Wednesday December 30 Ag News

 Scoular appoints Chief Information Officer

Scoular announced on Wednesday that David Tomlinson has been appointed to the position of Senior Vice President and Chief Information Officer, effective January 19, 2021. As a member of the company’s Senior Leadership Team, Tomlinson will lead Scoular’s IT function and the company’s efforts to leverage technology to create solutions for its customers and drive company growth.

“Technology is revolutionizing the agricultural industry, driving both efficiency and innovation,” said Scoular CEO Paul Maass. “With 20 years of IT experience, David understands the importance of partnering with business functions to maintain existing technology as well as explore and integrate new solutions. We are thrilled he is joining Scoular.”

Tomlinson joins Scoular after more than 15 years at Conagra Brands in various positions, including his most recent role as Vice President of Information Technology, leading the Business Relationship Management IT organization. He also has held management positions in IT at Conagra Brands supporting sales and marketing, supply chain planning, trade and web development. After graduating from the University of Texas at Dallas, David spent the first several years of his career in the tech start-up sector and worked for Hewlett Packard.



Weekly Ethanol Production for 12/25/2020

According to EIA data analyzed by the Renewable Fuels Association for the week ending December 25, ethanol production decreased 4.3%, or 41,000 barrels per day (b/d), to 934,000 b/d—equivalent to 39.23 million gallons daily. Production remained 12.4% below the same week last year. The four-week average ethanol production rate declined 1.0% to 964,000 b/d, equivalent to an annualized rate of 14.78 billion gallons (bg).

Ethanol stocks grew 1.4% to a 32-week high of 23.5 million barrels, which was 11.7% above a year-ago. Inventories built across all regions except the Rocky Mountains (PADD 4) and West Coast (PADD 5).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, increased 1.3% to 8.13 million b/d (124.60 bg annualized). Gasoline demand was 9.3% less than a year ago.

Refiner/blender net inputs of ethanol rose 2.0% to 818,000 b/d, equivalent to 12.54 bg annualized. This was 7.5% below the year-earlier level as a result of the continuing effects of the COVID-19 pandemic.

There were zero imports of ethanol recorded for the week. However, imports have been logged fifteen of the past 23 weeks. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of October 2020.)



USDA Extends Flexibilities Amid Continuing COVID-19 Pandemic

USDA’s Risk Management Agency (RMA) is extending crop insurance flexibilities for producers amid the COVID-19 pandemic. Specifically, relief provided for electronic notifications and signatures is extended through July 15, 2021; organic certification, replant self-certification and assignment of indemnity are extended through June 30, 2021.

“We recognize that American agriculture continues to face challenges due to the pandemic,” RMA Administrator Martin Barbre said. “RMA remains committed to providing flexibility that supports the health and safety of all parties while also ensuring that the federal crop insurance program continues to serve as a vital risk management tool.”

RMA is also allowing Approved Insurance Providers (AIPs) further flexibilities for production reporting, submitting written agreement requests and obtaining producer signatures for written agreement offers. Producer signatures for written agreement offers, issued by RMA on or before June 30, 2021, with an expiration date on or before July 30, 2021, will allow producer signatures to be accepted after the expiration date with proper self-certification or documentation. However, all documentation and signatures for these offers must be completed no later than August 2, 2021. AIPs also have 30 business days to submit written agreement requests and applicable documentation for requests with submission deadlines prior to July 1, 2021.



Prices for Most Fertilizers Continue Higher

Average retail fertilizer prices continue to be mostly higher the fourth week of December 2020, according to sellers surveyed by DTN. Seven of the eight major fertilizers are higher from the previous month.

Prices for three fertilizers increased a significant amount, which DTN designates as 5% or more. Anhydrous was 9% more expensive compared to the prior month with an average price of $461 per ton.

Both MAP and potash were 8% higher in price looking back to last month. MAP had an average price of $535/ton while potash $365/ton.

Four fertilizers were just slightly higher in price compared to prior month. DAP had an average price of $474/ton, urea $363/ton, 10-34-0 $463/ton and UAN32 $250/ton.

The remaining fertilizer, UAN28, was unchanged in price from last month. The nitrogen fertilizer had an average price of $210/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.28/lb.N, UAN28 $0.37/lb.N and UAN32 $0.39/lb.N.

Retail fertilizer prices continue to be mostly lower in price from a year ago, but there are a couple exceptions. DAP is 7% higher while MAP is 18% more expensive compared to last year.

10-34-0 is 1% less expensive, potash is 3% lower, urea is 4% less expensive, anhydrous is 6% lower, UAN32 is 9% less expensive and UAN28 is 13% lower from last year at this time.



Dicamba Settlement Claims period Begins

Attorneys for farmers announced the execution of a $400 million settlement agreement designed to compensate farmers for yield losses resulting from dicamba damage. The claims period begins on December 29, 2020.

The settlement with Monsanto provides compensation for damage and yield losses occurring from the introduction of the Xtend crop system. The $400 million settlement offers farmers an opportunity to receive the financial compensation they deserve for damage they have experienced, which is particularly helpful to farmers in these difficult times. Anyone with specific types of evidence of dicamba damage in any of year from 2015 through 2020 is eligible to participate in the settlement.

"We are pleased that relief will soon be available to the thousands of farmers across America who have suffered yield losses due to off-target movement of dicamba," said attorney Don Downing, chair of the court-appointed Plaintiffs' Executive Committee in the multi-district litigation.

Under the settlement, affected farmers may receive up to 100% of their yield losses caused by off-target dicamba. That means impacted farmers can potentially recover 100 cents on the dollar of the losses that they can establish with standard farming records.

Farmers are able to complete the claim process on their own; can hire an attorney of their choice; or can retain one of the Plaintiffs' Executive Committee firms to assist with putting together the claim form and supporting documentation.

The settlement resolves the claims brought by a large group of farmers from several states whose dicamba injury lawsuits had been consolidated into a multi-district litigation pending in the U.S. District Court for the Eastern District of Missouri and claims for the 2015-2020 crop years.



Argentina's Grain Port Strike Comes to an End

Argentina's port and grain union workers have ended a 20-day strike after an agreement was reached Dec. 29 following government intervention, lifting a major work stoppage that left more than 150 grain ships stranded at the country's ports.

The agreement was reached with oilseed and port worker unions at a meeting hosted by Argentina's Ministry of Labor, ending a strike that has paralyzed port terminals and the country's agriculture industry, Cámara de la Industria Aceitera de la República Argentina, or CIARA, said in a Dec. 29 statement.

Argentina is one of the world's top soybean, corn and wheat suppliers, and the strike hampered grain trade flow out of the country, weighing on markets for the last few weeks and contributing, in part, to a global grain price rally.

Workers were demanding a wage raise, holding back cargo ships at a crucial time when the export season ramps up in Argentina. The country's wheat marketing season begins in December.

"Each delayed ship has a [demurrage] cost of between $25,000 and $40,000 per day," said Javier Mariscotti, an Argentina-based trader and director of the Rosario Stock Exchange.

More than 2.5 million mt of agriculture products were waiting to be shipped, he added.

Another Argentina-based analyst estimated the overall vessel demurrage cost at around $1.9 billion. All the volume committed and not shipped in December will aim to be covered by January shipments, with some of those January volumes possibly being moved to February, the analyst said.

The volume of wheat waiting in the shipping lineups was around 1.4 million mt, he added.

In December 2019 Argentina exported 2.1 million mt of wheat,, more than 2 million mt of soybean products and around 1.9 mt of corn products, according to Argentinian government export data.



U.S.-UK Organic Equivalency Keeps Trade Opportunities Open

The USDA and U.S. Trade Representative (USTR) negotiate organic trade arrangements to help organic farms and businesses access new markets for their products. Effective Friday, January 1, 2021, organic trade between the United States (U.S.) and United Kingdom (UK), which includes Great Britain (England, Scotland, Wales) and Northern Ireland, will take place under a new equivalence arrangement that allows organic products certified to either the USDA or UK organic standards to be labelled and sold as organic in both countries, as long as the products meet the terms of the arrangement.

The biggest change to current import/export practices under the new arrangement is that USDA organic products exported to England, Scotland and Wales must be accompanied by a new paper Great Britain import certificate developed by the UK. Shipments to Northern Ireland will continue to use the European Union's TRACES certificate system. Learn more about requirements under the arrangement on the USDA and UK websites.



Part 2 of 4: Delving Into Ranch Group’s First Ever Cattle Producers’ Long-Range Plan

Launched December 16, the cattle industry’s first-ever “Cattle Industry Long Range Plan,” completed by the 13-member board of directors of R-CALF USA, incorporates key principles to lead the U.S. cattle industry into the future and guide public policy decisions that impact the industry.

In this second part of the group’s four-part series, R-CALF USA focuses on the third and fourth strategies of the long-range plan for independent cattle producers:
-    Preserve and Protect the Liberties and Freedoms of U.S. Independent Cattle Producers
-    Reform the Cattle Industry’s Legal and Regulatory Framework So U.S. Cattle Producers Can Protect the Marketplace On Their Own

“These two strategies comprise the heart and soul of the plan as they speak directly to the core values held by America’s independent cattle producers,” said R-CALF USA CEO Bill Bullard.

Speaking to the first strategy Bullard added, “The freedom to conduct their individual cattle operations the way they choose, without interference from the heavy hands of government and monopolistic corporations is a core value embraced by our thousands of cattle-producer members.”

He said the group’s ongoing legal battle to stop the U.S. Department of Agriculture (USDA) from mandating that every cattle producer uses radio frequency identification (RFID) eartags and registers their premises with the government exemplifies adherence to a value system that prioritizes freedom and liberty.

Speaking to the second strategy, Bullard said United States cattle producers have been ill-served by a legal and regulatory system in which had to rely on others within the industry to preserve and protect marketplace competition.

“America’s cattle producers cannot be independent if they continue to depend on government bureaucrats to preserve and protect the very market from which their independence is derived.”

Bullard explained that cattle producers waited years before the government showed any inclination to address what every producer knew was a broken marketplace. He said it was not until the Tyson fire in Kansas and the additional market disruptions caused by the COVID-19 pandemic that the government took any meaningful notice of the dysfunctional cattle market.

“Independent producers must play a much larger role in protecting competition in the marketplace and the long-range plan will help them make that happen,” he concluded.   

Several of R-CALF USA’s Board of Directors will participate in a Facebook Live Meeting at 7:00 p.m. MST today to delve into these two important strategies contained in the first-ever long-range plan for cattle producers. The public is invited to participate.