Friday May 28 Ag News

 Ricketts Proclaims May as “Renewable Fuels Month” in Nebraska

Friday, Governor Pete Ricketts signed a proclamation designating May 2021 as Renewable Fuels Month in Nebraska during a ceremony at U-Stop convenience store.  Following the proclamation signing, the Governor took part in a pump promotion to encourage Nebraskans to fill up their vehicles with ethanol fuel blends.

“Renewable fuels save drivers money at the pump, clean up the environment, and create great opportunities for Nebraska’s farm and ranch families,” said Gov. Ricketts.  “Nebraska is the second-leading producer of ethanol in the United States.  Our ethanol industry provides great-paying jobs for 1,400 Nebraskans.  Earlier this year, the State of Nebraska completed a study to demonstrate that E30 is safe and reliable to use in vehicles that are not flex fuels.  Promoting this research is one of the many ways we’re working to grow Nebraska by increasing the volume of ethanol in our nation’s fuel supply.”

Gov. Ricketts was joined by representatives from the Nebraska Department of Agriculture (NDA), the Nebraska Corn Board, the Nebraska Ethanol Board, and Renewable Fuels Nebraska for today’s event.

“Renewable fuels add value for our ag producers, economy, and consumers,” said NDA Director Steve Wellman.  “Farmers, ranchers, and livestock feeders see value through the grain markets and feed rations.  Renewable fuels add value to our economy by creating jobs and adding to the tax base.  Consumers receive value through lower prices at the pumps and reductions of greenhouse gas emissions.  In summary, renewable fuels boost Nebraska’s grain and livestock sectors, add to our thriving economy, and improve the air we breathe.”

“As a corn farmer, the ethanol industry plays a vital role in my livelihood,” said David Bruntz, chairman of the Nebraska Corn Board and a farmer from Friend.  “In addition to driving demand for Nebraska corn, ethanol benefits me as a consumer.  When I choose higher blends of ethanol at the pump, I’m saving money and doing my part to clean up our air.  Ethanol is the here-and-now solution to reduce greenhouse gas emissions and improve our environment.  Everyone wins with ethanol!”

“An important thing people can do to support renewable fuels in Nebraska is to ask their retailers to add E15 and higher blends,” said Jan tenBensel, Chairman of the Nebraska Ethanol Board.  “E15 is going to be the new standard fuel in Nebraska and in the Midwest, and in a few years, it will be the standard fuel in the United States.”

Nebraska now has 105 fuel retailers offering E15 and 122 retailers offering E85.



High levels of nitrate in our groundwater pose challenges for the future

The effects of groundwater contamination can be felt across the state, with most of the pollution sources pointing to commercial fertilizers.  Applying the right form at the right time at the right rate in the right place - this method of nitrogen management is referred to as the “4Rs”.  By using this method, producers can save time and money, all while protecting our groundwater.

One of the responsibilities of the Lower Elkhorn Natural Resources District (LENRD) is the development, management, utilization, and conservation of groundwater.  At the LENRD’s May board meeting, the members discussed ways to work together in managing resources for the future.

LENRD General Manager, Mike Sousek, said, “We have a rich history of agriculture in this state.  We want to work with producers to proactively manage our resources and secure the future that we desire for our children and grandchildren.”  He added, “As we continue to assess the nitrogen contamination across northeast Nebraska, we’ll be working to develop management plans as we challenge each other to improve the ways we protect our groundwater.”

The LENRD launched a website, bringing to light the concerns that are plaguing northeast Nebraska.  Visit www.nitrateinwater.org to find out more about the rising levels of nitrate in our groundwater and the steps that are being taken to address the environmental and health issues associated with this problem.

Also, during the meeting, the board denied the additional funding request from the City of Randolph for Phase 2 of their flood control project in the amount of $356,952.25.  Phase 1 construction is underway and almost completed.  The Phase 2 design is nearing completion, with the estimated total costs coming in higher than the original estimate.  The LENRD has been partnering with the city on this project for the past 18 years and have contributed over $1.97 million to date.  The LENRD also assisted with the costs to study the project area for a total of $165,319.53.  Through the studies, it was determined the most cost-effective option was the widening of the Middle Logan Creek channel that runs through Randolph.  This project will allow for a large portion of the city to be taken out of the 100-year flood plain.

The board approved a bid from Unkel Construction to repair or replace the living room window at the superintendent’s residence at Maskenthine Lake, not to exceed $8,000.

The board also approved the Wellness Program for staff for a total of $3,220.  The Program encourages employees to take advantage of the wellness benefits available through the NARD health insurance, especially blood screenings.  Flu shots are also provided for the staff as well as incentives for increasing physical activity and healthy eating.

In other action, the board accepted, with regret, the resignation of fellow board member Bob Huntley of Norfolk.  In a letter to the board Bob said, “I was proud to represent the people of Subdistrict 3 and hope my replacement will be as dedicated as I have been over the years.”  Bob served on the board since 2005.  The board will advertise to fill the position.

To learn more about the 12 responsibilities of Nebraska’s NRDs and how your local district can work with you and your community to protect your natural resources, visit lenrd.org and sign up for our monthly emails.  The next board of directors meeting will be Thursday, June 24th at LENRD office in Norfolk at 7:30 p.m. and on Facebook Live.



Saunders County Corn Growers Annual meeting

The Saunders County CGA Annual Meeting is taking place on June 8th! The speaker for the evening is Anne Thompson, Director, PAC and Political Strategy for the National Corn Growers Association. She will give an update from Washington, D.C. There will also be an update from the Nebraska Corn Board and the Nebraska Corn Growers Association. See the graphic below for more information.

If you are planning on attending, please RSVP to cdunbar2@unl.edu or call (800)529-8030 by June 1st. The meeting will be held at the NRD Educational Building, Lake Wanahoo just north of Wahoo.  Social time at 6:30pm, meeting at 7pm.  See you there!



NE Corn Board to Meet

The Nebraska Corn Board will hold its next meeting on Thursday, June 3, 2021 at Divots Conference Center, 4200 W Norfolk Ave., Norfolk, Nebraska.

The meeting is open to the public, providing the opportunity for public comment. The Board will conduct regular board business, consider funding requests and set the budget for fiscal year 2021-2022.  A copy of the agenda is available by writing the Nebraska Corn Board, PO Box 95107, Lincoln, NE 68509, sending an email to nikki.bentzinger@nebraska.gov or calling 402/471-2676.



Webinar to cover US meat exports, livestock markets

The growing role of exports in livestock markets will be the focus of a Nebraska Extension webinar that will be held on Thursday at noon.

Exports account for a significant share of U.S. pork and beef production, especially for certain cuts, adding value to every animal produced. The U.S. Meat Export Federation is working to build a strong demand for U.S. high quality, high value beef and pork, highlighting sustainability and health as well as quality, to proactively address consumer questions in the (mis)Information age. The webinar will cover the current global demand for red meat, how U.S. beef and pork exports have been performing and how exports are related to livestock markets and meat prices.

It will be presented by Erin Borror, an economist with the U.S. Meat Export Federation, a nonprofit trade association that works to develop international markets for U.S. beef, pork, lamb and veal.

The webinar is part of a weekly series produced by the Extension Farm and Ranch Management team in the Department of Agricultural Economics. Registration is free at https://farm.unl.edu/webinars.



NC Priority Bills Signed by Governor

Nebraska Cattlemen (NC) successfully acted on five priority designated bills during the first half of the 107th Nebraska Legislative session. Last January, Nebraska Cattlemen’s Board of Directors considered and took positions on 113 pieces of legislation, designating priorities for this session. We are pleased to announce that all priority designated measures have been signed by Governor Ricketts.

NC priority bills:
    LB252 (Williams) – “Dr Fox bill” Provide for refills of veterinary drug orders by veterinary drug distributors. LB252 was signed into law by Governor Ricketts on April 14th.
    LB572 (Halloran) – Change provisions of the Livestock Brand Act. LB572 was signed into law by Governor Ricketts on May 26th.
    LB396 (Brandt) – Adopt the Nebraska Farm-to-School Program Act. LB396 was signed into law by Governor Ricketts on May 27th.
    Broadband: LB338 (Bostelman) – Change provisions regarding broadband service and provide requirements for and change provisions relating to funding for broadband infrastructure. LB338 was signed into law by Governor Ricketts on May 5th. LB388 (Friesen) – Adopt the Nebraska Broadband Bridge Act. LB388 was signed into law by Governor Ricketts on May 27th.

Nebraska Cattlemen would like to thank the many Senators and staff who worked with Nebraska Cattlemen to develop and advance these bills this session.

    “The members of the Unicameral and their dedicated staff who respond to the needs of cattle producers across the state are very much appreciated”, commented William H Rhea III, President. He further commented, “It is very satisfying to have all our priorities addressed this year.”



Cattlemen Working to Address Labor Shortage

Nebraska Cattlemen applauds the efforts of our state and federally elected officials to address labor shortages for Nebraska Cattlemen’s producer members and supporting industries within the beef supply and marketing chain. Over the past year, Nebraska Cattlemen has been working with state and federal legislators and regulators to address the growing labor shortage.

“In addition to cattle market matters, the need for labor has elevated to a headline issue for our members – directly on their farms, ranches and feedlots, and in supporting industries such as processing facilities, transportation, and multiple supply sectors.” said William H. Rhea – President, Nebraska Cattlemen.

Nebraska Cattlemen is grateful for the ongoing support from Governor Ricketts by designating front line agriculture workers as essential to the economy and prioritizing this vital labor force for COVID-19 vaccinations and for his recent actions removing barriers that could disincentivize Nebraskans from returning to work. Additionally, Nebraska Cattlemen has engaged with Senators across the state to develop real time remedies such as workforce development programs and long-term solutions for housing challenges.

On the federal level, Nebraska Cattlemen is continuing to identify and act on solutions with Nebraska’s federal delegation to reform immigration policy to advance needed H2A visa restructuring and ensure state and federal resources are available for a legal immigrant workforce to successfully thrive in our communities. Nebraska’s Congressional delegation – in ongoing collaboration with Nebraska Cattlemen – has also identified the need to expand programs to help train Nebraska’s future food growers and processors through apprenticeship and specialized on-site training programs.

Nebraska Cattlemen will continue to fight for necessary changes to address labor shortages both short- and long term, in addition to prioritizing the ongoing exorbitant margin inequities among sectors within the cattle and beef marketing chain.



Extension offering course on managing conflict for farm and ranch families

Conflict and tension often arise in family farms and ranches. A new course, Dealing with Conflict Dynamics for Farm and Ranch Families, strives to provide Nebraskans with tools to build a better culture. Participants will gain the skills and resources necessary to overcome the conflict that may be hampering their family and business relationships. The course will be taught by renowned farm family coach Elaine Froese and hosted by Nebraska Extension’s Women in Agriculture Program.  

The Conflict Dynamics Training is a three-part course that will be held virtually from 3:30 to 5 p.m. Central time on June 15, 22 and 29, via Zoom. An internet connection is required, and participants should plan on attending all three sessions.  

Participants in this course will take a Conflict Dynamics Profile assessment to measure their personal conflict behaviors. The profile will help participants understand how they respond to conflict, what triggers can escalate conflict and how to manage conflict more effectively. Froese will then guide participants through a discussion on how to deal with conflict and tension on the family farm or ranch.  

The course fee is $35 per participant and the class size is limited to 20 people. Registration closes June 11. Because of the sensitive nature of the course, it will not be recorded.  

Registration is open at https://wia.unl.edu/conflict-dynamics.



Governors to DOJ: Continue Investigation into Meatpacking Practices

Thursday, South Dakota Governor Kristi Noem and five other governors wrote to the U.S. Department of Justice (DOJ), asking them to continue their investigation into anti-competitive practices in the meatpacking industry. The DOJ had originally sent investigative demands to the nation's four largest meatpackers in May 2020.

Noem was joined in signing the letter by Iowa Governor Kim Reynolds, Montana Governor Greg Gianforte, Nebraska Governor Pete Ricketts, North Dakota Governor Doug Burgum, and Oklahoma Governor Kevin Stitt.

"Perhaps no person embodies the independent and untamable spirit of the United States better than the cattle producer," wrote Noem and the other governors. "But this way of life is under threat. Decades of consolidation in meatpacking has significantly limited the options that producers have to market their cattle and has created a situation where one segment of the beef industry has near total control over the entire market."

The governors highlighted the threat to consumers as prices of meat at the grocery store continue to rise, all while beef producers are struggling to make ends meet.

"The consistently high prices realized on the boxed beef side are not being reflected on the producer side, forcing consumers to pay a premium for beef while threatening many of our producers with the loss of their business," wrote the governors.



Survey Shows Iowa Land Rents up Significantly in 2021

Most farmers in Iowa are seeing a significant increase in what they pay for land rents this year, according to a recent survey conducted by Iowa State University Extension and Outreach.

According to the “Cash Rental Rates for Iowa 2021 Survey,” which is conducted annually and available in the May Ag Decision Maker, rates have increased an average of 4.5%, an increase of about $10 per acre, for a total per-acre rent of $232.

Land considered to be “high quality” saw an average of a 3.9% increase, up from $257 per acre in 2020 to $267 in 2021. “Medium quality” land saw a 4.5 percent increase, from $223 per acre in 2020 to $233 in 2021, and “low quality” land is up 4.8%, from $188 per acre in 2020 to $197 in 2021.

“This is the first substantial increase in cash rents since 2013, when rents peaked and four years of declining rents and three years of relatively stable rents followed,” said Alejandro Plastina, associate professor in economics and extension economist with ISU Extension and Outreach.

One bright spot for farmers has been a significant increase in commodity prices since late 2020 and into 2021. But Plastina said it’s unlikely crop prices will be high enough to offset the income farmers will lose as recent government payments expire.

In 2020, about one-third of net farm income was supported by government payments. Much of this came from emergency funding and market disruptions caused by COVID-19.

“The (USDA) Economic Research Service is projecting a decline in net farm income this year, despite the increase in commodity prices,” Plastina said. “Corn and soybean prices are going up and are very high compared to recent years, but for the whole farming operation, it’s very unlikely that prices will run up high enough to offset the loss of government payments.”

This month’s Ag Decision Maker also includes an article on “Computing a Cropland Cash Rental Rate,” a decision tool for estimating cash rental rates, and information on flexible farm lease agreements.

District 1 - Northwest Iowa
2020 - $239
2021 - $242

District 4 - West Central Iowa
2020 - $237/acre
2021 - $247/acre

District 7 - Southwest Iowa
2020 - $203
2021 - $214

The 2021 cash rent survey is based on 1,363 usable responses from Iowans about typical cash rental rates in their counties for land producing corn and soybeans, hay, oats and pasture. Of these, 41% came from farmers, 33% from landowners, 11% from professional farm managers and realtors, 9% from agricultural lenders and 6% from other professions and respondents. Respondents indicated being familiar with a total of 1.5 million cash rented acres across the state.

As always, Plastina reminds farmers and the industry that the survey uses averages, and is meant to be a reference for decision making – not a blueprint.

“This survey should be use as a discussion starter and not as a price setter,” he said. “It provides something to share between landowners and tenants as they discuss whether the county averages make sense to them and why, and as indicated in the survey report, they should handle the negotiation in terms of the actual characteristics of the farm.”



DOT EXTENDS HOURS OF SERVICE WAIVERS FOR LIVESTOCK, FEED
NPPC newsletter

On Wednesday, the Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) extended its COVID-19 emergency declaration for Hours of Service (HOS) waivers for the transportation of livestock and livestock feed through Aug. 31. HOS governs the amount of time commercial truckers can drive their loads and when they are required to rest between drives. The agency had previously extended the waivers through May 31. NPPC thanks the administration and FMCSA for ensuring the continuity of the U.S pork supply chain as an essential element of the nation’s food delivery infrastructure.  



USMEF Virtual Conference Highlights Market Diversification, Logistical Challenges, Trade Policy Outlook

Representing a wide range of agricultural sectors, members of the U.S. Meat Export Federation (USMEF) gathered in a virtual format for the federation's annual Spring Conference, held May 26-27.

USMEF Chair Pat Binger, who heads international sales for Cargill Protein North America, opened the conference by discussing the importance of market diversification in achieving sustained success for U.S. red meat exports.

"The most recent export results – which are from March – provide a great illustration of this," Binger said. "Our leading pork market – China – was down significantly, yet pork exports still set new volume and value records. The leading beef market – Japan – was also down, but beef exports set a new value record and beef muscle cut volume was the largest ever. We know there will always be twists and turns in our top markets, which makes diversification extremely important."

Binger noted that USMEF saw excellent growth potential in Southeast Asia, Central and South America and Africa, and in recent years has committed more staff and resources to these regions. This forward-looking approach has helped expand the global footprint for U.S. pork, beef and lamb.

USMEF President and CEO Dan Halstrom updated members on COVID-related restrictions in key export markets and gave a detailed recap of first quarter export results, which were highlighted by the record March performance. He said 2021 promises to be an outstanding year for red meat exports, but cautioned that the industry continues to face shipping delays and other logistical challenges.

"As optimistic as this report is, it could have been better," Halstrom explained. "Port congestion, shortages of refrigerated containers, a shortage of chassis to move those containers, increasing freight rates and delays in ocean shipments continue to be a major constraint. Not only is this a constraint on shipments, the U.S. may run the risk of jeopardizing our longstanding reputation as a reliable global supplier of U.S. beef and pork."

Halstrom said USMEF is working with industry partners to create greater awareness of these challenges among federal regulators and to propose solutions to improve the flow of outbound cargo.

On trade policy, Halstrom said USMEF is urging the Office of the U.S. Trade Representative (USTR) to conclude free trade agreement negotiations with the United Kingdom and Kenya, which were launched by the Trump administration. He noted that a U.S.-Kenya FTA could serve to unleash much broader trade opportunities in Africa.

Speakers outline trade policy challenges for U.S. agriculture
Trade policy issues were also the focus a keynote address by longtime Washington policy analyst Jim Wiesemeyer, who gave USMEF members an update on the Biden administration’s agricultural policies and priorities and the implications for trade. Wiesemeyer noted that the U.S.-China Phase One Economic and Trade Agreement has delivered significant benefits for U.S. agriculture, but building on Phase One to complete a more comprehensive trade agreement with China could prove difficult. He offered similar thoughts on the U.S.-Japan Trade Agreement, which leveled the playing field for U.S. beef and pork in the Japanese market when it entered into force in 2020. Wiesemeyer said efforts to engage Japan in further trade negotiations could be complicated by Japan's desire for the U.S. to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The Biden administration's trade agenda was also discussed in a meeting of the USMEF Exporter Committee, where exporters received a trade policy outlook from guest speakers Darci Vetter and Carmen Rottenberg. Now vice chair for agriculture, food and trade for Edelman, Vetter is a former chief agricultural negotiator for USTR. Rottenberg is managing director of Groundswell Strategy, a consulting firm she co-founded after serving as administrator of the USDA Food Safety and Inspection Service. Exporters also received updates on port congestion and container availability, efforts to expand U.S. beef access in South Korea and consultations with Japan on the safeguard threshold for U.S. beef. This safeguard triggered earlier this year, resulting in a 30-day period in which a higher tariff rate was imposed on U.S. beef cuts entering Japan.

Day 1 of the conference also included a meeting of the USMEF Feedgrain and Oilseed Caucus, where members received a spring planting report and grain market outlook from Dr. Sam Funk, Iowa Farm Bureau Federation director of agriculture analytics and research. USMEF Korea Director Jihae Yang discussed opportunities for U.S. beef and pork in Korea's booming e-commerce sector and Joel Haggard, USMEF senior vice president for the Asia Pacific, gave an update on African swine fever in China and highlighted China's rapidly growing appetite for U.S. beef.

The second day of the conference featured meetings of the USMEF Beef and Allied Industries Committee and Pork and Allied Industries Committee. Members received updates on U.S. beef marketing activities in China, Africa and the European Union. On the pork side, USMEF staff discussed emerging opportunities in Central America and Southeast Asia and provided an update on the competitive landscape in Japan. The Pork Committee meeting also included industry updates from the National Pork Board and National Pork Producers Council.

Conference closes with market insights from USMEF international directors
Binger kicked off the closing general session by highlighting the importance of USMEF’s experience in serving the red meat industry in international markets. With a number of new challenges facing the industry over the past year, he said this experience is more important than ever for maintaining and defending the international customer base while working to identify new opportunities.

In introducing four USMEF international directors, Jesse Austin, USMEF vice president for international marketing, echoed what members had heard throughout the two-day meeting: global demand for U.S. red meat is strong, especially through retail and e-commerce, while foodservice recovery is at different stages from market to market. In addition to Haggard and Yang, the panel featured USMEF Japan Director Takemichi Yamashoji and Gerardo Rodriguez, marketing director for Mexico, Central America and the Dominican Republic.

Common themes emerged from the four presentations, including the rapid digitization that is reshaping marketing channels and impacting consumer behavior. The directors also provided updates on COVID-19 case numbers, social restrictions and vaccination rates in their markets. Japan and Korea are currently experiencing new waves of infections with continued restrictions, while Mexico is finally seeing a decline in cases and a gradual loosening of restrictions. Except for international travel, Haggard reported that China is open with no restrictions.

Yang described the e-commerce boom in Korea, with food sales increasing sharply during the past year. Demand is very strong for convenient home meal replacement and restaurant meal replacement products as consumers prize convenience and quality. Yang also discussed the growing importance of eco-friendly messaging in Korea and highlighted recent USMEF marketing initiatives to promote U.S. industry sustainability.

Rodriguez discussed changes in Mexico and Central America, saying that in a short period of time consumers are becoming multi-channel buyers who now typically conduct research prior to purchase. He said lockdowns and social restrictions drove consumers to digital channels and businesses have been racing to adapt. Many companies that formerly operated business-to-business only are now marketing directly to consumers through digital platforms.

Yamashoji explained that e-commerce adoption and sales growth is occurring at a slower rate in Japan. The Japanese culture places great value on in-person experiences and face-to-face interactions, and consumers still prefer to go to a store to see and touch products before purchasing. Social media is booming, however, as consumers regularly seek new ideas on products to purchase, particularly for meal preparation.

Haggard talked about increased digitization and automation in China, noting that the marketing environment has grown much more complex. He pointed to livestreaming and gamification as recent examples of how consumers are seeking immersion into e-commerce “experiences” to buy products. Haggard assured members that USMEF remains focused on the fundamentals of market development, working to build core purchasing and distribution programs with partners in the trade, retail and foodservice sectors, while also adding new skillsets and directly reaching a greater number of consumers.

The next meeting of USMEF members is set for Nov. 10-12 in Carlsbad, California, where the 2021 USMEF Strategic Planning Conference will mark the federation's 45th anniversary.



RECORD LAMB CUTOUT VALUE
Livestock Marketing Information Center

The lamb cutout value continues to set new record highs with the most recent record value of $464.33 per cwt set the first week of May. Last week the cutout value did drop by $9.61 per cwt (2.1%) to $454.73. Since the start of the year to the most recent record high value, the lamb cutout has gained $80.67 per cwt in value or 21.0%. The major primal values have also seen records set within the last several weeks. The shoulder (square cut), leg (trotter off), and rack (light) all reached record price levels last week to $378.47, $510.88, and $1,062.02, respectively. The loin (trimmed 4x4) reached its record level two weeks ago at $809.98 per cwt but has since decreased to $763.33.

The rise in the lamb cutout value has filtered down to feeder and fed lamb prices. The national negotiated live slaughter lamb price reached $198.88 and is quickly closing in on the record price of $204 set nearly a decade ago in July 2011. Since the start of the year, the slaughter lamb price has gained 29.1% ($44.85 per cwt) which has exceeded the 21.0% gain in the cutout value over the same period. The three-market average (CO, TX, and SD) feeder lamb price has fluctuated since the start of the year but has managed to average over $260 per cwt this year which is well above the five-year average of around $200 per cwt.

Weekly sheep and lamb slaughter started to see levels increase the last week of February which would be expected given Easter was earlier this year on April 4th. Typically slaughter levels will start to decline following Easter but this year the pace has remained steady. Since the last week of February, preliminary estimated weekly sheep slaughter averaged about 36,000 head, but actual weekly slaughter averaged about 41,500 head, around 5,500 head higher on average. Recent weeks have seen actual slaughter as much as 10,000 head higher than the estimated slaughter for the same week. These are levels well above pre-pandemic weekly slaughter and higher than levels prior to the close of the Mountain States Rosen plant in July 2020. The higher actual slaughter shows that the increased slaughter capacity is starting to take effect in the industry. Record cutout values highlight the post-pandemic demand recovery that is starting to occur which is giving an economic incentive for packers to slaughter lambs and producers to actively market lambs.



Farmers Deserve the Right to Repair Their Tractors
Hannah Packman, National Farmers Union Communications Director

Thanks in large part to the introduction of machinery like tractors and combines, farms today are far more efficient and productive than they were a handful of generations ago. Though these time- and labor-saving technologies can run tens or even hundreds of thousands of dollars, farmers often aren’t able to fix their machinery themselves – which has significant implications for their finances, privacy, and security.

A few decades ago, any given farmer often had the skills and tools needed to quickly make repairs if their machinery broke down. These days, however, it’s not so straightforward. Most modern farm equipment is technologically advanced, containing computers and sensors that collect and transmit data. As a result, specific software tools are typically necessary to address mechanical failures and other issues.

However, most companies refuse to make those tools available to farmers, making it exceptionally difficult to fix broken machinery on their own. They can’t even go an independent mechanic, since manufacturers won’t sell them parts or diagnostic tools either. This leaves farmers essentially no choice but to take their broken equipment to a licensed dealership.

This isn’t cheap. A farmer might spend thousands of dollars on a simple adjustment they could have done themselves with the appropriate resources. On the other hand, this arrangement has proven wildly lucrative for manufacturers; for Deere, as an example, parts and repairs are up to six times more profitable than selling the equipment itself.

But money isn’t the only problem – it’s also a matter of time. Oftentimes on a farm, tasks like planting and harvesting have to be done within a window of just a few days when the moisture content, ripeness, or weather conditions are just right. If, god forbid, machinery breaks during that window and a dealership can’t make an appointment immediately, the wait can cut severely into the farmers’ annual yields and income.

There’s also the issue of privacy. Equipment manufacturers collect lots and lots of data about soil, weather, yields, and other factors, which they can then share with or sell to “affiliates and suppliers.” This intentional data sharing in and of itself is worrying for farmers’ privacy, but even worse is the possibility of hackers accessing that information. Just last month, a security expert found vulnerabilities in John Deere’s apps that would have allowed outsiders to download the company’s data on farm equipment and vehicle owners.

In addition to data breaches, there are other potential security risks. Because most modern tractors can be operated and shut off remotely, some farmers and experts worry that hackers could disable thousands of tractors at a time. Such a widespread disruption could affect the entire country’s agricultural production, threatening livelihoods and food security.

Unfortunately, there aren’t a lot of alternatives for farmers who want to buy equipment they can fix. About 95 percentof large farm tractors are made by just three companies: Deere, CNH Industrial, and AgCo, all three of which engage in the kind of resource restriction that prevents on-farm repairs. Instead, some farmers have resorted to buying decades-old tractors that don’t require copyrighted software to repair.

Farmers shouldn’t have to choose between outdated equipment or the inability to fix their own tools. That’s why National Farmers Union will continue to fight for Right to Repair legislation that allows farmers and independent mechanics access to diagnostic software, information, and other tools necessary to repair modern equipment.



Statement by Agriculture Secretary Vilsack on the President’s Fiscal Year 2022 Budget
The President proposes historic investments to spur new job creation and opportunities in rural America; help restore America’s advantage in agriculture; leverage all of USDA’s expertise to address climate change; and support a stronger nutrition safety net.

Agriculture Secretary Tom Vilsack released the following statement today:

“The Biden-Harris Administration today submitted to Congress the President’s Budget for fiscal year 2022. As the Administration continues to make progress defeating the pandemic and getting our economy back on track, the budget makes historic investments that will help the country build back better and lay the foundation for shared growth and prosperity for decades to come.

“The President’s budget gives USDA a new set of tools to address the urgent challenges of our time—racial injustice, a changing climate, and hunger. When we invest fairly and equitably in American families and communities, we lay the foundation for decades of American prosperity.

“The budget includes the two historic plans the President has already put forward—the Americans Jobs Plan and the American Families Plan—and reinvests in education, research, public health, and other foundations of our country’s strength. At the Department of Agriculture, the budget would:
    Expand Broadband Access. $700 million is being requested for Reconnect to provide access to quality broadband to rural residents and address challenges for Tribal communities. High-speed internet would serve as an economic equalizer for rural America while creating high-paying union jobs in rural America. This investment also builds on the $100 billion of funding proposed in the American Jobs Plan.
    Supports a Strong Nutrition Safety Net. Women, infants, and children have better health outcomes when healthy, nutritious food is on their table. This budget requests $6.7 billion for the for Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to help vulnerable families, address racial disparities, and combat rising food insecurity.
    Combat the Climate Crisis and Conserve Our Nation’s Lands. The budget increases funding for climate smart agriculture, climate resilience and clean energy by nearly $1.5 billion. This funding supports effective land management decisions and partnerships with local communities and Tribal Nations to address climate adaptation, conservation, and ecological resilience. This work will address the underlying conditions of drought that are leading to longer, hotter fire seasons.
    Invests in Critical Research and Development Capacity for Farmers. American farmers must be able to compete in world markets to thrive, all while protecting the health of America’s soil and water. This request provides $4 billion for USDA’s research, education, and outreach programs focused on making investments in agricultural research to put science and data-driven tools and American technologies in the hands of farmers. We need to equip America’s farmers to out-compete the world.

“Enacting the budget policies into law this year would strengthen our nation’s economy and lay the foundation for shared prosperity, while also improving our nation’s long-term fiscal health.”

For more information on the President’s FY 2022 Budget, please visit: www.whitehouse.gov/omb/budget.  



AGCO enters into targeted spraying technology collaboration agreement with Bosch, BASF Digital Farming and Raven Industries Inc.

AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, announced it has entered into a proof of concept (PoC) collaboration agreement with Robert Bosch GmbH, BASF Digital Farming GmbH and Raven Industries Inc. (NASDAQ:RAVN), with the objective of evaluating targeted spraying technology to make the application of crop protection products more effective and efficient by reducing crop input costs while driving farm and environmental sustainability.

To support the reduction in herbicide application, the targeted spraying PoC will focus on real-time sensing technology to make crop protection decisions. By detecting weeds in growing crops as well as on fallow ground, day or night, this technology will execute precise targeted product placement down to the individual plant level. In addition to the environmental benefits, targeted spraying will help enhance farmer profitability by only spraying the herbicide where needed. This makes the use of more efficient herbicides affordable allowing for much better weed control. Where optimal herbicides are already used, the smart sprayer provides a volume and cost reduction.

The initial concept is being evaluated on a Fendt Rogator sprayer in Europe with plans to extend to North America in 2022.

“Farmers have long been searching for innovative ways to minimize chemical usage and reduce passes through the field to achieve their crop protection goals. Combined with the potential for further regulatory pressure, we believe this collaborative spraying effort advances our farmer-first focus and is further evidence that we will work with the best-in-class partners to serve farmers’ needs. This effort is aimed at validating targeted spraying solutions, delivering a reduction in product use to achieve the same results as broadcast spraying in both pre- and post-emergence with the flexibility of spraying day or night,” said Seth Crawford, Senior Vice President and General Manager, Precision Ag and Digital for AGCO.

Coupled with AGCO’s application equipment expertise, Bosch brings capabilities in hardware, machine learning and artificial intelligence as well as digital services. xarvio™ Digital Farming Solutions provides an automated, real-time, in field agronomic decision-making engine for weed management and crop optimization. Raven Applied Technology is committed to sprayer efficacy and operational efficiencies that further enable precision control of chemicals for targeted spraying applications.

“Raven is excited for this collaboration. The expertise of each organization will undoubtedly provide industry changing solutions for some of agriculture’s greatest challenges,” said Dominic Walkes, Raven Applied Technology Director of Strategic Initiatives. “This smart spraying proof of concept is the first of many that will aid in advancing solutions for a more sustainable future.”

The combined power of the technologies that this collaboration is focused to deliver will empower farmers to drive greater efficiency in their operations while helping to protect the environment through reduced chemical usage in line with AGCO’s commitment to providing farmer-focused solutions to sustainably feed the world.