Thursday June 17 Ag News

 Rural Mainstreet Index Remains in Solid Growth Territory: Only 30% of Bankers See Inflation Gain as Transitory

For the seventh straight month, the Creighton University Rural Mainstreet Index (RMI) remained above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.         

Overall: The overall index for June fell to still strong 70.0 from May’s record high of 78.8.  The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

Approximately, 46.7% of bank CEOs reported that their local economy expanded between May and June.  

“Strong grain prices, the Federal Reserve’s record-low interest rates, and growing exports have underpinned the Rural Mainstreet Economy. Even so, current rural economic activity remains below pre-pandemic levels,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.  

However, several bankers raised future concerns. Steve Simon CEO of South Story Bank and Trust in Huxley, Iowa, reported, “Continued dry conditions will start to have an effect on markets and crops soon”

Bankers were asked to name the greatest threat to 2021-22 bank operations. Approximately one-fourth identified a downturn in farm income, and an equal one-in-four named rising government regulation as the greatest threats.    

Larry Winum, CEO of Glenwood State Bank in Glenwood, Iowa, named another concern stating that, “In my view, $29,000,000,000,000 in total debt with no real plan to reduce that debt, or balance the annual budget is the biggest threat to our economy's success.”

He argues that neither political party, nor the Federal Reserve, has engaged in a serious discussion to solve the problem.

Farming and ranching: For a ninth straight month, the farmland price index advanced significantly above growth neutral. The June reading slipped to a very strong 75.9 from May’s 78.1. This is first time since 2013 that Creighton’s survey has recorded nine straight months of farmland prices above growth neutral.

The June farm equipment-sales index rose to 71.6 from 67.9, its highest level since 2012, and up from May’s 67.9. After 86 straight months of readings below growth neutral, farm equipment sales bounced into growth territory for the last seven months. This is the best growth in this index since 2012.    

Below are the state reports:
Nebraska: The Nebraska RMI for June sank to 74.3 from May’s 88.0. The state’s farmland-price index declined to 78.0 from last month’s 82.7. Nebraska’s new-hiring index rose to 73.8 from 78.3 in May. As a result of recent solid job gains, U.S. Bureau of Labor Statistics data indicate that Nebraska’s Rural Mainstreet nonfarm employment is more than 6,000 jobs, or 2.1%, above its pre-COVID-19 level.

Iowa: The June RMI for Iowa sank to 63.7 from 79.9 in May. Iowa’s farmland-price index dipped to 72.7 from 78.6 in May. Iowa’s new-hiring index for June climbed to 68.5 from 68.4 in May. Despite recent solid job gains, U.S. Bureau of Labor Statistics data indicate that Iowa’s Rural Mainstreet nonfarm employment remains more than 15,000 jobs, or 2.3%, below its pre-COVID-19 level.

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities, and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.   

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005 and launched in January 2006.



Nebraska Cattlemen Foundation Recognizes 2021 Retail Value Steer Challenge Winners

The annual Nebraska Cattlemen Foundation (NCF) Retail Value Steer Challenge (RVSC) winners were honored at the NC Foundation lunch on June 10 during the Nebraska Cattlemen (NC) Midyear Meeting in Fremont. The RVSC is the primary fundraiser for NCF with money raised supporting youth & adult educational programs, scholarships, research & infrastructure projects, history preservation and judging teams at colleges in Nebraska. The Nebraska Cattlemen Foundation would like to recognize the support of Darr Feedlot, Cozad, for administration and feeding of the steers.

Three winners of each of the three categories were awarded for their steer’s performance in the Retail Value Steer Challenge. First place in the Average Daily Gain category was awarded to the steer owned by Nebraska Corn Board, and second place went to a steer owned by Mark Spurgin of Paxton and Steve Hanson of Elsie. The third place steer in the Average Daily Gain category was awarded to Platte River Investments of Kearney.

In the Carcass Value category, Nebraska State Bank & Trust Co. of Broken Bow owned the winning steer. Huss Livestock Market, LLC and Lexington Livestock Market received second place and West Point Implement & Design received the third place honors.

First place in the Total Value Category was a steer owned by the Shotkoski Hay Company of Lexington. Second place went to the steer owned by Darling International, Inc of Lexington and third place went to McLean Beef of Benedict.



Nebraska Cattlemen Foundation Announces the Dr. Jeff Fox Memorial Scholarship

On Thursday June 10th during the Nebraska Cattlemen Foundation (NCF) Lunch, NCF Board of Director Dr. Scott Reynolds announced the establishment of the Dr. Jeff Fox Memorial Endowed Scholarship. This endowed scholarship was established to honor the legacy of Dr. Fox and his contributions to the beef industry in Nebraska and nationwide.

Dr. Fox ran his own feedlot consulting business out of Beemer, Nebraska serving clients across three states. Jeff was passionate about the Beef Industry as was evident by his involvement in many industry related organizations. He was a Board member of the Nebraska Cattlemen serving on the Animal Health and Nutrition Committee, a member of the National Cattlemen’s Beef Association representing the industry on many committees, a member of the American Veterinary Consultants serving on the Beef Cattle Health and Well Being Committee as well many other local and community organizations.

The Dr. Jeff Fox Memorial scholarship will be available to individuals attending the University of Nebraska, Iowa State University, or Kansas State University who are either (1) a junior or senior undergraduate student majoring in Beef Production, Animal Science with beef emphasis, Feedlot Management or (2) graduate students enrolled in Veterinary Science programs.

Initial donors of the endowment fund include:
    Boehringer Ingelheim
    Elanco Animal Health
    Merck
    Zoetis
    Scott & Karen Langemeier

“The Dr. Jeff Fox Memorial Scholarship is a very rewarding project to see completed. It was fantastic to see four pharmaceutical companies and the Langemeier’s step forward with some great donations for this scholarship to honor Dr. Fox and his many contributions to our beef industry” said NCF Board of Director Dr. Scott Reynolds.



Nebraska Cattlemen Foundation Announces Scholarship Recipients

The Nebraska Cattlemen Foundation (NCF) announced during the Nebraska Cattlemen Midyear Meeting in Fremont that it awarded $69,500 in scholarships to 54 students furthering their education goals in the 2021-2022 academic year.

“The Foundation strongly believes in the importance of a sound education for tomorrow’s industry leaders and is pleased to be able to provide this funding to these outstanding students to aid in their academic career,” says Mark Jagels, president of the Nebraska Cattlemen Foundation. “Due to the generosity of many donors and the success of our Retail Value Steer Challenge fundraising project, the Foundation was able to offer these scholarships.”

Established in 2014, the Nebraska Cattlemen Beef State Scholarship is the premier Nebraska Cattlemen Foundation scholarship providing a $10,000 award to an outstanding junior, senior or graduate level Nebraska resident student enrolled in a Nebraska college or university pursuing a beef industry related degree.  The 2021 Nebraska Beef State Scholarship was awarded to Malina Lindstrom of Elm Creek. Malina will be a senior at UNL this fall double majoring in Animal Science and Agriculture Communications. Malina is also working on a minor in Beef Industry Scholars and is a member of the Senior Livestock Judging team.

The Nebraska Cattlemen Foundation was proud to have been able to partner with Central Life Sciences this year in supporting Nebraska’s future agriculture leaders with Central Life Sciences Scholarships. Through a rebate program on purchases of Altosid® IGR feed-through fly control, Central Life Sciences provided 4 – $1,200 scholarships awarded to students pursuing a degree in an agriculture related field of study. The students receiving the scholarships are Matthew Dailey of Thedford, Jais Ford of Cody, Ethan Kreikemeier of West Point and Dalton Kunkee of Lexington.

In addition to the Beef State Scholarship and Central life Sciences Scholarships, the Foundation awarded 49 additional scholarships to the following students:
Madison Adam – Alliance – $1,200 Frank & Shirley Sibert Scholarship
Lauren Ahlers – Rosalie – $1,000 Retail Value Steer Challenge Scholarship
Neligh Andersen – Gothenburg – $1,000 Retail Value Steer Challenge Scholarship
Taylor Cammack – Lincoln – $1,000 Retail Value Steer Challenge Scholarship
Seth Chandler – Anselmo – $1,000 West Central Affiliate Scholarship
Clay Curtis – Royal – $1,000 Retail Value Steer Challenge Scholarship
Jaylee Degroff – Burwell – $1,200 Jim & Helen Gran Scholarship
Kacey Dethlefs – Ravenna – $1,000 Retail Value Steer Challenge Scholarship
Brett Downing – Dunning – $1,000 Retail Value Steer Challenge Scholarship
Ashton Erickson – Wallace – $1,000 Retail Value Steer Challenge Scholarship
Kathlyn Hauxwell – McCook – $1,200 Vance Uden Memorial Scholarship
Taralee Hudson – Belvidere – $1,200 Bill Pullen Scholarship
Anna Ideus – Beatrice – $1,000 Retail Value Steer Challenge Scholarship
Devin Jakub – Lincoln – $3,500 Nebraska Cattlemen Foundation Scholarship
Jacque Johnson – Grand Island – $1,000 Retail Value Steer Challenge Scholarship
Eilzabeth Karnopp – Oakland – $1,000 Retail Value Steer Challenge Scholarship
Marissa Kegley – Kearney – $1,000 Retail Value Steer Challenge Scholarship
Heath Keiser – Gothenburg – $1,200 Ron & Shirley Huss Scholarship
Olivia Klug – Columbus – $1,000 Retail Value Steer Challenge Scholarship
Kate Krebs – Monticello, WI – $1,200 Martin Viersen Range Management & Conservation Memorial Scholarship
Korbin Kudera – Clarkson – $1,000 Retail Value Steer Challenge Scholarship
George Lee – Elsie – $1,000 Retail Value Steer Challenge Scholarship
Lindsi Loos – Litchfield – $1,000 Retail Value Steer Challenge Scholarship
Carsten Loseke – Columbus – $1,200 Todd Ricenbaw Memorial Scholarship
Abigail Lutjelusche – Richland – $1,200 Cattlemen’s Open Scholarship
Emily Martindale – Brewster – $1,000 Retail Value Steer Challenge Scholarship
Kaci Mashino – Spencer – $1,000 Retail Value Steer Challenge Scholarship
BaiLee McMillan – Milburn – $1,200 Bill Briggs Family Memorial Scholarship
Sydney Meyer – Aurora – $1,000 Retail Value Steer Challenge Scholarship
Abby Miller – Mead – $1,200 Col. Melvin Huss Memorial Scholarship
Katherine Mohr – Genoa – $1,000 Retail Value Steer Challenge Scholarship
Taylor Peter – O’Neill – $1,000 Retail Value Steer Challenge Scholarship
Bailee Porter – Ames, IA – $1,000 Retail Value Steer Challenge Scholarship
Laura Reiling – Lincoln – $1,200 Nebraska Cattlemen Beef Pit Scholarship
Ralston Ripp – Kearney – $1,000 Retail Value Steer Challenge Scholarship
Ashlyn Robinson – North Platte – $1,000 Retail Value Steer Challenge Scholarship
Rebel Sjeklocha – Lincoln – $1,000 Retail Value Steer Challenge Scholarship
Amber Staab – Ord – $1,000 Retail Value Steer Challenge Scholarship
Isaac Stallbaumer – Oconto – $1,000 West Central Affiliate Scholarship
Colton Thompson – Eustis – $1,200 Robert F. Lute II Memorial Scholarship
Kara Valasak – Lincoln – $1,200 Frank & Shirley Sibert Scholarship
Megan Vrbka – Staplehurst – $1,000 Retail Value Steer Challenge Scholarship
Wesley Wach – Wauneta – $1,200 Clarence & Lois Jean Hartmann Scholarship
Sydney Wellsandt – Unadilla – $1,000 Retail Value Steer Challenge Scholarship
Madalynn Welsh – Franklin – $1,000 Retail Value Steer Challenge Scholarship
James Wetovick – Fullerton – $1,200 Donavan Yoachim Memorial Scholarship
Sheridan Wilson – Lemoyne – $1,200 Bill Heller Memorial Scholarship
Michael Wolfe – Lincoln – $1,000 Retail Value Steer Challenge Scholarship
Kaden Wykert – Sutherland – $1,000 Retail Value Steer Challenge Scholarship



IRRIGATING ALFALFA IN-SEASON
– Todd Whitney, NE Extension Educator

Alfalfa is a relatively drought-tolerant forage, but irrigation makes it possible to produce higher yields. This perennial crop does not have specific critical growth stages when it is less sensitive to water stress. If water is not available, the plant will slow or stop growing and go dormant. Then, when water becomes available, growth resumes.

Alfalfa has a longer growing season, and it uses more water annually compared to other crops. However, you can over-water alfalfa resulting in plant injury and possibly weed invasion. Maintaining water use efficiency can be complicated due to multiple harvests preventing irrigation for about 7 to 10 days per growth cycle and frequent heavy equipment traffic compacting soils. To reduce compaction, stop irrigating 2-3 days before cutting the alfalfa and irrigating again when alfalfa regrowth begins. Heavy irrigation of alfalfa stubble may encourage weed growth.

Irrigation scheduling efficiency can be improved with using ET gages and/or soil moisture monitoring technology. Accurate weather forecasts can also allow growers to take full advantage of rainfall events and reduce irrigation applications.

Now that our summer temperatures and growth rates are increasing, daily water use is also increasing. Generally, the most yield impacting irrigation occurs just before the second cutting followed by the third and fourth growth periods typically requiring 6 to 7 inches of irrigation. Peak water usage is about 1/3 inch per day in July and August. However, hot, windy and dry days can move the maximum water demand up to ½ inch per day; so ET scheduling can provide economic benefits.

For more details about alfalfa irrigation, visit our UNL website: https://water.unl.edu Our NebGuide, G1778, “Irrigation Management and Crop Characteristics of Alfalfa” is a free useful resource.



Webinar planned on negotiation, communication skills for ag producers

Nebraska Extension’s Farm and Ranch Management team will share strategies for negotiating and communicating during the processes of farm transition planning and farmland leasing during a webinar at noon June 24.

Most of what agricultural producers experience during work on farm transition and farmland leasing issues relates to negotiation. The webinar will review how we have typically been taught to negotiate, look at alternative negotiating ideas and offer tips for good communication to improve relationships among colleagues, family members and landlords and tenants.

It will be presented by Allan Vyhnalek, an extension educator for farm and ranch succession and transition.

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



NeFB Webinar: Livestock Risk Protection

A fire, pandemic, and cybersecurity attack have rocked cattle markets over the last two years. The risks inherent in cattle production are growing every day. Cattle prices can swing wildly, and when market shocks occur, it’s too late for producers to respond.

Topic: Livestock Risk Protection
Date: Wednesday, June 30, 2021
Time: 12:00 - 1:00 p.m. (CT)
Location: Zoom Webinar
Moderator: Jay Rempe, senior economist, Nebraska Farm Bureau

Speakers:
    Zach Hyland, regional crop consultant, Farm Bureau Financial Services
    Rod Christen, farmer, Pawnee County
    Rob Wareham, farmer, Kansas

A pandemic, cybersecurity attack, export ban, import tariffs, and more have rocked cattle markets within the last 12-18 months. It seems like the risks inherent in cattle production are growing every day. Because it is typically 17 months from breeding to calf sale, cow/calf producers are especially susceptive to price risk. Cattle prices can swing wildly and when market shocks occur, it’s too late for producers to respond.

Producers participating will:
    Learn the details of LRP and how it works for both feeder and fed cattle from a Farm Bureau Financial Services expert;
    Hear first-hand from fellow cattle producers on their experiences with LRP—the good and the bad;
    Have the chance to ask questions of the panel on whether LRP might be a viable tool for their operations;
    Receive background information on LRP and contact information for members of the panel for follow up questions or for more details on LRP.

REGISTER HERE...
https://us02web.zoom.us/webinar/register/WN_9Q5cSNTjQGiA4pPdHRTHug
Nebraska Farm Bureau’s Inside Profitability Series is a series of webinars, podcasts, and social media events focused on producer profitability. The series will center on topics identified by Nebraska Farm Bureau members key to managing and maintaining economically viable farm and ranch operations.

If you have recommendations for subjects you would like to include in the series, please email Jay Rempe at jayr@nefb.org.



EPA Awards $2.5 Million for Iowa Farm Projects Improving Water Quality

At a media event at the Iowa State Capitol Building Wednesday, the U.S. Environmental Protection Agency (EPA) announced the award of $2.5 million to the Iowa Department of Agriculture and Land Stewardship, Iowa Department of Natural Resources, and Practical Farmers of Iowa, as part of the Agency's Farmer to Farmer grant program.

These projects support improving water quality, habitat, resilience, and peer-to-peer information exchange among farmers to benefit people and ecosystems from the northern watersheds all the way to the Gulf of Mexico. The three Iowa Farmer to Farmer projects are:

- Iowa Department of Agriculture and Land Stewardship, $1,000,000 - Fostering Opportunities for Water Quality Wetlands Demonstration Project

- Practical Farmers of Iowa, $979,915 - Strengthening Farmer Networks to Improve Water Quality and Wildlife Habitat in the On-Demand World

- Iowa Department of Natural Resources (IDNR), $559,258 - Mentoring for Success in the Beaver Creek Watershed

"EPA is proud to support the leadership of farmers and their innovative approaches to improve water quality while working to fuel and feed the world," said EPA Administrator Michael S. Regan. "EPA is committed to meaningful partnerships with farmers to advance sustainable agriculture practices while creating healthy, clean, and safe environments for all."

"It is critically important that we work with states, nonprofits, and farmers to reduce agriculture-related nutrients in our waters," said Acting EPA Region 7 Administrator Edward H. Chu. "The Farmer to Farmer program generates ideas and action by targeting funds on local solutions where we can make the greatest difference. I'm pleased that this funding will go to educate and empower farmers to implement best practices in their operations to reduce nutrient loads and improve water quality in the Upper Mississippi River Basin, including the North Raccoon River and Beaver Creek watersheds."

"There's a tremendous amount of conservation work underway across the state of Iowa thanks to the commitment of farmers and landowners and the financial and technical support of our public and private partners, including the EPA. These federal dollars allow us to continue building upon successful soil health and water quality projects in priority watersheds," said Iowa Secretary of Agriculture Mike Naig. "Improving water quality is a difficult task but we're continuously learning and testing new science-based practices to scale-up our efforts. This EPA grant allows us to test a new type of wetland that may be able to be used in more locations, which would allow us to make a greater impact on water quality in Iowa and downstream."

"The DNR is grateful to be a part of this unique opportunity to build upon the great work in the Beaver Creek watershed," said Lori McDaniel, IDNR Water Quality Bureau chief. "This grant will help us connect mentors with landowners and provide the necessary tools and resources to get nutrient management practices on the ground much quicker."

"The Beaver Creek WMA is very fortunate to be able to use EPA's Farmer to Farmer grant to promote soil health, edge of field practices, and floodplain restoration with the farmers, landowners, and communities in the Beaver Creek watershed," said Chuck Wenthold, chair of the Beaver Creek Watershed Management Authority, who will partner with IDNR to complete the project.

"Practical Farmers of Iowa is excited to work with the EPA and our state-level partners to engage farmers across the Mississippi River Basin in farmer-led efforts to improve water quality and wildlife habitat," said Sarah Carlson, strategic initiatives director, Practical Farmers of Iowa. "At PFI, we've seen how our farmer-to-farmer learning model empowers farmers to make changes that benefit soil, water, wildlife, and farm profitability. With this EPA funding, we'll be able to help more farmers tap into this powerful network and get the support they need to add cover crops and small grains, which are proven ways to improve water quality, soil health, and wildlife habitat while making their farms more resilient. "

In the Gulf of Mexico watershed, farmers manage millions of acres of privately held working lands. While farmers are working in this watershed to provide the food, fuel, and fiber for the world, they are also managing challenges across the landscape to minimize pollution occurring from a variety of locations known as "nonpoint sources," specifically the excess nitrogen and phosphorous that can enter waterbodies through runoff or soil erosion. Excess nutrients delivered to the Gulf of Mexico come from sources across the entire watershed; many of which are nonpoint sources from the agricultural landscape. Farmers are often the first line of action in reducing nonpoint source pollution and have developed innovative practices and models to share their knowledge with others.

The collaboration of a wide range of stakeholders and organizations across an entire watershed is vital to reducing nutrient pollution to our waters. Farmers can play an important leadership role in these efforts when they get involved and engage with their state governments, farm organizations, conservation groups, educational institutions, nonprofit organizations, and community groups.

The Farmer to Farmer grant funding is available to develop innovative practices within farming communities, measure the results of those practices, and identify how the practices will be incorporated into farming operations. Under this grant program, proposals will carry out project activities using one or more of the following methods: surveys, studies, research, investigation, experimentation, education, training, and/or demonstrations.

This grant program is managed by the Gulf of Mexico Division, which is a non-regulatory program of EPA founded to facilitate collaborative actions to protect, maintain, and restore the health and productivity of the Gulf of Mexico in ways consistent with the economic well-being of the region. To carry out its mission, the Gulf of Mexico Division continues to maintain and expand partnerships with state and federal agencies, federally recognized tribes, local governments and authorities, academia, regional business and industry, agricultural and environmental organizations, and individual citizens and communities.

For more information, visit: www.epa.gov/gulfofmexico.



FFAR Grant Improves Dairy Industry Sustainability

Agriculture generates roughly 10 percent of global greenhouse gas (GHG) emissions. Dairy farmers face increasing pressure from the private and public sectors to reduce emissions. Environmental practices can offset the dairy industry’s carbon footprint, but additional research is needed to determine their effectiveness. Thus, the Foundation for Food & Agriculture Research (FFAR) awarded a $10 million grant to the Dairy Research Institute (DRI) to support the dairy community’s Net Zero Initiative, an industry-wide effort to adopt practices and technologies that reduce GHG emissions and improve environmental health.

FFAR’s six-year grant is addressing research gaps in feed production and manure-based products that enhance the dairy industry’s sustainability goals. Dairy Management Inc. (DMI), Newtrient and other Net Zero Initiative partners, including Nestlé, are providing funding and in-kind support for a total project value of $23.2 million.

DMI scientists are helping to expand a soil health database to determine how soil characteristics vary in response to field management practices across different US regions where dairy operations are concentrated. The research team is also evaluating the ecosystem benefits of new manure-based fertilizer products. Researchers will work with modelers and use the soils database to improve predicted outcomes of alternative management strategies.

This research will be executed across four dairy regions responsible for about 80 percent of US milk production: Northeast, Lakes, Mountain and Pacific. Dozens of dairies representing different climates and soils across major production regions are participating in a baseline survey of soil health and carbon storage. Additionally, eight regional farms, including five operating dairies, two university research dairies and one USDA-ARS research farm, are participating in the project. The objective is to engage farmers in soil health management practices and monitor changes in GHG emissions, soil carbon storage, soil health and water quality.

Based on previous stakeholder engagements, the project team believes that providing the dairy community with comprehensive data and best practices modeling tools will increase adoption of environmentally beneficial practices.

“Addressing the US dairy industry’s emissions is a critical solution to climate change,” said FFAR Executive Director Dr. Sally Rockey. “I know dairy farmers are working hard to decrease their environmental footprint and I’m thrilled to support  their efforts by advancing research needed to adopt climate-smart practices on dairy farms across the country.”

“After six years, we will have data that accurately reflect our farms’ greenhouse gas footprint for dairy crop rotations with consideration for soil health management practices and new manure-based products,” said Dr. Jim Wallace, senior vice president of environmental research for DMI. “We expect to develop critical insights that link soil health outcomes, such as carbon sequestration, with practice and technology adoption. This will provide important background information to support the development of new carbon and water quality markets.”  

Net Zero Initiative is an industry-wide effort led by six national dairy organizations: DMI, Innovation Center for U.S. Dairy, International Dairy Foods Association, Newtrient, National Milk Producers Federation and the U.S. Dairy Export Council. The FFAR grant will advance the work of the Net Zero Initiative in collaboration with the Soil Health Institute and leading dairy research institutions, including: Cornell University, University of California at Davis, University of Texas A&M AgriLife Research, University of Wisconsin-Madison, University of Wisconsin-Platteville, University of Vermont and USDA-ARS, Northwest Irrigation and Soils Research in Kimberly, ID.

For information about the dairy checkoff, visit www.usdairy.com.



 USGC Suggests Ethanol Use As Carbon-Neutral Solution In South Korea

The U.S. Grains Council (USGC) emphasized ethanol as one of the most effective transportation fuels for achieving South Korea’s carbon neutrality goals by 2050 during the Carbon Neutral Symposium held there on May 27.

“Bioethanol can smoothly bridge the transition from vehicles with internal combustion engines to eco-friendly mobility, helping Korea make a soft landing on carbon neutrality,” said Haksoo Kim, USGC director in South Korea. “Now is the time to shift our mindset.”

Many other countries have committed to greenhouse gas emission (GHG) reductions under the Paris Agreement and more than 60 have introduced ethanol fuel policies to help meet those commitments. Kim has said Korea, that relies heavily on smokestack industry and is the 12th largest GHG emitter, will continue to feel pressure to comply with the new global order.

Use of bioethanol fuel is a global trend, and with a stronger drive toward carbon neutrality, more countries have initiated new bioethanol fuel policies or expanded existing programs. In Korea, the Council sees a way that bioethanol fuel can bridge the gap between internal combustion engine vehicles and future driving options.

The Council’s key message offered by Kim was promoted online and offline through 15 major Korean media outlets and by energy and climate change experts in the country.

Ahead of the 2021 P4G Seoul Summit hosted by the Republic of Korea and a global acceleration event for market-based partnerships in developing countries, Kim’s presentation and the symposium provided a valuable opportunity to educate Korean consumers and experts who lack information about bioethanol. The Korean government has said it is looking to expand the extent of carbon reduction by 2030 and reach carbon neutrality by 2050.

During the symposium, which boasted more than 200 bioenergy experts participating online, officials from the Ministry of Trade, Industry and Energy, the Ministry of Environment, the Carbon Neutrality Committee and bioenergy-related industry experts presented and joined panel discussions on the government's policy direction and the industry's action plans to realize carbon neutrality in transportation fuel and power generation sectors.

In his comments, Kim reminded Korean government officials about the benefits of bioethanol blending as they continue to make decisions to meet their environmental commitments.

“On top of the current plan for expanding the use of biodiesel to five percent, the government needs to introduce policies requiring active use of fuels mixed with bioethanol, as well,” Kim said.

As the fourth-largest market for U.S. ethanol - mostly for industrial uses, South Korea set a new import record in 2019/2020, increasing purchases year-over-year to roughly 113 million gallons, equal to 40.1 million bushels of corn.



 U.S., EU Reach Agreement on Aircraft Dispute

Earlier this week, the U.S. and EU reached a deal to end a nearly 20-year trade dispute over aircraft subsidies and agreed to a five-year cease-fire on retaliatory tariffs impacting ag trade.

The American Soybean Association recently signed onto a letter and a statement imploring the U.S. and EU to reach a deal on the dispute and is encouraged by this breakthrough—and the positive implications for future relations with an important U.S. soy trade partner.

Last month, the EU announced it would postpone increasing tariffs or implementing additional tariffs on American-made products as leaders met virtually for discussions on global steel and aluminum excess overcapacity. Both agreed to outline an end to the WTO disputes following the U.S. application of tariffs on imports from the EU under section 232 in 2018, which resulted in retaliatory tariffs on U.S. goods ranging from Kentucky bourbon to motorcycles.

Why it matters: A strong trade relationship with the EU is critical to U.S. soy growers. According to USSEC, the EU imports about 14 million tons of soybeans per year as a source of quality protein to feed its animals, including chicken, pigs, and cattle, as well as for milk production. The U.S. remains one of Europe’s top soybean suppliers.

 
    
Senate Commerce Committee Passes Surface Transportation Reauthorization

In a predominantly bipartisan vote, the Senate Commerce Committee this week passed the Surface Transportation Investment Act of 2021 out of committee. The bipartisan 5-year $78 billion measure was introduced by Committee Chair, Sen. Maria Cantwell (D-WA), and Sen. Roger Wicker (R-MS), the top Republican on the Committee.

The Surface Transportation Investment Act of 2021 will:
    Authorize $78 billion over the next five years; this includes $36 billion for rail, $28 billion for multimodal grants, and $13 billion for safety programs.
    Include the addition of the backend 150 air-mile exemption from hours-of-service, which ASA urged support for.
    Allow for the Farm-Related Restricted CDL program to restart at the beginning of each calendar year, which ASA urged support for, with an additional commitment to increase the number of days from 180 to 210 before the bill goes to the Senate floor.
    Invest an average of $1.2 billion annually in the National Significant Multimodal Freight grant program (INFRA).
    Create a new office of Multimodal Freight Infrastructure and Policy, update the National Freight Strategic Plan, and improve coordination between federal and state governments on freight planning.
    Improve the Railroad Rehabilitation and Improvement Financing Program (RRIF) by making it more useful to potential borrowers through expanded eligibility and credit risk premium assistance.

The bill will be combined with the Senate Environment and Public Works Committee’s Surface Transportation Reauthorization Act of 2021, as well as financing and transit issues measures that emerge from the Senate Finance and Banking Committees, respectively.

The American Soybean Association will continue working with coalition partners to urge incorporation of additional provisions related to hours-of-service and farm-related CDL into the legislation before it is considered on the Senate floor.

In addition to continued movement on this topic in the Senate, it is anticipated the House will consider its surface transportation reauthorization proposal, the INVEST in America Act, before the July 4 recess.

Larger infrastructure talks are continuing among a bipartisan group of Senators, House Democrats, and the White House.



Statement from Agriculture Secretary Tom Vilsack on Organic Livestock and Poultry Practices Final Rule

Agriculture Secretary Tom Vilsack released the following statement today in regard to the Organic Livestock and Poultry Practices (OLPP) final rule:

“We intend to reconsider the prior Administration’s interpretation that the Organic Foods Production Act does not authorize USDA to regulate the practices that were the subject of the 2017 Organic Livestock and Poultry Practices (OLPP) final rule. I have directed the National Organic Program to begin a rulemaking to address this statutory interpretation and to include a proposal to disallow the use of porches as outdoor space in organic production over time and on other topics that were the subject of the OLPP final rule. We anticipate sending the proposed rule to OMB within six to nine months from the date of the remand. We look forward to receiving public comments on those topics and, after reviewing the comments, USDA will publish a final rule.”



World Ag Expo on Track for February Show

World Ag Expo will return live to the International Agri-Center showgrounds in Tulare, CA for the 2022 show. The COVID pandemic forced a transition to a digital format for the 2021 show year.

"We are excited to be back on track," said Jerry Sinift, International Agri-Center CEO. "The 2020 show was fantastic but was followed by COVID uncertainty. Our team did an amazing job creating a solid digital show for 2021 and now we're all happy to be planning a live event for 2022."

Exhibitors have been renewing their spaces in droves since March with 68% of booth spaces already sold. Another 10% of spaces are pending as returning exhibitors are requesting expansion of existing space and new exhibitors are signing up for the first time. Major manufacturers including John Deere, AGCO, Case IH, New Holland, Kubota, and Kioti have all committed to the February event.

"We're getting a lot of positive feedback from exhibitors," said Lisa McCrea, Exhibitor Services Leader. "They are eager to be here with us in 2022 and are looking forward to a great show!"

The return of the live event is also an economic boon for the Central Valley and California. In 2020, World Ag Expo generated $52.3 million in economic output, supported 568 jobs, and contributed $20.3 million in labor income in California. Tulare County saw the most benefit where spending totaled $30.9 million, supported 384 jobs, and contributed $12.6 million in labor income.