Tuesday February 18 Ag News

VIDEO RESOURCES AVAILABLE FOR FARM BILL PROGRAM ENROLLMENT

The University of Nebraska–Lincoln’s Department of Agricultural Economics has published video resources on farm bill details and decisions for producers as the March 15 deadline for new program enrollment approaches.

In late 2019 and early 2020, Nebraska Extension and the U.S. Department of Agriculture Farm Service Agency in Nebraska collaborated to reach thousands of agricultural professionals at more than 30 farm bill education meetings across the state. The two presentations are available in their entirety, and as short segments organized by topic, at https://go.unl.edu/farmbillvideo.

The presentations are led by Brad Lubben, extension policy specialist and associate professor of agricultural economics, and Cathy Anderson, chief specialist of production and compliance programs with the USDA Farm Service Agency in Nebraska.

The 2018 farm bill reauthorized the existing Agriculture Risk Coverage and Price Loss Coverage safety net programs that were in the 2014 farm bill. However, producers will need to make new program enrollment decisions with their local Farm Service Agency office by March 15.

“The decision between these programs is substantially different than it was during signup under the last farm bill in 2014,” Lubben said. “Changing market price levels and expectations affect relative protection levels in each of the programs and may affect producer decisions.”

More resources to assist producers in their decision-making are available at http://farmbill.unl.edu.



Grower input to be sought at Mar. 2 soybean gall midge meeting

Growers who dealt with soybean gall midge infestations in 2018 or 2019 and those who are interested in learning more about this newly emerging soybean pest are invited to attend a roundtable discussion on Monday, March 2. The Nebraska Extension program will be from 9:30 a.m. to 3 p.m. at the University of Nebraska Eastern Nebraska Research and Extension Center at 1071 County Road G, Ithaca.

This roundtable session will provide growers with the opportunity to get the latest research updates on soybean gall midge.

University of Nebraska Crop Protection and Cropping Systems Specialist Justin McMechan said the roundtable will provide opportunities for growers to share their observations from the 2018-2019 growing seasons and get access to the newest tools for making management decisions.

Additionally, growers will have the opportunity to participate in on-farm research opportunities for monitoring adult emergence as well as evaluating chemical and cultural strategies in 2020.

McMechan and other extension educators are interested in talking with growers about changes they may have noticed in regard to soybean gall midge injury or pressure between 2018 and 2019, as well as growers’ thoughts on management (planting date, maturity group, insecticides, adjacent crop, tillage, etc.).

“Grower input is critical to help guide research efforts on this rapidly developing pest of soybean,” said McMechan, who along with other UNL entomologists is conducting research on soybean gall midge at the University of Nebraska’s Eastern Nebraska Research and Extension Center near Mead and across the eastern portion of the state.

Registration is from 9:30-10 a.m. "Soybean Gall Midge: Research Update” will be presented from 10-11 a.m. followed by the roundtable discussion until 1 p.m. An open discussion will conclude the program.

For more information and to register, visit https://enrec.unl.edu/soymidgeroundtable/.  Please RSVP by Thursday, Feb. 27.

For more information, email McMechan at justin.mcmechan@unl.edu or Extension Educator Keith Glewen at kglewen1@unl.edu, or call (402) 624-8030 or (800) 529-8030.



Csukker Elected State Pork President

John Csukker of Columbus, Nebraska was elected as President of the Nebraska Pork Producers Association (NPPA) at their Annual Meeting held on February 12, 2020 at the Embassy Suites in Lincoln, Nebraska. Joining Csukker on NPPA’s leadership team are President-Elect, Shana Beattie of Sumner, Vice President, Jared Lierman of Beemer and newly elected Directors Chad Johnson of Norfolk, Mark Wright of Fremont, Kyle Baade of Plymouth and Ryan Preister of Humphrey, Nebraska. Karen Grant of Meadow Grove will serve as 1st Alternate Director and Jennifer Ruby of Howells will serve 2nd Alternate Director.

Retiring Directors are Duane Miller of Davenport, Ron Browning of Fremont, Kevin Peterson of Osceola and Tim Chancellor of Broken Bow, Nebraska.

Csukker is the Environmental Senior Services Manager for the Great Plains Region for The Maschhoffs. John is responsible for the environmental permitting and compliance for The Maschhoffs company-owned farms as well as independent pork production partners in Nebraska, Missouri, and Wyoming. John traveled to Mexico while participating in the Pork Leadership Institute (PLI), a comprehensive training program conducted jointly by the National Pork Producers Council (NPPC) and the National Pork Board (NPB) designed to develop future leaders for the U.S. pork industry. He has represented Nebraska’s pork producers in Washington, D.C., served as an NPB and NPPC Forum Delegate. He is a member of NPPC’s Environmental Policy Committee and was part of the Governors trade mission to Shanghai and Hong Kong China.
 
First elected to the NPPA Board of Directors in 2015, John said in accepting the NPPA Presidency, “I want to continue the success of this organization and the hard-working individuals we represent. Let me hear your ideas, get your feedback and together we will find out more ways our Association can serve the pork producers of Nebraska better”.



Cultivate Your Future at the 2020 Inaugural Nebraska Hemp Conference and Trade Show

Through a collaborative effort, Nebraska’s agricultural growers and the University of Nebraska-Lincoln researchers are hosting a conference in May to focus on growing the hemp industry in the Midwest. Organizers anticipate that 375 people will attend the 2020 Inaugural Nebraska Hemp Conference and Trade Show, a one-day conference held on Tuesday, May 12, 2020, in Lincoln, Nebraska, at the Innovation Campus, University of Nebraska- Lincoln. Organizers intend to make this an annual event.

The conference will bring together industry experts who will provide proven agronomic practices and insights to help growers make the best decisions for their farms. Several prominent speaker from around the country will be on hand to discuss different types of hemp (CBD/Floral, Fiber and Grain), trends across the US, growing practices, pest and disease control, harvest and post-harvest practices, nutrient management, and will also touch on supply-chain, marketing, legal and banking considerations, and policy news.

In addition to these educational offerings, the conference will be a networking opportunity for growers, local businesses, and area organizations. Organizers hope to support the expansion of supply and demand networks in the region by encouraging inter-business coalitions between event attendees and will help businesses to strategize about finding creative opportunities for outside partnerships.

The conference is sponsored in part by the University of Nebraska-Lincoln, Midwest Hop Producers, LLC, Nebraska Hop Yards, LLC and Midwest Hop Yard Supplies, LLC. Conferenceproceeds will benefit the University of Nebraska-Lincoln Extension in support of Hemp Education.

To learn more or register for this event, visit www.grownebraskahemp.com.



DFA to Buy Dean Foods for $425 Million

Dairy Farmers of America announced Monday that it has agreed to buy Dean Foods, America's largest milk producer, for $425 million. According to CNBC, the dairy co-operative will also assume Dean's liabilities as part of the deal to acquire 44 of the company's facilities, as well as other assets.

Dean filed for Chapter 11 bankruptcy in November as the business struggled to attract consumers who have instead turned to nondairy milk or private-label products. At the time it filed for bankruptcy, Dean had reported a net loss in seven of its last eight quarters.

"We have had a relationship with DFA over the past 20 years, and we are confident in their ability to succeed in the current market and serve our customers with the same commitment to quality and service they have come to expect," Dean Foods CEO Eric Beringause said in a statement.

If approved by the bankruptcy court, the agreement would make the Dairy Farmers of America the stalking horse bidder, meaning that the transaction would be subject to receiving higher or better offers while the company is in bankruptcy. The company is also talking with other buyers interested in plants and assets not included in the deal with the co-op.



IFBF analysis shows improved outlook for corn, soybeans in 2020

After years of a struggling downturned agriculture economy, Iowa corn and soybean growers may find opportunities to secure breakeven, or profit opportunities in 2020, thanks to improved price outlook and expectations for lower production costs, according to an exclusive analysis by the Iowa Farm Bureau Federation (IFBF).

“This analysis is just one point in time and conditions could change, but there does seem to be a ray of sunshine this year. It’s very different from last year, when it was hard to find anything positive for soybeans or corn,” says Sam Funk, IFBF director of ag analytics and senior economist.  “While every farmer has different costs and breakeven points, trends in prices and costs for 2020, in general, appear to be moving in a more positive direction for farmers.”

Funk notes that the potential for positive margins gives farmers a greater opportunity to utilize critical marketing tools, such as crop insurance and forward contracting, to secure a breakeven price, or even generate a profit.

“Right now, people ought to have a good idea of what they have locked in for production costs for next year.  They can use crop insurance price guarantee and try to put together a marketing plan that helps them protect themselves from losses,” Funk said.

The IFBF analysis generated 2020 per acre income projections using the November 2020 futures contract levels in late January for soybeans and the December 2020 contract for corn.  Basis levels, or the difference between future prices and bids from the local elevator, were calculated using figures gathered around the state by the Iowa Department of Agriculture and Land Stewardship (IDALS).  IFBF used cost of production estimates from Iowa State University (ISU) Extension’s annual survey of costs, fixed and variable, for corn and soybeans.

IFBF’s exclusive analysis showed that farmers could break even growing soybeans in 2020 on acres that yielded 62 bushels or better.  A break-even mark is a sharp contrast from the past couple years when soybean prices have felt the pain of the trade tension between the United States and China, traditionally the top export market for U.S. soybeans.

“If we could actually get to breakeven on soybeans, when we’ve been having such a large portion of that crop in storage and weighing down on prices, it sounds pretty good,” said Funk.

For farmers planting corn, the outlook from the analysis looks even better.  On corn acres that grew soybeans in 2019, the analysis showed that expected income would be 36 to 37 cents per bushel above cost, reflecting an opportunity for profit.  For farmers planting corn after corn, costs would still be higher than the expected return, but would be closer to the breakeven mark.

IFBF’s study found that some production costs are moderating, including fertilizer and cash rent, but the larger issue is the overall condition of markets.  The recent signing of trade deals with Mexico and Canada and Japan, as well as the first phase of a new trade deal with China, are putting the market back on more stable footing, according to Funk.

While IFBF’s analysis found welcomed upside potential for corn and soybeans next year, Funk cautioned that many farmers are still digging out from heavy debt loads.  Other farmers along the Missouri River and other parts of the state are still feeling pain from historic flooding and the current financial condition of the ag economy.

“There has been a lot of negative news, and a lot of farmers are still healing from last year,” Funk said.  “However, we are, at least, seeing some bright spots of opportunity from our analysis.”



More Prime, But Less Choice and Select
David P. Anderson, Extension Economist, Texas A&M AgriLife Extension Service

One of the interesting trends in 2019 was the retreat in the number of carcasses grading Choice throughout a large portion of the year. The decline in Choice carcasses, combined with lower weights and fewer steers sent to market resulted in some very tight supplies of Choice beef and a wide Choice-Select spread through much of the last half of the year. Feedlot performance, weather, time on feed, and finished weights can all contribute to variation in grading. Weekly steer and heifer dressed weights are up over 10 pounds compared to last year.

So far this year, quality grading is totaling a little more Prime and a little less Select. Prime grading is up almost half a percentage point while Select is down 0.6 percentage points. The average weekly change in Choice grading is up just 0.2 percentage points.

While the national total numbers don't show much change versus a year ago, regional results show much more significant differences. In the second week of January, 13.9 percent of the carcasses in Nebraska graded Prime compared to 11.8 percent the year before. On average this year Prime carcasses are almost 1 percentage point higher than last year. Choice grading is up almost 1.5 percentage points, hitting 75.4 percent Choice in January. Select grading is down a full 2 percentage points this year. More carcasses are grading Prime and Choice in Kansas, while fewer carcasses are grading Select.

The reverse in true in Texas. Prime grading carcasses are down about 0.8 percentage points, averaging 3.3 percent of carcasses graded. About 64 percent of carcasses have graded Choice this year down from almost 69 percent last year. Select carcasses are up to 30.1 percent from about 25 percent last year.

Even with a little more Prime beef on the market compared to last year, the Prime cutout has averaged $230.39 per cwt compared to $223.81 for the first 5 weeks of last year. The Prime-Branded and Prime-Choice cutout price spreads have averaged $12.74 and $18.50 per cwt, compared to $5.89 and $10.20 last year, respectively.

USDA's next Cattle on Feed report will be published on Friday February 21st. Early pre-report estimates include placements that range from below and year ago to as much as 3 percent above last year. Marketings are expected to be up at least 1 percent, based on higher steer and heifer slaughter, but more fed cattle were imported from Canada in January. Cattle on feed are expected to remain more than 2 percent above a year ago.



NMPF Welcomes Congressional Prod to FDA on Fake Dairy

NMPF commends the 58 members of the House of Representatives who wrote FDA Commissioner Stephen Hahn today, urging the agency to quickly finish and act upon its examination of how to enforce regulations defining what may be labeled a dairy product.

“The deception caused by mislabeling of imitation products is both unfair to our hardworking dairy farmers and problematic for consumers, making it harder for Americans to make educated decisions about what they feed themselves and their families,” wrote the lawmakers in the bipartisan letter, which was led by Reps. Peter Welch (D-VT), Mike Simpson (R-ID), Anthony Brindisi (D-NY), and John Joyce (R-PA).

Citing public health concerns expressed by medical groups including the American Academy of Pediatrics, the American Heart Association, the Academy of Nutrition and Dietetics, and the American Academy of Pediatric Dentistry, the members of Congress said they appreciated that Hahn saw the topic of fake dairy labeling as “a public health and nutrition matter” while calling action on it “long overdue.”

“FDA knows this is a problem, and now is the time to solve it,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “Dr. Hahn has shown his interest in resolving it, public-health professionals have spoken out, and more and more members of Congress are as well. Agency inertia shouldn’t jeopardize public health. We applaud the efforts of lawmakers to prod FDA into action.”

Many letter-signers are also co-sponsoring the DAIRY PRIDE Act, introduced by Representatives Welch and Simpson in the House and Senators Tammy Baldwin (D-WI) and Jim Risch (R-ID) in the Senate. That legislation would designate foods that make an inaccurate claim about milk contents as “misbranded” and subject to enforcement of labeling rules. It would require FDA to issue guidance for nationwide enforcement of mislabeled imitation dairy products within 90 days of its passage and require FDA to report to Congress two years after enactment to hold the agency accountable in its enforcement.

Hahn has voiced his support for “clear, transparent, and understandable labeling for the American people.” Given the agency’s inability to follow up on earlier pledges to act, NMPF supports DAIRY PRIDE’s passage.



USDA Reminds Producers of Feb. 28 Deadline for Conservation Reserve Program General Signup

The U.S. Department of Agriculture (USDA) reminds agricultural producers interested in the Conservation Reserve Program (CRP) 2020 general signup that there is less than two weeks before the enrollment deadline of February 28, 2020. This signup is available to farmers and private landowners who are either enrolling for the first time or re-enrolling for another 10- to 15-year term.

Farmers and ranchers who enroll in CRP receive yearly rental payments for voluntarily establishing long-term, resource-conserving plant species, such as approved grasses or trees (known as “covers”), which can control soil erosion, improve water quality and develop wildlife habitat on marginally productive agricultural lands.

CRP has 22 million acres enrolled, but the 2018 Farm Bill lifted the cap to 27 million acres.

Signed into law in 1985, CRP is one of the largest private-lands conservation programs in the U.S. It was originally intended to primarily control soil erosion and potentially stabilize commodity prices by taking marginal lands out of production. The program has evolved over the years, providing many conservation and economic benefits. Marking its 35th anniversary in 2020, CRP has had many successes, including:
-    Preventing more than 9 billion tons of soil from eroding, enough soil to fill 600 million dump trucks;
-    Reducing nitrogen and phosphorous runoff relative to annually tilled cropland by 95 and 85 percent respectively;
-    Sequestering an annual average of 49 million tons of greenhouse gases, equal to taking 9 million cars off the road;
-    Creating more than 3 million acres of restored wetlands while protecting more than 175,000 stream miles with riparian forest and grass buffers, enough to go around the world 7 times; and
-    Benefiting bees and other pollinators and increased populations of ducks, pheasants, turkey, bobwhite quail, prairie chickens, grasshopper sparrows and many other birds.

The CRP continuous signup is ongoing, which enables producers to enroll for certain practices. FSA plans to open the Soil Health and Income Protection Program, a CRP pilot program, in early 2020, and the 2020 CRP Grasslands signup runs from March 16, 2020 to May 15, 2020.



Perdue Joins Western Hemisphere Ag Ministers for Session at Agricultural Outlook Forum

The U.S. Department of Agriculture (USDA) today announced U.S. Secretary of Agriculture Sonny Perdue will host agricultural leaders from key Western Hemisphere countries at USDA’s 96th Agricultural Outlook Forum February 20-21 in Arlington, Virginia.

Joining Secretary Perdue at a February 21 plenary session, titled “Feeding the World through Innovation,” will be Argentina’s Minister for Livestock, Agriculture, and Fisheries Luis Basterra, Canada’s Minister of Agriculture and Agri-Food Marie-Claude Bibeau, and Mexico’s Secretary of Agriculture and Rural Development Victor Villalobos. They will discuss cooperative approaches to promoting agricultural innovation and global trade as foundations of global food security.

“Last May, agricultural leaders from Argentina, Brazil, Canada, and Mexico joined me on the margins of the G-20 in Niigata, Japan, to affirm our intent to work together to champion global agricultural trade based on sound science. We represent some of the most productive farmers on the planet and have a common responsibility to feed our growing world population. Only by continuing to embrace innovative and transformative technologies are we as a world going to be able to produce enough food, fiber, and fuel for the future,” Secretary Perdue said. “I’m delighted we are able to come together once again to continue building the momentum and furthering our dialogue at this year’s Agricultural Outlook Forum.”

The 2020 Outlook Forum is themed “The Innovation Imperative: Shaping the Future of Agriculture.” The Forum’s plenary panel and several breakout sessions will focus on the central role science and innovation play in driving future growth and addressing challenges facing farmers.

The Forum is USDA’s oldest and largest annual gathering. It brings together more than 1,500 participants from the U.S. and around the world, including producers, processors, policymakers, government officials, and nongovernmental organizations. The Forum’s program includes more than 30 sessions and 100 expert speakers.