Wednesday April 8 Ag News

Nebraska Cattlemen Board Address Black Swan Market Responses

Yesterday, the Nebraska Cattlemen Board of Directors unanimously approved a letter to the U.S. Department of Justice (DOJ) to identify and investigate any evidence of fraudulent business practices within the beef meatpacking industry.

"COVID-19's impact on the cattle market has reignited concerns that surfaced following the 2019 beef packing plant fire. These concerns continue to focus on extreme market deteriorations that repeatedly take place for the production segments of the beef industry and coincide with rapid increases in boxed beef values and waves of windfall margins for the packing/processing sector." Ken Herz, President - Nebraska Cattlemen

Nebraska Cattlemen understands and acknowledges there is a pending USDA investigation into the market reactions that took place after the August 2019 Holcomb, KS plant fire. We firmly believe next steps should be taken to address member concerns and we ask the DOJ to open their own investigation and expand the scope to include both the market aftermath of the Holcomb, KS fire and the similar, yet magnified, market response to the COVID-19 situation. Both events continue the undue financial burden for all cattle producers within the production side of the beef cattle industry.

Additionally, the Nebraska Cattlemen Board amended current policy and passed interim policy to increase competitiveness in fed cattle markets by increasing packer capacity and reinstituting good business practices by packers. This includes amending existing policy to strengthen language by mandating packers to purchase at least 50% of their weekly slaughter in the negotiated cash or negotiated grid market within specific delivery windows.

New interim policy doubles down on NC's ask to the Nebraska delegation for long term solutions to cattle producer profitability - by revamping the Risk Management Association Livestock Risk Protection program to eliminate limitations that discourage cattle producer participation and by modifying subsidy levels to attract increased participation by cattle producers.

In addition to these efforts led by NC, we support efforts led by Senator Deb Fischer to request
the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights hold a public hearing, in addition to asking Agriculture Secretary Sonny Perdue determine if there is any evidence of unfair practices and ensure the beef meatpacking industry is compliant with the Packers and Stockyards Act. 

We thank all of the federal delegation for their support urging the USDA to quickly implement relief for producers and rural communities included as part of the recent COVID-19 aid legislation and that the agency continue to provide all available support through their various programs and authorities.

To find additional NC action regarding extreme market volatility and COVID-19 response, visit www.nebraskacattlemen.org.



Sasse Urges CFTC to Fight Market Manipulation

U.S. Senator Ben Sasse, a staunch advocate for Nebraska farmers and ranchers, wrote to the Commodity Futures Trading Commission, urging them to review market volatility and increasing widening of boxed beef prices to live cattle prices. 

“Nebraskans are hustling to feed the world and it is important we have an open and transparent price discovery in the markets,” said Senator Sasse. “Our farmers and ranchers have grit. These Nebraskans have slogged through one disaster after another and now stare down a global pandemic. They deserve a market that is not unlawfully advantaged and the CFTC should monitor and enforce any potential violations.”

Full text of the letter is available below.

Dear Chairman Tarbert,

I write to urge the Commodity Futures Trading Commission (CFTC) to review the market volatility and increasing widening of boxed beef prices to live cattle prices since the beginning of February 2020.  We are all watching with concern the unprecedented economic condition and the effect the global pandemic of COVID-19 is having on the entire market.  However, a CFTC examination of these particular cattle and beef markets would bring comfort and stability to a market that experienced a volatile 2019 due to natural disasters and issues out of farmers and ranchers control.

As you recall, Nebraska experienced a “bomb-cyclone” in March of 2019 causing major losses for farmers and ranchers and then a fire at a Kansas beef processing facility in August 2019 causing considerable disruption to the cattle industry.  Now the global pandemic of COVID-19 has caused an adjustment to retail, consumer and international purchasing of all commodities - especially beef.  Economic reports have shown a 25 percent increase in boxed beef prices over a seven-day period, meanwhile, the United States Department of Agriculture Livestock Market Reporting data showed a slight decrease in Nebraska weighted average live cattle prices over the same timeframe.

The United States Department of Agriculture Economic Research Service Meat Price Spread data provides average price values and the difference of these values at the farm, wholesale, and retail stages of production.  This data from March 11, 2020, shows farm to wholesale at 115.7 cents per retail pound in September 2019 and 55.7 cents per retail pound in February 2020.  The farmers share during this timeframe went from 37.2% in September 2019 to 43.3% in February 2020.

It is important that the CFTC to deter market manipulation and allow for open and transparent price discovery in the commodity markets.  It is also important that the CFTC conduct examinations where necessary to ensure fairness so market participants cannot take unlawful advantage of global conditions.  The commodity market must work and must retain integrity.  At this time, it is vital that the CFTC remain vigilant to monitor and surveil any market abuse and take swift and strong enforcement against violators. 

Thank you for your immediate attention and for the consideration of the requests made.

Sincerely,
Ben Sasse
United States Senator



USDA Will Expand Holcomb Fire Investigation to COVID Market Disruption

Today the U.S. Department of Agriculture decided that they will expand the investigation into pricing margins that was launched following the Holcomb, Kansas fire to include potential unfair market practices during the COVID-19 crisis. U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee yesterday sent a letter calling for this exact action by USDA.

"After hearing from so many Nebraskans about potential unfair practices in the beef packing industry, I knew something needed to be done. I thank USDA for taking this action I requested on behalf of Nebraska’s cattle producers and feeders. Expanding the scope of this investigation to cover COVID market disruption is the first step towards ensuring fairness throughout the beef supply chain,” said Senator Fischer.

COVID is having a major impact on cattle operations. Americans are purchasing more beef products at grocery stores and that is resulting in another round of windfall profits for meatpackers. However, cattle producers are taking price losses that threaten the viability of their businesses. Senator Fischer is taking a leading role in Congress to mitigate these issues. Read more about her efforts here.



NCBA Commends Secretary Perdue For Swift Action In Expanding Investigation Into Cattle Markets

NCBA President Marty Smith today released the following statement on United States Department of Agriculture (USDA) Secretary Sonny Perdue’s announcement of expanding the agency's investigation into cattle markets:

“I would like to thank President Donald Trump and Agriculture Secretary Sonny Perdue for their quick response to NCBA’s request to expand the agency’s investigation into cattle markets. Secretary Perdue’s decision to examine market reactions surrounding the Holcomb fire and the spread of COVID-19 in the United States, will help restore the confidence of cattle producers in the market. We also look forward to the agency’s recommendations about improvements the industry can make to its markets, improvements that will ensure we have the fair and functioning markets that are so vital to cattle producers.”



Terminating Cover Crops This Spring
Amy Timmerman – NE Extension Educator

As temperatures warm this spring, cover crop termination is on the to-do list for some Iowa fields.   Killing cover crops with herbicides is the most common termination method. The effectiveness of herbicides at terminating a cover crop depends primarily on three things: 
 1.    Cover crop species and growth stage
 2.    Herbicide and rate used
 3.    Environment

The cool and fluctuating temperatures encountered in spring often make terminating cover crops challenging. Farmers are limited to a few products like paraquat (Gramoxone; group 22), glufosinate (Liberty; group 10), or glyphosate (Roundup; group 9) for cover crop termination. Glyphosate is the most consistent option for termination, especially as cover crops increase in size. The group 1 herbicides (e.g. clethodim, fluazifop, etc.) do not provide effective consistent control of cereal rye. If cereal rye or other grass species are seeded with a legume, inclusion of 2,4-D or dicamba with glyphosate will improve consistency of control. This addition can also be helpful if broadleaf winter annuals are present. 

In a study encompassing eight site-years across five states, treatments containing glyphosate provided the most consistent cereal rye control. Cereal rye ranged from 5-54 inches tall at termination in the experiments. While control of cereal rye did not differ statistically between most paraquat and glyphosate treatments, paraquat-based treatments were much less consistent than glyphosate-based treatments. Glufosinate treatments were less effective and less consistent than glyphosate treatments. While paraquat can provide acceptable control in some situations, neither glyphosate alternative (paraquat, glufosinate) provides as consistent control as glyphosate under the cool and variable spring conditions. Dicamba combinations with the three burndown herbicides provided similar results to 2,4-D combinations.

Vegetative growth in rye requires temperatures of at least 38 F. While air temperatures may be favorable some days, cool  soil temperatures can slow growth. Herbicides are most effective on actively growing plants; thus, very early spring termination treatments may provide less than complete control. Leaving a small check strip is a simple and easy way to see if the cover crop is dying following termination.

Iowa State University researchers generally recommend terminating the cover crop with herbicide 10 -14 days prior to planting corn to protect yield; however, that time frame is less critical for soybeans. Waiting to  terminate  until after your crop is planted, especially in non-GMO corn, can be risky. Termination options are more limited, and the cover crop can quickly become an uncontrollable weed in non-GMO crops. Additionally, it is important to check with your crop insurance agent for any specific cover crop requirements that they may have prior to planting corn or soybeans.

Always look at the herbicide labels for directions and any restrictions for the subsequent crop. A quick and easy place to look up herbicide labels is  www.cdms.net  or  www.greenbook.net.



Nebraska Corn urges farmers to be prepared as the growing season approaches

Farming has always been an unpredictable business. Each year, factors like weather conditions, market price fluctuations and input prices can all lead to uncertainty. This year is shaping up to be no exception as the world grapples with COVID-19. This virus is particularly worrisome, as it spreads easily and symptoms can vary drastically, if infected.

Nebraska farmers have always been #NebraskaStrong but when times get tough, the Nebraska Corn Board and the Nebraska Corn Growers Association recommend all producers have a plan in place to help overcome any unexpected obstacles in their operations. No one can learn the nuances of a farmer’s operation overnight, so being prepared can provide peace of mind in case something happens and can also help reduce stress for all involved.

Nebraska Corn has developed a checklist to help farmers establish their own management plan during challenging or busy times. All farmers are encouraged to take a few minutes to write their own plans and put them where they can be easily found. Copies can also be shared with trusted neighbors or friends.

Protect Yourself
§  Always Take A Second for Safety, an extra second could save your life
§  Wear proper PPE (personal protective equipment)
§  Drink plenty of water and get enough rest
§  Make it a point to check in with family and loved ones regularly, even when spring gets hectic
§  Practice gratitude
§  Take time for yourself, even if it’s just a quick walk around the farm
§  Monitor yourself for signs of stress, if you notice something, say something
§  Follow all safety guidelines for equipment

Gather General Farm Information
§  Hired help contact info and primary job responsibilities
§  Typical machinery dealership and/or repair services used
§  Crop advisor and/or farm manager names and phone numbers
§  Crop insurance agent name and phone number
§  Ag lender name and phone number

Field Plans
§  Field names and locations
  o   Highlight in a plat book, if possible
  o   Note where the field entrance is and which side is best to start work
§  Intended crop
§  Seed varieties, where is the seed located, who is your seed dealer
§  Planting rates
§  What still needs to be done? Tillage, spring fertilizer, burndown
§  Who is your retailer for chemical and fertilizer?
§  Have spring chemical and nitrogen programs been finalized?

Stored Crop Plans
§  Which bins may need to be watched more closely than others?
§  Do you have any upcoming delivery contacts? With whom?
§  Does anyone help market your crops?

Livestock Plans
§  Do you still have cows to calve? If so, list calving routine and processing procedures
§  Which pastures do you have cows at, where do cows need to go when the grass greens up?
§  Are there water needs?
§  Hay storage? Mineral and protein tubs?
§  Do you have feed brought in? Who is your supplier, are the deliveries automatic?
§  What are your rations?
§  Who is your vet?
§  Hog barn routine? Clean out procedures?
§  Who is your contact for who you grow for?
§  Where do you get your feed? Is it automatic?
§  Is there anyone you have come help for things like load out?
§  Who is your vet?

By carefully going through this checklist, farmers will be well-prepared for business as usual during difficult times. For more helpful information on COVID-19, visit the Nebraska Department of Agriculture (https://nda.nebraska.gov/COVID-19/index.html) or the National Corn Growers Association (https://www.ncga.com/key-issues/other-topics/covid-19).



Nebraska Corn Board partners with Lexington Ampride to offer higher ethanol blends

Motorists living near or traveling through Lexington now have opportunities to refuel their vehicles with higher blends of ethanol. Through an infrastructure development program, the Nebraska Corn Board (NCB) provided Country Partners Cooperative with grant dollars to convert four existing fuel pumps into blender pumps at their Lexington Ampride location in order to offer higher ethanol blends. The station now offers E20 (a 20% ethanol blend), E30 (a 30% ethanol blend) and E85 (an 85% ethanol blend). These blends can be used in vehicles designated as flex fuel vehicles.

“We’re always excited to be able to work with local fuel retailers to help enhance ethanol offerings across the state,” said John Greer, District 2 Director of NCB and farmer from Edgar. “We, in the corn industry, understand the benefits of using cleaner-burning, renewable fuels, but we also know these fuels must be available to consumers in order to help them understand. Not only can we clean up our air with these high performance, locally produced fuels, ethanol often saves consumers money.”

“We’re very excited to be able to provide our customers with a choice when they pull up to the pump,” said Scott Haller, vice president of energy with Country Partners Cooperative. “Not only are we doing our part for the environment and helping consumers save money, but we’re also supporting our local corn farmers. That’s good for Nebraska!”

Lexington Ampride is located at 2700 Plum Creek Parkway in Lexington (off the west bound lane of I-80 north). To find all local fuel retailers offering higher ethanol blends, visit https://getbiofuel.com/.

Each year, NCB provides grant funds to fuel retailers wanting to upgrade to blender pumps. For more information on the program, contact NCB by emailing NCB.info@nebraska.gov.



Iowa Pork Builds Industry Leadership

The Iowa Pork Leadership Academy (IPLA) welcomes 13 members to its 2020 class. IPLA develops leadership skills in Iowa's pork producers and is organized by the Iowa Pork Producers Association (IPPA). Those selected for the class have indicated an interest in becoming future leaders in the pork industry at the local, state, and national levels. They may also use their new leadership skills in their local communities.

"IPLA is for men and women who want to contribute to a better future for Iowa's pig farmers by connecting with their communities, and supporting the long-term profitability of the pork industry in Iowa," said Emma Lasco, IPPA's director of producer outreach.

The IPLA members identified several issues ahead for all pork producers, no matter their location or size. Some of these issues include biosecurity, animal welfare, and water quality. "During the year they spend as part of the academy, they will learn about these issues, how to speak about them confidently, and make connections in all corners of Iowa and the country," Lasco said.

During the group's first meeting this year, they identified their individual strengths, were coached on media communications, and learned about the work of the Iowa Pork Producers Association (IPPA) and the National Pork Board.

At their second meeting in early March, they attended a leadership workshop, learned about the National Pork Producers Council, and met with Iowa legislators, Iowa Secretary of Agriculture Mike Naig, and Lt. Governor Adam Gregg.

The class has two additional upcoming meetings. They are hoping to travel to Washington, D.C. and California when the COVID-19 situation dissipates and travel opportunities return to normal.

Members of the IPLA 2020 class are (listed alphabetically by county): Adams County - Amanda Winslow, Prescott; Allamakee County - Rose Onsgard, Dorchester; Calhoun County - Lance Heuser, Manson; Delaware County - Ben McDonald, Hopkinton; Jackson County - Austin Lane, Prescott.

Also, Kossuth County - Cory Thilges, Lone Rock; Linn County - Doug Rice, Mount Vernon; Lyon County - Janae Metzger, Larchwood; Polk County - Garrett Gourley, Des Moines; Story County - Jake Sterle, Ames; Washington County - Matt Romoser, Keota; and Winneshiek County, Jessica Lensing.'' Sterle's spot in the class is made possible by the Al Christian Fellowship for a student attending Iowa State University.



80 COVID-19 Cases Connected to Smithfield Foods Plant

South Dakota officials say over 80 employees at one Sioux Falls business have tested positive for COVID-19. State Health Secretary Kim Malsam-Rysdon said Wednesday that over 80 employees at Smithfield Foods have been diagnosed with the disease.

Malsam-Rysdon said Smithfield is one of the businesses the Department of Health has identified as a "hot spot." She said health officials are working closely with the business to make sure they are following the proper guidelines.

Smithfield has posted guidelines to its website regarding the company's policies regarding COVID-19.



CHS Reports $125.4 Million in Second Quarter Net Income

CHS Inc., the nation's leading agribusiness cooperative, today reported net income of $125.4 million for the second quarter of fiscal year 2020 that ended Feb. 29, 2020. This compares to net income of $248.8 million in the second quarter of fiscal year 2019.

The company reported revenues of $6.6 billion for the second quarter of fiscal year 2020 compared to revenues of $6.5 billion for the second quarter of fiscal year 2019. In the first six months of fiscal year 2020, CHS reported net income of $303.3 million compared to net income of $596.3 million in the first six months of fiscal year 2019.

"Today our top focus is on our core value of safety—including the health and safety of our employees, farmers, our owners, our customers, our local cooperatives and the communities where we live and work around the world—as we all navigate the impact of COVID-19," said Jay Debertin, president and CEO of CHS Inc. "The investments we've made in our infrastructure connect farmers and local cooperatives to the inputs and services they need during this busy spring season. This crop needs to get planted. Farmers will get this crop planted. And we will be there to be part of it as we support them and our communities."

Second Quarter Fiscal 2020 Business Segment Results
The following segment results were reported for the second quarter of fiscal year 2020 as compared to the second quarter of fiscal year 2019.

Energy
Pretax earnings of $138.9 million in the second quarter of fiscal year 2020 compared to $306.6 million for the second quarter of fiscal year 2019 reflect:
-    Less advantageous market conditions in our refined fuels business that drove lower margins, due to a combination of lower crack spreads and decreased crude oil differentials on heavy Canadian crude oil, which is processed by our refineries.
-    Recognition of a gain contingency credit during the second quarter of fiscal year 2019 that did not recur during fiscal year 2020.

Ag
Pretax loss of $20.8 million in second quarter of fiscal year 2020 compared to pretax loss of $62.4 million in the second quarter of fiscal year 2019 reflects:
-    A strong wheat crop and improved weather conditions that contributed to improved results.
-    Poor weather conditions in fiscal year 2019 and ongoing global trade tensions that continued to negatively impact volumes and margins within agricultural markets.

Nitrogen Production
Pretax earnings of $5.7 million in the second quarter of fiscal year 2020 compared to pretax earnings of $10.7 million in the second quarter of fiscal year 2019 reflect:
-    Lower equity income from our investment in CF Nitrogen due to decreased market pricing of urea and urea ammonium nitrate, which are produced and sold by CF Nitrogen, of which CHS has partial ownership.

Corporate and Other
Pretax earnings of $4.0 million in the second quarter of fiscal year 2020 compared to pretax earnings of $7.0 million in the second quarter of fiscal year 2019 reflect:
-    Non-operating gains recognized during the second quarter of fiscal year 2019 that did not recur in the second quarter of fiscal year 2020.



Most Fertilizer Prices Move Higher, Remain in Narrow Range

Retail fertilizer prices were mostly higher in the first week of April 2020, according to prices tracked by DTN. However, prices remain in a familiar range from slightly lower to slighty higher.

Six fertilizers were higher in price compared to last month with none of the six up a significant amount, which DTN considers a price move of 5% or more. Urea had a $14/ton price increase compared to the same time last month, the largest jump of the eight major fertilizers tracked by DTN. Its average price was $383/ton.

Potash has an average price of $370/ton, up $1; 10-34-0 $467/ton, up $1; anhydrous $492/ton, up $2; UAN28 $235/ton, up fractionally; and UAN32 $278/ton, up $1.

The remaining two fertilizers had lower prices compared to a month earlier. Just like the higher priced fertilizer, these fertilizers did not have any large price movement. DAP had an average price of $408/ton, up $1, while MAP was $432/ton, down fractionally.

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

Retail fertilizers are now all lower in price from a year ago. DAP is 20% lower, MAP is 19% less expensive, anhydrous is 18% lower, UAN28 is 14% less expensive, UAN32 is 13% lower, urea is 5% less expensive, potash is 4% lower and 10-34-0 is 2% less expensive from last year at this time.



Weekly Ethanol Production for 4/3/2020

 This morning, the EIA released its Weekly Petroleum Status Report for the week ending April 3, which reflected the deepening impact on the ethanol industry from the social-distancing and stay-at-home restrictions associated with COVID-19.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production plunged 20.0%, or 168,000 barrels per day (b/d), to 672,000 b/d—the lowest level since the EIA began reporting ethanol production statistics in 2010. Production was 33% below the same week in 2019. The four-week average ethanol production rate fell 9.5% to 888,000 b/d, equivalent to an annualized rate of 13.61 billion gallons.

Ethanol stocks surged 5.3% to a record 27.1 million barrels, eclipsing last week’s previous high. Inventories shifted higher across all regions.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, collapsed to 5.065 million b/d (77.65 bg annualized), which was 23.9% lower than the prior week and 48.3% lower than a year ago. It was the smallest volume since the beginning of EIA’s dataset in 1991.

Refiner/blender net inputs of ethanol slumped to 502,000 b/d, equivalent to only 7.70 bg annualized, which was 16.5% below the prior week and 45.4% below the year-earlier level. It was the lowest level since the EIA began reporting weekly ethanol usage in 2010.

There were no imports of ethanol recorded for the fourth straight week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of February 2020.)




Tenth Circuit Denies Refiners’ Rehearing Request

In welcome news to corn farmers, the U.S. Court of Appeals for the Tenth Circuit yesterday denied a request for a rehearing of a recent ruling that struck down certain small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS).

On January 24, a panel of Tenth Circuit judges unanimously ruled that the Environmental Protection Agency (EPA) had vastly exceeded its authority in granting exemptions from 2016 and 2017 RFS requirements to three refineries.

The National Corn Growers Association, along with the Renewable Fuels Association, American Coalition for Ethanol and National Farmers Union, brought the challenge against EPA in May 2018 in response to the massive demand destruction caused by the Agency’s illegal and indiscriminate use of SREs.

With the Court’s denial of refiners’ appeal request, NCGA strongly urges EPA to act quickly to appropriately apply the Tenth Circuit decision nationwide and deny pending SREs.



R-CALF USA to Appeal Ruling That Beef Checkoff is Being Operated Constitutionally; Ruling Affirms Progress Has Been Made in Reforming Checkoff

R-CALF USA, through its attorneys, will appeal a recent U.S. District Court ruling that the USDA's Beef Checkoff, as currently operated, does not violate the First Amendment by compelling independent American ranchers to fund the speech of multinational meatpackers.

While not recognizing constitutional violations that persist, the March 27 ruling does affirm the finding of the magistrate judge in the case that the government had been operating the Beef Checkoff in a manner that violated the free speech rights of ranchers for 30 years before R-CALF USA filed suit to challenge its administration of the program. This appeal is to the Court of Appeals for the Ninth Circuit.

The Beef Checkoff is a federal tax that compels producers to pay $1 per head every time cattle are sold, half of which is used to fund the advertisements of private state beef councils, like the Montana Beef Council. The Montana Beef Council is a private corporation whose members include representatives of the largest multinational beef packers, and the USDA has admitted as much over the course of this litigation. Public Justice is lead counsel in this constitutional challenge.

A key issue in the case is whether the speech of the 15 state beef checkoff councils, which cattle producers finance through their mandatory checkoff dollars, is private speech or government speech. R-CALF USA's position is that the 15 state beef councils are private corporations expressing private speech and compelling cattle producers to fund that speech is unconstitutional.

The group is challenging this practice on the grounds that the First Amendment prohibits the government from compelling cattle producers and other citizens to subsidize private speech.

"As disappointed as we are with the district court's decision, it's worth appreciating the degree to which this case has already exposed the corrupt manner in which the Checkoff and the state beef councils actually operate," said David Muraskin, a Senior Attorney with Public Justice's Food Project and lead counsel in R-CALF USA's challenge.

"We are confident that the Ninth Circuit will recognize that the government continues to compel independent ranchers to pay for speech in support of a handful of corporations, just as the district court and magistrate judge acknowledged the government was doing before R-CALF USA acted," Muraskin added.

The remedy to this constitutional violation, according to R-CALF USA, is to allow producers in those 15 states to choose whether or not to fund private corporations. If producers choose not to fund their private state councils, their money should go to the government to fund its work on behalf of ranchers, which the Supreme Court has held is constitutional.

This is particularly important as discovery in the case revealed the state beef councils send checkoff money to third-party entities that are likewise not publicly accountable and use the money to support the consolidation of the cattle and beef industry, another outcome R-CALF USA opposes. In 2018, the Texas Beef Council, for instance, gave $2 million to the National Cattlemen's Beef Association's (NCBA's) private Federation of State Beef Councils and U.S. Meat Export Federation. Other councils have donated to political advocacy groups like the Wisconsin Livestock Identification Initiative.

"This remains one of our principal concerns. The state beef councils are funneling millions of mandatory checkoff dollars to the lobbying organization the NCBA to purchase board seats in the NCBA's federation division of its organization. Independent producers who object to the NCBA's lobbying efforts against Mandatory Country-of-Origin Labeling and needed market structure reforms cannot hold anyone accountable for the NCBA's use of that money," said R-CALF USA Bill Bullard.



2020 Stand Up for Grain Safety Week raises awareness about grain handling and storage hazards

The National Grain and Feed Association (NGFA) and the Occupational Safety and Health Administration (OSHA) are hosting a major safety outreach effort – the “Stand Up for Grain Safety Week” – from April 13-17, 2020, to help raise awareness about grain handling and storage hazards and ways to prevent them, provide education and training, and convey safety best practices.

Throughout the Stand Up for Grain Safety Week, companies may participate by providing a focused activity and/or toolbox talk for employees on any hazard-prevention measure. Featured topics that NGFA and its safety partners — the Grain Elevator and Processing Society (GEAPS) and the Grain Handling Safety Council (GHSC) — will highlight throughout the week include: Preventive maintenance; machine/conveyor guarding; grain bin entry; and slips, trips and falls.

This year’s event also will be supplemented with safety-related information to protect employees during the COVID-19 pandemic, including a new NGFA Safety Tip Sheet and other resources that can be found on ngfa.org/covid-19.

 “As the food and agricultural industry continues to work to provide essential human and animal food during the pandemic — during which grain, feed and processing facility employees have been deemed part of the nation’s ‘critical essential infrastructure’ — it may be more important than ever to bring awareness and practicability to best safety practices for grain handlers to maintain and protect our robust workforce,” said NGFA Vice President of Safety and Regulatory Affairs Jess McCluer. “We encourage all companies to participate in this effort and show their continued commitment to the health and safety of their employees.”

Participating companies are encouraged to fill out information about their safety activities on standup4grainsafety.org, which provides training materials and a certificate of participation. Participants can share safety success stories on social media with the hashtag: #StandUp4GrainSafety.

The campaign is hosted under the auspices of the NGFA-OSHA Alliance in collaboration with the GEAPS and GHSC.

The NGFA has several resources, including Safety Tip Sheets, guidance documents and training videos, for companies wishing to become involved in the campaign on ngfa.org/safety.



SSGA leads way in delaying Japan phytosanitary certificate

In lieu of person-to-person meetings in Washington, D.C., the Specialty Soya and Grains Alliance (SSGA) board used technology to hold their board meeting and visit various federal regulators April 6-7.

SSGA met with U.S. Department of Agriculture (USDA) staff in the Foreign Agricultural Service (FAS), Federal Grain Inspection Service (FGIS) and Animal and Plant Health Inspection Service (APHIS) departments to discuss SSGA’s programs as well as Japanese market access issues. During these meetings, officials announced they received official communication from the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) confirming the delay of the Japan phytosanitary requirement set to be implemented June 1.

In the past few months, SSGA led the way by documenting examples from its member companies to USDA about the difficulties of certifying under current practices and complying with Japan’s request.

“This move gives us the breathing room we need to work with USDA to find a cost-effective, fair way to create these new certificates,” says Todd Sinner, chair of SSGA’s food grade soya action team and partner at SB&B Foods, Inc. “This June 1 deadline was really an April deadline because our companies were starting to do as directed and fulfill the phyto requirement. It’s too big of a risk – if we get a rejection it can cost thousands in losses.”

Although Japan has not announced new dates for the implementation, SSGA will continue to pursue long-term solutions with APHIS, other agencies and industry partners from across the spectrum of U.S. agriculture.

“The whole industry needs to pull together,” says SSGA Executive Director Eric Wenberg. “Passing the regulatory or administrative reform in the United States needed to comply with Japan’s requirement will take a lot of effort. We can pursue solutions together. Identity-preserved (IP) field crop shipments are low-risk inputs to food manufacturing and we need to send them to customers with as much efficiency as possible.”

To get a phytosanitary certificate for these shipments, a sample inspection from FGIS officials would be necessary, which would incur fees from the official traveling, often to rural and remote areas, to take the sample; but also indirect costs and inefficiencies, such as managing the phyto certificates, missing scheduled shipments waiting on a sample to be taken and infrastructure updates.

“Our customers trust us and are satisfied with the current inspections and certifications we go through to ensure they’re receiving the purest product,” says Curt Petrich, SSGA chair and president of HC International in Fargo, N.D. “It’s important that SSGA works for its members to either exempt IP crops from this inspection requirement or develop solutions with APHIS to improve the process of obtaining a phytosanitary certificate.

SSGA’s meetings with FAS officials detailed SSGA’s use of the Agricultural Trade Promotion (ATP) grant funding and SSGA’s recent additional attention to expanding market development opportunities for specialty grains.

“We had three great meetings with various officials that helped us plan our next steps. We’ve realized the potential change here is the process of obtaining a phytosanitary certificate, not about the need for the certificate,” Petrich says. “Our next step is to give Japan a suggested date for the delay. The IP industry needs a delay of 12 to 18 months to implement the infrastructure to accommodate their request. It’s not time to quiet the conversation.”



Zoetis Acquires Performance Livestock Analytics

Zoetis today announced the acquisition of Performance Livestock Analytics to enhance its animal health solutions across the continuum of care for beef producers. The addition of Performance Livestock Analytics, a technology company that simplifies data and analytics for the livestock industry, will help Zoetis to accelerate progress in precision livestock farming and improve sustainability of producers’ operations. Financial terms of the transaction are not being disclosed.

Performance Livestock Analytics was the first company to offer cloud-based data management to beef producers. Today, its innovative Performance Beef solution combines cloud-based technology with automated on-farm data collection to provide powerful analytics that help feedlot managers make better decisions across financials, nutrition and animal health. Simplifying feeding to financials, Performance Beef makes it easy to change rations; create accurate invoices and closeout reports; and analyze trends in feed efficiencies, costs and performance. New animal health inputs can automatically be captured at the chute, providing insights into individual animal performance and health protocol compliance. Cattle Krush is a complementary tool to Performance Beef, using real-time market data to give producers instant breakeven, market analytics and profit alerts to help in buying and selling cattle.

“The addition of Performance Livestock Analytics is an important part of our strategy to bring precision livestock farming to our customers to help improve the health of their animals and the sustainability of their operations,” said Mike McFarland, DVM, DABVP, Executive Vice President and Group President of Accelerated Growth Businesses for Zoetis. “The team at Performance Livestock Analytics has successfully applied Silicon Valley technology learnings to the needs of livestock producers, and we are thrilled to have them join us at Zoetis to continue leading the way in digital and data analytics for livestock.”

“Our digital platform changes how livestock producers manage their business. Real-time, accurate data allows producers to make better management decisions to help boost efficiency and profitability,” said Dane Kuper, co-founder and CEO, Performance Livestock Analytics. “Both our culture and vision align well with Zoetis. Now as part of Zoetis, we will be better positioned to provide practical technology solutions to improve livestock health and sustainability for our customers.”

Precision livestock farming can help improve producers’ decision-making, right down to the level of each individual animal, to maximize health and well-being, performance, and efficiency across livestock operations. Digital platforms and technology can help integrate information that a producer has available from multiple sources and turn that information into useful insights that inform health and management decisions. On-farm data also may be meaningful if shared throughout the supply chain in response to consumers’ growing interest in how food-producing animals are raised.