Soybean Gall Midge Alert: Adult Detection
Justin McMechon, NE Extension Cropping Systems and Crop Protection Specialist
Soybean gall midge adult emergence was first reported in Minnesota on June 14th, northwestern Iowa on June 15th, and southern South Dakota on June 16th. Continued adult emergence has occurred at a number of sites in east-central and northeast Nebraska over the past week with adult emergence first occurring on May 31st near Syracuse, NE.
Larval Presence in Soybean
Larvae were first detected in soybean in Otoe County near Syracuse, NE on June 12th with orange larvae in a few plants. Although the presence of orange larvae in soybean is early it is not surprising since adults were first detected on May 31st. White larvae have also been found on soybean near Lancaster, Cass, Saunders, and Stanton County, Nebraska. White larvae were also found in Rock County, MN yesterday.
Vilma Montenegro, a master’s student at the University of Nebraska-Lincoln is conducting an experiment on seasonal larval abundance in soybean from two sites every three days. Random plant collections on June 14th found the 66% and 55% of plants were infested in the first 10’ from the field edge. June 17th collections found a similar percentage of infested plants at 55% and 77% with an average of less than five larvae per plant. Orange larvae have been found in soybean near Otoe, Lancaster, and Saunders County, NE. Orange larvae were also found on soybean in Sioux County, IA today. These orange larvae are the last stage before the larvae fall to the soil, pupate and emerge as adults.
No larvae have been found on plants in South Dakota.
Soybean Injury
Wilting and dead plants were observed for the first time this year in Otoe County, NE on June 17th. Only a low percentage of plants were showing signs of wilting. No plant injury has been reported in northeast Nebraska, Iowa, Minnesota or South Dakota.
Management Recommendations:
Nebraska:
Foliar applications have not produced a consistent response in field studies conducted in Nebraska over the past two years
We do not recommend spraying fields that have reached or passed the V4 stage as they likely already infested with larvae
Applications could be made to late-planted soybean fields that have a history of soybean gall midge injury when the plants reach the V2 stage and if adult emergence is still being reported in that area
Only consider spraying fields with a history of soybean gall midge injury as early-season application can increase the risk of other pest problems
Iowa:
There have been no signs or larvae or plant injury.
Early-vegetative foliar insecticides have not produced consistent plant protection. But spraying before plants get infested could increase the likelihood of injury suppression.
Minnesota:
Unless you have experienced yield loss from soybean gall midge in the past no action is recommended.
Some eggs and larvae are already present within stems. Any insecticide applications will be effective only on late egg-laying by overwintering adults.
Insurance insecticide applications are strongly discouraged because of the hot, dry conditions increasing the risk of spider mite.
More information at www.soybeangallmidge.org.
MANAGING SEEDING YEAR ALFALFA
– Ben Beckman, NE Extension Educator
Alfalfa seeded this spring is ready, or soon will be ready, to cut. Hot dry weather means proper care and management now could have big impacts on cuttings later this year. Use the following harvest guidelines to get the most from your first-year alfalfa.
Seeding year alfalfa is different from established stands. Stems are spindly, roots are small and shorter, and growth is a little slower.
You can harvest seeding year alfalfa as early as 40 days after seedlings emerge. Again this is 40 days after emergence, not planting. Alfalfa takes about 40 days to develop the ability to regrow from the crown after cutting. Plants cut before this point need at least one set of leaves remaining to regrow. So, if you need to cut early for something like weed or insect control, cut high.
Although alfalfa seedlings can be harvested 40 days after emerging, I think it’s better to wait until around 60 days after emergence, at late bud to early bloom stage, before the first cutting. Yield will be a little higher and plants will withstand weather stress easier with a little extra growth. This extra time also allows increases root development, helping avoid problems from soil compaction or surface soil dryness.
After the first cutting, regrowth of seedling alfalfa will become more similar to established alfalfa, giving you the opportunity for two or three cuts the first year.
One last point – while it may seem like a long way off, never cut seeding year alfalfa during the four week period before a killing freeze. Winter injury can be severe due to reduced winterhardiness of new plants. Look ahead at the calendar now to plan when future cuts might be taken to avoid cutting during this sensitive time.
First year alfalfa can be productive, just manage it right.
Saunders County Corn Growers Association Hosts Annual Meeting
Last week, the Saunders County Corn Growers Association hosted their delayed Annual Meeting at the Lake Wanahoo Education Building outside of Wahoo. Over 100 members from across the county gathered for food and fellowship.
The group welcomed Anne Thompson, director, PAC and political strategy for the National Corn Growers Association as the keynote speaker for the evening. Anne gave the attendees an update from Washington, D.C. and how NCGA is working for corn growers across the country and in Nebraska.
Other speakers included Dave Bruntz, chairman of the Nebraska Corn Board and Morgan Wrich, director of grower services for NeCGA.
A highlight of the evening was honoring retired extension educator, Keith Glewen. Keith was an integral part of the Saunders County Corn Growers Association for many decades and was a key part of the growth and success of the local. The Saunders County Corn Growers Association and NeCGA are thankful for Keith's years of service.
Nebraska Poultry and Egg Committee to Meet Tuesday
The Nebraska Poultry and Egg Development, Utilization and Marketing Committee has planned a meeting for June 22 at 12:30 p.m at Capitol View Winery in Roca.
The current agenda of subjects to be discussed at this meeting is available for public inspection at the offices of the Nebraska Department of Agriculture, Poultry and Egg Division, 521 First Street, Milford.
Please send any funding requests or additions to the PED agenda to Kylie no later than June 18.
Join members of the poultry industry in Nebraska for an evening of networking, live music, food and fun after the scheduled meetings. There is no cost to attend the event, please register in advance to ensure an accurate meal count.
Please contact the PED office at 402-761-2216 or kylie@youraam.com if you have any questions.
Farm Management Specialist Reminds Iowa Farm Employers to Focus on Employee Well-being
The late-spring heatwave that blanketed Iowa and much of the Midwest is a reminder for farm employers and employees to focus on human resources.
Melissa O’ Rourke, fam management specialist with Iowa State University Extension and Outreach, said people are the most valuable asset in a farm or rural business.
“In any business, including farming, the most important resource is the people,” O’Rourke said. “We need to do whatever we can to preserve and protect what I think of as a priceless resource – our people.”
In the June edition of Ag Decision Maker, O’Rourke outlines some basic ways that farm employers can protect workers from heat stress and illness. She also provides an updated checklist that covers all the major aspects of farm worker hiring and employment.
O’Rourke said it’s common for a farm business to begin within a family – and human resources may not be the first thought that comes to mind. But as the business grows, so does the need for labor and employee engagement.
The Checklist for Iowa Agricultural Employers covers information such as how to recruit candidates and conduct interviews, how to evaluate candidates and make a selection, employee policy documents, and federal and state forms that must be completed. The checklist also provides updated links and resources that take the user to extension information, as well as state and federal websites.
Several new resources have been added that cover worker classification, job analysis and creating job descriptions.
“It’s important that farm and ag business employers think about the business needs, and clearly define what skills and qualifications can be the key to guiding an effective hiring and employee retention strategy,” said O’Rourke, who is also a licensed attorney.
Although a farm may not have a full human resources department – O’Rourke said it really only takes a few minutes to address most of the concerns employers and employees may have.
She said employers can make use of posters from OSHA to explain basic safety concepts such as avoiding heat stress, and that posters can easily be hung in places where they will serve as reminders to workers.
She also advises employers to take advantage of safety talks with their employees and to include heat stress prevention as one of the topics. It takes as little as five minutes to remind employees what to do, and what resources are available.
The talk may be as simple as reminding everyone where water is located, when breaks can be taken, and any changes to the day’s schedule to work around the heat. Keeping everyone informed can also help boost worker morale and enthusiasm, in addition to protecting their physical health.
“These are small things that can be quick reminders to keep ourselves safe and to watch out for others,” she said. “So often, that is all it takes is that reminder.”
IFBF Cookout Contest returns to Iowa State Fair
The pandemic year was full of challenges; however, it put an emphasis back on at-home dining and an opportunity for Iowans to enhance their meat cooking skills. With the return of the Iowa State Fair comes the annual Iowa Farm Bureau Federation (IFBF) Cookout Contest—a chance for outdoor cooking enthusiasts to show off their skills on the grand concourse on Tuesday, Aug. 17.
To compete at the state level in this ‘meaty’ competition, backyard chefs must win a county contest (entrants do not have to be a resident of the county contest they compete in). Entry categories include beef, lamb, pork, poultry, turkey, a “specialty” food (such as fish or goat), or a combo dish of two or more meats. There is also a team, showmanship and youth division.
Finalists get a chance to win cash, prizes and the honor of being named the Iowa Farm Bureau Cookout Contest champion. The youth winner will win a new gas grill donated by the Iowa Propane Gas Association, valued at more than $1,000.
“This contest attracts thousands of Iowans every year to the grand concourse and is a celebration of what Iowa farmers do best—produce sustainable, nutritious, real meat proteins for Iowa families to enjoy,” says Craig Hill, IFBF president and fourth generation farmer. “Visitors will enjoy seeing the creative ways our cookout contestants prepare their dishes, and we hope that inspires many to try new meat cuts, preparation methods or unique recipes to recreate the grilling experience at home.”
To find a qualifying contest and rules for entry, visit https://www.iowafarmbureau.com/Article/Iowa-Farm-Bureau-Cookout-Contest.
NASS Reschedules Reports Due to New Juneteenth Holiday
The National Agricultural Statistics Service's Agricultural Statistics Board has rescheduled two reports due to the observance of the Juneteenth Federal holiday on June 18 as Federal offices will be closed.
The Milk Production and Peanut Prices reports currently scheduled for release on Friday will move to Monday at 3 p.m. ET.
Quarterly USDA Hogs and Pigs Report Analysis
You're invited to register for our next free webinar for pork producers. Guest speakers will discuss their insights and analysis on the Quarterly USDA Hogs and Pigs Report that will be released on June 24. Analysts include:
Dr. Steve Meyer — Partners for Production Agriculture
Dr. Lee Schulz — Iowa State University
Dr. Tyler Cozzens — Livestock Marketing Information Center
Kevin Grier — Kevin Grier Market Analysis and Consulting
Webinar: Quarterly USDA Hogs and Pigs Report Analysis
Thursday, June 24
3:30 p.m. CST
Register here: https://pork.zoom.us/webinar/register/WN_Ks25Ea4VQwG1Ryy5XmDE2w.
National Pork Board Names 2021-2022 Officers
Gene Noem, a pork producer from Iowa, was elected to serve as president of the National Pork Board for the 2021-2022 term. The National Pork Board’s 15 producer directors represent America’s 60,000 pig farmers, who pay into the Pork Checkoff – a program funding research, promotion and education efforts for the benefit of the whole industry.
“I look forward to leading the Pork Checkoff and representing America’s pig farmers,” said Noem. “Rising feed costs, ongoing pandemic recovery, and the lingering threat of African swine fever (ASF) are just a few of many challenges facing our industry. That said, I remain optimistic about what’s ahead for U.S. pork.”
Priorities for Noem’s term as president include advancing the Real Pork trust and image brand to tell a more complete farm-to-fork story and protect producers’ freedom to operate; diversifying export markets; and continuing efforts to keep ASF and other foreign animal diseases (FAD) out of the country and providing tools such as AgView for producers in the event of an FAD.
“Despite the impact of COVID-19 on our industry, we have strong momentum in our favor. Especially after the successful launch of Real Pork and AgView,” said Noem, who finishes hogs at JMG Farms in Howard County and also manages the contracted gilt multiplication for PIC North America. “The Checkoff will continue to deliver on these and other priorities, identified in the industry’s annual planning process, for the common good of all pork producers.
In addition to Noem, other members of the Pork Board’s 2021-2022 executive officer team include Vice President Heather Hill, from Greenfield, Indiana and Treasurer Russ Nugent, from Lowell, Arkansas. David Newman from Jonesboro, Arkansas will serve as Past President in an ex-officio status.
Other producers appointed by U.S. Secretary of Agriculture Tom Vilsack to serve terms on the Pork Board include:
Patrick Bane, Illinois
Jeremy Burkett, Wyoming
Rich Deaton, Ohio
Denise Mason, North Carolina
Bob Ruth, Pennsylvania
Dale Stevermer, Minnesota
NCGA Elects Haag to Corn Board Leadership
The National Corn Growers Association’s Corn Board elected Tom Haag to become the organization’s first vice president for the next fiscal year, which begins October 1. Haag is a fourth-generation family farmer in south-central Minnesota. Along with his son, Nathan, he grows more than 1,700 acres of corn and soybeans.
“The quality and character of the men and women who step forward, generously giving their time and energy, never ceases to amaze me. I am confident that Tom will continue in this tradition,” said NCGA President John Linder. “In his state-level service, through work on Action Teams and as a member of the Corn Board, he has demonstrated an unwavering dedication to working on behalf of all of his fellow farmers. As he steps into this new role, I look forward to the work, collaboration, and growth that will help further our mission under his leadership.”
On the national level, Haag serves as the Corn Board liaison to the Market Development Action Team and as the Board liaison to the BNSF Railway Ag Business Council and the American Coalition for Ethanol.
FDA ANNOUNCES FINAL GUIDANCE ON OTC ANTIMICROBIAL ANIMAL ANTIBIOTICS
Last week the Food and Drug Administration (FDA) announced final guidance regarding recommendations to sponsors of medically important antimicrobial antibiotics approved for over-the-counter use in animals. The guidance contains information for sponsors of new animal drugs to facilitate voluntary changes to the prescription marketing status.
The guidance-- from over-the-counter use to under veterinary oversight-- will be phased in over the next two years. Additionally, FDA plans to work with stakeholders to solicit feedback.
In 2017, all feed and water-delivered antibiotics for animals transitioned either to under the Veterinary Feed Directive or prescription status, and this recent guidance is the next step, covering the remaining medically important injectable or oral antibiotics.
NPPC URGES MASSACHUSETTS TO DELAY RESTRICTIVE PORK PRODUCTION INITIATIVE
On Thursday, the National Pork Producers Council filed comments on a Massachusetts state bill (S. 2470) that would make substantive changes to Question 3, a 2016 ballot initiative which prohibits the sale of pork produced using certain production methods. In many ways, Question 3 is substantially similar to Proposition 12, a California ballot initiative which passed in 2018.
The Massachusetts initiative is set to begin on Jan. 1, 2022, but first requires the commonwealth’s attorney general to draft implementation rules—which have not been started. Among changes, S. 2470 would shift primary responsibility for promulgating regulatory requirements to the Massachusetts Department of Agricultural Resources, with the Massachusetts Attorney General having an advisory role. “NPPC strongly supports this provision, which has been put forth by the attorney general,” it wrote.
Meantime, NPPC reiterated the need for Question 3’s implementation to be delayed by two years, to Jan. 1, 2024. “Meeting the requirements of Question 3 is difficult enough to do in normal conditions, requiring significant investments of labor and capital as farmers must convert to a compliant system in order to meet Question 3’s requirements. The time and cost of this challenge has been exacerbated over the last two years as the industry struggles to overcome the challenges – both to our workers and to the marketplaces for pigs and pork – caused by COVID-19,” NPPC wrote.
Further Resolution to the Aircraft Trade Dispute between the U.S. and UK is Welcome News for Wheat Grower Organizations
U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the announcement that the United Kingdom (UK) and the United States agreed to a five-year moratorium on retaliatory tariffs for large civil aircraft subsidies. This break suspends the retaliatory tariffs levied on non-durum U.S. wheat imports by the UK. The agreement is similar to one struck earlier this week between the United States and the European Union (EU). This long-running dispute at the World Trade Organization allowed the UK and EU the right to impose tariffs on non-durum U.S. wheat imports, which mainly impacted U.S. hard red spring and some hard red winter wheat.
"The wheat industry is thankful for President Biden and Ambassador Tai's commitment to prioritize the trade relationships between the United States, European Union, and now the United Kingdom," said NAWG CEO Chandler Goule. "The five-year truce announced on Tuesday with the EU and yesterday with the UK removes a significant trade barrier on wheat exports and provides long-term certainty for wheat growers in the upper Midwest."
USW President Vince Peterson noted that this agreement provides the basis for an open dialogue on trade that hopefully will also pre-empt the use of retaliatory tariffs in the still unresolved steel and aluminum dispute between the United States and the UK.
Wells Fargo Crashes and Burns with New RINs Analysis
Geoff Cooper, President and CEO, Renewable Fuels Association
Earlier this week, equity analysts at Wells Fargo released a note to investors on the subject of the Renewable Fuel Standard and its compliance credit (RIN) market mechanism.
We wouldn’t typically respond to an investment bank research note, but we felt compelled to reply to the Wells Fargo update for two reasons. First, the note is so replete with factual errors, uninformed opinions, and outright falsehoods that we felt the responsibility to correct the record. Secondly, we understand the Wells Fargo note is being shared liberally around Capitol Hill by oil refinery lobbyists hoping to boost their unjustified case for “regulatory relief” (i.e., compliance bailouts). We want to ensure lawmakers and regulators are hearing both sides of the story.
To Pass Through or Not to Pass Through?
Within the span of just the first three sentences of the note, Wells Fargo says “RIN prices pass through to retail consumers,” then claims “merchant refiners struggle to recover elevated RIN costs.” The contradictions continue throughout the report’s introduction, with Wells Fargo stating that waiving renewable fuel blending obligations would cause an “immediate decline” in retail gas prices and somehow financially “benefit” refiners at the same time. Then a few lines later, the analysts admit that “refining profitability would not materially change” with an RFS waiver because “even merchant refiners are capturing” RIN values. Confused yet? So are we. So, which is it? Refiners either pass along (and fully recover) their RIN costs or they don’t. It’s one or the other. It can’t be both.
In reality, refiners who deliberately choose not to blend renewable fuels do indeed pass along their RIN costs – but not to retail consumers. Refiners don’t sell gasoline or other refined products to consumers; they sell gasoline blendstock to blenders on the wholesale market. It is well established that RIN costs are “baked into” gasoline crack spreads (i.e., refining margins). The wholesale price blenders pay for gasoline includes the refiner’s cost of the RIN. Those blenders—many of whom are owned by, or integrated with, oil refining companies—mix ethanol with the gasoline to produce the finished fuel that is sold to consumers at retail stations. And when the ethanol is blended in, the RIN cost attached to the gasoline is offset and erased.
A detailed analysis of RIN pass-through by EPA explains it this way: “When RIN prices rise, the market price of the petroleum blendstocks produced by refineries also rise to cover the increased RIN costs…The effective price of renewable fuels, however, decreases as RIN prices increase. When renewable fuels are blended into petroleum fuels these two price impacts generally offset one another…”
Similarly, a study by University of California-Davis and Iowa State University economists found, “…the net effect on the price of E10 of high RIN prices is zero: higher gasoline prices are offset by lower ethanol blending costs and the price of E10 remains constant.”
Throughout the analysis, Wells Fargo never really makes up its mind on whether refiners recoup their RIN costs or not (hint: they do).
Econ 101
Wells Fargo also asks investors to willingly suspend their disbelief by claiming that RIN prices have no impact on renewable fuel production, blending levels, or ethanol profit margins. Yet, data from the Energy Information Administration show that the average ethanol content in U.S. gasoline hit record levels in recent months as RIN prices began to increase. And data released by EPA just yesterday showed that RIN credit generation in May reached a 17-month high, up 8% from April and up 35% from the same month a year ago. In other words, RIN generators (i.e., renewable fuel producers) responded to higher RIN prices by increasing the production of renewable fuels, thereby increasing the supply of RINs. Increased demand for RINs resulted in increased supply of RINs…what a concept. Adam Smith would be proud.
Court Case Confusion
It is also clear the Wells Fargo analysts haven’t read up on the pending Supreme Court decision involving the Tenth Circuit Court’s opinion in Renewable Fuels Association et al. v. EPA. The authors say they “do not expect a long-term effect on the RINs market regardless of the [Supreme Court] decision, given SREs requests must be reassessed and issued annually.” Huh? It is widely believed—including by the refiners themselves—that if the Tenth Circuit decision is affirmed, no more than two or three small refineries would possibly be eligible for SREs moving forward (compared to the 30-plus exemptions handed out in recent years). If the Tenth Circuit decision isn’t expected to impact RIN prices, why then did refiners go to the trouble of appealing it to the Supreme Court?
That’s a Lot of Corn!
The report goes further downhill when it gets into the impacts of the RFS, RIN markets, and any potential regulatory changes on the corn market. The authors are correct that total cropland acres planted have declined since the RFS was adopted, as crop yields have risen. But they suggest U.S. corn production increased from 150 billion(!) bushels to around 175 billion(!) bushels during that time (that is 10-12 times larger than the actual U.S. corn crop and would be enough corn to produce more than 500 billion gallons of ethanol, entirely replacing global gasoline consumption…maybe ethanol really is taking over the world!)
Carbon Cost Controversy
Wells Fargo’s note then turns to a bizarre and impossible-to-follow analysis of the RFS program’s “cost of emissions reduction.” The authors assert that D6 RINs “offer an exceptionally expensive path to CO2 reduction.” Aside from the basic fact that RINs were intended to function primarily as RFS proof-of-compliance credits (not as carbon credits), the Wells Fargo carbon emissions abatement cost analysis falls completely flat. Based on some opaque calculations and faulty assumptions, the analysts suggest the cost of D6 ethanol RINs translates to a GHG reduction cost of $270 to $1164 per ton!
But a more straightforward and more transparent analysis shows that the RFS and its RIN mechanism are far more economical and efficient when it comes to GHG reduction—even though RINs were not originally intended to serve as carbon reduction credits. Here are the simple assumptions and calculations that should have been used:
- A recent analysis published in an academic journal by Argonne National Laboratory scientists found that corn ethanol had an average lifecycle carbon intensity of 52 grams of CO2-equivalent GHG emissions per megajoule of energy (g/MJ) in 2019, even including hypothetical land-use change emissions. That compares to a conservative estimate of 93 g/MJ for gasoline. Thus, ethanol offered a 44% GHG reduction relative to gasoline in 2019.
- EPA data show that 14.75 billion D6 RINs were generated for conventional ethanol production in 2019.
- A gallon of ethanol contains 81.5 megajoules of energy and a gallon of gasoline contains 119.5 megajoules, according to DOE and the California Air Resources Board.
- On an energy equivalent basis, 14.75 billion gallons of ethanol would replace 10.1 billion gallons of gasoline in the fuel supply.
- Consumption of 10.1 billion gallons of gasoline would result in GHG emissions of 112 million metric tons of CO2e, while consumption of 14.75 billion gallons of ethanol would result in 62.5 million metric tons of CO2e.
- That means using ethanol in lieu of gasoline reduced GHG emissions by 49.5 million metric tons in 2019.
- The average D6 RIN price in 2019 was about 17 cents, meaning the total RIN value associated with 14.75 billion gallons of conventional ethanol was $2.5 billion.
- Thus, the D6 RIN value associated with GHG emissions reduction from conventional ethanol was $50.51 per ton. That compares favorably to carbon credit values of nearly $200 per ton under the California Low Carbon Fuel Standard (with each credit representing one metric ton of GHG reduction).
- Even if D6 RIN prices averaged 70-80 cents apiece, the implied cost of GHG reduction via conventional ethanol would be equivalent to the recent price of California LCFS credits.
- This simple analysis omits the fact that ethanol is typically priced lower than gasoline and other octane boosters, meaning ethanol’s economic efficiency for reducing carbon is even better than stated here.
Clearly, the RFS is doing a cost-effective job of reducing GHG emissions from the transportation sector, even though the RIN was not originally designed to primarily serve as an incentive for carbon reduction.
Be Careful What You Wish For!
In the end, Wells Fargo’s sloppy analysis leads the authors to the conclusion that EPA should just “eliminate ethanol RINs” to help refiners. The irony of this recommendation is that it was oil refiners who demanded that Congress include a compliance credit trading market in the legislation that created the RFS (and they worked with EPA to develop the RIN program). But let’s play this out: If EPA were to entirely do away with the RIN credit mechanism altogether (as Wells Fargo suggests), refiners would have no choice but to purchase and physically blend the required volumes of renewable fuels to comply with the law…which would be just fine with us.
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