Thursday October 17 Ag News

October Rural Mainstreet Index Climbs Again: Trade War and Stalled USMCA Batters Economic Confidence

The Creighton University Rural Mainstreet Index (RMI) for October climbed above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.     

Overall: The overall index rose to 51.4 from 50.1 in September. Although still weak, this is the highest reading since June of this year. It also marked the third time in the past four months that the overall index has risen above growth neutral.

“Federal agriculture crop support payments and somewhat higher grain prices have boosted the Rural Mainstreet Index slightly above growth neutral for the month. Even so, almost three of four bank CEOs, or 73%, reported continuing negative impacts from the trade war,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. 

Farming and ranching: The farmland and ranchland-price index for October slumped to a weak 40.3 from September’s 43.1. This is the lowest reading since March of this year and the 71st straight month that the index has remained below growth neutral 50.0. 

The October farm equipment-sales index improved to 39.7 from September’s 35.9. This is the highest reading for the index since June of this year, but marks the 73rd month that the reading has remained below growth neutral 50.0. 

Below are the state reports:
Nebraska: The Nebraska RMI for October rose to 48.5 from September’s 47.6. The state’s farmland-price index increased to 44.6 from last month’s 42.3. Nebraska’s new-hiring index increased to 49.1 from September’s 45.2.  Over the past 12 months rural areas in Nebraska have lost jobs at a rate of minus 1.1% compared to a gain of 1.8% for urban areas of the state.  

Iowa: The October RMI for Iowa increased to 49.6 from September’s 48.7. Iowa’s farmland-price index fell to 39.7 from September’s 47.4. Iowa’s new-hiring index for October declined to 52.1 from 55.5 in October. Over the past 12 months rural areas in Iowa have experienced job additions with a gain of 0.3% compared to a much stronger increase of 1.0% for urban areas of the state.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.  

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



The Pub at the Pinicon has Iowa's 2019 Best Breaded Pork Tenderloin

A northeast Iowa mainstay is where you'll find the 2019 Best Breaded Pork Tenderloin sandwich in Iowa. The Pub at the Pinicon in New Hampton took home the top award in the 17th annual contest sponsored by the Iowa Pork Producers Association.
   
Simply abbreviated as "The P.T." (pork tenderloin), the sandwich starts with a center-cut, half-pound pork loin-the same piece of meat that's used for The Pub's top-selling Boneless Iowa Chop dinner entrée. These loins are injected with their own natural juices to enhance moisture, then hand cut, coated in seasoned flour, dipped in a milk and egg wash, breaded with seasoned panko crumbs and fried.

Current owners Dale and Laura Reicks of New Hampton source all of the restaurant's pork from Reicks View Farms in Lawler, a family farm they founded in 1979. In addition to pork tenderloins and chops, Reicks View Farms supplies The Pub's bacon, ribs and sausage pizza topping.

"Knowing how important the pork industry is in Iowa and knowing how much Iowans love a good breaded pork tenderloin, this is a badge of honor for our restaurant," said Phil Zwanziger, manager at the more than 60-year-old dining and events center. "The best compliment we can receive in our business is that we serve a good, tasty product."

Zwanziger, a native of Nashua, has been involved with the business for almost 30 years, and said the pork tenderloin has long been a popular menu item. Staff has modified the breading over the years, and about a year ago moved to a brioche bun instead of a hoagie.

The breading recipe particularly helped win over chef Phil Carey, who serves on the IPPA Restaurant and Foodservice Committee and helped judge the finalists. "This year's winning tenderloin, by far, had an outstanding breading that was well-seasoned and added great texture to the overall sandwich," Carey said. "The pork itself was very tender and very juicy to the last bite. A great pork tenderloin."

The Pub will receive a check for $500, a plaque and a large banner proclaiming it the winner of the contest.

IPPA judges selected Stumble Inn in Bradford as the runner-up in this year's contest. IPPA will present that restaurant with $250 and a plaque.

Rounding out the top five finalists (in no order) are Big Al's BBQ in Des Moines; Night Hawk Bar & Grill, Slater; and West Side Family Restaurant, Grinnell. These restaurants will each receive a Top Five Plaque to display.

The tenderloin contest recognizes Iowa dining establishments that have pork as a regular menu feature in support of Iowa's nation-leading pork industry. The winner is announced as part of October Pork Month to celebrate the state's dedicated pig farmers, local restaurants and their hardworking teams and a famous Midwest favorite-the pork tenderloin sandwich.



Apply by Nov. 1 to Serve on the National Pork Checkoff Board of Directors

The Pork Checkoff’s board of directors is accepting applications through Nov. 1 to fill five three-year terms. State pork producer associations, farm organizations or individuals who pay the Pork Checkoff, including pig farmers and pork importers, may submit an application.

“Serving on the National Pork Board is a great opportunity for producers to support the pork industry while helping to plan for a successful future,” said Alcester, South Dakota, producer Steve Rommereim, who is the past National Pork Board president and chair of the Nominating Committee. “Not only have I been able to serve producers, I also have learned from so many in our pork industry.”

During the National Pork Industry Forum, Pork Act Delegates must rank a minimum of 10 candidates to send to U.S. Secretary of Agriculture Sonny Perdue for approval. The board consists of 15 members, each serving a maximum of two three-year terms. The Pork Act requires that no fewer than 12 states be represented.

The 15 positions on the Checkoff board are held by pork producers or importers who volunteer their time. Any pork producer or importer who has paid all Checkoff assessments due or is a representative of a producer or company that produces hogs and/or pigs is eligible to serve.

The application deadline is Nov. 1, with interviews for each candidate held in Des Moines, Iowa, Dec. 10 and 11. Please direct questions to Denise Yaske at DYaske@pork.org or apply directly at https://www.pork.org/about/leadership-opportunities/.



American Beef is Climate Change Solution

South Dakota cattle producer Todd Wilkinson today told a U.S. Senate subcommittee that contrary to the claims of some environmental and anti-animal-agriculture activists, "American beef production and consumption is a climate change solution."

"Climate policies that unfairly target cattle producers fail to recognize the positive role of cattle and beef in a healthy, sustainable food system," Wilkinson told members of the U.S. Senate's Environment and Public Works Subcommittee on Clean Air and Nuclear Safety. "Rather than adopting misguided policies that threaten the viability of farmers and ranchers, we want to shift the conversation."

The subcommittee held today's hearing on the issue of "Reducing Emissions While Driving Economic Growth: Industry-Led Initiatives." In his testimony, Wilkinson discussed the environmental benefits of grazing, and busted myths about the effect of methane on global climate.

"(Grazing) naturally sequesters carbon, a benefit compounded by ruminant grazing," Wilkinson explained. "Grazing builds deep root systems in prairie grasses, which improve soil health. Healthy soils retain more water, sequester more carbon, and increase the resiliency of our ranches."

"Methane emissions from cattle are part of the natural methane cycle," Wilkinson continued. "Within 10 years, more than 90 percent of that methane combines with oxygen in the atmosphere and converts to CO2. Methane has no long-term impact on climate when emissions and oxidation are in balance. And this balance has been maintained for centuries."

Wilkinson, who is co-owner and operator of a commercial cow-calf operation and feeing business in De Smet, S.D., also serves as NCBA's 2019 Policy Division Vice Chairman and as Vice President of the South Dakota Cattlemen's Foundation. He closed his testimony by reminding Senators of producers' long commitment to environmental stewardship.

"The U.S. cattle industry is proud of its history as stewards of our nation's natural resources," he said. "Cattle producers are America's original conservationists, and we work hard every day to ensure that we can pass our operations on to the next generation. My family, and the entire American cattle producing community, is committed to remaining environmentally, economically, and socially sustainable for generations to come."



Alfalfa and Potassium: It's Complicated.

Has anyone ever told you to eat a banana when you have a muscle cramp or eye twitch? That's because bananas have potassium. Potassium is an important nutrient for humans, and an even more important nutrient when it comes to alfalfa.

With an economic value of $9 billion annually in the United States, alfalfa is the most valuable crop behind corn and soybeans. Because of its high nutritional content, alfalfa is a common feed source for farm animals like cattle, horses, sheep and goats. So, understanding this relationship between alfalfa and potassium is a worthwhile goal.

"Potassium plays a role in many processes within an alfalfa plant," says Jacob Jungers, a researcher at University of Minnesota. "For example, it's important for converting sunlight to energy, transporting molecules and growing new cells."

However, too much potassium can be a problem. "When alfalfa plants are given more potassium than they need, the concentration of potassium in the tissues increases," says Jungers. "This is called luxury consumption." Our bodies do this too. We store certain vitamins in our fat cells when we consume more than we need.

This increased concentration of potassium affects the nutritional balance of alfalfa as a feed source for livestock. High potassium concentrations are especially concerning if fed to lactating dairy cows. "In addition to being costly for growers, over-fertilization can put dairy cows at risk of milk fever," says Jungers. Milk fever is a metabolic disease cows can get around the time of calving that causes weakness, and sometimes even death. So, Jungers and his team wanted to identify potassium fertilization rates that increase yield and nutritive value, while reducing potassium concentration in the tissue.

Researchers experimented with five different rates of potassium fertilizer on alfalfa fields. Throughout the four-year study, they took measurements of the yield, nutritive value, and potassium concentrations in the plant tissue. Soil samples were also taken to track the potassium levels in the soil.

"Potassium fertilization increased alfalfa yield, but decreased forage quality," says Jungers. "This tradeoff was consistent among all alfalfa cultivars in the study." Intensively harvested alfalfa did differ in overall yield, but it did not differ in its yield response to potassium fertilization.

When applied at recommended levels, potassium fertilization is important for high alfalfa yields. However, potassium fertilization will not prolong alfalfa stand life or productivity beyond the third production year. "Many soil types are abundant in potassium, but relatively little is available to crops at any given time," he says. "The amount of potassium that might someday be available to crops is largely dependent on soil texture, moisture, and other environmental factors." Potassium fertilizer rates for alfalfa should be determined based on expected yield, soil test levels, and if the crop will be fed to cows.

The next steps in this work may be to consider the timing of potassium fertilization. In this study, potassium fertilizer was incorporated in the soil prior to planting the first year. Then, it was applied in the spring the following years. In the Midwest, application of potassium fertilizer is common in the fall or after the first cutting.

Understanding tradeoffs between alfalfa yield and quality is important for fertility management and sustainable production. Measuring and reporting these tradeoffs helps growers make the best decisions for their operations.

Read more about this research in Agronomy Journal. This work was funded by the Minnesota Department of Agriculture Fertilizer Research and Education Council and the Midwest Forage Association.



Weekly Ethanol Production for 10/11/2019

According to EIA data analyzed by the Renewable Fuels Association for the week ending Oct. 11, ethanol production edged up to 971,000 barrels per day (b/d), equivalent to 40.78 million gallons daily, an increase of 8,000 b/d or 0.8% from the prior week. Production was 4.0% below the same week a year ago and 4.7% below the level two years ago. For the first time since April 2017, production has been below 1 million b/d for four consecutive weeks. The four-week average ethanol production rate declined for the seventh straight week, falling 0.8% to 959,000 b/d, equivalent to an annualized rate of 14.70 billion gallons, the lowest average since May 2016.

Ethanol stocks rebounded 4.1% to 22.1 million barrels after declining by a record amount a week earlier. Still, inventories were 8.3% lower than the same week last year. Stocks rose in all regions.

There were zero imports for the third consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of August 2019.)

The volume of gasoline supplied to the U.S. market declined 1.1% to 9.354 million b/d (392.9 million gallons per day, or 143.40 bg annualized). On the other hand, refiner/blender net inputs of ethanol increased by 2.7% to 942,000 b/d, equivalent to 14.44 bg annualized.

Expressed as a percentage of daily gasoline demand, daily ethanol production rose to 10.38%.



New NGFA video showcases link between grain quality and grain handling safety

The National Grain and Feed Association (NGFA) this week unveiled a new safety training video, “Safety and Grain Quality Management,” that illustrates the connection between grain quality and safety.

The animated video, funded by the National Grain and Feed Foundation, was launched during NGFA’s first-ever Harvest Safety Week, which is taking place Oct. 14-18.
Working in or around a grain bin can expose farmers and workers to serious and life-threatening hazards, including entrapment and suffocation from engulfment. Historically, nearly 70 percent of these incidents occur on the farm. The video notes that hot weather and grain whose condition is not maintained and monitored can increase the need for farmers and others to enter bins to dislodge  grain hung up or crusted in a bin.

“Grain that has gone out of condition will always be a safety risk,” the video notes. Viewers will learn several steps to follow when storing grain to maintain quality, including proper aeration, moisture levels and temperature monitoring to avoid potentially hazardous situations.

All videos, “Safety Tips” sheets, webinars and other materials can be found on ngfa.org/safety.

During Harvest Safety Week, NGFA is delivering free safety resources particularly useful during  the busy fall harvest season to NGFA members’ inboxes each day. Participants are encouraged to use this opportunity to exemplify commitment to safety by using NGFA’s training materials and sharing them with #Harvest19 and #HarvestSafetyWeek on social media.



NMPF Statement on Its Letter to President Trump
Randy Mooney, Producer Chairman

“On behalf of dairy farmers and farmer-owned dairy cooperatives across the country, the National Milk Producers Federation wrote to the President today to commend his Administration for its excellent judgment this month in including a number of European dairy products, particularly cheeses from major EU exporters such as Italy, on a list of WTO-authorized retaliatory tariffs related to the successful U.S. case against European Airbus subsidies. However, we must reject European efforts to deceive the United States about the reality of Transatlantic dairy trade. To that end, we respectfully asked the President to put the needs of U.S. dairy farmers above those of Italian and European farmers by maintaining the retaliatory tariff list against Europe, as the Administration proposed earlier this month.

“The U.S. is running a $1.5 billion dairy trade deficit with Europe because of unfair EU trade practices that largely block our access to their market while they enjoy broad access to ours. EU policies such as Italian-initiated bans on American-made parmesan, asiago and gorgonzola mean that they can ship us $1 billion in cheese each year while U.S. cheese exports to the EU clock in at $6 million.

“In light of this disparity and the EU’s refusal to meet its WTO commitments regarding illegal Airbus subsidies, American dairy farmers saw the proposed retaliatory tariff list’s strong focus on EU dairy and cheeses as at least temporarily creating a slightly more level playing field for Made in America products that face even higher barriers to entry in the EU market.

“Dairy farmers are counting on the President to stand with them and resist Italy’s request that he side with the Italian farmers and cheese makers who have blocked our own great cheeses from EU store shelves.”