Thursday May 17 Ag News

Rural Mainstreet Index at Highest Level in Almost 5 Years: Rising Regulatory Greatest Banking Challenge 

The Creighton University Rural Mainstreet Index climbed above growth neutral in May for a fourth straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. This is the first time since the July 2015 that we have recorded four straight months of overall indices above growth neutral.  

Overall: The overall index rose to 56.3, its highest level since July 2013, and up from 53.5 in April. The index ranges between 0 and 100 with 50.0 representing growth neutral.
 
“Surveys over the past several months indicate the Rural Mainstreet economy is trending upward with improving, and positive economic growth. While agriculture commodity prices have improved recently, prices remain below breakeven for a large share of grain farmers,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. 

More than one-third, or 36.4 percent of bank CEOs identified rising regulatory costs as the top economic challenge to their banking operations over the next five years.

Farming and ranching: The farmland and ranchland-price index for May declined to 42.2 from April’s 42.9. This is the 54th straight month the index has fallen below growth neutral 50.0.

Bankers were asked the average cash rent per acre of farmland in their area. On average, bankers reported $239 per acre which is down by approximately 3.0 percent from this time last year.

The May farm equipment-sales index climbed to a weak 43.8 from April’s 37.8. This marks the 57th consecutive month the reading has moved below growth neutral, 50.0.
 
Below are the state reports:
Nebraska: The Nebraska RMI for May expanded to 56.0 from April’s 54.0. The state’s farmland-price index increased to 42.0 from last month’s 39.9. Nebraska’s new-hiring index sank to 52.8 from 65.4 in April. Nebraska's Rural Mainstreet job growth over the last 12 months is 0.0 percent

Iowa: The May RMI for Iowa slipped to 54.0 from 54.5 in April. Iowa’s farmland-price index for May slipped to 42.1 from April’s 43.3. Iowa’s new-hiring index for May sank to 53.5 from April’s 67.5. Iowa’s Rural Mainstreet job growth over the last 12 months is minus 0.9 percent.

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

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



World Pork Expo’s seminars present the latest pork production ideas and insights

Pork professionals will have access to the latest production and management strategies at the PORK Academy and Business Seminars on Wednesday, June 6, and Thursday, June 7, at the 2018 World Pork Expo. This year’s lineup includes 20 seminars, all of which are free with an Expo registration. Topics range from sow productivity and longevity to export and domestic pork marketing to manure management to optimizing piglet growth and much more.

The seminars are among the many events that visitors will find at the 30th World Pork Expo, presented by the National Pork Producers Council (NPPC) June 6-8, at the Iowa State Fairgrounds, in Des Moines, Iowa. Other featured activities include the world’s largest pork-specific trade show, live-hog shows and sales, networking opportunities and lots of grilled pork.

“The Expo seminars provide an exceptional opportunity for pork producers and their employees to hear the latest production information and interact with the leading experts on a wide range of topics,” says Jim Heimerl, NPPC president and producer from Johnstown, Ohio. “If you think back over the past 30 years, Expo has presented hundreds of free seminars where producers could collect ideas and insights to apply to their operations back home.”
Business Seminars cover a wealth of topics

A record number of Business Seminars are on the docket this year, and attendees should plan ahead to make the most of their Expo visit. Whether they’re looking for ways to maximize piglet survivability, better understand today’s consumers or fine-tune ventilation to boost productivity, attendees will find proven, practical advice at the Business Seminars.

All of the Business Seminars will take place in the Varied Industries Building. Here’s the information-packed lineup:

Wednesday, June 6:
    8:00 a.m. to noon — “The impact of manure management," presented by Corteva Agriscience. Attendees will hear research results that impact swine manure application timing and the benefits to soil health.
    8:00 to 9:00 a.m.; 9:30 to 10:30 a.m.; 11:00 a.m. to noon — “Can agriculture win the battle of misinformation?" presented by U.S. Farmers & Ranchers Alliance. This seminar, which will be offered three times, addresses why it’s important for pork producers to engage with consumers and share their stories.
    1:00 to 2:00 p.m. — “Improving pig productivity is the ‘new normal’,” presented by Tonisity. A panel of experts will explore changing expectations around on-farm antibiotic use and its impact on pork production.
    2:30 to 3:30 p.m. — “How much is too much for pre-wean mortality? Is there a better way?” presented by Tonisity. Panelists will explore practical ideas for reducing pre-weaning mortality to minimize the impact on an operation’s overall profitability.
    1:00 to 2:30 p.m. — “Nutrition optimization and impacts on pig survivability and growth,” presented by Kent Nutrition Group. Better pig nutrition leads to healthier pigs and lower costs. This seminar will outline options to get piglets off to the right start.

Thursday, June 7:
    8:00 to 9:30 a.m. (Spanish version); 9:30 to 11:00 a.m. (English version) — “The Vaccinologist,” presented by Zoetis. The goal of sending more healthy pigs to market requires preventing disease from the start. This seminar is designed to build pig caregivers’ understanding of the “why” behind effective vaccinations.
    8:00 to 10:00 a.m. and 10:00 a.m. to noon — “Do you know how the complex landscape of respiratory health impacts your business?” presented by Boehringer Ingelheim. This multi-faceted seminar, to be offered two times, will outline new data and management ideas for addressing respiratory disease and its impact from nursery to finishing.
    11:00 a.m. to noon — “Threats adapt: Are you ready? An in-depth look at the PCV2 genotype and current coverage,” presented by Zoetis. This seminar will discuss the genetic drift and shift of porcine circovirus type 2 and why a vaccination program needs to provide broad and extended coverage.
    1:00 to 2:30 p.m. and 3:00 to 4:30 p.m. — “Voices of influence: An in-depth look at how various influencers are shaping meat-buying trends and how it impacts producers at the farm level,” presented by Zoetis. This seminar, offered twice, will explore consumer research and how the public’s expectations of how hogs are raised and cared for on the farm increasingly influence meat-buying trends.
    1:00 to 3:00 p.m. — “SKOV Pro Grow: How to optimize pork production by providing your animals with optimum climate conditions,” presented by SKOV A/S USA. Attendees will learn about online ventilation solutions and review Danish and U.S. data from the Pro Grow pig monitoring and weighing system.

PORK Academy addresses productivity, competitiveness and markets
Included in Expo’s seminar offering is PORK Academy, with 10 free sessions for pork producers and their staffs. Presented by the National Pork Board and Pork Checkoff, the PORK Academy seminars are designed to give producers a deeper understanding of their checkoff investments.

The Pork Checkoff also provides a weather, crop and hog market outlook session on both Wednesday and Thursday in its hospitality tent, beginning at 12:30 p.m.
Other Expo highlights worth noting

“It’s exciting to see Expo’s growth this year, with more trade show exhibits, hospitality tents, seminars and youth involved in the live-hog shows and activities,” Heimerl says. “It reflects the advancements pork producers have made over the past 30 years and that vitality moving forward.”

There’s still time to register online to attend the 30th World Pork Expo, June 6-8. All the latest details, including daily event schedules, hotel availability and more, are available online at the World Pork Expo website... www.worldpork.org. 



Candidates Sought for 65th Iowa Dairy Princess

Midwest Dairy’s Iowa Division is seeking candidates to serve as Iowa’s 65th Dairy Princess. The entry deadline is July 1.

The Iowa Dairy Princess serves as the official goodwill ambassador for the state’s dairy industry, helping communicate with people about dairy farmers’ stewardship for animals and natural resources, the safety and wholesomeness of dairy products, and the economic importance of dairy to Iowa’s economy.

Eligible candidates include young women from 17 to 24 years old from active Iowa dairy farms, who work on a dairy farm, or whose parents are employees of an Iowa dairy farm. Candidates must also have completed their junior year of high school.

Young women who live in counties with a dairy promotion board princess contest must be nominated through their county program. However, candidates who live in counties without an active princess contest can submit an application to represent their own county. A full list of eligibility requirements can be found at Midwestdairy.Com/For-Farmers/Dairy-Princess-Contests.

Potential candidates can learn more about the contest and dairy princess program at the Dairy Iowa Youth Communications Workshop to be held Wednesday, June 6, 2018, at the Heartland Acres Agribition Center in Independence, Iowa. The session will include an interactive workshop for high school and college students and an overview of the state princess contest. Learn more or register here, or by contacting IowaDairyPrincess@gmail.com or calling 712-551-7918.

Judging will be held Aug. 7-8, 2018, in Ankeny, Iowa. Selection is based on communications skills, general knowledge of the dairy industry and enthusiasm for dairy promotion. The 65th Iowa State Dairy Princess will be crowned Wednesday, Aug. 8, at 7:30 p.m. at the Multi-Media Center of the Cattle Barn at the state fairgrounds in Des Moines.

The 2018-19 Iowa Dairy Princess and Alternate will both receive $1,000 scholarships from Midwest Dairy Iowa Division.

For complete rules and application materials, contact LeAnne Philips at 712-551-7918 or leanne.philips@gmail.com or visit Midwestdairy.Com/For-Farmers/Dairy-Princess-Contests.



NAWG Weighs in on Amendments to the 2018 House Farm Bill

Following yesterday’s House Rules Committee meeting to determine which amendments would be considered, the Agriculture and Nutrition Act of 2018 (H.R. 2) now heads to the House floor for debates and amendment votes. In anticipation of the debate, NAWG sent a letter to the House stating its positions on relevant amendments that will be voted on.

“NAWG continues to push back against any amendments that would undermine the current structure of the crop insurance program as well as other amendments that would hurt farmers,” said Jimmie Musick, Sentinel, Oklahoma farmer and NAWG President. “Proposing significant restrictions on crop insurance ignores the needs of rural America and will increase the cost of program for all farmers.”

In the letter, NAWG calls attention to a few amendments and notably opposes Congressman Tom McClintock’s (R-CA) Amendment #93 which would phase out the farm safety net, including federal crop insurance, the Agriculture Risk Coverage (ARC) program, the Price Loss Coverage (PLC) program, and sugar policy. Additionally, NAWG voiced opposition towards Congresswoman Virginia Foxx’s (R-NC) Amendment #32 which cuts the sugar program, ultimately outsourcing U.S. sugar jobs to subsidized foreign industries.

“Net cash farm income for wheat farmers is expected by USDA to be down 21 percent this year compared to last year, which is why we need to pass a Farm Bill that works for all growers who can then have access to these beneficial programs,” continued Musick.



NCBA Strongly Urges "No" Vote on Brat/Blumenauer Farm Bill Amendment

The National Cattlemen’s Beef Association (NCBA) and more than 40 of the nation’s most influential commodity trade associations are urging Congress to stand with farmers, ranchers, and rural communities by voting down the amendment offered by U.S. Reps. Dave Brat (7th Dist. – Va.) and Earl Blumenauer (3rd Dist. – Ore.) to the 2018 Farm Bill. 

The Brat/Blumenauer amendment will negatively impact agricultural producers in all 50 states who raise, buy, and sell commodities by shackling commodity research and promotion programs commonly known as "checkoffs." It is intended to improve the transparency and accountability of commodity checkoff programs, but in turn, takes control away from producers and will gut the programs that build demand for agricultural products.

In a letter sent to Congress today, the commodity groups emphasize the amendment’s duplicative and counterproductive burdens on producer-funded programs.

“These sweeping prohibitions are the result of the amendment’s ban on contracts with any party that engages in advocacy – even though the advocacy has nothing to do with the entity’s partnership with checkoffs,” the letter states.

Restrictions include sweeping prohibitions that ban contracts with any party that engages in advocacy on agricultural issues. In practice, this would mean that self-help checkoff programs are prohibited from collaborating with a broad range of stakeholders, including universities, public health associations, and producer education organizations. Currently these stakeholders use checkoff dollars to support producers and consumers with critical research on food safety, nutrition, marketing, and production.

“Our members see the checkoff programs as an investment in their families’ future which they and their fellow producers have voluntarily adopted. At a time of low farm incomes, we cannot afford to lose these important programs.”



Oppose Brat-Blumenauer Farm Bill Rider

The National Pork Producers Council is urging House lawmakers to oppose an amendment to the 2018 Farm Bill that would gut the federally authorized commodity research and promotion programs, commonly known as checkoffs.

NPPC joined more than 40 agricultural organizations on a letter sent yesterday to House Agriculture Committee Chairman Michael Conaway, R-Texas, and Ranking Member Collin Peterson, D-Minn., asking that House members vote against the rider being offered by Reps. Dave Brat, R-Va., and Earl Blumenauer, D-Ore.

“The amendment is ill-conceived, too broad and poorly drafted,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “It would have far-reaching, detrimental impacts on the marketing of and research for agricultural commodities and ultimately harm all farmers and ranchers. It addresses a problem that doesn’t exist and does so in a manner that would result in significant, long-lasting harm to American agriculture and free enterprise.”

Among other things, the amendment would prohibit checkoffs and their employees and “agents” from engaging “in any act that may involve a conflict of interest, anticompetitive activity, unfair or deceptive act or practice …” Significantly, it also would prohibit checkoffs from contracting with any entity with an agricultural interest before the federal government.

Checkoffs routinely contract with university researchers, private entities, organizations and individuals to, for example, conduct research on food safety and nutrition and to market and promote their respective commodities.

Since 1966, Congress has authorized 22 industry-funded research and promotion boards, or checkoffs. The U.S. Department of Agriculture’s Agricultural Marketing Service oversees the checkoffs to ensure fiscal accountability and program integrity. The checkoffs annually fund more than $1 billion of research, promotion and consumer education programs.

“Like the other checkoffs, the Pork Checkoff provides tremendous value to our producers through research on swine diseases, genetics, better production methods and through its pork promotion efforts,” Heimerl said. “At a time when it seems like everyone is going to the government with his or her hand out, American agriculture, through the checkoffs, is funding its own programs. The checkoffs are funded by producers for producers.”



USTR To Review Thailand’s GSP Trade Benefits

The Office of the U.S. Trade Representative (USTR) has agreed with a request from the National Pork Producers Council to review Thailand’s eligibility for the U.S. Generalized System of Preferences (GSP) program because of that country’s failure to provide access to its market for U.S. products, including pork.

NPPC, which last month filed a GSP review petition with USTR, is urging the Trump administration to withdraw or limit the benefits Thailand receives under the preferential trade program, which gives duty-free treatment to certain goods entering the United States. The program allows for removal of a country’s benefits if it fails to provide the United States “equitable and reasonable access” to its market.

“Thailand for years has willfully denied equitable access to our products,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “We’re pleased that USTR is going to look into the unfair treatment U.S. goods are getting from Thailand.”

Despite the United States being Thailand’s No. 1 export market, with almost $4 billion of products annually sent to America under the GSP, the southeast Asian nation has a de facto ban on U.S. pork imports through high tariffs and several non-tariffs barriers.

Its 2015 average applied Most Favored Nation tariff rate on agricultural imports was nearly 31 percent – its average MFN rate on non-agricultural products was 7.7 percent – and its ad valorem tariffs were as high as 337 percent. Most of the highest rates apply to agricultural imports that compete with domestic goods, including beef, pork and poultry.

Among its non-tariff restrictions, Thailand does not accept uncooked pork and pork offal from the United States, and it rarely, if ever, grants import licenses for U.S. pork. Even if such permits are granted, Thailand imposes a fee for imported pork currently equal to about $220 per metric ton compared with $7.50 per metric ton for domestically produced pork.

The restrictions have severely limited U.S. pork exports to Thailand. In 2017, for example, the United States shipped just 31 metric tons of pork to Thailand’s 69 million people, who annually eat about 726,000 metric tons. (The United States sent more pork to Tonga’s 107,000 people.)

“Thailand’s treatment of U.S. pork provides a clear basis for removing or limiting its GSP benefits,” Heimerl said. “We hope the administration will take action as a way to convince that country to rescind its current import restrictions on U.S. pork and other products.”



U.S. Ethanol Exports Continue Upward Streak

Seven months into the 2017/2018 marketing year, the United States has exported nearly one billion gallons of ethanol, up 15 percent year-over-year and an indication of ethanol exports’ support for U.S. grain demand.

March ethanol exports exceeded 215 million gallons, the second highest monthly sales on record behind nearly 220 million gallons in February 2018. Both months far exceed the previous monthly export record of 178 million gallons in December 2011.

“The incredible cost-competitiveness of U.S. ethanol has enabled sales to break through tariffs and set new records despite numerous trade policy issues,” said Mike Dwyer, U.S. Grains Council (USGC) chief economist. “U.S. ethanol remains on track for another banner year of exports.”

Brazil remains the top importer of U.S. ethanol with 96 million gallons in sales in March 2018, bringing the total for the marketing year to almost 349 million gallons. These sales occurred despite a slow start following the implementation of a 20 percent tariff on imports outside a quota equaling approximately 40 million gallons quarterly.

“Last year, U.S. ethanol had duty-free access to the Brazilian market, resulting in higher-than-ever exports,” Dwyer said. “This year, U.S. ethanol is subject to a 20 percent out-of-quota tariff, yet is already up 12 percent year-over-year, further demonstrating that Brazil does not have enough ethanol to meet demand, as well as the economic advantage of U.S. supplies.”

“While sales to Brazil are expected to cool slightly due to the beginning of sugarcane harvesting season, the United States is on track to potentially set another record for ethanol exports to this market this marketing year.”

Other large year-over-year increases in demand also came from markets in which U.S. ethanol is subject to high tariff measures.

Sales to China are up 57 percent year-over-year to 77.4 million gallons thus far in the marketing year, making China the fourth largest export market for U.S. ethanol. However, it is unclear if the United States will export any additional ethanol to China this marketing year following the imposition of another 15 percent to the existing 30 percent tariff on the U.S. product.

Even with trade barriers in the European Union, U.S. ethanol exports have increased 749 percent compared to the same time the previous year, to 47.2 million gallons. Almost all of these exports are believed to be re-exported to other markets in the Middle East and Africa, not for consumption within the European Union.

Understanding the uniqueness of each international market is key to continued successful promotion of U.S. ethanol. The Council and its biofuels industry partners identify and analyze potential markets and develop strategies tailored to the culture and conditions of each while working closely with established customers who already gain economic, environmental and human health benefits from ethanol.



USDA: April Hired Workers Down 4 Percent, Wage Rate Increases 4 Percent from Previous Year

There were 648,000 workers hired directly by farm operators on the Nation's farms and ranches during the week of April 8-14, 2018, down 4 percent from the April 2017 reference week. Workers hired directly by farm operators numbered 534,000 during the week of January 7-13, 2018, up slightly from the January 2017 reference week.

Farm operators paid their hired workers an average wage of $13.72 per hour during the April 2018 reference week, up 4 percent from the April 2017 reference week. Field workers received an average of $12.72 per hour, an increase of 4 percent. Livestock workers earned $12.78 per hour, up 2 percent. The field and livestock worker combined wage rate, at $12.74 per hour, was up 3 percent from the 2017 reference week. Hired laborers worked an average of 40.2 hours during the April 2018 reference week, down slightly from the hours worked during the April 2017 reference week.



Secretary Perdue Applauds Red Tape Reduction for Farmers

U.S. Secretary of Agriculture Sonny Perdue today applauded the removal of a burdensome regulation that has long plagued family farms. The rule requiring producers to obtain Data Universal Number System (DUNS) and System for Award Management (SAM) numbers to participate in U.S. Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS) programs has been eliminated. Congress included this repeal in the FY 2018 Omnibus spending package, USDA’s official regulatory change will be published in the Federal Register tomorrow.

“I’m pleased Congress helped us to achieve one of our regulatory goals of cutting red tape for producers utilizing conservation programs by exempting them from SAM and DUNS requirements,” Secretary Perdue said. “These numbers were designed for billion-dollar government contractors, not everyday farmers trying to support their families. These changes help streamline the customer experience for farmers, which is a top priority at USDA.”

Prior to this rule change in the 2018 Omnibus spending bill, DUNS and SAM numbers were required for any federal contract application. This became an onerous regulation for small farms, when it was intended for large government contractors. DUNS and SAM registration is still required for the following:
-    Partnership agreements entered through the Regional Conservation Partnership Program (RCPP).
-    All agreements with eligible entities under the Farm and Ranchland Protection Program (FRPP)
-    Agreements under the Agricultural Land Easement (ALE) component of ACEP.
-    Partnership agreements under the Wetland Reserve Enhancement Program (WREP) component of ACEP-Wetland Reserve Easements (WRE).
-    Watershed operations agreements with project sponsors.
-    Emergency Watershed Protection Program (EWP) agreements with project sponsors, including Recovery and Floodplain Easements.
-    All cooperative, contribution, interagency, or partnership agreements of Federal contracts used by NRCS to procure goods or services.

NRCS advises participants in its programs to ignore any emails, phone calls or other communications from third-party vendors offering assistance for registering in SAMS or applying for a DUNS number.



Inocucor Changes Name to Concentric

Inocucor Corporation, a developer and producer of proprietary biological and essential plant nutrient inputs for specialty and broadacre crops, today announced it will change its name to Concentric Ag Corporation.

Concentric by definition means “having a common center,” and the new name represents the company’s dedication to standing alongside growers to find crop solutions that will usher in a safe, smart Second Green Revolution. The name Concentric also symbolizes growth and vitality in nature like rings in a tree, a nod to the company’s products designed to help growers’ crops reach their full harvest potential.

President and CEO Donald R. Marvin said the name change marks the beginning of a new era for the company, as it emerges from a start-up to an established leader in biologicals and essential plant nutrient products for growers.

“Our new name Concentric signifies a pivotal moment for the company,” Marvin said. “We have closed our Series B funding, completed our first strategic acquisition and have hired a very smart group of executives to drive commercial expansion in North America and beyond. We are focused on leading the industry with biological and plant nutrient combinations that bring real solutions to growers.”

Just this week, Concentric occupied its new 30,000-square-foot U.S. headquarters and commercialization office in Centennial, Colo., near Denver. Its Montreal-based, R&D Technical Center of Excellence was recently expanded to 20,000 square feet. In April, Concentric acquired ATP Nutrition, a producer of science-based plant nutrients based in Oak Bluff, Manitoba, Canada.

The company employs about 65 people in the U.S. and Canada today, and anticipates adding another 25 to 30 high-level scientific and managerial professionals over the next year.

For more information on Concentric and the origin of its new company name, visit www.ConcentricAg.com.