Wednesday August 8 Ag News

EXTENSION HELPING NEBRASKA FARM FAMILIES PLAN FOR THE FUTURE

Nebraska Extension is focused on making sure those at the front line of the agriculture industry — farm and ranch families — have a plan in place for how operations will be managed for years to come.

According to Allan Vyhnalek, an extension educator focused on farm succession, roughly half of all Nebraska producers do not have a succession plan. As the average age of Nebraska’s farm and ranch operators trends older, it’s important for those operators to have a plan to pass on the family operation.

“The importance of having a farm or ranch succession plan in place cannot be overestimated,” Vyhnalek said. “These plans force operators to answer numerous questions regarding business, family, tax and legal issues, so it’s important to plan ahead.”

Nebraska Extension has developed a number of resources to support families through this decision-making process. In addition to extension educators available year-round to assist producers, workshops have been developed to help them understand the importance of developing a succession plan.

If the farm will be transitioned or succeeded to the next generation, the size of the operation needs to be considered. Most agriculture professionals estimate that an operation should be roughly 1,200 to 1,500 row crop acres to support a family. When considering a farm succession plan, not only will there need to be enough land to support the new family running the operation, but also support for the older generation in retirement. This means that crop farmers in Nebraska might need an operation of nearly 2,600 to 3,000 acres to support two families. If livestock is part of the operation, the number of farmland acres needed for the farm to succeed could be lowered.

“Unfortunately, we see some situations where two families are trying to live off an operation that’s only large enough to support one family, which can be very rough, especially with today’s commodity prices,” Vyhnalek said.

When it comes to estate planning, it’s common for older generations of Nebraskans to want to divide their land and assets equally. While it seems like a straightforward approach, this decision could have unintended consequences, Vyhnalek said. For instance, if there are four heirs of an operation, each receiving 25 percent of the assets, this division could be unequitable for the heir that has spent their whole life working on the farm or ranch.

“To treat the next generation fairly may not mean treating your children equally,” Vyhnalek said.

Nebraska Extension also offers assistance for those on the other side of a succession plan. So You’ve Inherited a Farm: Now What? is a popular workshop series for those who have recently inherited a farm or ranch but have no experience managing an operation. The workshop covers topics such as keeping or selling the farm or ranch; managing an operation; key lease provisions; legal considerations; and family communications. Vyhnalek and extension educator Jim Jansen lead the workshops, which are archived online.

“I receive phone calls from people in their 50s and 60s who have inherited land and have no idea how to manage it, because they’ve been off the farm for decades,” Vyhnalek said. “So You’ve Inherited a Farm: Now What? is designed to guide individuals through the process of managing the asset.”

Through one-on-one consultations, webinars and workshops, Nebraska Extension is committed to helping the state’s farm families plan for the future. To view a full list of upcoming events focused on land transitions and succession planning, visit https://agecon.unl.edu/farm-succession.



Inaugural Farm to Fair Dinner to be Featured at the 2018 Iowa State Fair

Iowa farmers are inviting 500 lucky guests to join them at the largest dinner table ever set at the Iowa State Fair, Sunday, August 12, 2018 from noon to 2 p.m. on Grand Avenue. The inaugural event focuses on agricultural education and attendees will have an opportunity to eat, learn, engage and discover facts about Iowa farming and food grown right here in Iowa. With only two percent of the population farming today, this is their chance to sit next to a farmer and enjoy a meal made from locally-sourced ingredients. From beef, pork, corn, dairy, eggs, soybeans and turkey, it’s coming straight from the farm to the Iowa State Fair.

“Iowa dairy farmers are proud to bring dairy to life and share their dairy farm stories as part of this new Iowa State Fair tradition,” Jenna Finch, Midwest Dairy farmer relations manager. “Celebrating dairy farmers’ devotion to dairy makes it easy to bring new experiences to the fair. This year we’re excited to partner with other Iowa agriculture groups to share our common voice.”

Dairy foods will be front and center at The Dairy Barn, which is one of the Iowa State Fair’s most popular concessions and owned by Iowa’s dairy farm families. The building, located north of the cattle barn, is open daily from 10 a.m. to 9 p.m. The Dairy Barn serves shakes, milk and hand-dipped ice cream. In 2017, more than 56,000 ice cream treats – including 21,700 shakes – were served throughout the fair. In addition, hand-dipped ice cream will be served at the second Dairy Barn location, which is in the Ag Building.

While vising the Ag Building, check out this year’s butter cow. Sarah Pratt, a teacher by trade, will be returning to the fair to sculpt 600 pounds of butter. This year, the world-famous Iowa State Fair Butter Cow will be featured beside the Waterloo Boy Tractor to celebrate John Deere’s 100th anniversary of entering the tractor business. Fair-goers can watch and learn about the process of milking a cow every day at the “I Milked a Cow” exhibit presented by the Iowa State University Dairy Science Club. The booth is located in the Boulevard of Dairy Breeds, John and Emily Putney Family Cattle Barn. For $3, the general public can try out their milking talent on a live cow.

Each year, the Iowa State Fair celebrates the more than 1,100 dairy farmers in the state who are contributing 15,370 jobs and delivering an overall economic impact of $3.88 billion produced and sold in Iowa. To learn more about dairy farming in the Midwest, including Iowa, visit MidwestDairy.com.



New Dairy Revenue Protection Insurance Plan Available Nationwide

The U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA) today announced a new insurance plan for dairy producers that insures against unexpected declines in quarterly milk sales. Sign-up for the new product begins Tuesday, October 9, 2018, with the first available coverage starting the first quarter of 2019.

“Expanding the Federal crop insurance program to markets that need it is key to an effective farm safety net. Because of cooperation with partners like the American Farm Bureau Federation, we are able to offer this new product in a way that it can be flexible based on the needs of dairy producers,” said Bill Northey, Under Secretary, Farm Production and Conservation.

The new plan, called Dairy Revenue Protection, provides insurance for the difference between the final revenue guarantee and actual milk revenue if prices fall. It also provides a greater choice of prices, from those that focus on cheese to fresh milk, protein or butterfat. Coverage levels are available from 70 to 95 percent of revenue. Dairy Revenue Protection is available in all counties in all 50 states.

Participating producers are not precluded from participation in the USDA Farm Service Agency’s Margin Protection Plan.

Those interested in purchasing Dairy Revenue Protection must do so through an agent selling on behalf of an approved insurance provider. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator, located at www.rma.usda.gov/tools/agent.html.

Dairy Revenue Protection was developed and approved through the Federal Crop Insurance Act’s 508(h) process, which allows private parties to develop insurance products that are in the best interests of producers, follow sound insurance principles and are actuarially appropriate.
Dairy Revenue Protection is another risk management tool in the toolbox available to dairy producers. Federal crop insurance helps producers and owners manage risks and strengthens the rural economy. Additional information regarding Dairy Revenue Protection is available on the RMA website’s Livestock page, located at www.rma.usda.gov/livestock/.



 NMPF Fights for Science-Based Global Nutrition Guidance for Young Children

To help maintain the important role that dairy foods play in the diets of young children, the National Milk Producers Federation has been pushing back against misguided World Health Organization (WHO) policies that would discourage the consumption of dairy products by kids under age 3.

The WHO creates standards, rules and guidelines that influence the policies and views of countries all over the world. The WHO standards are utilized by the governments of many of U.S. dairy companies’ export customers, and also shape the development of U.S. policies and guidance impacting food and agriculture. NMPF is working with the U.S. Dairy Export Council (USDEC) to engage more deeply in these arenas and set the record straight against misleading claims about the proper role of dairy foods.

Last month, NMPF and USDEC sent a representative to the annual Codex Alimentarius Commission (CAC) meeting to guard against efforts to codify WHO guidance restricting the sharing of marketing information about dairy foods. Another key priority at that Codex meeting was ensuring that Codex’s independent role as the global scientific standard-setting body was upheld in the face of efforts by some to redirect its focus and approach.

In May, the World Health Assembly (WHA) – part of the WHO – considered a resolution that would have effectively discouraged the consumption of dairy products by children younger than age three. The United States government supported most of the resolution, which was primarily focused on the benefits of breast-feeding by infants, while fighting against text in the resolution intended to discourage the consumption of milk and other dairy products by young children ages one and two.

Unfortunately, those facts were missing from a news article in The New York Times that erroneously alleged U.S. government representatives pushed for a policy that was anti-breastfeeding. NMPF responded with a news release offering the truth: that there have been consistent, bipartisan efforts dating back to 2016 to direct WHO policies impacting dairy consumption by young children back toward ones supported by science.

To help set the record straight, NMPF also reached out to congressional offices and media outlets to refute the misinformation and supply facts about the U.S. dairy industry’s support for the American Academy of Pediatrics’ recommendations on breastfeeding until age one and providing dairy products to young children to support their healthy development.

NMPF will continue to defend the important role of dairy nutrition and push back against efforts to impose restrictions on dairy products that are unsupported by sound science.



 CWT-Assisted Contracts Sell 24 Million Pounds of Dairy Exports in July

Cooperatives Working Together last month helped member co-ops secure 43 contracts to sell 5.35 million pounds of American-type cheeses, 855,394 pounds of butter and 18.73 million pounds of whole milk powder to customers in Asia, the Middle East, North Africa and Oceania. The product will be shipped to customers in 12 countries in four regions of the world from July through December 2018.

These contracts bring the 2018 total of CWT-assisted product sales to 45.45 million pounds of cheese, 12.09 million pounds of butter and 27.11 million pounds of whole milk powder. These transactions will move overseas the equivalent of 889.25 million pounds of milk on a milkfat basis. The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

Helping CWT member cooperatives gain and maintain world market share through the Export Assistance program in the long-term expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Farmers for Free Trade Announces $800,000 Ag Radio, Print, and TV Ad Buy Highlighting Tariff Impact in the Heartland

Today, Farmers for Free Trade, the bipartisan campaign chaired by Senators Richard Lugar (R-IN) and Max Baucus (D-MT) that is leading the fight against tariffs that are harming rural communities, announced a major new ad buy with ag publications in states across the country.  The ad buy is part of a new campaign called “Tariffs Hurt the Heartland” that is investing in local ads, town hall events on tariff impact in states across the country, and raising awareness about financial and job losses tied to the ongoing trade war. The advertisements will be a mix of radio, television, and print advertising that will run initially in Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Nebraska, Ohio, South Dakota, and Wisconsin.

Listen to the two radio ads that will run beginning today here and here. The advertising, which also includes TV spots on local and nationally syndicated ag TV and print ads, will run through September.

“These ads will speak to American farmers who are watching the value of their hard work decrease every day as tariffs force the price of their crops and livestock downward,” said Sara Lilygren, president of the Farmers for Free Trade board.  “They are messages from farmers to farmers about how decisions in Washington D.C. are hurting their farms, their neighbors and the economy of rural America. We are taking the message that tariffs hurt ag directly to farmers at their breakfast tables, on their combines, and in the farm news outlets they check every single day.”

“Free trade is essential to the ag economy,” Indiana soybean farmer Brent Bible says in one of the radio spots that will be played in all ten states. “This is not a war that I signed up for. It’s not a war I want to be drafted for. Our farm and many others like ours will be the first casualties of a trade war.”
Farmers for Free Trade is a bipartisan campaign to rebuild support for trade and is dedicated to supporting and expanding the economic benefits of free trade for farmers and ranchers. Farmers for Free Trade is supported by America’s leading agricultural organizations and businesses and farmers and ranchers across the country. Farmers for Free Trade is working to keep, enhance and advance trade agreements by lending a pragmatic voice to negotiations impacting the industry.  Farmers for Free Trade is co-chaired by former U.S. Senators Max Baucus (D-MT) and Richard Lugar (R-IN). For more information, please contact info@farmersforfreetrade.com, follow us @FarmersForTrade or visit www.FarmersForFreeTrade.com.



Most Fertilizer Prices Still Higher

Average retail fertilizer prices continued mostly higher the last week of July 2018, according to retailers surveyed by DTN. However, for the first time in several weeks, multiple fertilizers did show slightly lower prices compared to a month ago.

Five of the eight major fertilizers were slightly higher than last month. DAP had an average price of $488 per ton, MAP $505/ton, potash $355/ton, urea $366/ton and 10-34-0 $443/ton.

Three fertilizers were slightly lower from the previous month. Anhydrous had an average price of $498 per ton, UAN28 $242/ton and UAN32 $279/ton.

One interesting thing to note is the price of anhydrous. The nitrogen fertilizer's price of $498 per ton was under $500 per ton for the first time since the first week of March 2018 when the price was $499 per 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 $0.44/lb.N.

All eight of the major fertilizers are now higher compared to last year with prices shifting higher in recent months. 10-34-0 is 4% higher, potash is 5% more expensive, UAN32 is 6% higher, UAN28 is 7% more expensive, MAP is 9% higher, DAP is 12% more expensive, urea is 18% higher and anhydrous is 19% more expensive compared to last year.



Biofuel and Farm Leaders Mark 13th Anniversary of the RFS

Thirteen years ago this Wednesday, August 8, the Renewable Fuel Standard (RFS) was signed into law, sparking a new era of U.S. biofuel leadership that continues to support rural jobs, increase energy security, and deliver clean, affordable options at the fuel pump. The nation’s leading farm and biofuel advocates marked the occasion by calling on Acting Administrator Andrew Wheeler at the Environmental Protection Agency (EPA) to quickly deliver on the president’s pledge to uphold the RFS and expand the market for ethanol blends, including E15.

“For 13 years, the RFS has been a driving force for economic opportunity across the heartland,” said Kevin Skunes, president of National Corn Growers Association (NCGA) and a North Dakota farmer. “Today, biofuels are more important than ever. Farm income has fallen to a 12-year low, and the EPA’s refinery waivers have left more and more families facing an uncertain future. The EPA can address this uncertainty and take action now by approving year-round sales of ethanol blends greater than 10 percent, accounting for exemptions granted to refineries and reallocating exempted volumes to keep the RFS whole.”

In July, the EPA announced proposed biofuel targets for 2019, offering no protection against waivers and loopholes abused by the previous EPA administrator. The plan is available for public comment until August 17, and advocates have launched a web portal at FuelsAmerica.Org/Action-Center, where supporters are invited to make their voices heard. Rural leaders also are calling for action on the president’s pledge to lift outdated summer regulations against selling E15, a lower-cost ethanol blend that President Trump vowed is “very close” to being available year-round.

“The RFS promotes our homegrown renewable fuels produced by hardworking rural Americans, driving real competition at the pump and ensuring a healthier future for generations to come,” said Growth Energy CEO Emily Skor. “By expanding the biofuels market, the administration can deliver on its promise to rural America and provide consumers with cleaner, more affordable fuel options all year long. The EPA must act now on the President’s pledge to farmers, biofuel workers, and consumers.”

“Under the RFS, the biofuel sector has expanded to support hundreds of thousands of jobs at more than 200 plants across the heartland,” said Brent Erickson, executive vice president of the Industrial & Environmental Section at the Biotechnology Innovation Organization (BIO). “It has spurred investment and development of new technologies in advanced and cellulosic biofuels and is critical pillar in the foundation of the biobased economy. But EPA waivers have rolled back our progress, cutting biofuel targets to 2013 levels. The EPA must enforce the law, as Congress intended, and restore U.S. leadership in low-carbon biofuels.”

Since its enactment in 2005 and expansion in 2007, the RFS has driven unprecedented growth, while curbing emissions and increasing U.S. energy security. From 3.9 billion gallons in 2005, America’s biofuel sector produced more than 15.8 billion gallons of ethanol in 2017. Over the same period, America’s net oil imports fell from 12.6 to 3.7 thousand barrels per day. American producers have also increased efficiency, delivering an average carbon savings on track to surpass 50 percent by 2022.

“The RFS remains America’s single most successful energy policy,” said Brooke Coleman, executive director of the Advanced Biofuels Business Council. “Every gallon of U.S. ethanol cuts greenhouse gas emissions by 43 percent, according to federal data, and advanced biofuels are doing even more to protect the climate – all while delivering new revenue streams to U.S. farmers. By lifting outdated regulations on higher-ethanol blends, the EPA can unlock investments in cellulosic energy and keep America at the forefront of innovation.”

“President Trump vowed to protect the engine of economic growth that has delivered for 13 years,” said Kyle Gilley, senior vice president of external affairs and communications at POET. “It is time to allow year-round E15 access for America’s drivers. E15 is an affordable, high-octane fuel that will grow our nation’s biofuel use and allow the RFS to continue to deliver for America.”



Cargo of U.S. Soybeans Heading Toward China, Despite Tariffs

A ship with U.S. soybeans set sail for China last week, according to data released Monday, showing that the Asian nation is still importing some quantities of the commodity grown in America despite tariffs imposed by the government in July.

According to Bloomberg, the bulk carrier Betis departed Gavilon Group LLC's export terminal in Kalama, Washington, for Shanghai on July 29, carrying the first cargo of American soybeans destined for China in three weeks, according to a report published by the U.S. Department of Agriculture.

China is widely expected to reduce imports of U.S. soybeans and buy more from Brazil.

The Betis is the fourth ship departing from U.S. shores with American soybeans since mid-June. But only one of the other three vessels has actually delivered a cargo, according to shipping data compiled by Bloomberg. Cemtex Pioneer arrived at Nantong port on Monday afternoon local time, making it the first U.S. soybean ship to arrive after China imposed an additional 25 percent import tariff on American beans in July, according to Bloomberg shipping data. Peak Pegasus arrived at Dalian on July 6 but is still waiting outside the port, the data show.