Tuesday July 7 Ag News

NE Ethanol Board Hosts Webinar on Carbon Capture

The Battelle Memorial Institute and the Great Plains Institute invite you to attend the second webinar of this series, on July 21, 2020, at 10:30 AM CDT, focused on carbon capture, utilization, and storage opportunities in Nebraska. This three-part webinar series will dive into:
-    Basics about carbon capture technology
-    Specific applications for carbon capture, including ethanol, power plants and other industrial sources
-    Technical and economic considerations for different projects
-    Geology of Nebraska and prospects for geological storage of carbon dioxide (CO₂) and enhanced oil recovery
-    National and regional infrastructure planning initiatives to improve the transportation of CO₂ and better connect Nebraska CO₂ sources, sinks, and markets
-    Policy drivers for carbon capture, including clean fuels policies, the federal 45Q tax credit, and national infrastructure policy
-    Stakeholder-led carbon capture initiatives in other states

The webinar series is co-hosted by the Nebraska Conservation and Survey Division, Nebraska Ethanol Board, Nebraska Public Power District, Regional Deployment Initiative, and Renewable Fuels Nebraska.

Carbon capture, utilization, and storage presents numerous economic and environmental benefits for Nebraska. For ethanol plants, it offers economic value for a waste product and additional value in clean fuels markets. For power plants, it can aid in decarbonization efforts and offer grid assets as the energy system transforms over time. Through carbon capture, Nebraska can spur the development of new industries including carbon dioxide (CO₂) enhanced oil recovery, direct air capture, and synthetic fuels and products from CO₂. As our country shifts focus toward economic recovery from COVID-19 in the coming weeks and months, these economic opportunities are more important than ever before.
 
Webinar #2: Case Studies
Webinar #2 dives deeper into carbon capture opportunities in Nebraska, highlighting economics and specific case studies. Specific topics include:
    Overview of carbon capture economics
    Case study | Carbon capture at Nebraska Public Power District
    Case study | Carbon capture at ethanol facilities
    Case study | Infrastructure for carbon capture
    Case study | Carbon capture at CVR Energy

You will hear from the following industry members on this webinar:
    Ben Grove, Battelle
    John Swanson, Nebraska Public Power District
    Keith Tracy, Nebraska producer
    Al Collins, Occidental Petroleum
    Neal Barkley, CVR Energy

Register here: https://gpisd.webex.com/mw3300/mywebex/default.do?service=1&siteurl=gpisd&nomenu=true&main_url=%2Fmc3300%2Fe.do%3Fsiteurl%3Dgpisd%26AT%3DMI%26EventID%3D1016491787%26UID%3D0%26Host%3DQUhTSwAAAARmf7YjzfoGcPVj7Yy6Zj7sWasx5YZb0evEdlbNWKga5vP5XtsnJMSVXkRkq1pc7quPwma9DVWPbN-t7jnsRB1s0%26RG%3D1%26FrameSet%3D2%26RGID%3Dr4acc661a8481da30c0d13dee1b2246f3.

Webinar #3: Geology
Webinar #3 will focus on Nebraska’s unique geological formations and what they mean for carbon capture. Specific topics include:
    Prospects for carbon capture
    Prospects for enhanced oil recovery

Not able to attend but interested in subsequent webinars? Submit the Webinar #2 registration form, and you’ll be automatically invited to Webinar #3. Webinars will recorded and made available to registrants.

For any questions regarding Webinar #1 or the webinar series, or if you have trouble registering, please contact Hannah Haas at hhaas@gpisd.net.



Former UNL Professor and NE LEAD Director Allen Blezek Passess

Allen Blezek, an emeritus professor in the Agricultural Leadership, Education and Communications Department at UNL, was a member of both the Agriculture Builders of Nebraska and the Nebraska Hall of Agricultural Achievement has died after a battle with cancer. He served as the director of the Nebraska LEAD program for nearly 25 years and was instrumental in building the LEAD program that we have today. He was involved in many, many other organizations over the course of his life, including the Nebraska Association of County Extension Boards, which awarded Allen with the statewide Outstanding Volunteer award earlier this year.

Allen was passionate about agriculture, agricultural education, and service to others. He left an indelible mark on the many organizations he served, including the University of Nebraska-Lincoln. We were lucky to know him, we will miss him deeply, and we are grateful for his decades of leadership and service. 



United States and State of Nebraska Reach Settlement with Henningsen Foods Inc. for Alleged Clean Water Act Violations

The United States and the state of Nebraska have reached a settlement with Henningsen Foods Inc. to resolve alleged violations of the Clean Water Act at the company’s egg processing facility in David City, Nebraska.

Under the terms of the settlement, the company will spend about $2 million in upgrades to reduce the amount of pollutants the facility sends to the David City wastewater treatment system. The company also agreed to pay a $827,500 civil penalty.

“We are encouraged by Henningsen’s willingness to upgrade its own facility and assist with upgrades to the David City wastewater treatment system,” said EPA Region 7 Administrator Jim Gulliford. “These actions will protect the residents of David City and Nebraska waters.”

Henningsen processes approximately 1.2 million eggs per day and is one of the largest egg processors in the state. The facility is subject to Clean Water Act regulations that prevent industries from overloading municipal wastewater treatment systems with industrial pollutants.

According to the U.S. Environmental Protection Agency (EPA), high loads of egg-processing waste and cleaning solution generated by Henningsen are sent to the David City wastewater treatment facility. Since at least 2014, this waste has caused both Henningsen and David City to violate the Clean Water Act on multiple occasions by discharging pollutants in excess of state and federal limits to Keysor Creek, which flows into the North Fork Big Blue River. These pollutants included ammonia and oxygen-depleting substances that are toxic to aquatic life and potentially harmful to people. Further, EPA alleges that Henningsen repeatedly failed to submit timely and accurate pollutant monitoring information required by law.

As a result of this enforcement action, Henningsen has installed pretreatment equipment at its facility and agreed to operate and maintain it in order to reduce pollutants before they reach the David City wastewater treatment facility. The company will also continue to pay for its share of upgrades to the David City wastewater treatment facility to adequately treat Henningsen’s wastewater, and will increase the frequency of its pollutant monitoring and reporting.

The settlement is detailed in a Consent Decree that was filed with the United States District Court for the District of Nebraska on July 7, 2020, and will be subject to a 30-day public comment period before final court approval.



RUSLE2 Soil Loss Workshop Sessions Will Be Offered Online

Iowa State University Extension and Outreach, in collaboration with the United States Department of Agriculture’s Natural Resources Conservation Service and Iowa Department of Natural Resources, has scheduled a workshop to train livestock producers and service providers on how to use the Revised Universal Soil Loss Equation 2 (RUSLE2) and the Iowa Phosphorus Index in nutrient management and manure management plans. RUSLE2 software calculates soil loss for a given field, which is needed to figure out the Iowa Phosphorus Index. 

The RUSLE2 workshop will be held online from Aug. 10-14. Each day, one session will be held from 2:30-4 p.m. using Zoom. Participants will need to pre-install the freely available Zoom Software Application to participate. A web link will be sent daily to the participants to join the zoom session online.

The sessions of this introductory level workshop will provide hands-on software orientation for RUSLE2, including an introduction to the operating parameters, selection of input values, and developing and saving management operations.

Additionally, real field examples will be used in the sessions to determine risk calculations of the Iowa Phosphorus Index and how to incorporate these numbers into manure and nutrient management planning requirements. Manure management planning, soil sampling requirements, common errors and the IDNR’s review process also will be discussed. An orientation into the new soil loss calculation software, WEPP – Water Erosion Prediction Project, will also be provided.

The workshop sessions will be taught by Don Corrington, U.S. Department of Agriculture-NRCS; Kapil Arora and Dan Andersen, agricultural and biosystems engineering specialists with ISU Extension and Outreach; and Jeremy Klatt, Iowa Department of Natural Resources.

“Nutrient and manure management plans require updated RULSE2 and P-Index calculations every four years, and these online sessions will be a great refresher for those producers who develop their own plans or for consultants who are new to this planning process,” said Arora.

Cost of the five workshop sessions is $150 if registered by Aug. 5, and $175 after that date. Participants must have an MS Windows compatible laptop or desktop computer equipped with camera and audio speakers; Microsoft Excel software; and the administrator password to the computer in order to install software.

Workshop coordinators will work with the registered participants prior to the workshop to pre-install the needed software. The workshop is limited to 15 participants and all participants must pre-register. Crop Advisor Credits (6 SW, 1 NM) are available for this workshop.

The agenda for different daily sessions and registration instructions, and additional workshop details are available on the RUSLE2 Workshop website. Participants interested in attending the workshop can register online.



CHS Reports $97.6 Million in Third Quarter Fiscal 2020 Net Income

CHS Inc. (NASDAQ: CHSCP), the nation's leading agribusiness cooperative, today reported net income of $97.6 million for the third quarter of fiscal year 2020 that ended May 31, 2020. This represents a 78.8 percent increase compared to net income of $54.6 million in the third quarter of fiscal year 2019.

The results for the third quarter of fiscal year 2020 reflect:
-    Revenues of $7.2 billion compared to revenues of $8.5 billion for the third quarter of fiscal year 2019.
-    Improved margins and volumes across much of the Ag segment as a result of more favorable weather conditions for spring planting compared to third quarter of fiscal year 2019.
-    Improved trade relations between the United States and foreign trading partners.
-    Decreased selling prices and volumes for refined fuels driven by global market conditions including the impact of COVID-19, which has depressed demand for energy products.
-    A $42.0 million noncash charge to reduce our refined fuels inventory to its market value.

"We continue to adapt how we do business to ensure the safety of our employees and our customers. A successfully managed supply chain helped our owners get the products and services they and their customers need to grow their crops. That focus also helped us deliver value to our customers around the world," said Jay Debertin, president and CEO of CHS Inc. "Improved trade relations benefited us, and, in turn, our owners, and we are eager for that to continue. We are not immune to the market pressures caused by COVID-19, and we will continue to adjust to best serve our owners and customers."

Third Quarter Fiscal 2020 Business Segment Results
The following segment results were reported for the third quarter of fiscal year 2020 compared to the third quarter of fiscal year 2019.

Energy
Pretax loss of $54.8 million in the third quarter of fiscal year 2020 compared to $1.3 million in pretax earnings for the third quarter of fiscal year 2019 reflects:
-    Lower margins due to less advantageous market conditions compared to the third quarter of fiscal year 2019. Those lower margins were the result of decreased refining margins, which were partially offset by improved crude oil differentials for heavy Canadian crude oil processed by our refineries and by improved propane margins.
-    Decreased selling prices and volumes for refined fuels driven by global market conditions including the impact of COVID-19 and product mix, which has depressed demand for energy products.
-    A $42.0 million noncash charge to reduce our refined fuels inventory to its market value.

Ag
Pretax earnings of $95.4 million in the third quarter of fiscal year 2020 compared to pretax earnings of $21.1 million in the third quarter of fiscal year 2019 reflect:
-    Improved trade between the United States and foreign trading partners.
-    Improved margins across much of the Ag segment as a result of more favorable weather conditions for spring planting compared to third quarter of fiscal year 2019, which were partially offset by decreased margins and volumes in our renewable fuels and processing and food ingredients businesses. Those decreases are attributable to COVID-19-related demand shocks in food service and transportation sectors.
-    Impact of additional loan loss reserves established in the third quarter of fiscal year 2019 that did not reoccur in the third quarter of fiscal year 2020.

Nitrogen Production
Pretax earnings of $23.5 million compared to pretax earnings of $20.2 million in the third quarter of fiscal 2019 reflect:
-    Decreased interest expense associated with our CF Nitrogen investment.

Corporate and Other
Pretax earnings of $6.3 million compared to pretax earnings of $19.0 million in the third quarter of fiscal 2019 reflect:
-    Lower earnings from our investment in Ventura Foods resulting from decreased demand due to COVID-19-related demand shocks in the food service sector.



May Margin Triggers Dairy Margin Coverage Program Payment

The U.S. Department of Agriculture’s Farm Service Agency (FSA) today announced that the May 2020 income over feed cost margin was $5.37 per hundredweight (cwt.), triggering the third payment of 2020 for dairy producers who purchased the appropriate level of coverage under the Dairy Margin Coverage (DMC) program.

“This payment comes at a critical time for many dairy producers,” said FSA Administrator Richard Fordyce. “DMC has proved to be a worthwhile risk management tool, providing dairy producers with much- needed financial support when markets are most volatile.”

To date, FSA has issued more than $176 million in 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.

Although DMC enrollment for 2020 coverage has closed, signup for 2021 coverage will begin October 13 and will run through December 11, 2020.



USFRA Changes Its Name to U.S. Farmers & Ranchers in Action

The U.S. Farmers & Ranchers Alliance is changing its company name to U.S. Farmers & Ranchers in Action to reflect the new organization's status as a 501c3.

During a board meeting last fall, the USFRA board voted to move the organization's activities from the prior 501c6 to a 501c3 charitable organization. This required USFRA to rebrand itself to avoid confusion between the two organizations. In March, the board of directors adopted the 501c3 organization's new name - U.S. Farmers & Ranchers in Action.

The new name allows USFRA to keep its well-known acronym, and further emphasizes the organization's belief that the actions of farmers and ranchers are crucial in building sustainable food systems of the future. The new name will be announce externally on July 8, along with the announcement of the new website.



Research Enhances Understanding of the Nutritional and Economic Differences in Soybean Meal from Different Origins

A new meta-analytical study reinforces U.S. Soy’s reputation for being a global leader in quality and nutrient-density. The study, entitled, “Chemical composition, protein quality and nutritive value of commercial soybean meals produced from beans from different countries,” demonstrates that not all soybean meals are created equal and that meal from different countries of origin should be treated individually when formulating swine and poultry diets. The data from this study were then processed by the Nutrient Value Calculator (NVC), a software tool constructed by Genesis Feed Technologies, a company built to bring visibility into feed costs. This cost analysis supported the economic benefits of U.S. soybean meal relative to meal from other origins as a key ingredient in poultry rations.

Dr. Gonzalo Mateos, Professor of Animal Science at the University of Madrid in Spain and study co-author, first presented findings from the meta-analysis at the U.S. Soybean Export Council’s (USSEC) Asia Trade Exchange to 850 U.S. Soy customers and soybean industry representatives. This pioneering compilation of research is the most comprehensive quality review of soybean meal that has ever been conducted, and it gives customers greater clarity around soybean meal quality from different countries of origin. The meta-analysis looked at 18 different studies and 1,944 samples to quantify the relationship between country of origin of the bean and the chemical composition and nutritive value of the soybean meal. Soybeans from the following origins were analyzed: Argentina (ARG), Brazil (BRA), USA (USA) and India (IND).

“One of the main points from the study, is that customers should be using different matrices for the evaluation of the nutritional value of soybean meals of different origins,” said Dr. Gonzalo Mateos, Professor of Animal Science at the University of Madrid, Spain. “If they buy only based on protein or vegetable sucrose content, they may buy a product that is actually lower quality. Therefore, it is important to check all of the values that are related to the nutritive value of the soybean meal before making purchase decisions, which this study addresses.”

The data in this meta-analysis forms a new key pillar of the economic evaluation of soybean meal in global markets. Using the Nutrient Value Calculator from Genesis Feed Technologies, the economic value of U.S. soybean meal can be evaluated in global markets using formulas representative of the regional feed manufacturers. Nutrient values and prices of all the other components of the diet are also used in this calculation. The NVC indicates that U.S. soybean meal is the leading contributor to cost reduction in broiler diets.

“Our company was thrilled to participate in this groundbreaking research conducted by the U.S. Soybean Export Council,” said Peter Schott, CEO and Co-Founder of Genesis Feed Technologies. “We hope that buyers take note of the results, purchase more U.S. soy and see a significant reduction in their feed costs. This NVC analyzes economic nutritional value of soybean meals from different origins to give traders and buyers a platform to connect with nutritionists directly to better inform their feed investments.”

When comparing cost reductions with incorporation of data from the aforementioned meta-analytical study, premiums of U.S. soybean meal range from $14.57 to $23.24 per tonne over Argentine soybean meal and range from $2.48 to $10.26 per tonne over Brazilian soybean meal.

“U.S. soy and soybean meal products offer a price advantage and rank first on a number of important nutritional attributes when compared to other origins, including remarkable amino acid and energy profiles,” said Paul Burke, USSEC’s Senior Director for U.S. Soy Marketing. “This will continue to ensure we deliver a valuable, consistent and more economical product that our customers can count on.”

Soybean meal is an important source of protein for the global feed industry, where it is used in livestock, poultry and aquaculture diets. To meet this demand for animal feed, the farmers that grow sustainable U.S. soy not only care about being a reliable supplier but take pride in providing a high-quality product to their international customers.

“The world’s need for a high-quality protein product like U.S. soybean meal will be critical as our population continues to grow. And U.S. farmers around the country are ready and willing to meet that need,” said Monte Peterson, Chairman of USSEC, board member of the American Soybean Association and soybean farmer in Valley City, N.D. “Our soybean farmers provide a consistent, nutritious and efficient source of protein for both the food and feed sectors. This meta-analysis is important because it shows how U.S. soy is the most high-quality and best economic choice, backed by science.”



Judge Casts Doubt on Roundup Settlement

Bayer stock tumbled on Tuesday, after a district judge hinted he would reject part of the company's $10.9 billion plan to settle lawsuits claiming Roundup causes cancer.

The German chemicals giant announced at the end of June it had agreed to pay up to $10.9 billion to settle close to 100,000 lawsuits claiming Roundup had caused cancer. The company acquired the weed killer when it bought U.S. agribusiness Monsanto for $63 billion in 2018, inheriting its legal liabilities. Bayer has lost three jury trials in recent years totaling more than $2 billion in damages, all of which are being appealed and aren't covered by the settlement. The company has consistently denied allegations of a link between the herbicide and cancer.

Bayer said the settlement brought closure to 75% of the 125,000 filed and unfiled cases against the company and around 95% of those set for trial.

The proposed settlement also includes a $1.25 billion payment designed to address all future claims regarding the weed killer. Under this part of the plan, an independent panel of scientists would determine whether Roundup can cause cancer and, if so, at what minimum exposure. This "futures class action" requires court approval, which will be decided on a preliminary basis on Jul. 24.

However, a pretrial order published on Monday cast doubt over such an approval, as a district judge outlined the court's concerns.

"The Court is skeptical of the propriety and fairness of the proposed settlement, and is tentatively inclined to deny the motion," U.S. District Judge Vince Chhabria said in a filing with the United States District Court, Northern District of California. He added it was "questionable whether it would be constitutional."

"In an area where the science may be evolving, how could it be appropriate to lock in a decision from a panel of scientists for all future cases?" his filing added.

A spokesperson for Bayer said: "We appreciate the Judge's order raising his preliminary concerns with the proposed settlement, which we take seriously and will address at the preliminary approval hearing on July 24." 

Bayer has also faced legal troubles over its dicamba weed killer, amid claims from Midwestern farmers it has damaged crops. In February, a jury ordered Bayer and its peer BASF to pay $265 million to a Missouri peach farmer, who claimed the herbicide had damaged thousands of his fruit trees after drifting from neighboring cotton fields. More than 140 similar cases were due to be heard but a $400 million settlement to resolve pending dicamba lawsuits between 2015 and 2020 was also announced last month.