Wednesday December 12 Ag News

New Software Tool Now Adds Payroll Functionality to Farm and Ranch Management

Magnify, a new ag management software tool from Farm Credit Services of America (FCSAmerica), now includes OnPay to give farming and ranching operations a full-service payroll solution that meets their business needs.

FCSAmerica, a financial cooperative, and OnPay, a payroll software provider for small and growing businesses, bring their respective agricultural expertise to a partnership that enhances Magnify as an all-in-one tool for managing the business side of a farm or ranch. Among OnPay’s features are payroll applications for seasonal labor, the ability to process different minimum wage rates for ag workers and the filing of tax forms, including federal form 943 for agricultural employees.

“OnPay’s experience with agricultural payroll gives the company a unique understanding of the solutions that our customers need to run their businesses and keep their employees happy,” said Tony Jesina, FCSAmerica’s senior vice president overseeing Magnify.  “We are confident that OnPay will be attractive to customers who want an affordable, efficient and easy-to-use payroll option that fully integrates with Magnify.”

FCSAmerica launched Magnify in 2018 as a combination accounting and managerial software system aimed at improving profitability and decision-making through a real-time view of an operation’s overall financial health. Automated recordkeeping and accounting functions, for example, allow producers and their advisors to more easily track budgets and cash flows. The managerial reporting side pairs underlying accounting data with production and inventory information to produce insights and analyses, including a producer’s true, all-in cost of production and breakeven price.

As a significant cost to ag businesses, payroll data is an important addition to the financial picture Magnify provides. It combines payroll data with other financials to provide ag businesses with all the information they need to make informed decisions.

“This partnership gives farmers and ranchers something they’ve needed for a long time,” said Mark McKee, OnPay’s president and chief operations officer. “Agricultural businesses use complex technology to increase yield and manage production. We’re excited to help make the back office more intelligent, too. Now owners and managers can save time on payroll, plus get a much clearer picture of their financials.”

Magnify, developed in partnership with software firms Xero and Figured, is available exclusively through FCSAmerica. The financial cooperative, in association with Frontier Farm Credit, is initially offering Magnify to its customer-owners in Iowa, Nebraska, South Dakota, Wyoming and eastern Kansas.



Farmers and Ranchers Gather to Support Nebraska Farm Bureau Foundation

The Nebraska Farm Bureau Foundation held its third annual Grower’s Gala on Dec. 3, during the 2018 Nebraska Farm Bureau Annual Convention. The evening was filled with dinner, a live auction, and entertainment by dueling pianos with Fun Pianos!

The live auction featured a DJI MAVIC PRO Drone, Case IH 9000-watt generator, once-in-a-lifetime flight in an open-cockpit Historic WWII plane, dinner with the governor, and travel and entertainment packages. Lancaster County Farm Bureau sponsored the third annual “deck of cards” raffle, and Shane Greving of Merrick County Farm Bureau was the lucky winner of a Beretta A400 Lite Shotgun and Sig Sauer Pistol.

“I am grateful to the 300 people who attended the Grower’s Gala to support the next steps in agricultural literacy in Nebraska,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation. “The money raised from the event will enable us to demonstrate the importance of agriculture to a greater number of students and consumers across Nebraska.”

Thanks to the generosity of donor Charles W. Herbster of Falls City, Neb., a matching gift doubled the first $15,000 raised at the Grower’s Gala. Totals for the evening topped $50,000 to support the Foundation’s programs including Nebraska Agriculture in the Classroom, the Ag Pen Pal program, scholarships and awards, and consumer engagement efforts.

“Despite some tricky weather, we had a good crowd, and those who braved the cold were treated to a wonderful meal and a fun night of singing and dancing along with the dueling pianos. It was great to see Nebraska farmers and ranchers take a moment to celebrate their way of life while giving back to make sure the next generation also has opportunities for success,” said Schafer.

Special thanks to auctioneer Rick Shoemaker of Huss Livestock Market, LLC, and the following live auction and raffle donors: Farm Bureau Counties: Blaine, Box Butte, Brown, Buffalo, Cherry, Colfax, Custer, Douglas, Garfield, Hall, Hitchcock, Holt, Keya Paha, Lancaster, Lincoln, Loup, McPherson, Rock, Thomas, and Wheeler. Nebraska Farm Bureau member benefit partners: AAA of Nebraska, Case IH Agriculture, Certified Piedmontese, Choice Hotels, Farm Bureau Bank, Grainger Industrial Supply, Great Wolf Lodge, TripBeat, and Showboat Branson Belle. As well as these additional supporters: 21st Century Equipment, Applebee’s, Kevin and Penny Burch, Courtyard Marriott-Lincoln Downtown/Haymarket, Jordan Dux, Friends of the Foundation, Duncan Aviation, Governor Pete Ricketts, Graduate Hotel-Lincoln, Hilton Garden Inn-Lincoln Downtown/Haymarket, Terry and Shelley Keebler, Lied Center for Performing Arts, Lincoln Marriott Cornhusker Hotel, Lincoln Residence Inn, Lincoln Saltdogs, Landmark Implement, Livewire Fence Supply, Legends Restaurant, Lukas Fricke, Steve and Elma Nelson, Mellow Mushroom, Keith and Doris Olsen, Pepper Jax Grill, Bruce Rieker, Scotts Bluff Country Club, and Village Inn.



New JBS Violations Highlight Weak Enforcement of Packers & Stockyards Act

Today, Organization for Competitive Markets received information indicating that the U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) will be releasing the terms of a settlement agreement with JBS Swift over its gross mishandling of beef carcasses at its Grand Island, Nebraska facility, its largest beef processing plant in the U.S. This unconscionable practice led to probable underpayments to cattle producers in violation of the Packers & Stockyards Act.

In a soon to be released press statement, AMS states, “Beginning sometime prior to December 14, 2017, and continuing until on or about March 31, 2018, JBS Swift failed to properly record the weights, grades, and prices of carcasses accurately on accountings issued to sellers. The practice of failing to maintain the identify of beef carcasses purchased on a carcass weight basis at its Grand Island beef plant resulted in paying livestock sellers on inaccurate hot carcass weights and prices and is in violation of section of the Act and regulations.”

About a year ago, Nebraska cattle producer Steve Krajicek raised concerns with AMS over mishandling of his cattle. “Our yields have been lower than they are at other packing plants. Based the AMS findings in this case, I wouldn’t even know if JBS was paying me for my own cattle.”

Too often, smaller producers are required to sell their cattle on carcass weight, forcing them to carry all the risk of shipment including tissue shrinkage and injury to the animal, and then unreasonably having to trust that JBS weighs and grades the animal correctly. Larger producers are given the opportunity to sell on live weight at the point of sale, skirting these risks. The result is small producers are abused by the large packer as set out in this case by AMS.

This settlement follows a similar settlement agreement AMS reached with JBS in June of 2018 for failing to maintain its carcass monorail scales at its Cactus, Texas and Greeley, Colorado facilities resulting in cattle producers being inaccurately paid for their cattle.

In the June 2018 consent decision, JBS paid a $29,000 civil penalty. In this most recent consent decision, JBS has agreed to a $50,000 civil penalty. Unfortunately, these civil penalties dim in comparison with the amount of dollars stolen from cattle producers in a pattern of repeated violations of the Packers & Stockyards Act.

“It is like a thief stealing $5.00 and only being fined $1.00. Where is the incentive to stop stealing?” exclaimed Joe Maxwell, Executive Director of the Organization for Competitive Markets.

With USDA Secretary Sonny Perdue’s recent elimination of the Grain, Inspection, Packers & Stockyards Administration that was tasked with P&S Act enforcement, understaffed and under-resourced enforcers are ill-equipped to take on a global Goliath such as JBS. Further, Perdue’s withdrawal of the Farmer Fair Practices Rules leaves cattle producers with no recourse to recover their losses. OCM is currently in litigation against USDA in an effort to restore those rules.

“It is a national tragedy that farmers and ranchers are subjected to a marketplace where they are at the mercy of the packers who clearly have no moral compulsion to treat them fairly and a USDA Secretary that lets them get away with it. We’re in danger of losing our whole cattle industry in this situation,” concluded Maxwell.



ISU Land Value Survey shows 0.8 percent decrease statewide since 2017

After a reprieve in 2017, commodity prices, interest rates and trade disruptions drove Iowa farmland values down for the fourth time in five years. The average statewide value of an acre of farmland is now estimated to be $7,264. This represents a decrease of 0.8 percent, or $62 per acre, from the 2017 estimate.

Land values were determined by the 2018 Iowa State University Land Value Survey, which was conducted in November by the Center for Agricultural and Rural Development at Iowa State University and Iowa State University Extension and Outreach. Results from the survey are consistent with results by the Federal Reserve Bank of Chicago, the Realtors Land Institute and the U.S. Department of Agriculture. Wendong Zhang, assistant professor and extension economist at Iowa State University, led the annual survey.

The $7,264 per acre estimate, and 0.8 percent decrease in value, represents a statewide average of low-, medium- and high-quality farmland. The survey also reports values for each land quality type, crop reporting district (district hereafter) and all 99 counties individually.

Farmland values hit a historic peak of $8,716 per acre in 2013; however, they immediately declined by 8.9 percent, 3.9 percent and 5.9 percent, respectively, the following three years. Farmland owners received a small reprieve in 2017 when the statewide average increased 2.0 percent. While modest when compared to 2014, 2015 and 2016, 2018 marks the fourth time in five years that statewide average farmland values have declined. In nominal value, the statewide average for an acre of farmland has fallen 17 percent since 2013.

Commodity prices were one of the biggest factors driving down farmland values this year, according to Zhang.

“Lower commodity prices, in part due to the recent trade disruptions, were cited as the most significant negative factor driving down land values,” Zhang said. He also noted that despite the downturns, farmers don’t need to worry about a sudden collapse of the U.S. agricultural sector similar to the 1980s farm crisis.

“Limited land supply and strong demand by farmers still seems to hold up the land market,” Zhang said. “For five consecutive years, survey respondents have reported fewer sales than the year before, and the ag economy is still robust with 82 percent of the land in Iowa fully paid for.”

Factors Influencing Land Values
The most common positive factors influencing land prices noted by survey respondents were limited land supply, strong yields and low interest rates. The most commonly cited negative influences were lower commodity prices, higher long-term interest rates and recent tariffs on U.S. soybeans, pork and other agricultural products.

The ISU land value survey was initiated in 1941, the first in the nation, and is sponsored annually by Iowa State University. The survey is typically conducted every November and the results are released mid-December. Only the state average and the district averages are based directly on the Iowa State survey data. The county estimates are derived using a procedure that combines the Iowa State survey results with data from the U.S. Census of Agriculture.

The ISU Land Value Survey is based on reports by agricultural professionals knowledgeable of land market conditions such as appraisers, farm managers and agricultural lenders, and actual land sales. It is intended to provide information on general land value trends, geographical land price relationships and factors influencing the Iowa land market. The 2018 survey is based on 792 usable responses from 605 agricultural professionals. Sixty-two percent of the 605 respondents answered the survey online.



Smith Commends Passage of 2018 Farm Bill Conference Report

Congressman Adrian Smith (R-NE) delivered the following remarks on the floor of the House of Representatives shortly before voting in favor of the 2018 Farm Bill Conference Report, which passed by a vote of 369-47.

Mr. Speaker – I rise today to express my strong support for this farm bill conference report.

-Given the ongoing challenges in the agricultural economy, it is very important our producers have all the certainty we can provide as they make their Spring planting decisions.

-I held a series of listening sessions around Nebraska’s Third District – our nation’s number one producing district for agriculture - last year to hear producers’ thoughts about the farm bill.

-The number one item on the farmer’s minds was the continuation of a strong crop insurance program. This farm bill accomplishes the objective.

-It also recognizes the challenges and threats facing our livestock producers by creating a disease prevention program and vaccine bank to help contain any potential future outbreak of foot and mouth disease in our country.

-This farm bill and continued positive progress on trade will go a long way toward increasing their piece of mind.

-I encourage my colleagues to join me in supporting this important piece of legislation and I appreciate the support of the Administration in bringing this legislation to a successful conclusion.

The 2018 Farm Bill Conference Report will now go to President Trump to be signed into law after having been approved by the U.S. Senate on Tuesday, December 11. Nebraska’s Third District leads the nation in agricultural production.



Rep. Bacon Says Farm Bill Will Help Grow Nebraska’s Economy

Congressman Don Bacon (NE-02) today joined his colleagues to pass the 2018 Farm Bill, which delivers key wins for Nebraskan farmers, ranchers, and consumers, as well as certainty and stability to the economies of Ag communities like Nebraska.

Four areas of concern to Rep. Bacon, addressed in the 2018 Farm Bill, include: trade promotion, a Foot-and-Mouth Disease (FMD) Vaccine Bank, an affordable crop insurance program, and continued research funding for universities such as the University of Nebraska. 

The 2018 Farm Bill provides mandatory funding to the Foreign Market Development program, the Market Access Program, and other trade initiatives designed to promote U.S. agricultural exports, while streamlining the four existing trade promotion programs under one umbrella, the Agricultural Trade Promotion and Facilitation.

“These measures will help Nebraska’s number one economy thrive,” said Rep. Bacon. “Our farmers, ranchers, financial services sector, meatpacking plants, etc. all rely on fair trade programs.”

Other issues addressed helps the ag economy of Nebraska thrive.

“Speaking with many members of Nebraska’s agricultural community, l learned a large concern was animal disease prevention and management efforts,” said Rep. Bacon.  “This bill includes $300 million in funding for these efforts, including a priority of mine, a new U.S.-only vaccine bank stockpiling the FMD vaccine.

Rep. Bacon also stated he was glad that the farm safety net is strengthened with the 2018 Farm Bill.

“Crop insurance is protected in this legislation and it also makes several key improvements, including new insurance products and improvements to whole farm revenue coverage for specialty crop producers,” added Rep. Bacon. Certainty is provided to America’s farmers and ranchers with important policies like Price Loss Coverage, Agriculture Risk Coverage, Commodity Loans, Dairy Margin Coverage, Livestock Disaster Programs, and Crop Insurance.

Research, extension, and education is also vital to Nebraska’s ag economy, and the University of Nebraska is a front-runner in these areas.

“This bill provides over $600 million in funding for research and extension projects for land grant universities like the University of Nebraska, which helps keep Nebraska agriculture a leader of innovation,” said Rep. Bacon.

There are many wins for Nebraska in this bill.

“One out of every four jobs in Nebraska is related to agriculture and the 2018 Farm Bill provides certainty not only to our farmers, ranchers and producers, but to so many other related industries in Nebraska,” added Rep. Bacon.  “When our producers thrive, the processing, financial services and transportation industries on our state thrive meaning that more and more families in Nebraska are impacted by a successful farm bill.”



Statement of Secretary Perdue on Passage of the Farm Bill

U.S. Secretary of Agriculture Sonny Perdue today hailed the passage of the 2019 Farm Bill.  The House of Representatives approved the conference report on the bill this afternoon, following the Senate’s passage yesterday.

Perdue issued the following statement:
“The passage of the 2019 Farm Bill is good news because it provides a strong safety net for farmers and ranchers, who need the dependability and certainty this legislation affords.  This Farm Bill will help producers make decisions about the future, while also investing in important agricultural research and supporting trade programs to bolster exports.  While I feel there were missed opportunities in forest management and in improving work requirements for certain SNAP recipients, this bill does include several helpful provisions and we will continue to build upon these through our authorities.  I commend Congress for bringing the Farm Bill across the finish line and am encouraging President Trump to sign it.”



Statement, Nebraska Farm Bureau President Steve Nelson Regarding House Passage of 2018 Farm Bill

“Today Congress took yet another step forward in delivering a new farm bill that works for rural and urban America. We greatly appreciate the U.S. House of Representatives’ vote granting final passage of the 2018 Farm Bill. The House’s action ensures President Trump will have the opportunity to sign a new farm bill into law.”

“We thank Congressman Fortenberry, Congressman Bacon, and Congressman Smith for their votes and support for the farm bill. All have worked tirelessly to help shape the bill into one that addresses many Nebraska Farm Bureau priorities.”



Iowa Corn Welcomes Passage of 2018 Farm Bill

Iowa Corn Growers Association President Curt Mether released the following statement today after the announcement that Congress reached an agreement on a new farm bill. The final version of the farm bill passed out of the US Senate Tuesday by a bipartisan vote of 87-13 and the US House passed it out on a bipartisan vote today of 369-47. Now the bill will be sent to the President to await his signature to become law.

“Iowa Corn welcomes the passage of the 2018 Farm Bill before the start of the new year,” stated Mether. “ICGA is pleased to see there were no cuts to the current crop insurance program and a continuation of the Conservation Stewardship Program (CSP). “ICGA also appreciates the Market Access Program (MAP) and Foreign Market Development (FMD) trade programs will be funded at full levels for the next five years-a huge win for Iowa corn farmers as these fundamental programs support the promotion of corn in all forms in international markets. The Genomes to Phenomes Initiative has been included in the bill as it is essential for Iowa corn farmers in developing new varieties allowing the potential for higher yields. All of these programs are crucial to the success of Iowa’s corn growers and we thank our grower members for your efforts in urging lawmakers to reach a deal before the new year.”



Naig comments on passage of Farm Bill

Iowa Secretary of Agriculture Mike Naig issued the following statement regarding Congressional passage of a new Farm Bill. The bill now goes to President Trump to be signed into law.

“A new five-year Farm Bill will provide needed certainty and predictability for farmers in what has been a very volatile and challenging time. I commend the efforts by leaders in both the House and Senate, including Sen. Ernst who was a conferee, to finalize the agreement and get it passed. I encourage President Trump to sign the bill into law quickly so farmers can know what federal policy will be as they continue to plan for the 2019 growing season.

“Crop insurance, conservation and trade were the top three issues I heard about as I traveled the state and visited with farmers about the Farm Bill. The bill passed today maintains the crop insurance program and continues the important federal support for conservation efforts. The bill also preserves important trade promotion programs within USDA.

“The bill also provides significant funding to support efforts to prepare for and potentially respond to foreign animal diseases, including funding for a vaccine bank for foot and mouth disease. With new cases of African swine fever continuing to be found around the world and ongoing concerns about avian influenza, it is critically important we continue to expand emergency response preparations on both the state and federal level.”



NCGA Statement on Farm Bill Passage

National Corn Growers Association President Lynn Chrisp today made the following statement after Congressional approval of the 2018 Farm Bill, the Agriculture Improvement Act of 2018 (H.R. 2). The legislation passed the Senate 87-13 Tuesday and the House 369-47 today. It now goes to President Trump to be signed into law.

“The certainty of a new farm bill is very welcome news for farmers as they begin to look toward the new year. NCGA is pleased to see a return to the bipartisanship that has been a hallmark of past farm bills and we look forward to the President quickly signing the bill into law.

“To put it bluntly, the farm economy stinks. Between depressed commodity prices, record low farm incomes and tariffs and trade uncertainty, farmers are facing difficult decisions. Getting the farm bill passed, and signed into law, is one less thing they need to worry about.

“NCGA is most pleased to see the bill maintains support for a robust crop insurance program, our organization’s top priority, and strengthens the ARC-CO program through administrative improvements including a one-time program change option, an increase to the plug yield for disaster years, the use of a trend-adjusted yield factor, and a market adjustment provision for the floor price. The bill also provides increased funding for trade promotion programs that are especially important to agriculture at this time.

“On behalf of our grower members, I thank Senate Agriculture Committee Chairman Pat Roberts and Ranking Member Debbie Stabenow, and House Agriculture Committee Chairman Mike Conaway and Ranking Member Collin Peterson, along with members of the farm bill conference committee for seeing this process through and passing a new bill before adjourning for the year.”



NCBA Hails Congressional Approval of 2018 Farm Bill

National Cattlemen’s Beef Association President Kevin Kester today issued the following statement regarding U.S. House and Senate passage of the 2018 Farm Bill conference report:

"America’s cattlemen and women want common sense and certainty from Congress this holiday season and throughout the year - today they received that through the passage of the Farm Bill. Certainty that a Foot-and-Mouth Disease vaccine bank will be authorized and funded. Certainty that important conservation programs will be reauthorized and funded. And certainty that trade promotion and access to foreign markets will remain a priority in the years to come.

"On behalf of all of our producers, I want to sincerely thank every Member of Congress who supported the Farm Bill - especially U.S. Senate Agriculture Committee Chairman Pat Roberts, Ranking Member Debbie Stabenow, U.S. House Agriculture Committee Chairman Mike Conaway, and Ranking Member Collin Peterson, who all worked together across party lines for the past two-plus years. It wasn't always easy, but we truly appreciate all your hard work."



 Congress Passes 2018 Farm Bill; Trump To Sign It

The National Pork Producers Council praised Senate and House lawmakers for today approving the 2018 Farm Bill, which includes important mandatory funding for animal disease prevention and preparedness efforts. President Trump is expected to sign the legislation into law in the coming days.

“Obviously, the Farm Bill is extremely important to American agriculture,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “The 2018 bill is particularly good for livestock agriculture because it includes funds that will help protect our animals, our food supply and our economy from foreign animal diseases.”

The five-year agricultural blueprint includes $120 million for the first four years for animal health and disease preparedness, requiring at least $5 million a year for the National Animal Disease Preparedness Program. Money can be allocated for a foreign animal disease vaccine bank; for the National Animal Health Laboratory Network (NAHLN), which provides disease surveillance and diagnostic support; and, through block grants, for state efforts to prepare for any foreign animal disease outbreak. The NAHLN is authorized for another $30 million a year for all five years of the bill, and in the fifth year another mandatory $30 million is allocated for all three programs, with at least $18 million going to the state block grants. The bill also gives the Agriculture secretary discretion to allocate additional funds, as necessary, for the vaccine bank and the disease preparedness program.

In addition to the animal health and disease-preparedness provisions, the bill has funding for the International Market Development Program, which includes the Market Access Program and the Foreign Market Development Program that support export markets for U.S. farm goods. The programs are funded at not less than $200 million and not less than $34.5 million, respectively.

“NPPC thanks members who voted in favor of this vital legislation and is particularly grateful to the leadership of the Senate and House agriculture committees for putting together a very good Farm Bill,” Heimerl said.



NAWG Supports 2018 Farm Bill Conference Report; Urges President to Sign into Law

The National Association of Wheat Growers (NAWG) applauds the Senate and House of Representatives for their quick action and bipartisan votes on the Farm Bill conference report, and call on President Trump to sign the bill into law as quickly as possible.

“Historically low prices, trade instability, and the current weather challenges are all weighing heavily on the minds of growers,” stated NAWG President and Sentinel, OK wheat farmer Jimmie Musick. “The 2018 farm bill provides the certainty they need to get through these arduous times and many of the programs within the bill can help growers stay in business.”

NAWG applauds the committee for maintaining a strong crop insurance title and supports the language allowing for producer choice between Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). NAWG appreciates the Committee recognizing the importance of using consistent data in determining farm program payments, while making RMA data its primary source, and for making improvements to both ARC and PLC.

“Many producers own multi-generational farms and want our children to be able to thrive on the land more than we did,” continued Musick. “This means leaving it healthier and better than when we received it and incorporating good stewardship practices into our operations. The farm bill helps growers achieve this goal by supporting investment in conservation tools and wheat research.”

Additionally, NAWG is pleased to see that the conference report increases funding for research of Fusarium head blight to the amount of $15 million for each of fiscal years 2019 through 2023.

“The United States exports 50% of its wheat, making trade a vital component of the wheat industry,” continued Musick. “NAWG is pleased to see that the conference report renews funding for the Market Access Program (MAP) and the Foreign Market Development (FMD) program. We also support statements made by U.S. Wheat Associates (USW) on both programs and appreciate their work to make these programs successful for wheat.”

“NAWG commends the House and Senate for quickly voting on the bill and passing it out of their respective Chambers with strong bipartisan support,” concluded Musick. “We urge President Trump to support this bill and sign it into law.”



Farm Bill Passage Brings Farmers, Ranchers Added Certainty
American Farm Bureau President Zippy Duvall

“Today’s passage of the 2018 farm bill by the House of Representatives, and the Senate’s approval yesterday, is welcome news to America’s farmers and ranchers and the consumers who depend on them for our food, fiber and energy crops.

“Passage means we are one signature away from renewal of risk management tools, foreign market development and environmental stewardship programs that farmers and ranchers need to survive a prolonged and painful downturn in farm income and be sustainable.

“Americans from all walks of life will benefit from this farm bill, including consumers, low-income families, seniors and military veterans

“We eagerly await the president’s signature on this legislation and we know that Agriculture Secretary Perdue will implement it as quickly and efficiently as possible.”



NMPF Thanks Congress for Sending Pro-Dairy Farm Bill to White House, Urges President to Sign

The National Milk Producers Federation (NMPF) applauded the U.S. House of Representatives for completing congressional approval of a new farm bill and sending to the White House a law that will provide important economic assistance to dairy producers in times of need. NMPF urged President Donald Trump to immediately sign the bill.

“The farm bill passed by the full Congress represents a truly bipartisan spirit and offers genuine hope for agriculture,” said Jim Mulhern, president and CEO of NMPF. “The dairy provisions adopted by Congress will bring critically important assistance to the nation’s dairy farmers. The sooner the president signs the bill, the sooner that the Agriculture Department can implement these important policy improvements.”

The farm bill’s adoption by the House follows yesterday’s Senate vote of approval and reflects months of work in both chambers.

Among House members, Reps. K. Michael Conaway (R-TX) and Collin Peterson (D-MN), the chairman and ranking member of the House Agriculture Committee, worked tirelessly to reach a final agreement. In addition, NMPF thanked several members of the conference committee who advocated strongly for dairy, including Vice Chairman Glenn ‘GT’ Thompson (R-PA) and Reps. Jim Costa (D-CA), Roger Marshall (R-KS), Ann Kuster (D-NH), Sean Duffy (R-WI), Tom O’Halleran (D-AZ), Bob Gibbs (R-OH), Paul Tonko (D-NY), Jodey Arrington (R-TX), and Tim Walz (D-MN). NMPF also appreciates the advocacy of Reps. David Valadao (R-CA), Peter Welch (D-VT), Elise Stefanik (R-NY), Joe Courtney (D-CT), John Faso (R-NY), Dan Newhouse (R-WA), Tom Emmer (R-MN), Mike Simpson (R-ID), and Mike Bost (R-IL) on specific provisions included in the bill.

The farm bill features several important policy reforms for dairy, including:
-    Affordable higher coverage levels in the Dairy Margin Coverage program (DMC) (renamed from the Margin Protection Program) will permit all dairy producers to insure margins above $8.00 on their Tier I (first five million pounds) production history.
-    The bill will reduce the cost of $5.00 margin coverage by roughly 88 percent. This aids larger producers and is critically important in times of catastrophically low milk prices.
-    Greater flexibility to allow producers of all sizes to access Tier I premium rates.
-    Expanded access to additional risk management tools, allowing producers to participate in both the DMC and the Livestock Gross Margin insurance program.
-    An option that will allow producers to receive a 25-percent discount on their premiums if they lock in their coverage level for the entirety of the bill.

Collaborative work across the dairy sector was instrumental in securing this year’s pro-dairy bill, Mulhern said. NMPF and the International Dairy Foods Association (IDFA) forged an unprecedented industry consensus during discussions of the bill dating to last year. The final bill includes an agreement reached between the two organizations on risk management that will help producers, cooperatives and processors to better hedge price risk.

“IDFA worked closely with colleagues at NMPF to unite behind shared solutions for dairy,” said Michael Dykes, DVM, president and CEO of IDFA. “Members of Congress have called our collaborative efforts historic, refreshing and, best of all, exceedingly helpful to their farm bill efforts. The dairy provisions included in the bill represent the positive outcomes we can gain through sustained industry collaboration.”

“Dairy works best when it works together,” Mulhern said. “Congress noticed. Hard work and cooperation among NMPF, IDFA, member co-ops, state associations and the entire dairy community helped craft a bill that will benefit us all.”



2018 Farm Bill Passes Congress

National Sorghum Producers Board of Directors Chairman Dan Atkisson, a sorghum farmer from Stockton, Kansas, made the following statement in response to Congress passing the 2018 Farm Bill today:

"National Sorghum Producers thanks the Senate and House for passing the 2018 Farm Bill. The bill provides certainty and stability as producers across the country try to balance uncontrollable variables. We commend leadership for producing a solid bill under the current circumstances.

“The new bill provides several helpful provisions for sorghum producers, including conservation language on resource conserving crop rotations. We also appreciate the yield update opportunity and the loan rate increase. 

“As this roller coaster year comes to a close, we see this as a win for sorghum producers. We appreciate the 115th Congress for holding true to their promise in delivering a farm bill this year and we hope to see the new legislation move across the President's desk quickly.”



ABA Applauds Congress for Final Passage of 2018 Farm Bill
Rob Nichols, American Bankers Assoc. president and CEO

“We applaud the U.S. Senate and House of Representatives for passing the 2018 Farm Bill. This important piece of legislation provides critical risk management tools and stability for our nation’s farmers and ranchers, as well as the 2,000 farm banks that serve them every day.

“We are particularly pleased that lawmakers recognized the vital role of crop insurance and USDA loan guarantees. These programs help farm banks make loans and manage risk in both good times and bad, which is critical to maintaining a stable and vibrant farm economy.

“We especially want to thank House and Senate Agriculture Committee Chairmen Mike Conaway and Pat Roberts and Ranking Members Collin Peterson and Debbie Stabenow for their leadership in advancing this legislation to the president’s desk for his signature.”



ICBA Applauds House Passage of Farm Bill

Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the House of Representatives’ passage of the Agriculture and Nutrition Act of 2018 (H.R. 2).

“ICBA applauds today’s bipartisan House vote to pass a new farm bill and send the bill to President Trump to be signed into law.

“The bipartisan bill includes important commodity price protections that will provide producers and community banks with greater business-planning certainty over the next five years. This is essential during an era of low commodity prices, sharply lower net farm income, and foreign trade uncertainties.

“The farm bill also maintains a strong crop insurance program, increases USDA guaranteed farm loan limits to $1.75 million, and provides for the possible increase in guaranteed USDA rural development loans—all of which are ICBA and community bank priorities.

“ICBA and the nation’s community bankers appreciate the bipartisan congressional action on the farm bill and urge President Trump to quickly sign it into law.”



Groups support climate friendly soil carbon pilot program in Farm Bill

The American Coalition for Ethanol (ACE), Environmental Entrepreneurs (E2), the National Corn Growers Association (NCGA), and the Natural Resources Defense Council (NRDC) thank the Farm Bill conferees for including a new pilot Environmental Quality Incentive Program (EQIP) in the 2018 Farm Bill Conference Report to promote and document the benefits of farming practices which improve soil health.

“We appreciate the leadership of Senator Wyden (D-Ore.) in working with both House and Senate negotiators in securing the original provision in the Senate bill that will encourage farmers to implement and document the true greenhouse benefits of crop production that can make a meaningful impact in the fight against climate change,” said Nicole Lederer, co-founder of E2.

“This new EQIP provision provides the tools to incentivize farmers to adopt smart soil management practices that improve soil health to increase drought resiliency, improve nutrient utilization, and enhance soil carbon sequestration,” said Keith Alverson, South Dakota farmer and NCGA board member. “EQIP is a critical conservation working lands program most adept at helping farmers adopt new practices that improve production while enhancing ecosystem benefits related to agriculture. As a farmer, I have seen the benefits of these practices on my own farm and look forward to working with USDA to document these environmental values on a larger scale.”

“The economic value farmers can receive from being properly credited for their ability to sequester carbon and participate in low carbon fuel markets and for other climate policies is significant,” said Brian Jennings, ACE CEO.  “ACE is committed to fostering the development of these low carbon market opportunities that also increase income to farmers and rural America.”



U.S. Farmers & Ranchers Alliance® Elects New Chairman and Launches Farm, Food, Facts Podcast
   
With U.S. Farmers & Ranchers Alliance (USFRA) new 2.0 focus of elevating farmers and ranchers as the solution for sustainability, the organization is proud to announce National Corn Growers Association Past President Chip Bowling as its fourth Chairman.

Since USFRA’s inception in 2010, Chip’s predecessors include Bob Stallman, Nancy Kavazanjian and Brad Greenway. Also announced at the fall board meeting in Kansas City, coinciding with NAFB Convention, was USFRA’s new Farm, Food, Facts, which is the exclusive podcast on food and agriculture for retailers, CPGs, sustainability supply chain leaders and food trade media.

Elected at the USFRA board meeting on November 8, Chip Bowling will be joined by a new executive committee, including:
    Vice Chairman: Scott VanderWal, representing American Farm Bureau Federation
    Treasurer: Blair Van Zetten, representing American Egg Board
    Secretary: Anne Meis, representing Nebraska Soybean Board
    At-Large: Jennifer Houston, representing, National Cattlemen's Beef Association
    At-Large Premier: Michael Parrish, representing Bayer
    Immediate Past Chairman: Brad Greenway, representing National Pork Board

“I truly believe farmers and ranchers are the change makers, and real sustainability starts with each acre,” said Chip Bowling, USFRA Chairman and Maryland crop farmer. “With 48 percent of our land in the stewardship of America's farmers and ranchers, now more than ever, we need all of food and agriculture to speak in unison and ensure we have a seat at the table across the entire value chain. Our Farm, Food, Facts podcast is the first of many deliberate steps in proactively engaging food retailers and CPGs with the farmer and rancher perspective.”

USFRA’s Farm, Food, Facts podcast, hosted by SupermarketGuru Phil Lempert, food trends editor for NBC News’ Today Show, discusses top stories about today’s food. Phil engages directly with a farmer or rancher in real-time about questions surrounding sustainability and food production. Also, sustainability thought leaders will offer insights into food trends and perceptions of farming practices. It airs every Wednesday from 11:30 a.m. to 12:00 p.m. CST. Visit www.fooddialogues.com/farmfoodfacts to sign up for the podcast and listen to the archived episodes, which are also available on iTunes, Stitcher and Soundcloud.

Of USFRA’s 15-member Board of Directors, our new board members are:
    Joe Koss, Culver’s: Joe Koss is president and chief executive officer of Culver Franchising System, Inc. (CFSI), the franchisor for more than 670 Culver’s restaurants in 25 states with over 20,000 team members.
    Brody Stapel, Edge Dairy Farmer Cooperative: Brody Stapel of Double Dutch Dairy LLC, farms in Cedar Grove, Wis., and serves as President of Edge Dairy Farmer Cooperative.

USFRA’s Board of Directors, consisting primarily of farmers and ranchers, includes: Jim Adams (U.S. Poultry & Egg Association), Phil Borgic (National Pork Producers Council), Chip Bowling (National Corn Growers Association), Cameron Gibson (United Soybean Board), Brad Greenway (National Pork Board), Jennifer Houston (National Cattlemen's Beef Association), Joe Koss, (Culver’s), Rochelle Krusemark (Minnesota Soybean Research & Promotion Council), Anne Meis (Nebraska Soybean Board), Jeanette Merritt (Indiana Soybean Alliance), Michael Parrish (Bayer), Roberta Simpson-Dolbeare (Illinois Soybean Association), Brody Stapel (Edge Dairy Farmer Cooperative), Blair Van Zetten (American Egg Board), Scott VanderWal (American Farm Bureau Federation)



Weekly Ethanol Production for 12/7/2018

Here is the weekly ethanol supply-and-demand data for the week ended 12/7/2018.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 1.046 million barrels per day (b/d)—or 43.93 million gallons daily. That is down 23,000 b/d (2.2%) from the prior week and 42,000 b/d (3.9%) lower than last year at this time. The four-week average for ethanol production pared back to 1.051 million b/d—3.0% below last year at this time—for an annualized rate of 16.11 billion gallons.

Stocks of ethanol were 22.9 million barrels. That is down marginally from 23.0 million barrels the prior week.

There were zero imports recorded for the fourth week in a row. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of October 2018.)

Average weekly gasoline demand climbed 1.8% from the previous week to 9.036 million barrels (379.5 million gallons) daily. This is equivalent to 138.52 billion gallons annualized. Refiner/blender input of ethanol grew 1.6% to 910,000 b/d, equivalent to 13.95 billion gallons annualized.

Expressed as a percentage of daily gasoline demand, daily ethanol production decreased to 11.58%.



DDGS, Grains Sales Top $400 Million At 2018 Export Exchange

The grain buyers from 35 countries who attended this year’s Export Exchange conference in Minneapolis have since reported buying an estimated $403 million worth of coarse grains and co-products, including distiller’s dried grains with solubles (DDGS) and feed grains.

The biennial event was held in October, sponsored by the U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy to offer an opportunity for education and introductions to members of the U.S. grains production and export industries.

Buyers and end-users were polled while at the conference and immediately after regarding purchase agreements with sellers and how much volume (tonnage) they bought. In total, attendees reported sales of approximately 2.1 million metric tons of grains and co-products traded either at the conference or immediately before or after.

"Bringing buyers and sellers together in this way is crucial to U.S. farmers right now, and these sales show buyers at Export Exchange 2018 were serious about making deals," said Tom Sleight, president and CEO of the Council. "Considering the international trade climate, we are pleased to see these number are holding steady."

Many buyers this year noted their purchasing strategies were more short-term, due to uncertain relationship between the United States and China, but reported they valued their long-term partnerships with U.S. suppliers. Many also reported they are still considering future purchases.

The top grain traded during the two-day conference was DDGS, with more than 1.3 million metric tons collectively exchanged. This number translates to just over 11 percent of last year's total U.S. DDGS exports. In addition, buyers reported contracting 619,000 metric tons of U.S. corn and 4,050 metric tons of U.S. sorghum.

“It’s no surprise that the top commodity traded during Export Exchange was DDGS, as last year we shipped the ethanol co-product to 50 countries on five continents,” said RFA President and CEO Geoff Cooper. “DDGS and other ethanol co-products provide a value-added market for the U.S. ethanol industry, and the Export Exchange was successful, providing an ideal platform to connect buyers and sellers.”

Export Exchange 2018 offered overseas attendees a unique opportunity to meet and build relationships with domestic suppliers of corn, DDGS, sorghum, barley and other commodities. Nearly 200 international buyers and end-users of coarse grains and co-products were in Minneapolis for the conference, held Oct. 22-24, and for related tours of U.S. farms, ethanol plans and export infrastructure as part of 21 Council-sponsored trade teams.

“The 2018 Export Exchange has once again demonstrated the numerous benefits that ethanol and its co-products, like DDGS, bring to the international market,” said Growth Energy CEO Emily Skor. “DDGS are the most extensively studied feed ingredient in the past 20 years and stands testament to the contributions of the biofuels industry in supporting global agriculture. This event is a critical venue for American producers to build bonds internationally and foster a healthy trade environment.”

Other grains traded at Export Exchange included:
• Corn Gluten Feed —54,000 metric tons;
• Corn Gluten Meal – 600 metric tons;
• Barley—500 metric tons; and
• Other products including soybeans, soybean meal, feed wheat – 70,000 metric tons

The next Export Exchange is scheduled for 2020. More information about the recent event is online at www.exportexchange.org.



Farm Bureau Board Endorses USMCA Agreement

The board of directors of the American Farm Bureau Federation today recommended swift passage of the U.S.-Mexico-Canada Agreement.

Exports to Canada and Mexico under USMCA’s predecessor, the North American Free Trade Agreement, increased from $8.9 billion to $39 billion yearly. The USMCA would retain those gains while adding improvements in terms of trade for poultry, eggs, dairy and wine. AFBF, meanwhile, continues to press for a resolution to disputes over steel and aluminum imports that have led to the imposition of tariffs and other trade barriers against U.S. agricultural products.



Prices for Majority of Fertilizers Still Higher

 Retail fertilizer prices continue their pattern of mostly higher prices the first week of December 2018, according to prices tracked by DTN.

Five of the eight major fertilizers are slightly higher, but none had a noteworthy price move compared to last month. Potash had an average price of $369 per ton, up $1/ton; urea was $3/ton higher at $410/ton; anhydrous was $7/ton more expensive at $524/ton; UAN28 saw a $4/ton increase to $249/ton; and UAN32 prices, at $293/ton, were $6/ton higher.

Two fertilizers were slightly lower than last month, but the price change was fairly subdued. DAP had an average price of $501/ton, down $5/ton while 10-34-0 was $1/ton cheaper at $457/ton.

MAP prices were unchanged from last month at $529/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.45/lb.N, anhydrous $0.32/lb.N, UAN28 $0.44/lb.N and UAN32 $0.46/lb.N.

All eight of the major retail fertilizer prices are now higher compared to last year with prices shifting higher in recent months. Potash is 8% more expensive, MAP is 12% higher, 10-34-0 is 13% more expensive, DAP is 14% higher, UAN28 is 16% more expensive, UAN32 is 17% higher, urea is 19% more expensive and anhydrous is now 24% higher compared to last year.



Syngenta offers advice on getting the most residual length out of herbicides

As corn and soybean growers look for advantages over yield-robbing, tough-to-control weeds, Syngenta is providing key insights into factors that determine how long a herbicide’s residual lasts.

Joe Wuerffel, Ph.D., Global Technical Manager for Herbicides at Syngenta, said these factors are the key to keeping fields clean.

“It really boils down to six main points,” he said. “If growers take these into consideration when planning their weed-management programs, they’ll be much more likely to increase the mileage on their herbicides.”

Amount of moisture
A certain amount of moisture, from either rainfall or irrigation, in fields after a pre-emergence application is critical to activate the herbicide. Most herbicides require at least a half-inch of water after a pre-emergence herbicide has been sprayed. Growers should try to plan herbicide applications around forecasted rain to help ensure a good activating rainfall for their pre-emergence herbicide. Fields should then be scouted after either a rainfall or irrigation watering to ensure proper activation has occurred. If escapes are present, plans should be made to treat these weeds early for maximum control.

Weed type and density
Growers should know what the primary weeds are in each field to make sure they are using the right products on the right fields at the right rate and at the right time in the right way.

Primary weeds, including large-seeded broadleaf weeds like giant ragweed, cocklebur and morningglory, are tough to control because they germinate from deep within the soil profile.

“This is what led us to seek out the unique active ingredient bicyclopyrone,” Wuerffel said. “It complements the other three active ingredients in Acuron® corn herbicide to deliver more effective and more consistent control of large-seeded broadleaf weeds. Herbicides without bicyclopyrone only provide partial control, if any, over these large-seeded broadleaf weeds.”

Weed and crop size
Growers should spray a post-emergence herbicide when both weeds and crops are small. The tallest weed in a field shouldn’t grow taller than what is stated on the herbicide label, which for most weeds is smaller than 4 inches. Keep in mind, it may only take a few days for weeds to reach those heights and grow too large for post-emergence herbicides to be completely effective. At the same time, post-emergence herbicides should be applied before corn or soybeans reach canopy, as this allows the herbicide to penetrate the soil and reach the weeds.

Type of herbicide used
Herbicides are created with different active ingredients, some of which are stronger against specific weed species than others, so it’s important to remember that not all herbicides are created equal.

“Many generic premixes contain metolachlor, an older and less potent version of S-metolachlor from Syngenta, which is included in many of our products. To obtain an equal level of weed control, the metolachlor rate has to be 1.5X higher than the S-metolachlor rate,” Wuerffel said. “Growers have to be careful that they’re aware of these seemingly subtle differences that could have a major impact on their weed control.”

Use rate
Experts recommend always using the full, labelled rate of a herbicide. An Iowa State University study found that reduced rates may be adequate against a flush of early-season weeds, but the residual control is greatly reduced – potentially creating problems later in the growing season.

“Using a full rate is the best way to maximize the length of that residual herbicide,” Wuerffel said. “If growers start to take it down to a three-quarters rate or a half rate, they’re essentially planning on having to follow up with a post-emergence application.”

Syngenta Technical Product Lead Dane Bowers agrees. Use rate is a major factor in maximizing residual control.

“Always apply herbicides at the full labelled rate and at the correct growth stage,” Bowers said. “Anything other than a full use rate is a recipe for disaster and may cause yield loss or additional spending to get weeds under control. Use of reduced rates can also contribute to selection of resistant weeds.”

Application
Bowers also recommends using a two-pass program of overlapping residuals to extend the length of herbicide performance.

“It’s very important to use products with multiple, effective sites of action,” Bowers said. “In soybeans, I recommend using a pre-emergence application of Boundary® 6.5 EC, BroadAxe® XC or Prefix® herbicides. These each contain two effective sites of action. Both Boundary 6.5 EC and BroadAxe XC can be followed by a post-emergence application of Flexstar® GT 3.5 herbicide for two additional sites of action.”

Using multiple effective sites of action gives greater control of weeds. It also prevents yield-robbing weeds from going to seed, limiting their impact on the following year and minimizing uncontrolled weeds being harvested with the crop.

Gordon Vail, technical product lead for corn herbicides at Syngenta, recommends a similar course of action in corn.

“If you’re looking for the longest-lasting residual weed control in corn, I’d recommend Acuron,” Vail said. “It contains four active ingredients, including the unique component bicyclopyrone, and three effective sites of action. It also has great timing flexibility, from 28 days preplant, including burndown, up to 12-inch corn. Acuron can also be applied in a split-shot application with a portion of the rate applied pre-emergence, followed by the remainder of the rate applied post-emergence.”

Vail said that not only have multi-year trials shown Acuron offers the most consistent performance on a broad spectrum of tough weeds, but with four effective active ingredients, it also offers the best solution for responsible weed-resistance management.