Thursday February 6 Ag News

2020 Nebraska dairy ambassadors selected

The Nebraska Dairy Ambassador program has appointed six new student ambassadors for 2020.

This year’s group of ambassadors include:
    Abigail Langdon, an agriculture business and financing major at the University of Nebraska-Lincoln from Clarkson, Neb.
    Lindsey Marotz, an elementary education major at the University of Nebraska-Lincoln from Hoskins, Neb.
    Morgan Marotz, an elementary education major with minors in coaching and special education at Wayne State College from Wahoo, Neb.
    Jaycie Meggison, an agriculture business and financing major at the University of Nebraska-Lincoln from Blair, Neb.
    Erin Muntz, an University of Nebraska-Lincoln animal science major from Louisville, Neb.  This is Erin’s second year serving as a dairy ambassador.
    Daniel Serdar, an animal science major at the University of Nebraska-Lincoln from Woodstock, Ill.

Each year, up to six ambassadors with an interest in dairy production are selected to improve their leadership and communication skills while advocating for the dairy industry.  Ambassadors engage in conversations with consumers, school-age children and their peers.  Many of the conversations involve learning more about the dairy industry and practices used within the industry.  While serving as an ambassador, students have the opportunity to network with dairy industry partners, visit dairy farms, and tour agribusinesses in Nebraska.

“We have a great group of ambassadors again this year,” said Kim Clark, Extension Dairy Educator and ambassador coordinator.  “Each ambassador brings a different skill set and knowledge level to the program.  It is always a pleasure to watch each ambassador grow and gain skills they will be able to use indefinitely.”

Sponsored by Midwest Dairy, the dairy ambassador program was piloted in 2016 in Nebraska with four ambassadors.  Since its inception, 21 Nebraska college students have completed the yearlong program, which is open to any college student in Nebraska.

Since then, Midwest Dairy adopted the program for other states and currently has ambassador programs for college students in Minnesota, North Dakota, South Dakota, Iowa, Kansas, Missouri, and Illinois.



Livestock master matrix adopted in 89 Iowa counties

In January, 89 of Iowa’s 99 counties notified DNR that they plan to evaluate construction permit applications and proposed animal confinement locations by using the master matrix.

With few exceptions, most counties will use the matrix during the next 12 months. The following counties will not use the matrix in 2020: Davis, Des Moines, Keokuk, Lee, Mahaska, Osceola, Plymouth, Wapello, Warren and Washington.

Animal confinement producers who need a construction permit before building in counties which use the matrix must meet additional requirements. Producers qualify by choosing a site and using practices that reduce impacts on air, water and the community.

Counties that adopt the master matrix can provide more input to producers on site selection, and proposed structures and facility management. Participating counties score each master matrix submitted in their county and can recommend that DNR approve or deny the construction permit. They can also join in DNR visits to a proposed confinement site.

While all counties may submit comments to DNR during the permitting process, counties that adopt the master matrix can also appeal a preliminary permit to the state Environmental Protection Commission.

The deadline for enrolling in the program is Jan. 31 of each year.

Find more information, including a map of participating counties by searching for Master Matrix at www.iowadnr.gov/afo or directly on the master matrix web page.

The master matrix applies to producers who must get a construction permit to build, expand or modify a totally roofed facility. Generally, these are confinement feeding operations with at least 2,500 finishing hogs, 1,000 beef cattle or 715 mature dairy cows.



U.S. Pork Exports Record-Large in 2019, Approaching $7 Billion; Beef Export Value Again Tops $8 Billion

U.S. pork exports posted new volume and value records in 2019, reaching nearly $7 billion, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Exports of U.S. beef were below the previous year's record levels, while lamb export volume was the second largest on record.

Pork exports soared to 282,145 metric tons (mt) in December, up 34% year-over-year and surpassing the previous high (set in November 2019) by 9%. Export value was $760 million, up a remarkable 44% from a year ago and breaking the previous record (also from November 2019) by 7%. These results pushed 2019 exports 10% above the previous year in volume (2.67 million mt) and 9% higher in value ($6.95 billion), breaking previous records for both volume (2.45 million mt in 2017) and value ($6.65 billion in 2014).

Pork export value per head slaughtered was $66.70 in December, nearly one-third higher than a year ago and the highest monthly average since 2014. For 2019, per-head value averaged $53.51, up 4% year-over-year. The percentage of pork production exported also set new records in December, as exports accounted for 32.1% of total pork production and 29.3% for muscle cuts only, up substantially from a year ago (26.1% and 23.6%, respectively). In 2019, exports accounted for 26.9% of total pork production, up from 25.7% and the highest since 2012. For muscle cuts only, the ratio was 23.6%, up from 22.5% in 2018.

December beef exports totaled 111,315 mt, down 1% from a year ago, valued at $682 million (down 3%). 2019 exports totaled 1.32 million mt, 2.5% below the previous year's record volume. After increasing by more than $1 billion in 2018, beef export value eased by 3% to $8.1 billion.

Beef export value per head of fed slaughter was $321.21 in December, down 9% from a year ago. The 2019 average was $309.75, down 4%. December exports accounted for 14.3% of total beef production and 11.6% for muscle cuts only, down from 15.5% and 12.6%, respectively, a year ago. 2019 exports accounted for 14.1% of total beef production and 11.4% for muscle cuts, down from the previous year's record-high percentages (14.6% and 12.1%, respectively).

December pork demand surges in China/Hong Kong; exports to Mexico rebound
Following a record performance in November, China/Hong Kong's demand for U.S. pork climbed even higher in December at 110,876 mt - more than quadruple the year-ago volume - while value was nearly six times higher at $274.9 million. For 2019, pork exports to China/Hong Kong were up 89% to 665,665 mt, valued at $1.45 billion (up 71%). China/Hong Kong's pork imports from all suppliers in 2019 reached a record 3.45 million mt, up 40% year-over-year, and accelerated into December after China's hog prices peaked in November.

"Despite retaliatory duties and the other barriers U.S. pork faces in China, exports to the China/Hong Kong region closed 2019 with tremendous momentum," said Dan Halstrom, USMEF President and CEO. "We look forward to continued success in 2020, especially if U.S.-China trade relations continue to trend in a positive direction. The coronavirus situation is certainly concerning and disruptive, but it hasn't dampened our enthusiasm for the potential this market holds for U.S. red meat."

Pork exports to Mexico also closed 2019 on a high note as December volume reached 66,181 mt, up 10% from a year ago, and export value surged 46% to $137.6 million, the highest in two years. Saddled by Mexico's retaliatory duties for the first five months of the year, 2019 exports to Mexico were down 9% from a year ago in volume at 708,133 mt, but recovered to finish just 2% lower in value at $1.28 billion.

December pork exports to leading value market Japan trailed the previous year by 3% in volume at 29,323 mt, but value increased 3% to $121.6 million. Full-year exports to Japan were down 6% from a year ago in both volume (369,891 mt) and value ($1.52 billion). Much of this decline was ground seasoned pork, which fell by $86 million due to a wide tariff rate disadvantage compared to European and Canadian product. Beginning Jan. 1, Japan's tariff rates on U.S. pork and pork products were lowered to match those imposed on major competitors, with the rate for U.S. ground seasoned pork falling from 20 to 13.3%.

Other 2019 highlights for U.S. pork exports include:
    Led by substantial growth in Chile and Peru and an increase in shipments to mainstay market Colombia, exports to South America set new records in both volume (152,125 mt, up 12% year-over-year) and value ($382.3 million, up 16%).
    Strong growth in Panama, Guatemala, Honduras and Costa Rica drove pork exports to Central America to new record highs in volume (98,182 mt, up 14% from a year ago) and value ($239.5 million, up 19%).
    In Oceania, a key destination for U.S. hams and other muscle cuts used for further processing, strong demand in both Australia and New Zealand pushed exports 31% above the previous year in volume (116,113 mt) and 34% higher in value ($339.2 million), setting new records.
    Exports to Canada increased 4% from a year ago in volume (214,703 mt, the largest since 2013) and were 5% higher in value ($801.7 million, the highest since 2014).
    Exports to South Korea slowed from the 2018 records, with volume down 14% to 207,650 mt and value falling 12% to $593 million. But U.S. share of Korea's imports increased modestly to 36%, as overall import volume also declined from 2018.

New beef export records for Korea and Taiwan; strong year for beef variety meat
The decline in U.S. beef exports from the record levels of 2018 was partially attributable to lower shipments to Japan, which were down 6% in both volume (311,146 mt) and value ($1.95 billion). Similar to pork, Japan's tariff rates for U.S. beef were lowered on Jan. 1 to match those of major competitors, with rate for U.S. beef muscle cuts dropping from 38.5 to 26.6%. Another tariff rate cut will come April 1, when the Japanese fiscal year begins. December exports to Japan were slightly above year-ago levels in both volume (24,056 mt) and value ($144.6 million).

"It was gratifying to see beef exports to Japan perform so well in December, given that the first tariff rate cut was pending and set to take effect Jan. 1," Halstrom observed. "Buyers in Japan have been waiting a very long time for tariff relief and have already responded enthusiastically. We look forward to solid growth in 2020 and beyond."

South Korea made a strong push to become the leading value market for U.S. beef in 2019, finishing a close second to Japan at a record $1.84 billion (up 5% from a year ago). Korea was also the second largest volume market for U.S. beef at 255,758 mt (up 7%, also a new record). The United States captured a larger share of Korea's chilled beef imports in 2019 at 62%, up from 58% the previous year. U.S. beef accounted for 51.5% of Korea's total beef and beef variety meat imports and more than one-third of Korea's total beef consumption.

"U.S. beef is achieving remarkable success in Korea's traditional retail and foodservice sectors and is well-positioned to capitalize on growth in e-commerce, the institutional sector and other emerging sales channels," Halstrom said. "As U.S. beef moves steadily toward duty-free status in Korea, it becomes accessible and affordable for a wider range of customers whose appetite for U.S. beef continues to grow. We are seeing many new menu concepts in this dynamic market and continued excitement about U.S. beef."

Beef exports to Taiwan were record-large for the fourth consecutive year in 2019, climbing 6% from a year ago in volume (63,538 mt) and 3% in value ($567.1 million). This growth is also driven by success at foodservice and retail as Taiwan continues to embrace alternative cuts and U.S. beef is underpinning overall consumption growth. The United States dominates Taiwan's chilled beef market, capturing approximately 75% of its chilled imports - the highest share of any Asian destination.

Other 2019 highlights for U.S. beef exports include:
    In Mexico, the third largest market for U.S. beef behind Japan and Korea, export value increased 5% from a year ago to $1.1 billion despite a 1% decline in volume (236,707 mt). This was largely due to strong demand for beef variety meat, especially tripe. Variety meat exports to Mexico increased 4% year-over-year in volume (100,645 mt) and surged 21% in value to $276.9 million. This included $111.7 million in tripe exports, up 30% from a year ago.
    The largest decline in U.S. beef exports in 2019 was to China/Hong Kong (103,220 mt, down 21%, with value down 19% to $830 million). Retaliatory duties and other restrictions limited U.S. exports to China, but the Phase One trade agreement includes significant breakthroughs in market access that should allow a much larger share of U.S. beef production to be eligible for China. Although China's beef demand has recently slowed, its overall beef imports reached a staggering $8.4 billion in 2019, a 70% increase over the 2018 record.
    Led by strong demand in Indonesia, beef exports to the ASEAN region increased 23% from a year ago in volume (60,790 mt) and were 8% higher in value ($295.5 million). Exports to Indonesia reached record heights, climbing 67% from a year ago in volume (23,591 mt) and 37% higher in value ($85.1 million). This included a near doubling of variety meat volume (to 12,688 mt) along with substantial growth in muscle cuts.
    Despite a slowdown in December, exports to the Dominican Republic easily surpassed the previous year's record in both volume (8,034 mt, up 18%) and value ($65.8 million, up 13%).
    Fueled by outstanding demand in Panama, exports to Central America increased 3% from a year ago in volume (15,156 mt) and 7% in value ($86 million). Exports to Panama surged 33% to 2,278 mt valued at $14.7 million (up 30%).
    Mexico was one of several markets driving strong demand for U.S. beef variety meat in 2019. Global variety exports increased 4% from a year ago in volume (322,529 mt) and 9% in value ($972.9 million). Exports to Japan, which largely consist of tongues and skirts, totaled 62,948 mt, up 19% from a year ago, valued at $387 million (up 13%). Prospects for further growth are very strong in Japan, with beef from cattle of all ages now eligible and lower tariff rates under the U.S.-Japan trade agreement (Japan's tariff rate for U.S. tongues will phase to zero by 2028 and for other variety meat by 2030). Egypt, the largest destination for U.S. beef livers, saw a 3% increase in variety meat volume (63,449 mt) while export value climbed 15% to $73.7 million. Beef variety meat exports also posted substantial year-over-year gains in Indonesia, the Dominican Republic, Chile, Angola, Gabon, Trinidad and Tobago, Mozambique and Nicaragua.

Lamb export volume largest since 2011
December exports of U.S. lamb were 1,225 mt, up 9% from a year ago, while value jumped 24% to $2.36 million. For 2019, lamb export volume increased 22% from a year ago to 15,732 mt, valued at $26.1 million (up 12%). Led by strong demand in Mexico, export volume was the second highest on record behind 2011 and export value was the highest since 2014. In addition to Mexico, strong growth markets included Trinidad and Tobago, Panama, Guatemala and the Philippines.



Strong Demand, Leverage Shift Adds Optimism for Year Ahead

Beef demand is strong and with U.S. cattle numbers plateauing, prices are likely to be stronger in the year ahead as consumers at home and abroad support industry profitability. That was the message delivered today during the popular CattleFax outlook session, held as part of the 2020 Cattle Industry Convention in San Antonio, Texas.

Weather is expected to play a supporting role for agriculture during the year ahead, according to Dr. Art Douglas, professor emeritus at Creighton University. He said that following repeated El Niño events during the past five years, the U.S. will shift to a La Niña pattern, which will shift much of the nation outside of the northwest and southeastern portions of the country toward conditions slightly warmer and drier than last year, which will be favorable for planting and growing conditions during the spring and summer.

CattleFax Vice President of Research and Risk Management Services Mike Murphy predicted that corn and soybean acres will increase during the year ahead, with corn plantings rising 4 million acres to 94 million acres and soybean acreage rising 7 million acres to reach 83 million acres. He predicted 2020 spot corn prices to trade in a range of $3.50 to $4.00 per bushel, down 15-20 cents per bushel from 2019, unless weather issues become a significant factor. He noted, however, that trade could present an upside to the projected prices, particularly in light of the recently signed U.S./China trade agreement.

Trade also will play a significant role in beef and cattle markets, according to CattleFax Vice President of Industry Relations and Analysis Kevin Good, who said he expects higher total animal protein production to be offset by strong demand and increasing exports. During the year ahead, Good said record-large U.S. beef production will reach 27.7 billion pounds. However, he projected that increases in beef exports and decreases in beef imports will result in per-capita beef supplies of 58.4 pounds, an increase of just 0.4 pounds over 2019 levels.

“With strong demand for U.S. beef at home and rising demand overseas, the modest increases in supply will be more than offset by a growing consumer appetite for our product,” said Good, who projected all-fresh retail prices will rise to reach an average of $5.87 per pound during the year ahead, an increase of 5 cents per pound over 2019. “Higher wholesale beef values are a reflection of improving domestic and global beef demand,” Good noted, pointing out that CattleFax projects composite cutout prices will rise $3 during the year ahead to reach $222 per hundredweight.

Growing demand and increasing beef prices at the consumer level will be supportive of cattle prices, with leverage beginning to shift away from the packing sector as more shackle space becomes available during the year ahead. Good said CattleFax projects fed steer prices to average $120 per hundredweight during 2020, an increase of $3 from the previous year. Through the year, he noted downside risk to the $108 level, with resistance at the top near the $130 level. Calf prices are also expected to move higher in the year ahead, with 550-lb. steer prices trading in a range of $155 to $180, averaging $170, up $6 per hundredweight from 2019 levels. Feeder prices will also rise, with 750-lb. steers trading from $140 to $160, with a yearly average of $150, also $6 per hundredweight higher than last year’s average.

Good noted that additional supplies of utility cows, the product of several years of aggressive expansion, are likely to challenge the cull cow market. “However, increased demand for lean trim and a decline in the availability of imported grass-fed trim from Australia and New Zealand will be supportive of cow prices,” he said. He projected utility cow prices should range from the low $70 level to a fall low near $55, while averaging near $65 per hundredweight for the year, an increase of $5 per hundredweight over 2019 levels.

CattleFax CEO Randy Blach closed the session highlighting the strong demand that is highly favorable to the entire industry. He noted that there is significant outside interest in U.S. protein production, which is also highly supportive and a positive sign for the future.

“The days of boom and bust in our industry are behind us,” said Blach. “Thanks to strong demand at home and abroad, we’re likely to see far less volatility in the market during 2020 than we saw last year.”

Blach noted that global demand for all proteins is strong, with beef being a major beneficiary of that demand.

“Rising demand has meant more dollars flowing into the industry, which adds to the profitability of all segments of our business,” said Blach, who noted that although the leverage has been largely held by the packing sector, that too would begin to shift during the year ahead, with more dollars flowing back into the live cattle segments.

“That investment should begin to incentivize increases in shackle space during the years ahead,” Blach said. “In turn, as supplies begin to flatten out, packing margins have likely peaked and we’ll begin to see margins at the packing sector begin to narrow as we move through 2020.”

However, Blach pointed out that although the market outlook is positive during the year ahead, the U.S. beef industry needs to be vigilant and maintain a competitive posture.
“There is strong demand for our product, but that’s the result of the fact that our business has paid attention to market signals and we’ve been producing a consistent, quality product that has gained a greater piece of that retail dollar. We need to protect that,” said Blach. “Cattle must continue to be better over time. We must pay attention to what the consumer is telling us. That means conversations about topics like traceability and sustainability only become more important as time goes on. We have to listen to the consumer and respond with action to meet their needs and demands if we’re going to continue to be successful in a hypercompetitive global protein market.”



Perdue Touts Trade Wins At 2020 Cattle Industry Convention and NCBA Trade Show

U.S. Secretary of Agriculture Sonny Perdue addressed a packed crowd of beef producers today at the 2020 Cattle Industry Convention and National Cattlemen’s Beef Association (NCBA) Trade Show. Secretary Perdue participated in the Opening General Session of the event and spoke with NCBA President Jennifer Houston about the state of American beef production. He also highlighted some of the big wins for U.S. Beef in the last year:

"Japan's a big deal, they are a huge consumer and huge lover of our U.S. Beef... What we have done with Japan obviously, is open that market up again in a bilateral relationship," Secretary Perdue said. "We were excited about getting beef back into China... I think we will see that market grow with the Phase One agreement."

"I want to thank Secretary Perdue for speaking at our convention for a second straight year and for being such a strong advocate for our country’s ranchers and farmers, " added NCBA President Jennifer Houston. “We have seen great progress in the beef industry during the Secretary’s tenure and part of that is because we have these important conversations to let him and other policymakers in Washington know what our producers are facing every day on the ground."



RFA Reports Detail Ethanol, Distillers Grains Exports in 2019

The Renewable Fuels Association today released a pair of reports summarizing 2019 U.S. ethanol and distillers grains export and import data. Through a series of charts and graphics, the reports provide industry advocates, policymakers, the media, and general public with the latest information on the important role U.S. ethanol and distillers grains play on the world stage.

The export/import trade summary report on ethanol provides annual and monthly data on U.S. ethanol exports, highlighting the fact that 1.47 billion gallons—9.3 percent of the ethanol produced here—were exported in 2019, second only to 2018’s record of 1.7 billion. This ethanol, valued at $2.42 billion, was shipped to more than 70 countries on six continents. Top destinations for U.S. ethanol exports (Brazil ranking first, followed closely by Canada) are also discussed in the report, along with information on the impact of trade barriers on shipments to certain markets.

When it comes to ethanol imports, the United States continues to import very little fuel ethanol and remained a net exporter by a large margin in 2019. Maps depicting the leading ports of entry and departure for U.S. ethanol imports and exports are also offered, as are figures showing the annual economic value of U.S. ethanol exports.

The second report released today covers U.S. exports of distillers grains, a high-protein co-product of dry mill ethanol production used in feed for livestock and poultry, which totaled 10.79 million metric tons in 2019, the sixth straight year these exports exceeded 10 million metric tons. Mexico remained the top destination for U.S. distillers grains, representing 19 percent; however, U.S. distillers grains exports to China continued to see a significant drop since the country imposed punitive anti-dumping and countervailing duties against U.S. products in 2016. U.S. distillers grains exports had an aggregate value of $2.2 billion in 2019, the fifth highest on record.

Although they moderated slightly in 2019, ethanol exports have experienced rapid growth in recent years, and distillers grains exports have sustained their gains from the last decade, despite the challenges presented by trade barriers.



Apply for Farm Bureau Women’s Communications Boot Camp Summer Session by March 28

The American Farm Bureau Federation will host two sessions of Women’s Communications Boot Camp in 2020 – June 9-12 and Oct. 13-16. The training is open to all female members interested in building skills needed to communicate about agriculture and for Farm Bureau.

Online applications for the summer session (June 9-12) will be accepted through March 28; handwritten and/or scanned submissions will not be accepted. Topics covered during the session will include advocacy, public speaking, communicating with elected officials, social media strategy, targeted messaging and working with the media.

“Engaging with consumers to build their trust in agriculture is more important than ever,” said Sherry Saylor, an Arizona crop farmer and chair of the American Farm Bureau’s Women’s Leadership Committee. “Food remains a hot topic in our society, which presents a tremendous sharing opportunity for farmers and ranchers.”

Applicants will be notified of their status by e-mail on or before April 24. Applicants will have the option to have their application carried over to the fall session application pool (Oct. 13-16) if not selected for the summer session. Selected applicants must remit a $300 registration fee to offset materials, equipment and group meal costs.

For more information and to apply, visit the Women’s Communications Boot Camp page on the AFBF website.

To date, 210 women have graduated from this intensive training. Program alumni are passionate and persuasive advocates for agriculture who connect with influencers on the local, state and national level.



USDA Casts Vision for Scientific Initiatives Through 2025

U.S. Secretary of Agriculture Sonny Perdue today applauded the publication of the USDA Science Blueprint, which will serve as the U.S. Department of Agriculture’s (USDA) vision for and continued commitment to scientific research.

“USDA’s agricultural research is vital to helping our farmers, ranchers, producers, and foresters increase efficiency and productivity, and our science agencies play an integral role in setting forth new visions for innovation through their work,” said Secretary Perdue. “As the Department strives to anticipate and meet the future needs of our customers, the USDA Science Blueprint will serve as a roadmap to guide our scientific collaboration over the next five years across the Department and with our partnering research organizations.”

“USDA has a long history of putting its scientific discoveries and knowledge into practice,” said Dr. Scott Hutchins, who leads USDA’s Research, Education, and Economics (REE) mission area. “By prioritizing our research initiatives around these themes, it will enable us to best conduct critical, long-term, broad-scale science and spur innovation throughout our nation’s agricultural enterprise, natural resource base, and food systems. We are committed to putting science to work for the American public. We will always strive for scientific excellence and integrity in support of America’s agriculture.”

Dr. Hutchins first announced the publication during remarks to the Foundation for Food and Agriculture Research (FFAR) conference yesterday.

Background:
The USDA Science Blueprint provides a foundation for focused leadership and direction in advancing USDA’s scientific mission through 2025. It lays out five overarching themes for research, education, and economics, each with established objectives, strategies, and evidence-building measures. The five Program Themes include:
-    Sustainable Ag Intensification,
-    Ag Climate Adaptation,
-    Food and Nutrition Translation,
-    Value-Added Innovations, and
-    Ag Science Policy Leadership.

The USDA Science Blueprint includes the four REE mission area agencies — the Agricultural Research Service (ARS), the Economic Research Service (ERS), the National Agricultural Statistics Service (NASS), and the National Institute of Food and Agriculture (NIFA) — along with the Office of the Chief Scientist (OCS) and the science arms of the U.S. Forest Service (FS), Food Safety and Inspection Service (FSIS), Natural Resources Conservation Service (NRCS), Food and Nutrition Service (FNS), and the Animal and Plant Health Inspection Service (APHIS).

USDA continues to strengthen strategic coordination of our science portfolio to better inform the Department and the federal government's decisions, policies, and regulations. Together, USDA’s science agencies serve our nation’s farmers, ranchers, foresters, and consumers by delivering timely and relevant scientific innovations and knowledge.



USDA Announces Details of Risk Management Programs for Hemp Producers

The U.S. Department of Agriculture (USDA) today announced the availability of two programs that protect hemp producers’ crops from natural disasters. A pilot hemp insurance program through Multi-Peril Crop Insurance (MPCI) provides coverage against loss of yield because of insurable causes of loss for hemp grown for fiber, grain or Cannabidiol (CBD) oil and the Noninsured Crop Disaster Assistance Program (NAP) coverage protects against losses associated with lower yields, destroyed crops or prevented planting where no permanent federal crop insurance program is available. Producers may apply now, and the deadline to sign up for both programs is March 16, 2020.

“We are pleased to offer these coverages to hemp producers. Hemp offers new economic opportunities for our farmers, and they are anxious for a way to protect their product in the event of a natural disaster,” said Farm Production and Conservation Undersecretary Bill Northey.

Multi-Peril Crop Insurance Pilot Insurance Program
The MPCI pilot insurance is a new crop insurance option for hemp producers in select counties of 21 states for the 2020 crop year. The program is available for eligible producers in certain counties in Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia and Wisconsin. Information on eligible counties is accessible through the USDA Risk Management Agency’s Actuarial Information Browser.

Among other requirements, to be eligible for the pilot program, a hemp producer must have at least one year of history producing the crop and have a contract for the sale of the insured hemp. In addition, the minimum acreage requirement is 5 acres for CBD and 20 acres for grain and fiber. Hemp will not qualify for replant payments or prevented plant payments under MPCI.

This pilot insurance coverage is available to hemp growers in addition to revenue protection for hemp offered under the Whole-Farm Revenue Protection plan of insurance. Also, beginning with the 2021 crop year, hemp will be insurable under the Nursery crop insurance program and the Nursery Value Select pilot crop insurance program. Under both nursery programs, hemp will be insurable if grown in containers and in accordance with federal regulations, any applicable state or tribal laws and terms of the crop insurance policy.

Noninsured Crop Disaster Assistance Program
NAP provides coverage against loss for hemp grown for fiber, grain, seed or CBD for the 2020 crop year where no permanent federal crop insurance program is available.

NAP basic 50/55 coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production. Buy-up coverage is available in some cases. The 2018 Farm Bill allows for buy-up levels of NAP coverage from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Premiums apply for buy-up coverage.

For all coverage levels, the NAP service fee is $325 per crop or $825 per producer per county, not to exceed $1,950 for a producer with farming interests in multiple counties.

Eligibility Requirements
Under a regulation authorized by the 2018 Farm Bill and issued in October 2019, all growers must have a license to grow hemp and must comply with applicable state, tribal or federal regulations or operate under a state or university research pilot, as authorized by the 2014 Farm Bill.

Producers must report hemp acreage to FSA after planting to comply with federal and state law enforcement. The Farm Bill defines hemp as containing 0.3 percent or less tetrahydrocannabinol (THC) on a dry-weight basis. Hemp having THC above the federal statutory compliance level of 0.3 percent is an uninsurable or ineligible cause of loss and will result in the hemp production being ineligible for production history purposes.



Mobilizing Farmers, Ranchers and Scientists as Window of Opportunity Narrows on Climate Change

Farmers, ranchers and scientists are at the center of an unprecedented effort announced today to develop and deploy climate-smart solutions on a global scale.

The Foundation for Food and Agriculture Research (FFAR) and the U.S. Farmers & Ranchers Alliance (USFRA) are establishing an Agriculture-Climate Partnership to unlock the climate-solving potential in farmlands. While agriculture contributes 13 percent of greenhouse gas emissions globally, it also presents an effective solution that can eliminate agriculture’s emissions and offset those of other sectors. Through climate smart agriculture practices, farmers and ranchers can optimize for growing, improve resiliency, minimize fertilizers and other inputs, improve water use and quality, and improve soil, all while storing carbon for future generations.

“The challenge is enormous, but so are the stakes. Climate change is threatening farmers and ranchers’ livelihoods and the global food supply,” said Dr. Sally Rockey, FFAR’s executive director. “While there is much research and data on the climate-agriculture intersection, these efforts are fragmented, which slows progress. This partnership will foster collaboration between farmers, ranchers, scientists and others from across the food and agriculture sectors to address greenhouse gas emissions in a coordinated way, as a united front.”

This partnership envisions a world where every farmer and rancher is employing at least one climate-smart solution on every acre of farmland. The goal is for agriculture to be net negative for greenhouse gas emissions by 2030.

FFAR is bringing the best scientific minds in food and agriculture together to develop and test actionable solutions customized by geography, farm type, crops, livestock and climate. USFRA is then mobilizing its vast network of farmers and ranchers to co-create and deploy climate-smart solutions. The coordination starts in the U.S. and will move internationally, as the World Farmers Organisation (WFO) expands efforts on a global scale.

“No two farms are alike which means the path to climate-smart farming may look a little, or a lot, different from farm to farm,” said Erin Fitzgerald, CEO, USFRA. “The challenge is accelerating the activation of this potential in soils and simultaneously developing tools and technology that can reduce new emissions while adapting to the rapidly shifting weather patterns that farmers and ranchers are facing year over year. And all of this to be economically and environmentally sustainable.”

FFAR and USFRA have already invested $50 million in projects advancing research efforts to reduce GHG emissions from agriculture and are actively seeking matching funds from outside partners to accelerate and expand the program. The full scope of the anticipated effort is estimated at $200 million.

While the full scope of the types of climate-smart practices are part of this partnership, examples include cover crops, no-till and conservation till, variable rate technology, rotational grazing, manure fractionation, and split nitrogen application, among others.

The first five years of this partnership are crucial, for both the sustainability of farms and the potential to build the framework and multiply the reach. Over time, the partnership will lead to the creation of a Climate Smart Activation Platform, providing practical, environmentally and economically sustainable solutions that farmers can utilize to refine and incorporate their climate-smart practices and technology, build resiliency and contribute to agriculture being net negative for greenhouse gas emissions.



AGCO Reports Fourth Quarter Results

AGCO, a worldwide manufacturer and distributor of agricultural equipment and solutions, reported net sales of approximately $2.5 billion for the fourth quarter of 2019, a decrease of approximately 3.0% compared to the fourth quarter of 2018. Reported net loss was $1.17 per share for the fourth quarter of 2019, and adjusted net income(3), excluding non-cash impairment charges, restructuring expenses and a tax gain, was $0.94 per share. These results compare to reported net income of $1.26 per share and adjusted net income, excluding restructuring expenses, debt retirement costs and a U.S. tax reform benefit, of $1.31 per share for the fourth quarter of 2018. Excluding unfavorable currency translation impacts of approximately 2.4%, net sales in the fourth quarter of 2019 decreased approximately 0.6% compared to the fourth quarter of 2018. During the fourth quarter of 2019, AGCO recorded non-cash goodwill and intangible asset impairment charges of approximately $176.6 million, or $2.33 per share, primarily related to the Company’s European grain and protein operations.

Net sales for the full year of 2019 were approximately $9.0 billion, which is a decrease of approximately 3.3% compared to 2018. Excluding unfavorable currency translation impacts of approximately 4.2%, net sales for the full year of 2019 increased approximately 0.8% compared to 2018. For the full year of 2019, reported net income was $1.63 per share, and adjusted net income(3), excluding non-cash impairment charges, restructuring expenses and certain tax charges and gains, was $4.44 per share. These results compare to reported net income of $3.58 per share and adjusted net income, excluding restructuring expenses, debt retirement costs and a U.S. tax reform benefit, of $3.89 per share for 2018.