Tuesday June 2 Ag News

Renewable Fuels Month spotlights benefits of homegrown fuel options

May is typically the kick-off to the summer driving season and has historically been a time Nebraska’s renewable fuels industries have come together to highlight the importance of clean-burning biofuel options. However, due to COVID-19 concerns, Renewable Fuels Month was postponed and will be celebrated throughout June 2020. To help promote locally-produced biofuels, such as ethanol and biodiesel, Nebraska Gov. Pete Ricketts recently declared June as Renewable Fuels Month. Since 2006, the acting Nebraska governor has dedicated one month out of each year to serve as a public awareness campaign.

“As a farmer who grows corn, soybeans and raises livestock, I understand the importance of biofuels to the agricultural industry,” said David Bruntz, chairman of the Nebraska Corn Board and farmer from Friend. “While ethanol and biodiesel have greatly helped add value to Nebraska’s corn and soybean crops, these renewable fuels also benefit consumers. They’re typically less expensive, high performing and better for the environment.”

The environmental benefits of ethanol and biodiesel are particularly important this year, as new scientific research from Harvard University has shown patients with COVID-19 were more likely to die in areas of high pollution than in areas of low pollution. U.S. Department of Agriculture research shows ethanol emissions are up to 43% less compared to gasoline without ethanol, a statistic that has continued to improve.

“There are some people who choose not to use ethanol based off of misinformation they may have heard in the past,” said Jan tenBensel, chairman of the Nebraska Ethanol Board and farmer from Cambridge. “All I can say is to try a higher blend. If you have any vehicle model year 2001 and newer, your vehicle is approved for at least a 15% ethanol blend, sometimes called Unleaded88. E15 is the most tested fuel ever. Also, check your owner’s manual. You might have a flex fuel vehicle, which can use any ethanol blends up to 85% (known as E85). The higher the blend used, the more money saved and the fewer toxic chemicals emitted from the tailpipe.”

Nebraska is often known for its “golden triangle” of agriculture, referring to the close proximity and synergies achieved through the state’s corn, ethanol and livestock production sectors. As the nation’s second largest ethanol producing state, nearly 2.1 billion gallons of ethanol and about 6.4 million metric tons of distillers grains (high protein livestock feed) are created each year from Nebraska’s 25 ethanol plants. Additionally, ethanol production boosts Nebraska’s rural economy by employing over 1,400 people.

Biodiesel is another important biofuel which supports the state’s soybean farmers and provides health benefits to the general public. Biodiesel is a clean-burning fuel made from soy oil and other renewable resources. It offers fuel economy, horsepower and torque similar to petroleum diesel, but with fewer harmful effects on diesel engines, the environment and human health. In fact, biodiesel lowers particulate matter by 47% and reduces smog, making air cleaner.

Biodiesel, renewable diesel and renewable jet fuel are low-carbon fuel options used on road, off road, in air transportation, electricity generation and home heating applications. Usage will exceed 6 billion gallons by 2030, eliminating over 35 million metric tons of CO2 equivalent greenhouse gas emissions annually.

“Biodiesel has tremendous human health benefits, but it also makes economic sense,” said Eugene Goering, chairman of the Nebraska Soybean Board and farmer from Columbus. “Not only is biodiesel adding 63 cents per bushel to the value of soybeans, but it also helps livestock producers because it decreases soy protein meal costs. This advanced biofuel is responsible for over 60,000 jobs across the country which supports the American economy.”

Throughout June, follow the Nebraska Corn Board, the Nebraska Ethanol Board, the Nebraska Soybean Board and Renewable Fuels Nebraska on Facebook for additional facts and statistics on ethanol and biodiesel. These Facebook pages will also feature trivia promotions, contests and up-to-date information regarding upcoming fuel promotions.

Consumers looking for higher ethanol blends can visit getbiofuel.com or UNL88.com. Biodiesel information and locations can be found at biodieselNE.com and biodiesel.org.



NCLA Takes USDA to Task over Unlawful Agency Adjudication Procedures that Violate Civil Liberties

The New Civil Liberties Alliance, a nonpartisan, nonprofit civil rights group, has filed a complaint and a motion for preliminary injunction in the U.S. District Court for the District of Nebraska. The case, Kevin Gubbels (Norfolk, NE) and Insure My Honey, Inc. v. U.S. Department of Agriculture and the U.S. Risk Management Agency, was filed against the U.S. Department of Agriculture (USDA), the U.S. Risk Management Agency (RMA), and the respective heads of those entities.  Gubbels is contesting those agencies’ efforts to suspend and debar his participation in the federal crop insurance program without a hearing.

RMA’s action risks destroying a recently thriving business, and it has already put over 60 insurance agents out of work based on a hearsay complaint without giving the business a chance to contest the accusation at a hearing. Even if Mr. Gubbels is eventually granted a hearing, the process will be anything but fair, as the existing regulations consolidate the roles of both prosecutor and judge in the agency head. This in-house administrative adjudication makes a mockery of due process, and it has seriously threatened Mr. Gubbels’s livelihood.

In November 2019, an unknown tipster told RMA (the agency that administers the crop insurance program) that Mr. Gubbels was selling crop insurance policies after the deadline for doing so. USDA, acting through RMA, indefinitely suspended Mr. Gubbels, unlawfully claimed the authority to suspend Insure My Honey, Inc.—which is a distinct corporate entity, and suspended all of the independent contractor insurance agents from participating in the company’s business of selling and servicing federal crop insurance policies.

But these agencies did not follow their own regulations or comply with basic constitutional protections before imposing the order. First, they failed to provide adequate notice of specific charges against Mr. Gubbels that could serve as a lawful basis for that suspension and proposed debarment. Second, the agency has allowed a temporary “suspension” order to linger for months without providing Mr. Gubbels a hearing to contest the charge. These actions have shut down his business, and that of his insurance agents, with no due process.

Every day the suspension lingers, the financial damage increases. Administrator Barbre has already shown his unwillingness to be an impartial adjudicator. Mr. Gubbels has already been presumed guilty and has never been given the chance to clear his name. Not only does this action violate the applicable regulations, it violates the outer limits of procedural due process.

NCLA released the following statements:
“There is a reason that we have constitutional procedures in place to protect the rights of individuals and small businesses who contract with the government to provide important services to our agriculture community. It is to prevent federal employees from arbitrarily destroying their livelihood while also blocking them from defending themselves. Mr. Gubbels is entitled to tell his side of the story, regardless of whether USDA and the Risk Management Agency want to hear it.”
—Harriet Hageman, Senior Litigation Counsel, NCLA

“A bureaucrat shouldn’t have the power to arbitrarily shut down a thriving business. That’s what due process is supposed to protect against. This lawsuit will ensure that ‘agency adjudication’ can no longer be code for depriving people of basic liberties.”
—Caleb Kruckenberg, Litigation Counsel, NCLA

NCLA is a nonpartisan, nonprofit civil rights group founded by prominent legal scholar Philip Hamburger to protect constitutional freedoms from violations by the Administrative State. NCLA’s public-interest litigation and other pro bono advocacy strive to tame the unlawful power of state and federal agencies and to foster a new civil liberties movement that will help restore Americans’ fundamental rights.



Nebraska Farm Bureau Announces 2020-2021 Class of The Crew

Nebraska Farm Bureau (NEFB) has identified six social media savvy student members to join The Crew. The Crew participants share their love of agriculture through social media and are selected from NEFB’s student members, who range in age from 16 to 23. Each member is selected in the spring and participates for one year.

The 2020-2021 class of The Crew represents county Farm Bureaus from across the state. They are; Jaycee Lapp and Abbie Brott of Hayes County; Emma Goosic, of Kearney/Franklin County; Makenna Eisenzimmer of Keith County; Abby Scholz of Phelps/Gosper County; and Abigail Lutjelusch of Colfax County.

“Nebraska Farm Bureau places high priority on training the next generation of agriculture leaders as part of our strategic plan. In coordination with NEFB student membership, The Crew  provides an added benefit of being a student member and an opportunity to gain hands-on agriculture communications experiences. We are proud of this program and the growth it has shown,” said Audrey Schipporeit, Nebraska Farm Bureau director of generational engagement.

The ideal Crew member looks like this:
    Supports and amplifies Nebraska Farm Bureau’s messaging.
    Creates original content to portray accurate agriculture messages.
    Participates in facilitated learning sessions from industry professionals.
    Leads social media advocacy for their generation.

“During their year-long experience, Crew members, who come from across the state, work toward a series of milestones centered on social media sharing. In addition, they write a blog posts each for Nebraska Farm Bureau’s Stories From the Field blog and attend ‘field days’ during which they gain hands-on agriculture communication experience and learn real-world applications of communication practices. We encourage folks to follow along this year as these students bring to life rural America through their work on social media. Check out #neagcrew on Facebook, Twitter and Instagram,” Schipporeit said.



IDALS Hires Assistant State Veterinarian to Focus on Livestock Care

Iowa Secretary of Agriculture Mike Naig announced today that Troy Brick, DVM, MS, has been hired as an assistant state veterinarian at the Iowa Department of Agriculture and Land Stewardship. Dr. Brick will oversee livestock regulatory programs and help support the state veterinarian, Dr. Jeff Kaisand.

“As part of my first term, I conducted a thorough review of the Department’s programs and recognized we needed additional veterinary resources to support Iowa’s robust animal industry,” said Secretary Naig. “Since 2018, the Department has added veterinarians to strengthen our foreign animal disease response plans and companion animal programs. Now Dr. Brick brings teaching, research and private practice experience. The Department has built a well-rounded team of animal health experts to better serve livestock producers and companion animal license holders around the state.”

Dr. Brick joins the Department from the Iowa State University College of Veterinary Medicine where he led the food animal veterinary field services unit as an assistant professor of veterinary diagnostic and production animal medicine.

“COVID-19 and the threat of transmissible and foreign animal diseases has made this a very active time in food animal veterinary medicine,” said Dr. Brick. “I am fortunate to have been asked to join such an experienced and educated team of animal health professionals to assist the livestock industry in navigating these challenging times.”

Earlier in his career, Dr. Brick taught veterinary preventative medicine and large animal internal medicine at The Ohio State University. He also spent two years teaching large animal medicine and surgery at St. George’s University in Grenada, West Indies.

Prior to teaching, Dr. Brick worked as a large animal veterinarian in a private, mixed animal practice in northwest Iowa.

Dr. Brick completed his undergraduate coursework at Northern State University, received his DVM from Iowa State University, and earned a master’s degree from The Ohio State University.



SIRE Expands Monarch Habitat Project

Having just passed the anniversary of seeding their Monarch Fueling Station, Southwest Iowa Renewable Energy (SIRE) recently took steps to dramatically expand the scope of the ethanol plant’s monarch habitat project for a total of 20 acres.

The 20 acres are all inside SIRE’s loop railroad track, which would otherwise be filled with grass.

“Southwest Iowa Renewable Energy is committed to finding ways to innovate and that commitment doesn’t stop with the plant itself,” said SIRE CEO Mike Jerke. “Creating habitat for monarch butterflies and other pollinators inside our loop track, with area we previously would have considered unusable, seemed like a great way for us to innovate the use of our land around the plant.”

SIRE began its Monarch Fueling Station in 2018 and seeded an initial seven acres last spring. Iowa Renewable Fuels Association (IRFA) Habitat Establishment Coordinator Kevin Reynolds helped SIRE start their project.

“SIRE’s decision to expand their project is indicative of just how committed they are to protecting Iowa’s environment,” Reynolds said. “I have worked with several biofuel plants across Iowa now and it is exciting to see the enthusiasm they’ve had for creating and protecting this critical monarch butterfly habitat.”

Reynolds said SIRE would have seen some greenery popping up among the initial seven acres last year, but most of the growth would have occurred under the ground as the plants must develop a strong root system. He said the plant can expect the same growth pattern for the newly planted acres while the original acres should expand above the ground even more this growing season.

The Monarch Fueling Station Project was established by IRFA in partnership with the Iowa Monarch Conservation Consortium in December 2017. It is a program to help Iowa’s ethanol and biodiesel plants establish patches of monarch habitat on plant grounds. To learn more about the IRFA Monarch Fueling Station Project, contact IRFA at info@IowaRFA.org or 515-252-6249.



Iowa Leaders Petition USDA to Provide CFAP Funds for Egg Producers

In a letter sent to Secretary Sonny Perdue today, U.S. Senators Chuck Grassley and Joni Ernst, Iowa Gov. Kim Reynolds, and Iowa Secretary of Agriculture Mike Naig asked the United States Department of Agriculture (USDA) to include egg producers in the Coronavirus Food Assistance Program (CFAP).

The Iowa leaders wrote in part, “COVID-19 has impacted our Iowa farmers, including our egg producers, whose eggs were destined for the liquid egg market. Because of the massive damage done to this industry as restaurants, schools, and other egg-buying businesses have closed over the past few months, we write today in support of their inclusion into the CFAP to keep these producers afloat until the pandemic abates.”

With nearly 70 percent of Iowa’s layer flocks producing for the liquid egg market, the COVID-19 market disruption has proved to be devastating to Iowa’s egg producers.

“I’m glad USDA has said payments to farmers will begin under the Coronavirus Food Assistance Program. Market disruptions have negatively impacted almost all operations in Iowa, including egg producers. The liquid egg market saw a 68 percent price decline as sales to restaurants and hotels dried up during the COVID-19 pandemic. I’m glad to join Governor Reynolds, Senator Ernst and Iowa Secretary of Agriculture Naig in this effort to ensure liquid egg producers are kept afloat until the pandemic ends. We appreciate USDA’s willingness to hear from public comment, and welcome an adjustment to the program to allow egg producers to qualify,” said Senator Grassley.

“Iowa's farmers have been doing their part to help our state and nation navigate the effort to defeat COVID-19, and our egg producers are no different. Much of our state's egg production supports our commercial food service, and while many restaurants and other facilities have had to close or limit operations throughout this pandemic, our egg industry has seen a drastic drop in demand and as a result some have had to dump product. These hardworking folks need relief and assistance, and that's what we're fighting for and pushing USDA to provide,” said Senator Ernst.

“As our producers continue doing their part to keep our national food supply chains moving, we must do our part to support their operations,” said Gov. Reynolds in her message to Secretary Sonny Perdue. “We commend USDA for a number of measures the department has taken to facilitate the flow of food to people who need it through the network of food banks and pantries.”

“We are grateful to the Trump administration and USDA for the relief the CFAP has provided to our crop and livestock producers,” said Secretary Naig. “Egg producers should also be included in the program since they have been greatly impacted and play a key role in our food supply and state economy. We must support them throughout these ongoing market disruptions.”

Iowa is home to over 58 million egg-laying hens and about one in six eggs consumed in the United States each year. As an integral part of the state’s economy, the egg industry is responsible for as much as $2.6 billion in total economic activity, supporting 7,084 jobs and directly employing 2,398 people.



Barchart Releases Initial U.S. Yield Forecasts for Corn and Soybeans

Barchart, a leading provider of data and technology services to the financial, media, and commodity industries, announces their initial cmdty Yield Forecast for end of season yield at 172.4 bu/ac for corn and 48.8 bu/ac for soybeans in the U.S. Released for free to the public on the first Tuesday of each month during the growing season, and available to clients through daily updates, the cmdty Yield Forecast Index series allows users to get insights to guide their business decisions ahead of the USDA’s WASDE report.

“We’re focused on providing insights to the global ag community and by making our forecast for U.S. yield available to the public we can help level all users make better grain marketing decisions,” said Keith Petersen, Head of Strategy at Barchart. “In addition to our monthly public release, we’ll also be previewing each month’s WASDE report with a free livestream containing updated forecasts and insight into what this means for the USDA’s estimates.”

Barchart’s cmdty Yield Forecast Indexes, which correctly predicted 2019 USDA soybean yield figures three months in advance, are calculated using the latest geospatial and remote sensing technology, and provide users with daily insights on over 3,000 individual growing areas in the U.S. The power of this data combined with insights from cmdty’s recently released whitepaper describing how yield forecasts can be used to anticipate USDA estimate revisions, empowers users to improve their crop marketing and underwriting strategies.



State Beef Councils Join with NCBA to Greatly Expand Digital Beef Advertising

                State beef councils around the country are joining forces to invest state-controlled Beef Checkoff dollars in Beef. It’s What’s For Dinner. digital advertising campaigns. These efforts will significantly expand beef promotion in their own states as well as in consumer-abundant U.S. regions. The councils are working with the staff at the National Cattlemen’s Beef Association, a Beef Checkoff contractor, to provide reach to about 70 million consumers, creating more than 733,000 visits to the Beef. It’s What’s For Dinner. website through Google advertising, generating an estimated 56 million national and state video views on YouTube and producing more than 2.3 million radio listens through Spotify.

                Seventeen state councils have instituted “state footprint” media campaigns to feature Beef. It’s What’s For Dinner. advertising within their own states. Four multi-state collaborative media campaigns have also been created, with states focusing on four regions – Southeast, Western United States, Top 5 States and the Midwest – with campaigns targeting beef consumers.

                Avenues selected for the advertising include Google Search Advertising, YouTube Video Advertising and Spotify Audio Streaming Advertising. Google Search Ads deliver hundreds of thousands of consumers to the Beef. It’s What’s For Dinner. website, the Beef Checkoff’s one-stop resource for all things beef. YouTube ads showcase beef through the power of video advertising, inspiring consumers with crave-worthy beauty shots of beef. YouTube is the “new TV,” with the world watching 1 billion hours of YouTube videos daily. Spotify is the world’s largest and fastest growing radio streaming platform, and radio ads on that platform bring to life the sizzling sounds of beef, backed by beef’s signature Copeland Rodeo music.

                States have spent more than $1.1 million in state-controlled checkoff dollars toward the campaigns so far in 2020. Because the NCBA staff has expertise in advertising and marketing, the campaign can efficiently focus more directly on checkoff-funded Beef. It’s What’s For Dinner. digital media related to beef cooking, nutrition and production, helping optimize the campaign. Beef content is also extended and Beef Checkoff funds leveraged, promoting a consistent beef message and strengthening the national and state elements of the Beef Checkoff.

                “Through these campaigns state beef councils can extend both national and state-developed content, leveraging funds from both the national and state halves of the $1-per-head national Beef Checkoff to reach consumers and promote a consistent beef message,” says Buck Wehrbein, a Nebraska cattle feeder and chairman of the Federation of State Beef Councils. “This allows state beef councils to spend their dollars more efficiently, focusing on stories about local producers while expanding distribution of recipes and other national Beef. It’s What’s For Dinner. assets throughout the country. The extension is a great example of how individual state beef councils and the Federation of State Beef Councils partner on projects and efforts that help strengthen beef demand.”

                State beef councils supporting the Beef. It’s What’s For Dinner. media campaign within their states are the Wyoming Beef Council, North Dakota Beef Commission, Nebraska Beef Council, Oklahoma Beef Council, Texas Beef Council, Ohio Beef Council, Wisconsin Beef Council and Washington State Beef Commission. Also the Utah Beef Council, Idaho Beef Council, Iowa Beef Industry Council, Pennsylvania Beef Council, Louisiana Beef Industry Council, Virginia Beef Industry Council, Arizona Beef Council, Kansas Beef Council and Florida Beef Council. In addition, the Northeast Beef Promotion Initiative is participating in the campaign.

                Beef councils supporting digital beef advertising within targeted regions are: North Dakota Beef Commission, Iowa Beef Industry Council, Illinois Beef Council, Wyoming Beef Council and Northeast Beef Promotion Initiative (Top 5 States Media Campaign); Michigan Beef Industry Commission , Missouri Beef Industry Council, Minnesota Beef Council, Iowa Beef Industry Council, Illinois Beef Council, Nebraska Beef Council and North Dakota Beef Commission (Midwest Media Campaign); Oklahoma Beef Council, Iowa Beef Industry Council and North Dakota Beef Commission (Western US States Media Campaign; and Alabama Beef Council, Florida Beef Council, Georgia Beef Board, Kentucky Beef Council, Tennessee Beef Industry Council, Mississippi Beef Council, South Carolina Beef Council and North Dakota Beef Commission (Southeast Media Campaign).



NBB Asks EPA for Transparency on "Gap" Small Refinery Exemption Petitions

Today, the National Biodiesel Board delivered a letter to EPA Administrator Andrew Wheeler asking that he disclose any small refinery exemption petitions for RFS compliance years preceding 2019 that the Environmental Protection Agency received this year. NBB further asks that EPA apply the U.S. Court of Appeals for the 10th Circuit's ruling in Renewable Fuels Association v. EPA to all petitions submitted to the agency since January 24th of this year.

"The U.S. biodiesel and renewable diesel industry values and relies on your commitment to transparency regarding small refinery exemptions," NBB writes, referring to Administrator Wheeler's creation of the EPA Small Refinery Exemption dashboard. Noting that both Wheeler and U.S. Department of Energy (DOE) Under Secretary Mark Menezes responded to questions about "gap" petitions in May 20 testimony before two Senate committees, NBB writes, "It is concerning that no record of any of these petitions exists on the Agency's dashboard."

NBB further writes, "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 lays out arguments that considering "gap" petitions would be inconsistent with the 10th Circuit's ruling, the Renewable Fuel Standard statute, and EPA's own regulations and guidance. "Indeed, allowing gap filings would render the program entirely unpredictable for renewable fuel producers," NBB writes.

Kurt Kovarik, NBB's VP of Federal Affairs, adds, "EPA's small refinery exemption spree over the past three years undermined the RFS and destroyed demand for hundreds of millions of gallons of biodiesel and renewable diesel. The industry has been fighting for years to improve transparency and accountability around these handouts to refiners that come at the expense of small biofuel producers. We are asking EPA Administrator Wheeler to restore confidence in the RFS."



CWT-Assisted Export Dairy Sales in May Nearly Eight Million Pounds

The 40 contracts CWT member cooperatives secured in May added 5.1 million pounds of American-type cheeses, 1.4 million pounds of butter, 456,357 pounds of cream cheese, and 1 million pounds of whole milk powder to total CWT-assisted sales in 2020 This brings the total milk equivalent for the year to 532 million pounds on a milkfat basis. These products will go customers in Asia, Europe, and the Middle East, and will be shipped May through September.

CWT-assisted 2020 dairy product sales contracts total 20.8 million pounds of cheese, 6.2 million pounds of butter, 2 million pounds of anhydrous milkfat (AMF), 2.9 million pounds of cream cheese and 16.8 million pounds of whole milk powder. All this product is scheduled to ship in the first nine month of 2020.

Exporting dairy products is critical during these challenging times to the viability of dairy farmers and their cooperatives across the country.  Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, pasteurized process cheese, or whole milk powder, the moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.



RMA Modifies Dairy Revenue Protection Sales

USDA's Risk Management Agency (RMA) is modifying the sales period over weekends for Dairy Revenue Protection (DRP) because of the high volatility of milk prices. Starting June 5, the sales period will begin no later than 4:30 p.m. Central Time (CT) when the coverage prices and rates are published and will end at 9:00 a.m. CT of the following business day or 9:00 a.m. CT on Sunday, whichever is earlier. The next sales period will begin no later than 4:30 p.m. CT on the following business day. This change only impacts when milk producers can purchase DRP quarterly endorsements, not the timing of indemnity payments. This modification will also be incorporated into the DRP policy for the 2022 crop year.

"The DRP program is an excellent risk management tool for dairy producers, providing peace of mind during unpredictable market fluctuations such as the dairy industry is experiencing now," RMA Administrator Martin Barbre said. "USDA wants to be sure that we make the necessary adjustments to ensure that the Federal crop insurance program continues to serve the risk management needs of our nation's producers during this unprecedented time."

DRP is designed to insure for unexpected declines in the quarterly revenue from milk sales compared with a guaranteed coverage level. The expected revenue is based on futures prices for milk and dairy commodities and the amount of covered milk production elected by the dairy producer. The covered milk production is indexed to the state or region where the dairy producer is located. Dairy producers to date have purchased $11.9 billion of 2020 DRP coverage, with premiums totaling $145.9 million. Total current DRP purchases represent over 25% of the milk likely to be produced in the United States in 2020.

For more information about DRP, visit RMA's website or contact your local crop insurance agent using the RMA Agent Locator.

RMA has announced many other flexibilities starting on March 27. See all RMA Managers Bulletins for more detailed information. RMA staff are working with Approved Insurance Providers and other customers by phone, mail and electronically to continue supporting crop insurance coverage for producers. Farmers with crop insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email).



Depopulation and meat shortages: Answering the tough questions

While many Americans fired up their grills this Memorial Day weekend, some may have found limits on meat purchases, near-empty meat cases or no fresh meat at all at their local grocery stores. At the same time, they see headlines about pork and poultry farmers having to euthanize entire barns of animals. Such a confusing contradiction presents an opportunity for agriculture to engage with consumers on the complexities of the food chain and the emotional toll this current situation is taking on farmers, according to Terry Fleck, executive director of The Center for Food Integrity (CFI).

“The contrast consumers are seeing between the meat case and what’s happening on farms illustrates the unfortunate effects of the pandemic on a complex food system,” said Fleck. “It’s confusing to those on the outside and causing concern and mistrust. That’s why engaging consumers on how meat gets to our tables and explaining the unfortunate necessity of depopulating animals is critical.”   

CFI recently created an animated infographic in partnership with the Iowa Farm Bureau and Illinois Farm Bureau. "Pork, Beef, Chicken: Journey to Your Plate," featured on the website BestFoodFacts.org, details the intricacies of the meat supply chain. Also on the site, “COVID-19 and the Food Supply: Your Questions Answered” addresses questions about the supply chain and food safety.

“These resources help explain a complex supply chain and why the pandemic has wreaked havoc,” said Fleck.

The U.S. has 835 federally inspected livestock plants for beef and pork and nearly 3,000 federally inspected poultry plants. The system can adjust when one or two plants close. However, the impacts from COVID-19 have affected the entire system at unprecedented levels, resulting in temporary shutdowns or reduced operating capacity at many meat and poultry processing plants.

This massive bottleneck has left millions of market-ready pigs and chickens with nowhere to go. Normally, processing plants harvest an average of 500,000 pigs and 24 million chickens per day. As the number of pigs and chickens unable to go to market grows day after day, so too do the animals. They literally outgrow the space that is designed specifically for their comfort and wellbeing.

That has resulted in farmers faced with the heart wrenching decision to euthanize animals that should have gone to market.

For the farmers who’ve committed their lives to the responsible care of animals, putting down healthy animals is devastating, said Fleck. “They dedicate their lives to raising animals to provide food for families in the U.S. and around the world. Depopulating herds and flocks is an unimaginable action that’s done only as a last resort. Failing to depopulate would mean millions of animals kept in conditions that jeopardize their wellbeing.”

Helping consumers understand the supply chain disruption and impacts may seem daunting, but the key is to keep it simple and engage on the shared values of safe food and a commitment to the highest standards of animal care.     

“Talk about how challenging these times are in a reality that can’t be changed,” said Fleck. “That those in the food supply chain are working diligently to keep food on store shelves while keeping employees and the public safe, and how farmers – like others around the world – are in crisis and faced with incredibly difficult decisions.”  

Depopulation is the last resort, but being transparent about the realities of assuring animal wellbeing may bring a new perspective to consumers and help earn their trust, said Fleck.



FDA Takes Action to Increase Supply of Alcohol-Based Hand Sanitizer
Stephen M. Hahn M.D., Commissioner of Food and Drugs - Food and Drug Administration

Today, the FDA has taken additional action to help ensure widespread access to hand sanitizers during the COVID-19 public health emergency. Consumer and health care personnel safety is a top priority for FDA, and an important part of FDA’s mission is to protect the public from harm, including as we seek to increase supply of hand sanitizer. To that end, we have updated our guidances to provide additional clarification on the manufacturing and compounding of certain alcohol-based hand sanitizer products to help ensure that harmful levels of impurities are not present in ethanol used in hand sanitizer.

The FDA appreciates industry’s willingness to help meet the increasing demand for alcohol-based hand sanitizers during the COVID-19 pandemic. Early on during the public health emergency, as demand for alcohol-based hand sanitizer had dramatically increased, we issued temporary policies to provide flexibility to help meet this demand and to help get supply quickly to where it was needed, whether it was for health care professionals or for individuals and their families.

Although it is our understanding that some larger hospital systems have been able to replenish their supply of hand sanitizer, we continue to hear that some smaller hospital systems and outpatient facilities are still experiencing difficulties accessing alcohol-based hand sanitizers. We also recognize that some consumers may not be able to find alcohol-based hand sanitizer in their local area, and, when they do, it is in limited quantities.  Washing our hands with soap and water, for at least 20 seconds, continues to be one of our best defenses to prevent the spread of COVID-19. If soap and water are not readily available, the Centers for Disease Control and Prevention (CDC) recommends consumers use an alcohol-based hand sanitizer that contains at least 60 percent alcohol (also referred to as ethanol or ethyl alcohol).

We previously updated these temporary guidances in April to reflect data submitted by fuel ethanol manufacturers producing ethanol via fermentation and distillation, indicating that at least some of their fuel ethanol products have harmful chemicals, including gasoline and benzene, which are known human carcinogens (cancer-causing agents). These impurities would not be expected from a typical fermentation and distillation process but may be present in the manufacturing environment of fuel or technical-grade ethanol, due to the use of certain chemicals, equipment or containers.

The FDA is working with industry to ensure that harmful levels of impurities are not present if ethanol is used in these products. Based on careful review and consideration of available data, we are specifying interim levels of certain impurities that we have determined can be tolerated for a relatively short period of time, given the emphasis on hand hygiene during the COVID-19 public health emergency and to avoid exacerbating access issues for alcohol-based hand sanitizer.

As with everything we do, the FDA is committed to ensuring that we appropriately balance risk and benefit. We believe that our temporary guidances sets the proper level of flexibility at the current time to help protect Americans during this public health emergency. We do not make any decision lightly and are continually assessing the needs and circumstances related to our temporary policies and how best to protect  public health. As relevant needs and circumstances evolve, the FDA intends to update, modify or withdraw these policies as appropriate.



RFA: FDA Sanitizer Guidance Brings Clarity But Won't Resolve Shortage

The U.S. Food and Drug Administration Monday night issued revised guidance on the production of ethanol for hand sanitizer.  The following is a statement from Renewable Fuels Association President and CEO Geoff Cooper:

“While we appreciate that FDA responded to RFA’s request for more clarity and specific interim impurity limits, we do not believe the new guidance will help alleviate the hand sanitizer shortage in any meaningful way. We welcome the specificity in the new guidance, but the new interim limits for certain impurities are overly restrictive and create a roadblock for producers who could otherwise supply huge volumes of safe, clean, high-quality ethyl alcohol to hand sanitizer manufacturers. For example, FDA’s new limits for certain impurities are eight times more restrictive what is typically found in a glass of red wine and twenty times more restrictive than what has been allowed in hand sanitizer by other countries, including Canada, during the COVID-19 pandemic.

“Meanwhile, as hospitals, first responders, nursing homes, restaurants, retail stores, churches, and other public and private spaces seek out new sources of hand sanitizer to address the shortage, the U.S. continues to significantly ramp up imports of hand sanitizer from China and other countries. It is unfortunate that we are importing this product from China, when abundant supplies of high-purity American-made ethanol could be used instead. Still, we will continue to work with the FDA to ensure ethanol producers can do their part to combat COVID-19 and provide larger quantities of ethyl alcohol for hand sanitizer.”



CHS Hedging launches AgSurion Risk Consulting

CHS Hedging today announced its Russell Consulting Group subsidiary has been fully integrated into CHS Hedging, LLC and all services are renamed AgSurion℠ Risk Consulting. The new name aligns with the scheduled business transition agreement between Russell Consulting Group founder and principal Maurice (Moe) Russell, Panora, Iowa, and CHS Hedging, Inver Grove Heights, Minn.

"While our farm marketing and financial consulting service has a new name, you can rest assured that the commitment to service, integrity and our unique business model remains the same," says Nelson Neale, CHS Hedging president.

Nelson says the name AgSurion Risk Consulting was chosen to reflect the reassurance producer and commercial customers gain when they move forward confidently with a sure plan of action – one that's built through strong teamwork and a focus on the future.

CHS Hedging predecessor company Country Hedging Inc. acquired partial ownership of Russell Consulting in 2007 and CHS Hedging LLC assumed full ownership in 2018.



Steady Improvement
Stephen R. Koontz, Dept of Ag Economics, Colorado State University

The week of May 9 is looking like the low point for Federally Inspected Commercial Fed Steer and Heifer slaughter numbers. That week saw 203,400 and 114,800 head. The most recent data, which are two weeks prior, is for May 16 and those numbers are 253,300 and 139,300 head. A steady improvement but below the peak this year, to date, from March 28 of 339,400 and 209,800 head. This is the question for the rest of the year. How close to the high volumes seen in early 2020 do slaughter numbers return? There are very large supplies and substantial inventory of long-fed cattle on feed. There has been a steady improvement in fed cattle and feeder cattle prices through last month and into the current. Continued improvement hinges on any further disruptions and steady elevating on slaughter numbers.

FI Commercial slaughter is a little better than 71% of the prior peak weekly volume and the low point was approximately 60% of that peak. And be careful with the Memorial Day week numbers going forward as there is one less day in that operations week. These slaughter numbers will determine when the cattle and beef markets return to more normal relationships. Packers running reduced kills do not have typical costs or demand needs.

Boxed beef composite values have returned from the stratosphere valuations above $400/cwt. (I've printed that chart in color to go with my Estimated Average Cow Calf Returns from 2014.) The current Choice and Select values are $341.15 and $316.83, both are off greater than $20/cwt. The Choice-Select spread is on it's seasonal tear higher and doing so earlier. Recession threats have not moderated this demand indicator. Does this spread persist through the summer, like last year, or show seasonal weakness later? The 5-Market weighted average fed cattle price is above $115 from lows, to date this year, below $100/cwt. Feeder cattle prices for 7-8 weight animals are close to $135 from lows of $120, and 4-5 weight animals are close to $170 from lows of $162. Downstream disruptions appear persistent - as is expected with many local economies with limited opening - but the fed cattle and feeder cattle markets are much more familiar. It's too soon to talk too much about markets returning to normal but the steady improvements associated with the packing industry facing fewer obstacles is a relief. But let's not forget those steer and heifer slaughter weights are in a contra seasonal increase and are no less than 40 pounds per animal above last year. That's a 4.8% increase in beef supplies due to carcass weights. And there are 4.8 million head of cattle on feed over 120 days based on the last report. Working through these supplies will easily require the rest of the summer.



Sorghum Checkoff Selects Leadership Sorghum Class V Members

The United Sorghum Checkoff Program has selected 13 members to Leadership Sorghum Class V, a program designed to develop the next generation of sorghum leaders and industry advocates.

“The Leadership Sorghum program has become a staple for recruiting new leaders to the sorghum industry and fulfilling those roles on state, national and associated boards and committees,” Sorghum Checkoff Board Chairman Craig Poore, a sorghum farmer from Alton, Kansas, said. “As a past graduate, I believe leadership is vital to the success of any industry, and congratulate these individuals for being selected to the program.”

Leadership Sorghum Class V will consist of 13 farmers from five states who will participate in the 18-month program. Those selected include:
David Barrett from Sinton, Texas
John Browning from Plainview, Texas
Matthew Crane from Pritchett, Colorado
Daniel Hopper from Leonardville, Kansas
Winter Johnston from McConnellsburg, Pennsylvania
Deanna Lanier from Valley Center, Kansas
Matt McCune from Plainville, Kansas
Brant Peterson from Johnson, Kansas
Gage Porter from Mercer, Missouri
Dale Stoltzfus from Schuylkill Haven, Pennsylvania
Ciera Ware from Ralls, Texas
Brian Younker from Spearville, Kansas
Kirk Zerr from Quniter, Kansas

“The Sorghum Checkoff uses this program to prepare sorghum advocates and leaders at the local, state and federal level,” Leadership Sorghum Program Director Shelee Padgett said. “Leadership development is critical to the sorghum industry’s advancement, and we are so excited to equip Class V with skills to advocate for their operations and the sorghum industry as a whole.”

Participants of the Leadership Sorghum program will gain an understanding of how sorghum moves through the value chain, how checkoffs and interest groups interact on behalf of the industry and what the future holds for the crop through hands-on and classroom-style education. Leadership Sorghum Class V will complete professional development training and have several networking opportunities, as well.

For more information about the Leadership Sorghum program, visit www.LeadSorghum.com.