Thursday April 2 Ag News

Nebraska Farm Bureau Foundation Announces 2020 FFA Advisors of the Year

The Nebraska Farm Bureau Foundation selected two recipients for the FFA Advisor of the Year award. Gary Maresh from Central City High School and Dan Mowinkel from Logan View High School in Hooper were honored during a Facebook LIVE ceremony on the Nebraska Farm Bureau Foundation’s Facebook page on Thursday, April 2. The winning advisors received a plaque and a $1,000 donation to their FFA chapter.

The teachers were nominated by their own students and chosen based upon their school and community involvement, leadership development in their classroom, and ability to keep their students involved in agriculture.

“It is an honor to recognize two teachers with long histories of investment in their students, communities, and Nebraska agriculture,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation. “Mr. Maresh and Mr. Mowinkel have decades of dedicated service, and their positive impact will reach across Nebraska and beyond for years to come.”

Maresh is the FFA Advisor for the Central City FFA Chapter and is entering his 43rd and final year as an educator and FFA advisor. During his career, he has spent countless hours working with his students to make sure they are comfortable going out to communicate with businesses and people. He brings community leaders into his classroom to present on their expertise, giving his students the opportunity to learn from others.

“I have had the privilege of teaching in Central City my entire 43-year career. I have had so many great students and parental support. I really feel proud when I see former students return home to be involved in agriculture or be productive citizens. I am humbled by this honor and I want to thank Nebraska Farm Bureau for this honor and my FFA chapter for the nomination,” Maresh said.

Mowinkel has been the FFA Advisor for Logan View FFA Chapter for 30 years. Mowinkel is a pillar in his community, serving as the Grand Marshall for the Fremont fair last year and coaching softball and wrestling for the high school. In his classroom, Mowinkel brings live animals and creates hands-on labs to make learning interactive and keep students engaged. In the last year, Mowinkel has led many students to set new records in Logan View FFA. He sets students to a high standard and encourages them to put in the work outside the classroom to be successful.

“I'm honored to receive this award; I believe every child I taught and advised has unique qualities and abilities. My greatest hope is that I got them to achieve more than they thought was possible and that they know that I cared for each and every one of them,” Mowinkel said.

“We had a number of exceptional nominations this year. All of the FFA advisors nominated make a positive difference every day,” Schafer said. “They invest in the students who are the future of our great state, and we are proud to celebrate their service.”



DROUGHT CENTER, CALMIT HELP LAUNCH DROUGHT-MONITORING, FORECAST TOOLS

The movement of water across the globe causes small fluctuations in the planet’s gravity field. One wouldn’t notice the difference by clocking the speed of falling apples, but a set of NASA satellites was tasked with detecting these seemingly imperceptible gravitational changes from space, starting in 2002. What NASA’s Gravity Recovery and Climate Experiment (GRACE) satellites recorded helped tell the story of water movement above and below the Earth’s surface.

Now, thanks to help from two centers in the University of Nebraska–Lincoln’s School of Natural Resources, information from the GRACE satellites’ upgraded replacements is being used to produce and share first-of-their-kind maps of topsoil, root zone soil and groundwater moisture around the world, as well as 30-, 60- and 90-day forecasts of wet and dry conditions across the continental United States.

Brian Wardlow, director of the university’s Center for Advanced Land Management Information Technologies (CALMIT), said that the snapshots of conditions in deep aquifers that the GRACE satellites provided have no remote-sensing equivalent.

"This is the culmination of almost a decade-long partnership with NASA scientists to develop remote-sensing-based monitoring tools and now forecasts for both the national and global drought- monitoring community," Wardlow said.

With the GRACE-FO (Follow-On) satellites, the information about dry or wet conditions at the three depth levels that was only available for the Lower 48 states is now available to the world. Providing that information to drought monitors has been a key goal since the Nebraska centers began collaborating on GRACE projects with NASA.

"The idea of getting improved information on soil moisture conditions has always been a critical area of need (for drought monitoring),” said Wardlow, the principle investigator on the projects. “That's always been one of the holy grails of remote sensing or drought monitoring. That's always been a key information gap. What makes this more unique is it's the only remote-sensing drought indicator approach that also assesses groundwater. This is really a first of its kind."

Now, the maps could inform drought-monitoring operations globally, said hydrologist and project lead Matt Rodell of NASA’s Goddard Space Flight Center in Greenbelt, Maryland.

“The global products are important because there are so few drought-monitoring products out there,” Rodell said. “Droughts are well-known when they happen in places with a populated area. They’re usually well-documented. But then there are other droughts that happen, and no one really takes notice. So it’s interesting also to have a product like this where you can say, ‘Wow, it’s really dry there, and no one’s reporting it.’”

Many developing countries do not have much or any groundwater- or soil moisture-monitoring infrastructure. Providing a resource that experts in those countries can factor into their drought-monitoring efforts can help build resiliency worldwide, Wardlow said.

“Drought is really a key area moving forward with a lot of the projections of climate and climate change,” Wardlow said. “The emphasis is on getting more relevant, more accurate and more timely drought information, whether it be soil moisture, crop health, groundwater, streamflow — GRACE is central to this. These types of tools are absolutely critical to helping us address and offset some of the impacts anticipated, whether it be from population growth, climate change or just increased water consumption in general.”

Maps are hosted online on the National Drought Mitigation Center website, and the remote-sensing tools for operational drought monitoring that utilize NASA technology were developed in collaboration with CALMIT. NASA’s GRACE-FO satellites began orbiting Earth after NASA decommissioned the GRACE satellites in 2017. 

The GRACE satellites provided information about soil moisture and groundwater levels across the Lower 48 states. Authors of the U.S. Drought Monitor have used it for years to create the weekly map that depicts the most current conditions of drought in the country and informs federal financial-aid decisions due to drought losses.

Agricultural producers have long monitored soil moisture and groundwater levels for the sake of their crops’ health. Surface and root zone soil moisture levels are telltale signs of plant health, and farmers in areas with groundwater may use it more for irrigation when conditions are dry. While there are groundwater monitoring stations across the country that U.S. Drought Monitor authors can consult, satellite observations have told a more detailed and efficient story of soil moisture and groundwater, said Brian Fuchs, National Drought Mitigation Center climatologist and U.S. Drought Monitor author.

“GRACE was one of the first satellite platforms that was looking at soil moisture and groundwater moisture itself,” Fuchs said. “There really wasn't anything out there doing that at the time. We had a lot of different soil moisture models, and we had groundwater data that was piecemeal. Each state was putting their own information out, and you would have to bounce to many different states if you wanted to get a regional picture of groundwater. From the Drought Monitor side, having that in our back pocket to start looking at another input, another piece of data that really wasn't out there at the time and was needed, was pretty important.”

Along with providing global outlooks, the GRACE-FO data is informing a set of forecasts that project dry and wet conditions 30, 60 and 90 days out for the continental United States. The GRACE-FO data provides the baseline information, which is combined with a weather model that provides rainfall information.

“It is going to (help) a broad scope of people,” Fuchs said. “You're going to see anyone from individual producers from the ag sector using it, as well as water supply managers, policymakers and different decision-makers at different levels of government who would have the opportunity to look at that. Even the folks at the Climate Prediction Center who do the long lead outlooks and the long-range forecasting — they could incorporate some of this data into their products.”

To produce the information that fuels these new products, the GRACE-FO satellites orbit in tandem about 137 miles apart. The raw data sent to Earth is a collection of measurements showing how far apart they are as they circle the globe. In areas with slightly stronger gravity, the lead satellite is initially pulled ever so slightly away from its trailer. Then the trailing satellite returns closer to its twin as it passes over the gravity anomaly. Microwave signals sent between the satellites measure the imperceptible distance differences that take place, and tell the story of how mass — most often water — is moving across the planet.

To view the forecasts and global outlooks, visit https://nasagrace.unl.edu.



 Smith Requests Immediate Assistance for Cattle Producers

In response to concerns about cattle prices, Congressman Adrian Smith, the rest of the Nebraska delegation, and over 100 other members of Congress wrote a letter to U.S. Department of Agriculture (USDA) Secretary Sonny Perdue urging implementation of assistance for producers as quickly as possible. Congressman Smith released the following statement:

“During the COVID-19 outbreak, we have seen first-hand the importance of food production and how much we rely on our producers. Despite the crucial role our cattle producers play in feeding our nation, they are now having to weather low prices and market volatility, among other constraints. We owe a great deal of thanks to our producers for feeding America. It is now our turn to provide the assistance they need during this unprecedented time.”

Phase III of the federal government’s COVID-19 response, known as the CARES Act, which was recently signed into law by President Trump, provides $9.5 billion in emergency funding and replenishes the Commodity Credit Corporation (CCC) for agricultural producers impacted by COVID-19, including livestock producers.

Full text of the letter:

Dear Secretary Perdue,

We write to request swift assistance for cattle producers with the resources provided in the recently enacted Coronavirus Aid, Relief, and Economic Stabilization (CARES) Act to facilitate the stabilization of farm and ranch income to producers who are facing market volatility in the wake of the COVID-19 pandemic and economic fallout.

Recognizing the market volatility and financial hardships producers are facing because of COVID-19, the CARES Act provides $14 billion toward replenishment of the Commodity Credit Corporation and an additional $9.5 billion for the U.S. Department of Agriculture (USDA) to assist farmers and ranchers in response to COVID-19.  While we do not know what the full market impact will be for the various commodities produced in our states, we recognize that there is an immediate need for assistance for our cattle producers.

We request that USDA consider data and estimates available from the Office of the Chief Economist and implement a program that would directly respond to the negative effect on producers caused by COVID-19.  This program should deliver targeted, temporary, equitable relief to cattle producers in a manner that limits market distortions and negative effects on price discovery.

The COVID-19 outbreak has demonstrated the need for domestic food security.  All farmers and ranchers are vital to our country’s ability to keep food on the table in a future pandemic or related crisis, and many producers, including young producers, are often highly leveraged and cannot fall back on years of equity in a time of crisis.  As such, we urge you to quickly deliver relief to producers as we work to lessen the economic impact of this pandemic.



NPPC Urges SBA to Ensure Ag Businesses Can Access Disaster Loan Program

The National Pork Producers Council (NPPC) joined 30 agriculture organizations yesterday in urging the U.S. Small Business Administration (SBA) to ensure agricultural business can participate in the economic disaster loan program included in the CARES Act.

Earlier this week, SBA posted information on its Economic Injury Disaster Loan (EIDL) program website stating applicants do not qualify for loans if they are an agricultural enterprise (e.g. farm). However, the CARES Act, signed into law last month, does not specifically exclude agriculture from this program. Congress intended for all business fewer than 500 employees to participate, NPPC and the agriculture organizations wrote yesterday to SBA Administrator Jovita Carranza.

"Agricultural producers and businesses are critical elements of this nation's economy and food system. Prior to COVID-19, farmers and ranchers had already experienced a drastic 24-percent decline in net farm income from highs experienced just six years ago. With the further downturn in the economy, agricultural businesses are at risk of closure and may be required to lay off employees," the letter explained. "Many agricultural producers need access to this critical source of financing to help preserve their businesses and avoid further disruptions to our economy and food systems," the letter added.

"As part of the critical U.S. food supply infrastructure, U.S. pork producers are committed to keeping Americans and consumers around the world supplied with nutritious protein. To ensure a continued and uninterrupted supply of pork to America's kitchens, hog farmers must have access to necessary resources, including this vital economic disaster loan program," said NPPC President Howard "A.V." Roth, a pork producer from Wauzeka, Wisconsin. "We urge SBA to implement this program as intended by Congress, allowing pork producers to participate and remain committed to keeping consumers supplied with nutritious protein," he added.

Learn more about U.S. pork producer efforts to ensure an uninterrupted supply of pork by visiting: http://nppc.org/issues/issue/your-food-is-our-priority/. 



Agriculture Must Be Included in Disaster Loan Program

Thirty-one agriculture organizations and businesses are calling on the U.S. Small Business Administration to include agricultural businesses in the Economic Injury Disaster Loan program, as intended by Congress in the CARES Act.

The notice on the SBA website currently states applicants must certify they are “not an agricultural enterprise (e.g., farm), other than an aquaculture enterprise, agricultural cooperative or nursery.” Yet, the actual text of the CARES Act does not exclude agriculture producers and states all businesses with fewer than 500 employees can participate in the program.

In a letter to SBA Administrator Jovita Carranza, the agriculture groups wrote, “Agricultural producers and businesses are critical elements of this nation’s economy and food system. Prior to COVID-19, farmers and ranchers had already experienced a drastic 24-percent decline in net farm income from highs experienced just six years ago. With the further downturn in the economy, agricultural businesses are at risk of closure and may be required to lay off employees.”

The American Farm Bureau Federation is among the organizations that signed the letter and AFBF President Zippy Duvall said, “Farmers and ranchers are the critical first link in America’s food supply chain. The pandemic’s impact on agriculture is coming in waves due to dramatic changes in demand, falling commodity prices and supply challenges. Farmers must have access to the Economic Injury Disaster Loan program, as Congress intended, to ensure America continues to have access to healthy, affordable food.”

President and CEO of the National Milk Producers Federation, Jim Mulhern, said, “We must ensure that all essential agricultural businesses can continue operating during the coronavirus crisis, including those in dairy, which is critical to consumers. Congress was clear in the CARES Act that it intends for agriculture to be able to access EIDLs, and NMPF thanks members of Congress for their work to ensure dairy farmers can continue to provide wholesome, nutritious food to Americans as we navigate this pandemic. We now call on the Small Business Administration to implement the EIDL provisions in the CARES Act as intended by Congress, allowing dairy farmers to access the program.”

Brian Kuehl, Director of Federal Affairs for KCoe Isom, added, “We think Congress clearly intended to include ag businesses in the emergency Economic Injury Disaster Loan program. The Small Business Administration should make that clear as soon as possible. For heavily impacted ag businesses, the ability to secure this type of financing will decide whether they can stay in business.”



Today’s Dairy Difficulties to Reverberate for Several Months, NMPF’s Vitaliano Says

National Milk Producers Federation Chief Economist Peter Vitaliano says current coronavirus-created gloom over dairy prices as expressed in futures markets may turn out be overstated in the end, but that the pain felt by producers over the next few months will be real, as lower prices make their way into milk checks paid to farmers for their milk.

“These are unusual circumstances that I’m not sure the futures have figured them out yet,” Vitaliano says in an NMPF podcast released today. Because milk in stores now was purchased at earlier, higher prices, “producers are not seeing this in their milk checks yet,” he said. “That’s going to come over the next several months, because the forecasts are all indicating that we’re going to be to be hitting the trough in May and June.”

Vitaliano also said that a USDA aid package for dairy farmers would be most effective if “they would pretty much follow” recommendations NMPF made in a letter to Agriculture Secretary Sonny Perdue last week. NMPF in its letter called for:
-    Additional dairy-product purchases, which will help Americans in need during what may be a period of very high demand at food banks;
-    Compensation for milk disposal, a real possibility as logistical challenges on the farm and at manufacturing plants may create severe disruptions; and
-    Re-opening signup for participation in the Dairy Margin Coverage (DMC) program, the main safety net for dairy farmers, especially small and medium-sized producers. DMC participation declined in 2020 because of forecasts for higher prices that have been radically revised in light of coronavirus.



USDA Dairy Products February 2020 Highlights

Total cheese output (excluding cottage cheese) was 1.03 billion pounds, 3.7 percent above February 2019 but 7.4 percent below January 2020. Italian type cheese production totaled 449 million pounds, 1.8 percent above February 2019 but 7.4 percent below January 2020. American type cheese production totaled 415 million pounds, 6.1 percent above February 2019 but 5.1 percent below January 2020. Butter production was 179 million pounds, 8.9 percent above February 2019 but 7.3 percent below January 2020.

Dry milk products (comparisons in percentage with February 2019)
Nonfat dry milk, human - 156 million pounds, up 1.5 percent.
Skim milk powder - 40.4 million pounds, up 13.5 percent.

Whey products (comparisons in percentage with February 2019)
Dry whey, total - 76.5 million pounds, up 2.1 percent.
Lactose, human and animal - 87.2 million pounds, down 11.1 percent.
Whey protein concentrate, total - 36.0 million pounds, down 8.3 percent.

Frozen products (comparisons in percentage with February 2019)
Ice cream, regular (hard) - 51.8 million gallons, down 0.6 percent.
Ice cream, lowfat (total) - 32.7 million gallons, up 1.4 percent.
Sherbet (hard) - 3.01 million gallons, up 13.6 percent.
Frozen yogurt (total) - 4.33 million gallons, down 3.7 percent.



February U.S. Ethanol Exports Surge to Two-Year High while Global Sales of U.S. DDGS Subside
Ann Lewis, Senior Analyst, Renewable Fuels Assoc.

U.S. ethanol exports intensified in February, continuing the upward trajectory kicked off in December. Global sales surged 28% higher to 194.2 million gallons (mg)—up 71% from year ago volumes for the highest monthly volume in two years. Robust sales in Brazil (56.1 mg), India (47.6 mg—a record high), and Canada (29.4 mg) did much of the heavy lifting with 7 of every 10 gallons landing in those countries in February. Elevated ethanol sales for the first two months of the year implied an annualized export pace of 2.07 billion gallons.

Shipments of U.S. undenatured fuel ethanol increased 7% in February to 102.2 mg (the largest volume since April 2018) despite declining volumes among our largest customers. Brazil purchased 56.1 mg—or 55% of global sales—a 4% decline from January, while the Netherlands imported 11.0 mg (-15%) and India imported 9.6 mg (-18%). Other larger markets saw boosted volumes, to include the United Kingdom (8.9 mg, nearly triple January sales), the Philippines (6.9 mg, +10%), and Jamaica (5.0 mg).

Exports of U.S. denatured fuel ethanol bounced back after declining to a three-month low in January. Shipments increased north of the border, with Canadian imports up 21% to 28.4 mg. India imported a record 28.1 mg (up from 1.6 mg), while South Korea (8.7 mg), Colombia (6.0 mg), Peru (4.2 mg), and Mexico (3.8 mg) accounted for the residual exported gallons.

Exports of U.S. ethanol for non-fuel, non-beverage purposes jumped 72% to an eleven-month high of 12.8 mg thanks to India’s purchase of 10.0 mg of denatured product. Canada and South Korea were our other larger customers.

The U.S. imported 22.5 mg of cane ethanol from Brazil after taking a month off. On an annualized basis, the pace during the first two months of the year would equate to 135.2 mg.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—declined in February by 13% to 852,904 metric tons (mt). However, while sales slipped below recent averages, DDGS exports were 24% higher than year ago shipments. Mexico again retained its position as our top DDGS export market (accounting for 19% of global sales) despite a marginal decrease (165,609 mt, -2%). Asian markets were appreciably important as five of our top six customers—responsible for half of all U.S. DDGS exports—were located in the East: South Korea (127,776 mt, -1%), Indonesia (102,117 mt, -12%), Vietnam (65,419 mt, +18%), Japan (62,695 mt, +18%), and Thailand (60,239 mt, -17%). Sales for the first two months of 2020 imply an annualized export volume of 10.98 million mt.



USGC Engagement Helps U.S. Ethanol Fill Australian Fuel Needs

U.S. ethanol is helping meet fuel supply needs in Australia - the result of a domestic supply gap and engagement by the U.S. Grains Council (USGC) and its ethanol industry partners.

“U.S. ethanol is not subject to tariffs into Australia, per the terms of the Australia–United States Free Trade Agreement that went into effect in 2005, but it does face a price disadvantage due to an excise tax that exempts domestic producers,” said Brian Healy, USGC director of global ethanol market development. “Our discussions with the Australians have always focused on the benefits of expanded national ethanol use, beyond the state policies, to at least a 10 percent blend rate, allowing a role for trade.”

Australia - a net crude oil importer - does not have a national requirement to blend ethanol. As a result, ethanol accounts for less than two percent of fuel sales, even though ethanol is supported at the state level with blend requirements of 6 percent in New South Wales and 3 percent in Queensland.

The country’s three ethanol producers typically can meet this domestic demand. In the current year, however, Australia is facing a scarcity of fuel ethanol - the combination of a shortage in wheat and other feedstock supplies due to widespread wildfires and a transition by Australian bio-refineries from fuel ethanol to increased production of Extra Neural Alcohol (ENA) for industrial use.

As a core mechanism to ensure supply in meeting blend policies, ethanol trade has supported the Australian states of New South Wales sand Queensland in meeting their mandates. The United States exported 3.1 million gallons of ethanol (1.01 million bushels in corn equivalent) to Australia in the 2018/2019 marketing year, up from minimal volumes the previous marketing year. To-date in the current marketing year (September 2019-February 2020), U.S. ethanol exports to Australia totaled 635,000 gallons (223,000 bushels in corn equivalent).

These figures represent U.S. ethanol sold directly into Australia. However, ethanol traders commonly buy U.S. ethanol to store and breakbulk into smaller parcels in South Korea for transhipment into South East Asia and Oceania, including to Australia. That means realized U.S. ethanol exports into Australia are even higher than direct sales - upwards of an additional 4.8 million gallons (1.7 million bushels in corn equivalent) in 2019 and another 2.2 million gallons (780,000 bushels in corn equivalent) thus far in 2020.

Engagement by the Council and its U.S. industry partners, Growth Energy and Renewable Fuels Association, helped secure these imports. Two Australian attendees participated in the Ethanol Summit of the Asia-Pacific in May 2018, which brought together high-level ministry and industry officials from 17 countries to encourage cross-cooperation among countries as they seek to develop or further enhance renewable fuels policies and, in particular, promote the adoption of ethanol policies with a role for trade.

Those conversations continued at the Global Ethanol Summit in October 2019. At the event, the Council, its ethanol industry partners and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA’s FAS) encouraged future policy changes to address the excise tax discrepancy.

The Council remains engaged in these discussions, including helping sponsor the Australia Clean Fuels Summit in October 2020. The event will bring together experts from across the entire Australian fuel supply chain to exchange best practices for enhanced ethanol policies and greater overall usage.

“The Council and its partners continue to engage in the Australian market to support adoption of a nationwide ethanol policy,” Healy said. “Providing technical expertise and consistent messages encourages ethanol policies with a role for trade that support the Australians in meeting the objectives of their state policies at a national level.”



USDA Adds Flexibilities for Crop Insurance to Support America’s Farmers and Ranchers

USDA’s Risk Management Agency (RMA) is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through Approved Insurance Providers (AIPs) to deliver services, including processing policies, claims and agreements. These flexibilities include: enabling producers to send notifications and reports electronically, extending the date for production reports and providing additional time and deferring interest on premium and other payments.

“Crop insurance will continue to support farmers through the challenges ahead, and our RMA team is here to support them,” RMA Administrator Martin Barbre said. “We are working with the AIPs to continue to deliver crop insurance and to respond to farmer needs.”

Electronic Notifications Allowed for Required Reports
Producers may send notifications and reports electronically for written agreement issues, acreage and production reporting and upcoming sales closing dates (deadlines to buy crop insurance). Notice of the policyholder’s election may be provided over the phone with appropriate documentation of the call or using electronic methods followed by their confirmation of such election in writing (a signed, or e-signed, form) no later than July 15, 2020.

Production Reporting Date Extended
For the 2020 crop year, AIPs may accept production reports through the earlier of the acreage reporting date (ARD) or 30 days after the production reporting date (PRD) for crops insured under the Common Crop Insurance Policy Basic Provisions with a PRD of March 15, 2020, or later. Generally, the PRD for crops insured under the Common Crop Insurance Policy Basic Provisions is the earlier of the ARD or 45 days after the cancellation date.

Additional Time Given and Interest Deferred on Premium Payments, Written Payment Agreements
AIPs are authorized to provide additional time for policyholders to make payment of premium and administrative fees. Interest accrual on premium payments and administrative fees will be waived to the earliest of an additional 60 days from the scheduled payment due date or the termination date on policies with premium billing dates between March 1, 2020, and April 30, 2020. AIPs are also authorized to provide additional time for policyholders to make payment for Written Payment Agreements due between March 1, 2020, and April 30, 2020. Payments may be extended up to 60 days from the scheduled payment due date and considered a timely payment.

RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting crop insurance coverage for producers. Farmers with crop insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email).



Ag, Conservation, Wildlife Groups Unite to Advocate for Conservation Funding Support

Today, 76 leading farm, conservation and wildlife groups delivered a letter to Congress requesting full funding for conservation programs and technical assistance in fiscal year (FY) 2021 appropriations.

In the letter, the National Association of Conservation Districts (NACD), National Sustainable Agriculture Coalition (NSAC), National Farmers Union (NFU), National Wildlife Federation (NWF) and other signatories called upon House and Senate appropriators to maintain discretionary United States Department of Agriculture (USDA) conservation funding and reject any cuts to farm bill conservation programs through the FY21 appropriations process.

Farm bill conservation programs, including the Conservation Reserve Program (CRP), Conservation Stewardship Program (CSP), Environmental Quality Incentives Program (EQIP), Regional Conservation Partnership Program (RCPP) and Agricultural Conservation Easement Program (ACEP), play a vital role in helping farmers, ranchers and landowners keep their lands sustainable and profitable for generations to come. The letter asks lawmakers to maintain the funding for these programs mandated by the 2018 Farm Bill and urges appropriators to fund the Natural Resources Conservation Service (NRCS)’s Conservation Operations (CO) account at $840 million, a $10 million increase from FY20. This money facilitates NRCS operations outside of the mandatory farm bill programs.

“Voluntary, incentive-based, locally-led conservation delivery is crucial to responsible management and conservation of the nation’s natural resources,” NACD President Tim Palmer said. “These conservation programs help put more boots on the ground in local communities, where they’re best equipped to make knowledgeable decisions in cooperation with landowners for their individual landscapes.” 

"Farmers and ranchers work hard every day to conserve their land," said Eric Deeble, NSAC Policy Director. "Ensuring that they have the resources and support they need to keep their soil healthy, along with their livelihoods, should always be a priority for Congress." 

"As climate change presents significant financial and environmental challenges for family farmers and ranchers, farm bill conservation programs provide ever-critical support for on-farm mitigation and adaption efforts,” NFU President Rob Larew said. “For these essential programs to operate at full capacity, they must have adequate resources and staff behind them. We urge appropriators to ensure farmers have access to services and assistance they need by providing ample funding for the coming fiscal year."

“America’s farmers and agricultural producers have a leading role to play in restoring habitat and strengthening conservation outcomes,” NWF Director of Agriculture Policy Aviva Glaser said. “Now is the time for policymakers to redouble our commitments to agricultural conservation programs to help farmers reeling from the recent trade war and the ongoing COVID-19 outbreak.”

NACD, NSAC, NFU and NWF stand united with the more than 70 co-signed organizations in urging appropriators to protect funding for critical conservation programs and technical assistance in FY 2021.



CoBank Quarterly: Global Pandemic, Economic Hibernation Disorient Markets, Industries and Communities

COVID-19 has brought the U.S. economy to a screeching halt, ushering in a recession in the process. For most businesses, the sudden stop to the economy is more jolting than the financial crisis of 2008 and has forced hard, immediate decisions about employees and finances. According to a new Quarterly report from CoBank’s Knowledge Exchange, COVID-19 has also underscored the critically important nature of agriculture and other industries essential to rural America.

“This quarter will largely define the next year in terms of the economy and how severe the damage caused by the coronavirus will be,” said Dan Kowalski, vice president, Knowledge Exchange, CoBank. “Nearly everyone will be impacted to varying degrees and the pace of the recovery will be uneven. But the economy had been on good footing and it’s entirely possible that we can get back to reasonable strength within a few quarters.”

The U.S. grain sector remains stuck in a rut, with pressure on commodity prices, weakening basis for corn and soybeans in some markets, and export volatility likely over the next two to three months. Since 2020 began, corn prices have declined by 12% and soybeans prices have dropped by 7%.

While crop farming fundamentals remain challenging, ag retailers enter the 2020 growing season on relatively stable footing. Retailers are optimistic for a full agronomy season given pent-up demand for fertilizer and crop protection products following last year’s complicated and wet fall application season.

The U.S. ethanol complex is navigating through an extremely difficult operating environment exacerbated by the recent collapse in crude oil and gasoline prices and a virtual overnight evaporation of demand. Several large players have restructured or exited the business, with more expected to do so over the next three months.

The U.S. chicken industry entered 2020 with optimism largely driven by expectations for renewed exports to China. That focus swiftly changed to the domestic market in early March when the spread of the coronavirus dramatically shifted the U.S. market to at-home eating, boosting chicken demand. Chicken production grew 7.7% in the first two months of 2020.

The U.S. cattle complex has seen a swift and sharp decline in the last month following the drop in global equities and oil prices. Since mid-January, April live cattle futures have fallen by approximately 25%. The beef complex profit pool is shifting in favor of packers at the cost of lower feeding margins. The loss of restaurant and foodservice customers due to COVID-19 will test beef prices this spring.

China’s demand for U.S. pork has set export records, but it hasn’t led to strong prices or profit margins. While international demand has been significantly higher than last year, so has U.S. pork supply. Hog producers are expected to realize negative margins through April, before margins turn to positive territory this summer. To realize strong margins, producers will need strong export growth to continue.

Milk prices have fallen precipitously in recent weeks due to COVID-19. The seasonal increase in milk supplies with the spring flush was met with economic weakness in China and other countries, impacting dairy exports. School closings have impacted fluid milk consumption. Home stockpiling has provided some price support, but not enough to offset the losses related to food service.

Despite strong exports, cotton prices have sunk to new lows on fears of slower global economic growth. U.S. cotton exporters are optimistic of faster export pace following India’s announcement of lockdown into the first half of April, which may impair India’s cotton export pace. Meanwhile, rough rice futures surged to new highs, driven by a surge in retail rice sales and tighter global stocks.

U.S. specialty crop growers are fearing an even tighter labor situation unfolding this spring as processing of new H-2A visa applications in Mexico is impaired by COVID-19 complications. Specialty crops growers have benefited from the surge in produce sales at grocery stores but saw reduced exports due to logistical issues related to COVID-19.

Broad segments of the power and energy sectors are likely to realize falling revenues in Q2 2020 and possibly beyond. Electric utilities will suffer from weakening electricity consumption by the commercial and industrial sectors. Rural water systems will also face challenges during the economic downturn.

The full Quarterly report is available on cobank.com. Each CoBank Quarterly provides updates and an outlook for the Global and U.S. Economic Environment; U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Other Crops; Specialty Crops and Rural Infrastructure Industries.