Tuesday May 19 Ag News

USDA Announces Details of Direct Assistance to Farmers through the Coronavirus Food Assistance Program
U.S. Secretary of Agriculture Sonny Perdue today announced details of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition to this direct support to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distributors, whose workforces have been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need.

“America’s farming community is facing an unprecedented situation as our nation tackles the coronavirus. President Trump has authorized USDA to ensure our patriotic farmers, ranchers, and producers are supported and we are moving quickly to open applications to get payments out the door and into the pockets of farmers,” said Secretary Perdue. “These payments will help keep farmers afloat while market demand returns as our nation reopens and recovers. America’s farmers are resilient and will get through this challenge just like they always do with faith, hard work, and determination.”

Beginning May 26, the U.S. Department of Agriculture (USDA), through the Farm Service Agency (FSA), will be accepting applications from agricultural producers who have suffered losses.
 
Background:
CFAP provides vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but subsequently spoiled due to loss of marketing channels. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.
 
Non-Specialty Crops and Wool
Non-specialty crops eligible for CFAP payments include malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Wool is also eligible. Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A payment will be made based 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller, multiplied by the commodity’s applicable payment rates.

                CARES Act Payment Rate - CCC Payment Rate
Corn  -                 $0.32                          -              $0.35
Soybeans  -       $0.45                          -              $0.50
 
Livestock
Livestock eligible for CFAP include cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head.

                                                CARES Act Part 1 Payment Rate  -  CCC Part 2 Payment Rate
Cattle     Feeder Cattle: Less than 600 Pounds  -  $102.00  -  $33.00
      Feeder Cattle: 600 Pounds or More     -  $139.00  -  $33.00
      Slaughter Cattle: Fed Cattle                    - $214.00  -  $33.00
      Slaughter Cattle: Mature Cattle            -  $92.00    -  $33.00
      All Other Cattle                                            - $102.00  -  $33.00
Hogs and Pigs     Pigs: Less than 120 Pounds      - $28.00    -   $17.00
      Hogs: 120 Pounds or More                       - $18.00    -   $17.00
All Sheep Less than 2 Years Old                             - $33.00    -   $7.00
 
Dairy
For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by a national price decline during the same quarter. The second part of the payment is based a national adjustment to each producer’s production in the first quarter.

Dairy Eligibility
CFAP payments are eligible to all dairy operations with milk production in January, February, and/or March 2020. Any dumped milk production during the months of January, February, and March 2020 is eligible for assistance. However, any milk production priced under a forward contract for any time during January, February, and/or March is ineligible.

CFAP Payments for Dairy
For dairy, a single payment will be made based on a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by $4.71 per hundred weight. The second part of the payment is based a national adjustment to each producer’s production in the first quarter multiplied by $1.47 per hundred weight.
A single payment for dairy will be made calculated from two funding sources. Those include:
    - CARES Act – The payment will compensate producers for price losses during the 1st quarter 2020
    - CCC Funds – The payment will compensate for marketing channel and demand disruptions for the second quarter of 2020 – April, May, and June – due to COVID-19.
 
Specialty Crops
For eligible specialty crops, the total payment will be based on the volume of production sold between January 15 and April 15, 2020; the volume of production shipped, but unpaid; and the number of acres for which harvested production did not leave the farm or mature product destroyed or not harvested during that same time period, and which have not and will not be sold. Specialty crops include, but are not limited to, almonds, beans, broccoli, sweet corn, lemons, iceberg lettuce, spinach, squash, strawberries and tomatoes. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.
 
Eligibility
There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.
 
Applying for Assistance
Producers can apply for assistance beginning on May 26, 2020. Additional information and application forms can be found at farmers.gov/cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through August 28, 2020.
 
Payment Structure
To ensure the availability of funding throughout the application period, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available.

USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus. 



NE Cattlewomen announces plans for the 2020 Beef Ambassador Contest

Monday, June 15, 2020
1:00 pm CDT
Via Zoom & Email Assignment
Registration deadline: Friday, June 10, 2020

The Competition – updated for 2020 contest
Both division of contestants will compete in two different areas.

Media Interview – Held Monday, June 15 via Zoom
Contestants will participate in a mock media interview. The interviewer will have pre-determined questions to ask each contestant with the option to ask follow-up questions to extrapolate additional knowledge or clarify a point. A panel of judges will observe the interaction for: knowledge, articulation, poise and the contestant’s ability to “tell the Beef Production Story” and present the industry in a positive light. Scoring will be done by the judges only. The contestants should be well-versed in all areas of beef production and the beef industry relating to consumers. Special attention should be paid to all current industry issues.

Issue Response – Via Email
Topic emailed Monday, June 15, following Media Interview. Email response deadline Wednesday, June 17, 9:00 AM Central.
Each contestant will be provided with a current beef industry topic. Contestants will be given time to write article and submit via email by the deadline. The article will be judged for accuracy, message, and ability to send the correct message for the industry.
Senior division to write 200-250 words. Collegiate division to write between 500-550 words.

For more information or to register for the contest, contact:
Gina Hudson - phone 402-469-3157 or email hudsonfarms_68315@yahoo.com
- or - email ncw@necattlemen.org - or call - 402-450-0223



The Virtual Nebraska FFA Celebration Schedule is Here!
Thursday, May 21 - Friday, May 22

The Celebrate Nebraska FFA Days schedule has just been released. Tune in on the Nebraska FFA Association Facebook page or neaged.org on Thursday and Friday to watch.

Thursday, May 21
9:00 AM | Virtual Celebration Kick Off - Theme Video, Announcement of Officers, Opening Ceremonies, & Welcome Remarks
10:00 AM | Honorary State Degrees
11:00 AM | National FFA Advisor Remarks
12:00 PM | Retiring Address - Luke Krabel
1:00 PM | Foundation Recognition - Sponsor, I Believe in the Future of Ag & Foundation Board Recognition
2:00 PM | Retiring Address - Faith Santana
3:00 PM | Agriscience Fair Awards
4:00 PM | Retiring Address - Weston Svoboda
5:00 PM | Proficiency Awards
7:00 PM | Retiring Address - Megan Fehr
8:00 PM | Agricultural Educator Recognition - New Teacher Recognition, Retiring Teacher Recognition & State Officer Advisor Recognition
9:00 PM | Talent

Friday, May 22
9:00 AM | Retiring Address - Sam Wilkins
10:00 AM | Chapter Recognition - New Chapter Recognition, Hall of Chapters, Governor's Award of Excellence
11:00 AM | National Officer Remarks
12:00 PM | Retiring Address - Savannah Gerlach
1:00 PM | Service Recognition - VIP Awards, Distinguished Service Award, & Cornerstone Awards
2:00 PM | National Chapter Awards
3:00 PM | Retiring Address - Kooper Jelinek
4:00 PM | State Degree Ceremony
6:00 PM | Stars Over Nebraska
7:00 PM | State Officer Parent Recognition
8:00 PM | State Officer Program
9:00 PM | Adjournment - Closing Remarks & Closing Ceremonies



NDA HEALTHY SOILS TASK FORCE TO MEET

Keith Berns, chair, has scheduled a Zoom meeting of the Healthy Soils Task Force (HSTF) for Thursday, May 21, 2020 in accordance with Executive Order 20-03 issued by Governor Pete Ricketts as a result of the COVID19 pandemic. The meeting will begin at 8:30 a.m. CDT. To attend the Zoom meeting contact HSTF Chairman Keith Berns at keith@greencoverseed.com.

The Task Force will review the initial draft of a healthy soils initiative and action plan as presented by committee.

For an agenda and more details, call the Nebraska Department of Agriculture at (402) 471-2341 or visit https://nda.nebraska.gov/healthysoils/index.html.



Lincoln Premium Poultry Provides Update on COVID-19 Numbers

Lincoln Premium Poultry provided an update today to the community on recent cases at their facility.  Since reporting to the public one week ago, Lincoln Premium Poultry reported an additional 14 cases of COVID-19 over the past week, which brings the company total to 54 cases. As of today the company has also registered 90 negative cases among employees.

“We have mapped the growth curve within our company and can show that we are flattening the curve.” said Kolterman, “We are excited to share that 29 team members have returned to work and are helping us make food for the country.” 

Lincoln Premium Poultry has provided the opportunity for individuals over 65 to self-isolate at home, with pay.  “We will continue to do everything we can to support our team members during this time and will be handing out chicken for them to enjoy with their families this holiday weekend.” 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.

“We will continue to have team members tested who show symptoms or who have been directly exposed,” said Kolterman, “and as we continue testing, our total will grow.  That being said, we are comfortable with the measured growth and will keep working to keep the curve flat.”



USDA SEEKS FEEDBACK FROM PRODUCERS ABOUT 2020 CROPS AND STOCKS

During the next several weeks, U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will conduct the June Agricultural Survey. The agency will contact producers across Nebraska to determine crop acreage and stock levels as of June 1, 2020.

“The June Agricultural Survey is a critical survey of commodities for the 2020 growing season,” said NASS’ Northern Plains Regional Director, Nicholas Streff. “When growers respond to this survey, they provide essential information that helps determine the expected acreage and supply of major commodities in the United States for the 2020 crop year. Results from this survey are used by farmers and ranchers, USDA, businesses, exporters, researchers, economists, policymakers, and others who use the survey information in making a wide range of decisions that benefit the producer.”

Growers can respond to the June Agricultural Survey online, by phone, or mail. They will be asked to provide information on planted and harvested acreage, including acreage for biotech crops, and grain stocks.

“NASS safeguards the privacy of all respondents by keeping all individual information confidential, and publishing the data in aggregate form only to ensure that no operation or producer can be identified,” said Streff. “We recognize that this is a hectic time for farmers, but the information they provide helps U.S. agriculture remain viable and capable. I urge them to respond to the June Agricultural Survey and thank them for their cooperation.”

NASS will analyze the survey information and publish the results in a series of USDA reports, including the annual Acreage and quarterly Grain Stocks reports, to be released June 30, 2020. The survey data also contribute to NASS’ monthly and annual Crop Production reports, the annual Small Grains Summary, and USDA’s monthly World Agricultural Supply and Demand Estimates.

These and all NASS reports are available at nass.usda.gov/Publications/. For more information, call the NASS Nebraska Field Office at 800-582-6443.



Iowa Cash Rents Show Slight Increase

Despite another difficult year in agriculture, cash rents still posted an increase of about 1.4%, according to this year’s Cash Rental Rates for Iowa 2020 Survey, released earlier this month.

Rates across the state averaged $222 per acre, compared to $219 per acre in 2019, the fourth year of relatively stable rates, but at levels about 18% lower than the historical peak reached in 2013, of $270 per acre.

“It’s surprising for me to see that cash rents are pretty stable and have not gone down,” said Alejandro Plastina, associate professor and extension economist at Iowa State University. “And that’s likely a reflection that government programs last year were injecting enough liquidity.”

This year’s survey is available in the May edition of the Ag Decision Maker. The survey included nearly 1,600 responses from farmers, landowners, professional farm managers, realtors and others with knowledge of land rents, reportedly familiar with 1.6 million acres of cash-rented land across Iowa.

The percentage of increase varied across the state, with the lowest quality land showing the largest increase, at 2.7% per acre, compared to the .4% increase for high quality land.

District 4 (WC IA - corn & soybean acres cash rent) - $237, +$2 from 2019

According to Plastina, most cash rents for 2020 were determined by September 2019, during expectations of federal Market Facilitation Program payments and expectations of higher soybean exports to China.

He said the challenges of 2020 were mostly not yet considered, and could lead to some future renegotiations and softening of rates. Those challenges include economic losses from the coronavirus, delays in the Phase 1 trade deal, and decreased demand for biofuels, due to plummeting oil prices.

Plastina said the poor economic condition in agriculture will continue to pressure cash rents and land values, and that barred strong government assistance, it’s possible both land values and rent could see future declines.

“It will remain to be seen whether there will be enough support to maintain the cash rents going into 2021,” Plastina said.

Plastina reminds Iowans that information in the survey is “intended to serve as a reference point” for negotiating an appropriate rental rate for the next year. Rents for individual farms should be based on productivity, ease of farming, fertility, drainage, local price patterns and other factors.

Other resources available for estimating a fair cash rent include the AgDM Information Files Computing a Cropland Cash Rental Rate (C2-20), Computing a Pasture Rental Rate (C2-23) and Flexible Farm Lease Agreements (C2-21).



FMH Expands Complete Farm Insurance Solutions with Dairy Revenue Protection

Farmers Mutual Hail Insurance Company of Iowa (FMH) today announced it will be offering the federal crop insurance product Dairy Revenue Protection (DRP) beginning this July, further expanding FMH's Complete Farm Insurance Solutions™ product suite.

DRP protects against losses in milk revenue caused by changes in market prices and production, giving dairy producers peace of mind when it comes to the challenge of selling milk at optimal prices.

As one of the top-ranking commodities in the United States, dairy is a new commodity for FMH to add to its range of farm insurance products. The company is already well known for its expertise in farm insurance, and FMH President and CEO Ron Rutledge said he looks forward to bringing FMH's reputation for quality service into the dairy sector.

"There's never been a more important time to protect dairy farmers and the industry than right now," added Rutledge. "As America's Crop Insurance Company, we are proud to be offering DRP, along with our other revenue protection products, during a time when there is much market uncertainty in America. Products like DRP ensure America's producers can continue to farm and operate into next year."

Since 1893, Farmers Mutual Hail has been dedicated to protecting America's farmers with a wide range of farm insurance solutions. Today, the U.S.-based company offers federal and private crop insurance through independent insurance agents across the nation. In addition, FMH also provides auto, property, and liability coverage for farmers, and Precision Crop Insurance Solutions™, which uses the speed and accuracy of precision data to enhance crop insurance processes for both farmers and agents.

Producers interested in learning more about Dairy Revenue Protection can talk to their local FMH agent or visit www.fmh.com/drp.



President Donald Trump Addresses Beef Imports During NCBA White House Visit

National Cattlemen’s Beef Association (NCBA) CEO Colin Woodall issued the following statement in response to comments made by President Donald Trump’s about beef imports:

“Today’s comment by President Donald Trump demonstrates the complexity of the U.S. beef business. Live cattle imports to the United States only come from Canada and Mexico and will continue to do so under the terms of the President’s newly negotiated USMCA. America has not imported live cattle from other nations for several years. However, if President Trump is serious about reconsidering import decisions, NCBA and its members strongly request the White House to take another look at his decision to allow fresh beef imports from nations like Brazil, where there continue to be concerns with foot-and-mouth disease and USDA’s decision to reopen the American market to Brazilian beef.

“Beef trade is a complex business, and America’s cattle producers rely on safe and reliable international trading partners, both as a destination for the undervalued cuts we produce here, such as hearts, tongues, and livers, and for importation of lean trim for ground beef production to meet strong consumer demand. Approximately 12 percent of beef consumed in the U.S. is imported product, but that product must meet the U.S. standards for safety before it is allowed into our market.

“President Trump has shown his willingness to negotiate difficult trade deals and take on tough trading partners, and NCBA thanks him for the attention he has given to beef. We encourage him to re-examine the decision to reopen the market to imports from Brazil, Namibia, and any other nation where there are food safety or animal health concerns that could impact American consumers or cattle producers. A re-evaluation of those imports can accomplish his goals of protecting both American cattle producers and American consumer confidence in our own beef supply chain.”



Processing Increase and Beef Values
Josh Maples, Extension Economist, Mississippi State University

The month-long rally in the Choice Boxed Beef Cutout Value (BBCV) peaked at $475.39 per cwt on May 12 last week according to the USDA National Daily Boxed Beef Cutout Report. By Friday, the BBCV was $434.32. This report includes daily negotiated prices and volume of boxed beef cuts delivered within 0-21 days using average industry cutting yields.

The daily Composite Primal Values each turned slightly lower last week. Even with the sharp increases over the past month, the relative changes among cuts continued to show the differences between retail and foodservice sectors. The Rib value surged to a high of $546.59 on Thursday and declined to $522.81 on Friday. This was a 58 percent increase over the daily average from the first 11 weeks of 2020. The Chuck and Round experienced the largest increases at 144 percent and 136 percent above the first 11 weeks of 2020 using the daily negotiated value.

The recent declines in the BBCV coincide with continued improvement in processing totals. The Estimated Daily Slaughter report showed an estimate for last week at 499,000 head. While still 25 percent lower than a year ago, this would be a 10 percent improvement over the week prior. Perhaps more importantly, it would mark the second consecutive weekly increase after five straight weeks of declines. A continuing loosening of the logjam at the processing sector is critical to the cattle and meat sector and would support increased cattle slaughter and increased beef availability.

The weekly USDA National Comprehensive Boxed Beef Cutout encompasses more transaction types than the daily report. A look at the loads by type of sale in the comprehensive report sheds some light on how the flow of beef is traded. In the comprehensive report, USDA breaks out sales into four types: Negotiated sales delivered in 0-21 days, Negotiated sales 22+ days, Formula sales, and Forward Contract sales.

The average weekly number of loads sold over the past five weeks in the comprehensive report was 4,675 which was 32 percent lower than the same time period in 2019. Broken out by transaction type, the biggest reduction has been in the Negotiated sales delivered in 22 or more days which averaged 423 loads over the past five weeks (down 64 percent from a year ago) and Forward contract sales which averaged 76 loads (down 65 percent from year ago). Formula sales averaged 2,509 loads (down 27 percent). The smallest percentage decrease by type was in Negotiated sales for delivery within 21 days which averaged 1,666 loads (down 18 percent from 2019). Given the uncertainty about both available supply and expected demand, it is likely not surprising that sales for delivery further into the future have shown the biggest decline.



U.S. Patent & Trademark Office Bolsters Protection of Common Food Names

The Consortium for Common Food Names (CCFN), U.S. Dairy Export Council (USDEC), National Milk Producers Federation (NMPF), North American Meat Institute (NAMI), National Association of State Departments of Agriculture (NASDA) and American Farm Bureau Federation (AFBF) commend the U.S. Patent and Trademark Office (USPTO) for a new examination guide published on Friday that will help ensure that generic terms are given adequate consideration and protection.

The new improvements are contained within an examination procedure that guides USPTO trademark examining attorneys to inform their review of applications. The revision significantly clarifies and improves review procedures for certain trademarks related to cheese or meat names, creating a more consistent process that will protect the interests of manufacturers, farmers and consumers of common food terms such as parmesan and bologna.

“The U.S. remains the preeminent leader on intellectual property (IP) rights and, given the critical importance of safeguarding the rights of consumers and other stakeholders in a balanced IP system, sets a global example for a system that fairly protects truly distinctive products and common name goods alike. This recent step further deepens U.S. leadership in this arena,” said CCFN Director Jaime Castaneda.



RFA-USDA Webinars to Spotlight Retailer Infrastructure Grants

In cooperation with the U.S. Department of Agriculture, the Renewable Fuels Association will host two webinars this month to help fuel retailers and others understand the new Higher Ethanol Blends Infrastructure Program, or HBIIP.

"U.S. ethanol producers today are facing the worst economic conditions in the industry's 40-year history due to COVID-19; 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," said RFA President and CEO Geoff Cooper. "We want to do all we can to make sure retailers and other have the information they need to participate in this important program, and we thank the USDA for its efforts to support the future of renewable fuels."

The RFA-USDA webinars will be held at 2 p.m. CDT on Friday, May 22, and Thursday, May 28, and cover the same information. They will last for approximately 45 minutes. Register on the links below:

For additional information about HBIIP, visit EthanolRFA.org/HBIIP.

USDA's Higher Ethanol Blends Infrastructure Program is a $100 million grant program designed to expand the availability and sale of higher blends of ethanol like E15 and E85, as well as other renewable fuel blends. Approximately $86 million of the $100 million will be made available to transportation fueling facilities including fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities. USDA began accepting applications for funding for the HBIIP program on May 15, and electronic applications must be submitted by 11:59 p.m. EDT Aug. 13, 2020. USDA expects to announce awards mid-September 2020.