Friday October 12 Ag News

Nebraska Beef Industry Scholars Summit

The senior class of the Nebraska Beef Industry Scholars and Nebraska Cattlemen are excited to release details about the line-up of topics and speakers for the 2018 Beef Summit. It will be held on November 15th at the Animal Science Complex on UNL’s East Campus in Lincoln, NE. The seminar will begin with registration at 8:30 a.m. and conclude at 4:00 p.m. A variety of topics will be discussed at this year’s event.

John Hinners from the United States Meat Export Federation will discuss national trade. Hinners leads trade groups traveling in international markets, promoting U.S. red meat exports.

Brandon Nuttlemen, Merck Animal Health, will present his session, Progressive Technology to Improve Animal Health. Nuttleman specializes in beef cattle technical services.He earned a PhD in Ruminant Nutrition at UNL.

For the first time in Summit history, a breakout session will be offered! The class is excited to offer differing, yet relevant sessions to meet the interests of attendees. One option in the breakout session is Succession Planning and Startup in a Family Operation, presented by Matt Gunderson. Gunderson is the assistant vice president of Client Relations with Farmers National Company. He is passionate about helping producers prepare for the future of their operation through succession planning. Another option is Livestock Traceability Impacts on Producers, presented by IMI Global, who specializes in verification and certification programs for the livestock industry. Their goal is to enable producers, feeders, growers, packers, and processors to meet the ever-changing needs of both domestic and international markets.

A knowledgeable pair of speakers is collaborating on a session titled, Genomically Based Decision Making. Kenny Stauffer is the director of beef genomics at Neogen, which is one of two commercial genetic testing companies in the United States. Shane Bedwell, Director of Breed Improvement for the American Hereford Association, is the other half of the duo. Bedwell’s duties at AHA include heading the performance department, and brings visual evaluation experience as well.

As market volatility is always on the front line, Randy Blach from CattleFax will share his thoughts in a session of Managing Risk in Volatile Markets. Blach is actively involved in a cow/calf, stocker, and finishing program in Colorado, and has been the CEO of CattleFax since 2001. His technical knowledge and experience as a keynote speaker combine for a worthwhile session.

Lab cultured meat will be the topic of the panel discussion to conclude the Summit. Since this topic has been making waves in the last year, the class decided to bring forces together from different aspects of the beef industry. Representatives from NCBA, a UNL meat scientist, and Memphis Meats.

Space is limited, so please submit your registration form by November 8th to secure your place. https://nebraskacattlemen.org/wp-content/uploads/2018/09/nbis-beef-summit-registration-form-2018.pdf.  The cost of this program is $50 and will cover lunch, speaker costs and other expenses for the event. After receiving your completed registration, we will send you additional event information. Parking permits are needed for lots on campus and will be provided at registration. They look forward to seeing you on November 15th.



NE Dairy Extension Resources Available

Did you know Nebraska Dairy Extension has a number of online publications for a number of topics you can use on your farm? Below are just a few of the online publications with links to the publications they offer....
    Water Quality and Requirements for Dairy Cattle
    Annual Cool-Season Forages for Late-Fall or Early-Spring Double-Crop
    English to Spanish: A guide for communications to livestock operations
    Feeding to Maximize Milk Protein and Fat Yields
    Milk Urea Nitrogen Testing
    Inbreeding: Effect on Milk Production Reduction
    Sampling Feed for Analyses
    How to Interpret the DHIA-520 Somatic Cell Count Profile
    Developing Dairy Heifer Rearing Expenses
    How to Body Condition Score Dairy Animals
    Impact of feeding distillers grains on nutrient management planning on dairy farms
    Newborn Calves and Colostrum (Spanish resource)
    Sampling Feed for Analyses (Spanish resource)

Additional resources can be found on our website: Dairy.unl.edu.  If there is a resource you would like and cannot find, please contact Kim Clark at kimclark@unl.edu or 402-472-6065.



$55,000 Awarded through Nebraska FFA Foundation Local Chapter Grant Program

Eleven Nebraska FFA chapters were awarded funds through the Nebraska FFA Foundation local chapter grant program.

This program, in its second year, supports Nebraska agricultural education classrooms, FFA programs and individual student entrepreneurship Supervised Agricultural Experiences. Funds are provided by the Nebraska FFA Foundation and its general fund donors. Around 30 applications were submitted requesting over $150,000.

The 11 grant recipients are the following:
-    Valentine agricultural education program received $10,000 for a torchmate plasma table.
-    Rock County FFA received $3,850 for their school-based enterprise called “On-the-go Gelato.”
-    Ogallala FFA received $3,500 for their school-based enterprise for a bee cooperative.
-    Wauneta-Palisade agricultural education program received $9,363 for updating their shop equipment.
-    Amherst agricultural education program received $8,000 for a new greenhouse.
-    McCook agricultural education program received $5,000 for tower gardens.
-    Lakeview FFA received $4,500 for updating and fixing their greenhouse.
-    McPherson County agricultural education program received $4,139 for a CNC router.
-    Tri-County agricultural education program received $2,500 for updating their greenhouse equipment.
-    Norfolk agricultural education program received $500 for their “Grow, Show, Know” fish project.
-    High Plains agricultural education program received $3,750 for an animal learning lab shelter.

“Our board worked many years to develop sustainable funding to provide this program. We all know that there were many programs in need of more financial support to develop career-ready students in agriculture. Awarding $55,000 will give students in these schools some of the resources necessary to reach their full potential,” said Stacey Agnew, Nebraska FFA Foundation Executive Director.

Applications for the 2019 Local Chapter Grant Program will open in April. Learn more at neffafoundation.org.



Agricultural Education Teachers Receive Awards

The Nebraska Farm Bureau Foundation works to keep agricultural educators in Nebraska classrooms by awarding 13 Nebraska agricultural education teachers $14,000.

“All 13 teachers make a difference in their classrooms and their communities,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation. “We’re proud to support the future of agriculture and the growth of agricultural education and FFA in Nebraska, and we congratulate this year’s winners,” she continued.

Recipients are all agricultural education teachers in their first through fifth year of teaching. Teachers are eligible for increasing awards each year. As the teachers’ impact grows in the classroom, in their FFA chapters, and in their communities each year, the Nebraska Farm Bureau Foundation aims to recognize and support their contributions.

The 13 recipients of the scholarships are Victoria Armstrong, Maywood Public Schools; Jesse Bower, Friend Public School; Aubrie Brown, Elba Public Schools; Evey Choat, Laurel-Concord-Coleridge Public School; Hannah Horak, Shelton High School; Brian Johnson, Litchfield Public Schools; Rebekah Kraeger, Cozad Community Schools; Reed Kraeger, Elwood Public Schools; Justin Nolette, Cody-Kilgore Unified Schools; Lacey Peterson, Riverside Public Schools; Tyler Schindler, Omaha Bryan High School; Morgan Schwartz, Stanton Community Schools; Nicole Sorensen, Minatare High School.



Iowa farmers continue to efficiently raise livestock and grain despite market challenges

For the second time in Iowa history, corn yields broke 200 bushels per acre, yet the money it costs Iowa farmers to grow those crops, exceeds the revenue they get from selling them.  These facts and more are detailed in the 2018 Iowa Agricultural Statistics, a 112-page comprehensive analysis compiled by the Iowa office of the National Agricultural Statistics Services (NASS) and released by the Iowa Farm Bureau Federation (IFBF).

According to the 2018 Iowa Ag Statistics book, the 2016-17 marketing year average price for corn was $3.30 per bushel, down 6 percent from the previous year. However, it costs farmers $3.48 per bushel to grow that corn. Although soybean prices were up 5 percent to $9.34 per bushel, it is still below the production price of $9.46 per bushel. Because the gap between the cash price of grain and the futures price has been wide, Iowa farms saw a record in 2017 of on-farm storage capacity. IFBF Director of Research and Commodity Services Dave Miller says many farmers are opting to store their grain on farm instead of at their local cooperative to cut storage costs until price margins are more certain. They are also trying to tackle grain farming’s biggest expenses—land and seed prices.

With more than half of Iowa’s farmland being cash rented, many farmers are trying to work out fair prices with their landlords. Average cash rent prices in Iowa dropped from $230 an acre to $219 from 2017 to 2018. Miller also says farmers are cutting costs by selecting seed varieties with less traits. For example, farmers may forgo purchasing seed with an added trait like the insecticide Bt. In 2009, 14 percent of farmers purchased Bt corn. In 2018, only 3 percent did.

The Iowa Ag Statistics book also shows that Iowa continues to be a national leader in pig farming with 22.8 million hogs in the state. “Pig numbers continue to increase every year by 3 to 5 percent which is being supported by enlarged cold storage capacity and expanded employee shifts at Iowa packing plants,” says Miller. From 2016 to 2017, Iowa’s plants produced an additional 174 million pounds of red meat which includes beef, mutton and pork. Iowa also continues to be the number one egg producer in the nation. Bouncing back from the Avian Influenza outbreak, 2017 saw an increase of 2.35 million eggs from 2016.

“While we continue to see uncertainty in the agricultural markets and continued negotiations on trade agreements, Iowa’s farmers continue to forge on ahead,” says Miller. “Despite challenges, our Farm Bureau members are finding ways to improve their land through conservation efforts and add value to their farms with livestock.”  

The stats book can be ordered, for a cost of $12, from the Marketing and Communications Division, Iowa Farm Bureau, 5400 University Avenue, West Des Moines, Iowa 50266.



Apply by Nov. 1 to Serve on the National Pork Checkoff Board of Directors

The Pork Checkoff’s board of directors is accepting applications through Nov. 1 to fill five three-year terms. State pork producer associations, farm organizations or anyone who pays into the Pork Checkoff, which includes pig farmers and pork importers, may submit an application.

“Serving on the National Pork Board is a great opportunity for producers to support the pork industry while helping to plan for a successful future,” said Friend, Nebraska, producer Terry O’Neel, who is the past Pork Board president and chair of the Nominating Committee. “Not only have I been able to serve producers, I also have learned from the many different producers that we have in this industry.”

Pork Act Delegates must rank a minimum of 10 candidates to send to U.S. Secretary of Agriculture Sonny Perdue for approval. The board consists of 15 members, each serving a maximum of two three-year terms. The Pork Act requires that no fewer than 12 states be represented.

 The 15 positions on the Checkoff board are held by pork producers or importers who volunteer their time.  Any pork producer or importer who has paid all Checkoff assessments due or is a representative of a producer or company that produces hogs and/or pigs is eligible to serve.

The application deadline is Nov. 1, with interviews for each candidate to be held in Des Moines Dec. 5 to 6. Please direct application requests and questions to Denise Yaske at DYaske@pork.org.



USDA Issues Farm Safety Net and Conservation Payments

Agriculture Secretary Sonny Perdue today announced that the United State Department of Agriculture (USDA) continues to invest in rural America with more than $4.8 billion in payments being made, starting this month, to agricultural producers through the Farm Service Agency’s Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC) and Conservation Reserve (CRP) programs. Approximately $3 billion in payments will be made under the ARC and PLC programs for the 2017 crop year, and approximately $1.8 billion in annual rental payments under CRP for 2018.

“Despite a temporary lapse of Farm Bill authorities, farmers and ranchers can rest assured that USDA continues to work within the letter of the law to deliver much needed farm safety net, conservation, disaster recovery, and trade assistance program payments,” said Perdue.

The ARC and PLC programs were authorized by the 2014 Farm Bill and make up a portion of the agricultural safety net to producers when they experience a substantial drop in revenue or prices for their covered commodities.

“These program payments are mandated by Congress, but the Department has taken measures to ensure we meet our deadlines and get capital in the hands of those folks that need it most. Unfortunately, 2018 has proven to be another tough year for producers across the Nation, making the timeliness even more critical. Our resilient farmers, ranchers, and producers are battling more hurricanes, wildfires, droughts, floods, and even lava flows,” said Perdue.

PLC payments have triggered for 2017 barley, canola, corn, grain sorghum, wheat and other crops. In the next few months payments will be triggered for rice, chickpeas, sunflower seeds, flaxseed, mustard seed, rapeseed, safflower, crambe, and sesame seed. Producers with bases enrolled in ARC for 2017 crops can visit www.fsa.usda.gov/arc-plc for updated crop yields, prices, revenue and payment rates. The estimated payments are before application of sequestration and other reductions and limits, including adjusted gross income limits and payment limitations.

Also, this week, USDA will begin issuing 2018 CRP payments to over 362,000 landowners to support voluntary conservation efforts on private lands. “CRP has long been a useful tool for the Department to encourage farmers to take that environmentally-sensitive, more unproductive land, out of production and build-up their natural resource base. These CRP payments are meant to help encourage land stewardship and help support an operation’s bottom line,” said Perdue.



NPPC STRESSES NEED FOR REVISED FEDERAL TRUCKING RULES FOR LIVESTOCK HAULERS

In comments submitted to the U.S. Department of Transportation (DOT) this week, the National Pork Producers Council supported revisions to existing federal trucking regulations that allow livestock haulers to comply with the rules while maintaining the pork industry’s high standards for animal welfare.  Specifically, NPPC asked DOT’s Federal Motor Carrier Safety Administration (FMCSA) to change the Hours of Service (HOS) rules, which limit commercial truckers to 11 hours of driving time and 14 consecutive hours of on-duty time in any 24-hour period. Once drivers reach either limit, they must wait 10 hours before driving again. NPPC supports:
-    Expanding the driving-time limit for livestock haulers from 11 hours to 14 hours.
-    Adding an exemption from the driving-time limit for “adverse driving conditions,” which should be defined to include not only incidences of rain, snow, ice and traffic disruptions but also excessive temperatures that would stress animals and prevent trucks from stopping.
-    Allowing livestock haulers in trucks with sleeper berths to break up the required 10-hour rest period into three separate periods provided that at least one is a minimum of six hours.

NPPC also asked the transportation agency to streamline the process for restoring “satisfactory” safety ratings for livestock haulers who are otherwise in compliance with the HOS rules’ safety and paperwork requirements. Often as a result of caring for animals rather than strictly adhering to the HOS regulations, some drivers have had their safety ratings downgraded from “satisfactory” to “conditional.” That has reduced the pool of available drivers and significantly increased barriers for livestock haulers to remain in business



Green Plains Enters into Agreement to Sell Three Ethanol Plants to Valero Renewable Fuels

Green Plains Inc. (NASDAQ:GPRE) announced today that it has entered into an asset purchase agreement with Valero Renewable Fuels Company LLC to sell three of its ethanol plants located in Lakota, Iowa, Bluffton, Ind., and Riga, Mich. for $300 million in cash, plus approximately $28 million of working capital also paid in cash. The transaction involves 280 million gallons of nameplate capacity, or approximately 20% of the Company’s reported ethanol production capacity.

“The sale of these three ethanol plants demonstrates our commitment to strengthening our balance sheet and unlocking value for our shareholders,” said Todd Becker, president and chief executive officer of Green Plains. “As we stated in May, when we outlined our Portfolio Optimization Program, we would divest assets that enable us to execute our long-term strategic objectives. This sale is the first step towards our strategic objectives to prove the value of our assets and to significantly reduce or eliminate term debt by the end of 2018. We will continue with our optimization plan and anticipate communicating additional transactions in the near future.”

The deal creates a shift among the nation's top five producers, as Valero now moves up the list, past Green Plains and virtually tied with Archer Daniels Midland at No. 2. Poet is the nation's top producer at about 2 billion gallons.  Valero will have a production capacity of between 1.6 billion and 1.7 billion gallons at 14 plants. Green Plains' capacity falls to just below 1.2 billion gallons at 11 plants.

Green Plains Inc. also entered into an asset purchase agreement with Green Plains Partners LP (“Partnership”) to acquire the storage and transportation assets and the assignment of railcar leases associated with the Lakota, Bluffton and Riga ethanol plants. Green Plains Inc. will exchange approximately 8.9 million units it owns of the Partnership, valued at $120.9 million, to the Partnership for the storage and transportation assets and railcar leases. In addition, Green Plains Inc. and the Partnership agreed to extend the storage and throughput services agreement an additional three years to June 30, 2028.

“Exchanging a portion of Green Plains Inc.’s ownership in the Partnership to acquire the three ethanol facilities’ storage assets from Green Plains Partners is highly beneficial to both parties. For Green Plains Inc., it maximizes the cash proceeds from the sale of the three ethanol facilities and reduces the associated minimum volume commitment throughput of ethanol production. For Green Plains Partners, it lowers the distributable cash flow needs, enabling us to maintain the current annual distribution, making for an accretive transaction for the Partnership unitholders,” Becker stated.

The quarterly minimum volume commitment associated with the storage and throughput services agreement will be 235.7 million gallons or, approximately 80% of the new Green Plains Inc. annual production capacity of 1.183 billion gallons.

Both transactions are anticipated to close during the fourth quarter of 2018. These purchase agreements are subject to customary closing conditions, regulatory approvals and contain normal and customary representations, warranties, and indemnification obligations.



CoBank: Rising Output Compressing Agricultural Margins

Strong growth in both the U.S. and global economies will support increased demand in domestic and export markets through the end of the year. However, U.S. competitiveness is currently constrained by trade uncertainties and the elevated value of the U.S. dollar, further placing pressure on the agricultural economy as output in most industries rises.

The latest Quarterly Rural Economic Review from CoBank’s Knowledge Exchange Division indicates that any significant farm price improvements over last year’s prices will be limited, particularly with record U.S. yields for many of the major crop commodities adding to available supply levels. Meanwhile, the animal protein and dairy sectors continue to benefit from strong domestic demand and the promise of better access to Mexico and Canada, but will need more export market growth to absorb their current pace of output and expansion.

“Agricultural markets are being squeezed as prices remain weak,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange Division. “While recently negotiated trade deals show some upside for agriculture, global demand for output from the U.S. agriculture sector is being outpaced by current U.S. production.”

CoBank quarterly economic reviews provide updates and market outlooks covering several topics and industries, including: Global and U.S. Economic Environment; U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Other Crops; Specialty Crops; and Rural Infrastructure Industries.

Key Factors and Findings
The CoBank report reveals that the escalating trade war with China is the leading risk for U.S. agriculture and that retaliatory actions taken by China and other trading partners have raised concerns of long lasting effects on agricultural supply chains. However, U.S. Department of Agriculture assistance to farmers and ranchers suffering hardship may have a modest impact on farm financial conditions.

Other key findings include:
-    Sustained growth in emerging markets will support increasing demand for higher value products such as animal protein, dairy and specialty crops.
-    With the trade environment in flux, the U.S. economy remains on strong footing with tax reform and increased government spending providing significant fiscal stimulus.
-    In specific commodities, 2019 could see record yields for U.S. corn, soybeans and cotton, which is boosting supplies and limiting price improvement. For wheat, concerns about production shortfalls in the EU and FSU regions have pushed prices higher.
-    The animal protein sector has benefited from low commodity prices and excess supply, but trade concerns continue to weigh on beef, poultry and pork markets. However, domestic consumer demand remains stout for animal protein, although pork is experiencing the biggest jolt caused by trade disputes and oversupply.
-    Although the dairy markets have been weak, they continue to show modest signs of improvement through the third quarter of 2018, though producer distress remains, forcing some to exit the business.
-    The Federal Communications Commission announced the results of the CAF II auction in August, which awarded $1.488 billion in funding over the next 10 years to expand rural broadband access in unserved areas across 45 states.