Monday May 7 Ag News

Generations Join in Celebrating The Beef Products They Raise
Dawn Caldwell, Edgar, Neb.
Chair, Federation of State Beef Councils
Among the most gratifying aspects of the cattle industry is its multi-generational nature. For instance, I grew up listening to my Grandpa’s stories of raising cattle and taking them to the stockyards, and riding with my Dad while we showed the calf crop to a field man for the auction market. We would sit in the sale barn with nervousness and pride as our calves went through. I never considered a life without cattle.

I’m not unique in that. Families have taken a tremendous amount of pride in their work and this lifestyle for more than a century. Whatever your role in the industry is, I hope you have a story of satisfaction and success (or better yet, several) while being in the beef raising business.

One of the stories that should bring you pride is when consumers hear: “Beef. It’s What’s For Dinner.” Your checkoff dollars over the past quarter century have helped make this a successful, well-recognized brand throughout the country, and Beef Checkoff Program efforts continue to utilize this slogan to show consumers just how nutritious, convenient and delicious beef is for their families, as well as describe our efforts in raising beef animals.

For example, a “Rethink the Ranch” series of campaign videos this year demonstrates that we in the industry are careful stewards of beef animals, and share the consumers concern about how food is produced. Another campaign element, “nicely done, beef” digital advertising, is positioning beef to consumers as the true combination of good taste and nutrition it is. Research-based information delivered to health professionals is another element of the checkoff-funded campaign.

For decades, the multi-generational families that make up the beef community have embraced the checkoff as a method of celebrating their product. In fact, way back in 1922 people who raised cattle started pooling their efforts to promote beef, at the rate of 5 cents per railcar load. Those folks were innovators! It just makes sense that if you enjoy doing something like raising cattle, you had better do what you can to help promote your product.

The pride and desire to promote beef in a collaborative effort has certainly not faded from generation to generation – nor has the desire to be in control of it at the most local level. Several states initiated their own beef checkoff programs in the 1950s and 60s, beginning with California and Montana in 1954, followed by Alabama and Florida in 1955.

The Federation of State Beef Councils was officially formed in 1963 as a national voice for these state cattle producer efforts. Through the next two decades, more states got on board. State checkoff collections rose significantly from 1980 to 1985, from $6.8 million to $18.6 million. All of this was prior to the current mandatory checkoff written into the 1985 Farm Bill, and a producer referendum on it in 1988, with more than 79 percent voting in favor of retaining it.

Among expectations of producers back then was that a national self-help program would have producer input with strong state controls, while retaining state-national program coordination. That expectation was written into the Act and Order. What a smart design! What more can a person ask for than to have the opportunity to represent the dollars they invest, and to directly monitor their investment?

I understand many people in our industry can’t take the time to sit on a board, but they can depend on fellow producers to speak on their behalf. Those who feel strongly about how dollars should be invested have many ways for getting their views across – including seeking a board seat in their respective state, and going on to represent their fellow producers on national committees and boards.

Generations are important in our industry. Along with our wonderful memories and experiences, we can thank our predecessors for creating some intelligent foundations on which to build as we promote and celebrate the industry we love.



Ricketts Celebrates Beef Month in Nebraska

Today, Governor Pete Ricketts was joined at the State Capitol by representatives from Nebraska’s beef industry to celebrate Beef Month.  Beef Month is celebrated in Nebraska every May to highlight the importance of the cattle industry to the state.  The Governor hosted a press conference to sign a proclamation and give an update on the growing beef industry in Nebraska.

“May is Beef Month in Nebraska, a time to recognize the state’s beef producers and celebrate the many ways Nebraska leads the nation in beef,” said Governor Ricketts.  “Nebraska is the ‘Beef State’ because our beef producers are second-to-none in quality and lead the nation in market share.  Nebraska ranks number one in the nation in commercial red meat production and all cattle on feed.”

Governor Ricketts has been a constant advocate for the growth of Nebraska’s beef industry.  He has led trade missions to countries like Japan and China to encourage the growth of Nebraska’s beef exports.  He has also promoted Nebraska beef domestically in places such as New York City.

In 2017, Nebraska led the nation in beef exports with a total export value of $1.26 billion.  Beef exports increased by 12 percent from 2016.  Total beef exports have exceeded $1 billion each year since 2014.  In 2017, Nebraska’s top beef export markets were:
·      Japan - $372.9 million
·      South Korea - $252.9 million
·      European Union - $136.8 million
·      Mexico - $134 million
·      Hong Kong - $113 million

Nebraska is first in the nation in rankings for beef exports, commercial cattle slaughter, and cattle on feed.

Governor Ricketts was joined at the press conference by Nebraska Department of Agriculture (NDA) Director Steve Wellman, Nebraska Cattlemen President Galen Frenzen, and Nebraska Beef Council Vice Chair Dawn Caldwell.

“Nebraska is a national leader in all aspects of the beef industry including production, exports, and cattle on feed, so we’re pleased that Governor Ricketts proclaimed May as Beef Month,” said NDA Director Steve Wellman.  “The continued growth of the beef industry in Nebraska and the top rankings we’ve achieved show our support of agriculture as a whole and confirms what we already know: that delicious Nebraska beef is being enjoyed by consumers here at home and around the world.”

“There are a lot of unsung heroes who put their heart and soul into producing the best beef in the world raised right here in Nebraska,” said Galen Frenzen, President of the Nebraska Cattlemen.  “Whether you’re fixing fence on a ranch, delivering feed to the cattle, or hauling the beef to restaurants, everyone’s important to showcasing Nebraska beef!”

“Exports are a tremendous value to beef producers and we are proud to work with NDA to promote beef from Nebraska in places like Hong Kong, the European Union and other parts of the globe,” said Dawn Caldwell, Vice Chair of the Nebraska Beef Council.  “We are also very fortunate to have beef research being conducted at both the U.S. Meat Animal Research Center and the University of Nebraska.  These are just two areas that we are investing the beef checkoff into to support our beef community.”



Ricketts Announces International Trade Mission to Mexico

Today, Governor Pete Ricketts was joined by Nebraska Department of Agriculture (NDA) Director Steve Wellman to announce plans to lead a trade mission to Mexico this August.  Mexico is Nebraska’s second-largest ag export market, according to the U.S. Department of Agriculture’s Economic Research Service.

“Trade is an essential part of growing Nebraska and continues to be a top priority for my administration and me,” said Governor Ricketts.  “Mexico is Nebraska’s second-largest ag export market and a major market for Nebraska beef, so we want to thank the people of Mexico for their past business and grow more opportunities for Nebraska’s farm and ranch families.”

In 2016, total agricultural exports from Nebraska to Mexico equaled an estimated $956 million out of a total agriculture export value of $6.4 billion.  Mexico is Nebraska’s largest export market for corn, wheat, dairy, sugar and sweeteners, and animal fats, and the state’s second-largest export market for soybeans and soybean products, dry edible beans, sorghum, distillers grains, feeds and fodders, and planting seeds.

NDA Director Wellman stressed the importance of increasing agricultural trade opportunities in Mexico.

“The key to export success is building on existing relationships and creating new opportunities in international marketplaces,” said NDA Director Wellman.  “The farmers and ranchers joining us on this trade mission are the best people to tell the story of Nebraska agriculture and to show consumers and agribusiness leaders the quality ag products that Nebraska has to offer.”

The Governor’s Office, NDA, and Mexican officials developed the Nebraska delegation’s itinerary for the upcoming trade mission.  The delegation is tentatively expected to meet with Mexican national officials, agricultural officials, and industry leaders currently using Nebraska products.

The Governor encourages Nebraska agriculture representatives to consider joining the Mexican trade mission for an opportunity to meet with government officials, community leaders, and industry representatives.  Because space is limited, company officials interested in participating in the trade mission should register by emailing Stan Garbacz at stan.garbacz@nebraska.gov.



Residual Herbicides Best Suited to Spring Marestail Management
Amit Jhala - NE Extension Weed Management Specialist

Marestail, also known as horseweed or Canada fleabane, is a winter or summer annual weed in Nebraska. Control is most successful in the fall or early spring at the rosette stage. If not controlled then it will compete with corn or soybean throughout the growing season, potentially causing significant yield reduction.

Marestail is sensitive to most herbicides labeled for its control early in its growth stage, i.e. the rosette stage. Often growers may rely primarily on post-emergence herbicides applied after the marestail is clearly visible; however, it’s recommended that burndown herbicides (with soil residual activities) be applied in fall/early spring to avoid potential crop-weed competition during summer.

For more information on identifying and managing marestail see these Nebraska Extension resources:
-    Identification of Winter Annual Weeds - http://extensionpublications.unl.edu/assets/pdf/ec304.pdf
-    When is a Good Time to Scout and Control Glyphosate-Resistant Marestail? - https://cropwatch.unl.edu/2017/when-good-time-scout-and-control-glyphosate-resistant-marestail



Soilborne and Early Seedling Pathogens and Delayed Planting in Corn and Soybeans
Tony Adesemoye – NE Extension Plant Pathologist

Soilborne pathogens and early seedling diseases may be more frequent in corn and soybean this year due to cool weather conditions this spring and delayed planting. The USDA’s National Agricultural Statistics Service reported that 17% of corn and 6% of soybean were planted in Nebraska by April 29. Last year 32% of corn and 7% of soybean had been planted by this time.

Cold temperatures and adequate moisture favor growth and development of seedling pathogens, such as Rhizoctonia and Fusarium. In areas with higher moisture and saturated soil, other soilborne pathogens such as Pythium and Phytophthora will be favored.

Conditions this spring will allow pathogens to build up populations and disease may be more severe if favorable conditions continue. With delayed planting, there is greater chance for infection to occur and seedlings may be more susceptible or vulnerable to infection at early stages from soilborne pathogens.

Seeds that become infected may be unable to germinate or emerge. Those that can emerge may develop seedlings that are stunted. Root tips, which play important roles in nutrient and water uptake, may be attacked and killed. This year, we can expect to see more damping-off, root rot, stunting, seedling blight, poor stand establishment, and poor seedling vigor (Figure 1). This may eventually lead to higher yield losses, depending on how long favorable conditions persist.
Management

By the time symptoms of soilborne pathogens are seen, there is little to nothing that can be done to control the diseases. However, certain actions may be taken to prevent or reduce the chances of disease occurrence in future crops:
-    Plant fungicide-treated seeds.
-    Plant resistant varieties.
-    Use biological control products/agents.
-    Increase field drainage to reduce Phytophthora diseases.
-    Rotate crops.
-    Integrate multiple disease management strategies for optimal control.



Nebraska Soybean Farmers Speak Out Against Trade Wars

Before heading to their fields and planting this morning, two lifelong Republican soybean farmers shared with members of the media how the broadening trade war will have devastating consequences for Nebraska’s economy and why they’ve decided to support Jane Raybould for U.S. Senate. Last week, China cancelled a 63k metric ton soybean order—worrying many soybean producers across Nebraska, like Ben Steffen and Bart Ruth.

“These [trade] markets did not happen overnight and by themselves. They happened with a great investment, a great deal of thought, a great deal of sweat and labor by individuals, making relationships in markets like China,” said Ruth, who produces soybeans and is former American Soybean Association president. Ruth said in 2001 China imported 27 million metric tons of soybeans which grew to $55 million by 2016. Soybeans are Nebraska’s 2nd largest harvested crop.

Ruth is troubled by the current status on trade: “we’re destroying all that work that has taken decades to put in place,” he said.

Both Ruth and Steffen pointed to the dysfunction in Washington while absent an agricultural champion who stands up for Nebraskans on Capitol Hill as bad for Nebraska’s agricultural economy.

“Jane Raybould [...] wants to serve on the ag committee from day one, which is appropriate for our state. That’s the kind of representation we deserve. I’m sorry to say that Deb Fischer did not serve on the ag committee until this year—an election year. That is not the kind of representation that our farm families and communities and industries in this state deserve. We need full-time representation and action in Washington D.C.,” said Steffen, Owner/Operator of Steffen Ag Inc. and former President of Nebraska Agriculture Builders.

Ruth recalled a time when Congress worked together to get things done, putting party aside to do what’s in the best interest of their constituents. Today, he finds the dysfunction in Washington at the expense of Nebraskans unacceptable and is “disheartened” by Senator Fischer’s unwillingness to work across the aisle to cosponsor legislation to nullify the tariffs as Senators Heitkamp (D-ND) and Flake (R-AZ) have done.

Pointing to Senator Fischer’s inability to be effective, Steffen made it clear that Senator Fischer’s campaign promises and lip service is not enough, “I am not interested in another press release[...]I’m interested in action. I’m interested in seeing that they voted on something that would take concrete action. And we’re not seeing any of that.”



IFBF pleased with Iowa Legislature's action on priority issues

Farm Bureau members appreciate passage of long-term, dedicated conservation funding and option created for Iowans lacking affordable health care

The Iowa Farm Bureau Federation (IFBF), Iowa’s largest grassroots farm organization, saw the 2018 legislative session conclude with passage of several bills on key issues for Iowa’s farm families.

Long-term water quality funding, a top priority for Farm Bureau members, received bipartisan support in both chambers of the Legislature and was the first piece of legislation signed by Iowa Governor Kim Reynolds.  The dedicated conservation funding will allow Iowa farmers and landowners to continue to grow statewide water quality efforts, provide opportunities for farmers to implement new conservation practices on their farm, and expand opportunities for communities to develop and expand collaborative conservation projects.

“Iowans agree that water quality improvement is a shared goal, and the passage of legislation with dedicated water quality funding is a historic milestone which will allow Iowa to continue to make big strides toward advancing water quality and soil health,” says IFBF President Craig Hill.  “Farmers are taking on the challenge of improving water quality, and we are excited to have the support of Governor Reynolds and the Legislature as we continue this important work with all Iowans to protect water quality and soil health.”

Lawmakers also passed a bill that allows Farm Bureau to develop plans that will provide Iowans access to a health care benefit that is more affordable than the current unsubsidized premiums under the Affordable Care Act (ACA).  The legislation continues a decades-long partnership between Farm Bureau and Wellmark to provide health coverage to Iowans.         

“According to our annual membership survey, the cost of health care is the top concern facing our members,” Hill says.  “Although it isn’t meant to be a solution for all, we are pleased that lawmakers and the Governor agree it’s an option for Iowans who need an affordable health plan that works until Congress passes a permanent solution to the current health care cost crisis.”

 According to recent reports from the Iowa Insurance Division, more than 20,000 Iowans could not afford to keep their health care coverage in 2018 because they don’t qualify for ACA subsidies.  The legislation was passed with bipartisan support, and brings a new option for many Iowans who can’t afford to purchase health care coverage in the current environment.

The legislation comes at a critical time for Iowa farmers, as the Iowa agriculture sector faces the fifth year of a downturned ag economy with high production costs and low market prices for commodities.  IFBF anticipates benefits being available by January 2019 with enrollment applications to be opened for members in the fall of this year.  

Farm Bureau members are also pleased that the Legislature’s income tax reform package included several provisions that are beneficial to agriculture.  When fully phased in, the plan includes increasing Section 179 asset expensing to $1 million, as well as fully coupling with the federal qualified business income deduction pass through.  The plan, which will ultimately eliminate federal deductibility and simultaneously lower income tax rates if certain triggers are met, also includes a revised capital gains deduction for the sale of farmland.

“With on-farm income down 50 percent over the past four years, keeping the family farm sustainable is a top priority for Iowa farm families,” says Hill.  “Including these specific tax provisions will help as Iowa’s agriculture economy weathers the storm of tight margins and high operating costs.” 



Iowa Corn Growers Association Accomplishes Key 2018 State Legislative Priorities

As the 2018 Iowa legislative session comes to a close this week, the Iowa Corn Growers Association (ICGA) President Mark Recker, a farmer from Arlington, says notable progress occurred on many legislative issues positively impacting agriculture.

“We succeeded in championing the passage of many ICGA’s state legislative priorities for the year, including increased, long-term water quality funding, extension of the biofuels infrastructure program, and expanded coupling of section 179 tax expensing,” explained Recker. 2018 ICGA State Legislative Successes include:
 ·    Long-Term Water Quality Funding - With the approval of Senate File 512, the state will now provide nearly $300 million of dedicated funding for water quality efforts over the next 12 years. ICGA farmer-leaders joined Gov. Reynolds at a signing ceremony as she recognized ICGA and many others for helping to champion water quality funding legislation through the statehouse.
 ·    Ethanol Infrastructure – Iowa's Renewable Fuels Infrastructure Program (RFIP) received a full year of funding at $3 million. The RFIP provides cost-share dollars to retailers that choose to install flex fuel pumps and other E15, E85, and/or biodiesel compatible infrastructure, increasing consumer access to renewable fuels.
 ·    Section 179- Within the tax reform legislation farmers will see an increase in the state-level coupling of the federal Section 179 tax expensing provision. The bill increases the state level from $25,000 to $70,000 for the 2018 tax year, to $100,000 in 2019 tax year, and full coupling at the $1 million level in 2020 and beyond.  Section 179 allows farmers and small businesses to expense and depreciate capital expenses on their tax returns. Iowa's farm families rely on these tax provisions to manage their cash flow and reinvest in their businesses. In a year when taxable income will be lower, reliable tax deductions remain extremely important.

“There are many factors for the success of ICGA’s state legislative policy efforts,” stated Recker. “The greatest being ICGA’s highly engaged members who foster relationships with their elected officials in bringing key issues to the table to support Iowa agriculture.”



Update for CERCLA/EPCRA Reporting:  Farms Exempt
www.epa.gov

Two environmental laws, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and Emergency Planning and Community Right-to-Know Act (EPCRA), require reporting of releases of hazardous substances that exceed reportable quantities within a 24-hour period. The purpose of the notification is for federal, state, and local officials to evaluate the need for an emergency response to mitigate the effects of a release to the community.

However, due to legislative changes in the “Fair Agricultural Reporting Method Act” or “FARM Act” in March 2018, “air emissions from animal waste at a farm” are exempt from reporting under CERCLA. These types of releases also do not need to be reported under EPCRA.

History - Regulatory Reporting Exemption for Animal Waste and Resulting Litigation
On December 18, 2008, EPA published a final rule that exempted most farms from certain release reporting requirements in CERCLA and EPCRA. Specifically, the rule exempted farms releasing hazardous substances from animal waste to the air above threshold levels from reporting under CERCLA. For EPCRA reporting, the rule exempted reporting of such releases if the farm had fewer animals than a large concentrated animal feeding operation (CAFO).

In short, all farms were relieved from reporting hazardous substance air releases from animal waste under CERCLA, and only large CAFOs were subject to EPCRA reporting.   

Several citizen groups challenged the validity of the final rule in the U.S. Court of Appeals for the District of Columbia Circuit. On April 11, 2017, the Court struck down the final rule, eliminating the regulatory reporting exemptions for farms. On May 2, 2018, the Court issued its mandate vacating the final rule.

Legislative Changes
On March 23, 2018, the Consolidated Appropriations Act, 2018 (Omnibus Bill), was signed into law. Title XI of Division S of the Omnibus Bill, called the “FARM Act” exempts the reporting of “air emissions from animal waste at a farm” under CERCLA.  On May 2, 2018, the D.C. Circuit Court of Appeals issued its mandate vacating the 2008 final rule. However, farms will remain exempt from the CERCLA reporting requirements as a result of the FARM Act.



LIVESTOCK ENVIRONMENTAL STANDARDS OPEN FOR REVIEW

The National Pork Producers Council is opening for review five standards that address the environmental management of concentrated livestock operations. NPPC serves as the secretariat of the American National Standards for Good Environmental Livestock Production Practices (GELPP). The standards, based on industry-accepted best management practices, are used as a benchmark for comparing on-farm environmental management activities and serve as a source of information to the industry and the public.

Reviewers can be those involved with livestock or poultry production on a day-to-day basis; those in academia, scientists, researchers and government regulators; food industry representatives, packers, processors and food retailers; those in agriculture associations or farm organizations; and individuals or representatives of groups having special interest in or knowledge of protection of natural resources.

Information on participating in the GELPP standards review process can be requested by emailing Knowledge@kcoe.com.



Group Urges Trump Administration to Block Sale of National Beef

In a letter sent yesterday to U.S. Attorney General Jeff Sessions and U.S. Treasury Secretary Steve Mnuchin, R-CALF USA urges the Trump Administration officials to block the proposed sale of the nation's fourth largest beef packer, National Beef Packing Company (National Beef), to Brazilian-owned Marfrig Global Foods (Marfrig).

Brazilian-owned JBS is currently the largest beef packer in the world and the second largest beef packer in the United States.  Its bid to buy National Beef Packing Company a decade ago was blocked by the antitrust enforcement action filed in U.S. federal district court by 17 state attorneys general and the U.S. Department of Justice.

Now, according to R-CALF USA, Marfrig has followed JBS to the United States so Brazil can gain additional control over U.S. fed cattle marketing outlets and the U.S. live cattle supply chain.  The sale would result in the two Brazilian firms controlling about 36 percent of the U.S. fed cattle market.  

The group contends that both JBS and Marfrig are state-controlled enterprises controlled in whole or in part by the Brazilian government, which is providing resources to the companies so Brazil can become a global, beef packing powerhouse. It asserts JBS and Marfrig are cartels with histories of being bad actors, working in parallel if not together to exploit cattle producers on one end of the supply chain and consumers on the other.

The group points out that both JBS and Marfrig were previously fined for engaging in anticompetitive conduct to drive down cattle prices, R-CALF USA states that both cartel partners now stand accused of cheating on food safety and potentially causing physical harm to American consumers by bribing Brazilian food safety officials into approving the export of unsafe beef, including unsafe beef destined for America.

"Whereas the Trump Administration has determined China is threatening our economic and national security through theft of intellectual property, Brazil is similarly threatening our economic and national security by sending forth cartel partners that cheat cattle producers through anticompetitive buying practices and consumers through willful violations of basic food safety standards.

"We respectfully urge the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Department of Justice to take decisive action to prevent Marfrig from acquiring National Beef on the grounds that Marfrig demonstrates an unrepentant propensity for:  i) exploiting cattle producers through anticompetitive buying practices; ii) exploiting consumers through the production and sales of unsafe beef; iii) violating basic food safety standards; and, iv) engaging in cartel behavior with JBS," the group wrote.



NCGA Calls on President to Allow for Increased Ethanol Blends

The National Corn Growers Association today urged President Trump to follow through on the necessary steps to implement year-round sales of higher ethanol blends, such as E15, ahead of a planned Tuesday White House meeting regarding biofuels issues.

“Year-round sale of higher ethanol blends, like E15, would replace outdated policy and provide benefits not only for farmers but also for consumers and the environment,” said NCGA President Kevin Skunes. “Corn farmers have made huge strides in increasing productivity but, at the same time, are facing a fifth consecutive year of declining corn crop receipts. A firm commitment to the RFS would help provide the stability farmers need during difficult times.”

NCGA was joined by the American Farm Bureau Federation, National Farmers Union, American Soybean Association and National Association of Wheat Growers in a letter to the President thanking him for his recent comments in support of higher blends and urging that he begin the necessary regulatory fixes to move forward with implementation.





Growth Energy’s Retail Partners Call on Trump for RVP Relief

E15 retailers from across the country are urging President Trump to ensure the Environmental Protection Agency follows through on his commitment to allow fuel containing 15 percent ethanol to be sold year-round.

“This common-sense change will allow us the opportunity to consistently offer a less expensive, higher performing fuel to our consumers at stations across America,” the companies stated in their letter to the president.

Today, there are 1,374 retail locations in 29 states selling E15 usually 3-10 cents below the price of regular gasoline. The vast majority of these locations are selling E15 along with E85 at blender pumps and making both available at nearly every dispensing location. Growth Energy works hand-in-hand with Prime the Pump, a nonprofit organization dedicated to helping build the infrastructure and distribution of higher biofuel blends, to give more and more Americans the choice of E15 at the pump.

Growth Energy CEO Emily Skor said that the outdated regulation not only hurts consumers by removing a cleaner, more cost-efficient fuel option during the summer driver season but also harms businesses.

“President Trump is a businessman, and he understands this regulation is bad for business and bad for rural America,” Growth Energy CEO Emily Skor. “Because retailers cannot offer E15 to consumers during the summer driving months, they must go through the costly and unnecessary hassle of relabeling every single E15 dispenser twice a year – costing roughly $1.5 million. This treatment confuses consumers and makes marketing a legally approved fuel more difficult than it should be.”

The retailers also urged the president you to avoid implementing a cap on the price of Renewable Identification Numbers (RINs) under the Renewable Fuel Standard (RFS) and curtail the rapid expansion of so-called small refinery “hardship” waivers.



CWT-Assisted Cheese, Butter Sales in 2018 Well Ahead of 2017 Levels

Cooperatives Working Together (CWT) helped member cooperatives secure contracts to sell 4.61 million pounds of American-type cheeses, 4.21 million pounds of butter and 923,737 pounds of whole milk powder to customers in Asia, Central America, Europe, the Middle East, North Africa and Oceania. The product will be sent to customers in 16 countries in five regions. It will be shipped from April-October 2018.

The 2018 year-to-date total of CWT-assisted dairy product sales contracts is 33.77 million pounds of cheese, 9.82 million pounds of butter and 923,737 pounds of whole milk powder. The total tonnage is up 44 percent compared to the first four months of 2017. These transactions will move overseas the equivalent of 539.45 million pounds of milk on a milkfat basis. The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

In April, CWT began implementing a strategic plan reviewed by the CWT Committee the previous month. The changes will enhance the effectiveness of the program and facilitate member export opportunities. The revisions to the program’s operating procedures, effective April 18, include:
-    Extending eligibility to whole milk powder and blends of natural cheeses (e.g. Colby/Jack);
-    Establishing eligible volumes of butter and whole milk powder at a maximum of 150 MT;
-    Establishing eligible volumes of cheese at a maximum of 300 MT;
-    Extending the delivery period for cheese to 180 days, and;
-    Allowing exceptions to the volume and delivery periods for butter and whole milk powder, if merited.

These provisions are the first in a series of anticipated changes to the program’s operating procedures. CWT is currently evaluating the possibility of including additional items on the list of eligible products. More information will be released as appropriate.



Head of FDA Pledges More Focus on Mislabeled Imitation Dairy Foods

Scott Gottlieb, commissioner of the U.S. Food and Drug Administration (FDA), said last month that the agency will take “a very close and fresh look” at plant-based dairy imitators that use dairy terms on their packaging, acknowledging that federal standards define milk as sourced from animals.

During a Senate Appropriations Committee hearing on April 24, Gottlieb responded to a series of questions posed by Sen. Tammy Baldwin (D-WI), who introduced the DAIRY PRIDE Act last year to address the mislabeling of dairy imitators. Gottlieb admitted that the agency has “exercised enforcement discretion” in not holding food marketers to that standard.

Gottlieb also told Baldwin that the agency “is committed to taking a fresh look about what we’re doing here” in the area of standards of identity. He said he “has actively stepped into this issue,” having heard the concerns of Baldwin and NMPF about the lax regulatory environment surrounding misbranded plant products using dairy terms.

He said that the FDA is requesting more information to inform its next steps. In pushing for more immediate action, Baldwin told Gottlieb that there is no need for more information, saying, “what we need is the FDA to act, and to issue guidance on enforcement of its existing dairy standards of identity.”

The National Milk Producers Federation has repeatedly urged federal regulators to enforce U.S. food labeling laws that exclude the ability of plant-derived foods from using dairy terms, as do other nations that also have regulations clearly defining milk. NMPF President and CEO Mulhern thanked Baldwin “for holding the FDA accountable for its inaction on this matter, and imploring the FDA to do its job. Going forward, we need less discretion and more enforcement from the FDA.”



California Dairies, DFA and Land O'Lakes Support the California FMMO

The three largest milk marketing cooperatives in California, California Dairies, Inc. (CDI), Dairy Farmers of America (DFA) and Land O'Lakes, Inc., today announced that, on behalf of their respective members, they have voted in support of the California Federal Milk Marketing Order (CA-FMMO) as proposed by the United States Department of Agriculture (USDA).

Since the very beginning the three cooperatives collaborated to create a potential California Federal Milk Marketing Order as a means of helping the state's dairy farmers receive more equitable, market-based milk prices.

"Three years ago, farmer leaders of our cooperatives agreed to work toward a change in the regulatory structure, one that would benefit California dairy farm families. Following careful consideration of the final decision issued by USDA, we believe the proposal will better address disparities between farm gate prices in California and the rest of the nation. It is our pleasure to now conclude this administrative process with joint support for the proposed Federal Order language," said the three cooperatives in a joint statement.

After USDA's release of the final decision on March 30, the three cooperatives held educational sessions for their member-owners to provide an overview of the final decision, address specific questions and discuss their voting preferences. Each of the cooperatives then participated in bloc voting, meaning a single affirmative vote from each cooperative represents the voting cooperative's total membership in the state.

USDA will officially announce the results of the referendum in the coming weeks. If the results support approval of the CA-FMMO proposal, the new system is expected to be in place by November 1, 2018. 




Tyson Reports 2Q Profit

Sales rose at Tyson Foods Inc. in the company's second quarter, helped by packaged foods, but rising labor and freight costs weighed on margins.

Tyson said Monday it made a profit of $315 million in its second quarter, or 85 cents a share, down from $340 million, or 92 cents a share, for the same period the year before. On an adjusted basis, Tyson said it made $1.27 a share, up from $1.01 a share. Analysts polled by Thomson Reuters were expecting adjusted earnings of $1.30 a share.

Sales at the food company increased by 7.6% to $9.77 billion, falling short of analysts' expectations of $9.89 billion. Sales of prepared foods rose 23% to $2.15 billion, benefiting from its purchase of AdvancePierre Foods. Sales of chicken and beef, which make up about 60% of the company's top-line, each rose by more than 5%, as pork sales fell 2.8%.

Higher freight and labor expenses weighed on operating income for the company's beef, pork, chicken and packaged-food segments, Tyson said, as well as one-time cash bonuses for employees.

Tyson has been trying to zero in on its protein business by selling operations that don't fall under that umbrella. It announced plans in April 2017 to divest its Sara Lee Frozen Bakery, Kettle and Van's businesses, and in late March announced plans to sell its pizza crust business TNT Crust "as part of its strategic focus on protein."

Tyson, which already closed the sale of its Kettle business, plans to close the remaining transactions in the back half of fiscal 2018.

The company said it expects annual sales between $40 billion and $41 billion, compared with its earlier target of about $41 billion, up 6% to 7% from the prior year.



Farm Credit System Reports Higher Net Earnings

The Farm Credit System reported that combined net income increased 1.8% to $1.27 billion for the first quarter of 2018, as compared with $1.24 billion for the same period of the prior year.

"The System's earnings for the first quarter remained stable despite less favorable agricultural economic conditions and continued downward pressures on the net interest spread," remarked Tracey E. McCabe, President and CEO of the Federal Farm Credit Banks Funding Corporation. "System institutions remain well-positioned to support customers in rural America as they face the challenges of uncertain global economic conditions ahead."

Net interest income was $2.0 billion for the first quarter of 2018, as compared with $1.9 billion for the first quarter of 2017. The increase in net interest income primarily resulted from a higher level of average earning assets, driven largely by increased loan volume and, to a lesser extent, growth in the liquidity investment portfolio.

Average earning assets grew $11.1 billion or 3.6% to $321.3 billion for the first quarter of 2018, as compared with the first quarter of 2017. The net interest margin increased one basis point to 2.44% for the quarter ended March 31, 2018, as compared with 2.43% for the same period of the prior year. This increase in the net interest margin resulted from a nine basis point increase in income earned on earning assets funded by noninterest-bearing sources (principally capital) due to increased interest rates.

Substantially offsetting this increase was a decline of eight basis points to 2.15% in the net interest spread for the first quarter of 2018, as compared with the first quarter of 2017. Interest rates on loans did not increase as much as borrowing costs during the first quarter of 2018 due to competitive pressures in the lending markets.

The System recognized a provision for loan losses of $69 million for the first quarter of 2018, as compared with $37 million during the first quarter of 2017. The provision for loan losses for the first quarter of 2018 primarily reflected specific reserves associated with a small number of customers in the agribusiness and rural power sectors, as well as increased credit risk exposure resulting from credit quality deterioration and growth in agribusiness loan volume.



Eggs not linked to cardiovascular risk, despite conflicting advice

Eating up to 12 eggs a week does not increase cardiovascular risk factors in people with pre-diabetes or type 2 diabetes, new research finds – despite conflicting dietary advice continuing around the world.

University of Sydney researchers aim to help clear up conflicting dietary advice around egg consumption, as a new study finds eating up to 12 eggs per week for a year did not increase cardiovascular risk factors in people with pre-diabetes and type 2 diabetes.

Published in the American Journal of Clinical Nutrition today, the research extends on a previous study that found similar results over a period of three months.

Led by Dr Nick Fuller from the University’s Boden Institute of Obesity, Nutrition, Exercise and Eating Disorders at the Charles Perkins Centre, the research was conducted with the University of Sydney’s Sydney Medical School and the Royal Prince Alfred Hospital.

In the initial trial, participants aimed to maintain their weight while embarking on a high-egg (12 eggs per week) or low-egg (less than two eggs per week) diet, with no difference in cardiovascular risk markers identified at the end of three months.

The same participants then embarked on a weight loss diet for an additional three months, while continuing their high or low egg consumption. For a further six months – up to 12 months in total – participants were followed up by researchers and continued their high or low egg intake.

At all stages, both groups showed no adverse changes in cardiovascular risk markers and achieved equivalent weight loss – regardless of their level of egg consumption, Dr Fuller explained.

“Despite differing advice around safe levels of egg consumption for people with pre-diabetes and type 2 diabetes, our research indicates people do not need to hold back from eating eggs if this is part of a healthy diet,” Dr Fuller said.

“A healthy diet as prescribed in this study emphasised replacing saturated fats (such as butter) with monounsaturated and polyunsaturated fats (such as avocado and olive oil),” he added.

The extended study tracked a broad range of cardiovascular risk factors including cholesterol, blood sugar and blood pressure, with no significant difference in results between the high egg and low egg groups.

“While eggs themselves are high in dietary cholesterol – and people with type 2 diabetes tend to have higher levels of the ‘bad’ low density lipoprotein (LDL) cholesterol – this study supports existing research that shows consumption of eggs has little effect on the levels of cholesterol in the blood of the people eating them,” Dr Fuller explained.

Dr Fuller said the findings of the study were important due to the potential health benefits of eggs for people with pre-diabetes and type 2 diabetes, as well as the general population.

“Eggs are a source of protein and micronutrients that could support a range of health and dietary factors including helping to regulate the intake of fat and carbohydrate, eye and heart health, healthy blood vessels and healthy pregnancies.”

The different egg diets also appeared to have no impact on weight, Dr Fuller said.

“Interestingly, people on both the high egg and low egg diets lost an equivalent amount of weight – and continued to lose weight after the three month intended weight loss phase had ended,” he said.

The research was supported with a grant from Australian Eggs; they had no role in the research design, conduct, analyses or writing of the manuscript.