Thursday October 8 Ag News

Extension webinar to offer updates on farm income, USDA program payments

A Nebraska Extension webinar on Thursday at noon will cover current USDA program details and payment projections while also focusing on updated farm income projections.

Farm program payments are a significant part of the bottom line for farmers and ranchers, whether from existing commodity programs, agricultural disaster assistance or trade and COVID-19 relief. The webinar will include an updated review of ARC and PLC payments due to producers this month for the 2019 crop year. A broader outlook for farm income based on national projections from USDA in early September, along with state-level analysis, will provide a baseline for economic outlook and farm policy issues and decisions moving forward.

The presentation will be led by Brad Lubben, associate professor and extension policy specialist in the University of Nebraska-Lincoln’s Department of Agricultural Economics. It is presented as part of the Agricultural Economics Extension Farm and Ranch Management weekly webinar series.

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



2021 Nebraska Cattlemen Foundation Retail Value Steer Challenge
 
The Nebraska Cattlemen Foundation (NCF) is seeking donations of steers for its Annual Retail Value Steer Challenge (RVSC) feeding competition. This is the primary fundraiser for the Foundation and by participating in the RVSC you join other Nebraska cattle producers to support NCF projects. Funds from this event support:
    Youth and Adult Leadership Programs
    NCF Education Programs - Scholarships
    NCF Research Programs and Infrastructure Projects
    History Preservation
    Judging Teams at University of Nebraska, Lincoln, Northeast Community College, Norfolk and Nebraska College of Technical Agriculture, Curtis

Your involvement ensures these programs succeed. You also receive complete carcass data on your steer or steers and the chance to win prize money. And, you are helping the state’s leading industry sponsor programs that benefit our industry. Contributors should contact their tax professional as to the tax deductible status of this contribution. NCF is a 501 (3) C entity.

NCF welcomes steer donations by individuals, businesses, groups of individuals or businesses and NC affiliates. Donors can donate their own steer or purchase one from the Foundation for $950. Donors do not have to own the whole steer if they would prefer to only own a quarter, third, or half .

Winners will be announced at the Nebraska Cattlemen Midyear Conference in June, 2021.

For more information or to enter a steer contact Lee Weide at 402.475.2333, lweide@necattlemen.org or Jana Jensen, NC Foundation Fundraising Coordinator, at 308.588.6299, janajensen@nebcommfound.org.



YCC Nominations are Open

The next generation of Nebraska Cattlemen will ensure Nebraska remains the global epicenter of the beef industry.

Identifying and educating leaders to help guide and strengthen our beef industry is important to the future of Nebraska’s agriculture. The goal of the Young Cattlemen’s Conference is to deliver a strong foundation of industry knowledge to young and emerging leaders. YCC provides the leadership tools these producers need to build a successful future.

Get more details here.... https://nebraskacattlemen.org/wp-content/uploads/2020/09/2021-ycc-brochure.pdf.  Nomination deadline:  Monday, October 26.  



GRAZING VALUE OF GRAIN SORGHUM STOVER  
Daren Redfearn, UNL Extension  
 
There are sizeable acres of sorghum residue available for grazing this year and, similar to corn, sorghum stover can be a valuable winter forage. How does sorghum stover compare to corn residue for winter grazing?
 
Both corn residue and sorghum stover can sustain mid- to late-gestation cattle without supplementation during early grazing. Sorghum leaves have similar quality to corn husks and leaves. And just like corn residue, the quality decreases over time.
 
Stocking rates for grazed sorghum stover are calculated using grain yield. For example, stocking rates for sorghum stover that produced 100 bushels of grain per acre will support grazing at 1 acre for 1 cow for 1 month. However, different herbicides are used for sorghum than corn, so it is important to check the labels to be sure they are labelled for grazing.
 
Unlike corn residue, sorghum stover has a threat of prussic acid toxicity immediately following a frost since sorghum plants are often still green at harvest. In fact, it carries the greatest risk of all sorghum species. Following a frost, it is important to wait 7 days after a killing freeze to make sure the possibility of prussic acid toxicity is reduced. The possibility of nitrate toxicity exists, especially if cattle are forced to graze the lower part of the stems.
 
Sorghum stover has several positive characteristics compared to corn residue. Sorghum stems are a little higher in quality than the corn stem, but care is still needed if cows are forced to graze the lower stems. Sorghum stover is not on the ground like corn residue, so there is less loss to trampling and fewer issues with mud, if we have a wet fall. Sorghum stover also tends to remain above any snow that falls during winter. Finally, spilled sorghum grain is a little safer than corn and not as likely to cause acidosis or founder as corn grain.



CropsTV Transitions Live Meetings to Online Delivery

Iowa State University Extension and Outreach is announcing a new educational program aimed at delivering crop production information directly to farmers and agribusinesses.

CropsTV provides the convenience of viewing at home, office or anywhere there’s an internet connection. Live webinars allow interaction with specialists, presenters and panelists. On-demand viewing of topics allows schedule flexibility. Participants can select from over 30 topics from Iowa State University faculty and staff as well as invited guest presenters. The 10-week program launches Dec. 1, 2020.

CropsTV replaces the Integrated Crop Management Conference, originally scheduled for Dec. 2-3, and the Crop Advantage Series, scheduled for January at 14 Iowa locations. These two programs are temporarily suspended due to safety concerns for attendees and staff as the COVID-19 pandemic continues, and are scheduled to return next year. CropsTV was developed to reach this audience conveniently, safely and effectively in the absence of these two popular programs.

“As pandemic uncertainty continues, there is still a need for science-based agronomic information,” said Mark Licht, assistant professor in agronomy and cropping systems specialist with Iowa State University Extension and Outreach. “The ICM Conference and Crop Advantage meetings were very effective at providing timely information to producers. CropsTV will provide the same top-quality programming Iowa farmers and agronomists have come to expect from ISU Extension and Outreach in a safe and accessible format.”

The 10-week CropsTV season begins Dec. 1, 2020, and continues through Feb. 4, 2021. Live webinars are scheduled each week on Tuesday, Wednesday and Thursday from 9-10 a.m. Recordings of previous webinars, as well as additional topics, will be available for on-demand viewing throughout the program. Webinars will be a combination of live presentations and pre-recorded content, with a live question and answer session allowing discussion and interaction with presenters.

“The combination of live and on-demand content is ideal for our busy clientele,” said Meaghan Anderson, field agronomist with Iowa State University Extension and Outreach. “We also have the opportunity to reach a wider audience and provide more guest presentations from invited speakers with this format.”

Financial support for CropsTV is provided by the Iowa Corn Growers Association and the Iowa Soybean Association.

"We encourage Iowa farmers to participate in CropTV to benefit from the abundance of information it provides from ISU faculty and staff as well as invited guest presenters," said Carl Jardon, Iowa Corn Growers Association president and farmer from Randolph, Iowa. "Being the series is online, this allows for greater flexibility and farmers can adapt based on their schedules."

The current year required change – both on the part of farmers and agribusinesses, and those who deliver information.

“Farmers know how important it is to adapt and persevere,” said Jeff Jorgenson, Iowa Soybean Association president and Sidney, Iowa, soybean farmer. “CropsTV is that mentality in action. I look forward to seeing soybean growers benefit from this quality programming now made even more accessible to every farmer in Iowa.”

The program will be a familiar blend of research updates and guest speakers, similar to the ICM Conference, and management topics and local research results, similar to the Crop Advantage Series. Certified Crop Adviser credits will be available for all presentations, with at least 15 available prior to the end of the year. Announcement of the program and schedule will be in mid-October.

Registration for CropsTV is $45 and includes all live webinar broadcasts, on-demand viewing of previous webinars and over 30 CCA credits. Online registration opens mid-November 2020.

Additional information is available at www.aep.iastate.edu/cropstv.



Visits from USDA Leaders Provide Opportunities to Highlight Important Issues in Iowa Agriculture

Iowa Secretary of Agriculture Mike Naig joined two senior officials from the United States Department of Agriculture (USDA) at stops in central Iowa today to raise awareness about some of the most pressing issues facing the Iowa agriculture community.

“USDA leaders have made several visits to Iowa over the past few months to survey the damage caused by the drought and derecho. I am proud of our partnership with USDA and appreciate the ongoing support they have shown our farmers,” said Secretary Naig. “These visits provide opportunities to engage in meaningful conversations that underscore the topics that are important to our farmers and the resources they need for recovery and profitability.”

Support for Renewable Fuels
Secretary Naig visited a Casey’s General Store in Ankeny where U.S. Secretary of Agriculture Sonny Perdue announced the USDA is making a significant investment in Iowa’s renewable fuels industry through the Higher Blends Infrastructure Incentive Program (HBIIP). The biofuels program provides funding to help fuel blenders and retailers install and convert storage tanks and pumps to sell higher blends of ethanol and biodiesel.

“An investment in renewable fuels is an investment in Iowa. The industry creates tens of thousands of jobs, additional markets for our corn and soybean producers to sell their grain, and cleaner-burning, more affordable fuels for Iowa consumers,” said Secretary Naig. “I want to thank the Trump administration and Secretary Perdue for their continued support of the biofuels industry and the Iowa agriculture community.”

Iowa is the nation’s leading renewable fuels producer. The industry contributes more than $5 billion to the state’s economy and supports more than 48,000 jobs, according to the Iowa Renewable Fuels Association.

Crop Insurance Coverage
Secretary Naig met with USDA Risk Management Agency (RMA) Administrator Martin Barbre and a small group of farmers affected by the derecho. In addition to touring farms that sustained damage during the storm, the leaders held a roundtable with the farmers to discuss crop insurance coverage needs and challenges. The event, held at Key Coop in Nevada, allowed farmers to share their experiences working with their insurance adjusters following the derecho. Several farmers also detailed how the drought- and derecho-damaged crops are affecting this year’s harvest.

“During the first several weeks following the derecho, I traveled around the state talking with farmers about the damage sustained to their fields and grain bins,” said Secretary Naig. “We anticipated the downed crops might create some issues during harvest but it’s very impactful to hear first-hand accounts of the challenges farmers are facing. I’m glad Administrator Barbre and I were able to participate in these conversations to gain a better understanding of what’s happening in the fields. I will continue working alongside the USDA to identify solutions and get farmers the support they need as they continue their recovery efforts.”



Trump Administration Invests Up To $100 Million to Increase American Biofuel Sales

U.S. Secretary of Agriculture Sonny Perdue announced today that the U.S. Department of Agriculture (USDA) has invested $22 million out of the up to $100 million in grants available to increase American ethanol and biodiesel sales. These funds were made available through the Higher Blends Infrastructure Incentive Program (HBIIP) to recipients in 14 states. The initial $22 million in HBIIP investments are projected to increase ethanol demand by nearly 150 million gallons annually.

“Investments made through the Higher Blends Infrastructure Incentive Program are helping rural communities build stronger economies and will give consumers more choices when they fill up at the pump,” Secretary Perdue said. “President Trump has expanded ethanol use by unleashing year-round E15, and the result is more demand for American farmers and more affordable fuel for American consumers.”

USDA is funding projects in California, Florida, Iowa, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New York, Ohio, Utah and Wisconsin. Examples of projects include:

    In Nebraska, Aurora Cooperative will use a $300,000 Rural Development investment to create infrastructure to expand the sale and use of renewable fuels.  This project will replace 12 dispensers and 10 storage tanks at 10 fueling stations in Nebraska. Aurora Cooperative Elevator Company is the owner of 10 or more fueling stations.  This project is expected to increase the amount of ethanol sold by 791,510 gallons per year.

USDA plans on announcing the remaining HBIIP investments in the coming weeks.

The Higher Blends Infrastructure Incentive Program helps transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to the installation of fuel pumps, related equipment and infrastructure.

Eligible applicants are vehicle fueling facilities, including, but not limited to, local fueling stations/locations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners and/or distribution facilities. Higher biofuel blends are fuels containing ethanol greater than 10 percent by volume and/or fuels containing biodiesel blends greater than five percent by volume.



USDA Announces $22 Million in Biofuel Infrastructure Grants
Fifteen Iowa Sites Receive Awards

Today the U.S. Department of Agriculture announced the recipients of $22 million worth of Higher Blend Infrastructure Incentive Program grants to upgrade fueling infrastructure and make it possible for fuel retailers across 14 states to offer higher blends of biofuels. This is the first round of awards out of the $100 million program.

In response to today’s announcement, Iowa Renewable Fuels Association Executive Director Monte Shaw made the following statement:

“Today we see the fruits of an effort that began just over a year ago when a coalition of Midwestern lawmakers, led by Senator Joni Ernst, met with President Donald Trump to discuss restoring biofuel demand destroyed by EPA’s abuse of RFS exemptions. IRFA members thank Senator Ernst for her leadership in ensuring the Trump administration prioritized biofuels infrastructure and thank Secretary Perdue and his team for following through on President Trump’s commitment to grow consumer access to higher biofuel blends around the country.

“Finally, we thank Iowa retailers for stepping up to participate in the program. The 15 Iowa fuel suppliers receiving grants today are leaders in bringing cleaner-burning lower-cost fuel options to consumers.”  



Biodiesel Industry Welcomes USDA Higher Blends Infrastructure Grants

Today, the National Biodiesel Board, Iowa Biodiesel Board, and Iowa Soybean Association welcomed Agriculture Secretary Sonny Perdue's announcement of cost-sharing grants to support infrastructure that will increase consumer access to higher blends of renewable fuels. Leaders of the groups joined Secretary Perdue in Ankeny, Iowa, as he announced the grant awards.

NBB CEO Donnell Rehagen stated, "On behalf of NBB's members across the country, I want to thank Secretary Sonny Perdue for following through on this commitment to biodiesel producers and farmers. The biodiesel industry is pursuing a vision for sustainable growth to more than 6 billion gallons by the end of this decade. The cost-sharing grants USDA is beginning to announce will help us bring consumers the better, cleaner transportation and heating fuels they are looking for."

Grant Kimberley, executive director of the Iowa Biodiesel Board, said, "Infrastructure is the key to ensuring we can deliver low carbon fuels to the nation, and these grants will help take us to the next level with that in Iowa and beyond. As the top biodiesel-producing state, Iowa sits at the heart of this energy transformation and our producers and farmers stand ready to grow. We thank USDA for leading this infrastructure effort."

Iowa Soybean Association President Jeff Jorgenson said, "Today's announcement is encouraging for soybean farmers. Efforts to make homegrown, soy-based biodiesel more readily available is a win for farmers and consumers. Biodiesel provides an important domestic market for our soybeans and consumers an environmentally friendly fuel choice. As farmers harvest another soybean crop, we're mindful of the critical demand and price impact of biodiesel, accounting for nearly $1.15 of the current market price for soybeans."

Of the $100 million USDA has provided for this program, $14 million is intended to support infrastructure for biodiesel blends above 5%, such as B20. The grants will be matched by private and state investments.

Iowa's biodiesel plants produced about 345 million gallons of biodiesel in 2019, making it the number one biodiesel-producing state. About half of on-road diesel fuel gallons sold in Iowa contain B11 or higher, according to the state Department of Revenue. A study by ABF Economics shows biodiesel supports about 3,875 full time equivalent jobs and contributes $489 million to the state's Gross Domestic Product annually.



ACE Helping Retailers Move More Ethanol Gallons Via USDA’s Higher Blends Infrastructure Inventive Program

Today, the U.S. Department of Agriculture (USDA) is holding events at fuel retail stations in Minnesota and Iowa and has invited the American Coalition for Ethanol (ACE) and other stakeholders to join them for an announcement from Secretary Perdue regarding USDA’s Higher Blends Infrastructure Incentive Program (HBIIP). ACE Senior Vice President and Market Development Director Ron Lamberty, a former convenience store owner, operator, and supplier himself, will attend the Iowa event. Senator Chuck Grassley (R-IA) will also attend, and Secretary Perdue and Senator Grassley will tour ACE plant member Golden Grain Energy, LLC in Mason City, Iowa, prior to the announcement at a Casey’s location in Ankeny, Iowa.

“ACE thanks Secretary Perdue for his leadership on HBIIP,” Lamberty said. “We were happy to play a part in helping several marketers work through the application process, including a long-time Nebraska retailer, who applied to add 11 more E15 and flex fuel sites, and to assist San Diego E85 wholesaler Pearson Fuels as they applied for HBIIP funds for 122 California retail E85 locations. We’re pleased both companies were approved to receive HBIIP funding.”

“Pearson recently announced their 200th E85 location and sold nearly 35 million gallons of E85 in California last year. That’s 29 million gallons of ethanol – 25 million more than if those customers had used E10,” Lamberty added. “Pearson does a great job marketing E85, and if these new locations perform like the others have, that’s 20 to 25 million new gallons of E85 in California. The E85 Pearson sells could use the entire output of a small ethanol plant within 18 months. That’s as much new ethanol volume as a billion gallons of E15.”

“The HBIIP application process wasn’t simple, and we appreciate ACE’s assistance in navigating that process,” said Greg Jones, Pearson’s Director of Business Development. “ACE’s video series breaking down the grant application, and Ron Lamberty’s help translating USDA’s HBIIP terminology and rules for us allowed us to submit grant requests for quite a few more locations than we had originally planned.”

ACE fielded information requests from fuel marketers from Connecticut to California, introduced some retailers to ethanol supporters with funding for grant writing, and assisted others with the application process. “We received feedback about the application process from many of the marketers we worked with and look forward to working with USDA on ways to make any future grant programs more navigable for small retailers,” Lamberty said.

Following USDA’s rollout of HBIIP, ACE launched a series of fuel marketer-focused videos produced in coordination with USDA on the flexfuelforward.com website, along with a digital advertising campaign to encourage retailers to apply for a HBIIP grant. ACE has now shifted focus to helping retailers understand they may already have the equipment they need to add E15 by encouraging retailers to use the Flex Check E15 compatibility tool.



RFA: New Infrastructure Grants Will Promote Higher Ethanol Blends

At a news conference today in southern Minnesota, U.S. Secretary of Agriculture Sonny Perdue announced a series of grants as part of the Higher Blends Infrastructure Incentive Program, or HBIIP. These awards will provide retailers with a way to offer more choices to consumers at the pump, the Renewable Fuels Association said, noting that there was a 100% success rate for the retailers who received grant application assistance from RFA.

Present for the USDA news conference were RFA Board Members Rick Schwarck, of Absolute Energy, and Randy Doyal, of Al-Corn Clean Fuel, two nearby ethanol plants. Sec. Perdue’s announcement tour today also includes an afternoon visit of RFA member Golden Grain Energy, in Mason City, Iowa, with Sen. Chuck Grassley.

The HBIIP announcement was made at Trail’s Travel Center in Albert Lea, Minn., one of the sites assisted by RFA in the HBIIP application process.

“We would like to sincerely thank the Renewable Fuels Association and Cassie Mullen for their incredible support and guidance throughout the USDA HBIIP application process,” said Rocky Trail, owner of Trail’s Travel Center. “To our surprise and delight they handled almost every aspect of the process and at the end of the day because of their assistance we ultimately walked away with a winning application and were granted 100% of the funds we applied for. Because of their support, in the very near future Trail’s Travel Center, the largest truck stop in the state of Minnesota, will expand even further with the exciting addition of higher blends of ethanol.”

With support from the National Corn Growers Association, RFA worked with Christianson PLLP and others to assist three dozen retailer companies in the grant process prior to the Aug. 13 application deadline. Submitted—and successful—applications assisted by RFA cover more than 200 locations across 21 states. Combined, these locations sell more than 250 million gallons of gasoline annually. RFA provided services and assistance for $21 million in grant requests, which are being now being fulfilled and will be matched with another $31 million in private funding for a total investment in higher blends infrastructure of more than $52 million.

“We were pleased to be able to help a large number of retailers who were excited to take part in this program,” said Mullen, RFA’s Director of Market Development. “With today’s announcement, we’re on track to see more fuel locations with higher ethanol blends soon, supporting rural America’s farmers and ethanol producers. We also want to thank USDA again for launching the HBIIP program and understanding the fundamental link between renewable fuels and the farm economy.”

RFA’s work included outreach to retailers via paid and earned media and educating hundreds of them in a series of webinars. The association also created a password-protected website for sharing documents and other digital tools for them to use in the grant application process. Technical reports were prepared for each company, each covering 35 to 50 pages in length, and site-specific environmental reports were submitted covering more than 2,200 pages.



Growth Energy Celebrates New Grants for Retail Expansion of Biofuel Blends

Today, Growth Energy welcomed the U.S. Department of Agriculture’s (USDA) announcement of grants under the Higher Blends Infrastructure Incentive Program (HBIIP). Growth Energy's unmatched network of both large and small retail partners secured nearly $30 million in grants for over 290 sites selling more than 400 million gallons of gasoline annually.

“This announcement offers a welcome ray of hope during an otherwise rough year for America’s farmers, retailers, and biofuel producers,” said Emily Skor, CEO of Growth Energy. “It represents a major milestone in our efforts to ensure more Americans can access cleaner and more affordable ethanol-blended fuel. We’re grateful to Secretary Perdue, USDA, and our congressional champions who are working tirelessly to make higher ethanol blends a success.”

“We’re especially proud of Growth Energy’s incredible network of retail partners, who bring Unleaded88 (E15) to consumers across the nation and are paving the way for higher blends of ethanol,” she added.

Retailers cheered the announcement, including HBIIP recipients that will receive funding for infrastructure projects to facilitate increased sales of higher biofuel blends (E15/B20 or higher):

“Casey’s is rooted in local towns across the Midwest, making farmers and their families part of our community,” said Darren Rebelez, President and CEO of Casey’s. “This grant will allow us to expand availability of higher ethanol blends to our guests. We appreciate the continued support of Growth Energy and their efforts.”

“Royal Farms appreciates the USDA HBIIP grant that will help us grow our Regular 88 (E15) and FlexFuel business,” said Thomas Ruszin, Fuel and Environmental Leader for Royal Farms. "Growth Energy’s support in obtaining our grant was instrumental, and we look forward to our continued relationship with the organization.”

“Thorntons thanks Growth Energy for their partnership in applying for the Higher Blends Infrastructure Incentive Program to increase our higher blend fuel offerings for our guests,” said Lee Stevens, Manager, Fuel Supply for Thorntons, LLC. “We look forward to continuing our work with Growth Energy to provide the best offerings possible.”

“Our sincere appreciation to Growth Energy for their time, industry expertise, and technical support with the application process which resulted in Southeast Petro Distributors, Inc securing $3.5 million in grant funding,” said Shawn Tingle, Director of Logistics for Southeast Petro Distributors, Inc. “Southeast Petro Distributors Inc, is continually looking towards the future, and making higher blends available to our customers as alternative fuels allows us to offer a product that is a better for the environment, the air we breathe, and supports our local economies.”

"We are extremely grateful to have received funding for the HBIIP program through USDA,” said Jason and Susan Liter, owners of Liter's VP, LLC. “Our successful application would not have been possible without the help of Growth Energy. They were diligent in working with us and able to answer many questions and help with all aspects of the process, from beginning to end! Growth Energy is without a doubt a tremendous asset to the biofuel industry."

“United Dairy Farmers recognizes there was a segment of the fuels market that we were not serving with our existing store fuel offering, those customers interested in Unleaded88/E15 and E85 with the benefits that higher blends offer,” said Drew Brower, VP of Fuel Operations for United Dairy Farmers. “As an early adopter, we could benefit by bringing these products to market first. The funding through the Higher Blends Infrastructure Incentive Program through the USDA allows us to expand our overall footprint and bring higher blends to our customer base. Growth Energy has been a resourceful partner during this process."

Background:
The USDA’s HBIIP will expand domestic ethanol and biodiesel availability by supporting infrastructure projects to facilitate increased sales of higher biofuel blends (E15/B20 or higher). This effort will build on biofuels infrastructure investments and experience gained through the Biofuels Infrastructure Partnership (BIP).

Growth Energy’s pioneering work with Prime the Pump helped make BIP a resounding success, supporting the installation of E15 at retailers large and small in size and diverse in geographic location, including Casey’s, Sheetz, Kwik Trip, Minnoco, Cumberland Farms, Family Express, Kum & Go, Murphy USA, NuVu Fuels, Protec Fuel, Pump & Pantry, Racetrac, Rutters, QuikTrip, and United Dairy Farmers. There are now more than 2,240 retail locations offering E15 and in 2020 - despite COVID and the worst fuel drop in three decades - retail sites offering E15 have increased 10%.



Dairy Margin Coverage Program Enrollment for 2021 Opens Oct. 13

The U.S. Department of Agriculture (USDA) will begin accepting applications for the Dairy Margin Coverage (DMC) program on Tuesday, October 13, 2020 for 2021 enrollment.

“This year has been a market roller coaster for the dairy industry, and the Dairy Margin Coverage program is a valuable tool dairy producers can use to manage risk,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation, during a roundtable at a dairy in Chippewa Falls, Wisconsin. “We were excited to roll out this new and improved program through the 2018 Farm Bill, and if you haven’t enrolled in previous years, we highly encourage you to check it out.”

Signup runs through Dec. 11, 2020. DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. DMC payments triggered for seven months in 2019 and three months so far in 2020.  More than 23,000 operations enrolled in DMC in 2019, and more than 13,000 in 2020.

Updated Dairy Decision Tool
To determine the appropriate level of coverage for a specific dairy operation, producers can utilize the recently updated online dairy decision tool. The decision tool is designed to assist producers with calculating total premium costs and administrative fees associated with participation in DMC. An informational video is available, too.

Improvements to the decision tool, made in cooperation with representatives from the University of Minnesota and University of Wisconsin, include historical analysis that illustrates what DMC indemnity payments might have been had the program been available over the previous two decades.  The analysis indicates that over the course of time, DMC payments made to producers exceed premiums paid. These decision tool enhancements provide a more comprehensive decision support experience for producers considering DMC.

Additional Support for Dairy Producers
In addition to DMC, USDA offers a variety of programs that have helped dairy producers, including insurance, disaster assistance, and conservation programs. Most recently, the Coronavirus Food Assistance Program 1 provided $1.75 billion in direct relief to dairy producers who faced price declines and additional marketing costs due to COVID-19 in early 2020. Now, signup is underway for the Coronavirus Food Assistance Program 2, which provides another round of assistance for dairy producers and many other eligible producers.



CoBank Quarterly: U.S. Economic Recovery Sputtering as COVID-19 Persists  

The U.S. economy has been improving since late spring, but progress has slowed measurably, and the economy remains fragile. Another broad fiscal relief package appears to be off the table at least in the near-term, which means the currently sluggish economy will likely end the year in a fizzle.

According to a new Quarterly report from CoBank’s Knowledge Exchange, rural America is experiencing a dichotomy of improving industry fundamentals and a surge of COVID cases. Rural communities are now the source of a disproportionate number of new cases, just as many Americans are beginning to spend much more time indoors.

“The good news, at least from an economic standpoint, is that many rural industries have begun to turn the corner,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange division. “This is particularly true in agriculture. A weaker, steady dollar has supported a price recovery in most agricultural commodities. And despite the myriad of challenges they’ve faced in 2020, essential rural industries are finding new ways to survive and, in some cases, thrive.”

The U.S. ethanol sector continued to recover during the third quarter to a new baseline level equaling roughly 90% of pre-COVID demand. Recent developments surrounding E15, small refinery exemptions, federal relief and another delay on Brazilian import duties appear to be incremental positives for the ethanol complex.

Large grain sales to China, and recent reductions in ending stocks and expected production, have provided a relief rally for U.S. grain farmers. Strong export sales were a major driver of recent positive commodity price performance. However, China has a propensity to announce but not close grain purchases, so whether China will ultimately import the grain remains a lingering question.

Farm supply retailers navigated through a volatile, yet ultimately successful growing season. The current season ended with an expected strong harvest despite crop damage and stress caused by extreme storm activity and dry weather. Direct government payments to agriculture producers throughout 2020 could result in higher prepayments to farm supply cooperatives during the fourth quarter in advance of the spring 2021 planting season.

The U.S. beef complex ended the third quarter in a far better position than where it started. Over the last three months, boxed beef cutout has climbed 5%. This helped lift cattle prices by 10% since the low around Independence Day. Profitability for cattle feeders has improved to break-even levels on a cash basis and packer margins have remained elevated.

Renewed optimism for trade is the bright spot for the U.S. pork sector after pork exports slowed significantly over the summer. Germany discovered African Swine Fever (ASF) in wild boars, leading many key pork importing markets to ban pork exports from Germany. Lean hog futures have spiked on this news. Hog producers are expected to lose $7/head in the coming quarter and see positive margins of $15 to $20 per head in the first half of 2021.

Foodservice continues to be a difficult channel for U.S. animal protein, but the chicken sector is faring better than most, thanks to quick serve restaurants and take-out dining. The third quarter brought improved pricing and margins for the U.S. chicken industry. Most producers were modestly profitable over the summer. The weak spot in the U.S. chicken complex continues to be dark meat chicken prices.

Dairy markets remained mired in volatility last quarter with milk and cheese prices ending on a strong note. The recovery in milk prices has already incentivized more milk production on the farm. Federal programs also helped provide financial cushion for some struggling dairy producers last quarter. Butter and cream face an uphill battle with the uncertainty over consumer demand during the important holiday season when demand for these products peaks.

The reopening of restaurants in the third quarter was welcomed news for specialty crop producers and processors with food service contracts. Although the expected rise in COVID-19 cases this fall and winter would further strain the restaurant sector and close more schools, causing greater uncertainty. Produce sales at retail grocery stores, however, remain solidly above year-ago levels and are widely expected to remain at higher levels than prior years for the foreseeable future.

Despite strong Chinese purchases, total cotton demand remains weak. Total U.S. upland cotton export sales for the 2020-21 marketing year still lag last year’s pace by 17%. Global retail demand for clothing and apparel has yet to recover from the economic shock of the COVID-19 pandemic.

U.S. rough rice futures ended the third quarter near contract highs in the pan-commodity rally with support from a weaker U.S. dollar. Rising global prices, notably in Brazil, hint at a potential improvement in export demand for U.S. rice in Q4.

The electricity sector’s transition from coal to clean energy is happening more quickly than expected, according to September data. The pandemic has reduced loads and intensified fuel competition, with coal-to-gas switching idling a significant amount of coal capacity this year. 2020 will likely prove a watershed year, with a newly reinforced acknowledgement of the “changing of the guard” paving the way for faster energy transition.

The full Quarterly report is available on cobank.com. Each CoBank Quarterly provides updates and an outlook for the Global and U.S. Economic Environment; U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Other Crops; Specialty Crops and Rural Infrastructure Industries.



U.S. Exports Of Feed Grains In All Forms (GIAF) End Marketing Year At Nearly 101 Million Metric Tons

U.S. exports of grain in all forms (GIAF) reached nearly 101 million metric tons, equivalent to 3.97 billion bushels, by the end of the 2019/2020 marketing year, according to data from the U.S. Department of Agriculture (USDA) and analysis by the U.S. Grains Council (USGC). While the export total declined five percent year-over-year, GIAF exports still represented the fifth highest year on record.

Tracking GIAF exports provides a more holistic view of the feed grains produced by U.S. farmers and consumed by overseas customers than sales of one grain product alone. To do so, the Council reviews exports across 10 product sectors, including raw grain exports of U.S. corn, barley and sorghum and value-added products including ethanol, distiller’s dried grains with solubles (DDGS) and other co-products as well as the corn equivalent of exported meat products.

“There is no other way to frame it: the last marketing year was extremely difficult,” said Ryan LeGrand, USGC president and chief executive officer. “Our corn crop faced serious problems during planting, the growing season and harvest but the resiliency and forward-looking approach of the U.S. farmer remained ever-present.

“Feed grain exports started slowly but the last half of the year saw a rapid surge in sales and shipments, providing a strong finish to the 2019/2020 marketing year. As move into 2020/2021, the Council is encouraged by the near-record sales happening already in the current marketing year.”

U.S. corn exports represented the largest percentage decline in 2019/2020, down 14 percent year-over-year due to competitive South American supplies. Exports for the year totaled 45.1 million tons (1.78 billion bushels). Mexico retained its position as the top market for U.S. corn at 14.5 million tons (571 million bushels), down 10 percent year-over-year. Notably, Colombia increased imports slightly to 4.91 million tons (193 million bushels). China skyrocketed into the top five U.S. corn buyers at 2.09 million tons (82.2 million bushels), a dramatic increase from 259,000 tons (11.6 million bushels) the year prior.

The outbreak of COVID-19 knocked back U.S. ethanol production and global demand for fuel ethanol. However, thanks to a surge in demand for industrial uses like sanitizer, ethanol exports ended the year at 1.36 billion gallons (482 million bushels in corn equivalent), down 12 percent year-over-year. Exports to Brazil also saw a substantial decline of nearly 30 percent year-over-year to 263 million gallons (93.3 million bushels in corn equivalent). As a result, Canada claimed the top market slot at 321 million gallons (114 million bushels in corn equivalent).

Reduced production from U.S. ethanol plants in spring and summer 2020 had a ripple effect on the availability and prices of U.S. DDGS. As a result, U.S. DDGS exports ended the year down 6.6 percent at 10.5 million tons. Mexico remained the top buyer, although total imports of 1.8 million tons represented nearly an 11 percent decline year-over-year. By contrast, several top buyers of U.S. DDGS saw increases from the previous year, including South Korea, Thailand, Turkey, Japan, the Philippines and New Zealand.

U.S. exports of barley and barley products also declined 7.5 percent year-over-year to 493,000 tons (22.6 million bushels). Mexico was the top buyer at 350,000 tons (16.1 million bushels), down year-over-year due to COVID-19 restrictions that limited beer production during summer 2020.

One sector seeing a bounce upward for the 2019/2020 marketing year was U.S. sorghum exports, coming in at 5.15 million tons (203 million bushels). China was the driver, importing 3.67 million tons (144 million bushels). While this is a substantial increase from the previous year, exports remain well below previous highs. Exports to Mexico also increased 21.5 percent to 594,000 tons (23.4 million bushels), and smaller buyers like Mexico and Japan also saw significant increases.

The 2020/2021 marketing year officially began on Sept.. 1, 2020, with the first month of USDA export data to be released in November.



Final Rule Fails to Address Structural Flaws in Conservation Stewardship Program

The U.S. Department of Agriculture (USDA) today released a final rule detailing updates to its Conservation Stewardship Program (CSP) as directed by the 2018 Farm Bill.

In comparison to the interim rule, the final version places a greater emphasis on soil health – an issue that National Farmers Union (NFU) had encouraged the agency to give more consideration in comments submitted earlier this year. However, the organization was disappointed that USDA did not incorporate many of its other requests, including support for long-term stewardship and lower payment limits for participants. NFU President Rob Larew highlighted those concerns in a statement:

“As farmers cope with increasingly severe environmental challenges, they are investing more time, money, and expertise in conserving natural resources, mitigating climate change, and adapting to greater weather extremes. While the Conservation Stewardship Program is providing essential support for those efforts, some modest changes would help maximize the environmental impact of every dollar spent.

“We are pleased that USDA incorporated some improvements in its final rule, most notably its inclusion of soil health as a priority. However, the rule does not elaborate on how this goal will be achieved. Moving forward, we encourage the agency to provide more specifics about the ways in which the program will help farmers build soil health in order to sequester atmospheric carbon, increase yields, and prevent erosion.

“There are several other measures that would enhance CSP’s efficacy, as we enumerated in our earlier comments. Currently, the contract evaluation process gives preference to first-time applicants over previous recipients, essentially penalizing those engaged in long-term stewardship. To encourage an ongoing commitment to conservation, USDA should instead judge applications on their overall environmental benefits. Furthermore, the program disproportionately helps the largest farms by allowing payments up to $400,000 for joint operations. CSP statute clearly limits payments to $200,000 for any operation, and USDA should enforce that for all farming operations, regardless of size.

“To our disappointment, USDA failed to include either of these recommendations in its final rule. As a result, many of CSP’s structural flaws will go unaddressed, and the program will continue to fall short of its potential.”



Boehringer Ingelheim Animal Health launches vaccine to protect poultry from three diseases

Boehringer Ingelheim Animal Health launched an innovative, first-of-its-kind vaccine in the United States today to protect poultry from three diseases.

VAXXITEK® HVT+IBD+ILT is the first vaccine to offer protection in one shot from Infectious Laryngotracheitis, Marek's Disease and Infectious Bursal Disease (classic and variant types).

"This new trivalent vaccine provides a strong immune foundation, optimizes protection for flocks and offers reliable protection," said Matt Nelson, who leads Boehringer Ingelheim Animal Health's U.S. poultry business.

The three-in-one vaccine is the latest addition in the VAXXITEK® family of vaccines for poultry. It uses the same bioengineering platform as VAXXITEK® HVT+IBD, which has protected more than 100 billion birds from Marek's Disease and Infectious Bursal Disease in more than 75 countries since its introduction in 2006.

Infectious Laryngotracheitis (ILT) is an acute viral respiratory disease in poultry caused by Gallid herpesvirus type 1. There is no effective treatment for ILT, and the virus persists in affected birds for life. The disease can cause major economic losses.

An existing, non-vectored vaccine from Boehringer Ingelheim Animal Health protects against ILT. The new trivalent is a vectored vaccine that provides protection against ILT along with two other health threats for poultry: Marek's Disease and Infectious Bursal Disease.

The company will manufacture its new vaccine in Gainesville, Georgia, where it makes 60 billion doses of poultry vaccine a year for use in the United States and about 60 other countries.

After launching in the United States, Boehringer Ingelheim Animal Health plans to seek regulatory approval to offer VAXXITEK® HVT+IBD+ILT in other countries.