Thursday March 18 Ag News

Rural Mainstreet Index Rockets to Record High: More Than Two-Thirds of Bankers Reported Expanding Local Economy
 
For the fifth time in the past six months, the Creighton University Rural Mainstreet Index (RMI) climbed above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the index increased to its highest level since launching the survey in January 2006.          

Overall: The overall index for March soared to a record high 71.9 from February’s solid 53.8. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

Approximately, 68.8% of bank CEOs reported that their local economy was expanding, while the remaining 31.2% indicated little or no growth.  

“Sharp gains in grain prices, federal farm support, and the Federal Reserve’s record-low interest rates have underpinned the Rural Mainstreet Economy. Only 3.1% of bank CEOs indicated economic conditions worsened from the previous month. Even so, current rural economic activity remains below pre-pandemic levels,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.  

Farming and ranching: For a sixth straight month, the farmland price index advanced above growth neutral. The March reading climbed to 71.9, its highest level since November 2012, and up from 60.0 in February. This is first time since 2013 that Creighton’s survey has recorded six straight months of farmland prices above growth neutral.

Bankers reported that approximately 12.3% of farmland sales were cash sales, which is down from 17.3% recorded in February 2020.

The March farm equipment-sales index rose to 63.5, its highest reading since February 2013, and up from 62.7 in February. After 86 straight months of readings below growth neutral, farm equipment bounced into growth territory for the last four months.    

Below are the state reports:
Nebraska: The Nebraska RMI for March soared o 78.8 from February’s 58.4. The state’s farmland-price index climbed to 76.1 from last month’s 62.3. Nebraska’s new-hiring index advanced to 78.4 from 55.2 in February. Compared to pre-COVID-19levels, U.S. Bureau of Labor Statistics, non-seasonally adjusted data, indicate that Nebraska’s Rural Mainstreet economy has lost 3,400 nonfarm jobs, or 1.2%, of its nonfarm employment. Jim Stanosheck, CEO of State Bank of Odell in Odell reported, “A farm sale last week of 700 acres saw dry land farm sell between $3,750 and $5,575 an acre.

Iowa: The March RMI for Iowa bounced to 71.6 from February’s 54.0. Iowa’s farmland-price index rose to 72.4 from 60.1 in February. Iowa’s new-hiring index for March advanced to 72.7 from 53.0 in Iowa. Compared to pre-COVID-19 levels, U.S. Bureau of Labor Statistics, non-seasonally adjusted data, indicate that Iowa’s Rural Mainstreet economy has lost 25,800 nonfarm jobs, or 3.9%, of its nonfarm employment.

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

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005 and launched in January 2006.



APPEARA supports ag, Northeast Community College with donation to Nexus project

A five generation, multi-state business headquartered in Norfolk has made a financial investment in the future of agriculture, in Northeast Community College and in the economy of the region.

Bob Dudley, owner and president, said many of APPEARA’s customers are ag-based.

“From implement dealerships, ethanol plants, fertilizer and seed dealers, etc., we service a lot of customers from the ag industry,” Dudley said. “So, anything that Northeast can do to perpetuate ag education is important to all of us here in Nebraska, and especially APPEARA when we rely so much on the ag industry.”

“APPEARA’s experience bears out what a University of Nebraska study found,” said Dr. Tracy Kruse, Northeast vice president of development and external affairs and executive director of the Northeast Foundation. “In Nebraska, one of every four jobs are related to agriculture and in the northeast region, that is one of every two jobs.”

Dudley has announced that APPEARA will invest $25,000 in the Nexus project at Northeast, an update of ag facilities that includes a veterinary technology clinic and classroom building, a combined farm operations and large animal handling building, a feedlot and lagoon and other farm structures.

Dudley called Northeast an asset to the community and region.

“Norfolk is fortunate to have Northeast in our community,” he said, “and we want to do all we can to make sure the College is the best it can be.”

“APPEARA’s support will help provide the latest technology and a modern learning environment for Northeast’s 350 ag students,” Kruse said. “We appreciate their investment in this vital part of the regional economy.”

APPEARA was started in 1916 by Bob Dudley’s great grandfather. The company now specializes in uniform rental, linen services, dust control and janitorial supplies. APPEARA has 75 employees and provides service in Nebraska, Iowa, South Dakota and Minnesota.

The new ag facilities currently under construction near the Chuck M. Pohlman Ag Complex, 2300 E. Benjamin Ave., will replace a 100-year-old repurposed dairy barn. Construction on the project began in April 2020 and is expected to be completed by fall 2021. Progress can be viewed in real time at northeast.edu/webcams.

Funding for the agriculture facilities will come from the College’s commitment of $10 million, as well as external fundraising to fill the gap. With a total project cost of $22.3 million, Northeast has raised enough funds for construction; however, fundraising for the Nexus campaign continues, as more is needed for equipment, technology and furnishings.

In August 2019, the Acklie Charitable Foundation (ACF) announced a $5 million lead gift to the Nexus project. ACF was founded by the late Duane Acklie and Phyllis Acklie, both Madison County natives and graduates of Norfolk Junior College, a predecessor institution of Northeast Community College.

For more information on the Nexus Campaign, contact Kruse, at tracyk@northeast.edu, or call (402) 844-7056. Online donations may be made through agwaternexus.com. Checks may also be mailed to Nexus Campaign, Northeast Community College Foundation, P.O. Box 469, Norfolk, NE 68702-0469.



Nebraska Soybean Board to meet

The Nebraska Soybean Board (NSB) will hold its next meeting on March 23-24, 2021 at the Embassy Suites located at 1040 P Street, Lincoln, Nebraska.

Among conducting regular board business, the Board will review FY22 research proposals and other new opportunities. Due to the limitations and following CDC guidelines and the Department of Health Services, NSB is limiting guests to attend the in-person meeting. Registration for attending through Zoom and the complete agenda for the meeting is available for inspection on the Nebraska Soybean Board website at www.nebraskasoybeans.org.  



National Beef to Expand Iowa Premium Facility

National Beef Packing Company, LLC, a leading beef processor in Iowa, today announced plans to increase capacity and add a second production shift at its Iowa Premium beef processing facility located in Tama, Iowa. Total investment will be more than $100 million and will double the capacity of the plant to approximately 2,500 head per day.

“We are pleased to be making this investment in the growth of the Tama facility, and we appreciate the support of the local communities and the state of Iowa as we work together to make this expansion a success,” said Tim Klein, National Beef President and CEO. “This project will increase our capacity to produce products that are in high demand by our customers worldwide and will provide an expanded market for the Iowa family farmers who supply us with premium Angus cattle.”

The project is expected to be completed in late 2022 and will bring several hundred additional jobs to the region.

National Beef Packing Company, LLC, based in Kansas City, Mo, is a leading supplier of high-quality beef and beef by-products. The company employs over 9,500 and achieved annual sales of $9.4 billion in 2020.



National Beef to Expand Processing in Iowa

Today, National Beef Packing Company, LLC, announced plans to increase processing capacity and production at the Iowa Premium facility located in Tama, Iowa.

National Beef, headquartered in Kansas City, Mo., acquired the Iowa Premium plant in June 2019. At the time of acquisition, Iowa Premium employed more than 800 people and processed approximately 1,100 head of corn-fed, Black Angus cattle. A planned additional investment of more than $100 million will allow the plant to increase harvest capacity to approximately 2,500 head per day.

“As fed cattle demand continues to grow, we must look for ways to transform packing capacity within the state. We welcome opportunities to build more shackle space and encourage more competition for Iowa’s fed cattle inventory,” says Matt Deppe, CEO of the Iowa Cattlemen’s Association. “National Beef’s expansion plans, in conjunction with the state of Iowa’s initiatives to further develop local processing, will provide additional opportunities for cattle producers and our local communities.”

Iowa’s state slogan is “Fields of Opportunities.” The state is signaling that Iowa is open for business and our communities are willing to support actions to bring more homegrown, Iowa beef to the plates of consumers. The Iowa Cattlemen’s Association is encouraged to see this development in our own ‘back forty.’



February Milk Production in the United States down 1.5 Percent

Milk production in the United States during February totaled 17.6 billion pounds, down 1.5 percent from February 2020. However, production was 2.0 percent above last year after adjusting for the leap year.  Production per cow in the United States averaged 1,864 pounds for February, 44 pounds below February 2020.  The number of milk cows on farms in the United States was 9.46 million head, 81,000 head more than February 2020, and 3,000 head more than January 2021.

IOWA:  Milk production in Iowa during February 2021 totaled 422 million pounds, down 2% from the previous February according to the latest USDA, National Agricultural Statistics Service – Milk Production report. However, production was up 2 percent when adjusted for the leap year. The average number of milk cows during February, at 222,000 head, was the same as last month but 5,000 more than February 2020. Monthly production per cow averaged 1,900 pounds, down 75 pounds from last February.



NEBRASKA HONEY PRODUCTION

Honey production in 2020 from Nebraska producers with five or more colonies totaled 1.92 million pounds, down 5% from 2019, according to the USDA's National Agricultural Statistics Service.

There were 37,000 honey producing colonies in Nebraska during 2020, down 5% from 2019. Average yield was 52 pounds per colony, unchanged from 2019. Producer stocks were 250,000 pounds on December 15, 2020 up from 223,000 pounds a year earlier.

Prices for the 2020 crop averaged $1.71 per pound, up from $1.44 per pound in 2019. Prices were based on retail sales by producers and sales to private processors and cooperatives. Total value of honey produced in 2020 was $3.29 million, up 13% from 2019.

IOWA: Honey production from producers with five or more colonies in Iowa totaled 2.03 million pounds in 2020 according to the USDA, National Agricultural Statistics Service Honey report. This was a 3% decrease from the 2.09 million pounds produced in 2019. The number of honey producing colonies in the state at 35,000 is down 3,000 from 2019. This number does not include producers with fewer than five colonies or producers who did not harvest honey. Yield per colony in Iowa averaged 58 pounds, up from 55 pounds per colony in 2019. Iowa ranked sixteenth nationally in honey production, up from seventeenth place in 2019. Colonies which produced honey in more than one state were counted in each state where the honey was produced. Therefore, at the United States level yield per colony may be understated, but total production would not be impacted.

On December 15, 2020, producer honey stocks in Iowa, excluding stocks under government loan programs, were 1.26 million pounds, an 8% increase from 2019. The state’s 2020 honey crop was valued at $5.26 million, up 7% from the previous year’s $4.91 million. The average price per pound for all marketing channels in Iowa was $2.59, up 24 cents from 2019.

United States Honey Production Down 6 Percent in 2020
United States honey production in 2020 totaled 148 million pounds, down 6 percent from 2019. There were 2.71 million colonies producing honey in 2020, down 4 percent from 2019. Yield per colony averaged 54.5 pounds, down 2 percent from the 55.8 pounds in 2019. Colonies which produced honey in more than one State were counted in each State where the honey was produced. Therefore, at the United States level yield per colony may be understated, but total production would not be impacted. Colonies were not included if honey was not harvested. Producer honey stocks were 39.7 million pounds on December 15, 2020, down 3 percent from a year earlier. Stocks held by producers exclude those held under the commodity loan program.

Honey Prices Up 2 Percent in 2020
United States honey prices increased 2 percent during 2020 to $2.03 per pound, compared to $1.99 per pound in 2019. United States and State level prices reflect the portions of honey sold through cooperatives, private, and retail channels. Prices for each color class are derived by weighting the quantities sold for each marketing channel. Prices for the 2019 crop reflect honey sold in 2019 and 2020. Some 2019 crop honey was sold in 2020, which caused some revisions to the 2019 crop prices.



Custom Rate Survey Shows Costs for Iowa Farming

Many Iowa farmers continue to hire at least some of their fieldwork and livestock work to be done by others, and new data from a popular survey provides ranges and averages of what is being paid.

The “2021 Iowa Farm Custom Rate Survey,” conducted by Iowa State University Extension and Outreach, covers the amounts charged and paid for common crop and livestock services. Tillage, planting, harvesting, manure hauling and livestock transportation are all included, along with dozens of other tasks and data points.

The publication is highlighted in the March edition of the Ag Decision Maker, along with updates on county-level corn and soybean yields, and a farm bill crop payment estimator for 2021-2022.

Compared to last year, most custom rates saw a decline except for the cost of farm labor, according to Alejandro Plastina, associate professor in economics and extension economist at Iowa State University.

“It’s a reflection of the profitability situation in farming,” said Plastina, who sent 361 surveys by the U.S. Postal Service in February and 198 by email. The results were based on 118 responses and 3,785 custom rates submitted.

Fourteen percent of the respondents perform custom work, 16% hire work done, 45% indicated doing both and 25% did not indicate whether they perform or hire custom work.

The cost of combining corn ranged from $22 to $45 per acre, with an average of $35.10 per acre. The cost of combining soybeans ranged from $22 to $46 per acre, with an average of $34.20.

The cost to mow hay ranged from $8 to $15 per acre, with an average of $11.35 per acre. The average cost for baling small square bales was $.59 per bale, $9.35 for large square bales, $10.80 for large round bales without wrapping, and $13.20 for large round bales wrapped.

New information in this year’s survey includes rates for seeding cover crops, combining corn with a reel and scouting crops with fixed wing drones.

Plastina said the survey is a useful starting point for negotiations and farm discussions, but it is not intended to be the sole factor used to set price. Other factors include the availability of machinery in a given area, timeliness and skills of the operator, field size and shape, field conditions and the performance characteristics of the machine being used.

“This is a reference guide of 118 respondents,” he said. “It’s a poll of opinions of what these people expect to charge and what they expect to pay for custom work.”



National Biodiesel Board Meets 3 Billion Gallons this National Biodiesel Day

National Biodiesel Day takes place March 18, in honor of Rudolf Diesel’s birthday. In the 1890s, Rudolf invented the diesel engine, which was designed to run on peanut oil. Rudolf knew early on the prominent role renewable plant oils could play in fueling the future’s better, cleaner vehicles.

With this thought of innovation in mind, the National Biodiesel Board unveiled a new industry vision, a plan to grow to over 6 billion gallons by the year 2030, and, with advancements in feedstocks, 15 billion gallons by 2050.

Today, the operating capacity for the industry stands at more than 3 billion gallons, meeting half of NBB’s vision goal ahead of schedule. Announced expansions and new projects could potentially add over 3 billion gallons of capacity as early as 2023.

“To see a concept like Rudolf Diesel’s get us to a 3-billion-gallon industry is remarkable,” National Biodiesel Board CEO Donnell Rehagen said. “Our industry has seen its challenges, but for nearly 30 years into commercial biodiesel production, our association never took no for answer. With a mindset like Diesel’s and a better, cleaner product like biodiesel, we are well on our way to meeting our 6-billion-gallon goal.”



NCBA Secures Introduction of Bipartisan HAULS Act

Wednesday, the National Cattlemen’s Beef Association (NCBA) endorsed the Haulers of Agriculture and Livestock Safety (HAULS) Act of 2021. Introduced by Sen. Fischer (R-NE), Sen. Tester (D-MT), Sen. Wicker (R-MS), and Sen. Smith (D-MN), the bipartisan bill would deliver much-needed flexibility for livestock haulers.
 
“One year after COVID-19 began to disrupt daily life across the country, U.S. cattle producers continue to prove each day that they are committed to keeping grocery stores stocked with beef. Livestock haulers are a critical component of the beef supply chain and flexibility in livestock hauling regulations remains vital,” said NCBA President Jerry Bohn. “NCBA strongly supports this bipartisan effort to provide livestock haulers with the flexibility they need to maintain the highest level of safety on the roads, transport livestock humanely, and ensure beef remains available to consumers.”
 
Current hours-of-service (HOS) rules allow for 11 hours of drive time, 14 hours of on-duty time, and then require 10 consecutive hours of rest. When transporting livestock, there is a real need for further flexibility beyond the current hours-of-service. Unlike drivers moving consumer goods, livestock haulers cannot simply idle or unload their trucks when drive time hours run out without jeopardizing animal health and welfare.
 
“NCBA has long advocated against one-size-fits-all regulations for the live haul sector, and the COVID-19 pandemic further highlighted the need for flexibility when it comes to livestock hauling. The HAULS Act represents the best long-term solution — a permanent change to existing hours-of-service regulations that preserves animal welfare as well as safety on our roads, while also making sure producers can keep our grocery stores stocked with beef,” said NCBA Executive Director of Government Affairs Allison Rivera. “We thank Senator Fischer, Senator Tester, Senator Wicker, and Senator Smith for their work on this important legislation. NCBA will continue working on behalf of producers and haulers to provide flexibility within the current hours-of-service.”
 
BACKGROUND
This legislation is the latest of many steps NCBA has taken to win greater flexibility for livestock haulers and producers. Since the pandemic began, NCBA has successfully fought every month for a renewed emergency declaration which provides an exemption from hours-of-service for livestock haulers, while also working with Congress to maintain the ELD delay for livestock haulers until Sept. 30, 2021.
 
The HAULS Act would add a 150 air-mile radius exemption under HOS regulations to the backend of hauls for those transporting livestock or agricultural commodities. This legislation also eliminates the seasonal harvest requirements for the agriculture HOS exemption (making the exemption available year-round in all states), and updates and clarifies the definition of an agricultural commodity.



NGFA supports HAULS Act to provide regulatory relief for ag truckers

The National Grain and Feed Association (NGFA) today commended lawmakers for their introduction of the Haulers of Agriculture and Livestock Safety (HAULS) Act of 2021, which would provide much-needed regulatory relief for agricultural truckers.

Sens. Deb Fischer, R-Neb., Jon Tester, D-Mont., Tina Smith, D-Minn., Roger Wicker, R-Miss., re-introduced the HAULS Act – a bill based on legislation first introduced in 2020 – that includes updates to the agricultural exemption to the hours-of-service (HOS) rules.

The Federal Motor Carrier Safety Administration’s HOS requirements limit the time a commercial motor vehicle driver may be on duty and driving. Since its inception in 1995, the agricultural exemption to HOS rules has been vitally important to the food and agriculture industry, helping to ensure a more efficient and cost-effective freight transportation distribution system.

The HAULS Act would:
•    Ensure HOS exemptions are available in all states year-round;
•    Add a 150 air-mile exemption to accommodate slower driving on rural roads; and
•    Clarify the definition of an “agricultural commodity” to provide regulatory certainty for ag haulers.

“The HAULS Act makes incremental, but crucial, changes that would help accommodate the seasonal spikes in transportation of food, fiber and other agricultural supplies that ensure our country stays healthy and fed,” said NGFA Vice President of Economics and Government Relations Max Fisher. “This legislation, supported by more than 100 agricultural and livestock organizations, ensures haulers have the flexibility they need to deliver perishable products.”



NMPF Statement on House Passage of the Farm Workforce Modernization Act
President and CEO Jim Mulhern

“Today’s bipartisan passage of the Farm Workforce Modernization Act (FWMA) in the House of Representatives provides crucial momentum toward addressing dairy’s ongoing workforce crisis, which has only intensified during the COVID pandemic. NMPF thanks the House members who have championed these reforms, Immigration Subcommittee Chair Zoe Lofgren (D-CA) and Congressman Dan Newhouse (R-WA), for undertaking the difficult task of negotiating an agricultural labor bill that’s attracted a wide range of support as it has moved through the chamber.

“Nothing gets done if we cannot move forward. The broad industry and bipartisan support for passing FWMA in the House demonstrates the acute need for ag labor reform this Congress and illustrates that consensus can be achieved. To that end, NMPF also thanks House Agriculture Committee Ranking Member Glenn ‘GT’ Thompson (R-PA) for providing a roadmap for further improvements to the House measure while supporting the advancement of ag workforce reform efforts toward a solution.

“On that note, more work will need to be done for ag labor solutions to become law. NMPF will continue its bipartisan efforts in Congress and calls on the Senate to enact its own ag labor reform measure that gives dairy reliable access to the workforce farmers and farmworkers need to nourish the nation and the world.”



Register Now for the Next NCBA Producer Education Webinar

Grazing Systems & Management
March 25th, 2021 @ 7:00 p.m. Central

If you are interested in balancing forage growth, quality and health with animal performance and long-term soil health, this webinar is for you. While “Grazing Systems & Management” might be a lofty title, our presenters will deliver real world experiences, tools and resources that can be used to help producers achieve grazing success. Make plans to join us as we kick off this three-part series on forage and grazing management. Register here:  https://register.gotowebinar.com/register/624825383638977805.  



After 138 years, the American Angus Association reaches 20 million registrations

            When the American Angus Association® was established in 1883, the founding fathers could have never imagined the power and impact registered Angus cattle would make by the year 2021. In the past 138 years, the Association has seen a lot of changes, but the constant that has remained the same has been the Association’s passionate members who are dedicated to improving the beef industry across the world.

            The headquarters of the world’s largest beef breed association in Saint Joseph, Missouri, surpassed 20 million registrations on March 17, 2021. Growing the breed to more than 20 million registered Angus cattle is no small feat. During that time, the Association averaged 144,927 registrations per year, topping the charts at 406,310 registrations in 1968.

            "This is truly an exciting day for the American Angus Association and our members as we cross the 20 million milestone for registrations," said Jerry Cassady, Association director of member services. "To think that it took 96 years for our Association to reach the 10 million mark back in 1979, we’ve added another 10 million registered Angus into our registry in less than half the time. This is a credit to the hard work and efforts of our members."

            A registration certificate is more than a piece of paper. The registration paper creates demand and extra value in cattle that are powered by the qualities that the Angus breed brings to the table. Registration numbers signify the data behind the animal, tracing its lineage and potential to change the direction of cowherds. The registration paper allows members to join the Angus family. Using registered Angus bulls also unlocks additional premiums for every segment of the beef industry. If one registration paper can provide that much value - consider the impact of 20 million registrations.

           "It’s pretty amazing to consider the amount of work and dedication that has been invested by our members over the years to get to this point," said Mark McCully, Association chief executive officer. "Breeders of registered Angus cattle have stayed committed to the value of pedigreed seedstock and enjoy tremendous demand and market share today because of it."

            To join the family and learn more about registered Angus cattle, visit Angus.org or call the Association office in St. Joseph, Missouri at 816.383.5100.



RFA Urges EPA to Stay the Course on Renewable Fuel Standard

The Renewable Fuels Association on Wednesday asked newly confirmed EPA Administrator Michael Regan to “stay the course” on the Renewable Fuel Standard, as the important policy faces renewed attacks from oil refiners. In a letter to Regan, RFA responds to several assertions about the RFS and RIN credits contained in a letter sent Monday by the American Fuel & Petrochemical Manufacturers (AFPM).

“Contrary to the refiners’ claim that higher RIN values are a sign the RFS program is ‘broken,’ elevated RIN values are, in fact, a sign that the RFS is finally being allowed to work as intended to transform the transportation fuels marketplace,” wrote RFS President and CEO Geoff Cooper. “Even with the variety of compliance options available to obligated refiners, AFPM is asking EPA to ‘adjust’ (i.e., waive) the renewable fuel volumes required in 2021 based on the false premise that the fuel market cannot absorb the required amounts of conventional renewable fuel. However, even if AFPM’s arguments were legitimate, the Courts have rejected past attempts by EPA to reduce annual renewable fuel obligations based on supposed market barriers to increased biofuel consumption. They would most assuredly do so again.”

The RFA letter lists several options available to refiners for complying with the RFS, such as blending more flex fuels like E85, blending more E15, blending more biomass-based biodiesel, purchasing RIN credits from others, using surplus RIN credits from their RIN banks, or carrying forward a compliance deficit. “Refiners have numerous options and strategies available for compliance with the RFS. Most likely, refiners will use some combination of the above strategies. That optionality is a hallmark of the RFS program,” Cooper wrote, also noting that it is broadly accepted that the cost of acquiring RIN credits is recouped by all refiners, large and small. “Refiners who comply with the RFS by purchasing RIN credits (i.e., rather than blending renewable fuels) are passing the cost of those credits along to wholesale purchasers of their refined products.”

Cooper asks Regan to ensure the upcoming 2021 and 2022 RVO proposed rules include conventional renewable fuel volumes of at least 15 billion gallons per year, as required by the statute, along with the court-ordered 500 million gallons illegally waived from the 2016 standards.

“As you begin your tenure as Administrator, we respectfully encourage you to stay the course on the Renewable Fuel Standard,” the letter concluded. “Even in the face of continued attempts by the oil refining industry to undermine the program, the RFS has been an incredibly effective tool for reducing greenhouse gas emissions, cutting criteria tailpipe pollutants, reducing petroleum imports, and boosting rural economies.”



To Keep Trade Flowing To Taiwan, Council Works With New Staff Responsible For GM Approvals

It is vital U.S. corn growers follow protocols for genetically modified (GM) crops established by importing countries to ensure steady and continued trade flows. However, sometimes approval procedures can be slow, threatening to inhibit the process - a dynamic the U.S. Grains Council (USGC) aims to help avoid.

One of the Council’s key trade servicing efforts with long-time trading partner Taiwan is to keep an open line of communication between members of the U.S. agricultural supply chain and Taiwanese government biotech regulatory officials and scholars responsible for approving one or multiple biotech events.

Since 2008, Taiwan’s GM approval timelines have lengthened, due mainly to regulatory issues and personnel changes among regulatory officials and reviewing teams. To address that, the Council, with the help of industry partners in Taiwan and United States as well as Taiwanese government staff, co-sponsored the GM Food and Feed Assessment Symposium on Mar. 11 to discuss GM issues, provide updated information and create a better understanding among those in Taiwan who make GM approval decisions.

“Since the implementation of Taiwan stack regulation in 2008, the data requirements have increased significantly,” said Michael Lu, USGC director in Taiwan. “In contrast, other importing countries, like Japan, have significantly reduced regulatory requirements or even deregulated on breeding stacks based on science and long experience of no concern. Considering the long history of safe use of conventional breeding and long experience of the Taiwanese government in reviewing stacks without a single case indicating potential safety concerns, it is time to revisit the stack data simplification.”

GM traits – called events – can be applied one at a time or in multiples. Multiples are called “stacks” of traits, and sometimes these must get approved separately from the individual trait, which can take significant time.

Taiwan has a well-developed regulatory system for biotechnology, with Taiwan’s Food and Drug Administration (TFDA) responsible for the registration and approval of new biotech events for food in Taiwan. The Council of Agriculture (COA) is responsible for regulating biotech events for feed use.

This system allows stakeholders to easily identify who is working on biotech approvals and offer opportunities like attending the recent conference. The hybrid symposium – offered in cooperation with Crop Life Taiwan, the American Institute in Taiwan, the USDA’s Foreign Agricultural Service (FAS) in Taipei and the Council’s Taiwan Office - included more than 50 in-person attendees from the TFDA, COA and other regulators, food and feed committees and biotech academics. In-person presentations were supplemented with online discussions with GM experts from the United States, Australia, New Zealand and Japan.

“This meeting helped the decision makers in attendance get a better understanding of breeding stack protocol and science-based safety assessment and to further consider stack simplification so the overall timeline for approval issuance can be reduced,” Lu said.

In the 2020 calendar year, Taiwan approved four new GM events, including one corn event, bringing the total of approved corn events to 80. No shipments of U.S. corn were rejected or delayed due to concerns about biotech events in 2020.