Wednesday January 30 Ag News

Platte Valley Cattlemen 2019 Banquet
Lucas Luckey, PVC President
It’s that time of year again and the Platte Valley Cattlemen are anxiously planning our 2019 Banquet which will be held Saturday, February 16th at Ramada Inn River’s Edge Convention Center. We are looking forward to an enjoyable night and another outstanding banquet.  Our entertainment this year will be provided by Gayle Becware.

Our annual Banquet is our major fund raiser for the. In the past, sponsors’ dollars have enabled us to promote “Beef Month” in May, ensure quality speakers for our monthly meetings, offer an educational tour, promote 4-H and FFA programs at the county fairs, and assist in awarding scholarships. In 2017, we were able to award two $1,000.00 college scholarships and with continued support, we hope to offer two (or more) again this year.

I look forward to seeing you on Saturday, February 16th!



National Biodiesel Foundation Elects New Directors

The National Biodiesel Foundation elected three new directors: Danielle Brannan, New Leaf Biofuels; Mike Devine, World Energy; and Chris Hill, American Soybean Association to the Board last week during the National Biodiesel Conference & Expo.

“I believe the Foundation is critical to educating the public about biodiesel and getting it into the marketplace," says Brannan. "Events and education forums, such as the New York City Congressional Tour coming this Spring, help move the industry forward.”

“In 2019, we look forward to continuing to support and fund partnerships working on research and sustainability projects showing the benefits and quality of biodiesel. With support from the industry, we plan to sponsor activities like land use change research, diesel technician training, and student education grants among other things,” added Executive Director Tom Verry.

In addition to the three new directors, biodiesel industry leaders currently serving on the Foundation’s Board include:
    Jeff Lynn, NBF President, Illinois Soybean Association
    Mark Caspers, NBF Vice President, Nebraska Soybean Board
    Lindsay Fitzgerald, NBF Secretary and Treasurer, Renewable Energy Group
    Matt Jaeger, Emergent Green Energy
    Rob Shaffer, American Soybean Association
    David Womack, Tennessee Soybean Promotion Board
    Dave Walton, Iowa Soybean Association

The Foundation’s mission is to accomplish outreach, education, research and demonstration activities for the advancement of biodiesel. The Foundation works closely with the National Biodiesel Board.

Biodiesel is a renewable, clean-burning diesel replacement that is reducing U.S. dependence on foreign petroleum, creating jobs and improving the environment. The Foundation works with industry supporting young scientists with grants to attend and participate in research and sustainability projects, showcasing biodiesel and bioheat use in urban communities, and partnering with Universities to conduct research and update modeling (such as the global economic database GTAP).



USDA Reschedules Reports Affected by Lapse in Federal Funding

The USDA’s National Agricultural Statistics Service’s (NASS) Agricultural Statistics Board has begun rescheduling reports that were affected by the lapse in federal funding. During the lapse, NASS was not able to collect data nor issue reports. The following reports have been rescheduled and others will be announced as soon as they are determined:
    Broiler Hatchery (Jan. 30) is delayed
    Egg Products (Jan. 30) is delayed
    Agricultural Prices (Dec. 27) will be released Jan. 31 at 3 p.m. ET
    Poultry Slaughter (Dec. 26) will be released Feb. 1 at 3 p.m. ET*
    Peanut Stocks and Processing (Dec. 28) will be released Feb. 1 at 3 p.m. ET
    Cotton System (Jan. 2) will be released Feb. 4 at 3 p.m. ET
    Fats & Oils (Jan. 2) will be released Feb. 4 at 3 p.m. ET
    Grain Crushings (Jan. 2) will be released Feb. 4 at 3 p.m. ET
    Dairy Products (Jan. 3) will be released Feb. 4 at 3 p.m. ET
    Egg Products (Dec. 28) will be released Feb. 5 at 3 p.m. ET
    Field Crops Final Estimates (Dec. 28) will be released Feb. 6 at 3 p.m. ET*
    Rice Stocks Final Estimates (Dec. 28) will be released Feb. 6 at 3 p.m. ET*
    Stocks of Grain, Oilseed, and Hay Final Estimates (Dec. 28) will be released Feb. 6 at 3 p.m. ET*
    Crop Prod. (Jan. 11) – estimates will be included in Crop Prod. to be released Feb. 8 at Noon ET
    Crop Production Annual (Jan. 11) will be released Feb. 8 at Noon ET
    Grain Stocks (Jan. 11) will be released Feb. 8 at Noon ET
    Rice Stocks (Jan. 11) will be released Feb. 8 at Noon ET
    Winter Wheat and Canola Seedings (Jan. 11) will be released Feb. 8 at Noon ET
    Peanut Prices (Dec. 28*; Jan. 4*, 11, 18, 25; Feb. 1) combined report on Feb. 8 at 3 p.m. ET
    Broiler Hatchery (Feb. 6) will be released Feb. 8 at 3 p.m. ET
    Milk Production (Jan. 23) will be released Feb. 20 at 3 p.m. ET
    Agricultural Prices (Jan. 31) will be released Feb. 20 at 3 p.m. ET
    Vegetables Final Estimates (Dec. 28) will be released Feb. 21 at 3 p.m. ET*
    Cattle on Feed (Jan. 25) will be released Feb. 22 at 3 p.m. ET
    Cotton System (Feb. 1) will be released Feb. 22 at 3 p.m. ET
    Fats and Oils (Feb. 1) will be released Feb. 22 at 3 p.m. ET
    Grain Crushings (Feb. 1) will be released Feb. 22 at 3 p.m. ET
    Cattle (Jan. 31) will be released Feb. 28 at 3 p.m. ET
    Sheep and Goats (Jan. 31) will be released Feb. 28 at 3 p.m. ET
    Flour Milling (Feb. 1) will be released March 1 at 3 p.m. ET
    Peanut Stocks and Processing (Jan. 29) – estimates will be incl. in the report March 6 at 3 p.m. ET
    Peanut Stocks and Processing (Feb.27) will be released March 6 at 3 p.m. ET
    Cattle on Feed (Feb. 22) will be released March 8 at 3 p.m. ET
    Potatoes and Sweet Potatoes Final Estimates (Jan. 31) will be released March 12 at 3 p.m. ET*
    Milk Production (Feb. 21) will be released March 12 at 3 p.m. ET
    Citrus Final Estimates (Dec. 28) will be released March 12 at 3 p.m. ET*
    Noncitrus Fruits and Nuts Final Estimates (Dec. 28) will be released March 12 at 3 p.m. ET*
    State Stories (Jan. 3) will not be released.
    State Stories (Jan. 29) will not be released.
    Cotton Ginnings (Jan. 11) will not be released.
    Cotton Ginnings (Jan. 23) will not be released.
    2017 Census of Agriculture (Feb. 21) will be delayed. A new date has not yet been determined.

* QuickStats only.

All NASS reports will be available at www.nass.usda.gov/Publications. 



USGC, Growth Energy Submit Comments to Province of Ontario on E15 by 2025

This week, the U.S. Grains Council (USGC) and Growth Energy jointly submitted comments to the Canadian Province of Ontario supporting the expansion of biofuels blending in the Made-in-Ontario Environment Plan. The comments applaud Ontario's commitment to implementing a 15 percent renewable content in gasoline by 2025 and highlight the retail success of 15 percent ethanol-blended fuel, or E15.

"For decades now, North American farmers and ethanol producers have continued to benefit from tariff-free borders," the comments noted. "With an existing North American supply chain, Ontario can rest assured that the increase in demand from a move to 15 percent ethanol will be met by this vibrant marketplace. Collectively, the North American industry is poised to assist Ontario attain its ambitious climate goals and to support this ambitious provincial move."

The comments also thanked Ontario's Ministry of the Environment for taking into consideration our previously submitted comments, from 2017 and 2018, on the environmental benefits of higher level ethanol blends, such as E15, in their plan. Doing so offers environmental and economic benefits to the people of Ontario and will help to achieve Canada's long-term climate goals.

"We appreciate the ministry taking our previous comments of March 2017 and January 2018 into account and strongly support the proposal to increase the ethanol content of gasoline to 15 percent by 2025. As we noted in our earlier comments, increasing ethanol concentrations in fuel presents tremendous benefits to the public in the form of lower GHG emissions, lower levels of other pollutants, improved fuel properties (cleaner and cooler burning), and economic benefits to Canada’s critical agricultural economy."



Weekly Ethanol Production for 1/25/2019

Here is the weekly ethanol supply-and-demand data for the week ended 1/25/2019.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production decreased 1.8% (down 19,000 barrels per day, or b/d) to an average of 1.012 million b/d—or 42.50 million gallons daily. The four-week average for ethanol production remained at 1.023 million b/d for an annualized rate of 15.68 billion gallons. Weekly production was 2.7% lower than the level a year ago, while the four-week average was 1.6% lower.

Stocks of ethanol increased 2.1% to a 15-week high of 24.0 million barrels. The stocks build occurred primarily on the Gulf Coast.

There were zero imports recorded for the eleventh 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 supplied to the market vaulted 7.8% to a 20-week high of 9.564 million b/d (401.7 million gallons per day), equivalent to 146.62 billion gallons annualized. Refiner/blender input of ethanol slid 1.5% to 870,000 b/d—equivalent to 13.34 billion gallons annualized. Still, ethanol blending remains higher on a weekly (1.4%) and 4-week average (2.8%) basis than year ago levels.

Expressed as a percentage of daily gasoline demand, daily ethanol production declined to 10.58%.



All Fertilizers Higher Last Full Week of January

Retail prices of all eight of the major fertilizers moved higher the last full week of January 2019, according to retailers surveyed by DTN. It was the second week in a row that prices for all fertilizers were higher.

While prices are higher compared to last month, none were up a significant amount, which DTN defines as a price move of 5% or more.

DAP had an average price of $512 per ton, up $5/ton; MAP $535/ton, up $2/ton; potash $383/ton, up $4/ton; urea $409/ton, up $2/ton; 10-34-0 $467/ton, up $10/ton; anhydrous $584/ton, up $16/ton; UAN28 $270/ton, up $4/ton; and UAN32 $313/ton, up $10/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.36/lb.N, UAN28 $0.48/lb.N and UAN32 $0.49/lb.N.

All eight of the major fertilizers are now higher compared to last year. MAP is 9% more expensive, both DAP and potash are 12% higher, 10-34-0 is 13% more expensive, urea is 16% higher, anhydrous is 19% more expensive and both UAN28 and UAN32 are now 20% higher compared to last year.



Geaux Time: Cattle Industry Convention and NCBA Trade Show Kicks Off in New Orleans

Nearly 8,000 cattlemen and cattlewomen were on-hand in New Orleans for the official start of the 2019 Cattle Industry Convention & NCBA Trade Show. The event runs through February 2, 2019, bringing together producers from across the country.

“Every year the Cattle Industry Convention & NCBA Trade Show hosts members from every segment of the beef industry,” said NCBA President Kevin Kester. “Not only is the event a great opportunity for attendees to network and learn about the newest technology and science to improve their operations, but it’s also when we set our policy priorities for the next year.”

Hall of Fame NFL quarterback Terry Bradshaw delivered the keynote address at the Opening General Session. In addition to his football and broadcasting career, Bradshaw is a gospel/country singer, best-selling author and breeder of championship quarter horses.

Attendees at the Convention will have the chance to visit the 6.5-acre trade show and attend a wide range of engaging events. This includes live cattle handling demonstrations and the popular Cattlemen’s College, a series of educational sessions that cover topics like herd management, cattle health, and improving profitability. Cattlemen’s College is famous for stimulating and thought-provoking sessions that can help generate high returns for producers’ operations.

Other highlights this week include the D.C. public policy issues update, NCBA policy committee meetings, the “Mardi Gras Masquerade” hosted at Mardi Gras World, and the Cowboy Concert Series featuring music stars Big and Rich. 

The Convention will wrap up Saturday morning with a meeting of the NCBA’s Board of Directors, where official public policy positions will be set for the coming year.

Holding their meetings at this event were the National Cattlemen’s Beef Association, the Cattlemen’s Beef Board, the American National CattleWomen, CattleFax and the National Cattlemen’s Foundation.



Export Skepticism Not Warranted as Global Market is Key for US Protein in 2019

Per capita animal protein consumption in the U.S. will climb to an all-time high in 2019, surpassing the previous record set in 2006, prior to the 2008 financial crisis and the run-up in feed costs. However, the animal protein sector is entering a period of transition as four consecutive years of significant domestic consumption growth is now beginning to pressure prices and producers’ bottom lines. Export growth will be key for U.S. beef, pork and chicken producers as growing meat supplies and processing capacity outstrip domestic demand, according to a new report from CoBank’s Knowledge Exchange Division.

“The domestic consumption growth rate animal protein has experienced over the last five years is expected to plateau soon,” said Will Sawyer, animal protein economist with CoBank’s KED. “With the cow herd at multi-year highs and pork and poultry processors expanding capacity, exports will likely underpin further industry expansion for the U.S. in the years ahead.”

With U.S. consumers struggling to increase their appetite for meat and poultry going forward, and with significantly higher economic and consumption growth abroad, the U.S. animal protein sectors will need to increase their focus on international markets for growth.

In 2018, the U.S. exported 12 percent of beef production, 16 percent of chicken production and 23 percent of pork production. While these figures are far higher than where the industry was 20 years ago, further growth in exports will be needed if U.S. producers want to expand production in the coming years.

“While the need for increasing exports is clear, it’s frequently met with concern or skepticism among producers and all links throughout the supply chain,” said Sawyer. “Concerns lie primarily in the fear that the more exports play a role in supply and demand, the more exposure producers and industry participants have to increased market volatility and lower margins.”
 
Bigger Risk, Bigger Reward
Greater reliance on export markets has resulted in higher prices for the animal protein sectors in other exporting nations, including Australia, Brazil and Canada. However, analysis shows that greater profitability has offset that price volatility for beef, pork and poultry producers in each of those countries, despite declining domestic consumption in both Australia and Canada.

In the comparison of Brazilian poultry to U.S. poultry, Brazilian poultry price volatility over the last fifteen years has averaged approximately 15 percent per year, while in the U.S. it has been slightly less at around 12 percent. Conversely, over that same time period Brazil’s poultry producers have seen an average increase in prices of six percent, while prices for U.S. producers have increased just 2.6 percent.

“In other words, Brazilian producers experience just 2.5 percent of price volatility for every percent increase in prices while U.S. producers endure 4.5 percent of price volatility for the same degree of price change,” said Sawyer.

This superior risk-to-reward level is also true for Canadian pork and Australian beef relative to the U.S. In the case of Australia, fed cattle prices have been slightly less volatile than what U.S. producers have experienced over the last fifteen years, all while having a slightly higher rate of return. This is significant as Australia exported 71 percent of its production in 2018 while the U.S. exported just 12 percent, which were all-time high levels for both markets.

Growth opportunities involving exports can carry significant risks as demonstrated during recent trade disputes between the U.S. and some of the most important international customers for U.S. animal protein. However, those who accept these risks are often rewarded, according to Sawyer.

“Profitable growth has always been at the core of the industry, and has enabled producers and processors to recover from the historic volatility and costs from 2007 through 2012,” added Sawyer. “The groundwork has already been laid from the supply chain to industry representation to let trade drive the industry forward over the next decade. Long-term, exports will be the key driver for further expansion across the animal protein sector.”

With meat supplies back at all-time highs, opportunity for growth lies in international markets, Sawyer concludes. The increased market volatility that comes with greater exposure to export markets is offset by higher prices and improved profitability for producers.



Farmers, Ranchers Need USMCA
American Farm Bureau Federation President Zippy Duvall

“Farmers need the United States-Mexico-Canada Agreement, and the sooner the better. U.S. agriculture needs strong trade agreements to access customers around the world and grow our farm economy. We are grateful for the Administration’s work to move this agreement forward. We urge Congress to finish the job and  approve the USMCA quickly.

“USMCA’s predecessor, NAFTA, has boosted agricultural exports to Mexico and Canada dramatically – we’ve gone from $8.9 billion to $39 billion in the 25 years since NAFTA went into effect. That’s an obvious victory in boosting our industry’s strong trade surplus with the rest of the world.

“Steel and aluminum disputes with our North American neighbors and other trading partners will be a challenge for farmers and ranchers until those disagreements are resolved. We urge the Administration to resolve those outstanding issues as soon as possible. Farmers and ranchers need fair and open markets.”



NMPF, IDFA Support Legislation Allowing Whole Milk in School Meals

The National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA) welcome the introduction of legislation sponsored by Reps. Glenn Thompson (R-PA) and Collin Peterson (D-MN), chairman of the House Agriculture Committee, allowing whole milk in school nutrition programs.

The Whole Milk for Healthy Kids Act of 2019 (H.R. 832) has eight other co-sponsors, including Rep. Mike Conaway (R-TX), ranking Republican on the House Agriculture Committee.

Adding whole milk to school menus reflects research showing that such products benefit children and gives school administrators one more tool with which to develop healthy eating habits.

“Whole milk provides yet another way for children to receive dairy’s nutritional benefits as part of a healthy eating pattern,” said Jim Mulhern, president and CEO of NMPF. “This bill encourages the proper nutrition they need to lead healthy lives.”

“We thank Rep. Thompson for his leadership and Chairman Peterson for being an original co-sponsor on this bill to allow schools more flexibility to offer the same types of milk that children and teens enjoy at home. Providing expanded milk options will help ensure that students get the nutrients that milk uniquely provides, including calcium, vitamin D and potassium,” said Michael Dykes, D.V.M., president and CEO of IDFA.



Study Shows Trade Agreements by Competitors will Threaten U.S. Dairy Exports to Japan

A study released today by the U.S. Dairy Export Council projects that new trade agreements between Japan and other countries will put U.S. dairy exports at a competitive disadvantage, resulting in lost U.S. sales of $5.4 billion over 21 years.

The Japanese dairy market, the fourth-largest export destination for U.S. dairy exports, is expected to continue to grow in years to come. With a level playing field, the United States could roughly double its market share, according to the study, which was conducted by Tokyo-based Meros Consulting.

However, without swift and effective action by the United States to secure a strong trade treaty with Japan that exceeds Japan’s agreements with Australia, New Zealand and the European Union, the United States could see its market share drop in half over the next decade.

Australia and New Zealand have the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in place with Japan already, and as of this Friday, Europe’s agreement with Japan will take effect, too. Without a strong U.S.-Japan trade treaty, competitors will seize a cumulative $1.3 billion in dairy sales over the next decade that would otherwise have been supplied from the United States, a toll that climbs to $5.4 billion once the CPTPP and Japan-EU agreements are fully implemented.

“These agreements will give our competition a significant economic advantage that will enable them to increase their market share in Japan, costing the U.S. dairy industry billions of dollars in lost sales,” said Tom Vilsack, USDEC president and CEO. “U.S. dairy farmers and processors strongly support the Administration’s launch of trade talks with Japan. We hope this report provides fresh ammunition to our negotiators about why a strong U.S.-Japan agreement is so important for American agriculture.”

“U.S. dairy farmers are facing economic hardships, and expanding opportunities overseas is the best way to counter that,” said Jim Mulhern, president and CEO of the National Milk Producers Federation (NMPF). “A trade deal with Japan that significantly expands dairy access would make 2019 a brighter year.” 



Summit panel to explore how to engage influencers about animal agriculture

Early registration rates are available through Friday, February 1 for the Animal Agriculture Alliance’s 2019 Stakeholders Summit themed, A Seat At The Table. The event will be held May 8-9 at the InterContinental at the Plaza Hotel in Kansas City, Missouri. To view the agenda and register, visit https://www.animalagalliance.org/summit.

The Summit will feature a panel titled, “Conversations Around the Table: Engaging Influencers” with Hana Bieliauskas, digital practice lead at Inspire PR Group, Ruth Woiwode, PhD, manager of livestock audit services at Food Safety Net Services, Lauren Lane, owner and blogger at Lauren Lane Culinarian and Adriane Heins of Heins Family Farms. The panelists will explore how to effectively engage with influencers about animal agriculture and connect with consumers about modern food production. Andy Vance of Feedstuffs will moderate the panel.

“Engaging opinion leaders about animal agriculture can be tricky, but is one of the most effective ways to bridge the communication gap between farm and fork,” said Hannah Thompson-Weeman, Alliance vice president of communications. “Our panel of experts will be sharing personal experiences, tips and lessons learned from influencer farm tours and other tactics that can help attendees plan their own influencer engagement.”