Wednesday December 4 Ag News

Cuming County FSA, Extension to Host Farm Bill Education Meeting for Area Producers

Nebraska Extension and USDA Farm Service Agency (FSA) in Cuming County will host a Farm Bill education meeting on December 9th at the Nielsen Center in West Point. The meeting will begin at 9:00 a.m. and go through noon. All area producers are invited to attend this free informational event.

FSA County Executive Director Sarah Beck said the meeting is designed to provide important information to producers as they begin to make farm-bill related program decisions. The 2018 Farm Bill, signed into law last December, reauthorized the existing Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) safety net programs that were in the 2014 Farm Bill, however producers will need to make new program enrollment decisions over the coming months.

The ARC and PLC programs under the new farm bill remain similar to the previous farm bill, but there are a few key program changes.

“During the meeting we will discuss these changes in order to assist producers with the decisions they will need to make at sign-up,” Beck said. “Extension will be providing guidance on the usage of online tools to aid in the decision-making process.”

Extension and Nebraska FSA are hosting producer Farm Bill education meetings across the state. More information on these meetings can be found at fsa.usda.gov/ne or farmbill.unl.edu. The meetings are scheduled from late November to mid-December in advance of the coming ARC/PLC enrollment deadlines in 2020. Advance registration is encouraged for planning purposes for materials and facilities. Attendees can register for any of the meetings at the farmbill.unl.edu site or by calling or visiting their county FSA or Extension office. All times are local with registration beginning 30 minutes ahead of start.

The educational programs are each set to run three hours in length, featuring information and insight from FSA staff and Extension experts.

There also are resources available online that can educate producers in their ARC/PLC decision-making process. Links to these resources are available from FSA at www.fsa.usda.gov/ne under the Spotlights section or from Extension at farmbill.unl.edu.



Nebraska Beef Council December Zoom meeting

The Nebraska Beef Council Board of Directors will have a conference call at the NBC office in Kearney located at 1319 Central Ave. on Tuesday, December 17th, 2019 beginning at 10:00 a.m. CST. The NBC Board of Directors will review evaluations for FY-2018-2019 authorizations request.  For more information, please contact Pam Esslinger at pam@nebeef.org. 



Japan Trade Agreement “A Big Win” for Nebraska Farmers and Ranchers

Today, Governor Pete Ricketts issued a statement following news that Japan’s National Diet had approved a new trade agreement with the United States.  The agreement was negotiated earlier this year by President Donald J. Trump and Japan’s Prime Minister Shinzō Abe.

“Thank you to our friends in Japan for swiftly approving this new trade agreement,” said Gov. Ricketts.  “President Trump’s deal with Japan is a big win for Nebraska farmers and ranchers and for Japanese consumers.  It reduces Japan’s tariffs on beef, pork, corn, and other Nebraska-grown crops, which will help expand what is already Nebraska’s top market for ag exports.   Breaking down these barriers will grow the longstanding friendship between our two countries and give our Japanese customers even greater access to our high quality food.”

NEBRASKA AND JAPAN’S TRADE RELATIONSHIP
In 2018, Nebraska exported more than $1.1 billion of agricultural products to Japan.  Last year, Japan bought more Nebraska beef, pork, wheat, and eggs than any other country.  Japan is also the second-largest export market for Nebraska corn.  Here is the total dollar value of Nebraska’s top three ag exports to Japan.
·       Beef: $412.1 million (29% of all Nebraska beef exports)
·       Corn: $333.9 million (22% of all Nebraska corn exports)
·       Pork: $262.7 million (56% of all Nebraska pork exports)

Japan is also the leading international investor in Nebraska.  Kawasaki and other Japanese companies support around 9,400 jobs across the state.

BACKGROUND ON THE U.S.-JAPAN TRADE AGREEMENT
Background provided by the Office of the U.S. Trade Representative in September:
·       The United States and Japan have reached an agreement in which Japan will eliminate or lower tariffs for certain U.S. agricultural products.  For other agricultural goods, Japan will provide preferential U.S.-specific quotas.   

·       Once this agreement is implemented, over 90 percent of U.S. food and agricultural products imported into Japan will either be duty free or receive preferential tariff access.  For example, under the agreement, Japan will:
o  Reduce tariffs on products such as fresh and frozen beef and pork.
o  Provide a country-specific quota for wheat and wheat products.
o  Reduce the mark-up on imported U.S. wheat and barley.
o  Immediately eliminate tariffs for almonds, walnuts, blueberries, cranberries, sweet corn, grain sorghum, broccoli, and more.
o  Provide staged tariff elimination for products such as cheeses, processed pork, poultry, beef offal, ethanol, wine, frozen potatoes, oranges, fresh cherries, egg products, and tomato paste.

·       This agreement provides for the limited use of safeguards by Japan for surges in imports of beef, pork, whey, oranges, and racehorses, which will be phased out over time.

·       When the agreement is implemented by Japan, American farmers and ranchers will have the same advantage as CP-TPP countries selling into the Japanese market.

·       The United States will provide tariff elimination or reduction on 42 tariff lines for agricultural imports from Japan valued at $40 million in 2018, including products such as certain perennial plants and cut flowers, persimmons, green tea, chewing gum, and soy sauce.

·       The United States will also reduce or eliminate tariffs on certain industrial goods from Japan such as certain machine tools, fasteners, steam turbines, bicycles, bicycle parts, and musical instruments.

The trade agreement between the U.S. and Japan is scheduled to take effect on January 1, 2020.



Sasse Statement on Japan Trade Deal

U.S. Senator Ben Sasse, a strong advocate for Nebraska agriculture and increased trade, released the following statement after Japan ratified recently signed trade agreements with the United States.

“This Japan deal is a big win in a big market. We’re going to sell grade-A, corn-fed, Nebraska beef to our allies. China is trying to consolidate its power in the Pacific and strong trading relationships like this are an important way to push back against the commies.”



Statement by Steve Nelson, President, Regarding Japan Passage of Trade Deal with U.S.

“Japan’s passage of the new limited trade agreement with the U.S. is a big deal for Nebraska farm and ranch families. As the nation’s leading exporter of beef, and Japan being our largest customer, Nebraska stands to make significant gains from the agreement. This deal will put tariff reductions on Nebraska beef on par with our international competitors. According to Nebraska Farm Bureau estimates based on USDA data, Nebraska exported more than $253 million of beef to Japan in 2017. The reduction of tariffs from nearly 40 percent down to 9 percent when the agreement is fully implemented, will likely cause that number to grow. This agreement is also about more than beef. Japan is a leading importer of Nebraska corn, pork, wheat, poultry, ethanol, and dairy products; all of which will see a significant or complete reduction in tariffs under the new agreement. Between 2015-2017, Nebraska exported roughly $550 million in agricultural products per year to Japan. Given our experience with tariff reductions, we fully expect that dollar amount to increase.”

“We thank President Trump and his trade team for their work to get this agreement across the finish line. We also thank Nebraska’s Congressional Delegation for providing the necessary push to the administration, which helped us get to this point. However, while we can celebrate this win, a lot more work must be done to reduce the uncertainty of our international trade situation. Today, we renew our call to Congress to pass President Trump’s US – Mexico – Canada Agreement (USMCA). With the agreement sitting on Congress’ To-Do list for more than a year, we urge Speaker Pelosi to bring the agreement up for a vote before the end of 2019. Lastly, President Trump must also work to finalize an agreement with China. Nebraska farmers and ranchers have patiently waited while the administration has worked to right the many wrongs that exist with the U.S./China trade relationship. While we know not everything will be solved overnight, we hope a proposed multi-phased approach starting with agriculture will be finalized before the end of the year.”



U.S. Grains Council Applauds Japan Agreement Approval
Ryan LeGrand, president and chief executive officer of the U.S. Grains Council

"The U.S. Grains Council is pleased to hear the United States and Japan have made their trade agreement official, after the Japanese Diet ratified it earlier in the day and it is expected to go into effect on January 1, 2020.

"The agreement solidifies trade with our second largest corn market, immediately reduces U.S. corn and sorghum imports for all purposes to a zero-tariff level, reduces the U.S. barley mark up and includes a staged tariff reduction for U.S. ethanol and U.S. corn, barley and sorghum flour. In addition, U.S. feed and food corn, corn gluten feed, and DDGS will continue to receive duty-free market access.

"Japan purchased more than $2 billion of U.S. corn in the most recent marketing year, is an important market for food and feed barley as well as sorghum and promises to be an important future market for U.S. ethanol.

"In negotiating and approving this agreement, our countries have built on a long-standing relationship of mutual trust and embodied that sentiment for the foreseeable future. We look forward to continued work with our Japanese partners on a more comprehensive trade package that will address important non-tariff barriers and what we hope is continued improvement in the ethanol sector."



USMEF Statement on Approval of U.S.-Japan Trade Agreement

Today the Upper House of the Japanese Parliament approved the U.S.-Japan trade agreement, which will greatly improve access for U.S. red meat in Japan. Key provisions of the agreement, which was approved by Japan's Lower House on Nov. 19, were released in October by the Office of the U.S. Trade Representative (USTR).

U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom issued this statement:
With the U.S.-Japan trade agreement now approved by the Japanese Parliament, the U.S. beef and pork industries look forward to expanded opportunities in Japan, which is already the largest value destination for U.S. pork and beef exports (combined export value in 2018 was $3.7 billion). This agreement is one of the biggest developments in the history of red meat trade, as no international market delivers greater benefits to U.S. farmers and ranchers, and to the entire U.S. supply chain, than Japan.

USMEF thanks President Trump, USTR and USDA for prioritizing and securing this agreement, which is a major breakthrough for U.S. agriculture. We also extend our appreciation to Prime Minister Shinzo Abe and his administration for taking unprecedented steps to expand market access for U.S. red meat. In addition to the benefits provided to the U.S. industry, Japanese consumers will now enjoy more affordable access to a wider range of U.S. products.

USMEF's projected impact on U.S. beef and pork exports to Japan:
With tariff rates mirroring those imposed on major competitors, USMEF's forecast for 2020 is for U.S. beef and pork exports to Japan to reach $2.3 billion and $1.7 billion, respectively. Export volumes are projected to be roughly 360,000 metric tons for beef and 410,000 metric tons for pork. Volume and value projections are based on reduced tariff rates being in place for the full year.

USMEF projects that by 2025, U.S. red meat exports to Japan will approach $5 billion - roughly $2.8 billion for U.S. beef and more than $2 billion for U.S. pork - as consumption of U.S. red meat increases due to greater access for Japanese consumers and the U.S. gaining market share. The agreement also opens new opportunities for value-added and processed red meat products, with tariffs on these products phasing to zero, which contributes to the overall growth in U.S. exports to the high-value Japanese market.



Cattlemen Celebrate Finalization of Trade Deal With Japan

National Cattlemen’s Beef Association (NCBA) President Jennifer Houston today issued the following statement in response to Japan's final approval of a trade deal that will lower tariffs for U.S. beef exports to that nation:

"There's just no other way to say it: this is a tremendous victory and a great day for America's beef producers and Japanese consumers. Japan is the number one export market for U.S. beef, and for many years it has been a top priority of NCBA to remove tariff and non-tariff trade barriers that have prevented American beef producers from meeting Japanese consumer demand for safe and high-quality U.S. beef. This agreement levels the playing field and opens the door for U.S. beef producers to meet consumer demand in Japan. NCBA has been a strong supporter of President Trump’s push for a bilateral trade deal with Japan, and we look forward to capitalizing on this opportunity in 2020.

"Over the past few years, NCBA has met countless times with our nation's top trade negotiators and Japanese trade officials to underscore the importance of market access to Japan to America's cattle producers. NCBA is honored to have been a part of the process from Day One right on through to the official signing ceremony with President Trump in the White House. Because of the Administration's commitment to this issue, America's cattle producers will no longer be at a competitive disadvantage in our largest export market. That means our current market of $2 billion a year -- nearly $100 per head sold -- is likely to grow in the years to come."



U.S.-Japan Trade Agreement Ratified
   
The Japanese Diet, the country’s legislative body, earlier today ratified the U.S.-Japan Trade Agreement. The agreement secures the second largest export market for corn farmers and is expected to go into effect on January 1, 2020. This agreement formalizes and builds on our long-standing trading relationship with Japan

Japan is the number two buyer of U.S. corn, purchasing more than $2 billion in the most recent marketing year. The agreement reduces U.S. corn and sorghum imports for all purposes to a zero-level tariff and includes a staged tariff reduction for U.S. ethanol and corn. U.S. feed and food corn, corn gluten feed and DDGS will continue to receive duty-free market access.

NCGA President Kevin Ross in October joined leaders of other farm and commodity groups at the White House to commemorate the signing of the U.S.-Japan Trade Agreement.



A Welcome Win for Farmers

Both houses of Japan’s Parliament have now approved a trade deal with the United States which will go into effect on Jan. 1, 2020. The following statement may be attributed to American Farm Bureau Federation President Zippy Duvall:

“Now that the final hurdle to a deal with Japan has been cleared, American farmers and ranchers can count on increased market access for their products – from beef and poultry to fruits, vegetables and nuts.

This is a big win for farmers, and we hope it’s the first of many trade deals to be approved that will open markets and level playing fields for American agricultural exports. We thank the administration for its commitment to negotiating new trade deals and look forward to more progress soon.

It’s time for Congress to act now to bring USMCA across the finish line. Farm Bureau is calling on members of Congress to take action this week and come together to get something very positive done for agriculture and our whole economy.”



Reynolds' Executive Order Supports Biofuels Industry

Governor Kim Reynolds signed Executive Order 5 (EO5) requiring all new contracts for the purchase of state vehicles with diesel engines to have written support from the manufacturer to use B20 biodiesel (a blend of 20% biodiesel and 80% petroleum-based diesel) or more. Gov Reynolds signed the executive order at the Iowa Farm Bureau's Annual Meeting in Des Moines.

"Biodiesel is a growing and vital industry in Iowa, and I will always work tirelessly for the continued expansion of the biofuels market," said Gov. Reynolds. "Ethanol and biodiesel remain essential to the health of the agricultural economy, sustainable environmental commitments and employ thousands of Iowans. I am proud to stand alongside Iowa Farm Bureau and key stakeholders in the renewable fuels industry to secure the continued demand for biofuels."

The Iowa Department of Transportation (DOT) began using biodiesel blends as far back as 1994. The fleet uses B20 most of the year in virtually everything with a diesel engine, including snow plows, motor graders and more. Today's executive order furthers the governor's longstanding commitment to Iowa's biofuels industry, environmental sustainability, and value-added agriculture.

Iowa's biodiesel industry supports the equivalent of 4,700 full-time jobs and accounts for $568 million of Iowa's gross domestic product. Iowa's eleven biodiesel plants, which produced 365 million gallons in 2018, proved a commitment to growth by increasing their biodiesel production capacity by 20% to nearly 400 million gallons by the end of 2018.



Lower Fertilizer Prices Still the Trend

Retail fertilizer prices continue mostly lower, according to retailers tracked by DTN for the fourth week of November 2019.
Of eight major fertilizers, 10-34-0 is the only one to move higher this month. (DTN chart)

Seven of the eight major fertilizers were lower in price from a month earlier, although once again none were noticeably lower. DAP had an average price of $456/ton, MAP $465/ton, potash $381/ton, urea $386/ton, anhydrous $497/ton, UAN28 $245/ton and UAN32 $277/ton.

The remaining fertilizer was slightly higher than last month. 10-34-0 had an average price of $472/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.42/lb.N, anhydrous $0.30/lb.N, UAN28 $0.44/lb.N and UAN32 $0.43/lb.N.

Retail fertilizers are mixed in price from a year ago. MAP is now 12% less expensive, DAP is 9% lower, urea is 6% less expensive, anhydrous is 4% lower, UAN32 is 3% less expensive and UAN28 is 1% lower from last year at this time. In addition, both potash and 10-34-0 are 3% more expensive compared to last year.



Weekly Ethanol Production for 11/29/2019

According to EIA data analyzed by the Renewable Fuels Association for the week ending Nov. 29, ethanol production ticked 1,000 barrels per day (b/d) higher, or 0.1%, to 1.060 million b/d—equivalent to 44.52 million gallons daily and the tenth consecutive week of expanded output. The four-week average ethanol production rate rose by 1.2% to 1.046 million b/d, equivalent to an annualized rate of 16.04 billion gallons.

Ethanol stocks climbed 1.8% to 20.6 million barrels after three weeks of declines. However, inventories were 10.4% lower than the same week last year. Stocks increased in all PADDs except the Rocky Mountain region (PADD 4).

Imports of ethanol arriving into the West Coast were 11,000 b/d, or 3.23 million gallons for the week. This was the third straight week that ethanol was imported into the U.S. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of September 2019.)

The volume of gasoline supplied to the U.S. market moved 1.9% lower to 9.032 million b/d (379.3 million gallons per day, or 138.46 bg annualized). Refiner/blender net inputs of ethanol narrowed 3.0% to 902,000 b/d—equivalent to 13.83 bg annualized and a 39-week low.

Expressed as a percentage of daily gasoline demand, daily ethanol production increased to 11.74%.



Report from Growth Energy Debunks Unsupported Claims Regarding Endangered Species

Growth Energy, the nation’s largest association of biofuel producers, released a new report demonstrating how claims on the Renewable Fuel Standard’s (RFS) alleged impact on endangered species “relies on unsupported assumptions and speculation.” The report was authored by Ramboll, a global research and management firm specializing in sustainable development, at the request of Growth Energy. It responds directly to unsubstantiated claims regarding habitats of species protected by the Endangered Species Act (ESA) made in a recent D.C. Circuit Court case (American Fuel & Petrochemical Manufacturers v. EPA, No. 17-1258).

“Public, private, and academic science all show that affordable, low-carbon biofuels are beneficial to our health and our climate,” said Growth Energy CEO Emily Skor. “Every passing year yields new innovations in agriculture, allowing us to displace more fossil fuels and create higher yields, all without expanding our environmental footprint. We will not let that progress be held back by unsupported claims about the impact of the RFS on endangered species.”

The newest report serves as an addition to a related Ramboll report released in September, which found that the EPA could “incentivize greater production and consumption of conventional corn ethanol in U.S. transportation fuel without discernible adverse environmental impacts.”

In the newest report, Ramboll researchers illustrate how biofuel critics rely on false assumptions in an attempt to link biofuel production to factors impacting endangered species. Specifically, the authors note that the “alleged impacts are poorly researched and the examples used to support many assertions instead actually refute the assertions.”

“In the absence of a causal link between the RFS and land use change―and in particular land conversion from grassland, wetland, or forest to corn and soy―there can be no causal link between the RFS and impacts to terrestrial species due to loss or degradation of habitat,” write Ramboll authors.

The report also debunks specific claims related to specific species, like the Arkansas shiner and Whooping Crane.

“Acres planted in corn across the United States has remained close to or below the total acres planted in the early 1930s despite increases in demand for corn as human food, animal feed, and biofuels over this nearly 90-year period. The increase in demand has largely been met by an approximately 7-fold increase in yield (bushels per acre). The lack of causal relationship between demand for corn and acres planted in corn calls into question the causal relationship between increased demand for corn for ethanol and land conversion, and, in turn, potential impacts of land conversion on endangered species,” added Ramboll authors.



Cooperatives Working Together Settlement Lifts Legal Cloud

The National Milk Producers Federation today announced it has reached a settlement agreement to end a class-action lawsuit concerning a herd retirement program that ended in 2010 and was administered through NMPF’s Cooperatives Working Together initiative. The settlement will safeguard ongoing efforts to aid U.S. dairy producers, lift a years-long legal cloud and allow NMPF member cooperatives and the current CWT program to move forward with greater legal and fiscal certainty.

The plaintiffs (generally larger retailers and companies who directly purchased butter and cheese from CWT member cooperatives) in First Impressions Salon, Inc. v. National Milk Producers Federation et al, (pending in the U.S. District Court for the Southern District of Illinois), and defendant NMPF have agreed to a settlement of $220 million in exchange for a release from all claims. Based on antitrust rules that mandate a tripling of any damages, that amount is less than 6 percent of the damages sought by plaintiffs. The settlement amount will be paid through existing CWT mechanisms, ensuring no disruption to other business operations.

Neither NMPF nor any of its member cooperatives admit any wrongdoing as a result of this settlement. NMPF is the sole defendant to be a party to the settlement, but the settlement extinguishes claims against all the defendants.

“There is no way to sugarcoat a settlement of this size, especially given that the Herd Retirement Program was a well-publicized effort designed to serve dairy producers in difficult times and was praised by two Secretaries of Agriculture as well as leading members of Congress,” said Jim Mulhern, president and CEO of NMPF, the nation’s largest organization representing dairy farmers. “Given the potential damages and the uncertainties surrounding any jury trial, resolving this case eliminates the possibility of a truly crippling outcome. Lifting this cloud will aid us in our work advancing the well-being of U.S. dairy producers, which includes the current robust CWT export assistance program.”

The plaintiffs’ litigation sought damages relating to the so-called Herd Retirement Program operated under Cooperatives Working Together. The program offered dairy farmers financial incentives to market their milking herds for beef. It operated between 2003 to 2010 and was openly lauded by USDA secretaries and congressional agriculture committee chairmen from both parties at the time as an important, appropriate way to help struggling dairy farmers.

NMPF’s decision to enter into this settlement recognized the uncertainties inherent in any jury trial, the very large damages sought by the plaintiffs and the fact that the successful Export Assistance Program is entirely unaffected by the settlement. In 2018, CWT assistance aided 57 percent of American-type cheese exports, 44 percent of butter exports, and 39 percent of whole-milk powder shipments, helping U.S. dairy producers expand trade relationships in an extremely challenging world trade environment.



New Seed Company Focused On High-Performance Food & Feed Grade Soybeans

Benson Hill, a crop improvement company dedicated to unlocking the natural diversity of plants, today announced the launch of Benson Hill Seeds, a business focused on delivering superior seeds to meet the evolving needs of the growing human food and animal feed markets, including the eMerge Genetics portfolio of non-GMO soybean varieties.

"Benson Hill's crop design platform uses the most advanced traditional breeding and gene editing techniques to improve crop performance, nutrition profiles, and taste and texture characteristics," said Matt Crisp, CEO and co-founder of Benson Hill. "As consumers demand greater focus on health and sustainability in food production, Benson Hill Seeds will deliver an expanded portfolio of soybean varieties with unique attributes that position growers to leverage those booming markets."

Global animal- and plant-based protein demand is projected to double, and consumers are seeking more plant-based food choices and greater sustainability in animal production than ever before. These shifts create unprecedented opportunities for soybeans with greater nutrient density, feed efficiency and other component quality attributes.

Benson Hill Seeds delivers a portfolio of cutting-edge seed varieties including superior protein and oil composition, improved feed digestibility, low trypsin inhibitor and other qualities sought by niche and high-volume end users, while also maintaining farmer yields. One of these offerings is the eMerge Genetics portfolio of products, an internationally known portfolio of non-GMO soybean varieties qualified to meet non-GMO Verified certification and sale in all markets, including the EU.

"Benson Hill Seeds will continue to deliver the non-GMO eMerge portfolio as well as new offerings explicitly designed to benefit both farmers and the consumers," said Jeff Johnson, President of Benson Hill Seeds. "Our focus is to expand the product choices and facilitated transparency that growers and distributors are requesting to fully leverage these new market opportunities."

The Benson Hill Seeds team will debut the new brand and business next week at a key industry conference, the American Seed Trade Association (ASTA) conference.

"In the two decades that I have been breeding soybeans for both nutritional quality and yield optimization, I've never been more excited about the opportunities on the horizon," said Bill Rhodes, soybean breeder, Benson Hill. "We're looking forward to meeting with seed companies and growers in Chicago next week to talk about some of the exciting things we can do for their business."