Friday June 1 Ag News

Nebraska Farm Bureau to Hold Agriculture Issue Listening Sessions

The Nebraska Farm Bureau will hold a series of listening sessions across the state in June. The sessions are open to the public and will provide farmers and ranchers with the opportunity to share their thoughts on issues impacting their operations.

“Nebraska Farm Bureau was founded by farmers and ranchers who understood the importance of working together to solve problems that were impacting their livelihoods and their communities. These listening sessions will give farmers and ranchers the chance to talk about issues of concern directly with Nebraska Farm Bureau leadership and staff so we can continue to work together to address issues,” said Steve Nelson, Nebraska Farm Bureau president.

Listening sessions are scheduled for:

Mon., June 25 – Ainsworth
City of Ainsworth Conference Center
606 East 4th Street
Ainsworth, NE 69210

Tues., June 26 – Gering
Legacy of the Plains Museum
2930 Old Oregon Trail
Gering, NE 69341

Wed., June 27 – Hastings
Adams County Fair Grounds
Community Service Building
947 South Baltimore Ave.
Hastings, NE 68901

Thu., June 28 – West Point
Nielsen Community Center
200 Anna Stalp Ave.
West Point, NE 68788

All listening sessions will begin with a social at 6 p.m. local time, to be followed by a meal and program at 6:45 p.m. Those interested can RSVP by texting NEFB to 52886. RSVPs are appreciated, but walk-ins are welcome.



Iowa Corn Reaches Iowans with “Farmers Care About the Water We Share” Message

Iowa corn farmers know the importance of our state’s water, it’s one of our shared resources vital to growing their crops. That’s why Iowa Corn farmer-leaders want all Iowans to know what farmers are doing to be sure the water our families drink is as pure as it can be. What better way to reach Iowans with this message than engaging people at some of Iowa’s most popular summertime attractions. Iowa Corn launched the “Farmers Care About the Water We Share” effort at this past Tuesday’s Iowa Cubs baseball game where farmers and their families greeted fans with free water bottles, having conversations and directing them to the new iowacorn.org/H20 website.

“It was great to be able to visit with people about why I care about water quality and leaving the farm in better shape for my kids,” said Michael Fritch, a farmer from Mitchellville, Iowa. “We need to continue to all work together to protect our state’s water.”

Look for farmers at future events around the metro including:
-        Big Creek Lake on Saturday, June 2
-        Iowa Speedway in Newton for the Iowa Corn 300 on July 8
-        Iowa State Fair including Iowa Corn day on August 17
-        Iowa Corn Cy-Hawk Series on September 8th with kickoff at 4:00 P.M. in Kinnick Stadium

The new webpage includes a video from Iowa Nice Guy talking about how Iowans can help protect Iowa’s water quality, why farmers care about the water we share, and tips on what we all can do to improve our state’s water. Want to know more, go to  iowacorn.org/H20.



USDA Reopens Application Period for Producers Recovering from Cattle Loss, Other Disasters

The U.S. Department of Agriculture (USDA) will begin accepting disaster assistance program applications on June 4 from agricultural producers who suffered livestock, honeybees, farm-raised fish and other losses due to natural disasters.

USDA’s Farm Service Agency (FSA) is reopening the application period for two disaster assistance programs in response to statutory changes made by Congress earlier this year.

“When disasters hit, help is as close as your USDA service center,” said Bill Northey, Under Secretary for Farm Production and Conservation. “After any catastrophic event, an eligible producer can walk into any one of our local offices and apply for help.”

Beginning June 4, FSA will accept new applications for losses for calendar year 2017 or 2018 filed under the Livestock Indemnity Program (LIP) or Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program (ELAP). Producers who already submitted applications and received decisions on their applications for these years do not need to file again, but they can reapply if they have additional losses or their application was disapproved because it was filed late.

In February, Congress passed the Bipartisan Budget Act of 2018, which made several changes to these two disaster programs, including:
-    Removing ELAP’s $20 million fiscal year funding cap, enabling FSA to pay producers’ 2017 applications in full and their 2018 applications as soon as they are approved.
-    Removing the per-person and legal entity annual program payment limitation of $125,000 for LIP for 2017 and future years. (The income limitation applies as it did before, meaning producers with an adjusted gross income of more than $900,000 are not eligible.)
-    Changing LIP to allow producers to receive a payment for injured livestock that are sold for a reduced price due to an eligible event. Previously, the program only covered financial loss for livestock death above normal mortality.

Producers interested in LIP or ELAP should contact their local USDA service center. To apply, producers will need to provide verifiable and reliable production records and other information about their operation.

Drought, wildfires and other disasters continue to impact farmers and ranchers, and LIP and ELAP are two of many programs available through USDA to help producers recover. Learn more at https://www.usda.gov/disaster.



USDA Resumes Continuous Conservation Reserve Program Enrollment

As part of a 33-year effort to protect sensitive lands and improve water quality and wildlife habitat on private lands, the U.S. Department of Agriculture (USDA) will resume accepting applications for the voluntary Conservation Reserve Program (CRP). Eligible farmers, ranchers, and private landowners can sign up at their local Farm Service Agency (FSA) office between June 4 and Aug. 17, 2018.

“The Conservation Reserve Program is an important component of the suite of voluntary conservation programs USDA makes available to agricultural producers, benefiting both the land and wildlife. On the road, I often hear firsthand how popular CRP is for our recreational sector; hunters, fishermen, conservationists and bird watchers,” U.S. Secretary of Agriculture Sonny Perdue said. “CRP also is a powerful tool to encourage agricultural producers to set aside unproductive, marginal lands that should not be farmed to reduce soil erosion, improve water quality, provide habitat for wildlife and boost soil health.”

FSA stopped accepting applications last fall for the CRP continuous signup (excluding applications for the Conservation Reserve Enhancement Program (CREP) and CRP grasslands). This pause allowed USDA to review available acres and avoid exceeding the 24 million-acre CRP cap set by the 2014 Farm Bill. New limited practice availability and short sign up period helps ensure that landowners with the most sensitive acreage will enroll in the program and avoid unintended competition with new and beginning farmers seeking leases. CRP enrollment currently is about 22.7 million acres.

2018 Signup for CRP
For this year’s signup, limited priority practices are available for continuous enrollment. They include grassed waterways, filter strips, riparian buffers, wetland restoration and others. To view a full list of practices, please visit the CRP Continuous Enrollment Period page.

FSA will use updated soil rental rates to make annual rental payments, reflecting current values. It will not offer incentive payments as part of the new signup.

USDA will not open a general signup this year, however, a one-year extension will be offered to existing CRP participants with expiring CRP contracts of 14 years or less. Producers eligible for an extension will receive a letter with more information.

CRP Grasslands
Additionally, FSA established new ranking criteria for CRP Grasslands. To guarantee all CRP grasslands offers are treated equally, applicants who previously applied will be asked to reapply using the new ranking criteria. Producers with pending applications will receive a letter providing the options.

About CRP
In return for enrolling land in CRP, USDA, through FSA on behalf of the Commodity Credit Corporation (CCC), provides participants with annual rental payments and cost-share assistance. Landowners enter into contracts that last between 10 and 15 years. CRP pays producers who remove sensitive lands from production and plant certain grasses, shrubs and trees that improve water quality, prevent soil erosion and increase wildlife habitat.

Signed into law by President Reagan in 1985, CRP is one of the largest private-lands conservation programs in the United States. Thanks to voluntary participation by farmers, ranchers and private landowners, CRP has improved water quality, reduced soil erosion and increased habitat for endangered and threatened species.

The new changes to CRP do not impact the Conservation Reserve Enhancement Program, a related program offered by CCC and state partners.

Producers wanting to apply for the CRP continuous signup or CRP grasslands should contact their USDA service center. To locate your local FSA office, visit www.farmers.gov. More information on CRP can be found at www.fsa.usda.gov/crp.



Farm Organizations Look for Negotiations with China to Achieve Durable Market Access

Eighteen U.S. agricultural organizations sent a letter to President Trump on May 31, 2018, expressing hope that he will “prioritize negotiations with China to resolve many longstanding obstacles to U.S. agricultural exports while avoiding mutually destructive tariffs.”

The organizations agree that there are certainly major problems in the U.S. trade relationship with China, and they stated that the Trump Administration has “rightfully identified many unfair trading practices by China that harm the U.S. economy.” The groups want to see a “major recalibration of our trade relationship with China” that would result in U.S. producers “receiving the full benefits of China’s accession to the World Trade Organization.”

Instead of seeing tariffs imposed, the groups support “establishing normal commercial relations with China based on predictability, transparency, and market openness.” These organizations hope that there will be serious, productive, substantive negotiations that will result in “durable market access” for U.S. producers and “policymaking transparency” by Chinese authorities.

“The reputation of U.S. agriculture as a reliable supplier to the world is critical to the future of the industry,” the groups wrote. “We strongly encourage negotiations leading to open and predictable trade, particularly in cooperation with other countries in the region that share our concerns about China’s mercantilist policies.”

The following organizations signed the letter to President Trump:
American Farm Bureau Federation
American Soybean Association
National Association of Wheat Growers
National Barley Growers Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Sorghum Producers
National Sunflower Association
United Fresh Produce Association
U.S. Canola Association
U.S. Dry Bean Council
U.S. Grains Council
U.S. Soybean Export Council
U.S. Wheat Associates
USA Dry Pea & Lentil Council
USA Poultry & Egg Export Council
USA Rice Federation
Western Growers



Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 498 million bushels in April 2018. Total corn consumption was down 5 percent from March 2018 but up 2 percent from April 2017. April 2018 usage included 91.2 percent for alcohol and 8.8 percent for other purposes. Corn consumed for beverage alcohol totaled 3.10 million bushels, up 14 percent from March 2018 and up 4 percent from April 2017. Corn for fuel alcohol, at 445 million bushels, was down 6 percent from March 2018 but up 3 percent from April 2017. Corn consumed in April 2018 for dry milling fuel production and wet milling fuel production was 91.1 percent and 8.9 percent respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.83 million tons during April 2018, down 6 percent from March 2018 but up 5 percent from April 2017. Distillers wet grains (DWG) 65 percent or more moisture was 1.39 million tons in April 2018, down 1 percent from March 2018 but up 7 percent from April 2017.

Wet mill corn gluten feed production was 305 thousand tons during April 2018, down 5 percent from March 2018 and down 12 percent from April 2017. Wet corn gluten feed 40 to 60 percent moisture was 255 thousand tons in April 2018, down 8 percent from March 2018 and down 10 percent from April 2017.



Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.15 million tons (172 million bushels) in April 2018, compared to 5.47 million tons (182 million bushels) in March 2018 and 4.51 million tons (150 million bushels) in April 2017. Crude oil produced was 1.96 billion pounds down 5 percent from March 2018 but up 13 percent from April 2017. Soybean once refined oil production at 1.44 billion pounds during April 2018 decreased 1 percent from March 2018 but increased 10 percent from April 2017.

Canola seeds crushed for crude oil was 152 thousand tons in April 2018, compared to 164 thousand tons in March 2018 and 164 thousand tons in April 2017. Canola crude oil produced was 131 million pounds down 6 percent from March 2018 and down 7 percent from April 2017. Canola once refined oil production at 109 million pounds during April 2018 was down 10 percent from March 2018 and down 14 percent from April 2017. Cottonseed once refined oil production at 40.3 million pounds during April 2018 was down 17 percent from March 2018 and down 16 percent from April 2017.

Edible tallow production was 82.6 million pounds during April 2018, down 5 percent from March 2018 but up 14 percent from April 2017. Inedible tallow production was 305 million pounds during April 2018, down 11 percent from March 2018 but up 5 percent from April 2017. Technical tallow production was 92.8 million pounds during April 2018, down 7 percent from March 2018 but up 3 percent from April 2017. Choice white grease production at 104 million pounds during April 2018 decreased 5 percent from March 2018 but increased 3 percent from April 2017.



Day One of World Meat Congress Features Ag Ministers, Trade Policy Experts, Leading Economic Analysts

On a day filled with breaking trade news, World Meat Congress attendees heard from U.S. Agriculture Secretary Sonny Perdue and his counterparts from Canada and Argentina, along with leading experts in the areas of trade policy and economic analysis. The 22nd World Meat Congress is being held in Dallas May 31 and June 1, hosted by the U.S. Meat Export Federation (USMEF) and the International Meat Secretariat.

Perdue delivered Thursday’s keynote address, reminding the audience of the millions of consumers who benefit from agricultural innovation, advancement and trade.

“There are many businesses out there that you could be involved in, but just think about the noble cause of feeding people,” Perdue said. “Canada, the U.S., Mexico and other nations will compete, as we should, but hopefully we can do that in a wholesome and healthy fashion. Competition is good because it drives all of us to be better, and we want to be better for mankind.”

Canadian Minister of Agriculture and Agri-Food Lawrence MacAulay emphasized that the red meat industry is a critical economic engine for Canada and many other countries represented at the World Meat Congress.

“The red meat sector is vital to our economies,” he said. “In Canada the red meat industry is our largest food-manufacturing sector. It is one of the largest employers in the Canadian food industry, and it drives over $8 billion in agriculture and agri-food exports.”

MacAulay explained that the industry faces a daunting task of meeting rapidly growing demand for red meat, while also protecting land, air and water resources and reducing its environmental footprint.

“The good news is, I firmly believe that we are up to the challenge,” he said. “I firmly believe that we can supply the growing demand for meat in the 21st century in a sustainable way, because our industry has a track record to prove it.”

Argentine Minister of Agro-industry Luis Miguel Etchevehere noted that his nation knows all too well the negative impact protectionism imposes on agricultural producers, and reversing this damage is a priority for President Mauricio Macri, who was elected in 2015 on a pro-trade agenda.

“I come from a country where a former government prohibited the exportation of beef because of a demagogic policy aimed at having very cheap beef for many years,” Etchevehere explained. “That produced a 12 million head reduction in our beef cattle stock, and it was a very big mistake. When President Macri arrived, he did the opposite. He opened the economy and we continue to work on opening markets, because we know that we must have access to enough markets for our industry to reach its full potential.”

When Perdue and MacAulay met with reporters following the World Meat Congress general session, NAFTA was naturally the lead topic.

“I just visited with Minister MacAulay and we both acknowledged that we have too much in common to allow trade disruptions to divide us,” Perdue said. “I’m hopeful that we can get back to the business of talking about how we can resolve this issue and do right and feed everyone. NAFTA has been generally good for agriculture in most aspects. But we need to make sure that we have equivalency in food safety, sanitary and phytosanitary issues, and then let our producers compete.”

“What we want to see happen is, I think, what most American farmers want,” said MacAulay. “I’ve had the opportunity to be in this country quite a number of times and I’ve never met anybody, practically, who’s not saying that NAFTA is vitally important to the agricultural sector. So representing agriculture in my country it would be pretty wise for me to make sure that I promote NAFTA and make sure that we come up with a deal that’s even better.”

Kenneth Smith, chief NAFTA negotiator for the Mexican Ministry of Economy, was also a featured speaker at the World Meat Congress. Smith participated in a panel discussion on the future direction of the global trading system. The panel also included Ken Isley, administrator of the USDA Foreign Agricultural Service and Jesus Zorrilla, agriculture minister-counsellor at the European Union delegation to the United States. The panel was moderated by Darci Vetter, former chief agricultural negotiator for the Office of the U.S. Trade Representative.

Meeting with reporters covering the World Meat Congress, Smith emphasized that Mexico will not be rushed into revising NAFTA, despite concerns about Mexico’s upcoming presidential election and the mid-term U.S. elections this fall.

“We will negotiate as long as it takes, and we will not rush into closure if the substance is not there,” Smith said. “The substance must guide the negotiation, so regardless of the political process in Mexico or the (U.S.) elections in November, we will continue negotiating and we will close only when Mexican priorities have been addressed and we can come back to our country and say we have an upgraded NAFTA.”

While NAFTA promised to be a hot topic at the World Meat Congress, the discussion intensified after the Trump administration announced that beginning June 1, steel and aluminum imports from Canada, Mexico and the European Union will be subject to higher tariffs. Both Mexico and Canada announced their intention to impose countermeasures. A statement from USMEF President and CEO Dan Halstrom is available online.

In the panel discussion, Vetter asked Zorrilla to explain how the EU’s entry into new trade agreements has advanced the competitiveness of its meat sector.

“Only two years ago, the trade priority of the European Union was a trade agreement with the U.S.,” Zorrilla explained. “But now we are in discussions with Indonesia and we have signed an agreement with Vietnam. In addition to Korea (where the EU has a free trade agreement in place) and Japan (an economic partnership agreement that has been reached but not yet ratified), we are also in discussions with the Philippines, so in that region we see great opportunity. Also in our agreements with more competitive meat-producing countries like Canada and Mexico, we will partially open our market and that will bring competition. It will increase cooperation and we will have very solid relations with those countries.”

Building on earlier comments from Perdue, Isley reiterated the United States’ commitment to science-based meat trade.

“It’s our belief that we need to apply sanitary and phytosanitary standards that are risk-based, that are scientifically based and that are uniformly applied,” he said. “Given those circumstances, we feel very confident that U.S. agriculture, our farmers and ranchers, can compete very favorably in the global marketplace with our abundance of products that are safe, nutritious and in demand throughout the world.”

Markets that pose definite challenges but also provide great opportunities for red meat exporters were the focus of the panel discussion titled, “A World of Change: Factors Affecting Red Meat Trade.” USMEF Economist Erin Borror served as moderator for the presentation, which opened with a broad look backward and forward at world meat production, consumer demand and trade. Timely topics such as obstacles in trade negotiations and the effects of potential trade wars were a big part of the discussion.

Experts from China, Mexico and Russia each offered insights into the factors that are expected to fuel the world’s red meat industry in the near future.

Amy Xu, general manager of the import division for China National Cereals, Oils and Foodstuffs Corporation (COFCO), Pablo Sherwell, head of RaboResearch Food and Agribusiness - North America, and Daniil Khotko, a leading industry analyst for IKAR, a company that monitors and forecasts Russia's agricultural commodity markets, made up the panel.

They were joined by Michael Drury, chief economist for McVean Trading and Investments, who has extensively studied China and the effect its economic growth has on the rest of the world.

“The goal of the panel is to try to really hit on areas that are fast-changing and less understood,” said Borror. “It was an opportunity to bring experts from these markets and hear what’s happening on the ground – things that may not be readily accessible via data. It’s a chance to learn from inside the market as to what is driving economic growth and demand for red meat.”

China’s speedy rise as a dominant import market and the fierce competition to meet its growing demand drew strong interest from World Meat Congress attendees.

Xu explained that China's domestic pork production is rebounding. Pork import opportunities still exist, although questions remain as to the extent that future growth in pork consumption will create a need for more imports. The country’s growing demand for imported beef is expected to continue, Xu said, but she noted that Chinese consumers remain price-driven.

“Opportunities do exist for high-end beef cuts, because a segment of the population is able and willing to pay the price,” Xu said. “U.S. beef is on the high end of the price scale, but there is great interest in U.S. beef.”

Challenges faced in Russia include questions about the expansion of domestic pork production, whether the country’s limited pork exports will achieve a major growth cycle and what effect this might have on Russian consumers who are sensitive to pricing. Russia’s beef industry is already hampered by price issues.

Still, Russian livestock producers have an eye on the global market. In the foreseeable future, Khotko feels Russia is more likely to become a competitor than a customer of U.S. pork and beef.

Borror pointed out that Mexico's domestic beef and pork sectors have attracted significant investment, but production growth may be offset by growing consumption, especially when it comes to pork.

“Mexican consumers have a much more positive view of pork than they did 20 years ago, and they are learning to eat pork in new ways,” said Sherwell. “Also, economic growth in Mexico has changed people’s diets. We’ve seen more protein put into their diets and consumption rates have climbed.”

Drury focused his remarks on three key factors: complacency, especially with regard to a coming recession; volatility; and the speed at which change occurs, particularly in China. He highlighted that we live in a global economy, largely fueled by multinational companies, and offered insights on how future political shifts could have implications for international trade. Drury also noted that he doesn’t see the Trump administration changing its approach to trade.

The World Meat Congress concludes Friday with panel discussions on the latest in red meat production technologies, the impact of consumer demands and societal norms on food production practices and preparing for tomorrow’s consumer. Friday’s keynote speaker is best-selling author Jeff Fromm, whose books include Marketing to Millennials, Millennials with Kids and Marketing to Gen Z. For more details, visit www.2018wmc.com.



NCGA Calls for Year-Round E15

Consumers across the country will lose access to the option of E15 today, just as families plan to hit the road on summer vacation and gas prices are on the rise. Despite President Trump’s repeated commitment to year-round E15, an outdated regulatory barrier still limits the ability of fuel retailers to offer ethanol blends greater than 10 percent in most of the country from June 1 to September 15.

The National Corn Growers Association is urging the Environmental Protection Agency to expeditiously take steps to remove this barrier and allow for year-round sales of ethanol blends greater than 10 percent, such as E15.

“E15 is typically more affordable at the pump and is better for the environment,” said NCGA President Kevin Skunes. “There is no good reason to limit access to E15 in the summer, which is an especially busy time for families making more stops to refuel.”

Federal law and regulations limit the amount of evaporative emissions from vehicle fuel, which is measured by its Reid Vapor Pressure (RVP). Fuels blended with up to 10 percent ethanol have a one-pound RVP waiver because ethanol-blended fuels reduce tailpipe emissions. To date, EPA has declined to grant a similar waiver to E15, even though research shows E15 produces the same or fewer evaporative emissions as E10. E15 is currently sold at more than 1300 stations in 29 states.

At a May 8 White House meeting, President Trump reaffirmed his commitment to providing RVP parity for E15 and allowing consumers to have more choice at the pump year-round. The Environmental Protection Agency (EPA), however, has yet to announce the necessary regulatory steps to make this a reality. NCGA believes EPA should address the RVP regulatory barrier separately and should not combine the agreed-upon RVP fix with proposals damaging to our export markets such as offering biofuels credits on ethanol exports.



USDA Announces Commodity Credit Corporation Lending Rates for June 2018
The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation today announced interest rates for June 2018. The Commodity Credit Corporation borrowing rate-based charge for June is 2.250 percent, up from 2.125 percent in May.

The interest rate for crop year commodity loans less than one year disbursed during June is 3.250 percent, up from 3.125 percent in May.

Interest rates for Farm Storage Facility Loans approved for June are as follows, 2.625 percent with three-year loan terms, up from 2.500 percent in May; 2.875 percent with five-year loan terms, up from 2.625 percent in May; 3.000 percent with seven-year loan terms, up from 2.750 percent in May; 3.000 percent with 10-year loan terms, up from 2.875 percent in May and; 3.000 percent with 12-year loan terms, up from 2.875 percent in May.