Nebraska corn farmers to invest nearly $2.7 billion to plant 10.5 million acres
Nebraska corn farmers will plant 10.5 million acres of corn in 2020 according to the latest Prospective Plantings report released by the U.S. Department of Agriculture (USDA). This is nearly a 4% increase from last year’s total planted corn acres. If these planting estimates hold up, Nebraska corn farmers will invest nearly $2.7 billion dollars into the state’s economy over a two-month period. This amount is a result of inputs, such as seed, fuel and fertilizer, but does not include land costs, labor or equipment. Despite the seemingly high investments now, the full economic impact will be realized over time.
“The total investment Nebraska corn farmers make during the planting season is substantial,” said Kelly Brunkhorst, executive director of the Nebraska Corn Board. “This investment really sets the stage for the entire growing season. However, farmers are concerned this year. They’re experiencing difficult financial times, which is leading to much uncertainty. We’re hopeful the current economic conditions improve and the full economic impact of this year’s planted corn crop is realized.”
Farmers in Nebraska historically begin to plant their corn in mid-April and try to finish by mid-May. However, weather often dictates when farmers can plant. The latest Crop Progress report issued by the USDA (released April 20, 2020), showed Nebraska farmers are 2% completed with corn planting, which is ahead of this time last year (1%), but behind of the five-year average (5%).
Even though the corn industry is an economic booster for Nebraska, farmers face challenges in the months ahead. The National Corn Growers Association (NCGA) recently released a report highlighting revenue declines for corn farmers due to COVID-19. Based on this report and further analysis from the Nebraska Corn Board (NCB), corn prices have declined by 20% in Nebraska as a result of the COVID-19 pandemic. Projections show an average loss of $52 per acre in Nebraska, or nearly $512 million.
“Farming is an unpredictable business, and there’s a lot of risk involved,” said David Bruntz, chairman of NCB and farmer from Friend. “It’s necessary to invest a great deal to produce high-quality, high-yielding crops. However, there are so many unknowns, from weather fluctuations, input prices and global pandemics. Thankfully, farmers are resilient and we keep going no matter what.”
Nationally, farmers are estimated to plant nearly 97 million acres of corn in 2020, which is up 8% from last year. For more crop progress information throughout the year, follow the Nebraska Corn Board on Facebook, Twitter and Instagram.
Ricketts Establishes Detasseling Safety Task Force
This afternoon, at his daily coronavirus briefing, Governor Pete Ricketts discussed guidelines for farmers’ markets, nurseries, and garden centers as they operate during the ongoing public health emergency. Nebraska Department of Agriculture (NDA) Director Steve Wellman joined the Governor at today’s briefing. He talked about safely setting up and shopping at farmers’ markets and garden centers. He also announced the formation of a Detasseling Task Force to ensure the safety of Nebraskans working in fields this summer.
Director Wellman: Farmers’ Markets and Garden Centers
• It’s springtime, which is time for farmers to plant crops and for gardeners to be out in their yards.
• Tomorrow is Arbor Day. I invite Nebraskans to take part in the great tradition—started by J. Sterling Morton—by planting a tree.
• NDA has issued guidelines for nurseries and garden centers during COVID-19: nda.nebraska.gov/COVID-19/GuidanceNurseriesGardenCenters.pdf
o The general physical distancing rules apply to these retailers.
o Nurseries and garden centers should heed state and local directed health measures.
o They should also provide extra space for customers and help to direct foot traffic.
• NDA also has guidance available for farmers’ markets: nda.nebraska.gov/COVID-19/FarmersMarketGuidance.pdf
o Vendors should not hand out samples of food.
o They should also have plentiful sanitizers available for customers.
o Customers should appropriately distance themselves from one another.
o They are also encouraged to wear masks while shopping.
o Customers should touch only what they intend to purchase.
• NDA offers coupons to WIC participants that can be used for purchases at farmers’ markets.
o Call NDA for information on accessing the coupons at 402-471-2341.
• The State is setting up a Detasseling Task Force.
o Detasselers provide a vital service to our agricultural community.
o Around 7,000 Nebraskans detassel each year.
o We want to do everything we can to protect detasselers as they prepare to work in the fields this summer.
o The task force has participation from seed companies and detasseling contractors. We’ll also be bringing growers onto the task force.
• USDA has announced a program to give $16 billion in direct aid to farmers and ranchers.
o The Farm Service Agency will administer the direct aid. Details of the program are still in development.
• USDA has also announced that it will purchase $3 billion of food to assist ag producers and food distributors.
Meat Processing Essential, Farmers, Grocers Thank Governor for Efforts to Keep Meat Processing Moving Forward
Partners at the beginning and end of the food supply chain are thanking Nebraska Governor Pete Ricketts for his work with meat processors to both protect employees and help keep meat processing moving forward in Nebraska.
“This is an extremely difficult time for everyone, but the fact remains that without livestock production and meat processing, there wouldn’t be meat at the grocery store, it wouldn’t’ be available for curbside pickup or delivery from restaurants, nor would you be able to get meat at the fast food drive thru. That is reality,” said Steve Nelson, Nebraska Farm Bureau president. “Our farmers are already being challenged in finding processing for market ready livestock due to slow-downs at in-state processors and plant closures in neighboring states. Widespread closure of processing plants, even for limited periods of time, could be devastating for farmers and consumers alike. We appreciate Gov. Ricketts’ ongoing efforts to work with meat processors to protect employees and to keep meat processing moving forward.
Millions of Americans, including Nebraskans, rely on meat protein. Meat processing is the critical process of harvesting livestock for conversion into the meat that ultimately is available for consumption in the form of fresh meats like hamburger, pork chops, steaks, roasts, chicken breasts, and in other forms, such as frozen and canned meats, and other meat products.
“The process of how food gets from the farm gate to the dinner plate is a delicate one that shouldn’t be taken for granted. The stability of our food supply is dependent on everyone along the supply chain being able to do their part, including the meat processing sector” said Kathy Siefken, executive director of the Nebraska Grocery Industry Association. Whether it is the pepperoni and hamburger on frozen pizzas, or canned chicken and all the different fresh meats behind the counter, when you walk through a grocery store, all those products are the result of meat processing. Farmers are farming, grocery stores are open, it is imperative every step necessary to protect workers is taken to keep meat processors’ doors open. Gov. Ricketts has played a key role in trying to make that happen.”
Gov. Ricketts has worked with meat processors throughout the COVID-19 crisis, recently sharing insights as to his efforts with meat processors and representatives of meat processing employees focused on protecting employees and curbing the spread of COVID-19 in meat processing facilities.
Fortenberry Votes to Replenish Paycheck Protection Program
Congressman Jeff Fortenberry (NE-01) offered the following statement today after voting to replenish funds for the Paycheck Protection Program (PPP), help rural hospitals, and expand coronavirus testing.
“The Paycheck Protection Program has been a bipartisan airlift, a lifesaver for people who make things with their own two hands and take care of others under their employ,” Fortenberry said.
“As a matter of policy, it was clear from the beginning that we could run out of funds for the PPP and other disaster loan measures. We’ve reached that point. Today, I wholeheartedly supported legislation to replenish this programmatic bright spot in the trauma we have all faced,” Fortenberry added.
Bacon Votes Yes on Fourth Round of COVID-19 Legislation
Congressman Don Bacon (NE-02) and his House colleagues today passed a fourth round of pandemic response legislation, that builds on the CARES Act. This legislation delivers major wins for Nebraska and accomplishes three of his top priorities. Not only does this legislation infuse $310 billion into the Payment Protection Program (PPP), it has additional funding for Community and Rural Health Centers as well as testing, and $60 billion for the Small Business Administration’s (SBA) economic injury disaster loans and grants.
“With 26 million people unemployed, this package provides the much-needed relief for our Nebraska families and businesses as we work together to fight the virus and sustain our economy that was rapidly growing prior to this pandemic,” said Rep. Bacon. “For nearly two weeks, many small businesses have been waiting for the PPP to be funded after it was frozen.”
In addition to the $310 billion in increased funding to SBA’s PPP that will support small businesses and families, the bill also expands SBA’s Economic Injury Disaster Loan (EIDL) eligibility to include agriculture producers. Families will also benefit from the $75 billion for reimbursements to hospitals to support the need for COVID-19 related expenses and lost revenue, enabling our medical system to better serve the community.
“I was also pleased to see that $825 million has been set aside for our community health centers who serve our rural areas and those with lower incomes,” said Rep. Bacon. “OneWorld and Charles Drew Community Health Centers in Omaha are just two examples of the impact CHC’s make in our community.”
“While I am pleased to see that these areas will be addressed, I am disappointed that my concerns about a lack of reasonable support to state, county and municipal governments was not considered,” said Rep. Bacon. “I have engaged with Congressional leaders and the administration about the need to develop workable options for our local governments to continue providing essential services such as fire and police protection.”
Rep. Bacon has been working with the League of Municipalities and local mayors to bring these concerns to the forefront.
“My staff is working to get legislation drafted to fix this problem and I hope to introduce it soon,” said Rep. Bacon. “Our municipalities are losing revenue sources and we need to help them just like we have helped small businesses, farmers and healthcare systems. This is an all-out strategy to defend not only our health, but our economy so that our country will survive.”
“In future legislation, I will work to guarantee funds are distributed to cities at no additional cost,” said Rep. Bacon. “This is money that has already been appropriated but redirected to keep our first responders and firefighters from being laid off, the very people who protect our communities. I would also like to see funding included for more non-profits because they also are fighting the pandemic head-on to protect Nebraskans by providing vital services to our communities, citizens and businesses.”
Smith Supports President Trump’s PPP, Votes for Key Funding in COVID-19 Fight
Congressman Adrian Smith released the following statement after voting to pass the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) today. H.R. 266 replenishes funding for the Paycheck Protection Program (PPP), provides additional monetary assistance for health care providers and hospitals, and expands testing for COVID-19. PPP was created by the CARES Act to keep workers on payroll at businesses and nonprofits with fewer than 500 employees which have been impacted by social distancing guidelines.
“Community banks across Nebraska’s Third District have been working hard to help their neighbors access over $3 billion from the Paycheck Protection Program already. Small businesses are the lifeblood of rural America and PPP has been critical in keeping them afloat during this pandemic. I appreciate the President’s leadership in supporting hardworking Americans in this difficult time so we can get our economy to back on track after this crisis has passed.”
President Trump is expected to sign H.R. 266 later today.
ADM to Reduce Ethanol Grind in Response to Market Conditions
Due to the challenging operating environment, ADM is currently managing ethanol production throughout its U.S. corn processing network to focus on cash flows and to divert corn grind to other products that are in higher demand, such as alcohol for hand sanitizer.
As part of this process, ADM is temporarily idling ethanol production at the company’s corn dry mill facilities in Cedar Rapids, Iowa, and Columbus, Nebraska. ADM notified approximately 90 employees in each facility today that they will be furloughed in the coming weeks. During the furlough, employees will continue to receive medical benefits and will be eligible to apply for state and federal unemployment benefits. They will also have the option to apply for other open positions at ADM. The anticipated length of the furlough is currently four months, but the timeframe is dependent on market conditions and could change.
ADM has also reduced the ethanol grind at its corn wet mill plants and rebalanced grind to produce more industrial alcohol for the sanitizer market and industrial starches for the containerboard market to better align production with current demand.
“These are very difficult decisions in a very challenging time, and unfortunately, the current market conditions and the low consumer demand for gasoline at this time have greatly impacted the entire ethanol industry,” said Chris Cuddy, president, Carbohydrate Solutions. “Our primary focus is the respect and care of our employees during this time, and we are doing everything we can to support them until market conditions improve and we can look at ways to restart production.”
More Ethanol Plant Closures in Iowa and Nebraska Underscore Calls for Relief
Growth Energy CEO Emily Skor issued a statement following an announcement that two more plants will go offline amid the COVID-19 pandemic:
“This was the third week in a row that ethanol production hit a record-breaking low, even as stockpiles hit a new record-breaking high. The evaporation of fuel demand due to COVID-19 has been a knock-out blow to biofuel plants across the heartland, who were already fighting an uphill battle against trade barriers, regulatory threats, and a flood of foreign oil.
“Half the industry is already offline, and now two ADM plants - one in Iowa and one in Nebraska - have been added to the growing list of plants impacted. Ethanol producers represent the heart of the rural economy, and when they are forced offline, the ripple effect can be felt across the agricultural supply chain – from farmers without a market for their crops to meatpackers and ranchers that rely on local ethanol plants for animal feed and carbon dioxide.
“While a great deal of uncertainty still remains, we will continue to work with our state and congressional champions who are working to secure immediate relief that will keep this highly-skilled workforce intact so we will be ready to bounce back and fuel rural America’s economic recovery. With plans to support the oil and gas industry already underway, it’s vital that policymakers give the same consideration to biofuel workers and farmers equally impacted by disruptions to the motor fuel market.
“We urge policymakers to act swiftly. We have endured downturns before, and we will again, because there is no challenge greater than the resiliency, endurance, and ingenuity of our producers and farm partners.”
Three IANR faculty members complete LEAD21 leadership training
Three faculty members within the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln recently completed LEAD21 leadership training.
Loren Giesler, professor and head of the department of plant pathology; Mary Ann Johnson, professor and chair of the department of nutrition and health sciences; and Doug Zalesky, director of the Eastern Nebraska Research and Extension Center, were among the 90 graduates from across the country who comprised the 15th cohort of the program earlier this year.
LEAD21 aims to enhance the leadership skills of department heads, deans and others in leadership positions at land-grant institutions from throughout the United States. The program also allows participants to meet and share ideas and experiences with peers from wide-ranging programs and institutions nationwide.
At least one faculty member from IANR takes part in the program each year, said Rich Bischoff, IANR associate vice chancellor. The goal, Bischoff said, is to help leaders, particularly those who are relatively new to leadership roles, learn to balance their new responsibilities with their own personal and professional development.
“It’s very easy for a leader, even an experienced one, to manage his or her many tasks without looking to see what’s around the corner,” Bischoff said. “We want our new leaders to be able to create a map that allows them to see what’s 100 miles down the road, instead of just as far as the headlights will take them.”
Giesler, one of the faculty members who graduated from the program this year, said the training has proven invaluable. The training was divided into three parts, Giesler said. The first section focused on the participants as individuals and included assessments of personal strengths, weaknesses, and how each participant deals with change, among other topics. The second focused on leadership of teams, and the third focused on change within large organizations.
Giesler appreciated all components of the training but said the assessments in the first portion were particularly enlightening. “Self-awareness is probably one the greatest outcomes of these kinds of programs,” he said. “If you can manage yourself, you can effectively manage others.”
Giesler has drawn on what he learned from LEAD21 as he leads the plant pathology department through the shift to remote teaching, learning, work and research during the university’s COVID-19 response. “The challenge in leadership is to make sure you reflect back and engage tools that have been presented to you, and that you don’t just react,” he said.
Nebraska Farmers Union PAC Announces Primary Endorsements
NEBFARMPAC, the political action committee of the Nebraska Farmers Union, Nebraska’s second largest general farm organization with over 4,000 farm and ranch families announced its Primary endorsements at this time for the Legislature, State Board of Education, Public Power Districts, Natural Resource Districts, and County Commissioners.
Based on their position on family farm and ranch issues and input from county and district officers, the NEBFARMPAC Board of Directors announced the following Primary endorsements:
Public Service Commission: Crystal Rhoades, Public Service Commission District 2
Nebraska Legislature:
Julie Slama, Nebraska Legislature, LD1
Carol Blood, Nebraska Legislature LD3
Tony Vargas, Nebraska Legislature, LD7
Terrell McKinney, Nebraska Legislature, LD11
Lynne Walz, Nebraska Legislature, LD15
Sheryl Lindau, Nebraska Legislature, LD17
Dan Quick, Nebraska Legislature, LD35
State Board of Education:
Lisa Fricke in District 2
Omaha Public Power District:
Amanda Bogner, OPPD Subdivision 1
Sara Howard, OPPD, Subdivision 2
Lower Platte North NRD, Subdistrict 3: Andrew Tonnies
Lower Platte South NRD, Subdistrict 4: Edison McDonald
Lower Elkhorn NRD, Subdistrict 7: Randy Ruppert
Upper Elkhorn NRD, Subdistrict 6: Art Tanderup
Upper Elkhorn NRD, Subdistrict 7: Keith Heithoff
Lancaster County Commissioner Subdistrict 2: Christa Yoakum,
Gage County Commissioner, District 6: Don Schuller
NEBFARMPAC will make additional endorsements after the Primary Election.
NEBFARMPAC is the political action committee of the Nebraska Farmers Union, which is a non-partisan, not-for-profit general farm organization founded in 1913 with a mission to protect and enhance the quality of life and economic well-being of family farmers and ranchers and their rural communities. NeFU is the respected voice of family farm and ranch agriculture with more than 4,000 family memberships.
CASNR LAUNCHES CHANGE-MAKER SCHOLARSHIP COMPETITION
The College of Agricultural Sciences and Natural Resources at the University of Nebraska–Lincoln has launched a new quick pitch scholarship competition for students who dare to dream big and do the extraordinary to address worldwide issues.
The CASNR Change-Maker Quick Pitch Competition asks current and prospective CASNR students to submit a two-minute video explaining an original, innovative way to address global issues such as food security, sustainability and water use. Two current CASNR students and eight incoming freshmen and transfer students will be awarded full-tuition scholarships for the 2020-21 academic year based on their submitted videos. Winning students will be matched with a mentor to help make their big idea a reality.
Additionally, eight $1,000 CASNR scholarships will be awarded to youth in the sixth through 11th grades.
“We want innovators, change-makers and future leaders to get their start right here in the College of Agricultural Sciences and Natural Resources,” said CASNR Dean Tiffany Heng-Moss. “This competition will reward our current students who strive to tackle these big issues. At the same time, we hope to attract new students who are in search of a college experience in which they will be encouraged and expected to challenge themselves and change the world in the process.”
In Nebraska, one in four jobs is tied to agriculture and natural resources. Within CASNR, students, faculty and staff are already engaged in important work to provide food, fuel, feed and fiber to a rapidly growing world, while conserving agricultural landscapes and natural resources and maintaining quality of life for farmers and ranchers, said Mike Boehm, vice chancellor and vice president of the University of Nebraska–Lincoln’s Institute of Agriculture and Natural Resources.
“Our state’s deep roots in agriculture, coupled with Nebraska’s abundant natural resources and our ingenuity and grit, make CASNR the ideal and natural epicenter for nurturing the world’s next generation of change-makers,” Boehm said. “We want to do everything we can to build on CASNR’s culture that allows students to think critically, dream big and accomplish extraordinary things.”
Current and prospective students can apply online at https://casnr.unl.edu/casnr-change-maker-competition. Videos should be no more than two minutes long and must focus on one or more of the following issues:
> Feeding the world
> Water for the future
> New energy
> Climate and the future
> Biodiversity, sustainability and the environment
> Health
> Engaging diverse communities
> Developing tomorrow’s leaders
The competition opened on April 20 and will close at noon May 15. Winners will be announced in June, and winning videos will be shared on social media. The winner whose video receives the most likes will also receive a textbook scholarship.
Complete application guidelines and more information can be found at the webpage above.
Collegiate Farm Bureau Leaders Receive Ron Hanson Scholarship
The Nebraska Farm Bureau Foundation awarded the Ron Hanson Collegiate Leader Scholarship to two members of Collegiate Farm Bureau at the University of Nebraska – Lincoln who are pursuing degrees from the College of Agricultural Sciences and Natural Resources (CASNR).
Emily Reitz and Tanner Nun, both sophomores at CASNR, received $1,500 scholarships.
“Dr. Ron Hanson, professor emeritus at the University of Nebraska – Lincoln, established the scholarship to reward students who prioritize leadership building activities while on campus,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation. “A longtime Farm Bureau member, Dr. Hanson recognizes the power of grassroot volunteers, and he wants to encourage the next generation of leaders to step up, make their voices heard, and serve their communities. The Nebraska Farm Bureau Foundation is honored to steward this important award.”
This year’s recipients rose to the top of a strong candidate pool. Applicants were judged based on their involvement with Collegiate Farm Bureau, volunteer and leadership activities, and their goals for the future.
Reitz is pursuing a degree in Agricultural Education with a minor in Animal Science. She is involved in many volunteer organizations including Collegiate Farm Bureau, Nebraska FFA Foundation, and the Nebraska Human Resources Institute (NHRI). Reitz serves as a leadership mentor through NHRI for a seventh-grade student at a Lincoln middle school. Reitz also serves as the 2019-2020 UNL FFA Alumni Club secretary, where she works closely with fellow officers and members to help promote and advocate for Nebraska FFA and agricultural education. Upon graduation, Reitz aims to work in an agricultural education position that allows her to reach consumers of all ages to bridge the gap between consumers and agricultural producers.
Nun is pursuing a degree in Agricultural Education with plans to be an agricultural educator at a Nebraska high school. Nun volunteers as the treasurer for the UNL Collegiate Farm Bureau and is active in the Alpha Gamma Rho fraternity, where he serves as an Executive Officer and Philanthropy Chair. Nun is a member of the of the Nebraska Corn and Soy Ambassador program where he works alongside the Nebraska Corn Board, Nebraska Corn Growers Association, and other prestigious agricultural groups. His goal and purpose are to give the next generation of students opportunities to be successful in the Nebraska agricultural industry. He wants to help aid in creating a generation of passionate and driven agriculturalists to boost Nebraska agriculture, as well as the Nebraska economy as a whole.
Record High Red Meat, Beef, and Pork Production in March
Commercial red meat production for the United States totaled 5.00 billion pounds in March, up 13 percent from the 4.43 billion pounds produced in March 2019.
Beef production, at 2.41 billion pounds, was 14 percent above the previous year. Cattle slaughter totaled 2.92 million head, up 10 percent from March 2019. The average live weight was up 29 pounds from the previous year, at 1,368 pounds.
Veal production totaled 5.8 million pounds, slightly above March a year ago. Calf slaughter totaled 43,200 head, down 6 percent from March 2019. The average live weight was up 13 pounds from last year, at 232 pounds.
Pork production totaled 2.57 billion pounds, up 12 percent from the previous year. Hog slaughter totaled 11.9 million head, up 11 percent from March 2019. The average live weight was up 1 pound from the previous year, at 288 pounds.
Lamb and mutton production, at 12.2 million pounds, was down 6 percent from March 2019. Sheep slaughter totaled 187,500 head, 2 percent below last year. The average live weight was 131 pounds, down 6 pounds from March a year ago.
By State (million lbs - % March '19)
Nebraska .......: 709.4 114
Iowa ..............: 806.1 112
Kansas ...........: 525.9 116
January to March 2020 commercial red meat production was 14.4 billion pounds, up 8 percent from 2019. Accumulated beef production was up 8 percent from last year, veal was down 6 percent, pork was up 9 percent from last year, and lamb and mutton production was down 5 percent.
Webinar to Focus on Iowa Water Quality Challenge and Reducing Runoff
Iowa Learning Farms will host a webinar at noon on Wednesday, April 29, about the work being done in Iowa to reduce losses of agricultural nitrogen and phosphorus, as well as the progress that has been made.
What are the drivers of nutrient loss and water quality impacts in Iowa? To what extent are agricultural conservation practices being used in Iowa to address these concerns? This webinar will explore these questions, describe the wide variety of data sources available, and present findings from the forthcoming “Annual Progress Report of the Iowa Nutrient Reduction Strategy.”
Laurie Nowatzke, research analyst for the water quality program and the Iowa Nutrient Reduction Strategy at Iowa State University, will share how Iowa’s water quality efforts are tracked, the latest findings and where participants can find additional resources about these efforts.
“There are many programs and initiatives working toward reducing nutrient loss in Iowa,” said Nowatzke. “This project uses data to show the current status and outcomes of those efforts, and it aims to provide Iowans with timely information regarding water quality improvement.”
Nowatzke works for the College of Agriculture and Life Sciences to evaluate Iowa’s progress in meeting water quality goals, research Iowa farmers’ conservation practice adoption, and track statewide use of water quality improvement practices in agriculture.
To participate in the live webinar, shortly before noon on April 29 visit https://iastate.zoom.us/j/364284172. Or go to https://iastate.zoom.us/join and enter meeting ID: 364 284 172.
Or, join from a dial-in phone line by dialing +1 312 626 6799 or +1 646 876 9923. The meeting identification is 364 284 172.
The webinar will also be recorded and archived on the ILF website, so that it can be watched at any time. Archived webinars are available at https://www.iowalearningfarms.org/page/webinars.
A Certified Crop Adviser board-approved continuing education unit has been applied for, for those who are able to participate in the live webinar. Information about how to apply to receive the credit (if approved) will be provided at the end of the live webinar.
New Study: ASF Could Cost United States $50 Billion
National Pork Board newsletter
A new study by Iowa State University economists say the economic impact of an outbreak of African swine fever (ASF) on U.S. agriculture could be as much as $50 billion over 10 years. The researchers calculated the grim figure by determining that 140,000 jobs would be lost as a result of a downsized domestic pork industry devastated by uncontrolled ASF.
According to lead study author, Dermot Hayes, professor of economics and finance at Iowa State, the researchers looked at two scenarios. One assumes that the disease spreads to feral swine and that the United States is unable to eliminate the disease over the 10-year projection period (the all-years scenario). The second scenario assumes that the United States gets the disease under control and reenters export markets within two years. The immediate impact of both scenarios is a 40% to 50% reduction in domestic live hog prices, which would be needed to clear the market of surplus pork that would otherwise be exported.
In the all-years scenario, the domestic pork industry would be downsized after about five years of losses and remain at lower output levels for the remainder of the period. This would result in large employment losses. In the two-year scenario, the industry faces a period of large financial losses but is back in export markets before significant downsizing begins.
Pork industry losses would total $15 billion in the two-year scenario (green line in chart) and up to a little over $50 billion in the all-years scenario (red line). Nationwide employment losses would equal 140,000 jobs at the end of 10 years in the all-years scenario. There would be almost no job losses at the end of 10 years for the two-year scenario.
“This study underscores the need for ASF preparedness by everyone in the U.S. pork industry,” said David Newman, National Pork Board president and a pig farmer representing Arkansas. “It’s why the Pork Checkoff continues to encourage producers to participate in the voluntary Secure Pork Supply plan. It’s also why we’re continuing to collaborate with state, federal and allied-industry partners to protect our country from foreign animal diseases and to have plans in place should the worst ever happen.”
Papua New Guinea: Latest African Swine Fever Victim
The World Organization for Animal Health (OIE) confirmed the presence of African swine fever (ASF) in Papua New Guinea at the end of March. This latest outbreak officially put the costly disease in the geographic part of the world known as Oceania, most notably shared with Australia and New Zealand.
On the tropical island nation, more than 300 pigs had died in previous months in the Southern Highlands part of the country. As of March 30, more than 1,500 pigs had died from ASF. This was confirmed by tests done in neighboring Australia, which is less than 100 miles away by air.
Australian Pork Limited chief executive officer Margo Andrae said that the potential national economic impact of ASF reaching Australia was estimated at more than $2 billion (AUD).
“There is no cure for ASF, and millions of Australian pigs would be at risk if the disease reached our country,” she said. “That would devastate pork producers and Australian fresh pork supplies and seriously jeopardize the well-being of the 36,000 Australians employed in our industry.”
NCBA Sends Letter To Ag Secretary Sonny Perdue Urging Against CFAP Payment Limitations On Cattle Producers
The National Cattlemen’s Beef Association today sent a letter to the U.S. Department of Agriculture (USDA) urging against payment limitations for cattle producers under the Coronavirus Food Assistance Program (CFAP). NCBA Vice President of Government Affairs Ethan Lane issued the following statement:
“The economic damage to cattle producers across the country continues to mount due to the COVID-19 crisis. While we are extremely grateful to Congress, USDA and the Trump Administration for their work to keep the beef supply chain moving and deliver aid to our producers, we are concerned that the distribution of CARES Act funds to cattle producers could miss the mark.
"The low payment cap of $125,000 per commodity will prevent many operations, large and small, from receiving enough assistance to soften this blow. The proposed anticipated loss payment formula for cattle will also leave many producers, including a large percentage of the cow-calf sector, out in the cold. We do not believe this was USDA’s intent, but recognize we are in uncharted territory for the cattle industry with this type of assistance. As such, we feel it is critical to continue providing feedback from our producers across the country to USDA.
"We are hopeful that USDA will move quickly to outline additional plans for the $14.4 billion also allocated to damage assistance under the CARES Act and provide assurance that producers across all segments receive equitable assistance from these critical funds.”
Peterson Urges Pence, Coronavirus Task Force to Address Challenge facing Hog Farmers
In a letter Thursday to Vice President Mike Pence, who chairs the White House Coronavirus Task Force, House Agriculture Committee Chairman Collin C. Peterson called on the Federal government to address the building stress and challenges facing the nation’s pork producers.
“Because of COVID-19, many of America’s pork producers have no access to processing and have no choice but to depopulate their herds,” wrote Peterson, calling on the Vice President to marshal a “robust Federal response to address this dire situation.”
Specifically, Peterson urged the Vice President to direct the Task Force to:
·Coordinate between all involved Federal, state, and local governments to provide urgent assistance to impacted farmers;
·Develop standards for humane euthanasia and disposal of impacted animals as well as outreach on existing financial and technical assistance resources available to producers;
·Provide flexibility to use all available state and Federal processing capacity to the maximum extent possible to minimize supply chain disruption;
·Issue Federal guidance on best practices to prevent COVID-19 transmission in plants;
·Provide access to adequate COVID-19 testing for plant workers and communities;
·Provide sufficient personal protective equipment for all plant workers and federal meat inspectors;
·Develop resources and conduct outreach to help farmers deal with added stress during this difficult time; and
·Utilize any other means at the Task Force’s disposal to support farmers, processing plant workers, and plant communities.
“Without fast action and clear coordination, this situation will only get worse, not just for pork producers but for other livestock and poultry producers as well,” Peterson added.
NCBA Ensures Cattle Producers Can Access Additional PPP Relief
NCBA Vice President, Government Affairs Ethan Lane, today released the following statement in response to final Congressional approval of the Paycheck Protection Program Increase Act.
“America’s cattle producers are working hard every day to keep feeding America, even as they face more than $13 billion in financial losses while also tending to the health of their families during this pandemic,” said Lane. “We truly appreciate the swift bipartisan passage of the PPP Increase Act, which we hope will make more aid available to cattle producers across rural America. We’re also thankful Congress explicitly authorized producer eligibility for Economic Injury Disaster Loans and emergency grants administered by the Small Business Administration.
Extending this program to agriculture provides another critical source of financing to help preserve family farm and ranch businesses suffering in the wake of the COVID-19 pandemic.
Following NCBA’s letter to USDA earlier today, members in both chambers of Congress sent a letter to President Trump, aligning with NCBA’s request that payment caps be lifted to ensure all cattle producers can access the funds that will be needed to sustain their operations through the COVID-19 crisis. The bipartisan, bicameral effort was signed by more than 150 members of the House and Senate, and urgently requests the lifting of payment caps for the agricultural industries which continue to fight hard to feed Americans despite massive economic hardships.
Lane said NCBA members are extremely thankful to members of the House and Senate who spearheaded support for the request.
“We’re very thankful to the many elected officials on both sides of the aisle who have worked together with each other and with NCBA to make sure that America’s cattle producers have what they need to keep feeding our nation during these challenging times, and we look forward to working in a bipartisan and cooperative way as we continue to move forward through this crisis.”
Feed Pigs Less Fat, More Fiber to Slow Growth
As work at meat processing plants slows during COVID-19, hog producers may want to feed pigs cheaper diets and hold them longer.
University of Missouri Extension swine nutritionist Marcia Shannon says producers can feed more fiber and less fat to slow growth.
"This is a good time to move to feeding low-energy, high-fiber diets with an adjusted lysine-to-calorie ratio and remove any growth-promoting technologies," Shannon says.
Fiber, a poor source of energy, is cheap and fills pigs up. Pigs might eat more, but the feed is cheaper than traditional mixes, she says. Fiber is the carbohydrate part of the diet that can't be digested by enzymes secreted in the pig's intestinal tract.
Shannon suggests replacing all protein and fat sources with soy hulls, wheat middling, wheat bran, corn gluten or sugar beet pulp, but probably not distillers grains because those sources are drying up as well due to lower gas prices and reduced ethanol production. Currently, most other fiber sources are easy to find in Missouri.
One drawback is that confinement pits will fill with more manure when feeding high-fiber diets. "This means confinement producers will need to monitor their manure management more closely," she says.
The goal is to increase the neutral detergent fiber (NDF) content of the diet to 20%. Pigs fed NDF content of 10-15% will eat more to meet their daily energy requirement. As NDF nears 20%, pigs get too full to eat, Shannon says.
Also, remove additives such as copper sulfate and extra protein packs that raise the cost of the diet. "Don't add any extra fat. Cheapen those diets up," she says.
Doing this will increase time in the finisher by as much as four to seven days. If producers remove growth promoters, they might be able to add two or three days more on top of that. The younger the pigs are, the easier it is to slow growth.
Show-pig producers have used this growth technique successfully for many years to continue to show in certain weight classes at fairs, she says.
Shannon says she does not recall anything that has closed processing plants for this length of time. Even a day's closing for an ice storm can cause a backlog in the food supply chain.
"If some of these meat processing plants stay closed for an extended period, we'll see a backlog. Some estimates are four days of backlog for every day the plant is closed," she says.
Two years ago, pork producers dealt with piglet losses from porcine epidemic diarrhea virus, another coronavirus. Unlike COVID-19, PEDV does not affect humans. However, both will have huge impacts on the swine industry through disruptions in the food supply chain.
Shannon recommends related resources at pork.org/public-health/what-you-need-to-know-about-covid-19. MU Extension also lists numerous COVID-19 resources at extension2.missouri.edu/covid-19-resources-public.
Cattle and Beef Markets
Stephen R. Koontz, Dept of Ag Economics, Colorado State University
Early in the month of March, cattle and beef markets began to price a worst-case scenario. Composite beef values rallied as retailers chased supplies. Fed cattle prices softened as animals were pulled forward from the pool of already large supplies. Wholesale margins widened considerably to the consternation of upstream and downstream market participants. But the concern was clearly about supply chain disruptions in slaughter and fabrication. Now, one month later, the market concern has clearly come to fruition. Several North American beef plants are temporarily offline or are operating at reduced speeds. The first week of April, steer and heifer slaughter were close to 550 thousand head. The prior four weeks of March slaughter was close to or above 500 thousand head per week. For the most recent week of April slaughter will likely be around 400 thousand head or lower. We will have to wait until the end of the month to see the USDA data but these are reasonable estimates given the known impacts on plant operations. Packer margin discussions are irrelevant when plants don't run.
How long will reduced beef plant operations continue? That is the next unknown the market is pricing. Boxed beef values have given back half of the late-March rally. And individual primal cut values are showing their relationship to at-home versus away-from-home consumption: end meats are strong and middle meats are weak. Fed cattle prices continue to soften and the impact of delayed marketings will weigh on the market until summer. I'll get to talk about the normal spring rally in fed and feeder cattle next year. Fed animal slaughter weights have started the seasonal decline but the inventory of long-fed cattle is climbing. The Cattle on Feed Report at the end of this week are inventories as of the first of the month and flows from last month. So, the uncertainty of pricing short-term needs and availability will be unclear for at least another month. Some certainty to the course of the CORVID-19 pandemic will be needed to mitigate this risk.
I remember the record low hog prices of 1998. We don't often consider the possibility of something like that happening again. Perhaps now is the time. And any concern that producers have about cattle and beef prices needs to consider that happened in the oil futures market on Monday and Tuesday. The May crude oil contract closed at a negative $37.63 per barrel on Monday, after trading down to a negative $40, and opened at a negative $14 on Tuesday. Apparently, there was a long position that needed to be liquidated... Regardless, the oil complex is trading below $15 in the nearby and below $30 for the rest of the year. This is not good news for the economy.
NMPF Commends Progress Towards SBA Programs Better Assisting Farmers
Jim Mulhern, president and CEO of National Milk Producers Federation (NMPF), the largest U.S. dairy-farmer organization, issued the following statement in anticipation of the U.S. House of Representatives passing H.R. 266, which would replenish funding for Small Business Administration (SBA) loan programs in the CARES Act:
“We appreciate Congress’s bipartisan efforts to support our nation’s small businesses and workers both with the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loans (EIDLs) included in the CARES Act. Dairy producers and other farmers have not had equitable access to these important programs due to how they were rolled out, and this legislation should help improve that access.
“To ensure that dairy producers can receive the support Congress clearly intended for them to receive as small businesses, NMPF has worked with allied stakeholders, members of Congress from both parties, and administration officials to make certain that PPP and EIDLs are properly administered. NMPF thanks our champions in Congress and their staff for everything they have done to address the disadvantages farmers have faced when trying to access this needed small business support.
“In addition to providing further funding for PPP and COVID-19 EIDLs, this bill changes these programs in ways that make treatment for dairy producers more equitable. NMPF is extremely pleased that Congress makes it clear in this bill that farmers with 500 or fewer employees should be able to access COVID-19 EIDLs, removing a significant obstacle that has prevented small business support from reaching America’s farmers. On the PPP side, we are hopeful that the measure’s provisions aimed at ensuring small lenders – including community banks and credit unions – have adequate access to PPP funds will make it easier for dairy producers and others in rural areas to apply for support.
“It’s important to note that issues remain with these programs, including challenges family farms and other sole proprietors face when trying to apply for a PPP loan. NMPF will continue efforts to address remaining problems so farmers are better enabled to fulfill their critical role in helping our nation throughout this pandemic.”
New 2021 hybrids and varieties bring farmers more diversity and maximize trait choice
Golden Harvest is expanding its product portfolio for the 2021 growing season with the release of 12 new corn hybrids and 22 new soybean varieties. The diverse portfolio is bred with elite genetics to equip farmers with agronomic options for all field types, soil characteristics and weather conditions so farmers can find the products that work best for their fields.
"The 12 new Golden Harvest® corn hybrids are coupled with more industry-leading Agrisure® traits than ever before and join a strong portfolio of Golden Harvest and Enogen® corn hybrids that not only bring farmers outstanding agronomics like strong stalks and great roots, but also fit a wide variety of acres," said Drew Showalter, Syngenta strategic corn marketing manager. "We are introducing hybrids that are going to fit on highly productive acres and deliver top-end yield potential, and we're also bringing our customers hybrids better suited for moderately productive acres, in the trait version they need."
The 12 new hybrids range in relative maturity from 96 to 115 days and include:
- One hybrid with Agrisure Artesian® technology, the most advanced water optimization technology for season-long performance.
- This 104-day hybrid also contains Agrisure Viptera®, bringing two industry-leading traits together for a broad fit in the central and western Corn Belt.
- Six hybrids with the Agrisure Viptera® trait, the most comprehensive above-ground insect control and the only effective western bean cutworm control trait.
- Five hybrids with the Agrisure Duracade® trait for above-and-below ground insect protection and the best-in-class corn rootworm control.
- Nine hybrids available as E-Z Refuge® seed blend products, providing a convenient, in-bag seed blend.
The 22 new Golden Harvest soybean varieties join an industry-leading portfolio at the forefront of weed control technology. The Golden Harvest soybean portfolio offers farmers access to Enlist E3®, the newest soybean technology, as well as Roundup Ready 2 Xtend® soybeans and LibertyLink® GT27.
The varieties contain the industry's broadest choice of herbicide trait options, and their high-yielding genetics are proven performers. 2019 Farmers' Independent Research of Seed Technologies (FIRST) trial results revealed that Golden Harvest varieties took home 23 top three finishes and eight first place wins.
"We offer soybean varieties that provide farmers with consistent performance in trait choices that provide options to help crush not only weeds, but also the competition," said Stephanie Porter, Golden Harvest soybean product manager.
The 22 new varieties range in relative maturity from .05 to 5.1 and provide advanced trait technology for maximum soybean yield potential.
- 14 varieties include the new Enlist E3 trait technology with three modes of action, offering tolerance to 2,4-D choline, glyphosate and glufosinate.
- Three offer Sulfonyl-Urea Tolerant Soybeans (STS®) herbicide tolerance and may increase tolerance to ALS-inhibitors, allowing higher application rates on select herbicides.
- Six varieties include Roundup Ready 2 Xtend trait technology.
- Two varieties include the new LibertyLink GT27 trait technology.
The Golden Harvest portfolio is available from Golden Harvest Seed Advisors, who deliver high-yielding seed options combined with local agronomic knowledge. To find your local, independent Seed Advisor and gain more information on Golden Harvest corn and soybeans, visit GoldenHarvestSeeds.com.
Coalition of Farmer, Environmental, and Antitrust Groups Urges Mnuchin to Ban Large Agribusinesses from CARES Act Aid
A coalition of 68 farmer, environmental, and antitrust groups across the country sent a letter to Treasury Secretary Steven T. Mnuchin today, urging the U.S. Department of the Treasury to ensure that pandemic relief funds do not lead to a further consolidation of the food and agriculture industry.
The letter urges Secretary Mnuchin to instead invest stimulus funds into farming systems that lift up farmers and rural communities while providing opportunities for diverse, sustainable agriculture systems to thrive. The letter argues that the current food system under the control of a few major corporate players is unsustainable — a reality that the coronavirus pandemic has laid bare.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law late March, provides over $2 trillion in funds to help individuals and businesses weather the economic challenges stemming from the coronavirus pandemic. The package includes $9.5 billion for the U.S. Department of Agriculture (USDA) to distribute to farmers and agriculture businesses. However, Title IV of the CARES Act authorizes an unprecedented $500 billion to the U.S. Treasury Department “to make loans, loan guarantees, and other investments” to businesses, states, and municipalities.
“While farmers and advocates of rural communities are closely watching how USDA will distribute the $9.5 billion allocated through the CARES Act, little discussion or oversite is being given to this other, much larger pot of money with few strings attached,” said Wenonah Hauter, Executive Director of Food & Water Action. “Treasury Secretary Mnuchin must make sure that money from this $500 slush fund doesn’t flow straight from the Treasury Department into the pockets of large corporations, including the food and agricultural corporations that already have a stranglehold on the market.”
“During this crisis, relief must be prioritized for the frontline workers and farmers who are the backbone of America’s food supply,” said Jason Davidson, food and agriculture campaigner with Friends of the Earth. “Consolidation in food and agriculture has already taken a toll on the security of our food system. The Trump Administration must not use Title IV funds to place more power in the hands of corporate agribusiness to wield against small farmers.”
Large agribusinesses have spent the last few decades consolidating their market power through horizontal and vertical mergers. Farmers today buy inputs from and sell into a tightly consolidated market, depressing farm income while raising prices consumers see at the grocery registers. For example, the top four beef processing firms slaughter four out of every five cattle in the U.S. Yet farm wages are stagnant, with medium farm income at negative $1,840.
The pandemic exposes the weaknesses in this tightly consolidated system and the detrimental impacts on farmers, workers, and rural communities. It is no surprise that slaughterhouses, where workers face grueling conditions in close quarters, are epicenters of the coronavirus pandemic. Additionally, the rise in large slaughterhouses — such as Smithfield’s Sioux Falls, SD plant, which processes 4 to 5 percent of all U.S. hogs — obliterated locally owned slaughterhouses. This means the closure of a single plant due to an outbreak in COVID-19 leaves thousands of farmers with no market in which to sell their livestock.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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