Wednesday May 6 Ag News

May is Beef Month: Beef is Healthier and More Sustainable than Ever Before

Recent reports question beef’s role in a healthy, sustainable diet. Beef is healthier and more sustainable today than at any point in time. History and well-established research have consistently shown that practical, balanced dietary patterns grounded in science promote health and sustainability, not eliminating single foods, like beef.

The U.S. is the leader in sustainable beef production
Research recently conducted by the USDA’s Agricultural Research Service and The Beef Checkoff, and published in the journal Agricultural Systems, found that data commonly used to depict beef cattle’s environmental impact in the U.S. is often overestimated. The study, which is the most comprehensive beef lifecycle assessment to-date, evaluated greenhouse gas emissions, feed consumption, water use and fossil fuel inputs. In all these areas, beef’s environmental impacts were found to be less than previously reported. Specifically, the report found:
-    Beef production, including the production of animal feed, is responsible for only 3.3 percent of greenhouse gas emissions in the U.S.
-    Per pound of beef carcass weight, cattle only consume 2.6 pounds of grain, which is similar to pork and poultry.
-    Corn used to feed beef cattle only represents approximately 9 percent of harvested corn grain in the U.S., or 8 million acres.
-    On average, it takes 308 gallons of water, which is recycled, to produce a pound of boneless beef. In total, water use by beef is only around 5 percent of U.S. water withdrawals.
-    Total fossil energy input to U.S. beef cattle production is equivalent to 0.7 percent of total national consumption of fossil fuels.

Not only does this data demonstrate that cattle’s environmental impact is less than often reported, thanks to cattle’s unique digestive system they can actually help mitigate food waste.

"Cattle are natural upcyclers, which means most of what cattle eat can’t be consumed by humans and would otherwise end up in the landfill,” explained Sara Place, Ph.D., Senior Director of Sustainable Beef Production Research for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff. “At the end of the day, cattle generate more protein for the human food supply than would exist without them because their unique digestive system allows them to convert human-inedible plants into high-quality protein.”

It’s also important to note that beef continues to become more sustainable in the U.S. thanks to innovation and production efficiencies. In the U.S. today, the same amount of beef is produced with one-third fewer cattle as compared to the mid-1970s, according to USDA’s National Agricultural Statistics Service. If the rest of the world were as efficient as the U.S., global beef production could double while cutting the global cattle herd by 25 percent.

Beef supplies essential nutrients and promotes health in a uniquely efficient way
A 3-ounce serving of lean beef provides 10 essential nutrients in about 170 calories, including high-quality protein, zinc, iron and B vitamins. No other protein source offers the same nutrient mix.  Furthermore any one of the nearly 40 cuts of beef considered lean can be included as part of a heart-healthy diet to support cardiovascular health, according to recent research from Purdue University.   Additionally, research has consistently demonstrated that the nutrients in beef promote health throughout life. In particular, the protein, iron, zinc and B-vitamins in beef help ensure young children start life strong, building healthy bodies and brains. Protein is also especially important in aging populations due to its ability to help build and maintain muscle. After 50 years of age, adults are at risk for losing muscle mass, leading to falls and frailty that affect their ability to age independently.

“Research shows that beef can play an important role in promoting health and helping to prevent nutrient deficiencies,” said Shalene McNeill, Ph.D., R.D., Executive Director of Human Nutrition Research at the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff. “Most people already consume beef within established, science-based global dietary guidelines,ix so there is no reason to systematically reduce beef consumption.”



2020 NEBRASKA WATER & NATURAL RESOURCES TOUR POSTPONED UNTIL 2021

Organizers of the 2020 Nebraska Water & Natural Resources Tour, in consultation with public health experts, have postponed the tour until 2021. The tour was to be held June 21–25 with northeast Nebraska as its focal point. The Nebraska Water Center (NWC) and Central Nebraska Public Power and Irrigation District (CNPPID) – the tour’s co-organizers – plan to recreate the tour next year that would have occurred this year.

“It is out of an abundance of caution to protect the health of attendees and guest presenters that we take this action,” said Nebraska Water Center Director Dr. Chittaranjan Ray.

Established in 1972, the annual event draws roughly 50 participants from across Nebraska for hands-on learning about critical in-state and regional water issues. Organizers were eager about a tour that would have included, among others, stops at Nucor Steel, Ashfall Fossil Beds, Gavins Point Dam, and the Bazile Groundwater Management Area.

“Under the circumstances and with so many uncertainties about travel and lodging in the coming months, postponing the tour until 2021 seemed like the prudent thing to do” added Jeff Buettner, CNPPID’s government and public relations manager.

For more information on the Water & Natural Resources Tours, visit https://www.cnppid.com/summertour/ or https://watercenter.unl.edu/water-tour.



NEW Cooperative Donates Pork Loins To local food pantries for families in need

NEW Cooperative in partnership with the Land O’ Lakes Foundation, recently donated 3,000 pork loins to 23 local food pantries in their trade territory.

“With the coronavirus epidemic putting greater demands on food pantries and NEW as an agricultural cooperative where food is our business, we felt it is important to donate to help those families in need during this unprecedented time.” said Gary Moritz, Communications/Foundation Manager.

NEW Cooperative purchased the pork loins from the Prestage Farms plant in Eagle Grove and with the help from Decker Trucking out of Fort Dodge, we were able to get the pork loins to a central location for distribution. The pork loins were delivered to 23 food pantries throughout the area.



Organic Agriculture Production Concerns Amid COVID-19

Amid the stressful headlines about COVID-19, organic beef producers, like the Rosmanns of Harlan, Iowa, are seeing a surge in organic meat sales, among other organic purchases.

“Whether it’s due to consumers knowing the source of their food in these uncertain times, or lower availability of conventional meat at grocery stores, people are showing far more interest in local and organic meat,” said Maria Rosmann, who owns the on-farm store Farm Sweet Farm.

While grateful for the increased sales, Rosmann and other organic sellers worry about supply keeping up with demand. According to the Organic Produce Network and Category Partners, fresh organic produce sales were up 22% in March, as most of the U.S. began to “shelter-in-place” and purchase larger than ordinary food volumes.

Even with Farmers Markets permitted to open, many consumers feel safer ordering online, as the Des Moines Farmers Market expects customers to do in the foreseeable future, or at smaller shops where social distancing is more easily achieved. Over 17,000 people participated in a virtual Farmers Market in Des Moines on May 2, with 14 vendors listed as selling organic or chemical-free products.

Farmers with excess farm products can always donate to food banks, or through many of the nonprofit organizations distributing to those in need during the pandemic. There is also a number of federal programs open to all farmers to assist with any financial hardship due to COVID-19.

Organic field report
Farm activity has not ceased during the pandemic on Iowa’s organic farms, which are primarily family-operated and multi-functional with numerous enterprises. Organic farmers are observing exponential growth in their fields of small grains (rye, barley, oats and spelt), especially those planted last fall, like annual and hybrid rye.

Hybrid rye is a relatively new crop that can be grazed or used in hog or cattle feed. In general, organic farmers are waiting until growing degree-days (GDD) reach 100 to 120 before planting corn and soybeans.

Because synthetic seed fungicides are not permitted in organic farming, crops need warm soils to germinate and emerge quickly to resist any damaging pests. There has been greater demand for organic seeds this year, as organic acres climbed to 103,136 in Iowa, which ranks fifth in the nation for number of certified organic farms.

Cover crops and grazing interest increases
More farmers are interested in raising cover crops, either as a “green manure” crop, or harvested for grain and straw. However, all cover crops could potentially be grazed by livestock in the early spring and summer.

Grazing is a low-input method to feed livestock, which could improve soil health by adding fresh manure to the field or pastures. Farmers who want to improve soil health and utilize a low-input grazing system may benefit from integrating crops and livestock in their system.

An experiment in Iowa, Minnesota and Pennsylvania, supported by the United States Department of Agriculture-National Institute of Food and Agriculture, examined the effect of grazing cover crops of wheat and rye on beef cattle health benefits and food safety of meat products deriving from this system. The grass-based system was found to support a more balanced omega-6/3 fatty acid ratio, which can accrue in cattle and beef.

The cover crops of winter wheat and winter rye provided an early start to the grazing season, averaging three weeks earlier than other perennial pastures on the farm. The integrated crop-livestock system in this study demonstrated a high probability of meeting food safety goals for limiting E. coli O157:H7 and Salmonella spp. contamination in the forage, feed, feces, hide and meat, according to a study published by Iowa State University researchers.

The Iowa State University Extension and Outreach Organic Ag Program is planning a virtual field day to demonstrate rolling rye in an organic no-till system on June 2 at the Levi Lyle Farm in Keota, Iowa, weather-permitting. Lyle expects the rye to be past anthesis at that date, which is necessary for proper termination of the rye crop where soybeans will be planted.

“We are happy the farm looks so good this spring,” Lyle said, “Especially our rye crops, which are about a foot high now.”

The ISU Organic Ag Program will host other virtual events this year. The 16-week “Transitioning to Organic Agriculture” on-line course is planned for January to May 2021. Details on all events will be posted on the ISU Extension and Outreach Organic Ag website.



U.S. Pork Exports Reach New Heights in March; First Quarter Beef Exports also on Record Pace

Underpinned by record production, U.S. pork exports completed a tremendous first quarter with new March records for volume and value, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports also trended higher year-over-year in March, establishing a record first quarter pace.

“March export results were very solid, especially given the COVID-19 related headwinds facing customers in many international markets at that time,” said USMEF President and CEO Dan Halstrom. “Stay-at-home orders created enormous challenges for many countries’ foodservice sectors, several key currencies slumped against the U.S. dollar and logistical obstacles surfaced in some key markets – yet demand for U.S. red meat proved very resilient.”

Some recent events, including temporary closures of several U.S. processing plants, are not reflected in the first quarter export data. Halstrom cautioned that April and May exports could slow as a result, but his outlook for 2020 remains positive.

“These are truly unprecedented circumstances, creating an uncertain global business climate,” Halstrom explained. “The U.S. meat industry has spent decades developing a loyal and well-informed customer base throughout the world, which has embraced the quality and value delivered by U.S. red meat. Their commitment to U.S. products during this crisis is much-appreciated.”

Strong demand from China/Hong Kong continued to drive U.S. pork exports to new heights, but March exports also increased significantly to Mexico, Japan and Canada. Export volume reached 291,459 metric tons (mt), up 38% from a year ago and topping the previous record set in December 2019. Export value increased 47% to $764.2 million. Through the first quarter, pork exports increased 40% from a year ago to 838,118 mt, valued at $2.23 billion (up 52%).

Pork export value per head slaughtered reached $63.99 in March, up 32% from a year ago. The January-March per head average was $64.66, up 40%. March exports accounted for 31.6% of total pork production and 28.4% for pork muscle cuts – each up about six percentage points from a year ago, even as March production increased by 12%. Through the first quarter, exports accounted for 31.4% of total pork production and 28.5% for muscle cuts, up from 24.4% and 21.3%, respectively, in 2019. U.S. pork production was up 9% in the first quarter, with industry expansion fueled by strong international demand, especially in several key Asian markets still battling African swine fever (ASF).

Driven by solid growth in Japan, where U.S. beef is benefiting from reduced tariffs under the U.S.-Japan Trade Agreement, as well as South Korea, Mexico, Canada and Taiwan, March beef exports totaled 115,308 mt, up 7% from a year ago, valued at $702.2 million – up 4% and the highest monthly value since July. First quarter beef exports climbed 9% from a year ago to 334,703 mt, valued at $2.06 billion (up 8%).

Beef export value per head of fed slaughter was $308.21 in March, down 8% from the very high March 2019 average. For the first quarter, per-head export value increased 2% to $317.06. March beef exports accounted for 13.9% of total production and 11.3% for beef muscle cuts, down from 14.8% and 12%, respectively, a year ago. Exports accounted for 14% of first quarter beef production and 11.4% for muscle cuts, each up slightly year-over-year. U.S. beef production increased by 14% in March and 8% in the first quarter as export growth continued to make a critical contribution to carcass value even as the COVID-19 pandemic disrupted the global foodservice sector.

China, Japan, North America drive record first quarter pork exports
Despite lockdowns lasting through the first quarter, China’s ASF-driven pork deficit continued to drive record-large demand for imports, not only from the United States but from all major suppliers. U.S. exports to China/Hong Kong reached 100,676 mt in March, nearly triple the year-ago volume and just short of the December 2019 record (110,876 mt), while March export value climbed 269% to $235.9 million. First quarter exports to China/Hong Kong were up 231% in volume (296,525 mt) and 321% in value ($724.5 million). China reported total first quarter pork and pork variety meat imports of a staggering 1.197 million mt, up 118% from a year ago. U.S. market share was 18% with the EU remaining the primary supplier, holding 61% market share.

Capitalizing on the new U.S.-Japan Trade Agreement, pork exports to Japan are trending significantly higher in 2020. March exports increased 18% from a year ago to 36,675 mt, valued at just under $150 million (up 19% and the highest since 2017). First quarter exports to Japan increased 12% to 103,515 mt, valued at $428.3 million (up 14%). Japan’s first quarter import data showed a 6% increase in U.S. chilled pork (to 52,061 mt) and a 17% increase in ground seasoned pork (to 20,928 mt). Further tariff reductions were implemented on April 1, which is expected to drive additional demand for value-added products such as ground seasoned pork and sausages, which are in high demand with more Japanese consumers cooking at home.

Pork exports to Mexico continue to make a strong recovery from the retaliatory duties that saddled trade in the first half of 2019. March exports were 63,198 mt, up 9% from a year ago, while export value climbed 19% to $108 million. First quarter exports to Mexico increased 10% to 195,351 mt, valued at $350.2 million (up 34%), though devaluation of the peso and the timing of the Easter holiday are expected to slow April export results.

Other first quarter highlights for U.S. pork exports include:
-    Demand for U.S. pork remains strong in Canada, with exports increasing 13% to 60,145 mt, valued at $214.4 million (up 14%).
-    Soaring demand in New Zealand bolstered exports to Oceania, which increased 4% to 31,325 mt while value jumped 30% to $102.6 million. Exports to Australia were steady with last year in volume at 27,787 mt, but increased 24% in value to $89.3 million. Exports to New Zealand were sharply higher in both volume (3,538 mt, up 58%) and value ($13.3 million, up 95%).
-    Led by solid growth in Honduras and Guatemala and a sharp increase in exports to Nicaragua, U.S. pork continues to build momentum in Central America. First quarter exports were 17% ahead of last year’s record pace in volume (24,392 mt) and 31% higher in value ($62.8 million).
-    Pork exports to Vietnam, where domestic production has also been heavily impacted by ASF, increased 251% in volume (4,382 mt) and 182% in value ($9.8 million). This included 1,215 mt of pork variety meat (mostly pork feet and tongues), up 242% from a year ago, valued at $1.6 million (up 315%).

Strong demand for U.S. beef in both established and emerging markets
Leading market Japan set the pace for March beef exports, increasing 16% from a year ago to 30,568 mt valued at $193.9 million (up 13% and the highest since 2018). First quarter exports increased 12% to 82,872 mt, valued at $523.4 million (up 9%). Japan’s import data show strong growth across all categories, including chilled cuts (31,645 mt, up 6%), frozen cuts (24,560 mt, up 13%) and larger volumes of tongues, skirts and hanging tenders.

Beef exports to Korea remain well ahead of last year’s record pace, with March exports climbing 10% to 22,608 mt valued at $166.5 million. First quarter exports to Korea increased 14% in volume (63,934 mt) and 12% in value ($464.9 million). Korea’s imports from Australia and New Zealand slowed in the first quarter, but imports of U.S. beef increased strongly for both chilled (16,520 mt, +31%) and frozen (51,345 mt, +7%) cuts with strong retail demand and innovative foodservice concepts, including for takeout and delivery. Korea further eased its COVID-19 related restrictions this week, and initial reports on consumer activity over the early May holidays showed a strong recovery in foodservice sales.

Strong momentum for U.S. beef continues in Taiwan, where exports are also coming off a record year. March exports to Taiwan increased 11% from a year ago to 5,725 mt, while value climbed 12% to $49.5 million. Through March, exports to Taiwan were 17% ahead of last year’s pace in volume (15,776 mt) and 15% higher in value ($135.7 million). As in Japan and Korea, the U.S. is the largest supplier of beef to Taiwan and saw strong growth as imports from Australia and New Zealand slowed. Chilled beef volume was up 17%, driven by strong retail demand. There is optimism for summer foodservice sales, given Taiwan’s successful suppression of the COVID-19 virus.

Other first quarter highlights for U.S. beef exports include:
-    Bolstered by strong variety meat shipments, exports to Mexico totaled 59,917 mt valued at $296.6 million, up 4% and 6%, respectively, from the first quarter of last year. This included a 23% increase in variety meat exports (27,198 mt) with value climbing 20% to $71.6 million.
-    After a down year in 2019, beef exports to Canada rebounded to 28,205 mt, up 22% from a year ago. Export value was up 21% to $173.6 million. This also included larger volumes of beef variety meat, as exports increased 48% in volume (2,813 mt) and 67% in value ($5.8 million).
-    Led by strong growth in Indonesia and Vietnam for both muscle cuts and variety meat, exports to the ASEAN region reached 15,032 mt, up 15% from a year ago, valued at $76.3 million (up 21%).
-    Led by growth in South Africa and Gabon, exports to Africa more than doubled in volume (7,759 mt, up 101%) while value increased 74% to $7 million. The vast majority of these shipments were beef variety meat, which totaled 7,637 mt (up 105%) valued at $5.83 million (up 99%).
-    First quarter beef exports to China increased 12% to 1,888 mt, valued at $14.2 million (up 8%), but exports are poised for accelerated growth in 2020 under the U.S.-China Phase One Economic and Trade Agreement. The agreement’s red meat trade provisions, which significantly expand access for U.S. beef, were implemented March 20 so the impact will be more evident in the second quarter.

Lamb exports rebound on strong muscle cut growth to Mexico
March exports of U.S. lamb trended higher for the first time in 2020, reaching 1,849 mt (up 29% from a year ago) valued at $2.4 million (up 13%). This growth was largely driven by muscle cut exports to Mexico, which totaled 1,152 mt – up from just 41 mt in March 2019.

First quarter lamb exports were down 21% from a year ago in volume (3,284 mt) and 16% lower in value ($5.8 million). But muscle cut exports trended higher, increasing 159% in volume (1,707 mt) and 5% in value ($4.2 million). In addition to Mexico, lamb muscle cuts achieved first quarter growth in Japan and Egypt.



USDA announces commodity purchasing plans

The Department of Agriculture this week announced details of the $470 million in Section 32 food purchases to occur in the third quarter of fiscal year 2020 in addition to purchases previously announced.

The purchases will provide additional support for producers and Americans in need, in response to changing market conditions caused by the COVID-19 national emergency.

Agriculture Secretary Sonny Perdue says, “USDA is in the unique position to purchase these foods and deliver them to the hungry Americans who need it most.” The Agricultural Marketing Service will purchase a variety of fruits, vegetables, meat, dairy and seafood products.

The purchases include $30 million of chicken products, $120 million of dairy products and $30 million of pork. Additionally, USDA will purchase $50 million of potatoes, another $50 million of turkey products, and $30 million of catfish products, among others.

Purchases are determined by industry requests, market analysis and food bank needs. AMS will begin issuing solicitations in June and intends to begin deliveries in July.



Secretary Perdue Issues Letters on Meat Packing Expectations

U.S. Secretary of Agriculture Sonny Perdue last night sent the following two letters to Governors across the nation and leadership of major meat processing companies. These letters establish the U.S. Department of Agriculture’s (USDA) clear expectations for the implementation of President Donald J. Trump’s Executive Order signed last week. The President’s Executive order directs plants to follow the Centers for Disease Control (CDC) and the Occupational Safety and Health Administration (OSHA) guidance specific to the meat processing industry to keep these critical facilities open while maintaining worker safety.

“USDA expects state and local officials to work with these critical meat processing facilities to maintain operational status while protecting the health of their employees,” Secretary Perdue said. “Meat processing facilities are critical infrastructure and are essential to the national security of our nation. Keeping these facilities operational is critical to the food supply chain and we expect our partners across the country to work with us on this issue.”

Text of each of the letters can be found here: Letter to Governors https://www.usda.gov/sites/default/files/documents/governor-letters-covid.pdf
and here: Letter to Stakeholders https://www.usda.gov/sites/default/files/documents/stakeholder-letters-covid.pdf. 



USDA Applauds Missouri Court Ruling on Meat Processing Plants

U.S. Secretary Perdue today applauded the decision made by the District Court of Western Missouri which ruled that the Occupational Safety and Health Administration (OSHA) has the primary jurisdiction over worker’s safety in meat processing plants across the country during the COVID-19 national emergency.

“This ruling affirms that OSHA is the primary entity that has authority over worker’s safety,” Secretary Perdue said. “Since President Trump issued his Executive Order last week to keep these critical facilities operating, USDA has been working hand in hand with OSHA and the CDC to ensure meat processing facilities are abiding by Federal guidelines. This ruling is directly in line with what the Federal government has been calling for companies and communities to do in light of the President’s Executive Order. If we continue to work together, we can maintain the critical supply of meat and poultry for Americans while also protecting worker health and safety.”
 
Background:
On April 28, 2020 President Donald J. Trump signed an Executive Order to keep meat and poultry processing facilities open during the COVID-19 national emergency. The Centers for Disease Control and Prevention (CDC) of the Department of Health and Human Services and the Occupational Safety and Health Administration (OSHA) of the Department of Labor have put out guidance for plants to implement to help ensure employee safety to reopen plants or to continue to operate those still open. Under the Executive Order and the authority of the Defense Production Act, USDA will work with meat processing to affirm they will operate in accordance with the CDC and OSHA guidance, and then work with state and local officials to ensure that these plants are allowed to operate to produce the meat protein that Americans need. USDA will continue to work with the CDC, OSHA, FDA, and state and local officials to ensure that facilities implementing this guidance to keep employees safe can continue operating.



Weekly Ethanol Production for 5/1/2020

According to EIA data analyzed by the Renewable Fuels Association for the week ending May 1, ethanol production strengthened 11.4%, or 61,000 barrels per day (b/d), to 598,000 b/d—equivalent to 25.12 million gallons daily and a four-week high. However, production remains tempered due to COVID-19 disruptions, coming in 42.3% below the same week in 2019. The four-week average ethanol production rate declined 3.1% to 567,000 b/d, equivalent to an annualized rate of 8.69 billion gallons.

Ethanol stocks thinned by 2.8% to 25.6 million barrels, diminishing across all PADDs. However, reserves remain 14.0% higher than year-ago volumes.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, leapt 13.7% to 6.664 million b/d (102.16 bg annualized) yet was 32.5% lower than a year ago.

Refiner/blender net inputs of ethanol lifted modestly, up 2.1% to 595,000 b/d, equivalent to 9.12 bg annualized and 35.3% below the year-earlier level. Over the last four weeks, implied gasoline demand rebounded by 31.6% while refiner and blender net inputs of ethanol recovered by 18.5% – a differential mostly attributable to last week’s surge in gasoline volume.

There were no imports of ethanol recorded for the eighth straight week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of March 2020.)



The Andersons, Inc. Reports First Quarter Results

First Quarter Highlights:
-    Company reported a net loss attributable to The Andersons of $37.7 million, or $1.15 per diluted share, and an adjusted net loss of $43.2 million, or $1.32 per diluted share.
-    Adjusted EBITDA declined to $14.7 million for the quarter.
-    Ethanol and corn demand were sharply lower in March, reflecting reduced vehicle travel.
-    Trade Group reported a pretax loss of $10.0 million, and an adjusted pretax loss of $8.7 million, as lower ethanol demand caused significant depreciation in corn basis.
-    Ethanol Group recorded a pretax loss of $37.4 and a pretax loss attributable to the company of $24.0 million, including $14.7 million of non-cash mark-to-market and inventory adjustments.
-    Plant Nutrient Group improved year-over-year results by $2.7 million, recording a pretax loss of $1.2 million on lower operating and interest expenses.
-    Rail Group earned $1.0 million of pretax income on lower lease income.

"The Andersons is a key player in essential businesses that are a part of the North American agriculture supply chain, and despite the challenging environment caused by the COVID-19 pandemic, our company remains healthy, resilient and strong," said President and CEO Pat Bowe. "We have continued to operate throughout the pandemic except for the previously announced ethanol plant maintenance shutdowns, and our balance sheet remains solid; we have ample liquidity to sustain us."

"We thank our employees, particularly those working in our plants and operations, for demonstrating their commitment to the company and to our customers and communities by keeping our businesses running safely and effectively during this time. We have maintained as our top priority the health and safety of our employees, who have performed admirably in these difficult conditions. We extend our sympathies to those in our communities who have been directly affected by COVID-19."

"Most parts of our business were off to a decent start to the quarter, but the COVID-19 pandemic had a profound negative impact on our operating results. Stay-at-home orders reduced vehicle miles traveled, which in turn dramatically reduced demand for gasoline, ethanol and corn, significantly hurting the performance of both the Ethanol Group and Trade Group," continued Bowe. "The Plant Nutrient Group demonstrated resiliency during the quarter as results improved year-over-year and benefited from a good start to the planting season."



NGFA commends Senate committee for advancing new waterways cost-share formula

The National Grain and Feed Association (NGFA) commended members of the Senate Environment and Public Works Committee today for approving waterways legislation that would reform the funding cost-share model for rehabilitating the nation’s inland waterways system.

NGFA said the legislation, which authorizes $17 billion for various infrastructure projects, would “enhance U.S. agriculture’s competitiveness, contribute to the overall efficiency of the U.S. transportation system, and promote overall U.S. economic growth and job creation.”

The committee voted 21-0 to approve S. 3591, dubbed the America’s Water Infrastructure Act (AWIA) of 2020, which includes a section (Section 1069) that would increase to 65 percent the federal government’s share for funding construction and major rehabilitation of each inland waterways navigation project. The remaining 35 percent would be paid by commercial users of the inland waterways, such as barge and towboat operators through barge diesel fuel taxes deposited into the Inland Waterways Trust Fund (IWTF). Currently, the cost-share formula is an even 50:50 split.

“…(C)hanging the cost-share formula for inland waterway construction and major rehabilitation of navigation projects, as proposed in the AWIA 2020 draft legislation, is both a necessary and prudent policy reform for which there is a precedent,” NGFA said in a statement submitted for the record prior to today’s Senate committee action. “This provision would expedite such projects and bring the U.S. inland waterways transportation system into the 21st century.”

NGFA noted that the majority of U.S. locks and dams have outlived their 50-year design life, and most are incapable of handling modern 1,200-foot barge tows while still others are requiring more maintenance that costs shippers valuable time and resources. 

Since 2014, Congress has committed to examining and reauthorizing water infrastructure policies and projects every two years as part of the Water Resources and Development Act process. NGFA noted there were several precedents for changing the cost-share formula. In 2016, Congress changed the cost-share formula for deep draft ports from 50 percent general revenue and 50 percent non-federal sponsor funding to 75 percent general revenue and 25 percent non-federal sponsor. Congress also previously altered the cost-share for both the Olmsted locks-and-dam and the Chickamauga lock projects to increase the federal share.

AWIA 2020 next goes to the Senate floor for consideration, and NGFA urged prompt consideration and passage of the measure. NGFA also is supporting efforts by the House Transportation and Infrastructure Committee to approve its version of the legislation soon.



ICASA Solicits Call for Research Concepts to Address Infectious Cattle and Pig Diseases

The International Consortium for Antimicrobial Stewardship in Agriculture (ICASA), one of the largest public-private partnerships focused on antibiotic stewardship in animal agriculture, is soliciting calls for research concepts related to metaphylaxis, an approach to controlling infectious diseases in beef cattle and pigs.

Infectious outbreaks in cattle and pigs can be difficult to detect and prevent with the tools that are current available. As a result, it can be challenging to know the best time to treat animals and which animals will benefit most from treatment. Without the proper tools to identify affected animals, diseases spread rapidly and can have significant impacts for producers. For example, one of the most prevalent and economically important diseases affecting cattle is bovine respiratory disease (BRD), which affects approximately 20 percent of cattle and costs producers $800-900 million annually.

One approach to treating and controlling BRD and other infectious diseases is called metaphylaxis, in which a group of animals is treated at the same time to prevent the disease from spreading and affecting many animals. However, it is a challenge to know when to use metaphylaxis and how to best identify and exclude animals that may not need treatment. More accurate detection tools and strategies are needed to better predict the occurrence of infectious diseases in cattle and pigs while enhancing animal welfare and preserving the economic sustainability of the industry.

ICASA is soliciting research concepts to develop tools that enable producers and veterinarians to identify the animals at highest risk of infectious diseases and those that would benefit most from treatment. Such tools would enable more targeted approaches to metaphylaxis. Separately, researchers should address how metaphylaxis impacts the prevalence of antimicrobial resistance and/or develop health and management practices that improve health outcomes in beef cattle and pigs.

“ICASA is working across the industry to tackle the complicated problem of when and how to best administer antibiotics in livestock to improve animal welfare,” said FFAR’s Executive Director Dr. Sally Rockey. “We are looking forward to reviewing proposals for strategies and technologies that improve metaphylaxis and ensure the judicious use of antibiotics."

Additional information about the call for research concepts is available on the ICASA website. Pre-applications are due June 17, 2020 and must be submitted via FFAR’s online portal. Applications will be reviewed by ICASA participants and will be evaluated on a variety of factors including potential for supply chain implementation, potential for impact, likelihood for successful completion, originality, key personnel qualifications and strength of partnerships.

The Foundation for Food and Agriculture Research (FFAR) created ICASA in 2019 to facilitate research that promotes the judicious use of antibiotics, advances animal health and welfare and increases transparency in food production practices. ICASA improves antibiotic stewardship by building cross-sector partnerships among participants representing all stages of the US livestock supply chain.

About the International Consortium for Antimicrobial Stewardship in Agriculture
The International Consortium for Antimicrobial Stewardship in Agriculture (ICASA) is a public-private partnership created by the Foundation for Food and Agriculture Research (FFAR) to advance research on antimicrobial stewardship in animal agriculture. ICASA’s research promotes the judicious use of antibiotics, advances animal health and wellness, and increases transparency in food production practices.

FFAR’s initial $7.5 million investment is matched by the ICASA participants for a total investment of $15 million in antimicrobial stewardship research. ICASA’s founding participants include: Advanced Animal Diagnostics, the Beef Alliance, Cactus Research, the Foundation for Food and Agriculture Research, HyPlains Research and Education Center, JBS USA, McDonald’s, the National Cattlemen’s Beef Association, the National Pork Board, the Noble Research Institute, Pipestone Veterinary Services, Tyson Foods, US Roundtable for Sustainable Beef and Veterinary Research and Consulting Services.