Monday May 4 Crop Progress + Ag News

CROP PROGRESS AND CONDITION

For the week ending May 3, 2020, there were 6.2 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 7 percent very short, 22 short, 69 adequate, and 2 surplus. Subsoil moisture supplies rated 4 percent very short, 13 short, 81 adequate, and 2 surplus.

Field Crops Report:
Corn planted was 61 percent, well ahead of 30 last year and 38 for the five-year average. Emerged was 9 percent, ahead of 1 last year, and near 5 average.

Soybeans planted was 32 percent, well ahead of 11 last year and 10 average.

Winter wheat condition rated 2 percent very poor, 8 poor, 23 fair, 60 good, and 7 excellent.

Sorghum planted was 7 percent, ahead of 2 last year, and near 4 average.

Oats planted was 87 percent, ahead of 69 last year, and near 84 average. Emerged was 56 percent, well ahead of 30 last year, but near 58 average.

Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 3 poor, 24 fair, 66 good, and 5 excellent.



Iowa Crop Progress & Condition Report

There were 6.1 days suitable for field work during the week ending May 3, 2020, according to the USDA, National Agricultural Statistics Service. Warm, dry weather allowed Iowa farmers to advance planting well ahead of normal.

Topsoil moisture levels rated 3 percent very short, 16 percent short, 78 percent adequate and 3 percent surplus. Subsoil moisture levels rated 2 percent very short, 8 percent short, 85 percent adequate and 5 percent surplus.

Iowa farmers planted 39 percent of the expected corn crop during the week ending May 3. Although great progress was made, in 2015 Iowa farmers were able to plant 54 percent of their corn crop during the same week. This is the first time since 2010 that at least three-quarters of the corn crop has been in the ground by May 3.

Forty-six percent of the soybean crop has been planted, a full month ahead of last year and over two weeks ahead of the five-year average. This is the highest proportion of the soybean crop planted by May 3 since records began in 1974. Farmers were able to plant over one-third of the expected soybean crop during the week ending May 3.

Only 6 percent of Iowa’s expected oat crop remains to be planted, with 54 percent of the oat crop emerged.

Pasture condition rated 65 percent good to excellent. Pastures and hay fields are greening up. Cattle movement to pastures increased this week.



US Corn Planting Passes Halfway Mark

USDA NASS' Crop Progress report on Monday was a tale of two planting situations, with row-crop planting jumping ahead of the five-year average and spring wheat planting continuing to lag behind the normal pace.

Corn planting progress jumped ahead another 24 percentage points last week to reach 51% complete as of Sunday, May 3. That was 30 percentage points ahead of last year at the same time and 12 percentage points ahead of the five-year average of 39%.  Corn emerged was 8%, ahead of the 5% last year but slightly behind the average pace of 10%.

Soybean planting also picked up speed last week, moving ahead 15 percentage points to reach 23% complete as of Sunday. That is well ahead of 5% last year and 12 percentage points ahead of the five-year average of 11%. 

In contrast to row-crop planting, spring wheat planting continued to run well behind its average pace. Twenty-nine percent of spring wheat was planted as of Sunday, ahead of 19% last year but still 14 percentage points behind the five-year average of 43%.  Six percent of the spring wheat crop had emerged, down from the five-year average of 16%.

Winter wheat conditions stabilized after two previous weeks of dropping. NASS estimated that 55% of the nation's winter wheat was rated in good-to-excellent condition, up 1 percentage point from 54% the previous week. That followed a 3-percentage-point drop in the previous week's report. The current good-to-excellent rating is below 64% a year ago.  Winter wheat was 21% headed as of Sunday versus a five-year average of 25%.

Sorghum was 22% planted, slightly ahead of 21% last year but behind the five-year average of 26%. Oats were 67% planted, compared to 48% last year and a 67% average. Oats emergence was at 44%, compared to 35% last year and a 47% average. Barley was 41% planted, ahead of 34% last year, but well behind the five-year average of 50%.

Cotton planting was 18% complete, compared to 16% last year and a 17% average. Rice was 49% planted, ahead of 45% last year but behind the average of 64%. Rice emerged was 32%, behind the average of 45%.

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Cargill in Schuyler to Temporarily Close
Jon Nash, Cargill Protein – North America Lead

“As we continue to prioritize the health and safety of Cargill employees, we have decided to temporarily idle our Schuyler protein facility. This was a difficult decision for our team as we operate an essential service, but our values are guiding our actions. Our focus now is continuing to keep our employees safe and getting our facility back to normal operations as soon as we can.

This was a difficult decision for our team who are operating an essential service and are committed to delivering food for local families and access to markets for farmers and ranchers. We care deeply about our employees and their safety. They are everyday heroes on the front lines of our food system.

To prevent food waste, we will process nearly 8 million meals-worth of protein currently in our facility as quickly as possible. We greatly appreciate our employees who are working to complete this effort. 

While this location is idled and we adapt to operating during a pandemic, our work doesn’t stop. Cargill provides an essential service to the world—providing the ingredients, feed and food that nourishes people and animals. We are working with farmers and ranchers, our customers and our employees to supply food in this time of crisis and keep markets moving.”

Background details:
Cargill’s Schuyler, Neb., protein facility will begin the process to temporarily idle effective May 4. We are taking this step out of an abundance of caution and consistent with our commitment to prioritizing employee health as our local workforce deals with the community-wide impacts of COVID-19. As we work in partnership with the union, our employees will be paid the 36 hours per week as outlined in our collective agreement.

Cargill is encouraging employees to be tested. We have also stressed the importance of social distancing for those across the community who have been impacted by the virus. We have encouraged any employees who are sick or have been with anyone with COVID-19 in the last 14 days to stay home. While operational, Cargill offered up to 80 hours of additional paid leave related to COVID-19.

We are working closely with local departments of health and medical officials to ensure appropriate prevention, testing, cleaning and quarantine protocols are followed within our facilities. For several weeks, we have taken extra steps to focus on safety and remain at normal operations – including temporary wage increases and bonuses for our employees who are on the front lines of the food system. Over the past two months, we have also implemented additional safety measures like temperature testing, enhanced cleaning and sanitizing, face coverings, screening between employee stations, prohibiting visitors, adopting social distancing practices where possible and offering staggered breaks and shift flexibility. These measures will remain in place when we resume full operation.

As we prioritize the health of our workers and collaborate with health officials, we are tentatively working toward the week of May 18 to resume operation.



Tyson Shutters Pork Processing Plant in Madison, Nebraska

Tyson Foods is suspending operations at its pork packing plant in Madison, Neb., the company announced Monday. The northeast Nebraska plant was running at a reduced capacity on Friday and Saturday while testing its workforce for COVID-19.

The plant is working with a third-party medical contractor to test all team members at the Madison plant. In the meantime, staff are performing a deep clean and sanitization of the facility during its closure. The plant will be working with the Nebraska National Guard, and state and county health officials to make sure the plant meets or exceeds state and national guidelines.

The Madison pork plant harvests 8,000 pigs a day and produces 10.6 million pounds of pork every week. The plant covers employs about 1,200 people.



Lincoln Premium Poultry Mournes Loss of Employee

Lincoln Premium Poultry shared that they learned today of the passing of an employee due an underlying health condition that was made worse by COVID-19. “We are heartbroken to learn that we lost a team member and are working to assist the family as they sort through the next steps,” said Jessica Kolterman, Director of Corporate and External Affairs.  The employee had not been at work since April 17, 2020 after asking to self-quarantine due to an underlying health issue.  “The company honored the request and only learned last week on Thursday that the employee had been diagnosed with the virus,” said Kolterman, “Our thoughts and prayers are with the family during this difficult time and we ask that the press respects their privacy as they mourn the loss, as well as the privacy of LPP team members who have lost a colleague.”

Since reporting to the public one week ago, Lincoln Premium Poultry reported an additional 13 additional cases of COVID-19 over the past week, which brings the company total to 28 cases. As of today the company has also registered 39 negative cases among employees.

“The reality is that the virus is throughout our communities, which is why it is so important to social distance at home as well as at our facilities.” said Kolterman, “Regardless, we will continue to work diligently to protect our team members in every way we can.”

Lincoln Premium Poultry has provided the opportunity for individuals over 65 to self-isolate at home, with pay.  Individuals who test positive as well as individuals with known direct contact with a person who has tested positive are also self-isolating at home with pay.  “We are excited to share that 4 team members have recovered and have returned to work.” said Kolterman.

Lincoln Premium Poultry has implemented additional protection measures recommended by UNMC, including additional screening, strict mandatory use of masks, and additional deep cleaning.  The company had previously limited visitors to the facility, stopped food service and installed dividers on tables, provided further space between workers, implemented nightly intense cleaning interventions, is taking the temperature of all entering their facilities and had provided masks to their workforce.  They have also provided a $2/hour increase to all hourly workers, which began in March, and are regularly providing chicken for their team members.  This virus is not foodborne and cannot be transmitted through food or potable water.

“With the amount of testing we have been doing, we knew the numbers would be significant this week,” said Kolterman, “Our goal has been to slow the spread of the virus, and in that goal, I believe we are succeeding.  We have not seen dramatic spikes in cases – they have come in through a slow and steady trickle.  This speaks well of the protections we have put in place and but we will continue to be vigilant in those efforts.”

Kolterman praised the LPP team, “Words cannot express how proud we are of the team at Lincoln Premium Poultry.  In spite of this challenge, they have continued producing at our projected production levels and have continued to provide product to Costco Warehouses here in Nebraska and across the western part of this country.  As fewer products are available, LPP’s team has demonstrated great commitment to providing food for our country.”



Joint Statement in Support of Nebraska Workers, Farmers and Ranchers

Nebraska Democartic Party and union leaders on Monday voiced support for farmers, ranchers and workers, calling upon elected officials to help create consistent protocols and enforcement measures to keep the food supply chain working during the coronavirus pandemic.

The impacts of Covid-19 on agriculture -- from family farmers and ranchers to workers in the fields and packing plants -- are far-reaching and serious. Our state must ensure family farmers, ranchers and workers are kept safe and healthy while providing the essential work of keeping the food chain supply strong.

We acknowledge the work already being done including House Agriculture Committee Chairman Collin Peterson (D-MN) who recently created a task force to come up with standards and protocols to keep the food chain working at all levels -- from food source, to meatpacking plants and to the grocery stores. Additionally, H.R. 6559, the COVID-19 Every Worker Protection Act of 2020, will assist in creating standards to protect workers. The Heartland Workers Center issued a set of best practices for meatpacking plants at the urging of Senator Tony Vargas. Nebraska Appleseed, ACLU and the Farmers Union have long advocated for policies to keep workers safe and level the playing field for family farmers and ranchers. And more recently, the UNMC and Ag Health Central State’s playbook and checklist to keep workers safe.

As leaders in Nebraska, we urge Governor Ricketts to not let this be a plant-by-plant response. Common baseline health and safety protocols, with an enforcement mechanism in place, need to be established immediately for all meatpacking plants across Nebraska.

Baseline protocols should include items below with a clear enforcement mechanism in place:

--Testing for all workers who show symptoms and who come in contact with individuals who are confirmed with the Covid-19.

--Universal personal protective gear provided (masks, gloves, plexiglass between workers, etc.)--at no cost for the workers--while on the floor and for when they enter and leave the workplace. The gear must be high-quality and allow them to still conduct the core functions of their jobs.

--Slowing down the line speed to allow for safe distance in the job areas where this is possible.

--If a worker is impacted with the Covid-19 on the job, sick leave should be fully paid for by the government or business rather than individuals banked PTO impacted. In short, guaranteed paid sick leave.

--American family farmers and ranchers should be given priority for their product to be purchased for meat packing plants at a fair price including the government and corporations stepping in to assist with transportation of the products to the plants.

 

Weed Control in Alfalfa Post Green-Up
Ben Beckman - Extension Educator
Megan Taylor - Extension Educator

Winter Annuals in Alfalfa
Plants like henbit, pennycress, shepherd’s purse, mustard, annual bluegrass, and cheatgrass are often a problem that seem to magically appear in alfalfa stands every spring. These winter annuals germinate in the fall and then go dormant over the winter. This gives them a head start in the spring, when they begin growing quickly as temperatures warm. This fast growth allows them to use nutrients and moisture before other plants have started to grow, and quickly mature and set seed. Scouting in early spring is the best way to categorize current weed problems and those that may become issues later in the season and into the following year. 

In established stands, we first must decide if weed pressure is worth the cost of an herbicide treatment. For the first cutting, winter annuals can lower quality and palatability. If dairy quality hay is the goal, then cost of the treatment will likely be worth the expense. If hay will be fed to dry cows in the winter, the treatment costs may not be worth the benefit.

Roundup Ready® Alfalfa
Roundup Ready® Alfalfa varieties have made herbicide treatment of challenging weeds much easier, especially in fields with actively growing alfalfa. However, as with any herbicide application, target plant size is important. Label guidelines recommend treatment of weeds before they exceed 4” in height. Additionally, it is important to make applications before the alfalfa canopy begins interfering with spray pattern and distribution of product. Also note that not all glyphosate products may be labeled for use in alfalfa.

Post Control Options for Conventional Alfalfa
For newly seeded alfalfa stands mowing can be good a control option for broadleaf weeds. Increasing the height when mowing can be a good strategy as well. This can slow the growth of broadleaf weeds, while allowing the alfalfa seedlings to re-grow with reduced weed competition. Chemical control is also an option for broadleaf and grassy weeds in both newly seeded and established stands. 

Pursuit® and Raptor® are two good post-emergent options that tend to cause less alfalfa injury and may be a better options for fields with growing alfalfa plants. Pursuit® and Raptor® are both Group 2 herbicides that can be used on established or seedling alfalfa. Pursuit® should be applied for seedling alfalfa at the 2nd trifoliate stage and when there is less than 3” of growth in established alfalfa. Raptor® should be applied when the weeds are less than 2” tall, seedling alfalfa is at the 2nd trifoliate stage and established alfalfa has less than 3” of growth. There is a 30-day feed, grazing, and harvest restriction following the application of Pursuit®. Pursuit® in particular can provide residual control for several weeks post application. These are more expensive options, but can provide control of particularly challenging weed problems.

Prowl H2O® is another product that can be used on seedling and established alfalfa as a post-emergent application. Applications can be made up to the 2nd trifoliate stage for seedling alfalfa whereas established alfalfa application can take place before the alfalfa is 6” tall. This product has a 28-day harvest restriction for applications under 4 pints of product and a 50-day restriction for anything over 4 pints of product. This product is listed as a post-emergence product, but best control is seen when applied before emergence of troublesome weeds.

In established alfalfa stands AIM® and Chateau® Herbicide SW are other options that could be used for post-emergent control only in established stands. AIM® can be used in-between cuttings up to 3” of growth, with a pre-harvest interval of 21 days. Chateau® Herbicide SW application can take place before the alfalfa is 6” tall, application after this timing could lead to damage on trifoliate. This product is not intended for alfalfa grass mixtures and do not apply this product within 25 days of planting or grazing.

For the control of downy bromegrass and annual bluegrass, Arrow® or Select Max® can be used as a post-emergent application in seedling and established alfalfa. Both products can be applied to control grassy weeds between 2 to 6” with a 15-day restriction on feeding, grazing, or harvest following application of either Arrow® or Select Max®. Always read and follow label instructions, specifically for feeding/grazing/harvest restrictions.



Big Blue River Compact Virtual Meeting to Be Held May 13

The 47th annual meeting of the Kansas–Nebraska Big Blue River Compact Administration will be held using internet meeting services on Wednesday, May 13, 2020, at 9:30 a.m. Anyone interested in water-related activities within the Big Blue and Little Blue River Basins in Kansas and Nebraska is encouraged to participate in the meeting.

The meeting will also be live-streamed and will remain available online for later viewing. Attendees who wish to interact with the Administration during the meeting should join the virtual meeting. Attendees who do not plan to interact with the Administration are encouraged to join the livestream. Links to both the virtual meeting and the livestream are posted on the KDA website at: agriculture.ks.gov/bbrc.

The Kansas–Nebraska Big Blue River Compact was entered into in 1971. The purpose of the compact is to promote interstate comity, to achieve equitable apportionment of the waters of the Big Blue River Basin and promote the orderly development thereof, and to encourage an active pollution abatement program in each state.

The Compact Administration is composed of a federally appointed Compact Chairman, currently W. Don Nelson of Lincoln, Nebraska; two state appointed representatives: Chris Beightel of the Kansas Department of Agriculture–Division of Water Resources and Jesse Bradley of the Nebraska Department of Natural Resources; and two citizen representatives: Sharon Schwartz of Washington, Kansas, and Larry Moore of Aurora, Nebraska.

To participate in the virtual meeting, or with other questions about the annual meeting, please contact Chris Beightel, acting chief engineer at KDA–DWR, at 785-564-6670 or Chris.Beightel@ks.gov. Additional information about the Big Blue River Compact and the annual meeting can be found on the KDA website at agriculture.ks.gov/bbrc.



Koontz Sends Letter On How Marketing Mandates May Negatively Impact Cattle Industry

National Cattlemen’s Beef Association (NCBA) President-Elect Jerry Bohn, today released the following statement in response to a letter from Dr. Stephen R. Koontz of Colorado State University providing additional context and clarity regarding his work on cattle markets and the use of that research in conjunction with the 30-14 proposal for mandated cash trade for live cattle:

"NCBA has been working closely with Dr. Stephen R. Koontz to develop solutions that address our concerns with the decline in negotiated cash markets and lack of price discovery. Recently there have been calls for marketing mandates with Dr. Koontz's research being used to support those proposals," said Bohn. "In response to our inquiries regarding his research on this topic, Dr. Koontz released the attached letter to correct the record and clarify his positions and findings on this topic.

"NCBA is committed to finding an industry-led solution, backed by current research and data, to increase the amount of negotiated cash trade in the industry. NCBA's Live Cattle Marketing Committee Working Group has been hard at work crafting industry-led solutions on the best methods to increase cash market activity without causing financial harm to the industry."

Background
The 30-14 policy proposal refers to beef packing companies being required by the government to purchase at least 30% of individual plant fed cattle needs in the negotiated cash market and that those purchases would be delivered to the plant within 14 days.



NMPF Appreciates USDA Dairy Purchases, Looks Forward to Additional Buys

The National Milk Producers Federation expressed appreciation to Agriculture Secretary Sonny Perdue and the U.S. Department of Agriculture for including $120 million of cheese and butter among $470 million in Section 32 food purchases it announced today. The purchases are scheduled to occur in the next two months and are in addition to purchases previously announced in the CARES Act funding.

“These Section 32 purchases will help both Americans who need high-quality nutritious food as well as U.S. dairy farmers who are experiencing unprecedented losses from the COVID-19 national emergency,” said Jim Mulhern, president and CEO of NMPF, the largest U.S. dairy-farmer organization. “The purchases will provide important and needed support to the dairy supply chain. We look forward to learning more details and to continue working with USDA on possible additional purchases.”



SBA to Make Economic Injury Disaster Loans Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic

U.S. Small Business Administration Administrator Jovita Carranza announced today that agricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. SBA’s EIDL portal will reopen today as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, signed into law by the President one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the Coronavirus (COVID-19) pandemic.

“For more than 30 years, SBA has been prohibited by law from providing disaster assistance to agricultural businesses; however, as a result of the unprecedented legislation enacted by President Trump, American farmers, ranchers and other agricultural businesses will now have access to emergency working capital,” said Administrator Carranza. “These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the nation’s vitally important food supply chains.”

Agricultural businesses include businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). Eligible agricultural businesses must have 500 or fewer employees.

The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. For agricultural businesses that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.

For more information, please visit: www.sba.gov/Disaster.



Secretary Perdue Statement on Economic Injury Disaster Loans Being Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic

U.S. Department of Agriculture Secretary Sonny Perdue today applauded the announcement that agricultural producers, for the first time, are now eligible for the Small Business Administration (SBA)’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs.

“America’s farmers, ranchers, and producers need the same help that other American businesses need during this unprecedented time,” said Secretary Perdue. “This significant new authority signed by President Trump will make a tremendous difference for America’s agricultural community.”

SBA’s EIDL portal has been closed since April 15. However, the Agency is able to reopen the portal today, in a limited capacity, as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, which was signed into law by the President one week ago, provided additional critical funding for farmers and ranchers affected by the Coronavirus (COVID-19) pandemic.

In order to help facilitate this important change to EIDL Loan and EIDL Advance assistance eligibility, SBA is re-opening the Loan and Advance application portal to agricultural enterprises only. For agricultural producers that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted prior to April 15 will be processed on a first-in, first-out basis.



USDA Announces $100 million for American Biofuels Infrastructure

U.S. Secretary of Agriculture Sonny Perdue announced the U.S. Department of Agriculture intends to make available up to $100 million in competitive grants for activities designed to expand the availability and sale of renewable fuels.

“America’s energy independence is critical to our economic security, and President Trump fully recognizes the importance of our ethanol and biofuels industries and the positive impacts they deliver to consumers and farmers with an affordable, abundant, and clean burning fuel,” Secretary Perdue said. “American ethanol and biofuel producers have been affected by decreased energy demands due to the coronavirus, and these grants to expand their availability will help increase their use during our economic resurgence.”

The Higher Blends Infrastructure Incentive Program (HBIIP) consist of up to $100 million in funding for competitive grants or sales incentives to eligible entities for activities designed to expand the sales and use of ethanol and biodiesel fuels. Funds will be made directly available to assist transportation fueling and biodiesel distribution facilities with converting to higher ethanol and biodiesel blends by sharing the costs related to and/or offering sales incentives for the installation of fuel pumps, related equipment, and infrastructure.

Additional Information:
USDA is making the grants available under the Higher Blends Infrastructure Incentive Program (HBIIP). The program is intended to increase significantly the sale and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products.

Grants for up to 50 percent of total eligible project costs, but not more than $5 million, are available to vehicle fueling facilities, including, but not limited to, local fueling stations/locations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities.

USDA plans to make available approximately $86 million for implementation activities related to higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel. Higher biofuel blends are fuels containing ethanol greater than 10 percent by volume and/or fuels containing biodiesel blends greater than five percent by volume.



Growth Energy Welcomes USDA Progress on Biofuel Infrastructure

Growth Energy, the nation’s largest ethanol association, welcomed the launch of a major infrastructure program under the U.S. Department of Agriculture (USDA) that promises to expand clean, affordable fuel options at the pump. Announced by USDA Secretary Sonny Perdue, the Higher Blends Infrastructure Incentive Program (HBIIP) will provide $100 million in competitive grants for infrastructure projects to facilitate increased sales of higher biofuel blends.

“We applaud Secretary Perdue and USDA for their continued work to support homegrown fuels, as well as our congressional champions who are pressing ahead with legislation to accelerate our progress," said Growth Energy CEO Emily Skor. “Growth Energy’s pioneering work with Prime the Pump helped make the original Biofuels Infrastructure Partnership a resounding success, supporting the installation of E15 at more than 2,000 retail locations. Our experience proves that the USDA’s investment will pay dividends for years to come – for retailers, farmers, biofuel produces, and motorists alike.

“Due to COVID-19, American farmers and biofuel producers are facing an economic crisis that threatens the very heart of U.S. agriculture. While we work to secure support needed to ensure that we come out of this strong and ready to rebuild the farm economy, we know that continued progress on long-term investments like HBIIP are critical to show that the light at this end of this tunnel is brighter than ever.”

Background
The USDA’s HBIIP will expand domestic ethanol and biodiesel availability by supporting infrastructure projects to facilitate increased sales of higher biofuel blends (E15/B20 or higher). This effort will build on biofuels infrastructure investments and experience gained through the Biofuels Infrastructure Partnership (BIP). USDA administered BIP from 2016-2019 through state and private partners to expand the availability of E15 and E85 infrastructure to make available higher ethanol blends at retail gas stations around the country.



RFA Welcomes Details on USDA Infrastructure Grant Program

Today, the U.S. Department of Agriculture announced more details on a $100 million grant program for activities designed to expand the availability and sale of higher blends of ethanol like E15 and E85, as well as other renewable fuel blends. Renewable Fuels Association President and CEO Geoff Cooper offered the following statement in response:

“U.S. ethanol producers today are facing the worst economic conditions in the industry’s 40-year history due to COVID-19, and they need immediate emergency relief to survive this catastrophe. Once the pandemic is over and fuel markets are showing signs of recovery, expanding infrastructure via the Higher Blends Infrastructure Incentive Program will be important to the long-term future of the ethanol industry and rural America. We thank the USDA for its efforts to support the future of renewable fuels.”



NBB Welcomes USDA Program Funding for Higher Biodiesel Blends

The National Biodiesel Board (NBB) today welcomed Secretary of Agriculture Sonny Perdue's announcement of available funding for competitive, cost-shared grants to support infrastructure for higher blends of biodiesel. USDA today issued a Notice of Funds Available for the Higher Blends Infrastructure Incentive Program (HBIIP).

Kurt Kovarik, NBB's VP of Federal Affairs, said, "NBB's members thank Secretary Perdue and USDA for supporting farmers and biodiesel producers. The Higher Blends Infrastructure Incentive Program will help the industry expand consumers' access to cleaner, better transportation and heating fuels in the future."

Of the $100 million USDA is making available, $14 million will be available to support infrastructure for biodiesel blends above 5%. The grants will match up to 50% of eligible costs or $5 million, whichever is lower. USDA anticipates making approximately 150 awards and providing assistance to 1,500 locations with the available funds.



ACE stands ready to assist fuel retailers as USDA rolls out HBIIP details to expand availability and use of higher ethanol blends

Today, the United States Department of Agriculture (USDA) announced further information and details surrounding the application process for its Higher Blends Infrastructure Incentive Program (HBIIP), which makes available up to $100 million in competitive grants for activities designed to expand the sale and use of renewable fuels, $86 million of which is reserved for higher blends of ethanol. The American Coalition for Ethanol (ACE) is focusing its market development efforts, including the fuel-marketer-focused website flexfuelforward.com, on ensuring fuel marketers know about the funding and receive any assistance they need to participate. ACE Senior Vice President and Market Development Director Ron Lamberty provided insight to USDA during the initial HBIIP stakeholder meeting and has been in close consultation with the USDA since. Lamberty released the following statement in response to today’s announcement:

“ACE is gratified to see many policies we recommended to USDA to make the program more accessible to single store and small chain operators were included in the final program. In particular, we appreciate the Targeted Assistance Goal (TAG) which makes approximately 40 percent of funds available specifically for applicants owning 10 fueling stations/locations or fewer. USDA is also offering applicants ‘consideration for geographical diversity and markets underserved by higher blends’ to help establish higher blend retail facilities in a broader geographic area, which ACE identified as critical to widespread E15 use in our recommendations to USDA.

“A very high percentage of existing stations could add E15 using mostly existing equipment, and USDA is structuring these grants so all fuel retailers — including single store and small chain owners — can receive assistance whether they need to perform simple conversions, upgrades or new infrastructure. Widespread E15 use is going to rely on conversions more than new construction, and ACE will focus on helping stations determine compatibility so they can add higher ethanol blends as quickly as they are able.  Retailers may also need assistance with the application process, which USDA has assured us has been simplified as much as possible for a federal grant program. ACE will be helping retailers navigate the grant process by providing expertise, and when needed, financial assistance to give stations the best chance of receiving grant funding.

“ACE is uniquely suited to assist single-store operators — who own 62 percent of U.S. convenience stores according to recent NACS data. From its inception, ACE's market development program has focused on helping station owners, primarily single store and small chain retailers, understand ethanol as an easy product addition that can provide a competitive advantage and a healthier bottom line. Owners who act now can use the USDA HBIIP to reduce their cost of getting ahead or keeping up with the competition, and ACE stands ready to help fuel marketers complete the application process and make the switch.

“While ACE continues to focus on securing immediate aid for the ethanol industry struggling to survive the catastrophic economic fallout of COVID-19, investments in infrastructure now will help secure long-term growth and help ethanol demand recover more quickly once the economy starts to open back up.”



Tyson Profits Fall 15% in First Quarter

Tyson Foods Inc. warned that the coronavirus pandemic will disrupt business for months to come, reducing its meat production and cutting into supplies for grocery stores and restaurants.

The top U.S. meat supplier by sales has been struggling to fulfill certain orders after COVID-19 closed some plants, executives said. Meanwhile, it is rerouting millions of pounds of meat each week, as demand shifts abruptly toward grocery stores and away from restaurants.

Tyson's efforts to keep plants operating, including chartering planes to deliver protective masks and setting up mobile health clinics, are adding costs.

"In my career, this is the most significant and severe crisis that we've gone through," Tyson Chief Executive Noel White, who has worked in the company's operations for 35 years, told reporters on a conference call.

The impact is already registering at Tyson. On Monday, it reported overall profit fell 15% to $364 million for the quarter ended March 28, during which supermarket shopping ramped up and restaurant visits fell. The company said it couldn't project profitability for the remainder of its fiscal year. Tyson's stock dropped 8% in midday trading.

COVID-19 outbreaks among workers at meatpacking plants have forced closures at Tyson and other companies like Cargill Inc., JBS USA Holdings Inc. and Smithfield Foods Inc. Other plants remain open but with curtailed operations as health worries keep many workers home. The Centers for Disease Control and Prevention last week estimated 4,913 coronavirus cases among workers at 115 U.S. meat plants, and 20 deaths.

President Donald Trump last week enacted a Korean War-era law enabling meat plants to continue operating under the discretion of the U.S. Department of Agriculture, shielding meatpackers from state or local pressure to close down as cases spread. Several of Tyson's largest beef and pork plants remain temporarily shut; and, while executives said the president's move provided a consistent national standard for meat plant operations, Tyson could shut down more plants if needed. White said

Plant closures and slowdowns have cut into overall meat production, leading some supermarket operators to brace for shortages. Tyson is dealing with shortfalls in some products for both grocery stores and restaurant customers, executives said, and the company is focusing its capacity on products that can be made the fastest and in the highest volumes.

"We're in constant dialogue to make sure those disruptions are as minimal as possible," White said.

Stay-at-home directives for consumers in most U.S. states abruptly shifted Tyson's business, with supermarkets now making up about two-thirds of the company's sales, compared with 45% normally, executives said. Restaurant chains and other food service operations usually account for about 40% of Tyson's sales, but that business is down by at least a quarter due to widespread dining room closures.

For Tyson, the supermarket surge isn't enough to make up for lost restaurant profits. The growth in sales to grocery stores is coinciding with a general shift to lower-profit products, and the company isn't planning to raise prices for supermarket customers, Tyson President Dean Banks said. The company also expects its chicken business -- which is more restaurant-dependent than its pork and beef operations -- to lose money between now and early October, when its fiscal year ends.

In response to the drop-off in restaurant business, Tyson and other chicken producers are restraining production, slowing how fast they raise birds and, in some cases, breaking eggs rather than hatching them.

Tyson said it generated $10.88 billion in sales for its latest quarter, up from $10.44 billion a year earlier, but below analysts' forecast. Tyson reported a profit following adjustments of 77 cents a share, short of the $1.04 a share that analysts expected.



Koch Agronomic Services Develops Educational Agronomy Tools for Growers and Retailers

Koch Agronomic Services (Koch) is breaking down the science and technology behind nitrogen loss and soil health. Field Notes, an online educational platform from Koch, will help arm growers and retailers with the knowledge to increase their operational efficiencies.

Throughout the year, Koch will release new Field Notes content from crop science and industry experts in the form of videos, articles and podcasts to be released onto KASFieldNotes.com.

“We wanted to offer growers and retailers a series of in-depth tools that could help explain the complexities of agronomic processes,” says Steve Coulter, senior vice president at Koch. “In the situation we’re currently facing with COVID-19, most people aren’t able to have their usual face-to-face meetings. We believe Field Notes will be extremely valuable in assisting producers determine what’s best for their operations.”

The initial content posted on the site will help growers and retailers better understand nitrogen. One of the most essential nutrients involved in plant growth, it’s vital to know how nitrogen is lost and how to best protect it. Experts will cover the following topics:
    Nitrogen cycle
    4R Nutrient Stewardship
    Three forms of nitrogen loss
    Importance of protecting your nitrogen investment
    Spring weather’s impact on nitrogen
    Managing nitrogen after cover crops

“Nitrogen touches every metabolic process in a plant, so it’s vital that we know how it works and how to protect it,” says Tim Laatsch, technical agronomy manager for Koch. “These materials should go a long way to make the science of agronomy more understandable so that nitrogen management decisions are easier to make.”

For more information, go to KASFieldNotes.com and see the content already posted to help growers implement the best practices to sustainably manage nitrogen.