Monday December 21 Ag News

 DHS, HUSKER OFFICIALS DISCUSS SECURITY OF NATION’S FOOD SYSTEM

David Richardson, assistant secretary for the Department of Homeland Security’s Countering Weapons of Mass Destruction Office, visited the University of Nebraska–Lincoln on Dec. 18 to discuss the security and safety of the U.S. food system.

Richardson, along with Deputy Assistant Secretary John Waters, toured the Nebraska Veterinary Diagnostic Center, Animal Science Complex, Nebraska Center for Virology, Greenhouse Innovation Center, Food Processing Center and Spidercam Plant Imaging Facility. During the tour, he met with IANR faculty and administrators to discuss the role of the university and its researchers in the security of the food supply.

“This was an opportunity to highlight our capacity — through integrated IANR programs and infrastructure — to contribute to the security of the food, agriculture and veterinary systems in the United States,” said Archie Clutter, director of Nebraska’s Agricultural Research Division. “UNL is already engaged in meaningful work in this area, through surveillance, early detection and mitigation of plant and animal diseases, and to prevent breaches of food safety.”

Andy Benson, director of the Nebraska Food for Health Center, was among a dozen or so IANR researchers who discussed their research with Richardson. Benson explained the center’s mission to improve human health by linking agriculture and food production to wellness and disease prevention through microbiome research, as well as how the center’s work relates to national security.

Center researchers are looking at the development of antimicrobial resistance and how and where it tends to develop, Benson said. They are engaged in whole genome sequencing of pathogens, which can help researchers understand how those pathogens cause disease. They’re also looking at the development of crops designed to promote health of the microbiome, which would add value to American agriculture.

During a discussion with Benson and other IANR faculty, Richardson said the expertise he encountered at the university would help in an upcoming preparedness exercise and other efforts to improve security of the nation’s food system.

“Today — this — this is where it is at,” Richardson said. “The caliber of expertise Nebraska has here is something I definitely want to tap into for our upcoming exercise. We have to be prepared in this space of ag, vet and food. We have to know what is a realistic way to prepare ourselves and that our responders are really ready. The people here can help us do that.”

Mike Boehm, Harlan Vice Chancellor for IANR and NU vice president for agriculture and natural resources, said Richardson’s visit provided a chance for researchers to reflect on how their work contributes to national security — and to continue to think about it in the future.

“Whether we realize it or not, our teaching, research and extension efforts lead to more secure food, agricultural and veterinary systems in America,” Boehm said.

Richardson’s stop in Lincoln was part of a two-day visit to Nebraska, during which he also visited the University of Nebraska Medical Center, University of Nebraska at Omaha and NU’s National Strategic Research Institute.



Livestock Producers Have More Risk Management Possibilities

The use of crop insurance by farmers is pretty common across the United States. Livestock insurance, not so much.

A Kansas State University agricultural economist believes, however, that recent improvements in risk management products for livestock producers by the USDA's Risk Management Agency may make them worth a second look.

"We like to say the federal crop insurance program is the foundation for the federal farm safety net in the U.S., but there are a lot of products in the federal crop insurance program that can be used by livestock producers," said Jenny Ifft, associate professor and agricultural policy specialist with K-State Research and Extension.

Livestock insurance programs have not been embraced like crop insurance has for several reasons, said Ifft, noting that in many cases 90% of eligible crops are covered by crop insurance, but the use of livestock insurance is much less common.

Livestock insurance products haven't been as developed as long and historically, participation has been capped or limited by either the number of head or amount of dollars, and the cost sharing with the federal government has been lower, she said.

"The way I like to look at insurance is that farmers are always making decisions about the future and you try to make the best decisions you can with the best information you have," Ifft said.

"Information on costs, prices, weather and what kind of production you expect -- all of those things are uncertain and can be different in the future from what you expect today. The point of insurance is to get you closer to what you expect for cost, prices and production, so that you can make better decisions today."

She outlined three primary livestock insurance choices.

1) Whole Farm Revenue Protection has been in existence since 2015. It's not widely used in Kansas with only six farms covered in 2020 under such a policy. Public awareness and knowledge about this type of coverage is still limited. This type of coverage was mostly developed for the purpose of providing an insurance option for diversified farming operations. It covers everything that's produced on the farm and can include up to $2 million of livestock revenue.

For those who have three to six major crops and livestock, five years of tax records and basic production records, WRFP may be worth considering, Ifft said. The tax records are used to set the guarantee.

2) Livestock Risk Protection is based on livestock futures prices and protects against drops in futures market prices. This product can be used to cover feeder cattle and cattle on feed in feedyards. Recent changes in this type of insurance may make it more attractive to producers than it has in the past, in that cost sharing from the federal government is now higher. Previously cost sharing was 25%-35% of premium cost but that's now been expanded to 35%-55% of premium cost. Additionally, the number of head possible to cover has been increased from 6,000 previously to 12,000 currently per year. Producers can enroll in this coverage any time during the year.

3) Forage Production Risk is a product that has been catching on in Kansas and other states, Ifft said, particularly the Pasture, Rangeland and Forage choice. Almost 2 million acres of pasture are enrolled in this type of coverage in the state this year. That sounds like a lot, she added, unless you consider that more than 5 million acres each in corn and wheat are enrolled in crop insurance programs.

"It's grown a lot but it's still relatively new and relatively small," Ifft said of this type of risk management. "This program effectively protects against drought risk. It's based on rainfall in a producer's area. In this case, there just needs to be less rainfall during a coverage period in a producer's area than there has been historically."

In addition to the programs administered by the Risk Management Agency, Ifft said the USDA's Farm Service Agency also has programs that can help producers, particularly with weather or disaster events.

"In determining your options, it helps to know breakeven costs. We ag economists always recommend knowing your costs for a number of reasons and one of those reasons is so you can manage your price risk," she said.



Farm Business Management Courses Offered for Women in Ag

With nearly 200 Annie’s Project and Annie’s Inspired courses taught across the state since 2004, Iowa State University Extension and Outreach continues to help women in agriculture to be successful though small-group education, local networks and trusted resources.

During the pandemic, fewer courses with more options are being offered for winter 2021. Five programs will offer a variety of in-person and online formats and expertise.

“Now more than ever, women are looking for meaningful ways to improve their farm or rural businesses in 2021,” said Madeline Schultz, women in ag program manager and farm management team member at Iowa State University Extension and Outreach.

Courses offered for winter 2021 include the following....

Annie’s Project Farm Business Management
Course participants will learn effective strategies to make good decisions in five key management areas including financial, human resources, legal, marketing, and production topics.

    Jan. 7 to Feb. 11, virtual only. Contact ISU Extension and Outreach Cerro Gordo County at 641-423-0844, or Mitchell County at 641-732-5574.  
    Jan. 14 to Feb. 18, in-person or virtual. This program is offered at the Warren Cultural Center Auditorium in Greenfield with a virtual attendance option. Contact ISU Extension and Outreach Adair County at 641-743-8412.
    Feb. 8 to March 15, in-person only. This program is offered at the Webster County Fairgrounds in Fort Dodge. Contact ISU Extension and Outreach Webster County at 515-576-2119.

Women Managing Horses
Course participants will learn about Iowa’s equine industry from a business perspective, including financial documentation, marketing the equine business, horse health care, equine insurance, evaluation of feed rations and land use decisions.  

    Feb. 18 to March 11. This program is offered at the Grace United Methodist Church in Spencer. Contact ISU Extension and Outreach Clay County at 712-262-2264.

Women Planning Ag Businesses
Course participants will learn a step-by- step approach for developing business plans for local food businesses, family farm growth or transition and rural businesses such as arts or transportation.

    Jan. 16 to April 3, in-person or virtual. This program is offered at the Iowa Cattlemen’s Association in Ames. Contact ISU Extension and Outreach Story County at 515-382-6551.

Register by going online to www.aep.iastate.edu/womeninag or by calling the local extension offices listed above. The cost for each course is $75. Registration scholarships may be requested by contacting Madeline Schultz at schultz@iastate.edu.

The statewide sponsors of farm management courses for women are USDA/NIFA under Award Number 2018-70027-28586 and Farm Credit Services of America.



Trusts Can Serve as Important Estate Planning Tool for Farm Families

Depending on your family situation and the value of your estate, forming a trust can be an important addition to your farm transition plan.

A will gives basic assurance of where farm and personal assets will go at death, but a trust can provide more detail and instruction, with the flexibility to transition your farm the way you want it to go.

In an article written for the December Ag Decision Maker, two experts with Iowa State University Extension and Outreach give an overview of what a trust is, the different kinds of trusts, who they benefit and what a person should consider before forming a trust.

“The trust is a very useful and flexible tool for estate planning, yet it is probably the most underused estate management technique,” according to Kelvin Leibold and Melissa O’Rourke, farm management specialists with Iowa State University Extension and Outreach.

A trust is an artificial entity, comparable to a corporation, created by a document or instrument that guides the handling of the trust assets.

One of the biggest factors in determining whether a trust is necessary is the family situation, according to O’Rourke. More complicated situations, involving multiple generations and rights of ownership and management, may make a trust an ideal choice.

The article, called “Trusts as an Estate Planning Tool,” guides the reader through the basics of how to create a trust, how one is funded, the costs to maintain a trust and the different parties that must be involved to form and carry out a trust.

O’Rourke and Leibold discuss common mistakes people make with trusts, like forgetting to change how assets are titled, so that they go into the trust, and making sure the parties understand the different types of tax liabilities based on the type of trust that is chosen.

The two main types of trusts are living and testamentary trusts. A living trust is established by a living person, while a testamentary trust is established in a will and comes into being at the time of death or under certain circumstances.

Living trusts are usually revocable or irrevocable, and each carries different stipulations on what the grantor can and cannot control, and different types of tax liability.

“A trust is basically creating another entity or a bucket where you put the assets, and then writing the rule book of what should happen with those assets,” said Leibold.

Done correctly, he said a trust can help keep a family member in farming, while allowing the other family members to receive ownership in the farm, land, money or whatever assets the grantor chooses.

Because farm operations have so many moving parts – and expenses – a trust can help make the transition as seamless as possible, while accomplishing the goals of the grantor.

Leibold and O’Rourke both recommend being transparent with family members and informing each person where they stand in regard to the estate. Sharing documents and holding family meetings can help keep everyone on the same page.

“As far as I’m concerned, everyone should have a copy of these documents – be it a will, power of attorney or a trust,” said O’Rourke. “Give a copy to everyone in the family, so that everyone knows what is going on.”

O’ Rourke can be reached at morourke@iastate.edu, and Leibold can be reached at kleibold@iastate.edu.



Register Now for the Next NCBA Webinar
What to Expect from the 117th Congress & the Biden Administration
January 14th, 2021 @ 6:00 p.m. Central

This session will explore the incoming Biden Administration, the 117th Congress, and how it all relates to cattle producers. The National Cattlemen's Beef Association’s Washington, DC team will cover everything from expected Cabinet Secretaries, potential legislation, use of the Congressional Review and more!

Click to Get Registered Today... https://www.ncba.org/cattlemenswebinarseries.aspx.  



NPPC Applauds USDA Oversight of Gene-Edited Livestock

In an advanced notice of proposed rulemaking, the Trump administration today announced its intention for the U.S. Department of Agriculture (USDA) to have primary oversight over gene-edited livestock, a decision applauded by the National Pork Producers Council (NPPC). Gene editing is a promising new technology that can help farmers breed healthier, more resilient animals. NPPC was the leading advocate for USDA regulatory oversight over the last two years when the U.S. Food and Drug Administration (FDA) was claiming jurisdiction.

Gene editing is used to make specific changes within an animal’s own genome. Gene editing will allow U.S. farmers to produce animals that are more disease-resistant, require fewer antibiotics and have a reduced environmental footprint. Many changes made through gene editing could be achieved through conventional breeding. However, the cost and timeframe for approval of these type of edits is prohibitive under the FDA. Notwithstanding its significant promise, U.S. agriculture had been in a holding pattern, as USDA and the FDA were locked in a regulatory tug of war over authority on gene editing in livestock. Meanwhile, China, Brazil, Canada and other global competitors moved ahead in the race to pursue this technology.

“Today’s announcement is a big step forward for America’s farmers, who have weathered significant challenges over the past few years,” said NPPC President Howard “AV” Roth, a pork producer from Wauzeka, Wisconsin. “FDA regulation of gene editing will result in an impractical, lengthy and expensive approval process. Thankfully, that is not the administration’s intended plan. This announcement represents a critical milestone to ensuring American agriculture maintains its global competitive edge.”

The USDA’s Animal and Plant Health Inspection Service (APHIS) already has a review process in place for gene editing in plants, which can serve as a model for livestock. Today’s proposal is the first step in this process, and NPPC looks forward to USDA and FDA promptly signing a formal agreement on the regulation of this promising new technology in livestock.

Whenever new technologies are introduced, consumer acceptance is critical. The U.S. pork industry is committed to transparency when using this technology in the future; there are currently no gene-edited pigs entering the food supply. The focus now is on establishing a regulatory framework that will not stifle innovation and drive use of this breakthrough technology overseas. NPPC will always support the rights of consumers and hog farmers to have choice.

USDA’s rulemaking has a 60-day comment period. NPPC will be providing formal comments and will remain engaged to ensure USDA has primary oversight of gene editing in livestock.



Secretary Perdue Announces Groundbreaking Proposal to Transfer Agricultural Animal Biotechnology Regulatory Framework to USDA

Today, U.S. Secretary of Agriculture Sonny Perdue announced a significant step in modernizing regulations of agricultural animals modified or produced by genetic engineering. The U.S. Department of Agriculture (USDA) will be moving forward with an Advanced Notice of Proposed Rulemaking (ANPR) to solicit public input and feedback on a contemplated regulatory framework that would modernize our system into a scientifically-sound, risk-based, and predictable process that facilitates the development and use of these technologies for U.S. farmers and ranchers under USDA’s authorities. This initiative follows President Donald Trump’s Executive Order on agricultural biotechnology that called upon federal agencies to make regulatory improvements to rectify some of the long-standing barriers to innovation for U.S. agriculture.

“Our livestock producers need all the tools in the toolbox to help protect against animal diseases and continue to meet the challenge of feeding everyone now and into the future. If we do not put these safe biotechnology advances to work here at home, our competitors in other nations will,” said Secretary Perdue. “Science-based advances in biotechnology have great promise to continue to enhance rural prosperity and improve the quality of life across America’s heartland and around the globe. With this effort, we are outlining a pragmatic, science-based, and risk-based approach that focuses on potential risk to animal and livestock health, the environment, and food safety in order to provide our farmers and ranchers the tools they need to continue to feed, clothe and fuel the world.”

Background
Last year, President Trump directed federal agencies to modernize the regulatory framework for agricultural biotechnology products by establishing regulatory approaches proportionate to the product’s risks, avoid unjustified distinctions across similar products, and promote future innovation and competitiveness. USDA will publish an ANPR on animal biotechnology as a keystone effort in fulfilling this Executive Order.

This ANPR will transition portions of FDA’s pre-existing animal biotechnology regulatory oversight to USDA. USDA will consult with FDA to ensure our reviews benefit from FDA’s expertise, while providing developers with a one-stop-shop for their products at USDA. USDA looks forward to FDA experts participating in the development of our review process.

Through this ANPR, USDA is proposing to establish a flexible, forward-looking, risk-proportionate and science-based regulatory framework that provides a predictable pathway to commercialization and keeps pace with advances in science and technology for certain farm animals (cattle, sheep, goats, swine, horses, mules, or other equines, catfish, and poultry) developed using genetic engineering intended for agricultural purposes.

USDA’s proposed safety review would cover molecular characterization, animal health (including noninfectious, infectious, and zoonotic diseases), efficacy (for disease and pest resistance traits), environmental considerations, food safety evaluation of any expressed substance (including allergenicity and compositional analyses of key components), and food storage and processing. USDA’s proposal would provide end-to-end regulatory oversight from pre-market reviews through post-market food safety monitoring of animals. USDA will continue to coordinate closely with the FDA to fulfill oversight responsibilities and provide the appropriate regulatory environment, ensuring the safety of products derived from new technologies, while fostering innovation at the same time.

Under the regulatory framework being contemplated, USDA would provide regulatory oversight from pre-market reviews through post-market food safety monitoring for certain farm animals developed using genetic engineering. USDA would promulgate regulations using the authorities granted to the Department through the Animal Health Protection Act (AHPA), the Federal Meat Inspection Act (FMIA), and the Poultry Products Inspection Act (PPIA). Pursuant to these authorities, the Animal and Plant Health Inspection Service (APHIS) would conduct a safety assessment of organisms developed using genetic engineering that may increase an animal’s susceptibility to pests or diseases of livestock, including zoonotic diseases, or ability to transmit the same. The Food Safety and Inspection Service (FSIS) would conduct a pre-slaughter food safety assessment to ensure that the slaughter and processing of animals developed using genetic engineering would not result in a product that is unsound, unhealthful, unwholesome, or otherwise unfit for human food.



NCBA Secures Critical Wins For Cattle Producers In Government Funding And COVID Relief Deal And Urges Swift Passage In Both Chambers

The National Cattlemen’s Beef Association (NCBA) secured critical wins for cattle producers today through the latest government funding and COVID-19 relief packages. The deal includes additional Coronavirus Food Assistance Program (CFAP) support for cattle producers, expanded resources for state-inspected meat processors through inclusion of the Requiring Assistance to Meat Processors for Upgrading Plants (RAMP UP) Act, certainty that cattle producers can recoup payment losses by establishing a dealer trust, funding for agriculture quarantine inspection services and an extension of Livestock Mandatory Reporting (LMR). NCBA Vice President of Government Affairs Ethan Lane issued the following statement:

“We are grateful to leaders on both sides of the aisle and both sides of Capitol Hill for working diligently to deliver this year-end package that provides vital relief to U.S. cattle producers. This package addresses many of NCBA’s year-long policy priorities as well as our work to respond to the multiple market shocks producers have experienced over the past year.”
 
“Local meat processors across the country continue to be severely backlogged due to COVID-19. NCBA has advocated relentlessly for passage of the RAMP UP Act, which allocates federal grant dollars to these small businesses – the modified version of this bill included in the House package allows local processors to take advantage of interstate retail channels and provide greater market access, ensuring beef always remains in stock.”
 
“With the inclusion of funding for additional cattle assistance through CFAP, agricultural quarantine inspection services and the extension of LMR through Sept. 30, 2021, a tremendous amount of continuity and certainty is given back to ranchers and farmers across the country. Now that the hard work of brokering this deal is complete, NCBA urges both houses of Congress to swiftly pass this legislation and send it to President Trump’s desk to be signed into law.”



NMPF Thanks Congress for Dairy Provisions in COVID Assistance Package

The National Milk Producers Federation (NMPF) thanked Congress today for the positive steps it is taking through COVID relief legislation to assist dairy farmers who have faced unprecedented market volatility while working every day to nourish struggling families.

“With difficult months of the pandemic still ahead, it was crucial for lawmakers to come to a bipartisan agreement that helps farmers do what they do best: feed families. To do this, they need financial stability and ways to connect to families in need. We thank Congress for its leadership, and we look forward to working with USDA in implementing this legislation. Importantly, this package includes nearly $1 billion in targeted support to help dairy producers continue to feed families throughout these difficult times,” said Jim Mulhern, NMPF president and CEO.

Highlights of the pandemic legislative package for dairy producers include:
    Dairy Donation Program – the measure provides $400 million for a new NMPF-backed Dairy Donation Program to help dairy stakeholders and non-profits work together to provide dairy products to food-insecure households and minimize food waste. This program is carefully balanced and is open to all dairy products. NMPF is grateful to Senator Debbie Stabenow (D-MI) and Rep. Collin Peterson (D-MN) for their leadership in securing this and other dairy provisions in the package.

    Payment Limits Flexibility – the bill includes dedicated funding to allow USDA to provide additional compensation to producers who were unable to receive the full support they needed under the Coronavirus Food Assistance Program on account of payment limitations. NMPF thanks Rep. Mike Conaway (R-TX) for advocating for this provision, as well as the many members who have sought flexibility on this front all year long including Sens. Jerry Moran (R-KS) and Dianne Feinstein (D-CA) and Rep. Jim Costa (D-CA).

    Supplemental DMC Payments – the measure establishes Supplemental Dairy Margin Coverage payments for farms that have increased their DMC production history since 2014. These payments will be based on the difference between the farm’s 2019 actual production and its DMC production history. While the provision is targeted to smaller operations, it will enhance the farm bill baseline for all dairy farmers as it runs concurrently with DMC up to 2023.

    Paycheck Protection Improvements – the bill includes the bipartisan NMPF-backed Paycheck Protection for Producers Act which would make the Paycheck Protection Program work better for sole proprietor, independent contractor, and self-employed dairy farmers by allowing them to use their 2019 gross farm income to determine their PPP loan amounts. NMPF commends Sens. John Thune (R-SD) and Tammy Baldwin (D-WI) and Reps. Ron Kind (D-WI), Glenn ‘GT’ Thompson (R-PA), Anthony Brindisi (D-NY), and John Joyce (R-PA) for their work on this measure.

Dairy producers will also be eligible for support in the $11 billion agricultural disaster assistance package Congress has included in the legislation, with additional details expected in coming days. Of note, at least $1.5 billion of this package is dedicated to additional product purchases.

NMPF has served its members as the leading advocate for U.S. dairy farmers throughout the coronavirus pandemic. It has also been an industry leader in providing useful informational resources for the dairy sector.



Growth Energy Applauds Canada’s Clean Fuel Standard

On Friday, Canada published its nationwide Clean Fuel Standard draft regulation, an initiative to reduce the lifecycle carbon intensity of fuels and energy used in Canada and achieve more than 20 million tons of annual reductions in greenhouse gas emissions by 2030. The Canadian Clean Fuel Standard regulatory scenario has modeled compliance to include an average 15 percent ethanol in gasoline by 2030.  

Growth Energy CEO Emily Skor issued the following statement on how Canada’s Clean Fuel Standard continues to push the benefits of biofuels in North America: “Canada continues to be a trailblazer in addressing climate change and cutting greenhouse gases through biofuels. The Clean Fuel Standard drives progress towards better air quality and sustainable choices that support rural communities by setting the achievable goals of reducing more than 20 million tons of greenhouse gas emissions annually which in turn will incentivize viable and cost effective solutions such as 15 percent ethanol in all gasoline by 2030. I look forward to continue working with our northern neighbors as we position biofuels at the forefront of climate change.”

Earlier this month, Growth Energy and Advanced Biofuels Canada co-hosted two webinars with retail partner, Casey’s, for Canadian federal, provincial, and fuel and automotive association officials to present the benefits and potential of E15 as Canada looks to higher blends as part of its fuel regulations. The Growth Energy team discussed the competitiveness of a 15 percent ethanol blend (Unleaded 88 (E15)) and aspects of equipment compatibility, retail setup, and other consumer and technical benefits.  

Canada is currently the United States’ number one foreign customer for U.S. producers and a strong partner in promoting biofuels as a means to reduce greenhouse gases. In the past, Growth Energy has submitted public comments to Environment and Climate Change Canada supporting their goal of reducing carbon intensity and offering recommendations on how biofuels can help them achieve their climate goals. This nationwide announcement follows the province of Ontario’s recently announced plan to move to 15% renewable content in gasoline by 2030.