Friday January 22 Cattle on Feed Report + Ag News

 NEBRASKA CATTLE ON FEED UP 4%

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.55 million cattle on feed on January 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 4% from last year. Placements during December totaled 480,000 head, up 3% from 2019. Fed cattle marketings for the month of December totaled 450,000 head, down 4% from last year. Other disappearance during December totaled 10,000 head, down 5,000 from last year.


IOWA CATTLE ON FEED DOWN 9%

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 610,000 head on January 1, 2021, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was unchanged from December 1, 2020, but down 9% from January 1, 2020.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during December 2020 totaled 93,000 head, up 13% from November 2020 and up 29% from December 2019.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during December 2020 totaled 91,000 head, up 1% from November 2020 and December 2019. Other disappearance from feedlots with a capacity of 1,000 or more head in Iowa totaled 2,000 head.



United States Cattle on Feed Up Slightly
    
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 12.0 million head on January 1, 2021. The inventory was slightly above January 1, 2020. The inventory included 7.40 million steers and steer calves, up slightly from the previous year. This group accounted for 62 percent of the total inventory. Heifers and heifer calves accounted for 4.57 million head, down slightly from 2020.

On Feed - By State  (1,000 hd - % Jan 1 '20)
Colorado .......:               1,110          102                 
Iowa .............:                 610              91             
Kansas ..........:               2,500          103              
Nebraska ......:               2,550          104             
Texas ............:               2,870           97              

Placements in feedlots during December totaled 1.84 million head, 1 percent above 2019. Placements were the second highest for January since the series began in 1996. Net placements were 1.78 million head. During December, placements of cattle and calves weighing less than 600 pounds were 460,000 head, 600-699 pounds were 435,000 head, 700-799 pounds were 425,000 head, 800-899 pounds were 317,000 head, 900-999 pounds were 110,000 head, and 1,000 pounds and greater were 95,000 head.

Placements by State (1,000 hd - % Dec '19)
Colorado .......:                155             111               
Iowa .............:                 93               129             
Kansas ..........:                440             101             
Nebraska ......:                480             103             
Texas ............:                380              93              

Marketings of fed cattle during December totaled 1.85 million head, 1 percent above 2019. Marketings were the second highest for January since the series began in 1996. Other disappearance totaled 60,000 head during December, 10 percent below 2019.

Marketings by State (1,000 hd - % Dec '19)
Colorado .......:                170           117             
Iowa .............:                  91            101               
Kansas ..........:                 425            99                 
Nebraska ......:                 450            96              
Texas ............:                 395           108              



Nebraska Corn Board welcomes Jobman as president of NeCGA

On Jan. 21, 2021, Andy Jobman, a farmer from Gothenburg, was elected as president of the Nebraska Corn Growers Association (NeCGA) following the organization’s annual meeting. The Nebraska Corn Board (NCB) congratulates Jobman on his new role, and Nebraska’s corn checkoff looks forward to working with Jobman and NeCGA for the betterment of the agricultural industry.

“Andy has been great to work with since he joined NeCGA in 2010,” said David Bruntz, chairman of NCB and farmer from Friend. “Throughout my time working with Andy, I’ve appreciated his level of engagement in various local, state and national meetings. He is always prepared and ready to tackle tough issues impacting our nation’s corn industry. He’s a great active listener and takes time to hear all viewpoints. He’ll definitely be an asset to the association throughout his term.”

Jobman will serve as president for two years before a new leader is elected, and he will then transition to chairman of the board.

NCB also thanks Dan Nerud, farmer from Dorchester, who completed his term as president of NeCGA, a position he’s held since Dec. 2018. He now serves as chairman of the board.

“It’s always exciting to welcome in new leadership, but it’s also bittersweet because we see great leaders conclude their service,” said Kelly Brunkhorst, executive director of NCB. “Working with Dan has been a pleasure over these last two years and the Nebraska Corn Board greatly appreciates his commitment to the industry. Fortunately, while he may be finishing his time as president, I know Dan will continue to be very involved in the corn industry at the local and national levels, and I know we’ll be seeking his expertise from time to time.”

Brunkhorst, who also serves as the executive director of NeCGA, encourages interested farmers to get involved with Nebraska’s corn industry by serving the checkoff or the association.



DROUGHT CLAUSES IN PASTURE LEASES
– Ben Beckman, NE Extension

If you rent or lease pasture, you know drought can cause big issues. With all of Nebraska currently experiencing drought conditions, is your lease prepared to deal with the possibility of dry conditions this summer?

Pasture leases can range from simple to complex, having a plan for adverse weather helps protect the landowner and tenant.  Without one, the landowner risks having the pasture over grazed, resulting in decreased future production and opening the door for weed issues.  The tenant runs the risk of poor cattle performance and depending on how the lease is negotiated, being taken off pasture early without a place for animals to go.

How and who decides when pasture utilization is complete and animals need to be removed is not easy, and I can’t give you a magic solution.  What I do know, is talking about it now and deciding on a framework that both parties can agree upon can save time and headache later on if conditions deteriorate.

Be sure to discuss how pasture condition and utilization will be assessed, any adjustments to grazing period length or stocking rate that low production will activate, adjustments to the rent payment, and how any insurance, disaster, or government payments will be handled.

These discussions may not be easy, but they are worth the effort.  Splitting drought risk between both landowner and tenant as much as possible is often best.  Make sure to write it down so there is no miscommunication later on.

Drought can play havoc with pasture leases, but by planning ahead and being prepared, you can be ready and avoid headaches later on.



Webinar to focus on adding value to livestock through certification programs

Nebraska Extension’s upcoming Farm and Ranch Management webinar will focus on strategies for livestock producers to add value through approved certification programs.

 Consumers are desiring more information about how their food is produced. Participation in an approved certification program is one way for producers to capture additional value at the time of sale. The webinar will review the historical financial performance of commonly used livestock programs and talk about current and future programs that producers can potentially participate in to continue to add value back to their operations.

Presenters will include Elliott Dennis, assistant professor of livestock marketing at the University of Nebraska-Lincoln; Tom Brink, CEO of the Red Angus Association of America; and Andrew Dorn, Global Product Marketing Manager at Allflex Livestock Intelligence.

The Extension Farm and Ranch Management team is based in the University of Nebraska-Lincoln’s Department of Agricultural Economics. Webinars in the series are hosted every Thursday at noon and aim to assist producers and other agricultural professionals in their decision-making.

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



PRIME Class V Applications Due Next Friday

The Nebraska Corn Growers Association's PRIME Program is designed for younger or newer producers who want to increase their knowledge and improve themselves and their operations in every aspect. All sessions are focused on maximizing the long-term viability of the operation through the latest research, emerging technologies, farm management practices, and peer relationship. The experience provides relevant, current and bottom-line information that is the best the industry has to offer.

The PRIME Program consists of three 2-day sessions plus attendance at the annual meeting of the Nebraska Corn Growers Association (NeCGA). You can expect a time commitment of 6 to 8 days away from the farm over a 12-month period. Session locations are determined once class participants have been selected. A maximum of 12 corn farmers are selected to participate each year.

Applications should be sent to the Director of Grower Services, Morgan Wrich, at mwrich@necga.org by next Friday, January 29.



Central Life Sciences Partners with Nebraska Cattlemen Foundation to Provide Scholarships to Nebraska Youth

Central Life Sciences is proud to partner with the Nebraska Cattlemen Foundation in support of Nebraska’s future agriculture leaders through the creation of a new Central Life Sciences Scholarship. This scholarship(s) will be dedicated to a Nebraska student(s) pursuing a degree in an agriculture related field of study and will be awarded in June during the Nebraska Cattlemen Midyear Meeting.

“We at Central Life Sciences are excited to support our future leaders with their educational efforts and are thrilled to be working with the Nebraska Cattlemen Foundation to make it happen” said Paul Kropp, National Account Manager for Central Life Sciences.”

“The Nebraska Cattlemen Foundation believes in the importance of a sound education for the next generation of industry leaders and appreciates the generosity of Central Life Sciences in provided funding to the Foundation in order to provide scholarships to Nebraska youth” said Nebraska Cattlemen Foundation president Mark Jagels.

Central Life Sciences, makers of Altosid® IGR feed-through fly control, is launching a program to reward scholarship dollars based on purchases of Altosid® IGR included beef products within the state of Nebraska. As a producer, you can support local students with your purchase of feed or mineral that contains the feed-through horn fly control of Altosid® IGR. For every ton purchased between January 1st and May 31st, 2021, Central Life Sciences will donate $10/ton to a scholarship fund established by the Nebraska Cattlemen Foundation.

Visit AltosidIGR.com/rebate to submit proof of qualifying purchases by May 31, 2021.



 Upcoming Communicating with Farmers Under Stress webinar workshop to build farmer stress awareness

Stress seems to be prevalent in the agriculture sector, with even more concerns arising due to the COVID-19 pandemic.  

Nebraska Extension, in partnership with Michigan State University Extension, presents a free online webinar, “Communicating with Farmers Under Stress” on Thursday, Jan. 28 from 10 – 11:30 a.m. CDT.  This workshop is designed for individuals who work with farmers and ranchers on a regular basis, such as bank lenders, ag suppliers, educators and consultants, healthcare professionals, and anyone involved with the lives of farmers and ranchers.

Many farmers and ranchers are facing financial problems and marketing uncertainties, along with regular challenges such as production risks, farm transfer issues and more. When temporary stress turns into chronic stress, it can impact physical health and mental wellness.

Individuals may personally know farmers and ranchers who struggle with stress, anxiety, depression, burnout, indecision or suicidal thoughts. This workshop will help individuals recognize and respond when it is suspected that a farmer, rancher, or rural family member may need help.  

The workshop aims to:  
    Build awareness around potentially stressful conditions affecting some farmers and ranchers.
    Learn stress triggers, identify signs of stress, and review helpful techniques for responding.
    Learn techniques for identifying, approaching, and working with farmers who may not cope with stress effectively.
    Learn where to find additional help.

Those interested in the free online workshop can register at: go.unl.edu/farmstress21.  

    For more information, contact Nebraska Extension Educators Glennis McClure, gmcclure3@unl.edu or Jean Ann Fischer, jfischer@unl.edu.



Nebraska Corn to host virtual February Forum Series

Farmers, ranchers and agricultural industry representatives across the state are invited to the first February Forum Series, offered virtually by the Nebraska Corn Board (NCB) and the Nebraska Corn Growers Association (NeCGA). These hour-long Zoom webinars will take place each Thursday throughout the month and will begin at noon central time. Each session will offer unique content relevant to the state’s corn industry.

“We’re in the midst of a season that would typically be jam-packed with a variety of winter meetings for farmers and ranchers,” said David Bruntz, chairman of NCB and farmer from Friend. “We’re excited about these February Forum webinars because they’re a good way for people to easily learn about relevant topics important to them from the comfort of their own homes.”

In each webinar event, guest speakers from national associations and agricultural trade organizations will provide updates on several topics, including international trade (Feb. 4), biofuels (Feb. 11) agricultural policy (Feb. 18) and carbon markets (Feb. 25). Presenting organizations include U.S. Grains Council, U.S. Meat Export Federation, National Corn Growers Association and Renewable Fuels Association.

“I’ve been hearing a lot of questions relating to how the new Biden Administration will impact agriculture,” said Andy Jobman, president of NeCGA and farmer from Gothenburg. “Nebraska Corn’s webinar series will be an ideal time to listen to experts in a variety of sectors lay out what they know so far and identify how agriculture can work together to achieve common goals. If you wanted to log in and listen, please do, but we also encourage active participation, and there will be time for questions at the end of each session.”

The virtual series is free of charge to attend, but people must register in advance to obtain the Zoom login information. To register, visit NebraskaCorn.org and click on the “February Forum Series” banner at the top of the page.



NDA’S SPECIALTY CROP GRANT PROPOSALS DUE JAN. 31

The Nebraska Department of Agriculture (NDA) is seeking proposals for projects designed to strengthen the specialty crops industry in Nebraska (i.e. fruits, vegetables, nuts, honey). NDA administers the Specialty Crop Block Grant Program (SCBGP), which is funded through the U.S. Department of Agriculture. The deadline for submitting proposals is Jan. 31, 2021.

“Nebraska’s Specialty Crop Block Grant Program supports the research, development and marketing of specialty crops in the state,” said NDA Director Steve Wellman. “Through the years, we’ve seen many unique and creative projects that have helped producers and consumers alike. One common theme found in all the projects is that specialty crops add value and variety to Nebraska agriculture.”
For the 2021 SCBG program, NDA anticipates approximately $700,000 will be available to fund new projects. Producers, organizations and associations, as well as state and local agencies, educational groups and other specialty crops stakeholders are eligible to apply.

Last fall, several organizations in Nebraska received more than $800,000 in USDA grants. This year’s proposals will be reviewed and scored using select criteria. Applicants who make it through the first round will be asked to submit additional information. NDA and USDA will announce the projects receiving funding in the fall.

Instructions for submitting a proposal, proposal applications, performance measures and program guidelines are available on NDA’s website at nda.nebraska.gov/promotion/scbgp/index.html. All proposals should be saved as a Microsoft Word .docx file and sent electronically to casey.foster@nebraska.gov by the Jan. 31 deadline.

For additional information, contact SCBG Program Manager Casey Foster at 402-471-4876, or by the email listed above. To view a comprehensive list of eligible specialty crops and examples of projects funded, visit USDA’s website at ams.usda.gov/services/grants/scbgp.



Agronomy and Horticulture Seminar Series starts Jan. 29

The spring Agronomy and Horticulture Seminar Series begins Jan. 29 with “Management of Herbicide-resistant Palmer Amaranth in Minor and Specialty Crops Within the High Plains,” presented by University of Nebraska-Lincoln’s Nevin Lawrence.  

Lawrence, assistant professor and Weed Management Specialist will present on herbicide-resistant Palmer amaranth’s recent arrival to the Panhandle of Nebraska and surrounding regions and how many of the crops grown within the region have limited herbicide options. Lawrence will review the previous five years of research and extension efforts he has undertaken to better understand Palmer amaranth, and to provide stakeholders with options to manage a difficult but increasingly common weed species.

This seminar will be streamed and recorded. The series will continue every Friday. Dates and topics are listed below.

    Feb. 5: “Oil Palm Production and Conservation of Natural Resources: Can We Get It All?,” Patricio Grassini, associate professor and cropping system specialist, Department of Agronomy and Horticulture, University of Nebraska–Lincoln.

    Feb. 12: “Soil Health – How Management is Affecting the Pulse of Soil,” Alan Franzluebbers, USDA-ARS, Raleigh, North Carolina.

    Feb. 19: “Coexisting with Fire in Rangelands,” Victoria M. Donovan, postdoctoral research associate, Department of Agronomy and Horticulture, University of Nebraska–Lincoln.

    Feb. 19: “People, Fire and Global Biome Divergence in the 21st Century,” Rheinhardt Scholtz, affiliate in the Department of Agronomy and Horticulture, University of Nebraska–Lincoln.
    
    Feb. 26: “Aerial Application in the United States: Best Practices and Future Directions,” Bradley Fritz, Agricultural Engineer and Research Leader, Aerial Application Technology Research Unit, USDA-ARS, College Station, Texas.    

    Note: This presentation video will not be posted to the website.
    
    March 5: “Teaching Landscape Systems,” Dan Uden, assistant professor, School of Natural Resources, Department of Agronomy and Horticulture, Center for Resilience in Agricultural Working Landscapes, University of Nebraska–Lincoln.

    March 12: “The Summing Up: One Person’s Life with Small Grains,” P. Stephen Baenziger, professor, Department of Agronomy and Horticulture, University of Nebraska–Lincoln, Nebraska Wheat Growers Presidential Chair.

    March 19: “The Physiological Basis for Greater Growth and Improved Persistence of Alfalfa Fertilized with Phosphorus (P) and Potassium (K),” Jeffrey J. Volenec, professor, Department of Agronomy, Purdue University, West Lafayette, Indiana.

    March 26: “How Can Transferable Biology and Breeding Contribute to Improving Food Systems and Climate Change?,”Edward Buckler, professor, USDA-ARS, Cornell University, Ithaca, New York.

    April 2: “From Plant Proteins and Metabolites to Protein Networks and Metabolic Pathways,” Sophie Alvarez, research associate professor, Department of Agronomy and Horticulture, Director of the Proteomics and Metabolomics Facility, Nebraska Center for Biotechnology, University of Nebraska–Lincoln.

    April 9: Ruth Wagner, Head of Data Science & Analytics at Bayer Crop Science, St. Louis, Missouri.

Note: This presentation video will not be posted to the website.

    April 16: “Management of Herbicide-Resistant Weeds: Challenges and Opportunities,” Rodrigo Werle, assistant professor and extension cropping systems weed scientist, Department of Agronomy, University of Wisconsin-Madison.

    April 23: “Increasing Pasture Productivity and Quality to Support Grazing Livestock,” John A. Guretzky, associate professor and grassland systems ecologist, Department of Agronomy and Horticulture, University of Nebraska–Lincoln.

    April 30: “Expanding the Breeding Toolbox to Develop Soybean Cultivars,” Asheesh Singh, professor, Department of Agronomy, Bayer Chair in Soybean Breeding, Associate Chair for Discovery and Engagement, Director of Graduate Education (Plant Breeding), R.F. Baker Center for Plant Breeding, Plant Sciences Institute, Iowa State University, Ames.



 Ag Industry Leader And Grains Council Trade Policy Director Floyd Gaibler Passes Away

Floyd Gaibler, the U.S. Grains Council’s (USGC’s) longtime director of trade policy and biotechnology, passed away Jan. 21 following complications during surgery.

“Floyd was a good man who loved his work at the Council and in the agriculture community,” said USGC President and CEO Ryan LeGrand. “We are deeply saddened by his loss and grateful for the many contributions he made to our industry over a lifetime of work.”

In his role with the Council, Gaibler worked with government officials and the White House to address trade policy issues related to the export of U.S. feed grains and their co-products.

Gaibler’s service to the agricultural sector was long and devoted, spanning more than 30 years in both the executive and legislative branches of the U.S. federal government and numerous positions in the private sector.

He served as deputy undersecretary for farm and foreign agricultural services at the U.S. Department of Agriculture. In that capacity, he provided leadership and guidance to programs administered by the Farm Service Agency, the Commodity Credit Corporation, the Risk Management Agency and major international and food trade issues affecting the Foreign Agricultural Service.

He also worked for House Committee of Agriculture; the Agriculture Retailers Association; the International Dairy Foods Association; the National Cheese Institute/American Butter Institute; and others.

Gaibler was born and raised on the family farm in Farnam, Nebraska, and held a master’s degree and a bachelor’s degree in agricultural economics from the University of Nebraska.

He is survived by his wife and two children as well as relatives in Nebraska and many devoted friends and colleagues.



Iowa Farm and Rural Life Poll Shows Farmers' Beliefs on Climate Change Are Shifting

Climate change is impacting Iowa agriculture and negative impacts are expected to increasingly threaten agricultural productivity in the state. There are many ways, however, that farmers and landowners can increase the resiliency of production systems, reduce greenhouse gas emissions, and even capture carbon.

The 2020 Iowa Farm and Rural Life Poll survey explored farmers’ perspectives on climate change and ways that farmers can address its impacts on agriculture. The project is supported by Iowa State University Extension and Outreach and the Iowa Agriculture and Home Economics Experiment Station.

“We’ve asked questions about climate change three times over the last decade, so we can now look at changes in perspectives over time,” said project director J. Arbuckle, professor and extension sociologist at Iowa State University.

According to the poll, also known as the Farm Poll, farmers’ climate change beliefs shifted substantially between 2011 and 2020. In 2020, 81% of farmers indicated that climate change is occurring, up from 68% in 2011. That number is higher than for the general public in Iowa, which recent research shows is 67%.

Half of farmers indicated that they believe that extreme weather will become more frequent in the future. Over half reported that they are concerned about the potential impacts of climate change on their farm operations; an increase from 35% in 2011. Nearly 60% agreed that they should take steps to protect the land they farm from increased precipitation.

“Farmers have experienced a lot of extreme weather since 2011, from droughts to extreme wet, and it’s likely that’s driving some of the changes in perspectives,” said Arbuckle. “Of course, farmers are closer to the weather than most folks, and that extreme weather can really make it difficult to plant, raise and harvest high-quality crops.”

Many soil and water conservation practices can help to make farm operations more resilient in the face of climate change, and the Farm Poll survey asked farmers whether they had made management changes in response to weather variability and its impacts. Most farmers reported multiple adaptation actions. The most prevalent was scouting for pests and disease, with 52% of farmers reporting a moderate or major increase in that activity. Increased use of many recommended conservation practices was common, with 43% reporting increases in use of no-till and 22% reporting an increase in use of cover crops. On the down side, 32% reported increased use of pesticides.

“Soil and water conservation practices, especially those that reduce erosion or increase organic matter and water infiltration and holding capacity, make farms more resilient,” Arbuckle said. “They protect the soil from extreme rains, and help crops cope better with dry spells.”

It is increasingly recognized that agriculture can play an important role in combating climate change. Through practices such as no-till and cover crops, carbon can be captured and stored it in the soil, reducing atmospheric concentrations of carbon dioxide while simultaneously building soil health and resilience.

“A lot of work is going into development of programs and markets to help farmers make ‘carbon farming’ a part of their farm enterprises, so we put a question about that in the survey,” said Arbuckle. “Thirty-seven percent of farmers agreed that such initiatives should be pursued, compared to 17% who disagreed.”

The results showed that nearly half were uncertain, which Arbuckle said makes sense given that such programs are hypothetical at this point.

“To me these results signal an openness to strategies that help make individual farms more sustainable while also addressing the climate crisis,” Arbuckle said. “Iowa’s dominant cropping systems face a lot of sustainability challenges. Income from carbon capture could be a great step in several right directions.”

The most recent poll was published in December 2020 and is available online at the ISU Extension Store.

The Iowa Farm and Rural Life Poll survey has been conducted since 1982, and is the longest-running survey of its kind in the nation. Questionnaires were mailed in February and March 2020, and 1,059 farmers responded to the statewide survey.



Pork Industry Forum Will be a Virtual Event

After much consideration and guidance from health officials, the Board of Directors for the National Pork Board has decided the Pork Act portion of the 2021 Pork Industry Forum, scheduled for March 3-5, 2021, will be virtual.

All pork producers and media are invited to attend the Pork Act Delegate Session. A detailed agenda and registration details will be available soon.

The 2022 Pork Industry Forum will be held in Louisville, Kentucky.



Prepare Livestock for Cold Weather

The colder temperatures of the winter season are on the way and livestock producers should make sure their animals are well cared for.

Access to clean water, ample feed and a well-maintained shelter, windbreak or facility are common requirements for all livestock during cold weather.

Chris Rademacher, extension swine veterinarian and associate director of the Iowa Pork Industry Center at Iowa State University, said the biggest thing with swine is to make sure they are warm, dry and draft-free.

This time of year is a good time to check for cracks or crevices in the doors, walls or curtains. Pigs will naturally huddle together to stay warm, but drafts can affect this behavior.

“One of the biggest objectives in modern swine housing during the winter months is to ensure that the building’s ventilation system is working properly,” said Rademacher. “In the winter season, the goal is to keep the building warm, while using the minimum amount of ventilation to exhaust the gases and excess moisture.”

Grant Dewell, extension beef veterinarian at Iowa State, said cattle are usually cold tolerant but extreme temperatures are still dangerous.

Windbreaks, extra bedding and feed are a critical strategy to ensure the cows are still maintaining a healthy body temperature. It also is beneficial to feed at a certain time of day.

Feeding cows in the late afternoon will help them get through cold overnight temperatures as rumen heat production peaks about six hours after being fed. During periods of continual cold weather cows will need approximately an extra pound of corn for every 10 degrees Fahrenheit of cold stress below 20 F.

This is also a good time to check that waterers are working correctly.

Cooler winters are sometimes favored by livestock producers, compared to volatile freeze-thaw cycles, but subzero temperatures can make for extra work, and stress on animals. Younger and thin livestock are often most susceptible, and the cold stress can cause increased issues with production, and overall animal health.

When in doubt, work with your nutritionist or veterinarian to ensure the welfare of your livestock and your operation. Additional information for cattle producers is also available in the January edition of the "Growing Beef Newsletter."



Farm, Biofuels, and Environmental Group Oppose SAFE Rule

An alliance of farm, biofuels, and environmental organizations last night filed an amicus brief in objection to the Safer Affordable Fuel Efficiency Vehicle (SAFE) Rule on the grounds that it both fails to account for toxic pollution from aromatic-laden fuel as well as ignores the important role that ethanol can play in improving fuel efficiency and reducing greenhouse gas emissions.

Finalized last April by the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA), the SAFE Rule reversed an Obama-era rule that called for a 5 percent improvement in vehicle efficiency. In its place, it established a much more meager 1.5 percent increase in efficiency each year for light-duty vehicles. In the notice of proposed rulemaking, EPA requested information on octane levels and how they could be increased in accordance with the Clean Air Act, but ultimately failed to address these concerns in the final rule.

The brief, which is being led by National Farmers Union (NFU), also includes support from the Clean Fuels Development Coalition, the Governors’ Biofuels Coalition, Montana Farmers Union, North Dakota Farmers Union, Siouxland Ethanol LLC, South Dakota Farmers Union, Urban Air Initiative, and Glacial Lakes Energy.

“As written, the SAFE Rule puts the interests of oil corporations ahead of those of the renewable fuel industry, the environment, or the public at large,” said NFU President Rob Larew. “Not only will it increase the overall emissions from the U.S. transportation industry, but it will also delay and disincentivize the development and adoption of renewable fuels and cleaner, more efficient vehicles – all of which will erode air quality, contribute to climate change, worsen health outcomes, and increase fuel costs for consumers.”

In June, NFU joined a coalition of ethanol, agriculture, and public interest groups to dispute the rulemaking, filing a petition for review in the Superior Court of the District of Columbia. However, in light of President Joe Biden’s recent executive order directing federal agencies to review the SAFE Rule, NFU voluntarily dismissed itself from the case. Instead, the group will redirect its resources to other pro-ethanol initiatives the incoming administration may be inclined to support. Although it is no longer a petitioner, NFU still stands in support of the remaining petitioners and shares their concerns, as is detailed in the brief.



Weekly Ethanol Production for 1/15/2021

According to EIA data analyzed by the Renewable Fuels Association for the week ending January 15, ethanol production increased 0.4%, or 4,000 barrels per day (b/d), to 945,000 b/d—equivalent to 39.69 million gallons daily and a four-week high. Production remained 9.9% below the same week last year. The four-week average ethanol production rate decreased 0.8% to 938,000 b/d, equivalent to an annualized rate of 14.38 billion gallons (bg).

Ethanol stocks declined 0.3% to 23.6 million barrels, which was 1.7% below a year-ago. Inventories drew down across all regions except the Midwest (PADD 2) and West Coast (PADD 5).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, jumped 7.7% higher to 8.11 million b/d (124.36 bg annualized). Gasoline demand was 6.3% less than a year ago.

Refiner/blender net inputs of ethanol climbed 4.0% to 778,000 b/d, equivalent to 11.93 bg annualized. This was 10.0% 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. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of November 2020.)



Dozens of Ethanol Plants Remain Idle in Early 2021

The Renewable Fuels Association (RFA) recently estimated that about two dozen of the 200 ethanol plants in the U.S. are idled and another two dozen have reduced their production rates.

Additionally, Scott Richman, chief economist for the RFA, noted, "The corn market started moving higher a month ago and has spiked over the past couple of days." With the higher prices of corn and the worsening impact of the pandemic on fuel consumption, ethanol plant margins turned negative in early December, he said, and had recently started to return to break-even levels when the most recent corn price spike hit. "This latest move in the corn rally will likely have a negative impact on margins," he stated.

Higher corn prices from the most recent rally and their expected negative impact on ethanol industry margins in the New Year are coming on the heels of the ethanol industry's deep downturn in 2020, Richman said. The RFA estimates that the ethanol industry had $4 billion in foregone revenues from March through November because of the coronavirus.

"The ethanol industry is quite resilient, but financial losses were substantial," he noted.

Richman said that it's a little early to know how ethanol plants are going to react to the recent spike in corn prices. Some plants try to price their corn in advance, he stated, but eventually the higher corn prices are going to work their way through the ethanol processing system and raise feedstock prices. The winter months are also a time when margins for ethanol plants are a little bit weaker because of lower fuel consumption.



Tyson Foods to Settle Price-Fixing Suit

Tyson Foods Inc. said it has agreed to pay $221.5 million to settle with plaintiff groups of poultry buyers that sued it for price-fixing claims, helping resolve a four-year legal battle over alleged collusion in the $65 billion chicken industry.

Restaurant chains, supermarket operators and food distributors have accused Tyson, the largest U.S. meat company by sales and the nation's top chicken supplier, and other major chicken companies of coordinating production and pricing to boost prices for staples such as chicken breasts, tenders and wings. Chicken suppliers have pushed back in court, pointing to economic factors they said drove poultry prices.

According to the Wall Street Journal, Tyson said it reached the settlement with plaintiffs including direct purchasers, commercial and institutional indirect purchasers and end-user consumers. It didn't admit any liability as part of the settlements and said the settlement is subject to court approval.

The settlement doesn't cover lawsuits filed separately by individual plaintiffs. Tyson, Pilgrim's Pride Corp. and other U.S. chicken suppliers still face continuing lawsuits from some of their top customers, including chicken-sandwich company Chick-fil-A Inc., supermarket operators Walmart Inc. and Kroger Co. , and food-service distributors Sysco Corp. and US Foods Holding Co.