7 hours during the January 2024 reference week, down 1 percent from the hours worked during the January 2023 reference week.
Center for Rural Affairs report: Solar development has minimal impact on ag land use
As renewable energy development grows in rural areas, so do concerns about protecting agricultural land, especially from utility-scale solar projects.
The U.S. Department of Energy (DOE) estimates that by 2050 solar will occupy 10.3 million acres of land nationally, 90% of which will be in rural areas. To address concerns about utility-scale solar systems occupying a large amount of prime farmland, some local and state officials have proposed and even placed restrictions prohibiting it.
Alex Delworth, policy associate with the Center for Rural Affairs, said the restrictions are concerning.
“They can be debilitating for solar development, not to mention raise questions about private property rights,” he said. “In one instance, we found a county-level restriction related to prime farmland that eliminated 75% of potentially developable land in the area.”
While utility-scale solar projects can look intimidating amid concerns about taking land out of production, a new report from the Center for Rural Affairs found their overall impact on agricultural land use is minimal.
“Sifting through Solar: Land-Use Concerns on Prime Farmland,” written by Delworth, discusses how restrictions are designed and forecasts solar development’s impact on prime farmland in the Midwest region.
The DOE predicts that between 210 and 420 GWs of solar projects are needed in the Midwest by 2050 to meet federal decarbonization standards. According to the report, if all of the forecasted solar was built on the region’s prime farmland, it would occupy between 1.45% and 2.9%.
The report also addresses potential short-term impacts in Iowa and Minnesota.
Delworth said if every acre currently proposed for solar development in Iowa was built on the state’s top 14% rated farmland (90 Corn Suitability Rating, or CSR, and above), it would occupy 0.54% of the total acres. Furthermore, the proposed solar would occupy only 0.14% of the top 62% rated farmland (65 CSR and above).
The projected impact in Minnesota is also minimal. According to the report, if the number of acres currently proposed were located on prime farmland, it would cover less than 0.3% of the land.
Delworth hopes local, county, and state officials will consider the report’s findings as they decide the future of solar development in their area.
“Implementing rules that work with solar development rather than limiting it will open up economic opportunities for rural residents who want to voluntarily lease their land,” Delworth said. Renewable energy projects also generate tax revenue for counties, schools, and emergency services as well as create rural employment opportunities.
To read and download a copy of “Sifting through Solar: Land-Use Concerns on Prime Farmland,” visit cfra.org/sifting-through-solar.
First Greeneye Technology Dealership Opens in Nebraska
Greeneye Technology, the pioneer of AI precision spraying that is proven to reduce chemical use in farming by an average of 88%, has announced the opening of its first dedicated dealership. The company is partnering with Nebraska-based Boeck Seed Services to provide sales, installation and service to farmers in Nebraska and adjoining states, in the first of a planned nationwide network of dealerships to support the company’s ambitious expansion plans in the U.S.
Nadav Bocher, CEO, Greeneye Technology, comments: “We are delighted to announce the opening of our first dealership, which represents a significant ramp-up in our U.S. operation. Throughout our journey, we have been clear that for our business to be truly scalable, we need to establish strong links with local dealers. These are the people that farmers know and trust, and with their expertise and in-depth local knowledge, we believe they are the people best placed to provide excellent service and support for Greeneye customers. We are excited to collaborate with the fantastic team at Boeck Seeds and we look forward to announcing more partnerships soon.”
Located near Exeter, Nebraska, family-run Boeck Seeds has established itself as a leading retailer and farming equipment dealer and is already the number one precision planter dealer in the state, making it an ideal partner for Greeneye.
Commenting on the partnership, Cody Boeck, Operations Director at Boeck Seeds, says: “Weed control is without a doubt the biggest challenge facing our customers – and at the moment, it is a challenge they are losing. Farmers want to be good stewards and spray less, not more, but at present, there is no way to do that without sacrificing yield. Greeneye’s retrofit system will change the game, enabling farmers to significantly reduce chemical use, and costs, without impacting the efficacy of their weed control strategies or reducing productivity, all while continuing to use their existing sprayer. We expect to see very high demand for this technology.”
Boeck Seeds has already begun to sell Greeneye systems for the 2025 season. In September, it will open a dedicated facility at its existing site where it will retrofit customers’ existing sprayers, ready for delivery next spring. It has also employed an extra salesperson to deal with the expected high level of demand.
During the retrofit process, the sprayer’s existing boom is replaced with Greeneye’s cutting-edge, proprietary 120ft aluminum boom, which is supplied pre-installed with the key components of the precision spraying system. These include 24 high-resolution cameras, 12 GPUs, 144 independently-controlled spray nozzles spaced at 10” intervals along the boom to ensure highly-accurate plant-level precision spraying, and 72 high-intensity lights to allow spraying to be carried out day and night. In addition, the sprayer’s existing single line/tank system is upgraded to Greeneye’s dual line/tank configuration. This feature enables farmers to simultaneously apply residual herbicides on a broadcast basis, while spot spraying non-residual herbicides via the Greeneye line, for ultimate weed control.
Once the retrofit process is complete, the Boeck team will deliver the sprayer to the customer, supporting them with in-field training to ensure a seamless transition to precision spraying, as well as providing ongoing operation and maintenance support.
Jerry Boeck, CEO, Boeck Seeds, comments: “In today’s market, the first question farmers must ask themselves when making any purchase is: how quickly can I make this investment profitable? With the Greeneye system, a mid-size farmer will see a return on their investment very quickly. At the same time, the benefits the system offers – a significant reduction in chemical use, and costs, and improved efficacy, all with no subscription fees – are very tangible. This makes it very simple for farmers to understand the value that this technology will bring to their operations.”
He concludes: “As a company that is highly experienced in selling and maintaining precision technologies, the Greeneye system is a very natural fit for us. We are proud to be Greeneye’s first install partner and excited to be on this incredible journey with them.”
Post-storm strategies for feedlot cattle producers
Mother Nature has created a new environment for northwest Iowa feedlot producers. Torrential rains have turned once-dry feedlots to mud, and accompanying hail may have bruised cattle. Iowa State University extension beef specialist Beth Doran said it's important to have a strategy and plan in place to deal with the issues facing producers.
“Wet, muddy conditions reduce weight gain and can compromise cattle health, so the first thing to tackle is mud,” she said. “While not perfect or easy, there are some emergency strategies for dealing with mud.”
Here are some suggestions.
Where possible, place whole round bales of cornstalks, straw, or hay on areas with less mud. The cattle will tear up the bales and lay on the bedding.
If you cannot access dirt surfaces of the feedlot, scrape the bunk apron and concrete-surfaced areas to provide a dry, solid surface for cattle to lay down. Scrape the apron regularly to keep it dry and clean.
On wide aprons over 20 feet, place bedding in areas beyond the 20 feet behind the bunk. Continue to add bedding to form a bed pack and leave the bedding in place until feedlot conditions improve.
"Because hail can cause physical injury to cattle, be aware that marketing may need to be delayed if cattle were hailed upon," Doran said. "The extent of bruising depends on the size of the hail and how soon the cattle are marketed after experiencing hail."
Data from a Texas feedyard that experienced hail ranging from 1¾ to 3¾ inches in diameter indicates cattle sold within 15 days of being hailed upon had significant carcass bruising. However, by day 49 the bruising had returned to normal baseline levels.
For more information on dealing with post-storm issues, contact Doran at 712-737-4230 or email doranb@iastate.edu.
'Raising Your Dairy Best Heifer' Summer Webinar Series to Begin June 3
Join the Iowa State University Extension and Outreach dairy team as they discuss “raising your dairy best heifer” during a summer webinar series. The series will cover practical heifer management topics.
“Nearly 25% of a dairy's production costs are in raising heifer replacements, thus a considerable amount of feed, time and facilities must be invested to optimize growth for heifers to calve at an appropriate age,” said Jennifer Bentley, dairy specialist with ISU Extension and Outreach. “That is why this topic of raising your ‘dairy best’ heifers can have significant financial and herd benefits.”
Each session will cover a different topic related to heifer management, with a question and answer session at the end for any questions participants may have.
Dates and speakers
June 3: Maternity Management – Howard Tyler, associate professor of animal science, Iowa State University. Holstein heifers.
June 10: Heifer Feeding Strategies – Gail Carpenter, associate professor, dairy extension and outreach, Iowa State.
June 24: Colostrum Management – Dr. Phillip Jardon, clinical associate professor, extension veterinarian, Iowa State University; and Jennifer Bentley, dairy specialist, ISU Extension and Outreach.
July 8: Managing Heifer Inventory – Greg Palas, dairy records management system, and Fred Hall, dairy specialist, ISU Extension and Outreach.
July 22: Heifer Health – Dr. Phillip Jardon, clinical associate professor, extension veterinarian, Iowa State.
July 30: Heifer Reproduction – Victor Gomez, associate professor, extension dairy specialist, Kansas State University.
Aug. 5: Heifer Benchmarking – Gail Carpenter, associate professor, dairy extension and outreach, Iowa State.
Aug. 12: Heifer Grower Panel – to be determined.
Aug. 19: Economics of Raising Heifers – Larry Tranel, dairy specialist, Iowa State.
Those interested in participating in the webinar series can register online at https://go.iastate.edu/DAIRYBESTHEIFER.
For more information, contact dairy specialist Fred Hall at 712-737-4230 or fredhall@iastate.edu; Jennifer Bentley at 563-382-2949 or jbentley@iastate.edu; or Larry Tranel at 563-583-6496 or tranel@iastate.edu
Funding for this project was provided by the North Central Extension Risk Management Education Center, the USDA National Institute of Food and Agriculture under Award Number 2021-70027-34694.
USDA seeks feedback from producers about 2024 crops, stocks, inventories, and values
Over the next several weeks, USDA’s National Agricultural Statistics Service (NASS) will conduct two major mid-year surveys, the June Agricultural Survey and the June Area Survey. The agency will contact nearly 4,600 producers across Iowa to determine crop acreage and stock levels as of June 1, 2024.
“The June Agricultural Survey and the June Area Survey are two of the most important and well-known surveys NASS conducts,” explained Greg Thessen, Director of the NASS Upper Midwest Regional Field Office. “When producers respond to these surveys, they provide essential information that helps determine the expected acreage and supply of major commodities in the United States for the 2024 crop year. The results are used by farmers and ranchers, USDA, exporters, researchers, economists, policymakers, and others to inform a wide range of decisions.”
Producers can respond to the June Agricultural Survey online at agcounts.usda.gov, by phone, or mail. They will be asked to provide information on planted and harvested acreage, including acreage for biotech crops and grain stocks. For the June Area Survey, agency representatives will interview farm and ranch operators in randomly selected segments of land over the phone or in person. Producers will be asked to provide information on crop acreage, grain stocks, livestock inventory, land values, and value of sales.
“NASS safeguards the privacy of all respondents, by keeping all individual information confidential and publishing the data in aggregate form only to ensure that no operation or producer can be identified,” said Thessen. “We recognize that this is a hectic time for farmers, but the information they provide helps U.S. agriculture remain viable and capable. I urge them to respond to these surveys and thank them for their participation.”
NASS will publish the data in a series of USDA reports, including the annual Acreage and quarterly Grain Stocks reports June 28, 2024. These data also contribute to NASS’s monthly and annual Crop Production reports, the annual Small Grains Summary, annual Farms and Land in Farms and Land Values reports, various livestock reports, including Cattle, Sheep and Goats, and Hogs and Pigs, and USDA’s monthly World Agricultural Supply and Demand Estimates.
These and all NASS reports are available at nass.usda.gov/Publications/. For more information, call the NASS Upper Midwest Regional Field Office at (800) 772-0825.
USMEF Conference Opens with Focus on Differentiation, Long-Term Investment
Emphasizing the quality and consistency of U.S. red meat is the key to expanding the international customer base, according to the impressive lineup of opening day speakers on Wednesday at the U.S. Meat Export Federation (USMEF) Spring Conference in Kansas City. USMEF members from throughout the nation also learned about additional resources available to promote U.S. pork, beef and lamb in emerging markets through USDA’s new Regional Agricultural Promotion Program (RAPP).
USMEF Chair Randy Spronk, a pork and grain producer from Edgerton, Minn., welcomed attendees with a reminder of how critical free trade agreements (FTAs) have been in creating global opportunities for the U.S. red meat industry.
“Would we have found success in South Korea if U.S. beef was still tariffed at 40% and U.S. pork at 25%?” Spronk asked. “Would we have been able to develop Central and South America, or the Dominican Republic, into reliable destinations for U.S. red meat?"
While they are not full-blown FTAs, Spronk also praised the market access gains achieved in the U.S.-China Phase One Economic and Trade Agreement and the U.S.-Japan Agreement.
“With the weak yen and other headwinds in Japan, imagine trying to compete effectively there if U.S. beef and pork were still at a tariff disadvantage,” Spronk noted.
USMEF President and CEO Dan Halstrom followed with an update on year-to-date export results for U.S. pork, beef and lamb. On the pork side, Halstrom explained that while shipments to leading market Mexico are on a record pace, U.S. pork is achieving broad-based growth in several regions. Halstrom noted that first quarter export value ($2.1 billion) equated to more than $64 per hog slaughtered, while March exports averaged nearly $71 per head.
March was also a great month for U.S. beef export value, which equated to nearly $455 per head of fed slaughter. The first quarter average was $408, up 9% from a year ago, which Halstrom said was a very encouraging metric.
“This tells me that the global consumer is willing to pay because they understand the value of U.S. beef,” Halstrom said. “We’re different. We’re higher value, higher perception. U.S. beef is not a commodity product, like a lot of our competitors. This is a key takeaway.”
Guest speaker Randy Blach, CEO of CattleFax, echoed these sentiments in explaining how U.S. beef competes for the consumer dollar, both in the U.S. and internationally.
“The biggest change in the beef industry has been quality,” Blach said. “And we can never lose sight of that – our niche is grain-fed, high-quality beef that really nobody else can produce around the globe. Those of you who are producers in the room, you have also invested in genetics and you have gotten paid dividends for those decisions.”
Blach also gave an update on the U.S. cattle industry’s herd rebuilding efforts. He noted that the U.S. herd is not yet in expansion mode, but liquidation has definitely slowed, and the herd size has stabilized. He cautioned that even when expansion does materialize, it will not mirror the previous expansion cycle.
“The cost of money is significantly different, and there’s a worry hanging over people’s heads about going back into a La Niña [weather pattern],” Blach said. “The last cattle cycle saw the most rapid expansion in the history of our industry in 2014 and 2015. This time I think we’ll get some expansion, but it's going to stretch out over a longer period of time.”
As for expanding exports, Blach stressed the need for patience and persistence in developing new markets.
“During my career at CattleFax, I have seen how USMEF is able to go into these markets and build a foundation,” he explained. “Japan didn't just become our biggest market overnight, did they? It took decades to build that market, to build confidence and to build relationships. This is not instant gratification that you're talking about. You need to have a vision of the decisions you're making today, and know that we may not see the fruit of those decisions until five or 10 years down the road.”
Daniel Whitley, administrator of USDA’s Foreign Agricultural Service, praised USMEF members for their productivity gains while also providing an update on RAPP funding allocations. He highlighted RAPP’s goal of helping U.S. exporters expand their customer base beyond traditional and established markets, focusing on regions such as Africa, Latin America and Southeast Asia.
Whitley noted that RAPP places a specific emphasis on Africa, which is projected to hold 25% of the world’s population by 2050. That same year, the planet’s total population is expected to reach 10 billion, which presents a massive food production challenge.
“There is no way – no way – that the global agricultural community will be able to solve the problem of feeding 10 billion people by the year 2050 if we don't embrace science, technology and innovation,” Whitley said. “All of the wonderful seed techniques, all of the wonderful techniques we use to grow livestock and farm animal products, we need all of these techniques. We're not going to find new land and plant our way out of this problem, so there's really only one path forward and I do think it's the embrace of science, technology and innovation.”
USMEF members also received unique insights about global food security issues from Kip Tom, former U.S. ambassador to the United Nations for Food and Agriculture. Ambassador Tom stressed that our national security is dependent on our food security, and he too emphasized the need to embrace production technologies.
“The innovation that has taken place in agriculture, whether it's on the livestock side, or the grain side, or food processing – it’s something we need to be very proud of,” Tom said. “We oftentimes say that the U.S. innovates, China replicates and the EU regulates. But we need to make sure we keep those in check, so that we can continue to innovate, grow our economy and grow this industry.”
While Tom believes the U.S. must pay close attention to the global trade advances made by major agricultural competitors, he shares the opinion that an emphasis on quality will differentiate U.S. products and lead to continuing opportunities for American agriculture.
“When I look at Brazil, for example, and what they're exporting in terms of animal proteins, what they're doing in terms of exporting grains, the reality is, they're mostly exporting commodities,” said Tom. “And this is where the real opportunity is for U.S. agriculture – to make sure that we add value and ensure that we set ourselves apart in the global marketplace, to maintain and grow our markets.”
The USMEF Spring Conference continues through Friday, May 24. Thursday’s program will feature a panel discussion on consumer perceptions of red meat products, as well as meetings of USMEF’s sector-specific standing committees. Friday’s general session will focus on the organization’s efforts to build global demand for underutilized beef and pork cuts.
USDA Announces National Pork Board Appointments
The U.S. Department of Agriculture Wednesday announced the appointment of four members to the National Pork Board. All four appointees will serve three-year terms beginning June 2024 and ending June 2027.
The appointed members are:
Pat Bane, Arrowsmith, Illinois
Kevin Rasmussen, Goldfield, Iowa
Jesse Heimer, Taylor, Missouri
Dr. Seth Krantz, Jackson, Tennessee
The National Pork Board is administered under the authority of the Pork Promotion, Research, and Consumer Information Act of 1985. It became effective Sept. 5, 1986, when the Pork Promotion, Research, and Consumer Information Order was implemented. Assessments began Nov. 1, 1986.
More information about the board is available on the Agricultural Marketing Service (AMS) National Pork Board webpage and on the National Pork Board website, porkcheckoff.org.
NMPF Dairy Market Report
U.S. cheese exports posted a 20 percent year-over-year increase during 2024’s first quarter, a bright spot in a soft picture for domestic and overseas U.S. dairy products.
About 8.1 percent of total domestic cheese production was exported during the first quarter – a very strong number considering that the highest percentage of U.S. cheese production exported on an annual basis has been 7.1 percent. Growing cheese sales abroad is a key part of growing overall U.S. dairy exports.
Domestic cheese prices are showing strength following a year of mostly weak performance, partly due to this recent export strength. Meanwhile, butter prices have been mostly closer to $3/lb. than to $2/lb. since the beginning of 2022.
Feed prices have moderated considerably over the past year, as measured by the Dairy Margin Coverage feed cost formula. Coupled with slowly improving milk prices, they have increased the DMC margin to around the $9.50/cwt maximum Tier 1 coverage level under the program, with further increases likely.
View Full Report here: https://www.nmpf.org/cheese-exports-boost-u-s-dairy-market/.
Weekly Ethanol Production for 5/17/2024
According to EIA data analyzed by the Renewable Fuels Association for the week ending May 17, ethanol production increased 1.9% to a 6-week high of 1.02 million b/d, equivalent to 42.80 million gallons daily. Output was 3.7% more than the same week last year and 6.4% above the five-year average for the week. The four-week average ethanol production rate rose 1.6% to 993,000 b/d, which is equivalent to an annualized rate of 15.26 billion gallons (bg).
Ethanol stocks declined 1.1% to 24.2 million barrels. Yet, stocks were 9.8% more than the same week last year and 9.5% above the five-year average. Inventories thinned across all regions except the Gulf Coast (PADD 3).
The volume of gasoline supplied to the U.S. market, a measure of implied demand, leapt 5.0% to 9.32 million b/d (143.19 bg annualized). Demand was 1.3% less than a year ago but 5.0% above the five-year average.
Refiner/blender net inputs of ethanol scaled up 1.6% to 935,000 b/d, equivalent to 14.37 bg annualized and the largest level since early July 2021. Net inputs were 0.6% higher than year-ago levels and 6.0% above the five-year average.
Ethanol exports were estimated at 83,000 b/d (3.5 million gallons/day), or 9.8% below the prior week. There were zero imports of ethanol recorded for the 35th consecutive week.
Urea Leads Majority of Fertilizer Prices Lower
Average retail prices for most fertilizers were lower during the second week of May 2024, according to sellers surveyed by DTN. This was the second week in a row that most fertilizer prices were lower.
Also, like last week, the price of just one fertilizer saw a significant move, which DTN designates as anything 5% or more. That was the price of urea, which was down 5% from a month ago. The nitrogen fertilizer had an average price of $556 per ton.
Prices of four other fertilizers were just slightly less expensive compared to last month. MAP had an average price of $829 per ton, potash $511/ton, anhydrous $792/ton and UAN28 $364/ton.
Three fertilizers were slightly higher in price from last month. DAP had an average price of $789/ton, 10-34-0 $642/ton and UAN32 $418/ton.
On a price per pound of nitrogen basis, the average urea price was $0.60/lb.N, anhydrous $0.48/lb.N, UAN28 $0.65/lb.N and UAN32 $0.65/lb.N.
Once again, all fertilizers are lower compared to one year ago. MAP is 1% lower, DAP is 5% less expensive, anhydrous is 12% lower, 10-34-0 is 13% less expensive, UAN28 is 14% lower, urea is 18% less expensive and both potash and UAN32 are now 19% lower compared to a year prior.
PASSED: House Approves Bipartisan FIT21 to Provide Digital Asset Clarity
Yesterday, the U.S. House of Representatives passed H.R. 4763, the “Financial Innovation and Technology for the 21st Century Act, by a margin of 279-136. FIT21 provides the robust, time-tested consumer protections and regulatory certainty necessary to allow digital asset innovation to flourish in the United States.
"Clarity in digital assets is crucial. Today's bipartisan passage of FIT21 is a significant milestone. It underscores the House Committees on Agriculture and Financial Services' efforts to establish a much-needed regulatory framework," said Chairman Glenn 'GT' Thompson (PA-15). "This framework is designed to protect consumers and investors while fostering American leadership in the digital asset space. I extend my thanks to Chairman McHenry for his leadership and that of our subcommittee chairs, Rep. Johnson and Rep. Hill, in moving this legislation."
On July 20, 2023, Chairman Glenn “GT” Thompson, Rep. French Hill, Rep. Dusty Johnson, Whip Tom Emmer, and Rep. Warren Davidson introduced H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT21). Chairman Patrick McHenry is a cosponsor of the legislation.
FIT21 establishes clear and functional federal requirements over digital asset markets. It provides the robust consumer protections and regulatory clarity necessary for the digital asset ecosystem to thrive in the U.S.—cementing American leadership of the global financial system of the future while reinforcing our role as a hub for innovation.
The legislation provides the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital commodities and clarifies the Securities and Exchange Commission’s (SEC) jurisdiction over digital assets offered as part of an investment contract. Additionally, the bill establishes a process to permit the secondary market trading of digital commodities if they were initially offered as part of an investment contract. Finally, H.R. 4763 imposes comprehensive customer disclosure, asset safeguarding, and operational requirements on all entities required to be registered with the CFTC and/or the SEC.
FIT21 will protect consumers by strengthening transparency and accountability with market participants:
Digital asset developers will be required to provide accurate, relevant disclosures, including information relating to the digital asset project’s operation, ownership, and structure; and
Digital asset customer-serving institutions, like exchanges, brokers, and dealers will be required to:
Provide appropriate disclosures to customers;
Segregate customer funds from their own; and
Reduce conflicts of interest through registration, disclosure, and operational requirements.
FIT21 will strengthen the market by protecting digital asset projects:
Digital asset developers will have a pathway to raise funds; and
Participants will have a clear process to determine which digital asset transactions are subject to the SEC’s jurisdiction and the CFTC’s jurisdiction.
FIT21 will protect digital asset customer-serving institutions by:
Establishing clear lines between the SEC and CFTC; and
Creating comprehensive registration regimes to permit them to lawfully serve customers in digital asset markets.
Congressman Mike Flood’s Statement on FIT21’s Passage
Today, U.S. Congressman Mike Flood issued a statement following the passage of H.R. 4763, the Financial Innovation and Technology (FIT) for the 21st Century Act, also known as FIT21.
“FIT21 delivers a digital asset framework that provides meaningful regulatory clarity, fosters innovation, and protects American investors. Since FTX’s collapse in 2022, there’s been broad awareness of the need for investor protection rules to prevent this from ever happening again. Under the framework adopted today, FTX would not have been able to register or cause the massive harm they did to American investors. Thank you to Chairman McHenry and Chairman Thompson for their work in assembling a broad bipartisan coalition of support for this important legislation, and I urge my colleagues in the Senate to take it up quickly so that we can protect investors and grow our digital financial future.”
Senate committee advances bipartisan WRDA
The National Grain and Feed Association (NGFA) today commended the Senate Committee on Environment and Public Works for unanimously advancing the Thomas R. Carper Water Resource Development Act of 2024 (WRDA), which authorizes navigation and ecosystem restoration projects for the U.S. Army Corps of Engineers (Corps). NGFA released the following statement:
“Today’s markup demonstrates the dedication of Chairman Tom Carper, D-Del., and Ranking Member Shelley Moore Capito, R-W.Va., and fellow lawmakers to maintaining waterways infrastructure legislation on a biennial basis in a bipartisan fashion. In addition to authorizing 81 feasibility studies and eight new or modified construction projects, this bill directs the Corps to expedite the completion of several ongoing studies and projects from past WRDAs. The U.S. inland waterways system is essential to the operation of NGFA-member companies and the agricultural supply chain, with barges moving about half of all grains to export grain elevators. Efficient inland locks and dams and modern ports are critical to America’s comparative infrastructure advantage. We appreciate the efforts of committee leaders and Transportation and Infrastructure Subcommittee Chairman Mark Kelly, D-Ariz., and Subcommittee Ranking Member Kevin Cramer, R-N.D.”
Ricketts Supports EPW’s Water Resources Bill with Major Conservative & Nebraska Wins
Wednesday, U.S. Senator Pete Ricketts (R-NE) released the following statement on the Senate Committee on Environment and Public Works’ passage of the bipartisan Thomas R. Carper Water Resources Development Act (WRDA) of 2024.
“This bill has so many wins for the state of Nebraska,” said Senator Ricketts. “I appreciate that this bill outlines priorities for the U.S. Army Corps of Engineers that will improve customer service, help our state build more resiliently, reduce flood risks, and promote economic growth.”
The WRDA 2024 grants the U.S. Army Corps of Engineers (USACE) authorization to proceed with projects and studies aimed at addressing water resource challenges in communities nationwide, including several in Nebraska.
Ricketts’ WRDA Wins for Nebraska
Demand Better Customer Service:
Sec. 106 would require the USACE to update the Permit Finder Dashboard within 30 days of the end of the fiscal year and reflect the current processing timelines. This would ensure users are being given the most updated estimates for processing timelines.
Sec. 233(c) would direct the Government Accountability Office to review and issue a report on trends, public resources, and opportunities to expedite the review of applications for permits under the Section 408 program, including the use of categorical permissions.
Improve Ice Jam Management
Sec. 221 would require USACE to submit a report to Senate Committee on Environment and Public Works the on ice jam prevention and mitigation, as well as plans for engagement with state and local stakeholders regarding impacts to critical infrastructure.
Sec. 313 increases funding levels for the existing removal of obstructions fund and includes ice jams as a covered obstruction.
Require More Transparency
Sec. 223 would require USACE to brief the Senate Committee on Environment and Public Works on opinions or funding requests in order carry out the actions in the Missouri River Mainstem Reservoir System, the operation and maintenance of the Bank Stabilization and Navigation Project, the operation of the Kansas River Reservoir System, and the implementation of the Missouri River Recovery Management Plan.
Sec. 233(a) would require more accurate project cost estimates. It would direct the GAO to review and report on the accuracy of project cost estimates developed by the USACE.
Sec. 233(f) would direct the GAO to review and issue a report on opportunities to facilitate improved environmental review processes for project studies, including through the consideration of expanded use of categorical exclusions, environmental assessments, or programmatic environmental impact statements.
Sec. 338 urges the USACE to make decisions regarding the operations of civil works projects within the Missouri River Basin publicly available, increasing transparency for communities in the Basin.
Memorial Day Travelers Could Save Millions by Filling Up with Unleaded 88 (E15)
This Memorial Day weekend, AAA projects 38.4 million drivers will hit the road over the holiday, the second-highest travel forecast for the holiday since the organization began tracking in 2000. Based on this data, Growth Energy, the nation’s largest biofuel trade association, estimates that U.S. consumers would collectively save up to $115 million in fuel costs this weekend by choosing Unleaded 88 (E15) —a fuel blend made with 15% bioethanol.
“This summer, drivers across the country can save big money with lower-carbon Unleaded 88,” said Growth Energy CEO Emily Skor. “As we kick off the summer driving season, we encourage motorists to take advantage of the deep cost savings and environmental benefits of this engine smart, earth kind fuel option.”
Thanks to the Biden administration’s recent announcement of a waiver protecting year-round access to the higher biofuel blend, motorists looking to save money at the pump can fuel up with a lower-carbon option that’s also more affordable than standard fuel. In fact, last summer consumers saved 15 to 30 cents per gallon on average at the more-than 3,400 gas stations nationwide that offer E15, also branded as Unleaded 88 (UNL88).
“The summer travel season has the potential to be an expensive period for many Americans, spending money on lodging, meals, and activities,” added Skor. “Fortunately, thanks to the affordable and homegrown renewable fuel options generated by American farmers and biofuel producers, consumers have access to E15, which is more affordable and widely available.”
Apart from the cost savings, E15 also offers an immediate opportunity to cut carbon emissions by as much as 17.62 million tons. It can be used in 96 percent of vehicles on the road today and contributes to cleaner air, reducing smog-forming pollutants and lowering emissions of particulate matter up to 50 percent compared to gasoline.
Travelers can plan their road trip and locate gas stations selling Unleaded 88 (E15) and other ethanol blends using the Get Biofuel Fuel Finder. To date, Americans have driven more than 100 billion miles on Unleaded 88.
Wednesday, May 22, 2024
Wednesday May 22 Ag News
Roller Crimper Workshop Postponed
Due to inclement weather and road closures, the Nebraska Extension's Roller Crimper Workshop scheduled for May 22, 2024 has been POSTPONED to Wednesday, June 5.
The workshop will be held at the same time and place. (Registration at 9 a.m., with program from 9:30-11:30 a.m. at ENREEC)
Details: https://cropwatch.unl.edu/2024/farmers-invited-attend-roller-crimper-workshop-may-22
For more information, contact Katja Koehler-Cole or Aaron Nygren at ENREEC.
NEW Siouxland Feedlot Forum to be held June 18th
Alfredo DiCostanzo, NE Extension Beef Systems Educator
June 18, 2024
10:30 am registration
Program, 11 am to 3:30 pm
South Sioux City Marriott Riverfront
385 East 4th Street
South Sioux City, NE 68776
We are pleased to invite feedlot consulting nutritionists, technical service professionals serving feed, feed ingredient, feed additive, and drug manufacturing companies, feedlot owners and managers, graduate students, and faculty to the 1st edition of the Siouxland Feedlot Forum. This event is an educational partnership between South Dakota State University, the University of Nebraska-Lincoln and allied industry.
Registration details and fee
$100/person Registration site is open until June 11, 2024, at Siouxland Feedlot Forum (sdstate.edu) or onsite.
Pre-forum events (at South Sioux City Marriott Riverfront)
· Westway will hold a reception starting at 5:30 pm on June 17
· Zinpro will host a session on the role of zinc in antiviral immunity at 8:30 am on June 18
Lodging
A block of rooms is available at the Marriott South Sioux City Riverfront for $107 a night plus taxes. Please reserve directly on or before June 4, 2024 with Marriott reservation by calling 402-494-4000.
TURK INVESTIGATING SOIL HEALTH OVER TIME, A KEY TO CLIMATE RESILIENCE STRATEGIES
Nebraska’s Judith Turk will use an $845,000 grant from the National Science Foundation’s Faculty Early Career Development Program to dig into the degradation of topsoil.
Agricultural productivity across the Great Plains is tied directly to the soil that covers it. Known to soil scientists as Mollisols, these thick, dark, organic-rich soils are inherently productive and fertile, helping farmers cultivate high-yielding crops.
But the very traits that make these soils conducive to agriculture are problematic for researchers trying to track the change in soil quality over time — which has important implications for food security and resilience to climate change.
“The thick topsoil in the Great Plains masks the effect of gradual degradation until it reaches an advanced stage,” said Turk, an associate professor and soil scientist at the University of Nebraska–Lincoln. “Degradation processes are slow, but they are happening.”
In her five-year soil study, which will integrate research, education and outreach, Turk will compare legacy soil data to today’s soil data to quantify change across various characteristics. She also will launch a new course at the university, introduce new teaching strategies and develop an outreach program for middle school students.
Pinpointing the degree and pace of soil change — and how deeply into the soil that change extends — is critical for developing effective strategies to mitigate and adapt to climate change. Turk’s research will inform soil carbon sequestration strategies and advance understanding of soil health, which is key to agricultural systems’ capacity to withstand extreme weather.
“The healthier our soils are, the more resilient our ecosystems and agricultural systems are,” Turk said.
To assess soil change, Turk is using data collected between 1968 and 1994 as a reference point. She will compare that information to data collected using modern methods of soil structure analysis, enabling her to gauge how Great Plains soils are changing over the course of decades. Turk will investigate standard soil characterization data, including physical and chemical properties of the soil, and conduct computed tomography analysis of pore networks in the soil.
Together, these characteristics help scientists understand how air, water, nutrients and energy are moving through the soil. These dynamics are critical to understanding how the pedosphere — the uppermost layer of the Earth’s surface — functions as part of the global carbon cycle.
Turk’s approach represents a new way of looking at the study of soils. Her research is reshaping the traditional definition of pedology as the study of soil’s natural bodies.
“This idea of thinking of soil as a body that’s undergoing continual rapid change over decadal time scales is a different approach to pedology,” she said. “This will help us to transform our view of the information that’s conveyed through static soil maps.”
Turk expects her findings to establish that the trajectory of soil change is closely linked to the way land is used. Clarifying this relationship will illuminate the degree to which today’s soil maps — important decision-making tools for farmers, builders and beyond — are accurately classifying soils and capturing change. She is particularly interested in exploring the long-term impacts of irrigation: Her preliminary data indicate irrigation may increase soils’ carbon storage capacity.
Turk also aims to advance knowledge about a much-debated topic in the soil science field: the erosion-induced carbon sink. This idea — that carbon released via agricultural erosion is absorbed into depositional soil, where it can accumulate in a stable fashion — challenges the conventional view that agricultural erosion is a significant source of atmospheric carbon. In some areas, erosion may lead to higher levels of carbon storage in the soil.
“This is an aspect of the carbon cycle that we need to understand better,” Turk said. “The strategy of looking at soil data from a long time ago and soil data from today will help to shed more light on it.”
Turk’s research is innovative for exploring human-driven soil change below the surface. So far, most research in this area has focused on the top layers, because they are in closest contact with people. Turk predicts human impacts extend much deeper, likely affecting water flow through the subsoils — a major factor in soil health and carbon storage ability.
Turk will launch a first-of-its-kind course at Nebraska that pairs soil science field methods with the stories of people on the land where she is conducting research. Through this course, Turk hopes to deepen students’ affective learning, which refers to acquiring knowledge via emotional engagement.
She will also engage middle school students by infusing soil science with art and technology. Partnering with the Lincoln Community Learning Centers, which provide academic programming in underserved areas, Turk and her students will offer after-school sessions and summer camps focused on connections between the soils, soil color, the carbon cycle and climate change. Activities will include soil painting and using color sensors to measure soil color.
The National Science Foundation’s CAREER award supports pre-tenure faculty who exemplify the role of teacher-scholars through outstanding research, excellent education and the integration of education and research.
Bacon Discusses Priorities in 2024 Farm Bill
Last week, House Agriculture Chairman Glenn “G.T.” Thompson (R- PA) released his draft of the 2024 Farm Bill. This legislation is the product of nearly two years of work, and it shows. Farmers and ranchers, rural America, the food insecure, and the American taxpayers are well served in this bill. Rep. Don Bacon (NE-02), who has served on the Ag committee since 2017, highlighted some of his priorities in the bill.
Farm Safety Net Programs
American farmers and ranchers are experiencing one of the steepest declines in net farm income in history alongside record inflation. For too long, administrations have used the Commodity Credit Corporation as a “get out of jail” free card as an alternative to establishing lasting trade relations. As a result, from 2018 to 2022, 70 percent of all direct support to producers came from outside traditional farm support programs created and budgeted by Congress. As a result, this farm bill will repeal the President’s Section Five authority, saving $107 billion. Government payments cannot and will not replace the free market. Farmers and ranchers get underpaid when the government swoops in, and the administration’s failed foreign policy gets off scot-free. This is not fair to the American farmer and rancher or taxpayers.
As a result, Congressional intent is being asserted by forcing this Administration and future administrations to take accountability for their failures while ensuring the crop insurance and commodity support programs our nation’s food supply and our rural communities rely upon are preserved. Farm bill programs should not be for the good times, they should be for the bad times.
Congress will also be increasing reference prices for commodities like Corn, Soybeans, Wheat, and Sorghum. This will allow these programs to keep up with inflation and the economic uncertainty of the agricultural industry.
Trade is an integral part of the agricultural economy. For this reason, we will be doubling investment into the Marketing Access Program (MAP) and Foreign Market Development (FMD) programs that promote agricultural trade. Studies have shown that for every dollar the U.S. government spends on this program, $24 of commerce is added to the U.S. economy. This program uses the power of the free market to bring economic prosperity to rural communities like Nebraska.
“When it comes to the issue of trade, this administration has been totally silent,” said Bacon. “Biden is the first President since Jimmy Carter to not establish a single new trade agreement. This has a real impact on American families, especially those who depend on agriculture to make a living. This investment in trade expansion will allow us to seek out new trade opportunities, expand existing ones, and pay the bills in the process.”
Conservation
The Biden Administration’s so-called “Inflation Reduction Act” (IRA) dedicated billions of taxpayer dollars to conservation programs with such stringent climate sideboard restrictions that important preexisting projects were neglected. This isn’t an effective climate policy agenda. For this reason, Congress will be reallocating those dollars into programs that are known to work like EQUIP and CSP without the crippling climate sideboards instituted by the Biden Administration. This reinvestment of funds will result in the largest investment in conservation in recent memory and more science-based, locally-led, and efficient conservation efforts across the nation that conserve nature.
I Believe in The Future of Agriculture
As someone who grew up on a farm in the fields of Illinois, Rep. Bacon is passionate about the next generation of farmers and ranchers. As part of his 2024 farm bill agenda, he made the next generation a priority.
“I am excited that Chairman Thompson included two of my bills about the next generation of farmers into the farm bill,” said Bacon. “The Youth Lead Act will ensure that organizations like 4-H and FFA have funding to continue making a difference in the lives of students through vocational agricultural education.”
“The SOIL Act will finally open the door for beginning farmers and ranchers to obtain financing by allowing producers to be preapproved for FSA Loans,” Bacon added. “Far too often, beginning farmers and ranchers are unable to be competitive when purchasing land. Purchasing farmland is seasonal and there is no reason young producers should be forced to wait months on end before receiving permission to purchase land.”
Under this legislation, these young Americans will be able to participate in auctions and not be forced to pass up good opportunities to acquire land. Just like how homebuyers can be preapproved for a mortgage, so too will these hard-working producers.
Agricultural Security is National Security
“Our national security and our agricultural industry are linked,” said Bacon. “There are only nine meals between civilization and total anarchy. For this reason, I introduced the American Agricultural Security Act of 2024, and I am happy that Chairman Thompson included it in this year’s farm bill.”
This bill will provide much-needed funding to our nation’s land grant institutions to research cyber, biological, physical, and trade threats to American agriculture. Adversaries like China are constantly looking to undermine our nation’s most vital industry and it is happening beneath our nose. We are behind the curve in combatting these efforts, however, this is the start we need to craft a national agriculture security strategy. The United States feeds the world and these efforts to disrupt this internationally connected industry threaten the stability of the entire world.
“I am happy to lead the AFIDA Improvements Act which also made it into this year’s farm bill,” said Bacon. “It addresses the national security concerns stemming from the growing purchases of farmland by the Chinese Communist Party. This legislation, among other things, will ensure that there is timely and detailed data sharing of foreign investments in agricultural land, better reviewing and validating of information, and identify those foreign entities who do not file notification they have purchased land in the United States.”
Having actual processes in place will strengthen the security of our nation in the event of nefarious foreign agents, such as the CCP, trying to purchase agricultural lands within our nation. These lands must be protected as they are essential to feeding our country and other parts of the world, feeding livestock, fueling vehicles, and other uses.
Nutrition and SNAP
“No Administration, current or future, should be allowed to arbitrarily change the level of benefits SNAP recipients receive without data-driven information,” said Bacon. “Until President Biden took office and changed it, the thrifty food plan, the market basket that SNAP is derived from, was completed on a cost-neutral basis since its creation in 1975. Because of this bill, the market basket will once again be cost neutral.”
“That does not mean the hungry will go unfed, or that SNAP benefits will be cut,” he added.
Meanwhile, household income for those working and on SNAP is projected to increase by 10 percent due to an increase in the earned income deduction and children living in homes receiving SNAP benefits will be able to work without that income counting against household eligibility.
“By allowing those on SNAP to work without penalty, we are creating a system that rewards personal responsibility and working their way out of poverty,” said Bacon. “Chairman Thompson makes all these changes without taking dollars from any other title of the farm bill—the first time in nearly 40 years.”
Chairman Thompson’s bill also includes Rep. Bacon’s SNAP Staffing Flexibility Act which addresses important and pressing SNAP application backlogs.
“States are overwhelmed with the number of SNAP applications because they are suffering due to inflation and economic downturn, which can cause an influx of applications because families are struggling to stretch their grocery budget,” said Bacon.
To process more applications, H.R. 5094, The SNAP Staffing Flexibility Act of 2023, was introduced by Rep. Bacon and Rep. Lori Chavez-DeRemer (OR-05), to give states the option to hire outside contractors during these periods to alleviate the workload of their employees and ends the contract when the backlog had been cleared.
“When people apply for SNAP benefits, it is because they are already struggling,” said Bacon. “Ensuring that their applications are processed promptly is important to getting people the assistance they need. In economically challenging times, giving the states, who are closer to the problem, more autonomy will result in better outcomes for applicants.”
Other programs such as the Children’s Health Insurance Program (CHIP) and other safety net programs successfully utilize contractors to address backlogs, and H.R. 5094 would allow SNAP the same flexibility. Modernizing these programs will give states more control over their administrative process in a way that does not threaten the jobs of their current employees. These changes will lead to faster processing times, which means that families will get the assistance they need sooner.
“In addition to giving the food insecure the tools they need to lift themselves out of poverty, we are increasing Congressional oversight and cracking down on SNAP fraud,” said Bacon. “Every day, there is an estimated $34 million of SNAP overpayments made in the U.S., depriving Americans of their hard-earned money and compromising benefits to those who need it most. This bill will make certain States are reporting all erroneous payment errors, no matter how big or small.”
The loophole that allows SNAP benefits to be continuously used across state lines is also being closed. Far too many people in this country perpetrate the crime of SNAP benefit trafficking across state lines. This provision will finally force the USDA to crack down on this criminal industry. States like New York and California have refused to publicize documents related to the administration of federal taxpayer dollars in their respective SNAP programs.
Congress is reasserting our Constitutional authority to conduct meaningful oversight of this federally funded state-run program. Waste, fraud, and abuse will be documented, investigated, and resolved more efficiently, and effectively because of these new provisions.
The Ag committee will “markup” the 2924 Farm Bill on Thursday, May 23 and decide which priorities of the entire committee make the final piece of legislation.
Midwest Dairy Awards Educational Scholarships to Nebraska Students
Midwest Dairy Nebraska Division awarded $5,000 in scholarships to six high school and college students for the 2024-2025 academic school year. Recipients were chosen based on past and present leadership involvement in their school, local community, and dairy community. On the application, recipients addressed what they see as the biggest challenge facing the dairy industry and how their future career plans address those challenges.
Midwest Dairy Nebraska Division awards educational scholarships to full-time college students whose family owns a dairy farm or those who are employed on a dairy farm contributing to Midwest Dairy checkoff. It’s all part of the organization’s continued commitment to invest in creating dairy advocates as well as developing the next generation of dairy leaders.
Congratulations to the following 2024 Nebraska Division Scholarship Award Recipients:
· Kaitlyn Hanson, of Mead, Nebraska, was awarded $1,500 and is currently at the University of Nebraska-Lincoln, majoring in Animal Science and minoring in Agricultural Economics and Fisheries & Wildlife. Kaitlyn is the daughter of Jay and Jenna Hanson.
Allison Engelman, of Diller, Nebraska, was awarded $1,000 and is at the University of Nebraska-Lincoln, majoring in Agriculture Education. Allison is the daughter of Adam and Brooke Engelman.
Shan Sherwood, of Lincoln, was awarded $1,000 and is enrolled at the University of Nebraska-Lincoln, pursuing his master’s degree in Animal Science. Shan is the son of Matt and Sheila Sherwood.
Makenna Held, of Leigh, Nebraska, was awarded $500 and is currently at the University of Nebraska-Lincoln, majoring in Business Management with a minor in Accounting. Makenna is the daughter of Keal and Heather Held.
Brooke Hilgenkamp, of Arlington, Nebraska, was awarded $500 and is enrolled at Kansas State University, majoring in Animal Science and minoring in Spanish. Brooke’s parents are Steve and Jen Hilgenkamp.
Halie Racicky, of Mason City, was awarded $500 and will be attending the University of Nebraska at Kearney, majoring in Early Childhood Education and minoring in Special Education. Halie is the daughter of Greg and Joyce Racicky.
For more detailed information about the Midwest Dairy Nebraska Division Educational Scholarships, go to: https://www.midwestdairy.com/young-dairy-leaders/dairy-scholarships/nebraska-scholarships/.
ACE Announces “The Gold Standard” Conference Theme, Opens Registration for 37th Annual Event
The American Coalition for Ethanol (ACE) has opened registration for its 37th annual “The Gold Standard” themed conference taking place this summer starting Wednesday, August 14, through Friday, August 16, at the Omaha Marriott Downtown at the Capitol District. Just as gold medals signify hard work and world-class performance, the ACE conference will showcase the ingenuity, strategies and successful collaborations of the ethanol industry. Join us as we celebrate the pursuit of greatness and strive to raise the bar for a more sustainable future.
"ACE is devoting considerable time, effort and resources to help ethanol producers and the farmers supplying them become the gold standard when it comes to producing low-carbon fuel," said Brian Jennings, ACE CEO. "We invite ethanol producers and industry members to join us in Omaha this summer to discover how they can benefit from the work ACE is undertaking to enhance the value and demand for ethanol."
"For nearly four decades, biofuel stakeholders have used the ACE conference as a platform to discuss the latest technological advancements and market updates, as well as the industry's future direction and ambitions," said Katie Muckenhirn, Vice President of Public Affairs at ACE. "Our industry is setting the benchmark for sustainable energy solutions, and we're crafting an event agenda that covers topics designed to shape the continued success of this industry."
The conference provides two days of general sessions. This year’s event will cover topics like maximizing tax credit opportunities under the Inflation Reduction Act, the retail marketplace for E15 and E85, farm-to-biofuel carbon market collaborations, trade developments and more. The conference also offers breakout sessions with subjects falling under three different tracks: leadership and management, technology and carbon.
For over 35 years, the ACE conference has focused on the people of the ethanol industry and their priorities — an event where ethanol producers meet with retailers, policymakers, researchers and other industry members. Stay tuned for more agenda details and event announcements over the coming months. For more information about the event, or to support the conference via a sponsorship, please contact Katie Muckenhirn at kmuckenhirn@ethanol.org or visit ethanol.org/events/conference.
Cattlemen’s Beef Board Announces Dairy Task Force
As the dairy climate continues to evolve, crossbreeding dairy cows with beef genetics is becoming increasingly common. To ensure the dairy perspective is represented on the Cattlemen’s Beef Board, dairy producers from across the U.S. serve on the board and currently hold 12 percent of the seats.
Dairy cattle are a significant part of the beef industry, and to encourage further collaboration between industries, the CBB has launched a new Dairy Task Force. This group will research the impact of the growing "beef-on-dairy" trend, including how dairies market their calves and how this may affect Beef Checkoff assessments, and brainstorm ideas for improving communications with dairy producers about the Beef Checkoff program.
Dairy cattle still remain a significant contributor to the U.S. beef supply. In addition to dairy and beef crossbreds, dairy finished steers, cull cows and finished heifers all produce beef for the total supply. Here’s the percentage contribution of each animal type to the entire U.S. commercial beef supply.
Finished dairy steers contribute 12.6 percent
Cull dairy cows contribute 7 percent
Finished dairy steers contribute 1.5 percent
Since 2002, the percentage of dairy beef contribution to the total U.S. beef supply has ranged from 18 to 24 percent2.
Both the beef and dairy industries work together to create a successful beef marketplace. All dairy producers selling cattle and calves pay to the Beef Checkoff a $1-per-head. Their contribution helps further beef promotion, research, education and information, helping to drive demand for beef.
NPPC, Farm Bureau Lead Nearly 1,000 in Coalition to Urge Congressional Fix to California Prop. 12
The National Pork Producers Council (NPPC) joined forces with the American Farm Bureau Federation to garner support from 900+ agricultural stakeholders supporting the federal fix to California Prop. 12 to be included in the 2024 Farm Bill.
Laying out robust arguments in a letter to U.S. House Agriculture Committee Chairman G.T. Thompson (R-PA) and Ranking Member David Scott (D-GA) on Prop. 12’s damaging implications, the coalition highlighted the following:
Marketplace mayhem: U.S. Agriculture Secretary Tom Vilsack warned the House Agriculture Committee that unless Congress provides a solution to Prop. 12, there will be “chaos in the marketplace.” Secretary Vilsack also reiterated to the Senate Agriculture Committee that “farmers do not need the chaos; they need clarity and certainty.”
Patchwork of state laws to fuel consolidation: Absent congressional action, producers are “at risk of arbitrary and conflicting state laws across all 50 states…most severely harm[ing] small and medium-sized farms by imposing massive compliance costs and forcing significant consolidation throughout agriculture.” University studies show that building “Proposition 12-compliant barns can cost 40% more than traditional barns…not including the estimated 15% higher operating costs caused by reduced productivity.” Larger farms will be able to better weather the cost, and small farms will be forced “to decide between exiting the business or entering into a production contract, resulting in fewer, larger farms owning a greater portion of sows in the U.S.”
International trade threats: Prop. 12 compliance weakens America’s ability to negotiate trade agreements, “as countries could impose similar non-science based regional restrictions on U.S. exports.” American agriculture is also concerned that Prop. 12 puts our products at risk of retaliatory action, as Canada has already raised concerns.
Producers trapped by California law: Pork producers lack the luxury of choosing not to sell into the California market. As Secretary Vilsack also said to the Senate Agriculture Committee, “There is not a choice between doing business with California and not in California. You’re essentially going to be driven by that requirement.”
Freedom to farm protected: The House Farm Bill protects producers’ freedom to farm, but it also “continues allowing states to act independently, imposing laws that impact commerce within their borders and regulating practices occurring there.”
A bipartisan imperative: The U.S. Supreme Court and Secretary Vilsack agree: “only Congress has the authority to prevent ‘chaos’ in the marketplace and provide farmers the certainty they need.”
The letter includes signatures from over 40 states, as well as the following national organizations: the Agricultural and Food Transporters Conference of American Trucking Associations, American Farm Bureau Federation, American Sheep Industry Association, Beef Alliance, Livestock Marketing Association, National Cattlemen’s Beef Association, National Corn Growers Association, National Lamb Feeders Association, National Milk Producers Federation, National Pork Producers Council, National Sorghum Producers, National Turkey Federation, Rural & Agricultural Council of America, and U.S. Cattlemen’s Association.
AFBF Calls for House Agriculture Committee Passage of Farm Bill
American Farm Bureau Federation President Zippy Duvall commented today on the House Agriculture Committee’s Farm, Food, and National Security Act.
“AFBF appreciates Chairman G.T. Thompson for his work in drafting a modernized farm bill, which we support. The Farm, Food, and National Security Act recognizes the challenges and opportunities facing America’s farmers and ranchers.
“Included in the House’s farm bill is a much-needed investment in the farm safety net, including making crop insurance more affordable, which will help farmers withstand inflation and supply costs that have outpaced current programs. New investments in specialty crop programs and research, along with preserving interstate commerce of agricultural products, will enable farmers to remain competitive in an ever-changing marketplace. Improvements to dairy programs will provide transparency, and more conservation resources will help farmers protect the resources they’ve been entrusted with. The farm bill also consists of important nutrition programs that help families facing hunger.
“Committee passage of the Farm, Food, and National Security Act would be a good start, but important legislative steps remain in this process. We thank Chairman Thompson and Ranking Member David Scott for their leadership on the House Ag Committee and encourage bipartisan passage in the House. We also call on the leaders of the Senate Agriculture Committee to follow the House’s lead and begin working on text to ensure America’s families continue to have access to a stable, affordable food supply.”
Mixed Nearby Demand Signals but Clear Long-Term Supply
Stephen R. Koontz, Dept of Agricultural and Resource Economics, Colorado State University
Cattle and beef markets over the past several weeks have been a mix of information and signals. There is a clear understanding of the coming long-term reductions in numbers and beef supplies. This week’s Cattle on Feed report will be interesting in how placements confirm this perspective. Has the persistent dry weather and poor pasture led to more placements and less heifer holding, thereby delaying the shortfalls but exacerbating their future magnitude? Friday’s report and the reports for the next two months will inform. Calf green-grass price strength is present but has been somewhat soft given the pasture conditions.
The supply side has more clarity than the demand side. Spring has not brought the typical and expected rallies to the boxed beef composite value, the Choice-Select spread, and packer margins. The cutout value has nibbled its way back above $3.00 per pound in the daily reports but the weekly reports are yet to catch up. The CH-SL spread is no longer in single digits but also a far cry from the usual seasonal strength. And packer margins, which should be heading into some of the best for the year, are not. And, if this is the best the year has to offer, then it forbodes trouble. Cash packer margins remain sub-$200 per animal gross. Substantially softer byproduct values factor into this and indicate trouble in overseas markets.
Weekly slaughter of fed steers and heifers is okay and periodically strong but only for individual weeks. The FI-fed slaughter is such that I do not anticipate a strong marketing number in the Cattle on Feed report. Last month’s Cattle on Feed revealed a large number of on-feed over 150 days and there will be some reduction but not strong. And FI steer and heifer carcass weights continue to impress. Weights have essentially held steady the last 8-9 weeks. Steers hover above 920 pounds and heifer weights are about 850 pounds. This is another 40 pounds of beef per animal given the normal seasonal decline in weights that should be observed. This is a substantial increase in beef tonnage. There is a bit of observed strength in the beef loin market but that is the only primal showing that. End meats are far stronger this year than middle meats. And again, the exception is ground beef. Ground beef is by far the strongest market and the strength in those prices is evident in cow prices.
USMEF Statement on Regional Agricultural Promotion Program Funding Allocations
On May 21, U.S. Secretary of Agriculture Tom Vilsack announced funding allocations for the Regional Agricultural Promotion Program (RAPP), which utilizes Commodity Credit Corporation (CCC) funds to diversify export markets for U.S. agricultural products.
U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued the following statement:
USMEF is honored to participate in RAPP and we thank Secretary Vilsack and the staff at USDA for their vision and leadership in implementing this program. The additional investment in foreign market development is very timely and will be especially helpful in expanding demand for U.S. red meat in emerging export markets. USMEF also appreciates the role Congressional leaders played in the development of RAPP. We thank them for their support of this program and for prioritizing Market Access Program (MAP) and Foreign Market Development (FMD) funding in the new Farm Bill.
ASA, WISHH & USSEC Welcome USDA FAS Regional Agricultural Promotion Program Funding
The American Soybean Association, ASA’s World Initiative for Soy in Human Health program, and the U.S. Soybean Export Council welcome the funding announced today as part of the initial tranche of the U.S. Department of Agriculture Foreign Agriculture Service’s Regional Agricultural Promotion Program (RAPP). This new source of funding will be invested to facilitate diversification and growth of U.S. soybean exports, help meet growing global protein demand, and address nutrition and food security.
“ASA commends USDA for its commitment to strengthening U.S. agricultural trade by providing Commodity Credit Corporation funds through RAPP to maintain and develop markets and address global food security. We appreciate the work by Senator Stabenow, Senator Boozman, and Secretary Vilsack to initiate this much-needed program,” said ASA President Josh Gackle, a soybean grower from North Dakota. “New international markets are critical to sustaining U.S. soybean growers’ success. This program will open new opportunities while improving upon the success of other programs vital to U.S. soy, like MAP and FMD.”
“We applaud Secretary of Agriculture Tom Vilsack and USDA FAS for the creation of RAPP, a critically important and timely program that builds upon decades of success achieved with the Market Access Program, Foreign Market Development Program and most recently the Agricultural Trade Promotions Program,” said Lance Rezac, USSEC chair and Kansas farmer. “Current examples of innovative USSEC programs aimed at diversifying markets and growing exports include the Soy Excellence Center and the Right to Protein campaign. The USSEC team is excited to build on these successes and bring to life the creative program concepts included in our RAPP funding proposal.”
“Trade promotion programs are vital to soy growers,” said WISHH Chair Roberta Simpson-Dolbeare. “Utilizing MAP, FMD, and ATP funds, WISHH has successfully leveraged those dollars to increase market access, address technical barriers to entry, and create on-the-ground capacity and demand for U.S. soy. Through RAPP, WISHH looks to expand the Training Program for Young Professionals, a hands-on capacity building program for youth and young professionals, in addition to expanding the program and scope in Ghana and Nigeria. We will also invest in expanding U.S. soy’s presence in Central Asia and throughout sub-Saharan Africa. WISHH looks forward to the new opportunities this funding will create for ASA’s WISHH to invest in developing and emerging markets and appreciate the support of USDA FAS and Secreta ry Vilsack.”
U.S. Grains Council To Receive Additional Funding From New U.S. Department of Agriculture Program
The U.S. Grains Council (USGC) today received notice of additional funding from the U.S. Department of Agriculture (USDA) under its Regional Agriculture Promotion Program (RAPP). The award will disperse $17 million to the Council for use in developing markets that will be crucial to the future of U.S. agriculture exports.
“USDA’s decision to distribute additional investment is a wonderful show of confidence in the Council and its partners to continue blazing a trail in foreign markets on behalf of U.S. agriculture,” said Brent Boydston, USGC chairman. “The future of the Council and its programming has never been brighter and I am certain there will be incredible results for producers, buyers and sellers alike.”
RAPP was launched after a request from the U.S. Senate Committee on Agriculture, Nutrition, and Forestry to bolster, diversify and expand market opportunities for U.S. agriculture products. This round of funding is the first of five tranches, with the next one coming in 2026.
The majority of the Council’s RAPP funding will be used to enhance its programming in Africa, Latin America, the Middle East, South and Southeast Asia, where rapid population and economic growth is creating demand for high-quality agriculture products that the U.S. industry will be positioned to meet.
Other portions of the investment will be committed to solidifying U.S. producers’ stances in existing top export markets and to add staff in the Council’s Washington, D.C. headquarters to properly manage and administer the Council’s higher international activity.
“RAPP funding is a game changer for the Council and other cooperators representing U.S. products in international markets and will allow a significant expansion of the great work that Council staff are already doing worldwide,” said Ryan LeGrand, USGC president and CEO. “Thank you to USDA for its constant support of the Council and for recognizing the need to continue improving U.S. export market promotion efforts.”
NGFA details the dangers of a Canadian rail stoppage
The National Grain and Feed Association (NGFA) urged the Canadian Industrial Relations Board to take action to avert a rail strike or lockout in comments submitted May 21.
Shutdowns or slowdowns of rail-dependent facilities would result “in harmful consequences for Canada’s agricultural producers and industry as well as domestic and global food security,” NGFA said.
As negotiations between the Teamsters Canada Rail Conference and the Canadian National and Canadian Pacific Kansas City Railways continue, the Board has requested comments regarding the impacts of lost rail service on the movements of food throughout Canada.
NGFA noted that many of its member companies rely on rail services that transit to and via Canada. A strike or lockout “would lead to ripple effects across the entire industry.”
For example, the livestock industry depends on rail to deliver corn and other feed grains, and biofuels operations, flour mills and agricultural export facilities require uninterrupted rail service. “A stoppage of rail service would materially harm Canada’s farmgate prices for commodities, Canada’s ag shippers and exporters and its global customers,” NGFA stated.
“The impact of a strike would be particularly severe as trucking is not a viable option for many agricultural shippers due to their high-volume needs and the long distances for many of the movements,” NGFA noted.
NGFA concluded: “An operational railroad is essential for agricultural production and food distribution, and we thank you for your responsiveness to this imminent supply chain issue.”
Cooperative Ventures Leads Traction Ag’s $10 Million Series A to Advance Farm Accounting Technology
Cooperative Ventures has announced an investment in Traction Ag, Inc., a leader in farm accounting technology and developer of the first cloud-based accounting software delivering solutions to farmers across the United States. A joint venture between two leading farmer-owned cooperatives, CHS and GROWMARK, Cooperative Ventures focuses on developing mutually beneficial commercial relationships between startups and cooperative partners. Traction Ag’s $10 million Series A round was led by Cooperative Ventures and joined by Plymouth Growth and existing investors.
Traction Ag provides farmers and ranchers with the functionality and data they need to make critical decisions on the farm. The company’s cloud-based accounting software, coupled with robust data integrations, equips farmers with meaningful insights that can improve farm profitability through better decision-making. The company has experienced success through organic growth, strategic investments and partnerships over the past year. Recently, the company acquired and integrated solutions from Granular and Conservis. These acquisitions are accelerating the build-out of premium and enterprise features within the Traction Ag platform.
“From the very beginning, our priority at Traction Ag has been to deliver value to farmers and give them peace of mind when making decisions,” said Traction Ag CEO Dustin Sapp. “This round of funding will enable us to scale faster, reaching even more farmers with our decision-making solutions that drive real value at the farm gate.” Traction is currently focused on enhancing its business platforms, increasing service offerings and building partnerships in the agriculture industry.
Traction Ag fits in Cooperative Ventures’ farm business enablement focus area. This sector includes tools and technologies, which help farmers manage their complex business operations. “Traction Ag is a compelling investment for Cooperative Ventures,” said Heather Thompson, director of innovation at GROWMARK. “We believe the company has a strong foundation to build upon. Also, the company’s mission to empower financial decision-making and operational profitability is very closely aligned with the missions of both CHS and GROWMARK, making it a natural fit for Cooperative Ventures to support.”
The investment from Cooperative Ventures and Plymouth Growth is a testament to the strength of Traction’s readiness to scale and track record of strong growth. “Traction Ag and its existing investors have built a deep and proven team and a board of directors with strong commitment to and experience in the agriculture sector,” said Plymouth Growth Partner Brook Critchfield. “Plymouth Growth is thrilled to bring more than 20 years of experience in growing category-leading software companies alongside the industry leadership of CHS and GROWMARK in order to help drive Traction’s next phase of growth.”
Through this relationship, Traction can create valuable connections within the vast network of CHS and GROWMARK farmer-owners and customers. “Together with GROWMARK, we believe this investment will equip our owners and customers with essential tools for their businesses,” said Ben Van Straten, CHS innovation director. “Cooperative Ventures was created to focus on innovative solutions and emerging technologies that positively impact agriculture and we believe that Traction has the ability to do just that.”
Farmers find carbon equals cash when working with Truterra
Truterra, a leading agricultural sustainability business that offers consultation, tools and solutions for the ag and food value chain, today announced that its carbon program has paid more than $21 million to farmers for the sequestration and reduction of over 1.1 million metric tons of carbon in its first three years.
Along with these results, the Truterra® carbon program has seen significant growth in total acres enrolled. In 2023, total acres increased by 99% vs. 2022. In 2022, total acres enrolled increased by 151% vs. 2021. All of these results help position Truterra as a valuable source for connecting food and ag companies with farmers to drive sustainable practices on farms.
“Our carbon program is gaining momentum as a leader among farmers and retailers. Our differentiated approach matches agronomics with economics to help farmers make sustainable practice changes,” said Truterra President Jamie Leifker. “What’s more, these carbon assets could help organizations with sustainability goals who choose to make agriculture part of their toolkit of solutions. Truterra will continue to focus on creating new markets for farmers and retailers, while helping them make the best agronomic, economic and sustainable decisions for their operations.”
The Truterra® carbon program is also experiencing growth in farmer participation. In 2023, the number of farmers participating in the carbon program grew by 58% compared to 2022.
“In many ways, we’re returning to the way that my grandfather or my great-grandfather would have farmed, but with new technology and new metrics. Through the Truterra carbon program, we are doing this by changing some of our cover crop mixes, and I believe that higher yields will come from it,” said Kelly Garrett, a farmer enrolled in Truterra’s carbon program. “I’m looking at the big picture to secure the best for my farm and the best for my family. And I'm very proud that it goes hand in hand with Truterra’s carbon program.”
As a subsidiary of Land O’Lakes, Inc.’s over 100-year-old farmer-owned cooperative, farmers are at the center of everything Truterra does. The Truterra® carbon program is delivered through Truterra’s network of local ag retail advisors, who work directly with farmers to help them make the best decisions for their fields. Truterra’s farmer-friendly approach also means that qualified farmers can achieve optimal earning potential by paying based on actual carbon stored rather than a set per acre payment.
For more information, visit https://www.truterraag.com/Food-CPG-Companies.