Thursday May 14 Ag News

Quarterly webinar series to address cash rental rates, landlord-tenant issues and recent market volatility

The University of Nebraska-Lincoln’s Department of Agricultural Economics will continue its live webinar series, “Land Management Quarterly,” on May 18 at noon central.

Offered since 2019, the quarterly webinars address common management problems for Nebraska landowners, agricultural operators and related stakeholders interested in the latest insight on trends in real estate, managing agricultural land and solutions for addressing challenges in the upcoming growing season.

The May webinar will cover 2020 cash rental rates and land values in Nebraska and critical communication issues between landlords and tenants under stress. The presentation will also include a special segment on adjusting cash rents due to recent volatility in commodity and livestock prices. The session will conclude with an “Ask the Experts” session, offering participants the chance to get live answers to their land or lease questions.

2020 Land Management Quarterly webinar dates are:
    May 18, noon
    Aug. 17, noon
    Nov. 16., 6:30 p.m.

The webinars are led by Jim Jansen and Allan Vyhnalek, who are both in the Department of Agricultural Economics. Jansen focuses on agricultural finance and land economics and directs the annual Nebraska Farm Real Estate Market Survey and Report. Vyhnalek is a farm succession and farmland management extension educator.

“Events over the last month have placed an immense amount of stress on those involved with agricultural land,” said Jansen. “This webinar will address dealing with uncertainty in developing equitable cash rents, developing an effective lease arrangement and making short- and long-term decisions related to that asset.”

Participants are encouraged to sign up to receive reminders each quarter and submit questions at https://agecon.unl.edu/landmanagement. Anyone can join the webinar from this page when it goes live at noon on May 18.

Each webinar is free and will be recorded. Those can be viewed the day after each session, along with recordings from the entire series.



Lodl reappointed as associate dean for Nebraska Extension

The Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln has announced the reappointment of Kathleen Lodl as associate dean of Nebraska Extension and head of 4-H youth development for a five-year term.

The action comes following a planned five-year review. Lodl has served as an Extension associate dean since 2011.

Lodl has been instrumental in growing and strengthening Nebraska’s already robust statewide 4-H programming. Under her leadership, Nebraska 4-H has engaged one in three Nebraska youth, which translates to a total of 142,000 youth statewide. In addition, Lodl initiated the Next Chapter program, in which 8th graders in 4-H are pre-admitted to UNL and given the opportunity to consider careers, complete required courses and prepare to complete an undergraduate degree in four years or less.

“Nebraska has one of the most innovative and impactful 4-H programs in the United States, thanks in large part to Kathleen’s leadership, vision, energy and initiative,” said Chuck Hibberd, dean and director of Nebraska Extension. “The importance of 4-H is difficult to overstate, as strong 4-H programs benefit the youth and families that they serve, as well as communities and our entire state.”

Lodl also has worked to increase Nebraska 4-H’s national profile; has helped grow the Extension focus on early childhood education; and has worked to increase strategic partnerships between Nebraska Extension and other entities, including partnerships that made possible the popular Raising Nebraska exhibit at the Nebraska State Fair.

Lodl received her bachelor’s, master’s and doctoral degrees from the University of Nebraska-Lincoln, and began her career with Nebraska Extension as a graduate teaching and research assistant in 1984.



USDA Invests More Than $500,000 in High-Speed Broadband in Rural Iowa

U.S. Secretary of Agriculture Sonny Perdue today announced that USDA is investing more than $500,000 to provide broadband service in unserved and underserved rural areas in Iowa. This investment is part of USDA’s round one investments through the ReConnect Pilot Program.

“The need for rural broadband has never been more apparent than it is now – as our nation manages the coronavirus national emergency. Access to telehealth services, remote learning for school children, and remote business operations all require access to broadband,” said Secretary Perdue. “I am so proud of our rural communities who have been working day in and day out, just like they always do, producing the food and fiber America depends on. We need them more than ever during these trying times, and expanding access to this critical infrastructure will help ensure rural America prospers for years to come.”

In rural Iowa, Breda Telephone Corp. will use a $523,749 grant to deploy a Fiber-to-the Home (FTTH) network to connect 113 people, 20 farms and nine businesses in Arcadia, Iowa, in Carroll County to broadband e-Connectivity.

Today’s Iowa announcement marks the final announcement from round one of the ReConnect Program. Since October 2019, USDA has invested $744 million to bring high-speed broadband e-Connectivity to approximately 172,000 households, 19,000 rural small businesses and farms, and more than 500 health care centers, educational facilities, and critical community facilities located in 34 states.



USDA Promotes Innovation with Updated Plant Breeding Regulation

The USDA announced changes to its biotechnology regulations SECURE rule. The revised rule will encourage innovation of new plant breeding techniques while safeguarding our food supply. 

American Farm Bureau President Zippy Duvall says, “We appreciate the USDA and Secretary Perdue for their common-sense approach to encouraging innovation. At a time when agriculture is facing many economic headwinds, the science-based rule provides the opportunity to solve current and future challenges for agricultural production and food security. This final rule will ensure the U.S. remains a leader in biotechnology while providing the safe, healthy and wholesome food supply America’s families deserve.”

Background:
    USDA’s Animal and Plant Health Inspection Service proposed a change to part 340 in 2017.
    The rules had not been revised since they were originally published in 1987.
    The revised proposed rule was published in June 2019.



House COVID Bill Provides Key Livestock-Industry Support

The Livestock Marketing Association (LMA) supports livestock provisions included in the House HEROS Act, particularly a Dealer Statutory Trust to improve recovery in payment defaults and additional funds for producer payments to compensate cattle price losses.

A Dealer Statutory Trust would improve recovery when a producer or livestock auction market is not paid for livestock sold to a dealer. While this is always important, the necessity to address this topic is greatly heightened today. 

“The volatile down market in cattle prices due to COVID-19 has increased the urgency of the establishment of a Dealer Statutory Trust,” said LMA President Tom Frey. “The whole livestock sector is hurting and, unfortunately, this will lead to livestock payment defaults.”

When these defaults occur, a Dealer Statutory Trust would give unpaid sellers (markets and livestock producers) first priority to get livestock back Unfortunately, reacquiring the livestock is not typically possible under current law. Livestock dealers are in the business of buying and quickly re-selling livestock. If a Dealer Trust became law and the defaulting dealer resells the livestock, priority in the proceeds/receivables for livestock would belong to the unpaid seller.

Even in times of great disagreement, Congress and the cattle industry agree the Dealer Statutory Trust is a no-cost, bipartisan solution that provides needed certainty to livestock sellers in troubling times. Dealer Trust was introduced in the bipartisan Securing All Livestock Equitably (SALE) Act in both the House and Senate (H.R. 6067 / S. 3419) and is supported by a U.S. Department of Agriculture feasibility study. In addition to LMA, Dealer Trust is supported by the National Cattlemen’s Beef Association, United States Cattlemen’s Association, R-CALF USA, American Farm Bureau Federation, National Farmers Union, and American Sheep Industry Association.

LMA looks forward to continued work with the House and Senate to see this provision enacted into law.

LMA also appreciates $16.5 billion in additional funds the HEROS Act provides for producer direct payments in this unprecedented COVID-19 pandemic. These funds will help producers participating in the Coronavirus Food Assistance Program (CFAP) program recover cattle price losses.



Ranch Group Urges Opening of CRP Lands to Slow Cattle Supply Chain

Last night R-CALF USA sent a letter to Agriculture Secretary Sonny Perdue asking the Secretary to consider opening the 24 million acres of land enrolled in the Conservation Reserve Program (CRP) to help alleviate the backlog in the live cattle supply chain caused by the COVID-19 pandemic that has reduced slaughter capacity.

The group estimates there are 500K or more fed cattle currently backed up in feedlots with no immediate prospects for harvest. It states the industry may be able to eliminate any present or future need to euthanize any cattle prior to their scheduled harvest by slowing down the entire upstream segment of the live cattle supply chain. 

The letter states that by opening CRP lands to emergency grazing, America’s cow/calf producers, backgrounders, and stockers can potentially slow the live cattle supply chain long enough for the bottleneck between the feedlots and packers to be eased.

The letter states that the industry is faced with the urgent need for more grazing land than normal at the same time that some grazing lands are producing less forage than normal due to drought.

“An immediate solution to this challenge would be to open CRP lands for emergency grazing and making accommodations so non-CRP landowners can rent CRP land from others for a reasonable fee,” the group stated.



NMPF Applauds Robust Dairy Support in HEROES Act

As U.S. dairy farmers and their cooperatives continue to weather the unique storm of the COVID-19 pandemic, the National Milk Producers Federation today thanked the U.S. House of Representatives for supporting critical measures for dairy farmers and their industry partners in its HEROES Act slated for a vote later this week.

Dairy farmers continue to work around the clock to ensure a steady, healthy, and nutritious supply of milk. However, farmers have endured significant losses as the unprecedented collapse of foodservice markets has wiped out substantial dairy product demand. Dairy’s fortunes have been especially grim given milk’s perishability, and farmers of all sizes have suffered from these major losses.

NMPF appreciates that the HEROES Act includes multiple provisions to provide additional direct relief to dairy farmers based on the losses they face this year. The bill also includes NMPF-advocated provisions to strengthen opportunities for milk and dairy product donations to help farmers and consumers. Finally, the package provides important nutrition assistance to the millions of American families and households who are facing food insecurity during this difficult time.

“The dairy industry continues to grapple with difficulty and uncertainty on a scale we have not seen in our lifetimes. Dairy farmers are resilient and will continue to push through this challenge, but the help provided in the HEROES Act will make that burden less overwhelming. We thank the many members of Congress who have given voice to dairy’s urgent needs,” said NMPF president and CEO Jim Mulhern.

NMPF looks forward to continuing to work with Congress and the Trump Administration to provide important relief to all dairy farmers as this process continues.



NSP Statement on USDA Biotechnology 340 Interim Rule

The U.S. Department of Agriculture announced today their final rule on plant biotechnology regulations which will revise decades old regulations regarding the development of certain genetically engineered organisms. National Sorghum Producers CEO Tim Lust released the following statement in response:

“We are pleased USDA has moved forward with the rulemaking process, following earlier guidelines to include new plant breeding technologies like gene editing and technologies like CRISPR. Plant breeding innovations are vital to sorghum producers and will play a fundamental role in our ability to produce more with fewer inputs and to compete in the global marketplace. By utilizing new techniques, products can be developed more efficiently, saving valuable time and resources.

"USDA's approach is commensurate with the broadly acknowledged low-risk and substantial benefits associated with these breeding innovations. We are hopeful that EPA will follow USDA's lead so the improvements in pest and disease resistance can also be achieved through these techniques without and expansion of an unnecessary regulatory burden."





FMCSA Updates to Hours of Service Rules are Welcome Reforms for Ag Retailers

 Agricultural Retailers Association (ARA) Senior Vice President of Public Policy and Counsel Richard Gupton released the following statement in support of the  U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) published final rule updating hours of service (HOS) rules:

"This is welcome news. An update to HOS rules has been a priority for ag retailers for a long time. We are grateful that the Department of Transportation and the administration took our comments into consideration with this final rule.

"Perhaps most notable reforms in the rule are the change to the short-haul exception available to certain commercial drivers by lengthening the drivers’ maximum on duty period from 12 to 14 hours and the extension of the distance limit within which the driver may operate from 100 air miles to 150 air miles. The reforms to the short-haul exemption air mile radius now makes it consistent with the Hours of Service agricultural exemption utilized by the industry.

"This new rule will provide ag retailers with more flexibility to more efficiently serve their farm and non-farm customers, especially during their peak seasons."



China Approves Protocol Allowing Access For U.S. Barley

U.S. barley can now be exported to China following the approval of a phytosanitary protocol by both countries, a market development achievement years in the making finally accomplished with the boost of the U.S.-China Phase 1 deal signed in January.

The notice on China’s customs website was posted on Thursday and confirmed to be approved by the U.S. Department of Agriculture's Animal and Plant Health Inspection Service (USDA-APHIS). In the coming weeks, APHIS and the U.S. Grains Council (USGC) will now work with Chinese officials to develop fumigation and industry best practices requirements, and the Council and barley industry will work to ensure potential exporters meet administrative requirements to sell to China.

“We are pleased to see China making strides to uphold their purchasing commitments under its Phase 1 agreement with the United States, and the fact it could once again position the U.S. barley industry as a preferred supplier is even better news for U.S. barley farmers,” said USGC President and Chief Executive Officer Ryan LeGrand.

Buzz Mattelin, president of the National Barley Growers Association (NBGA), said that particularly in light of supply disruptions from COVID-19, the new agreement would help barley farmers find new buyers for their crops.

“This is a positive development for U.S. barley farmers. Now more than ever it is vital that we diversify and develop new markets for U.S. barley, which has been experiencing reductions in acreage over the past decade,” he said.

The Council has been active in barley promotion in China dating back to the early 1990s, and Council staff have been in conversations with the Chinese and U.S. governments about a barley protocol - the primary roadblock to market entry for U.S. barley - for several years.

“When negotiations started between the United States and China for Phase 1, the Council saw this as a prime opportunity to make sure a barley protocol was included in the list of technical issues to be addressed to open up China to import more feed grains, including barley,” said Cary Sifferath, USGC senior director of global programs.

The Council and barley industry demanded an import protocol be included in the technical and sanitary and phytosanitary provision of that deal, which ultimately required China to produce the guidelines within three months after the effective date of the agreement.

In anticipation of the ability of U.S. producers to export barley - and with renewed interest in U.S. malt by the Chinese brewing industry - USGC staff in China have been working with local importers to expand their supplier contacts. While the new protocol is needed for Chinese imports of malting barley and feed barley, it is not needed for barley malt. Malt has garnered some interest in the country recently.

The Council and the barley industry will also work with barley exporters or export facilities to ensure they are on the General Administration of Customs China (GACC) list, maintained by USDA’s Federal Grain Inspection Service (FGIS), to be in compliance to export according to China’s Decree No. 177.

While opening the door to a new potential market for U.S. barley, the protocol's approval also demonstrates that despite the global COVID-19 crisis and ongoing tensions between the two nations, both the United States and China are committed to the Phase 1 deal's agriculture provisions. In this marketing year, China has also bought substantial purchases of U.S. corn and U.S. sorghum for delivery in this and next marketing year.

“After much hard work and many years, we are pleased that China is open to U.S. barley imports and what they could mean for barley farmers and malt producers in our country,” LeGrand said. “We appreciate the teamwork shown by industry and governments to make this happen.”