Wednesday January 9 Ag News

2019-20 NE Legislative Committees

Agriculture – Halloran, Blood, Chambers, Slama, Moser, Lathrop, Albrecht, B. Hansen

Appropriations – Stinner, Bolz, Hilkemann, Erdman, Wishart, McDonnell, Dorn, Clements, Vargas

Banking, Commerce and Insurance – Williams, Kolterman, Howard, Quick, McCollister, Lindstrom, Gragert, La Grone

Business and Labor – Hansen, Chambers, Slama, Crawford, Lathrop, Halloran, B. Hansen

Education – Groene, Morfeld, Kolowski, Brewer, Pansing Brooks, Linehan, Murman, Walz

General Affairs – Briese, Blood, Wayne, Albrecht, Moser, Arch, Lowe, Hunt

Government, Military and Veterans Affairs – Brewer, M. Hansen, Kolowski, Gragert, Hilgers, Hunt, Lowe, Blood

Health and Human Services – Howard, Williams, Walz, Arch, Murman, B. Hansen, Cavanaugh

Judiciary – Lathrop, Slama, Pansing Brooks, Chambers, Brandt, Morfeld, Wayne, Deboer

Natural Resources – Hughes, Bostelman, Quick, Albrecht, Geist, La Grone, Halloran, Moser

Nebraska Retirement Systems – Kolterman, Lindstrom, Groene, Bolz, Kolowski

Revenue – Linehan, Friesen, Crawford, Lindstrom, Groene, Kolterman, McCollister, Briese

Transportation and Telecommunications – Friesen, Geist, Deboer, Brandt, Bostelman, Cavanaugh, Hughes, Hilgers

Urban Affairs – Wayne, Lowe, M. Hansen, Arch, Briese, Crawford, Hunt

Executive Board of the Legislature – Hilgers (Chair), Vargas (Vice-Chair), Kolterman, Bolz, Chambers, McCollister, Hughes, Lowe

Rules – Crawford, Lathrop, Erdman, M. Hansen, Howard



Lindsay Corporation Reports Fiscal 2019 First Quarter Results

Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter ended November 30, 2018.

First Quarter Summary
Revenues for the first quarter of fiscal 2019 were $112.0 million, a decrease of $12.5 million, or 10 percent, compared to revenues of $124.5 million in the prior year's first quarter. Revenues decreased $14.0 million as a result of the completion of previously announced business divestitures.

Net earnings for the quarter were $1.2 million and diluted earnings per share were $0.11, compared with net earnings of $3.2 million and diluted earnings per share of $0.30 for the same period in the prior year. Net earnings for the quarter were reduced by after-tax costs of $2.9 million, or $0.27 per diluted share, related to the Company's Foundation for Growth initiative. Adjusted net earnings for the first quarter were $4.1 million, or $0.38 per diluted share.

"As expected, market headwinds in North America constrained demand for irrigation equipment in our first quarter; however disciplined price management in response to higher input costs led to revenue growth for the quarter," said Tim Hassinger, President and Chief Executive Officer. "We continue to make progress on our Foundation for Growth initiative, and during the quarter we completed the last of our previously announced divestitures."

Segment Results
Irrigation segment revenues for the first quarter of fiscal 2019 were $87.6 million, a decrease of $15.8 million, or 15 percent, compared to $103.4 million in the prior year's first quarter. Excluding the impact of the divestitures, North America irrigation revenues of $56.5 million increased $2.7 million, or 5 percent, compared to the prior year. International irrigation revenues of $31.1 million decreased $4.5 million, or 13 percent, compared to the prior year. Differences in foreign currency exchange rates accounted for $2.4 million of the decline.

Irrigation segment operating margin was 8.9 percent of sales in the first quarter (9.0 percent adjusted)1, compared to 7.6 percent of sales in the prior year. Improved operating margin resulted from improvement in North America, supported by the impact of the divestitures as well as price realization and a more favorable product mix.

Infrastructure segment revenues for the first quarter of fiscal 2019 were $24.3 million, an increase of $3.1 million, or 15 percent, compared to $21.2 million in the prior year's first quarter. The increase resulted from higher Road Zipper System® sales which were partially offset by lower sales of road safety products.

Infrastructure segment operating margin was 17.1 percent of sales in the first quarter (17.6 percent adjusted), compared to 15.5 percent of sales in the first quarter of the prior year. Improved operating margin resulted from a more favorable product mix and lower operating costs compared to the prior year.

The backlog of unshipped orders at November 30, 2018 was $48.9 million, compared with $80.3 million at November 30, 2017 reflecting a decrease in both the Irrigation and Infrastructure backlogs. Approximately $13.0 million of the backlog reduction resulted from the business divestitures and $14.0 million is from a large infrastructure project completed in the prior fiscal year.

Outlook
"Passage of the 2018 farm bill provides a source of modest optimism that North America irrigation market conditions will see improvement," said Mr. Hassinger. "In the international markets, we are seeing signs of improved conditions in Brazil as well as increased interest in developing markets."

Mr. Hassinger added, "We continue to build a solid pipeline of Road Zipper System projects to support growth in the infrastructure business; however, the long lead times required to complete these projects can impact the timing of when we will realize the value from the increased focus on this business."

Lindsay Corporation Announces Quarterly Dividend
Lindsay Corporation announced that its Board of Directors has declared a regular quarterly cash dividend of $0.31 per share, payable February 28, 2019, to shareholders of record at the close of business on February 14, 2019.  At October 19, 2018, Lindsay Corporation had approximately 10.8 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.



ICGA Policy Priorities for 2019

The Iowa Corn Growers Association (ICGA), one of the most effective, longest-standing agricultural associations in the country, released today its final list of state and federal policy priorities for the upcoming year.

“Each year, ICGA members set a list of legislative priorities on both the state and federal levels by completing a policy survey, discussion at the roundtables, and adopting policy at the Grassroots Summit,” said ICGA President Curt Mether, a farmer from Logan. “ICGA provides several opportunities throughout the year to get engaged and voice your opinion on different issues.”

2019 ICGA state priorities, listed in alphabetical order:
-    Conservation/Water Quality: Maintain legislative funding stream for Iowa Nutrient Reduction Strategy
-    Ethanol: Obtain funding for renewable infrastructure cost-share program (RFIP)
-    Livestock: Support existing regulatory framework for the livestock industry
-    Research: Ag Extension and Diagnostic Lab funding
-    Taxes: Protect critical tax credits (Section 179 and biofuels)

2019 ICGA federal priorities, listed in alphabetical order:
-    Ethanol: Retain the Renewable Fuel Standard and reduce regulatory barriers for higher blends
-    Risk Management: Protect crop insurance funding during the implementation and duration of the Farm Bill
-    Trade: Expand new and protect existing bilateral and multilateral trade agreements
-    Trade: Protect/expand funding for Market Access Program (MAP) and Foreign Market Development (FMD) during the implementation and duration of the Farm Bill
-    Transportation Infrastructure: Maintenance and upgrades to our inland waterways system

“I urge all members to attend ICGA’s Day on the Hill on January 22 and March 27 or visit with your local legislators to have your voice heard and to share your priorities with state policy makers,” stated Mether. “Finally, I encourage you to invite your family and neighbors to join ICGA, so we can continue to fight together for agriculture and reach our goal of 10,000 members. Your engagement and voice matter as that determines all our success.”

The complete 2019 ICGA policy resolution book is available at www.iowacorn.org/policybook or in hard copy for free upon request by emailing corninfo@iowacorn.org or calling 515-225-9242.



Federal Judge Rules Iowa "Ag-Gag" Law Unconstitutional Limit on Free Speech

A federal judge in Iowa has thrown out a state law Iowa lawmakers created to try to block undercover activist investigations into the state's livestock operations.

The 2012 law, coming after at least a couple of widely publicized investigations into hog operations, made it illegal to come on a livestock facility under false pretenses, or lie on a job application to work for a livestock operation. The law was meant to effectively criminalize undercover investigations on livestock farms.

A lawsuit in the Southern District of Iowa was filed challenging the law by Animal Legal Defense Fund, Iowa Citizens for Community Improvement, Bailing Out Benji, People for the Ethical Treatment of Animals and the Center for Food Safety. Defendants were Iowa Gov. Kim Reynolds, state Attorney General Tom Miller, and Montgomery County (IA) Attorney Bruce Swanson.

Both sides asked U.S. District Court Judge James Gritzner for a summary ruling. Gritzner ruled for plaintiffs in the case, ruling that the law was too broad in scope and the right to make the kinds of false statements prohibited under the Iowa law, "whether they be investigative deceptions or innocuous lies -- is protected by our country's guarantee of free speech and expression."

Iowa joined several states in adopting what opponents call "ag-gag" laws because of videos generated by such investigations showing abusive behavior. Similar cases have overturned laws in Idaho and Utah in recent years, but a Wyoming law has been upheld in court. Similar cases are still working through courts in North Carolina. Gritzner pointed in his ruling to the overturning of the Idaho law and similarities with the Iowa statute.

The Iowa Attorney General's office is studying the ruling and considering whether to appeal.

The Iowa Pork Producers Association was disappointed in the court decision, saying the law was meant to protect farmers from "those who would use false pretenses to do harm to the farmers' reputation and to their farm animals."

The pork group added, "It was never the intent of farmers to infringe on others' constitutional rights; but we also were relying on the courts to help us protect our rights to lawfully conduct our businesses and care for our animals."

Further, the pork association said Iowa farmers "will continue to properly care for their animals and provide safe and secure working conditions for their employees. And, they will fight those who try to destroy or attack their livelihoods one case at a time, if necessary."



Gaesser, MacDonald Join SfL Board of Directors

Former American Soybean Association (ASA) Chairman Ray Gaesser and Gary MacDonald, a former vice president with equipment manufacturer MacDon Industries, have joined the Solutions from the Land (SfL) board of directors.

Gaesser is the owner and manager of Gaesser Farms, a 6,000-acre operation near Corning, IA, that produces corn for ethanol and soybeans for seed. Over the past 40 years, he has been working to adopt modern technology and sustainability practices into his farming operation, including operating at 100 percent no-till and integrating cover crops.

Gaesser is a past Chairman and President of the American Soybean Association, and he is an active leader in the North America Climate Smart Agriculture Alliance. Closer to home, Ray serves as Co-Chair of Iowa's Conservation Infrastructure Initiative, and he is an active leader in numerous Iowa agriculture and economic development boards.

A member of the Iowa Soybean Association since the 1980s, Gaesser served as president of the state association in 2007-2008. He also served on the Iowa Department of Economic Development's Agriculture Products Advisory Committee from 2006-2011.

MacDonald and his family owned MacDon Industries in Winnipeg, Manitoba, for five decades. He was vice president in charge of sales and marketing at the company, which produced specialty harvesting equipment, including swathers and combine headers.

MacDonald is a member of the Farm Foundation Round Table, an invitational discussion group that brings together thought leaders from across geographic, regional and value-chain sectors to explore issues that will impact the entire food and agriculture sectors.

He also is an honorary member of Association of Equipment Manufacturers (AEM), having served as co-chair in 2002. He chaired the Equipment Manufacturers Institute in 2001.

MacDonald is on the board of VineView Imaging LLC - a Canadian company that uses drones to detect diseases and drought in vineyards.

"Ray and Gary are tremendous additions to our board," said SfL Co-Chair Fred Yoder, a third-generation Ohio corn and soybean producer. "Their long experience in agricultural production and its supply chain will greatly benefit SfL's efforts to ensure that farmers, ranchers and forestland owners engage and play a central role in the development of ag policies that address climate change. We welcome their input at this critical juncture where agriculture must adopt a 21st-century approach to meet growing global demand for food, feed, fiber, energy and ecosystem services."

"Ray and Gary will provide critical expertise as we focus our efforts this year on three priority work streams," said SfL President Ernie Shea. "We will be supporting targeted clean energy enabling policies and initiatives, and we will help scale up the adoption of climate smart agriculture strategies and practices. We also will facilitate the expansion of integrated, landscape-scale, multi-stakeholder collaborations that reward farmers, ranchers and foresters for the full range of goods and ecosystem services they deliver from the land."

"The knowledge and understanding Ray and Gary have of the issues at stake for agriculture will make them excellent resources as we pursue our priority goals," Shea said.



Fertilizer Prices Higher for Fourth Straight Week

Retail fertilizer prices continue to move higher with nitrogen fertilizers leading the way, according to retailers tracked by DTN for the last week of 2018. This marks the fourth consecutive week most fertilizers' prices were considerably more expensive.

The prices of seven of the eight major fertilizers are higher. Two fertilizers have significantly higher prices, which DTN defines as prices moves of more than 5%. Anhydrous prices are 9% higher than last month with an average price of $571/ton. That's a gain of $47/ton.  UAN28 prices increased 7% from the prior month, a gain of $18/ton, with an average price was $267/ton.  Five other fertilizers' prices were slightly higher. DAP had an average price of $508/ton, up $7/ton; MAP $533/ton, up $4/ton; potash $381/ton, up $12/ton; 10-34-0 $460/ton, up $3/ton; and UAN32 $304/ton, up $11/ton.

One fertilizer was slightly lower in price compared to last month. The average urea price declined $3/ton to $407/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.35/lb.N, UAN28 $0.48/lb.N and UAN32 $0.47/lb.N.

All eight of the major fertilizers are now higher compared to last year. MAP is 9% more expensive, potash is 10% higher, DAP is 12% more expensive, 10-34-0 is 13% higher, urea is 16% more expensive, UAN32 is 19% higher, anhydrous is 20% more expensive and UAN28 is now 22% higher compared to last year.



ACE reaction to Andrew Wheeler’s nomination as EPA chief

The American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement after President Donald Trump formally nominated Andrew Wheeler to be the Administrator of the U.S. Environmental Protection Agency (EPA). Wheeler currently serves as EPA Acting Administrator and will need to be confirmed by a majority vote in the U.S. Senate:

“We congratulate Acting Administrator Wheeler on his appointment by the President to formally lead EPA and encourage U.S. Senators to learn from the lessons of Scott Pruitt’s short tenure at EPA. Prior to his confirmation by the Senate, Mr. Pruitt promised to uphold the Renewable Fuel Standard (RFS) as the law of the land and support the President’s commitment to E15 and higher ethanol blends. However, during his time at EPA, Administrator Pruitt undermined the RFS with an unprecedented number of backdoor Small Refinery Exemptions (SREs) and resisted reallocating those blending obligations or allowing E15 use year-round. Former Administrator Pruitt’s abuse of the law and broken promises force Mr. Wheeler to overcome a very high bar to win confirmation in the U.S. Senate. Senators can make sure history does not repeat itself if they insist Acting Administrator Wheeler provide them tangible evidence EPA will reallocate the blending obligations waived for small refiners and have a legally-defensible Reid vapor pressure (RVP) relief rule for E15 finished by the 2019 summer driving season before voting to confirm him.”



Weekly Ethanol Production for 1/4/2019

According to EIA data analyzed by the Renewable Fuels Association, ethanol production declined 1.1% to the smallest volume in 37 weeks at an average of 1.000 million barrels per day (b/d)—or 42.00 million gallons daily. The four-week average for ethanol production settled lower at 1.025 million b/d for an annualized rate of 15.71 billion gallons.

Stocks of ethanol ticked 0.4% higher to 23.3 million barrels.

There were zero imports recorded for the eighth 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 perked up 1.3% at 8.735 million b/d (366.9 million gallons per day), equivalent to 133.91 billion gallons annualized. Refiner/blender input of ethanol pared back by 6.1% (down 53,000 b/d) at 815,000 b/d—equivalent to 12.49 billion gallons annualized. The ethanol content in gasoline supplied to the market averaged 9.33%, a 38-week low. The holiday week for ethanol is typically weak for ethanol blending, but the refiner/blender net input outpaces year-ago levels by 2.5%.

Expressed as a percentage of daily gasoline supplied to the market, daily ethanol production decreased to 11.45%.



December CWT-Assisted Sales Raise 2018 Sales to Over 1.3 Billion Pounds of Milk
Cooperatives Working Together (CWT) assisted in the sales of 13 million pounds of cheese, butter and whole milk powder in the last month of the year. This raised the 2018 total export sales to 72.5 million pounds of America-type cheeses, 17.4 million pounds of butter and 41.6 million pounds of whole milk powder. The milk equivalent of these sales is 1.36 billion pounds on a milkfat basis.

In total, an estimated 108 million pounds of CWT-assisted dairy products were shipped out of the United States and into overseas markets in 2018, the milkfat equivalent of 1.12 billion pounds of milk. Additional shipments contracted in 2018 will ship during early 2019.

In December, CWT helped six member cooperatives secure 62 sales contracts to send 7.9 million pounds of American-type cheeses to six countries in Asia, the Middle East, Central America and South America. Six butter contracts accounted for 1.5 million pounds of butter headed to two countries in the Middle East, while five contracts will send 3.6 million pounds of whole milk powder to three countries in Central and South America. The products will be shipped during the months of December 2018 through June 2019.

Helping CWT member cooperatives gain and maintain world market share through the Export Assistance Program positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price. It does this by expanding the demand for U.S. dairy products beyond the domestic market, thereby increasing the total demand for U.S. farm milk.



ACE announces dates for 2019 Washington, DC fly-in and government affairs summit

The American Coalition for Ethanol (ACE) formally announces its 11th annual Washington, D.C. Fly-in and Government Affairs Summit will take place April 2-3. Event registration and sponsorship opportunities are available at ethanol.org/events/fly-in.

“Ethanol producers are experiencing economic stress due to artificial limits on demand and we have more policy irons in the fire than ever before. Given these stakes, we encourage ethanol supporters to mark their calendars for the ACE fly-in and join us April 2 and 3 in D.C.,” said Brian Jennings, ACE CEO. “More than 100 new Members of Congress recently took their oaths of office and it is up to us to make sure they understand the importance and value of a strong U.S. ethanol industry.”

For more than a decade, nearly 300 unique individuals representing around 30 states have participated in ACE fly-ins, meeting with Members of Congress and top Administration officials. Past participants include ethanol company investors and management; corn farmers; scientists; and fuel marketers and gas station owners. Last year’s fly-in included remarks and Q&A from Bill Wehrum, EPA Assistant Administrator for Air and Radiation, as well as Senator Joni Ernst of Iowa.

“We’ve found that our most successful fly-ins strike a balance between Hill visits with our champions and with Members of Congress who may be new or live outside the Corn Belt,” said Shannon Gustafson, ACE Senior Director of Operations and Programming. “Personal stories go a long way on Capitol Hill; Members of Congress and staff will take note of a person who travels to Washington, contributing personal time and expense to a cause. Without events like the ACE fly-in, it only becomes easier for staffers and Members of Congress to depersonalize issues and enact changes that could harm our industry.”

In 2019, fly-in attendees will meet with Trump administration officials to emphasize the importance of completing a legally defensible Reid vapor pressure (RVP) rule for E15 before the 2019 summer driving season and argue for reallocation of the waived gallons from the Renewable Fuel Standard through so-called hardship waivers for oil refiners. Participants will also advocate for increasing ethanol demand through low-carbon and high-octane policies.