Thursday March 7 Ag News

SHOULD YOU PLANT ROUNDUP READY ALFALFA?
Bruce Anderson, NE Extension Forage Speicialist

               Are you considering planting new fields to alfalfa this spring?  Maybe you are thinking of using Roundup Ready varieties.  Are they right for your operation?  What factors should you consider?

               It will be easy to control most weeds in alfalfa that is tolerant to Roundup herbicide.  But just because it’s easy shouldn’t be your reason to buy these varieties.  You may not need this trait.

               For example, I encourage many of you cow-calf producers to plant grass-alfalfa mixtures in your hay fields.  Since Roundup will kill the grass, conventional varieties are more appropriate in these situations.  You must also realize that controlling weeds in alfalfa usually does not increase hay tonnage.  After all, weeds can boost yield, and sometimes weeds also can be acceptable feed.  So spending time and money to kill weeds in alfalfa isn’t always worthwhile.

               Another example is planting oats with the alfalfa and later harvesting the oats for either hay or as grain and straw.  Roundup can’t be used in this situation until after the oats has been harvested.  If a good stand of alfalfa is present after oats has been harvested, further weed control with Roundup or any other herbicide may not be needed.

               Not everyone has problems with weeds in alfalfa.  This often is true if alfalfa fields usually are rotated to a different crop after four or five years of production.  If a good stand can be established using other weed control options or herbicides, weeds often don’t become a big problem in alfalfa until stands get older and start to thin out.

               Don’t forget – it will cost you two dollars and fifty cents more per pound of seed to get this new trait.  That’s 30 to 50 dollars per acre at most common seeding rates.  So make sure easier weed control is really worthwhile to you before you make this investment.



Nebraska Dairy Princess Crowned

Faith Junck, a 17-year-old from Carroll, was crowned the Nebraska Dairy Princess during the annual Nebraska State Dairy Convention in Columbus Feb. 26th.

Junck is the daughter of Dwaine and Priscilla Junck, and is a junior at Wayne High School. Her role as princess will be to make public appearances to help people understand the dedication of dairy farm families to their cows, their land and the milk they produce. Midwest Dairy sponsors the dairy princess program on behalf of Nebraska’s dairy farm families.

The new princess currently serves as secretary of her school’s FFA chapter. Junck helps her parents on the family dairy farm, and she also shows cattle at the Wayne County Fair. Her school involvement includes FBLA, band, cross country and track, and she is active in her church.

Whitney Hochstein, a 16-year-old from Wynot, Nebraska was named first runner-up to the Nebraska Dairy Princess. She is the daughter of Neal and Sharlee Hochstein and attends Wynot Public Schools. Her school activities include volleyball, band, choir, One Acts and National Honor Society. She is also an active volunteer in her church.

Both the princess and the runner-up receive scholarships from Midwest Dairy.



ACE, retailers talk opportunities to increase E15, higher ethanol blends at NEB Forum 

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty participates on a panel today at Nebraska Ethanol Board’s 2019 Emerging Issues Forum in La Vista, Nebraska, with retailers about the opportunities and practical considerations to increase E15 and higher ethanol blends. Lamberty also moderates a panel Friday about emerging markets for U.S. ethanol.

Joining Lamberty on the panel is Randy Gard of Bosselman Enterprises and Matt Spackman of Kum  & Go. Lamberty’s presentation will cover common questions and concerns ACE has heard from petroleum marketers about offering E15 and higher ethanol blends, as well as ACE’s efforts to correct the misinformation surrounding the upcoming Reid vapor pressure (RVP) rule to allow year-round E15.

“Many retailers are concerned their equipment isn’t compatible, but that’s not likely,” Lamberty said. “The Department of Energy’s National Renewable Energy Lab published their E15 and Infrastructure report nearly four years ago, and in it they said, ‘the majority of installed tanks can store blends above E10.’ We can put retailers in touch with other marketers, who have increased their volumes and profits selling higher ethanol blends, at flexfuelforward.com.”

Panelist Randy Gard is one such retailer who has “been there and done that.” Gard’s presentation will show attendees the direct correlation between blender pumps and ethanol sales.

“You don’t hear ‘if you build it, they’ll come’ very often, but we’ve proven that,” Gard said. “Simply put, retailer infrastructure drives consumption. If you have the product and E15 is a nickel less, people are going to buy it and we have data to back that up — we just need more locations.”

“The second part of that is there are off-rack blending facilities that need to be built so we’re in control of our own destiny,” Gard added. “Also, from a legislative perspective, the RVP year-round waiver is a big deal.”

The panel Lamberty moderates on Friday consists of Roger Berry of the Nebraska Corn Board, Kristy Moore of KMoore Consulting LLC, and Craig Willis of Growth Energy. Lamberty will draw upon what he’s learned while speaking at technical ethanol information forums in Mexico during the discussion. 



Pork Board Names 2019 Pig Farmers of Tomorrow

The National Pork Board announced today that Bailee Arnold from North Carolina, Ben Luebbering from Missouri and Ben Wikner from Iowa have been named the 2019 Pig Farmers of Tomorrow. They were recognized today at the 2019 National Pork Industry Forum in Orlando.

“It is important for the Pork Checkoff to recognize the future leaders of the pork industry,” said National Pork Board President Steve Rommereim, a pork producer from Alcester, South Dakota. “We are excited for these young farmers to share their unique stories with consumers.”

The award recognizes farm leaders, ages 18-29, who intend to make pig farming their life’s work and who are committed to raising pigs using the pork industry’s We CareSM ethical principles. The winners will speak at Pork Checkoff events and provide content on #RealPigFarming, which is the pork industry’s social media program.

Arnold is a sow farm manager for Goldsboro Milling in North Carolina. She manages nine employees to provide care for sows and piglets on her farm near Vanceboro, North Carolina.

“Working in the pork industry is a rewarding career,” Arnold said. “What most excites me about being a Pig Farmer of Tomorrow is the chance to share my story and educate those who have questions about how their food is grown.”

Luebbering and his family own Profits Point Farm near St. Thomas, Missouri. They farrow and finish pigs, as well as raise cattle.

“My family and I care for each pig individually,” Luebbering said. “Raising healthy pigs is important to us, and I’m excited to share our story with consumers, especially on social media. As farmers, we must share what we do on our farms every day to provide the best care for our pigs.”

Wikner is a second-generation pig farmer. With his family, Wikner owns and operates a farrow-to-wean farm and also raises corn and soybeans near Farmersburg, Iowa.

“It is important for people in the pork industry to speak up so that our story gets told correctly,” Wikner said. “The connections we make help dispel misconceptions about our farming practices and show consumers how much we care about raising healthy pigs.”

An industry panel of judges selected the 2019 Pig Farmers of Tomorrow, who all have had a Common Industry Audit completed on their farms.



Miller Inducted Into NPPC Hall of Fame

Tom Miller, an Arizona pork producer, executive director of the Arizona Pork Council and past president of the National Pork Producers Council, today was inducted into the NPPC Hall of Fame for his lifetime commitment to advocacy, leadership and advancement on behalf of pork producers at NPPC's annual business meeting – the National Pork Industry Forum – held here.

Born and raised in Iowa, Miller grew up in Boone and became interested in farming in junior high school, pursuing it by working weekends and school breaks with a veterinarian. He attended Iowa State University, where he earned a degree in animal science. After college, he moved to California, working on a ranch, where he cared for a 300-sow herd – a huge number for the 1960s – and for baby pigs until weaning.

In 1967, he moved to Arizona to work for Arizona Milling, managing a 300-sow unit; he also volunteered to establish the Arizona Pork Producers Association. He subsequently started his own pork production business and in 1975 was named Arizona's first Pork All-American.

In the 1970s, Miller was elected to serve a six-year term as Arizona's representative to NPPC and volunteered to serve the rest of his successor's term when that person resigned. Miller then was elected to the NPPC executive committee and eventually was elevated to president of the organization. While devoting time to the state and national pork organizations and running his own business, Miller helped create what likely was one of the first producer-led marketing coops.

In his role as an NPPC board member and officer, Miller was directly engaged in advocacy on using nitrites; overhauling Farm Credit; instituting two pork marketing campaigns, including Pork. The Other White Meat; and establishing the legislative Pork Checkoff. On the latter, Miller helped shepherd the process, inform producers, equip state executives and set up governance for NPPC and the then-new National Pork Board. He served as the first president of NPPC, following the 1985 implementation of the legislative Checkoff, and later served on the National Pork Board.

Miller also served as the Arizona Pork Producers Association state executive then its national contact – the de facto state executive – for many years and continues in the role today, working with the state's lone commercial pork production enterprise as well as with many hobby farmers and participating in national meetings, including NPPC's twice-yearly legislative fly-ins in Washington, D.C.

"With nearly 50 years of service to producers in Arizona and the nation, Tom Miller exemplifies lifetime commitment," said NPPC President Jim Heimerl, a pork producer from Ohio. "His courageous leadership at key moments during NPPC's history and his experience, perspective and willingness to get his hands dirty are widely recognized and very much appreciated by pork producers. For that and his continued service to our industry, we are extremely pleased to induct Tom into the NPPC Hall of Fame."



USDA Cold Storage January 2019 Highlights

Total red meat supplies in freezers on January 31, 2019 were up 7 percent from the previous month but down 1 percent from last year. Total pounds of beef in freezers were up 3 percent from the previous month and up 2 percent from last year. Frozen pork supplies were up 11 percent from the previous month but down 3 percent from last year. Stocks of pork bellies were up 27 percent from last month and up 23 percent from last year.

Total frozen poultry supplies on January 31, 2019 were up 4 percent from the previous month but down 2 percent from a year ago. Total stocks of chicken were down 4 percent from the previous month and down 4 percent from last year. Total pounds of turkey in freezers were up 29 percent from last month and up 4 percent from January 31, 2018.

Total natural cheese stocks in refrigerated warehouses on January 31, 2019 were up 1 percent from the previous month and up 6 percent from January 31, 2018.  Butter stocks were up 18 percent from last month but down 7 percent from a year ago.

Total frozen fruit stocks were down 9 percent from last month and down 5 percent from a year ago.  Total frozen vegetable stocks were down 8 percent from last month and down 9 percent from a year ago.



ANNUAL SURVEY FINDS 80% OF PRODUCERS BELIEVE BEEF CHECKOFF DRIVES BEEF DEMAND

Eighty percent of beef producers nationwide say the Beef Checkoff Program helps drive demand for beef. That is one major finding from a recent Producer Attitude Survey commissioned by the Checkoff - and conducted and reviewed by a third-party, independent research firm - to gauge beef producers’ awareness, overall sentiment and concerns about the program.

Completed in January, the survey reported from a sampling of beef and dairy producers nationwide. Using 2012 Agriculture Census statistics, the data was weighted by age, geography and type of operation to be proportionate to the number of beef and dairy farms in that region, resulting in the adjusted sample size of 1,200 producers.

“For more than 25 years, the checkoff has commissioned an outside research firm to conduct this type of survey,” said Brian Malaer, co-chair of the checkoff’s Investor Relations Working Group. “Overall, producers continue to have very favorable attitudes toward the Beef Checkoff and have consistently supported the program over time.”

The survey’s recent key findings include:
-- 80 percent of producers say the Beef Checkoff drives demand for beef.
-- 72 percent say they approve of the Beef Checkoff.
-- 68 percent say the Beef Checkoff leads to greater profitability in their own operations.

“The survey’s results tell us that producers are seeing the return on their checkoff investment,” Malaer said. “As 2019 continues, we will continue to communicate the checkoff’s work and help even more producers better understand how their dollars are helping to grow beef demand.”

Funding for the survey is requested annually through the Producer Communications Authorization Request budget with oversight by the Investor Relations Working Group within the Cattlemen’s Beef Board. To ensure unbiased results, the checkoff hires a research firm without any input from its contractors, including NCBA.

In January 2019, Luce Research conducted this independent survey by randomly calling 1,200 beef producers across the nation via landline and cellphone numbers. These producers were sourced from a list totaling 150,000 producers from all over the country. To participate, responding producers had to indicate they managed an operation that included cattle. For a sample of 1,200, the maximum statistical margin of error (95 percent confidence level) is ± 2.8 percent around any one reported result. For those producers who said they were aware of the checkoff, the maximum margin of error is ± 2.9 percent.

Luce Research is a multi-dimensional consumer and market research firm whose data-gathering technologies help organizations better understand their constituencies. Their expertise includes scientifically-driven consumer and market research, institutional insights, campaigns, large and small population polling and custom-developed surveys.

Dan Hoffman, adjunct professor of market research at University of Denver, and contractor to Luce Research, explained why the annual survey is conducted via phone vs. online polling.

“Online polling suffers from very low participation and can result in a skewed picture of the audience being surveyed,” said Hoffman. “These polls often garner emotional responses, not factual conversations. When looking at where and how the checkoff is viewed by producers, it is vitally important to use the most statistically weighted process to truly gauge these opinions.”

To view further survey results, visit www.beefboard.org. 



2018 Beef Exports Record-Large; Pork Export Volume Just Short of 2017 Record

Last year U.S. beef exports shattered the previous value record and achieved a new high for volume, according to year-end 2018 statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Pork export volume came up just short of the record set in 2017 while value slipped 1 percent year-over-year. U.S. lamb exports rebounded from a down year in 2017, largely due to stronger variety meat demand in Mexico.

Fueled by tremendous demand in South Korea, Japan, Taiwan and the ASEAN region, U.S. beef exports reached 1.35 million metric tons (mt), up 7 percent from 2017 and exceeding the 2011 record by 5 percent. Export value soared to $8.33 billion, breaking the 2017 record by $1.06 billion – an increase of 15 percent. For December only, beef export volume was down slightly from a year ago to 112,777 mt, but value still increased 4 percent to $700.2 million.

Beef export value was also record-shattering on a per-head basis, averaging $323.14 per head of fed slaughter in 2018. This was a 13 percent increase over 2017 and exceeded the 2014 record by 8 percent. Beef exports accounted for 13.5 percent of total beef production in 2018 and 11.1 percent for muscle cuts, up from 12.9 percent and 10.4 percent, respectively, in 2017.

Despite significant headwinds, 2018 pork exports reached 2.44 million mt – just 0.5 percent below the 2017 record. Pork export value was $6.39 billion, down 1 percent year-over-year and the third-highest total on record, trailing only 2014 ($6.65 billion) and 2017 ($6.49 billion). For December only, pork exports were down 5 percent from a year ago to 209,780 mt, valued at $527.4 million (down 11 percent).

Pork export value averaged $51.37 per head slaughtered in 2018, down 4 percent year-over-year. Exports accounted for 25.7 percent of total pork production, down about one percentage point from 2017. The ratio was 22.5 percent when including only pork muscle cuts – up from 22.3 percent in 2017.

Korea accounts for half of the $1 billion surge in beef exports
While demand for U.S. beef showed remarkable strength throughout the world in 2018, no market exemplified this momentum more than South Korea. Exports to Korea increased 30 percent year-over-year in volume to 239,676 mt and jumped 43 percent in value to $1.75 billion – an increase of $526 million over the 2017 record and more than double the value total posted just three years ago. Chilled beef exports to Korea increased 19 percent to 53,823 mt and climbed 29 percent in value to a record $525 million, illustrating U.S. beef’s surging success in the Korean retail and foodservice sectors. U.S. beef accounted for 58 percent of Korea’s chilled beef imports in 2018.

“There may have been no greater ag trade success story in 2018 than U.S. beef exports to Korea,” said Dan Halstrom, USMEF president and CEO. “Less than a decade removed from street protests opposing the reopening of this market, Koreans now consume more U.S. beef per capita than any international destination. This is a testament to the U.S. beef industry’s strong commitment to the Korean market and the outstanding support received from the U.S. government – through both USDA promotional funding and the negotiation of the Korea-U.S. Free Trade Agreement (KORUS), which has dramatically lowered import duties on U.S. beef.”

Since KORUS was implemented in 2012, the import duty rate on U.S. beef has declined from 40 to 18.7 percent and will fall to zero by 2026. U.S. beef’s main competitors also have free trade agreements with Korea but currently face higher duty rates than the U.S., including Australia (24 percent), Canada (26.6 percent) and New Zealand (26.6 percent).

Other 2018 highlights for U.S. beef exports include:
-    Exports to leading market Japan increased 7 percent from a year ago in volume (330,217 mt) and 10 percent in value ($2.08 billion, topping $2 billion for the first time in the post-BSE era). The United States is Japan’s largest beef supplier by value and a close second to Australia in volume, but this position is tenuous due to a widening tariff rate gap between U.S. beef and its main competitors, all of which secured tariff rate relief under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
-    Taiwan’s demand for U.S. beef continued to surge in 2018, with exports increasing 33 percent in volume (59,694 mt) and 34 percent in value ($550 million) from the previous records set in 2017. Export value to Taiwan has doubled over the past five years, setting six consecutive records, and U.S. beef holds more than 75 percent of Taiwan’s chilled beef market – the largest share of any Asian destination.
-    While total beef exports to Mexico increased only slightly year-over-year in volume to 239,110 mt, beef muscle cuts achieved strong growth – climbing 7 percent to 142,514 mt. Total export value was up 8 percent to $1.06 billion, exceeding $1 billion for the first time since 2015. Muscle cut value increased 11 percent to $828.8 million.
-    Beef exports to China/Hong Kong softened in November and December and finished the year 3 percent lower in volume at 130,129 mt. However, export value still climbed 12 percent to $1.03 billion (marking the first time since 2014 that U.S. beef exports topped $1 billion in four separate markets). This included exports to China of 7,297 mt valued at $60.8 million. China reopened to U.S. beef in June 2017 after a 13-year absence, but U.S. beef has been heavily disadvantaged by the 25 percent retaliatory duty imposed by China last year, bringing the total tariff rate on U.S. beef to 37 percent. By comparison, Australian beef pays just 6 percent and New Zealand beef is duty-free, benefiting from free trade agreements with China.
-    Led by outstanding growth in the Philippines and Vietnam and larger shipments to Indonesia, beef exports to the ASEAN region increased 20 percent from a year ago in volume (49,226 mt) and 30 percent in value ($274.6 million).
-    Strong growth in Colombia kept beef exports to South America steady with the previous year’s volume at 28,333 mt, while value set a new record at $126.2 million (up 10 percent). Exports were also higher year-over-year to Peru but declined to Chile as Brazil and Argentina’s exports to Chile surged, benefiting from weaker currencies.
-    A strong performance in mainstay market Guatemala and significant growth in Costa Rica and Panama pushed beef exports to Central America to record highs in volume (14,739 mt, up 14 percent) and value ($80 million, up 11 percent).

Solid year for U.S. pork, but second-half exports pressured by retaliatory duties
Through May 2018, pork exports to leading volume market Mexico appeared to be headed for a seventh consecutive record, topping the 2017 pace by 6 percent. But May was the last month in which exports to Mexico would increase year-over-year, due to retaliatory duties imposed in response to U.S. tariffs on steel and aluminum imports. Export volume to Mexico held up relatively well, finishing the year at 777,143 mt – 3 percent below the 2017 record. But export value took a bigger hit, declining 13 percent to $1.31 billion – the lowest since 2015. The decline in value from June through December was 24 percent, totaling $218 million, underscoring the large degree to which U.S. producers and exporters bore the cost of Mexico’s 20 percent retaliatory duty.

“The U.S. pork industry understands the vital importance of the Mexican market, and with strong industry support USMEF has intensified its efforts to retain as much of this business as possible,” Halstrom said. “This includes enhanced outreach in every sector, from large processors, to regional supermarkets, to specialty retailers and restaurant chains. While these efforts have been successful, the decline in export value clearly shows the negative impact these retaliatory duties have imposed on the U.S. pork supply chain.”

Retaliatory duties also impacted pork exports to China/Hong Kong, which fell 29 percent in volume (351,774 mt) and 21 percent in value ($851.7 million) compared to 2017. This included a 30 percent decline in pork variety meat volume to 225,414 (China/Hong Kong is the largest destination for U.S. pork variety meat). The corresponding dramatic decreases in values for feet and picnic hocks, combined with lower ham and picnic values, mean that retaliatory tariffs in China and Mexico resulted in lost value of $11.75 per head (or $860 million) from June through December 2018.

On the positive side, U.S. pork exports to Korea were record-shattering in 2018, soaring 40 percent year-over-year in volume (242,372 mt) and 41 percent in value ($670.3 million). Export value topped the previous record, set in 2011, by 35 percent as U.S. pork capitalized on Koreans’ surging pork consumption. Most U.S. pork now enters Korea duty-free under KORUS, making pork products more affordable and accessible and a perfect fit for Korean’s convenience-driven demand. Korea’s imports of U.S. pork variety meat jumped by 62 percent in volume (15,525 mt) and 68 percent in value ($45.9 million) as items such as bungs and feet made impressive gains.

Other 2018 highlights for U.S. pork include:
-    Exports to leading value market Japan were steady with 2017 in both volume (394,300 mt) and value ($1.62 billion). But similar to beef, U.S. pork’s position as Japan’s leading pork supplier is threatened by implementation of CPTPP and the Japan-EU Economic Partnership Agreement. The United States is now the only major pork supplier that has not gained tariff relief in Japan, with the most immediate impact expected in Japan’s imports of ground seasoned pork and processed pork products.
-    Fueled by remarkable growth in Colombia and solid increases in Chile and Peru, pork exports to South America reached new heights in 2018, increasing 30 percent in volume (135,298 mt) and 23 percent in value ($328.8 million). While most U.S. pork entering South America is for further processing, the U.S. industry is increasingly making inroads into the region’s rapidly growing retail and foodservice sectors.
-    Pork exports to Central America were also record-large, increasing 16 percent in volume to 86,031 mt and 12 percent in value to $201.7 million. Exports increased to mainstay markets Honduras and Guatemala, but much of the region’s growth was achieved in Panama, El Salvador, Costa Rica and Nicaragua.
-    Australia is one of the top destinations for U.S. hams (outside of Mexico and China/Hong Kong), and strong demand for hams pushed pork exports to Australia up 13 percent from a year ago in volume (80,431 mt) and 9 percent in value ($227.3 million). The U.S. also gained significant market share, climbing from 40 to 46 percent of Australia’s pork imports. Exports to New Zealand also trended higher, climbing 10 percent in volume (7,897 mt) and 12 percent in value ($25.6 million).
-    Impressive growth in the Philippines and Vietnam pushed pork exports to the ASEAN region 43 percent higher in volume (68,326 mt) and 31 percent higher in value ($168.5 million). In a down year for U.S. pork variety meat, exports to the ASEAN were a notable bright spot – more than doubling from a year ago in both volume (28,619 mt, up 129 percent) and value ($45.6 million, up 107 percent).
-    Pork exports to the Dominican Republic continued to gain momentum in 2018, easily surpassing previous records for both volume (42,669 mt, up 39 percent) and value ($92.5 million, up 30 percent).

U.S. lamb export volume largest since 2012
Mexico’s strong demand for U.S. lamb variety meat fueled a rebound in 2018 lamb exports, with combined lamb/lamb variety meat shipments climbing 77 percent in volume to 12,866 mt, the largest since 2012. Export value increased 19 percent to $23.4 million, the highest since 2014. While this was primarily driven by larger variety meat exports, lamb muscle cuts also achieved promising growth in the Caribbean, the United Arab Emirates and the Philippines. Japan and Taiwan are also potentially strong destinations, having reopened to U.S. lamb in 2018 and 2016, respectively.



USDA and FDA Announce a Formal Agreement to Regulate Cell-Cultured Food Products from Cell Lines of Livestock and Poultry

The U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) and the U.S. Department of Health and Human Services’ (HHS) Food and Drug Administration (FDA) today announced a formal agreement to jointly oversee the production of human food products derived from the cells of livestock and poultry.

FSIS and FDA released a formal agreement to address the regulatory oversight of human food produced using this new technology. The formal agreement describes the oversight roles and responsibilities for both agencies and how the agencies will collaborate to regulate the development and entry of these products into commerce. This shared regulatory approach will ensure that cell-cultured products derived from the cell lines of livestock and poultry are produced safely and are accurately labeled.

“Consumers trust the USDA mark of inspection to ensure safe, wholesome and accurately labeled products," said USDA Deputy Under Secretary for Food Safety Mindy Brashears. "We look forward to continued collaboration with FDA and our stakeholders to safely regulate these new products and ensure parity in labeling.”

“We recognize that our stakeholders want clarity on how we will move forward with a regulatory regime to ensure the safety and proper labeling of these cell-cultured human food products while continuing to encourage innovation,” said Frank Yiannas, FDA Deputy Commissioner for Food Policy and Response. “Collaboration between USDA and FDA will allow us to draw upon the unique expertise of each agency in addressing the many important technical and regulatory considerations that can arise with the development of animal cell-cultured food products for human consumption.”

Under the formal agreement, the agencies agree upon a joint regulatory framework wherein FDA oversees cell collection, cell banks, and cell growth and differentiation. A transition from FDA to FSIS oversight will occur during the cell harvest stage. FSIS will oversee the production and labeling of human food products derived from the cells of livestock and poultry.

On Oct. 23-24, 2018, FSIS and FDA held a joint public meeting to discuss the use of cell culture technology to develop products derived from livestock and poultry. The public meeting focused on the potential hazards, oversight considerations, and labeling of cell cultured food products derived from livestock and poultry.

To view the recorded webinar from the public meeting on the FSIS website at www.fsis.usda.gov/wps/portal/fsis/newsroom/meetings/past-meetings.

To view the Formal Agreement, visit the FSIS website at www.fsis.usda.gov/formalagreement or the FDA website at www.fda.gov/Food/InternationalInteragencyCoordination/DomesticInteragencyAgreements.



Formal Lab-Grown Fake Meat Agreement is "What Consumers Deserve"

Today National Cattlemen’s Beef Association President Jennifer Houston released the following statement in response to the formal agreement announced by the U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA) on lab-grown fake meat oversight:

“The formal agreement announced today solidifies USDA’s lead oversight role in the production and labeling of lab-grown fake meat products. This is what NCBA has been asking for, and it is what consumers deserve. Under the terms of the agreement, USDA will be responsible for inspecting all facilities that harvest, process, package, or label cell-cultured products derived from livestock or poultry. All product labels will also be subject to USDA’s pre-approval and verification process. We look forward to working collaboratively with the USDA and FDA on next steps, including the development of a more detailed framework concerning the cell harvest stage. Ensuring that all lab-grown fake meat products are safe and accurately labeled remains NCBA’s top priority.”



USDA-FDA Cell-Cultured Pact Good for Agriculture
American Farm Bureau Federation President Zippy Duvall

“The formal agreement between the Agriculture Department’s Food Safety and Inspection Service and the Food and Drug Administration (FDA) to jointly oversee the regulation of cell-cultured foods is a win for America’s farmers and ranchers.

 “The American Farm Bureau Federation believes USDA should have primary jurisdiction over lab-grown or cell-cultured protein. We also understand that FDA plays a role in determining the safety of cell-cultured products. We look forward to reviewing the joint framework outlining the regulatory process and will work with both USDA and FDA to ensure consumers are protected and our goals are met regarding labeling and food safety.”



China Purchases U.S. Sorghum

China made its first significant purchase of U.S. sorghum since China self-initiated anti-dumping and countervailing duty cases against the commodity in February 2018 followed by a 25 percent tariff on sorghum and other U.S. commodities in June. A sale of 2.6 million bushels was reported by USDA’s export sales report for the week of Feb. 28. – March 7, 2019. In response, National Sorghum Producers Chairman Dan Atkisson, a sorghum farmer from Stockton, Kansas, released the following statement:

"This vessel purchase is great news for U.S. sorghum, and we are thrilled to see it on the books going into the 2019 planting season as hopefully a first of many. We look forward to returning to trade with our largest export partner, and we are encouraged by not only this sale but the reported 2.2 million bushel sale to Spain, as well. We believe today’s news is a direct result of meetings between our two nations’ leaders, and we appreciate both Administrations continuing to press forward to achieve a long-term agreement in U.S. and China trade relations.”



NMPF Offers Guidance to Producers Considering New Dairy Margin Coverage Levels

With the U.S. Department of Agriculture reporting the first month of data applicable to farmer payments under the new Dairy Margin Coverage program, the National Milk Producers Federation commended USDA for helping farmers understand the scope of DMC program and offered its own example to illustrate the potential benefits of maximizing coverage under the new top margin-coverage level of $9.50 per hundredweight.

The new $9.50 “margin” (the difference between the price of milk and the cost of feed) threshold for the first 5 million pounds of a dairy farmer’s production, which replaces the old $8 per hundredweight limit under the now-lapsed Margin Protection Program, may be better tailored to expected market conditions in 2019 and future years than less-comprehensive coverage, according to an NMPF analysis.

For example: A dairy operation with an established milk-production history of 5 million pounds that elects the $9.50 coverage level for 95 percent of its production history – the new  maximum level of protection under the 2018 farm bill -- would be covered for 4.75 million pounds (95 percent of 5 million, also referred to as 47,500 cwt. – a unit covering 100 pounds of milk) of annual production during 2019. Breaking it into monthly increments, farmers maximizing coverage would be eligible to receive payments at the USDA-determined monthly payout rate on 395,800 pounds (also expressed as 3,958 cwt.) each month that the margin fell below $9.50 per hundredweight.

According to new USDA data, the January “margin” payment will be $1.51/cwt. for farmers who select $9.50 coverage – that’s the difference between the $9.50 level selected and the actual margin of $7.99/cwt. An operation maximizing coverage on its first 5 million pounds for the year would thus receive a January payment of $5,977 (the 3,958 cwt. covered for the month, multiplied by the $1.51/cwt. January difference in actual margin).

Meanwhile, under the premium rates set by Congress under the 2018 farm bill, the 2019 full-year premium for coverage at the $9.50 level on 95 percent of a 5-million-pound production history in this example would be $7,125 (47,500 cwt. times $0.15/cwt. premium fee), if the operation signs up for DMC coverage just for 2019.  If the operation makes a one-time election offered via the farm bill to sign up for DMC coverage this year through 2023 at the same coverage levels, it will be eligible to receive a 25 percent discount on its premiums. In that case the total premium cost for all of 2019 would be $5,344 (47,500 cwt. times the $0.1125/cwt. discounted premium fee).

In other words, under maximum coverage, a dairy operation would receive back more than its full annual premium with the January payment alone, if it signs up for coverage at the discounted five-year locked-in premium rate. If a farm signs up for this year only, it would still recoup most of its full-year premium from the January payout – with more payments likely, given prices forecast by current futures markets.

Dairy Margin Coverage signup is scheduled to begin on June 17. That means payment amounts for up to the first five months of the year may already be known when farmers sign up. Again, based on forecasts, it is very likely that when signup begins the benefits of $9.50 coverage will substantially outweigh the costs, given that coverage will be retroactive from January 1.

“While the cash-flow and financial situations are different for every dairy operation, farmers should strongly consider signing up their 2019 production at the maximum coverage level of $9.50 per hundredweight for 95 percent of their first five million pounds of production history,” said Jim Mulhern, president and CEO of NMPF. “The unique circumstances of already knowing what payments will be for the year’s early months, combined with the current price outlook for milk, makes it an attractive option for producers this year during a difficult time for dairy.”

Dairy operations that elect to sign up this year for DMC coverage at the discounted premium rate will be committed to pay the same discounted premium each year through 2023. That option will be available this year only, except for new dairy operations in subsequent years.



NFU Joins Coalition in Highlighting Importance of Carbon Capture

National Farmers Union (NFU) joined the Carbon Capture Coalition in submitting a letter to leaders in Congress to highlight the importance of “carbon capture research, development, and commercial deployment as an essential component of a broader strategy to decarbonize power generation and key industry sectors by midcentury” to meet climate goals.

The letter, signed by a cross-section of the Coalition’s 60 Participants and Observers, is intended to reinforce the role of carbon capture technologies in any federal policy discussions about climate, energy, infrastructure or job creation. The group expressed support for legislation including the USE IT Act that would build on the FUTURE Act to advance the use of carbon capture technologies nationwide.

“Carbon capture presents family farmers and rural communities tremendous opportunity to both better the environment and enhance quality of life in rural America,” said NFU President Roger Johnson. “These technologies create jobs, produce domestic energy, benefit the U.S. ethanol industry, and reduce carbon emissions that exacerbate climate change. So as Congress looks to reduce our nation’s carbon emissions, we proudly join the Carbon Capture Coalition in urging congressional leadership to advance federal policies that accelerate deployment of carbon capture, utilization and storage.”



Consider Corn Challenge: Just a Few Days Remain!
   
Only days remain to submit a proposal for the National Corn Growers Association (NCGA) Consider Corn Challenge II. A successful proposal will outline how the project will enable a new market for corn, have a clear path to commercial scale and use components of the corn kernel as a primary feedstock.

“Finding new and innovative uses for field corn in order to utilize 75 million bushels by 2020 is what we are striving to do,” said Director of Market Development Sarah McKay. “There is a lot of great research work going on right now in the industry, and we are hopeful that anyone who is developing bio-based materials from corn will enter the contest.”

Three to six winners will be selected for a total prize pool of U.S. $150,000. Submissions are due March 20, 2019 at 5 p.m. EST. This year’s winners will be announced at the BIO’s World Congress on Industrial Biotechnology in Des Moines, Iowa on July 8, 2019.

For more information on the contest click here: https://9sig.co/UseCorn.