SEEDBEDS FOR PLANTING GRASSES AND ALFALFA
– Ben Beckman, NE Extension
Those looking to get grass or alfalfa seed into the ground this spring are doing so now. Before you fill up the drill and head out to plant, remember to prep the seedbed first!
When doing a planting of alfalfa or grass, seedbed preparation often plays a big role in germination success. Instead of just pulling into your field and planting, first get off your tractor and walk across the field. As you walk, look back at your footprints. Do you sink in more deeply than the soles of your shoes or boots? If so, your seedbed may be too soft.
Another technique is to bring to the field a seedbed testing kit. Now, most folks also call this kit a basketball, but a basketball tests seedbeds better than any other tool I know. Try to bounce the basketball in your field. It should be easy to bounce that basketball on a firm seedbed. If you can't bounce the ball easily, don't plant yet. Firm that seedbed even more with a flat harrow, a roller, or maybe even irrigate.
Why so much effort for a seedbed? Well, when small seeds germinate their first roots must come into immediate contact with moisture and nutrients in the soil if those seedlings are to survive and grow rapidly. Loose seedbeds can have up to 50 percent dead airspace in the seeding zone. First roots that emerge into that dead airspace often do not live, and your stand will suffer. A firm seedbed reduces this dead airspace, which helps you get thicker stands that develop more rapidly.
Do you want better, faster developing grass and alfalfa stands with less risk of failure? A firm seedbed is your first step.
HUSKER UNDERGRADS EARN NATIONAL AWARD FOR GRAIN ROBOT
Two University of Nebraska–Lincoln engineering students have been awarded a Lemelson-MIT Student Prize for their invention designed to keep grain farmers safe.
Seniors Ben Johnson, an electrical engineering major from Aurora, and Zane Zents, a computer engineering major from Omaha, pitched the plan for their product, Grain Weevil, for the national award. They were chosen alongside three other undergraduate teams and four graduate winners. They will receive a $10,000 prize.
The Grain Weevil is a small robot designed to maintain grain, eliminating the need for farmers to enter bins, which can be dangerous and even fatal.
The idea for the Grain Weevil came from a conversation between Johnson’s father, Chad, and an Aurora farmer. Ben Johnson was an underclassman at the time and had just completed his first major robotics project. Chad Johnson was talking about it with one of his friends from church.
“We showed him this robot and he said, ‘Hey, if you can build that robot, you could build me a robot to stay out of the grain bin,’” Chad Johnson said.
With the idea in place, the Johnsons got to work. Ben brought in his friend and former roommate Zents, who is also a computer science and mathematics major at the University of Nebraska at Omaha, to round out their skill set. After two years of trials and hundreds of hours of work, they finished the robot.
The latest version of the Grain Weevil is a 30-pound remote-controlled robot that uses augers and gravity to level grain and redistribute it throughout the bin. It can be transported by backpack and is waterproof and dustproof. If it is accidentally buried, it can dig itself out of up to 5 feet of grain.
Receiving the Lemelson-MIT award has shown Johnson and Zents that their idea has been accepted by some of the best and brightest minds in the STEM world. After graduation, the two plan to work on the Grain Weevil full-time in hopes of bringing it to farmers across America.
The pair are passionate about their product — and grateful that the Lemelson-MIT judges saw that fire.
“We're trying to keep farmers safe. We're trying to keep our neighbors — our communities — from getting hurt,” Zents said. “I think they saw that passion, they saw the message and they let us succeed.”
USDA Farm Service Agency to Present on CFAP 2, Pandemic Assistance Program During May 6 Webinar
Nebraska USDA Farm Service Agency (FSA) will provide an overview of assistance available through the Coronavirus Food Assistance Program 2 (CFAP 2) during a webinar scheduled for Thursday, May 6. The webinar is part of the University of Nebraska Lincoln’s Farm and Ranch Management series. It will begin at 12 p.m. CT, and those interested in listening can register at farm.unl.edu/webinars.
Nebraska FSA Production and Compliance Programs Chief Cathy Anderson and Nebraska Extension Policy Specialist Brad Lubben will combine to provide an overview of CFAP 2 as a part of the Pandemic Assistance for Producers initiative (PAP). Both have been announced recently.
“FSA has a role in parts of the Pandemic Assistance for Producers initiative and recently began implementing updates to CFAP as part of PAP,” said Nebraska FSA Acting State Executive Director Tim Divis. “This includes reopening the CFAP 2 application period to reinforce the opportunity for all eligible farmers and ranchers to apply for this assistance.”
Persons with disabilities who require accommodations to attend or participate in the webinar should contact the Nebraska FSA State Office at (402) 437-5581 or Federal Relay Service at 1-800-877-8339, or email bobbie.krizwickham@usda.gov by Monday, May 3.
Iowa Farm & Biofuel Leaders Call for Progress on E15
Iowa’s top biofuel and farm advocates today urge Iowa lawmakers to approve H.F. 859, legislation to ensure all Iowans can benefit from access to E15 at the pump by 2028. The following joint statement was issued by Growth Energy, Iowa Corn Growers Association, Iowa Ethanol Producers Association, and POET:
“Every Iowa driver should have the freedom to choose E15, which will provide fuel savings and is made from corn harvested on Iowa farms. We enthusiastically support the work of Governor Reynolds and the Legislature to get Iowa on the road to E15.
“E15 is already popular with consumers, compatible with today’s infrastructure, and saves motorists an average of five cents per gallon in Iowa. Expanding E15 across the state will grow corn markets by 23 million bushels, inject $140 million into the state’s economy, and save Iowa motorists an additional $72 million each year. Now is the time to act, and we’re counting on Iowa lawmakers to lead the nation by ensuring access to E15 statewide.
“We hope leaders will vote to advance this important legislation, which has strong bipartisan support in the Iowa House thanks to the leadership of Rep. Lee Hein and other biofuel champions. We urge House and Senate leaders to move quickly to send this bill to Governor Reynolds, who has made this legislation a top priority.”
Can Small Grain, Soybean Relay Intercropping Be Successful in Iowa?
Succeeding with small grain, soybean relay intercropping in Iowa is the topic of an Iowa Learning Farms webinar at noon on Wednesday, May 5.
Small grain, soybean relay intercropping is the next step after using small grains for cover crops. Mark Licht, assistant professor in agronomy and cropping systems specialist with Iowa State University Extension and Outreach, will explain this practice and its benefits.
Relay intercropping is a way to extend active plant growth after corn and before soybean to achieve soil health and nutrient loss reduction benefits similar to soybean. Growth of the small grain crop is extended through seed production to also provide economic value, which is a missed opportunity when small grains are used solely as a cover crop.
Small grain seed production can be used for livestock feed rations and niche food markets. While soybean and wheat production considered individually may be slightly lower compared to optimized sole crop production, a relay intercropping system results in greater land use equivalency.
“Relay intercropping is a system that has potential to be used across Iowa in an effort to diversify and provide resiliency to cropping systems,” said Licht. “While relay intercropping can be riskier, using a relay intercropping system can diversify farm income while providing soil health and nutrient loss reduction benefits.”
Licht’s research focuses on corn and soybean production systems and ways to incorporate conservation practices into those systems.
Webinar Access Instructions
To participate in the live webinar, shortly before noon on May 5:
Click this URL or type this web address into your internet browser: https://iastate.zoom.us/j/364284172.
Or, go to https://iastate.zoom.us/join and enter meeting ID 364 284 172.
Or, join from a dial-in phone line by dialing +1 312 626 6799 or +1 646 876 9923; meeting ID 364 284 172.
The webinar will also be recorded and archived on the ILF website, so that it can be watched at any time.
A Certified Crop Adviser board-approved continuing education unit has been applied for, for those who are able to participate in the live webinar. Information about how to apply to receive the CEU will be provided at the end of the live webinar.
Virtual Forage Field Day to Feature Annuals
Annual forages can provide flexibility when managing forage supply, whether filling forage production gaps or serving as a primary forage source.
Learn more about annual forages and integrating them into a cropping rotation in a virtual field day set for June 3 beginning at 8:30 a.m., hosted by Iowa State University Extension and Outreach.
"We’ve seen an interest from producers wanting to integrate both cool and warm season annual forages into their farming operation," said Erika Lundy, beef specialist with ISU Extension and Outreach. "However, many questions still remain regarding which forage species is best for a given situation or farm goal as well as their nutritional value and yield potential."
The event will highlight a research project evaluating different cool-season annual forage species in terms of forage nutritional value, yield potential and practical considerations for integrating annual forages into cropping rotations. To learn more about this project and what's been learned, plan to attend this virtual field day, which will feature a tour of the annual forage plots at outlying Iowa State University research farms.
There is no cost to participate and the field day is open to all. However, preregistration is required prior to the event. To register, go to www.aep.iastate.edu/forage. Once registered, participants will receive a confirmation email with the link to join, which will be provided through Zoom. If you don't have this app on your computer or device, you'll want to download and install it for the best quality.
Participants may join through their web browser, mobile phone or tablet and will need to download a free app prior to joining. Participants should join the webinar 10 minutes in advance to ensure connections and software are working correctly.
For more information, questions, or if you need assistance with registration contact Iowa Beef Center at beefcenter@iastate.edu or 515-294-BEFF (2333).
Funding for this project provided is by the Iowa Nutrient Research Center.
The Zoom download is available through the App Store for iOS devices https://itunes.apple.com/us/app/id546505307 and through Google Play for Android https://play.google.com/store/apps/details?id=us.zoom.videomeetings.
Fertilizer Price Increases Slow After Months of Sharp Gains
Retail fertilizer prices continued to increase the third week of April 2021, albeit at a slower pace, according to sellers surveyed by DTN. While all eight of the major fertilizers were higher compared to a month earlier, no fertilizers were significantly higher, which DTN designates as 5% or more. Increases fell between 1% and 4%.
UAN28 and UAN32 increased the most, about 4% each. UAN28 cost an average of $348 per ton, while UAN32 was $391/ton. Anhydrous increased 3% to $707/ton. With 2% increases, urea had an average price of $510/ton, while 10-34-0 was $612/ton. DAP had an average price of $627/ton, MAP $703/ton and potash $432/ton, an increase of 1% over last month.
On a price per pound of nitrogen basis, the average urea price was at $0.55/lb.N, anhydrous $0.43/lb.N, UAN28 $0.62/lb.N and UAN32 $0.61/lb.N.
With retail fertilizer prices moving higher over recent months, all fertilizers are now higher in price from a year ago. Potash is now 17% more expensive, 10-34-0 is 31% higher, urea is 32% more expensive, UAN32 40% higher, anhydrous is 44% more expensive, UAN28 is 47% higher, DAP is 53% more expensive and MAP 62% is higher compared to last year.
USDA Improves Livestock Crop Insurance Policies with New Options
The U.S. Department of Agriculture is updating livestock insurance policies to improve options for producers and to create additional opportunities for producers to participate. USDA’s Risk Management Agency’s (RMA) updates to the Dairy Revenue Protection (DRP) and Livestock Gross Margin (LGM) policies will be effective for the 2022 and succeeding crop years.
“We are always looking for ways to improve the insurance program and coverage for our producers,” said RMA Acting Administrator Richard Flournoy. “We strongly feel that these updates will benefit producers and their dairy and livestock operations in the years to come.”
Updates to DRP
DRP has been RMA’s most successful livestock product. In just its second year, it covered about 30% of milk production. It provided critical protection against unexpected decreases in prices, due to COVID and other causes, paying around $478 million to dairy producers.
The changes for the 2022 crop year include:
Ensuring the Class Pricing Option remains available for purchase even when either the Class III or Class IV milk price is not published.
Relaxing records requirements by allowing monthly total pounds of milk and milk components (butterfat and protein) to be acceptable records instead of daily.
Modifying weekend sales period to end on Sunday at 9 a.m. Central Time.
Updates to LGM
LGM is available for cattle, dairy, and swine producers and provides protection against loss of gross margin (market value of livestock minus feed costs). The LGM programs have also seen an increase in participation over the last year. The total insured livestock and livestock products increased approximately 103% from 2019 to 2020.
The changes for the 2022 crop year include allowing producers to purchase coverage on a weekly basis instead of monthly, which will allow producers to be more effective at managing the risks to their operations.
Additional Opportunities
In addition to DRP and LGM, another insurance options for livestock producers is Livestock Risk Protection (LRP), which is available for feeder cattle, fed cattle, and swine. It provides protection against declining market prices. Recent changes, which include increased head limits and additional subsidy increases, have resulted in a 1,000%-plus increase in program participation compared to the 2020 crop year.
Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available online using the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov.
The American Families Plan Honors America’s Family Farms
The American Families Plan includes critical tax reform to ensure that the wealthy pay their fair share of taxes in order to finance essential investments in workers and families, including childcare, nutrition, higher education and more. One of those reforms is a change in the way capital gains are treated in our tax system so that, for people making over $1 million, the tax system no longer favors income from wealth over income from work. The plan won’t raise taxes on anyone making less than $400,000 a year.
Part of this plan to make sure the wealthy pay their fair share is a proposal to close the “stepped-up basis” loophole for wealthy estates so that enormous fortunes do not completely escape taxation. Under the proposal, unrealized capital gains (those that have never been previously taxed) are taxed at death above $2 million in gains per couple. But this won’t affect family farms that stay in the family.
Under this proposal, estimates indicate more than 98% of farm estates will not owe any tax at transfer, provided the farm stays in the family. The tax the remaining less than 2% would owe, would be on their non-farm assets.
The President recognizes the importance of agriculture and family farms to the American economy and way of life. He also recognizes the risks and economic challenges unique to agriculture, family farms and ranching operations across America. The Biden Administration is committed to American agriculture, family farms, ranches and the rural way of life. The American Families Plan protects family farms and ranches in two key ways:
No capital gains taxes at death for family farms. This plan includes a special protection for family-owned farms and businesses. It defers any tax liability on family farms as long as the farm remains family-owned and operated. No tax is due if the farm stays in the family. No one should have to sell a family farm they inherit to pay taxes and the President’s tax reform guarantees that.
$2 million exclusion from increased capital gains for all married couples. This plan also excludes the first $2 million of gains per couple ($2.5 million if the farm also includes the family home) from capital gains tax and heirs continue to get step up in basis on those first $2 million in gains. If an heir decides to sell the family farm, the first $2 million in gains is tax free.
How the President’s Capital Gains Reforms Affect Family Farms:
A married couple with $900,000 of farm gains and $200,000 of non-farm gains passes the farm onto their children. No capital gains taxes are owed, even if they sell the farm because the $1.1 million in gains are below the $2 million per-couple exemption.
A married couple with $3.0 million of farm gains and $250,000 of non-farm housing gains passes the farm onto their children. No taxes due as long as the children keep the family farm.
The President’s capital gains reforms are a key part of building a tax code that rewards work, and not wealth. The American Jobs Plan and the American Families Plan are once-in-a-generation investments in our nation’s future. The American Jobs Plan will create millions of good jobs, rebuild our country’s physical infrastructure and workforce, and spark innovation and manufacturing here at home. The American Families Plan invests $1.8 trillion in our children and our families—helping families cover the basic expenses that so many struggle with now, lowering health insurance premiums, cutting child poverty, and producing a larger, more productive, and healthier workforce in the years ahead. Together, these plans reinvest in the future of American families, American workers, and the American economy.
NCBA Stands Ready to Fight for Sound Tax Policy
In his American Families Plan, President Biden targets several provisions of the tax code to raise approximately $1.5 trillion in revenue over the next 10 years. The National Cattlemen's Beef Association (NCBA) has long advocated for sound tax policy for rural America.
"Family-owned cattle operations, no matter the size, are the backbone and economic drivers of rural economies across the U.S. Preserving long-standing tax provisions such as stepped-up basis and like-kind exchanges is critical when considering the financial viability of farms and ranches, as well as the ability for the next generation of producers to carry on the family business and conserve the land that has been in their family for generations," said Danielle Beck, NCBA Senior Executive Director of Government Affairs.
The American Families Plan would repeal the deferral of gain for real estate like-kind exchanges for gains greater than $500,000 and eliminate stepped-up basis for gains in excess of $1 million ($2.5 million per couple “when combined with existing real estate exemptions”) and tax said gains on any property not donated to charity. According to the plan, the reform will be designed “with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.”
“When considering how to offset the cost of a comprehensive infrastructure package, it is essential that Congress preserve sound tax policies for family-owned agricultural operations. We are committed to holding Members of Congress accountable for legislation that will not adversely impact the viability of farm and ranch businesses, or the next generation's ability to continue to sustainably produce an abundant food supply,” Beck said.
“To be clear, we firmly believe that it would be irresponsible to pay for an infrastructure bill on the backs of farmers and ranchers and with that, counterintuitive with this Administration's conservation agenda. These provisions in the tax code are a determining factor in whether farmers and ranchers access to land is maintained for generations to come, or if that land is fragmented and further threatened by conversion and development, or paved over outright for strip malls and shopping centers,” Beck continued.
NCBA stands ready to work on both sides of the aisle to ensure that Members of Congress understand the needs of cattle producers in regard to tax policy. We are looking forward to continued conversations with lawmakers through extensive grassroots engagement.
NAWG President Responds to Joint Session Speech
Tonight, President Joseph Biden delivered his remarks before a Joint Session of Congress. NAWG CEO Chandler Goule provided the following statement in response:
“While the President addressed many issues of importance to the American people, we are eager to hear more about agricultural-related policies, specifically how we can improve farm program delivery and advance a trade agenda that ensures a level playing field for wheat growers. However, what our farmers saw in President Biden’s American Families Plan earlier today includes changes in the stepped-up basis, which raised a lot of questions in wheat country.
“We understand the American Families Plan’s goal is to target the ultra-wealthy and corporations who are able to evade taxes. However, farmers have several concerns about how changes to stepped-up basis and higher capital gains taxes on inherited assets could negatively impact families looking to pass along the farm to the next generation. Although the President’s plan says these reforms will be designed with protection in mind for family-owned businesses and farms, we want more details about how this would be achieved.
“The new administration plans to address climate-related issues by implementing environmentally-friendly practices. Last week, NAWG launched the new Special Climate and Sustainability Committee. The committee will work together to review wheat sustainable practices that benefit farmers in diverse climates and guide the development of NAWG policy priorities on climate policy. With the committee’s recommendations, NAWG will continue to work with Congress to educate the Hill on the progressive and sustainable tactics farmers practice every day.
“As the Administration considers a new approach on the world stage, let’s make sure that we continue to work on trade deals that develop, maintain, and expand international markets that keep American wheat producers in a strong position.
“NAWG looks forward to continuing to work with the Administration on ways to improve the livelihood of the American wheat farmer.”
Biden Outlines Priorities for Economic Recovery, Immigration Reform, and Climate Action During Congressional Address
During his first joint address to Congress, President Joe Biden tonight highlighted the progress the United States has made on pandemic recovery and laid out his strategy to create additional jobs and lift more families out of poverty. The linchpin of that strategy is the American Families Plan, a comprehensive package that would invest $1.8 trillion in education, childcare, nutrition assistance, and paid leave.
A longtime advocate of strengthening the nutrition safety net, National Farmers Union (NFU) was heartened by the president’s attention to food insecurity, especially in light of the added challenges caused by the pandemic. “Though the issue of hunger has received a lot of attention over the past year, it certainly isn’t a new problem, and it won’t just disappear when the pandemic ends,” said NFU President Rob Larew. “Fortunately, we already have a safety net to catch families when money is tight – but it isn’t strong or wide enough to support everyone who needs help. President Biden’s bid to expand free school meals and summer EBT is an important step towards reinforcing our existing system so that it can accommodate all Americans experiencing food insecurity.”
To offset the cost of the plan, President Biden is proposing an array of tax reforms, including the elimination of stepped-up basis. In an overview, the White House promised that such a change would “be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.”
Larew indicated that he had reservations about the pay-for provisions and sought more information. “While we support many of the recommendations in the American Families Plan, we have questions about how these tax proposals will impact our farms and ranches,” he said. “The devil is in the details.”
President Biden also emphasized the necessity for immigration reform, asking Congress to offer undocumented immigrants a path to citizenship by passing his U.S. Citizenship Act of 2021. Under the bill, farm workers would be fast-tracked for naturalization and would be granted greater protections.
NFU expressed its approval of the bill when it was first released in January, saying that it balances the interests of businesses with those of workers, and has continued to promote practical, compassionate immigration policy in the intermediate months. “We’re pleased that President Biden has kept immigration reform among his top priorities,” said Larew. “It’s very clear that our farm labor system is falling short; it is not providing a steady stream of qualified workers for agricultural employers, nor is it offering necessary protections or a clear future for agricultural workers. Because the U.S. Citizenship Act seeks to meet both parties’ needs, it would go a long way towards building the farm labor system we all deserve.”
In addition to economic recovery and immigration reform, climate leadership was a focus of the address. Included on the president’s list of recommendations for action was incentivizing climate-smart agricultural practices, an approach backed by NFU and many other farm groups. “Farmers know that they can be part of the climate solution, and we’re glad to have an ally in the White House who recognizes that potential,” Larew stated. “We hope these statements of support are followed by immediate and aggressive action from both Congress and the administration to provide farmers with the tools they need to respond to this crisis.”
Dates Announced for Export Exchange 2022
A joint statement from U.S. Grains Council President and CEO Ryan LeGrand, Growth Energy CEO Emily Skor and the Renewable Fuels Association (RFA) President Geoff Cooper regarding the Export Exchange 2022, Oct. 12-14, 2022 in Minneapolis, Minnesota:
“COVID dictated we cancel Export Exchange in 2020, and sadly, we have officially canceled it once again for 2021. However, we are excited to offer Export Exchange in 2022. This premier event allows overseas attendees the opportunity to build relationships with U.S. suppliers of distiller’s dried grains with solubles (DDGS), corn, sorghum, barley and other commodities, resulting in hundreds of millions of dollars in grain sales. We look forward to addressing issues facing U.S. exports, including market dynamics, trade policy, risk management and other timely topics as we educate global buyers and build awareness of U.S. grains and co-products.”
Export Exchange, the biennial event co-sponsored by the Council, RFA and Growth Energy, is expected to bring together 200 international buyers and end-users of coarse grains and co-products, including DDGS, with approximately 300 U.S. suppliers and agribusiness representatives.
More information will be distributed in the coming months to members of the grains industries and will be made available online at www.exportexchange.org.
Weekly Ethanol Production for 4/23/2021
According to EIA data analyzed by the Renewable Fuels Association for the week ending April 23, ethanol production ticked up 0.4%, or 4,000 barrels per day (b/d), to 945,000 b/d, equivalent to 39.69 million gallons daily. Production was 76.0% above the same week last year when the effects of the pandemic were reflected but was 7.7% below the same week in 2019. The four-week average ethanol production rate declined 0.5% to 951,000 b/d, equivalent to an annualized rate of 14.58 billion gallons (bg).
Ethanol stocks tightened by 3.5% to 19.7 million barrels, the lowest volume since October. This is 25.1% below a year-ago and 13.0% below this time in 2019. Inventories drew down across all regions except the West Coast (PADD 5).
The volume of gasoline supplied to the U.S. market, a measure of implied demand, decreased 2.5% to 8.88 million b/d (136.08 bg annualized). Gasoline demand was 51.5% above a year ago but was 3.8% below the same week in 2019.
Refiner/blender net inputs of ethanol eased by 1.1% to 880,000 b/d, equivalent to 13.49 bg annualized. This was 50.9% above a year ago but was 5.2% below 2019.
There were zero imports of ethanol recorded for the nineteenth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of February 2021.)
Ag exporters seek remedy for shipping crisis
As the container shipping crisis continues its crippling effect on U.S. exporters, the Specialty Soya and Grains Alliance joined nearly 300 agricultural and forest product associations and companies – including several SSGA members – this week in signing on to a letter to Transportation Secretary Pete Buttigieg, urging immediate intervention to remedy the situation.
“We need action now,” the letter states, “not additional studies.”
SSGA agrees, as U.S. exporters and their access to foreign markets must be protected.
The letter requests that the Department of Transportation assist the Federal Maritime Commission (FMC) “in expediting its enforcement options” and “consider its existing authorities” to determine how it can assist U.S. exporters and the ag producers they serve in their transportation needs.
For more than six months, U.S. ag exporters, including SSGA members who supply Identity Preserved soya and specialty grains for food manufacture, have suffered under unreasonable practices by ocean carriers. These practices include the declining of U.S. agricultural and other exports in favor of sending empty containers back overseas in order to keep up with the massive demand for consumer imports.
The imbalance has caused congestion, delays and even cancelation at the ports, and carriers have failed to provide accurate notice of arrival, departure and loading times. Carriers have also imposed unreasonable, punitive financial penalties on exporters, who, through no fault of their own, have missed loading windows. This is in violation of detention and demurrage guidelines set forth by the FMC. SSGA and other associations have previously supported FMC’s investigation into these practices.
It has been estimated that $1.5 billion in ag exports has been lost during this crisis, which has come on the heels of a pandemic that has also severely injured the market.
With no sign of the crisis letting up in the immediate future, SSGA is hopeful that Secretary Buttigieg will act upon this increasingly dire situation. Our members, allies and partners at the Agriculture Transportation Coalition have specific measures to propose and are requesting the opportunity to present them.
ADM Reports First Quarter Earnings of $1.22 per Share, $1.39 per Share on an Adjusted Basis
Q1 net earnings of $689 million; adjusted net earnings of $783 million
Adjusted segment operating profit up 86 percent year over year
Calendar year outlook for 2021 substantially improved; expect significant EPS growth and another record year
ADM (NYSE: ADM) today reported financial results for the quarter ended March 31, 2021.
“ADM delivered an outstanding first quarter, building on our great 2020 performance. As expected, we achieved strong earnings spanning all three of our businesses, and a sixth consecutive quarter of year-over-year adjusted operating profit growth,” said Chairman and CEO Juan Luciano.
“Our team executed well across the board, as we continued to find new and innovative ways to meet the evolving needs of our customers. We are seeing clear, favorable demand trends for many of our products, and we expect that pattern to continue as vaccine rollouts accelerate and restrictions ease.
“We are also moving into the next phase of our strategic transformation, which will sharpen our focus on two key pillars — Productivity and Innovation — to enhance our capabilities to deliver outstanding execution, serve customer needs, and power growth and profitability.
“Taking all of these factors into account, our outlook today is even more optimistic than what we shared at the beginning of the year. We expect significant year-over-year growth in earnings across all three of our businesses in 2021, and continued sustainable growth in the years to come.”
Quarterly Results of Operations
Ag Services & Oilseeds achieved a record Q1, with operating profits 84 percent higher year over year.
Ag Services results were significantly higher versus the first quarter of 2020. In North America, great execution helped capitalize on strong Chinese demand, resulting in an outstanding performance. South American origination results were down significantly due to lower farmer selling versus the prior year. Lower margins, including impacts from the slightly delayed harvest and higher freight costs, also affected South American results. Results for the quarter were impacted by approximately $75 million in negative timing effects related to ocean freight positions; those impacts will reverse in the coming quarters.
Crushing delivered its best quarter ever, as the business leveraged its diversified global footprint to capture strong execution margins in both soybean and softseed crushing, driven by robust vegetable oil demand and tight soybean stocks. Net timing impacts for the quarter were minimal.
Refined Products and Other results were higher year over year. While overall volumes were down due to pandemic impacts, margins were stronger in both North America and EMEAI refined oils. Global biodiesel results were lower year over year.
Equity earnings from Wilmar were lower versus the prior-year period.
Carbohydrate Solutions results were significantly higher than the prior-year period.
Starches and Sweeteners, including ethanol production from our wet mills, achieved significantly higher results. The business managed risk exceptionally well, capitalizing on rising prices in the ethanol complex and favorable co-product values in an industry environment of improving margins and falling inventories. Corn oil results were significantly higher than the previous year, which had been impacted by substantial mark-to-market effects. In general, though demand for sweeteners and flour by the foodservice sector remained below the prior year, there were signs of acceleration in March.
Vantage Corn Processors results were substantially higher, driven by improved margins on the distribution of fuel ethanol and strong performance in USP-grade industrial alcohol.
Nutrition delivered solid year-over-year operating profit growth.
Human Nutrition results were significantly higher than the prior-year quarter. Flavors had an exceptional quarter, driven by strong sales across various market segments, especially beverages. Favorable product mix in North America, improved margins in EMEAI, and accelerated income from a customer agreement also contributed to results, partially offset by certain specific expenses. Specialty Ingredients results were lower, primarily driven by demand factors, including the effect of pantry loading in the previous-year quarter and shifts in demand for texturants. Health and Wellness had a strong start to the year, with robust demand driving higher results in probiotics and fibers.
Animal Nutrition results were lower versus the first quarter of 2020, driven primarily by lower demand and higher input costs as a result of pandemic effects, primarily in South America. This was partially offset by favorable results in amino acids, driven by improved product mix.
Other Business results were lower than the prior-year period, driven by lower Captive Insurance underwriting results, partially offset by more favorable ADMIS earnings.
USDA Hosts First-Ever Virtual Fair on Food Waste Reduction Innovations and Leaders
The U.S. Department of Agriculture (USDA) announced today that it will host the first-ever Food Loss and Waste Innovation Fair on May 26 (12 - 4 p.m. ET), to showcase USDA investments and business leadership in reducing food loss and waste throughout the food system.
“In the U.S., more than one-third of all available food goes uneaten through food loss or waste,” said USDA Food Loss and Waste Liaison Jean Buzby. “USDA is proud to highlight public and private leaders who are transforming the food system and combatting food loss and waste.”
The Innovation Fair will present businesses and research teams that have received USDA funding to research or commercialize cutting-edge food loss and waste solutions. Additionally, several USDA agencies – such as the Agricultural Research Service and the Food Safety and Inspection Service – will discuss their food loss and waste activities in research, measurement, education, funding, and outreach. Other presenters include several U.S. Food Loss and Waste 2030 Champions, businesses that have committed to reducing food loss and waste in their operations by 50 percent by 2030. The 2030 Champions initiative is co-led by USDA and the U.S. Environmental Protection Agency.
Among the presenters:
Lake County, Illinois received a USDA grant for a pilot community compost project. Activities include conducting a compost-to-farmland demonstration study, engaging community gardeners through education and outreach, and reducing and diverting food waste from landfills.
En Solución (Austin, Texas) was funded by a USDA Small Business Innovation Research grant to develop and deploy a sanitizer made from ozone nanobubbles to wash harvested produce. This technology has great potential to increase food safety and extend produce shelf life.
ReGrained (San Francisco, California) collaborated with USDA’s Agricultural Research Service to develop patent-pending technology to dry and process brewers grains into healthy, high-quality flours, transforming food waste into value-added – and tasty – products.
Sodexo, a global food service and facilities management corporation, will highlight their change management and operational engagement strategy to cut food waste in half by 2025 to reach their 2030 Champions target early.
This free, virtual event will feature virtual booths where visitors can learn about state-of-the-art solutions from business, government, and academic innovators. Attendees can text chat with representatives and other guests, watch videos, and download reports and other materials. Register today.
The USDA Food Loss and Waste Innovation Fair is among the individual and collective efforts of USDA, the U.S. Environmental Protection Agency (EPA) and the U.S. Food and Drug Administration (FDA) to work towards the national goal of reducing food loss and waste by 50 percent by 2030. Learn more about USDA, EPA, and FDA programs and resources to reduce food loss and waste.
CME Group Widens Daily Price Limits for Grains Starting May 2
Daily price limits for Chicago Board of Trade grain and soy futures will expand in May following a routine half-yearly review, CME Group Inc, parent of the exchange, announced last week.
The new limits go into effect on May 2, for trades dated May 3, CME Group said, potentially increasing volatility.
The wider daily limits follow the exchange operator's move on March 15 to expand speculative position limits, raising the number of CBOT futures contracts that non-commercial traders can hold.
CBOT corn, soybean and wheat futures have been trading at the highest prices in nearly a decade, buoyed by tightening global grain supplies.
For corn futures, the daily limit will move to 40 cents per bushel, from the current 25 cents. Limits for CBOT soft red winter wheat futures and K.C. hard red winter wheat futures will rise to 45 cents, from 40 cents.
For soybeans, the daily limit will widen to $1 per bushel, from 70 cents currently. The limit for soymeal futures will expand to $30 per short ton, from $25, and the soyoil limit will rise to 3.5 cents per pound, from 2.5 cents.
Daily limits will widen for oats, rough rice and other CBOT grain futures contracts, as well as lumber futures.
No comments:
Post a Comment