Monday February 8 Ag News

 Online discussion set for agriculture educators

Agriculture educators in Nebraska are invited to “Seed Starting & School Growing Chit Chat.” This free, online event is hosted by the Center for Rural Affairs and University of Nebraska-Lincoln Extension.

This informal discussion is set for Wednesday, Feb. 17, from 10 to 11 a.m. The workshop will be facilitated by John Porter, urban agriculture program coordinator at Nebraska Extension.

“As we move into the spring season, participants are invited to share ideas and resources on activities they’re incorporating into their greenhouses and classrooms,” said Justin Carter, project associate for the Center for Rural Affairs. “Join us to learn more about what’s happening in school agriculture programs across the state.”

Students are invited to attend the event alongside agricultural educators.

Registration is required; sign up at cfra.org/events. For more information, contact Carter at justinc@cfra.org or 402.237.5082.

This event is funded by a U.S. Department of Agriculture Farm to School grant.



PVC February Meeting

The next meeting of the Platte Valley Cattlemen will be February 15, 2021, at Wunderlich’s.  This is the Ladies Night program, so bring your bride along for supper.

Social hour will start at 6:00pm. 143 Vintage (Samantha Wietfeld) and Backyard Boutique (Jennifer Dicke) are sponsoring the social hour. The meal will be at 7:00pm, and Columbus Sales Pavilion, Travis Bock, will sponsor the meal.

The speaker for the night will be Crystal Klug who will be speaking about the 2021 Cattlemen’s Ball. She will talk about activities and entertainment that is planned for the Ball on June 4th and 5th.

Nicole Saafeld will also be there during social hour with samples  of brewed beers, wine and liquor she has to offer at Cork & Barrel in Columbus.

They look forward to seeing you on Feb. 15, 2021 at Wunderlich’s in Columbus.



ICGA Welcomes Introduction of House Study Bill 185 to Expand Ethanol Opportunities

Today, the Iowa Corn Growers Association (ICGA) welcomes the introduction of HSB 185.  This bill, proposed by Governor Reynolds, creates more opportunities and markets within Iowa for corn-based ethanol including significant funding for biofuels infrastructure, as well as an E10 standard.

ICGA President Carl Jardon made the following statement.
“The Iowa Corn Growers Association (ICGA) thanks Governor Reynolds for her efforts on pushing ethanol into the future of Iowa giving all consumers the opportunity to select a clean-burning, cost-effective fuel at the pump,” said Carl Jardon, farmer from Randolph, Iowa. “Iowa is the nation’s leader in corn and ethanol production, and ICGA will continue to be proactive on this bill to see it through the finish line as it is a top priority for Iowa’s corn farmers.”



Iowa Pork Producers Association Being Led by Southwest Iowa Pig Farmer

Dennis Liljedahl, a second-generation pig farmer from Essex, is the new president of the Iowa Pork Producers Association (IPPA). The change in leadership followed the IPPA annual meeting on Jan. 26. Liljedahl, who had served as president-elect in 2020, replaces Mike Paustian of Walcott. Paustian now holds the past president position on the IPPA Board of Directors. Both will serve one-year terms in those roles.
 
Liljedahl has been a member of the IPPA Board of Directors since 2016, when he was elected by pig farmers in his area to represent them as the District 5 Director. He became a member of the executive committee in 2018. He has served on several IPPA committees and has been chairman of two - the public relations and research committees. He has also represented IPPA on two Iowa trade missions, one to China in 2017 and one to South Korea and Taiwan in 2019.
 
Other changes on the IPPA board include:
    a new president-elect, who is Kevin Rasmussen of Goldfield. He formerly represented District 2 on the board.
    Trish Cook, Winthrop, continues as the NE Region director and adds responsibilities as the vice president of resources.
    Kyler Oswald, Coon Rapids, is the new District 5 director. He was elected by those in his district to fill the position that Curtis Meier, Clarinda, held as an interim director for the past 10 months.
    Aaron Juergens, Carroll, was elected by those in Districts 5 and 6 as the SW Region director. He replaces Jason Hocker of Audubon, whose term had expired.
    Jeff Johnson, Dunkerton, will fill the Allied position role. The board of directors elected Johnson to fill the term previously held by Stan Cavner, Iowa Falls.
    Ben Schmaling, Prescott, will fill one of the two Stakeholder positions on the board. Schmaling replaces Jarrod Bakker of Dike, whose term had expired.
    An interim director for District 2 will be appointed by the board at their March meeting.

 The board oversees leadership and direction for all IPPA Pork Checkoff programs, public policy and general direction of the organization.



Land Sales Up 53% at Farmers National Company
Randy Dickhut, Senior Vice President - Real Estate Operations, Farmers National Company

The value of land sold by Farmers National Company from October, 2020 through January, 2021 was up 53% over the average of the past three years! The total number of acres of land sold by Farmers National Company agents increased 50% over the three year average!
 
There are a number of factors that propelled the increase in sales for the company during this four month period which is normally a peak sales time for farms. The first would be that Farmers National Company's extensive network of agents across the grain belt and southern plains brings local land market knowledge to the forefront when sellers need a trusted advisor to sell their property. The diversity of land sales handled by Farmers National Company including farms, ranches, recreational, timber, and development type properties, comes into play when sellers are looking for someone to market and sell their land.
 
Market factors are also propelling land sales. As previously mentioned, demand to own land of all types has increased since the onset of Covid-19. With the continued lower supply of land for sale on the market, increased demand is driving prices higher, especially for good cropland. Farmers who are currently more optimistic in their outlook along with investors seeking a safe, long term real estate investment are both helping propel the farmland market. Investor interest in timber land has increased too as well as individuals looking for a small tract of land for personal or recreational use.
 
Calls from buyers and sellers come in daily at Farmers National Company. Interest in land and ag land in particular grew in 2020. Looking ahead, if nothing unexpected happens to challenge the current land market, land prices will continue to firm up in 2021.



IPPA Delegates Support Swine Health and Marketing Proposals

The past year of living through COVID-19 has made everyone aware of what pork producers have known for some time. There are severe negative economic impacts and movement constraints that come with a foreign disease entering the U.S.
 
That's why county delegates at the Iowa Pork Producers Association (IPPA) annual meeting on Jan. 26 in Des Moines supported two resolutions that would build a more efficient system for managing swine health incidents.
 
The first was a resolution asking Iowa pig farmers to record and maintain their pig movement records with both the source premises and destination premises identification numbers (PIN or Prem ID) in a format that would be readily available to send to the Iowa state veterinarian in the event of a foreign animal disease (FAD) outbreak.
 
Quickly sharing that information with the state vet would help state and federal animal health officials make decisions about animal movement, a key to both containing the disease as well as keeping the food supply chain operational.
 
The second resolution dealing with swine health supported a two-year pilot project to develop and demonstrate a U.S. Swine Health Improvement Plan (USSHIP). USSHIP would initially focus on African swine fever and classical swine fever.
 
With delegate support, IPPA became the first organization to support the pilot program. The move also assured that pig farmers would have a seat at the table as the plan - which will use the 85-year-old National Poultry Improvement Plan as a model - for biosecurity, testing, and traceability is put together. The pilot program will involve discussions with farmers, packers, swine veterinarians, and state and federal animal health officials.
 
Swine health issues, especially as they are related to FADs, would have an immediate and possible long-term impact on U.S. pork export markets, which is where one-third of pork produced in the U.S. goes. In the event of a FAD, it's been shown time and again that countries around the world close their borders to products coming from countries reporting the FAD.
 
County delegates also gave their support to the Chicago Mercantile Exchange (CME) pork cutout contract that was launched in November 2020. The pork carcass cutout estimates the wholesale value of meat in a hog. As another marketing tool, the delegates supported that IPPA, along with the National Pork Board and the National Pork Producers Council work with CME to provide education on the contract for farmers.
 
The fourth action taken by delegates was to delay increasing the Strategic Investment Program (SIP) rate. SIP is a voluntary program and is completely separate from the Pork Checkoff. SIP supports non-checkoff programs at both the state and national level.
 
Last year, IPPA members voted to increase the SIP rate from 10 cents per $100 of value per hog marketed to 20 cents per $100 of value, and to have that go into place on July 1, 2021. The resolution passed this year would delay that increase to July 1, 2022.
 
The SIP proposal, as well as the one to support educational efforts on the CME pork cutout contract, have both been forwarded to delegates that will attend the National Pork Forum in March.



Man Sentenced to Prison for Grain Blending Scheme

A former manager of a grain cooperative in Sioux Center, Iowa who directed employees to blend oats into soybeans has been sentenced to three months in federal prison.

60-year-old Calvin Diehl of Aberdeen South Dakota received the prison term after a June 9, 2020 guilty plea to one count of conspiracy to defraud the United States.

In a plea agreement, Diehl admitted he was the Assistant General Manager at a federally licensed grain warehouse that is headquartered in Sioux Center.

In July 2015, Diehl said he agreed with others to defraud the U.S. government.

The fraud involved blending lower value oats into soybeans and then selling the mixture as soybeans. During the fraud, the individuals involved also made false statements and executed false certificates to USDA inspectors, layered soybeans on top of oats in both storage bins and trucks to deceive USDA inspectors and customers about the quality and quantity of the grain, and made false entries and adjustments in reports provided to the grain warehouse’s bank.

In March 2017, one of Diehl’s subordinates instructed a warehouse manager in Worthing, South Dakota, to blend more oats with soybeans. As a result, approximately 30 truckloads of what were supposed to be soybeans were “spiked” with oats. After the customer happened to discover the badly “slugged” or “spiked” loads, one of the customer’s managers called Diehl and told him to stop blending oats into soybeans.

The manager warned Diehl that “someone can go to jail for this.” Diehl feigned surprise, apologized, and falsely promised that the practice would not happen in the future.

However, Diehl continued to blend oats into soybeans and sell them to the same customer.

In late March 2017, the USDA conducted a pre-planned inspection of the cooperative. During the inspection, the cooperative’s Sanborn, Iowa location manager called Diehl and stated that he had oats visible because he was mixing oats with soybeans in open view.

Diehl instructed the Sanborn location manager to cover up the oats by putting soybeans on top of the oats in order to hide the oats from the USDA inspectors.

After learning of the conspiracy, the USDA conducted a search of grain bins at the cooperative’s various locations in Iowa and South Dakota. Of the estimated 87,996 bushels of grain in the bins at these locations, the bins actually contained only 34,354 bushels of soybeans even though all of these bins had been certified as soybeans.



2020 Pork Exports Shatter Previous Records; December Beef Exports Outstanding

U.S. pork exports reached nearly 3 million metric tons (mt) in 2020, topping the 2019 record by 11%, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Pork export value also climbed 11% to a record $7.71 billion. Exports set new annual records in China/Hong Kong, Central America, Vietnam and Chile, and achieved strong fourth quarter growth in Japan and Mexico.

U.S. beef exports finished 2020 lower year-over-year, falling 5% in both volume (1.25 million mt) and value ($7.65 billion). But beef exports finished the year with very strong momentum, with fourth quarter volume up 4.5% from 2019 and posting one of the best months on record in December. Beef exports to China were record-large in 2020 and a new volume record was also achieved in Taiwan.

"Obviously the surge in demand from China, especially in the first half of 2020, was a driving force behind the record performance for U.S. pork exports," said USMEF President and CEO Dan Halstrom. "But China was not the only success story in 2020, as exports achieved growth in a broad range of markets. Diversifying export markets is a top priority for USMEF and the U.S. industry, and that strategy paid dividends - especially in the fourth quarter, when exports to China/Hong Kong were down 9% from 2019 but shipments to the rest of the world nearly offset that slowdown."

Beef exports were heavily impacted by foodservice restrictions in many major markets but trended higher late in the year, bolstered by very strong retail and holiday demand.

"Consumers across the world responded to the COVID-19 pandemic by seeking high-quality products they could enjoy at home, and U.S. beef and pork definitely met this need," Halstrom said. "We expect these retail and home-delivery demand trends to continue even as sit-down restaurant dining recovers, creating robust opportunities for U.S. red meat export growth."

December pork exports totaled 259,654 mt, down 8% from the very large year-ago volume, with value down 10% to $687.2 million. December muscle cut exports were also down 8% at 219,224 mt, valued at $590.2 million (down 11%). For the full year, pork muscle cut exports were record-large at 2.51 million mt, up 15% from 2019, valued at a record $6.67 billion (up 12%).

December beef exports totaled 119,892 mt, up 8% from December 2019 and the largest in nearly 10 years. Export value was $744 million, up 9% from a year ago and the second highest total on record. December exports of beef muscle cuts were the second largest ever at 93,941 mt, climbing 11% year-over-year in both volume and value ($659.8 million). For 2020, beef muscle cut exports were down 2% year-over-year at 976,953 mt and fell 5% in value to $6.77 billion.

U.S. lamb exports reached a record 20,045 mt in 2020, up 27% year-over-year, though export value fell 9% to $23.8 million. Export growth was led by leading market Mexico, where volume climbed to 18,927 mt (up 38%) valued at $17.4 million (up 25%).



CATTLEMEN’S BEEF BOARD ELECTS NEW OFFICERS AT 2021 WINTER MEETINGS

Cattle producers Hugh Sanburg, Norman Voyles, Jr. and Jimmy Taylor are the new leaders of the Cattlemen’s Beef Promotion & Research Board (CBB). This officer team is responsible for guiding the national Beef Checkoff throughout 2021.

Sanburg, Voyles and Taylor were elected by their fellow Beef Board members during their 2021 Winter Meetings, held virtually this year. Sanburg, the 2020 vice chair, will now serve as the CBB’s chair, while Voyles will transition from his role as the 2020 secretary-treasurer to become the 2021 vice chair. Taylor is the newest member of the officer team, taking on Voyles’s former responsibilities as secretary-treasurer.

2021 Chair Hugh Sanburg hails from Eckert, Colo., where he and his brother are managing partners of their primarily horned Hereford cow-calf operation, accompanied by a Registered Hereford operation to complement the commercial herd. Sanburg graduated from Colorado School of Mines with a degree in mining engineering in 1983 before moving back to the home ranch in Western Colorado. For the past 30-plus years, Sanburg has been an active member of the Colorado Farm Bureau, serving on various boards. He is also a member of the Colorado Cattlemen’s Association and is a past chair of the Gunnison Basin Roundtable. In 2020, Sanburg received Colorado Farm Bureau’s Service to Ag Award.

“As I begin my tenure as CBB chair, the beef industry continues to face many challenges,” Sanburg said. “2020 was certainly a difficult year for many beef producers, but I’m optimistic 2021 holds better days for all of us. The CBB is a group of everyday producers who take time away from their operations, and in the coming year, we will do our absolute best to advance the beef industry, make informed decisions and encourage Checkoff contractors to execute programs and initiatives that accomplish our primary goal – driving demand for beef.”

Vice Chair Norman Voyles, Jr. owns and operates a seventh-generation grain and livestock farm near Martinsville, Ind. with his brother Jim and son Kyle. Voyles received a bachelor’s degree in animal science from Purdue University and a master’s degree in ruminant nutrition from the University of Nebraska. Voyles is a member of the Morgan County (Ind.) Beef Cattle Association and the Indiana Cattlemen’s Association. He’s a member of the Indiana Farm Bureau and a past member of the Farm Service Agency board of directors and the Morgan County Fair board.

Secretary-Treasurer Jimmy Taylor and his wife Tracy run a commercial Angus herd near Cheyenne, Oklahoma consisting of approximately 600 females on 12,000 acres. Their ranching efforts have earned them the 2011 Certified Angus Beef Commitment to Excellence Award and the 2013 Oklahoma Angus Association Commercial Breeder of the Year. The use of artificial insemination, proper nutrition, genomics and other new technologies play a large role in obtaining the operation’s goal: to create a good eating experience for the consumer. Taylor has also served on several local and state boards.

“We’re all very pleased to once again have such a strong leadership team to guide the CBB throughout the coming year,” said Greg Hanes, CEO of the Cattlemen’s Beef Board. “These gentlemen have given so much time and energy to the beef industry over the years, and their experience as both leaders and cattle producers will serve the CBB well. Hugh, Norm and Jimmy fully understand the beef industry’s current challenges, as well as the many opportunities, and I know they will use their knowledge and expertise to help the CBB and the Beef Checkoff reach new levels of success in 2021.”

To learn more about the Beef Checkoff and its programs, including promotion, research, foreign marketing, industry information, consumer information and safety, visit DrivingDemandForBeef.com.



ACE Supports Bipartisan Legislation to Expand Availability of Higher Ethanol Blends

Today, U.S. Senators Amy Klobuchar (D-Minn) and Joni Ernst (R-Iowa) reintroduced The Renewable Fuel Infrastructure Investment and Market Expansion Act, bipartisan legislation to create a renewable fuel infrastructure grant program at the United States Department of Agriculture and streamline regulatory requirements to help fuel retailers sell higher blends of ethanol.

Specifically, the legislation would authorize $500 million over five years for USDA biofuel infrastructure grants and direct the Environmental Protection Agency to finalize a proposed rule to repeal E15 labeling requirements. The bill would also direct EPA to finalize provisions from the same proposed rule to allow certain existing Underground Storage Tanks to store higher blends of ethanol.

American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement of support:

“Senators Klobuchar and Ernst are demonstrating the kind of bipartisan leadership necessary to ensure biofuels play a leading role in helping the U.S. achieve net-zero emissions by midcentury. While electric vehicles (EVs) are getting a lot of attention lately, experts conclude EVs alone will fail to reach President Biden’s goal of net-zero emissions in the U.S. by 2050, and that increased use of biofuels will be required to help address the emissions gap. A recent study by Harvard validates what ACE has been saying for years; today’s corn ethanol is nearly 50 percent cleaner than gasoline. This vital legislation would ensure infrastructure parity for biofuels and EVs and help ethanol continue to be part of the solution to climate change.”



RFA Thanks Senators for Efforts to Expand Ethanol Infrastructure

The Renewable Fuels Association today thanked Sens. Amy Klobuchar (D-MN) and Joni Ernst (R-IA) for reintroducing bipartisan legislation that would create a renewable fuel infrastructure grant program and ease certain restrictions that currently discourage retailers from offering cleaner, greener ethanol blends to consumers.
 
“We thank Senators Klobuchar and Ernst for their determined efforts to drive investment in our nation’s renewable fuels infrastructure,” said RFA President and CEO Geoff Cooper. “If enacted, this legislation would greatly expand the availability of low-carbon renewable fuels like ethanol in the marketplace, resulting in cleaner air, lower fuel prices and a more vibrant rural economy. We know retailers want to offer smarter fuel options to their customers, but antiquated regulatory burdens often prevent them from moving ahead. This legislation would ensure that overly restrictive provisions are streamlined or removed, allowing small businesses across the nation to provide cleaner and more affordable options to American drivers.”
 
The Renewable Fuel Infrastructure Investment and Market Expansion Act would authorize $500 million over 5 years for infrastructure grants for fuel retailers. The bill also directs EPA to finalize a proposed rule to repeal pump labeling requirements that confuse and deter drivers from using E15, a blend of gasoline with 15 percent ethanol. Finally, the legislation directs EPA to finalize provisions from the same proposed rule to allow certain existing underground storage tanks to store higher blends of ethanol.



RFA Releases Statistical Reports on 2020 Ethanol, Distillers Grains Exports

The Renewable Fuels Association today released two reports summarizing 2020 U.S. ethanol and distillers grains export and import data. These annual reports provide industry advocates, policymakers, the media and the general public with the latest information on the important role U.S. ethanol and distillers grains play on the world stage.

“Exports continued to be a major demand driver for the U.S. ethanol industry in 2020, even as producers coped with the impacts of a global pandemic and ongoing trade wars,” said RFA President and CEO Geoff Cooper. “As these reports show, the value of our industry’s exports approached $5 billion in 2020, making a significant contribution our nation’s balance of trade and underscoring the growing worldwide need for low-carbon, high-octane fuel and high-protein animal feed. U.S. ethanol producers should be proud of the positive impact they had on the lives of millions of consumers around the globe in 2020.”

The export/import trade summary report on ethanol provides annual and monthly data on U.S. ethanol exports, highlighting the fact that more than 1.334 billion gallons—10 percent of the ethanol produced in the United States—were exported in 2020. While this is 9 percent lower than 2019, it remains the fourth largest export volume in history. This ethanol, valued at $2.33 billion, was shipped to 90 countries on six continents. Canada was the top export destination, taking in nearly a quarter of U.S. ethanol exports, followed by Brazil and India.

The United States brought in less than 200 million gallons of ethanol imports, meaning the industry remained a net exporter by a large margin in 2020. Maps depicting the leading ports of entry and departure for U.S. ethanol imports and exports are offered in the reports, as are figures showing the annual economic value of U.S. ethanol exports.

The second report released today covers U.S. exports of distillers grains, a high-protein co-product of dry mill ethanol production used in livestock and poultry feed, which totaled 10.958 million metric tons in 2020, a slight improvement on 2019 and the seventh straight year these exports exceeded 10 million metric tons. A record high share of total U.S. distillers grains production—38 percent—was  exported in 2020. Mexico remained the top destination for U.S. distillers grains, representing 16 percent of total shipments, followed by Vietnam and South Korea. U.S. distillers grains exports had an aggregate value of $2.33 billion in 2020, the fifth highest on record.



Klobuchar Introduces Sweeping Bill to Promote Competition and Improve Antitrust Enforcement

U.S. Senator Amy Klobuchar (D-MN), the lead Democrat on the Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, introduced sweeping new legislation today to reinvigorate America’s antitrust laws and restore competition to American markets. The Competition and Antitrust Law Enforcement Reform Act will give federal enforcers the resources they need to do their jobs, strengthen prohibitions on anticompetitive conduct and mergers, and make additional reforms to improve enforcement.

“Competition and effective antitrust enforcement are critical to protecting workers and consumers, spurring innovation, and promoting economic equity. While the United States once had some of the most effective antitrust laws in the world, our economy today faces a massive competition problem. We can no longer sweep this issue under the rug and hope our existing laws are adequate,” said Senator Klobuchar. “The Competition and Antitrust Law Enforcement Reform Act is the first step to overhauling and modernizing our laws so we can effectively promote competition and protect American consumers.”

This bill is cosponsored by Judiciary Subcommittee on Antitrust and Commerce Committee members Richard Blumenthal (D-CT), Cory Booker (D-NJ), Ed Markey (D-MA), and Brian Schatz (D-HI).

Many industries are consolidating as large mergers and acquisitions increase and big companies buy out upstart rivals before they can become a competitive threat. Harmful exclusionary practices by dominant companies – such as refusals to deal with rivals, restrictive contracting, and predatory pricing – squelch competition. U.S. antitrust law enforcement against powerful firms has lagged efforts in other developed countries, particularly when it comes to enforcement against the dominant digital platforms and other large corporations. To remedy these longstanding issues, the Competition and Antitrust Law Enforcement Reform Act will:

1. Increase Enforcement Resources
For years, enforcement budgets at the Justice Department’s Antitrust Division and Federal Trade Commission have failed to keep pace with the growth of the economy, the steady increase in merger filings, and increasing demands on the agency's resources. To enable the agencies to fulfill their missions and protect competition by bringing enforcement actions against the richest, most sophisticated companies in the world, this bill would authorize increases to each agency’s annual budget.

2. Strengthen Prohibitions Against Anticompetitive Mergers
The bill would restore the original intent of Section 7 of the Clayton Act, which was designed to stop anticompetitive mergers in order to address competitive problems in their “incipiency” before they ripened and caused harm. As the law stands today due to court decisions, enforcers can block only the most egregious acquisitions, which has allowed many harmful mergers to escape scrutiny. To remedy this, the Competition and Antitrust Law Enforcement Reform Act will:
-    Update the legal standard for permissible mergers. The bill amends the Clayton Act to forbid mergers that “create an appreciable risk of materially lessening competition” rather than mergers that “substantially lessen competition,” where “materially” is defined as “more than a de minimus amount.” By adding a risk-based standard and clarifying the amount of likely harm the government must prove, enforcers can more effectively stop anticompetitive mergers that currently slip through the cracks. The bill also clarifies that mergers that create a monopsony (the power to unfairly lower the prices a company it pays or wages it offers because of lack of competition among buyers or employers) violate the statute.
-    Shift the burden to the merging parties to prove their merger will not violate the law. Certain categories of mergers pose significant risks to competition, but are still difficult and costly for the government to challenge in court. For those types of mergers, the bill shifts the legal burden from the government to the merging companies, which would have to prove that their mergers do not create an appreciable risk of materially lessening competition or tend to create a monopoly or monopsony. These categories include:
-        Mergers that significantly increase market concentration
-        Acquisitions of competitors or nascent competitors by a dominant firm (defined a 50% market share or possession of significant market power)
-        Mega-mergers valued at more than $5 billion

3. Prevent Harmful Dominant Firm Conduct
Decades of flawed court decisions have weakened the effectiveness of Section 2 of the Sherman Antitrust Act to prevent anticompetitive conduct by dominant companies. The bill creates a new provision under the Clayton Act to prohibit “exclusionary conduct” (conduct that materially disadvantages competitors or limits their opportunity to compete) that presents an “appreciable risk of harming competition.”

4. The legislation would establish a new, independent FTC division to conduct market studies and merger retrospectives.

5. Implement Additional Reforms to Enhance Antitrust Enforcement
The Competition and Antitrust Law Enforcement Reform Act will also implement a series of reforms to seek civil fines for antitrust violations, study the effect of past mergers, strengthen whistleblower protections, and more.



Fed Cattle and Feeder Cattle Divergence
Stephen R. Koontz, Dept of Ag and Resource Economics, Colorado State University

The current outlook communications for the cattle and beef markets in 2021 are commonly optimistic –bullish. The underlying market fundamentals support this position. On feed number are currently high and will moderate through the remainder of the year with smaller placements and smaller calf numbers. Further, the currently very large carcass weights will shrink into the spring as winter weather has its impact. Similar optimistism is often offered for feeder cattle and calves but I believe this is a tenuous perspective. Rather, I believe cow-calf producers should look hard at Livestock Revenue Protection (LRP) insurance. My outlook communications discussed to potential for returning to normal seasonal patterns and opportunities this year. For cow-calf producers that involves diversifying and making some sales in the spring and early summer with fed cattle and beef price rallies. I am concerned that this year may playout more like last year. In 2020, selling opportunities evaporated through March. If the current changes to feed costs persists then we may be in for a repeat.

The February WASDE report will be released this week and the first look at USDA grain acreage forecasts will be offered at the Agricultural Outlook Forum at the end of next week. This information will update us on the tightness of corn and soybean stocks and possible acreage relief with this crop year. Regardless, stocks are considerably tighter than what was anticipated as of last fall. And even with the substantial increases in corn and soybean futures prices for nearby contracts the current corn basis across the central and southern plains remains strong – the cash activity and price levels have followed the futures rally. In this setting, these increases are not temporary but rather permanent. And permanent for cattle feeding cost-of-gains. Even crude oil is participating with the March contract – the contract that was negative in 2020 – rallying from the low-$40s to the mid-$50s.

Bullish moves for fed cattle are in the works but those for feeder cattle and calves are far more limited. What do the technicals say? I believe the technicals will reveal first to market watchers any slowing or stopping of the changes to feed costs. And I see none currently.

Grains first: corn and soybean contracts all show multiple and strong uptrends in place. Soybeans showed a 5-day retreat to the steepest trend line in January. That trend holds and holds across the contract spectrum. It holds for contracts of the current crop year and holds for contracts of the next harvest. The picture is the same for corn with the exception that the retreat to the trend line – which held – was 7 days. New crop beans are $11.60 and new crop corn is $4.50. This feed cost perspective and the cattle supply picture is very different from the prior three years. And these grain markets are offering no sell signals.



Thompson Statement on Agriculture Democrats Release of Partisan Reconciliation Measure
 
Today, House Agriculture Committee Republican Leader Glenn “GT” Thompson (PA-15) issued the following statement after Democrats released the Agriculture Committee’s portion of the FY21 budget reconciliation bill:

"Democrats unveiled their $16 billion bill which was drafted behind closed doors, placing secrecy over solutions. The package is neither timely, nor targeted, and will fall devastatingly short of delivering direct relief for the agriculture industry and farm families. I implore my colleagues across the aisle to work with us to more thoroughly review resources and needs to better provide support.”



Chairman Scott Announces House Agriculture Subcommittee Chairs for the 117th Congress

Today, following the House Agriculture Committee’s Democratic Caucus organizational meeting, Chairman David Scott of Georgia announced the election of the Chairs of the Committee’s six Subcommittees:
    Jim Costa of California will Chair the Subcommittee on Livestock and Foreign Agriculture
    Abigail Spanberger of Virginia will Chair the Subcommittee on Conservation and Forestry
    Jahana Hayes of Connecticut will Chair the Subcommittee on Nutrition, Oversight and Department Operations
    Antonio Delgado of New York will Chair the Subcommittee on Commodity Exchanges, Energy, and Credit
    Cheri Bustos of Illinois will Chair the Subcommittee on General Farm Commodities and Risk Management
    Stacey Plaskett of the Virgin Islands will Chair the Subcommittee on Biotechnology, Horticulture, and Research

“Each of these Members is well suited to take on the task of the very important issues facing their Subcommittees,” said Chairman Scott. “I look forward to working with each of them to continue advancing the work of the Committee and serving our consumers, food and fiber producers, and rural communities during this critical time.”



Ranch Group Files Opening Brief in RFID Case

Today in the Wyoming federal district court, Harriet Hageman, Senior Litigation Counsel for the New Civil Liberties Alliance, filed an opening brief related to R-CALF USA’s Federal Advisory Committee Act (FACA) lawsuit against the U.S. Department of Agriculture (USDA). In addition to R-CALF USA, Wyoming ranchers Tracy and Donna Hunt and South Dakota ranchers Kenny and Roxy Fox are plaintiffs in the case.

In April 2019, the USDA’s veterinary subagency, the Animal and Plant Health Inspection Service (APHIS), issued a mandate to U.S. cattle producers to use radio frequency identification (RFID) eartags on all adult cattle moved interstate beginning January 2023. The mandate included a requirement that cattle producers register their premises with the government.

R-CALF USA and the other rancher-plaintiffs sued on the grounds the mandate was unlawful and it undermined existing law that allows cattle producers to choose among various lower-cost technologies, including metal eartags, when moving cattle interstate. Just weeks after the lawsuit was filed, APHIS withdrew its mandate.

But the original case alleged that APHIS also violated another law, the Federal Advisory Committee Act (FACA), which requires federal agencies to follow certain protocols when establishing and utilizing advisory committees to ensure both government transparency and a balanced perspective among advisory committee members.

The opening brief addresses the plaintiffs’ FACA claims and contends that since late 2017, APHIS established and utilized two unlawful advisory committees to assist it in transitioning the U.S. cattle industry to exclusively use RFID eartags when moving adult cattle interstate, and to reduce cattle-producer opposition to the agency’s plan.  

The latest brief points out that defendants (USDA and APHIS) have never asserted that they followed lawful protocols and achieved balance on the advisory committees, but that they instead argue that they neither established nor utilized either the Cattle Traceability Working Group (CTWG), formed in late 2017; or its successor, the Producers Traceability Council (PTC), formed in early 2019.

The opening brief states that the defendants’ denials are disingenuous, citing to scores of emails, working papers, meeting minutes, news releases, and an APHIS strategy paper as evidence the agency both established the two advisory committees and then utilized them up to October of 2019, which was when the plaintiffs first filed their lawsuit against APHIS’s mandatory RFID plan.   

According to the opening brief, plaintiff Kenny Fox was invited to serve on the CTWG until several members complained the CTWG was unable to reach consensus to push forward with an RFID requirement. Consequently, the PTC was formed by excluding Fox and others who opposed a mandatory RFID system from its membership. Yet, the same APHIS officials who served on the CTWG continued to serve on the PTC, as did eartag manufacturing representatives and other RFID advocates.

R-CALF USA and the other plaintiffs are seeking an injunction from the court barring APHIS from using the advice and work products it received from the advisory committees as the agency forges ahead to deny cattle producers the choice to use various low-cost technologies as authorized in current law.