Thursday January 21 Ag News

 Rural Mainstreet Economy Stabilizes in Growth Range: Concerns Over Loan Defaults Drops Significantly
 
For the third time in the past four months, the Creighton University Rural Mainstreet Index (RMI) climbed above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the index increased to its second highest level since January 2020.          

Overall: The overall index for January rose to 52.0 from December’s 51.6. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Recent sharp improvements in agriculture commodity prices, federal farm support payments, and Federal Reserve’s record low short-term interest rates have underpinned the Rural Mainstreet Economy in a solid and positive growth range. However, the rural economy remains well below pre-pandemic levels,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.  

“Bankers reported that their biggest economic concerns for 2021 are excessive inflation and higher long-term interest rates,” said Goss.

Jim Levick, president of Nebraska State Bank in Oshkosh, Nebraska said, “I feel the economy is moving in a positive direction that can be rattled by a combination of higher taxes, higher inflation, and a return of stricter regulation.”

Farming and ranching: For a fourth straight month, the farmland price index advanced above growth neutral. The January reading climbed to 56.3, its highest level since July 2013, and was up from 55.0 in December. This is first time since 2013 that Creighton’s survey has recorded four straight months of above growth neutral farmland prices.

The January farm equipment-sales index rose to 54.5, its highest reading since April 2013, and up from 50.2 in December. After 86 straight months of readings below growth neutral, farm equipment sales bounced into growth territory for the last two months.    

“As a result of the rapidly improving farm economy, the farm Exchange Traded Fund (MOO) traded on the New York Stock Exchange has risen to a record high of $83.32,” said Goss.  

Banking: Bankers once again reported anemic loan volumes. The January loan volume index dropped to 33.9 from December’s 43.7, but up from November’s record low 25.8. The checking-deposit index soared to record high 88.0 from December’s 78.1, while the index for certificates of deposit, and other savings instruments increased to 46.0 from 42.2 in December.

“Approximately 44% of bank CEOs expect low loan demand to be the greatest issue facing their banks for 2021. This is up from 7% that recorded this as a top concern last year at this time,” reported Goss.

“One year ago, 32% of bankers indicated that rising loan defaults and bankruptcies were their greatest concern for 2020. This is significantly above the 4% of bankers that registered this as their greatest 2021 issue,” said Goss.    
 
However, 24% indicated that rising competition from untaxed credit unions and Farm Credit posed the greatest 2021 bank threat. This is well up from the 5% recorded last year at this time. Joseph Anglin, senior vice president and chief financial officer at Pioneer Bank & Trust in Rapid City, South Dakota, said, “We compete day-in-and-day-out with them and they simply have a 21% advantage that they can leverage over tax paying banks.”

Below are the state reports:
Nebraska: The Nebraska RMI for January expanded to 55.6 from December’s 54.2. The state’s farmland-price index declined to 56.1 from last month’s 56.2. Nebraska’s new-hiring index fell to 45.4 from 52.3 in December. Rod Cornelius, Branch President, Pinnacle Bank, Ogallala said, “Increase in grain prices - bonus for the procrastinating marketer.” Over the past 12 months, Nebraska’s Rural Mainstreet economy has lost 3.0% of its nonfarm employment compared to a 2.6% loss for urban areas of the state.   

Iowa: The January RMI for Iowa increased to 51.2 from December’s 50.2. Iowa’s farmland-price index rose to 55.9 from 54.1 in December. Iowa’s new-hiring index for January fell to 46.6 from 50.3 in December. James Brown, CEO of Hardin County Savings Bank in Eldora, reported, “Our ag customer reviews have been much better than we anticipated last fall due to improved commodity prices and insurance payments from the derecho.” Over the past 12 months, Iowa’s Rural Mainstreet economy has lost 6.0% of its nonfarm employment compared to a 4.5% loss for urban areas of the state.   

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities, and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.   

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Increased nitrate levels in the groundwater could put your family’s health at risk

Is your drinking water putting your health at risk?  The maximum contaminant level of nitrate-nitrogen for drinking water is 10 parts per million (ppm), anything over that amount is not safe to drink.

Nitrate contamination can be particularly harmful to infants and children. Consuming drinking water containing high nitrate levels can limit the ability of red blood cells to absorb oxygen. This condition, defined in the health industry as methemoglobinemia or ‘blue-baby syndrome’, is one of the most acute health implications.

“I was the parent of a severely handicapped child.  Blue-baby syndrome can occur during pregnancy or during the first 6 months of a baby’s life.  It can cause developmental problems that could be with that child forever.  The lifetime of challenges that come with raising a child with disabilities can be overwhelming,” said, Dave Kathol of Norfolk.  “Imagine how quickly your life could change.  Would you be prepared to handle it, financially and emotionally?”

Birth defects in Nebraska are on the rise, and within the Lower Elkhorn Natural Resources District (LENRD) evidence indicates that these health implications are increasing at a faster rate than the rest of the state.  According to a research study that Dr. Jesse Bell, University of Nebraska Medical Center professor of health and environment discussed, birth defects, on a national scale, occur in 3.3 percent of all live births, and Nebraska exceeds the national average with 5.8 percent.  “In Dodge and Pierce Counties, in northeast Nebraska, however, the rate of birth defects is reaching as high as 14 percent.  The counties with higher birth defects also have a greater prevalence of agrichemicals in the water,” said Bell.

Health researchers are also gaining additional insight on the potential link between nitrate contamination in drinking water and Nebraska’s high rate of pediatric cancer. According to the Centers for Disease Control & Prevention, Nebraska has one of the highest rates of pediatric cancer in the United States. A study out of the University of Nebraska Medical Center has found that 63 percent of Nebraska counties exceed the national average for pediatric brain tumors. Bell continued, “Our research shows that Nebraska counties with groundwater nitrate concentrations between 2.1 and 5 mg/L have higher incidence of pediatric brain cancer, pediatric leukemia, and pediatric lymphoma.”

High concentration of nitrates in drinking water have also been linked to additional adverse health risks, such as:  colorectal cancer, thyroid cancer, stomach and kidney cancer, ovarian cancer, Alzheimer’s, Diabetes, and Parkinson’s Disease.

“Water quality is a top priority for this district,” said LENRD General Manager Mike Sousek. “High nitrate in your drinking water poses health risks for you and your family. While the body of science is still limited on some of these risks, the long-term implications deserve our attention.”

Nitrate is found naturally in the environment; however, evidence shows that excess nitrate comes primarily from the use of commercial fertilizers (both organic and manufactured). Nitrate dissolves readily in water and can easily transport beyond the root zone if unused by a growing crop to contaminate groundwater.

The LENRD is responsible for the development, management, utilization, and conservation of groundwater and surface water. As part of the Groundwater Quality Sampling Program, technicians collect annual water samples to document changes or trends in groundwater quality. In recent years, this annual monitoring has provided evidence of elevated levels of groundwater nitrate in portions of Cuming, Colfax, and Dodge Counties. In October 2020, the LENRD Board of Directors voted to begin the formal process of considering a Phase 2 Groundwater Management Area in portions of these three counties.

“While imposing regulations is not something we enjoy doing, it is necessary that we work together to implement best management practices to reduce groundwater contaminates and protect our drinking water,” said LENRD Assistant Manager Brian Bruckner. “We invite all stakeholders to join us at the Open House Public Hearing as we look at the results of the groundwater monitoring and address potential health risks and the critical need to protect our water supply.”

Bell added, “We want to further educate the public about the relationship between birth defects and the exposure to agrichemicals as we enhance monitoring efforts and continue our research. We see agriculture as part of the solution and want to develop partnerships between the ag community and public health community to help address these issues for a safer Nebraska.”

The Lower Elkhorn NRD seeks the public’s feedback during an Open House Public Hearing on Thursday, March 25th at the Nielsen Center in West Point from 5:00-7:00 p.m.  The hearing was postponed from the original date due to COVID restrictions.  During the open house, additional insight on the monitoring and assessment segment of this process will be provided along with an explanation of the proposed management area boundaries and controls for a Phase 2 Groundwater Management Area. For more information, contact LENRD at 402.371.7313.



NDA’S 2021 POSTER CONTEST HIGHLIGHTS NEBRASKA AGRICULTURE

To recognize and celebrate the important role agriculture plays in our everyday lives, the Nebraska Department of Agriculture (NDA) is asking students to enter its annual poster contest highlighting the state’s number one industry. This year’s theme, “Nebraska Agriculture: Straight from the Good Life,” promotes agricultural products grown, raised and/or made in Nebraska. NDA’s poster contest is open to all Nebraska students (public, private and home school) in first through sixth grades.

“Nebraska agricultural products are high quality and enjoyed by consumers around the world,” said NDA Director Steve Wellman. “NDA’s annual poster contest gives parents and teachers the opportunity to talk with students about different ag-related topics like food production and international trade. We look forward to seeing the students’ creativity as they show their versions of how Nebraska agriculture comes straight from the good life.”

NDA’s poster contest is divided into three age categories: first and second grade students; third and fourth grade students; and fifth and sixth grade students, in any Nebraska public, private or home school. Entries must be received at NDA’s office by the March 1, 2021, deadline.

NDA will announce the winners of this year’s poster contest during National Ag Week, March 21-27, 2021. National Ag Week highlights the diversity of agriculture and celebrates the food, feed and fuel that farmers and ranchers provide every day. NDA will feature winning entries from this year’s poster contest on its website and in promotional materials and publications.

Poster contest rules and official entry forms are available online at nda.nebraska.gov/kids. For more information, contact Christin Kamm at 402-471-6856 or by email at christin.kamm@nebraska.gov.

This year’s theme is based off of NDA’s “Nebraska: Straight from the Good Life” branding program which features Nebraska companies and the ag products they export. The program gives NDA more ways to effectively market and promote Nebraska agricultural and food companies to consumers worldwide. Straight from the Good Life is open, at no cost, to any and all ag and food companies headquartered in Nebraska or with a significant presence in Nebraska, including companies providing grains, meat, consumer-oriented foods, agricultural equipment and agricultural services.

For more information, visit nda.nebraska.gov/goodlife.



NE Cattlemen YCC Class of 2021
Bonita Lederer, NC Director of Producer Education

After serious thought and discussion I feel it is best that we postpone the YCC 2021 till January 2022.  Giving each class the best experience is my number one goal and I have been challenged by Covid in setting up the tours and meetings that have been a part of our YCC program for many years.  Nebraska Cattlemen wants our class participants to have the opportunity to be involved in the two year program and get the most out of the program.  I hope that 2021 is a year of forward progress that will allow us to get back out and enjoy the great state of Nebraska and all the beef industry has to offer.  

YCC 2022 will meet the week of January 17, 2022

YCC 2020 is kicking off their second year.  They will be meeting in Kearney this next week with the NC Board of Directors.  They will be touring Phelps Co Feeders, Wards Labs, working on a media project with Bryce Doeschot and attending a York Hamilton Co Cattlemen meeting on Tuesday.  If you have any suggestions for tours or events for the program please feel free to share those ideas with me.

I will be working on a YCC all class reunion this summer.  Gathering the past classes for an event to catch up, network and challenge them to stay involved in the Nebraska Cattlemen.  We will work on membership, fundraising and industry building projects this summer and fall with our YCC graduates.  



CASNR SCHOLARSHIP COMPETITION OPENS TO CURRENT, PROSPECTIVE STUDENTS

The College of Agricultural Sciences and Natural Resources at the University of Nebraska-Lincoln has announced its second annual quick-pitch scholarship competition for students who dare to dream big and do the extraordinary to address worldwide issues.

The CASNR Change Maker Quick Pitch Competition asks current and prospective CASNR students to submit a two-minute video explaining an original, innovative way to address global issues such as food security, sustainability and water use. Two current CASNR students and eight incoming freshman and transfer students will be awarded full-tuition scholarships for the 2021-22 academic year based on their submitted videos. Winning students will be matched with a mentor to make their big idea a reality.

Additionally, eight $1,000 CASNR scholarships will be awarded to youth in the sixth through 11th grades.

“We want innovators, change-makers and future leaders to get their start right here in the College of Agricultural Sciences and Natural Resources,” said CASNR Dean Tiffany Heng-Moss. “This competition will reward our current students who strive to tackle these big issues. At the same time, we hope to attract new students who are in search of a college experience in which they will be encouraged and expected to challenge themselves and change the world in the process.”

In Nebraska, one in four jobs is tied to agriculture and natural resources. Within CASNR, students, faculty and staff are already engaged in important work to provide food, fuel, feed and fiber to a rapidly growing world, while conserving agricultural landscapes and natural resources and maintaining quality of life for farmers and ranchers, said Mike Boehm, vice chancellor and vice president of the university’s Institute of Agriculture and Natural Resources.

“Our state’s deep roots in agriculture, coupled with Nebraska’s abundant natural resources and our ingenuity and grit, make CASNR the ideal and natural epicenter for nurturing the world’s next generation of change-makers,” Boehm said. “We want to do everything we can to build on CASNR’s culture that allows students to think critically, dream big and accomplish extraordinary things.”

Students who participated in the 2020-21 scholarship competition said it was an opportunity to make an impact on the world, discover and be active in their passions and show others that the possibilities are endless.

Alex Lautenschlager, a freshman fisheries and wildlife major and a recipient of a 2020-21 Change Maker scholarship, focused his project on improving accessibility at public parks.

“The Change Maker Scholarship and the CASNR community has helped me discover my passion by reinforcing what I believe in and helping me find ways to be active in my passions,” he said.

The 2020-21 Change Maker recipients addressed a variety of other topics. Lydia Storm, a freshman from Lawrence, Kansas, focused her project on encouraging girls and young women to get involved in STEM programs. Cole Simmons, a freshman from Kansas City, Missouri, hopes to create an enzyme that cost-efficiently dissolves plastics to reduce landfills. A host of other innovative students have developed ideas that will make change.

Current and prospective students can apply online at https://casnr.unl.edu/casnr-change-maker-competition. Videos should be no more than two minutes long and must focus on one or more of the following issues: feeding the world; water for the future; new energy; climate and the future; biodiversity, sustainability and the environment; health; engaging diverse communities; and developing tomorrow’s leaders.

The application period opened Jan. 18 and will close at noon Feb. 19. Winners will be announced in April, and winning videos will be shared on social media. The winner whose video receives the most likes will also receive a textbook scholarship.

Complete application guidelines and more information can be found online at the webpage above.



ONLY 1 Month Away - NA-BA Soils School LIVE Stream

You'll pick up some of the best information at the 2021 Soils School co-sponsored by the Nebraska Agri-Business Association and the Department of Agronomy & Horticulture of the University of Nebraska-Lincoln. This year's school will be conducted on the Zoom platform and offers CCA CEUs in the Soil & Water Performance Objective (9.0) and Nutrient Management Performance Objective (7.0) for a total of 16 CEUs.

Watch the LIVE STREAM on February 17-18, 2021 or earn credits by accessing the recordings and self-reporting your CEUs. Videos and presenter slides will be made available electronically for registrants not in attendance following the event. (To earn credits during the Live Stream, you must register individually and watch on a unique device.)

There is a $200 registration fee for members of the Nebraska Agri-Business Association and $300 registration fee for non-members.

Click the buttons below for a full agenda and to register for this event. To Watch LIVE, please register by February 12, 2021.

Agenda Here:  https://files.constantcontact.com/88ed6bc7401/8f2b546b-624d-47fb-a44f-5befd15b42b1.pdf

Registration link here:  https://connect.gomembers.com/f/index.php?.  



Record High Red Meat, Beef, and Pork Production in December

Commercial red meat production for the United States totaled 4.85 billion pounds in December, up 3 percent from the 4.73 billion pounds produced in December 2019.

Beef production, at 2.32 billion pounds, was 3 percent above the previous year. Cattle slaughter totaled 2.78 million head, up 1 percent from December 2019. The average live weight was up 16 pounds from the previous year, at 1,389 pounds.

Veal production totaled 5.6 million pounds, 14 percent below December a year ago. Calf slaughter totaled 40,600 head, down 19 percent from December 2019. The average live weight was up 14 pounds from last year, at 242 pounds.

Pork production totaled 2.51 billion pounds, up 3 percent from the previous year. Hog slaughter totaled 11.5 million head, up 1 percent from December 2019. The average live weight was up 6 pounds from the previous year, at 294 pounds.

Lamb and mutton production, at 12.0 million pounds, was down 1 percent from December 2019. Sheep slaughter totaled 197,800 head, 1 percent above last year. The average live weight was 121 pounds, down 2 pounds from December a year ago.

BY STATE       (million lbs   -  % of Dec '19)
Nebraska .......:        678.3            100       
Iowa ..............:        775.8            101       
Kansas ...........:        510.0            105       

January to December 2020 commercial red meat production was 55.7 billion pounds, up 1 percent from 2019. Accumulated beef production was down slightly from last year, veal was down 14 percent, pork was up 2 percent from last year, and lamb and mutton production was down 7 percent.



NEBRASKA CHICKENS AND EGGS

All layers in Nebraska during December 2020 totaled 7.90 million, down from 9.14 million the previous year, according to the USDA's National Agricultural Statistics Service. Nebraska egg production during December totaled 203 million eggs, down from 234 million in 2019. December egg production per 100 layers was 2,566 eggs, compared to 2,554 eggs in 2019.

IOWA: Iowa egg production during December 2020 was 1.26 billion eggs, up 3% from last month but down 15% from last year, according to the latest Chickens and Eggs report from the USDA’s National Agricultural Statistics Service. The average number of all layers on hand during December 2020 was 48.2 million, up slightly from last month but down 18% from last year. Eggs per 100 layers for December were 2,620, up 2% from last month and up 4% from last year.

December US Egg Production Down 2 Percent
United States egg production totaled 9.60 billion during December 2020, down 2 percent from last year. Production included 8.33 billion table eggs, and 1.26 billion hatching eggs, of which 1.17 billion were broiler-type and 87.4 million were egg-type. The total number of layers during December 2020 averaged 391 million, down 3 percent from last year. December egg production per 100 layers was 2,453 eggs, up 1 percent from December 2019.
                                    
All layers in the United States on January 1, 2021 totaled 391 million, down 3 percent from last year. The 391 million layers consisted of 325 million layers producing table or market type eggs, 62.4 million layers producing broiler-type hatching eggs, and 3.37 million layers producing egg-type hatching eggs. Rate of lay per day on January 1, 2021, averaged 78.3 eggs per 100 layers, up 1 percent from January 1, 2020.

Egg-Type Chicks Hatched Up 16 Percent
Egg-type chicks hatched during December 2020 totaled 53.4 million, up 16 percent from December 2019. Eggs in incubators totaled 50.8 million on January 1, 2021, up 6 percent from a year ago.  Domestic placements of egg-type pullet chicks for future hatchery supply flocks by leading breeders totaled 461 thousand during December 2020, up 53 percent from December 2019.

Broiler-Type Chicks Hatched Down 1 Percent
Broiler-type chicks hatched during December 2020 totaled 848 million, down 1 percent from December 2019. Eggs in incubators totaled 712 million on January 1, 2021, down slightly from a year ago.  Leading breeders placed 8.43 million broiler-type pullet chicks for future domestic hatchery supply flocks during December 2020, down 2 percent from December 2019.



ICA to Host Virtual Annual Meeting on January 26

Due to restrictions related to COVID-19, the Iowa Cattlemen’s Association hosted six policy committee meetings on Zoom. We were able to reach over 300 producers throughout December and January. Attendees discussed, debated, and voted on expiring and new policies and directives.

The last step in the execution of the policy development process is ratification during the Annual Meeting on January 26 at 12:00 p.m. During the Annual Meeting, members will have the opportunity to vote on policies recommended by their respective committees. Voting will take place using the polling feature on Zoom. Members joining by phone will be asked to speak if opposed.

“The Iowa Cattlemen’s Association is proud to be a member-driven, grassroots organization. The policy development process provides opportunities for members to influence the work we do each and every day,” said Cora Fox, Director of Government Relations. “While different from years past, we found that multiple virtual meetings provided additional time to better resource our members on important issues.”

Over the past seven weeks, members committed many hours to thoughtful and thorough policy discussion focused on topics such as: negotiated cash trade, standards for delivery, and farm programs--just to name a few. Their dedicated efforts will continue to support Iowa’s beef business for years to come.

The Annual Meeting will conclude formal policy development. You must be a current producer member to participate. Registration is required, but there is no cost.

To register for the ICA Annual Meeting, visit: www.iacattlemen.org.



Deadline to Sign Up for Cover Crop Insurance Discounts Extended to January 27

Iowa Secretary of Agriculture Mike Naig has extended the deadline for farmers who planted fall cover crops to sign up for a $5 per acre reduction on their 2021 crop insurance premiums. Farmers and landowners now have through January 27 to sign up online at apply.cleanwateriowa.org.

Fall 2020 cover crop acres enrolled in other state or federal cover crop cost-share programs are not eligible. Farmers who received prevent plant payments in 2020 are still eligible for the discounted insurance premiums.

The insurance premium reductions will be available for fall-planted cover crops with a spring-planted cash crop. Some insurance policies may be excluded, like Whole-Farm Revenue Protection, or those covered through written agreements. Participants must follow all existing farming practices required by their policy and work with their insurance agents to maintain eligibility.

For questions regarding the application process, call 515-281-5851 or email covercropdemo@iowaagriculture.gov.

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

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



Triple Whammy of RFS Abuse, Closed Global Markets, and COVID-19 Leads to Significant Reduction in Iowa Ethanol Production in 2020

Compared to 2019, Iowa ethanol production fell 500 million gallons, or 12 percent, in 2020 as a result of dramatic demand destruction resulting from the COVID-19 pandemic, trade disputes around the globe, and illegal exemptions granted from the Renewable Fuel Standard (RFS). Producing only 3.7 billion gallons, 2020 was the second year in a row that Iowa ethanol production dropped following 2018’s record of 4.35 billion gallons.

Iowa Renewable Fuels Association Executive Director Monte Shaw called on state and federal leaders to take action to grow demand in 2021.

“While a pandemic is unpredictable and trade disputes are difficult to resolve, there are steps that our leaders can take today to begin to heal the demand destruction done to Iowa’s ethanol producers,” Shaw said. “President Biden can instruct his EPA to properly enforce the RFS as Congress intended. Congress has the opportunity to ensure that any legislation they consider to reduce emissions is technology-neutral and provides biofuels — the only tool in our toolbox ready to reduce carbon emissions on a grand scale today — a level playing field.

“We also believe that Midwestern states should not cede the fuel policy debate to the East and West coasts. We are seeing aggressive attempts on both coasts to ignore science and push low carbon biofuels out of the picture in favor of electric vehicle mandates. Here in Iowa, we will work with Governor Kim Reynolds and the legislature to continue to create growth opportunities for biofuels use.”



D.C. Circuit Court Stays EPA Action Granting Refinery Waivers

In response to an emergency motion filed Tuesday evening by the Renewable Fuels Association, the U.S. Court of Appeals for the D.C. Circuit today ordered that EPA’s action on Tuesday to grant three small refinery petitions must be “administratively stayed pending further order of the court.”

The order prevents EPA from further processing the small refinery exemptions, at least until the court has had “sufficient opportunity to consider the emergency motion for stay.” EPA has until February 3 to respond to the motion, and any replies are due to the court by February 10.

The stay comes roughly 36 hours after EPA approved two 2019 waiver petitions and one 2018 petition, which—if allowed to stand—would erase another 260 million gallons of Renewable Fuel Standard blending requirements.

“We took this action immediately to prevent the agency from doing further economic damage to an industry already reeling from the impacts of COVID-19,” said RFA President and CEO Geoff Cooper on Tuesday when the motion was filed. “To avert additional harm to the ethanol industry, EPA must be prevented from returning any compliance credits (RINs) to the unidentified refiners who were given these last-minute exemption handouts.”



Stipulation and Agreed Order Requires Dean Foods to Pay 90 Percent of its Post-Bankruptcy USDA Milk Marketing Obligations

On January 15, 2021, the Honorable Chief Judge David R. Jones, of the United States Bankruptcy Court for the Southern District of Texas, signed and entered a Stipulation and Agreed Order (Order) between the U.S. Department of Justice (DOJ), which is serving as legal counsel of record for the United States Department of Agriculture (USDA), and Dean Foods.

The Order requires Dean Foods to pay within 30 days $29,082,182.26, which is 90 percent of its obligations to the USDA for milk marketed in April 2020 and May 2020.

On November 12, 2019, Southern Foods Group, LLC, et al., (Dean Foods) filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. At that time, Dean Foods had 43 plants regulated by the federal milk marketing order (FMMO) system. Subsequent to the filing date, Dean Foods, as the Debtor-in-Possession (Dean DIP), failed to make payments to USDA for milk marketed from April 1, 2020, through May 4, 2020, totaling $32,313,535.84. The missed payments included monies owed to the FMMO program, the National Dairy Research and Promotion Program and the National Fluid Milk Processor Promotion Program.

Upon receipt of payment, USDA will remit monies owed to FMMO-regulated handlers and the Dairy and Fluid Milk Promotion Boards. Once handlers receive payments from USDA, FMMO regulations require that the money be promptly remitted to producers.

Procedures for handler payments to producers will be communicated through the respective FMMO Market Administrators.

Dean Foods’ $16 million pre-petition debt owed to USDA is not covered by this Stipulation and Agreed Order. USDA filed timely Proofs of Claim for these pre-petition obligations and will continue to pursue payment of those claims through the bankruptcy proceeding.



USDA Announces Three Deputy Under Secretaries

The U.S. Department of Agriculture announced three senior appointments today.

USDA announced that nutrition policy expert Stacy Dean has been named Deputy Under Secretary for Food, Nutrition, and Consumer Services (FNCS). Prior to joining USDA, Dean served as Vice President for Food Assistance Policy at the Center on Budget and Policy Priorities in Washington, D.C. She directed the Center’s food assistance team, which publishes frequent reports on how federal nutrition programs affect families and communities and develops policies to improve them. She joined the Center in 1997 and has deep experience understanding the delivery of health and human services programs at the state and local levels. Previously, as a budget analyst at the Office of Management and Budget, she worked on policy development, regulatory and legislative review, and budgetary process and execution for a variety of income support programs. Dean earned her bachelor’s and master’s degrees in public policy from the University of Michigan.

USDA also announced Justin Maxson, CEO of the Mary Reynolds Babcock Foundation, has been named Deputy Under Secretary for Rural Development. Maxson served as the CEO of the Mary Reynolds Babcock Foundation, an organization that works toward poverty alleviation and economic justice in southern states. Before that, he spent 13 years as the president of the Mountain Association for Community Economic Development. Maxson holds a master’s degree in anthropology and development from Boston University and a bachelor’s degree in anthropology from the University of Kentucky.

USDA also announced that Mae Wu has been named Deputy Under Secretary of Marketing and Regulatory Programs. Prior to joining USDA, Wu served as a Senior Director at the Natural Resource Defense Council, helping to lead the organization’s health and food work. She has also worked with the federal government to revise the Total Coliform Rule, as well as served on the Environmental Protection Agency’s Pesticide Program Dialogue Committee and its National Drinking Water Advisory Council. Wu holds a bachelor’s degree in chemical engineering from Rice University, a master’s degree in environmental policy from the University of Cambridge, and a Juris Doctor from Duke University.

“We are honored to have professionals of the caliber of Stacy, Justin and Mae join our team—three experts with depth of knowledge, experience and respect from peers and colleagues across nutrition, economic development, and food and environmental security. Their talents will help us end the pandemic’s grip on our economy, address the urgency of hunger and climate change, and maintain the safety and security of our food,” said Katharine Ferguson, Chief of Staff, Office of the Secretary.



 Technical Consult Helps Improve Starch Analysis For Mexican Beef Producer

Helping end-users troubleshoot technical issues or learn how to best use U.S. coarse grains and co-products is one part of the U.S. Grains Council’s (USGC’s) work around the world. In Mexico, the Council recently helped find an answer to why one of the largest beef producers in Latin America was seeing inconsistent test results on steam-flaked corn and, in the process, helped to maintain sales to this important customer.

“After we successfully administered a program in summer 2020 examining corn quality management in the company’s feed mills, they asked us to address other issues in their feed milling operations related to starch analysis,” said Heidi Bringenberg, USGC assistant director in Mexico. “Thanks to the technical work conducted with the company, they continued to purchase U.S. corn during a difficult import season, which otherwise might not have occurred.”

Mexico is traditionally the largest buyer of U.S. corn, responsible for almost one-third of exports in the 2019/2020 marketing year at nearly 14.5 million metric tons (570 million bushels). Within this market, the Council has worked extensively for decades with the beef feedlot sector to improve feed rations and feeding and management practices.

As this industry has grown, the Council has continued to provide market information and one-on-one technical support. This role as a trusted advisor has remained important as large beef producers shifted their focus to optimizing feeding costs to obtain the maximum gain at the best investment.

Starch is important in steam-rolling operations as it affects nutrient utilization. Both the steam and rolling of the corn kernel allows for easier access to the starch, making it more digestible in both ruminant and monogastric animals and impacting the overall feeding value of both corn and the full ration. A major Mexican beef producer was concerned about varied flake density among steam flakers within a single mill and between feedlots, which caused concerns about the effectiveness of machinery and management.

The Council consulted with a cattle nutritionist to work directly with the company’s technical team on the issue. He analyzed their data to determine why spikes were occurring with the percentage of starch availability.

The standard measurement for starch availability is bushel weight – or the volume of one bushel weight for a given sample of flaked corn. The measurement provides a way to assess flake quality by estimating the starch availability of steamed-flaked corn. The density of bushel weight is influenced by several factors, including type and dimension of flaking equipment, grain type, grain variety, moisture content, roll wear and steam-flaking procedures. As a result, different feed yards and feed mills will show a different percentage of starch availability, making it important to have an accurate and consistent method to measure bushel weight.

The Council’s technical consultant traced differences in the company’s samples to this inconsistent measurement, which caused fluctuations in temperature or time during drying from the time samples were taken in the feed mill or feedlot and when the samples were tested in the lab. As a result, some starch in the steam-flaked corn had an adverse reaction - retrogradation or reassociation with starch molecules that have been separated during gelatinization when the temperature is increased after the corn leaves the rolls in the machine.

The Council took these results back to the company, which is now implementing measures to obtain more accurate sampling and testing of the corn used in their feedlots. New protocols are now in place to help provide more consistent analysis, including measuring bushel density at the feedlot; spreading samples and allowing time to cool before packaging; and drying samples consistently before testing.

“Providing technical education is key to increasing demand in Mexico,” Bringenberg said. “We will continue to work with the beef sector to troubleshoot issues when they arise and more broadly convey the economic and nutritional advantages of U.S. coarse grains and co-products.”



Why Reentering the Paris Accord Is Important for U.S. Agriculture

Sworn into office yesterday, President Joe Biden signed an executive order restoring U.S. participation in the Paris Climate Agreement. SfL endorses this move because the future of agriculture is being shaped at this global negotiating table, and we need the presence and leadership of the United States government to ensure that the needs and contributions of U.S. farmers, ranchers and foresters are met and maximized.

These discussions involve much more than pathways to reduce and sequester greenhouse gasses. They also include pragmatic ways to adapt, improve resilience and sustainably intensify production of food, fiber and a wide range of ecosystem system services provided by sustainably managed farms, ranches and woodlands.

Though our direct participation in the United Nations Framework Climate Change Convention (UNFCCC), we have had a close-up view of what is happening on this stage. Well-organized coalitions are using this platform to advance a transformational reform agenda based on the premise that current agricultural systems are broken and a root cause of climate change. Included in their ranks are animal rights, plant-based diet, environmental, social justice, health and nutrition and other activists who argue that agriculture is the problem, not the solution, and the only way forward to save the planet is to change how we farm and what we eat.

Some of their ideas have merit and are worth exploring. But their wholesale rejection of innovation and technology, a hallmark of the continuous improvement that U.S. agriculture has demonstrated over centuries, and their full-throated endorsement of silver-bullet approaches to food and fiber production, are not rooted in science and need to be countered. That's why SfL participates and why U.S. government engagement is so critically important.

Science tells us that climate related challenges will likely intensify in the coming years. National and global climate assessments, as well as state evaluations of their respective climate vulnerabilities, make very clear the challenges we all have ahead of us are mounting and require action now.

Like it or not, agriculture is a principal discussion topic in the UNFCCC. The conversations that take place and the decisions that are reached will shape the future of U.S. agriculture. It is often said that "the world is run by those who show up," and the United States agricultural sector takes itself out of that category when it refuses to come to the table.

We applaud the growing number of agricultural leaders and organizations that recognize the threat that climate change poses and are stepping up to help shape an appropriate response. SfL stands ready to work with global, national and industry decision makers to fully enable land-based solutions to global challenges.



Bayer’s Third Generation Corn Rootworm Trait Gains Final Approval; SmartStax® PRO Technology to Launch in US in 2022

Bayer announced today receipt of the final safety certificate for import and food/feed use from China’s Ministry of Agriculture and Rural Affairs for the company’s third-generation corn rootworm trait (MON 87411). This approval represents the final key authorization for commercial introduction of SmartStax® PRO Technology in the United States.

SmartStax® PRO Technology is the next generation of corn rootworm protection, and the first product offering three modes of action for corn rootworm control. It combines the proven benefits of SmartStax® Technology corn rootworm protection with a novel RNAi-based mode of action, providing improved control of corn rootworm over a range of pressure.*

“We’re excited to receive this authorization and look forward to putting SmartStax® PRO Technology in the hands of our grower customers,” said Scott Stein North America Corn Product Management Lead. “The introduction of a novel mode of action like RNAi will provide growers yet another tool to help control tough corn rootworm pests.”

RNAi-based technologies are developed from a naturally occurring process in the targeted plant or pest to stop or decrease the production of a specific protein and can be used to target specific pests, like the corn rootworm.

In addition to corn rootworm, SmartStax® PRO Technology will offer growers protection against European corn borer, southwestern corn borer, fall armyworm, black cutworm and corn earworm.

“This is another example of Bayer’s continued commitment to providing new, innovative solutions and industry-leading technology that help growers address the tough challenges they face on their farms,” said Dr. Calvin Treat, Head of Crop Technology for Corn, Soybeans and Cotton. “We’re confident that SmartStax® PRO Technology will provide tremendous value for growers.”

Bayer plans to conduct on-farm grower market development trials in 2021, while ramping up volume to meet grower needs for a U.S. commercial launch in 2022. Bayer also expects to have products to launch in Canada in 2023.



Syngenta, researchers agree starting clean is key to higher yields

As the calendar turned the page to 2021, Syngenta turned to its panel of a dozen university agricultural experts for insights on how to both prepare for a high-yield growing season and implement weed management practices that will pay dividends for years to come.

Researchers emphasize that early-season weed management is the key. “The biggest point that has been reinforced through our research is the value of early-season weed control,” said Charlie Cahoon, Ph.D., extension weed specialist at NC State University. “We have seen a 13- to 33-bushel yield advantage in corn when we start the season clean with a preemergent followed by a timely post-emergent herbicide, compared to a post-emergent-only system.”

“Weeds are going to compete with the crop, whether it's corn or soybeans,” added Mark VanGessel, Ph.D., extension weed specialist at the University of Delaware. “They are taking up nutrients and moisture and intercepting light that the crop requires for photosynthesis. Responding to that weed competition, crops will alter their growth habits, and that can affect yield.”

Syngenta herbicide experts consulted with these leading university researchers to underscore the tough reality that weed management is an ongoing challenge with implications far beyond the upcoming growing season.

“It’s more about weed management than weed control,” said Mark Kitt, herbicide technical product lead for Syngenta. “There are long-term implications of effective management: not adding to the soil seed bank and ensuring that even after harvest you are managing weeds so you have a clean field and are preserving the land for future generations. To achieve this, the first step is applying a very strong residual product, whether for corn or soybeans, to start clean.”

Crop rotation is also a factor in the weed management equation. “If you grow a clean crop, whatever you're rotating to is going to be much appreciative that you didn't rotate weeds into it,” noted Wayne Keeling, Ph.D., professor in the Department of Soil and Crop Sciences at the Texas A&M AgriLife Research Center at Lubbock. “So that's all the more reason to do the best job you can in each crop so that you're not making it more difficult for the rotational crop.”

To achieve the highest yield potential, Syngenta offers a robust portfolio of weed management solutions for both corn and soybeans.

“Acuron® corn herbicide is formulated for the concerns expressed by our researcher panel,” said Steve Gomme, herbicide product marketing lead for Syngenta. “It helps growers by delivering four active ingredients, including Syngenta-exclusive bicyclopyrone, and three effective sites of action. When used preemergence at full labeled rates, it helps farmers achieve 5 to 15 more bushels an acre versus any other corn herbicide.* Additionally, its long-lasting residual with built-in resistance management minimizes the weed seed bank for the next year’s crop.”

The value of preemergent herbicides cannot be overstated, noted Erin Burns, Ph.D., assistant professor and extension weed scientist at Michigan State University. “Everyone knows you have to use preemergent herbicides,” she said. “They need to be applied and activated in a timely manner. That's really the best way to make sure you get a clean crop and a good yield.”

For soybeans, the Syngenta portfolio provides a range of products that can be used across all traits that are available for planting in 2021.

“Farmers need herbicides that will be successful against spreading resistance,” said Pete Eure, herbicide technical lead for Syngenta. “Our robust portfolio of soybean herbicides enables growers to customize the application mix for their specific field conditions and trait platform.”

For preemergence management, Boundary® 6.5 EC, BroadAxe® XC and Prefix® herbicides feature multiple effective sites of action and long-lasting residual. Prefix also offers the flexibility for application before or after planting. To overlap residuals with a post-emergence application, Sequence® and Tavium® Plus VaporGrip® Technology herbicides provide effective knockdown and residual control of the toughest weeds, including pigweeds, giant ragweed and waterhemp. Tavium, the market’s first and only dicamba herbicide premix, recently received a registration extension by the EPA for use on dicamba-tolerant soybeans in 2021 and beyond.

“The worst thing you can do is get complacent,” cautioned Bill Johnson, Ph.D., professor of weed science at Purdue University. “Staying on top of weed control and herbicide resistance is all about making those subtle changes before you have to make drastic changes.”