Tuesday May 11 Ag News

Celebrating and Savoring Nebraska Beef
By Governor Pete Ricketts

Nebraska has long been known as the Beef State and May is Beef Month, so it’s the perfect time to enjoy a delicious burger or steak.

Agriculture is our state’s largest industry, and beef is the biggest segment of Nebraska agriculture.  Our beef industry generates about $10.6 billion in cash receipts each year, which is roughly half of all ag receipts in Nebraska.  Nationally, Nebraska ranks #1 for commercial cattle slaughter, and we’re number two for beef exports, commercial red meat production, all cattle and calves, and all cattle on feed.  Beef creates jobs, not only for ranchers and feeders but also for animal breeders, butchers, cattle auctioneers, feed mill operators, food processing workers, rangeland scientists, steakhouse owners, veterinarians, and more.  Nebraska’s beef production continues to grow and generate new opportunities.  Since 2015, Nebraska’s farmers, ranchers, and feeders have added over 500,000 head of cattle to operations here in our state.

Nebraska beef is popular around the world.  Japan and South Korea are the biggest international markets for our beef.  In 2020, we supplied 62.6% of all U.S. beef exports to the European Union, and over 90% of our country’s beef exports to Israel.  This year, Nebraska set an all-time record for first quarter beef exports, topping $350 million of exports from January through March 2021.

While our family ranches are working to grow Nebraska, anti-livestock activists have been spreading misinformation about the healthiness of beef in an effort to get people to eat less meat.  It’s important to counter these attacks with some basic facts.  Beef is an important part of a nutritional, healthy diet.  It’s packed with protein.  You can get as much protein from three ounces of beef as you can from three cups of quinoa—and who wants to eat that much quinoa?  Beef is a nutrient dense food.  It contains essential components of a good diet such as vitamins B6 and B12, zinc, and iron.  Eating beef helps you build and preserve muscle and maintain a strong immune system.  It’s also a great source of energy and brainpower.  Plus it tastes great!  These are some of the reasons why beef consumption in America during 2019 (the most recent year of data available) was at its highest point in over a decade.

While raising livestock for consumption is our way of life, this industry is under attack.  Radical environmentalists and supporters of the Green New Deal have been pushing a climate agenda that’s opposed to animal agriculture.  Their ill-informed attacks reveal a lack of knowledge about modern agricultural practices.  Our family ranches are continuously improving the efficiency of their operations.  The United States produces the same amount of beef now as it did in 1977, with 33% fewer animals.  Since the 1960s, our ranchers have contributed to a 66% increase in national beef production, while helping the U.S. cattle industry reduce its carbon footprint by 40%.  Per pound of beef produced, the U.S. has some of the lowest greenhouse gas emissions in the world—measuring 10-50 times lower than in many other parts of the globe.

Anti-livestock environmentalists also fail to grasp the importance of beef to the global food supply.  Worldwide, two-thirds of land isn’t suitable for growing crops, but much of it can be grazed by livestock.  In fact, 86% of livestock feed can’t be eaten by humans.  Taking away beef as a food source would jeopardize our ability to feed our growing world.

In the early days of his presidency, Joe Biden has allied himself with radical environmentalists.  In January, he signed an executive order calling for 30% of lands and waters to be set aside for conservation by 2030 (30 x 30).  Last week, the Biden-Harris Administration released a vague report on its 30 x 30 program.  It contained a lot of hollow platitudes and few new details on the plan.  While the report states that 30 x 30 will include voluntary private measures, at least in part, this reassurance is not enough.  If the Biden Administration really believed that voluntary measures worked, they would leave conservation efforts to the states and private landowners instead of pursuing a national strategy that imposes goals written by federal bureaucrats.

President Biden needs to side with our hard-working farm and ranch families rather than caving to the radical demands of environmental lobbyists in DC.

Here in Nebraska, we will continue to fully support our ag producers as they work to feed the world.  We’ll defend our way of life, and we’ll protect the rights of our landowners against federal encroachment.

If you have questions about the State of Nebraska’s work to support agriculture, please email pete.ricketts@nebraska.gov or call 402-471-2244.

To show your support for our ranchers, I invite you to participate in the Good Life Great Steaks Beef Passport program presented by the Nebraska Beef Council.  The Passport program features 41 restaurants in our state that serve premium Nebraska beef.  From now through September 7, 2021, passport holders can earn stamps by dining at participating restaurants.  After collecting stamps, diners can then submit them to be entered into prize drawings.  To order a passport, see a list of participating restaurants, and get information on program rules and prizes, go to www.goodlifegreatsteaks.org.  



STILL TIME TO FERTILIZE SUMMER HAY MEADOWS
– Ben Beckman, NE Extension Educator

Do you need to grow more hay for next winter?  One way to get that extra hay might be to fertilize your hay meadow this spring.  There may still be time.

Hay meadows respond well to fertilizer.  But, be sure to use the types and amounts of fertilizer that work best for the plants in your hay meadow.  For example, do you have much clover or other legumes in your hay meadow?  Then fertilize with phosphorus.  A soil test can tell you how much phosphorus to use; usually 20 to 40 pounds per acre will stimulate legume growth nicely in most hay meadows.  These legumes then will help supply some nitrogen to the grasses in your meadow, and the hay you cut from this meadow will yield more and contain more protein than straight grass hay.

Maybe your meadow already is green and growing well with cool-season grasses like bluegrass, brome, timothy, or wheatgrasses that head out in late May or June.  Nitrogen can increase yield from this meadow. Warmer parts of the state may have already missed this window, but if your grass is still vegetative, there may still be time.  The rate to apply declines as we go from east to west — use about 80 pounds of nitrogen per acre in eastern Nebraska but only 30 to 40 pounds in the Panhandle.  Regions where rainfall has been lacking may hold off on fertilizing, as the added nutrients won’t be used without moisture for grass growth.

Warm-season grass meadows are starting to green up, too.  Like cool-season grasses, nitrogen rates decline from 60 pounds in eastern Nebraska to 30 pounds out west.  But be patient.  Do not fertilize quite yet.  Wait until mid- to late May before fertilizing your warm-season grass meadows.



Farm and Rural Organizations Support LB241

Six farm and rural organizations have come together to support LB241 as a reasonable, cost effective, common sense way to insure that Nebraska meatpacking workplaces are safe and meatpacking workers are healthy. They thank the State Senators who supported LB241 on General File last week, and encourage those that did not to reconsider their positions based on the best interests of meat producers, meatpacking workers, and meat consumers.

“One year ago this May, Nebraska livestock producers faced an unprecedented and disastrous situation. The COVID-19 health impact on meatpacking workers slowed or stopped meat processing in Nebraska in less than a week.  The reduced processing capacity created a crisis for livestock producers with livestock ready for market because there was no place for their livestock to get processed. Livestock producers, the organizations that represent them, and state officials were forced to consider best practices to euthanize and properly dispose of thousands of hogs and some cattle.”

“Our highly concentrated commercial meatpacking system is very efficient, but it still depends on its workers to make it function. When the meat processing chain stopped, the entire livestock production chain was directly impacted. We were all reminded that it is in the interest of all meat producers, meatpacking workers, meatpacking companies, and meat consumers to have safe meatpacking workplaces, and healthy meatpacking workers.”

“Year after year, Nebraska continues to be one of our nation’s leading meat producing and processing states. Nebraska’s cash receipts from all livestock and products in 2018 were $11.9 billion. Nebraska was first in commercial cattle slaughter in 2019. Nebraska also has one of the nation’s leading public health institutions with the University of Nebraska Medical Center (UNMC).”

“It is logical and prudent for Nebraska to follow and utilize the COVID-19 pandemic based guidance UNMC developed for our meatpacking companies. We believe the thrust of the UNMC workplace suggestions is consistent with the remaining action provisions contained in LB241. Our meatpacking companies should already be following these common sense recommendations. If the companies are following the recommendations, LB241 will not impact them.”

“We urge the Legislature to support and Governor Ricketts to sign LB241 this session. It is in the best interests of our state’s meat producers, meatpacking workers, meatpacking companies, and meat consumers. Our Nebraska livestock producing and processing system and state as a whole depends on healthy workers and a safe workplace.”  



Liquidation due to Drought
Elliott Dennis, Livestock Extension Economist, University of Nebraska - Lincoln

Forage Production, Beef Cows, and Stocking Density and their Implications for Partial Herd
Approximately 654 million acres are used for livestock grazing (ERS 2018) or approximately 35% of the total land area in the continental USA. The total acres under grazing have fluctuated through time ranging from a low of 583 million acres in the 1990s to a high of 654 million acres in the 2010s. Fluctuations in grazed land have also varied across the US’ diverse geography. For example, the Mountain region consists of approximately 55% of all grazed land, Southern Plains 15%, and Northern Plains 12%. All other regions have between 1-3% of the total grazed land.
 
Historically, beef cow herds have tended to follow the availability of cheap nutrient-rich forage often in the form of grass and crop residue. For example, the Mountain region consists of about 15% of the total beef cow herd and generally relies on federally owned land that is leased back to producers during the grazing period. During winter, cattle are put on private pastures or fed harvested forages. The Southern and Northern Plains have 18% and 15% of the total beef cow herd, respectively, and have a large amount of private native grassland and expansive row crop production during grazing. Cattle are supplemented with harvested forages, protein concentrates, and crop residues during winter. All other regions have between 4-8% of the total beef cowherd and generally rely on improved pastures that can be utilized year-round with minor additional supplements. Historically, the share of beef cow herd by geographical region has not substantially varied showing some consistency in the ability to use feed resources.
 
Availability of pasture to graze or total beef cows within a region do not tell us about how efficient each region is. The stocking rate (acres per beef cow) is one measure of efficiency where a lower ratio suggests greater efficiency (i.e.fewer acres required per cow). While the Mountain, Southern Plains, and Northern Plains have both the largest amount of grazed land and beef cows, these regions also have the highest stocking rate on average. The Mountain region required approximately 50 grazed acres per beef cow, by far the highest of any region. The Southern Plains required 15 acres per beef cow and the Northern Plains required 11 acres per beef cow. The most efficient regions, at least from the stocking rate measure, were the Northeast, Lake States, and Appalachian Region. On average, these regions required 1.5 grazed acres per beef cow. As previously mentioned, these stocking rates are in part reflective of the climate, feed resources, and pasture improvements.
 
So what do grazed pasture, beef cow populations, and stocking density tell us about the potential impacts of beef cow herd liquidation due to drought? Areas with lower stocking rates are likely areas that are at more risk to adverse weather conditions since they rely upon either seasonal or harvested feed resources to sustain a beef cow herd. Further, in the absence of seasonal forage, there are not large amounts of crop residues or protein concentrates from ethanol plants to supplement the lack of forage. Figure 1 shows the most recent Drought Monitor map and confirms the Mountain region and parts of the Northern Plains region are currently the most affected by drought conditions. USDA Pasture and Forage Conditions report confirmed these findings last week indicating that nearly 50% of US range and pasture was rated as either poor or very poor. As previously mentioned, there are regional differences in range and pasture ratings and one reason this number is so high is that over 70% of the total grazed range and pasture are in a D1 (moderate drought) level or greater.
 
Moving into this forage production year, producers will have two decisions to make: 1) destocking or 2) depopulating. Depopulation means selling cows, heifer, yearlings, and calves to fit the available forage. Destocking means not sell animals, but cattle are either moved to newly obtained pasture, rented or purchased, or purchased hay for the current herd size. With the US beef cow herd peaking in 2019 and beginning its liquidation process, increasing drought pressure could only accelerate this liquidation process.
 
So what strategy should producers who are wanting to maximize profits do given drought has occurred at the trough of the cattle price cycle? Work by Wyoming ag economists has modeled the producer profit-maximizing decision in a drought conditional on where the industry is at in the cattle price cycle and length of drought (Bastian et al. 2008). They modeled a 3- and 4-year drought conditions using a producer strategy for either partial herd liquidation and/or purchase of additional hay as a management strategy, given either a peak-to-peak or trough-to-trough cattle price cycle. They find that in the short run, partial liquidation of cattle tended to provide better returns than purchasing feed to overcome constrained forage supplies and that partial liquidation tended to be less risky and create potentially less financial stress than purchasing feed. Further, purchasing additional feed only provided positive returns when prices were stronger overall during a trough-to-trough cattle price cycle as compared to the peak-to-peak cattle price cycle scenario. Thus, given we are at the trough of the price cycle, risk-averse producers are more likely to partially liquidate their beef cow herd rather than to buy feed resources. However, if producers believe that prices are likely to be stronger, on average, during the upcoming trough-to-trough cycle then they will buy feed resources. Given the increasing volatility in the cattle markets, I believe that most producers are more likely to at least partially liquidate their beef cow herd rather than buy feed resources. This of course assumes no indemnity payouts from Pasture, Range, and Forage Insurance (PRF). A producer who has already protected forage with PRF is more likely to buy additional feed resources than to partially liquidate their herd.  
 
What this potential partial beef cow herd liquidation means for cull cow and feeder cattle prices will likely differ based on geographical region. If producers decide to liquidate, then the cull cow prices will come down mostly in the Mountain and Northern Plains region. Cull cow prices are likely to be unaffected in other regions because beef cow markets are generally assumed to be regionally based on cow genetics rather than subject to market arbitrage. Under a situation of worsening drought, more feeder cattle will enter feedlots earlier than expected lowering feeder cattle prices. With the influx of liquidated feeder cattle from the Mountain and Pacific regions, Northern and Southern Plains feedlots will be able to get feeder cattle cheaper there than from other regions. Thus, if drought conditions worsen in the Mountain and Pacific region, then feedlot demand for feeder cattle in Southeast and Appalachian regions will likely decrease. A drought scenario combined with elevated corn and soybean prices is a worst-case scenario. With elevated feed costs, feedlots would have further incentives to delay feeder cattle placements, especially lighter feeder cattle, since the cost of gain would be too high. This would put further downward pressure on feeder cattle prices. Risk management in the form of USDA-RMA Livestock Risk Protection or CME futures and options can help mitigate some of these potential downward price movements and likely merit a closer look by producers this production year.



Scoular extends supply chain deeper into Asia-Pacific region

Over the past year U.S.-based Scoular has invested in a trade and regional support team in Singapore and expanded its distribution capabilities in Indonesia and Myanmar, extending the company’s supply chain further into the fast-growing Asia-Pacific region.

“Our team in Asia has the local knowledge and relationships to deliver reliable solutions for our customers,” said Adrian Gasparian, Scoular Vice President and Managing Director for Asia-Pacific, based in Singapore. “We’re built to grow, and I’m excited for what’s possible for Scoular and our customers in this dynamic region.”

Gasparian said Scoular’s four key investments in Asia to date are:
• Building a trade team in Singapore to support intra-Asia trading for Scoular’s food and feed ingredients. The team is based in a newly opened office in Singapore that also is home to Scoular’s Asia headquarters and regional support teams.
• Launching a soybean distribution program in Indonesia, completing Scoular’s end-to-end supply chain connecting U.S. yellow soybean producers to Eastern Java tempeh and tofu manufacturers. Scoular began operating soybean cleaning facilities in Surabaya and Semarang, Indonesia, in February and March, respectively.
• Launching feedstuffs distribution in growing regional markets in Indonesia and Myanmar, providing customers with just-in-time inventory and local delivery options.
• Establishing a value-add fishmeal facility in Myanmar which will supply customers in Asia with consistent quality and just-in-time delivery. The facility is expected to be fully commissioned in the coming months.

Scoular, headquartered in Omaha, Nebraska, has been selling to Asian food and feed customers for more than 25 years and is a leading supplier of soybeans to the region and fishmeal worldwide



On-farm BeefMeet events focus on climate and environmental sustainability

The Iowa Cattlemen’s Association is excited to host four educational, on-farm events in June.

BeefMeets feature educational sessions on policy and production, industry updates, a farm tour, trade show and meal. This year’s focus is climate and environmental sustainability. Well-respected professionals will share how beef cattle producers can further enhance their reputation as the original stewards of the land and natural resources at the dates/locations listed below:

Wednesday, June 9:
Southeast Region BeefMeet
Bryan & Lisa Sievers, Glenora Feedyard LLC.
26618 20th Ave.
Stockton, IA 52769
“Making Sense of Methane” presented by Dr. Jason Sawyer, associate professor and research scientist, King Ranch Institute.  Much of the confusion on this topic is based on complexity in how methane emissions are counted, and how these values are interpreted. In this session, we will look at methane emissions, and what this means for environmental sustainability of beef systems.

Thursday, June 10:
Southwest Region BeefMeet
Euken-Myers Farm
67242 610th St.
Lewis, IA 51544
“Beef Sustainability - A Paradigm Shift” presented by Ashley McDonald, NCBA senior director of sustainability.  There is more and more going on around beef sustainability, but the good news is the world is beginning to see U.S. beef production as part of the solution to their environmental challenges. Find out what the landscape of goals, commitments and initiatives looks like and how the cattle industry can further enhance its reputation as the planet’s original stewards, driving demand for our product.

Tuesday, June 15:
Northwest Region BeefMeet
Rus Ranch
2804 Eagle Ave.
Rock Valley, IA 51247
“What’s the Beef on Carbon?” presented by Dr. Lisa Schulte Moore, professor, Department of Natural Resource Ecology and Management - Iowa State University.  A discussion on how the livestock industry can create climate-smart agriculture for the Midwest.

Thursday, June 17:
Northeast Region BeefMeet
Dave & Dylan Klaes Farm
2747 Hwy 9
Osage, IA 50461
“Environmental Regulation in 2021: The Cattle Industry and the Biden Administration” presented by Scott Yager, NCBA chief environmental counsel.  Straight from Washington, D.C., hear from NCBA’s chief environmental counsel, Scott Yager, as he talks about navigating a new administration and NCBA’s work to protect producers from increased environmental regulation.  

In addition to the educational sessions, a full trade show and networking opportunities, cattlemen will have the opportunity to share policy and industry concerns with ICA leaders. “Our objective as an organization is to be at the table voicing the concerns of our stakeholders,” Matt Deppe, ICA CEO says. “Grassroots policy breakout sessions provide dedicated time for leaders to sit down with producers to really identify the topics and issues keeping folks up at night.”  

The evening will conclude with a tour of the hosting beef operation.

The regional BeefMeets will take place from 5 p.m. to 9 p.m. Registration is encouraged, but walk-ins are always welcome. The price is $25 for members, $35 for non-members and free for students.

Come see how the Iowa Cattlemen’s Association is working for you at the 2021 BeefMeets! Register today at https://www.iacattlemen.org/events-meetings/beefmeets-regional-conventions or call 515-296-2266. Payment will be taken at the door, the day of the event.   



5 Pork Supply Chain Disrupters in a Post-COVID-19 World

You're invited to register for our next free webinar for pork producers.

There are certainly no shortage of potential supply-chain disrupters for the pork industry in a post-COVID-19 world — from high feed prices to the ongoing global spread of African swine fever, along with other high-impact variables.

The Checkoff’s May producer webinar features Dr. Jayson Lusk, professor and head of the agricultural economics department at Purdue University.

Dr. Lusk will discuss the top five potential disrupters to the pork supply chain in the world after the COVID-19 pandemic.

May Pork Producer Webinar
Tuesday, May 19
1:30 p.m. CST
Click to Register: https://pork.zoom.us/webinar/register/WN_a4hg4acxSmSRaItnUdJwVg.  



USDA to Host Educational Webinar Series on Livestock Mandatory Reporting in June 2021

The U.S. Department of Agriculture (USDA) will host a series of three live educational webinars about USDA’s Livestock Mandatory Reporting (LMR) Program over three consecutive days in June 2021. The free webinars, which will begin on Tuesday, June 8, and continue through Thursday, June 10, 2021, will be held from 6:00 p.m. to 7:30 p.m. Central Time each day. The webinars are part of USDA’s ongoing outreach to the cattle industry conducted by its Cattle and Carcass Training Centers (CCTC). While anyone can register to attend the webinars, they are targeted to cattle producers, feeders and others in the U.S. beef supply chain who want a better understanding of LMR reports, which provide the entire supply chain with critical market intelligence on price trends, as well as supply and demand conditions.

The webinar speakers, including representatives from USDA Market News, an economist from Colorado State University and beef industry professionals, will discuss the LMR reports and highlight the details and valuable data found in the reports, and provide examples of how this data may be applied to facilitate marketing decisions and mitigate risk.

The Agriculture Improvement Act of 2018 (Farm Bill) directed USDA to establish the CCTCs in order to conduct activities that will limit subjectivity in the application of beef grading standards, provide producers with greater understanding of the value of their cattle, and provide investors more confidence in the cattle delivery system. USDA’s Agricultural Marketing Service (AMS) signed agreements in 2019 to establish the CCTCs at West Texas A&M University in Canyon, Tex.; Colorado State University in Fort Collins, Colo.; and at the USDA Agricultural Research Service’s U.S. Meat Animal Research Center in Clay Center, Neb.

Part I: Utilizing Livestock Mandatory Reporting (LMR) Live Cattle Reports
Date and Time: Tuesday, June 8, 2021, 6:00-7:00 PM CDT (7:00 – 8:00 PM EDT)

Presenters: Charlie Potts- Agricultural Marketing Service, and Dr. Stephen R. Koontz- Colorado State University, Department of Agricultural and Resource Economics Learn about Livestock Mandatory Reporting (LMR) and get answers to the most frequently asked questions USDA receives regarding LMR reports. Look at the various elements of these reports and examine the differences between the types of reports used in the cattle industry. Explore how USDA Live Cattle reports are used to manage price risks associated with domestic production. View the Speaker Bios (pdf)
Part II: USDA LMR Boxed Beef Reports- How Quality Grade Impacts Value
Date and Time: Wednesday, June 9, 2021, 6:00-7:00 PM CDT (7:00 – 8:00 PM EDT)

Presenters: Chris Sommers- Agricultural Marketing Service, and Dr. Stephen R. Koontz- Colorado State University-Department of Agricultural and Resource Economics Explore the fundamentals of the USDA Box Beef Cutout Value reports and the factors which influence these reports. Our presenters will explain concepts related to price differences between the various USDA Grades of wholesale beef cuts, dive into specific elements of the reports, such as the "Choice/Select spread" and other elements that can be used to make more informed production and marketing decisions. View the Speaker Bios (pdf)
Part III: Using LMR Reports in the Real World: An Industry Panel
Date and Time: Thursday, June 10, 2021, 6:00-7:30 PM CDT (7:00 – 8:30 PM EDT)

Panelists: Spencer Prosser- MP Agrilytics; David Trowbridge- Gregory Feedlots; and Jordan Levi- Arcadia Asset Management Hear from a panel of U.S. beef industry peers how they leverage the data in USDA’s LMR cattle reports to support decision-making and manage risk, from the perspectives of a large feed-lot company, a mid-sized cattle feeder enterprise, and a cow/calf operation. This session will conclude with a live question and answer session with the three panelists and speakers from Parts I and II of this webinar series. View the Speaker Bios (pdf)

This webinar series (Zoom) is open to the public. Pre-registration is required.  Register for the Series here: https://www.zoomgov.com/webinar/register/WN_ZMf65oRKT1-WU1k_e3V6Iw.  



Origin of Livestock Notice

On May 12, the AMS National Organic Program (NOP) will announce in a Federal Register Notice the reopening of the public comment period for the Origin of Livestock proposed rule originally published in 2015. The comment period will be open for 60 days: May 12 – July 12, 2021.

The Origin of Livestock Notice proposes revisions to the USDA organic regulations that would change how conventional livestock are transitioned into organic production and how transitioned animals are managed in the organic system.

This Notice invites comments on specific provisions that were not considered in the previous 2015 proposed rule, based on public comments to that proposed rule and comments received during the supplemental public comment period in 2019. This additional public comment period will inform USDA's development of a final rule and allows people an opportunity to submit comments on the new information.



Tax Aggie Coalition Urges Congress to Protect Sound Tax Policy

The Tax Aggie Coalition sent a letter, signed by 41 national and regional agriculture organizations, to House and Senate leadership to express significant concerns about legislative proposals that would jeopardize the future of family-owned farm and ranch businesses.

As members of Congress work to implement President Biden’s American Families Plan, the coalition urges lawmakers to enact commonsense policies that preserve a sustainable and vibrant business climate for rural America through the preservation of long-standing tax code provisions. These provisions are fundamental to the financial health of production agriculture and the businesses that supply its inputs, transport its products, and market its commodities.

With more than 370 million acres expected to change hands in the next two decades, the policies Congress enacts now will determine agricultural producers’ ability to secure affordable land to start or expand their operations. In the letter to Congress, three critically important tax provisions were highlighted.
 
Stepped-Up Basis: Assets in agriculture are typically held by one owner for several decades, so resetting the basis on the value of the land, buildings, and livestock on the date of the owner’s death under a step-up in basis is important for surviving family members and business partners to ensure the future financial stability of the operation.
 
Like-Kind Exchanges: This provision allows businesses to buy and sell like assets without tax consequences, thus helping farmers and ranchers, who are typically “land rich and cash poor,” maintain cash flow and reinvest in their businesses.
 
Sec. 199A Business Income Deduction: In order to maintain a reasonable level of taxation for pass-through businesses, like farms and ranches, it is critical to preserve Sec. 199A business income deduction.
 
“The agriculture industry is the backbone of many economies in rural America. When considering how to offset the cost of a comprehensive infrastructure package, it is essential that Congress preserve sound tax policies for our nation’s farmers, ranchers, and family-owned agribusinesses,” said NCBA CEO Colin Woodall. “Ultimately federal tax policy should help facilitate agricultural land transfer, not be a hinderance to that process. It's critically important that the policies Congress enacts now continue to allow the next generation—including beginning, veteran, and minority farmers and ranchers—to be successful.”
 
“Farmers and ranchers already face uncertainties with unpredictable weather and fluctuating markets. A sound tax policy should help them navigate those challenges, not add to the confusion,” said American Farm Bureau Federation President Zippy Duvall. “Generations of farmers have relied on important tax provisions like stepped-up basis and like-kind exchanges to grow their family-owned businesses and eventually pass them on to the next generation. Congress should refrain from creating tax rules that will make it harder for farms and ranches to stay viable for families now and for those that come after them.”



NCGA Joins Agricultural Tax Priorities Letter to Congress

This week, the National Corn Growers Association (NCGA) joined 39 agricultural organizations in a letter to Congressional leaders outlining key tax priorities including protecting current estate tax exemptions and preserving the step-up in basis for capital gains.

The letter comes just after President Biden proposed the American Families Plan, the second part of the President Build Back Better Plan. The plan includes over $1 trillion in new investments throughout the economy and $800 billion in tax cuts.

The $1.8 trillion plan proposes paying for the investments and tax cuts through reforms to the tax code, including ending the step-up of basis for capital gains more than $1 million ($2 million per couple). According to the White House, “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.”

The Administration is expected to continue to release more details on the proposals within the American Families Plan over the next few weeks. USDA has further outlined the potential protections for family farms.

Congress will ultimately decide, and vote on, the provisions included in any infrastructure and tax legislation. Discussions on Capitol Hill regarding a package are currently taking place, and NCGA is sharing corn farmer priorities with members of the House and Senate



Organic Soybean Market Challenges Point to Argentine Imports

The pain points in the organic soybean market are becoming a little clearer with the Mercaris Monthly Update report, released today. While it has been four months since the USDA National Organics Program (NOP) ended its recognition agreement with India’s Agriculture and Processed Food Products Export Development Authority (APEDA), the impacts on the market have been less straightforward than pointing to India as a source for the recent market challenges. In fact, the data is suggesting something different altogether.

“We saw markets initially brace for turmoil following the NOP’s announcement given that India accounted for 42 percent of U.S. organic soy supplies over the 2019/20 marketing year,” says Ryan Koory, director of economics for Mercaris. “However, since the NOP’s announcement, imports from India have actually increased 10 percent year over year from February to April 2021.”

Koory says that with Indian and organic soybean meal imports generally remaining strong, data suggests the pain point in U.S. organic soybean supplies appears to be organic whole soybean imports. Excluding India, organic whole soybean imports are down 24 percent year over year through April. Considering that whole soybean imports made up 75 percent of U.S. organic soy crush last year, that may explain the supply challenges purchasers are facing and Argentina is of special note.

“Historically, Argentina has played a major role in whole soybean imports, making up 35 percent of organic whole soybean imports in 2019/20,” adds Koory. “However, that number is down 68 percent year over year through April of this marketing year.”

Looking forward, Koory says to keep an eye on the Argentine bottleneck as it will be key to understanding the organic soybean market for the rest of the year.



U.S. and Mexico Keep Organic Trade Open

On May 7, 2021, Mexico’s agriculture secretariat (SADER) extended the deadline for U.S. organic exports to be certified to its Organic Products Law (LPO). U.S. Secretary of Agriculture Tom Vilsack met with his counterpart Secretary Victor Villalobos, and they agreed to extend the compliance deadline to December 31, 2021. Through 2021, USDA-certified organic products may continue to be exported, but on January 1, 2022, organic products exported from the U.S. to Mexico must be certified to the LPO standard.

USDA will continue to work with U.S. industry to assist in transitioning to LPO compliance and will continue to provide updates as necessary.



RFA to EPA: Allow E15 to Help Fill Void Created by Colonial Pipeline Shutdown

The Renewable Fuels Association today called on the U.S. Environmental Protection Agency to take immediate steps to facilitate increased use of low-carbon ethanol to fill the void in gasoline supplies along the Eastern Seaboard created by the Colonial pipeline shutdown.

In a letter to EPA Administrator Michael Regan, RFA President and CEO Geoff Cooper specifically asked EPA to suspend certain regulatory requirements that otherwise would impede and delay retailers from expanding the use of E15 to help offset fuel supply shortages. Cooper noted that some 180,000 barrels per day of ethanol production capacity is currently idle and could be “quickly activated or reoriented to help alleviate impending fuel shortages on the East Coast.”

More broadly, the pipeline shutdown highlights the risks of heavy dependence on a single fuel source. “The Colonial pipeline outage underscores a larger need for greater diversity and flexibility in our transportation fuels sector,” Cooper wrote. “Overreliance on petroleum has left our transportation fuels infrastructure vulnerable to disruption, with American consumers bearing the brunt of resultant price spikes and fuel shortages. By comparison, the fuel ethanol industry’s infrastructure is unconcentrated, dispersed, and uses a variety of efficient delivery channels. As the Biden administration pursues initiatives to expand and fortify our nation’s energy infrastructure, the Colonial pipeline shutdown serves as a poignant reminder that ethanol biorefineries are strategic assets that can and should play a larger role in powering America forward.”

Cooper noted that the Colonial pipeline outage continues to threaten gasoline supplies for much of the Eastern Seaboard. While Colonial has announced a goal of “substantially restoring operational service by the end of the week,” experts are expecting the supply disruption could impact the East Coast market for weeks and lead to the highest retail gas prices in at least seven years.



Growth Energy on Colonial Pipeline: The American Ethanol Industry Stands Ready to Respond

Today, the fifth day after the cyberattack on Colonial Pipeline, Growth Energy sent a letter to U.S. Environmental Protection Agency (EPA) Administrator Regan and U.S. Department of Energy (DOE) Secretary Granholm calling for immediately reduced restrictions to higher ethanol-blended fuels as relief for resulting supply disruptions and rising gas prices.  

“[E15] is now sold at nearly 2,400 locations across the country including several hundred locations throughout the southeast – where the impact of the Colonial is most felt. By immediately removing remaining regulatory hurdles and providing greater access to E15, you can help keep fuel prices in check for American consumers and ease concerns about fuel supply,” wrote CEO Emily Skor.

“We ask that you make E15 broadly available at all fuel terminals in areas impacted by related fuel shortages. We also request EPA finalize the proposed rule that would broaden the availability of existing infrastructure for use with E15 and related labeling concerns. We also urge you to remove unnecessary misfuelling requirements including restrictions on the use of E15 in shared fueling hoses with 10 percent blended fuel and related fuel sampling requirements. Finally, we strongly encourage the government to strengthen its use of higher ethanol blends such as E85 in its current flex-fuel vehicle fleet.”



Honor Your Mentor Through the Syngenta #RootedinAg Contest

Ag mentors come from all backgrounds. Some are more traditional, like our parents, grandparents, FFA leaders or ag teachers. Others are unconventional, like the random ag leader that showed up in your urban classroom. Regardless of who your mentor was, your story is special, and Syngenta wants to hear it, share it and celebrate you both through the #RootedinAg Contest.

Now accepting entries, contest participants are asked to share the story of who inspired them to be #RootedinAg. In exchange, they have a chance to honor that person and win prizes.   

Along with being featured in Thrive magazine, three finalists will each receive a mini touch-screen tablet with a case and wireless earphones. The grand prize winner receives a $500 gift card plus a professional photo shoot with his or her ag mentor. In addition, the winner has the opportunity to pay it forward by designating a $1,000 donation from Syngenta to a local charity or civic organization in their name.

"The roots of agriculture run deep from generation to generation," says Pam Caraway, communications lead at Syngenta. "Everyone has a unique story that deserves to be told — a story of resilience, of mentorship, of diversity, of family bonds. The #RootedinAg Contest gives us a chance to shine a light on these stories that are woven into the fabric of the industry we all love."   

The contest is open now. Here's how to enter:
    Go to syngentathrive.com/contest to review eligibility and fill out the brief #RootedinAg entry form.
    Write a paragraph or two (about 200 words) that describes the person who most inspired you and submit a photograph that supports the written entry.

The deadline for entering is June 30, 2021. A panel of judges then chooses the three finalists. The finalists' entries are posted on the Thrive website and visitors vote for their favorite. These votes, along with the judges' scores, determine the grand prize winner. Online voting ends Sept. 15, 2021. Syngenta announces the grand prizewinner in October.  



Vive Crop Protection receives EPA approval for the world's first three-way biological, chemical and Allosperse fungicide

AZterknot fungicide from Vive Crop Protection received approval from the U.S. Environmental Protection Agency recently.

AZterknot fungicide is the world's first three-way fungicide combination that harnesses the benefits of biologicals, the performance of chemistry and the ease of Allosperse®. Allosperse is proprietary nano-polymer technology developed by Vive Crop Protection that allows previously incompatible products to be mixed and applied in one application, reducing fuel, time and water usage.

Registered in a broad range of crops for soil and foliar applications, AZterknot provides the plant health and disease control benefits of two market-leading active ingredients: Reynoutria extract and azoxystrobin, the disease-fighting active found in AZteroid® FC 3.3 from Vive Crop Protection. These two modes of action combine with Vive's patented Allosperse technology to provide unparalleled handling ease and efficiency, systemic disease control and activation of the plant's natural defense mechanisms.

Darren Anderson, CEO of Vive Crop Protection says, "Biologicals are a large and growing segment, because they add additional performance and environmental benefits. But until now, delivering them to the field has been a challenge. For the first time, we have used Vive's patented Allosperse Delivery System to combine a biological and a chemical in the same jug. This provides growers the best of both worlds, allowing them to save valuable resources and money while increasing crop yields."

Anderson continues, "AZterknot is the first step in mobilizing the power of both biological and chemical active ingredients, using our Allosperse technology. Vive is working on a pipeline of products to integrate a broad range of biological actives with Allosperse and other trusted chemistries to provide grower solutions that were not possible before."

According to a recent Lux Research report, Joshua Haslun says, "One of the greatest challenges for biological products (is) in wide distribution and competition with conventional synthetics. Solving for shelf life and compatibility issues when used in combination with synthetic products would be a blockbuster advance for a biological product. With this in mind, Vive's current partnership with Marrone represents an opportunity to prove the additive value of the Allosperse technology."

Dan Bihlmeyer, VP Sales and Marketing at Vive Crop Protection says, "AZterknot opens up a world of possibilities for growers looking for the plant health benefits of biologicals and the power of trusted chemistry in one easy product. They'll find that AZterknot activates the plant's natural defenses and inhibits pathogen growth while providing systemic control of yield-robbing diseases."

The U.S. EPA approved AZterknot fungicide to address fungal diseases in important food, fiber and fuel crops. There is a growing demand, and an unmet need for a solution to address the annual US market of over 200 million acres of corn, rice, soybeans, peanuts, cotton, sugarbeets and potatoes.

Based on grower case studies, Vive products are estimated to have saved U.S. farmers 34 million gallons of water, 189,000 gallons of fuel and 15,000 hours of farm labor since 2018.

AZterknot will be available this summer through distributor and retail commercial channels in the U.S.