Monday August 10 Ag News

 NEBRASKA CROP PROGRESS AND CONDITION

For the week ending August 9, 2020, there were 6.1 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 15% very short, 25% short, 58% adequate, and 2% surplus. Subsoil moisture supplies rated 15% very short, 25% short, 59% adequate, and 1% surplus.

Field Crops Report:
Corn condition rated 2% very poor, 5% poor, 15% fair, 57% good, and 21% excellent. Corn silking was 98%, ahead of 92% last year, and near 97% for the five-year average. Dough was 67%, well ahead of 37% last year, and ahead of 51% average. Dented was 14%, ahead of 2% last year and 8% average.

Soybean condition rated 2% very poor, 3% poor, 14% fair, 59% good, and 22% excellent. Soybeans setting pods was 81%, ahead of 62% last year and 69% average.

Sorghum condition rated 2% very poor, 6% poor, 27% fair, 39% good, and 26% excellent. Sorghum headed was 87%, well ahead of 61% last year, and ahead of 75% average. Coloring was 4%, near 8% last year, and behind 9% average.

Oats harvested was 95%, ahead of 85% last year and 89% average.

Dry edible bean condition rated 0% very poor, 4% poor, 20% fair, 57% good, and 19% excellent. Dry edible beans blooming was 92%, ahead of 79% last year. Setting pods was 55%, ahead of 39% last year.

Pasture and Range Report:
Pasture and range conditions rated 7% very poor, 12% poor, 23% fair, 53% good, and 5% excellent.



IOWA CROP PROGRESS & CONDITION REPORT

Alfalfa hay second cutting was 94% complete, 5 days ahead of last year but equal to the 5-year average. The third cutting was 37% complete, 10 days ahead of the previous year but equal to average. Hay condition continued to decline at 60% good to excellent. Pasture condition fell to just 37% good to excellent.

Most of Iowa saw little to no rain as farmers had 6.4 days suitable for fieldwork during the week ending August 9, 2020, according to the USDA, National Agricultural Statistics Service. Fieldwork activities continue to be spraying, harvesting hay and grain movement.

Topsoil moisture condition rated 22% very short, 39% short, 38% adequate and 1% surplus. For the first time since the week ending September 17, 2017, the State’s topsoil moisture condition rated over half short to very short. Subsoil moisture condition rated 16% very short, 37% short, 46% adequate and 1% surplus. This was the first time since the week ending October 1, 2017, the State’s subsoil moisture condition rated over half short to very short.

Corn was 66% in the dough stage or beyond, 12 days ahead of the previous year and 5 days ahead of the 5-year average. Corn in dent stage reached 9%. That is over a week ahead of the previous year, but just 1 day ahead of average. Corn condition fell to 69% good to excellent.

Soybeans were 94% blooming or beyond, 4 days ahead of average. Soybeans setting pods are 2 weeks ahead of last year and a week ahead of average at 83%. Soybean condition fell to 70% good to excellent.

Oats harvested for grain was 94% complete, 6 days ahead of last year and 4 days ahead of the average.



USDA:  Corn 71% Good to Excellent; Soybeans 74% Good to Excellent

Declines in Iowa's and South Dakota's corn condition ratings dragged down corn's national good-to-excellent rating slightly last week, USDA NASS said in its weekly Crop Progress report on Monday.

NASS estimated that 71% of the nation's corn crop was in good-to-excellent condition as of Sunday, Aug. 9, down 1 percentage point from 72% the previous week but tied for the third-highest rating in 10 years.  Corn silking reached 97% as of Sunday, 2 percentage points ahead of the five-year average of 95%. Corn in the dough stage jumped ahead 20 percentage points to reach 59%, 7 percentage points ahead of the five-year average of 52%. Corn dented was estimated at 11%, near the average of 12%.

While corn condition declined last week, soybean conditions continued to improve. NASS estimated that 74% of the nation's soybean crop was in good-to-excellent condition as of Aug. 9, up 1 percentage point from 73% the previous week. That is the highest national good-to-excellent rating for soybeans in at least 10 years for a second consecutive week.  Soybean development continued to run slightly ahead of the average pace last week. Soybeans blooming was estimated at 92%, 3 percentage points ahead of the five-year average of 89%. The portion of the crop setting pods was estimated at 75%, 7 percentage points ahead of the five-year average of 68%.

Winter wheat harvest moved ahead another 5 percentage points last week to reach 90% complete as of Sunday. That remained 3 percentage points behind the five-year average of 93%.

Meanwhile, spring wheat harvest picked up speed last week, moving ahead 10 percentage points to reach 15% complete as of Sunday. That was ahead of 6% at the same time last year but 10 percentage points behind the five-year average of 25%.

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Crop Diseases Spreading and Increasing
Tamra Jackson-Ziems, NE Extension Plant Pathologist

Southern Rust Spreading
Southern rust continues to spread across eastern Nebraska. To date, southern rust has been reported in 45 Nebraska countie.

In southern counties the disease is becoming more widespread and severe in some fields. During the last week southern rust has been confirmed in several northern Nebraska counties where we don’t normally have southern rust development during grain fill stages.  It is important for producers, agronomists and others to continue to scout for southern rust immediately and repeatedly, especially in fields that are in grain fill stages and have southern rust nearby. Southern rust is caused by an aggressive fungal pathogen that can infect and reproduce quickly. In susceptible corn hybrids, damage can be severe causing substantial yield loss due to loss of leaf area that may also lead to reduced standability later. Scouting to identify where the disease has developed and is spreading will help to make informed decisions about whether or not a fungicide application may be needed to minimize damage that can be caused by the disease. Warm temperatures, especially around 80 F and moist conditions favor southern rust development and spread.

Gray Leaf Spot
Gray leaf spot has also begun to move up the plants and is increasing in severity in many areas. Disease history, cropping practices (such as continuous corn), hybrid ratings, and weather conditions (especially warm and high relative humidity) impact this disease. Foliar fungicides can manage the disease and resistant hybrids. Look for rectangular lesions that began in the lower leaves and progress higher up the plants.  Because symptom development can be slow (14-21 days to develop lesions), keep in mind that infection may have already occurred 1-2 leaves above the highest leaf with visible lesions.

Bacterial Leaf Streak
Bacterial leaf streak has been confirmed across most of Nebraska and is more severe now than in several years. On some hybrids, lesions may appear similar to and be confused with those of the fungal disease, gray leaf spot (described above). Bacterial leaf streak lesions are often tan and between the leaf veins but often have wavy, irregular margins. Lesions may appear bright yellow when backlit. Foliar fungicides will not control the bacteria causing the disease. Some hybrids have severe bacterial leaf streak that has reached the upper leaves on corn plants.

Soybean Disease - Frogeye Leaf Spot
Frogeye leaf spot has begun to develop and spread in some fields. Be sure to look for small gray to tan lesions with dark margins in upper soybean leaves. Foliar fungicides can effectively control the disease when applied at R3-R5, but resistance has been confirmed in some Nebraska locations to the QoI Group 11 (formerly called strobilurin) fungicides. We will continue to monitor frogeye development and test for fungicide resistance and its distribution in Nebraska. If a fungicide application is needed for frogeye leaf spot, consider products that are a mixture of active ingredients representing multiple fungicide classes for best results.



Evaluating Alfalfa Stands Part 1 - Using the Hay Square Method
Ben Beckman - NE Extension Educator
Megan Taylor - NE Extension Educator

Were you expecting more from your alfalfa yields? Is it time to renovate, start over, or move on? Typically, evaluating stands occurs in the spring, but evaluating this fall will give you a better idea going forward and allow more time for future options.

Evaluating stem/plant counts estimates the yield now. There are two options when evaluating your stand:
    by the number of plants per square foot (typically recommended for newer stands) and
    by the number of stems.

I would recommend evaluating by the total number of stems for established stands. University of Wisconsin research shows that stem count more accurately predicts yield compared to plant number. However, either method will give you more information when making management decisions.

The Hay Square Method
To determine the number of plants per square foot or stems, I would recommend using a hay square. Your hay square should measure 17 x 17 inches using a ½ inch PVC or you can use a circular hoop that is 19 inches in diameter. Pick 4 to 5 random areas in your field to sample, then count the plants or stems that would be harvested, typically anything over 6 inches, to determine your count. Divide those numbers by 2 to get stems or plants per square foot.

For established stands, having 4 to 5 healthy plants per square foot or 55 stems per square foot would indicate a productive and healthy stand. Stem counts below 55 show a significant decrease in dry matter production.

For stands less than a year old or spring planted alfalfa, you will see more plants per square foot compared to stems. Remember, a good rule of thumb is for every pound of seed per acre you would expect 3 to 5 plants per square foot. With that in mind, a seeding rate of 20 lbs per acre would have the potential for 60 to 100 plants per square foot. Typically, new alfalfa stands can have 22 to 30 plants per square foot, but will continue to thin out as the stand is established. This thinning out process will be evident by the end of the first year of production and some stands could have 15 to 8 plants per square foot. It is recommended to focus on stems and not number of plants at the end of the first year of production. As the alfalfa stand ages it will continue to branch out and produce more stems as the plants compete for space. After the first year of production, it is recommended to treat the stand like all other established stands.

Bottom line: Evaluate your established and newly seeded stands this fall to determine needs for spring and remember 4 to 5 plants and 55 stems per square foot are above maintenance levels for established stands. In newly seeded stands, having 15 to 8 plants and 35 to 55 stems per square foot will still leave you with a productive stand.



CARES Act Implications on Tax Planning for Farmers
Tina Barrett, Executive Director, Nebraska Farm Business Inc.

The CARES Act, passed in March of 2020, provided many changes that directly impacted farmers. It created both the Payroll Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), which many farmers utilized. However, the CARES Act included several other provisions that didn’t get as much attention. Farmers need to be aware of these as they go into tax planning this fall, as they could benefit their operations.

Net Operating Losses
The Tax Cuts and Jobs Act (TCJA) limited some choices we had when it came to Net Operating Losses (NOLs). Prior to 2018, most businesses could carry a loss back for two years, while farmers could go back five years. The TCJA eliminated the ability for non-farm businesses to carry losses back and limited farm loss carrybacks to two years and reduced the farm carryback from five years to two years.  The CARES Act delayed the impact of the TCJA until after December 31, 2020.

In simpler terms, if you had net operating losses in 2018 or 2019, you may want to carry the loss back if you paid taxes in 2013-2017. The decision will be based on if the level of tax was higher in those years than in the future years. The tax brackets in those years were higher than what we expect to see in 2021–2025 due to the changes in the TCJA, but that is all subject to future tax law changes as well. The other benefit to carrying the loss back is the time value of the money.  Having the refund in your hands now will increase cash flow and working capital rather than waiting for the benefit in future tax years.

This is obviously a complex issue that can be confusing with all the law changes we’ve been experiencing. If you had losses in 2018 or 2019, you need to discuss the pros and cons of both carrying the loss back and electing to carry it forward on your 2020 return.

Business Losses
A NOL occurs when your business losses exceed your non-farm income, which results in negative total income on your return. The TCJA put a limit on business losses of $250,000 ($500,000 for Married Filing Jointly). Any loss greater than this limit is considered to be an Excess Business Loss. This means that if you are married filing jointly and your Schedule F was more negative than $500,000, the loss was limited. The CARES act suspends this rule for 2018-2020.

As a result, if your 2018 or 2019 return was affected by an Excess Business Loss, it will need to be amended. Even though it was prepared correctly at the time, the law is no longer in effect. This could change how much of a NOL you generate or could allow you to offset larger amounts of non-farm income.

Required Minimum Distributions
The CARES act suspended the requirement for individuals to take a required minimum distribution (RMD) from their retirement accounts. An RMD is usually required by an individual who is over the age of 70 ½ who has a tax deferred retirement account. The ability to not take a distribution allows for your savings to grow and reduce your taxable income for 2020.

As a side note, the SECURE Act of 2019 increased the RMD age to 72 starting in 2020, so if you turned 70 ½ in 2020, you will not be required to take an RMD until you turn 72.

Retirement Account Changes
The CARES act allows for individuals to take a qualified distribution (up to $100,000) that would not be subject to the 10% penalty for early withdrawals. The individual can also spread the income equally over three years to lower the tax implication of the withdrawal. If the money is replaced within three years, it can be treated as if it was a qualified rollover and the tax will not be due.

Charitable Donations
One final change to be aware of is an above the line deduction for charitable donations up to $300. This means you can deduct up to $300 of cash donations without itemizing your deductions.  You still need a receipt from the charity to prove the deduction, but if you’ve gotten out of the habit of keeping those receipts, you should begin keeping at least $300 worth of these receipts.

If you are in the market to make a large donation, they also changed the limit for 2020. In 2020 only, you will be allowed to deduct up to 100% of your adjusted gross income as a charitable donation (you must itemize in this case). Normally, the limit is 60% of your adjusted gross income, so if you were thinking of making a sizable donation, this is the year to do it.

There are many things that have changed this year, but the importance of tax planning is not one of them. There are constantly changing rules, incentives, and pitfalls. It is important to seek the advice of a tax professional to know and understand how each of these things will affect your operation.



Virtual rural farmers market trainings set

Online training will be offered to rural farmers, market managers, and vendors interested in becoming involved or improving a farmers market. These free events are hosted by the Center for Rural Affairs, University of Nebraska-Lincoln Extension, and Buy Fresh Buy Local.

Six sessions are planned via online video conference, focusing on three areas of Nebraska: Beatrice, Kearney, and Norfolk. Two sessions are set for each region.

“We encourage you to register for trainings nearest to your location; however, if those dates do not work, you are welcome to attend other dates,” said Erin Schoenberg, project associate with the Center for Rural Affairs.

“Marketing and Vendor Recruitment/Retention Training” will be held for those in the Beatrice area on Monday, Aug. 24, from 6 to 8 p.m. CT; in the Kearney area on Monday, Aug. 31, from 6 to 8 p.m. CT; and in the Norfolk area on Monday, Sept. 14, from 6 to 8 p.m. CT.

“Legal Structure and Supplemental Nutrition Assistance Program (SNAP) Training” will be held for those in the Beatrice area on Tuesday, Aug. 25, from 6 to 8 p.m. CT; in the Kearney area on Tuesday, Sept. 1, from 6 to 8 p.m. CT; and in the Norfolk area on Monday, Sept. 21, from 6 to 8 p.m. CT.

“In ‘Marketing and Vendor Recruitment/Retention Training,’ learn about ways to market and expand vendor sales, vendor and customer recruitment, and to grow your community’s market,” Schoenberg said. “In ‘Legal Structure and SNAP Training,’ find out more about navigating food benefit programs to expand access to local and healthy foods.”

Registration is required by noon the day of each training to make sure attendees receive log-in details in time for the event. Visit cfra.org/events to RSVP and for more information. For questions, contact Schoenberg at erins@cfra.org or 402.499.2781.

These events are made possible by funding from the U.S. Department of Agriculture Agricultural Marketing Service.



National FFA Organization Names 2020 American Star Finalists

The National FFA Organization selected 16 students from throughout the United States as finalists for its 2020 top achievement awards: American Star Farmer, American Star in Agribusiness, American Star in Agricultural Placement and American Star in Agriscience.

The American Star Awards represent the best of the best among thousands of American FFA Degree recipients. The award recognizes FFA members who have developed outstanding agricultural skills and competencies through the completion of a supervised agricultural experience (SAE) program. A required activity in FFA, an SAE allows members to learn by doing. Members can own and operate an agricultural business, intern at an agricultural business or conduct an agriculture-based scientific experiment and report the results.

Other requirements to achieve the award include demonstrating top management skills; completing key agricultural education, scholastic and leadership requirements; and earning an American FFA Degree, the organization’s highest level of student accomplishment.

The finalists include:
American Star Farmer
Cole Ketterling of Wishek, N.D.
Nole Gerfen of Marion, Ohio
JaLeigh Reneé Oldenburg of Mulhall, Okla.
Mikara Anderson of Three Springs, Penn.

American Star in Agribusiness
William Kellum of Jefferson, Ga.
Ely Matthew Boulds of Eldorado, Ill.
Hannah York of Fredonia, Ky.
Blake Kirchhoff of Hardy, Neb.

American Star in Agriscience
Lauren Roberts of Trenton, Fla.
Maddie Sue Fugate of Mahomet, Ill.
Nicole Stevens of Yukon, Okla.
Jacob Bagby of Stephenville, Texas

American Star in Agricultural Placement
Ryan Adelbert Stewart of Washington, Kan.
Will Shelby of Madill, Okla.
Cole James Schock of Salem, S.D.
Wilson Nugent of Gilmer, Texas

A panel of judges will interview the finalists and select one winner from each award category for the 93rd National FFA Convention & Expo, which will be held virtually this fall. The four winners will be announced during the convention.

Case IH, Elanco Animal Health and Syngenta sponsor the American FFA Degree recognition program.

Visit FFA.org/stars for more information about the American Star Awards.



ISU Hosts One-Hour Free Crop Marketing Strategies Webinar on August 13

A free webinar titled Crop Marketing Strategies will be presented on Thursday, August 13, at 7 p.m. CST. The featured speaker will be Steve Johnson, ISU Extension farm management specialist. Steve will review the latest USDA supply/demand report and methodology USDA uses to estimate crop yields. He will also discuss crop marketing strategies & tools, federal government program payments and crop insurance coverage. Steve will highlight some considerations for potential challenges of drying corn and storing large crops. The webinar will last one-hour followed by questions. The webinar will last one-hour followed by questions.

The webinar is free, but requires pre registration online at this site -
https://register.gotowebinar.com/register/1549048464599819790.  



AFBF’s Duvall Joins Other Industry Leaders to Discuss the Future of Food

American Farm Bureau Federation President Zippy Duvall will be among several leaders from the food and agriculture industry discussing ways to safeguard global food security, improve consumer health and conserve resources during Reuters Events’ Food Chain Connect 2020, Nov. 5-6.

The free, online event will give 5,000-plus business leaders from across the food chain a platform to discuss the changing landscape of food production, supply and retail, according to Reuters Events.

“Consumer interest in all things related to food has long been on the rise, but the onset of COVID-19 and all the ways it upended our daily lives, including how we feed ourselves and our families, has taken that interest to a whole new level. There is no better time for farmers, ranchers and the many others involved in feeding the nation to discuss how we build upon our many successes in production, efficiency and sustainability,” said Duvall.

Over two days of live broadcasts, the conference will bring together leading corporate CEOs and senior business leaders alongside government representatives, nongovernmental organizations, investors and technology providers to share insights and tangible strategies related to food production, supply and distribution.



Beef Export and Import Adjustments
Josh Maples, Extension Economist, Mississippi State University

U.S. beef trade continues to adjust to supply and demand shocks. The latest data release from the USDA Economic Research Service (ERS) shows the impact of these shocks on U.S beef exports and imports. On August 6, ERS released the June 2020 Livestock and Meat International Trade data. The data show beef exports were lower in June while imports were higher.
 
According to the ERS data, U.S. beef exports on a carcass weight basis were 183.3 million pounds in June 2020 which was 33 percent lower than in June 2019 and the lowest June total since 2009. This follows a similarly low May 2020 which was 31 percent below May 2019. On the import side, U.S. beef imports were up 15 percent in June 2020 over the previous June and the highest total since June total since 2015.

Beef exports started 2020 strong. First quarter exports were 10 percent above the same period of 2019. The second quarter is when beef exports experienced declines - down 23 percent from the second quarter of 2019. For the year-to-date in available ERS data, U.S. beef exports are down 7.6 percent compared to same period in 2019 and beef imports are 3 percent above 2019.

Japan, South Korea, Canada, and Mexico are the top four export destinations and together accounted for 75 percent of beef exports in the first half of 2020. Exports were lower to each of these countries during June 2020 with the exception of Canada which was essentially unchanged as compared to June 2019. Exports to Mexico were down 61 percent in June compared to June 2019. Worth noting, beef exports to China were up 90 percent from June 2019 but accounted for only 2.8 percent of total June 2020 exports.

Canada, Mexico, Australia, and New Zealand are the top four import sources and together accounted for 83 percent of beef imports in the first half of 2020. During June 2020, imports from Mexico were up 58 percent over June 2019, imports from Canada were up 4.2 percent, and imports from Australia and New Zealand were down 9 and 5 percent, respectively.

These data are likely not surprising given the U.S. beef supply disruptions in April through June. Lower production and reduced product availability certainly impacted international trade. However, the demand side is equally important and has impacted imports and exports. Weaker macroeconomic settings in many countries combined with higher U.S. beef prices also played a part in the trade adjustments. Additionally, exchange rate changes play a key role. Beef production and prices were much more normal in July (relative to April-June) and it will be interesting to watch how quickly trade adjusts to these changes moving forward.



National Farmers Says Dairy Producers Should Be Allowed to Vote Individually on Federal Milk Marketing Order Reform  

                National Farmers Organization dairy leaders say it’s time for the elimination of bloc voting by co-ops, when it comes to Federal Milk Marketing Order hearings. Currently, only dairy farmers who are independent and not members of cooperatives may cast individual ballots.

                “I believe dairy farmers deserve the chance to have their individual voices clearly represented on dairy matters, especially as it relates to federal milk marketing order reform,” said National Farmers President, Paul Olson.

            National Farmers leaders believe bloc voting should be eliminated relating to activities covered under the Capper-Volstead Act, governmental referendums, Federal Milk Marketing Order reform issues and agricultural promotion plans.

                On July 28, the American Farm Bureau Federation issued its priorities report for Federal Milk Marketing Order Reform. They also endorsed giving farmers the opportunity to cast individual votes during the FMMO ballot casting process.

                “The structure of the dairy industry has changed dramatically since I started milking cows in the 1960s, and real, positive change begins with farmers’ individual votes tallied on the important matters of Federal Order Reform,” Olson said.