Thursday April 8 Ag News

 Pender FFA Advisor Rusty Bartlett Receives Award

The Nebraska FFA Foundation has awarded Mr. Rusty Bartlett, Pender FFA advisor, with the 2021 Gary Scharf Helping Hand Award.  

Bartlett, FFA advisor for the Pender FFA chapter, was nominated for the award with support by former students and community members. Mr. Bartlett is a retired military veteran. He has led several community development projects, served for his local firemen’s banquet and coached youth sports.

In her nomination, fellow community member, Wanda Kelly wrote “Mr. Bartlett is a man of faith, a devoted family man, a military veteran, a trusted neighbor, a community volunteer, a good friend. He also has been and continues to be a tireless educator, a mentor to countless students, a respected coach and the kind of individual that parents and grandparents want their children to have the privilege of having in their life.”

A former Pender student, Lexi Ostrand said “In the community, Mr. Bartlett is always the first to offer aid at any moment, especially during natural disasters like the recent floods of 2017 and 2018 and the Pilger tornadoes of 2014. He also helps to plan and execute various events within the school and community, such as the Veteran's Day program that the school puts on which holds a special place in his heart as he served in the military for 26 years.”

The Gary Scharf Helping Hand Award recognizes a Nebraska agriculture teacher or FFA advisor for what he or she has done in helping others, specifically in the school and community outside of agriculture education and FFA. As recipient of the award, Bartlett receives a plaque and $500 cash award from the Nebraska FFA Foundation.

“The Foundation Board is honored to present this award to Mr. Bartlett. He exemplifies many qualities that defined Gary Scharf’s life – commitment, self-sacrifice and genuine kindness,” says Stacey Agnew, Executive Director, Nebraska FFA Foundation.

The annual award is named for Gary Scharf, who was a victim of an Omaha mall shooting in December 2007. Scharf grew up on a family farm outside of Curtis, Nebraska and worked in the agricultural chemical industry. He made a significant contribution to Nebraska’s agricultural and FFA community through his years of service on the Nebraska FFA Foundation Board, including a year as Board President in 2002-2003.



Nebraska Farm Bureau Foundation Announces 2021 FFA Advisors of the Year

The Nebraska Farm Bureau Foundation selected two recipients for the FFA Advisor of the Year award. AnnaLisa Estrela from Ashland-Greenwood High School and Brian Johnson from Litchfield High School were honored on April 8 during the 2021 Nebraska FFA Virtual State Convention. The winning advisors received a plaque and a $1,000 donation to their FFA chapter.

The teachers were nominated by their own students and chosen based upon their school and community involvement, leadership development in their classroom, and ability to keep their students involved in agriculture.

“It is an honor to recognize two teachers who work each day to equip students for success,” said Megahn Schafer, executive director of the Nebraska Farm Bureau Foundation. “Ms. Estrela and Mr. Johnson contribute in the classroom and in their communities. Their emphasis on continual learning will serve their students as they explore college and careers related to Nebraska agriculture.”

Estrela is in her ninth year as the FFA Advisor for Ashland-Greenwood High School. Estrela ensures each student is able to reach their career goals through their Supervised Agricultural Experience (SAE) project. She places great emphasis on the importance of students growing their life skills while creating opportunities for achievements. In her community, Estrela is known for her extensive effort that she puts into the community and agricultural education program.

“I am honored to receive this award.  It means a lot to me that the students and community members nominated me, but it is also really comforting to know that agricultural companies are supportive of what agriculture teachers do in their classrooms and with their FFA Chapters,” Estrela said.

Johnson goes out of his way on a daily basis to make sure he puts his students in a position to succeed in life. The Litchfield FFA Chapter is active in the community and participates in community events including community clean up and teaching about farm safety during the “Bring Your Tractor to School” event where they teach elementary students about the importance of being safe around farm equipment. The chapter is also heavily involved in the Nebraska Farm Bureau Foundation’s Connecting Chapters program where they increase agricultural awareness, knowledge, and appreciation in their community.

“When I took over the Litchfield FFA program, my only experience with the organization was volunteering with the Broken Bow FFA chapter. My students and I have learned a lot over the past five years, and we continue to make positive changes each year. Winning this award helps to reaffirm that we are doing something right and that we are on the right track. We couldn't have gotten this far without the students buying into the program and wanting to succeed,” Johnson said.

“All of the FFA advisors nominated make a positive difference every day,” Schafer said. “They invest in the students who are the future of our great state, and we are proud to celebrate their service.”



Pillen Launches Campaign For Governor

On Wednesday, conservative farmer, businessman, and University of Nebraska Regent Jim Pillen announced his candidacy to be the 2022 Republican nominee for Governor of Nebraska.

"Our state is at a crossroads, and it's never been more important to have principled, conservative leadership with a vision for Nebraska's future," said Pillen. "We have to fix our broken property-tax system, grow our economy statewide, and defend our principles and our way of life. The next decade will make all the difference, and I want to help keep Nebraska great so all our kids and grandkids can prosper. I'm humbled by this opportunity to serve, and I'll work hard to make my case to every voter I can in the coming year. We're excited to get started."

In a campaign announcement video released today, Pillen discussed his roots in Nebraska agriculture and his commitment to protecting the values, freedoms, and unparalleled quality of life Nebraskans enjoy. "Nebraska represents the best of America, and this is where we make our stand," he said.



Nebraska Farm Bureau Says Property Tax Relief, Education Funding Reform, and Broadband Must Be State Budget Priorities

Nebraska Farm Bureau is urging state lawmakers to make dollars for property tax relief, school funding reform, and expanded broadband top priorities during state budget negotiations. Senators will begin the budget debate Thursday, April 8.

“It’s imperative the Legislature invest our state tax dollars in the areas that will help strengthen our state by supporting our families, businesses, and communities. That means providing tax relief, finding better ways to fund our schools, and ensuring we have infrastructure that meets our growing needs,” said Mark McHargue, Nebraska Farm Bureau president.

According to McHargue, one of the most impactful things the Legislature can do in the budget is build upon the property tax relief the Legislature enacted last year with the passage of LB 1107. The measure put in place a framework whereby property tax relief for Nebraskans would grow as the state’s economy grows. The legislation provided the relief through a new refundable income tax credit based on property taxes paid to schools of which Nebraskans were able to claim for the first time this tax season.

“Putting tax money back in the hands of hardworking Nebraskans is the best way to help families and communities. The Legislature can do that by ensuring the state budget triggers additional LB 1107 tax relief for 2021. It’s imperative senators provide the greatest amount of property tax relief possible,” said McHargue.  

Reforms obligating the state to take greater responsibility for funding the education of all of Nebraska’s K-12 students is also a high priority. According to McHargue only 84 of Nebraska’s 243 school districts will receive state equalization aid for the current school year, leaving 159 school districts to be funded primarily through local property taxes. LB 454, a bill introduced by Sen. Curt Friesen of Henderson, would enact “stabilization aid”, a new form of state aid to be directed to school districts that rely heavily on property taxes for funding.  

“It’s very important the Legislature ensures dollars are available in the budget to fund this important step forward to ensure the state does more to fund the education of Nebraska students regardless of where they live or the size of their school,” said McHargue.

Nebraska Farm Bureau also backs funding a proposal by the governor to put $40 million over the next two-years toward grants for expanding broadband in the state.

“There’s no way rural Nebraska or our state will reach its full potential if we don’t expand broadband in Nebraska. It’s important to the future of our schools, telehealth, and main street businesses. It’s critical to farmers and ranchers in using precision technology that allows us to improve across the board, including minimizing our environmental footprint. It’s vital the Legislature continues to invest in broadband,” said McHargue.

Visit www.nefb.org/action-alert to encourage your senator to support these priorities.



GROUNDWATER LEVELS WERE UP SIGNIFICANTLY IN EARLY 2020, REPORT SHOWS

Groundwater levels rose significantly across most of Nebraska from January 2019 to January 2020, and the state received so much precipitation over that period that a new color was added to the 2019-20 precipitation map included in the recently released 2020 Nebraska Groundwater-Level Monitoring Report.

“We ran out of blues, so we had to go to purple,” said Aaron Young, a geologist with the University of Nebraska–Lincoln’s School of Natural Resources and lead author of the report.

Over that period, Young said, 159 of 163 weather stations across Nebraska measured more precipitation than the 30-year normal. While most of the state was bathed one shade of blue or another to reflect bountiful totals, the purple dot was added in Cherry County, where 212% of normal precipitation fell.

The rain, snow and ice surpluses from 2019 were reflected in thousands of well measurements taken across much of Nebraska in early 2020, beneath which nearly three-quarters of the total volume of the High Plains Aquifer lies. In total, 4,970 wells were measured across Nebraska last spring, and there was an average increase of 1.58 feet in them statewide.

“An average rise of 1.58 feet statewide is pretty significant,” Young said.

Groundwater-level rises were recorded in 79% of the wells measured, with 55% of the wells recording an increase of more than a foot of water.

Many of the groundwater level decreases in the latest report were recorded in wells located near the Missouri River or in Dawson County, which is located along the Platte River. Young said that in 2019, those water levels were measured at or near the peak stage of spring flooding, meaning that even though groundwater totals remained robust in those areas when they were measured in early 2020, the measurements had nowhere to go but down.

“So, we're not actually seeing a decline,” he said. “We're just seeing a departure from extremely high levels in 2019."

Typically, the Nebraska Groundwater-Level Monitoring Report reflects measurements of over 5,000 wells. That number was slightly smaller this year in part because of flood-related access issues or pandemic-related travel restrictions put in place in early 2020, when Young typically visits about 120 well sites to record measurements by hand.

“It’s still a pretty robust map,” Young said. “There are some areas along the Platte and Missouri rivers that are missing a measurement either from spring 2019 flooding or COVID travel restrictions. That could leave some holes in an area that normally don't have a hole. But overall, it’s a pretty dense dataset.”

Other than a slight decrease in the total number of measurements collected, Young said the only other major pandemic-related difference to compiling the report was that he completed the hand-drawn maps of the state’s aquifers on his kitchen table rather than at his Hardin Hall office.

The process of completing the groundwater level map involves a combination of computer renderings that produce an initial interpolation of changes across the state’s aquifers, followed by a hand-drawn edit that corrects areas where Young knows aquifer boundaries exist, such as along the Platte River or Nebraska’s surrounding borders.

The report, created at the Conservation and Survey Division in the School of Natural Resources, was written, researched and produced by Young, Mark Burbach, Leslie Howard, Susan Lackey and Matt Joeckel. The report can be found at https://go.unl.edu/h6ke.

All of the maps found in the 2020 Nebraska Groundwater-Level Monitoring Report, as well as data from the individual wells that were measured, can be examined on an interactive website created by CSD. The portal to the interactive site can be found at http://snr.unl.edu/csd/map.



NDA Controlled Feedlot Program

To enhance Nebraska's cattle feeding industry, the Nebraska Department of Agriculture (NDA) is introducing the Approved Controlled Feedlot program.

NDA will immediately begin accepting applications from feedlots that are interested in becoming an Approved Controlled Feedlot. Enclosed, you will find information about the program as well as the application information.

One of the major advantages to becoming an Approved Controlled Feedlot is the ability to waive many of the interstate import requirements for specific diseases. Interstate individual identification requirements must still be met, in accordance with federal requirements under 9 CFR 86 as part of the Animal Disease Traceability Rule.

Feedlots that are designated by NDA as Approved Controlled Feedlots will allow the feedlot cattle to be: (a) confined to a dry lot with destination to slaughter only; or (b) moved to another controlled feedlot; or (c) moved to another destination state, while meeting the destination state's import requirements.

To become an Approved Controlled Feedlot, specific requirements will need to be met, and an inspection of the facility will need to be performed by NDA field personnel. Some of the requirements include record keeping of all cattle brought into and leaving the feedlot, maintenance and regular inspections of fence enclosures, and official individual identification of all cattle, to name a few. Approved Controlled Feedlots can also apply to be an NDA Approved Tagging Site, which is explained in another document. All the requirements will be enforced, and facilities inspected as necessary to check on compliance. Since several contagious disease requirements are waived, all cattle at an Approved Controlled Feedlot are subject to the requirements in the agreement including no allowance to be pastured or grazed.

Approved Controlled Feedlots must also have a Department of Environment and Energy permit in place. Upon successful completion of the inspection and explanation for an Approved Controlled Feedlot, a signature page will be completed by the feedlot personnel, the feedlot veterinarian, NDA and USDA. NDA does not require, but strongly recommends that Approved Controlled Feedlots develop a Secure Beef Supply plan to implement biosecurity in case of a foreign animal disease outbreak in the U.S.

Click here for more information and resources: https://nda.nebraska.gov/animal/feedlot/index.html.  



CLAAS Equipment Dealership Expands Service in Northeast Nebraska

Nebraska Harvest Center has announced plans to open a new dealership just east of Columbus, NE. Construction on the new ag equipment retail location has already begun and should be ready for business as early as September of this year.

The Columbus location joins four other Nebraska Harvest Center locations in Seward, Kearney, Wayne and Ogallala.

“We are excited to expand our footprint in Nebraska,” said Paul Westbrook, Complex Manager, Nebraska Harvest Center. “Providing our customers with superior sales and service is our number one goal. With this new location, we will be able to improve response times and support for a growing number of farmers in the area who have discovered the advantages of our CLAAS long line of equipment.”

However, according to Westbrook, the new 24,000 square foot facility is secondary to the team of talented sales, parts and service technicians the location plans to hire. “With the release of this announcement, we will begin hiring for all departments.”

“Nebraska is a critical market for us and is right in our ‘back yard,’” explained Eric Raby, President and General Manager – Sales for CLAAS of America. “Our North American headquarters and combine manufacturing facility are located in Omaha, just an hour and a half from the new Columbus location. Nebraska Harvest Center has built a sterling reputation for customer service that reflects well on our company and the equipment we manufacture.”

The new dealership will be located just east of Columbus off Highway 30 at 220 Road D, in Richland, NE. For more information including construction updates and employment opportunities, be sure to visit the website www.nebharv.com.



Webinar will explore carbon markets, impact on ag

Nebraska Extension will present a webinar on carbon markets and carbon banks that will explore their potential impact on Nebraska agriculture. It will be held on Thursday from noon to 1 p.m.

The Biden administration has stated a goal of achieving carbon neutrality in the U.S., through net-zero emissions of greenhouse gases, by 2050. Because agriculture can significantly increase soil carbon storage, some are experimenting with carbon offsets, where producers are paid for storing carbon.

Nebraska farmers and ranchers are becoming more curious about carbon markets, carbon offsets and carbon banking, with some producers already receiving payment offers for increasing carbon storage on their farm or ranch. This webinar will provide an introduction to carbon markets and carbon banks and look at the role that they may play in the state’s agriculture industry.

It will be led by Dave Aiken, professor and water and agricultural law specialist in the Department of Agricultural Economics at the University of Nebraska-Lincoln.

The webinar is presented as part of the Agricultural Economics Extension Farm and Ranch Management weekly series.

Registration is free at farm.unl.edu/webinars.



 CASNR Week celebration slated for April 12-14

The College of Agricultural Sciences and Natural Resources at the University of Nebraska-Lincoln will celebrate CASNR Week April 12-14. The 21st annual event celebrates the successes of all CASNR students, faculty, staff, and alumni.

“This year more than ever, we want to celebrate our entire CASNR Community,” said Meg Kester, Strategic Initiatives and Alumni Engagement Coordinator for CASNR. “CASNR Week has always been a way to highlight our college and what makes it special, but this year, we are especially thrilled to bring our community together in new ways.”  

CASNR Week Schedule:
All week
Food drive for a new East Campus Pantry. Look for donation bins across campus.  

April 12  
Cultivate Access Celebrating Diversity Difference Makers virtual event. Cultivate ACCESS invites you to a webinar on Monday, April 12 at noon. The webinar will feature CASNR community members who are leading by example in the space of Diversity, Equity, and Inclusion (DEI) in creative ways. Participants will also brainstorm ideas for engaging on DEI topics within their spheres of influence. Register at https://go.unl.edu/casnrcultivate.

April 13  
CASNR Coffee Club and The Global Hub Featuring Greg Ibach. The CASNR Coffee Club and The Global Hub are teaming up to bring you a special event for CASNR Week on Tuesday, April 13in the Nebraska East Union.  
    7:30 a.m.  – 9 a.m. – Free breakfast and coffee in the Arbor Suite (open to the first 45 people who arrive – no registration required)
    9 a.m. – 9:30 a.m. – Comments and Q&A with Greg Ibach – Great Plains Room A (registration required)  

Greg Ibach is a former undersecretary with the USDA. He now serves as the Under Secretary-in-Residence at IANR. Greg will talk about his journey from the farm to working in Washington, D.C. in Great Plains Room A. The first 40 people that RSVP can attend in-person, but we will be offering his talk virtually as well. You can RSVP here: https://go.unl.edu/coffeeclub.

CASNR Cool, Calm and Collected. Feeling stressed? Come to CASNR Cool, Calm and Collected on the East Campus Mall from 11:30 a.m.-1 p.m. to take a break, some deep breaths, and pick up your very own succulent to help you stick it out during this prickly time.  

April 14
CASNR Virtual Awards Recognition. Celebrate recipients of the Holling Teaching Awards, Nelson and Crowe Academic Advising Awards, and the von Bergen Award during this virtual awards celebration at 10 a.m. via Facebook Premier on the UNL College of Agricultural Sciences and Natural Resources Facebook page.  

CASNR Ice Cream Social. Free ice cream from 1-4 p.m. at the UNL Dairy Store.

For more information about CASNR Week, contact Meg Kester at 402-472-7909 or meg.kester@unl.edu.   



IFBF hosts niche market webinar on high tunnel and produce production

Iowa’s agricultural landscape is diverse, expanding beyond corn and soybeans into niche markets to meet consumer demands. To help spur interest in other areas of diversification, Iowa Farm Bureau Federation (IFBF) is hosting a niche market webinar, “Introduction to High Tunnel and Produce Production,” on Tuesday, April 13, at 1 p.m.

A high tunnel is a greenhouse constructed with large hoops covered by plastic or fabric. Crops inside a high tunnel can be planted directly into the soil or in raised beds. Because of the conditions created inside these structures, farmers can often prolong their growing season—increasing marketing opportunities.

The webinar features Iowa State University Extension Commercial Horticulture Field Specialist Joseph Hannan, who will share key considerations prior to constructing a high tunnel such as site selection and investment. He will also give insights into how to expand an existing farm through commercial fruit and vegetable production.

“Before COVID-19 hit, we saw an increase in local foods that only accelerated during the pandemic as attention turned more toward food safety. Consumers are interested in local foods and want to purchase produce and food from farmers they know and trust,” says Amanda Van Steenwyk, IFBF farm business development manager. “We’re excited to have Joe join us to showcase another innovative way for farmers to expand their farms and meet the needs of their local communities through high tunnel production.”

Those interested in this free webinar can register at www.iowafarmbureau.com/events.



USDA Announces Upcoming Changes to the World Agricultural Supply and Demand Estimates (WASDE) Rice and Soybean Tables

Starting with the May 12, 2021 release (issue No. 612), the following changes will be made to the World Agricultural Supply and Demand Estimates (WASDE) report:
    U.S. Soybeans and Products Supply and Use (page 15): “Biofuel” will replace “Biodiesel” in the soybean oil section, reflecting recent changes to the monthly biofuels data reported by the U.S. Energy Information Administration. The WASDE will follow soybean oil used for biofuel as reported in the Monthly Biofuels Capacity and Feedstocks Update - Table 2C (PDF, 287 KB).
    World Soybean Meal Supply and Use (page 29): Soybean meal supply and use for China will be presented separately.
    The U.S. Rice Supply and Use table (page 14): The table will include separate categories for U.S. imports of long-grain and combined medium and short-grain rice. The addition is made due to the significant rise in U.S. imports of long-grain and medium- and short-grain rice over the past decade.

The May WASDE template will be available on the WASDE report page by April 30.

The World Agricultural Supply and Demand Estimates (WASDE) report is prepared monthly by the USDA World Agricultural Outlook Board based on information from USDA and other domestic and foreign official sources. It includes forecasts for U.S. and world wheat, rice, and coarse grains (corn, barley, sorghum, and oats), oilseeds (soybeans, rapeseed, palm), and cotton. U.S. coverage is extended to sugar, meat, poultry, eggs, and milk.



The Value of Corn in the Pet Food Industry

April 11 is National Pet Day. There are many benefits to including corn in your pet’s diet, but have you ever wondered about the benefits that your cat or dog brings to the corn industry? In November a comprehensive study unpacked the $30 billion U.S. retail pet food industry, thanks to the Institute for Feed Education and Research (IFEEDER), the Pet Food Institute and the North American Renderers Association.

The study found that corn and corn gluten meal are the top two most used plant-based ingredients in pet food products. Corn is the dominant plant-based carbohydrate at 1,283,674 tons, and corn gluten meal is the dominant plant-based protein ingredient at 476,649 tons used on an annual basis. Thanks to Fido and Fluffy, the corn industry moved 1,958,061 tons of product, valued at a total of $438 million.

“Farmers and farm-product processors sell $6.9 billion worth of products to pet food manufacturers every year that are used as ingredients. Sales made by farmers and processors of farm products to pet food manufacturers stimulates further upstream economic activity, leading to the purchase of $5.3 billion of materials and services from farm suppliers providing necessary inputs such as seed, fertilizer, fuel, labor, machinery and repairs to produce high-quality products that are used as pet food ingredients,” cites the report.

Founded in 2009 by the American Feed Industry Association (AFIA), IFEEDER supports critical education and research initiatives that assure consumers a safe, healthy and sustainable food supply. The National Corn Growers Association (NCGA) partners with IFEEDER and the AFIA on research projects as well as feed and food industry efforts, such as the Association of American Feed Control Officials’ petition on Corn Gluten Meal and the current partnership on the U.S. Roundtable on Sustainable Beef Feed Task Force.

 “This first-of-its-kind research shows that there are nearly 550 diverse ingredients used in U.S. pets’ diets to provide complete and balanced nutrition at price points that fit shoppers’ budgets,” said Robert Cooper, IFEEDER’s executive director. “Collaborations on research like the pet food study allow us to leverage our resources and share information that helps allied organizations, like the National Corn Growers Association, amplify its outreach with decision-makers and consumer influencers, so they are more informed about how important commodities, such as corn, are in producing safe and nutritious food for both humans and their four-legged companions.”



National Dairy FARM Program and Cargill Partner to Offer Customizable Safety Review

The National Dairy Farmers Assuring Responsible Management (FARM) Program has partnered with Cargill to launch the Actionable Safety Review, a new online tool that enables dairy farmers to identify and review opportunities to improve safety on the farm.

“Safety is top of mind for dairy owners and operators, so often they are looking for ideas on what they can do to enhance their safety management,” says Nicole Ayache, senior director of sustainability initiatives at NMPF. “That’s why we’re excited about our partnership with Cargill and the Actionable Safety Review. It covers a set of important on-farm safety topics with practical advice for addressing each one.”

Farmers filling out the Actionable Safety Review are prompted to consider their own operations and make note of their approach to specific safety topics. The tool offers recommendations and resources for farmers to follow-up on those topics. Dairy farmers who complete the safety review will receive a copy of their responses to serve as a list of farm-specific action items designed to keep employees, farmers, and families safe on the dairy.

“At Cargill, our goal is to ensure every employee returns home safely to their loved ones each day. We also strive to make this happen on the dairies that we partner with, which is where the idea for an Actionable Safety Review originated from,” says Steve Halahan, dairy focus consultant and safety advocate for Cargill. “By outlining and reviewing safety protocols on your dairy, you make a commitment to focusing on safety first for your family and employees.”

As a thank you for their time and commitment to working safely, Cargill also will provide two high-visibility, reflective safety hats to dairy farmers who use the online tool during the month of April, or while supplies last.



While China Dominates Headlines, U.S. Grains Flow Globally

Sales to China continue to vastly outpace those to other U.S. corn and sorghum markets. Yet, behind the headlines, a half-dozen other countries and several emerging markets are also proving to be strong buyers of U.S. grains.

The U.S. Grains Council’s (USGC’s) Senior Director of Global Programs Cary Sifferath recently discussed what countries are setting a strong buying pace and and how the Council is working to develop and access a variety of overseas markets for U.S. producers.

“You never know when China may change things up; just as fast as they turn the buying on, they can shut things down for political or other reasons,” Sifferath said. “So, we’re always looking for and developing new markets, whether that’s six or 12 months out or even longer-term. It’s about what can we do to create new markets five or even eight years from now, even.”

The Council works to overcome market share issues and continue to develop new markets in other locations around the world.

“Vietnam, which is already a very big corn importer globally, imports about 11 million tons of corn a year or about 433 million bushels,” Sifferath said. “Egypt is another big corn importer, about 10 million tons or 394 million bushels a year. Even in the rest of North Africa, we’ve seen Tunisia, Algeria, Morocco, where we’ve worked for numerous years, come back into buying U.S. corn here lately. “

In addition to Mexico, which has been the number one U.S. corn export market for the last four years and has trade preferences under the U.S.-Mexico-Canada Agreement (USMCA), countries with which the United States has free trade agreements are also big buyers, according to Sifferath.

“All of the markets in the CAFTA-DR - the Central America Free Trade Agreement plus the Dominican Republic – are strong buyers this year. You’re looking at Guatemala, Costa Rica, Honduras, Panama, Nicaragua, plus the Dominican Republic. I cluster that whole Central America market together. It’s a very significant market, worth about 4-to-4.5 million tons, or about 158 to 177 million bushels.

“Peru, where we also have a free trade agreement, used to be a top-five market for us. It kind of dropped off over the last year and this year, in part because Peru has been hit very hard by COVID-19, although they’re starting to come back from that now,” Sifferath added.

While trade dynamics change from year to year and markets fluctuate, the Council continues to look for ways to fulfill its mission of developing markets, enabling trade and improving lives across a diverse set of buyers.



CoBank Quarterly: U.S. Economy Gathers Momentum, Policy Decisions Will Reshape the Future  
Infrastructure plan would have far-reaching impacts on rural industries

The U.S. economy continues to outperform expectations as stimulus funds are fueling robust consumer spending. Consensus forecasts point to 7% GDP growth for 2021, the fastest rate of expansion since 1984. Inflation is inevitable, however, as the 2020 price declines will widen year-over-year inflation over the next two quarters, and new upward price pressure should push headline inflation above 3%.

The transition to a less COVID-restricted world has begun. But for the economy and rural industries, there will be no going back to pre-COVID conditions. A transformed policy environment and awakened commodity markets are making way for a whole new operating environment, according to the new Quarterly report from CoBank’s Knowledge Exchange.

“The policy focus in Washington is shifting from crisis management to building for the future,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange division. “And the outcome of the president’s infrastructure plan will have substantial implications for rural water, power and broadband providers. Hundreds of billions of dollars in funding would reshape these industries and intensify the current focus on climate resilience and social equity.”

The cyclical turn in grain pricing, driven by strong demand and tight stocks, continued during the first quarter of 2021 and has picked up further gains ahead of spring planting. Accumulated grain exports to China have been very strong. While the backdrop for the grain and oilseed complex is positive, there are issues worth monitoring that could result in price volatility in the coming months. A recent surge of African Swine Fever (ASF) in Asian countries could temporarily slow soybean demand.

Farm supply retailers are positioned to benefit from an exceptionally strong spring agronomy season, outpacing fall and spring 2020. Financially strong U.S. crop farmers should increase spending given a 3.1% increase in planted corn, soybean and wheat acres. Fertilizer prices rose 42% during Q1 and are now 96% above the trough level in May 2020. While much of the Midwest Corn Belt is free of drought, some areas of concern surfaced in late March.

The U.S. fuel ethanol sector has recovered, with production running near 90% of pre-COVID levels. The industry is adapting to new short-term and long-term realities, including changes in driving and work habits, policy directives on ethanol and fossil fuels and increased adoption of electric vehicles. Operating margins averaged near $0.10/gallon but rose sharply in March to above $0.25/gallon as fuel ethanol prices rose and natural gas prices fell.

U.S. chicken prices started 2021 on a high note, climbing over 20% in the first quarter. These prices offset the double-digit rate of feed cost inflation and brought spot margins well into positive territory. The counts of eggs set and chick placements are a leading indication that chicken production will remain at current levels, so chicken prices continue to look strong through the summer. Expected increases in vacation and business travel this summer will boost food service sales, benefiting the chicken sector.

U.S. beef demand has been incredibly strong in the first quarter despite the challenges in foodservice and the away-from-home dining sector. Strong demand and expectations for limited supply growth in the back half of 2021 have driven up cattle futures. The USDA expects beef production to decline by 3.5% in the second half of 2021, which has helped lift cattle prices nearly 15% above year-ago levels. Packer margins remain elevated, but producers are expected to realize better margins in the second half of 2021.

Strong first quarter demand for pork, coupled with indications of limited supply growth, has lifted hog sector profitability to levels not seen in many years. Concerns over feed and other cost inflation has taken a back seat to optimism for another year of strong pork exports and robust domestic demand as U.S. consumer behavior slowly returns to normal. China has slowed its hog herd rebuilding due to increased ASF cases this winter, helping drive the positive outlook for the remainder of the year.

The pace of U.S. dairy exports started 2021 on a weaker note as exporters continue to struggle with trade logistics, specifically with the scarcity of containers, port congestion and rising transportation costs. Cheese and butter stocks continued their rapid ascent, climbing 5.4% and 16.8% year-over-year respectively, for February. U.S. milk production rose in January and again in February, giving dairy processors ample milk supplies for processing. Cow numbers in February reached the highest level in 30 years following months of ongoing expansion.

Combined cotton and rice planted acreage is expected to fall for the third consecutive year in the U.S. according to USDA’s latest projections, as acres shift out of pima cotton and all classes of rice. The surge in upland cotton prices has blunted losses in its acreage. Last year’s rally in refined sugarbeet prices also forestalled losses in sugarbeet acreage. The recovery in U.S. foodservice demand remains an unknown for both rice and sugar, while China remains critical for U.S. cotton demand.

Tree nut exports reached an all-time high with the peak shipping now drawing to a close. However, container shortages and port constraints are estimated to have delayed U.S. tree nut export shipments 10%-20% in the opening months of the year. The lack of movement could potentially translate into higher-than-expected tree nut inventories at the end of the marketing season. Drought conditions in California are raising concerns of limited water allocations in the forthcoming growing season.

February’s polar vortex refocused attention on deficiencies in U.S. power, energy and water infrastructure, and how it is affected by climate change. Widespread failures in energy systems tend to negatively impact water systems. Consequently, any climate mitigation program in the U.S. must account for water and energy system dependencies. President Biden, delivering on his “Build Back Better” platform promise, has announced the American Jobs Plan — a $2 trillion infrastructure and economic modernization bill, which includes a major focus on climate change.

The recently enacted American Rescue Plan Act included $20 billion for broadband availability and affordability and the American Jobs Plan includes $100 billion to bridge the digital divide. Details are not finalized, but President Biden wants to prioritize funding for nonprofits, cooperatives and local governments. The ultimate outcome of the infrastructure plan will have substantial implications for rural water, power and broadband providers.



Koch Agronomic Services Acquires Compass Minerals' North American Micronutrient Assets

Koch Agronomic Services, LLC (Koch) reached agreement with Compass Minerals (NYSE: CMP) to purchase Compass Minerals' North American micronutrient assets, the global intellectual property rights, with trademarks and patents, and certain other assets associated with the Wolf Trax®, Rocket Seeds® and Hydro Bullet™ product platforms.

Through the acquisition of the micronutrient assets, Koch, a global leader in nitrogen management additives, will expand its ability to help growers across the world improve efficiency, utilization, and uptake of nutrients beyond nitrogen.

"At Koch, we strive to provide solutions to make every ton of nutrient applied more efficient than it is today, and this agreement allows us to offer a platform of innovative, efficiency solutions complementary to our existing products," said Steve Coulter, senior vice president of Koch. "We are excited to enter the micronutrient business with three product lines that fit our customers' desire to improve distribution of micronutrients across the field in conjunction with dry fertilizers, as seed treatments and as foliar applications."

Koch currently markets and distributes a proven portfolio of enhanced efficiency fertilizer products in more than 55 countries and looks forward to continuing the growth and innovation of the micronutrient product portfolio.  

"Compass Minerals has been proud to grow the Wolf Trax product line and introduce both Rocket Seeds and Hydro Bullet into the specialty plant nutrition market," said Kevin S. Crutchfield, Compass Minerals president and CEO. "We're excited to see how these three innovative micronutrient product lines can continue to develop in the hands of a strong sector leader like Koch."

The transaction is expected to close in April 2021, subject to customary closing conditions.