Friday March 29 Ag News

NEBRASKA 2019 PROSPECTIVE PLANTINGS

Nebraska corn growers intend to plant 9.70 million acres this year, up 1 percent from 2018, according to the USDA's National Agricultural Statistics Service.

Soybean planted acreage is expected to be 5.40 million acres, down 5 percent from last year.

All hay acreage to be harvested is expected to total 2.80 million acres, up 4 percent from 2018.

Winter wheat acres seeded in the fall of 2018 are estimated at a record low 1.10 million acres, unchanged from last year.

Sorghum growers in Nebraska intend to plant 210,000 acres, down 9 percent from a year ago.

Oat intentions are estimated at 115,000 acres, down 8 percent from last year.

Dry edible bean acreage intentions are estimated at 95,000 acres, down 32 percent from 2018. Beginning in 2019, chickpeas are excluded from the dry edible bean estimates.

Sugarbeet growers expect to plant 43,800 acres, down 4 percent from last year.

Sunflower producers expect to plant a record low 25,000 acres, down 32 percent from 2018. Oil varieties account for a record low 15,000 acres, down 40 percent from a year ago. Non-oil varieties made up the balance of 10,000 acres, down 17 percent from the previous year.

Dry edible pea acreage intentions are estimated at 55,000 acres, down 5 percent from last year.
Estimates in this report are based on a survey conducted during the first two weeks of March.



Iowa Prospective Plantings Report

Iowa farmers intend to plant 13.6 million acres of corn for all purposes in 2019 according to the USDA, National Agricultural Statistics Service – Prospective Plantings report. This is up 400,000 acres from 2018.

Producers intend to plant 9.40 million acres of soybeans in Iowa this year. This is a 600,000 acre decrease from 2018.

Iowa farmers intend to plant 135,000 acres of oats for all purposes, unchanged from last year.
Farmers in Iowa expect to harvest 1.05 million acres of all dry hay for the 2019 crop year. This is 110,000 acres more than harvested in 2018.

The Prospective Plantings report provides the first official, survey-based estimates of U.S. farmers’ 2019 planting intentions. NASS’s acreage estimates are based on surveys conducted during the first two weeks of March from a sample of approximately 82,400 farm operators across the United States with more than 2,800 from Iowa. Actual plantings will depend upon weather, economic conditions and the availability of production inputs at the time producers make their final planting decisions.



USDA:  Corn Planted Acreage Up 4 Percent from 2018
Soybean Acreage Down 5 Percent
All Wheat Acreage Down 4 Percent
All Cotton Acreage Down 2 Percent

Corn planted area for all purposes in 2019 is estimated at 92.8 million acres, up 4 percent or 3.66 million acres from last year. Compared with last year, planted acreage is expected to be up or unchanged in 34 of the 48 estimating States.

Soybean planted area for 2019 is estimated at 84.6 million acres, down 5 percent from last year. Compared with last year, planted acreage is down or unchanged in 26 of the 29 estimating States.

All wheat planted area for 2019 is estimated at 45.8 million acres, down 4 percent from 2018. This represents the lowest all wheat planted area on record since records began in 1919. The 2019 winter wheat planted area, at 31.5 million acres, is down 3 percent from last year but up 1 percent from the previous estimate. Of this total, about 22.4 million acres are Hard Red Winter, 5.55 million acres are Soft Red Winter, and 3.55 million acres are White Winter. Area planted to other spring wheat for 2019 is estimated at 12.8 million acres, down 3 percent from 2018. Of this total, about 12.4 million acres are Hard Red Spring wheat. Durum planted area for 2019 is estimated at 1.42 million acres, down 31 percent from the previous year.

All cotton planted area for 2019 is estimated at 13.8 million acres, 2 percent below last year. Upland area is estimated at 13.5 million acres, down 2 percent from 2018. American Pima area is estimated at 255,000 acres, up 2 percent from 2018.



NEBRASKA MARCH 1, 2019 GRAIN STOCKS

Nebraska corn stocks in all positions on March 1, 2019 totaled 1.01 billion bushels, up 5 percent from 2018, according to the USDA's National Agricultural Statistics Service. Of the total, 600 million bushels are stored on farms, up 11 percent from a year ago. Off-farm stocks, at 406 million bushels, are down 3 percent from last year.

Soybeans stored in all positions totaled 217 million bushels, up 31 percent from last year. On-farm stocks of 80.0 million bushels are up 57 percent from a year ago, and off-farm stocks, at 137 million bushels, are up 19 percent from 2018.

Wheat stored in all positions totaled 48.9 million bushels, down 7 percent from a year ago. On-farm stocks of 2.15 million bushels are down 17 percent from 2018, and off-farm stocks of 46.8 million bushels are down 7 percent from last year.

Sorghum stored in all positions totaled 7.53 million bushels, up 37 percent from 2018. On-farm stocks of 890,000 bushels are up 19 percent from a year ago and off-farm holdings of 6.64 million bushels are up 40 percent from last year.

On-farm oat stocks totaled 360,000 bushels, down 28 percent from 2018.



Iowa Grain Stocks Report

Corn stored in all positions in Iowa on March 1, 2019, totaled 1.57 billion bushels, down 8 percent from March 1, 2018, according to the latest USDA, National Agricultural Statistics Service – Grain Stocks report. Of the total stocks, 63 percent were stored on-farm. The December-February 2019 indicated disappearance totaled 614 million bushels, 10 percent below the 685 million bushels from the same period last year.

Soybeans stored in all positions in Iowa on March 1, 2019, totaled 420 million bushels 15 percent above the 366 million bushels on hand March 1, 2018. This is the largest March stocks on record, 11 percent higher than the previous record of 380 million bushels on hand March 1, 2007. Of the total stocks, 46 percent were stored on-farm. Indicated disappearance for December-February 2019 is 107 million bushels, 12 percent below the 122 million bushels from the same quarter last year.

Oats stored on-farm in Iowa on March 1, 2019, totaled 760 thousand bushels, up 1 percent from March 1, 2018.



USDA: Corn Stocks Down 3 Percent from March 2018
Soybean Stocks Up 29 Percent
All Wheat Stocks Up 6 Percent

Corn stocks in all positions on March 1, 2019 totaled 8.60 billion bushels, down 3 percent from March 1, 2018. Of the total stocks, 5.13 billion bushels were stored on farms, up 3 percent from a year earlier. Off-farm stocks, at 3.47 billion bushels, are down 11 percent from a year ago. The December 2018 - February 2019 indicated disappearance is 3.33 billion bushels, compared with 3.67 billion bushels during the same period last year.

Soybeans stored in all positions on March 1, 2019 totaled 2.72 billion bushels, up 29 percent from March 1, 2018. Soybean stocks stored on farms are estimated at 1.27 billion bushels, up 49 percent from a year ago. Off-farm stocks, at 1.45 billion bushels, are up 15 percent from last March. Indicated disappearance for the December 2018 - February 2019 quarter totaled 1.03 billion bushels, down 2 percent from the same period a year earlier.

All wheat stored in all positions on March 1, 2019 totaled 1.59 billion bushels, up 6 percent from a year ago. On-farm stocks are estimated at 368 million bushels, up 42 percent from last March. Off-farm stocks, at 1.22 billion bushels, are down 1 percent from a year ago. The December 2018 - February 2019 indicated disappearance is 419 million bushels, 11 percent above the same period a year earlier.



Nebraska Farmers Union Spring 2019 District Meeetings

District 5 Spring Meeting:  Brewsky’s, Food & Spirits, 1602 South St., Lincoln, NE 68502
Monday, April 8, 2019.  6:00 pm supper on your own with meeting to follow
 · District 5 Director’s Report:  Ben Gotschall
· NFU Convention, state & national issues:  John Hansen
Flood Relief efforts and Nebraska Legislature updates will be given.
Special Guests: Senators Tom Brandt & Myron Dorn
Bring a friend, neighbor or family member. Donations will be accepted to the NeFU Foundation for flood relief at the meeting.
For more information, call Ben Gotschall (402) 705-8679.

District 7 Spring Meeting: Barnstormers Family Bar & Grill, 4100 S. 13th St., Norfolk
Wednesday, April 10, 2019 11:00 am Lunch on your own with meeting to follow
District 7 Director’s Report:  Martin Kleinschmit
NFU Convention & national issues:  John Hansen
Flood Relief efforts and Nebraska Legislature updates will be given
Special Guest:  Josh Moenning-Mayor of Norfolk & Director of New Power Nebraska
Bring a friend, neighbor or family member. Donations will be accepted to the NeFU Foundation for flood relief at the meeting.
For more info, call Art Tanderup (402) 278-0942 or (402) 887-1396.

District 6 Spring Meeting:  The Office bar & Grill, 121 N Main Street, Hooper, NE 68031
Wednesday, April 10, 2019 6:00 pm supper on your own with meeting to follow.
 ·District 6 Director’s Report:  Graham Christensen
· NFU Convention report: Graham Christensen & John Hansen
Flood Relief efforts and Nebraska Legislature updates will be given.
LB227: Nuisance Law, LB729 Soil Health Productivvity
LB23 Soil Health Task Force, Property Tax Reform & Hemp
Updates on the Dist. 6 First Tree-Range Regenerative Poultry Farms
Bring a friend, neighbor or family member. Donations will be accepted to the NeFU Foundation for flood relief at the meeting.
For more information, call Paul Poppe (402) 380-4508.



Confirmed Case of Equine Herpesvirus in Altoona Has Been Contained

The Department of Agriculture and Land Stewardship received positive test results of a case of Equine Herpesvirus (EHV) at a barn in Altoona. To prevent the virus from spreading, other horses in the barn were quarantined for two weeks, with barn staff checking their temperatures twice daily. State Veterinarian Dr. Jeff Kaisand is working with owners and staff to ensure proper procedures are followed to contain the virus.

EHV can cause herpesvirus myeloencephalopathy (EHM), a neurological disease affecting horses that can cause damage to blood vessels in the brain and spinal cord. EHV does not pose any threat to humans or other species of animals.

EHV is common in large horse populations and is spread through respiratory tract and nasal secretions. Most horses have been exposed to EHV at some point in their lives and most show no serious signs of illness.

The Department encourages horse owners and caretakers to monitor their horses for symptoms of EHV. If a horse develops a fever or shows signs of other symptoms, such as loss of coordination, leaning against a wall or fence to maintain balance, nasal discharge, decreased urine output, loss of tail tone, hind leg weakness, lethargy or the inability to stand, owners should call their veterinarian immediately.

To prevent EHV horse owners should practice the following good husbandry and biosecurity practices at all times. If you own or interact with horses:
-    Make sure you work with a veterinarian to have a good health program for your horse(s).
-    Practice good biosecurity while at and after attending events where multiple horses gather. This includes:
-        Not sharing equipment with other horse owners. This includes avoiding shared water and feed buckets/troughs between other horse(s) and your horse(s).
-        Wash hands or use hand sanitizer between handling other horse(s) and your horse(s).
-        When returning home, isolating your horse(s) that were at the event from your horse(s) that did not attend. This will help keep the rest of your horses from being exposed to any potential diseases brought back from the event.
-    For additional guidance speak with your veterinarian.



Iowa Winner of Pulled Pork Madness Contest

An Ottumwa restaurant beat out fifteen other competitors to take the championship bracket of Pulled Pork Madness sponsored by the Iowa Pork Producers Association (IPPA). Warehouse Barbecue Co. was the top vote-getter in this social media contest that had 2,200 votes cast as Iowans worked their way through the Sweet Sixteen group announced March 13.

IPPA's Consumer Outreach Director Kelsey Byrnes initially invited Iowa Pork social media followers to nominate the Iowa restaurant they felt had the best pulled pork sandwich. About 1,130 pork fans nominated 80 restaurants and Byrnes then selected the top two vote-getters in each of IPPA's eight districts to fill out the "Sweet 16" bracket that got the head-to-head contests underway.

In the championship round, Warehouse Barbecue Co. defeated Iowa BBQ Co. of Le Mars.

Warehouse Barbecue Co. is owned by a father and son duo, Dusty and Roger Ware. The menu describes their winning Pulled Pork as made from hickory-smoked Duroc premium pork. You can order a pulled pork sandwich, or buy the pulled pork in ¼, ½, or 1-pound quantities.

"We hold this social media contest to attract new pork fans and remind people that there are restaurants in all parts of Iowa that offer really great barbecue pork," Byrnes said.

Along with bragging rights, Warehouse Barbecue Co. receives $250 and a "Pulled Pork Madness" plaque.



R-CALF USA Asks Attorney General Barr to Block Merger Between National Beef Packing Co. and Iowa Premium

Yesterday, R-CALF USA sent a formal request to U.S. Attorney General William P. Barr urging him to block the proposed acquisition of Iowa beef packer Iowa Premium by National Beef Packing Company (National Beef), which is now majority owned by Brazilian-based Marfrig Global Foods (Marfrig).

In its nine-page letter, R-CALF USA wrote that National Beef’s acquisition of Iowa Premium will substantially reduce competition for fed cattle regionally as well as nationally, thus harming independent U.S. cattle producers and will also likely substantially reduce competition for boxed beef, which will harm American consumers.

The letter points out that National Beef is a member of the “Big 4,” which the group refers to as a beef packing cartel because the Big 4 beef packers already control 85 percent of the nation’s fed cattle market. According to a Cattle Buyer’s Weekly report referenced in the letter, National Beef slaughters 12,000 fed cattle per day and Iowa Premium slaughters 1,100 fed cattle per day, making Iowa Premium the nation’s twentieth largest beef packer.  

The group argues that allowing National Beef to roll Iowa Premium into the Big 4 cartel will accelerate the already shrinking price discovering cash market; will accelerate the decline of smaller to mid-sized beef packing plants; and will allow the Brazilian beef packing cartel to weaken the U.S. cattle industry.

The letter states that the Iowa-Minnesota fed cattle procurement region “is the U.S. cattle industry’s last bastion of robust regional competition for fed cattle.” The Iowa-Minnesota fed cattle region is the only region in which over 50 percent of fed cattle are still purchased in the competitive cash market.

The group states this will likely change if the acquisition is allowed to occur because small to mid-sized beef packers like Iowa Premium operate differently than do the Big 4. Among the differences the group cites are that smaller packers are not inclined to refuse to buy cattle on a live weight basis by offering bids only on a carcass weight basis, which then subjects cattle producers to shipping costs; and smaller packers are more inclined to “step out” of the narrow, one- to two-day, late week trading window established by the Big 4 to offer more competitive bids earlier in the week. 

Another difference the group cited is that unlike National Beef, which has joined in a cartel with Tyson and Cargill to limit access to the marketplace unless producers become certified under the Beef Quality Assurance (BQA) program, smaller packers are less likely to engage in such conduct. The group explains that National Beef’s conduct is an example of market power abuse as National Beef does not even specify which particular production standards it wants producers to follow.

“Indeed, it does not need to because by joining the cartel, the three Big 4 packers know they possess sufficient market power to force producers into compliance, including producers whose cattle are not purchased by National Beef or the other three packers,” the group wrote.

The group also raised concerns with what it calls the Brazilian cartel that is trying to “swallow up America’s critical food production facilities and gain control over America’s food-production supply chain, particularly its live cattle supply chain.”

According to the letter, National Beef’s new owner, Brazilian-based Marfrig, had been cited for antitrust violations in Brazil and was implicated in the widespread Brazilian food safety scandal that caused the U.S. to close its border to fresh Brazilian beef in 2017.

“The U.S. Department of Justice should take decisive action to prevent Marfrig-owned National Beef from acquiring Iowa Premium on the grounds that Marfrig demonstrates an unrepentant propensity for: i) exploiting cattle producers through anticompetitive buying practices; ii) exploiting consumers through the production and sales of unsafe beef; iii) violating basic food safety standards; and, iv) engaging in cartel behavior with JBS, the group wrote.

In its conclusion, R-CALF USA urged the U.S. Department of Justice’s Antitrust Division to aggressively enforce United States antitrust laws to block the proposed acquisition of Iowa Premium by National Beef.



ICGA Leaders Raise Concerns Over Proposed Rule at EPA Hearing

Today, Iowa Corn Growers Association® (ICGA) President Curt Mether and ICGA At-Large Director Bob Hemesath testified to the Environmental Protection Agency (EPA) on the importance and impact of finalizing the proposed E15 RVP rule released earlier this month. The proposal would allow for year-round E15 sales; however, it also raises many concerns for farmers and ethanol blending due to a few renewable identification number (RIN) reform proposals within the proposed rule.

In Mether’s testimony he noted, “We support using the proposed substantially similar determination for equitable RVP treatment of E15.” He also emphasized that, “EPA needs to finalize the proposed RVP rule by June 1 because the current landscape is causing needless confusion for consumers and retailers and limiting greater ethanol sales through increased E15 availability."

Hemesath added, “Programs and initiatives that help put in place biofuels pumps and tanks have some serious momentum, and that momentum has been multiplied on the heels of this proposal to ensure E15 is now available year-round to motorists around the country.”

However, both farmer leaders cautioned the EPA on the RIN reform proposals, with Mether stating, “When it comes to the RIN reform proposals within this proposed rulemaking, we ask that EPA ensure changes to the RIN market are fair to those who are actually blending biofuels. The current proposal seems to tip the scales in favor of those who choose not to blend biofuels, instead of incentivizing those who blend biofuels and actually further the goals of the RFS.”

ICGA and its members will continue to engage with the EPA and our elected leaders on this proposed rule to finalize equitable RVP treatment for E15 by June 1. ICGA encourages farmers and ethanol supporters to join us to lift the outdated restrictions on E15 to ensure this proposal continues to enhance ethanol blending opportunities by submitting a comment to the EPA and supporting E15 year- around here. The EPA is accepting comments on the proposed rule until April 29.

E15 is a fuel blend containing 15 percent ethanol and is approved for use in all 2001 and newer vehicles, making up roughly 90 percent of the vehicles on the road today. Currently, outdated Reid Vapor Pressure (RVP) regulations force fuel retailers to restrict sales of E15 to flex fuel vehicles (FFV) only from June 1 to September 15, the peak driving season. Today’s EPA hearing allows ICGA to speak and inform the public about the importance of year-round sales of E15.



NCGA Testifies in Support of Year-Round E15

National Corn Growers Association First Vice President and Minden, Iowa, farmer Kevin Ross spoke in support today of the Environmental Protection Agency’s (EPA) proposed rule to allow for year-round sales of E15 across the country.

“Farmers stand ready to work with the Administration to clear obstacles to higher blends of ethanol such as E15 and ensure a final rule works for the full ethanol and fuel supply chain,” Ross said. “To ensure E15 sales are not interrupted, NCGA urges EPA to complete this rulemaking by June 1.”

Ross’s comments came during a hearing held as part of the rulemaking that would remove outdated regulations requiring retailers in many areas of the country to stop selling E15, a blend of gasoline and 15 percent ethanol approved for all vehicles 2001 and newer, during the summer months.

Year-round E15 is a no-cost means for farmers to grow demand. It also saves drivers between 3 and 10 cents per gallon and reduces greenhouse gas emissions.

During the hearing, Ross also spoke on the negative impacts EPA’s expansive Renewable Fuel Standard (RFS) waivers for refiners have had on farmers who are already struggling amid declining farm incomes and trade disruptions. NCGA has urged the EPA to rein in RFS exemptions provided to profitable refiners.

Ross also urged caution around the proposed rule’s complex RIN market reform proposal. “To ensure E15 sales are not interrupted, NCGA urges EPA to complete this rulemaking by June 1, as well as keep the complex RIN market reform proposal from weighing down the E15 rule,” Ross said.



Growth Energy Backs E15 Year-Round Proposal at EPA Hearing

Today, Growth Energy CEO Emily Skor testified at the U.S. Environmental Protection Agency’s (EPA) hearing on the proposed rule to implement year-round sales of E15, a fuel blended with 15 percent ethanol. Skor spoke alongside farmers, retailers, and ethanol producers in support of this proposal, pressing EPA to finalize the rule before the June 1 deadline.

In her testimony, Skor emphasized the economic, engine performance, and environmental benefits of E15: “For motorists, the value proposition of E15 is clear. Drivers typically save up to 10 cents per gallon, while E15’s superior octane rating provides better engine performance. The value to our planet is equally compelling. E15 is a cleaner fuel that reduces evaporative emissions and greenhouse gas emissions. It replaces toxic fuel additives associated with cancer, asthma, and smog.”

And stressed how allowing E15 sales year-round will be the shot in the arm rural America needs:

“Eliminating this barrier promises to unlock an estimated 1.3 billion gallons of new annual ethanol demand. Over time, that added demand could grow to seven billion gallons, lending an economic lifeline to rural families.... Across the heartland, more than 200 biofuels plants support their communities, and these plants are under incredible strain. Many have already shut their doors or idled production in recent months. The recent flooding across the Midwest has only exacerbated these tough times, not to mention the 2.6 billion gallons lost to small refinery exemptions.

“With year-round E15, EPA has the opportunity to give American farmers and producers the ability to grow greater demand and expand market access for their homegrown fuel.”

The proposed rule would lift a nearly thirty-year-old limitation on E15, which restricts sales between June 1 and September 15. Today’s hearing is part of the public comment period of the rulemaking process, which ends on April 29. EPA has committed to completing the rulemaking process by June 1, 2019.



RFA Strongly Supports, Urges Quick Action on EPA Proposal to Allow Year-Round E15

In testimony delivered at a public hearing today in Ypsilanti, Mich., RFA President and CEO Geoff Cooper urged the agency to finalize the Modifications to Fuel Regulations to Provide Flexibility for E15 proposal ahead of the summer driving season.

In remarks to EPA officials, Cooper said, “We strongly support EPA’s proposal allowing E15 to take advantage of the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 during the summer months….Extending the 1-psi RVP waiver to E15 during the summer volatility control season will open the marketplace to a fuel that provides consumers higher octane, lower cost, and reduced tailpipe emissions. We firmly endorse EPA’s proposal to interpret section 211(h)(4) of the Clean Air Act as being applicable to ethanol blends containing at least 10 percent ethanol, including E15, and we believe EPA’s justification for this interpretation is well supported by the statutory text and Congressional intent.”

Cooper further commented on E15 made at blender pumps, stating, “RFA encourages EPA to consider a more flexible approach to regulation of E15 made at blender pumps. A majority of the retail dispensers selling E15 today are, in fact, blender pumps that mix E85 and E10 together to make the finished fuel. Under your proposal, E15 made in this manner would not qualify for the 1-psi RVP waiver, even if the finished fuel met applicable sulfur and benzene standards and had volatility of 10.0 psi or less. This seems unreasonable, especially because E15 made from E85 and E10 via a blender pump typically contains just 1 percent natural gasoline.”

In addition, Cooper testified to the RIN (Renewable Identification Number) Reform portion of the proposal, saying “RFA generally opposes any changes that would reduce RFS compliance flexibility, diminish liquidity in the RIN market, give certain parties in the marketplace unfairly advantaged positions, add unnecessary complexity, increase administrative burdens, or impugn the RIN market’s ability to incentivize expansion of renewable fuel consumption. RFA does not believe any of the four main options proposed represent an improvement or enhancement of the current RIN program.”

Cooper further discussed the issue of Small Refinery Exemptions (SREs), noting “while RFS small refinery exemptions are not the explicit subject of this rulemaking or today’s hearing, we feel compelled to remind EPA that continued abuse of the SRE program would significantly undermine the ethanol market expansion intended to result from finally allowing year-round sales of E15.”

In closing, he stated, “We continue to believe it is very important that the Agency sever the RVP and RIN reform provisions into two rulemaking efforts in the event it appears from the comments submitted that the RIN reform provisions might jeopardize or complicate promulgation of the RVP measures before May 31.”



NBB Asks EPA to Reform Small Refinery Exemptions at Public Hearing

Today, representatives from the National Biodiesel Board (NBB) and its member companies testified at the Environmental Protection Agency’s (EPA) public hearing on the proposed Modifications to Fuel Regulations to Provide Flexibility for E15 and to Elements of the Renewable Identification Number (RIN) Compliance System. NBB asked the agency not to adopt the proposed changes to the RIN system as it finalizes the E15 rule.

“EPA must change its practice of encouraging retroactive small refinery exemption petitions,” Kurt Kovarik, NBB’s Vice President of Federal Affairs, testified. “We ask that the agency use this opportunity to instead address the timing of small refinery exemption petitions. If EPA finds that it can easily propose a quarterly compliance deadline in the RIN reform proposed rule, the agency should feel just as comfortable applying a similar reasonable administrative requirement that small refineries submit petitions before the end of the compliance year.”

NBB Chairman Kent Engelbrecht also testified, stating, “We appreciate EPA taking claims of RIN market manipulation seriously. But because the agency has yet to see data-based evidence of such behavior, we recommend that EPA not finalize the RIN reform portion of the proposed rule.”

Roy Strom, President & CEO of W2Fuel, LLC, an NBB member, stated at the hearing, “To succeed, the biodiesel industry needs signals that allow us to forecast market demand. While the RVO should be the forecast, the current practice of granting retroactive small refinery exemptions undermines that signal.”

Chris Peterson, President of HERO BX, testifying on behalf of NBB, said, “Unfortunately, EPA has not provided any evidence of RIN market manipulation to warrant any of its proposed reforms. The reforms themselves could further lead to market uncertainty and financial losses.”

David Cobb, NBB Director of Federal Affairs, added, “EPA acknowledges within its proposal that there is no evidence of RIN market manipulation to date. Rather than solve a problem, the proposed RIN system changes could potentially disrupt the RIN market and even undermine the RFS.”

On Thursday, March 28, EPA granted a 35th small refinery exemption for 2017, upping the total volume of exempted gasoline and diesel for that year to 17.05 billion gallons. The exemptions have destroyed demand for more than 360 million gallons of biomass-based diesel over the past 12 months.



ACE leadership testifies on EPA’s proposed RVP/RIN rule

American Coalition for Ethanol (ACE) Senior Vice President and Market Development Director Ron Lamberty testified today during the public hearing in Ypsilanti, Michigan, on the Environmental Protection Agency’s (EPA) proposed rule “Modifications to Fuel Regulations to Provide Flexibility for E15; Modifications to RFS RIN Market Regulations.”

Lamberty’s testimony highlights points which will be detailed in ACE’s written comments to the proposed rule. The points include: (1) supporting EPA’s effort to allow the 1-psi Reid vapor pressure (RVP) waiver to apply to E15 today and accommodate for a higher octane higher ethanol blend if one were approved in the future; (2) finalizing a legally-defensible rule in time for fuel retailers to sell the fuel by June 1; (3) welcoming EPA’s analysis that E15 would be held to the same gasoline volatility standards as E10 and have substantially the same level of emissions performance as E10; (4) urging EPA to cast away the proposed changes to RINs that would undermine ethanol demand and negate the upside benefit of E15 year-round; and (5) emphasizing the need for proper implementation of the Renewable Fuel Standard (RFS) Small Refinery Exemption (SRE) program.

In his testimony to EPA, Lamberty said, “ACE supports EPA’s effort to enact a legally-defensible rule providing RVP relief to ethanol blends 10 percent and higher, and to do so in time for E15 retailers to avoid the pointless stop-and-start dance they have been forced to perform for the previous seven summer driving seasons. The unnecessary changes in product availability and labeling currently required each June and September – changes which prevent stations from offering a more environmentally friendly, higher octane, lower cost fuel, during the busiest time of the year - have been a major roadblock preventing gas station and convenience store owners and operators from offering E15. The fact thousands of other retailers are willing to jump through EPA’s hoops each spring and fall is testament to how valuable E15 is to those businesses and their customers.”

On EPA’s RIN Reform portion of the proposal, Lamberty noted ACE continues to encourage EPA to separate these unrelated matters and stated, “the proposed changes to blending and RIN trading proposed in this rule would create new challenges for retailers and blenders, removing incentives for those who have invested in blending infrastructure and turning control of the RFS back to those who have refused to take action to comply with the rule over almost a decade and a half since the RFS became law.”



NMPF Thanks Congressional Agriculture Leaders for Urging Dairy-Program Implementation

The National Milk Producers Federation today thanked key House and Senate dairy leaders for adding bipartisan momentum to implementing new, greatly needed dairy programs, a top priority for the U.S. Department of Agriculture.

The letters from the House and Senate to Agriculture Secretary Sonny Perdue urge the department to implement dairy-related provisions of the Farm Bill passed in 2018 as swiftly as possible. House Agriculture Committee Chairman Collin Peterson (D-MN) and senior committee member Representative Glenn ‘GT’ Thompson (R-PA) led the House effort, and Senate Agriculture Committee Ranking Member Debbie Stabenow (D-MI) and Senator Roy Blunt (R-MO) led in the Senate. As noted in the letters, the new Dairy Margin Coverage (DMC) program and other improvements in the new farm bill will provide critical help to dairy farmers this year.

The letters, signed by 77 House members and 38 Senators from both parties, also urge active USDA engagement with farmers on multiple levels, including mailings, phone calls and local meetings, as well as collaboration with stakeholders including state officials, cooperatives, producer groups and institutions of higher education.

“We commend Chairman Peterson, Rep. Thompson, Ranking Member Stabenow, Senator Blunt, and their numerous colleagues for drawing attention to the difficulties dairy farmers are enduring,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “Implementing dairy programs in a fast and farmer-friendly manner is important to NMPF members. We applaud Secretary Perdue for his efforts to commit to a timeline that gives farmers some certainty for financial planning. We need to ensure that outreach is broad and that farm-specific issues that arise during implementation are addressed with flexibility.”

“We look forward to working with USDA to continue to best serve our hard-working, economically stressed producers, and we support the congressional support of this process,” Mulhern said. 



Cargill reports fiscal 2019 third-quarter results

Cargill today reported results for the fiscal 2019 third quarter and first nine months ended Feb. 28, 2019. Key measures include:
-    Adjusted operating earnings were $604 million, up 8 percent from the $559 million earned last year. This brought earnings for the first nine months to $2.34 billion, a 2 percent decrease from the prior year.
-    Net earnings on a U.S. GAAP basis for the quarter were $566 million, a 14 percent increase from $495 million in the year-ago period. For the nine-month period, net earnings declined 3 percent to $2.33 billion.
-    Third-quarter revenues decreased 4 percent to $26.9 billion, bringing the year-to-date figure to $83.5 billion.

“Disruptions and uncertainty in the global business environment continued to present challenges during the quarter, but our teams captured greater efficiencies across the company,” said Dave MacLennan, Cargill’s chairman and chief executive officer. “We remain focused on our growth objectives. To achieve them, we are innovating what matters for our customers so they can win with consumers in local markets.”

Segment results
Adjusted operating earnings across Cargill’s four business segments were below the year-ago level. The difference was offset by reduced spending among corporate functions and other cost reductions.

Animal Nutrition & Protein was the largest contributor to Cargill’s adjusted operating earnings. Within the segment, earnings in North American protein exceeded the year-ago period, boosted by continued strong domestic and export demand for beef as well as consumer demand for egg products. Higher production costs at Cargill’s poultry processing joint ventures in the Philippines and U.K. contributed to a decline in global poultry results. Two recently acquired value-added chicken processors – Campollo in Colombia and Konspol in Poland – both got off to a good start as part of Cargill. Increased sales volumes for salmon feeds in the North Sea region and functional feeds in North America improved earnings in aqua nutrition, but animal nutrition results in total trailed the prior year due in part to the outbreak of African swine fever in China and other countries, as well as unfavorable dairy economics in the U.S.

Food Ingredients & Applications delivered mixed results across the segment. Starches and sweeteners earnings declined on historically low ethanol prices in North America, and higher energy and raw material costs in Europe. Lower sales volume and higher operating costs in North America trimmed otherwise strong cocoa and chocolate performance in other regions. Edible oils pulled ahead of last year on good positioning and operating efficiencies. In North America, wintry weather slowed bioindustrial sales to the road construction industry; at the same time, icy and snowy road conditions drove demand for deicing products. Sales of salts for food and water quality applications also contributed to improved salt results.

In early March, Cargill announced its intent to acquire Smet, a Belgium-based supplier of chocolate and chocolate decorations. The purchase aligns with Cargill’s intent to accelerate growth in specialty ingredients, as Smet would broaden product offerings and services to artisan, chocolatier and foodservice customers. Subject to information and/or consultation procedures with the appropriate employee representative bodies, the transaction is expected to close in the first half of calendar 2019.

Earnings in Origination & Processing reflected a challenging environment with ongoing trade tensions and other supply chain disruptions. In North America, soy and canola crush operations ran at high capacity, but the near absence of the Chinese market for plentiful U.S. soybean stocks reduced profitability. The trade turbulence also negatively affected soybean crush operations in China, as did lower demand for soybean meal for feed following the culling of hogs to control the spread of African swine fever. The segment’s European and South American operations both posted higher profits over the prior year, with soybean and soft seed processing leading the way in Europe, and corn and soybean origination improving in Brazil.

Announced last quarter, Cargill completed the formation of Grainbridge with Archer Daniels Midland. The technology joint venture will begin developing a suite of digital tools to give North American farmers market data and information on their grain marketing activities in a single platform at no cost to them.

Earnings in the Industrial & Financial Services segment were negatively affected by the industrywide impact of a mining disaster in Brazil in January that required the mine owner to cut iron ore production and exports to China. The incident caused iron ore futures prices in China to rise sharply, and Capesize vessel freight rates to fall significantly. Ocean shipping rates began to strengthen by quarter end, but concerns about a slowdown in global growth continued to weigh on markets. Elsewhere in the segment, the risk management business, which develops diversified risk management strategies for a wide range of customers, put up a strong quarter with balanced performance across agriculture, energy, metals and other product lines.