Tuesday September 22 Ag News

Senator Fischer Introduces Cattle Market Transparency Act of 2020

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, today introduced the Cattle Market Transparency Act of 2020. The legislation would restore transparency and accountability in the cattle market by establishing regional negotiated cash minimums and equipping producers with more market information.

“The past few years have been very difficult for producers, due to tough conditions and big market disruptions such as the Holcomb plant fire and the outbreak of COVID-19. My legislation seeks to bring transparency and accountability to the cattle market.  It will ensure there are a sufficient number of cash transactions to facilitate price discovery, and equip producers with more price information to assist them with their marketing decisions,” said Senator Fischer.

More information:
This summer, the U.S. Department of Agriculture concluded its investigation into potential market manipulation in the cattle industry following a fire at a Tyson Foods plant in Holcomb, Kansas, and the COVID-19 pandemic. Following that investigation, Senator Fischer committed to introducing legislation to resolve ongoing challenges in the cattle market. The Cattle Market Transparency Act of 2020 will:

1.      Establish regional mandatory minimum thresholds of negotiated cash trades to enable price discovery in cattle marketing regions. It requires the Secretary of Agriculture to establish regionally sufficient levels of negotiated cash trade, seek public comment on those levels, then implement.

2.     Require USDA to create and maintain a library of marketing contracts between packers and producers, and require packers to supply this information to USDA.

    Mandate that a packer report the number of cattle scheduled to be delivered for slaughter each day for the next 14 days. This requirement already exists for the swine industry.

4.     Make clear that all information should be reported in a manner that ensures confidentiality, and note, “Nothing in this section permits the Secretary, or any officer or employee of the Secretary, to withhold from the public the information [required to be reported under LMR].”



Nebraska Cattlemen Support Cattle Market Transparency and Increasing Price Discovery

Cattle market transparency - specifically, fed cattle market price discovery - has been a headline issue for Nebraska Cattlemen members over the majority of the past decade. The Cattle Market Transparency Act of 2020 employs new ideas to address price discovery concerns while repurposing proven programs to increase cattle market transparency.  
 
"We sincerely thank Senator Fisher for her work on this important issue to Nebraska Cattlemen members." - Ken Herz, President, Nebraska Cattlemen. "Price discovery and market transparency are complex issues that take complex solutions."
 
Items in Senator Fischer's bill such as the cattle contract library, 14-day packer purchase commitment outlook, and clarification of USDA-LMR confidentiality guidelines to avoid non-reporting of USDA-LMR collected data on a regional and national basis will aid in increasing cattle market transparency for all producers. Additionally, directing USDA-AMS to establish regionally negotiated cash plus negotiated grid marketing volume minimums thresholds will enhances price discovery goals and commitments for the betterment of all cattle producers.   
 
The Cattle Market Transparency Act of 2020 fits into ongoing industry efforts to afford all cattle producers the opportunity to share in the beef industry's successful product marketing efforts both domestically and abroad.



NCBA Responds To Cattle Market Transparency Act

The National Cattlemen’s Beef Association (NCBA) released the following statement in response the Cattle Market Transparency Act, introduced today by Sen. Deb Fischer (R-Neb.):
 
“Price discovery is an issue of critical importance to cow/calf producers, stockers, backgrounders, and feeders across the United States, and more negotiated trade is needed throughout the cattle feeding regions to ensure sufficient price discovery. That is why all of NCBA’s 46 state affiliate organizations unanimously adopted a fed cattle price discovery policy at our 2020 Summer Business Meeting. This policy directs NCBA to pursue a voluntary approach to price discovery that includes triggers established by a working group of producer members which, if tripped due to a lack of regionally sufficient negotiated trade, would prompt NCBA to seek legislative or regulatory solutions—such as those outlined in Sen. Fischer’s bill—to achieve robust price discovery.
 
“Since the adoption of this policy, that producer group has been diligently working to establish these triggers and identify a path to increase negotiated trade across all cattle feeding regions. We anticipate that the subgroup will meet the October 1st deadline set by the policy to establish regional triggers.
 
“Sen. Fischer’s bill explores many avenues to improve transparency in the cattle markets. The creation of a cattle contracts library and clarification of confidentiality rules will provide crucial data to cattle producers as they seek to make informed marketing decisions. However, our policy dictates that the voluntary framework we are developing be allowed the opportunity to succeed or fail before we can lend our support to regional mandatory minimums for negotiated trade. We welcome a continued dialogue with Sen. Fischer and her colleagues on ways to achieve robust price discovery for all cattle producers.”



SAMPLE AND TEST HAY BEFORE WINTER FEEDING
Jerry Volesky - NE Extension
 
Do you know the quality of the hay or silage that you harvested this past season?   It is important to know how much protein and energy your cows will get when you start feeding, or how much supplement to feed.  Find out by following instructions for sampling and testing.
 
Correct sampling techniques, followed by lab tests of forage quality, are necessary for cattle producers who want to get the most value from their forages and profit from their animals.
 
Maybe the most important step in sampling hay, and sometimes the most difficult step, is deciding which bales and stacks should be included in each sample.  Ideally, each sample should include only bales that were produced under nearly identical conditions.
 
Obviously, the place to start grouping is to separate different types of hay, like alfalfa or CRP or corn stalk or meadow hay.  But each cutting of hay probably is different from the other cuttings also, so there is another separation.  And no two fields or meadows are ever exactly the same, especially if they were cut more than two days apart, so that makes another grouping.  And what if part of the field was rained on before it was baled?  The hay made without rain damage probably will be different from hay with rain damage.
 
After you’ve made all these separations, which could result in quite a few groups of similar bales, then and only then are you ready to sample.  From each group gather a dozen or more cores from different bales or stacks and combine them into one sample.  Be sure to use a good hay probe that can core into at least one foot of the bale.
 
Finally, send these samples to a certified lab for tests of crude protein, energy content and possibly nitrates, if it was an annual forage and had some of the risk factors associated with nitrates.
 
Then use this information to feed your cattle as profitably as possible.  



Seeding Rates for Broadcasting Cover Crops Into Late-season Corn and Soybean
Katja Koehler-Cole - UNL Research Assistant Professor in Agronomy and Horticulture

The middle to end of September is a good time to establish cover crops by broadcasting seeds into corn or soybean before harvest. Broadcast interseeding before harvest allows cover crops to capture more sunshine, growing degree days and rainfall than drilling after harvest.

Previous studies have shown that cover crops in eastern Nebraska usually have greater productivity when they are established before harvest than drill-planted after harvest. Cover crops with more biomass will better reduce erosion and run-off. High amounts of cover crop biomass mean more organic matter is returned to the soil.

When it comes to selecting a seeding rate for broadcasting cover crops, there is little research-based information. Broadcast seeds do not have good seed-soil contact which reduces the seeds’ ability to take up water necessary for germination. Thus, stand counts of broadcast cover crops are often lower than those of drilled cover crops. Could increasing the seeding rate overcome low stand counts and improve cover crop productivity?

We tried to answer this question by carrying out field experiments at the Eastern Nebraska Research and Extension Center near Mead and the South-Central Agricultural Laboratory near Clay Center in 2016/2017 and 2017/2018 in corn and soybean fields under no-till management. Our cover crops were cereal rye, variety Elbon, and hairy vetch, variety not stated. The research plots measured 20 by 30 feet, so we broadcast by hand instead of using equipment.

For rye, seeding rates (pure live seed) were 60 lb/ac, 90 lb/ac, and 120 lb/ac. Hairy vetch seeding rates were 40 lb/ac, 60 lb/ac, and 80 lb/ac. In the fall, we determined cover crop stand counts by counting the number of plants in two 5×1 ft frames in each plot. In the spring, we measured productivity by clipping biomass in two 5×1 ft squares per plot, drying and then weighing biomass.

On average, in rye plots, 13% of broadcast seed emerged, with stand counts of 6 plants/sq ft. In vetch plots, 30% of seed emerged, and there were about 5 plants/sq ft. Rainfall within a week after broadcasting is critical for good establishment and was greater at the eastern site than at the south-central site. As a result, more seeds emerged at the eastern site. Stand counts increased with increasing seeding rates.

Rye produced more biomass than vetch, on average 1,500 lb/ac. Rye biomass increased with the greater seeding rates, but the difference between the medium and high seeding rate was not significant. For vetch, increasing the seeding rate did not improve biomass production which was 400 lb/ac. Vetch should be planted earlier for better productivity. Figure 2 shows biomass production of the cover crops broadcast interseeded into soybean. Rye was more productive than vetch (2,100 lb/ac and 500 lb/ac) but increasing the seeding rates did not change biomass production of either rye or vetch.

Cover crops tended to produce more biomass when established in soybean than in corn, but this was not statistically tested. Rye in corn stubble showed signs of not receiving enough light, as it was lighter in color, had longer stems, and fewer tillers than rye in soybean stubble. Fall tillering is associated with greater spring biomass and may be the reason why cover crops planted into soybean were more productive than those planted into corn. Rye can also compensate for low stand counts by tillering, which explains the lack of response to increased seeding rates. On the other hand, the greater amount of residue and taller stalk remaining in corn fields may preserve more soil moisture and may protect from wind, thus benefitting cover crops in dry and cold sites.

Take-home Message
Despite low emergence, cereal rye was a productive cover crop when established by late-season broadcast interseeding. When broadcast interseeding cereal rye into corn, we found that a seeding rate of 90 lb/ac produced the most biomass in the spring. When broadcast interseeding into soybean, a seeding rate of 60 lb/ac produced the same amount of biomass as higher seeding rates. Vetch biomass production was low and was the same at the seeding rate of 40 lb/ac than at the higher seeding rates. Vetch needs to be established earlier than the mid-to late September seeding dates in our study.



Rethinking Methane
CBB newsletter

In July, Burger King released a commercial claiming that adding lemongrass to beef cattle diets would cut down on "cow farts" and reduce methane emissions by "up to 33 percent." Ag industry experts quickly pushed back on the controversial video. One of those experts was world-renowned air quality specialist Dr. Frank Mitloehner, a professor at the University of California–Davis (UC-DAVIS). His input, along with many others in the ag industry, resulted in Burger King pulling parts of the campaign and issuing an apology to producers. Burger King asked Dr. Mitloehner to partner with them to gain science-based insight and fact-check content moving forward. This is a huge success for the cattle industry.

Dr. Mitloehner is passionate about understanding and mitigating air emissions from livestock operations. His research is working towards understanding how cattle can be part of a climate solution. Dr. Mitloehner, with the Clarity and Leadership for Environmental Awareness and Research (CLEAR) center at UC-Davis, recently released a video explaining how to measure biogenic methane's impact on the environment.

Watch the video here.... https://www.youtube.com/watch?v=UOPrF8oyDYw.  



Record Level of Prime Grading
Josh Maples, Extension Economist, Dept of Ag Econ, Mississippi State University

The percentage of steer and heifer carcasses grading prime so far during 2020 has outpaced normal levels. The average percent prime for the first seven months of 2020 was 10.6 percent which is the highest January-July average on record and about two percent higher than during the first seven months of 2019.
 
Dressed weights have also been higher during 2020. Average steer and heifer dressed weights were 899 and 829 pounds, respectively, during the first 8 months of 2020. For steers, that was a 32-pound increase over the same period in 2019 while it was a 25.5-pound increase for heifers. Cattle dressed weights are usually seasonally lowest during late spring and then peak in late fall. In 2020, the seasonal decline in the spring did not materialize due to the processing disruptions forcing cattle to stay on feed longer.
 
The percentage of cattle grading prime was steadily increasing before the 2020 disruptions. Percent prime averaged 4.1 percent during 2010 through 2015 and 7.4 percent from 2016 to 2019. On the opposite end of the grading scale, the percentage of cattle grading select has been declining. Percent select averaged 28.3 percent during 2010 to 2015 and 18.5 percent from 2016 to 2019. The average select percent for the first seven months of 2020 was 14 percent which is the lowest seven-month average on record and 3.5 percent lower than during the first seven months of 2019.
 
In the middle, the percent of cattle grading choice has increased from 67.3 percent during 2010 to 2015, to 74 percent during 2016 to 2019, and averaged 75.2 percent through July in 2020. Putting prime and choice together, 85.8 percent of cattle graded either prime or choice during 2020 through July. There are longer-term trends that are leading to increasing quality grades; but the percentages in 2020 have been exceptionally strong.
 
While prime percentages increased, the weighted average carcass premiums for grading prime decreased. The USDA-AMS 5-Area weekly premiums and discounts report showed the average carcass premium for prime from April through July 2020 was $8.37 per cwt. This was $3.52 lower than the same period of 2019. For comparison, the average prime premium during April through July for 2015 to 2019 was $14.03.
 
The larger totals of prime beef in 2020 occurred as demand for prime took a significant hit. A sharp decline in travel and dining at high-end restaurants impacted the demand for prime beef. The demand decline was coupled with the supply increase and the premiums received for prime carcasses declined. These shifts in supply and demand of prime carcasses in 2020 limited the reward for achieving the prime carcass grade.
 
The USDA-AMS national weekly comprehensive boxed beef cutout report shows the value of prime relative to choice has increased since the low points earlier this year. From April through July 2020, the prime boxed beef cutout value averaged only $10.59 higher than the choice cutout. Since the start of August, the weekly difference has averaged $23.71 including consecutive weekly increases over the past five weeks. This suggests that the difference between choice and prime cutout values may be returning to more normal levels moving forward.



NEBRASKA CHICKENS AND EGGS

All layers in Nebraska during August 2020 totaled 8.57 million, down from 9.19 million the previous year, according to the USDA's National Agricultural Statistics Service.  Nebraska egg production during August totaled 214 million eggs, down from 235 million in 2019. August egg production per 100 layers was 2,502 eggs, compared to 2,560 eggs in 2019.

IOWA EGG PRODUCTION
Iowa egg production during August 2020 was 1.24 billion eggs, up 1% from last month but down 14% from last year, according to the latest Chickens and Eggs report from the USDA’s National Agricultural Statistics Service.

The average number of all layers on hand during August 2020 was 47.0 million, up 1% from last month but down 18% from last year. Eggs per 100 layers for August were 2,639, up 1% from last month and up 6% from last year.



USDA: August Egg Production Down 2 Percent

United States egg production totaled 9.29 billion during August 2020, down 2 percent from last year. Production included 8.03 billion table eggs, and 1.26 billion hatching eggs, of which 1.17 billion were broiler-type and 85.1 million were egg-type. The average number of layers during August 2020 totaled 380 million, down 3 percent from last year. August egg production per 100 layers was 2,445 eggs, up 1 percent from August 2019.
                                    
Total layers in the United States on September 1, 2020 totaled 382 million, down 3 percent from last year. The 382 million layers consisted of 317 million layers producing table or market type eggs, 60.8 million layers producing broiler-type hatching eggs, and 3.29 million layers producing egg-type hatching eggs. Rate of lay per day on September 1, 2020, averaged 77.9 eggs per 100 layers, up slightly from September 1, 2019.

Egg-Type Chicks Hatched Up 8 Percent
Egg-type chicks hatched during August 2020 totaled 50.0 million, up 8 percent from August 2019. Eggs in incubators totaled 47.2 million on September 1, 2020, down 1 percent from a year ago. Domestic placements of egg-type pullet chicks for future hatchery supply flocks by leading breeders totaled 370,000 during August 2020, up 91 percent from August 2019.

Broiler-Type Chicks Hatched Down 2 Percent
Broiler-type chicks hatched during August 2020 totaled 837 million, down 2 percent from August 2019. Eggs in incubators totaled 690 million on September 1, 2020, down 1 percent from a year ago.  Leading breeders placed 8.21 million broiler-type pullet chicks for future domestic hatchery supply flocks during August 2020, up 1 percent from August 2019.



USDA Cold Storage August 2020 Highlights

Total red meat supplies in freezers on August 31, 2020 were up 3 percent from the previous month but down 13 percent from last year. Total pounds of beef in freezers were up 5 percent from the previous month but down 2 percent from last year. Frozen pork supplies were up 2 percent from the previous month but down 23 percent from last year. Stocks of pork bellies were down 28 percent from last month and down 33 percent from last year.

Total natural cheese stocks in refrigerated warehouses on August 31, 2020 were down 1 percent from the previous month but up 1 percent from August 31, 2019.  Butter stocks were up slightly from last month and up 22 percent from a year ago.

Total frozen poultry supplies on August 31, 2020 were up 1 percent from the previous month but down 2 percent from a year ago. Total stocks of chicken were up 1 percent from the previous month but down 1 percent from last year. Total pounds of turkey in freezers were up 2 percent from last month but down 6 percent from August 31, 2019.

Total frozen fruit stocks on August 31, 2020 were up 10 percent from last month but down 7 percent from a year ago.  Total frozen vegetable stocks were up 19 percent from last month but down 3 percent from a year ago.



Excluding CCC from CR Pulls the Rug Out from Under Farmers, Ag Retailers

Today, Agricultural Retailers Association (ARA) President and CEO Daren Coppock released the following statement in response to the continuing resolution (CR) released by U.S. House of Representatives Democrats extending funding for government operations through Dec. 11:

"The CR expressly excludes a provision to ensure 2018 Farm Bill farm and conservation programs will be able to continue uninterrupted beyond Fiscal Year 2020. For decades, USDA's Commodity Credit Corporation (CCC) has been regularly replenished to fund programs integral to the farm safety net that Congress has worked tirelessly to craft.

"Producers count on programs like Agriculture Risk Coverage, Price Loss Coverage, Dairy Margin Coverage, Marketing Assistance Loans, conservation programs, and many others as they provide food, fuel and fiber for our nation.

"Farmers and those who provide them credit, including retailers, banked on predictable and promised farm programs. Failure to replenish CCC will pull the rug from under those budgets and financing arrangements.

"ARA urges the House to make amendments to the CR to avoid disruptions to the CCC before passage."



Culver's 'Scoops of Thanks' Day to Support FFA, Ag Groups

If you are near a Culver's restaurant on Sept. 24, you may want to stop in for a quick treat. That's because each location will be giving away a single scoop of frozen custard in exchange for a $1 donation to the FFA that day, while supplies last.

Proceeds raised from the event will benefit local or state FFA chapters or other agricultural organizations selected by each restaurant.

The restaurant chain had originally scheduled the annual promotion for May 7, but postponed it because of the COVID-19 pandemic.

Scoops of Thanks Day is part of the Culver's 'Thank You Farmers' program, an initiative that recognizes all farmers for their hard work and dedication in growing and producing the wholesome food that feeds our nation. To date, the program has raised over a million dollars in support of the National FFA Organization and Foundation, local FFA chapters and a variety of local agricultural organizations.

Last year's Scoops of Thanks promotion raised over $104,000.