Thursday January 14 Ag News

 McHargue Elected to American Farm Bureau Federation Board of Directors, AFBF Delegates Adopt Nebraska Policies

Nebraska Farm Bureau President Mark McHargue has been elected to serve on the American Farm Bureau Federation (AFBF) Board of Directors. McHargue was elected to the position by delegates from Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, and Wisconsin during the Jan.13 Midwest Region Caucus of the virtual AFBF Annual Convention.

“I’m honored to have the opportunity to serve with other state Farm Bureau Presidents from across the country in helping provide leadership and direction for a wonderful organization that is committed to serving as a voice and advocate for America’s farm and ranch families,” said McHargue. “Midwestern agriculture is critical to our nation and the world in producing food, fuel, and other basic needs for society. I’m excited to bring a Nebraska and Midwest perspective to the table of one of the most well respected and influential organizations in the country.”

In addition to the appointment of McHargue to the AFBF Board, delegates to the AFBF Convention also adopted a handful of policy positions recommended by Nebraska farmers and ranchers during the Nebraska Farm Bureau annual meeting last December.

“The strength of our organization is in our grassroots policy process ensuring that members direct our policy positions. We’re pleased that many of the policies recommended by Nebraska farmers and ranchers will now become policy of the American Farm Bureau,” said McHargue.

Nebraska proposals related to reform in cattle markets were among those adopted by AFBF delegates, including specific policy to expand cash sales to increase price transparency. Other Nebraska policies adopted included support for very small, small, and medium sized meat processing facilities to expand marketing opportunities for Nebraska livestock producers. AFBF delegates also adopted Nebraska initiated proposals to provide USDA more tools to enforce the Packers and Stockyards Act.

Other policies adopted by delegates to the Convention included measures to increase oversight of regulatory structures for crop protection products to prevent situations like those occurring this past summer when legal action sought to take dicamba products away from producers during the prime application window. Delegates also supported policy to allow self-employed individuals to participate in group health insurance policies to help lower health insurance costs, while also reaffirming support for expanding markets for agricultural products by supporting trade agreements between the United States and the European Union and the United Kingdom.

Nebraska Farm Bureau state board members serving as delegates to the AFBF Virtual Convention included Mark McHargue of Central City (NEFB President), Sherry Vinton of Whitman (NEFB 1st Vice President), Hilary Maricle of Albion (Ag Promotion, At-Large), Lance Atwater of Ayr (Youth-At Large), David Grimes of Minden (South Central Region), and Dustin Ladenburger of Stratton (Southwest Region).



Farm Bureau Establishes 2021 Policies

Farmer and rancher delegates to the American Farm Bureau Federation’s 102nd Annual Convention today adopted policies to guide the organization’s work in 2021. Key topics ranged from farm diversity to farm labor and dairy policy to livestock marketing. For the first time in AFBF history, delegates met and voted virtually due to COVID-19.

“Our Farm Bureau delegates showed that no challenge, not even a pandemic, will keep them from working to improve the lives of America’s farmers and ranchers,” said AFBF President Zippy Duvall. “Their work not only sets policy for 2021, it will also serve as a guide for AFBF as we prepare to work with a new president and a new Congress to ensure we continue to lead the world in producing healthy and safe food, fiber and fuel.”

Recognizing the importance of broadening access to agriculture, delegates voted to encourage increased racial diversity in farming. This new policy calls for increased funding for USDA programs that make inheriting farms easier and increases funding to promote diverse farmland ownership.

Delegates updated labor policy, emphasizing the importance of reforming the H-2A program by expanding the program to provide visa workers for both seasonal and year-round employment. An expanded program would address workforce shortages and extend the program to operations that do not currently qualify to employ guest workers, like dairy farms.

The Holcomb plant fire and the COVID-19 pandemic caused meat prices to skyrocket while the price paid to farmers dropped. AFBF delegates voted to provide stability in markets by supporting efforts to increase negotiated sales in fed cattle markets. Delegates also called for increased transparency in livestock pricing.

Milk price volatility was exacerbated by the COVID-19 pandemic, resulting in financial damages to dairy farmers in excess of $2.5 billion. Delegates updated dairy policy to call for re-examining the 2018 farm bill’s modification to the milk price formula, improving equity in USDA’s Federal Milk Marketing Order revenue sharing pools, and reaffirmed their support for allowing dairy farmers the opportunity to cast an individual and confidential ballot during milk order referendums.

There are new policies on crop insurance. Delegates called on the Risk Management Agency to improve hurricane protection coverage, including but not limited to, providing protection against both hurricane-force winds and excessive precipitation. Delegates also supported modifying specialty crop insurance to minimize food waste.



Nebraska Grain Sorghum Board and Nebraska Sorghum Producers Association Executive Director Appointed to Agriculture Trade Advisory Committee

The United States Department of Agriculture (USDA) has announced the appointment of Nate Blum to the ‘Grains, Feed, Oilseeds and Planting Seeds Ag Trade Advisory Committee’ (ATAC). Blum serves as the Executive Director of the Nebraska Grain Sorghum Board and the Nebraska Sorghum Producers Association.

The ATAC serves in an advisory role to the Administration and the US Trade Representative as it relates to issues of importance in negotiating competitive advantages for agricultural products from the United States. This is Blum’s first appointment. He will serve a four-year term which begins on January 15, 2021 and expires in 2025.

“I am truly humbled and honored to serve on the Grains, Feed, Oilseeds and Planting Seeds ATAC,” Blum stated. “It is a privilege to represent Nebraska Agriculture generally, and Nebraska Producers specifically, as we work to expand trade with new and existing partners around the world.”

To learn more about Nebraska Sorghum, please visit: www.nebraskasorghum.org or send an email to: sorghum.board@nebraska.gov.  



 2021 Eastern Lambing and Kidding School on January 30 near Seward

The 2021 Eastern Nebraska Lambing and Kidding School on Saturday January 30, 2021 near Seward will feature farm tours, hands-on demonstrations, and presentations by expert speakers.

The school, sponsored by the Nebraska Sheep & Goat Producers and Nebraska Extension, will run from 9:00a.m. – 5:00 p.m. CT, starting with Registration at Burch Livestock, LLC, 2935 Little Salt Rd. Seward.  Following the sheep tour of Burch Livestock, we will travel to the Seward County Fairgrounds, 400 N 14th St Seward for lunch and presentations.  Following the speakers, we will travel to Lucky M Farms, 2500 Branched Oak Rd, Davey where we will tour their goat farm.

To register, e-mail ne.sheep.goat@gmail.com or call Melissa Nicholson of the Nebraska Sheep and Goat Producers at 308-386-8378 by January 25.  The cost to attend in person is $25 for non-members, $20 for members, $10 students and to attend virtually $15 non-members and $10 members.  Handouts and lunch are included.

Lunch at the Seward County Fairgrounds will serve American lamb.  After lunch, Randy Saner will speak on getting facilities ready for lambing and kidding.  John Magnuson will discuss economical feeding of sheep and goats.  Rachell Gibbs will discuss health concerns during kidding and lambing.  We will close out the day traveling to Lucky M Farms where we will tour the facilities and discuss body condition score of does, care of the young goat and when and how to assist difficult births.

The eastern clinic is one of two sponsored this year by the Nebraska Sheep & Goat Producers.  The other will be held near Bayard on February 6.



Third annual Nebraska Regional Foods Systems Initiative Food Systems Summit to be virtual  

The third annual Nebraska Regional Food Systems Summit will take place via Zoom Feb. 8-11. The annual summit, hosted by Nebraska Extension, is intended for anyone interested in access to local food and building resilience in the Nebraska food system.  

All Nebraskans, no matter what their role, need to know what is going on and coordinate with others from across the food systems, said Vanessa Wielenga, assistant extension educator for food access. Nebraska Extension’s Regional Foods Initiative works to connect people and organizations working in the Nebraska food system, and the annual summit is a key part of building those connections.  

In the past, the summit has attracted farmers, ranchers, food processors, grocery distributors, health professionals, educators and more. Wielenga hopes those who attend gain a more holistic understanding of growing and sourcing local foods in Nebraska.  

The Nebraska Regional Food Systems Initiative Summit will be held via Zoom. Participants have the option to sign up for each session individually. Participation is free. The schedule is as follows:  

Feb. 8
    1 – 3 p.m.: Food System Equity  

Feb. 10  
    9 – 11 a.m.: Feeding the Future with Farm to School  
    1 – 3 p.m.: Food Access

Feb. 11
    9 – 11 a.m.: Climate Resilient Agricultural Practices
    1 – 3 p.m.: Sustainability  

Sessions will host featured speakers which will be announced at a later date. Those interested in seeking updates should sign up here.  

“The Food System is a big place and some of the best people in the program focus on one thing,” said Vanessa Wielenga, assistant Extension educator in food access. “We hope that everyone can find one session they are passionate about and interested in.”  

To learn more about the upcoming summit, visit foodsystems.unl.edu/2021-summit.  



NPPC Submits Comments on Proposed USDA Rule for Gene-Edited Livestock
 
For more than two years, the U.S. Food and Drug Administration (FDA) has dragged its feet on the development of gene-edited livestock, an emerging technology with tremendous promise for livestock agriculture, causing American agriculture to fall behind in the global race to advance its development. Thankfully, under a recently proposed rule, the U.S. Department of Agriculture (USDA) will have primary regulatory jurisdiction, which “will foster innovation, allow for producer access to this technology, and preserve the preeminence of American agriculture globally,” the National Pork Producers Council (NPPC) wrote in comments submitted Wednesday to the agency.

Gene editing is used to make specific changes within an animal’s own genome. Gene editing will allow us to produce animals that are more disease-resistant, require fewer antibiotics and with a smaller environmental footprint. 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.

“…[M]any of our competitor nations have or are moving towards common sense, risk-based regulatory models that capture all agricultural applications and that offer clear pathways to commercialization….Even the European Union, long viewed as a bastion against agricultural  innovation, is having meaningful discussion about accessing the benefits of gene editing.  This is already placing U.S. livestock and poultry producers at a disadvantage,” NPPC wrote. “This disadvantage will be more acute if these countries approve the significant gene edits that we know are on the horizon long before the U.S. is able to do so.  We simply cannot allow U.S. farmers and ranchers to lack the same animal health and food safety advantages as producers in other countries,” NPPC added.

In public comments earlier this week, the current FDA commissioner said he would refuse to sign the memorandum of understanding between the FDA and USDA addressing gene-edited livestock.

“The USDA has put forward an open and transparent process to establish regulatory certainty surrounding a promising technology,” said NPPC President Howard “A.V.” Roth, a hog farmer from Wauzeka, Wisconsin.  “We are disappointed that the FDA continues to engage in delay tactics that are holding back U.S. agriculture. U.S. pork producers are dedicated to rigorous, science-based policies to ensure food safety for all consumers.”

“FDA regulation will result in an impractical, lengthy and expensive approval process,” added Roth. “U.S. agriculture can’t continue to be sidelined while our competitors move ahead with this critical technology. USDA needs to be in the driver’s seat on gene-edited livestock and we look forward to working with the Biden administration on its implementation.”

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.

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.



NCBA Calls For Continued Vigilance In Response To Another Namibian FMD Outbreak

The National Cattlemen’s Beef Association's (NCBA) Senior Director of International Trade and Market Access, Kent Bacus issued the following statement in response to reports of another reported occurrence of foot-and-mouth disease (FMD) in Namibia:
 
“The unfortunate and continued presence of FMD outbreaks in Namibia is a serious concern for U.S. cattle producers. While the latest outbreak occurred in the buffer zone and north of the cordon fence, this is the second occurrence of FMD in a matter of months. As we stated in October 2020, FMD is a grave and persistent threat to the U.S cattle industry and warrants every available caution and protection to ensure that the problems plaguing cattle production in other parts of the world do not reach our shores. While NCBA supports regionalization as a tool to protect against the spread of disease while facilitating science-based trade, NCBA encourages USDA to remain vigilant in ensuring all preventative measures are in place to protect the U.S. cattle industry from exposure.”
 
"In regard to FMD, Namibia is divided into two zones. The northern zone, where FMD continues to occur and is not approved for export to the United States, and the southern zone—an area that is free of FMD and is designated as safe for export. Namibia has extensive measures in place, including a cordon fence and a buffer zone to prevent the spread of FMD from the northern zone to the southern zone. NCBA supports research to develop protocols and determine the economic impact of regionalization of states or an area to establish risk avoidance for animal diseases. With that said, FMD is a highly contagious disease that would devastate the U.S. cattle industry and NCBA will continue to support USDA’s efforts to prevent our herd from exposure."



U.S. CattleTrace Releases Membership Model

U.S. CattleTrace, the industry-driven initiative for animal disease traceability, announced the release of their model for membership in the organization. As a not-for-profit who securely maintains and manages data collected as part of disease traceability, U.S. CattleTrace members will provide direction to the producer-led Board of Directors regarding the direction of the organization. In addition to their input, U.S. CattleTrace members will receive benefits such as access to educational materials, networking opportunities with other industry segments and up-to-date news regarding traceability.

“We are excited to welcome members to U.S. CattleTrace and grow our network of disease traceability advocates,” Callahan Grund, Executive Director of U.S. CattleTrace, said. “Without buy-in from all segments of the cattle industry, disease traceability will not be achievable. That is why we look forward to membership from each our segments, including individual producers, industry stakeholders and more.”

U.S. CattleTrace offers membership in each of the following segments:
    Cow/Calf Producer Member - Designed for individuals who are actively engaged in the ownership or management of cattle used to produce beef as well as individuals with a vested interest in the cattle industry, specifically advancing disease traceability within it.
    Auction Market Member - Designed for individuals who are actively involved in the management of a livestock auction market.
    Feedyard Member – Designed for businesses who are actively involved in cattle management and feeding.
    Allied Industry Member - Designed for animal industry associates to join U.S. CattleTrace and our cattle industry members in building a nationally significant animal disease traceability system.

To learn more about how to become a member or to fill out a membership application, visit www.uscattletrace.org/membership.



SHIC 2020 Progress Report Details Efforts to Protect US Swine Herd Health

The Swine Health Information Center (SHIC) shared its 2020 Progress Report with the National Pork Board (NPB), providing details on results from activities to fulfill its mission. Among those are collaboration on domestic and international pork industry goals, supporting targeted research projects, along with monitoring swine diseases and issues around the world. “In the very short time we’ve been in existence, we have come to play such a vital role in helping defend the health of our industry,” remarked SHIC Board of Directors Chair Daryl Olsen, DVM, AMVC. “I recommend people read the progress report and evaluate our performance. After you’ve read it, you’re going to understand that we have filled a void and been very successful. We’re committed to protecting the US pig population.”

SHIC Plan of Work projects in 2020 included efforts on the swine viral disease matrix, monitoring and mitigating risks to US swine herd health, improving on-farm biosecurity, African swine fever (ASF) prevention and preparedness, and continual disease analysis sharing with pork producers and stakeholders. SHIC also facilitated investigation of newly identified agents associated with disease, such as porcine sapovirus and others, while supporting a rapid industry response to emerging disease outbreaks.

“PED (porcine epidemic diarrhea virus) was the stimulus for SHIC’s development and we’ve done a lot to look at all diseases – foreign animal disease or anything else,” Dr. Olsen explained. “We’re trying to protect and be prepared whatever the introduction is. So many of the things we have done are not disease specific but are looking at creating more protection, more safeguards, and better understanding for all disease introductions.”

SHIC’s 2020 progress includes processes to strengthen national biosecurity and protect the US from foreign transboundary diseases like ASF. For example, NPB and SHIC, with the collaboration of the National Pork Producers Council (NPPC) and American Association of Swine Veterinarians (AASV), have funded a project to identify gaps in US pork industry national biosecurity. The goal is to prevent entry of foreign animal disease into the country by addressing those gaps. Among the many areas being considered for study are foreign imports, entry of foreign travelers, domestic transportation of animals, common inputs to US production, domestic market channels, and others.

The threat of ASF drives several projects for SHIC including coordination of international ASF research, collecting data on the use of oral fluids for ASF surveillance and monitoring, and oral fluids PCR sensitivity when testing for ASF.

-more-On-going ASF research projects in Vietnam, enabled by a SHIC administered USDA Foreign Agricultural Service grant (received with the assistance of NPPC in the application phase), include strengthening veterinary services capacity for mitigating ASF impact in Vietnam, as well as implementation of field projects to learn preparedness lessons in a country experiencing an ASF outbreak.

“We are so laser focused on swine disease introductions and re-introductions into the country,” Dr. Olsen observed. “When you’re laser focused on one thing, it gives you so much more ability to make decisions. That’s been beneficial. No other organization I know of can be this focused on one task. That’s exciting.” As SHIC has focused on disease introductions, it has resulted in benefits beyond excluding foreign animal disease (FAD), a positive development, in his opinion.

Enhancing industry and farm biosecurity is essential to limiting and managing emerging diseases. SHIC improved information about feed holding time and temperature as an ASF mitigation strategy, convened an expert panel to author guidelines on the use of ultraviolet light as a disinfection technique, and studied the effectiveness of a different pig movement and loading method to prevent pathogens coming on to a farm during marketing. Analysis of swine health data has resulted in a model to predict PED outbreaks onto farms, prioritizing biosecurity procedures to prevent porcine reproductive and respiratory syndrome (PRRS), and informing producers about PRRS strains causing disease.

Both a webinar series focusing on “industry chatter” related to swine disease issues, co-sponsored by AASV and conducted by Iowa State University Swine Medicine Education Center, and a podcast, SHIC Talk, were introduced in 2020. These new communications tools complement SHIC’s website, monthly enewsletter, participation in events – done virtually in 2020 and 2021 so far, and personal outreach. These avenues for information sharing provide wide access to ever-growing information designed with the goal of enhancing US swine herd health.

As the world deals with the COVID-19 pandemic, SHIC continues to focus efforts on prevention, preparedness, and response to novel and emerging swine disease for the benefit of US swine health. As a conduit of information and research, SHIC encourages sharing of its publications and research. Forward, reprint, and quote SHIC material freely. SHIC is funded by America’s pork producers to fulfill its mission to protect and enhance the health of the US swine herd. For more information, visit http://www.swinehealth.org.  



RFA Thanks Senate Midwest Republicans for Backing Renewable Fuel Standard

The Renewable Fuels Association expressed gratitude today to seven Republican members of the Senate who called on the U.S. Environmental Protection Agency to back down from rumored small refinery exemptions from the Renewable Fuel Standard.

“Lawmakers on both sides of the aisle have clearly and forcefully spoken out against last-minute efforts to inflict rural America with more exemptions from Big Oil’s renewable volume obligations,” said RFA President and CEO Geoff Cooper. “We appreciate our Senate champions and look forward to working with them to reverse the course of the refinery waiver program that has been so harmful to farmers, ethanol producers and heartland communities.”

“Ethanol and biodiesel plants that are already struggling to cope with the economic fallout of the COVID-19 pandemic are at risk of closing their doors, cutting off key markets for farmers,” the senators wrote. “Many biofuel plants have already been forced to shutter their doors over the past four years. Eliminating more demand for biofuels at this time may be the death knell for many more.”

The letter was signed by Sens. Roger Marshall (R-KS), Chuck Grassley (R-IA), Joni Ernst (R-IA), Mike Rounds (R-SD), Deb Fischer (R-NE), Roy Blunt (R-MO) and Josh Hawley (R-MO). The week also saw letters from their Democratic colleagues in the Senate and from the House Biofuels Caucus.



CoBank Quarterly: Probable Boost in Fiscal Spending Lifts Outlook

The coronavirus still dominates the economy and continues to impact rural industries, but with vaccines rolling out, the virus will slowly loosen its grip in 2021. Shifts in the political landscape bring new legislative possibilities, including an increased probability of more COVID-19 financial aid and other fiscal spending, which are pushing up expectations for 2021 GDP growth.

According to the new Quarterly report from CoBank’s Knowledge Exchange, it will likely be summer before the economy really begins to gain steam, but the second half of the year should power the economy to annual growth of roughly 4.5%–5.5%.

“While the economic outlook has improved, significant risks still remain,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange division. “Key among those risks are the potential for more geopolitical crises, business solvency, a slower than expected receding of the pandemic and persistence in high rates of long-term unemployment.”

The steady climb in corn, soybean, and wheat prices during the fourth quarter of 2020 afforded growers and grain cooperatives the opportunity to capture significant margins. Since August, corn and soybean prices have risen more than 60% while wheat prices have gained more than 30%. The rally is a result of smaller-than-expected U.S. production; strong domestic demand for food, feed, and fuel; and continued large purchases by China, including its follow-through on actual grain shipments.

Farm supply retailers benefitted from the grain price rally and are poised for a favorable spring agronomy season, weather permitting. Armed with liquidity, growers took advantage of generally favorable weather to conduct post-harvest fall fertilizer applications and other field activities. It is likely that as farmers sought to mitigate tax liabilities by year-end, they increased prepayments to cooperatives, providing ag retailers with additional working capital.

The U.S. ethanol sector continued to recover during Q4, with average daily production reaching 14.7 billion gallons, equaling 90% of pre-COVID supply and demand levels. Operating margins retreated however to $0.11 per gallon, principally due to a dramatic 26% increase in corn input costs. Fuel ethanol’s production outlook could improve somewhat in 2021 if COVID-19 vaccine deployment fosters a return to workplaces. Although, a continued rise in corn prices will compress operating margins.

Profit margins for chicken producers during Q4 were generally below break-even, but average industry margins ended the quarter in a far better position than where they started, due to a 2% pullback in supply. What makes this margin improvement noteworthy is it occurred amid rising feed costs, but contraction in chicken supply helped prices for leg quarters, wings, and whole birds to climb through year-end.

The U.S. pork sector worked through the backlog of hogs over the summer and started the fourth quarter relatively current in most parts of the country. That along with the boost in trade expectations following the discovery of African Swine Fever (ASF) in Germany delivered the best spot producer margins of the year in October. These margins eroded through the quarter though as fears of capacity issues and higher feed costs began to take their toll, as did margins for pork packers.

U.S. beef demand performed well during the fourth quarter, despite the challenging foodservice environment. The beef cutout made a strong rally in November as many consumers switched to beef for their holiday meals in light of smaller gatherings. With limited available industry capacity and a challenging labor environment, beef packers continue to benefit from strong margins and producers and feeders are increasingly focused on the feed market.

Milk and dairy products ended 2020 in ample supply despite the seasonal spike in holiday demand, which was down significantly compared to prior years. That could lead to even greater surplus supply issues for dairy producers and processors leading into the 2021 spring flush. USDA’s fifth round of food purchases under the Farmers to Families Food Box Program will be a needed short-term release valve for dairy products in the opening months of 2021.

Extreme tightness in South American rice supplies continues to support global rice prices heading into 2021, with the U.S. benefiting as the nearby rice exporter into the region. China remains the central figure behind the rally in U.S. cotton prices that ended the year up nearly 9%, while recoveries in crude oil and other commodities have helped cotton return to the highest level in two years.

U.S. tree nut growers are heading into 2021 with record inventories of almonds, pistachios, and walnuts following last fall’s record tree nut harvest. The hefty nut crop increases the importance on the export market in the marketing year ahead. While exporters are aided by weakness in the dollar and a recovery in the Chinese economy, the global container shortage is impeding shipments.

The year-end collapse in natural gas prices is closing the door on a comeback for U.S. coal plants. To date, the COVID-19 fallout has not altered plans to retire coal-fired plants, with the next five years likely to witness a quickening pace of decommissioning. While the past decade saw 97 GWs of coal plant retirements, it’s quite possible that same capacity could be shuttered by mid-decade.
Read The Quarterly. Each CoBank Quarterly provides updates and an outlook for the Macro Economy and U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Specialty Crops; Other Crops and Rural Infrastructure Industries.