Sorry I've been away from the blog for a few days.... but here's some must-know agricultural news and information from the second half of last week.... take care, and good luck! -Chad
USDA Offers Disaster Assistance to Nebraska Farmers, Livestock Producers Impacted by Recent Winter Storms
The U.S. Department of Agriculture (USDA) provides technical and financial assistance to help Nebraska farmers and livestock producers recover from damages brought on by winter storms Uri and Viola. Agricultural producers are encouraged to contact their local USDA Service Center to learn about the programs available to help them recover from crop, land, infrastructure and livestock losses.
“The recent extreme cold and winter weather has been a challenge for farmers and ranchers in Nebraska,” said Timothy Divis, acting state executive director for USDA’s Farm Service Agency (FSA) in Nebraska. “We know some producers have experienced losses or other impacts. USDA offers disaster assistance programs that may be able to help.”
Disaster Assistance
USDA encourages farmers and ranchers to contact the FSA county office at the local USDA Service Center to apply for eligible programs and to learn which documents, such as farm records, herd inventory, receipts and pictures of damages or losses should be provided to help expedite assistance.
Producers who experience livestock deaths due to the winter storms may be eligible for the Livestock Indemnity Program. Meanwhile, the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program provides eligible producers with compensation for feed and grazing losses. For LIP and ELAP, producers will need to file a notice of loss for livestock and extra feed costs or feed losses within 30 days and honeybee losses within 15 days.
Additionally, eligible orchardists and nursery tree growers may be eligible for cost-share assistance through the Tree Assistance Program (TAP) to replant or rehabilitate eligible trees, bushes or vines lost during the winter storms. This complements Noninsured Crop Disaster Assistance Program (NAP) or crop insurance coverage, which covers the crop but not the plants or trees in all cases. For TAP, a program application must be filed within 90 days.
FSA also offers a variety of direct and guaranteed loans, including operating and emergency loans, to producers unable to secure commercial financing. Producers in counties with a primary or contiguous disaster designation may be eligible for low-interest emergency loans to help them recover from production and physical losses. Loans can help producers replace essential property, purchase inputs like livestock, equipment, feed and seed, cover family living expenses or refinance farm-related debts and other needs.
Risk Management
Producers who have risk protection through Federal Crop Insurance or FSA’s NAP should report crop damage to their crop insurance agent or FSA office. If they have crop insurance, producers should report crop damage to their agent within 72 hours of damage discovery and follow up in writing within 15 days. For NAP covered crops, a Notice of Loss (CCC-576) must be filed within 15 days of the loss becoming apparent, except for perishable crops, which should be reported within 72 hours.
“Crop insurance and other USDA risk management options are there to help producers manage risk because we never know what nature has in store for the future,” said Collin Olsen, director of RMA’s Regional Office that covers Nebraska. “The Approved Insurance Providers, loss adjusters and agents are experienced and well trained in handling these types of events.”
Conservation
The Emergency Conservation Program and Emergency Forest Restoration Program can assist landowners and forest stewards with financial and technical assistance to restore damaged farmland or forests.
More Information
On farmers.gov, the Disaster Assistance Discovery Tool, Disaster-at-a-Glance fact sheet, and Farm Loan Discovery Tool can help producers and landowners determine program or loan options. For assistance with a crop insurance claim, producers and landowners should contact their crop insurance agent. For FSA and NRCS programs, they should contact their local USDA Service Center.
Eastern Nebraska Producers Invited to Participate in Weather Ready Farms
The Weather Ready Farms Designation Program is currently searching for participants to engage in the expanded pilot of our program. The only qualification for participation is for the crop producer to reside in Eastern Nebraska.
The program will run from Monday, Nov. 1, 2021 to Tuesday, Oct. 31, 2023. Interested candidates must sign a participation verification letter before Friday, March 12, 2021. Participants will complete the four phases of the designation program to improve sustainability and weather resiliency on their farms. These steps include:
Self-Assessment: Participants complete a self-assessment to determine areas of vulnerabilities on the farm.
Education: Participants attend a variety of Nebraska Extension programs and partner events, where they learn about new research and ways to implement practices on the farm. Education includes experiences and resources on the following topics: climate literacy; management of soil, water, pests and crops; and disaster, emergency planning and preparedness.
Verification: Participants prioritize areas on the farm where they can implement new management strategies, and these practices are verified by a third-party provider.
Designation: Participants who have completed phases 1-3 receive the Weather Ready Farms designation.
Participants of the WRF designation program, will receive a participation stipend of $1,200 and $1,300 to put toward funding new weather-ready agriculture practices on their farms. Farms who complete our designation program will also receive weather ready designation status, as well as a homestead sign recognizing this status. Moreover, participation in the program will offer invaluable knowledge and allow participants to join a community of sustainable and weather ready farmers.
If interested in participating in WRF, please contact Candace Hulbert at candace.hulbert@unl.edu.
Nebraska Farm Bureau Backs “Right to Repair” Bill, Says Timely and Affordable Repair of Equipment Vital to Farmers
A legislative bill targeted to ensuring Nebraska’s farmers, ranchers, and independent repair technicians have access to information, diagnostic equipment, and parts to repair farm equipment and machinery has received support from the Nebraska Farm Bureau. LB 543 was introduced by Sen. Tom Brandt of Plymouth to address an ongoing issue of concern to farmers whereby farm equipment manufacturers have maintained exclusive control over equipment information and technology, in turn limiting farmers’ and ranchers’ ability to purchase information and tools necessary to repair their own equipment or turn to an independent third-party service technician for assistance.
“Production agriculture is a machinery and equipment intense business. It’s also a time-sensitive business subject to the whims of the weather and needs of livestock. Tractors must run when cattle need fed. Combines need to run during harvest when crops are fit. Our business is predicated on equipment working when it’s needed. Timely and cost-effective repair is vital to our members,” said Mark McHargue, Nebraska Farm Bureau president.
Nebraska Farm Bureau has been engaged in deliberations at the state and national levels with farm equipment manufacturers about addressing the “right to repair” issue through a private memorandum of understanding similar to ones utilized in the automobile industry, whereby vehicle owners and independent technicians can purchase information, diagnostic equipment, and parts needed for vehicle repairs from vehicle manufacturers.
“Nebraska Farm Bureau has a great appreciation for the role equipment manufacturers and their local dealers play in our business and our rural communities. They’re an important partner. With that in mind, our members want the same flexibility in farm equipment repair that’s available in the automobile industry,” said McHargue.
According to McHargue, a private agreement would be best for all parties involved and Nebraska Farm Bureau is open to continuing the discussions with the manufacturers.
“We believe LB 543 offers a solution to a long-standing concern if we’re unable to arrive at a non-legislative solution by working with the manufacturers. We’d prefer to have the memorandum of understanding, but this needs to be resolved quickly. Our support for LB 543 is real and we’ll support this bill until it passes, or we reach an agreement,” said McHargue.
McHargue also clarified where Farm Bureau stands in the broader “right to repair” conversations that expand into other industries and areas such as the right to modify equipment.
“To be clear, our interest is in making sure farmers and ranchers have the ability to purchase what they need at a reasonable rate to get their equipment up and running or have the option of turning to an independent technician. Farm Bureau is not seeking the right to modify farm equipment and we’re not interested in the broader “right to repair” discussions surrounding off-road vehicles or consumer electronics,” said McHargue.
NEBRASKA CROP VALUES
The value of Nebraska’s 2020 field and miscellaneous crops is forecast at $11.9 billion, according to the USDA’s National Agricultural Statistics Service. This is up 22% from 2019.
The value of corn production is expected to total $7.61 billion, up 21% from the previous marketing year. Nebraska’s corn price is projected to average $4.25 per bushel, up $0.73 from the last marketing year.
The value of soybean production is expected to total $3.18 billion, up 36% from the previous marketing year. Nebraska’s soybean price is projected to average $10.80 per bushel, up $2.53 from the last marketing year.
IOWA CROP VALUES
The production of Iowa’s field and miscellaneous crops was valued at $15.8 billion in 2020, according to the USDA, National Agricultural Statistics Service – Crop Values 2020 Summary. This was a 15% increase from 2019.
The value of corn for grain production totaled $9.87 billion, up 9% from the previous year. Iowa’s corn price averaged $4.30 per bushel, an increase of 80 cents from the last marketing year.
Up 29% from 2019, the value of soybean production was $5.48 billion. The average price increased $2.62 from the previous year to $11.10 per bushel.
Value of production also increased from 2019 to 2020 for alfalfa hay and oats.
The TRUTH About Animal Ag Emissions
William H. Rhea III, Nebraska Cattlemen President
It takes a community of people to bring beef from pasture to plate including farmers and ranchers, feedlot operators, livestock auction market owners, and packing plant workers. As a cattleman, I take great pride in being part of that community.
According to both the USDA and EPA’s own estimates, beef cattle production in the U.S. accounts for only 3.3% of total greenhouse emissions.i Transportation and electricity generation together make up 56%, by comparison.ii
It has been suggested that reducing beef consumption would make a significant reduction in greenhouse gasses. When in fact, cutting back on beef consumption does not impact environmental sustainability as much as some groups have led consumers to believe. Research published in the Proceedings of the National Academies of Sciences found if all livestock in the U.S. were eliminated and every American followed a vegan diet, greenhouse gas emissions would only be reduced by 2.6 percent, or 0.36 percent globally.
Despite the minimal reduction in U.S. greenhouse gas emissions, The Beef State would face serious consequences. Thousands of lost jobs, skyrocketing unemployment that would devastate Nebraska’s rural communities, and severe harm to the state budget given livestock’s $12 billion economic impact. Think less money for schools, roads, NRDs, health and human services, etc.
There has been significant progress in overall sustainability achieved by the U.S. cattle industry, and we are doing more with less than our forefathers. Compared to 1977, the U.S. today produces the same amount of beef with 33% fewer cattle. We are dedicated to continuously improving and becoming even more sustainable.
Cattle play an incredibly important role in our food system as upcyclers, which refers to their ability to consume human inedible forage and plant leftovers and turn it into high-quality protein.[i] [ii] In fact, 90% of what cattle eat is forage and plant leftovers that people can’t eat,iv and more than 40% of the land in the contiguous U.S. is pasture and rangeland that is too rocky, steep, and/or arid to support cultivated agriculture – yet this land can support cattle and protein upcycling. [iii]
Additionally, those who oppose eating beef likely have not considered that research is beginning to show how proper grazing management can actually sequester carbon in the soil and help reduce the impacts of climate change.vi Partnerships between groups like the Nebraska Cattlemen and Rainwater Basin Joint Venture are helping restore ecosystems and provide critical habitat for millions of migratory waterfowl, shorebirds, and other wildlife.
In the face of a growing global population, we need ruminant animals, like cattle, to help make more protein with fewer resources.iii History and well-established research consistently shows that science-based advancements and practical, balanced dietary patterns promote health and sustainability, not eliminating single foods, like beef.[iv] [v]
Everything we eat requires the use of natural resources like land, energy, and water—it is what we do with those resources that is most important. Today, beef is produced using fewer resources than ever before. But conservation is never complete; farmers and ranchers will continue to work hard to feed a growing population, while, at the same time, working to reduce water use, care for the land, and protect the environment.
[i] Council for Agricultural Science and Technology (CAST). 1999. Animal Agriculture and Global Food Supply. Task force report N. 135 July 1999, Department of Animal Science, University of California, Davis, CA, USA. Available at: http://agrienvarchive.ca/bioenergy/download/anag.pdf
[ii] National Academies of Sciences, Engineering, and Medicine. 2016. Nutrient Requirements of Beef Cattle: Eighth Revised Edition. Washington, DC: The National Academies Press. https://doi.org/10.17226/19014
[iii] USDA, Economic Research Service using data from the Major Land Use data series. Available at: https://www.ers.usda.gov/data-products/major-land-uses.aspx
[iv] Dietary Guidelines Advisory Committee. 2015. Scientific Report of the 2015 Dietary Guidelines Advisory Committee: Advisory Report to the Secretary of Health and Human Services and the Secretary of Agriculture. U.S. Department of Agriculture, Agricultural Research Service, Washington, DC. https://health.gov/dietaryguidelines/2015-scientific-report/PDFs/Scientific-Report-of-the-2015-Dietary-Guidelines-Advisory-Committee.pdf
[v] United States. Department of Health and Human Services., United States. Department of Agriculture., United States. Dietary Guidelines Advisory Committee. Dietary guidelines for Americans, 2015-2020. Eighth edition. ed. Washington, D.C.: U.S. Department of Health and Human Services and U.S. Department of Agriculture; 2015.
viMichigan State University and the Union of Concerned Scientists. 2018. “Impacts of soil carbon sequestration on life cycle greenhouse gas emissions in Midwestern USA beef finishing systems.” Available at https://www.sciencedirect.com/science/article/pii/S0308521X17310338
NEBRASKA STATE FAIR ADDS TWO NEW BOARD MEMBERS
The Nebraska State Fair added two new Board members to the State Fair Board. Governor Pete Ricketts appointed Tom Dinsdale of Grand Island to serve as the Grand Island representative on the Board. Tom Schellepper of Stanton was recently elected to the State Fair Board, as the District 3 representative, at the annual Nebraska Association of Fair Managers Annual Meeting.
Dinsdale is the owner of Dinsdale Automotive in Grand Island. His childhood days were spent on the farm near Palmer where he learned that hard work was a way that he could make a difference in life. Many hours were spent haying and feeding cattle. Most recently he served on the 1868 Foundation Board, Stuhr Museum Board, and President of the Fonner Park Board. Dinsdale Automotive is the Sponsor of the State Fair Beef Barn. Tom was recognized as the Grand Island Independent Man of the Year in 2010 for his considerable and consistent effort to give back to the community over the years. He brings that same enthusiasm to the State Fair Board where he is excited to help grow the Nebraska State Fair.
Schellpeper, a lifelong Stanton native, is extremely excited to be a member of the Nebraska State Fair Board. His father served as a State Fair Board member. Schellpeper’s term on the Stanton County Fair Board has spanned 15 years. He is Past President of the Nebraska Association of Fair Managers. Tom has grown up with the Nebraska State Fair and understands the Agricultural heritage of the Fair. His involvement with the family farm’s diversified livestock and grain operation allows him to bring great vision and excitement to the Nebraska State Fair Board.
NEBRASKA FEEDLOT LABOR AND MANAGEMENT SURVEY
The Department of Agricultural Economics at the University of Nebraska-Lincoln, Department of Animal Science at the University of Nebraska – Lincoln, and the Nebraska Cattlemen are conducting a survey of Nebraska feedyard managers regarding to general management practices in your feedyard.
Each year our departments and organizations field numerous calls regarding current management practices. These practices range from implant strategies to labor costs. Advice given on value added practices and implementation costs are primarily based upon this report. Adequate number of responses ensures that the information is accurate and useable. This survey has been done once every five years since 1995 and is a national flagship for management and labor costs.
Take the Survey Online
https://ssp.qualtrics.com/jfe/form/SV_7U37k6CfdtyQJDL?utm_source=Google&utm_medium=Email&utm_term=cattle%2C+feedlot%2C+labor%2C+management%2C+Nebraska&utm_content=&utm_campaign=Feedlot_Labor_Survey.
If you have any questions or comments about this study please contact Dr. Elliott Dennis at 402-472-2164 or by email at elliott.dennis@unl.edu.
Extension offering free online Quickbooks, Quicken training for ag producers
Two online courses from Nebraska Extension aim to equip farmers and ranchers with the skills and tools needed to improve financial record-keeping for their operations.
Self-paced, free video courses for Quicken and Quickbooks teach the basics of both financial management software programs, which allow users to track transactions, separate expenses, generate whole-farm budgets and more.
The courses have been produced by Nebraska Extension’s Farm and Ranch Management team and focus on the record-keeping needs of agricultural producers. Participants will learn how to input transactions, use categories, tags, memos and run common reports.
Registration for each course is available at farm.unl.edu/accounting.
This material is based upon work supported by USDA-NIFA under Award Number 2018-70027-28586.
Free Farm and Ag Law Clinics Set for March
Free legal and financial clinics are being offered for farmers and ranchers across the state in March 2021. The clinics are one-on-one meetings with an agricultural law attorney and an agricultural financial counselor. These are not group sessions, and they are confidential.
The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters. Here is an opportunity to obtain an independent, outside perspective on issues that may be affecting your farm or ranch.
COVID-19: For the time being, the clinics are being conducted as conference calls or as Zoom meetings. It is therefore possible to attend a clinic from any location in the state. In-person clinics are expected to resume in the near future, at which time locations will be announced.
Clinic Dates
Wednesday, March 3
Wednesday, March 10
Wednesday, March 17
Wednesday, March 24
Wednesday, March 31
To sign up for a free clinic or to get more information, call the Nebraska Farm Hotline at 1-800-464-0258. Funding for this work is provided by the Nebraska Department of Agriculture, and Legal Aid of Nebraska.
March BeefWatch Webinar Series
The BeefWatch Webinar series is designed to highlight management strategies in grazing, nutrition, reproduction, and economics to increase cow/calf and stocker production efficiency and profitability. Each session will feature industry experts and plenty of opportunity to interact to get your questions answered.
Each webinar is free and will begin at 8:00 PM Central Time.
Drought Management
Mar. 2: Preparing to Make Decisions During a Drought
Dr. Jay Parsons, University of Nebraska-Lincoln
Jay will discuss decision making and the importance of early planning. He will outline a process for being better prepared to make decisions in stressful situations, creating better alternatives, and avoiding common pitfalls.
Drought Management
Mar. 9: The Forecast is Hot and Dry - What are My Options?
Aaron Berger, Beef Educator, Nebraska Extension
Management options such as feeding, shipping and selling will be discussed along with their potential repercussions.
Drought Management
Mar. 16: Pre-During-Post Drought Management of Rangelands
Dr. Mitchell Stephenson, Panhandle Research and Extension Center
How do we prepare for a drought and manage our rangelands during and after? Mitch will walk us through trigger dates and how we can make decisions to manage our rangelands including how to use tools such as grass cast.
Drought Management
Mar. 23: Alternative Forage Options During a Drought
Dr. Jerry Volesky, West Central Research and Extension Center
What are some alternative forage sources during a drought? This presentation will review different annual forages and how they might be used to increase grazing capacity or provide extra hay. Grazing management of these forages will also be discussed.
Drought Management
Mar. 30: Stretching Forage to Meet Cow Requirements During a Drought
Dr. Travis Mulliniks, West Central Research and Extension Center
What do you need to consider when managing cows during a drought? Travis will discuss the importance of proper nutrition for the cow during a drought and how we can meet nutritional needs depending on forage availability. Register here.
Register and get more information here.... https://beef.unl.edu/beefwatch-webinar-series.
Nebraska Ethanol Board March 9 Board Meeting to Be Held in Lincoln
The Nebraska Ethanol Board will meet in Lincoln at 9 a.m. Tuesday, March 9. The meeting will be at Hyatt Place (600 Q Street). Agenda highlights include:
Fuel Retailer Update
E30 Demonstration Update
Nebraska Corn Board Update
Renewable Fuels Nebraska Update
Economic Impact Study
Marketing Programs
State and Federal Legislation
Ethanol Plant Reports
This agenda contains all items to come before the Board except those items of an emergency nature.
Statewide farm-to-school program proposed
February 24, 2021 - Sen. Tom Brandt
A Nebraska farm-to-school program would provide locally grown and minimally processed food to elementary and secondary school students under a proposal considered Feb. 23 by the Education Committee.
LB396, introduced by Sen. Tom Brandt of Plymouth, would require the state Department of Education to hire a coordinator to administer the program, which also could provide students with hands-on learning activities, such as farm visits, cooking demonstrations and school gardening and composting programs.
The coordinator would partner with public agencies and nonprofits on a public engagement campaign and build a communication network that links farmers and schools.
They also would encourage schools to develop and improve their nutrition plans using locally grown or processed food and provide technical assistance to school food services staff, farmers, processors and distributors regarding the demand for and availability of Nebraska food products.
Brandt said a statewide farm-to-school program would benefit local producers, improve the quality and quantity of local food served in Nebraska schools and teach students where their food comes from and how it is made.
“By providing a stable, reliable market for local produce,” he said, “farm-to-school enables Nebraska communities to start recapturing a portion of the 90 percent of our school food dollars that are currently leaving the state.”
Sarah Smith, local foods consultant and fresh fruit and vegetable program coordinator at the state Department of Education, testified in support of the bill on the department’s behalf. She said the department’s current farm-to-school programs are limited and that a statewide network would provide the structure needed to help more schools and farmers navigate the complex food procurement system.
“Nebraska can lead the nation in community health and well-being,” Smith said, “celebrating our agricultural heritage and cultural diversity, with farm-to-school as the vehicle.”
Marcus Urban testified in support of the bill on behalf of seven agricultural organizations. He said the lack of direct and consistent access to local farms prevents some large, urban school districts from participating more fully in current farm-to-school programs. A statewide coordinator would address that problem, Urban said.
“We especially appreciate that this bill promotes a farm-to-school model in both an economic and educational package that can be maximized in school districts and communities all across Nebraska,” he said.
Joan Ruskamp, who farms and feeds cattle with her husband near Dodge, also testified in support. For the past 15 years, she said, they have held tours for students at their farm as part of a Nebraska Farm Bureau program. Ruskamp said LB396 would introduce more students to the people who raise and grow their food and show them the variety of career opportunities in agriculture.
“In addition to providing a healthy diet,” she said, “we can benefit our school kids and families by introducing them to agriculture through more direct interaction with farmers and ranchers.”
Also in support was Nathan Beacom of the Center for Rural Affairs. Approximately 30 percent of Nebraska schools participate in current farm-to-school programs, he said, but they spend less than 20 percent of their food budgets on locally grown food.
Beacom suggested that LB396 could increase that amount if it also required the coordinator to study food supply chain obstacles.
“With more streamlined distribution, consistent supply and processing that could extend the life of foods,” he said, “the price point for local foods could be lowered, thereby making it easier for schools to purchase greater quantities of produce locally.”
No one testified in opposition to the bill and the committee took no immediate action on it.
Red Meat Production Down 3 Percent from 2020
Commercial red meat production for the United States totaled 4.80 billion pounds in January, down 3 percent from the 4.96 billion pounds produced in January 2020.
By State (million lbs. - % Jan '20
Nebraska .....: 677.9 95
Iowa ............: 776.0 97
Kansas .........: 499.9 96
Beef production, at 2.31 billion pounds, was 3 percent below the previous year. Cattle slaughter totaled 2.74 million head, down 5 percent from January 2020. The average live weight was up 24 pounds from the previous year, at 1,399 pounds.
Veal production totaled 4.6 million pounds, 28 percent below January a year ago. Calf slaughter totaled 32,300 head, 35 percent below January 2020. The average live weight was up 23 pounds from last year, at 247 pounds.
Pork production totaled 2.48 billion pounds, 3 percent below the previous year. Hog slaughter totaled 11.2 million head, 5 percent below January 2020. The average live weight was up 5 pounds from the previous year, at 295 pounds.
Lamb and mutton production, at 10.4 million pounds, was 12 percent below January 2020. Sheep slaughter totaled 161,800 head, 11 percent below last year. The average live weight was 129 pounds, down 1 pound from January a year ago.
Iowa delegation requests assistance for custom cattle feeders
The Iowa Cattlemen’s Association extends its thanks to Iowa’s congressional delegation for its swift action in supporting custom cattle feeders. We greatly appreciate the delegation for working in a bipartisan fashion to advance the priorities of Iowa’s beef business.
Earlier this year, the Iowa Cattlemen’s Association emphasized the need for additional coronavirus assistance after speaking with producer members and state Farm Service Agency officials. While we recognize the U.S. Department of Agriculture’s commitment to the cattle industry, more help is needed.
As a direct result of the coronavirus pandemic, Iowa custom cattle feeders suffered economic hardships. Their experiences over the past year are similar to challenges faced by swine and poultry contract growers, who are eligible to receive assistance through existing programming.
Senators Grassley and Ernst, Representatives Axne, Feenstra, Hinson, and Miller-Meeks on Wednesday sent a joint letter to Secretary of Agriculture Vilsack. The letter requests that USDA include custom cattle feeders in existing or forthcoming aid programs. Iowa Cattlemen’s Association CEO Matt Deppe says, "One of our top priorities over the past year has been working to ensure cattle producers receive adequate assistance to recover from COVID-19 losses. The united show of support from Iowa’s congressional delegation on this important issue is exactly what our producer members need.”
Iowa State University researchers study effects of cellulosic feedstocks for ethanol production
A new Iowa State University study considers an increase of growing cellulosic feedstocks for ethanol production and the effect it could have on land use and water quality, specifically nitrogen loss, in the Mississippi Atchafalaya River Basin.
Kelsie Ferin, a graduate student in agronomy, conducted a modeling study based on the Renewable Fuel Standard (RFS2) mandate which set a goal to include 16 billion gallons of cellulosic ethanol production into gasoline by 2022. To assess the impact of this mandate, she ran scenarios to predict how planting cellulosic feedstocks would have on the environment and the economy.
Ferin’s adviser, Andy VanLoocke, associate professor in agronomy, also took part in the research, which was published recently in the peer-reviewed journal, Environmental Science and Technology.
“The fundamental question is if we grew particular crops in the Mississippi River Basin, would we change the amount of nitrogen that we lose in the Gulf of Mexico?” VanLooke said.
Three scenarios were tested and analyzed for nitrogen loss: A baseline, which reflects ethanol production of 7.5 billion gallons of 100% corn grain-based ethanol produced prior to the renewable fuel standard; a mid-production scenario, producing 15 billion gallons of corn grain ethanol; and a high production example, producing 16 billion gallons of cellulosic ethanol using corn stover, miscanthus and switchgrass.
“The amount of ethanol production went from 7.5 billion gallons of corn grain ethanol in the baseline to 15 billion gallons of corn grain ethanol in the scenarios,” Ferin said. “Our modeling simulations resulted in the 15 billion gallons corn grain ethanol scenario having 8% greater nitrogen loss relative to the baseline. For the full corn grain and cellulosic ethanol scenario, it was between 16-17% more nitrogen loss.”
Miscanthus and switchgrass are perennial grasses capable of reducing nitrogen loss from soil and water when incorporated into the current landscape. However, this benefit is greater when these grasses are replacing active cropland (i.e. corn and soybean production area) rather than on idle cropland.
“Based on current markets, growing them on the active corn and soybean acres wouldn’t turn a profit based on the economic model,” VanLoocke said. “If we did plant the perennial grasses on active cropland, we would improve the water quality in our scenarios. It just didn’t make enough money to do so.”
A sensitivity study was also conducted where 100% of the cellulosic ethanol was produced with miscanthus and switchgrass – no corn stover. In this case, the economic model determined 68% would be planted on active cropland, resulting in a 10% decrease in nitrogen loss relative to the corn grain and cellulosic ethanol production scenario.
“There’s no mandate that says 100% [of cellulosic ethanol] will come from miscanthus or switchgrass. We just wanted to assess how big of an impact they could have on our current landscape,” Ferin said.
Environmentally speaking, it is better to plant miscanthus and switchgrass on active cropland. Economically speaking, Ferin said the research showed it is more profitable to use the active cropland for corn and soybeans.
Ferin and VanLoocke’s research was supported by the new Department of Energy Bioenergy Research Center - Center for Advanced Bioenergy and Bioproducts Innovation (CABBI), which focuses on increasing the value of bioenergy crops with a “plants as factories” approach.
Ferin and VanLoocke said if CABBI is successful, crops like miscanthus and switchgrass containing valuable oils, fatty acids and other bioproducts in their stems could be extracted and sold separately from the lower-value cellulosic biomass. There is potential to grow more cellulosic feedstocks if they can be utilized for products other than ethanol.
“There needs to be other innovations around cellulosic feedstocks to get over the economic hump,” VanLoocke said. “The future of cellulosic ethanol depends on innovations, like finding more value within the crops that we are growing so we can market to multiple markets and be more diverse.”
NCGA Leads Call for Farmer Participation in Paycheck Protection Program
The National Corn Growers Association (NCGA), along with K·Coe Isom, today led a coalition of 35 agriculture organizations urging Congress to work with the Small Business Administration (SBA) to ensure that farming partnerships and limited liability corporations (LLCs) are able to participate in the Paycheck Protection Program (PPP).
In a letter to the leaders of the Senate Committee on Small Business and Entrepreneurship, and the House Committee on Small Business, the organizations said it is critical for agricultural producers, many of whom have structured their operations as partnerships and LLCs, to receive PPP funding regardless of the tax structure.
“As you know, farming and ranching are capital-intensive operations often operating at a loss and with owners who frequently do not work for wages,” the organizations wrote.
Section 313 of The Economic Aid Act made changes to the initial eligibility requirements for PPP, recognizing the special circumstances of those working in agriculture and helping many farmers and ranchers participate in the program. Unfortunately, the SBA has since interpreted this language to exclude farm and ranch operations structured as partnerships and LLCs.
“We believe this interpretation is in error and is preventing many farm and ranch families from participating in the PPP,” the organizations wrote. “We ask that you clarify to SBA that Congress intended to include farm partnerships and LLCs in Section 313.”
Soybean Growers Approve 2021 Resolutions
Members of the American Soybean Association (ASA) have completed the organization’s annual resolutions process to set the tone and direction for policy advocacy in the weeks and months ahead.
As is typical with any “out with the old, in with the new” activity, the organization aims each year to build on sound existing resolutions by adapting where needed and supplementing with new resolutions to address emerging priorities. One such example of a soy priority on which the organization is focusing more this year is climate and conservation.
Kevin Scott, ASA president and soybean farmer from Valley Springs, South Dakota, said, “Throughout this year’s document we recognize the role that climate and conservation will play in policy discussions in 2021, from thoughtfully addressing development of public and private ecosystem services markets to promoting precision agriculture technology as a tool to improve environmental stewardship while providing economic returns for growers.”
Changes and additions for 2021 run the full gamut. Among the approvals are resolutions supporting:
• Trade Promotion Authority (TPA) reauthorization
• A sufficiently-funded Commodity Credit Corporation (CCC) account to ensure timely benefits to farmers
• A strong farm safety net and crop insurance program, including support for expanding double crop soybean coverage
• Federal efforts to boost precision ag technology availability and grower adoption
• Increased federal funding to provide conservation technical assistance to growers
• USDA’s Natural Resource Conservation Service’s definition of soil health
• Development of voluntary carbon markets that incentivize agricultural conservation
• Significant increases in rural infrastructure funding
• Changes to the traditional gas tax to reflect the increase in EVs/hybrids on the road to support the Federal Highway Trust Fund
• Identifying additional funding mechanisms for rural broadband investment and deployment
• Increased utilization of higher-blend biodiesel to lower emissions and improve air quality
• Reducing barriers and increasing access to improved genetics and crop protection tools that lead to improved environmental outcomes
The ASA resolutions process has been a monthlong series of input from state delegates, ASA board members and other farmer-leaders and staff who serve on ASA’s advocacy teams covering the various soy policy areas. Recommendations are funneled from state members into resolution subcommittees, which then hone the language that is finally voted on by delegates. The process is conducted in multiple stages to allow ample input, revisions, and improvements from ASA membership across the soy states and culminates in the final voting process, held this year on Feb. 25.
UK Announcement On Standardizing E10 Is Welcome News Amid Push To Cut Emissions And Meet Paris Commitments
Today, the U.S. Grains Council, Growth Energy and Renewable Fuels Association released a statement following the United Kingdom’s (UK) announcement to introduce a ten percent ethanol blend standard (E10) nationwide by September of this year:
“The United Kingdom’s introduction of an E10 ethanol blend comes amid a global push to decarbonize the transportation sector and reduce greenhouse gas emissions. This is a welcome announcement that will benefit the health of U.K. residents, create more jobs, and accelerate the country’s goal of a zero-emissions future. It is also another example of how biofuels like ethanol are being used to help countries achieve their climate targets. We look forward to the environmental benefits that E10 will bring not only to the U.K., but to decarbonization efforts across the world.”
In his announcement, U.K. Transport Secretary Grant Shapps emphasized how higher ethanol blends offer immediate environmental benefits. “There are steps we can take to reduce emissions from the millions of vehicles already on our roads – the small switch to E10 petrol will help drivers across the country reduce the environmental impact of every journey, as we build back greener,” he said.
Current gasoline blends in Britain contain no more than 5% ethanol (E5). The announcement noted that switching to E10 could cut transport carbon dioxide emissions by 750,000 tons per year – the equivalent of taking 350,000 cars off the road.
In 2018, the U.S. Grains Council, Growth Energy and the Renewable Fuels Association submitted comments as the U.K. Department of Transport was considering implementation of a nationwide E10 ethanol blend, sharing both the environmental and cost saving benefits of ethanol.
Land O’Lakes, Inc. reports strong annual results for 2020
Land O’Lakes, Inc. reported net sales of $13.9 billion and net earnings of $266 million for the year ending December 31, 2020, compared to net sales of $13.9 billion and net earnings of $207 million in 2019. Net Earnings improved $59.1 million compared to the prior year despite the economic challenges and volatile market conditions due to impacts of the global COVID-19 pandemic.
“While I’m proud of our performance, I am even more proud of the team that delivered it. In an evolving and difficult landscape, Land O’Lakes was able to perform,” said Beth Ford, president and CEO of Land O’Lakes, Inc. “We focused on growth in a challenging environment by standing up e-commerce across the business units as everyone moved online, developing revenue options for farmers and working to offset significant market declines.”
2020 earnings strength was driven by improved performance in our core Dairy Foods and Animal Nutrition businesses. Dairy Foods earnings were higher due to strong sales of our retail products including butters and spreads and our Kozy Shack product lines, which more than offset volume declines in Foodservice and the impacts of commodity market volatility.
Animal Nutrition earnings were also higher due to growth in all lifestyle species – animals like backyard flock and horse – and improved performance in Premix. Crop Inputs earnings were lower as Crop Protection margins were compressed due to unfavorable product mix driven by grower buying decisions and basic manufacturers lowering prices. Crop Inputs showed improved performance in both its Crop Nutrition and International businesses while leveraging its investment in digital sales platforms to help its network of brick-and-mortar retailers avoid service disruptions throughout the pandemic.
The company also worked to address issues that directly affected its members, their families, and the communities in which they live. Under its American Connection Project, Land O’Lakes partnered with its ag retail network to turn on their Wi-Fi to provide free, public access at a critical time during the onset of the pandemic. Other partner organizations joined in the effort, delivering over 2,800 Wi-Fi locations in 49 states. In addition, more than 140 organizations joined with Land O’Lakes in advocacy efforts to close the digital divide. This focus on digital connectivity also helps the company support and advance community vibrancy, strengthening the economies, healthcare, and educational access of less connected communities, both urban and rural.
Truterra, in combination with WinField United, delivered products and services to help growers be part of the climate change solution while maintaining profitable and productive acres. This included making decision-support technologies like the Truterra Insights Engine available to more farmers, on more acres, embedding more conservation agronomy experts with local ag retailers, and fostering the market conditions to drive demand for stewardship through unprecedented food company and conservation partnerships. In July 2020, Land O’Lakes announced a multi-year alliance with Microsoft that includes pioneering new innovations in agriculture and closing the digital divide, fueling enhanced technological solutions for our members and customers.
Interactive Advanced Education Modules Provides Cattle Producers with Targeted Online Learning on Biosecurity
NCBA’s Beef Quality Assurance program releases a new Beef Checkoff-funded tool to help cattle producers ensure they are prepared with a custom biosecurity plan.
To further support cattle producers across the country the Beef Checkoff-funded Beef Quality Assurance (BQA) program has released the first in a series of Advanced Education Modules. This initial module on biosecurity details the basics of disease transmission and prevention.
These resources were developed so that anyone who is involved in raising cattle – from the operation manager to personnel to family members – has the opportunity to understand how biosecurity principles are integrated into their farm or ranch and plan for continuous improvement in the future. Learners will walk through sections that build on each other, starting with basic principles of biosecurity and understanding its importance on the cattle operation. Interactive and real-world best practice examples are provided for a variety of topics such as new bull or replacement purchases and manure management to reduce feed contamination, among others.
As a part of the training, producers are able to fill out the Daily Biosecurity Plan for Disease prevention, another biosecurity tool recently released by BQA, and tailor the biosecurity information to their specific operation. Producers are then introduced to the USDA supported Secure Beef Supply to better understand the necessary biosecurity measures in the event of a foreign animal disease (FAD) outbreak and to prepare an enhanced biosecurity plan in preparation for such an event. Learners can compare details between the daily biosecurity plan and the enhanced biosecurity plan to view the changes they would need to address in the occurrence of an FAD outbreak.
“Introducing these advanced education modules has been a major goal of the BQA team,” said Dr. Julia Herman, Beef Cattle Specialist Veterinarian at NCBA. “With this Beef Checkoff-funded tool, beef cattle producers can enhance their biosecurity education, help train their teams, and continue to keep their cattle safe and healthy.”
For more information about BQA, to access the Advanced Education Biosecurity modules, or download the BQA Daily Biosecurity Plan, visit BQA.org.
By-Product Value and Importance to Fat Cattle Prices
Brenda Boetel, Department of Agricultural Economics, University of Wisconsin-River Falls
In 2020, the US exported $7.6 billion in beef and variety meat products (down 6% from 2019); variety meat exports to all partners accounted for 11.8% of that value, down from 12.4% in 2019. When the value for hides and all offal products is added, the total offal value plus hides accounted for 20.7% of the export value in 2020, down from 22% in 2019. Variety meats account for a significant percentage of the export value, so what value do these by-products add to the finished steer?
The Agricultural Marketing Service of the USDA reports the by-product drop value for steer. On February 23, 2021 the hide and offal value from a typical slaughter steer was estimated at $9.71 per live hundredweight and includes values for cattle hides, variety meats (i.e., cheeks, hearts, tripe, etc.) and tallow. This value equates to $135.94 for a 1400 lb. steer. This value has been increasing recently and is at a level last seen in May 2018.
Products that add the greatest value to the byproduct value reported by AMS are the hide, tallow, tongue, tripe, oxtail, and cheek meat. International destinations provide markets for products not typically consumed in the US. Japan and Mexico are the leading importers of US variety meats, importing $369 million and $228 million worth of variety meats in 2020. Japan is the leading importer of beef tongue, while Mexico leads in beef tripe. As their import levels of variety meats change, so does the value contribution of tongue and tripe change in the overall byproduct value calculation, which ultimately will impact the finished steer price.
Beef and beef by-products are typically produced in nearly fixed proportions; however, when packers experienced line disruption in 2020, many plants changed fabrication methods to keep more whole muscles/primals intact and keep less offal to maximize line speed. The decrease in beef and offal provided less opportunities for exports and by-product values decreased to $6.79 in May 2020. When these edible offal products are not exported, they will often go into rendering or into pet food and ultimately decrease the overall value of the finished steer.
With the continued recover from COVID disruptions, by-product production has mostly returned to pre-COVID levels; and given the relatively fixed pounds of by-products per 1,4000-pound steer, the by-product drop value contributions have been increasing due primarily to changes in demand. Beef exports are expected to be up almost 6% in 2021. As exports of beef and variety meats rises, additional support to the finished steer price is provided.
Ranch Group Responds to Ag Secretary’s Interest in COOL
In a letter sent today to Agriculture Secretary Tom Vilsack, R-CALF USA responded to statements made by Vilsack during his Senate confirmation hearing held earlier this month. Vilsack had then indicated an interest in revisiting country-of-origin labeling (COOL) for beef if it could be done without triggering the retaliatory tariffs authorized by the World Trade Organization (WTO) during Vilsack’s previous term as Agriculture Secretary.
In today’s letter, the group attached a proposed draft bill that Congress can use to require all beef sold in America to be labeled as to where the animal was born, raised, and harvested. Also attached is a summary that explains why the proposal should alleviate the concerns raised by the WTO regarding the old COOL law that Congress repealed after 2015.
The letter states the proposal would also accomplish what the old COOL law did, which was to eliminate the mislabeling of foreign beef products with a “Product of U.S.A.” label.
“Reinstating a functioning mandatory COOL law is vital to U.S. cattle producers who are presently without the means to build demand for their U.S. cattle and to U.S. consumers who desire to know from what country(s) their beef originates,” the letter adds.
New EIA Data Show U.S. Ethanol Volumes Fell in 2020 Due to the Pandemic
Year-end data released today by the U.S. Energy Information Administration (EIA) provides evidence of both the impact of the COVID-19 pandemic and the resilience of the ethanol industry. U.S. ethanol production fell to 13.93 billion gallons last year, down 1.85 bg, or 11.7%, from 2019. It was the lowest production level since 2013.
The data indicate that domestic ethanol consumption was 12.63 bg (13.2% below the 2019 level and the lowest since 2009). Gasoline consumption in the United States totaled 123.49 bg, down 13.5%.
The implied ethanol blend rate—the average content of ethanol in gasoline—rose slightly to a record 10.23%. On a monthly basis, the blend rate slumped to 9.05% in April as petroleum prices plummeted and the price of renewable identification numbers (RINs) remained subdued after more than two years in which large-scale exemptions from the Renewable Fuel Standard had been granted to refiners. However, by November and December, the blend rate rose to record highs of 10.78% and 10.81%, respectively, as petroleum prices rebounded and RIN prices began strengthening after the election and no further refinery exemptions had been granted during the year.
“While the COVID pandemic, Saudi-Russia oil price war, and trade disputes presented major marketplace obstacles throughout 2020, the U.S. ethanol industry showed its resilience and determination,” said RFA President and CEO Geoff Cooper. “Despite the drop in annual ethanol production and domestic blending, ethanol’s share of the gasoline pool strengthened at the end of the year as RIN prices continued to rebound and the RFS returned to the demand-driving force it was intended to be by Congress. Meanwhile, U.S. ethanol exports were relatively buoyant, especially when export barriers and the impact of the pandemic on global fuel consumption are considered.”
The EIA estimated fuel ethanol exports at 1.34 bg, a decline of 8.5%. Exports were fairly strong to start the year but then were affected by a combination of trade barriers and pandemic-related declines in fuel consumption in key markets.
Growing Exports of Poultry and Egg Products Delivers Value Back to Corn Farmers
Exports of U.S. corn-fed poultry and egg products are one key area of future demand that the Market Development Action Team (MDAT) at NCGA focuses on. The team has funded projects with the USA Poultry and Egg Export Council (USAPEEC), most recently including an economic study on the value of poultry exports to U.S. corn and updates to improved versions of buyer’s guides. The economic study found that poultry exports add $0.28 of value per bushel of corn, which is approximately $4.1 billion in revenue. The new and improved buyer guides for chicken, turkey, and eggs were digitized and updated, including a section on the value and sustainability of U.S. corn. These guides play a large role in securing value back to the U.S. corn grower as they are used at almost all of USAPEEC’s international trade and marketing activities.
The partnership with USAPEEC is one poised to enable success for both poultry producers and U.S. corn growers through the support of NCGA’s Market Development Action Team as well as various state commodity associations. The U.S. poultry industry consumes over 1.2 billion bushels of corn and is a key customer of U.S. corn.
“As we look toward opportunities to increase demand for corn, U.S. poultry and egg exports is one area we can count on. It’s important to support the work USAPEEC does to get U.S. corn-fed poultry and egg products onto families’ tables around the world,” said Bob Hemesath, chairman of the Market Development Action Team.
USAPEEC poultry and egg exports for 2020 were valued at approximately $4.4 billion, with broiler exports up 2 percent in value as compared to the previous year. Mexico remains the top U.S. broiler export market, followed by China, Taiwan, Cuba, Vietnam and Canada. Taiwan is a key market that has experienced record exports as of late, with the U.S. having 93 percent of market share. Vietnam is another area of great interest moving forward for USAPEEC.
“The USA Poultry & Egg Export Council (USAPEEC) is extremely grateful for the ongoing partnership that we have with NCGA,” said USAPEEC’s Chief Operating Officer, Greg Tyler. “Without their generous support, USAPEEC would not be able to carry out some of our vital programs around the globe. These programs are essential to the continued growth in exports for the industries we represent and, in turn, allow for increased production in the United States, which means more demand for high-quality feed grains.”
USAPEEC also markets U.S. turkey internationally. The majority of U.S. turkey exports go to Mexico, followed by China and Canada. Eggs exports were up 6percent in value as compared to the previous year. The top export markets for table and shell eggs are Mexico and Hong Kong, followed by Canada. Processed egg exports mainly go to Japan, followed by Mexico and Canada.
Moving forward, USAPEEC continues to monitor low and high path avian influenza outbreaks and resolve associated trade disruptions. China continues to be an area of opportunity, and South Korea is one of the most promising markets, which USAPEEC is hoping to be further enabled by a recent USDA study on semicarbazide residues levels. This research will be key to allowing more U.S. poultry plants to be relisted as approved for exporting to South Korea. South Africa is another country with opportunity as the U.S. quota continues to increase as consumption requirements of South Africans rise. Finally, India is a huge opportunity market that has recently opened. However, high tariffs continue to limit trade with India, and USAPEEC has made the case to negotiate a tariff reduction of implementation of a tariff-rate quota to USTR.
Casey’s and Feeding America® Join Forces to Help Fight Hunger Across the Heartland
One in six people could face hunger due to the ongoing economic fallout from COVID-19, including one in four children. As more neighbors in need turn to charitable food assistance for help, food banks across the nation are meeting the increased need.
Millions of meals are making their way into communities across Iowa and the other 15 states that Casey's calls home. Pictured: Michelle Book, CEO of Food Bank of Iowa, and Ena Williams, Chief Operating Officer of Casey's. (Photo: Business Wire)
Millions of meals are making their way into communities across Iowa and the other 15 states that Casey's calls home. Pictured: Michelle Book, CEO of Food Bank of Iowa, and Ena Williams, Chief Operating Officer of Casey's. (Photo: Business Wire)
That is why the Feeding America® network is proud to partner with Casey’s to help provide more meals to communities in need across the heartland. The Casey’s #HereforGood Hunger campaign helped provide more than 15 million meals* to children and families who may not know where they will find their next meal.
“The generosity of our guests and vendors paired with the passion from our team members resulted in an overwhelming result for this campaign. We are confident these 15 million meals are having a direct impact on the hunger experienced in our own backyard. But, the need continues and we encourage others to take action by donating to, or volunteering at, a local food bank,” said Ena Williams, Chief Operating Officer of Casey’s.
As part of Casey’s campaign, consumers were invited to round up their purchase at the register. In addition, when consumers purchased a Coca-Cola four-pack, $1 was donated to Feeding America. Casey’s campaign raised more than $1.5 million for 47 local food banks across its 16-state footprint, including Food Bank of Iowa.
“At Food Bank of Iowa, we are grateful for the support that Casey’s has provided,” said Michelle Book, president and CEO at Food Bank of Iowa. “In this time of need, we want every household to have food on their table and that is why Feeding America’s partnership with Casey’s is critical to help us reach more Iowans.”
The Feeding America network of food banks is responding every day to help children and families in need. In 2020, the network distributed more than 6 billion meals to communities across the country.
“Sadly, the pandemic has thrust even more of our neighbors into food insecurity. Feeding America is thankful to Casey’s for its generous support. This partnership helps us provide people with nourishing meals when they need them most,” said Claire Babineaux-Fontenot, CEO of Feeding America. To learn more about how to join Feeding America in the fight against hunger, visit www.feedingamerica.org.
*$1 helps to provide at least ten meals secured by Feeding America® on behalf of local member food banks.
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