October 23 Cattle on Feed + Ag News

 NEBRASKA CATTLE ON FEED UP 6%

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.41 million cattle on feed on October 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 6% from last year. Placements during September totaled 600,000 head, up 13% from 2019. Fed cattle marketings for the month of September totaled 460,000 head, up 12% from last year. Other disappearance during September totaled 10,000 head, unchanged from last year.



IOWA CATTLE ON FEED REPORT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 610,000 head on October 1, 2020, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was unchanged from September, but down 5% from October 1, 2019. Iowa feedlots with a capacity of less than 1,000 head had 490,000 head on feed, up 1% from last month and up 2% from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,100,000 head, up less than 1% from last month but down 2% from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during September totaled 72,000 head, down 4% from August and down 12% from last year. Feedlots with a capacity of less than 1,000 head placed 61,000 head, up 45% from August but down 28% from last year. Placements for all feedlots in Iowa totaled 133,000 head, up 14% from August but down 20% from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during September totaled 70,000 head, down 16% from August but unchanged from last year. Feedlots with a capacity of less than 1,000 head marketed 54,000 head, unchanged from August but down 32% from last year. Marketings for all feedlots in Iowa were 124,000 head, down 9% from August and down 17% from last year. Other disappearance from all feedlots in Iowa totaled 4,000 head.



United States Cattle on Feed Up 4 Percent
    
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on October 1, 2020. The inventory was 4 percent above October 1, 2019. This is the highest October 1 inventory since the series began in 1996. The inventory included 7.31 million steers and steer calves, up 6 percent from the previous year. This group accounted for 62 percent of the total inventory. Heifers and heifer calves accounted for 4.41 million head, down slightly from 2019.

On Feed by State    (1,000 hd  -  % Oct 1 '19)
Colorado .......:              1,110          112               
Iowa .............:                610              95                 
Kansas ..........:              2,540          107                 
Nebraska ......:              2,410          106                 
Texas ............:              2,870          103                 

Placements in feedlots during September totaled 2.23 million head, 6 percent above 2019. Net placements were 2.17 million head. During September, placements of cattle and calves weighing less than 600 pounds were 445,000 head, 600-699 pounds were 360,000 head, 700-799 pounds were 500,000 head, 800-899 pounds were 517,000 head, 900-999 pounds were 300,000 head, and 1,000 pounds and greater were 105,000 head.

Placements by State  (1,000 hd - % Sept '19)
Colorado .......:                  245              102         
Iowa .............:                    72                88           
Kansas ..........:                  490              113         
Nebraska ......:                  600              113         
Texas ............:                  450               97              

Marketings of fed cattle during September totaled 1.85 million head, 6 percent above 2019.  Other disappearance totaled 58,000 head during September, 2 percent below 2019.

Marketings by State  (1,000 hd - % Sept '19)
Colorado .......:                  170              97            
Iowa .............:                    70             100            
Kansas ..........:                  410             106             
Nebraska ......:                  460             112           
Texas ............:                  415             106           



LENRD board to address groundwater contamination in Cuming, Colfax, and Dodge Counties

At their October meeting, the Lower Elkhorn Natural Resources District (LENRD) Board of Directors approved a motion to direct staff to begin the formal process for consideration of a Phase 2 Groundwater Management Area in portions of Cuming, Colfax, and Dodge counties for groundwater quality purposes.

In 1997, a Groundwater Management Area was established to improve and protect groundwater quantity and quality.  The management area covers the entire LENRD or all or parts of 15-counties in northeast Nebraska.  This designation put the entire district into Phase 1 of groundwater management controls.  Since that time, portions of Pierce and Madison Counties have moved into Phase 2 & 3 management sub-areas due to the increasing trend of nitrate concentration in the groundwater.

As part of the LENRD’s Groundwater Quality Sampling program, water samples are collected annually across the district to help document any changes or trends in groundwater quality, testing for general water quality parameters.  This data is carefully scrutinized and can be used to delineate areas that have similar groundwater quality characteristics, such as areas that have high or low nitrate-nitrogen levels.  LENRD Assistant Manager, Brian Bruckner, said, “In the past few years, the district has seen an increase in nitrates in the groundwater in portions of these three counties.”

Organic and Inorganic fertilizers and livestock manure contain nitrogen that is either in the nitrate form or is easily converted to nitrate. Nitrate dissolves readily in water, and when this nitrate-containing water moves through the soil and below plant roots, it can very easily reach and contaminate groundwater.

Bruckner added, “We can work together to minimize the impact of agricultural contaminants on groundwater by encouraging, and in some cases, requiring the use of wise management practices.  Designating a boundary is one of the first steps in establishing a management area.”

Bruckner continued, “As we begin the process of delineating a Phase 2 Groundwater Management Area, the district will be hosting educational workshops to inform stakeholders on the issues, answer questions on the implications of a Phase 2 Area, and come up with solutions to address this potential health risk.  We will also be organizing a series of public meetings in this tri-county area in December to begin to inform and educate the public on the critical need to keep our water supply safe.”

Nitrate-nitrogen can be a threat to good health, and the U.S. Environmental Protection Agency and the Nebraska Department of Health have established an upper limit of 10 milligrams per liter (or parts per million or ppm) of nitrate-nitrogen for drinking water. The district encourages anyone using a private well as a drinking water source to test their water annually for nitrate-nitrogen and consult a physician if the nitrate-nitrogen levels are close to or above 10 milligrams per liter.

State statute requires that the LENRD provide stakeholders the opportunity to provide feedback and input on any proposed change to its Rules and Regulations or Management Area boundary via a public hearing. The district will be hosting several public information meetings in December in Colfax and Dodge Counties to inform stakeholders and will also host an Open House Public Hearing in late January in West Point.

In other business, the board authorized staff to sign the professional service agreement with FYRA Engineering, not to exceed $80,346 to complete the necessary repairs to the Elkhorn River Streambank Stabilization Project near Scribner, pending approval from both the City of Scribner and Dodge County.

The board also approved an agreement with the University of Nebraska for $34,291 to investigate the deep vadose (unsaturated) zone of locations in Pierce County where increasing nitrate levels are occurring.  This project will provide data to help estimate the loading rate of nitrates into the groundwater.

After officially declaring a drought in September, the board continues to monitor any new developments.  With the health and welfare of the public in mind, the board voted to establish a 12 acre-inch annual allocation for any well located in a designated Wellhead Protection Area (WHPA)  within a D3 or greater drought area within the LENRD on November 1, 2020, and that the annual allocation be lifted if the area is removed from the D3 or greater designation.  The board also approved a motion that would postpone construction of any new well that is part of an approved Variance for any location within the district that intersects with a D3 or greater drought designation on November 1, 2020.

The LENRD board & staff meet each month to develop and implement management plans to protect our natural resources for the future.  The next LENRD board meeting will be Tuesday, November 24th at 7:30 p.m.  Watch for further updates and stay connected with the LENRD by subscribing to their monthly emails.



Extension webinar to cover Nebraska ballot measures

A Nebraska Extension webinar on Thursday at noon will provide an overview of each ballot measure on Nebraska’s 2020 general election ballot.

The educational information will be presented by Dave Aiken, professor and extension water and agricultural law specialist in the Department of Agricultural Economics. He will explain each of the six initiatives facing voters, along with the positions of both proponents and opponents of each issue and what the potential impact of each issue could be, especially on property taxes.

Measures on the Nov. 3 ballot that will be discussed include two proposed constitutional amendments: one that would eliminate slavery or involuntary servitude as punishment of a crime and another that would extend the maximum time for tax increment financing from 15 to 20 years if at least half the project area is extremely blighted. Ballot initiatives that will be covered include a proposal to reduce payday loan charges, and a trio of proposals centered around allowing and regulating casino gambling.

The webinar is presented as part of the Agricultural Economics Extension Farm and Ranch Management weekly series.

Registration is free at farm.unl.edu/webinars.



Nebraska Farmers Union PAC Announces General Election Endorsements

Today is the last day to register to vote and to request a vote-at-home ballot in Nebraska. If you’re already registered to vote (but didn’t request a ballot), you can still vote early at your County Election Office. If you’ve requested a ballot you can mail it back in or better yet, drop it off at an official election drop boxes. Or, you can always vote in person at your polling place on November 3rd! Voting is both a right and an obligation.

NEBFARMPAC, the political action committee of Nebraska Farmers Union, Nebraska’s second largest general farm organization with over 4,000 farm and ranch families, announced its general election endorsements back in June for Congress, the Legislature, Public Service Commission, State Board of Education, Public Power Districts, Natural Resource Districts, and County Commissioners, Here is our updated list, with NeFU members in bold:

Congress:
1st Congressional District:  Jeff Fortenberry, Kate Bolz
2nd Congressional District:  Kara Eastman

Nebraska Legislature:
Carol Blood, LD3
Mike McDonnell, LD5
Tony Vargas, LD7
Terrell McKinney, LD11
Justin Wayne, LD13
Lynne Walz, LD15
Sheryl Lindau, LD17
Helen Raikes, LD23
Anna Wishart, LD27
Eliot Bostar, LD29
Tim Royers, LD31
Steve Halloran, LD33
Dan Quick, LD35
Tom Briese, LD41
Susan Hester, LD45
Jen Day, LD49

Public Service Commission:
District 2: Crystal Rhoades

State Board of Education:
District 2: Lisa Fricke

Nebraska Public Power District:
Subdivision 1: Mary Harding
Subdivision 7: Sheila Hubbard

Omaha Public Power District:
Subdivision 1: Amanda Bogner
Subdivision 2: Sara Howard

Lower Platte North NRD
Subdistrict 3: Andrew Tonnies
Subdistrict 7: Jeff Burling

Lower Platte South NRD
Subdistrict 5: John Yoakum
Subdistrict 6: Anthony Schutz
Subdistrict 7: Chelsea Johnson

Lower Elkhorn NRD
Subdistrict 7: Randy Ruppert

Papio-Missouri River NRD
Subdistrict 3: Larry Bradley

Upper Elkhorn NRD
Subdistrict 6:  Art Tanderup
Subdistrict 7:  Keith Heithoff

Lancaster County Commissioner
Subdistrict 2: Christa Yoakum

Gage County Supervisor
District 6: Don Schuller



NEBRASKA SPECIALTY CROP PROJECTS RECEIVE $822,737 IN USDA GRANTS

The U.S. Department of Agriculture (USDA) recently awarded $822,737 in grants to fund 16 projects designed to strengthen the specialty crop industry in Nebraska. The USDA provides grant monies through the Specialty Crop Block Grant Program (SCBGP) to fund research and ag education activities to increase demand for specialty crops. The Nebraska Department of Agriculture (NDA) monitors and administers Nebraska’s specialty crop program.

“Nebraska is home to a diverse range of agricultural products due in part to the state’s varying terrain, elevation, soil and climate,” said NDA Director Steve Wellman. “In addition to variety, specialty crops add value to Nebraska’s agricultural industry which helps to grow the state’s economy.”

SCBGP supports farmers growing specialty crops, including fruits, vegetables, tree nuts and nursery crops. Grant recipients include agricultural departments and agencies in all 50 states, the District of Columbia, and the five U.S. territories. A list of eligible specialty crops is available on USDA’s website at ams.usda.gov/services/grants/scbgp/specialty-crop.

The University of Nebraska–Lincoln (UNL) received 12 of the 16 grants that the USDA awarded to Nebraska this year. Those grant-funded projects include:
·       hosting an annual Nebraska Specialty Crop Conference and Trade Show from 2021 - 2023 to teach growers about farm practices, marketing methods, and research projects that will grow and enhance the specialty crop industry;  
·       examining the practicality of growing Vinifera grapes in high tunnels for the Midwest;
·       researching novel weed management solutions for matted-row strawberry production;
·       increasing dry edible bean usage by developing a high value-added yogurt product;
·       optimizing nitrogen fertility management of mint production in western Nebraska;
·       collaborating with local growers and area beekeepers to do on-farm testing of a trap crop tactic to manage pest and beneficial insects in sunflower fields;
·       conducting a study that will test new, relatively inexpensive commercially available chemicals for their ability to reduce damage and improve yields in chickpeas due to the fungal disease Ascochyta blight;
·       evaluating novel herbicides and herbicide timings in dry edible beans for control of herbicide-resistant Palmer amaranth;
·       developing a quick, reliable and reproducible analytical methods of evaluating the protein quality of the pulse crop, and an innovative processing technique to enhance the functional properties of pulse proteins for further development of innovative pulse protein-based foods;
·       evaluating nitrogen fertilizer management and iron fertilizer management strategies for improving dry edible bean quantity and quality in western Nebraska;  
·       identifying mungbean varieties adaptable to western Nebraska; and
·       mapping common bacterial blight and common rust resistance genes in Tepary beans to learn how to enhance resistance levels in dry beans.

Four additional groups in Nebraska received funding this year. Mac’s Creek Winery and Brewery received funding to study a more sustainable approach to grapevine weed and disease control by eliminating and reducing chemical pesticide and herbicide spraying in Nebraska vineyards and apple orchards.

The USDA awarded funds to the Arbor Day Foundation to use ozone technology to reduce pesticide usage and improve food safety in small Nebraska fruit orchards.

The USA Dry Pea and Lentil Council received funding to conduct an international trade mission to meet with food aid organization CEOs, purchasing managers, nutritionists and other key personnel. The trade team will travel to Washington, D.C. and Rome, Italy.

Through USDA funding, NDA will continue to conduct Potato Cyst Nematode (PCN) soil surveys to monitor for the presence of PCN as required to maintain Nebraska’s PCN pest-free status.

All of the projects receiving SCBGP funding this year must be completed by Sept. 29, 2023. For a list of funds awarded to each state and more information about past projects, go to USDA’s website at ams.usda.gov/services/grants/scbgp/awards.

NDA administered a two-phase competitive grant application process for these SCBGP funds. Phase I involved the submission of concept proposals, which allowed applicants to explain the main points of their project. The concept proposals were independently and competitively scored by a field review panel. Projects with the highest combined scores were asked to complete Phase II of the application process and include a more in-depth description of the project.



NEBRASKA ORGANIC AGRICULTURE

The U.S. Department of Agriculture’s National Agricultural Statistics Service has released the results of its 2019 Certified Organic Survey. Certified organic operations in Nebraska sold a total of $185 million in organic products in 2019, up 92% compared to 2016. The number of certified organic operations in Nebraska totaled 238, up 47% from 2016.

The 2019 Certified Organic Survey is a special study conducted by NASS and is part of the 2017 Census of Agriculture program. It provides value of sales information at the commodity level along with acreage, production, and practices data for a variety of certified organic crop and livestock operations. Information was also collected on marketing and agricultural practices, crop insurance usage, select production expenses, and acres transitioning into organic production.



Iowa 6th in U.S. for Certified Organic Farms

The 2019 Certified Organic Survey is a special study conducted by the U.S. Department of Agriculture's (USDA) National Agricultural Statistics Service (NASS) and is part of the 2017 Census of Agriculture program. The primary purpose of the survey is to collect value of sales information at the commodity level along with acreage, production, and practices data for a variety of certified organic crop and livestock operations. This is the sixth comprehensive organic survey NASS has conducted and the first since the 2016 Organic Survey.

In 2019, Iowa ranked sixth in the nation for the total number of certified organic farms with 779 farms. That is nearly 5% of the nation's total number of certified organic farms. There were 133,691 acres of certified organic farmland in Iowa. This was an increase of 30,555 acres from 2016.

Corn for grain had the highest total value of sales of organically produced commodities in Iowa with $38.0 million in sales. Iowa produced more certified organic corn of grain and soybeans than any other state, and comprised 13 and 15 percent of national production, respectively. The area harvested for organic corn for grain increased 25% from 2016. Organic soybean sales were $15.5 million in Iowa.

Iowa produced 30% of the Nation's organic oats with sales totaling $4,376,642 in 2019.

On December 31, Iowa producers had 5,458 certified organic hogs on hand, and comprised 36% of the national inventory. Iowa's organic hog inventory ranked first among all other states.

Eggs had the second highest total value of sales of organically produced commodities in Iowa with $37.1 million in sales.



NEBRASKA CHICKENS AND EGGS

All layers in Nebraska during September 2020 totaled 8.59 million, down from 9.34 million the previous year, according to the USDA's National Agricultural Statistics Service. Nebraska egg production during September totaled 212 million eggs, down from 228 million in 2019. September egg production per 100 layers was 2,473 eggs, compared to 2,439 eggs in 2019.

IOWA: Iowa egg production during September 2020 was 1.20 billion eggs, down 3% from last month and down 15% 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 September 2020 was 47.4 million, up 1% from last month but down 18% from last year. Eggs per 100 layers for September were 2,526, down 4% from last month but up 4% from last year.

September Egg Production Down 2 Percent
United States egg production totaled 9.03 billion during September 2020, down 2 percent from last year. Production included 7.81 billion table eggs, and 1.22 billion hatching eggs, of which 1.14 billion were broiler-type and 81.0 million were egg-type. The average number of layers during September 2020 totaled 384 million, down 3 percent from last year. September egg production per 100 layers was 2,354 eggs, up 1 percent from September 2019.
                                    
Total layers in the United States on October 1, 2020 totaled 385 million, down 3 percent from last year. The 385 million layers consisted of 321 million layers producing table or market type eggs, 60.8 million layers producing broiler-type hatching eggs, and 3.12 million layers producing egg-type hatching eggs. Rate of lay per day on October 1, 2020, averaged 78.9 eggs per 100 layers, up 2 percent from October 1, 2019.



Iowa Cattlemen’s Association Calls for Hearings on Cattle Market Transparency Act

The Iowa Cattlemen’s Association, alongside a coalition of 16 other state cattlemen organizations, sent letters to Senate Ag Committee Chair, Pat Roberts (R-KS), and House Ag Committee Chair, Collin Peterson (D-MN), requesting support for the Cattle Market Transparency Act of 2020 (S. 4647/H.R. 8557).

The Cattle Market Transparency Act of 2020, recently introduced by Sen. Deb Fischer (R-NE) and Rep. Vicky Hartzler (R-MO), takes a nuanced approach to provide additional transparency and price discovery in cattle marketing. This legislation differs from the Grassley-Tester 50/14 bill (S. 3693/H.R. 7501) introduced by Iowa delegation, as it requires the Secretary of Agriculture to establish regionally sufficient levels of cash trade for robust price discovery. Additionally, the legislation creates a  library of marketing contracts and requires packers to report the number of cattle scheduled to be delivered for slaughter each day for the next 14 days.

Balanced and consistent price discovery and transparency within the U.S. cattle market have continually been top priorities for the Iowa Cattlemen’s Association for well over a decade.  These membership priorities have been heightened over the past year and have led to the development of potential solutions such as the Grassley-Tester 50/14 bill and others. The Iowa Cattlemen’s Association believes price discovery is the responsibility of all market participants. Ultimately, any viable solution requires active participation and dedication by all stakeholders to provide robust price discovery throughout the system.

We see the Cattle Market Transparency Act of 2020 as an opportunity to advance important priorities without delay or temporary commitments from packers. Insight from our producers has told us that we must act with a sense of urgency, as cattlemen cannot withstand future market disruptions without adjusting the unbalanced power dynamic between those who raise cattle and those who process beef. Without government intervention, cattlemen will continue to be at the mercy of decisions made by the packing industry.

The aforementioned bills are fueled by grassroots support from beef cattle producers who believe in legislative or regulatory fixes to cattle marketing problems within our industry. The iron is hot and it’s time to take action. It would behoove the House and Senate Ag Committee leadership to hold hearings focused on cattle marketing before we are taken out at the knees by another “black swan” event.



U.S. Custom Harvesters to Host Annual Convention in January

U.S. Custom Harvesters (USCHI) will host its 37th annual convention in Des Moines, Iowa, January 21-23, 2021. The convention will be an in-person event.

For the first time in five years, the annual convention will feature the four main U.S. forage harvester equipment companies. Krone, CLAAS, New Holland and John Deere will be showcasing their newest equipment to USCHI members in January.

“As a forage harvester myself, I’m very proud to see what these manufacturers are presenting to our members. They recognize the importance of marketing their products directly to the harvest crew owners and purchase decision makers,” said Glen Jantzen, USCHI board president.

USCHI is an association of professional custom harvesters. Since 1984, USCHI has hosted an annual event to convene members and partners to learn about new equipment, harvesting techniques and to network. “We’re very excited to have all four major forage harvester companies at this year’s convention. Our members love seeing the equipment companies they use every day at our convention,” said USCHI operations manager, Mandi Sieren.



USTR and USDA Release Report on Agricultural Trade between the United States and China

The Office of the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) today issued a report highlighting the progress made to date in implementing the agricultural provisions in the U.S.-China Phase One Economic and Trade Agreement, which is delivering historic results for American agriculture.

Since the Agreement entered into force, the United States and China have addressed a multitude of structural barriers in China that had been impeding exports of U.S. food and agricultural products. To date, China has implemented at least 50 of the 57 technical commitments under the Phase One Agreement. These structural changes will benefit American farmers for decades to come. China also has substantially ramped up its purchases of U.S. agricultural products. To date, China has purchased over $23 billion in agricultural products, approximately 71% of its target under the Phase One Agreement. Highlights outlined in the report include:
    Corn: Outstanding sales of U.S. corn to China are at an all-time high of 8.7 million tons.
    Soybeans: U.S. soybeans sales for marketing year 2021 are off to the strongest start in history, with outstanding sales to China double 2017 levels.
    Sorghum: U.S. exports of sorghum to China from January to August 2020 totaled $617 million, up from $561 million for the same period in 2017.
    Pork: U.S. pork exports to China hit an all-time record in just the first five months of 2020.
    Beef: U.S. beef and beef products exports to China through August 2020 are already more than triple the total for 2017.

In addition to these products, USDA expects 2020 sales to China to hit record or near-record levels for numerous other U.S. agricultural products including pet food, alfalfa hay, pecans, peanuts, and prepared foods.

“This China Phase One Agreement is proof President Trump’s negotiating strategy is working. While it took China a long time to realize President Trump was serious, this deal is a huge success for the entire economy. This agreement finally levels the playing field for U.S. agriculture and is a bonanza for America’s farmers, ranchers, and producers,” said U.S. Secretary of Agriculture Sonny Perdue. “Being able to participate in this market in a more fair and equitable way has generated more sales that are supporting higher prices and strengthening the rural economy.”

“President Trump delivered on his promise to confront China’s unfair trade practices and expand market opportunities for U.S. agriculture through the Phase One Agreement. Since the Agreement entered into force eight months ago, we have seen remarkable improvements in our agricultural trade relationship with China, which will benefit our farmers and ranchers for years to come,” said U.S. Trade Representative Robert Lighthizer.

USTR and USDA continue to work closely with the Chinese government to ensure that the Phase One Agreement is fully and properly implemented, so that access for U.S. food and agricultural products into the Chinese market can continue to expand moving forward.



Suspension of overseas ag container shipments is blow to U.S. ag community

Specialty Soya and Grains Alliance members were shocked to learn this week that shipments of agricultural products by containers are being discontinued by a major shipping line, effective immediately and for the foreseeable future.

The German international shipping and transportation company Hapag-Lloyd has dropped a bombshell, informing exporters it is suspending overseas ag container shipments from North America, a decision that could cause major hardships within the entire U.S. ag community.

The decision is being driven by hard economics during a time of unprecedented demand for higher-value North American consumer imports by containers from Asia at premium prices. Reports to SSGA are that Hapag-Lloyd has decided it needs to quickly reposition empty containers back to Asian shipping centers, even if it means forgoing hauling critical food and agriculture products back to manufacturers overseas.

SSGA members in the Upper Midwest, including shippers of bulk and identity-preserved (IP) soybeans and specialty grains, note the decision will especially hit exporters hard in the Minneapolis-St. Paul region. The strong Twin Cities market frequently finds itself short of inbound containers to meet demand and has long relied on Hapag-Lloyd's services to reposition containers for exports.

“Hapag-Lloyd has been one of the most reliable and dependable carriers for rural, inland ag shippers, so this announcement is devastating and shocking,” said Bob Sinner, president of North Dakota-based SB&B Foods and chair of SSGA’s competitive shipping action team. “For those of us in the food soybean arena, we are just coming off a harvest that our overseas food manufacturing customers are anxious and desperate to begin receiving.”

According to available information from the global trade data company Panjiva, as read by SSGA, Hapag-Lloyd delivered 878 shipments of U.S. bulk soybeans at a volume of more than 17,000 twenty-foot equivalent units (TEU) between Oct. 22, 2019 and Sept. 25, 2020 to destinations around the world. The majority went to Japan, Indonesia, Hong Kong, Taiwan and Malaysia, as well as to Thailand and South Korea. Over that same span there have been 172 shipments of IP non-GMO food-grade specialty soybeans at a volume of 780 TEU.

“This disrupts the food supply chain,” Sinner said, noting that consumption of soy foods has been strong throughout the COVID-19 pandemic and that worldwide food inventories are low. “Companies in those countries rely on us for their food manufacturing. We’ve got our new crop harvested and we’re making significant and consistent bookings with carriers to get our products shipped quickly and as soon as possible.”

The move by Hapag-Lloyd poses an ominous sign for U.S. ag exporters if other ocean carriers decide to follow suit or delay ag shipments. SSGA is encouraging Hapag-Lloyd and any other carriers considering similar decisions to reexamine this policy. SSGA will explore all options to work on behalf of its members to try to help resolve this issue and is encouraging exporter members to talk to their shipping representatives.



Beef. It’s What’s For Dinner. Returns to Broadcast Television In an Integrated Holiday Marketing Campaign Promoting Beef as the Center of the Season

With the holidays looking a little different this year, the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff, is ensuring one thing remains the same - Beef. It’s What’s For Holiday Dinner. Whether gathering around the ‘Beef Drool Log’ or learning how to cook the perfect holiday meal with beef, Beef. It’s What’s For Dinner. has a little something for everyone this holiday season. To remind consumers across the country that beef is the only protein that they want to feed their families this holiday season, Beef. It’s What’s For Dinner. will return to broadcast television. For the first time since 2003, Beef Checkoff-funded advertisements and the iconic Beef. It’s What’s For Dinner. brand will be on television, airing a limited number of ads during the Hallmark Channel’s Countdown to Christmas movies.

Beef. It’s What’s For Dinner. successful video released last year called the ‘Drool Log’—a two-hour long video of a Beef Prime Rib Roast slowly cooking over an open flame—which created quite the following with more than 14 million videos views. This year, NCBA looked for the opportunity to make even more people salivate over beef and will placing a new—and shorter—version of the Drool Log on a television network that creates similar meaningful connections with its audience. New fifteen-second Beef. It’s What’s For Dinner. Drool Log ads will appear throughout late November and December on the Hallmark Channel’s holiday programming event “Countdown to Christmas” as part of a limited holiday broadcast and digital ad buy as a way to have a broader reach with consumers this holiday season.

“As a beef producer, it’s exciting to see checkoff dollars making this holiday season a little more special by bringing Beef. It’s What’s For Dinner. back to broadcast television,” said Buck Wehrbein, NCBA Federation Division Vice Chairman. “While broadcast television is usually out of reach, the opportunity to advertise on the Hallmark Channel’s  Countdown to Christmas movie marathon boiled down to the right network, the right ad, the right time and the right price tag. I look forward to sharing the nostalgia of Beef. It’s What’s For Dinner. ads on televisions with the next -generation of consumers.”

In addition to the bringing the iconic brand back to broadcast television, the Beef. It’s What’s For Dinner. brand is helping consumers navigate how to make the perfect holiday meal through fully integrated digital and social media efforts. Whether having a smaller family gather or working with a tighter budget, there’s a beef option for everyone and the beef experts are here to help people savor the holidays.  These efforts include:
-    New versions of the ‘Beef Drool Log’ videos that will be shared across digital and social media platforms and that people can use as Zoom meeting backgrounds if they’re celebrating the holidays virtually
-    An updated holiday landing page on BeefItsWhatsForDinner.com as a one-stop shop for all beef holiday cooking needs
-    Using cutting-edge technology to make BeefItsWhatsForDinner.com shoppable (meaning you can click on any recipe and be taken to an on-line shopping cart for your local grocery store)
-    Working with two partners to run e-commerce campaigns during the month of December aiming to increase beef sales
-    Leveraging food and nutrition influencers and celebrity chefs to create their own beef recipes for the holiday season for more experienced at-home chefs



RFA Calls on President Trump to Level the Playing Field for Ethanol Exports to Brazil

The Renewable Fuels Association yesterday called on President Trump to move forward in seeking reciprocity and fairness in ethanol trade policy with Brazil. In a letter to the president, the association highlighted his August pledge to consider reciprocity with respect to Brazilian ethanol imports and reminded him of a commitment from the U.S. Trade Representative in September to “ensure that the ethanol industries in both countries will be treated fairly.”

“Unfortunately, it does not appear that any further progress is being made toward elimination of Brazil’s protectionist ethanol trade policies and restoration of the previous free and fair ethanol trade relationship we enjoyed with Brazil,” wrote RFA President and CEO Geoff Cooper. “Instead, it appears likely that Brazil will allow its temporary tariff-free quota to expire again on December 14, at which time a 20 percent (or higher) tariff could be applied to all ethanol imports from the United States.”

RFA says it has become clear that Brazil no longer shares the American industry’s desire for free and open biofuel markets. Thus, the association is urging the administration to move forward with reciprocal tariffs on ethanol imports from Brazil.

“The impacts of the unlevel playing field for ethanol trade have become painfully apparent in recent months,” RFA President and CEO Geoff Cooper wrote. “U.S. imports of Brazilian ethanol have surged, with new shipments appearing at U.S. ports in nine of the past 12 weeks. Year-to-date imports of Brazilian ethanol exceed the same period in 2019 by 15 percent and are at a seven-year high.” The surge of ethanol imports from Brazil shows no signs of slowing down in the remaining months of 2020, Cooper said. Meanwhile, no U.S. fuel ethanol has been shipped to Brazil since May.

RFA concluded by thanking the president for his efforts to pursue a level playing field and reciprocal treatment with respect to ethanol trade, noting that the association stands ready to work with him and his administration to secure fair and equal trade with Brazil.



USDA Announces Fourth Round of the Farmers to Families Food Box Program

The U.S. Department of Agriculture (USDA) today announced it has authorized $500 million for a fourth round of purchases for the USDA Farmers to Families Food Box Program. USDA is issuing solicitations for the fourth round to existing Basic Ordering Agreement (BOA) holders and expects to award contracts by Oct. 30 for deliveries of food boxes from Nov. 1 through Dec. 31, 2020.

In the fourth round, as in the third round, states have been allocated boxes based on the internal need of the state. The program will continue the purchase of combination boxes to include fresh produce, dairy products, fluid milk and meat products. The program also will continue to require that proposals illustrate how coverage would be provided to areas identified as opportunity zones, detail subcontracting agreements, and address the “last mile” delivery of product into the hands of the food insecure population. Entities who meet the government’s requirements and specifications will be issued agreements and submit pricing through a competitive acquisition process.

“I’m gratified by the overwhelmingly positive response to the Farmers to Families Food Box program from families, distributors, food banks, faith-based organizations and non-profits in communities across the country. We recently surpassed 110 million boxes delivered, and millions more are headed to Americans in need,” U.S. Secretary of Agriculture Sonny Perdue said. “I’m very pleased that we are able to extend this program and continue our relief efforts for American farmers and families.”

“Across the country, I have seen firsthand how the Trump Administration is fueling millions of American families through the Farmers to Families Food Box Program,” said Advisor to the President Ivanka Trump. “President Trump’s commitment to extend this impactful program is ensuring healthy and nutritious produce, dairy and meat will continue to reach our Nation’s most vulnerable communities while supporting our farmers!”



NMPF Applauds Additional Food-Box Funding

The National Milk Producers Federation applauded USDA for deciding to fund an additional $500 million for combination food boxes to be delivered through the end of the year. The Farmers to Families Food Box program has delivered approximately $1 billion worth of dairy products to needy Americans since this spring.

“The Farmers to Families Food Box program has proven to be an effective benefit both for families needing assistance and for dairy farmers and processors providing high-quality products to those families via food boxes,” said Jim Mulhern, president and CEO of NMPF. “We hope the department will build upon its successes and lessons learned from this program as it considers further initiatives during the ongoing COVID-19 crisis and beyond.”

NMPF encourages vendors to maximize the amount of wholesome dairy products in the combination boxes to help the most vulnerable population in need for food assistance.



Demand for American Lamb Increases in Second Quarter
 
There’s good news and bad news in this pandemic. The good news is that retail sales of all lamb in the United States are increasing.
 
“The combination of consumers cooking at home, the desire for new meal options, the hard work by lamb marketers, retailers and American Lamb Board checkoff efforts seem to be opening consumers to lamb’s possibilities, and it shows in the numbers,” says Gwen Kitzan, ALB chair from Newell, S.D.
 
The latest retail data – analyzed by IRI/FreshLook Marketing, and released by ALB – quantifies the growth in retail sales for all lamb (domestic and imported) through July 12. Retail sales data show pounds of all lamb sold at multi-outlet supermarkets in the United States in the 13-week period from April 20 through July 12, increased 8.6 percent compared to the same period in 2019. That’s 16.3 million pounds of lamb sold and $137.8 million in sales during the quarter.
In the last four weeks of the period (June 15 through July 12) pounds of lamb sold increased 29.8 percent compared to the same period one year ago, and lamb dollars spent increased 38.2 percent to $40.5 million.
 
The IRI/FreshLook analysis also looked at the longer term. Comparison of the current 52-week period to the prior 52 weeks shows a 6.8 percent increase in lamb pounds sold and a 9.8 percent increase in sales dollars.
 
The increase in pounds of lamb sold and lamb dollars spent showed across the board when designated by cut. The loin continues to be the most popular cut with consumers, accounting for 24.9 percent of pounds of lamb sold. It was followed by the rib at 21.3 percent. The two cuts saw an increase in pounds of lamb sold of 13.1 percent and 12 percent respectively during the same time in 2019.
 
The northeast region continues to outsell other areas of the country, accounting for 29.8 percent of lamb dollar sales with a 10.1 percent increase during the same 52-week period one year ago. The southeast and the mid-south came in second and third in percentage of lamb market, but it was California that showed the most impressive growth at 16.7 percent. There, the 13-week second quarter growth came in at 39.5 percent more lamb pounds consumed and 37 percent more dollars spent than the second quarter of 2019, while the four-week period of June 15 to July 12 saw a 60.7 percent increase in pounds consumed and a 64.8 percent increase in lamb dollars spent during the same period in the prior year.
 
Even the region with the lowest lamb market share – the plains – saw a 1.6 percent increase in lamb dollar sales during the second quarter 2020 compared with the second quarter of 2019.



Ranch Group: NCBA's Voluntary Market Reform Defies Logic

This month the National Cattlemen's Beef Association (NCBA), which has resisted any efforts to legislatively require the nation's largest beef packers to replenish the cattle industry's most important price discovery market - the negotiated cash market, has instead proposed a voluntary plan, called the 75% Plan, that it believes will restore the industry's lost competition.

But the 75% Plan doesn't even purport to restore the volume of the negotiated cash market even to the minimal level the group's economist recommended to achieve "robust" competition.

R-CALF USA CEO Bill Bullard said, "Instead, the NCBA's plan proposes that achieving only three-fourths of the minimum level recommended by their economist, and doing so only some of the time, is good enough for the U.S. cattle industry."

Bullard said the entire plan defies logic and common sense because it sets a threshold for minimum purchases in the negotiated cash market at levels well below the average volume in that market during the past three years, which he said was a period marked by a severely dysfunctional marketplace that has caused serious financial losses to America's independent cattle producers.  

"This plan is much worse than if it simply enshrined the status quo. It's a recipe for disaster for the U.S. cattle industry," Bullard commented.

The NCBA plan relies first on economist Steven Koontz's prediction that the nation's broken cattle market will become robustly competitive if the largest beef packers purchase a total of only 86,000 cattle each week from the competitive cash market. But the NCBA plan requires the largest beef packers to only purchase 75% of that minimum number, or 64,500 cattle, during some, but not all weeks.

According to U.S. Department of Agriculture (USDA) data, during the past three years (Oct. 16, 2017 - Oct. 21, 2020) the national weekly volume in both the negotiated cash market and the negotiated grid market - the two markets covered by the NCBA plan - averaged over 117,000 head per week.  

Bullard said this means the targets in the NCBA plan will result in the packers purchasing far fewer cattle in the competitive price discovery market than they purchased on average during the past three years - a period when the U.S. cattle market demonstrated a complete and utter lack of competition.

According to Bullard, if the NCBA plan had been in effect last week, the week ending October 18, when the actual volume in the national negotiated cash and negotiated grid markets was at 37%, and the week when cattle prices inexplicably fell nearly $3 per cwt below the three-year average, the packers would have been in full compliance even if they had purchased only half of what they actually purchased. He said this is because the NCBA plan's triggers for last week would have been set at only an 18% volume level for the two negotiated markets, which is a volume level even lower than the 21% level in 2015, when cattle prices fell further and faster than anytime in history.  

"This plan is an absolute bust," Bullard said adding, "And the alarming thing is that it is predicated on the same faulty economic predictions that underpin the recent bill introduced by Senator Deb Fischer (R-NE), whose proposal likewise relies on the illogical theory that you can somehow increase marketplace competition lost by a shrinking negotiated cash market by further shrinking the negotiated cash market."

Bullard said that years of inattention has resulted in today's fundamentally broken marketplace - a marketplace that has been chronically dysfunctional for years and now is acutely dysfunctional.

"There are no amounts of tweaks that can repair today's broken market. Today we need decisive congressional action to shock the market into becoming once again a competitive market, and the only meaningful solution offered so far is the Grassley/Tester bill that requires the packers to purchase at least 50% of their cattle in the negotiated cash market," Bullard concluded.