Tuesday January 29 Ag News

NE USDA FSA: Information on Revised Deadlines Due to Impact of Government Shutdown
Bobbie Kriz-Wickham, Public Affairs/Outreach Coordinator

With the end of the partial government shutdown, Nebraska Farm Service Agency offices across the state are now fully open and able to provide service on all programs.

Due to the impact of the shutdown, FSA has extended deadlines for many of its programs. Below are those updated deadlines applicable in Nebraska:
-    Market Facilitation Program - Deadline to apply extended to Feb. 14, 2019
-    Marketing Assistance Loans - If loan matured in December 2018, settlement date extended to Feb. 14, 2019
-    Emergency Conservation Program - Performance reporting due Feb. 14, 2019
-    Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish Program - Notice of loss due Feb. 14, 2019
-    Livestock Indemnity Program - Notice of loss due Feb. 14, 2019
-    Noninsured Crop Disaster Assistance Program -
      * Notice of loss for 72-hour harvest and grazing (as applicable) due Feb. 14, 2019
      * Notice of loss for prevented planting and failed acres due Feb. 14, 2019
      * Applications for payment for 2018 covered losses due Feb. 14, 2019
-    Tree Assistance Program - Notice of loss due Feb. 14, 2019
-    Acreage Reporting - January reporting deadlines extended to Feb. 14, 2019; in Nebraska for the Noninsured Crop Disaster Assistance Program (NAP), this includes honey bees and grapes

For specific inquiries related to these programs or any not listed above, individuals are encouraged to contact their local USDA Service Center.



Nebraska Farm Bureau Tells House Ways and Means Committee “Necessity” Drove Development of New Association Health Plan

The Nebraska Farm Bureau’s new Association Health Plan (AHP) was driven by the need to serve Nebraska farm and ranch families struggling to find affordable health insurance in the wake of changes in the insurance industry resulting from passage of the Affordable Care Act (ACA) nearly a decade ago. In providing invited testimony before a full contingency of the House Ways and Means Committee, Nebraska Farm Bureau Chief Administrator Rob Robertson testified that the organization’s first-of-its-kind AHP was borne out of necessity to help those in need.

“Escalating health care and health insurance costs were among the top concerns registered by farmers and ranchers who attended a series of listening sessions held across our state in the summer of 2018. Whether it was reports of health care premiums becoming the first or second highest living expense, stories of spouses having to find off-farm work to secure employer provided health insurance, or families (young and old) dropping health care insurance all together, we heard directly from those struggling with how to deal with increasing health insurance costs,” said Robertson.

Robertson’s testimony was provided as part the Committee’s hearing on “Protecting Americans with Pre-Existing Conditions.” The Nebraska Farm Bureau AHP is both ACA compliant and covers pre-existing conditions.

“In creating our AHP, we believed it was imperative to cover pre-existing conditions. We wanted to offer great coverage to our farmers and ranchers that was reasonably priced. Allowing farmers and ranchers to pool together to form a large health insurance group through the AHP was the best way we could offer this product at a discounted rate from the high costs of premiums in the individual market. Without the ability to form a bona fide large employer group, farm and ranch members would be stuck with the high costs and limited options in the individual health insurance market, if they could afford them at all,” said Robertson.

In testimony, Robertson provided a real-life example of how the AHP is helping Nebraska Farm Bureau members.

“We had a husband and wife who farm together in Southeast Nebraska sign-up for our AHP. They are self-employed and had seen the cost of their health insurance premiums continue to rise, especially over the last two years. They were going to have to spend more than $26,000 for their health plan in 2019. By enrolling in our AHP and being part of a larger group health plan, they were able to get the same coverage and pay just under $19,000,” said Robertson.

Outside of simply saving money on premiums, Robertson pointed out numerous examples of enrollees who previously went without health insurance, who have now entered the health insurance marketplace because of the more affordable plans offered under the Nebraska Farm Bureau AHP.

“Our organization’s goal in developing the AHP was to help offer a more affordable health insurance option that provided quality coverage, including coverage for pre-existing conditions for our member families. With only one year under our belt and with just under 700 enrollees, we believe we have done that, and are looking forward to offering similar coverage again in future years,” Robertson told the Committee.



Gregg; Naig to participate in Trade Mission to Colombia, Panama

Iowa Lt. Gov. Adam Gregg and Iowa Secretary of Agriculture Mike Naig will be participating in an international trade mission to South America, led by Iowa Economic Development Authority (IEDA) officials, on Feb. 3-9, 2019. This will be Lt. Governor Gregg’s first trade mission since taking the oath of office on Jan. 18, 2019.

“Trade missions are an important part of strengthening Iowa’s economy.  They help us open and expand manufacturing and agricultural markets, while simultaneously building upon our international relationships,” said Lt. Gov Gregg. “In a new and fast changing economy, Iowans are connected to the global market.  I am honored to represent Iowa in Columbia and Panama on our state’s behalf.”

Iowa is the second largest ag exporting state in the country with more than $13.2 billion in agricultural exports annually. Last year, over $80 million in Iowa goods went to Colombia, with a 247% increase in trade just within the first six months of 2018. Colombia is a top 25 trading partner with the United States overall, and is America’s eleventh largest agricultural export market. Panama is a strategic partner for U.S. exports, serving as a crossroads of international trade located between two oceans and two continents.

“One of my top priorities is to focus on expanding markets for Iowa’s crop farmers, livestock producers, and agribusinesses,” said Secretary Naig. “I look forward to joining Lt. Gov. Gregg and Iowa farmers on this trade mission to market Iowa’s brand and quality agricultural products.

Others participating in the trade mission include: Iowa Pork Producers Association; Iowa Corn Growers; Iowa Soybean Association; Iowa Farm Bureau Federation; and Midwest Premier Foods.



USDA Expected to Release Delayed Reports on Feb. 8

Farmers and industry officials looking for agricultural data will have to wait until February 8 to get access to some of the delayed USDA reports. Chief Economist Dr. Robert Johansson said Monday that the agency will release the major reports delayed by the government shutdown on that date.

Some of the reports expected to be released include the February World Agricultural Supply and Demand Estimate, January crop production reports, the annual crop production report, grain stocks, rice stocks, winter wheat and canola seedings and cotton ginnings.

Some of the other reports that do not USDA a lockup for analysis could be released prior to February 8.



NPPC Urges $3.5 Billion Chinese Pork Purchase

With Chinese officials in Washington to discuss trade relations, the National Pork Producers Council today urged the United States and China to quickly resolve their trade differences and asked the Asian nation to make a minimum $3.5 billion purchase of U.S. pork over the next five years.

China is the largest consumer of pork in the world, making it a top market for U.S. pork exports over the past several years. (The U.S. pork industry in 2017 shipped $1.1 billion of product there, making it the No. 3 export destination for U.S. pork.) Pork is said to represent about 15 percent of the Consumer Price Index in China and could single-handedly make a huge dent in the U.S.-China trade imbalance.

“China has been a tremendous market for U.S. pork and, absent numerous trade barriers, probably would be our No. 1 export market,” said NPPC President Jim Heimerl, a pork producer from Ohio. “But, never mind China’s preexisting barriers on U.S. pork, the 50 percent punitive tariffs on U.S. pork have slowed our exports to a trickle. We call on the Chinese to begin immediate purchases of U.S. pork of at least 350,000 tons each year from the United States for the next five years.”

U.S. pork producers now face tariffs of 62 percent on exports to China, which in early April 2018 imposed a 25 percent tariff in response to U.S. tariffs on Chinese steel and aluminum and in June added another 25 percent duty in retaliation for the U.S. tariffs levied on a host of Chinese goods because of China’s treatment of U.S. intellectual property and forced transfers of American technology. China already had a 12 percent tariff on U.S. pork, and the country has a 13 percent value-added tax on most agricultural imports. In addition, a collection of other non-tariff barriers has chronically suppressed U.S. pork exports to China over the years.

Iowa State University economist Dermot Hayes calculates that because of the 50 percent punitive tariffs, U.S. pork producers have lost $8 per hog, or more than $1 billion on an annualized basis. (Producers have lost an additional $12 per hog, collectively $1.5 billion in the industry, because of Mexico’s punitive 20 percent tariffs in retaliation for U.S. metals tariffs.) Hayes says that if China purchases at least 350,000 tons of U.S. pork each year for five years, the total deal would be worth approximately $3.5 billion in sales. According to Hayes, that would put a significant dent in the U.S.-China trade imbalance and create 5,250 new jobs in the United States. He notes that the timing for the purchases is good since China needs to import more pork to mitigate the impact of African Swine Fever on the Chinese pig herd.

The news media has reported that in an effort to end the trade dispute, China has offered to buy $1 trillion of U.S. goods over the next six years.



Biodiesel Market in EU Opens for U.S. Soybeans

Conservation practices required for U.S. soybean production meet EU sustainability standards, and biodiesel produced from documented soybeans can now be used in the EU, the European Commission has formally announced.

The EU requires biofuels to meet a set of sustainability criteria outlined in its Renewable Energy Directive (RED). The U.S. soy industry has its own sustainability guideline, the Soybean Sustainability Assurance Protocol (SSAP) that, with this announcement, the EU acknowledges meets its rigorous RED requirements.

Davie Stephens, a soybean grower from Clinton, Ky., and American Soybean Association (ASA) president said, “U.S. farmers have long prided themselves on adopting newer and better methods for producing high-quality soybeans that are grown responsibly and sustainably. The SSAP sets a high standard that demonstrates that commitment, and we are pleased that the EU Commission has recognized our efforts by opening the door for SSAP-certified soybeans to be used in EU biodiesel.”

The United States is the lead supplier of soybeans to the EU, and while this announcement applies only to soybeans exported for biodiesel, ASA sees it as a positive step for enhancing its EU market and validating the quality of the SSAP sustainability initiative. The EU’s decision will remain in place through at least July 1, 2021.



ACE calls on Senators to secure tangible documentation of Wheeler’s intentions before confirmation vote

American Coalition for Ethanol (ACE) CEO Brian Jennings sent a letter to U.S. Senators today encouraging they secure tangible documentation on two critically important ethanol issues from Environmental Protection Agency (EPA) Acting Administrator Andrew Wheeler before casting their confirmation vote: finalizing a legally-defensible Reid vapor pressure (RVP) rule to allow E15 use year-round before the summer driving season, and reallocating ethanol blending obligations waived for 2016 and 2017 through the Small Refinery Exemption (SRE) provision of the Renewable Fuel Standard (RFS).

“There is no better way to guarantee the RVP rule and reallocation of refinery waivers are addressed than by insisting Mr. Wheeler provide tangible evidence of his intentions on these issues prior to voting to confirm him,” the letter stated.

The government shutdown is not a credible excuse for a delay in the E15 rulemaking the letter explains, providing the example of how in eight days the United States Department of Agriculture (USDA) put forward a new food stamp work requirement proposal as a time in recent history that proves the Trump Administration can expedite high priority rulemakings.

“It has been more than 100 days since the President directed EPA to initiate a rulemaking to allow E15 use year-round,” the letter stated. “What is taking EPA so long to act?”

The RVP rule is particularly time-sensitive. Under EPA’s existing regulations, E15 cannot be sold in most areas of the country from June 1 to September 15, leaving just four short months from today to complete the rulemaking process. Unfortunately, EPA needlessly plans to combine the RVP rule with reforms to the way Renewable Identification Numbers (RINs) are handled under the RFS. The letter concludes by advising Senators that “Acting Administrator Wheeler should be encouraged to decouple RIN reforms from the RVP rule to ensure E15 can be offered for sale by June 1.”



Lindsay and Nutrien Ag Solutions Collaborate on Ag Water Use

Lindsay Corporation, Omaha, and Nutrien Ag Solutions, the retail division of Nutrien Ltd., the world's largest provider of crop inputs and services, Monday announced a partnership that will enable Nutrien Ag Solutions crop consultants (the company has over 3,500) to leverage Lindsay's remote irrigation management and scheduling platform to supplement Nutrien Ag Solutions' offerings. Through this partnership, Lindsay and Nutrien Ag Solutions will also automate the transfer of as-applied data from Lindsay's FieldNET Advisor to the Nutrien Ag Solutions digital platform to strengthen growers' ability to optimize water application amount and timing at every point throughout their fields.

Nutrien Ag Solutions provides crop input products and services that help growers make informed agronomic decisions. This collaboration means that Nutrien Ag Solutions can now add Lindsay's FieldNET Advisor to its digital and agronomic offerings, enabling growers to better streamline water usage as part of their overall field management plan. The Nutrien Ag Solutions digital platform leverages deep agronomic data science and leading-edge technology to solve real world problems for growers.

"Because growers depend on us to deliver solutions that optimize outcomes in the most sustainable way, we are committed to finding industry partners that share our mission of applying the best science and technology towards complex agricultural issues," said Sol Goldfarb, vice president, digital strategy, at Nutrien Ag Solutions. "Our partnership with Lindsay means growers can augment their knowledge and experience with real-time digital insights from FieldNET Advisor."

FieldNET Advisor, a solution available through Lindsay's FieldNET remote irrigation monitoring and control platform, is the world's first cloud-based irrigation scheduling tool that delivers automated, daily irrigation recommendations, helping growers decide precisely when, where and how much to irrigate.

"We are excited and honored to be partnering with Nutrien Ag Solutions," said Brian Magnusson, vice president of technology and innovation at Lindsay. "This collaboration will demonstrate the utility and effectiveness of FieldNET Advisor not only at the individual grower level, but also for the ag retail business. Due in large part to FieldNET Advisor's versatility, we expect to continue to see meaningful results across the precision ag value chain."

The data connection between the Nutrien Ag Solutions digital platform and Lindsay's FieldNET Advisor will save growers time by streamlining data collection and entry and will further improve the precision of the resulting crop zones, agronomic models and variable rate prescriptions. This data connection is expected to be available later in 2019.



Feed Survey estimates world feed production increased by 3 percent

The 2019 Alltech Global Feed Survey, released today, estimates that international feed tonnage has increased by a strong 3 percent to 1.103 billion metric tons of feed produced in 2018, exceeding 1 billion metric tons for the third consecutive year. The eighth edition of the annual survey includes data from 144 countries and nearly 30,000 feed mills. The feed industry has seen 14.6 percent growth over the past five years, equating to an average of 2.76 percent per annum. As the population grows, so does the middle class, which is well reflected in an increase in overall protein consumption.

The top eight countries are China, the U.S., Brazil, Russia, India, Mexico, Spain and Turkey. Together, they produce 55 percent of the world’s feed production and contain 59 percent of the world’s feed mills, and they can be viewed as an indicator of the trends in agriculture. Predominant growth came from the layer, broiler and dairy feed sectors.

“Alltech works together with feed mills, industry and government entities around the world to compile data and insights to provide an assessment of feed production each year,” said Dr. Mark Lyons, president and CEO of Alltech. “We are proud to present the eighth annual Alltech Global Feed Survey and share the results publicly to demonstrate the importance of the animal feed industry as we strive to provide for a planet of plenty.”

The Alltech Global Feed Survey assesses compound feed production and prices through information collected by Alltech’s global sales team and in partnership with local feed associations in the last quarter of 2018. It is an estimate and is intended to serve as an information resource for policymakers, decision-makers and industry stakeholders.

Regional results from the 2019 Alltech Global Feed Survey
·        North America: North America saw steady growth of 2 percent over last year due to an increase in the major species, with beef and broilers leading the growth at 3 percent each. The U.S. remained the second-largest feed-producing country globally, behind China. Feed prices in North America are the lowest globally across all species, and with the availability of land, water and other resources, the region is expected to remain a primary contributor to feed production.

·        Latin America: As a region, Latin America was relatively stagnant this year. Brazil remained the leader in feed production for the region and third overall globally. Brazil, Mexico and Argentina continue to produce the majority of feed in Latin America, with 76 percent of regional feed production. Brazil stayed flat, while Mexico and Argentina saw growth of 1 percent and 4 percent, respectively. Colombia’s feed production grew by approximately 8 percent, primarily due to an increase in pork and egg production. Several countries saw a decline in feed production, such as Venezuela (-27 percent), El Salvador (-16 percent) and Chile (-8 percent).

·        Europe: Europe saw an overall growth of about 4 percent over last year, making it the second-fastest-growing region in the survey, resulting from feed production increases in layer (7 percent), broiler (5 percent), aquaculture (5 percent), dairy (4 percent) and pig (3 percent). Beef was the only primary protein species to decline, though it was less than 1 percent.

Much of the region’s growth can be attributed to smaller countries, such as Turkmenistan, Macedonia, Azerbaijan, Montenegro, Kazakhstan and Uzbekistan, which all saw increases in overall production estimates of 20 percent or more. Additionally, larger-producing countries like Russia, Spain and Turkey saw strong increases in feed production estimates, which added to the overall production growth.

·        Asia-Pacific: The Asia-Pacific region is home to several of the top 10 feed-producing countries, including China, India and Japan, and accounted for more than 36 percent of the world’s feed tonnage. China maintained status as the top feed-producing country in the world with 187.89 million metric tons, with 10 million metric tons more than the U.S. Increased production for Asia-Pacific came from India with 13 percent due to growth in dairy, layer and broiler feeds. Other countries that demonstrated higher growth variance included Pakistan, Myanmar and Laos. Southeast Asia’s feed production represented over 20 percent of the Asia-Pacific region’s feed production, with Indonesia, Vietnam, the Philippines and Thailand contributing to 93 percent of Southeast Asia’s feed production.

·        Africa: Africa continued strong growth with a 5 percent increase in overall feed production, and no country in the region saw a decline. Morocco demonstrated strong growth across dairy, beef, layers, broilers and turkeys. The areas that declined for feed production were equine (-4 percent) and pets (-14 percent). These two areas represent a very small proportion of Africa’s overall production, so the impact is very minimal. Most of the major animal production species in ruminant and poultry contributed to the overall growth of the region.

Notable species results from the 2019 Alltech Global Feed Survey
·        In the poultry industry, major growth areas for layer feed included Europe, Latin America and Asia-Pacific. In Europe, Poland and Uzbekistan each saw growth of around 200,000 metric tons. Latin America had increases in Colombia, Peru, Brazil and Mexico. In the Asia-Pacific region, South Korea, India and Indonesia all saw growth of several hundred metric tons. North America experienced overall growth of 2 percent, in which both the U.S. and Canada saw increased production. Africa saw a small decrease in layer production due to declines in both Egypt and Seychelles.

Globally, broiler production increased by approximately 3 percent in 2018. There was growth in all regions, except for Latin America, in which a very small decline was observed. Africa showed 9 percent growth, demonstrating an overall trend that as populations grow and become wealthier, interest in protein — particularly in palatable chicken — does as well.

·        Pig feed production saw an increase of nearly 1 percent in 2018. The primary producing region for pig feed is Asia-Pacific, but this was also the only region that saw a decline in pig feed production as Mongolia, Vietnam, China, New Zealand and Japan experienced decreases. From a tonnage standpoint, Europe saw the largest growth at approximately 2.2 million metric tons. Russia and Spain accounted for the majority, while Finland, Denmark, France and Poland also contributed. Latin America saw the greatest growth in pig feed as a percentage at 5 percent, with the largest growth seen in Mexico and Argentina.

·        Global dairy feed production saw growth in North American, Europe and Africa, while Latin America remained flat. Europe, a global leader in dairy production, grew on average by approximately 4 percent. The largest increase was in Turkey with 10 percent, while Ireland, Russia and the U.K. also contributed to the region’s growth. Africa’s growth was primarily due to a significant increase in both Morocco and Nigeria.  

·        North America has always led beef feed production and continues to do so with an increase of 3 percent in 2018. Europe saw a small decline at barely 1 percent and remained in second place. Latin America saw strong growth of approximately 8 percent, with Mexico and Argentina as the primary contributors. As a result, the Latin American region has taken third place in beef feed production, moving ahead of the Asia-Pacific region.  China and Australia both saw growth in the Asia-Pacific region but could not offset the overall decline in countries such as Bangladesh, Mongolia, Indonesia, Taiwan, Vietnam and Pakistan.

·        Overall, aquaculture feeds showed growth of 4 percent over last year. This was primarily attributed to strong increases in the Asia-Pacific and European regions. The traditional Asia-Pacific leaders in aquaculture, Vietnam, India and Indonesia, combined for an additional 1.58 million metric tons of feed in the region. China, the region’s leader, also saw an increase of 1 percent over last year. The primary European leaders either experienced strong growth or remained relatively flat. Those that did grow included Norway and Turkey, both at 7 percent, and Spain at a substantial 31 percent. The other regions remained relatively flat or saw only a 1 percent increase or decrease in feed production, demonstrating the continuity of the industry as a whole.

·        The pet food sector saw growth of approximately 1 percent, primarily attributed to an increase in the Asia-Pacific region, which was offset by a decrease in the Latin American and African regions. North America and the Middle East both remained relatively flat. In previous surveys, Europe had been the top-producing region for pet food production, but after a reassessment of 2017 numbers and despite growth of 2 percent, it ranks just behind North America. Europe is estimated in 2018 to have produced 8.6 million metric tons in total, approximately 200,000 behind North America. Africa saw a small decrease in production, but the actual tonnage is quite small compared to many of the other regions. The Latin American region experienced a decrease of about 5 percent, which was spread across several countries, including Chile, Venezuela, El Salvador, Colombia, Argentina and Ecuador.

To access more data and insights from the 2019 Alltech Global Feed Survey, including the results booklet, an interactive global map and a pre-recorded video presentation of the results by Dr. Mark Lyons, visit alltechfeedsurvey.com.



NFU Board Urges Significant Strengthening of the Family Farm Safety Net

As the slump in farm commodity prices persists and trade disputes compound these market challenges, family farmers’ and ranchers’ economic security is at significant risk, according to the National Farmers Union (NFU) Board of Directors. The NFU Board passed a resolution calling on the administration and Congress to work together to strengthen the farm safety net to help farm families weather the coming years.

“Economic challenges have forced many farmers into significant financial strain, particularly beginning farmers and ranchers who have not had the ability to build up equity,” said the NFU Board. “Despite their best efforts, many farmers are struggling to stay afloat. We urge Congress and the Administration to work together to find solutions that will provide significant, long-term answers to strengthen the farm safety net.”

The NFU Board noted that net farm income in 2018 is estimated to be nearly 50 percent less than 2013 levels, and that median farm income is estimated to be negative $1,548, meaning a majority of farms—farms of all sizes—lost money last year. It said that ongoing disputes with China and other key trading partners caused further damage to U.S. agricultural markets.

“The short-term assistance provided through the United States Department of Agriculture’s Market Facilitation Program was appreciated but fails to provide long-term relief,” said the NFU Board. “Regardless of when and how existing trade disputes are resolved, it will take decades to overcome the self-inflicted damage to our markets.”

The NFU Board added that the recently passed farm bill provides meaningful but modest relief. “Changes to Price Loss Coverage and Agriculture Risk Coverage will improve each program’s effectiveness and will eventually strengthen the levels of support they provide. The Dairy Margin Coverage program is a significant improvement over its predecessor, the Margin Protection Program,” it said.

“However, in neither case do the changes reflect the severity of existing market challenges and the immediacy of the financial crisis facing family farmers and ranchers,” it added.

In addition to bolstering the safety net, the NFU Board urged Congress to examine options to meaningfully address chronic oversupply in the marketplace, which has been particularly damaging to U.S. dairy and grains sectors.