Wednesday May 23 Ag News

Sasse Introduces Livestock Haulers Legislation

Today, U.S. Senator Ben Sasse led a bipartisan group of Senators in introducing the Transporting Livestock Across America Safely Act. Currently, overly strict trucking regulations from the Department of Transportation require mandatory rest time that put livestock at risk, especially during summer or winter months. Senator Sasse’s bipartisan legislation would give American agriculture the flexibility to safely transport livestock.

“Nebraska’s economy runs on agriculture," said Senator Sasse. "Our ranchers and haulers are professionals who make the well-being of livestock their top priority and that includes safe transportation. The Department of Transportation’s current regulations endanger livestock during hot summers and cold winters — which Nebraskans know well — causing significant stress on the animals and concern for the drivers. This bipartisan bill is good for our ranchers, good for our haulers, and good for our livestock.”

Background:
On December 18, 2017, the U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) required commercial vehicle drivers to install an electronic logging device (ELD) in their truck to track compliance with Hours of Service (HOS) rules. FMCSA exempted livestock haulers from this requirement until March 18, 2018 and a congressional delay has extended it through September 30, 2018.

Currently, for livestock and insects, HOS rules require that haulers turn on their ELD after they cross a 150-air mile radius of the origin of their load (such as cattle).  After crossing a 150-air mile radius, haulers must start tracking their on-duty time and can only drive 11 hours before taking a mandatory 10-hour rest time.

The inflexibility of these regulations will be costly for haulers and place the well-being and welfare of insects, cattle, hogs, and other livestock at risk. Current law does not allow flexibility for livestock and insects to reach their destination given the vast geography of production and processing facilities, most often spanning from coastal states to the Midwest.  Extended stops for a hauler, which would be necessitated by these HOS regulations, are especially dangerous for livestock during summer or winter months; high humidity and winter temperatures with below freezing windchills cause significant stress on livestock.

The Transporting Livestock Across America Safely (TLAAS) Act addresses these problems and eases the burden of these far-reaching HOS and ELD regulations for haulers of livestock or insects.

Specifically, the Sasse legislation:
-    Provides that HOS and ELD requirements are inapplicable until after a driver travels more than 300-air miles from their source. Drive time for HOS purposes does not start until after 300-air mile threshold. 
-    Exempts loading and unloading times from the HOS calculation of driving time.
-    Extends the HOS on-duty time maximum hour requirement from 11 hours to a minimum of 15 hours and a maximum of 18 hours of on-duty time.
-    Grants flexibility for drivers to rest at any point during their trip without counting against HOS time.
-    Allows drivers to complete their trip – regardless of HOS requirements – if they come within 150-air miles of their delivery point.
-    After the driver completes their delivery and the truck is unloaded, the driver will take a break for a period that is 5 hours less than the maximum on-duty time (10 hours if a 15-hour drive time).  

Sasse was joined by Senators Joni Ernst (R-IA), Heidi Heitkamp (D-ND), John Hoeven (R-ND), Doug Jones (D-AL), Jerry Moran (R-KS), Rand Paul (R-KY), Pat Roberts (R-KS), Marco Rubio (R-FL), Tina Smith (D-MN), and Jon Tester (D-MT).



Statement by Steve Nelson, President, Regarding Sen. Sasse Bill to Address Livestock Transport

“On behalf of the members of the Nebraska Farm Bureau I want to thank Sen. Ben Sasse for introducing the ‘Transporting Livestock Across America Safely Act.’ Today, livestock haulers are forced to operate under strict regulations that fail to recognize the unique needs that exist in the transport of live animals, including bees. In many instances, these regulations force drivers to have animals on trucks longer than necessary, needlessly exposing them to the elements in winter and summer months. Sen. Sasse’s legislation will drive needed changes to ensure our transportation regulations reflect the ideals of modern livestock farming and transport that are founded in the principals of reducing animal stress.”

“This is an important issue as livestock and agriculture production are major contributors to Nebraska’s local and state economies and the ability to transport livestock in timely and safe manners plays a major role in the success of Nebraska’s livestock sector.”

“We are fortunate to have both of our senators working to address this long-standing issue. Sen. Deb Fischer has also been very active in working with the Trump Administration to address our concerns through the regulatory process. We appreciate the work of both Sen. Fischer and Sen. Sasse to provide a one-two punch of both regulatory and legislative solutions to provide flexibility to farmers, ranchers, and truckers who have long struggled to operate within the current regulatory framework.”



NCBA Applauds Introduction of Legislation Addressing Hours of Service Changes for Livestock Haulers

The National Cattlemen’s Beef Association today applauded the introduction of the Transporting Livestock Across America Safely (TLAAS) Act, saying it would reform federal Hours of Service (HOS) rules in a way that ensures animal welfare, highway safety, and the well-being of livestock haulers. The bill was introduced today by U.S. Sens. Ben Sasse of Nebraska, Heidi Heitkamp of North Dakota, Jerry Moran of Kansas, John Hoeven of North Dakota, Jon Tester of Montana, Joni Ernst of Iowa, Marco Rubio of Florida, Tina Smith of Minnesota, Pat Roberts of Kansas, and Rand Paul of Kentucky.

“The current Hours of Service rules for livestock haulers present big challenges for our industry and can often jeopardize the health and well-being of livestock,” said NCBA President and fifth-generation California rancher Kevin Kester. “Hauling livestock is inherently different than hauling products like paper towels or bottles of water. Live cattle can’t simply be left unattended in a trailer – especially in very hot or cold weather – for extended periods of time, and this bill takes that into account. Senator Sasse deserves a lot of credit for his leadership on this issue, and we thank all of the original cosponsors who stepped up to show their support for livestock haulers and cattle producers across this country.”

Livestock haulers are scheduled to have to start using Electronic Logging Devices (ELDs) to track their driving times and distances on Oct. 1, 2018. Under current rules, they would be required to turn on their ELDs after crossing out of the 150-air-mile radius from their loading point, after which they can only drive for 11 hours before taking a mandatory 10-hour break.

The TLAAS Act takes into full consideration the fact that there are living and breathing animals on the trailer that must be kept moving, and that they must get to their destination as quickly and as safely as possible.  This bill provides for more drive time for livestock haulers, as well as granting the flexibility for drivers to rest at any point during the trip without the break counting against HOS time. This bill also allows for another 150 air mile exemption on the back end of a livestock haul to account for the wait time that occurs when unloading live animals.

“Given the unique nature of livestock hauling – often very long distances between cow-calf operations and feedlots or processing facilities – and the fact that we’re transporting live animals that must be treated humanely – this legislation is vitally important and I think it strikes a balance coupled with common sense for everybody involved,” Kester added. “I hope Congress will pass this bill as quickly as possible so we can have this issue resolved before the ELD mandate for livestock haulers goes into effect on Oct.1.”



WELLMAN PARTICIPATES IN TRADE MISSION TO CHINA, HIS FIRST AS NDA DIRECTOR

Nebraska Department of Agriculture (NDA) Director Steve Wellman is currently attending his first international trade mission as NDA director. Wellman is part of a U.S. Department of Agriculture (USDA) trade mission to Southern China, May 21-25, 2018. The trade mission trip, led by USDA Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, includes government ag leaders and representatives from many agribusiness companies and organizations.

“Southern China is a major import hub and a growing market for U.S. agricultural products,” said NDA Director Wellman. “Like Nebraska-led trade missions, USDA trade missions open doors and deliver results for farmers, ranchers and agribusinesses.”

USDA’s Foreign Agricultural Service staff members living in China helped arrange meetings between trade mission delegates and representatives of companies in Guangzhou and Shenzhen. Guangdong Province, where Guangzhou and Shenzhen are located, is the largest province in all of China in terms of population, GDP, retail and e-commerce sales.

“Consumers around the world want to know more about their food and Nebraska agriculture,” said Wellman. “This trade mission is an excellent chance to interact with consumers and agribusiness leaders in Southern China, show them the quality ag products that the state has to offer, and learn first-hand about potential opportunities and strategies for boosting Nebraska’s ag exports to that region.”

In 2016, total agricultural exports from Nebraska to China equaled an estimated $1.43 billion. That includes Nebraska’s top five ag export items to China: soybeans and soybean products; hides and skins; distillers grains; ethanol; and sorghum.

Wellman stressed the importance of growing Nebraska’s ag exports and commodities in China citing recent increases in beef and pork exports to the country.

Less than a year ago in June, 2017, a Nebraska delegation went to Beijing and Shanghai to celebrate the arrival of Nebraska beef into China for the first time in 14 years. In 2017, beef exports from Nebraska to China were $17.5 million, and Nebraska’s share of the U.S. beef exports to China was 56.6 percent, according to the USDA Global Agricultural Trade System.

Nebraska pork exports to China are increasing, as well. In 2017, pork exports to China were $15.7 million, up 24 percent from the previous year.

“The key to export success is building on existing relationships and creating new opportunities in international marketplaces,” said Wellman. “Being a part of a U.S. trade mission is beneficial too, as opening world markets and keeping them open depend a lot on trade agreements and protocols negotiated at the federal level.”

During this trade mission, the USDA will host several events to promote U.S. agricultural products. During the scheduled business meetings, there will be opportunities for the group to discuss demand and learn more about Chinese inspection procedures and processes.

“I’d like to thank Gov. Ricketts and his administration for continuing to encourage global trade and the opportunities it creates for Nebraska ag producers and agribusiness leaders to sell their products to the world,” said Wellman.



Groundwater Levels Rise 0.87 Feet on the Average in the Upper Big Blue NRD

During April-May 2018, the NRD measured 542 observation wells throughout the District and then averaged the data of all these wells.  Overall, the spring 2018 average measurement for the groundwater level change shows a rise of 0.87 feet from last spring.  The findings show that the spring 2018 average groundwater level is 3.89 feet above the “Allocation Trigger.”  As a result, there will be no allocation restrictions for the 2019 irrigation season.

The District goal is to hold the average groundwater level at, or above the 1978 level.  In 2005, the District average groundwater level reached the “Reporting Trigger” initiating groundwater users to report annual groundwater use to the District and to certify their irrigated acres.  If the District average level falls below the 1978 level (“Allocation Trigger”), groundwater allocation will begin.

Observation wells are measured in the spring of each year, allowing the water table to rebound from the previous irrigation season.  The observation wells measured are uniformly distributed and represented geographically throughout the District to provide an accurate profile of the District average.  Each well measured is assigned an area of the District based on distances to other measured wells.  This method of averaging is called the Thiessen

polygon method, and gives the average groundwater level change calculation a weighted average.  For more information, please visit www.upperbigblue.org or call (402) 362-6601.  



Registration Open for Midwest U.S.-Japan Conference in Omaha

Registration is open until Aug. 29 for the 50th Annual Conference of the Midwest U.S.-Japan Association (MWJA) being held Sept. 9-11 in Omaha.

MWJA and its partner organization -- the Japan Midwest-U.S. Association -- are the preeminent organizations dedicated to promoting economic relationships between the Midwestern U.S. and Japan. MWJA's U.S. member states include Nebraska, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio and Wisconsin.

The annual conference is considered to be the pinnacle forum for discussions about Japanese/Midwest economic relations. The conference alternates each year between Tokyo and a Midwestern city.

Registration for the conference can be accessed at www.midwest-japan.org/.

Approximately 400 dignitaries, diplomats and corporate executives are expected to be in attendance this year. This includes Governor Pete Ricketts; the governors of Midwestern states and Japanese prefectures; American and Japanese cabinet secretaries; and other government and corporate officials. Top representatives from numerous Japanese companies -- including Kawasaki, Marubeni, Toshiba, Kikkoman, Honda, Toyota, Mitsubishi and others -- will also be in attendance.

The conference is being held at the Hilton Omaha. Along with multiple speakers and plenary sessions, highlights will include a welcome luncheon at Kaneko -- Omaha's internationally renowned arts and cultural center, founded by Japanese ceramics artist Jun Kaneko -- and a farm-to-table themed banquet featuring Nebraska beef and produce.

A 50th Anniversary Gala Dinner by Kawasaki Heavy Industries will be held at Durham Museum on Sept. 10, with an Anniversary Cocktail Reception featuring Heritage Railcars by Union Pacific.

The conference website, which includes a full event schedule, can be found at www.midwest-japan.org.

More information about this year's event can be obtained through the Nebraska Department of Economic Development's (DED) Daniel Jackson at 402-802-5317 or daniel.jackson@nebraska.gov. For questions concerning registration, contact DED's Lori Shaal at 402-471-3780 or lori.shaal@nebraska.gov.



Hiland Dairy Launches New Ice Cream Packaging Along with Three New Flavors

Made with fresh, pure milk from local Hiland Dairy farmers, Hiland Ice Cream is a timeless treat synonymous with summertime. And, to celebrate summer, Hiland Dairy is introducing three new ice cream flavors of its premium ice cream:
    Hiland Time Traveler — Inspired by the revolutionary new Time Traveler roller coaster at Silver Dollar City, billed as the world's fastest, steepest and tallest spinning coaster. The new ice cream flavor features French silk ice cream spun with marshmallow bonbons, chocolate flakes and thick fudge sauce.
    Caramel Waffle Cone — Caramel ice cream with milk chocolate swirls and fudge covered waffle cone pieces.
    Cherry Chocolate Chunk — Cherry-flavored ice cream with pieces of real cherries and chocolate chunks.

All three new premium flavors are available in 48-ounce and 16-ounce containers and are available at retail locations where Hiland Dairy products are sold.

In addition to the new flavors, Hiland Dairy is introducing new packages that feature crisp graphics with light blue backgrounds. More importantly, Hiland redesigned the packaging in response to consumer and grocer requests for more food label transparency and less packaging waste.

"The new packages align with our improved transparency in food labeling, which we began implementing earlier this year with double labels on our milk products," said Rick Beaman, vice president, Hiland Dairy.

"We also wanted our ice cream packaging to create less consumer waste in landfills, and that's part of our commitment to sustainability and preserving the planet for future generations," Beaman said. "And, as we celebrate 80 years of Hiland Dairy, we thought a new ice cream package would help celebrate our longevity."



USDA Invests $256 Million in Water Infrastructure in Rural Communities -- Nebraska Receives $2.7 Million

Assistant to the Secretary for Rural Development Anne Hazlett today announced that the U.S. Department of Agriculture (USDA) is investing $256 million in 81 projects to improve water and wastewater infrastructure in rural areas in 35 states.

   “No matter what zip code you live in, infrastructure is a foundation for quality of life and economic opportunity,” Hazlett said. “Through strong partnerships, USDA is ensuring that rural communities have the modern, reliable infrastructure they need to prosper.”

   The City of Randolph, Nebraska is the recipient of $2,760,000 that will widen the Middle Logan Creek channel through town and replace the bridges that are constructed over this channel. This project will help move most of the city out of the flood plain. Moving the city out of the flood plain will rid the city of the cumbersome regulations and allow the city to develop further economically. The flood plain has limited the city's ability to attract residents and businesses since flood plain regulations restrict how buildings are constructed, and flood insurance for these properties can be expensive. Being in a flood plain also limits assistance from other federal and state economic development programs. Additional funding is provided in the amount of $8,521,884 from the U.S. Army Corps of Engineers along with contributions from the Lower Elkhorn Natural Resource District, $1,970,156; Cedar County, $120,000; and Pierce County, $75,000.

   The recently enacted Fiscal Year (FY) 2018 Omnibus spending bill includes a significant boost in financial support for water and wastewater projects. It provides $5.2 billion for USDA loans and grants, up from $1.2 billion in FY 2017. It also directs Agriculture Secretary Perdue to make investments in rural communities with the greatest infrastructure needs.

   In addition to funding in the 2018 Omnibus bill, President Trump has proposed a $200 billion infrastructure investment that allocates 25 percent ($50 billion) to rural projects.

   The loans and grants Hazlett announced today are being awarded through USDA’s Water and Waste Disposal Loan and Grant program. The funds can be used to finance drinking water, storm water drainage and waste disposal systems for rural communities with 10,000 or fewer residents.

   In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.



Darling Acquires Protein Conversion, Used Cooking Oil Business

Darling Ingredients Inc., Irving, Texas, announced that is has acquired substantially all of the assets of Kruger Commodities, Inc. including protein conversion facilities in Hamilton, Mich., and Tama, Iowa, along with a protein blending operation and used cooking oil collection business in Omaha, Neb., to support its low carbon fuel initiative at Diamond Green Diesel.

"We are pleased to have the opportunity to add the Kruger Commodities operations to Darling's global platform," said Randall C. Stuewe, Darling chairman and CEO. "This long established, family owned business is a natural fit to the Darling network and will help us to better serve our customers and growing feedstock demand from Diamond Green Diesel, our low carbon fuel facility located in Norco, La."

Darling is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, nutraceutical, food, pet food, feed, industrial, fuel, bioenergy and fertilizer industries.

With operations on five continents, the company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The company also recovers and converts recycled oils (used cooking oil and animal fats) into valuable feed and fuel ingredients, and collects and processes residual bakery products into feed ingredients.

In addition, the company provides environmental services, such as grease trap collection and disposal services to food service establishments and disposal services for waste solids from the wastewater treatment systems of industrial food processing plants. The company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients.



Fertilizers Continue Mostly Higher

According to retail fertilizer prices tracked by DTN for the second week of May 2018, prices continue to be mostly higher. There appeared to be signs over the last few months that prices may be turning lower, with multiple fertilizers having lower prices, but so far this trend has not developed.

Like last week, seven of the eight major fertilizer were higher in price compared to last month, although none were up a substantial amount. MAP had an average price of $505/ton, potash $354/ton, 10-34-0 $439/ton, anhydrous $510/ton, UAN28 $241/ton and UAN32 $276/ton.

The remaining fertilizer was slightly lower in price compared to the previous month. DAP had an average price of $483/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.31/lb.N, UAN28 $0.43/lb.N and UAN32 $0.43/lb.N.

Six of the eight major fertilizers are now higher compared to last year with prices pushing higher in recent months. Both 10-34-0 and anhydrous are now up 1%, potash is 4% higher, urea is 5% more expensive, MAP is 7% higher and DAP is 11% more expensive compared to last year.

The remaining two fertilizers are lower in price compared to a year prior. UAN32 is 2% lower while UAN28 is 3% less expensive, looking back a year.



Growth Energy Issues Statement on Marathon EPA Waiver Application

Today, Marathon Petroleum Corp, one of the largest refining companies in the United States, requested a "hardship waiver" from the Environmental Protection Agency (EPA) to exempt one of its facilities from its requirements under the Renewable Fuel Standard. In response to this request, Growth Energy CEO Emily Skor issued the following statement.

"Two of the largest corporations in the country are set to create an oil monopoly, and they are still expecting ‘small refiner’ handouts. This is what happens when EPA regulators are permitted to ignore the president’s commitments to rural communities. These waivers have already siphoned billions away from farm families to enrich some of the world’s largest oil companies as well as a few well-connected investors like Carl Icahn. Those gallons need to be restored and American consumers need immediate, year-round access to E15."

Statement from Chuck Grassley, Iowa Senator
“That an oil company making billions of dollars in profits even thinks it has a shot at receiving a ‘hardship’ waiver proves how broken this process is. The statutory volume obligation for conventional biofuels is 15 billion gallons annually. That’s what Congress intended. That’s the spirit of the law. That’s what President Trump promised. Any changes to the Renewable Fuel Standard have to fix this embarrassing loophole and guarantee 15 billion gallons of ethanol actually get blended.”

Statement from Brooke Coleman, Executive Director of the Advanced Biofuels Business Council
“This is the theatre of the absurd. Marathon wants a small refinery hardship waiver at the very moment it is seeking to become the nation’s largest refiner by acquiring Andeavor for $23 billion. The federal government should be protecting consumers by scrutinizing mergers like this instead of handing out dividends to multibillion dollar oil companies seeking to monopolize critical energy sectors. Marathon is giving it a shot because Scott Pruitt is doing everything he can to line refiners’ pockets even if it means making a mockery of the President’s commitments to rural America.”



Growth Energy Releases Statement on Upcoming RFS Meeting Between EPA, USDA

Growth Energy CEO Emily Skor released the following statement in advance of Thursday’s meeting between the Environmental Protection Agency and the United States Department of Agriculture to discuss the president’s plan to preserve U.S. biofuel production:

“We’re pleased the USDA is taking up the president’s call to action and pressing for an immediate E15 fix, before the start of the summer driving season. As Secretary Perdue has noted, a flood of illegitimate waivers from the EPA has resulted in 'demand destruction' for U.S. farmers at a time when rural communities can least afford it. Even petroleum giants like Marathon are now expecting ‘small refinery’ handouts.

“Regulators should, instead, focus on the president’s plan to reallocate lost biofuel gallons that were siphoned away by EPA waivers. President Trump promised to protect statutory targets under the RFS, and we support Secretary Perdue’s efforts to ensure the EPA upholds that commitment to rural families.

“There is no reason to delay action or attach unrelated gimmicks designed to benefit a few refinery owners. EPA Administrator Pruitt should stand by his word in 2017, when he vowed not to pursue an export scheme that would cannibalize demand for U.S. biofuels, destroy farm income, and spark retaliatory tariffs against the entire fuel and farm supply chain.