Thursday June 18 Ag News

Rural Mainstreet Index Climbs for June: One-Third of Bankers Report Ethanol Plant Shutdowns

The Creighton University Rural Mainstreet Index (RMI) increased to a weak level from May’s feeble reading. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, June’s reading represented the third straight month with recessionary economic conditions.    

Overall: The overall index for June climbed to 37.9, well below growth neutral, but up from May’s 12.5 and April’s record low 12.1. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Even with a slight recent rebound in prices, farm commodity prices are down by 7.3% over the last 12 months. As a result, and despite the initiation of $16 billion in USDA farm support payments, only 3% of bankers reported positive economic growth,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

This month bank CEOs were asked the current operation status of ethanol plants in their area. Almost one-third of bankers with local ethanol plants reported current production shutdowns, either permanent and temporary.

Farming and ranching: Farmland prices continue to slide, but at a slower pace, with a June reading of 46.8 up from May’s 39.7. This is the 78th time in the past 79 months the index has been below growth neutral.

The June farm equipment-sales index increased to a weak 32.8 from 21.9 in May. This marks the 81st straight month the reading has remained below growth neutral 50.0.

Banking: Borrowing by farmers expanded for June, but at a slower rate than in May. The borrowing index fell to 63.6 from May’s 72.2. The checking-deposit index declined to 77.3 from May’s 86.1, while the index for certificates of deposit and other savings instruments increased to 51.5 from 48.6 in May.    

More than one-fourth, or 27.3%, of Rural Mainstreet Bank CEOs expect farm loan defaults/foreclosures to be the greatest economic challenge for their area of the next 12 months.
 
Below are the state reports:
Nebraska: The Nebraska RMI for June jumped to 41.8 from 10.0 in May. The state’s farmland-price index rose to 49.1 from last month’s 38.5. Nebraska’s new-hiring index vaulted to 59.4 from May’s 7.2. Compared to 12 months ago, employment in urban areas of the state, was down by 8.6%, while jobs for rural areas of the state were down by 6.5%.

Iowa: The June RMI for Iowa increased to 39.4 from May’s 8.2 Iowa’s farmland-price index grew to 48.3 from May’s 37.9. Iowa’s new-hiring index for June climbed to 51.9 from 19.4 in May.  Compared to 12 months ago, employment in urban areas of the state, was down by 13.2%, while jobs for rural areas of the state were down by 10.9%. According to James Brown, CEO of Hardin County Savings Bank in Eldora, “We are closely monitoring the conditions in the ag sector to be sure we are adequately funded in our loan loss reserve.”

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities, and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. 

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Funding approved for watershed projects across Nebraska

The USDA Natural Resources Conservation Service (NRCS) announced that five Natural Resources Districts in Nebraska received over $4.5 million in Watershed Flood Prevention and Operations (WFPO) funding. This funding will be directed towards developing watershed plans in the following NRDs:  the Upper Niobrara-White NRD in Chadron, the Middle Niobrara NRD in Valentine, the Central Platte NRD in Grand Island, the Lower Big Blue NRD in Beatrice, and the Lower Elkhorn Natural Resources District (LENRD) in Norfolk.

The LENRD received the WFPO funding to complete the Maple Creek Watershed Plan which will evaluate potential flood prevention, watershed protection, and agricultural water management projects.

Nebraska State Conservationist Craig Derickson said, “We look forward to working with these Natural Resources Districts on these new watershed projects. We saw how established watershed projects sprang into action last spring, following the bomb cyclone, reducing flood damages and protecting natural resources. These new projects plan to provide more benefits to more areas across Nebraska.”

LENRD General Manager, Mike Sousek, said, “This plan aims to reduce overall flood risk potential and support the largely agricultural economy in the Maple Creek Watershed.  With the help of the WFPO funding, this project will surpass previous planning efforts by focusing on the entire area, where previous studies have been smaller in scope.”

Four communities are located within the Maple Creek Watershed:  Leigh, Clarkson, Howells, and Nickerson.  The communities and area farmland have a long history of flood damages resulting from large scale watershed discharges and rainfall events.  This plan will help to further define the need for potential flood reduction projects to protect the watershed.



NeFU Foundation Donates to “Pork Cares” Program

Nebraska Farmers Union Foundation announced today they sent the “Pork Cares” project sponsored by the Nebraska Pork Producers Association a $1,000 donation.

The “Pork Cares” program makes it possible for Nebraska pig farmers to donate their pigs to Nebraska food banks.  The donated pigs are processed by the Loeffel Meat Laboratory at the University of Nebraska-Lincoln on East Campus.  The USDA inspected Laboratory has opened up to process and package 12 donated pigs a week to help meet the growing demand for food banks and food pantries. Nebraska food banks are helping get needed and appreciated pork into the hands of those in need.

The NeFU Foundation donation will be used to help cover the costs for transportation and processing of the donated pork to the food banks and pantries.

“The ‘Pork Cares’ program accomplishes a double benefit. First, it reduces the number of pigs that farmers might otherwise be forced to euthanize because of the decrease in meat processing capacity caused by COVID-19 outbreaks at meat processing plants. Second, it allows those pigs to be donated and processed for food banks that serve people in need across our state.  This program turns two bad outcomes into two good outcomes.  Hogs are not wasted, and hungry people get fed. We thank the Nebraska Pork Producers Association and all their pig producers as well as the University of Nebraska and the Loeffel Meat Laboratory and its staff for making this innovative and positive program possible,” said John Hansen, NeFU Foundation Secretary.

If you would like to donate, go to their website at: https://www.nepork.org/ . Or, you can make your check payable to NPPA - Pork Cares and mail it to:

Nebraska Pork Producers Association
4435 O St, Suite 200
Lincoln, NE 68510

Nebraska Pork Producers Association is a 501(c)5 nonprofit organization and contributions are not tax deductible.



Iowa Beef Producers Launch "Beef Up Iowa" to Help Feed Iowans

Iowa Gov. Kim Reynolds, Lt. Gov. Adam Gregg and Secretary of Agriculture Mike Naig today announced the Beef Up Iowa program to connect Iowa beef producers with food insecure Iowans. The program is a partnership with the Iowa Department of Agriculture and Land Stewardship, Iowa State University and Iowa’s beef producers, and is an initiative of Gov. Reynolds’ Feeding Iowans Task Force led by Lt. Gov. Adam Gregg.

Through Beef Up Iowa, students and staff at Iowa State University will process cattle from Iowa beef producers who have limited processing options due to the COVID-19 pandemic. The meat will be distributed to food bank and food pantry feeding programs across the state. The initial cattle for Beef Up Iowa will be sourced from Iowa 4-H and FFA members.

“From family farms to the grocery store shelves, to our family’s dinner table, our entire food supply chain has been impacted by COVID-19,” said Gov. Reynolds. “Beef Up Iowa brings high quality, nutritious beef to families in need of food security. I want to thank Iowa’s beef producers and generous members of the community who are all stepping up to help Iowans in need.”

“Once again the Feeding Iowans Task Force has found a creative way to help food insecure Iowans by leveraging Iowa’s extensive agricultural ties and developing mini-supply chains,” said Lt. Gov. Adam Gregg. “The Beef Up Iowa program is particularly important to me in light of my family’s ties to the beef industry.”

“The COVID-19 pandemic has shined a spotlight on the importance of Iowa agriculture and how our agriculture community continues to rise to the challenge of feeding those in need,” said Secretary Naig. “This program is a unique opportunity to deliver beef raised by 4-H and FFA members and processed by Iowa students to feeding programs across the state.”

Beef Up Iowa will officially begin when the first cattle are delivered on July 1. Processing will continue through the summer and for as long as funds remain. The beef will be distributed through the Iowa Food Bank Association and the six Iowa food banks that service the state.

Dr. Dan Thomson, chair of the Department of Animal Science at Iowa State University, said the program is based in service and in line with the university’s land grant mission.

“We are pleased to partner to serve Iowans in need,” said Thomson. “We have faculty, staff, and students involved in the process. A program like this not only allows us to serve our neighbors, it also offers hands-on learning to future meat scientists who may be inspired to open their own processing facilities in the future.”

How to Get Involved
Iowa food banks and food pantries have seen increased demand due to the pandemic while processing options for Iowa beef producers have decreased. Gov. Reynolds has allocated federal CARES Act funds from the state to help cover processing costs and provide beef to food insecure Iowans. However, there are costs associated with purchasing cattle, and the storage, transportation and delivery of the beef to food banks and pantries.

To donate funds to help support this program, visit the Iowa Cattlemen’s Foundation at donorbox.org/beefupiowa.

A summary of food resources available to those in need is available at coronavirus.iowa.gov.



Beef Quality Assurance Trainings Gradually Resume in Northwest Iowa

While COVID-19 has changed many things, major packers still require a current Beef Quality Assurance certificate from feedlot producers selling market-ready cattle. Beth Doran, beef specialist for Iowa State University Extension and Outreach, said that’s why a set of certification workshops has been planned for northwest Iowa producers starting in early July.

“Five workshops will be offered in northwest Iowa to help producers renew an expiring certificate or acquire a new certificate,” Doran said. “We want to be sure opportunities are available for producers to be certified.”

The workshops are a collaborative effort of ISU Extension and Outreach, the Iowa Beef Center and the Iowa Beef Industry Council, and are scheduled for the following dates and locations.
    July 9, 7-9 p.m., Spencer, 4-H Exhibits Building, Clay County Fairgrounds; RSVP to 712-262-2264.
    Aug. 4, 1-3 p.m., Orange City, ISU Extension and Outreach Sioux County, Basement Meeting Rooms 2 & 3; RSVP to 712-737-4230.
    Aug. 5, 10 a.m.-noon, Orange City, ISU Extension and Outreach Sioux County, Basement Meeting Rooms 2 & 3; RSVP to 712-737-4230.
    Aug. 11, 10 a.m.-noon, Rock Rapids, Forster Community Center; RSVP to 712-472-2576.
    Aug. 26, 10 a.m.-noon, Le Mars, Convention Center (Lower Level); RSVP to 712-546-7835.

Due to COVID-19 restrictions, preregistrations will be taken in the order received until room capacity is reached. Preregister no later than the Friday before the workshop you plan to attend. Walk-ins will not be allowed.

“We will implement extra measures to protect the health of all participants including social distancing, face masks for all, hand sanitizing stations, and materials/refreshments at each chair,” Doran said. “But, we also rely on each participant to evaluate their personal health before attending.”

Participants should not attend if they do not feel well, have COVID-19 symptoms or have been exposed to someone testing positive for COVID-19 within 14 days of the workshop. 

For more information, contact Doran by email at doranb@iastate.edu or phone at 712-737-4230. Registrants will be contacted should COVID-19 modify, change or cancel a workshop.

Those unable to attend an in-person workshop may complete their training online at https://bqa.beeflearningcenter.org/.



Options for Iowa State Fair 4-H Livestock Shows and Events Announced

The Iowa State Fairgrounds will host a Fair Special Edition: Iowa 4-H and FFA Livestock Show this summer, following the postponement of the 2020 Iowa State Fair.

The revised schedule for 4-H livestock shows will be spread out over three weeks and held Thursday through Saturday – Aug. 6-8, 13-15 and 20-22.

Due to safety concerns, there will be no in-person static exhibits or judging held on the Iowa State Fairgrounds this year. Virtual alternatives for those activities are still being considered and details will be released soon.

To limit attendance at livestock shows, youth exhibitors will be allowed to bring only two people with them. All attendees and exhibitors will be required to wear a wristband. The Iowa State Fair will sell wristbands to the public and will cap the number sold at 1,000.

“We can’t thank the Iowa State Fair Board and staff enough for their support and cooperation to provide an exhibition opportunity for our 4-H youth livestock members,” said Debbie Nistler, Iowa 4-H state program leader for Iowa State University Extension and Outreach. “The life skills these young people gain from their livestock project experience is invaluable and the Iowa State Fair is the culmination of that experience.”

To protect the health and safety of everyone, this Special Edition show will follow all Iowa Department of Public Health and CDC recommendations for social distancing, handwashing and sanitization.

Information for 4-H families and youth exhibitors can be found on the Iowa State Fair 4-H Livestock page at https://www.extension.iastate.edu/4h/statefair/livestock.

For more information on the Iowa 4-H Youth Development program, please contact your county ISU Extension and Outreach office or visit the Iowa 4-H website at www.extension.iastate.edu/4h.



Growth Energy Condemns Oil Industry Plan to Rewrite History

Under mounting pressure from rural lawmakers and industry champions led by Growth Energy, the Environmental Protection Agency (EPA) today confirmed its consideration of 52 new so-called ‘gap-filing’ exemptions from the nation’s biofuel laws. According to the agency’s newly updated dashboard, oil companies have requested retroactive small refinery exemptions (SREs) covering periods as far back as 2011. The “gap-filings” are designed to reconstitute a continuous string of exemptions in an effort to circumvent court limits on new oil industry handouts at the expense of farmers and biofuel producers.

“This absurd maneuver is a blatant attempt to dodge the law at the expense of rural communities,” said Emily Skor, CEO of Growth Energy. “EPA’s dashboard confirms that the refiners hope to rewrite years of history, just to bypass the 10th Circuit Court and push more biofuels out of the marketplace. It’s an insult to American farmers, biofuel workers, and to rural families struggling to rebuild in the wake of COVID-19 after years of regulatory abuse.
 
“EPA should reject this attempt to game the system. The last thing farm states need is another long legal battle fueling uncertainty in the agricultural supply chain. We agree wholeheartedly with Senator Grassley, who called on regulators to ‘publicly dismiss these ridiculous petitions as soon as possible.’”




EPA Considering 52 “Gap Year” Refinery Waiver Petitions; RFA Responds

In response to rising public outcry for greater transparency, the U.S. Environmental Protection Agency today disclosed that 52 new petitions have been received from small refineries seeking retroactive exemptions from their Renewable Fuel Standard requirements in 2011-2018. According to the Renewable Fuels Association, refiners are filing these “gap year” waiver petitions as part of a cynical scheme to circumvent the recent Tenth Circuit Court decision. In its January decision, the court overturned three exemptions and set a precedent for significantly curtailing the waivers going forward.

“Just when we thought we’d seen everything, the refiners have come up with another new scam to undermine the RFS. This ‘gap year’ waiver ploy is as surreal as it is appalling, and certainly the courts would frown upon EPA flouting another unequivocal decision,” said RFA President and CEO Geoff Cooper. “It is beyond absurd that refiners who didn’t even ask for an exemption or claim hardship in the past are now asking for waivers dating all the way back to 2011. EPA should swiftly deny these waiver requests and immediately adopt the Tenth Circuit decision nationwide. The agency should stop trying to rewrite history and start trying to follow the law.”

In ruling on a petition filed by the Renewable Fuels Association, National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol, a panel of Tenth Circuit Court judges unanimously found on January 24 that EPA had exceeded its authority in granting certain exemptions. The court ruled that EPA may only consider granting waivers to refiners who have received continuous extensions of their exemptions each compliance year. The judges also said EPA may only grant waivers to refiners who demonstrate the RFS itself is the cause of “hardship,” not some other factor, and noted that EPA’s own analysis shows that refiners pass compliance costs on to their customers. EPA’s own data show that no more than seven small refineries could have possibly received continuous extensions of their exemptions. Yet, EPA has recently granted as many as 35 exemptions in a single year.

Now, in a brazen attempt to get around the court decision, refiners are requesting exemptions for past years so that they may claim they are eligible for future waivers because their exemption was “continuously extended” by EPA. RFA first exposed the “gap year” plot in a letter to Administrator Wheeler on May 22, and called on EPA to reject the secretive waiver requests outright. The Tenth Circuit petitioners—RFA, NCGA, NFU and ACE—and other groups sent another letter to EPA later, requesting specific information about the “gap year” petitions.

Refiners are apparently attempting to justify the “gap year” waivers by suggesting the statute allows them to file a petition “at any time.” However, the Tenth Circuit said the phrase “at any time” does not open the door for EPA to grant a petition regardless of when it is received. The court stated that “even if a small refinery can submit a hardship petition at any time, it does not follow that every single petition can be granted.” The court noted the absurdity of a broader interpretation of “at any time,” explaining that “[b]y that logic, the EPA could grant a 2019 petition seeking a small refinery exemption for calendar year 2009 – more than a decade after the fact.”

Approving “gap year” waiver petitions would also contradict EPA’s long-held position that “…petitions be submitted as soon as possible to enable the EPA to conduct its evaluation and issue a decision prior to the…compliance deadline…”

Cooper said granting the “gap year” waivers “would be akin to a principal changing a high school senior’s freshman biology grade from an ‘F’ to an ‘A’ four years later so the student can get into college. It’s cheating—plain and simple. Farmers and biofuel producers in states throughout the Heartland are likely to view the granting of any ‘gap year’ waivers as the last straw in an increasingly tenuous relationship with the administration.”

He also noted a recent comment by Iowa Sen. Chuck Grassley, who said “If the EPA ends up accepting these petitions, not only will they lose again in court, they will risk President Trump’s support in Iowa and other Midwestern states.”



NBB Calls on EPA to Reject "Gap" Small Refinery Exemption Petitions

Today, the National Biodiesel Board called on EPA Administrator Andrew Wheeler to immediately reject the flood of 52 small refinery exemption petitions for compliance years preceding 2019 disclosed today. NBB renewed its request that EPA apply the U.S. Court of Appeals for the 10th Circuit's ruling in Renewable Fuels Association v. EPA to all pending exemption petitions.

Kurt Kovarik, NBB's VP of Federal Affairs, states, "EPA's consideration of small refinery exemption petitions going back to 2011 flies in the face of the recent 10th Circuit decision. By rolling back the clock, there appears to be no length EPA won't go to help refiners undermine the RFS. Make no mistake – this handout to the oil industry comes at the expense of biodiesel producers and soybean farmers across the country, and particularly the Midwest. Allowing these gap filings renders the program completely unpredictable for renewable fuel producers. The agency must immediately reject these petitions to restore confidence that it will abide by the law in administering the RFS."

In a June 1, 2020 letter to Administrator Wheeler, NBB wrote, "EPA's first step upon receiving any petition for a small refinery exemption should be to evaluate its timeliness and validity before transmitting it to the Department of Energy." The letter makes the case that "gap" petitions or resubmissions of previously rejected petitions are inconsistent with the 10th Circuit's ruling.




NCGA Board Elects Edgington to join Organization’s Leadership

The National Corn Growers Association’s Corn Board elected Chris Edgington to become the organization’s first vice president for the next fiscal year, which begins October 1.

“It is an honor and a privilege to be chosen by respected colleagues to help lead NCGA into the future,” said Edgington, who farms in Iowa. “The landscape facing farmers today is constantly evolving and presents new challenges and opportunities rapidly. Only by working collaboratively with our partners in industry, government, and the public can we grow markets for our growing crop. I am excited to be working with our leadership and our partners to develop new, effective ways to ensure a bright future for U.S. corn farmers.”

Edgington raises corn and soybeans along with his dad, brother and son. Chris and his wife, Vanessa, have two children, Alex and Elizabeth. In addition to his row crop operation, he gains insight into livestock through a small business run by his son.

“NCGA’s success has been deeply rooted in the men and women who have stepped forward and volunteered to take so much time away from their operations to serve as leaders for the good of all farmers. Today, the board voiced their faith that Chris will continue this proud tradition of excellence,” said NCGA President Kevin Ross. “His inquisitive nature and constant dedication will serve the organization well in this new leadership capacity.”

On the national level, Edgington chairs the Finance Committee.

On October 1, Ross, of Iowa, becomes chairman, and the current first vice president, John Linder of Ohio, becomes NCGA president. In October 2021, Linder becomes chairman, and Edgington becomes president.



USDA: May Milk Production in the United States down 1.1 Percent

Milk production in the United States during May totaled 18.8 billion pounds, down 1.1 percent from May 2019. Production per cow in the United States averaged 2,011 pounds for May, 31 pounds below May 2019.  The number of milk cows on farms in the United States was 9.37 million head, 37,000 head more than May 2019, but 11,000 head less than April 2020.

IOWA:  Milk  production in  Iowa  during  May  2020  totaled  451million  pounds,  down  2%  from  the previous  May according  to  the  latest  USDA,  National  Agricultural  Statistics  Service – Milk Production report.  The  average number of milk cows during May, at 217,000head, was down 2,000 from both last month and last year.  Monthly production per cow averaged 2,080 pounds, down 20 pounds from last May.



USDA Dairy Safety-Net Program Signup to Begin October 12 for the 2021 Coverage Period

The U.S. Department of Agriculture’s Farm Service Agency (FSA) announces that Dairy Margin Coverage (DMC) safety-net signup for 2021 coverage will begin October 12 and will run through December 11, 2020. DMC has already triggered payments for two months for producers who signed up for 2020 coverage.

“If we’ve learned anything in the past six months, it’s to expect the unexpected,” said FSA Administrator Richard Fordyce. “Nobody would have imagined the significant impact that current, unforeseen circumstances have had on an already fragile dairy market. It’s during unprecedented times like these that the importance of offering agricultural producers support through the delivery of Farm Bill safety-net programs such as DMC becomes indisputably apparent.”

The April 2020 income over feed cost margin was $6.03 per hundredweight (cwt.), triggering the second payment of 2020 for dairy producers who purchased the appropriate level of coverage under the Dairy Margin Coverage (DMC) program. The April margin reflects a more than a $3 drop from the March $9.15 cwt. income over feed cost margin.

As of June 15, FSA has issued more than $100 million in much-needed program benefits to dairy producers who purchased DMC coverage for 2020.

Authorized by the 2018 Farm Bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. Over 13,000 operations enrolled in the program for the 2020 calendar year.



Study Shows EU Intervention Program Wreaked Havoc on Global Dairy Prices; U.S. Groups Call for End to EU Dumping of Dairy Products in International Markets

An economic analysis published today shows the serious impact of the European Union’s Skim Milk Powder (SMP) Intervention Program on the U.S. dairy industry—especially to U.S. farm-gate milk prices—in the years 2016-2019.

The report authors conclude that the United States was “economically harmed by the EU’s Intervention program for SMP” in three ways. First, the EU program depressed the global price of SMP, which lowered U.S. milk prices in 2018 and 2019, contributing to a $2.2 billion loss of U.S. dairy-farm income those years. The EU program also artificially inflated its global export market share, resulting in drastically lower market share for U.S. dairy exporters and other SMP exporters and U.S. dairy export losses of $168 million from 2018-2019. Finally, the analysis shows that when the EU unleashed its stockpile of “Intervention SMP” onto the global marketplace, the disposal of the product had harmful effects on the competitiveness of the United States in historically important export markets including Southeast Asia.

In a letter to U.S. Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue, the leading dairy trade associations in the United States—the International Dairy Foods Association (IDFA), the National Milk Producers Federation (NMPF), and the U.S. Dairy Export Council (USDEC)—point to this economic analysis as proof that the EU’s SMP Intervention program wreaked havoc on the U.S. dairy industry. In their letter, the groups urge the U.S. government to prevent the EU from using future Intervention practices to effectively dispose of publicly stockpiled EU dairy products at discounted prices in the international markets. In May, dairy groups from across the Americas joined to call for an end to the EU Intervention Program. 

“It is time for the EU to stop dumping government-purchased SMP on the world market and implementing policies that undermine global dairy markets under the guise of protecting its farmers,” said Michael Dykes, D.V.M., president and CEO of IDFA. “The EU program has harmed U.S. dairy export prospects by artificially inflating the EU’s market share and damaging the competitiveness of the United States in historically important export markets.”

“This report puts into hard numbers the bitter truth that U.S. dairy farmers already know: the EU’s dump of intervention stocks onto the world market depressed farm-gate milk prices in the U.S. in 2018 and 2019,” said Jim Mulhern, president and CEO of NMPF. “Now, as farmers and cooperatives are working tirelessly amid a global pandemic to keep an essential food ingredient moving to those markets that need it most, it’s time to do the advance work necessary to ensure we don’t see a repeat of those harmful impacts from EU Intervention policy in the future. The EU SMP Intervention Program needs serious reforms and the Administration should examine the best tools at its disposal to help drive that needed change.”

“Europe’s SMP Intervention Program is just one tool in the EU’s arsenal of destructive trade policies meant to propel their dairy industry forward at the expense of the rest of the world. As the global dairy market reels from unprecedented disruption, and the consequences of the use of this EU policy to disrupt trade have become much clearer, it’s essential to drive forward reform of this program. Looking ahead, if the EU is allowed to again dump government stockpiles on the world market, it will harm U.S. farmers and processors and erode efforts to advance fair trade policies that create greater market access for U.S. dairy,” said Tom Vilsack, president and CEO of USDEC.

The EU tripled the annual ceiling of SMP Intervention purchases in 2016 from 109,000 metric tons (MT) at the beginning of the year to 350,000 MT by June 24, 2016. The EU continued its Intervention Program, accumulating the equivalent of 16 percent of the global market in government storage. As global SMP demand began to improve in 2018, the EU released its stockpile of SMP onto the commercial market. During the 18-month period from January 2018 to June 2019, the EU sold, via a tendering process, 379,453 MT of Intervention product, depressing global prices for SMP below what they otherwise would have been. The EU government implemented no restrictions to prevent the product from entering the global market. The SMP Intervention product entered export channels since the domestic market was not capable of handling this volume without an adverse impact on the domestic price of SMP, and hence the farm-gate milk price. Instead, the negative impacts were felt by others, including U.S. farmers and exporters, in 2018 and 2019.

The economic impact analysis, “Impact of the European Union’s SMP Intervention Program on the United States: 2016-2019,” was written by Kenneth Bailey, Ph.D. and Megan Mao, B.S., from Darigold, a wholly owned subsidiary of the Northwest Dairy Association based in Seattle, Wash.

The United States is now one of the world’s top dairy exporters, shipping high-quality, wholesome, nutritious dairy products to consumers in more than 140 countries. In 2019, U.S. dairy exports were valued at more than $6 billion, according to USDEC, an increase of 8 percent from 2018. U.S. export volumes of SMP/Non-Fat Dry Milk (NFDM) topped 700,000 tons for the second straight year in 2019.

Driven by greater global dairy demand, U.S. dairy exports have nearly tripled since the early 2000s, and the United States is now the world’s third-largest dairy product exporter behind New Zealand and the European Union (EU). As the global population continues to grow and consumers everywhere purchase more delicious dairy products to consume inside and outside of the home, the U.S. dairy industry will continue to advocate for a rules-based system of free trade that provides greater certainty and eliminates barriers for American producers and processors. This report concludes that the United States and other exporters are harmed when publicly stockpiled product accumulates and is disposed of on the global market.



Organic Farmers Association Calls Out USDA for Letting Down Organic Dairies

Today, Organic Farmers Association (OFA) delivered a letter to members of Congress asking them to ensure that the USDA’s National Organic Program (NOP) comply with the law and finalize the Origin of Livestock rule as soon as possible.

Yesterday, July 17, 2020, was the deadline Congress set for the NOP to finalize the long-awaited Origin of Livestock rule.  This rule is necessary to close a loophole in organic dairy standards that has supported the rapid growth of large organic dairies and consequently put family organic dairy farmers out of business across the country.

The letter, signed by 70 organic farm organizations from across the nation, strongly urged members of Congress, including members of the House and Senate Agriculture Committees, to pressure the USDA to make sure that the NOP complies with Congress’ mandate and finalizes the origin of organic livestock rule as soon as possible.  “The organic community is united in the immediate need for this rule.  We are disappointed this long-awaited deadline has passed without action from the NOP,” says Kate Mendenhall, Director of Organic Farmers Association.

“We have already lost many family organic dairies over the past few years as a result of this loophole and many more are suffering economic hardship.  The new rule won’t save organic family dairies, but it will sure help level the playing field and provide opportunity for a sustainable future,” says Ed Maltby, Executive Director of Northeast Organic Dairy Producers Alliance (NODPA).  “It is past time for the NOP to finalize the rule and provide much-needed clarity requested by the organic community.”

Congress recognized the need to strengthen the organic dairy standards and included language in the FY 2020 Agriculture, Rural Development, Food and Drug Administration and Related Agency Appropriations bill requiring the NOP to issue a final Origin of Livestock rule within 180 days from the date of enactment.

Continued delays in implementing this rule will prolong the dire economics facing organic dairy farmers, as well as jeopardize consumers’ trust in the organic label. The organic community is gravely disappointed at the lack of attention and priority NOP has put on this issue and demand swift rulemaking and implementation.

Organic Farmers Association and the 70 additional organic farm organizations are united in their request of Congress to hold NOP accountable for bringing equity to the organic dairy standards. 



Americans Support COVID-19 Aid to Farmers; Trust Remains High

Trust in America’s farmers and ranchers remains high amid the devastating blow delivered by the COVID-19 pandemic. A new American Farm Bureau Federation poll shows 84% of Americans trust the nation’s farmers and the same overwhelming majority support financial assistance from the government for farmers struggling to keep from going under because of the pandemic.

“The results of the survey indicate a growing understanding of how important a stable food supply is to the health and well-being of our nation,” said American Farm Bureau Federation President Zippy Duvall. “Shortages at grocery stores and other food supply chain shockwaves caused by the pandemic gave many people a new understanding of the crucial role of America’s farmers and ranchers and the importance of their survival through the COVID-19 economic storm. It is so heartening to know that through it all, the American people’s trust in farmers is unwavering.”

Many struggling farmers were left out of initial federal aid, and some who received assistance are still being hurt by COVID-19 losses. USDA estimates suggest the decline in commodity value alone for 2019, 2020 and 2021 production totals almost $50 billion. This does not include all of agriculture’s losses, which would be billions more.

When the pandemic prompted stay-at-home orders, the market for several crops disappeared almost overnight, causing prices paid to farmers to drop drastically. It came at a time when farmers were already facing economic challenges following two years of trade wars. Farm bankruptcies for the 12-month period ending March 2020 increased 23% from the previous year and are expected to climb higher as a result of the pandemic. Because the pandemic shockwaves continue to cause agricultural losses, the American Farm Bureau Federation is calling on lawmakers to address critical needs that still exist for farmers impacted by COVID-19.

More broadly, the poll also reveals that a majority of Americans, 59%, also believe the federal government should classify U.S. agriculture as a matter of national security to ensure a stable food supply. Addressing agricultural labor shortages, ensuring farm and food worker safety, and protecting trade partnerships to stabilize agricultural markets are all part of prioritizing U.S. agriculture.



ASA Hires Soy Policy Group’s First On-Staff Economist

The American Soybean Association (ASA) is pleased to hire Scott Gerlt, who will be the first person to join the organization in the role of economist. Gerlt, who lives in Missouri, starts July 20 and will be based out of the ASA St. Louis office.

Gerlt is highly regarded within agricultural economist circles for his policy work at the Food and Agricultural Policy Research Institute (FAPRI), where he has more than 10 years of experience including working with policymakers in drafting the 2014 and 2018 farm bills. In addition to his direct work in economic modeling for FAPRI, Gerlt has led research teams on grant projects and teaches undergraduate courses at the University of Missouri.

ASA CEO Ryan Findlay said, “It is exciting for ASA to find someone with both Scott’s policy experience and enthusiasm for working directly with farmers. Scott clearly believes in ASA’s mission and will be a great addition to our team."

Gerlt* grew up on a diversified farm with both row crops and livestock near Latham, Missouri. His love of math, economics and agriculture has been influential in forming his career path. In his role, Gerlt will provide insight on relevant agricultural economics and analysis of current and future ASA policy. The organization expects this position will also provide clarity to what ASA is requesting of policymakers and how it may impact U.S. soybean farmers and their communities.

Of hiring the association’s first internal economist, Findlay responded, “Having an economist on staff will enrich our internal discussion on issues and strengthen our public arguments for why policymakers need to take action on behalf of U.S. soybean farmers.”



National FFA Organization Celebrate 2020 Graduates Through Forever Blue Network

This spring, the National FFA Organization introduced a new online network to connect former FFA members and its supporters.

The FFA Forever Blue Network, is a professional and personal development platform that allows former FFA members and supporters of FFA to find ways to volunteer, serve as a mentor, post-career opportunities and much more. It enables users to network and share with one another ways in how to connect with local chapters as well as help each other out.

Now, the network is celebrating the newest FFA alumni members – the class of 2020, through the Grad2020 group. This group was designed to recognize this year’s high school and college seniors by sharing messages of support and providing a space for seniors to share their favorite memories of FFA.

Members of the Forever Blue Network can participate in this group and celebrate those graduating in 2020. This year’s graduates can post their senior pictures, pictures with their blue and gold, favorite FFA experiences, favorite FFA friends, favorite memories and more.

“We’re excited to celebrate our members who have graduated this year,” said Joshua Rusk, executive director of National FFA Alumni & Supporters. “Forever Blue Network allows our future leaders to connect with our current leaders within the agricultural industry and beyond and, through the Grad2020 group, we are able to celebrate our graduates while acknowledging their success.”

The National FFA Organization provides leadership, personal growth and career success training through agricultural education to more than 700,000 student members who belong to one of the more than 8,600 local FFA chapters throughout the U.S., Puerto Rico and the U.S. Virgin Islands. The organization is also supported by more than 8 million alumni and supporters throughout the U.S.