Wednesday April 3 Ag News

Repairing Flood-Damaged Fields 
John Wilson - NE Extension Educator

In the words of the immortal Yogi Berra, “It’s like déjà vu all over again.” At least that’s the way it seems for some farmers adversely affected by the 2011 Missouri River flood. I hope our current flooding will not be the duration of the 2011 flood; it definitely impacts many more farmers over a larger area.

Even if the flooding is short term, there are still some important things we learned about bringing flooded fields back into production in 2011 that are just as applicable today. From our experience in 2011, farmers found that they needed to work on things in three stages to repair flood-damaged fields.

1. Remove debris and sediment.
We grouped debris into two general categories: plant material and other debris. The kind of "other" debris will make a difference on how it is handled. Plant material, primarily corn stalks and trees, can be burned on the tract of land where it was found (if it is zoned agricultural) and the ashes buried there.

If a layer of corn stalks or other crop residue isn’t too deep, it can be incorporated into the soil with normal tillage operations. One concern, and this will be a recurring theme, is to not perform tillage when the soil is too wet. This will cause compaction and create more of a problem than it solves. Also, burying high-carbon crop residues may temporarily tie up nitrogen in the soil as microbes break it down.

Other debris we encountered varied from a lot of smaller “junk” such as tires, posts, and boards to propane tanks and vehicles to wooden decks, cabins and whole homes that had floated into fields. There are two options for this type of debris. It can be buried onsite if the land is zoned agricultural, or it can be taken to an approved landfill.

In the case of buildings, an asbestos inspection may be required by the Nebraska Health and Human Services (NHHS). Call 402-471-0386 to see if you need an inspection. For other information on handling miscellaneous debris, contact the Waste Management Section of the Nebraska Department of Environmental Quality (NDEQ) at 402-471-4210.

Sedimentation from floods can pose a great challenge for crop production on agricultural land. The difference in texture of the deposition and the native soil below can cause major production issues. In 2011, we encountered deposits that varied from an inch or two to over 30 feet deep. The depth of the deposition will determine how it is best handled:
-    0-2 inches: incorporate with normal tillage operations.
-    2-8 inches: incorporate with chisel or moldboard plow.
-    More than 8 inches: spread or remove to a depth of 8 inches or less and incorporate as listed above.
-    Tillage in the native soil should be the depth of the sand plus 1.5 times the depth of sand; for example, you would till 10 inches deep for 4 inches of sand [4 + (1.5 x 4) = 10].
-    Avoid tillage or other field operations until soil is dry enough to reduce the chance of compaction.

2. Repair Erosion
The degree of erosion can vary from a few inches to many feet and different levels will need to be managed differently.
-    Tillage – if soil can be smoothed and farmed following a normal tillage operation
-    Earth Moving – if erosion is too deep to be corrected with tillage, but can be filled, then farmed. Fill eroded areas or top dress with native soil from other parts of the field, depending on the depth of the erosion.
-    Abandonment – may be the only option if erosion is too deep to correct economically, even with earth moving.

If you’re using sediment depositions to fill eroded areas, use native soil from another area in the field for the final three feet to avoid droughty areas.

Avoid field operations until the soil is dry enough to reduce chances of compaction. After major eroion repairs, sample the soil in the repaired area. (Consider sampling from both the repaired area and undisturbed area to determine if fertility should be managed differently in each.) Use traffic lanes if making multiple trips in the same field to correct erosion.

3. Manage Other Factors
-    Soil Crusting. Surface soil texture changes and the loss of structure can cause effects resembling compaction. This can restrict root penetration and reduce water infiltration. Tillage should remedy a shallow (less than 2-inch) crust. You guessed it… don’t do tillage when the soil is too wet!
-    Wind Erosion and Planting Cover Crops. Sedimentation and the removal of crop residues from the soil surface may lead to wind erosion. The easiest way to reduce this is by seeding a cover crop as soon as conditions permit. There are several options:
+            Aerial seeding success depends on timely rains and may not be as effective because of a lack of seed to soil contact. However, this does allow the earliest seeding in a field where ground operations might be impossible. The whole field can be done at once, regardless of conditions.
+            Broadcast seeding followed by light tillage provides better seed-to-soil contact, but is dependent on being able to get into a field. Often the whole field may not be seeded at the same time.
+            Drilling gives the best seed to soil contact and seed distribution which leads to more rapid germination and establishment. Also, drills may provide some soil smoothing and cause less compaction than tillage to incorporate seeds.

Besides reducing wind erosion, cover crops significantly increased corn yields (+30 bu/ac) but not soybean yields in 2012 on ground that was flooded in 2011. We don’t know if cover crops will have the same effect on yields in a flood of shorter duration. This study was conducted on a field that was under water for over three months in 2011.



RECOVERING FLOODED PASTURES
Bruce Anderson, NE Extension Forage Specialist

Flooded pastures are a mess.  After water recedes, what needs to be done so recovery can occur?

First of all, be safe.  Who knows what might have been left behind.  Then, before doing any recovery efforts, alert local FSA and NRCS offices that you experienced this problem and discuss what assistance they may be able to offer.  Do this first!  You might be ineligible for assistance if you do work before receiving authorization.

Then, after water recedes and soils firm up, remove debris and repair fences and water sources.  Be sure to have water sources tested for nitrates and contaminants.  Especially test any surface water like ponds or remaining standing water from the flood.

Next, evaluate sediment levels.  Pasture plants may have a tough time emerging through any more than two or three inches of sediment so expect poor stands any place where you have thick deposits.  Remove thick deposits if possible.

Erosion may not be a big problem in many areas.  However, make any repairs or apply other erosion control measures as needed.  Also check for any chemical contamination.  While it’s unlikely due to dilution by all the flood water, specific sites may be affected, especially if chemical containers were part of the debris.

Don’t even consider grazing until all the previous steps have been taken.  Once pastures dry out, allow plants extra time and growth before initiating grazing.  And when animals do graze, be sure to leave taller stubble than usual to both keep plants healthy and to minimize animal consumption of any flood contaminants remaining on surface soil.

It’s a lot of work to recover flooded pastures.  It can be done if you follow the right steps.

GIT R DONE
A little nice spring-like weather always causes an outbreak of diesel fever among farmers.  Before you start working your row crop land, however, let’s take a look at your alfalfa.

We are getting closer and closer to field work time.  In fact, many folks already are anxious to apply fertilizer, spray fields, and even chop stalks.

If you also have alfalfa, though, it is critical that you take a little time to check those fields over the next couple weeks to make sure you don’t miss making some important decisions.

First is weed control.  Last fall provided excellent weather conditions, both moisture and temperature, to start a bumper crop of winter annual weeds like mustards, pennycress, and wild oats or downy brome.  If you want to prevent these weeds from possibly damaging your first cutting, you must act now to apply the right herbicides before your alfalfa develops much growth.

Next comes evaluating your alfalfa stand.  With all the alternative cropping and forage options available to you, there is no good excuse for having low production from fields due to a thin stand of alfalfa.  If alfalfa stands in your fields have declined to the point where you should make additions like oats for extra hay this year or orchardgrass and festulolium for more permanent help, these plantings need to be done now, before your alfalfa gets too much of a head start and overwhelms later new seedlings.  Or maybe you just need to rotate to another crop and start a whole new field of alfalfa.

I know you are tempted to rush ahead to prepare for corn and bean planting.  But don’t forget about your alfalfa.  Even a short delay could be too late.



Governors Meet with Corps of Engineers to Call for Change to Missouri River Management

Today, Governor Mike Parson,  Iowa Governor Kim Reynolds, and Nebraska Governor Pete Ricketts met with the U.S. Army Corps of Engineers (USACE) and the Federal Emergency Management Agency (FEMA) to hear an updated assessment of flood damage and look ahead on the Missouri River outflow. However, the primary purpose was to identify regional solutions for recovery and levee repairs.

“It’s long past time for change,” said Governor Parson. “We must begin a serious discussion about how we improve flood control on the Missouri River. One third of Missouri’s most productive farmlands’ fate rests in the hands of those who manage our rivers - the Corps. The Corps maintains one of the nation’s largest flood-control systems on the Missouri River mainstem, but the devastating flooding we are experiencing and the previous record 2011 flooding have demonstrated the current system is insufficient to protect us.”

After the 2011 flood, the Governors of Iowa, Kansas, Missouri, Nebraska, North Dakota, South Dakota, and Wyoming agreed that flood control was their number one priority. Today’s discussion marked the first step forward in Missouri River basin states reasserting their leadership in guiding the federal government’s management of the river.

“It’s time for a coordinated, consistent approach to Missouri River Management, levee reconstruction, and a long-term regional improvement plan,” said Governor Reynolds. “Today’s meeting was about each state presenting a united front to achieve a new level of effective response to severe flooding."

“Nebraska is just starting to recover and rebuild after the most widespread natural disaster in our state’s history,” said Governor Ricketts. “Today, we had a clear message for the Army Corps: We want to see people and communities put first.  As we rebuild, we are asking for the Corps and FEMA’s help in cutting red tape and rebuilding bigger and better than before to keep people safe. The three Governors committed to working together to change how the river is managed.”

All three Governors agreed their states are committed to taking a stronger and more active role in guiding the federal government’s management of the Missouri River. They also agreed that the number one priority is flood management and people.

“Our citizens cannot continue to risk their lives, homes, livestock, and futures on a flood-control system that is insufficient to protect them,” said Governor Parson.



LEAD FELLOWSHIP APPLICATIONS AVAILABLE FOR GROUP 39

Fellowship applications for Nebraska LEAD (Leadership Education/Action Development) Group 39 are now available for men and women involved in production agriculture or agribusiness.

“Up to 30 motivated men and women with demonstrated leadership potential will be selected from five geographic districts across our state," said Terry Hejny, Nebraska LEAD Program director.

In addition to monthly three-day seminars throughout Nebraska from mid-September through early April, Nebraska LEAD fellows also participate in a 10-day national study/travel seminar and a two-week international study/travel seminar.

Seminar themes include leadership assessment and potential, natural resources and energy, agricultural policy, leadership through communication, Nebraska’s political process, global perspectives, nuclear energy, social issues, understanding and developing leadership skills, agribusiness and marketing, advances in health care, and the resources and people of Nebraska’s Panhandle.

The Nebraska LEAD Program is designed to prepare spokespersons, problem-solvers and decision-makers for Nebraska and its agricultural industry.

In its 38th year, the program is operated by the nonprofit Nebraska Agricultural Leadership Council, in collaboration with the University of Nebraska–Lincoln’s Institute of Agriculture and Natural Resources, Nebraska colleges and universities, businesses and industry, and individuals throughout the state.

To request an application, email leadprogram@unl.edu or call 402-472-6810. Requests can also be sent to 104 ACB, University of Nebraska-Lincoln, 68583-0940. Applications are due no later than June 15.

For information about the selection process, visit https://lead.unl.edu.



EXPLORING THE ROLE OF CORN SUSTAINABILITY IN THE BEEF SUPPLY CHAIN

The National Corn Growers Association participated in the U.S. Roundtable for Sustainable Beef’s Feed Transparency Summit at McDonalds Headquarters in Chicago last week. Representatives from the major grain aggregators, feed yards, packers, brands and retailers, as well as non-governmental organizations (NGOs) were also present.

“Continuing to be a part of these conversations is extremely important, as corn and DDGs are a primary component of rations fed to beef cattle,” said NCGA First Vice President and Iowa farmer Kevin Ross. “The meeting was the first step towards exploring opportunities to pilot a collaborative project between the grain and beef value chains to improve transparency. Consumers are asking more and more questions about where their food comes from. The summit brought together stakeholders from across the beef supply chain to discuss that.”

Each group in attendance had the opportunity to expand upon the challenges and opportunities within their industry and shared their perspectives on what the broader value chain needs to be aware of.

“Special attention was given to the role of investors in pushing grain aggregators, packers, and brands and retailers towards having public commitments to sustainability and measurable metrics and targets,” Ross added. “We shared NCGA’s sustainability goals and initiatives with the group, so they were aware of what we already have in place and what we are working towards to help demonstrate corn’s positive impacts to the environment and the beef value chain.”

Moving forward, the group agreed to continue discussions on publicly available sustainability metrics and data. Attendees representing NCGA included: Nathan Fields, vice president of production and sustainability; Sarah McKay, director of market development; Kevin Ross, Iowa farmer and NCGA first vice president; Ken Harman, Illinois farmer and NCGA board member; Brandon Hunnicutt, Nebraska farmer and NCGA board member and Paul Hodgen, Indiana farmer and Indiana Corn Marketing Council board member.



Weekly Ethanol Production for 3/29/2019

According to EIA data analyzed by the Renewable Fuels Association, ethanol production expanded 24,000 barrels per day (b/d), or 2.5%, to an average of 999,000 b/d, equivalent to 41.96 million gallons daily. The four-week average ethanol production rate declined 0.6% to 996,000 b/d—equivalent to an annualized rate of 15.27 billion gallons. This represents the smallest 4-week average production rate in 99 weeks, and the first time since Oct. 2017 to fall below one million b/d.

Stocks of ethanol were 24.0 million barrels, 1.9% below the prior week’s high.

There were no imports for the 20th week in a row. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of January 2019.)

Gasoline supplied to the market ticked higher to 9.131 million b/d (383.5 million gallons per day, or 139.98 billion gallons annualized). Refiner/blender net inputs of ethanol decreased 1.2% to 909,000 b/d—equivalent to 13.93 billion gallons annualized.

Expressed as a percentage of daily gasoline demand, daily ethanol production increased to 10.94%.



U.S. Soy Leaders Visit China on Experience Today’s U.S. Soy Advantage Tour

As part of the continued, multi-country tour to promote U.S. Soy, leaders from the U.S. Soybean Export Council (USSEC), the American Soybean Association (ASA), and the United Soybean Board (USB) will hold meetings this week with Chinese importers in Beijing and Shanghai. The meetings are a part of USSEC’s efforts to maintain and further build relationships with exporters and stakeholders in international markets.

“U.S. soybean farmers work hard every year to deliver a high-quality product to customers around the world,” said Jim Sutter, CEO, USSEC. “Our mission at the U.S. Soybean Export Council (USSEC) is to help our growers remain competitive by building global demand and expanding market access for U.S. Soy.”

Consumers globally are demanding soy products in record volume and U.S. exports to other countries have grown significantly over the past year. To ensure this demand continues, USSEC is focused on short and long-term strategies to increase availability of innovative, nutritious and quality U.S. Soy.

As part of these strategies, USSEC is conducting a tour called Experience Today’s U.S. Soy Advantage in key priority markets. The purpose of these meetings is to remind customers of the benefits of U.S. Soy, thank them for their trust in American soybean farmers, and foster U.S. Soy interests. To date, events have been held in numerous markets across the world.

“U.S. soybean farmers and exporters should know that USSEC is investing in markets that represent future growth opportunities for U.S. Soy. We believe these discussions are having a positive impact on our current and future growth opportunities,” affirmed Sutter.



Fertilizer Prices Mostly Lower Now

Retail fertilizer prices are mostly lower for the fourth week of March 2019, according to retailers tracked by DTN. This marks the fifth week in a row in which at least some prices were declining, and the first week in which a majority of prices were lower.

Six of the eight major fertilizers' prices were lower compared to last month, although the drop was fairly minor. DAP had an average price of $509/ton, MAP $534/ton, potash $385/ton, urea $401/ton, UAN28 $269/ton and UAN32 $318/ton.

Two fertilizers were higher compared to the prior month, but the increase was fairly slight. 10-34-0 had an average price of $470/ton and anhydrous $597/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.36/lb.N, UAN28 $0.48/lb.N and UAN32 $0.50/lb.N.

All eight of the major fertilizers are now higher compared to last year with prices shifting higher. MAP is 5% more expensive, both DAP and urea are 8% higher, potash is 10% more expensive, 10-34-0 is 11% higher, UAN28 is 14% more expensive, UAN32 is 17% more expensive and anhydrous is now 18% higher compared to last year.



USDA Dairy Products February 2019 Production Highlights

Total cheese output (excluding cottage cheese) was 991 million pounds, 0.5 percent above February 2018 but 9.7 percent below January 2019.  Italian type cheese production totaled 440 million pounds, 3.3 percent above February 2018 but 8.3 percent below January 2019. American type cheese production totaled 394 million pounds, 0.9 percent below February 2018 and 10.4 percent below January 2019.  Butter production was 165 million pounds, 2.9 percent below February 2018 and
12.9 percent below January 2019.

Dry milk products (comparisons in percentage with February 2018)
Nonfat dry milk, human - 154 million pounds, down 2.6 percent.
Skim milk powder - 35.8 million pounds, down 4.8 percent.

Whey products (comparisons in percentage with February 2018)
Dry whey, total - 74.9 million pounds, down 16.4 percent.
Lactose, human and animal - 98.8 million pounds, up 14.5 percent.
Whey protein concentrate, total - 39.1 million pounds, down 0.9 percent.

Frozen products (comparisons in percentage with February 2018)
Ice cream, regular (hard) - 51.1 million gallons, down 7.7 percent.
Ice cream, lowfat (total) - 32.3 million gallons, down 4.7 percent.
Sherbet (hard) - 2.59 million gallons, down 13.5 percent.
Frozen yogurt (total) - 4.55 million gallons, down 1.6 percent.



American Farm Bureau Concerned about Labor, Trade if Border Closed

The American Farm Bureau Federation is urging the administration to make sure that any steps undertaken to tighten enforcement at the U.S. border do not create more uncertainty for agricultural producers.

“Right now, farmers and ranchers are toughing it out,” said AFBF President Zippy Duvall. “Many of our products are caught up in a trade dispute. Mother Nature has devastated the livelihoods of tens of thousands of producers. Prices for many commodities remain depressed. We are doing the best we can in a very challenging environment.

“While our members support border security, they are increasingly anxious about what ‘closing the border’ might mean for their farms and ranches. This is especially true for growers who have had H-2A applications approved and are expecting their workers to arrive on time, ready to help tend and harvest this year’s crops. We are hopeful the administration will take concrete steps to ensure that H-2A workers can arrive in time for the work that needs to be done.

“If further efforts are undertaken to secure the border, we want to make sure farmers and ranchers are not adversely affected by any of these efforts and that producers who depend on international markets and workers have an assurance that their farm businesses are not jeopardized.”



Farmers Union Urges Trump Against ‘Disastrous’ Closing of the Southern Border

Amidst escalating rhetoric and threats from President Donald Trump to close the U.S.-Mexico border, National Farmers Union (NFU) today insisted the President avoid such a “disastrous” decision, which would effectively cripple trade with U.S. agriculture’s top trading partner.

NFU President Roger Johnson released the following statement in response to the President’s remarks:

“Without regard for the American family farmer, rural resident or consumer, President Trump is yet again risking essential trade markets and our country’s once-pristine trading reputation. Shutting down the U.S.-Mexico border would be disastrous for trade with our top agricultural trading partner, and the effects would be consistent with the numerous other trade disruptions the President has self-inflicted on our country: lost markets and lower prices for products grown and raised by family farmers and ranchers.

“For two years, President Trump has dug American agriculture into a tremendous hole. We’ve lost markets that took decades to build, and worse yet, we’ve lost our reputation as a reliable trading partner. Threats to close our border worsen this reputation, digging our hole deeper and depressing farm prices for years to come.

“Many American farm families are already in dire financial strain because of a drastic decline in farm prices over the past five years. Unfortunately, the President’s tactless, flailing approach to trade has exacerbated the situation. In order to begin to fill the hole he has singlehandedly dug, he must work to repair relationships, not make them worse."



Study Examines Contribution of American Lamb Checkoff Program

The American Lamb Checkoff Program has positively contributed to American lamb demand and industry profits, according to the Texas A&M University 2019 report "Return on Investment in the American Lamb Checkoff Program" conducted by agricultural economists Gary Williams, Ph.D., and Dan Hanselka.

After extensive econometric modeling, researchers concluded that the American Lamb Checkoff Program added from 2.4% to 2.7% of the annual value of retail lamb. The study measures 2002 to 2018, the time period during which the American Lamb Board (ALB) has been conducting programs. This new study has similar results compared to five years ago, when the last study was released.

This white paper covers both traditional and nontraditional US lamb markets and compiles relevant data from the Livestock Marketing Information Center, U.S. Department of Agriculture, industry reports on lamb sales, and other reputable sources. The paper discusses factors that affect seasonal supply, the role of US and imported lamb, impact on all industry segments, opportunities to alter the US seasonal supply, and case studies of producers who have shifted season of production to meet the needs of their customers. 

Researchers went on to write: "With modest funds available for promotion, the ALB succeeded in substantially enhancing the annual value of U.S. lamb consumed." The American Lamb Checkoff Program's promotion program is about $1.5 million a year, with another $0.5 million invested in education and research programs. Administration costs must be less than 10 percent of yearly collections.

The new study indicated that this 2.4% to 2.7% "lift" is the result of increased consumption of lamb and a more modest increase in retail price. ALB promotion programs have helped increase the U.S. production share of lamb consumption to "some extent over time."

"These results are a win for every member of the American lamb industry," says ALB Chairman Dale Thorne, a Michigan lamb producer and feeder. "The purpose of our checkoff is to increase demand for American Lamb and enhance opportunities for all segments to profit. This extensive analysis tells us that we remain on the right track with our promotion programs."

Price of American lamb is of particular interest to the industry. While the effect of lamb price on product demand has declined in recent years, a 10 percent increase in the price of lamb leads to a decline of about 6 percent in lamb demand. When it comes to competitive meats, a 10 percent decline in the price of beef results in about a 5 percent decline in the quantity of lamb demanded while the price of pork is insignificant as a driver of lamb demand. As for poultry, U.S. consumers do not consider it to be a substitute for lamb, said the report.

Consumers' "habit persistence" has a statistically significant effect on U.S. lamb consumption and has increased among current lamb eaters during recent years. Habit persistence means that past consumption influences current preferences and demand. So, according to this study, the more that U.S. consumers can be enticed to choose American lamb, the more likely they are to continue doing so.

Another measure of checkoff program contribution to the industry is the cost-to-benefit ratio. The Texas A&M study reported that the average return to industry stakeholders for every $1 invested into the American Lamb Checkoff Program is approximately $14.20.

By law, the checkoff program must undergo an economic return on investment analysis every five years. 



Speakers to discuss legal protections for animal ag at 2019 Stakeholders Summit

The Animal Ag Alliance announced today that discounted registration rates for the 2019 Stakeholders Summit, themed A Seat At The Table, have been extended through April 12th. The event will be held May 8-9 at the InterContinental at the Plaza Hotel in Kansas City, Missouri. The hotel block at the official Summit hotel is full. An overflow room block is available at the Hampton Inn & Suites Kansas City Country Club Plaza for Summit attendees until April 15th or until rooms are sold out. To view the agenda, register and book your hotel, visit http://summit.animalagalliance.org.

One topic that will be on the table at Summit is how animal activists continue to find new and different ways to challenge animal agriculture and other animal industries in the courtroom. Their litigation strategies are often coordinated with legislative, media/public relations and federal agency engagement. Summit attendees will hear from two seasoned animal law attorneys who have decades of experience in handling high stakes litigation and public relations battles against animal activist groups. Attendees will learn about the topics and trends that affect their businesses and organizations, including proactive steps that may be taken to avoid litigation issues and best practices when litigating with these groups.

Speakers include John Simpson and Michelle Pardo, partners at Duane Morris LLP, a law firm with more than 800 attorneys in offices across the United States and internationally.
-    John Simpson is experienced in the conduct of complex, protracted federal court litigation and has a deep background in federal administrative law involving multiple U.S. regulatory programs. Simpson achieved a national profile in the area of animal law and animal rights litigation. He tried a landmark case under the Endangered Species Act to a defense verdict for the client in a case that received international media attention.
-    Michelle Pardo has developed extensive experience in animal law and animal rights litigation and regulatory counseling, including representation of businesses or entities in the entertainment, agricultural, food production, educational and research spaces whose operations involve animals or animal products or services.

Be sure to check the Summit website for the most up-to-date Summit information. You can also follow the hashtags #AAA19 for periodic updates about the event. For general questions about the Summit please contact summit@animalagalliance.org or call (703) 562-5160.

Get involved:
Show your support for the Alliance’s outreach efforts by becoming an official Summit sponsor today! For 2019 sponsorship opportunities, please visit http://summit.animalagalliance.org. For more information, contact Allyson Jones-Brimmer at ajonesbrimmer@animalagalliance.org.

Thank you to our 2019 Summit sponsors: Watt Global Media, Farm Journal Media, Meatingplace, National Provisioner, American Feed Industry Association, National Pork Producers Council, National Cattlemen’s Beef Association, National Pork Board, Smithfield, United Soybean Board, Elanco, National Turkey Federation, Dairy MAX, Farm Credit, Country Folks, National Biodiesel Board, Summit Livestock Facilities, United Egg Producers, Cobb-Vantress, Inc., Council for Biotechnology Information, Protect the Harvest, Agri Beef, American Farm Bureau Federation, American Veal Association, BPI Technology, Inc., Progressive Dairyman, Kemin, National Chicken Council, Live Oak Bank, North Carolina Farm Bureau, Phileo Lesaffre Animal Care, Vivayic, Eggland’s Best, Brakke Consulting, Inc., Food Industry Environmental Network, Kansas Farm Bureau and Kansas Soybean.

The Alliance also thanks the following members for their continued support of Summit and other Alliance programs: U.S. Poultry & Egg Association, Merck Animal Health, Charleston|Orwig, Diamond V, Zoetis, Alltech, Inc., Aviagen Group, Bayer Animal Health, Boehringer Ingelheim, Cattle Empire, LLC, Dairy Farmers of America, Genus PLC - PIC/ABS, Hendrix Genetics, Hy-Line North America LLC, Iowa Soybean Association, Midwest Dairy, Nutrien, Provimi North America, Inc. and Seaboard Foods LLC.



Three Factors Impacting Profitability for Farm Supply in 2019

The agronomy and farm supply sector will be stressed through 2019, and profitability for ag retailers could face a multi-pronged threat. Poor weather last fall and so far this spring have combined with stressed farm financials to pressure ag retailer margins and impact farmer decisions that could reduce sales volumes, according to a new report from CoBank’s Knowledge Exchange Division.

Increased costs in the form of operating expenses for ag retailers, including labor, equipment and other expenses, will potentially rise due to a compressed or hard-hitting spring planting season.

“The near-term outlook for ag retailers and agronomy departments does raise some concern,” said Will Secor, grain and farm supply economist at CoBank. “As always, there’s a lot riding on spring weather. If farmers and ag retailers have ample time to get in the fields and make up time that was lost last fall, that will ease the pressure. However, a compressed spring will increase costs and could have impacts that last throughout the growing season.”

Three Drivers Impacting Farm Supply Outlook
Poor Weather – Bad weather throughout much of the Midwest last fall kept farmers and applicators out of the fields, pushing much of that fieldwork to spring. And now with flooding throughout much of the Midwest, that fieldwork will be pushed further into the year. As a result, ag retailers will likely be stretched to fulfill service requests. To meet the needs in their areas, some ag retailers may rent additional equipment, hire more seasonal labor or pay additional overtime hours. On the other hand, ag retailers that have significant capacity in labor or equipment may welcome a compressed, hard-hitting spring.

Stressed Farm Financials – As commodity prices have declined, farmers are increasingly price shopping and looking to cut costs. Variable costs like fertilizer, seed and crop protection products are key targets. Fertilizer volume and seed choices are becoming more constrained by farm finances. Farmers may pull back on macronutrient fertilizers and are less likely to apply micronutrients or try biologicals. Delayed farmer decisions can also be linked to weak farm financials. Combined with a decrease in prepays, ag retailers are facing greater inventory risk and more difficult inventory decisions. Accounts receivable risk for ag retailers will likely increase as cash farm income dropped nearly ten percent in 2018.

Fertilizer Prices – Fertilizer prices are expected to increase as the spring application season kicks into high gear. This should provide a good margin opportunity for ag retailers who purchased product before the run-up in prices last fall. Ag retailers who purchased inventory at high prices last fall that are still unpriced going into the spring, face uncertainty. If retail prices do not increase to meet the prices paid, margins will shrink.

“Profitability will be pressured for most ag retailers and agronomy departments in 2019,” said Secor. “The USDA is predicting higher farm income in 2019, which we could see the effects of in 2020. However, many farmers will be cash-strapped for the current planting season and that will certainly impact ag retailers.”



DOT, New Leader Collaborate on Autonomous Dry Spreader

DOT Technology Corp., Saskatchewan, Canada, and New Leader Manufacturing, Cedar Rapids, Iowa, announced their collaboration on a state-of-the-art dry spreader for the DOT Power Platform. This agreement will advance autonomous agriculture by strengthening an already robust offering of DOT-ready implements, including the SeedMaster 30-foot drill, the Connect PLU S120 Sprayer and C40 Coulter, and the SeedMaster grain cart.

This week, the New Leader engineering team unveiled a CAD drawing of their concept at the demonstration hosted by DOT Technology Corp. at the University of Arizona, Maricopa Research Farm.

"New Leader is known for designing and manufacturing innovative, high quality broadcast spinner spreaders that lead the industry," said Norbert Beaujot, president and founder of DOT Technology Corp. "The company has a well-known history of leveraging technology to make its equipment more productive and effective. We are very excited to work together with them to offer farmers the opportunity to have a G5 spreader on their DOT Power Platform."

New Leader is designing a custom dry spreader based on their NL5000 G5 for the DOT Power Platform. The G5, through its patented swath width control technology, lets operators apply nutrients to the soil with pinpoint accuracy. The G5 can spread material in up to 16 sections, thereby reducing overlap, decreasing nutrient waste, and optimizing the placement of nutrients; making it a perfect accessory for farmers pursuing precision fertilizer application.

"We're proud to be working with DOT on this exciting project. Both companies are committed to bringing versatile equipment to the marketplace that meets the needs of this ever-changing industry. We're confident the combined solution between our companies will bring a real opportunity for growers to increase productivity and efficiency," said Rob Rudolphi, Director of Global Business at New Leader Manufacturing.

As DOT Technology Corp. increases the number of implement partners it is working with, farmers will have more implements they can use on their power platforms, thus increasing the versatility of the Power Platform.

"We are keen to continue working with other implement manufacturers who are seeking to extend their products into autonomous farming," said DOT CEO Leah Olson-Friesen. "Our collaboration with companies like New Leader will broaden DOT's value to farmers significantly, enabling them to spend more of their time focusing on the overall operation of their farms."

The innovative DOT Power Platform is helping farmers in myriad ways, by utilizing the mobile, diesel-powered, machine to handle a large variety of implements commonly used in agriculture. Through the continuous development of artificial intelligence capabilities, DOT reduces greenhouse gas emissions and creates efficiencies such as: approximately 20 percent savings on fuel, labour, and equipment capital costs -- resulting in a reimagination of how farming is and can be done.

DOT Technology Corp. is located in Saskatchewan, Canada, and was established in 2017. It is a technology company that manufacturers DOT, a patented autonomous diesel-powered platform. New Leader Manufacturing was established in 1939 and is a family-owned business located in Cedar Rapids. It manufactures industry-leading New Leader crop nutrient applicators, and Hi-Way deicing spreaders and road maintenance equipment.