Wednesday May 27 Ag News

Nebraska Cattlemen Thanks Governor Ricketts for Aid to Small Livestock Producers 

Today, Governor Pete Ricketts announced the availability of $100 million for livestock producers under the Nebraska Coronavirus Relief Fund Program.  Under the new program, beef, pork, poultry, dairy, and sheep/goat producers with between 1 and 10 employees are eligible for a $12,000 grant from the state.

Funding for this program comes from the state-administered Coronavirus Relief Fund (CRF), created by Congress through the CARES Act with the intent to provide direct relief to states and local governments.

Nebraska's total share of CRF funds is $1.25 billion.

"Thank you to Governor Pete Ricketts for recognizing the extreme economic hardship that livestock producers have weathered over the past months. Severe market deterioration's coinciding with historic high beef prices for consumers and low cattle prices for producers have ravaged Nebraska's top industry. Smaller operations, in particular, are having an impossible time managing the per head losses stemming from this major market upheaval. Today's announcement will help get direct relief out to those producers who have been lost in the gap," said Ken Herz, Nebraska Cattlemen President.

Nebraska Cattlemen will keep our members up to date as full details of the program, including the application process, are announced.



NeFB on Announcement of Stabilization Grants for Livestock Producers
Steve Nelson, President, NE Farm Bureau Federation

“We greatly appreciate Governor Ricketts’ actions today to provide much needed assistance to our state’s livestock producers. Since the COVID-19 outbreak, prices paid to farmers for virtually all commodities have experienced double digit decreases, with those who produce livestock experiencing some of the greatest declines. Cattle producers have watched prices fall by as much as 25 percent, while our state’s pork producers have seen prices drop by more than 50 percent. Allowing Nebraska livestock producers to access assistance through the newly announced stabilization grants funded through the CARES Act is welcomed and an important step to help farm and ranch families protect our nation’s food production capacity.”



Senator Halloran, Colleagues Request Aide to Stimulate Local Meat Processing

Senator Steve Halloran, Chairman of the Agriculture Committee of the Nebraska Legislature, wrote to Nebraska’s Congressional delegation (see attached) requesting their consideration of options to incrementally increase the means available to connect farms through local processors with those in need through food banks during this immediate crisis. The goal is to also stimulate opportunities for producers to direct market to customers as well as for the public to procure meats locally in the long term. Senator Halloran was joined by 42 members of the Legislature who cosigned the letter.

The letter urges Congress to consider allowing the USDA to temporarily lift restrictions on meat processed by custom exempt processors to allow custom processed meats to be provided to food banks and other charitable food distribution programs if there was a severe disruption of federally inspected meat processing that was likely to persist for a prolonged period.  The letter would also urge Congress to consider means of assisting small local lockers and smaller commercial processors to meet federal meat inspection standards.

Senator Halloran emphasized that major federally-inspected meat processors in the state are a vital element of the Nebraska economy and measures to protect workers and otherwise reduce vulnerabilities to disruptions should be considered.  Senator Halloran added that the disruptions to that sector also presented an opportunity to explore means of revitalizing small to intermediate size processing operations in the state and consumer awareness of opportunities to source meat from these sources.

“With the disruption of major processing facilities, Nebraskans and others are interested in exploring other options for obtaining meat,” said Senator Halloran.  Perhaps a silver lining to the impact of Covid 19 on the meat processing sector is that there may be greater awareness of consumers in local processing and opportunities for small scale entrepreneurs and producers in the state to serve demand for locally raised and processed meat.”



BUY FRESH BUY LOCAL PROVIDES LOCAL FOOD PICKUP, DELIVERY RESOURCE LIST

The opening of some farmers markets is delayed this year because of COVID-19, and other markets are debating whether to open at all. This has left many consumers seeking local foods and Nebraska producers looking for markets for their meat, dairy, vegetables and fruit.

Buy Fresh Buy Local Nebraska, a program run by the University of Nebraska–Lincoln’s Department of Agricultural Economics, has developed an online directory to connect consumers with locally produced foods for home delivery or pickup.

Producers in the Local Food Resource List, available at http://buylocalnebraska.org, are members of the Buy Fresh Buy Local program. Farmers, along with farmers markets, restaurants and grocery stores that sell fresh local foods, can purchase membership to Buy Fresh Buy Local. The program uses membership fees for marketing and educational efforts that raise the profile of member businesses.

Earlier this year, 32 local producers joined the network after the program offered scholarships to producers affected by COVID-19.

“We now have over 100 members that are all across the state,” said program coordinator Skylar Falter. “We’re excited to get the word out about what they have — demand is really high right now.”

Over the past two months, Falter has seen an increase in farmers selling produce and other home-grown foods directly to consumers.

“What local food is about is community and culture, and when you know the people who are growing your food, it adds value to that meal and your life,” Falter said. “When you know where your food is coming from and you can talk to the farmer if you want to know how it is raised or grown.”

Supporting local producers also supports the state economy, she said. If each of the approximately 720,000 Nebraska households spent just $10 per week on locally grown foods, it could bring $371 million back into the state’s economy each year, according to Nebraska Extension.

Nebraskans can also find the 2020 Nebraska Food Guide and other resources at the website above.

Published each year, the Nebraska Food Guide explores the diversity of Nebraska-grown foods and includes information about seasonal produce, recipes, a searchable map of member farms and even poetry. The guide can be accessed online or readers can request a hard copy.

“The guide is a great resource for anyone who is a longtime local food supporter or someone who is just curious about learning more about where their food comes from,” Falter said.

More than 100 Buy Fresh Buy Local farmers, ranchers and local farm-to-table restaurants submitted the recipes, which are divided into spring, summer, fall and winter to promote the use of seasonal produce.

A new feature of the guide is the Loving Local Food Poetry, where Nebraskans can send their original poetry about local food.

“The poetry features people who live in Nebraska and their connection to agriculture, growing food and cooking,” Falter said. “It’s just really uplifting to read. It’s something to keep us connected and feeling positive during this time.”

For the past 10 years, Buy Fresh Buy Local Nebraska’s efforts have been to support the state’s farmers, ranchers and producers to increase their knowledge of food safety regulation, as well as increase their market share in both rural and underserved urban communities. The program is developing a sustainable food system that nurtures resilient relationships across the local food supply chain.

For more information, visit http://buylocalnebraska.org or https://www.facebook.com/BuyLocalNebraska.



Ricketts Announces Appointment for New Trade Office in Germany

Today, Governor Pete Ricketts announced the appointment of Dr. Theo W. Freye to lead the Nebraska Department of Economic Development’s new office in Germany.  The office will be known as the Nebraska Center Germany.

“With his track record of success leading CLAAS North America in Omaha, Theo Freye has invaluable experience cultivating partnerships between American and German businesses,” said Governor Pete Ricketts. “Theo will be an excellent representative for Nebraska in Germany.”  

The Nebraska Department of Economic Development (DED) is the lead economic development agency for the State of Nebraska.  DED’s International Business Development team works to promote international investment in Nebraska and the growth of Nebraska’s businesses on a global scale.  Dr. Freye will represent Nebraska in Germany as a place for business and assist Nebraska companies in their expansion efforts in the country.  Nebraska Center Germany joins Nebraska Center Japan as the state’s second international office.

“We are incredibly pleased to have Theo Freye join the Nebraska Department of Economic Development to lead Nebraska Center Germany at a time when the state is increasingly involved in the country,” said DED Director Anthony Goins.  “With Theo’s assistance, we hope to capture the momentum from Gov. Ricketts’ November 2019 trade mission to Germany.”

Dr. Freye is the retired CEO (Speaker of the Executive Board) of CLAAS KgaA.  CLAAS is a $4.5 billion family-owned agricultural machinery firm headquartered in Germany.  During his 34-year career with CLAAS, Theo led efforts to expand the company internationally and guided its strategic growth.  Dr. Freye led the foundation and management of CLAAS North America in Omaha, Nebraska.  This facility is now the headquarters for CLAAS on the continent.  Theo held various leadership positions at CLAAS North America, including Chairman and President. 

Dr. Freye holds a Master's degree in Mechanical Engineering from the University of Braunschweig and a Ph.D. in Agricultural Science from the University of Hohenheim.



IRFA Urges Iowa Legislature to Reauthorize Biofuel Tax Differentials Before Session End

As Iowa’s elected leaders prepare to return to the State Capitol and wrap up the 2020 legislative session, Iowa Renewable Fuels Association (IRFA) members urge legislators to take action on key biofuel legislation.

House File 2279 and Senate File 2403 would extend and modernize fuel tax differentials for E15 and higher ethanol blends and B11 and higher biodiesel blends, which are set to expire on June 30, 2020. With the passage of either bill, Iowa will not only continue to support renewable fuels but put millions of dollars back into the Road Use Tax Fund each year for vital infrastructure projects.

“If the legislature allows the biofuel tax differentials to expire, not only will it raise prices on consumers at the pump, it will also hurt Iowa’s farmers and biofuels producers who are suffering as a result of the COVID-19 pandemic and trade disputes,” said IRFA Policy Director Nathan Hohnstein. “Since the implementation of the current tax differential, we’ve seen biofuel blend sales increase dramatically, but with June 30th just around the corner, it is imperative the legislature take action now. Iowa cannot afford to take a step backward in promoting the use of renewable fuels.”

Since the first fuel tax differential bill was passed, which included E10, Iowa has seen E10 and B11 and higher biodiesel blends go from niche fuels to making up 86% and 57% of sales in 2019 respectively. Hohnstein pointed to this as a sign the fuel tax differentials are doing what they are designed to do. Because of this success, the new fuel tax differential modernizes the ethanol side of the policy by applying it to E15 and higher blends, making millions of dollars available for road and bridge repairs.

“The fuel tax differential helped make E10 Iowans’ fuel of choice,” Hohnstein said. “Now is not the time to let up and jeopardize the progress we’ve made. If reauthorized, the modernized tax differential will continue to help grow sales of Iowa’s own home-grown higher blends of ethanol and biodiesel.”




Second Annual BeSure Campaign Aims to Help Bees

The second annual “BeSure!” campaign supported by National Corn Growers Association is underway and runs through July.  The effort focuses on helping pollinators by promoting best management practices and habitat creation all year long.

BeSure centers on promoting proper use of neonicotinoid products to protect honeybees and other pollinators critical to the food supply and ecosystem. This year, the campaign is seeking to reach not only growers and applicators, but also golf course, turf, and ornamental landscape managers.

In its first year, BeSure! focused its messaging on major crops in the Midwest that utilize neonicotinoid-treated seed, such as corn and soybeans. This year, the campaign is expanding to include neonicotinoid foliar sprays, soil drenches, and granule uses on fruits, nuts, vegetables, turf, trees, and ornamental plants that bees visit.

(It’s also extending outreach to include the citrus industry in California and Florida where neonicotinoids have been very effective in stopping invasive pests, such the Asian citrus psyllid that spreads the Huanglongbing (HLB) disease that is decimating Florida’s citrus industry and has cost the state more than 8,000 jobs and $4.5 billion in the last five years.)

“Neonicotinoids are widely used in agriculture and in a variety of landscape and nursery settings,” said Tom Smith, executive director of the National Pesticide Safety Education Center (NPSEC). “Regardless of the specific use and method of application, product label directions should always be followed, and responsible stewardship practices used to protect pollinators, such as avoiding conditions where product drift may occur and avoiding making applications when pollinators [such as bees] are actively foraging.”

GrowingMatters.org/BeSure, an interactive website with up-to-date stewardship tips and information, explains how other neonic applications can be used responsibly, including the comprehensive Insect Pollinators and Pesticide Product Stewardship Guide.

Numerous industry organizations have partnered with Growing Matters, a coalition of companies that are spearheading the BeSure! initiative. The campaign has been endorsed by the American Seed Trade Association (ASTA), the National Corn Growers Association, the American Soybean Association, the National Pesticide Safety Education Center (NPSEC), CropLife America and the Agricultural Retailers Association, among others.



Retail Fertilizer Price Changes Float in Narrow Range

Retail fertilizer prices continued to float between slightly higher and slightly lower than last month during the third week of May 2020, according to retailers surveyed by DTN.  This marks the seventh consecutive week prices have not moved a significant amount, which DTN designates as 5% in either direction.

Once again, five fertilizers were higher in price compared to last month, but the gains were contained to a $1-$2 range. MAP had an average price of $434 per ton, urea $387/ton, 10-34-0 $469/ton, UAN28 $237/ton and UAN32 $280/ton.

The remaining three fertilizers had a slightly lower price. DAP had an average price of $409/ton, down $1; potash $367/ton, down $3; and anhydrous $490/ton, down $2.

On a price per pound of nitrogen basis, the average urea price was at $0.42/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.44/lb.N.

Retail fertilizers are all lower in price from a year ago. MAP, DAP and anhydrous are all 18% less expensive, UAN28 is 12% lower, UAN32 is 11% less expensive, urea is 10% lower, potash is 6% lower and 10-34-0 is 4% less expensive from last year at this time.



FFAR Accelerates Development of New Crop Varieties for Growers

Farmers regularly face challenges from insects, disease and climate change – which can threaten US food security. To help farmers overcome these obstacles, the Foundation for Food and Agriculture Research (FFAR) is providing research funding to develop transformative tools and technologies that allow scientists to rapidly introduce new traits into multiple crop species. Such tools and technologies would ultimately increase food security by providing more resilient, diverse and profitable crops for growers. This request for proposals is funded through FFAR’s Crops of the Future Collaborative and is accepting applications starting today.

Introducing a new trait into a crop using traditional breeding methods requires 8-10 years before the enhanced crop reaches farmers. This program is developing methodologies to reduce this timeline by several years, getting improved crops into the hands of farmers sooner.

“These tools and technologies could introduce any crop trait into any crop variety, resulting in more diverse, sustainable and nutritious crops,” said FFAR Executive Director Sally Rockey. “The lack of rapid crop breeding tools is one of the biggest bottlenecks preventing the commercialization of underutilized crops. FFAR’s Crops of the Future Collaborative aims to address this.”

The Crops of the Future Collaborative seeks applications for crops species that are well suited for sustainable agriculture, valuable for human nutrition and considered an under-appreciated crop that has not benefited from rapid breeding methods. Full application criteria, deadlines and eligibility requirements are available on the Crops of the Future Collaborative website.

The Crops of the Future Collaborative is a consortium of industry partners that jointly contribute to pre-competitive research projects, fostering a comprehensive approach to address some of agriculture’s most complex challenges. The consortium is pursuing research into how a crop’s genetic information encodes important characteristics such as nutrition, disease resistance, productivity and environmental efficiency. The resulting breakthroughs create more sustainable food systems and benefit stakeholders across the value chain, from producers to consumers.



China's Pork Imports in April Jump 170% to Record High

China, the world's top pork consumer, imported a record 400,000 tonnes in April, up nearly 170% from a year earlier, customs data showed, as buyers took advantage of low prices to stock up on meat.

According to Reuters, China imported 1.35 million tonnes of pork in the first four months of this year, surging 170.4% from the same period a year ago, after a plunge in domestic production kept prices much higher than other markets.

The deadly African swine fever disease has reduced China's pig herd by at least 40%, slashing pork output and sending prices of the country's favorite meat to record highs.

China has been buying from overseas markets, including the United States, where pork prices are among the cheapest in the world, and initially fell as infections with COVID-19 began spreading in the country, hitting demand.

Though Chinese pork prices have also fallen steadily since early February, they are still about double where they were a year ago, and were three to four times U.S. pork prices in March, before plant shutdowns caused the latter to spike in mid-April.

The jump in U.S. prices is likely to reduce imports in the coming month, while Chinese pork prices are still falling on weak domestic demand, Reuters reported.

U.S. pork exports to China set a record for the period from January to March, according to data from the U.S. Agriculture Department.

China also brought in 160,000 tonnes of beef in April, up 28% from the previous year. Imports of the meat in the first four months of the year rose 54% to 680,000 tonnes, customs data showed.



Deere Reports Second Quarter Net Income of $665.8 Million

Deere & Company reported net income of $665.8 million for the second quarter ended May 3, 2020, or $2.11 per share, compared with net income of $1.135 billion, or $3.52 per share, for the quarter ended April 28, 2019. For the first six months of the year, net income attributable to Deere & Company was $1.182 billion, or $3.73 per share, compared with $1.633 billion, or $5.07 per share, for the same period last year.

Worldwide net sales and revenues decreased 18 percent, to $9.253 billion, for the second quarter of 2020 and decreased 13 percent, to $16.884 billion, for six months. Net sales of the equipment operations were $8.224 billion for the quarter and $14.754 billion for six months, compared with $10.273 billion and $17.214 billion last year.

"John Deere's foremost priority in confronting the coronavirus crisis has been to safeguard the health and well-being of employees while fulfilling its obligation as an essential business serving customers throughout the world," said John C. May, chairman and chief executive officer. "We've had good success in these areas thanks to the proactive measures we have taken to keep employees safe and our production facilities and parts distribution centers operational. At the same time, the company has reached out to our local communities to help those in need as a result of the pandemic. Deere and its employees have provided generous support to area food banks and other organizations offering assistance during this difficult time."

Deere & Company Announces Quarterly Dividend
The Deere & Company Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable August 10, 2020, to stockholders of record on June 30, 2020.