Thursday April 15 Ag News

 Rural Mainstreet on Strong Growth Path: Farmland Prices Expanding Rapidly
 
For the fifth straight month, 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.         

Overall: The overall index for April slipped to a still healthy 69.0 from a record high 71.9 in March.  The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.  Approximately, 37.9% of bank CEOs reported that their local economy expanded between March and April.  

“Strong growth in grain prices, the Federal Reserve’s record-low interest rates, and growing exports have underpinned the Rural Mainstreet Economy. 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.  

Fully 100% of bank CEOs indicated that export markets were important, or very important, to their local economy.

Farming and ranching: For a seventh straight month, the farmland price index advanced above growth neutral. The April reading climbed to 78.6, its highest level since 2012, and up from 71.9 in March.  This is first time since 2013 that Creighton’s survey has recorded seven straight months of farmland prices above growth neutral.

Bankers reported that approximately 9.1% of farmland sales over past six months have gone to nonfarmer investors.   

The April farm equipment-sales index rose to 67.5, its highest level since 2013, and up from March’s very strong 63.5. After 86 straight months of readings below growth neutral, farm equipment sales bounced into growth territory for the last five months.    

Below are the state reports:
Nebraska: The Nebraska RMI for April slipped to77.1 from March’s 78.8. The state’s farmland-price index rocketed to 82.6 from last month’s 76.1. Nebraska’s new-hiring index declined to 67.5 from 78.4 in March.  Despite recent solid job gains, U.S. Bureau of Labor Statistics data indicate that Nebraska’s Rural Mainstreet nonfarm employment remains more than 800 jobs, or 0.3%, below its pre-COVID-19 level.

Iowa: The April RMI for Iowa decreased to 69.8 from March’s 71.6. Iowa’s farmland-price index rose to 78.6 from 72.4 in March. Iowa’s new-hiring index for April fell to 63.5 from 72.7 in March. Despite recent solid job gains, U.S. Bureau of Labor Statistics data indicate that Iowa’s Rural Mainstreet nonfarm employment remains more than 27,000 jobs, or 4.2%, below its pre-COVID-19 level.

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.



Nebraska Ribfest Returns to Lincoln This August

The long-loved, famous Nebraska Ribfest is set to return to Lincoln after a 2-year hiatus. New this year, it will occur at the Lancaster Event Center (LEC) Fairgrounds August 5–7 2021 as part of the Lancaster County Super Fair’s ten-day 150th anniversary, July 29–August 7.

The LEC Fairgrounds team has partnered with Nebraska Pork Producers Association to bring Nebraska Ribfest back to the community. Nationally recognized BBQ vendors will be competing August 5–7 to show off their best delicacies, with the champion awarded on the afternoon of Saturday, August 7. Live local bands will be showcased nightly, with a DJ host every afternoon. Full list of participating BBQ vendors will be available June 1 at SuperFair.org.

“The Nebraska Pork Producers Association is beyond excited to see the return of a Ribfest to Lincoln. We are always thrilled when opportunities arise for consumers to enjoy the high-quality pork we are so proud to produce!” said Nebraska Pork Producers Association President Shana Beattie, “We look forward to supporting the Lancaster County Super Fair with their effort to revive this fan-favorite event.”

Also new this year, admission to Nebraska Ribfest will be completely free beyond the normal fair gate fees. Free fair gate admission tickets will be available at U-Stop Lincoln locations from June 1–Aug 7, while supplies last. Other fair gate ticket sponsor locations will be shared on SuperFair.org as they become available.  Otherwise, fair gate admission is $3/person/entry. Parking is $5/vehicle.

BBQ vendors will be serving the public on Thursday, August 5 from 5-11pm and Fri-Sat Aug 6–7 from 1-11pm in the Attraction Zone on the north side of the fairgrounds. Full-service liquor bar and ample seating will be available in the adjacent beer garden and shade tent.

In addition to enjoying world-class BBQ offerings not available in the area year-round, visitors of all ages will be steps away from other free and low-cost fair entertainment:
• NEW Aussie Kingdom – USA’s ONLY traveling Australian wildlife show (All 10 days)
• Thousands of animal and static entries inside the pavilions (July 29–Aug 1)
• Demolition Derby* (Friday)
• Fast Track Dirt Drags* (Saturday)
• NEW Summer Flea Market* (Thursday - Saturday)
• NEW Lancaster Cornhole Tourney (Friday, Saturday)
*extra ticket required

Make plans now for your family trip or date night to Nebraska Ribfest and see what else is new at the Super Fair at SuperFair.org or follow on social media @SuperFairLNK.



This Week's Drought Summary
droughtmonitor.unl.edu

Last week’s storm system brought heavy rain and thunderstorms to much of the central and eastern U.S., bringing drought condition improvements to parts of the Midwest and eastern Plains. Meanwhile, warm, dry conditions persisted in the West and New England, resulting in deteriorating conditions. Parts of the Southwest are now experiencing record levels of dryness for the last 12 months. In New England, year-to-date precipitation ranks in the top 10 driest on record.

Midwest
Widespread precipitation across the Midwest led to broad improvements to drought across the region, erasing moisture deficits and improving soil moisture and streamflow. Locally heavy totals (more than 2 inches) led to a two-category improvement in western Minnesota. These short-term gains also finally chipped away at the D3 (exceptional drought) area in northwestern Iowa that had been in place since October 2020. Cooperative Extension notes that tile lines are running again and water is standing in roadside ditches. Soil moisture has also started to rebound.

High Plains
The High Plains generally saw cooler than normal temperatures and widespread precipitation over the last week. Locally heavy amounts of rainfall (more than 2 inches) helped erase long moisture deficits in eastern South Dakota and southeastern North Dakota, resulting in improvements to moderate drought. In the remainder of the region, precipitation wasn’t enough to prevent worsening conditions. Moderate drought (D1) expanded in South Dakota and extreme drought (D3) expanded in both North and South Dakota to reflect the growing moisture deficits and its effect on soil moisture. Agricultural field reports indicate planters are being idled, except in the southeastern corner of the state, and cattle are being culled.

Looking Ahead
The National Weather Service Weather Prediction Center forecast for the next five days (April 15-19) shows slow moving storm systems affecting large parts of the Lower 48. This storm is expected to bring cold temperatures and late season snows across the Northern Plains, Central Rockies and Northern Great Basin. In the Southwest, dry weather combined with gusty winds is expected to persist, leading to an elevated fire risk. In contrast, the Lower Mississippi Valley and eastern Gulf Coast states are expected to see heavy rainfall. Moving into next week, the Climate Prediction Center six to 10 day outlook (valid April 19-23) favors above normal temperatures across the West, Northeast and Southeast. Below normal temperatures are most likely across the Great Plains, Midwest and Mississippi Valley. Below normal precipitation is expected across much of the country with the exception of the Southern High Plains, Florida and New England.



Fischer’s HAULS Act Gains Support in Congress

U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Commerce Committee and the Senate Agriculture Committee, released the following statement today after additional Senate cosponsors signed on to her Haulers of Agriculture and Livestock Safety (HAULS) Act, and bipartisan companion legislation was introduced in the U.S. House of Representatives:

“I am pleased to see my bipartisan legislation gaining momentum in both chambers of Congress. Ag and livestock haulers play an important role transporting food and fuel across America. The HAULS Act will ensure that these haulers can do their critical jobs safely and efficiently.”

Senators Jim Risch (R-Idaho), Shelley Moore Capito (R-W.V.), and Mike Crapo (R-Idaho) have joined as cosponsors to the Senate HAULS Act, bringing the bipartisan bill to 16 cosponsors. A House companion was introduced by Representatives John Rose (R-Tenn.) and Darren Soto (D-Fla.)

The legislation would:
    Eliminate the requirement that ag and livestock hours-of-service (HOS) exemptions only apply during state designated planting and harvesting seasons
    Amend and clarify the definition of “agricultural commodities” based on feedback provided by agriculture and livestock organizations
    Authorize a 150 air-mile exemption from HOS requirements on the destination side of a haul for ag and livestock haulers
 
Support for the HAULS Act:
“Nebraska plays an integral role in the U.S. beef production chain as a leading state for commercial cattle slaughter, all cattle on feed, commercial red meat production, and livestock cash receipts. Unfortunately, current federal regulations fail to account for the intricacies involved with hauling live animals. The HAULS Act would help mitigate situations where a hauler is forced to choose between compliance with federal law or the health and welfare of the livestock on board. Nebraska Cattlemen sincerely thanks Senator Deb Fischer for her commitment to delivering needed regulatory flexibility for livestock haulers by helping facilitate longer hauls that are inherent to cattle production in our state,” said William H. Rhea III, President of Nebraska Cattlemen.

“Farmers and ranchers must be able to get their crops and livestock to market efficiently and safely. The HAULS Act modernizes trucking regulations to meet the needs of our members. I applaud Senator Fischer for her leadership on this important issue and look forward to working with her to get the HAULS Act enacted into law,” said Zippy Duvall, President of the American Farm Bureau.

“We thank Sen. Fischer for reintroducing the HAULS Act to provide much needed regulatory relief to our nation’s farmers, ranchers, and agriculture haulers. The efficient transport of livestock is critical to the agriculture sector and to the welfare of our livestock animals. Sen. Fischer has been a long-time champion of common-sense approaches to transportation rules and regulations. The HAULS Act reflects this common-sense approach by updating oversight of livestock transport to provide flexibility and better reflect the unique challenges that exist in hauling live animals. We stand ready to work with Sen. Fischer to enact this important legislation,” said Mark McHargue, President of the Nebraska Farm Bureau.

“By expanding the agricultural exemption to trucking hours-of-service rules, Sen. Fischer’s HAULS Act of 2021 would greatly increase the rules’ usefulness for agricultural haulers across the country. Moreover, the bill’s addition of feed ingredients would clarify that agricultural products, such as soybean meal and distillers grains, are eligible for the agricultural exemption and create more certainty in the trucking rules.   NGFA commends Sen. Fischer for her leadership, and urges that her bill be incorporated into a reauthorization of the FAST Act,” said Mike Seyfert, President and CEO of the National Grain and Feed Association.

“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. NCBA strongly supports this effort, and thanks Sen. Fischer, Sen. Tester, Sen. Wicker, and Sen. Tina Smith for their bipartisan leadership on the issue. Congress must 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,” said Jerry Bohn, President of the National Cattlemen’s Beef Association.

“AFTC supports Senator Fischer in her reintroduction of the HAULS Act. The Senator’s tireless work on this important issue shows her deep understanding of the need for flexibility within the agriculture community. This legislation takes great strides in clarifying those covered under the exemption, while eliminating unnecessary restrictions on seasonality. Since the inception of the exemption in 1995, agriculture has evolved and this exemption has continued to evolve with it. We are grateful that we have a champion that understands, so well, an industry that feeds and clothes those around the world,” said Jon Samson, Executive Director of the Agricultural and Food Transporters Conference.

“The LMA appreciates Sen. Fischer’s continued work on livestock transportation, which has been further advanced by the reintroduction of the HAULS Act. LMA member markets and the farmers and ranchers they serve need a long-term and meaningful solution to the lack of flexibility in this space. The HAULS Act goes a long way toward achieving that flexibility,” said Jara Settles, Livestock Marketing Association General Counsel and VP of Risk Mitigation.

“The Haulers of Agriculture and Livestock Safety (HAULS) Act of 2021 couldn’t be re-introduced at a more needed time. The bill provides clarity with the addition of feed ingredients, such as soybean meal and distillers grains, to the agricultural products definition. Clarity keeps the transport of agricultural products moving when there are unforeseen bottlenecks with from Mother Nature and ‘Acts of God’ such as Nebraska’s 2019 floods, the pandemic, and the most recent utterly cold temperatures experienced in the Midwest halting some animal feed manufacturing. A stable and consistent food supply is needed by all and this bill helps better meet that need.  The Nebraska Grain and Feed Association supports these changes and thanks Senator Fischer’s leadership on this important food and transportation bill,” said Kristi Block, Executive Vice President of Nebraska Grain and Feed Association.



Single Week U.S. Sorghum Sales Shatter Previous Records

U.S. Department of Agriculture data issued this morning show U.S. sorghum exports the previous week were a record breaking 33.9 million bushels, topping the previous record by more than 10 million bushels, which took place in August 2020. The top destination was China.

In addition to record-breaking exports, new sales commitments were 33.8 million bushels, predominantly purchased by China. The previous record for weekly sorghum sales was 32 million bushels, also in August 2020.

“U.S. sorghum exports continue to signal very strong demand for our crop, and new purchases at this level only reaffirm that,” National Sorghum Producers CEO Tim Lust said. “The size of shipments reported this last week is equivalent to the size of approximately 10-12 Panamax vessels.”

New crop purchases of U.S. sorghum for this point in marketing year are also at a record level, reaching 40 million bushels this past week—a 264 percent increase from the previous record set in 2014. These new crop purchases are significant, particularly in the wake of a + $5 Dec 2021 Chicago Board of Trade price.

“This is the strongest new crop demand we have ever seen at this time in the season,” Lust said. “Availability is so scarce that the sorghum crop being planted now is being marketed at the same time, and farmers have not even started planting in Kansas yet. This sends a strong demand signal to U.S. sorghum producers from our international customers, and we look forward to getting the 2021 crop in the ground.”



ACE Urges for a Technology-Neutral Approach to Infrastructure and Incentives for E15-E85 and Flexible Fuel Vehicles

As Congress considers infrastructure legislation, American Coalition for Ethanol (ACE) CEO Brian Jennings urges lawmakers to take a technology-neutral approach when making investments to accelerate the nation’s transition to clean energy in the transportation sector and provides recommendations for ways Congress can spend a small fraction of the proposed $174 billion currently being discussed in support of the electric vehicle (EV) supply chain by capitalizing on ethanol’s ability to make near-and-long-term reductions in greenhouse (GHG) emissions.

In letters sent today to House and Senate leaders, along with key committee chairs and ranking members, Jennings pointed out that electric-only vehicles are just 0.3 percent of total vehicles, meaning 99.7 percent of vehicles in the U.S. use liquid fuel. “The bottom line is there are hundreds of millions more people driving vehicles capable of using clean fuels such as E15 and E85 today than any other alternative, and that will be the case for a very long time,” the letter stated. “If Congress wants to achieve immediate climate benefits from clean energy infrastructure, it should provide incentives for retailers to sell E15 and E85 and for automakers to resume the production of FFVs [flex fuel vehicles].”

The letter also cited how corn ethanol can achieve just as meaningful if not greater GHG reductions than EVs, with reference to research published from Harvard and Tufts that indicates average corn ethanol lifecycle GHG emissions are 50 percent cleaner than gasoline. “Further, ethanol is the only transportation energy source that can reach net-negative carbon intensity through continued advancements within ethanol facilities and on-farm practices in how biofuel crops are grown. As a result, ethanol provides near-term and long-term climate benefits,” Jennings wrote.

Jennings shared several ways Congress can unleash ethanol’s ability to rapidly decarbonize transportation fuel in the overall infrastructure package, some of which have zero cost for U.S. taxpayers or relate to clearing outdated roadblocks that currently restrict market access for clean fuels such as E15 and E85.

The recommendations include providing incentives for automakers to resume the production of FFVs and/or consumers to purchase them, support for E15 and E85 market access through the Renewable Fuel Infrastructure Investment and Market Expansion Act and/or modifying and extending the existing Alternative Refueling Property Credit, codifying Reid vapor pressure parity for all ethanol-gasoline blends greater than 10 percent, including the Adopt GREET Act, supporting funding for projects to help ethanol producers capture and sequester carbon, removing barriers to mid-level blends such as E30, and more.



Preliminary Agenda Announced For 2021 International Fuel Ethanol Workshop & Expo

This week, Ethanol Producer Magazine announced the preliminary agenda for the 2021 International Fuel Ethanol Workshop & Expo (FEW) taking place July 13-15, 2021 at the Iowa Events Center in Des Moines, Iowa.

This year’s agenda includes two new co-located events: Biodiesel & Renewable Diesel Summit and National Biomass Summit & Expo, along with two pre-conference events: Low Carbon Efficiency Summit and Ethanol 101.

“We were thrilled with the response our speaking community had to our call for abstracts and presentation ideas,” said program developer, Tim Portz. “We were able to organize an agenda that not only provided a comprehensive overview of the technical aspects of fuel ethanol production, but also complete strong agendas for the Biodiesel & Renewable Diesel Summit and National Biomass Summit. Together these programs will offer the most comprehensive agenda in bioenergy in 2021.”

The program includes nearly 150 presentations across multiple consecutive tracks:
    Track 1: Production & Operations
    Track 2: Leadership & Financial Management
    Track 3: Coproducts & Product Diversification
    Track 4: Infrastructure & Market Development
    Biodiesel & Renewable Diesel Summit
    National Biomass Summit

“Because of its proximity to a large number of ethanol production facilities, attendees have suggested we move the FEW to Des Moines,” says John Nelson, vice president of operations at BBI International. “This year provided an opportunity for us to make the move and the feedback we have received from exhibitors and sponsors has been extremely positive. Also, the large number of abstracts submitted is a strong indicator that moving to Des Moines is a step in the right direction.”

The event registration is free to all producers of ethanol, advanced biofuels, biodiesel, renewable diesel, biomass power & thermal, RNG, biogas, as well as wood pellets and other densified biomass.

The agenda for all events co-located with the FEW can be viewed online http://fuelethanolworkshop.com.



Register for Part Three of the NCBA Grazing Series Webinar
Grazing Tools of the Trade
April 22th, 2021 @ 7:00 p.m. Central

Join this webinar to learn about successful approaches to incorporating grazing tools into your operation. Experts will take a deep dive into grazing technology and share real world examples of how you can add these tools to your grazing system. Speakers Dr. Corriher-Olson, a forage specialist from Texas A&M, Coby Buck, the U.S. Account Manager for AgriWebb, and Jon Griggs, 2017 Environmental Stewardship Award winner and manager of Maggie Creek Ranch, will each share their unique perspectives and tech tools that will optimize your grazing season.

Click to Get Registered Today... https://register.gotowebinar.com/register/6795655174908389388.  



Comments Extended on Proposed Conservation Practice Standards

USDA's Natural Resources Conservation Service (NRCS) Wednesday announced it will extend the deadline for public comment on proposed revisions to 23 national conservation practice standards through a posting in the Federal Register. The proposed revisions were published March 9 with comments originally due April 8. Comments will now be due April 22.

NRCS is encouraging agricultural producers, landowners, organizations, Tribes and others that use its conservation practices to comment on these revised conservation practice standards. NRCS will use public comments to further enhance its conservation practice standards. The proposed revisions to the 23 conservation practice standards are available on the Federal Register at https://bit.ly/3tqsA0c. Comments can be made through regulations.gov or by mail or hand delivery.

"By extending the deadline as requested by customers, we hope to collect as much input as possible to ensure that the standards used to carry out these 23 specific conservation practices are relevant to local agricultural, forestry and natural resource needs," said NRCS Acting Chief Terry Cosby.

The 2018 Farm Bill required NRCS to review all 169 existing national conservation practices to seek opportunities to increase flexibility and incorporate new technologies to help the nation's farmers, ranchers, and private forest landowners better protect natural resources on their working lands. In 2020, 57 conservation practice standards were updated after public review and are available on nrcs.usda.gov. NRCS's conservation practices offer guidelines for planning, installing, operating and maintaining conservation practices nationwide.



U.S. Dairy Applauds USDA Work to Implement New Dairy Donation Program

The U.S. Department of Agriculture announced yesterday that it will soon implement the $400 million Dairy Donation Program established by Congress in December 2020. The department provided details on program participation to dairy processors and cooperatives to ensure donations of nutritious dairy products continue to make their way to Americans struggling with hunger while USDA finalizes the program.

The National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA) today issued the following statements applauding USDA’s work:

“NMPF worked closely with Congress to enact the Dairy Donation Program (DDP) in the Consolidated Appropriations Act of 2021. This important program will help dairy farmers and the cooperatives they own to continue to do what they do best – feed people. Dairy stakeholders are eager to expand their partnership efforts with food banks and other distributors to provide a variety of nutritious dairy products to food insecure households who have faced uniquely difficult challenges throughout the COVID-19 pandemic, as hunger has risen significantly during the last year. We commend USDA for prioritizing implementation of the DDP and look forward to continue working with the Department, the food bank community and all involved to make the program a success,” said Jim Mulhern, president and CEO, NMPF.

“IDFA applauds USDA for advancing the Dairy Donation Program (DDP), which will facilitate the donation of fresh, nutritious dairy products to nonprofit organizations helping Americans currently struggling with hunger and nutrition issues. The U.S. dairy industry stepped up throughout the pandemic to partner with and aid non-profits, charities, and other organizations working to combat our nation’s hunger issues that were exacerbated by the coronavirus pandemic. This new program will help ensure persons in need continue to receive assistance and the unique combination of essential nutrients that only dairy products can provide. IDFA appreciates the department’s work to ensure dairy donations continue during this crucial time of need in our country. We will continue to work with the department to ensure the program works efficiently for dairy processors and cooperatives and the nonprofit organizations serving our nation’s food insecure families,” said Michael Dykes, D.V.M., president and CEO, IDFA.



New SHP Business Case Showcases the Impact of Cover Crops on Erosion Control

In a new business case from Soil Health Partnership, Missouri farmers Tim and Trent Gottman share how building soil health through reduced tillage and cover crops has been critical to reducing erosion on their Missouri farm. By keeping the soil in place, they hold onto valuable nutrients and help protect nearby waterways.

It was in the mid-2000s when Tim says he first started noticing a significant change in weather patterns. Rainfall events seemed more frequent and more extreme in the spring, pushing planting dates back later and later. Over years of watching his soils wash away, he and his brother Trent worked toward strategically approaching erosion control in a way that was financially feasible for their farm.

“I don’t want to be the guy that stands in the shop every time we get a big rain and go, ‘Well…’ and just shrug my shoulders,” Tim said. “It seemed to me we needed to start adopting practices where, when that happens, you haven’t lost all your fertility, you haven’t lost all your soil – you stand to live another day. We had to do something to slow this water from running off.”

So, in 2014, they invested in a Salford® vertical tillage tool and began using cover crops. Along the way, every decision he and his brother made was driven by a singular vision.

“Our goals [with soil health] have always been around reducing erosion. And we believe that, as the soil structure improves, the price tag will be worth it.”

The business case details the Gottmans’ approach to cover crop planning and implementation, as well as data from two different research trials: 1) an Edge of Field Water Quality Monitoring Program study in partnership with Missouri Corn, Missouri Soy and the Missouri Department of Natural Resources, and 2) a Soil Health Partnership cover crop trial.

About his decision to collaborate on projects like these, Tim said, “Any time we can show that farmers are trying to be stewards of the land and doing what we can to keep these nutrients from running off, then we can have a positive voice.”