Monday July 29 Ag News

LENRD Board discusses groundwater management strategies

Groundwater quality and quantity are top priorities of the Lower Elkhorn Natural Resources District (LENRD).  The LENRD board & staff meet each month to develop and implement management plans for the future of our natural resources.

     At their July meeting, the board adopted the proposed changes to the LENRD’s Groundwater Management Area Rules and Regulations, and those changes will become effective on August 24, 2019.

LENRD Assistant Manager, Brian Bruckner, said, “The changes will further outline the rules and regulations by adding some definitions for terms that relate to current groundwater management strategies to complement the recent adoption of the Lower Platte River Basin Plan and the LENRD’s Integrated Management Plan.”  A complete summary of the proposed changes is available at the LENRD office in Norfolk and on the district’s website.

     The board also approved a Streambank Stabilization Project Policy.  Area flooding has caused several streambanks to erode in places where they haven’t in the past.  Due to the extensive river system across the district, the board made the decision to focus resources on public infrastructure.  The policy states that the district will need to partner with one or more public entities on streambank stabilization projects in the future.

     The LENRD Board is also waiting to hear if funding has been secured through a grant with the Federal Emergency Management Agency for flood protection for the city of Battle Creek.

The 2 reservoirs that have been proposed for the area, south of Battle Creek, are a 160-acre pool for approximately $17 million and a 1,200-acre pool for $36 million.  Battle Creek’s City Council met in May and voted to explore options for a 1,200-acre flood-control reservoir on the south side of Battle Creek.

LENRD General Manager, Mike Sousek, said, “There are multiple benefits to think about when considering a project of this size.  First and foremost is flood reduction.  Along with that are the recharge benefits as well as recreation.”

     The next LENRD board meeting will be Thursday, August 22nd at 7:30 p.m. at the LENRD office at 1508 Square Turn Boulevard in Norfolk.  Stay connected with the LENRD by subscribing to their monthly emails at www.lenrd.org.



Farm Credit Services of America Reports Further Softening of Farmland Values in First Half of 2019

Farmland values slipped some in the first half of 2019 in Iowa, Nebraska and South Dakota. But on the whole, the real estate market for cropland remained stable as values continue to slowly adjust to the current margin environment.

The value of 64 benchmark farms tracked by Farm Credit Services of America (FCSAmerica) declined an average of 0.59% in the first six months of 2019. Since the market’s peak in 2013, cropland values are down 20.1% in Iowa, 21.2% in Nebraska and 12.8% in South Dakota in FCSAmerica’s semiannual benchmark farmland study.

“Despite continued tight commodity price margins in 2018, real estate values remained stable and were supported by a favorable interest rate environment, market facilitation payments and equilibrium in the supply and demand levels for real estate,” said Tim Koch, FCSAmerica’s chief credit officer.

Iowa farmland experienced the biggest decline in FCSAmerica’s latest benchmark farmland study. However, values in the state still are up 2.7% compared to a year ago.

Modest declines in Nebraska and South Dakota in the later half 2018 extended into 2019 for a drop of 1.4% and 1.3% since last July.

Of Iowa’s 21 benchmark farms, 10 decreased in value, three increased and eight saw no change. Ten benchmark farms in Nebraska lost value, five increased and three were unchanged. In South Dakota, values dropped on five farms. The remaining 18 farms held even. Wyoming continues to see values for cropland and pastureland increase. However, the limited number of farmland sales in the state makes it difficult to accurately track trends.

Farmland sales across FCSAmerica’s territory were down in the first two quarters of 2019 compared to the same period in 2018. South Dakota saw the biggest decline so far this year, with 26.7% fewer sales. In Iowa, sales were down 11%, while Nebraska’s combined sales for irrigated and dry cropland dropped 18.4%.

The average quality of land has not changed in the past year, and buyer demand for high quality ground remains strong.



USDA Opens Signup for Market Facilitation Program

Signup opens today for the Market Facilitation Program (MFP), a U.S. Department of Agriculture (USDA) program to assist farmers who continue to suffer from damages because of unjustified trade retaliation from foreign nations. Through MFP, USDA will provide up to $14.5 billion in direct payments to impacted producers, part of a broader trade relief package announced in late July. The sign-up period runs through Dec. 6.

“Our team at USDA reflected on what worked well and gathered feedback on last year’s program to make this one even stronger and more effective for farmers. Our farmers work hard, are the most productive in the world, and we aim to match their enthusiasm and patriotism as we support them,” said Agriculture Secretary Sonny Perdue.

MFP payments will be made to producers of certain non-specialty and specialty crops, as well as dairy and hog producers.

Non-Specialty Crops
MFP payments will be made to producers of alfalfa hay, barley, canola, corn, crambe, dried beans, dry peas, extra-long staple cotton, flaxseed, lentils, long grain and medium grain rice, millet, mustard seed, oats, peanuts, rapeseed, rye, safflower, sesame seed, small and large chickpeas, sorghum, soybeans, sunflower seed, temperate japonica rice, triticale, upland cotton and wheat.

MFP assistance for 2019 crops is based on a single county payment rate multiplied by a farm’s total plantings to the MFP-eligible crops in aggregate in 2019. Those per acre payments are not dependent on which of those crops are planted in 2019. A producer’s total payment-eligible plantings cannot exceed total 2018 plantings. View payment rates by county.

Dairy and Hogs
Dairy producers who were in business as of June 1, 2019, will receive a per hundredweight payment on production history, and hog producers will receive a payment based on the number of live hogs owned on a day selected by the producer between April 1 and May 15, 2019.

Specialty Crops
MFP payments also will be made to producers of almonds, cranberries, cultivated ginseng, fresh grapes, fresh sweet cherries, hazelnuts, macadamia nuts, pecans, pistachios and walnuts. Each specialty crop will receive a payment based on 2019 acres of fruit or nut bearing plants, or in the case of ginseng, based on harvested acres in 2019.

More Information
Payments will be made in up to three tranches, with the second and third tranches evaluated as market conditions and trade opportunities dictate. If conditions warrant, the second and third tranches will be made in November and early January.

MFP payments are limited to a combined $250,000 for non-specialty crops per person or legal entity. MFP payments also are limited to a combined $250,000 for dairy and hog producers and a combined $250,000 for specialty crop producers. However, no applicant can receive more than $500,000. Eligible applicants also must have an average adjusted gross income (AGI) for tax years 2015, 2016, and 2017 of less than $900,000, or 75 percent of the person’s or legal entity’s average AGI for those tax years must have been derived from farming and ranching. Applicants also must comply with the provisions of the Highly Erodible Land and Wetland Conservation regulations.

More information can be found on farmers.gov/mfp, including payment information and a program application.



Regional Soil Fertility Workshops Planned across Iowa

The cost of managing soil fertility in Iowa continues to change, with increased fertilizer input costs and a rising demand for nutrients from higher-yielding crops.

To help producers understand the changes, Iowa State University Extension and Outreach is hosting four workshops in August called “Soil Testing Interpretations and Recommendations: Maximizing Return on Investment.”

The workshops will lead farmers through the basics of soil testing, analytical tests, calculating crop nutrient removal, understanding return on investment from fertilizer applications, how crop response correlates to soil test levels and what is known about crop response to micronutrients.

“These workshops provide producers the skills to best allocate fertilizer input dollars on their farms,” said Terry Basol, field agronomist with ISU Extension and Outreach.

Angie Rieck-Hinz, field agronomist with ISU Extension and Outreach, said producers are already thinking about next year’s fertility decisions, ahead of fall harvest.

She said the workshops are designed to help farmers understand their current soil nutrient situation, the amount their crops are using in a growing season and what needs to be added.
Soil Fertility Workshop details and locations

All workshops run from 9 a.m. to noon.
-    Aug. 15. ISU Extension and Outreach Marion County office. Registration is $30 per person and pre-registration is required by Aug. 7. Enrollment is limited to 30. Call 641-842-2014.
-    Aug. 21. ISU Extension and Outreach Mitchell County office. Registration is $40 per person and pre-registration is required by Aug. 19. Enrollment is limited to 30. Call 641-732-5574.
-    Aug. 22. Northwest Research and Demonstration Farm near Calumet. Registration is $40 per person and pre-registration is required by August 20. Enrollment is limited to 30. Register by emailing Joel DeJong, at jldejong@iastate.edu, or call the ISU Extension and Outreach Plymouth County office at 712-546-7835.
-    Aug. 27. ISU Extension and Outreach Hardin County office. Registration is $40 per person and pre-registration is required by Aug. 23. Enrollment is limited to 30. Call 641-648-4850.

Registration is limited and is required. Registrants should contact the county office or site location they wish to attend. Fees can be paid the day of the workshop. Registration for each event includes publications, copies of presentations and lunch. Additional workshops will be scheduled across Iowa after harvest is complete, and through winter.



First Elevators Certify U.S. Soy Under SSAP-RED Program

By 2020, EU Member States are required to fulfill at least 20 percent of their total energy needs with renewable sources, with at least 10 percent attributed directly to transport fuels. This presents a new biofuels market opportunity for U.S. farmers, who are ready to deliver certified, sustainably-grown soybeans that will positively impact EU air quality.

The SSAP-RED (Soy Sustainability Assurance Protocol-Renewable Energy Directive) is a voluntary program developed by the U.S. Soybean Export Council (USSEC), with support from the United Soybean Board (USB). This program meets the specific requirements of the European Union's Renewable Energy Directive (RED) and sources SSAP-RED-verified soybeans as feedstock for the production of biodiesel.

"This program, which helps the EU reach its targets for renewable fuel, recognizes U.S. soy's commitment in responding to customers in the U.S. and abroad," said Jim Sutter, CEO of USSEC. "The U.S. soy advantage of sustainability, quality and reliability sets American farmers apart, and SSAP-RED brings conservation of land and resources to the forefront."

With the intent to support local farmers and elevators, Bunge is the first to implement this initiative. Additional exporters are expected to participate in the program, which provides the U.S. soybean value chain with new market opportunities in the European Union. As the second largest market for U.S. soybean exports, the U.S. shipped 260 million bushels of soybeans to the EU so far this year -- an increase of 125 million bushels compared to last year. Expanding markets for U.S. soy remains a priority for USB investment and support.

"Bunge is always looking for new markets for our growers' products and is proud to be first to export U.S. soy that meets the requirements of SSAP-RED," said Andres Martín, Bunge senior vice president of agribusiness and oilseed value chain, North America. "We're committed to enhancing the sustainability of the entire production chain, and biofuel produced from U.S. soybeans provides a clean-burning diesel replacement that improves the environment."

Farmers in Illinois, among several other states across the U.S., can participate in the SSAP-RED voluntary program. Farmers who are interested must deliver their soybeans to a certified elevator and sign a "Self-Declaration" that attests to their compliance with the requirements of the RED as well as the application of Good Agricultural Practices. Sustainability requirements of the RED restrict cultivation of biofuels feedstock from land that has been converted, since 2008, from any of three protected land categories: grasslands, forest and wetlands, including peatlands. It also has requirements on auditing and compliance, including independent third-party review.

"As the first farmer to complete an on-farm assessment for SSAP-RED, I see tremendous potential in U.S. farmers participating in this program to provide renewable biofuels to the EU," said Bubba Simmons, USB director and farmer from Leland, Miss. "Sustainability is the foundation for all soybean farmers, and biodiesel is a prime example of our commitment to cleaner alternatives for the environment globally."

The U.S. traditionally exports whole soybeans to Europe. When the soybeans are processed, nearly 80 percent of the bean is made into soybean meal, which is used for livestock feed. The remaining amount is soybean oil, which is used in food service, food manufacturing, or industrial uses such as biofuels/energy. Soybean oil from SSAP-RED verified soybeans, used as feedstock for the production of biodiesel, will help the EU reach their targets for renewable fuel under the Renewable Energy Directive.



USGC Summer Meeting Highlights Global Market Trends Facing Farmers

Set amid a backdrop of record-breaking weather-related delays, narrow margins and continued geopolitical uncertainty, the U.S. Grains Council (USGC) opened its summer annual meeting Monday in Cincinnati by examining major short-term and long-term market trends for U.S. feed grains and the future of the organization’s market development work.

The 59th Annual Board of Delegates Meeting began on an expectant note with USGC Chairman Jim Stitzlein formally introducing USGC President and CEO Ryan LeGrand to the organization’s membership. LeGrand - who came to his new role in June from leading the Council’s Mexico office - expressed his measured enthusiasm about the Council’s role in finding new and more robust markets for U.S. grains with a $20 million allocation from the Agricultural Trade Promotion (ATP) program.

“We clearly have challenging days ahead of us, but we also have a number of bright spots that make it an equally exciting time to be an advocate for trade of U.S. corn, sorghum, barley, DDGS and ethanol,” LeGrand said.

“We’ve had to learn to be nimble as markets change and grow, and we will need to meet this challenge continually as markets we work with will change even faster in the future. And that’s what I envision the Council doing with the help of our staff around the world, our valued members, our friends and allies at the U.S. Department of Agriculture’s Foreign Agricultural Service and the U.S. Trade Representative’s Office.”

Ron Dulin, a consultant from Euromonitor International, and Ken Smithmier, director of market research for agricultural markets at ClipperData, gave keynotes overviewing trends in the marketplace of today and population growth that will drive future markets.

Dulin spoke on Euromonitor’s research into “megacities,” which will dominate economic growth and grain demands over the next 10 years. He explained that the vast majority of megacities are in the developing world, including in China and India, and that future food and energy demand will be driven in these areas of high population seeing rapidly increasing food consumption and need for better air quality.

Smithmier shared his firm’s research about global grain flows and how weather and intervening market forces will cause short-term and long-term effects with respect to agricultural products, namely grains and ethanol. Smithmier reviewed the seasonal and cyclical fluctuations of the global grain market as well as factors that could impact U.S. competitiveness including ongoing trade policy negotiations, changing fuel standards for ocean-going ships and infrastructure development in South America.

In the afternoon, attendees spent time in one or more of seven Advisory Team (A-Team) meetings. Each A-Team has a specific focus - including Asia, Ethanol, Innovation and Sustainability, Middle East/Africa, Trade Policy, Value-Added and Western Hemisphere – allowing members the chance to offer input and set priorities to determine the Council’s course of action over the coming year.

On Tuesday, Council programming is scheduled to focus on emerging markets for U.S. grains and ethanol, with the Cincinnati meetings culminating on Wednesday with the Council’s Board of Delegates meeting, appointment of A-Team leaders and election of a new board of directors.



RFA Extends Ethanol Invite as EPA Head Visits Oil Refinery

The Renewable Fuels Association has invited U.S. Environmental Protection Agency Administrator Andrew Wheeler to visit an ethanol plant as a follow-up to his tour of a Pennsylvania oil refinery. Wheeler was scheduled to visit Monroe Energy’s plant in Trainer, Penn., today at the invitation of Sen. Pat Toomey (R-PA), who just last week filed legislation in Congress to gut the Renewable Fuel Standard.

“Administrator Wheeler will certainly get an earful of myths and misinformation about the RFS, RINs, and small refinery exemptions during his visit to the Monroe Energy crude oil refinery,” said RFA President and CEO Geoff Cooper. “Therefore, we felt it was necessary to give the Administrator an opportunity to hear the other side of the story, and we hope he balances his visit to Monroe with a tour of an RFA member ethanol plant and discussion with plant workers and local farmers.”

The Monroe facility, owned by Delta Air Lines, refines 185,000 barrels of crude oil per day. At this size, the facility does not meet the statutory definition of a “small refinery” and thus may not petition EPA for a “disproportionate economic hardship” exemption from the Renewable Fuel Standard. In 2015, Monroe notched record operating income when RIN prices were three times higher than current levels. And earlier this month, parent company Delta announced record revenue of $12.5 billion in its second quarter.

“During your visit, you likely will hear the refiners’ perspective on the Renewable Fuel Standard, and they will no doubt encourage you to continue EPA’s unprecedented use of small refinery exemptions,” Cooper wrote in his invitation letter. “Even though Monroe Energy is not a ‘small refinery,’ Delta officials will certainly argue that the company has benefited from the waivers because they resulted in a significant collapse in RIN prices. Of course, your agency’s own analysis has concluded that the financial health of refineries is not affected by RIN prices, stating that, ‘…obligated parties, including small entities, are generally recovering the cost of acquiring the credits necessary for compliance with the RFS standards through higher sales prices of the petroleum products they sell.’”

Cooper is hopeful that Wheeler will come and learn more about the challenges the ethanol industry is facing. While Wheeler was briefly at Southwest Iowa Renewable Energy (SIRE) in June as President Trump made an appearance there to celebrate completion of the year-round E15 rule, he was not able to tour the facility with President Trump, Cooper, and SIRE CEO Mike Jerke.

“I know you are a fair-minded individual who is looking for the right answers to the policy questions surrounding ethanol and the RFS,” he wrote. “I also believe you would benefit greatly from hearing from ethanol plant workers and farmers about the impacts of your agency’s decisions on the RFS.”



Zoetis Establishes Research Lab at Colorado State University to Explore Immunotherapies for Livestock

Zoetis, the world's leading animal health company, has signed an agreement with Colorado State University (CSU) to establish a research lab at CSU that will explore the livestock immune system and target new immunotherapies – paving the way for new alternatives to antibiotics in food-producing animals. The new 3,000-square-foot Zoetis Incubator Research Lab will operate at the Research Innovation Center on CSU's Foothills Campus starting in early 2020.

In this landmark R&D collaboration, Zoetis scientists will be co-located with CSU’s highly skilled scientists, core laboratories, research programs and services to seed innovations for livestock animal health. While the Zoetis Incubator Research Lab will reside within CSU’s Research Innovation Center, it will be part of the company’s global R&D organization. As a result, Zoetis may access a greater understanding of the livestock immune system, generating new candidates for further research and development. The initial focus of the Incubator Research Lab will be biotherapeutics for cattle, which could yield broader implications for pigs and poultry.

"Our agreement with Zoetis represents the beginning of an era of collaboration, cooperation and innovation between public and private research leaders, all in the interest of improving animal health," said Ray Goodrich, executive director of the Infectious Disease Research Center and a professor in the Department of Microbiology, Immunology and Pathology at CSU.

With few alternatives today for treating life-threatening bacterial infections in animals, Zoetis supports the responsible use of antibiotic medicines in animals and in people, while ensuring that veterinarians and livestock producers have new and enhanced solutions to better predict, prevent, detect and treat disease in the animals under their care. These include new classes of antibiotics for veterinary use only and novel, non-antibiotic anti-infective treatments like those being pursued through the Zoetis Incubator Research Lab.

Going where the science is
As part of the new lab, Zoetis expects to hire up to 20 livestock research scientists, immunologists and cell biologists in Fort Collins beginning this fall.

"Zoetis is committed to continuous innovation and going where the science is. CSU is at the forefront of infectious disease innovation and animal health research in a vibrant biotech community, making it the ideal environment for our Incubator Research Lab," said Chad Ray, senior director of Global Therapeutics Research for Zoetis.

For CSU, Goodrich added that the strategic new lab will provide multiple benefits for the campus community and the city of Fort Collins. It also bolsters CSU's land-grant mission, which includes setting the standard for public research universities in teaching, research, service and extension for the benefit of the citizens of Colorado, the United States and the world.

"The success of our efforts will have the potential to translate into products and services that may greatly improve the health and well-being of farm animals and our agricultural communities," he said.

About the CSU Research Innovation Center
The Research Innovation Center at CSU is a life-science company accelerator and is home to several startup companies with roots at the university, including SiVEC Biotechnologies LLC, which is developing antiviral applications for the rapid treatment and prevention of avian influenza. The center was originally designed to foster collaborations between private industry and CSU’s academic community. Learn more about the Research Innovation Center at https://www.research.colostate.edu/idrc/research-innovation-center/. 



European Commission grants grain import approval for Syngenta Agrisure Duracade corn trait

Syngenta today announced it has received import approval for the Agrisure Duracade® trait (event 5307) from the European Commission.

The trait features a unique mode of action that controls corn rootworm (CRW) differently than other traits on the market.

“This trait approval is an important milestone demonstrating our commitment to bring new, innovative technologies to help growers protect and maximize their yield,” said David Hollinrake, president of Syngenta Seeds. “The Agrisure Duracade trait gives a new trait rotational option for CRW management for a healthier corn crop and higher yield potential. The 2020 Agrisure Duracade launch class carried a 4.1 bushel per acre advantage over our non-Agrisure Duracade containing products.”

The approval covers corn grain and its derived products for food and feed use within the countries of the European Union (EU).

Agrisure Duracade hybrids are sold as stacked traits (Agrisure Duracade 5222 E-Z Refuge® and Agrisure Duracade 5122 E-Z Refuge®) and all of the individual components of these stacks are now approved.  For more information about Agrisure Duracade trait stacks, growers should ask their local seed provider or visit http://www.biotradestatus.com/.

Agrisure Duracade was approved by USDA to plant in the U.S. in 2013. Hybrids containing the Agrisure Duracade trait have been sold and planted in the U.S. since 2014, subject to grain marketing requirements.