Wednesday May 30 Ag News

CropPro/GuideOne Crop Hail Named Peril Policy Cancellations

On May 10, 2018, the Nebraska Department of Insurance became aware of a pending cancellation of a large number of crop hail named peril (crop hail) policies issued to Nebraska growers by CropPro, a managing general agent of GuideOne Mutual Insurance Company. The reason given for the possible cancellation was the failure of CropPro to secure reinsurance. On May 11, CropPro began to issue notices of cancellation on many, but not all, crop hail policies issued in Nebraska. This cancellation notice did not apply to federally reinsured multi-peril crop insurance (MPCI) that was sold in conjunction with the private crop hail policies.

Since the issuance of the cancellation notices, the Department became aware of two pieces of misinformation provided to growers and insurance producers:
· First, emails from CropPro to insurance producers indicate that the Nebraska Department of Insurance required CropPro to cancel policies. This statement is false. The decision to cancel the policies was a decision made by CropPro.
· Second, emails from CropPro to insurance producers indicate grower losses will not be paid. This statement is false. GuideOne, as the insurer who issued the policy, will be responsible for any covered losses, subject to the provisions of the policy, that occur while the policy is in force. This includes policies that were not cancelled or replaced, as well as covered losses occurring while cancelled policies were still in force (between the policy’s effective date and the effective date of the cancellation).

RMA Bulletin
On Friday, May 28, 2018, the United States Department of Agriculture Risk Management Agency (RMA), issued a bulletin in response to the market disruption caused by CropPro’s decision to cancel a large number of crop hail policies in Nebraska. The bulletin allows growers to transfer their MPCI coverage back to the approved insurance provider who insured the MPCI policy in 2017. The window for transfers is 15 business days from May 28. The bulletin can be found on the RMA’s website at https://www.rma.usda.gov/bulletins/managers/2018/mgr-18-005.pdf.

Talk with your Insurance Agent
Each individual grower is unique and this situation involving misinformation, cancellations, and transfers is unusual and confusing. Nebraska growers affected by CropPro are encouraged to reach out and contact their insurance producers (agents) to determine their insurance needs and options for the 2018 growing season.



USE GRAZING TO CONTROL PASTURE WEEDS
Bruce Anderson, NE Extension Forage Specialist

               Pasture weeds are a problem for many of us.  It’s a challenge to control or prevent them in the first place.  The right grazing practices, though, can help reduce this problem.

               If you have weedy pastures, first ask yourself – Why?   Nearly always the existing forage stand was not thick or vigorous enough to out-compete invading weeds.  So the first step in pasture weed control must be to manage pastures so they can be competitive.  That may include fertilizer, extra seeding, and especially well-managed grazing.

               Once weeds become a problem, though, control strategies must be used.  One technique is to heavily stock a pasture, maybe with a ten-fold higher concentration of animals per acre than usual, for a very short time.  Only do this if your good grass is healthy.

               Use temporary cross fences to create small enough areas to achieve these high animal concentrations.  If this is done while weeds like crabgrass, foxtail, lambsquarter, and field bindweed are still young, many of them will be eaten readily.  Animals even eat cheatgrass, downy brome, and sandbur when plants are young.  Once they form seed stalks, though, cattle almost totally reject them.  Be sure to remove animals while desired grasses still have a few leaves remaining so they regrow quickly and compete with any recovering or new weeds.

               Some established weeds, especially perennials, aren’t controlled easily with grazing.  Clipping or spraying these weeds when their root reserves are low and to prevent seed production will reduce their pressure.  But remember, they will return quickly unless follow-up grazing management keeps your pasture healthy, vigorous, and competitive.

               Pasture weeds are troublesome, but proper grazing helps control them.



University, SNR to Host Soil Moisture Workshop

The leading scientists in soil moisture sensing, monitoring and modelling from the top universities, federal agencies and national laboratories in the United States will meet June 4 to 7 at the University of Nebraska-Lincoln for the eighth annual MOISST Workshop: From Soil Moisture Observations to Actionable Decisions.

The workshop provides a unique opportunity for the researchers to exchange ideas and develop collaborations, said Trenton Franz, one of the workshop organizers and a hydrogeophysicist at the School of Natural Resources.

"The exchange of water between the land surface and the atmosphere is critical for understanding the water and energy cycles," Franz said. "The feedback between land surface and atmosphere is critical to issues such as drought monitoring and short-term weather forecasting."

A nationwide interest in better understanding these relationships has experts pushing to establish a national soil moisture monitoring network, and one goal of the workshop is to stimulate progress toward realizing the vision of the National Soil Moisture Network, which aims to integrate diverse sources of soil moisture observations, including federal and state in-situ monitoring networks, satellite remote-sensing missions, and numerical models.

The workshop, hosted by Nebraska at the School of Natural Resources, will also: * Provide a highly focused venue for presenting cutting-edge research and new concepts related to soil moisture monitoring. * Highlight new applications of soil moisture data and identify application-oriented research needs.

The workshop will include special sessions by the National Drought Mitigation Center. Invited speakers are from the National Aeronautics and Space Administration, the National Oceanic and Atmospheric Administration, the U.S. Department of Agriculture and various universities and laboratories around the country.



Climate Assessment Response Committee to Meet

Mat Habrock, assistant director of the Nebraska Department of Agriculture, has scheduled a meeting of the Climate Assessment Response Committee (CARC) for June 4. The meeting will begin at 9:30 a.m. in room 901, Hardin Hall on the University of Nebraska-Lincoln East Campus.

Officials will brief CARC members on existing, as well as predicted, weather conditions and provide a water availability outlook.

For more details, call the Nebraska Department of Agriculture at (402) 471-2341.



Fuel Your Summer Road trip with Iowa’s Homegrown Fuel

Planning a summer vacation or a weekend getaway? You probably don’t put much thought into which gas station you stop at, but by making pit stops at stations with higher blends of homegrown ethanol including E85, could save you money. Determine the best fuel for your vehicle by using our  Vehicle Fuel  Finder  to find out! 

E85 is a fuel made up of 85 percent ethanol and 15 percent gasoline.  E85 can be used to fill up your “flexible fuel” vehicles.  As the summer driving season begins, the U.S. Energy Information Administration is already warning drivers that they likely see the highest gasoline prices in four years. Pump prices have already begun to increase, so make the right choice for your vehicle to save money for what matters most.

As of Tuesday, May 22 the current price for unleaded gasoline averaged $2.84 across Iowa according to AAA. This is up $.05 from last week and $.58 higher than one year ago. The national average on the same day was $2.95, up $.06 from last week’s price. However, ethanol is helping to offset higher prices, and 10 percent ethanol blends (E10) alone could save consumers at least $39 billion this year, according to an analysis  released by the Renewable Fuels Association. The current Des Moines Terminal/Rack Prices are $2.16 for E10 and E85 is priced at $1.76 per gallon.



Crop Rotation Changes May Impact Manure Management Plans

As June approaches, some northern areas of the state have experienced delays in corn planting due to a cold spring that turned wet. Producers considering changes to crop rotation should pay attention to the impact it has on manure management plans.

The Iowa Administrative Code only allows a maximum of 100 pounds N per acre manure application on ground to be planted to soybean. However, it does allow fields that had liquid manure applied at rates intended for growing corn to be switched to soybean on or after June 1 with no penalty of over-application of manure nitrogen. Thus if a field planned for corn has not been planted and will be switched to soybean, this can be done. Producers should document the changes in crop rotation, application methods and other changes in their annual manure management plans.

Given it has been a wet spring in some areas, nutrient management and specifically, nitrogen loss may be top of mind. Livestock producers with Iowa DNR manure management plans are reminded if they have already applied the maximum nitrogen rate to the field, they can't apply additional sources of nitrogen unless the need is confirmed by the use of a Late Spring Nitrate Test. This test measures nitrate-N concentration at the 0-12 inch depth.

Results can be interpreted by the ISU Extension and Outreach publication "Use of the Late-Spring Soil Nitrate Test in Iowa Corn Production" (CROP 3140), which considers both the original fertilizer source and the amount of rain that occurred in May (excessive is more than five inches in May). When adding extra nitrogen, be sure to document soil sample results and reference the publication to interpret the test results in management plans.

While fall provided favorable application conditions, and periods in March were favorable, producers should plan ahead if not as much manure as normal is applied in the spring. Having a plan in place will help prevent potential issues from turning into problems. Keep an eye on storage, and have a plan for needed action.



Iowa Farm Bureau appoints Marty Schwager as Field Service Director

Marty Schwager has been named Iowa Farm Bureau Federation’s (IFBF) Director of Field Service, succeeding longtime IFBF employee Joe Johnson in the role. Johnson, who was recently named IFBF Executive Director, says Schwager’s reputation for building successful coalitions with business and industry groups, legislators and farmers will help meet Farm Bureau’s goals as the 100-year-strong farm organization moves forward.

“Marty is widely recognized within the organization and across the industry for his forward-thinking passion for ag, diplomacy and ability to reach common ground to achieve goals.  For all those reasons and more, he is perfectly suited to work with our staff and farm leaders as we come together to find solutions for the next century of issues for agriculture,” says Johnson.

Prior to being named Director of Field Service, Schwager served in several roles at IFBF, including State Lobbyist, National Lobbyist and Regional Manager. Schwager’s long service to agriculture also includes working as Director of Producer Education for the Iowa Pork Producers Association (IPPA), overseeing the Pork Quality Assurance program and Swine Welfare Assurance program, along with other producer and consumer educational efforts.  In addition to his agriculture expertise, the Clive resident served as president of the Clive Chamber of Commerce and as a volunteer for the Big Brothers/Big Sisters program.

“I’m honored to take on this new role within Farm Bureau.  I am motivated by our members and staff and look forward to seeing what we can accomplish for Farm Bureau and Iowa agriculture moving forward,” says Schwager.

Schwager earned his Agricultural Business bachelor of science degree and his Master of Agriculture degree from Iowa State University.



Iowa Farm Bureau appoints Kevin Kuhle as State Policy Advisor

Kevin Kuhle has been appointed to State Policy Advisor for Iowa Farm Bureau Federation’s (IFBF) Government Relations team, effective June 1, 2018.  Kuhle replaces Marty Schwager, who was recently named IFBF Field Service Director.

Kuhle has served as IFBF’s National Policy Advisor for the past five years. Prior to joining IFBF, his political experience included working for Representative Lee Hein in the State Capitol, and developing extensive election and policy experience with numerous National, State, or Congressional level political campaigns.

IFBF’s Director of Government Relations, Don Petersen, says Kuhle’s experiences, as well as his passion for agriculture and collaborative skills will help sustain Farm Bureau’s reputation as Iowa’s oldest and strongest grassroots farm organization.

“Kevin’s political savvy will assure a seamless transition in representation for our organization and the thousands of Iowans who come together each year to form our policies.  Kevin never loses sight of the people he works for---the farmers who have made Farm Bureau the 100-year strong organization that serves agriculture and rural Iowans now, and into the future,” says Petersen.  

Kuhle received his bachelor’s degree from Drake University in politics and public relations and resides in Des Moines with his wife and son.

“I look forward to working with my talented colleagues and farm leaders at the Statehouse, who work so hard to represent Iowa agriculture.  I am eager to begin this new challenge,” says Kuhle.



An 8-Billion-Pound Market for Beef

From restaurants and resorts to cafeterias and mess halls, the foodservice industry represents the majority of away-from-home food purchases - and an 8-billion-pound market for beef.

The newly released, checkoff-funded "2017 Foodservice Volumetric Study" shows foodservice demand grew for the second year straight. According to the research, foodservice demand for U.S. beef is making a comeback after four years of decline.

Now in its 15th year, the annual study measures beef and chicken use in the foodservice industry. In 2017, the study:
-    Measured beef use by segments and cuts
-    Assessed chicken volume and penetration
-    Analyzed category usage trends and menu positioning

According to the study, 97 percent of foodservice operators serve beef. Beef saw the highest gain in volume of all proteins, up 221 million pounds, or 2.8 percent. Key findings include:
-    Beef accounts for 16 percent of total food purchases made by operators
-    Ground beef represents the largest share in pounds and dollars and grew the most in both pounds and dollars in 2017
-    Demand for pre-cut steaks declined as more operators are purchasing roasts (subprimal and ribs) to cut into steaks
-    Barbecue trends led to 8 percent growth in beef rib volume

Since 2003, the National Cattlemen's Beef Association, working on behalf of the beef checkoff, has engaged Technomic to perform the annual study to assess trends and inform marketing strategies. A total of 964 operators participated in the 2017 research study.

The increase in beef popularity in the foodservice industry should continue into 2018 as indicated by the USDA's beef supply forecast. The forecast states that consumers are projected to eat 9.6 percent more beef in 2018 than in 2015.



Pork Checkoff Showcases U.S. Pork at Launch of World Meat Congress

Leaders from around the globe are gathering in Dallas this week for the 2018 World Meat Congress (WMC). Key international stakeholders and National Pork Board leadership and staff will engage in real-time discussions of issues affecting the international marketplace for pork and other commodities. The WMC is a biennial event – held in the U.S. for the first time in over two decades – that brings together 700 of the world’s meat industry thought leaders.

The National Pork Board is one of the title sponsors of the event and will leverage that sponsorship to showcase U.S. pork in a variety of ways, including at the opening reception and a pork-themed luncheon. Also, board members and producer members of the Checkoff’s International Marketing Committee will network with key international stakeholders to share details about sustainability on today’s pig farms and to discuss emerging issues facing the industry.

“We’re excited to be here in Dallas talking about U.S. pork not as a commodity, but as a unique and special product with a story,” said Terry O’Neel, National Pork Board president and a producer from Friend, Nebraska. “As an industry, we have harnessed our collective strength to elevate our position in international markets, which has led to a record-setting global demand for U.S. pork.”

The pork industry is not unique in its growing dependence on exports to deliver returns to pork producers. In the last 10 years, U.S. agriculture has grown rapidly, shifting from exporting relatively few products to becoming heavily reliant on consumers outside of the U.S. and their intention to demand and buy American-grown products.

“It is critical that the U.S. pork industry diversify its global market opportunities,” said Craig Morris, vice president of international marketing at the National Pork Board. “No longer can we just be concerned with commodity volume. We proved this in 2017 when the top markets for U.S. pork included Mexico, Japan and China/Hong Kong. And although exports were down overall to China last year, U.S. pork variety meat exports set an all-time export record surpassing $1 billion in total value.”

At the World Meat Congress, U.S. pork industry leaders and pig farmers will have the opportunity to personally connect with world leaders, gaining invaluable insights that will continue the record-breaking pork export trajectory. Through speakers and networking opportunities, attendees will build relationships to elevate the Pork Checkoff’s international marketing efforts. The important contacts and conversations will aid in developing international marketing strategies designed to grow U.S. pork demand abroad.

As part of its sponsorship, the Pork Checkoff is sponsoring the keynote address by award-winning author and Forbes contributor Jeff Fromm, an expert on emerging consumer trends. Fromm, who has authored several books on reaching young consumers, says that food has moved from a mere menu item to a form of self-expression.

“Today’s young consumers are passionate about food; it is a ‘badge’ product,” Fromm said. “We used to express ourselves through clothing, but now it is food culture driven by the young consumer who can often afford to buy anything they wish.”

With both millennial and Generation-Z consumers (born 1996 to 2010) using food to curate their identity, the rules of food production and promotion are changing, with a focus moving from transparency to proof of performance.

“As an industry, food marketers must shift from ‘story telling’ about a product into ‘story living,’ or showing how the young consumer can integrate a product into their life,” Fromm added. “For example, today’s Gen Z consumer literally has an empty spice cabinet and they look to food merchandisers to fill that gap through innovative, seasoned product offerings. This delivers to the young consumer something they need and do not already have.”

The World Meat Congress continues through June 1, allowing time for producer leaders in attendance to exchange ideas and share strategies to face challenges and overcome barriers to international marketing. Insights, such as those shared by Fromm and other speakers, will generate conversations that will lead to critical relationship building. The conference provides a historic opportunity to gather critical insights and showcase the superiority of U.S. pork production to key international customers.

“The Checkoff will work hard to ensure that U.S. pork is literally at the center of the plate and top of mind for each conference attendee,” O’Neel said. “The insights we gain here will help us to better target future international markets and better understand the global consumers’ unique preference with the goal to increase U.S. pork consumption around the world.”



2018 World Pork Expo Showcases Everything Pig

A record-setting trade show, expanded seminar lineup, elite swine shows, and an abundance of delicious pork are all part of the 2018 World Pork Expo, June 6-8, at the Iowa State Fairgrounds in Des Moines. Presented by the National Pork Producers Council (NPPC) since 1987, Expo has become the must-see event for anyone involved in the U.S. or global pork business.

“As we mark 30 years of Expo, it’s exciting to see how the event has evolved and grown,” says Jim Heimerl, NPPC president and producer from Johnstown, Ohio. “It not only reflects the vibrancy of the U.S. pork industry, but also the connectedness of the global marketplace. For anyone involved in pork production, Expo is a wonderful opportunity to discover new technologies, exchange ideas and plan for the future.”

Organizers expect approximately 20,000 producers, employees, industry specialists and other pork professionals, including 1,000 international visitors, to participate in Expo’s three days.
More products, more companies, more exhibits

From the beginning, Expo has featured the world’s largest pork-specific trade show, but this year, it’s even bigger. New to Expo, the Jacobson Exhibition Center (JEC) will join the Varied Industries building to display products, services and technologies from more than 500 U.S. and international companies.

“This will be our biggest trade show ever,” says Doug Fricke, Expo director of trade show marketing for NPPC. “Adding JEC and the expanded space also allows for bigger and more elaborate displays; companies are really rolling out the red carpet. All aspects of pork production, from the ground up, will be represented within the trade show.”

Visitors also will find more outdoor exhibits throughout the fairgrounds. On display around the swine, sheep and cattle barns will be products and services associated with live-hog shows. In all, Fricke estimates Expo’s trade show will exceed 360,000 square feet, making it more than 40,000 square feet larger than in 2017.

This year’s expansion extends to the hospitality tents, which will increase from 52 to 60, giving allied industry and producers more opportunities for one-on-one interaction.

Trade show doors will be open from 8 a.m. to 5 p.m. on Wednesday, June 6, and Thursday, June 7, and from 8 a.m. to 1 p.m. on Friday, June 8.

Live-hog shows and youth educational events
The World Pork Expo Junior National is another event that continues to grow and draw participants from across the nation. This premier youth live-hog exhibition begins on Monday, June 4. In addition to show ring competition, the event includes judging contests, certification programs, Skillathon and other educational activities.

Hosted by the National Junior Swine Association and Team Purebred, this year’s Junior National has set another record with 1,450 youth from 34 states entered to participate. That compares to 1,050 exhibitors from 32 states in 2017. The final hog numbers won’t be determined until the actual event but are expected to exceed the 2,500 pigs exhibited last year.

Also taking place in the swine barn on Friday, June 8, is the open show, presented by the National Swine Registry, Certified Pedigree Swine and American Berkshire Association. Divisions include Berkshire, Chester White, Duroc, Hampshire, Landrace, Poland China, Spotted, Yorkshire and crossbred breeding swine, with a sale on Saturday morning, June 9.

Free seminars and entertainment
Educational opportunities have long been a centerpiece of Expo. This year, a record 20 seminars are on the schedule for Wednesday, June 6, and Thursday, June 7. Throughout both days, experts will present the latest innovations and insights into pork production and management at the PORK Academy and Business Seminars. Pork producers, their employees and other pork professionals will have access to experts on a wide range of topics, including sow productivity, water quality and manure management, antibiotic use and resistance, optimizing piglet growth, export and domestic pork marketing strategies, and much more.

MusicFest lights up the stage on Thursday, June 7, from 4:30 to 8:00 p.m. Presented by NPPC, Expo visitors can enjoy a summer evening with the free concert and lots of grilled pork. First up will be the R&B and classic country sounds of Josh Hoyer, a Nebraska native and contestant on season 12 of The Voice. Headlining the evening is The Big Noise, led by Cactus Moser, a musically adventurous group that has recorded and toured with Wynonna Judd over the past five years.

The Big Grill, another long-time Expo staple, will serve free pork lunches from 11:00 a.m. to 1:00 p.m. all three days of the show. Manned by Iowa pork producers and industry personnel, the Big Grill dishes up an estimated 10,000 pork lunches each year.

Don't miss out
The final countdown to the 2018 World Pork Expo is underway, but there’s still time to make plans to attend.

“If you haven’t been to Expo in a while, this is the year to make a return trip. You’ll be amazed to see how much it’s changed,” says Heimerl. “Expo is a great place to discover what’s new, as well as learn and compare what you will need for your business in the years to come.”

Online registration is available until 5 p.m. CST on May 31. The pre-Expo registration fee is $10 for adults and children 12 years and older, $1 for children ages 6 to 11, and no charge for children 5 years and younger. Onsite registration takes place at Gate 15, with an entrance fee of $20 per adult and $3 for children ages 6 to 11 years. In all cases, the price includes entry for all three days of Expo. A special rate of $10 is available for adults arriving on Friday.

For all the latest updates and details to plan your visit, including room availability at official World Pork Expo hotels, maps and exhibitors, go to Expo’s website. Also connect with Expo by following us on Twitter and Facebook and tagging your posts with the hashtag #WPX18.

Be sure to download the World Pork Expo app, available on Google Play and the Apple store. It will help you navigate the fairgrounds, identify exhibitors that you want to visit and keep you on schedule.

The 30th World Pork Expo has something for everyone, so don’t miss out on everything pig, June 6-8 at the Iowa State Fairgrounds in Des Moines.



Half of Fertilizers Continue Higher

Prices for half of the eight major fertilizers continue to be mostly higher, according to prices tracked by DTN for the third week of May 2018. Like off and on in recent weeks, there are some possible signs that fertilizer prices may be weakening.

Four of the eight major fertilizer were once again higher in price compared to last month, although none were up a considerable amount. MAP had an average price of $504/ton, potash $354/ton, 10-34-0 $439/ton and UAN28 $241/ton.

The other four fertilizers were slightly lower in price compared to the previous month. DAP had an average price of $483/ton, urea $364/ton, anhydrous $504/ton and UAN32 $276/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 6% 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 1% lower, while UAN28 is 3% less expensive.



Ethanol Coalition Files Suit Against EPA’s Secretive Small Refinery Exemptions

The Renewable Fuels Association (RFA), National Corn Growers Association (NCGA), American Coalition for Ethanol (ACE) and National Farmers Union (NFU), with support of Farmers Union Enterprises, today filed suit in the U.S. Court of Appeals for the 10th Circuit to challenge several waivers from the Renewable Fuel Standard (RFS) that the U.S. Environmental Protection Agency (EPA) granted in secret to profitable refining companies.

The petitioners are challenging three EPA decisions, made under unusually clandestine proceedings, to exempt refineries in Wynnewood, Oklahoma; Cheyenne, Wyoming; and Woods Cross, Utah from the RFS requirements of the Clean Air Act. The Wynnewood refinery is owned by Wynnewood Refining Company, a subsidiary of CVR Energy, and the Cheyenne and Woods Cross refineries are owned by Holly Frontier Corporation. The companies have since estimated in financial disclosures that the exemptions have saved them a collective $170 million in compliance costs.

When Congress enacted the RFS program a decade ago, it sought to protect certain small refineries from the law’s impacts temporarily by providing an exemption for refineries with no more than 75,000 barrels per day (bpd) of crude oil throughput. After a two-year blanket exemption expired, Congress also allowed those same refineries to ask for extensions of the temporary exemption if they could show that compliance with the RFS program was causing that particular facility a “disproportionate economic hardship.” Until late last year, EPA only granted a handful of exemptions per year. EPA denied many extension requests, presumably because the refineries failed to meet one or more of these requirements for an extension. In recent months, EPA has granted over two dozen exemptions—including the ones challenged here—without providing any basis for its reversal.

“EPA is trying to undermine the RFS program under the cover of night,” said Bob Dinneen, CEO and President of RFA. “And there’s a reason it has been done in secret – it’s because EPA is acting in contravention of the statute and its own regulations, methodically destroying the demand for renewable fuels,” continued Dinneen. “With the little information we’ve been able to piece together through secondary sources, it’s clear that EPA has been extending these exemptions to refineries that didn’t qualify for them.”

Although EPA typically publishes its proposed actions and final decisions in the Federal Register, EPA has not followed those protocols for small refineries; nor has EPA even informed the public by any means that it had received or acted on such carve-out requests. Instead, the petitioners learned of the unprecedented number of exemptions second-hand, through media reports and secondary sources. 

“EPA left us with no choice but to challenge their systematic cuts to ethanol blending in the U.S. by distorting the intent of the law to grant secret hardship waivers to refineries which in some cases exceed the definition of ‘small’ and fall short of demonstrating ‘disproportionate economic hardship,’” said Brian Jennings, CEO of ACE. “We cannot sit by and allow EPA to violate the RFS which requires increasing the use of renewable fuels in the U.S.”

The petition also notes that EPA has consistently rejected all attempts to bring greater transparency to the small refinery exemption extension process. EPA has refused to provide even the most basic information requested in Freedom of Information Act (FOIA) requests from RFA and other parties. More surprisingly, the Agency has also ignored demands from members of Congress for the same essential facts.

“EPA’s improper handling of the RFS has significantly cut demand for biofuels grown and produced by American family farmers and their communities. The success of the law lies in the requirement that certain amounts of renewable fuel be blended into our transportation sector. Yet EPA has unlawfully allowed massive refineries to skirt compliance with these requirements, effectively reducing the amount of renewable fuels blended into the transportation sector by more than one billion gallons. These actions must be reversed immediately,” according to Roger Johnson, President NFU.

The petitioners are not challenging EPA’s underlying authority to exempt certain small refineries; rather they are challenging three granted exemptions as abuses of EPA’s authority. EPA should be forced to explain why an otherwise profitable refinery faces disproportionate hardship from compliance with the RFS. We want EPA to explain why it is reasonable for HollyFrontier, which apparently could not afford to comply with the RFS, could nonetheless afford to undertake a $1 billion stock share repurchase program during the same time—and that’s before the company received over $300 million in tax cuts last year. Likewise, the petitioners would like to understand how EPA could find hardship at CVR Energy, which reported a $23 million profit in the biofuels credit market in the first quarter of 2018 due to what it called a lower RFS obligation.

“With their rapidly rising profits, it’s difficult to see what economic hardship these refineries are facing. The apparent lack of hardship raises serious questions of why EPA granted these exemptions, which is compounded by the fact that there is zero transparency in EPA’s small refinery exemption process,” said Kevin Skunes, president of the National Corn Growers Association. “America’s corn farmers, who are expecting their fifth consecutive year of low commodity prices and who are experiencing the lowest net farm incomes since 2006, understand economic challenges. When refineries are reporting profit increases and repurchasing stock shares, we expect EPA to explain why these refineries were granted exemptions from their RFS volume obligations.”

In practice, EPA is attempting to use the small refinery exemptions to waive a significant part of the annual volumes of renewable fuel that are otherwise required to be blended into transportation fuel. Based on EPA data, RFA estimates that small refinery exemptions granted for the past two years have effectively reduced volumes of renewable fuel by as much as 1.6 billion gallons. In enacting the RFS program, however, Congress did not envision the small refinery exemption process would be abused in such a way.



New Study Shows Chinese Regulatory Delays Costing Rural Jobs & Economy

America’s farmers’ access to biotechnology seeds has been impeded by regulatory delays in China, costing the overall U.S. economy both jobs and billions of dollars in economic output, according to a study released today by Informa’s Agribusiness Consulting Group in tandem with the Biotechnology Innovation Organization.

“This report further confirms something that we have already known: China’s biotech approval process has functioned in an unpredictable manner that compounds delays and has global ramifications,” said Don Duvall, a farmer from Illinois and Chair of the National Corn Growers Association’s Freedom to Operate Action Team . “For American agriculture to achieve its full potential, farmers need access to both the most cutting-edge technologies as well as to international markets.”

More timely biotech import approvals would benefit China, as well as ag exporters such as the United States, Argentina and Brazil, by increasing food security and decreasing food prices for Chinese consumers while boosting farmer incomes and allowing for the use of more sustainable farming practices.

According to the report, limiting farmers’ access to technology and forgoing productivity gains has had profound effects in the U.S. over the last five years. Namely, these delays have:
·      Limited farm incomes by $5.3 billion
·      Prevented the creation and support of over 34,000 jobs
·      Prevented wage growth of nearly $4.6 billion
·      Reduced potential economic output by nearly $7 billion
·      Reduced potential business sales by nearly $15 billion

Looking ahead, should China adopt regulatory practices that allow for more timely commercial introductions of products, the U.S. could see the following economic benefits unlocked:
·      Increase in farm income by over $5 billion
·      Over 19,000 jobs would be created and supported
·      Increase in wages by nearly $4.4 billion
·      Increase of potential GDP by over $7.3 billion
·      Increase of business sales by nearly $15 billion

The NCGA is continuing efforts to work with the U.S. government in urging China to adopt a science-based regulatory system that ensures both proper oversight of new technologies as well as an efficient and effective review process.



ASA Underscores Importance of U.S. Trade with China

The American Soybean Association (ASA) reiterated its significant concern with the Administration’s decision yesterday to move forward and apply a 25 percent tariff on nearly $50 billion in goods imported from China.

The looming threat of tariffs creates uncertainty in the marketplace and for soy growers, whose livelihoods rely on the ability to export their crops and products to China.

“This is real money to a soybean farmer trying to determine when to sell their crop,” said ASA President and Iowa farmer John Heisdorffer. “Farm income is projected to be the lowest in more than five years and farmers cannot afford to have the bottom fall out now.”

ASA continues to ask the Administration to work with soybean farmers to find ways to reduce our trade deficit by increasing competitiveness rather than erecting barriers to foreign markets, and is confident in this week’s negotiations.

“We are very pleased to have USDA send some of their best negotiators in agriculture to this week’s meeting with officials in China,” Heisdorffer added. “Soybeans lead the way for agricultural trade with China, accounting for nearly $14 billion in exports to China annually. As we have called for months, we believe soybeans can be part of the solution and we’re hopeful to be a part of the conversation this week.”



NGFA recommends changes to FDA's draft guidance on FSMA importing rules

The National Grain and Feed Association (NGFA) has submitted a statement to the U.S. Food and Drug Administration (FDA) recommending that the agency make several changes to its draft guidance to better inform importers on how they may comply with the import rules established under the Food Safety Modernization Act (FSMA).

The statement covers FDA's draft guidance for industry entitled, "Foreign Supplier Verification Programs for Importers of Food for Humans and Animals." The guidance, when finalized, is intended to provide the agency's thinking on how importers of human or animal food can comply with the regulation on foreign supplier verification programs (FSVP).

NGFA's statement also included recommendations on certain FSVP issues that, if implemented, would result in meaningful reduction in regulatory burdens and costs on the regulated industry, while still enabling FDA to fulfill its public health mission and statutory obligations under FSMA.

Among the recommendations made by the NGFA were that FDA should:
-    Provide a more proactive system to inform entities when they have been named as the importer for purposes of the rule to avoid inaccurate or false designations that would create potential compliance obligations.

-    Designate pulse raw agricultural commodities (e.g., dry peas, lentils, chickpeas, and dry beans) as "grain," so that the agency's previously announced enforcement discretion for certain importers of grain raw agricultural commodities intended for further processing would be appropriately extended to such commodities.

-    Clarify that the agency intends to exercise enforcement discretion for animal food contact surfaces with regard to FSVP requirements.

-    Limit the scope of potential economically motivated adulteration hazards that importers need to consider to those for which there has been a pattern of economic adulteration in the past.

-    Update its website to provide clearer and more concise information pertaining to countries the agency recognizes as having a food safety system that is comparable or equivalent to that of the United States.



USDA Providing $8.89 Million for Risk Management Education

The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) today announced the availability of $8.89 million for risk management education and training programs. The funding will allow organizations such as universities, county cooperative extension offices, and nonprofit organizations to develop training and educational tools to help farmers and ranchers learn how to effectively manage long-term risks and challenges.

Interested organizations may apply by submitting documentation required as part of the Risk Management Education Partnerships Request for Applications (RFA). The applications are then reviewed, and awardees enter into cooperative agreements that are managed by RMA’s Risk Management Education Division.

“Risk Management Education helps ensure that farmers and ranchers know and understand what tools are available to them and how to plan for unknown weather and financial situations. We work with private organizations to help us reach a wide range of producers, and connect them with resources from RMA, as well as from our partner agencies within USDA’s Farm Production and Conservation mission area, the Farm Service Agency and Natural Resources Conservation Service,” said RMA Administrator Martin Barbre.

Agriculture is an inherently risky business. The farm safety net provides producers and owners various methods to mitigate production and revenue risks and helps to maintain a healthy rural economy.

Available funding includes $4.73 million for the Crop Insurance Education in Targeted States Program for crop insurance education programs where there is a low level of Federal crop insurance participation and availability. The targeted states are Alaska, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.

Additionally, $4.16 million in funding is available for the Risk Management Education Partnership Program, which provides funding for the development of general nationwide crop insurance education as well as other risk management training programs for producers.

A broad range of risk management training activities are eligible for funding consideration under these programs, including training on Federal crop insurance options, risk analysis, and changes to the crop insurance program. Partners also can train farmers at all levels on risk management options that help secure local food systems and strengthen rural communities.

Information about how to apply to these programs is available at Grants.gov (www.grants.gov). For information about the Risk Management Partnership program, search by catalog of federal domestic assistance (CFDA) for 10.460 and information on the Crop Insurance Education in Targeted States can be found by searching for 10.458.

Applications for both programs are due by 5:00 p.m. EDT on July 30, 2018. All applications must be submitted electronically through the Results Verification System website (rvs.umn.edu) and received by the deadline.

For the 2017 crop year the Federal crop insurance program insured 311.4 million acres, with 1.12 million policies and $106 billion worth of coverage as of May 4, 2018.

RMA works with private partners to assist producers, especially limited resource, socially disadvantaged and other traditionally underserved farmers and ranchers, in effectively managing long-term risks and challenges. For more information about RMA, its programs, or to volunteer to serve as a reviewer, visit www.rma.usda.gov.



NFU Condemns DOJ Approval of Monsanto Acquisition by Bayer

The U.S. Department of Justice (DOJ) today approved German drug and chemical giant Bayer’s $62.5 billion acquisition of Monsanto. The deal will consolidate control of more than a quarter of the world’s seed and pesticides market and create the largest seed and crop chemicals company in the world.

National Farmers Union (NFU) President Roger Johnson issued the following statement in response to the announcement:

“Bayer’s acquisition of Monsanto culminates the latest and most disturbing round of consolidation amongst the handful of companies that control both U.S. and global agricultural markets. Three massive companies now control the markets that supply agricultural inputs like seeds, traits and chemicals. This extreme consolidation drives up costs for farmers and it limits their choice of products in the marketplace. It also reduces the incentive for the remaining agricultural input giants to compete and innovate through research and development.

“While we appreciate the significant divestitures agreed to as part of this approval, Farmers Union condemns DOJ’s continued rubber-stamping of mergers in the food and agriculture arena. We will now focus our efforts on ensuring the promises made by Bayer and Monsanto throughout this approval process are kept. The company must continue to increase the productivity of American family farmers by delivering localized solutions in seed, trait, and crop chemical innovation.”