Wednesday September 26 Ag News

USDA Providing Funds to Protect and Restore Agricultural Lands, Grasslands and Wetlands Across Nebraska

USDA’s Natural Resources Conservation Service is now accepting applications for the Agricultural Conservation Easement Program (ACEP). This program, created under the 2014 Farm Bill, provides funding for the purchase of conservation easements to help productive farm and ranch lands remain in agriculture and to restore and protect critical wetlands and grasslands.

Nebraska state conservationist Craig Derickson said, “Conservation easements are a good tool to ensure natural resources are conserved and protected for all Nebraskans. We encourage Indian tribes, state and local governments, non-governmental organizations and private landowners to contact their local NRCS office to find out how to apply.”

The main goal of ACEP is to prevent productive agriculture land from being converted to non-agricultural uses and to restore and protect wetlands and wildlife habitat. Cropland, rangeland, grassland, pastureland and nonindustrial private forestland are eligible.

Applications can be submitted at any time, but to be considered for 2019 funding opportunities, applications in Nebraska must be received by Nov. 1, 2018. Applications are currently being accepted for both agricultural land and wetland reserve easements.

NRCS provides technical and financial assistance directly to private and tribal landowners to restore, protect, and enhance wetlands through the purchase of conservation easements. Eligible landowners can choose to enroll in a permanent or 30-year easement. Tribal landowners also have the option of enrolling in 30-year contracts.

A key option under the agricultural land easement component is the "grasslands of special environmental significance" that will protect high-quality grasslands that are under threat of conversion to cropping, urban development and other non-grazing uses.  To qualify, the application would need to be located in an area meeting the designated criteria.

All applications will be rated according to the easement’s potential for protecting and enhancing habitat for migratory birds, fish and other wildlife. Eligible applicants will be compensated with a payment rate comparable to the local land use value.

Applicants will need to provide accurate records of ownership and ensure they have established current fiscal year ownership eligibility with USDA’s Farm Service Agency. Application information is available at your local USDA Service Center and at www.nrcs.usda.gov/GetStarted.

“NRCS staff will work with all interested applicants to help them through the application process and provide one-on-one assistance to create the conservation easement option that works best for their farming or ranching operation,” Derickson said.

For more information about the USDA Natural Resources Conservation Service and the programs and services it provides, visit your local USDA Service Center or www.ne.nrcs.usda.gov.



Land O'Lakes CEO to Address ABA National Ag Bankers Conference

Land O’Lakes President and CEO, Beth Ford, is among the headline speakers who will address the nation’s largest gathering of ag lenders at the American Bankers Association National Agricultural Bankers Conference Nov. 11-14 in Omaha, Neb. This year’s event, hosted at the CHI Health Center Omaha, will cover the most pressing issues in agricultural lending today including U.S. trade policy, commodity prices and the way technology is changing ag finance.

Ford, one of just 25 female CEOs leading a Fortune 500 company, will explain how consumer trends are changing the way businesses operate, as well as opportunities and challenges ahead in the ag sector and overall economy. In addition to Ford, ag lenders will hear from former USDA Chief Economist Dr. Joseph Glauber on current U.S. trade policy and how it will affect farmers; Amazon Web Services’ Head of AgTech, Cameron Holbrook, on Amazon’s development of cloud technology and its interest in the ag industry; and Dr. Stephen Higgs of Kansas State University on the threat of agricultural biological weapons.

The four-day conference will feature more than 35 sessions on other topics including:
-    Commodity outlooks. The latest updates from the experts on beef, dairy, grains, livestock/pork and—new this year—a super session on permanent plantings, rice and cotton.
-    Succession planning on the farm. This session will help lenders understand the key role they can play in helping businesses and families address succession planning.
-    Regulatory view of ag banking. The OCC and FDIC will share their views on the impact of new regulatory changes on ag and rural lending.
-    How technology is changing ag and ag finance. More than one session will cover the future of ag banking and how bankers can harness the latest financial technologies.

For the second year, the event will include a “Women in Ag Banking Networking Breakfast,” which aims to inspire participants and provide an opportunity to discuss ways to celebrate successes and failures as professional women in the field. This year’s networking session will feature Natalie Bartholomew, author of The Girl Banker Blog.

For additional schedule information or to register for the conference, call 1-800-BANKERS or visit https://www.aba.com/Training/Conferences/Pages/AGR.aspx.




Perdue on Negotiations for a U.S.-Japan Trade Agreement

U.S. Secretary of Agriculture Sonny Perdue today issued the following statement regarding today’s agreement between President Donald J. Trump and Prime Minister Shinzō Abe to begin negotiations for a U.S.-Japan Trade Agreement:

“Achieving high-standard trade agreements is a top priority for American agriculture, and the announcement of the beginning of negotiations for a U.S.-Japan trade agreement is an important step in that process. This is welcome news, since we know that export income is critical to the financial health of agriculture and is a key contributor to rural prosperity. Japan is an important customer for our agricultural products and we look forward to the great potential this breakthrough represents. Today’s announcement is further proof that President Trump’s approach to trade – standing strong for American interests and bringing other countries to the table – will benefit our entire economy, including the agricultural sector.”



Ricketts Hails News of U.S.-Japan Trade Negotiations as “Big Growth Opportunity”

Today, Governor Pete Ricketts issued a statement following news that the United States and Japan had agreed to enter trade negotiations.  The agreement came at a summit meeting in New York between President Donald J. Trump and Prime Minister Shinzo Abe.

“Japan is Nebraska’s number one direct international investor and our second largest trading partner outside of North America,” said Governor Ricketts.  “Last year, Nebraska experienced double-digit growth in beef and pork exports to the country.  A new deal with Japan is critical to sustaining that growth into the future.  Nebraska is grateful for the personal attention both President Trump and Ambassador Lighthizer have given to pursuing a new deal, and I appreciate that our friends in Japan are coming to the table to negotiate around our shared goals.  A new trade deal represents a big growth opportunity for both countries, and I hope negotiations move swiftly.”

NEBRASKA AND JAPAN’S TRADE RELATIONSHIP
Japan is Nebraska’s fourth largest export market, with over $1 billion worth of exports in 2016.  The country is Nebraska’s largest direct international investor with Japanese companies employing about 9,400 people in Nebraska.  They are a top-3 customer for Nebraska beef, pork, eggs, corn, wheat, and soybeans.
·         Beef:  $316.1 million – #1 market
·         Corn:  $244.2 million – #2 market
·         Pork: $198.4 million – #1 market
·         Soybeans and Soybean Products: $81.5 million – #3 market
·         Eggs: $16.8 million – #1 market
·         Wheat: $13.9 million - #2 market



Smith Applauds Progress on Trade between U.S. and Japan

Congressman Adrian Smith (R-NE) released the below statement following a September 26 summit between President Trump and Prime Minister Abe of Japan which produced a joint statement outlining plans for future trade negotiations.

“Japan is one of our most important allies and trading partners, and a bilateral trade agreement between our two nations is long overdue. Today’s meeting between President Trump and Prime Minster Abe represents a positive step toward the negotiation of such an agreement for the benefit of our producers and consumers alike. I have long called for the reduction of trade barriers between United States and Japan, and I encourage our trade negotiators to meet as soon as possible to build on this progress.”

Smith introduced legislation earlier this Congress, H. Res. 236, Recognizing the importance of the United States-Japan partnership and supporting the pursuit of closer trade ties between the United States and Japan.



Statement by Steve Nelson, President, Regarding U.S., Japan Trade Talks

“Ever since the President pulled the United States out of the Trans-Pacific Partnership (TPP) trade agreement, we have urged the Administration to follow through on its promise of developing bilateral free trade agreements with TPP member countries, especially Japan. Today’s announcement that the United States and Japan have agreed to enter trade talks is tremendous news and couldn’t have come at a better time.”

“Japan is already our largest trading partner for Nebraska beef, and a major purchaser of Nebraska agriculture commodities including pork, corn, soybeans, wheat, grain sorghum, and dairy products. There is no doubt that a bilateral agreement with Japan would be a major win for Nebraska farmers and ranchers if the U.S. is able to reach an agreement with similar terms to those previously negotiated under the TPP, specifically as it relates to tariff reduction on agriculture products.”

“TPP was projected to be a boon for Nebraska agriculture, increasing agriculture cash receipts by more than $378 million per year when fully implemented, with much of that gain attributed to increased trade with Japan. If the U.S. can lower Japan’s existing 38.5 percent tariff on U.S. beef which was slated to gradually decline to 9 percent under TPP, that would be a major victory for Nebraska, the ‘beef state’.”



NCBA “Strongly Supports” Expanding Trade with Japan

Today National Cattlemen's Beef Association President Kevin Kester released the following statement in response to the announcement that the United States and Japan will pursue a bilateral trade agreement:

“The National Cattlemen’s Beef Association strongly supports President Trump’s commitment to expanding trade with Japan. Today’s announcement is exciting news for America’s beef producers because Japan is our top export market, accounting for nearly $1.9 billion in U.S. beef sales in 2017. Unfortunately, U.S. beef faces a massive 38.5 percent tariff in Japan—a trade barrier that hurts America’s beef producers and Japanese consumers. NCBA has been a strong advocate for a bilateral trade deal between our nations and looks forward to working closely with the Trump Administration to secure increased market access for our industry. We congratulate President Trump and Prime Minister Abe for taking this important step in our trading relationship. The faster negotiations conclude, the faster U.S. producers can provide more Japanese consumers with the high-quality beef they demand.”



NPPC Lauds Administration On Bolstering Ties With Japan

The National Pork Producers Council strongly praised the Trump administration, following today’s announcement by the White House that the United States and Japan soon will begin trade talks. The Asian nation is the U.S. pork industry’s No. 1 value market, importing in 2017 more than $1.6 billion of U.S. pork.

“This is fantastic news for America’s pork producers,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “Japan has been our top export market for years, so it’s good that the administration wants to solidify the relationship with that important economic and geopolitical ally.

“This is very positive for the U.S. pork industry, and it comes at a time when pork producers were having concerns about losing market share in Japan.”

That’s because the U.S. pork industry’s biggest competitor, the European Union, recently concluded negotiations on a free trade agreement with Japan. That deal is set to become effective early next year. Additionally, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP minus the United States) is expected to be finalized in early 2019.

“We look forward to working with the Trump trade team on bolstering ties with one of our most important trading partners,” Heimerl said.



U.S. Wheat Associates Welcomes Formal Trade Talks with Japan

U.S. Wheat Associates (USW) is excited to hear that the Trump Administration and the Japanese government are taking formal steps toward trade negotiations. The announcement today to “further expand trade and investment between the United States and Japan in a mutually beneficial manner” has the potential to eliminate a dangerous vulnerability for U.S. wheat farmers.

Over the years, Japan has purchased more U.S. wheat than any other country, but also imports wheat from Canada and Australia, which are members of the Trans-Pacific Partnership (TPP) along with Japan. Once ratified, this agreement will include a gradual reduction of Japan’s effective tariffs on milling wheat imported from TPP member countries. While U.S. wheat farmers have excellent and longstanding relationships with Japanese millers, the higher tariffs on U.S. wheat would force them to purchase significantly more Canadian and Australian wheat within a few years of the new agreement’s implementation. That is a result no U.S. wheat grower can afford, and we are hopeful that the Administration will address this problem as an early achievement in the negotiations.

In addition to addressing this specific problem for wheat, we appreciate the emphasis on free, fair and rules-based trade. These negotiations are a positive sign that the United States is again moving toward a comprehensive agreement with Japan and, hopefully, with other countries in the Pacific region and around the world. That would benefit U.S. agriculture and the entire U.S. economy. 



House Ag Committee Holds Roundtable with Doud, McKinney to Discuss Ag Trade Agenda

House Agriculture Committee Chairman K. Michael Conaway (TX-11) and Ranking Member Collin Peterson (MN-7) made the following statement today after holding a roundtable with USTR Chief Agricultural Negotiator, Gregg Doud, and USDA Undersecretary for Trade and Foreign Agricultural Affairs, Ted McKinney, to discuss the administration’s agricultural trade agenda:

“We know the angst in farm country right now. Between low prices, droughts, flooding, hurricanes and the retaliatory tariffs of our trading partners – there is hurt in the heartland. We continue to work with the Administration as they make progress on NAFTA and other trade agreements, but we also recognize that the best thing Congress can do to aid farm country is to provide farmers and ranchers with the certainty and predictability of a five-year farm bill. On that front, we will continue our work until a new farm bill is complete.”



EIA: US Ethanol Stocks Again Decline

Domestic ethanol stocks declined for a second straight week during the week ended Sept. 21 on mixed blending demand and decreased plant production, according to Energy Information Administration data released Wednesday, Sept. 26.

EIA reports ethanol inventories decreased 117,000 barrels (bbl) during the week reviewed to 22.629 million bbl, 1.9 million bbl, or 9.2%, above supply held a year earlier.

Plant production dropped 15,000 barrels per day (bpd) to 1.036 million bpd during the week ended Sept. 21, 4% above the corresponding week in 2017. Four-week averaged production was 1.048 million bpd versus 1.034 million bpd during the corresponding four week period in 2017.

Net refiner and blender inputs, a measure for ethanol demand, slid 27,000 bpd to 901,000 bpd during the week-ended Sept. 21, 1.7% lower than a year ago. For the four weeks ended Sept. 21, blending demand averaged 922,000 bpd, 12,000 bpd more than the same period in 2017.



USDA Outlines Next Steps for Animal Disease Traceability

Greg Ibach, under secretary for the U.S. Department of Agriculture's Marketing and Regulatory Programs, announced USDA's four overarching goals for advancing animal disease traceability to protect the long-term health, marketability and economic viability of the U.S. livestock industry.

"The landscape surrounding animal disease traceability has changed dramatically in the past decade, and producers across the nation recognize that a comprehensive system is the best protection against a devastating disease outbreak like foot-and-mouth disease" Ibach said. "We have a responsibility to these producers and American agriculture as a whole to make animal disease traceability what it should be--a modern system that tracks animals from birth to slaughter using affordable technology that allows USDA to quickly trace sick and exposed animals to stop disease spread."

USDA's four overarching goals for increasing traceability are:
- Advance the electronic sharing of data among federal and state animal health officials, veterinarians and industry; including sharing basic animal disease traceability data with the federal animal health events repository (AHER).

- Use electronic ID tags for animals requiring individual identification in order to make the transmission of data more efficient;

- Enhance the ability to track animals from birth to slaughter through a system that allows tracking data points to be connected; and

- Elevate the discussion with States and industry to work toward a system where animal health certificates are electronically transmitted from private veterinarians to state animal health officials.

These goals reflect the core themes resulting from a State and Federal Animal Disease Traceability Working Group that developed 14 key points for advancing traceability. They are also in keeping with feedback APHIS received at stakeholder meetings held across the country to hear from industry and producers directly.

USDA recognizes that some sectors of the livestock industry have already invested a lot of infrastructure into developing their traceability programs. These new goals complement what those sectors are already doing, and will help increase traceability across the entire industry. USDA is committed to continued discussion and collaboration to ensure we coordinate traceability efforts across the country.

While electronic ID is critical for advancing traceability, it's important to emphasize USDA will not dictate the use of a specific tag technology. Different industries prefer different tag types (low frequency vs. ultra high frequency) and choice will continue to be a cornerstone of USDA's program, giving producers the ability to decide what works best for their operations. Not only will electronic ID allow animals to move more quickly through ports, markets and sales, it will also help ensure rapid response when a disease event strikes.

To assist with the transition to electronic ID, USDA is ending the free metal tags program and instead offering a cost-share for electronic tags. This is something stakeholders have repeatedly told us they need to help transition to electronic ID.

"Another key component of our plan is sharing a few key data elements from existing state and industry animal movement databases with our animal health events repository," said Ibach. "That way, if an outbreak occurs, we can quickly find the information we need to locate and identify potentially diseased or at-risk animals. This helps avoid unnecessary quarantines that could impact producers' livelihoods. And by linking to that information instead of housing it ourselves, we maintain our stakeholders' privacy."

Moving forward, USDA wants to continue to build on the current momentum around animal disease traceability, and will begin implementing these ADT goals starting in fiscal year 2019. USDA will work with our state partners and industry to establish appropriate benchmarks to meet to show progress. USDA will also ensure all new traceability cooperative agreements will be contingent on measurable advancements toward these three goals.



All Fertilizers Higher Third Week of September

Retail fertilizer prices continue to track higher, according to fertilizer prices tracked by DTN for the third week of September 2018. All eight of the major fertilizers' increased from a month earlier. One fertilizer, urea, made a significant 6% move higher compared to the third week of August. The nitrogen fertilizer had an average price of $384 per ton.

The remaining seven fertilizers were all higher in price compared to last month, but none were up a noteworthy amount. DAP had an average price of $494 per ton, MAP $520/ton, potash $362/ton, 10-34-0 $448/ton, anhydrous $494/ton, UAN28 $239/ton and UAN32 $278/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.42/lb.N, anhydrous $0.30/lb.N, UAN28 $0.43/lb.N and UAN32 $0.44/lb.N.

In the U.S., all eight of the major fertilizers are now higher compared to last year with prices shifting higher in recent months. Potash is 5% higher, 10-34-0 is 8% more expensive, UAN32 is 12% higher, UAN28 is 13% more expensive, both MAP and DAP are now 15% higher and both anhydrous and urea are now 23% more expensive compared to last year.



ACE leadership testifies on fuel economy, emissions standards

American Coalition for Ethanol (ACE) CEO Brian Jennings testifies today during the public hearing in Pittsburgh, Pennsylvania, on the Environmental Protection Agency (EPA) and Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) proposed Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks.

Jennings’ testimony emphasizes how ethanol-enriched, high octane fuel blends between 25 and 30 percent (in the 99-100 RON range) would enable automakers to simultaneously reduce greenhouse gas (GHG) emissions and improve fuel economy. The following are excerpts from Jennings’ testimony:

“We are grateful EPA and NHTSA are seeking comment on how fuel such as 100 RON E30 can provide automakers flexibility to meet CAFE-GHG standards. Research indicates the use of 98 to 100 RON fuel containing at least 25 percent ethanol results in 3 to 9 percent efficiency gains in high-compression engines which are beginning to dominate the marketplace.

“Increasing the content of ethanol in gasoline is but one way to produce high octane fuel. We recognize refiners prefer 95 RON where additional octane is petroleum-derived and ethanol content is capped at 10 percent. Ultimately, however, EPA needs to weigh benefits and costs. In some wholesale markets today, unleaded gasoline costs nearly one-dollar-per-gallon more than ethanol.

“Not only will 98 to 100 RON fuel containing 25 to 30 percent ethanol save consumers compared to the premium-priced octane level being advocated by oil refiners, it is a more cost-effective approach for automakers to achieve meaningful efficiency gains and emission reductions.”

Below are steps ACE will recommend in its written comments and encourages EPA to take during its final rulemaking to enable high octane fuel to play a role in helping automakers meet the 2021-2026 standards, including:
-    Establish or promote a minimum octane fuel rating in the range of 98 to 100 RON with 25 to 30 percent ethanol and propose or invite automakers to propose a corresponding certification fuel for engine testing purposes.
-    Phase out the 85 AKI octane rating in high elevation areas of the country because automakers do not recommend it in their engines.
-    Restore credits for automakers to produce flexible fuel vehicles (FFVs) and establish new incentives for vehicles designed to achieve optimal efficiency on high octane ethanol blends.

ACE encourages ethanol supporters to utilize its Legislative Action Center to submit comments on or before the comment period deadline of Oct. 26.



NCGA at SAFE Vehicles Rule Public Hearing

Michigan farmer and NCGA Ethanol Action team member Russell Braun testified on behalf of NCGA at a public hearing in Dearborn, Mich., September 25 to review the proposed SAFE Vehicles Rule. This proposed regulation would set standards for vehicle fuel efficiency and greenhouse gas emissions. Important for farmers, regulators also requested comments on the benefits and role of high-octane fuels when it comes to meeting vehicle standards.

Corn farmers have a vested interest in the future of transportation fuels, and NCGA wants to ensure automakers have the tools and technology to meet future emissions and efficiency standards, both cost-effectively and safely for drivers. One of these tools is high-octane fuel, such as a mid-level ethanol blend.

Braun’s testimony urged regulators to consider fuels and vehicles as a system of high-octane fuel used with optimized engines. While ethanol may not be the only source of fuel octane, it is the lowest cost - and lowest carbon - octane source currently available to consumers.

Braun also encouraged EPA to use the agency’s authority to support the production and use of higher-octane fuels by addressing regulatory barriers, the need for a minimum fuel octane standard, RVP parity and correcting fuel efficiency calculations.

“NCGA supports one national standard for vehicles. High-octane, low-carbon fuel can help harmonize federal and state standards and is a needed compromise solution on future standards,” Braun concluded his testimony.



Farm Bureau Calls for Evaluation of Endangered Species Protection

California Farm Bureau Federation President Jamie Johansson today urged Congress to improve the current culture of conflict that exemplifies current Endangered Species Act regulations.

Testifying on behalf of the American Farm Bureau Federation, the California olive and citrus grower told members of the House Committee on Natural Resources that an evaluation is needed of how the Endangered Species Act works, and how it can be improved to better work with farmers and other landowners.

“We all value protecting species from extinction.” Johansson said. “Our disagreements are not about the goal of species protection, but the best way to achieve that goal. We are not here to question the Act’s fundamental goal of striving to conserve species from extinction. This goal will not and should not change. What we grapple with today is not whether we should conserve species from extinction, but how we should conserve species from extinction.”

Johansson explained to the Committee that farmers and conservation groups understand that for species protection programs to work better, they must be improved for both species and people.

“What we know is that to actually take care of species on the land, we need to work with, not against, the people on the land,” Johansson said. “For this to happen, we must increase the opportunities for collaboration and decrease the opportunities for conflict. Currently, landowners view the ESA as a threat. The history of the ESA has generally shown landowners that having species or habitat (on their private land) creates a lot of risk and provides no real benefit. Given that half of listed species spend 80% of their lives on private land, this situation offers little opportunity for people or species.”