Tuesday May 5 Ag News

Nebraska Farm Bureau Asks Congressional Delegation to Assist Nebraska Livestock Producers

The COVID-19 pandemic has caused significant challenges in Nebraska’s agricultural economy, especially for cattle, pork, and poultry producers who have been particularly affected by both price decreases as well as significant logistical challenges connected to the slowdown or closure of meat processing facilities due to the pandemic. . Nebraska Farm Bureau (NEFB) is urging Congress to support additional funding for agriculture in any pandemic response package that moves through Congress.

“For pork and poultry producers, the possibility of needing to euthanize animals is quickly becoming a reality due to the closure of packing plants across the country,” said Steve Nelson, NEFB president.  It is hope President Trump’s recent Executive Order will provide for the safe reopening of those plants, as soon as possible.”

In this next round of funding, NEFB would strongly support three specific efforts that would help the entire agriculture industry.

“We hope more funds can provide any necessary personal protective equipment (PPE) to meat packing facilities to ensure the safety of those who are working so hard to process the livestock produced by our members and needed by the rest of the nation and world. Additional funds are needed to support an indemnity program to help compensate producers who have had to euthanize animals. Also, funds are needed to provide monetary assistance to those contract producers who don’t own the animals but are contracted to care and feed them. Those producers were unfortunately left out of the USDA’s Coronavirus Food Assistance Program (CFAP) but will likely still see monetary losses due to fewer or even no animals running through their facilities,” said Nelson.

Cattle and dairy producers are also experiencing significant economic loss during this crisis as market downturns and packing plant slowdowns are hitting their bottom lines. According to a recent analysis conducted by a number of agricultural economists and led by Dr. Derrell S. Peel from Oklahoma State University, the U.S. cattle industry is expected to experience losses of $13.6 billion due to the pandemic. Unfortunately, those losses are expected to largely occur within the cow-calf sector with losses totaling an estimated $3.7 billion, or $111.91 per head for each mature breeding animal in the United States.

NEFB broke the analysis down further and found that Nebraska revenue losses alone would equal $823 million or 10 percent of the state’s cattle receipts in 2018. NEFB also estimates that Nebraska dairy producers stand to lose $69-87 million depending on the class of milk. While cattle and dairy producers will likely see some support from USDA’s CFAP, it will likely fall short of covering the needs of these important industries. “We hope Congress can include another round of funding for our state’s cattle and dairy producers who make up billions of dollars in economic activity in our state, and ensure any payment limits, if needed, would be significantly increased to realistically capture the capital needed in all segments of the livestock industry,” Nelson stressed in his letter.

Nebraska’s livestock industry is extremely important to Nebraska’s economy as well as our nation’s food supply. As Congress continues to provide much needed aid to many segments of our nation’s economy, we believe our nation’s agricultural industry, and more specific our livestock industry, must be included in the next package that moves to the President’s desk.



AG PETERSON, MIDWEST ATTORNEYS GENERAL URGING FEDERAL INVESTIGATION OF MEAT PACKING INDUSTRY PRACTICES

Attorney General Doug Peterson and the Attorneys General from ten other Midwestern states are urging the Department of Justice to pursue a federal investigation into suspected national price fixing by meat packers in the cattle industry.

In a letter to U.S. Attorney General William Barr, the Attorneys General expressed concern over the likelihood of manipulation of the market for processed beef. The four largest meat packing companies control more than 80% of the beef processing in the United States. The shelf price of beef is exceptionally high, while cattle prices are low and continue to dive. The concern over market manipulation has increased with beef prices reaching record levels as consumers stockpile meat in response to the COVID-19 pandemic, but cattle prices remain low and are decreasing.

The Attorneys General say the pricing margins are a sign that meat packers are using their ability to control the market for processed beef and take advantage of the situation in a manner that could violate the federal antitrust law. In addition to harming cattle producers, this potentially illegal practice hurts consumers nationwide, many of whom are themselves struggling because of loss of employment and reduced incomes.

Peterson and the other Attorneys General believe the situation warrants a full federal investigation because the alleged anticompetitive conduct harms consumers and cattle ranchers across the United States.

“We are specifically asking the Department of Justice to lead a thorough examination of the competitive dynamics of this industry. Now, more than ever, we need to dedicate our collective resources to promote competition and protect consumers.”



Fischer Applauds Letter from State AGs Calling for Probe of Meat Packers for Potential Illegal Practices

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, released the following statement today after Nebraska Attorney General Doug Peterson joined state attorneys general from ten other states in writing a letter to the U.S. Department of Justice. The letter called for an investigation into beef packers for potential anticompetitive behaviors, particularly during the COVID-19 crisis.

“I spoke with Attorney General Peterson last month about this issue, and I applaud him for taking an important step toward protecting Nebraska’s cattle producers and feeders. It’s concerning to see serious price losses for producers while packers are seeing record profits. I have been pushing hard for investigations, and agree that an inquiry by the DOJ would help gather the needed information to ensure the integrity of the beef supply chain during this pandemic,” said Senator Fischer.

In April, Senator Fischer wrote a letter to the U.S. Department of Agriculture calling for the department to expand its existing investigation of beef pricing margins to include recent market impacts as a result of COVID-19. Following her letter, the USDA announced that it would expand its investigation.

Senator Fischer also wrote to Senate Judiciary Antitrust Subcommittee leadership calling for a public hearing to examine competition and claims of possible market manipulation. Consequently, Chairman Mike Lee (R-Utah) and Ranking Member Amy Klobuchar (D-Minn.) wrote their own letter to the DoJ calling for investigations into potential anticompetitive activity.



Iowa Cattlemen share concerns; request details regarding Coronavirus Food Assistance Program

The Iowa Cattlemen’s Association executive committee and feedlot council spoke with Under Secretary Bill Northey on Friday, May 1, about the Coronavirus Food Assistance Plan. Northey is the Under Secretary for USDA’s Farm Production and Conservation and his department will facilitate the payments to producers as part of that program.

Chief concerns include the reported $125,000 payment limit per commodity. According to Brad Kooima, a cattle producer, broker, and member of ICA’s feedlot council, the losses associated with 400 head of fed cattle exceed that payment limit. More than 20% of Iowa feedlots fall into that category.

The other primary concern is the expected coverage of losses. Preliminary information states that 85% of losses between January 1 and April 15  and only 30% of the losses after April 15 will be covered. With feedlot price decreases expected to cost producers $477.05 per head in May and June, compared to losses of less than $244 per head in February and March, it is clear that the most significant economic damages are yet to come.

Under Secretary Northey was unable to provide more detailed information about the payment program, but shared concerns regarding the limited funding available, which must be split between several commodities. ICA leaders reiterated the fact that there is no other safety net available for the cattle industry, and that losses have been historic.

“It is too bad that we are forced to look to the federal government to help with the huge losses that our industry is now suffering; but that is where we are,” said Bob Butcher, a cattle feeder and banker from Holstein. “This would be the first time in my career that direct payments have been made to cattlemen for financial losses. We have no LDP or ARC payments, no MFP payments or even production insurance such as Federal Crop Insurance to provide a safety net for cattle producers.”

Under Secretary Northey said he expects more details about the CFAP to be released in the coming weeks.



Hy-Vee to Limit Meat Purchases

Hy-Vee, Inc. announces that effective today it will limit meat purchases at all of its locations.

Hy-Vee Statement:  We continue to work with industry leaders so we are prepared for any possible fluctuations in product and can best serve our customers. At Hy-Vee, we have product available at our stores but due to worker shortages at plants as well as an increase in meat sales, customers may not find the specific items they are looking for. Because of this, we are going to put a limit on customer purchases in the meat department. Effective Tuesday, May 5, each customer will be limited to four packages of a combination of fresh beef, ground beef, pork and chicken when they checkout at all Hy-Vee locations.



Farm Service Agency Highlights 2020 Spring Crop Acreage Reporting Process

USDA’s Farm Service Agency (FSA) offices in Nebraska currently are open to phone and virtual appointments only but can still work with producers on timely filing crop acreage reports. FSA staff can provide assistance over the phone, by email and through virtual meetings via a software program called Microsoft Teams.

The deadline for acreage certification is July 15, 2020. This includes common spring-planted crops, such as corn, soybeans, and grain sorghum, but also includes Conservation Reserve Program acres and perennial grass.

“In order to comply with FSA program eligibility requirements, all producers must file an accurate crop acreage report by the deadline,” said Nancy Johner, Nebraska FSA State Executive Director. “Our FSA staff still is able to assist producers in completing acreage reports, including providing maps.”

Johner said certification plans may vary by county office, but in general customers can assist FSA by:
-    Paying close attention to email or mail from their County FSA office that outlines the process put in place for 2020 spring certification, and then follow the requested steps; and
-    Keeping good records of what is planted, where it is planted and when it was planted, and then ensuring the transfer of that information to FSA using the process outlined by their county office, as soon as possible following the completion of planting.

FSA offices are using Microsoft Teams software to virtually meet with producers to review maps and documents for certification. Producers who want to schedule a virtual appointment would download the Microsoft Teams app on their smart phone and call the FSA county office for an appointment. Producers also can use Microsoft Teams from their personal computer without downloading software.

“Producers will be able to work with their county office on available options for completing the certification process,” Johner said.

After completed maps and all acreage reporting information is received, FSA will make the certification updates and then contact the producer to acquire signatures on the completed Report of Acreage form (FSA-578).

The following exceptions apply to acreage reporting dates:
-    If the crop has not been planted by the acreage reporting date, then the acreage must be reported no later than 15 calendar days after planting is completed.
-    If a producer acquires additional acreage after the acreage reporting date, then the acreage must be reported no later than 30 calendar days after purchase or acquiring the lease. Appropriate documentation must be provided to the county office.

Producers should also report crop acreage they intended to plant, but due to natural disaster, were unable to plant. Prevented planting acreage must be reported on form CCC-576, Notice of Loss, no later than 15 calendar days after the final planting date as established by FSA and USDA’s Risk Management Agency.

Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP-covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins.

For questions, please contact your county FSA office. To locate your county FSA office visit farmers.gov/service-center-locator.

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 or www.fsa.usda.gov/ne.



Tips for In-season Nitrogen Management in Corn
Charles Wortmann - NE Extension Soil and Nutrient Management Specialist

For much of Nebraska, spring precipitation has been slightly below normal, providing some of the best field conditions for pre-plant fertilizer nitrogen applications in recent years. Great weather is appreciated, but there are still considerations that justify shifting more nitrogen application to in-season versus pre-plant.

One concern is N loss when fertilizer-N was not incorporated. Fertilizers containing urea (such as dry urea and liquid UAN) need to be either injected, incorporated into the soil, or have a ½” of precipitation or irrigation to move them into the soil to stop ammonia volatilization. While urease inhibitors can help provide protection against volatilization, water is eventually needed to stop loss for surface-applied N.

You may wonder how much ammonia volatilization loss can occur with surface-applied fertilizer-N? Unfortunately, N loss through ammonia volatilization is difficult to predict or easily quantify, but it is greater with the following conditions: high soil pH, low cation exchange capacity, more surface crop residues, wet soil, insufficient rainfall, high temperature, and higher N rates.

In addition to volatilization, N loss may also occur due to leaching of nitrate with heavy precipitation and denitrification with soil water-logging, which may have localized occurrence this spring. Another disadvantage of applying all N pre-plant is that we can’t adjust for differences in actual nitrogen availability. For instance, actual N availability may be less than expected if the release of manure N is lower than expected or if uptake of N by a cover crop and N immobilization by cover crop residue is more than expected.

To account for this variability and reduce N losses, consider applying more of your fertilizer-N in season. The amount of fertilizer-N to be applied in-season can be estimated with the Late Spring Soil Nitrate Test (LSNT, also called the Pre-sidedress Soil Nitrate Test or PSNT) or by use of crop canopy reflectance sensing.  Read more on this here... https://cropwatch.unl.edu/2020/tips-season-nitrogen-management-corn. 



2020-2021 Nebraska FFA State Officer Announcement
NE FFA Foundation newsletter

Join us for a Facebook Live watch party! Tune in this Thursday, May 7 at 3:30 pm cst to for a Facebook Live announcing the 2020-21 Nebraska FFA State Officer Team.  Click here to go to our Facebook page and join the watch party on Thursday... https://t.e2ma.net/click/xnujic/dodbypc/d80yjj.

2020-2021 Celebrate Nebraska FFA Days
Next up, mark your calendars for May 21-21. The Nebraska FFA Association will be celebrating virtual Celebrate Nebraska FFA Days. This is an effort to hold a virtual state convention and all awards and recognition from convention will be announced, state officers will deliver their retiring addresses, sponsors will be recognized, as well as State FFA Degree recipients and other student recognition. Be watching for specific links and times.



Nebraska Extension dean and director announces retirement

Nebraska Extension Dean and Director Chuck Hibberd, a Lexington native who fostered a spirit of innovation and collaboration within the organization, will retire on June 30.

Hibberd spent seven years at the helm of Nebraska Extension. Under his leadership, Nebraska Extension, housed within the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln, has moved toward a new way of thinking about the role of Extension, one that’s less about providing answers to questions and more about working with farmers, ranchers, community leaders and families to learn from each other and solve problems together.

“There is so much indigenous knowledge in Nebraska,” Hibberd said. We’re not going to solve the most vexing problems in this state if we don’t gather information from all sources and use that collective knowledge to create robust solutions.”

Hibberd’s professional path started at the University of Nebraska-Lincoln, where he received his bachelor’s degree in animal science. It was his fourth major, but the first one that stuck, thanks in large part to a professor who helped him figure out how to make the courses from his first three majors count toward an animal science degree. That same professor, Merlyn Nielsen, also encouraged him to attend graduate school.

Hibberd received his master’s and doctorate degrees from Oklahoma State University, and upon graduation, he joined the faculty there. His expertise was in beef cattle nutrition and management, and he quickly became involved in Extension programs across Oklahoma, sharing his own research of how beef cows might benefit from various nutritional and management strategies. Hibberd holds two patents from his work at Oklahoma State University.

Hibberd loved the teaching opportunities Extension provided and the opportunity to work with producers and allied industry partners. He also quickly came to love teaching students, eventually chairing a university-wide committee on first-year student success and winning the top teaching award at OSU for his work.

He worked at Oklahoma for 12 years then moved with his family to Scottsbluff to lead the Panhandle Research and Education Center. Among the most memorable projects Hibberd worked on was positioning western Nebraska as a hotbed for the production of chicory, which can be roasted, ground, and combined with or used in place of coffee. Panhandle Research and Education Center faculty and staff, local business leaders, and community members all worked together to start a chicory processing plant in Scottsbluff that kicked off a local chicory industry.

“The community helped fund that project,” Hibberd said. “We couldn’t have done it without them, and they couldn’t have done it without us, a great example of a public/private partnership that worked.”

After nearly 13 years in Scottsbluff, Hibberd moved with his family to Indiana, where he became the director for Purdue Extension. Five years later, when the Extension dean and director position opened at UNL, he returned to his home state, drawn by Nebraska Extension’s reputation for excellence and creativity.

“I didn’t come back to Nebraska because I’m from Nebraska,” Hibberd said. “I didn’t come back because I wanted to work for the University of Nebraska. I came back because I really thought that Nebraska Extension was in a place to continue to grow and evolve in ways that would be fun and exciting and valuable for Nebraskans.”

Over the seven-plus years Hibberd has served as dean and director of Nebraska Extension, he has found that to be true.

During his tenure at UNL, more than 100 Extension professionals at all 83 county offices responded to the worst natural disaster in recent Nebraska history during the floods and blizzard in March of 2019. Immediately, Extension professionals jumped to action to coordinate volunteers from across the state and country who came to help, to assist producers with myriad issues related to livestock, crops and equipment, and to help homeowners and neighborhoods deal with flood water. A year later, Hibberd fostered Nebraska Extension’s efforts to provide resources to producers dealing with market disruptions, parents trying to balance working with suddenly homeschooling their children, rural Nebraskans struggling with their mental health and more during the state’s response to COVID-19.

Nebraska’s 4-H program, which has always been strong, has grown to 142,000 participants statewide — that’s one in three Nebraska youth between the ages of 8 and 18, including over 40,000 4-Hers in Omaha and Lincoln. It’s the highest participation rate in the country.

And Nebraska Extension has shifted to a new model of service. The Extension professionals across the state have continued to serve local producers, communities, businesses and families. But they also work in interdisciplinary teams designed to take on statewide issues important to Nebraskans, such as integrated crop and livestock systems, irrigation efficiency, food access and early childhood development. 

“Nebraska has a strong tradition of excellence in Extension, and under Chuck’s leadership, Extension has become even stronger and better equipped to serve all Nebraskans,” said Mike Boehm, University of Nebraska vice president and Harlan Vice Chancellor for the Institute of Agriculture and Natural Resources at UNL. “He is strategic, extremely collaborative and he has empowered Extension professionals all across Nebraska to deepen their relationships with community leaders, producers, gardeners, parents, educators and many others across the state. His commitment to county-based partnering and his impacts across Nebraska and beyond will be felt for years to come.”

Dave Varner, associate dean and director of Nebraska Extension, will serve as interim dean and director until a permanent replacement is found via a national search.

Varner began his extension career with a college internship in 1986. Since then, he has served as an Extension assistant, educator, associate district director, and held interim director positions at the Southeast Research and Extension Center and the Eastern Nebraska Research and Extension Center, both located near Mead. He also has co-led the Nebraska Extension disaster response and recovery team. He has served as associate dean and director since January 2017.

“Extension professionals care so deeply about the well-being of Nebraskans and make a difference in the lives of Nebraskans every day,” Varner said. “Nebraska extension is deeply committed to the residents of our state and always ready for the next challenge. That’s what I love about the organization.”

In his retirement, Hibberd plans to stay involved with UNL as a volunteer, and to spend time with his family, including 16-month-old twin grandchildren. Beyond that, he said, he plans to continue to learn and teach, as he has his entire life.

And he’ll continue to draw inspiration from his experiences in Nebraska.

“I’ve never seen a place where people get stuff done like they do here. And that spirit of accomplishment is delivered in ways that aren’t just valuable for them, but they’re truly valuable for other people, their communities and their state,” Hibberd said. “That spirit of can-do, that spirit of generosity…I think that’s pretty unique to Nebraska, and that’s why it’s been really special not only to grow up here, but also to finish my career in this amazing place.”



Virtual Field Scouting Basics Workshop Is May 14

Iowa State University Extension and Outreach will offer a virtual Field Scouting Basics Workshop on Thursday, May 14. Due to restrictions as a result of the COVID-19 pandemic, the workshop will be offered as a free webinar. Designed for beginner-level crop scouts, as well as those looking to receive a refresher course on crop scouting principles, this workshop will illustrate the importance of crop scouting, pest management and methods for making successful decisions and evaluations in the field. The webinar will run from 9 a.m. to 3 p.m., and will be broken down into two sessions: 9-11 a.m. and 1-3 p.m.

“While COVID-19 has shut down many facets of our daily lives and routines, farming in Iowa and the North Central region is a critical component to not only the state’s economy, but the global food supply,” said Warren Pierson, program specialist with ISU Extension and Outreach. “Though we here at FEEL would prefer to continue offering a unique, hands-on learning environment for patrons, we know that farmers, certified crop advisers, crop scouts and other agricultural professionals will need to have the proper training in order to complete their jobs and tasks. Crop scouts are often the first to find issues in fields and their reports help drive important pest management decisions.”

FEEL is the Field Extension Education Laboratory, an interactive agricultural demonstration lab.

ISU Extension and Outreach specialists and field agronomists will provide instruction on crop staging and development, and weed, insect and crop disease identification in Iowa corn and soybean production. Participants will also learn principles of integrated pest management and an overview of basic field scouting skills including sample collection, observation and documentation. During the webinar participants may submit questions online, which will be answered by the team of specialists as time allows.

The Field Scouting Basics Workshop presentation topics and instructors include:
    Crop scouting tips and tricks – Angie Rieck-Hinz, extension field agronomist.
    Corn and soybean growth and development – Mark Licht, extension cropping systems specialist.
    Weed identification – Bob Hartzler, extension weed specialist.
    Crop plant disease identification – Ed Zaworski, diagnostician, Plant and Insect Diagnostic Clinic.
    Insect pest identification – Erin Hodgson, extension entomologist.

This free webinar will be offered through Webex. After registering for the workshop participants will receive an email with instructions and a link for joining the meeting. Participants may join through their web browser, a free downloadable app or via app available for their mobile device. Additional instructions and registration are available at www.aep.iastate.edu/scout. Pre-registration is required and will be available until the webinar begins. Participants should join the webinar at least 15 minutes in advance to ensure connections and software are working correctly.

For additional information or assistance with registration please visit http://www.aep.iastate.edu/scout.



Iowa Farmers, Landowners Should Apply Now for Cost Share Funding to Implement Water Quality Practices

Iowa Secretary of Agriculture Mike Naig announced that farmers and landowners can now sign up for cost share funds through the Water Quality Initiative. The funds can be used to help install conservation practices that improve soil health and water quality, including cover crops, no-till/strip-till practices or a nitrification inhibitor.

“During these unprecedented times when so many aspects of our lives have been disrupted by COVID-19, the conservation work has continued. There are more farmers and landowners engaged than ever before,” said Secretary Naig. “If you’ve never tried cover crops or conservation tillage, now is the time to get started. The state’s cost share program will cover some of the initial costs, and we have local technical resources to help you integrate conservation practices into your farm.”

Farmers who are planting cover crops for the first time are eligible for $25 per acre through the cost share fund. Farmers who have already experienced the benefits of using cover crops and are continuing the practice can receive $15 per acre. Growers using no-till or strip-till for the first time to reduce soil erosion and input costs are eligible for $10 per acre. Farmers who use a nitrapyrin nitrification inhibitor to apply fall fertilizer are eligible for $3 per acre through the cost-share fund.

Cost-share funding through the Iowa Department of Agriculture and Land Stewardship is limited to 160 acres per farmer or landowner. The funds will be made available in July, but farmers can start submitting applications immediately through their local Soil and Water Conservation District offices.

Farmers are encouraged to call their local Soil and Water Conservation District offices to inquire about additional cost-share available through other sources.

Last fall, 2,900 farmers and landowners participated in the cost-share program, including 1,200 farmers using the conservation practice for the first time and more than 1,700 farmers continuing the use of conservation practices. An estimated $10.2 million of private funding was invested to match the $6.1 million contributed by the state’s cost-share fund. To learn more about the state’s Water Quality Initiative, visit cleanwateriowa.org.



Beef Production and Imports
Brenda Boetel, Dept of Ag Economics, University of Wisconsin - River Falls

On April 28, 2020 President Trump invoked the Defense Protection Act to classify meat plants as essential infrastructure that must remain open. This act does not mean that slaughter and fabrication will return to pre-COVID 19 levels in the short term as plants have had to slow production due to worker absenteeism as well as greater distancing between employees on the line. For the week ending May 2, slaughter is estimated at 425,000 head, down 8.6% from a week earlier and 36.8% from the same period in 2019. Similar to cattle slaughter, beef production is down an estimated 8.3% from the week ending April 11, 2020 and 22.8% from the same period in 2019.

Meanwhile, total commitment for beef exports totaled 426,673 metric tons, up 7.6% over the same period in 2019 and total fresh and processed beef imports are up just shy of 1% for the first quarter. There has been discussion between the differences in beef produced and packaged for food service compared to retail grocery, and this same principle applies to export beef. Closing off or limiting beef exports does not necessarily mean greater amounts of beef in US retail grocery stores, nor does limiting imports mean greater cattle prices. The reason is because beef exported is not the same beef imported. Even with beef production down, the importance of keep export markets (and import markets) open is vital to the long-term health of the cattle industry.

The US is the only country able to supply large volumes of high-quality finished beef. This ability is due to the millions of acres of highly productive cropland and large expanses of grasslands, as well as the marketing system developed to finish cattle on grain. The US cattle industry cannot produce, in a cost-effective manner, all the types of beef demanded by the US consumer. In the past weeks, the market has seen the price effect of the switch from food service to greater quantities of retail grocery beef demand on primal beef cuts. Loin wholesale prices have increased 20% since middle of March, whereas Chuck wholesale prices have increased 55% since that same time period. The increase is partly due to the use of chuck for ground chuck sold at retail grocery stores. 

Ground beef in the US typically is a combination of two different products: 50% lean trimmings from grain fed cattle and 90% lean trimmings from grass fed cattle or cull cows. These two products are blended together to provide lean ground beef options for restaurants and retail grocery stores. Without these lean ground beef options, many consumers would likely turn to other leaner protein products.

Some producers believe that imports should be limited given the current cattle market and the high demand for beef at the grocery store. Without beef imports however, there would be less 90% trimmings and higher-valued cuts would need to be added to the 50% lean trimmings to produce lean ground beef. Without adequate 90% lean trimmings, the higher-valued beef would need to be ground and added to the 50% trimmings to produce lean ground beef. Given that this higher-valued beef can be exported for a greater price and then lean beef is imported at a lower price, the overall value for beef is greater and the cattle producer benefits from higher beef exports.

Regardless of the value of the exports to the producer, stopping imports and exports will not necessarily equate to greater quantity at the retail grocery store. Seasonally, imports increase between February and June, when the number of cull cows and grass-fed beef is lowest. Additionally, the US typically imports a greater quantity of beef than it exports. Limiting trade will not only reduce the availability of beef in the US, but lower the price for finished cattle.



USDA Dairy Products March 2020 Production Highlights

Total cheese output (excluding cottage cheese) was 1.12 billion pounds, 0.2 percent above March 2019 and 9.0 percent above February 2020.  Italian type cheese production totaled 488 million pounds, 1.1 percent below March 2019 but 8.8 percent above February 2020.  American type cheese production totaled 449 million pounds, 1.4 percent above March 2019 and 7.2 percent above February 2020.  Butter production was 194 million pounds, 7.5 percent above March 2019 and 3.3 percent above February 2020.

Dry milk products (comparisons in percentage with March 2019)
Nonfat dry milk, human - 173 million pounds, up 6.7 percent.
Skim milk powder - 40.8 million pounds, down 15.4 percent.

Whey products (comparisons in percentage with March 2019)
Dry whey, total - 81.6 million pounds, up 5.4 percent.
Lactose, human and animal - 96.1 million pounds, down 15.8 percent.
Whey protein concentrate, total - 39.0 million pounds, down 7.3 percent.

Frozen products (comparisons in percentage with March 2019)
Ice cream, regular (hard) - 64.0 million gallons, down 2.9 percent.
Ice cream, lowfat (total) - 37.9 million gallons, down 10.8 percent.
Sherbet (hard) - 3.11 million gallons, down 3.7 percent.
Frozen yogurt (total) - 5.62 million gallons, down 1.3 percent.



March Sees Lower U.S. Ethanol Exports but Global Sales of U.S. DDGS Firm
Ann Lewis, Senior Analyst, Renewable Fuels Assoc.
   
U.S. ethanol exports contracted in March to 139.9 million gallons (mg), down 28% following a rally in February. However, March sales were consistent with year-ago volumes. Our top three customers trimmed purchases across the board, accounting for 90% of the differential in month-on-month exported volumes. Shipments to Brazil (37.2 mg, -34%), Canada (27.5 mg, -7%), and India (19.6 mg, -59% from the Feb. record high) represented 60% of total U.S. global sales in March. An annualized export pace of 1.94 billion gallons would be implied by prorating first quarter sales, but seasonal factors and the impact of the COVID-19 pandemic will likely result in 2020 exports being well below this level.

March shipments of U.S. undenatured fuel ethanol tamped down by 41% to 59.8 mg. Brazil cut imported volumes by a third to 37.2 mg. Nigeria (5.5 mg), the Philippines (4.6 mg, -33%), and the Netherlands (3.8 mg, -65%) were other larger markets for U.S. product.

Exports of U.S. denatured fuel ethanol in March relaxed by 17% to 65.9 mg. Shipments to chief customer Canada (accounting for 40% of exported product) declined by 8% to 26.1 mg. India cut its purchases by 44% to 15.8 mg following record imports in February. Those declines were countered by upticks in South Korea (9.1 mg, up 5%) and Colombia (8.7 mg, up 46%).

Exports of U.S. ethanol for non-fuel, non-beverage purposes grew 11% to a twelve-month high of 14.2 mg thanks to the confluence of imports by several fluctuating market participants. India (3.8 mg denatured), Nigeria (2.9 mg undenatured), and Saudi Arabia (2.3 mg undenatured) were our larger customers.

The U.S. imported 13.5 mg of cane ethanol from Brazil in March, down 40%. On an annualized basis, the pace during the first quarter of the year would equate to 144.2 mg.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—expanded in March by 5% to 899,730 metric tons (mt). Mexico again secured its position as our top DDGS export market as sales perked up by 15% (190,125 mt, equivalent to roughly one-fifth of global DDGS sales). U.S. shippers doubled efforts to Vietnam with 139,674 mt in DDGS exports, up 114% and a 16-month high. DDGS sales in South Korea (127,636 mt) and Indonesia (104,261 mt) were robust though marginally unchanged from February. These four markets were responsible for 62% of global U.S. DDGS shipments, with the remainder parsed out among another 33 countries. Notably, Japan (28,776 mt, -54%), Thailand (26,551 mt, -56%), and the Philippines (17,513 mt, -30%) saw sizeable declines in demand. Worldwide Q1 2020 U.S. DDGS sales imply an annualized export volume of 10.92 million mt.



Path Cleared For U.S. Sorghum Exports To Vietnam

A new pest risk assessment has been approved by both the U.S. Department of Agriculture (USDA) and Vietnam’s Ministry of Agriculture and Rural Development (MARD), opening the door for U.S. sorghum to flow into the country for high-value uses including pet food and liquor as well as a feed product for the aquaculture, poultry and swine industries.

This opening follows nearly five years of collaborative efforts by the U.S. Grains Council (USGC), the United Sorghum Checkoff Program (USCP) and the National Sorghum Producers (NSP) and work with the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) and Animal and Plant Health Inspection Service (USDA-APHIS), as well as regulators and industry in Vietnam.

It also highlights the importance of addressing a wide range of constraints to new demand opportunities for U.S. ag products and collaboration among U.S. agriculture groups with access to specialized knowledge about the many details of commodity exports.

“We are excited to see our hard work and collaboration pay off in Vietnam,” said USGC President and CEO Ryan LeGrand. “It’s been a long time coming but is a model of how by working together with industry and government good things can happen for U.S. commodities.”

“From an initial visit in 2015 by USCP and the USGC to discover the potential for sorghum in various marketplaces, to the development of a fish feeding trial followed by the release of very positive trial results, our organizations have worked to create opportunity for U.S. sorghum in Vietnam,” said Sorghum Checkoff Executive Director Florentino Lopez. “Of course, all this work would fall short without organizations like NSP that came in along the way to help steward the approvals needed to make it official. Our persistence has paid off, creating additional market opportunity for U.S. sorghum farmers.”

Work on the pest risk assessment – which outlines how U.S. sorghum must be handled to meet regulations in Vietnam – became even more critical after a vessel of sorghum originally destined for China in April 2018 was diverted to Vietnam but couldn’t be delivered because there was no pest risk assessment protocol in place.

The biggest lift during the process was establishing documentation from the industry to pass to APHIS, which then worked with Policy and Program Development on the agreement, led by USCP and NSP. USGC and both sorghum groups, along with their members, worked with FAS in Hanoi to complete the assessment.

For years, the Council and USCP have been working in country to assess potential markets for U.S. sorghum, including feeding trials to test the viability of replacing cassava with sorghum in Pangasius, a large catfish species native to Southeast Asian diets. Annual catfish production in Vietnam alone is 2.4 million tons.

The groups also hosted a delegation from the Vietnam Ministry of Agriculture and Rural Development’s (MARD) Plant Protection Division (PPD) in February to meet with representatives from the Sorghum Checkoff, FAS, APHIS and USDA’s Federal Grain Inspection Service (FGIS). In addition to attending several meetings, the delegation visited the Port of Houston to observe grain loading and met with agribusiness representatives.

Official approval from USDA-APHIS coupled with Vietnam’s pest risk assessment approval opens the door for Vietnam’s PPD to issue import licenses when Vietnamese importers request one for sorghum.

Sorghum is attractive to Vietnamese buyers seeking to diversify their sources of energy in feed and find feed sources that store better in local climates. Sorghum is gluten-free and non-biotech, which is also attractive to niche sectors in Vietnam, including the pet food industry.

The groundwork the Council, USCP and NSP built in Southeast Asia’s aquaculture sector was a critical step in seeing this opportunity to diversify U.S. sorghum’s export markets and create a pathway for U.S. sorghum into one of the fastest growing food-producing sectors in the world.

“This is an excellent model of how organizations can work together to create opportunities for U.S. farmers,” said Tim Lust, NSP and USCP CEO. “We anticipate building lasting relationships with Vietnam end-users, and we look forward to the opportunity to help meet their feed grain needs.”

“This victory is a clear example of how working together–both in industry and in governments–can lead to winners on all sides,” LeGrand said. “Vietnam will be able to meet its country’s grain and feed demands, and U.S. sorghum farmers will have access to a market that has several different sectors as potential end users for their product.”



1,600 Global Customers Attend U.S. Soy’s Digital Conference

The U.S. Soybean Export Council (USSEC) hosted a unique two-day global digital event on April 14 and 15, 2020. A first-of-its-kind event, the U.S. Soy Connection: Global Digital Conference and Situation Report showcased that the U.S. soy industry is open for business despite the global impact of the COVID-19 virus. More than 1,600 customers and soybean industry representatives from 84 countries participated in the digital conference.

Face-to-face relationships are a hallmark of the U.S. soybean industry and USSEC and the entire U.S. Soy family are working to maintain close contact with key stakeholders through technology during this period of social distancing. Connecting virtually is a seamless and nearly effortless way of communication.

One goal of the conference was to demonstrate how the 2020 planting season is moving forward, which allowed customers to see how U.S. agriculture will continue to produce high-quality, reliable, and sustainable products for global end-users. The event helped to sustain and further grow relationships between U.S. soybean farmers and their customers around the world.

“As we continue to navigate these unprecedented times, it’s more important than ever that we demonstrate to current and potential international customers the strength of our farmers and benefits of buying U.S. Soy,” said Jim Sutter, USSEC CEO. “USSEC has quickly adapted and changed tactics so we can show customers that our entire supply chain is working to ensure a sustainably and safely produced, reliable supply of soy for global customers. Throughout the conference, we showcased that despite the global impact of coronavirus, the supply of U.S. Soy remains unwavering.”

The conference highlighted the ongoing commitment to soybean production and delivery.
U.S. soybean farmer and USSEC Chairman Monte Peterson welcomed participants to the global digital conference and highlighted commitment to soybean production and partnerships with customers.

“Spring is planting season and as farmers, we have a responsibility to continue our job no matter what obstacles we face,” said Monte Peterson, a soybean farmer from North Dakota who serves as USSEC chairman and a director for the American Soybean Association (ASA). “Farmers have always been resilient in challenging situations, and this time is no different. And because 60% of our soybean crop is exported, we depend on strong partnerships with our global customers. That is all is part of the U.S. Soy Advantage.”

During the conference, participants received practical information about the industry from industry representatives, stakeholders, and U.S. soybean farmers.
    Thomas Mielke, executive director of ISTA Mielke, shared reflections on global supply and demand in light of the pandemic.
    Emily French, managing director at ConsiliAgra, discussed the implications of black swan events on the global soy marketplace.
    A panel of four U.S. soybean farmers from various geographic regions of the U.S. provided a spring planting outlook.
    A panel of representatives from exporter companies highlighted U.S. ability to meet global export demand.

On April 14, the first day of the conference, global experts discussed soybean trends and the impact of COVID-19.

“There’s no question that its agriculture that makes the world go around,” said French of ConsiliAgra. “Global agriculture continues to do what it does best, and that is feed and nurture the world. As we move through COVID-19, the value of free and reciprocal trade has never been more evident.”

Mielke shared indicators that trade is likely to increase during 2020. He said the Chinese soybean crush has exceeded expectations for the first half of the 2019-20 crop year, and that soybean meal demand is starting to increase compared to a year ago.

“In China, imports of soybeans are recovering,” he said. “We expect China to resume purchases of U.S soybeans in the coming weeks while Brazil exports (after record shipments in March and April) will start declining from May onward.”

On April 15, the second day of the conference, U.S. farmers and exporters described how they are ready and able to meet global demand. Between 2020 planting plans and the reliability of U.S. export logistics, U.S. Soy is positioned to deliver through the COVID-19 pandemic.
U.S. soybean farmer and USSEC Vice-Chairman Doug Winter shared a photo of his farm during his update about 2020 planting intentions and managing the coronavirus.

“I think everybody’s pretty optimistic about this year as far as getting started,” said Doug Winter, a U.S. soybean farmer from Illinois who serves as vice chairman of USSEC and on the United Soybean Board (USB). “We’re pretty much entertained full-time this time of year getting equipment ready, and getting seed all lined up, and getting everything organized for the planting season. We have a plan in place in case we have an employee that would happen to be infected with the COVID-19 virus, but we’re pretty self-contained and insulated out here.”

He added that working with customers is a high priority. “The communication around marketing, the quality of crop, and learning the needs of our buyers all work together to help us as farmers support our customers and make better decisions,” he continued. “Whether meeting in person or virtually, it helps us align on a common goal to increase the effectiveness and efficiency of soy.”

Other farmers echoed Winter’s optimism and expectations to produce a quality crop in 2020.

“Disruptions can take many forms for crops such as the global crisis that we’re experiencing now,” said Soren Schroder, former CEO of Bunge Limited. “The U.S. capacity runs on all coasts with highly efficient multi-modal interior logistic systems which ensure a continuous supply. Both interior and export terminals are highly automated making them more resilient. In short, the U.S. supply chain can be relied upon like no other.”

Exporters joining Schroder on this panel reinforced that soy is moving throughout the U.S. And all companies have plans in place to protect the health and safety of their workers, as well as crisis and contingency plans should a link in the chain be disrupted.

Sutter added, “Through the current uncertainties, we are committed to continued collaboration with our customers in new ways. Working together is the key to mutual success.”



AGCO Reports First Quarter Results

AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment and solutions, reported its results for the first quarter ended March 31, 2020. “AGCO delivered solid results for the first quarter under challenging conditions,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “AGCO’s current priorities are the safety of our employees and serving the world’s farmers as we do our part to minimize the impact of the COVID-19 pandemic on the world’s food supply. We are facing a very dynamic environment requiring rigorous and coordinated business planning to manage our manufacturing, supply chain and aftermarket operations, to effectively serve our dealers and end-customers as well as to maintain a productive workforce. In addition to restarting factories and ramping up production, we remain focused on maintaining parts and service support for our dealers and our customers. It is rewarding to see our employees rise to the challenge to find innovative solutions to keep our business running effectively and support farmers as they continue their important work.”

Net sales for the first quarter were approximately $1.9 billion, a decrease of approximately 3.4% compared to the first quarter of 2019. Reported net income was $0.85 per share for the first quarter of 2020 and adjusted net income, excluding restructuring expenses, was $0.86 per share. These results compare to reported net income of $0.84 per share and adjusted net income, excluding restructuring expenses, of $0.86 per share for the first quarter of 2019. Excluding unfavorable currency translation impacts of approximately 3.6%, net sales in the first quarter of 2020 increased approximately 0.2% compared to the first quarter of 2019.

First Quarter Highlights
-    Reported regional sales results(1): Europe/Middle East (“EME”) (8.0)%, North America 11.2%, South America (1.4)%, Asia/Pacific/Africa (“APA”) (17.8)%
-    Constant currency regional sales results(1)(2): EME (4.7)%, North America 11.7%, South America 13.8%, APA (13.4)%
-    Regional operating margin performance: EME 9.2%, North America 11.0%, South America (5.7)%, APA (1.2)%
-    New Term Loan - $520 million facility completed in April to provide incremental liquidity
-    Repurchases reduced outstanding shares by approximately 1.0 million in the first three months of 2020
-    Full-year outlook withdrawn on March 23rd

“Our first quarter results demonstrated strong execution as we overcame COVID-19 related production disruptions in China and Europe to expand operating margins compared to the first quarter of last year,” stated Mr. Richenhagen. “Strong performance in our North America region highlighted our results driven by improved product availability and an increase in the retail demand of our products. The Precision Planting business also produced significantly improved results over the prior year in its seasonally important first quarter. Our Europe/Middle East region results remained solid but were impacted by production interruptions late in March despite a strong order board. In April, we also added over $500 million in liquidity with the completion of a new term loan facility.”