Tuesday April 9 Ag News

Food Connection on UNL’s City Campus April 16

The Alliance for the Future of Agriculture in Nebraska (AFAN) and numerous agricultural clubs on East Campus have teamed up to organize Husker Food Connection. The event helps students gain a better knowledge of general agriculture within the state of Nebraska.

“The purpose of this event is to connect urban students to agriculture through something they’re familiar with: food,” said Amanda Kowalewski, Husker Food Connection Coordinator. Amanda is a senior Agricultural Economics major from Gothenburg, NE.

The event will feature a free lunch catered by Skeeter Barnes, farm equipment displays, booths by Nebraska commodity groups, and an opportunity to interact with livestock at the University of Nebraska–Lincoln City Campus Union Plaza.

The 2019 Husker Food Connection theme is “Agriculture is Everything.” “It’s important to the agricultural community to share the story of food from production to consumption. Whether you realize it or not, you rely on a farmer three times a day and the agricultural students of our University are excited to engage with the public about our industry,” says Hannah Borg, a senior Agricultural Communications major from Wakefield, NE, and the Husker Food Connection Communications Coordinator.

HFC organizers look forward to answering questions and sharing personal experiences by engaging in one on one conversations. Students and faculty are encouraged to take part in the interactive event from 10 a.m. to 2 p.m. on Tuesday, April 16.

Student organizers include representatives from campus groups such as Collegiate Farm Bureau, Agricultural Communicators of Tomorrow, and Block and Bridle. The Alliance for the Future of Agriculture in Nebraska (AFAN) is a nonprofit organization formed by leading agricultural membership groups in Nebraska. The AFAN mission is to encourage the development of environmentally responsible and economically viable livestock production in the state.



Champion Auctioneer and Livestock Market Owners “Sell” Pies and Policy on Capitol Hill

D.C. policy leaders learned about issues affecting the livestock marketing industry and participated in a mock auction during Livestock Marketing Association’s (LMA) Washington D.C. Fly In.

World Livestock Auctioneer Champion, Jared Miller, auctioned pies during Hill staff briefings for the U.S. Senate and House of Representatives. Legislative staff gained a better understanding of how the auction method of selling drives up price for producers’ livestock. Bidders from around the room joined in on the competition by raising their hands. The sale topping pie went for $100,000 of mock money. “Where else can you buy a pie for that?” joked Miller, who also owns LMA member market Lamoni Livestock Auction in Iowa.

The pie auction and briefing were just one piece of LMA’s annual D.C. Fly In. LMA members and staff also met individually with legislators and legislative staff to discuss issues that affect LMA member businesses. Participants educated policy leaders about livestock marketing and the extreme pressure their businesses face under current law.

On the top of the LMA’s list was support for the creation of a Dealer Statutory Trust. In the 2018 Farm Bill, Congress directed the U.S. Department of Agriculture (USDA) to conduct a feasibility study of Dealer Statutory Trust.

Under the Packers and Stockyards Act, markets are required to maintain a custodial account and pay sellers for livestock promptly, even if the buyer does not pay the livestock market. Under current law, the ability to recover livestock or funds when a livestock dealer defaults is extremely limited.

The creation of a Dealer Statutory Trust would give unpaid sellers of livestock first priority to reclaim livestock or, if they have been resold, the proceeds/receivables from livestock. It would not require a change in day-to-day operations. Rather, it would simply provide unpaid sellers (producers selling directly or markets selling on their behalf) priority in the event of a dealer default.

Livestock marketers in town for the Fly In also discussed the continued need for a livestock hauler Electronic Logging Device (ELD) exemption while pursuing needed Hours of Service (HOS) drive time flexibility.

LMA members also met with officials from the USDA Packers and Stockyards Division, which regulates livestock markets, packers, and dealers on payment and fair trade practices. Animal Disease Traceability was the main topic discussed in the LMA meeting with USDA’s Animal and Plant Health Inspection Service.

“Livestock markets and dealers work hard day in and day out to gain top dollar for producers’ livestock,” said Chelsea Good, LMA Vice President of Government and Industry Affairs and Legal. “I’m proud of our members who invested their time to leave the barn for the Beltway to connect with policy leaders who make decisions affecting their lives.”



Webinar Outlines 2019 Calf Market Expectations

How will the market respond after a prolonged winter created poor conditions for much of the cattle industry? An upcoming free CattleFax webinar will address that question as well as provide an outlook for the cow-calf and entire beef industry. 

The CattleFax Trends+ Cow-Calf Webinar, which is free to attendees thanks to sponsor Elanco Animal Health, will be held May 22, 2019, at 5:30 p.m. MT. To participate in the webinar and access program details, producers and industry leaders simply need to register online at https://www.cattlefax.com/#!/about. 

Even though one of the most aggressive U.S. beef cowherd expansions in the last four decades has recently slowed its pace, the rapid growth has increased beef supplies and caused cow-calf profitability to be reduced back toward long-term levels. As profits have narrowed, well-informed producers can maintain healthy margins by adjusting production, marketing and risk management plans with increasing supplies in mind.

CattleFax analysts will discuss a variety of topics in the one-hour session, including:
-    Cattle and feedstuff market projections for the next 12 to 18 months
-    Outlook of the summer and fall calf markets for 2019
-    Review of the recent Cow-Calf Survey
                                                                        
The Trends+ webinar is designed to update cattle producers about current market realities and provide producers with decision-friendly information to assist in making intelligent marketing decisions. More than 6,500 producers have benefited from the analysis and strategies shared through the webinar series since fall 2013.



USDA Announces Buy-Up Coverage Availability, New Service Fees for Noninsured Crop Coverage Policies

USDA’s Farm Service Agency (FSA) today announced higher levels of coverage will be offered through the Noninsured Crop Disaster Assistance Program (NAP), a popular safety net program, beginning April 8, 2019. The 2018 Farm Bill also increased service fees and made other changes to the program, including service fee waivers for qualified military veterans interested in obtaining NAP coverage. 

“When other insurance coverage is not an option, NAP is a valuable risk mitigation tool for farmers and ranchers,” said FSA Administrator Richard Fordyce. “In agriculture, losses from natural disasters are a matter of when, not if, and having a NAP policy provides a little peace of mind.”

NAP provides financial assistance to producers of commercial crops for which insurance coverage is not available in order to protect against natural disasters that result in lower yields or crop losses, or prevent crop planting.   

NAP Buy-Up Coverage Option
The 2018 Farm Bill reinstates higher levels of coverage, from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Producers of organics and crops marketed directly to consumers also may exercise the “buy-up” option to obtain NAP coverage of 100 percent of the average market price at the coverage levels of between 50 and 65 percent of expected production. NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production.   

Producers have a one-time opportunity until May 24, 2019, to obtain buy-up coverage for 2019 or 2020 eligible crops for which the NAP application closing date has passed.   

Buy-up coverage is not available for crops intended for grazing.

NAP Service Fees
For all coverage levels, the new NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. These amounts reflect a $75 service fee increase for crop, county or multi-county coverage. The fee increases apply to obtaining NAP coverage on crops on or after April 8, 2019.

NAP Enhancements for Qualified Military Veterans
The 2018 Farm Bill NAP amendments specify that qualified veteran farmers or ranchers are now eligible for a service fee waiver and premium reduction, if the NAP applicant meets certain eligibility criteria. 

Beginning, limited resource and targeted underserved farmers or ranchers remain eligible for a waiver of NAP service fees and premium reduction when they file form CCC-860, “Socially Disadvantaged, Limited Resource and Beginning Farmer or Rancher Certification.”

For NAP application, eligibility and related program information, visit www.fsa.usda.gov/nap or contact your local USDA Service Center. To locate your local FSA office, visit www.farmers.gov. 



Floods Impacting Ethanol Industry, Pushing Gas to 5-Year Highs

The March floods that punished the U.S. Midwest have trapped barrels of ethanol in the country's interior, causing shortages of the biofuel and helping to boost gasoline prices in the western United States. The historic floods have dealt a series of blows to large swaths of an ethanol industry that was already struggling with high inventories and sluggish domestic demand growth.

According to Reuters the ethanol shortages are one factor pushing gasoline prices in Southern California, including Los Angeles, to the highest in the country, and they could top $4 a gallon for the first time since 2014, according to tracking firm GasBuddy.

Benchmark price for ethanol used in most supply contracts initially jumped on news of the floods but has been hobbled by rising waters around the Chicago hub that have halted barges and sales. That stands in contrast to prices on the coasts, which rose dramatically - drawing in heavy imports from Brazil, the main U.S. ethanol competitor.

The floods inflicted billions of dollars in damage to crops and homes in the U.S. Midwest, and knocked out roughly 13 percent of ethanol capacity.

U.S. ethanol is made from corn and required by the government to be blended into the country's fuel supply to reduce emissions.

While some ethanol plants were flooded, the primary effect of the rising waters was to shut rail lines that serve as the main arteries for corn and ethanol deliveries.

Ethanol prices on the coasts spiked due to shortages, but Midwest producers have been unable to take advantage because of washed-out rail lines, market sources told Reuters.

"Unfortunately for anyone who was impacted by logistics issues it was a double whammy. You couldn't capture the rally," said one trader.

At Chicago's Argo terminal, the nation's main ethanol pricing hub, the cash price for ethanol fell for an eighth straight session last week to $1.29 a gallon, the longest downward skid since April of last year, according to Oil Price Information Service, which does daily assessments.

Initially, fears of widespread plant outages boosted that benchmark, but plants proved more resilient than expected, continuing to produce despite logistical challenges.

U.S. ethanol inventories were at 24 million barrels for the week ended March 29, just off a record hit a week earlier, according to U.S. Energy Information Administration data.



Crude Oil Price Surge, Seasonal Patterns Driving Gasoline Price Increases, Not Ethanol
RFA Chief Economist Scott Richman

There has been considerable discussion lately regarding the reasons for rising gasoline prices in the late winter and early spring of 2019, including the potential role of ethanol following the Midwest floods in March. However, according to an analysis released today by the Renewable Fuels Association, the recent increase in gasoline prices is driven by:
-    A surge in crude oil prices since the start of the year;
-    Typical seasonal patterns in gasoline pricing, partially reflecting the changeover to summer specifications; and
-    Refinery maintenance and unplanned outages.

Ethanol prices are at a steep discount to gasoline prices (and to other sources of octane), and inventories have recently been at record levels. While transportation challenges caused issues with delivery to isolated locations in the immediate aftermath of the floods, production was not significantly affected. In the vast majority of the country, ethanol has been helping to hold down gasoline prices for consumers.



R-CALF USA Praises Beef Checkoff Reform Legislation

Last week, legislation was reintroduced in the U.S. Senate to reform the most prominent government subsidy program in the U.S. cattle industry – the national beef checkoff program, which generates about $80 million annually from government-mandated producer assessments that many cattle producers refer to as “the cattle tax.” Senators Mike Lee (R-Utah) and Rand Paul (R-K.Y.) introduced the Voluntary Check-Off Program Participation Act, S. 934.

The bill was previously introduced during Congress’ 2017-2018 session, and was referred to the Committee on Agriculture, Nutrition, and Forestry. This year’s reintroduction will ensure the measures are again considered by the full Congress.

R-CALF USA CEO Bill Bullard said his group welcomes the bill because it imparts accountability and transparency to the beef checkoff program. He said approximately one-half of the current cattle tax, about $40 million dollars, flows to the National Cattlemen’s Beef Association (NCBA), a lobbying group that represents some of the world’s largest multinational meatpackers along with some cattle producers.

“Cross-subsidized by the current beef checkoff program, the NCBA lobbies against cattle-producer initiative on the basis that it does not want the government involved in the cattle industry. Yet, the NCBA is the single-largest benefactor of the $80 million government-mandated cattle tax that funds government speech.

“This outcome isn’t what U.S. cattle producers bargained for when the checkoff was first started in the late 80s,” Bullard concluded.

“The voluntary bill, S. 934, will allow producers to vote freely with their pocketbooks regarding whether they are individually satisfied with the checkoff’s performance,” said Bullard.



Congress Should Expeditiously Consider and Ratify USMCA, AED Tells Lawmakers

On April 9, Associated Equipment Distributors (AED) delivered a letter to congressional leadership expressing support for the United States-Mexico-Canada Agreement (USMCA) and urging lawmakers to expeditiously consider and ratify the accord between the United States’ closest trading partners.

“As a U.S.-based organization with companies operating in the United States, Canada and Mexico, AED’s members are uniquely impacted by the trade uncertainty in North America,” said AED’s President & CEO Brian P. McGuire. “The USMCA modernizes and strengthens the trade ties between the three countries, which will boost economic growth and job creation here in the United States.”

The letter highlighted that while the U.S. construction equipment industry has experienced a period of economic expansion, trade uncertainty is a top concern for equipment dealers. “For American construction equipment companies to remain competitive in the global market, we need strong international agreements, such as USMCA,” wrote McGuire. “The USMCA will help restore predictability to North American trade markets, while limiting disruptions to the construction equipment supply chain that causes delays in product delivery and increased costs for equipment purchasers.”



NASS Invites Comments on Proposed Changes to the 2019 Organic Survey

In preparation for the 2019 Organic Production Survey, the USDA National Agriculture Statistics Service (NASS) is seeking public input on proposed changes to several specific questions and:
-    whether the proposed collection of information is necessary for the proper performance of the functions of the agency, and will have practical utility;
-    the accuracy of the agency's estimate of the burden of the proposed collection of information including the validity of the methodology and assumptions used;
-    ways to enhance the quality, utility, and clarity of the information to be collected; and
-    ways to minimize the burden of the collection of information on those who are to respond.

DEADLINE for Comments: Monday, April 29, 2019.



The 11th Annual Ag Innovation Showcase Sets New Roots in Minneapolis

Larta Institute's Ag Innovation Showcase is proud to announce its 11th Annual Conference with the theme, “The Power of Convergence: Food, Health, and Energy.” The event will feature novel innovations across the spectrum of food production, health sciences, and sustainability, all with the common goal to provide global wellness through the healing power of nutrition.

Hosted at the Guthrie in downtown Minneapolis, The Ag Innovation Showcase will take place from September 9-11, 2019 and will feature keynote speakers, industry panels, intimate networking receptions, and presentations highlighting select technology and research institutions. The Showcase will be delving into the thriving health-based food and beverage industry of the Twin Cities by inviting local vendors to share their goods and participate in the event.

“We are delighted to bring the Ag Innovation Showcase to Minneapolis for the 11th edition in September 2019. The region is a thriving hub of ag and food activity and home to many world-class companies and institutions. Also, it is especially inviting to innovators and to the continued development of what is a remarkable ecosystem. The Showcase will serve as a beacon to the world, shining a spotlight on the Greater MSP region,” says Larta Institute Founder & CEO, Rohit K. Shukla.  

Founded by Larta Institute and the Donald Danforth Plant Science Center in 2009, The Ag Innovation Showcase has been a hub for innovation in the food and ag industry for the past decade and famous for its intimate setting, effective network, and community-oriented mission. Previously hosted in St. Louis, the event will be setting new roots in the Minneapolis-St. Paul region to facilitate the growth of consumer and producer awareness about the budding future of agriculture in the confluent fields of food, health, and energy.

Over the past decade, Ag Showcase has hosted over 200 emerging companies, representing 27 unique countries, and has assisted in facilitating over $1.7B in funding for our Showcase Alumni. 

For more information, please visit the Ag Innovation Showcase website: www.agshowcase.com. 



Golden Harvest brings more choices to farmers, expands soybean portfolio with new trait technology

Golden Harvest demonstrates its continued dedication to the local needs of farmers by expanding its soybean portfolio with the latest trait technology. By adding the new Enlist E3™ and LibertyLink GT27™ traits to its current portfolio – which already includes Genuity® Roundup Ready 2 Yield®, Roundup Ready 2 Xtend® and Liberty Link® soybeans – Golden Harvest offers farmers access to more trait choices than almost any other seed company.

“By pairing the latest trait technology with best-in-class genetics, farmers are better equipped to protect their yield potential against today’s toughest threats,” said Dennis Storm, Golden Harvest soybean product manager. “We are committed to meeting the local needs of our farmers across all the varying conditions throughout the Midwest. By adding Enlist E3 and LibertyLink GT27 soybeans to our portfolio, we are even more confident in our ability to do so.”

Golden Harvest will have trials for both Enlist E3 and LibertyLink GT27 soybeans for the 2019 growing season, with broad commercial availability of both traits for 2020 planting. Enlist E3 soybeans offer advanced herbicide tolerance through three modes of action with tolerance to 2, 4-D choline, glyphosate and glufosinate. Having received Chinese import approval in January, the Enlist E3 trait technology will be available for 2020 planting in 30 Golden Harvest® soybean varieties. The LibertyLink GT27 soybean technology, which offers glyphosate and Liberty® herbicide tolerance, will be offered in 20 Golden Harvest soybean varieties.

“Year after year, we see superior performance from the Golden Harvest soybean portfolio,” said Storm. “We know farmers have a lot of options when it comes to where they buy their seed, which is why we continue to invest in their success. Giving farmers access to all the major soybean trait platforms is another way we can help them manage difficult weed spectrums, and increase their yield potential to effectively improve their profit potential.”

The breadth and quality of the Golden Harvest seed portfolio showcases the pledge of an incremental $400 million investment made in 2018. For 2019 spring planting, Golden Harvest has a strong portfolio of high-performing, strong-quality seeds that are still available. For the 2020 planting season, farmers can look forward to an expanded portfolio, which will include 17 new RR2 Xtend soybean varieties.



CASE CELEBRATES 50 YEARS OF SKID STEER MANUFACTURING

CASE Construction Equipment celebrated 50 years of skid steer manufacturing with a ceremony on Wednesday, April 3rd at its Wichita, Kan., plant. CASE first built skid steers in 1969 at its Burlington, Iowa, facility, before eventually moving production to Wichita.

"Skid steers completely transformed the construction equipment landscape, and CASE has played a leading role in the evolution and development of this product category throughout the last 50 years," says Michel Marchand, vice president - North America, CASE Construction Equipment. "These machines reflect every bit of our heritage from construction to agriculture, and we are committed to helping our customers build strong communities and businesses with the help of CASE skid steers built here in the U.S.A."

Global CASE and CNH Industrial leaders Carl Gustaf G ransson (president of construction, CNH Industrial), Larry Bryce (chief operating officer of construction equipment, CNH Industrial) and Marchand were on-hand to mark the milestone, as were local CASE employees and members of the manufacturer's Dealer Advisory Board. The event was hosted by Mike Peterson, plant manager, CNH Wichita.

CASE skid steers and compact track loaders (CTL) are made "For the World" in Wichita - meaning that every CASE skid steer or CTL sold and operated anywhere in the world today comes from Wichita. The plant is designated at the "Silver Level" for World Class Manufacturing (WCM), one of the global manufacturing industry's highest standards for the integrated management of manufacturing plants and processes.