Monday April 29 Ag News

Property Taxes and Flood Damage
J. David Aiken - NE Extension Water and Agricultural Law Specialist

Under Nebraska law, land and buildings are valued for property tax purposes on January 1 of each year. There are no statutory provisions for changing that property valuation due to property damage, although some county assessors have done so in the past.

Nebraska state senators have approved an amendment that would establish a process for reducing land and building values damaged by natural disaster. Legislative Bill 512 was amended on first reading to include a process where property values would be prorated when the property was damaged by natural disaster before October 1 of any year. The property would be valued in its original undamaged state, in its damaged state, and in its restored/replaced state.

Let’s look at an example of how this would work. Fred Flintstone owns Nebraska farmland valued at $2,000/acre on January 1, 2019. Fred’s land is damaged May 1 and its damaged value is $800/acre. Fred is unable to reclaim or restore his land by the end of the year.

The adjusted property value of Fred’s damaged land for 2019 would be (4/12 x $2000/acre for the first four months) + (8/12 x $800/acre for the last eight months) or $1203/acre. Fred’s 2020 property tax payments would be around 40% below what they would have been if no natural disaster had occurred. Remember that in Nebraska the property taxes we pay in the spring and fall of 2019 are the 2018 property taxes, so 2019 property taxes won’t be paid until spring and fall of 2020.

LB 512 has passed the first reading and has two rounds of legislative debate left. The damaged property assessment provisions may be modified at the next round of legislative debate. I expect LB 512 will be enacted by the Unicameral and signed by the Governor, but time will tell.



Avoiding Injury from Seed Corn Maggot
Justin McMechan - NE Extension Crop Protection and Cropping Systems Specialist

We have seen periodic injury from seed corn maggot that has reduced stands of Nebraska corn and soybeans. The greatest risk for seed corn maggot injury is when a green manure or animal manure is incorporated just before planting. The female flies are attracted to lay eggs on sites with decaying organic matter. The seed corn maggot will also feed on germinating crop seeds and can reduce seedling vigor and, if abundant enough, reduce plant stands.

The following University of Minnesota recommendations can help minimize injury from seed corn maggots.

Cultural Control
-    Delay planting until soil temperatures promote rapid seed germination.
-    Avoid planting for at least two weeks after fresh organic materials have been incorporated into soil.
-    Degree-day models can guide decisions about adjusting planting date to avoid periods with high larval abundance. Seedcorn maggot development is estimated using a base temperature of 39°F (3.9°C) for the degree-day calculation.
-    Avoid planting during peak fly emergence. For the first three generations this occurs when 354, 1080, and 1800 degree days have accumulated, respectively since January 1.

Use of a labelled insecticidal seed treatment on corn or soybeans should provide adequate protection against seed corn maggot, except when there are high densities of these insects. Growers not using insecticidal seed treatments can modify their planting dates to minimize injury from these insects by monitoring growing degree days. There are several generations of seed corn maggots in Nebraska.

The Nebraska Climate Office is providing degree-day data useful for predicting seed corn maggot development. See https://mesonet.unl.edu/page/data for this and additional pest prediction maps.

The first generation of fly emergence is past peak in southeastern and south-central Nebraska.



One-on-One Farm Finance and Ag Law Clinics this May

Openings are available for one-on-one, confidential farm finance and ag law consultations being conducted across the state each month. An experienced ag law attorney and ag financial counselor will be available to address farm and ranch issues related to financial planning, estate and transition planning, farm loan programs, debtor/creditor law, water rights, and other relevant matters. The clinics offer an opportunity to seek an experienced outside opinion on issues affecting your farm or ranch.

Clinic Sites and Dates
    Grand Island — Thursday, May 2
    Fairbury — Wednesday, May 8
    North Platte — Thursday, May 9
    Norfolk — Wednesday, May 15
    Lexington — Thursday, May 16
    Norfolk — Wednesday, May 29

To sign up for a free clinic or to get more information, call Michelle at the Nebraska Farm Hotline at 1-800-464-0258.  The Nebraska Department of Agriculture and Legal Aid of Nebraska sponsor these clinics.



NEBRASKA EXTENSION’S CHUCK HIBBERD INDUCTED INTO NIFA HALL OF FAME

Chuck Hibberd, dean and director of Nebraska Extension, was inducted into the U.S. Department of Agriculture’s National Institute of Food and Agriculture Hall of Fame on April 25 at a ceremony in Washington, D.C.

The hall of fame was established in 2011 to recognize individuals whose exceptional contributions to the institute’s mission at the local, regional, national or international level have made a positive impact on the lives of citizens.

“I am truly humbled to be inducted into the NIFA Hall of Fame,” Hibberd said. “This honor speaks to the strength of the partnership between NIFA and our land-grant universities and our mutual commitment to bring science to action in ways that transform practice and improve the lives and livelihood of Americans.”

Before assuming his current role in 2012, Hibberd was director of extension and associate dean of agriculture at Purdue University. He was also director of the Panhandle Research and Extension Center in Scottsbluff. Most recently, Hibberd was tapped to coordinate the University of Nebraska’s systemwide effort to help Nebraskans recover and rebuild following widespread flooding.

Hibberd received a bachelor’s degree in agriculture from Nebraska, and a master’s degree in animal science and doctoral degree in animal nutrition from Oklahoma State University.

The National Institute of Food and Agriculture’s mission is to invest in and advance agricultural research, education and extension to solve societal challenges. To learn more, visit https://nifa.usda.gov/impacts.



NET Awards Grant for Subsurface Drip Irrigation System with Feedlot 

The Nebraska Environmental Trust has awarded a grant to construct a subsurface drip irrigation system that uses feedlot effluent to irrigate crop fields. The practice will be evaluated as a potential means to better manage the state's limited water resources, an ongoing research priority of the University of Nebraska.

The irrigation system is under construction at the university’s Mitchell Agricultural Laboratory, site of the feedlot and research plots, said Xin Qiao, irrigation and water management specialist and the principal investigator on the project. The Mitchell Lab is five miles north of the Panhandle Research and Extension Center in Scottsbluff.

Water that runs off the 105-pen feedlot into an effluent holding pond will be pumped through the subsurface drip system to irrigate crop research fields, Qiao said. On some plots, air will be added to water by injecting it into the drip irrigation system to test its effect on water quality and crop yield.

The plots will be divided into two sections, one planted to sugar beets and the other to corn, and 20 zones (10 in each section). Half of the zones will have air injected. Soil samples and water samples will be collected and tested for quality.

The Nebraska Environmental Trust grant provides $287,605 for the two-year project, which begins this spring. The project is a collaboration between the Panhandle Center and work by Matteo D’Alessio and Chittaranjan Ray at the Nebraska Water Center.

Underground emitter tape is being installed in the fields this week, and other equipment, such as controllers and air injectors, is expected to be installed in early May. Mazzei, a California company that manufactures the injectors, is providing the injectors at cost, Qiao said.

Re-use of wastewater is one option for making optimal use of limited water resources. In the North Platte River Basin, a moratorium on irrigation expansion and allocations on irrigation water have been in effect for years, with the goal of reducing streamflow depletions caused by irrigation water pumping. Wastewater could be an alternative source of irrigation water.

The outcome of this study may provide a best-management practice to treat feedlot runoff and increase crop yield for corn and sugar beets in western Nebraska, Qiao said.



Iowa Corn Growers Association® Accomplishes Key 2019 State Legislative Priorities

The 2019 Iowa legislative session ended over the weekend and Iowa Corn Growers Association® (ICGA) President Curt Mether, a farmer from Logan, says notable progress occurred on legislative issues positively impacting Iowa agriculture.

“We accomplished key progress in ICGA’s state legislative priorities this year,” said Mether. “We are excited to hear the extension of the biofuels infrastructure program and additional funding for the conservation cost share program that are vital to the successes of Iowa corn farmers.”

2019 ICGA State Legislative Successes include:
-    Ethanol Infrastructure – Iowa's Renewable Fuels Infrastructure Program (RFIP) received a full year of funding at $3 million. The RFIP provides cost-share dollars to retailers that choose to install flex fuel pumps and other E15, E85, and/or biodiesel compatible infrastructure, increasing consumer access to renewable fuels.
-    Beginning Farmer Tax Credit – The Beginning Farmer Tax Credit passed and is awaiting Governor Reynold’s signature.
-    Conservation Cost Share – To the additional funding passed last year with Senate File 512, cost share programs were maintained to previous funding levels including $8.3 million for soil conservation cost share and $2.4 million for the Water Quality Initiative.
-    Ag Appropriations – The legislature included additional funding in the amount of $500,000 for the Ag Extension and Diagnostic Lab as well as money for IDALS to help with fighting foreign animal disease.
-    Ag Trespass Bill- Further protection and security for Iowa livestock producers against special interest groups with ill intentions to exploit the livestock operation.

“ICGA’s highly engaged grassroots members are a big factor in the success of ICGA’s state legislative policy efforts,” state Mether. “Our members guide our policies by discussions at roundtable events, surveys and our grassroot summit. We appreciate the members who have fostered relationships with their elected officials in bringing key issues to the table to support Iowa agriculture.”



USDA Extends Deadline to May 17 for Producers to Certify 2018 Crop Production for Market Facilitation Program Payments

USDA extended the deadline to May 17 from May 1 for agricultural producers to certify 2018 crop production for payments through the Market Facilitation Program (MFP), which helps producers who have been significantly affected by foreign tariffs, resulting in the loss of traditional exports. USDA’s Farm Service Agency (FSA) extended the deadline because heavy rainfall and snowfall have delayed harvests in many parts of the country, preventing producers from certifying acres.

Payments will be issued only if eligible producers certify before the updated May 17 deadline.

The MFP provides payments to producers of corn, cotton, sorghum, soybeans, wheat, dairy, hogs, fresh sweet cherries and shelled almonds. FSA will issue payments based on the producer’s certified total production of the MFP commodity multiplied by the MFP rate for that specific commodity.

“Trade issues, coupled with low commodity prices and recovery from natural disasters, have definitely impacted the bottom line for many agricultural producers,” said FSA Administrator Richard Fordyce. “The MFP payments provide short-term relief from retaliatory tariffs to supplement the traditional farm safety net, helping agricultural producers through these difficult times. Weather conditions this fall, winter and early spring have blocked many producers from completing harvest of their crops, and we want to make sure producers who want to finalize their MFP application have an opportunity.”

Producers can certify production by contacting their local FSA office or through farmers.gov.

U.S. Secretary of Agriculture Sonny Perdue launched the trade mitigation program to assist farmers suffering from damage because of unjustified trade retaliation by foreign nations. FSA implemented MFP in September 2018 as a relief strategy to protect agricultural producers while the Administration works on free, fair and reciprocal trade deals to open more markets to help American farmers compete globally. To date, more than $8.3 billion has been paid to nearly 600,000 applicants.

The MFP is established under the statutory authority of the Commodity Credit Corporation Charter Act and is administered by FSA.



Big Blue River Compact Meeting to Be Held May 15

The 46th annual meeting of the Kansas–Nebraska Big Blue River Compact Administration will be held in room 124 at the Kansas Department of Agriculture, 1320 Research Park Drive in Manhattan, on Wednesday, May 15, 2019, at 9:30 a.m. Anyone interested in water-related activities within the Big Blue and Little Blue River Basins in Kansas and Nebraska is encouraged to attend.

The Kansas–Nebraska Big Blue River Compact was entered into in 1971. The purpose of the compact is to promote interstate comity, to achieve equitable apportionment of the waters of the Big Blue River Basin and promote the orderly development thereof, and to encourage an active pollution abatement program in each state.

The Compact Administration is composed of a federally appointed Compact Chairman, currently W. Don Nelson of Lincoln, Nebraska; two state appointed representatives: David Barfield of the Kansas Department of Agriculture–Division of Water Resources and Gordon “Jeff” Fassett of the Nebraska Department of Natural Resources; and two citizen representatives: Sharon Schwartz of Washington, Kansas, and Larry Moore of Aurora, Nebraska.

Questions about the meeting can be addressed to Chris Beightel, program manager for water management services at KDA–DWR, at 785-564-6670 or Chris.Beightel@kda.ks.gov. Additional information about the Big Blue River Compact and the annual meeting can be found on the KDA website at agriculture.ks.gov/big-blue-compact.



NCGA to EPA: Finalize E15 Parity by June 1

The National Corn Growers Association (NCGA) today submitted comments on the Environmental Protection Agency’s (EPA) proposed rule to allow year-round sales of 15 percent ethanol blends, or E15, by eliminating the outdated barrier that currently requires retailers in many areas of the country to stop selling E15 during the summer months.

“By allowing E15 to receive the same summer volatility adjustment EPA permits for E10, retailers will be able to offer drivers E15 year-round, providing choice to their customers without an interruption in sales between June and September,” NCGA President Lynn Chrisp wrote in the submitted comments.

“Corn growers have advocated for this change for several years, and we agree with EPA’s assessment that the conditions that led EPA to provide the original volatility adjustment for E10, at a time when 10 percent was the highest ethanol blend available, are ‘equally applicable to E15 today,’” Chrisp added.

In addition to being beneficial for farmers, higher blends of renewable fuels such as E15 also lower fuel prices for drivers and reduce emissions, improving air quality and providing greater greenhouse gas reductions.

While NCGA supports EPA’s proposal to provide parity for E15 with standard 10 percent ethanol blends, NCGA cautioned EPA against finalizing proposed Renewable Identification Number (RIN) market rule changes that would be counterproductive to greater biofuels blending supported by the E15 rule. NCGA urged the EPA to take steps to ensure the complex RIN market proposal does not weigh down the final E15 rule, which is needed by June 1 to avoid an interruption in E15 sales.



NFU Supports E15 Waiver, Pathway for Mid-Level Ethanol Blends

In the midst of significant financial stress in the U.S. farm economy, the U.S. Environmental Protection Agency (EPA) must deliver on the promises of President Trump and the intent of Congress to expand the use of biofuels and, therefore, demand for U.S. farm products, according to National Farmers Union (NFU).

The family farm organization submitted comments today to EPA on the agency’s proposed rule to allow year-round use of E15 gasoline. While the rule stands to deliver a long-sought win for the biofuels industry and family farmers, NFU President Roger Johnson said a stronger commitment to further expanding biofuel use is needed from EPA.

“The long and short of it is that the EPA under this administration has repeatedly destroyed direct demand for biofuels, metaphorically piling more and more corn on top of our burdensome oversupply,” said Johnson. “What we need from EPA as they finalize the E15 waiver is a major step in the direction of allowing year-round sales of higher level blends of ethanol in gasoline. That’s the way we cut into oversupply. That’s the way we better our environmental impact. And that’s the way we save consumers more money at the pump.”

In its comments, National Farmers Union urged EPA to expeditiously approve E15 for year-round use and to ensure the rule does not amount to a cap on higher level blends of ethanol, like E30.

“Farmers Union is eager for EPA to follow through on its promises to get an E15 waiver out of the door by June 1,” said NFU President Roger Johnson. “But we are concerned that certain provisions within EPA’s rulemaking unnecessarily work against expanded use of higher level blends of ethanol.”

Provisions within EPA’s E15 proposed rule are limited in scope to E15 gasoline only, without taking advantage of the benefits of mid-level blends of ethanol and making the prospects of using these blends harder to achieve.

NFU also proposed EPA separate its proposed RIN reforms from the E15 rule until the agency has considered the potential implications of the reforms and made such findings public. The organization highlighted RIN-market volatility introduced by EPA’s actions regarding small refinery exemptions. “Under the Trump Administration, EPA’s exemption handouts to oil refiners have destroyed demand for at least 2.6 billion gallons of ethanol, or nearly one billion bushels of American grown corn,” said Johnson.

“It is EPA’s responsibility to follow through on the President’s promises to family farmers and on Congress’s intent to expand biofuel use in our transportation sector,” said Johnson. “We’re calling on the agency to begin to right their wrongs by finalizing an E15 waiver that includes a pathway for expanded use of higher level blends of ethanol.”



RFA “Strongly Supports” EPA Proposal to Allow Year-Round E15

In detailed comments submitted to the U.S. Environmental Protection Agency (EPA) today, the Renewable Fuels Association (RFA) said it “strongly supports” EPA’s proposal allowing 15 percent ethanol blends (E15) to take advantage of the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 during the summer months.

According to RFA, EPA’s proposed regulatory fix would allow year-round sales of E15 in conventional gasoline markets for the first time, finally opening the marketplace more broadly to a fuel that provides consumers higher octane, lower cost, and reduced tailpipe emissions.

“E15 already has a proven track record for saving drivers money and reducing emissions, but the fuel has been unfairly held back by an antiquated and anticompetitive EPA regulatory barrier,” said RFA President and CEO Geoff Cooper, noting that last October President Trump promised to eliminate the summertime ban on E15. “President Trump was correct when he called the summertime prohibition on E15 ‘unnecessary’ and ‘ridiculous,’ and we are pleased that EPA’s proposed regulatory amendments would finally allow gasoline retailers across the country to offer E15 to their customers year-round. When finalized, this rule will enhance competition and provide greater consumer access to cleaner, more affordable fuel options.

“However, just 32 days remain before the start of the summer driving season,” Cooper continued. “To honor the President’s commitment, EPA must act quickly to complete this rule and ensure it is finalized in a manner that truly the opens the market to E15.”

RFA notes that American consumers have driven more than 8 billion hassle-free miles on E15 without a single reported problem since it was first commercially introduced in 2012. In addition, E15 typically sells for 3-10 cents per gallon less than E10 gasoline, meaning drivers are saving money with each fill-up. Further, more than 93 percent of the vehicles on the road today are legally approved by EPA to use E15.

RFA’s comments also discouraged EPA from finalizing any of the four proposed Renewable Identification Number (RIN) market reforms. “While RFA is supportive of enhancing transparency in the RIN marketplace, we do not believe any of the four primary RIN reform options in the proposed rule would accomplish that objective,” according to the comments. “In fact, RFA is concerned that some of the major changes proposed by EPA may be counterproductive, undermine the efficient operation of the RIN market mechanism, and greatly expand administrative burdens for all parties affected by the RFS.”



Growth Energy Comments Urge EPA to Finalize E15 Year-Round Rule by June 1

Growth Energy, the nation’s leading association of ethanol producers and supporters, filed comments with the U.S. Environmental Protection Agency (EPA) in support of a proposed rule allowing year-round sales of E15 – gasoline blended with 15 percent ethanol.

“Unless the EPA acts quickly, the summer market for E15 will be lost, which means higher fuel prices for consumers and another devastating blow to America’s rural workforce,” said Growth Energy CEO Emily Skor. “We cannot afford to let anything derail this opportunity to help revitalize growth in the heartland, and urge regulators to get this rule over the finish line by June 1, just as President Trump directed. Our submission today provides clear guidance on how the agency can strengthen the final rule, open new markets for American biofuels, and protect investments that are working to deliver cleaner, more affordable fuel options to consumers.”

In Growth Energy’s formal comments to the agency, Skor emphasized that: “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 ...”

Added Skor, “… EPA should finalize and promulgate the final rule providing RVP relief to E15 as expeditiously as possible, but no later than June 1, 2019, in time for the summer driving season in order to minimize disruption of the E15 supply and distribution system and to provide as much clarity to regulated parties as possible.”



ACE strongly supports EPA’s proposal to allow E15 year-round, opposes RIN market reforms

The American Coalition for Ethanol (ACE) welcomed the Environmental Protection Agency’s (EPA) proposal to extend the 1-psi Reid vapor pressure (RVP) waiver to E15 during the summer months but opposed the Agency’s controversial and unnecessary proposals to reform the Renewable Identification Number (RIN) credit market in comments submitted today to EPA’s proposed rule "Modifications to Fuel Regulations to Provide Flexibility for E15; Modifications to RFS RIN Market Regulations." 

In its comments, ACE strongly supported EPA’s proposal to extend the 1-psi RVP waiver to E15 but urged the Agency to use this rulemaking as a timely opportunity to take steps to deregulate the fuel market for higher ethanol blend use by allowing all mid-level ethanol blends to receive the 1-psi waiver, as well as to discard of its reforms to how RIN credits are handled under the RFS. Below are a few excerpts from ACE CEO Brian Jennings’ written comments:

“ACE strongly supports EPA’s proposal to modify its interpretation of CAA sec. 211(h)(4) so gasoline blends “containing 10 percent ethanol,” including E15, would receive the 1-psi RVP waiver. This interpretation of 211(h)(4) is legally-defensible, is consistent with Congressional intent, and reflects the realities of today’s motor fuel market.

“E15 is a clean, safe, and low-cost fuel which can be used in more than 90 percent of the cars on the road today. Since E15 typically costs 2 to 10 cents per gallon less than E10 and gasoline and has a higher octane rating (88 AKI), allowing its sale year-round would give consumers the option to buy a higher quality fuel and save money at the pump. It would also reduce refiner RIN costs and open market access for surplus corn.”

On EPA’s proposed RIN reforms, ACE believes they “would have the effect of reducing liquidity in the RIN market, consolidate power in the hands of certain oil refiners, and limit fuel wholesalers, blenders and retailers from using RIN value to sell higher blends of ethanol. Taken together, the RIN reforms constitute a poison pill which is incompatible with the goal of making E15 available to consumers year-round.”

“With just over 30 days to go until the start of the 2019 summer driving season, time is of the essence. We encourage EPA to move forward to finalize a rule allowing RVP relief for E15 but to cast aside the unnecessary and harmful proposals to reform the RIN market. If EPA insists on moving forward with the RIN reforms, we urge EPA to separate these issues in a final rulemaking.”



NBB Opposes RIN Reform Proposals, Supports Opening Market to E15

The National Biodiesel Board (NBB) today filed formal comments on the Environmental Protection Agency’s proposed Modifications to Fuel Regulations to Provide Flexibility for E15; Modifications to RFS RIN Market Regulations rules. On behalf of members, NBB expressed appreciation for the agency’s effort to enable growth of biofuel use by allowing year-round E15 sales. However, NBB respectfully disagreed with EPA’s proposal to modify RIN market regulations without first showing data-based evidence of problems within the RIN market.

“The proposed RIN market reforms are unnecessary, as EPA has yet to see data-based evidence of RIN market manipulation. Reforming a system that, while certainly not perfect, is working as intended with no evidence of manipulation has the potential to disrupt and even undermine the system that obligated parties use to demonstrate compliance with the RFS,” NBB writes in the comments.

“We ask that the agency use this Proposed Rule as an opportunity to provide transparency to the small refinery exemption process and address the timing of granting these exemptions,” NBB continues.

“Increasing transparency in the small refinery exemption process is what is actually needed to prevent manipulation in the RIN market,” NBB concludes.

Kurt Kovarik, NBB’s Vice President of Federal Affairs, added, “Right now, retroactive small refinery exemptions are having the most negative impact on RIN markets, destroying demand for more than 360 million gallons of biodiesel and renewable diesel. Rather than unneeded reforms that could further disrupt the RIN market, EPA should increase transparency around the small refinery exemptions, end its practice of encouraging retroactive petitions, and ensure that annual volumes that it set are met.”