Tuesday December 4 Ag News

Ryan and Amy Musgrave Take Home Nebraska Farm Bureau’s Excellence in Agriculture Award

Ryan and Amy Musgrave of Ong were named the recipients of the 2018 Young Farmers and Ranchers Excellence in Agriculture Award. The award was given Dec. 4, at the Membership Recognition luncheon during the Nebraska Farm Bureau’s 101st Annual Convention held Dec. 2-4 in Kearney, Nebraska.

Ryan and Amy Musgrave, of Clay County Farm Bureau, were recognized for their ongoing involvement and commitment to agriculture. Candidates for the award are judged on their involvement in agriculture, leadership ability, and involvement and participation in Farm Bureau and other civic, service, and community organizations.

Ryan enlisted in the Navy after high school, served four years, and went on two deployments. After the Navy, he received a diploma in welding. He has an 11-year old son, Dax, who is happy to be on the farm as he is involved with 4-H. Having another generation on their farm is important to the couple. Amy attended Oklahoma State and studied animal science and agricultural communications, earning a bachelor’s degree with a double major and a minor in agricultural economics. She went on to get her master’s degree in agricultural economics from the University of Missouri. Aside from their full-time positions, they raise Angus and Simmental cattle, club lambs, and Boer goats.

Ryan works for a diversified grain and livestock operation and delivers wet distillers grains to various cattle operations in the Hastings area. Amy works as a statistician, assisting in the estimation and production of various United States Department of Agriculture (USDA) reports and works part-time at a local veterinary clinic as an office assistant.

“It is important to tell our agriculture story to anyone and everyone who will listen. I have been an Ag Pen Pal the last two years and we use our social media presence to highlight the treatment our animals receive. As a USDA employee, I can put out timely and accurate statistics to keep farmers and ranchers better informed of the current state of agriculture and markets. With our involvement in the local county fair with Ryan’s son, Dax, we are helping the next generation of farmers and ranchers get and stay involved in agriculture,” Amy said.

The Musgraves are involved in their Clay County Farm Bureau with Amy serving as president and Ryan as a board member. Within the next five years, their goals include being members of Nebraska Farm Bureau’s Young Farmers and Ranchers Committee, participating in the organizations Leadership Academy, making Clay County’s membership quota, and Ryan hopes to get on the Clay County Fair Board.

Farm Bureau members between the ages of 18 and 35 can apply for the Young Farmers and Ranchers Excellence in Agriculture award. As Nebraska winners, the Musgraves will receive $500 and an all-expenses paid trip to the 2019 American Farm Bureau Annual Convention in New Orleans, Louisiana in January to compete in the contest at the national level.



Jason Perdue, Takes Home Nebraska Farm Bureau’s Discussion Meet Competition

York County Farm Bureau member, Jason Perdue of York is the winner of the 2018 Young Farmers and Ranchers (YF&R) Discussion Meet competition. The award was announced Dec. 4, at the “We Love Our Members” luncheon during the Nebraska Farm Bureau’s 101st Annual Convention held Dec. 2-4 in Kearney.

Perdue received the top score of the contestants who advanced to the final round of the Discussion Meet contest. Rather than debating, contestants work to develop a solution to a problem being discussed, building on each other’s contributions. Competitors in the annual contest must be prepared to speak on several current agriculture-related topics; the selected question is announced a short time prior to the contest round. Perdue works for a family owned ag retail company that distributes crop protection products. He also raises corn and soybeans, has a small cattle herd, and is a contract poultry farmer. He serves as the York County Farm Bureau president and represents the At-Large position on the YF&R committee.

Perdue competed with three other contestants, Chris Niemann, Eleanor Aufdenkamp, and Brady Revels. Chris Niemann, is a fourth-generation farmer who grows corn, soybeans, and raises beef cattle on his family farm in Butler County near Dwight and serves on the Butler County Farm Bureau board. Eleanor Aufdenkamp is a second-year student at the Nebraska College of Technical Agriculture (NTCA) in Curtis, majoring in Agriculture Education. Her goals include becoming a high school agriculture teacher and FFA advisor. Aufdenkamp is heavily involved in her Collegiate Farm Bureau, livestock judging team, Collegiate Cattlemen, and NCTA Women in Ag. Brady Revels of Omaha is a Douglas County Farm Bureau board member and represents the Southeast Region on the YF&R Committee. He grew up on a family farm in Florida but relocated to Nebraska when his job as a sales representative for an animal health company moved him to Omaha. He helps coach several area FFA judging teams and volunteers with the Nebraska State Dairy Contest.

Farm Bureau members between the ages of 18 and 35 can participate in the Young Farmers and Ranchers Discussion Meet competition. As a Nebraska winner, Perdue will receive $500 and an all-expenses paid trip to the American Farm Bureau Annual Convention in New Orleans, Louisiana in January to compete in the contest at the national level. For more information, visit www.nefb.org/yfr.



Boyd County Farm Bureau Couple Take Home NEFB’s Young Farmer and Rancher Achievement Award

Kyle and Tiffany Lechtenberg of Boyd County Farm Bureau were honored as Nebraska Farm Bureau's 2018 Young Farmers and Ranchers Achievement in Agriculture Award winners at the Nebraska Farm Bureau 101st Annual Convention Tuesday, Dec. 4 at the Younes Conference Center in Kearney.

Farm Bureau members 18 to 35 years of age apply for the award. The Lechtenbergs were selected on the basis of performance in farm or ranch management, setting and achieving goals, overcoming obstacles, and service to the community and Farm Bureau.

The Lechtenberg farm is near Butte, where Kyle grew up. They have diversified their farm, raising row crops, alfalfa, cattle, and managing a trucking business. Tiffany grew up with an agriculture background in Broken Bow as her family owns and operates Arrow Seed Company. Kyle earned two degrees from the University of Nebraska-Lincoln in agricultural economics and animal science. Tiffany earned her Bachelor of Science Degree from the University of Nebraska Medical Center and now works as a registered nurse in O’Neill. The couple married in 2009.

The main profit center of the Lechtenberg’s Farm, which has been named NorthView Family Farms, LLC, is a commercial alfalfa operation where they provide a custom hay brokering, harvesting, and hay hauling business. Having diversity in the operation allows the Lechtenbergs to purchase and/or produce additional commodities to sell at premium rates.

Kyle started farming and ranching in 2002, when he started a cow herd with his brother. In 2003, two additional brothers and his parents joined all their cattle assets together and named it Lechtenberg Cattle Company. In college, he then began working at a hay company, named Eagle Alfalfa. The owner asked Kyle if he would be interested in buying his commercial alfalfa business, and in 2008 Kyle purchased the Eagle Alfalfa company and merged it with Lechtenberg Cattle Company. At this point the only remaining partners in the company were Kyle and his parents, with Tiffany joining the business partnership after their marriage. Then in 2012, they rebranded their farm and renamed it NorthView Family Farms, LLC.

“Renaming the company has allowed us to pursue other diverse enterprise opportunities. Since the rebranding and setting a clear vision for our future, our farm has expanded to employ five full-time, and two to four seasonal employees along with multiple independent contractors,” Kyle said.

Setting marketing goals is important to the success of NorthView Family Farms, LLC. They recently launched a website to add value to both customers and land owners alike. They have an active Facebook page and send out monthly newsletters, customer letters, and pride themselves in building strong customer relationships.

“We are always planning for the future in our operation and are excited to find new ways to serve those in our community. We work diligently to find new opportunities, analyze those options, and plan for future growth and improvements. There’s no better feeling than knowing the work we are doing literally puts food on the table for both us as produces and for consumers all over the world,” Tiffany said.

The Lechtenbergs balance busy schedules with farm life, volunteer activities, and with Nebraska Farm Bureau. The Lechtenbergs have four children, Joycin, twins Addison and Austin and their youngest son Jackson. Both Kyle and Tiffany serve as the North Central representatives on the Nebraska Farm Bureau Young Farmers and Ranchers Committee and they both serve on the Boyd County Farm Bureau board of directors. Tiffany is cofounder of a MOMS group at the Butte Community Bible Church. As winners of the Young Farmers and Ranchers Achievement Award, the Lechtenbergs will receive a $500 cash prize and an all-expense paid trip to the 2019 American Farm Bureau Annual Convention in New Orleans, Louisiana in January, where they will compete in the national contest.



Ricketts Announces Sherman County as Newest Nebraska Livestock Friendly County

Today, Governor Pete Ricketts designated Sherman County as Nebraska’s newest Livestock Friendly County (LFC).  Sherman County, located in central Nebraska, is the 49th county in the state to apply for, meet the requirements, and receive the LFC designation.  The Livestock Friendly County program is administered by the Nebraska Department of Agriculture (NDA).

“By requesting and receiving the state’s Livestock Friendly County designation, Sherman County is building an environment that encourages livestock growth and keeps Nebraska’s agriculture industry strong,” said Governor Ricketts.  “Sherman County’s LFC designation shows consumers and businesses around the world that the state is focused on agriculture and open to business.”

According to the U.S. Department of Agriculture, Sherman County had more than $114 million in agriculture receipts for the year 2012.  Livestock sales accounted for $36 million, or 32 percent of the total value, with cattle and calf production as the largest livestock segment in the county.  Crop production accounted for $78 million, or 68 percent of the total value.  Major crops raised in Sherman County include corn, soybeans, and forages/hay.

“Sherman County is home to more than 400 farms and many other businesses with direct ties to agriculture,” said NDA Director Steve Wellman.  “With the LFC designation, the people of Sherman County are making a strong statement of support for the livestock industry and all the benefits and growth that come with responsible livestock production.”

More than half of the counties in Nebraska have been designated Livestock Friendly.  The complete list is on NDA’s website at: www.nda.nebraska.gov/promotion/livestock_friendly/.



Seminar Addresses Multigenerational Farm Transitions

Transitioning a farm from one generation to the next is a complicated matter. Not only should business and financial issues be considered, but potentially difficult conversations about when a transition should be made and the direction of the farm must take place.

The Returning to the Farm Seminar, offered by the Beginning Farmer Center through Iowa State University Extension and Outreach, is designed to help farmers start these conversations. The seminar will be held on Jan. 10-11 and Feb. 8-9, 2019 at the Gateway Hotel and Conference Center in Ames. The four-day seminar provides an opportunity for families to begin developing a succession plan.

ISU Extension and Outreach’s Beginning Farmer Center works to help multigenerational farms understand what needs to be discussed and considered as a transition approaches.

“During the 24-year history of this seminar, attendees share two common themes,” said Dave Baker, director of the Beginning Farmer Center at Iowa State. “They are more prepared to actually start the conversation regarding transitioning the family farm and they are equipped with a progressive, seven-step system to use to prepare and put the transition in place.”

The seminar will cover topics including conflict resolution, goal setting, business analysis, estate planning, farm planning and farm management. It provides multigenerational farm families an opportunity to discuss how to live and work together as the farm business is passed from one generation to the next.

ISU Extension and Outreach specialists, as well as other industry experts, will present throughout the seminar.

Cost for the seminar is $450 for up to four participants. Each additional participant is $50. The registration fee is for all four days of the seminar and includes lunch each day and a Farm Savvy binder filled with worksheets, exercises and additional management resources. Part one of the seminar will be held Jan. 10-11 and the second part will take place Feb. 8-9.

Credit hours for ISU students
Iowa State students can earn up to two credit hours for attending the seminar with their family. There is no additional academic cost to students currently carrying a class load of 12 credits. Students and their family must attend all four days of the seminar and complete a business plan paper to receive credit.



CHS Reports Fiscal 2018 Net Income of $776 Million

CHS Inc.,the nation's leading farmer-owned cooperative and a global energy, grains and foods company, today reported net income of $775.9 million for the fiscal year that ended Aug. 31, 2018.

"Our fiscal 2018 results show the progress we are making on the priorities we set for CHS," said Jay Debertin, CHS president and chief executive officer. "Our year-over-year financial performance shows good improvement, our balance sheet is solid, and our relationships with cooperative owners are strong. The diverse CHS business platform allowed us to deliver improved earnings and enables us to return $150 million in cash patronage and equity redemptions to owners even as we navigated challenging market conditions."

Key financial highlights for the fiscal year that ended Aug. 31, 2018, include:
-   Net income of $775.9 million, an increase of $704 million from the previous fiscal year.
-   Consolidated revenues of $32.7 billion, a $646 million increase from the previous fiscal year.
-   Pretax income of $671.2 million, an increase of $781 million from fiscal 2017.
-   Energy gains driven by higher refinery margins and favorable crude oil discounts.
-   Disposal of assets resulted in cash proceeds of approximately $234.9 million and a pretax gain of approximately $131.8 million. The cash proceeds were used to optimize debt levels.
-   A tax benefit through revaluation of the company's U.S. net deferred tax liability as a result of the Tax Cuts and Jobs Act in 2017.

"As we move into fiscal 2019, we continue to build on the momentum and strong performance we started in fiscal 2018. This includes evolving and growing our core businesses in a changing marketplace and capitalizing on the value of this diverse organization to make CHS our owners' and customers' first choice," said Debertin. "We are focused on serving those who grow food to feed the world."

In October, CHS filed an 8-K with the Securities and Exchange Commission (SEC) announcing that it would restate its audited consolidated financial results for fiscal years 2015, 2016, 2017 and its unaudited consolidated financial results for the first three quarters of 2017 and 2018. The restatement was necessary to correct material misstatements related to valuation and accounting for certain rail freight contracts. The misstatements were discovered as a result of an investigation the company conducted through external counsel and under the oversight of the Audit Committee of its Board of Directors. Appropriate personnel actions were taken, based on the investigation's findings. All overstated non-cash values have been written off and appropriately reflected in the company's restated financial results. Additional information can be found in the form 10-K filed with the SEC.

Fiscal 2018 Segment Results: The following segments results have been reported for fiscal 2018:

ENERGY
The $391.0 million increase in Energy pretax earnings over fiscal 2017 reflects:
-    Improved market conditions in the refined fuels business due to higher refinery margins and favorable crude oil discounts, which drove higher pretax earnings. These benefits were partially offset by planned maintenance activities at the company's Laurel, Montana, refinery.
-    Gains of $65.9 million associated with the sale of the Council Bluffs pipeline and terminal and 34 Zip Trip stores located in the Pacific Northwest.
-    An impairment charge of $32.7 million recorded during fiscal 2017 related to the cancellation of a capital project, which did not recur in fiscal 2018.

AG
The $344.4 million increase in Ag pretax earnings over fiscal 2017 reflects:
-    Lower demand and uncertainties primarily associated with international trade, which resulted in decreased margins across multiple businesses in the Ag segment. These were partially offset by increased margins within the company's processing and food ingredients business.
-    Significant reserve and impairment charges recorded in fiscal 2017 that did not recur in fiscal 2018, the most significant of which related to the bankruptcy-like proceedings of a Brazilian trading partner.
-    Impairments of $26.3 million related to international investments that CHS has exited or is in the process of exiting.

NITROGEN PRODUCTION
The $9.0 million increase in Nitrogen Production pretax earnings versus fiscal 2017 reflects:
-    Higher pretax income attributed to increased sale prices of urea and UAN, which are produced and sold by CF Nitrogen.
-    A gain of $30.5 million in fiscal 2017 associated with an embedded derivative asset inherent in the agreement relating to CHS investment in CF Nitrogen. The gain was solely responsible for the income in Nitrogen Production in fiscal 2017, and there was no comparable gain in fiscal 2018.

The $36.9 million increase in Corporate and Other pretax earnings reflects:
    A gain of $58.2 million related to the sale of CHS Insurance, which was partially offset by lower earnings from the company's investments in Ventura Foods, LLC and Ardent Mills, LLC and CHS Capital and CHS Insurance (as a result of its sale).



RFA Releases Updated Brochure Allowing Consumers to Track Latest Flex Fuel Models

More than 24 million vehicles on U.S. roads today are flex fuel vehicles (FFV), capable of running on fuel blends containing up to 85 percent ethanol (E85). Can your vehicle use a cleaner, higher octane flex fuel? The Renewable Fuels Association has updated its annual FFV brochure to help consumers find out. The brochure compiles the FFV models available in the current model year (MY2019), as well as previous years going back as far as MY1998.

According to the brochure, for MY2019, Ford/Lincoln/Mercury led the pack with 12 FFV models available, followed by General Motors with 11 FFV models available and FCA (Chrysler/Dodge/Jeep) with five models. Additionally, automakers Mercedes-Benz offers two, while Nissan and Toyota each offer one. All of the data used in the brochure was collected directly from the automakers.

https://ethanolrfa.org/wp-content/uploads/2018/11/RFAConsumerChart_2019.pdf

“There are now approximately 4,500 retail stations throughout the country that offer E85 or other ethanol flex fuel blends, at least 500 more than last year and growing every week,” said RFA Vice President of Industry Relations Robert White. “This new brochure will help educate consumers about FFV availability, putting them in the driver’s seat when it comes to fuel choice. E85 is a cleaner, higher octane fuel and more consumers are gaining access to the fuel every year,” he added.

Consumers can locate E85 stations to fuel their FFVs at E85prices.com, and also view what pricing experiences other users have reported.



EPA, USDA Encourage Use of Market-based and Other Collaborative Approaches to Address Excess Nutrients

Today, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA) issued a letter to state and tribal co-regulators that encourages increased engagement and a reinvigoration of state, tribal and federal efforts to reduce excess nutrients in waterways, with a focus on market-based and other collaborative approaches.

“Thanks to the hard work of states, tribes and stakeholders, the EPA and the USDA have made significant progress reducing excess nutrients in some watersheds.  Now is the time to build on that success and leverage the market-based approaches that we know can lead to meaningful results across the country,” said David P. Ross, Assistant Administrator for EPA’s Office of Water.

The EPA and the USDA are committed to working with states, tribes and stakeholders to identify watersheds and basins where market-based approaches can supplement traditional regulatory programs to promote meaningful reductions in excess nutrients and improved water quality. This could include providing technical and financial support and participating in problem solving at the local level to explore approaches including water quality credit trading, public-private partnerships, pay-for success, supply chain programs, and more.

“Voluntary conservation works,” said Bill Northey, Under Secretary for USDA’s Farm Production and Conservation mission area. “Across the country, farmers are leading the way toward improved water quality by taking steps to decrease sedimentation and nutrient runoff from agricultural lands. But we know more can be done, and continue to look for partners to pursue innovative, market-based, and voluntary approaches that lead to cleaner water and a healthier agricultural sector.”

This renewed effort is part of a larger inter-Agency collaboration to better coordinate and focus federal resources on some of the nation’s most challenging water resource concerns, including addressing excess nutrients in waterways.



Soil Health Partnership Expands New Program to Grow Network and Data

Just in time for World Soil Day on December 5, the Soil Health Partnership announced it is expanding a pilot project to give more farmers access to the soil health network.

As the organization launches phase 2 of its pilot Associate Program, it will invite 75 farmers to enroll in 2019. This will enable more farmers to join SHP in its mission of using science and data to support farmers in adopting agricultural practices that improve the economic and environmental sustainability of the farm.

The economic component of soil health has taken on an increasing level of urgency during a difficult farm economy, said Shefali Mehta, executive director of the Soil Health Partnership.

“We’ve seen increasing demand from farmers who would like to join our network,” Mehta said. “Expanding the pilot phase of our Associate Program provides a great number of farmers with access to a scientific platform to evaluate soil health as part of a comprehensive management strategy.”

Joining the Associate Program during the pilot phase will give farmers access to no-cost soil health sampling and results. The program will provide data insights and reports on how making a change, like growing cover crops, impacts their soil.

“I strongly believe sustainability has to apply to farm economics, as well as the environment, and we’re seeing that economic need become increasingly critical,” Mehta said.

After enrolling 25 farms in the pilot program in 2018, phase 2 will bring the number of associate sites to 100. The SHP plans a full-scale launch of the Associate Program for 2020, when even more farmers can join.

A less-intensive version of the SHP’s 115 Full Partner sites enrolled in the long-term data project, Associate Program farmers will commit to a 2-year project enrollment. Yearly soil health testing will measure key metrics. Enrolled farmers will choose between the following three treatment options:
-    Cover crop vs. no cover crop
-    Tillage vs. less intrusive tillage, or no-till
-    Nutrient management (comparison of different nutrient sources)

The program will also help SHP include more cropping systems and geographies, as well as strengthen the breadth and depth of data, Mehta said. 

Farmers interested in learning more can visit the Soil Health Partnership website. https://www.soilhealthpartnership.org/



USDA Dairy Products October 2018 Production Highlights

Total cheese output (excluding cottage cheese) was 1.12 billion pounds, 3.0 percent above October 2017 and 6.1 percent above September 2018.  Italian type cheese production totaled 471 million pounds, 3.5 percent above October 2017 and 4.4 percent above September 2018.  American type cheese production totaled 433 million pounds, 0.7 percent above October 2017 and 3.9 percent above September 2018.  Butter production was 144 million pounds, 0.3 percent below October 2017 but 7.0 percent above September 2018.

Dry milk products (comparisons in percentage with October 2017)
Nonfat dry milk, human - 125 million pounds, down 13.6 percent.
Skim milk powder - 37.5 million pounds, up 44.5 percent.

Whey products (comparisons in percentage with October 2017)
Dry whey, total - 87.2 million pounds, up 8.0 percent.
Lactose, human and animal - 85.4 million pounds, down 8.3 percent.
Whey protein concentrate, total - 41.1 million pounds, up 0.9 percent.

Frozen products (comparisons in percentage with October 2017)
Ice cream, regular (hard) - 60.5 million gallons, up 6.9 percent.
Ice cream, lowfat (total) - 32.2 million gallons, down 6.7 percent.
Sherbet (hard) - 2.85 million gallons, up 12.2 percent.
Frozen yogurt (total) - 3.86 million gallons, down 7.1 percent.



General Session at Commodity Classic Promises to Inspire and Inform

The General Session at Commodity Classic is one of the most highly-rated experiences during the three-day farmer-driven event—and the 2019 version promises to be as well.

The 2019 Commodity Classic will be held Thursday, February 28 through Saturday, March 2 in Orlando, Fla.

Keynote speaker for Friday’s General Session will be Christine Cashen, known worldwide for her ability to entertain and energize audiences.  Cashen will deliver a fast-paced, hilarious program on handling conflict and reducing stress—as well as tips on life, love, work and happiness.

U.S. Secretary of Agriculture Sonny Perdue has also been invited to speak.

The session will also include the nation’s commodity association leaders who will discuss the hottest issues facing the nation’s corn, soybean, wheat and sorghum producers.  Additionally, the Association of Equipment Manufacturers will provide an update on their industry.

“The General Session is where the true spirit of Commodity Classic comes through,” said Wade Cowan, a Texas soybean farmer and co-chair of the 2019 Commodity Classic. “There is a strong sense of common purpose with a combination of inspiration, information and insight.  You’re sure to leave the General Session with a smile on your face and your spirits soaring!”

Established in 1996, Commodity Classic is America’s largest farmer-led, farmer-focused agricultural and educational experience.  Commodity Classic is unlike any other agriculture event, featuring a robust schedule of educational sessions, a huge trade show featuring the latest technology, equipment and innovation, top-notch entertainment, inspiring speakers and the opportunity to network with thousands of farmers from across the nation.

Registration and housing for the 2019 Commodity Classic are now open. To register, reserve hotel rooms and sign up for email updates, visit CommodityClassic.com.  Early bird discounts on registration end January 10, 2019.