Thursday November 5 Ag News

 Deep-Pit Cattle Barn Open House in Dodge on Nov 7

Central Confinement Services and the Paul & Justin Shonka family invite you to an open house of a brand new 625 head, deep-pit, cattle finishing barn.  The building is a 68 foot by 304 foot beef finisher facility.  The barn has a 12 foot deep pit, with a gable ridge vent design.  

The tour takes place on Saturday, November 7th from 11am to 2pm at 1843 18th Road, Dodge, NE.  Self guided tours start at 11am, lunch will be served at noon, and a discussion about facility features will follow, rounded out by a producer question and answer session.  

Some of the event sponsors inlcude the Alliance for the Future of Agriculture in Nebraska, Kent, Helms Construction & Fencing, Nutrient Advisors, Homestead Bank, JnJ Construction, Signet, and EasyFix.  



PILOT SYSTEM MONITORS TWEETS FOR DROUGHT EARLY WARNING

Millions use Twitter to share their rapid-fire opinions, observations and connections to real-time events. And natural disasters are often major conversation starters. With that in mind, National Drought Mitigation Center assistant director Kelly Helm Smith wanted to see what tweets said about the impacts of drought, and whether tweets could contribute to a drought early warning system.

Smith embarked on a pilot study, the results of which were recently published in the Bulletin of the American Meteorological Society. She developed a method to monitor the rate of tweets about drought over time, state-by-state, allowing her to detect when #drought tweets unexpectedly surge. Tweets, as a measure of fluctuating attention, could contribute to a drought early warning system. In the process, Smith examined two years’ worth of drought tweets, with conversations ranging from agricultural to cultural, in different parts of the country.

“Barely made it to stubble-high by the 4th of July” one Plains state farmer tweeted in the midst of a fast-moving flash drought in summer 2017.

“CA had a great winter but the drought has left an indelible mark on our water use psyche,” a California agency tweeted, even as the state emerged from a multi-year drought.

The National Drought Mitigation Center, housed in the University of Nebraska–Lincoln’s School of Natural Resources, has monitored news stories for drought impacts since 2005. Smith said monitoring social media for evidence of drought impacts is in some ways an extension of that effort, and that her work came about in response to state climatologists and others asking about ways to search and archive drought tweets.

“A lot of hazard researchers are trying to figure out what we can learn from social media,” Smith said. “Social media has a real role to play in both assessing the extent and impacts of disasters and in warning people about disasters. Seismologists, for example, report that social media sometimes provides faster earthquake notifications than seismographs."

Along with conducting research on drought impacts and planning, Smith is the drought center’s communications coordinator. Each Thursday, the center tweets the latest U.S. Drought Monitor, a map that shows the latest drought conditions across the U.S. and its territories. It leads to a lot of chatter, and Smith’s study confirmed that the number of drought tweets is highest on Thursdays.

The drought search term, Smith said, is a noisy one. Sports teams endure championship droughts. The lovelorn weather romantic droughts. Smith’s system searched for tweets that featured hashtags such as #drought, #NEdrought or #drought17 to limit results to more relevant conversations. Many Twitter-savvy farmers used hashtags with the year included — #drought17, #drought2018 — to tell the world what they were experiencing. Those tweets often provided original information, such as video shot from the back of a tractor or descriptions of field conditions.

“Just as no single hydrometeorological indicator is considered sufficient to capture all aspects of drought, #drought tweets are one more metric to consider, and represent a real addition to quantifiable drought impact data,” Smith wrote in the study. “Drought tweets reflect needs and interests identified by agencies and organizations involved in water and drought management, as well as on-the-ground experiences of agricultural producers and others whose lives and livelihoods are affected by drought. Tweets are a measurement of drought impact, even when the impact is primarily an awareness of a problem that may require attention.”

One of the original employees when the National Drought Mitigation Center opened in 1995, Smith started her working life as a newspaper reporter and public relations professional. She later earned a degree in community and regional planning and recently completed a doctoral degree in human dimensions of natural resources.

Though the study is published, the work is ongoing and will include exploration of larger Twitter searches. Meanwhile, on Mondays, Smith emails a map of the past week’s #drought tweets to a listserv of drought experts and state climatologists.

Co-authors of the article are Drew Tyre, quantitative ecologist in the School of Natural Resources; Zhenghong Tang, professor and director of the Community and Regional Planning program at Nebraska; Mike Hayes, climatologist in the School of Natural Resources; and Adnan Akyuz, North Dakota state climatologist. Tweet collection has been partially supported by the U.S. Department of Agriculture.

The study is available at the Bulletin of the American Meteorological Society website, https://journals.ametsoc.org/bams.



Nebraska Beef Industry Scholars Summit

This year the Nebraska Beef Industry Scholars class will host two webinars on November 9th and 11th beggining at 7:00pm central. The webinar is free to attend but you must register.

NBIS Beef Summit - Coronavirus & Policy in the beef industry - Nov 9
This is evening 1 of the Nebraska Beef Industry Beef Scholars Beef Summit where speakers will discuss effects of coronavirus on markets and policy affecting the beef industry. Impacts of the 2020 election results will also be discussed.
Register here: https://unl.zoom.us/webinar/register/WN_fSHcGzHORPab3spg6m23XQ

NBIS Beef Summit - Sustainability in the Beef Industry - Nov 11
This is evening 2 of the Nebraska Beef Industry Beef Scholars Beef Summit where speakers will discuss aspects of sustainability in the beef industry.  
Register here: https://unl.zoom.us/webinar/register/WN_QsBC0fTFQ2eL2A9HjckFZg



Nebraska Ethanol Board Meeting: Wednesday, December 9

The Nebraska Ethanol Board will meet in Lincoln at 1 p.m. at Hyatt Place (600 Q Street). We're utilizing three large adjoined meeting rooms to be able to maintain proper distancing, sit six-feet apart, and adhere to COVID recommended guidelines.



Beef Quality Assurance Trainings Continue in November

Cattle producers and allied agribusiness professionals still have time to renew or certify their training in Beef Quality Assurance.  Most major packers and a sizable majority of local livestock auctions require or encourage their feedlot suppliers to have a current BQA certificate.

BQA trainings provide more than just market access, according to Beth Doran, beef specialist with Iowa State University Extension and Outreach.

“There is an economic incentive to be BQA certified," she said. "Research analyzing feeder cattle sold through video auctions indicates there was a premium of $2.71 per cwt. or $16.80 per head for cattle that had BQA listed in the lot description.”

Three late November trainings will be held in northwest Iowa as follows:
    Nov. 23, 10 a.m.-noon, ISU Extension and Outreach – Woodbury County, 4728 Southern Hills Drive, Sioux City.  RSVP to 712-276-2157.
    Nov. 23, 1-3 p.m., ISU Extension and Outreach – Woodbury County, 4728 Southern Hills Drive, Sioux City.  RSVP to 712-276-2157.
    Nov. 24, 10 a.m.-noon, ISU Western Research and Demonstration Farm, County Highway E34, Castana.  RSVP to 712-423-2175.    

To attend a session, RSVP to the site you plan to attend. Because of COVID-19, attendance at each site is limited and face masks are encouraged. Walk-ins will not be allowed. There is no cost to attend.

The BQA certification program is designed to provide producers with new information on carcass quality, cattle handling, health management, emergency action planning and industry issues. The workshops are a collaborative effort of Iowa State University Extension and Outreach, the Iowa Beef Center and the Iowa Beef Industry Council.

For those unable to attend an in-person training, BQA certification may be completed online at https://bqa.beeflearningcenter.org/ at no charge. For more information, contact Doran at 712-737-4230 or email doranb@iastate.edu.



Euken-Myers Family Region 3 Environmental Stewardship Award Program Winners

Located in Lewis, Iowa the Euken-Myers family runs a cow-calf operation, feedlot and row-crop farm. Randy and Jill Euken along with their daughter and son-in-law Michelle and Steve Myers have a long family history of being a part of a row-crop and cattle farm. More than 100 years later Michelle and Steve are the 5th generation in the family to earn a living from the farm.

Randy and Jill’s goal has always been to raise livestock and crops successfully enough to pass the farm to the next generation. To accomplish this goal, the family had to look at the challenges they face and put sustainable practices into place that would make them successful.

The Euken’s focused on decreasing erosion on farmland, improving soil quality, maximizing use of feedlot nutrients, purchasing manure from neighboring cattle farmers, reducing run-off in their feedlot, and improving pasture management to increase the carrying load of their land.

The family has been able to see their accomplishments and measure their success through the years. Since changing their management style, they have seen improvements in soil health, weaning weights have increased and their carbon footprint at the feedlot has decreased.

“Being a leader in conservation means being willing to try new things and explore ideas that might not yet be popular,” said Bill Northey, Former Secretary, Iowa Department of Agriculture and Land Stewardship. “As pioneers of conservation, the Euken family embodies the spirit of what it means to be good stewards.”



Find the Right Fit for Soil Health Practices

How to create the mindset needed to evaluate soil systems and develop a customized approach for adopting soil health practices that meet on-farm goals is the topic of the Iowa Learning Farms webinar at noon on Wednesday, Nov.11.

There isn’t a prescription for the adoption of soil health practices; it’s more of a pursuit. Farmers find a practice that could accomplish an on-farm goal and then adjust that approach as they learn how it fits their system. Abbey Wick, North Dakota State University soil health specialist and associate professor, will share approaches farmers have used in the northern plains and how they’ve tweaked those approaches to achieve their goals.

“The use of soil health practices varies by region, by farm and by field — learning how to think through a problem and pull together a set of practices is how new management approaches are successfully adopted on-farm,” said Wick, who works alongside farmers, consultants, industry and researchers to come up with both science-based and practical soil health management approaches that can be adopted on-farm with reduced risk.  

Wick emphasized the importance of the thought process around soil health for the successful adoption of practices. She hopes the webinar will help participants think through some ideas to use on their farm, or in their program, research or business.

To participate in the live webinar, shortly before noon on Nov. 11, click this URL, or type this web address into your internet browser: https://iastate.zoom.us/j/364284172

Or, go to https://iastate.zoom.us/join and enter meeting ID: 364 284 172.

Or, join from a dial-in phone line by dialing: +1 312 626 6799 or +1 646 876 9923; Meeting ID: 364 284 172.

The webinar will also be recorded and archived on the ILF website, so that it can be watched at any time. Archived webinars are available at https://www.iowalearningfarms.org/page/webinars.

A Certified Crop Adviser board-approved continuing education unit has been applied for, for those who are able to participate in the live webinar. Information about how to apply to receive the unit (if approved) will be provided at the end of the live webinar.



IA Farmers and Landowners Who Seed Fall Cover Crops Can Apply for Crop Insurance Discounts’

Iowa Secretary of Agriculture Mike Naig announced today that farmers who plant cover crops this fall may be eligible for a $5 per acre discount on their spring 2021 cash crop insurance premiums. To qualify, the cover crop acres cannot be enrolled in other state or federal cover crop cost share programs.

“The 2020 growing season posed significant weather challenges but farmers can adopt cover crops to mitigate some of the damage to their fields,” said Secretary Naig. “In addition to their livestock grazing and weed management benefits, cover crops reduce soil erosion and improve soil health, which will help prepare the fields for spring planting.”

Cover crops, like rye and oats, prevent soil erosion and lock in nutrients, especially during extreme weather events. Cover crops are also proven to reduce nitrogen loads by 28-31 percent and phosphorous loads by 29 percent, which helps improve water quality.
Program Details

This is the fourth year the crop insurance discount program is being administered by the Iowa Department of Agriculture and Land Stewardship and USDA Risk Management Agency (RMA). Interest in the program continues to grow and new farmers and fields join each year. To date, about 1,700 farmers and nearly 500,000 acres of cover crops have participated in the program.

Farmers can sign up now for the cover crop insurance premium reduction program at apply.cleanwateriowa.org. Applications will be accepted through Jan. 15, 2021.

Some insurance policies may be excluded, like Whole-Farm Revenue Protection, or those covered through written agreements. Participants must follow all existing farming practices required by their policy and work with their insurance agencies to maintain eligibility.

Farmers should to visit their local USDA service center offices to learn more about other cost share funding available to support the implementation of conservation practices.



Pork Exports Remain on Record Pace through September; Beef Exports Trend Lower

September exports of U.S. pork increased 10% year-over-year, keeping 2020 exports on a record pace, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were fairly steady with last year in major Asian markets but trended lower overall.

Pork exports reached 222,475 metric tons (mt) in September, with value increasing 6% to $563.2 million. Shipments to China/Hong Kong remained higher than a year ago in September but made up a smaller share of the global total compared to recent months, as exports set a new record for Canada and increased year-over-year to Japan, Vietnam, the Philippines, Taiwan, Chile and the Caribbean.

Through the first three quarters of the year, pork exports were 16% ahead of last year's record pace in both volume (2.22 million mt) and value ($5.69 billion). The increases were even stronger for pork muscle cuts, jumping 22% to 1.87 million mt valued at $4.93 billion (up 19%).

"Exporting countries are watching the hog production recovery in China very closely, because we know its demand for imported pork is moderating," said USMEF President and CEO Dan Halstrom. "While USMEF is pleased to see U.S. pork exports to China/Hong Kong maintaining a strong pace, it is vitally important that our export destinations remain diversified. The U.S. industry continues to pursue this goal aggressively, both in the Asia Pacific region and the Western Hemisphere."

September beef exports were down 6% from a year ago to 103,277 mt, valued at $600.9 million (down 9%). Coming off record performances in August, exports to South Korea and Taiwan remained strong and exports set another new record in China. However, COVID-19 related obstacles continued to negatively impact demand for U.S. beef in several key markets, especially Mexico, Central America and the Caribbean.

"Although restaurant traffic and foodservice activity are not back to normal in most Asian markets, USMEF is very encouraged by the recovery in Asia and this was especially evident in the strong August and September exports of U.S. beef to Korea, Taiwan and China," Halstrom said. "As we close out the year, U.S. beef has a great opportunity to capture greater market share in Asia due to tightening supplies from Australia. While it will require more time, we also expect U.S. beef to regain momentum in regions where beef demand depends more heavily on travel and tourism, and where e-commerce channels are not as well-developed."

For January through September, beef exports trailed last year's pace by 8% in volume (911,936 mt) and 9% in value ($5.55 billion).

September exports of U.S. lamb were higher than a year ago in both volume (1,971 mt, up 37%) and value ($2 million, up 13%). Driven by strong demand in Mexico, January-September exports increased 36% to 16,399 mt, though value was down 1% to $19 million. In addition to Mexico, lamb muscle cut exports increased to Bermuda, Hong Kong, Japan and Kuwait.



 CHS Reports Fiscal Year 2020 Net Income of $422.4 million

CHS Inc., the nation's leading agribusiness cooperative, today reported net income of $422.4 million for the fiscal year that ended Aug. 31, 2020. This compares to fiscal year 2019 net income of $829.9 million.

Key financial drivers for fiscal year 2020 include:
    Consolidated revenues of $28.4 billion for fiscal year 2020 compared to $31.9 billion for fiscal year 2019.
    Strong supply chain performance in our propane business driven by efficiently sourced propane to customers to meet strong crop drying and home heating demand that contributed to improved results especially during the first half of fiscal year 2020.
    Less advantageous market conditions in our refined fuels business, primarily driven by the COVID-19 pandemic, resulted in volume and price declines that significantly reduced earnings compared to the prior year.
    Poor weather conditions negatively impacted our Ag segment's operations during the first half of fiscal year 2020, resulting in lower crop yields and poor grain quality following a late harvest and lower crop nutrient sales during fall 2019.
    Improved weather conditions during the 2020 spring planting season drove increased earnings across much of our Ag segment in the second half of fiscal year 2020.

"Our focus remains on serving our owners, local cooperatives and our customers around the world, keeping our employees safe and ensuring the company emerges stronger after the pandemic," said Jay Debertin, president and CEO of CHS Inc. "Since March, we have been focused on taking care of those who depend on us, maintaining financial strength and planning for the future."

"We delivered record earnings in propane and benefited from good weather that led to a good planting season. Consistent with our focus on innovation in agriculture, we were awarded a patent for a crop input product that can help plants access more phosphorus and, in turn, have better yield. Continued work on integration of the West Central acquisition of 2019 and leveraging commercial synergies resulted in strong crop protection sales, and we moved increased volumes of grain because of improved trade relations," he said. "Like many companies, we were not immune to the challenges posed by the impacts of the pandemic especially in our refined fuels business and with our Ventura Foods joint venture."

"Our continued investment in digital capabilities helps us anticipate and meet owners' and customers' needs by leveraging the strength of our supply chain," he said. "Enhancing our customers' experience through solutions using efficient, effective data across our supply chain encourages our customers to make CHS their first choice."

Fiscal Year 2020 Business Segment Results

Energy
Pretax earnings of $225.3 million represent a $392.9 million decrease versus the prior year and reflect:
    Significantly less advantageous market conditions in refined fuels business compared to the prior year that resulted in lower margins and volumes. These market conditions were driven by decreased crude oil differentials on heavy Canadian crude oil processed by our refineries and decreased crack spreads, which were both negatively impacted by demand shock associated with COVID-19.
    Positive resolution of an $80.8 million gain contingency associated with a tax credit during fiscal year 2019 that did not reoccur during fiscal year 2020.
    Increased propane volumes and improved propane margins during fiscal year 2020 helped partially offset decreased overall earnings in our Energy segment.

Ag
Pretax earnings of $53.7 million represent a $10.7 million increase versus the prior fiscal year and reflect:
    Improved margins across certain Ag segment businesses including feed and farm supplies, grain and oilseed and renewable fuels. These improvements resulted from optimism for improved trade relations between the United States and foreign trade partners in the second half of fiscal 2020 and favorable weather conditions for spring planting during fiscal year 2020.
    Decreased agronomy and processing and food ingredients margins, due to an oversupply in the market and the COVID-19 pandemic, respectively.
    Lower volumes driven by a combination of poor weather conditions in fiscal year 2019 that led to a smaller harvest, impacts from the COVID-19 pandemic on our processing and food ingredients business and global trade tensions between the United States and foreign trading partners, particularly in the first half of fiscal 2020.

Nitrogen Production
Pretax earnings of $51.8 million represent a $21.0 million decrease versus the prior year and reflect:
    Lower income associated with reduced sale prices of urea and urea ammonium nitrate, which are produced and sold by CF Nitrogen, of which CHS is a partial owner.

Corporate and Other
Pretax earnings of $56 million represent a $25.5 million decrease compared to the prior fiscal year and reflect:
    Lower earnings in our Ventura Foods joint venture, which experienced significantly reduced demand in the food service industry during the COVID-19 pandemic.
    Decreased financing business income due to lower interest rates during fiscal year 2020 compared to fiscal year 2019.

Based on fiscal year 2020 earnings, CHS expects to return an estimated $30 million in cash patronage and $33 million in equity redemptions to member cooperatives and individual owners in fiscal year 2021.



NCBA Highlights Beef and Produce Pairings on Healthy Plates with #UnitedOnThePlate Partnership

In an effort to continue to highlight beef’s place on the plate, the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, has partnered with the Produce for Better Health Foundation (PBH) to celebrate how beef, vegetables and fruits are #UnitedOnThePlate. The #UnitedOnThePlate campaign focuses on rallying food and health experts on social media and educating consumers about how delicious, nutrient-rich beef brings more to the plate, when paired with fruits and vegetables as part of a healthy, balanced diet.

To reach as many consumers as possible and highlight beef in new ways, the partnership will leverage the PBH digital and social media channels, which reach more than 1 million consumers as well as its Fruit & Vegetable Ambassadors In Action influencer network. This network is comprised of food, culinary, nutrition, fitness, and lifestyle influencers with sizeable followings.

The #UnitedOnThePlate activations include:

September:
    National Fruits & Veggies Month: Better Together
        September kicked off the partnership with content reinforcing the nutrition and flavor benefits of uniting beef and produce on the plate – the perfect duo for healthier, happier lives. National Fruits & Veggies Month, when fruits and veggies are being celebrated nationwide, presents a great opportunity to spotlight how pairing produce with other nutrient-rich foods, like beef, can contribute to a healthy lifestyle

October:
    #UnitedOnThePlate in My State
        Fruit & Vegetable Ambassadors In Action members from Missouri and Texas will create and share recipes featuring unique regional produce that complements beef and highlighting how beef and produce are raised and harvested by farmers and ranchers in their home states.
        A blog post from PBH’s President and CEO, Wendy Reinhardt Kapsak, MS, RDN, titled “The Ultimate Trifecta: Fruits, Vegetables + Beef. United On The Plate,” highlights how beef and produce are perfect partners for health and well-being.

November:
    Beef + Produce Pairings
        A dedicated content series featuring beef and produce pairings – tips, recipes and meal planning ideas will be on fruitsandveggies.org.
        Additionally, Fruit & Vegetable Ambassadors In Action members will share their shopping baskets and pantries featuring beef and produce, encouraging their followers to do the same.
    Beef in the Early Years
        Rounding out beef nutrition education, two Fruit & Vegetable Ambassadors In Action members will lead two Cook-and-Chat Live posts from PBH’s channels, focusing on how beef and produce pair together as the perfect foods for growing toddlers and children.

“PBH is a unique nutrition partner for NCBA, to extend its efforts to demonstrate beef’s foundational role in health,” said Shalene McNeill, Ph.D., RD, executive director, nutrition science, health & wellness, at NCBA. “And, at a time when “plant-based” diets are gaining attention, PBH is dedicated to partnering with groups such as NCBA and creating content that reminds consumers – and the influencers who reach them – about the importance of building balanced, healthy plates featuring fruits, vegetables and beef, along with other nutrient-rich foods.”

“It's clear: beef and produce truly enhance each other – and that’s why I’m so excited about our partnership that will celebrate how we’re #UnitedOnThePlate!” says Wendy Reinhardt Kapsak, MS, RDN and president and CEO of PBH.  “Over the next several weeks, the partnership will highlight delicious recipes, perfect pairing ideas and new and unique meal hacks (not just salads my friends!), reinforcing how beef and produce add more nutrition and taste to the plate, with unique flavor explosions.”

Educating consumers about the nutritional benefits of beef continues to be a top priority for the National Cattlemen’s Beef Association’s Beef Checkoff-funded programming To learn more about beef’s role in a healthy diet and find hundreds of great tasting healthy recipes, visit beefitswhatsfordinner.com.



USDA Dairy Products September 2020 Production Highlights

Total cheese output (excluding cottage cheese) was 1.09 billion pounds, 1.1 percent above September 2019 and 0.6 percent above August 2020.  Italian type cheese production totaled 463 million pounds, 1.7 percent below September 2019 but 4.4 percent above August 2020.  American type cheese production totaled 432 million pounds, 4.0 percent above September 2019 but 3.3 percent below August 2020.  Butter production was 152 million pounds, 5.4 percent above September 2019 and 0.3 percent above August 2020.

Dry milk products (comparisons in percentage with September 2019)
Nonfat dry milk, human - 124 million pounds, up 5.5 percent.
Skim milk powder - 72.5 million pounds, up 23.3 percent.

Whey products (comparisons in percentage with September 2019)
Dry whey, total - 74.9 million pounds, down 17.3 percent.
Lactose, human and animal - 97.1 million pounds, up 1.7 percent.
Whey protein concentrate, total - 39.1 million pounds, down 2.3 percent.

Frozen products (comparisons in percentage with September 2019)
Ice cream, regular (hard) - 63.4 million gallons, up 9.1 percent.
Ice cream, lowfat (total) - 40.0 million gallons, up 7.4 percent.
Sherbet (hard) - 3.09 million gallons, up 14.3 percent.
Frozen yogurt (total) - 4.50 million gallons, down 0.4 percent.



Council Outlines Trade Barriers In Comments Submitted To USTR

The U.S. Grains Council (USGC) recently submitted comments to the Office of the U.S. Trade Representative (USTR) highlighting significant trade barriers facing exports of U.S. coarse grains, ethanol and co-products. The Council has contributed comments on this topic to USTR for more than a decade, detailing constraints the organization works to address in its export market development activities and recommending complimentary U.S. government action.

“We believe that resolution of the broad range of trade barriers outlined in this report could bring about a correction in the coarse grain trade trends of the last decade, restore market access and allow U.S. producers and agribusinesses to effectively explore and capture new markets and business opportunities,” the Council wrote in the submitted comments. “The Council has worked cooperatively with USTR on a number of these issues. We look forward to continued collaboration.”

A report on trade barriers facing U.S. goods and services has been issued by USTR for at least the last 35 years, in part to fulfill a legal requirement of the president of the United States to report to the U.S. Congress on that topic annually. Contributions from organizations like the Council help USTR provide quantifiable impacts of trade barriers on U.S. exports and detail feasible actions that can be taken to eliminate those barriers.

“It is important to understand the specific complexities of each trade barrier in each market,” said Floyd Gaibler, USGC director of trade policy and biotechnology. “USTR and U.S. Department of Agriculture (USDA) officials use this information in their continuous, cooperative work with our overseas offices to increase market access for U.S. agricultural products.”

Among the highest priority items for the Council are persistent non-tariff issues like biotech approval policies. Delays in biotech approvals in Mexico, asynchronous biotech approvals in Brazil and worldwide irregularity on the regulation of plant breeding innovations (PBI) all inhibit U.S. agricultural products from entering these large markets.

Unjustified restrictions on genetically modified products have seen dramatic impacts on U.S. corn sales to the European Union (EU). The United States was once the largest foreign supplier of corn to the EU, but there have been no substantial exports to the EU since the late 1990s when these policies were put into place. USGC analysis estimates these asynchronous biotech regulatory processes have contributed to a 100-million-metric-ton loss in U.S. corn exports, a value exceeding $15 billion.

An increasing area of concern is related to regulatory restrictions on crop protection products, including maximum residue levels (MRLs) set lower than internationally recognized standards in the EU.

In addition to these non-tariff barriers to trade, countervailing duties and value-added taxes put U.S. agricultural products at a financial disadvantage. Similarly, import tariffs and tariff rate quotas also directly affect the price of U.S. coarse grains and co-products, removing competitive advantages on price.

Together, these comments help provide input not only for USTR, but also for the Council’s Trade Policy Advisory Team (A-team) and for country and regional offices developing trade policy strategies for the Council’s operational blueprint, the Unified Export Strategy (UES). These comments also contribute to the Council’s participation in the USDA’s Grains and Oilseeds Agricultural Technical Advisory Committee (ATAC).



U.S. Pork Export Outlook: How to Save Our Own Bacon as China Rebuilds

U.S. pork exports to China have skyrocketed this year as African Swine Fever (ASF) eroded two-thirds of China’s hog herd and drove its hog prices to record highs. Greater China now accounts for nearly 8% of U.S. pork production, compared to around just 2% in 2018.

However, according to a new report from CoBank’s Knowledge Exchange, China is making progress rebuilding its hog herd, jeopardizing the U.S. export picture over the next 3 to 5 years.

“China’s pork market is showing the early signs of herd rebuilding and hog prices have fallen 30% from their peak a year ago,” said Will Sawyer, lead economist, animal protein, CoBank. “This increases the risk of an oversupply of U.S. pork if exports to other markets, primarily in Asia and Latin America, are unable to absorb this supply.”

The loss of exports to China would likely lead to difficult conditions for U.S. hog producers and processors alike. The U.S. pork industry has built multiple new plants over the past four years, increasing packing capacity by 12%, with much of this new capacity eyed for international markets.

Following the discovery of ASF in Germany in September, many key pork importing countries have banned German pork, opening the window for increased shipments from the U.S. and other key pork exporters. This provides the U.S. a short-term opportunity to increase market share in China, as Germany represents approximately 14% of China’s pork imports. Although the ban is unlikely to last forever, and with China’s hog prices showing signs of weakening, the U.S. may still feel the pressure of reduced Chinese pork imports.

While lower trade flows with China to pre-ASF levels would bring a good deal of stress to the U.S. pork sector, there are strategies and changes the pork industry can make now to help dampen that impact. Shifting trade relationships from transactional to strategic, pursuing trade diversification and building the U.S. market are among those strategies.

The greatest opportunity and possible challenge for the U.S. pork sector is the U.S. market itself. With few exceptions over the last 30 years, annual per capita pork consumption in the U.S. has been range bound between 48 and 52 pounds.

Spurring new or increased demand from other markets is another industry imperative. These growth opportunities may come from U.S. pork’s core trade partners, but by also expanding trade opportunities with secondary customers. Markets like Japan, Korea and Mexico are critical in the next few years. The U.S. pork sector also has great export opportunities in numerous smaller markets, especially in the Caribbean, and Central and South America.

U.S. packers have opportunities to strengthen their relationships with importers and customers of their end products. With all major pork-producing countries eyeing the Chinese market, suppliers with strategic relationships in China will fare much better during the down cycle.

“One of the many lessons from the COVID-19 pandemic of 2020 is the necessity of a strong relationship between producer and packer,” added Sawyer. “This is true in both beef and pork, as those producers who had a deep and strategic relationship with their packer fared far better during the plant shutdowns and slowdowns in April and May 2020.”

The relationship between a hog producer and their packer can become strategic in many ways, whether that be by contract, ownership, geography, size, or efficiency. In an environment where demand is falling as exports shrink, producers with the deepest relationships will better weather any changes in plant capacity that may come.



U.S Ag Exports Continue to Thrive During the COVID-19 Pandemic

Despite the COVID-19 pandemic, U.S. ag exports generated more than $270 billion for the U.S. economy since 2019, proving that the ag sector is resilient under any circumstances, according to trade experts.

“Today, more than 20% of what U.S. farmers produce is exported,” said Veronica Nigh, an American Farm Bureau Federation economist. “America continues to be in a strong position, especially as things normalize after COVID-19.”

The engine driving this positive outlook is the unflappable productivity of the American farmer. “There are 330 million people in the U.S., but American farmers raise enough to feed 2 billion people a year,” said Melissa George Kessler, director of strategic relations for the U.S. Grains Council.

All these exports help drive both the U.S. farm economy and the general economy. Roughly 1 million jobs are supported by U.S. agricultural exports, including 764,000 in the nonfarm sector, according to AgExportsCount.com. These include jobs related to supplying seed and crop protection products, transporting ag commodities, and processing and distributing agricultural products for export.

The key to fostering a healthy export pipeline is growing the most marketable crops possible through elite seed genetics, trusted crop protection products and open international trade options. A case in point is the use of fungicides in corn to boost productivity, said Lynn Sandlin, business intelligence manager at Syngenta.

“Twenty years ago, hardly any farmers were using fungicides in corn,” Sandlin said. “Now, growers have Syngenta products like Trivapro® and Miravis® Neo brand fungicides for broad-spectrum disease control and plant-health benefits. We want to help farmers grow the very best crop possible, in terms of quality and yield potential.”

Maximizing crop quality helps pave the way for more export demand, as consistent supply and quality lay a solid foundation for relationships. “We’re on a mission to develop markets, enable trade and improve lives,” Kessler said. “We’ll continue to build long-term relationships abroad as we play the long-term game to benefit U.S. farmers.”



Decision Time: Self-propelled Sprayer Ownership vs. Custom Applicators

How do you know if your operation is in the sweet spot for owning a sprayer? Depending on a number of variables, sprayer ownership can be a net positive investment with as few as three applications per year.1 Case IH application experts can help guide your decision whether to purchase a sprayer by breaking down the following:
    How to determine if this investment is right for your operation
    How to calculate the cost difference between hiring custom applicators and spraying your own
    The agronomic benefits of owning a self-propelled sprayer  

Here are three areas to evaluate when considering a self-propelled sprayer purchase:

1. Determine acres farmed vs. acres sprayed.
When considering self-propelled sprayer ownership, it’s important to determine not how many acres you farm but, rather, how many acres you spray. Because of the number of applications needed across your crops throughout the growing season, the number of acres sprayed is likely much greater than you actually farm on your operation.

To determine if purchasing self-propelled spray equipment pencils out for your farming operation, calculate the number of acres you spray each year. Consider the first scenario below. If a producer farms 3,000 acres of corn and 2,000 acres of soybeans, with two applications for corn and three applications for soybeans, the total acres sprayed amounts to 12,000 acres — a number much greater than the 5,000 total acres farmed.

2. Calculate the cost difference.  
Once you determine the number of acres sprayed on your operation, it’s time to calculate the cost difference. If, for example, a producer pays $6.50 per acre of application sprayed across 12,000 total, that’s a total cost of $78,000 for custom application in one growing season.* These costs could instead be put toward an equipment payment.

On the other hand, when considering the annual payment on a sprayer purchase of $350,000 — with 15% down and 0% financing for the first 24 months — the annual payment on a sprayer would come to approximately $62,300.* With a lower annual payment, owning a sprayer would help you save on expenses — and the more acres you spray, the better return on your investment.

3. Understand ownership benefits.
The ability to get crop nutrients and protectants applied at the right agronomic moment is critical to maximizing yields, and it can reduce the stress of waiting for the application to be made. Most often, producers are facing long days and short application windows. That’s why it’s important to consider a self-propelled sprayer that’s agronomically designed and easy to operate.

With the broadest lineup of application equipment in the company’s history available today, along with leading technology and support, Case IH has a self-propelled sprayer solution that can maximize application efficiency and productivity on any operation.

To learn more about the variables that go into owning a self-propelled sprayer, or to download the Case IH spreadsheet to run the numbers for your operation, visit caseih.com/ownasprayer.